Document:

Exhibit
10.3

EMPLOYMENT
AGREEMENT

BETWEEN

TEAM
FINANCIAL, INC.

AND

SANDRA J.
MOLL

TABLE OF
CONTENTS

	
  Section 

  	
   

  	
  Page No.

  
	
    1.

  	
  Term of Agreement and
  Definitions

  	
   

  	
  1

  
	
    2.

  	
  Entire Agreement

  	
   

  	
  2

  
	
    3.

  	
  Validity

  	
   

  	
  2

  
	
    4.

  	
  Paragraphs and other
  headings

  	
   

  	
  2

  
	
    5.

  	
  Successors

  	
   

  	
  2

  
	
    6.

  	
  Designation of
  beneficiaries

  	
   

  	
  2

  
	
    7.

  	
  Duties

  	
   

  	
  3

  
	
    8.

  	
  Salary, Bonus,
  Benefits, Additional Compensation

  	
   

  	
  3

  
	
    9.

  	
  Protection of Company’s
  Interests

  	
   

  	
  5

  
	
  10.

  	
  Termination by Company

  	
   

  	
  5

  
	
  11.

  	
  Termination by
  Executive

  	
   

  	
  7

  
	
  12.

  	
  Consequences of Breach

  	
   

  	
  9

  
	
  13.

  	
  Mitigation and Offset

  	
   

  	
  10

  
	
  14.

  	
  Tax “Gross-Up”
  Provision

  	
   

  	
  10

  
	
  15.

  	
  Remedies

  	
   

  	
  10

  
	
  16.

  	
  Binding Agreement

  	
   

  	
  10

  
	
  17.

  	
  Arbitration

  	
   

  	
  10

  
	
  18.

  	
  Amendment; Waiver

  	
   

  	
  10

  
	
  19.

  	
  Governing Law

  	
   

  	
  11

  
	
  20.

  	
  Notices

  	
   

  	
  11

  
	
  Signatures

  	
   

  	
  11

  

 

	
  

  	
  EMPLOYMENT
  AGREEMENT

  BETWEEN
 TEAM FINANCIAL, INC.
 AND
 SANDRA J. MOLL

  	
   

  

 

This Agreement is made
this 1st day of January, 2007, between Team Financial, Inc. located in Paola,
Kansas (“Company”) and Sandra J.
Moll (“Executive”).

A.            Executive is employed as Executive
Vice President Chief Operating Officer, Executive Vice President Retail Sales,
has rendered valuable services to Company, and has acquired a background in and
knowledge of Company’s business.

B.            Company desires to continue the
services of Executive and Executive desires to continue to serve Company as
Executive Vice President Chief Operating Officer, Executive Vice President
Retail Sales.

In consideration of the foregoing recitals and the agreements set forth
herein, Company and Executive agree as follows:

1.             Term of Agreement and Definitions:

1.0          Term
of Agreement:  Company
shall employ Executive and Executive accepts such employment for a term
beginning on the date of this Agreement and ending the 31st day of December, 2007,
subject to the terms and condition set forth herein, unless earlier termination
of the agreement shall occur in accordance with the subsequent provisions set
forth herein.

1.1          Automatic
Extension of Agreement Term: 
Not withstanding the foregoing, if this Agreement shall not have been
terminated in accordance with the provisions herein on or by the 31st day of
December, 2007; the term of this Agreement shall be extended automatically
without further action by either party such that at every moment of time
thereafter, the term shall be one year.

Provided, however, during such period of automatic extension of the
term, this Agreement may be terminated in accordance with the termination
provisions of this Agreement as set forth in Sections 10 and 11.

1.2          Definitions:
The following definitions shall be used in the interpretation of this
Agreement.

1.2.1       Employment
on an active full time basis means the Executive’s
professional services shall be substantially devoted to Company.  The Company shall have the right to review
any employment of Executive by any entity and shall have the right to require
Executive to abandon any unsuitable employment as may be determined by Company
or any activities competitive with Company. The term “active full time” basis
includes the requirement that Executive refrain from any activities which
interfere with Executive’s Company duties.

1.2.2       Year,
Month, Week and Day, unless otherwise provided in this
agreement, the word “year” shall be construed to mean a calendar year of 365
days, the word “month” shall be construed to mean a calendar month, the word “week”
shall be construed to mean a calendar week of 7 days, and the word “day” shall
be construed to mean a period of 24 hours running from midnight to midnight.

1.2.3       Annual
Base Salary is the sum of money regularly paid by Company to
Executive each year of the term of this Agreement pursuant to provisions of
Section 8.0 of this Agreement.

1.2.4       Customary
payroll practices are those policies and procedures routinely
followed by the Company concerning the time and method of payment of
compensation to its employees as may from time to time be 

 1
 

adopted by the Company during course of this Agreement.

1.2.5       Company policies are those written policies
adopted by the Company and/or customary practices routinely followed by the
Company which may from time to time be adopted by the Company during the course
of the Agreement.  The parties
acknowledge the Company may from time to time reasonably enact new policies or
alter existing policies.

1.2.6       Organization
as used herein shall be broadly defined to include any business, civic or
community group or entity.

1.2.7       Willful
Misconduct is any act performed with a designed purpose or
intent on the part of a person to do wrong.

1.2.8       Gross
misappropriation of funds shall be any misappropriation of
company funds by any means which is intentional and not of an inconsequential
nature or amount.

1.2.9       Disability shall mean
either (i) that the Executive is incapable of engaging in any substantial
gainful occupation by reason of any medically determinable physical or mental
impairment which can be expected to result in death or to last for a continuous
period of not less than twelve (12) months, or (ii) that the Executive is, by
reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a  continuous 
period of not less than twelve (12) months, receiving income replacement
benefits for a period of not less than three(3) months under an accident and
health plan covering employees of the company.

2.             Entire Agreement

2.0           With respect to the
matters specified herein, this Agreement contains the entire agreement between
the parties and supersedes all prior oral and written agreements, understandings
and commitments between the parties. 
This Agreement shall not affect the provisions of any other
compensation, retirement or other benefit programs of Company to which
Executive is a party or of which Executive is a beneficiary.

3.             Validity

3.0           In the event that
any provision of this Agreement is held to be invalid, void or unenforceable,
the same shall not affect, in any respect whatsoever, the validity of any other
provision of the Agreement.

4.             Paragraphs and other headings

4.0           Paragraphs and other
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.

5.             Successors

5.0           The rights and
duties of a party hereunder shall not be assignable by that party; provided,
however, that this Agreement shall be binding upon and inure to the benefit of
any successor of Company, and any such successor shall be deemed substituted
for Company under the terms of this Agreement. 
The term “successor” as used herein shall include any person, firm,
corporation or other business entity which at any time, by merger, purchase or
otherwise, acquires all or substantially all of the assets or business of
Company.

6.             Designation of beneficiaries

6.0           If Executive should
die during the term of this Agreement, all such sums due to Executive hereunder
shall be paid as designated by Executive on the attached Beneficiary
Designation Form.

6.1           The spouse of the
Executive shall join in any designation of a beneficiary other than the spouse.

 2
 

6.2           If Executive wholly
fails to designate a beneficiary as provided for in this paragraph, or if the
Executive’s spouse at the time of death shall not have joined in the
designation of a beneficiary, then the sums due Executive shall be paid to the
estate.

7.             Duties

7.0           Company employs
Executive upon an active full-time basis, as Executive Vice President Chief
Operating Officer, Executive Vice President Retail Sales subject to the order
and direction of the CEO of Company.

7.1           During the term of
this Agreement Executive shall devote substantially all of her time, attention,
and best efforts to the business of Company. 
Executive shall perform such duties and shall exercise such power and
authority as delegated by the CEO from time to time provided that such duties
are commensurate with the position of Executive Vice President Chief Operating
Officer, Executive Vice President Retail Sales. 
Executive may engage in other non-business activities such as
charitable, educational, religious and similar types of activities so long as
such activities do not prevent the performance of Executive’s duties herein or
conflict in any material way with the business of Company.  Notwithstanding the above, Executive shall be
permitted to serve as a Director or Trustee of other organizations, in
accordance with the policies of Company.

7.2           The duties of  Executive shall be defined using a written
job definition, developed by the CEO. 
The CEO shall consult with Executive in the development of the written
job definition.  Executive and said
written job definition shall be subject to any systematic evaluation system(s)
that the Company may from time to time employ.

7.3           Executive’s duties
shall be performed principally at Company’s headquarters located in Paola,
Kansas.  During the term of the
Agreement, it is understood that Company expects to maintain its principal
place of business in Paola, Kansas.

8.             Salary, Bonus, Benefits, Additional
Compensation

8.0          Annual
Base Salary.

Executive shall receive an annual base salary of $148,240.00 payable
according to the customary payroll practices of Company and subject to all
required withholding taxes.  The CEO,
with the approval of the Company’s Board of Directors Compensation Committee,
may increase this annual base salary upon relevant circumstances.  Executive’s base salary will be reviewed at
least annually.  Any increase in annual
base salary awarded by the CEO will constitute a new annual base salary for the
purpose of the Agreement.

8.1          Bonus.

8.1.1       Standard
Company Bonuses.  Executive
shall be eligible to receive, in addition to salary, any contributions or sums
specified as additional compensation through any established plan or policy of
Company which is available to senior executives as compensation over and above
established salaries.

8.1.2       Annual
Executive Bonus.  In
addition, Executive shall be entitled to receive a yearly annual bonus.  The amount of such bonus shall be based upon
criteria established by the CEO and approved by the Company’s Board of
Directors Compensation Committee, and may include either or both stock and
cash.  Provided, however, such bonus
shall not exceed twenty percent (20%) of Executive’s annual base salary in
effect for the period for which the bonus is granted.  During the term of this Agreement, the yearly
annual bonus shall be paid not later than January 31st of the calendar year
following annual bonus year.

8.2          Benefits.

8.2.0        Executive shall be
entitled to receive all benefits generally made available to executives of
Company 

 3
 

as may from time to time be in effect.

8.2.1        Executive shall be
entitled to participate, during the term of the Agreement, under the terms and
conditions thereof, in any group life, medical, dental or other health and
welfare plans generally available to management personnel of Company which may
be in effect from time to time; provided that nothing herein shall require the
Company to establish or maintain such plans.

8.2.2        Executive Expenses. Executive shall be
entitled to reimbursement for business expenses.  Executive shall be expected to incur various
business expenses customarily incurred by persons holding like positions,
including but not limited to traveling, entertainment and similar expenses, all
of which are to be incurred by Executive for the benefit of Company.  Executive shall be subject to Company’s
policies regarding the reimbursement and non-reimbursement of said
expense.  Executive acknowledges that
Company policies do not necessarily provide for the reimbursement of all
expenses.

8.2.3        Accounting. 
Executive shall account to Company for any reimbursement or payment of
such expenses in such a manner as Company practices may from time to time
require.  Subject to Company’s policy
regarding the payment of reimbursable expenses, Company shall reimburse
Executive for such expenses from time to time, at Executive’s request.

8.2.4        Company shall
indemnify and hold Executive harmless for any legal fees and expenses incurred
by Executive in the performance of duties as a result of civil or criminal
actions against them in accordance with the indemnification provisions of the
Articles of Incorporation and Bylaws of Company.

8.2.5        During (i) the term
of this Agreement, (ii) the twelve month period following the termination of
this Agreement as a result of death, (iii) the twelve (12) month period
following the termination of this Agreement as a result of disability, (iv) a
one year period following termination of this Agreement by Executive for
material breach or good cause, and (v) a one year period following a termination
of this Agreement by Company without cause; Company shall pay to Executive, or
her estate if deceased, a sum as reimbursement for reasonable out-of-pocket
expenses incurred for third-party professional financial and tax advice
provided by a licensed professional of Executive’s choice.  Provided, however, that in (i) above, the sum
shall not exceed ten percent (10%) of Executive’s annual base salary for that
year; (ii) above, the sum shall not exceed ten percent (10%) of Executive’s
annual base salary for that year; (iii), (iv) and (v) above, the sum shall not
exceed ten percent (10%), each year, of Executive’s annual base salary at the
time of Executive’s disability or time of termination.

8.2.6        Executive shall be
provided with a personal automobile under arrangements equivalent to those
currently in effect with respect to other Company executives and of equivalent
size and features as presently driving.

8.3           Additional Compensation.

Executive shall be eligible to receive, in addition to her salary, any
contributions or sums specified for additional compensation through any
established plan or policy of Company which is available to senior executives
as compensation over and above established salaries, including but not limited
to stock options.

8.4           Tax Liability.

Any tax liability which these benefits create for Executive will be the
sole responsibility of Executive.

 4
 

9.             Protection of Company’s Interests
and non competition agreement.

9.0           During the term of
and for one (1) year after this Agreement terminates in any manner provided for
herein except for Sec. 11.4, Executive shall not directly or indirectly
solicit, contact or communicate with any person, company or business that was a
customer or prospective customer of the Company for the purpose of distributing,
marketing or selling any employee, product or service or the equivalent of any
product or service developed, produced, distributed, marketed, or sold by the
Company.  In addition Executive will not
solicit nor hire any employee of the company for a period of one (1)
years.   In consideration of the benefits
provided for herein, for a period of one (1) years after this Agreement
terminates in any manner provided for herein, Executive shall not engage in
competition with the Company, in any location and/or geographic area within a
one-hundred (100) mile radius of any location of the Company’s principal
lending institutions and branches, by working for any company or business as an
agent, consultant, partner, employee, officer, shareholder or independent contractor
for the purpose of providing services as a Chief Operating Officer, and or
Executive of Retail Sales , or for the purpose of soliciting, selling any
product or service or the equivalent of any product or service developed,
produced, marketed or sold by the Company and/or not own any interest in any
business which competes with, any business of Company; provided, however, that
the provisions of this Section 9 shall not prohibit her ownership of not more
than five percent (5%) of voting stock of any publicly held corporation.

9.1           Except for actions
taken in the course of Executive’s employment hereunder, at no time shall
Executive divulge, furnish or make accessible to any person any information of
a confidential or proprietary nature obtained by Executive while in the employ
of Company.  Upon termination of
Executive’s employment by Company, Executive shall return to Company all such
information which exists in writing or other physical form and all copies
thereof in Executive’s possession or under Executive’s control.

9.2           Company, its
successors and assigns, shall, in addition to Executive’s services, be entitled
to receive and own all of the results and proceeds of said services (including,
without limitation, literary material and other intellectual property) produced
or created during the term of Executive’s employment hereunder.  Executive will, at the request of Company,
execute such assignments, certificates or other instruments as Company may from
time to time deem necessary or desirable to evidence, establish, maintain,
protect, enforce or defend its right or title to any such material.

10.          Termination by Company

10.0         Company shall have
the right to terminate this Agreement under the following circumstances:

(i)            Upon the death of Executive;

(ii)           Upon the disability of
Executive;

(iii)          Upon material breach or good
cause;

(iv)          Upon written notice by Company
without cause; and

(v)                                 Upon
written notice by Company, during the period of automatic extension of
the term, of Company’s intention to have this Agreement expire in one year.

10.1         With respect to any
termination by Company for disability as defined above in 1.2.9, the specifics
of the basis of termination shall be communicated to Executive in writing at
least thirty (30) days before the date on which the termination is proposed to
take effect.  Executive shall have until
the effective date of the notice to cure or remedy such disability and/or
correct the misconception of the disability. 
If this Agreement is terminated for disability, any questions as to the
existence of the Total and Permanent disability of Executive as to which
Executive and Company cannot agree shall be determined in writing by a
qualified independent physician mutually acceptable to Executive and Company.  If Executive and Company cannot agree as to a
qualified independent physician, each shall appoint such a physician and those
two physicians shall select a third physician who shall make such determination
in writing.  If there is disagreement by
Executive and Company as to the disability of Executive, the effective date of
the termination will be extended a reasonable time to allow for a determination
by a physician, as described above.  Any
refusal by Executive to submit to a medical examination for the purpose of
certifying disability under this section shall be deemed to constitute
conclusive evidence of Executive’s disability. 
If Executive is disabled before her employment with Company 

 5
 

is otherwise terminated, Company shall continue to pay the current
annual base salary for one (1) year to the Executive, or if the Executive is
totally incapacitated, to her appointed guardian, at the time she is determined
to be disabled.  Whenever compensation is
payable to Executive hereunder, during a time when they are disabled, pursuant
to the terms of any insurance provided by Company, the compensation payable to
them hereunder shall be inclusive of any such disability insurance and shall
not be in addition thereto.  If this
agreement is terminated for disability Executive shall also be entitled to:

(i)            All Company insured
and self insured medical and dental plans in which Executive was participating
immediately prior to termination paid for by the company for a period of one
(1) year provided, further that, in no event shall Executive be required to pay
any premiums or other charges in an amount greater than that which Executive
would have paid in order to participate in Company’s plans and policies.

(ii)           The group
individual life insurance policies of Company then in effect for Executive,
provided, further that, in no event shall Executive be required to pay any
premiums or other charges in an amount greater than that which Executive would
have paid in order to participate in Company’s plans and policies.

(iii)          All such Bonuses
and Other Compensation as provided for in Section 8 above, it being understood,
however, that all such payments due, if made pursuant to this clause shall be
paid in cash within thirty (30) days of the date of termination.  All stock options granted by Company to
Executive under any provision of Section 8 or granted by Company to Executive
prior to the date hereof will accelerate and become immediately exercisable
regardless of whether the stock option is vested or not;

(iv)          Company
shall transfer to Executive title of the personal car, furnished Executive by
Company, in use at the time of the termination.

Entitlement of (i) and (ii) of this section shall be maintained in
effect for the continued benefit of Executive’s dependents for  one year after the date of termination or
until the commencement of each equivalent benefit from Executive’s new
employer, but not to be provided longer than 6 months after the date of
termination.

10.2         For purposes of this Agreement,
material breach and good cause shall mean willful misconduct in following the
legitimate directions of the CEO; commission of a significant act of
dishonesty, deceit or breach of fiduciary duty in the performance of Executive’s
duties; gross misappropriation of Company funds or property; habitual drunkenness;
excessive absenteeism not related to illness, sick leave or vacations.  Provided, however, Executive shall be
entitled to notice of any acts which the CEO considers to be misconduct or
excessive absenteeism as described in this paragraph.  Such notice shall include the specifics of
the basis for possible termination and shall be communicated to Executive in
writing at least thirty (30) days prior to any such intended termination.  Prior to any such termination, if requested
before the effective date of the intended termination, Executive shall be given
a reasonable period of time in which to show that Executive has corrected any
specified deficiencies.  Upon the cure or
remedy of such deficiencies, the Company shall rescind its notice of
termination.  If there is any question
about the effective correction of the deficiencies, a decision will be sought
from a lawyer agreed to by Company and Executive.  If the Company and Executive cannot agree on
a lawyer, each will pick a lawyer who will together pick a lawyer who will
render a decision. If this agreement is terminated for material breach or good
cause, Executive shall be entitled to:

(i)            All Company insured
and self insured medical and dental plans in which Executive was participating
immediately prior to termination; and

(ii)           The group
individual life insurance and disability insurance policies of Company then in
effect for Executive; provided, however, that if Company so elects, or such
continued participation is not possible under the general terms and conditions
of such plans or under such policies, Company shall, in lieu of the foregoing,
arrange to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive be required to pay any premiums or other charges in an
amount greater than that which Executive would have paid in order to
participate in Company’s plans and policies.

Entitlement of (i) and (ii) of this section shall be maintained in
effect for the continued benefit of Executive’s 

 6
 

dependents for a period of six (6) months after the date of termination
or until the commencement of each equivalent benefit from Executive’s new
employer, but not to be provided longer than six (6) months.

10.3         Company shall be
entitled to terminate this Agreement without cause upon ninety (90) days
written notice to Executive.  If Company
shall so terminate this Agreement, Executive shall be entitled to:

(i)            All Company insured
and self insured medical and dental plans in which Executive was participating
immediately prior to termination; and

(ii)           The group
individual life insurance and disability insurance policies of Company then in
effect for Executive; provided, however, that if Company so elects, or such
continued participation is not possible under the general terms and conditions
of such plans or under such policies, Company shall, in lieu of the foregoing,
arrange to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive be required to pay any premiums or other charges in an
amount greater than that which Executive would have paid in order to
participate in Company’s plans and policies.

Entitlement of (i) and (ii) of this section shall be maintained in
effect for the continued benefit of Executive’s dependents for  one year after the date of termination or
until the commencement of each equivalent benefit from Executive’s new
employer, but not to be provided longer than 6 months after the date of
termination.

(iii)          A cash payment
equal to the present value (based on a discount rate of 5%) of Executive’s
annual base salary hereunder for the remainder of the term of the Agreement, or
for one (1) year, which ever is longer, payable within thirty (30) days of the
date of such termination;

(iv)          All such Bonuses and
Other Compensation as provided for in Section 8 above, it being understood,
however, that all such payments due, if made pursuant to this clause shall be
paid in cash within thirty (30) days of the date of termination.  All stock options granted by Company to
Executive under any provision of Section 8 or granted by Company to Executive
prior to the date hereof will accelerate and become immediately exercisable
regardless of whether the stock option is vested or not;

(v)           A sum as
reimbursement for reasonable out-of-pocket expenses incurred for third-party
professional financial and tax advice provided by a licensed professional of
Executive’s choice for a period of six (6) months after the date of
termination, sum not to exceed, ten percent (10%) of Executive’s annual base
salary, as provided in Section 8;

(vi)          Company shall
transfer to Executive title of the personal car, furnished Executive by Company,
in use at the time of the termination.

10.4         Company shall be
entitled to terminate this Agreement during the period of automatic extension
of the term as set forth in Section 1.1, by giving written notice to Executive
of the Company’s intention to have the term of this Agreement expire one year
from the date of such notification.  If
Company shall so terminate this agreement, Executive shall be entitled only to
those benefits provided under existing law.

10.5         Company may purchase
life insurance to cover all or any part of its obligations contained in this
paragraph and Executive agrees to take a physical examination to facilitate the
placement of such insurance.  In the
event that Executive is uninsurable, Company may elect to disperse the funds
due in equal monthly payments over the remaining period of the year due, or if
less than six (6) months, over a period of twelve (12) consecutive months.

11.          Termination by Executive

11.0         Executive shall have
the right to terminate this Agreement under the following circumstances:

(i)            Upon material
breach or good cause;

(ii)           Upon written
notice to the CEO without cause; and

(iii)          Company is sold as set forth in
paragraph 11.4 below.

11.1         For purposes of this
Agreement, a material breach by Company of the terms of this Agreement shall 

 7
 

entitle Executive, upon written notice to the Company, to terminate her
services under this Agreement effective thirty (30) days from and after receipt
of such notice by Company.  Such notice
shall include a specific description of such breach and Company shall have
until the effective date of the notice to cure or remedy such breach.  Upon the cure or remedy of such breach,
Executive shall rescind Executive’s notice of termination.  For purposes of this Agreement, a termination
for good cause by Executive shall be based upon the following action by the
Company:  a failure, without good cause
to continue Executive as Executive  Vice
President Chief Operating Officer, Executive Vice President Retail Sales;
failure, without good cause to continue to vest Executive with the power and
authority of Executive Vice President Chief Operating Officer, Executive Vice
President Retail Sales; the loss, without good cause or Executive’s
consent,  of any significant duties or
responsibilities attending such offices. 
Provided, however, Executive’s title, duties and responsibilities shall
be deemed to be altered with good cause by the CEO if Company is (or
substantially all of its assets are) sold to or combined with another entity
and Executive shall thereafter continue to have the same significant duties and
responsibilities with respect to Company’s continuing business and with a like
Agreement for a term no less than that of this Agreement.  Upon the occurrence of any happening which
would authorize Executive to terminate Executive’s employment for good cause,
Executive shall notify CEO in writing within sixty (60) days following such
occurrence or Executive shall be deemed to have waived her right to terminate
this Agreement for such occurrence.  The
CEO shall have until the effective date of the notice to cure or remedy such
good cause occurrence.  Upon the cure or
remedy of such good cause occurrence, Executive shall rescind Executive’s
notice of termination.  Upon termination
of employment by Executive for material breach or good cause, Executive shall
be entitled to:

(i)            All company insured
and self insured medical and dental plans in which Executive was participating
immediately prior to termination; and

(ii)           The group
individual life insurance and disability insurance policies of Company then in
effect for Executive; provided, however, that if Company so elects, or such
continued participation is not possible under the general terms and conditions
of such plans or under such policies, Company shall, in lieu of the foregoing,
arrange to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive be required to pay any premiums or other charges in an
amount greater than that which Executive would have paid in order to
participate in Company’s plans and policies.

Entitlement of (i) and (ii) of this section shall be maintained in
effect for the continued benefit of Executive and Executive’s dependents for a
period of one year after the date of termination or until the commencement of
each equivalent benefit from Executive’s new employer, but not to be provided
longer than 6 months after the date of termination.

(iii)          A cash payment
equal to the present value (based on a discount rate 5%) of Executive’s base
salary hereunder for the remainder of the term of the Agreement, or for one (1)
year, which ever is longer, payable within thirty (30) days of the date of such
termination;

(iv)          All such Bonuses and
Other Compensation as provided for in Section 8 above, it being understood,
however, that all such payments due, if made pursuant to this clause shall be
paid in cash within thirty (30) days of the date of termination.  All stock options granted by Company to
Executive under any provision of Section 8 or granted by Company to Executive
prior to the date hereof will accelerate and become immediately exercisable
regardless of whether the stock option is vested or not;

(v)           A sum as
reimbursement for reasonable out-of-pocket expenses incurred for third-party
professional financial and tax advice provided by a licensed professional of
Executive’s choice for a period of six (6) months after date of termination,
sum not to exceed, ten  percent (10%) of
Executive’s annual base salary, as provided in Section 8;

(vi)          Company shall
transfer to Executive title of the personal car, furnished Executive by
Company, in use at the time of the termination.

11.2         Company may purchase
life insurance to cover all or any part of its obligations contained in this
paragraph and Executive agrees to take a physical examination to facilitate the
placement of such insurance.  In the
event that Executive is uninsurable, Company may elect to disperse the funds
due in equal monthly payments over the remaining period of the year due, or if
less than six (6) months, over a period of twelve (12) 

 8
 

consecutive months.

11.3         Executive shall be
entitled to terminate this Agreement without cause upon ninety (90) days
written notice to Company.  If Executive
shall so terminate this Agreement, Executive shall be entitled only to those
benefits provided under existing law.

11.4         If
Company is (or substantially all of its assets are) sold to or combined with
another entity, Executive shall have the exclusive right and option to approve
any resulting salary, benefits, title, duties and/or responsibilities of
Executive if the entity offers Executive continuing employment with the entity
or in the alternative Executive shall be entitled to terminate this Agreement
for good cause and shall have all of the entitlements set forth in Section 11.1
(i) through (ix) except the entitlement provided for in (iv) which shall be
void in these circumstances and the following shall be substituted therefore; “(iv)
cash payment equal to the present value (based upon a discount rate of 5%) of
Executives base after-tax salary hereunder for the remainder of the term of
this Agreement, or for one (1) year, which ever is longer, payable within
thirty days of the date of such termination.”

Executive shall
also be entitled to:

(i)            All Company insured
and self insured medical and dental plans in which Executive was participating
immediately prior to termination; and

(ii)           The group
individual life insurance and disability insurance policies of Company then in
effect for Executive; provided, however, that if Company so elects, or such
continued participation is not possible under the general terms and conditions
of such plans or under such policies, Company shall, in lieu of the foregoing,
arrange to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive be required to pay any premiums or other charges in an
amount greater than that which Executive would have paid in order to
participate in Company’s plans and policies.

Entitlement of (i) and (ii) of this section shall be maintained in
effect for the continued benefit of Executive’s dependents for a period of one
(1) year after the date of termination or until the commencement of each
equivalent benefit from Executive’s new employer, but not to be provided longer
than one (1) year after the date of termination.

(iii)          All such Bonuses
and Other Compensation as provided for in Section 8 above, it being understood,
however, that all such payments due, if made pursuant to this clause shall be
paid in cash within thirty (30) days of the date of termination.  All stock options granted by Company to Executive
under any provision of Section 8 or granted by Company to Executive prior to
the date hereof will accelerate and become immediately exercisable regardless
of whether the stock option is vested or not;

(iv)          A sum as
reimbursement for reasonable out-of-pocket expenses incurred for third-party
professional financial and tax advice provided by a licensed professional of
Executive’s choice for a period of one (1) year after the date of termination,
sum not to exceed, ten percent (10%) of Executive’s annual base salary, as
provided in Section 8;

(v)           Company shall
transfer to Executive title of the personal car, furnished Executive by
Company, in use at the time of the termination.

12.          Consequences of Breach

12.0         If this Agreement is
terminated pursuant to Section 11.1 hereof, or if Company shall terminate
Executive’s employment under this Agreement in any other way that is a breach
of this Agreement by Company, the following shall apply:

(i)            The parties believe
that because of the limitations of Section 11 the payments to Executive do not
constitute “Excess Parachute Payments” under Section 280G of the Internal
Revenue Code of 1954, as amended (the “Code”). 
Notwithstanding such belief, if any benefit under the preceding
paragraph is determined to be an “Excess Parachute Payment” Company shall pay
Executive an additional amount (“Tax Payment”) such that (x) the excess of all
Excess Parachute Payments (including payments under this sentence) over the sum
of excise tax thereon under Section 4999 of the 

 9
 

Code and income tax thereon under Subtitle A of the Code and under
applicable state law is equal to (y) the excess of all Excess Parachute
Payments (excluding payments under this sentence) over income tax thereon under
Subtitle A of the Code and under applicable state law.

13.          Tax “Gross-Up” Provision

13.0         If any payment due
Executive under this Agreement results in Executive’s liability for an excise
tax (“parachute tax”) under Section 49 of the Internal Revenue Code of 1986, as
amended (the “Code”), the Company will pay to Executive, after deducting any
Federal, state or local income tax imposed on the payment, an amount sufficient
to fully satisfy the “parachute tax” liability. 
Such payment shall be made to Executive no later than thirty (30) days
prior to the due date of the “parachute tax”.

14.          Mitigation and Offset

14.0         Executive shall not
be required to mitigate the amount of any payment provided for in this
Agreement by seeking employment or otherwise, nor to offset the amount of any
payment provided for in this Agreement by amounts earned as a result of
Executive’s employment or self-employment during the period she is entitled to
such payment.

15.          Remedies

15.0         Company recognizes
that because of Executive’s special talents, stature and opportunities in the
financial services industry, in the event of termination by Company hereunder
(except under Section 10.0), or in the event of termination by Executive under
Section 11, before the end of the agreed term, Company acknowledges and agrees
that the provisions of this Agreement regarding further payments of base
salary, bonuses and the exerciseability of stock options constitute fair and
reasonable provisions for the consequences of such termination, do not
constitute a penalty, and such payments and benefits shall not be limited or
reduced by amounts Executive might earn or be able to earn from any other
employment or ventures during the remainder of the agreed term of this
Agreement.

16.          Binding Agreement

16.0         This Agreement shall
be binding upon and inure to the benefit of Executive, her heirs, distributes
and assigns and company, its successors and assigns.  Executive may not, without the express
written permission of the Company, assign or pledge any rights or obligations
hereunder to any person, firm or corporation.

17.          Arbitration

17.0         Company and Executive
agree that any dispute or claim concerning this Agreement, or the terms and
conditions of employment under this Agreement, shall be settled by
arbitration.  The arbitration proceedings
will be conducted under the Commercial Arbitration Rules of the American
Arbitration Association in effect at the time a demand for arbitration under
the Rules is made.  The decision of the
arbitrators, including determination of the amount of any damages suffered,
will be exclusive, final and binding on Company and Executive, her heirs,
executors, administrators, successors and assigns.  Each party will bear that party’s own
expenses in the arbitration proceedings for arbitrators’ fees and attorney
fees, for that party’s witnesses, and other expenses of presenting the
case.  Other arbitration costs, including
administrative fees and fees for records or transcripts, will be borne equally
by Company and Executive.

18.          Amendment; Waiver

18.0         This instrument
contains the entire agreement of the parties with respect to the employment of
Executive by Company and supersedes any prior Agreement between Company and
Executive (it being understood, however, that this agreement shall not affect
any stock options granted to Executive prior to the date hereof).  No amendment or modification of this
Agreement shall be valid unless evidenced by a written instrument executed by
the parties hereto.  No waiver by either
party of any breach by the other party of any 

 10
 

provision or condition of this Agreement shall be deemed a waiver of
any similar or dissimilar provision or condition at the same or any prior or
subsequent time.

19.          Governing Law

19.0         This Agreement shall
be governed by and construed in accordance with the laws of the State of
Kansas.

20.          Notices

20.0         All notices which a
party is required or may desire to give to the other party under or in
connection with this Agreement shall be given in writing by addressing the same
to the other party as follows:

If to Executive,
to:

Sandra J. Moll

28080 West 303rd

Paola, Kansas 66071

If to Company, to:

Team Financial, Inc.

CEO

8 West Peoria,, P.O. Box 369

Paola, Kansas 66071

or at such other place as may be designated in writing by like
notice.  Any notice shall be deemed to
have been given within forty-eight (48) hours after being addressed as required
herein and deposited, first-class postage prepaid, in the United States mail.

IN
WITNESS THEREOF, the parties have executed this agreement
this 2nd day of March, 2007 effective as of the day and year first above
written.

	
  

  	
  TEAM FINANCIAL, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert J. Weatherbie

  	
   

  
	
   

  	
  Robert J. Weatherbie

  	
   

  
	
   

  	
  CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SANDRA J. MOLL

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carolyn Sue Jacobs

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Executive

  	
   

  

 

 11Exhibit 10.21

FORM OF LOCKUP AGREEMENT

LOCKUP AGREEMENT,
dated as of          , 2007, by and among
InSight Health Services Holdings Corp., a Delaware corporation (the “Company”),
and the undersigned beneficial owners (or investment managers or advisors for
the beneficial owners) of the Notes (as defined below) (for the avoidance of
doubt, this does not include any Notes beneficially owned by non-affiliated
customers of the undersigned) identified on Schedule A to this Agreement
(defined hereinafter) on the date of this Agreement and each other beneficial
owner (or investment managers or advisors for the beneficial owners) of Notes
that executes a counterpart signature page to this Agreement after the date of
this Agreement as provided in Section 23 (collectively, the “Concurring
Noteholders,” and each, individually, a “Concurring Noteholder”).

For purposes
hereof, all references in this Agreement to Concurring Noteholders or parties
that are “signatories to this Agreement” shall mean, as of any date of determination,
those Noteholders or parties, as the case may be, who executed and
delivered this Agreement as an original signatory on or before the date of this
Agreement, together with those additional Noteholders or parties, as the case
may be, who after the date of this Agreement but, on or before such date
of determination, become party to this Agreement by executing and delivering
counterpart signature pages as provided in Section 23. After the date of
this Agreement, when Noteholders become signatories to this Agreement, Schedule
A shall be updated to include the Notes held by such Noteholder.

WHEREAS, the
Company and the Concurring Noteholders have engaged in good faith negotiations
with the objective of restructuring the debt and equity capital structures of
the Company (the “Restructuring”), substantially as reflected in the Term Sheet
(as defined below) which sets forth the terms and conditions of (i) the
Exchange Offer, (ii) the Consent Solicitation and (iii) the
Prepackaged Plan (each as defined below); and

WHEREAS, the
Company and the Concurring Noteholders desire that the Company conduct the
Exchange Offer and the Consent Solicitation as soon as practicable on the terms
described in the Term Sheet to accomplish the Restructuring, or, if necessary
under the terms of the Term Sheet, that the Company commence a case under
Chapter 11 of the Bankruptcy Code to accomplish the Restructuring through the
confirmation of the Prepackaged Plan (the “Prepackaged Proceeding”).

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each of the parties signatory to
this Agreement hereby agrees as follows:

1.                                       Definitions.  The following terms shall have
the following meanings:

“Agreement” means
this Lockup Agreement, including the Schedules, Annexes and Exhibits hereto
(including any agreements incorporated herein or therein), all of which are
incorporated by reference herein.

“Board” means the Board
of Directors of the Company.

 1
 

 

“Common Stock”
means the common stock, par value $0.001 per share, of the Company.

“Consent
Solicitation” means the solicitation by the Company of the consent of the
Noteholders to amend certain of the terms of the Indenture to remove
substantially all material affirmative and negative covenants set forth therein
other than the obligation to pay principal and interest on the Notes.

“Exchange Offer”
means the offer by the Company to exchange 44,247,677 shares of Common Stock in
the event the Restructuring is consummated without commencing the Prepackaged
Proceeding and 49,219,326 shares of Common Stock in the event the Restructuring
is consummated through the Prepackaged Proceeding, which may be adjusted
pursuant to a reverse stock split, for the outstanding Notes, such
consideration to be ratably adjusted in the event the Restructuring is
consummated without commencing the Prepackaged Proceeding and the offer is not
fully subscribed.

“HSR Act” means
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the
rules and regulations of the Federal Trade Commission promulgated thereunder.

“Indenture” means
the Indenture (as amended, modified or supplemented from time to time), dated as
of October 30, 2001, among InSight, as issuer, the Company and the subsidiaries
listed in the preamble thereto, as guarantors, and U.S. Bank Trust National
Association, as trustee or any successor trustee.

“Indenture
Amendment” means an amendment to the Indenture, which, among other things,
deletes substantially all material affirmative and negative covenants other
than the obligation to pay principal and interest on the Notes contained in the
Indenture.

“InSight” means
InSight Health Services Corp., a Delaware corporation and a wholly-owned
subsidiary of the Company.

“Material Adverse
Change” means any change, event or effect that is materially adverse to the
operations or financial condition of the Company and its subsidiaries (taken as
a whole); provided that the filing of the Prepackaged Proceeding shall not
constitute a Material Adverse Change; and provided further that a change shall
not be considered to be a Material Adverse Change if (x) its effect is not
likely to last beyond the term of this Agreement; or (y) it arises from
actions required to be taken by the Company pursuant to this Agreement.

“Minimum Tender
Condition” means the condition to the consummation of the Exchange Offer that
there be validly tendered and not withdrawn not less than 97% in aggregate
principal amount of the Notes; provided, however, that the Minimum Tender
Condition may be amended with the mutual consent of the Company,               and                .

“Noteholder” means
any beneficial owner of Notes.

“Notes” means the 97⁄8%
Senior Subordinated Notes due 2011 in the aggregate principal amount at
maturity of $194.5 million, issued by InSight pursuant to the Indenture.

 2
 

 

“Person” means any
individual, partnership, corporation, limited liability company, association,
trust, joint venture, unincorporated organization, governmental unit or other
entity.

“Original
Concurring Noteholders” means those Noteholders who executed and delivered an
Original Lockup Agreement before the date of this Agreement.

“Original Lockup
Agreement” means a lockup agreement with the Company, substantially in the form
included as Exhibit A to the Company’s prospectus dated March 21, 2007 relating
to the Restructuring.

“Prepackaged Plan”
means a prepackaged plan of bankruptcy under Chapter 11 of the United States
Bankruptcy Code prepared by the Company to be implemented in the event that
insufficient tenders of Notes and consents have been received from the
Noteholders to satisfy or cause the Company to waive the Minimum Tender
Condition, but sufficient votes of an accepting class under section 1126 of the
United States Bankruptcy Code have been received.

“Required
Noteholders” means Concurring Noteholders and Original Concurring Noteholders
holding a majority in aggregate principal amount of and accrued interest on the
Notes held by all Concurring Noteholders and Original Concurring Noteholders.

“Securities Act”
means the Securities Act of 1933, as amended.

“Term Sheet” means
that certain Term Sheet attached hereto as Annex A which sets forth the
material terms and conditions of the Restructuring.

“Transfer” means
to directly or indirectly (i) sell, pledge, assign, encumber, grant an
option with respect to, transfer or dispose of any participation or interest
(voting or otherwise) in or (ii) enter into an agreement, commitment or
other arrangement to sell, pledge, assign, encumber, grant an option with
respect to, transfer or dispose of any participation or interest (voting or
otherwise) in, or the act thereof.

2.                                       Agreement to Complete the Restructuring.  Subject
to the terms and conditions of this Agreement and so long as this Agreement
remains in effect as between the Company and a Concurring Noteholder, the
Company and such Concurring Noteholder agree to use commercially reasonable
best efforts to complete the Restructuring through the Exchange Offer and the
Consent Solicitation, as each is described in the Term Sheet; or,
alternatively, if the Minimum Tender Condition is not satisfied or waived or
the Company is otherwise not able to consummate the Exchange Offer but the
required consents of holders of the Notes are received to confirm the
Prepackaged Plan, then through the Prepackaged Plan in accordance with the
terms of the Term Sheet.  The obligations
of the parties hereunder are several and not joint and no party hereto shall be
responsible for the failure of any other party hereto to perform its
obligations hereunder.

3.                                       The Company’s Obligations to Support the
Restructuring.  (a) The Company agrees to use its
commercially reasonable best efforts to modify the Exchange Offer and the
Consent Solicitation as promptly as practicable, to do all things reasonably
necessary and appropriate in furtherance thereof, including filing any related
documents that it is required to

 3
 

file with the Securities and
Exchange Commission (the “Commission”), and to use its commercially reasonable
best efforts to complete the same within 120 days of the date of modification
of the Exchange Offer.

(b)                                 If
all of the conditions to the Exchange Offer are not satisfied or waived by May
18, 2007, but the required consents of holders of the Notes are received to
confirm the Prepackaged Plan, then on such date (or such earlier or later date
as the Company may determine), the Company shall file the Prepackaged
Proceeding and seek confirmation of the Prepackaged Plan.

(c)                                  Subject
to the terms and conditions of this Agreement, the Company shall use its best
efforts to take all necessary action to effect a restructuring of its board of
directors concurrently and in connection with and conditioned upon the
consummation of the Restructuring on the terms set forth in the Term Sheet.

(d)                                 The
Company further agrees that it will not object to, or otherwise commence any
proceeding to oppose the Restructuring and shall not take any action that is
inconsistent with, or that would unreasonably delay the consummation of, the
Restructuring.

(e)                                  Nothing
in this Agreement shall be deemed to prevent the Company from taking, or
failing to take, any action that it is obligated to take (or fail to take) in
the performance of any fiduciary or similar duty which the Company owes to any
other Person; it being understood and agreed that if any such action (or
failure to act) results in (i) an alteration of the terms of the
Restructuring not permitted by Section 6 or (ii) the Company giving
written notice of its intent to terminate this Agreement pursuant to
Section 7(a)(v), this Agreement and all of the obligations and
undertakings of the parties set forth in this Agreement, other than the
obligations of the Company contained in Section 9, shall terminate and
expire.

4.                                       Concurring Noteholders’ Obligations to Support
the Restructuring.  Subject to the terms and conditions of this
Agreement and so long as this Agreement remains in effect as between the
Company and a Concurring Noteholder:

(a)                                  Concurring
Noteholder agrees, in connection with and conditioned upon consummation of the
Restructuring upon the terms set forth in the Term Sheet, to:  (i) tender its Notes pursuant to and in
accordance with the Exchange Offer and the other terms and conditions of the
Term Sheet within ten (10) days following the date hereof; (ii) grant its
consent pursuant to the Consent Solicitation and agree to the Indenture
Amendment; (iii) withdraw its ballot rejecting the Prepackaged Plan and,
if necessary, file a pleading to evidence such withdrawal (in any event,
Concurring Noteholder’s signature to this agreement shall be deemed to be
conclusive evidence of Concurring Noteholder’s withdrawal of such ballot);
(iv) vote to reject any plan of reorganization for the Company that does
not contain the terms of the Restructuring substantially as set forth in the
Term Sheet; and (v) subject to the terms of the Term Sheet, not to
withdraw or revoke any of the foregoing unless and until this Agreement is
terminated in accordance with its terms. 
Each Concurring Noteholder acknowledges that by tendering

 4
 

its Notes in the Exchange Offer, it will be
deemed to have (A) delivered the consents required in the Consent Solicitation
for the Indenture Amendment and (B) accepted the Prepackaged Plan.

(b)                                 Each
Concurring Noteholder agrees, so long as this Agreement remains in effect, not
to Transfer any of the Notes held by it, in whole or in part, unless the
Transferee agrees in writing to be bound by the terms of this Agreement.  In the event that any Concurring Noteholder
Transfers any of the Notes, as a condition precedent to such Transfer, such
Concurring Noteholder agrees to cause the Transferee to execute and deliver a joinder
agreement in customary form confirming the agreement of such Transferee to be
bound by the terms of this Agreement for so long as this Agreement shall remain
in effect.  In the event that the Company’s
consent is required for any Transfer of the Notes, the Company hereby agrees to
grant such consent promptly in accordance with the requirements of this
Agreement.  Any Transfer of the Notes in
violation of the foregoing shall be deemed ineffective to Transfer any right to
accept or reject the Exchange Offer, to consent to or reject the Indenture
Amendment, or to accept or reject the Prepackaged Plan, which right shall
remain with and be exercised only by the purported transferor.

(c)                                  Each
Concurring Noteholder agrees that it will (i) not vote for, consent to,
provide any support for, participate in the formulation of, or solicit or
encourage others to formulate any other tender offer, settlement offer, or
exchange offer for the Notes other than the Exchange Offer; and
(ii) permit public disclosure, including in a press release, of the contents
of this Agreement, including, but not limited to, the commitments contained in
this Section 4 and the Term Sheet, but not including information with
respect to such Concurring Noteholder’s specific ownership of Notes.

(d)                                 Each
Concurring Noteholder further agrees that it will not object to, or otherwise
commence any proceeding to oppose, the Restructuring and shall not take any
action that is materially inconsistent with, or that would unreasonably delay
the consummation of, the Restructuring in accordance with the terms of the Term
Sheet.  Accordingly, so long as this
Agreement is in effect, each Concurring Noteholder agrees that it shall not
(i) object to confirmation of the Prepackaged Plan or otherwise commence
any action or proceeding to alter, oppose or add any other provision to the
Prepackaged Plan or any other documents or agreements consistent with the
Prepackaged Plan; (ii) object to the approval of any disclosure statement
that describes the Prepackaged Plan; (iii) vote for, consent to, support, intentionally
induce or participate directly or indirectly in the formation of any other plan
of reorganization or liquidation proposed or filed, or to be proposed or filed,
in any Chapter 11 case for the Company; (iv) commence or support any
action or proceeding to shorten or terminate the period during which only the
Company may propose and/or seek confirmation of a plan of reorganization
for the Company; (v) directly or indirectly seek, solicit, support or
encourage any other plan, sale, proposal or offer of winding up, liquidation,
reorganization, merger, consolidation, dissolution or restructuring of the
Company; or (vi) commence or support any action filed by the Company or
any other party in interest to appoint a trustee, conservator, receiver or examiner
for the Company, or to dismiss any Chapter 11 case, or to convert such Chapter
11 case to one under Chapter 7.

 5
 

 

(e)                                  Nothing
in this Agreement shall be deemed to prevent any Concurring Noteholder from
taking, or failing to take, any action that it is obligated to take (or fail to
take) in the performance of any fiduciary or similar duty which the Concurring
Noteholder owes to any other Person, including any duties that may arise
as a result of any Concurring Noteholder’s appointment to any committee in the
Prepackaged Proceeding or any other bankruptcy or insolvency proceeding.

(f)                                    Each
Concurring Noteholder further agrees that any Notes acquired by such Concurring
Noteholder following the date of this Agreement shall be subject to the terms
and conditions of this Agreement and shall be subject to the same treatment in
the Restructuring as the Notes held by such Concurring Noteholder as of the
date hereof.  For the avoidance of doubt,
this shall not include any acquired Notes beneficially owned by non-affiliated
customers of the undersigned Concurring Noteholder.

(g)                                 Subject
to Section 2 of this Agreement, each Concurring Noteholder agrees that so
long as it is the legal owner or beneficial owner of all or any portion of
either a referenced “claim” or referenced “interest” within the meaning of
11 U.S.C. §§ 101, et seq. (each a “Claim”), it will:  (i) take all reasonable steps to support
the Prepackaged Plan, use its commercially reasonable best efforts to defend
the adequacy of pre-petition disclosure and solicitation procedures in
connection with the Prepackaged Plan and the Exchange Offer and, to the extent
necessary, support the adequacy of any post-petition disclosure statement that
may be required by the bankruptcy court and circulated in connection herewith
or therewith; (ii) from and after the date hereof, not agree to, consent
to, provide any support to, participate in the formulation of, or vote for any
plan of reorganization or liquidation of the Company, other than the
Prepackaged Plan; and (iii) agree to permit disclosure in the Prepackaged
Plan or any document ancillary thereto (hereinafter a “Reorganization Document”)
or any necessary filings by the Company with the Commission of the contents of
this Agreement (excluding information with respect to any Concurring Noteholder’s
specific ownership of Notes, except to the extent such information is required
to be included in any filings with the Commission).

(h)                                 Each
Concurring Noteholder agrees that so long as it is a holder of all or any
portion of a Claim, it shall not object to, or otherwise commence any
proceeding to oppose or alter, the Prepackaged Plan or any other Reorganization
Document and shall not take any action which is inconsistent with, or that
would unreasonably delay or impede approval or confirmation of the Prepackaged
Plan or any of the Reorganization Documents. 
Without limiting the generality of the foregoing, no Concurring
Noteholder may directly or indirectly seek, solicit, support or encourage
any other plan, sale, proposal or offer of dissolution, winding up,
liquidation, reorganization, merger, consolidation, liquidation or
restructuring of the Company that could reasonably be expected to prevent,
delay or impede the confirmation of the Prepackaged Plan or approval of any Reorganization
Document.

(i)                                     Each
of the Concurring Noteholders agrees to waive its respective rights and
remedies under the Indenture and related documents or applicable law in respect
of or arising out of any “Default” (as defined in such documents) or “Event of
Default” (as

 6
 

defined in such documents) arising under the
Indenture, until this Agreement is terminated as provided in
Section 7.  If this Agreement is
terminated as provided in Section 7, the agreement of the Concurring
Noteholders to waive shall automatically and without further action terminate
and be of no force and effect, it being expressly agreed that the effect of
such termination shall be to permit each of them to exercise any rights and
remedies immediately; provided that nothing herein shall be construed as a
waiver by the Company of any right it may have as a “debtor” under the
Prepackaged Proceeding or other bankruptcy proceeding or by any Noteholder to
seek adequate protection retroactive to the date of filing of the Prepackaged
Proceeding or other bankruptcy proceeding.

5.                                       Extension of Confidentiality Agreement. 
Concurring Noteholder agrees that it will concurrently with the
execution hereof enter into an amendment to that certain Confidentiality
Agreement dated April 13, 2007 by and between Concurring Noteholder and InSight
Health Services Corp., as amended, amending the date in Section 3 thereof from
May 4, 2007 to May 18, 2007.

6.                                       Amendments to the Restructuring.  The
Company shall not alter the terms of the Restructuring in a manner that
adversely affects any Concurring Noteholder without the prior written consent
of such adversely affected Concurring Noteholder, which consent shall not be
unreasonably withheld.  Notwithstanding
the foregoing, the Company may extend the expiration date of the Exchange
Offer to any date not later than September 30, 2007 if at the time of any such
extension, the conditions to closing set forth in the Exchange Offer shall not
have been satisfied or waived as provided in this Agreement, provided, however,
that no such extension of the Expiration Date shall impair or limit the
otherwise applicable rights of a Concurring Noteholder to withdraw from and
terminate this Agreement pursuant to the terms of Section 7 (b) of this
Agreement.

7.                                       Termination of Agreement. 
Notwithstanding anything to the contrary set forth in this Agreement:

(a)                                  Unless
the Restructuring has been consummated as provided in this Agreement, this
Agreement and all of the obligations and undertakings of the parties set forth
in this Agreement shall terminate and expire upon the earliest to occur of:

(i)                                     May
31, 2007, (provided that if a Prepackaged Proceeding is filed as set forth in
Section 3(b), such date shall be September 30, 2007), unless extended
pursuant to Section 6;

(ii)                                  receipt
of written notice from the Required Noteholders of their intent to terminate
this Agreement or the Original Lockup Agreement, as the case may be, upon the
occurrence of a Material Adverse Change;

(iii)                               a
material alteration by the Company of the terms of the Restructuring not
permitted under Section 6;

(iv)                              receipt
by the Company of written notice from the Required Noteholders of their intent
to terminate this Agreement or the Original Lockup Agreement, as the case may
be, upon the occurrence of a material breach by the

 7
 

Company of its obligations, representations
or warranties under this Agreement or the Original Lockup Agreement, as the
case may be, that is incurable or that is curable and is not cured within 30
days after notice of such breach;

(v)                                 receipt
by each Concurring Noteholder of written notice from the Company of its intent
to terminate this Agreement upon a determination by the Board that such
termination is in the best interests of the Company;

(vi)                              the
sixtieth day following the filing of any involuntary bankruptcy or other
insolvency proceeding involving the Company, other than the Prepackaged
Proceeding contemplated by this Agreement, if such proceeding has not been
dismissed by such day;

(vii)                           the
Prepackaged Proceeding being dismissed or converted to chapter 7; and

(viii)                        receipt by
the Company of written notice from the Required Noteholders to terminate this
Agreement or the Original Lockup Agreement, as the case may be, due to the
Company’s failure to pay the fees and expenses incurred by such parties in
connection with the Restructuring;

(b)                                 Any
individual Concurring Noteholder shall have the right to withdraw from and
terminate this Agreement as between said Concurring Noteholder and the Company
by giving written notice to the Company of its election to withdraw and
terminate at any time following the failure of the Company to commence the
Prepackaged Proceeding on or before May 31, 2007 in the event the Minimum
Tender Condition is not satisfied as of said date;

provided however that the
obligations of the Company contained in Section 9 shall survive any termination
pursuant to this Section 7.

8.                                       Representations and Warranties. 
(a) Each of the signatories to this Agreement represents and
warrants to the other signatories to this Agreement that:

(i)                                     if
an entity, it is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization and has all requisite
corporate, partnership or other power and authority to enter into this
Agreement and to carry out the transactions contemplated by, and perform its
respective obligations under, this Agreement;

(ii)                                  the
execution and delivery of this Agreement and the performance of its obligations
hereunder have been duly authorized by all necessary corporate, partnership or
other action on its part;

(iii)                               the
execution, delivery and performance by it of this Agreement do not and shall
not (A) violate any provision of law, rule or regulation applicable to it
(and, in the case of the Company, any of its affiliates) or its certificate of
incorporation or bylaws or other organizational documents or those of any of
its

 8
 

subsidiaries
or (B) conflict with, result in the breach of or constitute (with due
notice or lapse of time or both) a default under any material contractual obligations
to which it (and, in the case of the Company, any of its affiliates) is a party
or under its certificate of incorporation, bylaws or other governing
instruments;

(iv)                              the
execution, delivery and performance by it of this Agreement do not and shall
not require any registration or filing with, the consent or approval of, notice
to, or any other action with respect to, any Federal, state or other
governmental authority or regulatory body, except for (A) the registration
under the Securities Act of the shares of the Common Stock to be issued in the
Exchange Offer and such consents, approvals, authorizations, registrations or
qualifications as may be required under the state securities or Blue Sky
laws in connection with the issuance of those shares, (B) such other
filings as may be necessary or required by the Commission, and
(C) any filings required under the HSR Act;

(v)                                 in
the case of each of the Concurring Noteholders, assuming the execution and
delivery of this Agreement by the Company, and in the case of the Company,
assuming the due execution and delivery of this Agreement by each of the
Concurring Noteholders, this Agreement is the legally valid and binding
obligation of it, enforceable against it in accordance with its terms, except
as may be limited by bankruptcy, insolvency, or similar laws, or by equitable
principles relating to or limiting creditors’ rights generally; and

(vi)                              it
has been represented by counsel in connection with this Agreement and the
transactions contemplated by this Agreement.

(b)                                 Each
of the Concurring Noteholders further represents and warrants to the other
signatories to this Agreement that:

(i)                                     as
of the date of this Agreement, such Concurring Noteholder is the beneficial
owner of, or the investment adviser or manager for the beneficial owners of,
the principal amount at maturity of the Notes, set forth opposite such
Concurring Noteholder’s name on Schedule B hereto, with the power and authority
to vote and dispose of such Notes;

(ii)                                  such
Concurring Noteholder has reviewed, or has had the opportunity to review, with
the assistance of professional and legal advisors of its choosing, sufficient
information necessary for such Concurring Noteholder to decide to tender its
Notes pursuant to the Exchange Offer and to accept the proposed terms of the
Prepackaged Plan as set forth in the Term Sheet; and

(iii)                               as
of the date of this Agreement, such Concurring Noteholder is not aware of any
event that, due to any fiduciary or similar duty to any other Person, would
prevent it from taking any action required of it under this Agreement.

 9
 

 

9.                                       [Intentionally Omitted.]

10.                                 Preparation of Restructuring Documents. 
Notwithstanding anything to the contrary contained in this Agreement,
the obligations of the signatories to this Agreement shall be subject to the
preparation of definitive documents (in form and substance reasonably
satisfactory to each of the parties hereto and their respective counsel)
relating to the transactions contemplated by this Agreement, including, without
limitation, the documents relating to the Exchange Offer, the Prepackaged Plan,
the Consent Solicitation and each Reorganization Document, which documents
shall be in all respects materially consistent with this Agreement (including
the Term Sheet) and shall include appropriate releases.

11.                                 Good Faith.  Each of the signatories to
this Agreement agrees to cooperate in good faith with each other to facilitate
the performance by the parties of their respective obligations hereunder and
the purposes of this Agreement.  Each of
the signatories to this Agreement further agrees to review and comment upon the
definitive documents in good faith and, in any event, in all respects
consistent with the Term Sheet.

12.                                 Amendments and Modifications.  Except
as otherwise expressly provided in this Agreement, this Agreement shall not be
amended, modified or supplemented, except in writing signed by the Company and
the Required Noteholders.

13.                                 No Waiver.  Each of the signatories to
this Agreement expressly acknowledges and agrees that, except as expressly
provided in this Agreement, nothing in this Agreement is intended to, or does,
in any manner waive, limit, impair or restrict the ability of any party to this
Agreement to protect and preserve all of its rights, remedies and interests,
including, without limitation, with respect to its claims against and interests
in the Company.

14.                                 Further Assurances.  Each
of the signatories to this Agreement hereby further covenants and agrees to
execute and deliver all further documents and agreements and take all further
action that may be reasonably necessary or desirable in order to enforce
and effectively implement the terms and conditions of this Agreement.

15.                                 Complete Agreement.  This
Agreement, including the Schedules and Annexes hereto, constitutes the complete
agreement between the signatories to this Agreement with respect to the subject
matter hereof and supersedes all prior and contemporaneous negotiations,
agreements and understandings with respect to the subject matter hereof.  The provisions of this Agreement shall be
interpreted in a reasonable manner to effect the intent of the signatories to
this Agreement.

16.                                 Notices.  All notices, requests,
demands, claims and other communications hereunder shall be in writing and
shall be (a) transmitted by hand delivery, or (b) mailed by first
class, registered or certified mail, postage prepaid, or (c) transmitted
by overnight courier, or (d) transmitted by telecopy, and in each case, if
to the Company, at the address set forth below:

 10
 

 

InSight Health Services Holdings Corp.

26250 Enterprise Court

Suite 100

Lake Forest, CA  92630

Attention: General Counsel

with a copy to:

Kaye Scholer LLP

425 Park Avenue 

New York, New York  10022

Telephone:  (212) 836-8019

Fax:  (212) 836-6419

Attention:  Stephen C. Koval

if to a Noteholder, to
the address set forth on the signature pages to this Agreement, with a copy to:

 

 

 

Telephone:                                  

Fax:                                              

Attention:                                      

Notices mailed or
transmitted in accordance with the foregoing shall be deemed to have been given
upon receipt.

17.                                 Governing Law.  This Agreement shall be
governed in all respects by the laws of the State of New York, without
reference to its conflicts of law principles, except to the extent such law is
preempted by the Federal Bankruptcy Code.

18.                                 Jurisdiction.  By its execution and delivery
of this Agreement, each of the signatories to this Agreement irrevocably and
unconditionally agrees that any legal action, suit or proceeding against it
with respect to any matter under or arising out of or in connection with this
Agreement or for recognition or enforcement of any judgment rendered in any
such action, suit or proceeding, shall be brought (a) in the United States
Bankruptcy Court for the district in which the Company has commenced a case
under Chapter 11 of the Bankruptcy Code or (b) in a federal or state court
of competent jurisdiction in the State of New York, located in the Borough of Manhattan
if the Company has not commenced a case under Chapter 11 of the Bankruptcy
Code.  By its execution and delivery of
this Agreement, each of the signatories to this Agreement irrevocably accepts
and submits itself to the jurisdiction of the United States Bankruptcy Court
for the district in which the Company has commenced a case under Chapter 11 of
the Bankruptcy Code, or a court of competent jurisdiction in the State of New
York, as applicable under the preceding sentence, with respect to any such
action, suit or proceeding.

 11
 

 

19.                                 Consent to Service of Process.  Each
of the signatories to this Agreement irrevocably consents to service of process
by mail at the address listed with the signature of each such party on the
signature pages to this Agreement.  Each
of the signatories to this Agreement agrees that its submission to jurisdiction
and consent to service of process by mail is made for the express benefit of
each of the other signatories to this Agreement.

20.                                 Specific Performance.  It is
understood and agreed by each of the signatories to this Agreement that money
damages would not be a sufficient remedy for any breach of this Agreement by
any party and each non-breaching party shall be entitled to specific
performance, injunctive, rescissionary or other equitable relief as remedy for
any such breach.

21.                                 Headings.  The headings of the sections,
paragraphs and subsections of this Agreement are inserted for convenience only
and shall not affect the interpretation hereof.

22.                                 Successors and Assigns.  This Agreement
is intended to bind and inure to the benefit of the signatories to this
Agreement and their respective successors, permitted assigns, heirs, executors,
administrators and representatives.  The
agreements, representations and obligations of the undersigned parties under
this Agreement are, in all respects, several and not joint.

23.                                 Counterparts.  This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original
and all of which shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page by facsimile shall be effective as delivery of a manually
executed counterpart.  Any Noteholder
may become party to this Agreement on or after the date of this Agreement
by executing a signature page to this Agreement.

24.                                 No Third-Party Beneficiaries.  Unless
expressly stated in this Agreement, this Agreement shall be solely for the
benefit of the signatories to this Agreement, and no other Person or entity
shall be a third-party beneficiary hereof.

25.                                 No Solicitations.  This
Agreement is not intended to be, and each signatory to this Agreement
acknowledges that it is not, a solicitation of the acceptance or rejection of
any prepackaged plan of reorganization for the Company pursuant to
Section 1125 of the Bankruptcy Code.

26.                                 Consideration.  It is hereby acknowledged by
each of the signatories to this Agreement that no consideration (other than the
obligations of the other parties under this Agreement) shall be due or paid to
the parties for their agreement to support the Prepackaged Plan in accordance
with the terms and conditions of this Agreement.

[SIGNATURES BEGIN
ON NEXT PAGE]

 12

IN WITNESS
WHEREOF, each of the parties has caused this Agreement to be executed and
delivered by its duly authorized officers as of the date first written above.

	
  

  	
   

  	
  INSIGHT HEALTH SERVICES HOLDINGS

  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  

 

 

[SIGNATURE PAGE TO LOCKUP AGREEMENT DATED AS OF [          ]

 

SCHEDULE A

NOTEHOLDERS AND AGGREGATE PRINCIPAL AMOUNT OF NOTES
HELD

[List Noteholders]

Aggregate Principal
Amount of Senior Subordinated Notes held by Noteholders:  [              ].

 

SCHEDULE B

 

SUMMARY
OF TERMS AND CONDITIONS

This term sheet
(the “Term Sheet”) contains the material terms of the proposed financial
restructuring of InSight Health Services Corp. and its affiliates (together,
the “Company”).  This Term Sheet does not
constitute an offer to sell or a solicitation of an offer to buy any
securities.  This Term Sheet contemplates
that the Company will negotiate with a committee of Noteholders (which, for
purposes of this term sheet, shall include               and their advisors (the “Committee”).

	
  The Existing Notes:

  	
  $194.5 million 9.875% Senior Subordinated Notes due
  2011 (the “Notes”).

  
	
  The Transaction:

  	
  On the effective date
  (the “Effective Date”), the holders of the outstanding principal amount of
  the Notes (the “Noteholders”) will receive newly-issued shares of common
  stock (“Common Stock”) of InSight Health Services Holdings Corp. (“Holdings”)
  representing either 89% (if the Transaction is implemented pursuant to an
  out-of-court exchange) or 90% (if the Transaction is implemented pursuant to
  a pre-packaged chapter 11 bankruptcy filing) of all issued and outstanding
  shares of Common Stock as of the Effective Date in exchange for their Notes
  (assuming 100% participation) in a registered exchange offer subject to dilution
  resulting from the issuance of equity under the Management Incentive
  Plan.  To the extent that less than
  100% of the Notes are tendered, the aggregate amount of shares allocable to
  the Noteholders shall be reduced by the percentage of the Notes that are not
  tendered.  The Company’s Board and
  Existing Equity Holders (as defined below) will adopt the necessary
  resolutions and amend Holdings’ Certificate of Incorporation to increase the
  authorized share capital of Holdings and to issue and allot the Common Stock
  to the Noteholders.

  The Company will take
  necessary actions to comply with applicable public company requirements,
  including eligibility for quotation on the OTC Bulletin Board.

  On the Effective Date,
  the holders of existing shares of Common Stock of Holdings (the “Existing
  Equity Holders”) will retain equity representing (i) 11% of all issued and
  outstanding shares of Common Stock as of the Effective Date if the
  Transaction is implemented pursuant to an out-of-court exchange; or (ii) 10%
  of all issued and outstanding shares of Common Stock as of the Effective Date
  if the Transaction is implemented pursuant to a pre-packaged chapter 11
  bankruptcy filing, subject to dilution resulting from the issuance of equity
  under the Management Incentive Plan.

  

 

 

	
  Transaction Terms Consent Fee

  	
  If the Transaction is implemented pursuant to an
  out-of-court exchange, a 5.0% consent fee will be paid to all Noteholders who
  consent to the proposed amendments to the indenture governing the Notes (see
  “Exit Consents” below).  If the
  Transaction is implemented pursuant to a pre-packaged chapter 11 bankruptcy
  filing, no consent fee will be paid.

  
	
  Minimum Acceptance Ratio

  	
  If the Transaction is
  implemented pursuant to an out-of-court exchange, a minimum acceptance level
  of 97.0% is required to consummate the Transaction, however, the acceptance
  level may be amended (but not to a level below 93%) upon mutual consent from
  Holdings and             so long as
  they remain Noteholders.

  
	
  Financing Component Tack-On to
  Existing Senior      Secured Floating
  Rate Notes due 2011 (the “FRNs”)

  	
  Each Noteholder listed
  on Schedule A hereto will commit to purchase their pro rata portion of
  $9.9 million face amount of newly issued FRNs at a price of 80% as set forth
  next to such Noteholder’s name on Schedule A, provided that the
  Transaction is completed pursuant to an out-of-court exchange; provided,
  further, that             commit to
  purchase (based on their respective pro rata ownership of the Notes) 100% of
  the newly issued FRNs committed to and not purchased by the other Noteholders
  listed on Schedule A.  The financing is
  at the option of the Company; provided, that the Company shall notify the
  Noteholders whether it will access the financing under the commitment on or
  before the Effective Date.  In the
  event the Company so notifies the Noteholders that it will access such
  financing, the Company will use commercially reasonable efforts to close the
  financing within 30 days following the Effective Date.  While the commitment is outstanding, the
  Company has the option to draw down on the commitment in whole, but not in
  part.  Unless the Company files a case
  under chapter 11 of the Bankruptcy Code, for the period from the date hereof
  until six months following the Effective Date, in the event that the Company
  has not accessed the financing under the commitment and shall seek FRN
  financing, it shall offer to the Noteholders listed on Schedule A, pro rata
  as set forth therein, the option to provide up to the first $9.9 million of
  such financing by purchasing FRNs at the same price and on the same terms as
  set forth herein.  Normal and customary
  rules apply to the FRN tack-on—the Company will use commercially reasonable
  efforts to file a registration statement covering the Notes within 60 days
  from first issue date of the Notes, commercially reasonable efforts to make
  registration effective as soon as practicable thereafter, other terms
  consistent with prior FRN deal terms. 
  All offers and sales of FRNs will be subject to compliance with
  applicable securities laws.  The right
  of any Noteholder listed on Schedule A to participate in any issuance
  of FRNs shall be conditioned on such Noteholder providing the Company with

  

 

 

	
  

  	
   customary
  representations that it is an “accredited investor”.

  
	
  Exit Consents:

  	
  Noteholders exchanging
  the Notes shall be deemed to have agreed to certain to-be-determined
  modifications and amendments to the Notes and the indenture governing the
  Notes.

  
	
  Management Incentive Plan

  	
  A management incentive
  plan will be implemented by the Company to provide equity incentives to its
  management.  Any equity issued under
  the Management Incentive Plan will dilute all holders of Common Stock,
  including the Noteholders and the Existing Equity Holders, on a pro rata
  basis.

  
	
  Conditions:

  	
  Closing of the
  transaction shall be conditioned upon, among other things,  (i) confirmation that the proposed
  Transaction does not create any materially adverse tax consequences for the
  Company, and (ii) there not having occurred an event or condition, except for
  the filing of a bankruptcy case, that has had or reasonably could have a
  material adverse effect on the business, assets or financial performance of
  the Company.

  
	
  Professional Fees:

  	
  The Company will pay
  the reasonable fees and expenses of professional advisors to the Committee in
  accordance with fee reimbursement letter agreements to be negotiated.

  
	
  Board of Directors:

  	
  Composition of the
  board of directors (the “Board”) of Holdings to be as follows upon the
  Effective Date:  (i) five (5) directors
  designated by the Committee, (ii) one (1) director designated by the Existing
  Equity Holders and (iii) one (1) management-appointed director, who shall be
  the Company’s CEO.  The directors
  designated by the Committee shall be reasonably acceptable to the current
  Board and shall consist of persons that permit the Company to comply with the
  director independence requirements that are imposed on public companies.

  
	
  Lock-up Agreements:

  	
  Upon agreement among
  the Company and the Committee regarding the terms of this Term Sheet, each
  member of the Committee will enter into a formal Lock-Up Agreement, which
  will (i) indicate Noteholder support for the transaction, the principal terms
  of which shall be incorporated into the Lock-Up Agreement, (ii) indicate
  Noteholder consent for a prepackaged plan of reorganization under chapter 11
  of the United States Bankruptcy Code as an alternative if the requisite
  consents to the transaction are not obtained and (iii) ensure that if a Note
  is sold or conveyed in any way (a “Sale Transaction”), the Sale Transaction
  will be conditioned upon the assumption of the Lock-Up Agreement by the
  transferee of the Note.

  

 

 

	
  Registration Rights:

  	
  Holders of 5% or more of Common Stock to receive one
  demand and two piggy-back registration rights.

  
	
  Existing Options:

  	
  Existing options are
  currently out-of-the-money and are expected to remain outstanding.

  
	
  Releases:

  	
  Usual and customary for
  comparable transactions, as described in the Registration Statement filed
  with the SEC.

  
	
  Indemnification:

  	
  Usual and customary for
  comparable transactions, as described in the Registration Statement filed
  with the SEC. Indemnification of directors to extend to the maximum allowable
  under Delaware law.

  
	
  D & O Insurance:

  	
  Usual and customary for
  comparable transactions.

  

 

 

SCHEDULE A

The following Noteholders
who have signed Lockup Agreements shall be entitled to participate in the $9.9
Million FRN commitment on a pro rata basis in accordance with the respective
principal amount on Notes held by each:

	
  Name of Noteholder

  	
   

  	
  Principal Amount of FRNs to

  be Purchased ($)

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