Exhibit 10.2
Addendum to Financing
Agreement
(Inventory
Financing)
Summit Financial Resources, L.P.
(“Summit”), CORGENIX MEDICAL CORPORATION
(“CMC”), and CORGENIX, INC. (“CORGENIX”),
(CMC and CORGENIX are collectively and jointly and severally
referred to as “Client”) have entered into a Financing
Agreement dated September 30, 2009 (the “Financing
Agreement”). Summit and Client desire to modify the
Financing Agreement as set forth herein and agree as
follows:
1.
Definitions . Except as otherwise expressly provided
herein, terms assigned defined meanings in the Financing Agreement
shall have the same defined meanings in this Addendum. As
used herein, the term:
“Acceptable Inventory”
means Inventory located at Client’s chief executive office
which consists of finished goods that have been approved for their
intended use by the Food and Drug Administration and/or all other
applicable regulatory agencies, that are packaged in unopened
packaging, that do not in any manner constitute private label or
customer specific products, and which are subject to no security
interest, lien, or encumbrance of any nature whatsoever with
priority over the security interest created by the Financing
Agreement and the Loan and Security Agreement, except any liens for
current taxes which are not delinquent; but excluding Inventory
which, in the sole discretion of Summit, is damaged, out-dated,
obsolete, or otherwise unacceptable to Summit.
2.
Inventory Advances . Summit may, in its sole
discretion and without any duty to do so, elect from time to time
to make advances based upon Acceptable Inventory. Advances
based upon Acceptable Inventory shall be made only in accordance
with the below formula, which formula may be changed or modified at
any time in the sole discretion of Summit without the consent or
approval of Client:
Advances based upon Acceptable
Inventory may be made upon request of Client so long as the
aggregate amount of all advances based upon Acceptable Inventory
outstanding and unpaid does not exceed the lesser of (a) Fifty
Percent (50%) of the lower of book value, as determined in
accordance with generally accepted accounting principles, of the
Acceptable Inventory, (b) Four Hundred Fifty Thousand Dollars
($450,000), (c) Fifty Percent (50%) of Client’s
outstanding Acceptable Accounts, and (d) together with the
aggregate amou
