Document:

EX-4.(b)

 Exhibit (4)(b) 

 
 

 
 Constance annuity enrollment contingent form deferred [First Jefferson Centre | 222 South First Street, Suite 600 | Louisville, KY
40202] [ 1.]Coverage plan Core CorePlus CorePlusX] [ 2.]Primary Certificate Owner/Covered Person If the Primary Certificate Owner is a non-natural person/custodian, information in this section is for the
Covered Person and Section 4 must be completed for the Certificate Owner. Type of Owner: Individual Non-Natural1 Custodial1 ] Complete legal name (first, middle initial, last) Gender Male Female
Residential address2 Mailing address Social Security number Date of birth (mm/dd/yyyy) Phone number Mobile phone number Citizenship: U.S. citizen Resident alien (Country of citizenship): Non-Resident alien
(Country of citizenship): [ 3.] Joint Certificate Owner/Covered Person (if applicable) This is optional. A Joint Certificate Owner must be the spouse of the primary certificate owner and attained age 80 or younger. A Joint Certificate Owner is not
available for non-natural owned or Qualified accounts. Complete legal name (first, middle initial, last) Gender Male Female Residential address2 Mailing address SSN Date of birth (mm/dd/yyyy) Phone number
Mobile phone number Citizenship: U.S. citizen Resident alien (Country of citizenship): Non-Resident alien (Country of citizenship): [ 4.] Certificate Owner (for
non-natural owner)1 Complete legal name (first, middle initial, last) SSN Residential address2 Date of formation Mailing address Citizenship: Will the Contract be held within a qualified plan? U.S. entity Non-U.S. entity (Country of formation): Yes No 1 A certification form must be submitted if a non-natural person is named as the Certificate Owner. 2 A residential address must
be completed and cannot be a P.O. Box. 3 Social Security number (SSN)/Tax Identification number (TIN) 33443Y Page 1 of 3 5-21 

 

 
 [ 5.] Covered asset information Type of covered asset: Non-qualified Qualified—type of
account Financial institution name Financial institution account number Name on account (first, middle initial, last) Tax ID on account Mailing address Investment profile or strategy: A B C Strategy Fee option No deduction Deduction of advisor fees
[ 6.] Electronic document delivery By providing an email address, I consent to initiate the process of receiving electronic documents and notices applicable to the eligible Policy/Policies accessed through the Company website. These include, but are
not limited to, prospectuses, prospectus supplements, periodic reports or statements, privacy notices and other notices and documentation in electronic format when available instead of receiving paper copies of these documents by U.S. mail. I
consent to receive in electronic format any documents added in the future. Important information concerning electronic document delivery: • There is no charge for electronic delivery, although an internet provider may charge for internet
access. • You are confirming you have access to a computer with internet capabilities and an active email account to receive information electronically. • This Electronic document delivery applies only to eligible Policies accessible
through our websites. • After subscribing to Electronic document delivery, Midland National or their administrator Retire One will send an email to confirm the provided email address is correct. If Midland or their administrator Retire One is
not able to confirm an email address or has reasonable suspicion that an email address is incorrect, Midland National or their administrator RetireOne will not be able to activate the subscription for electronic delivery, in which case paper copy
documents will be sent. • Email filters must be updated which may prevent email notifications from Midland National or their administrator RetireOne tobe received. • Not all Contract documentation and notifications may currently be
available in electronic format. • Paper copies of the information may be requested at any time for no charge. • For jointly owned Policies both owners are consenting to have information sent to the email address listed below. • If the
email address changes after the subscription process, notification must be sent to Midland National or their administrator. • Electronic delivery will be cancelled if emails are returned undeliverable. • This consent will remain in effect
until revoked. Please call (877) 575-2742 or visit the Company website if you would like to revoke your consent, wish to receive a paper copy of the information above, or need to update your email address.
Email address: Electronic delivery document notifications will be provided to only one email address. Any email provided above will override any existing email address, if applicable. [ 7.] Replacement information All questions in this section must
be answered. No Yes Did the Representative/Insurance Producer present and leave the applicant sales material? No Yes Do you have any existing life insurance Policies or annuity Contracts? No Yes Will this annuity replace or change any existing life
insurance Policies or annuity Contracts? If yes—Company: 33443Y Page 2 of 3 5-21 

 

 
 [ 8.] Fraud and disclosure statements For Applicants in AL—Any person who knowingly presents a false or fraudulent claim for
payment of a loss or benefit or who knowingly presents false information in an application for insurance is guilty of a crime and may be subject to restitution fines or confinement in prison, or any combination thereof. For Applicants in AR—Any
person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. For
Applicants in CA 65 and Older—I have been advised that the sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity or other asset used to fund the purchase of a life or annuity product may involve tax
consequences, early withdrawal penalties, or other costs or penalties associated with the sale or liquidation of the asset. I have also been advised to obtain the advice of independent legal or financial counsel before selling any assets and before
purchasing the life or annuity product. For Applicants in DC—WARNING: It is a crime to provide false or misleading information to an insurer for the purpose of defrauding the insurer or any other person. Penalties include imprisonment and/or
fines. In addition, an insurer may deny insurance benefits if false information materially related to a claim was provided by the applicant. For all other states—Any person who knowingly presents a false statement in an application for
insurance may be guilty of a criminal offense and subject to penalties under state law. [ 9.] Replacement information • Unless I have notified Midland National or their administrator of a community or marital—property interest in this
certificate, Midland National will rely on good faith belief no such interest exists and will assume no responsibility for inquiry. • To the best of my knowledge and belief, all of my statements and answers on this form are correct and true.
• This enrollment form is subject to acceptance by Midland National. • I understand federal law requires all financial institutions to obtain customer information, including the name, residential address, date of birth, Social Security
number or Taxpayer Identification number and any other information necessary to sufficiently identify each customer. I understand failure to provide this information could result in the annuity certificate not being issued, delayed or unprocessed
transactions, or annuity certificate termination. I have read the Fraud and Disclosure Statements listed in this enrollment form. Signed at (city, state) Date (mm/dd/yyyy) Owner/Covered Person’s signature Joint Owner/Covered Person’s
signature Non-natural signature (Authorized Representative/Trustee) Non-natural signature (Authorized Representative/Trustee) [ 10.] Agent/Representative information All
questions in this section must be answered. No Yes Did you present and leave the applicant insurer-approved sales material? No Yes Does the applicant have any existing life insurance Policies or annuity Contracts? No Yes Do you have any reason to
believe the annuity applied for will replace or change any existing annuity insurance? I certify that I have truly and accurately recorded on the application the information that was provided to me by the applicant. Agent/Representative full name
(first, middle initial, last) ID number Phone number Email address (optional) Signature 33443Y Page 3 of 3 5-21celz_ex41.htm

EXHIBIT 4.1
   
 	 Original Issue Date: August 11, 2021  
	  
	  $_______

    
 ORIGINAL ISSUE DISCOUNT SENIOR NOTE
DUE FEBRUARY 11, 2022
  
 THIS ORIGINAL ISSUE DISCOUNT SENIOR NOTE is one of a series of duly authorized and validly issued Original Issue Senior Notes of Creative Medical Technology Holdings, Inc., a Nevada corporation (the “Company”), having its principal place of business at 3008 W Lupine Avenue, Phoenix, AZ 85029, designated as its Original Issue Discount Senior Note due February 11, 2022 (this Note, the “Note” and, collectively with the other Notes of such series, the “Notes”).
  
 FOR VALUE RECEIVED, the Company promises to pay to _________________ or its registered assigns (the “Holder”), or shall have paid pursuant to the terms hereunder, the principal sum of $____________ on February 11, 2022 (the “Maturity Date”) or such earlier date as this Note is required or permitted to be repaid as provided hereunder. This Note is subject to the following additional provisions:
  
 Section 1. Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Note, (a) capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the following meanings:
  
 “Alternate Consideration” shall have the meaning set forth in Section 5(e).
  
 “Bankruptcy Event” means any of the following events: (a) the Company or any Subsidiary thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement, (c) the Company or any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d) the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Significant Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Company or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts, (g) the Company or any Significant Subsidiary thereof admits in writing that it is generally unable to pay its debts as they become due, (h) the Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.
   
 	 
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 “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee” or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York are generally open for use by customers on such day.
  
 “Change of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 33% of the voting securities of the Company (other than by means of exercise of the Warrants issued together with the Notes), (b) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own less than 66% of the aggregate voting power of the Company or the successor entity of such transaction, (c) the Company (and all of its Subsidiaries, taken as a whole) sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately prior to such transaction own less than 66% of the aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a three year period of more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who are members on the date hereof), or (e) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.
  
 “Event of Default” shall have the meaning set forth in Section 8(a).
  
 “Mandatory Default Amount” means the sum of (a) 120% of the outstanding principal amount of this Note and (b) all other amounts, costs, expenses and liquidated damages due in respect of this Note.
  
 “New York Courts” shall have the meaning set forth in Section 6(d).
   
 	 
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 “Original Issue Date” means the date of the first issuance of the Notes, regardless of any transfers of any Note and regardless of the number of instruments which may be issued to evidence such Notes.
  
 “Permitted Indebtedness” means (a) the indebtedness evidenced by the Notes, and (b) lease obligations and purchase money indebtedness of up to $100,000, in the aggregate, incurred in connection with the acquisition of capital assets and lease obligations with respect to newly acquired or leased assets.
  
 “Permitted Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company) have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the Company’s business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other similar Liens arising in the ordinary course of the Company’s business, and which (x) do not individually or in the aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien, (c) Liens incurred in connection with Permitted Indebtedness under clauses (a) and (b).
  
 “Purchase Agreement” means the Securities Purchase Agreement, dated as of August 9, 2021 among the Company and the original Holders, as amended, modified or supplemented from time to time in accordance with its terms.
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
  
 “Subsidiary Guarantee” means the Subsidiary Guarantee, dated the date of the Purchase Agreement, by each Subsidiary in favor of the Holders.
  
 “Transaction Documents” means the Purchase Agreement, this Note, the Subsidiary Guarantee, and all documents executed in connection therewith and herewith.
  
 “Warrants” means, collectively, the Common Stock purchase warrants delivered to the Holders on the Original Issue Date pursuant to the Purchase Agreement.
  
 “Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants.
    
 	 
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 Section 2. Registration of Transfers and Exchanges. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.
  
 Section 3. Negative Covenants. As long as any portion of this Note remains outstanding, unless the holders of at least 67% in principal amount of the then outstanding Notes shall have otherwise given prior written consent, the Company shall not, and shall not permit any of the Subsidiaries to, directly or indirectly:
  
 a) other than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;
  
 b) other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;
  
 c) amend its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially and adversely affects any rights of the Holder;
  
 d) repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock or Common Stock Equivalents other than as to the Warrant Shares as permitted or required under the Transaction Documents; 
  
 e) repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Notes if on a pro-rata basis, provided that such payments shall not be permitted if, at such time, or after giving effect to such payment, any Event of Default exist or occur;
  
 f) declare or pay cash dividends or distributions on any equity securities of the Company;
  
 g) enter into any transaction with any Affiliate of the Company which would be required to be disclosed in any public filing with the Commission, unless such transaction is made on commercially reasonable terms and on an arm’s-length basis and expressly approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise required for board approval), other than for (i) payment of salary or consulting fees for services rendered in amounts not to exceed the greater of (x) the amounts provided for under agreements in place as of the date of the Purchase Agreement, or (y) the applicable amounts set forth on Schedule I hereto, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock grants and stock option agreements under any stock option plan of the Company; or
   
 	 
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 h) enter into any agreement with respect to any of the foregoing.
  
 In the event more than one grace, cure or notice period is applicable to an Event of Default, then the shortest grace, cure or notice period shall be applicable thereto.
  
 Section 4. Affirmative Covenants.
   
 a) Mandatory Redemption. 
  
 	  
	 (i) 
	 Occurrence of Mandatory Redemption. Until the closing of the Public Offering, as defined in the Purchase Agreement, the Company shall use at least 25% of the net proceeds of any offering of its securities, including the Public Offering (any such offering, a “Subsequent Offering” and any such net proceeds from such Subsequent Offering, the “Net Proceeds”) to redeem this Note in full, including the Principal Amount and all other amounts due and payable pursuant to this Note, and all other then outstanding Notes (the “Mandatory Redemption”); provided, however, that if the Net Proceeds of the Subsequent Offering are less than the amount required to repay all of the Notes in full, the Company’s repayment obligation under this Section 4(a)(i) shall be limited to the amount of such Net Proceeds. 

	  
	  
	  

	  
	 (ii)
	 Mandatory Notices. With respect to the Mandatory Redemption, the Company shall deliver a written notice to all, but not less than all, of the holders of Notes (the “Mandatory Redemption Notice” and the date such notice is delivered to all such holders is referred to as the “Mandatory Redemption Notice Date”) (a) stating the date on which the Mandatory Redemption shall occur (the “Mandatory Redemption Date”), which date shall be the date of the consummation of the applicable Subsequent Offering, (b) stating the amount of Net Proceeds with respect to the applicable Subsequent Offering and (c) contain a certification from the Chief Executive Officer of the Company that the Company has simultaneously taken the same action with respect to all of the Notes. The Mandatory Redemption Notice shall be delivered no later than the first (1st) Trading Day following the announcement of the pricing of the applicable Subsequent Offering, and the Company shall make a public announcement containing the information set forth in the Mandatory Redemption Notice on or before the Mandatory Redemption Notice Date to the extent that the notice contains any, or constitutes, material, non-public information.

   
 	 
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	 (iii) 
	 Mandatory Redemption Procedure. The payment of cash pursuant to the Mandatory Redemption shall be payable in full on the Mandatory Redemption Date. If any portion of the payment pursuant to a Mandatory Redemption shall not be paid by the Company by the applicable due date, interest shall accrue thereon at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law until such amount is paid in full. Notwithstanding anything to the contrary in this Section 4(a), the Net Proceeds shall be applied ratably among the Holders of Note.

     
 b) Reverse Stock Split. No later than 90 days following the Original Issue Date of this Note, the Company shall take all actions to effect a reverse stock split using a ratio of 1:100 or greater, including without limitation seeking shareholder approval, as required, and amending the charter documents of the Company.
  
 Section 5. Events of Default. 
  
 a) “Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):
  
 	  
	 (i)
	 any default in the payment of the principal amount of any Note or (B) liquidated damages and other amounts owing to a Holder on any Note, as and when the same shall become due and payable (whether on the Maturity Date or by acceleration or otherwise) which default, solely in the case of a default under clause (B) above, is not cured within 3 Trading Days;

	  
	  
	  

	  
	 (ii)
	 the Company shall fail to observe or perform any other covenant or agreement contained in the Notes or in any Transaction Document, which failure is not cured, if possible to cure, within the earlier to occur of (A) 5 Trading Days after notice of such failure sent by the Holder or by any other Holder to the Company and (B) 10 Trading Days after the Company has become or should have become aware of such failure;

	  
	  
	  

	  
	 (iii)
	 a default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument) shall occur under (A) any of the Transaction Documents or (B) any other material agreement, lease, document or instrument to which the Company or any Subsidiary is obligated (and not covered by clause (vi) below);

	  
	  
	  

	  
	 (iv)
	 any representation or warranty made in this Note, any other Transaction Documents, any written statement pursuant hereto or thereto or any other report, financial statement or certificate made or delivered to the Holder or any other Holder shall be untrue or incorrect in any material respect as of the date when made or deemed made;

   
 	 
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	 (v)
	 the Company or any Subsidiary shall be subject to a Bankruptcy Event;

	  
	  
	  

	  
	 (vi)
	 the Company or any Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced, any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation greater than $50,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become due and payable;

	  
	  
	  

	  
	 (vii)
	 the Company (and all of its Subsidiaries, taken as a whole) shall be a party to any Change of Control Transaction or Fundamental Transaction or shall agree to sell or dispose of all or in excess of 33% of its assets in one transaction or a series of related transactions (whether or not such sale would constitute a Change of Control Transaction)

	  
	  
	  

	  
	 (viii)
	 any dissolution, liquidation, winding up or cessation of operations by the Company, of a substantial portion of its business;

	  
	  
	  

	  
	 (ix)
	 the failure by the Company or any Subsidiary to maintain any material intellectual property rights, personal, real property, equipment or leases or other assets which are necessary to conduct its business (whether now or in the future) and such breach is not cured within twenty (20) days of such occurrence;

	  
	  
	  

	  
	 (x)
	 the occurrence of an Event of Default under any Other Note; or

	  
	  
	  

	  
	 (xi)
	 any monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary or any of their respective property or other assets for more than $25,000, and such judgment, writ or similar final process shall remain unvacated, unbonded or unstayed for a period of 45 calendar days.

      
 	 
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 b) Remedies Upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Note, plus accrued but unpaid liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the Holder’s election, immediately due and payable in cash at the Mandatory Default Amount, except that upon an Event of Default pursuant to Section 5(a)(v), the Company shall immediately pay the Mandatory Default Amount to the Holder without the requirement for any notice or demand or other action by the Holder or any other Person; provided, that the Holder may, in its sole discretion, waive such right to receive payment upon an Event of Default pursuant to Section 5(a)(v), in whole or in part, and any such waiver shall not affect any other rights of the Holder hereunder, including any other rights in respect to any such Event of Default or any other amount, as applicable. Commencing 5 days after the occurrence of any Event of Default that results in the eventual acceleration of this Note, this Note shall accrue interest at an interest rate equal to the lesser of 15% per annum or the maximum rate permitted under applicable law. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Note to or as directed by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by the Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the Note until such time, if any, as the Holder receives full payment pursuant to this Section 8(b). No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.
  
 Section 6. Miscellaneous. 
  
 a) Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder shall be in writing and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized overnight courier service, addressed to the Company, at the address set forth above, or such other facsimile number, email address, or address as the Company may specify for such purposes by notice to the Holder delivered in accordance with this Section 6(a). Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number, email address or address of the Holder appearing on the books of the Company, or if no such facsimile number or email attachment or address appears on the books of the Company, at the principal place of business of such Holder, as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment to the email address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment to the email address set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.
   
 	 
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 b) Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and liquidated damages, as applicable, on this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company. This Note ranks pari passu with all other Notes now or hereafter issued under the terms set forth herein. 
  
 c) Lost or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.
  
 d) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding. This Note shall be deemed an unconditional obligation of the Company for the payment of money and, without limitation to any other remedies of Holder, may be enforced against the Company by summary proceeding pursuant to New York Civil Procedure Law and Rule Section 3213 or any similar rule or statute in the jurisdiction where enforcement is sought. 
   
 	 
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 e) Waiver. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other occasion. Any waiver by the Company or the Holder must be in writing. 
  
 f) Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.
  
 g) Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Note.
   
 	 
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 h) Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.
  
 i) Headings. The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit or affect any of the provisions hereof.
  
 j) Amendment. This Note may be amended, and any provisions hereof may be amended, by written consent of the Company and holders representing 67% or more in principal amount of Notes; provided, that any proposed amendment that disproportionately, materially and adversely affects the rights and obligations of a Holder relative to the comparative rights and obligations of other holders of Notes shall require the prior written consent of such adversely affected Holder.
  
 Section 7. Disclosure. Upon receipt or delivery by the Company of any notice in accordance with the terms of this Note, unless the Company has in good faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries, the Company shall within two (2) Business Days after such receipt or delivery publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice contains material, non-public information relating to the Company or its Subsidiaries, the Company so shall indicate to the Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed to presume that all matters relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries.
  
 *********************
      
 (Signature Page Follows)
   
 	 
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 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.
   
 	 	 CREATIVE MEDICAL TECHNOLOGY HOLDINGS, INC.
	
	 	 	 	 
		By:		
	  
	 Name: 
	 Timothy Warbington
	 
	 	Title:	 Chief Executive Officer
	 
	  
	  
	   
	  

	 	Address: 	3008 W Lupine Avenue
Phoenix, AZ 85029	 

 	  
	 Email address: timwarbington@yahoo.com 
	  

    
 	 
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 SCHEDULE I
PERMITTED COMPENSATION
  
 	 Name
	  
	 Title 
	  
	 Annual 
 Base 
 Salary
	  
	  
	 Annual Cash 
 Bonus (% of 
 Base Salary)
	  
	  
	 Annual Stock 
 Grant (% of 
 Base Salary)
	  

	 Timothy Warbington
	  
	 CEO
	  
	$	330,000	  
	  
	  
	30	%	  
	  
	30	%
	 Donald Dickerson
	  
	 CFO
	  
	$	300,000	  
	  
	  
	30	%	  
	  
	30	%
	 Amit Patel
	  
	 Director/Consultant
	  
	$	240,000	  
	  
	  
	30	%	  
	  
	30	%
	 Thomas Ichim
	  
	 Director/Consultant
	  
	$	120,000	  
	  
	  
	30	%	  
	  
	30	%

    
 	 
	13

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