MSO PURCHASE AGREEMENT
This
agreement (hereinafter the "Agreement") is entered into effective as of this
28th day of November 2007, by and among Vital Health Technologies,
Inc./Caribbean American Health Resorts, Inc., a Minnesota Corporation
(hereinafter "CAHR") and Dr. Xxxxxx Xxxxx the owner of record (hereinafter
"Seller"),of the MSO (hereinafter "MSO"), with respect to CAHR's purchase of the
MSO.
In
consideration of the mutual covenants and promises hereinafter contained, the
Seller agrees to sell and the Buyer agrees to buy the MSO as described in
Exhibit "A" attached and incorporated by reference, upon the following terms and
conditions.
1. METHOD OF
PAYMENT OF PURCHASE PRICE. The purchase price for the MSO in the manner
of payment set forth in Exhibit "B" attached and incorporated by
reference.
2. POST
EXECUTION EVENTS. Upon execution of this Agreement, the following shall
be actions shall be accomplished and documents executed and delivered as set
forth in Exhibit "C" attached and incorporated by reference.
3. REPRESENTATIONS
REGARDING SELLER.
Seller hereby represents and warrants as follows, each of which
representations and warranties shall also be true as of the Closing
Date:
(a)
Seller is the sole owner of record and beneficially owns all of the issued and
outstanding Shares and other incidents of ownership o f the MSO.
(b) The
Stockholder is the sole registered holder of the issued and outstanding Shares
of the MSO.
(c) The
MSO has no outstanding or authorized capital shares, warrants, option or
convertible securities.
(d) Since
December 31, 2006, there have not been any material adverse changes in the
financial position of the assets and entities comprising the MSO except changes
arising in the ordinary course of business, which changes will in not materially
and adversely affect the financial position of Momentum.
(e) The
MSO is not a party to any material litigation or any governmental investigation
or proceedings and, to the knowledge of the Seller, no such litigation or
investigation is threatened.
(e) The
entity or entities comprising the MSO are in good standing in its jurisdiction
of incorporation.
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(f) The
MSO and Seller have (or, by the Closing Date will have) filed all material tax,
governmental and/or related forms and reports (or extensions thereof) due or
required to be filed and/or has (or will have) made adequate provisions for all
taxes or assessments which have become due as of the Closing Date.
(g) The
MSO and Seller have not, breached and there is no pending or threatened claim
that they have breached any of the terms or conditions of any agreements,
contracts or commitments to which they are a party.
(h) The
MSO has made, as is applicable, its corporate financial records, minute books,
and other corporate documents and records available for review to the present
management of CAHR prior to the Closing Date, during reasonable business hours
and on reasonable notice.
(i) All
information regarding the MSO which is set forth herein or has otherwise been
provided to CAHR is true and accurate in all material respects.
4. REPRESENTATIONS
REGARDING CAHR. CAHR hereby represents and warrants as follows, each of
which representations and warranties shall also be true as of the Closing
Date:
(a) As of
the Closing Date, the CAHR Shares to be issued and delivered to all of the
Seller will, when so issued and delivered, constitute, duly authorized, validly
and legally issued CAHR Shares fully-paid and non-assessable.
(b) CAHR
has the corporate power to enter into this Agreement and to perform its
obligations hereunder. The execution and delivery of this Agreement and the
consummation of the transactions described herein have been duly authorized by
all necessary corporate action, including being duly authorized by the Board of
Directors CAHR and by its shareholders as may be required by 1aw. This Agreement
and the consummation of the transactions described herein constitute the binding
obligation of CAHR, enforceable against CAHR and its shareholders in accordance
with its terms. The execution and performance of this Agreement will not
constitute a breach of any material agreement, indenture, mortgage, license or
other regulation. The execution and performance of this Agreement will not
violate or conflict with any provision of the articles of Incorporation or
By-laws of CAHR.
(c) Since
December 31, 2006, there have not been any material adverse changes in the
financial condition of CAHR. From the date hereof until the Closing Date. CAHR
shall not engage in any activity other than activities in anticipation of and in
furtherance of the transactions described in this Agreement.
(d)
Neither CAHR nor, to its knowledge, any related party or affiliate of CAHR., is
a party to or the subject of any pending material litigation, claims or
governmental investigation or proceedings and there are no lawsuits, claims,
assessments, investigations, or similar matters, to the best knowledge of CAHR,
threatened or contemplated against or affecting CAHR, its properties, or any
related party or affiliate of CAHR.
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(e) CAHR
and, as is applicable, each subsidiary of CAHR is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation; and CAHR and each Subsidiary of CAHR. presently has and at
Closing shall have the corporate power to own its properties and to carry on
CAHR's business as then being conducted and shall be duly qualified to do
business in any jurisdiction where so required except where the failure to so
qualify would have no material negative impact.
(f) CAHR
has (or, by the Closing Date, will have filed) all material tax, governmental
and/or related forms and reports (or extensions thereof due or required 7o be
filed and/of has (or will have) paid or made adequate provisions for all taxes
or assessments which have become due as of the Closing Date.
(g)
CAHR's authorized capital stock shall, immediately prior to Closing consist of:
(i) 50,000,000 shares of common stock, $0.01 par value; of which not more than
15,731,200 shares will be issued and outstanding immediately prior to Closing.
All outstanding shares of capital stock of CAHR arc validly issued, fully paid
and non-assessable. As of the date of this Agreement, there are not (and as of t
he Closing, Date there will not be) any existing options, calls, warrants,
preemptive rights or commitments of any character relating to the issued or
un-issued capital stock or other securities of CAHR. CAHR is not, as of the date
of this Agreement, nor will he as of the Closing Date, a party to any consulting
or severance agreement or any agreement similar to any of them.
(h) CAHR
does not own, directly or indirectly any of the capital stock or any other
securities of any other corporation or any equity, profit sharing, participation
or interest in any corporation, partnership, joint venture or any other
entity.
(i) CAHR
has disclosed in writing all events, conditions and facts materially affecting
its business, financial condition or results of operations.
(j) The
corporate financial records, minute books and other documents and records of
CAHR have been made available to Seller prior to the Closing Date, during
reasonable business hours and on reasonable notice.
(k) CAHR
has not breached, and there is no pending or threatened claim that CAHR has
breached any of the terms or conditions of any agreements, contracts or
commitments to which it is a party or by which it or its properties is bound.
The execution and performance hereof will not violate any provisions of
applicable law or any agreement to which CAHR is subject. CAHR hereby represents
that it is not a party to any material contract or commitment other than
appointment documents with its transfer agent and that it has disclosed to
Seller all relationships or dealings with related parties or
affiliates.
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(1) The
CAHR common stock is currently quoted under the trading symbol "XXXX.XX" on the
Pink Sheet Board and there are no stop orders in effect with respect
thereto.
(m) All
information regarding CAHR which is set forth herein or has otherwise been
provided by CAHR to Seller is true and accurate in all material
respects.
(n) CAHR
will be current in all material respects with regard to its reporting
obligations with the SEC and, to CAHR's knowledge, all reports filed with the
SEC are materially true, complete and accurate, and there is no information or
event required to be disclosed that has not been disclosed or will not be
disclosed in any Of CAHR's public filings as of the date hereof and as of the
Closing Date. All filings required to be made with the SEC or any state or local
government to effect the transactions described herein have or will be made
prior to Closing.
(o) The
affirmative vote of the holders of a majority of the issued and outstanding
shares of CAHR common stock entitled to vote is the only vote of the holders of
any class or series of the CAHR capital stock necessary to consummate the
transactions described in this Agreement.
(p) CAHR
is not a party to any material litigation or any governmental investigation or
proceeding and, to the knowledge of CAHR, no such litigation or investigation is
threatened.
5. CLOSING. The Closing of
the transactions described herein shall take place on such date (the "Closing"
or "Closing Date") as mutually determined by the parties hereto when all
conditions precedent have been met and all required documents have been
delivered, which Closing is expected to be on or about the 'late of approval or
effectiveness by the SEC of any registration statement or proxy filings required
by this transaction unless extended by mutual consent of all parties
hereto.
6. CONDITIONS
PRECEDENT TO THE OBLIGATIONS OF THE SELLER. All obligations of the Seller
under this Agreement are subject to the fulfillment, prior to or at of the
Closing and/or the Effective Date, as indicated below, of each of the following
conditions:
(a) The
representations and warranties regarding CAHR contained in this Agreement or in
any certificate or document delivered pursuant to the provisions hereof shall be
true in all material respects at and as of the Closing Date as though such
representations and warranties were made at and as of such time.
(b) CAHR
shall have performed and complied, in all material respects, with all covenants,
agreements and conditions set forth herein, and shall have executed and
delivered all documents required by this Agreement to be performed or complied
with or executed and delivered by it prior to or at the Closing.
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(c) On or
before the Closing, the Board of Directors of CAHR shall have approved in
accordance with applicable corporation law the execution and delivery of this
Agreement and the consummation of the transactions described
herein.
(d) On or
before the Closing Date, CAHR shall have delivered certified copies of
resolutions of the Board of Directors of CAHR approving and authorizing the
execution, delivery and performance of this Agreement me authorizing all of the
necessary and proper action to enable CAHR to comply with the terms of this
Agreement including the election of Seller's nominees to the Board of Director
of CAHR and all matters outlined herein.
(e) The
holders of a majority of CAHR's issued and outstanding common stock shall have
duly approved all applicable matters described in this Agreement in accordance
with applicable law.
(f) At
the Closing, all instruments and documents delivered to the Seller pursuant to
the provisions hereof shall be reasonably satisfactory to legal counsel for
Seller.
(h) The
CAHR Shares to be issued to the Seller at Closing will be validly issued
non-assessable and fully-paid under applicable corporation law and will he
issued in compliance with all federal, state and applicable securities
laws.
(i) At
the Closing, CAHR shall have delivered to the Seller an opinion of its counsel
dated as of the Closing to the effect that
(i) CAHR
is a corporation duly organized, validly existing and in good standing under the
laws of the jurisdiction of incorporation;
(ii) CAHR
and its shareholders have authorized the execution, delivery and performance of
this Agreement by all necessary corporate action, and subject to certain
limitations relating to bankruptcy, insolvency, reorganization, fraudulent
conveyance or similar laws, rules and regulations affecting enforcement of
creditors' rights and remedies generally, the Agreement is a valid and binding
obligation of CAHR enforceable in accordance with its terms.
(iii) The
CAHR Shares to be issued pursuant to Section 2 hereof, when issued, will be duly
and validly issued, fully-paid and non-assessable;
(iv) CAHR
has the corporate power to execute, deliver and perform all of its obligations
under this Agreement.
7. CONDITIONS
PRECEDENT TO THE OBLIGATIONS OF CAHR.
All
obligations of CAHR under this Agreement are subject to the fulfillment, prior
to or at the Closing, of each of the following conditions:
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(a) The
representations and warranties regarding the Seller contained in this Agreement
or in any certificate or document delivered pursuant to the provisions hereof
shall be true in all material respects at and as of the closing as though such
representations and warranties were made at and as of such time.
(b ) The
Seller shall have performed and complied with, in all material respects, all
covenants, agreements, and conditions required by this Agreement to be performed
or complied with by them prior to or at the Closing.
8. PRESS
RELEASES. CAHR and Seller shall consult with the other as to the form and
substance of any press release or other public disclosure of matters related to
this Agreement or any of the transactions described herein; provided however,
that nothing in this Section shall be deemed to prohibit any party hereto from
making any disclosure that is required to fulfill such party's disclosure
obligations imposed by law, including, without limitation federal securities
laws provided that the disclosing party shall provide the non-disclosing party
with reasonable advance notice thereof and any text of such
disclosure.
9. INDEMNIFICATION.
For a period of two years from the Closing Date, CAHR agrees to indemnify
and hold harmless the Seller, and the Seller agrees to indemnify and hold
harmless CAHR against and in respect of any liability, damage or deficiency, all
actions, suits, proceedings, demands, assessments, judgments, costs and expenses
including reasonable attorney's fees incident of any of the forgoing, resulting
from any material misrepresentations made by an indemnifying party to an
indemnified party, an indemnifying party's to a material breach of a covenant,
representation of warranty, or an indemnifying party's non-fulfillment of any
agreement hereunder or form any material misrepresentation in or omission from
any certificate furnished or to be furnished hereunder.
10. NATURE
AND SURVIVAL OF CONDITIONS. All
representations, warranties and covenants made by any party in this Agreement
shall survive the Closing and the consummation of the transactions contemplated
hereby for two years from the Closing. All of the parties hereto are executing
and carrying out the provisions of this Agreement in reliance solely on the
representations, warranties and covenants and agreement contained in this
Agreement and not upon any investigation upon which it might have made or any
representation, warranty, agreement, promise or information, written or oral,
made by the other party or any other person other than as specifically set forth
herein.
11. DOCUMENTS
AT CLOSING. At the Closing, the following documents shall be
delivered:
(a)
Seller will deliver, or will cause to be delivered, to CAHR the
following:
(i) A
certificate or electronic report from the jurisdiction of incorporation of MSO,
as applicable, dated at or about the closing to the effect that MSO is in good
standing under the laws of said jurisdiction;
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(ii) As
applicable, corporate
resolutions of the MSO's Board of Directors authorizing the transactions
described in this Agreement.
(iii)
such other instruments, documents and certificates, if any, as are required to
be delivered pursuant to the provisions of this Agreement
(iv) all
other items, the delivery of which is a condition precedent to the obligations
of CAHR, as set forth herein;
(b) CAHR
will deliver or cause to be delivered to the Momentum Stockholders;
(i) stock
certificates representing those securities of CAHR to be issued as a part of the
exchange as described in this Agreement;
(ii) a
certificate of the President and Secretary of CAHR, to the effect that, to the
best of their knowledge and belief, all representations and warranties of CAHR
made under this Agreement are true and correct as of the Closing. the same as
though originally given to the Momentum Stockholders on said date;
(iii)
certified copies of resolutions adopted by CAHR Board of Directors authorizing
the transactions described herein and all related matters and such consents of
CAHR stockholders as are required to consummate
the transactions described herein;
(iv)
opinion of CAHR counsel that in their opinion there are no outstanding or
impending lawsuits or actions in law that would adversely impact this Agreement
or the execution thereof
(v) such
other instruments and documents as are required to be delivered pursuant to the
provisions of this Agreement
(vi) all
other items, the delivery of which is a condition precedent to the obligations
of the Seller.
12. FINDER
FEES. The Seller and CAHR represents and warrants to each other that none
of them, or any party acting on their behalf, has incurred any liabilities,
either express or implied, to any "broker" or "finder” or similar person in
connection with this Agreement or any of the transaction, contemplated hereby.
In this regard, CAHR on the one hand, and the Seller, on the other hand, will
identify and hold the other harmless from any claim, loss, cost or expense
whatsoever (including reasonable fees and disbursements of counsel) from or
relating to any such express or implied liability.
13. MISCELLANEOUS.
(a) Further Assurance. At
any time and from time to time, after the Closing Date, each party will execute
such additional instruments and take such action as may be
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reasonably
requested by the other party to confirm or perfect title to any property
transferred here under or otherwise to carry out the intent and purposes of this
Agreement.
(b) Waiver. Any failure
on the part of any party hereto to comply with any of its obligations,
agreements or conditions hereunder may be waived in writing by the party to whom
such compliance is owed.
(c) Termination. All
obligations hereunder, may be terminated at the discretion of either CAHR's or
Seller if (i) the closing conditions specified in hereto are not met by February
29, 2008, unless extended, or (ii) any of the representations and warranties
made herein have been materially breached.
(d) Amendment. This
Agreement may be amended only in writing as agreed to by all the parties
hereto.
(e) Notices. All notices
and other communications hereunder shall be in writing and shall be deemed to
have been given if delivered in person or sent by prepaid first class registered
or certified mail, return receipt requested, as follows:
If
to CAHR:
With
a copy to:
If
to Seller:
With
a copy to:
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CEO
Caribbean
American Health Resorts, Inc.
0000
Xxxxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxxxx
Xxxxx, XX 00000
Dennis
P R Codon, Esq.
Robins,
Kaplan, Miller, Ciresi, LLP
0000
Xxxxxxx Xxxx Xxxx, Xxxxx 0000
Xxx
Xxxxxxx, XX 00000
FAX:
(000) 000-0000.
CEO
Dr.
Xxxxxx Xxxxx
Momentum
Medical Inc
00000
Xxxxxxx Xxxx.
Xxxxx
Xxxxxxxxx, XX 00000
Xxxxxx
Xxxxxxxx, Attorney
000
Xxxxxxxx Xxxx., Xxx. 000
Xxxxx
Xxxxxx, XX 00000
FAX:
(000) 000-0000
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(f) Headings. The section
and subsection headings in this Agreement arc inserted for convenience only and
shall not affect in any way the meaning or interpretation of this
Agreement.
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(g) Counterparts. This
Agreement may be executed simultaneously in two or more counterparts; each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
(h) Binding Effect. This
Agreement shall be binding upon the parties hereto and inure to the benefit of
the parties, their respective heirs, administrators, executors, successors and
assigns.
(i) Entire Agreement.
This Agreement and the attached Exhibits constitute the entire agreement
of the parties covering everything agreed upon or understood with respect to the
subject matter hereof. There are no oral promises, conditions, representations,
understandings, interpretations or terms of any kind as conditions or
inducements to the execution hereof
(j) Time. Time is of the
essence.
(k)
Severability.
If any part of this Agreement is deemed to be unenforceable the balance
of the Agreement shall remain in full force and effect.
(1) Governing Laws. This
Agreement shell be governed by, and construed and enforced in accordance with,
the Laws of the State of Minnesota, without regard to conflicts or choice of law
provisions of the State of Minnesota.
(m) Extraordinary Remedies.
To the extent cognizable at law, the parties hereto, in the event of
breach and in addition to any and all other remedies available thereto, may
obtain injunctive relief, regardless of whether the injured party can
demonstrate that no adequate remedy exists at law
(n) Amendments or Addenda.
All amendments, addenda modifications, or changes to this contract are
shown on in an attached hereto and made a part hereof
(o)
Initials and
Exhibits. This contract shall not be valid and enforceable unless it is
properly executed by Buyer and Seller and their initials affixed to each page of
the exhibits attached hereto and made a part hereof
(p) Responsibility and Costs.
Except as may be agreed by the parties, all fees, expenses and
out-of-pocket; costs and expenses including without limitation fees and
disbursements of counsel, financial advisors and accountants, incurred by the
parties hereto shall be borne solely and entirely by CAHR.
(q)
Parties in
Interest: No third Beneficiaries. Except as otherwise provided herein,
the terms and conditions of this Agreement shall tenure to the benefit of and be
binding upon the respective heirs, legal representatives, successors and assigns
of the parties hereto. This Agreement shall not be deemed to confer upon any
person not a party hereto any rights or remedies hereunder.
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IN
WITNESS WHEREOF, the parties have executed this Agreement the day and year first
above written.
CARIBBEAN
AMERICAN HEALTH RESORTS, INC.
Xxx
Xxxxxx, President
By:
/s/ Xxxxxx
Xxxxxx
Xxxxxx
Xxxxx, SELLER
By:
/s/ Xxxxxx
Xxxxx
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EXHIBIT
"A"
DESCRIPTION
OF MSO
The
HPHPRE LLC, the MSO that contains all assets associated with or relating to that
certain business establishments and medical clinics known and commonly referred
to as Dr. Xxxxxx Xxxxx and Momentum Medical Group Inc., including but not
limited to trade name, all leasehold improvements, inventory fixtures, utility
deposits, and any and all other security deposits, and any and all other items
normally considered and commonly referred to as assets to the extent such assets
are transferable under applicable law.
All
liabilities and obligations currently outstanding on the business and all
liabilities and obligations which will occur in the future as a result of the
normal operations of the business prior to the closing date and
All
leasehold interest and leasehold agreement(s) currently in force between Seller
and Seller's landlord.
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EXHIBIT
"B"
METHOD OF
PAYMENT OF PURCHASE PRICE
PAYMENT.
The Purchase Price shall be paid as follows:
(a)
5,000,000 shares of un-issued common stock of CAHR Shares such CAHR Shares shall
hear the following or similar restrictive legend:
The
shares of common stock represented by this certificate have not been registered
under the Securities Act of 1933, as amended (the "Act") and may not be offered,
sold, assigned, pledged, hypothecated or otherwise transferred unless (1) they
are registered under the Act or (2) the holder has delivered to the issuer an
opinion of counsel, which opinion shall be satisfactory to the issuer, to the
effect that there is an available exemption from registration under the Act and
any applicable state securities laws or that registration is otherwise not
required.
(b) A
PROMISSORY NOTE in the amount of $3,000,000 for the benefit of the Seller in the
form attached and incorporated by reference
(c)
A VOTING TRUST AGREEMENT in the form attached and incorporated by
reference.
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EXHIBIT
"C"
POST
EXECUTION EVENTS
Upon
execution of this Agreement, the following shall be actions shall be
accomplished and documents executed and
delivered:
(a) CAHR
shall promptly, at its expense, fulfill its responsibility to prepare and file
appropriate all applicable reports with the Securities and Exchange Commission
(the "SEC'), and any registration statements and/or proxy filings, as may be
required.
(b) CAHR
shall immediately file an amendment to the Articles o f Incorporation to change
the name of Momentum Medical Inc to CAHR Medical, MSO or such as directed by the
Board of Directors.
(c) CAHR
shall immediately record the minutes of the meeting of the shareholders and of
the Board of Directors of CAHR authorizing the following:
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(i)
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Election
of Xxxxxx Xxxxx, Xxxxx Xxxxx, Xxxx Xxxxx, Xxx Xxxxxx and Xxxx Xxxx as
directors of CAHR and after the election they will be the only directors
of the corporation.
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(ii) | Appointment of and their acceptance of title by said officers. | |
(iii) | Ratification of an EMPLOYMENT CONTRACT for each of the officers listed in (c) (iii) |
(d) Prior
to Closing, there shall be no stock dividend, stock split, recapitalization or
exchange of shares with respect to or rights issued in respect of CAHR's capital
stock after the date hereof and there shall be no dividends paid on CAHR's
capital stock.
(e) CAHR
shall have received all requisite Board of Directors, stockholder and other
approvals, if any, of the matters set forth herein.
(d) CAHR
agrees that it will cause its transfer agent, without unnecessary delay, to
transfer those outstanding CAHR shares of common stock that are publicly resold
pursuant to the resale provisions of Rule 144 of the Securities 1933, as amended
to Seller.
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