Exhibit 10.3
Promissory Note
September 30, 2009
Borrower: CORGENIX MEDICAL CORPORATION and
CORGENIX, INC.
Lender: Summit Financial Resources,
L.P.
Amount: $250,000
Maturity: September 30,
2012
For value received, Borrower
promises to pay to the order of Lender at 2455 East Parley’s
Way, Suite 200, Salt Lake City, Utah 84109, the sum of two
hundred fifty thousand dollars ($250,000) or such other principal
balance as may be outstanding, with interest thereon from the date
hereof until paid, both before and after judgment, at a variable
rate compounding daily and computed on the basis of a three hundred
sixty (360) day year as follows: two and seventy-five tenths
percent (2.75%) per annum above the Prime Rate (hereinafter
defined) from time to time in effect, adjusted as of the date of
any change in the Prime Rate.
This Promissory Note is made in
accordance with the Loan and Security Agreement dated
September 30, 2009, by and between Lender and Borrower (the
“Loan and Security Agreement”), and is secured by the
collateral identified in and contemplated by the Loan and Security
Agreement. Disbursements under this Promissory Note shall be
made only in accordance with the Loan and Security
Agreement.
Principal and interest shall be
payable in thirty-six (36) equal monthly installments, commencing
on October 31, 2009, and on the last day of each month
thereafter until September 30, 2012, at which time all
remaining outstanding principal and interest shall be due and
payable in full; provided, however, that in the event
(i) Borrower receives all or any portion of the Second Loan
Advance (as defined in the Loan and Security Agreement), or
(ii) the Prime Rate changes, the amount of such installment
payments shall be automatically adjusted to provide for
amortization of this loan at the same rate and the same time frame
as originally contemplated by this Promissory Note.
“Prime Rate” means the
Prime Rate as published in the Money Rates section of The Wall
Street Journal. This definition of Prime Rate is to be
strictly interpreted and is not intended to serve any purpose other
than providing an index to determine the variable interest
rate
