EXHIBIT 10.20(a)
AMENDMENT TO FORBEARANCE AGREEMENT
AND PAYMENT OF INTEREST WITH STOCK
CAN-CAL RESOURCES LTD. AND FIRST COLONY MERCHANT AND XXXXXX TRADING LIMITED
January 29, 2002
This Amendment is entered into between Can-Cal Resources Ltd. (the
"Borrower") and First Colony Merchant and Xxxxxx Trading Limited (collectively
the "Lender").
Whereas, the Lender loaned Borrower $300,000 on or about November 23, 2000
under a Loan Agreement, requiring interest to be paid semiannually on May 24 and
November 24 of each year; and
Whereas, the Borrower did not pay the interest due on May 24, 2001 and as a
result, the Lender and the Borrower entered into a Forbearance Agreement on
August 7, 2001, under which the May 24, 2001 interest due of $24,000 was added
to the principal amount of the loan, and said $24,000 was to be paid on or
before November 24, 2001; and
Whereas, as of the date of this Amendment, the Borrower has not paid either
the $24,000 of interest originally due May 24, 2001 but by the Forbearance
Agreement deferred to November 24, 2001, or the $24,000 of interest due November
24, 2001;
The Lender and the Borrower agree:
1. The $48,000 of interest due to be paid by the Borrower to the Lender
on or before November 24, 2001, is by this Amendment signed by
Borrower and Lender, paid in full by the Borrower agreeing to issue
309,677 shares of restricted common stock to the Lender, determined in
the same manner as section 3 b of the Forbearance Agreement: A
purchase price per share of $0.155, being 50% of the lowest trading
price for the Borrower's common stock as published by Yahoo! Finance
Historical Quote during the period from November 23, 2000 through
Friday, December 31, 2001 ($0.31 x 50% = $0.155). The Borrower shall
instruct its stock transfer agent to deliver the stock certificate for
the shares to the Lender, in the name of the Lender or Xxxxxx Trading,
as requested by the Lender, as soon as possible.
2. Except as amended by section 1 above, the Forbearance Agreement, and
the original Loan Agreement, remain in full force and effect.
Signed in Las Vegas, Nevada.
Can-Cal Resources Ltd. First Colony Merchant and
Xxxxxx Trading
/s/ Xxxxx X. Xxxxx /s/ Xxxx X. Xxxxxxx
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Xxxxx X. Xxxxx, Vice President Xxxx X. Xxxxxxx, President
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Print Name, Title and Date Jan 29/02 Print Name, Title and Date
