Document:

Exhibit 10.1

AMENDMENT NO. 1 to SECOND

AMENDED AND RESTATED LEASE RECEIVABLES PURCHASE AGREEMENT

dated as of September 20, 2002

THIS AMENDMENT NO. 1 (“Amendment”), to the

SECOND AMENDED AND RESTATED LEASE RECEIVABLES PURCHASE AGREEMENT, dated as of

August 5, 2002 (as the same may be amended, restated, supplemented or otherwise

modified from time to time, the “LRPA”), among HPSC Bravo Funding LLC, a

Delaware limited liability company (“HPSC Bravo”), as the Seller

thereunder, HPSC, Inc., a Delaware corporation (“HPSC Inc.”), as the

Servicer thereunder, Triple-A One Funding Corporation, a Delaware corporation

(“Triple-A”), and Capital Markets Assurance Corporation, a New York

stock insurance company (“CapMAC”), as Collateral Agent and

Administrative Agent thereunder, is entered into by each of the foregoing as of

September 20, 2002.  Capitalized terms

used herein and not otherwise defined herein shall have the meanings assigned

to such terms in the Definitions List referenced in the LRPA.

PRELIMINARY STATEMENTS

HPSC Bravo, HPSC Inc., Triple-A and CapMAC wish to

amend the LRPA in certain respects and as a result have agreed to amend the

LRPA on the terms and conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the premises set

forth above, and other good and valuable consideration, the receipt and

sufficiency of which are hereby acknowledged, HPSC Bravo, HPSC Inc., Triple-A

and CapMAC agree as follows:

(a)           The definition of “Eligible

Receivable” contained in the Definitions List referenced in Section 1.01 of

the LRPA is hereby amended to delete the percentage “20%” from clause

(xxiii)(D) thereof and substitute the percentage “25%” therefor.

(b)           The Definitions List referenced in

Section 1.01 of the LRPA is hereby amended to delete therefrom the definition

of “Facility Limit” and to substitute therefor the following definition

of “Facility Limit”:

 “Facility Limit” means, as of any date

of determination, (i) $450,000,000, as such amount may be reduced pursuant to Section

2.03 of the Triple-A Purchase Agreement.

SECTION 2.  Representations

and Warranties.  Each of HPSC Bravo

and HPSC Inc. represents and warrants as follows:

(a)  This

Amendment and LRPA as previously executed and as amended hereby, constitute

legal, valid and binding obligations of each of HPSC Bravo and HPSC Inc. and

are enforceable against each of HPSC Bravo and HPSC Inc. in accordance with

their terms.

 

1

 

(b)  Upon the

effectiveness of this Amendment, HPSC Bravo hereby reaffirms that the

representations and warranties contained in Article IV of the LRPA are

true and correct.

(c)  Upon the

effectiveness of this Amendment, each of HPSC Bravo and HPSC Inc. hereby

reaffirms all covenants made in the LRPA and the other Facility Documents to which

it is a party to the extent the same are not amended hereby and agrees that all

such covenants shall be deemed to have been remade as of the effective date of

this Amendment.

(d)  No

Wind-Down Event or Unmatured Wind-Down Event or Event of Termination has

occurred or is continuing.

SECTION 3.  Conditions

Precedent.  This Amendment shall

become effective as of the date hereof, provided that all of the

following conditions are met in form and substance satisfactory to Triple-A and

CapMAC:

(a)  This Amendment

shall have been executed and delivered by HPSC Bravo, HPSC Inc., Triple-A and

CapMAC, and

(b)  On the

date the last of the conditions listed herein is satisfied (the “Delivery

Date”) there shall exist no Wind-Down Event or Unmatured Wind-Down Event or

Event of Termination under any HPSC Agreement.

SECTION 4.  Reference

to and Effect on the LRPA.  (a)

Except as specifically set forth above, the LRPA, and all other documents,

instruments and agreements executed and/or delivered in connection therewith, shall

remain in full force and effect, and are hereby ratified and confirmed.  The execution, delivery and effectiveness of

this Amendment shall not, except as expressly provided herein and for the

limited purposes set forth herein, operate as a waiver of any right, power or

remedy of Triple-A or CapMAC, nor constitute a waiver of any provisions of the

LRPA, or any other documents, instruments and agreements executed and/or

delivered in connection therewith.

(b) Upon the effectiveness of this Amendment, each

reference in the LRPA to “this Agreement”, “hereunder”, “hereof”, “herein” or

words of like import shall mean and be a reference to the LRPA as amended

hereby, and each reference to the LRPA in any other document, instrument or

agreement executed and/or delivered in connection with the LRPA shall mean and

be a reference to the LRPA as amended hereby.

SECTION 5.  Effect

on Purchase Agreement.  Each of HPSC

Bravo and HPSC Inc. hereby acknowledge that, upon the effectiveness of this

Amendment, each reference in the Purchase Agreement to the terms “Eligible

Receivable” and/or “Facility Limit” shall mean and be a reference to such terms

as amended hereby, that such amendments shall be effective for all purposes of

the Purchase Agreement, and that each reference to the Purchase Agreement in

any other document, instrument or agreement executed and/or delivered in

connection with the Purchase Agreement shall mean and be a reference to the

Purchase Agreement as so amended.

SECTION 6.  Headings.  Section headings in this Amendment are

included herein for convenience of reference only and shall not constitute part

of this Amendment for any other purpose.

 

2

 

SECTION 7.  Governing

Law.  This Amendment shall be

governed by and construed in accordance with the laws (including Section 5-1401

of the General Obligations Law but otherwise without respect to conflict of law

principles) of the State of New York.

SECTION 8.  Counterparts.  This Amendment may be executed by one or more

of the parties to this Amendment on any number of separate counterparts and all

of said counterparts taken together shall be deemed to constitute one and the

same instrument.

The remainder of this page is intentionally blank.

 

3

 

IN WITNESS WHEREOF, this

Amendment has been duly executed as of the day and year first above written.

 

	

   

  	

  HPSC BRAVO FUNDING LLC, as Seller

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  Rene

  Lefebvre

  
	

   

  	

  Title: 

  Manager

  
	

   

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  HPSC, INC., as Servicer

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  Rene

  Lefebvre

  
	

   

  	

  Title: Chief Financial Officer

  
	

   

  	

   

  	

   

  
	

   

  	

  TRIPLE-A ONE FUNDING CORPORATION, as Purchaser

  
	

   

  	

   

  	

   

  
	

   

  	

  By CAPITAL MARKETS ASSURANCE CORPORATION,  Its Attorney-In-Fact

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  Richard

  Langberg

  
	

   

  	

  Title: Director

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  CAPITAL MARKETS ASSURANCE CORPORATION, as Collateral

  Agent and Administrative Agent

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  Richard

  Langberg

  
	

   

  	

  Title: Director

  

 

 

4

Q_L301_.DOC (883363 v. 1)Exhibit

10.2

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT by and between HPSC, Inc., a Delaware

corporation (the “Company”), and John W. Everets (the “Executive”), is made as

of July 19, 2002.

 

W I T N E S S E T H

 

WHEREAS, the Executive has served as Chairman and

Chief Executive Officer of the Company since July 19, 1993, most recently

pursuant to an employment agreement dated July 19, 1999 (as amended and

restated August 4, 2000);

 

WHEREAS, the Company wishes to provide for the

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

to continue to serve the Company, on the terms and conditions set forth in this

Agreement;

 

NOW, THEREFORE, it is hereby agreed as follows:

 

1.             EMPLOYMENT

PERIOD.  The Company shall employ the

Executive, and the Executive shall be an employee of the Company, on the terms

and conditions set forth in this Agreement, for a period (the “Employment

Period”) commencing on July 19, 2002 (the “Effective Date”) and ending on the

third anniversary of the Effective Date; provided, however, that, on the third

anniversary of the Effective Date and each subsequent anniversary thereof (each

of such third and subsequent anniversaries, an “Extension Date”), the

Employment Period shall automatically be extended for one additional year

unless, at least six months prior to the applicable Extension Date, the Company

or the Executive shall have given notice not to extend this Agreement.  The Employment Period shall end upon the

termination of the Executive’s employment hereunder, as of the Date of

Termination (as defined in Section 4(d)).

 

2.             SCOPE

OF EMPLOYMENT.  (a)  POSITION. During the Employment Period, the

Executive shall continue to serve as Chairman of the Board of the Directors and

Chief Executive Officer of the Company. 

The Executive shall adhere to policies established by the Board of

Directors of the Company (the “Board”).

 

(b)           DUTIES.  During the Employment Period, and excluding

any periods of vacation and sick leave to which the Executive is entitled, the

Executive shall devote reasonable attention and time during normal business

hours to the business and affairs of the Company and, to the extent necessary

to discharge the responsibilities assigned to the Executive under this

Agreement, use the Executive’s reasonable best efforts to carry out such

responsibilities faithfully and efficiently. 

It shall not be considered a violation of the foregoing for the

Executive to serve on corporate, industry, civic or charitable boards or

committees, so long as such activities do not significantly interfere with the

performance of the Executive’s responsibilities as an employee of the Company

in accordance with this Agreement.

 

(c)           LOCATION.  The Company’s headquarters shall be located

in Boston, Massachusetts, and the Executive shall be based and reside in the

general area of Boston, except for reasonable travel obligations.

 

 

3.             COMPENSATION.  The Executive’s compensation during the

Employment Period shall be determined by the Board upon the recommendation of

the committee of the Board having responsibility for approving the compensation

of senior executives (the “Compensation Committee”), subject to Sections 3(a)

through 3(d).

 

(a)           BASE

SALARY.  During the Employment Period,

commencing on the Effective Date, the Executive shall receive an annual base

salary (“Base Salary”) as determined by the Compensation Committee from time to

time.  Commencing July 1, 2002, the

Executive’s Base Salary shall be at a rate of not less than $375,000.  The Base Salary shall be payable in

accordance with the Company’s regular payroll practice for its senior

executives, as in effect from time to time.

 

(b)           INCENTIVE

PLAN.  The Compensation Committee has

developed an incentive compensation plan (“Incentive Plan”) for key management

employees.  The Incentive Plan is

designed to pay the Executive up to One Hundred Percent (100%) of his annual

base salary for achieving the results established by the Compensation

Committee.  The Executive shall be

eligible to receive awards under the Incentive Plan, as determined annually by

the Compensation Committee.

 

(c)           OTHER

INCENTIVE COMPENSATION.  During the

Employment Period, the Executive shall be eligible for additional awards under

the Company’s Amended and Restated 1998 Stock Incentive Plan, as it may be

amended from time to time, or under any subsequent similar plans, as determined

by the Compensation Committee.

 

(d)           OTHER

BENEFITS.  During the Employment Period,

(i) the Executive shall participate in all applicable savings and retirement

plans, practices, policies and programs of the Company that are from time to

time applicable to senior executives of the Company including the Company’s

Employee Stock Ownership Plan and Supplemental Executive Retirement Plan; (ii)

the Executive and/or the Executive’s eligible dependents, as the case may be,

shall be eligible for participation in, and shall receive all benefits under,

all applicable welfare benefit plans, practices, policies and programs provided

by the Company, including, without limitation, medical, prescription, dental,

disability, salary continuance, employee life insurance, group life insurance,

accidental death and travel accident insurance plans and programs on the same

basis and subject to the same terms, conditions, cost-sharing requirements and

the like as senior executives of the Company; and (iii) the Executive shall be

entitled to receive fringe benefits on a basis not less favorable than provided

to other senior executives of the Company. 

Specifically, the Executive shall be entitled to four (4) weeks of vacation

annually and an appropriate vehicle provided by the Company.

 

4.             TERMINATION

OF EMPLOYMENT.  This Employment

Agreement may be terminated as provided in Sections 4(a) through 4(d).  Termination pursuant to any of Sections 4(a)

through 4(d) is subject to the provisions of Section 5.

 

(a)           DEATH

OR DISABILITY.  The Executive’s

employment shall terminate automatically upon the Executive’s death.  The Company shall be entitled to terminate

the Executive’s employment because of the Executive’s Disability (as defined in

the Company’s long-term disability insurance policies).  A termination of the Executive’s employment

by the

 

2

 

Company for Disability shall be communicated to the Executive by

written notice, and shall be effective on the 30th day after receipt of such

notice by the Executive (the “Disability Effective Date”), unless the Executive

returns to full-time performance of the Executive’s duties before the

Disability Effective Date.

 

(b)           TERMINATION

BY THE COMPANY.  (i)  FOR CAUSE. The Company may terminate the

Executive’s employment for Cause at any time during the Employment Period as

follows.

 

(A)          “Cause” means the conviction of the

Executive for the commission of a crime involving moral turpitude, or willful

gross misconduct by the Executive in connection with his employment by the

Company that results in material and demonstrable financial harm to the

Company.  No act or failure to act on

the part of the Executive shall be considered “willful” unless it is done, or

omitted to be done, by the Executive in bad faith or without reasonable belief

that the Executive’s action or omission was in the best interests of the

Company.  Any act or failure to act that

is based upon authority given pursuant to a resolution duly adopted by the

Board, or the advice of counsel for the Company, shall be conclusively presumed

to be done, or omitted to be done, by the Executive in good faith and in the

best interests of the Company.  In the

event of a dispute concerning the application of this provision, no claim by

the Company that Cause exists shall be given effect unless the Company

establishes to the Board by clear and convincing evidence that Cause exists.

 

(B)           A termination of the Executive’s

employment for Cause shall not be effective unless it is accomplished in

accordance with the following procedures. 

The Company shall give the Executive written notice (“Notice of

Termination for Cause”) of its intention to terminate the Executive’s

employment for Cause, setting forth in reasonable detail the specific conduct

of the Executive that it considers to constitute Cause and the specific

provisions of this Agreement on which it relies, and stating the date, time and

place of the Special Board Meeting for Cause. 

The “Special Board Meeting for Cause” means a meeting of the Board

called and held specifically and exclusively for the purpose of considering the

Executive’s termination for Cause, that takes place not less than twenty nor

more than thirty business days after the Executive receives the Notice of

Termination for Cause.  The Executive

shall be given an opportunity, together with counsel, to be heard at the

Special Board Meeting for Cause.  The

Executive’s termination for Cause shall be effective when and if a resolution

is duly adopted at the Special Board Meeting for Cause by the affirmative vote

of three-quarters of the entire membership of the Board stating that, in the

good faith opinion of the Board, the Executive is guilty of the conduct

described in the Notice of Termination for Cause and that such conduct

constitutes Cause under this Agreement.

 

(ii) WITHOUT CAUSE.  The Company may terminate the Executive’s

employment without cause at any time during the Employment Period.

 

3

 

(c)           TERMINATION

BY THE EXECUTIVE.  (i)  FOR GOOD REASON.  The Executive may terminate employment for Good Reason at any

time during the Employment Period as follows.

 

(A)          “Good Reason” means:

 

I.              the assignment to the Executive of any duties or

responsibilities inconsistent in any respect with those customarily associated

with the position of Chairman of the Board and Chief Executive Officer

(including status, offices, titles and reporting requirements) or any other

action by the Company that results in a diminution or other material adverse

change in the Executive’s position, authority, duties or responsibilities,

other than an isolated, insubstantial and inadvertent action that is not taken

in bad faith and is remedied by the Company promptly after receipt of notice

thereof from the Executive;

 

II.            any failure by the Company to comply

with any provision of Section 3 of this Agreement, other than an isolated,

insubstantial and inadvertent failure that is not taken in bad faith and is

remedied by the Company promptly after receipt of notice thereof from the

Executive;

 

III.           any requirement by the Company that

the Executive be principally based at any office or location more than 25 miles

from the Company’s current offices in Boston, Massachusetts; or

 

IV.           any failure by the Company to comply

with Section 11(c) of this Agreement;

 

(B)           For purposes of this Section 4(c),

any reasonable determination of “Good Reason” made by the Executive shall be

conclusive.  A termination of employment

by the Executive for Good Reason shall be effectuated by giving the Company

written notice (“Notice of Termination for Good Reason”) of the termination,

setting forth in reasonable detail the specific conduct of the Company that

constitutes Good Reason and the specific provision(s) of this Agreement on

which the Executive relies.  A

termination of employment by the Executive for Good Reason shall be effective

on the fifth business day following the date when the Notice of Termination for

Good Reason is given, unless the notice sets forth a later date (which date

shall in no even be later than 30 days after the notice is given).

 

(C)           The failure to set forth any fact or

circumstance in a Notice of Termination for Good Reason shall not constitute a

waiver of the right to assert, and shall not preclude the Executive from

asserting, such fact or circumstance in an attempt to enforce any right under

or provision of this Agreement.

 

(ii)           WITHOUT GOOD REASON.  The Executive may terminate his employment

without Good Reason at any time during the Employment Period by giving the

Company written notice of the termination.

 

4

 

(d)           DATE

OF TERMINATION.  The “Date of

Termination” means the date of the Executive’s death, the Disability Effective

Date, the date on which the termination of the Executive’s employment by the

Company for Cause or without Cause or by the Executive for Good Reason is

effective, the date on which the Executive gives the Company notice of a

termination of his employment without Good Reason, or the date of expiration of

this Agreement, as the case may be.

 

5.             OBLIGATIONS

OF THE COMPANY UPON TERMINATION.  (a) BY

THE COMPANY OTHER THAN FOR CAUSE; UPON NON-RENEWAL BY THE COMPANY OR THE

EXECUTIVE; OR BY THE EXECUTIVE FOR ANY REASON. 

Except as provided in Section 6 below, if, during the Employment Period,

the Company terminates the Executive’s employment for any reason, other than

Cause or the Executive’s death or Disability; the Company or the Executive

notifies the other pursuant to Section 1 of its or his intent not to extend

this Agreement; or the Executive terminates his employment for any reason; the

Company shall

 

(i)            continue to pay the Executive his

Base Salary for a period of twelve months following the Date of Termination;

 

(ii)           pay the Executive twelve monthly

payments, each equal to one-twelfth (1/12) of the maximum incentive

compensation the Executive could have earned during the twelve months following

the Date of Termination;

 

(iii)          continue benefits to the Executive

and/or the Executive’s family for a period of twelve months following the Date

of Termination at least equal to those which would have been provided in

accordance with the applicable health, medical, life, disability and other

welfare benefit plans, programs, and practices described in Section 3(d)

as if the Executive’s employment had not been terminated; and

 

(iv)          except in the case of termination by

the Executive without Good Reason, cause all of the Executive’s outstanding

equity awards, to the extent then unvested or forfeitable, to immediately and

fully vest and, to the extent then not exercisable, to become immediately and

fully exercisable.

 

(b)           DEATH

OR DISABILITY.  If the Executive’s

employment is terminated by reason of the Executive’s death or Disability

during the Employment Period, the Company shall

 

(i)            continue to pay to the Executive or,

in the case of the Executive’s death, to the Executive’s designated

beneficiaries (or, if there is no such beneficiary, to the Executive’s estate

or legal representative) the Executive’s Base Salary for a period of six months

following the Date of Termination; and

 

(ii)           continue benefits to the Executive

and/or the Executive’s family for a period of six months following the Date of

Termination at least equal to those which would have been provided in

accordance with the applicable health,

 

5

 

medical, life, disability and other welfare benefit

plans, programs, and practices described in Section 3(d) as if the

Executive’s employment had not been terminated.

 

(iii)          cause all of the Executive’s

outstanding equity awards, to the extent then unvested or forfeitable, to

immediately and fully vest and, to the extent then not exercisable, to become

immediately and fully exercisable.

 

(c)           BY

THE COMPANY FOR CAUSE.  If the

Executive’s employment is terminated by the Company for Cause, the Company’s

only obligation to the Executive will be to pay any arrearages of salary or

incentive compensation as of the Date of Termination.

 

6.             CHANGE

OF CONTROL.  Notwithstanding the

provisions of Section 5 to the contrary, in the event a Change in Control (as

such term is defined in the Company’s 1998 Amended and Restated Stock Incentive

Plan) occurs, the following shall apply.

 

(a)           If,

during the three (3) year period following a Change in Control, the Executive’s

employment is terminated by the Company for any reason other than for Cause, if

the Executive’s employment is terminated by reason of the Executive’s death or

Disability, or if the Executive terminates his employment for Good Reason:

 

(i)            The Company shall pay the Executive

in a lump sum payable within 30 days after the Date of Termination an amount

equal to the average of his total compensation from the Company which was

includable in the Executive’s gross income for federal income tax purposes (as

reported on IRS Form W-2) for each of the preceding five (5) calendar years

ending before the date of the Change of Control multiplied by 2.99; provided,

however, that the Executive may choose, in his discretion, to receive a lesser

amount than he is entitled to receive under this Section 6(a)(i) if after

consultation with the Compensation Committee he determines that it is in his

best interests to accept a lesser amount;

 

(ii)           The Company shall cause all of the

Executive’s outstanding equity awards, to the extent then unvested or

forfeitable, to immediately and fully vest and, to the extent then not

exercisable, to become immediately and fully exercisable; and

 

(iii)          The Company shall continue benefits to

the Executive and/or the Executive’s family for a period of twelve months

following the Date of Termination at least equal to those which would have been

provided in accordance with the applicable health, medical, life, disability

and other welfare benefit plans, programs, and practices described in

Section 3(d) as if the Executive’s employment had not been terminated.

 

(b)           If,

during the three (3) year period following a Change in Control, the Executive

terminates his employment for any reason other than for Good Reason:

 

(i)            the Company shall continue to pay

the Executive his Base Salary for the twelve (12) months following the Date of

Termination and the Company shall pay the Executive twelve monthly payments,

each equal to one-twelfth (1/12) of the

 

6

 

maximum incentive compensation the Executive could

have earned during the twelve (12) months following the Date of Termination;

and

 

(ii)           The Company shall continue benefits to

the Executive and/or the Executive’s family for a period of twelve months

following the Date of Termination at least equal to those which would have been

provided in accordance with the applicable health, medical, life, disability

and other welfare benefit plans, programs, and practices described in

Section 3(d) as if the Executive’s employment had not been terminated.

 

(c)           If,

during the three (3) year period following a Change in Control, the Executive

is terminated by the Company for Cause, the Company’s only obligation to the

Executive will be to pay any arrearages of salary or incentive compensation as

of the Date of Termination.

 

7.             NON-EXCLUSIVITY

OF RIGHTS.  Nothing in this Agreement

shall prevent or limit the Executive’s continuing or future participation in

any plan, program, policy or practice provided by the Company or any of its

affiliated companies for which the Executive may qualify (including, but not

limited to, the Employee Stock Ownership Plan and the Supplemental Executive

Retirement Plan), nor shall anything in this Agreement limit or otherwise

affect such rights as the Executive may have under any contract or agreement

with the Company or any of its affiliated companies.  Vested benefits and other amounts that the Executive is otherwise

entitled to receive under any plan, policy, practice or program of, or any

contract of agreement with, the Company or any of its affiliated companies on

or after the Date of Termination shall be payable in accordance with the terms

of each such plan, policy, practice, program, contract or agreement, as the

case may be, except as explicitly modified by this Agreement.

 

8.             FULL

SETTLEMENT.  The Company’s obligation to

make the payments provided for in, and otherwise to perform its obligations

under, this Agreement shall not be affected by any set-off, counterclaim,

recoupment, defense or other claim, right or action that the Company may have

against the Executive or others.  In no

event shall the Executive be obligated to seek other employment or take any other

action by way of mitigation of the amounts payable to the Executive under any

of the provisions of this Agreement and such amounts shall not be reduced,

regardless of whether the Executive obtains other employment.

 

9.             CONFIDENTIAL

INFORMATION; NON-COMPETITION.  (a) The

Executive shall hold in a fiduciary capacity for the benefit of the Company all

secret or confidential information, knowledge or data relating to the Company

or any of its affiliated companies and their respective businesses that the

Executive obtains during the Executive’s employment by the Company or any of

its affiliated companies and that is not public knowledge (other than as a

result of the Executive’s violation of this Section 9) (“Confidential

Information”).  The Executive shall not

communicate, divulge or disseminate Confidential Information at any time during

or after the Executive’s employment with the Company, except with the prior

written consent of the Company or as otherwise required by law or legal

process.

 

(b)           If

the Executive has terminated his employment for any reason other than Good

Reason, the Executive agrees not to compete with the business of the Company or

be

 

7

 

employed by a competitor of the Company while the Executive is

receiving termination payments under Section 5.

 

10.           INDEMNIFICATION;

ATTORNEYS’ FEES.  The Company shall pay

or indemnify the Executive to the full extent permitted by law and the by-laws

of the Company for all expenses, costs, liabilities and legal fees which the

Executive may incur in the discharge of his duties hereunder.  The Company also agrees to pay, as

incurred,  to the fullest extent

permitted by law, or indemnify Executive if such payment is not legally

permitted, for all legal fees and expenses that the Executive may in good faith

incur as a result of any contest by the Company, the Executive or others of the

validity or enforceability of or liability under, or otherwise involving, any

provision of this Agreement, upon receipt of the Executive’s undertaking to

repay any such amount advanced if the Company prevails upon the final

disposition of such action.

 

11.           SUCCESSORS.  (a) This Agreement is personal to the

Executive and, without the prior written consent of the Company, shall not be assignable

by the Executive otherwise than by will or the laws of descent and

distribution.  This Agreement shall

inure to the benefit of and be enforceable by the Executive’s legal

representatives.

 

(b)           This

Agreement shall inure to the benefit of and be binding upon the Company and its

successors and assigns.

 

(c)           The

Company shall require any successor (whether direct or indirect, by purchase,

merger, consolidation or otherwise) to all or substantially all of the business

and/or assets of the Company expressly to assume and agree to perform this

Agreement in the same manner and to the same extent that the Company would have

been required to perform it if no such succession had taken place.  As used in this Agreement, “the Company”

shall mean both the Company as defined above and any such successor that

assumes and agrees to perform this Agreement, by operation of law or otherwise.

 

12.           MISCELLANEOUS.  (a) This Agreement shall be governed by, and

construed in accordance with, the laws of the Commonwealth of Massachusetts,

without reference to its principles of conflict of laws.  The captions of this Agreement are not part

of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or

modified except by a written agreement executed by the parties hereto or their

respective successors and legal representatives.

 

(b)           All

notices and other communications under this Agreement shall be in writing and

shall be given by hand delivery to the other party or by registered or

certified mail, return receipt requested, postage prepaid, addressed as

follows:

 

If to the Executive:

 

John W. Everets

72 Chestnut Street

Boston, Massachusetts

02108

 

8

 

If to the Company:

 

HPSC, Inc.

60 State Street

Boston, Massachusetts

02109

 

or to such other address as either party furnishes to the other in

writing in accordance with this Section 12(b). 

Notices and communications shall be effective when actually received by

the addressee.

 

(c)           The

invalidity or unenforceability of any provision of this Agreement shall not

affect the validity or enforceability of any other provision of this

Agreement.  If any provision of this

Agreement shall be held invalid or unenforceable in part, the remaining portion

of such provision, together with all other provisions of this Agreement, shall

remain valid and enforceable and continue in full force and effect to the

fullest extent consistent with law.

 

(d)           Notwithstanding

any other provision of this Agreement, the Company may withhold from amounts

payable under this Agreement all federal, state, local and foreign taxes that

are required to be withheld by applicable laws or regulations.

 

(e)           The

Executive’s or the Company’s failure to insist upon strict compliance with any

provisions of, or to assert any right under, this Agreement (including, without

limitation, the right of the Executive to terminate employment for Good Reason

pursuant to paragraph (c) of Section 4) shall not be deemed to be a waiver of

such provision or right or of any other provision of or right under this

Agreement.

 

(f)            The

Executive and the Company acknowledge that this Agreement supersedes any other

agreement between them concerning the subject matter hereof.

 

(g)           The

rights and benefits of the Executive under this Agreement may not be

anticipated, assigned, alienated or subject to attachment, garnishment, levy,

execution or other legal or equitable process except as required by law.  Any attempt by the Executive to anticipate,

alienate, assign, sell, transfer, pledge, encumber or charge the same shall be

void.  Payments hereunder shall not be

considered assets of the Executive in the event of insolvency or bankruptcy.

 

(h)           This

Agreement may be executed in several counterparts, each of which shall be

deemed an original, and said counterparts shall constitute but one and the same

instrument.

 

(i)            The

obligations of the Company and the Executive under Sections 5, 6, 7, 8, 9, 10,

11 and 13 shall survive the expiration or termination for any reason of this

Agreement.

 

13.           GROSS-UP PAYMENT

 

(a)           DEFINITIONS.

 

9

 

“Code” means the Internal Revenue Code of 1986, as

amended, and regulations and proposed regulations thereunder.

 

“Excise Tax” means the excise tax imposed by Code

Section 4999.

 

“Gross-Up Payment” means the additional amount to be

paid by the Company under this Agreement, as determined by paragraph (b) of

this section.

 

“Payment” means any payment or benefit received or to

be received by or on behalf of the Executive pursuant to the terms of this

Agreement or received or to be received by or on behalf of the Executive

pursuant to any plan or arrangement or other agreement with the Company (or any

affiliate of the Company pursuant to the provisions of Code Section

280G(d)(5)).

 

“Tax Counsel” means the tax counsel selected by the

Company and reasonably acceptable to the Executive.

 

(b)                                 AMOUNT.

 

In the event that any Payment is (or is determined by

Tax Counsel to be) subject to the Excise Tax, the Company shall pay to or on

behalf of the Executive at the time specified in paragraph (c) of this section,

a Gross-Up Payment determined such that the net amount retained by the

Executive, after deduction of (i) the Excise Tax on all Payments, and (ii) any

federal, state and local income tax and Excise Tax upon the Gross-Up Payments

provided for by this paragraph (b), and (iii) any interest, penalties or

additions to tax payable by the Executive with respect thereto, shall be equal

to the total present value (determined at a discount rate of 7% compounded

annually) of all of the Payments at the time such Payments are to be made.  For purposes of determining whether any of

the Payments will be subject to the Excise Tax and the amount of such Excise

Tax, (i) (I) the total amount of the Payments shall be treated as “Parachute

Payments” within the meaning of Code Section 280G(b)(2), and (II) all “Excess

Parachute Payments” within the meaning of Code Section 280G(b)(1) shall be

treated as subject to the Excise Tax, except to the extent that, in the opinion

of Tax Counsel, a Payment (in whole or in part) does not constitute a

“Parachute Payment” within the meaning of Code Section 280G(b)(2), or such

“Excess Parachute Payments” (in whole or in part) are not subject to the Excise

Tax, (ii) the amount of the Payments that shall be treated as subject to the

Excise Tax shall be equal to the lesser of (I) the total amount of the Payments

or (II) the amount of “Excess Parachute Payments” within the meaning of Code

Section 280G(b)(1) (after applying clause (i) hereof), and (iii) the value of

any non-cash benefits or any deferred payment or benefit shall be determined by

Tax Counsel in accordance with the principles of Code Sections 280G(d)(3) and

(4).  For purposes of determining the

amount of the Gross-Up Payment, the Executive shall be deemed to pay federal

income tax at the highest marginal rate of federal income taxation applicable

to individuals in the calendar year in which the Gross-Up Payment is to be made

and state and local income taxes at the highest marginal rates of taxation

applicable to individuals as are in effect in the state and locality of his or

her residence in the calendar year in which the Gross-Up Payment is to be made,

net of the maximum reduction in federal income taxes that can be obtained from

deduction of such state and local taxes, taking into account any limitations

applicable to individuals subject to federal income tax at the highest marginal

rate.

 

10

 

(c)                                  PAYMENT.

 

The Gross-Up Payments provided for in paragraph (b) of

this section shall be made upon the earlier of (i) the payment to the Executive

of any Payment or (ii) the imposition upon or payment by the Executive of any

Excise Tax.  Notwithstanding the foregoing,

to the extent that the Company or Tax Counsel determines that the Excise Tax or

any portion of any Gross-Up Payment is required to be withheld from the

compensation of the Executive and to be deposited with the applicable federal,

state and local tax authorities, the Company shall increase the amount of the

Executive’s compensation by the required amount of such withholding, and then

shall withhold and pay all such required withholding taxes to the appropriate

tax authorities, and upon doing so shall be deemed to have met the payment

requirements of this paragraph. For purposes of this section, if anyone other

than the Executive is subjected to the Excise Tax with respect to any Payments,

such person shall be entitled to the same Gross-Up Payments with respect to

such Payment that the Executive would have been entitled to under this section.

 

(d)                                 ADJUSTMENT.

 

If it is established pursuant to a final determination

of a court or an Internal Revenue Service proceeding or the opinion of Tax

Counsel that the Excise Tax is less than the amount taken into account under

paragraph (b) of this section, the Executive (or other payee, as the case may

be) shall repay to the Company within five days of his or her receipt of notice

of such final determination or opinion the portion of the Gross-Up Payment

attributable to such reduction (plus the portion of the Gross-Up Payment

attributable to the Excise Tax and federal, state and local income tax imposed

on the Gross-Up Payment being repaid by him or her if such repayment results in

a reduction in Excise Tax or a federal, state and local income tax deduction)

plus any interest received by him or her on the amount of such repayment.  If it is established pursuant to a final

determination of a court or an Internal Revenue Service proceeding or the

opinion of Tax Counsel that the Excise Tax exceeds the amount taken into

account under paragraph (b) of this section (including by reason of any payment

the existence or amount of which cannot be determined at the time of the Gross-Up

Payment), the Company shall make an additional Gross-Up Payment in respect of

such excess within five days of the Company’s receipt of notice of such final

determination or opinion.

 

 

IN WITNESS WHEREOF, the Executive has hereunto set the

Executive’s hand and, pursuant to the authorization of its Board, the Company

has caused this Agreement to be executed in its name on its behalf, all as of

the day and year first above written.

 

	

   

  	

  HPSC, INC.

  
	

   

  
	

   

  
	

   

  	

  By: 

  	

  /s/  J. Kermit Birchfield

  
	

   

  	

  J. Kermit

  Birchfield

  
	

   

  	

  Chairman of the

  Compensation Committee 

  
	

   

  	

  of the Board of

  Directors

  
	

   

  
	

   

  	

  /s/ John W.

  Everets

  
	

   

  	

  EXECUTIVE

  

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]