Document:

Unassociated Document

    EXHIBIT
      10.6

    CONSULTING
      AGREEMENT

    

    

    This
      Consulting Agreement (“Agreement”)
      is
      made as of 12/13/05, by and between the undersigned Key Person (as defined
      in
      the Master Transaction Agreement) (“Consultant”),
      and
      Basic Health Care Networks of Texas, L.P., a Texas limited partnership (the
      “Purchaser”),
      in
      reference to the following:

     

    RECITALS

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

    

    B. This
      Consulting Agreement is being entered into pursuant to a certain MASTER
      TRANSACTION AGREEMENT (“Master
      Transaction Agreement”),
      dated
      and effective as of December 13, 2005, is by and among Purchaser on the one
      hand, and 303 MEDICAL CLINIC, P.A., a Texas professional association, BRUCE
      WARDLE’, D.O., P.A., a Texas professional association, IBERIA MEDICAL CLINIC,
      P.A., a Texas professional association, KINGSLEY MEDICAL CLINIC, P.A., a Texas
      professional association, LAKE JUNE MEDICAL CENTER, P.A., a Texas professional
      association, NORTHSIDE MEDICAL CLINIC, P.A., a Texas professional association,
      O’CONNOR MEDICAL CENTER, P.A., a Texas professional association, and RED BIRD
      URGENT CARE CLINIC, P.A., a Texas professional association (collectively, the
      “Clinics”)
      and
      Dr. Bruce Wardlay. 

    

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

    

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

    

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

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

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

    

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

    

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

    

     

    AGREEMENT

     

    

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

     

    2.  Duties
      of Consultant. 

     

    

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

    

    2.2 The
      Services under this Agreement shall include: 

    

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

    

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

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

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

    

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

     

    3. Compensation. 

     

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

    

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

    

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

    

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

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

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

    

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

     

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

    

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

     

    4. Nondisclosure
      and Noninterference.

    

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

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

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

    

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

    

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

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

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

    

    5. Termination.

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

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

    

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

     

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

     

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

    

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

     

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

    

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

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

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

    

    7.  Representations
      and Warranties of Consultant. 

     

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

     

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

     

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

     

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

     

    If
      to
      Purchaser, addressed to:

    

    Robert
      S.
      Goldsamt, CEO

    Basic
      Health Care Networks of Texas, L.P. 

    4270
      Promenade Way, Suite 226

    Marina
      Del Rey, California 90292

    Facsimile:
      (310) 876-0791

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    With
      copies to:

    

    Kevin
      K.
      Leung, Esq.

    Richardson
      & Patel, LLP

    10900
      Wilshire Boulevard, Suite 500

    Los
      Angeles, California 90024

    Facsimile:
      (310) 208-1154

    

     If
      to
      the Obligor, addressed to:

    

    Eric
      Trager

    4080
      Naples Dr.

    Plano,
      Texas, 75093

    214
      797
      5002

     

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

    

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

     

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

    

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

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

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

    

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

    

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

    

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

    

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

    

    

    [Remainder
      of Page Left Blank Intentionally]

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

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

    

    

    

     

    CONSULTANT:

     

    

    

    /s/
      Eric
      Trager

    ___________________________

    Eric
      Trager 

    

    

    

    PURCHASER:

     

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

    

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

    

    

    By: /s/
      Robert Goldsamt

    ______________________________  

            
        Robert
      Goldsamt

    Chief
      Executive Officer

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    ANNEX
      3.1

    

    PERFORMANCE
      INCENTIVE BONUS

    

    

    

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

    

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

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

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

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

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

    50%
      of
      2006 Increased Profit over $6 million 

    

    

    

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

    

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

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

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

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

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

    50%
      of
      2007 Increased Profit over $6 million 

    

    

    
      
         

      

      
        12Unassociated Document

    EXHIBIT
      10.7

    CONSULTING
      AGREEMENT

    

    

    This
      Consulting Agreement (“Agreement”)
      is
      made as of 12/13/05, by and between the undersigned Key Person (as defined
      in
      the Master Transaction Agreement) (“Consultant”),
      and
      Basic Health Care Networks of Texas, L.P., a Texas limited partnership (the
      “Purchaser”),
      in
      reference to the following:

     

    RECITALS

    

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

    

    B. This
      Consulting Agreement is being entered into pursuant to a certain MASTER
      TRANSACTION AGREEMENT (“Master
      Transaction Agreement”),
      dated
      and effective as of December 13, 2005, is by and among Purchaser on the one
      hand, and 303 MEDICAL CLINIC, P.A., a Texas professional association, BRUCE
      WARDLE’, D.O., P.A., a Texas professional association, IBERIA MEDICAL CLINIC,
      P.A., a Texas professional association, KINGSLEY MEDICAL CLINIC, P.A., a Texas
      professional association, LAKE JUNE MEDICAL CENTER, P.A., a Texas professional
      association, NORTHSIDE MEDICAL CLINIC, P.A., a Texas professional association,
      O’CONNOR MEDICAL CENTER, P.A., a Texas professional association, and RED BIRD
      URGENT CARE CLINIC, P.A., a Texas professional association (collectively, the
      “Clinics”)
      and
      Dr. Bruce Wardlay. 

    

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

    

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

    

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

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

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

    

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

    

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

     

    AGREEMENT

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

     

    2.  Duties
      of Consultant. 

    

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

    

    2.2 The
      Services under this Agreement shall include: 

    

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

    

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

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

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

    

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

     

    3.  Compensation. 

     

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

    

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

    

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

    

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

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

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

    

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

     

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

     

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

      

    4. Nondisclosure
      and Noninterference.

    

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

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

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

    

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

    

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

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

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

    

    5. Termination.

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

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

    

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

     

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

     

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

    

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

     

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

    

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

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

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

    

    7. Representations
      and Warranties of Consultant. 

     

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

     

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

     

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

     

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

     

     

    If
      to
      Purchaser, addressed to:

    

    Robert
      S.
      Goldsamt, CEO

    Basic
      Health Care Networks of Texas, L.P. 

    4270
      Promenade Way, Suite 226

    Marina
      Del Rey, California 90292

    Facsimile:
      (310) 876-0791

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    With
      copies to:

    

    Kevin
      K.
      Leung, Esq.

    Richardson
      & Patel, LLP

    10900
      Wilshire Boulevard, Suite 500

    Los
      Angeles, California 90024

    Facsimile:
      (310) 208-1154

    

     If
      to
      the Obligor, addressed to:

    

    Kenny
      Myers

    8315
      Inwood rd.

    Dallas
      Texas, 75209

    Phone
      214
      797 5004

     

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

    

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

     

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

    

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

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

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

    

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

    

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

    

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

    

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

    

    [Remainder
      of Page Left Blank Intentionally]

    

    

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

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

     

    CONSULTANT:

     

    

    

    /s/
      Kenny
      Myers

    ___________________________

    Kenny
      Myers

    

    

    

    PURCHASER:

     

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

    

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

    

    

    By: /s/
      Robert Goldsamt

    ______________________________  

            
        Robert
      Goldsamt

    Chief
      Executive Officer

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    ANNEX
      3.1

    

    PERFORMANCE
      INCENTIVE BONUS

    

    

    

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

    

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

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

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

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

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

    50%
      of
      2006 Increased Profit over $6 million 

    

    

    

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

    

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

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

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

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

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

    50%
      of
      2007 Increased Profit over $6 million 

    

    

    

    
      
         

      

      
        12

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