Document:

EXHIBIT 10.15

                                      LEASE
                                      -----

         LEASE made as of the 1st day of January, 2005, by and between THE
SAGEMARK COMPANIES LTD., a New York corporation with offices at 1285 Avenue of
the Americas, 35th Floor, New York, New York 10019 ("Lessor") and P.E.T.
MANAGEMENT OF QUEENS, LLC, a New York limited liability company with offices at
102-02 Queens Boulevard, Forest Hills, New York 11375 ("Lessee").

                              W I T N E S S E T H :
                              ---------------------

         WHEREAS, Lessor has entered into an Agreement of Lease (the "Premises
Lease") with 102-02 Partners, LLC (the "Landlord") for premises located at
102-02 Queens Boulevard, Forest Hills, New York 11375 (the "Premises"); and

         WHEREAS, Lessor has or will enter into a Master Lease Agreement and
related loan documents (collectively, the "Loan Documents") with an independent
equipment lender (the "Equipment Lender") and will purchase a positron emission
tomography scanner (the "PET Scanner") and certain other furnishings, personal
property and ancillary equipment (collectively, the "Ancillary Equipment"), and
will make certain leasehold improvements to the Premises (the "Improvements"),
which it will, in turn, lease to Lessee for use in connection with a positron
emission tomography imaging center to be established at the Premises and
administered by Lessee (the "PET Center"); and

         WHEREAS, Lessee wishes to sublease the Premises and lease the PET
Scanner and Ancillary Equipment from Lessor, and Lessor is agreeable to doing
so, all on the terms and subject to the conditions hereinafter set forth;

         NOW, THEREFORE, in consideration of the mutual covenants herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby unconditionally acknowledged, the parties hereto do hereby agree as
follows:

         1.       Incorporation by Reference. Reference is hereby made to the
Premises Lease, the Loan Documents, that certain Turnkey License and Services
Agreement between Lessee and Premier P.E.T. of Queens, P.C. (the "Management
Agreement") and the Operating Agreement of Lessee (the "Operating Agreement")
(as the same may be hereafter amended from time to time), the terms of which are
incorporated herein by reference thereto. All capitalized terms used, but not
defined herein, shall have the meanings ascribed to them in such agreements.

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         2.       Lease; Sublease.
                  ---------------

                  2.1.     Lease. Subject to the terms of this Lease, Lessor
hereby leases the PET Scanner and the Ancillary Equipment to Lessee during the
Term hereof.

                  2.2.     Title. Nothing contained in this Lease shall give or
convey to Lessee any title or ownership interest in or to the PET Scanner or the
Ancillary Equipment and Lessee hereby acknowledges and agrees that Lessee's
rights under this Lease are subject to and subordinate to the rights of the
Equipment Lender under the Loan Documents, including, without limitation, all
rights of the Equipment Lender as a secured creditor pursuant to its first lien
and security interest in the PET Scanner and the Ancillary Equipment. Lessee
shall, at its expense, protect and defend Lessor's title to the PET Scanner and
the Ancillary Equipment.

                  2.3.     Personalty. The PET Scanner and all of the Ancillary
Equipment leased under this Lease (excluding any leasehold improvements affixed
to the Premises and deemed a part thereof under the Premises Lease) is tangible
personal property and none of the same will be deemed a fixture affixed to or
forming a part of the Premises.

                  2.4.     Disclaimer. Lessee acknowledges that Lessor disclaims
any warranty or representation whatsoever with respect to the PET Scanner and
all items of Ancillary Equipment, including all implied warranties of
merchantability and fitness for a particular purpose and any representation or
warranty that any item thereof is in good operating order, repair and condition
and/or suitable for use in the operation of the PET Center. In addition, Lessee
is accepting the Premises "as is", without any representation or warranty from
Lessor with respect thereto. IN NO EVENT, NOTWITHSTANDING ANY PROVISION OF THIS
LEASE OR ANY OTHER AGREEMENT TO THE CONTRARY, SHALL LESSOR BE LIABLE FOR ANY
LOSS OF USE, REVENUE, ANTICIPATED PROFITS OR SPECIAL, INDIRECT, INCIDENTAL OR
CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS LEASE WITH
RESPECT TO THE USE, PERFORMANCE OR MAINTENANCE OF ANY OF SUCH EQUIPMENT. If the
PET Scanner or any item of Ancillary Equipment is not properly installed, does
not operate as represented or warrantied by the manufacturer, vendor and/or
service company and/or is unsatisfactory for any reason, Lessee shall make any
claim on account thereof solely against the vendor or manufacturer thereof
and/or the service company therefor and shall nevertheless pay Lessor all
amounts payable under this Lease and shall not assert any of such claims as a
defense, counterclaim, deduction, setoff or otherwise against Lessor or any
amounts due under this Lease.

                  2.5.     Warranties. Lessor hereby agrees to transfer to
Lessee all transferrable warranties, service agreements and guarantees relating
to the PET Scanner (collectively, the "Equipment Warranties") and, upon the
request of Lessee and at Lessee's expense, enforce all of such Equipment
Warranties to the extent they are not transferrable.

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<PAGE>

                  2.6.     Sublease. Lessor hereby subleases the Premises to
Lessee during the Term hereof. Lessee hereby acknowledges and agrees that
Lessee's rights under this Sublease are subject to and subordinate to the rights
of the Landlord under the Premises Lease.

         3.       Term. This Lease is effective as of June 1, 2004 and will
terminate on May 31, 2004 (the "Term").

         4.       Rent.
                  ----

                  4.1.     Equipment Rent. Lessee shall pay to Lessor, as rent
for the lease of the PET Scanner and Ancillary Equipment hereunder, an amount
equal to all debt service and other payments, sums and charges due to the
Equipment Lender under the Loan Documents (the "Equipment Rent"). The Equipment
Rent will be due and payable on each date in each month during the Term hereof
that Lessor is required to pay any such debt service, payments, sums and other
charges to the Equipment Lender under the Loan Documents, until such time as
Lessor's obligations to the Equipment Lender under the Loan Documents have been
fully satisfied.

                  If, at any time during the Term of this Lease, Lessor and the
Equipment Lender change the terms of the debt service relating to the sums
borrowed by Lessor to finance its purchase of the PET Scanner and the Ancillary
Equipment, the Equipment Rent shall be adjusted (commencing on the date that any
such change becomes effective) by an amount equal to any such modified debt
service.

                  All payments of Equipment Rent (and other amounts payable by
Lessee under this Lease) shall be paid to Lessor by check at the address of
Lessor set forth in Section 12.2 hereof, or at such other address as Lessor
shall designate in writing to Lessee at least five (5) business days prior to
the due date thereof. All payments of Equipment Rent (and other amounts due
under this Lease) shall be paid to Lessor without any deduction, reduction,
abatement or set-off unless otherwise agreed to in writing by Lessor.

                  4.2.     Premises Rent. Lessee shall pay to Lessor, as rent
for the sublet of the Premises hereunder, an amount equal to, but not more than,
the rent as defined in and payable by Lessor to the Landlord under the Premises
Lease (the "Premises Rent"). The Premises Rent will be due and payable monthly,
in advance, on the first day of each month during the Term hereof (or as
otherwise provided under the Premises Lease).

                  All payments of Premises Rent (and other amounts payable by
Lessee under this Sublease) shall be paid to Lessor in the same manner as
provided in Section 4.1 above with respect to Equipment Rent, without any
deduction, reduction, abatement or set-off, unless otherwise agreed to in
writing by Lessor.

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<PAGE>

                  4.3.     Additional Premises Rent. Lessee hereby acknowledges
and agrees that, in addition to the Premises Rent payable under this Lease,
Lessee shall pay to Lessor any and all other charges and amounts due and payable
by Lessor to the Landlord under the Premises Lease (the "Additional Premises
Rent"), within seven (7) days after Lessee's receipt of notice from Lessor
(which notice will be accompanied by evidence of such additional charges and
amounts).

                  4.4.     Buy-Out. Lessee shall have the right, at such time as
the Equipment Rent has been fully paid, to purchase the PET Scanner from Lessor
for the sum of $1.00 and all other direct costs incurred by Lessor in connection
with the transfer of title to the PET Scanner from Lessor to Lessee.

         5.       Covenants; Obligations.
                  ----------------------

                  5.1.     Use. Lessee shall use the PET Scanner and all items
of Ancillary Equipment solely on the Premises and in connection with the
operation of a PET Center. Lessee shall, at its cost, protect the PET Scanner
and all items of Ancillary Equipment from and against all damage and
deterioration, other than normal wear and tear and will, at all times during the
Term hereof, use and operate the PET Scanner and all items of Ancillary
Equipment in accordance with all applicable manufacturer and/or vendor manuals,
instructions and/or warranties and service agreements, and otherwise in
accordance with all applicable laws, rules and regulations.

                  5.2.     Maintenance. Lessee shall maintain and repair the PET
Scanner and all items of Ancillary Equipment by fully qualified and authorized
personnel and in compliance with all applicable warranties and service
agreements, and manufacturer and/or vendor manuals or instructions and shall be
solely responsible for all loss or damage thereto which is sustained during the
Term hereof, except for any loss or damage caused by any intentional act of
Lessor with respect thereto. Upon request of Lessor, Lessee shall, at reasonable
times during normal business hours, make the PET Scanner and/or any item of
Ancillary Equipment available to Lessor (or to the Landlord and/or Equipment
Lender) for inspection and shall make Lessee's repair and maintenance records
with respect to the PET Scanner, Ancillary Equipment and the Premises available
to such parties.

                  5.3.     Loan Document Compliance. Lessee shall operate the
PET Scanner and all items of Ancillary Equipment, and will conduct its
operations on the Premises, in accordance with all applicable provisions and
requirements under the Premises Lease and the Loan Documents.

                  5.4.     Identification. Lessee will, upon the written request
of Lessor, affix plates or other markings indicating the interest of Lessor
and/or the Equipment Lender and/or the Landlord on the PET Scanner and/or on any
item of Ancillary Equipment and/or in the Premises.

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                  5.5.     Removal. Lessee shall not remove the PET Scanner or
any item of Ancillary Equipment from the Premises during the Term of this Lease,
or allow or permit any such removal, except as provided under the Loan
Documents.

                  5.6.     Prohibitions. Lessee shall not, at any time during
the Term hereof, (i) use, operate or locate the PET Scanner or any item of
Ancillary Equipment in any area excluded from coverage by any insurance required
under this Lease, (ii) abandon the PET Scanner and/or any item of Ancillary
Equipment or alter the same, (iii) affix or install any accessory, equipment or
device on the PET Scanner or on any item of the Ancillary Equipment if such is
not readily removable or will otherwise impair the originally intended function
or use of such equipment or is otherwise in violation of any product warranty or
any product operating manual, or (iv) make any distributions of net profits to
its members upon notice from Licensor after an Event of Default (hereinafter
defined) by Lessee hereunder.

                  5.7.     Premises Lease Compliance. Lessee acknowledges that
it has received a copy of the Premises Lease and will, at its cost and expense,
comply with all obligations and covenants provided for thereunder as if it were
the Tenant thereunder (including all such obligations and covenants thereunder
that Lessor shall notify Lessee of, in writing, from time to time during the
Term hereof). Lessee will conduct its operations on the Premises in accordance
with all applicable provisions and requirements under the Premises Lease.

                  5.8.     Access. Upon request of Lessor, Lessee shall, at
reasonable times during normal business hours, make the Premises, PET Scanner
and Ancillary Equipment available to Lessor (or to the Equipment Lender or
Landlord) for inspection or as otherwise requested by the Landlord or Equipment
Lender in accordance with the provisions of the Premises Lease and/or the Loan
Documents.

                  5.9.     Encumbrances. Neither Lessor nor Lessee shall sell,
transfer, assign, sublet, pledge or otherwise encumber any interest in this
Lease and/or in the Premises and/or in the PET Scanner and/or in any item of
Ancillary Equipment (except as provided in Section 9.1 hereof or as otherwise
provided in or required under the Loan Documents) and each of Lessor and Lessee
agrees to keep the same free from any liens, claims and encumbrances. Each of
Lessor and Lessee shall promptly notify the other of any such lien, claim or
encumbrance.

         6.       Risk of Loss; Insurance.
                  -----------------------

                  6.1.     Risk of Loss. Lessee agrees that it shall bear all
risk of loss, damage to, or destruction to the Premises, PET Scanner and all
items of Ancillary Equipment and shall give Lessor prompt notice of any damage
to or loss thereof. In the event of any damage to any of such equipment, Lessee
shall immediately place such items in good repair (with no abatement of any rent
or other sums due under this Lease) with the proceeds of any insurance recovery
applied to the cost of such repair. If any such equipment is lost, stolen,
destroyed, worn out, damaged beyond repair, confiscated or seized, Lessee shall
replace the same with like equipment in the same condition as the equipment
being replaced (with no abatement of any rent or other amounts due under this
Lease).

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                  6.2.     Insurance. Lessee shall maintain, at its cost, all
insurance coverages requested by Lessor, all of which shall name Lessor as an
additional insured as its interests may appear and provide for thirty (30) days
prior notice to Lessor of any cancellation, termination or modification thereof.
Lessee shall provide Lessor, upon request, with evidence of the maintenance of
such insurance throughout the Term of this Lease.

         7.       Representations and Warranties of Lessor. Lessor hereby
represents and warrants to Lessee the following:

                  7.1.     Good Standing. Lessor is a corporation, duly
organized, validly existing, and in good standing under the laws of the State of
New York and has all requisite power and authority to own and lease its
properties, to carry on its business as currently conducted and as proposed to
be conducted and to consummate the transactions contemplated hereby. Lessor is
duly qualified as a foreign corporation and is in good standing in all such
other jurisdictions in which the current conduct of its business or its
ownership or leasing of property requires such qualification and in which the
failure so to qualify or so to be in good standing would have a materially
adverse effect on Lessor's operations or financial condition.

                  7.2.     Requisite Action. All action on the part of Lessor
necessary for the authorization, execution, delivery and performance of this
Lease and the consummation of the transactions contemplated hereby, has been
properly taken and obtained by it and this Lease constitutes a valid and legally
binding obligation of Lessor enforceable in accordance with its terms, except as
the same may be limited by bankruptcy, insolvency, reorganization, moratorium,
or other laws affecting generally the enforcement of creditors' rights and by
general principles of equity.

                  7.3.     No Conflict. The authorization, execution, delivery
and performance of this Lease and the consummation of the transactions
contemplated hereby and thereby will not result in any violation of or be in
conflict with or constitute, with or without the passage of time or giving of
notice, or both, a breach or default under any instrument, judgment, order,
writ, decree or agreement to which Lessor is a party or by which it is bound.

         8.       Representations and Warranties of Lessee. Lessee hereby
represents and warrants to Lessor the following:

                  8.1.     Good Standing. Lessee is a limited liability company,
duly organized, validly existing, and in good standing under the laws of the
State of New York and has all requisite power and authority to own and lease its
properties, to carry on its business as currently conducted and as proposed to
be conducted and to carry out the transactions contemplated hereby. Lessee is

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duly qualified as a foreign limited liability company and is in good standing in
all such other jurisdictions in which the current conduct of its business or its
ownership or leasing of property requires such qualification and in which the
failure so to qualify or so to be in good standing would have a materially
adverse effect on Lessee's operations or financial condition.

                  8.2.     Requisite Action. All action on the part of Lessee
necessary for the authorization, execution, delivery and performance of this
Lease and the consummation of the transactions contemplated hereby, has been
properly taken and obtained by it and this Lease constitutes a valid and legally
binding obligation of Lessee enforceable in accordance with its terms, except as
the same may be limited by bankruptcy, insolvency, reorganization, moratorium,
or other laws affecting generally the enforcement of creditors' rights and by
general principles of equity.

                  8.3.     No Conflict. The authorization, execution, delivery
and performance of this Lease and the consummation of the transactions
contemplated hereby and thereby will not result in any violation of or be in
conflict with or constitute, with or without the passage of time or giving of
notice, or both, a breach or default under any instrument, judgment, order,
writ, decree or agreement to which Lessee is a party or by which it is bound.

         9.       Assignment and Sublet.
                  ---------------------

                  9.1.     Permitted Use. Lessor hereby agrees that Lessee shall
have the right to make the Premises, the PET Scanner and all items of Ancillary
Equipment available to Premier P.E.T. of Queens, P.C. (the "PC") by assignment,
sublet, license, permit or similar arrangement, provided that the PC agrees, in
writing, to comply with and be bound by the provisions of this Lease and the
Premises Lease and utilizes the Premises, PET Scanner and Ancillary Equipment
solely for the operation of a positron emission tomography diagnostic imaging
center on the Premises (except that, under no circumstances will the PC have any
obligation to pay rent, additional rent, or other sums due thereunder). Lessor
hereby consents to the Management Agreement.

                  9.2.     Non-Assignability. Lessee shall not have the right to
otherwise assign this Lease or any of Lessee's interest herein, or to sublet the
Premises, in the absence of Lessor's prior written consent, except as required
under the Loan Documents.

         10.      Events of Default.
                  -----------------

                  10.1.    The following occurrences shall constitute events of
default under this Lease ("Events of Default"):

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                  (a)      Default by Lessee in the payment of any installment
         of Equipment Rent, Premises Rent, or Additional Premises Rent, or other
         charge or amount payable by Lessee hereunder, as and when the same
         becomes due and payable, provided Lessee receives notice thereof from
         Lessor and does not cure such default within ten (10) days after such
         notice (or any such shorter period of time, if any, that Lessor is
         required to make payments of rent, debt service and other sums and
         charges due under the Premises Lease and Loan Documents); or

                  (b)      Breach by Lessor or Lessee of any of their respective
         representations, warranties, covenants or obligations under this Lease;
         provided Lessor or Lessee, as applicable, receives notice thereof and
         fails to cure any such breach within thirty (30) days after such
         notice; or

                  (c)      Upon notice from Lessor, if the Premises Lease is
         terminated or there is an uncured event of default (as defined in the
         Loan Documents) under the Loan Documents.

                  10.2.    Remedies. Upon the occurrence of any one or more
Events of Default, Lessor or Lessee, as applicable, may, at their option:

                  (a)      Terminate this Lease and, if Lessee breaches or is in
         default of this Lease, Lessor may require Lessee to immediately vacate
         the Premises (likewise, if Lessee elects to terminate this Lease,
         Lessee will immediately vacate the Premises); and/or

                  (b)      Proceed by appropriate court action, either at law or
         in equity, to enforce performance by Lessor or Lessee, as applicable,
         of the terms and provisions of this Lease and/or to recover from Lessor
         or Lessee, as applicable, any and all reasonable damages or expenses,
         including attorneys' fees, costs and expenses, which Lessor or Lessee,
         as applicable, shall have sustained by reason of any such breach or
         default by Lessor or Lessee, as applicable, or pursue any other
         available legal or equitable remedy; and/or

                  (c)      Lessor may take possession of and remove the PET
         Scanner and any or all items of Ancillary Equipment, without demand or
         notice, wherever the same may be located, or in lieu of removing any or
         all such items of equipment, make such changes therein at the Premises
         so as to prevent the use thereof by Lessee during the continuation of
         any default by Lessee hereunder, all without any court order or other
         process of law. Lessee hereby waives any and all damage occasioned by
         such taking of possession or making of changes. Any such taking of
         possession or making of such changes shall not constitute a termination
         of this Lease as to any or all items of such equipment, unless Lessor
         expressly so notifies Lessee in writing; and/or

                  (d)      Demand that Lessee return the PET Scanner, and all
         items of Ancillary Equipment, as, when and where directed by Lessor;
         and/or

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                  (e)      Demand that Lessee pay all expenses in connection
         with the re-letting of the Premises and retaking of the PET Scanner and
         the Ancillary Equipment.

Notwithstanding any such taking of possession, or any other action which Lessor
may take after an Event of Default, Lessee shall be and remain liable for the
full performance of all obligations on its part to be performed under this
Lease.

         11.      Indemnification.
                  ---------------

                  11.1.    Indemnification. Lessee shall, at all times during
the Term of this Lease and subsequent thereto, defend, indemnify, and hold
Lessor and its subsidiaries and affiliates and their respective officers,
directors, shareholders, employees and agents (collectively, "Indemnitees")
harmless from and against all claims, causes of action, proceedings, demands,
liabilities, damages, costs, and expenses (including all legal fees and
expenses) (collectively, the "Losses") incurred by Indemnitees (including all
Losses under the Loan Documents), which result from or are based upon any use by
Lessee or any assignee or sublessee of Lessee (including, without limitation,
the PC) of the Premises, the PET Scanner or Ancillary Equipment, or breach of
the Premises Lease by any of them, after the date hereof.

                  11.2.    No Liability. Notwithstanding the foregoing, Lessee
shall not have any liability for indemnification under this Section 11 in the
event that (a) Lessor settles or otherwise disposes of any matter for which it
would otherwise be entitled to indemnification hereunder without the written
consent of Lessee, or (b) any such Losses are caused by any act or omission of
Premier.

                  11.3.    Non-Exclusivity. The indemnification provided for in
this Section shall not be an exclusive remedy for any breach or default by
Lessee of the provisions of this Lease.

                  11.4.    Contribution. In the event that the indemnification
provided for under this Section is unavailable to Lessor in respect of any Loss,
Lessee shall, in lieu of indemnifying Lessor, contribute to the amount paid or
payable by Lessor as a result of any such Loss in such proportion as is
appropriate to reflect the relative fault of such parties in connection with the
matters giving rise to any such Loss.

                  11.5.    Survival. This Section shall survive the Term of this
Lease.

         12.      Miscellaneous.
                  -------------

                  12.1.    Sole and Entire Agreement. This Lease constitutes the
sole and entire agreement between the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements, representations, warranties,
statements, promises, information, arrangements and understandings, whether oral
or written, express or implied, between the parties hereto with respect to the
subject matter hereof and may not be changed or modified except by an instrument

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in writing signed by the party to be bound thereby. No course of conduct or
dealing or trade usage or custom or course of performance by the parties hereto
shall constitute or be relied upon as a modification, supplement, or waiver of
any provision of this Lease. This Lease has been subject to the mutual
consultation, negotiation and agreement of the parties hereto and shall not be
construed for or against either party hereto on the basis of such party having
drafted this Lease.

                  12.2.    Notices. All notices, consents, requests, demands and
other communications required or permitted to be given under this Lease (the
"Notices") shall be in writing and delivered personally, receipt acknowledged,
or mailed by registered or certified mail, postage prepaid, return receipt
requested, addressed to the parties hereto as follows (or to such other
addresses as either of the parties hereto shall specify by notice given in
accordance with this provision):

                  (a)      If to Lessor:

                           The Sagemark Companies Ltd.
                           1285 Avenue of the Americas, 35th Floor
                           New York, New York 10019
                           Attn: Theodore B. Shapiro, Chief Executive Officer

                           - and -

                           Premier P.E.T. Imaging International, Inc.
                           2300 Glades Road, Suite 100W
                           Boca Raton, FL 33431
                           Attn: Mr. George W. Mahoney, Chief Financial Officer

                           with a copy to:

                           Robert L. Blessey, Esq.
                           51 Lyon Ridge Road
                           Katonah, New York 10536

                  (b) If to Lessee:

                           P.E.T. Management of Queens, LLC
                           102-02 Queens Boulevard
                           Forest Hills, New York 11375
                           Attn: Stephen A. Schulman, M.D., Manager

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<PAGE>

All such Notices shall be deemed given when personally delivered as aforesaid,
or, if mailed as aforesaid, on the third business day after the mailing thereof
or on the day actually received, if earlier, except for a notice of a change of
address which shall be effective only upon receipt.

                  12.3.    Non-Assignability. Neither party hereto may assign
this Lease or its or their respective rights, benefits or obligations hereunder
without the written consent of the other party hereto, except as provided in
Section 9.1 and except that Lessor may assign its rights to payments under this
Lease upon notice to Lessee.

                  12.4.    Binding Effect. This Lease shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns. Nothing contained in this Lease is intended to confer upon
any person or entity, other than the parties hereto, or their respective
successors or permitted assigns, any rights, benefits, obligations, remedies or
liabilities under or by reason of this Lease.

                  12.5.    Waiver. No waiver of any provision of this Lease or
of any breach thereof shall be effective unless in writing and signed by the
party to be bound thereby. The waiver by either party hereto of a breach of any
provision of this Lease, or of any representation, warranty, obligation or
covenant in this Lease by the other party hereto, shall not be construed as a
waiver of any subsequent breach or of any other provision, representation,
warranty, obligation or covenant of such other party, unless the instrument of
waiver expressly so provides.

                  12.6.    Governing Law. This Lease shall be governed by and
construed in accordance with the laws of the State of New York with respect to
contracts made and to be fully performed therein, without regard to the
conflicts of laws principles thereof. The parties hereto hereby agree that any
suit or proceeding arising under this Lease, or in connection with the
consummation of the transactions contemplated hereby, shall be brought solely in
a Federal or state court located in New York County, or in any court of
competent jurisdiction selected by Lessor, except for any suit or proceeding
seeking an equitable remedy hereunder which may be brought in any court of
competent jurisdiction. By its execution hereof, Lessee hereby consents and
irrevocably submits to the in personam jurisdiction of the Federal and state
courts located in New York County (or any such other court of competent
jurisdiction) and agrees that any process in any suit or proceeding commenced in
such courts under this Lease may be served upon it personally or by certified or
registered mail, return receipt requested, or by Federal Express or other
courier service, with the same force and effect as if personally served upon it
in New York County (or in the City or County in which such other court is
located). The parties hereto each waive any claim that any such jurisdiction is
not a convenient forum for any such suit or proceeding and any defense of lack
of in personam jurisdiction with respect thereto. Nothing in this Section shall
affect the right of Lessor to serve legal process in any other manner permitted
by law or affect the right of Lessor to bring any action or proceeding against
Lessee or any of its properties in the courts of other jurisdictions to the
extent otherwise permitted by law.

                  12.7.    Further Assurances. The parties hereto hereby agree
that, at any time and from time to time after the date hereof, upon the
reasonable request of either party hereto, they shall do, execute, acknowledge

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and deliver, or cause to be done, executed, acknowledged and delivered, such
further acts, deeds, assignments, transfers, conveyances, and assurances as may
be reasonably required to more effectively consummate this Lease and the
transactions contemplated thereby or to confirm or otherwise effectuate the
provisions of this Lease (including, without limitation, the buy-out provisions
of Section 4.5 hereof).

                  12.8.    Expenses. Except as expressly provided in this Lease,
each of the parties hereto shall bear all of its or their respective costs and
expenses incurred in connection with the negotiation, preparation, execution,
consummation, performance and/or enforcement of this Lease, including, without
limitation, the fees and disbursements of their respective counsel, financial
advisors and accountants. Notwithstanding the foregoing, (a) in consideration of
Lessor borrowing the capital necessary to purchase and lease the PET Scanner and
Ancillary Equipment to Lessee hereunder and to make improvements to the Premises
for the benefit of Lessee and for otherwise assuming the risk in connection with
such financing transaction, Lessee hereby agrees that it will reimburse Lessor
for fifty percent (50%) of the legal fees and disbursements incurred in
connection with the negotiation and consummation of the Loan Documents, and (b)
in the event of any action or proceeding instituted by either party hereto to
enforce the provisions of this Lease, the party prevailing therein shall be
entitled to reimbursement by the other breaching party(ies) of the legal costs
and expenses incurred by the prevailing party in connection therewith. Lessee
hereby acknowledges that Robert L. Blessey, Esq., Lessor's counsel, drafted this
Agreement on behalf of Lessor and Lessee waives any conflict of interest with
respect thereto inasmuch as Robert L. Blessey, Esq. has also acted as counsel to
Lessee on transactions unrelated to this Lease.

                  12.9.    Counterparts. This Lease may be executed in one or
more counterparts, each of which, when executed and delivered, shall be deemed
an original, but all of which when taken together, shall constitute one and the
same instrument.

                  12.10.   Headings. The Section headings used in this Lease
have been used for convenience of reference only and are not to be considered in
construing or interpreting this Lease.

                  12.11.   Partial Invalidity. If one or more provisions of this
Lease are held to be unenforceable under applicable law, such provision(s) shall
be excluded from this Lease and the balance of this Lease shall remain in full
force and effect.

                  12.12.   Cumulative Remedies. No remedy set forth in this
Lease is exclusive of any other available remedy or remedies, whether legal or
equitable, but each remedy is cumulative and in addition to every other right or
remedy given under this Lease or now or hereafter existing at law or in equity
or by statute. The parties hereto may pursue their rights and remedies
concurrently or in any sequence and no exercise of one right or remedy shall be
deemed to be an election. No delay by either party hereto shall constitute a
waiver, election or acquiescence by such party.

                  12.13.   Grammar. Unless the context of this Lease clearly
requires otherwise, the plural includes the singular, the singular includes the
plural, the part includes the whole, "including" is not limiting, and "or" has
the inclusive meaning of the phrase "and/or". The words "hereof", "herein",
"hereby", "hereunder" and other similar terms in this Lease refer to this Lease
as a whole and not exclusively to any particular provision of this Lease.

                                       12
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
and seals as of the day and year first above written.

WITNESS:                               THE SAGEMARK COMPANIES LTD.

/s/ SANDRA GORMAN                      By: /s/ THEODORE B. SHAPIRO
--------------------------------           -------------------------------------
Sandra Gorman                              Theodore B. Shapiro,
                                           Chief Executive Officer

WITNESS:                               P.E.T. MANAGEMENT OF QUEENS, LLC

/s/ SANDRA GORMAN                      By: /s/ STEPHEN A. SCHULMAN
--------------------------------           -------------------------------------
Sandra Gorman                              Stephen A. Schulman, M.D., Manager

                                       13EXHIBIT 10.16

                            INDEMNIFICATION AGREEMENT

         This INDEMNIFICATION AGREEMENT, dated as of January 2, 2003, by and
between THE SAGEMARK COMPANIES LTD., a corporation organized under the laws of
the State of New York (the "Corporation"), with its principal office located at
1285 Avenue of the Americas, New York, New York 10022 and THEODORE B. SHAPIRO,
STEPHEN A. SCHULMAN, M.D., ROBERT L. BLESSEY, EDWARD D. BRIGHT, ABDALLAH S.
MISHRICK and GEORGE W. MAHONEY, individuals with an address at c/o Premier
P.E.T. Imaging International, Inc., 2300 Glades Road, Suite 100W, Boca Raton,
Florida 33431(each an "Indemnitee" and collectively, the "Indemnitees").

         WHEREAS, the substantial increase in corporate litigation subjects
directors and officers of corporations and others to expensive litigation risks
at the same time that the availability of competent and qualified directors,
officers, employees, consultants, advisers and agents has been greatly reduced,
and the coverage offered by director's and officer's liability insurance has
been severely limited;

         WHEREAS, Indemnitees do not regard the protection available under the
Corporation's Articles of Incorporation, By-Laws and professional liability
insurance as adequate in the present circumstances and are not willing to serve
as officers and/or directors of the Corporation without adequate protection, and
the Corporation desires Indemnitees to serve in such capacities;

         WHEREAS, as a condition to the Indemnitees' agreement to continue to
serve as officers and/or directors of the Corporation, each of the Indemnitees
requires that he be indemnified from liability to fullest extent permitted by
law; and

         WHEREAS, the Corporation is willing to indemnify each of the
Indemnitees to the fullest extent permitted by law in order to retain the
services of the Indemnitees.

         NOW, THEREFORE, for and in consideration of the mutual promises and
covenants herein, the Corporation and the Indemnitees agree as follows:

                                    SECTION 1
                                    ---------

                 MANDATORY INDEMNIFICATION IN PROCEEDINGS OTHER
                THAN THOSE BY OR IN THE RIGHT OF THE CORPORATION
                ------------------------------------------------

         Subject to Section 5 hereof, the Corporation shall defend, indemnify
and hold harmless each Indemnitee from and against any and all claims, damages,
costs, expenses (including attorneys' fees), judgments, penalties, fines
(including excise taxes assessed with respect to an employee benefit plan),
settlements, and all other obligations or liabilities incurred or paid by him in
connection with the investigation, defense, prosecution, settlement or appeal of
any threatened, pending or completed legal action, suit or proceeding, whether

                                       1
<PAGE>

civil, criminal, administrative, or investigative (other than a legal action or
proceeding by or in the right of the Corporation) and to which an Indemnitee was
or is a party or is threatened to be made a party by reason of the fact that the
Indemnitee is or was an officer, director, shareholder, employee, consultant,
adviser or agent of the Corporation, or is or was serving at the request of the
Corporation as an officer, director, partner, trustee, employee, adviser or
agent of another corporation (including subsidiaries of the Corporation),
partnership, joint venture, trust, employee benefit plan or other enterprise, or
by reason of anything done or not done by an Indemnitee in any such capacity or
capacities, provided that the Indemnitee acted in good faith and in a manner the
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Corporation, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful.

                                    SECTION 2
                                    ---------

                    MANDATORY INDEMNIFICATION IN PROCEEDINGS
                      BY OR IN THE RIGHT OF THE CORPORATION
                      -------------------------------------

         Subject to Section 5 hereof, the Corporation shall defend, indemnify
and hold harmless each Indemnitee from and against any and all claims, damages,
costs, expenses (including attorneys' fees), judgments, penalties, fines,
obligations, liabilities and amounts incurred or paid by him in connection with
the investigation, defense, prosecution, settlement or appeal of any threatened,
pending or completed legal action, suit or proceeding by or in the right of the
Corporation to procure a judgment in its favor, whether civil, criminal,
administrative or investigative, and to which the Indemnitee was or is a party
or is threatened to be made party by reason of the fact that the Indemnitee is
or was an officer, director, shareholder, employee, consultant, adviser, or
agent of the Corporation, or is or was serving at the request of the Corporation
as an officer, director, partner, trustee, employee adviser or agent of another
corporation (including subsidiaries of the Corporation), partnership, joint
venture, trust, employee benefit plan or other enterprise, or by reason of
anything done or not done by an Indemnitee in any such capacity or capacities,
provided that (i) the Indemnitee acted in good faith and in a manner the
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Corporation and (ii) no indemnification shall be made under this Section 2
in respect of any claim, issue or matter as to which the Indemnitee shall have
been adjudged to be liable to the Corporation for misconduct in the performance
of his duty to the Corporation unless, and only to the extent that, the court in
which such proceeding was brought (or any other court of competent jurisdiction)
shall determine upon application that, despite the adjudication of liability but
in view of all the circumstances of the case, the Indemnitee is fairly and
reasonably entitled to indemnity for such costs, expenses and other amounts
which such court shall deem proper.

                                       2
<PAGE>

                                    SECTION 3
                                    ---------

                   MANDATORY INDEMNIFICATION AGAINST EXPENSES
                            INCURRED WHILE TESTIFYING
                            -------------------------

         Subject to Section 5 hereof, the Corporation shall indemnify each
Indemnitee against all costs and expenses (including attorneys' fees) incurred
or paid by the Indemnitee as a result of providing testimony in any legal action
or proceeding, whether civil, criminal, administrative or investigative
(including but not limited to any legal action or proceeding by or in the right
of the Corporation to procure judgment in its favor), by reason of the fact that
the Indemnitee is or was an officer, director, shareholder, employee,
consultant, adviser or agent of the Corporation, or is or was serving at the
request of the Corporation as an officer, director, partner, trustee, employee,
adviser or agent of another corporation (including subsidiaries of the
Corporation), partnership, joint venture, trust, employee benefit plan or other
enterprise.

                                    SECTION 4
                                    ---------

                       REIMBURSEMENT OF EXPENSES FOLLOWING
                           ADJUDICATION OF NEGLIGENCE
                           --------------------------

         The Corporation shall reimburse each Indemnitee for all costs and
expenses (including attorneys' fees) and amounts incurred or paid by him in
connection with the investigation, defense, settlement or appeal of any legal
action or proceeding described in Section 2 hereof that results in an
adjudication that the Indemnitee was liable for negligence, gross negligence or
recklessness (but not willful misconduct) in the performance of his duty to the
Corporation; provided, however, that the Indemnitee acted in good and in a
manner he believed to be in the best interests of the Corporation.

                                    SECTION 5
                                    ---------

                        AUTHORIZATION OF INDEMNIFICATION
                        --------------------------------

         5.1.     Any indemnification under Sections 1, 2 and 3 hereof (unless
ordered by a court), and any reimbursement made under Section 4 hereof, shall be
made by the Corporation only as authorized in the specific case upon a
determination (the "Determination") that indemnification or reimbursement of the
Indemnitee is proper in the circumstances because the Indemnitee has met the
applicable requirements set forth in Sections 1, 2, 3 and 4 hereof, as the case
may be. Subject to Sections 6.6, 6.7 and 9 of this Agreement, the Determination
shall be made in the following order of preference:

                  (1)      first, by the Corporation's Board of Directors (the
                           "Board") by majority vote or consent of a quorum
                           consisting of directors ("Disinterested Directors")
                           who are not, at the time of the Determination, named
                           parties to such legal action, suit, or proceeding; or

                                       3
<PAGE>

                  (2)      next, if such quorum of Disinterested Directors
                           cannot be obtained, by majority vote or consent of a
                           committee duly designated by the Board (in which
                           designation of all directors, whether or not
                           Disinterested Directors, may participate) consisting
                           solely of two or more Disinterested Directors; or

                  (3)      next, if such a committee cannot be designated, by
                           any independent legal counsel (who may be any outside
                           counsel regularly employed by the Corporation) in a
                           written opinion; or

                  (4)      next, if such legal counsel determination cannot be
                           obtained, by vote or consent of the holders of a
                           majority of the Corporation's common stock.

         5.2.     No Presumptions. The termination of any legal action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a presumption that
the Indemnitee did not act in good faith and in a manner that he reasonably
believed to be in or not opposed to the best interests of the Corporation, and
with respect to any criminal action or proceeding, had reasonable cause to
believe that his conduct was not unlawful.

         5.3.     Benefit Plan Conduct. The Indemnitee's conduct with respect to
an employee benefit plan for a purpose he reasonably believed to be in the
interests of the participants in and beneficiaries of the plan shall be deemed
to be conduct that the Indemnitee reasonably believed to be not opposed to the
best interests of the Corporation.

         5.4.     Reliance a Safe Harbor. For purposes of any Determination
hereunder, the Indemnitee shall be deemed to have acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best interests of
the Corporation, or, with respect to any criminal action or proceeding, to have
had no reasonable cause to believe his conduct was unlawful, if his action is
based on (i) the records or books of account of the Corporation or another
enterprise, including financial statements, (ii) information supplied to him by
the officers of the Corporation or another enterprise in the course of their
duties, (iii) the advice of legal counsel for the Corporation or another
enterprise, or (iv) information or records given or reports made to the
Corporation or another enterprise by an independent certified public accountant
or by an appraiser or other expert selected with reasonable care by the
Corporation or another enterprise. The term "another enterprise" as used in this
Section 5.3 shall mean any other corporation (including subsidiaries of the
Corporation) or any partnership, joint venture, trust, employee benefit plan or
other enterprise of which the Indemnitee is or was serving at the request of the
Corporation as an officer, director, partner, trustee, employee, adviser or
agent. The provisions of this Section 5.3 shall not be deemed to be exclusive or
to limit in any way the other circumstances in which an Indemnitee may be deemed
to have met the applicable standard of conduct set forth in Section 1, 2, or 4
hereof, as the case may be.

                                       4
<PAGE>

         5.5.     Success on Merits or Otherwise. Notwithstanding any other
provision of this Agreement, to the extent that an Indemnitee has been
successful on the merits or otherwise in defense of any action, suit, or
proceeding described in Section 1 or 2 hereof, or in defense of any claim, issue
or matter therein, he shall be indemnified against all costs and expenses
(including attorneys' fees) incurred by him in connection with the
investigation, defense, settlement or appeal thereof. For purposes of this
Section 5.4, the term "successful on the merits or otherwise" shall include, but
not be limited to, (i) any termination, withdrawal, or dismissal (with or
without prejudice) of any claim, action, suit or proceeding against the
Indemnitee without any express finding of liability or guilt against him, or
(ii) the expiration of 120 days after the making of any claim or threat of an
action, suit or proceeding without the institution of the same and without any
promise or payment made to induce a settlement.

         5.6.     Partial Indemnification or Reimbursement. If the Indemnitee is
entitled under any provision of this Agreement to indemnification and/or
reimbursement by the Corporation for some or a portion of the claims, damages,
expenses (including attorneys' fees), judgments, penalties, fines or amounts
paid in settlement by the Indemnitee in connection with the investigation of,
defense of, settlement of, appeal of our testimony provided with respect to any
action or proceeding specified in Section 1, 2, or 3 hereof, but not, however,
for the total amount thereof, the Corporation shall nevertheless indemnify
and/or reimburse the Indemnitee for the portion thereof to which the Indemnitee
is entitled. The party or parties making the Determination shall determine the
portion (if less than all) of such claims, damages, expenses (including
attorneys' fees), judgments, penalties, fines or amounts paid in settlement for
which the Indemnitee is entitled to indemnification and/or reimbursement under
this Agreement.

                                    SECTION 6
                                    ---------

                     PROCEDURES FOR DETERMINATION OF WHETHER
                          STANDARDS HAVE BEEN SATISFIED
                          -----------------------------

         6.1.     Costs. All costs of making the Determination required by
Section 5 hereof shall be borne solely by the Corporation, including, but not
limited to, the costs of legal counsel, proxy solicitations and judicial
determinations. The Corporation shall also be solely responsible for paying (i)
all reasonable costs and expenses incurred by the Indemnitee to enforce this
Agreement, including, but not limited to, all costs incurred by the Indemnitee
to obtain court-ordered indemnification pursuant to Section 9 hereof, regardless
of the outcome of any such application or proceeding, and (ii) all costs of
defending any legal actions or proceedings challenging payments to the
Indemnitee under this Agreement.

         6.2.     Timing of the Determination. The Corporation shall use its
best efforts to make the Determination contemplated by Section 5 hereof promptly
(but in no event later than forty-five (45) days after receipt by the
Corporation of a written request for indemnification). In addition, the
Corporation agrees:

                                       5
<PAGE>

                  (a)      if the Determination is to be made by the Board or a
                           committee thereof, such Determination shall be made
                           not later than 15 days after a written request for a
                           Determination (a "Request") is delivered to the
                           Corporation by the Indemnitee;

                  (b)      if the Determination is to be made by independent
                           legal counsel, such Determination shall be made not
                           later than 30 days after a Request is delivered to
                           the Corporation by the Indemnitee; and

                  (c)      if the Determination is to be made by the
                           shareholders of the Corporation, such Determination
                           shall be made not later than 90 days after a Request
                           is delivered to the Corporation by the Indemnitee.

                           The failure to make a Determination within the
                           above-specified time period shall constitute a
                           Determination approving full indemnification or
                           reimbursement of the Indemnitee. Notwithstanding
                           anything herein to the contrary, a Determination may
                           be made in advance of (i) the Indemnitee's payment
                           (or incurring) of expenses with respect to which
                           indemnification of reimbursement is sought, and/or
                           (ii) final disposition of the action, suit or
                           proceeding with respect to which indemnification or
                           reimbursement is sought.

         6.3.     Payment of Indemnified Amount. Immediately following a
Determination that the Indemnitee has met the applicable requirements set forth
in Sections 1, 2, 3, or 4 hereof, as the case may be, or the passage of time
prescribed for making such Determination(s), the Corporation shall pay to the
Indemnitee in cash, the amount which the Indemnitee is entitled to be
indemnified and/or reimbursed, as the case may be, without further authorization
or action by the Board; provided, however, that costs and expenses for which
indemnification or reimbursement is sought have actually been incurred by the
Indemnitee.

         6.4.     Shareholder Vote on Determination. Notwithstanding the
provisions of applicable law, if the Indemnitee is a shareholder of the
Corporation, the Indemnitee and any other shareholder who is a party to the
legal action or proceeding for which indemnification or reimbursement is sought
shall be entitled to vote on any Determination to be made by the Corporation's
shareholders. In addition, in connection with each meeting at which a
shareholder Determination will be made, the Corporation shall solicit proxies
that expressly include a proposal to indemnify or reimburse the Indemnitee. The
Corporation's proxy statement relating to the proposal to indemnify or reimburse
an Indemnitee shall not include a recommendation against indemnification or
reimbursement.

                                       6
<PAGE>

         6.5.     Selection of Independent Legal Counsel. If the Determination
required under Section 5 is to be made by independent legal counsel, such
counsel shall be selected by the Indemnitee with the approval of the Board,
which approval shall not be unreasonably withheld. The fees and expenses
incurred by counsel in making any Determination (including Determinations
pursuant to Section 6.7 hereof) shall be borne solely by the Corporation
regardless of the results of any Determination and, if requested by counsel, the
Corporation shall give counsel an appropriate written agreement with respect to
the payment of their fees and expenses and such other matters as may be
reasonably requested by counsel.

         6.6.     Right of Indemnitee to Appeal an Adverse Determination by
Board. If a Determination is made by the Board or a committee thereof that the
Indemnitee did not meet the requirements set forth in Section 1, 2, 3, or 4
hereof, upon the written request of the Indemnitee and the Indemnitee's delivery
of $500 to the Corporation, the Corporation shall cause a new Determination to
be made by the Corporation's shareholders at the next regular or special meeting
of shareholders. Subject to Section 9 hereof, such Determination by the
Corporation's shareholders shall be binding and conclusive for all purposes of
this Agreement.

         6.7.     Right of Indemnitee to Select Forum for Determination. If at
any time subsequent to the date of this Agreement, Continuing Directors (as
defined below) do not constitute a majority of the members of the Board, or
there is otherwise a change in control of the Corporation, then upon the request
of the Indemnitee, the Corporation shall cause the Determination required by
Section 5 hereof to be made by independent counsel selected by the Indemnitee
and approved by the Board (which approval shall not be unreasonably withheld),
which counsel shall be deemed to satisfy the requirements of clause (3) of
Section 5 hereof. If legal counsel selected by the Indemnitee is not willing
and/or able to make the Determination, then the Corporation shall cause the
Determination to be made by a majority vote or consent of a Board committee
consisting solely of Continuing Directors. For purposes of this Agreement, a
"Continuing Director" means either a member of the Board on the date of this
Agreement or a person nominated to serve as a member of the Board by a majority
of the then Continuing Directors.

         6.8.     Access by Indemnitee to Determination. The Corporation shall
afford to the Indemnitee and his representatives ample opportunity to present
evidence of the facts upon which the Indemnitee relies for indemnification or
reimbursement, together with other information relating to any requested
Determination. The Corporation shall also afford the Indemnitee the reasonable
opportunity to include such evidence and information in any Corporation proxy
statement relating to a shareholder Determination.

         6.9.     Judicial Determinations in Derivative Suits. In each legal
action or proceeding described in Section 2 hereof, the Corporation shall cause
its counsel to use its best efforts to obtain from the Court in which such
action or proceeding was brought (i) an express adjudication whether the
Indemnitee is liable for negligence or misconduct in the performance of his duty
to the Corporation, and, if the Indemnitee is so liable, (ii) a determination
whether and to what extent, despite the adjudication of liability but in view of
all the circumstances of the case (including this Agreement), the Indemnitee is
fairly and reasonably entitled to indemnification.

                                       7
<PAGE>

                                    SECTION 7
                                    ---------

                               SCOPE OF INDEMNITY
                               ------------------

         The actions, suits and proceedings described in Section 1 and 2 hereof
shall include, for purposes of this Agreement, any actions that involve,
directly or indirectly, activities of the Indemnitee both in his capacities as a
Corporation director, officer, adviser, or agent and actions taken in another
capacity while serving as a director, officer, adviser, or agent, including, but
not limited to, actions or proceedings involving (i) compensation paid to the
Indemnitee by the Corporation (ii) activities by the Indemnitee on behalf of the
Corporation, including actions in which the Indemnitee is plaintiff, (iii)
actions alleging a misappropriation of a "corporate opportunity", (iv) responses
to a takeover attempt or threatened takeover attempt of the Corporation, (v)
transactions by the Indemnitee in the Corporation's securities, and (vi) the
Indemnitee's preparation for and appearances (or potential appearance) as a
witness in any action or proceeding relating, directly or indirectly, to the
Corporation. In addition, the Corporation agrees that, for purposes of this
Agreement, all services performed by the Indemnitee on behalf of, in connection
with or related to any subsidiary of the Corporation, any employee benefit plan
established for the benefit of employees of the Corporation or any subsidiary,
corporation, partnership or other entity in which the Corporation or any
subsidiary has a 5% or greater ownership interest, or any other affiliate shall
be deemed to be at the request of the Corporation.

                                    SECTION 8
                                    ---------

                              ADVANCE FOR EXPENSES
                              --------------------

         8.1.     Mandatory Advance. All costs and expenses (including
attorneys' fees) incurred by the Indemnitee in investigating, defending,
settling, or appealing any action, suit or proceeding described in Section 1 or
2 hereof shall be paid by the Corporation in advance of the final disposition of
such action, suit or proceeding. The Corporation shall promptly pay the amount
of such costs and expenses to the Indemnitee, but in no event later than 7 days
following the Indemnity's delivery to the Corporation of a written request for
an advance pursuant to this Section 8, together with a reasonable accounting of
such costs and expenses.

         8.2.     Undertaking to Repay. The Indemnitee hereby undertakes and
agrees to repay to the Corporation any advances made pursuant to this Section 8
if and to the extent that it shall ultimately be found that the Indemnitee is
not entitled to be indemnified by the Corporation for such amounts.

         8.3.     Miscellaneous. The Corporation shall make the advances
contemplated by this Section 8 regardless of the Indemnitee's financial ability
to make repayment, and regardless of whether indemnification of the Indemnitee
by the Corporation will ultimately be required. Any advances and undertakings to
repay pursuant to this Section 8 shall be unsecured and interest-free.

                                       8
<PAGE>

                                    SECTION 9
                                    ---------

                          COURT ORDERED INDEMNIFICATION
                          -----------------------------

         9.1.     Application to Court. Regardless of whether the Indemnitee has
met the requirements set forth in Section 1, 2, 3, or 4 hereof, as the case may
be, and notwithstanding the presence or absence of any Determination whether
such standards have been satisfied, the Indemnitee may apply for indemnification
(and/or reimbursement pursuant to Section 4 or 13 hereof) to the court
conducting any action or proceeding to which the Indemnitee is a party or to any
other court of competent jurisdiction. On receipt of an application, the court,
after giving any notice the court considers necessary, may order indemnification
(and/or reimbursement) if it determines the Indemnitee is fairly and reasonably
entitled to indemnification (and/or reimbursement) in view of all the relevant
circumstances (including this Agreement).

         9.2.     Enforceability. The right to indemnification and advances as
provided by this Agreement shall be enforceable by an Indemnitee in an action in
any court of competent jurisdiction. In such an action, the burden of proving
that indemnification is not required hereunder shall be on the Corporation.
Neither the failure of the Corporation (including its Board and independent
legal counsel) to have made a declaration prior to the commencement of such an
action that indemnification is proper in the circumstances because Indemnitee
has met the applicable standard of conduct, nor an actual Determination by the
Corporation (including its Board and independent legal counsel) that Indemnitee
has not met such applicable standard of conduct, shall be a defense to such an
action or create a presumption that Indemnitee has not met the applicable
standard of conduct. Indemnitee's expenses reasonably incurred in connection
with establishing his right to indemnification, in whole or in part, in
connection with any proceeding shall also be indemnified by the Corporation.

                                   SECTION 10
                                   ----------

                           NON-DISCLOSURE OF PAYMENTS
                           --------------------------

         Except as expressly required by applicable law, neither the Corporation
nor any Indemnitee shall disclose any payments under this Agreement unless prior
approval of each of the applicable parties is obtained. Any payments to an
Indemnitee that must be disclosed shall, unless otherwise required by law, be
described only in the Corporation's proxy or information statements relating to
special and/or annual meetings of the Corporation's shareholders, and the
Corporation shall afford the Indemnitee the reasonable opportunity to review all
such disclosures and, if requested, to explain in such statement any mitigating
circumstances regarding the events reported.

                                       9
<PAGE>

                                   SECTION 11
                                   ----------

        COVENANT NOT TO SUE, LIMITATION OF ACTIONS AND RELEASE OF CLAIMS
        ----------------------------------------------------------------

         No legal action shall be brought and no cause of action shall be
asserted by or on behalf of the Corporation (or any of its subsidiaries) against
an Indemnitee, his spouse, heirs, executors, personal representatives or
administrators, after the expiration of 2 years from the date the Indemnitee
ceases (for any reason) to serve as either an officer, director, advisor, or
agent of the Corporation, and any claim or cause of action of the Corporation
(or any of its subsidiaries) shall be extinguished and deemed released unless
asserted by filing of a legal action within such 2-year period.

                                   SECTION 12
                                   ----------

                     INDEMNIFICATION OF INDEMNITEE'S ESTATE
                     --------------------------------------

         Notwithstanding any other provision of this Agreement, if the
Indemnitee is deceased, and indemnification of the Indemnitee would be permitted
and/or required under this Agreement, the Corporation shall defend, indemnify
and hold harmless the Indemnitee's estate, spouse, heirs, administrators,
personal representatives and executors (collectively the "Indemnitee's Estate")
against, and the Corporation shall assume, any and all claims, damages,
liabilities, costs, expenses (including attorney's fees) penalties, judgements,
fines, and amounts paid in settlement actually incurred by the Indemnitee or the
Indemnitee's Estate in connection with the investigation, defense, settlement,
or appeal of any action or proceeding described in Section 1 or 2 hereof.

                                   SECTION 13
                                   ----------

                                DEFENSE OF CLAIMS
                                -----------------

         13.1.    Notification of Indemnification Claim. Promptly after receipt
by Indemnitee of notice of the commencement of any legal action or proceeding
which is the subject of this Agreement, Indemnitee will, if a claim in respect
thereof is to be made against the Corporation under this Agreement, notify the
Corporation in writing of the commencement thereof, but the omission to so
notify the Corporation will not relieve the Corporation from any liability that
it may have to the Indemnitee, unless such omission prejudices the Corporation
with respect thereto.

         13.2.    Defense of Claim. Notwithstanding any other provision of this
Agreement, with respect to any such legal action or proceeding to which an
Indemnitee gives notice to the Corporation of the commencement thereof: (a) The
Corporation will be entitled to participate therein at its own expense; and (b)
except as otherwise provided in this Section 13.2, to the extent that it wishes,
the Corporation, jointly with any other indemnifying party similarly notified,
shall be entitled to assume the defense thereof, with counsel reasonably
satisfactory to the Indemnitee. After notice from the Corporation to an

                                       10
<PAGE>

Indemnitee of its election to so assume the defense of any such action or
proceeding, the Corporation shall not be liable to the Indemnitee under this
Agreement for any legal or other expenses subsequently incurred by Indemnitee in
connection with the defense thereof, other than the costs of investigation or as
otherwise provided below, provided that the Indemnitee approves counsel to be
engaged by the Corporation therein. Indemnitee shall have the right to employ
its own counsel in any such legal action or proceeding, however, the fees and
expenses of such counsel following the date of Indemnitee's approval of the
Corporation's counsel therein shall be at the expense of the Indemnitee unless
(i) the employment of counsel by the Indemnitee has been authorized by the
Corporation, (ii) counsel for the Corporation shall reasonably conclude that
there may be a conflict of interest between the Corporation and the Indemnitee
in the conduct of the defense of such action or proceeding, such that under the
applicable code of professional responsibility the same counsel cannot represent
both the Corporation and the Indemnitee, or (iii) the Corporation shall not in
fact have employed counsel approved by Indemnitee to assume the defense of any
such action or proceeding, in each of which cases, all of the fees and expenses
of Indemnitee's counsel shall be at the expense of the Corporation.

         13.3.    Settlement. The Corporation shall not be liable to indemnify
the Indemnitee under this Agreement for any amounts paid by Indemnitee in
settlement of any legal action or proceeding effected without the Corporation's
written consent, unless the Corporation is in breach of its obligations under
this Agreement. The Corporation shall not settle any such action or proceeding
in any manner that would impose any penalty, limitation or obligation on the
Indemnitee without the Indemnitee's written consent. Neither the Corporation nor
the Indemnitee will unreasonably withhold, condition or delay providing their
consent to any such proposed settlement.

                                   SECTION 14
                                   ----------

                                      TERM
                                      ----

         This Agreement shall continue until and terminate upon the later of (a)
ten years after the date that Indemnitee ceases to be employed by the
Corporation or any of its subsidiaries (including service as a member of the
Corporation's or any of its subsidiary's Board of Directors), (b) the final
termination of any pending or threatened legal actions or proceedings to which
the Indemnitee may be subject, by reason of the fact that he is or was a
director, officer, employee, agent or fiduciary of the Corporation or is or was
performing services at the request of the Corporation or any subsidiary thereof
as a director, officer, employee, agent or fiduciary of any other entity
including, but not limited to, another corporation, partnership, joint venture
or trust, or by reason of any act or omission by him in such capacity, or (c)
the expiration of all applicable statutes of limitation with respect to all such
actions or potential actions to which the Indemnitee is or could be a party as a
result of his services to the Corporation and/or its subsidiaries.

                                       11
<PAGE>

                                   SECTION 15
                                   ----------

                                  MISCELLANEOUS
                                  -------------

         15.1.    Notice Provision. Any notice, demand or communication required
or permitted to be delivered or given by the provisions of this Agreement shall
be deemed to have been effectively delivered or given and received on the date
personally delivered to the respective party to whom it is directed, or within
three (3) days after being sent by registered or certified mail, with postage
prepaid and addressed to the parties at the addresses set forth in the preamble
to this Agreement. Any party may by notice change the address to which notice or
other communications to it are to be delivered or mailed.

         15.2.    Entire Agreement. Except for the Corporation's Articles of
Incorporation and By-Laws, this Agreement constitutes the entire understanding
of the parties and supercedes all prior understandings, whether written or oral,
between the parties with respect to the subject matter of this Agreement.

         15.3.    Non-exclusivity. The rights of indemnification and
reimbursement provided for in this Agreement shall be in addition to any other
rights to which the Indemnitee may otherwise be entitled under the Corporation's
Articles of Incorporation or By-Laws or any statute, agreement, vote of
shareholders or otherwise. To the extent that any change in applicable law
(whether by statute or judicial decision) permits greater indemnification by
agreement that would be afforded currently under the Corporation's Certificate
of Incorporation, or otherwise as set forth in this Agreement, it is the intent
of the parties that this Agreement provide Indemnitee with all of the greater
benefits so afforded by such change and the Corporation will, upon request of an
Indemnitee, so amend or modify this Agreement to effectuate the foregoing.

         15.4.    Severability of Provisions. If any provision of this Agreement
is held to be illegal, invalid, or unenforceable under present or future laws
effective during the term of this Agreement, such provision shall be fully
severable; this Agreement shall be construed and enforced as if such illegal,
invalid, or unenforceable provision had never comprised a part of this
Agreement; and the remaining provisions of this Agreement shall remain in full
force and effect and shall not be affected by the illegal, invalid, or
unenforceable provision or by its severance from this Agreement. Furthermore, in
lieu of each such illegal, invalid, or unenforceable provision there shall be
added automatically as a part of this Agreement a provision as similar in terms
to such illegal, invalid or unenforceable provision as may be possible and be
legal, valid and enforceable.

         15.5.    Saving Clause. If this Agreement or any portion hereof shall
be invalidated on any ground by any court of competent jurisdiction, the
Corporation shall nevertheless indemnify Indemnitee as to all costs, expenses,
liabilities, judgments, fines, and penalties with respect to any legal action or
proceeding to the fullest extent permitted by any applicable portion of this
Agreement that shall not have been invalidated or by any applicable law.

                                       12
<PAGE>

         15.6.    Cooperation and Intent. The Corporation shall cooperate in
good faith with the Indemnitee and use its best efforts to ensure that the
Indemnitee is indemnified and/or reimbursed for liabilities described herein to
the fullest extent permitted by law.

         15.7.    Employment. Nothing in this Agreement shall confer on
Indemnitee the right to continue in the employ or service of the Corporation or
affect the right of the Corporation to terminate an Indemnitee's employment
and/or directorship at any time in the sole discretion of the Corporation, with
or without cause, subject to any contractual or other rights which Indemnitee
may have as a result of, or otherwise with respect to, any such termination.

         15.8.    Security. To the fullest extent permitted by applicable law,
the Corporation may from time to time, but shall not be required to, provide
such insurance, collateral, letters of credit, or other security devices as its
Board may deem appropriate to support or secure the Corporation's obligations
under this Agreement.

         15.9.    Applicable Law. This Agreement shall be governed by and
construed under the laws of the State of New York.

         15.10.   Amendment. No amendment, modification or alteration of the
terms of this Agreement shall be binding unless in writing, dated subsequent to
the date of this Agreement, and executed by the parties to be bound thereby.

         15.11.   Binding Effect. The obligations of the Corporation to the
Indemnitee hereunder shall survive and continue as to the Indemnitee even if the
Indemnitee ceases to be a director, officer, employee, adviser and/or agent of
the Corporation. Each and all of the covenants, terms and provisions of this
Agreement shall be binding upon and inure to the benefit of the estate, heirs,
executors, administrators and personal representatives of Indemnitee.

         15.12.   Execution in Counterparts. This Agreement and any amendment
may be executed simultaneously or in counterparts, each of which together shall
constitute on and the same instrument.

         15.13.   Effective Date. The provisions of this Agreement shall cover
claims, actions, suits and proceedings whether now pending or hereafter
commenced and shall be retroactive to cover all acts or omissions or alleged
acts or omissions which heretofore have taken place.

                        [SIGNATURES FOLLOW ON NEXT PAGE]

                                       13
<PAGE>

         IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement as of the date first above written.

                                      THE SAGEMARK COMPANIES LTD.

                                      By:  /s/ THEODORE B. SHAPIRO
                                           -------------------------------------
                                           Theodore B. Shapiro,
                                           President and Chief Executive Officer

                                      INDEMNITEES:

                                      /s/ STEPHEN A. SCHULMAN
                                      ------------------------------------------
                                      Stephen A. Schulman, M.D.

                                      /s/ THEODORE B. SHAPIRO
                                      ------------------------------------------
                                      Theodore B. Shapiro

                                      /s/ ROBERT L. BLESSEY
                                      ------------------------------------------
                                      Robert L. Blessey

                                      /s/ EDWARD D. BRIGHT
                                      ------------------------------------------
                                      Edward D. Bright

                                      /s/ ABDALLAH S. MISHRICK
                                      ------------------------------------------
                                      Abdallah S. Mishrick

                                      /s/ GEORGE W. MAHONEY
                                      ------------------------------------------
                                      George W. Mahoney

                                       14

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