Document:

Exhibit 10.17

 

EXECUTION  COPY

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

AGREEMENT
dated as of May 15, 2008 between InSight Health Services Corp., a Delaware
corporation (“Company”), and Bernard O’Rourke (“Executive”).  Company is a wholly owned subsidiary of InSight
Health Services Holdings Corp., a Delaware corporation (“Parent”).

 

Company
wishes to continue to employ Executive, and Executive wishes to accept such
continued employment, in each case subject to the terms and conditions
hereof.  Accordingly, Company and
Executive hereby agree as follows:

 

I.                                         TERM

 

Commencing
with the effective date set forth above, Executive is to be employed by Company
on the terms and conditions set forth in this Agreement, until such time as
Executive or the Company terminate this Agreement in accordance with its terms.

 

II.                                     EMPLOYMENT

 

SECTION 2.01  Employment by Company.  Company employs Executive to render full time
services as Company’s Executive Vice President and Chief Operating Officer and
in such other capacities as the President and Chief Executive Officer (“CEO”)
may assign and, in connection therewith, to report to the CEO and perform such
duties as are reasonably consistent with Executive’s position and as the CEO
shall direct. .Executive agrees to perform such duties as are reasonably
consistent with the duties normally pertaining to the office to which Executive
has been elected or appointed, subject always to the direction of the CEO and
to conduct himself in a professional and diligent manner.  Subject to Section 5.01 hereof,
Executive’s expenditure of reasonable amounts of time for personal business,
charitable or professional activities will not be deemed a breach of Executive’s
undertaking to provide full time services hereunder as long as such activities
do not interfere with Executive’s rendering of such services.

 

SECTION 2.02  Acceptance of Employment
by Executive.  Executive
accepts such employment and shall render the services required by this
Agreement to be rendered by Executive. 
Executive shall also serve on request during all or any part of the term
of this Agreement as an officer or director of any of Company’s subsidiaries or
affiliates without any compensation therefor other than as specified in this
Agreement.

 

SECTION 2.03  Place of Employment.  Executive’s principal place of employment
shall be located at 26250 Enterprise Court, Suite 100, Lake Forest,
California 92630. In connection therewith, Executive shall move his principal
residence from the State of New York to the State of California by no later
than January 31, 2009.  Thereafter,
in the event that the principal place of employment of Executive is relocated
to a site that is more than 80 miles from Executive’s principal residence in
the State of California, subject to Section 4.05(a) hereof, Company
may require Executive to relocate Executive’s principal residence to within 80
miles of such site.  Notwithstanding the
foregoing, Executive acknowledges that the duties to be performed by

 

 

Executive
hereunder are such that Executive may be required to travel extensively,
principally within the United States, in connection with Company Business (as
defined below).

 

III.                                 COMPENSATION

 

SECTION 3.01  Salary, Bonus, Life
Insurance.  As
compensation for the services to be rendered pursuant to this Agreement,
Company shall pay Executive, and Executive shall accept, a salary of $265,000
per annum (“Annual Salary”), payable in accordance with the payroll policies of
Company for senior executives as from time to time in effect, less such amounts
as may be required to be withheld by applicable federal, state and local law
and regulations (the “Payroll Policies”). 
Effective upon the date of Executive’s relocation of his family and his
principal residence from the State of New York to the State of California, Executive
will receive a three percent (3%) increase in his Annual Salary (“Relocation
Increase”); provided, however, if Executive has received an increase in Annual
Salary in connection with the Company’s annual common review date (“Interim
Increase”), then such Relocation Increase shall be reduced by the amount of
such Interim Increase.

 

In
addition to the Annual Salary, ,effective for the fiscal year ending June 30,
2009 , Executive shall be eligible to receive an annual bonus of up to 45%, or
such percentage as shall be approved by the Board of Directors of the Company (“Board”),
of Executive’s Annual Salary (“Bonus”), which shall be based upon Parent
achieving the target financial goals or other goals (“Target Goals”) approved
by the Board for the then-current fiscal year. 
The Target Goals shall be set forth in a budget prepared by Executive
and Company management and approved by the Board, and shall, as applicable, be
set at the plan level applicable to the other executive officers of Company.  The Bonus is
payable, if earned, promptly following the completion of Parent’s year-end
audit for such year and delivery of a certification by Executive to the Board,
certifying the results for the year and the calculation of any Bonus so
payable.  For the fiscal year ending June 30,
2009, the Target Goals shall be set forth in a budget prepared by
Company management and approved by the Board
prior to August 1, 2008.

 

Company
shall purchase and maintain in full force and effect at all times during the
term of this Agreement a policy of term insurance on the life of Executive
payable to such beneficiary or beneficiaries as Executive may designate in an
amount equal to three (3) times the amount of the Annual Salary; provided,
Executive shall comply with the issuing insurance company’s requirements for
issuance of the policy.  Executive shall
provide reasonable cooperation with the Company and its insurance agency in the
event the Company decides to obtain a “key man” insurance policy on Executive
for the benefit of Company.

 

SECTION 3.02  Performance Review.
Executive’s performance shall be reviewed and evaluated by the Board annually
during the term of this Agreement.

 

SECTION 3.03  Participation in Employee
Benefit Plans.  Executive
shall be entitled during the term of this Agreement, if and to the extent
eligible, to participate in any life insurance, medical, health and accident
and disability plan or program, pension plan or similar benefit plan of
Company, which may be available to senior executives of Company generally, on
the same terms as such other executives.

 

 

SECTION 3.04  Business
Expenses.  Subject to such policies as may from time to
time be established by Company for senior executives of Company generally,
Company shall pay or reimburse Executive for all reasonable business expenses
actually incurred and paid by Executive during the term of this Agreement in
the performance by Executive of services under this Agreement, upon
presentation of expense statements or vouchers or such other supporting information
as Company may reasonably require.

 

SECTION 3.05  Automobile Allowance.  Company shall pay Executive an automobile
allowance of $750 per month, and shall reimburse Executive for expenses of
operating such car consisting of gas, insurance and registration, in such
amount and in accordance with and subject to such policies as may from time to
time be established and amended by the Board.

 

SECTION 3.06  Vacation.  Executive shall be entitled to three (3) weeks
of paid vacation each year during the term of this Agreement which shall be
taken at a time or times which do not unreasonably interfere with Executive’s
duties hereunder and in accordance with Company policy.  Executive may not accumulate any unused
vacation in excess of six (6) weeks at any one time.

 

SECTION 3.07  Equity
Award.  Executive shall be entitled to participate in
Parent’s equity award program, on the terms and conditions that are applicable
to the other executive officers of Company, as such award program may be
determined by the board of directors of Parent (“Parent Board”).  The Parent Board currently expects to award
Executive non-statutory stock options to acquire shares of Parent Common Stock
(“Options”).  The Options will be subject
to performance-based vesting, which will occur upon a successful refinancing
(to be defined in the Option grant agreement) of the currently outstanding
issue of $315,000,000 Senior Floating Rate Notes.  The successful refinancing will include,
among other items, the absence of any dilution to the then-existing holders of
outstanding Parent Common Stock.  The
exercise price of the Options will be set on the date of actual grant,
currently expected to occur not later than May 30, 2008, and will be
calculated as the 5-day average closing price ending on the date of grant, but
not less than the closing price on the date of grant.

 

SECTION 3.08   Relocation Expenses.  Company shall pay expenses relating to
Executive’s relocation of his principal residence from the State of New York to
the State of California up to a maximum of $35,000 (“Relocation Expenses”).  Such Relocation Expenses shall include those
items on the Relocation Guidelines attached hereto as Annex A.

 

In
addition, Company will pay Executive’s income taxes related to the inclusion in
Executive’s W-2 income of the Relocation Expenses or the Company’s
reimbursement thereof.

 

IV.                                TERMINATION

 

SECTION 4.01  Termination upon Death.  If Executive dies during the term of this
Agreement, this Agreement shall terminate as of the date of Executive’s death.

 

 

SECTION 4.02  Termination upon
Disability.  Executive’s
employment may be terminated by Company due to Executive’s permanent and total
disability (within the meaning of Section 22(e)(3) of the Internal Revenue Code
of 1986, as amended) (“Disability”), so that Executive is unable substantially
to perform Executive’s services required by this Agreement to be rendered by
Executive for (i) a period of three (3) consecutive months or (ii) for shorter
periods aggregating three (3) months during any twelve (12) month period.  Company may, at any time after the last day
of the three (3) consecutive months of Disability or the day on which the
shorter periods of Disability equal an aggregate of three (3) months, by 30
days’ written notice to Executive, terminate this Agreement and Executive’s
employment hereunder.  Any such
determination of Disability shall be made by a physician chosen by a majority
of the members of the Board in its sole discretion.  Nothing in this Section 4.02 shall be
deemed to extend the term of this Agreement or of Executive’s employment
hereunder, beyond the term specified in Article I hereof.

 

SECTION 4.03  Termination for Cause.  If the Board determines that Cause (as
defined below) exists, it may remove Executive for Cause and terminate this
Agreement and the term of Executive’s employment hereunder on the date
specified in written notice to Executive. 
If terminated for Cause, Executive shall have no right to receive any
monetary compensation or benefit hereunder with respect to any period after the
date specified in such notice.  Such
notice may also terminate Executive’s right to enter Company’s premises.  For purposes of this Agreement, the term “Cause”
means any of the following:

 

(a)           Executive has been convicted or pled
guilty or no contest to any (i) crime or offense which is likely to have
an adverse impact on the business operations, 
financial condition, or overall business reputation of Parent, Company
or any of their subsidiaries, or (ii) felony offense;

 

(b)           Executive has committed or attempted
to commit fraud or embezzlement;

 

(c)           Executive has breached any of
Executive’s obligations under this Agreement and Executive has failed to cure
the breach within 30 days following receipt of written notice of such breach
from Company or Executive engages in intentional and repeated actions
specifically and solely for the purpose of causing his termination by the
Company;

 

(d)           Parent or Company, after reasonable
investigation, finds that Executive has violated or attempted to violate  any material 
written policies and procedures of Parent or Company, including but not
limited to, policies and procedures pertaining to harassment and
discrimination;

 

(e)           Executive has failed to obey a
specific written direction from the Board (unless such specific written
instruction represents an illegal act), provided that (i) such failure
continues for a period of 30 days after receipt of such specific written
direction, and (ii) such specific written direction includes a statement
that the failure to comply therewith will be a basis for termination hereunder;
or

 

 

(f)            any
willful act or omission on Executive’s part which is injurious in any material
respect to the business operations, financial condition or business reputation
of Parent or Company or any of their subsidiaries.

 

SECTION 4.04  Termination in Discretion
of Company.  Company may,
at any time, on 15 days’ written notice to Executive, terminate this Agreement
and the term of Executive’s employment hereunder, and Executive thereafter
shall  receive all monetary compensation
and benefits due through the termination date specified in the notice, as well
as rights to receive monetary compensation or benefits hereunder in respect of
any period after the effective date of termination as are specifically provided
in Section 4.07 hereof.  Such notice
may also terminate Executive’s right to enter Company’s premises effective
immediately.

 

SECTION 4.05  Voluntary Termination for
Good Reason.  During the
period commencing upon the occurrence of Good Reason (as defined below) and
continuing for 30 days thereafter, Executive shall have the right to terminate
Executive’s employment for Good Reason (as defined below), whereupon Executive
shall become entitled to receive compensation as provided in Section 4.07
hereof.  The failure of Executive to
deliver such notice with the 30-day time period shall constitute agreement by
Executive to such event and eliminate the ability of Executive to terminate
this Agreement for such event. 
Termination by the Executive pursuant to the preceding sentence shall be
effective upon 30 days written notice to Company.  For purposes of this Agreement, “Good Reason”
means any of the following:

 

(a)           the movement by Company, without
Executive’s consent, of Executive’s principal place of employment to a site
that is more than 80 miles from Executive’s principal residence in the State of
California;

 

(b)           a reduction by Company, without
Executive’s consent, in Executive’s Annual Salary or bonus opportunity, as they
exist on the date hereof; or

 

(c)           a failure by Company to comply with
any material provisions of this Agreement which has not been cured within 30
days after notice of such noncompliance has been given by Executive to Company,
or if such failure is not capable of being cured in such time, for which a cure
shall not have been diligently initiated by Company within such 30 day period.

 

SECTION 4.06  Voluntary Termination
Without Good Reason.  Executive
shall have the right to terminate this Agreement upon 30 days’ written notice
to Company and, upon such termination, Executive shall not have the right to
receive any monetary compensation or benefit hereunder with respect to any
period after the date specified in such notice.

 

SECTION 4.07  Compensation on
Termination.

 

(a)           If the term of Executive’s employment
hereunder is terminated pursuant to Section 4.01 hereof, Company shall pay
to the executors or administrators of Executive’s estate or Executive’s heirs
or legatees (as the case may be) all compensation accrued and unpaid up to the date
of Executive’s death.  If the term of
Executive’s employment hereunder is terminated 

 

 

pursuant
to Section 4.02 hereof, Company shall pay to Executive all compensation
accrued and unpaid up to the date of such termination.

 

(b)           If the term of Executive’s employment
hereunder is terminated pursuant to Section 4.04, 4.05, or 4.07(c) hereof,
Company shall (i) pay to Executive all compensation accrued and unpaid up
to the effective date of termination; (ii) pay to Executive additional
compensation in an amount equal to twelve (12) months of compensation at the
monthly Annual Salary rate then in effect, payable in accordance with the
Payroll Policies; and (iii) maintain, at Company’s expense, in full force
and effect, for Executive’s continued benefit until the earlier of (x) twelve
(12) months after the effective date of termination or (y) commencement of
Executive’s benefits pursuant to employment with a new employer, all life
insurance, medical and health plans or programs, in which Executive was participating
immediately prior to the effective date of termination; provided, that
Executive’s continued participation is permissible under the general terms and
provisions of such plans or programs and provided further, that Company shall
be entitled to amend or terminate any employee benefit plans which are
applicable generally to Company’s employees. 
In the event that Executive’s participation in any such plan or program
is prohibited, Company shall arrange to provide Executive with benefits
substantially similar to those which Executive was entitled to receive under
such plans or programs.  Any payments
made pursuant to this Section 4.07 shall be reduced by such amounts as are
required by law to be withheld or deducted.

 

(c)           Notwithstanding
any provision herein to the contrary, if Executive is terminated by Company
without Cause, or Executive terminates Executive’s employment for Good Reason,
within twelve (12) months following a Change in Control (as defined herein)
which occurs after the Effective Time, Executive shall be entitled to the
payments and benefits set forth in Section 4.07(b).  For purposes hereof, a “Change in Control”
shall be deemed to have occurred if (i) any person, or any two or more
persons acting as a group, and all affiliates of such person or persons (a “Group”),
who prior to such time beneficially owned less than 50% of the then outstanding
capital stock of Company or Parent, shall acquire shares of Company’s or Parent’s
capital stock in one or more transactions or series of transactions, including
by merger, and after such transaction or transactions such person or group and
affiliates beneficially own 50% or more of Company’s or Parent’s outstanding
capital stock, or (ii) Company or Parent shall sell all or substantially
all of its assets to any Group which, immediately prior to the time of such
transaction, beneficially owned less than 50% of the then outstanding capital
stock of Company or Parent.

 

(d)           The compensation rights provided for
Executive in this Section 4.07 shall be Executive’s sole and exclusive
remedies with respect to Section 4.01, 4.02, 4.04, 4.05, or 4.07(c) hereof,
and Executive, the executors or administrators of Executive’s estate or
Executive’s heirs or legatees (as the case may be) shall not be entitled to any
other compensation, damages or relief in connection therewith.

 

(e)           In exchange for, and as a condition
to receiving, the compensation rights provided to Executive in this Section 4.07,
Executive will be required to execute a waiver and release substantially in the
form of Exhibit A attached hereto, and the failure to execute such waiver
and 

 

 

release
shall be a basis for the Company not paying any amounts otherwise due to
Executive hereunder.

 

V.                                    CERTAIN COVENANTS OF EXECUTIVE

 

SECTION 5.01  Covenants Against Unfair
Competition.

 

(a)           Acknowledgments.  Executive acknowledges that, as of the date
hereof:  (i) the principal business
of Company and its affiliates is the provision of diagnostic imaging, treatment
and related management services through a network of mobile magnetic resonance
imaging (“MRI”), computed tomography (“CT”), positron emission tomography (“PET”)
and PET/CT facilities, fixed-site MRI and PET and PET/CT facilities and
multi-modality centers, at times, together with other healthcare providers,
utilizing the related equipment and computer programs and “software” and
various corporate investment structures (“Company Business”); (ii) Company
Business is primarily national in scope; (iii) the industry is highly
competitive; and (iv) Executive’s duties hereunder will cause Executive to
have access to and be entrusted with various trade secrets not readily
available to the public or competitors, consisting of business accounts, lists
of customers and other business contacts, information concerning Company’s
relationships with actual or potential clients or customers and the needs or
requirements of such clients or customers, budgets, business and financial
plans, employee lists, financial information, artwork, designs, graphics,
marketing plans and techniques, business strategy and development, know-how or
other matters connected with Company Business, computer software programs and
specifications (some of which may be developed in part by Executive under this
Agreement), which items are owned exclusively by Company and used in the
operation of Company Business (“Trade Secrets”).  Notwithstanding the foregoing, the parties
agree that the term “Trade Secrets” shall not include information which (i) is
or becomes generally available to the public, without violation of any
obligation of confidentiality by Executive, (ii) is or becomes available
from a third party on a nonconfidential basis, provided that such third party
is not bound by a confidentiality agreement concerning the Trade Secrets and (iii) is
or has been independently acquired or developed by Executive without violating
the provisions of this Section.

 

Executive
further acknowledges that the Trade Secrets will be disclosed to Executive or
obtained by Executive and received in confidence and trust for the sole purpose
of using the same for the sole benefit of Company Business.  Executive also acknowledges that such Trade
Secrets are valuable to Company, of a unique and special nature, and important
to Company in competing in the marketplace.

 

During
and after the term of this Agreement (otherwise than in the performance of this
Agreement), without Company’s prior written consent, Executive shall not
divulge or use all or any of the Trade Secrets to or for any person or entity
except (i) for the benefit of Company and as necessary to perform
Executive’s services under this Agreement; and (ii) when required by law,
and then only after consultation with Company. 
In the event that Executive, becomes or is legally compelled (whether by
deposition, interrogatories, request for documents, subpoena, civil
investigative demand or similar process) to disclose any Trade Secrets,
Executive shall provide Company with prompt, prior written notice of such
requirement so that Company may seek a protective order or other appropriate
remedy and/or waive compliance with the provisions of this 

 

 

Section.  Executive agrees that Executive’s obligations
under this Section 5.01 shall be absolute and unconditional.

 

(b)           Breach.  Executive understands and agrees that Executive’s
employment with Company may be terminated if Executive breaches this Agreement
or in any way divulges such Trade Secrets. 
Executive further understands and agrees that Company may be irreparably
harmed by any violation or threatened violation of this Agreement and,
therefore, Company may be entitled to injunctive relief to enforce any of the
provisions contained herein, without the necessity to post bond.

 

(c)           Non-Compete.  During the period of Executive’s employment
Executive will not directly or indirectly either as an employee, employer,
consultant, agent, principal, partner, stockholder, corporate officer,
director, or in any other individual or representative capacity, engage or
participate in any activity or business which Company shall determine in good
faith to be in competition in any substantial way with Company Business within
any metropolitan area in the United States or elsewhere in which Company is
then engaged in Company Business.  The
parties acknowledge that in California and some states post-employment
non-compete clauses may be generally unenforceable, but that other states and
jurisdictions permit such agreements. 
Executive hereby agrees that Executive will not directly or indirectly,
either as an employee, employer, consultant, agent, principal, partner,
stockholder, corporate officer, director, or in any other individual or
representative capacity, engage or participate in any activity or business
which Company shall determine in good faith to be in competition in any substantial
way with Company Business as conducted at the effective date of termination of
Executive’s employment by Company for or a period of twelve (12) months after
the termination of Executive’s employment and that this Section will be
enforceable to the greatest extent of the law.

 

(d)           No Solicitation of
Employees.  During
Executive’s employment and for a period of twelve (12) months after the
termination of Executive’s employment, Executive will not, either directly or
indirectly, either alone or in concert with others, solicit or entice or
participate in the solicitation or attempt to solicit or in any manner
encourage employees of Company to leave Company or work for anyone that is in
competition in any substantial way with Company Business (which in the case of
the period following Executive’s termination, shall mean Company Business as
conducted as of the effective date of termination of Executive’s employment
with Company); provided, however, that the public listing, advertising or
posting of an available position shall not constitute solicitation or an
attempt to solicit hereunder and this subsection (d) shall not
preclude Executive from hiring an individual pursuant thereto.

 

(e)           No Solicitation of
Customers.  Executive will
not during the course of Executive’s employment, or for twelve (12) months
thereafter, engage in any unfair competition with Company, or either directly
or indirectly call on, solicit, or take away, or attempt to call on, solicit or
take away any of Company’s customers on behalf of any business that is in
competition in any substantial way with Company.  During Executive’s employment, Executive
agrees not to plan or otherwise take any preliminary steps, either alone or in
concert with others, to set up or engage in any business enterprise that would
be in competition with Company Business. 
In the event of the termination of Executive’s employment and for a
period of twelve (12) months thereafter, Executive will not accept any
employment or engage in any activities which Company 

 

 

shall
determine in good faith to be competitive with Company, if the fulfillment of
the duties of the competitive employment or activities would inherently require
Executive to reveal Trade Secrets to which Executive has access or learned
during Executive’s employment on behalf of any business that is in competition
in any substantial way with Company.

 

(f)            Return of Company Property.  In the event of the termination of Executive’s
employment, Executive will deliver to Company all devices, records, sketches, reports,
proposals, files, customer lists, mailing or contact lists, correspondence,
computer tapes, discs and design and other document and data storage and
retrieval materials (and all copies, compilations and summaries thereof),
equipment, documents, duplicates, notes, drawings, specifications, research
tape or other electronic recordings, programs, data and other materials or
property of any nature belonging to Company or relating to Company Business,
and Executive will not take with Executive or allow a third party to take, any
of the foregoing or any reproduction of any of the foregoing.  Company property includes personal property,
made or compiled by Executive, in whole or in part and alone or with others, or
in any way coming into Executive’s possession concerning Company Business or
other affairs of Company or any of its affiliates.

 

(g)           Disclosure and Assignment
of Rights.  (i)  Executive
shall promptly disclose and assign to Company and its affiliates or its
nominee(s), to the maximum extent permitted by Section 2870 of the
California Labor Code, as it may be hereafter amended from time to time, all
right, title and interest of Executive in and to any and all ideas, inventions,
discoveries, secret processes and methods and improvements, together with any
and all patents that may be issued thereon in the United States and in all
foreign countries, which Executive may invent, develop or improve, or cause to
be invented, developed or improved, during the term of this Agreement or which
are (1) conceived and developed during normal working hours, and (2) related
to the scope of Company Business.  As
used in this Agreement, the term “invent” includes “make”, “discover”, “develop”,
“manufacture” or “produce”, or any of them; “invention” includes the phrase “any
new or useful original art, machine, methods of manufacture, process,
composition of matter, design, or configuration of any kind”; “improvement”
includes “discovery” or “production”; and “patent” includes “Letters Patent”
and “all the extensions, renewals, modifications, improvements and reissues of
such patents”.

 

                (ii)           Executive shall disclose immediately to duly authorized
representatives of Company any ideas, inventions, discoveries, secret processes
and methods and improvements covered by the provisions of paragraph (i) above,
and execute all documents reasonably required in connection with the
application for an issuance of Letters Patent in the United States and in any
foreign country and the assignment thereof to Company and its affiliates or its
nominee(s).

 

SECTION 5.02  Rights and Remedies Upon
Breach.  If Executive
breaches, or threatens to breach, in any material respect any of the provisions
of Section 5.01 hereof (“Restrictive Covenants”), Company shall, in
addition to all its other rights hereunder and under applicable law and in
equity, have the right to seek specific enforcement of the Restrictive
Covenants by any court having jurisdiction, including, without limitation, the
granting of a preliminary injunction which may be granted without the necessity
of proving damages or the posting of a bond or other security, it being
acknowledged that any such breach or threatened breach may 

 

 

cause
irreparable injury to Company and that money damages may not provide an
adequate remedy to Company.  In addition to and not in lieu of any other remedy
that Company may have pursuant to this Agreement or otherwise, in the event of
any breach of any provision of Section 5.01 during the period which
Executive is entitled to receive payments and benefits pursuant to Section 4.07,
such period shall terminate as of the date of such breach and Executive shall
not thereafter be entitled to receive any salary or other payments or benefits
under this Agreement.

 

SECTION 5.03  Severability and
Modification of Covenants. 
Company and Executive agree and
acknowledge that the duration, scope and geographic area of the Restrictive
Covenants described in this Section 5.01 are fair, reasonable and
necessary in order to protect the good will and other legitimate interests of
Company, that adequate consideration has been received by Executive for such
obligations, and that these obligations do not prevent Executive from earning a
livelihood.  If any court of
competent jurisdiction determines that any of the Restrictive Covenants, or any
part thereof, is invalid or unenforceable, the remainder of the Restrictive
Covenants shall not thereby be affected and shall be given full effect, without
regard to the invalid portions.  If any
court of competent jurisdiction construes any of the Restrictive Covenants, or
any part thereof, to be unenforceable because of the duration or geographic
scope of such provision or otherwise, such provision shall be deemed amended to
the minimum extent required to make it enforceable and, in its reduced form,
such provision shall then be enforceable and enforced.

 

VI.                                CERTAIN AGREEMENTS

 

SECTION 6.01
   (a)         Customers, Suppliers.  Executive does not have, and at any time
during the term of this Agreement shall not have, any employment with or any direct
or indirect interest in (as owner, partner, shareholder, employee, director,
officer, agent, consultant or otherwise) any customer of or supplier to
Company.

 

(b)          Certain Activities.  Executive shall not (i) give, attempt to
give or agree to give, any gift or similar benefit of more than nominal value
to any customer, supplier, or governmental employee or official or any other
person who is or may be in a position to assist or hinder Company in connection
with any proposed transaction, which gift or similar benefit, if not given or
continued in the future, might adversely affect the business or prospects of
Company, (ii) use or attempt to use any corporate or other funds for
unlawful contributions, payments, gifts or entertainment, (iii) make or
attempt to make any unlawful expenditures relating to political activity to
government officials or others, (iv) establish or maintain, or attempt to
establish or maintain any unlawful or unrecorded funds in violation of Section 30A
of the Securities Exchange Act of 1934, as amended, or (v) accept, request
or receive any unlawful contributions, payments, gifts, or expenditures.

 

 

VII.                            MISCELLANEOUS

 

SECTION 7.01  Notices.  Any notice or other communication required or
which may be given hereunder shall be in writing and shall be delivered
personally, by confirmed facsimile or email, or sent by certified, registered
or express mail, postage prepaid, and shall be deemed given when so delivered
personally, faxed or emailed, or if mailed, two (2) days after the date of
mailing, as follows:

 

	
   

  	
  (i)

  	
  If to Company,
  addressed to it at:

  	
  InSight Health
  Services Corp.

  
	
   

  	
   

  	
   

  	
  26250 Enterprise Court,
  Suite 100

  
	
   

  	
   

  	
   

  	
  Lake Forest, CA 92630

  
	
   

  	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
   

  	
  Facsimile No.: (949)
  462-3703

  

 

	
   

  	
  (ii)

  	
  If to Parent,
  addressed to it at:

  	
  InSight Health
  Services Holdings Corp.

  
	
   

  	
   

  	
   

  	
  26250 Enterprise
  Court, Suite 100

  
	
   

  	
   

  	
   

  	
  Lake Forest, CA 92630

  
	
   

  	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
   

  	
  Facsimile No.: (949)
  462-3703

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  If to Executive, to
  the address or facsimile set forth below Executive’s signature hereto.  Any party hereto may, by 

  
	
  written notice to the
  other, change its address for receipt of notices hereunder.

  

 

SECTION 7.02  Entire Agreement.  This Agreement contains the entire agreement
between the parties with respect to the subject matter hereof and supersedes
all prior agreements or understandings, written or oral, with respect thereto.

 

SECTION 7.03  Waivers and Amendments.  This Agreement may be amended, modified,
superseded, canceled, renewed or extended, and the terms and conditions hereof
may be waived, amended, modified, superseded, canceled, renewed or extended,
only by a written instrument signed by Executive, Company and Parent.  No waiver of any provision of this Agreement
shall be deemed to be a waiver of any other provision, whether or not
similar.  No such waiver shall constitute
a continuing waiver.  No delay on the
part of either party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of either
party of any right, power or privilege hereunder, preclude any other or further
exercise thereof or the exercise of any other right, power or privilege
hereunder.

 

SECTION 7.04  Assignment.  This Agreement is personal to Executive, and
Executive’s rights and obligations hereunder may not be assigned by
Executive.  Company may assign this
Agreement and its rights, together with its obligations, hereunder (i) in
connection with any sale, transfer or other disposition of all or substantially
all of its assets or business(s), whether by merger, consolidation or
otherwise; or (ii) to any wholly owned subsidiary of Company.

 

 

SECTION 7.05  Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

SECTION 7.06  Headings.  The article and section headings in this
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of this Agreement.

 

SECTION 7.07  Number.  Unless the context of this Agreement
otherwise requires, words using the singular or plural number will also include
the plural or singular number.

 

SECTION 7.08  Governing Law.  This Agreement shall be governed by the laws
of the State of California, without regard to any conflicts of law principles
thereof that would call for the application of the laws of any other
jurisdiction.  Subject to Section 7.11
below, any action or proceeding seeking to enforce any provision of, or based
on any right arising out of, this Agreement may be brought against either of
the parties in the courts of the State of California, or if it has or can
acquire jurisdiction, in the United States District Court for the Southern
District of California, and each of the parties hereby consents to the
jurisdiction of such courts (and of the appropriate appellate courts) in any
such action or proceeding and waives any objection to venue laid therein.  Process in any action or proceeding referred
to in the preceding sentence may be served on any party anywhere in the world,
whether within or without the State of California.

 

SECTION 7.09  Expenses.  Each party shall be responsible for its own
fees and expenses incurred in connection with negotiating this Agreement and
enforcing their respective rights hereunder.

 

SECTION 7.10  Effective Date.  This Agreement shall be effective on the date
hereof (“Effective Time”).

 

SECTION 7.11 
(a)   Resolution of Disputes.  Executive and Company mutually
agree and understand that as an inducement for Company to enter into this
Agreement, Executive and Company agree and consent to the resolution by
arbitration of all claims or controversies, past, present or future, whether
arising out of the employment relationship (or its termination) or relating to
this Agreement that Company may have against Executive or that Executive may
have against Company or against its officers, directors, employees or agents in
their capacity as such or otherwise. The only claims that are arbitrable are
those that, in the absence of this arbitration provision, would have been
justiciable under applicable state or federal law. The claims covered by this
arbitration provision, include, but are not limited to, claims for wages or
other compensation due; claims for breach of any contract or covenant (express
or implied); tort claims; claims for discrimination, retaliation or harassment (including,
but not limited to, race, sex, sexual orientation, religion, national origin,
age, marital status, or medical condition, handicap or disability); claims for
benefits (except claims under an employee benefit or pension plan that either (i) specifies
that its claims procedure shall culminate in an arbitration procedure different
from this one, or (ii) is underwritten by a commercial insurer which
decides the claims); and claims for violation of any federal, state, or other
governmental law, statute, regulation or ordinance, except claims excluded in Section 7.10
(b) below.

 

 

Except
as otherwise provided in this arbitration provision, both Company and Executive
agree that neither of them shall initiate or prosecute any lawsuit or
administrative action (other than an administrative charge of discrimination)
in any way related to any claim covered by this arbitration provision.

 

(b)           Claims Excluded From
Arbitration. Claims Executive may have for workers’ compensation
or unemployment compensation benefits are not covered by this arbitration
provision. Also not covered are claims by Company for injunctive and/or other
equitable relief, including but not limited to those for unfair competition
and/or the use and/or unauthorized disclosure of Trade Secrets or confidential
information, as to which Executive understands and agrees that Company may seek
and obtain relief from a court of competent jurisdiction, without the
requirement to post any bond or prove any damages.

 

(c)           Arbitration Procedures.
Executive and Company understand and agree that the arbitration will take place
in Orange County, California, in accordance with the California Employment
Dispute Resolution Rules of the American Arbitration Association then in
effect in the State of California, and judgment upon such award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof. The
decision of the arbitrator(s) shall be bound by generally accepted legal
principles, including, but not limited to, all rules of law and legal
principles concerning potential liability, burdens of proof, and measure of
damages found in all applicable California statutes and administrative rules and
codes, and all California case law.

 

IN
WITNESS WHEREOF, the parties have executed this Executive Employment Agreement
as of the date first above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  INSIGHT HEALTH SERVICES CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kip Hallman

  
	
   

  	
   

  	
   Name:
   Kip Hallman

  
	
   

  	
   

  	
   Title:  President
  and CEO

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Bernard O’Rourke

  
	
   

  	
  Name: Bernard O’Rourke

  
	
   

  	
  240 Valley View Dr.

  
	
   

  	
  Wallkill, New York 12589

  

 

 

EXHIBIT
A

 

Waiver and Release

 

In consideration of compensation rights and other
benefits, Executive hereby  irrevocably
and unconditionally releases, waives and forever discharges the Company, its
direct and indirect subsidiaries and affiliates, affiliated persons,
partnerships and corporations, successors and assigns, and all of their past
and present directors, members, partners, contractors, distributors, officers,
stockholders, consultants, agents, representatives, attorneys, employees,
employee benefit plans and plan fiduciaries (collectively, the “Company
Releasees”), individually and collectively, from any and all actions, causes of
action, claims, demands, damages, rights, remedies and liabilities of
whatsoever kind or character, in law or equity, suspected or unsuspected, known
or unknown, past or present, that Executive has ever had, may now have, or may
later have or assert against any of the Company Releasees, concerning, arising
out of or related to Executive’s employment by or the performance of any
services to or on behalf of any of the InSight Companies, arising out of or
related to the termination of Executive’s employment agreement with the InSight
Companies, or arising out of any other agreement Executive has, may have or may
have had with the InSight Companies, in all cases from the beginning of time to
the effective date of termination (hereinafter referred to as “Executive’s
Claims”), including without limitation: (i) any claims arising out of or
related to any federal, state and/or local labor or civil rights laws, as
amended, including, without limitation, the federal Civil Rights Acts of
1866,1964, and 1991 (including but not limited to Title VII), the Age
Discrimination in Employment Act of 1967, the National Labor Relations Act, the
Workers’ Adjustment and Retraining Notification Act, the Employee Retirement
Income Security Act of 1974, the Family and Medical Leave Act of 1993, the
Americans with Disabilities Act of 1990, the Fair Labor Standards Act of 1938,
the Older Workers Benefit Protection Act, the California Fair Employment and
Housing Act, the California Industrial Welfare Commission Wage Orders, and the
California Labor Code and/or any similar state antidiscrimination and employment
statutes, and (ii) any and all other Executive’s Claims arising out of or
related to any contract or employment agreement, any and all other federal,
state or local constitutions, statutes, rules or regulations, or under the
laws of any country or political subdivision, or under any common law right of
any kind whatsoever.  Executive also
agree to waive all rights to sue or obtain equitable, remedial or point relief
from any or all Company Releasees of any kind whatsoever, including, without
limitation, reinstatement, back pay, front pay, attorneys’ fees and any form of
injunctive relief. Notwithstanding the foregoing, this Agreement shall not
affect any of Executive’s rights or obligations under (a) the Company’s
401(k) Savings Plan (the “401(k) Plan”), (b) the Indemnification
Agreement executed between Executive and the Company effective May 15,
2008 (c) Executive’s right to statutory indemnification pursuant to  California Labor Code Section 2802, (d) the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”), (e) workers
compensation or unemployment insurance benefit claims, or (f) the terms of
this Agreement.

 

Executive and the Company
hereby waive and relinquish all rights and benefits afforded by California  Civil Code 1542.  Executive and the Company understand and
acknowledge the significance and consequences of this specific waiver of Section 1542.  California Civil Code section 1542 states as
follows:

 

 

A general release does
not extend to claims which the creditor does not know or suspect to exist in
his favor at the time of executing the release, which if known by him must have
materially affect his settlement with the debtor.

 

To the fullest extent
permitted by law, Executive represents, warrants and agrees not to lodge or
assist anyone else in lodging any formal or informal complaint in court, with
any federal, state or local agency or any other forum, in any jurisdiction,
arising out of or related to Executive’s Claims.  Executive hereby represents and warrants that
Executive has not brought any complaint, claim, charge, action or proceeding
against any of the Company Releasees in any jurisdiction or forum, nor assisted
or encouraged any other person or persons in doing so.  Executive further represents and warrants
that Executive has not in the past and will not in the future assign any of
Executive’s Claims to any person, corporation or other entity.

 

Executive’s execution of
this Agreement operates as a complete bar and defense against any and all of
the Executive’s Claims against the Company and each of the other Company
Releasees to the maximum extent permitted by law.  If Executive should hereafter make any of
Executive’s Claims in any charge, complaint, action, claim or proceeding
against the Company or any of the other 
Company Releasees, this Agreement may be raised as, and shall constitute
a complete bar to, any such charge, complaint, action, claim or proceeding and
Executive agrees to disclaim and waive any right to share or participate in any
monetary award resulting from the prosecution of any administrative
investigation or proceeding.EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (this “Agreement”)
is entered into by and between Mindspeed Technologies, Inc., a Delaware
corporation (the “Company”), and
                          
(the “Executive”), as of the
         day of
                        ,
20    .

 

The Board of Directors of the Company (the “Board”)
has determined that it is in the best interests of the Company and its
shareholders to assure that the Company will have the continued dedication of
the Executive, notwithstanding the possibility, threat or occurrence of a
Change of Control (as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive’s full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order
to accomplish these objectives, the Board has caused the Company to enter into
this Agreement.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.             Certain Definitions.  (a) 
The “Effective Date” shall mean the first date during the Change of Control
Period (as defined in Section 1(b)) on which a Change of Control (as
defined in Section 2) occurs. 
Anything in this Agreement to the contrary notwithstanding, if a Change
of Control occurs and if the Executive’s employment with the Company is
terminated prior to the date on which the Change of Control occurs, and if it
is reasonably demonstrated by the Executive that such termination of employment
(i) was at the request of a third party who has taken steps reasonably
calculated to effect a Change of Control or (ii) otherwise arose in
connection with or anticipation of a Change of Control, then for all purposes
of this Agreement the “Effective Date” shall mean the date immediately prior to
the date of such termination of employment.

 

(b)           The “Change of Control Period” shall mean
the period commencing on the date hereof and ending on the third anniversary of
the date hereof; provided, however, that commencing on the date
one year after the date hereof, and on each annual anniversary of such date
(such date and each annual anniversary thereof shall be hereinafter referred to
as the “Renewal Date”), unless previously terminated, the Change of
Control Period shall be automatically extended so as to terminate three years
from such Renewal Date, unless at least 60 days prior to the Renewal Date the
Company shall give notice to the Executive that the Change of Control Period
shall not be so extended.

 

2.             Change of Control. 
For the purpose of this Agreement, a “Change of Control” shall mean:

 

(a)           The acquisition by any individual, entity
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a
“Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 35% or more of either (i) the then
outstanding shares of common stock of the Company (the “Outstanding Company
Common Stock”) or (ii) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided,
however, that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change of Control:  (i) any acquisition directly from the
Company, (ii) any acquisition by the Company, (iii) any acquisition
by Mindspeed Technologies, Inc., (iv) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company,
Mindspeed Technologies, Inc. or any corporation controlled by the Company
or Mindspeed Technologies, Inc. or (iv) any acquisition pursuant to a
transaction which complies with clauses (i), (ii) and (iii) of
subsection (c) of this Section 2; or

 

1

 

(b)           Individuals who, as of the date of the
distribution of the Outstanding Company Common Stock to the holders of capital
stock of Mindspeed Technologies, Inc., constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to
the date hereof whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents by
or on behalf of a Person other than the Board; or

 

(c)           Consummation of a reorganization, merger
or consolidation or sale or other disposition of all or substantially all of
the assets of the Company or the acquisition of assets of another entity (a “Business
Combination”), in each case, unless, following such Business Combination, (i) all
or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 60% of, respectively, the
then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a
result of such transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to
such Business Combination, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (ii) no Person
(excluding Mindspeed Technologies, Inc., any employee benefit plan (or
related trust) of the Company, of Mindspeed Technologies, Inc. or of such
corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 35% or more of, respectively, the then outstanding
shares of common stock of the corporation resulting from such Business
Combination or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed
prior to the Business Combination and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing
for such Business Combination; or

 

(d)           Approval by the Company’s shareholders of
a complete liquidation or dissolution of the Company.

 

3.             Employment Period. 
The Company hereby agrees to continue the Executive in its employ, and
the Executive hereby agrees to remain in the employ of the Company subject to
the terms and conditions of this Agreement, for the period commencing on the
Effective Date and ending on the third anniversary of such date (the “Employment
Period”).

 

4.             Terms of Employment.  (a) 
Position and Duties.  (i) 
During the Employment Period, (A) the Executive’s position (including
status, offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned at any time during
the 120-day period immediately preceding the Effective Date and (B) the
Executive’s services shall be performed at the location where the Executive was
employed immediately preceding the Effective Date or any office or location
less than 35 miles from such location.

 

(ii)           During the Employment Period, and
excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive agrees to devote reasonable attention and time during
normal business hours to the business and affairs of the Company and, to the
extent necessary to discharge the responsibilities assigned to the Executive
hereunder, to use the Executive’s reasonable best efforts to perform faithfully
and efficiently such responsibilities. 
During the Employment Period it shall not be a violation of this Agreement
for the Executive to (A) serve on corporate, civic or charitable boards or
committees, (B) deliver lectures, fulfill speaking engagements or teach at
educational institutions and (C) manage personal investments, so long as
such activities do not significantly interfere with the performance of the
Executive’s responsibilities as an employee of the Company in accordance with
this Agreement.  It is expressly
understood and agreed that to the extent that any such activities have been
conducted by the Executive prior to the Effective Date, the continued conduct
of such activities (or the conduct of activities similar in nature and scope
thereto) subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of the Executive’s responsibilities to the
Company.

 

2

 

(b)           Compensation.  (i) 
Base Salary.  During the
Employment Period, the Executive shall receive an annual base salary (“Annual
Base Salary”), which shall be paid at a monthly rate, at least equal to
twelve times the highest monthly base salary paid or payable, including any
base salary which has been earned but deferred, to the Executive by the Company
and its affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment Period, the Annual Base
Salary shall be reviewed no more than 12 months after the last salary increase
awarded to the Executive prior to the Effective Date and thereafter at least
annually.  Any increase in Annual Base
Salary shall not serve to limit or reduce any other obligation to the Executive
under this Agreement.  Annual Base Salary
shall not be reduced after any such increase and the term Annual Base Salary as
utilized in this Agreement shall refer to Annual Base Salary as so
increased.  As used in this Agreement,
the term “affiliated companies” shall include any company controlled by,
controlling or under common control with the Company.

 

(ii)           Annual Bonus.  In
addition to Annual Base Salary, the Executive shall be awarded, for each fiscal
year ending during the Employment Period, an annual bonus (the “Annual Bonus”)
in cash at least equal to the Executive’s highest bonus under the Company’s
annual incentive plans for the last three full fiscal years prior to the
Effective Date (annualized in the event that the Executive was not employed by
the Company for the whole of such fiscal year) (the “Recent Annual Bonus”).  Each such Annual Bonus shall be paid no later
than the end of the third month of the fiscal year next following the fiscal
year for which the Annual Bonus is awarded, unless the Executive shall elect to
defer the receipt of such Annual Bonus.

 

(iii)          Incentive
and Savings Plans.  During the Employment Period, the Executive
shall be entitled to participate in all incentive and savings plans, practices,
policies and programs applicable generally to other peer executives of the
Company and its affiliated companies, but in no event shall such plans, practices,
policies and programs provide the Executive with incentive opportunities
(measured with respect to both regular and special incentive opportunities, to
the extent, if any, that such distinction is applicable) and savings
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

 

(iv)          Welfare Benefit Plans. 
During the Employment Period, the Executive and/or the Executive’s
family, as the case may be, shall be eligible for participation in and shall
receive all benefits under welfare benefit plans, practices, policies and
programs provided by the Company and its affiliated companies (including,
without limitation, medical, prescription, dental, disability, employee life,
group life, accidental death and travel accident insurance plans and programs)
to the extent applicable generally to other peer executives of the Company and
its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with benefits which are less favorable, in
the aggregate, than the most favorable of such plans, practices, policies and
programs in effect for the Executive at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the
Executive, those provided generally at any time after the Effective Date to
other peer executives of the Company and its affiliated companies.

 

(v)           Expenses.  During the
Employment Period, the Executive shall be entitled to receive prompt
reimbursement for all reasonable expenses incurred by the Executive in
accordance with the most favorable policies, practices and procedures of the
Company and its affiliated companies in effect for the Executive at any time
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

 

3

 

(vi)          Fringe Benefits. 
During the Employment Period, the Executive shall be entitled to fringe
benefits, including, without limitation, tax and financial planning services,
payment of club dues, and, if applicable, use of an automobile and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

 

(vii)         Office
and Support Staff.  During the Employment Period, the Executive
shall be entitled to an office or offices of a size and with furnishings and
other appointments, and to exclusive personal secretarial and other assistance,
at least equal to the most favorable of the foregoing provided to the Executive
by the Company and its affiliated companies at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive, as provided generally at any time thereafter with respect to other
peer executives of the Company and its affiliated companies.

 

(viii)        Vacation. 
During the Employment Period, the Executive shall be entitled to paid
vacation in accordance with the most favorable plans, policies, programs and
practices of the Company and its affiliated companies as in effect for the
Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

 

5.             Termination of Employment.  (a) 
Death or Disability.  The
Executive’s employment shall terminate automatically upon the Executive’s death
during the Employment Period.  If the Company
determines in good faith that the Disability of the Executive has occurred
during the Employment Period (pursuant to the definition of Disability set
forth below), it may give to the Executive written notice in accordance with Section 12(b) of
this Agreement of its intention to terminate the Executive’s employment.  In such event, the Executive’s employment
with the Company shall terminate effective on the 30th day after receipt of
such notice by the Executive (the “Disability Effective Date”), provided
that, within the 30 days after such receipt, the Executive shall not have
returned to full-time performance of the Executive’s duties.  For purposes of this Agreement, “Disability”
shall mean the absence of the Executive from the Executive’s duties with the
Company on a full-time basis for 180 consecutive business days as a result of
incapacity due to mental or physical illness which is determined to be total
and permanent by a physician selected by the Company or its insurers and
acceptable to the Executive or the Executive’s legal representative.

 

(b)           Cause.  The Company
may terminate the Executive’s employment during the Employment Period for
Cause.  For purposes of this Agreement, “Cause”
shall mean:

 

(i)            the willful and continued failure of the
Executive to perform substantially the Executive’s duties with the Company or
one of its affiliates (other than any such failure resulting from incapacity
due to physical or mental illness), after a written demand for substantial
performance is delivered to the Executive by the Board or the Chief Executive
Officer of the Company which specifically identifies the manner in which the
Board or Chief Executive Officer believes that the Executive has not
substantially performed the Executive’s duties, or

 

(ii)           the willful engaging by the Executive in
illegal conduct or gross misconduct which is materially and demonstrably
injurious to the Company.

 

For purposes of this provision, no act or failure to
act, on the part of the Executive, shall be considered “willful” unless it is
done, or omitted to be done, by the Executive in bad faith or without
reasonable belief that the Executive’s action or omission was in the best
interests of the Company.  Any act, or
failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer or
a senior officer of the Company or based upon the advice of counsel for the
Company shall be conclusively presumed to be done, or omitted to be done, by
the Executive in good faith and in the best interests of the Company.  The cessation of employment of the Executive
shall not be deemed to be for Cause unless and until there shall have been
delivered to the Executive a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters of the entire membership of the Board at a
meeting of the Board called and held for such purpose (after reasonable notice
is provided to the Executive and the Executive is given an opportunity,
together with counsel, to be heard before the Board), finding that, in the good
faith opinion of the Board, the Executive is guilty of the conduct described in
subparagraph (i) or (ii) above, and specifying the particulars
thereof in detail.

 

4

 

(c)           Good Reason. 
The Executive’s employment may be terminated by the Executive for Good
Reason.  For purposes of this Agreement, “Good
Reason” shall mean:

 

(i)            the assignment to the Executive of any
duties inconsistent in any respect with the Executive’s position (including
status, offices, titles and reporting requirements), authority, duties or
responsibilities as contemplated by Section 4(a) of this Agreement,
or any other action by the Company which results in a diminution in such position,
authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive;

 

(ii)           any failure by the Company to comply with
any of the provisions of Section 4(b) of this Agreement, other than
an isolated, insubstantial and inadvertent failure not occurring in bad faith
and which is remedied by the Company promptly after receipt of notice thereof
given by the Executive;

 

(iii)          the
Company’s requiring the Executive to be based at any office or location other
than as provided in Section 4(a)(i)(B) hereof or the Company’s
requiring the Executive to travel on Company business to a substantially
greater extent than required immediately prior to the Effective Date;

 

(iv)          any purported termination by the Company
of the Executive’s employment otherwise than as expressly permitted by this
Agreement; or

 

(v)           any failure by the Company to comply with
and satisfy Section 11(c) of this Agreement.

 

For purposes of this Section 5(c), any good
faith determination of “Good Reason” made by the Executive shall be conclusive.

 

(d)           Notice of Termination. 
Any termination by the Company for Cause, or by the Executive for Good
Reason, shall be communicated by Notice of Termination to the other party
hereto given in accordance with Section 12(b) of this Agreement.  For purposes of this Agreement, a “Notice of
Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than thirty days after the
giving of such notice).  The failure by
the Executive or the Company to set forth in the Notice of Termination any fact
or circumstance which contributes to a showing of Good Reason or Cause shall
not waive any right of the Executive or the Company, respectively, hereunder or
preclude the Executive or the Company, respectively, from asserting such fact
or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

 

(e)           Date of Termination.  “Date
of Termination” means (i) if the Executive’s employment is terminated by
the Company for Cause, or by the Executive for Good Reason, the date of receipt
of the Notice of Termination or any later date specified therein, as the case
may be, (ii) if the Executive’s employment is terminated by the Company
other than for Cause or Disability, the Date of Termination shall be the date
on which the Company notifies the Executive of such termination and (iii) if
the Executive’s employment is terminated by reason of death or Disability, the
Date of Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

 

5

 

6.             Obligations of the Company upon
Termination.  (a)  
Good Reason; Other Than for Cause, Death or Disability.  If, during the Employment Period, the Company
shall terminate the Executive’s employment other than for Cause or Disability
or the Executive shall terminate employment for Good Reason:

 

(i)            the Company shall pay to the Executive in
a lump sum in cash within 30 days after the Date of Termination the aggregate
of the following amounts:

 

(A)          the sum of (1) the Executive’s
Annual Base Salary through the Date of Termination to the extent not
theretofore paid, (2) the product of (x) the higher of (I) the
Recent Annual Bonus and (II) the Annual Bonus paid or payable, including
any bonus or portion thereof which has been earned but deferred (and annualized
for any fiscal year consisting of less than twelve full months or during which
the Executive was employed for less than twelve full months), for the most
recently completed fiscal year during the Employment Period, if any (such
higher amount being referred to as the “Highest Annual Bonus”) and (y) a
fraction, the numerator of which is the number of days in the current fiscal
year through the Date of Termination, and the denominator of which is 365 and (3) any
compensation previously deferred by the Executive (together with any accrued
interest or earnings thereon) and any accrued vacation pay, in each case to the
extent not theretofore paid (the sum of the amounts described in clauses (1),
(2), and (3) shall be hereinafter referred to as the “Accrued Obligations”);
and

 

(B)           the amount equal to the product of (1) two
and (2) the sum of (x) the Executive’s Annual Base Salary and (y) the
Highest Annual Bonus.

 

(ii)           for two years after the Executive’s Date
of Termination, or such longer period as may be provided by the terms of the
appropriate plan, program, practice or policy, the Company shall continue
benefits to the Executive and/or the Executive’s family at least equal to those
which would have been provided to them in accordance with the plans, programs,
practices and policies described in Section 4(b)(iv) of this
Agreement if the Executive’s employment had not been terminated or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies
and their families, provided, however, that if the Executive
becomes reemployed with another employer and is eligible to receive medical or
other welfare benefits under another employer provided plan, the medical and
other welfare benefits described herein shall be secondary to those provided
under such other plan during such applicable period of eligibility.  For purposes of determining eligibility (but
not the time of commencement of benefits) of the Executive for retiree benefits
pursuant to such plans, practices, programs and policies, the Executive shall
be considered to have remained employed until two years after the Date of
Termination and to have retired on the last day of such period;

 

(iii)          the
Company shall, at its sole expense as incurred, provide the Executive with
outplacement services the scope and provider of which shall be selected by the
Executive in his sole discretion;

 

(iv)          all options, stock appreciation rights,
stock purchase rights, restricted stock, stock bonuses and other awards which
consist of, or relate to, equity securities of the Company that are held by the
Executive shall vest in full and, as applicable, shall become fully
exercisable, as of the Date of Termination; and

 

(v)           to the extent not theretofore paid or
provided, the Company shall timely pay or provide to the Executive any other
amounts or benefits required to be paid or provided or which the Executive is
eligible to receive under any plan, program, policy or practice or contract or
agreement of the Company and its affiliated companies (such other amounts and
benefits shall be hereinafter referred to as the “Other Benefits”).

 

(b)           Death.  If the
Executive’s employment is terminated by reason of the Executive’s death during
the Employment Period, this Agreement shall terminate without further
obligations to the Executive’s legal representatives under this Agreement,
other than for payment of Accrued Obligations and the timely payment or
provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive’s 

 

6

 

estate or beneficiary, as applicable, in a lump sum in
cash within 30 days of the Date of Termination. 
With respect to the provision of Other Benefits, the term Other Benefits
as utilized in this Section 6(b) shall include, without limitation,
and the Executive’s estate and/or beneficiaries shall be entitled to receive,
benefits at least equal to the most favorable benefits provided by the Company
and affiliated companies to the estates and beneficiaries of peer executives of
the Company and such affiliated companies under such plans, programs, practices
and policies relating to death benefits, if any, as in effect with respect to
other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive’s estate and/or the Executive’s beneficiaries, as in effect on the
date of the Executive’s death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

 

(c)           Disability.  If the
Executive’s employment is terminated by reason of the Executive’s Disability
during the Employment Period, this Agreement shall terminate without further
obligations to the Executive, other than for payment of Accrued Obligations and
the timely payment or provision of Other Benefits.  Accrued Obligations shall be paid to the
Executive in a lump sum in cash within 30 days of the Date of Termination.  With respect to the provision of Other
Benefits, the term Other Benefits as utilized in this Section 6(c) shall
include, and the Executive shall be entitled after the Disability Effective
Date to receive, disability and other benefits at least equal to the most
favorable of those generally provided by the Company and its affiliated
companies to disabled executives and/or their families in accordance with such
plans, programs, practices and policies relating to disability, if any, as in
effect generally with respect to other peer executives and their families at
any time during the 120-day period immediately preceding the Effective Date or,
if more favorable to the Executive and/or the Executive’s family, as in effect
at any time thereafter generally with respect to other peer executives of the
Company and its affiliated companies and their families.

 

(d)           Cause; Other than for Good Reason. 
If the Executive’s employment shall be terminated for Cause during the
Employment Period, this Agreement shall terminate without further obligations
to the Executive other than the obligation to pay to the Executive (x) his
Annual Base Salary through the Date of Termination, (y) the amount of any compensation
previously deferred by the Executive, and (z) Other Benefits, in each case
to the extent theretofore unpaid.  If the
Executive voluntarily terminates employment during the Employment Period,
excluding a termination for Good Reason, this Agreement shall terminate without
further obligations to the Executive, other than for Accrued Obligations and
the timely payment or provision of Other Benefits.  In such case, all Accrued Obligations shall
be paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination.

 

(e)           Application of Section 409A. 
Notwithstanding any other provision of this Agreement, to the extent
that (i) one or more of the payments or benefits received or to be
received by the Executive would constitute deferred compensation subject to the
requirements of Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), and (ii) the Executive is a “specified
employee” within the meaning of Code Section 409A, then such payment or
benefit (or portion thereof) will be delayed until the earliest date following
the Participant’s “separation from service” with the Company within the meaning
of Code Section 409A on which the Company can provide such payment or
benefit to the Executive without the Executive’s incurrence of any additional
tax or interest pursuant to Code Section 409A, with all remaining payments
or benefits due thereafter occurring in accordance with the original
schedule.  In addition, this Agreement
and the payments and benefits to be provided hereunder are intended to comply
in all respects with the applicable provision of Code Section 409A.

 

7.             Non-exclusivity of Rights. 
Nothing in this Agreement shall prevent or limit the Executive’s
continuing or future participation in any plan, program, policy or practice
provided by the Company or any of its affiliated companies and for which the
Executive may qualify, nor, subject to Section 12(f), shall anything
herein limit or otherwise affect such rights as the Executive may have under
any contract or agreement with the Company or any of its affiliated
companies.  Amounts which are vested
benefits or which the Executive is otherwise entitled to receive under any
plan, policy, practice or program of or any contract or agreement with the
Company or any of its affiliated companies at or subsequent to the Date of
Termination shall be payable in accordance with such plan, policy, practice or
program or contract or agreement except as explicitly modified by this
Agreement.

 

7

 

8.             Full Settlement. 
The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and such amounts shall not be reduced whether or not the Executive obtains
other employment.  The Company agrees to
pay as incurred, to the full extent permitted by law, all legal fees and
expenses which the Executive may reasonably incur as a result of any contest
(regardless of the outcome thereof) by the Company, the Executive or others of
the validity or enforceability of, or liability under, any provision of this
Agreement or any guarantee of performance thereof (including as a result of any
contest by the Executive about the amount of any payment pursuant to this
Agreement), plus in each case interest on any delayed payment at the applicable
Federal rate provided for in Section 7872(f)(2)(A) of the Code.

 

9.             Certain Additional Payments by the
Company.

 

(a)           Anything in this Agreement to the
contrary notwithstanding and except as set forth below, in the event it shall
be determined that any payment or distribution by the Company or its affiliates
to or for the benefit of the Executive (whether paid or payable or distributed
or distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this Section 9)
(a “Payment”) would be subject to the excise tax imposed by Section 4999
of the Code or any interest or penalties are incurred by the Executive with
respect to such excise tax (such excise tax, together with any such interest
and penalties, are hereinafter collectively referred to as the “Excise Tax”),
then the Executive shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by the Executive of all
taxes (including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments. 
Notwithstanding the foregoing provisions of this Section 9(a), if
it shall be determined that the Executive is entitled to a Gross-Up Payment,
but that the Payments do not exceed 110% of the greatest amount (the “Reduced
Amount”) that could be paid to the Executive such that the receipt of
Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall
be made to the Executive and the Payments, in the aggregate, shall be reduced
to the Reduced Amount.

 

(b)           Subject to the provisions of Section 9(c),
all determinations required to be made under this Section 9, including
whether and when a Gross-Up Payment is required and the amount of such Gross-Up
Payment and the assumptions to be utilized in arriving at such determination,
shall be made by Deloitte & Touche LLP or such other certified public
accounting firm as may be designated by the Executive (the “Accounting Firm”)
which shall provide detailed supporting calculations both to the Company and
the Executive within 15 business days of the receipt of notice from the
Executive that there has been a Payment, or such earlier time as is requested
by the Company.  In the event that the
Accounting Firm is serving as accountant or auditor for the individual, entity
or group effecting the Change of Control, the Executive shall appoint another
nationally recognized accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder).  All fees and expenses
of the Accounting Firm shall be borne solely by the Company.  Any Gross-Up Payment, as determined pursuant
to this Section 9, shall be paid by the Company to the Executive within
five days of the receipt of the Accounting Firm’s determination.  Any determination by the Accounting Firm
shall be binding upon the Company and the Executive.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder.  In the event that the Company exhausts its
remedies pursuant to Section 9(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.

 

8

 

(c)           The Executive shall notify the Company in
writing of any claim by the Internal Revenue Service that, if successful, would
require the payment by the Company of the Gross-Up Payment.  Such notification shall be given as soon as
practicable but no later than ten business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid.  The Executive shall not pay such claim prior
to the expiration of the 30-day period following the date on which it gives
such notice to the Company (or such shorter period ending on the date that any
payment of taxes with respect to such claim is due).  If the Company notifies the Executive in
writing prior to the expiration of such period that it desires to contest such
claim, the Executive shall:

 

(i)            give the Company any information
reasonably requested by the Company relating to such claim,

 

(ii)           take such action in connection with
contesting such claim as the Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

 

(iii)          cooperate
with the Company in good faith in order effectively to contest such claim, and

 

(iv)          permit the Company to participate in any
proceedings relating to such claim;

 

provided, however, that the Company shall bear and pay
directly all costs and expenses (including additional interest and penalties)
incurred in connection with such contest and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties with respect thereto) imposed as a result of
such representation and payment of costs and expenses.  Without limitation on the foregoing
provisions of this Section 9(c), the Company shall control all proceedings
taken in connection with such contest and, at its sole option, may pursue or
forgo any and all administrative appeals, proceedings, hearings and conferences
with the taxing authority in respect of such claim and may, at its sole option,
either direct the Executive to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to the Executive, on an interest-free basis
and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and further provided that any extension of
the statute of limitations relating to payment of taxes for the taxable year of
the Executive with respect to which such contested amount is claimed to be due
is limited solely to such contested amount. 
Furthermore, the Company’s control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing
authority.

 

(d)           If, after the receipt by the Executive of
an amount advanced by the Company pursuant to Section 9(c), the Executive
becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto).  If, after the receipt by the Executive of an
amount advanced by the Company pursuant to Section 9(c), a determination
is made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

 

10.           Confidential Information. 
The Executive shall hold in a fiduciary capacity for the benefit of the
Company all secret or confidential information, knowledge or data relating to
the Company or any of its affiliated companies, and their respective
businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Company or any of its affiliated companies and
which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in 

 

9

 

violation of this Agreement).  After termination of the Executive’s
employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone other
than the Company and those designated by it. 
In no event shall an asserted violation of the provisions of this Section 10
constitute a basis for deferring or withholding any amounts otherwise payable
to the Executive under this Agreement.

 

11.           Successors.  (a) 
This Agreement is personal to the Executive and without the prior written
consent of the Company shall not be assignable by the Executive otherwise than
by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of
and be enforceable by the Executive’s legal representatives.

 

(b)           This Agreement shall inure to the benefit
of and be binding upon the Company and its successors and assigns.

 

(c)           The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
assume expressly and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined and
any successor to its business and/or assets as aforesaid which assumes and
agrees to perform this Agreement by operation of law, or otherwise.

 

12.           Miscellaneous.  (a) 
This Agreement shall be governed by and construed in accordance with the laws
of the State of California, without reference to principles of conflict of
laws.  The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

 

(b)           All notices and other communications
hereunder shall be in writing and shall be given by hand delivery to the other
party or by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

 

If to the Executive:

 

 

If to the Company:

 

Mindspeed Technologies, Inc.

4000 MacArthur Boulevard

Newport Beach, CA 92660-3095

 

Attention:  General Counsel

 

or to such other address as either party shall have
furnished to the other in writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

 

(c)           The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

 

(d)           The Company may withhold from any amounts
payable under this Agreement such Federal, state, local or foreign taxes as
shall be required to be withheld pursuant to any applicable law or regulation.

 

10

 

(e)           The Executive’s or the Company’s failure
to insist upon strict compliance with any provision of this Agreement or the
failure to assert any right the Executive or the Company may have hereunder,
including, without limitation, the right of the Executive to terminate employment
for Good Reason pursuant to Section 5(c)(i)-(v) of this Agreement,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

 

(f)            The Executive and the Company acknowledge
that, except as may otherwise be provided under any other written agreement
between the Executive and the Company, the employment of the Executive by the
Company is “at will” and, subject to Section 1(a) hereof, prior to
the Effective Date, the Executive’s employment may be terminated by either the
Executive or the Company at any time prior to the Effective Date, in which case
the Executive shall have no further rights under this Agreement.  The Company shall determine in its sole
discretion whether the Executive has experienced a termination of employment
for purposes of this Agreement prior to the Effective Date.  The Executive’s participation in other
Company arrangements shall not be determinative of the Executive’s continued
employment for purposes of this Agreement. 
From and after the Effective Date this Agreement shall supersede any
other agreement between the parties with respect to the subject matter hereof.

 

IN WITNESS WHEREOF, the Executive has hereunto set
the Executive’s hand and, pursuant to the authorization from its Board of
Directors, the Company has caused these presents to be executed in its name on
its behalf, all as of the day and year first above written.

 

 

	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MINDSPEED TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:
  

  

 

11

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