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EXHIBIT 10.6
MERCHANT FACTORS CORP.
1430 Broadway, New York, New York 00000 (000) 000-0000 Fax (000) 000-0000
ADDENDUM TO FACTORING AGREEMENT
Xxxxxxxxxxx Xxxxx & Co.
0000 Xxxxxxxxx Xxxx.
Xxxxx Xxxxxxx, XX 00000
Re: Discount Factoring Agreement
Gentlemen:
We refer to the Discount Factoring Agreement which we entered into on January
25, 1996 ("the Agreement"). We hereby agree that the Agreement be amended as
follows with effect from December 1, 1998:
Re: Paragraph 1 "Receivables" shall mean and include all accounts
except Walmart, KMart and Target Stores.
Re: Paragraph 5 The "effective rate" of interest shall be amended to
two percent (2%) in excess of the prime commercial
interest rate as defined.
The provision that the effective rate of interest
hereunder shall not be less than twelve percent (12%)
per annum is hereby deleted.
Re: Paragraph 6(b) Advances against the purchase price for net amount of
outstanding approved receivables assigned, as defined
shall be amended to an amount up to eighty percent
(80%) of the net amount thereof.
"Collection Days" shall mean five (5) business days
for the collection of checks and other instruments.
Re: Paragraph 7 The minimum aggregate commissions payable under this
agreement shall be amended to Fifty Thousand Dollars
($50,000) per calendar year. The minimum commission
payable for each month shall be Four Thousand One
Hundred and Sixty-six Dollare and Sixty-seven cents
($4,166.67) but should commissions payable during the
calendar year at any time aggregate more than the
foregoing annual minimum, then the previously charged
minimum commissions shall be rebated to you.
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Re: Paragraph 14 This Agreement shall continue in effect until
December 31, 2000 and shall be automatically renewed
for successive periods of one (1) year unless
terminated under the terms of the Agreement.
All other terms and conditions of the Agreement shall remain unchanged.
Very truly yours,
MERCHANT FACTORS CORP.
/s/ Xxxxxx Xxxx
Xxxxxx Xxxx
President
ACCEPTED, AGREED AND ACKNOWLEDGED:
XXXXXXXXXXX, XXXXX & CO. ATTEST: (SEAL)
By: /s/ Xxxxxxx Xxxxxx /s/ Xxxxxx X. Xxxxx
XXXXXXX XXXXXX, XXXXXX X. XXXXX
PRESIDENT SECRETARY
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