Document:

Unassociated Document

 

VENCORE SOLUTIONS LLC

Financial Services and Emerging Growth Companies Coming Together

 

VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company 

4500 SW Kruse Way, Suite 350 ♦ Lake Oswego, OR 97035 

(503)699-4997 ♦ Fax: (503) 675-3136

 

master lease agreement 

number 6906

 

 

	
Lessor Name and Address

 

VenCore Solutions llc,

a delaware limited liability company

4500 sw kruse way, suite 350

lake oswego, or 97035
	

Lessee Name and Address

 

oxysure systems, inc., 

a delaware corporation 

2611 internet blvd., suite 109 

frisco, tx 75034

 

 

this agreement has been modified at the request of lessee.  

terms and conditions

 

1. LEASE LINES AND LEASES.

 

a) Lease Lines. Lessor and Lessee hereby agree that Lessor will acquire and lease to Lessee, Equipment with
an aggregate value of up to the amount specified under "Approved Amount of Lease Line" on the attached Exhibit A-l to this Master Lease Agreement (such commitment is referred to as a "Lease Line"). From time to time, Lessor and Lessee may (but are under no obligation to) agree to establish one or more additional Lease Lines pursuant to which Lessor agrees to acquire and lease to Lessee, Equipment with an aggregate value of up to the amount specified for each such Lease Line. For each Lease Line agreed by the
parties, Lessor and Lessee will execute an additional Exhibit A to this Master Lease Agreement, and each such Exhibit A will be numbered sequentially (i.e., designated as Exhibit A-2, Exhibit A-3, etc.) and will incorporate the terms of this Master Lease Agreement. No Lease Line shall be established, and Lessor shall have no liability or obligation under any Lease Line, unless and until the appropriate Exhibit A is executed by both Lessor and Lessee.

 

b) Leases. Lessor and Lessee agree that the terms of this Master Lease Agreement shall apply to and be incorporated by reference in one or more Lease Schedules, each of which reference(s)
the Master Lease Agreement Number indicated above. The word "Lease" shall mean any one of the individual Lease Schedules executed hereunder, each of which shall incorporate the terms and conditions of this Master Lease Agreement (including the terms specified on the applicable Exhibit A hereto, as determined below) and shall be evidenced by the original Lease Schedule and an attached copy of this Master Lease Agreement. The word "Leases" shall mean all of the individual Lease Schedules executed under and incorporating
the terms of this Master Lease Agreement collectively. The word "Equipment" shall mean (i) for purposes of each Lease, the Equipment, which is the subject of such Lease, as defined and described in the applicable Lease Schedule; and/or (ii) all of the Equipment subject to all of the Leases, collectively, in each case as the context may require. Each Lease Schedule will include an Equipment description, the Equipment location, the minimum lease term and payment and security deposit information. Each Lease shall
be enforceable upon execution by Lessee and subsequent counter-signature by Lessor indicating acceptance. By entering into each Lease Schedule, Lessor and Lessee agree that (i) the transaction effected by the Lease Schedule constitutes a lease funding by Lessor under the Lease Line then in effect; (ii) Lessor's remaining funding obligations under the applicable Lease Line shall be reduced accordingly; and (iii) the initial lease period, the initial rent payment amount, the documentation fees, the security deposit
payment and release requirements, the renewal rent payment amounts applicable to the Lease shall be determined pursuant to the applicable Lease Line, as outlined on the Exhibit A to this Master Lease Agreement which specifies a "Date of Lease Line Approval" occurring on or before the date of the Lease Schedule and a "Funding Expiration Date" occurring after the date of acceptance of the Lease Schedule by Lessor, and shall be set forth with specificity on the applicable Lease Schedule.

 

 

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2. RENTAL PAYMENTS. Unless otherwise agreed in writing, each regular periodic payment of rent due during the term of each Lease shall be due
on either the tenth (10*) day of the month or the twenty-fifth (25th) day of the month (the "billing date"). The first billing date under each Lease where Lessee's acceptance occurred after the twentieth (20th) day of the month and prior to the sixth (6th) day of the following
month shall be the tenth (10th) day of the month immediately following Lessee's acceptance of the Equipment; or, if Lessee's acceptance occurs after the fifth (5th) day of the month and prior to the twenty-first (21st) day of the month, then the first billing date shall be the
twenty-fifth (25th) day of the month that Lessee completed its acceptance of the Equipment. On the date of acceptance of Equipment by Lessee, Lessee shall pay to Lessor pro rated rent, together with applicable taxes, from the date of acceptance of the Equipment until the first billing date as interim rent. In addition, Lessee shall pay to Lessor, on demand by Lessor, an amount equal to one-thirtieth (1/30) of the proportional monthly
rental payment per day for any amount funded by Lessor prior to acceptance of the Equipment by Lessee as additional interim rent. Lessee agrees to pay rent for the minimum term specified on the Lease Schedule, commencing on the first billing date and continuing until the Equipment is returned to Lessor on expiration or earlier termination of the Lease. Each periodic rental installment shall be the sum set forth on the applicable Lease Schedule, plus any applicable sales and/or use taxes, and shall, at Lessor's
option, include a pro rata portion of that year's property tax. Payments shall be made by Lessee at Lessor's address set forth herein or as otherwise directed by Lessor. Lessee shall not abate, set off, deduct any amount or reduce any payment for any reason without the prior written consent of Lessor. Payments are delinquent if not in Lessor's possession by the billing date.

 

3. COMMENCEMENT AND TERMINATION. The Lease term shall commence on acceptance
of the Equipment by Lessee. The Lease shall terminate on the expiration of its minimum term in months as set forth in the Lease Schedule following the first billing date and the fulfillment of all obligations of Lessee thereunder or upon notice by Lessor in the case of an Event of Default (as such term is defined in Section 26 below). In the event Lessee retains part or all of the Equipment beyond the term of the Lease, then the terms of the Lease shall stay in effect during such hold-over period, but
in no event longer than the automatic renewal period delineated in Section 11(d) hereunder, subject to Lessor's right to terminate the Lease upon an Event of Default.

 

4. NO WARRANTIES BY LESSOR. Lessor makes no warranty, express, implied or statutory, as to
any matter whatsoever, including, without limitation, the condition of the Equipment, its merchantability or its fitness for any particular purpose, and Lessee leases the Equipment "as is".

 

5. CHOICE OF LAW, VENUE AND JURISDICTION. The Lease shall be deemed to have been made and
shall be construed in accordance with the laws of the State of Oregon. Any and all suits or actions to enforce or for breach of the Lease may be, at Lessor's option, instituted and maintained in Multnomah County, State of Oregon, and Lessee expressly agrees to submit to personal jurisdiction in such venue.

 

6. ASSIGNMENT. Without Lessor's prior written consent, Lessee
shall not assign, transfer, pledge, hypothecate or otherwise dispose of the Lease, any interest therein, or sublease or loan the Equipment or permit it to be used by anyone other than Lessee or Lessee's qualified employees. Lessor may assign the Lease and/or grant a security interest in the Equipment, in whole or in part, to one or more assignees, without notice to Lessee. Lessor's assignee(s) and/or the secured party(ies) may reassign the Lease, and/or such
security interest without notice to Lessee. Each such assignee and/or such secured party shall have all rights of Lessor under the Lease, but no such assignee or secured party shall be bound to perform any obligation of Lessor. Lessee shall recognize each such assignment and shall not assert against any assignee and/or secured party any defense, counterclaim or setoff it may have against Lessor. Lessor and Lessee
acknowledge and agree that any assignment or transfer by Lessor shall not materially change Lessor's or Lessee's duties
or obligations under the Lease nor materially increase the burdens or risks imposed on Lessor or Lessee.

 

7. SELECTION AND ACCEPTANCE OF EQUIPMENT. Lessee has selected both the Equipment and the
supplier(s) from whom Lessor is to purchase the Equipment. Lessee shall arrange for transportation, delivery and installation of the Equipment at Lessee's expense. Lessee acknowledges that it has examined the Equipment as fully as it desires. If the Equipment is not properly installed, its delivery is delayed, it does not operate as represented by the supplier(s) or it is unsatisfactory for any reason, Lessee shall make no claim on account thereof against Lessor. Lessee authorizes Lessor to insert in the Lease
or other documents the serial numbers and other identification information for the Equipment as determined by Lessor.

 

8. SUPPLIER/BROKER NOT AGENT OF LESSOR. Lessee understands and agrees that neither the supplier(s), nor any salesperson or agent of the supplier(s),
is an agent of Lessor. Lessee further agrees that if any transaction hereunder is presented to Lessor by a lease broker, that such broker is acting as an agent of Lessee and is not an agent of Lessor. No

 

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salesperson or agent of supplier(s) or broker(s) is authorized to waive or alter any term or condition of the Lease, and no representation as to the Equipment or any matter by the supplier(s) or broker(s) shall in any way affect Lessee's duty to pay rent and perform its other obligations set forth in the Lease.

 

9. SECURITY DEPOSIT. Security deposits received by Lessor are to guarantee prompt and full payment of rent and the faithful and timely performance
of all provisions of the Lease by Lessee. Security deposits secure all obligations of Lessee to Lessor under the Leases or otherwise. Unless otherwise specified in the applicable Exhibit A to this Master Lease Agreement or in another instrument in writing signed by Lessor and Lessee, no interest will accrue on the security deposit to the account of Lessee. If Lessee is not in default under any agreement with Lessor, the security deposit shall be returned to Lessee per the terms specified in the applicable Exhibit
A to this Master Lease Agreement or such other instrument in writing signed by both Lessor and Lessee. In the event Lessee defaults on any of its obligations to Lessor, and if such default is not cured by Lessee within thirty (30) days subsequent to the date Lessor provides Lessee with written
notice of said default. Lessor shall have the right, but shall not be obligated, to apply the security deposits to cure such default, and if so applied, Lessee shall, within ten (10) subsequent days, restore the security deposit to the full amount held by Lessor prior to any application of
security deposit(s) to cure such default.

 

10. CANCELLATION FOR NON-DELIVERY. If, within thirty (30) days after the Lease is signed by Lessee, the Equipment has not been delivered to and
accepted by Lessee and if Lessor has accepted the Lease by signing, Lessor, by written notice to Lessee, shall have the option at any time thereafter to terminate Lessor's obligation, if any, to lease the subject Equipment to Lessee.

 

11. LEASE TERMINATION OPTIONS. Upon Lease termination, and provided Lessee is not in default, Lessee will have an option to purchase all, but
not less than all, of the Equipment, renew the term of the Lease, or return all, but not less than all, of the Equipment to Lessor, as set forth below:

a) Purchase Option. If Lessee exercises the option to purchase, then provided no Event of Default has occurred
and is then continuing, Lessee will at the expiration of the Lease term, renewal term or extension, as the case may be, purchase all, but not less than all, of the Equipment. The purchase price shall be the Equipment's then fair market value ("FMV") plus any applicable sales or other transfer tax. FMV, as applied to a purchase option, unless otherwise defined in the Exhibit A to this Master Lease Agreement, will be determined by Lessor based on a price a willing buyer would pay and a willing seller would accept
(neither buyer nor seller being compelled to act) for the Equipment as installed and in use, giving due consideration to its condition, utility, revenue-producing capability and replacement costs.

 

b) Renewal. If Lessee exercises the option to renew, then provided no Event of Default has occurred and is
then continuing, Lessee will at the expiration of the Lease term, renew the Lease with respect to all, but not less than all, of the Equipment for a period of three (3) months. Such renewal will be upon the terms of the Lease and the applicable Lease Schedule and the monthly rental amount will be the same as the contracted monthly payment amount on the applicable Lease Schedule.

 

c) Return. On the expiration of the Lease, or earlier termination of the Lease, or on Lessee default if Lessor
chooses, Lessee, at its expense, freight prepaid with full original value declared and insured, shall immediately return all, but not less than all, of the Equipment unencumbered to Lessor in good repair, condition and working order, ordinary wear and tear resulting from proper use thereof alone excepted, by properly packing it for shipment and delivering it to any reasonable place designated by Lessor.

 

d) Extension/Automatic Renewal. In the event Lessee has not exercised one of the three above options within
five (5) days after the expiration of the Lease, the Lease will automatically renew and be extended for a period of three (3) months. Payments will continue to be paid in advance and the first payment due under the extension will be due no later than ten (10) days after the expiration of the Lease.

 

12.OWNERSHIP. The Equipment shall at all times remain the personal property of Lessor. Lessee will at all times protect and defend, at its own
cost and expense, the ownership of Lessor against all claims, liens and legal processes of creditors of Lessee and other persons, and keep the Equipment free and clear from all such claims, liens and processes. If the Lease is deemed at any time to be one intended as security or should Lessor agree at any time to sell the Equipment to Lessee,
Lessee agrees that the Equipment shall secure, in addition to the indebtedness set forth in the Lease, indebtedness at any time owing by Lessee to Lessor. Not withstanding any other terms and conditions of the Lease, in the event that the

 

 

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Equipment includes computer software, Lessee agrees that Lessor has not had, does not have, nor shall have any title to such computer software. Lessee may have executed or may execute a separate software license agreement(s) and Lessee agrees that Lessor is not a party to nor responsible for any performance with regard to such license
agreement(s).

 

13.LOCATION AND RIGHT OF INSPECTION. The Equipment shall be kept at the location specified on the Lease Schedule, or, if none is specified,
at Lessee's address as set forth therein, and shall not be removed from there without Lessor's prior written consent. Lessor shall have the right at any time during normal business hours and upon reasonable notice to inspect the Equipment
and for that purpose have access to the location of the Equipment.

 

14. USE AND OPERATION. Lessee shall use the Equipment in a careful manner and shall comply with all laws relating to its possession, use and
maintenance. Lessee represents that the Equipment shall be used in its business or commercial concern and that no item of Equipment will be used for personal, family or household purposes.

 

15. REPAIRS AND ALTERATIONS. Lessee shall, at its own expense, maintain the Equipment in good repair, appearance and functional order. Lessee
agrees to comply with all maintenance schedules and procedures recommended by the manufacturer of the Equipment and, if available, purchase or otherwise enter into and adhere to dealer maintenance contracts. Lessee shall not make any alterations, additions or improvements to the Equipment without Lessor's prior written consent. All alterations, additions or improvements made to the Equipment shall belong to Lessor.

 

16. LOSS AND DAMAGE. Lessee shall bear the entire risk of loss, theft, damage or destruction of the Equipment from any cause whatsoever and,
as between Lessor and Lessee, unless otherwise agreed between the parties, Lessee shall bear that risk of loss during transportation and delivery, and Lessee shall arrange and pay for transportation and delivery. No loss, theft, damage or destruction of the Equipment shall relieve Lessee of the obligation to pay rent or to comply with any other obligation under the Lease. In the event of damage to any item of Equipment, Lessee shall immediately return such item of Equipment to a state of good repair (as determined
by Lessor in its sole discretion) at Lessee's expense. If either Lessor or Lessee determines that any item of Equipment is lost, stolen, destroyed or damaged beyond repair, Lessee shall, at Lessee's option: (a) replace the same with like Equipment in good repair, acceptable to Lessor; or (b) pay Lessor a sum equal to (i) all amounts due by Lessee to Lessor under the Lease up to the date of the loss, (ii) the unpaid balance of the total rent for the remaining term under the Lease which is attributable to said
item of Equipment, and (iii) an amount not to exceed twelve percent (12%) of the original cost of the said item of Equipment, which the parties agree shall represent the fair market value of Lessor's residual interest in said item of Equipment. The amounts in (ii) and (iii) shall be discounted to present value at a discount rate of six percent (6%) per annum.

 

17. INSURANCE. Lessee shall provide and maintain primary insurance against loss, theft, damage or destruction of the Equipment in an amount not
less than the full replacement value of the Equipment, with loss payable to Lessor and with zero deductible. At Lessor's request, Lessee also shall provide and maintain primary comprehensive general all risk liability insurance. Such insurance shall include, but shall not be limited to, product liability (when applicable) coverage, insuring Lessor and Lessee, with a
severability of interest endorsement or its equivalent, against any and all loss or liability for all damages, either to persons, property or otherwise, which might result from or happen in connection with the condition, use or operation of the Equipment, with such limits and with an insurer satisfactory to Lessor. Each policy shall expressly provide that the insurance as to Lessor shall not be invalidated by any act, omission or neglect of Lessee and cannot be canceled without thirty (30) days written notice
to Lessor. As to each policy, Lessee shall furnish to Lessor a certificate of insurance from the insurer evidencing the insurance coverage required by this Section. If Lessee fails to procure or maintain such insurance, Lessor shall have the right, but shall not be obligated, to obtain such insurance as to Lessor's and/or Lessee's interests. In that event, Lessee shall repay to Lessor the cost thereof with the next payment of rent, together with late charges as set forth in Section 24. For all Equipment leased
by Lessor to Lessee, Lessee irrevocably appoints Lessor as Lessee's attorney-in-fact to make claim for, receive payment of, and execute and endorse all documents, checks or drafts received in payment for loss or damage under such insurance policy(ies). All obligations of this Section shall extend throughout the term of the Lease and until the Equipment is returned to Lessor.

 

18. LIENS AND TAXES. Lessee shall keep the Equipment free and clear of all levies, liens and encumbrances. Lessee shall pay Lessor, on or before
the billing date, all charges and taxes, local, state or federal, which may now or hereafter be imposed upon the ownership, leasing, rental, sale, purchase, possession or use of the Equipment, excluding, however, all taxes on Lessor's income. If Lessee fails to pay said charges or taxes to Lessor when due, Lessor shall have the right, but shall not be obligated, to pay said charges or taxes, and add the same to the next payment of rent, together with late charges as set out in Section 24. Lessee agrees to pay
a reasonable fee to Lessor for the processing of property tax payments.

 

 

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19. INDEMNITY. Lessee shall indemnify Lessor against, and hold Lessor harmless from, any and all claims, actions, proceedings, expenses, damages and liabilities, including attorney fees, arising in connection with the Equipment, including, without limitation, its manufacture, selection,
purchase, delivery, possession, use, operation or return and the recovery of claims under insurance policies thereon. This indemnity provision shall survive termination, cancellation or breach of the Lease.

 

20. MISCELLANEOUS REPRESENTATIONS OF LESSEE. Lessee and any guarantor of the Leases shall provide Lessor with such corporate resolutions, financial
statements and other documents regarding the financial or credit condition of Lessee or any guarantor, which Lessor may request from time to time. Lessee represents and warrants that all credit and financial information submitted to Lessor in connection with the Leases is materially true and correct in all respects. Lessee agrees that Lessor and/or its assigns may at any time investigate the credit-worthiness of Lessee using all available means.

 

21. FINANCIAL STATEMENTS AND FIXED ASSET LISTS. So long as any monies are owed by Lessee to Lessor under the terms of any Lease, and/or until
all terms under each Lease have been fulfilled, Lessee will provide Lessor with financial statements on a monthly basis and will provide Lessor with fixed asset lists on a semi-annual basis. Lessee represents and warrants that all credit and financial information submitted to Lessor in connection with the Lease is materially true and correct in all respects.

 

22. UNIFORM PERSONAL PROPERTY LEASING ACT. To the extent permitted by applicable law, and to the extent the Lease is governed by the law of a
jurisdiction which has adopted a version of the Uniform Personal Property Leasing Act (also known as "Uniform Commercial Code - Leases", the parties hereto agree that: (a) the provisions thereof conferring remedies upon a Lessee or imposing obligations upon a Lessor shall not apply to the Lease, its interpretation or its enforcement; and (b) each Lease is a Finance Lease as defined by Uniform Commercial Code - Section 2A-103(l)(g). Lessee acknowledges that Lessee has reviewed and approved any written Supply Contract(s)
[as defined by Uniform Commercial Code - Section 2A-103(l)(y)] covering the Equipment purchased from the Supplier(s) for lease to Lessee. Lessee further acknowledges that Lessor has informed or advised Lessee, in writing, either previously or in the Lease, of the following: (a) the identity of the Supplier(s); (b) that the Lessee may have rights under the Supply Contract(s); and (c) that the Lessee may contact the Supplier(s) for a description of any such rights Lessee may have under the Supply Contract(s).

 

23. FINANCING STATEMENTS. At the request of Lessor, Lessee will join Lessor in executing financing statements pursuant to the Uniform Commercial
Code. For any and all Equipment leased by Lessor to Lessee, Lessor and or its assigns will execute and file financing statements and Lessee hereby authorizes Lessor or its agents or assigns to execute financing statements on Lessee's behalf, if necessary, and to file such financing statements in all jurisdictions where such execution and filing is permitted. It is agreed
that a carbon or photocopy of any financing statement may be filed in place of the original and that a copy hereof may be filed as a financing statement.

 

24. LATE CHARGES AND INTEREST. If Lessee fails to pay Lessor any amount when due or, in the case of an amount due to one other than Lessor, if
Lessor pays an amount on Lessee's behalf, then Lessee shall pay Lessor a late charge of five percent (5%) of such amount for each calendar month or part thereof for which rent or other sum shall be delinquent or shall have been paid by Lessor on Lessee's behalf. Lessee also agrees to pay Lessor the sum of thirty-five dollars ($35.00) for each check of Lessee's returned uncollectible by Lessee's bank. The amount of any charges assessed hereunder shall be added to and become part of the next rental payment or shall
be separately invoiced, at Lessor's option. Interest shall accrue on any unpaid or unreimbursed amounts at the maximum rate allowable by law or eighteen percent (18%) per annum, whichever is less, from the billing date until paid by Lessee.

 

25. TIME IS OF THE ESSENCE. Time is of the essence of the Lease. This provision shall not be waived by the acceptance on occasion of late or
defective performance.

 

26. DEFAULT. Lessee is subject to late charges and interest under
the above Section 24 if Lessee fails to pay rent or any other amount provided for under the Lease within ten (10) days after the same becomes due and payable. Lessee shall be in default if (a) Lessee fails to observe, keep or perform any other material provision of the Lease or of any other written agreement
with Lessor; or (b) Lessee abandons the Equipment; or (c) except as inconsistent with Federal Bankruptcy Law, any proceeding in bankruptcy, receivership or insolvency shall be commenced against Lessee or its property or any guarantor or such guarantor's property, Lessee or any guarantor files voluntarily for bankruptcy or reorganization, or Lessee or any guarantor makes an assignment for the benefit of its creditors; or (d) Lessee or any guarantor makes any material misrepresentation or materially false statement
as to its credit or financial standing in connection with the execution or the further performance of the Lease; or (e) any attachment or execution be levied on any of the Lessee's Property, except

 

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Property Lessor subordinates to Institutional Lender; or (f) Lessee permits any other entity or person to use the Equipment without the prior written consent of Lessor; or (g) in the business
and affairs of Lessee or any guarantor, there occurs a material change which shall impair the security of the Equipment or materially increase Lessor's credit risk involved in the Lease; or (h) Lessee moves any Equipment under Lease to any location outside of the United States and/or moves any Equipment under Lease to any other location not previously authorized in writing
by Lessor. Any of the foregoing, which if not cured by Lessee within a period of thirty (30) days of Lessee's receipt of Lessor's written notice of default, shall be deemed an "Event of Default".

 

27. REMEDIES. In the event of Lessee default, Lessor shall have the right and option, but shall not be obligated, to exercise any one or more
of the following remedies, which remedies or any of them may be exercised by Lessor without notice to Lessee and without any election of remedies by Lessor and, if the obligations of Lessee are guaranteed by a guarantor or guarantors, Lessor shall not be obligated to proceed against any such guarantor or guarantors before resorting to its remedies against Lessee under the Lease: (a) to the extent permitted under applicable law, Lessor and/or its agents may, without notice or legal process, enter onto any premises
of or under control of Lessee or any agent of Lessee where the Equipment may be or is believed to be located and repossess the Equipment, disconnecting and separating all thereof from any other property, using all means necessary or permitted by law, Lessee hereby expressly waiving any right of action of any kind whatsoever against Lessor arising out of such access to or removal, repossession or retention of the Equipment; (b) Lessor may declare all sums due and to become due under the Lease immediately due and
payable and institute litigation to collect the same; (c) Lessor may institute litigation to collect all rents and other amounts due as of the date of such default together with any sums that may accrue up to the date of trial; (d) Lessor may institute litigation to specifically enforce the terms of the Lease; (e) Lessor may terminate the Lease; (f) Lessor may require Lessee to return the Equipment pursuant to Section 11; and/or (g) Lessor may pursue any other remedy now, or hereafter, existing in law or equity.
However, damages for any future rentals and/or Lessor's residual value in the Equipment shall be discounted to present value at a discount rate equal to six percent (6%) per annum. In the event of any default by Lessee under the Lease, Lessor may at its sole discretion, although it shall not be obligated to do so, sell the Equipment at a private or public, cash or credit sale, or may re-let the Equipment for a term and a rental which may be equal to, greater than or less than provided in the Lease. Any proceeds
of sale or any rental payments received under the new lease, less Lessor's expenses of taking possession, reasonable attorney fees and/or collection fees, storage and/or reconditioning costs, the costs of sale or re-letting, and less Lessor's FMV residual in the Equipment, shall be applied to Lessee's obligations under the Lease, and Lessee shall remain liable for the balance. Lessee's liability shall not be reduced by reason of any failure of Lessor to sell or re-let.

 

28. EXPENSES OF ENFORCEMENT, ATTORNEY FEES. In the event of any default, Lessee shall pay Lessor a sum equal to all expenses, including attorney
fees, if any, incurred by Lessor in connection with the enforcement of any of Lessor's remedies and all expenses of repossessing, storing, repairing and selling or re-letting the Equipment together with interest on such amount at the maximum rate allowable by law or eighteen percent (18%) per annum, whichever is less, from the date such amount is paid by Lessor. In the event
litigation is instituted to enforce any of the terms of the Lease, the prevailing party shall be entitled to recover from the other party such sum as the court may judge reasonable as attorney fees at trial and upon appeal, in addition to all other sums provided for by law.

 

29. SUCCESSOR INTERESTS. Subject to any prohibition against assignment contained herein, each Lease shall be binding upon and inure to the benefit
of the heirs, successors and assigns of the parties. As used in each Lease, the term "Lessor" shall include any assignee or secured party of Lessor where appropriate.

 

30. MULTIPLE LESSEES. If more than one Lessee is named herein, the reference to Lessee refers to each and the liability of each shall be joint
and several.

 

31. NOTICES. Any written notice or demand under the Lease may be given to a party by mail at its address set forth on the Lease Schedule or at
such address as the party may provide in writing from time to time. Notice and demand so made shall be effective when deposited in the United States mail duly addressed with postage prepaid.

 

32. WAIVER. Failure of Lessor at any time to require performance of any provision of the Lease shall not limit any right of Lessor to enforce
that provision, nor shall any waiver by Lessor of any breach of any provision be a waiver of any succeeding breach of that provision or a waiver of that provision itself or any other provision.

 

33. NUMBER AND CAPTIONS. As used herein, the singular shall include the plural, and the plural the singular. All captions used herein are intended
solely for convenience of reference and shall in no way limit or explain any of the provisions of the Lease.

 

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34. duplicate enforceable as original. Lessee
hereby consents to the use of each original Lease Schedule, along with a photocopy of the fully executed Master Lease Agreement, for all purposes including, but not limited to, evidence the applicable Lease in litigation or any other judicial proceeding.

 

35. severability. If any provision of the
Lease is held invalid, such invalidity shall not affect other provisions, which can be given effect without the invalid provision.

 

36. entire agreement. This Master Lease Agreement
and each Lease Schedule, represent the entire, final and complete agreement of the parties pertaining to the lease of the Equipment under such Lease and supersedes or replaces all written and oral agreements heretofore made or existing by and between the parties or their representatives insofar as the lease of the Equipment is concerned, and no modification or addition to the Lease shall be binding unless agreed by a corporate officer, against whom enforcement is sought.

 

please request any changes lessee acknowledges that it has read and understands all of the terms and conditions contained in this master lease agreement and that
these terms and conditions shall govern each lease entered into by the parties.

 

 

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VENCORE SOLUTIONS LLC

Financial Services and Emerging Growth Companies Coming Together

 

VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company 

4500 SW Kruse Way, Suite 350 ♦ Lake Oswego, OR 97035 

(503)699-4997 ♦ Fax: (503) 675-3136

 

EXHIBIT A - 1 

TO

MASTER LEASE AGREEMENT NUMBER 

6906

 

 

	 
Lessor Name and Address

 

VenCore Solutions llc,

a delaware limited liability company

4500 sw kruse way, suite 350

lake oswego, or 97035
	 

Lessee Name and Address

 

oxysure systems, inc., 

a delaware corporation 

2611 internet blvd., suite 109 

frisco, tx 75034

 

 

Date of Lease Line Approval: September 8, 2006 

 

Funding Expiration Date: February 28, 2007

 

Approved Amount of Lease Line: $750,000.00

 

Minimum Funding Amount:  $22,500.00

 

Initial Monthly Rent Factor: 3.33 %. The Monthly Rent Factor for each Lease Schedule will be fixed at the time it is executed. Per each 0.25 % decrease or increase in the Prime Lending Rate,
as published in the Wall Street Journal, the Monthly Rent Factor will decrease or increase by 0.010% respectively.

 

Prime Lending Rate: 8.25 % (Effective September 8, 2006)

 

Initial Lease Term: 36 Months

 

Advance Payments: Lessee will pay Lessor the first and last payments at the time each individual Lease Schedule is executed.

 

Documentation Fees: 1.25 % of the total equipment invoice amount included on the individual Lease  Schedule, or $250.00, whichever is greater.

 

Security Deposit Percentage: 10% per each individual Lease Schedule, to be paid at the time each individual Lease Schedule is executed.

 

Security Deposit Releases: Before releasing Security Deposits at the end of each individual Lease Schedule, the following three conditions must exist: 1) Lessor must be in receipt of Lessee's
financial statements (Income / Profit and Loss Statement, Balance Sheet, Cash Flow Statement and Fixed Asset List) that are not more than 30 days old; 2) Lessee must demonstrate that they have cash reserves to service their debt for at least the subsequent six months; and 3) all payments must have been paid as agreed and all Lease Schedules must be current.

 

Minimum Renewal Rent Factor: 3.33 % for a minimum of three months.

 

Eligible Equipment: Computer Equipment, Office Equipment, Laboratory Equipment, Prototype

Equipment and Product Molds. Up to 10% of the Approved Amount of Lease Line may be comprised of Soft Costs ("Soft") where Soft will include, but not be limited to, delivery costs, design and engineering costs, extended warranties, installation.

	Exhibit A-1 to Master Lease Agreement     	 Page 1 of 2
	
 

Confidential
	 

  

8

  

costs, labor, leasehold improvements, maintenance and upgrade contracts, sales tax, software, trade show booths, training and upgrades to any equipment in which Lessor does not hold a security interest. For any given Lease Schedule, Soft shall not exceed 15 % of the schedule amount. No equipment may be shipped to and/or located at a co-location facility or any facility other
than Lessee's principal place of business, unless the co-location facility first provides Lessor with a waiver acknowledging Lessor's ownership of the equipment. All equipment to be leased must be approved by Lessor.

 

Cross-Collateralization: All Equipment on each individual Lease Schedule will be cross-collateralized t all Lease Schedules. Lessor will not release its security interest in the Equipment until
all obligations are paid in full.

 

End of Lease Options:  Refer to paragraph 11 "Lease Termination Options" of the Master LeasAgreement. Fair Market Value ("FMV") shall not exceed 12 % of the original Equipment cost on each individual
Lease Schedule.

 

Stock Grant: At the time Lessee executes each individual Lease Schedule, Lessee will issue Series A Preferred Stock ("the Shares") to VENCORE SOLUTIONS LLC, such that the number of Shares issued
will equal 5 % of the amount of each individual Lease Schedule divided by $ 1.00. The aggregate, maximum number of Shares issued to VENCORE SOLUTIONS LLC pursuant to the terms of the Master Lease Agreement and all Lease Schedules will not exceed 30,737.25 shares.

 

The terms and information set forth above are a part of the Master Lease Agreement Number 6906, entered into by and between VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company ("Lessor") and the Lessee set forth above.

 

The undersigned representative of Lessee affirms that he or she has read and understands this Exhibit A - 1 to Master Lease Agreement Number 6906 and is duly authorized to execute this Exhibit A - 1 on behalf of the Lessee, and that, if Lessee is a corporation, this Exhibit A - 1 is entered into with consent of Lessee's Board of Directors
and stockholders, if so required.

 

 

	
Lessor Name and Address

 

VenCore Solutions llc,

a delaware limited liability company

 

	

Lessee Name and Address

 

oxysure systems, inc., 

a delaware corporation 

 

 

 

	Exhibit A-1 to Master Lease Agreement     	 Page 2 of 2
	
 

Confidential
	 

  

9

  

Minutes of the meeting of the Board of Directors OxySure Systems, Inc. Wednesday, August 23,2006

A meeting of the Board of Directors of OxySure Systems, Inc. was held on Wednesday, August 23, 2006 at 3,00 pm CST via teleconference. The masting was attended by Julian Ross (Chairman), Mark Wagar and Don Real.

 

The meeting was called to order at 3:01pm CST. There being a quorum present, the meeting proceeded as called.

 

Welcome A Introductions: The Board spent several minutes being introduced to Don Reed.

 

Sales £ Distribution Activity Update-, Julian Ross provided an update on the progress related to the development of the distribution channel in the US. The diRtribtition funnel
is updated weekly, and is divided by activity in the following categories; qualified leads, primary contact, hot prospects, deals in progress and closed deals. The Board was pleased with the progress to date.

 

Production Planning Update: Julian Ross provided an update on process development and production planning. The Board also discussed the company's plan to conduct a market
test in which 200 or more units of the OxySure Model 615 was manufactured and utilized for market testing with channel partners, research organizations, first respondera and consumers. It was determined that this is a crucial step, prior to a full market launch, to determine market receptivity, finalize design/engineering requirements (from the market's standpoint) and solve any potential manufacturing issues. The Board expressed a desire to expedite this process. It is understood that this process will postpone
the full launch time line and will be costly in the short term, but will benefit shareholder value in the long term.

 

Operations/Facility Planning: Julian Ross updated the Board on the company's efforts to secure a new facility for its new headquarters, expanded operations and to prepare
for production. Part of our production process involves being compliant with Good Manufacturing Practice (GMP) for the FDA, and a compliant facility and compliant quality control systems are required. In addition, we are understood to be required to undergo quality audits in order to obtain and maintain a CE mark for distribution in the European Union.

NOW WHEREFORE, BE IT RESOLVED: That the Chief Executive Officer and other designated officers of the Company are hereby authorized to enter into a commercial real estate building and facilities lease, on reasonable and agreeable existing market rate terms and conditions, for the purpose
of relocating and expanding Company office space and Company product manufacturing and production facility, subject to the objectives of the market test and the full market launch of the Company's first product,

 

Venture Debt/Equipment Lease: The Board reviewed the terms of a proposal entered into by the Company with Vencore Solutions, LLC for a $750,000 master lease line for the acquisition of property, plant &
equipment.

 

 

OxySure Board Minutes 

August 23,2006 

Proprietary & Confidential

1

 

10

 

 

 

NOW WHEREFORE, BE IT RESOLVED: That the Chief Executive Officer and other designated officers of the Company are hereby authorized to enter into a credit facility structured as a lease for an amount of up to Seven-Hundred Fifty-Thousand Dollar ($750,000), subject to agreeable terms
with VenCore Solutions LLC ("Vencore") for the express purpose; of acquiring the equipment Company requires to operate the Company business, and manufacture and produce Company products.

OxySure Board Minutes Augtist23,2006 Proprietary & Confidential

 

There being no other matters arising, the meeting was adjourned. Signed and accepted by:

 

 

	 Julian Ross	 	 Date: 9/28/06
	 Marker  Wagar	 	 Date: 9/29/06
	 Don Reed	 	 Date: 9-28-06

 

 

 

OxySure Board Minutes 

August 23,2006 

Proprietary & Confidential

2

  

11

  

VENCORE SOLUTIONS LLC

Financial Services and Emerging Growth Companies Coming Together

 

VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company 

4500 SW Kruse Way, Suite 350 ♦ Lake Oswego, OR 97035 

(503)699-4997 ♦ Fax: (503) 675-3136

PLEASE PROVIDE INSURANCE INFORMATION

 

Master Lease #: 6906                              Date:
October 9, 2006

 

 

 

	 Insurance Agent: 	   SLEEPER,SEWEEL & COMPANY	 
	Address:	   122222 MERIT DRIVE, SUITE 200	 
	 City:	    DALLAS	 
	 State:	    TEXAS              ZIP:      75251	 
	 Phone:	     (972) 419-7500	 Fax:  (972) 419-7555
	 Attention:	    KRISTIN LONERGAN	 
	 	 	 

 

From:   OxySure Systems, Inc., a Delaware Corporation 

2611 Internet Blvd., Suite 109 

Frisco, TX 75034

 

 

Ins. Co.:X   CHUBB     Policy #: X  35838856   Expiration
Date:X  06/23/07

               

 

Dear Agent:

 

VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company ("Lessor") is about to enter into a Master Lease Agreement and one or more Lease Schedules (the "Lease(s)") with the above-referenced Lessee for the equipment to be more fully described on the Schedule "A" to each individual Lease Schedule (the "Equipment"). The Equipment will
be located at the address(es) indicated on the Schedule "A" to each individual Lease Schedule (Equipment Location) and has an original equipment cost of Seven Hundred Fifty Thousand Dollars and 00/100 ($ 750,000.00). Pursuant to the terms of the Lease, the Lessee is required to provide insurance coverage in relation to the Equipment and is required to provide Lessor with an insurance certificate naming Lessor and its assigns as loss payee and/or additional insured as indicated below:

 

Business personal property insurance is to be provided for all risks of any kind whatsoever for the full replacement value of the Equipment. Lessor and its assigns and successors as they may appear are to be named as loss payees, and the certificate should reflect such loss payees as follows: Lessor and its assigns and successors.

 

Liability coverage is to be provided with a combined single limit in the amount of $ 1,000,000.00. Lessor and its assigns and successors are to be named as additional insureds, and the certificate should reflect such additional insureds as follows: Lessor and its assigns and successors.

 

Please send the Certificate of Insurance with the standard (30) day notice of cancellation clause to VENCORE SOLUTIONS LLC, 4500 SW Kruse Way, Suite 350, Lake Oswego, OR 97035. Please place the above-referenced Master Lease Agreement Number on the Certificate of Insurance.

 

Thank you very much for your assistance.

 

 

 

	
Lessor Name and Address

 

VenCore Solutions llc,

a delaware limited liability company

 

	

Lessee Name and Address

 

oxysure systems, inc., 

a delaware corporation 

 

 

PLEASE PLACE MASTER LEASE NUMBER ON INSURANCE POLICY

 

	Insurence letter	 Confidential	 Page 1 of 1

 

  

12

  

VENCORE SOLUTIONS LLC

Financial Services and Emerging Growth Companies Coming Together

 

VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company 

4500 SW Kruse Way, Suite 350 ♦ Lake Oswego, OR 97035 

(503)699-4997 ♦ Fax: (503) 675-3136

 

 

SECURITY AGREEMENT

 

 

This Security Agreement ("Agreement") is made this X16th day of  X OCTOBER  20X06 by and between OxySure Systems, Inc., a Delaware Corporation of 2611 Internet Blvd., Suite 109, Frisco, TX 75034 ("Debtor") and VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company of 4500 SW Kruse Way, Suite 350, Lake Oswego, OR 97035 ("Secured Party"):

 

1. To secure the payment, with interest thereon, and the performance and fulfillment of all Obligations (as hereinafter defined) of Debtor to Secured Party, Debtor hereby grants to
Secured Party a security interest in all Debtor's personal property and fixtures, including, without limitation, all goods, documents, instruments (including promissory notes), vehicles, machinery, equipment, inventory, accounts, chattel paper, furniture, commercial tort claims, securities and all other investment property, supporting obligations, deposit accounts and personal property of every kind and nature, together with all proceeds, products and replacements thereof and substitutions, attachments and accessions
thereto (hereinafter collectively called "Property"), wherever located, now owned or hereafter acquired by Debtor. The above provision notwithstanding, the Property shall not include Intellectual Property, which includes discoveries or inventions, patents or patents pending, patent applications, trademarks or trademarks pending, trademark applications, copyright materials, research, marketing collateral, business plans, development or manufacturing process, or other general intangibles.

 

2. The term "Obligations" as used herein shall mean and include any and all contract or account payables, leases, loans, advances, payments, extensions of credit, endorsements, guaranties,
benefits, and financial accommodations heretofore and hereafter made, granted, or extended by Secured Party to Debtor or which Secured Party has or will become obligated to make, grant or extend to or for the account of Debtor; any and all interest, commissions, obligations, liabilities, indebtedness, charges, and expenses heretofore and hereafter chargeable against Debtor by Secured Party or owing by Debtor to Secured Party or upon which Debtor may be or have become liable as endorser or guarantor; any and all
renewals or extensions of any of the foregoing, no matter how or when arising and whether under any present or future agreement or instrument between Debtor and Secured party or otherwise, and the amount due upon any notes or other instruments or documents given to or received by Secured Party for or on account of the foregoing; and the performance and fulfillment by Debtor of all the terms, conditions, promises, covenants, provisions, and warranties contained in the Agreement and in any note, instrument, or
document secured hereby and in any present or future agreement or instrument between Debtor and Secured Party.

 

3. So long as Debtor is not in default under its obligations to Secured Party, then in the event an Institutional Lender provides Debtor with a debt facility, Secured Party will subordinate
its priority security position in all Debtor's Property, excluding all equipment and machinery, to said Institutional Lender.

 

4.     Debtor covenants and warrants to Secured Party that:

 

a) Debtor is the lawful owner of the Property and has the sole right and lawful authority to make this Agreement; the Property and every part thereof is free and clear of all liens,
security interests and encumbrances of every kind and description (except any held by Secured Party); and Debtor will defend the Property against all claims and demands of all persons. Secured Party is hereby authorized to file one or more financing statements, including any amendments and continuation statements, in order to perfect, amend or continue its security interest. Debtor shall pay all filing fees, title transfer fees and other costs and expenses incurred by Secured Party to perfect or continue its
security interest or lien. Debtor irrevocably appoints Secured Party as its attorney-in-fact to execute any documents required in order to note or perfect its security interest in any titled vehicle or equipment.

 

b) Other than noted in Section 3 above, Debtor will keep the Property free and clear of all attachments, levies, taxes, liens, security interests and encumbrances of every kind, nature,
and description. Debtor, at its own cost and expense, will maintain and keep the Property in a good state of repair. Debtor will not sell, assign, mortgage, lease, pledge, or otherwise

 

	
Security Agreement 

 
	 	 Page 1 of 4
	Confidential	 	 

 

 

13

 

 

dispose of the Property or any interest therein without the prior written consent of Secured Party, which consent will not be unreasonably withheld.

 

c) Debtor will procure and maintain insurance covering the Property against loss or damage by fire and extended coverage perils, theft, burglary and pilferage, in amounts and under
policies acceptable to Secured Party. Secured Party or its assignee shall be named as the loss payee under such insurance policies. All policies (or the loss payee endorsement) shall provide that the insurer must give Secured Party at least twenty (20) days notice before canceling, amending, or declining to renew its policy. All premiums thereon shall be paid by Debtor. Debtor shall promptly notify Secured Property of any loss or damage to any of the Property. Debtor hereby irrevocably appoints Secured Party
as Debtor's attorney-in-fact to make claim for, receive payment of, and execute and endorse all documents, checks, or drafts received in payment for any loss or damage under any of said insurance policies.

 

d) The Obligations are undertaken for commercial purposes only and the Property is in the possession of Debtor at its principal place of business, or, if not, at a location which has
been disclosed in writing and agreed to by Secured Party prior to the execution hereof. Debtor will not remove the Property from said location without prior written consent of Secured Party, nor change its present business location(s), name(s) or state of formation without at least thirty days prior written notice to Secured Party. At all times, Debtor will allow Secured Party or its representatives free access to and right of inspection of the Property. At Secured Party's request, Debtor shall furnish its current
financial statements to Secured Party.

 

e) Debtor shall comply (so far as may be necessary to protect the Property and the lien of this Agreement thereon) with all of the terms and conditions of leases, mortgages, or deeds
of trust covering the premises where the Property, or any portion thereof is located. Debtor shall also comply with any orders, ordinances, laws, or statutes of any city, state, or other governmental entity having jurisdiction with respect to the premises or the conduct of business thereon.

 

5.     Debtor shall be in default upon occurrence of any of the following (hereinafter referred to as "Event of Default"):

 

a) Debtor shall fail to pay any Obligations after the same becomes due (whether at the stated maturity, by acceleration or otherwise); Debtor shall cease doing business, shall become insolvent, or make an assignment for the benefit of creditors;

 

c) Bankruptcy proceedings or proceedings for arrangement or reorganization under any Bankruptcy Act or proceeding for the appointment of a receiver, trustee, liquidator, or custodian
for Debtor or any of Debtor's property shall be commenced by or against Debtor;

 

d) Debtor shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or in any other agreement with Secured Party, or an event of default has
occurred under any other agreement with Secured Party;

 

e) Any of the warranties or representations made to Secured Party by Debtor in this Agreement or in connection with the Obligations shall at any time prove to be untrue or misleading
in any material respect as of the time when made; or

 

f)   There shall be a substantial change in the management or change in the majority ownership or control of Debtor.

 

6. If Debtor shall be in default hereunder, Secured Party shall have the right to pursue any other remedy now, or hereafter, existing in law or equity, without prior notice or demand, and specifically may enforce any one or more of the following remedies, successively, alternately, or concurrently, without waiving its right to enforce
any other remedy or any Obligation according to its terms:

 

a) To the extent Debtor has failed to perform or fulfill an Obligation, Secured Party may, but shall not be obligated to, perform or fulfill the same, or cause the performance or fulfillment
thereof. The costs and expenses of performance or fulfillment, including reasonable attorney fees, shall be added to the amount of the Obligations and secured by the Property, and payable on demand.

 

b) Secured Party may require Debtor to assemble the Property and make it available to Secured Party at a location designated by Secured Party. Secured Party may also take possession
of the Property wherever it may be, and enter any of the premises of Debtor with or without process of law, and search for, take possession of, remove, or keep and store the same in said premises, without liability for trespass nor charge for storage of the Property, until sold.

 

 

	
Security Agreement 

 
	 	 Page 2 of 4
	Confidential	 	 

 

14

 

 

c) Secured Party may sell, lease or transfer the Property or any part thereof at public or private sale, for cash or on credit, and on such terms as Secured Party may in its sole discretion elect. The requirements of reasonable notice shall be met if such notice is given at least ten (10) days before the time of the sale or other disposition.
The proceeds of any sale, lease or transfer shall be applied first to pay all costs, expenses and charges for repossessing, storing, repairing, preparing for sale, selling and/or leasing the Property, including attorney fees, and second to the payment of the Obligations. If the proceeds are insufficient to pay the costs and expenses set forth herein and the Obligations due to Secured Party, Debtor shall remain liable to Secured Party for any deficiency.

 

7. Debtor will indemnify and save Secured Party (including its agents, employees, officers and members) harmless from all loss, damage, liability, and expense, including reasonable
attorney fees, that Secured Party may sustain or incur arising out of or relating to (a) its security interest in the Property; (b) Secured Party's efforts to obtain or enforce payment, performance, or fulfillment of any of the Obligations; (c) the enforcement or foreclosure of this Agreement; or (d) the prosecution or defense of any action or proceeding either against Debtor or against Secured Party concerning any matter growing out of or connected with this Agreement or any of the Obligations or Property.

 

8. This Agreement cannot be changed or terminated orally. With respect to Secured Party, only a writing, signed by an officer of Secured Party, shall be effective to change, modify,
waive, or terminate any of the Obligations, this Agreement or any provisions hereof, or any other agreement between Debtor and Secured Party. If Debtor is in default hereunder, and Secured Party fails to demand full payment, performance, or fulfillment hereunder or fails to otherwise exercise any right, privilege, remedy or option available to Secured Party, such shall not be deemed a waiver of any right of Secured Party. The acceptance by Secured Party of any payments subsequent to such default shall not be
deemed a waiver of any rights of Secured Party.

 

9. This Agreement, including any and all of Secured Party's contractual obligations to Debtor, may be assigned by Secured Party along with any and all Obligations without notice to
Debtor. Upon such assignment, Debtor agrees not to assert against any assignee any defense, set-off, recoupment, claim, counterclaim, or cross-complaint which Debtor may have against Secured Party, whether arising hereunder or otherwise. All rights, remedies, options, privileges, and elections given to Secured Party hereunder or otherwise, including Secured Party's contractual obligations to Debtor hereunder, shall inure to the benefit of Secured Party or any assignee, and their respective successors and assigns.
Debtor may not transfer, pledge, or assign its interests and obligations hereunder without the prior written approval of Secured Party.

 

10. All notices, requests and demands to or upon any party hereto shall be deemed to have been duly given or made upon receipt when sent by registered or certified mail, addressed to
such party as follows, or to such other address as may be hereafter designated in writing by such party to the other party hereto: (a) three (3) business days after being deposited in the United States mail, proper postage prepaid; (b) as of the business day after the day delivered to overnight courier when delivered to such courier by sender in timely fashion so as to permit next-day delivery; and (c) upon delivery, when personally delivered. Secured Party or Debtor may change its address by giving the other
party written notice thereof in accordance with the terms of this Section 9.

 

11. If Debtor is in default hereunder, Debtor agrees to reimburse Secured Party for its reasonable attorney's fees, court costs and collection costs, whether or not any litigation is
commenced by Secured Party, which are incurred by Secured Party to enforce this Agreement or collect any Obligations due to Lender, including, without limitation, (a) all expenses of repossessing, storing, repairing and selling and / or leasing the Property; and (b) attorney's fees and costs incurred at trial, on appeal and in any mediation, arbitration or bankruptcy proceeding. All such amounts shall, until paid by Debtor to Secured Party, constitute Obligations of Debtor secured by the Property and shall be
payable on demand.

 

12. If a court of competent jurisdiction finds any provision of this Agreement to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision
invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforceable.

 

13.   Choice of Law and Venue; Jury Trial Waiver.

 

(a)  THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF,
AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING

 

	
Security Agreement 

 
	 	 Page 3 of 4
	Confidential	 	 

  

15

  

 

HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF OREGON.

 

(b)  DEBTOR HEREBY SUBMITS TO VENUE IN MULTNOMAH COUNTY, OREGON, PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL
BE DEEMED OR OPERATE TO PRECLUDE SECURED PARTY FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION AGAINST DEBTOR OR THE COLLATERAL IN ANY OTHER JURISDICTION.

 

(c) DEBTOR AND SECURED PARTY HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. DEBTOR AND SECURED
PARTY REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

IN WITNESS WHEREOF, this Agreement has been executed effective the date first above-written.

 

 

	
SECURED PARTY

 

VenCore Solutions llc,

a delaware limited liability company

 

	

DEBTOR

 

oxysure systems, inc., 

a delaware corporation 

 

 

 

	
Security Agreement 

 
	 	 Page 4 of 4
	Confidential	 

  

16

  

 

 

  

17

  

 

  

18

  

VENCORE SOLUTIONS LLC

Financial Services and Emerging Growth Companies Coming Together

 

VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company 

4500 SW Kruse Way, Suite 350 ♦ Lake Oswego, OR 97035 

(503)699-4997 ♦ Fax: (503) 675-3136

 

 

NEGATIVE PLEDGE AGREEMENT

 

This Negative Pledge Agreement ("Agreement") is made as of this  16th day of October , 2006 ("Effective Date"), by and between OxySure Systems, Inc., a Delaware Corporation (the "Lessee") and VENCORE SOLUTIONS LLC, a Delaware
Limited Liability Company ("Lessor").

In connection with that certain Master Lease Agreement and one or more Lease Schedules of even date herewith, between Lessee and Lessor (the "Lease(s)") and the other related documents being concurrently executed between Lessee and Lessor in connection therewith, Lessee hereby agrees as follows:

 

1. Prior to the expiration of 24 months subsequent to the Effective Date, this Agreement shall be applicable and effective, if and only if and when the Lessee is in default (as "default"
is defined in Section 4 of the Security Agreement) of the Security Agreement, the Master Lease Agreement or any other agreement entered into by the parties pursuant to the Lease Line. Further, upon Lessee's cure or other resolution of any said default(s), Lessee shall be released from its obligations as delineated in this Agreement. After the expiration of 24 months subsequent to the Effective Date, this Agreement shall never be applicable or effective.

 

2. Prior to the expiration of 24 months subsequent to the Effective Date, AND if Lessee is in default (as "default" is defined in Section 4 of the Security Agreement) of the Security
Agreement, the Master Lease Agreement or any other agreement entered into by the parties pursuant to the Lease Line, except for the granting of non-exclusive licenses in the ordinary course of business, Lessee shall not (i) sell, transfer, assign, mortgage, pledge, lease, grant a security interest in, or encumber, (ii) enter into any agreement, document, instrument or other arrangement (except with or in favor of Lessor) with any person which directly or indirectly prohibits or has the effect of prohibiting Lessee
from selling, transferring, assigning, mortgaging, pledging, leasing, granting a security interest in, or encumbering, or (iii) enter into any negative pledge agreement or other similar agreement or arrangement with any person (except with or in favor of Lessor) pursuant to which Lessee directly or indirectly agrees that it will not assign, pledge, mortgage, lease or grant a security interest in or upon, any of Lessee's intellectual property, including, without limitation, the following:

 

(a) Any and all copyright rights, copyright applications, copyright registrations and like protection in each work or authorship and derivative work thereof, whether published or unpublished
and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held (collectively, the "Copyrights");

 

(b) Any and all trade secrets, and any and all intellectual property rights in computer software and computer software products now or hereafter existing, created, acquired or held;

 

(c) Any and all design rights which may be available to Lessee now or hereafter existing, created, acquired or held;

 

(d) All patents, patent applications and like protections, including, without limitation, improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part
of the same, including, without limitation, the patents and patent applications (collectively, the "Patents");

 

	 Negative Pledge Agreement    	 Confidential	 Page 1 of 2

 

 

19

  

 

 

(e) Any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the businesses
of Lessee connected with and symbolized by such trademarks (collectively, the "Trademarks");

 

(f) Any and all claims for damages by way of past, present and future infringements of any of the rights included above, with the right, but not the obligation, to sue for and collect
such damages for said use or infringement of the intellectual property rights identified above;

 

(g) All licenses or other rights to use any of the Copyrights, Patents or Trademarks and all license fees and royalties arising from such use to the extent permitted by such license
or rights;

 

(h) All amendments, extensions, renewals and extensions of any of the Copyrights, Patents or Trademarks; and

 

(i) All proceeds and products of the foregoing, including, without limitation, all payments under insurance or any indemnity or warranty payable in respect of any of the foregoing.

 

 

3. Prior to the expiration of 24 months subsequent to the Effective Date, Lessee will only grant an Institutional Lender a security interest in Lessee's intellectual property, as security
interest(s) are outlined in section 2 of this agreement, if the Institutional Lender provides a debt facility equal to or exceeding one million dollars.

 

4. Initially capitalized terms used herein without definition shall have the same meanings as set forth in the Loan Agreement.

 

5. This Agreement shall terminate upon the payment and performance in full of the Obligations and expiration or termination of Lessor's commitment to make any Advances under the Loan
Agreement.

 

 

	
LESSOR

 

VenCore Solutions llc,

a delaware limited liability company

 

	

LESSEE:

 

oxysure systems, inc., 

a delaware corporation 

 

 

 

	 Negative Pledge Agreement    	 Confidential	 Page 2 of 2

  

20

  

 

 

  

21

  

 

  

22

  

 

  

23

  

 

  

24

  

 

VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company 4500 SW Kruse Way, Suite 350 ♦ Lake Oswego, OR 97035 (503)699-4997 ♦ Fax: (503)675-3136

 

waiver agreement

 

NTEC for Technology, Inc. ("NTEC") is the lessee of real property commonly known as 2611 Internet Blvd., Suite 109, Frisco, TX 75034 ("the Premises"). NTEC rents space of the Premises to OxySure Systems, Inc., a Delaware Corporation ("Customer") and in connection with such provision of rental space, Customer may place on the Premises
certain equipment, which is leased to Customer by VENCORE SOLUTIONS LLC, a Delaware Limited Liability Company ("Leasing Agent").

 

1. NTEC acknowledges that it has received notice that Customer has or will enter into one or more Lease Schedules to the Master Lease Agreement (the "Equipment Lease(s)") with Leasing
Agent, whereby Customer will lease from Leasing Agent certain Equipment, including, but not limited to all Assets, as amended from time to time by Customer and NTEC (the "Equipment"), all or part of which is currently or may be located upon or affixed to the Premises.

 

2. NTEC agrees that Leasing Agent's rights in the Equipment are superior to any right or claim which NTEC may have and waives and releases any and all rights it may have against the
Equipment for any rent or other sums due or to become due, under any agreement with Customer or otherwise, and all claims and demands of every kind against the Equipment.

 

3. NTEC agrees that the Equipment will remain personal property and will not become part of the Premises, regardless of the manner in which it may be affixed to real property. In the
event of default by Customer on any of its Equipment Leases with Leasing Agent, NTEC will allow Leasing Agent or its agents to enter the Premises to remove the Equipment in the exercise of its rights and remedies arising under the Equipment Lease, provided Leasing Agent gives NTEC ten (10) days written notice. Each of Customer and Leasing Agent, jointly and severally, shall indemnify and hold NTEC harmless for any and all costs, expenses and damages caused by Customer and/or Leasing Agent, their agents or employees,
in connection with the exercise of Leasing Agent's rights under this Waiver.

 

4. The Waiver shall be binding upon the heirs, administrators, executors, successors and assigns of NTEC, and shall inure to the benefit of the successors and assigns of Leasing Agent.

 

5.      Except as expressly provided herein, NTEC's rights under this agreement with Customer remain unmodified.

 

IN WITNESS WHEREOF, the undersigned have executed and delivered this Waiver this 16th day of October, 2006.

 

	
oxysure systems, inc.,

a delaware corporation

 

 
	
NTEC FOR TECHNOLOGY, INC.

 

 

 

	 Waiver Agreement	 Confidential	 Page 1 of 1

 

  

25

  

 

September 25, 2006

 

Micah Adams 

Relationship Manager 

VenCore Solutions LLC

4500 SW Kruse Way, Suite 350 

Lake Oswego, OR 97035

 

 

Re:   Term Sheet Amendment

Dear Micah:

 

This writing supersedes our letter to you dated September 20, 2006 and shall serve to memorialize our discussion regarding the amendment of the Proposal with Summary Terms & Conditions dated August 1, 2006. Subject to the parties closing the transaction contemplated in said Proposal, OxySure Systems, Inc. agrees to grant VenCore
Solutions, LLC, shares of OxySure, Inc. Series A Preferred Stock ("Shares") in an amount(s) equal to five percent (5%) of each individual Lease Schedule, with the total grant of Shares not to exceed a maximum of Thirty-Thousand Seven-Hundred Thirty-Seven and One-Quarter (30,737.25) Shares. This provision replaces the following section in the said Letter Agreement, which is deleted from the terms:

 

 

WARRANTS:  LESSEE will provide LESSOR with warrants to purchase 12.5% of each drawdown amount up to a maximum of 75,000 Common Shares at a strike price equal to $1.00 per share to expire 10 years after the commencement date of each schedule.

 

If the foregoing accurately reflects the substance of our discussion, please affix your signature in the appropriate place below.

 

 

	 	Very  truly yours
Oxysure Systems, Inc.
	 	 
	  	
Julian T Ross

CEO

	 
	 

 

 

201l Internet Boulevard, Suite 109, Frisco, TX 75034 USA 

Frisco, Texas Office: (+1) 888-70XYSURE Fax: (+1) 214-618-6494 

Virginia Office: (+1) 703-687-1616 Fax: (+1) 703-580-7496

  

26Unassociated Document

NTEC FOR TECHNOLOGY, INC. LICENSE AGREEMENT

This LICENSE AGREEMENT (the "License Agreement," "Agreement," or "License"), is entered into as of the 8th day of April, 2004 (the "Effective Date" except as otherwise provided herein) by and between OxySure Systems, Inc. (hereinafter referred to as "Licensee") and NTEC for Technology, Inc., a 501(c)(3), Texas non-profit corporation (hereinafter
referred to as "NTEC," "Center," or "Licensor").

 

WITNESSETH

WHEREAS, NTEC was established to assist medical technology-based start-up businesses and entrepreneurs through its program; and

WHEREAS, Licensee has submitted an application to participate in the NTEC program and a business plan in support of that application; and

WHEREAS, NTEC, upon review of Licensee's application and supporting documentation, has accepted Licensee's application for participation in the NTEC program; and

 

WHEREAS, Licensee is desirous of being the recipient of the resources to be made available to the participants of the NTEC program;

NOW, THEREFORE, in consideration of the mutual covenants and agreements stated herein, the parties agree as follows:

1. NTEC hereby grants to Licensee and Licensee hereby accepts this License Agreement to use the space located within 2611 Internet Blvd. as described in Exhibit A (the "Building"), Frisco, Texas, such space and area allowances within Suite 109 of the Building (hereinafter referred to as the "Suite"), being more fully identified on
the attached Exhibit B (the "Premises"). NTEC shall also make available the following resources and/or facilities:

a.  Licensee will have full access to the Suite common areas which encompasses two conference rooms, a break room/kitchen, lab area, and reception area. Licensee
will have access to additional storage space for a fee as outlined in section 2c. of this Agreement. Further, Licensee will have reasonable use of equipment provided in the common areas subject to section le. of this Agreement. Licensee will also have access to
all building common areas including mailroom, break areas, rest rooms and foyer.

b.  Basic local telephone service will be provided at no charge to Licensee. Licensee shall pay for certain telephone services, including but not limited to, service initiation
charges, customized phone feature sets including mail charges, and long distance charges. Any replacement or upgrading of telephone equipment or service by 

 

 

1

 

 

Licensee shall be at the expense of the Licensee and with the prior written approval by NTEC.

c. NTEC shall provide Licensee with normal and reasonable usage of electric, water, and sewer service for five (5) days per week of normal office use. However,
there will be an allocated charge for after-hours usage of the HVAC system of $50/per hour. After-hours use is defined as 7p.m.-7a.m. Mon.-Fri., after 2p.m. on Saturday and all day on Sunday. All federal holidays are considered after hours use. Normal and reasonable
common area janitorial service shall be provided by NTEC during the term of the License Agreement. In the event Licensee makes excessive use of these services, as reasonably determined by NTEC, the costs of such excessive use shall be borne by Licensee.

d. The Licensee has the right to use parking spaces in NTEC's designated Parking Areas. "Parking Areas" shall mean those portions of the areas under NTEC's control
which from time to time are designated by NTEC for the parking of automobiles and other automotive vehicles engaged in business at NTEC. Covered parking is provided on a space-available basis for an additional charge of $35/per month, per space. For management and
security reasons, NTEC reserves the right to request that Licensee provide license plate numbers for its employees and otherwise cooperate with NTEC's management of the Parking Areas.

 

All Parking Areas and facilities which may be furnished by NTEC in or near the Building; including any employee parking areas, pedestrian sidewalks and ramps, land­scaped areas and other areas and improvements which may be provided by NTEC for the Licensee's exclusive use or general use, in common with other licensees, their officers,
agents, employees and visitors, shall at all times be subject to NTEC's exclusive control and management, and NTEC shall have the right from time to time to modify and enforce reasonable rules and regulations with respect thereto. NTEC shall have the right to (a) police the Parking Areas and (b) discourage non-tenant parking. The Licensee shall cause its officers, agents and employees to park their automobiles only in such areas as NTEC from time to time may designate by written notice to the Licensee as employee
parking areas, and the Licensee shall not use or permit the use of any of the Parking Areas in any manner which will obstruct the driveways or throughways serving the Parking Areas allocated for the use of others.

 

e.  In the event that the Premises, Building, equipment, or any NTEC property is damaged or destroyed by Licensee (excluding ordinary wear and tear), Licensee
shall pay same standard replacement or repair costs. In the event that normal maintenance is required for said Premises, equipment or property belonging to NTEC, Licensee shall notify NTEC, which is the only entity authorized to arrange for service. The cost for
any unauthorized repairs ordered by the Licensee shall be borne solely by the Licensee.

 

 

2

 

 

f.  Licensee is governed by the Building Rules and Regulations, which may be amended from time to time, of the owner of the property, Hall 2611 Internet Associates, Ltd., as described in Exhibit C attached hereto.

 

2. The initial term of this License Agreement shall be for one (1) year, which shall commence on April 8, 2004 (the "Commencement Date") and end at 11:59 P.M. on April 7, 2005 (the 'Termination Date").

a.  Licensee may request a renewal for two (2) additional terms of one (1) year each by providing written notice of said request to NTEC at least sixty (60) days prior to the termination date of this License Agreement. If NTEC grants the renewal, all the terms and conditions contained herein shall apply. License extension requests by the Licensee will be subject
to 1.) the Exit and Graduation Criteria outlined in Exhibit D attached hereto, and 2.) other terms and conditions outlined in this License Agreement.

 

b. The monthly cash license payment (the "Monthly Payment") during the term of this License Agreement shall be payable by Licensee in equal monthly installments, on or before the first day of each
month. The Monthly Payment, based on the number of Offices, Flex Spaces and other resources used by the Licensee as described in Exhibit B attached hereto, is $641.00 (includes common area allocation fee as noted in Section 2c. below) for the period covered by this
License Agreement. Each Licensee is limited to one office for every three cubes licensed and licensees are limited to two offices total (subject to space availability).

 

c. The following is a schedule of license fees as of April 8, 2004, associated with the use of NTEC facilitie

 

	          Description  Office	
 

 
	Rate
	
          Cube / Flex Space
	
 

 
	$550 per month
	           Dedicated Lab Space	
 

 
	$425 per month
	          Dedicated Storage Space (keyed cabinet)	
 

 
	$5/sq. ft. per month
	          Dedicated Storage Space (keyed empty office)	
 

 
	$ 10 per month each
	          Drinks and Snacks	
 

 
	$150 per month
	           Phone Activation	
 

 
	
$50 per month (subject to adjustment) $150 per line

 

Additionally, there is a monthly 12% common areas allocation fee applied to all Licensees based on monthly license fee before the common area allocation.

 

If any portion of the total monthly license payment is not paid by the 10th of each month, a 5% late fee will be assessed on the outstanding balance.

d. Costs for any facility resources provided by NTEC, which are not indicated in paragraph 1 above, shall be borne by the Licensee.

 

 

3

 

 

e. As part of this License Agreement, Licensee will grant NTEC a warrant for the transfer of equity to NTEC, under the terms outlined in the Stock Purchase Warrant attached as Exhibit E.

3.  It is understood by the parties that this License Agreement constitutes a License Agreement, not a lease, and that the relationship of the parties hereunder in respect to occupancy of the Premises at NTEC is that of Licensor and Licensee, and not that of landlord and tenant. As such, NTEC reserves the right to change space
assignments or to terminate this License Agreement by written notice if the assigned Premises does not function as a place of business for Licensee for more than four (4) consecutive weeks, except for normal and customary business closures and holidays, or if Licensee in NTEC's reasonable discretion no longer meets the criteria (see attached Exhibit D) for participation in the NTEC program. The foregoing notwithstanding, NTEC shall not change space assignments unless and until equivalent space equipped with amenities
and utilities comparable to existing space is available and ready for immediate occupancy.

a. The Premises are licensed for the purpose of furthering Licensee's business objectives as outlined in Licensee's business plan and approved by NTEC, pertinent portions
of which are attached hereto and incorporated herein by reference as Exhibit F. Notwithstanding Paragraph 11 herein and without limiting the generalities of the foregoing, if NTEC has reason to believe at any time that Licensee is no longer following its business
plan as approved by NTEC and attached as Exhibit F, NTEC retains the right, in its reasonable discretion, to review Licensee's status, and, if in NTEC's reasonable discretion, Licensee's then current status is not in accord with Licensee's business plan or consistent
with the goals of NTEC, Licensee will be deemed in default of the License Agreement. The license granted in Section 1 of this Agreement may terminate fifteen (15) days after Licensee defaults in its obligations to NTEC. Further, if Licensee or any person or entity
claiming rights by, through, or under Licensee, refuses to surrender possession of the Premises after such fifteen (15)n  day period, then Licensee, or such person or entity, will be deemed a "tenant" committing a "forcible detainer" for purposes of Chapter
24 {Forcible Entry and Detainer ) of the Texas Property Code. Additionally, Licensee will execute concurrent with this License Agreement, a Services Agreement. A default related to the Services Agreement
will also constitute a default for purposes of the License Agreement. If suchdefault is not cured within the prescribed timeframes both agreements will be deemed in default.

b. In the event Licensee fails to pay any past due Monthly Payment within ten (10) days of receipt of written notice from NTEC, then NTEC shall have the right to terminate
this License immediately and Licensee shall bear the costs of collection incurred by NTEC.

c. In the event that any default hereunder by Licensee other than non- payment of Monthly Payments remains uncured for a period of ten (10) days after Licensee's receipt
of written notice from NTEC specifying such default, then NTEC shall have the right to terminate this License immediately.

 

 

4

 

 

d. Further, either party may terminate this Agreement upon ten (10) days written notice, so long as Licensee is not in default of this Agreement at that time.

e.  If this License Agreement is terminated for any reason, Licensee shall vacate its Premises at NTEC within five (5) business days of the termination date. For each
day that Licensee continues to occupy its Premises at NTEC beyond the termination date, Licensee shall be liable for 5% of its regular Monthly Payment per day. Licensee shall also be liable for all costs, legal and otherwise, incurred by NTEC in facilitating Licensee's
vacating of its Premises.

4. Licensee shall obtain and maintain at its expense, throughout the term of this License Agreement, insurance against loss or liability in connection with bodily injury, death, property
damage or destruction, occurring within the Premises at NTEC or arising out of the use of the Premises at NTEC by Licensee or its agents, employees, officers, licensees, invitees, visitors, and guests, under one or more policies of Comprehensive General Liability insurance or its
equivalent having such limits as to each as are reasonably required by NTEC from time to time, but in any event of not less than a minimum coverage of One Million Dollars ($1,000,000) for bodily injury to or death of any one person during any one occurrence, One Million Dollars ($
1,000,000) for bodily injury to or death of all persons in any one occurrence, and One Million Dollars ($ 1,000,000) for property damage or destruction during any one occurrence.

NTEC and Hall 2611 Internet Associates, Ltd. (Building owners) shall be listed as "additional insured" on all insurance policies. The above-referenced insurance shall contain a provision that states that it cannot be canceled except upon thirty (30) days' written notice to all additional insurers. NTEC shall be furnished with two (2) copies
of said policy or certificate of insurance no less than five (5) business days prior to the effective date of this License Agreement.

 

5. NTEC and its officers, agents and employees, shall not be liable for any injury, damage or loss to person (including Licensee invitees), equipment, facilities, or property occurring
on or about the Premises at NTEC caused by the use, negligence or misconduct of Licensee, its officers, agents, employees, or invitees. Licensee shall defend, indemnify and hold harmless NTEC, its officers, agents, and employees from any and all losses, expenses, demands, actions, suits, claims or liabilities of whatsoever nature resulting from any injury or death to any person or any property damage arising out of Licensee's use or occupancy of the Premises and affiliation or connection with NTEC including but
not limited to actions in furtherance of its business plan, research, and use of the Premises at NTEC. Licensee shall also defend, indemnify and hold harmless NTEC, its officers, agents, and employees from any and all claims resulting from a breach of this Agreement.

 

6. If, during the term of this License Agreement, the Premises at NTEC are so damaged by fire or other catastrophe that the Premises are rendered unfit for occupancy and said Premises
cannot be repaired within thirty (30) days of the happening of such injury; then Licensee shall have the option to declare this Agreement void from the date of such injury. In such case, the Monthly Payment shall be apportioned to the date of damage and NTEC shall

 

 

5

 

 

reimburse Licensee for the balance and shall repossess the Premises. If the damage is such that the Premises are unfit for occupancy but can be repaired within thirty (30) days thereafter, NTEC shall enter and repair with reasonable promptness, and this License Agreement shall not be affected except that the Monthly Payment shall be suspended
while such repairs are being made. In case of any damage which shall not render the Premises unfit for occupancy, this License Agreement shall not be affected, but NTEC may enter upon and repair the said Premises with reasonable promptness.

 

7. Licensee shall maintain the Premises in its original condition to the satisfaction of NTEC, normal wear and tear excepted. Prior to the commencement date of this License Agreement,
a joint survey of the Premises, indicating its exact condition, shall be made by representatives of both Licensee and NTEC. A written report of said survey shall be attached hereto and another survey shall be made upon termination of this License. These surveys are attached as Exhibit G. Licensee shall repair any damage to the Premises revealed by such survey, normal wear and tear excepted. Otherwise, NTEC shall make the required repairs and/or replacement of damaged property; and shall provide Licensee with
an invoice representing the costs to NTEC of making said repairs, said invoice due and payable by Licensee upon receipt. Licensee, under this paragraph, is deemed to have accepted the Premises in the condition existing on the commencement date of this License Agreement. Licensee is not liable for damage to the Premises due to the sole negligence of NTEC.

 

8. On or before the Effective Date, Licensee shall pay to NTEC a sum equal to one (1) month's Monthly Payment to be held by NTEC as security deposit for the full, faithful and punctual
performance by Licensee of the Licensee's terms, covenants and conditions contained herein for the full term of this License Agreement. If, during the term of this License, Licensee is granted additional space at NTEC, an additional security deposit payment may be required.

If, at any time, Licensee fails to fully, faithfully and punctually perform any of the terms, covenants and conditions contained herein, then NTEC may apply any part or the whole of said security deposit to indemnify NTEC for any damage NTEC may have suffered or will suffer because of such failure to perform by the Licensee and NTEC shall
in no way be precluded from recovering in addition to the said security deposit, any other damages or expenses that NTEC may suffer by reason of any violation by the Licensee of the terms, covenants and conditions contained herein.

If this License Agreement is terminated prior to the expiration of the term thereof by the agreement of the parties, or in accordance with the terms contained in this License Agreement, and the Licensee has fully, faithfully and punctually performed all of the Licensee's terms, covenants and conditions contained herein up to the date of
termination thereof, then the deposit shall be returned by NTEC to the Licensee.

9. Except as specified in paragraphs 3 and 6, NTEC shall not be responsible to Licensee for any damages or inconveniences caused by interruption of business or inability to occupy
the Premises for any reason whatsoever, provided that Licensee's Monthly Payment shall be abated or proportionately reduced according to the extent to which Licensee is deprived of such use if the business interruption is due to circumstances caused by NTEC that are not in the normal course of business or that are not a part of normal operating
procedures at NTEC.

 

10. Licensee shall not assign this License, either in whole, or in part, to others without the prior written consent of NTEC. A change in control of Licensee shall constitute an assignment.

 

11. Licensee's admittance to the NTEC program is based, in part, on NTEC's review of Licensee's business concept, objectives and plans. NTEC reserves the right to approve or deny, at
its sole discretion, Licensee's use of the Premises beyond that anticipated in connection with Licensee's approved business plan. Use of the Premises and other facilities and services made available to Licensee by NTEC shall be in furtherance of Licensee's business concept objectives and plans and the Premises are not to be used for any illicit or illegal purposes.

Licensee agrees to abide by NTEC's policies and regulations concerning the use of any such facility or service universally applicable to all other licensees at NTEC. Licensee's use of the Premises and equipment contained therein may not interfere, in any manner, with use by other licensees of nearby facilities and equipment. Research involving
the use of animals or human subjects by Licensee is not permitted.

12. As a material inducement for NTEC to enter into this License Agreement, Licensee represents and warrants that Licensee will maintain and use the Premises free from contamination
by or from any "hazardous substances" or "hazardous wastes" (as such terms are defined and/or used in applicable state or federal law or the regulations issued under them, ncluding without limitation, the federal Comprehensive Environmental Response, Compensation
and Liability Act ["CERCLA"] and the Resource Conservation and Recovery Act ["RCRA"]). Licensee shall not engage in operations at or upon the Premises which involve the generation, manufacture, refining, transportation, treatment, storage, handling or disposal of

 

 

6

 

 

hazardous substances or hazardous wastes except in strict compliance with all applicable federal, state and local laws, regulations, rules, orders and permits. Licensee further covenants that it will not cause or permit to exist as a result of an intentional or unintentional
action or omission, the releasing, spilling, leaking, pumping, pouring, emitting, emptying or dumping from, or about the Premises of any such hazardous substances or hazardous wastes.

 

Licensee agrees to indemnify and hold harmless NTEC, its subsidiaries and affiliates, and any officer, director, shareholder, employee, or any agent of NTEC or its affiliates, subsidiaries, successors or assigns (collectively, the "Indemnified Parties"), from any and all liability, damages, costs, claims, suits, actions, legal or administrative proceedings, interest, losses, expenses, and
reasonable attorneys' fees, and appellate attorneys' fees (including any such fees and expenses incurred in enforcing this indemnity) resulting from, arising out of, or in any way connected with breach or alleged breach of the provisions of the preceding paragraph of this paragraph, including but not limited to monetary damages, expenses, injury to or the death of any person (including that of any Indemnified Party) or physical damage to property of any kind wherever located and by whomever owned (including that
of any Indemnified Party) arising out of or in any way connected with the presence on, in or under the Premises of any asbestos polychlorinated biphenyls (PCB's) or the generation, handling, storage or disposal of any

 

hazardous substances or hazardous wastes or medical or biological wastes in violation of the provisions of the preceding paragraph of this paragraph. This indemnification is an independent covenant and shall survive the termination of this License Agreement.

 

13. NTEC reserves the right at all times to control all facilities licensed hereunder, and to enforce all applicable necessary laws, rules and regulations without obligation or assumption
of any responsibility to do so.

 

14. At the request of NTEC, but not less frequently than at six (6) month intervals, Licensee agrees to review its current and prospective business status with NTEC. Progress will be
monitored in relation to the most recent business plan and established, measurable business objectives, which are regularly reviewed and approved by both Licensee and NTEC. If, in NTEC's sole discretion, the Licensee's current status is not sufficiently in accord with the most recent previously reviewed plan, a default condition will exist.

 

15. During the term of this Agreement and for six (6) months thereafter, the Licensee shall not solicit for hire or employ, nor knowingly allow any if its employees, agents, officers,
or representatives to solicit for hire or employ, any employee(s) of other licensees of NTEC without the express written permission of the other licensees.

 

16. NTEC will install all locks at the Suite entry doors and to said Premises for each Office Space allocated to Licensee as noted in Exhibit B to said Premises and provide two (2) keys
for each lock to Licensee. Licensee will execute, concurrent with this Agreement, the Key Agreement covering the keys noted above and any other keys or related access materials required by Licensee for access to the Building, Suite or Premises, attached as Exhibit H. NTEC will have the master key to each lock, and may enter Premises, at reasonable times, for inspection, maintenance, or repair, or for any other necessary reason. Entry for other than normal maintenance and inspection activities shall be preceded
by appropriate notice to Licensee. In the event of an emergency, notice will be given at the first reasonable opportunity, even after the fact.

 

17. Unless in default of this Agreement, Licensee shall have the right to remove any and all equipment, goods, fixtures and other property which it has placed or affixed within or to
Premises, provided Licensee repairs all damage to Premises caused by such removal and returns the Premises to its condition as of the Effective Date of this License Agreement. Licensee shall not remove improvements made to the facilities by NTEC or on behalf of NTEC during the Licensee's occupancy.

 

18. Licensee shall not represent or imply that it is affiliated in any way with NTEC other than as a Licensee and participant in the NTEC program. Licensee shall not represent or imply
that its activities, products or services are endorsed or approved by NTEC. Any public announcements by Licensee, which mention NTEC or Licensee's relationship with NTEC, shall be submitted to NTEC for review and approval of said language relating to the Licensee's relationship with NTEC.

 

 

7

 

 

19. Nothing contained in this Agreement shall create any partnership or joint venture between the parties. Neither party may pledge the credit of the other or make any binding commitment
on the part of the other.

 

20. This Agreement and the related Service Agreement, including any and all exhibits referred to in those Agreements or delivered under the terms of those Agreements, contains all the
understandings and agreements of the parties relating to the subject matter hereof and supersedes all prior or contemporaneous agreements, proposals, etc., and may be changed only by an agreement in writing signed by the parties hereto.

 

21. Any notice, demand, consent, approval, request or other communication or document to be given hereunder to a party hereto ("Notice") (a) shall be in writing; (b) shall be deemed to
have been given (i) on the 3rd business day after being sent as certified or registered mail in the United States mail or other nationally recognized carrier, postage prepaid, return receipt requested, or (ii) on the next business day after being deposited (with instructions to deliver it on such business day) with a reputable overnight courier service (if such Party's receipt thereof is acknowledged in writing) on being given by hand or other actual delivery to such Party; and (c) (i) if given to NTEC, shall
be addressed to 2611 Internet Boulevard, Suite 109, Frisco, Texas, 75034, and (ii) if given to Licensee, shall be addressed to 2611 Internet Boulevard, Suite 109, Frisco, Texas, 75034.

 

22. The validity, interpretation and effect of this License Agreement shall be governed by the laws of the State of Texas, excluding conflicts of laws principals. The laws of the State
of Texas shall govern all rights, remedies, obligations and liabilities arising pursuant to this Agreement.

 

23. Any person executing this Agreement expressly warrants that he/she is the authorized representative of the party for which he/she has signed.

 

24. NTEC shall have no claim of ownership to any information, technology, or product developed by Licensee during the term of this License Agreement, unless said information, technology,
or product is specifically assigned to NTEC by separate legal instrument.

 

25. NTEC will use all reasonable efforts to prevent the dissemination of any proprietary information related to work of the Licensee unless authorized to do so by the Licensee. NTEC,
however, shall have the right to disclose Licensee's activities in a generalized, descriptive manner.

 

26. Licensee will cooperate fully with NTEC to publicize the NTEC program and the Licensee's participation in the NTEC program.

 

27. All disputes and claims arising out of or relating to this Agreement, or the breach thereof, shall be conclusively resolved by a binding arbitration administered in accordance with
the Commercial Arbitration Rules of the American Arbitration Association ("AAA"), and judgment upon any arbitration award shall be binding and may be entered in any court of other

 

 

  

8

  

 

tribunal having jurisdiction thereof, the parties hereby consenting to the jurisdiction of such courts for this purpose. If the parties herein cannot agree upon an arbitrator, one shall be appointed by the AAA who shall be neutral and experienced in the subject matter of the dispute. The arbitrator's award shall be final, binding and in writing.
Unless the parties agree otherwise in writing, all arbitration proceedings shall be conducted in Collin County, Texas. The parties to this Agreement will be responsible for their respective arbitration fees.

Notwithstanding the provisions above, each party hereby acknowledges and agrees that any breach of its obligations with respect to the proprietary rights of the other will cause irreparable injury for which there are not adequate remedies at law and that the party shall be entitled to equitable relief in addition to all other remedies available
to the party.

This Agreement may be signed in counterparts, each of which shall be deemed an original.

	 	LICENSOR:

NTEC FOR TECHNOLOGY, INC.

	 	
 

	 	 
	 	 
	 	
LICENSEE:

 

OXYSURE SYSTEMS, INC. 

	 	
 

 

 

  

9

  

 

EXHIBIT A

 

HALL OFFICE PARK 

A HALL FINANCIAL GROUP DEVELOPMENT

 

STRATEGIC LOCATION

 

Centered in one of the fastest growing regions in the nation, Hall Office Park is located on Dallas Parkway just north of State Highway 121. A convenient 25 minutes from D/FW International airport and downtown Dallas, the development is adjacent to the Stonebriar Centre Mall and near the Westin Stonebriar Resort, Stonebriar Country Club and
a host of other retail, restaurants and business support services.

 

2611 INTERNET BOULEVARD (FACILITY)

 

	• 	
120,000 total square feet in two stories

 

	• 	
Floor plate of 72,000 square feet, side A

 

	• 	
Floor plate of 48,000 square feet, side B

 

	•	
Two-story lobby with special backlit glass walls

 

	• 	
Covered and surface parking

 

	• 	
Granite inlaid concrete aggregate exterior

 

	• 	
Floor-to-ceiling glass windows and 10-foot ceilings

 

	• 	
Energy-efficient design and infrastructure

 

	• 	Redundant power connection

 

PROFESSIONAL SERVICES AND ADVANCED AMENITIES

 

	
•  
	
Hall Office Park Conference Center is the perfect venue for meetings, seminars and events, with a 1,500 square-foot customizable meeting room and turn-key event planning services. The Conference Center features the latest presentation equipment, audio/video conferencing, web casting capabilities,
and a reception/registration area.

 

	
•  
	
"HOP To It" Services provides tenants convenient time-saving resources such as complete concierge service, massage therapy sessions, laundry and dry cleaning pick up and delivery, valet car washing and detailing, and much more.

 

	
•  
	
The "Chill-Out" Room offers tenants a quiet place to relax in over-sized leather recliners, catch up on the latest business news, and plug in to high-speed Internet stations.

 

	
•  
	
Frisco Family YMCA features fitness equipment, group exercise classes and one-on-one training.

 

	
•  
	
Gateway National Bank is on-site with full-service lobby and drive-through banking facilities.

 

	
•  
	
The Texas Sculpture Garden is part of Hall Office Park's expansive 100+ piece international art collection with 37 contemporary sculptures by some of Texas' most important living artists.

 

	
    •
	
On-site ownership and management team provides unparalleled service to meet and exceed tenant needs.

 

 

10

 

 

EXHIBIT B

SPACE AND OTHER RESOURCES ALLOCATED TO LICENSEE

 

PREMISES LOCATION 

Hall Office Park 

2611 Internet Blvd. Suite 

109 Frisco, TX 75034

 

	Description	 	Reference #	 	Monthly License Fee	 	Annualized Fee
	Office 1	 	128	 	$550.00	 	$6,600.00
	Office 2	 	 	 	 	 	 
	Cube 1 	 	 	 	 	 	 
	Cube 2	 	 	 	 	 	 
	Cube 3	 	 	 	 	 	 
	Cube 4	 	 	 	 	 	 
	Lab Space	 	 	 	 	 	 
	Storage Space	 	 	 	 	 	 
	Drinks / Snacks	 	 	 	$25.00 (subject to adjustment)	 	$300.00
	Phone Activation	 	Ext. 7918	 	One Time	 	$150.00
	1 Month Deposit	 	 	 	One Time	 	$500.00
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Fee Subtotal    	 	 	 	$575.00  	 	$7,550.00
	12% Common Area  Allocation   	 	 	 	$66.00 	 	$792.00
	 	 	 	 	 	 	 
	TOTAL FEES 	 	 	 	$641.00  	 	$8,342.00

 

 

                                                                                                          

 

11

 

 

EXHIBIT C

 

BUILDING RULES AND REGULATIONS

1. Parties. For purposes of these Rules and Regulations, "Licensee" includes the servants, employees, agents, invitees
and licensees of such Licensee, others permitted by such Licensee to use or occupy such Licensee's premises, and anyone for whom such Licensee is otherwise legally responsible. "Building," for purposes of this document, is the commercial office space located at 2611 Internet Blvd., Frisco, TX, and includes the Premises occupied by Licensee.

 

2. After Hours Air Conditioning. Air conditioning (both heating and cooling) shall be provided by NTEC from Monday through
Friday only between the hours from 7:00 A.M. to 7:00 P.M. and on Saturday only between the hours from 7:00 A.M. to 2:00 P.M. No air conditioning (heating or cooling) will be provided on Sundays or on state or national legal holidays. If Licensee shall require air conditioning (heating or cooling) at hours or on days other than as specified above, NTEC agrees to furnish the same for the area designated in a written request delivered by such Licensee to the Project Manager not later than 3:00 P.M. of the first
business day next preceding the date upon which such Licensee requests such extra usage. For such service, Licensee shall pay NTEC, upon delivery of an invoice, NTEC's then established charges as outlined in Section lc. of the License Agreement.

 

3. Electrical Equipment. NTEC has not agreed to furnish electrical capacity for the Premises in excess of three (3) watts
per Rentable Square Feet. If Licensee requires electricity in excess of that which NTEC has agreed to provide, NTEC will, upon the written request of such Licensee and the written agreement of such Licensee to pay all costs and expenses for the same, make reasonable efforts to supply such service through the then existing feeders servicing the Building. No machinery or mechanical equipment other than ordinary portable business machines may be installed or operated in Licensee's premises without NTEC's prior written
consent, which consent shall not be unreasonably withheld or delayed, and in no case (even where the same are of a type so excepted or as so consented to by NTEC) shall any machines or mechanical equipment be so placed or operated so as to impair or interfere with any of the Building's services or the proper and economic heating, cooling, cleaning or other servicing of any portion of the Building or so as to disturb other licensees. Machines and mechanical equipment which may be permitted to be installed and
used in a licensee's premises shall be so equipped, installed and maintained by such licensee as to prevent any disturbing noise, vibration or electrical or other interference from being transmitted from such premises to any other area of the Building.

 

4. Common Areas. The rights of each Licensee in the entrances, corridors and elevators servicing the Building are limited
to ingress to and egress from such Licensee's premises, and Licensee shall not use, or permit the use of, the entrances, corridors or elevators for any other purpose. Licensee shall not invite to the Licensee's premises, or permit the visit of, persons in such numbers or under such conditions as to interfere with the use and enjoyment of any of the plazas, entrances, corridors, elevators and other facilities of the Building by any other licensees or Building occupants. Fire exits and stairways are for emergency
use only and shall

 

 

12

 

 

not be used for any other purpose by Licensee. Licensee shall not encumber or obstruct, or permit the encumbrance or obstruction of, any of the sidewalks, plazas, entrances, corridors, elevators, fire exits or stairways of the Building. The Building owner (Hall 2611 Internet Associates, Ltd.) reserves the right to control and operate the public
portions of the Building and the public facilities, as well as facilities furnished for the common use of the Licensee, in such manner as Building management, in its reasonable judgment, deems best for the benefit of the Licensee generally.

 

5. Nails, Hooks. No nails, hooks or screws shall be driven into or inserted in any part of the Building, except by Building
maintenance personnel.

 

6. Signs. No signs, posters, advertisements, or notices shall be painted or affixed on any of the windows or doors, or
other parts of the Building, except of such color, size and style and in such places, as shall be first approved in writing by the Building owner. No lettering, sign, advertisement, notice or object shall be displayed in or on the exterior windows or doors, or on the outside of Licensee's premises, or at any point inside Licensee's premises where the same might be visible outside of such premises, without the prior written consent of Building owner. In the event of the violation of the foregoing by Licensee,
NTEC may remove the same without any liability, and may charge the expense incurred in such removal to the Licensee violating this rule. Interior signs, elevator cab designations and lettering on doors and the Building directory shall, if and when approved by NTEC, be inscribed, painted or affixed for each Licensee by NTEC at the expense of such Licensee, and shall be of a size, color and style acceptable to NTEC. NTEC shall have the right to prohibit any advertising or identifying sign by Licensee which, in
NTEC's reasonable judgment, tends to impair the reputation of the Building or its desirability as a building for others, and upon written notice from NTEC, Licensee shall refrain from and discontinue such advertising or identifying sign.

 

7. Hazards. Licensee shall not do anything, or permit anything to be done, in or about the Building, or bring or keep
anything therein, that will in any way increase the possibility of fire or other casualty or obstruct or interfere with the rights of, or otherwise injure or annoy, other Building occupants, or do anything in conflict with laws, rules or regulations of any governmental authority. In addition, Licensee shall not use or keep in the Building any inflammable explosive fluid or substance or otherwise dangerous fluid, chemical or substance or any illuminating material, unless it is battery powered, Underwriters' Laboratory
approved.

 

8. Heavy Equipment. NTEC shall have the power to prescribe the weight and position of safes or other heavy equipment,
which may over stress any portion of the floor. All damage done to the Building by the improper placing of heavy items, which over stress the floor, will be repaired at the sole expense of the Licensee which causes such damage. If, in the judgment of NTEC, it is necessary to distribute the concentrated weight of any heavy object, the work involved in such distribution shall be done at the expense of the Licensee and in such manner as NTEC shall determine.

 

9. Security. All entrance doors in the Building shall be left locked during non­business hours (7:00 P.M. - 7:00 A.M.
M-F), and on weekends and federal holidays.

 

 

13

 

 

10. Deliveries, Removals. All deliveries must be made through the service entrance during normal working hours which hours
will be determined by Building management from time to time. Prior approval must be obtained from the NTEC for any deliveries that must be received after normal working hours. All removals, or the carrying in or out of any safes, freight, furniture, packages, boxes, crates or any other object or matter of any description must take place during such hours, in such manner as NTEC or its agent may determine from time to time. The persons employed to move safes and other heavy objects shall be acceptable to NTEC.
Arrangements will be made with NTEC by Licensee when moving large quantities of furniture and equipment into or out of the Building. All labor and engineering costs incurred by NTEC in connection with any moving specified in this rule, including a reasonable charge for overhead and profit, shall be paid by Licensee to NTEC on demand.

 

11. Cleaning. All Licensees shall cooperate with Building employees in keeping all parts of the Building neat and clean.

 

12. Hallways. No showcases or other articles shall be put in front of or affixed to any part of the exterior of the Building,
nor placed in the halls, elevator shafts or stairways.

 

13. Animals. No birds, animals or reptiles, or any other creatures, shall be brought into or kept in or about the Building
other than may be required by the Americans with Disabilities Act or similar state law.

 

14. Control of Access. NTEC and/or Building management may refuse admission to the Building outside of normal business
hours, which hours will be determined by NTEC or Building management from time to time, to any person not known to the watchman in charge or not having a pass issued by NTEC or the Licensee whose premises are to be entered or not otherwise properly identified, and NTEC may require all persons admitted to or leaving the Building outside of such times to provide appropriate identification. Licensee shall be responsible for all persons for whom it issues any such pass and shall be liable to NTEC for all acts or
omissions of such persons. Any person whose presence in the Building at any time shall, in the judgment of NTEC, be prejudicial to the safety, character or reputation of the Building or of its occupants may be denied access to the Building or may be ejected therefrom. During any invasion, riot, public excitement or other commotion, NTEC and/or Building management may prevent all access to the Building by closing the doors or otherwise for the safety of licensees and other Building occupants and protection of
property in the Building. Licensees and anyone else who desires to enter the Building after normal working hours will be required to sign in upon entry and sign out upon leaving, giving their location during their stay and their time of arrival and departure.

 

15. Evacuation. NTEC and/or Building management has the right to evacuate the Building in the event of emergency or catastrophe.

 

16. Window Coverings. No awnings or other projections shall be attached to the outside walls of the Building. Licensees
shall not install any window shades, screens, drapes, covers, or other materials on or at any window in the Premises without NTEC's prior written consent. Licensees shall ensure that all blinds are closed on all windows in the Premises while

 

 

14

 

 

they are exposed to the direct rays of the sun. If NTEC and/or Building management shall elect to install any energy saving film on the windows of the Premises or to install energy saving windows in place of the present windows, Licensee shall cooperate with the reasonable requirements of NTEC and/or Building management in connection with
such installation and permit NTEC and/or Building management to have access to the Premises at reasonable times during business hours to perform such work.

 

17. Damage to Common Areas. The cost of repairing any damage to the public portions of the Building or the public facilities
or to any facilities used in common with other licensees or Building occupants caused by Licensee shall be paid by Licensee. Licensee shall carry out Licensee's repair, maintenance, alterations and improvements in the Premises only during times agreed to in advance by NTEC and in a manner which will not interfere with the rights of other licensees or occupants in the Building.

 

18. No Lodging. The Building and/or Premises shall not be used or permitted to be used for residential, lodging, or sleeping
purposes or for the storage of personal effects or property not required for business purposes.

 

19. Carpet Protection. In those portions of the Building or Premises where carpet has been provided directly or indirectly
by NTEC, Licensee shall at its own expense install and maintain pads to protect the carpet under all furniture having casters other than carpet casters.

 

20. Control of Soliciting. NTEC and Building management reserves the right to restrict or prohibit canvassing, soliciting
or peddling in the Building.

 

21. Food Service. Only persons approved from time to time by NTEC and Building management may prepare, solicit orders
for, sell, serve or distribute foods or beverages in the Building, or use the elevators, corridors or common areas for any such purpose. Except with NTEC's prior written consent and in accordance with arrangements approved by NTEC, Licensee shall not permit on Lir^n^e«JVpreiriTses^theTrse of equipTnerrrtbriiisp^risirig
food^or beverages or for the preparation, solicitation of orders for, sale, serving or distribution of food or beverages. Licensee shall not obtain or accept for use in its premises ice, drinking water, food, beverage, towel, barbering, floor polishing, cleaning or other similar services from any persons reasonably prohibited in writing from furnishing such services. Such services shall be furnished only at such hours, and under such reasonable regulations, as may be fixed by NTEC from time to time.

 

22. Additional Locks and Keys. Additional locks or bolts of any kind which shall not be operable by the master key system
for the Building and Premises shall not be placed upon any of the doors or windows by Licensee, nor shall any changes be made in locks or the mechanism thereof which shall make such locks inoperable by the master key system. Additional keys for Licensee's premises and toilet rooms shall be procured only from NTEC who may make a reasonable charge therefor. Licensee shall, upon the termination of its license, turn over to NTEC all keys to stores, offices and toilet rooms, either furnished to, or otherwise procured
by Licensee, and in the event of the loss of any keys furnished by NTEC, Licensee shall pay to NTEC the cost thereof.

 

 

15

 

 

23. Inspection of Items. NTEC and/or Building management reserves the right to inspect all objects and matter which violate
any of these Rules and Regulations. NTEC may require any person leaving the Building with any package or other object or matter to submit a pass, listing such package or object or matter. The establishment and enlargement of such requirement shall not impose any responsibility on NTEC for the protection of Licensee against the removal of property from the premises of Licensee. NTEC shall in no way be liable to Licensee for damages or loss arising from the admission, exclusion or ejection of any person to or from
the Premises or the Building under the provisions of these Rules and Regulations.

 

24. Prohibition Uses. Licensee shall not occupy or permit any portion of its premises to be occupied as an office for
the possession, storage, manufacture, or sale of liquor, narcotics, illegal drugs, tobacco in any form, or as a barber, beauty or manicure shop, or as a school. Licensee shall not use its premises or any part thereof for manufacturing, or the sale at retail or auction of merchandise, goods or property of any kind.

 

25. Odors. Licensee shall not cause or permit any unusual or objectionable odors to emanate from its premises, which would
annoy other licensees or Building occupants or create a public or private nuisance. No cooking shall be done in the premises of Licensee except as is expressly permitted in Licensee's License Agreement.

 

26. Utility Use by Janitors. NTEC and/or Building management, their contractors, and their respective employees, shall
have the right to use, without charge therefor, all light, power and water in the premises of Licensee while cleaning or making repairs or alterations in the premises of Licensee.

 

27. Hand Trucks. Hand trucks not equipped with rubber tires and side guards shall not be used within the Building.

 

28. Requests by Licensee. The requirements of Licensees will be attended to only upon application to NTEC. Employees of
NTEC shall not perform any work or do anything outside of their regular duties, unless under special instructions from NTEC.

 

29. Misuse of Building Systems. No acids, vapors or other materials shall be discharged or permitted to be discharged
into the waste lines, vents or flues of the Building which may damage them. The water and wash closets and other plumbing fixtures in or serving any licensee's premises shall not be used for any purpose other than the purposes for which they were designed or constructed, and no sweepings, rubbish, rags, acids or other foreign substances shall be deposited therein. Licensee shall not use water fixtures for any purpose for which they are not intended nor shall water be wasted by tampering with such fixtures. All
damages resulting from any misuse of the fixtures shall be borne by Licensee causing same.

 

30. No Smoking. No smoking is permitted in any portion of the Building within thirty feet of any entrance to the Building,
or in any portion of the Premises.

--

  

16

  

 

 

 

31.     Modification of Rules. NTEC and/or Building management reserves the right to rescind, alter or waive any of these Rules and Regulations and to make such other and further Rules and Regulations as in their judgment shall from time to time be
needed for the safety, protection, care and cleanliness of the Building and its common areas, the operation thereof, the preservation of good order therein, and the protection and comfort of its occupants, which Rules and Regulations when made and notice thereof given to Licensee shall be binding upon such Licensee in like manner as if originally herein prescribed. In the event of any conflict, inconsistency, or other difference between the terms and provisions of these Rules and Regulations, as now or hereafter
in effect, and the terms and provisions of any license now or hereafter in effect between NTEC and Licensee, the terms and provisions of the License Agreement shall prevail and control.

 

 

 

 

 

 

  

17

  

 

EXHIBIT D

 

EXIT AND GRADUATION CRITERIA

 

1.   Criteria for Graduation

 

The Licensee shall be a candidate for graduation after achieving one or more of the following benchmarks for graduation:

 

	    • 	
Licensee has experienced significant revenue growth and/or profitability and/or received significant investment capital allowing Licensee to continue its operation without further assistance from NTEC.

 

	    • 	
Licensee employs 15 or more employees to work at the incubator facility.

 

	    • 	
Licensee's need for rental space equals or exceeds 2,500 square feet,

 

	    • 	
Licensee is acquired by another company.

 

	    • 	
Licensee, if a corporation, makes a public offering of its stock.

 

	    • 	Licensee no longer needs the services provided by NTEC (as determined by NTEC).

 

2.     Criteria for Continuation (reviewed on an annual basis)

 

Licensee shall be a candidate for continuation if the following criteria are met:

 

	 • 	Innovative, technology-based product or service. Examples of acceptable businesses include but are not limited to software, computer or peripheral hardware, telecommunications, Internet or web-based products or concepts, multimedia, or any other technology products or services which are focused in the medical device and healthcare related IT industries. NTEC does not accept
business models that consist primarily of government contracting and prefers companies that either possess or are developing some form of proprietary technology

 

The beginning of a sound management and/or product development team.

 

NTEC can help licensees build complete managerial teams, but a core group of dedicate and technically capable individuals is desirable.

 

	• 	
Sufficient capital. NTEC prefers that the company possess sufficient capital, through personal or other seed funding avenues, to carry forward the proposed business plan for at least a four-month period.

 

	• 	
A product which is less than 24 months from market. NTEC is in the business of assisting commercial enterprises.

 

	• 	
Realistic business plan projecting significant revenues and/or employment of local citizens within the first five years of operation.

 

	• 	
A desire to leverage the services offered by NTEC. NTEC is not merely a facility which houses companies, but rather a group of professionals and a network of industry experts dedicated to supporting the success of the companies working with NTEC. NTEC recruits only companies that posses a
real need for the services provided by the incubator and are willing to accept and act on the counsel and direction provided by NTEC.

 

3.   Criteria for Exit or Discontinuation in NTEC Program

 

Licensee shall be a candidate for discontinuation in the NTEC program if one or more of the following conditions exist:

--

  

18

  

 

 

	• 	
The controlling ownership interest in Licensee has changed since its admission or re-admission in NTEC's incubator program.

 

	• 	
60% or more of the Licensee's revenues (in the last 12 months or projected for the current year) are derived from consulting by Licensee. 

 

	• 	
Licensee has been in NTEC's incubator program for three years. 

 

	• 	
Licensee fails to meet the criteria in (1) or (2) above.

 

	• 	
Licensee is in default of, and does not cure said violation, the License and/or Service Agreement(s).

 

Exit Criteria

 

	• 	
Occupancy will generally last for a 3-year term, with an optional 4th year with the approval of the Board of Directors.

 

	• 	
Extensions beyond four (4) years will be solely at the discretion of the Board of Directors for 6-month increments with a maximum of four (4) extensions.

 

	• 	
In certain situations a Company may exit NTEC prior to its license termination date.

 

	• 	
Failure to meet the terms of the License and Service Agreements, to accept professional mentoring and/or to achieve agreed upon milestones can result in an early termination of a company's License Agreement.

 

	• 	
Exit interview with incubator management.

 

	• 	Company agrees for a period of three (3) years after graduation to provide baseline financial, sales and employment information.

 

--

  

19

  

 

EXHIBIT E

 

NEITHER THIS WARRANT NOR ANY SECURITIES ON EXERCISE HEREOF HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION UNDER SUCH ACT AND APPLICABLE LAWS, OR THE AVAILABILITY OF
AN EXEMPTION FROM SUCH REGISTRATION, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT LEGALLY REQUIRED.

 

STOCK PURCHASE WARRANT

 

This Stock Purchase Warrant (this "Warrant"), dated April 8, 2004, is issued to NTEC for Technology, Inc., a Texas non-profit corporation, or its registered assigns (the "Holder"), by OxySure Systems, Inc., a Delaware
( C )_ corporation (the "Company").

1.          Purchase of Shares. Subject to the terms and conditions hereinafter setnforth, the Holder is entitled, upon surrender of this Warrant
at the principal office of theb Company (or at such other place as the Company shall notify the holder hereof in writing), to purchase from the Company _1,406,000____fully paid and non-assessable shares of
Common Stock, par value $_.0001_ per share (the "Common Stoctf'), of the Company (as adjusted pursuant to Section 7 hereof, the "Shares") for the purchase price specified in Section 2 below.

 

2. Purchase Price. The purchase price for the Shares is $__.0001_ per
share. Such price shall be subject to adjustment pursuant to Section 7 hereof (such price, as adjusted from time to time, is herein referred to as the "Warrant Price").

 

3. Exercise Period. This Warrant is exercisable in whole or in part at any time from the date hereof through April 7,
2014.

 

4. Method of Exercise. While this Warrant remains outstanding and exercisable in accordance with Section
3 above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by:

(a) surrender of this Warrant, together with a duly executed copy of the form of Exercise Notice attached hereto, to the Secretary of the Company at its principal offices, and the payment
to the Company of an amount equal to the aggregate purchase price for the number of Shares being purchased, which shall be a whole number of shares; or

 

(b) if the Common Stock is publicly traded as of such date, the instruction to retain that whole number of Shares having a value equal to the aggregate exercise price of the Shares as
to which this Warrant is being exercised and to issue to the Holder the remainder of such Shares computed using the following formula:

 

 

20

 

 

X=    Y(A-B) 

A

 

Where:

X =    the number of shares of Common Stock to be issued to the Holder.

Y=     the number of shares of Common Stock as to which this Warrant is being exercised.

 

A =    the fair market value of one share of Common Stock. B =    the Warrant Price. As used herein, the "fair market value of one share of Common Stock" shall mean:

 

(1) Except in the circumstances described in clause (2) hereof, the price per share of the Common Stock determined in good faith by the Board of Directors of the Company; or

 

(2) If such exercise is in conjunction with a merger, acquisition or other consolidation pursuant to which the Company is not the surviving entity, the value received by the holders
of the Common Stock pursuant to such transaction for each share.

5. Certificates for Shares; Partial Exercise of Warrants.

 

(a) Upon the exercise of the purchase rights evidenced by this Warrant, one or more certificates for the number of Shares so purchased shall be issued as soon as practicable thereafter,
and in any event within thirty (30) days of the delivery of the Exercise Notice.

 

(b) If this Warrant is surrendered for partial exercise, the Company shall execute and deliver to the Holder of the Warrant, without charge to the Holder, a new Warrant exercisable for
an aggregate number of shares of Common Stock equal to the unexercised portion of the surrendered Warrant.

6. Reservation of Shares. The Company covenants that it will at all times keep available such number of authorized shares of its Common Stock, free from all  preemptive
rights with respect thereto, which will be sufficient to permit the exercise of this Warrant for the full number of Shares specified herein. The Company further covenants that such Shares, when issued pursuant to the exercise of this Warrant, will be duly and validly
issued, fully paid and non-assessable and free from all taxes, liens and charges with respect to the issuance thereof.

 

 

21

 

 

7. Adjustment of Warrant Price and Number of Shares. The number and kind of securities purchasable upon exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time as follows:

 

(a) Stock Dividends, Subdivisions, Combinations and Other Issuances. If the Company shall at any time prior to the expiration
of this Warrant subdivide its Common Stock, by stock split or otherwise, combine its Common Stock or issue additional shares of its Common Stock as a dividend with respect to any shares of its Common Stock, the number of Shares issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend and proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the purchase price payable per share, but the aggregate
purchase price payable for the total number of Shares purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 7(a) shall become effective at the close of business on the date the subdivision or combination becomes effective or as of the record date of such dividend, or, in the event that no record date is fixed, upon the making of such dividend.

 

(b) Reclassification, Reorganization, Merger, Sale or Consolidation. In the event of any reclassification, capital reorganization
or other change in the Common Stock of the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 7(a) above) or in the event of a consolidation or merger of the Company with or into, or the sale of all or substantially all of the properties and assets of the Company, to any person, and in connection therewith consideration is payable to holders of Common Stock in cash, securities or other property,
then as a condition of such reclassification, reorganization or change, consolidation, merger or sale, lawful provision shall be made, and duly executed documents evidencing the same shall be delivered to the Holder, so that the Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant immediately prior to such event, the kind and amount of cash, securities or other property receivable in connection with
such reclassification, reorganization or change, consolidation, merger or sale, by a holder of the same number of shares of Common Stock as were exercisable by the Holder immediately prior to such reclassification, reorganization or change, consolidation, merger or sale. In any such case, appropriate provisions shall be made with respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any cash, securities or property deliverable upon exercise
hereof. Notwithstanding the foregoing, (i) if the Company merges or consolidates with, or sells all or substantially all of its property and assets to, any other person, and consideration is payable to holders of Common Stock in exchange for their Common Stock in connection with such merger, consolidation or sale which consists solely of cash, or (ii) in the event of the dissolution, liquidation or winding up of the Company, then the Holder shall be entitled to receive distributions on the date of such event
on an equal basis with holders of Common Stock as if this Warrant had been exercised immediately prior to such event, less the Warrant Price. Upon receipt of such payment, if any, the rights of the Holder shall terminate and cease, and this Warrant shall expire. In case of any such merger, consolidation or sale of

 

 

22

 

 

assets, the surviving or acquiring person and, in the event of any dissolution, liquidation or winding up of the Company, the Company shall promptly, after receipt of this surrendered Warrant, make payment by delivering a check in such amount as is appropriate (or, in the case of consideration other than cash, such other consideration as is
appropriate) to such person as it may be directed in writing by the Holder surrendering this Warrant.

 

(c)  Certain Distributions. In case the Company shall fix a record date for the making of a dividend or distribution of cash, securities or property to all holders of Common Stock (excluding any dividends or distributions referred to in Sections
7(a) or 7(b) above), the number of Shares purchasable upon an exercise of this Warrant after such record date shall be adjusted to equal the product obtained by multiplying the number of Shares purchasable upon an exercise of this Warrant immediately prior to such record date by a fraction, the numerator of which shall be the Warrant Price immediately prior to such distribution, and the denominator of which shall be the Warrant Price immediately
prior to such distribution, less the fair market value per Share, as determined by the Holder, of the cash, securities or property so distributed. Such adjustment shall be made successively whenever any such distribution is made and shall become effective on the effective date of distribution.

 

8. Pre-Exercise Rights. Prior to exercise of this Warrant, the Holder shall not be entitled to any rights of a shareholder
with respect to the Shares, including without limitation, the right to vote such Shares, receive preemptive rights or be notified of shareholder meetings, and the Holder shall not be entitled to any notice or other communication concerning the business or affairs of the Company.

 

9. Restricted Securities. The Holder understands that this Warrant and the Shares purchasable hereunder constitute "restricted
securities" under the federal securities laws inasmuch as they are being, or will be, acquired from the Company in transactions not involving a public offering and accordingly may not, under such laws and applicable regulations, be resold or transferred without registration under the Securities Act of 1933, as amended, or an applicable exemption from registration. The Holder further acknowledges that the Shares and any other securities issued upon exercise of this Warrant shall bear a legend substantially in
the form of the legend appearing on the face hereof.

 

10. Certification of Investment Purpose. Unless a current registration statement under the Securities Act of 1933, as
amended, shall be in effect with respect to the securities to be issued upon exercise of this Warrant, the Holder hereof, by accepting this Warrant, covenants and agrees that, at the time of exercise hereof, the Holder will deliver to the Company a written certification that the securities acquired by the Holder are acquired for investments purposes only and that such securities are not acquired with a view to, or for sale in connection with, any distribution thereof.

 

 

23

 

 

11. Successors and Assigns. The terms and provisions of this Warrant shall inure to the benefit of, and be binding upon,
the Company and the Holder and their respective successors and assigns.

 

12. Governing Law. This Warrant shall be governed by the laws of the State of Texas, excluding the conflicts of laws provisions
thereof.

 

IN WITNESS WHEREOF, the undersigned hereby agrees to the terms hereof effective as of April 8, 2004.

 

COMPANY:

 

OxySure Systems, Inc.______________

 

 

 

--

  

24

  

 

EXERCISE NOTICE

 

 

 

Dated:_____________________,_________         

 

The undersigned hereby irrevocably elects to exercise the Stock Purchase Warrant, dated __________________, 2003, issued by______________, a ____________________________corporation
(the  "Company'"), to the undersigned to the extent of purchasing shares of Common Stock and hereby makes payment of $_____________________ in payment of the aggregate Warrant Price of such Shares.

          COMPANY:                     

__________________________________________________

 

By:________________________________________________

 

Name: __________________________________________

 

Title:__________________________________________

 

 

25

 

 

SURVEY LOG 

Office No. 128

 

 

	Contents/Description	Notes
	Desk	Good Shape
	Credenza	Nick - Minor
	Black Executive Chair	Good Shape - New
	2 Black Side Chairs	New
	Silver Trash can	New
	Aslcatel Telephone	New
	2 Artificial Plants	Good
	 	 
	 	 
	
Additional Remarks: 

 

Desk, credenza and artifical plants are property  of Organ Transport Services.   

 

Please initial your acceptance of the above terms. 

 

 

	 Date: 4/8/2004	 

 

 

 

26

 

 

EXHIBIT H

 

KEY AGREEMENT

 

NTEC hereby agrees to the issuance of the following keys, and Licensee acknowledges by its receipt: 1) that Licensee accepts the keys listed below for the areas designated in NTEC's premises; 2) that if duplicate keys are necessary they will be made at Licensee's expense and given only to employees or principals of Licensee; 3) that all employees
and principals of Licensee will ensure that designated entrance doors are secure when leaving at any other time than the established hours; and that (4) upon termination of this License Agreement, all original keys in additional to any duplicate keys will be returned to NTEC.

 

 

 

	Area:	 	Quantity:  	 	Key Number(s):
	Suite #109	 	2	 	50:36047 (J. Ross), 60:18782 (P. Ross)
	Outside Entry	 	3	 	1394 242899-2 (J. Ross), 01393 242899-2 (P. Ross),  1395 242899-2 (M. McDonald) 
	Office #128	 	3	 	AB10
	Authorized Personnel:	 	3	 	
Julian Ross 

Pearl Ross 

Michael McDonald

	 	 	 	 	 
	 	 	 	 	 

 

 

 

	 	LICENSOR:

NTEC FOR TECHNOLOGY, INC.

	 	
 

	 	 
	 	 
	 	
LICENSEE:

 

OXYSURE SYSTEMS, INC. 

	 	
 

 

  

27

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