1
April 24, 1995
Winston Resources, Inc.
000 Xxxxx Xxxxxx
Xxx Xxxx, X.X. 10017-3663
Gentlemen:
Notwithstanding anything to the contrary in the Security Agreements - Accounts
Receivable dated April 16, 1992 between FINOVA Capital Corporation formerly
Ambassador Factors Division Fleet Factors Corp. and Winston Resources, Inc.,
("Contract") we hereby agree to the following effective May 1, 1995:
1. The base interest rate as stated in paragraph 6 of the Security
Agreement - Accounts Receivable (AIR Agreement) shall be decreased to 3 1/4% per
annum over the Citibank, N.A. prime rate ("Prime"). In the event that your
average outstanding balance is over $1,500,000 for two consecutive months, the
base interest rate shall be decreased to 2 3/4% over prime. In the event the
average loan balance is less than $1,500,000 for two consecutive months than the
base interest rate shall be increased to 3 1/4%. These rates will remain in
effect as long as Winston Resources, Inc. continues to show earnings on a
quarterly basis. In the event that there is an operating loss the interest rate
will be increased to 4% per annum over the Prime rate effective the first month
following the quarterly loss. The working days allowed to permit bank clearance
and collections pursuant to paragraph 6 of the MR Agreement shall be reduced to
three (3) working days.
2. The Contract shall be extended until April 16, 1997.
3. The Line of Credit is increased up to $2,500,000 in accordance with
and pursuant to the terms of the Security Agreements.
All other terms and conditions contained in the Contract as originally written
shall remain in full force and effect.
This amendment supersedes and replaces all prior amendments except for paragraph
2 of the Amendment letter dated 5/13/94 and the Amendment letter dated 12/14/93
to the "A/R Agreement" which shall continue to be in effect.
Please sign a copy of this letter to indicate your agreement to the above and
retain a copy for your records.
PC:af Very truly yours,
/s/ XXXXXX XXXXXXXXXX
FINOVA Capital Corporation
AGREED AND ACCEPTED: Xxxxxx Xxxxxxxxxx
Vice President
By: /s/ Xx Xxxx
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President
