ARLINGTON TANKERS LTD.
Executive Retention Agreement
THIS EXECUTIVE RETENTION AGREEMENT (this “ Agreement ”) by and between Arlington Tankers
Ltd., a company incorporated in the Islands of Bermuda (the “ Company ”), and Edward Terino (the “ Executive
”) is made as of October 17, 2008.
WHEREAS, the Executive and the Company have entered into that certain Executive Change in Control
Agreement, dated as of October 24, 2005 (the “ Change in Control Agreement ”), pursuant to which the
Executive would be entitled to the following benefits if the Executive’s employment with the Company is
terminated by the Company without Cause (as defined in the Change in Control Agreement) or by the Executive
for Good Reason (as defined in the Change in Control Agreement) within 12 months following a Change in
Control (as defined in the Change in Control Agreement): (i) a payment equal to 12 months of the Executive’s
base salary, (ii) a payment equal to the highest bonus paid to the Executive in any of the three years prior to the
date of the Change in Control (as defined in the Change in Control Agreement), (iii) benefits for the Executive
and the Executive’s family for 12 months and (iv) certain outplacement services.
WHEREAS, the Executive is a “Participant” under the Company’s 2006 Bonus Plan (the “ 2006 Bonus Plan
”) pursuant to which the Executive has received an equity-based award.
WHEREAS, the Executive is a “Participant” under the Company’s 2008 Bonus Plan (the “ 2008 Bonus Plan
”) pursuant to which the Executive is eligible to be awarded cash incentive bonuses if specified performance
objectives are achieved, and such objectives are the Qualified Transaction Objective, Other Approved
Transaction Objective, and general & administrative budget achievement objective (each as defined in the 2008
WHEREAS, the Company has entered into an Agreement and Plan of Merger and Amalgamation, dated as
of August 5, 2008 (the “ Merger Agreeme