Document:

Exhibit 10(b)  

VIACOM INC.

2000 STOCK OPTION PLAN FOR OUTSIDE DIRECTORS

(AS AMENDED AND RESTATED THROUGH MAY 21, 2003)  

ARTICLE I  

 GENERAL  

SECTION 1.1    Purpose.    

The
purpose of the Viacom Inc. 2000 Stock Option Plan for Outside Directors (the "Plan") is to benefit and advance the interests of Viacom Inc., a Delaware corporation (the "Company"),
and its subsidiaries by obtaining and retaining the services of qualified persons who are not employees of the Company or National Amusements, Inc. or their subsidiaries to serve as directors
and to induce them to make a maximum contribution to the success of the Company and its subsidiaries. The Plan replaces the Viacom Inc. Stock Option Plan for Outside Directors and the
Viacom Inc. 1994 Stock Option Plan for Outside Directors (the "Predecessor Plans"). From and after the Effective Date of the Plan as provided in Article VI below, no further awards shall
be made under the Predecessor Plans. 

SECTION 1.2
    Definitions.    

As
used in the Plan, the following terms shall have the following meanings: 

	(a)
	"Annual
Grant" shall have the meaning set forth in Section 2.1.

	(b)
	"Board"
shall mean the Board of Directors of the Company.

	(c)
	"Class B
Common Stock" shall mean the shares of Class B Common Stock, par value $0.01 per share, of the Company.

	(d)
	"Date
of Grant" shall have the meaning set forth in Section 2.1.

	(e)
	"Effective
Date" shall mean the effective date of the Plan provided for in Article VI below.

	(f)
	"Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, including any successor law thereto.

	(g)
	"Fair
Market Value" of a share of Class B Common Stock on a given date shall be the closing price on such date on the New York Stock Exchange or other principal stock exchange
on which the Class B Common Stock is then listed, as reported by The Wall Street Journal (Northeast edition) as the 4:00 p.m. (New York time) closing price or as reported by any other
authoritative source selected by the Company.

	(h)
	"Initial
Grant" shall have the meaning set forth in Section 2.1.

	(i)
	"Outside
Director" shall mean any member of the Board of Directors of the Company who is not an employee of the Company or National Amusements, Inc. or any of their respective
subsidiaries or a member of the immediate family of a member of the Board who is an employee of any of such companies.

	(j)
	"Participant"
shall mean any Outside Director to whom Stock Options have been granted under the Plan.

	(k)
	"Predecessor
Plans" shall have the meaning set forth in Section 1.1 above.

	(l)
	"Stock
Option" shall mean a contractual right granted to a Participant under the Plan to purchase shares of Class B Common Stock or other securities at such time and price, and
subject to the terms and conditions, as are set forth in the Plan. 

SECTION 1.3    Administration of the Plan.    

The
Plan shall be administered by the members of the Board who are not Outside Directors and such Board members shall determine all questions of interpretation, administration and application of the
Plan. The Board may authorize any officer of the Company to execute and deliver a stock option certificate on behalf of the Company to a Participant. 

SECTION 1.4    Eligible Persons.    

Stock
Options shall be granted only to Outside Directors. 

SECTION 1.5    Class B Common Stock Subject to the Plan.    

Subject
to adjustment in accordance with the provisions of Article III hereof, the maximum number of shares of Class B Common Stock which may be issued under the Plan shall be 1,000,000
shares. The shares of Class B Common Stock shall be made available from authorized but unissued Class B Common Stock or from Class B Common Stock issued and held in the treasury
of the Company. Exercise of Stock Options in any manner shall result in a decrease in the number of shares of Class B Common Stock which thereafter may be issued for purposes of this
Section 1.5, by the number of shares as to which the Stock Options are exercised. Shares of Class B Common Stock with respect to which Stock
Options expire or are cancelled without being exercised or are otherwise terminated, may be regranted under the Plan. 

ARTICLE II  

 PROVISIONS APPLICABLE TO STOCK OPTIONS  

SECTION 2.1    Grants of Stock Options.    

Each
person who becomes a director for the first time on or subsequent to the Effective Date and, at the time such person is first elected or appointed to the Board, is an Outside Director, shall be
granted Stock Options to purchase 10,000 shares of Class B Common Stock (an "Initial Grant"), effective as of the date of such individual's election or appointment to the Board (the "Date of
Grant" of such Stock Options). Each person who is an Outside Director on August 1, 2000, January 31, 2001 and each January 31st thereafter through and including
January 31, 2010 (each, the "Date of Grant" of the respective Stock Options) shall be granted additional Stock Options to purchase the following number of shares of Class B Common Stock
(each, an "Annual Grant"): (i) Annual Grants awarded before May 21, 2003 shall be for 3,000 shares of Class B Common Stock; and (ii) Annual Grants awarded after
May 21, 2003 shall be for 4,000 shares of Class B Common Stock. Each Initial Grant and each Annual Grant shall be subject to the terms and conditions set forth in the Plan and shall have
an option price per share equal to the Fair Market Value of a share of Class B Common Stock on the Date of Grant or, if the Date of Grant is not a business day on which the Fair Market Value
can be determined, on the last business day preceding the Date of Grant on which the Fair Market Value can be determined. All Stock Options granted under the Plan shall be "Non-Qualified
Stock Options" which do not meet the requirements of Section 422 of the Internal Revenue Code of 1986, as amended. The terms and conditions of the Stock Options shall be set forth in an option
certificate which shall be delivered to the Participant reasonably promptly following the Date of Grant of such Stock Options. 

SECTION 2.2    Exercise of Stock Options.    

(a)    Exercisability. Stock Options shall be exercisable only to the extent the Participant is vested therein. Subject to
Section 2.2(c), each Initial Grant of Stock Options under the Plan shall vest and become exercisable on the first anniversary of the Date of Grant. Subject to Section 2.2(c), each Annual
Grant shall vest and become exercisable as follows: (i) for Annual Grants awarded before May 21, 2003, on the first anniversary of the Date of Grant; and (ii) for Annual Grants
awarded after May 21, 2003, in three equal annual installments, on the first, second and third anniversaries of the Date of Grant. 

(b)    Option Period. 

	(i)
	Latest Exercise Date. No Stock Option granted under the Plan shall be exercisable after the tenth anniversary of the Date
of Grant thereof.

	(ii)
	Registration Restrictions. Any attempt to exercise a Stock Option or to transfer any shares issued upon exercise of a
Stock Option by any Participant shall be void and of no effect, unless and until (A) a registration statement under the Securities Act of 1933, as amended, has been duly filed and declared
effective pertaining to the shares of Class B Common Stock subject to such Stock Option, and the shares of Class B Common Stock subject to such Stock Option have been duly qualified
under applicable federal or state securities or blue sky laws or (B) the Board, in its sole discretion, determines, or the Participant desiring to exercise such Stock Options, upon the request
of the Board, provides an opinion of counsel satisfactory to the Board, that such registration or qualification is not required as a result of the availability of any exemption from registration or
qualification under such laws. Without limiting the foregoing, if at any time the Board shall determine, in its sole discretion, that the listing, registration or qualification of the shares of
Class B Common Stock under any federal or state law or on any securities exchange or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or
in connection with, delivery or purchase of such shares pursuant to the exercise of a Stock Option, such Stock Option shall not be exercisable in whole or in part unless and until such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board. 

(c)    Exercise in the Event of Termination of Services. 

	

	(i)    Termination other than for Death or Disability. If the services of a Participant as a director of the
Company terminate for any reason other than for death or disability, the Participant may exercise his or her Stock Options until the first anniversary of the date of such termination, but only to the
extent such Stock Options were vested on the termination date, subject to earlier expiration of such Stock Options pursuant to Section 2.2(b)(i). Upon a termination described in this
Section 2.2(c)(i), the Participant shall relinquish all rights with respect to Stock Options that are not vested as of such termination date.

	

	(ii)    Death. If a Participant dies while serving as a director, his or her Stock Options may be exercised by
any person who acquired the right to exercise such Stock Options by will or the laws of descent and distribution until the first anniversary of the date of death, but only to the extent such Stock
Options were vested on the date of death, subject to earlier expiration of such Stock Options pursuant to Section 2.2(b)(i). All rights with respect to Stock Options that are not vested as of
the date of death will terminate on such date of death.

	

	(iii)    Permanent Disability. If the services of Participant as a director of the Company terminate by reason of
permanent disability, the Participant may exercise his or her Stock Options until the first anniversary of the date of such termination, but only to the extent such Stock Options were vested on the
termination date, subject to earlier expiration of such Stock Options pursuant to Section 2.2(b)(i). Upon a termination described in this Section 2.2(c)(iii), the Participant shall
relinquish all rights with respect to Stock Options that are not vested as of such termination date. 

(d)    Payment of Purchase Price Upon Exercise. Every share of Class B Common Stock purchased through the exercise of a Stock Option
shall be paid for in full in cash (e.g., personal bank check, certified check or official bank check) on or before the settlement date for such share of
Class B Common Stock. In addition, the Participant shall make an arrangement acceptable to the Company to pay to the Company an amount sufficient to satisfy the combined federal, state and
local withholding tax obligations which arise in connection with exercise of such Stock Options. 

ARTICLE III  

 EFFECT OF CERTAIN CORPORATE CHANGES  

In
the event of any merger, consolidation, stock-split, dividend (other than a regular cash dividend), distribution, combination, recapitalization or reclassification that changes the character or
amount of the Class B Common Stock or any other changes in the corporate structure, equity securities or capital structure of the Company, the Board shall make such proportionate adjustments to
(i) the number and kind of securities subject to any Stock Options, (ii) the exercise price of any Stock Options, (iii) the number and kind of securities subject to the Initial
Grants and the Annual Grants referred to in Section 2.1, and (iv) the maximum number and kind of securities available for issuance under the Plan
referred to in Section 1.5, in each case, as it deems appropriate. The Board may, in its sole discretion, also make such other adjustments as it deems appropriate in order to preserve, but not
increase, the benefits or potential benefits intended to be made available hereunder upon the occurrence of any of the foregoing events. The Board's determination as to what, if any, adjustments shall
be made shall be final and binding on the Company and all Participants. 

ARTICLE IV  

 MISCELLANEOUS  

SECTION 4.1
    No Right to Re-election.    

Nothing
in the Plan shall be deemed to create any obligation on the part of the Board to nominate any of its members for re-election by the Company's stockholders, nor confer upon any
Participant the right to remain a member of the Board for any period of time, or at any particular rate of compensation. 

SECTION 4.2    Restriction on Transfer.    

The
rights of a Participant with respect to the Stock Options shall not be transferable by the Participant to whom such Stock Options are granted, except by will or the laws of descent and
distribution. 

SECTION 4.3    Stockholder Rights.    

No
grant of Stock Options under the Plan shall entitle a Participant to any rights of a holder of shares of Class B Common Stock, except upon the delivery of share certificates to a Participant
upon exercise of a Stock Option. 

SECTION 4.4    No Restriction on Right of Company to Effect Corporate Changes.    

The
Plan shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the
Company's capital structure or its business, or any merger or consolidation of the Company, or any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred
or prior preference stocks whose rights are superior to or affect the Class B Common Stock or the rights thereof or which are convertible into or exchangeable for Class B Common Stock,
or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or
otherwise. 

SECTION 4.5    Exercise Periods Following Termination of Services.    

For
the purposes of determining the dates on which Stock Options may be exercised following a termination of services or the death or disability of a Participant, the day following the date of such
event shall be the first day of the exercise period and the Stock Options may be exercised up to and including the last business day falling within the exercise period. Thus, if the last day of the
exercise period is not a business day, then the last date the Stock Options may be exercised is the last business day preceding the end of the exercise period. At the end of the relevant exercise
period, each unexercised Stock Option shall expire. 

SECTION 4.6    Headings.    

The
headings of articles and sections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan. 

SECTION 4.7    Governing Law.    

The
Plan and all rights hereunder shall be construed in accordance with and governed by the laws of the State of Delaware. 

ARTICLE V  

AMENDMENT AND TERMINATION 

SECTION 5.1    General.    

The
Board may at any time and from time to time alter, amend, suspend or terminate the Plan in whole or in part, including, without limitation, amend the provisions for determining the amount of Stock
Options to be issued to an Outside Director, provided, however, that any amendment which under the requirements of applicable law or under the rules of
the New York Stock Exchange or other principal stock exchange on which the Class B Common Stock is then listed must be approved by the stockholders of the Company shall not be effective unless
and until such stockholder approval has been obtained in compliance with such law or rule; and no termination, suspension, alteration or amendment of the Plan that would adversely affect a
Participant's rights under the Plan with respect to any award of Stock Options made prior to such action shall be effective as to such Participant unless he or she consents thereto. 

SECTION 5.2    May 21, 2003 Restatement and Amendment.    

Stockholder
approval for the amendment and restatement of the Plan that was approved by the Board on May 21, 2003 shall be sought at the first annual meeting of stockholders following such
date. In the event that stockholder approval is not obtained on or before the date of such annual meeting, the Plan shall remain in effect in the form in which it existed prior to the May 21,
2003 amendment and restatement. 

ARTICLE VI  

EFFECTIVE DATE 

The
Effective Date of the Plan is May 25, 2000 and stockholder approval was obtained at the first annual meeting of stockholders following such date. Unless earlier terminated in accordance
with Article V above, the Plan shall terminate on the tenth anniversary of the Effective Date, and no further Stock Options may be granted hereunder after such date. No further awards shall be
made under the Predecessor Plans after the Effective Date. Awards outstanding under the Predecessor Plans shall remain outstanding after the Effective Date subject to the terms thereof.QuickLinks
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Exhibit 10.27  

 
 

AMENDMENT TO
  EMPLOYMENT AGREEMENT, NON-QUALIFIED STOCK OPTION AGREEMENT
  AND NON-COMPETE AGREEMENT    
    

        THIS AMENDMENT TO EMPLOYMENT AGREEMENT, NON-QUALIFIED STOCK OPTION AGREEMENT AND NON-COMPETE AGREEMENT (this
"Amendment") is made as of May 21, 2003, with respect to that certain Employment Agreement dated as of July 23, 1997, as amended on
December 31, 1997 and February 5, 1998, a copy of each of which is attached hereto as Exhibit A, (as previously amended to the date
hereof, the "Employment Agreement"), by and between Alliance Imaging, Inc., a Delaware corporation (the
"Corporation"), and Richard N. Zehner (the "Executive"), with respect to that certain
Non-Qualified Stock Option Agreement dated as of November 2, 1999, as amended on June 20, 2001, a copy of each of which is attached hereto as  Exhibit B, (the "Option Agreement") by and between the Corporation and the Executive, and with
respect to that certain Agreement, dated as of July 23, 1997, a copy of which is attached hereto as Exhibit C, (the
"Non-Compete Agreement," and together with the Employment Agreement and the Option Agreement, the
"Agreements"), by and among the Corporation, the Executive and Newport Investment LLC. 

        WHEREAS,
the Employment Agreement provides for the employment of Executive as Chief Executive Officer ("CEO") of the Corporation; 

        WHEREAS,
the Executive has resigned as CEO of the Corporation but desires to continue his employment with the Corporation until May 1, 2005 pursuant to the terms of the Employment
Agreement as amended hereby; 

        WHEREAS,
the Executive and the Corporation have agreed to amend to Option Agreement to reduce the number of shares of the Corporation's common stock, par value $.01 per share (the
"Common Stock") subject to such Option Agreement to 200,000 shares, to provide that all such options are "Time Options" as defined in the Option
Agreement, and to amend the commencement of exercisability with respect to such Time Options; 

        WHEREAS,
the Corporation has agreed to provide the Executive with a retention bonus provided he is employed by the Corporation on May 1, 2005; 

        WHEREAS,
pursuant to the Corporation's 1997 Stock Option Plan (the "1997 Plan") and that certain Stock Option Agreement dated as of
December 18, 1997, as amended as of February 5, 1998, (the "Old Option Agreement") the Executive currently has the right to purchase
1,020,770 shares of the Corporation's Common Stock, par value $.01 per share (the "Common Stock"); 

        WHEREAS,
the Executive and the Corporation have agreed to cancel the Old Option Agreement in return for a cash payment; and 

        WHEREAS,
the Corporation and Executive wish to amend certain provisions of the Employment Agreement, Option Agreement and Non-Compete Agreement to reflect the terms and
conditions of Executive's continued employment with the Corporation. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Corporation and Executive agree as follows: 

        1.    Definitions.    Capitalized terms used in this Amendment but not separately defined herein shall have the
meaning ascribed to them in the Employment Agreement, as amended hereby, and if not defined in the Employment Agreement, such terms shall have the meaning ascribed to them in the Option Agreement, as
amended hereby. 

        2.    Cancellation of Old Options Agreement.    The Executive hereby cancels and relinquishes all rights to purchase
shares of Common Stock pursuant to the Employment Agreement, the Old Option Agreement and the 1997 Plan in return for a cash payment equal to $1,535,748.50. Upon execution of 

 

this
Amendment, the Executive shall return to the Corporation the Old Option Agreement, marked as cancelled, and the Corporation shall pay by wire transfer to an account designated by the Executive
$1,535,748.50 in cash, less required tax withholdings. 

        3.    Amendments to Employment Agreement.    

	(a)
	Recital
"D" of the Employment Agreement is hereby deleted in its entirety.

	(b)
	Paragraph 1
of the Employment Agreement is hereby amended to read in its entirety as follows: 

"1.    Employment and Term. 

(a)    Employment. The Corporation shall employ the Executive for the term set forth in Paragraph 1(b). Initially, the Executive shall
be employed as the Chairman of the Board ("Chairman") of the Corporation. Upon written notice from the Corporation, signed by the then Chief Executive
Officer of the Corporation, the Executive shall resign as the Chairman and as a director of the Corporation. Upon such resignation, the Executive shall continue his employment with the Corporation in
the capacity as "Founder" until the expiration of the Term. 

(b)    Term. The term of the Executive's employment under this Agreement shall end on May 1, 2005. The period of employment as provided
in this Paragraph 1(b) is sometimes referred to as the "Term" herein." 

	(b)
	Paragraph 2
of the Employment Agreement is hereby amended to read in its entirety as follows: 

"2.    Duties.    The Executive's duties shall include the following, provided in each instance that such projects are appropriate
for a senior executive officer of the Corporation: (a) performing such projects as may be assigned to him by the Board or the CEO as requested by them from time to time, (b) assisting
management with sales opportunities upon request by the Board or CEO from time to time, (c) sourcing potential acquisitions and assisting with due diligence in connection therewith upon the
request and direction of the Board or CEO, and (d) becoming actively involved in imaging-related associations at the request of the Board or CEO. The Executive shall devote such time during
reasonable business hours as shall be necessary to fulfill his duties hereunder, and shall use diligent efforts to fulfill faithfully, responsibly and to the best of his ability his duties hereunder.
The Corporation and the Executive shall mutually agree upon the times for the provision of such services. The Executive shall not be required to work more than seven full calendar days in any calendar
month. Any day on which the Executive provides in excess of four hours of services shall for purposes of this Agreement constitute a full calendar day. If less than four hours of services are provided
by the Executive on any day such hours of services shall be aggregated with the hours of service provided by the Executive on other days on which the Executive provides less than four hours of
service. When the aggregate of hours of service provided on such days is greater than four hours, then the aggregate hours of service on such days shall for purposes of this Agreement constitute a
full calendar day. In the performance of all of his duties hereunder, the Executive shall report to the CEO. Executive may be required to travel in the conduct of the Corporation's business and to
discharge his duties hereunder, provided that the amount and nature of such travel is reasonably consistent with the amount and nature of travel engaged in by other senior executives of the
Corporation and the amount of travel required of Executive takes into account the reduction in his service obligations to not more than seven full days per calendar month. During the Term of this
Agreement, the 

2

 

Executive
will not engage in any other employment or business activity or hold any office or position in other companies or organizations without the consent of the Board." 

	(c)
	Section 3
of the Employment Agreement is hereby amended to read in its entirety as follows: 

"3.    Base Salary. For services performed by the Executive for the Corporation pursuant to this Agreement during the period of employment as
provided in Paragraph 1(b) hereof, the Corporation shall pay the Executive an annual salary of $684,738 payable in substantially equal semi-monthly installments in accordance with
the Corporation's regular payroll practices. Except as expressly provided in this Agreement, the Executive shall not be entitled to participate in any bonus or incentive compensation plan of the
Corporation." 

	(d)
	Paragraph 4
of the Employment Agreement is hereby amended to read in its entirety as follows: 

"4.    Retention Bonus. If (x) on May 1, 2005 the Executive is still an employee of the Corporation and has continuously since
the date hereof been an employee of the Corporation, or (y) after the date hereof and prior to May 1, 2005 the Corporation terminates the Executive's employment with the Corporation
other than for Cause, or (z) prior to May 1, 2005 the Executive, while an employee of the Corporation, dies or is disabled (the events set forth in clauses (x), (y) and
(z) shall be referred to, individually, as a "Retention Bonus Event," and collectively as "Retention Bonus Events"), then the Corporation shall pay to the Executive a retention bonus equal to
$740,058.25 in cash (the "Retention Bonus"). If no Retention Bonus Event shall have occurred by May 1, 2005, then the Corporation shall be under no obligation to pay the Retention Bonus. If a
Retention Bonus Event shall occur by May 1, 2005, then on May 1, 2005, the Corporation shall pay by wire transfer to an account designated by the Retention Bonus in cash, less required
tax withholdings." 

	(e)
	Paragraph 5
of the Employment Agreement is hereby amended to read in its entirety as follows: 

"5.    Intentionally Left Blank." 

	(f)
	Paragraph 6
of the Employment Agreement is hereby amended to read in its entirety as follows: 

"6.    Intentionally Left Blank." 

	(g)
	Paragraph 7
of the Employment Agreement is amended to delete the phrase "Paragraphs 3 through 6," and replace it with the phrase "Paragraphs 3 and 4,".

	(h)
	Paragraphs
7(c), 7(e) and 7(f) are deleted. Paragraph 7(d) is renumbered Paragraph 7(c).

	(i)
	Paragraph 9(d)(i) of
the Employment Agreement is hereby amended to read in its entirety as follows: 

"(i) "Accrued Obligations" shall mean, as of the Date of Termination, the sum of (A) the Executive's base salary under Paragraph 3
through the Date of Termination to the extent not theretofore paid, and (B) any expense reimbursement and other cash entitlements accrued by the Executive as of the Date of Termination to the
extent not theretofore paid." 

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	(j)
	Paragraph 9(d)(ii) of
the Employment Agreement is hereby amended to read in its entirety as follows: 

"(ii) Intentionally Left Blank." 

	(k)
	Paragraph 9(d)(iii) of
the Employment Agreement is hereby amended by

	a.
	adding
the phrase "or the CEO" after the phrase "directions of the Board" in both clauses D and E thereof, and

	b.
	deleting
the period at the end of clause E thereof and adding the following, 

",
(F) Executive has breached this Agreement, and has failed to cure such breach, if curable, within thirty (30) days after the Executive's receipt of written notice of such breach from
the Corporation, (G) Executive intentionally disparages the Corporation or its officers, directors or principal stockholders, provided that this clause (G) shall not apply to any
communications either (x) between or among Executive and the Corporation or its officer and directors, or (y) compelled by subpoena or other legal or governmental process, or
(H) other than (a) in connection with his employment with the Corporation, (b) his ownership of no more than five percent (5%) of the equity of any publicly traded entity with
respect to which the Executive does not serve as an officer, director, employee, consultant or in any other capacity other than an investor, and (c) as approved by a majority of the directors
of the Corporation (excluding the Executive if he is at such time a director of the Corporation), the Executive, directly or indirectly, competes or engages, including as an agent, employee,
consultant, advisor, representative or otherwise, in any medical imaging business or any other business that becomes material to the Corporation during Executive's employment with the Corporation (a
"Company Business") within the United States, or directly or indirectly participates as an agent, employee, consultant, advisor, representative,
stockholder, partner or owner in any enterprise which has
any material operations engaged in any Company Business within the United States, and the Executive fails to cease so competing, engaging or participating within fifteen days after receipt of written
notice from the Corporation." 

	(l)
	Paragraph 9(d)(v) of
the Employment Agreement is hereby deleted in its entirety.

	(m)
	Paragraph 10(a)
of the Employment Agreement is amended by

	a.
	deleting
the phrase "Without Good Reason" in the heading of that Paragraph,

	b.
	inserting
"or by the Corporation upon expiration of the Term" after the phrase "by reason of the resignation of the Executive" in the first sentence of that Paragraph,

	c.
	deleting
the phrase "other than Good Reason" in the first sentence of that Paragraph, and

	d.
	by
adding at the end of that Paragraph "; provided further that in the event this Agreement terminates pursuant to Paragraph 9(a) by reason of the death or disability of the
Executive and such death or disability gives rise to a Retention Bonus Event, the Executive's rights pursuant to Paragraph 4 shall survive such termination."

	(n)
	Paragraph 10(b)
of the Employment Agreement is amended by

	a.
	deleting
the phrase "Or Resignation with Good Reason" in the heading of that Paragraph,

	b.
	deleting
the phrase "other than for Cause, death or disability or by reason of the resignation of the Executive for Good Reason" and inserting in its place "(excluding 

4

 

terminations
by the Corporation for Cause, upon termination of the Term, death or disability)" prior to the definition of the term "Severance", 

	c.
	deleting
the phrase "a period equal to the greater of two years and" in clause (ii) of such Paragraph, and

	d.
	deleting
clause (iii) in its entirety and replacing it with the following "(iii) In the event this Agreement terminates pursuant to Paragraph 9(c) by the
Corporation without Cause and such termination gives rise to a Retention Bonus Event, the Executive's rights pursuant to Paragraph 4 shall survive such termination."

	(o)
	The
penultimate sentence of Paragraph 11(b) of the Employment Agreement shall be amended to insert ", to the extent permitted by law," after the word "treated" and before the
word "for."

	(p)
	Paragraph 15(a)
of the Employment Agreement shall be replaced with the following: 

"(a)
If to the Board or the Corporation, to: 

Alliance
Imaging, Inc.

1900 S. State College Blvd., Suite 600

Anaheim, CA 92806

Attn: Chief Executive Officer 

with
a copy to: 

Kohlberg
Kravis Roberts & Co.

2800 Sand Hill Road

Menlo Park, CA 94025

Attn: Michael W. Michelson" 

	(q)
	In
Paragraph 18 of the Employment Agreement, the reference to "Paragraph 8(d)" is hereby replaced with "Paragraph 8."

	(r)
	In
Paragraph 21 of the Employment Agreement, the reference to "Paragraph 15" is hereby replaced with "Paragraph 18."

	(s)
	Exhibit A
of the Employment Agreement is hereby deleted. 

        4.    Amendments to Non-Compete Agreement.    

        (a)   Immediately
following the termination of the Executive's employment with the Corporation by the Corporation without Cause (as defined in the Employment Agreement as
amended hereby), the Executive shall be entitled to receive pursuant to Paragraph 5 of the Non-Compete Agreement, to the extent not previously paid, (x) the Executive's
salary provided for in Paragraph 3 of the Employment Agreement, as amended hereby, (i.e. $684,738) from the Date of Termination until May 1, 2005, and (y) the continuation of
benefits provided to the Executive and/or his family pursuant to Paragraph 7 of the Employment Agreement, as amended hereby, until May 1, 2005. The Corporation shall not be obligated to
make any payment or provide any benefits contemplated by this Section 4 or by Paragraph 5 of the Non-Compete Agreement to the Executive if the Executive (x) fails to
cure a breach of the Non-Compete Agreement within fifteen days after receipt of notice of such breach from the Corporation, or (y) if the Executive's employment with the
Corporation is terminated (a) upon expiration of the Term of the Employment Agreement (i.e. May 1, 2005), (b) by reason of death or disability of the Executive, (c) by the
Corporation for Cause (as defined in the Employment Agreement, as amended hereby), or (d) by the Executive. 

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        (b)   All
payments pursuant to Paragraph 5 of the Non-Compete Agreement shall be made in equal semi-monthly installments on a basis consistent
with the Corporation's then existing regular payroll practices. 

        (c)   Upon
execution of this Amendment, the Executive waives and relinquishes any rights to receive any payments pursuant to Paragraph 5 of the Non-Compete
Agreement in excess of, or in addition to, those provided by this Section 4. 

        5.    Amendment of Option Agreement.    

        (a)   In
order to amend the Option Agreement to cancel the Performance Option with respect to all shares of Common Stock and to reduce the number of shares of Common Stock
subject to the Time Option to 200,000 shares of Common Stock as of the date hereof, the Executive and the Corporation agree as follows. The number of shares of Common Stock which are identified as
subject to the Time Option on the signature page of the Option Agreement is amended from "62,375" (pre-split) to "200,000 (post-split)". The number of shares of Common Stock
which are identified as subject to the Performance Option on the signature page of the Option Agreement is amended from "62,375" (pre-split) to "0." Except as provided in this
Section 5(a), Executive hereby cancels and relinquishes all rights to purchase shares of Common Stock pursuant to the Option Agreement and the Corporation's 1999 Equity Plan. 

        (b)   Section 3.1(a)
of the Option Agreement is deleted in its entirety and replaced with the following: 

"(a)
The Time Option shall become exercisable with respect to 100% of the shares of Common Stock subject to such Time Option on May 1, 2005 provided that on such date Optionee is an employee of
the Company or a Subsidiary. Notwithstanding the foregoing, the Time Option shall become exercisable as to: 

        (i)    100%
of the shares of Common Stock subject to such Option immediately prior to the consummation of a Change of Control (but only to the extent that such Option shall not
have otherwise terminated in accordance with its terms) provided that on such date Optionee is an employee of the Company or a Subsidiary; provided, however, that as a condition subsequent to the
acceleration of the exercisability of the Option pursuant to this paragraph, the Change of Control shall be consummated. In the event the contemplated Change of Control is not consummated, the
acceleration of exercisability and the exercise, if any, of the Option shall be void ab initio; or 

        (ii)    the
Pro Rata Portion of the shares of Common Stock subject to the Option upon the termination of the Optionee's employment with the Company or its Subsidiaries prior to
May 1, 2005 (A) by the Company or its Subsidiaries other than for Cause (as defined in that certain Employment Agreement, dated as of July 23, 1997, as amended on
December 31, 1997, February 5, 1998, February 15, 1998 and May 15, 2003, by and between the Optionee and the Company (the "Employment
Agreement")), or (B) due to Optionee's death or disability (as defined in the Employment Agreement) if at such time Optionee is an employee of the Company or its
Subsidiaries. 

"Change
of Control" means (i) a sale of all or substantially all of the assets of the Company to a Person who is not an Affiliate of Viewer or an entity in which the shareholders of the Company
immediately prior to such transaction do not control more than 50% of the voting power immediately following the transaction, or (ii) a sale by Viewer or any of its Affiliates, including a sale
by way of a merger, resulting in more than 50% of the voting stock of the Company being held by a Person or Group that does not include Viewer or any of its Affiliates and in such transaction Viewer
and its Affiliates sell in excess of 90% of the voting stock of the Company owned by them. 

6

 

"Group"
means two or more Persons acting together as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding or disposing of securities of the Company. 

"Pro
Rata Portion" means 1/24 for each monthly anniversary of May 1, 2003 that occurs prior to the termination of Optionee's employment with the Company and its Subsidiaries, not
to exceed 100%. 

        6.    Release of Corporation by Executive.    

        (a)   General Release. Executive hereby releases and forever discharges the Corporation, its successors and their respective
associates, owners, stockholders, assigns, employees, agents, directors, officers, partners and representatives and all persons acting by, through, under, or in concert with them, or any of them,
(collectively the "Releasees") of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liabilities,
claims, demands, damages, losses, costs or expenses, of any nature whatsoever, known or unknown, fixed or contingent (each referred to as a "Claim" and, collectively, the "Claims"), which he now has
or may hereafter have against the Releasees by reason of any and all acts, omissions, events or facts occurring or existing on or prior to the date hereof related to, arising out of or in connection
with his hiring, employment, change in employment status with the Corporation or transactions contemplated by this Amendment, except as may be expressly provided herein and except that the Executive
does not release any obligation of the Corporation to provide him indemnification as an officer and director of the Corporation based upon events or facts occurring or existing on or prior to the date
hereof. The Claims released hereunder include, without limitation, any alleged breach of the Employment Agreement or other Agreements; any alleged breach of any covenant of good faith and fair
dealing, express or implied; any alleged torts or other alleged legal restrictions relating to the Executive's employment and the termination thereof; and any alleged violation of any federal, state
or local statute or ordinance. Executive represents and warrants that there has been no assignment or other transfer of any interest in any Claim which Executive may have against the Releasees, or any
of them, and Executive agrees to indemnify and hold the Releasees harmless from any liability, claims, demands, damages, costs, expenses and attorneys' fees incurred as a result of any person
asserting any such assignment or transfer of any rights or Claims under any such assignment or transfer from such Executive. Executive agrees that if he hereafter commences, joins in, or in any manner
seeks relief through any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against the Releasees any of the Claims released hereunder, then
he will pay to the Releasees against whom such claim(s) is asserted, in addition to any other damages caused thereby, all attorneys' fees incurred by such Releasees in defending or otherwise
responding to said suit or Claim. The Executive agrees that neither the payment of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever
by the Releasees. 

        (b)   Release of Unknown Claims.

EXECUTIVE ACKNOWLEDGES THAT HE IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST
HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."

EXECUTIVE BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR
EFFECT.

        7.    Accrued and Unused Vacation.    Upon execution of this Agreement, the Corporation shall pay Executive all
accrued and unused vacation time which shall be paid based upon his base salary prior to 

7

 

giving
effect to this amendment ($410,000). The parties agree that the Executive's accrued and unused vacation does not exceed six weeks. 

        8.    Terms.    Any reference to the Agreements in the Agreements, this Amendment, any other amendment to the
Agreements, and any other related document, whether dated prior to or after this Amendment, shall refer to the Agreements as heretofore amended and amended hereby. 

        9.    Merger.    Except as expressly amended above, the Agreements shall remain in full force and effect and the
provisions thereof are hereby incorporated by reference. 

(Signature page follows)

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

	 	 	/s/  RICHARD N. ZEHNER      
RICHARD N. ZEHNER
	

 	
 	

 	
 	

 
	 	 	 	 	 
	 	 	ALLIANCE IMAGING, INC.
	

 	
 	

By:	
 	

/s/  PAUL S. VIVIANO      

	 	 	Name:	 	Paul S. Viviano
	 	 	Title:	 	President and CEO

SIGNATURE PAGE TO AMENDMENT TO EMPLOYMENT AGREEMENT, NON-QUALIFIED STOCK OPTION AGREEMENT AND NON-COMPETE AGREEMENT.

9

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AMENDMENT TO EMPLOYMENT AGREEMENT, NON-QUALIFIED STOCK OPTION AGREEMENT AND NON-COMPETE AGREEMENT

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