Document:

exv10w3

 

Exhibit
10.03

AMENDMENT 6 

TO

AMENDED AND RESTATED PLATINUM PLAN AGREEMENT (WITH INVOICE DISCOUNTING)

     This Amendment 6 (“Amendment”) dated March 28, 2006 is made to the AMENDED AND RESTATED
PLATINUM PLAN AGREEMENT (WITH INVOICE DISCOUNTING) by and among IBM BELGIUM FINANCIAL SERVICES
S.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”), and Business Supplies Distributors Europe BV a Netherlands company registered in
Maastricht with a Netherlands trade registration number of HR Maastricht 14062763 with an address
of Dalderhaag 13, 6136 KM Sittard, The Netherlands
(“BSDE”) (SDSA and BSDE collectively,
“you”),
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,
BSDE 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, 2007 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:

Page 1 of 5

 

“ 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 BSDE and/or 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 BSDE and/or 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 BSDE and/or 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) BSDE
may pay cash dividends to Supplies Distributors, Inc. up to an amount not to exceed BSDE’s
liquidation value, and (ii) SDSA may pay cash dividends in an amount not to exceed 1,275,000 euros
to Supplies Distributors, Inc. in fiscal year 2006.”

(c) Section 10.1 is hereby amended by deleting it in its entirety and substituting, in lieu
thereof, the following:

“This Agreement will remain in force until the Termination Date. However
following the occurrence of an Event of Default that we have not waived in
writing we may by notice with immediate effect terminate this Agreement.
Upon any termination of this Agreement we shall have all the rights and
remedies set out in Clause 9.2 until the complete discharge of all the
Loan Parties’ obligations to us. Any such termination shall not affect any
right we have in relation to the IBM Reimbursables and IBM Receivables or
the Receivables Rights and the Supplier Obligations and the Product
Rights.

     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:      €12,500,000

VAT Receivables:      Deleted from Collateral Valuation

Prepayment Percentage:      (i) 80% of Eligible IBM Reimbursables (1) and (ii) 80% of Eligible IBM
Receivables

Collateral Value of Stock-in-Trade: (A) 100% of paid for IBM Printing Systems Division
inventory (other than (a) machines which IBM Printing Systems Division 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 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

Page 2 of 5

 

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 Covenant Definitions: Changed for net Profit After Tax, Revenue and Working Capital
Turnover.

FINANCIAL COVENANTS

SDSA and BSDE 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	 	Date as of
	(i)

	 	Minimum Tangible	 	 	 	 	 	 
	 

	 	Net Worth
	 	$	18,000,000.00	 	 	03/31/06 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.

Page 3 of 5

 

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 and BSDE 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 S.A.	 	 	 	SUPPLIERS DISTRIBUTORS S.A.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BUSINESS SUPPLIES DISTRIBUTORS EUROPE BV	 	 	 	PFS WEB B.V. SPRL	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

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:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

Page 4 of 5

 

	 	 	 	 	 	 	 
	BUSINESS SUPPLIES DISTRIBUTORS

HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 	 	 	 	 

Page 5 of 5

 

Agreement for IBM Global Financing Platinum Plan

Invoice Discounting Schedule

Supplies Distributors S.A./Business Supplies Distributors Europe B.V.

	 	 	 	 	 	 	 
	Your Name

	 	Supplies Distributors
S.A.
and Business Supplies
Distributors Europe B.V.
	 	Schedule Number
	 	 6
	 
	 	 	 	 	 	 
	Your Number

	 	SDSA — RC Liege
208795
BSDE — HR
Maastricht
14062763
	 	Effective date of
Schedule
	 	 28 March 2006
	 
	 	 	 	 	 	 
	Credit Limit

	 	 € 12,500,000
	 	Commencement Date
	 	27 September 2001
	 
	 	 	 	 	 	 
	No Charge Period

	 	IBM 45 days
	 	Prepayment

Percentage
	 	(i) 80% of Eligible IBM
Reimbursables (1)
(ii) 80% of Eligible IBM
Receivables

Collateral Value of Stock-in-Trade

	 	(A)	 	100% of paid for IBM Printing Sytems Division inventory (other than (a) machines which IBM
Printing Systems Division 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 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.
	 
	 	(B)	 	IBM Ireland is added as Authorised Supplier as well as IBM Endicott and IBM
Singapore

1

 

	 	 	 	 	 	 	 
	FINANCE CHARGES (2)

Base Rate (3)

	 	EURIBOR
	 	REPORTING

Audited Accounts (4)
	 	90 days after fiscal
year
	 
	Discount

	 	Base Rate plus 1.5.%
	 	Management (unaudited)
	 	35 days after fiscal
	Charge (5)

	 	 	 	Accounts
	 	calendar quarter
	 
	Default Rate

Shortfall Fee

	 	Base Rate plus 7%

0.30% of Shortfall Amount
	 	Collateral Management
Report

Aged Creditor Report
	 	10 days after calendar
month

10 days after calendar
month
	 
	Banking

	 	Nil
	 	Stock Report
	 	10 days after calendar
	Transfer

	 	 	 	 	 	month
	Charge
	 	 	 	 	 	 
	 
	Service Fee per

	 	N/A
	 	Fixed Asset Register
	 	10 days after calendar
	Notification

	 	 	 	 	 	month
	 
	Monthly

	 	€1,500 plus VAT per
	 	Surveys
	 	A maximum of 4 times
	Service Fee,

	 	month
	 	 	 	per year and not more
	Set up Fee

	 	 	 	 	 	than one per quarter
	 
	Survey Fee

	 	€5,000 plus VAT per IBM

GF survey
	 	Financial Covenant
Compliance Certificate
from both SDSA and
Holdings

	 	45 days after fiscal
period

	 
	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
	 	Extended Credit Period	 	in 10 day increments up to 30 days
	 
	Unused Line

	 	Equal to thirty seven and	 	 	 	 
	Fee

	 	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

	 	Base Rate plus 1.5%	 	 	 	 
	Credit Charge
	 	 	 	 	 	 

2

 

	 	 	 	 	 
	ADDITIONAL COLLATERAL
	 	 	 	 
	 
	This Agreement
	 	 	 	 
	Stock Pledge Agreement among Supplies
Distributors, Inc (“SDI”), and IBM GF, whereby SDI
pledges 65% of its shares in SDSA and BSDE to IBM GF	 	Amended and Restated Stock Pledge
	 
	Liens: Charges: Pledges: Fixed and Floating Charge over
all IBM inventory of SDSA and BSDE 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) BSDE is duly organized
under the laws of the Netherlands and is registered to
conduct business in Belgium, (ii) SDSA and PFS Web
B.V. are duly organized under the laws of the Kingdom
of Belgium and registered to do business there (iii)
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, (iv)
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 (v) 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.

3

 

OTHER CONDITIONS

1. Valid and enforceable customary documentation for the Collateral provided by BSDE, 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;
and

8. Liquidation of BSD Europe B.V. is approved on terms that SDSA acknowledges that it will
remain liable solely for all obligations owed or be come owing by both entities currently under this
Agreement.

FINANCIAL COVENANTS

SDSA and BSDE 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 03/31/06 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 and BSDE 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.

4

 

“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.

5

 

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:

	 	(ii) if to SDSA:
	 
	 	 
	IBM
Belgium Financial Services S.A.

Avenue du Bourget

, BE- 42 1130 Brussels

VAT BE 424300467

	 	Supplies Distributors S.A.

Rue Louis Blériot 5

B-4460 Gráce-Hollogne

Belgium
	 

	 	:
	 
	 	 
	(iii) if to BSDE:

	 	(iv) if to PFS Web B.V.
	 
	 	 
	Business Supplies Distributors Europe BV

Markt 28, 6211 CF Maastricht

The Nederlands

	 	PFS Web B.V. SPRL
c/o SDSA

Footnotes:

	 		
	(1)	 	The maximum value for collateral representing IBM Reimbursables is €2 million.
	 
	(2)	 	All charges are exclusive of any taxes and duties. You agree to pay all applicable taxes and
duties.
	 
	(3)	 	“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.
	 
	(4)	 	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

6

 

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:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	BUSINESS SUPPLIES DISTRIBUTORS	 	PFS WEB B.V. SPRL
	EUROPE BV	 	 	 	 
	 
	 	 	 	 	 	 
	Signed:

	 	 	 	Signed:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	By Name:

	 	 	 	By Name:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Signature:

	 	 	 	Signature:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 

7exv10w4

 

Exhibit 10.04

Agreement
for IBM Global Financing Platinum Plan

 Invoice Discounting Schedule

Supplies Distributors S.A./Business Supplies Distributors Europe B.V.

	 	 	 	 	 	 	 	 	 
	Your Name

	 	Supplies
Distributors S.A. and
Business Supplies
Distributors Europe
B.V.
	 	Schedule Number
	 	6
	 
	 	 	 	 	 	 	 	 
	Your Number

	 	SDSA — RC Liege
208795 BSDE-HR
Maastricht
14062763
	 	Effective date of
Schedule
	 	28 March 2006

	 
	 	 	 	 	 	 	 	 
	Credit Limit

	 	€12,500,000
	 	Commencement Date
	 	27 September 2001

	 
	 	 	 	 	 	 	 	 
	No Charge Period

	 	IBM 45 days
	 	Prepayment

Percentage
	 	(i) 80% of Eligible
IBM Reimbursables (1)
(ii)
80% of Eligible IBM
Receivables

Collateral Value of Stock-in-Trade

	 	(A)	 	100% of paid for IBM Printing Systems Division inventory (other than (a)
machines which
IBM Printing Systems Division 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 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.
	 
	 	(B)	 	IBM Ireland is added as Authorised Supplier as well as IBM Endicott and IBM Singapore

1

 

	 	 	 
	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

	 	A maximum of 4 times per year
and not more than one per
quarter
	 
	 	 
	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

2

 

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

	 	Amended and Restated Stock Pledge
	 
	 	 
	Liens: Charges: Pledges: Fixed
and Floating Charge over all IBM
inventory of SDSA and BSDE 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) BSDE is duly organized
under the laws of the Netherlands and is
registered to conduct business in Belgium,
(ii) SDSA and PFS Web B.V. are duly
organized under the laws of the Kingdom of
Belgium and registered to do business there
(iii) 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, (iv) 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 (v) 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.

3

 

OTHER CONDITIONS

1. Valid and enforceable customary documentation for the Collateral provided by
BSDE, 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; and

8. Liquidation of BSD Europe B.V. is approved on terms that SDSA acknowledges that it
will remain
liable solely for all obligations owed or be come owing by both entities currently under
this Agreement.

FINANCIAL COVENANTS

SDSA and BSDE 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 03/31/06 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 and BSDE 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.

4

 

“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.

5

 

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:

	 	(ii) if to SDSA:
	 
	 	 
	IBM Belgium Financial
Services S.A.
Avenue du
Bourget,
 BE- 42 11 30
Brussels
 VAT BE 424300467

	 	Supplies Distributors S.A. Rue Louis
Blériot 5
 B-4460 Grace-Hollogne
Belgium:
	 
	 	 
	(iii) if to BSDE:

	 	(iv) if to PFS Web B.V.
	 
	 	 
	Business Supplies Distributors
Europe BV
Markt 28,
6211 CF Maastricht
The Nederlands

	 	PFS Web B.V. SPRL
c/o SDSA

Footnotes:

	(1)	 	The maximum value for collateral representing IBM Reimbursables is €2 million.
	 
	(2)	 	All charges are exclusive of any taxes and duties. You agree to pay all applicable
taxes and duties.
	 
	(3)	 	“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.

(4)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

6

 

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:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BUSINESS SUPPLIES DISTRIBUTORS 
EUROPE BV	 	 	 	PFS WEB B.V. SPRL
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signed:	 	 	 	 	 	Signed:	 	 
	 

	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By Name:	 	 	 	 	 	By Name:	 	 
	 

	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signature:	 	 	 	 	 	Signature:	 	 
	 

	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	Date:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

7

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