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A.
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The Lender and the Company entered into an agreement on March 6, 2011 (the “Credit Agreement”) whereby the Lender agreed to lend to the Company up to $2,500,000 for the purpose of funding the payments to be made under a contemplated agreement with a sales and marketing agent in connection with the commercialization of the Company’s Health e-Connect compliance marketing system.
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B.
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On June 1, 2011, the Company entered into an Agreement with Mantra Health Solutions Inc. (the “Mantra Agreement”) whereby Mantra agreed to act as the sales and marketing agent for the Company and thereafter the Company drew down amounts under the Credit Agreement, which included amounts paid to Mantra under the Mantra Agreement;
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C.
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On September 15, 2011, the Mantra Agreement was cancelled and the Company proposed to conduct its sales and marketing activities using its own sales team; and
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D.
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The Company and the Lender have agreed to amend the Credit Agreement to provide that the undrawn proceeds of the loan may be used for the Company’s general corporate purposes, including funding the costs of sales and marketing activities.
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1.
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The provisions of subsection 4(a) of the Credit Agreement are hereby deleted and the following substituted therefore:
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2.
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Except as amended by this Agreement, all other terms and conditions of the Credit Agreement shall remain in force and unaltered.
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SIDNEY CHAN
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ALR TECHNOLOGIES INC.
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SIDNEY CHAN
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Per:
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LAWRENCE WEINSTEIN 10/24/11
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Name:
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Lawrence Weinstein
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Title:
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President
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