Document:

EXHIBIT 10.1

 

 

FOSTER WHEELER TO TAKE $76 MILLION CHARGE

AS A RESULT OF COURT DECISION

 

HAMILTON, BERMUDA,
January 18, 2005 — Foster Wheeler Ltd. (OTCBB: FWHLF) announced today that it
will take a charge to earnings in the fourth quarter as a result of an adverse
court decision in asbestos coverage allocation litigation involving certain of
its subsidiaries.  On January 10, 2005, a
New York state trial court entered an order finding that New York, rather than
New Jersey, law applies in a lawsuit regarding the allocation of liability for
asbestos-related personal injury claims among the Foster Wheeler entities and
their various insurers.

 

As a result of this
decision, Foster Wheeler will record a charge to earnings in the fourth quarter
of 2004 of approximately $76 million. 
After recording this charge, the Company continues to believe that it
will not be required to fund any asbestos liabilities from its cash flow before
2010.  However, unless this decision is
reversed on appeal, Foster Wheeler expects that it will be required to fund a
portion of its asbestos liabilities from its own cash beginning in 2010.  The amount and timing of these funding
requirements will be dependent upon, among other things, litigated or negotiated
resolution of the various disputes between Foster Wheeler and the insurers with
whom it has not yet settled.  In
addition, Foster Wheeler continues to evaluate whether the court’s decision
will have any additional impact on the calculation of its insurance asset, its
cash flow requirements, or both.  Foster
Wheeler intends to continue actively to pursue settlements with its insurers
and to manage its insurance portfolio in order to minimize its cash obligations
going forward.

 

The Company intends
promptly to file an appeal of the New York court’s decision, and believes that
it has solid grounds supporting reversal.

 

The litigation seeks
to determine the respective obligations of Foster Wheeler’s various insurers to
indemnify Foster Wheeler for asbestos-related bodily injury losses.  The substantive laws of New Jersey and New
York apply different methods of allocating insurance proceeds available to
satisfy claims triggered over multiple years. 
The application of New York, rather than New Jersey, law would result in
Foster Wheeler realizing lower insurance recoveries.

 

Since the inception of
this litigation, Foster Wheeler has calculated its estimated insurance
recoveries applying New Jersey law.  The
Company based its approach on, among other considerations, the advice of its
outside asbestos litigation counsel and its team of internal and external
asbestos advisors. In light of the court’s decision, Foster Wheeler in the
fourth quarter will calculate its estimated insurance recoveries applying New
York law, which will result in the charge to earnings described above.

 

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Notes to Editor:

 

1.               Foster
Wheeler Ltd. is a global company offering, through its subsidiaries, a broad
range of design, engineering, construction, manufacturing, project development
and management, research and plant operation services.  Foster Wheeler serves the refining, upstream
oil and gas, LNG and gas-to-liquids, petrochemicals, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries.  The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, New Jersey, USA.   For more information about Foster Wheeler,
visit our Web site at http://www.fwc.com.

 

2.               Safe
Harbor Statement

 

This
news release contains forward-looking statements that are based on management’s
assumptions, expectations and projections about the company and the various
industries within which the company operates. These include statements
regarding our expectations regarding revenues (including as expressed by our
backlog), liquidity, the outcome of litigation and legal proceedings and
recoveries from customers for claims and the costs of current and future
asbestos claims and the amount and timing of related insurance recoveries. Such
forward-looking statements by their nature involve a degree of risk and
uncertainty. The company cautions that a variety of factors, including but not
limited to the factors described under the heading “Business—Risk Factors of
the Business” in the company’s most recent annual report on Form 10-K/A
and the following, could cause the company’s business conditions and results to
differ materially from what is contained in forward-looking statements: changes
in the rate of economic growth in the United States and other major
international economies, changes in investment by the power, oil and gas,
pharmaceutical, chemical/petrochemical and environmental industries, changes in
the financial condition of

 

 

our
customers, changes in regulatory environment, changes in project design or
schedules, contract cancellations, changes in estimates made by the company of
costs to complete projects, changes in trade, monetary and fiscal policies
worldwide, currency fluctuations, war and/or terrorist attacks on facilities
either owned or where equipment or services are or may be provided, outcomes of
pending and future litigation, including litigation regarding our liability for
damages and insurance coverage for asbestos exposure, protection and validity
of patents and other intellectual property rights, increasing competition by
foreign and domestic companies, changes in financial markets, compliance with
debt covenants, monetization of certain power systems facilities,
implementation of our restructuring plan, recoverability of claims against
customers and others, changes in estimates used in critical accounting
policies. Other factors and assumptions not identified above were also involved
in the formation of these forward-looking statements and the failure of such
other assumptions to be realized, as well as other factors, may also cause
actual results to differ materially from those projected. Most of these factors
are difficult to predict accurately and are generally beyond our control. You
should consider the areas of risk described above in connection with any
forward-looking statements that may be made by us.

 

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  1-18-05

  	
   

  	
   

  
	
  Media Contact:

  	
  Maureen Bingert

  	
  908-730-4444

  
	
  Investor Contact:

  	
  John Doyle

  	
  908-730-4270Exhibit 10.1

 

January 11, 2005

 

 

Michael H. Carrel

5130 Newton Ave South

Minneapolis, MN  55419

 

 

Dear Mr. Carrel:

 

The purpose of this letter is
to confirm the understanding that we have reached regarding the terms under
which you will provide services to Vital Images, Inc.

 

You will be employed beginning
January 17, 2005 as our Part-Time Interim Chief Financial Officer. You will
work on a half-time (approximately 20 hours per week) basis At a high level,
you will assume the duties currently provided by Vital Images, Inc.’s Chief
Financial Officer, including closing the 2004 audit and on-going Sarbanes-Oxley
Section 404 work.  The foregoing
notwithstanding, the scope of your duties will be necessarily limited by the
part-time nature of the work.  You will assume
the title of Interim Chief Financial Officer of Vital Images, Inc.  In fulfilling obligations hereunder, you will
take direction from and report to the President and CEO and Board of Directors
of Vital Images, Inc.

 

Vital Images, Inc. acknowledges
that it is engaging you purely to assist the President and CEO and Board of
Directors in the management of the Company. 
This engagement shall not constitute an audit, review or compilation, or
any other type of financial statement reporting or consulting engagement that
is subject to the rules of any state or national professional bodies.

 

As agreed, we will pay you
$4,500.00 per week, payable bi-weekly. 
We will also pay you for all reasonable out of pocket expenses no later
than thirty (30) days after submission of same.

 

To the maximum extent provided
by applicable law and our bylaws, Vital Imaging, Inc. will indemnify you and
hold you harmless from and against all third-party claims, liabilities, losses,
damages and reasonable expenses as they are incurred, and pay for your defense
through counsel of your choice.  Further,
you will be covered as an insured party on all company general liability and
directors and officers liability insurance policies to the same extent as
coverage is provided to the President and CEO.

 

 

As a condition of employment,
you must sign a non-disclosure agreement. 
Please find it enclosed.  As with
all companies where intellectual property is an important asset to the company,
we are diligent and intend to protect our confidential information and
know-how, whether protected by patent, copyright or confidentiality.

 

In compliance with the
Immigration Reform and Control Act, all new employees are required to provide
proof of work eligibility and identification. In order to satisfy these
requirements, certain documents must be presented within 72 hours of your start
date. Please bring these with you on your first day of employment.

 

To accept this offer of
employment, please sign below and return one copy of this letter to Human Resources,
Attention: Cindy Edwards, in the enclosed envelope along with your signed
non-disclosure agreement.

 

 

Sincerely,

 

	
  /s/ Jay D.
  Miller

  	
   

  
	
   

  	
   

  
	
  Jay Miller

  	
   

  
	
  President
  and CEO

  

 

I accept
this offer of employment, and understand that I am to be employed by Vital
Images at-will. I understand that commencing in or continuing employment does
not affect either party’s right to terminate the employment relationship at a
later date for any reason. The relationship between me and Vital Images
continues to be at-will for the length of my employment.

 

	
  Accepted by

  	
  /s/ Michael H. Carrel

  	
   

  	
  Date

  	
  1/12/05

  	
   

  

 

 

JM:lrd

 

2

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