Document:

exv10w5

 

Exhibit 10.05

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT

     THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of
March 31, 2006, is entered into by and between WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN), a
California corporation formerly known as Congress Financial Corporation (Western)
(“Lender”), and ECOST.COM, INC., a Delaware corporation, (“Borrower”).

RECITALS

     A. Borrower and Lender have previously entered into that certain Loan and Security Agreement
dated August 3, 2004, as amended by that certain First Amendment to Loan and Security Agreement
dated November ___, 2005, and as modified by that certain letter agreement dated November 29, 2005
(such letter agreement, the “Consent”) (as amended, restated, supplemented or otherwise
modified at any time or from time to time, the “Loan Agreement”), pursuant to which Lender
has made certain loans and financial accommodations available to Borrower.

     B. Borrower has entered into that certain Agreement and Plan of Merger dated as of November
29, 2005 (the “Merger Agreement”), by and among Borrower, Red Dog Acquisition Corp., a
Delaware corporation (“Merger Sub”) and PFSweb, Inc., a Delaware corporation
(“PFSweb”), which Merger Agreement provides for the merger of Merger Sub with and into
Borrower.

     C. Pursuant to the Consent, and subject to the terms and conditions set forth therein, Lender
has consented to the Merger Agreement and the transactions contemplated thereby (such agreement and
transactions, collectively, the “Merger”).

     D. On February 1, 2006, Merger Sub merged with and into Borrower, with Borrower as the
surviving corporation.

     E. Lender and Borrower now wish to amend the Loan Agreement on the terms and conditions set
forth herein.

     F. Each of Borrower and Lender is entering into this Amendment with the understanding and
agreement that, except as specifically provided herein, none of Lender’s rights or remedies as set
forth in the Loan Agreement is being waived or modified by the terms of this Amendment.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

     1. Defined Terms. Unless otherwise defined in this Amendment, any initially
capitalized terms used in this Amendment shall have the respective meanings ascribed thereto in the
Loan Agreement.

 

 

     2. Amendments to Loan Agreement.

          (a) Section 1 of the Loan Agreement is hereby amended by adding the following definition as
Section 1.79 of the Loan Agreement:

          “1.79 “PFSweb” shall mean PFSweb, Inc., a Delaware corporation.

          (b) The following words shall be added after the words “forty five (45) days after the end of
each fiscal month ” in clause (i) of the third sentence of Section 9.6(a) of the Loan Agreement:

“for each of the monthly periods ending up to and including December 31, 2006 and
within thirty five (35) days for any periods thereafter”

          (c) Clause (ii) of the third sentence of Section 9.6(a) of the Loan Agreement is hereby
amended and restated to read in its entirety as follows:

“(ii) within ninety (90) days after the end of each fiscal year, consolidated
financial statements and consolidating financial statement of Borrower and its
Subsidiaries (including in each case balance sheets, statements of income and loss,
statements of cash flow and statements of shareholders’ equity), and the
accompanying notes thereto, all in reasonable detail, fairly presenting the
financial position and the results of the operations of Borrower and its
Subsidiaries as of the end of and for such fiscal year, together with a certificate
of Borrower’s chief financial officer that such financial statements have been
prepared in accordance with GAAP, and present fairly the results of operations and
financial condition of Borrower and its Subsidiaries as of the end of and for the
fiscal year then ended.”

          (d) The following sentence is hereby added at the end of Section 9.6(c) of the Loan Agreement:

“Borrower shall also promptly after the filing thereof furnish or cause to be
furnished to Lender copies of all reports and statements which PFSweb files with the
Securities and Exchange Commission, including without limitation any Form 10-K
annual report and Form 10-Q quarterly report which, for periods from after February
1, 2006, shall include a segment break out of Borrower when required.”

          (e) Section 9.9 of the Loan Agreement is hereby amended by (i) deleting the word “and” at the
end of Section 9.9(e), (ii) deleting the period at the end of Section 9.9(f) and adding “; and” in
the place of such deleted period, and (iii) adding the following as Section 9.22(g):

“(g) Indebtedness of Borrower or any Subsidiary of Borrower under a loan agreement
or similar contractual arrangements for any loan by PSFweb or its Affiliates to
Borrower or such Subsidiary; provided that no payment may be made on
account of such Indebtedness if an Event of Default has occurred and is continuing
or would result from such payment, or if such payment would reduce

2

 

the
total of the
principal sum of such Indebtedness outstanding plus capital advances paid in cash to
Borrower by PFSweb or its affiliates to an amount less than Two Million Dollars
($2,000,000).

          (f) Section 9.12 of the Loan Agreement is hereby amended by adding the following immediately
before the period at the end of such Section:

“and except for any repayments of Indebtedness permitted by Section 9.9(g) hereof.”

          (g) Section 9.17 of the Loan Agreement is hereby amended and restated to read in its entirety
as follows:

“9.17 Adjusted Tangible Net Worth. Borrower shall maintain a sum of
Adjusted Tangible Net Worth plus the amount of any Indebtedness on account of any
loan by PFSweb or its Affiliates to Borrower of not less than One Million Dollars
($1,000,000) as of the last day of each month commencing December 31, 2005.”

     3. Amendments to Consent. Section 3 of the Consent shall hereby be amended and
restated to read in its entirety as follows:

“3. Availability Created by Eligible Inventory. Notwithstanding anything
to the contrary in the Loan Agreement or any other Financing Agreement, any
availability of Borrower that is created by or with respect to Eligible Inventory
shall be subject to Borrower providing reports of Eligible Inventory in form and
substance satisfactory to Lender.”

Additionally, Section 4 of the Consent (Reduction of Eligible Inventory Sublimit) is hereby deleted
in its entirety. Except as specifically amended above, all of the terms and provisions of the
Consent shall continue to be in full force and effect (including without limitation Section 5
thereof regarding a Reserve equal to One Million Dollars ($1,000,000)).

     4. Waivers. Lender waives the requirement that the monthly financial statements as
required in clause (i) of the third sentence of Section 9.6(a) of the Loan Agreement for the fiscal
months of January 2006 and February 2006 be furnished to Lender within forty-five (45) days of
fiscal month end, provided, that, such statements shall be furnished to Lender no
later than April 30, 2006. Lender further waives the requirements that the annual financial
statements as required in clause (ii) of that third sentence for the fiscal year ended December 31,
2005 be audited and accompanied by the opinion of independent certified public accountants and be
furnished to Lender within ninety (90) days of fiscal year end, provided, that,
such statements shall be certified to be correct by the vice president controller of Borrower and
shall be furnished to Lender no later than April 30, 2006. Except as specifically provided above,
all of
the financial statements and other documents described in Section 9.6(a) of the Loan Agreement
shall be furnished to Lender as and when required in Section 9.6(a) as amended above.

     5. Effectiveness of this Amendment. The following shall have occurred before this
Amendment is effective:

3

 

          (a) Amendment. Lender shall have received this Amendment in form and substance
satisfactory to Lender in all respects, duly executed by Borrower in a sufficient number of
counterparts for distribution to all parties.

          (b) Guaranty. Lender shall have received a Guaranty in form and substance
satisfactory to Lender in all respects, duly executed by PFSweb and covering all Obligations of
Borrower to Lender, together with a certified copy of its board of directors resolutions and such
other documents as Lender may require to establish the due power and authority of PFSweb to execute
and deliver, and the due execution and delivery of, such Guaranty.

          (c) Amendment Fee. Lender shall have received an amendment fee in the amount of
Forty-Five Thousand Dollars ($45,000), which fee is fully earned as of and due and payable on the
date hereof.

          (d) Representations and Warranties. The representations and warranties set forth
herein and in each Financing Agreement (after giving effect to this Amendment) shall be true and
correct (other than any such representations or warranties that, by their terms, are specifically
made as of a date other than the date hereof).

          (e) Other Required Documentation. All other documents and legal matters in connection
with the transactions contemplated by this Amendment shall have been delivered or executed or
recorded, as applicable, and shall be in form and substance satisfactory to Lender in all respects.

     6. Representations and Warranties. Borrower represents and warrants to Lender as
follows:

          (a) Authority and Due Execution. Borrower has all requisite corporate power and
authority to execute and deliver this Amendment, and to perform its obligations hereunder and under
the Financing Agreements (as amended or modified hereby). The execution, delivery and performance
by Borrower of this Amendment (i) are within the power of Borrower, (ii) have been duly authorized
and approved by all necessary corporate action and no other corporate proceedings are necessary to
consummate such transactions, and (iii) have received all necessary governmental approvals, if any,
and do not contravene any law or any contractual obligations or restrictions binding on Borrower.

          (b) Enforceability. This Amendment has been duly executed and delivered by Borrower.
This Amendment and each Financing Agreement (as amended or modified hereby) is the legal, valid and
binding obligation of Borrower, enforceable against Borrower in accordance with its terms, and is
in full force and effect.

          (c) Representations and Warranties. The representations and warranties contained in
each Financing Agreement (other than any such representations or warranties that, by their terms,
are specifically made as of a date other than the date hereof) are true and correct on and as of
the date hereof as though made on and as of the date hereof provided Lender acknowledges that
Borrower has heretofore given notice to Bank that since the date of the last audited financial
statements provided by Borrower to Lender, Borrower has experienced

4

 

significant operating losses
and additionally a large customer owing the Borrower approximately $2 million is insolvent.

          (d) No Default. No event has occurred and is continuing that constitutes a Default or
an Event of Default.

     7. Governing Law. The validity, interpretation, construction and enforcement of this
Amendment and the rights of the parties hereunder, shall be determined under, governed by and
construed in accordance with the internal laws of the State of California but excluding any
principles of conflicts of law or other rule of law that would cause the application of the law of
any jurisdiction other than the laws of the State of California.

     8. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties and separate counterparts, each of which when so executed and delivered, shall be
deemed an original, and all of which, when taken together, shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Amendment by
telefacsimile shall be effective as delivery of a manually executed counterpart of this Amendment.
Any party delivering an executed counterpart of this Amendment by telefacsimile shall also deliver
an original executed counterpart, but the failure to do so shall not affect the validity,
enforceability or binding effect of this Amendment.

     9. Reference to and Effect on the Financing Agreements.

          (a) Upon and after the effectiveness of this Amendment, each reference in the Loan Agreement
to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Loan Agreement,
and each reference in the other Financing Agreements to “the Loan Agreement”, “thereunder”,
“thereof” or words of like import referring to the Loan Agreement, shall mean and be a reference to
the Loan Agreement as modified and amended hereby.

          (b) Except as specifically amended above, the Loan Agreement and all other Financing
Agreements, are and shall continue to be in full force and effect and are hereby in all respects
reaffirmed, ratified, approved and confirmed and shall constitute the legal, valid, binding and
enforceable obligations of Borrower to Lender.

          (c) 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 Lender under any of the
Financing Agreements, nor constitute a waiver of any provision of any of the Financing Agreements.

          (d) To the extent that any terms and conditions in any of the Financing Agreements shall
contradict or be in conflict with any terms or conditions of the Loan Agreement, after giving
effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Loan Agreement as
modified or amended hereby.

     10. Estoppel. To induce Lender to enter into this Amendment and to continue to make
advances to Borrower under the Loan Agreement, and without limiting Borrower’s rights to contest
Lender’s monthly statements in accordance with Section 6.2 of the Loan Agreement,

5

 

Borrower hereby
acknowledges and agrees that, as of the date hereof, there exists no right of offset, defense,
counterclaim or objection in favor of Borrower as against Lender with respect to the Obligations.

     11. No Waiver. The execution of this Amendment and acceptance of any other documents
related hereto shall not be deemed to be a waiver of any Event of Default under the Loan Agreement
or any breach, default or event of default under any other Financing Agreement, whether or not
known to Lender and whether or not existing on the date of this Amendment.

     12. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of each of Borrower and Lender and their respective successors and assigns.

     13. Captions and Headings. The captions or section headings at various places in this
Amendment are intended for convenience only and do not constitute and shall not be interpreted as
part of this Amendment.

     14. Integration. This Amendment, together with the other Financing Agreements,
incorporates all negotiations of the parties hereto with respect to the subject matter hereof and
is the final expression and agreement of the parties hereto with respect to the subject matter
hereof.

     15. Severability. In case any provision in this Amendment shall be invalid, illegal
or unenforceable, such provision shall be severable from the remainder of this Amendment and the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

     16. No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Amendment. In the event an ambiguity or question of intent or
interpretation arises, this Amendment shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Amendment.

     17. No Other Changes. Except as explicitly amended or modified by this Amendment, all
of the terms and conditions of the Loan Agreement shall remain in full force and effect.

[Remainder of Page Intentionally Blank]

6

 

     IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute
and deliver this Amendment as of the date first above written.

	 	 	 	 	 	 	 
	 	 	ECOST.COM, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 
	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 
	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

7exv10w6

 

Exhibit 10.06

FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

     THIS FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is made and
entered into as of the ___day of April, 2006 by and between CONGRESS FINANCIAL CORPORATION
(SOUTHWEST), a Texas corporation (“Lender”), and SUPPLIES DISTRIBUTORS, INC., a Delaware
corporation (“Borrower”).

     WHEREAS, Borrower and Lender are parties to that certain Loan and Security Agreement dated as
of March 29, 2002 as amended by that certain First Amendment to Loan and Security Agreement dated
as of April 20, 2004 and by that certain Second Amendment to Loan and Security Agreement dated as
of December 21, 2004, and by that certain Third Amendment to Loan and Security Agreement dated as
of June 24, 2005 (as amended from time to time, the “Loan Agreement”);

     WHEREAS, Borrower and Lender desire to amend the Loan Agreement in the manner provided below;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE I.

DEFINITIONS

     Section 1.01. Definitions. Capitalized terms used in this Amendment, to the extent
not otherwise defined herein, shall have the same meaning as in the Loan Agreement, as amended
hereby.

ARTICLE II.

AMENDMENTS

     Section 2.01. Amendment to Section 9.11(c) of the Loan Agreement. Effective as of the
date hereof, Section 9.11(c) of the Loan Agreement is hereby amended and restated in its
entirety to read as follows: “(c) the aggregate amount of all such dividends does not exceed (i)
$1,250,000 per year, plus (ii) an amount equal to the proceeds received by Borrower related to the
liquidation of Business Supplies Distributors Europe BV, plus (iii) an amount equal to any cash
dividends received by Borrower from Supplies Distributors SA.”

ARTICLE III.

NO WAIVER

     Section 3.01. No Waiver. Nothing contained in this Amendment shall be construed as a
waiver by Lender of any covenant or provision of the Loan Agreement, the other documents and
agreements relating hereto or thereto (hereinafter individually referred to as a “Loan
Document” and collectively referred to as the “Loan Documents”), this Amendment, or of
any other contract or instrument between Borrower and Lender, and the failure of Lender at any time
or times

	 	 	 	 	 
	Fourth Amendment to Loan and Security Agreement

	 	 
	 	 

 

 

hereafter to require strict performance by Borrower of any provision thereof shall not waive,
affect or diminish any right of Lender to thereafter demand strict compliance therewith. Lender
hereby reserves all rights granted under the Loan Agreement, the other Loan Documents, this
Amendment and any other contract or instrument between Borrower and Lender.

ARTICLE IV.

CONDITIONS PRECEDENT

     Section 4.01. Conditions. The effectiveness of this Amendment is subject to the
satisfaction of the following conditions precedent, unless specifically waived by Lender:

     (a) Lender shall have received, in form and substance satisfactory to Lender in its
sole discretion, (i) this Amendment, duly executed by Borrower and each of the attached
Consent, Ratification and Releases duly executed by the Guarantors, and (ii) such
additional documents, instruments and information as Lender or its legal counsel may
request;

     (b) The representations and warranties contained herein, in the Loan Agreement, as
amended hereby, and/or in the other Loan Documents shall be true and correct as of the date
hereof as if made on the date hereof;

     (c) No default shall have occurred under the Loan Agreement and be continuing and no
default shall exist under the Loan Agreement unless such default has been specifically
waived in writing by Lender; and

     (d) All corporate proceedings taken in connection with the transactions contemplated by
this Amendment and all documents, instruments and other legal matters incident thereto shall
be satisfactory to Lender and its legal counsel, Patton Boggs LLP.

ARTICLE V.

RATIFICATIONS, REPRESENTATIONS AND WARRANTIES

     Section 5.01. Ratifications. The terms and provisions set forth in this Amendment
shall modify and supersede all inconsistent terms and provisions set forth in the Loan Agreement
and except as expressly modified and superseded by this Amendment, the terms and provisions of the
Loan Agreement are ratified and confirmed and shall continue in full force and effect.

     Section 5.02. Representations and Warranties. Borrower hereby represents and warrants
to Lender that (i) the execution, delivery and performance of this Amendment and any and all other
Loan Documents executed and/or delivered in connection herewith have been authorized by all
requisite corporate action on the part of Borrower and will not violate the Articles of
Incorporation or Bylaws of Borrower, (ii) the representations and warranties contained in the Loan
Agreement, as amended hereby, and any other Loan Document are true and correct on and as of the
date hereof as though made on and as of the date hereof, (iii) Borrower is in full compliance with
all covenants and agreements contained in the Loan Agreement, as amended hereby, and (iv) Borrower
has not amended its Articles of Incorporation or Bylaws since March 29, 2002.

	 	 	 	 	 	 	 
	Fourth Amendment to Loan and Security Agreement

	 	 	2	 	 	 

 

 

ARTICLE VI.

MISCELLANEOUS

     Section 6.01. Survival of Representations and Warranties. All representations and
warranties made in the Loan Agreement or any other document or documents relating thereto,
including, without limitation, any Loan Document furnished in connection with this Amendment, shall
survive the execution and delivery of this Amendment and the other Loan Documents, and no
investigation by Lender or any closing shall affect the representations and warranties or the right
of Lender to rely upon them.

     Section 6.02. Reference to Loan Agreement. Each of the Loan Documents, including the
Loan Agreement and any and all other agreements, documents or instruments now or hereafter executed
and delivered pursuant to the terms hereof or pursuant to the terms of the Loan Agreement as
amended hereby, are hereby amended so that any reference in such Loan Documents to the Loan
Agreement shall mean a reference to the Loan Agreement as amended hereby.

     Section 6.03. Expenses of Lender. As provided in the Loan Agreement, Borrower agrees
to pay all reasonable costs and expenses incurred by Lender in connection with the preparation,
negotiation and execution of this Amendment and the other Loan Documents executed pursuant hereto
and any and all amendments, modifications, and supplements thereto, including without limitation
the reasonable costs and fees of Lender’s legal counsel, and all reasonable costs and expenses
incurred by Lender in connection with the enforcement or preservation of any rights under the Loan
Agreement, as amended hereby, or any other Loan Document, including without limitation the
reasonable costs and fees of Lender’s legal counsel.

     Section 6.04. Severability. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder
of this Amendment and the effect thereof shall be confined to the provision so held to be invalid
or unenforceable. Furthermore, in lieu of each such invalid or unenforceable provision there shall
be added automatically as a part of this Amendment a valid and enforceable provision that comes
closest to expressing the intention of such invalid or unenforceable provision.

     Section 6.05. APPLICABLE LAW. THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED
PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN DALLAS, TEXAS AND SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

     Section 6.06. Successors and Assigns. This Amendment is binding upon and shall inure
to the benefit of Lender and Borrower and their respective successors and assigns, except Borrower
may not assign or transfer any of its rights or obligations hereunder without the prior written
consent of Lender.

     Section 6.07. Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original, but all of which

	 	 	 	 	 	 	 
	Fourth Amendment to Loan and Security Agreement

	 	 	3	 	 	 

 

 

when taken together shall constitute one and the same instrument.

     Section 6.08. Effect of Waiver. No consent or waiver, express or implied, by Lender
to or for any breach of or deviation from any covenant or condition of the Loan Agreement shall be
deemed a consent or waiver to or of any other breach of the same or any other covenant, condition
or duty.

     Section 6.09. Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of this Amendment.

     Section 6.10. NO ORAL AGREEMENTS. THE LOAN AGREEMENT 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 BETWEEN THE PARTIES.

     Section 6.11. RELEASE. BORROWER HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE,
COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE
ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE “OBLIGATIONS” OR TO
SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER. BORROWER HEREBY VOLUNTARILY
AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES,
SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES,
COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED,
SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN
WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH THE BORROWER MAY NOW OR
HEREAFTER HAVE AGAINST LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY,
AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR
REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”, INCLUDING, WITHOUT LIMITATION, ANY
CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE
HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR
OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

	 	 	 	 	 	 	 
	Fourth Amendment to Loan and Security Agreement

	 	 	4	 	 	 

 

 

     IN WITNESS WHEREOF, this Amendment has been duly executed by Borrower and Lender to be
effective as of the date first above written.

	 	 	 	 	 	 	 	 	 
	LENDER:	 	 	 	BORROWER:
	 
	 	 	 	 	 	 	 	 
	CONGRESS FINANCIAL CORPORATION	 	 	 	SUPPLIES DISTRIBUTORS, INC.,
	(SOUTHWEST)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:	 	 	 	Chief Executive Office:
	 
	 	 	 	 	 	 	 	 
	5001 LBJ Freeway, Suite 1050	 	 	 	500 North Central Expressway, 5th Floor
	Dallas, Texas 75244	 	 	 	Plano, Texas 75074

	 	 	 	 	 
	Fourth Amendment to Loan and Security Agreement

	 	 
	 	 

 

 

CONSENT, RATIFICATION AND RELEASE

     Each of the undersigned hereby consents to the terms of the within and foregoing Amendment,
confirms and ratifies the terms of that certain Secured Guarantee dated March 29, 2002 and that
certain General Security Agreement dated March 29, 2002 each as amended from time to time and as
executed by the undersigned for the benefit of Lender (the “Guaranty Documents”), and
acknowledges that the Guaranty Documents are in full force and effect and ratifies the same, that
the undersigned has no defense, counterclaim, set-off or any other claim to diminish the
undersigned’s liability under such documents, that the undersigned’s consent is not required to the
effectiveness of the within and foregoing Amendment, and that no consent by the undersigned is
required for the effectiveness of any future amendment, modification, forbearance or other action
with respect to the Obligations, the Collateral, or any of the other Loan Documents. THE
UNDERSIGNED HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, ITS
PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS,
ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN,
ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW
OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED,
WHICH THE UNDERSIGNED MAY NOW OR HEREAFTER HAVE AGAINST LENDER, ITS PREDECESSORS, AGENTS,
EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF
CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”,
INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR
RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND
REMEDIES UNDER THE LOAN AGREEMENT OR OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS
AMENDMENT.

	 	 	 	 	 
	 	 	PRIORITY FULFILLMENT SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	BUSINESS SUPPLIES DISTRIBUTORS
 HOLDINGS, LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Fourth Amendment to Loan and Security Agreement

	 	 
	 	 

 

 

CONSENT, RATIFICATION AND RELEASE

     The undersigned hereby consents to the terms of the within and foregoing Amendment, confirms
and ratifies the terms of that certain Guarantee dated March 29, 2002 as amended from time to time
and as executed by the undersigned for the benefit of Lender (the “Guaranty Documents”),
and acknowledges that the Guaranty Documents are in full force and effect and ratifies the same,
that the undersigned has no defense, counterclaim, set-off or any other claim to diminish the
undersigned’s liability under such documents, that the undersigned’s consent is not required to the
effectiveness of the within and foregoing Amendment, and that no consent by the undersigned is
required for the effectiveness of any future amendment, modification, forbearance or other action
with respect to the Obligations, the Collateral, or any of the other Loan Documents. THE
UNDERSIGNED HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, ITS
PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS,
ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN,
ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW
OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED,
WHICH THE UNDERSIGNED MAY NOW OR HEREAFTER HAVE AGAINST LENDER, ITS PREDECESSORS, AGENTS,
EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF
CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”,
INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR
RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND
REMEDIES UNDER THE LOAN AGREEMENT OR OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS
AMENDMENT.

	 	 	 	 	 
	 	 	PFSWEB, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Fourth Amendment to Loan and Security Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]