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PART III
ITEM 13 -- CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
CERTAIN TRANSACTIONS
MARGOLIS $100,000 NOTE. In connection with Mr. Margolis' employment
agreement, dated April 30, 1998, we loaned Mr. Margolis $100,000 in exchange for
a promissory note in the principal sum of $100,000, bearing interest at 6.5% per
year. We forgave $25,000 of the principal amount of this note and the related
interest on each of April 30, 1999 and April 30, 2000, and shall forgive an
additional $25,000 and the related interest on each of the next two
anniversaries of Mr. Margolis' employment agreement, so long as Mr. Margolis
remains our employee. The entire sum of principal and interest of the note is
due on April 30, 2002, and is immediately due if Mr. Margolis commits any act of
default as described in the note. As of December 31, 2000, the total principal
and accrued interest outstanding was $58,667.
GARTE & ASSOCIATES, INC. In 2000, we entered into an agreement with Garte &
Associates, Inc. pursuant to which we would pay Garte & Associates, Inc. an
investment banking fee for certain acquisitions. In 2000, we paid a total of
$250,000 to Garte & Associates, Inc. in connection with our acquisitions of
Healthcare Media Enterprises, Inc. and Erisco, Inc. In January 2001, we paid
$365,000 to Garte & Associates, Inc. in connection with our acquisition of
Resource Information
Management Systems, Inc. Harvey Garte, our Vice President of Corporate
Development, is the sole stockholder of Garte & Associates, Inc.
FUTURE TRANSACTIONS. Any future transactions between us and our officers,
directors or affiliates will either be on terms no less favorable to us than
could be obtained from third parties, will be subject to approval by a majority
of our outside directors or will be consistent with policies approved by a
majority of such outside directors.
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