Document:

United States Securities & Exchange Commission EDGAR Filing

EXHIBIT 4.35

GMAC COMMERCIAL FINANCE LLC

1290 Avenue of the Americas

New York, New York 10104

as of September 13, 2006

PARLUX FRAGRANCES, INC.

PARLUX LTD.

3725 S.W. 30th Avenue

Ft. Lauderdale, Florida 33312

Re: Amendment No. 6 to Revolving Credit and Security Agreement

Gentlemen:

Reference is made to certain financing arrangements by and among PARLUX FRAGRANCES, INC. (“Fragrances”) and PARLUX LTD. (each individually, a “Borrower” and collectively, the “Borrowers”) and GMAC Commercial Finance LLC, as successor by merger to GMAC Commercial Credit LLC (“Lender”), pursuant to certain financing agreements with Borrowers, including, but not limited to, that certain Revolving Credit and Security Agreement, dated as of July 20, 2001 (as amended, supplemented, restated, extended or otherwise modified, the “Credit Agreement”) entered into by and among Borrowers and Lender (the Credit Agreement, together with all related documents, agreements, guarantees, instruments or notes delivered in connection therewith, as the same may now exist or may hereafter be amended, modified, supplemented, restated, renewed or extended, are collectively referred to herein as the “Documents”).  All capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Credit Agreement, as amended hereby. 

Borrowers have requested that Lender amend certain provisions of the Credit Agreement, which Lender has agreed to do subject to the terms and provisions set forth in this letter agreement (hereinafter, this “Amendment”).

In consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and the respective agreements, warranties and covenants contained herein, the parties hereto agree as follows:

1.

Amendments to Credit Agreement.  The Credit Agreement is hereby amended, as of the date hereof, as follows:

(a)

Section 1.1 of the Credit Agreement is hereby amended and restated by the addition thereto, in the appropriate alphabetical sequence, of the following definitions:

“Amendment No. 6” shall mean that certain letter re: Amendment No. 6 to Revolving Credit and Security Agreement dated as of September 13, 2006 among Borrowers and Lender.

“Maximum Amount Increase Period” shall mean the period commencing on September 13, 2006 and ending on December 13, 2006.

(b)

The definition of “Maximum Loan Amount” as set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

““Maximum Loan Amount” shall mean $35,000,000; except that during the Maximum Amount Increase Period, Maximum Loan Amount shall mean $40,000,000.” 

(c)

Section 6.12 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“6.12.

Minimum Undrawn Availability. Maintain, on a consolidated basis, at all times Undrawn Availability of not less than $1,000,000.  During the Maximum Amount Increase Period, Undrawn Availability shall be calculated without regard to the Maximum Loan Amount.”

2.

Amendment Fee.  In consideration of the amendments set forth herein, Borrowers unconditionally agree to pay to Lender an amendment fee in the amount of Ten Thousand ($10,000) Dollars, which amendment fee shall be fully earned and payable as of the date hereof.  The amendment fee shall not be subject to refund, rebate or proration for any reason whatsoever, and shall be charged by Lender to any account of Borrowers maintained by Lender as of the date hereof.

3.

Release.  As material consideration for the execution of this agreement by Lender and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, effective as of the date hereof, each Borrower for itself and on behalf of its respective directors, officers, administrative agents, employees, representatives, successors and assigns (collectively, the “releasors”) hereby waives, releases, remises, acquits and discharges Lender and all of its affiliates, directors, officers, administrative agents, employees, representatives, shareholders, attorneys, accountants, consultants, advisors, successors and assigns (Lender, together with the foregoing collectively, the “releasees”) of and from any and all controversies, damages, costs, losses, causes of action, suits, judgments, claims, recoupments, counter-claims or demands, of every type, kind, nature, description or character, whether now existing or that could, might, or may be claimed to exist, of whatever kind or name, whether known or unknown, liquidated or unliquidated, fixed or contingent, foreseeable or unforeseeable, each as though fully set forth herein at length, in law, admiralty or equity (any of the foregoing, a “claim”), which any of the releasors previously had from the beginning of the world or now have against any of the releasees through the date hereof, related to or connected with the Credit Agreement and the other Documents, the loans, advances or other financial accommodations provided by Lender to Borrowers or any of them or the transactions contemplated by any of the foregoing.

4.

No Other Modifications; No Other Event of Default.  Except as specifically set forth herein, no other changes or modifications to the Credit Agreement or any of the other Documents are intended or implied, and, in all other respects, the Credit Agreement and the other Documents shall continue to remain in full force and effect in accordance with their respective terms as of the date hereof.  Except as specifically set forth herein, nothing contained herein shall 

2

evidence a waiver or amendment by Lender of any other provision of the Documents.  Lender hereby reserves all rights and remedies granted to Lender under the Documents, applicable law or otherwise and nothing contained herein shall be construed to limit, impair or otherwise affect the right of Lender to declare a default or an Event of Default with respect to any future non-compliance with any covenant, term or provision of the Documents now or hereafter executed and delivered in connection therewith.  Borrowers hereby represent and warrant that no Default or Event of Default exists after giving effect to the provisions of this Amendment.

5.

Entire Agreement.  The terms and provisions of this Amendment shall be for the benefit of the parties hereto and their respective successors and assigns; no other person, firm, entity or corporation shall have any right, benefit or interest under this Amendment. This Amendment sets forth the entire agreement and understanding of the parties with respect to the matters set forth herein.  This Amendment cannot be changed, modified, amended or terminated except in a writing executed by the party to be charged. 

6.

Effectiveness.  This Amendment shall not be effective unless and until Lender shall have received an original or copy hereof, duly executed and delivered by each Borrower.

7.

Counterparts.  This Amendment may be signed in counterparts, each of which shall be an original and all of which, when taken together, shall constitute one amendment.  In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart signed by the party to be charged.  Delivery of an executed counterpart of this Amendment by telefacsimile shall have the same force and effect as the delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by telefacsimile shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Amendment.

			
	 
	Very truly yours,

	 
	 
	 

	 
	GMAC COMMERCIAL FINANCE LLC

	  

	 
	 

	                                                                

	By:

	/s/ EDWARD HILL

	 
	Title:

	Director

[SIGNATURES CONTINUE ON NEXT PAGE]

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[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

ACKNOWLEDGED AND AGREED:

PARLUX FRAGRANCES, INC.

By:  /s/ Frank A. Buttacavoli          .

Title: EVP / COO / CFO                 .

PARLUX LTD.

By:  /s/ Frank A. Buttacavoli          .

Title: EVP / COO / CFO                 .

4CC Filed by Filing Services Canada Inc. 403-717-3898

THIS AMENDING AGREEMENT made effective the 5th day of May, 2005.

B E T W E E N:

TWIN MINING CORPORATION,

a corporation continued under the laws of Ontario

(hereinafter called “Twin Mining”)

- and -

HELIX RESOURCES INC.,

a corporation incorporated under the laws of Ontario

(hereinafter called “Helix”)

WHEREAS Twin Mining and Helix previously entered into a Claim Purchase Agreement made as of the 15th day of December, 2000 (the “Claims Purchase Agreement”) pursuant to which Twin Mining acquired from Helix the mineral claims described therein on the terms and for the consideration therein set out;

AND WHEREAS concurrently with entering into the Claims Purchase Agreement, Twin Mining and Helix entered into a gross royalty agreement (the “Gross Royalty Agreement”) and a net profits interest agreement (the “NPI Agreement”), in each case made as of the 15th day of December, 2000;

AND WHEREAS Twin Mining and Helix wish to amend the terms of the Claims Purchase Agreement, the Gross Royalty Agreement and the NPI Agreement as hereafter set out;

THEREFORE for good and valuable consideration, the receipt and sufficiency of which being hereby acknowledged by each party hereto, Twin Mining and Helix hereby agree as follows:

1.

All terms which are capitalized herein for other than grammatical purposes and not otherwise defined herein shall have the respective meanings as set out in the Claims Purchase Agreement.

- 2 -

2.

The obligations of Twin Mining pursuant to the Claims Purchase Agreement to:

(i)

pay Helix $100,000 on December 31, 2006, as set out in Section 2.03 of the Claims Purchase Agreement; and

(ii)

complete a pre-feasibility study, as set out in subsection 5.02(b) of the Claims Purchase Agreement;

are hereby eliminated and extinguished.

3.

Twin Mining hereby agrees to pay Helix $125,000 per annum (collectively, the “New Payments” and each a “New Payment”), to be due and payable on January 3rd of each calendar year, commencing on January 3, 2006.  If in any year January 3rd is not a Business Day, the said payment shall be due and payable on the first Business Day thereafter. The obligation of Twin Mining to pay the New Payments shall continue until the earlier of:

(i)

completion of production of a total of 500,000 carats of diamonds from the Claims (or any portion of the Claims) from and after the First Production Date; or

(ii)

termination of the Claims Purchase Agreement;

whereupon any its obligation to make any further New Payments shall be at an end. For greater certainty, no New Payment shall be prorated and termination of its obligation to make further New Payments shall not extinguish the liability of Twin Mining to make any New Payment then due and unpaid

4.

If any payment of a New Payment has not been paid in full to Helix when due in accordance with the provisions of section 3 hereof, Helix may give Twin Mining notice in writing of such default and, unless Helix has received such payment within twenty Business Days after receipt of such notice by Twin Mining, Twin Mining shall pay interest on the amount by which such payment is delinquent (as well as interest on interest) at a rate equal to the Prime Rate plus 3% per annum, calculated daily and compounded monthly, commencing on the date on which such delinquent amount was due and continuing until Helix receives payment in full of such delinquent amount and all 

- 3 -

accrued interest thereon.  If any payment of a New Payment required to be made by Twin Mining has not been paid within 6 months after receipt of a notice of default by Twin Mining, then Twin Mining shall be deemed to have forfeited all of its right, title and interest in and to the Claims to the benefit of Helix. The foregoing provisions of this section 4 shall apply notwithstanding any provisions of Article Six of the Claims Purchase Agreement to the contrary and the Claims Purchase Agreement is hereby amended to give effect to the foregoing.  

5.

Twin Mining shall be entitled to set off one-half of the amount of the New Payments paid to Helix against any payments otherwise due pursuant to the Gross Royalty (as defined in the Gross Royalty Agreement) and pursuant to the Net Profits Interest (as defined in the NPI Agreement) and Section 3.1 of each of the Gross Royalty Agreement and the NPI Agreement is hereby amended to give effect to the foregoing.  

6.

Twin Mining and Helix hereby confirm that as of the date hereof, each of the Claims Purchase Agreement, the Gross Royalty Agreement and the NPI Agreement, as amended hereby, is in good standing and is hereby ratified and confirmed in all respects, provided however that any inconsistency between this Agreement and any of the Claims Purchase Agreement, the Gross Royalty Agreement and the NPI Agreement, shall be resolved in favour of the provisions of this Agreement.

7.

This Agreement shall be binding upon and enure to the benefit of Twin Mining and Helix and their respective successors and assigns to the extent permitted under the Claims Purchase Agreement..  

8.

This Agreement may be executed in counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  This Agreement may be delivered by counterparts transmitted by facsimile transmission.

9.

This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and shall be treated in all respects as an Ontario contract.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers duly authorized effective as of the date first above written.

TWIN MINING CORPORATION

By: /s/ Hermann Derbuch

Hermann Derbuch

Chairman, CEO and President

HELIX RESOURCES INC.

By: /s/ Fred Tatarnic

Fred Tatarnic

President

I have authority to bind the Corporation

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