Document:

Exhibit 10.1 - ICO FY2007 Incentive Plans - Grp Pres

     

      
        

      

    

    Exhibit
      10.1

    

    

    
      	
              ICO,
                Inc. Fiscal Year 2007 Incentive Plan Matrix- Business Unit Group
                Presidents

            
	 
	 	 	
              Pay-out
                as a percentage of base salary *

            
	
              Measurement

            	
              Weighting

            	
              0%

            	
              50%

            	
              100%

            
	
              Operating
                Income

            	 	 	 	 
	
              Business
                Unit ROIC

            	 	 	 	 
	
              Business
                Unit Investment Turnover

            	 	 	 	 
	
              ICO,
                Inc. consolidated ROE

            	 	 	 	 
	
              Subjective/Qualitative
                Factors

            	 	 	 	 

    

    

     

    
      
        

      

    

    ICO,
      Inc.

    FY
      2007 Incentive Plan Matrix -Group Presidents

    Explanation
      of Measurement Definitions and additional Explanatory
      Notes

    

    Measurement
      definitions

     

    *     “Operating
      Income”:
      Earnings before interest and taxes and excluding non-recurring charges. Note
      that Operating Income shall include expenses for bonuses payable under this
      plan. Non-recurring charges excluded from the calculation of Operating Income
      shall consist of impairment, restructuring and other charges included in ICO's
      audited financial statements. Additionally, Operating Income shall exclude,
      on a
      proforma basis, the effect of discontinued operations (including plants that
      are
      shut-down, if any).

    

    *     “ROIC”:
      Annual
      Operating Income divided by Invested Capital Base. Invested Capital Base is
      defined as average total assets minus all intercompany loans (including
      intercompany accounts receivables and payables), investment in affiliates,
      and
      goodwill, minus current liabilities, excluding funded debt (i.e. interest
      bearing debt). The average Invested Capital base shall be calculated using
      the
      previous thirteen points of month-end data. 

    

    *     “Investment
      Turnover”:
      Trailing twelve months revenue divided by the average Invested Capital Base
      for
      the previous thirteen month-end periods. Note that Investment turnover
      calculation will include intercompany revenues, receivables and
      payables.

    

    *     “ROE”:
      Net
      income from continuing operations, excluding effect of preferred buy back,
      minus
      preferred dividends (whether paid or accrued towards Convertible Preferred
      Stock
      liquidation preference), divided by Stockholders' equity, less the liquidation
      preference of Convertible Preferred Stock. For purposes of this calculation,
      Stockholders' equity and liquidation preference balances shall be averaged
      using
      the previous four (4) quarter-end balances, plus the year-end balance (i.e.
      the
      previous year end balance plus the four quarter-end balances of fiscal year
      2007).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Computational
        Note

       

      *    For
        each
        measurement the bonus amount payable is calculated as the result achieved
        for
        each measurement (i.e. the 0%, 50% or 100% pay-out) times the weighting and
        multiplied by the relevant Group President’s base salary. Results for each
        measurement falling between the targeted amounts adjust the pay-out targets
        by
        interpolating the percentage of: (i) the resulted achieved minus the lower
        threshold divided by, (ii) the difference between the higher and lower target,
        multiplied by (iii) the higher pay-out target percentage.

       

    

    Additional
      Explanatory Notes

     

    *     At
      the
      option of the Group President, and subject to the approval of the Compensation
      Committee, and subject to shareholder approval of amendments to the 1998
      employee stock option plan to permit restricted stock grants, the Group
      President may be awarded up to 25% of the incentive compensation award in the
      form of restricted stock with a vesting schedule as approved by the Compensation
      Committee.

    

    *     A
      Business Unit President will not be entitled to a bonus under this Plan, or
      otherwise with respect to FY 2007, if, prior October 1, 2007, (a) he resigns
      from employment with the Company, or (b) he is terminated from employment for
      “Cause.” Termination for “Cause” shall mean termination for “Cause” as defined
      in the employment agreement (if any) between the Company or its subsidiary
      and
      the Business Unit President, and also shall mean termination of the Business
      Unit President as a result of the Business Unit President’s violation of any
      provision of the Company’s Code of Business Ethics.Exhibit 10.2 - ICO FY2007 Incentive Plan - CFO

    
      

    

    

    Exhibit
      10.2

    

    

    
      	
              ICO,
                Inc. Fiscal Year 2007 Incentive Plan Matrix- Chief Financial
                Officer

            
	
               

            
	
               

            	
               

            	
              Pay-out
                as a percentage of Base Salary *

            
	
              Measurement

            	
              Weighting

            	
              0%

            	
              32%

            	
              64%

            
	
              Corporate
                Expenses

            	 	 	 	 
	
              [redacted/specific
                operation performance]

            	 	 	 	 
	
              ICO,
                Inc. Consolidated ROE

            	 	 	 	 
	
              Subjective/Qualitative
                Factors

            	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    ICO,
      Inc.

    FY
      2007 Incentive Plan Matrix - CFO

    Explanation
      of Measurement Definitions and additional Explanatory
      Notes

    

    

    Measurement
      definitions

    

    *    “Corporate
      Expenses”:
      Defined as Corporate general and administrative expenses, excluding stock option
      expenses and excluding business unit expenses paid for by Corporate and included
      in Corporate expenses. These expenses include but are not limited to: banking
      fees formerly paid by ICO Polymers North America and Bayshore, fees related
      to
      global tax planning, expenses for two employees transferred from Europe,
      Executive Leadership Team conference fees, and consulting and legal fees to
      establish restricted stock/deferred compensation plans.

    

    *    “ROE”:
      Net
      income from continuing operations, excluding effect of preferred stock buy
      back,
      minus preferred dividends (whether paid or accrued towards preferred stock
      liquidation preference), divided by Stockholders' equity, less the liquidation
      preference of the preferred stock. For purposes of this calculation,
      Stockholders' equity and liquidation preference balances shall be averaged
      using
      the previous four (4) quarter-end balances, plus the year-end balance (i.e.
      the
      previous year end balance plus the four quarter-end balances of fiscal year
      2007).

    

    Computational
      Note

    

    *    For
      each
      measurement the bonus amount payable is calculated as the result achieved for
      each measurement (i.e. the 0%, 32% or 64% pay-out) times the weighting and
      multiplied by the CFO’s base salary. Results for each measurement falling
      between the targeted amounts adjust the pay-out targets by interpolating the
      percentage of: (i) the result achieved minus the lower threshold divided by,
      (ii) the difference between the higher and lower target, multiplied by (iii)
      the
      higher pay-out target percentage.

    

    Additional
      Explanatory Notes

    

    *    At
      the
      option of the CFO, subject to the approval of the Compensation Committee, and
      subject to shareholder approval of amendments to the 1998 employee stock option
      plan to permit restricted stock grants, the CFO may be awarded up to 25% of
      the
      incentive compensation award in the form of restricted stock with a vesting
      schedule approved by the Compensation Committee.

    

    *    Mr.
      Biro
      agrees that this Plan constitutes his “Annual Incentive Bonus” calculation (as
      defined in and in accordance with his employment agreement with the Company)
      for
      the Company’s fiscal year 2007, and that his employment agreement is effectively
      amended to reflect this.CEO Employment Agreement

     

    EXHIBIT
      10.73

    

    EMPLOYMENT
      AGREEMENT

    

    

    THIS
      EMPLOYMENT AGREEMENT
      is dated
      as of January 18, 2007, between Imaging
      Diagnostic Systems, Inc.,
      a
      Florida corporation (the “Company”), and
      Timothy B. Hansen (the
      “Executive”).

    

    WITNESSETH:

    

    WHEREAS,
      the
      Company is engaged in the business of developing laser-based medical optical
      imaging devices; and 

    

    WHEREAS,
      the
      Company has the intent to market and sell its products and services to clients
      and potential clients throughout the world; and

    

    WHEREAS,
      the
      Company wishes to continue to employ the Executive as its Chief Executive
      Officer, charged with all the responsibilities and duties as set forth in the
      Company’s bylaws for both the CEO and President; and

    

    WHEREAS,
      the
      Company wishes for the Executive to continue to serve as a member of its Board
      of Directors; and

    

    WHEREAS,
      in the
      course of the Executive’s employment, the Executive will continue to have access
      to and acquire knowledge of valuable trade secrets, confidential information
      and
      other proprietary information belonging and relating to the Company and its
      business, and which the Company has a legitimate interest in protecting; and
      

    

    WHEREAS,
      the
      Company and Executive are willing to continue the employment, subject to the
      terms and conditions contained in this Employment Agreement (the
“Agreement”);

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants set forth in this
      Agreement, and intending to be legally bound, the Company and the Executive
      agree as follows:

    

    1. EMPLOYMENT.
      The
      Company hereby continues the employment of the Executive and the Executive
      hereby accepts employment upon the terms and condition hereinafter set forth.
      For so long as the Executive is employed hereunder, the Company shall nominate
      the Executive for reelection to its Board of Directors at each annual meeting
      of
      shareholders and the Executive shall serve as a Director if
      elected.

    

    2. TERM
      & TERMINATION.

    

    (a) Term. 
      The
      Company hereby continues the employment of the Executive, and the Executive
      hereby accepts employment with the Company, for a period commencing on

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    January
      18, 2007, and ending three years from that date (the “Term”). All Company
      obligations under this Agreement shall cease upon expiration of the Term, except
      for those stock options which have been vested. 

    

    (b) Termination
      without Cause.
      The
      Company may terminate the Executive’s employment without cause. Such termination
      will become effective upon the date specified in the termination notice,
      provided that such date is at least 60 days from the date of such notice. In
      the
      event of such termination without cause:

    

    (i) The
      Company will continue to pay the Executive his salary pursuant to Section 3(a)
      for 24 months or through the expiration of the Term, whichever is
      longer.

    

    (ii) The
      Company will continue to maintain through the expiration of the Term, for the
      benefit of the Executive, the employee benefit programs referred to in Section
      3(b) as in effect on the date of termination.

    

    (iii) On
      the
      effective date of termination, all options that were scheduled to vest will
      vest
      and will remain exercisable for a period of 10 years from the date of this
      Agreement.

    

    (iv) The
      compensation payments and other consideration to which the Executive is entitled
      on termination without cause shall not be diminished or otherwise affected
      by
      any employment thereafter obtained or income thereafter earned by Executive
      nor
      will the Company maintain that it is entitled to mitigation of amounts owed
      under this section for any reason.

    

    (c) Termination
      for Cause.
      The
      Company may terminate the Executive’s employment at any time for cause by giving
      written notice of termination setting forth such cause. Such termination shall
      become effective upon the giving of such notice, except that, where the basis
      for cause is capable of cure within 30 days, termination based upon cause shall
      not become effective unless Executive shall fail to complete such cure within
      30
      days of receipt of written notice of the existence of such cause. Upon such
      termination the Executive shall have no right to compensation, commission,
      bonus, benefits or reimbursement pursuant to this Agreement, for any period
      subsequent to the effective date of termination. Further, upon termination
      for
      cause, all of the Executive’s unvested stock options shall terminate. For
      purposes of this section, “cause” shall mean: (1) the Executive is convicted of
      a felony; (2) the Executive, in carrying out his duties hereunder, commits
      gross
      negligence or willful misconduct resulting, in either case, in material harm
      to
      the Company; (3) the Executive misappropriates Company funds or otherwise
      defrauds the Company; (4) the Executive materially breaches any provision of
      this Agreement; or (5) the Executive materially fails to perform his duties
      under section 4 resulting in material harm to the Company.

    

    (d) Death
      or Disability.
      Upon
      the death or disability of the Executive, the Executive shall be entitled to
      and
      the Company will pay the Executive’s salary from the date of death or from the
      date of disability for six months or through the end of the Term, whichever
      is

    
      
        
        

      

      
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    longer.
      (For purposes of this Section, “disability” shall mean that for a period of six
      months in any 12-month period the Executive is incapable of substantially
      fulfilling his duties because of physical, mental or emotional incapacity
      arising from injury, sickness or disease.) Should the Executive be rendered
      disabled, the Company will continue to maintain for the benefit of the Executive
      the employee benefit programs referred to in Section 3(b) that were in effect
      on
      the date of the disability.

    

    (e) Special
      Termination.
      In the
      event that (i) the Executive, with or without a change in title or formal
      corporate action, shall no longer exercise all of his customary duties and
      responsibilities and shall no longer possess substantially all the authority
      customary for a CEO in a publicly-traded company; (ii) the Company materially
      breaches this Agreement or the performance of its duties and obligations
      hereunder; or (iii) any entity or person not now an executive officer of the
      Company becomes either individually or as part of a group the beneficial owner
      of 20% or more of the Company’s common stock, the Executive, by written notice
      to the Company, may elect to deem the Executive’s employment hereunder to have
      been terminated by the Company without cause under Section 2(b) hereof, in
      which
      event the Executive shall be entitled to the compensation provided for in
      Section 2(b).

    

    (f) Voluntary
      Termination.
      The
      Executive, on 30 days prior written notice to the Company, may terminate his
      employment voluntarily. Upon such termination, the Company will pay the
      Executive’s compensation through the date of such termination. After such date,
      the Executive shall no longer be entitled to receive any compensation,
      reimbursement or benefits, and all unvested stock options shall terminate upon
      termination of the Executive’s employment. 

    

    (g) Continuing
      Effect. Notwithstanding
      any termination of this Agreement at the end of the Term or otherwise, the
      provisions of Sections 6 - 11 shall remain in full force and effect and the
      provisions of these Sections shall be binding upon the legal representatives,
      heirs, successors and assigns of the Executive.

    

    3. COMPENSATION.

    

    (a) The
      Company will pay the Executive an annual base salary of $260,000 per annum
      in
      equal semi-monthly installments. The salary will be reviewed annually, but
      at a
      minimum will increase (but not decrease) by the increase in the Consumer Price
      Index-All Urban Wage Earnings (or similar index) from year-to-year.

     

    

    (b) During
      the term of his employment, the Executive shall be entitled to participate
      in
      employee benefits plans or programs of the Company, if any, to the extent the
      Executive is eligible to participate thereunder, including the Comprehensive
      Group Insurance Program maintained by the Company, paid by the Company for
      the
      Executive and his spouse.

    

    (c) The
      Company will reimburse or advance funds to the Executive for all reasonable
      travel, entertainment and miscellaneous expenses incurred in connection with
      the
      performance of duties under this Agreement, provided that the Executive properly
      accounts for such expenses to the Company in accordance with the Company’s
      practices.

     

    
      
        
        

      

      
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    (d) The
      Company shall provide the Executive with a $500 per month car allowance and
      a
      cellular phone and major credit card for use on Company business.

    

    (e) The
      Executive shall receive an option to purchase up to an aggregate of 3,000,000
      shares of the Company’s common stock at an exercise price of $.09 per share (the
      closing price on the date hereof). The option shall vest as
      follows:

     

    
      
        	 	
                (i)

              	
                Options
                  to purchase up to 500,000 shares may be exercised after 6 months
                  (July 18,
                  2007) of continuous employment.

              
	 	
                (ii)

              	
                Options
                  to purchase up to 500,000 shares may be exercised after 12 months
                  (January18, 2008) of continuous employment.

              
	 	
                (iii)

              	
                Options
                  to purchase up to 500,000 shares may be exercised after 18 months
                  (July
                  18, 2008) of continuous employment.

              
	 	
                (iv)

              	
                Options
                  to purchase up to 500,000 shares may be exercised after 24 months
                  (January
                  18, 2009) of continuous employment.

              
	 	
                (v)

              	
                Options
                  to purchase up to 500,000 shares may be exercised after 30 months
                  (July
                  18, 2009) of continuous employment.

              
	 	
                (vi)

              	
                Options
                  to purchase up to 500,000 shares may be exercised after 36 months
                  (January
                  18, 2010) of continuous employment.

              

      

       

      During
        the Term of this Agreement, the Company shall register from time to time
        pursuant to a registration statement(s) on Form S-8 that number of shares
        of
        common stock as shall be sufficient to cover Executive’s option granted
        hereunder. In the event that the Company experiences a Change of Control
        (as
        defined in the Executive’s stock option agreement of even date) then all options
        will vest immediately. Also, in the event the Executive’s employment is
        terminated without cause, all options will vest immediately. In the event
        the
        Executive’s employment is terminated with cause, only that portion of the option
        exercisable at the time of such termination of employment may thereafter
        be
        exercised, and then only for three months after said termination or until
        the
        expiration of the option, whichever is sooner.

    

     

    (f) The
      Executive will be entitled to nine paid holidays and six weeks of vacation
      for
      each 12-month period without loss of compensation or other benefits to which
      he
      is entitled under this Agreement, to be taken at such times as the Executive
      may
      select and the affairs of the Company may permit.

    

    4. DUTIES.

    

    (a) General
      Duties.
      The
      Executive shall be employed as the Chief Executive Officer, with duties and
      responsibilities that are customary for such position, subject to the direction
      of the Board of Directors and as directed by the Company’s by-laws for both the
      CEO and President. The Executive will use the standard of care befitting of
      such
      an executive in performing duties and in discharging responsibilities pursuant
      to this Agreement, which duties and responsibilities shall be discharged
      competently, carefully, and faithfully.

    
      
        
        

      

      
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    (b) Corporate
      Code of Conduct.
      The
      Executive agrees to adhere to the Company’s Corporate Code of
      Conduct.

    

    (c) Extent
      of Services.
      The
      Executive will devote all of his time, attention and energies during normal
      business hours (exclusive of periods of sickness and disability and of such
      normal holiday and vacation periods as have been established by the Company)
      to
      the affairs of the Company. The Executive will not enter the employ of, or
      serve
      as a consultant to, or in any way perform any services with or without
      compensation to any person, business or organization without the prior consent
      of the board of directors of the Company; provided, that the Executive shall
      be
      permitted to devote a limited amount of time, without compensation, to
      charitable or similar organizations.

    

    5. PLACE
      OF PERFORMANCE.
      The
      Executive hereby acknowledges that the Company’s existing and potential clients
      are located throughout the world and that the Company is actively engaged in
      marketing and selling its products and services to such clients throughout
      the
      world.

    

    6. NON-DISCLOSURE
      OF CONFIDENTIAL INFORMATION.
      The
      Executive acknowledges that, during his employment, he will learn and will
      have
      access to confidential information regarding the Company and its affiliates,
      including without limitation (i) proprietary or secret plans, designs,
      processes, programs, documents, software, agreements or material relating to
      the
      business, products, services or activities of the Company and its affiliates
      and
      (ii) market reports, customer investigations, clinical data, scientific or
      engineering research, customer lists and/or similar information that is
      proprietary information of the Company or its affiliates (collectively,
“Confidential Business and Technical Information”). The Executive recognizes and
      acknowledges that the Confidential Business and Technical Information, as it
      may
      exist from time to time, represents valuable, special and unique assets of
      the
      Company access to and knowledge of which are essential to the performance of
      the
      Executive’s duties hereunder.

    

    The
      Executive will not, during or after the term of his employment by the Company,
      in whole or in part, disclose any such Confidential Business and Technical
      Information to any person, firm, corporation, association or entity for any
      reason or purpose whatsoever, nor shall the Executive make use of any such
      Confidential Business and Technical Information for his own purposes or for
      the
      benefit of any person, firm, corporation or entity except the Company under
      any
      circumstances during or after the term of his employment, provided that after
      the term of his employment these restrictions shall not apply to such secrets,
      information and processes which are then in the public domain provided that
      the
      Executive was not responsible, directly or indirectly, for such secrets,
      information or processes entering the public domain without the Company’s
      consent.

    

    In
      the
      event an action is instituted and prior knowledge is an issue, it shall be
      the
      obligation of the Executive to prove by clear and convincing evidence that
      the
      Confidential Business and Technical Information disclosed was in the public
      domain, was already known by the recipient, or was developed independently
      by
      the recipient. The Executive agrees to hold as 

    
      
        
        

      

      
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    the
      Company’s property all memoranda, books, papers, letters, formulas and other
      data, and all copies thereof and therefrom, in any way containing Confidential
      Business and Technical Information or otherwise relating to the Company’s
      business and affairs, whether made by him or otherwise coming into his
      possession, and upon termination of his employment, or on demand of the Company,
      at any time, to deliver the same to the Company.

    

    7. NON-COMPETITION
      AGREEMENT.

    

    (a) The
      Executive acknowledges and agrees that, pursuant to Florida Statutes Section
      542.335, based on having access to and acquiring knowledge of highly sensitive
      and valuable trade secrets, and confidential or proprietary information
      belonging or relating to the Company, the Executive would be in a position
      to
      cause serious and irreparable harm to the Company in the event that, following
      the termination of his employment hereunder, the Executive were to compete
      with
      or be involved in an enterprise which competes with the Company, engages in
      the
      same business as the Company, or performs research and development in the field
      of medical optical imaging. 

    

    (b) Until
      termination of his employment and for a period of 24 months commencing on the
      date of termination, the Executive, directly or indirectly, in association
      with
      or as a stockholder, director, officer, consultant, executive, partner, joint
      venturer, member or otherwise of or through any person, firm, corporation,
      partnership, association or entity, covenants that the Executive will not
      compete with the Company or any of its affiliates in the design, manufacture,
      construction, offer, sale or marketing of products or services that are
      competitive with the products or services offered by the Company during such
      period, within the United States or anywhere in the world. The Executive
      covenants and agrees that during his employment and for a period of 24 months
      immediately following the termination of such employment, the Executive will
      not, either individually or in partnership or jointly or in conjunction with
      any
      person, firm, business, corporation, partnership, joint venture, entity,
      syndicate or association, as an executive, principal, agent, officer, director,
      consultant, advisor, distributor, dealer, contractor, trustee, lender,
      shareholder or in any manner or capacity whatsoever, directly or indirectly,
      be
      employed by, render services to, carry on or be engaged in, or be concerned
      with
      or be interested in or advise, lend money to, guarantee the debts or obligations
      of, or in any manner participate in the management, operation or control of
      any
      business which is directly competitive with the business of the Company, engages
      in the same business as the Company or performs research and development in
      the
      medical optical imaging field with any entity located anywhere in the
      world.

    

    (c) For
      the
      purposes of this paragraph a business shall be deemed to be in “direct
      competition” or “directly competitive” with the Company if such business is
      engaged in developing, manufacturing, marketing, selling, or distributing
      medical optical imaging devices.

    

    8. NON-SOLICITATION.
      The
      Executive covenants and agrees that while he is employed by the Company and
      for
      a period of 24 months immediately following the termination of such employment,
      he will not, directly or indirectly, in any manner whatsoever, on his own
      behalf, or on behalf of any person, firm, business, corporation, partnership,
      joint venture, entity, 

    
      
        
        

      

      
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    syndicate
      or association solicit, induce or cause, or attempt to induce or cause, any
      person who is then an employee of or consultant to the Company to cease
      providing services to the Company.

    

    9. REASONABLENESS
      OF CONFIDENTIALITY, NON-COMPETITION AND NON-SOLICITATION OBLIGATION AND
      COVENANTS.

    

    (a) The
      Executive hereby acknowledges and confirms that the obligations and covenants
      set out in the above paragraphs are reasonable and necessary to protect the
      legitimate interests of the Company. Without limiting the generality of the
      foregoing, the Executive hereby acknowledges and confirms that given, among
      other things, the nature and international scope of the Company’s operations and
      of the employment duties to be performed by the Executive hereunder, the
      geographic scope and duration of the restrictions set forth above are reasonable
      and necessary to protect the legitimate interests of the Company.

    

    (b) The
      Executive further acknowledges and agrees that these obligations and covenants
      will not preclude him from becoming gainfully employed following their
      termination of his employment in his profession.

    

    10. INVENTIONS.

    

    (a) The
      Executive hereby sells, transfers and assigns to the Company or to any person
      or
      entity designated by the Company, all of the entire right, title and interest
      of
      the Executive in and to all inventions, ideas, disclosures and improvements,
      whether patented or unpatented, and copyrightable material, made or conceived
      by
      the Executive, solely or jointly, in whole or in part, during the term hereof
      which (i) relate to methods, apparatus, designs, products, processes or devices
      sold, leased, used or under construction or development by the Company or any
      subsidiary, or (ii) otherwise relate to or pertain to the business, functions
      or
      operations of the Company or any subsidiary, or (iii) arise wholly or partly
      from the efforts of the Executive during the term hereof. The Executive shall
      communicate promptly and disclose to the Company, in such form as the Company
      requests, all information, details and data pertaining to the aforementioned
      inventions, ideas, disclosures and improvements; and, whether during the term
      hereof or thereafter, the Executive shall execute and deliver to the Company
      such formal transfers and assignments and such other papers and documents as
      may
      be required of the Executive at the Company’s expense to permit the Company or
      any person or entity designated by the Company to file and prosecute the patent
      applications and, as to copyrightable material, to obtain copyright thereon.
      Any
      invention made by the Executive within one year following the termination of
      employment shall be deemed to fall within the provisions of this Section unless
      proven by the Executive to have been first conceived and made following such
      termination.

    

    (b) No
      Payment.
      The
      Executive acknowledges and agrees that no separate or additional payment or
      compensation will be required to be made to him in consideration of his
      undertakings in this Section.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    11. EQUITABLE
      RELIEF.

    

    (a) The
      Company and the Executive recognize that the services to be rendered under
      this
      Agreement by the Executive are special, unique and of extraordinary character,
      and that in the event of the breach by the Executive of the terms and conditions
      of this Agreement or if the Executive, without the prior consent of the Board
      of
      Directors of the Company, shall leave his employment for any reason and take
      any
      action in violation of Section 6, Section 7 or Section 8, the Company will
      be
      entitled to institute and prosecute proceedings in any court of competent
      jurisdiction referred to in Section 11(b) below, to enjoin the Executive from
      breaching the provisions of Section 6, Section 7, or Section 8. In such action,
      the Company will not be required to plead or prove irreparable harm or lack
      of
      an adequate remedy at law. Nothing contained in this Section 11 shall be
      construed to prevent the Company from seeking such other remedy as the Company
      may elect in any arbitration proceeding based on any breach of this Agreement
      by
      the Executive.

    

    (b) Any
      proceeding or action for equitable relief must be commenced in state court
      in
      Broward County, Florida. The Executive and the Company irrevocably and
      unconditionally submit to the jurisdiction of such court and agree to take
      any
      and all future action necessary to submit to the jurisdiction of such court.
      The
      Executive and the Company irrevocably waive any objection that they now have
      or
      hereafter may have to the laying of venue of any suit, action or proceeding
      brought in such court for equitable relief and further irrevocably waive any
      claim that any such suit, action or proceeding brought in such court has been
      brought in an inconvenient forum.

    

    12. ASSIGNMENT. The
      rights and obligations of the Company under this Agreement shall inure to the
      benefit of and be binding upon the successors and assigns of the Company,
      provided that any such successor or assign shall acquire all or substantially
      all of the assets and business of the Company. The Executive's obligations
      hereunder may not be assigned or alienated and any attempt to do so by the
      Executive will be void.

    

    13. SEVERABILITY.

    

    (a) The
      Executive expressly agrees that the character, duration and geographical scope
      of the provisions set forth in this Agreement are reasonable in light of the
      circumstances, as they exist on the date hereof. Should a decision, however,
      be
      made at a later date by a court of competent jurisdiction that the character,
      duration or geographical scope of such provisions is unreasonable, then it
      is
      the intention and the agreement of the Executive and the Company that this
      Agreement shall be construed by the court in such a manner as to impose only
      those restrictions on the Executive's conduct that are reasonable in the light
      of the circumstances and as are necessary to assure to the Company the benefits
      of this Agreement. If, in any judicial proceeding, a court shall refuse to
      enforce all of the separate covenants deemed included herein because taken
      together they are more extensive than necessary to assure to the Company the
      intended benefits of this Agreement, it is expressly understood and agreed
      by
      the parties hereto that the provisions of this Agreement that, if eliminated,
      would permit the 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    remaining
      separate provisions to be enforced in such proceeding shall be deemed
      eliminated, for the purposes of such proceeding, from this
      Agreement.

    

    (b) If
      any
      provision of this Agreement otherwise is deemed to be invalid or unenforceable
      or is prohibited by the laws of the state or jurisdiction where it is to be
      performed, this Agreement shall be considered divisible as to such provision
      and
      such provision shall be inoperative in such state or jurisdiction and shall
      not
      be part of the consideration moving from either of the parties to the other.
      The
      remaining provisions of this Agreement shall be valid and binding and of like
      effect as though such provision were not included.

    

    14. NOTICES
      AND ADDRESSES. All
      notices, offers, acceptance and any other acts under this Agreement (except
      payment) shall be in writing, and shall be sufficiently given if delivered
      to
      the addressee in person, by Federal Express or similar receipted delivery,
      by
      facsimile delivery or, if mailed, postage prepaid, by certified mail, return
      receipt requested, as follows:

    

    
      	
              To
                the Company:

            	
              Imaging
                Diagnostic Systems, Inc.

            
	 	
              6531
                N.W. 18th
                Court

            
	 	
              Plantation,
                Florida 33313

            
	 	 
	
              To
                the Executive:

            	
              Timothy
                Hansen

            
	 	
              6531
                N.W. 18th
                Court

            
	 	
              Plantation,
                Florida 33313

            

    

    

    or
      to
      such other address as either of them, by notice to the other may designate
      from
      time to time. The transmission confirmation receipt from the sender's facsimile
      machine shall be conclusive evidence of successful facsimile delivery. Time
      shall be counted to, or from, as the case may be, the delivery in person or
      by
      mailing.

    

    15. COUNTERPART. This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original but all of which together shall constitute one and the same
      instrument. The execution of this Agreement may be by actual or facsimile
      signature.

    

    16. ARBITRATION. Except
      for any controversy or claim seeking equitable relief as provided in Section
      11
      of this Agreement, any controversy or claim arising out of or relating to this
      Agreement, or to the interpretation, breach or enforcement thereof or any other
      dispute between the parties, shall be submitted to one arbitrator and settled
      by
      arbitration in Fort Lauderdale, Florida, in accordance with the commercial
      arbitration rules of the American Arbitration Association in effect at such
      time. Any award made by such arbitrator shall be final, binding and conclusive
      on all parties hereto for all purposes, and judgment may be entered thereon
      in
      any court having jurisdiction thereof.

    

    17. ATTORNEYS
      FEES.
      In the
      event that there is any controversy or claim arising out of or relating to
      this
      Agreement, or to the interpretation, breach or enforcement thereof, and any
      action or proceeding is commenced to enforce the provisions of this Agreement,
      whether through litigation or arbitration, the prevailing party shall be
      entitled to recover from the non-prevailing party his/its reasonable attorney’s
      fees, costs and expenses incurred at all levels.

    

    18. GOVERNING
      LAW. This
      Agreement and any dispute, disagreement, or issues of construction or
      interpretation arising hereunder whether relating to its execution, its
      validity, the obligations provided therein or performance shall be governed
      or
      interpreted according to the internal laws of the State of Florida without
      regard to choice of law considerations.

    

    19. ENTIRE
      AGREEMENT.
      This
      Agreement constitutes the entire Agreement between the parties and supersedes
      all prior oral and written agreements between the parties with respect to the
      employment of the Executive; provided, however, that all pre-existing option
      agreements between the Company and the Executive shall remain in full force
      and
      effect. Neither this Agreement nor any provision hereof may be changed, waived,
      discharged or terminated orally, except by a statement in writing signed by
      the
      party or parties against whom enforcement or the change, waiver, discharge
      or
      termination is sought.

    

    20. ADDITIONAL
      DOCUMENTS.
      The
      parties hereto shall execute and deliver such additional instruments as may
      be
      reasonably required in order to carry out the purpose and intent of this
      Agreement and to fulfill the obligations of the parties hereunder.

    

    21. SECTION
      AND PARAGRAPH HEADINGS.
      The
      section and paragraph headings in this Agreement are for reference purposes
      only
      and shall not affect the meaning or interpretation of this
      Agreement.

    

    22. WAIVER
      OF BREACH.
      A waiver
      by the Company or the Executive of a breach of any provision of the Agreement
      by
      the other party shall not operate or be construed as a waiver of any subsequent
      breach by the other party.

    

    

    

    

    

    

    

    

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        9

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Company and the Executive have executed this Agreement as of the 18th day of
      January, 2007.

     

     

    
      	
              IMAGING
                DIAGNOSTIC SYSTEMS, INC.

               

               

              By:
                /s/ Jay Bendis

              Jay
                Bendis, Co-Chairman of the Board

            	
              EXECUTIVE

               

               

              By:
                /s/ Timothy B. Hansen

              Timothy
                B. Hansen, Chief Executive Officer

            

    

    

     

     

     

     

     

     10

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