Document:

Exhibit 10.1

 

SECOND LIMITED WAIVER AND
SECOND AMENDMENT

TO AMENDED AND RESTATED

CREDIT AGREEMENT

 

THIS
SECOND LIMITED WAIVER AND SECOND AMENDMENT, dated as of March 30, 2005 (the “Waiver”), to
that certain Amended and Restated Credit
Agreement, dated as of September 3, 2003, is made among MQ ASSOCIATES, INC., a
Delaware corporation (“Holdings”), MEDQUEST, INC., a Delaware
corporation (the “Borrower”), the Lenders (as defined in the Credit
Agreement defined below) identified on the signature pages hereto, and WACHOVIA
BANK, NATIONAL ASSOCIATION (“Wachovia”), as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).

RECITALS

 

A.            Holdings, the Borrower, the Lenders, Chase Lincoln First
Commercial Corporation, as Syndication Agent, Wachovia and General Electric
Capital Corporation, as Co-Documentation Agents, and Wachovia as Administrative
Agent, are parties to an Amended and Restated Credit Agreement, dated as of
September 3, 2003 (as amended, supplemented, restated or otherwise modified
from time to time, the “Credit Agreement”), providing for the
availability of certain credit facilities to the Borrower upon the terms and
conditions set forth therein. 
Capitalized terms used herein without definition shall have the meanings
given to them in the Credit Agreement.

B.            Pursuant to that certain Limited Waiver and Agreement,
dated as of February 14, 2005 (the “First Waiver”), among the parties
hereto, the Required Lenders (i) temporarily waived the Specified Defaults (as
defined in the First Waiver), (ii) permanently waived the Section 6.2(c)
Default (as defined in the First Waiver) and (iii) extended the deadline for
delivery of the 2005 Projections (as defined in the First Waiver).

C.            Holdings and the Borrower have advised the Administrative
Agent and the Lenders that the Specified Defaults (as defined in the First
Waiver) are continuing and that the Borrower is not able to deliver the 2005
Projections (as defined in the First Waiver) to the Administrative Agent and
the Lenders by March 31, 2005.

D.            Holdings and the Borrower have requested that the
Administrative Agent and the Lenders agree (i) to temporarily waive the Second
Waiver Specified Defaults (as defined below) until May 15, 2005 and (ii) to extend the deadline for delivery of the 2005 Projections.

E.             The
Administrative Agent and the Lenders party to this Waiver are agreeable to the
request of Holdings and the Borrower under the circumstances referred to below
and on the terms and conditions set forth below.

 

 

 

STATEMENT
OF AGREEMENT

 

NOW,
THEREFORE, in
consideration of the foregoing and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

1.                             Amendment to
Section 10.5.  (a) Section 10.5(a) of
the Credit Agreement is hereby amended by deleting the words “including the
reasonable fees and disbursements of counsel to each Agent” and inserting in
lieu thereof “including but not limited to the reasonable fees and
disbursements of counsel for the Administrative Agent, any other counsel that
any of the Agents shall retain and any other third-party appraisers,
consultants, financial consultants and auditors advising the Administrative
Agent or retained by counsel for the Administrative Agent,”; and

                (b) Section 10.5(b) of the Credit Agreement is hereby
amended by inserting the following phrase at the end thereof “and any
third-party appraisers, consultants, financial consultants and auditors
advising the Administrative Agent or retained by counsel for the Administrative
Agent”.

2.                             Waivers.  In reliance upon the representations,
warranties and agreements made by Holdings and the Borrower in this Waiver,
each of the Lenders and the Administrative Agent hereby:

(a)           temporarily (i) waives the (I)
Specified Defaults and (II) one or more Defaults and/or Events of Default that
may have occurred and may be continuing, or that may occur, with respect to (w)
the covenant to deliver a copy of the audited consolidated balance sheet of the
Borrower and its consolidated Subsidiaries as at the end of the fiscal year
ended December 31, 2004, and the related audited consolidated statements of
income and cash flows for such fiscal year, within 90 days after the end of
such fiscal year, as required by Section 6.1(a) of the Credit Agreement, (x)
the covenants contained in Section 7.1 of the Credit Agreement as of and for
the period ended March 31, 2005, (y) representations and warranties made or
deemed made by Holdings and the Borrower concerning the financial statements
and other information previously provided by Holdings and the Borrower to the
Administrative Agent and the Lender relating to such period and/or (z) the
failure to give notice of any such Default and/or Event of Default listed in
clauses (w) — (y) or any representation or warranty made or deemed made by
Holdings and the Borrower that no such Default or Event of Default has occurred
((I) and (II), collectively, the “Second Waiver Specified Defaults”) and
(ii) agrees that, for the purposes of Section 5(c) hereof and, solely in
connection with any borrowing of Revolving Loans or Swingline Loans or issuance
of Letters of Credit as permitted under clause (2) below, for purposes of
Section 5.2(a) of the Credit Agreement, any effect that the Accounting Matter
(as defined to in the First Waiver) has had or may have on any financial
statements or other information of Holdings, the Borrower and their
Subsidiaries previously delivered to the Administrative Agent and the Lenders
or any related representations and warranties made or deemed made by any Loan
Party in or pursuant to the Loan Documents shall be disregarded; provided
that (1) such waiver and agreement is effective only until, and shall expire
automatically (without any further action by or notice to or from the Administrative
Agent or any Lender) upon, the earliest to occur of (A) May 15, 2005 and (B)
delivery by the Borrower to 

 

2

 

the  Administrative Agent and the Lenders of
audited financial statements for the year ending December 31, 2004 as required
by Section 6.1(a) of the Credit Agreement together with the certificates and
other information as required by Sections 6.2(a) and 6.2(b) of the Credit
Agreement  and (C) the occurrence of any
Default or Event of Default other than the Second Waiver Specified Defaults
(the “Waiver Period”), and (2) as a continuing condition to the
effectiveness of such waiver and agreement, the Borrower agrees that the
aggregate amount of all borrowings of Revolving Loans and/or Swingline Loans
(excluding any Revolving Loans to the extent the proceeds thereof are used to
refund outstanding Swingline Loans) made, together with the aggregate amount of
all Letters of Credit issued, during the period from the Effective Date (as
defined below) until the expiration of the Waiver Period, will not exceed the
aggregate amount at any time outstanding of the Revolving Loans and/or
Swingline Loans outstanding, together with the aggregate amount of all Letters
of Credit issued, on March 23, 2005 plus $5,000,000; provided, further,
that the limited duration of this Waiver shall not be taken into consideration
when determining whether, at any time during the Waiver Period, a Default has
occurred under the Credit Agreement; and

(b)           agrees that the
Borrower shall not be required to deliver the 2005 Projections to the
Administrative Agent and the Lenders until the earlier of (i) May 15, 2005 and
(ii) delivery by the Borrower to the Administrative Agent and the Lenders of
audited financial statements for the year ending December 31, 2004 as required
by Section 6.1(a) of the Credit Agreement.

3.                             Excess Cash.  If as of the close of any Business Day during
the Waiver Period, the aggregate cash on-hand of the Borrower and all other
Group Members exceeds $8.5 million, the
Borrower shall promptly pay to the Administrative Agent in reduction of
outstanding Revolving Loans all such amounts in excess of $8.5 million; provided,
however, that such repayments shall not permanently reduce the Revolving
Commitment or the aggregate amount of Revolving Loans and/or Swingline Loans,
together with the aggregate amount of all Letters of Credit issued, permitted
to be outstanding pursuant to the terms of Section 2(a) of this Waiver; provided,
further, that the Administrative Agent and the Borrower shall use
commercially reasonable efforts to minimize any loss or expense payable by the
Borrower under Section 2.20 of the Credit Agreement as a result of the making
of a prepayment of Eurodollar Loans on a day that is not the last day of an
Interest Period with respect thereto (it being understood and
agreed that such efforts may include the deposit by the Borrower of
amounts required to be repaid pursuant to this Section 3 into a segregated
account as determined by the Administrative Agent and applied to repay
Eurodollar Loans as and when the applicable Interest Periods expire).

4.                             Limitations.  Notwithstanding anything in the Credit
Agreement to the contrary, during the Waiver Period, the Borrower:

(a)           shall not, with respect to any
Eurodollar Loan, permit the Interest Period to end beyond one month after the
borrowing or conversion date thereof;

 

3

 

(b)           shall not permit to
be extended any Incremental Term Loans;

(c)           agrees that clauses
(x) and (y) of the first proviso to Section 2.11(d) of the Credit Agreement
shall not apply ;

(d)           shall not permit any
Restricted Payment to be made other than (i) dividends to Holdings to permit
Holdings to pay corporate overhead expenses incurred in the ordinary course of
business not to exceed $25,000 in the aggregate and pay any taxes that are due
and payable by Holdings and the Borrower as part of a consolidated group and
(ii) Restricted Payments otherwise permitted under Sections 7.6(a) and (d) of
the Credit Agreement; and

(e)           shall not permit to
be made any Investments of the type permitted under Section 7.7(g) of the
Credit Agreement other than such Investments listed on Schedule 4(e) hereto
(which Investments shall be permitted under Section 7.7(g) regardless of
whether they comply with the requirements set forth in clauses (iii) and (viii)
of such Section 7.7(g)).

5.                             Representations
and Warranties.  In order to induce
the Administrative Agent and the Lenders to enter into this Waiver, each of
Holdings and the Borrower hereby represents and warrants to the Lenders as of
the date hereof that:

(a)           this Waiver has been
duly executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law);

(b)           after giving effect
to this Waiver, no Default or Event of Default has occurred and is continuing;
and

(c)           after giving effect
to this Waiver, each of the representations and warranties made by any Loan
Party in or pursuant to the Loan Documents is true and correct in all material
respects on and as of the date hereof as if made on and as of the date hereof,
except to the extent such representations and warranties expressly relate to an
earlier date (in which case such representations and warranties shall be true
and correct in all material respects as of such earlier date).

6.                             Conditions
of Effectiveness.  This Waiver shall
become effective as of the date (the “Effective Date”) that (i) the
Administrative Agent shall have received executed counterparts hereof from each
of Holdings, the Borrower and the Required Lenders and an acknowledgment and
consent hereto from each of the Subsidiary Guarantors in form and substance
reasonably satisfactory to the Administrative Agent, (ii) the Administrative
Agent shall have received the expense deposit in the amount of $25,000 with
respect to the engagement on behalf of the Administrative Agent of FTI
Consulting, Inc., (iii) the Administrative Agent shall have received a fee
payable to the Administrative Agent for the account of each Lender pro rata in accordance with each Lender’s Tranche B Term Percentage,
Incremental Term Percentage and Revolving Commitment, as the case may be, in
the

 

4

 

aggregate amount
of $175,000 and (iv) the Borrower shall have paid to the Administrative Agent
in reduction of the Revolving Loans all amounts of cash on-hand of the Borrower
and all other Group Members in excess of $8.5 million (which payment shall be
subject to the provisos set forth in Section 3 of this Waiver).

7.                             Effect of Waiver.  Each of Holdings and the Borrower understands
that the waivers set forth in Section 2 hereof is temporary in effect and that
upon the expiration of the Waiver Period, without any further action by or
notice to or from the Administrative Agent or any Lender, the Administrative
Agent and the Lenders shall have all of the rights and remedies provided to
them under the Credit Agreement, the other Loan Documents, applicable law or otherwise
as though no waivers had been granted hereunder.  Except as expressly set forth herein, this
Waiver shall not, by implication or otherwise, limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the Lenders, the
Administrative Agent, the Borrower, Holdings or any other Loan Party under the
Credit Agreement or any other Loan Document, and shall not alter, modify, amend
or in any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Credit Agreement or any other Loan Document, all of
which are ratified and affirmed in all respects and shall continue in full
force and effect.  Nothing herein shall
be deemed to entitle the Borrower, Holdings or any other Loan Party to a
consent to, or a waiver, amendment, modification or other change of, any of the
terms, conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document in similar or different
circumstances.  This Waiver shall
constitute a “Loan Document” for all purposes of the Credit Agreement and the
other Loan Documents.

8.                             Releases.  For purposes of this Section, the following
terms shall have the following definitions:

“Related Parties” shall mean, 
with respect to any released party, such party’s parents, subsidiaries,
affiliates, successors, assigns, predecessors, officers, directors, employees,
agents, representatives, attorneys, accountants and shareholders, if any.

“Claims” shall mean  any
and all claims, losses, debts, liabilities, demands, obligations, promises,
acts, omissions, agreements, costs, expenses, damages, injuries, suits,
actions, causes of action, including without limitation, any and all rights of
setoff, recoupment or counterclaim of any kind or nature whatsoever, in law or
in equity, known or unknown, suspected or unsuspected, contingent or fixed.

Excluding only the continuing obligations of the Lenders and the
Administrative Agent from and after the Effective Date under the express terms
of the Credit Agreement, the Loan Documents and this Waiver, Holdings, the
Borrower and each Guarantor

 

5

 

hereby release, acquit
and forever discharge the Lenders and the Agents, and each of them, and their
respective Related Parties, of and from any and all Claims arising out of,
related or in any way connected with any action or failure to act, prior to the
Effective Date, in response to or otherwise in connection with the events or
circumstances arising under or otherwise related to the Credit Agreement, the
Loan Documents or any Defaults occurring under the Credit Agreement or the Loan
Documents.

9.                             Governing Law.  THIS WAIVER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

10.                           Severability.  Any provision of this Waiver that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

11.                           Successors and
Assigns.  This Waiver shall be
binding upon, inure to the benefit of and be enforceable by the respective
successors and assigns of the parties hereto.

12.                           Construction.  The headings of the various sections and
subsections of this Waiver have been inserted for convenience only and shall
not in any way affect the meaning or construction of any of the provisions
hereof.

13.                           Counterparts.  This Waiver may be executed by one or more of
the parties to this Waiver on any number of separate counterparts, and all of
said counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed signature page of this Waiver by facsimile
transmission shall be effective as delivery of a manually executed counterpart
hereof.

 

6

 

IN WITNESS WHEREOF, the
parties hereto have caused this Waiver to be executed by their duly authorized
officers as of the date first above written.

 

	
   

  	
  MEDQUEST, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ DONALD C. TOMASSO

  	
   

  
	
   

  	
   

  	
  Name:  Donald
  Tomasso

  
	
   

  	
   

  	
  Title: 
  Interim Chief Executive Officer

  

 

 

	
   

  	
  MQ ASSOCIATES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ DONALD C. TOMASSO

  	
   

  
	
   

  	
   

  	
  Name:  Donald
  Tomasso

  
	
   

  	
   

  	
  Title:    Interim Chief Executive Officer

  

 

 

 

	
   

  	
  WACHOVIA BANK, NATIONAL

  
	
   

  	
  ASSOCIATION, as Administrative Agent 

  and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ LEANNE S. PHILLIPS

  	
   

  
	
   

  	
   

  	
  Name: Leanne S. Phillips

  
	
   

  	
   

  	
  Title: Director

  

 

 

 

	
   

  	
  CHASE LINCOLN FIRST COMMERCIAL 

  
	
   

  	
  CORPORATION, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAWN LEE LUM

  	
   

  
	
   

  	
   

  	
  Name: Dawn Lee Lum

  
	
   

  	
   

  	
  Title: Director

  

 

 

 

	
   

  	
  GENERAL ELECTRIC CAPITAL

  
	
   

  	
  CORPORATION, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ BRENT A. SHEPHERD

  	
   

  
	
   

  	
   

  	
  Name: Brent A. Shepherd

  
	
   

  	
   

  	
  Title: Duly Authorized Signatory

  

 

 

 

	
   

  	
  UBS AG, STAMFORD BRANCH,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ EDWARD CRIPPS

  	
   

  
	
   

  	
   

  	
  Name: Edward Cripps

  
	
   

  	
   

  	
  Title: Director Banking Products Services, US

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ RICHARD L. TAVROW

  	
   

  
	
   

  	
   

  	
  Name:  Richard
  L. Tavrow

  
	
   

  	
   

  	
  Title: 
  Director Banking Products Services, US

  
	
   

  	
   

  	
   

  

 

 

 

	
   

  	
  MADISON PARK, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ ANDREW MARSHAK

  	
   

  
	
   

  	
   

  	
  Name: Andrew Marshak

  
	
   

  	
   

  	
  Title:

  

 

 

 

	
   

  	
  CSAM FUNDING III, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ ANDREW MARSHAK

  	
   

  
	
   

  	
   

  	
  Name: Andrew Marshak

  
	
   

  	
   

  	
  Title:

  

 

 

 

	
   

  	
  FOOTHILL INCOME TRUST L.P.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  FITGP, LLC, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ DENNIS R. ASCHER

  	
   

  
	
   

  	
   

  	
  Name: Dennis R. Ascher

  
	
   

  	
   

  	
  Title: 
  Managing Member

  

 

 

 

	
   

  	
  BLACK DIAMOND INTERNATIONAL

  
	
   

  	
  FUNDING, LTD, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ PAUL COPE

  	
   

  
	
   

  	
   

  	
  Name: Paul Cope

  
	
   

  	
   

  	
  Title: Director

  

 

 

 

	
   

  	
  INDOSUEZ CAPITAL FUNDING VI 

  
	
   

  	
  LIMITED, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Lyon Capital Management, LLC, as

  
	
   

  	
   

  	
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ ALEXANDER B. KENNA

  	
   

  
	
   

  	
   

  	
  Name: Alexander B. Kenna

  
	
   

  	
   

  	
  Title: Portfolio Manager

  

 

 

 

	
   

  	
  MOUNTAIN CAPITAL CLO 1 LTD., 

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ CHRIS SIDDONS

  	
   

  
	
   

  	
   

  	
  Name: Chris Siddons

  
	
   

  	
   

  	
  Title: Director

  

 

 

 

	
   

  	
  MOUNTAIN CAPITAL CLO 11 LTD., 

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ CHRIS SIDDONS

  	
   

  
	
   

  	
   

  	
  Name: Chris Siddons

  
	
   

  	
   

  	
  Title: Director

  

 

 

 

	
   

  	
  TRS/LLC, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ EDWARD SCHAFFER

  	
   

  
	
   

  	
   

  	
  Name: Edward Schaffer

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

 

ACKNOWLEDGMENT AND CONSENT

 

Pursuant to Section 4 of
the Second Waiver and Second Amendment to Amended and Restated Credit
Agreement, dated as of March     , 2005 among MQ
Associates, Inc., a Delaware corporation (“Holdings”), MedQuest, Inc., a
Delaware corporation (the “Borrower”), the Lenders identified on the
signature pages thereto, and Wachovia Bank, National Association (“Wachovia”),
as administrative agent for the Lenders (the “Waiver”), to which this
acknowledgment is attached, each of the undersigned hereby acknowledges receipt
of a copy of and consents to the execution and delivery by Holdings and the
Borrower of the Waiver.  Each of the
undersigned further confirms and agrees that, after giving effect to the
Waiver, each Loan Document to which it is a party shall continue in full force
and effect in accordance with its terms. Capitalized terms used herein without
definition shall have the meanings given to them in the Amended and Restated
Credit Agreement dated September 3, 2003 among Holdings, the Borrower, the
Lenders, JPMorgan Chase Bank, as Syndication Agent, Wachovia and General
Electric Capital Corporation, as Co-Documentation Agents, and Wachovia,
as Administrative Agent.

[Remainder of this page intentionally left blank.]

 

Acknowledgement to 

Second Waiver and Second Amendment

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Acknowledgment and Consent to be executed by
their duly authorized officers as of the date first above written.

	
  ANDERSON DIAGNOSTIC
  IMAGING, INC.

  ASHEVILLE OPEN MRI,
  INC.

  BIOIMAGING AT
  CHARLOTTE, INC.

  BIOIMAGING OF COOL
  SPRINGS, INC.

  BIOIMAGING AT HARDING,
  INC.

  CABARRUS DIAGNOSTIC
  IMAGING, INC.

  CAPE FEAR DIAGNOSTIC
  IMAGING, INC.

  CAROLINA IMAGING, INC.
  OF FAYETTEVILLE

  CAROLINAS DIAGNOSTIC
  IMAGING, INC.

  CHAPEL HILL DIAGNOSTIC
  IMAGING, INC.

  CHATTANOOGA DIAGNOSTIC
  IMAGING, INC.

  DOTHAN DIAGNOSTIC
  IMAGING, INC.

  FLORIDA DIAGNOSTIC
  IMAGING CENTER, INC.

  GROVE DIAGNOSTIC
  IMAGING CENTER, INC.

  ILLINOIS DIAGNOSTIC
  IMAGING, INC.

  IMAGING SERVICES OF
  ALABAMA, INC.

  KANSAS DIAGNOSTIC
  IMAGING, INC.

  LEXINGTON OPEN MRI,
  INC.

  MECKLENBURG DIAGNOSTIC
  IMAGING, INC.

  MEDQUEST ASSOCIATES,
  INC.

  MISSOURI IMAGING, INC.

  On behalf of each of
  the entities listed above:

   

   

  	
  MOBILE OPEN MRI, INC.

  MRI & IMAGING OF WISCONSIN, INC.

  NORTHEAST COLUMBIA DIAGNOSTIC IMAGING,

  INC.

  OCCUPATIONAL SOLUTIONS, INC.

  OPEN MRI OF GEORGIA, INC.

  OPEN MRI & IMAGING OF GEORGIA, INC.

  OPEN MRI & IMAGING OF RICHMOND, INC.

  PALMETTO IMAGING, INC.

  PHOENIX DIAGNOSTIC IMAGING, INC.

  PIEDMONT IMAGING, INC. (FORSYTH)

  PIEDMONT IMAGING, INC. (SPARTANBURG)

  SOUTH CAROLINA DIAGNOSTIC IMAGING, INC.

  SUN VIEW HOLDINGS, INC.

  TEXAS IMAGING SERVICES OF EL PASO, INC.

  TRIAD IMAGING, INC.

  TYSON’S CORNER DIAGNOSTIC IMAGING, INC.

  VIENNA DIAGNOSTIC IMAGING, INC.

  VIRGINIA DIAGNOSTIC IMAGING, INC.

  WILLIAM S. WITT, INC.

  WISCONSIN DIAGNOSTIC IMAGING, INC.

  On behalf of each of the entities listed above:

   

   

   

  
	
  By:

  	
  /s/ DONALD C. TOMASSO

  	
   

  	
  By:

  	
  /s/ DONALD C. TOMASSO

  	
   

  
	
   

  	
  Name:  Donald Tomasso

  	
   

  	
  Name:  Donald
  Tomasso

  
	
   

  	
  Title:  Interim Chief Executive Officer

  	
   

  	
  Title: 
  Interim Chief Executive Officer

  
						

 

 

 

	
  ATHENS MRI, LLC

  BIRMINGHAM DIAGNOSTIC IMAGING, LLC

  BRIDGETON MRI AND IMAGING CENTER, LLC

  BRUNSWICK DIAGNOSTIC IMAGING, LLC

  BUCKHEAD DIAGNOSTIC IMAGING, LLC

  CAPE FEAR MOBILE IMAGING, LLC

  CAPE IMAGING, L.L.C.

  CAROLINA MEDICAL IMAGING, LLC

  CLAYTON OPEN MRI, LLC

  COASTAL IMAGING, LLC

  CUMMING DIAGNOSTIC IMAGING, LLC

  DIAGNOSTIC IMAGING OF ATLANTA, LLC

  DIAGNOSTIC IMAGING OF GEORGIA, LLC

  DIAGNOSTIC IMAGING OF HIRAM, LLC

  DIAGNOSTIC IMAGING OF MARIETTA, LLC

  DULUTH DIAGNOSTIC IMAGING, LLC

  DULUTH CT CENTER, LLC

  DURHAM DIAGNOSTIC IMAGING, LLC

  EAST COOPER DIAGNOSTIC IMAGING, LLC

  FARMFIELD DIAGNOSTIC IMAGING, LLC

  FORT MILL DIAGNOSTIC IMAGING, LLC

  HAPEVILLE DIAGNOSTIC IMAGING, LLC

  IMAGING CENTER OF CENTRAL GEORGIA, LLC

  JACKSONVILLE DIAGNOSTIC IMAGING, LLC

  KIRKWOOD MRI AND IMAGING CENTER, LLC

  On behalf of each of
  the entities listed above:

   

   

  	
  MEDICAL SCHEDULING OF MISSOURI, LLC

  MIDTOWN DIAGNOSTIC IMAGING, LLC

  MONTGOMERY OPEN MRI, LLC

  OPEN MRI & IMAGING OF CONYERS, LLC

  OPEN MRI & IMAGING OF ALBANY, LLC

  OPEN MRI & IMAGING OF ATHENS, LLC

  OPEN MRI & IMAGING OF DOUGLASVILLE, LLC

  OPEN MRI OF ATLANTA, LLC

  OPEN MRI OF CENTRAL GEORGIA, LLC

  OPEN MRI & IMAGING OF DEKALB, LLC

  OPEN MRI & IMAGING OF NORTH FULTON, LLC

  OPEN MRI & IMAGING OF MACON, LLC

  OPEN MRI & IMAGING OF N.E. GEORGIA, LLC

  OPEN MRI AND IMAGING OF SNELLVILLE, LLC

  OPEN MRI OF SIMPSONVILLE, LLC

  OPEN MRI & IMAGING OF RICHMOND, LLC

  RICHMOND WEST END DIAGNOSTIC IMAGING, LLC

  SIMPSONVILLE OPEN MRI, LLC

  ST. PETERS MRI & IMAGING CENTER, LLC

  TOWN & COUNTRY OPEN MRI, LLC

  TRICOM DIAGNOSTIC IMAGING, LLC

  WEST ASHLEY DIAGNOSTIC IMAGING, LLC

  WEST PACES DIAGNOSTIC IMAGING, LLC

  WOODSTOCK DIAGNOSTIC IMAGING, LLC

  On behalf of each of the entities listed above:

   

   

   

  
	
  By:

  	
  /s/ DONALD C. TOMASSO

  	
   

  	
  By:

  	
  /s/ DONALD C. TOMASSO

  	
   

  
	
   

  	
  Name:  Donald Tomasso

  	
   

  	
  Name:  Donald
  Tomasso

  
	
   

  	
  Title:  Interim Manager

  	
   

  	
  Title: 
  Interim Manager

  
						

 

 

 

	
   

  	
  OPEN MRI OF MYRTLE BEACH, LLC

  
	
   

  	
  OPEN MRI & IMAGING OF FLORENCE, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Palmetto Imaging, Inc., as sole member of each 

  of the entities listed above

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DONALD C. TOMASSO

  	
   

  
	
   

  	
   

  	
  Name:  Donald
  Tomasso

  
	
   

  	
   

  	
  Title: 
  Interim Chief Executive OfficerExhibit 10.7

 

DISTRIBUTORSHIP
AGREEMENT

 

THIS AGREEMENT made and
entered into effective as of November 1, 2004, between ISCO PRECISION
OPTICS GmbH, Anna-Vandenhoeck-Ring 5, 37081 Gottingen, Germany, (hereinafter
referred to as “ISCO”) and BALLANTYNE OF OMAHA, INC., a Nebraska corporation,
4350 McKinley Road, Omaha, Nebraska 68112, (hereinafter referred to as “Ballantyne”),
pursuant to which Ballantyne will act as the exclusive distributor for the
products set forth in Annex “A”, attached hereto and by this reference
incorporated herein (Annex “A”) in the United States of America, Canada, and
Mexico, (hereinafter referred to as the “Territory”).

 

NOW, THEREFORE, the
parties hereto agree and covenant as follows:

 

1.                  GRANT OF DISTRIBUTORSHIP.

 

ISCO hereby grants
Ballantyne, subject to the provisions of this Agreement, the exclusive right to
sell, lease, or otherwise distribute and service the ISCO products identified
in the attached Annex “A”.  Ballantyne
agrees to go on exhibitions, to advertise in corresponding magazines and to
undertake all necessary steps to market the ISCO products, to secure business
and markets for the named products of ISCO in such Territory, to develop and
maintain a substantial volume of sales of said products, to use diligent
efforts to establish contacts with customers, promote ISCO’s products and
develop customer specifications consistent with those of ISCO’s products.  In addition, Ballantyne will seek new product
ideas or new application ideas and from time to time forward them as feedback
to ISCO.

 

Annex “A”, as attached at
the time of the signing of this Agreement, is for illustrative purposes only to
provide an initial list of products to be covered by this Agreement.  At the effective date of this Agreement, the
parties will initial and attach the ISCO Distributor Price List in effect on
that date.  Ballantyne shall not
distribute or sell in the Territory any products which are not produced by
ISCO.

 

2.                  PURCHASE OF UNITS.

 

Orders shall be placed by
Ballantyne by issuance of a purchase order and all necessary import
certifications and permits.

 

3.                  PRICE.

 

A.              The
prices applicable to products under this Agreement shall be those shown on the
ISCO Distributor Price List, Annex “B” attached.

 

B.                ISCO
will provide Ballantyne with a copy of any new ISCO Distributor Price List at
least ninety (90) days prior to its effective date.

 

1

 

C.                Any
price decreases reflected on any new ISCO Distributor Price List or otherwise
made available by ISCO to its distributors will immediately, upon their
effective date, apply to purchases under this Agreement.

 

4.                  DELIVERY.

 

A.              Ballantyne
will pay freight charges on all shipments made hereunder.  Shipments will be made by air freight with
shipments consolidated to obtain the cheapest possible rate, and for all
shipments the terms of delivery are “ex work Gottingen”.

 

B.                ISCO
shall make shipment of products ordered under this Agreement within thirty (30)
days following receipt of orders from Ballantyne.  If any orders cannot be delivered within this
time period, ISCO shall notify Ballantyne in writing of the reason for the
delay and state a date upon which shipment will be made.

 

C.                ISCO
shall provide Ballantyne with notice of any inventory stocks that are at low
levels so that Ballantyne can anticipate possible delays in shipment for those
products.

 

D.               All
products will be packed and packaged with adequate protection to withstand the
rigors of international air shipment and handling.  Risk of loss or damage in transit shall be
borne by Ballantyne’s transport insurance carrier.  Title to the products shall pass to
Ballantyne upon delivery to the carrier.

 

E.                 Ballantyne
will provide to ISCO on a monthly basis the sales activity by product to assist
ISCO in planning its production.  ISCO
will receive monthly and accumulated figures from Ballantyne, (“Lens Report”)
and ISCO will send Ballantyne their inventory balances.

 

5.                  ACCEPTANCE.

 

All products ordered
shall be subject to final inspection and acceptance at Ballantyne within thirty
(30) days following delivery.  If the
products are to be shipped directly to Ballantyne’s customer or delivered to
the customer without being opened and repackaged by Ballantyne, final
inspection and acceptance will be made at the customer’s facility within thirty
(30) days after delivery to the customer.

 

6.                  EXCLUSION OF OTHER DISTRIBUTORS.

 

ISCO shall help to the
extent which is reasonable and common in the relevant kind of business to
prevent its other distributors from making sales, advertising, or

 

2

 

promotion efforts in, or
ship ISCO products into Ballantyne’s Territory.

 

7.                  TRADEMARKS OR TRADE NAMES.

 

ISCO will take all
necessary steps to protect and retain all trademarks registered by ISCO in the
United States for products purchased hereunder.

 

8.                  PAYMENTS.

 

A.              Payment
terms will be thirty (30) days from receipt of goods by Ballantyne or its
customer, with a discount of two percent (2%) if paid within fourteen (14) days
from receipt of product by Ballantyne or its customer.

 

B.                All
payments shall be made in Euros.

 

9.                  EXISTING INVENTORY.

 

Ballantyne agrees that
its inventory of lenses shall remain constant at least Two Hundred Fifty
Thousand Euros (€250,000.00) for a period of one (1) year, and Ballantyne shall
order additional product required to maintain such level during the term of
this Agreement.  ISCO will use its best
efforts to assist Ballantyne to reduce any excess inventory.

 

10.            TERMINATION OF AGREEMENT.

 

A.              This
Agreement shall remain in effect for a period of thirty-six (36) months from
the effective date hereof.

 

B.                Either
party shall have the right to terminate this Agreement at the end of this
thirty-six (36) month period without show of cause by notifying the other party
of its intention to so terminate this Agreement not less than nine (9) months
prior to the expiration date.

 

C.                In
order to maintain the exclusivity of this distributorship, Ballantyne agrees to
a minimum dollar volume of purchase of One Million Euros (€1,000,000.00) during
each year in which this Agreement is in effect, of which approximately
one-fourth (1⁄4) shall be ordered during each quarterly period.  To the extent feasible, orders will be placed
each month, and shipped within thirty (30) days, as provided in Paragraph
4.B.  Ballantyne shall be given notice in
writing by ISCO of any intention to terminate its exclusive distributorship for
failure to maintain this dollar volume of purchase, and Ballantyne shall have a
minimum of forty-five (45) days in which to cure any such deficiency.

 

D.               This
Agreement shall be automatically renewed at the end of this thirty-six (36)

 

3

 

month period, determined as set forth above, for one-year periods
thereafter unless either party notifies the other party, without show of cause,
not less than nine (9) months prior to the end of any such one year period, of
its intention not to renew this Agreement.

 

E.                 This
Agreement may be terminated by either party if the other party becomes
insolvent, makes a general assignment for the benefit of creditors, declares
bankruptcy, becomes subject to any proceeding in bankruptcy, receivership, or
insolvency, or is otherwise unwilling or unable to make shipments or fulfill
its commitments under this Agreement, or commits a breach, or nonobservance of
any of the provisions hereof.

 

F.                 Notice
of intent to terminate shall be given as provided in Article 13 hereof.  The effective date of such notice shall be
the date of receipt by the other party.

 

11.            WARRANTY.

 

A.              ISCO
agrees and warrants that all articles, materials, and products supplied to
Ballantyne or its customers will conform to the specifications, drawings,
samples, or other descriptions, including those contained in sales literature
or technical bulletins, furnished or adopted by ISCO, except for intentional or
negligent acts of third parties.

 

B.                All
products will be of good material and workmanship and free from defects and
will be of merchantable quality and fit for the intended purpose.  Such warranties by ISCO shall run to the
benefit of Ballantyne, its employees and purchasers.  ISCO further warrants that all articles
delivered under this Agreement will be free from defect in design and
manufacture.  Ballantyne’s approval of
designs furnished by ISCO shall not relieve ISCO of its obligations under this
warranty.

 

C.                Any
articles or materials not accepted or not in conformance with specifications or
generally accepted practices or workmanship may be returned to ISCO, freight
collect, for replacement, repair, credit, or refund, depending on the damage or
failure.  Any item which has not been
placed in use shall be replaced, or a credit or refund given.  Any item which has been placed in use may be
repaired, but is to be put in new condition. 
This warranty shall be effective for a period of one (1) year following
the date of receipt of the product by Ballantyne.

 

12.            GENERAL PROVISIONS.

 

A.              This
Agreement contains all of the understandings of the parties hereto, and, as of
its effective date, supersedes any and all other agreements written or oral
between them.  No waiver, modification,
or amendment hereof shall be effective unless made in writing and executed by
both parties hereto.

 

4

 

B.                ISCO
shall defend and hold Ballantyne harmless from all claims or causes of action
by any third party with reference to or in connection with the distributorship
granted herein, or the right of Ballantyne to market and distribute the
products of ISCO within the Territory.

 

C.                This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their legal representatives, successors, or assignees.

 

D.               If
any covenant, agreement, term or provisions of this Agreement, as from time to
time amended, or the application thereof to any situation or circumstance shall
be invalid or unenforceable, the remainder of this Agreement or the application
of any covenant, agreement, term or provision not affected shall be valid and
enforceable to the fullest extent permitted by applicable law.

 

E.                 This
Agreement shall be construed and interpreted in accordance with the UN Sales
Convention (United Nations Convention on Contracts for the International Sale
of Goods).  Any controversy that cannot
be settled directly in practical and dignified negotiation shall be submitted
to arbitration in Douglas County, Nebraska, by and in accordance with the rules
of the American Arbitration Association then prevailing and the Federal
Arbitration Act, 9 U.S.C. §§ 1-16, and judgment upon the award by the
arbitrator may be entered in any court having jurisdiction thereof.

 

13.            NOTICES.

 

All notices regarding
this Agreement shall be in writing, sent by certified mail, or delivered by a
messenger who will obtain a receipt for delivery, directed to:

 

A.              In
the case of ISCO:

 

EXECUTIVE DIRECTOR

Anna-Vandenhoeck-Ring 5

37081 Gottingen

Germany

 

B.                In
the case of Ballantyne:

 

PRESIDENT

Ballantyne of Omaha, Inc.

4350 McKinley

Omaha, Nebraska 68112

U.S.A.

 

5

 

In confirmation hereof
the parties hereto have caused this Agreement to be signed by a duly authorized
individual or officer of the company, each certifying that he is empowered to
act on behalf of his company as of the month, day and year written below.

 

	
   

  	
  ISCO PRECISION OPTICS
  GmbH

  	
  BALLANTYNE OF OMAHA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Hans J. Manus

  	
   

  	
  By:

  	
  /s/ John Wilmers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Hans J. Manus

  	
   

  	
   

  	
  John Wilmers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Printed Name

  	
   

  	
  Printed Name

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   Managing Director

  	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  28. October 2004

  	
   

  	
   

  	
  10-28-04

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
   

  	
  Date

  

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]