Document:

Unassociated Document

SECOND AMENDMENT TO OFFICE LEASE AGREEMENT

 

This Second Amendment to Office Lease Agreement (this "Amendment") is executed as of
October _______ , 2008, between SINACOLA COMMERCIAL PROPERTIES, LTD., a Texas limited partnership ("Landlord"), and OXYSURE SYSTEMS, INC., a Delaware corporation ("Tenant"). Capitalized
terms used herein but not defined shall be given the meaning assigned to them in the Lease, as defined below.

 

RECITALS:

 

A.   WHEREAS, Landlord and Tenant have entered into that certain Office Lease Agreement dated March 6, 2007 for the lease of property located in Frisco County, Texas, and more
particularly described therein, as further amended by that certain First Amendment to Office Lease Agreement dated August 23, 2007 (as amended, the "Lease"); and further

 

B.   WHEREAS, subject to the terms and conditions contained herein, Tenant and Landlord wish to amend the Lease in order to reflect the agreement of Tenant and Landlord with respect
to certain matters contained therein.

 

AGREEMENTS:

 

For valuable consideration, whose receipt and sufficiency are acknowledged, Landlord and Tenant agree as follows:

 

1. Base Rent Deferral. Tenant's monthly installments of Base Rent shall be deferred for the months of October, November and December of 2008 ("Deferral
Period") (provided, that notwithstanding such deferral of Base Rent, all other sums due under the Lease shall be payable as provided for in the Lease). Tenant must pay all such deferred Base Rent ("Deferred Base Rent") during the months of January, February,
March, April, May and June of 2009 ("Reconciliation Period"). The deferral of Base Rent is conditioned upon the full performance by Tenant of all other obligations under the Lease. The parties hereby agree that it will not be an Event of Default under the Lease for Tenant to defer payment of Base Rent during the Deferral
Period, provided that Tenant pays all Deferred Base Rent during the Reconciliation Period in accordance with the payment schedule set forth herein. If Tenant fails to pay the Deferred Base Rent during the Reconciliation Period, then failure to pay the Deferred Base Rent during the Deferral Period shall be an Event of Default and Landlord may exercise any and all rights and remedies available to it under the Lease and at law and equity. Nothing contained in this Amendment shall in any way alter or affect Tenant's
obligation to pay Base Rent, Additional Rent or any other sum or amount due under the Lease except as expressly set forth herein. The definition of Base Rent in Section 1.1 of the Lease is hereby amended as follows:

 

	
Lease Year
	 	
Base Rent per Square Foot of Rentable Area (per year)
	 	 	
Annual Base Rent
	 	 	
Monthly Base Rent
	 
	
1
	 	 	S8.50	 	 	$	137,700.00	 	 	$	11,475.00	 
	  	 	$	10.75	*	 	$	174,150.00	 	 	$	14,512.50	 

 

 

1

 

 

	
3
	 	$	12.00	 	 	
SI 94,400.00
	 	 	$	16,200.00	 
	
4
	 	$	12.25	 	 	$	198,450.00	 	 	$	16,537.50	 
	
5
	 	$	12.50	 	 	$	202,500.00	 	 	$	16,875.00	 

* Notwithstanding the foregoing, Base Rent shall be deferred during the months of October,November and December of 2008 and Base Rent shall equal $21,540.12 for
the months of January, February, March, April, May and June of 2009.

 

2. Right to Terminate. Section 13.21(c) of the Lease is hereby deleted in its entirety and replaced
with the following: "The effective date of the termination shall be the last day of the 48lh Lease Month (the "Termination Date")" If Tenant exercises its option to terminate the Lease pursuant to Section 13.21, Base Rent during Lease Year
4 shall increase from $12.25 to $14.00 per square foot of rentable area per year.

 

3. Broker Fees. AH fees that become due and owing to Broker under the Lease
or any other separate written agreement in connection with the negotiation or execution of this Amendment are deferred until January 2011. Broker has executed this Amendment solely in acknowledgment of this Paragraph 3. The Amendment shall be effective for all purposes upon execution by both Tenant and Landlord.

 

4. 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 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 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 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.

 

5. Binding Effect: Governing Law. Except as modified hereby, the Lease shall
remain in full effect and this Amendment shall be binding upon Landlord and Tenant and their respective successors and assigns. If any inconsistency exists or arises between the terms of the Lease and the terms of this Amendment, the terms of this Amendment shall prevail. This Amendment shall be governed by the laws of the State of Texas.

 

6. Counterparts. This Amendment may be executed in multiple counterparts,
each of which shall constitute an original, but all of which shall constitute one document.

 

[THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK.]

 

[SIGNATURES FOLLOW ON NEXT PAGE.]

 

2

 

 

Executed as of the date first written above.

	 	
LANDLORD:

SINACOLA COMMERCIAL PROPERTIES, LTD.,

a Texas limited partnership
	 
	 	 	
 

	 
	 	 	
 

 
	 
	 	TENANT:
OXYSURE SYSTEMS, INC.,

a Delaware corporation
	 
	 	 	
 

	 

ACKNOWLEDGED BY: 

 

BROKER:

 

STUNLY, Inc., a NEW YORK corporation 

 

 

 

Dallas l\5300938/2 

45373-7 11/24/2008

 

 

 

 

3Unassociated Document

CONVERTIBLE PROMISSORY NOTE

 

 

$750,000                                                                                                           April
15,2008

 

OxySure Systems, Inc., a company organized under the laws of the state of Delaware ("Obligor", which term, as used herein, shall include any successor thereto), for value received, hereby executes and delivers this Convertible Promissory Note ("Note") in favor of Agave Resources, LLC. ("Holder"),
a Texas limited liability company, and hereby promises to pay to Holder, its designees or its successors and permitted assigns, the principal sum of Seven Hundred Fifty Thousand Dollars ($750,000.00) (the "Principal Amount") on the Maturity Date (as defined below).

 

1. Maturity Date. The then outstanding Principal Amount shall become due and payable upon the completion of the next financing round completed by the Obligor or on the first
anniversary of the Issue Date (the "Maturity Date"), whichever happens first. "Issue Date" means the date of first issuance of this Note as first set forth above. Issue Date shall mean the later of the date set forth above or the date of signature hereof.

 

2. Acceleration. Notwithstanding any provision hereof to the contrary, the obligations of Obligor hereunder shall forthwith mature and immediately accelerate and shall be
immediately due and payable on the Default Date (as hereinafter defined) in the event that (i) the business of Obligor is discontinued, sold, liquidated or otherwise disposed of, whether by liquidation or dissolution, or (ii) Obligor shall take, or intends to take, or, as far as Obligor is aware, any other person shall receive a judgment, order or decree from a court of competent jurisdiction, in each case, for the Obligor's winding up, liquidation, dissolution, merger or consolidation that is not pursuant to
an agreement between Obligor and Holder, or for the appointment of a receiver in relation to any or all of Obligor's assets, or Obligor shall admit in writing its inability to pay its debts as they become due or shall commit any other act of insolvency (each a "Default Event"). The date on which any Default Event occurs is referred to herein as the "Default Date."

 

3. Prepayments. Obligor may prepay any of the Principal Amount or any interest accrued on this Note at any time prior to the Maturity Date.

 

4. Method of Payment. Obligor shall pay all amounts payable under this Note in cash by wire transfer of immediately available funds to an account designated by Holder or,
if no account has been designated, by certified check delivered to Holder at such place as Holder shall designate to Obligor in writing.

 

5. Presentment Waived. Obligor hereby expressly waives presentment for payment, demand, notice of dishonor, protest and notice of protest. Acceptance by Holder of any payment
that is less than the full amount then due and owing hereunder shall not constitute a waiver of Holder's right to receive payment in full at such time or at any prior or subsequent time.

 

6. Subordination. Prior to the Maturity Date, except for the obligations of Obligor upon any conversion of the Principal Amount in accordance with the terms of this Note,
all indebtedness evidenced by this Note (the "Subordinated Indebtedness") shall be subordinated to all other indebtedness of Obligor, whether existing as of the Issue Date or incurred at any time after the Issue Date (the "Senior Indebtedness"), and in that connection, prior to the Maturity Date, except for the obligations of Obligor upon any conversion of the Principal Amount in accordance with the terms of this Note:

 

 

1

 

 

(a) the payment of the Subordinated Indebtedness shall be subordinated to all and any rights, claims and actions which any other person may now or hereafter have against Obligor in respect of the Senior Indebtedness;

 

(b) the Subordinated Indebtedness shall not become capable of being subject to any right of set­off or counterclaim; and

 

(c) except upon the Maturity Date, upon the acceleration pursuant to Section 2, or upon the conversion of the Principal Amount in accordance with the terms of this Note, Holder shall not claim, request, demand, sue for, take or receive
(whether by way of set-off or in any other manner and whether from Obligor or any other person) any money or other property in respect of the Subordinated Indebtedness or any part thereof.

 

7.  Conversion Rights. At any time prior to the Maturity Date, subject to the written consent of Obligor, all but not less than all of the then outstanding Principal Amount of this
Note may be converted (an "Optional Conversion") into a number of shares of Obligor's common stock (the "Optional Conversion Shares") equal to the amount of the then outstanding Principal Amount to be converted divided by the Conversion Price (herein so called)
which shall be one and one half dollars per Optional Conversion Share.

 

In order to exercise the right of Optional Conversion, Holder shall surrender this Note at the principal office of Obligor and shall give written notice of such exercise, substantially in the form of Exhibit A attached hereto (the "Optional Conversion Notice"), to Obligor at such office. Such Optional Conversion shall be deemed to have
been effected at the close of business on the date on which such Optional Conversion Notice, duly completed and executed, shall have been given as aforesaid, and, subject to the last sentence of this Section 7, at such time such portion of the Principal Amount as is subject to such Optional Conversion shall be applied by Obligor in mil payment of the Optional Conversion Shares to be issued in consequence of the Conversion and that application shall discharge Obligor from all liability in respect of such portion
of the Principal Amount converted, and Holder shall be deemed for all purposes to have become the holder of the Optional Conversion Shares.

 

As promptly as practicable, but in no event later than twenty (20) Business Days, after an Optional Conversion, Obligor, at its expense, shall cause Holder's name to be entered in the register of the shareholders of Obligor in respect of the Optional Conversion Shares and shall issue Holder certificates evidencing same. "Business Day"
means any day other than a Saturday, Sunday or other day on which banks in the City of Dallas, State of Texas, United States of America are required or authorized to be closed. Notwithstanding any provision of this Note to the contrary, no Optional Conversion shall be deemed to have occurred unless and until Obligor shall have complied with the obligations set forth in the immediately preceding sentence, whereupon such Optional Conversion shall be deemed to have been effective as of the date the Optional Conversion
Notice is given to Obligor; provided, however, that no failure by Obligor to so comply with such obligations shall prohibit Holder from exercising his rights as the holder of the Optional Conversion Shares.

 

8. Treatment of Note. Obligor will treat, account and report this Note as debt and not equity for accounting and tax (with respect to any returns filed with federal, state, local or foreign tax
authorities) purposes.

 

2

 

 

9.       Miscellaneous.

 

(a) Specific Performance. Obligor and Holder acknowledge and agree that in the event of any breach of this Note, the non-breaching party would be irreparably harmed and
could not be made whole solely by monetary damages. Obligor and Holder hereby agree that in addition to any other remedy to which any party may be entitled at law or in equity, to the extent permitted by applicable law, Obligor and Holder shall be entitled to obtain an injunction or compel specific performance of this Note in any action instituted in any Court.

 

(b) Interpretation. The headings and captions in this Note are for convenience of reference only and shall not control or affect the meaning or construction of any provisions
hereof.

 

(c) Notices. All notices and other communications required or permitted to

be given hereunder shall be in writing and shall be (i) delivered by hand, (ii) delivered by a reputable commercial overnight delivery service, or (iii) transmitted by facsimile, in each case, sent to the address or telecopier number set below. Such notices shall be effective: (i) in the case of hand deliveries, when received; (ii) in the
case of an overnight delivery service, when received; and (iii) in the case of facsimile transmission, when electronic confirmation of receipt is received by the sender. Any party may change its address and telecopy number by written notice to another party in accordance with this provision, provided that such notice shall be effective only upon receipt.

 

If to Obligor, to:

 

OxySure Systems, Inc.

10880 John W. Elliott Dr., Suite 600

Frisco, TX 75034

Telecopy: 972-294-6501

Attention: Chief Executive Officer

 

If to Holder, to:

 

Agave Resources, LLC. 

Att: Mr. Don Reed 

2201 E. Hickory Hill Road 

Argyle, TX 76226

 

(d) Governing Law; Forum; Service of Process. This Note shall be governed by and construed in accordance with the laws of the State of Texas as to all matters, including
validity, construction, effect, performance and remedies of and under this Note. Venue in any and all suits, actions and proceedings between the parties hereto and relating to the subject matter of this Note shall be in the courts located in and for Dallas County, Texas (the "Courts"), which shall have exclusive jurisdiction for such purpose, and Holder and Obligor hereby irrevocably submit to the exclusive jurisdiction of such Courts and irrevocably waive the defense of an inconvenient forum to the maintenance
of any such suit, action or proceeding. Service of process may be made in any manner recognized by such Courts. Holder and Obligor each hereby irrevocably waives its right to a jury trial arising out of any dispute in connection with this Note or the transactions contemplated hereby.

 

(e) Severability. The invalidity, illegality or unenforceability of one or more of the clauses or provisions of this Note in any jurisdiction shall not affect the validity,
legality or enforceability of this Note in such jurisdiction or the validity, legality or enforceability of this Note, including any such clause or provision in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

 

3

 

 

 

(f) Successors; Assigns; Third-Party Beneficiaries. The provisions of this

Note shall be binding upon the parties hereto and their respective heirs, successors and permitted assigns. Neither this Note nor the rights or obligations of Obligor may be assigned by Obligor without the prior written consent of Holder. Holder may freely assign his rights or obligations hereunder. Any attempted assignment in contravention
of this Note shall be null and void and of no effect. This Note is for the sole benefit of the parties hereto and their respective heirs, successors and permitted assigns and no provision hereof, whether express or implied, is intended, or shall be construed, to give any other Person any rights or remedies, whether legal or equitable, hereunder.

 

(g) Amendments. This Note may not be amended, modified or supplemented except in a writing signed by Obligor and Holder.

 

(h) Waiver. Any waiver (whether express or implied) of any default or breach of or by any party to this Note shall be effective unless evidenced by a writing signed by the party against which
such waiver is sought to be enforced. No such waiver for any purpose shall constitute a waiver of any other or subsequent default or breach, or for any other purpose.

 

IN WITNESS WHEREOF, Obligor has caused this Note to be duly executed and delivered as of the date first set forth above.

 

OBLIGOR:

 

OXYSURE SYSTEMS, INC.

 

 

  

4

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