Document:

exhibit10_1.htm

    
      
         

      

      
        Execution Copy  

        
          

        

      

      
         

      

    

    Loan
Agreement

    

    Dated
as of May 12, 2009

    

    
      	
              By
      and between:

            	
              Hotel Outsource Management
      International, Inc., a Delaware corporation whose address for the
      purposes of notices sent under this Agreement shall be One Embarcadero
      Center, Suite 500, San Francisco CA 94111, Fax: +1-415-433 5994, e-mail:
      jackronnel@my-homi.com;
      with a copy to Reif & Reif Law Offices, 17-4 Yitzchak Rabin Rd., Bet
      Shemesh 99585, Israel, Fax: +972-2-999-7993, e-mail: Mail@ReifLaw.com
      (the “Borrower”);

            

    

    

    
      	
              And:

            	
              Avraham Bahry, of 1 Gan
      HaShikmim Street, Ganei-Yehuda - Savyon 56905, Israel (the “Lender”);

            

    

    

    
      	
              Whereas:

            	
              Borrower
      requires immediate funds, which, in the current economic climate, it has
      not been able to obtain in a timely manner from banking institutions, as
      interim financing until receipt of the proceeds which it anticipates
      receiving from the rights offering which was approved by Borrower’s Board
      of Directors on March 26, 2009 and which Borrower expects to proceed as
      soon as an appropriate SEC Registration Statement becomes effective (forms
      are currently being drafted by Borrower’s US Legal Counsel) (the “Rights Offering”);
      and

            

    

     

    
      	
              Whereas:

            	
              Borrower
      has requested that Lender, who holds office as Chairman of Borrower,
      assist Borrower by agreeing to loan such funds to Borrower in the amount
      and under the terms set forth in this Agreement below;
  and

            

    

     

    
      	
              Whereas:

            	
              Lender
      is willing to make a loan to Borrower, all subject to and in accordance
      with the terms of this Agreement;

            

    

     

     

    Therefore,
the parties have made condition and agreed as follows:

     

    
      	
              1.  

            	
              The
      Loan

            

    

     

     

    
      	
              1.1  

            	
              Upon
      the terms and conditions set forth in this Agreement, Lender agrees to
      loan to Borrower the principal amount of $200,000.- (two hundred thousand
      US Dollars) (the “Loan”).

            

    

     

    
      	
              1.2  

            	
              The
      Loan will be made available to Borrower within 3 business days of the date
      hereof (hereinafter: the “Loan Date”), by means
      of:

            

    

     

    
      	
              a.  

            	
              one
      or more bank transfers in the total aggregate amount of $125,000, to
      Borrower’s account No. 703200/66 at Bank Leumi, branch No. 809 in
      Tel-Aviv, Israel;

            

    

     

    
      	
              b.  

            	
              one
      or more bank transfers in New Israeli Shekels in a total aggregate amount
      equal to $75,000 according to the Dollar/Shekel Representative Rate of
      Exchange last published prior to the transfer directions being given by
      Lender, to Borrower’s account No. 703200/66 at Bank Leumi, branch No. 809
      in Tel-Aviv, Israel.

            

    

     

    
      	
              2.  

            	
              Interest

            

    

     

     

    
      	
              2.1  

            	
              Borrower
      shall pay interest on the entire outstanding balance of the Loan,
      commencing as of the Loan Date, at the rate of 6% per annum (the “Interest”).

            

    

     

    
      	
              2.2  

            	
              On
      the Repayment Date (as defined below), Borrower shall pay to Lender all of
      the Interest that has accrued and is outstanding on the Loan up until that
      date.

            

    

     

    
      	
              3.  

            	
              Repayment

            

    

     

     

    
      	
              3.1  

            	
              Borrower
      shall repay the entire Loan, with all accrued Interest, in a single, cash
      payment to Lender, no later than the 4 month anniversary of the Loan Date
      (the “Repayment
      Date”).

            

    

     

    
      
        
          2

           

        

      

      
        
          
            Loan
Agreement: HOMI - Bahry

            Execution
Copy

          

        

        
          

        

      

      
         

      

      
         

      

    

    
      	
              3.2  

            	
              Notwithstanding
      the foregoing, and notwithstanding Lender’s declaration that, as at the
      date hereof, he would prefer for the Loan to be repaid in cash, Lender
      nevertheless agrees that Borrower may elect to effect repayment of any
      part, or all, of the Loan and/or accrued Interest, to Lender, no later
      than the Repayment Date, by means of the issue to Lender of shares of
      Borrower’s common stock. The purchase price of each share so issued shall
      be deemed to be the same price per share as in the Rights Offering (the
      “Price Per
      Share”), such that the outstanding balance of the Loan plus accrued
      Interest shall be reduced, at the time of issue of such shares, by the
      quantity of shares so issued multiplied by the Price Per Share. If, for
      example, the Price Per Share is $0.04 and if the Repayment Date falls
      exactly on the 4 month anniversary of the Loan Date, and the outstanding
      balance of the Loan plus the accrued Interest is $204,000, then the issue,
      on that date, of 5,100,000 shares of Borrower’s common stock, to Lender’s
      order, as set forth herein, would constitute full repayment of the Loan
      and all accrued Interest.

            

    

     

    For
any sums that may be payable by Lender in the Rights Offering, in respect of
shares which Lender may subscribe for in such Rights Offering, up to the total
amount then owed by Borrower to Lender under this Agreement, Lender, or
Borrower, may elect, by written notice to the other, that such sums be offset
against the outstanding balance of the Loan and accrued Interest then owed to
Lender.

     

    
      	
              3.3  

            	
              If
      Borrower elects to repay any part of the Loan and/or accrued Interest by
      means of the issue of shares as set forth in Section 3.2 above, then the
      shares must be duly issued in Lender’s name, or to his order, and
      registered in Lender’s name, or to his order, in Borrower’s share
      register, and duly executed share certificates must be delivered to
      Lender, or to his order, all no later than the Repayment
    Date.

            

    

     

    
      	
              3.4  

            	
              For
      avoidance of any doubt, Borrower undertakes to fully repay the Loan and
      all accrued Interest, no later than the Repayment Date, either by means of
      a cash payment as set forth in Section 3.1 above, or by means of a share
      issue, as set forth in Sections 3.2 and 3.3 above, or by means of a
      combination of such cash payment and such share
  issue.

            

    

     

    
      	
              3.5  

            	
              Borrower
      may at any time prepay to Lender any part of the outstanding balance of
      the Loan and accrued Interest, by any of the methods set forth in Section
      3.4 above.

            

    

     

    
      	
              3.6  

            	
              Without
      derogating from any statutory remedies and/or other remedies available
      under the terms of this Agreement, if Borrower is in default under this
      Agreement and does not fully repay the Loan and accrued Interest in the
      manner set forth above, no later than the Repayment Date, then Lender
      shall be entitled to elect, by means of written notice to Borrower,
      whether repayment of the outstanding balance of the Loan and accrued
      Interest must be made by means of cash payment, or by means of share issue
      under the principles outlined above, or by a combination of these methods,
      and Borrower undertakes to comply with such election by
      Lender.

            

    

     

    
      	
              4.  

            	
              Late
      Payment

            

    

     

     

    Without
derogating from any statutory remedies and/or other remedies available under the
terms of this Agreement, any sums not paid by Borrower at the appointed time
under this Agreement shall be  subject to interest at the highest rate
of interest then charged by Bank Leumi of Israel in respect of Dollar sums
overdrawn beyond an agreed credit facility, such interest to accrue from the
date payment was originally due until the date of actual payment; this interest
rate shall initially be determined on the date payment was originally due, and
thereafter monthly until the date of actual payment. Nothing in this Section 4
may be construed in any way as derogating from Borrower’s undertaking and
obligation to repay the Loan and pay the Interest as set forth above. Arrears
interest accruing pursuant to the terms of this Section 4 shall, for all intents
and purposes, be deemed part of the Interest, as defined herein.

     

    
      	
              5.  

            	
              Specified Purpose of
      Loan

            

    

     

     

    
      	
              5.1  

            	
              The
      Parties hereby confirm and agree that Borrower requested the Loan for the
      sole purpose of using all of said Loan to finance its activity in the
      ordinary course of business, including making financing available to one
      or more of its subsidiaries, to finance their activity in the ordinary
      course of business (the “Specified
      Purpose”).

            

    

     

    
      
        
          3

           

        

      

      
        
          
            Loan
Agreement: HOMI - Bahry

            Execution
Copy

          

        

        
          

        

      

      
         

      

       

    

    
      	
              5.2  

            	
              Borrower
      hereby undertakes to use the Loan solely for the Specified Purpose and not
      to use any part of the Loan for any purpose other than the Specified
      Purpose.

            

    

     

    
      	
              5.3  

            	
              Borrower
      hereby recognizes and acknowledges that Lender’s consent to make the Loan
      to Borrower in accordance with the terms hereof is inter alia subject to
      and in reliance upon Borrower’s undertaking as set forth in Section 5.2
      above, which is a fundamental condition of this
  Agreement.

            

    

     

    
      	
              6.  

            	
              Borrower’s General
      Covenants

            

    

     

     

    
      	
              6.1  

            	
              Borrower
      shall keep proper records and books of account in accordance with
      generally accepted accounting principles consistently applied, and shall
      maintain, preserve and keep all of its properties and assets in good
      working order and condition, subject to ordinary wear and
      tear.

            

    

     

    
      	
              6.2  

            	
              Borrower
      shall conduct its affairs in such manner as is appropriate for a public
      company whose shares are traded on the New York OTCBB, and in accordance
      with all laws and regulations by which it is
  bound.

            

    

     

    
      	
              6.3  

            	
              Other
      than in the ordinary course of business or otherwise as agreed to in
      writing by the Lender, on a case by case basis, Borrower shall not create,
      incur, or assume any indebtedness, nor shall it create incur, assume or
      suffer any mortgage, pledge, lien, security interest, charge or
      encumbrance of any kind or nature in or upon any of its property or
      assets, whether now owned or hereafter acquired, nor shall it sell, lease,
      assign, transfer or otherwise dispose of any of its assets, including its
      accounts receivable.

            

    

     

    
      	
              7.  

            	
              Representations and
      Warranties

            

    

     

     

    Borrower
hereby represents and warrants to Lender as follows:

     

    
      	
              7.1  

            	
              that
      it is duly organized and existing under the laws of the jurisdiction in
      which it was incorporated, with the requisite corporate or other power to
      own and operate its properties and assets, and to carry on its business as
      presently conducted and to execute and perform its obligations under this
      Agreement;

            

    

     

    
      	
              7.2  

            	
              that
      this Agreement is valid and binding upon it and it is bound by it and
      obliged to act in accordance with its terms; and that the execution and
      performance by it of this Agreement, and compliance therewith, and the
      consummation of the transactions contemplated by this Agreement will not
      result in any violation of and will not conflict with, or result in a
      breach of any of the terms of, or constitute a default under, any
      document, other obligation, law, regulation or order to which it is or
      will be party or by which it is or will be
  bound;

            

    

     

    
      	
              7.3  

            	
              that
      all actions on its part and on the part of its directors, required for the
      authorization, execution, and performance by it, of this Agreement, and
      the consummation of all the transactions contemplated herein, have been
      obtained, or that they will be obtained within 30 days of the date hereof
      and until such time as they are obtained no use will be made of the Loan,
      which will, until such time, be deemed held in trust for Lender by
      Borrower;

            

    

     

    
      	
              7.4  

            	
              that
      this Agreement and the entire contents thereof do not require that any
      notice be made to any authorities, other than
      notice which has already been made by Borrower or which will be made by
      Borrower in a timely manner (such as a Form 8-K), in accordance with all
      laws and regulations by which Borrower is bound, in accordance with
      directions which Borrower will receive from its US Legal
      Counsel.

            

    

     

    
      	
              8.  

            	
              Events of
      Default

            

    

     

     

    The
occurrence and continuation of any of the following events shall be considered
an Event of Default upon the occurrence of which the entire unpaid balance of
the Loan and Interest, and all reasonable costs of collection, including
reasonable attorney fees and expenses, shall become immediately due and
payable:

     

    
      	
              8.1  

            	
              Borrower
      shall fail to make any payment which it is obliged to make under the terms
      of this Agreement and such failure is not fully remedied within thirty
      (30) days after the occurrence
thereof;

            

    

     

    
      
        
          4

           

        

      

      
        
          
            Loan
Agreement: HOMI - Bahry

            Execution
Copy

          

        

        
          

        

      

      
         

      

       

    

    
      	
              8.2  

            	
              for the avoidance of doubt it
      is hereby stipulated and emphasized that it is the fundamental obligation
      and undertaking of Borrower to repay the Loan and pay the Interest, in
      their entirety, on the Repayment Date, and that failure by Borrower to
      repay the Loan and pay the Interest, in their entirety, on the Repayment
      Date, shall be considered an Event of Default, regardless of the reason
      for such failure, and without Lender being required to deliver any kind of
      notice to Borrower;

            

    

     

    
      	
              8.3  

            	
              Borrower
      shall default in the performance of any material covenant or obligation
      contained herein or in any other agreement, debenture, pledge, promissory
      note or other instrument of indebtedness with Lender and such default is
      not remedied within thirty (30) days after the occurrence
      thereof;

            

    

     

    
      	
              8.4  

            	
              Borrower
      uses and/or attempts and/or permits use of the Loan, or any part thereof,
      for any purpose other than the Specified
  Purpose;

            

    

     

    
      	
              8.5  

            	
              any
      representation or warranty made by or on behalf of Borrower to Lender,
      howsoever in connection with the Loan and/or this Agreement, shall at any
      time prove to have been incorrect or
misleading;

            

    

     

    
      	
              8.6  

            	
              any
      judgment materially affecting the ability of Borrower to repay the Loan
      and pay the Interest shall be entered against Borrower or any attachment,
      levy or execution against a substantial portion of its properties shall
      remain unpaid, or shall not be released, discharged, dismissed, suspended
      or stayed for a period of thirty (30) days or more after its entry, issue
      or levy, as the case may be;

            

    

     

    
      	
              8.7  

            	
              any
      proceedings seeking to declare Borrower bankrupt, or insolvent, or seeking
      liquidation, winding up, reorganization, arrangement with creditors,
      composition of debts or any other similar proceedings shall be initiated
      against Borrower, and such proceeding shall not be dismissed within thirty
      (30) days;

            

    

     

    
      	
              8.8  

            	
              any
      event shall occur materially affecting the ability of Borrower to repay
      the Loan and pay the Interest under the terms of this
      Agreement.

            

    

     

    
      	
              9.  

            	
              Miscellaneous

            

    

     

     

    
      	
              9.1  

            	
              In
      view of the fact that Lender is a shareholder in Borrower and is currently
      the Chairman of Borrower’s Board of Directors, Lender hereby agrees that,
      so long as he owns more than 1% of Borrower’s issued and outstanding share
      capital or is a member of Borrower’s Board of Directors, he will not
      participate in any vote taken by any of the organs within Borrower’s
      corporate structure in connection with this Agreement. This clause is in
      addition to, and without derogating from, the provisions of applicable law
      that may apply to this Agreement in connection with its being an agreement
      between a corporation and individuals who are shareholders and directors
      of that corporation.

            

    

     

    
      	
              9.2  

            	
              Lender
      shall be entitled, at any time and without requiring the consent of
      Borrower or any other individual, to assign all or any part of his rights
      under this Agreement, to any other entity. Borrower shall not be entitled
      to assign all or any part of its rights and/or obligations under this
      Agreement, without Lender’s advance written
  consent.

            

    

     

    
      	
              9.3  

            	
              No
      Amendment to this Agreement, or any part thereof, shall be valid or
      binding upon the Parties unless drawn up in writing and signed by both
      Parties.

            

    

     

    
      	
              9.4  

            	
              As
      used in this Agreement, the term “including”, and all derivations thereof,
      shall mean “including, without limitation”, unless expressly stipulated to
      the contrary. Where the context permits, use of the singular number
      includes the plural and vice versa and words denoting any gender shall
      include all genders. The Preamble, and any Appendices, Exhibits or
      Schedules to this Agreement, constitute an integral part hereof. Section
      headings are for convenience purposes only, and may not be used in the
      construction or interpretation of this
  Agreement.

            

    

     

    
      	
              9.5  

            	
              No
      failure or delay on the part of any party in exercising any right and/or
      remedy to which it may be entitled hereunder and/or by law shall operate
      as a waiver by that party of any right whatsoever. No waiver of any right
      under this Agreement shall be deemed as a waiver of any further or future
      right hereunder, whether or not such right is the same kind of right as
      was waived in a previous instance.

            

    

     

    
      
        
          5

           

        

      

      
        
          
            Loan
Agreement: HOMI - Bahry

            Execution
Copy

          

        

        
          

        

      

      
         

      

       

    

    
      	
              9.6  

            	
              In
      case any provision of the Agreement shall be declared invalid, illegal or
      unenforceable, the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby and shall
      continue in full force and effect.

            

    

     

    
      	
              9.7  

            	
              This
      Agreement constitutes the entire agreement between the parties with
      respect to the subject matter hereof and replaces any previous agreements
      between the parties, if at all, whether written or verbal, pertaining to
      any of the subject-matter hereof.

            

    

     

    
      	
              9.8  

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of Israel, without regard to its rules of conflict of laws. The parties
      hereby agree and submit to the exclusive jurisdiction of the competent
      courts in the city of Tel-Aviv, with respect to any claim or dispute
      arising out of and/or in connection with this Agreement. For this purpose,
      Borrower hereby gives notice that an address for service of court papers
      in any action relating to this Agreement shall be c/o HOMI Israel Ltd.,
      Gav-Yam Center, Building #3, 3rd Floor, 9 Shenkar Street, Herzliya Pituach
      46725, Israel.

            

    

     

    
      	
              9.9  

            	
              Notices
      sent by one party to the other under this Agreement will be sent by
      registered mail to the addresses specified herein, delivered by hand, or
      transmitted by fax and will be deemed to have reached their destination
      within 5 days of being deposited with the Post Office for dispatch as
      registered mail (10 days in the case of air mail), upon actual delivery
      when delivered by hand, and upon receipt of the recipient’s confirmation
      of receipt when sent by fax.

            

    

     

    
      	
              9.10  

            	
              This
      Agreement may be executed in any number of counterparts, in original or by
      facsimile, and each such counterpart hereof shall be deemed to be an
      original instrument, but all such counterparts together shall constitute
      one and the same agreement.

            

    

     

    In witness whereof the
parties have executed this

     

    Loan Agreement on the date
first above written:

     

    

     

    SIGNED
for and on behalf
of                                                                       
)

    Hotel Outsource Management
International,
Inc.                                 
 )

                      
)

    By:  Daniel
Cohen; Jacob
Ronnel                                                              )

    

     

    SIGNED
by:                                                                                                )

    Avraham
Bahry                                                                                         )EQUAL HOUSING OPPORTUNITY

EXHIBIT 10.5

CONTRACT FOR THE SALE AND PURCHASE OF REAL ESTATE

(NO BROKER)

WARNING: THIS CONTRACT HAS SUBSTANTIAL LEGAL CONSEQUENCES

AND THE PARTIES ARE ADVISED TO CONSULT LEGAL AND TAX COUNSEL.

FOR VALUABLE CONSIDERATION OF TEN DOLLARS and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Medical Connections, Inc. ___________________________ _______________________________ (Seller), whether one or more, and Lou Sitaras____________________ ________________________________________________(Buyer), whether one or more, do hereby covenant, contract and agree as follows:

1.

AGREEMENT TO SALE AND PURCHASE:

Seller agrees to sell, and Buyer agrees to  buy from Seller the property described as follows: (complete adequately to identify property)

Iredell         County, North Carolina. 

Address: 226 Grayrock Dr., Statesville, NC 28677                                                                          

Legal Description (or see attached exhibit): Lot 28 Grayrock Shoals PB 23-129, 129A ________

_____________________________________________________________________________

_____________________________________________________________________________

 ̈ As described in attached Exhibit.

Together with the following items, if any: (Strike items to be retained by Seller) curtains and rods, draperies and rods, valances, blinds, window shades, screens, shutters, awnings, wall-to-wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system with controls and equipment, permanently installed heating and air-conditioning units, window air-conditioning units, built-in security and fire detection equipment, plumbing and lighting fixtures including chandeliers, water softener, stove, built-in kitchen equipment, garage door openers with controls, built-in cleaning equipment, all swimming pool equipment and maintenance accessories, shrubbery, landscaping, permanently installed outdoor cooking equipment, built-in fireplace screens, artificial fireplace logs and all other property owned by Seller and attached to the above described real property except the following property which is not included (list items not included):

____________________________________________________________________________________________

____________________________________________________________________________________________

All property sold by this contract is called the "Property." 

2.

SALES PRICE:

The parties agree to the following sales price:

			
	 
	Amount

	Amount

	Purchase Price

	$400,000.00

	 

	Earnest Money

	 
	$

	New Loan

	$400,000.00

	Assumption of Loan

	$

	Seller Financing

	$

	Cash at Closing

	$

	Total ( both columns should be equal)

	$400,000.00

	$400,000.00

Both columns should be an equal amount.

If the unpaid principal balance(s) of any assumed loan(s), if any, as of the Closing Date varies from the loan balance(s) stated above, the cash payable at closing will be adjusted by the amount of any variance.

			
	Buyer Initials _____   ______

	- 1 -

	Seller Initials ______   ______

3.

FINANCING:   The following provisions apply with respect to financing:

 ̈

CASH SALE:  This contract is not contingent on financing.

 ̈

OWNER FINANCING:  Seller agrees to finance _____________ dollars of the purchase price pursuant to a promissory note from Buyer to Seller of $_______, bearing ______% interest per annum, payable over a term of ______ years with even monthly payments, secured by a deed of trust or mortgage lien with the first payment to begin on the ___ day of ________ 20____.

ý

NEW LOAN OR ASSUMPTION:  This contract is contingent on Buyer obtaining financing.  Within 10 days after the effective date of this contract Buyer shall apply for all financing or noteholder's approval of any assumption and make every reasonable effort to obtain financing or assumption approval. Financing or assumption approval will be deemed to have been obtained when the lender determines that Buyer has satisfied all of lender's financial requirements (those items relating to Buyer's net worth, income and creditworthiness). If financing or assumption approval is not obtained within 30   days after the effective date hereof, this contract will terminate and the earnest money will be refunded to Buyer. If Buyer intends to obtain a new loan, the loan will be of the following type:

ý Conventional     ̈ VA    ̈  FHA   ̈  Other:

The following provisions apply if a new loan is to be obtained:

FHA. It is expressly agreed that notwithstanding any other provisions of this contract, the Purchaser (Buyer) shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the Purchaser (Buyer) has been given in accordance with HUD/FHA or VA requirements a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct Endorsement lender setting forth the appraised value of the Property of not less than $____________ . The Purchaser (Buyer) shall have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the Property. The Purchaser (Buyer) should satisfy himself/herself that the price and condition of the Property are acceptable.

VA. If Buyer is to pay the purchase price by obtaining a new VA-guaranteed loan: It is agreed that, notwithstanding any other provisions of this contract, Buyer shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the Property described herein, if the contract purchase price or cost exceeds the reasonable value of the Property established by the Veterans Administration. Buyer shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Veterans Administration.

Existing Loan Review. If an existing loan is not to be released at closing, Seller shall provide copies of the loan documents (including note, deed of trust or mortgage, modifications) to Buyer within _______calendar days from acceptance of this contract. This contract is conditional upon Buyer's review and approval of the provisions of such loan documents. Buyer consents to the provisions of such loan documents if no written objection is received by Seller from Buyer within __________________________________calendar days from Buyer's receipt of such documents. If the lender's approval of a transfer of the Property is required, this contract is conditional upon Buyer's obtaining such approval without change in the terms of such loan, except as may be agreed by Buyer. If lender's approval is not obtained on or before __________________________________, this contract shall be terminated on such date. The Seller  ̈ shall  ̈ shall not, be released from liability under such existing loan. If Seller is to be released and release approval is not obtained, Seller may nevertheless elect to proceed to closing, or terminate this agreement in the sole discretion of Seller.

			
	Buyer Initials _____   ______

	- 2 -

	Seller Initials ______   ______

Credit Information. If Buyer is to pay all or part of the purchase price by executing a promissory note in favor of Seller or if an existing loan is not to be released at closing, this contract is conditional upon Seller's approval of Buyer's financial ability and creditworthiness, which approval shall be at Seller's sole and absolute discretion. In such case: (l) Buyer shall supply to Seller on or before ______ _______________ , at, Buyer's expense, information and documents concerning Buyer's financial, employment and credit condition; (2) Buyer consents that Seller may verify Buyer's financial ability and creditworthiness; (3) any such information and documents received by Seller shall be held by Seller in confidence, and not released to others except to protect Seller's interest in this transaction; (4) if Seller does not provide written notice of Seller's disapproval to Buyer on or before _________________________________, ______________, then Seller waives this condition.

4.

EARNEST MONEY: Buyer shall deposit $ -0-                     as earnest money with upon execution of this contract by both parties.

5.

PROPERTY CONDITION:

PROPERTY DISCLOSURE STATEMENT:  [check one]

 ̈Buyer has received a copy of the N.C. Residential Property Disclosure Statement prior to signing this Contract.

ý Buyer has NOT received a copy of the N.C. Residential Property Disclosure Statement prior to signing this Contract, and shall have the right to terminate or withdraw this contract without penalty prior to WHICHEVER OF THE FOLLOWING EVENTS OCCURS FIRST: (1) The end of the third calendar day following the receipt of the Disclosure Statement; (2) the end of the third calendar day following the date the Contract was made; or (3) Closing or occupancy by the Buyer in the case of a sale or exchange.

 ̈ Owner is exempt from furnishing a N.C. Residential Property Disclosure Statement because: ________________ ________________________________________________________________________________

SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by Federal law for a residential dwelling constructed prior to 1978.  An addendum providing such disclosure:  ̈is attached; ýis not applicable.

Buyer hereby represents that he has personally inspected and examined the above-mentioned premises and all improvements thereon. Buyer hereby acknowledges that unless otherwise set forth in writing elsewhere in this contract neither Seller nor Seller's representatives, if any, have made any representations concerning the present or past structural condition of the improvements.  Buyer and Seller agree to the following concerning the condition of the property:

ý

Buyer accepts the property in its "as-is" and present condition.

 ̈

Buyer may have the property inspected by persons of Buyer's choosing and at Buyer's expense.  If the inspection report reveals defects in the property, Buyer shall notify Seller within 5 days of receipt of the report and may cancel this contract and receive a refund of earnest money, or close this agreement notwithstanding the defects, or Buyer and Seller may renegotiate this contract, in the discretion of Seller.  All inspections and notices to Seller shall be complete within  days after execution of this agreement.

 ̈

Buyer accepts the Property in its present condition; provided Seller, at Seller’s expense, shall complete the following repairs and treatment: ___________________________________________ ________________________________________________________________________________

Buyer agrees that he will not hold Seller or its representatives responsible or liable for any present or future structural problems or damage to the foundation or slab of said property. If the subject residential dwelling was constructed prior to 1978, Buyer may conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards, to be completed within ____ days after execution of this agreement.  In 

			
	Buyer Initials _____   ______

	- 3 -

	Seller Initials ______   ______

the alternative, Buyer may waive the opportunity to conduct an assessment/inspection by indicating said waiver on the attached Lead-Based Paint Disclosure form.

MECHANICAL EQUIPMENT AND BUILT IN APPLIANCES: All such equipment is sold ý"as-is" without warranty, or  ̈shall be in good working order on the date of closing.  Any repairs needed to mechanical equipment or appliances, if any, shall be the responsibility of  ̈Seller  ̈Buyer.

UTILITIES:  Water is provided to the property by _____________________________________, Sewer is provided by _______________________________________. Gas is provided by __________________________________. Electricity is provided by.

Other: Duke Energy ____________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________

The present condition of all utilities is accepted by Buyer.

6.

CLOSING: The closing of the sale will be on or before February              , 2009, unless extended pursuant to the terms hereof.

Closing may be extended to within 7 days after objections to matters disclosed in the title abstract, certificate or Commitment or by the survey have been cured.

If financing or assumption approval has been obtained, the Closing Date will be extended up to 15 days if necessary to comply with lender's closing requirements (for example, appraisal, survey, insurance policies, lender-required repairs, closing documents). If either party fails to close this sale by the Closing Date, the non-defaulting party will be entitled to exercise the remedies contained herein. The closing date may also be extended by written agreement of the parties.

7.

TITLE AND CONVEYANCE: Seller is to convey title to Buyer by Warranty Deed or _____________________ (as appropriate) and provide Buyer with a Certificate of Title prepared by an attorney, title or abstract company upon whose Certificate or report title insurance may be obtained from a title insurance company qualified to do and doing business in the state of North Carolina.  Seller will also execute a Bill of Sale, if necessary, for the transfer of any personal property. Seller shall, prior to or at closing, satisfy all outstanding mortgages, deeds of trust and special liens affecting the subject property which are not specifically assumed by Buyer herein.  Title shall be good and marketable, subject only to (a) covenants, conditions and restrictions of record, (b) public, private utility easements and roads and rights-of-way, (c)  applicable zoning ordinances, protective covenants and prior mineral reservations, (d) special and other assessments on the property, if any, (e) general taxes for the year 2009          and subsequent years and (e) other: ____________________________________________________________________________. Seller agrees to use his best efforts to deliver to Buyer as soon as reasonably possible after the Effective date of this Contract, copies of all the information in possession of or available to Seller, including but not limited to: title insurance, policies, attorney’s opinions on title surveys, covenants, deeds, notes and deeds of trust and easements relating to the Property.  Seller authorizes (1) any attorney presently or previously representing Seller to release and disclose any title insurance policy in such attorney’s file to Buyer and both Buyer’s and Seller’s agents and attorneys; and (2) the Property’s title insurer or its agent to release and disclose all materials in the Property’s title insurer’s or title agent’s file to Buyer and both Buyer’s and Seller’s agents and attorneys.

A title report shall be provided to Buyer at least 5 days prior to closing.  If there are title defects, Seller shall notify Buyer within 5 days of closing and Buyer, at Buyer's option, may either (a) if defects cannot be cured by designated closing date, cancel this contract, in which case all earnest money deposited shall be returned, (b) accept title as is, or (c) if the defects are of such character that they can be remedied by legal action within a reasonable time, permit Seller such reasonable time to perform curative work at Seller's expense.  In the event that the curative work is performed by Seller, the time specified herein for closing of this sale shall be extended for a reasonable period necessary for such action.  Seller represents that the property may be legally used as zoned and that no government agency has served any notice to Seller requiring repairs, alterations or corrections of any existing condition except as 

			
	Buyer Initials _____   ______

	- 4 -

	Seller Initials ______   ______

stated herein.

8.

APPRAISAL, SURVEY AND TERMITE INSPECTION:  Any appraisal of the property shall be the responsibility of :

 ̈Buyer  ̈ Seller.  A survey is:  ̈ not required  ̈ required, the cost of which shall be paid by  ̈Seller  ̈Buyer. A termite inspection is  ̈ not required  ̈ required, the cost of which shall be paid by  ̈ Seller  ̈ Buyer. If a survey is required it shall be obtained within 5 days of closing.

9.

POSSESSION AND TITLE: Seller shall deliver possession of the Property to Buyer at closing. Title shall be conveyed to Buyer, if more than one as  ̈ Joint tenants with rights of survivorship,  ̈ tenants in common,  ̈ Other: _______ Prior to closing the property shall remain in the possession of Seller and Seller shall deliver the property to Buyer in substantially the same condition at closing, as on the date of this contract, reasonable wear and tear excepted.

10.

CLOSING COSTS AND EXPENSES:  The following closing costs shall be paid as provided. (Leave blank if the closing cost does not apply.)

				
	Closing Costs

	Buyer

	Seller

	Both*

	Attorney Fees

	 ̈

	 ̈

	ý

	Title Insurance

	ý

	 ̈

	 ̈

	Title Abstract or Certificate

	 ̈

	ý

	 ̈

	Property Insurance

	ý

	 ̈

	 ̈

	Recording Fees

	 ̈

	 ̈

	ý

	Appraisal

	ý

	 ̈

	 ̈

	Survey

	 ̈

	 ̈

	 ̈

	Termite Inspection

	 ̈

	 ̈

	 ̈

	Origination fees

	ý

	 ̈

	 ̈

	Discount Points

	ý

	 ̈

	 ̈

	If contingent on rezoning, cost and expenses of rezoning

	 ̈

	 ̈

	 ̈

	Other:

	 

	

	 ̈

	 ̈

	 ̈

	

	 ̈

	 ̈

	 ̈

	

	 ̈

	 ̈

	 ̈

	

	 ̈

	 ̈

	 ̈

	

	 ̈

	 ̈

	 ̈

	All other closing costs

	 ̈

	 ̈

	 ̈

* 50/50 between buyer and seller.

11.

PRORATIONS:  Taxes for the current year, interest, maintenance fees, assessments, dues and rents, if any, will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available. If a loan is assumed and the lender maintains an escrow account, the escrow account must be transferred to Buyer without any deficiency. Buyer shall reimburse Seller for the amount in the transferred account. Buyer shall pay the premium for a new insurance policy. If taxes are not paid at or prior to closing, Buyer will be obligated to pay taxes for the current year.

12.

CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss after the effective date of the contract, Seller shall restore the Property to its previous condition as soon as reasonably possible. If Seller fails to do so due to factors beyond Seller’s control, Buyer may either (a) terminate this contract and the earnest money will be refunded to Buyer, (b) extend the time for performance and the Closing Date will be extended as necessary, or (c) accept the Property in its damaged condition and accept an assignment of insurance proceeds. 

13.

DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and 

			
	Buyer Initials _____   ______

	- 5 -

	Seller Initials ______   ______

receive the earnest money as liquidated damages, thereby releasing both parties from this contract. If, due to factors beyond Seller’s control, Seller fails within the time allowed to make any non-casualty repairs or deliver evidence of clean title, Buyer may either (a) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive a refund of the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby releasing both parties from this contract.

14.

ATTORNEY'S FEES: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.

15.

REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer and (b) assumed loans will not be in default. If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the earnest money will be refunded to Buyer. All representations contained in this contract will survive closing.

16.

FEDERAL TAX REQUIREMENT: If Seller is a "foreign person", as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a "foreign person", then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction.

17.

AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement.

18.

NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile machine as follows:

						
	To Buyer at:                                  

	          

	To Seller at:                                                    

	 
	 
	 

	Lou Sitaras

	 
	Medical Connections, Inc.

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	Telephone (   ) 

	 
	 
	Telephone (   )

	 

	 
	 
	 

	Facsimile (   )

	 
	 
	Facsimile (   )

	 

19.

ASSIGNMENT:  This agreement may not be assigned by Buyer without the consent of Seller.  This agreement may be assigned by Seller and shall be binding on the heirs and assigns of the parties hereto.

20.

PRIOR AGREEMENTS: This contract incorporates all prior agreements between the parties, contains the entire and final agreement of the parties, and cannot be changed except by their written consent.  Neither party has relied upon any statement or representation made by the other party or any sales representative bringing the parties together.  Neither party shall be bound by any terms, conditions, oral statements, warranties, or representations not herein contained. Each party acknowledges that he has read and understands this contract. The provisions of this contract shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective parties hereto.  When herein used, the singular includes the plural and the masculine includes the feminine as the context may require.

			
	Buyer Initials _____   ______

	- 6 -

	Seller Initials ______   ______

21.

NO BROKER OR AGENTS:  The parties represent that neither party has employed the services of a real estate broker or agent in connection with the property, or that if such agents have been employed, that the party employing said agent shall pay any and all expenses outside the closing of this agreement.

22.

EMINENT DOMAIN:  If the property is condemned by eminent domain after the effective date hereof, the Seller and Buyer shall agree to continue the closing, or a portion thereof, or cancel this Contract. If the parties cannot agree, this contract shall ý remain valid with Buyer being entitled to any condemnation proceeds at or after closing, or  ̈ be cancelled and the earnest money returned to Buyer.

23.

OTHER PROVISIONS

___________________________________________________________________________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

24.

TIME IS OF THE ESSENCE IN THE PERFORMANCE OF THIS AGREEMENT.

25.

GOVERNING LAW:  This contract shall be governed by the laws of the State of North Carolina.

26.

DEADLINE LIST  (Optional) (complete all that apply). Based on other provisions of Contract.

		
	Deadline

	Date

	Loan Application Deadline, if contingent on loan

	 

	Loan Commitment Deadline

	 

	Buyer(s) Credit Information to Seller

	 

	Disapproval of Buyers Credit Deadline 

	 

	Survey Deadline

	 

	Title Objection Deadline

	 

	Survey Deadline

	 

	Appraisal Deadline

	 

	Property Inspection Deadline

	 

	

	 

	

	 

	

	 

Whether or not listed above, deadlines contained in this Contract may be extended informally by a writing signed by the person granting the extension except for the closing date which must be extended by a writing signed by both Seller and Buyer.

EXECUTED the 23 day of January                    , 2009 (THE EFFECTIVE DATE).

			
	                                                          

	          

	Medical Connections, Inc by Anthony Nicolosi, President

	Buyer

	 
	Seller

	 
	 
	 

	 
	 
	 

	Buyer

	 
	Seller

			
	Buyer Initials _____   ______

	- 7 -

	Seller Initials ______   ______

THIS PAGE IS NOT PART OF THE CONTRACT. IT IS PROVIDED BY USLF TO AID THE SELLER IN COMPLYING WITH FEDERAL LEAD-BASED PAINT DISCLOSURE LAW, FOR HOUSES BUILT PRIOR TO 1978.

* * *

IMPORTANT!!!

NOTES CONCERNING LEAD-PAINT DISCLOSURE REQUIREMENTS

Introduction: If the dwelling was constructed PRIOR TO 1978, federal law REQUIRES a Lead-Based Paint Disclosure Form to be attached to the sale contract, completed and signed by the seller and purchaser. If the dwelling was constructed in 1978 or later, this form is not required. If in doubt about the timing of construction, use the disclosure form. Whenever the form is used, the seller must also give the purchaser the EPA lead-based paint pamphlet discussed below. Sellers must retain a copy of the signed disclosure form for no less than three years from the date the sale closes.

Background: To protect families from exposure to lead from paint, dust, and soil, Congress passed the Residential Lead-Based Paint Hazard Reduction Act of 1992. HUD and EPA require the disclosure of known information on lead-based paint and related hazards before the sale of most housing built before 1978.

Requirements: Before the sale contract becomes enforceable, sellers must fully comply with lead-paint disclosure law. Compliance is accomplished by:

(1) Fully completing and delivering to the buyers, as an attachment to the contract, the LEAD-BASED PAINT DISCLOSURE form (the buyers also initial and sign this form), and

(2) Giving the buyers the EPA pamphlet entitled "Protect Your Family From Lead In Your Home." (See the download link for the pamphlet, below.)

Purchase the Disclosure Form: If you need to purchase a Lead-Based Paint Disclosure Form, you can easily do so using USLF. http://www.uslegalforms.com/lead-paint-disclosure-forms.htm Click this link (or copy it into the address window of you internet browser) and select your state. Two forms will be accessed. You want the “LEAD1” form, for sales transactions (not the “LEAD2” form for rentals). Click the “Information and Preview” link for more info on the form, and then order the form.

The Free EPA Pamphlet: The seller must give the buyer the EPA-approved information pamphlet on identifying and controlling lead-based paint hazards entitled "Protect Your Family From Lead In Your Home." You may obtain and print this pamphlet free by clicking the following download link (or copying the link into the address window of your internet browser):

http://www.epa.gov/lead/pubs/leadpdfe.pdf

The form is in .pdf format and you will need the free Adobe Acrobat Reader to view the form.  In the unlikely circumstance that the Adobe Acrobat Reader is not installed on your computer, you can download it free from http://www.adobe.com/products/acrobat/readstep2.html. The download is quick and easy.

* * *

Amendment to Purchase Agreement

This Amendment is executed along with and deemed to be a part of the Contract for Sale and Purchase (“Agreement”) by and between Medical Connections, Inc. (the “Seller”) and  Louis Sitaras, a married man (the “Buyer”) relating to the sale of real property known as 226 Greyrock Drive, Statesville, NC 28677 together with all personal property, furniture, fixtures and equipment  (hereinafter collectively the “Property”). In the event of any inconsistency between the Agreement and this Amendment, the terms of this Amendment shall control.

(1)

Deposit.  Buyer shall pay the Seller the sum of One Hundred and Twenty Five Thousand Dollars ($125,000) toward the purchase on or about February 11, 2009.  

(2)

Closing.  The Seller shall convey title to the Property to the Buyer on or before March 1, 2009 free and clear of all liens, with all closing expenses to be paid by the Seller and an Owner’s Title Insurance policy insuring the Buyer’s interest.  At Closing, Buyer will execute a promissory note in the amount equal to the balance of the purchase price, estimated to be $275,000 and payable on or before April 20, 2009.  There shall be no interest due on this short term note. The payment shall be due to Medical Connections Holdings, Inc. at 2300 Glades Road, Suite 202 E, Boca Raton, FL 33431.

(3)

Seller’s Option.  Notwithstanding the above, if the Seller fails to convey the Property as agreed on March 1, 2009 the Seller shall deliver 400,000 shares of stock in Medical Connections Holdings, Inc. to Buyer.

(4)

No Closing  In addition, if the Seller fails to convey the Property  on March 1, 2009 as agreed, the deposit of $125,000 shall be immediately returned to Buyer.

(5)

Notices. All notices to Buyer shall also be sent to Buyer’s attorney as follows: Irene Fonzi, Esq. Fonzi & Associates, P.L. 

   1402 Highway A1A, Suite A     Satellite Beach, FL 32937

   Telephone 321-777-1191 Fax 321-777-2227 

			
	Medical Connections Holdings, Inc.

	          

	Louis Sitaras

	 
	 
	 

	 
	 
	 

	Seller: ____________________

	 
	Buyer:_______________________

	Anthony Nicolosi

	 
	 

	Title:________________

	 
	 

	Telephone: ____________

	 
	Telephone: ___________________

	 
	 
	 

	Dated: ____________________

	 
	Dated: _______________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]