Document:

Exhibit 10.2

 

SEPARATION AND RELEASE AGREEMENT

 

This
Separation and Release Agreement (the “Agreement”)
is made between (i) David Kirwan (“Employee”)
and (ii) Fischer Imaging Corporation (the “Company”).  Employee and
the Company are referred to collectively as the “Parties” and individually as a “Party.”

 

RECITALS

 

WHEREAS,
due to the Company’s current financial state and its desire to retain and
incentivize Employee, the Company and Employee wish to redefine the employment
relationship between the Company and Employee and agree to a settlement with
respect to amounts that would be due to Employee under the Retention and
Severance Agreement dated June 29, 2005 between Employee and the Company
(the “Severance Agreement”);

 

WHEREAS,
Employee wishes to resign his employment with the Company effective December 2,
2005 and the Company and Employee intend to enter into an Independent
Contractor Agreement with the Company, effective as of December 2, 2005
(the “Independent Contractor Agreement”)

 

WHEREAS,
the Parties wish to resolve fully and finally any potential claims by Employee
against the Company and any other potential disputes between the Parties; and

 

WHEREAS,
in order to accomplish this end, the Parties are willing to enter into this
Agreement.

 

NOW
THEREFORE, in consideration of the mutual promises and undertakings contained
herein, the sufficiency of which is acknowledged by the Parties, the Parties to
this Agreement agree as follows:

 

TERMS

 

1.  Resignation and Effective Date.  Employee hereby resigns his employment
effective December 2, 2005 (the “Separation
Date”).  This Agreement shall
become effective (the “Effective Date”)
on the eighth day after Employee’s execution of this Agreement, provided that
Employee has not revoked Employee’s acceptance pursuant to Section 6.e.
below.  Employee acknowledges and agrees
all rights of Employee under the Severance Agreement are terminated as of the
Separation Date and that the payment made pursuant to Section 2.a. below
is in full satisfaction and settlement of all existing claims and entitlements
of Employee under the Severance Agreement.

 

2.  Separation Package.

 

a.             Separation
Pay.  As of the Effective Date, and
on the express condition that Employee has not rescinded this Agreement, the
Company will pay Employee a one-time lump sum payment of $90,741.34, less
applicable withholdings and deductions. 
These

 

 

payments (less applicable
taxes and other deductions) will be mailed or direct deposited to the Employee.

 

b.             Medical &
Dental Benefits.  The Employee shall
not be entitled to medical or dental benefits.

 

c.             Taxes.  If, for any reason, at any time, a claim is
made against the Company for any tax or withholding in connection with or
arising out of any payment made or consideration provided under this Section 2
of this Agreement, Employee shall respond to any such claim within thirty (30)
days of being notified by the Company, and Employee agrees to indemnify the
Company and hold it harmless against such claims, including, but not limited
to, taxes, attorneys’ fees, penalties and/or interest, which are or become due
from the Company.

 

3.  General Release.

 

a.             The Employee, for
himself, and for his affiliates, successors, heirs, subrogees, assigns,
principals, agents, partners, employees, associates, attorneys and
representatives voluntarily, knowingly and intentionally releases and
discharges (1) the Company and its predecessors, successors, parents,
subsidiaries, affiliates, and assigns, and (2) each of their respective
officers, directors, principals, shareholders, agents, attorneys, board
members, and employees from any and all claims, actions, liabilities, demands,
rights, damages, costs, expenses, and attorneys’ fees (including but not
limited to any claim of entitlement for attorneys’ fees under any contract,
statute, or rule of law allowing a prevailing party or plaintiff to
recover attorneys’ fees), of every kind and description from the beginning of
time through the Effective Date (the “Released
Claims”).

 

b.             The Released Claims
include but are not limited to those which arise out of, relate to, or are
based upon: (i) Employee’s employment with the Company or the separtion
thereof; (ii) statements, acts or omissions by the Company whether in its
individual or representative capacities, (iii) express or implied
agreements between the Parties (including, without limitation, (iv) any
stock option grant, agreement, or plan (except as provided herein), (v) the
Severance Agreement, (vi) all state and federal statutes, including but
not limited to claims based on race, sex, disability, age, or any other
characteristic of Employee under the Americans with Disabilities Act, the Older
Worker’s Benefit Protection Act, the Age Discrimination in Employment Act, the
Fair Labor Standards Act, the Equal Pay Act, Title VII of the Civil Rights Act
of 1964 (as amended), the Employee’s Retirement Income Security Act of 1974,
the Rehabilitation Act of 1973, and/or the Worker Adjustment and Retraining
Notification Act, (vii) any federal and state common law, and (viii) any
claim which was or could have been raised by Employee.

 

4.  Unknown Facts.  This Agreement includes claims of every
nature and kind, known or unknown, suspected or unsuspected.  Employee hereby acknowledges that Employee
may hereafter discover facts different from, or in addition to, those which
Employee now knows to be or believes to be true with respect to this Agreement,
and Employee agrees that this Agreement and the releases contained herein shall
be and remain effective in all respects, notwithstanding such different or
additional facts or the discovery thereof.

 

2

 

5.  No Admission of Liability.  The Parties agree that nothing contained
herein, and no action taken by any party hereto with regard to this Agreement,
shall be construed as an admission by any party of liability or of any fact
that might give rise to liability for any purpose whatsoever.

 

6.  Representations and Warranties.  Employee represents and warrants as follows:

 

a.                                       He
has read this Agreement and agrees to the conditions and obligations set forth
in it;

 

b.             He
has been advised to consult with an attorney prior to executing this Agreement
and voluntarily executes this Agreement after having had full opportunity to
consult with counsel and without being pressured or influenced by any statement
or representation of any person acting on behalf of the Company, including its
attorneys, officers, shareholders, directors, employees and agents;

 

c.             He
has had at least twenty-one days in which to consider the terms of this
Agreement.  In the event that Employee
executes this Agreement in less time, it is with the full understanding that he
had the full twenty-one days if he so desired and that he was not pressured by
the Company or any of its representatives or agents to take less time to
consider the Agreement.  In such event,
Employee expressly intends such execution to be a waiver of any right he had to
review the Agreement for a full twenty-one days;

 

d.             He
has no knowledge of the existence of any lawsuit, charge, or proceeding
initiated by him against the Company or any of its officers, directors, agents,
or employees arising out of or otherwise connected with any of the matters
herein released;

 

e.             He
has been informed and understands that (i) to the extent that this
Agreement waives or releases any claims he might have under the Age
Discrimination in Employment Act, he may rescind his waiver and release within
seven calendar days of his execution of this Agreement, and (ii) any such
rescission must be in writing and hand delivered to the Company addressed as
follows:

 

Fischer
Imaging Corporation

Attn:
Gail Schoettler

12300
North Grant Street

Denver,
CO 80241

 

and

 

f.              He
has full and complete legal capacity to enter into this Agreement.

 

3

 

7.  Severability.  If any provision of this Agreement is held
illegal, invalid, or unenforceable, such holding shall not affect any other
provisions hereof.  In the event any
provision is held illegal, invalid or unenforceable, such provision shall be
limited so as to effect the intent of the parties to the fullest extent
permitted by applicable law.  Any claim
by Employee against the Company shall not constitute a defense to enforcement
by the Company of this Agreement.

 

8.  Enforcement.  The Release contained herein does not release
any claims for enforcement of the terms, conditions or warranties contained in
this Agreement.  The Parties shall be
free to pursue any remedies available to them to enforce this Agreement subject
to Section 10.

 

9.  Entire Agreement.  With the exception only of the Independent
Contractor Agreement and as otherwise set forth herein, this Agreement
constitutes the entire agreement between the Parties.  This Agreement supersedes any and all prior
agreements (except those described in the first sentence of this Section) and
cannot be modified except in writing signed by all Parties.

 

10.  Venue, Applicable Law and Submission to
Jurisdiction.  This Agreement shall
be interpreted and construed in accordance with the laws of the State of
Colorado, without regard to its conflicts of law provisions.  Any disputes arising under this Agreement or
by any asserted breach of it, or from the employment relationship between the
Company and the Employee, shall be litigated in the state or federal courts in
Colorado.

 

11.  Counterparts.  This Agreement may be executed in
counterparts.

 

12.  Non-Disparagement.  Employee agrees not to make to any person any
statement that disparages the Company or reflects negatively upon the Company,
including, without limitation, statements regarding the Company’s financial
condition, business practices, employment practices, or its predecessors,
successors, parents, subsidiaries, officers, directors, employees, or
affiliates.  The Company agrees not to
make to any person any statement that disparages Employee or reflects
negatively on Employee.

 

13.  Assignment.  The Company may assign its rights under this
Agreement.  Employee cannot assign
Employee’s rights under this Agreement without the written consent of the
Company.  No other assignment is
permitted except by written permission of the Parties.

 

* * * * *

 

4

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement on the dates written
below.

 

 

	
  EMPLOYEE

  	
  FISCHER IMAGING
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ David Kirwan

  	
   

  	
  /s/ Gail
  Schoettler

  	
   

  
	
  David Kirwan

  	
  Name: Gail
  Schoettler

  
	
   

  	
  Title: Chair of
  the Board

  
	
   

  	
   

  
	
   

  	
   

  
	
  December 14,
  2005

  	
   

  	
  December 14,
  2005

  	
   

  
	
  Date

  	
  DateExhibit 10.3

 

INDEPENDENT CONTRACTOR AGREEMENT

 

THIS
INDEPENDENT CONTRACTOR AGREEMENT (“Agreement”) is made and entered into as of
the 2nd day of December, 2005 (“Effective
Date”), by and between Fischer Imaging Corporation, a Delaware corporation (the
“Company”), and Steven L. Durnil (“Independent Contractor”).

 

WITNESSETH:

 

WHEREAS,
the Company wishes to engage Independent Contractor as a consultant and
Independent Contractor wishes to accept such engagement upon the terms and
conditions hereinafter provided.

 

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

 

1.             Engagement; Independent Contractor.  Company hereby engages Independent Contractor
as a consultant and Independent Contractor hereby accepts such engagement.  Independent Contractor acknowledges and
agrees that he is acting as an independent contractor and not as an employee of
the Company.  The manner of and means by
which Independent Contractor executes and performs his obligations hereunder
are to be determined by Independent Contractor in his reasonable discretion.

 

2.             Representations and
Warranties.  Independent Contractor represents, warrants,
and acknowledges as follows:

 

(a)           The Company only retains the right to
direct the results achieved by Independent Contractor.  The Company does not retain the right to
control the manner and means by which these results are to be accomplished, nor
will the Company establish a quality standard for Independent Contractor.

 

(b)           Independent Contractor shall determine
when, where, and how he is to perform Services under this Agreement.  There shall be no set hours during which
Independent Contractor must work.  There
shall be no requirement that Services be performed upon the premises of the
Company.  The Company retains no right of
control in these areas.

 

(c)           The Company will neither provide nor
require training for Independent Contractor.

 

(d)           Independent Contractor will remain
directly responsible for the Services performed and will ensure that the work
meets the specifications set forth by the Company.

 

(e)           Independent Contractor shall be paid in
accordance with Section 5 below.

 

 

3.             Effective Date and Term.  This Agreement shall be effective as of the
Effective Date and shall continue in force thereafter until March 31,
2006, unless (i) extended for an additional period by the parties’ mutual
written agreement, and/or (ii) earlier terminated pursuant to Section 7.

 

4.             Services.  Independent Contractor shall provide the
consulting services described on Schedule A (“Services”) at the
direction of and in consultation with the Company. Independent Contractor agrees
to faithfully, promptly and to the best of his ability perform such
Services.  The parties expect that the
performance of the Services will require at least forty (40) hours per week.
Independent Contractor agrees to provide the Company from time to time with
reports, when requested and in the form requested by the Company, updating the
Company as to the status of matters being handled by the Independent
Contractors.

 

5.                                       Compensation.

 

(a)           Consulting
Fees.  Company shall pay Independent
Contractor a consulting fee for the Services as set forth on Schedule B.

 

(b)           Payment.  The Company shall pay consulting fees to
Independent Contractor two weeks in advance of Services performed.  Independent Contractor shall provide the
Company with a written monthly invoice setting forth the consulting fees, with
a written description of the work performed.

 

(c)           Taxes.  No income tax or payroll tax of any kind
shall be withheld or paid by the Company on behalf of Independent Contractor
for any payment under this Agreement, except as may be required by law for
payments to independent contractors.  Independent Contractor shall be responsible for all
taxes and similar payments arising out of any activities contemplated by this
Agreement, including without limitation, federal, state, and local income tax,
social security tax (FICA), self employment taxes, unemployment insurance
taxes, and all other taxes, fees, and withholdings.  Independent Contractor
acknowledges that he is solely responsible for the payment of such taxes, and
Independent Contractor agrees to indemnify and hold Company harmless from and
against any and all liability resulting from Independent Contractor’s failure
to pay such taxes.

 

6.             Benefits.  Independent Contractor is not an employee of
the Company and, therefore, shall not be entitled to any benefits, coverages,
or privileges, including, without limitation, social security, unemployment
compensation insurance, workers’ compensation insurance, medical benefits,
vacation pay, or pension payments made available to employees of the Company.

 

2

 

7.             Insurance Coverages. 
Independent Contractor solely shall be responsible for all of his own
insurance and shall at all times maintain such types and amounts of insurance
coverage as is acceptable or required by the Company.  No workers’ compensation insurance or unemployment compensation
insurance will be obtained by the Company on behalf of Independent
Contractor.  Independent Contractor
solely shall be responsible for obtaining unemployment compensation insurance
and workers’ compensation insurance for Independent Contractor, and Independent
Contractor solely shall be responsible for complying with all applicable
workers’ compensation and unemployment compensation laws.

 

8.             Termination.

 

(a)           The
Company or Independent Contractor may terminate this Agreement upon twenty (20)
days prior written notice to the other party.

 

(b)           The
Company may terminate this Agreement immediately upon written notice to
Independent Contractor if Independent Contractor is in breach of this
Agreement.

 

9.             Confidential Information.  Independent Contractor acknowledges that he
possesses and in the course of his engagement with the Company and performance
of Services hereunder, will learn additional information regarding the Company,
its business and properties that is of
special and unique value to the Company, its business, trade secrets,
technology, operations, books and records and any other matters that are not
commonly known and which are proprietary to the Company and its affiliates
(collectively, the “Confidential Information”). Independent Contractor agrees
to use the Confidential Information only for purposes of this Agreement, and
that all other uses or disclosures of the Confidential Information are strictly
prohibited.  Upon termination of his
engagement hereunder, or at any time upon request of the Company, Independent
Contractor shall surrender to the Company all papers, documents, writings and other
property produced by him or coming into his possession by or through his
engagement hereunder and relating to Confidential Information. Independent
Contractor agrees that all such materials will at all times remain the property
of the Company.  The agreements in this Section 9
shall survive the termination of this Agreement for a period of two (2) years.

 

10.           Company Policies/ Compliance with Law.  Independent Contractor agrees to comply
with the written policies of the Company and applicable law in the performance
of the Services.  The Company shall
promptly notify Independent Contractor of any modifications to its policies.

 

11.           Indemnification.  The Company shall indemnify, defend and hold
harmless Independent Contractor for, from and against any claims, damages,
costs, liabilities and demands resulting from Independent Contractor’s
performance of the Services (whether arising out of strict liability or
otherwise) to the full extent permitted by, and in the manner permissible
under, the laws of the State of Delaware. 
The foregoing indemnity provision shall survive the expiration or any
earlier termination of this Agreement. 
The Company will use its best efforts to maintain directors’ and
officers’ liability insurance for the benefit of Independent Contractor.

 

3

 

12.           Enforcement.  The parties hereto agree that money damages
would be an inadequate remedy for any breach by Independent Contractor of Section 9.  Therefore, in the event of a breach or
threatened breach of Section 9 of this Agreement, the Company will be
entitled to injunctive relief, in addition to other rights and remedies
existing in its favor at law or in equity in order to enforce, or prevent any
violations of, the provisions hereof (without posting a bond or other
security).

 

13.           Notices.  Any notice provided pursuant to this
Agreement or applicable law must be in writing and must be delivered to the
recipient by certified or registered mail, a nationally recognized overnight
courier, or personal delivery to the address below indicated:

 

If to Independent
Contractor:

 

Steven
L. Durnil

5036
Sawhill Dr.

Fort
Collins, CO 80529

 

Tel:  (970) 267-9575

Fax:

 

If to the Company:                                                                                             Fischer
Imaging Corporation

12300
North Grant Street

Denver,
Colorado  80241

Attn:  Gail Schoettler

 

Tel:  (303) 452-6800

Fax:  (303) 252-4256

 

14.           Counterparts.  This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same document.

 

15.           Miscellaneous.  Neither party may assign its rights or
obligations under this Agreement.  This
instrument is the sole and entire agreement between the parties as to the
subject matter hereof and supersedes all prior oral or written arrangements or
agreements.  None of the terms or provisions
of this Agreement may be altered, amended, modified, or discharged except by an
agreement in writing executed after the date of this Agreement by the parties
hereto.  The waiver of any breach or
default under any terms of this Agreement shall not be construed to be the
waiver of a subsequent breach or default under this Agreement.

 

4

 

16.           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Colorado.

 

IN WITNESS WHEREOF, each of the parties
hereto has executed this Agreement as of the date and year first above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  	
  FISCHER IMAGING
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gail
  Schoettler

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gail Schoettler

  
	
   

  	
   

  	
  Title:

  	
  Chair of the Board
  of Directors

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CONSULTANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Steven L.
  Durnil

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Steven L. Durnil

  
						

 

5

 

SCHEDULE A

 

SERVICES

 

Independent
Contractor shall serve as President and Chief Executive Officer of the Company and shall perform the
duties and obligations of such office and such other tasks and duties as are
reasonably requested from time to time by the Board of Directors.

 

6

 

SCHEDULE B

 

COMPENSATION

 

Independent
Contractor shall be paid a fixed weekly fee of $5,900.

 

7

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