Document:

Exhibit 10.25

SERVICES AGREEMENT

 

        THIS SERVICES AGREEMENT (“Agreement”) is made July 1, 2006,
by and between Michael A. Boylan (“Boylan”), and InSight Health Corp., a
Delaware corporation (“InSight”).

 

        WHEREAS, Boylan and InSight have agreed that Boylan will
provide certain services to InSight upon the terms and conditions set forth in
this Agreement;

 

        NOW, THEREFORE, in consideration of the foregoing and mutual
covenants and agreements contained herein, and for their mutual reliance, the
parties hereto, desiring to be legally bound, agree as follows:

 

1.     Boylan’s Services.

 

                (i)            Services.  Boylan agrees to perform and provide certain
enterprise development services to the Company relating to the disposition of
certain imaging centers and negotiation of certain acquisitions and joint
venture arrangements as mutually agreed upon by Boylan and InSight.  Boylan shall report to Bret W. Jorgensen,
President and CEO of InSight or his delegee with regard to the services.  Boylan may decline to accept any project requested
by InSight, however once Boylan agrees to provide services for a project,
Boylan agrees to complete the services unless instructed by InSight
otherwise.  Boylan shall determine the
method, details and means of performing the services.

 

                (ii)           Place
of Work and Equipment.  Boylan shall
perform the services at any place or location and at such times as Boylan shall
determine.  The parties agree that if the
nature of the services to be provided by Boylan necessitates that the services
be performed on InSight’s premises, InSight agrees to furnish space on its
premises for use by Boylan while performing these services.  Boylan agrees to perform the services on
InSight’s premises during InSight’s regular business hours.

 

2.     Compensation.  In consideration for the services performed
by Boylan, InSight agrees to pay Boylan $25,500 per month, upon receipt by
InSight of an invoice from Boylan. InSight shall reimburse Boylan for
reasonable out-of-pocket expenses incurred with the prior approval of InSight,
including but not limited to, airfare, lodging and meals.

 

3.     Term and Termination.   This Agreement shall take
effect on July 1, 2006, and shall continue in force and effect for sixty (60)
days thereafter, or until terminated as provided herein.  This Agreement may be renewed for subsequent
terms of thirty (30) days upon mutual agreement of the parties.  Either party may terminate this Agreement at
any time by giving notice to the other party at least thirty (30) days in
advance of the termination specified in such notice.  In the event of a default by either party in
the performance of its obligations hereunder, the other party may terminate
this Agreement by giving written 

 

 

notice
to the defaulting party at least ten (10) days in advance of the termination
date specified in such notice.

 

4.     Independent Parties.  This Agreement is not intended to create or
be deemed or construed to create any relationship between the parties hereto
other than that of contractor solely for the purpose of effecting the provisions
of this Agreement.  Neither of the
parties hereto, nor any of their respective officers, directors or employees,
shall act as nor be construed to be the agent, employee or representative of
the other.  Both parties acknowledge
that Boylan is not an employee for state or federal tax purposes.  Boylan shall be solely responsible for all
withholding all federal and state income taxes for Boylan.  Boylan shall retain the right to perform
services for others during the term of this Agreement; provided Boylan is in
compliance with Section V of the Executive Employment Agreement dated June 29,
2001, among Boylan, InSight and InSight Health Services Holdings Corp.

 

 

5.     Assignment/Third Party Rights.  Neither party hereto shall assign this
Agreement or delegate its obligations hereunder without the prior written
consent of the other party hereto in each instance. Notwithstanding the
foregoing, all covenants, conditions, and obligations contained herein shall be
binding upon, and shall inure to the benefit of, the respective successor and
assigns of the parties.  This Agreement
is intended solely for the mutual benefit of the parties hereto and there is no
intention, expressed or otherwise, to create any rights or interests for any
other party or person other than the parties.

 

6.     Severability/Waiver.  The provisions of this Agreement shall be
severable, and if any provision shall be prohibited by law, or invalid, or
unenforceable in whole or in part for any reason, the remaining provisions
shall remain in full force and effect. 
The waiver by either party of a breach or violation of any provision of
this Agreement shall not operate as or be construed to be a continuing waiver
or a waiver of any subsequent breach of either the same or any other provision
of this Agreement.

 

7.     Entire Agreement/ Amendments.  This Agreement contains the entire agreement
between the parties with respect to the subject hereof.  The parties expressly agree there are no
promises, agreements, conditions, undertakings, warranties, or representations,
oral or written, expressed or implied, between them, other than as set forth
herein. This Agreement may not be modified orally or in any other manner except
by an agreement in writing signed by both parties hereto or their respective
successors-in-interest.

 

8.     Notice.  All notices and other communications under
this Agreement shall be given in writing and shall be duly given (i) if
personally delivered, or (ii) if mailed by overnight courier, certified or
registered mail, return receipt requested, first-class postage prepaid, to the
party at the address listed at the end of this Agreement.

 

9.      Confidential Information. Boylan agrees
that, during and after the term of this Agreement, Boylan shall keep
confidential and not (i) communicate or disclose to any person any Confidential
Information (as defined below), or (ii) use or exploit in any 

 

 

fashion
any of such Confidential Information or permit the use or exploitation in any
fashion of any such Confidential Information by any other person or entity.
Boylan acknowledges and agrees that all Confidential Information, and all
copies thereof, are the sole and exclusive property of InSight.  Boylan agrees that, on the termination of
this Agreement, Boylan shall have delivered to InSight all documents and
materials in Boylan’s possession or under Boylan’s control which constitute
Confidential Information, including all copies thereof, and no copies thereof
shall be retained by Boylan. For purposes of this Agreement, “Confidential
Information” shall mean all of InSight’s proprietary information, trade secrets
or other information relating to InSight’s business, or of any customer or
supplier of InSight or its affiliates including but not limited to any and all
customer lists (whether or not current), agreements with customers (whether or
not currently in effect or expired), standard forms of customer agreements,
data concerning customers, data concerning customer service requirements,
policies and procedures, forms of any type, financial information concerning
customers, agreements with equipment manufacturers and other suppliers, trade
secrets, processes, ideas, inventions, programs, data, improvements, know-how,
techniques, drawings, designs, original writings, software programs (including
object code and source code), plans, proposals, marketing and sales plans,
letter of intent, due diligence materials, asset/stock purchase, and related
agreements, financial information concerning InSight and its affiliates.

 

10.  Attorney’s Fees/Governing Law.  In the event of any suit under this
Agreement, the prevailing party shall be entitled to, in addition to any other
relief granted, reasonable attorney’s fees. 
This Agreement shall be governed by, and construed in accordance with,
the laws of the state where InSight is located.

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed as of the date first above written.

 

	
  “INSIGHT”

  	
   

  	
  “BOYLAN”

  
	
   

  	
   

  	
   

  
	
  InSight Health Corp.

  	
   

  	
  Michael A. Boylan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mitch C. Hill

  	
   

  	
  /s/ Michael A.
  Boylan

  
	
   

  	
  Mitch C. Hill

  	
   

  	
   

  
	
   

  	
  Executive Vice
  President and

  	
   

  	
   

  
	
   

  	
  Chief Financial
  Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address for Notice:

  	
   

  	
  Address for Notice:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  InSight Health Corp.

  	
   

  	
     1005 Putters Place

  
	
   

  	
  26250 Enterprise Court, Suite 100

  	
   

  	
     Doylestown, PA 18901

  
	
   

  	
  Lake Forest, CA 92630

  	
   

  	
   

  
	
   

  	
  Attn: Law DepartmentExhibit 10.1

 

 

July 2,
2006

Mr. Steve
Oreskovich

1302 South 91st Street

West Allis, WI  53214

Dear
Steve,

These past six months have been a very difficult time for the
company and I appreciate this has been a very demanding time for you personally
as well. On behalf of the Board of Directors of the Company, I want to thank
you for your extraordinary efforts during this period in helping us deal with
the demands of our current situation.

As I have indicated to you in recent weeks, you are a
respected and valued member of our Senior Management Team. We would like to
take this opportunity to present you with a compensation package which we hope
properly reflects the value of your efforts and will motivate you to continue
to support the organization as we move forward into the future.

In recognition for your efforts relating to the December 31,
2005, 10K and the March 31, 2006, 10Q, we would like to award you a bonus
of $35,000 which will be paid to you within 30 days of those filings. In
addition to this one-time bonus, there has been a funding of a special pool by
the Board of Directors in recognition of the good work accomplished by the
business units and certain individuals, even though the company did not meet
its 2005 goals. Your bonus payment of $30,000 is anticipated to be paid in a
similar time period after filing the fiscal 2005 financial statements.

We also wish to make adjustments to your role and to your
base salary. We would like you to accept the role of Chief Accounting Officer
and a base salary of $175,000 annually effective July 1, 2006.

In recognition of the challenges facing the company in the
months ahead, we propose paying you a retention bonus if you stay with the
organization through June 30, 2007. This bonus will be

 1
 

 

60% of your base salary at the time of payout.

The following delineates certain circumstances under which
you would receive the retention bonus prior to June 30, 2007:

1.               You are employed by
Merge Healthcare and a “change in control” event occurs before June 30,
2007, (as defined in your Key Officer Agreement already in place) and you are
asked to leave the Company;

2.               You are “constructively terminated” (defined as any
reduction in your responsibilities, authority or compensation package) before June 30,
2007;

3.               You are terminated by Merge Healthcare, other than for
Cause, before June 30, 2007. “Cause” 
is defined as:

·                  your willful and continued failure to substantially perform
your duties with Merge Healthcare (other than failure due to physical or mental
illness);

·                  your willful act of misconduct which is materially injurious
to Merge Healthcare, monetarily or otherwise;

·                  criminal conviction for the commission of a felony;

·                  a willful breach of fiduciary duty involving personal
profit; and

·                  a willful violation of any law, rule or regulation or
final cease and desist order where such violations materially, adversely affect
Merge Healthcare.

The retention bonus will be paid in cash, subject to
withholding and applicable taxes, within thirty (30) days of June 30, 2007.
The right to receive the retention bonus cannot be assigned. Also, the
retention bonus does not guarantee you the right to continue as an employee of
Merge Healthcare. If you voluntarily terminate employment with Merge
Healthcare before June 30, 2007, or you are terminated for Cause, you will
not receive this retention bonus.

During the period of this agreement, defined as the date of
this letter and June 30, 2007, if you are requested to cancel any
previously approved vacation of 3 or more consecutive business days, then you
will be compensated 25% of your base salary for those days previously approved
plus reimbursed for actual costs you incurred through date of cancellation for
each vacation cancelled.

Finally, we would like to confirm that you are eligible for receiving
stock option grant(s) as determined by the Compensation Committee of the
Board of Directors of Merge Healthcare. As always, the issuance of stock
options is at the discretion of the Compensation Committee with approval by the
Board of Directors; they will be able to resume this process once the company
is current with our financial and SEC filings.

 2
 

 

As with all compensation matters, this plan should be treated
in a confidential manner. If you have any questions, please contact me
directly.

Steve, again thank you for your outstanding contribution. We
continue to believe that Merge Healthcare is a company with great promise and
hope that you will continue to be a part of the team that moves forward with a
rebuilding process that positions the company to realize its potential.

Sincerely,

/s/
Dennis Brown

Dennis Brown

Chairman, Audit Committee

I
UNDERSTAND AND ACCEPT THE ABOVE STATED RETENTION PLAN.

	
  /s/ Steve Oreskovich

  	
   

  	
  July 2, 2006

  
	
  Steve Oreskovich

  	
   

  	
  Date

  

 

 

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]