June 24, 1991
3820 South Hill Street
Los Angeles, California 90037
RE: Collection Date Factoring Agreement
The following shall constitute the terms upon which we shall act as your sole factor (see Section 12 for the
definition of certain capitalized terms):
SECTION 1. SALE AND APPROVAL OF ACCOUNTS
1.1 You hereby sell, assign and transfer to us and we hereby purchase from you all of your now outstanding and
hereafter created or acquired Accounts, with full power to collect and otherwise deal therewith as the sole and
exclusive owner thereof.
1.2 (a) You will submit for our credit approval your customers' credit requirements, a description of your normal
selling terms and such other information as we may request concerning your customers. We may, in our sole
credit judgment, establish credit lines for sales to your customers on your normal selling terms and all sales to
such customers within the established credit line will be Approved Accounts provided that delivery or
performance is completed while the credit line remains in effect. You may also submit for credit approval specific
orders from your customers and we may, in our sole credit judgment, approve such orders on a single order
approval basis. All of our credit approvals will be in writing.
(b) We reserve the right to amend or withdraw a credit line at any time by advice to you, which advice will be
promptly confirmed in writing.
(c) We may withdraw a single order credit approval by notifying you verbally and/or in writing at any time prior
to the delivery of goods or performance of services. A single order credit approval will be automatically
withdrawn: (i) in the event delivery or performance is not made on or prior to the expiration date indicated on the
written single order credit confirmation form we send to you; or (ii) in the event any change is made in the
payment terms or delivery date of the Account.
(d) We shall have no liability to you or to any customer for our r