Document:

Exhibit 10.1

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Second Amendment
to that certain employment letter dated as of March 2, 2004 (the “Employment
Agreement”), and the subsequent amendment dated April 13, 2005, (the “First
Amendment”), by and between Bally Technologies (formerly known as Alliance
Gaming Corporation), a Nevada corporation (the “Company”) and Robert Luciano (“Luciano”),
is made and entered into as of May 16, 2008, by and between the Company
and Luciano (the “Second Amendment”).

 

WHEREAS, the
Employment Agreement and the First Amendment provide for Luciano’s employment
by Bally Gaming, Inc. (“Bally”), as
Chief Technology Officer of Bally, and

 

WHEREAS, the
Company and Luciano desire to amend the Employment Agreement and First Amendment
as follows.

 

NOW THEREFORE,
on the basis of the foregoing premises and in consideration of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

 

1.             Section 3(c) of
the First Amendment is hereby deleted in its entirety and replaced with the
following:

 

(c)           from and after December 31,
2007, Luciano may devote up to 60% of his business time to interests other than
the business of Bally.

 

2.             Section 4
of the First Amendment is hereby deleted in its entirety and replaced with the
following:

 

4.             Expenses.
Bally shall provide Luciano an allowance of $5,000 per month for expenses
incurred by Luciano for housing, meals and family member travel in Las Vegas so
long as Luciano maintains a home in Las Vegas while employed by the Company.

 

3.             The
Section of the Employment Agreement entitled “Salary”
is hereby deleted in its entirety and replaced with the following:

 

Salary.
Effective as
of January 1, 2008, your annual base salary will be $150,000 for
all purposes under the Employment Agreement and the First Amendment.

 

4.             The
Sections of the Employment Agreement entitled “Annual Bonus,”
“Management Incentive Program,” “MIP Continuation” and the reference to “MIP
Continuation” in the Section of the Employment Agreement
entitled “Covenant not to compete” are hereby
deleted in their entirety and replaced with the following:

 

Annual
Bonus, MIP and Equity Grants. Bally may consider
Luciano for an annual bonus and equity grants at Bally’s sole discretion.

 

5.             Section 1
of the First Amendment is hereby maintained with the addition of the following
sentence:

 

 

Notwithstanding the foregoing, from and after January 1, 2008, Luciano’s
title may be changed, at Bally’s sole discretion, to a different title, as
Bally deems appropriate.

 

6.             Section 5
of the First Amendment is hereby modified such that reference to $250,000 is
replaced by $150,000.

 

7.             The
parties to this Second Amendment hereby agree and acknowledge that Bally will,
to the extent reasonably practicable and permissible under applicable law and
the terms of Bally’s medical benefit plans, provide Luciano and his eligible
dependents with medical benefits under Bally’s medical plans for active
employees at a time when Luciano is allowed to re-enter the medical plan;
provided, however, if such re-entry is not practicable or permissible, Bally
agrees to reimburse Luciano for his actual cost incurred in obtaining similar medical
coverage either pursuant to COBRA or, if COBRA coverage is not available,
through such alternate coverage as Luciano may obtain; provided, further, that
such reimbursement shall in any event be limited to an amount similar to the
costs incurred by Bally in providing comparable coverage to full-time employees
under Bally’s medical benefit plans as in effect on the date hereof.

 

8.             Except
as expressly modified by this Second Amendment, the Employment Agreement and First
Amendment shall remain unchanged and shall remain in full force and effect.

 

IN WITNESS
WHEREOF, the Company and Luciano have duly executed this Second Amendment as of
the date first  above written.

 

	
  BALLY
  TECHNOLOGIES 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark
  Lerner

  	
   

  	
  By:

  	
  /s/ Robert
  Luciano

  
	
   

  	
  Mark Lerner,
  Secretary

  	
   

  	
   

  	
  Robert
  Luciano

  

 

2Exhibit 10.6

 

	
  

   

  	
  InSight
  Health Corp.

  26250 Enterprise Court

  Suite 100

  Lake Forest, CA
  92630-8405

   

  Telephone -  949.282.6000

  Facsimile - 949.452.0253

  

 

May 15, 2008

 

PERSONAL AND CONFIDENTIAL

 

Marilyn
U. MacNiven-Young

517 1⁄2
Marigold

Corona
Del Mar, CA 92625

 

Re:  Separation
Agreement

 

Dear
Marilyn:

 

This
Letter Agreement (“Agreement”) sets forth the terms and conditions of your
separation from InSight Health Services Holdings Corp. (“InSight” or “Company”)
and InSight Health Services Corp. (“IHSC”), in each case effective October 31,
2008 (“Effective Date”).  InSight will
pay your earned wages and any unused accrued vacation through October 31,
2008, regardless of whether you sign this Agreement.

 

In
consideration of the mutual covenants and promises made in this Agreement, you
and InSight agree as follows:

 

Termination.  Effective October 31, 2008 (“Effective
Date”) your employment, and any and all positions you held with InSight and any
of its subsidiary or affiliated entities (collectively “InSight Companies”), is
terminated, and as of that date you relinquish any and all of your authorities
with each of those companies.  You and
the Company agree that the Executive Employment Agreement dated as of December 7,
2001, between you and IHSC (“Employment Agreement”) will terminate on the
Effective Date and you shall not be entitled to any monetary compensation,
including any salary in lieu of notice, or any fringe benefits, perquisites or
other employment benefits from the InSight Companies, except as provided in
this Agreement, which supercedes the Employment Agreement.

 

Separation Payments.  In addition to your final paycheck and
payment for any unused accrued vacation through and including October 31,
2008, in accordance with the “Consideration Period” and “Revocation Period”
(defined below), and in consideration for your signing this Agreement, InSight
agrees to pay you an amount equal to your current regular monthly base salary,
less applicable taxes and withholdings required by law, on a regular payroll
basis, for a 

 

 

period of twelve (12)
months (“Separation Payments”).  Payments
will be made on the subsequent pay periods following the Effective Date.  The Separation Payments will be sent to your
home address as set forth above. 
Notwithstanding the foregoing, in the event that you breach any of the
terms and conditions of this Agreement, you shall no longer be entitled to
receive any Separation Payments following the date of such breach until such
time as you have cured such breach, if it is capable of being cured.  The amounts payable pursuant to this
paragraph shall not be reduced by the amount of any other compensation or
income you may receive from other full-time employment or any other sources
during the period you receive Separation Payments.

 

FY
2008 Incentive Compensation.  
Also, in accordance with the “Consideration Period” and Revocation
Period,” the Company agrees to pay you, if and when it is determined and
approved by the Company’s Compensation Committee, any FY 2008 incentive
compensation for which you may be eligible pursuant to the InSight Executive
Management Incentive Compensation Plan.

 

Outplacement
Counseling Services.  
As further consideration for signing this Agreement, the Company agrees
to provide you with outplacement counseling services through  a firm mutually agreed by you and the Company
for the six (6) month-period immediately following the Effective
Date.  Your outplacement counseling
benefits and limitations will be explained in a separate agreement.

 

Benefits.  As additional consideration for this
Agreement, the Company agrees to continue the employee benefits specified in
this paragraph until the first of the following occurs: (a) expiration of
the twelve (12) month period following the Effective Date; or (b) until
you are eligible for employment benefits as the result of full-time employment
with another employer.  The benefits you
will receive during the applicable period are life insurance, medical, health
and accident, and disability plans or programs (including Exec-U-Care) covering
you and any dependents under the same terms and conditions as if you had not
been terminated, including the payment by you of required premiums and
co-payments that are to be made by you. 
In the event that the Company is not able to keep you on the existing
Company plans for health insurance, during the period specified in (a) above,
the Company will pay both the Company and employee portion of all health
insurance premiums for continuation coverage under COBRA (as defined below) for
you and any currently insured dependents and you shall be responsible for the
payment of the  amount of any required
deductibles and co-payments as you were responsible for under the plans
immediately prior to the Effective Date. 
The Company’s agreement to provide these benefits during the applicable
period is contingent upon your participation being permissible under the
general terms and provisions of such plans and programs and contingent upon the
Company’s right to amend or terminate any employee benefit plans which are
applicable generally to the Company’s employees.  In the event of either of these
contingencies, you will cease to receive these benefits effective the date of
the occurrence of the contingency. 
However, in such an event, the Company agrees to arrange to provide you
with benefits and costs substantially similar to those you were receiving at
the time of your termination for the applicable period or its remainder as the
Company may obtain for the same costs it was paying for your benefits immediately
prior to the Effective Date.

 

2

 

Release.  In consideration of this Agreement, you
hereby irrevocably and unconditionally release, waive and forever discharge 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 you have ever had, may now have, or may later assert against any of the
Company Releasees, concerning, arising out of or related to your employment by
or the performance of any services to or on behalf of any of the InSight
Companies or the termination of that employment, those services and your
positions with the InSight Companies, from the beginning of time to the
Effective Date (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, 1871, 1964 and 1991 (including but not limited to
Title VII), the Age Discrimination in Employment Act of 1967, the National
Labor Relations Act, the Worker 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 anti-discrimination and
employment statutes; and (ii) any and all other of 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.  You also agree to waive all rights to sue or
obtain equitable, remedial or punitive relief from any or all Company Releasees
of any kind whatsoever including, without limitation, reinstatement, back pay,
front pay, attorney’s fees and any form of injunctive relief.  Notwithstanding the foregoing, this Agreement
shall not affect any of your rights or obligations under (a) the InSight
Health Services Corp. 401(k) Savings Plan (“InSight 401(k) Plan”), (b) the
Amended and Restated Indemnification Agreement executed by you and the Company
effective October 17, 2001 (“Indemnification Agreement”), (c) the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”), (d) workers’
compensation or unemployment insurance benefits claims, or (e) the terms
of this Agreement.

 

You
and the Company hereby waive and relinquish all rights and benefits afforded by
California Civil Code Section 1542. 
You 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 affected his settlement with the debtor.

 

3

 

To the fullest extent
permitted by law, you represent, warrant and agree 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. 
You hereby represent and warrant that you have 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.  You
further represent and warrant that you have not in the past and will not in the
future assign any of Executive’s Claims to any person, corporation or other
entity.

 

Your execution of this
Agreement operates as a complete bar and defense against any and all of
Executive’s Claims against the Company and each of the other Company Releasees
to the maximum extent permitted by law. 
If you 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.  You agree to disclaim and waive any right to
share or participate in any monetary award resulting from the prosecution of
any administrative investigation or proceeding.

 

Release by the Company.  In
consideration of this Agreement, the Company on behalf of itself, its parent
and subsidiary corporations (“Company Releasors”) hereby irrevocably and
unconditionally releases, waives and forever discharges you, your spouse,
family members, and heirs,(collectively, the “Executive 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 they have ever had, may now have, or may later assert
against the Executive Releasees, whether or not arising out of or related to
your employment by or the performance of any services to or on behalf of the
Company or the termination of that employment and those services, from the
beginning of time to the Effective Date (hereinafter referred to as “Company’s
Claims”), including without limitation, any and all other of Company’s Claims
arising out of or related to any contract, any and all 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, including, without limitation, any of Company’s Claims for any kind
of tortious conduct, promissory or equitable estoppel, breach of the Company’s
policies, rules, regulations, handbooks or manuals, breach of express or
implied contract or covenants of good faith, breach of duty of loyalty or
fiduciary duty.  Notwithstanding
the foregoing, this Agreement shall not affect any of the Company’s rights or
obligations under (a) the InSight 401(k) Plan, (b) the
Indemnification Agreement, (c) COBRA, (d) workers’ compensation or
unemployment insurance benefits claims, or (e) the terms of this
Agreement.

 

4

 

Further, notwithstanding
the foregoing, the Company’s Claims which are being released herein shall not
include any claims or causes of action that the Company Releasors may have
against you as of the Effective Date, which may arise from or be related to (i) any
acts or omissions undertaken by you, or undertaken at your express direction,
which constitute fraud, theft or embezzlement against the Company, or any act
that constitutes a felony under the laws of the United States or any state; or (ii) any
voluntary act undertaken by you in knowing and willful violation of a specific
written Company directive or policy, which causes the Company material harm or
subjects it to material liability.  The
Company is not currently aware of any claim that it may have for any matter
covered under this subparagraph.

 

To the
fullest extent permitted by law, the Company 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, against you or any of the other
Executive Releasees arising out of or related to Company’s Claims.  The Company hereby represents and warrants
that it has not brought any complaint, claim, charge, action or proceeding
against any of the Executive Releasees in any jurisdiction or forum, nor
assisted or encouraged any other person or persons in doing so.  The Company further represents and warrants
that it has not in the past and will not in the future assign any of Company’s
Claims to any person, corporation or other entity.

 

Execution of this Agreement by the Company operates
as a complete bar and defense against any and all of Company’s Claims against
you or any of the other Executive Releasees. 
If the Company should hereafter make any of Company’s Claims in any
charge, complaint, action, claim or proceeding against you or any of the other
Executive Releasees, this Agreement may be raised as and shall constitute a
complete bar to any such charge, complaint, action, claim or proceeding and you
and/or the other Executive Releasees shall be entitled to and shall recover
from the Company all costs incurred, including reasonable attorneys’ fees, in
defending against any such charge, complaint, action, claim or proceeding.

 

Continuing
Obligations to Company. 
You understand and agree that you have continuing obligations to the
Company as set for in Exhibit A attached hereto. Should you have a
legitimate question as to whether a particular prospective employment would be
in breach of your obligations under Exhibit A, you may make an inquiry to
the Company prior to accepting such a position and if the Company determines
that such potential employment will not be a breach of Exhibit A, it will
so advise you and/or your prospective employer in writing.

 

Cooperation.  Between the date hereof and the Effective
Date, you agree to ensure an orderly transition to such person or persons that
the Company may designate.  After the
Effective Date, you may be asked questions by the Company, its accountants,
financial advisors or attorneys relating to your former duties, to which you
agree to  respond in a reasonably timely
and responsible manner by providing such information as may be within your
knowledge.  You and the Company acknowledge
and agree that you may have future employment and other obligations that may
limit the amount of your time available to cooperate with the Company under
this paragraph and thus your reasonable cooperation will take into account any
such limitations.

 

5

 

Return
of InSight Property; Expenses.  As set forth in Exhibit A, you agree to
immediately return, on the Effective Date, all Company property and equipment
in your possession or under your control, including, but not limited to, credit
cards, keys, building access cards, manuals, notebooks, financial statements,
TREO, Blackberry, cell phone, reports and any other Company property.  You should in a timely manner submit to
InSight all outstanding business expenses incurred by you through the Effective
Date, for reconciliation and payment in accordance with the Company’s policies.

 

Legal
Representation.  You
and InSight each acknowledge that you have had the opportunity to receive the
advice of independent legal counsel prior to the execution of this Agreement
and the opportunity to receive an explanation from legal counsel of the legal
nature and effect of this Agreement, and you have fully exercised that
opportunity to the extent desired and you understand the terms and provisions
of this Agreement and its nature and effect. 
You further represent that you are entering into this Agreement freely
and voluntarily.

 

No
Admission of Liability. 
Nothing contained in this Agreement or the fact that InSight has signed
this Agreement shall be considered as admission of any liability whatsoever by
InSight.  This Agreement may not be
introduced in any action or proceeding by anyone for any purpose except to
evidence or to enforce its terms.

 

Confidentiality.  As a material inducement to InSight to enter
into this Agreement and as an indivisible part of the consideration to be
received for entering into this Agreement and for the performance of
obligations under this Agreement by each party to this Agreement, you agree
that you will not disclose, disseminate, and/or publicize or cause or permit to
be disclosed, disseminated, and/or publicized, any of the specific terms of
this Agreement, any claims or allegations or the basis for any claims or
allegations, which were or could have been made against InSight and its
divisions, affiliates, subsidiaries, predecessor and successor corporations,
and the past and present directors, officers, management committees,
stockholders, agents, servants, employees, representatives, administrators,
partners, general partners, managing partners, limited partners, benefit plan
fiduciaries and administrators, assigns, heirs, successors or predecessors in
interest, adjustors, insurers, and attorneys, which concern and are within the
scope of this Agreement, directly or indirectly, specifically or generally, to
any person, corporation, association, governmental agency, or other entity
except: (a) to the extent necessary to report income to appropriate taxing
authorities; (b) in response to an order of a court of competent
jurisdiction or a subpoena issued under authority thereof; (c) in response
to any subpoena issued by a state or federal governmental agency; or (d) as
otherwise required by law. 
Notwithstanding the foregoing, InSight may file this Agreement with the
Securities and Exchange Commission in accordance with the Securities Exchange
Act of 1934.

 

Assistance/Cooperation
Regarding Current or Future Litigation or Investigation.  In connection with InSight’s participation in
current or future litigation or investigation relating to events which occurred
during your employment with the Company and/or about which you have personal
knowledge or information, you agree to cooperate to the fullest extent possible
in the preparation, prosecution, or defense of the Company’s case or
investigation, including, but not limited to, meeting with the Company’s
counsel, the execution of truthful declarations, being a 

 

6

 

deponent
and/or witness, or providing information and/or documents requested by the
Company or any governmental agency.  You
further agree not to voluntarily assist any party, any current or former
employee of the Company, and/or attorney in any claim, dispute, charge, or
litigation adverse to the Company.  This
paragraph does not prohibit you from testifying truthfully pursuant to a
subpoena or lawful court order.  In
consideration of your agreement to cooperate in the event that the Company
requests your cooperation about any matter that does not specifically relate to
you or to an action taken by you during your employment with the Company, the
Company agrees to reimburse you for all your reasonably incurred out-of-pocket
expenses incurred in assisting the Company. 
You and the Company acknowledge and agree that you may have future
employment or other obligations that may limit the amount of your time
available to cooperate with the Company under this paragraph, and thus your
reasonable cooperation will take into account any such limitations.

 

Non
Disparagement.  As a
material inducement to InSight to enter into this Agreement, you agree that you
will not make any negative or disparaging comments about InSight or IHSC.  InSight agrees that it  will not make any negative or disparaging
comments about you.

 

Other
Agreements.  Except for
(i) Exhibit A, (ii) the InSight 401(k) Plan, and (iii) the
Indemnification Agreement, the terms of this Agreement supercede any and all
other agreements, understandings, negotiations, or discussions, either oral or
in writing, express or implied, among you, the Company and IHSC and this Agreement
shall operate to terminate all such other agreements between you and the
InSight Companies.

 

Successors.  This Agreement is binding upon the Company
and you and upon the Company’s and your respective successors, assigns, heirs,
executors, administrators and legal representatives.

 

No
Strict Construction. 
The language in this Agreement shall be deemed to be the language
mutually chosen by the parties to reflect their mutual intent and no doctrine
of strict construction shall apply against any party.

 

Entire
Agreement.  This
Agreement constitutes the full, complete, and exclusive agreement among
you,  InSight and IHSC with respect to
the subject matter  herein.  This Agreement cannot be changed unless in
writing, signed by you, InSight, and IHSC.

 

Waiver.  No waiver of any of the provisions of this
Agreement shall be deemed, or shall constitute, a waiver of any other
provision, whether or not similar.  No
waiver shall constitute a continuing waiver. 
No waiver shall be binding unless executed in writing by the party
charged with the waiver.

 

Severability.  In the event any provision of this Agreement
shall be determined to be unlawful, such provision shall be deemed to be
severed from this Agreement and every other provision of this Agreement shall
remain in full force and effect.

 

7

 

Headings.  The headings of the paragraphs of this
Agreement are for the purposes of convenience only, and shall not be deemed to
amend, modify, expand, limit or in any way affect the meanings of any of the
provisions hereof.

 

Governing
Law.  This Agreement is
made and entered into in 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.

 

Resolution
of Disputes.  Any
controversy or claim arising out of or relating to this Agreement, or any
breach thereof, will be submitted to final and binding arbitration in Orange
County, California, before a mutually agreed upon arbitrator from Judicial
Arbitration and Mediation Services (JAMS), as the exclusive remedy for such
controversy or dispute.  Judgment upon
any award rendered by the arbitrator may be entered in the Superior Court of
the County of Orange, State of California, which will have exclusive
jurisdiction thereof.  The prevailing
party in any proceeding brought to enforce the terms of this Agreement will be
entitled to recover from the other party all damages, costs and expenses,
including without limitation, attorneys’ and arbitrators’ fees, incurred as a
result of such action.  In agreeing to
this arbitration, you understand and agree that you are waiving  the
right  to  a  jury  trial as to any issue(s) subject
to this Agreement.  The decision of the
arbitrator will 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.  The parties agree that this
provision does not limit their right to seek injunctive relief in the threat of
imminent and irreparable harm as a result of breach of this Agreement.

 

Consideration
Period.  You have until
5:00 p.m. on June 5, 2008, or twenty-one (21)  days from receipt of this Agreement to consider
it.  InSight hereby advises you to
consult with an attorney before signing this Agreement.

 

Revocation
Period.  For a period
of seven (7) days following the signing of this Agreement, you may revoke
this Agreement.  This Agreement does not
become effective or enforceable until the revocation period has expired without
you exercising your option to revoke.

 

Please
acknowledge your understanding and acceptance of this Agreement by signing this
Agreement below and returning it to me no later than 5:00 p.m. on June 5,
2008, or on the twenty-first (21st) day from the day you receive
this Agreement.  An extra copy of this
Agreement has been signed by me and is enclosed for your records.

 

8

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Louis E.
  Hallman, III

  	
   

  
	
   

  	
  Louis E.
  Hallman, III

  
	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
  InSight Health Services
  Corp. and

  
	
   

  	
  InSight Health Services
  Holdings Corp.

  

 

Enclosures

 

ACKNOWLEDGED
AND AGREED:

 

	
  Dated:
  May 15, 2008.

  	
  /s/
  Marilyn U. MacNiven-Young

  
	
   

  	
  Marilyn
  U. MacNiven-Young

  

 

9

 

EXHIBIT A

 

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”) and positron
emission tomography (“PET”) facilities, fixed-site MRI and PET 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 or unless such information is in the public domain.  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 his
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.

 

(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, 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.  Executive promises and agrees not to engage
in any unfair competition 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, including, but not
limited to, any stock options granted to Executive.

 

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.

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