Document:

amexdrug10k20101231ex10-12.htm

Exhibit 10.12

AIR COMMERCIAL REAL ESTATE ASSOCIATION

GUARANTY OF LEASE

WHEREAS, Condor Associates, LLC                       , hereinafter "Lessor", and Amexdrug Corporation               , hereinafter "Lessee", are about to execute a document entitled "Lease" dated February 22, 2011 concerning the premises commonly known as7251 Condor St., Commerce, California 90040                     wherein Lessor will lease the premises to Lessee, and

WHEREAS, Jack Amin and Nora Amin                      hereinafter "Guarantors" have a financial interest in Lessee, and

WHEREAS, Lessor would not execute the Lease if Guarantors did not execute and deliver to Lessor this Guaranty of Lease.

NOW THEREFORE, in consideration of the execution of said Lease by Lessor and as a material inducement to Lessor to execute said Lease, Guarantors hereby jointly, severally, unconditionally and irrevocably guarantee the prompt payment by Lessee of all rents and all other sums payable by Lessee under said Lease and the faithful and prompt performance by Lessee of each and every one of the terms, conditions and covenants of said Lease to be kept and performed by Lessee.

It is specifically agreed by Lessor and Guarantors that (i) the terms of the foregoing Lease may be modified by agreement between Lessor and Lessee, or by a course of conduct, and (ii) said Lease may be assigned by Lessor or any assignee of Lessor without consent or notice to Guarantors and that this Guaranty shall guarantee the performance of said Lease as so modified,

This Guaranty shall not be released, modified or affected by the failure or delay on the part of Lessor to enforce any of the rights or remedies of the Lessor under said Lease.

No notice of default by Lessee under the Lease need be given by Lessor to Guarantors, it being specifically agreed that the guarantee of the undersigned is a continuing guarantee under which Lessor may proceed immediately against Lessee and/or against Guarantors following any breach or default by Lessee or for the enforcement of any rights which Lesser may have as against Lessee under the terms of the Lease or at law or in equity.

Lessor shall have the right to proceed against Guarantors following any breach or default by Lessee under the Lease without first proceeding against Lessee and without previous notice to or demand upon either Lessee or Guarantors.

Guarantors hereby waive (a) notice of acceptance of this Guaranty. (b) demand of payment, presentation and protest, (c) all right to assert or plead any statute of limitations relating to this Guaranty or the Lease, (d) any right to require the Lessor to proceed against the Lessee or any other Guarantor or any other person or entity liable to Lessor, (e) any right to require Lessor to apply to any default any security deposit or other security it may hold under the Lease, (f) any right to require Lessor to proceed under any other remedy Lessor may have before proceeding against Guarantors, (g) any right of subrogation that Guarantors may have against Lessee,

Guarantors do hereby subordinate all existing or future indebtedness of Lessee to Guarantors to the obligations owed to Lessor under the Lease and this Guaranty.

If a Guarantor is married, such Guarantor expressly agrees that recourse may be had against his or her separate property for all of the obligations hereunder.

The obligations of Lessee under the Lease to execute and deliver estoppel statements and financial statements, as therein provided shall be deemed to also require the Guarantors to do and provide the same to Lessor. The failure of the Guarantors to provide the same to Lessor shall constitute a default under the Lease.

The term "Lessor" refers to and means the Lessor named in the Lease and also Lessor's successors and assigns. So long as Lessor's interest in the Lease, the leased premises or the rents, issues and profits therefrom, are subject to any mortgage or deed of trust or assignment for security, no acquisition by Guarantors of the Lessor's interest shall affect the continuing obligation of Guarantors under this Guaranty which shall nevertheless continue in full force and effect for the benefit of the mortgagee, beneficiary, trustee or assignee under such mortgage, deed of trust or assignment and their successors and assigns.

The term "Lessee" refers to and means the Lessee named in the Lease and also Lessee's successors and assigns.

Any recovery by Lessor from any other guarantor or insurer shall first be credited to the portion of Lessee's indebtedness to Lessor which exceeds the maximum liability of Guarantors under this Guaranty.

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© 1996 – AIR COMMERCIAL REAL ESTATE ASSOCIATION

	
FORM GR-2-09/06E

  

  

  

No provision of this Guaranty or right of the Lessor can be waived, nor can the Guarantors be released from their obligations except in writing signed by the Lessor.

Any litigation concerning this Guaranty shall be initiated in a state court of competent jurisdiction in the county in which the leased premises are located and the Guarantors consent to the jurisdiction of such court, This Guaranty shall be governed by the laws of the State in which the leased premises are located and for the purposes of any rules regarding conflicts of law the parties shall be treated as if they were all residents or domiciles of such State.

In the event any action be brought by said Lessor against Guarantors hereunder to enforce the obligation of Guarantors hereunder, the unsuccessful party in such action shall pay to the prevailing party therein reasonable attorney's fee. The attorney's fee award shall not be computed in accordance with any court fee schedule, but shall be such as to full reimburse all attorney's fees reasonably incurred.

If any Guarantor is a corporation, partnership, or limited liability company, each individual executing this Guaranty on said entity's behalf represents and warrants that he or she is duly authorized to execute this Guaranty on behalf of such entity.  If this Form has been filled in, it has been prepared for submission to your attorney for his approval. No representation or recommendation is made by the AIR Commercial Real Estate Association, the real estate broker or its agents or employees as to the legal sufficiency, legal effect, or tax consequences of this Form or the transaction relating thereto.

 

	
Executed at Los Angeles, California

	
Jack Amin                  /s/ Jack Amin

	
On: February __, 2011

	__________________________________________  
	
Address:  9606 Royalton Drive

	
Nora Amin                 /s/ Nora Amin

	
Beverly Hills, California 90320

	
“GUARANTORS”

 

 

 

 

 

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© 1996 – AIR COMMERCIAL REAL ESTATE ASSOCIATION

	
FORM GR-2-09/06Efofu8k20110330ex10-1.htm

AGREEMENT TERMINATING

ASSET PURCHASE AGREEMENT

Agreement made and entered into by and between Force Fuels, Inc. and Pemco, LLC.

RECITALS:

WHEREAS, Force Fuels, Inc. and Pemco, LLC entered into that certain ASSET PURCHASE AGREEMENT dated April 23, 2010 (hereafter the “Agreement”);

AND WHEREAS the Agreement has been partially preformed; Force Fuels, Inc. paid to Pemco, LLC the sum of $100,000.00, and has also paid $45,000.00 on the balance due to Pemco, LLC of $900,000.00, the balance due being secured through a collateralized non-interest bearing Promissory Note payable in equal monthly installments of $100,000.00 beginning May 23, 2010; Pemco, LLC has assigned four (4) oil and gas leases described in Exhibit “A” attached hereto (hereafter collectively referred to as the “leases”) to Force Fuels, Inc.; Pemco, LLC  has also advanced funds on behalf of Force Fuels, Inc. arising from and relating to the operation of the leases; Pemco, LLC has also provided services to Force Fuels, Inc. in connection with the operation of the leases;

AND WHEREAS, the Agreement also provided at Section 2.2.5 that Force Fuels, Inc. would enter into a separate Agreement with Energy Recovery Systems (“ERS”) to pay it the sum of $500,000.00, but the separate Agreement between Force Fuels, Inc. and ERS has not been finalized and is deemed null and void;

AND WHEREAS Force Fuels, Inc. and Pemco, LLC desire to terminate the Agreement, and to make alternate provisions with respect to the operation and development of the leases;

  

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NOW THEREFORE, in consideration of the mutual agreements, covenants, releases and other provisions hereafter set forth, the sufficiency of which is by each party hereby acknowledged, it is agreed as follows:

1.          Termination of Prior Agreement.  The parties hereby mutually agree  that the Agreement dated April 23, 2010 is hereby terminated and shall be of no further force and effect, subject only to the provisions hereafter set forth.

2.           Assignment of Interest in Existing Leases.  Force Fuels, Inc. hereby agrees to assign to Pemco, LLC one-half (1⁄2) of the entire working interest which Force Fuels, Inc. currently owns in the leases, being a 50% working or operating interest, and a net revenue interest of .40625.

3.           Release of Debt.  Pemco, LLC does hereby release any and all  Remaining debt owed to it by Force Fuels, Inc. in exchange for the 50% working interest in the leases above set forth.

4.           Joint Operating Agreement.  The parties hereto agree that the leases shall be operated pursuant to the terms of a mutually acceptable operating agreement between Force Fuels, Inc. and Pemco, LLC, collectively the owners, and Pemco, LLC, or its designee, as the operator.

For a period of thirty (30) days after execution of this agreement, each party agrees:

	
  

	
A.

	
That it will not assign, mortgage, encumber or otherwise transfer, directly or indirectly, its interest in the leases to any other party;

	
  

	
B.

	
That it will not initiate any action in partition or other judicial proceeding to compel sale or purchase of the other parties’ interest.

  

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In the event the parties are unable to negotiate a mutually satisfactory operating agreement within a reasonable time, not exceeding thirty (30) days from the date hereof, the provisions of this Agreement shall expire and be of no further force and effect.

5.           Effective Time.  The assignment of the leases to Pemco, LLC shall be effective as 12:01 a.m. on March 31, 2011.  At or as soon as practical after the effective time, the parties shall determine the amount of oil in storage tanks (above the pipeline connections), and the volumes of gas produced by Force Fuels, Inc. prior to the effective time.  Force Fuels, Inc. shall be entitled to receive the proceeds of sale of oil and gas produced prior to the effective time; the proceeds of sale of oil or gas produced after the effective time shall be divided between the parties hereto based upon their respective ownership interests; and proration of proceeds shall be established on this basis.

6.           Taxes and Liabilities.  All taxes, including ad valorem personal property  Tax shall be prorated between Force Fuels, Inc. and Pemco, LLC as of the effective  time.

7.           Liabilities and Operating Expenses.  Force Fuels, Inc. shall pay, perform, fulfill and discharge all claims, costs, expenses, liabilities and obligations relating to its ownership and operation of the leases prior to the effective time.

8.           Agreement with ERS.  Pemco, LLC will hold Force Fuels, Inc. harmless and indemnify Force Fuels, Inc. from and against any liabilities of ERS.

9.           Mutual Release.  Except as specifically set forth above, Force Fuels, Inc.  and Pemco, LLC do hereby mutually release the other from all remaining terms and provisions of the Agreement previously entered into.

  

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In witness whereof, the parties have executed this agreement the day and year set forth opposite their respective signatures below.

	  	
Pemco, LLC

	  
	  	  	  
	
Dated:                       , 2011

	
By:       /s/                               

	  
	  	
Rick Coody, Member

	  
	  	  	  
	  	
Force Fuels, Inc.

	  
	  	  	  
	
Dated:                       , 2011

	
By:       /s/                            

	
 

	  	
Thomas Hemingway, CEO and President

	  
	  	  	  

  

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EXHIBIT “A”

	
LESSOR:

	
Dennis L. Bayless and Debora C. Bayless, husband and wife

	
LESSEE:

	
Pemco, LLC

	
DATE:

	
April 26, 2010

	
DESCRIPTION:

	
SW/4 SE/4 of Sec. 35, T33S, R13; N/2 NE/4 a/k/a Lots 1 & 2; SE/4 NE/4 of Sec. 2, T34S, R13E, all in Montgomery County, Kansas

	
RECORDED:

	
Book 590, Page 97

	  	  
	
LESSOR:

	
Dennis L. Bayless and Debora C. Bayless, husband and wife

	
LESSEE:

	
Pemco, LLC

	
DATE:

	
April 26, 2010

	
DESCRIPTION:

	
NW/4 NW/4 a/k/a Lot 4, Sec. 1, T34S, R13E, Montgomery County, Kansas

	
RECORDED:

	
Book 590, Page 98

	  	  
	
LESSOR:

	
Dennis L. Bayless and Debora C. Bayless, husband and wife

	
LESSEE:

	
Pemco, LLC

	
DATE:

	
April 26, 2010

	
DESCRIPTION:

	
S/2 SW/4 of Sec. 35, T33S, R13E, Montgomery County, Kansas

	
RECORDED:

	
Book 590, Page 99

	  	  
	
LESSOR:

	
Dennis L. Bayless and Debora C. Bayless, husband and wife

	
LESSEE:

	
Pemco, LLC

	
DATE:

	
April 26, 2010

	
DESCRIPTION:

	
NW/4 of Sec. 2, T34S, R13E, Montgomery County, Kansas

	
RECORDED:

	
Book 590, Page 100

	  	  

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