HPSC INC
EX-10.3
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit

10.3</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMPLOYMENT AGREEMENT</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS AGREEMENT by and between HPSC, Inc., a Delaware

corporation (the &#147;Company&#148;), and Raymond R. Doherty (the &#147;Executive&#148;), is made

as of July 19, 2002.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">W I T N E S S E T H</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Executive has served as President and

Chief Operating Officer of the Company since August 2, 1993, most recently

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

restated August 4, 2000);</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, it is hereby agreed as follows:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EMPLOYMENT

PERIOD.&#160; 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 &#147;Employment

Period&#148;) commencing on August&nbsp;4, 2000 (the &#147;Effective Date&#148;) 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 &#147;Extension Date&#148;), 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.&#160; The Employment Period shall end upon the

termination of the Executive&#146;s employment hereunder, as of the Date of

Termination (as defined in Section&nbsp;4(d)).</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SCOPE

OF EMPLOYMENT.&#160; (a)&#160; POSITION. During the Employment Period, the

Executive shall continue to serve as President and Chief Operating Officer of

the Company, reporting to the Chairman and Chief Executive Officer.&#160; The Executive shall adhere to policies

established by the Board of Directors of the Company (the &#147;Board&#148;).</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DUTIES.&#160; 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&#146;s reasonable best efforts to carry out such

responsibilities faithfully and efficiently.&#160;

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&#146;s responsibilities as an employee of the Company

in accordance with this Agreement.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>LOCATION.&#160; The Company&#146;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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>COMPENSATION.&#160; The Executive&#146;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 &#147;Compensation Committee&#148;), subject to Sections 3(a)

through 3(d).</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BASE

SALARY.&#160; During the Employment Period,

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

salary (&#147;Base Salary&#148;) as determined by the Compensation Committee from time to

time.&#160; Commencing January&nbsp;1, 2001,

the Executive&#146;s Base Salary shall be at a rate of not less than $270,000.&#160; The Base Salary shall be payable in

accordance with the Company&#146;s regular payroll practice for its senior

executives, as in effect from time to time.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INCENTIVE

PLAN.&#160; The Compensation Committee has

developed an incentive compensation plan (&#147;Incentive Plan&#148;) for key management

employees.&#160; 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.&#160; The Executive shall be

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

the Compensation Committee.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>OTHER

INCENTIVE COMPENSATION. During the Employment Period, the Executive shall be

eligible for additional awards under the Company&#146;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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>OTHER

BENEFITS.&#160; 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&#146;s

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

the Executive and/or the Executive&#146;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.&#160;

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

vacation annually and an appropriate vehicle provided by the Company.</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TERMINATION

OF EMPLOYMENT.&#160; This Employment

Agreement may be terminated as provided in Sections 4(a) through 4(d).&#160; Termination pursuant to any of Sections 4(a)

through 4(d) is subject to the provisions of Section 5.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DEATH

OR DISABILITY.&#160; The Executive&#146;s

employment shall terminate automatically upon the Executive&#146;s death.&#160; The Company shall be entitled to terminate

the Executive&#146;s employment because of the Executive&#146;s Disability (as defined in

the Company&#146;s long-term disability insurance policies).&#160; A termination of the Executive&#146;s employment

by the 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 &#147;Disability Effective Date&#148;), unless the Executive returns

to full-time performance of the Executive&#146;s duties before the Disability

Effective Date.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TERMINATION

BY THE COMPANY. (i) FOR CAUSE. The Company may terminate the Executive&#146;s

employment for Cause at any time during the Employment Period as follows.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;Cause&#148;

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.&#160; No act

or failure to act on the part of the Executive shall be considered &#147;willful&#148;

unless it is done, or omitted to be done, by the Executive in bad faith or

without reasonable belief that the Executive&#146;s action or omission was in the

best interests of the Company.&#160; 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.&#160; 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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A

termination of the Executive&#146;s employment for Cause shall not be effective

unless it is accomplished in accordance with the following procedures.&#160; The Company shall give the Executive written

notice (&#147;Notice of Termination for Cause&#148;) of its intention to terminate the

Executive&#146;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.&#160; The &#147;Special Board Meeting for Cause&#148; means

a meeting of the Board called and held specifically and exclusively for the

purpose of considering the Executive&#146;s</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





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<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.&#160; The

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

the Special Board Meeting for Cause.&#160;

The Executive&#146;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.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii) WITHOUT

CAUSE.&#160; The Company may terminate the

Executive&#146;s employment without cause at any time during the Employment Period.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TERMINATION

BY THE EXECUTIVE.&#160; (i)&#160; FOR GOOD REASON.&#160; The Executive may terminate employment for Good Reason at any

time during the Employment Period as follows.</p>



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<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;Good

Reason&#148; means:</p>



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<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the

assignment to the Executive of any duties or responsibilities inconsistent in

any respect with those customarily associated with the position of President

and Chief Operating 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&#146;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;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">III.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any

requirement by the Company that the Executive be principally based at any

office or location more than 25 miles from the Company&#146;s current offices in

Boston, Massachusetts; or</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IV.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any

failure by the Company to comply with Section 11(c) of this Agreement;</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For

purposes of this Section 4(c), any reasonable determination of &#147;Good Reason&#148;

made by the Executive shall be conclusive.&#160;

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

effectuated by giving the Company written notice (&#147;Notice of Termination for

Good Reason&#148;) 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.&#160; 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).</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(C)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>WITHOUT

GOOD REASON.&#160; 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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DATE

OF TERMINATION.&#160; The &#147;Date of

Termination&#148; means the date of the Executive&#146;s death, the Disability Effective

Date, the date on which the termination of the Executive&#146;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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>OBLIGATIONS

OF THE COMPANY UPON TERMINATION.&#160; (a) BY

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

EXECUTIVE. &#160;Except as provided in

Section 6 below, if, during the Employment Period, the Company terminates the

Executive&#146;s employment for any reason, other than Cause or the Executive&#146;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; the Company

shall</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>continue

to pay the Executive his Base Salary for a period of twelve months following

the Date of Termination;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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;</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>continue

benefits to the Executive and/or the Executive&#146;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&nbsp;3(d) as if the Executive&#146;s employment had not been terminated;

and</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except

in the case of termination by the Executive without Good Reason, cause all of

the Executive&#146;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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DEATH

OR DISABILITY.&#160; If the Executive&#146;s

employment is terminated by reason of the Executive&#146;s death or Disability during

the Employment Period, the Company shall</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>continue

to pay to the Executive or, in the case of the Executive&#146;s death, to the

Executive&#146;s designated beneficiaries (or, if there is no such beneficiary, to

the Executive&#146;s estate or legal representative) the Executive&#146;s Base Salary for

a period of six months following the Date of Termination; and</p>



<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>continue

benefits to the Executive and/or the Executive&#146;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, medical, life,

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

in Section&nbsp;3(d) as if the Executive&#146;s employment had not been terminated.</p>



<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>cause

all of the Executive&#146;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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BY

THE COMPANY FOR CAUSE; BY THE EXECUTIVE WITHOUT GOOD REASON.&#160; If the Executive&#146;s employment is terminated

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

Company&#146;s only obligation to the Executive will be to pay any arrearages of

salary or incentive compensation as of the Date of Termination.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CHANGE

OF CONTROL.&#160; Notwithstanding the

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

such term is defined in the Company&#146;s 1998 Amended and Restated Stock Incentive

Plan) occurs, the following shall apply.</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If,

during the three (3) year period following a Change in Control, the Executive&#146;s

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

the Executive&#146;s employment is terminated by reason of the Executive&#146;s death or

Disability, or if the Executive terminates his employment for Good Reason:</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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&#146;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;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

Company shall cause all of the Executive&#146;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</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

Company shall continue benefits to the Executive and/or the Executive&#146;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&nbsp;3(d) as if the Executive&#146;s employment

had not been terminated.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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:</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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

maximum incentive compensation the Executive could have earned during the

twelve (12) months following the Date of Termination; and</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

Company shall continue benefits to the Executive and/or the Executive&#146;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&nbsp;3(d) as if the Executive&#146;s employment

had not been terminated.</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<br clear="all" style="page-break-before:always;">

</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If,

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

is terminated by the Company for Cause, the Company&#146;s only obligation to the

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

of the Date of Termination.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NON-EXCLUSIVITY

OF RIGHTS.&#160; Nothing in this Agreement

shall prevent or limit the Executive&#146;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.&#160; 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.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>FULL

SETTLEMENT.&#160; The Company&#146;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.&#160; 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.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONFIDENTIAL

INFORMATION; NON-COMPETITION.&#160; (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&#146;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&#146;s violation of this Section 9) (&#147;Confidential

Information&#148;).&#160; The Executive shall not

communicate, divulge or disseminate Confidential Information at any time during

or after the Executive&#146;s employment with the Company, except with the prior written

consent of the Company or as otherwise required by law or legal process.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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 employed by a competitor of the Company while the Executive is receiving

termination payments under Section 5.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INDEMNIFICATION;

ATTORNEYS&#146; FEES.&#160; The Company shall pay

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

of the</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company for all expenses, costs, liabilities and legal fees which the

Executive may incur in the discharge of his duties hereunder.&#160; The Company also agrees to pay, as

incurred,&#160; 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&#146;s undertaking to

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

disposition of such action.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SUCCESSORS.&#160; (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.&#160; This Agreement shall

inure to the benefit of and be enforceable by the Executive&#146;s legal

representatives.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This

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

successors and assigns.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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.&#160; As used in this Agreement, &#147;the Company&#148;

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.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>MISCELLANEOUS.&#160; (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.&#160; The captions of this Agreement are not part

of the provisions hereof and shall have no force or effect.&#160; 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.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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:</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Executive:</font></p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Raymond R. Doherty</font></p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">242 Cross Street</font></p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Belmont, Massachusetts 02178</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Company:</font></p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">HPSC, Inc.</font></p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">60 State Street</font></p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Boston, Massachusetts 02109</font></p>



<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or to such other address as either party furnishes to the other in

writing in accordance with this Section 12(b).&#160;

Notices and communications shall be effective when actually received by

the addressee.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

invalidity or unenforceability of any provision of this Agreement shall not

affect the validity or enforceability of any other provision of this

Agreement.&#160; 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.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

Executive&#146;s or the Company&#146;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.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

Executive and the Company acknowledge that this Agreement supersedes any other

agreement between them concerning the subject matter hereof.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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.&#160; Any attempt by the Executive to anticipate,

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

void.&#160; Payments hereunder shall not be

considered assets of the Executive in the event of insolvency or bankruptcy.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The

obligations of the Company and the Executive under Sections 5,&#160; 6, 7, 8, 9, 10, 11 and 13 shall survive the

expiration or termination for any reason of this Agreement.</p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">13.</font><font size="1" color="black" face="Times New Roman" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" face="Times New Roman" style="color:windowtext;">GROSS-UP

PAYMENT</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)</font><font size="1" color="black" face="Times New Roman" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" face="Times New Roman" style="color:windowtext;">DEFINITIONS.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>





<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Code&#148; means the Internal Revenue Code of 1986, as

amended, and regulations and proposed regulations thereunder.</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Excise Tax&#148; means the excise tax imposed by Code

Section 4999.</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gross-Up Payment&#148; means the additional amount to be

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

this section.</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Payment&#148; 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)).</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Tax Counsel&#148; means the tax counsel selected by the

Company and reasonably acceptable to the Executive.</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)</font><font size="1" color="black" face="Times New Roman" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" face="Times New Roman" style="color:windowtext;">AMOUNT.</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.&#160; 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 &#147;Parachute

Payments&#148; within the meaning of Code Section 280G(b)(2), and (II) all &#147;Excess

Parachute Payments&#148; 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

&#147;Parachute Payment&#148; within the meaning of Code Section 280G(b)(2), or such

&#147;Excess Parachute Payments&#148; (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 &#147;Excess Parachute Payments&#148; 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).&#160; 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</font></p>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>





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</font></div>



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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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 bemade, 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.</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(c)</font><font size="1" color="black" face="Times New Roman" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" face="Times New Roman" style="color:windowtext;">PAYMENT.</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.&#160; 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&#146;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.</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(d)</font><font size="1" color="black" face="Times New Roman" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" face="Times New Roman" style="color:windowtext;">ADJUSTMENT.</font></p>



<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.&#160; 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&#146;s receipt of notice of

such final determination or opinion.</font></p>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>





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</font></div>



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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the Executive has hereunto set the

Executive&#146;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.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="56%" valign="top" style="padding:0in 0in 0in 0in;width:56.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="43%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:43.52%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">HPSC, INC.</font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="56%" valign="top" style="padding:0in 0in 0in 0in;width:56.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.62%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: </font></p>

  </td>

  <td width="38%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:38.9%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&#160; J. Kermit Birchfield</font></p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:61.1%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" style="padding:0in 0in 0in 0in;width:38.9%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">J. Kermit

  Birchfield</font></p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:61.1%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" style="padding:0in 0in 0in 0in;width:38.9%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman of the

  Compensation</font></p>

  </td>

 </tr>

 <tr>

  <td width="61%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:61.1%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="38%" valign="top" style="padding:0in 0in 0in 0in;width:38.9%;">

  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Committee of the

  Board of Directors</font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="56%" valign="top" style="padding:0in 0in 0in 0in;width:56.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="43%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:43.52%;">

  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Raymond R.

  Doherty</font></p>

  </td>

 </tr>

 <tr>

  <td width="56%" valign="top" style="padding:0in 0in 0in 0in;width:56.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="43%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:43.52%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXECUTIVE</font></p>

  </td>

 </tr>

</table>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>





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