EXHIBIT
10.13
NON-COMPETITION
AGREEMENT
THIS NON-COMPETITION AGREEMENT (this “
Agreement ”) is made and entered into as of 12/12,
2005, by and among Bruce E. Wardlay, (“ Purchaser
”) and Alwyn Lorenzo (“ Obligor ”). The
Closing Date (as defined below)) shall be the “ Effective
Date ” of this Agreement. Capitalized terms used and not
defined herein shall have the same meanings assigned to such terms
in the Master Transaction Agreement.
RECITALS
A. This Agreement is being entered into pursuant
to Asset Purchase Agreements (herein so called) effective as of
12/12/2005, by and between Purchaser, as purchaser and Ft. Worth
Rehabilitation, Inc., a Texas corporation, as seller (collectively,
the “Clinic”);
B. The undersigned Obligor is an employee,
director and/or officer of the Clinic.
C. This Non-Competition Agreement is being entered
into between the Purchaser and Obligor as a condition of closing
pursuant to the Asset Purchase Agreement, pursuant to which the
Purchaser shall acquire certain assets (“ Acquired
Assets ”) of the Clinic. The Asset Purchase Agreement,
together with each of the exhibits attached thereto (and documents
to be executed in connection therewith), are hereinafter
collectively referred (and documents to be executed in connection
therewith), are hereinafter collectively referred to as the “
Transaction Documents .”
D. Purchase will pay the Clinic significant cash
consideration in the Acquisition (herein so called) pursuant to the
Asset Purchase Agreement, and Obligor shall benefit therefrom as a
shareholder of the Clinic.
E.
The Obligor has valuable knowledge,
relationships, experience and expertise in the management and
operation of clinics for the delivery of physical therapy,
rehabilitation, work hardening services.
F. Purchaser has entered into that certain MASTER
TRANSACTION AGREEMENT (“ Master Transaction Agreement
”), dated and effective as of 12/12/05, by and among Basic
Health Care Networks of Texas, L.P., a Texas limited partnership,
as purchaser, on the one hand (“Basic Health”), 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 Purchase, as seller (the “Basic Health
Acquisition”).
G. Basic Health
intends to develop, establish, operate and manage additional work
hardening and other clinics (the “ New Clinics
”) at one or more locations to be determined by Basic
Health.
H. As a condition and mutual inducement to the
Acquisition, the Transaction Documents contemplate, among other
things, that the Obligor shall enter into this Non-Competition
Agreement effective on the Effective Date.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual
promises made herein, Purchaser and the Obligor hereby agree as
follows:
1. Covenant Not to Compete or Solicit
. Obligor recognizes that entering
into a competitive practice with the Purchaser would deprive the
Purchaser of some or all of its practice sources to the substantial
detriment of the Purchaser’s ongoing practice and Obligor
acknowledges that the Purchaser has a substantial interest in
protecting itself from unfair competition, including the improper
use of Proprietary Information. In consideration of the substantial
compensation paid to Obligor by the Purchaser, and the other
benefits received by Obligor hereunder, Obligor agrees with the
Purchaser that the following restrictive covenants are reasonably
designed to protect the legitimate interests of the
Purchaser:
1.1 Covenant Not to Compete . Obligor agrees that for so long as Obligor is
employed by Purchaser or its assigns and for one year thereafter
(“ Restricted Period ”), Obligor shall not,
directly or indirectly, as an employee, employer, contractor,
consultant, agent, principal, shareholder, corporate officer,
director, or in any other individual or representative capacity,
engage or participate in any business or practice within the
Practice Territory (as defined herein) that is in competition in
any manner whatsoever with the practice of the Purchaser, the New
PA, and the New Clinics. The parties mutually acknowledge and agree
as follows:
(a) If Obligor should set up an office and practice
medicine within the Practice Territory in competition with the
practice of the Purchaser, it would cause economic harm and loss of
goodwill to the Purchaser resulting in immediate and irreparable
loss, injuries, and damage to the Purchaser.
(b) Notwithstanding anything to the contrary in
this Section 1.1, physician is not prohibited from owning less than
five percent (5%) of the equity of any publicly-traded
entity.
(c) Neither the public in general nor any patients
will be adversely affected by the enforcement of the
non-competition covenant, in that other similar providers of
professional medical services are readily available within the
restricted area.
1.2 Practice Territory . The Purchaser is actively engaged in the
practice of general family and urgent care and ancillary medical
services such as rehabilitation and physical medicine in various
locations within the Dallas and Fort Worth metropolitan areas, and
it is therefore agreed that the term of “ Practice
Territory ” shall mean: a ten (10) mile radius of either
Clinic. In the event that the provisions of this Section 1.2 are
deemed by a court of competent jurisdiction to exceed the time,
geographic or scope limitations permitted by applicable law, then
such provisions shall be reformed to the maximum time, geographic
or scope limitations, as the case may be, permitted by applicable
laws.
1.3 Remedies . Without limiting other possible remedies to
Purchaser for breach of this covenant, Obligor agrees that
injunctive or other equitable relief will be available to enforce
the covenants of this provision, such re
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