Attached files
EXHIBIT 10.1
MOMENTUM
Letterhead
August 5, 2009
Mr. K. J. Dennis
Chairman, Dennis Steels PVT LTD
Cocodale, M.0. Ward
Alleppey, Kerata
India
Re: Offer to Purchase Parcel of Land Near Arakkonam, Tamil Nadu
Dear Mr. Dennis,
Pursuant to a resolution of the Board of Directors of Momentum Healthcare
Services, Inc. ("Momentum"), passed unanimously at its Board Meeting on August
5, 2009, we hereby offer to purchase a parcel of land of approximately ten (10)
acres near a prominent railway junction at Arakkonam, Tamil Nadu, India.
The conditions and terms of closing of this transaction are as follows:
1) Contingent upon Momentum Healthcare Services, Inc. having raised not
less than $10,000,000 in new shareholder investment into the company
on or after August 5, 2009, and not later than December 31, 2009.
2) Title to be taken in the name of a new Indian private limited company,
the shares of which are owned by Momentum Healthcare Services, Inc., a
Delaware USA corporation (our "Indian Subsidiary").
3) We agree on behalf of Momentum and our Indian Subsidiary to be formed
to use the land only to build, maintain and operate one or more
medical clinics and/or a full service acute care hospital, a medical
college, a nursing school or another purpose within the healthcare
industry. In the event that Momentum chooses not to move ahead with
one of these purposes for the land, we agree to offer you the first
right of refusal to repurchase the land from Momentum for
consideration substantially the same as we hereby offer. This right
will terminate should you sell any of the shares, which are our
consideration for this transaction.
4) The name of the most prestigious healthcare facility that we build on
the land shall include the name Konath Jacob Dennis, or such other
name as you may designate prior to closing of this transaction.
5) The consideration for the purchase of the land shall be a number to be
determined of Momentum Class A Common Shares, determined by solving
for an equation using as a numerator the appraised value of the
identified parcel of land and as a denominator US$5. The quotient of
this equation shall be the number of Shares of our Class A Common
Shares, which we will exchange for the parcel of land in question. You
agree to hold these shares for a period of one year from the date of
closing.
6) Contingent upon our establishing to Momentum's satisfaction that the
construction of any building on the site can be financed from within
the Indian banking or other financing community.
7) At closing, in return for Momentum tendering cash payment for these
items, you shall deliver to Momentum the following documents:
a) An appropriate marketable clear title deed for the parcel without
encumbrance, which, will allow the premises to be mortgaged for
a construction loan, ready for filing in the appropriate
jurisdiction for filing of deeds, in the name of Momentum's
pre-closing designated Indian subsidiary.
b) An Opinion of Counsel that Momentum's Indian Subsidiary will take
good and irrevocable title to the land, and that such title is
without encumbrance;
c) A professional survey of the parcel;
d) A professional legal description of the parcel;
e) A formal Appraisal of the marker value (mutually acceptable) of
the property completed by Jones, Lang LaSalle; CB Richard Ellis;
or Cushman & Wakefield; or another internationally recognized
appraiser.
f) A Title Indemnity or Title Insurance Policy (if permitted by
Indian Law), establishing that in the event that Momentum's
Indian Subsidiary's title is not good for any reason, the
underwriter of the policy wi11 pay up to the fuel level of
permissible indemnity or insurance.
8) Momentum or its designated representative shall deliver at closing the
requisite number of its Class A Common Shares of Momentum and cash
payment for the items contained in paragraph 7 above.
9) Delivery of such other documentation as counsel shall require
memorializing and filing the transaction with all appropriate
authorities.
10) Closing is to be completed not later than December 31, 2009, or such
later date as the parties may agree, or it shall be null and void.
Please accept this contingent offer by signing in the indicated space below.
Very truly yours,
MOMENTUM HEALTHCARE SERVICES, INC.
/s/ DONALD L. CONOVER
__________________________________
By: Donald L. Conover, President
Accepted:
DENNIS STEELS PVT LTD.
/s/ K. J. DENNIS
__________________________________
By: K.J. Dennis, Managing Director
Date:05/08/09