Document:

David Ryon, M.D.
Chief Executive Officer
Image Technology Laboratories, Inc.
19 Blue Jay Way
Woodstock, NY 12498

Re: Letter of Intent

Dear Dr. Ryon:

This letter sets forth certain agreements and understandings pursuant to which
Mid Rockland Imaging Partners, Inc. ("MRI") and Image Technology Laboratories,
Inc. ("ITLI") are proceeding toward closing a business transaction.

Transaction. With respect to any transaction consummated between MRI and
ITLI, the parties agree as follows:

1. Structure of the Transaction. The transaction shall be structured to comply
with and is subject to all applicable (1) state and federal corporate and
securities laws, (2) state and federal tax laws, and (3) state and federal
health care laws.

2. Definitive Agreements; Closing Date. The parties agree to work toward
completion of a definitive purchase agreement related to ITLI's integrated
RIS/PACS product and equipment, a support services agreement related to ITLI's
integrated RIS/PACS product and equipment, a professional services agreement
related to the professional supervision and interpretation services at the
Kingston Diagnostic Center, and other definitive documents (collectively, the
"Definitive Agreements") within fifteen (15) days after execution of this letter
agreement. The Closing would occur upon satisfaction or waiver of all conditions
thereto set forth in the Definitive Agreements, but no later than May 1, 2002,
unless otherwise mutually agreed by the parties.

Definitive Agreements shall include the following provisions:

(a) MRI will purchase ITLI's integrated RIS/PACS product and equipment at fair
market value for use at MRI's Kingston Diagnostic Center.

(b) MRI and ITLI will enter into an agreement for ITLI to provide integrated
RIS/PACS product and equipment service and support at an agreed upon fee payable
by MRI, the cost of which would not begin until the second year
following full system acceptance by MRI as to functionality and performance.
ITLI's integrated RIS/PACS product and equipment service and support agreement
will include financial and non-financial terms customary in the industry.

<PAGE>

(c) With the exception of mammography, MRI will upgrade existing Kingston
Diagnostic Center diagnostic imaging equipment as necessary to become fully
digital by July 1, 2002, subject to availability or other limitations not within
MRI's control.

(d) ITLI will provide properly licensed professionals to provide all requisite
professional interpretation and supervision services at or for patients of
Kingston Diagnostic Center. ITLI will provide medical liability insurance for
and employee benefits to, such professionals. ITLI will be fully responsible for
all salaries, wages, benefits, income tax and social security withholding and
all similar financial requirements attributable to employment of or subcontracts
with such professionals. ITLI's relationship with MRI will be independent of the
relationship between Hudson Valley Radiology Associates and MRI. MRI will assist
in obtaining suitable professional supervision and interpretation coverage for
up to eight (8) weeks per year at ITLI's sole cost and expense. ITLI will give
MRI reasonable advance notice of any coverage needs.

(e) MRI's intent is to own and operate the new MR unit and to bill globally for
all services at the imaging center. The calculations regarding the distribution
of professional and technical revenues will be based on the weighted RVU (based
on the RBRVS system maintained by the Center for Medicare and Medicaid Services)
ratio for all services rendered at the Kingston Diagnostic Center. ITLI will pay
MRI a service fee equal to 10% of net professional revenues for the provision of
billing, collection, administrative and management services.

(f) Provided ITLI's integrated RIS/PACS product, equipment and support services
function to MRI's satisfaction (satisfaction to be based on mutually agreed upon
product, equipment and support services performance specifications and criteria
to be outlined in the Definitive Agreements) at the Kingston Diagnostic Center
and that ITLI and MRI are able to reach agreement regarding price, ITLI's
integrated RIS/PACS product and equipment will be purchased and installed for
use at MRI's New Paltz imaging facility by October 1, 2002, subject to agreement
by Hudson Valley Radiology Associates, if applicable, and any circumstances
beyond MRI's reasonable control. Following full system acceptance by MRI as to
funcionality and performance at the Kingston Diagnostic Center, ITLI will be
given equitable treatment in the selection process for future Radiologix
integrated RIS/PACS installations provided that (1) ITLI's integrated RIS/PACS
product, equipment and support services continue to function within the product,
equipment and support services performance specifications and criteria outlined
in the Definitive Agreements, (2) ITLI's equipment, product and support services
are of competitive quality, functionality and price to other providers of
substantially similar integrated RIS/PACS products, and (3) ITLI's integrated
RIS/PACS product, equipment and support services meet the technical and workflow
requirements of the contemplated installation.

(g) ITLI will provide requisite professional interpretation and supervision
services at or for patients of Kingston Diagnostic Center for thirty (30) days
after the date of this letter agreement on the same terms, and subject to the
same conditions, as such services were provided pursuant to David Ryon, M.D.'s
agreement with Hudson Valley Radiology Associates that expired on March 31,
2002.

                                      -2-
<PAGE>

(h) For so long as the Definitive Agreements are in effect, MRI will allow ITLI
to continue the use of the Kingston Diagnostic Center as a demonstration site as
long as clinical productivity is not compromised. MRI further allows ITLI to
maintain an on site lab for continued development and location of the servers
for the Kingston Diagnostic Center installation. MRI will allow ITLI to evaluate
new modalities and equipment at the Kingston Diagnostic Center as long as
clinical productivity is not compromised. MRI will allow ITLI to maintain an
office for an on site engineer in the downstairs laboratory. ITLI will maintain
its primary and corporate offices at IBM Tech City as soon as the space is
completed.

3. Expenses. The parties shall each pay their own fees and expenses and those of
their agents, advisors, attorneys and accountants with respect to negotiation of
this letter agreement, negotiation of Definitive Agreements and consummation of
the transactions contemplated by the Definitive Agreements.

4. Conditions to Each Party's Obligations. Each party's obligations to
consummate the transaction are conditioned upon, among other things,
satisfaction, or waiver by that party, of the following conditions:

(a) All regulatory, governmental or quasi-governmental approvals and licenses
shall have been obtained or maintained; and

(b) Definitive Agreements by and among the parties shall have been executed.

5. Confidentiality. The Confidentiality Agreement entered into between the
parties in 2001 shall remain in full force and effect for the term of this
letter agreement and as otherwise specified therein.

6. Agreement. This letter agreement is a contract, acceptance of which shall
obligate the parties to proceed in good faith to negotiate Definitive Agreements
embodying the terms set forth in this letter agreement and such additional
provisions, terms and conditions to which the parties may agree. Until
Definitive Agreements are duly executed by the parties, no other legal
obligation will be binding upon the parties.

7. Termination of Letter Agreement. This letter agreement shall remain in full
force and effect until terminated by the mutual agreement of the parties or by
either party if (i) Definitive Agreements are not executed by the parties within
fifteen (15) days after acceptance of this letter agreement and the terminating
party is not otherwise in breach of this letter agreement, or (ii) the
Transaction is not consummated on or before May 1, 2002, and the terminating
party is not in breach of this letter agreement. This letter agreement will
terminate upon execution and delivery of the Definitive Agreements.

This letter agreement is for the benefit of each of MRI and ITLI and their
respective Representatives and shall be governed by and construed in accordance
with the internal laws of the State of New York. This letter agreement
supersedes all prior discussions and writings and constitutes the entire
agreement between the parties with respect to the subject matter hereof.

                                      -3-
<PAGE>

Please confirm your agreement with the foregoing by signing and returning one
copy of this letter to the undersigned, whereupon this letter agreement shall
become a binding agreement between MRI and ITLI.

Respectfully,

MID ROCKLAND IMAGING PARTNERS, INC.
By:___________________________________
Its:___________________________________

Accepted and agreed:

Image Technology Laboratories, Inc.

By: __________________________________

Its: __________________________________

Date: ________________________________

                                      -4-
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EXHIBIT 10.10.AM    
  

 
 

8% SIXTY-DAY TERM NOTE    
  

	$150,000	 	May 3, 2002

        ELECTROPURE, INC., a California corporation, (the  "Company"), for the value received,
hereby unconditionally and absolutely promises to pay to the order of ANTHONY M. FRANK,
TTEE, ANTHONY M. FRANK DEFINED BENEFIT PENSION PLAN, UNDER AGREEMENT DATED 12/01/98, FBO: SHIRLEY M. PEGG, or holder (collectively, the  "Holder"), upon presentation and surrender
of this Note at its office at 23456 South Pointe Drive, Laguna Hills, California 92653, or such other place
as the Company may, from time to time, designate, the sum of One Hundred Fifty Thousand ($150,000), in lawful money of the United States, on
July 3, 2002, or if such day is not a regular business day, then on the next business day thereafter (the "Maturity Date"). 

        1.    PAYMENTS AND PREPAYMENTS.    

        (a)  All
payments and prepayments of principal and interest shall be made in immediately available funds on or before the Maturity Date to the Holder at 101 Montgomery, San
Francisco, California 94104. 

        (b)  The
unpaid principal amount of the Note from time to time outstanding shall bear interest from the date of this Note at the rate of Eight Percent (8%) per annum until
paid. Interest shall be computed for the actual number of days elapsed on the basis of a year consisting of 360 days. 

        (c)  The
Company may prepay at any time in advance of the Maturity Date all or any part of this Note, plus accrued interest on the portion of the principal being prepaid.
Interest on the portion of the Note prepaid shall cease to accrue on and after the date of such prepayment. 

        2.    NOTICES TO NOTEHOLDER.    

        So
long as this Note shall be outstanding, if the Company (i) shall pay any dividend or make any distribution upon the Company Stock or (ii) shall effect a capital
reorganization, reclassification of capital stock, consolidation or merger with or into another corporation, sale, lease or transfer of all or substantially all of the property and assets of the
Company to another corporation, or voluntary or involuntary dissolution, liquidation or winding up of the Company, then in any such case, the Company shall cause to be mailed by certified mail to the
Holder, at least fifteen days prior to the date specified in (x) or (y) below, as the case may be, a notice containing a brief description of the proposed action and stating the date on
which (x) a record is to be taken for the purpose of such dividend or distribution, or (y) such reclassification, reorganization, consolidation, merger, conveyance, lease, dissolution,
liquidation or winding up is to take place and the date, if any is to be fixed, as of which the holders of Common Stock or other securities shall receive cash or other property deliverable upon such
reclassification, reorganization, consolidation, merger, conveyance, dissolution, liquidation or winding up. 

        3.    EVENTS OF DEFAULT.    If one or more of the following described events shall occur (each an "Event of Default"): 

        (a)  The
Company shall fail to pay the principal of, or interest on, this Note within five (5) days after the Holder has given written notice to the Company that the
same has become due; or 

        (b)  The
Company shall fail to perform or observe any of the provisions contained in any Section of this Note and such failure shall continue for more than thirty
(30) days after the Holder has given written notice to the Company; or 

1

 

        (c)  Any
material representation or warranty made in writing by or on behalf of the Company in this Note shall prove to have been false or incorrect in any material respect,
or omits to state a material fact required to be stated therein in order to make the statements contained therein, in the light of the circumstances under which made, not misleading, on the date as of
which made, and the Company shall have failed to cure such false or incorrect statement within thirty (30) days after the Holder has given written notice to Borrower; or 

        (d)  The
Company shall be adjudicated a bankrupt or insolvent, or admit in writing its inability to pay its debts as they mature, or make an assignment for the benefit of
creditors; or the Company shall apply for or consent to the appointment of a receiver, trustee, or similar officer for it or for all or any substantial part of its property; or such receiver, trustee
or similar officer shall be appointed without the application or consent of the Company and such appointment shall continue undischarged for a period of thirty (30) days; or the Company shall
institute (by petition, application, answer, consent or otherwise) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar proceeding
relating to it under the laws of any jurisdiction; or any such proceeding shall be instituted (by petition, application or otherwise) against the Company and shall remain undismissed for a period of
ninety (90) days; or any judgment, writ, warrant of attachment or execution or similar process shall be issued or levied against a substantial part of the property of the Company and such
judgment, writ, or similar process shall not be released, vacated or fully bonded within ninety (90) days after its issue or levy; or 

        (e)  The
Company shall be enjoined, restrained or in any way prevented by a court order from continuing to conduct all or any material part of its business affairs; 

        (f)    Any
suit, action or other proceeding (judicial or administrative) commenced against the Company, or with respect to any assets of the Company, shall threaten to have a
material adverse effect on their future operations, including, without limitation a final judgment or settlement in excess of $25,000 in excess of insurance shall be entered in, or agreed to in
respect of any such suit, action or proceeding. 

        THEN,
or at any time thereafter, and in each and every case: 

        (1)  Where
the Company is in default under the provisions of Section 3(d) hereof, the entire unpaid principal amount of the Note, all interest accrued and unpaid
thereon, and all other amounts payable to the Holder hereunder shall automatically become and be forthwith due and payable without offset or counterclaim of any kind and without presentment, demand,
protest or notice of any kind, and without regard to the running of the statute of limitations, all of which are hereby expressly waived by the Company; and 

        (2)  In
any other case referred to in this Section 3, the Holder may, by written notice to the Company, as the case may be, declare the entire unpaid principal amount
of this Note, all interest accrued and unpaid hereon, and all other amounts payable hereunder to be forthwith due and payable, whereupon the same shall become immediately due and payable, without
offset or counterclaim of any kind and without presentment, demand, or protest, and without regard to the running of any statutes of limitation, all of which are hereby expressly waived by the
Company. 

        Any
declaration made pursuant to Section 3(2) hereof is subject to the condition that, if at any time after the principal of this Note shall have become due and payable, and
before any judgment or decree for the payment of the moneys so due, or any thereof, shall have been entered, all arrears of principal and interest upon this Note (except that principal of this Note
which by such declaration shall have become payable) shall have been duly paid, and every Event of Default shall have been made good, waived or cured, then and in every such case the Holder shall be
deemed to have rescinded and annulled such declaration and its consequences; but no such rescission or annulment shall extend to or affect any subsequent Event of Default or impair any right
consequent thereon. 

2

 

        4.    CORPORATE OBLIGATION.    It is expressly understood that this Note is solely a corporate obligation of the
Company and that any and all personal liability, either at common law or in equity, or by constitution or statute, of, and any and all rights and claims against, every stockholder, officer, or
director, as such, past, present or future, are expressly waived and released by the Holder as a part of the consideration for the issuance hereof. 

        5.    AUTHORIZATION; NO CONFLICT.    The borrowings hereunder, the execution and delivery of the Note and the
performance by the Company of its obligations under this Agreement and the Note are within the corporate powers of the Company, have been authorized by all necessary corporate action, have received
all necessary governmental approval (if any shall be required) and do not and will not contravene or conflict with any provision of law or of the charter or by-laws of the Company or of
any agreement binding upon the Company. 

        6.    TRANSFER.    Subject to the appropriate provisions hereof, this Note or any portion of the principal amount
hereof (or any remaining balance if any pre-payments have occurred pursuant to Section 1 hereof) is transferable on the records of the Company upon presentation of this Note,
properly endorsed, at its principal office; upon such presentation and transfer a new Note or Notes will be issued. For the purposes of payment and all other purposes, the Company shall deem and treat
the person in whose name this Note is registered as the absolute owner hereof and the Company shall not be affected by any notice to the contrary. 

        7.    MISCELLANEOUS.    

        (a)  Notwithstanding
the foregoing, the Company promises to pay interest after maturity (whether by acceleration or otherwise, and before as well as after judgment) at the
same rate as above provided prior to maturity on balances, if any, then outstanding. 

        (b)  Interest
under this Note shall be computed on the basis of a thirty (30) day month and a year of 360 days for the actual number of days elapsed. 

        IN
WITNESS WHEREOF, the Company has caused this Note to be executed in Laguna Hills, California as of the day and year first above written. 

	COMPANY:	 	HOLDER:
	

ELECTROPURE, INC.	
 	

ANTHONY M. FRANK, TTEE, ANTHONY M. FRANK DEFINED BENEFIT PENSION PLAN UNDER AGREEMENT DATED 12-01-98, FBO: SHIRLEY M. PEGG

	

By	
 	

/s/ Catherine Patterson
	
 	

By	
 	

/s/ Anthony M. Frank

	 	 	Catherine Patterson, Secretary	 	 	 	Anthony M. Frank
	 	 	23456 South Pointe Drive

Laguna Hills, CA 92653	 	 	 	101 Montgomery

San Francisco, CA 94104

3

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EXHIBIT 10.10.AM

8% SIXTY-DAY TERM NOTE

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