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4. The Space and Equipment Rental and Personal Services and Management Agreement <br /> Safe Harbors <br /> The regulations create safe harbors for certain contracts for space and equipment rental and <br /> personal services and management contracts. These three separate safe harbors are virtually <br /> identical in their requirements. For each safe harbor, a written agreement must be executed. The <br /> term of the agreement must be for at least one year and must specify the aggregate payment <br /> amount as well as the premises, equipment, or services covered. If the agreement does not <br /> contemplate full-time services, the agreement must also specify the schedule of intervals, their <br /> precise length, and the exact charge for such intervals. In addition,the payments must be based <br /> upon fair market value, and not vary on the volume or value of any Federal health care program <br /> covered referrals or business generated between the parties. The services performed under the <br /> agreement must not involve the counseling or promotion of a business activity or other activity <br /> that violates any state or federal law. <br /> 5. The Small Entity Investment Interest Safe Harbor <br /> In addition to a safe harbor for large, publicly traded companies, the regulations create a safe <br /> harbor for investment interests in smaller companies, as long as these eight standards are <br /> satisfied: <br /> a. no more than forty percent(40%) of the value of the investment interests of each class <br /> of investments may be held by investors who are in a position to make or influence <br /> referrals to the entity; <br /> b. the terms on which an investment interest is offered to a passive investor in a position to <br /> make or influence referrals to the entity may not be any different from the terms offered <br /> to other passive investors; <br /> c. the terms on which an investment interest is offered to an investor in a position to <br /> make or influence referrals to the entity may not be related to previous or expected <br /> referrals; <br /> d. passive investor cannot be required to refer patients to the entity; <br /> e. the entity may not market or furnish the entity's items or services to passive investors <br /> differently than to non-investors; <br /> E no more than forty percent (40%) of the gross revenue of the entity may come from <br /> referrals generated from investors; <br /> an investor who is in a position <br /> g, the entity must not loan funds to or guarantee a loan for a v p <br /> to make or influence referrals; and <br /> h. the amount of payment to an investor in return for the investment interest must be <br /> directly proportional to the amount of the capital investment of that investor. <br /> 6. Restocking Safe Harbor <br /> 19 <br />