Exhibit 10.23
AMENDED AND RESTATED
INDEMNIFICATION AGREEMENT
THIS AMENDED AND RESTATED
INDEMNIFICATION AGREEMENT is made and entered into, effective as
of ,
by and between INSIGHT HEALTH SERVICES CORP., a Delaware
corporation (“INSIGHT”), and
(“INDEMNITEE”) (“Agreement”).
RECITALS
WHEREAS, it is essential for INSIGHT
to retain and attract as directors and officers the most capable
persons available;
WHEREAS, INDEMNITEE is a director or
officer of INSIGHT;
WHEREAS, the Certificate of
Incorporation of INSIGHT requires INSIGHT to indemnify its
directors and officers to the fullest extent permitted by law, and
the INDEMNITEE has been serving and continues to serve as a
director or officer of INSIGHT, in part in reliance on the
Certificate of Incorporation; and
WHEREAS, in recognition of
INDEMNITEE’s need for (i) substantial protection against
personal liability based on INDEMNITEE’s reliance on the
Certificate of Incorporation, (ii) specific contractual
assurance that the protection promised by the Certificate of
Incorporation will be available to INDEMNITEE (regardless of, among
other things, any amendment to the Certificate of Incorporation or
any amendment to or revocation of the Bylaws, or any change in the
composition of INSIGHT’s Board or any acquisition transaction
relating to INSIGHT), and (iii) an inducement to continue to
provide effective services to INSIGHT as a director or officer
thereof, INSIGHT wishes to provide for the indemnification of
INDEMNITEE and to advance expenses to INDEMNITEE to the fullest
extent permitted by law and as set forth in this Agreement, and, to
the extent insurance is maintained, to provide for the continued
coverage of INDEMNITEE under INSIGHT’s directors’ and
officers’ liability insurance policies.
NOW, THEREFORE, in consideration of
the premises contained herein and of INDEMNITEE’s continuing
to serve INSIGHT directly or, while a director or officer of
INSIGHT, at its request, with another enterprise, and intending to
be legally bound hereby, the parties hereto agree as
follows:
ARTICLE I
DEFINITIONS
1.01.
(a)
Affiliate : any Person that, directly or indirectly
through one or more intermediaries, controls or is controlled by,
or is under common control with, the Person specified.
(a)
Board : the Board of Directors of INSIGHT or the
Parent, as the case may be.
(b)
Bylaws : the Bylaws of INSIGHT.
(c)
Change in Control : the occurrence of any of the
following:
(i) the consummation of any
transaction (including, without limitation, any merger or
consolidation) (A) prior to a Public Equity Offering by
INSIGHT or the Parent, the result of which is that (1) the
Parent shall fail to own directly100% of the outstanding capital
stock of INSIGHT or (2) the Principals and their Related
Parties become the “beneficial owner” (as such term is
defined in Rule 13d-3 and Rule 13d-5 under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)
of less than 50% of the Voting Securities of INSIGHT or the Parent,
as the case may be (measured by voting power rather than the number
of shares), or (B) after a Public Equity Offering of INSIGHT
or the Parent (in either case, the issuer of the stock in the
Public Equity Offering being the “IPO Issuer”), the
result of which is that (1) if the IPO Issuer is the Parent,
the Parent shall fail to own directly 100% of the outstanding
capital stock of INSIGHT, (2) the Principals and their Related
Parties fail to own beneficially (as defined above), directly or
indirectly, at least 35% of the IPO Issuer, or (3) any
“person” or “group” (as such terms are used
in Section 13(d) and 14(d) of the Exchange Act),
other than the Principals and their Related Parties, becomes the
beneficial owner (as defined above), directly or indirectly, of a
greater percentage of the voting power of the Voting Securities of
INSIGHT or the Parent, as the case may be, calculated on a fully
diluted basis, than the percentage beneficially owned by the
Principals and their Related Parties;
(ii) the direct or indirect
sale, transfer, conveyance or other disposition (other than by way
of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or
assets of INSIGHT and its Subsidiaries or the Parent and its
Subsidiaries, in each case, taken as a whole, to any
“person” (as the term is defined in
Section 13(d)(3) of the Exchange Act) other than the
Principals or Related Parties of the Principals;
(iii) the first day on which a
majority of the members of the Board of INSIGHT or the Parent are
not Continuing Directors; or
(iv) INSIGHT or the Parent is
liquidated or dissolved or adopts a plan of liquidation or
dissolution.
(d)
Continuing Directors : shall mean, as of the date of
determination, any member of the Board of INSIGHT or the Parent, as
the case may be, who (i) was a member of such Board on the
date of this Agreement; (ii) was nominated for election or
elected to such Board with the approval of the majority of the
Continuing Directors who were members of such Board at the time of
such nomination or election; or (iii) was nominated by one or
more of the Principals and the Related Parties.
(e)
Expense : includes attorneys’ fees and all other
costs, expenses and obligations paid or incurred in connection with
investigating, defending, being a witness in or participating in
(including on appeal), or preparing to defend, be a witness in or
participate in any Proceeding relating to any Indemnifiable
Event.
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(f)
Indemnifiable Event : any event or occurrence that
takes place either prior to or after the execution of this
Agreement, related to the fact that INDEMNITEE is or was a director
or officer of INSIGHT, or while a director or officer, is or was
serving at the request of INSIGHT as a director, officer, employee,
trustee, agent or fiduciary of another corporation, partnership,
joint venture, employee benefit plan, trust or other enterprise or
by reason of anything done or not done by INDEMNITEE in any such
capacity.
(g)
Parent : InSight Health Services Holdings Corp., a
Delaware corporation and its successors.
(h)
Person : any individual, corporation, limited or
general partnership, joint venture, association, joint-stock
company, trust, unincorporated organization, limited liability
company or government or any agency or political subdivision
thereof.
(i)
Principals : J.W. Childs Associates, L.P., J.W. Childs
Equity Partners II, L.P., The Halifax Group, L.L.C. and Halifax
Capital Partners, L.P. and their Affiliates.
(j)
Public Equity Offering : an offer and sale of capital
stock of INSIGHT or the Parent pursuant to a registration statement
that has been declared effective by the Securities and Exchange
Commission pursuant to the Securities Act of 1933, as amended
(other than a registration statement on Form S-8 or otherwise
relating to equity securities issuable under any employee benefit
plan of INSIGHT).
(k)
Related Parties : shall mean:
(i) any controlling
stockholder, partner, member, 80% (or more) owned Subsidiary, or
immediate family member (in the case of an individual) of any
Principal; or
(ii) any trust, corporation,
partnership or other entity, the beneficiaries, stockholders,
partners, owners or Persons beneficially holding an 80% (or more)
controlling interest of which consist of any one or more Principals
and/or such other Persons referred to in the immediately preceding
clause.
(l)
Proceeding : any threatened, pending or completed
action, suit or proceeding, or any inquiry, hearing or
investigation, whether conducted by INSIGHT or any other party,
that INDEMNITEE in good faith believes might lead to the
institution of any such action, suit or proceeding, whether civil,
criminal, administrative, investigative or other.
(m)
Reviewing Party : shall be any one of the
following: (i) the stockholders of INSIGHT, (ii) a
quorum of the Board consisting of disinterested directors, or
(iii) the special, independent counsel referred to in
Section 2.02 hereof.
(n)
Subsidiary : shall mean with respect to any Person,
any Person a majority of the equity ownership or Voting Securities
of which is at the time owned, directly or indirectly, by such
Person and/or one or more its other Subsidiaries; when used without
reference to any particular Person, Subsidiary means a Subsidiary
of INSIGHT.
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(o)
Voting Securities : shall mean with respect to any
Person, any securities which vote generally in the election of
directors, managers or trustees.
ARTICLE II
INDEMNIFICATION
2.01.
Agreement to Indemnify
.
(a) In the
event INDEMNITEE was, is or becomes a party to or witness or other
participant in, or is threatened to be made a party to or witness
or other participant in, a Proceeding by reason of (or arising in
part out of) an Indemnifiable Event, INSIGHT shall indemnify
INDEMNITEE to the fullest extent permitted by law, as soon as
practicable but in any event no later than thirty (30) days after
written request is presented to INSIGHT, against any and all
Expenses, judgments, fines, penalties and amounts paid in
settlement (including all interest, assessments and other charges
paid or payable in connection with or in respect of such Expenses,
judgments, fines, penalties or amounts paid in settlement) of such
Proceeding and any federal, state, local or foreign taxes imposed
on INDEMNITEE as a result of the actual or deemed receipt of any
payments under this Agreement. INSIGHT shall select counsel
to defend INDEMNITEE (which defense counsel shall be reasonably
satisfactory to INDEMNITEE). Any written request for
indemnification shall include sufficient documentation or
information reasonably available to INDEMNITEE to support
INDEMNITEE’s claim for indemnification. The president
or secretary or other appropriate officer of INSIGHT shall
promptly, upon receipt of INDEMNITEE’s request for
indemnification, advise the Board in writing that INDEMNITEE has
made such request. Notwithstanding anything in this Agreement
to the contrary and except as provided in Section 2.03,
INDEMNITEE shall not be entitled to indemnification pursuant to
this Agreement in connection with any Proceeding initiated by
INDEMNITEE against INSIGHT or any director, officer or key employee
of INSIGHT, unless INSIGHT has joined in or consented to the
initiation of such Proceeding. If so requested by INDEMNITEE,
INSIGHT shall advance (within ten (10) business days
of
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