Document:

oxysure_ex1034.htm

EXHIBIT 10.34

 

Memorandum of Understanding

(1) The parties to this MOU are OxySure Systems, Inc., including its affiliates and subsidiaries (collectively, “OxySure”) and CardiaTech Holland, BV, including its affiliates and subsidiaries (collectively, “CardiaTech”).

(2) CardiaTech wishes to be a distributor of OxySure products (“OxySure Products”). OxySure wishes to be a distributor of CardiaTech products (“CardiaTech Products”).

(3) The Parties wish to enter into an MOU to set out the rights and responsibilities of each party, which MOU shall be valid until end of May 2010. On or before the expiry of the MOU, the Parties shall enter into formal distribution agreements setting out the final terms and conditions of each distribution agreement respectively. In case of any necessary regulatory approvals in any country or countries covered by this MOU, the term of the MOU will extend to three months after the date of approval solely for these countries, upon mutual, written consent of the Parties.

(4) During the term of the MOU, the Parties agree to protect each other, and to not engage in any discussions, directly or indirectly, related to distribution of the CardiaTech Products and the OxySure Products in the markets identified in and covered by this MOU. In fact, the parties agree that any discussion that arises in any of the identified markets, the Parties will immediately notify the other Party, and provide contact information and all other details regarding the discussion.

(5) OxySure intends to grant CardiaTech exclusive distribution rights to market the OxySure Products in certain initial countries (the “CardiaTech Initial Exclusivity Countries”), subject to volume requirements and the pricing schedules developed exclusively for CardiaTech (the “CardiaTech Pricing”). The CardiaTech Pricing is Annexure A herewith.

(6) The CardiaTech Initial Exclusivity Countries are: Holland, Belgium Denmark, Finland, Norway, Russia, Ukraine, Azerbaijan, Kazakhstan, Iran, UAE, Syria, Iraq, and Uzbekistan.

(7) The annual aggregate volume requirement for CardiaTech to maintain exclusivity for the CardiaTech Initial Exclusivity Countries is 10,000 units of the OxySure Model 615 or Model 615D per annum per country, or a total of 140,000 units for the CardiaTech Initial Exclusivity Countries. This volume requirement applies during the first 2 years. Thereafter the Parties shall re-evaluate and adjust the volume requirement based on market conditions.

(8) CardiaTech intends to grant OxySure exclusive distribution rights to market the CardiaTech Products in certain initial countries (the “OxySure Initial Exclusivity Countries”), subject to volume requirements and the pricing schedules developed exclusively for OxySure (the “OxySure Pricing”). The OxySure Pricing is Annexure B herewith.

(9) The OxySure Initial Exclusivity Countries are: USA, Canada and South Africa.

(10) The annual aggregate volume requirement for OxySure to maintain exclusivity for the OxySure Initial Exclusivity Countries is 5,000 units for the USA, 3500 units for Canada and 1500 units for South Africa, of the CardiAid CT0207 AED per annum per country, or a total of 10,000 units for the CardiaTech Initial Exclusivity Countries. This volume requirement applies during the first 2 years. Thereafter the Parties shall re-evaluate and adjust the volume requirement based on market conditions.

 

  

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(11) CardiaTech shall obtain CE Marking and any other necessary regulatory approval for any market it intends to enter with the OxySure Products. The costs of such regulatory efforts shall be borne by CardiaTech. OxySure shall provide its best efforts to assist CardiaTech in such activities and provide any and all information related thereto.

(12) OxySure shall obtain US FDA Approval, Canadian FDA Approval and approval by the South African Medicines Council to market the CardiaTech Products in the USA, Canada and South Africa, respectively. The costs of such regulatory efforts shall be borne by OxySure. CardiaTech shall provide its best efforts to assist OxySure in such activities and provide any and all information related thereto.

(13) All IP related to automated defibrillation equipment, jointly developed by the Parties, shall inure to CardiaTech.

(14) All IP related to catalytic oxygen processes and equipment, jointly developed by the Parties, shall inure to OxySure.

(15) The rights and obligations set out in this Agreement shall be governed by and construed in accordance with the substantive Laws of Switzerland. Any dispute involving the meaning, interpretation, performance or any alleged violation of the provisions of the Agreement which cannot be settled by discussion and amicable accord shall be finally settled under the Rules of Conciliation and Arbitration of the International Chamber of Commerce (the “ICC”) in force as of the date of commencement of the arbitration proceedings by three (3) arbitrators. Each Party shall designate one (1) arbitrator and the two arbitrators thus appointed shall designate the Chairman of the tribunal by mutual consent within thirty (30) days after the date on which the appointment of the second arbitrator is notified to the first arbitrator by the ICC, failing which upon the request of either of the Parties, the Chairman of the tribunal shall be designated by the ICC as promptly as practicable. In designating arbitrators hereunder, the ICC shall designate persons fulfilling the ICC requirement of independence, who have experience with international business disputes, and who are competent in the English language. The arbitration proceedings shall take place in Switzerland and shall be conducted in the English language. The decision of the arbitrators shall be made by the majority. The arbitrators shall not have the power to alter, amend, or add to the provisions of this Agreement. The decision of the arbitrators shall be final and binding upon the Parties.

(16) The provisions of this Agreement shall be binding upon the legal successors, assigns and subsidiaries of each of the Parties.

Execution:

IN WITHNESS WHEREOF, this Agreement is drawn up and signed on this 16th day of November, 2009 by the authorized representatives of the Parties.

 

	 	 	 	 	 	 
	Signed: 	
/s/ M. Dost  

	 	Signed: 	
/s/ Julian Ross 

	 
	 	
Mr. M. Dost, Chairman & CEO  

	 	 	
Mr. J. Ross, Chairman & CEO

	 
	 	
Cardiatech Holland, BV 

	 	 	
OxySure Systems, Inc.

	 
	Date:	November 16, 2009	 	Date:	November 16, 2009	 

 

  

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Annexure A

All prices are Unit Prices FOB Frisco  Texas USA

Model 615, Base Systems:

$ 160

OxySure will show maximum efforts to apply $ 140 for Model, in case of a frame order between 5,000 to 10,000 units.

Model 615, Cartridges:

$ 72

Model 615, Disposable

$ 110

 

  

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Annexure B

CardiAid

The Parties mutually agree that the prices of the CardiAid Products shall be based on buying volumes as written below and the delivery term shall be ExWorks from the address below:

 

Combel Eolane Z.A., Ste Elisabeth, B.P. 92, 71304, Montceau-les-Mines Cedex, France.

 

a)  The prices in the second line of the table shall be the valid buying prices.

 

	
Unit Price for CardiAid CT0207 AED

	
€ 675,00

	
Unit Price for CardiAid CT0207T Trainer Unit

	
€ 245,00

 

At the end pf each calendar quarter, OxySure will receipt a quarterly Rebate of € 25,00 for each CardiAid CT0207, provided that OxySure has sold at least 1,250 units of CardiAid CT0207 during that quarter.

 

b) The prices above covers CardiAid AED, Electrodes, Battery, Emergency Set and Protection Bag. The prices of the optional accessories are listed as follows:

 

	
CardiAid CT0207W Wall Mount

	
€ 30,00

 

c) The prices of the spare parts and stand-alone accessories are as follows:

 

	
CardiAid CA-4BP Battery Pack

	
€ 30,00

	
CardiAid CA10-ES Electrodes

	
€ 25,00

	
CardiAid CT0207ET Trainer Electrodes

	
€ 16,00

	
CardiAid CT0207EK Emergency Kit

	
€ 15,00

	
CardiAid CT0207P Protection Bag

	
€ 25,00

	
CardiAid CT0207L Lithium Button Cell Battery

	
€ 5,00

 

d) The minimum order quantity per delivery for the CardiAid Products shall be as follows:

 

	
CardiAid AED

	
12 units

	
CardiAid CT0207W Wall Mount

	
8 units

	
CardiAid CA-4BP Battery Pack

	
12 units

	
CardiAid CA10-ES Electrodes

	
20 units

	
CardiAid CT0207ET Trainer Electrodes

	
20 units

	
CardiAid CT0207EK Emergency Kit

	
20 units

	
CardiAid CT0207P Protection Bag

	
5 units

	
CardiAid CT0207L Lithium Button Cell Battery

	
10 units

 

  

4<PAGE> 1

                               EXHIBIT 10.1
                         SEVERANCE AWARD AGREEMENT

     This Severance Award Agreement (this 'Agreement') is dated as of
September 21, 2010, by and between and Pyramid Oil Company, a California
corporation (the 'Company'), and John Alexander ('Executive') and together,
the 'Parties'.

     1.     AWARD.  In consideration of the many years of service that
Executive has performed for and on behalf of the Company, the Company hereby
awards to Executive a supplemental payment in connection with his future
severance of employment with the Company which is in addition to any other
benefits under any plans or agreements with the Company or which he has the
right to receive or which the Company may elect to grant to him at such time.

     2.     NATURE OF AWARD.  On the Payment Date, as hereafter defined,
Executive shall receive at the option of the Company (i) 25,000 shares (as
amended for any stock split, stock dividend or similar recapitalization
occurring after September 21, 2010) of the Company common stock (the 'Stock');
or (ii) the highest  market value of the Stock during the period from the date
of termination of employment until the Payment Date.  However, if the
Company's outstanding stock or substantially all of its property is acquired
by another Company (the 'Purchaser') for cash or property other than stock,
the amount to be paid on the Payment Date shall be that amount that is paid or
distributed in the transaction with respect to 25,000 shares of the Company
common stock.  If the Company is acquired for the stock of the Purchaser or
for both stock and other property, the Stock shall consist of the shares of
the Purchaser issued in the transaction with respect to 25,000 shares of the
Company common stock and the amount payable on the Payment Date shall be such
Purchaser's shares or their fair market value in cash and any other property
issued in the transaction in which the Purchaser acquired the Company.

     3.     PAYMENT DATE.  The Payment Date shall be either the date that is
the first day after six months have elapsed from the date of the severance of
Executive's employment with the Company or, if the Executive dies prior to end
of such period, the seventh day after the date of his death, whichever is
shorter.

     4.     EXISTENCE OF THE COMPANY.  If the Company shall not be in
existence on the Payment Date or if the Purchaser has not assumed the
obligations of the Company to Executive under this Agreement, the amount of
cash and/or securities that Executive is entitled to receive on the Payment
Date shall be placed in escrow for the benefit of Executive.

     5.     ELECTION TO ISSUE STOCK; EXECUTIVE'S OPTION.  If the Company
elects to issue the Stock to the Executive rather than to pay the fair market
value of the Stock to the Executive, such Stock shall be registered at the
Company expense before the issuance of the Stock or, if that is not possible
for any reason, as soon as may be practicable.  Notwithstanding the forgoing,
if the Stock is not registered within 90 days from the date of its issuance,
the Executive will have the option to sell the Stock to the Company at its
fair market value on the date that the Executive gives notice of the exercise
of the option.

     6.     DETERMINATION OF FAIR MARKET VALUE.  For purposes of this
Agreement, the fair market value of the Stock shall be determined as follows:

<PAGE> 2

          a.     If the stock of the Company is listed on a securities
exchange or is regularly quoted by a recognized securities dealer, and selling
prices are reported, its fair market value shall be the closing price of such
stock on the date the value is to be determined, but if selling prices are not
reported, its fair market value shall be the mean between the high bid and
low asked prices for such stock on the date the value is to be determined (or
if there are no quoted prices for the date of grant, then for the last
preceding business day on which there were quoted prices).

          b.     In the absence of an established market for the stock, the
fair market value thereof shall be determined in good faith by the Board of
Directors of the Company, with reference to the Company's net worth,
prospective earning power, dividend-paying capacity, and other relevant
factors, including the goodwill of the Company, the economic outlook in the
Company's industry, the Company's position in the industry, the Company's
management, and the values of stock of other corporations in the same or a
similar line of business.

     7.   GENERAL PROVISIONS.

          a.     SEVERABILITY.  If any provision of this Agreement or any part
of any such provision is held under any circumstances to be invalid or
unenforceable in any jurisdiction, then (i) such provision or part thereof
shall, with respect to such circumstances and in such jurisdiction, be deemed
amended to conform to applicable laws so as to be valid and enforceable to the
fullest possible extent, (ii) the invalidity or unenforceability of such
provision or part thereof under such circumstances and in such jurisdiction
shall not affect the validity or enforceability of such provision or part
thereof under any other circumstances or in any other jurisdiction, and
(iii) the invalidity or unenforceability of such provision or part thereof
shall not affect the validity or enforceability of the remainder of such
provision or the validity or enforceability of any other provision of this
Agreement.  Each provision of this Agreement is separable from every other
provision of this Agreement, and each part of each provision of this Agreement
is separable from every other part of such provision.

          b.     GOVERNING LAW; VENUE.  This Agreement shall be construed in
accordance with, and governed in all respects by, the laws of the State of
California (without giving effect to principles of conflicts of laws).  Any
legal action or other legal proceeding relating to this Agreement or the
enforcement of any provision of this Agreement may be brought or otherwise
commenced in any state or federal court located in the County of Kern in the
State of California.

          c.     WAIVER OF JURY TRIAL.  THE PARTIES IRREVOCABLY WAIVE THE
RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LEGAL PROCEEDING RELATING TO THIS
AGREEMENT OR THE ENFORCEMENT OF ANY PROVISION OF THIS AGREEMENT.

          d.     WAIVER.  No failure of any of the Parties to exercise any
power, right or privilege under this Agreement, and no delay on the part of
any of the Parties in exercising any power, right or privilege under this
Agreement, shall operate as a waiver of such power, right or privilege; and no
single or partial exercise of any such power, right or privilege shall
preclude any other or further exercise thereof or of any other power, right or
privilege.  Neither of the Parties shall be deemed to have waived any claim
arising out of this Agreement, or any power, right or privilege under this
Agreement, unless the waiver of such claim, power, right or privilege is
expressly set forth in a written instrument duly executed and delivered, and
any such waiver shall not be applicable or have any effect except in the
specific instance in which it is given.

<PAGE> 3

          e.     NONTRANFERABILITY.  The rights of the Executive under this
Agreement are not transferable except by will or the laws of descent and
distribution unless the prior written consent of the Company is obtained.

          f.     CAPTIONS.  The captions contained in this Agreement are for
convenience of reference only, shall not be deemed to be a part of this
Agreement and shall not be referred to in connection with the construction or
interpretation of this Agreement.

          g.     AMENDMENT.  This Agreement may not be amended, modified,
altered or supplemented other than by means of a written instrument duly
executed and delivered on behalf of the Parties.

          h.     NOTICES.  Any notice, demand or request required or permitted
to be given by either of the Parties pursuant to the terms of this Agreement
shall be given in writing by hand delivery, by facsimile (at the telephone
number set forth below) or three days after sending such notice by certified
or registered mail to address set forth below in the case of notice to the
Company.

                COMPANY                                 EXECUTIVE
          Pyramid Oil Company                        John Alexander

   By: /S/ MICHAEL D. HERMAN                    Name: /s/JOHN ALEXANDER
      -----------------------                         -----------------
   Name:   MICHAEL D. HERMAN                    Address: P O Box 832
                                                Bakersfield, CA 93302
   Title: Chairman of the Board                 Tel: (661) 325-1000
                                                Fax: (661) 325-0100

   Address: 2008 21 Street - P O Box 832
            Bakersfield, CA 93302
   Tel: (661) 325-1000
   Fax: (661) 325-0100

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