Document:

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                                                                   EXHIBIT 10.16

                                              FOR PURCHASES DIRECT FROM SUPPLIER
                                              SUBJECT TO COMPETITIVE BID PROCESS

                                 NOVATION, LLC

                               SUPPLIER AGREEMENT

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                               TABLE OF CONTENTS
<Table>
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1.   INTRODUCTION .........................................................   1
     a.   Purchasing Opportunities for Members ............................   1
     b.   Supplier ........................................................   1
     c.   Bid .............................................................   1

2.   CONTRACT AWARD .......................................................   1
     a.   Letter of Award .................................................   1
     b.   Optional Purchasing Arrangement .................................   2
     c.   Market Competitive Terms ........................................   2
     d.   Changes in Award Prices .........................................   2
     e.   Notification of Changes in Pricing Terms ........................   2

3.   TERM AND TERMINATION .................................................   3
     a.   Term ............................................................   3
     b.   Termination by Novation .........................................   3
     c.   Termination by Supplier .........................................   3

4.   PRODUCT SUPPLY .......................................................   3
     a.   Delivery and Invoicing ..........................................   3
     b.   Purchase Orders .................................................   3
     c.   Product Fill Rates; Confirmation and Delivery Times .............   4
     d.   Bundled Terms ...................................................   4
     e.   Discontinuation of Products; Changes in Packaging ...............   4
     f.   Replacement or New Products .....................................   4
     g.   Member Services .................................................   4
     h.   Product Deletion ................................................   5
     i.   Return of Products ..............................................   5
     j.   Failure to Supply ...............................................   5

5.   PRODUCT QUALITY ......................................................   5
     a.   Free From Defects ...............................................   5
     b.   Product Compliance ..............................................   6
     c.   Patent Infringement .............................................   6
     d.   Product Condition ...............................................   6
     e.   Recall of Products ..............................................   6
     f.   Shelf Life ......................................................   6

6.   CENTURY COMPLIANCE ...................................................   7
     a.   Definitions .....................................................   7
     b.   Representations .................................................   7
     c.   Remedies ........................................................   8
     d.   Noncompliance Notice ............................................   8
     e.   Survival ........................................................   8
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<Table>
<Caption>
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7.   REPORTS AND ELECTRONIC DATA INTERCHANGE ..............................   8
     a.   Report Content ..................................................   8
     b.   Report Format and Delivery ......................................   9
     c.   Electronic Data Interchange .....................................   9

8.   OBLIGATIONS OF NOVATION...............................................   9
     a.   Information to Members ..........................................   9
     b.   Marketing Services ..............................................   9

9.   MARKETING FEES........................................................  10
     a.   Calculation .....................................................  10
     b.   Payment .........................................................  10

10.  ADMINISTRATIVE PENALTIES .............................................  10

11.  NONPAYMENT OR INSOLVENCY OF A MEMBER .................................  11

12.  INSURANCE ............................................................  11
     a.   Policy Requirements .............................................  11
     b.   Self-Insurance ..................................................  12
     c.   Amendments, Notices and Endorsements ............................  12

13.  COMPLIANCE WITH LAW ..................................................  12

14.  HOLD HARMLESS ........................................................  12

15.  BOOKS AND RECORDS; FACILITIES INSPECTIONS ............................  13

16.  USE OF NAMES, ETC. ...................................................  13

17.  CONFIDENTIAL INFORMATION .............................................  13
     a.   Nondisclosure....................................................  13
     b.   Definition ......................................................  13

18.  MISCELLANEOUS ........................................................  14
     a.   Choice of Law ...................................................  14
     b.   Not Responsible .................................................  14
     c.   Third Party Beneficiaries .......................................  14
     d.   Notices .........................................................  14
     e.   No Assignment ...................................................  14
     f.   Severability ....................................................  15
     g.   Entire Agreement ................................................  15
</Table>

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                                 NOVATION, LLC

                               SUPPLIER AGREEMENT

1. INTRODUCTION.

         a. PURCHASING OPPORTUNITIES FOR MEMBERS. Novation, LLC ("Novation") is
engaged in providing purchasing opportunities with respect to high quality
products and services to participating health care providers ("Members").
Members are entitled to participate in Novation's programs through their
membership or other participatory status in any of the following client
organizations: VHA Inc., University HealthSystem Consortium, and HealthCare
Purchasing Partners International, LLC (collectively, "Clients"). A current
listing of Members is maintained by Novation in the electronic database included
as part of the electronic data interchange described in Subsection 7.c below
("Novation Database"). A provider will become a "Member" for purposes of this
Agreement at the time Novation adds the provider to the Novation Database and
will cease to be a "Member" for such purposes at the time Novation deletes the
provider from the Novation Database.

         b. SUPPLIER. Supplier is the manufacturer of products listed on Exhibit
A (the provider of installation, training and maintenance services for such
products, and the provider of any other services listed on Exhibit A (such
products and/or services are collectively referred to herein as "Products").

         c. BID. Supplier has responded to Novation's Invitation to Bid by
submitting its written offer ("Bid") to Novation consisting of this Agreement,
the listing of Products and pricing therefor ("Award Prices") attached hereto as
Exhibit A, the other specifications attached hereto as Exhibit B ("Non-Price
Specifications") and any other materials required to be submitted in accordance
with the Bid Instructions.

2. CONTRACT AWARD.

         a. LETTER OF AWARD. By executing and delivering the Letter of Award
attached hereto as Exhibit C ("Award Letter") to Supplier, Novation will have
accepted the Bid, and Novation and Supplier therefore agree that Supplier will
make the Products available for purchase by the Members at the Award Prices in
accordance with the terms of this Agreement; provided, however, that Novation's
award of this Agreement to Supplier will not constitute a commitment by any
person to purchase any of the Products. No obligations of Novation set forth in
this Agreement will be valid or enforceable against Novation unless and until
the Award Letter has been duly executed by Novation and attached as an exhibit
hereto. Supplier acknowledges that, in making its award to Supplier, Novation
has materially relied on all representations, warranties and agreements made by
Supplier as part of the Bid and that all such representations, warranties and
agreements will survive acceptance of the Bid.

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         b. OPTIONAL PURCHASING ARRANGEMENT. Novation and Supplier agree that
each Member will have the option of purchasing the Products under the terms of
this Agreement or under the terms of any other purchasing or pricing arrangement
that may exist between such Member and Supplier at any time during the Term;
provided, however, that all of Supplier's sales of the Products to Members,
whether under the pricing and other terms of this Agreement or otherwise, will
be reported by Supplier to Novation in accordance with Section 7 below and will
be included in the aggregate dollar volume of purchases used in calculating the
Marketing Fees payable to Novation in accordance with Section 9 below. If any
Member uses any other purchasing or pricing arrangement with Supplier when
ordering products covered by any contract between Supplier and Novation,
Supplier will notify such Member of the pricing and other significant terms of
the applicable Novation contract.

         c. MARKET COMPETITIVE TERMS. Supplier agrees that the prices, quality,
value and technology of all Products purchased under this Agreement will remain
market competitive at all times during the Term. Supplier agrees to provide
prompt written notice to Novation of all offers for the sale of the Products
made by Supplier during the Term on terms that are more favorable to the offeree
than the terms of this Agreement. Supplier will lower the Award Prices or
increase any discount applicable to the purchase of the Products as necessary to
assure market competitiveness. If at any time during the Term Novation receives
information from any source suggesting that Supplier's prices, quality, value or
technology are not market competitive, Novation may provide written notice of
such information to Supplier, and Supplier will, within five (5) business days
for Novation's private label Products and within ten (10) business days for all
other Products, advise Novation in writing of and fully implement all
adjustments necessary to assure market competitiveness.

         d. CHANGES IN AWARD PRICES. Unless otherwise expressly agreed in any
exhibit to this Agreement, the Award Prices will not be increased and any
discount will not be eliminated or reduced during the Term. In addition to any
changes made to assure market competitiveness, Supplier may lower the Award
Prices or increase any discount applicable to the purchase of the Products at
any time.

         e. NOTIFICATION OF CHANGES IN PRICING TERMS. Supplier will provide all
Members with not less than forty-five (45) days' prior written notice and
Novation with not less than sixty (60) days' prior written notice of any change
in pricing terms permitted or required by this Agreement. For purposes of the
foregoing notification requirements, a change in pricing terms will mean any
change that affects the delivered price to the Member, including, without
limitation, changes in list prices, discounts or pricing tiers or schedules.
Such prior written notice will be provided in such format and in such detail as
may be required by Novation from time to time, and will include, at a minimum,
sufficient information to determine line item pricing of the Products for all
affected Members.

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3. TERM AND TERMINATION.

         a. TERM. This Agreement will be effective as of the effective date set
forth in the Award Letter ("Effective Date"), and, unless sooner terminated,
will continue in full force and effect for the initial term set forth in the
Non-Price Specifications and for any renewal terms set forth in the Non-Price
Specifications by Novation's delivery of written notice of renewal to Supplier
not less than ten (10) days prior to the end of the initial term or any renewal
term, as applicable. The initial term, together with the renewal terms, if any,
are collectively referred to herein as the "Term."

         b. TERMINATION BY NOVATION. Novation may terminate this Agreement at
any time for any reason whatsoever by delivering not less than ninety (90) days'
prior written notice thereof to Supplier. In addition, Novation may terminate
this Agreement immediately by delivering written notice thereof to Supplier upon
the occurrence of either of the following events:

                  (1) Supplier breaches this Agreement; or

                  (2) Supplier becomes bankrupt or insolvent or makes an
         unauthorized assignment or goes into liquidation or proceedings are
         initiated for the purpose of having a receiving order or winding up
         order made against Supplier, or Supplier applies to the courts for
         protection from its creditors.

         c. TERMINATION BY SUPPLIER. Supplier may terminate this Agreement at
any time for any reason whatsoever by delivering not less than one hundred
eighty (180) days prior written notice thereof to Novation.

4. PRODUCT SUPPLY.

         a. DELIVERY AND INVOICING. On and after the Effective Date, Supplier
agrees to deliver Products ordered by the Members to the Members, FOB
destination, and will direct its invoices to the Members in accordance with
this Agreement. Supplier agrees to prepay and absorb charges, if any, for
transporting Products to the Members. Payment terms are 2%-10, Net 30 days.
Supplier will make whatever arrangements are reasonably necessary with the
Members to implement the terms of this Agreement; provided, however, Supplier
will not impose any purchasing commitment on any Member as a condition to the
Member's purchase of any Products pursuant to this Agreement.

         b. PURCHASE ORDERS. This Agreement will govern all orders for and sales
of the Products by and to the Members, notwithstanding any pre-printed terms on
Supplier's forms; provided, however, the terms of the usual purchase orders of
the Members will supersede this Agreement in the event of conflict or
inconsistency.

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         c. PRODUCT FILL RATES; CONFIRMATION AND DELIVERY TIMES. Supplier agrees
to provide product fill rates to Members of greater than ninety-five percent
(95%), calculated as line item orders. Supplier will provide confirmation of
orders from Members via the electronic data interchange described in Subsection
7.c below within two (2) business days after placement of the order and will
deliver the Products to the Members within ten (10) business days after
placement of the order.

         d. BUNDLED TERMS. Supplier agrees to give Novation prior written notice
of any offer Supplier makes to any Member to sell products that are not covered
by this Agreement in conjunction with Products covered by this Agreement under
circumstances where the Member has no real economic choice other than to accept
such bundled terms.

         e. DISCONTINUATION OF PRODUCTS; CHANGES IN PACKAGING. Supplier will
have no unilateral right to discontinue any of the Products or to make any
changes in packaging which render any of the Products substantially different in
use, function, or distribution. Supplier may request Novation in writing to
agree to a proposed discontinuation of any Products or a proposed change in
packaging for any Products at least ninety (90) days prior to the proposed
implementation of the discontinuation or change. Under no circumstances will any
Product discontinuation or packaging changes be permitted under this Agreement
without Novation's agreement to the discontinuation or change. In the event
Supplier implements such proposed discontinuation or change without Novation's
agreement thereto in writing, in addition to any other rights and remedies
Novation or the Members may have by reason of such discontinuation or change,
(i) Novation will have the right to terminate any or all of the Product(s)
subject to such discontinuation or change or to terminate this Agreement in its
entirety immediately upon becoming aware of the discontinuation or change or any
time thereafter by delivering written notice thereof to Supplier, (ii) the
Members may purchase products equivalent to the discontinued or changed Products
from other sources and Supplier will be liable to the Members for all reasonable
costs in excess of the Award Prices plus any other damages which they may incur;
and (iii) Supplier will be liable to Novation and the Clients for any loss of
Marketing Fees resulting from such unacceptable discontinuation or change plus
any other damages which they may incur.

         f. REPLACEMENT OR NEW PRODUCTS. Supplier will have no unilateral right
to replace any of the Products listed in Exhibit A with other products or to add
new products to this Agreement. Supplier may request Novation in writing to
agree to a replacement of any of the Products or the addition of a new product
that is closely related by function or use to an existing Product at least sixty
(60) days prior to the proposed implementation of the replacement or to the new
product introduction. Under no circumstances will any Product replacement or new
product addition to this Agreement be permitted without Novation's agreement to
the replacement or new product.

         g. MEMBER SERVICES. Supplier will consult with each Member to identify
the Member's policies relating to access to facilities and personnel. Supplier
will comply with such policies and will establish a specific timetable for sales
calls by sales representatives to satisfy the needs of the Member. Supplier will
promptly respond to Members' reasonable requests for

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verification of purchase history. If requested by Novation or any Members,
Supplier will provide, at Supplier's cost, on-site inservice training to
Members' personnel for pertinent Products.

         h. PRODUCT DELETION. Notwithstanding anything to the contrary contained
in this Agreement, Novation may delete any one or more of the Products from this
Agreement at any time, at will and without cause, upon not less than sixty (60)
days' prior written notice to Supplier.

         i. RETURN OF PRODUCTS. Any Member, in addition to and not in limitation
of any other rights and remedies, will have the right to return Products to
Supplier under any of the following circumstances: (1) the Product is ordered or
shipped in error; (2) the Product is no longer needed by the Member due to
deletion from its standard supply list or changes in usage patterns, provided
the Product is returned at least six (6) months prior to its expiration date and
is in a re-saleable condition; (3) the Product is received outdated or is
otherwise unusable; (4) the Product is received damaged, or is defective or
nonconforming; (5) the Product is one which a product manufacturer or supplier
specifically authorizes for return; or (6) the Product is recalled. Supplier
agrees to accept the return of Products under these circumstances without charge
and for full credit.

         j. FAILURE TO SUPPLY. In the event of Supplier's failure to perform in
accordance with the terms of this Agreement, the Member may purchase products
equivalent to the Products from other sources and Supplier will be liable to the
Member for all reasonable costs in excess of the Award Prices plus any other
damages which they may incur. In such event, Supplier will also be liable to
Novation and the Clients for any loss of Marketing Fees resulting from such
failure plus any other damages which they may incur. The remedies set forth in
this Subsection are in addition to any other rights and remedies Novation, the
Clients or the Members may have resulting from such failure.

5. PRODUCT QUALITY.

         a. FREE FROM DEFECTS. Supplier warrants the Products against defects in
material, workmanship and design for the warranty period set forth in the
Non-Price Specifications ("Warranty Period"). Supplier will make all necessary
arrangements to assign such warranty to the Members. Supplier further represents
and warrants that the Products will conform to the specifications, drawings, and
samples furnished by Supplier or contained in the Non-Price Specifications and
will be safe for their intended use. If any Products are defective and a claim
is made by a Member on account of such defect during the Warranty Period,
Supplier will, at the option of the Member, either replace the defective
Products or credit the Member. Supplier will bear all costs of returning and
replacing the defective Products, as well as all risk of loss or damage to the
defective Products from and after the time they leave the physical possession of
the Member. The warranties contained in this Subsection will survive any
inspection, delivery, acceptance or payment by a Member. In addition, if there
is at any time wide-spread failure of the Products even after the Warranty
Period has ended, the Member may return all said Products for credit or
replacement, at its option. This Subsection and the obligations contained herein
will

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survive the expiration or earlier termination of this Agreement. The remedies
set forth in this Subsection are in addition to and not a limitation on any
other rights or remedies that may be available against Supplier.

         b. PRODUCT COMPLIANCE. Supplier represents and warrants to Novation,
the Clients and the Members that the Products are, if required, registered, and
will not be distributed, sold or priced by Supplier in violation of any federal,
state or local law. Supplier represents and warrants that as of the date of
delivery to the Members all Products will not be adulterated or misbranded
within the meaning of the Federal Food, Drug and Cosmetic Act and will not
violate or cause a violation of any applicable law, ordinance, rule, regulation
or order. Supplier agrees it will comply with all applicable Good Manufacturing
Practices and Standards contained in 21 C.F.R. Parts 210, 211, 225, 226, 600,
606, 610, 640, 660, 680 and 820. Supplier's representations, warranties and
agreements in this Subsection will survive the expiration or earlier termination
of this Agreement.

         c. PATENT INFRINGEMENT. Supplier represents and warrants that sale or
use of the Products will not infringe any United States patent. Supplier will,
at its own expense, defend every suit which will be brought against Novation or
a Member for any alleged infringement of any patent by reason of the sale or use
of the Products and will pay all costs, damages and profits recoverable in any
such suit. This Subsection and the obligations contained herein will survive the
expiration or earlier termination of this Agreement. The remedies set forth in
this Subsection are in addition to and not a limitation an any other rights or
remedies that may be available against Supplier.

         d. PRODUCT CONDITION. Unless otherwise stated in the Non-Price
Specifications or unless agreed upon by a Member in connection with Products it
may order, all Products will be new. Products which are demonstrators, used,
obsolete, seconds, or which have been discontinued are unacceptable unless
otherwise specified in the Non-Price Specifications or the Member accepts
delivery after receiving notice of the condition of the Products.

         e. RECALL OF PRODUCTS. Supplier will reimburse the Members for any cost
associated with any Product corrective action, withdrawal or recall requested by
Supplier or required by any governmental entity. In the event a product recall
or a court action impacting supply occurs, Supplier will notify Novation in
writing within twenty-four (24) hours of any such recall or action. Supplier's
obligations in this Subsection will survive the expiration or earlier
termination of this Agreement.

         f. SHELF LIFE. Sterile Products and other Products with a limited shelf
life sold under this Agreement will have the longest possible shelf life and the
latest possible expiration dates. Unless required by stability considerations,
there will not be less than an eighteen (18) month interval between a Product's
date of delivery by Supplier to the Member and its expiration date.

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6. CENTURY COMPLIANCE.

         a. DEFINITIONS. For purposes of this Section, the following terms have
the respective meanings given below:

                  (1) "Systems" means any of the Products, systems of
         distribution for Products and Product manufacturing systems that
         consist of or include any computer software, computer firmware,
         computer hardware (whether general or special purpose), documentation,
         data, and other similar or related items of the automated,
         computerized, and/or software systems that are provided by or through
         Supplier or utilized to manufacture or distribute the Products provided
         by or through Supplier pursuant to this Agreement, or any component
         part thereof, and any services provided by or through Supplier in
         connection therewith.

                  (2) "Calendar-Related" refers to date values based on the
         "Gregorian calendar" (as defined in the Encyclopedia Britannica, 15th
         edition, 1982, page 602) and to all uses in any manner of those date
         values, including without limitation manipulations, calculations,
         conversions, comparisons, and presentations.

                  (3) "Century Noncompliance" means any aspects of the Systems
         that fail to satisfy the requirements set forth in Subsection 6.b
         below.

         b. REPRESENTATIONS. Supplier warrants, represents and agrees that the
Systems satisfy the following requirements:

                  (1) In connection with the use and processing of
         Calendar-Related data, the Systems will not malfunction, will not cease
         to function, will not generate incorrect data, and will not produce
         incorrect results.

                  (2) In connection with providing Calendar-Related data to and
         accepting Calendar-Related data from other automated, computerized,
         and/or software systems and users via user interfaces, electronic
         interfaces, and data storage, the Systems represent dates without
         ambiguity as to century.

                  (3) The year component of Calendar-Related data that is
         provided by the Systems to or that is accepted by the Systems from
         other automated, computerized, and/or software systems and user
         interfaces, electronic interfaces, and data storage is represented in a
         four-digit CCYY format, where CC represents the two digits expressing
         the century and YY represents the two digits expressing the year within
         that century (e.g., 1996 or 2003).

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                  (4) Supplier has verified through testing that the Systems
         satisfy the requirements of this Subsection including, without
         limitation, testing of each of the following specific dates and the
         transition to and from each such date: December 31, 1998; January 1,
         1999; September 9, 1999; September 10, 1999; December 31, 1999; January
         1, 2000; February 28, 2000; February 29, 2000; March 1, 2000; December
         31, 2000; January 1, 2001; December 31, 2004; and January 1, 2005.

         c. REMEDIES. In the event of any Century Noncompliance in the Systems
in any respect, in addition to any other remedies that may be available to
Novation or the Members, Supplier will, at no cost to the Members, promptly
under the circumstances (but, in all cases, within thirty (30) days after
receipt of a written request from any Member, unless otherwise agreed by the
Member in writing) eliminate the Century Noncompliance from the Systems.

         d. NONCOMPLIANCE NOTICE. In the event Supplier becomes aware of (i) any
possible or actual Century Noncompliance in the Systems or (ii) any
international, governmental, industrial, or other standard (proposed or adopted)
regarding Calendar-Related data and/or processing, or Supplier begins any
significant effort to conform the Systems to any such standard, Supplier will
promptly provide the Members with all relevant information in writing and will
timely provide the Members with updates to such information. Supplier will
respond promptly and fully to inquiries by the Members, and timely provide
updates to any responses provided to the Members, with respect to (i) any
possible or actual Century Noncompliance in the Systems or (ii) any
international, governmental, industrial, or other standards. In the foregoing,
the use of "timely" means promptly after the relevant information becomes known
to or is developed by or for Supplier.

         e. SURVIVAL. Supplier's representations, warranties and agreements in
this Section will continue in effect throughout the Term and will survive the
expiration or earlier termination of this Agreement.

7. REPORTS AND ELECTRONIC DATA INTERCHANGE.

         a. REPORT CONTENT. Within twenty (20) days after the end of each full
and partial month during the Term ("Reporting Month"), Supplier will submit to
Novation a report in the form of a diskette containing the following information
in form and content reasonably satisfactory to Novation:

                  (1) the name of Supplier, the Reporting Month and year and the
         Agreement number (as provided to Supplier by Novation);

                  (2) with respect to each Member (described by LIC number (as
         provided to Supplier by Novation), health industry number (if
         applicable), full name, street address, city, state, zip code and, if
         applicable, tier and committed status), the number of units sold and
         the amount of net sales for each Product on a line item basis, and the
         sum of net sales and the associated Marketing Fees for all Products
         purchased by such Member directly or

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         indirectly from Supplier during the Reporting Month, whether under the
         pricing and other terms of this Agreement or under the terms of any
         other purchasing or pricing arrangements that may exist between the
         Member and Supplier.

                  (3) the sum of the net sales and the associated Marketing Fees
         for all Products sold to all Members during the Reporting Month; and

                  (4) such additional information as Novation may reasonably
         request from time to time.

         b. REPORT FORMAT AND DELIVERY. The reports required by this Section
will be submitted electronically in Excel Version 7 or Access Version 7 and in
accordance with other specifications established by Novation from time to time
and will be delivered to:

                  Novation
                  Attn: SRIS Operations
                  220 East Las Colinas Boulevard
                  Irving, TX 75039

         c. ELECTRONIC DATA INTERCHANGE. In addition to the reporting
requirements set forth in Subsections 7.a and 7.b above, the parties agree to
facilitate the administration of this Agreement by transmitting and receiving
data electronically. The parties agree to all terms and conditions set forth in
Exhibit D attached hereto.

8. OBLIGATIONS OF NOVATION.

         a. INFORMATION TO MEMBERS. After issuing the Award Letter, Novation, in
conjunction with the Clients, will deliver a summary of the purchasing
arrangements covered by this Agreement to each Member and will, from time to
time, at the request of Supplier, deliver to each Member reasonable and
appropriate amounts and types of materials supplied by Supplier to Novation
which relate to the purchase of the Products.

         b. MARKETING SERVICES. Novation, in conjunction with the Clients, will
market the purchasing arrangements covered by this Agreement to the Members.
Such promotional services may include, as appropriate, the use of direct mail,
contact by Novation's field service delivery team, member support services, and
regional and national meetings and conferences. As appropriate, Novation, in
conjunction with the Clients, will involve Supplier in these promotional
activities by inviting Supplier to participate in meetings and other reasonable
networking activities with Members.

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9. MARKETING FEES.

         a. CALCULATION. Supplier will pay to Novation, as the authorized
collection agent for the Clients, marketing fees ("Marketing Fees") belonging to
the Clients equal to the Agreed Percentage of the aggregate gross charges of all
net sales of the Products to the Members directly or indirectly from Supplier,
whether under the pricing and other terms of this Agreement or under the terms
of any other purchasing or pricing arrangements that may exist between the
Members and Supplier. Such gross charges will be determined without any
deduction for uncollected accounts or for costs incurred in the manufacture,
sale or distribution of the Products, and will include, but not be limited to,
charges for the sale of products, the provision of installation, training and
maintenance services, and the provision of any other services listed on Exhibit
A. The "Agreed Percentage" will be defined in the Award Letter.

         b. PAYMENT. On or about the Effective Date, Novation will advise
Supplier in writing of the amount determined by Novation to be Supplier's
monthly estimated Marketing Fees. Thereafter, Supplier's monthly estimated
Marketing Fees may be adjusted from time to time upon written notice from
Novation based on actual purchase data. No later than the tenth (10th) day of
each month, Supplier will remit the monthly estimated Marketing Fees for such
month to Novation. Such payment will be adjusted to reflect the reconciliation
between the actual Marketing Fees payable for the immediately preceding month
with the estimated Marketing Fees actually paid during such preceding month.
Supplier will pay all estimated and adjusted Marketing Fees by check made
payable to "Novation, LLC." All checks should reference the Agreement number.
Supplier will include with its check the reconciliation calculation used by
Supplier to determine the payment adjustment, with separate amounts shown for
each Client's component thereof. Checks sent by first class mail will be mailed
to the following address:

               Novation
               75 Remittance Dr., Suite 1420
               Chicago, IL 60675-1420

Checks sent by courier (Federal Express, United Parcel Service or messenger)
will be addressed as follows:

               The Northern Trust Company
               801 S. Canal St.
               4th Floor Receipt & Dispatch
               Chicago, IL 60607
               Attn: Novation, Suite 1420

10. ADMINISTRATIVE PENALTIES. In the event Supplier fails to pay the Marketing
Fees in accordance with the requirements of Section 9 above, Novation may
invoice Supplier for the Marketing Fees estimated by Novation to be due, payable
within ten (10) days of the date of such invoice. Invoice by Novation or payment
by Supplier will not relieve Supplier of its payment obligations under Section
9. In addition, upon the occasion of the first failure to receive

                                       10
<PAGE>   14

Marketing Fees, to receive reports described in Section 7 above, or to receive
notice of change in pricing terms described in Subsection 2.e above, in each
case within the time and manner required by this Agreement, Supplier will
receive a written warning. Upon the second and any subsequent failure to provide
such Marketing Fees, reports or notices, Supplier will pay an administrative
penalty in accordance with the following schedule:

<Table>
<S>                                                 <C>
                  2nd failure:                      $   500.00
                  3rd failure:                      $ 1,000.00
                  4th failure:                      $ 2,500.00
                  5th failure:                      $ 5,000.00
                  6th & each subsequent failure:    $10,000.00
</Table>

Novation's assessment of administrative penalties in accordance with this
Section will be in addition to any other rights and remedies Novation or the
Clients may have by reason of Supplier's failure to pay the Marketing Fees or
provide the reports or notices within the time and manner required by this
Agreement.

11. NONPAYMENT OR INSOLVENCY OF A MEMBER. If a Member fails to pay Supplier for
Products, or if a Member becomes bankrupt or insolvent or makes an assignment
for the benefit of creditors or goes into liquidation, or if proceedings are
initiated for the purpose of having a receiving order or winding up order made
against a Member, or if a Member applies to the courts for protection from its
creditors, then, in any such case, this Agreement will not terminate, but
Supplier will have the right, upon prior written notice to Novation and the
Member, to discontinue selling Products to that Member.

12. INSURANCE.

         a. POLICY REQUIREMENTS. Supplier will maintain and keep in force during
the Term product liability, general public liability and property damage
insurance against any insurable claim or claims which might or could arise
regarding Products purchased by the Members from Supplier. Such insurance will
contain a minimum combined single limit of liability for bodily injury and
property damage in the amounts of not less than $2,000,000 per occurrence and
$10,000,000 in the aggregate; will name Novation, the Clients and the Members,
as their interests may appear, as additional insureds, and will contain an
endorsement providing that the carrier will provide directly to all named
insured copies of all notices and endorsements. Supplier will provide to
Novation in its Bid and thereafter within fifteen (15) days after Novation's
request, an insurance certificate indicating the foregoing coverage, issued by
an insurance company licensed to do business in the relevant states and signed
by an authorized agent.

                                       11
<PAGE>   15

         b. SELF-INSURANCE. Notwithstanding anything to the contrary in
Subsection 12.a above, Supplier may maintain a self-insurance program for all or
any part of the foregoing liability risks, provided such self-insurance policy
in all material respects complies with the requirements applicable to the
product liability, general public liability and property damage insurance set
forth in Subsection 12.a. Supplier will provide Novation in its Bid, and
thereafter within fifteen (15) days after Novation's request: (1) the
self-insurance policy; (2) the name of the company managing the self-insurance
program and providing reinsurance, if any; (3) the most recent annual reports on
claims and reserves for the program; and (4) the most recent annual actuarial
report on such program.

         c. AMENDMENTS, NOTICES AND ENDORSEMENTS. Supplier will not amend, in
any material respect that affects the interests of Novation, the Clients or the
Members, or terminate said liability insurance or self-insurance program except
after thirty (30) days' prior written notice to Novation and will provide to
Novation copies of all notices and endorsements as soon as practicable after it
receives or gives them.

13. COMPLIANCE WITH LAW. Supplier represents and warrants that to the best of
its knowledge, after due inquiry, it is in compliance with all federal and state
statutes, laws, ordinances and regulations applicable to it ("Legal
Requirements") which are material to the operation of its business and the
conduct of its affairs, including Legal Requirements pertaining to the safety of
the Products, occupational health and safety, environmental protection,
nondiscrimination, antitrust, and equal employment opportunity. During the Term,
Supplier will: (1) promptly notify Novation of any lawsuits, claims,
administrative actions or other proceedings asserted or commenced against it
which assert in whole or in part that Supplier is in noncompliance with any
Legal Requirement which is material to the operation of its business and the
conduct of its affairs and (2) promptly provide Novation with true and correct
copies of all written notices of adverse findings from the U.S. Food and Drug
Administration ("FDA") and all written results of FDA inspections which pertain
to the Products.

14. HOLD HARMLESS. Supplier will indemnify, hold harmless, and, if requested,
defend Novation, the Clients and the Members, and their respective officers,
directors, regents, agents, affiliates and employees, from and against any
claims, liabilities, damages, actions, costs and expenses (including reasonable
attorneys' fees and court costs) of any kind or nature, whether at law or in
equity, arising from or caused by (1) the breach of any representation,
warranty, covenant or agreement of Supplier contained in this Agreement or in
the Bid, or (2) the condition of any Product at the time of its delivery to a
Member pursuant to this Agreement, including a defect in material, workmanship
or design, whether such breach or condition is caused by the negligence of any
person seeking indemnification hereunder or otherwise; provided that such
indemnification, hold harmless and right to defense will not be applicable where
the claim, liability, damage, action, cost or expense arises solely as a result
of an act or failure to act of the person seeking to be indemnified, held
harmless or defended hereunder. This Section and the obligations contained
herein will survive the expiration or earlier termination of this Agreement. The
remedies set forth in this Section are in addition to and not a limitation on
any other rights or remedies that may be available against Supplier.

                                       12
<PAGE>   16

15. BOOKS AND RECORDS; FACILITIES INSPECTIONS. Supplier agrees to keep, maintain
and preserve complete, current and accurate books, records and accounts of the
transactions contemplated by this Agreement and such additional books, records
and accounts as are necessary to establish and verify Supplier's compliance with
this Agreement. All such books, records and accounts will be available for
inspection and audit by Novation representatives at any time during the Term and
for two (2) years thereafter, but only during reasonable business hours and upon
reasonable notice. Novation agrees that its routine audits will not be conducted
more frequently than twice in any consecutive twelve (12) month period, subject
to Novation's right to conduct special audits whenever it deems it to be
necessary. In addition, Supplier will make its manufacturing and packaging
facilities available for inspection from time to time during the Term by
Novation representatives, but only during reasonable business hours and upon
reasonable notice. The exercise by Novation of the right to inspect and audit is
without prejudice to any other or additional rights or remedies of either party.

16. USE OF NAMES, ETC. Supplier agrees that it will not use in any way in its
promotional, informational or marketing activities or materials (i) the names,
trademarks, logos, symbols or a description of the business or activities of
Novation or any Client or Member without in each instance first obtaining the
prior written consent of the person owning the rights thereto; or (ii) the award
or the content of this Agreement without in each instance first obtaining the
prior written consent of Novation.

17. CONFIDENTIAL INFORMATION.

         a. NONDISCLOSURE. Supplier agrees that it will:

                  (1) keep strictly confidential and hold in trust all
         confidential information of Novation, the Clients and the Members;

                  (2) not use the confidential information for any purpose other
         than the performance of its obligations under this Agreement, without
         the prior written consent of Novation;

                  (3) not disclose the confidential information to any third
         party (unless required by law) without the prior written consent of
         Novation; and

                  (4) not later then thirty (30) days after the expiration or
         earlier termination of this Agreement, return to Novation, the Client
         or the Member, as the case may be, the confidential information.

         b. DEFINITION. "Confidential information", as used in Subsection 17.a
above, will consist of all information relating to the prices and usage of the
Products (including all information contained in the reports produced by
Supplier pursuant to Section 7 above) and all documents and other materials of
Novation, the Clients and the Members containing information relating to the
programs of Novation, the Clients or the Members of a proprietary or sensitive
nature not readily available through sources in the public domain. In no event
will Supplier

                                       13
<PAGE>   17

provide to any person any information relating to the prices it charges the
Members for Products ordered pursuant to this Agreement without the prior
written consent of Novation.

18. MISCELLANEOUS.

         a. CHOICE OF LAW. This Agreement will be governed by and construed in
accordance with the internal substantive laws of the State of Texas and the
Texas courts will have jurisdiction over all matters relating to this Agreement;
provided, however, the terms of a Member's purchase order will be governed by
and construed in accordance with the choice of law and venue provisions set
forth in the purchase order.

         b. NOT RESPONSIBLE. Novation and the Clients will not be responsible or
liable for any Member's breach of any purchasing commitment or for any other
actions of any Member. In addition, none of the Clients will be responsible or
liable for the obligations of any party to this Agreement.

         c. THIRD PARTY BENEFICIARIES. All Clients and Members are intended
third party beneficiaries of this Agreement. All terms and conditions of this
Agreement which are applicable to the Clients will inure to the benefit of and
be enforceable by the Clients and their respective successors and assigns. All
terms and conditions of this Agreement which are applicable to the Members will
inure to the benefit of and be enforceable by the Members and their respective
successors and assigns.

         d. NOTICES. Except as otherwise expressly provided herein, all notices
or other communications required or permitted under this Agreement will be in
writing and will be deemed sufficient when mailed by United States mail, or
delivered in person against receipt to the party to which it is to be given, at
the address of such party set forth below:

          If to Supplier:

                   To the address set forth by Supplier in the Bid

          If to Novation:

                   Novation
                   Attn: Vice President, Contract Services
                   220 East Las Colinas Blvd.
                   Irving, TX 75039

or to such other address as the party will have furnished in writing in
accordance with the provisions of this Subsection.

         e. NO ASSIGNMENT. No assignment of all or any part of this Agreement
may be made without and consent of the other party; except that Novation
may assign its rights the prior written obligations to any affiliate of
Novation. Any assignment of all or any part of this

                                       14
<PAGE>   18

Agreement by either party will not relieve that party of the responsibility of
performing its obligations hereunder to the extent that such obligations are
not satisfied in full by the assignee. This Agreement will be binding upon and
inure to the benefit of the parties' respective successors and assigns.

         f. SEVERABILITY. Whenever possible, each provision of this Agreement
will be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Agreement will be prohibited by or
invalid under applicable law, such provision will be ineffective to the extent
of such prohibition or invalidity without invalidating the remainder of such
provision or the remaining provisions of this Agreement. Each party will, at its
own expense, take such action as is reasonably necessary to defend the validity
and enforceability of this Agreement and will cooperate with the other party as
is reasonably necessary in such defense.

         g. ENTIRE AGREEMENT. This Agreement, together with the exhibits listed
below and each Member's purchase order will constitute the entire agreement
between each Member and Supplier and no other terms and conditions in any
document, acceptance, or acknowledgment will be effective or binding upon a
Member unless expressly agreed to in writing. The following exhibits are
incorporated by reference in this Agreement:

Exhibit A         Product and Service Description and Pricing

Exhibit B         Non-Price Specifications

Exhibit C         Award Letter

Exhibit D         Electronic Data Interchange Agreement

Exhibit E         Exceptions to the Supplier Agreement CE8006B

SUPPLIER:         Universal Hospital Services, Inc.
                  ----------------------------------
ADDRESS:          1250 Northland Plaza
                  ----------------------------------
                  3800 West 80th St.
                  ----------------------------------
                  Bloomington, MN 55431-4442
                  ----------------------------------

SIGNATURE:        /s/ [ILLEGIBLE]
                  ----------------------------------
TITLE:            Chief Financial Officer                   DATE: 11/20/98
                  ----------------------------------              --------------

                                       15
<PAGE>   19
                              [NOVATION LETTERHEAD]

November 13, 2000

Mr. Jim Ekbom
National Accounts Manager
Universal Hospital Services, Inc.
3800 West 80th Street, Suite 1250
Bloomington, MN 55431-4442

RE: Novation Supplier Agreement #CE80061

Dear Jim:

Pursuant to the recent conversation between our two companies, Novation, LLC and
Universal Hospital Services, Inc. (UHS) hereby agree to extend the above
referenced Supplier Agreement between them, dated as of the Award Letter date of
December 8, 1998, through December 31, 2001.

     Effective January 1, 2001, and with regard to Exhibit A of the Agreement:

     (1)  The current Exhibit A attached to the December 8, 1998 Agreement, is
          replaced with the New Exhibit A attached hereto.

     (2)  Volume discounts shall be available only to Members whose accounts
          receivable with UHS are within the net 30-day terms of the Agreement.

     (3)  Volume discounts shall not be applied to monitoring systems or Long
          Term Rental Agreements.

     (4)  The Conversion Incentive Agreement shall cease.

     (5)  Members shall be responsible for all loss of or damage to equipment
          while in their possession.

     (6)  UHS will negotiate appropriate pricing methods with each Member
          facility.

     Also effective January 1, 2001, and with regard to Exhibit B of the
Agreement:

     (1)  The marketing fee identified in the current Exhibit B attached to the
          December 8, 1998 Agreement, is amended from three percent (3%) to
          two percent (2%).

     (2)  Marketing fees shall be paid on all Member sales, excepting those
          Members who have provided UHS written notification that they will be
          purchasing through another hospital alliance or group purchasing
          organization.

     (3)  Upon request, UHS will provide Novation written notification of those
          Members providing notice of election to purchase through another
          hospital alliance or group purchasing organization.

<PAGE>   20

Jim Ekbom
Universal Hospital Services, Inc.
November 13, 2000
Page Two

All other terms and conditions of the Agreement remain unchanged and in full
force and effect. If this evidences your understanding of our agreement, please
so indicate by signing in the space provided below and returning this letter to
the attention of John Engles. A copy of this letter is provided for your
records.

Very truly yours,

/s/ ROBERT C. BENSON

Robert C. Benson
Vice President
Contract and Program Services

AGREED TO AND ACCEPTED TO THIS 16 DAY OF NOVEMBER, 2000.

Universal Hospital Services, Inc.

By: /s/ GARY PRESTON
    ---------------------------------------------
Printed Name: Gary Preston
              -----------------------------------
Title: V.P. - National Accounts/Asset Management
       ------------------------------------------
Date: 11-16-00
      -------------------------------------------<PAGE>   1

                                                                   EXHIBIT 10.17

                     PREMIER TECHNOLOGY MANAGEMENT, L.L.C.
                           GROUP PURCHASING AGREEMENT
                                  COVER SHEET

1. The "Parties" to this Group Purchasing Agreement are:

      Premier Technology Management, L.L.C.          UNIVERSAL HOSPITAL SERVICES
                                              ----------------------------------
      ("Tech Management")                                ("Seller")
      12225 El Camino Real                           12500 Northland Plaza
                                              ----------------------------------

                                              ----------------------------------
      San Diego, CA 92130                            Bloomington, MN 55431-4442
                                              ----------------------------------
      Attention: Vice President, Procurement  Attention: James T. Ekbom
                                                                        --------
      (619) 481-2727                          (613) 829-3268
                                                            -----------
      (619) 794-7959 (fax)                    (613) 893-2948            (fax)
                                                            -----------

2. Product Category:                          Rental Clinical Equipment
                                          --------------------------------------
3. Effective Date:                        03/01/99
                                          --------
4. Expiration Date:                       02/28/02
                                          --------
5. Term of Agreement:                            36   months
                                          -----------
6. Tech Management Administrative Fee:           2   %  (Section 10.1)
                                          -----------
7. Large Order Dollar Threshold:          $  (see footnotes -- Exhibit A)
                                           --

      This Group Purchasing Agreement (the "Agreement") is comprised of the
following documents and is entered into by the Parties effective as of the
Effective Date set forth in Item 3 above:

      i.   This Cover Sheet;

      ii.  The attached Tech Management Standard Terms and Conditions;

      iii. The attached Additional Terms and Conditions (if any); and

      iv.  The following attached exhibits:

            Exhibit A:  PRODUCTS AND PRICING / COMMITMENT DOCUMENTS

            Exhibit B:  ROSTER OF PARTICIPATING MEMBERS

            Exhibit C:  DISTRICT OFFICES

            Exhibit D:  REPORTING FORMATS

            Exhibit E:  PAYMENT INSTRUCTIONS

            Exhibit F:  MINORITY AND FEMALE-OWNED BUSINESSES POLICY

            Exhibit G:  ORDERING INSTRUCTIONS

            Exhibit H:  CONVERSION INCENTIVE

            Exhibit I:  ASSET MANAGEMENT PARTNERSHIP PROGRAM

            Exhibit J:  QUALITY GUARANTEE, AVAILABILITY GUARANTEE, BILLING
                        GUARANTEE

            Exhibit K:  VALUE ADDS

            Exhibit L:  RETURN GOODS POLICY

PREMIER TECHNOLOGY MANAGEMENT, L.L.C.     UNIVERSAL HOSPITAL SERVICES, INC
                                             ("Seller")
By: /s/ MICHAEL MIYAGI                    By: /s/ DAVID E. DOVENBERG
    ---------------------------------         ---------------------------------
Printed Name: Michael Miyagi              Printed Name: David E. Dovenberg
Title: Vice President, Capital            Title: President and CEO
       Equipment Procurement
<PAGE>   2
                     PREMIER TECHNOLOGY MANAGEMENT, L.L.C.
                         STANDARD TERMS AND CONDITIONS
--------------------------------------------------------------------------------
                           GROUP PURCHASING AGREEMENT
--------------------------------------------------------------------------------

WHEREAS, Tech management is an affiliate of Premier, Inc. ("Premier"), the
nation's largest alliance of hospitals and health care organizations;

         WHEREAS, Premier's core objective is to improve the health of
communities;

         WHEREAS, such core objective as well as the objective of helping to
assure that patients receive safe and efficacious care can be accomplished, in
part, by achieving economics of scale and innovations through group strategies
and shared resources;

         WHEREAS, group purchasing is a fundamental way hospitals and health
systems cooperate to reduce the costs of providing health services;

         WHEREAS, Premier's capital equipment group purchasing program is
operated by Tech Management;

         WHEREAS, Lessor is a leading supplier of capital equipment;

         WHEREAS, Lessor has offered to provide Products and services to the
Premier membership consistent with the terms of this Agreement;

         NOW THEREFORE, in consideration of the mutual promises contained herein
and other good and sufficient consideration, the receipt and adequacy of which
is hereby acknowledged, the Parties hereto agree as follows:

1.0 TERM OF AGREEMENT. This Agreement will remain in effect for the period of
time set forth in Item 5 of the Cover Sheet.

2.0 PRODUCTS COVERED. Lessor hereby agrees to provide the products and services
described in Exhibit A hereto (referred to herein as "Products" and "Services")
on a peak need rental basis pursuant to the terms of this Agreement. Also, see
Schedule 1, Value Added.

3.0 PARTICIPATING MEMBERS. Set forth in Exhibit B hereto is a list of the
Premier members who shall have the right to rent Products in accordance with
this Agreement ("Participating Members"). Exhibit B may be amended by Tech
Management from time to time upon written notice to Renter. Tech Management
shall have the right to provide Exhibit B to Lessor on computer diskette rather
than in printed form. Tech Management shall provide Lessor with written notice
of any entities/hospitals which have been removed from Exhibit B and are
therefore no longer Participating Members (the "Removal Notice"). Lessor shall
stop providing the pricing set forth herein to such removed entities/hospitals
sixty (60) days after Lessor's receipt of the Removal Notice.

Tech Management shall require Participating Members to terminate their
participation in the buying programs of other group purchasing organizations as
a condition to participation in Tech Management's group purchasing program. To
this end, Lessor will not offer or otherwise make the Products available to
Participating Members through arrangements with other group purchasing
organizations. Further, Lessor shall promptly notify Tech Management of any
Participating Members which are listed or shown in Lessor's records as being
participants in other group purchasing organizations that have arrangements with
Lessor for the Products.

4.0 COMMITMENT REQUIREMENTS. In order to be entitled to the pricing terms
(described in Exhibit A hereto), Participating Members shall comply with the
commitment requirements set forth in Exhibit A. See also Schedule 2, Conversion
Incentive Agreement.

5.0 TERMINATION OF EXISTING CONTRACTS. Any Participating Member desiring to
avail itself of the benefits of this Agreement may, at its option and without
liability, terminate any Rent peak need rental agreement(s) with Lessor for the
purpose of participating in the group purchasing arrangement set forth in this
Agreement.

6.0 ORDERING, SHIPPING, DELIVERY.

         6.1 AUTHORIZED DISTRIBUTORS. All Products rented pursuant to this
Agreement by Participating Members which are not rented directly from Lessor,
where applicable, may be rented from and through one of Lessor's authorized
distributors ("Authorized Distributors"). A list of all current Authorized
Distributors is set forth in Exhibit C. Lessor warrants that it shall not make
any change or take any action with respect Authorized Distributors which, if
implemented, would materially change the ultimate delivered price paid by the
Participating Member.

         6.2 PAYMENT TERMS. For Product(s) not requiring installation by Lessor,
one hundred percent (100%) of the rent price must by paid within forty-five (45)
days. See also, Billing Guarantee, Schedule 3. Payment terms for Products rented
from an Authorized Distributor will be negotiated between each Participating
Member and the Authorized Distributor.

         63. ORDERING; SHIPPING TERMS. Orders directly from Lessor shall be
placed by telephone, telecopier or through electronic order entry in accordance
with the ordering instructions set forth hereto as Exhibit G. Order processing
procedures for orders placed with Authorized Distributors will be negotiated
between each Participating Member and the Authorized Distributor. Within 50
miles of UHS District Office (See District Office Map, Schedule 4.) all
shipments direct form Lessor shall be Net F.O.B. destination, with all costs of

UHS                                    1
--------------------------------------------------------------------------------
(c) 1998 BY PREMIER TECHNOLOGY MANAGEMENT, L.L.C. THIS DOCUMENT MAY NOT BE
REPRODUCED IN ANY FORM WITHOUT THE EXPRESS PERMISSION OF PREMIER TECHNOLOGY
MANAGEMENT, L.L.C.
--------------------------------------------------------------------------------
<PAGE>   3
transportation and insurance being paid by Lessor, with the exception of UHS
Suction Shutdown Program, special delivery and/or air shipments requested by
Participating Members. Such special delivery and/or air shipment charges shall
be prepaid by Lessor and invoiced to the requesting Participating Member for
such member's payment pursuant to the payment terms set forth in Section 6.2 of
this Agreement. Risk of loss shall transfer to Participating Members upon
delivery. Shipping costs outside of the UHS Service Geography will be actual
common carrier costs. Shipping terms for Products rented from an Authorized
Distributor will be negotiated between each Participating Member and the
Authorized Distributor.

         6.4  MINIMUM ORDER. Lessor shall have no minimum rent order requirement
applicable to any or all Participating Members within UHS service geography, as
described in 6.3. For Products rented from an Authorized Distributor, any
minimum order rent requirement will be negotiated between each Participating
Member and the Authorized Distributor.

         6.5  GUARANTEE OF DELIVERY. If Lessor fails to deliver any Product(s)
within the agreed-upon time periods set forth in Schedule 5, Availability
Guarantee hereto, the Participating Member in its sole discretion may either:
rent any substitute product(s) from another source or sources and Lessor shall
reimburse such member for the difference between such member's actual F.O.B.
destination acquisition cost for such product(s) and the price(s) such member
would have paid for Lessor's Product(s) not to exceed twice the rate listed on
Exhibit A under this Agreement. Upon the request of any Participating Member,
Lessor will assist any such Participating Member in finding alternative
acceptable sources for any Product(s) which Lessor cannot deliver according to
agreed-upon time periods.

         For orders placed with an Authorized Distributor, guarantee of delivery
provisions will be negotiated between each Participating Member and the
Authorized Distributor. If the Authorized Distributor fails to deliver any
Product(s) within the foregoing negotiated time period because Lessor has failed
to provide the Product(s) to the Authorized Distributor, the Participating
Member may rent any substitute product(s) from another source(s), and Lessor
shall reimburse such member for the difference between such member's actual
F.O.B. destination acquisition cost for such product(s) and the price(s) such
member would have paid for Lessor's Product(s), not to exceed twice the rate
listed on Exhibit A, under this Agreement, provided that Lessor is notified by
the Participating Member of such failure to deliver and cannot provide an
alternative Product acceptable to the Participating Member at the same price.
Upon the request of any Participating Member, Lessor will assist any such
Participating Member in finding alternative acceptable sources for any
Product(s) which an Authorized Distributor cannot deliver according to the
guaranteed delivery time specified above.

         6.6 GUARANTEE OF DELIVERY UNDER EMERGENCY CONDITIONS. In the event of a
natural disaster or industry wide shortage of Products ("Emergency Condition"),
Lessor agrees to give priority to orders placed by Premier Members who have
signed the Availability Guarantee, Schedule 5 and the Letter of Commitment,
Schedule 6 for Products during the duration of the Emergency Condition. Lessor
will use best efforts to set aside an adequate quantity of Products for the
exclusive rent by Participating Members for the duration of the Emergency
Condition.

         6.7 INSTALLATION. Included in the price of the Product(s), Lessor will
be fully responsible for performing all tasks necessary to install the
Product(s), including without limitation, uncrating, unpacking, removal of
packing material, field assembly, interconnection, calibration and testing to
ensure that the Product(s) conform(s) to the product manufacturer's
specifications and is completely ready to perform all procedures for which it is
designed and marketed by Lessor.

         6.8 ACCEPTANCE. "Acceptance" of Products by Participating Members shall
be deemed to have occurred when Lessor and the applicable Participating Member
in good faith mutually agree that the Product(s) is/are (i) operating according
to Specifications and (ii) completely ready for clinical use. In addition, each
Participating Member shall have the option, at its own expense, to test the
Product(s) to confirm the safety, reliability and performance of the Product(s)
and to perform corollary or parallel testing to verify the accuracy of the
Product(s)' performance.

         6.9 REJECTION OF PRODUCTS. See Schedule 7, Quality Guarantee.

         6.10 RETURN OF PRODUCTS; RESTOCKING FEE. Notwithstanding anything to
the contrary herein, Participating Members shall not have the right to return
Products which are considered disposable or consumable if such Products' useful
shelf-life has expired (as identified on the product label). All such
disposable/consumable Product(s) must be returned in original packages, cases,
or cartons. In no event shall Lessor have the right to charge a restocking fee
in connection with any returns of Product(s) under this Agreement. Lessor's
return goods policy, if any, is set forth in Exhibit L.

7.0 PRICING TERMS.

         7.1 PRICING. Product pricing is set forth in Exhibit A hereto.
Throughout the term of this Agreement, Lessor shall not increase any of the
prices set forth in Exhibit A. In the event a single order equals or exceeds the
"large order" dollar threshold set forth in Item 7 of the Cover Sheet, Lessor
shall grant additional discounts as negotiated between Lessor and applicable
Participating Members. Lessor shall provide Tech Management advance notice of
any order qualifying for a "large order" discount or incentive. Lessor shall
also grant trade-in allowances applied to the rent of the Product(s). The
reasonable value of such allowances shall be based on the model, age, condition
and volume of trade-in items. Further, all discounts provided for in this
Agreement (including without limitation large order discounts) shall be
calculated off list price.

         7.2 BEST PRICING. Subject to applicable law, Lessor represents and
warrants that the prices, terms and conditions offered by Lessor to Tech
Management through this Agreement shall, at all times, be better than those
offered to any other customer which rents a comparable volume (or a lower
volume) of Products relative to the volume rented by Participating Members
hereunder. Lessor also agrees to extend any terms or pricing of peak need rental
business offered to an individual Participating Member to all Participating
Members. Notwithstanding any other provision of this Agreement, upon obtaining
the prior written consent of Tech Management (which may be withheld in
Purchasing Partner's sole discretion), Lessor may, under certain circumstances
(e.g., Beta testing, research and development related activities) and for a
specified reasonable period of time, offer special acquisition programs
(including without limitation, group buys) to certain designated Participating
Members, the terms of

                                       2
-------------------------------------------------------------------------------
(c) 1998 BY PREMIER TECHNOLOGY MANAGEMENT, L.L.C. THIS DOCUMENT MAY NOT BE
REPRODUCED IN ANY FORM WITHOUT THE EXPRESS PERMISSION OF PREMIER TECHNOLOGY
MANAGEMENT, L.L.C.
-------------------------------------------------------------------------------
<PAGE>   4
which shall be mutually agreed upon by Lessor, Tech Management and such
Participating Members.

         7.3 PRICING OF NEW PRODUCTS. Pricing for any additional and/or new
Products which the parties mutually agree to add to Exhibit A will be negotiated
at prices consistent with the prices of Products already covered by this
Agreement. Lessor agrees to inform Tech Management of new Products (branded or
generic) that Lessor plans to introduce to the market as far in advance as
possible.

8.0 MARKETING/SALES SUPPORT/TRAINING.

         8.1 LESSOR REPRESENTATIVES. Lessor will provide representatives to call
upon Participating Members on a periodic basis mutually agreed to by Lessor and
each individual Participating Member.

         8.2 USER TRAINING. Upon request, Lessor will provide at no additional
charge user training related to the Products, including without limitation,
equipment operation and in-service training, as reasonably required or requested
by each Participating Member. Lessor will maintain a properly qualified training
staff to provide such training, and Lessor will be solely responsible for any
expenses for staff travel, room and board related to such training. The
scheduling of training shall be coordinated directly with each Participating
Member and shall accommodate all shifts that require training.

Lessor will also provide to the Participating Member upon request and at no
additional charge a written training guide and/or set of training video tapes to
be used for future training by Participating Member staff.

Also included in the price of the Product(s) upon request, Lessor shall supply
Participating Members with the following items prior to or at the time of
delivery of the Product(s): two (2) copies of operator manuals covering all
equipment and accessories; Upon request, Lessor shall provide at no additional
charge all updates to manuals and final versions (where applicable) of manuals
throughout the useful life of the Product(s).

If approved by Manufacturers, Participating Members shall have the right to make
copies, for internal purposes only, of any training materials provided by
Lessor.

         8.3 BIOMEDICAL TRAINING/TECHNICAL

not applicable

         8.4 DEMONSTRATION MODELS FOR EVALUATION. Upon the request of Tech
Management or Participating Member, Lessor shall provide demonstration models,
where practical, of the Product(s) and any appropriate consumables/disposables
required to operate and evaluate the Product(s) to any Participating Members at
no charge for a mutually agreed upon time period.

         8.5 SERVICE AND MAINTENANCE AGREEMENTS. The form of Lessor's service
and maintenance agreement(s), which include pricing and service descriptions, is
set forth as Schedule 7 hereto. Such form agreement(s) are subject to Tech
Management's prior approval.

9.0 PRODUCT PRICING INFORMATION; SALES DOCUMENTATION; ADMINISTRATIVE FEE.
    REPORTING.

         9.1 PRODUCT PRICING INFORMATION (SALES CATALOGS). Lessor will provide
to Tech Management product pricing information in the ANSI X.12 format as
detailed in Exhibit D. If Lessor cannot provide product pricing information in
this format, Lessor may utilize one of the alternative formats detailed in
Exhibit D. Tech Management shall have the right to provide Exhibit D to Lessor
on computer diskette rather than in printed form and to update Exhibit D from
time to time.

         9.2 SALES DOCUMENTATION. Lessor will provide Tech Management with
quarterly reports of all Products rented by and delivered to each Participating
Member during each calendar quarter of the term. Lessor shall provide Tech
Management such reports no later than sixty (60) days after the last day of the
applicable calendar quarter. Reports will include, without limitation, reporting
period start and end dates, Participating Member name, city, state, and sales
volume per Product (totaled per Participating Member). Participating Members
will be identified by HIN and/or DEA number. Lessor will provide such sales
information in the ANSI X.12 format as detailed in Exhibit D. If Lessor cannot
provide such information in this format, Lessor may utilize one of the
alternative formats detailed in Exhibit D.

         9.3 TECH MANAGEMENT ADMINISTRATIVE FEE REPORTING. Lessor will provide
Tech Management with quarterly reports setting forth the Tech Management
Administrative Fee (as defined in Article 10 below) amounts generated by each
Participating Member during each calendar quarter of the term. Lessor shall
provide Tech Management such reports no later than sixty (60) days after the
last day of the applicable calendar quarter. Participating Members will be
identified by HIN and/or DEA number. Lessor will provide such information in the
ANSI X.12 format as detailed in Exhibit D. If Lessor cannot provide such
information in this format, Lessor may utilize one of the alternative formats
detailed in Exhibit D.

         9.4 PARTICIPATING MEMBERS' EDI TRANSACTION SETS. Lessor shall use best
efforts to accommodate the requests of Participating Members with respect to
Lessor's use of Electronic Data Interchange ANSI X.12 Transaction Sets,
including without limitation, Transaction Sets 810 (invoice), 820 (payment
order/remittance advice), 832 (price/sales catalog), 850 (rent order), 855 (rent
order acknowledgment), 856 (ship notice/manifest), 844 (product transfer account
adjustment), and 849 (response to product transfer account adjustment [or charge
back or rebate]).

10.0 FEES

         10.1 TECH MANAGEMENT ADMINISTRATIVE FEE. Lessor will pay Tech
Management an administrative fee (the "Tech Management Administrative Fee")
equal to the percentage set forth in Item 6 of the Cover Sheet of the total net
(less discounts and rebates) dollar volume of Products rented by Participating
Members through Lessor or through any Authorized Distributors during the term of
this Agreement. For purposes of this Agreement, a Product will be deemed to have
been "rented" on the date it is delivered to a Participating Member.

         10.2 MANNER OF PAYMENT. Lessor will pay to Tech Management the Tech
Management Administrative Fee quarterly, without demand or notice, within sixty
(60) days after the end of each calendar quarter during the term hereof.

         All payments shall be by wire or electronic transfer to the account of
"Premier Technology Management, L.L.C." or by a check payable to "Premier
Technology Management, L.L.C." in accordance with the written instructions set
forth in Exhibit E. Lessor shall pay to Tech Management interest on any past due
amount owing Tech Management hereunder at the lesser of (i) one and one-half
percent (1-1/2%) per month or (ii) the maximum interest rate legally permitted.

11.0 COMPLIANCE WITH LAWS AND REGULATIONS. Lessor represents and warrants that
throughout the term of this

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Agreement and any extension hereof, Lessor and all Products shall be and shall
remain in compliance with all applicable federal, state and local laws and
regulations, including without limitation all applicable "safe harbor"
regulations relating to group purchasing organizations and fees, discounts and
incentives paid and/or granted to group purchasing organizations and any
participants therein. Lessor shall disclose to Participating Members, per
applicable regulations, the specified dollar value of discounts or reductions in
price. The Parties acknowledge and agree that for purposes of 42 C.F.R. Section
1001.952(h), any reduction in the amount Lessor charges a Participating Member
(excluding group purchasing organization fees, such as the Tech Management
Administrative Fee) is a "discount or other reduction in price" to the
Participating Member. Participating Members shall disclose the specified dollar
value of discounts or reductions in price under any state or federal program
which provides cost or charge-based reimbursement to such Participating Members
for the Products and services covered by this Agreement in accordance with
applicable regulations.

         Lessor agrees that, until the expiration of four (4) years after the
furnishing of any goods and services pursuant to this Agreement, it will make
available, upon written request of the Secretary of Health and Human Services or
the Comptroller General of the United States or any of their duly authorized
representatives, copies of this Agreement and any books, documents, records and
other data of Renter that are necessary to certify the nature and extent of the
costs incurred by Participating Members in purchasing such goods and services.
If Lessor carries out any of its duties under this Agreement through a
subcontract with a related organization involving a value or cost of ten
thousand dollars ($10,000) or more over a twelve-month period, Lessor will cause
such subcontract to contain a clause to the effect that, until the expiration of
four (4) years after the furnishing of any good or service pursuant to said
contract, the related organization will make available upon written request of
the Secretary of Health and Human Services or the Comptroller General of the
United States or any of their duly authorized representatives, copies of this
Agreement and any books, documents, records and other data of said related
organization that are necessary to certify the nature and extent of costs
incurred by Lessor or such goods or services. Lessor shall give Tech Management
notice immediately upon receipt of any request from the Secretary of Health and
Human Services or the Comptroller General of the United States or any of their
duly authorized representatives for disclosure of such information.

12.0 INDEMNIFICATION, WARRANTIES, SPECIFICATIONS AND NOTICES.

         12.1 INDEMNIFICATION. Lessor hereby agrees to indemnify, defend and
hold harmless Tech Management and each Participating Member and their respective
directors, officers, employees, agents and insurers from and against any and all
claims, demands, actions, losses, expenses, damages, liabilities, costs
(including, without limitation, interest, penalties and reasonable attorneys'
fees) and judgments arising out of: (a) bodily injury, property damage or any
other damage or injury caused by any of the Products covered by this Agreement,
and (b) the negligent acts or omissions of Lessor and its employees and agents
acting under its control or supervision. Tech Management hereby agrees to
indemnify, defend and hold harmless Lessor and its directors, officers,
employees, agents and insurers from and against any and all claims, demands,
actions, losses, expenses, damages, liabilities, costs (including, without
limitation, interest, penalties and reasonable attorneys' fees) and judgments
arising out of the negligent acts or omissions of Tech Management and its
employees and agents acting under its control or supervision.

         12.2 WARRANTIES AND PUBLISHED SPECIFICATION. See Quality Guarantee,
Schedule 7.

         12.4 INSURANCE. Lessor shall maintain adequate Products liability,
general public liability, and property damage insurance against any claim or
claims which might or could arise regarding Products rented by Participating
Members from it under the Agreement. When requested by Tech Management, an
insurance certificate indicating the foregoing coverage, issued by an insurance
company licensed to do business in the relevant state or states and signed by
an authorized agent, shall be furnished to Premier. Lessor shall provide Tech
Management with at least thirty (30) days prior written notice of any
cancellation or material modification of such insurance.

13.0 TERMINATION.

         13.1 TERMINATION FOR BREACH. In the event of breach of any provision of
this Agreement, the non-breaching party shall notify the breaching party in
writing of the specific nature of the breach and shall request that it be cured.
If the breaching party does not cure the breach within thirty (30) days of such
notice, the non-breaching party may immediately terminate this Agreement on
written notice to the breaching party, and such termination shall not preclude
the non-breaching party from pursuing any and all remedies available to it at
law or in equity.

         13.2 ORDERS PLACED PRIOR TO TERMINATION. Lessor shall fulfill, in
accordance with the terms of this Agreement, all orders for Products submitted
by Participating Members and received by Lessor prior to termination or
expiration of this Agreement.

         13.3 TERMINATION WITHOUT CAUSE. Either party may terminate this
Agreement at any time without cause or penalty upon providing the other party
with ninety (90) days' advance written notice.

         13.4 SURVIVAL. The following paragraphs of this Agreement shall survive
expiration or termination of this Agreement: (i) the payment of Administrative
Fees pursuant to Article 10.0 including, but not limited to, fees relating to
Products ordered prior to the effective date of expiration or termination and
delivered after expiration or termination; (ii) the audit undertakings set forth
in Section 15.12; (iii) the representations, warranties and covenants set forth
in Section 12.2; (iv) the indemnification undertaking contained in Section 12.1;
(v) the designation of Participating Members as third party beneficiaries
pursuant to Section 15.7; (vi) the undertaking to fill orders submitted to and
received by Lessor prior to the date of expiration or termination set forth in
Section 13.2; (vii) the confidentiality undertakings contained in Article 14;
(viii) the rights and limitations on assignment contained in Sections 15.4 and
15.10; (ix) the governing law provisions contained in Section 15.1; (x)
reasonable attorney's fees provided for in Section 15.9; (xi) compliance with
laws and regulations provided for in Article 11.0; and (xii) the rights of
Participating Members under Section 6.8 relating to the rejection of Products
which were ordered prior to the effective date of expiration or termination.

14.0 CONFIDENTIALITY.

         14.1 CONFIDENTIAL INFORMATION. For the purposes of this Agreement,
confidential information ("Confidential Information") shall mean all
proprietary, secret or confidential information or data relating

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to Tech Management, Participating Members, or Renter and their respective
operations, employees, services, patients or customers.

         14.2 PROTECTION OF CONFIDENTIAL INFORMATION. Lessor and Tech Management
acknowledge that Lessor, Tech Management, or Participating Members may disclose
Confidential Information to each other in connection with this Agreement. If
Lessor or Tech Management receives Confidential Information, it shall: (a)
maintain the Confidential Information in strict confidence; (b) use at least the
same degree of care in maintaining the secrecy of the Confidential Information
as it uses in maintaining the secrecy of its own proprietary, secret, or
confidential information, but in no event less than a reasonable degree of care;
(c) use Confidential Information only to fulfill its obligations under this
Agreement; and (d) return or destroy all documents, copies, notes, or other
materials containing any portion of the Confidential Information upon request by
Tech Management or Lessor. Notwithstanding the foregoing, Tech Management shall
have the right to disclose Confidential Information to outside consultants as
necessary for Tech Management to provide support services for Participating
Members in connection with this Agreement.

         14.3 AGREEMENT CONFIDENTIALITY. Neither Tech Management nor Lessor
shall disclose the terms of this Agreement to any other person or entity outside
its organization and affiliates other than to a Participating Member or as
required by law. For purposes of this provision, an affiliate is an entity in
which Tech Management or Renter, as appropriate, maintains an ownership position
in or a contractual relationship with, and the disclosure is required so that
the disclosing party may fulfill its obligations hereunder. Neither party shall
make any public announcement concerning the existence of this Agreement or its
terms unless such party receives prior written approval by the other party.

         14.4 LIMITATION ON OBLIGATION. Lessor and Tech Management shall have no
obligation concerning any portion of the Confidential Information which: (a) was
known to it before receipt, directly or indirectly, from the disclosing party;
(b) is lawfully obtained, directly or indirectly, by it from a non-party which
was under no obligation of confidentiality; (c) is or becomes publicly available
other than as a result of an act or failure to act by the receiving party; (d)
is required to be disclosed by the receiving party by applicable law or legal
process; or (e) is developed by the receiving party independent of the
Confidential Information disclosed by the disclosing party. The receiving party
shall not disclose any portion of the Confidential Information to any person
except those of its employees and affiliates having a need to know such portion
to accomplish the purposes contemplated by this Agreement.

15.0 MISCELLANEOUS.

         15.1 GOVERNING LAW AND VENUE. This Agreement is being delivered and
executed in the State of Illinois. In any action brought by or against Tech
Management, the validity, construction and enforcement of this Agreement shall
be governed in all respects by the laws of the State of Illinois, and venue
shall be proper only in a court of competent jurisdiction located in the State
of Illinois in Cook County. In the event of any dispute arising out of this
Agreement, whether at law or in equity, brought by or against a Premier
Participating Member, venue shall be proper only in a court of competent
jurisdiction located in the county and state in which such member is located.
The parties agree to be subject to personal jurisdiction in and consent to
service of process issued by a court in which venue is proper as defined in this
Section 15.1.

         15.2 MODIFICATION AND WAIVER. No modification of this Agreement shall
be deemed effective unless in writing and signed by each of the parties hereto.
Any waiver of a breach of any provision(s) of this Agreement shall not be deemed
effective unless in writing and signed by the party against whom enforcement of
the waiver is sought.

         15.3 HEADINGS. The descriptive headings of the sections of this
Agreement are inserted for convenience only and shall not control or affect the
meaning or construction of any provision hereof.

         15.4 ASSIGNMENT. Tech Management shall have the right, without Lessor's
consent, to assign Tech Management's rights, title and interest under this
Agreement to any entity owned or controlled by Premier, Premier Purchasing
Partners, L.P. ("Purchasing Partners") and/or Tech Management or under common
ownership or control with Premier, Purchasing Partners and/or Tech Management.
Except as set forth in the foregoing sentence, neither party may assign,
subcontract, delegate or otherwise transfer this Agreement or any of its rights
or obligations hereunder, nor may it contract with third parties to perform any
of its obligations hereunder except as contemplated in this Agreement, without
the other party's prior written consent.

         15.5 SEVERABILITY. If any part of this Agreement shall be determined to
be invalid, illegal or unenforceable by any valid Act of Congress or act of any
legislature or by any regulation duly promulgated by the United States or a
state acting in accordance with the law, or declared null and void by any court
of competent jurisdiction, then such part shall be reformed, if possible, to
conform to the law and, in any event, the remaining parts of this Agreement
shall be fully effective and operative insofar as reasonably possible.

         15.6 NOTICES. Any notice required to be given pursuant to the terms and
provisions hereof shall be in writing, postage and delivery charges pre-paid,
and shall be sent by telecopier, hand delivery, overnight mail service,
first-class mail or certified mail, return receipt requested, to Tech Management
or Renter at the addresses and/or facsimile numbers set forth on the Cover
Sheet. Any party may change the address to which notices are to be sent by
notice given in accordance with the provisions of this section. Notices
hereunder shall be deemed to have been given, and shall be effective upon actual
receipt by the other party, or, if mailed, upon the earlier of the fifth (5th)
day after mailing or actual receipt by the other party. Lessor shall provide a
copy of any notice to Tech Management provided under this Section to the Premier
Legal Department at the following address:

                          Premier Legal Department

                          12225 El Camino Real

                          San Diego, CA 92130-2099

                          Tel. No.: (619) 481-2727

                          Fax No.: (619) 481-0538

                          Attn.: General Counsel

         15.7 ENFORCEABILITY. The parties hereto acknowledge and agree that (i)
this Agreement is entered into by Tech Management for the express, intended
benefit of Participating Members, (ii) each of the Participating Members shall
be and constitute an intended third-party beneficiary of the representations,
warranties, covenants and agreements of the Lessor contained herein, and (iii)
each of the Participating Members shall be entitled to enforce the terms and
provisions of this Agreement to the same extent as Tech Management.

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         15.8 INDEPENDENT CONTRACTORS. The parties' relationship hereunder is
that of independent contractors. This Agreement does not create any employment,
agency, franchise, joint venture, partnership or other similar legal
relationship between Tech Management and Lessor. Neither party has the authority
to bind or act on behalf of the other party except as otherwise specifically
stated herein.

         15.9 ATTORNEYS' FEES. Should any party engage an attorney for the
purpose of enforcing this Agreement or any judgment based hereon on any court,
including bankruptcy court, courts of appeal or arbitration proceedings, the
prevailing party shall be entitled to receive its reasonable attorneys' fees and
costs in addition to any other relief granted.

         15.10 BINDING EFFECT. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
permitted assigns.

         15.11 FORCE MAJEURE. The obligations of either party to perform under
this Agreement will be excused during each period of delay caused by acts of God
or by shortages of power or materials or government orders which are beyond the
reasonable control of the party obligated to perform ("Force Majeure Event"). In
the event that either party ceases to perform its obligations under this
Agreement due to the occurrence of a Force Majeure Event, such party shall: (1)
immediately notify the other party in writing of such Force Majeure Event and
its expected duration; (2) take all reasonable steps to recommence performance
of its obligations under this Agreement as soon as possible. In the event that
any Force Majeure Event delays a party's performance for more than thirty (30)
days following notice by such party pursuant to this Agreement, the other party
may terminate this agreement immediately upon written notice to such party.

         15.12 AUDIT OF COSTS. Lessor shall permit Tech Management or its agent
to conduct periodic audits of records relating to Lessor's performance under
this Agreement including without limitation relevant orders, invoices, volume
reports and administrative fees. The audits shall be conducted upon reasonable
advance notice during regular business hours at Lessor's principal office and in
such a manner as not to unduly interfere with Lessor's operations.

MINORITY AND FEMALE-OWNED BUSINESSES. Lessor represents and warrants that it is
an "equal opportunity employer", shall also use its best efforts to support Tech
Management's Minority and Female-Owned Businesses Policy as set forth in Exhibit
F hereto.

         15.14 ENTIRE AGREEMENT. This Agreement, including the Cover Sheet, the
Additional Terms and Conditions (if any) and all Exhibits hereto, constitutes
the entire understanding and agreement between Lessor and Tech Management
concerning the subject matter hereof, and supersede all prior negotiations,
agreements and understandings between Lessor and Tech Management, whether oral
or in writing, concerning the subject matter hereof, including, but not limited
to, all prior agreements between Lessor and either Purchasing Partners, AmHS
Purchasing Partners, L.P., AmHS, Inc., Premier Health Alliance, Inc., or
SunHealth Alliance, Inc., whether or not assigned to Tech Management, Purchasing
Partners or Premier.

         15.15 LABOR AND EMPLOYMENT LAWS. Lessor represents and warrants that it
complies with applicable labor and employment laws and prohibits any form of
child labor or other exploitation of children in the manufacturing and delivery
of Products, consistent with provisions of the International Labor
Organization's Minimum Age Convention of 1973. A child is any person who is less
than fourteen (14) years of age or who is younger than the compulsory age to be
in school in the country in which Lessor's business is being conducted, if that
age is higher than fourteen (14).

         15.16 NO ADDITIONAL OBLIGATIONS IMPOSED BY LESSOR. Except as expressly
set forth herein, Lessor shall not impose any obligations on Tech Management
and/or Participating Members as a condition to receiving any of the benefits set
forth in this Agreement.

         15.17 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same agreement.

         15.18 DATE/PAYMENT EXCHANGE. Lessor hereby acknowledges that Tech
Management is currently developing technology and processes which may enable
Participating Members and Lessor to more efficiently exchange information and
payments (e.g., through use of the Internet). Lessor agrees to cooperate with
Tech Management's efforts in this regard and shall use best efforts to implement
any data/payment exchange system reasonably adopted by Tech Management for group
purchasing activities.

         15.19 TECHNOLOGICAL BREAKTHROUGHS. Tech Management believes an
essential element of advancing the core objectives and mission of Premier is to
encourage the development of health care technology which significantly improves
the quality, process and/or outcome of care. In support of this belief, the
Parties acknowledge that certain Products which incorporate breakthrough
technologies ("Breakthrough Products") have the potential to significantly
improve safety to patients or hospital staff, significantly improve non-clinical
operational efficiency, or deliver dramatic process of care cost savings or
improved clinical outcomes when compared to the level of safety, operational
efficiency, process of care and/or outcomes delivered through use of the
Products. Tech Management therefore reserves the right to enter into agreements
with the supplier(s) of such Breakthrough Products in order to make such
Products available to Participating Members. Renter hereby agrees that the rent
of such Breakthrough Products by Participating Members shall not negatively
impact such members' access to any favorable terms and conditions offered under
this Agreement.

         15.20 YEAR 2000 COMPLIANCE. Lessor warrants that to the best of its
knowledge based upon the information supplied by the applicable manufacturer any
software and hardware included in the Products and any software and hardware
used in information systems by Lessor to process transactions related to
providing the Products hereunder, including without limitation, sales order
processing, sales order acknowledgment processing, advanced shipping notice
processing, invoicing, purchase order processing, purchase order
acknowledgments, accounts receivable and accounts payable processes, and sales
and compliance reporting processes, shall operate properly prior to, during and
after the year 2000 and shall not cause any business interruptions or response
time delays (i.e., such software and hardware is "Year 2000 Compliant"). In this
regard, Lessor agrees that such software and hardware shall contain, at a
minimum:

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     a. date formats that have century recognition;

     b. calculations that accommodate same-century and multi-century formulas
        and date values

     c. date interface values that reflect the century; and

     d. calculations that accommodate the occurrence of leap years.

Upon Tech Management's request, Lessor agrees to provide Tech Management with
documentation demonstrating that the Products and Lessor's transaction
processing systems are Year 2000 Compliant. If at any time during the term
hereof it is reasonably determined by Tech Management that any Products and/or
Lessor's transaction processing systems are not Year 2000 Compliant, Lessor
agrees that the Participating Member may return the Product to Lessor. Lessor
will insure that no Year 2000 non-compliant equipment will be rented to
members. In the event that one does get rented it will be replaced
immediately. Lessor shall also be responsible for, and shall defend, indemnify
and hold Tech Management and Participating Members harmless from and against,
any and all losses, liabilities, costs or claims, including without limitation,
loss of data, lost profits and attorneys fees, which arise as a result of
Lessor's transaction processing systems not being Year 2000 Compliant.

In addition, Lessor agrees that no equipment that is Y2K non-compliant will be
delivered to any Participating Member after August 30, 1999, without the
informed written consent of the Participating Member.

15.21 CONTROLLING DOCUMENT. In the event of any conflict between this
Agreement and any document, instrument or agreement prepared by Lessor
(including without limitation Lessor's rent orders, invoices and warranties),
the terms of this Agreement shall control.

[ ] END OF STANDARD TERMS AND CONDITIONS [ ]

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(C)1998 BY PREMIER TECHNOLOGY MANAGEMENT, L.L.C. THIS DOCUMENT MAY NOT BE
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