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                                                                     EXHIBIT 4.1

                          AGREEMENT AND PLAN OF MERGER

         AGREEMENT AND PLAN OF MERGER (this "Agreement") dated as of August 31,
2001 (the "Execution Date"), by and among PLUS SOLUTIONS, INC., a Nevada
corporation ("Plus Solutions"), PLSO ACQUISITION, INC., a Delaware corporation
and wholly-owned subsidiary of Plus Solutions ("PLSO Acquisition"), and APPLIED
TECHNOLOGY SOLUTIONS INTEGRATORS, INC., a Delaware corporation ("ATSI").

         WHEREAS, the respective Boards of Directors of Plus Solutions, PLSO
Acquisition and ATSI have approved the merger of PLSO Acquisition into ATSI
pursuant to the terms and conditions hereinafter set forth (the "Merger"); and

         WHEREAS, the parties desire to make certain representation, warranties
and agreements in connection with the Merger and also to prescribe various
conditions to the Merger.

         NOW, THEREFORE, in consideration of the foregoing recitals, which shall
be considered an integral part of this Agreement, and the covenants, conditions,
representations and warranties hereinafter set forth, the parties hereby agree
as follows:

                                    ARTICLE I
                                   THE MERGER

         1.1 THE TRANSACTION. At the Effective Time (as hereinafter defined),
PLSO Acquisition shall be merged with and into ATSI (PLSO Acquisition and ATSI
are referred to as the "Constituent Corporations"), the separate existence of
PLSO Acquisition shall cease and ATSI shall continue as the surviving
corporation under the corporate name "Applied Technology Solutions Integrators,
Inc." (the "Surviving Corporation"), all upon the terms and subject to the
conditions provided for in this Agreement and pursuant to the Delaware General
Corporation Law (the "Delaware Act").

         1.2 CLOSING AND EFFECTIVE TIME. Subject to the provisions of this
Agreement, the parties shall hold a closing (the "Closing") on (a) the first
business day after the Execution Date or (b) such other date as the parties
hereto may agree (the "Closing Date"), at such time and place as the parties
hereto may agree. The Merger shall become effective upon the filing of Articles
of Merger with the Secretary of State of Delaware at such later time as is
provided in the Articles of Merger (the "Effective Time"). As a result of the
Merger, ATSI shall become a wholly owned subsidiary of Plus Solutions.

         1.3 EFFECTS OF THE MERGER. The Merger shall have the effects specified
in the Delaware Act and, at and after the Effective Time, the Surviving
Corporation shall possess all of the rights, privileges, powers and franchises,
and be subject to all of the restrictions, disabilities and duties of each of
the Constituent Corporations; and all singular rights, privileges, powers and
franchises of each of the Constituent Corporations, and all property, real,
personal and mixed, and all debts due to either of the Constituent Corporations
on whatever account, and all other things in action or belonging to each of the
Constituent Corporations, shall be vested in the

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Surviving Corporation; and all property, rights, privileges, powers and
franchises, and all and every other interest shall thereafter become the
property of the Surviving Corporation as they were of the Constituent
Corporations; but all rights of creditors and all liens upon any property of
either of the Constituent Corporations shall be preserved unimpaired, and all
debts, liabilities and duties of the Constituent Corporations shall thenceforth
attach to the Surviving Corporation, and may be enforced against it to the same
extent as if said debts and liabilities had been incurred by it.

         1.4 CERTIFICATE OF INCORPORATION, BYLAWS, DIRECTORS AND OFFICERS. The
Certificate of Incorporation of the Surviving Corporation in effect immediately
prior to the Effective Time, shall be and remain the Certificate of
Incorporation of the Surviving Corporation, until thereafter amended in
accordance with the provisions therein and as provided by the Delaware Act.
Similarly, the Bylaws of the Surviving Corporation in effect immediately prior
to the Effective Time shall be the Bylaws of the Surviving Corporation until
thereafter amended in accordance with its terms. Finally, the directors and
officers of the Surviving Corporation shall be the directors and officers of the
Surviving Corporation at the Effective Time, until their successors are duly
elected and qualified.

         1.5 CONVERSION AND CANCELLATION OF SHARES IN THE MERGER. As of the
Effective Time, by virtue of the Merger and without any action on the part of
Plus Solutions, PLSO Acquisition, ATSI or the holder of any shares of PLSO
Acquisition or ATSI, the following shall occur:

                  (a) CAPITAL STOCK OF PLSO ACQUISITION. Each issued and
         outstanding share of the capital stock of PLSO Acquisition shall be
         converted into and become one fully paid and nonassessable share of
         Common Stock, no par value per share, of the Surviving Corporation.

                  (b) CAPITAL STOCK OF ATSI. Each issued and outstanding share
         of the capital stock of ATSI shall be converted into the right to
         receive 0.10 share (the "Merger Shares") of Series B Preferred stock,
         par value $.001 per share, of Plus Solutions (the "Series B Preferred
         Stock") with the result that after the Effective Time, ATSI will become
         a wholly owned subsidiary of Plus Solutions. All such converted shares
         of ATSI will no longer be outstanding and shall automatically be
         cancelled and retired and shall cease to exist, and each holder of a
         certificate representing any such shares shall cease to have any rights
         with respect thereto, except the right to receive the Merger Shares.

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                                   ARTICLE II
                         REPRESENTATIONS AND WARRANTIES

         2.1 REPRESENTATIONS AND WARRANTIES OF PLUS SOLUTIONS AND PLSO
ACQUISITION. Plus Solutions and PLSO Acquisition jointly and severally represent
and warrant to ATSI as follows:

                  (a) ORGANIZATION, STANDING AND POWER.

                           (i) Plus Solutions is a corporation duly organized,
                  validly existing and in good standing under the laws of the
                  State of Nevada, has all requisite power and authority to own,
                  lease and operate its properties and to carry on its business
                  as now being conducted, and is duly qualified and in good
                  standing to do business in each jurisdiction in which the
                  nature of its business or the ownership or leasing of its
                  properties makes such qualification necessary other than in
                  such jurisdictions where the failure so to qualify would not
                  have a material adverse affect on Plus Solutions and PLSO
                  Acquisition (together, the "Plus Solutions Entities") taken as
                  a whole.

                           (ii) The only subsidiary of Plus Solutions is PLSO
                  Acquisition. Plus Solutions does not own or hold securities or
                  debt obligations of any entity other than PLSO Acquisition.
                  All shares of capital stock or ownership interests of PLSO
                  Acquisition have been duly authorized, are fully paid and
                  nonassessable, and are lawfully owned of record and
                  beneficially by the owner thereof free and clear of all
                  pledges, liens, claims, security interests and other charges
                  or defects in title of any nature whatsoever.

                           (iii) PLSO Acquisition is duly organized, validly
                  existing, in good standing and qualified to do business in
                  each jurisdiction in which the nature of its business or the
                  ownership or leasing of its properties makes such
                  qualification necessary other than in such jurisdictions where
                  the failure so to qualify would not have a material adverse
                  effect on the Plus Solutions Entities taken as a whole.

                  (b) CAPITAL STRUCTURE. The authorized capital stock of Plus
         Solutions consists of 90,000,000 shares of Common Stock; par value of
         $0.001 per share, of Plus Solutions (the "Common Stock) and 10,000,000
         shares of preferred stock, par value $0.001 per share, of Plus
         Solutions (the "Preferred Stock"). On the Execution Date, 39,635,000
         shares of Common Stock were issued and outstanding. 100,000 shares of
         Preferred Stock have been designated Series A Preferred Stock, of which
         100,000 shares are issued and outstanding, and 1,100,000 shares of
         Preferred Stock have been designated Series B Preferred Stock, of which
         no shares are currently issued or outstanding. On the Execution Date,
         no shares of Common Stock were held by Plus Solutions in its treasury.
         All outstanding shares of Common Stock and Preferred Stock are, and the
         Merger Shares to be issued will be validly issued, fully paid and
         nonassessable and not subject to preemptive rights. All of the issued
         and outstanding shares of Common Stock and Preferred Stock were issued
         in compliance with all Federal and state securities laws.

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                  (c) CERTIFICATE OF INCORPORATION, BYLAWS, AND MINUTE BOOKS.
         The copies of the Certificate of Incorporation, bylaws and other
         organizational documents of Plus Solutions and each Plus Solutions
         Entity which have been delivered to ATSI are true, correct and complete
         copies thereof.

                  (d) AUTHORITY.

                           (i) Plus Solutions has all requisite power and
                  authority to enter into this Agreement and to consummate the
                  transactions contemplated hereby. The execution and delivery
                  of this Agreement and the consummation of the transactions
                  contemplated hereby have been duly authorized by the Board of
                  Directors of Plus Solutions. No other corporate or shareholder
                  proceedings on the part of Plus Solutions are necessary to
                  authorize the Merger, or the other transactions contemplated
                  hereby.

                           (ii) This Agreement has been duly executed and
                  delivered by Plus Solutions and constitutes a valid and
                  binding obligation enforceable in accordance with its terms.

                  (e) CONFLICT WITH OTHER AGREEMENTS; APPROVALS. The execution
         and delivery of this Agreement does not, and the consummation of the
         transactions contemplated hereby will not result in any violation of,
         or default (with or without notice or lapse of time, or both) under, or
         give rise to a right of termination, cancellation or acceleration of
         any obligation or the loss of a material benefit under, or the creation
         of a lien, pledge, security interest or other encumbrance on assets
         (any such conflict, violation, default, right of termination,
         cancellation or acceleration, loss or creation, a "Violation") pursuant
         to any provision of the Certificate of Incorporation, bylaws or any
         organizational document of Plus Solutions or any Plus Solutions or,
         result in any Violation of any loan or credit agreement, note,
         mortgage, indenture, lease, benefit plan or other agreement,
         obligation, instrument, permit, concession, franchise, license,
         judgment, order, decree, statute, law, ordinance, rule or regulation
         applicable to Plus Solutions or any Plus Solutions Entity or their
         respective properties or assets which Violation would have a material
         adverse effect on Plus Solutions and the Plus Solutions Entities taken
         as a whole. No consent, approval, order or authorization of, or
         registration, declaration or filing with, any court, administrative
         agency or commission or other governmental authority or
         instrumentality, domestic or foreign (a "Governmental Entity") is
         required by or with respect to Plus Solutions or any Plus Solutions
         Entity in connection with the execution and delivery of this Agreement
         by Plus Solutions or the consummation by Plus Solutions of the
         transactions contemplated hereby, the failure to obtain which would
         have a material adverse effect on Plus Solutions and the Plus Solutions
         Entities, taken as a whole, except for (i) the filing of such documents
         with, and the obtaining of such orders from, the Securities and
         Exchange Commission (the "SEC"), the various state authorities,
         including state securities authorities, that are required in connection
         with the transactions contemplated by this Agreement; and (ii) the
         filing of Articles of Merger with the Secretary of State of Delaware.

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         2.2 REPRESENTATIONS AND WARRANTIES OF ATSI. ATSI represents and
warrants to Plus Solutions and PLSO Acquisition as follows:

                  (a) ORGANIZATION, STANDING AND POWER.

                           (i) ATSI is a corporation duly organized, validly
                  existing and in good standing under the laws of the State of
                  Delaware, has all requisite power and authority to own, lease
                  and operate its properties and to carry on its business as now
                  being conducted, and is duly qualified and in good standing to
                  do business in each jurisdiction in which the nature of its
                  business or the ownership or leasing of its properties makes
                  such qualification necessary other than in such jurisdictions
                  where the failure so to qualify would not have a material
                  adverse effect on ATSI taken as a whole.

                           (ii) ATSI has no subsidiaries. ATSI does not own or
                  hold securities or debt obligations of any entity.

                  (b) CAPITAL STRUCTURE. The authorized capital stock of ATSI
         consists of 13,500,000 shares of common stock, par value $0.001 per
         share (the "ATSI Common Stock"), 1,600 shares of Class A Preferred
         Stock, par value $1.00 per share (the "ATSI Class A Preferred Stock"),
         and 6,400 shares of Class AA Preferred Stock, par value $1.00 per share
         (the "ATSI Class AA Preferred Stock" and, collectively with the ATSI
         Class A Preferred Stock, the "ATSI Preferred Stock"). As of the
         Execution Date, 7,727,102 shares of ATSI Common Stock were outstanding,
         no shares of ATSI Common Stock were held by ATSI in treasury and no
         shares of ATSI Preferred Stock were outstanding. All outstanding shares
         of ATSI Common Stock are validly issued, fully paid and nonassessable
         and not subject to preemptive rights or other restrictions on transfer.
         All of the issued and outstanding shares of ATSI Common Stock were
         issued in compliance with all Federal and state securities Laws. Other
         than as set forth on Schedule 2.2(b), there are no options, warrants,
         calls, agreements or other rights to purchase or otherwise acquire from
         ATSI at any time, or upon the happening of any stated event, any shares
         of the capital stock of ATSI, whether or not presently issued or
         outstanding.

                  (c) CERTIFICATE OF INCORPORATION, BYLAWS AND MINUTE BOOKS. The
         copies of the Articles of Incorporation, bylaws and other
         organizational documents of ATSI which have been delivered to Plus
         Solutions are true, correct and complete copies thereof. The minute
         books of ATSI which have been made available for inspection contain
         accurate minutes of all meetings and accurate consents in lieu of
         meetings of the Board of Directors (and any committee thereof) and of
         the shareholders of ATSI since the date of incorporation and accurately
         reflect all transactions referred to in such minutes and consents in
         lieu of meetings.

                  (d) AUTHORITY. ATSI has all requisite power and authority to
         enter into this Agreement and to consummate the transactions
         contemplated hereby. The execution and delivery of this Agreement and
         the consummation of the transactions contemplated

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         hereby have been duly authorized by the Board of Directors of ATSI and
         Shareholders of ATSI, and no other corporate or shareholder proceedings
         on the part of ATSI are necessary to authorize the Merger and the other
         transactions contemplated hereby. This Agreement has been duly executed
         and delivered by ATSI and constitutes a valid and binding obligation of
         ATSI enforceable in accordance with its terms.

                  (e) CONFLICT WITH AGREEMENTS; APPROVALS. The execution and
         delivery of this Agreement does not, and the consummation of the
         transactions contemplated hereby will not, conflict with, or result in
         any Violation pursuant to any provision of the Articles of
         Incorporation, bylaws or any organizational document of ATSI or result
         in any Violation of any loan or credit agreement, note, mortgage,
         indenture, lease, benefit plan or other agreement, obligation,
         instrument, permit, concession, franchise, license, judgment, order,
         decree, statute, law, ordinance, rule or regulation applicable to ATSI
         or its properties or assets, which Violation would have a material
         adverse effect on ATSI taken as a whole. No consent, approval, order or
         authorization of, or registration, declaration or filing with, any
         Governmental Entity is required by or with respect to ATSI in
         connection with the execution and delivery of this Agreement by ATSI or
         the consummation by ATSI of the transactions contemplated hereby, the
         failure to obtain which would have a material adverse effect on ATSI
         taken as a whole except for the filing of Articles of Merger with the
         Secretary of State of Delaware.

                  (f) FINANCIAL STATEMENTS. ATSI has furnished Plus Solutions
         with unaudited balance sheets as of June 30, 2001, including a complete
         schedule of accounts payable (the "Plus Financial Statements"). The
         ATSI Financial Statements including the footnotes thereto, except as
         indicated therein, have been prepared in accordance with generally
         accepted accounting principles. The ATSI Financials Statements are
         complete and correct in all material respects and fairly present in all
         material respects the financial condition and results of the operations
         of ATSI and show all material liabilities absolute or contingent of
         ATSI.

                  (g) BOOKS AND RECORDS. ATSI has made and will make available
         for inspection by Plus Solutions upon reasonable request all the books
         of account, relating to the business of ATSI. Such books of account of
         ATSI have been maintained in the ordinary course of business. All
         documents furnished or caused to be furnished to Plus Solutions by ATSI
         are true and correct copies, and there are no amendments or
         modifications thereto except as set forth in such documents.

                  (h) COMPLIANCE WITH LAWS. ATSI is and has been in compliance
         in all material respects with all laws, regulations, rules, orders,
         judgments, decrees and other requirements and policies imposed by any
         Governmental Entity applicable to it, its properties or the operation
         of its businesses.

                  (i) LIABILITIES AND OBLIGATIONS. ATSI has no material
         liabilities or obligations (absolute, accrued, contingent or otherwise)
         except liabilities that are reflected and reserved against on the ATSI
         Financial Statements.

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                  (j) LITIGATION. Except as set forth in Schedule 2.2(j), there
         is no suit, action or proceeding pending, or, to the Knowledge of ATSI,
         threatened against or affecting ATSI which is reasonably likely to have
         a Material Adverse Effect on ATSI, nor is there any judgment, decree,
         injunction, rule or order of any Governmental Entity or arbitrator
         outstanding against ATSI having, or which, insofar as reasonably can be
         foreseen, in the future could have, any such effect.

                  (k) TAXES. ATSI has filed or will file within the time
         prescribed by law (including extension of time approved by the
         appropriate taxing authority) all tax returns and reports required to
         be filed with the United States Internal Revenue Service and with all
         other jurisdictions where such filing is required by law; and ATSI has
         paid, or has made adequate provision in the ATSI Financial Statements
         for the payment of all taxes, interest, penalties, assessments or
         deficiencies due and payable on, and with respect to all periods ending
         prior to the Closing Date. ATSI knows of (i) no other tax returns or
         reports which are required to be filed which have not been so filed and
         (ii) no unpaid assessment for additional taxes for any fiscal period or
         any basis therefore.

                  (l) LICENSES, PERMITS; INTELLECTUAL PROPERTY.

                           (i) ATSI owns or possesses in the operation of its
                  business all material Authorizations which are necessary for
                  them to conduct their business as now conducted. ATSI is not
                  in material default, and has not received any notice of any
                  claim of default, with respect to any such Authorization or
                  any notice of any other claim or proceeding or threatened
                  proceeding relating to any such Authorization or claimed lack
                  of any necessary Authorization. Neither the execution or
                  delivery of this Agreement nor the consummation of the
                  transactions contemplated hereby will require any notice or
                  consent under or have any material adverse effect upon any
                  such Authorization.

                           (ii) Set forth in Schedule 2.2(l) is a list of the
                  material domestic and foreign patents, patent applications,
                  patent licenses, software, corporate or other names, trade
                  names, trademarks, service marks, trademark registrations and
                  applications, service mark registrations and applications,
                  copyright registrations and applications licensed or owned by
                  ATSI (collectively the "Intellectual Property"). ATSI does not
                  license any Intellectual Property to third parties. ATSI owns
                  the entire right, title and interest in and to the
                  Intellectual Property and each item constituting part of the
                  Intellectual Property has been, to the extent indicated in
                  Schedule 2.2(l), duly registered with, filed in or issued by,
                  as the case may be, the United States Patent and Trademark
                  Office or such other government entity, domestic or foreign,
                  as is indicated in Schedule 2.2(l) and, to the knowledge of
                  ATSI, such registrations, filings and issuances remain in full
                  force and effect and there are no pending proceedings or
                  litigation or other adverse claims made in writing affecting
                  or with respect to the Intellectual Property.

                  (m) TRANSACTIONS AND AFFILIATES. Except as described in
         Schedule 2.2(m), no director or officer of ATSI or any member of his or
         her immediate family, is a party to

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         any Contract or other business arrangement or relationship of any kind
         with ATSI or, except for the ownership of not more than 1% of the stock
         of a company having a class of securities registered pursuant to the
         Exchange Act, has an ownership interest in any business, corporate or
         otherwise, which is a party to, or in any property which is the subject
         of, business arrangements or relationships of any kind with ATSI.

                                   ARTICLE III
                    COVENANTS RELATING TO CONDUCT OF BUSINESS

         3.1 COVENANTS OF ATSI AND PLUS SOLUTIONS. During the period from the
date of this Agreement and continuing until the Effective Time, ATSI and Plus
Solutions each agree as to itself and its related entities and subsidiaries that
(except as expressly contemplated or permitted by this Agreement, or to the
extent that the other party shall otherwise consent in writing):

                  (a) ORDINARY COURSE. Each party and their respective
         subsidiaries shall carry on their respective businesses in the Ordinary
         Course of Business in substantially the same manner as heretofore
         conducted.

                  (b) DIVIDENDS; CHANGES IN STOCK. No party shall, nor shall any
         party permit any of its subsidiaries to, nor shall any party propose
         to, (i) declare or pay any dividends on or make other distributions in
         respect of any of its capital stock, (ii) split, combine or reclassify
         any of its capital stock or issue or authorize or propose the issuance
         of any other securities in respect of, in lieu of or in substitution
         for shares of its capital stock or (iii) repurchase or otherwise
         acquire, or permit any subsidiary to purchase or otherwise acquire, any
         shares of its capital stock.

                  (c) ISSUANCE OF SECURITIES. No party shall, nor shall any
         party permit any of its subsidiaries to, issue, deliver or sell, or
         authorize or propose the issuance, delivery or sale of, any shares of
         its capital stock of any class, any voting debt or any securities
         convertible into, or any rights, warrants or options to acquire, any
         such shares, voting debt or convertible securities.

                  (d) GOVERNING DOCUMENTS. No party shall amend or propose to
         amend its Certificate of Incorporation or bylaws.

                  (e) NO SOLICITATIONS. No party shall, nor shall any party
         permit any of its related entities or subsidiaries to, nor shall it
         authorize or permit any of its officers, directors or employees or any
         investment banker, financial advisor, attorney, accountant or other
         representative retained by it or any of its related entities or
         subsidiaries to, solicit or encourage (including by way of furnishing
         information), or take any other action to facilitate, any inquiries or
         the making of any proposal which constitutes, or may reasonably be
         expected to lead to, any takeover proposal, or agree to or endorse any
         takeover proposal. Each party shall promptly advise the other orally
         and in writing of any such inquiries or proposals. As used in this
         Agreement, "takeover proposal" shall mean any tender or exchange offer,
         proposal for a Merger, consolidation or other

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         business combination involving a party hereto or any related entity or
         subsidiary of such party or any proposal or offer to acquire in any
         manner a substantial equity interest in, or a substantial portion of
         the assets of, such party or related entity or any of its subsidiaries
         other than the transactions contemplated by this Agreement.

                  (f) NO ACQUISITIONS. No party shall, nor shall any party
         permit any of its related entities or subsidiaries to, acquire or agree
         to acquire by merging or consolidating with, or by purchasing a
         substantial equity interest in or a substantial portion of the assets
         of, or by any other manner, any business or any corporation,
         partnership, association or other business organization or division
         thereof or otherwise acquire or agree to acquire any assets in each
         case which are material, individually or in the aggregate, to such
         party and related entities and its subsidiaries taken as a whole.

                  (g) NO DISPOSITIONS. Except for the transfer of assets in the
         ordinary course of business consistent with prior practice, no party
         shall, nor shall any party permit any of its related entities or
         subsidiaries to, sell, lease, encumber or otherwise dispose of, or
         agree to sell, lease, encumber or otherwise dispose of, any of its
         assets, which are material, individually or in the aggregate, to such
         party, its related entities and its subsidiaries taken as a whole.

                  (h) INDEBTEDNESS. No party shall, nor shall any party permit
         any of its related entities or subsidiaries to, incur any indebtedness
         for borrowed money or guarantee any such indebtedness or issue or sell
         any debt securities or warrants or rights to acquire any debt
         securities of such party or related entities or any of its subsidiaries
         or guarantee any debt securities of others other than in each case in
         the ordinary course of business consistent with prior practice.

                  (i) COMPENSATION. No party shall grant any increase in the
         salary or other compensation of its officers or other employees or
         grant any bonus to any officer or other employee or enter into any
         employment agreement or make any loan to or enter into any material
         transaction of any other nature with any officer or other employee of
         such party.

                  (j) NO NEW SEVERANCE. No party shall take any action to
         institute any new severance or termination pay practices with respect
         to any directors or officers or other employees of such party or to
         increase the benefits payable under its severance or termination pay
         practices.

                  (k) BENEFIT PLANS. No party shall adopt or amend, in any
         respect, except as may be required by applicable law or regulation, any
         bonus, profit sharing, compensation, stock option, restricted stock,
         pension, retirement, deferred compensation, employment or other
         employee benefit plan, agreement, trust, fund, plan or arrangement for
         the benefit or welfare of any directors or officers or other employees
         except as otherwise contemplated by this Agreement.

         3.2 OTHER ACTIONS. No party shall, nor shall any party permit any of
its related entities subsidiaries to, take any action that would or is
reasonably likely to result in any of its

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representations and warranties set forth in this Agreement being untrue as of
the date made (to the extent so limited), or in any of the conditions to the
Merger set forth in Article V not being satisfied.

         3.3 ADVICE OF CHANGES. Each party shall confer on a regular and
frequent basis with the other, report on operational matters and promptly advise
the other orally and in writing of any change or event having, or which, insofar
as can reasonably be foreseen, could have, a Material Adverse Effect on such
party and its related entities and subsidiaries taken as a whole.

         3.4 FILINGS. Each party hereto shall provide to each other party copies
of all filings intended to be made by such party with any Governmental Entity.

         3.5 PRESS RELEASES. Neither Plus Solutions nor ATSI will make any press
release or other report to third parties regarding this Agreement or the matters
and transactions contemplated thereby, except (a) as required by applicable law
and, then, containing only such information as is required by such applicable
law; or (b) as is approved by both Plus Solutions and ATSI prior to
dissemination.

                                   ARTICLE IV
                              ADDITIONAL AGREEMENTS

         4.1 RESTRICTED PLUS SOLUTIONS SHARES. The Merger Shares will not be
registered under the Securities Act, but will be issued pursuant to an exemption
from such registration requirements based upon representations and warranties
made by the shareholders of ATSI. Accordingly, the Merger Shares will constitute
"restricted securities" as defined in Rule 144 under the Securities Act and the
holders thereof will not be able to transfer such Merger Shares except upon
compliance with the registration requirements of the Securities Act and
applicable state securities laws or an exemption therefrom. The certificates
evidencing the Merger Shares shall contain a legend to the foregoing effect.

         4.2 LEGAL CONDITIONS TO MERGER. Each of Plus Solutions and ATSI will
take all reasonable actions necessary to comply promptly with all legal
requirements which may be imposed on itself with respect to the Merger and will
promptly cooperate with and furnish information to each other in connection with
any such requirements imposed upon any of them or any of their related entities
or subsidiaries in connection with the Merger. Each party will, and will cause
its related entities or subsidiaries to, take all reasonable actions necessary
to obtain (and will cooperate with each other in obtaining) any consent,
authorization, order or approval of, or any exemption by, any Governmental
Entity or other public or private third party, required to be obtained or made
by Plus Solutions or ATSI or any of their related entities or subsidiaries in
connection with the Merger or the taking of any action contemplated thereby or
by this Agreement.

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         4.3 PLUS SOLUTIONS BOARD OF DIRECTORS AND OFFICERS. All of the officers
and directors of Plus Solutions shall resign as of the Closing Date and the
following persons shall be appointed as officers and directors of Plus Solutions
as of such date:

         Directors:        Max Golden
                           Stephen Gray
                           David Ballard
                           Paul Harkins

         Officers:         Paul Harkins, President and Chief Executive Officer
                           Rita Hunter, Vice President
                           Martha Scroggins, Secretary and Treasurer

         4.4 EXPENSES. All costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by the party
incurring such expense.

                                    ARTICLE V
                              CONDITIONS PRECEDENT

         5.1 CONDITIONS TO EACH PARTY'S OBLIGATION TO EFFECT THE MERGER. The
respective obligation of each party to effect the Merger shall be subject to the
receipt or filing, prior to the Closing Date, of all authorizations, consents,
orders or approvals of, or declarations or filings with, or expirations of
waiting periods imposed by, any Governmental Entity, the failure to obtain which
would have a Material Adverse Effect on ATSI or any Plus Solutions Entity, taken
as a whole, shall have been filed, occurred or been obtained.

         5.2 CONDITIONS OF OBLIGATIONS OF PLUS SOLUTIONS. The obligations of
Plus Solutions and PLSO Acquisition to effect the Merger are subject to the
satisfaction of the following conditions on or before the Closing Date unless
waived by Plus Solutions:

                  (a) REPRESENTATIONS AND WARRANTIES. The representations and
         warranties of ATSI set forth in this Agreement shall be true and
         correct in all material respects as of the date of this Agreement and
         (except to the extent such representations and warranties speak as of
         an earlier date) as of the Closing Date as though made on and as of the
         Closing Date, except as otherwise contemplated by this Agreement, and
         Plus Solutions shall have received a certificate signed on behalf of
         ATSI by the President of ATSI to such effect.

                  (b) PERFORMANCE OF OBLIGATIONS OF ATSI. ATSI shall have
         performed in all material respects all obligations required to be
         performed by it under this Agreement at or prior the Closing Date, and
         Plus Solutions shall have received a certificate signed on behalf of
         ATSI by the President to such effect.

                  (c) CLOSING DOCUMENTS. Plus Solutions shall have received such
         certificates and other closing documents as counsel for Plus Solutions
         shall reasonably request.

                                       11
<PAGE>   12

                  (d) CONSENTS. ATSI shall have obtained the consent or approval
         of each person whose consent or approval shall be required in
         connection with the transactions contemplated hereby under any loan or
         credit agreement, note, mortgage, indenture, lease or other agreement
         or instrument, except those for which failure to obtain such consents
         and approvals would not, in the reasonable opinion of Plus Solutions,
         individually or in the aggregate, have a material adverse effect on
         ATSI and its subsidiaries and related entities taken as a whole upon
         the consummation of the transactions contemplated hereby.

                  (e) PENDING LITIGATION. There shall not be any litigation or
         other proceeding pending or threatened to restrain or invalidate the
         transactions contemplated by this Agreement, which, in the sole
         reasonable judgment of Plus Solutions, made in good faith, would make
         the consummation of the Merger imprudent. In addition, there shall not
         be any other litigation or other proceeding pending or threatened
         against ATSI, the consequences of which, in the judgment of Plus
         Solutions, could be materially adverse to ATSI.

                  (f) SHAREHOLDER APPROVAL. ATSI shall have received the
         approval of its shareholders regarding the Merger, and Plus Solutions
         shall have received satisfactory evidence of such fact.

         5.3 CONDITIONS OF OBLIGATIONS OF ATSI. The obligation of ATSI to effect
the Merger is subject to the satisfaction of the following conditions on or
before the Closing Date unless waived by ATSI:

                  (a) REPRESENTATIONS AND WARRANTIES. The representations and
         warranties of Plus Solutions set forth in this Agreement shall be true
         and correct in all material respects as of the date of this Agreement
         and (except to the extent such representations speak as of an earlier
         date) as of the Closing Date as though made on and as of the Closing
         Date, except as otherwise contemplated by this Agreement, ATSI shall
         have received a certificate signed on behalf of Plus Solutions by the
         Chief Executive Officer to such effect.

                  (b) PERFORMANCE OF OBLIGATIONS OF PLUS SOLUTIONS AND PLSO
         ACQUISITION. Plus Solutions shall have performed in all material
         respects all obligations required to be performed by it under this
         Agreement at or prior to the Closing Date, and ATSI shall have received
         a certificate signed on behalf of Plus Solutions the Chief Executive
         Officer to such effect.

                  (c) CLOSING DOCUMENTS. ATSI shall have received such
         certificates and other closing documents as counsel for ATSI shall
         reasonably request.

                  (d) CONSENTS. Plus Solutions shall have obtained the consent
         or approval of each person whose consent or approval shall be required
         in connection with the transactions contemplated hereby under any loan
         or credit agreement, note, mortgage,

                                       12
<PAGE>   13

         indenture, lease or other agreement or instrument, except those for
         which failure to obtain such consents and approvals would not, in the
         reasonable opinion of ATSI, individually or in the aggregate, have a
         material adverse effect on Plus Solutions and its subsidiaries and
         related entities, taken as a whole upon the consummation of the
         transactions contemplated hereby.

                  (e) PENDING LITIGATION. There shall not be any litigation or
         other proceeding pending or threatened to restrain or invalidate the
         transactions contemplated by this Agreement, which, in the sole
         reasonable judgment of ATSI, made in good faith, would make the
         consummation of the Merger imprudent. In addition, there shall not be
         any other litigation or other proceeding pending or threatened against
         Plus Solutions or any Plus Solutions Entity, the consequences of which,
         in the judgment of ATSI, could be materially adverse to Plus Solutions
         or any Plus Solutions Entity.

                                   ARTICLE VI
                            TERMINATION AND AMENDMENT

         6.1 TERMINATION. This Agreement may be terminated at any time prior to
the Effective Time:

                  (a) by mutual consent of Plus Solutions and ATSI;

                  (b) by either Plus Solutions or ATSI if there has been a
         material breach of any representation, warranty, covenant or agreement
         on the part of the other set forth in this Agreement which breach has
         not been cured within 5 business days following receipt by the
         breaching party of notice of such breach, or if any permanent
         injunction or other order of a court or other competent authority
         preventing the consummation of the Merger shall have become final and
         non-appealable; or

                  (c) by either Plus Solutions or ATSI if the Merger does not
         become effective before September 15, 2001.

         6.2 EFFECT OF TERMINATION. In the event of termination of this
Agreement by either ATSI or Plus Solutions as provided in Section 6.1, this
Agreement shall forthwith become void and there shall be no liability or
obligation on the part of any party hereto. All costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be
paid by the party incurring such expenses.

         6.3 AMENDMENT. This Agreement may be amended by the parties hereto, by
action taken or authorized by their respective Boards of Directors, provided no
amendment shall be made which by law requires approval by the shareholders of
any party without such further approval. This Agreement may not be amended
except by an instrument in writing signed on behalf of each of the parties
hereto.

                                       13
<PAGE>   14

         6.4 EXTENSION; WAIVER. At any time prior to the Effective Time, the
parties hereto, by action taken or authorized by their respective Board of
Directors, may, to the extent legally allowed, (a) extend the time for the
performance of any of the obligations or other acts of the other parties hereto,
(b) waive any inaccuracies in the representations and warranties contained
herein or in any document delivered pursuant hereto and (c) waive compliance
with any of the agreements or conditions contained herein. Any agreement on the
part of a party hereto to any such extension or waiver shall be valid only if
set forth in a written instrument signed on behalf of such party.

                                   ARTICLE VII
                               GENERAL PROVISIONS

         7.1 NOTICES. All notices and other communications hereunder shall be in
writing and shall be deemed given if delivered personally, telecopied (which is
confirmed) or mailed by registered or certified mail (return receipt requested)
to the parties at the following addresses (or at such other address for a party
as shall be specified by like notice):

                  (a)      If to Plus Solutions, to

                           Plus Solutions, Inc.
                           14677 Midway Road, Suite 206
                           Addison, Texas 75001
                           United States of America
                           Attn: Max Golden, President and Chief Executive
                                 Officer
                           Facsimile No.: 972-687-0051

                           with a copy to

                           Patton Boggs
                           2001 Ross Avenue, Suite 3000
                           Dallas, Texas 75201
                           United States of America
                           Attn: Fred Stovall, Esq.
                           Facsimile No.: 214-758-1550

                  (b)      If to ATSI, to

                           Applied Technology Solutions Integrators, Inc.
                           54 Tower Hill Road
                           Tuxedo Park, New York 10987
                           Attn: President
                           Facsimile No.: 845-351-2299

                                       14
<PAGE>   15

                           with a copy to

                           Arnold E. Reiter
                           Reiter and Zipern
                           75 Montebello Road
                           Suffern, New York 10901
                           Facsimile No.: 845-357-2215

         7.2 INTERPRETATION. When a reference is made in this Agreement to
Sections, such reference shall be to a Section of this Agreement unless
otherwise indicated. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement. Whenever the words "include", "includes" or "including" are used
in this Agreement, they shall be deemed to be followed by the words "without
limitation". The phrase "made available" in this Agreement shall mean that the
information referred to has been made available if requested by the party to
whom such information is to be made available.

         7.3 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when two or more counterparts have been signed by each of
the parties and delivered to the other parties, it being understood that all
parties need not sign the same counterpart. This Agreement may be executed by
facsimile signature and the facsimile signature by any party shall constitute an
original in all respects.

         7.4 ENTIRE AGREEMENT; NO THIRD PARTY BENEFICIARIES; RIGHTS OF
OWNERSHIP. This Agreement (including the documents and the instruments referred
to herein) constitutes the entire agreement and supersedes all prior agreements
and understandings, both written and oral, among the parties with respect to the
subject matter hereof, and is not intended to confer upon any person other than
the parties hereto any rights or remedies hereunder.

         7.5 GOVERNING LAW. This Agreement shall be governed and construed in
accordance with the laws of the State of Texas without regard to principles of
conflicts of law. Each party hereby irrevocably submits to the jurisdiction of
any Texas state court located in Dallas County or the United States District
Courts in the Northern District of Texas in respect of any suit, action or
proceeding arising out of or relating to this Agreement.

         7.6 PUBLICITY. Except as otherwise required by law, so long as this
Agreement is in effect, no party shall issue or cause the publication of any
press release or other public announcement with respect to the transactions
contemplated by this Agreement without the written consent of the other party,
which consent shall not be unreasonably withheld.

         7.7 ASSIGNMENT. Neither this Agreement nor any of the rights, interests
or obligations hereunder shall be assigned by any of the parties hereto (whether
by operation of law or otherwise) without the prior written consent of the other
parties, except that Plus Solutions or ATSI may assign, in its sole discretion,
any or all of its rights, interests and obligations

                                       15
<PAGE>   16

hereunder to any direct or indirect wholly owned subsidiary of such company.
Subject to the preceding sentence, this Agreement will be binding upon, inure to
the benefit of and be enforceable by the parties and their respective successors
and assigns.

               [THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

                                       16
<PAGE>   17

         IN WITNESS WHEREOF, this Agreement has been signed by the parties set
forth below as of the date set forth above.

                                       PLUS SOLUTIONS, INC.

                                       By: /s/ MAX GOLDEN
                                          --------------------------------------
                                          President and Chief Executive Officer

                                       PLSO ACQUISITION, INC.

                                       By: /s/ MAX GOLDEN
                                          --------------------------------------
                                          President

                                       APPLIED TECHNOLOGY SOLUTIONS INTEGRATORS,
                                       INC.

                                       By: /s/ PAUL HARKINS
                                          --------------------------------------
                                          President and Chief Executive Officer

                                       17<PAGE>

                         PROFESSIONAL SERVICES AGREEMENT

                                     BETWEEN

                       THE PERMANENTE MEDICAL GROUP, INC.

                                       AND

                     USCC HEALTH CARE MANAGEMENT CORPORATION

                                       AND

                        RADIATION ONCOLOGY MEDICAL GROUP

                                       FOR

                           RADIATION ONCOLOGY SERVICES

<PAGE>

CONTENTS OF AGREEMENT

RECITALS

1.0   DEFINITIONS
   1.1   AUTHORIZATION
   1.2   COPAYMENTS
   1.3   COVERED BENEFITS
   1.4   COVERED SERVICES
   1.5   DAYS.
   1.6   EMERGENCY SERVICES
   1.7   MEMBER
   1.8   MEMBERSHIP AGREEMENT
   1.9   SERVICES
2.0   SERVICE OBLIGATIONS
   2.1   SERVICES TO BE PROVIDED.
   2.2   SUBSTITUTE PHYSICIANS AND SUBCONTRACTS.
   2.3   APPROVAL OF EMERGENCY SERVICES CLAIMS.
   2.4   PRIOR AUTHORIZATION OF NON-EMERGENCY SERVICES.
   2.5   UTILIZATION MANAGEMENT.
   2.6   QUALITY ASSESSMENT AND IMPROVEMENT.
   2.7   NOTIFICATION OF CHANGES.
3.0   BILLING AND PAYMENT
   3.1   PREPARATION OF BUDGET AND ANNUAL RECONCILIATION.
   3.2   PAYMENT OF COMPENSATION.
   3.3   ADJUSTMENTS TO PAYMENT RATE.
   3.4   BILLING OTHER SOURCES.
   3.5   COORDINATION OF BENEFITS/THIRD PARTY LIENS/SUBROGATION RIGHTS.
4.0   TERM AND TERMINATION
   4.1   TERM.
   4.2   WITHOUT CAUSE TERMINATION.
   4.3   IMMEDIATE TERMINATION
   4.4   OTHER RIGHTS OF TERMINATION.
   4.5   EFFECT OF TERMINATION AND SURVIVAL
   4.6   FAIR HEARING.
5.0   RECORDS AND CONFIDENTIALITY
   5.1   MAINTENANCE OF RECORDS.
   5.2   ACCESS TO AND COPIES OF RECORDS.
   5.3   COPIES OF CLINICAL INFORMATION.
   5.4   DISCLOSURE TO GOVERNMENT OFFICIALS.
   5.5   GOVERNMENT-REQUIRED INFORMATION.
   5.6   CONFIDENTIALITY OF INFORMATION.
   5.7   USE OF NAME.
   5.8   PUBLICITY.
6.0   INSURANCE AND RESPONSIBILITY

                                        i
<PAGE>

   6.1   INSURANCE.
   6.2   RESPONSIBILITY
7.0   LEGAL REQUIREMENTS AND CREDENTIALS
   7.1   COMPLIANCE WITH LAWS
   7.2   NONDISCRIMINATION.
   7.3   LICENSURE, CERTIFICATION AND CREDENTIALS.
8.0   DISPUTE RESOLUTION, COMPLAINTS AND INQUIRIES
   8.1   DISPUTE RESOLUTION.
   8.2   MEMBER COMPLAINTS, GRIEVANCES, INQUIRIES AND CLAIMS.
9.0   MISCELLANEOUS
   9.1   RIGHTS OF FIRST OFFER.
   9.2   INDEPENDENT CONTRACTOR.
   9.3   PRACTITIONER-PATIENT COMMUNICATION.
   9.4   THE THIRD PARTY BENEFICIARIES.
   9.5   ASSIGNMENT.
   9.6   SUCCESSORS AND ASSIGNS.
   9.7   AMENDMENT.
   9.8   GOVERNING LAW.
   9.9   NOTICES.
   9.10  NO VOLUME GUARANTEE.
   9.11  WAIVER.
   9.12  SEVERABILITY.
   9.13  INTERPRETATION OF AGREEMENT.
   9.14  ENTIRE AGREEMENT.
   9.15  UNUSUAL OR UNEXPECTED CIRCUMSTANCES.

EXHIBITS:

                                       ii
<PAGE>

This Professional Services Agreement ("Agreement") is entered into and is
effective as of this first day of August, 1999 ("Effective Date") among The
Permanente Medical Group, Inc., a California professional medical corporation
("TPMG"), Radiation Oncology Medical Group, ("ROMG"), a California professional
medical corporation, and USCC Health Care Management Corporation, a California
corporation, ('USCC"). ROMG and USCC are sometimes jointly and separately
referred to as ("Contractor").

RECITALS

A. Kaiser Foundation Health Plan, Inc., a California nonprofit pubic benefit
corporation ("Health Plan") operates health care benefit plans and provides or
arranges for the provision of medically necessary health care services to
Members (defined below) entitled to receive such services under the terms of
their Membership Agreements (defined below).

B. Health Plan has entered into an agreement with Kaiser Foundation Hospitals, a
California nonprofit public benefit corporation ("KFH"), under which KFH agrees
to provide or arrange for certain medically necessary hospital services for
Members.

C. Health Plan has entered into an agreement with TPMG, under which TPMG agrees
to provide or arrange for certain medically necessary professional and other
outpatient services for Members.

D. TPMG desires to arrange for the provision of professional services to Members
by contracting with providers, such as Contractor. Contractor desires to provide
Services (as defined below) to Members in accord with the terms of this
Agreement.

E. ROMG is a California professional medical corporation that provides certain
outpatient radiology oncology services in facilities and with equipment owned or
leased by USCC.

F. USCC owns and leases outpatient radiology oncology facilities and equipment
and, provides certain administrative services to ROMG. USCC is a wholly-owned
subsidiary of US Cancer Care, Inc.

G. For purposes of this Agreement, the term "KP" means Health Plan, KFH, and
TPMG, collectively.

NOW THEREFORE, the parties agree as follows:

1.0 DEFINITIONS

1.1 AUTHORIZATION means the process of prior written approval for the provision
of Non-emergency Services as set forth in Section 2.4.

1.2 COPAYMENTS are amounts payable by the Member pursuant to the Member's
Membership Agreement which are charged by Health Plan to the Member or by

                                     Page 1
<PAGE>

Contractor. Contractor is directed to do so pursuant to Section 3.5(b)(i) of
this Agreement.

1.3 COVERED BENEFITS are health care services and benefits which the Member is
entitled to receive, provided by and through Health Plan, under its commercial,
Medicare Risk, Medi-Cal managed care, and other plans, and under employers'
self-funded plans, as set forth in the applicable Membership Agreement.

1.4 COVERED SERVICES are those Services rendered by Contractor to Members that
are (a) Covered Benefits and are (b) Authorized Services or Approved Emergency
Claims, as defined in Section 2.3.

1.5 DAYS. Any reference to "days" in this Agreement shall mean calendar days,
unless otherwise noted.

1.6 EMERGENCY SERVICES are those Services necessary to address a medical
condition manifesting itself by acute symptoms of sufficient severity (including
severe pain) such that the absence of immediate medical attention could
reasonably be expected to result in: (a) serious jeopardy to the Member's
health; (b) serious impairment to bodily functions; or (c) serious dysfunction
of any bodily organ or part. Coverage for Emergency Services is subject to the
notification and approval requirements, as set forth in Section 2.3, and the
applicable Membership Agreement. Non-emergency Services are Services that are
not Emergency Services.

1.7 MEMBER refers to a covered individual and his or her eligible family
dependents entitled to health care services under a Membership Agreement with
Health Plan, or with health plans in other geographic regions that are a part of
the Kaiser Permanente Medical Care Program. There are four categories of
Members:

    (a) Medicare Risk Members are Members enrolled under a Medicare Risk
contract (pursuant to Section 1876 of the Social Security Act) between Health
Plan and the Health Care Financing Administration ("HCFA") and;

    (b) Regular Medicare Members are Members entitled to coverage under Part A
only or Part B only or Parts A and B of Medicare but (i) not enrolled under a
Medicare Risk contract between Health Plan and HCFA and (ii) not required to
elect or have not elected their employer's group health plan as primary coverage
and;

    (c) Medi-Cal Members are Members enrolled in Health Plan under a prepaid
Medi-Cal program contract between Health Plan and the State of California or
between Health Plan and an organization under contract to the State of
California (together "Health Plan Medi-Cal Contracts") and;

    (d) Commercial Members are Members who are not Medicare Risk, Regular
Medicare or Medi-Cal Members.

1.8 MEMBERSHIP AGREEMENT refers to the Health Plan Medical and Hospital Services
Agreement, as amended from time to time, under which covered individuals and

                                     Page 2
<PAGE>

their covered dependents are entitled to receive services. Membership Agreement
also refers to other agreements under which Health Plan has agreed to provide or
arrange health care services to covered individuals and their covered
dependents, including, but not limited to employers' self-insured plan
arrangements and Health Plan Medi-Cal Contracts. Membership Agreement includes
the Evidence of Coverage issued to a Member, as amended from time to time.

1.9 SERVICES refers to those professionals services and supplies, of the type
listed in Exhibit 1, attached hereto and incorporated herein, that ROMG is
licensed to provide and does customarily provide in all applicable treatment
settings, including all consults, studies and procedures that are ordinary and
necessary for the diagnosis and treatment of Members, as more fully described
herein. The Services shall include certain facilities, equipment and all
administrative services to be provided by USCC in connection with the
professional services to be provided pursuant to this Agreement.

2.0 SERVICE OBLIGATIONS

2.1 SERVICES TO BE PROVIDED. Contractor shall during normal business hours and
through licensed physicians and other health care practitioners, provide to
Members Services that (i) are Authorized or (ii) are Emergency Services.
Contractor will provide Services through physicians and other health care
professionals that are listed on Exhibit 1 and that are credentialed as set
forth in Section 7.3. Contractor shall notify TPMG of any change to the
physicians and other health care professionals listed on Exhibit I; provided,
however, all such physicians and other health care practitioners must be
credentialed as set forth in Section 7.3 before providing Services to Members.
Contractor shall provide Services at the facility location(s) set forth in
Exhibit 1. Contractor shall be available to provide to members prompt urgent
Services that are Authorized, on a same-day basis when medically indicated. If
current medically acceptable diagnostic laboratory or x-ray results are provided
by KP to Contractor in connection with Contractor's rendering of Services,
Contractor will not repeat them. Contractor shall make Services available to
Members in the same manner, in accordance with the same standards, and with the
same availability, as to its other patients. Contractor shall ensure that
Services provided under this Agreement are readily available and accessible,
provided in a prompt and efficient manner without delays in terms of wait times
or scheduling of appointments, and consistent with professionally recognized
standards of practice and KP practice guidelines. ROMG physicians shall
prescribe drugs and medications in accord with KP's drug formulary policy. As
applicable to the scope of care covered by this Agreement, Contractor shall be
available to provide Services that are Emergency Services twenty-four (24) hours
per day, seven (7) days per week. Contractor warrants that any and all equipment
necessary or appropriate for use in connection with providing Services hereunder
shall be registered, surveyed, and calibrated in accord with applicable federal
and state laws and regulations pertaining to such equipment. Upon reasonable
request, Contractor will allow TPMG and its authorized agents and
representatives access to any and all records pertaining to the maintenance and
safety of such equipment. Contractor shall promptly notify TPMG of the
malfunction of any equipment used in providing Services hereunder.

                                     Page 3
<PAGE>

2.2 SUBSTITUTE PHYSICIANS AND SUBCONTRACTS. Contractor will arrange for coverage
by one or more substitute physicians when ROMG'S physicians are temporarily
unavailable. Services provided by such substitute physicians will be rendered in
strict accord with the terms of this Agreement. TPMG will render payment to
Contractor for Services provided by such substitute physicians in accord with
Article 3. Procurement of and payment to any substitute physician is
Contractor's sole responsibility. If Contractor arranges for the provision of
some Services from other health care providers, Contractor shall obtain written
arrangements with such providers, specifying that the providers shall (i) seek
payment only from Contractor, not from TPMG, and not from the Member as set
forth in Section 3.4, (ii) maintain and disclose records and other information
as set forth in Article 5, (iii) abide by the nondiscrimination and
confidentiality of information provisions set forth in Section 7.2 and 5.6,
respectively, (iv) maintain insurance as set forth in Section 6.1, (v) comply
with laws and credentialing requirements as set forth in Article 7, (vi) comply
with the arbitration provisions (with respect to KP and Members) set forth in
Article 8, and (vii) comply with any other applicable provisions of this
Agreement. Upon termination of this Agreement, such subcontracts shall terminate
with respect to Covered Services provided to Members. Upon request, Contractor
shall make such written agreements available to the California Department of
Health Services ("DHS"), Medi-Cal plans with which Health Plan contracts for the
provision of services to Medi-Cal Members ("Medi-Cal Plans"), other entities
where required by law or by contract, and KP, for review and approval.

2.3 APPROVAL OF EMERGENCY SERVICES CLAIMS. Subject to applicable law, Contractor
shall notify KP of any Emergency Services provided to a Member immediately upon
stabilization of the Member's emergency medical condition. KP shall review
Emergency Services claims. If approved, such claim shall be deemed an "Approved
Emergency Claim". Compensation for Emergency Services provided to Members is
payable to Contractor only if the Emergency Services are determined by KP to be
Covered Benefits and there is an Approved Emergency Claim.

2.4 PRIOR AUTHORIZATION OF NON-EMERGENCY SERVICES. Upon referral by a TPMG
Physician and presentation of a KP written authorization form ("Authorization"),
Contractor shall provide Non-emergency Services to Members. If an Authorization
has not been presented, Contractor shall obtain an Authorization before
Contractor provides any Non-emergency Services to a Member. The Authorization
shall be signed by a TPMG physician, or designee. The Authorization will outline
the scope of Services to be provided. Any Services, including tests, procedures,
and consulting services, not specifically described in the scope of Services on
the Authorization, must be approved in advance by a TPMG physician, or designee.

2.5 UTILIZATION MANAGEMENT. Contractor hereby acknowledges that KP conducts
utilization management and review ("UM") programs regarding the care provided to
Members. The pertinent policies and procedures of KP's UM programs are set forth
in Exhibit 2, attached hereto and incorporated herein. Contractor shall
participate, cooperate and comply with the provisions of KP's UM programs,
including prospective, concurrent and retrospective review by KP's UM committees
and staff.

                                     Page 4
<PAGE>

Upon reasonable notification, Contractor shall allow KP UM personnel, or their
designees, physical and telephone access to review, observe and monitor Member
care and Contractor's performance of its obligations under this Agreement.

2.6 QUALITY ASSESSMENT AND IMPROVEMENT.

    (a) Contractor hereby acknowledges that the quality and improvement programs
of KP require KP to monitor the quality assessment and improvement activities of
contracting providers. Contractor agrees (i) to participate in KP's quality
assessment and improvement programs, including review by KP's quality assurance
and improvement committees and staff, (ii) to abide by KP's quality assessment
and improvement plan as set forth in Exhibit 2, and (iii) to cooperate with KP
to objectively monitor and evaluate the quality of services provided at
Contractor's facility(s), including, but not limited to, the availability,
accessibility, acceptability, and continuity of such care.

    (b) Contractor shall investigate and respond immediately to all quality
issues, and shall work with KP to resolve any accessibility and other quality
issues related to Services provided to Members. Contractor and Manager will
remedy, as soon as reasonably possible, any condition related to patient care
which as been determined by KP, or any governmental or accrediting agency to be
unsatisfactory. The parties shall work together to continuously assess and
improve the quality and accessibility of care provided to Members and to resolve
problems related to the provision of Services.

    (c) Contractor will provide information for use in quality assessment and
improvement activities conducted by KP, including but not limited to provider
and patient specific information. KP will protect the confidentiality of such
information to the extent required under state and federal law. Upon request,
Contractor shall provide data, information and records (i) which Health Plan
must review for accreditation by the National Commission for Quality Assurance
("NCQA") and for credentialing activities that meet NCQA standards, and (ii)
which is required by other accrediting organizations. Contractor will provide KP
access to all patient care protocols, policies and procedures, and any
modifications, upon request.

    (d) Contractor shall permit, at reasonable times with reasonable notice,
inspection of its facility(s) by NCQA and other accrediting organizations.
Contractor shall permit KP and Government Officials (defined in Section 5.4) to
conduct periodic site evaluations of Contractor's facility(s). Contractor will
participate in all utilization management, quality assessment and improvement,
credentialing, recredentialing, peer review and any other activities required by
KP and applicable regulatory and accrediting agencies.

    (e) Notwithstanding anything contained herein to the contrary, KP's duties
and obligations hereunder do not relieve Contractor of any duty of care to
provide Members with Services in accord with the appropriate standard of care.

                                     Page 5
<PAGE>

2.7 NOTIFICATION OF CHANGES. Contractor will notify TPMG immediately of any
changes in operation or in physicians or other health care providers providing
Services hereunder, emergency conditions or factors that my significantly affect
Services provided to any Member. Contractor shall also notify TPMG promptly of
any material change in ownership, control, legal status, name, location of
facilities, tax identification number, Medicare or Medi-Cal number. Any material
change of ownership or control of Contractor is subject to the requirements of
Section 9.5.

3.0 BILLING AND PAYMENT

3.1 PREPARATION OF BUDGET AND ANNUAL RECONCILIATION.

         (a) With respect to each facility covered hereunder, the parties shall
do the following:

         (b) CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

         (c) CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

         (d) CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

         (e) CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

                                     Page 6
<PAGE>

3.2 PAYMENT OF COMPENSATION. Contractor shall accept such amounts paid by TPMG
(as provided in this Section 3 and Exhibit 3) and any Copayments Contractor it
directed to collect, as payment in full. Emergency Services must be approved
pursuant to Section 2.3 and other Services must be Authorized Pursuant to
Section 2.4 as a condition for payment. Payment for Covered Services shall be
made within thirty (30) calendar days of receipt of a properly submitted invoice
as described in Exhibit 4.

3.3 ADJUSTMENTS TO PAYMENT RATE. KP may review and audit any and all invoices,
prior to or subsequent to payment, to ensure that coding complies with commonly
accepted standards adopted by KP, that billed charges are customary and
reasonable, that services rendered are appropriate and medically necessary, and
that payment is in accord with this Agreement. If KP determines that services
rendered are inappropriate or not medically necessary, coding practices do not
comply with KP standards, billed charges are not reasonable and customary, or
payment is not in accord with the terms of this Agreement, KP reserves the right
to deny, reduce or otherwise adjust payment to Contractor. If an audit conducted
by KP shows that Contractor owes monies to KP, TPMG will notify Contractor, and
Contractor shall refund such overpayment to TPMG within thirty (30) working
days. If not paid within said thirty (30) day period, TPMG may offset future
payments to Contractor by such overpayment.

3.4 BILLING OTHER SOURCES.

         (a) Contractor shall look solely to TPMG (or another responsible payer)
for compensation for Covered Services rendered to Members under this Agreement,
and, except as expressly provided in this Section, Contractor agrees that in no
event, including but not limited to non-payment by TPMG, insolvency of KP or
breach of this Agreement, shall Contractor bill, charge, collect a deposit from,
seek compensation, remuneration or reimbursement from, of have any recourse
against any Member, a person acting on the Member's behalf, DHS or Medi-Cal
Plans, for Services provided pursuant to this Agreement. Contractor shall not
seek payment from Members for amounts denied by KP because billed charges were
not customary or reasonable, because clinical data was not submitted promptly,
or because Contractor did not submit the invoice in accordance with the time
limits or other billing procedures set forth in Section 3.3, or in accordance
with commonly accepted standard coding practices adopted by KP.

         (b) Contractor may assert claims for compensation from individuals or
payors other than TPMG, in the following circumstances,

         (i) Copayments. The right to collect and retain Copayments applicable
         to Contractor's provision of Services to Members is a right solely of
         Health Plan. Health Plan may require such Copayments to be collected
         and retained by Contractor, and may require such collection at the time
         Services are provided. If Contractor is directed to collect such
         Copayments, compensation payable under this Agreement shall be reduced
         by such Copayments. In the event Contractor is required to collect such
         Copayments, Contractor must show a good faith effort to make said
         collections. If Contractor shows proof of billing Members at

                                     Page 7
<PAGE>

         least 3 times over the 60-days following the date of service, KP will
         reimburse or credit Contractor for such Copayments. Contractor must
         provide KP such proof in an agreed upon written format and any
         information necessary for KP to continue the aforementioned collection
         efforts.

         (ii) Other Coverage. If a Member is entitled to benefits under another
         carrier's health benefits coverage, and such coverage is primary,
         Contractor will look first to the primary carrier for compensation for
         Services and then to TPMG, in accord with Section 3.5 of this
         Agreement.

         (iii) Services After Coverage Exhausted or Disallowed. If a Member
         elects to continue receiving Services from Contractor after such
         Member's benefits under his or her Membership Agreement have been
         exhausted, or Health Plan determines in its sole discretion that such
         Services are not Covered Services, then Contractor shall seek
         compensation solely from such Member (or such Member's representative)
         for such Services, and TPMG shall not be liable to Contractor for any
         charge in connection with such Services rendered by Contractor to such
         Member.

         (iv) No Benefit. If Contractor provides Services to a Member for which
         the Member has no Covered Benefit or if Contractor provides Services to
         any non-Member, then Contractor shall look solely to the Member or
         non-Member (or such person's representative) for compensation, and TPMG
         shall not be liable to Contractor for any charge in connection with
         such Services rendered by Contractor to such Member or non-Member.

         (v) Regular Medicare. If Contractor provides Services to a Regular
         Medicare Member, then Contractor shall submit the bill directly to
         HCFA. A copy of the Explanation of Medicare Benefits shall be provided
         to KP upon request and 100% of the amount paid by Medicare shall be
         credited to the Actual Cost Offset. Contractor shall not assert any
         claim for compensation against Regular Medicare Members for
         Medicare-covered Services, and shall not assert any claim for
         compensation, other than for the applicable Medicare coinsurance and
         deductible amounts, against TPMG for Medicare-covered Services provided
         to such Members. Contractor agrees to accept, as payment in full for
         Services provided to Regular Medicare Members, (A) the applicable
         Medicare payment, (B) the amounts paid by TPMG for the applicable
         Medicare coinsurance and deductible, and (C) the amount, if any, for
         Services that are Covered Benefits but are not Covered by Medicare.

         (c) Contractor shall not bill or collect from a Member any charges in
connection with Services, even though such Services are not Covered Services,
unless Contractor has obtained a written statement in a form acceptable to KP,
signed by the

                                     Page 8
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Member or the person responsible for paying for Services rendered to the Member,
acknowledging that the Member or such person is responsible for making such
payments.

         (d) Contractor understands and agrees that surcharges against Members
are prohibited and Health Plan will take appropriate action if surcharges are
imposed. A surcharge is an additional fee which is charged to a Member for a
Service but which is not approved by the Commissioner of Corporations or
provided for under the applicable Membership Agreement.

         (e) Contractor shall hold harmless the State of California, Medi-Cal
Plans and Members in the event that TPMG cannot or will not pay for Services
performed by Contractor pursuant to this Agreement.

3.5 COORDINATION OF BENEFITS/THIRD PARTY LIENS/SUBROGATION RIGHTS.

         (a) When Health Plan is primary under applicable coordination of
benefits ("COB") rules, TPMG shall pay to Contractor, as set forth in this
Agreement the amount due for Covered Services rendered to Members.

         (b) When Health Plan is secondary under applicable COB rules, or
another payor is primary to Health Plan, then Contractor shall bill such other
payor and the amounts collected from other payors for Covered Services provided
to Members, shall be applied to the "Actual Cost Offset" category of the annual
budget reconciliation for the applicable Budget Year for the relevant facility.

         (c) Contractor shall cooperate with and abide by Health Plan's COB
program. Such cooperation shall include, without limitation the following: (i)
Contractor shall screen each Member receiving Services to determine if the
Member has Medicare coverage, or other health benefits, such as workers'
compensation coverage or coverage through the Member's spouse, and shall provide
such other coverage information to Health Plan upon request. (ii) If, following
payment by TPMG for Services, Contractor discovers that Contractor is entitled
to payment or receives payment for the same services from another payer that is
primary to Health Plan, then Contractor shall notify TPMG and promptly refund to
TPMG any amount paid by TPMG in excess of the amount set forth in subsection (b)
above and such amount shall be included in the reconciliation referred to in
Section 3.1(c) for the applicable Budget Year for the relevant facility.

         (d) Health Plan, not Contractor, shall retain all rights to seek and
recover, including all rights of reimbursement, lien or subrogation, any and all
payment from Members or third parties for Covered Services provided by
Contractor to a Member hereunder, as a result of an injury or illness caused or
alleged to be caused by a third party. Contractor shall cooperate with Health
Plan or its designee in identifying such claim and in providing such information
promptly to Health Plan.

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<PAGE>

4.0 TERM AND TERMINATION

4.1 TERM. This Agreement will begin on the Effective Date, will continue in
effect for three (3) years, and will thereafter automatically renew for
successive three (3) year terms, unless terminated in accord with Sections 4.2,
4.3 or 4.4 below. Any such renewal shall apply to all of Contractor's facilities
covered under the Agreement at the time of renewal. Further, if either party
desires to allow the Agreement to expire at the end of the initial or any
subsequent term, the party shall give written notice of such intent to the other
party at least One Hundred Eighty (180) days prior to the end of that term.

4.2 CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

4.3 IMMEDIATE TERMINATION.

         (a) Contractor shall immediately notify TPMG and TPMG may immediately
suspend this Agreement in the event there is a material adverse change in any
insurance coverage required hereunder of either USCC or ROMG other than a
cancellation, non-renewal, expiration or failure to obtain coverage. If
Contractor does not provide adequate insurance coverage within thirty (30) days
of the material adverse change, TPMG may terminate this Agreement immediately.
Contractor shall immediately notify TPMG and this Agreement will terminate
without further action of the parties if any such insurance coverage is
canceled, not renewed or expires, or if Contractor fails to obtain any insurance
coverage as required by this Agreement. If this Agreement terminates without
further action of the parties, the effective date of termination shall be the
date of the occurrence of such event or, at TPMG's option, such other date
determined by TPMG in its sole discretion.

         (b) Contractor shall immediately notify TPMG and TPMG may immediately
suspend this Agreement if any license(s), Medicare or Medi-Cal certification, or
credentialing status required of Contractor hereunder is suspended or limited.
If any such license(s), certification or credentialing status is not fully
reinstated within thirty (30) days of such suspension of limitation, TPMG may
immediately terminate this Agreement. Contractor shall immediately notify TPMG
and this Agreement will terminate without further action of the parties if any
such license, Medicare or Medi-Cal certification or credentialing status, is
revoked, not renewed or expires, if such licensure or certification is not
obtained as required by this Agreement, or if Contractor is excluded from
participation in the Medicare or Medi-Cal programs. If this Agreement terminates
without further action of the parties, the effective date of termination shall
be the date of the occurrence of such event or, at TPMG's option, such other
date determined by TPMG in its sole discretion.

         (c) Contractor shall notify TPMG and TPMG may terminate this Agreement
immediately upon written notice to Contractor if either USCC or ROMG files a
petition in or for bankruptcy, reorganization or an arrangement with creditors;
makes a general assignment for the benefit of creditors; is adjudged bankrupt;
is unable to pay debts as

                                    Page 10
<PAGE>

they become due; has a trustee, receiver or other custodian appointed on its
behalf or has a case or proceeding commenced against it under any bankruptcy or
insolvency law.

         (d) Contractor shall notify TPMG and TPMG may terminate this Agreement
immediately upon written notice to Contractor if Services are provided to any
Members under this Agreement through a physician and: (i) such physician's
license to practice medicine in any state is suspended, revoked, expired or not
renewed; (ii) such physician's staff privileges at any hospital is revoked,
suspended, not renewed or significantly (in the judgment of TPMG) reduced for
any medical disciplinary cause or reason; (iii) such physician is not or ceases
to be covered by professional liability coverage as required under this
Agreement; (iv) such physician is criminally charged with any act involving
moral turpitude; (v) the credentialing Information provided to TPMG with respect
to such physician was materially false; or (vi) such physician no longer
satisfies the credentialing standards of TPMG.

         (e) KP may terminate this Agreement immediately upon written notice to
Contractor if (i) such Contractor rejects a Legally Required Modification
pursuant to Section 9.9, or (ii) there is any change to the composition of
physicians and other health care practitioners providing Services on behalf of
Contractor and such Providers have not been credentialed by TPMG.

         (f) Any suspension or termination by TPMG under Section 4.3(a) (b),
(c), or (d) may, at TPMG's option, be a suspension or termination of this
Agreement in whole or in part. Any partial suspension or termination shall be
with respect to each facility identified in writing by TPMG to Contractor.
Further, the parties agree that for such suspension or termination in regard to
credentialing or under subsection (d), for a specified physician, may be
remedied by Contractor by removing such physician from caring for Members.
Contractor must as part of such removal provide for continued access to care for
Members.

4.4 OTHER RIGHTS OF TERMINATION.

         (a) CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

         (b) Either party may terminate this Agreement for a material breach by
the other of any provision of this Agreement other than for a breach
specifically provided for in 4.3 above, if any such breach is not cured within
thirty (30) days after the non-breaching gives written notice of such breach to
the other. Any such termination shall be effective as of the date of expiration
of the cure period.

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4.5 TERMINATION AS TO MEDICARE RISK MEMBERS. In the event that the Medicare
contract between HCFA and Health Plan is terminated or nonrenewed, this
Agreement will be terminated as to Medicare-Risk Members unless HCFA and Health
Plan agree to the contrary. Such termination as to Medicare Risk Members shall
be accomplished by delivery of written notice by TPMG to Contractor of the date
upon which said termination will become effective.

4.6 EFFECT OF TERMINATION AND SURVIVAL

         (a) Upon termination of this Agreement, Contractor shall continue to
provide Services to Members under the care of Contractor at the time of
termination, until the Services being rendered are completed unless TPMG makes
reasonable and medically appropriate provisions for the assumption of such
Services by a new contractor or by TPMG. The terms and conditions of this
Agreement will continue to apply to Services provided to each such Member until
completion or until transfer to a new contractor or to TPMG. Contractor shall
act in such a manner as to facilitate TPMG's or any new contractor's assumption
of services.

         (b) In the event of TPMG's insolvency or other cessation of operations,
Contractor will continue to provide Services to Members under the care of ROMG
at the time of insolvency or cessation of operations through the period for
which premiums have been paid.

         (c) Provisions of this Agreement including, but not limited to, Section
2.5 (Utilization Management), Section 2.6 (Quality Assessment and Improvement),
Article 5 (Records and Confidentiality), Article 6 (Insurance and
Responsibility) and Article 8 (Dispute Resolution, Complaints and Inquiries)
that are not fully performed or are not capable of being fully performed as of
the date of termination will survive termination of this Agreement.

         (d) Contractor further agrees that Section 3.4 (a) and Section 4.6 (b)
shall (i) survive the termination of this Agreement regardless of the cause
giving rise to termination, (ii) be construed to be for the benefit of the
Members, and (iii) supersede any oral or written contrary agreement now existing
or hereafter entered into by the parties. Any modification to this Section 4.6
(d) shall become effective only after proper state and federal regulatory
authorities have received written notification of the proposed changed.

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<PAGE>

4.7 FAIR HEARING. Notwithstanding time periods for termination set forth in
Sections 4.3 and 4.4 above, in all cases in which TPMG terminates this Agreement
and any ROMG physician providing Services hereunder is entitled to a fair
hearing under TPMG's applicable Notification and Hearing Procedures, as amended
from time to time ("Procedures"), the termination will be final thirty (30) days
from notice of the right to request a hearing, unless such physician requests a
hearing within such thirty (30) day period. If such a hearing is requested, this
Agreement will continue in effect until a decision is rendered, provided,
however, (a) this Agreement may be terminated for other reasons or without
cause, and (b) upon the request of TPMG, Contractor shall not thereafter render
Services to Members until a decision is rendered.

5.0 RECORDS AND CONFIDENTIALITY

5.1 MAINTENANCE OF RECORDS. Contractor shall maintain books, charts, documents,
papers, reports and records (including, but not limited to, financial,
accounting, administrative, and patient medical records and prescription files)
related to Services provided hereunder to Members, to the cost thereof, to
payments received from Members or others on their behalf and to the financial
condition of Contractor ("Records"). Records also include those that are
customarily maintained by Contractor for purposes of verifying claims
information and reviewing appropriate utilization of Services. Contractor shall
maintain Records in accord with applicable state and federal requirements,
including privacy and confidentiality requirements, and in a form maintained in
accordance with the general standards applicable to that book or record keeping.
The Member's medical record shall reflect whether or not the Member has executed
an advance directive. Contractor shall be fully bound by the requirements in
Title 42 of the Code of Federal Regulations Section 2.1 et seq., relating to the
maintenance and disclosure of Member Records received or acquired by federally
assisted alcohol or drug programs. Contractor shall preserve Records for the
longer of (i) seven (7) years after termination of this Agreement, (ii) one (1)
year after the Member reaches the age of majority, if the Member is a minor, and
(iii) the period of time required by state and federal law and Health Plan
Medi-Cal Contracts, including the period required by the Knox Keene Act and
regulations, and by the Medicare and Medi-Cal programs.

5.2 ACCESS TO AND COPIES OF RECORDS. KP and its authorized agents shall have
access to and may inspect the Records, subject to reasonable request and
notification requirements. Contractor shall transmit Record information by
written telecommunication (i.e., facsimile) to KP as requested. Contractor
shall, subject to any legal requirements regarding confidentiality provide
access to Records and other information as required by NCQA and other
accrediting organizations. Contractor shall provide copies of Records to KP upon
request and at no separate charge.

5.3 COPIES OF CLINICAL INFORMATION. For all Members receiving Services,
Contractor will promptly forward copies of initial consultation reports upon
completion of consult, and summaries of patient care or patient results upon
completion of patient care or discharge, to the physician prescribing or
authorizing the Service. Contractor

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<PAGE>

shall provide copies of such clinical information to the prescribing or
authorizing physician upon request and at no separate charge.

5.4 DISCLOSURE TO GOVERNMENT OFFICIALS. Contractor shall comply with all
provisions of the Omnibus Reconciliation Act of 1980 regarding access to books,
documents, and records. Without limiting the foregoing, Contractor shall
maintain, provide access to, and provide copies of Records, this Agreement and
other information to the Commissioner of Corporations of the State of
California, DHS, Medi-Cal Plans, the U.S. Department of Justice, the Secretary
of the U.S. Department of Health and Human Services, the U.S. Comptroller
General, HFCA, Peer Review Organizations, their designees, and such other
officials entitled by law or under Health Plan Medi-Cal Contracts (collectively,
"Government Officials") as may be necessary for compliance by KP with the
provisions of all state and federal laws and contractual requirements governing
KP, including, but not limited to, the Knox-Keene Health Care Service Plan Act
of 1975, as amended, and the regulations thereunder, and the Medicare and
Medi-Cal programs. Such Records shall be available at all reasonable times at
Contractor's place of business or at some other mutually agreeable location in
California.

5.5 GOVERNMENT-REQUIRED INFORMATION. Contractor shall supply KP with periodic
reports and information pertaining to Services provided to Members by Contractor
or its subcontracted health care providers, on such forms and within such times
as requested by KP, and which will enable KP to meet all federal and state and
contractual reporting requirements.

5.6 CONFIDENTIALITY OF INFORMATION.

         (a) Contractor and KP shall keep in strictest confidence and in
compliance with all applicable state and federal law: (i) this Agreement, (ii)
any patient information, (iii) information concerning any matter relating to the
business of the other, including, but not limited to, the other's employees,
products, services, membership, prices, operations, business systems, planning
and finance, practice guidelines, and formularies, (iv) materials, data, records
or other information obtained from the other during the course of or pursuant to
this Agreement, and (v) any information learned by Contractor or KP while
performing obligations under this Agreement, which if provided by the other,
would be required to be kept confidential. Neither Contractor nor KP shall
disclose such information unless authorized by the other, except as provided in
subsection (b) below.

         (b) The prohibitions on disclosure set forth in Subsection (a) above do
not apply to information (i) required by law to be disclosed or to be provided
to Government Officials or governmental agencies, (ii) required by the Joint
Commission on Accreditation of Heath Care Organizations ("JCAHO") NCQA, or other
accreditation organizations, or (iii) disclosed in legal or government
administrative proceedings.

         (c) Notwithstanding any other provision of this Agreement, names of
Members receiving public social services hereunder are confidential and are to
be protected from unauthorized disclosure in accordance with Title 42, Code of
Federal Regulations, Section 431.300 et. seq. and Section 14100.2 of the Welfare
and Institutions

                                    Page 14
<PAGE>

Code and regulations adopted thereunder. For the purpose of this Agreement, all
information, records, data, and data elements collected and maintained for the
operation of the Agreement and pertaining to Members shall be protected by
Contractor from unauthorized disclosure.

         With respect to any identifiable information concerning a Medi-Cal
Member that is obtained by Contractor, Contractor (i) will not use any such
information for any purpose other than carrying out the express terms of this
Agreement, (ii) will promptly transmit to DHS and the applicable Medi-Cal Plan
all requests for disclosure of such information, (iii) will not disclose except
as otherwise specifically permitted by this Agreement, any such information to
any party other than DHS and the applicable Medi-Cal Plan, without prior written
authorization specifying that the information is releasable under Title 42, CFR
Section 431.300 et. seq., Section 14100.2, Welfare and Institutions Code, and
regulations adopted thereunder, and (iv) will, at the expiration or termination
of this Agreement, return all such information to DHS and the applicable
Medi-Cal Plan or maintain such information according to written procedures sent
to Health Plan by DHS and the applicable Medi-Cal Plan for this purpose.

5.7 USE OF NAME. Each party reserves to itself the right to, and the control of
the use of, its names, symbols, trademarks and service marks, presently existing
or hereafter established, and, no party shall use the other's names, symbols,
trademarks, or service marks in any advertising or promotional communication of
any type or otherwise without the prior written consent of the other
organization. Notwithstanding the above, KP may communicate to Members USCC and
ROMG's name(s), address(es), telephone number(s) and physicians.

5.8 PUBLICITY. In the interest of presenting accurate information to the general
public and Members, and maintaining good public relations, the parties will
consult with each other regarding any issue relating to this Agreement or to a
Member obtaining Services hereunder that gives rise to media interest or public
relations concern and will cooperate in developing any statements or press
releases in connection with any such issue. Further the terms of this Agreement
shall not be disclosed by any party without the express written consent of other
parties.

6.0 INSURANCE AND RESPONSIBILITY

6.1 INSURANCE.

         (a) Contractor shall maintain the following insurance covering itself
and each physician and other healthcare professional through whom Services are
provided hereunder: (i) policies of commercial general liability and property
damage insurance with limits of liability not less than one million dollars
($1,000,000) per occurrence and three million dollars ($3,000,000) annual
aggregate, (ii) a policy of professional liability insurance with limits of
liability not less than one million dollars ($1,000,000) per occurrence and
three million dollars ($3,000,000) annual aggregate, (iii) fidelity coverage,
including the bonding of employees, in a reasonable amount, but no less than
$500,000 covering USCC administrative responsibilities hereunder, and (iv) such
other

                                    Page 15
<PAGE>

insurance or self insurance as shall be necessary to insure it against any claim
or claims for damages arising under this Agreement, including claims arising by
reason of personal injury or death in connection with the performance of any
Service, or use of any property or facility pursuant to this Agreement. Such
insurance coverage shall apply to all facilities of Contractor covered under
this Agreement.

         (b) All insurance required under this Section shall be obtained from a
company(ies) that is duly licensed to do business in the State of California and
that either (i) has a Best's rating of at least A or has a comparable rating
from another rating company or (ii) is acceptable to TPMG. Such insurance
coverage must not be canceled, terminated, nonrenewed, or modified or must not
expire without at least thirty (30) days' prior written notice to TPMG.
Contractor shall notify TPMG at the time of any change in insurance carrier,
limits or deductibles. Contractor shall provide certificates of insurance
evidencing such coverage to TPMG upon execution of this Agreement in a form
acceptable to TPMG, and from time to time thereafter upon request. Both parties
to this Agreement will maintain in full force and effect appropriate automobile
coverage, and workers' compensation protection and unemployment insurance to the
extent required by law.

         (c) If Contractor obtains one or more claims-made insurance policies to
fulfill its obligations under this Section, Contractor will (i) maintain
coverage with the same company during the term of this Agreement and for at
least ten (10) years following termination of this Agreement, or (ii) purchase
or provide coverage that assures protection against claims based on acts or
omissions that occur during the period of this Agreement but which are asserted
after the claims made insurance policy has expired.

6.2 RESPONSIBILITY

         (a) USCC and ROMG shall jointly and severally assume, for each Member
to whom Services are rendered by or on behalf of Contractor, full responsibility
for the manner in which Services are rendered. USCC and ROMG shall jointly and
severally assume full responsibility for all losses or expenses (including costs
and reasonable attorneys' fees) resulting from liability imposed by law upon
either because of injury or death to any person or on account of damages to
property, including loss of use thereof, arising out of or in connection with
this Agreement and due or claimed to be due to the negligence or wrongful
conduct of either USCC or ROMG and their respective Providers (as defined in
Section 7.3 (a)), contractors, officers, directors, agents, or employees.

         (b) TPMG shall assume full responsibility for all loss or expenses
(including costs and reasonable attorneys' fees) resulting from liability
imposed by law upon TPMG because of injury or death to any person or on account
of damages to property, including loss of use thereof, arising out of or in
connection with this Agreement and due or claimed to be due to the negligence or
wrongful conduct of TPMG, its officers, directors, agents or employees.

                                    Page 16
<PAGE>

7.0 LEGAL REQUIREMENTS AND CREDENTIALS

7.1 COMPLIANCE WITH LAWS

         (a) USCC and ROMG each represents and warrants that it is currently,
and for the duration of this Agreement shall remain in compliance with all
applicable local, State and federal laws and regulations, including, but not
limited to, those (i) regarding licensure and certification, (ii) necessary for
participation in the Medicare and Medi-Cal programs, including the antifraud and
abuse laws and regulations and the patient self-determination amendments of the
Omnibus Budget Reconciliation Act of 1990, (iii) regarding advance directives,
(iv) regulating the operations and safety of facilities, and (v) regarding
federal and state Occupational Health and Safety Administration (OSHA)
standards.

         (b) Neither USCC nor ROMG shall employ or contract with directly or
indirectly entities or individuals excluded from participation in Medicare or
Medicaid under Sections 1128 or 1128A of the Social Security Act, for the
provision of health care services, utilization review, medical social work or
administrative services in respect to Members.

         (c) KP shall ensure, through the quality assessment and improvement
programs described in Section 2.6 of this Agreement, that any Services performed
by ROMG physicians under this Agreement at a KFH facility are performed in a
safe and effective manner as required by 42 Code of Federal Regulations Section
482.12(e), and KP shall retain administrative and professional responsibility
for all Services rendered by Contractor to patients of KFH, as required by Title
22 California Code of Regulations, Section 70713. The foregoing shall not modify
the allocation of liability or indemnification obligations between the parties
as set forth in the Agreement or as otherwise provided by law.

7.2 NONDISCRIMINATION.

         (a) Contractor shall not discriminate against Members on the basis of
race, color, creed, religion, sex, marital status, ancestry, sexual orientation,
national origin, health status, age, physical or mental handicap, veteran's
status, income, source of payment, status as a Member of Health Plan, or filing
a complaint as a Health Plan Member. Contractor shall not condition treatment or
otherwise discriminate on the basis of whether a Member has executed an advance
directive. Contractor shall comply with Title VI of the Civil Rights Act of
1964, the Age Discrimination Act of 1975 and the Rehabilitation Act of 1973.
Contractor shall provide reasonable access and accommodation to persons with
disabilities to the extent required of a health services provider under the
American with Disabilities Act or any applicable state law.

         (b) Contractor recognizes that as a governmental contractor, KP is
subject to various federal laws, executive orders and regulations regarding
equal opportunity and affirmative action which may also be applicable to
subcontractors. Contractor, therefore, agrees that any and all applicable equal
opportunity and affirmative action clauses shall

                                    Page 17
<PAGE>

be incorporated herein as required by federal laws, executive orders, and
regulations, including but not limited to the following:

         (i) The nondiscrimination and affirmative action clauses contained in
         Executive Order 11246, as amended; the Rehabilitation Act of 1973, as
         amended; the Vietnam Era Veterans Readjustment Assistance Act of 1974,
         as amended; and the implementing rules and regulations prescribed by
         the Secretary of Labor in Title 41, Part 60 of the Code of Federal
         Regulations.

         (ii)The utilization of small and minority business concerns clauses
         contained in: the Small Business Act, as amended; Executive Order
         11625, and the Federal Acquisition Regulation (FAR) at 48 CFR Chapter
         1, Part 19, Subchapter D, and Part 52, Subchapter H.

         (iii) The utilization of labor surplus area concerns clauses contained
         in: the Small Business Act, as amended; Executive Order 12073; 20 CFR
         Part 654, Subpart A; and the Federal Acquisition Regulation (FAR) at 48
         CFR Chapter 1, Part 20 of Subchapter D and Part 52 of Subchapter H.

         (c) During the performance of this Agreement, Contractor shall not
unlawfully discriminate, harass, or allow harassment against any employee or
applicant for employment because of race, religion, color, national origin,
ancestry, physical disability, mental disability, medical condition, marital
status, age, sex, or denial of family care leave. Contractor shall insure that
the evaluation and treatment of its employees and applicants for employment are
free of such discrimination and harassment. Contractor shall comply with the
provisions of the Fair Employment and Housing Act (Government Code, Section
12900, et seq.) and the applicable regulations promulgated thereunder
(California Code of Regulations Title 2, Section 7285.0 et seq.). The applicable
regulations of the Fair Employment and Housing Commission implementing
Government Code Section 12990, set forth in Chapter 5 of Division 4 of Title 2
of the California Code of Regulations are incorporated into this Contract by
reference and made a part hereof as if set forth in full. Contractor shall give
written notice of its obligations under this clause to labor organizations with
which it has a collective bargaining or other agreement.

7.3 LICENSURE, CERTIFICATION AND CREDENTIALS.

         (a) ROMG and USCC each represents and warrants that all physicians and
all health care practitioners, including employees, contractors and agents of
either, who provide Services to Members (collectively "Providers"), ROMG and
USCC and each of Contractor's facilities are, and shall be at all times during
the term hereof, properly licensed by the State of California, certified,
qualified and in good standing in accord with all applicable local, state and
federal laws and in accord with all applicable standards and criteria pertaining
to the provision of healthcare services within its facilities. ROMG, USCC and
each facility shall be accredited, if applicable. USCC, ROMG, Contractor's
facilities and Providers shall meet applicable requirements and be

                                    Page 18
<PAGE>

properly certified under the Medicare and Medi-Cal programs, as set forth in
Title XVIII and Title XIX respectively, of the Social Security Act. Providers
shall only provide Services within the scope of their training and experience.
ROMG and USCC each further warrants that each physician through whom it will
provide Services shall (i) maintain a current, unrestricted license to practice
medicine in California, (ii) be certified to participate in the Medicare and
Medi-Cal programs, (iii) be board certified in the specialty set forth in
Exhibit 1, and (iv) maintain, as applicable, full active staff membership at one
or more local hospitals, including all clinical privileges necessary for the
physician to perform required Services at such hospital. Upon request,
Contractor shall provide satisfactory documentary evidence of licensure,
certification, and qualifications of Contractor, Contractor's facilities and
Providers.

         (b) Contractor shall cooperate with TPMG's credentialing process. Prior
to execution of this Agreement, Contractor will provide to TPMG all requested
credentialing information, in such form as reasonably requested by TPMG.
Providers must be credentialed as set forth in this Section 7.3 before providing
Services to Members. Contractor shall also provide all re-credentialing
information requested by TPMG.

         (c) Contractor shall immediately notify TPMG if (i) the licenses,
certifications or clinical privileges of USCC, ROMG or any Provider are revoked,
suspended, restricted, expired or not renewed, (ii) any peer review action,
inquiry or formal corrective action proceeding, or investigation is initiated
against USCC, ROMG or a Provider, (iii) USCC, ROMG or a Provider is the subject
of legal (malpractice) action or governmental action, inquiry or formal
allegation concerning qualifications or ability to perform Services (including
any allegation of malpractice), (iv) there is any formal report submitted to the
Medical Board of California, the Board of Registered Nursing or the National
Practitioner Data Bank of adverse credentialing or peer review action regarding
USCC, ROMG or a Provider, (v) there is any material change in any of the
credentialing information regarding USCC, ROMG or a Provider, (vi) USCC, ROMG or
a Provider is subject to sanctions under the Medicare or Medicaid programs, or
(vii) there is any incident that may affect any license or certification held by
USCC, ROMG or a Provider, or that may materially affect Contractor's performance
of its obligations under this Agreement. Upon request, Contractor shall provide
KP with copies of survey reports, investigations, assessments, formal
evaluations or citations of either USCC or ROMG by any governmental agency that
regulates either.

         (d) If at any time during the term hereof, any Provider of Contractor's
physicians does not meet TPMG's credentialing standards, or the license,
certifications, or privileges of any Provider are suspended, revoked, expired or
not renewed then Contractor shall ensure that such Provider shall not thereafter
provide services to Members. If during the term hereof, any of the events listed
in (i) Subsection (c) above occur with respect to a Provider or (ii) Section 4.4
(d) occur with respect to a physician Provider, or there is conduct or
performance by a Provider that could adversely affect the health or welfare of a
Member, upon the written request of TPMG, such Provider shall not thereafter
render Services to Members until the matter has been resolved to TPMG's
satisfaction and TPMG consents in writing to the provision of Services by such
Provider.

                                    Page 19
<PAGE>

8.0 DISPUTE RESOLUTION, COMPLAINTS AND INQUIRIES

8.1 DISPUTE RESOLUTION.

         (a) In the event of a claim, dispute or other matter arising out of,
relating to, or in any way connected with this Agreement (collectively,
"Dispute" or "Disputes"), including the performance of or failure to perform any
term, covenant, or condition herein, either TPMG or Contractor shall submit a
notice regarding the nature of the Dispute to the other party at the address and
telephone number listed in Section 9.9. Thereafter, TPMG and Contractor shall
meet and confer in good faith to resolve the Dispute or Disputes; provided,
however, that Disputes for which a hearing is requested and allowed pursuant to
Section 4.7 shall proceed to a hearing and that Disputes or controversies
involving a Member or Members described in Section 8.2 shall be determined in
accord with the provisions of Section 8.2 (c) and the Member's Membership
Agreements' arbitration provision. Contractor shall work directly with TPMG to
reach a resolution of the Dispute, and shall not involve Members in any manner
concerning such Dispute, except to the extent that a Member is an indispensable
party in reaching a resolution. If a Dispute is not resolved by the parties or
by a hearing pursuant to Section 4.7, then it shall be submitted to binding
arbitration in accord with all procedures and rules applicable to arbitration of
claims, as set forth in the Membership Agreement, as amended from time to time
by Health Plan, except that notice shall be given as set forth in Section 9.9 of
this Agreement. The arbitration award may be entered as a judgment in accord
with applicable law in any court having jurisdiction thereof. The obligations
set forth in this paragraph shall also apply to any claims, disputes, or other
matters, irrespective of the legal theories asserted, between USCC and/or ROMG,
on the one hand, and TPMG, KFH or Health Plan, on the other hand, whether or not
KFH and Health Plan are also parties to the Agreement. In the event of a Dispute
solely between (i) TPMG, KFH and/or Health Plan and (ii) USCC and/or ROMG, venue
shall be Alameda County, California. An arbitration under this section shall be
consolidated with any other arbitration that includes claims by or against
Members (or kindred parties) or KP based on the same incident, transaction or
related circumstance.

         (b) The parties acknowledge that a breach of the obligations in
Sections 5.6 and 5.7 of this Agreement would cause irreparable injury to the
injured party which could not be compensated adequately in damages and that the
injured party shall be entitled, in addition to any other remedies or damages,
to a temporary restraining order and/or preliminary injunction to restrain the
violation of Sections 5.6 and 5.7 without the necessity of proving irreparable
injury. Such injunctive relief shall be granted without requiring the injured
party to post bond or other security. Any party may seek such temporary or
preliminary injunctive relief in a court of competent jurisdiction to restrain a
violation of the confidentiality obligations, but any permanent injunctive
relief as well as temporary or permanent injunctive relief to restrain the
violation of other obligations under this Agreement shall be resolved by
arbitration in accordance with Subsection 8.1 (a) above. The arbitrator shall
have authority to issue final injunctive relief, and any orders necessary to
carry out that relief, and such orders shall be confirmed as an enforceable
judgment in a court of competent jurisdiction.

                                    Page 20
<PAGE>

8.2 MEMBER COMPLAINTS, GRIEVANCES, INQUIRIES AND CLAIMS.

         (a) When a Member complaint is brought to Contractor's attention,
Contractor shall investigate such complaint and use their best efforts to
resolve such complaint in a fair and equitable manner. Contractor shall
cooperate with KP in identifying, processing and resolving all Member complaints
and grievances pursuant to KP's grievance procedures. Such cooperation will
include, but not be limited to, meeting with representatives of KP, providing
information bearing on the complaint to such representatives and taking all
reasonable actions suggested by such representatives to resolve the Member's
complaint. Contractor will promptly notify KP of receipt of all complaints from
or on behalf of Members. The parties will each promptly notify the other of the
receipt of any written complaint letters regarding Services provided to Members
by or on behalf of Contractor. Contractor shall comply with KP's resolution of
any such complaints and grievances.

         (b) Health Plan is responsible for administration of Covered Benefits,
including decisions regarding discontinuation or denial. All inquiries regarding
what services and benefits are Covered Benefits are to be referred to Health
Plan.

         (c) Contractor will promptly notify TPMG of any professional liability
claims filed or asserted regarding Services provided to Members by, or on behalf
of, Contractor. Contractor shall submit to binding arbitration in accordance
with the Membership Agreement claims asserted against Contractor, and Contractor
shall accept and be bound by the Membership Agreement's arbitration provision
there in as it may be amended from time to time, in the resolution of such
claims.

9.0 MISCELLANEOUS

9.1 CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

         (a) CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

         (b) CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

         (c) CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION

9.2 INDEPENDENT CONTRACTOR. Contractor enters into this Agreement, and will
remain throughout the term of this Agreement, as an independent contractor.
Nothing in this Agreement is intended to create nor shall it be construed to
create between TPMG and Contractor a relationship of principal, agent, employee,
partnership, joint venture or association. Neither TPMG nor Contractor has
authorization to enter into any contracts, assume any obligations or make any
warranties or representations on behalf of the other. No individual through whom
Contractor renders Services, shall be entitled to or shall receive from TPMG
compensation for employment, employee welfare

                                    Page 21
<PAGE>

and pension benefits, fringe benefits of employment, workers' compensation, life
or disability insurance or any other benefits of employment, in connection with
rendering Services. Contractor warrants that it will be responsible for all
legally required tax withholding for itself and its employees.

9.3 PRACTITIONER-PATIENT COMMUNICATION. TPMG allows open practitioner-patient
communication regarding appropriate treatment alternatives without penalizing
practitioners for discussing medically necessary or appropriate care for member
patients.

9.4 THIRD PARTY BENEFICIARIES. This Agreement is not intended to, nor does it
create any third party beneficiary rights in any person, including Members,
except as provided in Section 4.6(d)(ii) and where indicated for KFH and Health
Plan. No action to enforce the terms of this Agreement may be brought against a
party by a person who is not a party hereto, except for KP and Health Plan.

9.5 ASSIGNMENT. Subject to the provisions related to successors set forth below
neither this Agreement nor any duties or obligations under this Agreement may be
assigned or subcontracted by either USCC or ROMG without the prior written
consent of TPMG. TPMG agrees that such consent shall not be unreasonably
withheld. Any material change of ownership or control of either USCC or ROMG
shall be deemed an assignment of this Agreement requiring the prior written
consent of TPMG. If DHS or a Medi-Cal Plan's approval is required by law or
Health Plan Medi-Cal Contracts, assignment or delegation of this Agreement shall
be void unless prior written approval is obtained from DHS and/or such Medi-Cal
Plan

9.6 SUCCESSORS AND ASSIGNS. Subject to the restrictions on assignment contained
herein, this Agreement shall inure to the benefit of and be binding upon, the
parties hereto and their respective successors and assigns.

9.7 AMENDMENT. Unless otherwise specifically provided in this Agreement, this
Agreement may be amended only by mutual written consent of the parties.
Notwithstanding the foregoing, if Government Officials require any modification
of this Agreement in order for this Agreement to be in conformity with federal
or state law or if TPMG reasonably concludes that an amendment to this Agreement
is required because of a change in federal or state law, TPMG shall notify
Contractor of such proposed modification(s) ("Legally Required Modifications").
Such Legally Required Modifications shall be deemed accepted by USCC and ROMG
and this Agreement so amended, if Contractor does not, within thirty (30) days
following the date of the notice, deliver to TPMG its written rejection of such
Legally-Required Modifications.

9.8 GOVERNING LAW. This Agreement will be governed by and construed in accord
with California law. Any provision required to be in this Agreement by the Knox
Keene Act (California Health and Safety Code Section 1340 et seq. and
Regulations (California Code of Regulations Title 10 Section 1300 et seq.) shall
bind the parties whether or not provided in this Agreement. This Agreement shall
also be governed and

                                    Page 22
<PAGE>

construed in accord with applicable contractual requirements of Health Plan, as
required under the Medi-Cal program.

9.9 NOTICES. Any notices required to be given under this Agreement by either
party, or which may be made by either party to the other, shall be in writing,
delivered personally, by overnight delivery service with written proof of
delivery or by mail, registered or certified, postage prepaid, with return
receipt requested addressed as follows or to such other address as a party from
time to time informs the other in writing. Notice to USCC shall be deemed notice
to both USCC and ROMG.

THE PERMANENTE MEDICAL GROUP, INC.                RADIATION ONCOLOGY MEDICAL
                                                  GROUP
Medical Services Planning & Contracting Support
1814 Franklin Street, Third Floor                 c/o US Cancer Care
Oakland, California 94612                         700 Ygancio Valley Rd., #300
Attention:  Administrator                         Walnut Creek, CA  94596
(510) 987-3035

USCC HEALTH CARE MANAGEMENT CORPORATION
700 Ygancio Valley Rd., #300
Walnut Creek, CA 94596

If required by law or Health Plan Medi-Cal Contracts, Contractor shall provide
notice of amendment or termination of this Agreement to DHS and Medi-Cal Plans,
by first class certified mail, postage prepaid.

                                    Page 23
<PAGE>

9.10 NO VOLUME GUARANTEE. TPMG does not represent, warrant, or covenant any
minimum volume of patients or Members to Contractor.

9.11 WAIVER. A failure of either party to exercise any right provided for herein
shall not be deemed a waiver of any right hereunder. No party will be deemed to
have waived any rights hereunder unless the waiver is made in writing and is
signed by the waiving party's duly authorized representative.

9.12 SEVERABILITY. If any one or more of the provisions of this Agreement is
held invalid or unenforceable, the remaining provisions shall continue in full
force and effect.

9.13 INTERPRETATION OF AGREEMENT. This Agreement shall be interpreted according
to its fair intent and not for or against any one party on the basis of which
party drafted the Agreement. Section headings are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.

9.14 ENTIRE AGREEMENT. This Agreement, including the Exhibits attached hereto,
contains the entire agreement of the parties and as of the Effective Date
supersedes any prior negotiations, proposals or understandings relating to the
subject matter of this Agreement.

9.15 UNUSUAL OR UNEXPECTED CIRCUMSTANCES.

    (a) Neither of the parties shall be liable nor deemed in default for any
delay or failure in performance under this Agreement resulting directly or
indirectly from acts of God, civil or military authority, acts of public enemy,
war, accidents, fires, explosions, earthquakes, floods, failure or
transportation, machinery or supplies, vandalism, strikes, or other work
interruptions, or other cause beyond the reasonable control of either party.
However, both parties shall make good faith efforts to perform under this
Agreement in the event of any such circumstance.

    (b) Each party reserves the right to suspend this Agreement or any part
thereof in the event of such circumstance. Upon notification by the suspending
party that such circumstance giving rise to the delay or failure in performance
under this Agreement has ceased, this Agreement shall be revived for the
remainder of the term.

                                    Page 24
<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their respective duly authorized representatives as of the dates set forth
below.

THE PERMANENTE MEDICAL                      RADIATION ONCOLOGY
  GROUP, INC.                               GROUP, INC.

By: /s/ Robert Klein                        By: /s/ Harry Newman
    ---------------------------------           ----------------
    Robert Klein, M.D.                      Harry Newman, M.D.
    Associate Medical Director              President
                                            May 19, 1999

Reviewed By: /s/ B. Rossmiller
             -----------------
             Bellinda Rossmiller, Administrator
             Med. Svcs. Planning & Contracting Support
             Date: June 18, 1999

                                            USCC HEALTH CARE MGT. CORP.

                                            By: /s/ W. Brian Fuery
                                                ------------------
                                                W. Brian Fuery
                                                CEO
                                                May 18, 1999

CONFIDENTIAL TERMS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION

UNITED STATES CANCER CARE, INC.

By:      /s/ W. Brian Fuery
         ------------------
         W. Brian Fuery
         CEO
         May 18, 1999

                                     Page 25

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