Document:

EXHIBIT 4.20

 

BRIDGE LOAN AGREEMENT

 

July 30, 2012

 

AMERICAN BIO MEDICA CORPORATION

122 Smith Road 

Kinderhook, New York 12106

 

RE: Bridge Loan Agreement

 

Dear Mr. Cipkowski:

 

In reference to the pending offering for
the extension of $750,000 in existing debt (the “Existing Debt”) of American Bio Medica Corporation, a New York corporation
(“ABMC ” or the "Company”) for which the Company has engaged Cantone Research, Inc. (“CRI” or
the “Placement Agent”) to act as the Company’s exclusive Placement Agent (the “Offering”), the purpose
of this letter is to define the terms of a proposed bridge loan (the “Bridge Loan”) from Cantone Asset Management LLC
(“CAM”) to cover any amounts of Existing Debt held by investors who do not wish to extend under the Offering (“Non-Consenting
Holders”), and for working capital purposes, in the amount of $150,000. All terms used in this agreement (the “Agreement”)
and not defined shall have the same meaning as in the placement agent agreement between the Company and CRI of even date (the “Placement
Agreement”).

 

Upon acceptance, (indicated by your signature
below), this Agreement will confirm the terms of the bridge loan between CAM and the Company.

 

1.          The
Bridge Loan.

 

(a)          On
the basis of the representations, warranties and covenants contained in this Agreement, and subject to the terms and conditions
of this Agreement, CAM agrees to provide the Bridge Loan to the Company in an amount of $150,000 and the Company agrees to accept
the Bridge Loan.

 

(b)          CAM
will use the proceeds of the Bridge Loan to directly repay the Non-Consenting Holders, with the balance to be sent to the Company
for working capital purposes.

 

2.            Repayment.

 

(a)          The
Company will repay the Bridge Loan as required under the related promissory note (the “Note”), a form of which is attached
as Exhibit A. The maturity date of the Note will be August 1, 2013 (the “Maturity Date”). The Note will bear simple
annual interest in advance of 15% (“Interest”), all of which shall be considered due and payable in accordance with
the terms of the Note. The Note shall contain all customary terms and conditions, including events of default and remedies upon
default.

 

(b)          In
addition to the Interest, upon the funding of the Bridge Loan, the Company will issue CAM restricted common stock of the Company
equal to 10% of the principal amount of the Note at a value of $0.17 per share (the “Stock Compensation”). Failure
to issue the Stock Compensation shall constitute an event of default under the Note.

 

(c)          The
Parties expect that the Company will repay principal and Interest on the Bridge Loan from the proceeds of a proposed issuance of
up to $2 Million in Company senior debt (the “Subsequent Financing”). Repayment of the Bridge Loan is based on the
terms and conditions of this Agreement and the Note and shall not be affected by the success or lack thereof of any Subsequent
Financing.

 

    	 

    	 

    

 

(d)          Change
in Control Premium. If the Company is involved in a “change in control” (such as a merger or acquisition) at any time
before the Company repays the Bridge Loan in full, the holder of the Note will receive a premium of 30% of the outstanding principal
on the Note.

 

3.           Maturity.
The Company will repay the principal and Interest on the Note on or before the Maturity Date. If the Company successfully completes
the Subsequent Financing in any amount, the Company will repay the Bridge Loan from the Subsequent Financing.

 

4.           Governing
Law; Jurisdiction; Waiver of Jury Trial. This Agreement will be governed as to validity, interpretation, construction, effect and
in all other respects by the internal law of the State of New Jersey. The Company and CAM each (i) agree that any legal suit, action
or proceeding arising out of or relating to this Agreement shall be instituted exclusively in the state courts with jurisdiction
in Monmouth County, New Jersey, or in the United States District Court for the District of New Jersey, (ii) waives any objection
to the venue of any such suit, action or proceeding, and the right to assert that such forum is an inconvenient forum, and (iii)
irrevocably consents to the jurisdiction of the New York State Supreme Court, County of Albany, and the United States District
Court for the Northern District of New York in any such suit, action or proceeding. The Parties hereby expressly waive all rights
to trial by jury in any suit, action or proceeding arising under this Agreement.

 

5. Representations and Warranties.

 

The Company and each of its subsidiaries respectively represent
and warrant that:

 

(a) it has full right, power and authority to enter into this
Agreement and to perform all of its obligations hereunder;

 

(b) this Agreement has been duly authorized and executed and
constitutes a legal, valid and binding agreement of such party enforceable in accordance with its terms; and

 

(c) the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby does not conflict with or result in a breach of (i) such party’s certificate of incorporation
or by-laws or (ii) any agreement to which such party is a party or by which any of its property or assets is bound.

 

6.           Validity.
This Agreement contains the entire agreement between the Parties. No party has made any statement, agreement or representation,
either oral or written, in connection herewith, modifying, adding or changing the terms and conditions herein set forth. No present
or past dealings between the parties shall be permitted to contradict or modify the terms hereof. No modification of this Agreement
shall be binding unless such modification is in writing and signed by the parties hereto. In case any term of this Agreement will
be held invalid, illegal or unenforceable, in whole or in part, the validity of any of the other terms of this Agreement will not
in any way be affected thereby.

 

7.           Counterparts.
This Agreement may be executed in counterparts and each of such counterparts will for all purposes be deemed to be an original,
and such counterparts will together constitute one and the same instrument.

 

8.           Notices.
All notices will be in writing and will be effective when delivered in person or sent via facsimile and confirmed by letter, to
the Party to whom it is addressed at the following addresses or such other address as such Party may advise the other in writing
(copies shall not constitute notice):

 

If to the Company:

 

AMERICAN BIO MEDICA CORPORATION

122 Smith Road

Kinderhook, New York 12106

 

    	 

    	 

    

 

ATTN: Corporate Secretary/Chief Compliance Officer

Telephone: 518-758-8158

Facsimile: 518-758-8171

Email: mdwaterhouse@abmc.com

 

with a copy (which shall not constitute notice) to:

 

NOLAN & HELLER, LLP

39 N. Pearl Street

Albany, New York 12207

ATTN: Richard L. Burstein, Esq.

Telephone: 518-449-3300

Facsimile: 518-432-3123

Email: rburstein@nolanandheller.com

 

To the Placement Agent

 

Cantone Research Inc.

766 Shrewsbury Ave

Tinton Falls, NJ 07724

Telephone: 732-450-3500

Facsimile: 732-450-3520

Attention: Anthony Cantone

 

With a copy (which will not constitute notice) to:

 

Christopher P. Flannery, Esq.

4 Hillman Drive

Suite 104

Chadds Ford, PA 19317

Telephone: 610-361-8016

Facsimile: 610-558-4882

 

Very truly yours,

 

CANTONE RESEARCH, INC.

 

	By: 	/S/ Anthony Cantone	 
	 	     Anthony Cantone, President	 

 

Agreed to and accepted this 30th day of July, 2012

 

AMERICAN BIO MEDICA CORPORATION

 

	By: 	/S/ Melissa A. Waterhouse	 
	 	     Melissa A. Waterhouse	 
	 	     EVP, Chief Compliance Officer	 
	 	     Corporate SecretaryEXHIBIT 4.21

 

NOTE

 

Tinton Falls, New Jersey

 

	$150,000.00	July 31, 2012

 

1.           Obligation.
For value received and intending to be legally bound, AMERICAN BIO MEDICA CORPORATION, a New York corporation ("Maker"),
hereby promises to pay on or before July 31, 2013 (or earlier as determined below) (the “Due Date”) to the order of
CANTONE ASSET MANAGEMENT LLC ("Payee"), the principal sum of ONE-HUNDRED-FIFTY THOUSAND Dollars ($150,000.00), lawful
money of the United States of America together with interest thereon in advance in the amount of fifteen percent (15%) simple interest
(the “Rate”) on the terms and conditions stated in this Note. The principal sum added to the actual interest, in the
total amount of $172,500, is referred to herein as the "Amount Due."

 

a.           The
payment under this Note shall be made in funds immediately available to Payee at its office at 766 Shrewsbury Avenue, Tinton Falls,
NJ 07724, or at such other location as the holder of this Note shall designate. In the event the due date of any payment under
this Note is a Saturday, Sunday or legal holiday in the State of New Jersey, such payment shall be due on the next succeeding date
which is not a Saturday, Sunday or such legal holiday, provided that the principal sum shall continue to accrue interest until
paid.

 

b.           A
single payment of principal and interest in the Amount Due shall be due on the earlier of: (i) the Due Date; or (ii) the closing
of a debt financing by the Maker in an amount of at least $1,000,000. The Amount Due shall be due and payable in a lump sum.

 

2.           Prepayment.
Maker may prepay all or any portion of the Amount Due at any time without penalty.

 

3.           Application
of Payments. All payments on this Note shall be applied first to interest at the Rate and all other sums due hereunder, and the
balance thereof to principal or in such other order as Payee may elect.

 

4.           
Default; Acceleration; Remedies.

 

a.           Should
there occur any Default (as defined below in Section 5(b), then Payee, at its option and without notice to Maker, may declare immediately
due and payable the entire unpaid balance of the Amount Due by Maker hereunder, together with interest accrued thereon at the Rate
after the Due Date to the date of Default and thereafter at a rate of interest equal to the highest rate of interest allowable
under the laws of the State of New Jersey (the "Default Rate"), anything herein to the contrary notwithstanding. Payment
thereof may be enforced and recovered in whole or in part at any time by one or more of the remedies provided Payee in this Note.
If Payee employs counsel to enforce this Note by suit or otherwise, Maker will reimburse Payee for all costs of suit and other
expenses in connection therewith, whether or not suit is actually instituted, together with a reasonable attorney's fee for collection
of Ten Percent (10%) of the total amount then due by Maker to Payee but in no event less than One Thousand Dollars ($1,000.00)
together, to the extent permitted by applicable law, with interest on any judgment obtained by Payee at the Default Rate, including
interest at the Default Rate from and after the date of execution, judicial or foreclosure sale until actual payment is made to
Payee of the full amount due Payee.

 

b.           As
used in this Note, "Default" shall occur immediately upon the happening to or by Maker of any of the following events:

 

(1)         Any
default in the payment when due of the Amount Due on the Due Date, or any other sums due, under this Note, which default is not
cured within ten (10) days after written notice;

 

(2)         Any
default in the performance of any of the provisions of this Note, which is not cured within ten (10) days after Maker receives
written notice of that default from Payee;

 

    	 

    	 

    

 

(3)         Any
default in payment of any other indebtedness of the Maker, which default is not cured within thirty (30) days of the date of said
default;

 

(4)         The
making of any misrepresentation to Payee;

 

(5)         The
calling of a meeting of creditors;

 

(6)         The
appointment of a committee of creditors;

 

(7)         An
assignment or offer of settlement for the benefit of creditors;

 

(8)         The
voluntary or involuntary application for, or appointment of, a receiver, custodian, guardian, trustee, or other personal representative
for Maker or its property;

 

(9)         The
filing of a voluntary or involuntary petition under the Bankruptcy Code or any similar state statute;

 

(10)        The occurrence
of any other act of insolvency (however expressed or indicated);

 

(11)        The issuance
of a warrant of attachment or for distraint, or the notice of tax lien;

 

(12)        An entry
of judgment;

 

(13)        The failure
to pay, withhold, collect or remit any taxes or tax deficiency when assessed or due, provided however, that so long as no event
of Default shall exist and after giving written notice to Payee, Maker may in good faith contest any such tax and permit such tax
to remain unpaid during the period under any such contest;

 

(14)        The general
failure to pay debts and obligations as the same become due and payable.

 

5.           Remedies
Cumulative, Etc.

 

a.           The
remedies of Payee provided in this Note shall be cumulative and concurrent, may be pursued singly, successively, or together at
the sole discretion of Payee, and may be exercised as often as occasion therefor shall occur; and the failure to exercise any such
right or remedy shall in no event be construed as a waiver or release thereof.

 

b.           The
recovery of any judgment by Payee shall not affect in any manner or to any extent any rights, remedies or powers of Payee under
this Note, but such rights, remedies and powers of Payee shall continue unimpaired as before. The exercise by Payee of its rights
and remedies and the entry of any judgment by Payee shall not adversely affect in any way the interest rate payable hereunder on
any amounts due to Payee but interest shall continue to accrue on such amounts at the rates specified herein.

 

c.           Maker
agrees that any action or proceeding against it to enforce this Note may be commenced in the state courts with jurisdiction in
Monmouth County, New Jersey, or in any federal court in with jurisdiction in Monmouth County, New Jersey. Maker also consents to
venue in any federal court having subject matter jurisdiction located in the District of New Jersey. The provisions of this Section
shall not limit or otherwise affect the right of Payee to institute and conduct action in any other appropriate manner, jurisdiction
or court.

 

6.           Additional
Waivers. Maker hereby waives presentment for payment, demand, demand for payment, notice of demand, notice of nonpayment or dishonor,
notice of acceleration, protest and notice of protest of this Note, and all other notices in connection with the delivery, acceptance,
performance, default or enforcement of the payment of the Note. Maker agrees that its liability shall be unconditional without
regard to the liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal,
waiver or modification granted or consented to by Payee. Maker consents to any and all extensions of time, renewals, waivers or
modifications that may be granted by Payee with respect to payment or other provisions of this Note.

 

    	 

    	 

    

 

7.           Costs
and Expenses. Maker shall pay upon demand all reasonable costs and expenses incurred by Payee in the exercise of any of its rights,
remedies or powers under this Note and any amount thereof not paid promptly following demand therefor shall be added to the principal
sum hereunder and shall bear interest at the Default Rate from the date of such demand until paid in full.

 

8.           Severability.
If any provision of this Note is held to be invalid or unenforceable by a court of competent jurisdiction, the other provisions
of this Note shall remain in full force and effect and shall be liberally construed in favor of Payee in order to effectuate the
provisions of this Note.

 

9.           Limitation
of Interest to Maximum Lawful Rate. In no event shall the rate of interest payable hereunder exceed the maximum rate of interest
permitted to be charged by applicable law (including choice of law rules) and any interest paid in excess of the permitted rate
shall be refunded to Maker. Such refund shall be made by application of the excessive amount of interest paid against any sums
outstanding under this Note and shall be applied on such order as Payee may determine. If the excessive amount of interest paid
exceeds the sums outstanding under this Note, the portion exceeding the sums outstanding under this Note shall be refunded in cash
by Payee. Any such crediting or refund shall not cure or waive any default by Maker hereunder. Maker agrees, however, that in determining
whether or not any interest payable under this Note exceeds the highest rate permitted by law, any non principal payment, including
without limitation prepayment fees and late charges, shall be deemed to the extent permitted by law to be an expense, fee, premium
or penalty rather than interest.

 

10.         Limitation
on Payee's Waivers. Payee shall not be deemed, by any act or omission or commission, to have waived any of its rights or remedies
hereunder unless such waiver is in writing and signed by Payee, and then only to the extent specifically set forth in the writing.
A waiver as to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy to a subsequent event.

 

11.         No
Offset. The obligations of Maker under this Note shall not be subject to any abatement or offset as a consequence of any claim,
event or transaction otherwise occurring or arising between Maker, Payee and/or any affiliate of any of them, except as Maker and
Payee may otherwise agree.

 

12.         Applicable
Law. This instrument shall be governed by and construed according to the laws of the State of New Jersey.

 

13.         Captions.
The captions or headings of the paragraphs in this Note are for convenience only and shall not control or affect the meaning or
construction of any of the terms or provisions of the Note.

 

14.        Pronouns.
Pronouns used herein shall be deemed to include the masculine, feminine or neuter, singular or plural, as their contexts may require.
The words "Payee" and "Maker" shall be deemed to include the respective heirs, personal representatives, successors
and assigns of Payee and Maker.

 

15.         Construction.
The language in this Agreement shall be construed as a whole according to its fair meaning, strictly neither for nor against any
party, and without implying a presumption that its terms shall be more strictly construed against one party by reason of the rule
of construction that a document is to be construed more strictly against the person who drafted it.

 

16.         Computation.
The unpaid principal amount of this Note, the unpaid interest accrued thereon, the interest rate or rates applicable to such unpaid
principal amount, the duration of such applicability, and all other Amounts Due owing by Maker to Payee pursuant to this Note shall
at all times be ascertained from the records of Payee, which shall be conclusive absent manifest error.

 

    	 

    	 

    

 

17.         Assignment.
This Note may not be assigned or otherwise transferred by Maker without the prior written consent of Payee.

 

18.         Stamp
Taxes. Maker shall pay the cost of any revenue, tax or other stamps now or hereafter required by the laws of the State of New Jersey
(or any of its political subdivisions) or the United States of America to be affixed to this note, and if any taxes are imposed
under the laws of the State of New Jersey (or any of its political subdivisions) or the United States of America with respect to
evidences of indebtedness, Maker shall pay or reimburse Payee upon demand the amount of such taxes without credit against any indebtedness
evidenced by this Note.

 

19.         Notices.
All notices, requests, waivers, demands and other communications hereunder shall be in writing and shall be deemed to have been
duly given, made and received when hand delivered against receipt, or on the day after it is sent by United States certified or
registered mail, postage prepaid, return receipt requested, by nationally recognized overnight courier service, or by fax, to:

 

If to Maker:

 

AMERICAN BIO MEDICA CORPORATION

122 Smith Road

Kinderhook, New York 12106

ATTN: Corporate Secretary/Chief Compliance Officer

Telephone: 518-758-8158

Facsimile: 518-758-8171

Email: mdwaterhouse@abmc.com

 

If to Payee:

 

Cantone Asset Management LLC

766 Shrewsbury Ave

Tinton Falls, NJ 07724

Telephone: 732-450-3500

Facsimile: 732-450-3520

Attention: Anthony Cantone

 

or such other address as shall be specified from time to time
(in compliance with the requirements of this Section 20 for the giving of notice) by the parties entitled to receive such notices.

 

IN WITNESS WHEREOF, Maker, intending to be legally bound hereby,
has caused this Note to be duly executed the day and year first above written.

 

MAKER:

 

AMERICAN BIO MEDICA CORPORATION

 

	By:	/S/ Melissa A. Waterhouse	 
	 	      Melissa A. Waterhouse	 
	 	      EVP, Chief Compliance Officer	 
	 	      Corporate Secretary

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