Document:

Second Revised Licensing Agreement

 Exhibit 10.33 
 Licensing Agreement 
 THIS SECOND REVISED LICENSING AGREEMENT (the “Agreement”) between FUJIFILM
MEDICAL SYSTEMS U.S.A., INC., a New York corporation (“Licensor”), having a principal place of business at 41 9 West Avenue, Stamford CT, and VIRTUAL RADIOLOGIC CORPORATION (formerly Virtual Radiologic Consultants, Inc.,
herein, “Licensee”), a Delaware Corporation, having its principal place of business at 5995 Opus Parkway, Suite 200, Minnetonka, Minnesota 55343, is made effective as of the first day of April, 2006 (the “Effective Date”).

  

	1.	OVERVIEW. 

  

	1.1	General. This Agreement states the terms and conditions by which Licensor will license a medical imaging tool (“Synapse Software,” as hereinafter defined) to
Licensee and make modifications to the Synapse Software on behalf of Licensee. The Synapse Software to be licensed and provided hereunder is identified in Addendum A. This Agreement is intended to cover any and all software, maintenance and support
provided by Licensor to Licensee as identified in Addendum A. 

  

	1.2	Definitions. 

  

	 	(a)	“Synapse Software” means the Software product(s) identified in Addendum A to be licensed to Licensee, operated on Licensee’s servers and workstations, including the
Documentation and any updates or modifications by Licensor. 

  

	 	(b)	“Documentation” means any standard Fuji documentation provided to users including, but not limited to, documents entitled Synapse Product Release Specification, Synapse
HIIS Administration Manual, SYNAPSE System Administration Manual, Synapse Workstation Administration Manual, and materials discussing application and system administration, training, support, troubleshooting and installation for any release
currently available to Licensee. 

  

	 	(c)	“Intellectual Property Rights” means any and all rights in and to the Synapse Software now known or hereafter existing, including without limitation (a) rights
associated with works of authorship throughout the universe, including exclusive exploitation rights, copyrights and mask works, (b) trademark and trade name rights, (c) trade secret rights, (d) patents, designs, algorithms and other
industrial property rights, (e) other intellectual and industrial property and proprietary rights of every kind and nature throughout the universe, whether arising by operation of law, by contact or license, or otherwise, and (f) all
registrations, applications, renewals, extensions, combinations, divisions or reissues of the foregoing. 

  

	 	(d)	“Customer(s)” refer(s) to those healthcare institutions or medical practices to which the Licensee provides professional telemedicine or infrastructure services.

  

	 	(e)	“Patient Encounter” means a set or sets of DICOM images from a single modality relating to a single patient within a 24 hour period that are obtained by a Customer and
electronically communicated for interpretation within a 24 hour period to a Licensee server running the Synapse Software, and includes such set or sets of images that are transferred from a health care institution to another Customer utilizing
Licensee’s infrastructure. 

  

	 	(f)	“Processed Study” means the DICOM images generated during a Patient Encounter upon which Licensee or a Customer of Licensee utilizing Licensee’s infrastructure
renders a teleradiology interpretation and for which Licensee collects revenues and does not permanently store that set of images for the Customer in the Synapse Software. The term Processed Study does not include a set of DICOM images for which
(i) Licensee renders a diagnostic interpretation and permanently stores those clinical exams, (ii) the Licensee renders a diagnostic interpretation exclusively using systems other than the specific licensed Synapse Software,
(iii) Licensee or Customer renders a diagnostic interpretation using Synapse Software licensed from Licensor by an entity other than the Licensee, (iv) the images were transmitted for the purpose of testing end-to-end connectivity between
Licensee and a Customer for which no report was dictated, or (v) the images constitute a prior study and are sent solely for comparison with the Processed Study. 

  

	2.	THE SYNAPSE SOFTWARE; OWNERSHIP, JOINT OPPORTUNITIES AND LICENSE. 

  

	2.1	Scope of the Synapse Software. The scope of the licensed Synapse Software is as set forth in Addendum A. 

	2.2	Intellectual Property Ownership. Licensee acknowledges that, except for the rights expressly granted herein, this Agreement does not transfer to Licensee, and Licensee does
not obtain from Licensor, any rights in and to the Synapse Software. All right, title and interest, including without limitation intellectual property rights, in and to the Synapse Software will remain solely with Licensor. Nothing in this section
is intended to, and shall not be construed to, transfer to Licensor any rights in intellectual property developed by Licensee. Licensee’s intellectual property rights shall remain solely with Licensee. 

  

	2.3	Joint Opportunities. 

  

	 	(a)	Application Service Provider (ASP). Licensor authorizes Licensee to permit parties other than direct affiliates of Licensee, but who are Customers of Licensee, to utilize and access
Licensee’s Synapse infrastructure for the purpose of the transmission, receipt and interpretation of Processed Studies. 

  

	 	(b)	Synapse Compression Gateway. At the request of the Licensee, Licensor will negotiate in good faith for commercial deployment and support of a Synapse Compression Gateway. Synapse
Compression Gateway is understood to enable third parties such as hospitals to transmit compressed Image data over a VPN tunnel or similar network connection to Licensee. Additional licensing opportunities for those third parties to access acquired
images will be investigated. 

  

	2.4	License Grants and Prohibitions 

  

	 	(a)	License Grant. Licensor hereby grants to Licensee a non-exclusive, non-transferable license (the “License”) to (i) operate the Synapse Software on one
or more servers and one or more workstations as required to satisfy Licensee’s volume, in Licensee’s data center. Except as otherwise expressly provided herein, license granted to Licensee explicitly excludes the right to grant to any
Sub-Licensee the right to operate the Synapse Software on Licensee’s servers and workstations or resell licenses to use the Synapse Software to its Customers on other servers or workstations. The License expressly excludes the right of Licensee
or Customers to permanently store images within the Synapse Software. 

  

	 	(b)	Additional License Grant. Licensor hereby grants to Licensee a non-exclusive, non-transferable right to use any demonstration Synapse Software provided by Licensor for the
sole purpose of demonstrating the Synapse Software’s capabilities to prospective Customers of Licensee. 

  

	 	(c)	Licensee Prohibitions. Unless Licensee has received Licensor’s prior written consent, and except as expressly provided otherwise hereunder, Licensee is expressly
prohibited from (i) renting, selling or otherwise transferring, directly or indirectly, the Synapse Software or any portion thereof, to any third person, Customer or entity other than a direct affiliate of Licensee; and (ii) reverse
assembling, reverse compiling, direct querying Synapse DB, modifying Synapse source code, DB content, or DB schema or otherwise translating the Synapse Software. However, Licensee may continue to query the Synapse DB for the purposes for which
Licensee currently queries the Synapse DB. Licensee may also query the Synapse DB to facilitate Licensee’s other proprietary software functions under the condition that Licensor does not respond with an available release within 6 months to a
Licensee documented problem that materially impacts the scaling of Licensee’s business to meet market demand, and must be installed into Licensee’s system within 14 days of availability of said release. In the event of any modification or
Synapse DB query by Licensee, Licensee will document to Licensor the interactions/changes made. When future releases affect that portion of the database that Licensee proprietary software is interacting with, Licensor will clearly document those
changes to Licensee in advance of release. Licensor will not be responsible for any performance degradation, penalty credits or modifications to future releases caused by Licensee performed changes. 

  

	3.	BILLING, ACCOUNTING AND PAYMENT PROCEDURES. 

  

	3.1	Revenue Sharing Arrangement. Subject to the provisions of Sections 3.1(a), (b) and (c) hereof, Licensee shall pay Licensor a fee (the “License Fee”) equal
to [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] ($ [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT]) per Processed Study for CT, US, MR, NM or similar modality images excluding x-ray, or
[INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] ($ [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT]) per Processed Study for x-ray modality images. 

  

	 	(a)	 Notwithstanding anything to the contrary in this Section 3.1, and subject to the provision of Section 3.1(b), Licensee shall be required to pay Licensee a
minimum of [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] ($ [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT]) for Processed Studies for calendar year 2006, exclusive of any prior year’s
credits. For 

	 	 
avoidance of doubt, the parties acknowledge that VRC is obligated to pay Fuji the approximate sum of [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] ($ [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT]) for License Fees incurred by VRC from January 1, 2006 through March 31, 2006. Upon payment of that amount, or such other amount actually
due for that period, VRC shall be obligated to pay Fuji the difference between [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] dollars ($ [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT]) and the
amount theretofore paid with respect to that period. The parties further acknowledge that License Fee set forth above shall be effective April 1, 2006. 

  

	 	(b)	For calendar years 2007 and thereafter, Licensee shall pay licensor a License Fee per Processed Study determined on a quarterly basis with reference to the following chart as
elected by Licensee: 

  

					
	 Guaranteed Quarterly Payment
	  	 Fee per Processed Study:
 CT, US, MR, NM, and similar,
 non x-ray modality images
	  	 Fee per Processed Study:
 x-ray modality images

	[INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
	        $	  	        $	  	        $
	        $	  	        $	  	        $
	        $	  	        $	  	        $

 At least ten (10) days prior to the commencement of each calendar quarter of 2007 and of each
succeeding year during the term of this Agreement, Licensee shall notify Licensor of Licensee’s election of guaranteed quarterly payments and the corresponding Fee per Processed Study, which election shall be binding on Licensee and Licensor.
In the absence of timely election by Licensee, the Guaranteed Quarterly Payment shall be $[INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] and the Fee per Processed Study shall be $ [INFORMATION SUBJECT TO A REQUEST FOR
CONFIDENTIAL TREATMENT] and $ [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] respectively for the applicable modalities. 
  

	3.2	Licensing Scalability. The Licensor shall provide to Licensee for the duration of this Agreement adequate licenses to meet the workload requirements of Licensee. Licensee is
responsible for acquiring and operating the necessary servers and other supportive infrastructure. In consideration of the terms of Section 4.6 below, Licensor will make available and install on designated server(s) additional License(s) as
required to maintain Licensee productivity and efficiency. In addition, Licensor will provide an adequate number of licenses, at least one, and Licensee will provide a like number of servers, for the purposes of system testing and operational impact
analysis. System testing licenses and servers will not be used by Licensor in the generation of revenues. 

  

	3.3	Payment Terms. Licensee shall be responsible for accurately calculating the Processed Studies from Customer sites. Licensor will, from time to time, remotely administer,
manage and monitor Licensee’s use of the Synapse Software. Within ten (10) days of the end of each calendar quarter, Licensee will provide Licensor a quarterly accounting of Licensee Processed Studies, Licensor will provide an invoice to
Licensee and Licensee will remit a payment to Licensor for license payments accrued during the previous calendar quarter. All payments will be made in U.S. dollars via wire transfer. In the event payment is late, Licensor reserves the right to
charge interest at the rate of twelve percent (12%) per annum or the highest legal rate, whichever is lower, from the due date until the date payment is received by Licensor. 

  

	3.4	Co-Marketing and Joint Sales. Each party agrees to designate and maintain a marketing and sales contact for the purpose of developing a cohesive co-marketing plan. In
connection with the marketing and promotion of the Licensee’s use of the Synapse Software, the parties will: 

  

	 	(a)	coordinate on and agree to the development of marketing materials and promotion plans, including but not limited to the issuance of a joint press release; 

 

	 	(b)	provide reasonable cooperation and participation in designated marketing efforts, including trade shows, seminars, public relations events, press releases, web site announcements,
conventions and conferences; 

  

	 	(c)	provide opportunity for clinical product development and direction guidance in the format of steering committees or users’ groups with meetings held at major industry
gatherings or at private events; and 

  

	 	(d)	optionally provide reasonable cooperation in arranging for the training of personnel as appropriate and necessary for communication of Licensee’s services that are available.

	 	(e)	investigate strategies to utilize and grow Licensee’s and Licensor’s respective installed base. 

  

	3.5	Trademark License. The parties agree not to use the other party’s trademarks, logos, trade designations trade dress and trade names (“Trademarks”) unless
approved in writing by the other party. The license granted in this Agreement will be limited to the terms set forth in this Agreement and will terminate upon termination of this Agreement for any reason. 

  

	3.6	Taxes. Each party will be responsible for its own taxes properly levied on it by virtue of the undertakings hereunder. 

  

	4.	LICENSOR RESPONSIBILITIES. 

  

	4.1	Authority and Performance of Licensor. Licensor represents and warrants that it owns the Synapse Software and has the legal right to enter into this Agreement and perform its
obligations hereunder. 

  

	4.2	Installation, Maintenance, Support and Updates. Licensor will be responsible for installing the Synapse Software on Licensee’s servers located in Licensee’s data
center. All other installations and support shall be provided remotely. In addition, Licensor will provide Licensee with maintenance, support and updates to the Synapse Software at no additional charge above the cumulative License Fees accrued.

 (a) Operations Support. Licensor will continue to provide diagnostic support for facility modality connectivity trouble
shooting with a 30 minute response time over the phone from 8-5 CST. All other diagnostic support will be 24x7over the phone. In addition, Licensor will provide to Licensee in a timely manner all data and/or functionality reasonably necessary to
permit uninterrupted functioning of the Synapse Software in a manner reasonably consistent with Licensee’s business operations. Licensee agrees that any changes or modifications to Licensee’s infrastructure that could impact Synapse
Software will be communicated in advance to Licensor to the extent commercially reasonable so that support for problems encountered during those Licensee changes can be prepared. 
 (b) Planned Synapse Upgrades. Within 4 weeks following written request of the Licensee, Licensor will engage Licensee with an upgrade team to initiate
upgrade planning and create a mutually agreed upon schedule for installation, test and go-live. 
 (c) Service Releases. For any service
releases made generally available to Licensor’s installed base to address performance issues with Synapse, Licensee will be provided priority status for installing those updates to their system. Service releases will be supported for the most
recent two major versions of Synapse installed base releases. 
 (d) Synapse Capacity Threatening Event. If Licensee experiences a Capacity
Threatening Event, which by definition causes degradation to the Licensee’s ability to continue to accept expected volumes of customer images or to distribute images to Licensee’s affiliated radiologists or the affiliated radiologists of
Licensee’s Customers, Licensee will make every attempt to give Licensor as much advance notice as possible and Licensor will make all possible resources available as soon as possible, and will facilitate modification of schedules of additional
resources to make additional resources available as required to resolve the cause of the Capacity Threatening Event. 
 (e) Ongoing
Development 
 i. Reasonable Cooperation. Licensor will reasonably cooperate with the Licensee to ensure that future versions, releases
or modifications of Synapse will be compatible with the Licensee’s software tools that have been, are being or will be designed to interface with Synapse provided that Licensee follows Licensor’s preexisting documented procedures for
interfacing with Synapse or, if no such documented procedures exist, any applicable mutually agreed upon procedures that have been documented in writing between both parties. If no mutual agreement can be reached, Licensor will not cause to cease
operation or to stop functioning partially or completely or in any other way interfere with Licensee’s software tools or those tools’ interactions with Synapse. Licensor shall also provide Licensee with any authentication information
necessary to facilitate the function of Licensee’s software tools. Licensee will continue to utilize the then currently working version of Synapse through the remaining term of this Agreement unless a mutually agreed upon method for
interoperability is achieved. 

 ii. Additional Synapse Modules. Licensor will make additional Synapse options or services not
outlined in Addendum A available to the Licensee at no additional charge if it can be reasonably shown that these options will provide additional capacity to the Licensee’s teleradiology services for which additional Processed Studies can be
acquired. For those options which entail a third party or sublicense cost to Licensor, such costs will be paid by Licensee. Any other options requested by Licensee that offer functionality beyond that needed for teleradiology services will either be
offered at a discount off the then current list price at as least as favorable a discount percentage as given to Licensor’s largest customer, or such price for that option will be negotiated in good faith into a per Study charge that is
mutually agreeable. 
 iii. Enhancements. Licensor agrees to interact directly with Licensee on documented feature or enhancement
recommendations to potentially include in future Synapse releases. The timing of the addition of these recommendations to future releases will be at Licensor’s sole discretion but will not be unreasonably withheld if they are seen to be useful
for other customers of Licensor or for future distributed diagnosis markets. If it is determined that these recommendations are primarily to the benefit of Licensee, Licensor will negotiate in good faith with Licensee within 45 days of submission of
documented proposal to see if alterative methods can be achieved to accomplish those goals. If no alternative method is available, Licensor agrees to produce a Scope of Work in a timely manner for a separately funded custom engineering project to
satisfy the recommendation. 
  

	4.3	Licensor’s Sales and Technical Expertise. Licensor will provide and maintain the capabilities and resources to do the following: (a) inform Licensee properly
concerning the features and capabilities of the Synapse Software; (b) service and support the Synapse Software in accordance with Licensor’s support obligations to other Synapse users. 

  

	4.4	Support Services. Licensee will maintain Tier 1 technical support, limited to initial telephone support, for network, storage and data center services. Upon determination
that a problem exists with the Synapse Software, Licensor will make commercially reasonable efforts to provide prompt and complete support services for the Synapse Software to Licensee in a manner consistent with the support services it routinely
offers Synapse Software licensees. Support services to Licensee include remote training in operation of the Synapse Software, timely responses to general questions concerning operation of the Synapse Software, and diagnosis of any nonconformance by
the Synapse Software with the specifications set forth in the Documentation. Licensor shall continuously monitor Licensee’s servers and Synapse Software performance, including all associated underlying software required by Synapse to function,
as part of Licensor’s maintenance of components and functions which Licensor does not permit Licensee to directly access. Licensor shall provide to Licensee a monthly report stating all currently set configuration parameters, performance
metrics and recommendations of modifications or additions to be made to the Synapse Software, associated underlying software, or servers or networks. However, any application training, administrator training or other professional services to
Licensee relating to the Synapse Software may be provided by Licensor, at its sole discretion, pursuant to a separate pricing contract with Licensee not to exceed pricing consistent with those offered to other Synapse licensees.

  

	4.5	Integration and Development Services. Under a separate future addendum, Licensor will support Licensee’s efforts to integrate the functions of PACS and RIS. Licensor
will provide limited verbal guidance as required for no charge. Licensee and Licensor will agree on a Statement of Work for Professional Services activity paid at agreed rates for Time and Materials. 

  

	4.6	Support Service Level Agreement In the event any issue that arises solely due to Synapse Software prevents the Licensee from efficiently providing service to Licensee’s
clients (this baseline efficiency is defined by the ability of each Licensee Radiologist performing interpretations at that time can perform [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] studies* per hour) then a
penalty period is commenced that shall last until such time that baseline efficiency is restored., The volume of studies performed for the duration of that penalty period will be compared to the volume of studies performed for the duration of the
same time period of the most recent preceding week without a penalty period. Licensor will provide Licensee a credit equal to [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] times the difference in Licensor fees generated by
Licensee between the two comparison periods. 

  

	*	For purposes of this Section 4.6 only, “study” means the single body part having an individual Current Procedural Terminology (CPT) code currently referenced by the
United States Center for Medicare Services. 

  

	4.7	 Licensor warrants that the Synapse Software will substantially conform to the specifications and functionalities set forth in the Documentation, and will not run
afoul of any applicable laws, codes or 

	 	 
regulations. Further, Licensor agrees to maintain all required governmental and regulatory filings and approvals (e.g. FDA). 

  

	4.8	Licensor will provide Licensee with relevant Documentation including materials discussing application and system administration, training, support, troubleshooting, and
installation. 

  

	4.9	Since Licensor will be utilizing remote access to the server and administer the Synapse Software, Licensor agrees to maintain the User ID, password and other security information in
strict confidence. Licensor assumes all liability associated with any security breaches that result from failure to comply with this provision. 

  

	4.10. 	No Other Warranty. LICENSOR DOES NOT MAKE, AND HEREBY DISCLAIMS, ANY AND ALL OTHER EXPRESS AND/OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF
MERCHNTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT AND TITLE, AND ANY WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE, OR TRADE PRACTCE. 

  

	5.	LICENSEE’S OBLIGATIONS. 

  

	5.1	Hosting Services. Licensee shall provide the equipment to operate the Synapse Software and provide technical support for the network infrastructure and Workstations unless a
separate and fully detailed Hosting Services Agreement is made part of this Agreement. 

  

	5.2	Licensee Covenants. Licensee will: (i) conduct business in a manner that reflects favorably at all times on the Synapse Software and the good name, goodwill and
reputation of Licensor; (ii) make no false or misleading representations with regard to Licensee’s relationship to Licensor or the Synapse Software; (iii) make no representations, warranties or guarantees to Customers or to the trade
with respect to the specifications, features or capabilities of the Synapse Software that are not contained in the Documentation; and (iv) ensure that all Licensee employees are provided competent training as to the use of the Synapse Software.

  

	6.	INSPECTIONS, RECORDS AND REPORTING. 

  

	6.1	Reports. Licensee will provide Licensor a quarterly accounting of Licensee’s payments and remit payment due Licensor in accordance with Section 3.2.

  

	6.2	Records. During the term of this Agreement and for one (1) year after its expiration or termination, unless earlier furnished to or audited by Licensor, Licensee will
make available for examination only such records regarding the Synapse Software as are necessary to determine the accuracy of the payments provided in this Agreement. Such examination shall occur not more than twice per fiscal year, shall be at
Licensor’s expense and shall occur at reasonable times which are convenient for Licensee. Licensee will maintain complete and accurate Synapse Software licensing records directly relating to distribution of the Synapse Software to workstations.

  

	7.	LIMITATIONS OF LIABILITY. 

  

	7.1	Consequential Damages Waiver. Subject to the provisions of Section 4.6 and Section 8.2, in no other event will either party be liable or responsible to the other
for any type of incidental, punitive, indirect or consequential damages, including, but not limited to, lost revenue, lost profits, replacement goods, loss of technology, rights or services, loss of data, or interruption or loss of use of service or
hardware, even if advised of the possibility of such damages, whether arising under theory of contract, tort (including negligence), strict liability or otherwise. This limitation shall survive any failure of an exclusive or limited remedy. IN NO
EVENT SHALL THE AGGREGATE LIABILITY OF EITHER LICENSOR OR LICENSEE UNDER THIS AGREEMENT EXCEED THE AMOUNT PAID TO LICENSOR BY LICENSEE. 

  

	8.	INDEMNIFICATION. 

  

	8.1	Representations and Warranties. Licensor and Licensee each represent and warrant that they own and have the right to publish and license the respective information
contributed by each party to be contained in the Synapse Software, Its subsequent additions or enhancements, or add-on features or appendices. 

  

	8.2.	 Indemnification Claims. Each party will indemnify, defend and hold the other harmless for all losses, damages, costs or expenses (“Losses”)
resulting from any third party claim or allegation arising out of the 

	 	 
indemnifying party’s breach of this Agreement, gross negligence or willful misconduct in the performance of the duties set forth herein. In addition,
Licensor will indemnify, defend and hold Licensee harmless for all Losses arising out of the infringement or alleged infringement of any intellectual property right of any third party by the Synapse Software. 

  

	8.3	Infringement Remedy. If the Synapse Software or a portion thereof becomes, or in Licensor’s opinion is likely to become, the subject of an infringement claim, Licensor
may, at its option and expense, either (a) procure the right to continue using the Synapse Software or portion thereof, or (b) replace or modify the Synapse Software or portion thereof so that it becomes non-infringing. Notwithstanding the
foregoing, Licensor will have no obligation under this Section 8 or otherwise with respect to any infringement claim based upon (i) any use of the Synapse Software by Licensee in breach of this Agreement, (ii) any use of the Synapse
Software that is not an intended use of the Synapse Software, or (iii) any use of any release of the Synapse Software other than the most current release directly provided to Licensee. 

  

	8.4	Notice. Each party’s indemnification obligations hereunder shall be subject to (i) receiving prompt written notice of the existence of any action; (ii) having,
at its option, sole control of the defense of such action and any related settlement negotiations; and (iii) receiving full cooperation of the indemnified party in the defense thereof. 

  

	9.	TERM; SUSPENSION; TERMINATION. 

  

	9.1.	Term. The initial term will commence on the Effective Date, and will continue for an initial period of twenty four (24) months (the “Initial Term”).
Thereafter, this Agreement shall automatically renew for successive one (1) year periods (each a “Renewal Term”) unless terminated in accordance with the terms herein. Any party not wishing to renew this Agreement must notify the
other in writing at least 180 days prior to the commencement of a Renewal Term, and must fulfill any responsibilities under this Agreement necessary to provide continued support of any Licenses in effect until termination or expiration of the term,
whichever is sooner. 

  

	9.2.	Termination For Cause. Either party may terminate this Agreement only for cause if (i) the other party breaches any material term or condition of this Agreement and
fails to cure such breach within thirty (30) days after receipt of written notice of the same or (ii) the other party becomes insolvent, files or has filed against it a petition in bankruptcy. Either party may terminate this Agreement at
any time in the event that the other party is merged, consolidated, sells all or substantially all of its assets, or implements or suffers any substantial change in management or control in breach of Section 10.7; or a party makes a material
misrepresentation in any material information in connection with entering into this Agreement or performance of the reporting obligations under Section 7 hereof. 

  

	9.3.	No Liability for Termination. Except as expressly provided for herein, neither party will be liable to the other for any termination or expiration of this Agreement in
accordance with its terms. 

  

	9.4	Effect of Termination. Upon the effective date of termination or expiration of this Agreement 

  

	 	(a)	Licensee shall have the right to continue to have access to the Synapse Software prior to the date of termination until such Licenses have expired or terminated, whichever is sooner
(the “Wind-Down Period”). Licensee shall remit any payments due Licensor, and Licensee shall not be permitted to enter into any new Customer agreements using Synapse Software during the Wind-Down Period; 

  

	 	(b)	for the duration of the Wind-Down Period, Licensor shall continue to provide Synapse Software updates, maintenance and support services; 

  

	 	(c)	after the duration of the Wind-Down Period, the Licensee shall discontinue use and return or destroy, at Licensor’s option, the original and all copies of the Synapse Software
made in connection with this Agreement. This requirement will apply to all copies in any form including translations, whether partial or complete and, if destroyed, Licensee shall deliver to Licensor a written certification thereof signed by an
officer of Licensee; and 

  

	 	(d)	The parties will immediately cease any display, advertising and use of all the other party’s products, patents, copyrights, and Marks. 

	10.	MISCELLANEOUS PROVISIONS. 

  

	10.1.	Force Majeure. Except for the obligation to make payments, neither party will be liable for any failure or delay in its performance under this Agreement due to any cause
beyond its reasonable control, including acts of war, acts of God, earthquake, flood, embargo, riot sabotage, labor shortage or dispute, governmental act or failure of the Internet (not resulting from the actions or inactions of Licensor), provided
that the delayed party: (a) gives the other party prompt notice of such cause, and (b) uses its reasonable commercial efforts to promptly correct such failure or delay in performance. 

  

	10.2. 	Marketing. Upon prior written consent by Licensee, Licensor may publicly refer to Licensee, orally and in writing, as a Licensee of Licensor. 

  

	10.3. 	Non-Solicitation. During the Term of this Agreement and continuing through the first anniversary of the termination of this Agreement, each party agrees that it will not, and
will ensure that its affiliates do not directly or indirectly, solicit or attempt to solicit for employment any persons employed or contracted by the other party. 

  

	10.4. 	No Third Party Beneficiaries. Licensor and Licensee agree that, except as otherwise expressly provided in this Agreement, there shall be no third party beneficiaries to this
Agreement including but not limited to the insurance providers for either party. 

  

	10.5. 	Choice of Laws, Jurisdiction and Venue. In the event of an unresolved dispute, this Agreement shall be construed, interpreted, applied, and the rights of the parties
hereunder shall be determined, in accordance with the laws of the State of New York without regard to conflicts of laws rules, and the dispute shall be subject to the jurisdiction of the federal and state courts of the State of New York. The parties
expressly and irrevocably consent to the personal jurisdiction of the federal and state courts within the State of New York. The parties also expressly consent to (i) service of process being effected upon them by registered mail sent to the
addresses set forth in this Agreement and (ii) any final judgment rendered against a party in any action or proceeding being conclusive as to the subject of such final judgment and enforceable in other jurisdictions in any manner provided by
law. The prevailing party in any such action, at law or equity, shall be entitled to reimbursement of its attorney’s fees (including in-house counsel), expenses and costs incurred to pursue or defend such action from the non-prevailing party.

  

	10.6. 	Severability. Waiver. In the event any provision of this Agreement is held by a tribunal of competent jurisdiction to be contrary to the law, the remaining provisions of this
Agreement shall remain in full force and effect. The waiver of any breath or default of this Agreement will not constitute a waiver of any subsequent breath or default, and will not act to amend or negate the rights of the waiving party.

  

	10.7. 	Assignment. Neither party may assign its rights or delegate its duties under this Agreement either in whole or in part without the prior written consent of the other party,
and any attempted assignment or delegation without such consent will be void. This Agreement will bind and inure to the benefit of each party’s successors and permitted assigns. 

  

	10.8. 	Notice. Any notice or communication required or permitted to be given hereunder may be delivered by hand, deposited with an overnight courier, sent by email, confirmed
facsimile, or mailed by registered or certified mail, return receipt requested, postage prepaid, in each case to the address of the receiving party as listed in this Agreement or at such other address as may hereafter be furnished in writing by
either party to the other party. Such notice will be deemed to have been given as of the date it is delivered, mailed, emailed, faxed or sent, whichever is earlier. 

  

	10.9. 	Relationship of Parties. Licensor and Licensee are independent contractors and this Agreement will not establish any relationship of partnership, joint venture, employment,
franchise or agency between Licensor and Licensee. Neither Licensor nor Licensee will have the power to bind the other or incur obligations on the other’s behalf without the other’s prior written consent, except as otherwise expressly
provided herein. 

  

	10.10. 	 Entire Agreement; Counterparts; Originals. This Agreement, including all documents incorporated herein by reference and all documents incorporating this
Agreement therein, constitutes the complete and exclusive agreement between the parties with respect to the subject matter hereof, and supersedes and replaces any and all prior or contemporaneous discussions, negotiations, understandings and
agreements, written and oral, regarding such subject matter. Any additional or different terms in any purchase order or other response shall be of no effect. This Agreement may be executed in two or more counterparts, each of which will be deemed an
original, but all of which together shall constitute one and the same instrument Once 

	 	 
signed, any reproduction of this Agreement made by reliable means (e.g., photocopy, facsimile) is considered an original. This Agreement may be changed only
by a written document signed by authorized representatives of Licensor and Licensee in accordance with this Section 10.10. For purposes of this Agreement, the term ‘written’ means anything reduced to a tangible form by a party,
including a printed or hand written document e-mail or other electronic format. 

  

	10.11. 	Interpretation of Conflicting Terms. In the event of a conflict between or among the terms in this Agreement and other documents referred to herein or made a part hereof, the
documents shall control in the following order this Agreement, Hosting Service Agreement, Addendum A, then any other documents. 

 Authorized
representatives of Licensee and Licensor have read the foregoing and all documents incorporated therein and agree and accept such terms effective as of the Effective Date first above written. 
  

									
	Virtual Radiologic Corporation	 		 	FUJIFILM MEDICAL SYSTEMS U.S.A, INC.
					
	Signature:	 	/s/ Brent Backhaus	 		 	Signature:	 	/s/ Clayton Larsen
	Print Name:	 	Brent Backhaus	 		 	Print Name:	 	Clayton Larsen
	Title:	 	CTO	 		 	Title:	 	VP, Marketing and Network Business Devel.

 This Agreement incorporates the following documents: 
  

	•	 	Addendum A — Synapse Software Scope 

  

	•	 	Teleradiology Services Agreement 

 ADDENDUM A 
 SYNAPSE SOFTWARE SCOPE 
 SYNAPSE EXAM VOLUME LICENSES 
  

			
	NSS-OYR-247-OPER	  	Per Study License – 24/7 Service
		
	NSS-HL7-INT-OPER	  	HL7 (HIIS) Integration License Option
		
	NSS-HL7-BI-UP-OPER	  	Upgrade HIIS to Bidirectional
		
	NSS-URL-INT-OPER	  	URL Integration from External System OptionRevolving Loan Agreement, dated as of December 6, 2006

 Exhibit 10.40 
 REVOLVING LOAN AGREEMENT 
 THIS REVOLVING CREDIT AGREEMENT (this “Agreement”) is made as of the 6th day of
December, 2006, by and between VIRTUAL RADIOLOGIC CORPORATION, a Delaware corporation (the “Borrower”), and ASSOCIATED BANK, NATIONAL ASSOCIATION, a national banking association with its banking house located in Plymouth, Minnesota (the
“Lender”). 
 W I T N E S S E T H : 
 WHEREAS, the Borrower has requested the Lender to extend to the Borrower a revolving line of credit in the original principal amount of Two Million and 00/100 Dollars ($2,000,000.00). 
 WHEREAS, the Lender is willing and prepared to extend such line of credit to the Borrower upon the terms and subject to the conditions hereinafter set forth. 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. DEFINITIONS. As used herein, the following terms shall
have the following meanings for the purpose of this Agreement and the documents related hereto unless the context in which such term is used clearly requires otherwise: 
 (a) Accounts: all of the Borrower’s accounts, as such term is defined in the UCC, including without limitation the aggregate unpaid obligations of customers and other account debtors to the Borrower
arising out of the sale or lease of goods or rendition of services by the Borrower on an open account or deferred payment basis. 
 (b)
Advance: an Advance by the Lender pursuant to Section 2 hereof. 
 (c) Affiliate: means any Person controlled by,
controlling or under common control with the Borrower, including (without limitation) any Subsidiary of the Borrower. For purposes of this definition, “control,” when used with respect to any specified Person, means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise. 
 (d) Banking Day: any day on which the Federal Reserve Bank of Minneapolis, Minnesota, is open for business. 
 (e)
Borrowing Base: “Borrowing Base” means, at any time the lesser of: 
 (i) the Maximum Line; or 
 (ii) subject to change from time to time in the Lender’s sole discretion, 80% of Eligible Accounts. 
  

 1 

 The amount of the Borrowing Base shall be determined periodically from the most recent Borrowing Base
Certificate and supporting reports delivered to the Lender pursuant to Section 8(a) hereof. 
 (f) Borrowing Base Certificate: the
form of Borrowing Base Certificate attached hereto as Exhibit B. 
 (g) Capital Expenditures: for any 12-month period, the
Borrower’s net fixed assets at the end of the period less net fixed assets at the beginning of the period plus depreciation expense for the period less financed capital expenditures. 
 (h) Collateral: the collateral described in and subject to the Security Documents. 
 (i) Compliance Certificate: the form of Compliance Certificate attached hereto as Exhibit A. 
 (j) Debt: the aggregate amount of all of the Borrower’s items properly classified as liabilities on its balance sheet in accordance with GAAP.

 (k) Eligible Accounts: the United States dollar value (net of finance charges and/or service charges) of only such Accounts of the
Borrower arising from the ordinary course of business in which the Lender holds a first priority security interest and as to which the Lender, in its reasonable business judgment, shall from time to time determine to be collectible in a timely
manner in the ordinary course of business without dispute or set-off. Without limiting the Lender’s right, in its reasonable business judgment, to consider any Account not to be an Eligible Account, and by way of example only of types of
Accounts that the Lender will consider not to be Eligible Accounts, the Lender, notwithstanding any earlier classification of eligibility, may consider any Account not to be an Eligible Account if: (a) any warranty is breached as to the Account
or the Account debtor disputes liability or makes any claim with respect to the Account; (b) (i) the Account is not paid by the Account debtor within 90 days after the date of the original invoice relating thereto; or (ii) the Account
is owed by any Account debtor who has not paid 25% or more of such Account debtor’s Accounts within the time period specified in subsection (b)(i) above; (c) a petition in bankruptcy or other application for relief under any insolvency law
is filed with respect to the Account debtor owing the Account, or the Account debtor owing the Account assigns for the benefit of creditors, becomes insolvent, fails, suspends, or goes out of business, or the Lender, in its reasonable business
judgment, shall become dissatisfied with the creditworthiness of an Account debtor owing an Account; (d) the Account arises from a sale to an Account debtor outside the United States, unless the sale is on letter of credit, acceptance or other
terms acceptable to the Lender in its sole and absolute discretion; (e) the Account debtor is an Affiliate, supplier or creditor of the Borrower; (f) the Account debtor is the United States of America or any agency or department thereof
and the Account is subject to the Assignment of Claims Act; or (g) any Account covering inventory which has not been shipped to the Account debtor. 
 (l) Event of Default: any one or more of the events listed in Section 9 hereof. 
  

 2 

 (m) Financing Statements: UCC-1 financing statements naming the Borrower as debtor in favor of the
Lender as secured party. 
 (n) Fixed Charge Coverage Ratio: the ratio of (i) Operating Cash Flow, to (ii) Total Fixed
Charges. 
 (o) GAAP: generally accepted accounting principles, consistently applied. 
 (p) Lease: any lease agreement between an owner of any Premises leased to the Borrower, as tenant. 
 (q) Loan Documents: this Agreement, the Note, the Financing Statements, the Security Agreement, the Organizational Documents and any and all other
documents now or hereafter executed and/or delivered by the Borrower to the Lender in connection with the Revolving Line of Credit. 
 (r)
Maximum Line: the sum of $2,000,000. 
 (s) Note: the Revolving Note of even date herewith executed by the Borrower in the
original principal amount of Two Million and 00/100 Dollars ($2,000,000.00) and payable to the order of the Lender. 
 (t) Operating Cash
Flow: the Borrower’s net income after taxes and exclusive of extraordinary gains and losses, gains on sale of fixed assets, and other income, plus depreciation, amortization, interest expense, non-cash stock compensation expense and lease
expense, less dividends and distributions. 
 (u) Organizational Documents: collectively, the following documents, each of which shall
be in form and substance acceptable to the Lender: 
 (i) a copy of the Certificate of Incorporation for the Borrower, duly certified by the
Secretary of State of the State of Delaware; 
 (ii) a copy of the Bylaws for the Borrower, duly certified by an officer of the Borrower;

 (iii) a current Certificate of Good Standing for the Borrower, duly issued by the Secretary of State of the State of Delaware; 

(iv) a copy of the Certificate of Authority to Transact Business in a Foreign State duly certified by the Secretary of State of the State of Minnesota;
and 
 (v) a copy of the resolutions of the board of directors of the Borrower authorizing the execution, delivery and performance of the Loan
Documents, duly certified by an officer of the Borrower. 
 (v) Permitted Liens: the permitted liens identified in Section 8(n)
hereof. 
  

 3 

 (w) Person: any individual, corporation, partnership, joint venture, limited liability company,
association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
 (x)
Premises: all premises where the Borrower conducts its business and has any rights of possession. 
 (y) Revolving Line of
Credit: the revolving line of credit established pursuant to Section 2 hereof. 
 (z) Revolving Line of Credit Expiration
Date: the earlier of (i) December 6, 2007, or (ii) the date on which the Lender terminates the Revolving Line of Credit hereunder. 
 (aa) Security Agreement: the Security Agreement of even date herewith executed by the Borrower, as debtor, in favor of the Lender, as secured party, pursuant to which the Borrower has granted to the Lender a first priority security
interest in and to the Collateral to secure, among other things, payment of the Note. 
 (bb) Security Documents: collectively, the
Security Agreement and any other document securing payment of the Note and the other obligations of the Borrower to the Lender. 
 (cc)
Subsidiary: means any corporation of which more than 50% of the outstanding shares of capital stock having general voting power under ordinary circumstances to elect a majority of the board of directors of such corporation, irrespective of
whether or not at the time stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency, is at the time directly or indirectly owned by the Borrower, by the Borrower and one or more other
Subsidiaries, or by one or more other Subsidiaries. 
 (dd) Total Fixed Charges: the sum of the Borrower’s interest expense,
current maturities of long-term debt, current maturities of capital leases, lease expenses, declared and paid preferred stock dividends and unfunded Capital Expenditures. 
 (ee) UCC: means the Uniform Commercial Code as in effect from time to time in the State of Minnesota as the state whose laws shall govern this Agreement, or in any other state whose laws are held to govern this
Agreement or any portion hereof. 
 2. REVOLVING LINE OF CREDIT. The Lender agrees, on the terms and subject to the conditions herein set forth, to
make Advances to the Borrower under the Revolving Line of Credit (each an “Advance”) from time to time from the date all of the conditions set forth in Section 6 hereof are satisfied to the Revolving Line of Credit Expiration Date, in
an aggregate amount not to exceed at any time outstanding the Borrowing Base. Notwithstanding anything to the contrary contained herein, the Lender shall have no obligation to make an Advance if, after giving effect to such requested Advance, the
outstanding and unpaid Advances would exceed the Borrowing Base. The Borrower’s obligation to pay the Advances under this Section shall be evidenced by the Note and shall be secured by the Security Documents. Within the limits set forth in this
Section and in the Note, the Borrower may borrow, prepay and reborrow. Reference is hereby made to the Note for the terms thereof relating to, among other things, maturity, pricing and repayment schedule. 
  

 4 

 3. MANNER OF BORROWING. Each time the Borrower desires to obtain an Advance pursuant to Section 2 hereof, the
Borrower shall request such Advance either orally or in writing. Each such oral or written request must specify the date of the requested Advance and the amount thereof. At the request of the Lender, an oral request must be confirmed in writing by
the Borrower within three (3) Banking Days of such request. 
 4. PAYMENTS. The Lender will have the right to pay accrued interest or principal
on the Notes and any and all other amounts due and payable under the Loan Documents by debiting any account of the Borrower at the Lender or by making an Advance against the Revolving Line of Credit, without further authorization from the Borrower.

 5. COMMITMENT FEE. The Borrower shall pay to the Lender a fee (the “Commitment Fee”) in an amount determined by applying a rate of
one-quarter of one percent (0.25%) per annum to the average daily excess of the Revolving Line of Credit over the Maximum Line. The Commitment Fee shall be payable to the Lender quarterly in arrears on each
January 1, April 1, July 1 and October 1 during the term hereof and on the Revolving Line of Credit Expiration Date. 
 6.
CONDITIONS PRECEDENT. As a condition precedent to the extension by the Lender of the Revolving Line of Credit, the following agreements, documents and other items shall have been executed and/or delivered to the Lender by the party indicated,
each of which documents, agreements and other items shall be in form and substance acceptable to the Lender: 
 (a) This Agreement, properly
executed by the Borrower and the Lender. 
 (b) The Note, properly executed by the Borrower. 
 (c) A Compliance Certificate properly completed and executed by the Borrower, indicating that the Borrower is in compliance with all covenants set forth
herein as of the date hereof. 
 (d) A Borrowing Base Certificate, properly completed and executed by the Borrower, indicating that the
Borrowing Base exceeds the amount of the initial Advance as of the date hereof. 
 (e) Current searches of appropriate filing offices showing
that (i) no state or federal tax liens have been filed and remain in effect against the Borrower, (ii) no financing statements or assignments of patents, trademarks or copyrights have been filed and remain in effect against the Borrower
except those financing statements and assignments of patents, trademarks or copyrights relating to Permitted Liens or to liens held by Persons who have agreed in writing that upon receipt of proceeds of the Note, they will deliver UCC releases
and/or terminations and releases of such assignments of patents, trademarks or copyrights satisfactory to the Lender, and (iii) the Lender has duly filed all financing statements necessary to perfect its interest in and to the Collateral, to
the extent such interest is capable of being perfected by filing. 
  

 5 

 (f) The Security Documents, properly executed by the parties thereto. 
 (g) Certificates of the insurance required hereunder and under the Security Documents, with all hazard insurance containing a lender’s loss payable
endorsement in the Lender’s favor and with all liability insurance naming the Lender as an additional insured. 
 (h) A Secretary
Certificate for the Borrower certifying as to (i) the resolutions authorizing the execution, delivery and performance of the Loan Documents to which it is a party, (ii) the Borrower’s certificate of incorporation and bylaws, and
(iii) the signatures of the Borrower’s officers and agents authorized to execute and deliver the Loan Documents to which it is a party and other instruments, agreements and certificates, including Advance requests, on the Borrower’s
behalf. 
 (i) The Organizational Documents. 
 (j) Payment of the fees and commissions due through the date of the initial Advance and expenses incurred by the Lender through such date and required to be paid by the Borrower under Section 11(b) hereof,
including all legal expenses incurred through the date of this Agreement. 
 (k) Payment of the fully-earned, non-refundable origination fee
in the amount of $5,000. 
 (l) Such other documents as the Lender in its sole discretion may require. 
 In addition to the foregoing, the obligation of the Lender to make any Advance under Section 2 hereof shall be subject to the further conditions precedent that on
the date of such Advance: 
 (a) the representations and warranties contained in Section 7 hereof are true and correct on and as of the date
of such Advance as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date; and 
 (b) no event has occurred and is continuing, or would result from such Advance, which constitutes an Event of Default. 
 7.
REPRESENTATIONS. In order to induce the Lender to extend the Revolving Line of Credit and make Advances hereunder, the Borrower hereby warrants and represents to the Lender as follows: 
 (a) Borrower’s Existence and Power. The Borrower is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware and has all requisite power and authority to carry on its business as now conducted and as presently proposed to be conducted. The Borrower is duly qualified to do business in each jurisdiction where the nature of its business
makes such qualification necessary and where the failure to so qualify would materially adversely affect the Borrower’s financial condition, business, properties or assets. The Borrower’s organizational identification number is DE 3963071
and its tax identification number is 27-0074530. 
  

 6 

 (b) Authority of the Borrower. The Borrower has full power and authority to execute and deliver
the Loan Documents and to incur and perform its obligations thereunder; the execution, delivery and performance by the Borrower of the Loan Documents will not violate any provision the Organizational Documents of the Borrower or of any law, rule,
regulation or court order or result in the breach of, constitute a default under, or create or give rise to any lien under, any indenture or other agreement or instrument to which the Borrower is a party or by which the Borrower or its property may
be bound or affected. 
 (c) Enforceability Against the Borrower. Each of the Loan Documents constitutes the legal, valid and binding
obligation of the Borrower enforceable in accordance with their terms (subject, as to enforceability, to limitations resulting from bankruptcy, insolvency and other similar laws affecting creditors’ rights generally). 
 (d) Financial Condition. The financial statements of the Borrower furnished to the Lender in connection with this Agreement are complete and
correct in all material respects and fairly present the financial condition of the Borrower and at the dates of such statements. Since the most recent set of financial statements delivered by the Borrower to the Lender, there have been no material
adverse changes in the financial condition of the Borrower. 
 (e) Litigation. There is no action, suit or proceeding pending or, to
the knowledge of the Borrower, threatened against or affecting the Borrower which, if adversely determined, would have a material adverse effect on the condition (financial or otherwise), business, properties or assets of the Borrower or which would
question the validity of the Loan Documents, or impair the ability of the Borrower to perform its obligations under the Loan Documents. 
 (f)
Licenses. The Borrower possesses adequate licenses, permits, franchises, patents, copyrights, trademarks and trade names, or rights thereto, to conduct its business substantially as now conducted and as presently proposed to be conducted
except where the failure to do so cannot reasonably be determined to materially adversely affect the Borrower’s financial condition, business, properties or assets. 
 (g) Default. The Borrower is not in default of a material provision under any agreement, instrument, decree or order to which it is a party or by which it or its property is bound or affected. 
 (h) Consents. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any governmental
authority or any third party is required in connection with the execution and delivery of the Loan Documents, or any of the agreements or instruments herein mentioned relating to the Revolving Line of Credit to which the Borrower is a party or the
carrying out or performance of any of the transactions required or contemplated hereby or thereby or, if required, such consent, approval, order or authorization has been obtained or such registration, declaration or filing has been accomplished or
such notice has been given prior to the date hereof. 
  

 7 

 (i) Taxes. The Borrower has filed all tax returns required to be filed and either paid all taxes
shown thereon to be due, including interest and penalties, which are not being contested in good faith and by appropriate proceedings, or provided adequate reserves for payment thereof, and the Borrower has no information or knowledge of any
objections to or claims for additional taxes in respect of federal income or excess profits tax returns for prior years. 
 (j) Ownership
of Property; Liens. The Borrower has good and marketable title to its real properties and good and sufficient title to the Collateral and its other property, free and clear of all mortgages, liens, security interests and encumbrances, except the
Permitted Liens. 
 (k) Judgments. There are no judgments outstanding or docketed against the Borrower. 
 (1) Leases. The Leases are in full force and effect as of the date hereof and neither the Borrower nor any Landlord is in default under any of the
terms thereof. 
 (m) Subsidiaries. Except as set forth on Schedule 7(m) attached hereto, the Borrower has no Subsidiaries.

 (n) Rights to Payment. Each right to payment and each instrument, document, chattel paper and other agreement constituting or
evidencing Collateral is (or, in the case of all future Collateral, will be when arising or issued) the valid, genuine and legally enforceable obligation, subject to no defense, setoff or counterclaim, of the account debtor or other obligor named
therein or in the Borrower’s records pertaining thereto as being obligated to pay such obligation. 
 8. COVENANTS OF THE BORROWER. On and after
the date hereof and until the payment in full of the Note, and the performance of all other obligations of the Borrower hereunder, the Borrower agrees that, unless the Lender shall otherwise consent in writing: 
 (a) Financial Statements. The Borrower shall deliver or cause to be delivered to the Lender the following: 
 (i) as soon as available and in any event within one hundred twenty (120) days after the end of each fiscal year of the Borrower, audited financial
statements of the Borrower (balance sheet, income statement and statement of cash flow) for such year, all in reasonable detail and prepared in accordance with GAAP by an independent certified public accountant selected by the Borrower and
reasonably acceptable to the Lender; 
 (ii) as soon as available and in any event within forty-five (45) days after the end of each
fiscal quarter of the Borrower, internally prepared financial statements of the Borrower (balance sheet, income statement and statement of 

  

 8 

 
cash flow) for such month and year-to-date, all in reasonable detail and prepared in accordance with GAAP, together with a Compliance Certificate (which
certificate shall include detailed inventory, receivables, payables and collection reports), certified to the Lender by an authorized agent of the Borrower; 
 (iii) as soon as available and in any event within thirty (30) days after the end of each calendar month, a Borrowing Base Certificate, certified to the Lender by an authorized agent of the Borrower; and

 (iv) from time to time, such further information regarding the business, operations, affairs, financial and other condition of the Borrower
and/or the Collateral and/or any of its other property and/or any Premises as the Lender may reasonably request. 
 (b) Taxes and
Claims. The Borrower shall pay and discharge all taxes, assessments and governmental charges or levies imposed upon them or upon its income or profits, or upon any of its assets or properties, prior to the date on which penalties attach thereto,
and all lawful claims which, if unpaid, might become a lien or charge upon the Collateral or any other property of the Borrower. 
 (c)
Insurance. The Borrower shall maintain insurance coverage with respect to the Collateral with responsible insurance companies licensed to do business in the States of Minnesota and Delaware and as otherwise required by the Security Documents.
The Borrower shall furnish to the Lender written evidence as to the insurance maintained by the Borrower. 
 (d) Maintenance of Existence;
Conduct of Business. The Borrower shall preserve all of its rights, privileges and franchises necessary or desirable in the normal conduct of its business; conduct its business in an orderly, efficient and regular manner; and shall not
liquidate, merge, dissolve, suspend operations, or sell all or substantially all of its assets. 
 (e) Maintenance of Properties. The
Borrower shall keep all of its assets and properties in good working order and condition, ordinary wear and tear and casualty losses excepted. 
 (f) Compliance with Applicable Laws. The Borrower shall comply with the requirements of all applicable state and federal laws, and of all rules, regulations and orders of any governmental or other authority or agency, a breach of
which would materially and adversely affect its business or credit, except where contested in good faith and by proper proceedings. 
 (g)
Litigation. The Borrower shall promptly give to the Lender notice in writing of all litigation and of all proceedings by or before any court or governmental or regulatory agency affecting the Borrower, except litigation or proceedings which,
if adversely determined, would not materially affect the financial condition or business of the Borrower. 
  

 9 

 (h) Access to Books and Inspection. The Borrower shall at all times keep proper books of record
and accounts for itself, and, upon request of the Lender and upon reasonable notice, the Borrower shall provide any duly authorized representative of the Lender access during normal business hours to, and permit such representative to examine, copy
or make extracts from, any and all books, records and documents in the Borrower’s possession or control relating to its affairs, and to inspect any of its facilities and properties; provided, however, that the Lender shall treat all such books
and records confidential and shall only be permitted to disclose the information contained therein to its legal counsel, its independent public accountants, any participating banks, or in connection with any action to collect on any of the Note or
to enforce this Agreement or the documents related hereto, or as otherwise permitted or required by law. 
 (i) Access. The Borrower
shall grant to the Lender’s agents access to any Premises at any reasonable time upon reasonable notice in order to inspect the Borrower’s property and business. 
 (j) Transfer of Collateral. The Borrower shall not sell, dispose of, lease, mortgage, assign, sublet or transfer any of its right, title or interest in or to the Collateral without the prior written consent of
the Lender, except as expressly permitted under the Security Agreement. 
 (k) Leases. The Borrower shall timely comply with all of its
obligations under the Leases and will immediately notify the Lender if the Borrower amends, modifies or terminates any Lease. 
 (1)
Deposit Account. The Borrower shall maintain at all times a deposit account at the Lender. 
 (m) Account Verification. The
Lender may at any time and from time to time send or require the Borrower to send requests for verification of Accounts or notices of assignment to account debtors and other obligors. The Lender may also at any time and from time to time during
telephone account debtors and other obligors to verify Accounts. 
 (n) Liens. The Borrower will not create, incur or suffer to exist
any mortgage, deed of trust, pledge, lien, security interest, assignment or transfer upon or of any of its assets, now owned or hereafter acquired, to secure any indebtedness; excluding, however, from the operation of the foregoing, the following
(collectively, “Permitted Liens”): 
 (i) mortgages, deeds of trust, pledges, liens, security interests and assignments in existence
on the date hereof and listed in Schedule 8(n) hereto, securing indebtedness for borrowed money permitted under Section 8(o) hereof; 
 (ii) liens and security interests created by the Security Documents; and 
 (iii) purchase money security interests relating to the
acquisition of equipment not exceeding the lesser of cost or fair market value thereof. 
  

 10 

 (o) Indebtedness. The Borrower will not incur, create, assume or permit to exist any indebtedness
or liability on account of deposits or advances or any indebtedness for borrowed money or letters of credit issued on the Borrower’s behalf, or any other indebtedness or liability evidenced by notes, bonds, debentures or similar obligations,
except: 
 (i) indebtedness arising hereunder; 
 (ii) indebtedness of the Borrower in existence on the date hereof and listed in Schedule 9(o) hereto; 
 (iii)
indebtedness of the Borrower which is unsecured and is incurred in the ordinary course of the Borrower’s business (such as accounts payable), but specifically excluding any such indebtedness for borrowed money; and 
 (iv) indebtedness relating to Permitted Liens. 
 (p) Guaranties. The Borrower will not assume, guarantee, endorse or otherwise become directly or contingently liable in connection with any obligations of any other Person, except: 
 (i) the endorsement of negotiable instruments by the Borrower for deposit or collection or similar transactions in the ordinary course of business; and

 (ii) guaranties, endorsements and other direct or contingent liabilities in connection with the obligations of other Persons, in existence
on the date hereof and listed in Schedule 9(p) hereto. 
 (q) Subsidiaries. The Borrower will not create or permit to exist any new
Subsidiary. 
 (r) Consolidation and Merger; Asset Acquisitions. The Borrower will not consolidate with or merge into any Person.

 (s) Financial Covenant. The Borrower shall achieve a Fixed Charge Coverage Ratio as of the end of each fiscal year of the Borrower
of not less than 1.10 to 1.00 based on the immediately prior 12-month period. 
 9. EVENTS OF DEFAULT. As used herein, the term “Event of
Default” shall mean and include each or all of the following events: 
 (a) the Borrower shall fail to pay, when due, any amounts
required to be paid under any of the Note or any other indebtedness of the Borrower to the Lender or any third party, or any other such indebtedness now existing or hereafter arising and whether direct or indirect, due or to become due, absolute or
contingent, primary or secondary or joint or joint and several; 
 (b) the Borrower fails to comply with Section 8(s) hereof; 

 

 11 

 (c) except as set forth in (b) above, the Borrower shall fail to observe or perform any of the
covenants, conditions or agreements to be observed or performed by it under the Loan Documents or any credit or similar agreement between the Borrower and the Lender for a period of ten (10) calendar days after written notice, specifying such
default and requesting that it be remedied, given to the Borrower by the Lender; 
 (d) if the Borrower files a voluntary petition in
bankruptcy or is adjudicated a bankrupt or insolvent, or files any petition or answer seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the present or any future federal bankruptcy
act or any other present or future applicable federal, state or other statute or law, makes an assignment for the benefit of creditors, or seeks or consents to or acquiesces in the appointment of any trustee, receiver or liquidator of the Borrower
of all or any substantial part of its properties, the Collateral or any other property; 
 (e) if within sixty (60) days after the
commencement of any proceeding against the Borrower seeking any reorganization, arrangement, readjustment, liquidation, dissolution or similar relief under the present or any future federal bankruptcy act or any other present or future applicable
federal, state or other statute or law, such proceeding is not dismissed, or if, within sixty (60) days after the appointment, without the consent or acquiescence of the Borrower of any trustee, receiver or liquidator of the Borrower of all or
any substantial part of its properties, the Collateral or any other property, such appointment is not vacated or stayed on appeal or otherwise, or if, within sixty (60) days after the expiration of any such stay, such appointment is not
vacated; 
 (f) the Borrower shall be or become insolvent (whether in the equity or bankruptcy sense); 
 (g) any representation or warranty made by the Borrower in the Loan Documents shall prove to be untrue or misleading in any material respect, or any
statement, certificate or report furnished hereunder or under any of the foregoing documents by or on behalf of the Borrower shall prove to be untrue or misleading in any material respect on the date when the facts set forth and recited therein are
stated or certified; 
 (h) any material adverse change shall occur in the condition (financial or otherwise) of the Borrower which, in the
reasonable opinion of the Lender, increases its risk with respect to any of the Note, or the Lender otherwise in good faith deems itself insecure; 
 (i) all or any portion of the property subject to the Security Documents, or the legal, equitable or any other interest therein, shall be sold, transferred, assigned, leased or otherwise disposed of unless the prior written consent of the
Lender is first obtained, except as expressly permitted in the Security Documents; 
 (j) final judgment(s) for the payment of money in excess
of $5,000, individually or in the aggregate, shall be rendered against the Borrower and shall remain undischarged for a period of thirty (30) days during which execution shall not be effectively stayed; or 
 (k) any state or federal tax lien shall be filed against or with respect to the Borrower. 

  

 12 

 
Upon the occurrence of an Event of Default, the Lender may, at its option, exercise any and all of the following rights and remedies (in addition to any
other rights and remedies available to it): 
 (i) the Lender may, without notice, declare immediately due and payable all unpaid principal of
and accrued interest on the Note, together with all other sums payable hereunder or under the Note, and the Note shall thereupon be immediately due and payable without presentment or other demand, protest, notice of dishonor or any other notice of
any kind, all of which are hereby expressly waived; 
 (ii) the Lender may terminate the Revolving Line of Credit; 
 (iii) the Lender may refuse to make any Advances hereunder; 
 (iv) the Lender may exercise all of its rights or remedies under the Loan Documents; or 
 (v) the Lender
shall have all the right, in addition to any other rights provided by law, to enforce its rights and remedies under the documents related hereto. 
 10.
NOTICES. All notices, consents, requests, demands and other communications hereunder shall be given to or made upon the respective parties hereto at their respective addresses specified below or, as to any party, at such other address as may
be designated by it in a written notice to the other party. All notices, requests, consents and demands hereunder shall be effective when personally delivered or duly deposited in the United States mails, certified or registered, postage prepaid,
addressed as aforesaid. 
 IF TO THE LENDER: 
 Associated Bank, National Association 
 2655 Campus Drive 
 Plymouth, Minnesota 55441 
 Attn: Nicholas
Richardson 
 IF TO THE BORROWER: 
 Virtual Radiologic Corporation 
 5995 Opus Parkway, Suite 200 
 Minnetonka, Minnesota 55343 
 Attn: Mark
Marlow 
  

	11.	MISCELLANEOUS. 

 (a) Waivers, etc. No failure
on the part of the Lender to exercise, and no delay in exercising, any right or remedy hereunder or under applicable law or any document or agreement related hereto shall operate as a waiver thereof; nor shall any single or partial exercise of any
such right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
  

 13 

 (b) Expenses. The Borrower shall reimburse the Lender for any and all reasonable costs and
expenses, including without limitation attorneys’ fees, paid or incurred by the Lender in connection with (i) the preparation of the Loan Documents and any other document or agreement related hereto or thereto, and the transactions
contemplated hereby, which amount shall be paid prior to the making of any advance hereunder; (ii) the closing and consummation of the transactions contemplated hereby; (iii) the negotiation of any amendments, modifications or extensions
to any of the foregoing documents, instruments or agreements and the preparation of any and all documents necessary or desirable to effect such amendments, modifications or extensions; (iv) the enforcement by the Lender during the term hereof
or thereafter of any of the rights or remedies of the Lender under any of the foregoing documents, instruments or agreements under applicable law, whether or not suit is filed with respect thereto; and (v) costs incurred by the Lender in
connection with inspections and audits of the Collateral or other property of the Borrower. 
 (c) Amendments, etc. This Agreement, the
Note and the other Loan Documents may not be amended or modified, nor may any of their terms (including without limitation, terms affecting the maturity of or rate of interest on the Note) be modified or waived, except by written instruments signed
by the Lender and the Borrower. 
 (d) Successors. This Agreement shall be binding upon and inure to the benefit of the Borrower and
the Lender and their respective successors and assigns; provided, however, that the Borrower may not transfer or assign its right to borrow hereunder without the prior written consent of the Lender. 
 (e) Offsets. Nothing in this Agreement shall be deemed a waiver or prohibition of the Lender’s right of banker’s lien, offset, or
counterclaim, which right the Borrower hereby grants to the Lender. 
 (f) Counterparts. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing any such counterpart. 
 (g) Headings. The descriptive headings for the several sections of this Agreement are inserted for convenience only and shall not define or limit any of the terms or provisions hereof. 
 (h) Governing Law. This Agreement and the other Loan Documents shall be governed by and construed in accordance with the substantive laws (other
than conflict laws) of the State of Minnesota. The parties hereto hereby (a) consent to the personal jurisdiction of the state and federal courts located in the State of Minnesota in connection with any controversy related to this Agreement;
(b) waive any argument that venue in any such forum is not convenient, (c) agree that any litigation initiated by the Lender or the Borrower in connection with this Agreement or the other Loan Documents shall be 

  

 14 

 
venued in either the District Court of Hennepin County, Minnesota, or the United States District Court, District of Minnesota, Fourth Division; and
(d) agree that a final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. THE PARTIES WAIVE ANY RIGHT TO TRIAL BY
JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS. 
 IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed and delivered as of the day and year first above written. 
  

			
	BORROWER:
	
	VIRTUAL RADIOLOGIC CORPORATION
		
	By:	 	 /s/ Mark Marlow

	Its:	 	CFO

  

			
	STATE OF MINNESOTA	  	)
		  	)
	COUNTY OF HENNEPIN	  	)

 The foregoing instrument was acknowledged before me this 6th day of December, 2006, by Mark Marlow, the CFO of Virtual Radiologic Corporation, a Delaware corporation, for and on behalf of the corporation.

 [LENDER SIGNATURE PAGE FOLLOWS] 
 Cynthia Ann Story 
 Cynthia Ann Story 
 12-6-2006 
                         

 
  

 15 

 [LENDER SIGNATURE PAGE TO REVOLVING LOAN AGREEMENT 
 DATED DECEMBER 6, 2006] 
  

			
	LENDER:
	
	 ASSOCIATED BANK, NATIONAL
 ASSOCIATION

		
	By:	 	 /s/ Nicholas A. Richardson

		 	Nicholas A. Richardson, Vice President

  

 16

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