EXHIBIT 10.20
ADDENDUM TO
SUBORDINATED SECURITY AGREEMENT
This ADDENDUM TO SUBORDINATED SECURITY AGREEMENT is entered into as of
January 22, 1999, by and between CREATIVE MEDICAL DEVELOPMENT, INC. ("Debtor")
and XXXXXXX X. XXXX ("Secured Party").
1 On October 24, 1998, the parties executed a Subordinated Security
Agreement (the "Subordinated Security Agreement").
2 Continued Effectiveness. Except as expressly modified by this
Addendum, all terms, conditions, agreements, and covenants set forth in the
Subordinated Security Agreement, are hereby ratified and confirmed and shall
continue in full force and effect.
3 Defined Terms. Unless otherwise defined herein, capitalized terms
used herein and not otherwise defined herein shall have the meanings ascribed to
them in the Subordinated Security Agreement
4 Amendment of Section 11. Section 11 of the Subordinated Security
Agreement is hereby deleted and replaced with the following:
Equal Priority of Security Interest. Debtor intends to issue Eight Percent
Secured Convertible Subordinated Notes in the aggregate maximum principal
amount of $275,160.00 (including the principal amount of this Secured
Party's Note) to certain parties (such other parties shall be referred to
as "Additional Lenders") on terms substantially similar to the terms
between Secured Party and Debtor. The security interest granted by this
Agreement secures the Liabilities to the Secured Party on an equal, or pari
passu, basis with the security interests granted to the Additional Lenders,
such that the Secured Party's and Additional Lenders' security interests in
the Collateral shall rank equally with each other's security interest in
the Collateral regardless of the date of filing of each party's financing
statement.
IN WITNESS WHEREOF, the parties hereto have executed this Addendum as
of the date first set forth above.
DEBTOR:
CREATIVE MEDICAL DEVELOPMENT, INC
By: /s/ M. Xxxxxxx Xxx Xxxxxx
Title: VP Finance & Treasurer
SECURED PARTY:
/s/Xxxxxxx X. Xxxx
