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Majesco, units sign receivable purchase agreement with HSBC Bank USA

Majesco and units Majesco Software & Solutions Inc. and Cover-All Systems Inc. entered into a receivable purchase agreement with HSBC Bank USA NA.

Under the agreement, HSBC may advance funds against certain eligible accounts receivable at an agreed advance rate. The outstanding aggregate amount of all advances will not exceed $10.0 million at any time.

The facility bears interest at 2% plus the 90-day LIBOR rate. HSBC will also receive an arrangement fee equal to 0.20% of the facility limit and a facility review fee equal to 0.20% of the facility limit. Majesco and its units, acting as HSBC's agent for the collection of receivables, will collect and otherwise enforce payment of the receivables.

The agreement's term is for a minimum period of 12 months and will continue unless terminated by either party. Either party may terminate the agreement at any time upon 60 days' prior notice to the other party. The agreement will provide additional liquidity to Majesco and its units for working capital and other general corporate purposes.