-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MVuD4EJBXXy/SdZLy8qzkK6yor4nS58JnsXFxkhDSI0dSd2P6AAMXOTDxBNOR5O3 Gv7ypiOYfcShfuHwvbdtUA== 0000849145-96-000001.txt : 19960201 0000849145-96-000001.hdr.sgml : 19960201 ACCESSION NUMBER: 0000849145-96-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19951031 ITEM INFORMATION: Other events FILED AS OF DATE: 19960131 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDCROSS INC CENTRAL INDEX KEY: 0000849145 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 592291344 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17973 FILM NUMBER: 96509279 BUSINESS ADDRESS: STREET 1: 3227 BENNET ST NORTH CITY: ST PETERSBURG STATE: FL ZIP: 33713 BUSINESS PHONE: 8135211793 MAIL ADDRESS: STREET 1: 3227 BENNET STREET NORTH CITY: ST PETERSBURG STATE: FL ZIP: 33713 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 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) October 31, 1995 Medcross, Inc. (Exact name of registrant as specified in its charter) Florida 0-17973 59-2291344 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 3227 Bennet Street North, St. Petersburg, Florida 33713 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code (813) 521-1793 (Former name or former address, if changed since last report.) Item 5. Other Events The Company entered into a consulting agreement for the three month period ended October 23, 1995 with Bijan Taghavi, formerly an officer and director of the Company. Pursuant to such agreement, Mr. Taghavi was engaged to provide such consulting services as requested by the Company in exchange for compensation at the rate of $5,208 per month. Mr. Taghavi's consulting agreement contains certain mutual release, non-competition, and confidentiality provisions. The Company entered into a consulting agreement with Timothy R. Barnes, formerly an officer of the Company (the "Barnes Agreement") effective as of August 6, 1995 pursuant to which Mr. Barnes has agreed to provide consulting services as requested by the Company's President. Such agreement is for a term expiring February 6, 1996 and provides for the issuance to Mr. Barnes of warrants to purchase 36,858 shares of Common Stock exercisable at a purchase price of $1.00 per share. The Barnes Agreement also contains standard non- competition and confidentiality provisions. The Company has also entered into two consulting agreements with Jason H. Pollak, the initial term of one of which is to expire on January 31, 1996 and the second of such agreements commences thereafter for a period of three years (the "Pollak Agreement") pursuant to which Mr. Pollak has agreed to provide investor and public relations services. Pursuant to the terms of the first of the Pollak Agreements, Mr. Pollak has received 50,000 shares of Common Stock. The second of the Pollak Agreements provides that the Company shall issue to Mr. Pollak an option to purchase up to 150,000 shares of Common Stock. Options to purchase 50,000 shares are exercisable each year commencing February 1, 1996 at prices per share of $1.50, $2.50, and $3.50, respectively. The shares of Common Stock subject to the Barnes Agreement and the first of the Pollak Agreements have been included in registration statements on Form S- 8 recently filed by the Company with the Commission (Registration Nos. 33- 63751 and 33-63749, respectively) and the Company has agreed to register the securities issuable in accordance with the second of the Pollak Agreements as soon as practicable. On December 5, 1995, Medcross Imaging, Ltd., a subsidiary of the Company, entered into MR Service Agreements dated October 1, 1995, with two major customers, South Bay Hospital and Edward White Hospital relating to the provisions of mobile magnetic resonance imaging service to such hospitals. The agreements are substantially similar to prior agreements with such customers with a change in the minimum arrangement whereas the hospitals are billed on a monthly basis for the greater of the minimum charges or the charges for the actual patients treated. The agreements respectively provide for a reduction in per patient charges of approximately 30% compared to the prior agreements, and that both of the agreements are for seventeen month periods from October 1, 1995 whereas the prior agreements were to expire on February 1, 1996. The agreements are both renewable automatically for additional one-year terms unless written notice is given at least 90 days prior to the end of the term. The above descriptions of the MR Service Agreements entered into by the Company's subsidiary are not complete. Reference is made to the respective agreements executed by Medcross Imaging, Ltd., copies of which are filed as exhibits to this report and incorporated herein by reference. Item 7. Exhibits (10)(a) MR Service Agreement effective October 1, 1995 by and between Medcross Imaging, Ltd. and South Bay Hospital. (b) MR Service Agreement effective October 1, 1995 by and between Medcross Imaging, Ltd. and Edward White Hospital. (c) Consulting Agreement effective October 18, 1995 by and among Medcross, Inc., Kalo Acquisitions, LLC, and Jason H. Pollak. (d) Consulting Agreement effective September 1, 1995 by and between Medcross, Inc., Kalo Acquisitions, LLC, and Jason H. Pollak. (e) Consulting Agreement effective August 5, 1995 by and between Medcross, Inc. and Timothy R. Barnes. (1) Incorporated by reference to the Company's registration statement on Form S-8 dated October 27, 1995 (File Number 0-63749). (2) Incorporated by reference to the Company's registration statement on Form S-8 dated October 27, 1995 (File Number 0-63751). 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 hereunto duly authorized. MEDCROSS, INC. By: /S/ Henry Y.L. Toh Henry Y.L. Toh President, CEO, Acting CFO Date: 1/31/96
EX-10.A 2 MR SERVICE AGREEMENT THIS MR SERVICE AGREEMENT ("Agreement") by and between SOUTH BAY HOSPITAL, a Florida corporation (hereinafter called the "Hospital"), and MEDCROSS IMAGING, LTD., a Florida limited partnership (hereinafter called the "Partnership"). Background Statements: I. The Partnership was formed for the purpose of providing mobile magnetic resonance imaging ("MR") service to hospitals. II. The Hospital has agreed to receive from the Partnership and the Partnership has agreed to provide to the Hospital mobile MR service upon the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, together with other valuable consideration, the adequacy and sufficiency of which is hereby acknowledged and intending to be legally bound hereby, the parties agree as follows: 1. Background Statements. The background statements set forth above are true and correct and are incorporated herein by reference. 2. Mobile MR Service. (a) Upon the terms and conditions set forth herein, the Partnership shall provide mobile MR service to the Hospital and the Hospital shall receive from the Partnership and pay the Partnership for such mobile MR service in accordance with the terms hereof. Service hereunder shall be provided by the Partnership with a 0.5 Tesla magnetic resonance imaging system (the "Imager") which is mounted in a mobile van. The Imager and the mobile van are hereinafter referred to as the "Mobile Unit". (b) The Hospital shall not obtain MR service other than from the Partnership during the term of this Agreement. 3. Representations. (a) In order to induce the Partnership to enter into this Agreement, the Hospital represents and warrants to the Partnership that the Hospital has received all necessary corporate authority to enter into and perform its obligations hereunder and the covenants and agreements of the Hospital set forth herein do not violate or conflict with any policy of liability insurance that the Hospital may have. (b) In order to induce the Hospital to enter into this Agreement, the Partnership represents and warrants to the Hospital that the Partnership has all necessary partnership authority to enter into and perform its obligations hereunder. 4. Covenants and Responsibilities of the Partnership. The Partnership makes the following covenants to the Hospital and undertakes the following responsibilities: (a) it will provide the Mobile Unit at the Hospital at the designated time and place in accordance with the service schedule set forth herein; (b) it will provide one qualified technician who will perform MR scans in accordance with the information provided by the Hospital; (c) it will procure at its expense and, at all times during which service is provided to the Hospital hereunder, keep in full force and effect a maintenance contract for the maintenance of the Imager; (d) it will procure and, at all times during which service is provided to the Hospital hereunder, keep in full force and effect the following insurance coverage: (i) casualty insurance insuring the Mobile Unit; (ii) such insurance with respect to the performance of its technicians provided with the Mobile Unit as the Partnership shall deem necessary; (iii) excess liability insurance coverage to a limit of not less than $1,000,0000; and (e) it will provide a technician along with the Mobile Unit on each scheduled day of service, which technician shall be sufficiently trained to operate the Imager. The Hospital agrees that the Partnership is not required to and shall not provide professional interpretation services; (f) it will, as of the end of each day of service at the Hospital, provide to the Hospital hard copy images of each scan performed during such day of service; and (g) it shall have the exclusive right and responsibility to schedule patients for MRI scans subject to paragraph 7(b). (h) it will procure at its expense, Magnavist contrast media used for MRI patients. 5. Covenants and Responsibilities of Hospital. The Hospital makes the following covenants to the Partnership and undertakes the following responsibilities: (a) it has and will, at its expense, procure and maintain during the term of this Agreement, all necessary approvals, licenses, consents, or waivers from any federal, state, regional, or local health planning agency or other governmental body for the performance of MR scans on patients at the Hospital utilizing the Mobile Unit; (b) it will prepare, and keep available at all times during the scheduled service during the term hereof, the parking site selected for the Mobile Unit as provided in paragraph 6(b) and will provide and keep available at all times during which services are provided hereunder the ancillary utilities (including, but not limited to, electrical power and connections for at least two telephone lines to handle calls to and from the Mobile Unit) in accordance with the specifications provided by the Imager and van manufacturers and by the Partnership. The Hospital agrees that, during the term of this Agreement, the Partnership may park the Mobile Unit at the parking site located at the Hospital and utilize the Hospital's utilities while the Mobile Unit is not otherwise in use; (c) it will implement policies and procedures: (i) for the delivery and retrieval of patients to and from the Mobile Unit; (ii) for the care of patients during such delivery to and retrieval from the Mobile Unit and at all times that patients are located in the Mobile Unit; and, (iii) in order to comply with all governmental laws, ordinances, rules, and regulations applicable to building, equipment, and safety standards other than those applicable to the Mobile Unit itself; (d) it will provide a registered nurse or a licensed practical nurse who shall be present during the delivery and retrieval of patients and the performance of MR scans on any patients being cared for in the intensive care or cardiac care unit of the Hospital; (e) it will keep accurate records for the identification and care of patients while in the Mobile Unit and with regard to each scan performed utilizing the Imager while at the Hospital and shall insure that the patients execute informed consents prior to the performing of any services under this Agreement by the Partnership; provided, however, that the Partnership shall have the opportunity to review the consent form to be used by the Hospital and the Partnership's reasonable request for modification of such form shall be complied with by the Hospital; (f) it will deliver and retrieve patients, along with the patients' medical records, to and from the Mobile Unit as and when they are scheduled using its personnel; (g) it will be responsible for providing such personnel, procedures, equipment, and facilities as shall fully comply with all Department of Labor and Industry regulations together with all other applicable requirements for ingress and egress to and from the Hospital and the Mobile Unit; (h) it will be responsible for providing a licensed physician together with such other medical personnel as may be required to assist the physician, who, during the period when the Hospital's patients are in the Mobile Unit, perform or cause to be performed all tasks of general supervision, diagnosis, and patient care in accordance with all applicable professional standards, the Hospital's bylaws and medical staff bylaws, contracts and procedures, and all other regulations, restrictions, and other requirements of the Hospital. The physician provided by the Hospital shall be solely responsible for reading and/or determining the results of the scanning service. Such physician shall be responsible for communicating those results to the referring physician, appropriate members of the Hospital's staff, and to the patients. Provided, however, that the supervising physician or his or her designee shall be present to administer all intravenous contrast media and to attend the patient until such time as the scanning service is completed and the patient is removed from the Mobile Unit. Nothing in this Agreement or in the actual operation of the Mobile Unit shall impair or impede or shall limit the physician's medical judgement exercised for or on behalf of such patient; (i) it will procure and, at all times during which service is provided to the Hospital hereunder, keep in full force and effect liability insurance coverage with respect to the performance of MR scans utilizing the Mobile Unit with a limit of not less than $1,000,000; (j) it will provide all consumable medical supplies used in operating the Imager, including, but not limited to, single emulsion film, and magnetic storage media; and (k) the Hospital recognizes that the Partnership's entrance into this Agreement is induced in part by the covenants and assurances made by the Hospital that the Hospital will not hire the Partnership's employees since irrevocable harm and damage will be done to the Partnership in the event that the Hospital hires any employee of the Partnership. Therefore, the Hospital agrees that during the term of this Agreement, and for a period of one year thereafter, the Hospital shall not, directly or indirectly, hire, contract with, or be in any way associated with any employee or former employee of the Partnership. In addition, the Hospital agrees that the hiring of any such employee or any attempt to induce any such employee to terminate his or her employment with the Partnership shall be a breach of this restrictive covenant and shall entitle the Partnership to injunctive relief without the necessity of bond, all in addition to any other rights to which the Partnership is entitled and, provided further, that the Hospital agrees that the Partnership's employees may be provided by Medcross, Inc., a Florida corporation ("Medcross"), pursuant to a Management Agreement between the Partnership and Medcross and, in that case, the Medcross employees shall be considered to be employees of the Partnership for purposes of this restrictive covenant. 6. Joint Responsibilities and Covenants of the Partnership and the Hospital. The following are joint responsibilities and covenants of the Partnership and the Hospital: (a) to cooperate and share information, to execute all documents reasonably required, and to make their personnel available as may be reasonably required to assist each other in obtaining such state, local, and other governmental approvals as may be required (i) for the operation of the Mobile Unit, (ii) to qualify for cost reimbursements, and (iii) to obtain such approvals as may be necessary in order that the MR services provided shall be reimbursable by third- party payors; (b) mutually agree upon an appropriate parking location on the current premises of the Hospital for the operation of the Mobile Unit. The Partnership shall have final approval of the parking site, which approval shall not be unreasonably withheld; (c) allow each other reasonable access to all facilities, personnel, and records as may be necessary for each to keep books of account, prepare reports to governmental agencies, submit claims for reimbursement, and the like. The Partnership may from time to time specify the information that such records shall contain and may obtain copies or summaries of such records. All information obtained shall be kept confidential to the extent that it may involve records or reports of any patient treatment; and (d) to provide to each other certificates of all insurance carried by them pertaining to the operations contemplated herein. 7. Scheduling. (a) Subject to the provisions of paragraph 7(b), the Partnership shall provide service to the Hospital on the days set forth in the service schedule attached hereto as Exhibit "A". Service shall commence on the first scheduled day of service on or after the Commencement Date. (b) During each full day of service, the Mobile Unit shall be available for the performance of scans from 7:00 a.m. to 6:00 p.m. The first patient during each day of service shall be scheduled before 9:00 a.m. and patients shall be scheduled on a consecutive basis thereafter. The Mobile Unit and the technician may be removed from the Hospital at any time after the scan on the last scheduled patient has been completed, even if it is before 6:00 p.m. The Partnership shall not be obligated to commence any scans after 5:00 p.m. However, if all scheduled patients cannot be completed before 6:00 p.m., the Partnership may, in its discretion, make the Mobile Unit available for scans after 6:00 p.m. In the event that any scheduled day of service falls on any one of the following holidays, the Hospital shall have the option of electing not to receive service on that day: New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, Christmas Eve, and Christmas Day. In the event that the Hospital elects not to receive service during any such holiday, upon request of the Hospital, the Partnership will use its best efforts to reschedule the Mobile Unit during the next available unscheduled day, which may be a weekend or a holiday. (c) The Hospital understands that the Imager is a complex mechanical and electronic device, that there may be times that it will break down and that it will break down and that it is impossible to predict when that will occur. The Imager must also undergo periodic maintenance. Anything to the contrary set forth herein notwithstanding, in no event shall the Partnership be liable to the Hospital as a result of the unavailability of the Mobile Unit for any reason. 8. Charges for MR Service. (a) The following definitions apply for purposes of this paragraph 8: (i) "Standard Charge" means $350 per MR scan completed utilizing the Mobile Unit while located at the Hospital. (ii) "Minimum Monthly Charge" means the number of days during the month the Mobile Unit is scheduled and available for service multiplied by thirteen (13) scans per day, and further multiplied by the Standard Charge. (iii) "Incomplete Scan Charge" means $100 per MR scan that cannot be completed due to reasons such as claustrophobia, etc., or whenever a radiologist requests the patient return on a separate day from the day the original scan was performed to scan additional sequences on the same anatomical area. (b) The Partnership will provide the Hospital with an invoice at the end of each month for the greater of: (i) the Standard Charge for each MR scan completed plus any Incomplete Scan charges; or, (ii) the Monthly Minimum Charge plus any Incomplete Scan Charges. (c) The Partnership shall mail a statement of account to the Hospital as of the first day of each month. If any invoices are past due as of the statement date, the Hospital shall pay late charges in an amount equal to 1-1/2% per month of the amount of each past due invoice. In addition to any and all remedies available to the Partnership for defaults hereunder by the Hospital, in the event that there are any invoices to the Hospital from the Partnership that are 15 days or more past due the Partnership may require the Hospital to pay in cash not less than five days prior to a scheduled day of service for each scan scheduled for that day. (d) The Hospital's obligation to pay the charges set forth herein to the Partnership is absolute and unconditional at the time that MR scans are performed utilizing the Mobile Unit while located at the Hospital. The obligation of the Hospital to pay the charges set forth herein to the Partnership is distinct and independent from the payment to the Hospital by or on account of the patients scheduled by the Hospital for MR scans. The collection and discharge of such patient accounts are the sole responsibility of the Hospital and not of the Partnership. 9. Indemnification. (a) The Hospital shall indemnify and hold harmless the Partnership, its partners (exclusive of the Hospital in the event that the Hospital is a partner of the Partnership), its employees, and the directors, officers, and employees of the general partner of the Partnership (each of the foregoing is herein referred to as an "Indemnitee") from and against any and all Loss arising in connection with or as a result of (i) any breach hereof by the Hospital; (ii) the presence of the Mobile Unit at the designated parking space, (iii) the movement of any person to and from or within the Mobile Unit, (iv) any failure to diagnose conditions in any patient, unless due to the negligence of the Partnership or its employees, or (v) any other matter involving professional malpractice or negligence on the part of the Hospital or its employees. (b) The Partnership shall indemnify and hold harmless the Hospital and its directors and trustees, officers, and employees from and against any and all Loss arising in connection with or as a result of (i) any breach thereof by the Partnership; (ii) any matter involving negligence on the part of the Partnership or its employees; and (iii) any injury to any person or damage to property occurring while the Mobile Unit is in transit. (c) If any event shall give rise to an assertion by a party hereto that the other party should indemnify it, the party claiming indemnification shall promptly give written notice to the other, setting forth the basis of the claim. The parties shall cooperate to ensure that any lawsuit or claim is answered in a timely fashion. The indemnifying party may appoint counsel to defend the matter, although such counsel shall be acceptable to both parties. The indemnified party may, however, at its discretion, participate in the defense of such matter and may be represented by its own counsel, and such shall not be deemed to waive its right to indemnification for expenses of attorneys. The indemnified party may not settle, compromise, or pay any matter without the express, prior consent of the indemnifying party. The right to obtain indemnification hereunder shall survive any termination of this Agreement and shall not be subject to any right of set-off or counterclaim. (d) For the purposes of this paragraph 9, the term "Loss" shall mean any loss, damage, liability, cost, and expense including, without limitation, any interest, fine, court costs, reasonable investigation costs, penalties, and attorneys' and expert witness fees (including such fee in all trials, appeals, and administrative proceedings), disbursements, and expenses. (e) Each party's obligations to indemnify the other party hereunder is independent of and not affected by the availability or non-availability of any insurance coverage or payment under any policy of insurance, from any trust fund, or otherwise nor shall the obligation of the party to indemnify the other party hereunder be affected by any change in insurance, reduction in coverage, change in policy terms, creation of trust funds, or any other cause. 10. Managing Agent. The Hospital acknowledges that the Partnership has contracted with Medcross to act as its management agent. The Hospital agrees to cooperate fully with Medcross and its employees and to accept the requests and directions of Medcross as representing those of the Partnership. 11. Default and Termination. (a) It shall be an event of default by the Hospital if any one of the following events shall happen: (i) the Hospital shall fail to pay to the Partnership the charges provided for in paragraph 8 when due; (ii) the Hospital shall fail to keep, observe, or perform any other covenant, agreement, term, or provision of this Agreement to be kept, observed, or performed by the Hospital and any such failure shall continue for a period of 30 days after notice thereof is given by the Partnership to the Hospital; provided, however, if any such failure may, in the opinion of the Partnership, adversely affect the safety of patients, or constitutes a violation of applicable law, rule, or regulation of a governmental authority, such default shall be cured immediately by the Hospital. (iii) the Hospital shall apply for or consent to the appointment of a receiver, trustee, or liquidator of the Hospital of all or a substantial part of its assets, file a voluntary petition in bankruptcy, or admit in writing its inability to pay its debts as they come due, make a general assignment for the benefit of creditors, file a petition of an answer seeking reorganization or arrangement with creditors or to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against the Hospital in any bankruptcy, reorganization, or insolvency proceeding, or the entry of an order, judgement, or decree by a court of competent jurisdiction, on the application of a creditor, adjudicating the Hospital a bankrupt or insolvent or approving a petition seeking reorganization of the Hospital or appointing a receiver, trustee, or liquidator of the Hospital or if all or a substantial part of its assets and such order, judgement, or decree shall continue unstayed and in effect for a period of 60 consecutive days. (b) In the event of an occurrence of an event of default by the Hospital, the Partnership shall have the right to terminate this Agreement upon ten (10) days' written notice to the Hospital given at any time after the period of grace applicable thereto, and thereupon this Agreement shall terminate upon the expiration of such ten (10) day period. Provided, however, (i) if the default is for failure of the Hospital to pay when due the charges provided for in paragraph 8, the Partnership may terminate this Agreement effective immediately upon the delivery to the Hospital of written notice of termination, and (ii) if any default may adversely affect the safety of patients, or constitutes a violation of applicable law, rule, or regulation of a governmental authority, the Partnership may immediately suspend service hereunder without prejudice to its termination rights hereunder. (c) It shall be an event of default by the Partnership if any one of the following events shall happen: (i) the Partnership shall fail to keep, observe, or perform any covenant, agreement, term, or provision of this Agreement to be kept, observed, or performed by the Partnership and any such failure shall continue for a period of 30 days after written notice thereof given by the Hospital to the Partnership; (ii) the Partnership shall apply for or consent to the appointment of a receiver, trustee, or liquidator of the Partnership or of all or a substantial part of its assets, file a voluntary petition in bankruptcy, or admit in writing its inability to pay its debts as they come due, make a general assignment for the benefit of creditors, file a petition or an answer seeking reorganization or arrangement with creditors or to take advantage of any insolvency law, or file an answer admitting the material allegations of a petition filed against the Partnership in any bankruptcy, reorganization, or insolvency proceeding, or the entry of an order, judgement, or decree by a court of competent jurisdiction, on the application of a creditor, adjudicating the Partnership a bankrupt or insolvent or approving a petition seeking reorganization of the Partnership or appointing a receiver, trustee, or liquidator of the Partnership or of all or a substantial part of its assets and such order, judgement, or decree shall continue unstayed and in effect for a period of 60 consecutive days. (d) In the event of an occurrence of an event of default by the Partnership, the Hospital shall have the right to terminate this Agreement upon 10 days written notice to the Partnership given at any time after the period of grace applicable thereto, and thereupon this Agreement shall terminate upon the expiration of such 10 day period. (e) The termination of this Agreement under the provision of paragraphs 11(b) and 11(d) shall not affect the rights of the Hospital or the Partnership with respect to any damages they have suffered as the result of any breach of this Agreement, nor shall it affect the rights of the Hospital or the Partnership with respect to liability or claims accrued, or arising out of events occurring, prior to the date of termination. Neither the right of termination nor the right to bring an action for damages nor any other remedy available to either party hereunder shall be exclusive of any other remedy given hereunder or now or hereafter existing at law or in equity. 12. Term. This Agreement shall continue for a period of seventeen (17) months beginning October 1, 1995 (the "Commencement Date") and shall be renewed automatically for additional one-year terms unless either party notifies the other party in writing at least ninety (90) days prior to the end of the then current term of its intent not to renew. 13. Force Majeure. (a) Anything to the contrary set forth herein notwithstanding, in the event that the Partnership is rendered unable, wholly or in part, by force majeure (as hereinafter defined) to carry out its obligations under this Agreement, then it shall give to the Hospital prompt notice of the force majeure with reasonably full particulars; thereupon, the obligations of the Partnership, so far as they are affected by the force majeure, shall be suspended. The Partnership shall use all reasonable diligence to resume its obligations as quickly as possible to the extent the same is within its reasonable control. (b) The term "force majeure" shall mean an act of God, strike, lockout, or other industrial disturbance, act of the public enemy, war, blockade, public riot, lightning, fire, storm, flood, explosion, governmental restraint, accident, unavailability of equipment due to maintenance, whether preventative or otherwise, delay in delivery of equipment, inoperability of equipment, adverse weather conditions, and any other cause whether of the kind specifically enumerated above or otherwise which precludes the Partnership's performance hereunder and is not reasonably within the control of the Partnership. 14. Miscellaneous. (a) It is expressly understood that the systems, methods, procedures, written materials, and controls employed by the Partnership in the performance of this Agreement are proprietary in nature, shall remain the property of the Partnership, and shall not at any time be utilized, distributed, copied, or otherwise employed or acquired by the Hospital unless approved by the Partnership. (b) Notwithstanding the place where this Agreement may be executed by either of the parties, this Agreement, the rights and obligations of the parties, and any claims and disputes relating thereto shall be subject to and governed by the laws of the State of Florida as applied to agreements among Florida residents to be entered into and performed entirely within the State of Florida. Such laws shall govern all aspects of this Agreement. (c) This Agreement represents the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, agreements, and representations. No amendment of this Agreement shall be binding or of any effect unless in writing duly signed by both parties hereto. (d) This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement may be assigned by either party to a successor in interest to all or substantially all of the assets or business of the assigning party who shall promptly notify the other party of the assignment of this Agreement. Any other assignment by a party (except a collateral assignment by the Partnership to a financial institution or lessor which makes available funds for the Mobile Unit) shall require the prior written consent of either party, which consent shall not be unreasonably withheld. (e) No waiver by any party hereto of any default of or breach by any other party under this Agreement shall operate as a waiver of any future default or breach, whether of like or different character or nature. (f) Any notice required or permitted by this Agreement shall be in writing and shall be deemed given at the time it is deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested, addressed to the party to whom it is to be given as follows: HOSPITAL: South Bay Hospital 4016 State Road 674 Sun City Center, FL 33570 COMPANY: Medcross Imaging, Ltd. 3227 Bennet Street North St. Petersburg, FL 33713 ATTN: Doree' Michon Either party may change its address to which notices shall be sent by a notice similarly sent. (g) To the extent required by law, the Partnership hereby agrees that for a period of four years after this Agreement terminates, it shall make available upon written request of the Secretary of Health and Human Services or upon request of the Controller General or any duly authorized representative thereof, this Agreement and the books, documents, and records that may be necessary to certify the nature and extent of the costs related to this Agreement with the Hospital and, furthermore, the Partnership agrees that, if any of the value or cost of any work is provided pursuant to a subcontract with a value of $10,000 or more, the Partnership shall require that any such subcontractor sign a similar agreement to make its books and records available for such four-year period of time. (h) In the event of any litigation between the parties arising out of or relating to this Agreement, the prevailing party shall be entitled to recover all of its costs and expenses including, but not limited to, reasonable attorneys' fees, including attorneys' fees in all trials, appeals, and administrative proceedings. The parties hereto have executed this Agreement as of the 1st day of October, 1995. MEDCROSS IMAGING, LTD., a Florida limited partnership BY: MEDCROSS, INC., General Partner By: /s/ Doree Michon As Vice President - Operations SOUTH BAY HOSPITAL, a Florida corporation By: /s/ Joseph Mulley As Administrator "HOSPITAL" EXHIBIT "A" Schedule of Service DAY TIME Tuesday 7:00 a.m. - 6:00 p.m. Thursday ----- 1 See paragraph 7 regarding the terms of scheduled days of service. 2 Thursday service is provided on an "as-needed" basis by the Partnership. The Partnership, therefore, will not consider Thursday as a day of service for the purpose of calculating the Daily Minimum Charge.
EX-10.B 3 MR SERVICE AGREEMENT THIS MR SERVICE AGREEMENT ("Agreement") by and between EDWARD WHITE HOSPITAL, a Florida corporation (hereinafter called the "Hospital"), and MEDCROSS IMAGING, LTD., a Florida limited partnership (hereinafter called the "Partnership"). Background Statements: I. The Partnership was formed for the purpose of providing mobile magnetic resonance imaging ("MR") service to hospitals. II. The Hospital has agreed to receive from the Partnership and the Partnership has agreed to provide to the Hospital mobile MR service upon the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, together with other valuable consideration, the adequacy and sufficiency of which is hereby acknowledged and intending to be legally bound hereby, the parties agree as follows: 1. Background Statements. The background statements set forth above are true and correct and are incorporated herein by reference. 2. Mobile MR Service. (a) Upon the terms and conditions set forth herein, the Partnership shall provide mobile MR service to the Hospital and the Hospital shall receive from the Partnership and pay the Partnership for such mobile MR service in accordance with the terms hereof. Service hereunder shall be provided by the Partnership with a 0.5 Tesla magnetic resonance imaging system (the "Imager") which is mounted in a mobile van. The Imager and the mobile van are hereinafter referred to as the "Mobile Unit". (b) The Hospital shall not obtain MR service other than from the Partnership during the term of this Agreement. 3. Representations. (a) In order to induce the Partnership to enter into this Agreement, the Hospital represents and warrants to the Partnership that the Hospital has received all necessary corporate authority to enter into and perform its obligations hereunder and the covenants and agreements of the Hospital set forth herein do not violate or conflict with any policy of liability insurance that the Hospital may have. (b) In order to induce the Hospital to enter into this Agreement, the Partnership represents and warrants to the Hospital that the Partnership has all necessary partnership authority to enter into and perform its obligations hereunder. 4. Covenants and Responsibilities of the Partnership. The Partnership makes the following covenants to the Hospital and undertakes the following responsibilities: (a) it will provide the Mobile Unit at the Hospital at the designated time and place in accordance with the service schedule set forth herein; (b) it will provide one qualified technician who will perform MR scans in accordance with the information provided by the Hospital; (c) it will procure at its expense and, at all times during which service is provided to the Hospital hereunder, keep in full force and effect a maintenance contract for the maintenance of the Imager; (d) it will procure and, at all times during which service is provided to the Hospital hereunder, keep in full force and effect the following insurance coverage: (i) casualty insurance insuring the Mobile Unit; (ii) such insurance with respect to the performance of its technicians provided with the Mobile Unit as the Partnership shall deem necessary; (iii) excess liability insurance coverage to a limit of not less than $1,000,0000; and (e) it will provide a technician along with the Mobile Unit on each scheduled day of service, which technician shall be sufficiently trained to operate the Imager. The Hospital agrees that the Partnership is not required to and shall not provide professional interpretation services; (f) it will, as of the end of each day of service at the Hospital, provide to the Hospital hard copy images of each scan performed during such day of service; and (g) it shall have the exclusive right and responsibility to schedule patients for MRI scans subject to paragraph 7(b). (h) it will procure at its expense, Magnavist contrast media used for MRI patients. 5. Covenants and Responsibilities of Hospital. The Hospital makes the following covenants to the Partnership and undertakes the following responsibilities: (a) it has and will, at its expense, procure and maintain during the term of this Agreement, all necessary approvals, licenses, consents, or waivers from any federal, state, regional, or local health planning agency or other governmental body for the performance of MR scans on patients at the Hospital utilizing the Mobile Unit; (b) it will prepare, and keep available at all times during the scheduled service during the term hereof, the parking site selected for the Mobile Unit as provided in paragraph 6(b) and will provide and keep available at all times during which services are provided hereunder the ancillary utilities (including, but not limited to, electrical power and connections for at least two telephone lines to handle calls to and from the Mobile Unit) in accordance with the specifications provided by the Imager and van manufacturers and by the Partnership. The Hospital agrees that, during the term of this Agreement, the Partnership may park the Mobile Unit at the parking site located at the Hospital and utilize the Hospital's utilities while the Mobile Unit is not otherwise in use; (c) it will implement policies and procedures: (i) for the delivery and retrieval of patients to and from the Mobile Unit; (ii) for the care of patients during such delivery to and retrieval from the Mobile Unit and at all times that patients are located in the Mobile Unit; and, (iii) in order to comply with all governmental laws, ordinances, rules, and regulations applicable to building, equipment, and safety standards other than those applicable to the Mobile Unit itself; (d) it will provide a registered nurse or a licensed practical nurse who shall be present during the delivery and retrieval of patients and the performance of MR scans on any patients being cared for in the intensive care or cardiac care unit of the Hospital; (e) it will keep accurate records for the identification and care of patients while in the Mobile Unit and with regard to each scan performed utilizing the Imager while at the Hospital and shall insure that the patients execute informed consents prior to the performing of any services under this Agreement by the Partnership; provided, however, that the Partnership shall have the opportunity to review the consent form to be used by the Hospital and the Partnership's reasonable request for modification of such form shall be complied with by the Hospital; (f) it will deliver and retrieve patients, along with the patients' medical records, to and from the Mobile Unit as and when they are scheduled using its personnel; (g) it will be responsible for providing such personnel, procedures, equipment, and facilities as shall fully comply with all Department of Labor and Industry regulations together with all other applicable requirements for ingress and egress to and from the Hospital and the Mobile Unit; (h) it will be responsible for providing a licensed physician together with such other medical personnel as may be required to assist the physician, who, during the period when the Hospital's patients are in the Mobile Unit, perform or cause to be performed all tasks of general supervision, diagnosis, and patient care in accordance with all applicable professional standards, the Hospital's bylaws and medical staff bylaws, contracts and procedures, and all other regulations, restrictions, and other requirements of the Hospital. The physician provided by the Hospital shall be solely responsible for reading and/or determining the results of the scanning service. Such physician shall be responsible for communicating those results to the referring physician, appropriate members of the Hospital's staff, and to the patients. Provided, however, that the supervising physician or his or her designee shall be present to administer all intravenous contrast media and to attend the patient until such time as the scanning service is completed and the patient is removed from the Mobile Unit. Nothing in this Agreement or in the actual operation of the Mobile Unit shall impair or impede or shall limit the physician's medical judgement exercised for or on behalf of such patient; (i) it will procure and, at all times during which service is provided to the Hospital hereunder, keep in full force and effect liability insurance coverage with respect to the performance of MR scans utilizing the Mobile Unit with a limit of not less than $1,000,000; (j) it will provide all consumable medical supplies used in operating the Imager, including, but not limited to, single emulsion film, and magnetic storage media; and (k) the Hospital recognizes that the Partnership's entrance into this Agreement is induced in part by the covenants and assurances made by the Hospital that the Hospital will not hire the Partnership's employees since irrevocable harm and damage will be done to the Partnership in the event that the Hospital hires any employee of the Partnership. Therefore, the Hospital agrees that during the term of this Agreement, and for a period of one year thereafter, the Hospital shall not, directly or indirectly, hire, contract with, or be in any way associated with any employee or former employee of the Partnership. In addition, the Hospital agrees that the hiring of any such employee or any attempt to induce any such employee to terminate his or her employment with the Partnership shall be a breach of this restrictive covenant and shall entitle the Partnership to injunctive relief without the necessity of bond, all in addition to any other rights to which the Partnership is entitled and, provided further, that the Hospital agrees that the Partnership's employees may be provided by Medcross, Inc., a Florida corporation ("Medcross"), pursuant to a Management Agreement between the Partnership and Medcross and, in that case, the Medcross employees shall be considered to be employees of the Partnership for purposes of this restrictive covenant. 6. Joint Responsibilities and Covenants of the Partnership and the Hospital. The following are joint responsibilities and covenants of the Partnership and the Hospital: (a) to cooperate and share information, to execute all documents reasonably required, and to make their personnel available as may be reasonably required to assist each other in obtaining such state, local, and other governmental approvals as may be required (i) for the operation of the Mobile Unit, (ii) to qualify for cost reimbursements, and (iii) to obtain such approvals as may be necessary in order that the MR services provided shall be reimbursable by third- party payors; (b) mutually agree upon an appropriate parking location on the current premises of the Hospital for the operation of the Mobile Unit. The Partnership shall have final approval of the parking site, which approval shall not be unreasonably withheld; (c) allow each other reasonable access to all facilities, personnel, and records as may be necessary for each to keep books of account, prepare reports to governmental agencies, submit claims for reimbursement, and the like. The Partnership may from time to time specify the information that such records shall contain and may obtain copies or summaries of such records. All information obtained shall be kept confidential to the extent that it may involve records or reports of any patient treatment; and (d) to provide to each other certificates of all insurance carried by them pertaining to the operations contemplated herein. 7. Scheduling. (a) Subject to the provisions of paragraph 7(b), the Partnership shall provide service to the Hospital on the days set forth in the service schedule attached hereto as Exhibit "A". Service shall commence on the first scheduled day of service on or after the Commencement Date. (b) During each full day of service, the Mobile Unit shall be available for the performance of scans from 7:00 a.m. to 6:00 p.m. The first patient during each day of service shall be scheduled before 9:00 a.m. and patients shall be scheduled on a consecutive basis thereafter. The Mobile Unit and the technician may be removed from the Hospital at any time after the scan on the last scheduled patient has been completed, even if it is before 6:00 p.m. The Partnership shall not be obligated to commence any scans after 5:00 p.m. However, if all scheduled patients cannot be completed before 6:00 p.m., the Partnership may, in its discretion, make the Mobile Unit available for scans after 6:00 p.m. In the event that any scheduled day of service falls on any one of the following holidays, the Hospital shall have the option of electing not to receive service on that day: New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, Christmas Eve, and Christmas Day. In the event that the Hospital elects not to receive service during any such holiday, upon request of the Hospital, the Partnership will use its best efforts to reschedule the Mobile Unit during the next available unscheduled day, which may be a weekend or a holiday. (c) The Hospital understands that the Imager is a complex mechanical and electronic device, that there may be times that it will break down and that it will break down and that it is impossible to predict when that will occur. The Imager must also undergo periodic maintenance. Anything to the contrary set forth herein notwithstanding, in no event shall the Partnership be liable to the Hospital as a result of the unavailability of the Mobile Unit for any reason. 8. Charges for MR Service. (a) The following definitions apply for purposes of this paragraph 8: (i) "Standard Charge" means $350 per MR scan completed utilizing the Mobile Unit while located at the Hospital. (ii) "Minimum Monthly Charge" means the number of days during the month the Mobile Unit is scheduled and available for service multiplied by seven (7) scans per day, and further multiplied by the Standard Charge. (iii) "Incomplete Scan Charge" means $100 per MR scan that cannot be completed due to reasons such as claustrophobia, etc., or whenever a radiologist requests the patient return on a separate day from the day the original scan was performed to scan additional sequences on the same anatomical area. (iv) "Letter of Protection (LOP) Patient" means a patient where legal counsel, pursuant to a lawsuit, has issued a written request for immunity from payment of charges until settlement of the lawsuit. (b) The Partnership will provide the Hospital with an invoice at the end of each month for the greater of: (i) the Standard Charge for each MR patient scan completed plus any Incomplete Scan and LOP charges; or, (ii) the Monthly Minimum Charge plus any Incomplete Scan charges and LOP charges. Invoices shall be paid within thirty (30) days. (c) The Partnership shall mail a statement of account to the Hospital as of the first day of each month. If any invoices are past due as of the statement date, the Hospital shall pay late charges in an amount equal to 1-1/2% per month of the amount of each past due invoice. In addition to any and all remedies available to the Partnership for defaults hereunder by the Hospital, in the event that there are any invoices to the Hospital from the Partnership that are 15 days or more past due the Partnership may require the Hospital to pay in cash not less than five days prior to a scheduled day of service for each scan scheduled for that day. (d) The Hospital's obligation to pay the charges set forth herein to the Partnership is absolute and unconditional at the time that MR scans are performed utilizing the Mobile Unit while located at the Hospital. The obligation of the Hospital to pay the charges set forth herein to the Partnership is distinct and independent from the payment to the Hospital by or on account of the patients scheduled by the Hospital for MR scans. The collection and discharge of such patient accounts are the sole responsibility of the Hospital and not of the Partnership. (e) The Partnership shall be responsible for the billing and collection for all services rendered to Letter of Protection Patients. The Partnership shall issue a credit to the Hospital to cover the cost of supplies used in the amount of $40 per Letter of Protection Patient with an additional credit of $100 for each patient utilizing contrast material. The credit will be issued monthly. 9. Indemnification. (a) The Hospital shall indemnify and hold harmless the Partnership, its partners (exclusive of the Hospital in the event that the Hospital is a partner of the Partnership), its employees, and the directors, officers, and employees of the general partner of the Partnership (each of the foregoing is herein referred to as an "Indemnitee") from and against any and all Loss arising in connection with or as a result of (i) any breach hereof by the Hospital; (ii) the presence of the Mobile Unit at the designated parking space, (iii) the movement of any person to and from or within the Mobile Unit, (iv) any failure to diagnose conditions in any patient, unless due to the negligence of the Partnership or its employees, or (v) any other matter involving professional malpractice or negligence on the part of the Hospital or its employees. (b) The Partnership shall indemnify and hold harmless the Hospital and its directors and trustees, officers, and employees from and against any and all Loss arising in connection with or as a result of (i) any breach thereof by the Partnership; (ii) any matter involving negligence on the part of the Partnership or its employees; and (iii) any injury to any person or damage to property occurring while the Mobile Unit is in transit. (c) If any event shall give rise to an assertion by a party hereto that the other party should indemnify it, the party claiming indemnification shall promptly give written notice to the other, setting forth the basis of the claim. The parties shall cooperate to ensure that any lawsuit or claim is answered in a timely fashion. The indemnifying party may appoint counsel to defend the matter, although such counsel shall be acceptable to both parties. The indemnified party may, however, at its discretion, participate in the defense of such matter and may be represented by its own counsel, and such shall not be deemed to waive its right to indemnification for expenses of attorneys. The indemnified party may not settle, compromise, or pay any matter without the express, prior consent of the indemnifying party. The right to obtain indemnification hereunder shall survive any termination of this Agreement and shall not be subject to any right of set-off or counterclaim. (d) For the purposes of this paragraph 9, the term "Loss" shall mean any loss, damage, liability, cost, and expense including, without limitation, any interest, fine, court costs, reasonable investigation costs, penalties, and attorneys' and expert witness fees (including such fee in all trials, appeals, and administrative proceedings), disbursements, and expenses. (e) Each party's obligations to indemnify the other party hereunder is independent of and not affected by the availability or non-availability of any insurance coverage or payment under any policy of insurance, from any trust fund, or otherwise nor shall the obligation of the party to indemnify the other party hereunder be affected by any change in insurance, reduction in coverage, change in policy terms, creation of trust funds, or any other cause. 10. Managing Agent. The Hospital acknowledges that the Partnership has contracted with Medcross to act as its management agent. The Hospital agrees to cooperate fully with Medcross and its employees and to accept the requests and directions of Medcross as representing those of the Partnership. 11. Default and Termination. (a) It shall be an event of default by the Hospital if any one of the following events shall happen: (i) the Hospital shall fail to pay to the Partnership the charges provided for in paragraph 8 when due; (ii) the Hospital shall fail to keep, observe, or perform any other covenant, agreement, term, or provision of this Agreement to be kept, observed, or performed by the Hospital and any such failure shall continue for a period of 30 days after notice thereof is given by the Partnership to the Hospital; provided, however, if any such failure may, in the opinion of the Partnership, adversely affect the safety of patients, or constitutes a violation of applicable law, rule, or regulation of a governmental authority, such default shall be cured immediately by the Hospital. (iii) the Hospital shall apply for or consent to the appointment of a receiver, trustee, or liquidator of the Hospital of all or a substantial part of its assets, file a voluntary petition in bankruptcy, or admit in writing its inability to pay its debts as they come due, make a general assignment for the benefit of creditors, file a petition of an answer seeking reorganization or arrangement with creditors or to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against the Hospital in any bankruptcy, reorganization, or insolvency proceeding, or the entry of an order, judgement, or decree by a court of competent jurisdiction, on the application of a creditor, adjudicating the Hospital a bankrupt or insolvent or approving a petition seeking reorganization of the Hospital or appointing a receiver, trustee, or liquidator of the Hospital or if all or a substantial part of its assets and such order, judgement, or decree shall continue unstayed and in effect for a period of 60 consecutive days. (b) In the event of an occurrence of an event of default by the Hospital, the Partnership shall have the right to terminate this Agreement upon ten (10) days' written notice to the Hospital given at any time after the period of grace applicable thereto, and thereupon this Agreement shall terminate upon the expiration of such ten (10) day period. Provided, however, (i) if the default is for failure of the Hospital to pay when due the charges provided for in paragraph 8, the Partnership may terminate this Agreement effective immediately upon the delivery to the Hospital of written notice of termination, and (ii) if any default may adversely affect the safety of patients, or constitutes a violation of applicable law, rule, or regulation of a governmental authority, the Partnership may immediately suspend service hereunder without prejudice to its termination rights hereunder. (c) It shall be an event of default by the Partnership if any one of the following events shall happen: (i) the Partnership shall fail to keep, observe, or perform any covenant, agreement, term, or provision of this Agreement to be kept, observed, or performed by the Partnership and any such failure shall continue for a period of 30 days after written notice thereof given by the Hospital to the Partnership; (ii) the Partnership shall apply for or consent to the appointment of a receiver, trustee, or liquidator of the Partnership or of all or a substantial part of its assets, file a voluntary petition in bankruptcy, or admit in writing its inability to pay its debts as they come due, make a general assignment for the benefit of creditors, file a petition or an answer seeking reorganization or arrangement with creditors or to take advantage of any insolvency law, or file an answer admitting the material allegations of a petition filed against the Partnership in any bankruptcy, reorganization, or insolvency proceeding, or the entry of an order, judgement, or decree by a court of competent jurisdiction, on the application of a creditor, adjudicating the Partnership a bankrupt or insolvent or approving a petition seeking reorganization of the Partnership or appointing a receiver, trustee, or liquidator of the Partnership or of all or a substantial part of its assets and such order, judgement, or decree shall continue unstayed and in effect for a period of 60 consecutive days. (d) In the event of an occurrence of an event of default by the Partnership, the Hospital shall have the right to terminate this Agreement upon 10 days written notice to the Partnership given at any time after the period of grace applicable thereto, and thereupon this Agreement shall terminate upon the expiration of such 10 day period. (e) The termination of this Agreement under the provision of paragraphs 11(b) and 11(d) shall not affect the rights of the Hospital or the Partnership with respect to any damages they have suffered as the result of any breach of this Agreement, nor shall it affect the rights of the Hospital or the Partnership with respect to liability or claims accrued, or arising out of events occurring, prior to the date of termination. Neither the right of termination nor the right to bring an action for damages nor any other remedy available to either party hereunder shall be exclusive of any other remedy given hereunder or now or hereafter existing at law or in equity. 12. Term. This Agreement shall continue for a period of one (1) year beginning March 1, 1996 (the "Commencement Date") and shall be renewed automatically for additional one-year terms unless either party notifies the other party in writing at least ninety (90) days prior to the end of the then current term of its intent not to renew. 13. Force Majeure. (a) Anything to the contrary set forth herein notwithstanding, in the event that the Partnership is rendered unable, wholly or in part, by force majeure (as hereinafter defined) to carry out its obligations under this Agreement, then it shall give to the Hospital prompt notice of the force majeure with reasonably full particulars; thereupon, the obligations of the Partnership, so far as they are affected by the force majeure, shall be suspended. The Partnership shall use all reasonable diligence to resume its obligations as quickly as possible to the extent the same is within its reasonable control. (b) The term "force majeure" shall mean an act of God, strike, lockout, or other industrial disturbance, act of the public enemy, war, blockade, public riot, lightning, fire, storm, flood, explosion, governmental restraint, accident, unavailability of equipment due to maintenance, whether preventative or otherwise, delay in delivery of equipment, inoperability of equipment, adverse weather conditions, and any other cause whether of the kind specifically enumerated above or otherwise which precludes the Partnership's performance hereunder and is not reasonably within the control of the Partnership. 14. Miscellaneous. (a) It is expressly understood that the systems, methods, procedures, written materials, and controls employed by the Partnership in the performance of this Agreement are proprietary in nature, shall remain the property of the Partnership, and shall not at any time be utilized, distributed, copied, or otherwise employed or acquired by the Hospital unless approved by the Partnership. (b) Notwithstanding the place where this Agreement may be executed by either of the parties, this Agreement, the rights and obligations of the parties, and any claims and disputes relating thereto shall be subject to and governed by the laws of the State of Florida as applied to agreements among Florida residents to be entered into and performed entirely within the State of Florida. Such laws shall govern all aspects of this Agreement. (c) This Agreement represents the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, agreements, and representations. No amendment of this Agreement shall be binding or of any effect unless in writing duly signed by both parties hereto. (d) This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement may be assigned by either party to a successor in interest to all or substantially all of the assets or business of the assigning party who shall promptly notify the other party of the assignment of this Agreement. Any other assignment by a party (except a collateral assignment by the Partnership to a financial institution or lessor which makes available funds for the Mobile Unit) shall require the prior written consent of either party, which consent shall not be unreasonably withheld. (e) No waiver by any party hereto of any default of or breach by any other party under this Agreement shall operate as a waiver of any future default or breach, whether of like or different character or nature. (f) Any notice required or permitted by this Agreement shall be in writing and shall be deemed given at the time it is deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested, addressed to the party to whom it is to be given as follows: HOSPITAL: Edward White Hospital 2323 9th Avenue North St. Petersburg, FL 33713 ATTN: Joel Snook COMPANY: Medcross Imaging, Ltd. 3227 Bennet Street North St. Petersburg, FL 33713 ATTN: Doree' Michon Either party may change its address to which notices shall be sent by a notice similarly sent. (g) To the extent required by law, the Partnership hereby agrees that for a period of four years after this Agreement terminates, it shall make available upon written request of the Secretary of Health and Human Services or upon request of the Controller General or any duly authorized representative thereof, this Agreement and the books, documents, and records that may be necessary to certify the nature and extent of the costs related to this Agreement with the Hospital and, furthermore, the Partnership agrees that, if any of the value or cost of any work is provided pursuant to a subcontract with a value of $10,000 or more, the Partnership shall require that any such subcontractor sign a similar agreement to make its books and records available for such four-year period of time. (h) In the event of any litigation between the parties arising out of or relating to this Agreement, the prevailing party shall be entitled to recover all of its costs and expenses including, but not limited to, reasonable attorneys' fees, including attorneys' fees in all trials, appeals, and administrative proceedings. The parties hereto have executed this Agreement as of the 1st day of October, 1995. MEDCROSS IMAGING, LTD., a Florida limited partnership BY: MEDCROSS, INC., General Partner By: /s/ Doree Michon As Vice President - Operations EDWARD WHITE HOSPITAL, a Florida corporation By: /s/ Barry S. Stokes As CEO "HOSPITAL" EXHIBIT "A" Schedule of Service DAY TIME Monday 7:00 a.m. - 6:00 p.m. Wednesday 7:00 a.m. - 6:00 p.m. Thursday 7:00 a.m. - 6:00 p.m. Friday 7:00 a.m. - 6:00 p.m. Saturday ----- 1 See paragraph 7 regarding the terms of scheduled days of service. 2 Saturday and Thursday service is provided on an "as needed" basis by the Partnership. The Partnership may terminate Saturday or Thursday service at any time upon two-weeks notice to the Hospital, and therefore, will not consider Saturday or Thursday as a day of service for the purpose of calculating the Daily Minimum Charges.
EX-10.C 4 AMENDED AND RESTATED CONSULTING AGREEMENT BY AND AMONG MEDCROSS, INC. KALO ACQUISITIONS, L.L.C. AND JASON H. POLLAK THIS AGREEMENT (the "Agreement") is effective as of the 18th day of October, 1995, by and among Medcross, Inc., a Florida corporation with principal offices at 3227 Bennet Street North, St. Petersburg, Florida 33713 (the "Corporation"), Jason H. Pollak (hereinafter referred to as "Pollak" or the "Consultant" as the context may require) and Kalo Acquisitions, L.L.C., a Delaware limited liability Corporation with principal offices at 165 EAB Plaza, West Tower, Suite 628, Uniondale, New York 11556-0165 ("Kalo"). WHEREAS, Kalo, through its manager and employees has developed expertise in and is in the business of providing consulting services, including finding and assessing acquisition candidates and providing investor and public relations services; WHEREAS, Pollak is the manager and an employee of Kalo, and has expertise in the area of providing consulting services, including finding and assessing acquisition candidates and providing investor and public relations services; WHEREAS, the Corporation desires to engage Pollak to provide services to the Corporation as set forth below, upon the terms and subject to the conditions set forth herein; WHEREAS, Pollak desires to provide services to the Corporation as set forth below, upon the terms and subject to the conditions set forth herein; WHEREAS, Kalo, Pollak and the Corporation have agreed that Pollak shall render the services set forth below to the Corporation upon the terms and subject to the conditions set forth herein; and WHEREAS, Kalo has agreed to provide Pollak the opportunity to avail himself of Kalo's resources including, without limitation, use of any phone lines, computers, photocopiers, facsimile machines, postage meters and other supplies in exchange for Pollak's reimbursement to Kalo of the costs of the same. NOW, THEREFORE, in consideration of the foregoing and for such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Engagement. The Corporation hereby engages the Consultant to render to it for a period of three (3) years commencing February 1, 1996 (the "Term") the investor and public relations services described herein. The Term hereof may be renewed upon the written agreement of the Corporation, Kalo and the Consultant entered into prior to expiration of the initial Term hereof on such terms as the parties hereto may negotiate at the time of such renewal. 2. Services. For the Term of this Agreement, the Consultant shall perform the following services for the Corporation: (a) Assist the Corporation in locating, assessing and implementing the acquisition by the Corporation, by way of private or open market purchases of stock, purchase of assets, merger, tender offer, joint venture or otherwise, the acquisition by the Corporation of one or more businesses, divisions or other operating entities and/or assets, including without limitation thereto Image Trust, consistent with the directives of the Corporation; (b) Prepare and distribute, with the Corporation's prior approval, due-diligence packages for the brokerage community which would include presentation folders, press release sheets and a Corporation overview pamphlet; (c) Prepare and distribute, with the Corporation's prior approval, investor relations packages; (d) Coordinate broker presentations to be held a minimum of four (4) times per year; (e) Prepare and disseminate, with the Corporation's prior approval, information about the Corporation to investors; (f) Present and introduce the Corporation to broker/dealers, fund managers and analysts on a continual basis; (g) Prepare and disseminate, with the Corporation's prior approval, press releases in compliance with any applicable regulatory guidelines to wire/news services; (h) Disseminate for informational purposes the Corporation's publicly filed materials, including the Corporation's Annual and Quarterly Reports on Form 10-KSB and Form 10-QSB, respectively, to investors; (i) Assist with the set up of annual and special shareholder meetings; from time to time by the officers of the Corporation; (k) Reimburse Kalo for its costs related to the use of any of its resources as contemplated herein; (l) Locate and introduce at least ten (10) broker/dealers and/or market makers to the Corporation to make a market in the Corporation's securities; and (m) Bear all costs and expenses relating to any of the foregoing. 3. Compensation. In consideration for the performance of the services described above, the Corporation shall issue to the Consultant an option exercisable to purchase an aggregate of up to one hundred fifty thousand (150,000) shares of its common stock, par value $.007 per share (the "Common Stock"), which option (the "Option") shall be exercisable as set forth below and shall expire on January 31, 1999: (a) commencing on February 1, 1996, the Option shall become exercisable to purchase up to fifty thousand (50,000) shares of Common Stock at an exercise price of one dollar and fifty cents ($1.50) per share; (b) commencing on February 1, 1997, the Option shall become exercisable to purchase an additional fifty thousand (50,000) shares of Common Stock at an exercise price of two dollars and fifty cents ($2.50) per share; and (c) commencing on February 1, 1998, the Option shall become exercisable to purchase an additional fifty thousand (50,000) shares of Common Stock at an exercise price of three dollars and fifty cents ($3.50) per share. 4. Registration Rights. The Corporation shall file, contemporaneously with or as soon as practicable after execution hereof, a registration statement relating to the shares of Common Stock issuable pursuant hereto on Form S-8 with the Securities and Exchange Commission (the "Commission") pursuant to the Securities Act of 1933 (the "Act"). In the event that, for any reason whatsoever, such Form S-8 is not available for use by the Corporation, the Corporation shall file such form of registration statement as is available for use by the Corporation as specified or otherwise permitted by the Act and the rules and regulations promulgated thereunder. The Corporation shall bear the expenses of such registration and shall: (a) provide any requisite prospectuses meeting the requirements of the Act and such other documents as the Consultant may reasonably request for a period of at least twelve (12) months following expiration of the Option in order to facilitate the sale or other disposition of such securities; (b) register and qualify for sale any of such securities in such states as the Consultant may reasonably designate; and (c) do any and all other acts and things which may be necessary or desirable to enable the Consultant to consummate the sale or other disposition of such securities. The Consultant hereby acknowledges that it understands that: (a) neither the Option nor the shares of Common Stock issuable upon exercise thereof have previously been the subject of registration under the Act or any applicable state securities laws; (b) the Consultant may not sell or otherwise transfer the Option or the shares of Common Stock issuable upon exercise of the Option unless such securities are subject to an effective registration statement under the Act and any applicable state securities laws (unless exemptions from such registration requirements are available); (c) in the event that any shares of Common Stock issuable pursuant to exercise of the Option are issued at a time during which a registration statement relating to the same is not effective, until such shares of Common Stock are subject to an effective registration statement under the Act, a legend will be placed on any certificate or certificates evidencing the same indicating that the transfer of such securities has not been registered under the Act and setting forth or referring to the restrictions on transferability and sales of such securities; and (d) the Corporation will place stop transfer instructions against the certificate or certificates evidencing the securities issuable pursuant hereto to restrict the transfer thereof. 5. Representations and Warranties. The Consultant hereby represents and warrants that: (a) the Consultant will not sell or otherwise transfer the Option or the shares of Common Stock issuable upon exercise of the Option without compliance with the Act and any applicable state securities laws; (b) the Consultant has received and carefully read the following: (i) the Corporation's Annual Report on Form 10-KSB for the period ended December 31, 1994 (File No. 0-17973); (ii) the Corporation's Quarterly Reports on Form 10-QSB for the periods ended March 31, 1995, June 30, 1995 and September 30, 1995 (File No. 0-17973); and (iii) written or verbal responses for all questions the Consultant has submitted to the Corporation regarding its acquisition of the securities described herein, all of which the Consultant acknowledges have been provided to the Consultant (the "Corporate Materials"). The Consultant has not been furnished with any other materials or literature relating to the acquisition of the securities described herein, other than the Corporate Materials. The Consultant has been given the opportunity to ask questions of and to receive answers from the Corporation concerning the terms and conditions of the acquisition of the securities described herein and the Corporate Materials, and to obtain such additional written information necessary to verify the accuracy of same as the Consultant desires in order to evaluate the acquisition of and investment in the securities described herein. The Consultant acknowledges and confirms that the written and/or verbal responses provided to the Consultant by the Corporation in response to the Consultant's questions are not contrary to or inconsistent with, nor do they in any way conflict with the information set forth in the Corporate Materials. The Consultant further acknowledges that it fully understands the information contained in the Corporate Materials and the Consultant has had the opportunity to discuss any questions regarding the Corporate Materials with its counsel or other advisor. Notwithstanding the foregoing, the only information upon which the Consultant has relied is that set forth in the Corporate Materials and that derived by its own independent investigation. The Consultant acknowledges that the Consultant has received no representations or warranties from the Corporation or its employees or agents in making an investment decision related to the acquisition of the securities described herein, other than as set forth herein; (c) the Consultant is aware that the acquisition of the securities described herein is a speculative investment involving a high degree of risk and that there is no guarantee that the Consultant will realize any gain from its acquisition of or investment in such securities. The Consultant has specifically reviewed the Corporate Materials with a view toward acquiring the securities described herein; (d) the Consultant understands that no federal or state agency or other authority: (i) has made any finding or determination regarding the fairness of the transactions described herein, (ii) has made any recommendation or endorsement of the transactions described herein, or (iii) has passed in any way upon this agreement or the Corporate Materials; (e) the Consultant: (i) is acquiring the securities described herein solely for his own account for investment purposes only and not with a view toward resale or distribution thereof, either in whole or in part; and (ii) has no contract, undertaking, agreement or other arrangement, in existence or contemplated, to sell, pledge, assign or otherwise transfer the securities to any other person; (f) the Consultant has adequate means of providing for his current needs and contingencies and has no need for liquidity in the investment in the securities described herein. The Consultant has read, is familiar with and understands Rule 501 of Regulation D and represents that he is an "accredited investor" as defined in Rule 501(a) of Regulation D under the Act. The Consultant has no reason to anticipate any material change in his financial condition for the foreseeable future; (g) the Consultant is financially able to bear the economic risk of an investment in the securities described herein, including the ability to hold such securities indefinitely and to afford a complete loss of an investment in such securities; (h) the Consultant's overall commitment to investments which are not readily marketable is not disproportionate to the Consultant's net worth, and the Consultant's investment in the securities described herein will not cause such overall commitment to become excessive. The Consultant understands that the statutory basis on which such securities are being issued to the Consultant would not be available if the Consultant's present intention were to hold such securities for a fixed period of time or until the occurrence of a certain event. The Consultant realizes that, in the view of the Commission, the acquisition of such securities now with a present intention to resell by reason of a foreseeable specific contingency or any anticipated change in the market value of such securities, or in the condition of the Corporation or that of the industry in which the business of the Corporation is engaged or in connection with a contemplated liquidation, would, in fact, constitute an acquisition and/or purchase with an intention inconsistent with the Consultant's representations to the Corporation and the Commission would then regard such purchase as a purchase for which the exemption from registration under the Act relied upon by the Corporation in connection herewith is not available; and (i) the Consultant has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the acquisition of and an investment in the securities described herein. 6. Confidential Information. The parties hereto recognize that it is fundamental to the business and operation of the Corporation, its subsidiaries, affiliates and divisions thereof to preserve the specialized knowledge, trade secrets, and confidential information of the foregoing entities. The strength and good will of the Corporation is derived from the specialized knowledge, trade secrets, and confidential information generated from experience through the activities undertaken by the Corporation, its subsidiaries, affiliates and divisions thereof. The disclosure of any of such information and the knowledge thereof on the part of competitors would be beneficial to such competitors and detrimental to the Corporation, its subsidiaries, affiliates and divisions thereof, as would the disclosure of information about the marketing practices, pricing practices, costs, profit margins, design specifications, analytical techniques, concepts, ideas, process developments (whether or not patentable), customer and client agreements, vendor and supplier agreements and similar items or technologies. By reason of performance under this Agreement, the Consultant may have access to and may obtain specialized knowledge, trade secrets and confidential information such as that described herein about the business and operation of the Corporation, its subsidiaries, affiliates and divisions thereof. Therefore, the Consultant hereby agrees that he shall keep secret and retain in confidence and shall not use, disclose to others, or publish, other than in connection with the performance of services hereunder, any information relating to the business, operation or other affairs of the Corporation, its subsidiaries, affiliates and divisions thereof, including but not limited to, confidential information concerning the marketing practices, pricing practices, costs, profit margins, products, methods, guidelines, procedures, engineering designs and standards, design specifications, analytical techniques, technical information, customer, client, vendor or supplier information, employee information, or other confidential information acquired by each of them in the course of providing services for the Corporation. The Consultant agrees to hold as the Corporation's property all notes, memoranda, books, records, papers, letters, formulas and other data and all copies thereof and therefrom in any way relating to the business or operation of the Corporation, its subsidiaries, affiliates and divisions thereof, whether made by the Corporation or the Consultant or as may otherwise come into the possession of the Consultant. Upon termination of this Agreement or upon the demand of the Corporation, at any time, the Consultant shall deliver the same to the Corporation within twenty-four (24) hours of such termination or demand. 7. Reformation. In the event that a court of competent jurisdiction determines that the confidentiality provisions or part of a provision hereof are unreasonably broad or otherwise unenforceable because of the length of their respective terms or the breadth of their territorial scope, or for any other reason, the parties hereto agree that such court may reform the terms and/or scope of such covenants so that the same are reasonable and, as reformed, shall be enforceable. 8. Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Florida without regard to the principles of conflicts of laws thereof and shall inure to the benefit of and be binding upon Kalo, the Consultant and the Corporation and their respective legal successors and assigns. 9. Remedies. In the event of a breach of any of the provisions of this Agreement, the non-breaching party shall provide written notice of such breach to the breaching party. The breaching party shall have thirty (30) days after receipt of such notice in which to cure its breach. If, on the thirty-first (31st) day after receipt of such notice, the breaching party shall have failed to cure such breach, the non-breaching party thereafter shall be entitled to seek damages. It is acknowledged that this Agreement is of a unique nature and of extraordinary value and of such a character that a breach hereof by the Consultant or the Corporation shall result in irreparable damage and injury for which the non-breaching party may not have any adequate remedy at law. Therefore, if, on the thirty-first (31st) day after receipt of such notice, the breaching party shall have failed to cure such breach, the non-breaching party shall also be entitled to seek a decree of specific performance against the breaching party, or such other relief by way of restraining order, injunction or otherwise as may be appropriate to ensure compliance with this Agreement. The remedies provided by this section are non-exclusive and the pursuit of such remedies shall not in any way limit any other remedy available to the parties with respect to this Agreement, including, without limitation, any remedy available at law or equity with respect to any anticipatory or threatened breach of the provisions hereof. 10. No Continuing Waiver. The waiver by any party of any provision or breach of this Agreement shall not operate as or be construed to be a waiver of any other provision hereof or of any other breach of any provision hereof. 11. Notice. Any and all notices from either party to the other which may be specified by, or otherwise deemed necessary or incident to this Agreement shall, in the absence of hand delivery with return receipt requested, be deemed duly given when mailed if the same shall be sent to the address of the party set out on the first page of this Agreement by registered or certified mail, return receipt requested, or express delivery (e.g., Federal Express). 12. Severability of Provisions. The provisions of this Agreement shall be considered severable in the event that any of such provisions are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable. Such invalid, void or otherwise unenforceable provisions shall be automatically replaced by other provisions which are valid and enforceable and which are as similar as possible in term and intent to those provisions deemed to be invalid, void or otherwise unenforceable. Notwithstanding the foregoing, the remaining provisions hereof shall remain enforceable to the fullest extent permitted by law. 13. Assignability. This Agreement shall not be assignable without the prior written consent of the non-assigning party or parties hereto and shall be binding upon and inure to the benefit of any heirs, executors, legal representatives or successors or permitted assigns of the parties hereto. 14. Entire Agreement; Amendment. This Agreement contains the entire agreement among the Corporation, Kalo and the Consultant with respect to the subject matter hereof. This Agreement may not be amended, changed, modified or discharged, nor may any provision hereof be waived, except by an instrument in writing executed by or on behalf of the party against whom enforcement of any amendment, waiver, change, modification or discharge is sought. No course of conduct or dealing shall be construed to modify, amend or otherwise affect any of the provisions hereof. 15. Headings. The paragraph headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of the provisions of this Agreement. 16. Termination. The Corporation may terminate this Agreement with or without cause at any time upon delivery of thirty (30) days prior written notice to the other parties hereto. Any such termination shall result in the termination of the Consultant's respective rights to receive any further compensation, except with respect to accrued compensation which Consultant shall have the right to receive notwithstanding termination hereof. 17. Survival. Sections 5, 6, 7, 8, 11 and 12 shall survive the termination for any reason of this Agreement (whether such termination is by the Corporation, upon the expiration of this Agreement by its terms or otherwise). * * * * * IN WITNESS WHEREOF, the parties have caused this Agreement for Consulting Services to be executed and delivered by their duly authorized officers as set forth below and have caused their respective corporate seals to be hereunder affixed as of the date first above written. MEDCROSS, INC. By:/s/ Henry Y.L. Toh Henry Y.L. Toh, President KALO ACQUISITIONS, L.L.C. By:/s/ Jason H. Pollak Jason H. Pollak, Manager THE CONSULTANT /s/ Jason H. Pollak Jason H. Pollak
-----END PRIVACY-ENHANCED MESSAGE-----