Exhibit
10.52


 


ADDENDUM
TO ADMINISTRATIVE SERVICES AGREEMENT


 


This Addendum (the “Addendum”)
is entered into as of January 1, 2010, by and among MARYLAND RADIATION THERAPY
MANAGEMENT SERVICES, INC., a Maryland corporation (“MANAGEMENT SERVICES”) and
KATIN RADIATION THERAPY, P.A., a Maryland professional corporation (the “PA”).
This Addendum amends Section 3.1 of the Administrative Services Agreement dated
October 31, 1998 between the parties (the “Agreement”) to adjust the monthly
Service Fee of $4,333.33 paid in 2009 to a monthly Service Fee of $3,666.67,
and replaces the Addendum of that same Section dated January 1, 2009. From and
after the date hereof, Section 3.1 shall read as follows:


 


3.1.
Service Fee. For the services to be provided hereunder by MANAGEMENT
SERVICES, the PA shall pay to MANAGEMENT SERVICES a monthly Service Fee of
$3,666.67 The parties agree that the Service Fee represents the fair market
value of the services provided by MANAGEMENT SERVICES hereunder and that the
parties shall meet annually to reevaluate the value of services provided by
MANAGEMENT SERVICES and shall establish the fair market value thereof for
purposes of this Section 3.1.


 


 


	
  Accepted:

  	
  MARYLAND RADIATION THERAPY
  MANAGEMENT SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian J. Carey

  
	
   

  	
   

  	
  Brian J. Carey

  
	
   

  	
   

  	
  Vice President & CFO

  
	
   

  	
   

  	
   

  
	
  Accepted:

  	
  KATIN RADIATION THERAPY,
  P.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel E. Dosoretz

  
	
   

  	
   

  	
  Daniel E. Dosoretz, M.D.

  
	
   

  	
   

  	
  Vice President

  



 

















 


ADDENDUM
TO ADMINISTRATIVE SERVICES AGREEMENT


 


This Addendum (the “Addendum”)
is entered into as of January 1, 2009, by and among MARYLAND RADIATION THERAPY
MANAGEMENT SERVICES, INC., a Maryland corporation (“MANAGEMENT SERVICES”) and
KATIN RADIATION THERAPY, P.A., a Maryland professional corporation (the “PA”).
This Addendum amends Section 3.1 of the Administrative Services Agreement dated
October 31, 1998 between the parties (the “Agreement”) to adjust the monthly
Service Fee of $5,166.67 paid in 2008 to a monthly Service Fee of $4,333.33,
and replaces the Addendum of that same Section dated January 1, 2008. From and after the date hereof, Section
3.1 shall read as follows:


 


3.1.
Service Fee. For the services to be provided hereunder by MANAGEMENT
SERVICES, the PA shall pay to MANAGEMENT SERVICES a monthly Service Fee of
$4,333.33. The parties agree that the Service Fee represents the fair market
value of the services provided by MANAGEMENT SERVICES hereunder and that the
parties shall meet annually to reevaluate the value of services provided by
MANAGEMENT SERVICES and shall establish the fair market value thereof for
purposes of this Section 3.1.


 


 


	
  Accepted:

  	
  MARYLAND RADIATION THERAPY
  MANAGEMENT SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David NT Watson

  
	
   

  	
   

  	
  David NT Watson

  
	
   

  	
   

  	
  Vice President & CFO

  
	
   

  	
   

  	
   

  
	
  Accepted:

  	
  KATIN RADIATION THERAPY,
  P.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel E. Dosoretz

  
	
   

  	
   

  	
  Daniel E. Dosoretz, M.D.

  
	
   

  	
   

  	
  Vice President

  



 

















 


ADDENDUM
TO ADMINISTRATIVE SERVICES AGREEMENT


 


This Addendum (the “Addendum”)
is entered into as of January 1, 2008, by and among MARYLAND RADIATION THERAPY
MANAGEMENT SERVICES, INC., a Maryland corporation (“MANAGEMENT SERVICES”) and
KATIN RADIATION THERAPY, P.A,, a Maryland professional corporation (the “PA”),
This Addendum amends Section 3.1 of the Administrative Services Agreement dated
October 31, 1998 between the parties (the “Agreement”) to adjust the monthly
Service Fee of $16,667.67 paid in 2007 to a monthly Service Fee of $5,166.67,
and replaces the Addendum of that same Section dated January 1, 2007. From and
after the date hereof Section 3.1 shall read as follows:


 


3.1.
Service Fee. For the services to be provided hereunder by MANAGEMENT
SERVICES, the PA shall pay to MANAGEMENT SERVICES a monthly Service Fee of
$5,166.67. The parties agree that the Service Fee represents the fair market
value of the services provided by MANAGEMENT SERVICES hereunder and that the
parties shall meet annually to reevaluate the value of services provided by
MANAGEMENT SERVICES and shall establish the fair market value thereof for
purposes of this Section 3.1.


 


 


	
  Accepted:

  	
  MARYLAND RADIATION THERAPY
  MANAGEMENT SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David NT Watson

  
	
   

  	
   

  	
  David NT Watson

  
	
   

  	
   

  	
  Vice President & CFO

  
	
   

  	
   

  	
   

  
	
  Accepted:

  	
  KATIN RADIATION THERAPY,
  P.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel E. Dosoretz

  
	
   

  	
   

  	
  Daniel E. Dosoretz, M.D.

  
	
   

  	
   

  	
  Vice President

  



 

















 


ADMINISTRATIVE
SERVICES AGREEMENT

“Maryland”


 


This Administrative Services
Agreement (“Agreement”) is entered into as of October 31, 1998 (“Effective Date”)
by and among MARYLAND RADIATION THERAPY MANAGEMENT SERVICES, INC., a Maryland
corporation (“MANAGEMENT SERVICES”) and KATIN RADIATION THERAPY, PA., a
Maryland professional corporation (the “PC”).


 


RECITALS


 


A. The PC is a Maryland
professional corporation that engages in the business of providing or arranging
for the provision of health care services (the “Practice”). The PC has entered
into and throughout the term of this Agreement may (if MANAGEMENT SERVICES does
not do so itself as provided herein) continue to enter into arrangements with
insurers, HMOs and other third-party payors (“Payors”) to provide or arrange
for the provision of health care services to persons covered by those Payors (“Enrollees”).


 


B. The PC has entered into
written employment agreements with physicians and other health care providers
and health care professionals (“Employed Providers”) licensed to practice in
the State of Maryland. The PC may also enter into independent contractor
agreements with various physicians and other health care providers and health
care professionals (“Contracting Providers”) to assist the PC in providing or
arranging for the provision of health care services to Enrollees and other
patients of the PC (collectively, “Patients”).


 


C. MANAGEMENT SERVICES
engages in the business of providing certain administrative and support
services concerning the day-to-day affairs of radiation therapy office (the “Offices”),
both in their startup and established phases, and in providing space in the
Offices, equipment, furnishings, supplies, inventory, personnel and working
capital to Offices and facilities management in connection therewith.


 


D. The PC desires to secure
certain administrative services from MANAGEMENT SERVICES in connection with its
operation of the Practice in the Offices, and to lease from MANAGEMENT SERVICES
certain space, equipment, furnishings, supplies and inventory in connection
therewith.


 


E. The PC and MANAGEMENT
SERVICES desire to enter into a written agreement for the provision by
MANAGEMENT SERVICES, on an exclusive basis, of administrative services to the
PC with respect to the Practice, and for the provision of space, furnishings,
supplies, inventory, non-medical personnel and management services to the
Practice, so as to permit the PC to devote its efforts on a concentrated and
continuous basis to the rendering of medical services to its Patients.


 


NOW, THEREFORE, in
consideration of the mutual covenants and conditions contained herein, the
parties agree as follows:


 

















 


I. RESPONSIBILITIES OF THE PC


 


1.1. Sole Responsibility
for All Medical and Professional Matters. All medical and professional
matters relating to the provision of radiation therapy or oncology services at
the Offices shall be the sole responsibility of the PC. The PC shall use and
occupy the facilities provided by MANAGEMENT SERVICES hereunder exclusively for
the practice of medicine. The PC expressly acknowledges that the medical
practice or practices conducted at these facilities shall be conducted solely
by Employed Providers and Contracting Providers.


 


1.2. Employed Providers
and Contracting Providers. The PC shall have complete control of and
responsibility for the hiring, engagement, compensation, supervision
evaluation, and termination of all Employed Providers and Contracting
Providers, including nurses, physician assistants and other licensed healthcare
professionals, With respect to physicians, the PC shall only employ and
contract with licensed physicians meeting applicable credentialing guidelines
established by the PC. The PC shall be responsible for the payment of salaries
and wages, compensation, payroll taxes, employee benefits, and all other taxes
and charges now or hereafter applicable to Employed Providers and Contracting
Providers. Prior to making any changes with respect to any of the Employed
Providers or Contracting Providers, the PC shall consult with MANAGEMENT
SERVICES, although MANAGEMENT SERVICES shall provide input only and shall not
conclude whether an Employed Provider should be hired or terminated. The PC
shall also consult with MANAGEMENT SERVICES with regard to the terms of
contracts entered into between the PC and Employed Providers and Contracting
Providers and the terms and conditions of their employment or engagement as
independent contractors, as applicable.


 


1.3. Fees, Charges and
Payor Agreements. The PC shall, after consultation with MANAGEMENT
SERVICES, determine the fees, charges, premiums, or other amounts due in
connection with its delivery of health care services to Patients. Such fees,
charges, premiums, or other amounts, regardless of whether determined on a
fee-for-service, capitated, prepaid, or other basis, shall be reasonable and
consistent with the fees, charges, premiums and other amounts due to health
care providers for similar services within the community under the type of
reimbursement program involved. MANAGEMENT SERVICES shall provide input
relating to the foregoing but shall not conclude the level of fees, charges,
premiums, or other amounts the PC should establish.


 


1.4. Compliance with Law.
The PC shall require all of its Employed Providers and Contracting Providers to
comply with all laws, regulations, and ethical and professional standards
applicable to the practice of medicine. Employed Providers and Contracting
Providers who are physicians shall at all times be licensed, to practice
medicine in the State of Maryland and all other states in which an Office at which
such physician provides patients medical services is located.


 


2

















 


1.5. Offices; Hours of
Operation; Staffing. The PC shall conduct the Practice from the current
Office located in Maryland at                                           , as well as
such hospitals and other facilities as may be agreed upon by MANAGEMENT
SERVICES and the PC from time to time. Any additional or substitute Office
shall be deemed to be part of the Practice for the purposes of this Agreement.
The hours of operation and the medical staffing of the Offices shall be
established by the agreement of the PC and MANAGEMENT SERVICES from time to
time hereafter.


 


1.6. Quality Assurance.
The PC shall rigorously monitor utilization and quality of services provided by
Employed Providers and Contracting Providers, shall develop, maintain, and
administer quality assurance programs and performance standards and shall take
all steps necessary to remedy any and all deficiencies in the efficiency or the
quality of medical care provided.


 


1.7. Patient Referrals.
The parties agree that the benefits to the PC hereunder do not require, are not
payment for, and are not in any way contingent upon the admission, referral or
any other arrangements for the provision of any item or service offered by
MANAGEMENT SERVICES or any Affiliate, as defined in Section 8.21 of this
Agreement, of MANAGEMENT SERVICES to any of the PC’s Patients in any facility
or laboratory controlled, managed or operated by MANAGEMENT SERVICES or any
Affiliate of MANAGEMENT SERVICES.


 


1.8. Professional Dues
and Education Expenses. The PC and its Employed Providers and Contracting
Providers shall be solely responsible for the cost of membership in
professional associations, and continuing professional education. The PC shall
ensure that each of its Employed Providers and Contracting Providers
participates in such continuing medical education as is necessary for such
provider to remain current with professional licensure and community standards.


 


1.9. Professional
Insurance Eligibility. The PC shall cooperate with MANAGEMENT SERVICES in
the obtaining and retaining of professional liability insurance by assuring
that either its Employed Providers and Contracting Providers are insurable or
instituting proceedings to terminate any Employed Provider of Contracting
Provider who is not insurable or loses Ms or her insurance eligibility.
Termination shall be effective no more than thirty (30) days from such
determination. The PC shall require all Employed Providers and Contracting
Providers to participate in an on-going risk management program.


 


1.10. Fees for
Professional Services. MANAGEMENT SERVICES shall be solely responsible for
legal, accounting and other professional services incurred by the PC in
operating the Practice absent a violation by the PC of any provisions of this
Agreement.


 


3

















 


II.
RESPONSIBILITIES OF MANAGEMENT SERVICES


 


2.1.
General Responsibility. MANAGEMENT SERVICES shall
have general responsibility for providing fiscal services, administrative
services, and other strategic and tactical support services to the PC with
respect to the Practice, except as otherwise provided in this Agreement.
MANAGEMENT SERVICES shall perform all required functions in accordance with
sound management techniques. Notwithstanding MANAGEMENT SERVICES’s general and
specific rights and responsibilities set forth in this Agreement, the PC shall
have full authority and control with respect to all medical, professional and
ethical determinations over the PC’s Practice to the extent required by
federal, state and local laws, rules and regulations, MANAGEMENT SERVICES shall
not engage in activities which constitute the practice of medicine under
applicable laws. MANAGEMENT SERVICES shall neither exercise control over nor
interfere with the physician-patient relationship, which shall be maintained
strictly between the physicians employed by or contracting with the PC and the
PC’s Patients.


 


2.2. Responsibilities with
Regard to Selected Patient- Related Matters.


 


(a) Patient Relations.
Scheduling. Etc. MANAGEMENT SERVICES shall assist the PC in maintaining
positive Patient relations by, among other things, in conjunction with and at
the direction of the PC: scheduling Patient appointments; responding to Patient
grievances and complaints in matters other than medical evaluation, diagnosis,
and treatment; and establishing and maintaining in the PC’s name and on its
behalf Patient transfer arrangements to expedite referrals where medically
necessary; as determined and requested by the attending physician.


 


(b) Recordkeeping.
MANAGEMENT SERVICES shall assist the PC in maintaining Patient medical records
in accordance with applicable laws concerning their confidentiality and
retention, and promptly making such records available to the PC’s Employed
Providers, Contracting Providers and other appropriate recipients.
Notwithstanding the foregoing sentence, Patient medical records shall be and
shall remain the property of the PC, and the content thereof shall be solely
the responsibility of the PC.


 


(c) Quality Assurance.


 


(i) In General.
MANAGEMENT SERVICES shall assist the PC, in accordance with criteria
established by the PC, in the development and implementation of appropriate
quality assurance programs, including development of performance and
utilization standards, sampling techniques for case review, and preparation of
appropriately documented studies. Notwithstanding the foregoing, MANAGEMENT
SERVICES shall not perform any duties that constitute the corporate practice of
medicine in Maryland and all other states in which an Office at which the PC
provides patient medical services is located.


 


(ii) Periodic Independent
Review. On behalf of the PC,


 


4

















 


MANAGEMENT SERVICES may
periodically perform quality assurance and utilization reviews through nurses
employed by it; provided, however, that MANAGEMENT SERVICES shall not
engage in activities which constitute the practice of medicine under applicable
law. Alternatively, MANAGEMENT SERVICES may periodically arrange for an
independent quality assurance and utilization review to be performed by persons
who are unrelated to the PC or MANAGEMENT SERVICES, or to any Affiliate of the
PC or MANAGEMENT SERVICES, which has expertise in such areas, and which has
been approved in advance by the PC. Such review shall include a random sampling
of medical records (consistent with laws regarding the confidentiality of
medical records), an analysis of the PC’s quality assurance utilization review
procedures, and an analysis of the appropriateness of costs associated with
operating the PC’s medical practice at the Practice.


 


2.3. Responsibilities
with Regard to Selected Financial Matters.


 


(a) Billing.
MANAGEMENT SERVICES shall submit on a timely basis all bills and necessary
documentation required by Patients and Payors in order to obtain payment in
connection with the PC’s delivery of health’ care services at the Practice or
its arrangement for the delivery of such services. In seeking such payment,
MANAGEMENT SERVICES shall act as the PC’s exclusive agent in billing and
collecting professional fees, charges and other amounts owed to the PC. In this
connection, the PC hereby appoints MANAGEMENT SERVICES, during the term of this
Agreement, as the PC’s true and lawful attorney-in-fact, with power of
substitution, for the following purposes relating to the Practice:


 


(i) To bill the PC’s
Patients on the PC’s behalf.


 


(ii) To collect accounts
receivable generated by such billings on the PC’s behalf, including, where
deemed appropriate by MANAGEMENT SERVICES and approved in advance by the PC,
settling and compromising claims, assigning such accounts receivable to a
collection agency or the bringing of legal action against a Patient or Payor on
the PC’s behalf.


 


(iii) To receive payments on
behalf of the PC from Patients and Payors, to cause such payments to be
deposited into appropriate depository accounts (each such depository account, a
“Collections Account”) arid to write checks against or otherwise withdraw such
payments to pay the PC Expenses (as hereinafter defined).


 


(b) Accounting.
MANAGEMENT SERVICES shall direct and maintain the operation of an appropriate
accounting system with respect to the PC’s operation of the Practice which
shall perform all bookkeeping and accounting services required for the
operation of the Practice, including the maintenance, custody and supervision
of business records, ledgers and reports; the establishment, administration and
implementation of accounting procedures, controls and systems. Such accounting
system shall allow MANAGEMENT SERVICES to prepare the reports specified in Section
2.3(c).


 


5

















 


(c) Reporting.
MANAGEMENT SERVICES shall present to the PC reports on the financial condition
of the PC on the basis set forth below in clauses (i) and (ii) and such other
reports that the PC may reasonably request, including daily activity reports,
weekly analyses, alternative delivery system reports, backlog reports and the
like, MANAGEMENT SERVICES also shall provide such reports as may be required by
any regulatory agency having jurisdiction over the operations of the PC.


 


The reports initially
required to be delivered to the PC under this Section 2.3(c) with respect to
the Practice are as follows:


 


(i) As soon as possible
after the close of each month, a balance sheet and a related statement of
revenues and expenses showing the results of the PC’s operations for the
preceding month of the fiscal year and the year to date.


 


(ii) As soon as possible
after the close of each fiscal year, a balance sheet and related statement of
revenues and expenses showing the results of the PC’s operations during that
fiscal year.


 


2.4. Responsibilities
with Respect to Facilities Management.


 


(a) Office Management
Services. MANAGEMENT SERVICES shall provide, supervise and direct the
development of appropriate and efficient office management services with
respect to the PC’s operation of the Practice.


 


(b) Offices.
MANAGEMENT SERVICES shall provide, manage and maintain the real property
comprising the Offices and reasonable improvements during the term of this
Agreement. In consultation with the PC} MANAGEMENT
SERVICES shall oversee all management, maintenance and other decisions
pertaining to the Offices consistent with the terms of this Agreement.
MANAGEMENT SERVICES shall maintain the Offices in good condition and repair,
reasonable wear and tear excepted. MANAGEMENT SERVICES shall provide such
additional and/or replacement facilities as the PC and MANAGEMENT SERVICES
agree, from time to time. MANAGEMENT SERVICES shall provide the PC with all
utilities (including water, gas and electricity), heat, air conditioning,
telephone, janitorial services and disposal services (including the disposal of
medical wastes) required in connection with the operation of the Offices.


 


(c) Use of Assets.


 


(i) MANAGEMENT SERVICES
shall lease or purchase and, when necessary, replace equipment and furnishings
needed for the delivery of health care services by the PC at the Offices and
for the delivery of services provided by MANAGEMENT SERVICES pursuant to this
Agreement. MANAGEMENT SERVICES shall consult with the PC with respect to the
suppliers, prices and specifications of such equipment and furnishings.
MANAGEMENT SERVICES shall use its best efforts to keep and maintain the
equipment and


 


6

















 


furnishings used by the PC
at the Offices in good working order and condition.


 


(ii) All assets provided or
purchased under this Agreement by MANAGEMENT SERVICES, including any management
information systems, shall remain the property of MANAGEMENT SERVICES and the
PC shall have the right to use such assets only during the term of this Agreement.


 


(iii) Nothing in this
Agreement shall be construed to affect or limit in any way the professional
discretion of the PC to select and use equipment, furnishings, inventory and
supplies purchased by MANAGEMENT SERVICES in accordance with the terms of this
Agreement insofar as such selection or use constitutes or might constitute the
practice of medicine.


 


(d) Supplies and
Inventory. MANAGEMENT SERVICES shall provide and replenish, as necessary
and as may be permitted by applicable law, the inventory and supplies needed
for the delivery of medical services by the PC, and for the delivery of
services by MANAGEMENT SERVICES pursuant to this Agreement. MANAGEMENT SERVICES
shall consult with the PC with respect to the suppliers, prices and
specifications of such inventory and supplies.


 


(e) No Warranties.
THE PC ACKNOWLEDGES THAT MANAGEMENT SERVICES MAKES NO WARRANTIES OR
REPRESENTATIONS, EXPRESS OR IMPLIED, AS TO THE SUITABILITY OR ADEQUACY OF ANY
FACILITIES, EQUIPMENT, FURNISHINGS, INVENTORY OR SUPPLIES PROVIDED PURSUANT TO
THIS AGREEMENT FOR THE CONDUCT OF A MEDICAL PRACTICE OR FOR ANY OTHER
PARTICULAR PURPOSE.


 


2.5. Other
Responsibilities.


 


(a) Public Relations.
MANAGEMENT SERVICES shall provide services reasonably necessary for enhancing
public relations for the PC’s health care services and shall submit any public
relations programs for prior review and revision, if necessary, and approval by
the PC. Such public relations shall comply with applicable laws and regulations
governing the use of promotional activities by the medical profession and with
applicable standards of medical ethics.


 


(b) Insurance.


 


(i) Property and
Liability Insurance. MANAGEMENT SERVICES shall obtain and maintain during
the term of this Agreement, if available on commercially reasonable terms, (a) property
damage insurance protecting the Practice premises and the personal property
located therein against such hazards and in such amounts as MANAGEMENT SERVICES
determines are reasonably prudent; and (b) general liability insurance in such
amounts as MANAGEMENT SERVICES determines are reasonably prudent.


 


7














 


(ii) General Liability
Insurance. The PC shall obtain and maintain during the term of this
Agreement general liability insurance in such amounts as the PC determines are
reasonably prudent. The PC shall name MANAGEMENT SERVICES as an additional
insured on such policies.


 


(iii) Malpractice
Insurance. It is understood that the PC and its Employed Providers shall,
at the PC’s cost, at all times be covered by malpractice insurance with
coverage in usual and customary amounts for practitioners of the same profession
and specialties in Maryland and, if applicable, other slates. The PC shall
ensure that its written agreements with Contracting Providers who are
physicians require such Contracting Providers to at all times be covered by
malpractice insurance in amounts that are usual and customary for practitioners
of the same profession and specialty in Maryland and, if applicable, other
states. Such malpractice policies shall name MANAGEMENT SERVICES as an
additional insured.


 


(iv) Copies of Insurance
Policies. MANAGEMENT SERVICES or the PC shall, upon request by the PC or
MANAGEMENT SERVICES, as the case may be, promptly provide the PC or MANAGEMENT
SERVICES, as the case may be, with copies of all policies of insurance that it
procures under this Agreement. Each such policy shall provide that it cannot be
modified or terminated except after thirty (30) days written notice to
MANAGEMENT SERVICES.


 


(c) Personnel.
MANAGEMENT SERVICES shall furnish the services of all personnel other than
physicians, nurses, physician assistants or other licensed healthcare
professionals required for the operation of the Practice. Except as
specifically provided in this Section 2.5(c), MANAGEMENT SERVICES has
the power to recruit, hire, train, promote, assign, set the compensation level for,
and discharge all personnel other than physicians, nurses, physician assistants
or other licensed healthcare professionals. Any personnel employed by
MANAGEMENT SERVICES who perform patient care services shall perform such
services under the exclusive direction, supervision and control of the PC,
while all other services of MANAGEMENT SERVICES personnel shall be performed
under the exclusive direction, supervision and control of MANAGEMENT SERVICES.
If the PC is dissatisfied with the services of any personnel employed by
MANAGEMENT SERVICES, the PC shall consult with MANAGEMENT SERVICES. MANAGEMENT
SERVICES shall in good faith determine whether the performance of that employee
could be brought to acceptable levels through counsel and assistance, or whether,
if requested by the PC (provided that such employee is not an officer or senior
manager of MANAGEMENT SERVICES), such employee should be removed from providing
services for the PC. Employee assignments shall be made with the intention of
assuring consistent and continued rendering of quality services and to ensure
prompt availability and accessibility of personnel to physicians in order to
develop constant, familiar and routine working relationships between the
Employed Providers, Contracting Providers and MANAGEMENT SERVICES personnel.


 


(d) Employed Providers.
MANAGEMENT SERVICES shall assist the PC


 


8

















 


in the administration of any
employee benefit plans established by the PC in compliance with the provisions
of Section 1.10 hereof.


 


(e) Managed Care
Agreements. MANAGEMENT SERVICES shall negotiate and administer all managed
care agreements on behalf of the PC and shall consult with the PC on all
professional and clinical matters relating thereto.


 


III. FINANCIAL
ARRANGEMENTS


 


3.1. Service Fee. For
the services to be provided hereunder by MANAGEMENT SERVICES, the PC shall pay
to MANAGEMENT SERVICES a monthly Service Fee of $124,000. The parties agree
that the Service Fee represents the fair market value of the services provided
by MANAGEMENT SERVICES hereunder and that the parties shall meet annually to
reevaluate the value of services provided by MANAGEMENT SERVICES and shall
establish the fair market value thereof for purposes of this Section 3.1.


 


3.2. Security Agreement;
the PC Expenses. To secure the PC’s payment obligations hereunder, the PC
is concurrently herewith entering into a security agreement, in form acceptable
to MANAGEMENT SERVICES, to grant to MANAGEMENT SERVICES a security interest in
the accounts receivable of the PC and all of the PC’s rights to receive
payments under managed care contracts. The PC shall cooperate with MANAGEMENT
SERVICES and execute all reasonably necessary documents in connection with the
granting of such security interest.


 


All payments on behalf of
the PC from Patients and Payors shall be deposited into one or more Collection
Accounts. To the extent the PC receives any such payments, the PC shall direct
such payments to MANAGEMENT SERVICES for deposit in one or more Collection
Accounts.


 


3.3. Arbitration. Any
controversy or claim arising out of or relating to this Agreement or the
transactions contemplated hereby, including any controversy or claim arising
out of or relating to the parties’ decision to enter into tin’s Agreement or
the transactions contemplated hereby, shall be settled by binding arbitration.
Each party shall select an arbitrator who has at least three (3) years
experience in health care or medical practice management or in health care or
medical practice dispute resolution. The arbitration proceedings shall be
confidential and the arbitrators may issue appropriate protective orders to
safeguard each party’s confidential information. Such protective orders shall
be enforceable by any court of competent jurisdiction. Except as specifically
provided in this section, the arbitration shall be conducted in accordance with
the rules of conciliation and arbitration of the American Arbitration
Association. The two arbitrators shall agree upon any issue no later than
thirty (30) days after the date the second arbitrator has been engaged, and
shall take into account the principles and objectives set forth in paragraph
(b) below. If the two arbitrators cannot agree on a determination, then within
five (5) days thereafter the two arbitrators shall select a third arbitrator,
who shall have the same qualifications required for the first two arbitrators.
No later than thirty (30) days after the date the third arbitrator is engaged,
he or she shall determine which of the two positions best satisfies


 


9

















 


the provisions of the
contract and the intent of the parties, taking into account the principles and
objectives set forth in paragraph (b) below. The third arbitrator shall have no
right to propose a middle ground between the two or to make any modification of
the proposals of either party. The third arbitrator’s determination shall be
final and binding on all parties. The cost and expense of the third arbitrator
shall be shared equally between the parties. If either party fails to engage an
arbitrator as required hereunder, the arbitrator selected by the other party
shall conduct the arbitration and make the final decision in accordance with
this Section 3.4.


 


(b) The arbitration shall be
conducted at the offices of MANAGEMENT SERVICES or such other mutually
acceptable site. In conducting the arbitration, the arbitrators) shall consider
the following principles and objectives of the parties in entering into this
Agreement:


 


(i) The parties contemplate
that the PC shall pay MANAGEMENT SERVICES a flat fee for the fair market value
of MANAGEMENT SERVICES’ hereunder.


 


(ii) The parties agree that
MANAGEMENT SERVICES shall in no way provide medical services to Patients.


 


(iii) The parties
contemplate an expansion of the Practice by acquisition or purchase of other
Offices and by expansion of the variety of specialty medical services provided
and/or ancillary services provided.


 


IV.
REPRESENTATIONS AND WARRANTIES; COVENANTS


 


4.1. Representations and
Warranties and Covenants of the PC.


 


(a) The PC hereby represents
and warrants to MANAGEMENT SERVICES as follows:


 


(i) The PC is and shall
remain during the term of this Agreement a professional corporation duly
organized, validly existing and in good standing under the laws of the State of
Maryland, actively engaged in the practice of medicine, and possessing full
corporate power and authority to own its properties and to conduct the business
in which it engages.


 


(ii) The PC has full
corporate power and authority to execute and deliver this Agreement and to
engage in the transactions and obligations contemplated by this Agreement. Upon
its execution, this Agreement shall constitute a valid and binding obligation
of the PC, enforceable in accordance with its terms, except as limited by
applicable bankruptcy, insolvency, moratorium, or other similar laws affecting
generally the rights of creditors and by principles of equity. The party
executing this Agreement on behalf of the PC is duly authorized to do so.


 


10

















 


(iii) The consummation of
the transactions contemplated by this Agreement will not: result in a breach of
the terms, provisions, or conditions of or constitute a default under the
Articles of Incorporation, By-Laws or other enabling or governing instruments
of the PC or any agreement to which the PC is a party or by which it is bound;
or, to the best knowledge of the PC, constitute a violation of any applicable
law or regulation.


 


(b) The PC hereby covenants
to MANAGEMENT SERVICES that it shall not, without the prior written consent of
MANAGEMENT SERVICES, take any action to terminate or nullify, or release any
Employed Provider from, the terms of any noncompetition covenant set forth in
any employment agreement between the PC and such Employed Provider.


 


4.2. Covenants and
Warranties of MANAGEMENT SERVICES. MANAGEMENT SERVICES hereby represents
and warrants to the PC as follows:


 


(a) MANAGEMENT SERVICES is
and shall remain during the term of this Agreement a corporation which is duly
organized, validly existing and in good standing under the laws of the State of
Maryland, possessing full corporate power and authority to own its properties
and to conduct the business in which it engages.


 


(b) MANAGEMENT SERVICES has
full corporate power and authority to execute and deliver this Agreement and to
engage in the transactions and obligations contemplated by this Agreement. Upon
its execution, this Agreement shall constitute a valid and binding obligation
of MANAGEMENT SERVICES, enforceable in accordance with its terms, except as
limited by applicable bankruptcy, insolvency, moratorium, or other similar laws
affecting generally the rights of creditors and by principles of equity. The
party executing this Agreement on behalf of MANAGEMENT SERVICES is duly
authorized to do so.


 


(c) The consummation of the
transactions contemplated by this Agreement will not: result in any breach of
the terms, provisions or conditions of or constitute a default under the Certificate
of Incorporation, Bylaws or other enabling or governing instruments of
MANAGEMENT SERVICES or any agreement to which MANAGEMENT SERVICES is a party or
by which it is bound; or, to the best knowledge of MANAGEMENT SERVICES,
constitute a violation of any applicable law or regulation.


 


V. TERM
AND TERMINATION


 


5.1 Initial and Renewal
Term. The term of this Agreement will be for an initial period of
twenty-five (25) years after the Effective Date, and shall be automatically
renewed for successive five (5) year periods thereafter (collectively, the “Term”),
provided that neither MANAGEMENT SERVICES nor the PC shall have given notice of
termination of this Agreement at least one hundred twenty (120) days before the  end of the initial term or any renewal term,
or unless otherwise terminated as provided in Section 5.2 of this Agreement.


 


11

















 


5.2 Termination.


 


(a) Termination by the PC.
The PC may immediately terminate this Agreement at its discretion, upon written
notice as follows:


 


(i) If MANAGEMENT SERVICES
becomes insolvent by reason of its inability to pay its debts as they mature;
is adjudicated bankrupt or insolvent; files a petition in bankruptcy,
reorganization or similar proceeding under the bankruptcy laws of the United
States or shall have such a petition filed against it which is not discharged
within thirty (30) days; has a receiver or other custodian, permanent or
temporary, appointed for its business, assets or property; makes a general
assignment for the benefit of creditors; has its bank accounts, property or
accounts attached; has execution levied against its business or property; or
voluntarily dissolved or liquidates or has a petition filed for corporate
dissolution and such petition is not dismissed with thirty (30) days;


 


(ii) If the MANAGEMENT
SERVICES fails to comply with any material provision of this Agreement, or any
other agreement with the PC, and does not correct such failure within sixty
(60) days after written notice of such failure to comply is delivered by the PC
specifying the nature of the breach in reasonable detail.


 


(b) Termination by
MANAGEMENT SERVICES. MANAGEMENT SERVICES may immediately terminate this
Agreement at its discretion, upon written notice as follows:


 


(i) If the PC becomes
insolvent by reason of its inability to pay its debts as they mature; is
adjudicated bankrupt or insolvent; files a petition in bankruptcy,
reorganization or similar proceeding under the bankruptcy laws of the United
States or shall have such a petition filed against it which is not discharged
within thirty (30) days; has a receiver or other custodian, permanent or
temporary, appointed for its business, assets or property; makes a general
assignment for the benefit of creditors; has its bank accounts, property or
accounts attached; has execution levied against its business or property; or
voluntarily dissolves or liquidates or has a petition filed for corporate
dissolution and such petition is not dismissed with thirty (30) days; or


 


(ii) If the PC fails to
comply with any material provision of this Agreement with MANAGEMENT SERVICES,
and does not correct such failure within sixty (60) days after written notice
of such failure to comply is delivered by MANAGEMENT SERVICES specifying the
nature of the breach in reasonable detail.


 


(c) Termination by
Agreement. In the event the PC and MANAGEMENT SERVICES shall mutually agree
in writing, this Agreement may be terminated on the date specified in such
written agreement.


 


(d) Legislative,
Regulatory or Administrative Change. In the event there shall be a change
in the Medicare or Medicaid statutes, federal statutes, state statutes, case
laws,


 


12

















 


administrative
interpretations, regulations or general instructions, the adoption of new
federal or state legislation, or a change in any third-party reimbursement
system, any of which are reasonably likely to materially and adversely affect
the manner in which either party may perform or be compensated for its services
under this Agreement or which shall make this Agreement or any related
agreements unlawful or unenforceable, or which would be reasonably likely to
subject either party to this Agreement, or any member, shareholder, officer,
director, employee, agent or affiliated organization to any civil or criminal
penalties or administrative sanctions, the parties shall immediately use their
best efforts to enter into a new service arrangement or basis for compensation
for the services furnished pursuant to this Agreement that complies with the
law, regulation, or policy, or which minimizes the possibility of such
penalties, sanctions or unenforceability, and that approximates as closely as
possible the economic position of the parties prior to the change. If the parties
are unable to reach a new agreement within a reasonable time, then either party
may submit the issue to arbitration pursuant to Section 3.3 for the purpose of
reaching an alternative arrangement that is equitable under the circumstances.


 


5.3 Effects of
Termination. Upon termination of this Agreement, as provided in this
Article V, neither party shall have any further obligations hereunder except
for (i) obligations accruing prior to the date of termination, including,
without limitation, payment of the Service Fee relating to services provided
prior to the termination of this Agreement, (ii) obligations, promises, or
covenants set forth herein that are expressly made to extend beyond the Term,
including, without limitation, insurance, indemnities and non-competition
provisions, which provisions shall survive the expiration or termination of
this Agreement. In effectuating the provisions of this Section 5.3, the PC
specifically acknowledges and agrees that if this Agreement terminates pursuant
to Sections 5.2(b) or (d), MANAGEMENT SERVICES shall continue for a period not
to exceed ninety (90) days to collect and receive on behalf of the PC on an
exclusive basis all cash collections from accounts receivable in existence at
the time this Agreement is terminated, it being understood that (a) such cash
collections may be used to compensate MANAGEMENT SERVICES for services rendered
prior to the termination of this Agreement, (b) MANAGEMENT SERVICES shall not
be entitled to collect accounts receivable after the termination date of this
Agreement is terminated pursuant to Section 5.2(a), and (c) the MANAGEMENT
SERVICES shall deduct for such cash collections any other amounts owed to
MANAGEMENT SERVICES under this Agreement, including, without limitation, any reasonable
costs incurred by MANAGEMENT SERVICES in carrying out the post-termination
procedures and transactions contemplated herein. MANAGEMENT SERVICES shall
remit remaining amounts from such collection activities, if any, to the PC.
Upon the expiration or termination of this Agreement for any reason or cause
whatsoever, MANAGEMENT SERVICES shall surrender to the PC all books and records
pertaining to the PC’s Patient medical records and PC Records (as defined in
Section 7.2).


 


13

















 


VI.
RESTRICTIVE COVENANTS


 


6.1. Covenant Regarding
Proprietary Information. In the course of the relationship created pursuant
to this Agreement, the PC will have access to certain methods, tirade secrets,
processes, ideas, systems, procedures, invention’s, discoveries, concepts,
software in various stages of development, designs, drawings, specifications,
models, data, documents, diagrams, flow charts, research, economic and
financial analysis, developments, procedures, know-how, policy manuals,
financial data, form contracts, marketing ad other techniques, plans,
materials, forms, copyrightable materials and trade information regarding the
operations of MANAGEMENT SERVICES and/or of its Affiliates (collectively, the “Protected
Parties”). The foregoing, together with the existence and terms of this
Agreement, are referred to in this Agreement as “Proprietary Information”. The
PC shall maintain all such Proprietary Information in strict secrecy and shall
not divulge such information to any third parties, except as may be necessary
for the discharge of its obligations under this Agreement. The PC shall take
all necessary and proper precautions against disclosure of any Proprietary
Information to unauthorized persons by any of its officers, directors,
employees or agents. All officers, directors, employees and agents of the PC
who will have access to all or any part of the Proprietary Information may be
required to execute an agreement, at the reasonable request of MANAGEMENT
SERVICES, valid under the law of the jurisdiction in which such agreement is
executed, and in a form acceptable to MANAGEMENT SERVICES and its counsel,
committing themselves to maintain the Proprietary Information in strict
confidence and not to disclose it to any unauthorized person or entity. The
Protected Parties not party to this Agreement are hereby specifically made
third party beneficiaries of this Section 6.1, with the power to enforce the
provisions hereof. Upon termination of this Agreement for any reason, the PC
and each of its Employed Providers and Contracting Providers shall cease all
use of any of the Proprietary Information and, at the request of MANAGEMENT
SERVICES, shall execute such documents as may be necessary to evidence the PC’s
abandonment of any claim thereto. The parties recognize that a breach of this
Section 6.1 cannot be adequately compensated in money damages and therefore
agree that injunctive relief shall be available to the Protected Parties as their
respective interests may appear.


 


The obligations of the PC
under this Section 6.1 shall not apply to information: (i) which is a matter of
public knowledge on or becomes a matter of public knowledge after the Effective
Date of this Agreement, other than as a breach of the confidentiality terms of
this Agreement or as a breach of the confidentiality terms of any other
agreement between the PC and MANAGEMENT SERVICES or its Affiliates; or (ii) was
lawfully obtained by the PC on a nonconfidential basis other than in the course
of performance under this Agreement and from some entity other than MANAGEMENT
SERVICES or its Affiliates or from some person other than one employed or
engaged by MANAGEMENT SERVICES or its Affiliates, which entity or person has no
obligation of confidentiality to MANAGEMENT SERVICES or its Affiliates.


 


6.2. Covenants Not to
Compete During the Term. The parties recognize that the services to be
provided by MANAGEMENT SERVICES shall be feasible only if the PC operates an
active medical practice to which the PC and Employed Providers devote full time


 


14

















 


and attention. To that end:


 


(a) Restrictive Covenants
by the PC. During the term of this Agreement, the PC shall not establish,
operate or provide physician or other health care services at any medical
office, clinic or other health care facility providing services substantially
similar to those provided by the PC pursuant to this Agreement anywhere other
than at the Offices and as may be approved in writing by MANAGEMENT SERVICES. The
PC shall also not enter into any management or administrative services
agreement or arrangement with any person or entity other than MANAGEMENT
SERVICES without MANAGEMENT SERVICES’s prior written approval.


 


(b) Restrictive Covenants
by Employed Providers. All employment contracts between the PC and its
Employed Providers shall name MANAGEMENT SERVICES as a third-party beneficiary
to the contract and shall not be revised without the prior written consent of
MANAGEMENT SERVICES. The contracts shall include noncompetition agreements with
its Employed Providers who are physicians, the substance and form of which is
set forth as Exhibit A hereto, and which the PC will enforce.


 


6.3. Covenant Not to
Compete Following Termination. For three (3) years following the
termination of this Agreement by MANAGEMENT SERVICES pursuant to Section 5.2,
the PC shall not enter into any management or administrative services agreement
or any similar arrangement with any person or entity for the provision of the
same or similar services as MANAGEMENT SERVICES provides to the PC under this
Agreement.


 


6.4. Covenant Not to
Solicit. During the term of this Agreement and for three (3) years
following the termination of this Agreement, the PC shall not:


 


(a) Directly or indirectly
solicit, recruit or hire, or induce any party to solicit, recruit or hire any
person who is an employee of, or who has entered into an independent contractor
arrangement with, MANAGEMENT SERVICES or any Affiliate of MANAGEMENT SERVICES
(excluding any person who performs patient services);


 


(b) Directly or indirectly,
whether for itself or for any other person or entity, call upon, solicit,
divert or take away, or attempt to solicit, call upon, divert or take away any
of MANAGEMENT SERVICES’s customers, business, or clients; or


 


(c) Disrupt, damage, impair
or interfere with the business of MANAGEMENT SERVICES.


 


6.5. Enforcement.
MANAGEMENT SERVICES and the PC acknowledge and agree that since a remedy at law
for any breach or attempted breach of the provisions of this Article VI or of
Article VII shall be inadequate, either party shall be entitled to specific
performance and injunctive or other equitable relief in case of any such breach
or attempted breach, in addition to whatever other remedies may exist by law.
All parties hereto also waive


 


15

















 


any requirement for the
securing or posting of any bond in connection with the obtaining of any such
injunctive or other equitable relief. If any provision of Article VI or Article
VII relating to the restrictive period, scope of activity restricted and/or
other provisions described therein shall be declared by a court of competent
jurisdiction to exceed the maximum time period, scope of activity restricted or
geographical area such court deems reasonable and enforceable under applicable
law, the time period, scope of activity restricted and/or area of restriction
held reasonable and enforceable by the court shall thereafter be the
restrictive period, scope of activity restricted and/or the territory
applicable to the restrictive covenant provisions in this Article VI or Article
VII. The invalidity or non-enforceability of this Article VI or Article VII in
any respect shall not affect the validity or enforceability of the remainder of
this Article VI or Article VII or of any other provisions of this Agreement.


 


VII.
INFORMATION AND RECORDS


 


7.1. Ownership of Records.
At all times during and after the term of this Agreement, including any
extensions or renewals hereof, all business records, including but not limited
to, business agreements, books of account, general administrative records and
all information generated under or contained in the management information
system pertaining to MANAGEMENT SERVICES’s obligations hereunder, and other
business information of any kind or nature, except for Patient medical records
and the PC’s Records (as defined in Section 7.2), shall be and remain the sole
property of MANAGEMENT SERVICES; provided that after termination of this
Agreement the PC shall be entitled to reasonable access to such records and
information, including the right to obtain copies thereof, for any purpose
related to patient care or the defense of any claim relating to patient care or
the business of MANAGEMENT SERVICES or the PC.


 


7.2. The PC’s Business
and Financial Records. At all times during and after the term of this
Agreement, the financial, corporate and personnel records and information
relating exclusively to the business and activities of the PC, as distinguished
from the business and activity of MANAGEMENT SERVI.CES, hereinafter referred to
as “the PC’s Records,” shall be and remain the sole property of the PC.


 


7.3. Access to Records.
Each party shall be entitled, upon request and with reasonable advance notice,
to obtain access to all records of the other party directly related to the
performance of such party’s obligations pursuant to this Agreement; provided,
however, that such right shall not allow for access to records that must
necessarily be kept confidential. Either party, at its expense, shall have the
right to make copies of any records to which it has access pursuant to this
Section.


 


7.4. Confidentiality of
Records. MANAGEMENT SERVICES and the PC shall adopt procedures for
maintaining the confidentiality of the records relating to the operations of
MANAGEMENT SERVICES and the PC which do not constitute Proprietary Information,
which information is not otherwise available to third parties publicly or by
law, and shall comply with all applicable federal and state statutes and
regulations relating to such records. Patient


 


16

















 


medical records and other
privileged Patient information shall not be disclosed or utilized by the PC or
MANAGEMENT SERVICES or their agents or employees except as required or
permitted by applicable laws and regulations.


 


VIII.
MISCELLANEOUS


 


8.1. Independent
Contractor Status of Parties. In the performance of the work, duties and
obligations under this Agreement, it is mutually understood and agreed that
each party is at all times acting and performing as an independent contractor
with respect to the other and that no relationship of partnership joint venture
or employment is created by this Agreement. Neither party, nor any other person
performing services on behalf of such party pursuant to this Agreement, shall
have any right or claim against the other party for Social Security benefits,
workers’ compensation benefits, disability benefits, unemployment insurance
benefits, health benefits, vacation pay, sick leave or any other employee
benefits of any kind.


 


8.2. No Waiver. The
waiver by any party to this Agreement of any breach of any term or condition of
this Agreement shall not constitute a waiver of subsequent breaches. No waiver
by any party of any provision of this Agreement shall be deemed to constitute a
waiver of any other provision.


 


8.3. Notices. If, at
any time after the execution of this Agreement, it shall become necessary or
convenient for one of the parties to serve any notice, demand or communication
upon the other party, such notice, demand, or communication shall be in writing
and shall be served personally, by nationally recognized overnight courier
which provides confirmation of delivery, or by depositing the same in the
United States mail, registered or certified, return receipt requested, postage
prepaid and to such address as either party may have furnished to the other
party in writing as the place for the service of notice. Any notice so mailed
shall be deemed to have been given three (3) days after the same has been
deposited in the United States mall; when delivered if the same has been given
personally; or the next business day if the same has been delivered to a
nationally recognized overnight courier service.


 


8.4. Assignment.
Neither party may sell, transfer, assign, or otherwise convey its rights or
obligations under this Agreement without the prior written consent of the
other, which consent shall not be unreasonably withheld. Notwithstanding the
foregoing, MANAGEMENT SERVICES shall have the right to (a) assign its rights
and/or delegate all or any of its obligations to any of its Affiliates; and/or
(b) subcontract some portion of its obligations hereunder to a third party
which is not an Affiliate of MANAGEMENT SERVICES, in each case without the
consent of the PC.


 


8.5. Successors and
Assigns. Subject to the provisions of this Agreement respecting assignment,
the terms, covenants and conditions contained herein shall be binding upon and
inure to the benefit of the successors and permitted assigns of the parties
hereto.


 


8.6. Severability.
Nothing contained in this Agreement shall be construed to require


 


17














 


the commission of an act
contrary to law, and whenever there is any conflict between any provision of
this Agreement and any statute, law, ordinance or regulation, the latter shall
prevail. In such event, and in any case in which any provision of this Agreement
is determined to be in violation of a statute, law, ordinance or regulation,
the affected provision(s) shall be limited only to the extent necessary to
bring it within the requirements of the law and, insofar as possible under the
circumstances, to carry out the purposes of this Agreement. The other
provisions of this Agreement shall remain in full force and effect, and the
invalidity or unenforceability of any provision hereof shall not affect the
validity and enforceability of the other provisions of this Agreement; nor the
availability of all remedies in law or equity to the parties with respect to
such other provisions.


 


8.7. Third Parties.
Except as provided in Article VII, nothing in this Agreement shall be construed
to create any duty to, any standard of care with reference to or any liability
to anyone not a party to this Agreement.


 


8.8. Headings. The
headings used in this Agreement are for convenience of reference only and shall
have no force or effect in the construction or interpretation of the provisions
of this Agreement.


 


8.9. Time of the Essence.
Time is of the very essence of each and all of the agreements, covenants and
conditions of this Agreement.


 


8.10. Governing Law.
This Agreement shall be deemed made, executed and entered into and shall be
governed by and construed in accordance with the internal laws of the State of
Florida.


 


8.11. Language
Construction. The language in all parts of this Agreement shall be
construed, in all cases, according to its fair meaning, and not for or against
either party hereto. The parties acknowledge that each party and its counsel
have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement.


 


8.12. Indemnification.
The PC shall indemnify, hold harmless and defend MANAGEMENT SERVICES, its
officers, directors, shareholders, employees, agents and independent
contractors (the “MANAGEMENT SERVICES Group”) from and against any and all
liabilities, losses, damages, claims, causes of action, and expenses (including
reasonable attorneys’ fees and disbursements (a “MANAGEMENT SERVICES Loss”)),
caused or asserted to have been caused, directly or indirectly, by or as a
result of the performance of medical services or any other acts or omissions by
MANAGEMENT SERVICES and/or its partners, agents, employees and/or
subcontractors (other than MANAGEMENT SERVICES) during the term hereof except
with respect to any MANAGEMENT SERVICES Loss which is the result of any gross
negligence or willful misconduct by a member of the MANAGEMENT SERVICES Group,
MANAGEMENT SERVICES shall indemnify, hold harmless and defend the PC, its


 


18

















 


officers, directors,
partners employees, agents and independent contractors (the “the PC Group”)
from and against any and all liabilities, losses, damages, claims, causes of
action, and expenses (including reasonable judgment attorneys’ fees and
disbursements) (a “the PC Loss”), caused or asserted to have been caused,
directly or indirectly, by or as a result of the performance of any acts of
omissions by MANAGEMENT SERVICES and/or its shareholders, agents, employees
and/or subcontractors during the term hereof except with respect to any the PC
Loss which is the result of any gross negligence or willful misconduct by a
member of the PC Group.


 


8.13. Entire Agreement.
This Agreement constitutes the entire agreement between the parties with respect
to the subject matter hereof and supersedes all prior and contemporaneous
agreements, understandings, negotiations and discussions, whether written or
oral, between or among parties regarding the subject matter of this Agreement.


 


8.14. Incorporation by
Reference. All exhibits and other attachments to this Agreement are
incorporated by reference into this Agreement by such reference.


 


8.15. Amendments Only in
Writing. This Agreement may not be amended or modified in any respect
whatsoever, except by an instrument in writing signed by the parties hereto.


 


8.16. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall
be considered an original and all of which shall constitute one and the same
agreement. This Agreement shall not become effective until it has been executed
by all of the parties hereto.


 


8.17. Commercial
Impracticability. No party to this Agreement shall be liable for any
failure to perform its obligations hereunder where such failure results from
any cause beyond that party’s reasonable control, including, for example, an
act of God, labor disturbance such as a strike or walkout, war, riot, fire,
storm, accident, government regulation or interference, or mechanical,
electronic or communications failure.


 


8.18. Election of
Remedies. The respective rights of the parties to this Agreement shall be
cumulative. Each party shall have all other rights and remedies consistent with
this Agreement as law and equity may provide. No exercise by any party of one
right or remedy shall he deemed to be an exclusive election of rights or
remedies.


 


8.19. Survival. The
provisions of Articles III, IV, V, VI, VII and VIII shall survive any
termination of this Agreement.


 


8.20. Third Party
Beneficiaries. Except with respect to Affiliates of MANAGEMENT SERVICES,
nothing in this Agreement shall be construed to create any duty to, any
standard of care with reference to, or any liability to any Person not a party
to this Agreement. The Affiliates of MANAGEMENT SERVICES are intended third
party beneficiaries of this Agreement.


 


19

















 


8.21 Affiliate. An “Affiliate”
of an entity means (i) any person or entity directly or indirectly controlled
by such entity; (ii) any person or entity directly or indirectly controlling
such entity; (iii) any subsidiary of such entity if the entity has a fifty
percent (50%) or greater ownership interest in the subsidiary; or (iv) such
entity’s parent entity if the parent has a fifty percent (50%) or greater ownership
interest in the entity. For purposes of this Agreement, the PC is not an
Affiliate of MANAGEMENT SERVICES.


 


IN WITNESS WHEREOF,
MANAGEMENT SERVICES and the PC have caused this Agreement to be executed by
their duly authorized respective officers as of the Effective Date.


 


Signed and sealed in the
presence of:


 


	
  /s/
  Authorized
  Signatory

  	
   

  	
  MARYLAND RADIATION THERAPY
  MANAGEMENT SERVICES, INC. 

  
	
  Printed name:

  	
  /s/ Authorized Signatory

  	
   

  	
   

  	
   

  
	
  (witness 1)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Daniel E. Dosoretz

  
	
  /s/
  Authorized Signatory

  	
   

  	
   

  	
  Daniel E. Dosoretz, M.D.

  
	
  Printed name:

  	
  /s/ Authorized Signatory

  	
   

  	
   

  	
  President

  
	
  (witness 2)

  	
   

  	
   

  	
   

  	
   

  



 


20

















 


	
  /s/ Authorized Signatory

  	
   

  	
  KATIN RADIATION THERAPY,
  P.A.

  
	
  Printed name: 

  	
  /s/ Authorized Signatory

  	
   

  	
   

  	
   

  
	
  (witness 1)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Michael J. Katin

  
	
   

  	
   

  	
   

  	
   

  	
  Michael J. Katin, M.D.

  
	
   

  	
   

  	
   

  	
   

  	
  President

  
	
  /s/
  Authorized
  Signatory

  	
   

  	
   

  	
   

  
	
  Printed name:

  	
  /s/ Authorized Signatory

  	
   

  	
   

  	
   

  
	
  (witness 2)

  	
   

  	
   

  	
   

  	
   

  



 


 


	
  STATE OF FLORIDA    )

  	
   

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY OF LEE

  	
  )

  	
   

  



 


The foregoing instrument was
acknowledged before me this 13th day of April,
1999, by Daniel E. Dosoretz, M.D., the President of Maryland Radiation Therapy
Management Services, Inc., a Maryland corporation organized under the laws of
the State of Maryland, on behalf of the corporation.


 


	
  [SEAL]

  	
   

  	
  Signature:

  	
  /s/ Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed name:

  	
  /s/ Authorized Signatory

  
	
   

  	
  Notary Public

  



 


	
  STATE
  OF FLORIDA    )

  	
   

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY
  OF LEE

  	
  )

  	
   

  



 


The foregoing instrument was
acknowledged before me this 13th day of April,
1999, by Michael J. Katin, M.D., the President of Katin Radiation Therapy,
P.A., a Maryland professional corporation organized under the laws of the State
of Maryland, on behalf of the corporation.


 


	
  [SEAL]

  	
   

  	
  Signature: 

  	
  /s/ Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed name: 

  	
  /s/ Authorized Signatory

  
	
   

  	
  Notary Public

  



 


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EXHIBIT
A


 


NONCOMPETITION
AGREEMENT


 


NON-COMPETITIVE
AND RESTRICTIVE AGREEMENTS.


 


A. During the term of this
Agreement and any renewal period, Physician shall not undertake any
professional service except as directed and authorized by [Employer] and shall
not engage in any profession other than the rendition of the professional
services as directed by [Employer].


 


B. In the event of the
termination of this Agreement for any reason, Physician agrees not to directly
or indirectly engage in the practice of radiation therapy or oncology, or
otherwise compete with [Employer], or any of its physician providers, by
practicing as a radiation therapist or oncologist (i) at any hospital in which
physician providers of [Employer] regularly admit patients, or (ii) within any
county in which [Employer] or any of its Affiliates operate an Office for a
period of two (2) years after the date of such actual termination of this
Agreement. The purpose of this covenant is to protect [Employer] from the
irreparable harm it will suffer if Physician competes with [Employer] after
having been introduced to [Employee’s personnel and patients and after learning
special medical procedures used by [Employer]’s physician providers, [Employer]’s
business procedures, office and practice policies, and the special and
confidential professional procedures developed by [Employer].


 


C. The parties agree that in
the event of any breach or attempted breach of any of the covenants set out in
section B (the “Covenant Not to Compete”), [Employer] will be entitled to
equitable relief by way of injunction or otherwise, in addition to any remedy
at law which may be available. The parties agree that any violation or
threatened violation by Physician of the Covenant Not to Compete will cause
[Employer] to suffer irreparable harm. The parties agree that [Employer]’s
remedy of an injunction is not the exclusive remedy for breach of the Covenant
Not to Compete and that a court may grant such additional relief as is
reasonable.


 


D. In the event Physician
breaches the Covenant Not to Compete in addition to the injunctive relief to
which [Employer] shall be entitled under the law, Physician shall immediately
repay to [Employer] any amounts paid by [Employer] pursuant to section 3.B
hereof after the termination of this Agreement, and all severance or
termination pay, if any, paid pursuant to this Agreement. [Employer] may offset
against any amounts owed Physician pursuant to this Agreement any amounts
Physician owes [Employer] pursuant to paragraph E below for breach of the
Covenant Not to Compete.


 


E. In addition to the
injunctive relief to which [Employer] is entitled under the law and in addition
to the payments provided for in paragraph D above and in order to compensate
[Employer] for the damages it will incur in recruiting and compensating a


 


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replacement radiation
oncologist and for the lost business it will suffer, in the event of a breach
by Physician of the Covenant Not to Compete, Physician shall also pay to
[Employer], as liquidated damages, a sum equal to a percentage of the gross
billings of [Employer] for the twelve month period immediately preceding the
termination of this Agreement. The percentage shall be that formed by dividing
the number one by the number equal to the total number of physician providers
of [Employer], including Physician, on the date of termination of this
Agreement. The parties agree that, in the event of the breach by Physician of
the Covenant Not to Compete, the actual amount of damages which would be
incurred by [Employer] would be difficult to ascertain and prove, and that
therefore the liquidated damages sum set forth herein would be reasonable and
appropriate.


 


F. In the event the Covenant
Not to Compete shall be determined by a court of competent jurisdiction to be
unenforceable by reason of its geographic or temporal restrictions being too
great, or by reason that the range of activities covered is too great, or for
any other reason, section B shall be interpreted to extend over the maximum
geographic area, period of time, range of activities or other restrictions as
to which it may be enforceable.


 


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