Document:

Unassociated Document

Exhibit 10.3.6

 

December 31, 2013

 

Julian T. Ross

Chairman & CEO

OxySure Systems, Inc.

10880 John W. Elliott Road

Suite 600

Frisco, TX 75033

	
Re:

	
Letter Agreement (this "Agreement") between SINACOLA COMMERCIAL PROPERTIES, LTD., a Texas limited partnership ("Landlord"), and OXYSURE SYSTEMS, INC., a Delaware corporation ("Tenant")

Dear Julian:

Landlord and Tenant have agreed to exchange certain consideration for certain amounts of unpaid Rent owed by Tenant to Landlord for the calendar years 2012 and 2013 under that certain Office Lease Agreement dated March 6, 2007 for the lease of property located in Frisco, Collin County, Texas (as amended, the "Lease") and for certain amounts of unpaid indebtedness owed by Tenant to Landlord under the Matured Notes (as defined herein).   For the purpose of this Agreement, the capitalized terms used herein but not defined shall be given the meaning assigned to them in the Lease.

 

Now, for valuable consideration to Landlord by Tenant, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree to the following terms and conditions:

 

	
Rent Satisfaction

	
The parties agree that all of Tenant’s outstanding lease payment obligations under the Lease up to and including December 31, 2013, including, but not limited to, Base Rent, will be deemed satisfied in full, subject to the terms and conditions set forth in this Agreement (including, without limitation, the provisions under the heading “Default” below). Tenant shall have no further lease payment obligations to Landlord under the Lease until after December 31, 2013 unless Tenant is in Default, hereinafter defined.

 

	
Note Satisfaction

 

	
The parties agree that all of Tenant’s outstanding payment obligations under the Matured Notes will be deemed satisfied in full, subject to the terms and conditions set forth in this Agreement (including, without limitation, the provisions under the heading “Default” below).   As used herein, “Matured Notes” mean (i) that certain Third Landlord Note in the principal amount of $110,000 and with a maturity date of October 31, 2012, (ii) that certain Fourth Landlord Note in the principal amount of $110,715 and with a maturity date of October 31, 2012, (iii) that certain Fifth Landlord Note in the principal amount of $50,000 and with a maturity date of June 30, 2013, (iv) that certain Sixth Landlord Note in the principal amount of $50,000 and with a maturity date of June 30, 2013, (v) that certain Seventh Landlord Note in the principal amount of $50,050 and with a maturity date of November 30, 2013, and (vi) that certain Eighth Landlord Note in the principal amount of $50,050 and with a maturity date of November 30, 2013.

 

SINACOLA COMMERCIAL PROPERTIES, LTD

10950 RESEARCH ROAD

FRISCO, TX 75033

(214) 387-3900

 

  

  

  

 

January ___, 2014

Page 2 of 5

 

	 
Cash Payments

	 
Upon execution of this Agreement by Landlord and Tenant, Tenant shall pay to Landlord two cash payments.  The first cash payment shall be in the amount of twenty-five thousand dollars ($25,000.00).  The second cash payment shall be in the amount of four thousand eight-hundred ninety-two dollars and forty-seven cents ($4,892.47).  The second cash payment represents the amount owed by Tenant for the estimated January 2014 operating expenses due under the Lease. The first and second cash payments are collectively (the “Payments”).

 

	
Stock Issuances

	
Upon execution of this Agreement by Landlord and Tenant,  Tenant shall issue to Landlord an aggregate of 1,289,986 shares of Tenant’s common stock, par value $0.0004 per share (the “Tenant Stock”), as follows:

 

1.     644,347 shares of Tenant Stock for  unpaid Base Rent and expenses owed to Landlord during the 2012 and 2013 Lease years;

 

2.     220,013 shares of Tenant Stock as consideration for Landlord’s agreement to  extend the term of the Lease, as set forth under the heading “Lease Extension” below;

 

3.     403,807 shares of Tenant Stock as Tenant’s payment in full of the Matured Notes and waive the further exercise of its rights in connection with Tenant’s existing defaults thereunder; and

 

4.     21,819 shares of Tenant Stock as the remaining shares due and outstanding from that certain Conversion Agreement dated December 30, 2011 between Landlord and Tenant.

 

All of the foregoing shares of Tenant Stock are issued in reliance on Section 4(2) of the Securities Act of 1933, as amended, and are exempt from registration under the Securities Act of 1933.Landlord represent that it is an accredited investor, as that term is defined in Regulation D, and that it is acquiring the securities for investment purposes only and not with a view to or for sale in connection with any distribution thereof.

 

  

  

  

 

January ___, 2014

Page 3 of 5

 

	
Lease Extension:

	
Landlord and Tenant acknowledge and agree that Tenant shall, concurrently with their execution of this Agreement,  enter into a formal amendment to the Lease, in the form of the Third Amendment to Office Lease Agreement attached hereto as Exhibit A (the “Lease Amendment”), whereby the term of the Lease shall be extended to December 31, 2017.

 

	
Ratification

	
Landlord and Tenant hereby ratify and confirm their obligations under the Lease.  Additionally, both the Landlord and the Tenant confirm and ratify that, as of the date hereof, the Lease, as amended by the Lease Amendment, is and remains in good standing and in full force and effect. Further, Landlord ratifies and confirms that (a) to Landlord's actual knowledge, there is no existing default by Landlord or Tenant under the Lease, and (b) Landlord knows of no event which, with notice or the passage of time or both, would constitute a default under the Lease. Further, Tenant ratifies and confirms that (a) to the Tenant's actual knowledge, there is no existing default by Tenant or Landlord under the Lease, and (b) Tenant knows of no event which, with notice or the passage of time or both, would constitute a default under the Lease.

 

	
Default

	
If Tenant shall default on any of the obligations contained in this Agreement (including, without limitation, the obligations described under the headings “Cash Payments,” “Stock Issuances,” and “Lease Extension” above) and such default remains uncured after fourteen (14) days of written notice to Tenant (a “Default”), then this Agreement may be terminated immediately by Landlord and (i) such termination shall render this Agreement null and void, (ii) all past-due Base Rent and expenses otherwise satisfied pursuant to this Agreement shall be immediately due and payable and subject to all terms under the Lease, and (ii) all past-due amounts under the Matured Notes shall be immediately due and payable and subject to all terms under the Delinquent Notes.

 

	
Assignment

	
This Agreement, and the rights and obligations hereunder, may be assigned by Landlord at any time to any affiliated entity without the consent of Tenant.

	
Binding Effect; Governing Law

	
As of the date of this Agreement, the Lease, as amended by the Lease Amendment, shall remain in full effect and this Agreement shall be binding upon Landlord and Tenant and their respective successors and assigns.  This Agreement shall be interpreted under the laws of the State of Texas, excluding its choice of law provisions, and any disputes arising under this Agreement shall be heard only in the courts located in Collin County, Texas.

 

  

  

  

 

January ___, 2014

Page 4 of 5

 

	
Entire Agreement

	
This Agreement constitutes the entire agreement of Landlord and Tenant with respect to the subject matter hereof and supersedes all previous agreements and understandings, written or oral, between them with respect to the subject matter hereof.

 

	
Attorneys Fees

	
Landlord shall be entitled to recover all of its reasonable attorneys' fees, costs and expenses incurred as a result of any uncured breach of this Agreement by Tenant or incurred by Landlord in enforcing this Agreement.

[SIGNATURES TO FOLLOW ON NEXT PAGE]

 

  

  

  

 

January ___, 2014

Page 5 of 5

 

If you are in agreement with the foregoing, please sign and return one copy of this Agreement, which thereupon will constitute our binding agreement with respect to its subject matter.

 

	 	 
Sincerely,

SINACOLA COMMERCIAL PROPERTIES, LTD., 

a Texas limited partnership

	 
	 	 	 	 
	
 

	
By: 

	 
FRISCO INDUSTRIAL, INC.,

	 
	 	 	 
a Texas corporation, its general partner

	 
	 	 	 	 
	 	 	By:	 	 
	 	 	Name:	 
Michael A. Sinacola

	 
	 	 	Title:	 
President

	 

ACKNOWLEDGED AND AGREED,

EFFECTIVE AS OF December 31, 2013

OXYSURE SYSTEMS, INC.,

a Delaware corporation

	By:	 	 
	Name:	 
Julian T. Ross

	 
	Title:	 
Chairman & CEO

	 

  

  

  

 

EXHIBIT A

LEASE AMENDMENT

[See attached]

 

 

 

SINACOLA COMMERCIAL PROPERTIES, LTD

10950 RESEARCH ROAD

FRISCO, TX 75033

(214) 387-3900Unassociated Document

Exhibit 10.11.5

 

THIRD PAYMENT MORATORIUM

&

SETTLEMENT AGREEMENT

 

This THIRD PAYMENT MORATORIUM & SETTLEMENT AGREEMENT (the “Agreement”) is made as of July 29, 2013 by and between VENCORE SOLUTIONS LLC, a Delaware limited liability company (“Vencore”), and OXYSURE® SYSTEMS, INC., a Delaware corporation (“Oxysure”).

 

RECITALS

 

A.           Master Lease Agreement Number 6906 (the “MLA”) and Lease Schedule Numbers 01 through and including Number 11 (collectively the “Leases”) were executed between October 30, 2006 and August 20, 2007 by OxySure as Lessee and Vencore as Lessor.

B.           The First Payment Moratorium was granted on March 4, 2011 and expired on February 29, 2012 stated that Oxysure’s indebtedness to Vencore was $307,661.83 (“Debt Obligation”) and that no further interest or late charges would accrue during the Payment Moratorium Period.

C.           The Second Payment Moratorium which was granted June 26, 2012, and expired July 1, 2013, stated that Oxysure was obligated to make any payments during the Payment Moratorium Period and that no further late charges would accrue during the Payment Moratorium Period

D.           No cash settlement or repayment plan was agreed to under, or subsequent to, either the   First or Second Payment Moratoriums (collectively the “Moratoriums”).

E.           Oxysure is a public company trading under the symbol “OXYS”- OTCBB.

 

  

Page 1 of 4

  

NOW, THEREFORE, in consideration of the covenants and mutual agreements contained in this Agreement and for other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

ARTICLE I

THIRD PAYMNENT MORATORIUM

&

SETTLEMENT AGREEMENT

 

SECTION 1. Payment Moratorium.  Vencore shall grant a Third Payment Moratorium (the “Third Moratorium”) which will expire on December 31, 2013.   The Debt Obligation shall remain as $307,661.83 and no further interest or late charges shall accrue during the Third Moratorium.

SECTION 2.  Settlement Agreement.  Vencore shall consider the Debt Obligation settled in full providing, on or before December 31, 2013, Oxysure:

 

a)       Pays the sum of $150,000.00 to Vencore; and

b)       Provides Vencore, as holder, 75,000 common shares of non-restricted Oxysure stock.

 

ARTICLE II

CONDITIONS

 

SECTION 2.01.  Conditions Precedent to Vencore’s Obligations.  Each of the obligations of Vencore under this Agreement is subject to the fulfillment of each and every one of the following conditions precedent:

 

a)       Oxysure shall have executed and returned a pdf copy of this Agreement to Vencore;

b)       Each of the representations, warranties and acknowledgements of Oxysure set forth in this Agreement shall be true and correct.

ARTICLE III

REPRESENTATIONS

 

SECTION 3.01. Vencore’s Representations.  Vencore warrants and represents to Oxysure that:

a)       Vencore has the requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the transactions contemplated hereby;

b)       The Leases are an obligation owed to Vencore, and Vencore has not heretofore transferred, assigned or encumbered the Lease or any security interest in the leased equipment, or any interest therein, in whole or in part, to any other person or entity; and

c)       When executed and delivered by Vencore, this Agreement shall constitute a legal, valid and binding agreement of Vencore, enforceable against Vencore in accordance with its terms.  The person executing this Agreement on behalf of Vencore has full power and authority to bind Vencore to this Agreement.

SECTION 3.02.  Oxysure’s Representations.  Oxysure represents and warrants to Vencore that:

a)       Oxysure has the requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the transactions contemplated hereby; and

b)       When executed and delivered by Oxysure, this Agreement shall constitute a legal, valid and binding agreement of Oxysure, enforceable against Oxysure in accordance with its terms.  The person executing this Agreement on behalf of Oxysure has full power and authority to bind Oxysure to this Agreement.

 

  

Page 2 of 4

  

ARTICLE IV

MISCELLANEOUS

SECTION 4.01.  Governing Law.  This Agreement has been thoroughly reviewed and negotiated by the parties and their respective counsel (if so desired) and, therefore, the language of this Agreement shall not be construed strictly for or against any party hereto.  This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon, exclusive of principles of conflicts of laws.

SECTION 4.02.  Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute one and the same document.

SECTION 4.03.  Entire Agreement: Amendments.  Except as specifically set out in this Agreement, this Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement and supersedes all prior agreements, understandings, negotiations and discussions between the parties in connection with the subject matter of this Agreement (whether oral or written, express or implied, statutory or otherwise).  No amendment or modification of this Agreement shall be valid or binding unless made in writing and duly executed by each of the parties hereto.

SECTION 4.04.  Successors and Assigns.  This Agreement shall inure to the benefit of, and be binding on, the parties and their respective successors and permitted assigns.  Neither party may assign or transfer all or any part of its respective rights or obligations under this Agreement without the prior written consent of the other party.

SECTION 4.05.  Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument.  Counterparts may be executed either in original, faxed or “pdf” form; provided, however, that a party providing its signature in such manner shall promptly forward to the other party an original of the signed copy of this Agreement which was so faxed or sent by pdf.

SECTION 4.06.  Further Assurances.  Each party hereto from time to time hereafter, and upon request, shall execute, acknowledge and deliver such other instruments as reasonably may be required to more effectively carry out the terms and conditions of this Agreement.

SECTION 4.07.  Attachment to Leases.  Upon execution of this Agreement, this Agreement will attach to and become a part of the Leases.  Other than the Payment Moratorium detailed in Sections 1 and 2 of this Agreement the terms and conditions contained in Master Lease Agreement Number 5906 shall remain in force until the satisfaction of the Debt Obligation.

SECTION 4.08.  Time Is Of The Essence.  In the event an executed copy of this Agreement has not been received by Vencore on or before August 2, 2013 terms of this Agreement shall be null and void effective August 3, 2013.

//////////     SIGNATURE PAGE FOLLOWS     //////////

 

  

Page 3 of 4

  

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed and delivered by a duly authorized person on the date first set forth above.

 

	 	 
VENCORE SOLUTIONS LLC

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	
Name:     James Paul Johnson

	 
	 	
Title:       Servicing Agent

	 
	 	 	 	 

 

	 	
OXYSURE SYSTEMS, INC.

	 
	 	 	 	 
	 	
By: 

	 	 
	 	Name:	 	 
	 	Title: 	 	 

 

Page 4 of 4

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