Document:

exv10w85

Agreement for IBM Global Financing Platinum Plan

Invoice Discounting Schedule

Supplies Distributors S.A.

	 	 	 	 	 	 	 	 	 
	Your Name
	 	Supplies	 	Schedule Number	 	8	 	 
	 
	 	Distributors S.A.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Your Number	 	SDSA — RC Liege
208795	 	Effective date of
Schedule	 	27 March 2008
	 
	 	 	 	 	 	 	 	 
	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 (1)
	 
	 	 	 	 	 	(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.

Definitions or terms in the Agreement that describe or relate to inventory and amounts
calculated in relation thereto shall be read from the date hereof in relation to future
dealings as referring to dealings in respect of inventory with Infoprint Solutions
United Kingdom Ltd or Infoprint Solutions Company LLC (as the case may be) and not with
entities in the IBM Group of Companies and where applicable “Infoprint” shall replace
“IBM”.

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FINANCE CHARGES (2)

	 	 	 
	Base Rate (3)

	 	EURIBOR
	 
	 	 
	Discount Charge (5)

	 	Base Rate plus 1.5.%
	 
	 	 
	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 1.5%
	 
	 	 
	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.

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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 43.0:1.0

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 03/31/08 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 S.A.

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 S.A.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	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:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 	 	 

7 of 7exv10w86

SIXTH AMENDMENT TO FIRST AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

     THIS SIXTH AMENDMENT TO FIRST AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (herein called
this “Amendment”) made as of the 27th day of March, 2008 by and between Priority Fulfillment
Services, Inc. (“Borrower”) and Comerica Bank (“Bank”),

WITNESSETH:

     WHEREAS, Borrower and Bank have entered into that certain First Amended and Restated Loan and
Security Agreement dated as of December 29, 2004 (as from time to time amended or modified, the
“Original Agreement”) for the purposes and consideration therein expressed, pursuant to which Bank
became obligated to make loans to Borrower as therein provided; and

     WHEREAS, Borrower and Bank desire to amend the Original Agreement to provide for term loans
and for the other purposes set forth herein;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein and in the Original Agreement, in consideration of the loans which may hereafter
be made by Bank to Borrower, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I.

Definitions and References

     ’ 1.1 Terms Defined in the Original Agreement. Unless the context otherwise requires
or unless otherwise expressly defined herein, the terms defined in the Original Agreement shall
have the same meanings whenever used in this Amendment.

     ’ 1.2. Other Defined Terms. Unless the context otherwise requires, the following
terms when used in this Amendment shall have the meanings assigned to them in this ‘ 1.2.

     “Amendment” means this Sixth Amendment to First Amended and Restated Loan and
Security Agreement.

     “Loan Agreement” means the Original Agreement as amended hereby.

 

 

ARTICLE II.

Amendments to Original Agreement

     ’ 2.1 Defined Terms.

     (a) The definition of “Revolving Maturity Date” in Exhibit A to the Original Agreement is
hereby amended in its entirety to read as follows:

     “Revolving Maturity Date” means April 1, 2009.

     (b)
 The definition of “Inflow Transfer”  in Exhibit A to the Original
Agreement is hereby amended in its entirety to read as follows:

     “Inflow Transfer” means the receipt by Borrower
 of cash payments after March 27, 2008, which are dividend payments or subordinated debt payments from BSD Holdings, Inc. or
interest payments from SPRL PFSweb B.V.

     (c) Clauses (c), and (n)  of the definition of “Permitted Indebtedness”
in Exhibit A to the Original Agreement are hereby amended in their entirety to read as follows:

     (c) Indebtedness secured by a lien described in clause (c) of the defined term
“Permitted Liens”, provided (i) such Indebtedness does not exceed the lesser of the cost or
fair market value at acquisition date of the equipment financed with such Indebtedness and
(ii) the aggregate amount of such Indebtedness incurred in (1) Borrower’s fiscal year 2008
shall not exceed $5,000,000 and (2) each fiscal year of Borrower thereafter, shall not
exceed $4,000,000.

     (n) Intentionally omitted.

     
d) The definition of “Indebtedness” in Exhibit A to the Original Agreement is
hereby amended by adding thereto: “provided, however, transactions occurred in the ordinary
course of business between Borrower and SPRL PFSweb B.V., Priority Fulfillment Services of Canada,
Inc., eCOST Philippine Services LLC, PFSM, LLC and eCOST.com shall not constitute “Indebtedness.”

 

 

     (e) Clauses (e), (j) and (p) of the definition of “Permitted
Investment” in Exhibit A to the Original Agreement are hereby amended in their entirety to read as
follows:

	 	(e)	 	Advances by Borrower to Supplies Distributor, Inc. pursuant to
the Subordinated Demand Note, so long as (1) the aggregate outstanding
principal amount of such Indebtedness does not exceed $6,500,000 (excluding
accrued and unpaid interest) at any time, and (2) before and after giving
effect to such advances no Event of Default has occurred and is continuing;

	 	(f)	 	Incremental Investments by Borrower in or advances to SPRL
PFSweb B.V., Priority Fulfillment Services of Canada, Inc., eCOST Philippine
Services LLC, PFSM, LLC and eCOST.com, in an amount equal to the sum of (i) 50%
of the first $4,400,000 in Inflow Transfers plus (ii) the amount of all Inflow
Transfers in excess of $4,400,000, provided, that (1) the aggregate amount of
all Investments made by Borrower between March 27, 2008 and the
Revolving Maturity Date pursuant to this clause (f) does not exceed $3,260,000,
and (2) at the time of each such incremental Investment and after giving effect
thereto, no Event of Default has occurred and is continuing.
	 
	 	(j)	 	Intentionally omitted;
	 
	 	(p)	 	Intentionally omitted.

     (f) Clause (j) of the definition of “Eligible Accounts” in Exhibit A to the
Original Agreement are hereby amended in their entirety to read as follows:

     (j)Accounts with respect to which United States Mint is the account
debtor, to the extent that its total obligations to Borrower exceed 40% of all
Accounts, except as approved in writing by Bank;

     ’ 2.2 Financial Statements. The due dates for the financial statements due for the
calendar month of January 2008 under Section 6.2(a) of the Original Agreement are hereby extended
to April 4, 2008.

     ’ 2.3 Financial Covenants.

     (a) Liquidity Ratio. Section 6.7(a) of the Original Agreement is hereby amended in
its entirety to read as follows:

     (a) Liquidity Ratio. A ratio of (i) Cash (including all pledged Cash with Bank
for repayment of the Bonds) plus Eligible Accounts plus OLV (as defined below) to (ii)

 

 

all Indebtedness to Bank of at least 1.25 to 1.00. As used herein, the term “OLV”
means an amount equal to (i) for the calendar year 2008, $1,700,000, (ii) for the calendar
year 2009, $1,025,000, (iii) for the calendar year 2010, $700,000, and (iv) for all periods
ending after the calendar year 2010, zero.

     (b) EBITDA. Section 6.7(d) of the Original Agreement is hereby amended in its
entirety to read as follows:

     (d) EBITDA. As of the last day of each calendar month, the variance, if
negative, then expressed as a positive number, between Borrower’s EBITDA and the EBITDA set
forth in the Approved Projections for the twelve (12) calendar month period ending on such
date, shall not exceed $1,000,000. As used herein, “EBITDA” shall mean, for any period of
calculation, Borrower’s earnings for such period before interest and taxes plus
depreciation, amortization and non-cash stock compensation accruals to the extent deducted
in the calculation of such earnings. “Approved Projections” means for any period of time,
the projections for such period that have been approved by Borrower’s Board of Directors and
delivered to Bank. Borrower shall deliver to Bank (i) a preliminary draft of the
projections for the next fiscal year of Borrower by January 31 of each year and (ii) the
updated projections approved by Borrower’s Board of Directors for the next fiscal year not
later than March 10 of each year.

     ’ 2.4 Negative Covenants.

     (a) Capital Expenditures. Section 7.12 of the Original Agreement is hereby amended in
its entirety to read as follows:

     7.12 Capital Expenditures. Make capital expenditures in an aggregate amount
greater than (a) $5,000,000 in Borrower’s fiscal year 2008, provided that the aggregate
amount of such expenditures purchased with cash (and not financed) shall
not exceed $2,000,000, and (b) $4,000,000 in each fiscal year of Borrower thereafter,
provided that the aggregate amount of such expenditures in each fiscal year
purchased with cash (and not financed) shall not exceed $1,000,000. As
used herein, the term “capital expenditures” does not include (i) any software that is
internally developed by Borrower, whether or not Borrower capitalized the development costs,
and (ii) any equipment ordered, but not yet accepted or paid for, by Borrower.

     (b) Outgoing Wires. Section 7.13 of the Original Agreement is hereby amended in its
entirety to read as follows:

     7.13 Intentionally Omitted.

 

 

ARTICLE III.

Conditions of Effectiveness

     ’ 3.1. Effective Date. This Amendment shall become effective as of the date first
above written when and only when Bank shall have received, at Bank’s office, (a) a counterpart of
this Amendment executed and delivered by Borrower and (b) an amendment fee paid in good and
immediately available funds in the amount of $10,000, which fee shall be fully earned on the date
hereof.

ARTICLE IV.

Representations and Warranties

     ’ 4.1. Representations and Warranties of Borrower. In order to induce Bank to enter
into this Amendment, Borrower represents and warrants to Bank that:

     (a) The representations and warranties contained in Article 5 of the Original Agreement
are true and correct at and as of the time of the effectiveness hereof; provided Bank
acknowledges that Borrower has heretofore given written notice to Bank of the matters set
forth in Schedule 1 attached hereto.

     (b) Borrower is duly authorized to execute and deliver this Amendment and is and will
continue to be duly authorized to borrow and to perform its obligations under the Loan
Agreement. Borrower has duly taken all corporate action necessary to authorize the
execution and delivery of this Amendment and to authorize the performance of the obligations
of Borrower hereunder.

     (c) The execution and delivery by Borrower of this Amendment, the performance by
Borrower of its obligations hereunder and the consummation of the transactions contemplated
hereby do not and will not conflict with any provision of law, statute, rule or regulation
or of the organizational documents of Borrower, or of any material agreement, judgment,
license, order or permit applicable to or binding upon Borrower, or result in the creation
of any lien, charge or encumbrance upon any assets or properties of Borrower. Except for
those which have been duly obtained, no consent, approval, authorization or order of any
court or governmental authority or third party is required in connection with the execution
and delivery by Borrower of this Amendment or to consummate the transactions contemplated
hereby.

     (d) When duly executed and delivered, each of this Amendment and the Loan Agreement
will be a legal and binding instrument and agreement of Borrower, enforceable in accordance
with its terms, except as limited by bankruptcy, insolvency and similar laws applying to
creditors’ rights generally and by principles of equity applying to creditors’ rights
generally.

 

 

ARTICLE V

Miscellaneous

     ’ 5.1. Ratification of Agreements. The Original Agreement as hereby amended is
hereby ratified and confirmed in all respects. Any reference to the Loan Agreement in any Loan
Document shall be deemed to be a reference to the Original Agreement as hereby amended. The
execution, delivery and effectiveness of this Amendment shall not, except as expressly provided
herein, operate as a waiver of any right, power or remedy of Bank under the Loan Agreement or any
other Loan Document nor constitute a waiver of any provision of the Loan Agreement or any other
Loan Document.

     ’ 5.2. Survival of Agreements. All representations, warranties, covenants and
agreements of Borrower herein shall survive the execution and delivery of this Amendment and the
performance hereof, including without limitation the making or granting of the Advances, and shall
further survive until all of the Obligations are paid in full. All statements and agreements
contained in any certificate or instrument delivered by Borrower hereunder or under the Loan
Agreement to Bank shall be deemed to constitute representations and warranties by, or agreements
and covenants of, Borrower under this Amendment and under the Loan Agreement.

     ’ 5.3. Loan Documents. This Amendment is a Loan Document, and all provisions in the
Loan Agreement pertaining to Loan Documents apply hereto.

     ’ 5.4. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of California and any applicable laws of the United States of
America in all respects, including construction, validity and performance.

     ’ 5.5. Counterparts. This Amendment may be separately executed in counterparts and
by the different parties hereto in separate counterparts, each of which when so executed shall be
deemed to constitute one and the same Amendment.

     THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.

     IN WITNESS WHEREOF, this Amendment is executed as of the date first above written.

	 	 	 	 	 
	 	PRIORITY FULFILLMENT SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

CONSENT AND AGREEMENT

     PFSWEB, INC., a Delaware corporation, hereby consents to the provisions of this Amendment and
the transactions contemplated herein, and hereby ratifies and confirms the Guaranty dated as of
December 29, 2004, made by it for the benefit of Bank, and agrees that its obligations and
covenants thereunder are unimpaired hereby and shall remain in full force and effect.

	 	 	 	 	 
	 	PFSWEB, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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