Document:

Asset Management Agreement

 

ASSET MANAGEMENT AGREEMENT

 

This Asset Management Agreement is entered into as of March 31, 2002, by and between CrediTrends Technology Corporation, a California corporation ("CREDITRENDS" or "COMPANY"), and KingThomason Credit Card Services Corporation, a California corporation ("CLIENT"), with reference to the following facts:

 

A.  CLIENT is in the business of managing a sophisticated medical accounts receivable program (the "Program") for doctors, dentists and hospitals throughout the county that is designed to recover past due accounts receivable for health care providers and institutions, and CREDITRENDS is engaged in the business of managing consumer receivables.

 

B.  CLIENT desires to obtain the services of CREDITRENDS to service certain receivables, and CREDITRENDS desires to provide such services, pursuant to the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, the parties agree as follows:

 

1.  DEFINITIONS.For purposes of this Agreement, the following capitalized terms shall have the meanings hereinafter set forth:

 

	
Addendum 1

 
	
Shall mean Transaction Addendum 1 attached to this Agreement, which sets forth fees for the services described in this Agreement and the Exhibits to this Agreement.

 

	
Agent Code(s)

 
	
Shall mean the specific sub-set of digits of the credit card account numbers assigned when Credit Card Accounts are established, ensuring that a given Credit Card Account portfolio is unique from others contained within CREDITRENDS’ BIN.

 

	
Asset Management Fee

 
	
Shall mean the fee that CREDITRENDS charges for Scoring Raw Material Account portfolios under its proprietary models, and for fully servicing Raw Material Accounts. The Asset Management Fee is set forth in Addendum 1.

 

	
Asset Management Work Plan

 
	
Shall mean the plan set forth in this Agreement, in the Collection Work Plan, and in the Balance Transfer Work Plan.

 

	
Balance Transfer Work Plan

 
	
Shall mean the plan and agreement set forth in Exhibit A attached hereto.

 

	
BIN

 
	
Shall mean the "bank identification number" issued to CREDITRENDS by each Issuing Bank, within which all Credit Card Accounts in which CREDITRENDS has an interest are maintained and serviced. The BIN is represented by the first four digits of the credit card account number assigned when a Credit Card Account is established.

 

 

	
 Exhibit 10.11

	 	 	Page 1 of 7 Pages
	

	 

	
Collection Accounts

 
	
Shall mean those Raw Material Accounts identified through the Scoring process as accounts best suited to traditional collection efforts.

 

	
Collection Account Debtor

 
	
Shall mean the consumer specifically indebted on a particular Collection Account.

 

	
Collection Fee

 
	
Shall mean the contingent fee charged by CREDITRENDS for collection and recovery efforts on Collection Accounts, which is calculated on gross dollars recovered.

 

	
Collection Work Plan

 
	
Shall mean the plan set forth in Schedule 1 to the Collection Agreement attached hereto as Exhibit B.

 

	
Credit Card Account

 
	
Shall mean the account which is created when all or a portion of the balance outstanding on a Qualified Account is transferred onto a new credit card account issued by an Issuing Bank.

 

	
Credit Card Account Receivable

 
	
Shall mean the actual balance transferred from a Qualified Account onto a new credit card. It does not include any added fees associated with the issuance of the credit card, i.e., annual or application fees.

 

	
Credit Card Report Fee

 
	
Shall mean the fee charged by CREDITRENDS for production of monthly reports on Performing Credit Card Account portfolios.

 

	
Credit Card Servicing

 
	
Shall mean the process of maintaining Credit Card Accounts, which generally includes billing, payment processing, merchant charge processing, system processing, etc.

 

	
Credit Card Account Servicing Fee(s)

 
	
Shall mean the fees charged by CREDITRENDS on a per-account basis for Credit Card Servicing.

 

	
Credit Card Issue Date

 
	
Shall mean the date on which a Credit Card Account is established by the Issuing Bank and reported by the credit card processor.

 

	
Defaulted Accounts

 
	
Shall mean those Credit Card Accounts which have failed to make two of the first four payments due from the Credit Card Issue Date, or that are greater than ninety (90) days delinquent.

 

	
Exhausted Raw Material Accounts

 
	
Shall mean the Raw Material Accounts upon which efforts detailed under the Asset Management Work Plan have been expended. The term never applies to Raw Material Accounts that have participated in the balance transfer program and have become Credit Card Accounts.

 

	
Issuing Bank

 
	
Shall mean a bank issuing Credit Card Accounts pursuant to a co-brand or affiliate agreement with CREDITRENDS.

 

 

	
Exhibit 10.11

	 	 	Page 2 of 7 Pages
	

	 

	
Legal Collection Fee

 
	
Shall mean the contingent fee charged by CREDITRENDS for collection and recovery efforts of a Collection Account approved for legal recovery efforts. The Legal Collection Fee is set forth in Addendum 1.

 

	
Non-qualified Accounts

 
	
Shall mean those Raw Material Accounts that: (1) are held by bankrupt or deceased consumers; (2) contain outstanding balances of $300.00 or less, including accrued interest; (3) have previously been settled or repaid by the debtor; or (4) for which the debtor involved asserts fraud or forgery.

 

	
Performing Credit Card Accounts

 
	
Shall mean those Credit Card Accounts that have made at least two of the first four payments due from the Credit Card Issue Date, and that are not greater than ninety (90) days delinquent.

 

	
Qualified Accounts

 
	
Shall mean Raw Material Accounts that are determined through the Scoring process not to be Collection Accounts or Non-qualified Accounts.

 

	
Raw Material Accounts

 
	
Shall mean the whole portfolios of delinquent consumer accounts purchased in bulk, and which have not yet been subjected to the Scoring process.

 

	
Reserve Account

 
	
Shall mean the account maintained by an Issuing Bank, in which certain cash flows generated by Credit Card Accounts are held to protect the Issuing Bank against credit risk and potential loss.

 

	
Score/Scoring

 
	
Shall mean the process in which CREDITRENDS analyzes Raw Material Accounts.

 

 

2.  RAW MATERIAL ACCOUNT MANAGEMENT

 

a.  Placement of Raw Material Accounts. CLIENT may offer to place its portfolios of Raw Material Accounts with CREDITRENDS under the terms of this Agreement. CREDITRENDS may, at its discretion, accept such Raw Material Accounts for inclusion in the programs described herein. CREDITRENDS shall have the opportunity to review each portfolio of Raw Material Accounts prior to acceptance. 

 

b.  Raw Material Account Scoring. CREDITRENDS shall Score the Raw Material Accounts placed with it by CLIENT. Scoring entails identifying individual Raw Material Accounts as Non-qualified Accounts, Collection Accounts and Qualified Accounts. CREDITRENDS may, at its discretion, use third party resources in its efforts to Score the Raw Material Accounts. Within twenty one (21) days after CREDITRENDS’s receipt of all customary information about a portfolio of Raw Material Accounts, CREDITRENDS shall advise CLIENT of its findings from the Scoring process and shall deliver to CLIENT a list of Non-qualified Accounts, Qualified Accounts, and Collection Accounts either on paper, diskette, or both. Each report shall explain why any account is classified as a Non-qualified Account. 

	
 Exhibit 10.11

	 	 	Page 3 of 7 Pages
	

	 

 

3.  ASSET MANAGEMENT FEE.CREDITRENDS shall use commercially reasonable efforts to perform the services described in the Asset Management Work Plan. CLIENT shall pay to CREDITRENDS an Asset Management Fee at the time each Raw Material Account is assigned and accepted by CREDITRENDS for the purpose of Scoring Raw Material Accounts. No Scoring of a Raw Material Account shall commence until the full Asset Management Fee for such Raw Material Account has been received by CREDITRENDS.

 

4.  COLLECTION ACCOUNTS.A Collection Agreement and Collection Work Plan are attached hereto as Exhibit B. The Collection Agreement, Collection Work Plan and related definitions shall apply only if CLIENT and CREDITRENDS agree that CLIENT will place accounts with CREDITRENDS for purposes of collection. If any accounts are so placed with CREDITRENDS, then upon acceptance by CREDITRENDS, such accounts shall be deemed Collection Accounts and shall be worked under the terms of the Collection Agreement and the Collection Work Plan. 

 

5.  QUALIFIED ACCOUNTS 

 

a.  Credit Card Accounts. CLIENT may offer to place with CREDITRENDS some or all of its Qualified Accounts, as identified in the Raw Material Scoring process, for treatment under the Balance Transfer Work Plan. Under the Balance Transfer Work Plan, consumers may apply to transfer all or a portion of their existing account balances to new Credit Card Accounts maintained by an Issuing Bank. Each consumer who meets the underwriting criteria of CREDITRENDS and the Issuing Bank, and any other requirements established from time to time by CREDITRENDS, shall be permitted to establish a Credit Card Account and transfer such consumer’s account balance, or such portion permitted by CREDITRENDS, to such Credit Card Account. The remaining portion of the account balance shall be written off and forgiven by CLIENT. CREDITRENDS shall have no further obligation as to such remaining portion. CREDITRENDS represents and warrants that it has a binding agreement with an Issuing Bank for the transfer of Qualified Accounts to Credit Card Accounts. Each Credit Card Account shall be distinguished by (i) a BIN maintained by the Issuing Bank for the purpose of this Agreement, and (ii) an Agent Code and customer account number. At the time of the balance transfer CLIENT shall transfer title to the Qualified Account to CREDITRENDS. As long as a Credit Card Account is a revolving account and the account holder timely pays his or her obligations thereunder, the account holder may use the Credit Card Account to acquire additional credit up to that holder’s credit limit as established by CREDITRENDS and the Issuing Bank. CLIENT may refer account debtors to CREDITRENDS, but all credit card account applications shall be issued by CREDITRENDS. Credit Card Accounts shall be established only if underwriting standards which are adopted and administered by the Issuing Bank and CREDITRENDS are met by consumers. 

	
 Exhibit 10.11

	 	 	Page 4 of 7 Pages
	

	 

 

b.  Credit Card Account Receivable. CLIENT shall transfer to CREDITRENDS title to Accounts that are to be converted to Credit Card Accounts, without recourse to CLIENT, in accordance with the Balance Transfer Work Plan.

 

6.      TERMINATION RIGHTS.Subject to earlier termination with respect to Collection Accounts in accordance with Exhibit B, either party may terminate this Agreement on not less than ninety (90) days’ written notice to the other party, provided, however, that (i) all financial obligations which accrue prior to such termination, and any indemnification obligation arising hereunder, shall survive the termination of this Agreement, (ii) CLIENT shall continue to pay all continuing Credit Card Account Servicing Fee(s) until all Performing Credit Card Accounts have been liquidated or sold, and (iii) CREDITRENDS shall continue to pay CLIENT with respect to its Participation Interest, until such time as all Performing Credit Card Accounts have been liquidated or sold. 

 

8.  NO GUARANTEES.Neither party has made any guarantee or assurance regarding (i) the performance, quality, or condition of any Credit Card Account, Raw Material Account, Collection Account, Qualified Account, or any other account described herein, (ii) the results of CREDITRENDS’ efforts hereunder, (iii) the acceptance by consumers of CREDITRENDS’ programs hereunder, or (iv) the ability of such account holders to meet the underwriting standards necessary to establish a Credit Card Account. CLIENT hereby releases CREDITRENDS from any liability if any such account or accounts fail to perform or fail to meet the expectations of CLIENT. 

 

9.  INDEMNIFICATION.CREDITRENDS and CLIENT (each an "Indemnifying Party") shall each indemnify, defend and hold the other party (the "Indemnified Party") harmless from and against any and all actions, claims, judgments, losses, liabilities, demands, damages, costs, and expenses (including without limitation reasonable attorneys’ fees) incurred or suffered by the Indemnified Party which arise directly or indirectly from, result from or relate to any action or failure to take action by the Indemnifying Party.

 

10.  HEADINGS.The subject headings used in this Agreement are included for convenience only, and shall not affect the construction or interpretation of any of its provisions.

 

11.  ENTIRE AGREEMENT.This Agreement, together with the exhibits hereto, constitutes the full and complete agreement between the parties, and supersedes any and all prior agreements and representations, whether written or oral.

 

12.  MODIFICATIONS AND WAIVER.No supplement, modification or amendment of this Agreement or any Exhibit hereto shall be binding unless executed in writing by a duly authorized representative of the party sought to be bound. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver of any provision constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

	
 Exhibit 10.11

	 	 	Page 5 of 7 Pages
	

	 

 

13.  NOTICES.Any notice required or permitted to be given hereunder or under any Exhibit hereto shall be given by either: (i) depositing the same in the United States Mail, postage prepaid, registered or certified, return receipt requested, or (ii) by depositing the same with a recognized overnight courier service for delivery the following day, or (iii) by transmitting the same via facsimile to the other party, provided the recipient party acknowledges receipt of same. All notices shall be addressed as follows, or to such other addresses as may be updated from time to time:

 

	
    If to CREDITRENDS:

 

 

 

    

    If to CLIENT:

 
	
CrediTrends Technology Corporation

5118 Robert J Mathews Parkway

El Dorado Hills, California 95762

Attention: Henry Mauriss

 

KingThomason Credit Card Services, Inc.

3180 Crow Canyon Place, Suite 205

San Ramon, CA 94583

Attention: Thomas King

 

14.  ASSIGNMENT.Neither CLIENT nor CREDITRENDS shall assign, transfer or delegate in any manner any of its duties, responsibilities or obligations hereunder or under any Exhibit hereto without the written consent of the other party.

 

15.  GOVERNING LAW.This Agreement and all of the Exhibits hereto shall be governed by and construed in accordance with the laws of the State of California.

 

16.  COUNTERPARTS.This Agreement and all of the Exhibits hereto may be executed in counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument.

 

17.  ARBITRATION.In the event of any dispute or controversy between the parties with respect to any of the matters set forth herein or the matters set forth in any Exhibit hereto, then such dispute or controversy shall be submitted to binding arbitration, to be conducted in El Dorado County, California, pursuant to the then-prevailing rules and regulations of the American Arbitration Association or other arbitration association mutually agreed upon. In such arbitration, the prevailing party shall be entitled, in addition to any award made in such proceeding, to recover all of its costs and expenses incurred in connection therewith, including, without limitation, reasonable attorneys’ fees.

 

18.  CONSTRUCTION.Whenever possible, each provision of this Agreement and each Exhibit hereto shall be interpreted in such a manner as to be effective or valid under applicable law. If, however, any provision of this Agreement or in any Exhibit hereto shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement or such Exhibit.

	
 Exhibit 10.11

	 	 	Page 6 of 7 Pages
	

	 

 

19.  NO EXCLUSIVITY. The relationship between the parties hereunder and under the Exhibits hereto shall be non-exclusive. Nothing contained herein or in any Exhibit hereto shall prevent either party from entering into similar agreements with other parties for accounts not placed hereunder.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

	CREDITRENDS TECHNOLOGY CORPORATION, a California corporation	 	 	KINGTHOMASON CREDIT CARD SERVICES, INC., a California corporation
	/s/ Henry Mauriss, President 	 	 	/s/ Thomas King
	

Henry Mauriss	 	 	

Thomas King, President
	 	 	 	 
	
"CREDITRENDS"
	 	 	
"CLIENT"

	 	 

 

	
  Exhibit 10.11

	 	 	Page 7 of 7 PagesStrategic Marketing Agreement

 

Strategic Marketing Agreement

This Strategic Marketing Agreement (the "Agreement") is entered into as of the 1st day of March 2004, (the "Effective Date") between KingThomason Credit Card Services, Inc. ("KTCC"), a California corporation, having its principal place of business located at 2600 Old Crow Canyon Rd. Suite 201, San Ramon, California 94583 and Medical Capital Corporation ("MCC"), a Nevada corporation, having its principal place of business located at 2100 South State College Blvd. Anaheim, California 92806.

 

WHEREAS, KTCC is in the business of managing a sophisticated medical accounts receivable program (the "Program") for doctors, dentists, hospitals and other medical entities throughout the country that is designed to recover past due private-pay accounts receivable for health care providers and institutions. 

 

WHEREAS, MCC is in the business of representing specific health care providers and institutions in the United States whose high priority is to address the accelerating issue of expanding past due accounts receivable. 

 

WHEREAS, KTCC and MCC desire to establish an ongoing business relationship as represented by this Agreement whereby KTCC and MCC will cooperate jointly in the marketing, sale and on-going support of each other’s Programs. 

 

NOW, THEREFORE, the parties hereto agree as follows: 

	Section 1.	Independent Contractor. This Agreement does not constitute either party as a partner, joint venture, employee, or legal representative of the other party for the purpose of this Agreement. Neither party to this Agreement has granted any right or authority to assume or create any obligation or responsibility, expressed or implied, on behalf of or in the name of the other party or to bind the other party in any manner. At all times, both parties, in fulfilling their obligations pursuant to this Agreement, shall be acting as independent contractor, and each party hereby indemnifies and agrees to hold the other party harmless from any liability, which may be asserted against the other by any third party or Member as the result of any act or failure to act by either party to this Agreement in connection with its duties and obligations referenced herein.

	
Exhibit 10.12

Page 1of 7 Pages

	 	 	 
	

	 

	Section 2.	Confidential Non-Disclosure & Non-Circumvention. Each of the parties to this Agreement, separately and individually, for themselves, their employees, contractors and their associates, hereby agree and covenant that neither party nor its corporation, subsidiaries, employees, principals, agents, consultants or assigns will disclose any individual or entity introduced by the other or the form or substance of any documentation, information, or practice of the other in connection with any and all transactions entered into between the undersigned parties and their respective clients, principals, purchasers, sellers, or agents, except in the furtherance of a mutually beneficial transaction or without prior written consent of the other party. Both parties to this agreement warrant to each other that they will not disclose any information encompassed in this section without prior written acknowledgement to each other. By their signature below and execution of this Agreement, each party hereto does hereby agree and covenant not to circumvent in any way the other party to this Agreement by using any individual or entity introduced by the other parties in business dealings from the Effective Date of this Agreement, as referenced herein above, with respect to transactions entertained by the parties to this Agreement, including new, follow-up, repeat, extended, or re-negotiated transactions subsequent to the initial transaction. This section of the Agreement shall remain in effect for one (1) year after the termination of this Agreement, unless cancellation is jointly agreed upon in writing.

	Section 3.	Responsibilities & Fees. 

	  	3.1	MCC understands and agrees that its responsibility is to support and promote KTCC's Program with its clients and in any other areas where such promotion would be beneficial to both or either party to this Agreement. Furthermore, MCC agrees to dedicate reasonable resources to the sales and marketing support efforts of KTCC's Program with its clients and others, as appropriate. Such support will include, but not be limited to, correspondences sent to clients on a regular basis, arrange and attend meetings with MCC clients and/or their entities to promote and initiate the KTCC Program 

		3.2	KTCC and MCC agree that MCC will receive commissions, the terms of which are represented in Exhibit A, attached hereto and by reference made a part hereof. 

	 		

	
Exhibit 10.12

Page 2 of 7 Pages

	 	 	 
	

	 

		3.3.	KTCC understands and agrees its responsibility is to manage its medical accounts receivable Program for doctors, dentists and hospitals and other medical entities throughout the country with an objective to recover past due accounts receivable for health care providers and institutions in accordance with which ever service agreement specific clients choose.

	 	3.4.	KTCC and MCC agree that MCC will have the right to market in all states of the United States of America.

		Section  4. 	Controlling Law. This Agreement shall be construed and controlled by the laws of the State of California and venue will be Orange County, California. Any controversies or disputes arising out of or relating to this Agreement shall be resolved by binding arbitration in accordance with the then-current Commercial Arbitration Rules of the American Arbitration Association. 

	Section  5.	Term of Agreement and Termination

		5.1.	The Effective Date of this Agreement shall be as referenced herein above and shall continue until canceled by either party as referenced below. 

	 	5.2.	Insolvency. This Agreement shall be terminated in the event that either party becomes insolvent, files a petition in bankruptcy, files a petition seeking reorganization, arrangement, or any similar relief available at law regarding insolvency or relief from debtors, or makes an assignment for the benefit of creditors, or if a receiver, trustee, or similar officer is appointed for the business or property of either party.

	 	5.3.	MCC default. This Agreement may be terminated by KTCC in the event that MCC has not performed a material covenant or has otherwise breached any material term of this Agreement, (i) upon receipt of written notice thereof, if the nonperformance or breach is incapable of cure, or (ii) upon the expiration of thirty (30) days after date of written notice thereof, if the non-performance or breach is capable of cure and has not been cured.

	
Exhibit 10.12

Page 3 of 7 Pages

	 	 	 
	

	 

	 	5.4.	KTCC default. This Agreement may be terminated by MCC, in the event that KTCC has not performed a material covenant or has otherwise breached any material term of this Agreement, (i) upon receipt of written notice thereof, if the nonperformance or breach is incapable of cure, or (ii) upon the expiration of thirty (30) days after the date of written notice thereof, if the non-performance or breach is capable of cure and has not been cured.

	 	5.5.	Mutual agreement. This Agreement may be terminated upon mutual written agreement. 

 

	 	5.6.	Upon termination of this Agreement, MCC will be fully vested in the business that they have brought to KTCC, which KTCC has accepted in writing, that KTCC has completed, and that KTCC has or will receive revenue from said clients.

 

	Section 6.   	Warranties and Indemnification

	 	6.1.	KTCC will defend, indemnify and hold harmless from and against all damages and costs incurred by MCC arising from any misinformation provided MCC by KTCC or its agents that is subsequently provided to the MCC clients or others or the infringement of any proprietary rights in the KTCC service or marketing thereof as permitted hereunder. 

	 	6.2.	MCC shall defend, indemnify and hold KTCC harmless for and against all damages and costs incurred by KTCC arising from intentional improper independent actions by MCC.

Section 7.       Miscellaneous

	 	7.1.	KTCC and MCC each warrant to the other that to the best of its knowledge as of the Effect Date as first above written, there are no third party infringement claims with regard to the subject matter anticipated by this Agreement.

	 	7.2.	Each party to this Agreement represents and warrants that there exists no contracts, agreements or understandings which preclude, or would be violated by, its performance under this Agreement that has not been disclosed to KTCC in writing.

	
Exhibit 10.12

Page 4 of 7 Pages

	 	 	 
	

	 

	 	7.3.	In the event that arbitration is unsuccessful and litigation arises in connection with the enforcement of the terms of this Agreement, the prevailing party shall be entitled to the recovery from the other party of its reasonable court approved attorney fees and actual court costs incurred by the prevailing party in such litigation.

	 	7.4.	A waiver of any breach of any provision of this Agreement shall not be construed as a continuing waiver of other breaches of the same or other provisions of this Agreement.

	 	7.5.	Should any part or provision of this Agreement be held unenforceable or in conflict with the law of any competent U.S. jurisdiction, the validity of the remaining parts or provisions shall not be affected by such holding.

	 	7.6.	The headings used on the Sections and Paragraphs herein are for the convenience of reference only and do not form a part of this Agreement and shall not in any way affect the interpretation hereof.

	 	7.7.	No assignment of this Agreement or delegation of any rights or obligations hereunder may be made by either party without the prior written approval of the other. However, both parties shall have the right to transfer its rights and obligations hereunder to any entity that acquires all or substantially all of its equity. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the respective parties, their successors/assigns and representatives.

	 	7.8.	Notices. All notices must be in writing or confirmed in writing. Notices shall be deemed received and effective when placed in the hands of a reliable express courier, deposited in the U.S. mail, postage prepaid, certified or registered, return receipt requested, or sent by facsimile, if confirmation of receipt is requested and obtained, and addressed to MCC at 2100 South State College Blvd. Anaheim, CA 92608, to the Attention of its President. To KTCC at 2600 Old Crow Canyon Rd., Suite 201, San Ramon, California 94583, to the Attention of its President. The foregoing addresses may be changed by delivery of notice in accordance with this paragraph.

	
Exhibit 10.12

Page 5 of 7 Pages

	 	 	 
	

	 

	 	7.9.	Force Majeure. Neither party shall be liable to the other for failure or delay in the performance of a required obligation, if such failure or delay is caused by riot, fire, flood natural disaster or other similar cause beyond such party's control, provided that such party gives prompt notice of such condition and resumes its performance as soon as possible, and provided further that the other party may terminate this Agreement upon delivery of notice, if such condition continues for a period of ninety (90) days.

	 	7.10.	This Agreement, including any appendices, constitutes the entire Agreement between the parties relating to the subject matter hereof and supersedes all prior agreements and understandings. This Agreement may only be modified in writing and signed by authorized representatives of both parties. Agreements between the parties hereto relating to other matters remain unchanged and in full force.

	 	7.11	It is understood and agreed that the general rule that ambiguities are to be construed against the drafter shall not apply to this Agreement. In the event that any language of this Agreement is found to be ambiguous, each party to this Agreement will have the opportunity to present evidence as to the actual intent of the parties with respect to any such ambiguous language. 

Section 8.     Limitation of Liability. In no event shall either party to this Agreement be liable to the other for punitive, incidental, indirect, 

                      special or consequential damages of any kind, by the claims of third parties to and or KTCC and MCC.

Section 9.    This Agreement may be executed in two counterparts, each of which, or facsimile thereof, shall be deemed an original, legal and 

                      enforceable document. 

IN WITNESS WHEREOF, KTCC and MCC, through their duly authorized representatives, hereby execute this Agreement as of the Effective Date as first set forth above.

 

	Agreed: KingThomason Credit Card Services, Inc.	 	 	 Agreed: Medical Capital Corporation
	/s/ Thomas King            3/26/04	 	 	/s/ Adam Field            3/26/04
	

Signature                             Date	 	 	

Signature                Date
	Name        Thomas King
Title                  President	 	 	Name        Adam Field        
Title          Vice President of Development

                    

	
Exhibit 10.12

Page 6 of 7 Pages

	 	 	 
	

	 

EXHIBIT A

COMPENSATION RATES

Medical Capital Corporation will receive a five percent (5%) marketing concession fee on specific revenues received by KingThomason Credit Card Services, Inc. ("KTCC") that were derived from clients enrolled in KTCC's Program for the recovery of past due A/R. Such Medical Capital revenues will be calculated against the funds recovered through KTCC's Medical Accounts Receivable Credit Card Program for the duration of the Agreement.

Medical Capital will, in a timely manner, acknowledge in writing to KTCC, and KTCC must countersign the acknowledgement, all clients that it intents to do business with under this Program and receive compensation for under this agreement.

Such fees will be paid within 30 days following KTCC’s receipt of funds for client A/R services under KTCC's Program as referenced in the Agreement. 

Medical Capital Corporation agrees to pay all taxes or any fees that will be due or become due with regard to its participation in the specific performance of the Agreement hereto. This provision includes any such fees or taxes of any and every description that may currently be in affect, arise in the future or are imposed on past performance as a result of the receipt of any marketing concession fee(s). 

IN WITNESS WHEREOF, KingThomason Credit Card Services, Inc. and Medical Capital Corporation, through their duly authorized representatives, hereby execute this Agreement as of the Effective Date as first set forth above.

 

 

 

	Agreed: KingThomason Credit Card Services, Inc.	 	 	 Agreed: Medical Capital Corporation
	/s/ Thomas King            3/26/04	 	 	/s/ Adam Field            3/26/04
	

Signature                                Date	 	 	

Signature               Date
	Name                Thomas King
Title                  President	 	 	Name        Adam Field
Title          Vice President of Development

 

 

	
Exhibit 10.12

Page 7 of 7 Pages

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