exv10w4






Exhibit 10.4




Agreement for IBM Global Financing Platinum Plan




Invoice Discounting Schedule



Supplies Distributors S.A.



	 	 	 	 	 	 	 

	Your Name

	 	Supplies
Distributors S.A.
	 	Schedule Number
	 	10
	 
	 	 	 	 	 	 
	Your Number

	 	SDSA — RC Liege
208795
	 	Effective date of
Schedule
	 	25 March 2010
	 
	 	 	 	 	 	 
	Credit Limit

	 	€16,000,000
	 	Commencement Date
	 	27 September 2001
	 
	 	 	 	 	 	 
	No Charge Period

	 	IBM 45 days
	 	Prepayment

Percentage
	 	(i) 80% of Eligible
IBM and InfoPrint
Solution Company
Reimbursables no
older than 90 days

(ii) 80% of
Eligible IBM and
InfoPrint Solution
Company
Receivables

(iii) 80% of
Eligible VAT
Receivables






Collateral Value of Stock-in-Trade





	 	 	100% of paid for IBM Printing Sytems Division or InfoPrint Solution Company inventory
(other than (a) machines which IBM Printing Systems Division or InfoPrint Solution
Company has declared obsolete at least 60 days prior to the date of determination and
(b) service parts) which (i) we have purchased the associated Supplier Invoice from the
Authorised Supplier on or after the Closing Date (ii) purchased directly from IBM or
InfoPrint Solution Company prior to the Closing Date and not subject to retention of
title, provided, however, we have a first priority security interest in such inventory,
(iii) is repurchasable under a repurchase agreement with the Authorized Supplier and
(iv) is secured and managed through a pledge with Dispostion, with coverage percentage
acceptable to us (such acceptable percentage to be determined by us within 60 days of
the date this Schedule is executed)The value to be assigned to such inventory shall be
based upon the Supplier Invoice net of all applicable credit notes.




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FINANCE CHARGES (2)




	 	 	 

	Base Rate (3)

	 	EURIBOR
	 
	 	 
	Discount Charge (5)

	 	Base Rate plus 1.82%
	 
	 	 
	Default Rate

	 	Base Rate plus 7%
	 
	 	 
	Shortfall Fee

	 	0.30% of Shortfall Amount
	 
	 	 
	Banking Transfer Charge

	 	Nil
	 
	 	 
	Service Fee per Notification

	 	N/A
	 
	 	 
	Monthly Service Fee, Set up Fee

	 	€1,500 plus VAT per month
	 
	 	 
	Survey Fee

	 	€5,000 plus VAT per IBM GF Survey
	 
	 	 
	Security Filing Fee

	 	Any fees required as a result of
Uniform Commercial Code filings in US
in connection with Collateralised
Guarantees granted by SDI, Holdings
and PFS
	 
	 	 
	Unused Line Fee

	 	Equal to thirty seven and one half
(37.5) basis points times the weekly
average unused portion of the Credit
Line, accruable from the closing date
and computed on the basis of a 360-day
year, payable quarterly in arrears and
upon the maturity or termination of
the Credit Line
	 
	 	 
	Extended Credit Charge

	 	Base Rate plus 4.13%






REPORTING




	 	 	 

	Audited Accounts (4)

	 	90 days after fiscal year
	 
	 	 
	Management (unaudited) Accounts

	 	35 days after fiscal calendar quarter
	 
	 	 
	Collateral Management Report

	 	10 days after calendar month
	 
	 	 
	Aged Creditor Report

	 	10 days after calendar month
	 
	 	 
	Stock Report

	 	10 days after calendar month
	 
	 	 
	Fixed Asset Register

	 	10 days after calendar month
	 
	 	 
	Surveys

	 	Once a year
	 
	 	 
	Financial Covenant Compliance
Certificate from both SDSA and
Holdings

	 	45 days after fiscal period
	 
	 	 
	Extended Credit Period

	 	in 10 day increments up to 30 days
	 
	 	 
	VAT Receivables report with
supporting documentation
(including breakdown of
calculations of VAT due and
deductible)

	 	20 days after calendar month






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ADDITIONAL COLLATERAL




	 	 	 

	This Agreement
	 	 
	 
	 	 
	Stock Pledge Agreement among
Supplies Distributors, Inc
(“SDI”), and IBM GF, whereby
SDI pledges 65% of its shares
in SDSA to IBM GF

	 	Amended and Restated Stock Pledge
	 
	 	 
	Liens: Charges: Pledges:
Fixed and Floating Charge over
all IBM inventory of SDSA and
Convention de Gage of SDSA to
be registered at Commercial
Court

	 	As provided by us
	 
	 	 
	Guarantees of payment of
amounts due under the
agreement.

	 	Amended and Restated Collateralised
Guarantees from PFS, Holdings, and SDI
Amended and Restated Corporate Guaranty
from PFSweb
	 
	 	 
	Amended and Restated Notes
Payable Subordination from SDI
in respect of SDSA

	 	As provided by us
	 
	 	 
	Opinion of Counsel

	 	a favourable opinion of counsel for Loan
Parties (to be provided post closing)
in substantially the form provided to
you by us satisfactory to us and from
counsel satisfactory to it;.
	 
	 	 
	Certificate of Authority

	 	a certificate of the secretary or an
assistant secretary of each Loan Party
as applicable, certifying that, among
other items, (i) SDSA and PFS Web B.V.
are duly organized under the laws of the
Kingdom of Belgium and registered to do
business there (ii) true and complete
copies of the articles of incorporation,
or corresponding organizational
documents, as applicable, and your
by-laws are delivered therewith,
together with all amendments and addenda
thereto as in effect on the date
thereof, (iii) the resolution as stated
in the certificate is a true, accurate
and compared copy of the resolution
adopted by your Board of Directors
authorizing the execution, delivery and
performance of this Agreement and each
other document executed and delivered in
connection herewith, and (iv) the names
and true signatures of your officers
authorized to sign this Agreement and
the other documents;
	 
	 	 
	Miscellaneous

	 	•   Listing of all
creditors (if any) providing accounts
receivable financing to you;

	 

	 	•   A duly executed
compliance certificate as to your
compliance with the financial covenants
set forth below as of the last fiscal
month you have published financial
statements;

	 

	 	•   A copy of an all-risk
insurance certificate pursuant to Clause
8.2.5 of the Agreement

	 

	 	•   The goods in transit
can not contain of items older than 20
working days as net collateral value in
the CMR.







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OTHER CONDITIONS



1. Valid and enforceable customary documentation for the Collateral provided by SDSA and PFS Web
B.V.



2. Any strategic changes in the structure of the group, significant management changes and/or any
major changes in Capex/investment plans to be advised to IBM GF immediately.



3. Prepayments under the Platinum Plan are not to be used for early repayment of commercial loans.



4. The Financial Statements of SDSA and BSDA as of Closing Date in form and substance satisfactory
to us in our sole discretion;



5. A certified copy of the current organization chart of Loan Parties;



6. Evidence satisfactory to us that UCC-1 statements have been filed against SDI, Holdings and PFS
with IBM GF as the Lien holder;



7. IBM Credit is satisfied that all conditions precedent in accordance with the AIF have been met.




FINANCIAL COVENANTS



SDSA will be required, on a consolidated basis, to maintain the following
financial ratios, percentages and amounts on a year to date basis as of
the last day of the fiscal period under review (quarterly and annually) by
us and IBM Credit:




	 	 	 	 	 
	 	 	Covenant	 	Covenant Requirement
	(i)

	 	Debt to Tangible Net Worth
	 	Greater than Zero and

Less than 7.0:1.0
	 
	 	 	 	 
	(ii)

	 	Net Profit after Tax to Revenue
	 	Greater than 0.10 percent
	 
	 	 	 	 
	(iii)

	 	Working Capital Turnover (WCTO)
	 	Greater than Zero and

Less than 37.0:1.0





PFSweb, Inc. will be required to maintain the following financial
ratios, percentages and amounts as of the last day of the fiscal
period under review ( quarterly and annually) by IBM Credit:




	 	 	 	 	 
	 	 	Covenant	 	Covenant Requirement
	(v)

	 	Tangible Net Worth
	 	Greater than $18,000,000.00 for
period ending 03/31/10 and
beyond.






FINANCIAL COVENANT DEFINITIONS



The following terms shall have the following respective meanings in this Schedule. All amounts
shall be determined in accordance with generally accepted accounting principles (GAAP).





“Consolidated Net Income” shall mean, for any period, the consolidated net income (or loss),
after taxes, of SDSA on a consolidated basis for such period determined in accordance with
GAAP.




“Current” shall mean within the ongoing twelve-month period.




“Current Assets” shall mean assets that are cash or expected to become cash within the
ongoing twelve months.



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“Current Liabilities” shall mean payment obligations resulting from past or current
transactions that require settlement within the ongoing twelve-month period. All
indebtedness to IBM GF shall be considered a Current Liability for purposes of determining
compliance with the Financial Covenants.




“Debt” shall mean all liabilities or obligations to pay another person/company a certain
amount at a specified date excluding subordinated debt.




“Long Term” shall mean beyond the ongoing twelve-month period.




“Long Term Assets” shall mean assets that take longer than a year to be converted to cash.
They are divided into four categories: tangible assets, investments, intangibles and other.




“Long Term Debt” shall mean payment obligations of indebtedness which mature more than
twelve months from the date of determination, or mature within twelve months from such date
but are renewable or extendible at the option of the debtor to a date more than twelve
months from the date of determination.




“Net Profit after Tax” shall mean Revenue plus all other income, minus all costs (excluding
amortization of good will), including applicable taxes, excluding currency adjustments for
each period (other than for annual periods to the extent required by GAAP).




“Revenue” shall mean the monetary expression of the aggregate of products or services
transferred by an enterprise to its customers (excluding intercompany transactions) for
which said customers have paid or are obligated to pay, plus other income as allowed.




“Subordinated Debt” shall mean SDSA’s indebtedness to third parties as evidenced by an
executed Notes Payable Subordination Agreement in favor of IBM GF (all Subordinated Debt
shall not be considered Current Liabilities).




“Tangible Net Worth” shall mean Total Net Worth minus goodwill




“Total Assets” shall mean the total of Current Assets and Long Term Assets.




“Total Liabilities” shall mean the Current Liabilities and Long Term Debt less Subordinated
Debt, resulting from past or current transactions, that require settlement in the future.




“Total Net Worth” (the amount of owner’s or stockholder’s ownership in an enterprise) is
equal to Total Assets minus Total Liabilities.




“Working Capital” shall mean Current Assets minus Current Liabilities.




“Working Capital Turnover (WCTO)” shall mean annualised Revenue divided by Working Capital.



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Addresses



Pursuant to Clause 11.9 of the Agreement, the following are the addresses of the parties to the
Agreement:




	 	 	 

	(i) if to IBM GF:

	 	
	 
	 	 
	IBM Belgium Financial Services BVBA/SPRL.

	 	
	Avenue du Bourget 42

	 	
	B-1130 Brussels

	 	
	Belgium

	 	
	VAT BE 424300467
	 	 
	 
	 	 
	(ii) if to SDSA:
	 	 
	 
	 	 
	Supplies Distributors S.A.
	 	 
	Rue Louis Blériot 5
	 	 
	B-4460 Grâce-Hollogne
	 	 
	Belgium
	 	 
	 
	 	 
	(iii) if to PFS Web B.V.
	 	 
	 
	 	 
	PFS Web B.V. SPRL
	 	 
	c/o SDSA
	 	 






Footnotes:





	(1)	 	All charges are exclusive of any taxes and duties. You agree to pay all applicable taxes and
duties.
	 
	(2)	 	“EURIBOR”, is the one month rate for Euros determined by the Banking Federation of the
European Union appearing on Reuters page 01 at or about 11:00 am (Central European Time) on
the relevant day. “Reuters page 01” means the display designated as “Page 01” on the Reuters
Service (or such other page as may replace Page 01 on that service or such other service as
may replace it). On the first Business Day of a calendar month the Base Rate will be changed
to EURIBOR appearing for the last Business Day of the previous calendar month. If at any time,
EURIBOR changes by 0.25% or more, the Base Rate will be changed by the same amount on the day
of such change or the next following Business Day. Charges accruing from day to day will be
calculated on the basis of a year of 360 days and the actual number of days elapsed. If the
Due Date for payment in Euros is not a day on which settlement in Euros can be effected, the
payment will be made on the preceding Business Day on which settlement can be effected.
	 
	(3)	 	Audited Accounts within 90 days of fiscal year end. Revised business plans/budgets will also
be required at this time to enable an annual facility and covenant review to be effected by
us.




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By signing below all parties accept the terms of the Schedule. This Schedule amends and replaces
any Schedule issued and/or dated previously to this one.




	 	 	 	 	 	 	 

	Signed on behalf of	 	Signed on behalf of
	 
	 	 	 	 	 	 
	SUPPLIES DISTRIBUTORS S.A.	 	IBM BELGIUM FINANCIAL SERVICES BVBA/SPRL
	 
	 	 	 	 	 	 
	TVA BE 475.286.142	 	TVA BE 424.300.467
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signed:

	 	 

	 	Signed:
	 	 

	 
	 	 	 	 	 	 
	By Name:

	 	 

	 	By Name:
	 	 

	 
	 	 	 	 	 	 
	Title:

	 	 

	 	Title:
	 	 

	 
	 	 	 	 	 	 
	Signature:

	 	 

	 	Signature:
	 	 

	 
	 	 	 	 	 	 
	Date:

	 	 

	 	Date:
	 	 

	 
	 	 	 	 	 	 
	PFS WEB B. V. SPRL	 	 	 	 
	 
	 	 	 	 	 	 
	Signed:

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	By Name:

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Signature:

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	 
	 	 	 	 







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