XX. XXX XXXXX AND XXXXX XXXXX
I IashHafim 00
Xxxxxxx, Xxxxxx, 43724
7 August 1997
Fidelity Holdings, Inc.
00-00 Xxx Xxxxxxx Xx., Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Attention: Mr. Xxxxx Xxxxx
Dear Xx. Xxxxx:
SUBJECT: BARAK AGREEMENT WITH FIDELITY HOLDINGS, INC.
Pursuant to the Master Agreement made as of the 18th day of April 1996, (the
"Master Agreement") a payment of $100,000.00 U.S. was to be paid to us on or
before August 8th, 1996. It is acknowledged that Fidelity Holdings, Inc.
(Fidelity) did not make this payment as required.
This will confirm that, subject to the provisions of this letter, we have
agreed to defer and amend the required payment provision pertaining to this
one payment of $100,000.00 U.S. which was due on or before August 8th, 1996,
as follows:
1. The principal amount is reduced to $85,000.00 following Barak payment to
Fidelity of $15,000.00 as cost share of patent infringement.
2. We have agreed to permit Fidelity to pay this sum of $85,000.00 in 12
monthly installments of principal and interest at the rate of 6% per
annum, in an agreed aggregate monthly amount of $7,315.65, the first
payment having been made July 9th, 1997, with 11 subsequent payments
payable on the first day of each month from and including August 1st,
1997 to and including June 1st, 1998, each in the amount of $7,315.65 on
account of principal and agreed interest.
The foregoing amendments do not in any way change or amend any of the other
provisions of the Master Agreement or any document executed between the
parties in connection with the closing of the transaction contemplated by the
Master Agreement. It is further expressly stipulated that if there is any
default at any time on the part of Fidelity in connection with the payment
terms set out in this letter or in connection with any other provisions of the
Master Agreement or any of the other documents entered into between us in
connection with the transaction contemplated by the Master Agreement, we reserve
the right to cancel the repayment terms (including the reduction of the
principal amount) agreed to in this letter and to rely upon the obligations of
Fidelity to have made the payment of $100,000.00 U.S. on August 8th, 1996, and
to consider the non-payment of same as a further act of default under the Master
Agreement.
If you are in agreement with the terms set out in this letter, please sign and
return a duplicate copy of this letter.
Yours very truly,
/s/ Xxx Xxxxx
Xx. Xxx Xxxxx
/s/ Xxxxx Xxxxx
Xxxxx Xxxxx
We hereby agree with the terms set out in this letter.
/s/ Xxxxx Xxxxx
President
Fidelity Holdings, Inc.
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