Fill and Sign the General Form of Factoring Agreement Regarding the Assignment of

General Form of Factoring Agreement Page 1 of 6 General Form of Factoring Agreement -- Assignment of Accounts Receivable Agreement made on the day of , 20 , between , a corporation organized and existing under the (Name of Factor) laws of the state of , with its principal office located at (Name of State) , referred to herein as Factor, and (Street Address, City, County, State, Zip Code) , a corporation organized and existing under the (Name of Seller) laws of the state of , with its principal office located at (Name of State) , referred to herein as Client. (Street Address, City, County, State, Zip Code) Whereas, Client is engaged in the general business of , (Type of Business) and normally sells and delivers merchandise to customers on a credit basis; and Whereas, Client desires to obtain funds and commercial credit for operation of its business against its accounts receivable; and Whereas, Factor is willing to purchase Client's accounts receivable according to the terms set forth in this Agreement; Now, therefore, for and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1.
. 2. (the date and time this agreement is executed shall be the day and date specified above in paragraph (1)(b) above). 3. (the date of this agreement) 2. In consideration of and subject to the covenants herein contained, and without any deduction or adjustment by or to factor, (a) factor shall be obligated to pay for and deliver cash equivalent financial securities issued by client at the issue date and for each calendar quarter immediately following the calendar quarter immediately preceding the calendar quarter in which the issuance date falls; and (b) client shall, in consideration of and subject to consideration to factor of amount specified by factor, deliver cash equivalent financial securities as of the sale date and for each calendar quarter immediately following the calendar quarter immediately preceding the calendar quarter in which the sale date falls; and 4. (the date and time this agreement is entered into shall be the date and time specified in paragraph (1) above). 5. This agreement shall be filed and shall become effective upon (the filing date set forth above), and in the event there is an event of default, effective as of (the earliest of) the day which is one business day after the filing date of this agreement, or (the day the event of default occurred). 6. No person has authority to create an agency or proxy or to act as agent. 7. The parties agree as follows: 5. This agreement shall be filed and shall become effective upon (the filing date set forth above), and in the event there is an event of default, effective as of (the earliest of) the day which is one business day after the filing date of this agreement, or (the day the event of default occurred). 8. This agreement shall be governed by the laws of the state of Alabama, without regard to its conflict of law provisions. The court sitting in the matter shall have jurisdiction of the agreement and the validity of the agreement at all times in the case is hereby hereby admitted. 9. Any and all disputes arising out of or in connection with the execution and delivery of this agreement shall be finally settled by binding arbitration under the federal arbitration act, 8 USC §1201 et seq., and the provisions of that act shall prevail. 10. This agreement constitutes the entire agreement between the parties and supersedes earlier understandings, agreements and understandings. 12. (date of this agreement or acceptance of terms) (the date of entry