Document:

exv10w2

Exhibit 10.2

AMENDMENT NO. 12

TO

AGREEMENT FOR INVENTORY FINANCING

     This Amendment No. 12 (“Amendment”) to the Agreement for Inventory Financing is made as
of March 30, 2011 by and among IBM Credit LLC, a Delaware limited liability company (“IBM Credit”),
Business Supplies Distributors Holdings, LLC, a limited liability company duly organized under the
laws of the state of Delaware (“Holdings”), Supplies Distributors, Inc. (formerly known as BSD
Acquisition Corp.), a corporation duly organized under the laws of the state of Delaware
(“Borrower”), Priority Fulfillment Services, Inc., a corporation duly organized under the laws of
the state of Delaware (“PFS”) and PFSweb, Inc., a corporation duly organized under the laws of the
state of Delaware (“PFSweb”) (Borrower, Holdings, PFS, PFSweb, and any other entity that executes
this Agreement or any Other Document, including without limitation all Guarantors, are each
individually referred to as a “Loan Party” and collectively referred to as “Loan Parties”).

RECITALS:

     A. Each Loan Party and IBM Credit have entered into that certain Agreement for Inventory
Financing dated as of March 29, 2002 (as amended, supplemented or otherwise modified from time to
time, the “Agreement”); and

     B. The parties have agreed to modify the Agreement as more specifically set forth below, upon
and subject to the terms and conditions set forth herein.

AGREEMENT

     NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Borrower, the other Loan Parties and IBM
Credit hereby agree as follows:

Section 1. Definitions. All capitalized terms not otherwise defined herein shall have the
respective meanings set forth in the Agreement.

Section 2. Amendment.

     Subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, the
Agreement is hereby amended as follows:

     A. The definition of “Termination Date” is amended and restated in its entirety to read as
follows:

“Termination Date”: shall mean March 31, 2012 or such other date as IBM Credit and the Loan
Parties may agree to in writing from time to time.

     B. Section 8.6 of the Agreement is hereby amended by amending this Section to read in its
entirety as follows:

“8.6. Restricted Payments. Borrower will not, directly or indirectly make any of the
following payments (“Restricted Payments”) without prior written consent from IBM Credit, which
shall not be unreasonably delayed or denied: (i) declare or pay any dividend (other than dividends
payable solely in common stock of Borrower) on, or make any payment on account of, or set apart
assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement
or other acquisition of, any shares of any class of capital stock of Borrower or any warrants,
options or rights to purchase any such capital stock or Equity Interests, whether now or hereafter
outstanding, or make any other distribution in respect thereof,

					
	 	 	 	 	 
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either directly or indirectly, whether in cash or property or in obligations of Borrower; or (ii) make any
optional payment or prepayment on or redemption (including, without limitation, by making payments
to a sinking or analogous fund) or repurchase of any Indebtedness (other than the Obligations),
provided, however, that Borrower (a) may in the ordinary course of administration thereof
make payments on the revolving loans made by Wells Fargo Bank, National Association, acting through
its Wells Fargo Business Credit operating division (as successor to Wachovia Bank, National
Association, which, in turn, was successor to Congress Financial Corporation (Southwest) (“Wells
Fargo”), pursuant to the Congress Credit Agreement, as permitted by the Amended and Restated Notes
Payable Subordination Agreement; (b) may in calendar year 2011 pay cash dividends not to exceed one
hundred percent of Borrower’s calendar year 2010 net income according to GAAP, plus all cash
dividends received from its subsidiaries; and (c) may permit Supplies Distributors of Canada, Inc.
to make a one-time payment in an amount not to exceed Four Hundred Thousand Dollars ($400,000.00)
in 2011. Holdings is also permitted to pay cash dividends in calendar year 2011 equal to all cash
dividends it receives in calendar year 2011 from its subsidiaries provided such distributions do
not cause an event of default.

     C. Attachment A to the Agreement is hereby amended by deleting such Attachment A in its
entirety and substituting, in lieu thereof, the Attachment A attached hereto. Such new Attachment
A shall be effective as of the date specified in the new Attachment A. The changes contained in
the new Attachment A include, without limitation, the following:

(i) Section II. Fees, Rates and Repayment Terms, subsection (A) is amended and restated in its
entirety to read as follows:

	(A)	 	Credit Line: Twenty-five Million Dollars ($25,000,000)     In
the event that the amount of any Participation is reduced or     any
Participation Agreement expires or is terminated for any reason,
the Credit Line shall be reduced, upon forty-five (45) days written
notice by IBM Credit to Borrower, by an amount equal to the amount
that is no longer subject to a Participation Agreement as determined
by IBM Credit pursuant to Section 2.1 of the Agreement.

Section 3. Conditions of Effectiveness of Amendment. This Amendment shall become effective upon
the receipt by IBM Credit of this Amendment which shall have been authorized, executed and
delivered by each of the parties hereto and IBM Credit shall have received a copy of a fully
executed Amendment.

Section 4. Representations and Warranties. Each Loan Party makes to IBM Credit the following
representations and warranties all of which are material and are made to induce IBM Credit to enter
into this Amendment.

Section 4.1 Accuracy and Completeness of Warranties and Representations. All representations made
by the Loan Party in the Agreement were true and accurate and complete in every respect as of the
date made, and, as amended by this Amendment, all representations made by the Loan Party in the
Agreement are true, accurate and complete in every material respect as of the date hereof, and do
not fail to disclose any material fact necessary to make representations not misleading.

Section 4.2 Violation of Other Agreements and Consent. The execution and delivery of this
Amendment and the performance and observance of the covenants to be performed and observed
hereunder (a) do not violate or cause any Loan Party not to be in compliance with the terms of any
agreement to which such Loan Party is a party, and (b) require the consent of any Person.

Section 4.3 Litigation. Except as has been disclosed by the Loan Parties to IBM Credit in writing,
there is no litigation, proceeding, investigation or labor dispute pending or threatened against
any Loan Party, which, if adversely determined, would materially adversely affect the Loan Party’s
ability to perform such

					
	 	 	 	 	 
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Loan Party’s obligations under the Agreement and the other documents, instruments and agreements
executed in connection therewith or pursuant hereto.

Section 4.4 Enforceability of Amendment. This Amendment has been duly authorized, executed and
delivered by each Loan Party and is enforceable against each Loan Party in accordance with its
terms.

Section 5. Ratification of Agreement. Except as specifically amended hereby, all of the provisions
of the Agreement shall remain unamended and in full force and effect. Each Loan Party hereby
ratifies, confirms and agrees that the Agreement, as amended hereby, represents a valid and
enforceable obligation of such Loan Party, and is not subject to any claims, offsets or defenses.

Section 6. Ratification of Guaranty and Notes Payable Subordination Agreement. Each of Holdings,
PFSweb and PFS hereby ratify and confirm their respective guaranties in favor of IBM Credit and
agree that such guaranties remain in full force and effect and that the term “Liabilities”, as used
therein include, without limitation the indebtedness liabilities and obligations of the Borrower
under the Agreement as amended hereby.

Section 7. Governing Law. This Amendment shall be governed by and interpreted in accordance with
the laws which govern the Agreement.

Section 8. Counterparts. This Amendment may be executed in any number of counterparts, each of
which shall be an original and all of which shall constitute one agreement.

     IN WITNESS WHEREOF, each Loan Party has read this entire Amendment, and has caused its
authorized representatives to execute this Amendment and has caused its corporate seal, if any, to
be affixed hereto as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 

	IBM Credit LLC	 	Supplies Distributors, Inc.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Print Name: 	 	 	 	 	Print Name: 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	Business Supplies Distributors Holdings, LLC	 	Priority Fulfillment Services, Inc.
	 
	 	 	 	 	 	 	 	 	 	 
	By:                                        as Managing Member	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Print Name: 	 	 	 	 	Print Name: 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PFSweb, Inc.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Print Name: 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 

					
	 	 	 	 	 
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Attachment A (“Attachment A”) TO

AGREEMENT FOR INVENTORY FINANCING

DATED MARCH 29, 2002

EFFECTIVE DATE OF THIS ATTACHMENT A: March 30, 2011

SECTION I. BORROWER/LOAN PARTIES:

	 	 	 	 	 
	 	 	ORGANIZATION NO. (Assigned by State of Org).
	(A) BORROWER:
	 	 	 	 
	 
	 	 	 	 
	Supplies Distributors, Inc.
	 	 	3416326	 
	 
	 	 	 	 
	(B) ADDITIONAL LOAN PARTIES:
	 	 	 	 
	 
	 	 	 	 
	Business Supplies Distributors Holdings, LLC
	 	 	3410894	 
	Priority Fulfillment Services, Inc.
	 	 	2606094	 
	PFSweb, Inc.
	 	 	3062550	 

SECTION II. FEES, RATES AND REPAYMENT TERMS:

	 
	 	(A)	 	Credit Line: Twenty-five Million Dollars ($25,000,000)

In
the event that the amount of any Participation is reduced or any
Participation Agreement expires or is terminated for any reason, the
Credit Line shall be reduced, upon forty-five (45) days written notice by
IBM Credit to Borrower, by an amount equal to the amount that is no longer
subject to a Participation Agreement as determined by IBM Credit pursuant
to Section 2.1 of the Agreement.
	 
	 	(B)	 	Borrowing Base:
	 
	 	(i)	 	100% of the Borrower’s inventory in the Borrower’s possession as of
the date of determination as reflected in the Borrower’s most recent
Collateral Management Report constituting Products (other than service
parts) financed through a Product Advance by IBM Credit, so long as (1)
IBM Credit has a first priority security interest in such Products and (2)
such Products are in new and un-opened boxes;
	 
	 	(ii)	 	80% of price protection payments, credits, discounts, incentive
payments, rebated and refunds relating to IBM Products (“Accounts”) in the
aggregate not to exceed Two Million Five Hundred Thousand Dollars
($2,500,000.00) provided that (i) Borrower obtains (and provides to IBM
Credit along with the monthly Collateral Management Report required under
Section 7.1 (O)) from IBM written confirmation (a) acknowledging the
obligation of IBM to pay such amount or that they have received the
billing from the Borrower, (b) stating the date the amount is due to be
paid and (c) IBM waiving its right to setoff such amounts owed to Borrower
with any amount Borrower may owe to IBM, (ii) such Accounts do not remain
unpaid for more than sixty (60) days from the date the obligation of IBM
occurred; and (iii) such Accounts are delivered directly to IBM Credit.
	 
	 	(C)	 	Product Financing Charge: Prime Rate plus 0.50%
	 
	 	(D)	 	Product Financing Period: 90 days
	 
	 	(E)	 	Collateral Insurance Amount: Twenty-five Million Dollars ($25,000,000.00)
	 
	 	(F)	 	PRO Finance Charge: Prime Rate plus 0.50%

					
	 	 	 	 	 
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	 	(G)	 	Delinquency Fee Rate: Prime Rate plus 6.500%
	 
	 	(I)	 	Free Financing Period Exclusion Fee: Product Advance multiplied by 0.25%
	 
	 	(J)	 	Other Charges:
	 
	 		 	(i) Monthly Service Fee: $1,000.00
	 
	 		 	(ii) Annual Renewal Fee: $15,000.00

SECTION III. FINANCIAL COVENANTS:

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

“Consolidated Net Income” shall mean, for any period, the net income (or loss), after taxes,
of Borrower 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, restricted cash applicable to cash
received into a lockbox from collections of trade accounts receivable or expected to become
cash within the ongoing twelve months.

“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 Credit and Congress shall be considered a Current Liability for purposes
of determining compliance with the Financial Covenants. All subordinated indebtedness shall
not be considered current liabilities.

“EBITDA” shall mean, for any period (determined on a consolidated basis in accordance with
GAAP), (a) the Consolidated Net Income of Borrower for such period, plus (b) each of the
following to the extent reflected as an expense in the determination of such Consolidated
Net Income: (i) the Borrower’s provisions for taxes based on income for such period; (ii)
Interest Expense for such period; and (iii) depreciation and amortization of tangible and
intangible assets of Borrower for such period.

“Fixed Charges” shall mean, for any period, an amount equal to the sum, without duplication,
of the amounts for such as determined for the Borrower on a consolidated basis, of (i)
scheduled repayments of principal of all Indebtedness (as reduced by repayments thereon
previously made), (ii) Interest Expense, (iii) capital expenditures (iv) dividends, (v)
leasehold improvement expenditures and (vi) all provisions for U.S. and non U.S. Federal,
state and local taxes.

“Fixed Charge Coverage Ratio” shall mean the ratio as of the last day of any fiscal period
of (i) EBITDA as of the last day of such fiscal period to (ii) Fixed Charges.

“Interest Expense” shall mean, for any period, the aggregate consolidated interest expense
of Borrower during such period in respect of Indebtedness determined on a consolidated basis
in accordance with GAAP, including, without limitation, amortization of original issue
discount on any Indebtedness and of all fees payable in connection with the incurrence of
such Indebtedness (to the extent included in interest expense), the interest portion of any
deferred payment obligation and the interest component of any capital lease obligations.

“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.

					
	 	 	 	 	 
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“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, including
applicable taxes.

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

“Subordinated Debt” shall mean Borrower’s indebtedness to third parties as evidenced by an
executed Notes Payable Subordination Agreement in favor of IBM Credit.

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

“Total Assets” shall mean the total of Current Assets and Long Term Assets. For the purpose
of calculating Total Assets for Borrower, the accumulated earnings and foreign currency
translation adjustments applicable to Borrower’s Canadian and European subsidiaries are
excluded.

“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. For the purpose of calculating Total Net
Worth of Borrower, following shall be excluded (i) accumulated earnings and unrealized
foreign currency translation adjustments applicable to Borrower’s Canadian and European
subsidiaries and (ii) all income and losses applicable to foreign currency adjustments for
each period but not excluding such foreign currency adjustments for annual periods that must
comply with GAAP.

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

     (B) 1. Borrower will be required to maintain the following financial ratios, percentages and
amounts as of the last day of the fiscal period under review (quarterly, annually) by IBM Credit:

	 	 	 	 	 
	 	 	Covenant	 	Covenant Requirement
	(i)

	 	Revenue on an Annual Basis* (i.e. the current
fiscal year-to-date Revenue annualized)
to Working Capital
	 	Greater than Zero and
Equal to or Less than 37.0:1.0
	 
	 

	 	* Annualized Revenue from intercompany sales
are excluded from this calculation.	 	 
	 
	 	 	 	 
	(ii)

	 	Net Profit after Tax to Revenue**
	 	Equal to or Greater than
0.20 percent
	 
	 

	 	** Excluding all income and losses applicable
to (a) 100% ownership in Canadian and
European subsidiaries and (b) foreign
currency adjustments for each period but not
excluding such foreign currency adjustments
for annual periods that must comply with
GAAP and excluding revenue from intercompany
sales.	 	 

					
	 	 	 	 	 
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	 	 	Covenant	 	Covenant Requirement
	(iii)

	 	Total Liabilities to Tangible Net Worth***

***Accumulated earnings and unrealized
foreign currency translation adjustments
applicable to Borrower’s Canadian and
European subsidiaries are excluded from
calculation of Borrower’s Total Assets and
Total Net Worth.
	 	Greater than Zero and
Equal to or Less than 7.0:1.0

     2. Business Supplies Distributors Holdings, LLC will be required to maintain the following
financial ratios, percentages and amounts as of the last day of the fiscal period under review
(quarterly, annually) by IBM Credit:

	 	 	 	 	 
	 	 	Covenant	 	Covenant Requirement
	(i)

	 	Revenue on an Annual Basis (i.e. the current
fiscal year-to-date Revenue annualized)
to Working Capital
	 	Greater than Zero and
Equal to or Less than 37.0:1.0
	 
	 	 	 	 
	(ii)

	 	Net Profit after Tax to Revenue*

*Excluding all (a) income and
losses applicable to foreign currency
adjustments for each period but not
excluding such foreign currency adjustments
for annual periods that must comply with
GAAP and (b) revenue from intercompany
sales.
	 	Equal to or Greater than
0.15 percent
	 
	 	 	 	 
	(iii)

	 	Total Liabilities to Tangible Net Worth
	 	Greater than Zero and
Equal to or Less than 7.0:1.0

     3. 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, annually) by IBM Credit:

	 	 	 	 	 	 	 	 	 
	Covenant	 	Covenant Requirement	 	As of Date
	Minimum Tangible Net Worth
	 	$	18,000,000.00	 	 	03/31/03 and thereafter

					
	 	 	 	 	 
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	 	03.30.11exv10w3

Exhibit 10.3

AMENDMENT 11

TO

AMENDED AND RESTATED PLATINUM PLAN AGREEMENT (WITH INVOICE DISCOUNTING)

     This Amendment 11 (“Amendment”) dated March 31, 2011 is made to the AMENDED AND RESTATED
PLATINUM PLAN AGREEMENT (WITH INVOICE DISCOUNTING) by and among IBM BELGIUM FINANCIAL SERVICES
B.V.B.A.., with a registered number of R.C. Brussels 451.673 with an address of Avenue du Bourget
42, BE- 1130 Brussels VAT BE 424300467 (“IBM GF” or “us”), Suppliers Distributors S.A. with a
registered number of RC Liege 208795 with an address of Rue Louis Blériot 5, B-4460
Gráce-Hollogne, Belgium (“SDSA” or “you”), and PFS Web B.V. SPRL a company registered in The
Netherlands, having the statutory seat in Amsterdam under the number 17109541, and having the
administration and direction seat in Grace Hollogne, with a Belgian trade registration number of
R.C. Liege 204162, VAT BE 466681054 (“PFS Web B.V.”) (SDSA and PFS Web B.V. collectively, the
“Loan Parties”)

RECITALS:

     A. The Loan Parties and IBM GF have entered into that certain AMENDED AND RESTATED PLATINUM
PLAN AGREEMENT (WITH INVOICE DISCOUNTING) dated as of March 29, 2002 (as amended and modified from
time to time, the “Agreement”);

     B. The Loan Parties have requested and IBM GF has agreed to extend the Agreement for twelve
months;

     C. The Loan Parties agree to certain financial covenants revisions by IBM GF; and

     D. The parties have agreed to modify the Agreement as more specifically set forth
below,

     upon and subject to the terms and conditions set forth herein.

AGREEMENT

     NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, IBM GF and the Loan Parties hereby agree
as follows:

Section 1. Definitions. All capitalized terms not otherwise defined herein shall have the
respective meanings set forth in the Agreement.

Section 2. Amendment. Subject to Section 4 hereof, the Agreement is hereby amended as follows:

     A. The Agreement is hereby amended as follows:

     (a) Section 1.1 is hereby amended by adding the following definition:

“Termination
Date”: means March 31, 2012 or such other date as to which IBM GF and the Loan Parties may agree from time to time.

     (b) Section 8.2.7 is hereby amended by deleting it in its entirety and substituting, in lieu
thereof, the following:

					
	 	 	 	 	 
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	 	31-03-10

 

 

“ Financial Covenants

You agree to comply with the Financial Covenants, if any, set out in the relevant supplements
or the Schedule. You also agree that you will not, without our consent, make any of the following
payments (“Restricted Payments”) without our prior written consent (i) declare or pay any dividend
(other than dividends payable solely in common stock of SDSA and the aggregate amount of such
dividends under this Agreement and the AIF does not cause you or Holdings to violate such Financial
Covenants on, or make any payment on account of, or set apart assets for a sinking or other
analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of, any
shares of any class of capital stock of SDSA or any warrants, options or rights to purchase any
such capital stock or Equity Interests, whether now or hereafter outstanding, or make any other
distribution in respect thereof, either directly or indirectly, whether in cash or property or in
obligations of SDSA ; or (ii) make any optional payment or prepayment on or redemption (including,
without limitation, by making payments to a sinking or analogous fund) or repurchase of any
Indebtedness (other than the Obligations)), except as permitted by the Amended and Restated Notes
Payable Subordination Agreement. However, as long as you are not in violation with any such
Financial Covenants prior to or subsequent to the following transactions, (i) SDSA may pay cash
dividends in an amount not to exceed 100% of its prior year earnings, to Supplies Distributors,
Inc. in calendar year 2011.”

     B. The Schedule to the Agreement is hereby amended by deleting such Schedule in its entirety
and substituting, in lieu thereof, the Schedule attached hereto. Such new Schedule shall be
effective as of the date specified in the new Schedule. The changes contained in the new Schedule
include, without limitation, the following:

Credit Line: €16,000,000

VAT Receivables: Included in Collateral Valuation

Prepayment Percentage: (i) 80% of Eligible Infoprint or IBM Reimbursables no older than 90 days,
(ii) 80% of Eligible Infoprint or IBM Receivables and (iii) 80% of Eligible VAT Receivables.

Collateral Value of Stock-in-Trade: (A) 100% of paid for IBM Printing Systems 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 Disposition, 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.

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

					
	 	 	 	 	 
	SDSA Amended & Restated Platinium Plan 10
	 	Page 2 of 5
	 	31-03-10

 

 

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	 	Date as of
	(i)

	 	Minimum Tangible Net Worth
	 	$	18,000,000.00	 	 	03/31/11 and beyond

Section 3. Conditions of Effectiveness of Consent and Amendment. This Amendment shall have been
authorized, executed and delivered by each of the parties hereto and IBM GF shall have received a
copy of a fully executed Amendment.

Section 4. Representations and Warranties. Each Loan Party makes to IBM GF the following
representations and warranties all of which are material and are made to induce IBM GF to enter
into this Amendment.

Section 4.1 Accuracy and Completeness of Warranties and Representations. All representations made
by the Loan Party in the Agreement were true and accurate and complete in every respect as of the
date made, and, as amended by this Amendment, all representations made by the Loan Party in the
Agreement are true, accurate and complete in every material respect as of the date hereof, and do
not fail to disclose any material fact necessary to make representations not misleading.

Section 4.2 Violation of Other Agreements. The execution and delivery of this Amendment and the
performance and observance of the covenants to be performed and observed hereunder do not violate
or cause any Loan Party not to be in compliance with the terms of any agreement to which such Loan
Party is a party.

Section 4.3 Litigation. Except as has been disclosed by the Loan Party to IBM GF in writing, there
is no litigation, proceeding, investigation or labor dispute pending or threatened against any Loan
Party, which, if adversely determined, would materially adversely affect the Loan Party’s ability
to perform such Loan Party’s obligations under the Agreement and the other documents, instruments
and agreements executed in connection therewith or pursuant hereto.

					
	 	 	 	 	 
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	 	31-03-10

 

 

Section 4.4 Enforceability of Amendment. This Amendment has been duly authorized, executed and
delivered by each Loan Party and is enforceable against each Loan Party in accordance with its
terms.

Section 5. Ratification of Agreement. Except as specifically amended hereby, all of the provisions
of the Agreement shall remain unamended and in full force and effect. Each Loan Party hereby
ratifies, confirms and agrees that the Agreement, as amended hereby, represents a valid and
enforceable obligation of such Loan Party, and is not subject to any claims, offsets or defenses.

Section 6. Ratification of Guaranty. Each of Holdings, SDI, PFSweb and PFS hereby ratify and
confirm their respective guaranties in favor of IBM GF and agree that such guaranties remain in
full force and effect and that the term “Liabilities”, as used therein include, without limitation
the indebtedness liabilities and obligations of SDSA under the Agreement as amended hereby. SDI
hereby ratifies and confirms its Notes Payable Subordination Agreement executed by SDI on March 29,
2002 and confirms such Notes Payable Subordination Agreement remains in full force and effect.

Section 7. Governing Law. This Amendment shall be governed by and interpreted in accordance with
the laws which govern the Agreement.

Section 8. Counterparts. This Amendment may be executed in any number of counterparts, each of
which shall be an original and all of which shall constitute one agreement.

IN WITNESS WHEREOF, each Loan Party has read this entire Amendment, and has caused its authorized
representatives to execute this Amendment and has caused its corporate seal, if any, to be affixed
hereto as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	IBM BELGIUM FINANCIAL SERVICES BVBA/ SPRL.	 	SUPPLIERS DISTRIBUTORS S.A.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	Print Name:
	 	 	 	 	 	Print Name:	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BUSINESS SUPPLIES DISTRIBUTORS HOLDINGS, 

LLC	 	PFS WEB B.V. SPRL
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	Print Name:
	 	 	 	 	 	Print Name:	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 

					
	 	 	 	 	 
	SDSA Amended & Restated Platinium Plan 10
	 	Page 4 of 5
	 	31-03-10

 

 

The following parties agree to Section 6 as applicable to them.

	 	 	 	 	 	 	 	 	 	 	 

	SUPPLIES DISTRIBUTORS, INC.	 	PRIORITY FULFILLMENT SERVICES, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	Print Name:
	 	 	 	 	 	Print Name:	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BUSINESS SUPPLIES DISTRIBUTORS
HOLDINGS, LLC
 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	Print Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 

					
	 	 	 	 	 
	SDSA Amended & Restated Platinium Plan 10
	 	Page 5 of 5
	 	31-03-10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]