Exhibit 9.14
LITIGATION
MainStreet Healthcare Corporation v. Theodore K. Schock, D.O. and
Cherylene T. Johnson, Civil Action File No. 98-0078, Superior
Court of Walton County, Georgia. Filed January 1998. This is a
suit to enforce a restrictive covenant. Dr. Schock threatened to
file a counterclaim for a claimed unpaid bonus. This matter has
been settled with MainStreet allowing Dr. Schock to practice
within the restricted territory and with Dr. Schock forgiving
MainStreet's remaining payments of $100,000.00 due under the
Asset Purchase Agreement.
Paul Brewer, individually and as Administrator of the Estate of
Alma Joan Brewer v. Harold Holloway, D.O. and MainStreet
Healthcare, Corp., Civil Action No. 97-VS-127611-A, State Court
of Fulton County, Georgia. Filed in or about May 1997. This a
medical malpractice case arising from the treatment and death of
Mrs. Brewer prior to the purchase of Dr. Holloway's practice.
This liability was not assumed. Plaintiff's counsel has
indicated he will dismiss MainStreet. If he fails to do so, we
will file a motion to dismiss.
Physician Sales and Services, Inc. v. MainStreet Healthcare,
Inc., Civil Action No. 97-CV- 12575, Superior Court of DeKalb
County, Georgia. Filed October/November 1997. This is a suit on
account for supplies (although it is alleged that equipment was
included) in the amount of $190,915.13. This amount is unsecured.
The answer is due February 9, 1998 under an extension of time.
MainStreet has been remitting $10,000.00 per month since November
1997. MainStreet disputes the amount owed and has demanded an
accounting. MainStreet does not believe that payments in the
amount of $97,000.00 made in 1997 have been credited properly.
MainStreet believes that part of the amount claimed can be
attributed to amounts owed by a South Georgia practice prior to
its acquisition by MainStreet.
Kay Gillon-Martin v. MainStreet Healthcare Corporation, Civil
Action No. 97-1383-5, Superior Court of DeKalb County, Georgia.
Filed December 9, 1997. This is a suit to collect a fee in the
amount of $36,000.00 allegedly owed to Plaintiff for the
recruitment of physicians. MainStreet has filed an answer and
denies that any amount is owed. MainStreet denies that it had an
agreement with Plaintiff.
Deborah K. Gilmore v. MainStreet Healthcare Corporation and A.
Wayne Johnson, Case No. 97M057144, Magistrate Court of DeKalb
County, Georgia. Filed September 30, 1997. This suit has been
settled and a dismissal with prejudice will be filed soon by the
Plaintiff.
Pro-Scribe Services, L.L.C. v. MainStreet Healthcare Corporation,
Civil Action File No. 97SCV853, State Court of Lowndes County,
Georgia. Filed October 10, 1997. This suit has been settled and
a dismissal with prejudice was filed in November, 1997.
Exhibit 9.14 (Continued)
Georgia Power Federal Credit Union, Plaintiff v. Patricia
Oakenson, Defendant,/MainStreet Healthcare Corporation,
Garnishee, Case No. 98G67092, State Court of DeKalb County,
Georgia. Filed January 15, 1998. This is a garnishment action
of a former employee's wages. An answer indicating such will be
filed.
Aalar, Ltd. d/b/a Atlanta Rent-a-Car v. Joseph Harris, Sr. v.
MainStreet Healthcare, Garnishee, Civil Action File No.
97G-63191, State Court of DeKalb County, Georgia. Judgment
against garnishee entered April 7, 1997. Judgment satisfied.
Aalar, Ltd. d/b/a Atlanta Rent-a-Car v. MainStreet Healthcare
Corporation v. NationsBank, N.A., Garnishee, Case No.
97VX0031484AA, State Court of Fulton County, Georgia. This
garnishment has been paid and satisfied in full.
CLAIMS
Karmeletta Oppenheimer; Ms. Oppenheimer has made demand for
damages arising from an alleged breach of confidentiality, among
other additional related claims. No suit has been filed.
Tracey Hunter; Ms. Hunter made a claim of sexual harassment and
hostile work environment against MainStreet Healthcare
Corporation and Harold Holloway, D.O. This claim has been
resolved.
L. Lanier Allen, M.D.; Dr. Allen's claims concern the termination
of the Asset Purchase Agreement, the Employment Agreement and all
other agreements between him and MainStreet Healthcare
Corporation. Dr. Allen owns 8000 shares of Class A stock in
MainStreet Healthcare Corporation. A settlement has been proposed
that would require MainStreet to return all of the assets and pay
Dr. Allen $20,000.00, and Dr. Allen to return all of the stock.
The settlement has been consummated except the transfer of the
8,000 shares to MainStreet and the tender of $20,000 to Allen.
Gary Klein, M.D.; This is a dispute concerning the termination
of Dr. Klein's Employment Agreement.
Imperial Capital Corporation f/k/a/ Avco Leasing Services, Inc.;
This is a claim to certain computer equipment originally leased
by Gwinnett Family Medicine, P.C. and Dr. David J. Ellis.
MainStreet did not assume the lease(s) in question.
Durr Medical Corporation; This is a claim on account for
$23,023.73. Payments have been made on a semi-regular basis.
Exhibit 9.14 (Continued)
Frank T. Corker; This is a claim against MainStreet for default
of the Asset Purchase Agreement in the amount of $25,000.00. An
additional, and final, payment of $25,000.00 is due August 1998.
Dennis R. Thomas, M.D.; Dr. Thomas previously sold his practice
to MainStreet Healthcare Corporation. The arrangement was
terminated and certain assets have been transferred to Dr. Thomas
(See Exhibit 9.11.3). Dr. Thomas still is owed $20,000.00 by
MainStreet, at which time he will tender his 20,000 shares of
Class A common stock.