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  <p style="border:none;font-weight:bold;margin:0in 0in .0001pt;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
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  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WASHINGTON, D.C.</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <h1 align="center" style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K</font></b></h1>
  
  <h1 align="center" style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>
  
  <h2 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">PURSUANT TO SECTION&nbsp;13
  OR 15(d)&nbsp;OF THE</font></b></h2>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">SECURITIES EXCHANGE ACT OF 1934</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date of
  report (Date of earliest event reported) May&nbsp;15, 2008</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">InSight Health Services Holdings Corp.</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as specified in charter)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
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    <h1 align="center" style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></h1>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <h1 style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></h1>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <h1 align="center" style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">333-75984</font></b></h1>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <h1 style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></h1>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <h1 align="center" style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">04-3570028</font></b></h1>
    </td>
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   <tr>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other jurisdiction</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer</font></p>
    </td>
   </tr>
   <tr>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of incorporation)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">file number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification No.)</font></p>
    </td>
   </tr>
  </table>
  
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">26250 Enterprise Court, Suite&nbsp;100, Lake
  Forest, CA 92630</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices) (Zip Code)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(949) 282-6000</font></b></p>
  
  <h3 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Registrant&#146;s telephone number, including area code</font></b></h3>
  
  <h3 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h3>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">N/A</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address, if changed since last report)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></p><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="font-size:10.0pt;margin:0in 0in .0001pt 27.0pt;text-indent:-27.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</font></p><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="font-size:10.0pt;margin:0in 0in .0001pt 27.0pt;text-indent:-27.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="font-size:10.0pt;margin:0in 0in .0001pt 27.0pt;text-indent:-27.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17 CFR 240.14d-2(b))</font></p><p style="margin:0in 0in .0001pt 27.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="font-size:10.0pt;margin:0in 0in .0001pt 27.0pt;text-indent:-27.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
  
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  <p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
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  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\c900132\08-14814-1\task2952831\14814-1-ba.htm',USER='c900132',CD='May 21 23:23 2008' -->
  
  
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  <div style="font-family:Times New Roman;">
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .7in;text-indent:-.7in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1.01</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Entry into a Material
  Definitive Agreement</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;15,
  2008, InSight Health Services Corp. (&#147;InSight&#148;), a wholly owned subsidiary of
  InSight Health Services Holdings Corp. (the &#147;Company&#148;), entered into an
  executive employment agreement with Bernard O&#146;Rourke. Pursuant to such
  agreement Mr.&nbsp;O&#146;Rourke will serve as InSight&#146;s and the Company&#146;s Executive
  Vice President and Chief Operating Officer. The agreement provides that:</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.&nbsp;O&#146;Rourke
  will receive an annual salary of $265,000.</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>He will also be
  eligible to receive an annual bonus of up to 45%, or such percentage approved
  by InSight&#146;s board of directors, of his annual salary based on the Company
  achieving target financial goals approved by InSight&#146;s board of directors. The
  target goals shall be set forth in a budget prepared by Mr.&nbsp;O&#146;Rourke, and
  InSight&#146;s management and approved by InSight&#146;s board of directors, and shall as
  applicable, be set at the plan level applicable to the other executive officers
  of InSight.</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>InSight shall
  purchase a life insurance policy on the life of Mr.&nbsp;O&#146;Rourke and payable
  to such beneficiary or beneficiaries as he may designate in an amount equal to
  three (3)&nbsp;times the amount of his annual salary.</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.&nbsp;O&#146;Rourke
  shall also have the opportunity to participate in InSight&#146;s life insurance,
  medical, health and accident and disability plan or program, pension plan or
  other similar benefit plan and the Company&#146;s stock option plans.</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.&nbsp;O&#146;Rourke
  will receive an automobile allowance of $750 per month.</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company&#146;s
  board of directors expects to award Mr.&nbsp;O&#146;Rourke non-statutory stock
  options to acquire shares of the Company&#146;s common stock. Such options will be
  subject to performance-based vesting, which will occur upon a successful
  refinancing of InSight&#146;s outstanding $315 million of aggregate principal amount
  of senior secured floating rate notes.&nbsp; The exercise price of the option
  will be set on the date of actual grant and calculated as the five (5)&nbsp;day
  average closing price ending on the date of grant (but not less than the
  closing price on the date of grant).</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.&nbsp;O&#146;Rourke&#146;s
  agreement and acknowledgement to certain covenants relating to noncompetition
  and nonsolicitation (relating to the Company&#146;s employees and customers) during
  the term of his employment and continuing for a period of twelve (12)&nbsp;months
  thereafter.</p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The agreement further
  provides that Mr.&nbsp;O&#146;Rourke&#146;s employment will immediately terminate upon
  his death and the executors or administrators of his estate or his heirs or
  legatees (as the case may be) will be entitled to all accrued and unpaid
  compensation up to the date of his death. InSight may upon thirty (30) days
  notice terminate Mr.&nbsp;O&#146;Rourke&#146;s employment if he is unable substantially
  to perform his or her services required by the agreement for three (3)&nbsp;consecutive
  months or shorter periods aggregating three (3)&nbsp;months during any twelve
  (12) month period because of a permanent and total disability. If Mr.&nbsp;O&#146;Rourke&#146;s
  employment is terminated because of a permanent and total disability he will be
  entitled to all accrued and unpaid compensation up to the date of termination.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;O&#146;Rourke&#146;s employment
  and the agreement will terminate and he will be entitled to all accrued and
  unpaid compensation, as well as twelve (12)&nbsp;months of compensation at the
  annual salary rate then in effect upon the occurrence of the following:</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Upon
  InSight&#146;s fifteen (15)&nbsp;days&#146; written notice to Mr.&nbsp;O&#146;Rourke of the
  termination of his employment in its discretion (i.e., without cause).&nbsp;
  The agreement defines cause as the occurrence of one of the following:</p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.&nbsp;O&#146;Rourke
  being convicted or pleading guilty or no contest to any (i)&nbsp;crime or
  offense which is likely to have a material adverse impact on the business
  operations, financial operations or overall business reputation of the Company,
  InSight or any of their subsidiaries, or (ii)&nbsp;any felony offense;</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.&nbsp;O&#146;Rourke
  committing or attempting to commit commit fraud or embezzlement;</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.&nbsp;O&#146;Rourke
  having breached any of his obligations under the employment agreement and
  failed to cure the breach within thirty (30) days following receipt of written
  notice of such breach or Mr.&nbsp;O&#146;Rourke engages in intentional and repeated
  actions specifically and solely for the purpose of causing his termination by
  InSight;</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>InSight or the
  Company, after reasonable investigation, finds that Mr.&nbsp;O&#146;Rourke has
  violated or attempted to violate any material written policies and procedures
  of InSight or the Company, including but not necessarily limited to, policies
  and procedures pertaining to harassment and discrimination;</p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\c900132\08-14814-1\task2952831\14814-1-ba.htm',USER='c900132',CD='May 21 23:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.&nbsp;O&#146;Rourke&#146;s
  failure to obey a specific written direction from InSight&#146;s board of directors
  (unless such specific written instruction represents an illegal act), provided
  that (i)&nbsp;such failure continues for a period of thirty (30) business days
  after receipt of such specific written direction, and (ii)&nbsp;such specific
  written direction includes a statement that the failure to comply therewith
  will be a basis for termination thereunder; or</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any willful act
  or omission on Mr.&nbsp;O&#146;Rourke&#146;s part which is injurious in any material
  respect to the business operations, financial condition or business reputation
  of the Company, InSight or any of their subsidiaries.</p>
  
  <p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If
  Mr.&nbsp;O&#146;Rourke terminates his employment upon the occurrence of good reason
  and continuing for thirty (30) days thereafter. If Mr.&nbsp;O&#146;Rourke fails to
  deliver the notice within such thirty (30) day period it shall constitute an
  agreement by Mr.&nbsp;O&#146;Rourke to such event and eliminate his ability to terminate
  the agreement.&nbsp; The agreement defines good reason as:</p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the relocation by
  InSight, without Mr.&nbsp;O&#146;Rourke&#146;s consent, of his principal place of
  employment to a site that is more than eighty (80) miles from the executive&#146;s
  principal residence in the State of California;</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a reduction by
  InSight, without Mr.&nbsp;O&#146;Rourke&#146;s consent, in his annual salary, duties and
  responsibilities, and title, as they may exist from time to time; or</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a failure by
  InSight to comply with any material provision of the agreement which is not
  cured within thirty (30) days after notice of such noncompliance has been given
  by Mr.&nbsp;O&#146;Rourke, or if such failure is not capable of being cured in such
  time, for which a cure shall not have been diligently initiated by InSight
  within the thirty (30) day period.</p>
  
  <p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If Mr.&nbsp;O&#146;Rourke&#146;s employment
  is terminated by InSight without cause or he terminates his employment for good
  reason within twelve (12)&nbsp;months of a change in control.&nbsp; A change in
  control shall generally be deemed to have occurred if:</p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any person, or
  any two or more persons acting as a group, and all affiliates of such person or
  persons (a &#147;Group&#148;), who prior to such time beneficially owned less than 50% of
  the then outstanding capital stock of InSight or the Company, shall acquire
  shares of InSight&#146;s or the Company&#146;s capital stock in one or more transactions
  or series of transactions, including by merger, and after such transaction or
  transactions such person or group and affiliates beneficially own 50% or more
  of InSight&#146;s or the Company&#146;s then outstanding capital stock, or</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>InSight or the
  Company shall sell all or substantially all of its assets to any Group which,
  immediately prior to the time of such transaction, beneficially owned less than
  50% of the then outstanding capital stock of InSight or the Company.</p>
  
  <p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, if any agreement
  is terminated pursuant to the foregoing (1)&nbsp;&#150; (3), InSight will maintain
  at its expense until the earlier of twelve (12)&nbsp;months after the date of
  termination or commencement of Mr.&nbsp;O&#146;Rourke&#146;s benefits pursuant to
  full-time employment with a new employer under such employer&#146;s standard
  benefits program, all life insurance, medical, health and accident and disability
  plans or programs, in which he was entitled to participate immediately prior to
  the date of termination.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;15, 2008,
  InSight and the Company entered into a separation agreement with Marilyn U.
  MacNiven-Young, the Executive Vice President, General Counsel and Secretary of
  InSight and the Company. The separation agreement provides for, among other
  things:</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Ms.&nbsp;MacNiven-Young&#146;s
  separation from the Company and InSight effective as of October&nbsp;31, 2008;</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the payment of
  her annual salary for the period from November&nbsp;1, 2008 to October&nbsp;31,
  2009;</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>InSight&#146;s
  agreement to provide outplacement counseling services for the six (6)&nbsp;months
  following October&nbsp;31, 2008;</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Ms.&nbsp;MacNiven-Young
  shall be entitled to receive a bonus, if and when determined by the Company&#146;s
  compensation committee, for the fiscal year ending June&nbsp;30, 2008 to which
  she may be eligible;</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company
  agrees to continue to provide to her benefits, such as life insurance, medical,
  dental and health insurance, that she was entitled to receive prior to her
  separation, until the earlier of October&nbsp;31 2009 or she becomes eligible
  for comparable employment benefits as the result of full-time employment with
  another employer;</p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\c900132\08-14814-1\task2952831\14814-1-ba.htm',USER='c900132',CD='May 21 23:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>customary releases
  in favor of the Company by Ms.&nbsp;MacNiven-Young and customary releases in
  favor of Ms.&nbsp;MacNiven-Young by the Company; and</p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>her agreement to
  comply with certain noncompetition and nonsolicitation covenants (relating to
  the Company&#146;s employees and customers) during the twelve-month period ending on
  October&nbsp;31, 2009.</p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ms.&nbsp;MacNiven-Young
  may revoke the separation agreement at any time prior to May&nbsp;23, 2008.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .7in;text-indent:-.7in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1.02</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Termination of Material
  Definitive Agreement</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to Ms.&nbsp;MacNiven-Young&#146;s
  revocation of the separation agreement, the separation agreement will supersede
  her existing Executive Employment Agreement, dated December&nbsp;27, 2001.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .7in;text-indent:-.7in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.02</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Departure of Directors
  or Principal Officers; Election of Directors; Appointment of Principal Officers</font></b></p>
  
  <p style="margin:0in 0in .0001pt .75in;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;15,
  2008, Mr.&nbsp;O&#146;Rourke, age 48, was appointed the Executive President and
  Chief Operating Officer of InSight and the Company. From March&nbsp;28, 2006
  until May&nbsp;15, 2008, Mr.&nbsp;O&#146;Rourke served as the Senior Vice President
  and General Manager, Eastern Division of InSight Health Corp., a subsidiary of
  InSight. From January&nbsp;17, 2005 to March&nbsp;26, 2006, Mr.&nbsp;O&#146;Rourke
  served as the Area Vice President-Enterprise Operations, Northeast of InSight
  Health Corp. From September&nbsp;2004 until joining InSight Health Corp., Mr.&nbsp;O&#146;Rourke
  was a consultant involved with laboratory operations and drug abuse collections.
  From September&nbsp;2002 to September&nbsp;2004, he was a director of
  operations for Radiologix, a provider of medical imaging services.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The material terms of the executive employment
  agreement between Mr.&nbsp;O&#146;Rourke and InSight are described above in Item 1.01.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .7in;text-indent:-.7in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Financial Statements and
  Exhibits</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="57" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:42.75pt;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
    </td>
    <td width="10" valign="bottom" style="padding:0in 0in 0in 0in;width:7.7pt;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="653" valign="bottom" style="padding:0in 0in 0in 0in;width:489.55pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="57" valign="top" style="border:none;padding:0in 0in 0in 0in;width:42.75pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="10" valign="top" style="padding:0in 0in 0in 0in;width:7.7pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="653" valign="top" style="padding:0in 0in 0in 0in;width:489.55pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="57" valign="top" style="padding:0in 0in 0in 0in;width:42.75pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.6</font></p>
    </td>
    <td width="10" valign="top" style="padding:0in 0in 0in 0in;width:7.7pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="653" valign="top" style="padding:0in 0in 0in 0in;width:489.55pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Separation
    Agreement dated May&nbsp;15, 2008, by and among the Company, InSight and
    Marilyn U. MacNiven-Young, filed herewith.</font></p>
    </td>
   </tr>
   <tr>
    <td width="57" valign="top" style="padding:0in 0in 0in 0in;width:42.75pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="10" valign="top" style="padding:0in 0in 0in 0in;width:7.7pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="653" valign="top" style="padding:0in 0in 0in 0in;width:489.55pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="57" valign="top" style="padding:0in 0in 0in 0in;width:42.75pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.17</font></p>
    </td>
    <td width="10" valign="top" style="padding:0in 0in 0in 0in;width:7.7pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="653" valign="top" style="padding:0in 0in 0in 0in;width:489.55pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive
    Employment Agreement dated as of May&nbsp;15, 2008, by and between InSight
    and Bernard O&#146;Rourke filed herewith.</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="3" width="100%" noshade color="#010101" align="center"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\c900132\08-14814-1\task2952831\14814-1-ba.htm',USER='c900132',CD='May 21 23:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
  requirements of the Securities Exchange Act of 1934, the registrant has duly
  caused this report to be signed on its behalf by the undersigned thereunto duly
  authorized.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="70" valign="top" style="padding:0in 0in 0in 0in;width:52.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date:</font></b></p>
    </td>
    <td width="294" valign="top" style="padding:0in 0in 0in 0in;width:220.85pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">May&nbsp;21,
    2008</font></p>
    </td>
    <td width="356" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:266.75pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INSIGHT
    HEALTH SERVICES HOLDINGS CORP.</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="70" valign="top" style="padding:0in 0in 0in 0in;width:52.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="294" valign="top" style="padding:0in 0in 0in 0in;width:220.85pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="356" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:266.75pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="70" valign="top" style="padding:0in 0in 0in 0in;width:52.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="294" valign="top" style="padding:0in 0in 0in 0in;width:220.85pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="356" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:266.75pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="70" valign="top" style="padding:0in 0in 0in 0in;width:52.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="294" valign="top" style="padding:0in 0in 0in 0in;width:220.85pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.15pt;">
    <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">By</font></b>:</p>
    </td>
    <td width="329" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:246.6pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Brian G.
    Drazba</font></p>
    </td>
   </tr>
   <tr>
    <td width="70" valign="top" style="padding:0in 0in 0in 0in;width:52.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="294" valign="top" style="padding:0in 0in 0in 0in;width:220.85pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.15pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="329" valign="top" style="border:none;padding:0in 0in 0in 0in;width:246.6pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Brian G. Drazba</font></p>
    </td>
   </tr>
   <tr>
    <td width="70" valign="top" style="padding:0in 0in 0in 0in;width:52.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="294" valign="top" style="padding:0in 0in 0in 0in;width:220.85pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.15pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="329" valign="top" style="padding:0in 0in 0in 0in;width:246.6pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Vice
    President and</font></p>
    </td>
   </tr>
   <tr>
    <td width="70" valign="top" style="padding:0in 0in 0in 0in;width:52.4pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="294" valign="top" style="padding:0in 0in 0in 0in;width:220.85pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="27" valign="top" style="padding:0in 0in 0in 0in;width:20.15pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="329" valign="top" style="padding:0in 0in 0in 0in;width:246.6pt;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Accounting
    Officer</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  
  <div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="3" width="100%" noshade color="#010101" align="center"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\c900132\08-14814-1\task2952831\14814-1-ba.htm',USER='c900132',CD='May 21 23:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT
  INDEX</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="67" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:50.45pt;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
    </td>
    <td width="13" valign="bottom" style="padding:0in 0in 0in 0in;width:9.4pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="640" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:480.15pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Document Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="67" valign="top" style="border:none;padding:0in 0in 0in 0in;width:50.45pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="13" valign="top" style="padding:0in 0in 0in 0in;width:9.4pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="640" valign="top" style="border:none;padding:0in 0in 0in 0in;width:480.15pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="67" valign="top" style="padding:0in 0in 0in 0in;width:50.45pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.6</font></p>
    </td>
    <td width="13" valign="top" style="padding:0in 0in 0in 0in;width:9.4pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="640" valign="top" style="padding:0in 0in 0in 0in;width:480.15pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Separation
    Agreement dated May&nbsp;15, 2008, by and among the Company, InSight and
    Marilyn U. MacNiven-Young, filed herewith.</font></p>
    </td>
   </tr>
   <tr>
    <td width="67" valign="top" style="padding:0in 0in 0in 0in;width:50.45pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="13" valign="top" style="padding:0in 0in 0in 0in;width:9.4pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="640" valign="top" style="padding:0in 0in 0in 0in;width:480.15pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="67" valign="top" style="padding:0in 0in 0in 0in;width:50.45pt;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.17</font></p>
    </td>
    <td width="13" valign="top" style="padding:0in 0in 0in 0in;width:9.4pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="640" valign="top" style="padding:0in 0in 0in 0in;width:480.15pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive
    Employment Agreement dated as of May&nbsp;15, 2008, by and between InSight
    and Bernard O&#146;Rourke, filed herewith.</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='6',FILE='C:\JMS\c900132\08-14814-1\task2952831\14814-1-ba.htm',USER='c900132',CD='May 21 23:23 2008' -->
  
  
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "a08-14814_18k.htm", "description": "8-K", "secsgml_size_bytes": 57232}]
metadata_filer: {"company-data": {"conformed-name": "INSIGHT HEALTH SERVICES HOLDINGS CORP", "cik": "0001145238", "assigned-sic": "8071", "irs-number": "000000000", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-75984-12", "film-number": "08851515"}, "business-address": {"street1": "26250 ENTERPRISE COURT", "street2": "SUITE 100", "city": "LAKE FOREST", "state": "CA", "zip": "92630", "phone": "949-282-6000"}, "mail-address": {"street1": "26250 ENTERPRISE COURT", "street2": "SUITE 100", "city": "LAKE FOREST", "state": "CA", "zip": "92630"}}
text: SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C.
  FORM 8-K
  CURRENT REPORT
  PURSUANT TO SECTION 13
  OR 15(d) OF THE
  SECURITIES EXCHANGE ACT OF 1934
  Date of
  report (Date of earliest event reported) May 15, 2008
  InSight Health Services Holdings Corp.
  (Exact name of registrant as specified in charter)
  Delaware
  333-75984
  04-3570028
  (State or other jurisdiction
  (Commission
  (I.R.S. Employer
  of incorporation)
  file number)
  Identification No.)
  26250 Enterprise Court, Suite 100, Lake
  Forest, CA 92630
  (Address of principal executive offices) (Zip Code)
  (949) 282-6000
  Registrant's telephone number, including area code
  N/A
  (Former name or former address, if changed since last report)
  Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
  o
  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  o
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  o
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Item 1.01
  Entry into a Material
  Definitive Agreement
  On May 15,
  2008, InSight Health Services Corp. ("InSight"), a wholly owned subsidiary of
  InSight Health Services Holdings Corp. (the "Company"), entered into an
  executive employment agreement with Bernard O'Rourke. Pursuant to such
  agreement Mr. O'Rourke will serve as InSight's and the Company's Executive
  Vice President and Chief Operating Officer. The agreement provides that:
  ·
  Mr. O'Rourke
  will receive an annual salary of $265,000.
  ·
  He will also be
  eligible to receive an annual bonus of up to 45%, or such percentage approved
  by InSight's board of directors, of his annual salary based on the Company
  achieving target financial goals approved by InSight's board of directors. The
  target goals shall be set forth in a budget prepared by Mr. O'Rourke, and
  InSight's management and approved by InSight's board of directors, and shall as
  applicable, be set at the plan level applicable to the other executive officers
  of InSight.
  ·
  InSight shall
  purchase a life insurance policy on the life of Mr. O'Rourke and payable
  to such beneficiary or beneficiaries as he may designate in an amount equal to
  three (3) times the amount of his annual salary.
  ·
  Mr. O'Rourke
  shall also have the opportunity to participate in InSight's life insurance,
  medical, health and accident and disability plan or program, pension plan or
  other similar benefit plan and the Company's stock option plans.
  ·
  Mr. O'Rourke
  will receive an automobile allowance of $750 per month.
  ·
  The Company's
  board of directors expects to award Mr. O'Rourke non-statutory stock
  options to acquire shares of the Company's common stock. Such options will be
  subject to performance-based vesting, which will occur upon a successful
  refinancing of InSight's outstanding $315 million of aggregate principal amount
  of senior secured floating rate notes.  The exercise price of the option
  will be set on the date of actual grant and calculated as the five (5) day
  average closing price ending on the date of grant (but not less than the
  closing price on the date of grant).
  ·
  Mr. O'Rourke's
  agreement and acknowledgement to certain covenants relating to noncompetition
  and nonsolicitation (relating to the Company's employees and customers) during
  the term of his employment and continuing for a period of twelve (12) months
  thereafter.
  The agreement further
  provides that Mr. O'Rourke's employment will immediately terminate upon
  his death and the executors or administrators of his estate or his heirs or
  legatees (as the case may be) will be entitled to all accrued and unpaid
  compensation up to the date of his death. InSight may upon thirty (30) days
  notice terminate Mr. O'Rourke's employment if he is unable substantially
  to perform his or her services required by the agreement for three (3) consecutive
  months or shorter periods aggregating three (3) months during any twelve
  (12) month period because of a permanent and total disability. If Mr. O'Rourke's
  employment is terminated because of a permanent and total disability he will be
  entitled to all accrued and unpaid compensation up to the date of termination.
  Mr. O'Rourke's employment
  and the agreement will terminate and he will be entitled to all accrued and
  unpaid compensation, as well as twelve (12) months of compensation at the
  annual salary rate then in effect upon the occurrence of the following:
  (1)
  Upon
  InSight's fifteen (15) days' written notice to Mr. O'Rourke of the
  termination of his employment in its discretion (i.e., without cause). 
  The agreement defines cause as the occurrence of one of the following:
  ·
  Mr. O'Rourke
  being convicted or pleading guilty or no contest to any (i) crime or
  offense which is likely to have a material adverse impact on the business
  operations, financial operations or overall business reputation of the Company,
  InSight or any of their subsidiaries, or (ii) any felony offense;
  ·
  Mr. O'Rourke
  committing or attempting to commit commit fraud or embezzlement;
  ·
  Mr. O'Rourke
  having breached any of his obligations under the employment agreement and
  failed to cure the breach within thirty (30) days following receipt of written
  notice of such breach or Mr. O'Rourke engages in intentional and repeated
  actions specifically and solely for the purpose of causing his termination by
  InSight;
  ·
  InSight or the
  Company, after reasonable investigation, finds that Mr. O'Rourke has
  violated or attempted to violate any material written policies and procedures
  of InSight or the Company, including but not necessarily limited to, policies
  and procedures pertaining to harassment and discrimination;
  2
  ·
  Mr. O'Rourke's
  failure to obey a specific written direction from InSight's board of directors
  (unless such specific written instruction represents an illegal act), provided
  that (i) such failure continues for a period of thirty (30) business days
  after receipt of such specific written direction, and (ii) such specific
  written direction includes a statement that the failure to comply therewith
  will be a basis for termination thereunder; or
  ·
  any willful act
  or omission on Mr. O'Rourke's part which is injurious in any material
  respect to the business operations, financial condition or business reputation
  of the Company, InSight or any of their subsidiaries.
  (2)
  If
  Mr. O'Rourke terminates his employment upon the occurrence of good reason
  and continuing for thirty (30) days thereafter. If Mr. O'Rourke fails to
  deliver the notice within such thirty (30) day period it shall constitute an
  agreement by Mr. O'Rourke to such event and eliminate his ability to terminate
  the agreement.  The agreement defines good reason as:
  ·
  the relocation by
  InSight, without Mr. O'Rourke's consent, of his principal place of
  employment to a site that is more than eighty (80) miles from the executive's
  principal residence in the State of California;
  ·
  a reduction by
  InSight, without Mr. O'Rourke's consent, in his annual salary, duties and
  responsibilities, and title, as they may exist from time to time; or
  ·
  a failure by
  InSight to comply with any material provision of the agreement which is not
  cured within thirty (30) days after notice of such noncompliance has been given
  by Mr. O'Rourke, or if such failure is not capable of being cured in such
  time, for which a cure shall not have been diligently initiated by InSight
  within the thirty (30) day period.
  (3)
  If Mr. O'Rourke's employment
  is terminated by InSight without cause or he terminates his employment for good
  reason within twelve (12) months of a change in control.  A change in
  control shall generally be deemed to have occurred if:
  ·
  any person, or
  any two or more persons acting as a group, and all affiliates of such person or
  persons (a "Group"), who prior to such time beneficially owned less than 50% of
  the then outstanding capital stock of InSight or the Company, shall acquire
  shares of InSight's or the Company's capital stock in one or more transactions
  or series of transactions, including by merger, and after such transaction or
  transactions such person or group and affiliates beneficially own 50% or more
  of InSight's or the Company's then outstanding capital stock, or
  ·
  InSight or the
  Company shall sell all or substantially all of its assets to any Group which,
  immediately prior to the time of such transaction, beneficially owned less than
  50% of the then outstanding capital stock of InSight or the Company.
  In addition, if any agreement
  is terminated pursuant to the foregoing (1) – (3), InSight will maintain
  at its expense until the earlier of twelve (12) months after the date of
  termination or commencement of Mr. O'Rourke's benefits pursuant to
  full-time employment with a new employer under such employer's standard
  benefits program, all life insurance, medical, health and accident and disability
  plans or programs, in which he was entitled to participate immediately prior to
  the date of termination.
  On May 15, 2008,
  InSight and the Company entered into a separation agreement with Marilyn U.
  MacNiven-Young, the Executive Vice President, General Counsel and Secretary of
  InSight and the Company. The separation agreement provides for, among other
  things:
  ·
  Ms. MacNiven-Young's
  separation from the Company and InSight effective as of October 31, 2008;
  ·
  the payment of
  her annual salary for the period from November 1, 2008 to October 31,
  2009;
  ·
  InSight's
  agreement to provide outplacement counseling services for the six (6) months
  following October 31, 2008;
  ·
  Ms. MacNiven-Young
  shall be entitled to receive a bonus, if and when determined by the Company's
  compensation committee, for the fiscal year ending June 30, 2008 to which
  she may be eligible;
  ·
  the Company
  agrees to continue to provide to her benefits, such as life insurance, medical,
  dental and health insurance, that she was entitled to receive prior to her
  separation, until the earlier of October 31 2009 or she becomes eligible
  for comparable employment benefits as the result of full-time employment with
  another employer;
  3
  ·
  customary releases
  in favor of the Company by Ms. MacNiven-Young and customary releases in
  favor of Ms. MacNiven-Young by the Company; and
  ·
  her agreement to
  comply with certain noncompetition and nonsolicitation covenants (relating to
  the Company's employees and customers) during the twelve-month period ending on
  October 31, 2009.
  Ms. MacNiven-Young
  may revoke the separation agreement at any time prior to May 23, 2008.
  Item 1.02
  Termination of Material
  Definitive Agreement
  Subject to Ms. MacNiven-Young's
  revocation of the separation agreement, the separation agreement will supersede
  her existing Executive Employment Agreement, dated December 27, 2001.
  Item 5.02
  Departure of Directors
  or Principal Officers; Election of Directors; Appointment of Principal Officers
  On May 15,
  2008, Mr. O'Rourke, age 48, was appointed the Executive President and
  Chief Operating Officer of InSight and the Company. From March 28, 2006
  until May 15, 2008, Mr. O'Rourke served as the Senior Vice President
  and General Manager, Eastern Division of InSight Health Corp., a subsidiary of
  InSight. From January 17, 2005 to March 26, 2006, Mr. O'Rourke
  served as the Area Vice President-Enterprise Operations, Northeast of InSight
  Health Corp. From September 2004 until joining InSight Health Corp., Mr. O'Rourke
  was a consultant involved with laboratory operations and drug abuse collections.
  From September 2002 to September 2004, he was a director of
  operations for Radiologix, a provider of medical imaging services.
  The material terms of the executive employment
  agreement between Mr. O'Rourke and InSight are described above in Item 1.01.
  Item 9.01
  Financial Statements and
  Exhibits
  Exhibit No.
  10.6
  Separation
    Agreement dated May 15, 2008, by and among the Company, InSight and
    Marilyn U. MacNiven-Young, filed herewith.
  10.17
  Executive
    Employment Agreement dated as of May 15, 2008, by and between InSight
    and Bernard O'Rourke filed herewith.
  4
  SIGNATURES
  Pursuant to the
  requirements of the Securities Exchange Act of 1934, the registrant has duly
  caused this report to be signed on its behalf by the undersigned thereunto duly
  authorized.
  Date:
  May 21,
    2008
  INSIGHT
    HEALTH SERVICES HOLDINGS CORP.
  By
  :
  /s/ Brian G.
    Drazba
  Brian G. Drazba
  Senior Vice
    President and
  Chief Accounting
    Officer
  5
  EXHIBIT
  INDEX
  Exhibit No.
  Document Description
  10.6
  Separation
    Agreement dated May 15, 2008, by and among the Company, InSight and
    Marilyn U. MacNiven-Young, filed herewith.
  10.17
  Executive
    Employment Agreement dated as of May 15, 2008, by and between InSight
    and Bernard O'Rourke, filed herewith.
  6