Exhibit 10.12
MANAGEMENT SUPPORT AND MARKETING
AGREEMENT
This MANAGEMENT SUPPORT AND
MARKETING AGREEMENT (“Agreement,”) entered into and
effective as of the 1st day of September, 2002 (notwithstanding the
date of actual execution) by and between DOCTORS PRACTICE
MANAGEMENT, INC. , A Texas business corporation
(“DPM”), and MEDICAL MULTIMEDIA ADVERTISING,
INC. (“MMA”).
WITNESSETH:
WHEREAS, MMA is a duly and
validly existing Texas corporation that has been organized for the
purpose of providing investment opportunities and management
support and marketing services for medical and related healthcare
providers (“Healthcare Services”) to the general public
in the Greater Houston, Texas area;
WHEREAS, DPM is experienced
in providing management and related items and services to
physicians, professional associations, and other professional
healthcare entities and individuals and has been engaged as manager
by VISTA COMMUNITY MEDICAL CENTER, L.L.C. ,
(“VISTA”) a Texas business corporation organized for
the purpose of operating an outpatient surgical and diagnostic
clinic and providing medical and related healthcare services
(“Healthcare Services”) in the Greater Houston, Texas
area;
WHEREAS, DPM desires and
intends to obtain such management, administrative, and business
services necessary and appropriate for VISTA’S
business operations and the provision of Healthcare Services by
VISTA , and MMA is capable of assisting DPM in
providing, all such management, administrative, and business
services; and
WHEREAS, DPM and MMA
mutually desire an arrangement that:
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(1)
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ensures
consistency of service, quality of care, and safety of
VISTA’S patients;
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(2)
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facilitates
effective utilization of Healthcare Services;
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(3)
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ensures
consistent and customary patterns for the provision of Healthcare
Services;
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(4)
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facilitate the
establishment and maintenance of a public image of excellence and
high quality for VISTA , all for the benefit of those
persons seeking Healthcare Services as patients of VISTA
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NOW, THEREFORE, for and in
consideration of the mutual covenants set forth herein, and other
good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged and confessed, the parties agree as
follows:
Covenants and Conditions
Regarding Management and Advertising:
1.1 MMA agrees that it has
the primary responsibility for the marketing of the facilities,
including but not limited to the following:
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(a)
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recruitment of
physicians as tenants in the professional building;
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(b)
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recruitment of
physicians to use and otherwise employ the services of the
hospital;
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(c)
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general efforts
to improve the reputation and market the benefits of VISTA ;
and
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(d)
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create and
publish multi-media advertising (subject to advance DPM
approval).
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1.2 DPM agrees to pay Two
Hundred Thousand Dollars ($200,000.00) a month to be used for
advertising and to pay fees and expenses of MMA . MMA
and DPM agree that these funds will be deposited in an
account to be managed and controlled solely by MMA . From
these funds, MMA agrees to expend at least $165,000.00
monthly, directly on advertising and the general marketing of
VISTA , and the associated services of the Vista Medical
Center at 1401 and 1401A Vista, Pasadena, Texas. Further,
MMA will provide to DPM a written report and
verification of these expenditures quarterly, with said report
being due not later than thirty (30) days after the end of each
respective quarter.
1.3 Management and Clerical
Personnel. MMA shall employ or otherwise retain, and shall
be responsible for selecting, training, supervising, scheduling,
and terminating, all management and clerical personnel as
MMA deems reasonably necessary and appropriate in the
performance of its duties and obligations under this Agreement.
MMA shall have sole responsibility for determining the
salaries, wages, and fringe benefits of all such management and
clerical personnel, for paying such salaries and wages, and for
providing such fringe benefits, and for withholding as required by
law, any sums for income tax, unemployment insurance, social
security, or any other withholding required by applicable law or
governmental requirement.
1.4 Insurance.
Throughout the Term, MMA shall, at MMA ’s
expense, obtain and maintain with commercial carriers, through
captive insurance companies, through self-insurance, or some
combination thereof, professional, casualty, and comprehensive
general liability insurance covering MMA , its personnel,
and all of its equipment in such amounts, on such basis, and upon
such terms and conditions as DPM deems
appropriate.
1.5 Indemnification by
MMA. MMA shall indemnify and hold DPM harmless from
and against any and all liability losses, damages, claims, causes
of action, and expenses, including, without limitation, reasonable
attorney’s fees and associated costs, associated with or
resulting, directly or indirectly, from any act or omission of
MMA , its employees, agents, or independent contractors in
or about the Facility during the Term. To be entitled to such
indemnification, DPM shall give MMA prompt
written
Management Support And Marketing
Agreement
Between Doctors Practice Management,
Inc. and Medical Multimedia Advertising, Inc.
(dynacy/doctorspractice/contracts)
Page 2 of 9
notice of the assertion by a third party of any
claim with respect to which DPM might bring a claim for
indemnification hereunder, and in all events must provide such
written notice to MMA within the applicable period for
defense of such claim by MMA . MMA shall, at its own
expense, have the right to defend and litigate any such third-party
claim.
2.1 Organization and
Existence. DPM is a Texas corporation duly organized,
validly existing and in good standing under the laws of the State
of Texas and has all requisite legal and corporate power to carry
on its business as now conducted and to enter into and perform this
Agreement.
2.2 Compliance with Laws.
DPM is in compliance in all material respects with all
applicable foreign, federal, state, municipal and other political
subdivision or governmental agency statutes, ordinances and
regulations, including, without limitation, those imposing taxes,
in every applicable jurisdiction in respect of the ownership of
DPM properties and conduct of DPM’s
business.
2.3 Brokers. DPM in
not a party to or in any way obligated under any contract or other
agreement for, and there are no outstanding claims against
DPM for the payment of any broker’s or finder’s
fee in connection with the origin, negotiation, execution or
performance of this Agreement.
2.4 DPM’s Authority
Relative to this Agreement. The execution, delivery and
performance of this Agreement by DPM has been duly
authorized and approved by the Board of Directors and no further
corporate action is necessary on the part of DPM to make
this Agreement valid and binding upon DPM in accordance with
its terms. Neither the execution, delivery nor performance of this
Agreement by DPM will result in a violation or breach of any
term or provision under the Articles of Incorporation or Bylaws of
DPM or constitute a default or breach of, or accelerate the
performance required under, any indenture, mortgage, deed of trust
or other contract or agreement to which DPM is a party or by
which it or any of its respective assets are bound, or, violate any
order, writ, injunction or decree of any court, administrative
agency or governmental body.
3.1 Organization and
Existence. MMA is a Texas corporation duly organized
pursuant to the laws of Texas and in good standing, and has all
requisite legal power to enter into and perform this
Agreement.
3.2 Authority Relative to this
Agreement. The execution, delivery and performance of this
Agreement has been duly authorized, and no further action is
necessary on the part of MMA to make this Agreement valid
and binding upon MMA in accordance of its terms. Neither the
execution, delivery nor performance of this Agreement by MMA
will result in a violation or breach of any term or provision or
constitute a default or breach of, or accelerate the performance
required under any other contract or agreement to which MMA
is a party or by which it or its properties are bound, or violate
any order, writ, injunction or decree of any court, administrative
agency or governmental body.
Management Support And Marketing
Agreement
Between Doctors Practice Management,
Inc. and Medical Multimedia Advertising, Inc.
(dynacy/doctorspractice/contracts)
Page 3 of 9
3.3 Brokers. MMA is
not a party to or in any way obligated under any contract or
agreement for, and there are no outstanding claims against
MMA for the payment of any broker’s or finder’s
fee in connection with the origin, negotiation, execution, or
performance of this agreement.
4.1 Confidential
Information. MMA acknowledges that in the course of the
performance of this Agreement, it has had and will continue to have
access to certain know-how, formulae, processes, data, proprietary
information, supplier and patient records and information and other
confidential knowledge and trade secrets of DPM ’s and
VISTA ’s business and operations. MMA
understands that all such information is confidential and has been
or will be conceived or learned by MMA in confidence, and
agrees not to reveal any such information to any third person for
any reason or under any circumstances. MMA further agrees
that it will at no time use any such information for the purpose of
competing with or assisting others in competing with the business
of DPM or VISTA , or for any purpose which may be
harmful or detrimental to the business or interests of DPM
or VISTA . The restrictions in this section shall not apply
and shall not prohibit the use or disclosure of such confidential
information (i) to the extent required by law or court order, or
other administrative order in any litigation, arbitration, or
similar proceeding; (ii) to the extent such information becomes
publicly available other than through a breach of this section; or
(iii) to the extent such information would become necessary to
support any claim arising between the parties; or (iv) with the
writ