Document:

exv10w1

 

Exhibit 10.1

June 15, 2007

Robert E. Gallahue, Jr.

19 Kara Drive

North Andover, MA 01845

     Re: Separation Agreement and General Release

Dear Bob:

     We have discussed and agreed upon the terms of your separation from Molecular Insight
Pharmaceuticals, Inc. (“Company”), and I want to set forth our understanding in this Agreement.

     1. You employment with the Company was terminated effective April 11, 2007 (the “Termination
Date”) per your voluntary resignation. You acknowledge that you have been paid all compensation
for services rendered through the last pay period following the Termination Date, including any
accrued and unused vacation time.

     2. In exchange for your promises below, the Company agrees to make a payment to you in the
amount of One Hundred Thousand Dollars ($100,000.00), less taxes and applicable withholdings. This
payment will be delivered to you on or about ten (10) business days following the revocation period
set forth in Paragraph 11 below. In addition, you will have 19,792 stock options accelerated and
vested immediately from your July 1, 2005 Incentive Stock Option Agreement (“Stock Option
Agreement”). The exercise period for these shares and all vested shares has been extended until
February 28, 2009. You acknowledge that these benefits do not constitute compensation for services
rendered in connection with your employment with the Company, and that you would not otherwise be
entitled to such benefits but for your execution of this Agreement. In total, inclusive of the
19,792 noted above, you will have 89,583 vested shares and your exercise period for these shares is
until February 28, 2009.

     3. In addition to the above benefits, you will receive the Severance Package set forth in your
July 1, 2005 Employment Agreement (as amended) (“Employment Agreement”) in accordance will those
terms. Additionally, per the amendment authorized during the February 13, 2007 Board of Directors
meeting, you are to receive option acceleration on the remaining 56,250 upon a “Change of Control”
(as defined in your Employment Agreement) during the period in which you are receiving severance
pay pursuant to the Severance Package.

     4. You acknowledge and agree that you are not and shall not be entitled to any further
benefits from the Company other than those described above and as otherwise may be provided in your
Stock Option Agreement.

     5. In exchange for the benefits described in Paragraph 2 above, you agree to release, forever
discharge and hold harmless the Company, any subsidiaries, and any affiliated entities, past and
present and each of them, as well as their trustees, directors, officers, agents, and

 

 

Robert E. Gallahue, Jr.

Page 2

employees
(the “Releasees”), from any and all claims, demands, or causes of action of whatever
nature whether known or unknown, including but not limited to any claim in contract or tort, or any
claim under common law or any state or federal statute, including but not limited to the Age
Discrimination in Employment Act (including the Older Workers Benefit Protection Act) (29 U.S.C. §
621 et seq.), Title VII of the Civil Rights Act of 1964 (as amended) (42 U.S.C. § 2000e et seq.),
and the Massachusetts Fair Employment Practices Act (G.L. c. 151B), arising out of your employment
or the cessation of your employment, which you may have against any and all of the Releasees by
reason of any events which have occurred up to and including the date of your acceptance of this
Agreement. This release does not include the above referenced Severance Package in your Employment
Agreement and does not include rights available under your Stock Option Agreement. Nothing in this
paragraph, however, precludes you from pursuing any claims necessary to enforce the terms of this
Agreement.

     6. You acknowledge and agree that you have complied with an/or remain subject to the
representations and obligations set forth in Paragraphs 8, 9, 10, 11, 12, 16, 17, 18, 19, 20, 21
and 25 of your Employment Agreement, including, but not limited to, the Non-Disclosure of
Proprietary or Confidential Information and Covenant Not to Compete and Non-Solicitation
provisions.

     7. Unless required by law, you agree that you will not disclose this Agreement or any of its
terms or provisions, directly or by implication, except to members of your immediate family and to
your financial/legal and tax advisors, and then only on condition that they agree not to further
disclose this Agreement or any of its terms or provisions to others. You similar agree that if
disclosure of this Agreement is sought by subpoena or any other legal means, you shall immediately
notify the Company so that it may respond as it deems appropriate.

     8. You agree that you will not disparage the Company or any of the people or organizations
connected with it; and that you will not otherwise do or say anything that could disrupt the good
morale of the employees of the Company or otherwise harm its interests or reputation. The Company
similarly agrees not to disparage you.

     9. This letter contains the entire agreement between you and the Company and replaces all
prior and contemporaneous agreements, communications and understandings, whether written or oral,
with respect to your employment and its termination and all related matters, except as otherwise
set forth herein. This Agreement may only be modified, terminated or otherwise changed by a
written document signed by you and an authorized officer of the Company. Should any provision of
this Agreement be determined by any court to be illegal or otherwise invalid, the validity of the
remaining parts, terms or provisions shall not be affected thereby and the illegal or invalid
provision shall be deemed not to be part of this Agreement.

     10. This Agreement will be governed by and interpreted in accordance with the laws of the
Commonwealth of Massachusetts, without regard to conflict of law principles. The exclusive forum
for the resolution of any disputes regarding this Agreement shall be in the courts of the
Commonwealth of Massachusetts, and you expressly agree to be subject to the jurisdiction of such
courts.

 

 

Robert E. Gallahue, Jr.

Page 3

     11. You may take up to twenty-one (21) days from the receipt of this Agreement in which to
consider executing it, although you may execute it at any time within those twenty-one
(21) days. You may also revoke this Agreement within seven (7) days after signing it, and the
Agreement shall not be effective or enforceable until the expiration of this seven-day period. In
the event you elect to revoke this Agreement, you are required to notify John E. McCray, Chief
Operating Officer, in writing, of such revocation within the seven-day period.

     12. You acknowledge that before entering into this Agreement, you have had the opportunity to
consult with an attorney or other advisor of you choice and that you have been advised to do so.
You further acknowledge that you have entered into this Agreement of your own free will, and that
no promises or representations have been made to you by any person to induce you to enter into this
Agreement other than the express terms set forth herein. You further acknowledge that you have read
this Agreement and understand all of its terms, including the waiver and release of claims set
forth herein.

     If the terms of this Agreement are acceptable to you, please sign, date and return it to my
attention. If you have any questions, please do not hesitate to contact me.

Sincerely,

/s/ John E. McCray

John E. McCray

Chief Operating Officer

Accepted and agreed:

	 	 	 	 	 	 	 	 	 
	Signature:

	 	/s/ Robert E. Gallahue  

Robert
E. Gallahue, Jr.
	 	     Date: 
	 	6/18/07exv10w1

 

Exhibit 10.1

CONSULTING SERVICES AGREEMENT

     This Agreement is made as of the 28th day of June 2007 by and between Paul V. Cusick, Jr.
(hereinafter the “Consultant”) and Century Bancorp, Inc. (the “Company”) and its subsidiary,
Century Bank and Trust Company (the “Bank”) (hereinafter collectively referred to as “Century”).

     WHEREAS, Century desires to engage Consultant as an independent contractor to provide services
to Century based on Consultant’s long and extensive experience and knowledge of Century and the
banking industry;

     WHEREAS, Consultant desires, in connection with retirement effective the date hereof from his
positions as Vice President and Treasurer of the Company and as Executive Vice President, Chief
Financial Officer and Treasurer of the Bank and from any and all other positions he may hold at
Century or any of its affiliates, to accept such engagement on the terms and conditions set forth
herein;

     NOW, THEREFORE, in consideration of the promises and other valuable consideration and of the
mutual covenants and agreement contained herein the parties hereby agree as follows:

     1.    CONSULTING SERVICES.    Consultant confirms his resignation from all offices and positions
with the Company, the Bank or any affiliate and agrees to provide services as an independent
contractor. Services as an independent consultant shall be comprised of general consulting
services as requested by the board of directors of the Company and its Co-Chief Executive Officers,
which services may involve advice on strategic planning and operational management, assisting
Century in connection with business development efforts and clients, participation in public
relations and community outreach efforts and such other duties as may be requested by the Board of
Directors of the Company and agreed to by the Consultant.

     2.    TERM.    Consultant shall commence services on the date hereof and shall continue such
services until August 1, 2009.

     3.    COMPENSATION; EXPENSES.    The Company shall pay the Consultant an annual contract fee of
$85,000 per year beginning on the date hereof, such fee to be payable monthly throughout the year
on the last day of each month. In addition, the Company shall reimburse Consultant for all
reasonable business expenses.

     4.    MAINTENANCE OF OFFICE.    During the term of this Agreement, the Company shall continue to
provide and make available to the Consultant office facilities, together with the services of an
executive secretary.

     5.    OTHER ACTIVITIES.    Because Consultant will have access to certain confidential information
of Century during the term of this consulting engagement, Consultant agrees that he will not engage
in any competing business activities without specific prior written consent of the Company.
Consultant may conduct other business that does not directly or indirectly compete with that of
Century.

 

 

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     6.    CONFIDENTIALITY.    Consultant shall treat as confidential and shall not divulge, furnish or
make known to or accessible to, or use for his own benefit or for the benefit of anyone other than
Century, any: customer list, customer names, customer financial information, marketing data and
information, pricing information, sales policies, commission structures or any other business
information (hereinafter “Proprietary Information”). Consultant agrees that upon termination of
this Agreement, he will not take with him or copy, damage or destroy any Proprietary Information,
including but not limited to any book, customer list or information, supplier list or information,
record, document, file, data or object relating in any way to the work done or to be done by
Century or its affiliates without prior written consent from the Company. (For the purposes of
this Agreement, “Proprietary Information” shall not include information known to Consultant prior
to any disclosure by Century pursuant hereto, information that becomes available to the Consultant
on a non-confidential basis from a third party unrelated to Century not under a confidentiality
constraint to Century and information which is publicly available, other than as a result of
disclosure by Consultant.)

     7.    SPECIFIC PERFORMANCE.    The Consultant acknowledges that the harm to Century will be
irreparable in the event of a violation of the provisions of paragraphs 5 and 6 hereof and that in
such event the damages Century would sustain would be impossible to ascertain in advance.
Therefore, it is agreed that if Consultant should breach the obligations of referenced paragraphs
then the Company shall be entitled to seek injunctive relief and monetary damages including an
award of reasonable attorney’s fees.

     8.    CERTAIN TERMINATION EVENTS.    The Agreement may be terminated by the mutual agreement of the
Company and the Consultant. If Consultant is unable to continue to fully perform the services
contemplated under this Agreement due to his illness, death, disability or other incapacity, the
Company shall be entitled to cease making payments under this Agreement.

     9.    INDEPENDENT CONTRACTOR STATUS.    Consultant’s relationship to the Company under this
Agreement shall be that of an independent contractor and not an employee for any purpose whatsoever
of Century. As an independent contractor, Consultant shall have the sole authority to control and
direct the performance of his services, subject to the performance criteria outlined by the
Company. All services shall be subject to the Company’s general rights of review to assure their
satisfactory completion. Consultant agrees that no income, Social Security or other tax or amount
will be withheld or accrued by Century for Consultant. Consultant shall be fully responsible for
Consultant’s own taxes, including self-employment taxes.

     10.   MEDIATION AND ARBITRATION.    If any dispute arises under this Agreement, the Consultant and
the Company shall negotiate in good faith to settle such dispute. If the parties cannot resolve
such dispute themselves, then either party may submit the dispute to mediation by a mediator
approved by both parties. If the parties cannot agree to any mediator, or if either party does not
wish to abide by any decision of the mediator, they shall submit the dispute to arbitration by any
mutually acceptable arbitrator, or the American Arbitration Association (AAA). If the AAA is
selected, the arbitration shall take place under the auspices of the Boston, Massachusetts branch.
The costs of arbitration proceeding shall be borne according to the decision of the arbitrator, who
may apportion costs equally, or in accordance with any

 

 

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finding of fault or lack of good faith of either party. The arbitrator’s award shall be
non-appealable and enforceable in any court of competent jurisdiction.

     11.    INDEMNIFICATION.    The Consultant agrees to indemnify and hold harmless Century and their
respective directors, officers, employees and agents from and against any losses, claims, damages,
expenses and liabilities, joint or several, (including reasonable attorney’s fees), due to actions,
inactions or claims arising out of, or directly or indirectly related to, the Consultant’s
performance of the services contemplated under this Agreement, the breach of the confidentiality
provisions of this Agreement or Consultant’s failure to comply with any applicable law or
regulation.

     12.    INDEMNIFICATION BY CENTURY.    The Company will indemnify and hold harmless Consultant
against any and all third-party losses, claims, damages, liabilities, actions, costs or expenses to
which he may become subject (including any legal or other expenses reasonably incurred by or in
connection with investigating any claim against him and defending any action and any amounts paid
in settlement or compromise, provided the Company shall have given its prior written approval of
such expenses, settlement or compromise), insofar as such losses, claims, damages, liability
actions, costs or expenses arise out of or are based upon; (i) the failure of Century or its
employees to comply with applicable laws, rules and regulations in connection with this Agreement;
(ii) personal injury, death or property damage occurring on the premises of Century, including any
space used by Consultant; or (iii) the negligence or intentional conduct of Century or its
employees.

     The foregoing indemnification is in addition to indemnification from Century to which
Consultant is entitled in his prior capacities at Century.

     13.    NOTICES.    All notices, requests, demands, and other communications shall be deemed to have
been given if the same shall be in writing and shall be delivered personally or sent by registered
or certified mail, postage prepaid, and addressed as set forth below:

	 	 	 	 	 	 	 
	     A.

	 	If to Consultant:
	 	B.
	 	If to Century:
	 
	 	 	 	 	 	 
	 

	 	Paul V. Cusick
	 	 	 	Barry R. Sloane and Jonathan G. Sloane
	 

	 	66 Edmunds Road
	 	 	 	Co-Chief Executive Officer
	 

	 	Wellesley, MA 02481
	 	 	 	Century Bancorp, Inc.
	 

	 	 	 	 	 	400 Mystic Avenue
	 

	 	 	 	 	 	Medford, Massachusetts 02155

     14.    MISCELLANEOUS.    This Agreement shall be governed by and interpreted under and according to
the laws of the Commonwealth of Massachusetts. This Agreement may not be amended or changed, unless
such amendment or change is made in writing and approved by both the Consultant and the Company.
This Agreement supersedes any and all prior oral agreements or understandings relating to this
matter between the Company and the Consultant, including but not limited to the Letter Agreement.

 

 

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     IN WITNESS WHEREOF, the parties hereto have executed this Consulting Services Agreement as of
the day and year first above written and in duplicate counterparts each of which shall be deemed to
be an original, but both of which together shall constitute one and the same instrument.

	 	 	 	 	 
	 	PAUL V. CUSICK

 	 
	 	/s/ Paul V. Cusick
 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	CENTURY BANCORP, INC.

 	 
	 	By:  	/s/ Jonathan G. Sloane
 	 
	 	Name:  	Jonathan G. Sloane 	 
	 	Title:  	Co-President and Co-CEO

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