Document:

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                                                                   EXHIBIT 10.47

                            FORM OF WARRANT AMENDMENT

         This WARRANT AMENDMENT AGREEMENT ("Agreement"), dated as of the date
set forth below, by and between LITHIUM TECHNOLOGY CORPORATION, a Delaware
corporation ("LTC") and the holder (the "Warrant Holder") of the warrant (the
"Warrant") set forth below.

                                    RECITALS

         WHEREAS, LTC and the Warrant Holder have entered into a Warrant
Agreement relating to the warrants set forth below under the Warrant Holder's
name (the "Warrants").

         WHEREAS, LTC has entered into an Agreement and Plan of Merger dated as
of January 19, 2000 ("Merger Agreement") with Pacific Lithium Limited ("PLL"),
as amended.

         WHEREAS, in accordance with the Merger Agreement, LTC desires to amend
certain provisions of the Warrants subject to the terms and conditions of this
Agreement.

         NOW, THEREFORE, in consideration of these premises and the mutual
agreements contained in this Agreement, the Warrant Holder and LTC agree as
follows:

1.       The following provisions of the Warrant are amended and restated as
         follows:

         (a)      The exercise price of the Warrant is $0.15 per share.

         (b)      The Expiration Date of the Warrant is the earlier of (i) the
                  original expiration date set forth in the Warrant, or (ii) the
                  date thirty (30) days prior to the closing of the Merger
                  between LTC and Pacific Lithium Limited.

2.       This Agreement and any controversy which might arise herefrom will in
         all respects be interpreted, enforced and governed by the laws of the
         State of Delaware.

3.       This Agreement will be binding upon and inure to the benefit of the
         parties hereto and their respective heirs, representatives, successors
         and assigns.

4.       In consideration of the reduction of the exercise price of the Warrant
         the Warrant Holder hereby releases LTC and its directors, officers,
         employees, attorneys, agents and affiliates from any and all claims
         relating to the Warrant. In all other respects, the Warrant is affirmed
         in its entirety.

5.       Each party hereto represents and warrants that it has carefully read
         this Agreement and knows the contents hereof and that it has signed
         this Agreement freely and voluntarily and that each party has obtained
         independent counsel in reviewing this document and further acknowledges
         that the law firm of Gallagher, Briody & Butler has memorialized the
         within Agreement and has provided legal advice solely to LTC with
         respect to this Agreement.

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6.       The Warrant Holder was provided the opportunity to retain individual
         counsel, and has retained or waived the right to retain individual
         counsel to review this Agreement.

7.       This Agreement may be amended only by a written agreement executed by
         or on behalf of each of the parties hereto.

8.       Each party hereto represents and declares that each of the persons
         executing this Agreement on its behalf is and will be duly empowered
         and authorized to do so.

Dated:  _______________, 2000       LITHIUM TECHNOLOGY CORPORATION

                                            By:_________________________________
                                            David J. Cade
                                            Chairman and Chief Executive Officer

                                    WARRANT HOLDER

                                    Signature:__________________________________

                                    Print name:_________________________________

                                    Mailing Address:____________________________

                                    ____________________________________________

                                    ____________________________________________

                                    Number of Warrants Held:____________________
                                    Number of Warrant shares to be included
                                    in the registration statement:______________

                                    Date:_______________________________________EXHIBIT 10.18

                               FACTORING AGREEMENT

      THIS FACTORING  AGREEMENT (this  "AGREEMENT"),  made and executed this ___
day of _______,  2000,  by and  between  AVID  SPORTSWEAR,  INC.,  a  California
corporation  (the  "CLIENT");  and GE CAPITAL  COMMERCIAL  SERVICES,  INC.  (the
"FACTOR").

      1. APPOINTMENT.  Client appoints Factor as its sole factor with respect to
all sales of its  merchandise  or rendition of services to customers  and hereby
offers to sell and assign  only to  Factor,  as  absolute  owner,  all  Accounts
Receivables  arising out of such sales or services,  including all such sales or
services arising under any trade names or through any division or selling agent.
"ACCOUNTS  RECEIVABLE"  shall  mean  and  include  accounts,   contract  rights,
instruments,   documents,  chattel  paper,  general  intangibles,   returned  or
repossessed goods arising out of or relating to the sale or other disposition of
goods at any time or from time to time,  all  proceeds  thereof and  merchandise
represented  thereby. The assignment of Accounts Receivable to Factor shall vest
in Factor all of Client's rights, securities,  guaranties and liens with respect
to each  Account  Receivable,  including  all  rights of  stoppage  in  transit,
replevin,  reclamation, and all claims of lien filed by Client or held by Client
on personal  property,  and all rights and interest in the merchandise sold, and
all of  Client's  defenses  and rights of offset  with  respect to any  payments
received by Factor on Accounts Receivable, but Factor shall not be obligated to,
and shall not be liable for,  exercising  or  refusing  to  exercise  any rights
granted to Factor hereby.

      2. PURCHASE OF ACCOUNTS RECEIVABLE.  Factor agrees to purchase from Client
at the office of Factor all  Accounts  Receivable  first  approved  by Factor in
writing  as to  credit  risk  and  terms of sale  (each  such  approved  Account
Receivable being herein called a "FACTOR RISK ACCOUNT  RECEIVABLE").  All orders
from  customers  including the amount and terms of each proposed sale or service
to such  customers  shall be  submitted  in advance of purchase or  rendition of
service to Factor for prior written  approval,  which may be granted or withheld
at Factor's sole discretion.  Factor's  approval is subject to withdrawal either
orally or in writing at any time prior to shipment of  merchandise  or rendition
of  services,  and shall be deemed no longer  effective in any event if Client's
shipment of  merchandise  or rendition of services is made more than thirty (30)
days beyond the date  specified  for such  delivery or rendition in the terms of
sales  submitted to Factor for its approval,  or more than thirty (30) days from
the  date of  Factor's  approval  if no  delivery  or  rendition  date  has been
specified. Submission of orders for Factor's prior written approval shall not be
required  with regard to a sale made by Client in  compliance  with any customer
credit  line which may from time to time be issued  Client by Factor in its sole
discretion,  provided that  shipments are made prior to the  expiration  date or
withdrawal  of the credit  line  approval.  Any  customer  credit line issued by
Factor may be amended or withdrawn by Factor in whole or in part at any time and
for any reason on notice to Client in writing or by electronic  transmission  of
such  amendment or  withdrawal.  The amount of all Accounts  Receivable  of each
customer as to which Factor shall have approved a customer credit line shall, in
the  order in which  they have  arisen,  be  treated  as  Factor  Risk  Accounts
Receivable  up to the limit of the  customer  credit line in effect from time to
time.  Upon the receipt of payment from or issuance of credit to a customer with
respect to a Factor Risk Account  Receivable,  the Accounts  Receivable  of such
customer in excess of the  customer  credit  line  shall,  to the extent of such
payment  or credit  and in the order in which  they have  arisen,  be treated as
Factor Risk Accounts  Receivable,  unless prior to such payment or credit Factor
shall have withdrawn the credit line approval. Factor's withholding or

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withdrawing  of a customer  order  approval or credit line approval shall at all
times be in Factor's sole  discretion,  and Factor's actions with regard thereto
shall  not  render  Factor  liable  to  Client in any  respect  for  damages  or
otherwise.  Subject to Client's warranties and representation  herein contained,
Factor will assume the credit loss on each Factor Risk Account Receivable if the
customer,  after receiving and accepting delivery of goods or services, fails to
pay in full the Factor Risk Account  Receivable on its longest  maturity  solely
because of its f1nancial  inability to pay. If, however,  such failure to pay is
due in whole or in part to any other cause,  Factor shall not be responsible and
shall have full recourse to Client.  Factor at its option may purchase  Accounts
Receivable  not  approved as to credit risk or terms of sale (each such  Account
Receivable  not approved by Factor  being  herein  called a "CLIENT RISK ACCOUNT
RECEIVABLE"),  but each  purchase of a Client Risk Account  Receivable  shall be
with full  recourse to Client and Client agrees to pay Factor on demand for each
Client Risk Account Receivable.

      3. PURCHASE  PRICE.  The purchase  price of each Account  Receivable  (the
"PURCHASE  PRICE")  is the gross  amount  of the  Account  Receivable,  less any
discounts made available or extended to the customer (which shall be computed on
the shortest terms where  optional  terms are given),  returns and allowances of
any nature, and Factor's commission.  After purchase of an Account Receivable by
Factor, a discount,  credit,  unidentifiable payment or allowance may be claimed
solely by the customer, and if not so claimed, such discount, credit, payment or
allowance shall be the property of Factor.

      4. CLIENT RESERVE ACCOUNT. Factor shall establish on its books in Client's
name a reserve  account (the "RESERVE  ACCOUNT")  which Factor shall credit with
the gross amount of all Accounts Receivable  purchased by Factor from Client and
which Factor shall debit with all advances  made to Client or on its behalf,  as
well as all  factoring  commissions,  credits,  returns,  allowances,  discounts
available to Client's  customers,  anticipations  earned by Client's  customers,
factoring  charges,  interest and any other  amounts  chargeable to Client under
this Agreement or any supplement  hereto or any other  agreement  between Client
and Factor.  Factor shall furnish  Client with advices of all credits and debits
to the Reserve Account.  Factor shall furnish Client with a monthly statement of
its Reserve Account, and, unless exception is taken to this statement in writing
mailed to Factor within  ninety (90) days after  receipt by Client,  the monthly
statement shall be deemed correct and conclusively binding upon Client.

      5.  REMITTANCE  OF FUNDS TO  CLIENT.  As goods are  shipped  and  Accounts
Receivable,  evidenced  by invoices  and shipping  documents,  are  submitted to
Factor  with  duly  executed  assignment  schedules,  Factor  may,  in its  sole
discretion,  from time to time at Client's request make advances to Client in an
amount up to  _____________  percent  (__%) of the  Purchase  Price of  Accounts
Receivable  purchased by Factor hereunder,  less a reserve as may be required by
Factor, in its sole discretion. In addition, in Factor's sole discretion, Factor
may make  advances to Client  against the Purchase  Price of that portion of the
Accounts  Receivable  which were  outstanding  as of the effective  date of this
Agreement (collectively, the "Takeover Accounts") which are not more than thirty
(30)  days  past  due (no  advances  shall  be made  against  Takeover  Accounts
Receivable  which are more than thirty (30) days past due) that  Factor,  in its
sole  discretion,  deems  eligible for Advances in amounts of up to ____________
percent (__%) of the Purchase Price of such Takeover Accounts Receivable, less a
reserve that may be required by Factor, in its sole discretion.  Notwithstanding

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the  foregoing,  if at  any  time  the  aggregate  Purchase  Price  of  Accounts
Receivable arising from sales to a single account debtor exceeds an amount equal
to ________ percent (__%) of the total Purchase Price of all Accounts Receivable
from all  account  debtors  outstanding  at such time,  Factor will not make any
advances  against the Purchase Price of that portion of the Accounts  Receivable
of such  account  debtor in excess of said amount.  Factor  retains the right to
increase such reserve from time to time if, in Factor's discretion, the prospect
of collection of the  outstanding  advances or any other  indebtedness  owing by
Client to Factor,  including any indebtedness with respect to unpaid Client Risk
Accounts Receivable,  or the ability of Client to pay or perform its obligations
under this  Agreement or any other  agreement with Factor,  becomes  doubtful or
insecure,  or  additional  reserves  are  necessary  to protect  Factor  against
returns,  claims or defenses of Client's  customers  with respect to Factor Risk
Accounts  Receivables  or  any  other  contingencies.  All  advances  and  other
Obligations  (as defined below) owing to Factor,  including any debit balance in
the  Reserve  Account  and any  amounts  owing by Client to Factor or any of its
divisions for merchandise  purchased from any other concern factored or financed
by Factor or otherwise,  are repayable by Client on demand and may be charged to
the Reserve Account when due.

      6.  WARRANTIES AND  REPRESENTATIONS.  Client  warrants and represents that
each Account  Receivable sold and assigned to Factor  hereunder,  at the time of
such sale and  assignment:  (a) shall be genuine and valid and shall represent a
completed  delivery or performance in fulfillment in every respect of the terms,
conditions and specifications of a bona fide,  uncancelled and unexpired sale or
service in the ordinary course of business to a customer which is not affiliated
with Client in full compliance  with the  specifications  of such customer;  (b)
Client shall be at the time of delivery or performance the absolute owner of all
merchandise  and other  property  involved;  (c)  except for  Factor's  interest
therein, there are no security interests,  liens or encumbrances thereon; (d) is
enforceable  for the full  amount  thereof  and will be subject to no dispute or
claim by the customer in whole or in part as to price, terms, quality, quantity,
delay in shipment, offsets, counterclaims,  contra accounts or any other defense
of any other  kind and  character,  real or  claimed;  (e) will be subject to no
discounts, deductions,  allowances, offsets, counterclaims or other contra items
or to no special terms of payment which are not shown on the face of the invoice
thereof;  (f) will not represent a delivery of merchandise  upon  "consignment,"
"guaranteed  sale," "sale or return," "payment on reorder" or similar terms; (g)
is payable in United States  Dollars and has been invoiced to the customer by an
invoice that bears  notice of the sale and  assignment  to Factor in  compliance
with the terms of this Agreement;  and (h) will not represent a "pack,  bill and
hold"  transaction  unless Client furnishes Factor with a copy of the customer's
purchase order and has obtained customer's  agreement to grant Factor a security
interest in the  merchandise and to pay for the merchandise at the maturity date
of the invoice  irrespective of whether or not Client has received  instructions
to deliver the same.

      7.  COLLATERAL.   As  security  for  all   obligations,   liabilities  and
indebtedness of Client to Factor, now existing or hereafter incurred,  direct or
indirect,  absolute or contingent,  whether  created under this  Agreement,  any

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supplement hereto or any other agreement between Client and Factor or otherwise,
including without limitation,  obligations owed by Client to others which Factor
obtains  by  assignment   (all  of  the   foregoing   being  herein  called  the
"OBLIGATIONS"),  Client  grants  Factor a security  interest  in all of Client's
present and future accounts,  contract rights, instruments,  documents,  chattel
paper, general intangibles,  investment property, deposit accounts, rights under
letters of credit,  returned or repossessed  goods arising out of or relating to
the sale or other  disposition  of goods at any time or from  time to time,  all
books  and  records  (including,  without  limitation,  credit  files,  computer
programs,  print-outs,  and  other  computer  materials  and  records)  relating
thereto,  all proceeds thereof and merchandise  represented  thereby, and in all
sums  standing to the credit of Client and in any property of Client in Factor's
possession.  Recourse to security  shall not at any time be required  and Client
shall  at  all  times  remain  liable  for  the  repayment  upon  demand  of all
Obligations  at any time  owing by Client  to  Factor.  During  the term of this
Agreement,  Client  shall  not sell or  assign,  negotiate,  pledge or grant any
security interest in its Accounts Receivable,  inventory and proceeds thereof to
anyone other than Factor,  without  Factor's prior written  consent,  except for
sales of inventory in the ordinary course of business.

      8. INVOICING. All invoices for merchandise sold or services rendered shall
be prepared by Client and shall bear a notice that they have been  assigned  to,
are owned by and are payable directly and only to Factor. Upon Factor's request,
Client shall  furnish  Factor with copies of all invoices,  accompanied  by duly
executed assignment schedules,  original shipping or delivery receipts, and such
other information or documents as Factor in its discretion may request from time
to time. If Client fails to provide  Factor with copies of such invoices (or the
equivalent)  or such proof of shipment or delivery when  requested by Factor for
any Factor Risk Account  Receivable,  such Factor Risk Account  Receivable shall
automatically  become a Client Risk Account  Receivable and Factor shall have no
liability with respect thereto. Each invoice shall bear the terms of sale and no
change from the  original  terms of sale shall be made  without  Factor's  prior
written consent. Factor reserves the right to mail original invoices to Client's
customers at Client's expense;  however,  mailing, sending or delivery by Factor
of a bill or invoice shall not be deemed to be any representation by Factor with
respect thereto.

      9. PAYMENT OF ACCOUNTS RECEIVABLE. All payments of Accounts Receivable and
other  payments  on behalf of Client  received  by Factor  shall be  credited to
Client's account.  No check, draft or other instrument  received by Factor shall
constitute final payment unless and until such check,  draft or other instrument
shall have been  actually  collected.  The amount of the  Purchase  Price of any
Factor Risk Account Receivable which remains unpaid will be deemed collected and
will be credited to Client's  account as of the earlier of the following  dates:
(a) the date of the Account  Receivable's  longest maturity if any proceeding or
petition is  instituted or filed by or against the customer for relief under any
federal or state  bankruptcy or insolvency law, code or act, or if a receiver or
trustee is appointed  for the  customer;  or (b) as of the last day of the third
(3rd) month  following  its longest  maturity  date if such Factor Risk  Account
Receivable  remains  unpaid as of such date without the  happening of any of the
events  specified  in the  preceding  clause  (a).  If any Factor  Risk  Account
Receivable  credited to Client's  account is not paid for any reason  other than
the customer's  financial  inability to pay, Factor shall reverse the credit and
charge Client's  account  accordingly and such Account  Receivable shall then be
deemed a Client Risk Account Receivable.

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      10. REMITTANCES.  Without limiting the obligations of Client under Section
8 hereof, all remittances received by Client with respect to all of its Accounts
Receivable  purchased  by Factor  shall be held in trust for Factor,  and Client
shall  immediately  deliver to Factor the identical  checks,  drafts,  monies or
other  forms of payment  received,  and  Factor  shall have the right to endorse
Client's name on any check,  draft or other form of remittance  received,  where
such endorsement is required to effect collection. Client hereby appoints Factor
or such  person  as  Factor  may name as its  attorney-in-fact  to  execute  all
necessary  documents in Client's  name and do all things  necessary to carry out
this Agreement. Client ratifies and approves all acts of the attorney and agrees
that neither  Factor nor the attorney shall be liable for any acts of commission
or omission nor for any error of judgement or mistake of fact or law. This power
being coupled with an interest is  irrevocable  as long as Client is indebted to
Factor in any manner.

      11.  CUSTOMER  DISPUTES  AND  CLAIMS.   Client  agrees  to  notify  Factor
immediately  of all returns and  allowances  and of all disputes with and claims
made by customers and to adjust all such claims and disputes at its own expense,
issuing  credit  memoranda  promptly,  but subject to Factor's  approval.  It is
Factor's  practice to allow a  reasonable  time for the  settlement  of disputes
between Client and Client's customers without waiving Factor's right at any time
to adjust any claims and disputes on a Factor Risk Account  Receivable  directly
with the customer and to charge back to the Reserve Account at any time the full
amount of the  Account  Receivable  involved.  Factor may at any time charge the
Reserve Account the full amount of: (a) any customer  deduction of not more than
one hundred dollars;  (b) any Factor Risk Account which is not paid in full when
due for any reason other than the customer's financial inability to pay; (c) any
Account  for  which  there  is  a  breach  of  any  of  Client's  warranties  or
representations set forth herein; (d) any anticipation deducted by a customer on
any  Account;  and (e) any Client Risk Account  Receivable  which is not paid in
full when due.  Any such  charge  back  shall  not be  deemed  to  constitute  a
reassignment  of the  Account  Receivable,  and Factor  shall  retain a security
interest therein as security for all Obligations owing to Factor.

      12.  COLLECTION  OF  ACCOUNTS;  RETURNED  GOODS.  As owner of the Accounts
Receivable,  Factor shall have the right to (a) bring suit, or otherwise enforce
collection,  of the  Account  Receivable  in the name of Client or  Factor,  (b)
modify the terms of payment, settle, compromise or release, in whole or in part,
any amounts owing, on terms Factor may deem advisable,  and (c) issue credits in
the name of Client or  Factor.  Should  any goods be  returned  or  rejected  by
Client's customers or otherwise recovered by Client,  Client shall segregate and
hold such goods in trust for  Factor,  but at  Client's  sole risk and  expense.
Client shall also promptly notify Factor and, at Factor's request,  will deliver
such goods to Factor,  pay Factor the invoice price thereof,  or sell such goods
at Client's  expense for the purpose of paying  Client's  obligations to Factor.
Once Client has granted or issued a discount,  credit or allowance to a customer
on any Account  Receivable,  Client shall have no further interest therein.  Any
remittances  received  by Client on  account of any of the  Accounts  Receivable
shall be held by Client as  trustee of an express  trust for  Factor's  benefit,
separate from its own property, and Client shall immediately deliver the same in
kind properly endorsed to Factor. Factor may endorse Client's name on any check,
instrument,  draft or other  document in payment of an Account  Receivable.  Any
payments received from or for the account of a customer obligated on both Factor

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Risk Accounts  Receivable which are past-due and Client Risk Accounts Receivable
shall be applied first to the Factor Risk Accounts  Receivable  irrespective  of
instructions of the customer.

      13.   COMMISSIONS.   Client  agrees  to  pay  Factor  a  commission  equal
to______________  percent  (___%) of the gross  amount  of  Accounts  Receivable
assigned to Factor hereunder; provided, however, that the minimum commission for
each Accounts Receivable shall be $____. All commissions payable hereunder shall
be  charged  to the  Reserve  Account as of the date of receipt by Factor of the
assignment  schedules of the Accounts  Receivable.  The foregoing  commission is
based upon Client's  maximum selling terms of no longer than sixty (60) days. On
sales for which extended or additional  terms are granted,  the commission shall
be  increased  by  _____________  percent  (___%) for each thirty (30) days,  or
portion thereof,  by which Client's selling terms are extended.  Factor shall be
entitled to charge Client a surcharge on each Account  Receivable arising from a
sale of goods to an account  debtor  listed on SCHEDULE A attached  hereto.  The
surcharge  shall be set  forth on  SCHEDULE  A.  Factor  has the  right to amend
Schedule A from time to time,  and any such  amendment  shall be effective as to
any Accounts  Receivable assigned to Factor after Factor has sent such amendment
to Client.

      14.  INTEREST.  Client  shall pay  interest  upon the average  daily Funds
Employed  at the close of  business  each day at a rate equal to ____% per annum
over the Index Rate (the "Governing  Rate").  "FUNDS  EMPLOYED" shall mean gross
Accounts  Receivable  outstanding on Factor's books less any balance outstanding
in the Reserve  Account to the credit of Client.  If the Reserve  Account should
show a debit  balance,  such  debit  balance  shall be  added to gross  Accounts
Receivable  outstanding in determining  Funds Employed.  "Index Rate" shall mean
the latest rate for 30-day  dealer placed  commercial  paper (which for purposes
hereof  shall mean high grade  unsecured  notes  sold  through  dealers by major
corporations in multiples of $1,000),  which normally is published in the "Money
Rates"  section  of The Wall  Street  Journal  (or if such rate  ceases to be so
published, as quoted from such other generally available and recognizable source
as Lender  may  select).  The Index Rate  shall be  determined  (i) on the first
business day immediately  prior to the Closing Date and (ii) thereafter,  on the
last business day of each  calendar  month for  calculation  of interest for the
following  month.  Interest will be calculated on a daily basis (computed on the
actual number of days elapsed over a year of three hundred sixty (360) days) and
shall be charged to the  Reserve  Account as of the last day of each  month.  If
average daily Funds Employed  reflect a credit balance,  Factor shall credit the
Reserve Account,  as of the last day of the month, with interest on such average
daily credit balance at a rate equal to three percent below the Governing  Rate.
The applicable Governing Rate for the balance of the calendar month during which
this Agreement  becomes  effective shall be based on the Index Rate in effect on
the  last  day of the  month  preceding  the  date  of  this  Agreement  and the
applicable  Governing Rate for each month thereafter shall be based on the Index
Rate in effect on the last day of the  preceding  calendar  month.  On computing
interest payable by Client under this Agreement and any supplement  hereto,  all
Customer checks and other payments received by Factor shall be deemed applied to
the Obligations two business days after the date of Factor's receipt.

      15.  FINANCIAL  STATEMENTS  AND  INFORMATION;  INSPECTIONS.  Client  shall
furnish  Factor by no later than 90 days following the conclusion of each fiscal
year of Client, annual audited financial statements of Client and its Affiliates

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(as defined in Schedule C attached hereto), on a consolidated basis, prepared by
an  independent  accountant  acceptable to Factor.  Client shall also furnish to
Factor by no later than 60 days  following the conclusion of each fiscal quarter
of Clients quarterly reviewed financial statements of Client and its Affiliates,
on a consolidated  basis,  prepared by an independent  accountant  acceptable to
Factor, as well as any other financial information upon Factor's request. Client
shall  permit  any  representative  of Factor to visit  and  inspect  any of the
properties  of Client,  to examine all books of accounts,  records,  reports and
other papers, to make copies and extracts therefrom, and to discuss the affairs,
finances and accounts of Client with its officers, employees, independent public
accountants,  creditors and depository institutions all at such reasonable times
and as often as may be reasonably requested.

      16.  FINANCIAL  CONDITION.  Client  warrants  that it is solvent and shall
remain solvent during the term of this Agreement;  that any financial statements
delivered to Factor  accurately and fairly state Client's  financial  condition;
that there has been no material adverse change in Client's  financial  condition
as reflected in the statements since the date thereof nor do the statements fail
to disclose any fact or facts which might  materially  adversely affect Client's
financial  condition;  and there is no litigation  pending or threatened,  which
taken in the aggregate if adversely  determined,  can  reasonably be expected to
have a material adverse affect on Client's financial condition.

      17. TERM OF AGREEMENT;  TERMINATION.  This Agreement  shall take effect on
the date of acceptance by Factor and shall remain in full force and effect for a
term of one (1) year and shall automatically renew for additional one year terms
unless  terminated:  (a) by Factor or  Client on not less than  sixty  (60) days
written notice prior to the anniversary  date (an  "Anniversary  Date" means the
last day of the 12th month following the date of this Agreement and the same day
in each year thereafter) or (c) by Factor without notice if any of the following
events (each,  an "EVENT OF DEFAULT")  shall occur and shall not be cured within
fifteen  (15)  business  days  (provided,  however,  that there shall be no cure
period   for  any  Event  of  Default   that  is  based   upon  an   intentional
misrepresentation  by  Client or is the  result  of the an event  listed in (iv)
below): (i) Client shall default in the payment of any of the Obligations on the
due date thereof (whether due at stated maturity,  on demand,  upon acceleration
or otherwise); (ii) any representation or warranty made in this Agreement or any
supplement hereto, or in any other document executed in connection herewith,  or
any instrument,  certification  or financial  statement  furnished in compliance
with or in reference hereto or thereto, or in any other agreement between Client
and Factor,  shall prove incorrect or misleading in any material adverse respect
when made or furnished;  (iii) Client shall fail or neglect to perform,  keep or
observe any covenant or agreement  contained in this Agreement or any supplement
hereto or any other  agreement  between Client and Factor and such failure shall
have a material  adverse effect on the repayment of the Obligations or the value
of the Collateral; (iv) Client or any guarantor of the Obligations shall file or
have filed against it a petition,  answer or consent  seeking relief under Title
11 of the  United  States  Bankruptcy  Code,  as now  constituted  or  hereafter
amended,  or any  other  applicable  Federal  or state  bankruptcy  law or other
similar  law,  or  a  receiver,   liquidator,   assignee,   trustee,  custodian,
sequestrator or similar  official shall be appointed for Client or any guarantor
of the  Obligations  or any  substantial  part of its or his property and Client
shall fail to have the  foregoing  dismissed  within  sixty  (60) days;  (v) the
occurrence of any event or condition  which,  alone or when taken  together with
all other events or  conditions  occurring or existing  concurrently  therewith,
Factor  determines  (1) has or may be  reasonably  expected  to have a  material
adverse  effect  upon  Client's  business,  operations,   properties,  condition

                                      -7-
<PAGE>

(financial  or  otherwise);  (2) has or may be  reasonably  expected to have any
material adverse effect  whatsoever upon the validity or  enforceability of this
Agreement or any other  agreement  between Client and Factor;  (3) has or may be
reasonably  expected to have any material  adverse  effect upon any security for
the  Obligations,  Factor's liens therein or the priority of such liens;  or (4)
materially  impairs the ability of Client to perform its obligations  under this
Agreement or any other  agreement  between Client and Factor,  or the ability of
Factor to  enforce  and  collect  the  Obligations  or  realize  upon any of the
security for the  Obligations in accordance  with the terms of this Agreement or
any other  agreement  between  Client and Factor or applicable  law; (vi) Client
becomes  unable to meet its debts as they mature,  fails,  closes,  suspends for
more than ten (10) business  days, or goes out of business;  or (vii) there is a
change (by death or otherwise) in Client's principal stockholders or owners.

      18. EFFECT OF  TERMINATION.  Upon the effective date of  termination,  all
Obligations of Client to Factor shall become immediately due and payable without
further notice or demand  irrespective of any maturity dates  established  prior
thereto.  However,  no such  termination  shall release or abrogate any security
interest  held by  Factor in any  collateral  of  Client  until all of  Client's
Obligations  to  Factor,  including  commissions  and  interest  and all  costs,
expenses and attorney  fees as herein  provided,  are paid in full. In the event
that Factor  shall cease to act as factor for Client,  Client  agrees to furnish
Factor with  indemnity  satisfactory  to Factor that will protect Factor against
possible  charges to Client under the terms of this  Agreement  and until Client
does so, Factor may hold any balance remaining to Client's credit in the Reserve
Account as security for all  Obligations  of Client to Factor.  Client shall pay
Factor upon demand all costs and expenses,  including  reasonable attorney fees,
incurred  by Factor to obtain or  enforce  payment of any  Obligations  due from
Client to Factor or in the  prosecution  or successful  defense of any action or
proceeding  concerning any matter  arising out of or related to this  Agreement,
the factoring of the Client's Accounts  Receivable by Factor, or any Obligations
owing by Client to Factor.

      19. LIEN  PERFECTION.  Client  agrees to execute and deliver to Factor all
financing  statements  provided for by the Uniform Commercial Code and all other
documents  or  instruments  which may be  required  by law or which  Factor  may
request  to  perfect  its first  priority  security  interest  hereunder  and to
cooperate with Factor in the filing,  recording or renewal  thereof,  and to pay
all  filing  and  recording  fees  and  expenses  related  thereto,  and  Client
authorizes  Factor and any person whom Factor  designates  as Client's  attorney
with power to sign  Client's  name  thereon.  This power being  coupled  with an
interest is  irrevocable  as long as Client is indebted to Factor in any manner.
Client shall  execute,  acknowledge  and/or  deliver such other  instruments  as
assurances as may  reasonably  be requested to  effectuate  the purposes of this
Agreement.  At  Factor's  option,  this  Agreement  may be filed as a  financing
statement.

      20. PREFERENCES.  Client shall indemnify and hold Factor harmless from any
loss,  damage or expense  (including  attorneys'  fees)  incurred by Factor as a
result of a claim made at any time against  Factor for the repayment or recovery
of any  amount  received  by  Factor  in  payment  of any  Client  Risk  Account
Receivable by the payor or legal representative  thereof (including a trustee in
bankruptcy  or  assignee  for  the  benefit  of  creditors)  on the  grounds  of
preference  under the provisions of the Bankruptcy  Code or any other federal or

                                      -8-
<PAGE>

state insolvency law. If such claim is ever made against Factor,  in addition to
all of Factor's other rights under this Agreement, Client shall pay to Factor on
demand the full net face amount of any such Client Risk Account  Receivable,  or
if Factor so elects,  Factor shall have the right to charge  against the Reserve
Account the full net face amount of any such Client Risk Account Receivable, but
such charge back shall not be deemed a reassignment  thereof.  The provisions of
this Section 20 shall survive the  termination of this Agreement and the payment
in full of the Obligations.

      21.  NOTICES.  Any  notices,  demands,  consents,  or  other  writings  or
communications  permitted  or  required  by this  Agreement  shall  be  given by
facsimile  transmitter,  overnight air courier or certified mail, return receipt
requested, addressed to the party to be notified as follows:

           (a)   If to Factor:      ____________________________________
                                    ____________________________________
                                    ____________________________________
                                    ____________________________________
                                    ____________________________________

           (b)   If to Client:      Avid Sportswear, Inc.
                                    19143 South Hamilton Avenue
                                    Gardena, California  90248
                                    Attn:  _____________________________
                                    Facsimile No. ______________________

or to such other  address as each party may designate for itself by notice given
in  accordance  with this  Section 21. Any written  notice or demand that is not
sent in conformity with the provisions hereof shall nevertheless be effective on
the date that such notice is actually received by the noticed party.

      22.  MISCELLANEOUS.  This Agreement,  together with any supplement hereto,
contains  the entire  agreement  between the  parties,  and cannot be  modified,
altered,  changed or amended  orally.  This Agreement is intended solely for the
benefit  of Factor  and  Client,  and no other  person or party  (including  any
guarantor),  is intended to be benefited hereby in any way. The captions in this
Agreement are for  convenience  of reference  only and shall not define or limit
any of the terms or provisions hereof.  Failure of Factor to exercise any rights
granted to it hereunder upon any breach or default by Client shall not be deemed
a waiver thereof in the event of further  breaches or defaults.  The remedies of
Factor  hereunder  shall be  deemed to be  cumulative  and not  exclusive.  This
Agreement shall be binding upon, and inure to the benefit of, the parties hereto
and their respective successors and assigns and shall become effective only from
the date of Factor's written acceptance. This Agreement is made and accepted and
shall be construed,  interpreted and enforced in accordance with the laws of the
State of California,  without regard to conflict of law  principles,  and Client
irrevocably  consents  and submits to the  jurisdiction  of state courts of, and
federal courts in, the State of California,  for the purpose of any suit, action
or proceeding relating hereto.

                                      -9-
<PAGE>

      23. WAIVER OF JURY TRIAL.  TO THE FULLEST  EXTENT  PERMITTED BY APPLICABLE
LAW, FACTOR AND CLIENT HEREBY WAIVE,  IRREVOCABLY AND UNCONDITIONALLY,  TRIAL BY
JURY IN ANY ACTION  BROUGHT ON,  UNDER OR BY VIRTUE OF OR RELATING IN ANY WAY TO
THIS AGREEMENT OR ANY SUPPLEMENT  HERETO OR ANY OF THE OTHER DOCUMENTS  EXECUTED
IN CONNECTION HEREWITH, OR ANY CLAIM,  DEFENSE,  RIGHT OF SETOFF OR OTHER ACTION
PERTAINING  HERETO,  OR TO ANY OF THE FOREGOING,  WHETHER  SOUNDING IN CONTRACT,
TORT OR OTHERWISE.

      24.  FEES.  Client  agrees to pay Factor the fees set forth in  SCHEDULE B
attached hereto in the amounts and on the dates set forth therein and authorizes
Factor  to pay such fees on their  respective  due  dates by  charging  Client's
Reserve Account.

      25.  SPECIAL  COVENANTS.  For  so  long  as any  of  the  Obligations  are
outstanding,  Client covenants that, unless otherwise  consented to by Factor in
writing,  it shall  comply with the  covenants  set forth in SCHEDULE C attached
hereto.

      26. CONDITIONS PRECEDENT AND SUBSEQUENT.  This Agreement is subject to the
conditions precedent and subsequent set forth in SCHEDULE D attached hereto.

      IN WITNESS  WHEREOF,  the parties hereto have duly executed this Agreement
on the day and year first above written.

                             AVID SPORTSWEAR, INC.,
                             a California corporation

                             By:_____________________________________________
                             Title:__________________________________________

Accepted in Los Angeles, California:

GE CAPITAL COMMERCIAL SERVICES, INC.

By:_________________________________
Title:______________________________

Date: _______ __, 2000

                                      -10-
<PAGE>

                                   SCHEDULE A
                                       TO
                               FACTORING AGREEMENT

                               SURCHARGE ACCOUNTS
                               ------------------

ACCOUNT DEBTOR                                  SURCHARGE PERCENTAGE(1)
--------------                                  -----------------------

                                                        ___%
------------------
                                                        ___%
------------------

------------------

1 Surcharge percentage of the gross amount of the Accounts Receivable owing from
the listed account debtor that are assigned to Factor hereunder.

                                      -11-
<PAGE>

                                   SCHEDULE B
                                       TO
                               FACTORING AGREEMENT

                                SCHEDULE OF FEES
                                ----------------

      1. A set-up fee equal to $______  which shall be fully earned and shall be
paid upon the date of the Agreement.

      2. All  legal  fees and  expenses  of  Factor  up to  $_____  relating  to
preparation  of Factoring  Loan  Documents  related hereto and Factor's fees and
expenses  relating  to the  perfection  of  Factor's  security  interest  in the
Collateral.

      3. All fees,  costs and  expenses  incurred  by  Factor to  conduct  field
audits,  examinations of collateral and other investigations required by Factor,
up to a maximum annual amount of $_____.

      Once paid, all such fees shall be non-refundable.

                                      -12-
<PAGE>

                                   SCHEDULE C
                                       TO
                               FACTORING AGREEMENT

                                SPECIAL COVENANTS
                                -----------------

      For the  purposes  of this  SCHEDULE  B to the  Factoring  Agreement,  the
following terms shall have the following meanings:

      "AFFILIATE"  - as to Client or any of its  Subsidiaries,  any other person
(other than a Subsidiary):  (i) which directly or indirectly through one or more
intermediaries  controls,  or is controlled by, or is under common control with,
Client or any of its Subsidiaries;  (ii) which  beneficially owns or holds 5% or
more of any class of the stock of Client or any of its Subsidiaries; or (iii) 5%
or more of the stock (or in the case of a person which is not a corporation, 5 %
or more of the equity interest) of which is beneficially owned or held by Client
or any of its Subsidiaries.

      "ADJUSTED TANGIBLE ASSETS" - all assets of Client and its Affiliates which
would in accordance with GAAP be classified as assets on their combined  balance
sheet except:  (i) any surplus  resulting from any write-up of assets subsequent
to the date of the Agreement; (ii) deferred assets, other than prepaid insurance
and  prepaid  taxes;  (iii)  patents,   copyrights,   trademarks,  trade  names,
non-compete agreements, franchises and other similar intangibles; (iv) goodwill,
including  any amounts,  however  designated  on such  combined  balance  sheet,
representing  the excess of the purchase price paid for assets or stock over the
value  assigned  thereto  on  the  books  of  Client  and  its  Affiliates;  (v)
unamortized debt discount and expense; and (vi) Accounts  Receivable,  notes and
other receivables due from Affiliates, officers or employees.

      "ADJUSTED TANGIBLE NET WORTH" - at any date means a sum equal to:

             (i) the net  book  value  (after  deducting  related  depreciation,
      obsolescence,  amortization,  and  other  proper  reserves)  at which  the
      Adjusted  Tangible Assets of Client and its Affiliates would be shown on a
      Combined balance sheet at such date in accordance with GAAP, MINUS

             (ii)  the  amount  at  which  the  liabilities  of  Client  and its
      Affiliates  (other than capital stock and surplus)  would be shown on such
      Combined balance sheet in accordance with GAAP, PLUS

             (iii)  Subordinated  Debt,  i.e.,  indebtedness of Client which has
      been  subordinated  in light of payment to the  Client's  indebtedness  to
      Factor.

      "CURRENT  ASSETS"  - at any date  means  the  amount  at which  all of the
current  assets of Client and its  Affiliates  would be properly  classified  as

                                      -13-
<PAGE>

current assets shown on a Combined balance sheet at such date in accordance with
GAAP except that amounts due from Affiliates and investments in Affiliates shall
be excluded therefrom.

      "CURRENT  LIABILITIES"  - at any date means the amount at which all of the
current liabilities of Client and its Affiliates would be properly classified as
current  liabilities on a Combined balance sheet at such date in accordance with
GAAP.

      "WORKING  CAPITAL" - at any date the excess of Current Assets at such date
over Current Liabilities at such date.

      "GAAP" - generally accepted accounting  principles in the United States of
America in effect from time to time.

      "SUBSIDIARY"  -  any  corporation  of  which  Client  owns,   directly  or
indirectly through one or more intermediaries,  more than fifty percent (50%) of
the stock at the time of determination.

      For so long as the Agreement is in effect,  and  thereafter for so long as
there are any Obligations to Factor,  Client  covenants that,  unless  otherwise
consented to by Factor in writing,  it shall comply with the following financial
covenants,  which shall be  determined  as of the end of each fiscal  quarter of
Client:

             (a) ADJUSTED TANGIBLE NET WORTH.
                 ---------------------------

            ------------------------------------------------------------------
            Minimum  Adjusted  Tangible                 Fiscal Quarter End
            Net Worth Of Not Less Than

            ------------------------------------------------------------------
                    $__________                               12/31/00
            ------------------------------------------------------------------
                    $__________                                3/31/01
            ------------------------------------------------------------------
                    $__________                               06/30/01
                                                   and all quarters thereafter
            ------------------------------------------------------------------

                                      -14-
<PAGE>

             (b) WORKING CAPITAL.
                 ---------------

            ------------------------------------------------------------------
            Minimum  Working Capital of                 Fiscal Quarter End
            not Less Than

            ------------------------------------------------------------------

            $_______                                          12/31/00
            ------------------------------------------------------------------

            $_______                                          3/31/01
            ------------------------------------------------------------------

            $_______                                          6/30/01
                                                   and all quarters thereafter
            ------------------------------------------------------------------

                                      -15-
<PAGE>

                                   SCHEDULE D
                                       TO
                               FACTORING AGREEMENT

                       CONDITIONS PRECEDENT AND SUBSEQUENT
                       -----------------------------------

      CONDITIONS  PRECEDENT.  As conditions  precedent to any advances by Factor
under this Agreement or any  supplements or riders hereto,  Client shall execute
and  deliver,  or cause to be executed  and  delivered,  to Factor,  in form and
substance satisfactory to Factor and its counsel, the following:

      1.  Financing   statements  (form  UCC-1)  and  fixture  filings  in  form
satisfactory  for  filing  and  recording  with  the  appropriate   governmental
authorities.

      2.  Certified  extracts from the minutes of the meetings of Client's board
of  directors  authorizing  the  borrowings  and the  granting  of the  security
interest  provided for herein and authorizing  specific  officers to execute and
deliver the agreements provided for herein.

      3. A  certified  copy  of  Client's  Articles  of  Incorporation  and  any
amendments  thereto,  a certificate  of good standing  showing that Client is in
good standing under the laws of the State of its  incorporation and certificates
indicating  that  Client  has  qualified  to  transact  business  and is in good
standing  in any  other  state in  which  the  conduct  of its  business  or its
ownership of property requires that it be so qualified.

      4. UCC searches,  tax lien and litigation  searches,  fictitious  business
statement filings,  insurance  certificates,  notices or other similar documents
which  Factor may  require and in such form as Factor may  require,  in order to
reflect,  perfect or protect the priority of Factor's security  interests in the
collateral granted to Factor under this Agreement,  any supplements or riders to
this Agreement or in any other agreements between Factor and Client.

      5. A  validity  guaranty,  in  form  acceptable  to  Factor  in  its  sole
discretion, duly executed and delivered by Earl Ingarfield.

      6. A separate general continuing  guaranty of the Obligations of Client to
Factor, in a form acceptable to Factor in its sole discretion, duly executed and
delivered by Avid Sportswear & Golf Corp, a Nevada corporation,  together with a
copy  of the  certified  extracts  from  the  minutes  of the  meetings  of such
guarantor's  board of  directors  authorizing  its  continuing  guaranty  of the
Obligations  and  authorizing  specific  officers  to execute  and  deliver  the
guaranty and any related documents.

      7.  Evidence  satisfactory  to Factor that Client has  obtained  insurance
policies or binders, with such insurers and in such amounts as may be acceptable
to Factor,  respecting the inventory of Client and any other  tangible  personal
property  comprising  the  Collateral  and  naming  Factor as a loss  payee on a
lender's loss payee endorsement acceptable to Factor in its sole discretion.

                                      -16-
<PAGE>

      8. Separate  subordination  agreements,  in a form acceptable to Factor in
its sole  discretion,  duly  executed and  delivered by each First State Bank of
Florida and by the primary shareholders of Client, respectively, to Factor.

      9. Evidence  satisfactory to Factor,  in its sole discretion,  that Client
has recorded fictitious business name statements in the appropriate governmental
offices regarding all of the trade names used by Client in its business.

      10. A Collateral  Assignment of License Rights executed by Client in favor
of Factor with respect to license  agreements to which Client is a party and, in
the case of license agreements under which Client is the licensee,  a consent of
licensor  containing  terms and  conditions  acceptable  to Factor,  in its sole
discretion.

      CONDITIONS  SUBSEQUENT.  As a  conditions  subsequent  to initial  closing
hereunder,  Client shall  perform or cause to be performed  the  following  (the
failure by Client to so perform or cause to be  performed  shall  constitute  an
event of default under this Agreement):

      1. By no later than  September 15, 2000, a separate  waiver and consent by
real property owner, containing terms and conditions acceptable to Factor in its
sole  discretion,  for each  facility  where  inventory  of Client  is  located,
executed by the owner of such  facility and  notarized for recording in the real
estate records of the county where such facility is located.

      2. By no  later  than  120th  day  following  the  effective  date of this
Agreement,  Client shall have  implemented  a system  satisfactory  to Client to
transmit electronically to Factor invoice assignments.

                                      -17-

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