Document:

Exhibit 10.1

EXECUTION VERSION

GOVERNANCE AND STANDSTILL AGREEMENT

This
GOVERNANCE AND STANDSTILL AGREEMENT
(this “Agreement”), dated as of March 16, 2007, is entered into by
and among Alliance Imaging, Inc., a Delaware corporation (together with its
successors, the “Company”), OCM Principal Opportunities Fund IV, L.P., a
California limited partnership (“OCM Fund” and, together with its
Affiliates (as defined below), successors and Permitted Assignees (as defined
below), “Oaktree”), and MTS Health Investors II, L.P., a Delaware
limited partnership (“MTS Health Investors” and, together with its
Affiliates, successors and Permitted Assignees, “MTS” and, together with
Oaktree, the “Oaktree Parties”).

W  I  T  N  E  S  S
E  T  H

WHEREAS,
affiliates of Kohlberg Kravis Roberts & Co. (“KKR”) beneficially own
as of the date hereof 25,944,570 shares of the Common Stock (as defined below),
representing approximately 52% of the Adjusted Outstanding Common Stock (as
defined below);

WHEREAS,
KKR, OCM Fund and MTS Health Investors are entering into that certain Stock
Purchase Agreement dated as of the date hereof (the “Stock Purchase
Agreement”) pursuant to which KKR will agree to sell, and OCM Fund and MTS
Health Investors will agree to buy, 24,501,505 shares of Common Stock, representing
approximately 49% of the Adjusted Outstanding Common Stock of the Company; and

WHEREAS,
in connection with the execution of the Stock Purchase Agreement, KKR and a
Special Committee of the Board of Directors comprised of independent and
disinterested directors unaffiliated with KKR (the “Special Committee”)
has requested that the Oaktree Parties enter into this Governance and
Standstill Agreement.

NOW,
THEREFORE, in consideration of the mutual agreements and understandings set
forth herein, the parties hereto hereby agree as follows:

ARTICLE
I.

CERTAIN DEFINITIONS

Section
1.1            Definitions.  As used in this Agreement, the following
terms shall have the meanings set forth below:

“Adjusted
Outstanding Common Stock” shall mean, at any time, the total number of
shares of outstanding Common Stock at such time.

“Affiliate”
shall mean, with respect to any Person, any other Person that directly or
indirectly controls, is controlled by, or is under common control with, such
Person.  As used in this definition,
“control” (including its correlative meanings, “controlled by” and “under
common control with”) shall mean the possession, directly or indirectly, of
power to direct or cause the direction of management or policies (whether
through ownership of securities or partnership or other ownership interests, by
contract or otherwise).

“Agreement” shall mean this Agreement as in effect on the date
hereof and as hereafter from time to time amended, modified or supplemented in
accordance with the terms hereof.

“Beneficial
Ownership” or “Beneficially Own” shall have the meaning set forth in
Rule 13d-3 under the Exchange Act.

“Board
of Directors” shall mean the Board of Directors of the Company as from time
to time hereafter constituted.

“Business Day” shall mean any day, other than a Saturday, Sunday
or a day on which commercial banks in New York, New York are authorized or
obligated by law or executive order to close.

“Common Stock” shall mean the common stock, par value $0.01 per
share, of the Company.

“Company” shall have the meaning set forth in the preamble
hereto.

“Designee” shall have the meaning set forth in Section 2.1(b).

“Exchange Act” shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations promulgated thereunder.

“KKR Management Agreement” shall mean that certain letter
agreement, dated as of November 2, 1999, by and between the Company and
Kohlberg Kravis Roberts & Co., L.P. relating to management, consulting and
financial services to the Company.

“Person” shall mean an individual, corporation, unincorporated
association, partnership, trust, joint stock company, joint venture, business
trust or unincorporated organization, limited liability company, any
governmental entity or any other entity of whatever nature.

“Representatives” shall mean, with respect to any Person, such
Person’s directors, officers, employees, agents and other representatives
acting in such capacity.

“SEC”
shall mean the United States Securities and Exchange Commission.

“Securities Act” shall mean the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder.

“Standstill Limit” shall mean 49.9% of the Adjusted Outstanding
Common Stock.

“Standstill
Period” shall mean the period beginning on the Closing Date (as defined in
the Stock Purchase Agreement) and ending on the third anniversary thereof.

“Unaffiliated Director”
shall mean a member of the Board of Directors who is neither (a) an affiliate
of any of the Oaktree Parties, nor (b) an employee of the Company.

 2
 

ARTICLE
II.

CORPORATE GOVERNANCE

Section 2.1            Board
of Directors.

(a)           The parties agree that, during the
Standstill Period, the number of directors of the Board of Directors shall be
fixed at seven (7) members, which number shall not be modified except pursuant
to an affirmative vote of 66-2/3% of the directors then in office at the
time of such modification or a greater number if required in the Company’s
Certificate of Incorporation and/or Bylaws.

(b)           For so long as the
Oaktree Parties Beneficially Own an aggregate of at least 35% of the Adjusted
Outstanding Common Stock, the Oaktree Parties shall have the right to nominate
three (3) members to the Board of Directors (each, a “Designee,” and
collectively, the “Designees”). 
Each Designee shall be subject to the reasonable prior approval of a
majority of both the Unaffiliated Directors and the Nominating/Corporate
Governance Committee and shall continue to serve as a director until the sooner
of such director’s death, resignation, or the next election of directors at
which his/her class of directors shall be elected.  Each Designee shall be nominated to serve in
a different class of the Board of Directors. 
Class I of the Board of Directors shall have three (3) members,
consisting of one (1) Designee, one (1) Unaffiliated Director, and the
Company’s Chief Executive Officer.  Each
of Classes II and III shall have two (2) members, consisting of one (1)
Designee and one (1) Unaffiliated Director. 
Subject to the completion of commercially reasonable and timely due
diligence by the Unaffiliated Directors which has been commenced prior to the
date hereof, Stephen Kaplan, Michael P. Harmon and Curtis S. Lane shall be the
initial Designees for election to the Board of Directors.  In
the event that the Oaktree Parties Beneficially Own less than 35% but at least
25% of the Adjusted Outstanding Common Stock, the Oaktree Parties shall have
the right to nominate two (2) Designees, a Class II Director and a Class III
Director.  In that case, the number of
Designees on committees of the Board of Directors as set forth below shall be
reduced by one.  In the event that the
Oaktree Parties Beneficially Own less than 25% but at least 15% of the Adjusted
Outstanding Common Stock, the Oaktree Parties shall have the right to nominate
one (1) Designee, a Class III Director. 
In that case, the Designee shall not be entitled to sit on any of the
committees of the Board of Directors set forth below.  In the event that the Oaktree Parties
Beneficially Own less than 15% of the Adjusted Outstanding Common Stock, the
Oaktree Parties shall have no contractual right to nominate any Designees (but
nothing contained herein shall adversely affect their rights to make
nominations as a stockholder at such time).

(c)           Subject to applicable law, in the
event any Designee on the Board of Directors shall cease to serve as a director
for any reason (other than the failure of the stockholders of the Company to
elect such person as director), the vacancy resulting therefrom shall be filled
by another Designee, subject to reasonable prior approval of the Unaffiliated
Directors and the Nominating/Corporate Governance Committee.

 3
 

Section 2.2            Board
Committees.

(a)           Executive Committee.  The parties agree the Executive Committee of
the Board of Directors shall be disbanded effective as of the date of the consummation of the transactions contemplated by the Stock Purchase
Agreement, and it will not be reconstituted without the prior
consent of a majority of the Unaffiliated Directors.

(b)           Audit Committee.  The parties agree that during the Standstill
Period and for so long as otherwise required by applicable law and the rules
and regulations of the New York Stock Exchange and any successor organization
on which the Company’s Common Stock is listed, the Audit Committee of the Board
of Directors shall be comprised exclusively of Unaffiliated Directors.

(c)           Compensation Committee.  Subject to applicable law and compliance with
the rules and regulations of the New York Stock Exchange and any successor
organization on which the Company’s Common Stock is listed, the parties agree
that during the Standstill Period the Compensation Committee of the Board of
Directors shall be comprised of four (4) members, consisting of two (2)
Designees and two (2) Unaffiliated Directors. 
Subject to applicable law and compliance with the rules and regulations
of the New York Stock Exchange and any successor organization on which the
Company’s Common Stock is listed, the Chairperson of the Compensation Committee
shall be a Designee.  The parties and
their Designees agree to use commercially reasonable efforts to prepare for
approval by the Board of Directors a new Compensation Committee charter which
will be compliant with applicable law and with the rules and regulations of the
New York Stock Exchange and any successor organization on which the Company’s
Common Stock is listed, such charter to be effective as of the closing of the
transactions contemplated by the Stock Purchase Agreement.

(d)           Nominating/Corporate Governance
Committee.  Subject to applicable law
and compliance with the rules and regulations of the New York Stock Exchange
and any successor organization on which the Company’s Common Stock is listed,
the parties agree that during the Standstill Period the Nominating/Corporate
Governance Committee of the Board of Directors shall be comprised of four (4)
members, consisting of two (2) Designees and two (2) Unaffiliated
Directors.  During the Standstill Period,
the Chairperson of the Nominating/Corporate Governance Committee shall be an
Unaffiliated Director.  The parties and
their Designees agree to use commercially reasonable efforts to prepare for
approval by the Board of Directors a new Nominating/Corporate Governance
Committee charter which will, among other things, (i) comply with applicable
law; (ii) comply with the rules and regulations of the New York Stock Exchange
and any successor organization on which the Company’s Common Stock is listed;
and (iii) provide that the Board of Directors shall not nominate any person to
serve as a director of the Company unless such person has been previously
approved for nomination by the Nominating/Corporate Governance Committee, such
charter to be effective as of the closing of the transactions contemplated by
the Stock Purchase Agreement.

(e)           Finance Committee.  The parties agree a new Finance Committee of
the Board of Directors shall be created upon consummation of the
transactions contemplated by the Stock Purchase Agreement.  During the Standstill Period, the Finance
Committee of the Board of Directors shall be comprised of three (3) members,
consisting of the Company’s Chief Executive Officer, one (1) Designee, and one
(1) Unaffiliated Director and the Chairperson of the Finance Committee shall be
the Company’s Chief Executive Officer. 
The parties and their Designees

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agree to use commercially
reasonable efforts to prepare a new Finance Committee charter for approval by
the Board of Directors, such charter to be effective as of the closing of the
transactions contemplated by the Stock Purchase Agreement.

Section 2.3            No
Management Fees to be Paid to the Oaktree Parties.  The parties agree that, during the Standstill
Period and in the absence of approval thereof in accordance with Section 203 of
the Delaware General Corporation Law, the Company shall not pay to any of the
Oaktree Parties any management or similar fees; provided,
however, nothing in this Section 2.3 shall prohibit the
Company from indemnifying a Designee as a director of the Company or from
reimbursing a Designee for expenses incurred as a director, in each case on
terms and to the same extent the Company indemnifies or reimburses expenses of
its other directors pursuant to its organizational documents, indemnity
agreements, directors’ and officers’ liability insurance policies in effect
from time to time, and applicable law.

Section 2.4            Management
Rights.

The parties agree that during the Standstill Period.

(a)            Each
of the Oaktree Parties shall be permitted to consult with management of the
Company (the “Management”) on significant business issues, including
Management’s proposed annual operating plans, and Management will make itself
available to meet with each of the Oaktree Parties regularly during each year
at mutually agreeable times for such consultation and to review progress in
achieving said plans.

(b)           In
the event of any material development to or affecting the Company’s business,
the Company shall provide the Oaktree Parties with the opportunity, on
reasonable prior written notice, to consult with the Company’s Management of
its views with respect thereto.

(c)            The
Oaktree Parties may examine the books and records of the Company and visit and
inspect its facilities and may reasonably request information at reasonable
times and intervals concerning the general status of the Company’s financial conditions
and operations.

(d)           On
reasonable prior written notice, the Oaktree Parties may discuss the business
operations, properties and financial and other conditions of the Company with
the Company’s Management and with the Company’s independent accountants.

(e)            The
Oaktree Parties shall be entitled to request that the Company provide, when
available, copies of (i) all financial statements, forecasts and projections
provided to or approved by the Board of Directors; (ii) all consolidated
balance sheets and consolidated statements of income and cash flows; (iii) all
notices, minutes, proxy materials, consents and correspondence and other
material that it provides to its directors and stockholders; (iv) any letter
issued to the Company by its accountants with respect to the Company’s internal
controls; (v) any documents filed by the Company with the United States
Securities and Exchange Commission; and (vi) such other business and financial
data as any Oaktree Party reasonably may request in writing from time to time.

 5
 

(f)            No
Oaktree Party will exercise any of the foregoing rights set forth in this Section
2.4 at any time that a representative of such Oaktree Party is a member of
the Board of Directors. In addition, the foregoing rights set forth in this Section
2.4 shall not be exercisable by any Oaktree Party unless (a) such party
Beneficially Owns at least 5% of the Adjusted Outstanding Common Stock (or 2%
in the case of MTS Health Investors); and (b) prior to the exercise of the
rights, (i) such Oaktree Party enters into a confidentiality agreement
reasonably acceptable to the Company which shall govern the manner in which the
Oaktree Party will hold and use the information; and (ii) such Oaktree Party
agrees to abide by all applicable laws and regulations pertaining to the use of
such information, including without limitation, Regulation FD.

ARTICLE
III.

STANDSTILL AGREEMENT

Section 3.1            Standstill
Agreement.

During
the Standstill Period, none of the Oaktree Parties will, directly or
indirectly, nor will it authorize or direct any of its Representatives to (and
will take appropriate action against such Representatives to discourage), in
each case without the prior written consent of a majority of the Unaffiliated
Directors in their sole and absolute discretion:

(i)             acquire, propose to be acquired, or
cause to be acquired, Beneficial Ownership of additional securities of the
Company that would cause the Oaktree Parties’ aggregate Beneficial Ownership of
Common Stock to exceed the Standstill Limit;

(ii)            publicly announce or disclose any
intention, plan or arrangement inconsistent with the foregoing; or

(iii)           take any actions which would be
inconsistent with the purpose and intent of this Section 3.1.

ARTICLE
IV.

PAYMENT
OF CERTAIN COMPANY EXPENSES

Section 4.1.           Payment
of Certain Company Expenses.

At the closing of the transactions contemplated by the Stock
Purchase Agreement and upon presentment to the Oaktree Parties of reasonable
documentation thereof, the Oaktree Parties shall reimburse the Company an
amount not to exceed $1,250,000 for actual expenses (including financial
advisory and legal fees but not including Special Committee member
compensation) incurred by the Company or the Special Committee in connection
with the activities of the Special Committee of the Board of Directors formed
in January 2007.

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ARTICLE
V.

MISCELLANEOUS

Section 5.1            Notices.

All
notices or other communications hereunder shall be deemed to have been duly
given and made if in writing and if served by personal delivery upon the party
for whom it is intended, if delivered by registered or certified mail, return
receipt requested, or by a national courier service, or if sent by facsimile
(with receipt of confirmation of delivery), to the person at the address set
forth below, or such other address as may be designated in writing hereafter,
in the same manner, by such person:

(a)           If to the Oaktree Parties, to:

OCM Principal Opportunities Fund IV, L.P.

c/o Oaktree Capital Management, LLC

333 South Grand Ave., 28th Floor

Los Angeles, CA 90071

Attention:  Michael P. Harmon

Fax: (213) 830-6393

MTS Health Investors II, L.P.

c/o MTS Health Partners

623 Fifth Avenue, 15th Floor

New York, NY 10022

Attention:  Curtis S. Lane

Fax: (212) 887-2111

with a copy to:

Skadden, Arps, Slate,
Meagher & Flom LLP

300 S. Grand Avenue, Suite 3400

Los Angeles, CA 90071

Attention:  Jeffrey H. Cohen and Rick C.
Madden

Fax:  (213) 687-5600

(b)           If to the Company, to:

Alliance Imaging, Inc.

1900 S. State College Blvd., Suite 600

Anaheim, CA 92806

Attention:  Paul S. Viviano, CEO

Fax:  (714) 688-3397

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With a copy to:

Alliance Imaging, Inc.

1900 S. State College Blvd., Suite 600

Anaheim, CA 92806

Attention:  Eli Glovinsky, General
Counsel

Fax:  (714) 688-3397

Gibson, Dunn &
Crutcher LLP

2029 Century Park East, Suite 4000

Los Angeles, CA 90067

Attention:  Jonathan K. Layne

Fax:  (310) 552-7053

Any
such notification shall be deemed delivered (i) upon receipt, if delivered
personally, (ii) on the next business day, if sent by national courier service
for next business day delivery or (iii) the business day on which confirmation
of delivery is received, if sent by facsimile.

Section 5.2            Entire Agreement; Amendment.  This Agreement contains the entire agreement
among the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral or written, with respect to such
matters.  No provision of this Agreement
may be amended or modified in whole or in part at any time unless agreed to in
writing in advance by the parties and a majority of the Unaffiliated
Directors.  No failure on the part of any
party to exercise, and no delay in exercising, any right shall operate as a
waiver thereof nor shall any single or partial exercise by any party of any right
preclude any other or future exercise thereof or the exercise of any other
right.

Section 5.3           Effectiveness.  This
Agreement shall be effective as of the closing of the transactions contemplated
by the Stock Purchase Agreement.  In the
event that the Stock Purchase Agreement is terminated in accordance with its
terms prior to the closing of the transactions contemplated by the Stock
Purchase Agreement, this Agreement shall be of no force or effect.

Section 5.4           Severability.  In
the event that any one or more of the provisions contained in this Agreement or
in any other instrument referred to herein, shall, for any reason, be held to
be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
of this Agreement or any other such instrument.

Section 5.5            Counterparts.  This Agreement may be
executed in one or more counterparts, each of which shall be deemed to
constitute an original, but all of which together shall constitute one and the
same document.

Section 5.6            Governing Law; Jurisdiction;
Waiver of Jury Trial. This
Agreement shall be governed and construed in accordance with the internal laws
(without reference to choice or conflict of laws) of the State of Delaware, and
each party hereby submits to the exclusive jurisdiction of the Delaware Court
of Chancery of the State of Delaware. 
Each party hereby waives all right to a trial by jury in any action,
suit or proceeding brought to enforce or defend any rights or remedies under
this Agreement.  Each party irrevocably
consents to the

 8
 

service
of any and all process in any such action, suit or proceeding by the delivery
of such process to such party at the address and in the manner provided in Section
5.1.

Section 5.7            Specific
Performance.  Each party agrees that
irreparable damage would occur in the event any provision of this Agreement was
not performed in accordance with the terms hereof.  Accordingly, each of the parties hereby
consents to the issuance of injunctive relief without bond by the Delaware
Court of Chancery to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement in addition to any
other remedy to which they are entitled at law or in equity.

Section 5.8            Successors
and Assigns; Third Party Beneficiaries. 
None of the
Oaktree Parties may transfer or assign any of its rights and obligations under
this Agreement without the prior written consent of a majority of the
Unaffiliated Directors; provided, however, that each of the Oaktree Parties may
assign all or a portion of its rights hereunder to an Affiliate or one or more
of its limited partners (each a “Permitted Assignee” and collectively “Permitted
Assignees”) which delivers an executed counterpart to this Agreement as a
condition precedent to the effectiveness of such assignment.  This Agreement shall bind and inure to the
benefit of the Company’s successors. 
Nothing expressed or mentioned in this Agreement is intended or shall be
construed to give any Person other than the Oaktree Parties, the Permitted Assignees,
and the Company, or their successors, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision herein
contained.  Notwithstanding anything to
the contrary contained herein, no purchaser of Common Stock from any of the
Oaktree Parties (other than another of the Oaktree Parties or an Affiliate of
the Oaktree Parties or other Permitted Assignee) shall be deemed to be a
successor or permitted assign by reason merely of such purchase.

Section 5.9            Headings and Captions. The section headings and captions contained
in this Agreement are for reference purposes only, are not part of this
Agreement and shall not affect the meaning or interpretation of this Agreement.

Section 5.10         No
Approval of Stock Purchase Agreement; No DGCL Section 203 Waiver.  For the avoidance of doubt, neither the existence of this Agreement nor
any provision herein shall be construed as either (a) an approval or
disapproval of the Stock Purchase Agreement or the sale of shares thereunder;
(b) an approval or disapproval of any transaction by which any of the Oaktree
Parties may be deemed to be an “interested stockholder” for purposes of
Delaware General Corporation Law Section 203; or (c) a waiver by the Company of
any of the provisions of Delaware General Corporation Law Section 203.  Each of the Oaktree Parties agrees to never
take any position or assert any claim which is contrary to the foregoing.

[signature page follows]

 9

IN WITNESS WHEREOF, this Agreement has been executed by the parties
hereto as of the date first above written.

	
  

  	
  OCM
  PRINCIPAL OPPORTUNITIES FUND IV, L.P

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  OCM PRINCIPAL
  OPPORTUNITIES FUND IV

  
	
   

  	
   

  	
  GP, L.P., its
  General Partner

  
	
   

  	
  By:

  	
  OCM PRINCIPAL
  OPPORTUNITIES FUND IV

  
	
   

  	
   

  	
  GP, LTD, its
  General Partner

  
	
   

  	
  By:

  	
  OAKTREE CAPITAL
  MANAGEMENT, LLC, a

  
	
   

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael P.
  Harmon

  	
   

  
	
   

  	
  Name: Michael P. Harmon

  
	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  Salter

  	
   

  
	
   

  	
  Name: Andrew Salter

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  MTS
  HEALTH INVESTORS II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MTS HEALTH
  INVESTORS II GP, LLC,

  
	
   

  	
   

  	
  its General
  Partner

  
	
   

  	
  By:

  	
  MTS HEALTH
  INVESTORS II GP HOLDINGS,

  
	
   

  	
   

  	
  LLC, the Class A
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Curtis S.
  Lane

  	
   

  
	
   

  	
  Name: Curtis S.
  Lane

  
	
   

  	
  Title: Senior
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLIANCE
  IMAGING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul S. Viviano

  	
   

  
	
   

  	
  Name: Paul S. Viviano

  
	
   

  	
  Title: Chief Executive Officer

  
					

 

[Governance and Standstill Agreement Signature Page]Exhibit
10.2

EXECUTIVE SEVERANCE AGREEMENT

This Executive Severance
Agreement (“Agreement”) is made effective as of                      ,
2007, between Alliance Imaging, Inc., a Delaware corporation (the “Company”),
and                                                  
(“Executive”), an executive of the Company, with reference to the following
facts:

A.  The Company desires the benefits of having
Executive serve as an executive of the Company secure in the knowledge that
certain severance benefits will be paid or provided to Executive in the event
of Executive’s termination from the Company “Without Cause” or a resignation by
the Executive for “Good Reason,” as such terms are defined below and subject to
the terms of this Agreement.

B.  The parties believe it appropriate to
memorialize the Company’s severance obligations to Executive, as set forth
below.

NOW, THEREFORE, in
consideration of good and valuable consideration the receipt of which is hereby
acknowledged, the parties hereby agree as follows:

1.             Severance
Protection.  Effective as of the date
of this Agreement and provided that the Executive satisfies the conditions
described in this Agreement, the Company agrees that should Executive’s
employment subsequently be terminated or ended due to termination by the
Company “Without Cause” (as defined in Section 4 below) or resignation by the
Executive for “Good Reason” (as defined in Section 5 below), the Company shall
pay Executive severance pay equal to     years of Executive’s
then-current annual base salary (such time period shall be referred to herein
as the “Salary Continuation Period”), payable on a bi-weekly basis.  In such event, the Company shall also pay
Executive an amount equal to 100% of Executive’s then-current annual target
incentive bonus (“Target Bonus”) for each year (or portion thereof) of the
Salary Continuation Period.  For example,
if the Executive’s Target Bonus for the year in which the date of his
termination of employment with the Company (“Date of Termination”) occurred is
determined to be equal to $100,000 and the Salary Continuation Period is three
(3) years in length, the Company shall pay Executive a total Target Bonus
payment of $300,000.  The Target Bonus
payment shall be payable by the Company on a bi-weekly basis during the Salary
Continuation Period.  Notwithstanding the
foregoing, effective two (2) years after the date of this Agreement, the Salary
Continuation Period shall be reduced to                   ,
and the amount of severance and benefits payable pursuant to this Agreement
shall be adjusted accordingly.

2.             Other
Severance Benefits.  Upon termination
of Executive’s employment entitling Executive to severance payments as set
forth in Section 1 above, the Company shall maintain in full force and effect
for the continued benefit of Executive during the Salary Continuation Period,
health insurance (including coverage for Executive’s dependents to the extent
dependent coverage is provided by the Company for its employees generally)
under such plans and programs in which Executive was entitled to participate
immediately prior to the Date of Termination, provided that Executive’s
continued participation is possible under the general terms and provisions of
such plans and programs.  In the event
that participation in any such plan or program is barred, the Company shall
arrange to provide Executive with health insurance 

 1
 

benefits at the Company’s expense during the Salary Continuation Period
substantially similar to those which Executive would otherwise have been
entitled to receive under such plans and programs from which his/her continued
participation is barred.  Further, upon
termination of Executive’s employment entitling Executive to severance payments
as set forth in Section 1 above, the Company shall also: (i) continue to pay
Executive any automobile allowance, gas reimbursement and other similar
benefits to which Executive was entitled immediately prior to the Date of
Termination; (ii) continue to provide Executive the same life insurance and
long and short term disability insurance that was provided to Executive
immediately prior to his/her termination or, in the event such coverage is not
available, the Company shall obtain and pay for comparable coverage for
Executive; and (iii) the Company shall reimburse Executive’s actual costs up
to  $35,000 for outplacement services and
administrative support related to Executive’s search for new employment.

3.             Conditions
of Payment.  In order to become
eligible to receive the payments and benefits described above and to continue to
be eligible to receive such payments during the Salary Continuation Period,
Executive must satisfy the conditions of this Agreement, including the
provisions set forth in this Section 3.

(a)           General.  The payment of all severance amounts
hereunder shall be less applicable withholding and shall be treated by the
Company and Executive as severance/liquidated damages to compensate Executive
for any and all claims or damages incurred by Executive of any kind or nature
whatsoever, including but not limited to, contractual, compensatory and
punitive damages arising out of or relating to the termination or end of
Executive’s employment with the Company. 
In addition, in exchange for and as a further condition precedent to
receiving such potential severance pay/liquidated damages, Executive agrees
that upon the termination or end of his/her employment with the Company “Without
Cause” or for “Good Reason”, Executive must sign (and not revoke) a release of
any and all claims that he/she has or may have against the Company and its past
and then current officers, directors and employees relating to or arising out
of his/her employment (or termination of employment) with the Company (under
this Agreement or otherwise), in a form prescribed by the Company.  Executive further acknowledges and agrees
that the potential severance pay and benefits referenced above shall not be
available to Executive should he/she resign employment with the Company for any
reason other than for “Good Reason”, or if his employment with the Company is
terminated due to his death or disability or a “Termination for Just Cause”.

(b)           Noncompetition.  Executive agrees that no Competition Event
(as defined below) shall occur prior to the date on which Executive ceases to
receive payments and benefits pursuant to this Agreement.  For purposes of this Agreement, a “Competition
Event” shall occur if Executive directly or indirectly (i) engages in any
imaging business or any other business that becomes material to the Company’s
business during Executive’s employment by the Company (the “Company Business”)
within the United States that is the same or substantially similar to or
competitive with any service provided by the Company; (ii) competes or
participates as an agent, employee, consultant, advisor, representative or
otherwise in any enterprise engaged in a business which has any operations
engaged in the Company Business within the United States that is the same or
substantially similar to or competitive with any service provided by the
Company; or (iii) competes or participates as a stockholder, partner or joint
venturer, or has any 

 2
 

direct or indirect financial interest, in any enterprise which has any
material operations engaged in the Company Business within the United States
that is the same or substantially similar to or competitive with any service
provided by the Company; provided, however, that nothing contained herein shall
prohibit Executive from owning no more than five percent (5%) of the equity of
any publicly traded entity with respect to which Executive does not serve as an
officer, director, employee, consultant or in any other capacity other than as
an investor.

(c)           Nonsolicitation.  As a means reasonably designed to protect
certain confidential information of the Company which would otherwise
inherently be utilized in the following proscribed activities, and in partial
consideration of the Company’s obligations to make the payments and benefits described
in this Agreement, Executive agrees that he will not, prior to the date on
which Executive ceases to receive payments and benefits pursuant to this
Agreement, solicit or make any other contact with, directly or indirectly, any
(i) customer of the Company as of the Date of Termination with respect to the
provision by Executive of any service to any such customer that is the same or
substantially similar to any service provided to such customer by the Company,
or (ii) employee of the Company on the Date of Termination (or any person who
was employed by the Company at any time during the three-month period prior to
the Date of Termination) with respect to any employment, services or other
business relationship.  For purposes of
Sections 3(b) and 3(c), the term Company shall include Alliance Imaging, Inc.,
its subsidiaries and/or its affiliates.

(d)           Section
409A.  In addition, notwithstanding
any provision to the contrary in this Agreement, no termination benefits to
which Executive becomes entitled under this Agreement shall be provided to
Executive prior to the earlier of (i) the expiration of the 6-month period
measured from the date of his “separation from service” with the Company (as
such term is defined in Treasury Regulations issued under Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”)) or (ii) the date of his
death, if the Executive is deemed at the time of his separation from service to
be a “key employee” for purposes of Code Section 416(i) and such delayed
commencement is otherwise required in order to avoid a prohibited distribution
under Code Section 409A(a)(2)(b)(i). 
Upon the expiration of the applicable Code Section 409A(a)(2) deferral
period, all payments deferred pursuant to this Section 3(d) shall be paid in a
lump sum to the Executive, and any remaining payments due under this Agreement
shall be paid as otherwise provided herein.

4.             Termination
Without Cause; Termination for Just Cause. 
For purposes of this Agreement, termination “Without Cause” shall mean
any termination of Executive’s employment by the Company for any reason other
than a “Termination for Just Cause.”  “Termination
for Just Cause” shall mean termination of Executive’s employment by the Company
as the result of one of the following:  (a)
Executive has been convicted of a felony (other than a motor vehicle moving
violation); (b) Executive has been convicted of stealing funds or property from
the Company or otherwise engaged in fraudulent conduct against the Company; (c)
Executive has engaged in knowing and willful misconduct which is materially
injurious to the Company; (d) Executive has failed or refused to comply with
directions that are reasonably consistent with Executive’s current executive
employee title and the terms of his employment, the failure with which to
comply is materially injurious to the Company; or (e) Executive has repeatedly
failed or refused to comply with directions that are reasonably consistent with
Executive’s current executive employee title and the terms of his
employment.  Notwithstanding 

 3
 

clause (e) of the preceding sentence, no act or omission by the
Executive shall constitute a basis for Termination for Just Cause hereunder
unless the Company has given detailed written notice thereof to the Executive,
and the Executive has failed to remedy such act or omission within a reasonable
time after receiving such notice.

5.             Resignation for Good Reason.  For purposes of this Agreement, resignation
by Executive for “Good Reason” shall mean resignation for the following events:  (a) the Company reduces Executive’s base
salary, (b) the assignment to the Executive of any duties inconsistent in any
material respect with the Executive’s position with the Company (including
status, offices, titles and reporting requirements), authority, duties or
responsibilities, (c) any material failure by the Company to comply with any of
the provisions of any employment agreement between Executive and the Company,
which is not remedied within 15 days after notice thereof from the Executive,
or (d) the Company requires Executive to change the location of his principal
office from his current office location, or such other locations agreed upon by
the Company and the Executive.  The
Company and Executive further agree that for a resignation to constitute a
resignation by Executive for “Good Reason”, Executive must provide written
notice to the Company of his/her intent to resign within thirty (30) days of
one of the triggering events outlined in this Section 5.

6.             Excess
Parachute Payments.

(a)           Excise
Tax.  Generally, it is the intention
of the Company and Executive that Executive receive the full benefits available
under this Agreement in the event of a termination “Without Cause” or a
resignation by Executive for “Good Reason”. 
In the event that

(i)            all
or any portion of any payment or benefit provided by the Company pursuant to
this Agreement (a “Payment”), would be subject to the excise tax imposed by
Section 4999 of the Code (or any successor provision thereto), by reason of
being considered “contingent on a change in ownership or control” of the
Company, within the meaning of Section 280G of the Code (or any successor
provision thereto), or any interest or penalties with respect to such tax (such
tax, together with any such interest and penalties, being hereafter
collectively referred to as the “Excise Tax”), and

(ii)           the
aggregate present value of Executive’s “parachute payments” as defined in
Section 280G(b)(2) of the Code and as determined in accordance with the
requirements of Section 280G of the Code and the regulations promulgated
thereunder (“280G Parachute Value”) exceeds 110% of Executive’s “280G Parachute
Limit” (such limit is equal to three times Executive’s “base amount” (as
defined in Section 280G(b)(3) of the Code)), then Executive shall be entitled
to receive an additional payment or payments (collectively, a “Gross-Up Payment”)
as described in Section 6(b).

However, if Executive’s 280G Parachute Value is equal to or greater
than the 280G Parachute Limit, but does not exceed 110% of the 280G Parachute
Limit, then the Payments shall be reduced such that the 280G Parachute Value that
Executive is entitled to receive shall be one dollar ($1) less than the maximum
amount which Executive may receive without becoming subject to the tax imposed
by Section 4999 of the Code.

 4
 

(b)           Gross-Up
Payment.  In the event that Executive’s
280G Parachute Value exceeds 110% of the 280G Parachute Limit, the Company
shall provide Executive with a Gross-Up Payment in an amount such that, after
payment by the Executive of all taxes (including any interest or penalties
imposed with respect to such taxes and including any Excise Tax) imposed upon
the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment
equal to the Excise Tax imposed upon the Payments.

(c)           Determination.  The amount of the Excise Tax, whether a
Gross-Up Payment is required to be paid by the Company to the Executive pursuant
to Section 6(b) or a reduction of Payments is required pursuant to Section 6(a),
and the amount of such Gross-Up Payment or Payment reduction, if any, shall be
made by a nationally recognized accounting firm (the “Accounting Firm”)
selected by the Company and reasonably acceptable to the Executive.  For purposes of making the calculations
required by this Section, the Accounting Firm may make reasonable assumptions
and approximations concerning applicable taxes and may rely on reasonable, good
faith interpretations concerning the application of Sections 280G and 4999 of
the Code.  The Company shall bear all
fees and expenses that the Accounting Firm may reasonably incur in connection
with any calculations contemplated by this Section.  The Company and the Executive shall furnish
to the Accounting Firm such information and documents as the Accounting Firm
may reasonably request in order to make its determination under this
Section.  The Company shall direct the
Accounting Firm to submit its determination and detailed supporting
calculations to both the Company and the Executive within thirty (30) days
after the date on which the release described in Section 3(a) above becomes
effective.  Any Gross-Up Payment under
this Section 6 shall be paid to Executive as soon as may be practicable after
such final determination is made, with the intent that such Gross-Up Payments
shall be made proportionately and contemporaneously with the Payment(s) which
are subject to the Excise Tax.

7.             Equitable
Remedies.  Executive acknowledges
that irreparable damage would occur in the event of his breach of the
provisions of this Agreement.  It is
accordingly agreed that, in addition to any other remedy to which it is
entitled at law or in equity, the Company shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement.

8.             Successors.  This Agreement establishes contract rights
which shall be binding upon, and shall inure to the benefit of, the successors,
assigns, heirs and legal representatives of the parties hereto.

9.             Attorneys’ Fees.  The prevailing party in any action to enforce
this Agreement shall be entitled to receive its reasonable attorney’s fees and
costs.

10.           Severability.  Should any provision of this Agreement, or
any clause hereof, be held to be invalid, illegal or unenforceable, in whole or
in part, the remaining provisions and clauses of this Agreement shall remain
fully enforceable and binding on the parties.

11.           Modification and Waiver.  No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both of the
parties hereto.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether of not similar) nor shall such waiver
constitute a continuing waiver.

 5
 

12.           Choice of Law.  The validity, interpretation, performance and
enforcement of this Agreement shall be governed by the laws of the State of
California.

13.           Entire Agreement.  This Agreement constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof and
shall supersede all prior or contemporaneous written or oral agreements
concerning such subject matter.

[Signature page
follows]

 6
 

IN WITNESS
WHEREOF, the parties have executed this Agreement effective as of the day and
year first written above.

 

	
  

  	
  ALLIANCE IMAGING, INC.,

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
							

 

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