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EXHIBIT 10.18
 
AMENDMENT NO. 4 TO CREDIT AGREEMENT
 
This AMENDMENT NO. 4 TO CREDIT AGREEMENT (this "Amendment"), dated as of
December 3, 2007, by and among RADNET MANAGEMENT, INC., a California corporation
(the "Borrower"), the other persons designated as Credit Parties on the
signature pages hereof, GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware
corporation, as agent ("Agent") and the Persons signatory thereto from time to
time as Lenders.  Unless otherwise specified herein, capitalized terms used in
this Amendment shall have the meanings ascribed to them in the Credit Agreement
(each as hereinafter defined).
 
RECITALS
 
WHEREAS, the Borrower, the Credit Parties, Agent and Lenders have entered into
that certain Credit Agreement dated as of November 15, 2006 (as amended by that
certain (i) Limited Waiver and Amendment No. 1 to Credit Agreement dated as of
April 5, 2007, (ii) Amendment No. 2 to Credit Agreement dated as of May 30, 2007
and (iii) Amendment No. 3 to Credit Agreement dated as of August 23, 2007, and
as further amended, supplemented, restated or otherwise modified from time to
time, the "Credit Agreement"); and
 
WHEREAS, the Borrowers, Agent and Requisite Lenders have agreed to the
amendments as set forth herein;
 
NOW THEREFORE, in consideration of the mutual execution hereof and other good
and valuable consideration, the parties hereto agree as follows:
 
1.           Amendments to Credit Agreement.
 
(a)           Amendment to Section 5.3.  Section 5.3 of the Credit Agreement is
hereby amended by inserting the following new clause (m):
 
"(m)           Borrower and its Subsidiaries may use the Net Proceeds of the St.
Joe's Disposition to make equity Investments in Persons which are not
Subsidiaries of Holdings."
 
(b)           Amendment to Section 5.7.  Section 5.7 of the Credit Agreement is
hereby amended by inserting the following new clause (d):
 
"(d) the St. Joe's Disposition as long as (1) the Net Proceeds of the St. Joe's
Disposition are applied as required by Section 1.5(e) or are, within one hundred
eighty (180) days of receipt thereof by any Credit Party, used to make an
investment permitted by Section 5.3(m) and (2) the requirements of
Section 5.7(c)(ii), (c)(iii), (c)(v) and (c)(vi) are satisfied with respect to
the St. Joe's Disposition."
 
(c)           Amendment to Section 6.2(a).  Section 6.2(a) of the Credit
Agreement is hereby amended to be titled "Quarterly Financials and Statements."
 
(d)           Amendment to Section 6(a)(i).  Section 6.2(a)(i) of the Credit
Agreement is hereby amended and restated to read in its entirety as follows:
 

 
 

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"(i)           As soon as available and in any event within forty-five (45) days
after the end of each fiscal Quarter (including the last Fiscal Quarter of
Holdings' Fiscal Year), Borrower will deliver (1) the consolidated and
consolidating balance sheets of Holdings and its Subsidiaries, as at the end of
such quarter, and the related consolidated and consolidating statements of
income, stockholders' equity and cash flow for such Fiscal Quarter and for the
period from the beginning of the then current Fiscal Year of Holdings to the end
of such Fiscal Quarter, (2) a report setting forth in comparative form the
corresponding figures for the corresponding periods of the previous Fiscal Year
and the corresponding figures from the most recent Projections for the current
Fiscal Year delivered pursuant to Section 6.2(h) and (3) a schedule of the
outstanding Indebtedness for borrowed money of Holdings and its Subsidiaries
describing in reasonable detail each such debt issue or loan outstanding and the
principal amount and amount of accrued and unpaid interest with respect to each
such debt issue or loan."
 
(e)           Amendment to Section 6.2(d).  Section 6.2(d) of the Credit
Agreement is hereby amended by replacing the word "Quarter" which appears
therein with the word "Month".
 
(f)           Amendments to Annex A.  Annex A of the Credit Agreement is hereby
amended by inserting the following defined term in its appropriate alphabetical
location:
 
"St. Joe's Disposition means collectively (i) the sale on or about November __,
2007 of a portion of Advanced Imaging Partners, Inc's equity interest in
Advanced Imaging at St. Joseph Medical Center, LLC (f/k/a MRI at St. Joseph
Medical Center, LLC) pursuant to that certain Amended and Restated Operating
Agreement, dated as of November __,2007, by and among St. Joseph Medical Center,
Inc. and Advanced Imaging Partners, Inc. and (ii) the sale of certain assets
pursuant to that certain Asset Purchase Agreement, dated as of November __,
2001, by and between Advanced Imaging at St. Joseph Medical Center. LLC,
Advanced Imaging Partners, Inc. and RadNet, Inc."
 
2.           Representations and Warranties of Credit Parties.  The Credit
Parties represent and warrant that:
 
(a)           the execution, delivery and performance by each Credit Party of
this Amendment have been duly authorized by all necessary corporate action
required on its part and this Amendment is a legal, valid and binding obligation
of such Credit Party enforceable against such Credit Party in accordance with
its terms except as the enforcement thereof may be subject to (i) the effect of
any applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting creditors' rights generally and (ii) general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law); and
 
(b)           after giving effect to this Amendment. each of the representations
and warranties contained in the Credit Agreement is true and correct in all
material respects on and as of the date hereof, except to the extent that such
representation and warranties expressly relate to an earlier date.
 

 
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3.           Conditions To Effectiveness.  This Amendment shall be effective
upon satisfaction of the following conditions precedent:
 
(a)           This Amendment shall have been executed and delivered by the
Agent, Requisite Lenders and the Credit Parties;
 
(b)           The execution and delivery of the Amendment No. 4 to Second Lien
Credit Agreement, in form, substance and manner satisfactory to the Agent; and
 
(c)           The Agent shall have received, on behalf of each Lender who has
executed this Amendment, a nonrefundable amendment fee equal to 0.05% of such
Lender's Commitment, which fee shall be fully earned and payable on the date
hereof.
 
4.           Reference To And Effect Upon The Credit Agreement.
 
(a)           The Credit Agreement and the other Loan Documents shall remain in
full force and effect, as amended hereby, and are hereby ratified and confirmed.
 
(b)           The execution, delivery and effectiveness of this Amendment shall
not operate as a waiver of any right, power or remedy of Agent or any Lender
under the Credit Agreement or any Loan Document, nor constitute a waiver or
amendment of any provision of the Credit Agreement or any Loan Document, except
as specifically set forth herein.  Upon the effectiveness of this Amendment,
each reference in the Credit Agreement to "this Credit Agreement," "hereunder,"
"hereof," "herein" or words of similar import shall mean and be a reference to
the Credit Agreement as amended hereby.
 
5.           Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.
 
6.           Headings.  Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Amendment for any other purposes.
 
7.           Counterparts.  This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, but
all such counterparts shall constitute one and the same instrument.
 
8.           Reaffirmation of Guaranties.  The Credit Parties signatory hereto
hereby reaffirm their Guaranties of the Obligation and reaffirm that the
Obligations are and continue to be secured by the security interest granted by
the Credit Parties in favor of the Agent, on behalf of itself and the Lenders,
under the Security Agreement and the Pledge Agreement and all of the terms,
conditions, provisions, agreements, requirements, promises, obligations, duties,
covenants
 
 
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IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Amendment as of the date first written above.
   

 
RADNET MANAGEMENT, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
                 

    

 
RADNET, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
                 

   

 
BEVERLY RADIOLOGY MEDICAL GROUP III
            By:
ProNet Imaging Medical Group, Inc., its general partner
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
            By:
Beverly Radiology Medical Group, Inc., its general partner
            By: /s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
                           
PRONET IMAGING MEDICAL GROUP, INC.
            By:
/s/ Howard G. Berger
     
Name: Howard G. Berger, M.D.
     
Title: President
 

 
Signature Page to Amendment No. 4 to Credit Agreement
 
 

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BEVERLY RADIOLOGY MEDICAL GROUP, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

   
 

 
RADNET SUB, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
 

 
SOCAL MR SITE MANAGEMENT, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
   

 
RADNET MANAGEMENT I, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

   
   

 
RADNET MANAGEMENT II, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

   
Signature Page to Amendment No. 4 to Credit Agreement
 
 

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RADNET MANAGED IMAGING SERVICES, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

   
  

 
DIAGNOSTIC IMAGING SERVICES, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: Chief Financial Officer
         

   
  

 
RADIOLOGIX, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
      

 
ADVANCED IMAGING PARTNERS, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
  

 
IDE IMAGING PARTNERS, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

   
 
Signature Page to Amendment No. 4 to Credit Agreement
 
 

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MID ROCKLAND IMAGING PARTNERS, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

   

  

 
PACIFIC IMAGING PARTNERS, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

   
  

 
QUESTAR IMAGING, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
 

 
TREASURE COAST IMAGING PARTNERS, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
 

 
COMMUNITY IMAGING PARTNERS, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
 
Signature Page to Amendment No. 4 to Credit Agreement
 
 

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RADIOLOGY AND NUCLEAR MEDICINE IMAGING PARTNERS, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

   

  

 
VALLEY IMAGING PARTNERS, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

   
  

 
QUESTAR DULUTH, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
 

 
QUESTAR LOS ALAMITOS, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
 

 
QUESTAR VICTORVILLE, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
Signature Page to Amendment No. 4 to Credit Agreement
 

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ROCY MOUNTAIN OPENSCAN MRI, LLC
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
  
 

 
FRI, INC.
         
 
By:
/s/ Howard G. Berger      
Name: Howard G. Berger, M.D.
     
Title: President
         

 
 
 
Signature Page to Amendment No. 4 to Credit Agreement

 
 

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GENERAL ELECTRIC CAPITAL CORPORATION
as Agent and a Lender
         
 
By:
/s/ Andrew D. Moore      
Duly Authorized Signatory
     
 
         

 
 
Signature Page to Amendment No. 4 to Credit Agreement
 
 
 

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[INSERT NAME OF LENDER] as Lender
         
 
By:
       
Name:
     
Title:
         

 
 
Signature Page to Amendment No. 4 to Credit Agreement
 
 

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