Document:

EXHIBIT
      10.4

    EMPLOYMENT
      AGREEMENT

    

    

    This
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      made as of February 10, 2006 (the “Agreement
      Date”)
      by and
      between Basic Care Networks, Inc., a Delaware corporation (the “Company”),
      and
      Ernest J. Ritacco (“Executive”),
      with
      reference to the following facts:

    

    A. Basic
      Care Networks, Inc., a Delaware corporation (the “Company”),
      is a
      health care management company that manages and operates a number of
      multi-disciplinary medical clinics. 

    

    B. Executive
      has extensive experience in the field of health care management.

    

    C.  The
      Company contemplates filing a registration statement on Form S-1 in connection
      with its firm commitment underwritten initial public offering (“IPO”), which the
      Company anticipates will be declared effective in 2006 (the “Effective
      Date”).
      

    

    D.  The
      Company desires to employ Executive to perform the duties and responsibilities
      described herein on the terms and conditions hereinafter set forth.

    

    NOW,
      THEREFORE, the parties agree as follows:

    

    1.  Employment.
      The
      Company hereby employs Executive and Executive hereby accepts such employment
      upon the terms and conditions hereinafter set forth.

     

    2.  Duties.
      Subject
      to the terms and provisions of this Agreement, Executive is hereby employed
      by
      the Company as Senior Vice President, Chief Financial Officer and Secretary
      of
      the Company. Executive shall have full responsibility and authority for such
      duties as customarily are associated with service as the Senior Vice President,
      Chief Financial Officer and Secretary of the Company at the direction of the
      Board of Directors of the Company (the “Board”).
      Executive shall faithfully and diligently perform, on a full time basis, such
      duties assigned to Executive and shall report directly to the Board.

     

    3.  Scope
      of Services.
      Executive shall devote substantially all of his business time, attention,
      energies, skills, learning and efforts to the Company’s business.

     

    4.  Term.
      Subject
      to prior termination of this Agreement as hereinafter provided, the term of
      this
      Agreement shall commence on the Effective Date and shall continue for three
      (3)
      years thereafter, unless earlier terminated as provided in this Agreement.
      

     

    5.  Compensation.

     

    5.1  Salary.
      Executive’s annual compensation (“Base
      Compensation”)
      under
      this Agreement shall be $175,000 per year, prorated for any partial year,
      commencing upon the Effective Date. The Base Compensation shall be payable
      semi-monthly in arrears from the Effective Date in accordance with the ordinary
      payroll procedures of the Company. Any increases in Base Compensation shall
      be
      in the sole and absolute discretion of the Board.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    5.2  Accrued
      Compensation for Prior Services.
      The
      Company agrees that as compensation for prior services rendered by the Executive
      from January 1, 2005 to the Agreement Date, and from the Agreement Date until
      the Effective Date, the Executive shall be entitled to a salary at the rate
      of
      $87,500 per annum, prorated for any partial period, payable within 10 days
      after
      the Closing of the IPO (on the Effective Date), or a sooner date agreed in
      writing by the parties; provided,
      however
      that the compensation provided under this Section 5.2 shall be due and payable
      to the Executive only if the IPO shall have occurred during 2006 while the
      Executive is employed by the Company. 

     

    5.3  Participation
      in Plan.
      Executive shall be eligible to participate in any executive incentive plans
      established by Company for all of its executive employees. 

     

    5.4  Expenses.
      The
      Company shall reimburse Executive for:

     

    (a)  all
      reasonable business, entertainment and travel expenses actually incurred or
      paid
      by Executive in the performance of his services on behalf of the Company, in
      accordance with the Company’s expense reimbursement policy as from time to time
      in effect; 

     

    (b)  the
      cost
      of continuing education courses in furtherance of Executive’s performance of his
      duties of up to $5,000 per annum;

     

    (c)  reasonable
      moving expenses if the Company requires the Executive to relocate, and as a
      result Executive must change his place of residence to a place more than 50
      miles away from his current place of residence (which expenses shall be
      appropriately documented by Executive); and

     

    (d)  if
      the
      Company requires the Executive to relocate (in excess of 50 miles), and after
      relocation the Executive is terminated without Cause pursuant to Section 7.1(b)
      and chooses to return to his original place of residence immediately prior
      to
      the Effective Date, reasonable moving expenses incurred by Executive (which
      expenses shall be appropriately documented by Executive). 

     

    5.5  Options.
      The
      Executive shall be eligible to participate in the Company’s 2005 Stock Incentive
      Plan, and receive option grant(s) thereunder for the purchase common stock
      of
      the Company (“Options”
or
      “Option”)
      at the
      discretion of the Board of Directors. The Executive shall receive an initial
      Option, provided that the IPO shall have closed, for the purchase of a number
      of
      shares of Company common stock representing up to two percent (2%) of the issued
      and outstanding common stock of the Company at an exercise price per share
      equal
      to the per share price in the IPO. Options granted to the Executive shall be
      controlled by the terms and conditions set forth in a Notice of Grant and Stock
      Option Agreement approved by the Board of Directors (“Option
      Agreement”).
      

     

    6.  Other
      Rights and Benefits.
      Executive shall receive other rights and benefits, a car allowance, life
      insurance, vacation time, sick pay and retirement plan participation, as
      determined by the Board of Directors. The Company shall facilitate and/or pay
      the reasonable cost of, the continuation of the Executive’s existing health
      insurance plan with Blue Cross, providing for equivalent coverage as in effect
      on the Agreement Date (“Health
      Insurance”).
      

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    7.  Termination.
      Executive’s employment may be terminated as follows:

     

    7.1  Termination
      by the Company or Executive.
      

     

    (a)  During
      the one (1) year period after the Effective Date, this Agreement may not be
      terminated by either party except pursuant to Section 7.2, 7.3 or 7.4 below.
      

     

    (b)  After
      the
      one (1) year period in Section 7.1(a), for two (2) years thereafter, Executive
      may not be terminated by the Company except pursuant to Section 7.2, 7.3 or
      7.4
      below, provided, however that during said two year period the board of directors
      of the Company may alter the responsibilities of the Executive to other
      senior-level functions, and change the Executive’s title to a mutually agreeable
      alternative title.

     

    7.2  Termination
      for Death.
      Executive’s employment shall terminate immediately upon Executive’s death.

     

    7.3  Termination
      Upon Disability.
      Executive’s employment shall terminate if Executive should become totally and
      permanently disabled. For purposes of this Agreement, Executive shall be
      considered “totally and permanently disabled” if Executive is treated as
      permanently “disabled” under any permanent disability insurance policy
      maintained by the Company and is entitled to full benefits payable under such
      policy upon a total and permanent disability. In the event any such policy
      is
      either not in force or the benefits are not available under such policy, then
      “total and permanent disability” shall mean the inability of Executive, as a
      result of substance abuse, any mental, nervous or psychiatric disorder, or
      physical condition, injury or illness to perform substantially all of his
      current duties on a full-time basis for a period of six (6) consecutive months,
      as determined by a licensed physician selected by the Board. 

     

    7.4  Termination
      by Company for “Cause”.
      The
      Company may terminate this Agreement for “Cause” upon three days written notice
      so long as the Company has given Executive written notice describing the Cause
      pursuant to subsections (c) and/or (e) Executive has not cured such Cause within
      a reasonable time, but no less than 14 days. For purposes of this Agreement,
      “Cause” shall mean the existence or occurrence of any of the following:

     

    (a)  Executive’s
      conviction for or pleading of nolo contendre to any felony involving the Company
      or moral turpitude. 

     

    (b)  Executive’s
      misappropriation of Company assets. 

     

    (c)  Executive’s
      willful violation of a Company policy or a directive of the Board previously
      delivered to him in writing. 

     

    (d)  Executive’s
      breach of his obligations set forth in Sections 11, 12, or 13 below.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (e)  Any
      willful neglect or material breach of duty by Executive under this Agreement,
      or
      any failure by Executive to perform duties under this Agreement, including
      the
      duties set forth in Section 2. 

     

    (f)  A
      failure, upon request of the Company, to relocate to a corporate office of
      the
      Company designated by the Board of Directors. 

     

    8.  Severance.
      If
      Executive’s employment with the Company is not assumed upon a Change in Control,
      Company shall pay Executive six (6) months of Executive’s Base Compensation less
      all appropriate federal and state income and employment taxes upon such Change
      in Control. If the Executive’s employment is terminated by Executive without
      Cause or terminated for Cause, death or disability of Executive, Executive
      shall
      not be entitled to any severance pay or other benefits, except as mandated
      by
      law. For purposes of this Agreement, a “Change
      in Control” means
      a
      change in ownership or control of the Company after the effective date of the
      IPO effected through the direct or indirect acquisition by any person or related
      group of persons of securities possessing more than fifty percent (50%) of
      the
      total combined voting power of the Company’s outstanding securities pursuant to
      a tender or exchange offer made directly to the Company’s stockholders which a
      majority of the directors on the board of directors who are not affiliates
      of
      the offeror do not recommend such stockholders accept. 

     

    9.  Representations
      and Warranties.
      Executive hereby represents and warrants to Company that as of the date of
      execution of this Agreement: (i) this Agreement will not cause or require
      Executive to breach any obligation to, or agreement or confidence with, any
      other person; (ii) Executive is not representing, or otherwise affiliated in
      any
      capacity with, any other lines of products, manufacturers, vendors or customers
      of the Company; and (iii) Executive has not been induced to enter into this
      Agreement by any promise or representation other than as expressly set forth
      in
      this Agreement.

     

    10.  Non-Solicitation.

     

    10.1  Non-Solicitation
      of Employees.
      Executive agrees that he will not, while employed by the Company and for a
      period of two (2) years following termination of such employment:

     

    (a)  directly
      solicit, encourage, or take any other action which is intended to induce any
      other employee of the Company to terminate his or her employment with the
      Company; or 

     

    (b)  directly
      interfere in any manner with the contractual or employment relationship between
      the Company and any such employee of the Company.

     

    The
      foregoing shall not prohibit Executive or any entity with which Executive may
      later be affiliated from hiring a former or existing employee of the Company
      or
      any of its subsidiaries, provided that such hiring does not result from the
      direct actions of Executive. For purposes of this Article 10, Article 11,
      Article 12 and Article 13, any reference to the Company shall include all of
      the
      Company’s Affiliates. As used herein, “Affiliate” means any person or entity
      controlling, controlled by or under common control with another person or
      entity. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    10.2  Non-Solicit
      of Customers with respect to Competitive Business Activity.
      Executive agrees that he will not, while employed by the Company and for a
      period of two (2) years following termination of such employment, directly
      or
      indirectly, whether for his own account or for the account of any other
      individual or entity, solicit the business or patronage of any customers of
      the
      Company with respect to products and/or services directly related to a
      Competitive Business Activity. “Competitive
      Business Activity”
shall
      mean engaging in, whether independently or as an employee, agent, consultant,
      advisor, independent contractor, partner, stockholder, officer, director or
      otherwise, any business which is materially competitive with the business of
      the
      Company as conducted or actively planned to be conducted by the Company during
      his employment by it, provided that Executive shall not be deemed to engage
      in a
      Competitive Business Activity solely by reason of (i) owning 1% or less of
      the
      outstanding common stock of any corporation if such class of common stock is
      registered under Section 12 of the Securities Exchange Act of 1934, or (ii)
      after the termination of his employment by the Company, being employed by or
      otherwise providing services to a corporation having total revenue of at least
      $500 million (or such lower number as may be agreed by the Board) so long as
      such services are provided solely to a division or other business unit of such
      corporation which does not engage in a business which is then competitive with
      the business of the Company. 

     

    11.  Confidentiality.
      Executive hereby acknowledges that the Company has made and will make available
      to Executive certain customer lists, product design information, performance
      standards and other confidential and/or proprietary information of the Company
      or licensed to the Company, including without limitation trade secrets,
      copyrighted materials and/or financial information of the Company (or any of
      its
      Affiliates), including without limitation, financial statements, reports and
      data (collectively, the “Confidential
      Material”);
      however, Confidential Material does not include any of the foregoing items
      which
      has become publicly known or made generally available through no wrongful act
      of
      Executive or of others who were under confidentiality obligations as to the
      item
      or items involved. Except as essential to Executive’s obligations under this
      Agreement, neither Executive nor any agent, employee, officer, or independent
      contractor of or retained by Executive shall make any disclosure of this
      Agreement, the terms of this Agreement, or any of the Confidential Material.
      Except as essential to Executive’s obligations under this Agreement, neither
      Executive nor any agent, employee, officer, or independent contractor of or
      retained by Executive shall make any duplication or other copy of any of the
      Confidential Material. Immediately upon request from the Company, Executive
      shall return to the Company all Confidential Material. Executive shall notify
      each person to whom any disclosure is made that such disclosure is made in
      confidence, that the Confidential Material shall be kept in confidence by such
      person. Nothing contained in this Section 11 shall be construed as preventing
      Executive from providing Confidential Material in compliance with a valid court
      order issued by a court of competent jurisdiction, providing Executive takes
      reasonable steps to prevent dissemination of such Confidential
      Material.

     

    12.  Proprietary
      Information.
      For
      purposes of this Agreement, “Proprietary
      Information”
shall
      mean any information, observation, data, written material, record, document,
      software, firmware, invention, discovery, improvement, development, tool,
      machine, apparatus, appliance, design, promotional idea, customer list,
      practice, process, formula, method, technique, trade secret, product and/or
      research related to the actual or anticipated research, marketing strategies,
      pricing information, business records, development, products, organization,
      business 

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    or
      finances of the Company. Proprietary Information shall not include information
      in the public domain as of execution of this Agreement except through any act
      or
      omission of Executive. All right, title and interest of every kind and nature
      whatsoever in and to the Proprietary Information made, discussed, developed,
      secured, obtained or learned by Executive during the term of this Agreement
      shall be the sole and exclusive property of the Company for any purposes or
      uses
      whatsoever, and shall be disclosed promptly by Executive to the Company. The
      covenants set forth in the preceding sentence shall apply regardless of whether
      any Proprietary Information is made, discovered, developed, secured, obtained
      or
      learned (a) solely or jointly with others, (b) during the usual hours of work
      or
      otherwise, (c) at the request and upon the suggestion of the Company or
      otherwise, or (d) with the Company’s materials, tools, instruments or on the
      Company’s premises or otherwise. All Proprietary Information developed, created,
      invented, devised, conceived or discovered by Executive that is subject to
      copyright protection is explicitly considered by Executive and the Company
      to be
      works made for hire to the extent permitted by law. Executive hereby forever
      fully releases and discharges the Company, and the Company and their respective
      officers, directors and employees, from and against any and all claims, demands,
      damages, liabilities, costs and expenses of Executive arising out of, or
      relating to, any Proprietary Information. Executive shall execute any documents
      and take any action the Company may deem necessary or appropriate to effectuate
      the provisions of this Agreement, including without limitation assisting the
      Company in obtaining and/or maintaining patents, copyrights or similar rights
      to
      any Proprietary Information assigned to the Company, if the Company, in their
      sole discretion, requests such assistance. Executive shall comply with any
      reasonable rules established from time to time by the Company for the protection
      of the confidentiality of any Proprietary Information. Executive irrevocably
      appoints the President of the Company to act as Executive’s agent and
      attorney-in-fact to perform all acts necessary to obtain and/or maintain
      patents, copyrights and similar rights to any Proprietary Information assigned
      by Executive to the Company under this Agreement if (a) Executive refuses
      to perform those acts, or (b) is unavailable, within the meaning of any
      applicable laws. Executive acknowledges that the grant of the foregoing power
      of
      attorney is coupled with an interest and shall survive the death or disability
      of Executive. Executive shall promptly disclose to the Company, in confidence
      (a) all Proprietary Information that Executive creates during the term of this
      Agreement, and (b) all patent applications, copyright registrations or similar
      rights filed or applied for by Executive within six months after termination
      of
      this Agreement. Any application for a patent, copyright registration or similar
      right filed by Executive within six months after termination of this Agreement
      shall be presumed to relate to Proprietary Information created by Executive
      during the term of this Agreement, unless Executive can prove otherwise. Nothing
      contained in this Agreement shall be construed to preclude the Company from
      exercising all of its rights and privileges as sole and exclusive owner of
      all
      of the Proprietary Information owned by or assigned to the Company under this
      Agreement. The Company, in exercising such rights and privileges with respect
      to
      any particular item of Proprietary Information, may decide not to file any
      patent application or any copyright registration on such Proprietary
      Information, may decide to maintain such Proprietary Information as secret
      and
      confidential, or may decide to abandon such Proprietary Information or dedicate
      it to the public. Executive shall have no authority to exercise any rights
      or
      privileges with respect to the Proprietary Information owned by or assigned
      to
      the Company under this Agreement. This Agreement does not apply to any
      Proprietary Information that qualifies fully under the provisions of California
      Labor Code Section 2870 or any similar or successor statute.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    13.  Business
      Opportunities.
      During
      the term of this Agreement, if Executive (or any agent, employee, officer or
      independent contractor of or retained by Executive) becomes aware of, or
      develops, creates, invests, devises, conceives or discovers, any project,
      investment, venture, business or other opportunity (any of the preceding, an
      “Opportunity”)
      that
      is similar to, competitive with, related to or in the same field as the Company,
      or any project, investment, venture, or business of the Company, then Executive
      shall so notify the Company immediately in writing of such Opportunity and
      shall
      use Executive’s good-faith efforts to cause the Company to have the opportunity
      to invest in, participate in or otherwise become affiliated with such
      Opportunity.

     

    14.  Miscellaneous.

     

    14.1  Section
      Headings.
      The
      section headings or captions in this Agreement are for convenience of reference
      only and do not form a part hereof, and do not in any way modify, interpret
      or
      construe the intent of the parties or affect any of the provisions of this
      Agreement.

     

    14.2  Survival.
      The
      obligations and rights imposed upon the parties hereto by the provisions of
      this
      Agreement which relate to acts or events subsequent to the termination of this
      Agreement shall survive the termination of this Agreement and shall remain
      fully
      effective thereafter, including without limitation the obligations of Executive
      with to any Confidential Material under Section 11.

     

    14.3  Arbitration.
      

     

    (a)  Any
      claim, dispute or other controversy (a “Controversy”)
      relating to this Agreement shall be settled and resolved by binding arbitration
      in Los Angeles County, California before a single arbitrator under the
      Employment Rules of the American Arbitration Association (“AAA”)
      in
      effect at the time a demand for arbitration is made. If there is any conflict
      between the AAA rules and this arbitration clause, this arbitration clause
      will
      govern and determine the rights of the parties. The Parties to this Agreement
      (the “Parties”)
      shall
      be entitled to full discovery regarding the Controversy as permitted by the
      California Code of Civil Procedure. The arbitrator’s decision on the Controversy
      shall be a final and binding determination of the Controversy and shall be
      fully
      enforceable as an arbitration award in any court having jurisdiction and venue
      over the Parties. The arbitrator shall also award the prevailing Party any
      reasonable attorneys’ fees and reasonable expenses the prevailing Party incurs
      in connection with the arbitration, and the non-prevailing Party shall pay
      the
      arbitrator’s fees and expenses. The arbitrator shall determine who is the
      prevailing Party. Each Party also agrees to accept service of process for all
      arbitration proceedings in accordance with AAA’s rules. 

     

    (b)  The
      obligation to arbitrate shall not be binding upon either party with respect
      to
      requests for temporary restraining orders, preliminary injunctions or other
      procedures in a court of competent jurisdiction to obtain interim relief when
      deemed necessary by such court to preserve the status quo or prevent irreparable
      injury pending resolution by arbitration of the actual dispute between the
      Parties.

     

    (c)  The
      provisions of this Section shall be construed as independent of any other
      covenant or provision of this Agreement; provided that, if a court of competent
      jurisdiction determines that any such provisions are unlawful in any way, such
      court shall modify or interpret such provisions to the minimum extent necessary
      to have them comply with the law.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (d)  This
      arbitration provision shall be deemed to be self-executing and shall remain
      in
      full force and effect after expiration or termination of this Agreement. In
      the
      event either party fails to appear at any properly noticed arbitration
      proceeding, an award may be entered against such party by default or otherwise
      notwithstanding said failure to appear.

     

    14.4  Severability.
      Should
      any one or more of the provisions of this Agreement be determined to be illegal
      or unenforceable in any relevant jurisdiction, then such illegal or
      unenforceable provision shall be modified by the proper court, if possible,
      but
      only to the extent necessary to make such provision enforceable, and such
      modified provision and all other provisions of this Agreement shall be given
      effect separately from the provision or portion thereof determined to be illegal
      or unenforceable and shall not be affected thereby; provided
      that,
      any such modification shall apply only with respect to the operation of this
      Agreement in the particular jurisdiction in which such determination of
      illegality or unenforceability is made.

     

    14.5  Waiver.
      The
      failure of either party to enforce any provision of this Agreement shall not
      be
      construed as a waiver of any such provision, nor prevent such party thereafter
      from enforcing such provision or any other provision of this Agreement. The
      rights granted both parties herein are cumulative and the election of one shall
      not constitute a waiver of such party’s right to assert all other legal remedies
      available under the circumstances.

     

    14.6  Parties
      in Interest.
      Nothing
      in this Agreement, except as expressly set forth herein, is intended to confer
      any rights or remedies under or by reason of this Agreement on any persons
      other
      than the parties to this Agreement and the successors, assigns and affiliates
      of
      the Company, nor is anything in this Agreement intended to relieve or discharge
      the obligation or liability of any third person to any party to this Agreement,
      nor shall any provision give any third person any right of action over or
      against any party to this Agreement.

     

    14.7  Assignment.
      The
      rights and obligations under this Agreement shall be binding upon, and inure
      to
      the benefit of, the heirs, executors, successors and assigns of Executive and
      the Company. Except as specifically provided in this Section 14, neither the
      Company nor Executive may assign this Agreement or delegate their respective
      responsibilities under this Agreement without the consent of the other party
      hereto. Upon the sale, exchange or other transfer of substantially all of the
      assets of the Company, the Company shall assign this Agreement to the transferee
      of such assets. No assignment of this Agreement by the Company shall relieve
      the
      Company of, and the Company shall remain obligated to perform, its duties and
      obligations under this Agreement, including, without limitation, payment of
      the
      Base Compensation set forth in Section 5, above.

     

    14.8  Attorneys’
      Fees.
      In the
      event of any Controversy, suit, action or arbitration to enforce any of the
      terms or provisions of this Agreement, the prevailing party shall be entitled
      to
      its reasonable attorneys’ fees and costs. The foregoing entitlement shall also
      include attorneys’ fees and costs of the prevailing party on any appeal of a
      judgment and for any action to enforce a judgment.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    14.9  Modification.
      This
      Agreement may be modified only by a contract in writing executed by the
      party(ies) to this Agreement against whom enforcement of such modification
      is
      sought.

     

    14.10  Prior
      Understandings.
      This
      Agreement contains the entire agreement between the parties to this Agreement
      with respect to the subject matter of this Agreement, is intended as a final
      expression of such parties’ agreement with respect to such terms as are included
      in this Agreement, is intended as a complete and exclusive statement of the
      terms of such agreement, and supersedes all negotiations, stipulations,
      understandings, agreements, representations and warranties, if any, with respect
      to such subject matter, which precede or accompany the execution of this
      Agreement.

     

    14.11  Interpretation.
      Whenever the context so requires in this Agreement, all words used in the
      singular shall be construed to have been used in the plural (and vice versa),
      each gender shall be construed to include any other genders, and the word
“person” shall be construed to include a natural person, a corporation, a firm,
      a partnership, a joint venture, a trust, an estate or any other
      entity.

     

    14.12  Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    14.13  Applicable
      Law.
      This
      Agreement and the rights and obligations of the parties hereunder shall be
      construed under, and governed by, the laws of the State of California without
      giving effect to conflict of laws provisions.

     

    14.14  Drafting
      Ambiguities.
      Each
      party to this Agreement has reviewed and revised this Agreement. Each party
      to
      this Agreement has had the opportunity to have such party’s legal counsel review
      and revise this Agreement. The rule of construction that any ambiguities are
      to
      be resolved against the drafting party shall not be employed in the
      interpretation of this Agreement or of any amendments or exhibits to this
      Agreement.

     

    [Signature
      Page Follows]

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

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

    

    THE
      COMPANY:

    

    BASIC
      CARE NETWORKS, INC.,

    a
      Delaware corporation

    
 

    By: /s/
      Robert Goldsamt

    

    Name: Robert
      Goldsamt

    

    Title: Chief
      Executive Officer

    
 

    EXECUTIVE:

    

    /s/
      Ernest J. Ritacco

    Ernest
      J.
      Ritacco

    

    

    
      
         

      

      
        10Unassociated Document

    EXHIBIT
      10.5

    CONSULTING
      AGREEMENT

    

    This
      Consulting Agreement (“Agreement”)
      is
      made as of December 12, 2005, by and between the undersigned Key Person (as
      defined in the Master Transaction Agreement) (“Consultant”),
      and
      Basic Health Care Networks of Texas, L.P., a Texas limited partnership (the
      “Purchaser”),
      in
      reference to the following:

     

    RECITALS

    A. The
      Consultant is a physician licensed in Texas, engaged in the business of
      providing physician practice management and administrative services in
      connection with various clinics in the State of Texas providing general
      practice, family practice, urgent care, physical medicine, rehabilitation and
      other ancillary medical services. 

    

    B. This
      Consulting Agreement is being entered into pursuant to a certain MASTER
      TRANSACTION AGREEMENT (“Master
      Transaction Agreement”),
      dated
      and effective as of December 12, 2005, is by and among Purchaser on the one
      hand, and 303 MEDICAL CLINIC, P.A., a Texas professional association, BRUCE
      WARDLE’, D.O., P.A., a Texas professional association, IBERIA MEDICAL CLINIC,
      P.A., a Texas professional association, KINGSLEY MEDICAL CLINIC, P.A., a Texas
      professional association, LAKE JUNE MEDICAL CENTER, P.A., a Texas professional
      association, NORTHSIDE MEDICAL CLINIC, P.A., a Texas professional association,
      O’CONNOR MEDICAL CENTER, P.A., a Texas professional association, and RED BIRD
      URGENT CARE CLINIC, P.A., a Texas professional association (collectively, the
      “Clinics”)
      and
      Dr. Bruce Wardlay. 

    

    C.  Pursuant
      to the Master Transaction Agreement, the Purchaser shall acquire certain assets
      (“Acquired
      Assets”)
      of the
      Clinics (the “Acquisition”)
      under
      a series of separate acquisition agreements. The Master Transaction Agreement,
      together with each of the exhibits attached thereto, including each of the
      Asset
      Purchase Agreements (and documents to be executed in connection therewith),
      are
      hereinafter collectively referred to as the “Transaction
      Documents.”
      Concurrently herewith, the Consultant will enter into a Non-Competition
      Agreement with the Purchaser. 

    

    D.  In
      connection with the Acquisition, one or more newly formed Texas professional
      associations (“New
      PA”)
      shall
      be formed by Texas-licensed physicians who shall conduct the medical practices
      formerly conducted by the Clinics, and such New PA will hire certain physicians
      and staff of the former Clinics. 

    

    E.
       The
      Consultant has valuable knowledge, relationships, experience and expertise
      in
      the management and operation of clinics for the delivery of general family
      and
      urgent care and ancillary medical services such as rehabilitation and physical
      medicine; the Purchaser desires that the Consultant advise the Purchaser in
      connection with the provision of management services to the New PA.  

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    F.  The
      Purchaser desires to engage Consultant, and Consultant desires to enter into
      a
      consulting agreement with the Purchaser, to provide consulting services and
      assistance to the Purchaser with respect to the management and operation of
      the
      New PA and the development of the New Clinics. 

    

    G.
       Nothing
      in this Agreement is intended to obligate the Consultant to render medical
      advice, or engage in patient care. 

    

    NOW,
      THEREFORE,
      the
      Purchaser and the Consultant agree as follows:

     

    AGREEMENT

    1. Term.
      The term
      of this Agreement shall commence on the date of Closing (as defined in the
      Master Transaction Agreement) and continue until December 31, 2006, renewable
      for an additional one (1) year period at the option of the Purchaser upon
      written notice to the Consultant prior to December 31, 2006, unless and until
      this Agreement is earlier terminated pursuant to Section 5 below (the
“Term”).

     

    2.  Duties
      of Consultant. 

    

    2.1  Consultant
      shall, to the best of its ability, render the services set forth in Section
      2.2
      below (the “Services”),
      in a
      timely and professional manner in accordance with this Agreement. Subject to
      the
      foregoing, the manner and means by which Consultant chooses to complete the
      Services are in Consultant’s sole discretion and control. Further, the parties
      shall cooperate in good faith to agree upon and implement such further services
      and agreements as may be requested by Purchaser relating to the Services. If
      Consultant performs any work on Purchaser’s premises, Consultant shall comply
      with all security, confidentiality, safety and health policies of Purchaser.
      

    

    2.2 The
      Services under this Agreement shall include: 

    

    (a) Ongoing
      Consultation.
      During
      the Term of this Agreement, Consultant shall advise the Purchaser regarding
      all
      aspects of the operation and management of the Clinics, specifically, under
      the
      Management Services Agreement between the Purchaser on the one hand, and the
      New
      PA on the other hand, as applicable; provided,
      however, that the Services shall not include the provision of medical advice,
      patient care or advice regarding patient care protocols, and that no additional
      Services shall be performed other than as set forth in this Agreement or
      otherwise agreed between the parties. 

    

    (b)
       Other
      Services.
      Additional services for compensation as agreed in writing by the parties.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (c) Availability
      of Consultant.
      Consultant shall make himself reasonably available for consultation during
      normal business hours. Consultant shall not be required to maintain an office
      and is not required by any provision of this Agreement to provide a specific
      number of hours of service. Consultant may provide advisory services in person,
      by telephone, or by other remote means of communication as appropriate, so
      long
      as the Services are rendered effectively. 

    

    (d)
       Substance
      of Services.
      The
      services of Consultant shall apply only to the provision of advise and opinions
      on the general terms of all aspects of the operation and management of the
      Clinics. Consultant shall not be required to provide specific detailed
      instructions on the particular duties of any particular agent, representative,
      employee, officer or director of the Purchaser. Purchaser shall designate not
      more than two agents, representatives and employees, at any one time, as
      contacts with Consultant and all advise and opinions rendered by Consultant
      shall be communicated to Purchaser by and through such agents, representatives
      or employees. The responsibility for the use of and acting upon any information,
      advise or opinions given by Consultant shall be that of the Purchaser and
      Consultant shall bear no liability for the use, failure to use or misuse of
      such
      information and opinions.

     

    3.  Compensation. 

      

    3.1  Calculation
      of Compensation.
      The
      Purchaser shall pay to the Consultant, as compensation for the Services, the
      following amounts consisting of performance incentive bonuses for each completed
      year of service: 

    

    (a)
       
      For the
      quarter ending March 31, 2007, Purchaser shall pay Consultant a performance
      incentive bonus based on the amount, if any, that Pre-Tax Profits from the
      Practice for such twelve month period ending March 31, 2007, exceeds 2005
      Pre-Tax Profits (“2006
      Increased Profit”),
      calculated as set forth in the table in Annex
      3.1
      (“2006
      Performance Incentive Bonus”).
      

    

    (b)
       For
      the
      quarter ending March 31, 2008, beginning as of the first anniversary of the
      Closing Date, Purchaser shall pay Consultant a performance incentive bonus
      based
      on the amount, if any, that Pre-Tax Profits from the Practice for such twelve
      month period ending March 31, 2008, exceeds 2006 Pre-Tax Profits (“2007
      Increased Profit”),
      calculated as set forth in the table in Annex
      3.1
      (“2007
      Performance Incentive Bonus”).
      

    

    For
      purposes of this Section 3.1, the term “Practice”
shall
      mean the medical practices established from assets purchased and/or acquired
      by
      the Company from FT. WORTH REHABILITATION, INC. and REHABILITATION PHYSICIANS
      NETWORK, INC. (the assets of which were also acquired in connection with the
      Master Transaction Agreement), and the Clinics, provided however, the term
      “Practice” shall not include additional practices, clinics or management
      services companies established after the date hereof by the Company, wherever
      located. 

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    For
      purposes of this Agreement, “Pre-Tax Profits,” with respect to any given year,
      shall mean the consolidated net income of the Practice for the 12 month period
      ending March 31 of that year, before provision for all federal, state and local
      income taxes for such period, determined by an independent accountant mutually
      designated by the parties, in accordance with GAAP; provided, however, that
      in
      making the foregoing determinations Pre-Tax Profits:

    

    i.  (i)neither
      the proceeds from nor any dividends or refunds with respect to, nor any
      increases in the cash surrender value of, any life insurance policy under which
      the Purchaser or the Clinics is the named beneficiary or is otherwise entitled
      to recovery, shall be included as income, and the premium expense related to
      any
      such life insurance policy shall not be treated as an expense;

     

    (ii)
       any
      extraordinary or unusual gains or losses and any gains or losses from the sale
      of any capital assets used by the Purchaser or the Clinics or
      any
      subsidiary thereof
      in its
      operations during the applicable period (as opposed to assets acquired in the
      ordinary course of the business of the Clinics and its subsidiaries for resale
      or other disposition) shall be excluded from income; 

    

    3.2   
      Payment
      Terms.
      The
      Purchaser shall pay Consultant the amounts due hereunder within sixty (60)
      days
      after the end of each calendar year (beginning after completion of the 2006
      calendar year). The payment terms in Section 3.1 and 3.2 shall survive the
      termination of this Agreement until all payments due to Consultant under this
      Section 3 are calculated and paid, except that in the event of an automatic
      termination or termination by default of the Consultant under Sections 5.1
      or
      5.2 the payment obligations under this Section 3 shall immediately terminate.
      

     

    4. Nondisclosure
      and Noninterference.

    

    4.1 Access
      to Confidential Information. The
      Consultant agrees that during the course of the business relationship between
      the Consultant and the Purchaser, the Consultant will have access to and become
      acquainted with confidential proprietary information (“Confidential
      Information”)
      which
      is owned by the Purchaser and is regularly used in the operation of the
      Purchaser’s business. The Consultant agrees that the term “Confidential
      Information” as used in this Agreement is to be broadly interpreted and includes
      (i)
      information that has, or could have, commercial value for the business in which
      the Purchaser is engaged, and
      (ii)
      information that, if disclosed without authorization, could be detrimental
      to
      the economic interests of the Purchaser. The Consultant agrees that the term
      “Confidential Information” includes, without limitation, any proprietary or
      otherwise undisclosed information about present and future patents, patent
      applications, copyrights, trademarks, trade names, service marks, service names,
      “know-how,” trade secrets, customer and supplier identities, characteristics and
      terms of agreement, details of customer or consultant contracts, pricing
      policies, operational methods, marketing plans or strategies, product
      development techniques or plans, business acquisitions plans, science or
      technical information, ideas, discoveries, designs, computer programs (including
      source codes), financial forecasts, unpublished financial information, budgets,
      processes, procedures, formulae, improvements or other proprietary or
      intellectual property of the Purchaser, whether or not in written or tangible
      form, and whether or not registered, and including all memoranda, notes,
      summaries, plans, reports, records, documents and other evidence thereof. The
      Consultant acknowledges that all Confidential Information, whether prepared
      by
      the Consultant or otherwise acquired by the Consultant in any other way
in
      connection with this Agreement or the Master Transaction Agreement,
      shall,
      as between the Purchaser and the Consultant, remain the exclusive property
      of
      the Purchaser.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    4.2 No
      Unfair Use by Consultant.
      The
      Consultant promises and agrees that the Consultant (which shall include the
      Consultant’s employees and contractors) shall not misuse, misappropriate, or
      disclose in any way to any person or entity any of the Purchaser’s Confidential
      Information, either directly or indirectly, nor will the Consultant use the
      Confidential Information in any way or at any time except as required in the
      course of the Consultant’s business relationship with the Purchaser. The
      Consultant agrees that the sale or unauthorized use or disclosure of any of
      the
      Purchaser’s Confidential Information constitutes unfair competition. The
      Consultant promises and agrees not to engage in any unfair competition with
      the
      Purchaser. 

    

    4.3 Termination
      of Confidentiality Obligation.
      Confidential Information ceases to be confidential and subject to the terms
      of
      this Agreement if (a) such information becomes generally known to the public
      through no fault of the Consultant; (b) the Purchaser conveys such information
      to a third party without designating it as confidential; and/or (c) the
      Consultant learns of such information from a third party who did not breach
      any
      obligation of confidentiality. Additionally, the Consultant shall have the
      right
      to disclose Confidential Information if required to do so by court order,
      provided that prior to so disclosing, the Consultant shall inform the Purchaser
      of the court order and give the Purchaser an opportunity to seek a protective
      order respecting such Confidential Information.

    

    4.4 Noninterference.
      Consultant acknowledges that Purchaser’s relationships with its employees,
      agents, suppliers, customers and vendors are valuable business assets.
      Accordingly, Consultant agrees that, during the period of this Agreement
      Consultant shall not (for itself or for any third party) divert or attempt
      to
      divert from Purchaser any business, employee, agent, supplier, client, customer
      or vendor, through solicitation or otherwise. Consultant further acknowledges
      that its engagement or participation, directly or indirectly, in any business
      in
      competition with Purchaser would inherently involve the unauthorized use or
      disclosure of Confidential Information. Accordingly, to prevent any such
      unauthorized use or disclosure, Consultant agrees that it shall not, during
      the
      term of this Agreement, engage or participate, directly or indirectly, in any
      such competitive business unless it can demonstrate to Purchaser’s reasonable
      satisfaction that there is no reasonable possible risk of such unauthorized
      use
      or disclosure. Prior to any such engagement or participation in any such
      competitive business, Consultant shall notify Purchaser and shall give Purchaser
      a reasonable opportunity to determine the degree of any such risk of
      unauthorized use or disclosure. Accordingly,
      to prevent any such unauthorized use or disclosure, Consultant agrees that
      it
      shall not, during the term of this Agreement, engage or participate, directly
      or
      indirectly, in any such competitive business unless it can demonstrate to
      Purchaser’s reasonable satisfaction that there is no reasonable possible risk of
      such unauthorized use or disclosure. Prior to any such engagement or
      participation in any such competitive business, Consultant shall notify
      Purchaser and shall give Purchaser a reasonable opportunity to determine the
      degree of any such risk of unauthorized use or disclosure. Notwithstanding
      the
      foregoing, Purchaser expressly acknowledges and agrees that this section 4.4
      shall in no event apply to Consultant’s management, participation, ownership or
      other interest in the clinics and entities listed on Exhibit
      “A”
      attached
      hereto and made a part hereof for all purposes.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    4.5 Obligations
      Survive Agreement.
      The
      Consultant’s obligations under this section 4 shall survive the expiration or
      termination of this Agreement.

    

    5. Termination.

    

    5.1 Termination
      on Default. Should
      either party default in the performance of this Agreement or materially breach
      any of its provisions, the non-breaching party may terminate this Agreement
      by
      giving written notification to the breaching party. Termination shall be
      effective upon two days notice (which notice shall be given in accordance with
      Section 9 below). For purposes of this section, material breaches of this
      Agreement shall include, but not be limited to any of the
      following:

    

    (a)
       the
      failure by the Purchaser to pay the compensation set forth in section 3 above
      when due, if the Purchaser has not cured such breach within 10 days after
      receipt of written notice from the Consultant; 

    

    (b)
       the
      material breach or refusal to perform any term of this Agreement by Consultant,
      if the Consultant has not cured such breach within twenty (20) days after
      receipt of written notice from the Purchaser; 

    

    (c)
       the
      failure, on more than one occasion, to perform duties which are required to
      be
      performed under the terms of this Agreement on the part of the Consultant;
      

    

    (d)
       the
      Consultant’s commission of acts of dishonesty, fraud, or misrepresentation by
      any of the Consultants members, managers or employees; 

    

    (e)
       the
      failure by the Consultant to conform to all laws and regulations governing
      the
      Consultant’s duties under this Agreement;

    

    (f)
       the
      commission by the Consultant of any act that brings the Purchaser into public
      scandal or which will reflect unfavorably on the reputation of the Purchaser;
      

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (g)
       the
      failure of Consultant to be reasonably available for consultation by Purchaser,
      except in the case of death or Disability (hereinafter defined) of Consultant;
      

    

    (h) the
      cessation of Continuous Service (hereinafter defined) under this Agreement
      by
      Consultant, except in the case of death or Disability of Consultant; “Continuous
      Service” means that the provision of services to the Purchaser under this
      Agreement is not interrupted or terminated. Continuous Service shall not be
      considered interrupted in the case of a leave of absence of up to one month
      during any twelve month period unless approved by the Purchaser;
      and

     

    (i) the
      breach by Consultant of any term of the Transaction Documents to which it is
      a
      party, if the Consultant has not cured such breach within twenty days after
      the
      Purchaser delivers written notice to the Consultant. 

     

    For
      purposes of this Agreement, “Disability” means when an individual is permanently
      and totally disabled if he or she is unable to engage in any substantial gainful
      activity by reason of any medically determinable physical or mental impairment
      which can be expected to result in death or which has lasted or can be expected
      to last for a continuous period of not less than twelve (12) months.

    

    5.2 Automatic
      Termination. This
      Agreement will terminate without any further action on the part of either party
      upon the occurrence of any of the following events: (a) an agreement by the
      parties to terminate, as contemplated by section 1 above, or (b) the voluntary
      dissolution or winding up of the Consultant. 

     

    5.3 Return
      of Purchaser Property.
      Upon the
      termination or expiration of this Agreement, the Consultant shall immediately
      transfer to the Purchaser all files (including, but not limited to, electronic
      files), records, documents, drawings, specifications, equipment and similar
      items in his possession relating to the business of the Purchaser or its
      Confidential Information (including the work product of the Consultant created
      pursuant to this Agreement) and the Purchaser shall immediately transfer to
      the
      Consultant all files (including, but not limited to, electronic files) records,
      documents, drawings, specifications, equipment and similar items in its
      possession belonging to the Consultant, so long as such property does not
      include or encompass Confidential Information belonging to the Purchaser. If
      property otherwise belonging to the Consultant includes or encompasses
      Confidential Information belonging to the Purchaser, then such Confidential
      Information shall be removed from the property, if possible, but if it is not
      possible to remove the Confidential Information then the Purchaser and the
      Consultant will negotiate in good faith to find a mutual solution to the
      disposition of the property.

    

    5.4 Remedies
      for Breach.
      Consultant recognizes that the covenants contained in Section 4 hereof are
      reasonable and necessary to protect the legitimate interests of Purchaser,
      that
      Purchaser would not have entered into this Agreement in the absence of such
      covenants, and that Consultant’s breach or threatened breach of such covenants
      shall cause Purchaser irreparable harm and significant injury, the amount of
      which shall be extremely difficult to estimate and ascertain, thus, making
      any
      remedy at law or in damages inadequate. Therefore, Consultant agrees that
      Purchaser shall be entitled, without the necessity of posting of any bond or
      security, to the issuance of injunctive relief by any court of competent
      jurisdiction enjoining any breach or threatened breach of such covenants and
      for
      any other relief such court deems appropriate. This right shall be in addition
      to any other remedy available to Purchaser at law or in equity.

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    6. Status
      of Consultant.
      The
      Consultant understands and agrees that the Consultant is not an employee of
      the
      Purchaser and that the Consultant will not be entitled to receive employee
      benefits from the Purchaser, including, but not limited to, sick leave,
      vacation, retirement or death benefits. Furthermore, the Consultant shall pay,
      when and as due, any and all taxes incurred as a result of the Consultant’s
      compensation hereunder, including estimated taxes, and shall provide the
      Purchaser with proof of said payments, upon demand. The Consultant hereby agrees
      to indemnify the Purchaser for any claims, losses, costs, fees, liabilities,
      damages or injuries suffered by the Purchaser arising out of the Consultant’s
      breach of this section.

    

    7. Representations
      and Warranties of Consultant. 

     

    (a)  The
      Consultant represents that the Consultant has the qualifications and ability
      to
      perform the services in a professional manner, without the advice, control,
      or
      supervision of the Purchaser.

     

    (b)  Consultant
      represents and warrants that, to the best of his knowledge, the Consultant
      is
      not a party to any other agreement that would prevent Consultant from performing
      his obligations under this Agreement. 

     

    8.
       Disclaimer.
      Each
      of
      the parties hereto disclaims any representations, warranties, guarantees, or
      projections relating to the future earnings, revenues or profits of any
      business, any descriptions of the value of any property or intangibles
      (including but not limited to good will, “going concern” value, accounts
      receivable), any statements as to return on investment, or any other matter
      whatsoever with respect to any party, affiliate of any party, entity, and New
      PA
      (as described in the Master Transaction Agreement).

     

    9. Notices.
      All
      notices, consents and other communications hereunder shall be in writing and
      shall be deemed to have been given when delivered personally, on the next
      business day when sent overnight by Federal Express or other nationally
      recognized overnight courier service, or five (5) days after being mailed if
      mailed by first-class, registered or certified mail, postage prepaid, addressed:
      

     

    If
      to
      Purchaser, addressed to:

    

    Robert
      S.
      Goldsamt, CEO

    Basic
      Health Care Networks of Texas, L.P. 

    4270
      Promenade Way, Suite 226

    Marina
      Del Rey, California 90292

    Facsimile:
      (310) 876-0791

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    With
      copies to:

    

    Kevin
      K.
      Leung, Esq.

    Richardson
      & Patel, LLP

    10900
      Wilshire Boulevard, Suite 500

    Los
      Angeles, California 90024

    Facsimile:
      (310) 208-1154

    

     If
      to
      the Obligor, addressed to:

    

    Dr.
      Bruce
      Wardlay

    17853
      Country Road, 105A

    Grandview,
      TX 76050

    e-mail:
      txmedclinic@hotmail.com

    Facsimile:
      (817) 866-3487

     

    or
      at
      such other address or addresses as the respective parties shall have furnished
      to the other parties in writing. 

    

    10. Additional
      Covenants.
      The
      Consultant agrees to promptly notify the Purchaser in writing of any change
      in
      status of the Consultant, including: (i) the disassociation, departure,
      separation, termination of any Key Person from the Consultant, (ii) the
      termination or expiration of the Operating Agreement of the Consultant; or
      (iii)
      the voluntary dissolution or winding up of the Consultant. The parties agree
      that in all actions taken in performance of this Agreement and in their
      enforcement of all rights granted under this Agreement, they will act in good
      faith and practice fair dealing. 

     

    11.
       Choice
      of Law and Venue.
      This
      Agreement shall be governed according to the laws of the State of Texas. Venue
      for any legal or equitable action between the Purchaser and the Consultant
      which
      relates to this Agreement shall be in the county of Dallas.

    

    12. Entire
      Agreement.
      This
      Agreement supersedes any and all other agreements, either oral or in writing,
      between the parties hereto with respect to the services to be rendered by the
      Consultant to the Purchaser, and except for the Master Transaction Agreement
      and
      agreements referenced therein, this Agreement contains all of the covenants
      and
      agreements between the parties with respect to the services to be rendered
      by
      the Consultant to the Purchaser in any manner whatsoever. Each party to this
      agreement acknowledges that except as set forth in the Master Transaction
      Agreement and the agreements referenced therein, no representations,
      inducements, promises, or agreements, orally or otherwise, have been made by
      any
      party, or anyone acting on behalf of any party, which are not embodied herein,
      and that no other agreement, statement, or promise not contained in this
      Agreement shall be valid or binding on either party.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    13. Counterparts.
      This
      Agreement may be executed manually or by facsimile signature in two or more
      counterparts, each of which shall be deemed an original, and all of which
      together shall constitute but one and the same instrument.

    

    14. Severability.
      If any
      term or provision of this Agreement or the application thereof to any person
      or
      circumstance shall, to any extent, be determined to be invalid, illegal or
      unenforceable under present or future laws effective during the term of this
      Agreement, then and, in that event: (A) the performance of the offending term
      or
      provision (but only to the extent its application is invalid, illegal or
      unenforceable) shall be excused as if it had never been incorporated into this
      Agreement, and, in lieu of such excused provision, there shall be added a
      provision as similar in terms and amount to such excused provision as may be
      possible and be legal, valid and enforceable, and (B) the remaining part of
      this
      Agreement (including the application of the offending term or provision to
      persons or circumstances other than those as to which it is held invalid,
      illegal or unenforceable) shall not be affected thereby and shall continue
      in
      full force and effect to the fullest extent provided by law.

    

    15. Preparation
      of Agreement.
      It
      is
      acknowledged by each party that such party either had separate and independent
      advice of counsel or the opportunity to avail itself or herself of same. In
      light of these facts it is acknowledged that no party shall be construed to
      be
      solely responsible for the drafting hereof, and therefore any ambiguity shall
      not be construed against any party as the alleged draftsman of this
      Agreement.

    

    16. Assignment.
      Consultant acknowledges that Purchaser has entered into this Agreement on the
      basis of the particular abilities of Consultant. Accordingly, the Purchaser
      shall be entitled to assign, sell, transfer, delegate or otherwise dispose
      of,
      whether voluntarily or involuntarily, by operation of law or otherwise, this
      Agreement and any of its rights or obligations of this Agreement, but Consultant
      shall not and shall not have the right to assign, sell, transfer, delegate
      or
      otherwise dispose of, whether voluntarily or involuntarily, by operation of
      law
      or otherwise, this Agreement or any of its rights or obligations under this
      Agreement without the prior written consent of Purchaser. Except as provided
      herein, any purported assignment, transfer or delegation by Consultant shall
      be
      null and void. Subject to the foregoing, this Agreement shall be binding upon
      and shall inure to the benefit of the parties and their respective successors
      and permitted assigns.

    

    17. Electronically
      Transmitted Documents.
      If a
      copy or counterpart of this Agreement is originally executed and such copy
      or
      counterpart is thereafter transmitted electronically by facsimile or similar
      device, such facsimile document shall for all purposes be treated as if manually
      signed by the party whose facsimile signature appears.

    

    

    [Remainder
      of Page Left Blank Intentionally]

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Consulting Agreement on the date first written
      above.

    

    

    

     

    CONSULTANT:

     

    

    

    /s/
      Bruce
      Wardlay

    ___________________________

    Bruce
      Wardlay 

    

    

    

    PURCHASER:

     

    BASIC
      HEALTH CARE NETWORKS OF TEXAS, LP, A TEXAS LIMITED
      PARTNERHSIP

    

    By: BASIC
      HEALTH CARE NETWORKS OF TEXAS I, LLC, a Delaware limited liability company,
       General
      Partner

    

    

    By: /s/
      Robert Goldsamt

    ______________________________  

             
        Robert
      Goldsamt

    Chief
      Executive Officer

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    ANNEX
      3.1

    

    PERFORMANCE
      INCENTIVE BONUS

    

    

    

    The
      “2006 Performance Incentive Bonus” shall equal one-third (33.33%)
      of:

    

    20%
      of
      2006 Increased Profit between $1 million and $1,999,999; and

    25%
      of
      2006 Increased Profit between $2 million and $2,999,999; and

    30%
      of
      2006 Increased Profit between $3 million and $3,999,999; and

    35%
      of
      2006 Increased Profit between $4 million and $4,999,999; and

    40%
      of
      2006 Increased Profit between $5 million and $5,999,999; and

    50%
      of
      2006 Increased Profit over $6 million 

    

    

    

    The
      “2007 Performance Incentive Bonus” shall equal one-third (33.33%)
      of:

    

    20%
      of
      2007 Increased Profit between $1 million and $1,999,999; and

    25%
      of
      2007 Increased Profit between $2 million and $2,999,999; and

    30%
      of
      2007 Increased Profit between $3 million and $3,999,999; and

    35%
      of
      2007 Increased Profit between $4 million and $4,999,999; and

    40%
      of
      2007 Increased Profit between $5 million and $5,999,999; and

    50%
      of
      2007 Increased Profit over $6 million 

     

    
 

    
      
         

      

      
        12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]