Document:

exv10w1w1

 

EXHIBIT
10.1.1

PFSweb, Inc. 2007 Management Bonus Plan

          WHEREAS, PFSweb, Inc. (the “Company”) has adopted and authorized the PFSweb, Inc. 2005
Employee Stock and Incentive Plan (the “Plan;” terms defined in the Plan having the same meaning
when used herein); and

          WHEREAS, the Plan provides for the issuance of Performance-Based Cash Awards to be paid upon
achievement of such performance goals as the Committee establishes, from time to time, with regard
to such Awards; and

          WHEREAS, the Committee has determined it is in the best interests of the Company to adopt this
2007 Management Bonus Plan (the “Bonus Plan”) to set forth the performance goals for the issuance
of Performance-Based Cash Awards under the Plan for fiscal year 2007;

          NOW, THEREFORE, the Committee hereby adopts, authorizes and approves the following:

          I.      Purpose and Terms of the Bonus Plan:

          A.      The Bonus Plan has been established by the Committee pursuant to the Plan to attract,
motivate, retain, and reward the Company’s chief executive officer and other executive officers,
officers and senior management for assisting the Company in achieving its operational goals through
exceptional performance.

          B.      Under the terms of the Bonus Plan, Performance-Based Cash Awards, if any, will be awarded
to the Chief Executive Officer and other executive officers, officers and senior management based
on, and subject to, the achievement of the following performance goal. The performance goal shall
be for the Company to exceed, on a quarterly basis, the corresponding projected quarterly net
income contained in the Company’s annual budget (or, in case of a budgeted net loss, to reduce the
net loss below the budgeted net loss). As used herein, the amount by which the Company’s quarterly
net income exceeds the corresponding projected quarterly net income contained in the Company’s
annual budget (or, in case of a budgeted net loss, the amount by which the Company’s quarterly net
loss is less than the budgeted net loss) is referred to as the “Over Budget Amount.” The Over
Budget Amount shall be determined by the Committee on a quarter-by-quarter basis.

          II.      Determination of Performance-Based Cash Awards:

          A.      The total bonus amount (the “Bonus Pool Amount”) for each quarter shall be equal to the sum
of (i) an amount to be determined by the Committee for such quarter, but not to exceed the lesser
of (x) $250,000 or (y) the Over Budget Amount and (ii) if and to the extent the Over Budget Amount
exceeds $250,000, ten percent (10%) of such excess.

          B.      Following the end of each quarter, the Committee shall grant Performance-Based Cash Awards
in an aggregate amount to be determined by it, but not to exceed the Bonus Pool Amount for such
immediately preceding quarter, and shall allocate and award such Performance-

 

 

Based Cash Awards to the Chief Executive Officer and other executive officers, officers and
senior management based on the Committee’s determination of the relative contribution of each such
person. The Committee shall have sole discretion in determining the individuals to whom
Performance-Based Cash Awards are to be granted and the amounts thereof. The Chief Executive
Officer shall not be present for the Committee’s deliberations concerning any Performance-Based
Cash Award to be awarded to him, but he shall be present and shall advise the Committee regarding
the Performance-Based Cash Awards to be awarded to the other executive officers, officers and
senior management.

          C.      Performance-Based Cash Awards shall be paid as soon as practicable following the
Committee’s determination and designation thereof. Each recipient of a Performance-Based Cash Award
shall be responsible for the payment of all federal and state income taxes arising upon his or her
receipt thereof.

          C.      The Committee reserve the right to modify this Bonus Plan and performance goal at any time,
and the adoption of this Bonus Plan does not limit the ability of the Committee to award other
Awards under the Plan nor does it restrict the ability of the Company to pay or provide for the
payment of any compensation to any person.

          IN WITNESS WHEREOF, the undersigned, being all the members of the Committee, have adopted and
authorized the foregoing as of the 28th day of March, 2007.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 

James Reilly
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Timothy Murray	 	 

2exv10w74

 

EXHIBIT 10.74

IBM Credit LLC

FIFTH AMENDED AND RESTATED

NOTES PAYABLE SUBORDINATION AGREEMENT

IBM CREDIT LLC

North Castle Drive

Armonk, NY 10504

Ladies and/or Gentlemen:

     This Fifth Amended and Restated Notes Payable Subordination Agreement amends and restates in
its entirety the Amended and Restated Notes Payable Subordination Agreement dated November 13, 2002
executed by Priority Fulfillment Services, Inc. (“PFS”). Supplies Distributors, Inc., with its
principal place of business at 500 North Central Expressway, Plano, TX 75074 (“SDI”), is/may become
further indebted to PFS. PFS represents that no part of said indebtedness has been assigned to or
subordinated in favor of any other person, firm or corporation, other than pursuant to the Notes
Payable Subordination Agreement, dated as of March 29, 2002 by and between PFS and Wachovia Bank,
National Association (formerly known as Congress Financial Corporation (Southwest)) (“Wachovia”)
(“Notes Payable Subordination Agreement”) and that PFS does not hold any security therefor.
Capitalized terms used herein without definition shall have the meaning ascribed thereto in the
Financing Agreement referred to below.

     To induce IBM Credit LLC (“IBM Credit”) to continue financing SDI under the terms of the
Agreement for Inventory Financing dated March 29, 2002 with SDI (as amended, modified, and
supplemented from time to time, the “Financing Agreement”) and in consideration of any loans,
advances, payments, extensions or credit (including the extension or renewal, in whole or in part,
of any antecedent or other debt), benefits or financial accommodations heretofore or hereafter
made, granted or extended by IBM Credit or which IBM Credit has or will become obligated to make,
grant or extend to or for the account of SDI whether under the Financing Agreement or otherwise,
and in consideration of any obligations heretofore or hereafter incurred by SDI to IBM Credit,
whether under the Financing Agreement or otherwise, PFS agrees to make the payment of the
indebtedness referred to in the first paragraph hereof and any and all other present or future
indebtedness of SDI to PFS together with any and all interest accrued thereon (collectively the
“Secondary Obligations”) subject and subordinate to the prior indefeasible payment in full of any
and all debts, obligations and liabilities of SDI to IBM Credit, whether absolute or contingent,
due or to become due, now existing or hereafter arising and whether direct or acquired by IBM
Credit by transfer, assignment or otherwise (collectively the “Primary Obligations”) and that SDI
shall make no payments to PFS until the Primary Obligations have been indefeasibly paid in full as
acknowledged in writing by IBM Credit. Notwithstanding the foregoing, SDI may make payments in
respect of the Secondary Obligations provided that (i) no Default or Event of Default exists
immediately prior to the payment of the Secondary Obligations and that no Default or Event of
Default will occur after any payment in respect of the Secondary Obligations (ii) any such payment
shall not cause the total amount of the Secondary Obligations to be less than Six Million Dollars
($6,000,000), and (iii) such payment would be permitted under the Notes Payable Subordination
Agreement. Except as provided above, PFS agrees not to ask, demand, sue for, take or receive
payment or security for all or any part of the Secondary Obligations until and unless all of the
Primary Obligations shall have been fully paid and discharged.

     Upon any distribution of any assets of SDI whether by reason of sale, reorganization,
liquidation, dissolution, arrangement, bankruptcy, receivership, assignment for the benefit of
creditors, foreclosure or otherwise, IBM Credit shall be entitled to receive payment in full of the
Primary Obligations prior to the payment of any part of the Secondary Obligations. To enable IBM Credit
to enforce its rights hereunder in any such proceeding or upon the happening of any such event, IBM Credit or any person
whom IBM Credit may from time to time designate is hereby irrevocably appointed attorney-in-fact
for PFS with full power to act in the place and stead of PFS including the right to make, present,
file and vote proofs of claim against SDI on account of all or any part of said Secondary
Obligations as IBM Credit may deem

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advisable and to receive and collect any and all payments made thereon and to apply the same
on account of the Primary Obligations. PFS will execute and deliver to such instruments as IBM
Credit may require to enforce each of the Secondary Obligations, to effectuate said power of
attorney and to effect collection of any and all dividends or other payments which may be made at
any time on account thereof.

     While this instrument remains in effect, PFS will not assign to or subordinate in favor of any
other person, firm or corporation, (except for Wachovia subject to terms of the Intercreditor
Agreement dated the date hereof between Wachovia and IBM Credit) any right, claim or interest in or
to the Secondary Obligations or commence or join with any other creditor in commencing any
bankruptcy, reorganization or insolvency proceeding against SDI. IBM Credit may at any time, in its
discretion, renew or extend the time of payment of all or any portion of the Primary Obligations or
waive or release any collateral which may be held therefor and IBM Credit may enter into such
agreements with SDI as IBM Credit may deem desirable without notice to or further assent from PFS
and without adversely affecting IBM Credit’s rights hereunder in any manner whatsoever.

     In furtherance of the foregoing and as collateral security for the payment and discharge in
full of any and all of the Primary Obligations, PFS hereby transfers and assigns to IBM Credit the
Secondary Obligations and all collateral security therefor to which PFS now is or may at any time
be entitled and all rights under all guarantees thereof and agrees to deliver to IBM Credit
endorsed in blank all notes or other instruments now or hereafter evidencing said Secondary
Obligations. IBM Credit may file one or more financing statements concerning any security interest
hereby created without the signature of PFS appearing thereon.

     The within instrument is and shall be deemed to be a continuing subordination and shall be
and remain in full force and effect until all Primary Obligations have been performed and paid in
full and IBM Credit’s commitment, if any, under the Financing Agreement has been terminated.

Dated March __, 2007.

	 	 	 	 	 
	 	PRIORITY FULFILLMENT SERVICES, INC. 

 	 
	 	By:  	 	 
	 	Name:  	 	Thomas J. Madden 	 
	 	Title:  	 	CFO

500 North Central Expressway

Plano, TX 75074 	 
	 

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	To:	 	IBM Credit LLC

             SDI hereby acknowledge notice of the within and foregoing subordination and agree to be bound
by all the terms, provisions and conditions thereof. SDI further agrees not to repay all or any
part of the Secondary Obligations, or to issue any note or other instrument evidencing the same or
to grant any collateral security therefor without IBM Credit’s prior written consent.

	 	 	 	 	 
	 	SUPPLIES DISTRIBUTORS, INC. 

 	 
	 	By:  	 	 
	 	Name:  	 	Joseph Farrell 	 
	 	Title:  	 	President / CEO 	 
	 

ACCEPTED:

IBM CREDIT LLC

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	Name:

Title:

	 	Stanton Clark

Manager, Credit	 	 

ACKNOWLEDGMENT OF SUBORDINATION

	 	 	 	 	 	 	 	 
	 

	)SS
	 	 	)	 	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	 	)	 	 	 

             On the ___ day of March, 2007, appeared before me                                          to me known to
be the individual described in and who executed the foregoing instrument, and who acknowledged to
me that the same was executed as his or her free and voluntary act for the uses and purposes
therein set forth.

	 	 	 	 	 	 	 
	 

	 	 	 	 

(Notary Public)
	 	 
	My Commission Expires:
	 	 	 	 	 	 
	                    ,                     

	 	 	 	 	 	 

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