Document:

exv10w1

 

EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”) is made and entered into effective as of August 20,
2006 by and between DIRT MotorSports, Inc., a Delaware corporation (“Employer”), and Thomas Deery,
an individual residing at 30 Talaquah Blvd, Ormond Beach, FL 32174 (“Employee”).

WITNESSETH:

     WHEREAS, Employer desires to employ Employee as provided herein, and Employee desires to
accept such employment pursuant to the terms of this Agreement; and

     WHEREAS, Employee shall, as an employee of Employer, have access to confidential information
with respect to Employer and its affiliates.

     NOW THEREFORE, for and in consideration of the mutual covenants and agreements contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

     1. Employment. Employer hereby employs Employee, and Employee hereby accepts
employment with Employer, upon the terms and conditions hereinafter set forth.

     2. Duties. Employee shall serve Employer as Acting Chief Executive Officer (CEO) and
President of the Corporation, reporting directly to the Board of Directors; provided, however, in
the event Employer employs a Chief Executive Officer, Employee shall report to the Chief Executive
Officer during the remainder of the Term of the Term of this Agreement. Employee shall be based in
Ormond Beach, Florida, until such time the corporate offices are moved from Norman Oklahoma. At
the request of the Company, the Employee will establish a residence in the selected city of the
corporate offices. Employee may maintain Florida residency at his sole discretion. Employer shall
pay all reasonable moving expenses of Employee associated with such move if such relocation is
determined to be in the best interest of Employer.

     3. Term. Unless earlier terminated pursuant to Section 6, below, this Agreement shall
commence as of the date hereof (“Commencement Date”) and shall end on Aug 19, 2008 (“Initial
Term”); provided, however, that this Agreement shall be renewed for an additional one-year period
at the end of the Initial Term (“Renewal Term”), unless either party gives written notice of such
party’s termination to the other party at least sixty (60) days prior to the end of the applicable
term of this Agreement. As used herein, “Term” shall mean the Initial Term and any additional
Renewal Terms.

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     4. Compensation. As compensation for services rendered under this Agreement, during
the Term, Employee shall be entitled to receive the compensation as provided in Exhibit A
attached hereto.

     5. Expense Reimbursement. Employer shall reimburse Employee for all reasonable and
necessary out-of-pocket travel and other expenses incurred by Employee in performance of his Duties
as required under this Agreement. Employee shall submit a statement of expenses and supporting
documentation (“Expense Reimbursement”) at the end of each calendar month during the Term of this
Agreement. Employer shall reimburse Employee for such expenses within thirty (30) days of
Employee’s submission of his Expense Reimbursement.

     6. Confidentiality.

          (a) Acknowledgment of Proprietary Interest. Employee recognizes the proprietary
interest of Employer and its affiliates in any Trade Secrets (as hereinafter defined) of Employer
and its affiliates. Employee acknowledges and agrees that any and all Trade Secrets learned by
Employee during the negotiation and Term of this Agreement shall be and is the property of Employer
and its affiliates. Employer hereby acknowledges that Employee brings Motorsports and sports
industry experience and knowledge of plans, proposals, concepts, ideas and materials relating to
marketing and sales programs (“Employee Trade Secrets”). Employer hereby acknowledges that such
Employee Trade Secrets are and shall be the property of the Employee and shall not be considered
Employer’s Trade Secrets. Employee further acknowledges and understands that his unauthorized
disclosure of any Trade Secrets may result in irreparable injury and damage to Employer and its
affiliates. As used herein, “Trade Secrets” means all confidential and proprietary information of
Employer and its affiliates, now owned or hereafter acquired, including, without limitation,
information derived from reports, investigations, experiments, research, work in progress,
drawings, designs, plans, proposals, codes, marketing and sales programs, client lists, client
mailing lists, financial projections, cost summaries, pricing formula, and all other concepts,
ideas, materials, or information prepared or performed for or by Employer or its affiliates and
information related to the business, products or sales of Employer or its affiliates, or any of
their respective customers, provided, however, that information known to Employee prior to the Term
of this Agreement and information which is in the public domain or which is otherwise publicly
available shall not constitute Trade Secrets for the purposes of this Agreement.

          (b) Covenant Not-to-Divulge Trade Secrets. Employee acknowledges and agrees that
Employer and its affiliates are entitled to prevent the disclosure of Trade Secrets. As a portion
of the consideration for the employment of Employee and for the compensation being paid to Employee
by Employer, Employee agrees at all times during the Term and thereafter, for so long as the same
remains a Trade Secret, to hold in strict confidence and not to use, disclose or allow to be
disclosed to any person, firm or corporation, other than to persons engaged by Employer or its
affiliates, except to further the business of Employer and its affiliates, and not to use except in
the

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pursuit of the business of Employer and its affiliates, the Trade Secrets, without the prior
written consent of Employer.

          (c) Return of Materials at Termination. In the event of any termination or cessation
of his employment with Employer, for any reason whatsoever, Employee will promptly deliver to
Employer all documents, data and other tangible information pertaining to Trade Secrets. Employee
shall not retain any documents or other information, or any reproduction or excerpt thereof,
containing or pertaining to any Trade Secrets.

          (d) Competition During Employment. Employee agrees that during the Term, he will not,
directly or indirectly: (i) compete with Employer or its affiliates by engaging in the business of
the promotion or sanctioning of motorsports racing on oval dirt surfaces (the “Business”); or (ii)
act as an officer, director, employee, consultant, shareholder, equity holder, advisor or agent of
any person or entity which is engaged in the Business in competition with Employer; provided,
however, that this Section 5(d) shall not prohibit Employee or any of his affiliates from
purchasing or holding an aggregate equity interest of up to 1% in any publicly-traded company which
is in competition with Employer. Furthermore, Employee agrees that during the Term, he will not
plan or undertake to form or establish an organization or business engaged in the Business.

          Employer agrees and acknowledges that Employee has developed a significant insurance business
representing motorsports clients. Employee will contract or subcontract the business to a third
party; however, Employee will have occasional contact with current and former customers. Employee
will not solicit customers or be active in sales or service of contracted clients.

          (e) Competition Following Employment. Employee agrees that for a period of two (2)
years after the termination or cessation of his employment from Employer under Section 7 (a), (c),
(d) or (f) of this Agreement, he will not directly or indirectly: (i) compete with Employer or its
affiliates by engaging in the Business as defined herein; (ii) act as an officer, director,
employee, consultant, equity holder, lender, advisor or agent of any person or entity which is in
engaged in the Business; provided, however, that this Section 6(e) shall not prohibit Employee or
any of his affiliates from purchasing or holding an aggregate equity interest of up to 1% in any
publicly-traded company which is in competition with Employer.

     7. Termination. Employee’s employment under this Agreement shall terminate upon the
occurrence of any of the following events (each, a “Termination Event”):

 (a) The expiration of the Term;

 (b) Employee’s death;

 (c) Employee’s Excessive Absence (as hereinafter defined);

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 (d) Written notice to Employee from Employer of termination for Just Cause (as
hereinafter defined);

 (e) Written notice to Employee from Employer for termination for any reason other than
subparts (a), (b), (c), or (d);

 (f) Written notice to Employer from Employee of termination for any
reason other than Good Reason (as hereinafter defined); or

 (g) Written notice to Employer from Employee of termination for
Good Reason.

     In the event of the termination of Employee’s employment pursuant to (a), (c),(d) or (f), then
this Agreement shall terminate without further obligations to Employee other than the payment of
Employee’s Annual Salary and Incentive Compensation, as further described in Exhibit A, earned by
Employee as of, and payable for the period prior to, the date of the Termination Event (“Accrued
Compensation”) and the timely payment of benefits Employee shall be entitled to receive after the
Termination Event under such plans, programs, practices and policies as are applicable at the time
of the Termination Event (“Other Benefits”).

     In the event of the termination of Employee’s employment pursuant to (b) above, Employee shall
be entitled to receive all Accrued Compensation and Other Benefits, and all options, restricted
shares, and other incentive awards held by Employee which are unvested as of the date of such
termination shall vest in full, and all restrictions thereon shall lapse in full.

     In the event of the termination of Employee’s employment pursuant to (e) or (g) above,
Employee shall be entitled to receive all Accrued Compensation and Other Benefits, shall continue
to receive the Annual Salary and Incentive Compensation, and Employer shall continue benefits to
Employee and Employee’s eligible dependents at least equal to those which would have been provided
to them in accordance with Employer’s Welfare Plans provided for in Exhibit A or, if more favorable
to Employee, as in effect generally at any time thereafter with respect to other Peer Executives
and their eligible dependents, for the remainder of the Term, or for a period of six (6) months
after the Termination Event, whichever is longer, as if no termination had occurred. In addition,
all options, restricted shares, and other incentive awards held by Employee which are unvested as
of the date of such termination shall vest in full, and all restrictions thereon shall lapse in
full. Notwithstanding anything to the contrary in this Agreement, the provisions of Section 7 above
shall survive any termination, for whatever reason, of Employee’s employment under this Agreement.
For purposes of this Section 7 the following terms have the following meanings:

     “Good Reason” shall mean: (a) without the written consent of Employee, the assignment to
Employee of any duties inconsistent in any material respect with Employee’s position (including
status, offices, and titles) authority, duties or

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responsibilities as in effect on the Effective Date, or any other action by Employer which
results in a diminution in such position, authority, duties or responsibilities, excluding for this
purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is
remedied by Employer promptly after receipt of notice thereof given by Employee; (b) a reduction by
Employer of Employee’s Annual Salary as in effect on the Effective Date or as the same may be
increased from time to time; (c) any breach by Employer of any of the material terms of, or the
failure to perform any material covenant contained in this Agreement, including, but not limited
to, the failure by Employer to fulfill all of its obligations as set forth on Exhibit A hereto, and
following written notice thereof from Employee to Employer, Employer does not cure such breach or
failure within thirty (30) days thereafter; provided, however, that Employer will not be entitled
to cure any such breach or failure more than one time in any consecutive three month period; (d)
Employer’s requiring Employee, without his consent, to be based at, or to regularly work from, any
office or location other than in the Ormond Beach, Florida region, or such other location
designated by the Board of Directors, following consultation with Employee; or (e) Employee’s
termination for any reason within ninety (90) days following a Change in Control of Employer as
defined in Exhibit A. Employee’s continued employment shall not constitute consent to, or waiver
of rights with respect to, any circumstance constituting Good Reason hereunder.

     “Excessive Absence” of Employee shall mean his inability to perform his essential duties under
this Agreement due to unexcused absence (other than any failure resulting from Employee’s
incapacity due to physical or mental illness or injury, and specifically excluding any failure by
Employee, after reasonable efforts, to meet performance expectations) for a continuous period of 60
days or for 120 days out of a continuous period of 240 days.

     “Just Cause” shall mean (a) the willful and continued failure of Employee to substantially
perform his Duties under this Agreement (other than any failure resulting from Employee’s
incapacity due to physical or mental illness, and specifically excluding any failure by Employee,
after reasonable efforts, to meet performance expectations), provided that Employee does not cure
such failure within thirty (30) days following written notice thereof from Employer setting forth
the specific grounds upon which Employer maintains a failure to perform has arisen under this
subsection; (b) the material breach by Employee of any of the terms of this Agreement, or the
willful and continued failure to perform any material covenant contained in this Agreement,
provided that Employee does not cure such breach within thirty (30) days following written notice
from Employer setting forth the specific grounds upon which Employer maintains a breach or failure
to perform has occurred; or (c) Employee’s conviction of felony under state or federal law
involving dishonestly, fraud, or malfeasance in the performance of his Duties. For the purposes of
this provision, no act or failure to act on the part of Employee shall be considered “willful”
unless it is done, or omitted to be done, by Employee in bad faith or without the reasonable belief
that Employee’s action or omission was in the best interest of Employer. Any act or omission based
upon authority given pursuant to a resolution duly adopted by the Board of Directors or based

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upon the advice of counsel for the Employer shall be conclusively determined to have been
done, or omitted to be done, by Employee in good faith and in the best interest of Employer. The
cessation of employment of Employee shall not be deemed to be for Just Cause unless and until there
shall have been delivered to Employee a copy of a resolution duly adopted by the affirmative vote
of not less than a majority of the entire membership of the Board of the Company (excluding
Employee, if Employee is a member of the Board), finding that, in the good faith opinion of such
Board, Employee is guilty of the conduct described above, and specifying the particulars thereof in
detail. Such finding shall be effective to terminate Employee’s employment for Just Cause only if
Employee was provided reasonable notice of the proposed action and was given an opportunity,
together with counsel, to be heard by the Board.

     8. Remedies. Employee recognizes and acknowledges that in the event of any default
in, or breach of any of, the terms, conditions or provisions of this Agreement (either actual or
threatened) by Employee, Employer’s and its affiliates remedies at law shall be inadequate.
Accordingly, Employee agrees that in such event, Employer and its affiliates shall have the right
of specific performance and/or injunctive relief in addition to any and all other remedies and
rights at law, in equity or provided herein, and such rights and remedies shall be cumulative.

     9. Arbitration. Any claim or dispute arising under this Agreement shall be subject to
arbitration, and prior to commencing any court action, the parties agree that they shall arbitrate
all controversies. The arbitration shall be conducted in the corporate headquarters state, in
accordance with the Employment Dispute Rules of the American Arbitration Association (“AAA”)
(though the parties may choose an arbitrator outside the AAA) and the Federal Arbitration Act, 9
U.S.C. §1, et. seq. The arbitrator shall be authorized to award both liquidated and actual
damages, in addition to injunctive relief, but not punitive damages. The arbitrator(s) may also
award attorney’s fees and costs, without regard to any restriction on the amount of such award
under the state of corporate headquarters or other applicable law. Such an award shall be binding
and conclusive upon the parties hereto, subject to 9 U.S.C. §10. Each party shall have the right
to have the award made the judgment of a court of competent jurisdiction.

     10. Acknowledgments. Employer and Employee acknowledge and recognize that the
enforcement of any of the provisions set forth in Section 6 above will not interfere with
Employer’s Business or Employee’s ability to pursue a proper livelihood. Employer and Employee
recognize and agree that the enforcement of this Agreement is necessary to ensure the preservation
and continuity of the business and good will of Employer and its affiliates and Employee’s
livelihood.

     11. Notices. Any notices, consents, demands, requests, approvals and other
communications to be given under this Agreement by either party to the other shall be deemed to
have been duly given if given in writing and personally delivered or sent by courier service,
overnight delivery service or by registered or certified mail, postage prepaid with return receipt
requested, as follows:

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	 	If to Employer:
	 	DIRT MotorSports, Inc.
	 	 
	 

	 	 	 	3600 West Main St	 	 
	 

	 	 	 	Norman, OK 73072	 	 
	 

	 	 	 	Attn: Chief Executive Officer	 	 
	 

	 	 	 	Fax: (405) 360-5354	 	 
	 
	 	 	 	 	 	 
	 

	 	If to Employee:
	 	Thomas Deery	 	 
	 

	 	 	 	30 Talaquah Blvd.	 	 
	 

	 	 	 	Ormond Beach, Florida 32714	 	 

     Notices delivered personally or by courier service or overnight delivery shall be deemed
communicated as of actual receipt and mailed notices shall be deemed communicated as of three days
after the date of mailing.

     12. Entire Agreement. This Agreement contains the entire agreement of the parties
hereto with respect to the subject matter hereof and supersedes all prior agreements and
understandings, oral or written between the parties hereto with respect to the subject matter
hereof. No modification or amendment of any of the terms, conditions or provisions herein may be
made otherwise than by written agreement signed by the parties hereto.

     13. Governing Law and Venue. THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE INTERPRETED, CONSTRUED, AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,
WITHOUT REGARD TO ITS CHOICE OF LAW PRINCIPLES.

     14. Parties Bound. This Agreement and the rights and obligations hereunder shall be
binding upon and inure to the benefit of Employer and Employee, and their respective heirs,
personal representatives, successors and assigns. Employer shall have the right to assign this
Agreement to any affiliate or to its successors or assigns. The terms “successors” and “assigns”
shall include any person, corporation, partnership or other entity that buys all or substantially
all of Employer’s assets or all of its stock, or with which Employer merges or consolidates. The
rights, duties or benefits to Employee hereunder are personal to him, and no such right or benefit
may be assigned by Employee. The parties hereto acknowledge and agree that Employer’s affiliates
are third-party beneficiaries of the covenants and agreements of Employee set forth in Section 5
above.

     15. Estate. If Employee dies prior to the payment of all sums owed, or to be owed, to
Employee pursuant to Section 4 above, then such sums, as they become due, shall be paid to
Employee’s estate.

     16. Enforceability. If, for any reason, any provision contained in this Agreement
should be held invalid in part by a court of competent jurisdiction, then it is the intent of each
of the parties hereto that the balance of this Agreement be enforced

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to the fullest extent permitted by applicable law. Accordingly, should a court of competent
jurisdiction determine that the scope of any covenant is too broad to be enforced as written, it is
the intent of each of the parties that the court should reform such covenant to such narrower scope
as it determines enforceable.

     17. Waiver of Breach. The waiver by any party hereto of a breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent breach by any party.

     18. Captions. The captions in this Agreement are for convenience of reference only
and shall not limit or otherwise affect any of the terms or provisions hereof.

     19. Costs. If any action at law or in equity is necessary to enforce or interpret the
terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees,
costs and necessary disbursements in addition to any other relief to which he or it may be
entitled.

     20. Affiliate. An “affiliate” of any party hereto shall mean any person controlling,
controlled by or under common control with such party.

     21. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which shall constitute one and the same instrument,
but only one of which need be produced.

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

	 	 	 	 	 	 	 	 	 	 	 
	EMPLOYER
	 	 	 	EMPLOYEE
	 	 
	DIRT MotorSports, Inc.	 	 	 	Thomas Deery	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	          /s/ Lyle Miller
	 	 	 	By:
	 	          /s/ Tom Deery	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Lyle Miller
	 	 	 	 	 	            Thomas Deery	 	 
	 

	 	Title: Director	 	 	 	 	 	 	 	 

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EXHIBIT A

	1.	 	Annual Salary: During the Term, Employer shall pay to Employee a base salary at the
rate of not less than ONE HUNDRED NINETY TWO THOUSAND DOLLARS ($192,000) per year (“Annual
Salary”), payable in equal monthly or more frequent installments as are customary under
Employer’s payroll practices from time to time. The Board of Directors or the Compensation
Committee of the Board of Directors of the Employer shall review Employee’s Annual Salary
annually and may increase, but not decrease, Employee’s Annual Salary from year to year;
provided, however, in the event Employer employs a Chief Executive Officer, Employee’s Annual
Salary shall be ONE HUNDRED EIGHTY THOUSAND DOLLARS ($180,000) per year. The annual review of
Employee’s Annual Salary shall consider, among other things, Employee’s own performance and
the financial and operating performance of Employer.
	 
	2.	 	Formulaic Incentive Compensation: Employee shall be entitled to no less than fifteen
percent (15%) of the Executive Incentive Compensation Pool, as hereinafter described. The
Board of Directors, in conjunction with and under the advisement of Employer’s Executive
Management Team, shall create and ratify an Executive Incentive Compensation Plan .

	 	a.	 	Discretionary Incentive Compensation: All compensation
distributed through this portion of the compensation plan shall be solely at the
discretion of the Board Compensation Committee as deemed appropriate, except,
however, that the Board Compensation Committee shall review the Employee
eligibility for discretionary bonuses at least once a year being December 1 of each
year (“Discretionary Bonus Review”). Employee’s Discretionary Bonus Review shall
always be preceded by a formal review by the Board’s committee of Employee’s
overall performance for the period since the last review. The factors to be
considered are as follows:

	 	i.	 	Employee’s ability to execute against strategic
business and financial objectives
	 
	 	ii.	 	Leadership, work ethic, and the sum of intangible
contributions to the success of DIRT Motor Sports

	 	 	Employee shall be reviewed and awarded discretionary bonuses on an independent basis, apart
from other Officers in Employer, regardless of how closely other aspects of their
compensation may be tied. Discretionary bonuses may come in the form of cash, grants,
options, benefits, salary increases, or other mediums as deemed appropriate by the Board
Compensation Committee.
	 
	3.	 	Welfare Benefit Plans. During the Employment Period, Employee and Employee’s
eligible dependents shall be eligible for participation in, and shall

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	 	 	receive all benefits under, the welfare benefit plans, practices, policies and
programs provided by Employer and/or its affiliated companies (including,
without limitation, medical, prescription, dental, disability, employee life,
group life, accidental death and travel accident insurance plans and programs)
(“Welfare Plans”) to the extent applicable generally to Peer Executives. The
Welfare Plans shall include, but not be limited to, full medical and dental
coverage for Employee and Employee’s eligible dependents to be provided at
Employer’s expense. Employer also shall reimburse Employee for the cost of a
full and complete annual executive physical examination each year during the
Term of the Agreement.
	 
	4.	 	Term Life Insurance. Company will provide an
annual year-to-year term
life insurance product on
the life of the employee
for a death benefit not
less than 2 times annual
salary with the estate of
the employee as
beneficiary.
	 
	5.	 	Equipment: Employer shall provide Employee with office equipment, including but not
limited to a laptop computer, printer, and cellular phone/wireless PDA.
	 
	6.	 	Retirement: Employee shall be immediately eligible to participate in Employer
sponsored retirement plan as of the date of this Agreement.
	 
	7.	 	Vacation: Employee shall accrue 1.5 days of vacation per month of employment in
addition to traditional holidays, shut down periods and/or applicable sick/comp days.
Vacation shall be used during the term of the Agreement within three months of the calendar
year earned and the value of any unused accurred annual vacation time will not carryover
beyond that point in time. Employee has agreed that vacation time will not accumulate
according to the policies of the Employer Any unused days accrued during any calendar year
shall be paid to Employee upon the termination of this Agreement, for any reason, at
Employee’s Annual Salary rate effective immediately prior to the termination of this
Agreement.
	 
	8.	 	Stock Options/Restricted Stock: Employee agrees that any and all previous Restricted
Stock and/or Stock Option grants, discussed and/or negotiated,with the Board or any individual
Board member,documented or undocumented,are hereby replaced completely,and in their entirety,
by the Stock Option and Restricted Stock grants detailed below. Employee shall be entitled to
receive grants of stock options as may be determined by the Board of Director’s from time to
time in its sole discretion. No other Stock Option and/or Resticted Stock awards having been
granted the Employee, Employer here shall grant to Employee a five-year option to purchase
300,000 shares of the Employer’s common stock at an exercise price of $2.49 per share
(“Options”). Such Options shall become exercisable as follows: 100,000 upon the effective
date of this Agreement, 100,000 on the one year anniversary of this Agreement, 100,000 on the
two year anniversary of this Agreement. If the Employee is terminated or the Employment
Agreement is not renewed, for any reason, or if said Agreement

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otherwise expires, any of such Options which have not vested as of the date of such
termination shall become vested in full and immediately exercisable for a sixty (60) day
period after such termination (or, in the event of Employee’s death or Excessive Absence,
exercisable for a period of one year after such termination) and shall expire following such
sixty (60) day period (or one year period, as the case may be). Additionally, Employee shall
be issued 150,000 shares of restricted common stock (the “Restricted Shares”). Upon the
mutual agreement of the parties hereto, the Restricted Shares may be granted in the form of
restricted stock. The Restricted Shares shall cliff vest upon the occurrence of the one of
the following events, whichever occurs first:

a) A Change in Control of Employer, described as follows:

(i) any person within the meaning of Section 13(d) and 14(d) of the Securities
Exchange Act or 1934, as amended (the “Exchange Act”), other than the Employer
(including its subsidiaries, directors or executive officers) has become the
beneficial owner, within the meaning of Rule 13d-3 under the Exchange Act, of 50
percent or more of the combined voting power of Employer’s then outstanding common
stock or equivalent in voting power of any class or classes of Employer’s
outstanding securities ordinarily entitled to vote in elections of directors
(“voting securities”);

(ii) shares representing fifty (50%) percent or more of the combined voting power of
the Employer’s voting securities are purchased pursuant to a tender offer or
exchange offer (other than an offer by Employer or its subsidiaries or affiliates);

(iii) as a result of, or in connection with, any tender offer or exchange offer,
merger or other business combination, sale of assets or contested election, or any
combination of the foregoing transactions (a “Transaction”), the persons who were
directors of the Employer before the Transaction shall cease to constitute a
majority of the Board of Directors of Employer or of any successor to Employer;

(iv) Employer is merged or consolidated with another corporation and as a result of
such merger or consolidation less than fifty (50%) percent of the outstanding voting
securities of the surviving or resulting corporation shall then be owned in the
aggregate by the former shareholders of Employer, other than (A) any party to such
merger or consolidation, or (B) any affiliates of any such party; or

(v) Employer transfers more than 50 percent of its assets, or the last of a series
of transfers results in the transfer of more than 50 percent of the assets of
Employer, to another entity that is not wholly-owned by Employer. For purposes of
this Paragraph 8, the determination of what

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constitutes fifty (50%) percent of the assets of Employer shall be made by the Board
of Directors of the Employer, as constituted immediately prior to the events that
would constitute a change of control if 50 percent of the Employer’s assets were
transferred in connection with such events, in its sole discretion;

(b) upon the discretion of the Board of Directors with Employee consent;

(c) upon termination of Employee’s employment under Section 7(a),(b), (e), or (g) of this
Agreement; or

(d) January 1, 2009.

If Change in the Control of Employer, as described above, occurs, then all shares identified
in this paragraph 8 shall immediately vest upon the date of such change. Employer shall
file and provide to Employee all the necessary paperwork as required for ownership of stock
grants and restricted stock within 30-days of execution of this Agreement.

12<PAGE>

                                                                  EXHIBIT 10.8.1

                             INCENTIVE STOCK OPTION

                                   Granted by

                         BENJAMIN FRANKLIN BANCORP, INC.

                                    under the

            BENJAMIN FRANKLIN BANCORP, INC. 2006 STOCK INCENTIVE PLAN

This Option is and shall be subject in every respect to the provisions of 2006
Stock Incentive Plan, as amended from time to time (the "Plan"), of Benjamin
Franklin Bancorp, Inc. (the "Company"), which is incorporated herein by
reference and made a part hereof. A copy of the Plan is available for review at
the offices of the Company and a copy of the Plan has been provided to each
person granted an Option pursuant to the Plan. The holder of this Option (the
"Holder") hereby accepts this Option subject to all the terms and provisions of
the Plan and agrees that (a) in the event of any conflict between the terms
hereof and those of the Plan, the latter shall prevail, and (b) all decisions
under and interpretations of the Plan by the Board or the Committee shall be
final, binding and conclusive upon the Holder and the Holder's heirs, legal
representatives, successors and permitted assigns. Except where the context
otherwise requires, the term "Company" shall include the parent and all present
and future subsidiaries of the Company as defined in Section 424(e) and 424(f)
of the Internal Revenue Code of 1986, as amended or replaced from time to time
(the "Code").

1.    NAME OF HOLDER: _________________________________________________________

2.    DATE OF GRANT: __________________________________________________________

3.    NUMBER OF SHARES OF COMPANY COMMON STOCK, NO PAR VALUE ("COMMON STOCK")
      FOR WHICH THIS OPTION IS EXERCISABLE: ___________________________________
      (subject to adjustment pursuant to Section 11 below)

4.    EXERCISE PRICE PER SHARE: _______________________________________________
      (subject to adjustment pursuant to Section 11 below)

5.    EXPIRATION DATE OF OPTION: ______________________________________________

6.    VESTING SCHEDULE. Except as otherwise provided in this Agreement, this
      Option may be exercised prior to the Expiration Date in installments as
      follows:

            (i)   Twenty percent (20%) of the number of shares subject to the
                  foregoing grant on the first anniversary of the date of grant;
                  and

            (ii)  An additional twenty percent (20%) of the number of shares
                  subject to the foregoing grant on the dates which are the
                  second through fifth annual anniversaries of the date of
                  grant.

      The right of exercise shall be cumulative. This Option may not be
      exercised at any time on or after the Expiration Date. All vesting shall
      cease upon the date of termination of employment. Vesting will
      automatically accelerate pursuant to Sections 10.1(i), 12.1(i) and
      12.1(ii).

<PAGE>

7.    INCENTIVE AND NONQUALIFIED OPTION. It is the intention of the Company that
      this option grant shall constitute an incentive stock option to the extent
      that, in the calendar year in which this option first becomes exercisable,
      the $100,000 limitation contained in Section 5.6 of the Plan would not be
      exceeded (taking into account all other incentive stock options of the
      Holder, if any, that first became exercisable prior thereto in the same
      calendar year). The portion of this option which is in excess of said
      $100,000 limitation shall constitute a nonqualified stock option.

8.    EXERCISE PROCEDURE.

      8.1. DELIVERY OF NOTICE OF EXERCISE. This Option shall be exercised in
whole or in part by the Holder's delivery to the Company of written notice (the
"Notice of Exercise") setting forth the number of shares with respect to which
this Option is to be exercised, together with payment by cash, a bank check or
other instrument acceptable to the Compensation Committee (the "Committee") in
an amount equal to the aggregate exercise price for the shares being purchased
upon exercise, or by one or more of the following methods, if permitted by the
Committee, in its discretion:

            (i)   by delivery to the Company of shares of Common Stock that are
                  not then subject to restrictions under any Company plan, which
                  have a Fair Market Value (as defined in Section 8.2) equal in
                  amount to the aggregate exercise price of the shares of Common
                  Stock being purchased upon such exercise,

            (ii)  by delivery to the Company of a properly executed Notice of
                  Exercise along with irrevocable instructions to a broker to
                  promptly deliver to the Company cash or a check payable and
                  acceptable to the Company to pay the aggregate exercise price,
                  provided that in the event the Holder chooses to pay the
                  purchase price as so provided, the Holder and the broker shall
                  comply with such procedures and enter into such agreements of
                  indemnity and other agreements as the Committee shall
                  prescribe as a condition of such payment procedure (including,
                  in the case of a Holder who is an executive officer of the
                  Company, such procedures and agreements as the Committee deems
                  appropriate in order to avoid any extension of credit in the
                  form of a personal loan to such officer). The Company need not
                  act upon such Notice of Exercise until the Company receives
                  full payment of the exercise price,

            (iii) by reducing the number of Option shares otherwise issuable to
                  the Holder upon exercise of the Option by a number of shares
                  having a Fair Market Value equal to such aggregate exercise
                  price, or

            (iv)  by delivery to the Company of such other consideration which
                  the Committee determines is consistent with the purpose of the
                  Plan and with applicable laws (including the Sarbanes-Oxley
                  Act of 2002) and regulations, or by any combination of the
                  means of payment.

      8.2. "FAIR MARKET VALUE" on any given date means the closing price per
share of the Common Stock on the trading day immediately preceding such date as
quoted on NASDAQ or, if applicable, as reported by such registered national
securities exchange on which the Common Stock is listed; provided, that, if
there is no trading on such date, Fair Market Value shall be deemed to be the
closing price per share on the last preceding date on which the Common Stock was
traded. If the Common Stock is not quoted on NASDAQ or listed on any registered
national securities exchange, the Fair Market Value of the Common Stock shall be
determined in good faith by the Committee.

9. DELIVERY OF COMMON STOCK; RESERVE.

<PAGE>

      9.1. DELIVERY OF COMMON STOCK. As promptly as practicable after receipt by
the Company of the Notice of Exercise and payment of exercise price pursuant to
Section 8 hereof, the Company shall deliver to the Holder (or if any other
individual or individuals are exercising this Option, to such individual or
individuals) a certificate registered in the name of the Holder (or the names of
the other individual or individuals exercising this Option) and representing the
number of shares with respect to which this Option is then being exercised;
provided, however, that if any law or regulation or order of the Securities and
Exchange Commission or any other body having jurisdiction in the premises shall
require the Company or the Holder (or the individual or individuals exercising
this Option) to take any action in connection with the shares then being
purchased, the date for the delivery of the certificate for such shares shall be
extended for the period necessary to take and complete such action. The Company
may imprint upon said certificate such restrictive legends as the Committee
deems appropriate. Delivery by the Company of the certificates for such shares
shall be deemed effected for all purposes when the Company or a stock transfer
agent of the Company shall have deposited such certificates in the United States
mail, addressed to the Holder, at the Holder's last known address on file with
the Company. The Company will pay all fees or expenses necessarily incurred by
the Company in connection with the issuance and delivery of shares pursuant to
the exercise of this Option.

      9.2. RESERVE. The Company will, at all times while any portion of this
Option is outstanding, reserve and keep available, out of shares of its
authorized and unissued Common Stock or shares of Common Stock held in treasury,
a sufficient number of shares of its Common Stock to satisfy the requirements of
this Option.

10.   CHANGE IN CONTROL.

      10.1. In the event of a Change in Control while this Option is
unexercised, then

            (i)   the vesting of this Option shall be automatically accelerated,
                  effective as of the effective time of the Change in Control
                  (or thirty (30) days preceding the effective date of such
                  Change in Control, if the Committee cancels this Option
                  pursuant to Section 10.2 below), and

            (ii)  subject to Section 10.2 below, after the effective time of
                  such Change in Control, this Option shall remain outstanding
                  and shall be exercisable in full for shares of Common Stock
                  or, if applicable, for shares of such securities, cash or
                  property as the holders of shares of Common Stock received in
                  connection with such Change in Control.

      10.2. This Option may be cancelled by the Committee as of the effective
date of any Change in Control provided that (x) prior written notice of such
cancellation shall be given to the Holder and (y) the Holder shall have the
right to exercise this Option in full during the thirty (30) day period
preceding the effective date of such Change in Control.

      10.3. "Change in Control" shall mean the occurrence of any one of the
following events:

            (i)   If there has occurred a change in control which the Company
                  would be required to report in response to Item 5.01 of Form
                  8-K promulgated under the Securities Exchange Act of 1934, as
                  amended (the "1934 Act"), or, if such regulation is no longer
                  in effect, any regulations promulgated by the Securities and
                  Exchange Commission pursuant to the 1934 Act which are
                  intended to serve similar purposes;

            (ii)  When any "person" (as such term is used in Sections 13(d) and
                  14(d)(2) of the 1934 Act) becomes a "beneficial owner" (as
                  such term is defined in Rule 13d-3

<PAGE>

                  promulgated under the 1934 Act), directly or indirectly, of
                  securities of the Company or Benjamin Franklin Bank (the
                  "Bank") representing twenty-five percent (25%) or more of the
                  total number of votes that may be cast for the election of
                  directors of the Company or the Bank, as the case may be;

            (iii) During any period of two consecutive years, individuals who at
                  the beginning of such period constitute the Board of Directors
                  of the Company, and any new director (other than a director
                  designated by a person who has entered into an agreement with
                  the Company to effect a transaction described in Subsection
                  (ii), (iv) or (v) of this Section 10.3) whose election by the
                  Board or nomination for election by the Company's stockholders
                  was approved by a vote of at least two-thirds (2/3) of the
                  directors then still in office who either were directors at
                  the beginning of the period or whose election or nomination
                  for election was previously so approved, cease for any reason
                  to constitute at least a majority of the Board of Directors of
                  the Company;

            (iv)  The stockholders of the Company approve a merger, share
                  exchange or consolidation ("merger or consolidation") of the
                  Company with any other corporation, other than (a) a merger or
                  consolidation which would result in the voting securities of
                  the Company outstanding immediately prior thereto continuing
                  to represent (either by remaining outstanding or by being
                  converted into voting securities of the surviving entity) more
                  than 70% of the combined voting power of the voting securities
                  of the Company or such surviving entity outstanding
                  immediately after such merger or consolidation or (b) a merger
                  or consolidation effected to implement a recapitalization of
                  the Company (or similar transaction) in which no "person" (as
                  hereinabove defined) acquires more than 30% of the combined
                  voting power of the Company's then outstanding securities; or

            (v)   The stockholders of the Company or the Bank approve a plan of
                  complete liquidation of the Company or the Bank or an
                  agreement for the sale or disposition by the Company or the
                  Bank of all or substantially all of the Company's or the
                  Bank's assets.

11. ADJUSTMENT PROVISIONS.

      11.1. GENERAL. If the Company effects a stock dividend, stock split or
similar change in capitalization affecting the Common Stock, the Committee will
make appropriate adjustments in (i) the number and kind of shares subject to
this Option, and (ii) the option or purchase price in respect of such shares.

      11.2. MERGERS, CONSOLIDATION, DISTRIBUTIONS, LIQUIDATIONS. In the event of
any merger, consolidation, dissolution or liquidation of the Company, the
Committee in its sole discretion may make such substitution or adjustment in the
number and purchase price of shares subject to this Option as it may determine
and as may be permitted by the terms of such transaction, or accelerate, amend
or terminate this Option upon such terms and conditions as it shall provide
(which, in the case of the termination of the vested portion of this Option,
shall require payment or other consideration which the Committee deems equitable
in the circumstances, subject, however, to the provisions of Section 10).

12. TERMINATION OF OPTION.

      12.1. This Option shall terminate upon the Expiration Date, or earlier as
follows:

<PAGE>

            (i)   DEATH. This Option shall vest and become exercisable in full
                  if the Holder's employment with the Company is terminated by
                  reason of the Holder's death while this option is unexercised.
                  This Option may thereafter be exercised by the legal
                  representative or legatee of the Holder for a period of one
                  year from the date of death, subject to termination on the
                  Expiration Date of this Option, if earlier.

            (ii)  DISABILITY. This Option shall vest and become exercisable in
                  full if the Holder's employment with the Company is terminated
                  by reason of Disability (as defined in the Plan) while this
                  option is unexercised. This Option may thereafter be exercised
                  for a period of one year from the date of such termination of
                  employment by reason of Disability, subject to termination on
                  the Expiration Date, if earlier. The death of the Holder
                  during the one-year period for exercise of this Option
                  provided in this Section 12.1(ii) shall extend such period for
                  one year from the date of death, subject to termination on the
                  Expiration Date, if earlier. The Committee shall have sole
                  authority and discretion to determine whether the Holder's
                  employment has been terminated by reason of Disability.

            (iii) NORMAL RETIREMENT. If the Holder's employment with the Company
                  terminates by reason of Normal Retirement (as defined in the
                  Plan) while this Option is unexercised, this Option may
                  thereafter be exercised, to the extent it was vested and
                  exercisable at the time of such termination of employment, for
                  a period of ninety (90) days from the date of such termination
                  of employment, subject to termination on the Expiration Date,
                  if earlier. The death of the Holder during the ninety-day
                  period for the exercise of this Option provided in this
                  Section 12.1(iii) shall extend such exercise period for one
                  year from the date of death, subject to termination on the
                  Expiration Date, if earlier. The Committee shall have sole
                  authority and discretion to determine whether the Holder's
                  employment has been terminated by reason of Normal Retirement.

            (iv)  TERMINATION FOR CAUSE. If the Holder's employment by the
                  Company has been terminated for Cause (as defined in the
                  Plan), this Option shall immediately terminate and be of no
                  further force and effect; provided, however, that the
                  Committee may, in its sole discretion, provide that such
                  Option can be exercised for a period of up to ninety (90) days
                  from the date of termination of employment, subject to
                  termination on the Expiration Date, if earlier. The Board of
                  Directors shall have sole authority and discretion to
                  determine whether the Holder's employment has been terminated
                  for Cause.

            (v)   OTHER TERMINATION. If the Holder's employment by the Company
                  terminates for any reason other than death, Disability, Normal
                  Retirement or for Cause, this Option may thereafter be
                  exercised, to the extent it was exercisable at the time of
                  such termination, for a period of thirty (30) days from the
                  last day of the Holder's employment, subject to termination on
                  the Expiration Date, if earlier.

13.   DISQUALIFYING DISPOSITION.

      13.1. DISQUALIFYING DISPOSITION. The Holder agrees to notify the Company
in writing immediately after making a Disqualifying Disposition of any shares of
Common Stock received pursuant to the exercise of this Option. A "Disqualifying
Disposition" shall have the meaning specified in Section 421(b) of the Code; as
of the date of grant of this Option a Disqualifying Disposition is any
disposition (including any sale) of such shares before the later of (a) the
second anniversary of the date of grant of this Option and (b) the first
anniversary of the date on which the Holder acquired such shares by

<PAGE>

exercising this Option, provided that such holding period requirements terminate
upon the death of the Holder. The Holder also agrees to provide the Company with
any information that the Company shall request concerning any such Disqualifying
Disposition. The Holder acknowledges that he or she will forfeit the favorable
income tax treatment otherwise available with respect to the exercise of this
Option if he or she makes a Disqualifying Disposition of shares received upon
exercise of this Option.

      13.2. ADDITIONAL WITHHOLDING. The Holder hereby agrees that the Company
may withhold from the Holder's wages, or other amounts due to the Holder from
the Company, the appropriate amount of federal, state and local withholding
taxes attributable to the Holder's exercise of this Option. At the Holder's
election (with the consent of the Committee), the amount required to be withheld
may be satisfied, in whole or in part, by (i) authorizing the Company to
withhold from shares of Common Stock to be issued pursuant to the exercise of
this Option a number of shares with an aggregate Fair Market Value (as defined
in Section 8.2) (as of the date the withholding is effected) that would satisfy
the minimum withholding amount due with respect to such exercise, or (ii)
delivering to the Company a number of shares of Stock with an aggregate Fair
Market Value (as of the date the withholding is effected) that would satisfy the
minimum withholding amount due.

      13.3. REIMBURSEMENT. The Holder further agrees that, if the Company does
not withhold an amount from the Holder's wages sufficient to satisfy the
Company's withholding obligation, the Holder will reimburse the Company on
demand, in cash, for the amount underwithheld.

14. MISCELLANEOUS.

      14.1. Neither the Holder nor any other person shall, by virtue of the
granting of this Option, be deemed for any purpose to be the owner of any shares
of Common Stock subject to this Option or to be entitled to the rights or
privileges of a holder of such shares unless and until this Option has been
exercised pursuant to the terms hereof with respect to such shares and the
Company has issued and delivered the shares to the Holder.

      14.2. This Option is not transferable other than by will or by the laws of
descent and distribution, and is exercisable, during the Holder's lifetime, only
by the Holder.

      14.3. Any notice to be given to the Company hereunder shall be deemed
sufficient if addressed to the Company and delivered at the office of the
President of the Company, or such other address as the Company may hereafter
designate, or when deposited in the mail, postage prepaid, addressed to the
attention of the President of the Company at such office or other address.

      14.4. Any notice to be given to the Holder hereunder shall be deemed
sufficient if addressed to and delivered in person to the Holder at his address
furnished to the Company or when deposited in the mail, postage prepaid,
addressed to the Holder at such address.

      14.5. This Option shall be governed by and construed in accordance with
the laws of The Commonwealth of Massachusetts, without regard to its principles
of conflicts of laws.

      14.6. In the case of a partial exercise of this Option the Holder shall
surrender his copy hereof and such partial exercise shall be noted thereon, if
the Company so requests.

      14.7. This Option is subject to all laws, regulations and orders of any
governmental authority which may be applicable thereto and, notwithstanding any
of the provisions hereof, the Holder agrees that he will not exercise the Option
granted hereby nor will the Company be obligated to issue any shares of

<PAGE>

stock hereunder if the exercise thereof or the issuance of such shares, as the
case may be, would constitute a violation by the Holder or the Company of any
such law, regulation or order or any provision thereof.

      14.8. The granting of this Option does not confer upon the Holder any
right to continued employment with the Company or any subsidiary.

      IN WITNESS WHEREOF, the Company has caused this instrument to be executed
in its name and on its behalf as of the date of grant of this Option set forth
above.

                                       BENJAMIN FRANKLIN BANCORP, INC.

                                       By:
                                           -------------------------------------
                                               Thomas R. Venables, President

                               HOLDER'S ACCEPTANCE

      The undersigned hereby accepts the foregoing option and agrees to the
terms and conditions thereof. The undersigned hereby acknowledges receipt of a
copy of the Company's 2006 Stock Incentive Plan.

                                       HOLDER

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

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