SONIX MEDICAL RESOURCES, INC. et al Chapter 11

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1 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK X In re: Case No.: (dte) SONIX MEDICAL RESOURCES, INC. et al Chapter 11 Debtors. Jointly Administered x STIPULATION AND AGREED ORDER BETWEEN QKSI RESOURCES, INC. ONE OF ELEVEN AFILIATED DEBTORS, UNDER THE CAPTION SONIX MEDICAL RESOURCES, INC. et al (THE MODIFYING THE AUTOMATIC STAY TO PERMIT PROSECUTION OF A MEDICAL MALPRACTICE CASE. QKSI RESOURCES, INC. is one of eleven affiliated debtors, in the above captioned jointly administered cases ( Debtors ), and Christopher Waickley, by and through their respective counsel, hereby stipulate and agree as follows: RECITALS WHEREAS, on October 15, 2009 (the Petition Date ) the Debtors each filed voluntary petitions for relief under chapter 11 of title 11 of the Bankruptcy Code with this Court. The Debtors chapter 11 cases have been consolidated for procedural purposes only and are being jointly administered pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules ). The Debtors are currently operating their business as debtors in possession pursuant to sections 1107 and 1108 of the Bankruptcy Code; WHEREAS, Christopher Waickley was allegedly injured when he underwent an MRI at the premises located at 1050 Forest Hill Road, Staten Island, New York. Prior to the

2 2 bankruptcy filing, on or about July 29, 2004, a medical malpractice action was commenced in the Supreme Court of the State of New York, County of Kings, with Index No /04 against MARK NOVICK, M.D., MARK NOVICK M.D., P.C. D/B/A STATEN ISLAND MEDICAL IMAGING. And, also prior to the bankruptcy, QKSI RESOURCES INC. was impleaded on or about June 14, Issue was joined on or about August 14, The full caption of the Waickley Action is as follows: SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF KINGS x Index No: CHRISTOPHER WIACKLEY 20588/04 Plaintiff, against MARK NOVICK, M.D., and MARK NOVICK, M.D., P.C., d/b/a STATEN ISLAND MEDICAL IMAGING, Defendants. x MARK NOVICK, M.D., and MARK NOVICK, M.D., P.C., Third Party Plaintiff, Third Party Index No.: 75767/06 QKSI RESOURCES, INC., against Third Party Defendant. x WHEREAS, QKSI RESOURCES, INC. ( QKSI ) allegedly leased the MRI equipment, which is in issue, to Mark Novick, M.D. and Mark Novick, M.D. WHEREAS, upon information and belief, it is alleged that QKSI is a lessor of MRI equipment to Mark Novick, M.D., and Mark Novick, M.D., P.C.

3 3 WHEREAS, upon information and belief, QKSI Inc., insurer is believed to have primary insurance policy coverage with respect to this matter (the QKSI Policy ). IT IS HEREBY STIPULATED, AGREED AND ORDERED THAT: 1. The automatic stay (the Automatic Stay ) imposed pursuant to section 362(a) of the Bankruptcy Code is hereby modified solely to the extent necessary to permit continuation of the Waickley Action and any potential appeal(s) thereof for the limited purpose of determining liability and damages and to seek recovery against the QKSI Policy only up to the limits of liability contained therein. 2. Waickley shall not make any demand or seek to collect any sums from the Debtors, irrespective of any recovery that may be obtained by Waickley against the carriers including (i) any sum within the scope of any deductible provision contained in any insurance policy which Waickley shall waive, and (ii) any deficiency that may arise by virtue of a judgment obtained in excess of the limits of the QKSI Policy. 3. Nothing in this Stipulation land Order shall operate as a waiver or modification of the Automatic Stay as to permit prosecution against QKSI or any claim or claims by any entity other than Waickley, in accordance with the terms set forth herein. 4. The limited relief set forth herein shall not be construed as an admission of liability by QKSI of any claim or cause of action asserted in the Waickley Action or any related matter and all of QKSI s respective rights, claims and defenses are expressly preserved. 5. This Stipulation and Order shall be interpreted, construed and enforced exclusively in accordance with the laws of the State of New York. 6. The terms of this Stipulation and Order are subject to approval of the Bankruptcy Court and shall be of no force and effect unless and until it is approved. 7. This Court shall retain jurisdiction to hear and determine all matters arising from or related to the implementation of this Stipulation and Order. 8. This Stipulation and Order can only be amended or otherwise modified by a signed writing executed by the Parties and upon approval by further order of this Court. 9. Each person who executes this Stipulation and Order by or on behalf of each respective party represents and warrants that he or she has been duly authorized and empowered to execute and deliver this Stipulation and Order and all of the provisions

4 4 hereof shall be binding upon, and inure to the benefit of, the Parties hereto and their respective successors and assigns, including any successor trustee for QKSI. Dated: New York, New York July 14, 2010 THE COCHRAN FIRM By:_s/ Roberta L. DiGangi, Of Counsel The Woolworth Building, 5 th Floor 233 Broadway, 5 th Floor New York, NY (212) Attorneys for Christopher Waickley New York, New York July 14, 2010 ROBINSON BROG LEINWAND GREENE GENOVESE & GLUCK P.C. By: s/ Fred B. Ringel 875 Third Avenue New York, New York Tel. No.:

5 5 Attorneys for the Debtors and Debtors in Possession SO ORDERED: Dated: Central Islip, New York August 2, 2010 s/dorothy Eisenberg Honorable Dorothy Eisenberg United States Bankruptcy Judge

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