Document:

Exhibit 10.4

 

Execution Copy

 

GUARANTY

 

This Guaranty (“Agreement”) is
made and executed this      day of March, 2010 by Corgenix Incorporated,
a corporation, duly incorporated and validly existing pursuant to the laws of Delaware
(“Guarantor”), having its principal place of business at 11575 Main Street,
Broomfield, CO, in favor of FAUNUS GROUP
INTERNATIONAL, INC., a Delaware corporation (“FGI”),
having its principal place of business at 80 Broad Street, 22nd Floor, New
York, New York 10004.

 

BACKGROUND

 

A.                                   FGI intends to
establish financing arrangements with, extend credit to and/or purchase
receivables from Corgenix UK Limited, (“Client”)
pursuant to the terms and conditions of the certain Receivable Finance
Agreement dated as of the date hereof between Client and FGI (as may hereafter
be amended, supplemented, restated or replaced from time to time, the “Corgenix UK Agreement”).

 

B.                                     In order to
induce FGI to enter into the financing arrangements with and make loans and
extend credit to the Client, Guarantor undertakes and agrees as set forth
below.

 

1.                                       Obligations Guaranteed. 
To induce FGI to enter into the Corgenix UK Agreement and consider
extending or continuing to extend credit or purchase receivables from time to
time to Client thereunder, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Guarantor, intending
to be legally bound hereby, absolutely and unconditionally guarantees and
becomes surety for the payment and performance when due (at maturity, upon
acceleration, or otherwise) of all of the debts and obligations of Client of
every kind or nature, whether joint or several, due or to become due, absolute
or contingent, now existing or hereafter arising, and whether principal,
interest, fees, costs, expenses or otherwise, and arising under the Corgenix UK
Agreement or otherwise (including without limitation any interest and/or
expenses accruing following the commencement of any insolvency, receivership,
reorganization or bankruptcy case or proceeding relating to Client, whether or
not a claim for post-petition interest and/or expenses is allowed in such case
or proceeding) (collectively, the “Obligations”).  Guarantor shall also pay or reimburse FGI on
demand for all costs and expenses, including without limitation attorneys’
fees, incurred by FGI at any time to enforce, protect, preserve, or defend FGI’s
rights hereunder and with respect to any property securing this Agreement.  All payments hereunder shall be made in
lawful money of the United States, in immediately available funds. Unless
otherwise defined herein, all capitalized terms shall have the respective
meanings given to such terms in the Corgenix UK Agreement.

 

2.                                       Representations and Warranties. 
Guarantor represents and warrants that:

 

(a)                                  Guarantor’s execution and performance of
this Agreement shall not (i) violate or result in a default or breach
(immediately or with the passage of time) under any contract, agreement or
instrument to which Guarantor is a party, or by which Guarantor or any asset of
Guarantor is bound, (ii) violate or result in a default or breach under
any order, decree, award, injunction, judgment, law, regulation or rule, (iii) cause
or result in the imposition or 

 

 

creation
of any lien or other encumbrance upon any property or asset of Guarantor, or (iv) violate
or result in a breach of the certificate of incorporation or bylaws of
Guarantor.

 

(b)                                 Guarantor has the full power and
authority to enter into and perform under this Agreement, which has been
authorized by all necessary corporate action on behalf of Guarantor.

 

(c)                                  No consent, license or approval of, or
filing or registration with, any governmental authority is necessary for the
execution and performance hereof by Guarantor.

 

(d)                                 This Agreement constitutes the valid and
binding obligation of Guarantor enforceable in accordance with its terms.

 

(e)                                  This Agreement promotes and furthers the
business and interests of Guarantor and the creation of the obligations
hereunder will result in direct financial benefit to Guarantor.

 

3.                                       Guarantor Acknowledgements.

 

(a)                                  Guarantor hereby waives notice of (i) acceptance
of this Agreement, (ii) the existence or incurring from time to time of
any Obligations guaranteed hereunder, (iii) nonpayment, the existence of
any Termination Event, the making of demand, or the taking of any action by
FGI, under the Corgenix UK Agreement, and (iv) default and demand
hereunder.

 

(b)                                 Guarantor acknowledges that Guarantor (i) has
examined or had the opportunity to examine the Corgenix UK Agreement and
related agreements and (ii) waives any defense which may exist resulting
from Guarantor’s failure to receive or examine at any time the Corgenix UK
Agreement or any amendments, supplements, restatements or replacements
therefor.

 

(c)                                  Guarantor acknowledges that it shall not
do anything to impede or interfere in any manner with the normal collection and
payment of the Approved Debts assigned and sold to FGI.

 

(d)                                 Guarantor acknowledges that in entering
into this Agreement Guarantor is not relying upon any statement,
representation, warranty or opinion of any kind from FGI as to the present or
future financial condition, performance, assets, liabilities or prospects of
Client or as to any other matter.

 

4.                                       FGI Actions. 
Guarantor hereby consents and agrees that FGI may at any time or from
time to time in FGI’s discretion (a) extend or change the time of payment
and/or change the manner, place or terms of payment of any or all Obligations, (b) amend,
supplement, restate or replace the Corgenix UK Agreement or any related
agreements, (c) renew or extend any financing now or hereafter reflected
by the Corgenix UK Agreement or the maturity thereof or increase (without limit
of any kind and whether related or unrelated) or decrease loans and extensions
of credit to Client, (d) modify the terms and conditions under which
loans, extensions of credit or purchases of receivables may be made to Client, (e) settle,
compromise or grant releases for liabilities of Client, and/or any other Person
or Persons liable with Guarantor for, any 

 

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Obligations, (f) exchange, compromise, release or
surrender, or subordinate or release any lien on, any property (including any
collections therefrom or proceeds thereof) of Client or any other Person or
Persons now or hereafter securing any of the Obligations, and (g) apply
any and all payments and proceeds of any property of any Person securing any or
all of the Obligations received by FGI at any time against the Obligations in
any order as FGI may determine; all of the foregoing in such manner and upon
such terms as FGI may see fit, and without notice to or further consent from
Guarantor, who hereby agrees to be and shall remain bound upon this Agreement
notwithstanding any such action on FGI’s part.

 

5.                                       Scope of Guaranty. 
The Agreement is an agreement of suretyship and a guaranty of payment
and not of collection.  The liability of
Guarantor hereunder is absolute, primary, unlimited and unconditional and shall
not be reduced, impaired or affected in any way by reason of (a) any
failure to obtain, retain or preserve, or the lack of prior enforcement of, any
rights against any Person or Persons liable for the Obligations (including
Client and Guarantor) or in any property, (b) the invalidity,
unenforceability or voidability of any Obligations or any liens or rights in
any property pledged by any Person or Persons, (c) any delay in making
demand upon Client or any delay in enforcing, or any failure to enforce, any
rights against Client or any other Person or Persons liable for any or all of
the Obligations or in any property pledged by any Person or Persons, even if
such rights are thereby lost, (d) any failure, neglect or omission on FGI’s
part to obtain, perfect or continue any lien upon, protect, exercise rights
against, or realize on, any property of Client, Guarantor or any other party
securing the Obligations, (e) the existence or nonexistence of any
defenses which may be available to the Client with respect to the Obligations, (f) the
granting of any waiver or forbearance at any time and for any period with
respect to any performance by Client or any Termination Event(s) under the
Corgenix UK Agreement, (g) the commencement of any bankruptcy,
reorganization, liquidation, dissolution or receivership proceeding or case
filed by or against Client or any Guarantor or (h) any other fact, event,
condition or omission which may give rise to a suretyship defense. Guarantor
promises and undertakes to make all payments hereunder free and clear of any
deduction, offset, defense, claim or counterclaim of any kind.

 

6.                                       Reinstatement. 
If any or all payments or proceeds of property securing any or all of
the Obligations made from time to time to FGI with respect to any obligation
hereby guaranteed are at any time recovered from, or repaid by, FGI in whole or
in part in any bankruptcy, reorganization, receivership, insolvency or similar
case or proceeding instituted by or against Client, this Agreement shall
continue to be fully applicable to (or, as the case may be, reinstated to be
applicable to) such obligation to the same extent as if the recovered or repaid
payment(s) or proceeds had never been originally paid to FGI.

 

7.                                       Cumulative Remedies. 
All rights and remedies hereunder and under the Corgenix UK Agreement,
and related agreements, are cumulative and not alternative, and FGI may proceed
in any order from time to time against Client, Guarantor and/or any other
Person or Persons liable for any or all of the Obligations and their respective
assets.  FGI shall not have any
obligation to proceed at any time or in any manner against, or exhaust any or
all of FGI’s rights against, Client or any other Person or Persons liable for
any or all of the Obligations prior to proceeding against Guarantor hereunder.

 

8.                                       Security Interest. As additional security for the
Obligations, Guarantor hereby 

 

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grants to FGI a security interest in all of Guarantor’s
right, title and interest in and to the following assets, wherever located and
whether now or hereafter owned or acquired: (a) all Accounts, (b) Chattel
Paper, (c) Commercial Tort Claims, (d) Deposit Accounts, (e) Documents,
(f) Equipment, (g) General Intangibles, (h) Goods (including but
not limited to all files, correspondence, computer programs, tapes, disks and
related data processing software which contain informa­tion identifying or
pertaining to any of the Collateral or any Account Debtor or showing the
amounts thereof or payments thereon or otherwise necessary or helpful in the
realization thereon or the collection thereof, (i) Inventory, (j) Investments,
(k) Investment Property, (l) Letters of Credit and Letter of Credit
rights, (m) all Supporting Obligations and (n) all cash and non-cash
proceed of the foregoing (including insurance proceeds). Upon the occurrence of
a Termination Event under Corgenix UK Agreement or any breach or default by
Guarantor under this Agreement (each an “Event of Default”), FGI shall have all
the rights of a secured party under applicable law, and more specifically under
the Uniform Commercial Code (in effect in the State of New York) and shall have
all the rights and remedies set forth in the Corgenix UK Agreement. In addition
and without limitation, FGI may, without notice to or demand upon the Guarantor
and take possession of the Collateral, and for that purpose FGI may enter upon
any premises on which the Collateral may be situated and remove the same
therefrom; require Guarantor to assemble all or any part of the Collateral at
such location or locations within the jurisdiction(s) of Guarantor’s
principal office(s) or at such other locations as FGI may reasonably
designate. Unless the Collateral is perishable or threatens to decline speedily
in value or is of a type customarily sold on a recognized market, the FGI shall
give to Guarantor at least five (5) Business Days prior written notice of
the time and place of any public sale of Collateral or of the time after, which
any private sale or any other intended disposition is to be made. The Guarantor
hereby acknowledges that five (5) Business Days prior written notice of
such sale or sales shall be reasonable notice. 
In addition, Guarantor waives any and all rights that it may have to a
judicial hearing in advance of the enforcement of any of FGI’s rights
hereunder, including, without limitation, its right following an Event of
Default to take immediate possession of the Collateral and to exercise its
rights with respect thereto. In addition, FGI shall have and may exercise any
or all other rights and remedies it may have available at law, in equity, or
otherwise. All of FGI’s rights and remedies, whether evidenced by this
Agreement, the Corgenix UK Agreement or any other writing, shall be cumulative
and may be exercised singularly or concurrently. Election by FGI to pursue any
remedy shall not exclude pursuit of any other remedy, and an election to make
expenditures or to take action to perform an obligation of Guarantor under this
Agreement, after Guarantor’s failure to perform, shall not affect FGI’s right
to declare a default and to exercise its remedies.

 

9.                                       Subrogation. 
Any and all rights of any nature of Guarantor to subrogation,
reimbursement or indemnity and any right of Guarantor to recourse to any assets
or property of, or payment from, Client or any other Person or Persons liable
for any or all of the Obligations as a result of any payments made or to be
made hereunder for any reason shall be unconditionally subordinated to all of
FGI’s rights under the Corgenix UK Agreement and Guarantor shall not at any
time exercise any of such rights unless and until all of the Obligations have
been unconditionally paid in full.  Any
payments received by Guarantor in violation of this Section 9 shall be
held in trust for and immediately remitted to FGI.

 

10.                                 FGI Records. 
FGI’s books and records of any and all of the Obligations, absent
manifest error, shall be prima facie evidence against Guarantor of the
indebtedness owing or to 

 

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become owing to FGI hereunder.

 

11.                                 Continuing Surety. 
This Agreement shall constitute a continuing surety obligation with
respect to all Obligations from time to time incurred or arising and shall
continue in effect until all Obligations are indefeasibly paid and satisfied
and the liability of Guarantor under this Agreement may not be revoked or
terminated.

 

12.                                 Setoff.  Guarantor
agrees that FGI shall have a right of setoff against any and all property of
Guarantor now or at any time in FGI’s possession, including without limitation
deposit accounts, and the proceeds thereof, as security for the obligations of
Guarantor hereunder.

 

13.                                 Acceleration. 
If a Termination Event occurs and is continuing under the Corgenix UK
Agreement, then all of Guarantor’s liabilities of every kind or nature to FGI
hereunder shall, at FGI’s option, become immediately due and payable and FGI
may at any time and from time to time, at FGI’s option (regardless of whether
the liability of Client or any other Person or Persons liable for any or all of
the Obligations has matured or may then be enforced), take any and/or all
actions and enforce all rights and remedies available hereunder or under
applicable law to collect Guarantor’s liabilities hereunder.

 

14.                                 Enforcement Timing. 
Failure or delay in exercising any right or remedy against Guarantor
hereunder shall not be deemed a waiver thereof or preclude the exercise of any
other right or remedy hereunder.  No
waiver of any breach of any provision of this Agreement shall be construed as a
waiver of any subsequent breach or of any other provision.

 

15.                                 Confession.

 

(a)                                  GUARANTOR HEREBY
IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY(S) OR THE CLERK OF ANY
COURT OF RECORD IN THE STATE OF NEW YORK, OR ELSEWHERE, FOLLOWING THE OCCURRENCE
OF A TERMINATION EVENT UNDER THE CORGENIX UK AGREEMENT, TO APPEAR FOR GUARANTOR
IN ANY SUCH COURT, WITH OR WITHOUT DECLARATION FILED, AS OF ANY TERM OR TIME,
AND CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR IN FGI’S FAVOR FOR ALL
OBLIGATIONS DUE OR TO BECOME DUE BY GUARANTOR HEREUNDER, WITH COSTS OF SUIT,
RELEASE OF ERRORS AND FIFTEEN PERCENT (15%) OF SUCH SUMS ADDED AS REASONABLE
ATTORNEYS’ FEES; AND FOR THE PURPOSE HEREOF A COPY OF THIS AGREEMENT SHALL BE
SUFFICIENT WARRANTY. SUCH AUTHORITY AND POWER SHALL NOT BE EXHAUSTED BY ANY
EXERCISE THEREOF AND JUDGMENT MAY BE CONFESSED FROM TIME TO TIME HEREUNDER
AS FGI MAY DETERMINE.

 

(b)                                 GUARANTOR, BEING FULLY
AWARE OF THE RIGHT TO NOTICE AND A HEARING CONCERNING THE VALIDITY OF ANY AND
ALL CLAIMS THAT MAY BE ASSERTED AGAINST GUARANTOR BY FGI BEFORE A JUDGMENT
CAN BE ENTERED HEREUNDER OR BEFORE EXECUTION MAY BE LEVIED ON SUCH
JUDGMENT AGAINST ANY AND ALL PROPERTY OF 

 

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GUARANTOR, HEREBY KNOWINGLY,
VOLUNTARILY AND UNCONDITIONALLY WAIVES THESE RIGHTS AND AGREES AND CONSENTS TO
JUDGMENT BEING ENTERED BY CONFESSION IN ACCORDANCE WITH THE TERMS HEREOF AND
EXECUTION BEING LEVIED ON SUCH JUDGMENT AGAINST ANY AND ALL PROPERTY OF
GUARANTOR, IN EACH CASE WITHOUT FIRST GIVING NOTICE AND THE OPPORTUNITY TO BE
HEARD ON THE VALIDITY OF THE CLAIM OR CLAIMS UPON WHICH SUCH JUDGMENT IS
ENTERED.

 

16.                                 Successors and Assigns. 
This Agreement shall (a) be legally binding upon Guarantor, and
Guarantor’s successors and assigns, provided that
Guarantor’s obligations hereunder may not be delegated or assigned without FGI’s
prior written consent and (b) benefit any and all of FGI’s successors and
assigns.  FGI may assign its rights under
this Agreement without notice to or consent from Guarantor.

 

17.                                 Entire Agreement. 
This Agreement and the Corgenix UK Agreement embody the whole agreement
and understanding of the parties hereto relative to the subject matter
hereof.  No modification or waiver of any
provision hereof shall be enforceable unless approved by FGI in writing.

 

18.                                 Governing Law, Submission to Jurisdiction
and Jury Trial.  THIS AGREEMENT, AND ALL MATTERS ARISING
HEREUNDER OR RELATING HERETO,   SHALL IN ALL RESPECTS BE INTERPRETED,
CONSTRUED AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK.  GUARANTOR IRREVOCABLY KNOWINGLY AND
VOLUNTARILY (I) SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSES OF ANY LITIGATION OR PROCEEDING HEREUNDER
OR CONCERNING THE TERMS HEREOF AND (II)  WAIVES THE RIGHT TO A JURY TRIAL
WITH RESPECT TO ANY LITIGATION, CLAIMS OR PROCEEDING HEREUNDER OR CONCERNING
THE TERMS HEREOF OR OTHERWISE IN CONNECTION WITH GUARANTOR’S DEALINGS WITH FGI.

 

19.                                 Notices.

 

(a)                                  In any action or proceeding brought by
FGI to enforce the terms hereof, Guarantor waives personal service of the
summons, complaint, and any motion or other process, and agrees that notice
thereof may be served (i) in person, (ii) by registered or certified
mail, return receipt requested, or (iii) by nationally recognized
overnight courier (in the case of (i) above, on the date of delivery; in
the case of (ii) above, three (3) days after deposit in the U.S.
Mail; and in the case of (iii) above, one (1) day after delivery to
the courier).  Service may be made at the
address of Guarantor set forth in the Preamble hereto or such other address at
which Guarantor is then located.

 

(b)                                 Any and all notices which may be given to
Guarantor by FGI hereunder shall be sent to Guarantor at the address of
Guarantor set forth in the Preamble hereto (or such other address at which
Guarantor is then located) and shall be deemed given to and received by 

 

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Guarantor if sent by facsimile transmission or if sent
in the manner provided for service of process in Section 19(a) above.  Notices sent by facsimile shall be deemed
received on the date sent.  Notices
otherwise sent shall be deemed received on the applicable date(s) provided
for receipt of service of process under Section 19(a) above.

 

20.                                 Maximum Liability. 
To the extent that applicable law otherwise would render the obligations
of Guarantor hereunder invalid or unenforceable, Guarantor shall nevertheless
remain liable hereunder; provided however
that Guarantor’s obligations shall be limited to the maximum amount which does
not result in such invalidity or unenforceability.  Notwithstanding the foregoing, Guarantor’s
obligations hereunder shall be presumptively valid and enforceable to their
fullest extent in accordance with the terms of this Agreement, as if this Section 19
were not a part of this Agreement.

 

21.                                 Severability. 
The invalidity or unenforceability of any provision hereof shall not
affect the remaining provisions which shall remain in full force and effect.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

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THIS GUARANTY is dated the date and year first above written.

 

 

	
   

  	
  CORGENIX
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[Signature page to Guaranty]

 

S-1Exhibit 10.5

 

Execution Copy

 

Intercreditor Agreement

 

This Intercreditor Agreement is made and entered into between Summit
Financial Resources, L.P., a Hawaii limited partnership (“Summit”), and
Faunus Group International, Inc., a Delaware corporation (“FGI”),
and is acknowledged and consented to by CORGENIX MEDICAL CORPORATION, a Nevada
corporation, and CORGENIX, INC., a Delaware corporation (collectively, and
jointly and severally, “US Client”) and CORGENIX UK LTD. (“UK Client”).

 

RECITALS

 

1.                                       Summit is currently providing certain
financing to US Client (the “Summit Financing”) and has been granted a
security interest in all personal property assets of US Client.

 

2.                                       FGI is entering into a financing
arrangement with UK Client (the “FGI Financing”).  In connection with the FGI Financing, FGI
will be granted a security interest in all personal property assets of UK
Client and US Client.

 

3.                                       Summit and FGI
desire to enter into this Intercreditor Agreement in order to (i) agree to
and confirm the relative rights and payment of their respective indebtedness
and (ii) agree to certain other rights, priorities, and interests.

 

AGREEMENT

 

For good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, Summit and FGI hereby agree as follows:

 

1.                                       Definitions. 
Terms used in the singular shall have the same meaning when used in the
plural and vice versa.  In addition to
the terms defined above, as used herein, the term:

 

a.                                       “Default Rights and Remedies”
means any and all rights and remedies granted in, arising from, or relating to
any agreement, instrument, or document and any and all rights and remedies now
or hereafter existing by statute, at law, or in equity, which may be exercised
only upon the occurrence of a breach or event of default.

 

b.                                      “Encumbrance” means any and all
security interests, liens, mortgages, deeds of trust, assignments, and any
other right, title or interest in, to, or on any property of US Client, and/or
UK Client and/or any guarantor (whether obtained by agreement or by judicial
process), including real property, personal property, intellectual property,
and intangible property.

 

c.                                       “FGI
Collateral” means any and all property of UK Client securing the FGI
Financing, wherever located, now owned or hereafter acquired, presently
existing or created in the future, including personal property, intellectual
property, and intangible property.

 

 

d.                                      “Summit
Collateral” means any and all property of US Client securing the Summit
Financing, wherever located, now owned or hereafter acquired, presently
existing or created in the future, including personal property, intellectual
property, and intangible property.

 

2.                                       Consent to Loans.  Summit
hereby consents to US Client and UK Client granting to FGI a security interest
in all of US Client’s and UK Client’s personal property assets and to entering
into the agreements evidencing the FGI Financing.  Summit waives any provision in any agreement
between Summit and US Client and/or UK Client, if any, which prohibits,
restricts, or limits the right of US Client and/or UK Client to grant to FGI a
security interest in all of US Client’s and UK Client’s personal property
assets and to enter into the agreements evidencing the FGI Financing.

 

3.                                       Priority of Encumbrances. 
Irrespective of the time, order, manner, or method of creation,
attachment or perfection of the Encumbrances granted to Summit or FGI, the
time, place or manner of the filing of their respective financing statements or
other method of perfection, the time, place or manner of recording of any
instrument, whether Summit or FGI or any bailee or agent thereof holds
possession of any or all of the property or assets of UK Client and US Client,
the dating, execution or delivery of any agreement, documents or instrument
granting Summit or FGI the Encumbrance, the giving or failure to give notice of
the acquisition or expected acquisition of any purchase money security interest
or other Encumbrance, and any provision of the Uniform Commercial Code or any
other applicable statute or common law to the contrary:

 

a.                                       Any and all Encumbrances in favor of
Summit in or on any Summit Collateral,
now existing or hereafter created, shall have priority over any and all
Encumbrances in favor of FGI in or on any Summit Collateral, now existing or hereafter created.  FGI hereby subordinates any and all
Encumbrances in favor of FGI in or on any Summit Collateral, now existing or hereafter created, to any and
all Encumbrances in favor of Summit in or on any Summit Collateral, now existing or hereafter created.  In the event that FGI shall knowingly
receive any proceeds of the Summit Collateral or possession of any Summit
Collateral, it shall receive and hold the same in trust, as trustee, for the
benefit of Summit and shall immediately deliver the same to Summit (together
with any endorsement or assignment, as the case may be, where reasonably
necessary).

 

b.                                      Summit hereby agrees and acknowledges
that it shall not at any time obtain any Encumbrance in favor of Summit in or
on any FGI Collateral.  In the event that Summit
shall knowingly receive any proceeds of the FGI Collateral or possession of any
FGI Collateral, it shall receive and hold the same in trust, as trustee, for
the benefit of FGI and shall immediately deliver the same to FGI (together with
any endorsement or assignment, as the case may be, where reasonably necessary).

 

4.                                       Exercise of Default Rights and Remedies.

 

a.                                       FGI agrees that it will not exercise any
Default Rights and Remedies against US Client under the FGI Financing,
including any Default Rights and Remedies against any of the Summit Collateral, so long as any amount is
outstanding and unpaid on the Summit Financing, without the prior written
consent of Summit.  The foregoing
shall not limit or 

 

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otherwise restrict FGI
from exercising any Default Rights and Remedies under the FGI Financing against
UK Client, the FGI Collateral or against any collateral other than the Summit
Collateral that secures the obligations owing under or otherwise related to the
FGI Financing.

 

b.                                      Summit agrees that it will not exercise
any Default Rights and Remedies against UK Client or any of the FGI Collateral.  The foregoing shall not limit or otherwise
restrict Summit from exercising any Default Rights and Remedies under the
Summit Financing against US Client, the Summit Collateral or against any
collateral other than the FGI Collateral that secures the obligations owing
under or otherwise related to the Summit Financing.

 

5.                                       No Waiver of Other Rights.  This
Intercreditor Agreement is intended solely for the purpose of defining the
relative rights of Summit and FGI and nothing contained herein is intended to
nor shall impair the obligations of either US Client or UK Client, any guarantor,
or any other obligors, to pay Summit or FGI, as the case may be, the principal
and interest on the Summit Financing and the FGI Financing as and when the same
shall become due and payable in accordance with their terms, subject to the
rights created by this Intercreditor Agreement.

 

6.                                       Nonavoidability and Perfection. 
The subordinations and priorities provided herein are applicable
regardless of whether the Encumbrance to which another Encumbrance is
subordinated is perfected or is voidable for any reason.  FGI acknowledges that Summit may not initially
perfect its security interest in titled motor vehicles and may not do so in the
future.

 

7.                                       Non-Reliance, No Duty to Notify. 
Summit and FGI each expressly acknowledge that, except as expressly
provided in this Intercreditor Agreement, neither they nor any of their
officers, directors, partners, employees, representatives, agents, attorneys or
affiliates, has made any representations or warranties to each other and that
no act by Summit or FGI hereafter taken, including any review of the affairs of
US Client and UK Client, shall be deemed to constitute any representation or
warranty by Summit or FGI.  Summit and FGI
each represent that they have, independently and without reliance upon the
other and based on such documents and information as each has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of US Client
and UK Client and made its own decision to enter into this Intercreditor
Agreement.  Summit and FGI each also
represent that it will, independently and without reliance upon the other and
based on the documents and information as each shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Intercreditor Agreement, and in regard
to the Summit Financing and the FGI Financing, and to make such investigation
as it deems necessary to inform itself as to the business, operations, property,
financial and other condition and creditworthiness of US Client and UK Client.  Neither Summit nor FGI shall have any duty or
responsibility to provide the other with any credit or other information
concerning the business, operations, property, financial and other condition or
creditworthiness of US Client or UK Client that may come into their possession.

 

Neither Summit nor FGI shall have any duty or obligation to notify the
other of any event of default or breach on the Summit Financing or the FGI Financing
nor of any material adverse change affecting the Summit Financing, the FGI
Financing, US Client, UK Client, any guarantor, or any other obligor.  Summit and FGI will attempt to notify each
other of the occurrence of an event of default under the Summit Financing or FGI
Financing but failure to do so shall not 

 

3

 

constitute a breach or default under this
Intercreditor Agreement and no liability shall result from failure to provide
such notice.

 

8.                                       Notices.  All notices
hereunder shall be in writing and shall be sent via nationally recognized
overnight courier.  Notices so sent shall
be deemed received upon delivery to the mailing address stated herein or to
such other address as Summit or FGI may from time to time specify in
writing.  Any notice so addressed and
otherwise delivered shall be deemed given when actually received by the
addressee.

 

Mailing Addresses:

 

Summit:

 

Summit Financial
Resources, L.P.

2455 East Parley’s Way, Suite 200

Salt Lake City, Utah
84109

Attention: Senior
Portfolio Manager

 

FGI:

 

Faunus
Group International, Inc.

80
Broad Street

22nd Floor

New
York, New York 10004

Attention:                           

 

9.                                       Indemnification.  US
Client and UK Client shall jointly and severally indemnify Summit and FGI for
any and all claims and liabilities, and for damages which may be awarded
against or incurred by Summit and/or FGI, and for all reasonable attorneys’
fees, legal expenses, and other out-of-pocket expenses incurred in defending
such claims, arising from or related in any manner to the negotiation,
execution, or performance by Summit and/or FGI of this Intercreditor Agreement
or any of the agreements, documents, obligations, or transactions contemplated
by this Intercreditor Agreement.

 

Summit
and FGI shall have the sole and complete control of the defense of any such
claim involving Summit and FGI respectively. 
Summit and FGI are hereby authorized to settle or otherwise compromise
any such claims as Summit or FGI in good faith determines shall be in its best
interests.

 

10.                                 Binding Effect. 
This Intercreditor Agreement shall apply to and govern all renewals,
amendments, restatements, and replacements of any and all agreements,
instruments, and documents evidencing or relating to the Summit Financing and
the FGI Financing, including any which increase the amount of the financing or
loan, increase the interest rate thereon, and/or extend or modify the payment
terms.  In addition, this
Intercreditor Agreement is binding upon and inures to the benefit of the
successors and assigns of all parties hereto.

 

11.                                 No Agency or Joint Venture. 
Nothing in this Intercreditor Agreement shall be construed to create any
agency relationship between Summit and FGI. 
Neither Summit nor FGI 

 

4

 

shall have any authority
to act for or bind the other.  Nothing in
this Intercreditor Agreement shall be construed to create any joint venture,
partnership, or fiduciary relationship between Summit and FGI.

 

12.                                 Attorney’s Fees in the Event of Default. 
Upon the occurrence of an event of default or breach hereunder, the
non-defaulting party shall be entitled to recover reasonable, actual
out-of-pocket attorneys fees and legal expenses incurred as a result of such
default or breach and in exercising any rights and remedies.

 

13.                                 Jury Waiver. 
THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE ALL RIGHTS TO TRIAL BY JURY
IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM, WHETHER IN CONTRACT OR IN
TORT, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATED TO THIS
INTERCREDITOR AGREEMENT.

 

14.                                 Severability of Invalid Provisions. 
Any provision of this Intercreditor Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction only, be
ineffective only to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

15.                                 Warranty of Signing Representative. 
The representative signing this Intercreditor Agreement on behalf of
Summit and FGI each represents and warrants that he or she has been duly
authorized to execute and deliver this Intercreditor Agreement and that upon
execution and delivery hereof by all parties hereto, this Intercreditor
Agreement will be binding and enforceable in accordance with its terms against
such party for whom such representative has signed.

 

16.                                 Duplicate Originals. 
Two or more duplicate originals of this Intercreditor Agreement may be
signed by the parties, each duplicate of which shall be an original but all of
which together shall constitute one and the same agreement.

 

17.                                 Integrated Agreement and Subsequent
Amendment.  This Intercreditor Agreement constitutes the
entire agreement between Summit and FGI and may not be altered or amended
except by written agreement signed by Summit and FGI.  All other prior and contemporaneous
agreements, arrangements, and understandings between the parties hereto as to
the subject matter hereof are rescinded.

 

[Remainder of Page Intentionally Left Blank]

 

5

 

Dated:  March       ,
2010.

 

 

	
   

  	
  SUMMIT FINANCIAL RESOURCES, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
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  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FAUNUS GROUP INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

Consented and agreed to
as of March       , 2010:

 

CORGENIX
MEDICAL CORPORATION

 

 

	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

 

	
  CORGENIX, INC.

  	
   

  	
  CORGENIX UK LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

6

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