Termination of services letter with John Pirie


    TotalMed

    Will
      take
      it from here.

    


    November
      6, 2006

    


    Attn: John
      Pirie 

    Re: Termination
      of Services

    


    Dear
      John:

    


    This
      letter will serve as notice that TotalMed Systems, Inc. is, effective
      immediately, terminating your appointment as a Lead Generator Recruiter as
      defined in the original Letter of Intent dated September 1, 2006. As a result,
      all terms and conditions associated with the Letter of Intent are null and
      void.
      From this moment forward you are expressly prohibited from representing TotalMed
      Systems, Inc. in any capacity whatsoever, including any verbal or written
      correspondence.

    


    You
      are
      also prohibited from having any further contact with TotalMed Systems, Inc.
      employee whose functions involve administration, sales, marketing support,
      technical or training support.

    


    Any
      TotalMed Systems Inc. materials that are in your possession, including but
      not
      limited to brochures, product sheets, computer programs, ROI calculators,
      compensation plans and schedules should be returned to TotalMEd Systems Inc.
      immediately.

    


    The
      reason for the termination is due to lack of performance. During the period
      since the Letter of Intent was written, your prime directive has been to recruit
      Lead Referral Organizations within territories that can be supported by TotalMed
      Systems, Inc. These territories have been defined as Florida, Central and West
      Texas, New Mexico and Arizona. In the last sixty days, you have not successfully
      recruited one single entity in any of those areas.

    In
      addition, the organization that you presented to us as a potential Lead Referral
      Organization, based in the Chicago/South Bend geographical area as not adhered
      to the procedures associated with the Referral Organization program - the
      parameters of which you possess in written form. All attempts by our inside
      sales manager to communicate with the field representative involved have met
      with minimal success due to an almost total lack of communication from those
      representatives or their management.

    


    If
      TotalMed Systems, Inc. is successful in forming any relationship with the
      Chicago/South Bend organization, which appears to be doubtful, any revenue
      that
      results from leads generated by employees of that organization will be applied
      toward the good faith draw that TotalMed Systems, Inc. has already paid
      you.

    


    Should
      you have any questions regarding your termination, you are welcome to discuss
      them with TotalMed Systems, Inc. senior management.

    


    Sincerely,

    


    James
      Sterling

    TotalMed
      Systems, Inc.

    


    Cc:
       Brian
      Knight

    Walter
      Kravchenko

    Charles
      Farrugia

    Edward
      Zotian

    


    


    1200
      SE
      Maynard Road * Suite 203 * Cary, NC 27511 * Tel 919-388-9480 * Fax
      919-388-9483

    www.totalmed.com