Document:

EXHIBIT
      10.1

    

    ADDENDUM
      NO. 18

    REVOLVING
      LOAN AND SECURITY AGREEMENT

    CONVERTIBLE
      REVOLVING CREDIT PROMISSORY NOTE

    DATED
      OCTOBER 26, 1987

    

    

    For
      consideration given and received, Robert Howard and iCAD, Inc. hereby agree
      to
      extend the repayment date in Paragraph D of the above referenced Convertible
      Revolving Credit Promissory Note, as amended, (the “Note”) from January 4, 2006
      to March 31, 2007. Also the Note hereafter will be a maximum principal sum
      of
      Five Million Dollars ($5,000,000).

     

    Effective
      the 31st
      day of
      December 2005.

    

    Please
      note that I, Mr. Robert Howard, do not intend to call in the principal balance
      of the note within 366 days from the expiration date of this amendment or March
      31, 2008.

    

    In
      addition, I agree that I will not, while the revolving line of credit exists,
      convert any outstanding advances under the agreement into shares of iCAD’ common
      stock that would exceed the available shares for issuance defined as the
      authorized shares of the iCAD common stock less issued and outstanding common
      shares less any reserved shares for outstanding convertible preferred stock,
      non-employee warrants and non-employee stock options.

    

    

    
      	ICAD, INC.	 
	 	 
	By: /s/
              Annette Heroux 	/s/ Robert Howard
	Title: Chief Financial
              Officer 	Robert Howard
	 	May 9, 2006SEPARATION
      AGREEMENT

     

    This
      Separation Agreement (“Agreement”) is an agreement between John F. Clifford, for
      himself, his administrators, executors, spouse, heirs, or assigns, and anyone
      acting for him, (“Clifford”) and PhotoMedex, Inc., a Delaware
      corporation (“PhotoMedex”
      or the “Company”), made as of the 30th
      of April
      2006, to be effective on the Effective Date as defined in Section 5(b)
      below.

     

    
      	
              1.

            	 	
              Separation
                from Employment and Consulting
                Arrangement.

            
	 	 	 
	 	
            	
              (a)    PhotoMedex
                and
                Clifford have agreed that Clifford will voluntarily resign from the
                employ
                of PhotoMedex on or before June 30, 2006 (the “Resignation Date”), at a
                date mutually acceptable to them, and Clifford and PhotoMedex agree
                to
                cancel that Employment Agreement dated March 18, 2005, between Clifford
                and PhotoMedex (the “Employment Agreement”), to the end that Clifford may
                pursue other business interests. Until the Resignation Date, Clifford
                will
                continue on a full-time basis as Executive Vice President, Dermatology,
                devoting the majority of his time out of the office and in the field
                so as
                to prepare the sales force for the transition occasioned by his departure.
                Clifford will continue to report to Jeffrey O’Donnell and have use of his
                office. During the period to the Resignation Date, PhotoMedex shall
                be
                free to seek a person to replace Clifford or to realign Clifford’s duties
                to other employees. 

            
	 	 	 
	 	 	
              (b)    From
                the
                Resignation Date to the second anniversary thereof, Clifford shall
                be
                available, at PhotoMedex’s request, to act as a consultant and independent
                contractor for PhotoMedex, and as of the second anniversary of the
                Resignation Date, the consulting arrangement shall expire automatically.
                Clifford shall be available for reasonable telephone consultation
                regarding current and future customers of PhotoMedex and on Company
                and
                competitors’ personnel. Compensation for consultation shall be subsumed
                within the severance to be paid to Clifford under Section 2(d) and
                within
                COBRA premiums described in Section 2(e). If PhotoMedex desires to
                engage
                Clifford for consultation on business development projects, then
                such
                consultation shall be on terms to be negotiated by, and mutually
                acceptable to, Clifford and PhotoMedex, it being understood that
                Clifford
                shall be free to decline such consultation for any reason or no reason.
                Clifford will not have use of an office at PhotoMedex during that
                period.
                Clifford, as an independent consultant, shall be responsible for
                his own
                expenses; PhotoMedex shall reimburse only for those expenses which
                it
                specifically has approved in advance and in accordance with Company
                policy.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	
              2.

            	 	Compensation Arrangements.
	 	 	 
	 	 	
              (a)    Until
                the
                Resignation Date, Clifford shall continue to receive his full base
                salary
                of $300,000 annual in biweekly installments, according to the Company’s
                normal payroll procedures.

            
	 	 	 
	 	 	
              (b)    Until
                the
                Resignation Date, Clifford shall continue to enjoy health coverage
                from
                the Company plan and to participate in the Company 401K plan and
                shall
                continue to earn vacation days and be paid a car allowance, prorated
                to
                the date of Resignation.

            
	 	 	 
	 	 	
              (c)    PhotoMedex
                shall make a final payroll and accounting with Clifford in the payroll
                period following the Resignation Date, including salary, auto allowance,
                vacation pay, and expense reimbursement. This accounting will also
                include
                three payments of $17,500 each, payable on the first day of each
                of the
                first, second and third months in the second twelve months of consulting
                that Clifford will render to PhotoMedex from the first anniversary
                of the
                Resignation Date to the second anniversary thereof, as described
                in
                Section 1(b), where such payments shall be payable for Clifford’s
                consulting without income or other tax withholdings over the second
                twelve
                months. As part of this accounting, Clifford will return to PhotoMedex
                any
                property which PhotoMedex had provided to Clifford for his use in
                pursuance of Company business.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	
            	
              (d)    From
                the Resignation Date until the first anniversary thereof, Clifford
                shall
                receive, as severance compensation, a fee, payable bi-weekly, equal
                to his
                gross base salary in effect at the Resignation Date, viz. $300,000,
                less
                withholding taxes applicable to severance payments. From the Resignation
                Date, Clifford will cease to have a car allowance or to earn vacation
                days
                and will not be able to contribute to the 401K plan and will cease
                to
                participate in any Company benefit programs, except as set forth
                in
                subparagraph (e) below.

            
	 	 	 
	 	 	
              (e)    As
                of the
                Resignation Date, PhotoMedex shall make available to Clifford, in
                accordance with COBRA, coverage under the Company’s health plan;
                PhotoMedex will pay the premiums for such coverage to the sooner
                of the
                following dates: the date that Clifford attains age 65 (namely, September
                30, 2007) or the date that Clifford secures comparable, full-time
                employment from another employer. In either case, after September
                30,
                2007, Clifford shall be responsible for such premiums equal on a
                monthly
                basis to the premiums due under the COBRA coverage, for which PhotoMedex
                will reimburse him through the second anniversary of the Resignation
                Date
                in further consideration of Clifford’s continuing service as consultant.
                As of the Resignation Date, Clifford will cease to be covered by
                PhotoMedex’s workers’ compensation policy or to enjoy Company-paid
                disability and life insurance coverage; it shall be at Clifford’s election
                whether to convert his group life and group disability coverage into
                coverage for himself alone, for the premiums of which he would be
                solely
                responsible.

            
	 	 	 
	
              3.

            	 	Stock Options.

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	 	
              (a)    Stock
                options
                granted by PhotoMedex to Clifford shall continue to vest up to the
                Resignation Date as an officer and employee, and as of the Resignation
                Date. Half of any options remaining unvested as of the Resignation
                Date
                will become fully vested, and the other half will then be canceled.
                After the Resignation Date, Clifford will
                continue as
                a consultant of the Company until the second anniversary of the
                Resignation Date, and during such period and for three months thereafter,
                the vested options will continue to be exercisable by Clifford, unless
                an
                option by its own terms (e.g. 2/18/08) has expired sooner. Set forth
                on
                Exhibit A is a listing of options granted to Clifford, the expected
                status
                quo of such options as of a hypothetical Resignation Date of June
                30,
                2006, after vesting 50% of the then-unvested options, and the expiration
                dates of the options. The provisions of this Section 3 shall supersede
                the
                vesting and exercisability provisions of the option agreements covering
                the discrete grants and shall supersede the provisions of the stock
                option
                plans under which such options were granted. 

            
	 	 	 
	 	 	
              (b)    Any
                options not exercised or otherwise expired by 90 days past the second
                anniversary of the Resignation Date shall be canceled.
                

            
	 	 	 
	
              4.

            	 	Confidentiality, competition.
	 	 	 
	 	 	
              (a)    Clifford
                will not communicate, prior to the date on which the Company may
                be
                obliged to make public disclosure of Clifford’s intended resignation,
                about his resignation to any person, including those in the industry
                or
                employees of PhotoMedex, other than Messrs. O’Donnell, Stewart, McGrath,
                Woodward and Jaffe and Mss. Carmichael, Dailey and Gensel, it being
                noted
                that PHMD may inform members of the Sales management and its professional
                advisors before the public disclosure of Clifford’s intended
                resignation.

            
	 	 	 
	 	 	
              (b)    Until
                the Resignation Date, Clifford will remain subject to the provisions
                of
                Sections 6.1 to 6.4 of the Employment Agreement concerning property
                rights
                and obligations, it being understood that among the trade secrets
                of
                PhotoMedex are any matters of confidential information of PhotoMedex
                not
                in the public domain, confidentiality and will remain subject to
                the
                non-solicitation obligations described in Sections 6.5.1 and 6.5.2
                of the
                Employment Agreement. These obligations will continue unchanged through
                the second anniversary of the Resignation Date, and during the period
                that
                Clifford remains subject to such obligations, he will not disparage
                PhotoMedex, nor will PhotoMedex disparage
                Clifford.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              (c)    Until
                the
                Resignation Date, Clifford will likewise remain subject to the
                non-competition obligations described in Section 6.5.3 of the Employment
                Agreement. In consideration of the severance payment to be made under
                Section 2(d), Clifford shall likewise remain subject, for the twelve
                months following the Resignation Date, to such non-competition
                obligations, except that the second sentence of Section 6.5.3 of
                the
                Employment Agreement is amended to read as follows: “Employee, therefore,
                agrees that, for a period of two (2) years after the Resignation
                Date, he
                will not, as an employee, sole proprietor, partner, or joint venturer,
                in
                the same or similar capacity in which he worked for Employer Group,
                compete with Employer Group in the manufacture, marketing or sales
                of
                excimer laser technology in connection with interventional cardiology,
                psoriasis, or any other field in which Employee has actual knowledge
                of
                Employer’s use of excimer laser technology.” Furthermore, Clifford shall
                be permitted, with PhotoMedex’s consent (such consent not to be
                unreasonably withheld or delayed), to work as employee or consultant
                for
                other companies in the skin care market, provided that such companies
                do
                not market products that are, in PhotoMedex’s sole discretion, competitive
                with those of PhotoMedex as of the Resignation Date. Before embarking
                on
                such work, Clifford shall give PhotoMedex at least 15 days’ prior written
                notice, and if PhotoMedex does not consent to such work, it shall
                advise
                Clifford of its reasons therefor. If PhotoMedex does not reply to
                Clifford’s notice within such 15-day period, then PhotoMedex shall be
                deemed to have consented. 

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	
              5.

            	 	Waiver and Release. 
	 	 	 
	 	 	
              (a)    In
                exchange for
                the promises made to him under this Separation Agreement, Clifford
                completely waives, releases and forever discharges PhotoMedex, its
                past,
                present and future successors
                and assigns,
                officers, directors, partners,
                agents,
                associates and
                employees, from all claims, damages (including but not limited to
                general,
                special, punitive, liquidated and compensatory damages) and
                causes of action of every kind, nature and character, known or unknown,
                in
                law or equity, fixed or contingent, which he may now have, or he
                ever had
                arising from or in any way connected with his employment relationship
                or
                the termination of his employment with PhotoMedex
                or
                any other matter occurring at any time in the past up to and including
                the
                date of this Agreement or involving any continuing effects of any
                acts or
                practices which may have arisen or occurred prior to the date of
                this
                Agreement.
                This release includes but is not limited to:
                any claims of unpaid compensation; all "wrongful discharge" claims;
                all
                claims relating to any contracts of employment express or implied;
                any
                covenant of good faith and fair dealing express or implied; any tort
                of
                any nature; any federal, state, or municipal statute or ordinance;
                any
                claims for employment discrimination, including sexual harassment,
                Pennsylvania Human Relations Act, 43 P.S. Section 951 et seq., Title
                VII
                of the Civil Rights Act of 1964, as amended, the Age Discrimination
                in
                Employment Act ("ADEA"), the Older Workers Benefit Protection Act,
                42
                U.S.C. Section 1981, the Worker Adjustment and Retraining Notification
                Act, and any other federal,
                state, or municipal laws, ordinances
                and regulations relating to employment, and any and all claims for
                attorney's fees and costs. Clifford understands that this release
                does not
                apply to any claims arising under the ADEA after the Effective Date
                of
                this Agreement.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	 	
              (b)    Clifford
                acknowledges hereby that he understands that, since he is aged 40
                or
                older, he has no fewer than 21 days from the date he has received
                this
                Agreement to consider and sign this Agreement. Clifford also understands
                that, as he is aged 40 or older, he has seven days to revoke this
                Agreement after he signs it. Clifford understands that any such revocation
                must be in writing and must be received by PhotoMedex's Corporate
                Counsel
                at
                147 Keystone Drive, Montgomeryville, PA 18936 no
                later than
                5
                p.m.
                on the last day of the applicable revocation period. The Effective
                Date of
                this Agreement is the day after the seven-day revocation period ends.
                Clifford understands that he will not receive the benefits and privileges
                of this Agreement sooner than the Effective Date
                and then only if
                he has not revoked this Agreement pursuant to this Section
                5.

            
	 	 	 
	 	 	
              (c)    Except
                as to rights provided under this Agreement, Clifford acknowledges
                that the
                benefits inuring to him under this Separation Agreement are provided
                to
                him in full and complete satisfaction and discharge of any and all
                obligations that PhotoMedex has or may have to him as an employee
                and that
                he has been paid all the salary, bonuses, benefits and other compensation
                that are due to him. 

            
	 	 	 
	
              6.

            	 	Agreement Not to Sue and
              Damages.
	 	 	 
	 	 	
              (a)    Clifford
                further agrees not to sue PhotoMedex for any claims covered by this
                Separation Agreement or the Employment Agreement. If Clifford should
                sue
                in violation of this Agreement and not be the prevailing party in
                the
                suit, he agrees to pay all costs and expenses incurred by PhotoMedex
                in
                defending against a suit or enforcing this Agreement, including court
                costs, expenses and reasonable attorneys’ fees.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              (b)    PhotoMedex
                agrees not to sue Clifford for any claims covered by this Agreement
                or the
                Employment Agreement. If PhotoMedex should sue in violation of this
                Agreement and not be the prevailing party in the suit, it agrees
                to pay
                all costs and expenses incurred by Clifford in defending against
                a suit or
                enforcing this Agreement, including court costs, expenses and reasonable
                attorneys’ fees.

            
	 	 	 
	 	 	
              (c)    Excluded
                from the release and the covenant not to sue are any claims which
                cannot
                be waived by law, including without limitation
                an
                ADEA claim to the extent such an exception is required by
                law, and the filing of a charge with the Equal Employment Opportunity
                Commission. But Clifford agrees to waive any right to any monetary
                recovery, should any government agency pursue any claims on his behalf.
                Clifford also acknowledges that he has not suffered any on-the-job
                injury
                for which he has not already filed a claim.

            
	 	 	 
	 	 	
              (d)    Clifford
                further acknowledges and agrees that in the event he may breach the
                provisions of this Agreement, PhotoMedex shall: (i) be entitled to
                apply
                for and receive an injunction to restrain any violation of this Agreement,
                and (ii) Clifford shall be obligated to pay to PhotoMedex its costs
                and
                expenses in obtaining such injunction and/or enforcing this Agreement
                and
                defending against such lawsuit (including court costs, expenses and
                reasonable legal fees), and the foregoing shall not affect the validity
                of
                this Agreement and such relief does not constitute in any way a penalty
                or
                a forfeiture.

            
	 	 	 
	
              7.

            	 	
              Miscellaneous.

            
	 	 	 
	 	 	
              (a)    This
                Agreement
                is deemed made and entered into in the Commonwealth of Pennsylvania,
                and
                in all respects shall be interpreted, enforced and governed under
                the
                internal laws of the Commonwealth of Pennsylvania. Any dispute under
                this
                Agreement shall be adjudicated by a court of competent jurisdiction
                in the
                Commonwealth of Pennsylvania.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	 	
            	
              (b)    Clifford
                represents and warrants that he will not seek, and waives any right
                or
                claim to, employment now or in the future by
                PhotoMedex.

            
	 	 	 
	 	
            	
              (c)    This
                Agreement
                resolves all matters between Clifford and PhotoMedex and supersedes
                any
                other written or oral agreement between Clifford and PhotoMedex.
                The
                Employment Agreement of March 18, 2005, is canceled as of the Effective
                Date of this Agreement, except as specifically set forth
                herein.

            
	 	 	 
	 	 	
              (d)    Clifford
                agrees that he is signing this Agreement knowingly and voluntarily,
                that
                he has not been coerced or threatened into signing this Agreement
                and that
                he has not been promised anything not set forth in this Agreement
                in
                exchange for signing this Agreement. If any part of this Agreement
                is
                found to be illegal or invalid, the rest of this Agreement will still
                be
                enforceable.

            
	 	 	 
	 	 	
              (e)    This
                Agreement
                may be executed in two or more counterparts, each of which will be
                deemed
                an original, but all of which together will constitute one and the
                same
                instrument. Faxed copies will be effective and binding.

            
	 	 	 
	 	 	
              (f)    By
                this
                Agreement, Clifford understands further that he has been advised
                to
                consult with an attorney of his own choice at his own expense before
                signing below.
                He has done so. PhotoMedex agrees to pay Clifford’s attorney fees incurred
                in the review and negotiation of this Agreement in an amount not
                to exceed
                $3,000. Any rule of law or decision that would require interpretation
                of
                any claimed ambiguities in this Agreement against the party that
                drafted
                it
                has no application and is expressly waived.

            
	 	 	 
	 	 	
              (g)    This
                Agreement
                has been individually negotiated and is not part of a group exit
                incentive
                or other termination program.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              (h)    No
                modification
                of any provision of this Agreement shall be effective unless made
                in
                writing and signed by both PhotoMedex and Clifford.

            
	 	 	 

    

     

    IN
      WITNESS WHEREOF, this Agreement has been executed and agreed to as of the date
      first above written.

     

    
      	 	 	 
	JOHN
              F.
              CLIFFORD	PHOTOMEDEX,
              INC.
	 	 
	Date: 
              April 30, 2006
	Date:
 	
                 May
                1, 2006

                 

            
	Signature:  
              /s/John F. Clifford	By:  	   /s/ Jeffrey
              F. O’Donnell 
	
               

               

               

              Name:

            	
               

               

               

                 Jeffrey F.
                O’Donnell

            
	
               

               

              Title: 

            	
               

               

                
                President, CEO

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

     

    
      	 	 	Exercise	
            	Grant	 	Expiry	 	Vested at	 	Vested at	 
	Number 	 	Price	 	Date	 	Date 	 	05/31/06 	 	06/30/06	 
	 	 	 	 	 	 	 	 	 	 	 	 
	33,110	 	$2.17	 	02/18/98	 	02/18/08*	 	33,110   	 	33,110	 
	 	 	 	 	 	 	 	 	 	 	 	 
	99,330	 	$1.16	 	08/25/99	 	08/25/09	 	99,330	 	99,330	 
	 	 	 	 	 	 	 	 	 	 	 	 
	66,220	 	$1.07	 	12/13/00	 	12/13/10	 	66,220	 	66,220	 
	 	 	 	 	 	 	 	 	 	 	 	 
	66,220	 	$1.96	 	11/28/01	 	11/28/11	 	66,220	 	66,220	 
	 	 	 	 	 	 	 	 	 	 	 	 
	99,330	 	$2.76	 	05/20/02	 	05/20/12	 	99,330	 	99,330	 
	 	 	 	 	 	 	 	 	 	
            	 	 
	33,110	 	$1.65	 	12/15/03	 	12/15/13	 	22,073	
            	27,592**	 
	 	 	 	 	 	 	 	 	 	
            	 	 
	250,000	 	$2.78	 	04/04/05	 	04/04/10	 	85,000	
            	167,500***	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 

    

     

     

     

     

    

    *
      Natural
      expiry date is earlier than 9/30/08. 

     

    **27,592
      = 22,073 + 50% (33,110 - 22,073).

     

    ***
      167,500 = 85,000 + 50% (250,000 - 85,000).

    

    
      
        
        

      

      11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]