Agreement of Financial Support between Sterling Apparel Limited and JP Outfitters, Inc.
Sterling Apparel Limited, the main supplier for JP Outfitters, Inc., agrees not to demand payment for about $1 million owed and any additional working capital loans until JP Outfitters completes its initial public offering. Sterling also commits to supplying an extra $7.5 million in inventory within twelve months and assures uninterrupted inventory supply. This agreement supports JP Outfitters' financial stability during its IPO process.
Exhibit 10.38
Sterling Apparel Limited
18-19/F, Win Plaza, 9 Sheung Hei Street
San Po Kong, Kowloon, Hong Kong
September 25, 2023
JP Outfitters, Inc.
5345 Creek Road
Cincinnati, OH 45242
Re: Agreement of Financial Support
Dear Madam/Sir:
We are providing this letter in connection with the unaudited condensed consolidated financial statements of JP Outfitters, Inc. and Subsidiary (the “Company”) as of June 30, 2023 and for the six months ended June 30, 2023 and 2022. Sterling Apparel Limited (“Sterling”) is the primary supplier of inventories sold by the Company.
As of September 20, 2023, the Company owed Sterling approximately $1 million. Further, Sterling will also provide an additional $7.5 million worth of inventories within twelve months from the date the financial statements are issued. Sterling will not enforce its right to collect from the Company any trade payable for inventories supplied and the working capital loans extended until the Company receives its initial public offering proceeds. We also confirm that there will be no disruption to the supply of inventories ordered by the Company.
| /s/ Wong Mei Wai Alice | |
| Wong Mei Wai Alice | |
| Chief Executive Officer | |
| Sterling Apparel Limited | |
| /s/ Sam Chung | |
| Sam Chung | |
| Chief Financial Officer | |
| Sterling Apparel Limited | |
| /s/ Arnold Cohen | |
| Arnold Cohen | |
| President | |
| JP Outfitters, Inc. |
