Document:

exv10w1

 

Exhibit 10.1

SEPARATION AGREEMENT

          This Mutual Separation Agreement (“Agreement”) is entered into between AMICAS, Inc., (the
“Company”), and Peter McClennen (“Employee”).

W I T N E S S E T H:

          WHEREAS, Employee is employed by the Company;

          WHEREAS, Employee’s employment by the Company will be terminated on December 31, 2007 (the
“Termination Date”);

          WHEREAS, in recognition of Employee’s executive position with the Company and Employee’s
knowledge and experience concerning the Company’s Business and its confidential information and
trade secrets, Employee has agreed to provide Company with other protections as set forth herein;

          WHEREAS, the Company and Employee desire to settle fully and finally all claims Employee may
have against the Company and all claims Company may have against the Employee; and

          WHEREAS, except as expressly provided herein, the Company and Employee intend that this
agreement supersede and replaces any and all other agreements entered into between the Company and
Employee;

          WHEREAS, the Company and Executive desire to affect a smooth transition between now December
31, 2007;

          NOW, THEREFORE, in consideration of the covenants and agreements set forth herein, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and Employee agree as follows:

	 	 	 
	1.

	 	Transition Period
	 
	 	 
	 

	 	Employee agrees that Employee’s duties and obligations as president and chief operating
officer of the Company are modified and that Employee will retain the title of president and
chief operating officer through December 31, 2007, provided, however, that during such
period Employee conducts himself in a professional manner, does nothing to impair the
Company’s reputation or business interests, and discharges his responsibilities to the
Company as assigned or required by law. Employee is relieved of daily operational
responsibilities and will act as advisor to the chairman and chief executive officer. These
services will be performed at the direction of the chairman and chief executive officer and
will be performed off-premises
	 
	 	 
	2.

	 	Severance 
	 
	 	 
	 

	 	A.      Company shall pay to the Employee as severance pay Employee’s current monthly base salary
of $25,000, in accordance with the Company’s normal payroll procedures, for the remainder of
Employee’s Term, which ends December 31, 2007, and an additional twelve (12) months through
December 31, 2008; and
	 
	 	 
	 

	 	B.      Company shall pay the COBRA insurance premiums for medical and dental insurance for the
Employee and the Employee’s family for the remainder of Employee’s Term, which ends December
31/2007, and an additional twelve (12) months through December 31, 2008, provided that
Employee elects and remains eligible for such

 

 

	 	 	 
	 

	 	coverage. All COBRA premiums after December 31, 2008 shall be paid solely by the Employee;
and

	 	 	 
	 

	 	C.      if Company achieves the targeted goals for the fiscal year set forth in Exhibit 1 of
Employee’s amended employment agreement only, then Employee shall receive the benefits
provided therein, if any, including a bonus and the vesting of any performance based stock
options all as described in Exhibit 1 (as adjusted May, 2007 to incorporated acquisition of
VSF). Company shall pay Employee the bonus at the time bonuses are paid to other
executives, but not later than the next January 31st following the Employee’s
last day of employment. The rights to exercise any vested performance based stock options
shall terminate on the ninety (90) day anniversary following the date Employee is notified
by Company that the targeted goals were met;
	 
	 	 
	3.

	 	General Release and Covenant Not to Sue by Employee.

          In consideration of the undertakings, transactions and consideration recited in this
Agreement, Employee, for himself and his heirs, successors and assigns, and personal
representatives, hereby releases, discharges, and covenants not to sue the Company, its
predecessors, successors, parents, subsidiaries, affiliates, divisions, assigns, employees as of
the Termination Date and/or the Effective Date, officers, directors, shareholders, representatives,
attorneys, and agents (collectively referred to herein as “Releasees”), collectively, separately,
and severally, from or for any and all state, local or federal claims, causes of action,
liabilities, and judgments of every type and description whatsoever, known and unknown (including,
but not limited to, claims arising under the Civil Rights Act of 1964, as amended; 42 U.S.C. §
1981; the Rehabilitation Act of 1973, as amended; the Employee Retirement Income Security Act of
1974, as amended; the Fair Labor Standards Act of 1938, as amended; the Americans with Disabilities
Act; the Securities Act of 1933; and the Securities Exchange Act of 1934) which Employee,
Employee’s heirs, administrators, executors, personal representatives, beneficiaries, and assigns
may have or claim to have against Releasees as of the date hereof related to, or for any reason
arising from, his employment with the Company or his separation from employment. It is agreed that
the foregoing shall not release any claim that the Employee may have against the Company arising as
a result of the ownership of any stock, stock option or other equity or debt interest in the
Company provided, however, Employee shall not breach any term of the Non Compete and Non Disclosure
Agreement in exercising his right(s) to any such claim.

          In consideration of the undertakings, transactions and consideration recited in this
Agreement, the Company, for itself and its successors and assigns, hereby unconditionally and
irrevocably remises, releases and forever discharges the Employee, the Employees heirs and
administrators, or any of them, of and from any and all suits, claims, demands, interest, costs
(including attorneys’ fees and costs actually incurred), expenses, actions and causes of action,
rights, liabilities, obligations, promises, agreements, controversies, losses and debts, of any
nature whatsoever related to Employee’s employment and/or separation from employment, which the
Company now has, owns or holds, or at any time heretofore ever had, owned or held, or could have
owned or held, whether known or unknown, suspected or unsuspected, from the beginning of the world
to the date of execution of this Agreement; provided, however, that nothing in this
Agreement shall prevent the Company from bringing any claims against Employeearising from or
related to any intentional misconduct engaged in by Employeeas an

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employee, officer or member of the Board of Directors, including, but not limited to, claims
for theft or fraud.

	 	 	 
	4.

	 	Release of Claims under the Age Discrimination in Employment Act of 1967, as Amended.

          Employee hereby knowingly and voluntarily releases, discharges and covenants not to sue
Releasees, collectively, separately and severally, from or for any and all liability, claims,
allegations, and causes of action arising under the Age Discrimination in Employment Act of 1967,
as amended (“ADEA”), which Employee, Employee’s heirs, administrators, executors, personal
representatives, beneficiaries, and assigns may have or claim to have against Releasees.
Notwithstanding any other provision or section of this Agreement, Employee does not hereby waive
any rights or claims under the ADEA that may arise after the date on which Employee signs the
Agreement.

          Employee hereby acknowledges and represents that (a) Employee has been given a period of at
least twenty-one (21) days to consider the terms of this Agreement, (b) the Company has advised
Employee in writing to consult with an attorney prior to executing this Agreement, and (c) Employee
has received valuable and good consideration to which Employee is otherwise not entitled in
exchange for Employee’s execution of this Agreement.

          Employee and the Company hereby acknowledge this Agreement shall not become effective or
enforceable until the eighth (8th) day after it is executed by Employee (“Effective Date”) and that
Employee may revoke this Agreement at any time before the Effective Date.

          In the event Employee chooses to exercise Employee’s option to revoke this Agreement, Employee
shall notify the Company in writing to the Company’s designated agent for this purpose, and return
to the Company all monies paid pursuant to this Agreement, no later than 5:00 p.m. of the last day
of the revocation period. Such notice shall be delivered to the Company by registered or certified
mail, return receipt requested and addressed as follows:

	 	 	 
	 

	 	Vice President, Human Resources
	 

	 	AMICAS, Inc.
	 

	 	20 Guest St.
	 

	 	Boston, MA 02135

	 	 	 
	4.

	 	Claims for Attorneys’ Fees, Costs and Expenses

          Employee understands and agrees that the aforesaid payments to Employee include and encompass
therein any and all claims with respect to attorneys’ fees, costs, and expenses for or by any and
all attorneys who have represented Employee or with whom Employee has consulted or who have done
anything in connection with the subject matter of this Agreement or any and all claims released
herein.

	 	 	 
	5.

	 	Indemnification for Loss of Consortium

          Employee covenants and agrees that if there is any claim for loss of consortium
against Releasees, or any other similar claim, arising out of or related to Employee’s relationship
or transactions with the Company (including not limited to Employee’s employment or separation

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of employment with the Company), Employee agrees to indemnify and hold the Company harmless from
any liability, including costs and expenses (as well as reasonable attorneys’ fees) incurred by the
Company as a result of any such claim.

	 	 	 
	6.

	 	Agreement to Cooperate

          Employee further covenants and agrees that Employee shall cooperate, including attendance at
depositions, arbitrations and trials, with the Company in any pending or future matters involving
any litigation, investigation, or other dispute, in which Employee, by virtue of Employee’s prior
employment with the Company, has relevant knowledge or information. The Company agrees to promptly
reimburse the Employee for any reasonable out of pocket costs and expenses incurred and to pay the
Employee a reasonable per diem compensation.

	 	 	 
	7.

	 	Confidentiality of Agreement.

          A.      As of the Termination Date and henceforth, except as otherwise specifically provided in
Section 7.B. of this Agreement and except as otherwise required by law, rule or regulation, both
parties agree and covenant that they have maintained and will continue to maintain the
confidentiality of, and not to disclose, reveal, publish, disseminate, or discuss, directly or
indirectly, to or with any other person or entity the terms of this Agreement (including whether or
not any amount was paid, the amount paid, or opinion(s) or information each party may have with
respect to this Agreement).

          B.      The following disclosures, which are specific exceptions to Section 7.A. above, are
permitted in the following limited circumstances:

                    (i)      Employee may make such disclosures as are reasonably necessary for tax reporting purposes;

                    (ii)     Employee may disclose the terms and amount paid under this Agreement as reasonably
necessary to obtain legal, tax, or accounting advice or services;
Employee is permitted to disclose the terms of this Agreement to the extent required in any legal
proceeding involving the enforcement of this Agreement, but, as to any other legal proceedings,
Employee is permitted to disclose the terms of this Agreement only to the extent (1) specifically
requested and consented to in writing by an officer or other authorized representative of the
Company, or (2) compelled pursuant to a subpoena or court order, provided, however, that, if
reasonably possible, before disclosing this Agreement pursuant to a subpoena or court order,
Employee will provide notice to the Company that Employee has been served with such subpoena or
court order, including by providing the Company with a copy thereof, and will not disclose this
Agreement before the Company has had the opportunity to object to such disclosure within the time
allowed by law or otherwise to act to protect such information from disclosure. Nothing in this
provision shall be construed to require Employee to disobey any court order or lawful process.

	 	 	 
	8.

	 	Non-Disparagement.

          Except as otherwise required by law, both parties agree and covenant that they shall not make
any statement, written or verbal, in any forum or media, or take any action in disparagement of the
other party to the general public, current or prospective employers of the Employee, and/or the
Company’s employees, customers, suppliers, and/or business partners.

	 	 	 
	9.

	 	Return of Company Property. 

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On or before the Termination Date or as promptly thereafter as reasonable practicable, Employee
shall deliver to the Company (a) all memoranda, notes, records, manuals or other documents
(including, but not limited to, written instruments, voice or data recordings, or computer tapes,
disks or files of any nature), including all copies of such materials and all documentation
prepared or produced in connection therewith, pertaining to the performance of Employee’s services
for the Company, the business of the Company, or containing Trade Secrets or Confidential
Information regarding the Company’s business, whether made or compiled by Employee or furnished to
Employee by virtue of Employee’s employment with the Company, and (b) all computers, credit cards,
telephones, office equipment, software, and other property the Company furnished to Employee by
virtue of Employee’s employment with the Company.

	 	 	 
	10.

	 	Attorneys’ Fees, Costs and Expenses.

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

	 	 	 
	11.

	 	Applicable Law.

          This Agreement has been entered into in and shall be governed by and construed under the laws
of the State of Massachusetts without reference to the choice of law principles thereof.

	 	 	 
	12.

	 	Modification; Severability.

          If fulfillment of any provision of this Agreement shall transcend the limit of validity
prescribed by law, then the obligation to be fulfilled shall be reduced or modified to the limit of
such validity; and if any clause or provision contained herein operates or would operate to
invalidate this Agreement in whole or in part, then such clause or provision only shall be held
ineffective as though not herein contained, and the remainder this Agreement shall remain in full
force and effect.

	 	 	 
	13.

	 	Understanding.

          Employee herewith covenants and agrees that Employee has read and fully understands the
contents and the effect of this Agreement. Employee warrants and agrees that Employee has had a
reasonable opportunity and has been advised in writing to seek the advice of an attorney as to such
content and effect. Employee accepts each and all of the terms, provisions, and conditions of this
Agreement, and does so voluntarily and with full knowledge and understanding of the contents,
nature, and effect of this Agreement.

	 	 	 
	14.

	 	Entire Agreement; Miscellaneous.

          Except for sections 1D, 1E, 3A(ii), 3B, 3C, 3F, 3H, 4, 5 and 7 of the Employee’s Employment
Agreement and the Non Compete and Non Disclosure Agreement (Exhibit 2 to the Employee’s Employment
Agreement) which terms therein shall govern and prevail over the terms of this Agreement and which
shall survive the execution of this Agreement, Employee and the Company acknowledge and agree that
they are not relying on any representations, oral or written, other than those expressly contained
in this Agreement, and that this Agreement supersedes all other prior agreements (except as
described above), proposals, negotiations,

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conversations, discussions and course of dealing between the parties with respect to the
subject matter hereof. Section headings are for convenience of reference only and are not intended
to create substantive rights or obligations. This Agreement may be executed in counterparts, each
of which shall be deemed an original, and together shall constitute one and the same Agreement.

	 	 	 
	/s/ Peter McClennen

	 	October 25, 2007
	 

	 	 
	Peter McClennen

	 	Date
	 
	 	 
	AMICAS, Inc.
	 	 
	 
	 	 
	/s/ Stephen Kahane, M.D., M.S.

	 	October 25, 2007
	 

	 	 
	Dr. Stephen Kahane, Chairman and CEO

	 	Date

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Exhibit 10.1

ARLINGTON TANKERS LTD.

2007 BONUS PLAN

(As Amended on August 17, 2007)

     1.      Purpose. The purpose of this Bonus Plan (this “Plan”) is to retain and
to provide an incentive for the executive officers of Arlington Tankers Ltd., a Bermuda corporation
(the “Company”).

     2.      Period Covered by Plan. This Plan shall cover the fiscal year ending
December 31, 2007.

     3.      Eligibility. The co-chief executive officers of the Company as of the
date of the adoption of this Plan are eligible to participate in the Plan (each a “Participant”).
In order to be eligible to receive any bonus payments under this Plan, as described in Exhibit
A, the Participant must be employed by the Company as of December 31, 2007 (the “Determination
Date”).

     4.       Bonus Payments. In the event that the Company achieves an objective set
forth on Exhibit A attached hereto, each Participant shall be eligible to receive the bonus
payment set forth opposite such objective consistent with the terms set forth in this Plan. The
bonus amounts set forth on Exhibit A are cumulative, meaning that each Participant shall be
eligible to receive the bonus payment for each objective achieved, it being understood that (1) the
Qualified Transaction Bonus Payment would be paid only once, even if more than one Qualified
Transaction is completed during 2007; and (2) the Other Approved Transaction Objective may be
satisfied whether or not any Qualified Transactions are completed during 2007. If, prior to the
time that all Reconfirmation Payments shall have been paid, a Participant’s employment with the
Company is terminated in circumstances that would entitle such Participant to compensation under
Section 4.2 of such Participant’s Executive Change in Control Agreement, dated as of October 24,
2005 (a “Change in Control Agreement”), then, in addition to any other payments to which such
Participant would be entitled under such Change in Control Agreement, such Participant shall be
eligible to receive accelerated payment of any such unpaid Reconfirmation Payments.

     5.       Withholding Taxes. The Company may deduct from any payment otherwise due
to Participants under this Plan any amount required to be withheld by the Company under applicable
federal, state, and local or other income and employment tax withholding laws and regulations. If
the Company elects not to or cannot withhold such amounts from payments due to a Participant, each
Participant must pay the Company the full amount, if any, required for withholding.

     6.      Non-Assignability. No Participant shall have the power or right to
transfer, assign, mortgage, or otherwise encumber his interest under this Plan; nor shall such
interest be subject to seizure for the payment of a Participant’s debts, judgments, alimony, or
separate maintenance or be transferable by operation of law in the event of a Participant’s
bankruptcy, insolvency, divorce or separation. This Plan shall be binding upon and shall inure to
the benefit of the Company and its successors and assigns.

     7.       Amendment and Termination of this Plan. The Compensation Committee may
amend or terminate this Plan or any portion thereof at any time.

 

 

     8.      Administration. This Plan shall be administered by the Compensation
Committee of the Company’s Board of Directors. The Compensation Committee shall have authority to
adopt, amend and repeal such administrative rules, guidelines and practices relating to this Plan
as it shall deem advisable. The Compensation Committee shall have broad discretion to construe and
interpret the terms of this Plan, to make adjustments or amendments to this Plan, and to make
determinations as to whether the criteria for bonus payments have been satisfied. All decisions by
the Compensation Committee shall be made in the Compensation Committee’s sole discretion and shall
be final and binding on all Participants and all persons having or claiming any interest in this
Plan. No member of the Compensation Committee shall be liable for any action or determination
relating to or under this Plan unless it is demonstrated that such action or determination was made
in bad faith.

     9.      Compliance With Code Section 409A. Notwithstanding any other provision
of this Plan to the contrary, all bonus payments made hereunder should be made no later than thirty
days following the Determination Date. The Company shall have no liability to a Participant, or
any other party, if an Award that is intended to be exempt from, or compliant with, Section 409A of
the Internal Revenue Code is not so exempt or compliant or for any action taken by the
Compensation Committee.

     10.       Employment Rights. The adoption of this Plan does not confer upon any
Participant any right to continued employment with or service to the Company or interfere in any
way with the right of the Company to terminate the Participant’s employment or service at any time.

     11.       Unfunded, Unsecured Obligation. This Plan shall at all times be
entirely unfunded and no provisions shall at any time be made with respect to segregating assets of
the Company for payment of any benefits hereunder. Additionally, nothing contained herein shall be
construed as giving a Participant, his or her beneficiary, or any other person, any equity or other
interest of any kind in any assets of the Company or creating a trust of any kind or a fiduciary
relationship of any kind between the Company and any such person. As to any claim for any unpaid
amounts under this Plan, a Participant, his or her beneficiary, and any other person having a claim
for payment shall be unsecured creditors.

     12.      Governing Law. This Plan shall be construed, interpreted and enforced
in accordance with the internal laws of the State of Connecticut without regard to any applicable
conflicts of laws.

     13.      Effective Date. This Plan is effective on April 20, 2007 (the
“Effective Date”), the date on which the Board of Directors of the Company approved this Plan.

2

 

Exhibit A

Objective

Complete at least one transaction
during 2007 that satisfies the
following criteria (the “Transaction
Criteria”):

•   Transaction
consideration with an
aggregate value equal
to or greater than $50
million; and

•   At the time of
the closing of the
transaction, the
projected cash
available for
dividends must be
greater than or equal
to the Company’s
blended cost of
capital of 8.3%,
referred to as
“Investment Criteria”,
for a minimum of five
years.

Any transaction that satisfies the
Transaction Criteria is referred to
as a “Qualified Transaction” and
this performance objective is
referred to as the “Qualified
Transaction Objective.”

Bonus Payment

One lump sum cash payment of
$200,000 (the “Qualified

Transaction Bonus Payment”),
payable within two business days
following the date on which the
Company holds its first regularly
scheduled Board of Directors
meeting in 2008.

 

With respect to any Qualified
Transaction completed in 2007, a
one-time re-confirmation by the
Compensation Committee that, as of
the first anniversary of the closing
of such Qualified Transaction, such
Qualified Transaction satisfies the
initial Investment Criteria (the
“Reconfirmation Objective”).

For each Qualified Transaction that
satisfies the Reconfirmation
Objective, four annual lump sum
cash payments (each, a
“Reconfirmation Bonus Payment” and,
collectively, the “Reconfirmation
Bonus Payments”), the first payable
within two business days following
the date on which the Company holds
its first regularly scheduled Board
of Directors meeting in 2009, so
long as the Participant is employed
by the Company as of December 31,
2008; the second payable on the
date on which the Company holds its
first regularly scheduled Board of
Directors meeting in 2010, so long
as the Participant is employed by
the Company as of December 31,
2009; the third payable on the date
on which the Company holds its
first regularly scheduled Board of
Directors meeting in 2011, so long
as the Participant is employed by
the Company as of December 31,
2010; and the fourth payable on the
date on which the Company holds its
first regularly scheduled Board of
Directors meeting in

A-1

 

2012, so long
as the Participant is employed by
the Company as of December 31,
2011. The amount of each annual
Reconfirmation Bonus Payment for a
particular Qualified Transaction
shall be calculated based upon such
Qualified Transaction’s projected
amount of cash available for
dividends during the five-year
period following the closing of
such Qualified Transaction,
multiplied by 1.5%, and then
divided by four. For example, if
the Compensation Committee
estimates that such Qualified
Transaction will generate cash
available for dividends of $41.5
million during the five-year period
following the closing of such
transaction, then each executive
officer would be eligible to
receive an annual Reconfirmation
Bonus Payment of $155,625 ($41.5
million times 1.5%= $622,500/4=
$155,625).

 

Complete one or more transactions
during 2007 that are not Qualified
Transactions, but which are approved
by the Company’s Board of Directors,
but is less than $50 million (the
“Other Approved Transaction
Objective”).

The total amount of general and
administrative expenses during 2007,
excluding Participants’ bonus
compensation pursuant to this Plan,
as confirmed by the Company’s
independent auditors, does not
exceed the approved budget for
fiscal year 2007.

A maximum lump sum cash payment of
$150,000, payable within two
business days following the date on
which the Company holds its first
regularly scheduled Board of
Directors meeting in 2008.

A maximum lump sum cash payment of
$75,000, payable within two
business days following the date on
which the Company holds its first
regularly scheduled Board of
Directors meeting in 2008.

A-2

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