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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 13, 1998
Jayark Corporation
(Exact name of registrant as specified in its charter)
Delaware 0-3255 13-1864519
(State of incorporation) (Commission File #) (IRS EIN)
Post Office Box 741528, Houston, Texas 77274
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including are code: 713-783-9184
N/A
(Former name or former address, if changed since last report.)
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Item 5. Other Events
On November 13, 1998 Jayark Corporation, through a newly formed, wholly owned
subsidiary, MED Services Corp. ("Med"), terminated its Purchase and Sale,
Distribution, and Custody Agreements with Vivax Medical Corporation
("Vivax"), a company that manufactures, sells and rents durable medical
equipment to hospitals, nursing homes and individuals. Under the terms of
the Purchase and Sale Agreement, dated June 17, 1998, Med purchased certain
medical equipment from Vivax for cash of $579,700 and a $144,925 unsecured
promissory note due in five years. Med then entered into a Consignment
Agreement with Vivax whereby this medical equipment was consigned to Vivax to
rent through its distribution network. In consideration of Vivax renting and
maintaining the Med equipment, Vivax was entitled to a range of forty-eight
to sixty-seven percent of the rental proceeds, based upon the equipment
rented. Vivax had an option to purchase the medical equipment from Med after
the twenty-fourth, thirty-six and forty-eighth month of the consignment
period. Med, under the Purchase and Sale Agreement had an option, through
October 31, 1999 to purchase an additional $2,475,000 of medical equipment
from Vivax.
In consideration for terminating the Agreements, MED received $840,000 from
Vivax. MED, in turn, paid off the $450,000 outstanding on its revolving line
of credit to the bank and outstanding interest due on the line.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JAYARK CORPORATION
Registrant
By: /s/David L. Koffman Dated: November 19, 1998
David L. Koffman
President, Chief Executive Officer
