Document:

exv10w1w1

Exhibit 10.1(1)

SETTLEMENT -RELEASE AND AMENDMENT NO. 3 TO ADVERTISING DISTRIBUTION AGREEMENT

     This Amendment Number 3 (the “Amendment No. 3”) to that certain Advertising
Distribution Agreement, dated April 1, 2010), amended as of September 30, 2010 (the
“Agreement”) is effective as of August 9, 2011 (the “Amendment No. 3 Effective
Date”) and is entered into by and between SuperMedia LLC (“SuperMedia”) and Local.com
Corporation (“Local”).

RECITALS

     WHEREAS, the parties entered into the Agreement to permit Local to distribute advertising on
behalf of SuperMedia; and

     WHEREAS, the parties now, among other things, wish to: (i) modify the parties’ traffic
assignment obligations until December 31, 2011, and terminate all traffic assignments to SuperMedia
by Local as of January 1, 2012 ***; (ii) terminate all rights and obligations of the parties in
relation to requests for and provision of ***; and (iii) modify the rights and obligations in
relation to requests for and provision of PFP Ads, including to ***

     NOW, THEREFORE, the parties, in consideration of the terms and conditions herein, agree as
follows:

TERMS AND CONDITIONS

	1.	 	AMENDMENTS.

(a) Defined Terms. All terms not defined in this Amendment No. 3 are used as defined in
the Agreement.

(b) Section 1. Definitions. Section 1 of the Agreement is hereby amended to (i) amend the
definition of “Distribution Channels” and (ii) amend and restate all definitions that
include*** so as to delete such references, including, but not limited to, amending and
restating the following definitions to read as follows and deleting the definition of ***

h. “Distribution Channels” shall have the meaning ascribed to it in Section
3.b. hereof.

v. “SuperMedia Ads” is another reference to PFP Ads.

x. “Technical Requirements” means the “Superpages.com XML API & Display
Requirements for PFP Advertising” document, a copy of which will be provided upon
Local’s request, as such document may be modified by SuperMedia from time to time
upon written notice to Local; provided, such modifications shall not require the
display of the SuperMedia Marks unless the parties otherwise agree to such
requirement in writing.

(c) Section 2 — Term. Section 2 of the Agreement is hereby amended and restated to
read as follows:

 

			
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     2. Term. This Agreement as amended shall terminate as of June 30, 2013, subject
to the early termination provisions set forth in Section 6.f. of this Agreement.

(d) Section 3 — Distribution and Display of SuperMedia Ads. Section 3 of the Agreement is
hereby amended to: (i) amend and restate Subsection 3.a. to revise SuperMedia’s and
Local’s agreement with respect to ***; (ii) amend and restate Subsection 3.b. in its
entirety so as to delete the reference to “*** and *** as of the Amendment No. 3
Effective Date and (iii) (A) amend and restate Subsections 3.d.vi and Exhibit F as
of the Amendment No. 3 Effective Date to *** and (B) delete Subsection 3.d.v. as
of January 1, 2012, all so that there is no longer any right by SuperMedia to receive
nor obligation to pay (with the payment obligation ending per Section 2 of this Amendment
No. 3) *** as January 1, 2012; the forementioned amendments and restatements to
read as follows:

     3. Distribution and Display of SuperMedia Ads

a. Non-Exclusive Relationship. The relationship
contemplated by this Agreement is non-exclusive. Local may
display PFP Ads together with similar ads received from other
sources, subject to the restrictions set forth in Section 3.b.i
below, and SuperMedia may distribute PFP Ads directly and
through other distributors and networks. Local may also choose
to display no PFP Ads whatsoever, in its sole and absolute
discretion, notwithstanding anything to the contrary set forth
elsewhere in this Agreement.

     b. Distribution and Display. Subject to its
compliance with the terms and conditions of this Agreement,
Local shall have the right to place and display PFP Ads within
the Distribution Channels in the same relative sequence,
priority, order, placement, format, manner and language as
provided by SuperMedia, without alteration, subject at all times
to the exceptions set forth in Section 3.d.iii. of the
Agreement. Subject to the foregoing restriction, PFP Ads may be
commingled with similar ads received from other sources
and displayed to the user. (e.g. If only 5 of 25 PFP Ads
delivered by SuperMedia are displayed in response to a
particular Search, the only 5 PFP Ads which may be displayed are
the first 5 PFP Ads provided by SuperMedia. But as long as
those first 5 PFP Ads are displayed in the same relative
sequence, priority, order, placement, format, manner and
language in which they are received from SuperMedia, they may be
commingled with similar ads received from other sources, and
need not be displayed as a distinct group.) For purposes of
this Agreement, “Distribution Channels” means the Local Featured
Advertising Section, the Local Marketplace Section, the Local
Syndication Network, the Local Third-Party Distribution Network,
and the Octane Network. It is

 

			
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further understood that Local may place PFP Ads with its
Third-Party Distribution Network upon written mutual agreement
of the parties (email sufficing).

d. Local’s Obligation

     vi. Additional Traffic Assignment and Payment. In
connection with the ***described in Section 4. a. (ii), ***
shall use commercially reasonably efforts to pace the provision
of such UV’s so that SuperMedia shall receive ***UV’s per month.

(e) Section 4 — Compensation. Effective as of July 22, 2011, Section 4.a. of
the Agreement is hereby amended and restated to read as follows:

a. Payments

     (i) All PFP Ads. Subject to initial adjustments taken per Section
4.b. of the Agreement, SuperMedia will pay Local a Revenue Share of ***.

     (ii) U.V. Fee. If Local delivers *** in accordance with Section
3.d.vi of this Agreement, then SuperMedia shall pay Local*** Should
Local fail to deliver the *** SuperMedia will deduct a pro rata amount of
the *** related to such shortfall (e.g., ***shortfall in UV’s shall
result in a *** deduction) from the ***due to Local pursuant to Section
4.a.i.

     (iii) Early Termination Fee. If either SuperMedia or Local elects
to reduce the term of the Agreement pursuant to Section 6.f. hereof,
then***. (notwithstanding Section 4.c.i. ).

(f) Section 6 — Termination. Section 6 is hereby amended to (i) amend and
restate Subsection 6.d. and (ii) add Subsection 6.f.; the forementioned
additions, amendments and restatements to read as follows:

d. Change of Control. If there is a Change of Control of
either party, this Agreement, as amended, will remain in effect
until June 30, 2013 or as terminated as otherwise provided
herein ***.

f. Early Termination. At any time during October 2011,
November 2011 or December 2011, either SuperMedia or Local may
elect to modify the term of the Agreement to have an effective
termination date of December 31, 2012, upon which notice the
Early Termination Fee set forth in Section 4.a.(iii) shall
become due and payable. In the event an election is made by
either party pursuant to this Section 6.f.,

 

			
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the date set forth in Section 6.d. shall from that point forth
be December 31, 2012.

	2.	 	SETTLEMENT, RELEASE AND PAYMENT. In consideration of the amendments and restatements
reflected in this Amendment No. 3 ***. In addition, as additional consideration of the
amendments and restatement reflected in this Amendment No. 3 and in connection with the
payment obligation from SuperMedia to Local, each of SuperMedia and Local shall release and
forever discharge, in law or in equity, the other party hereto, and all of their related and
affiliated entities, predecessors, successors, assigns and agents existing as of the Amendment
No. 3 Effective Date, with respect to any and all claims arising under the Agreement or
otherwise related to UV assignments, PFP Gross Revenue ***, including, but not limited to, any
claims for any additional payments for UV assignments, PFP Gross Revenue *** after the date of
this Amendment No. 3, except for such payments and obligations each party is obligated to pay
and/or meet under this Amendment No. 3.
	 
	 	 	Each of SuperMedia and Local understands and expressly agrees that this release and
discharge extends to all claims of every nature and kind, known and unknown, suspected or
unsuspected, past, present or future, arising from or attributable to the Agreement,
including without limitation, the UV assignment, PFP Gross Revenue *** under the Agreement,
or otherwise, as well as any related conduct of SuperMedia or Local, or their respective
successors, predecessors, subsidiaries, affiliates, parent organizations, divisions,
owners, officers, directors, employees, assigns, agents, independent contractors,
stockholders, attorneys, representatives and affiliated organizations occurring up until
and including the Amendment No. 3 Effective Date, and any and all rights granted to Local
under Section 1542 of the California Civil Code or to SuperMedia under similar provisions
of Texas law, or any analogous federal law or regulation, are hereby expressly waived.
Section 1542 of the California Civil Code provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEAS
E, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.

	 	 	Each of SuperMedia and Local for itself and its respective assigns, successors,
predecessors, subsidiaries, affiliates, parent organizations, divisions, owners, officers,
directors, employees, assigns, agents, independent contractors, stockholders, attorneys,
representatives and affiliated organizations, expressly, knowingly, and voluntarily waives
and relinquishes all rights and benefits afforded by Section 1542 of the California Civil
Code and any similar provisions of Texas law, and in so doing, understands and acknowledges
the significance and consequences of such specific waiver.

	3.	 	FURTHER AGREEMENT. SuperMedia further agrees to (a) *** and (b) *** payable to Local
pursuant to Section 4.a.1. after initial adjustments pursuant to

 

			
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	 	 	Section 4.b. Notwithstanding the foregoing, both parties understand that SuperMedia does
not guarantee ***

	4.	 	ENTIRE AGREEMENT. This Amendment No. 3 together with the Agreement, constitutes the
entire understanding of the parties with respect to the subject matter thereof, and any and
all prior agreements, understandings or representations with respect thereto are hereby
terminated and cancelled in their entirety (effective the date of this Amendment No. 3);
provided, however, that except as specifically amended herein, all other terms and conditions
of the Agreement remain in full force and effect and are hereby ratified. In the event of
inconsistency or conflict between the Agreement and this Amendment No. 3, the terms,
conditions and provisions of this Amendment No. 3 shall govern and control. The terms set
forth in this Amendment No. 3 shall not release a party of any of its obligations or covenants
set forth in the Agreement that accrued prior to the Amendment No. 3 Effective Date.

	5.	 	MISCELLANEOUS. Each party hereto represents and warrants that: (i) it has obtained
all necessary and requisite approvals, consents and authorizations of third parties and
governmental authorities to enter into this Amendment No. 3 and to perform and carry out its
obligations hereunder; (ii) the persons executing this Amendment No. 3 on behalf of each party
have express authority to do so, and, in so doing, to bind the parties thereto; (iii) the
execution, delivery and performance of this Amendment No. 3 does not violate any provision of
any bylaw, charter, regulation, or any other governing authority of the party; and (iv) the
execution, delivery and performance of this Amendment No. 3 has been duly authorized by all
necessary partnership or corporate action and this Amendment No. 3 is a valid and binding
obligation of such party, enforceable in accordance with its terms.

     IN WITNESS WHEREOF, SuperMedia and Local have entered into this Amendment as of this date.

	 	 	 	 	 

	LOCAL.COM CORPORATION

	 	SUPERMEDIA MEDIA LLC
	 
	 	 	 	 
	By:  	/s/ Heath Clarke

		By: 	 /s/ Samuel D. Jones
	 	Name: Heath Clarke

	 		Name: Samuel D. Jones 
	 	Title: Chairman and CEO

	 	 	Title: CFO	 

 

			
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treatment and filed separately with the Securities and Exchange Commissionexv10w1

Exhibit 10.1

SEVENTH AMENDMENT TO

LOAN AND SECURITY AGREEMENT

     THIS SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), is dated as
of May 31 2011, by and between 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 (Western)) (“Lender”), and
PFSWEB RETAIL CONNECT, INC., a Delaware corporation formerly known as eCOST.com, Inc.
(“Borrower”).

WITNESSETH:

     WHEREAS, Borrower and Lender entered into that certain Loan and Security Agreement, dated as
of August 3, 2004 (as amended by (i) that certain First Amendment to Loan and Security Agreement,
by and between Borrower and Lender; (ii) that certain Second Amendment to Loan and Security
Agreement, by and between Borrower and Lender; (iii) that certain Third Amendment to Loan and
Security Agreement, by and between Borrower and Lender; (iv) that certain Fourth Amendment to Loan
and Security Agreement, dated as of March 28, 2007, by and between Borrower and Lender; (v) that
certain Fifth Amendment to Loan and Security Agreement, dated as of January 6, 2009; and (vi) that
certain Sixth Amendment to Loan and Security Agreement, dated as of May 5, 2010, and as modified by
that certain letter agreement dated as of November 29, 2005, (as further amended, restated,
supplemented or otherwise modified through the date hereof, the “Loan Agreement”),
whereunder Lender agreed to make extensions of credit from time to time to, or for the account of,
Borrower;

     WHEREAS, the parties hereto desire to make certain amendments to the Loan Agreement, subject
to the terms hereof;

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

     SECTION 1. Defined Terms. Unless otherwise defined herein, all capitalized terms
used herein have the meanings assigned to such terms in the Loan Agreement, as amended hereby.

     SECTION 2. Amendments. Upon the Amendment Effective Date (as hereinafter defined),
the Loan Agreement shall be amended as follows:

     (a) The following definitions are hereby added to Section 1 of the Loan Agreement in a
manner that maintains alphabetical order:

     “‘Capital Expenditure’ means for a period, any expenditure of money during such
period for the purchase of any capital asset (excluding any software that is internally
developed by Borrower, whether or not Borrower capitalized the development costs).”

     ‘“Maturity Date’ shall have the meaning set forth in Section 12.1(a)
hereof.”

     (b) Section 1.39 of the Loan Agreement is hereby deleted in its entirety and replaced
with the following:

          ‘“Interest Rate’ shall mean,

          (a) Subject to clause (b) of this definition below:

Seventh Amendment to 

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     (i) as to Prime Rate Loans, a rate per annum equal to the Prime Rate
plus one percent per annum (1.00%),

     (ii) as to Eurodollar Rate Loans, a rate per annum equal to the Adjusted
Eurodollar Rate (in each case, based on the Eurodollar Rate applicable for the
Interest Period selected by Borrower, as in effect three (3) Business Days after the
date of receipt by Lender of the request of Borrower for such Eurodollar Rate Loans
in accordance with the terms hereof, whether such rate is higher or lower than any
rate previously quoted to Borrower), plus three and one-half percent (3.50%)
per annum.

     (b) Notwithstanding anything to the contrary contained in clause (a) of this
definition, the Interest Rate shall mean the rate of two percent (2.00%) per annum in excess
of the rate per annum calculated pursuant to clause (a) of this definition, at
Lender’s option, without notice, (i) either (A) for the period on and after the date of
termination hereof until such time as all Obligations are indefeasibly paid and satisfied in
full in immediately available funds, or (B) for the period from and after the date of the
occurrence of any Event of Default, and for so long as such Event of Default is continuing
as determined by Lender and (ii) on the Revolving Loans at any time outstanding in excess of
the amounts available to Borrower under Section 2 (whether or not such excess(es)
arise or are made with or without Lender’s knowledge or consent and whether made before or
after an Event of Default).”

     (c) Section 1.64 of the Loan Agreement is hereby deleted in its entirety and replaced
with the following:

          “1.64 Intentionally deleted.”

     (d) Section 1.7 of the Loan Agreement is hereby deleted in its entirety and replaced
with the following:

          “‘Borrowing Base’ shall mean, at any time, the amount equal to the sum of:

     (a) eighty-five percent (85%) of Eligible Accounts; plus

     (b) the least of:

     (i) fifty-five percent (55%) of the Value of Eligible Inventory, or

     (ii) eighty-five percent (85%) of the Appraised Inventory Value of
Eligible Inventory, or

     (iii) Two Million Dollars ($2,000,000), less

     (c) any Reserves.

     For purposes only of applying the sublimit on Revolving Loans based on Eligible Inventory set
forth in clause (b)(iii) above, Lender may treat the then undrawn amounts of outstanding Letter of
Credit Accommodations for the purpose of purchasing Eligible Inventory as Revolving Loans to the
extent Lender is in effect basing the issuance of the Letter of Credit Accommodations on the Value
or Appraised Inventory Value of the Eligible Inventory being purchased with such Letter of Credit
Accommodations. In determining the actual amounts of such Letter of Credit Accommodations to be so
treated for purposes of the sublimit, the outstanding Revolving Loans and Reserves shall be
attributed first to any components of the lending formulas set forth above that are not subject to
such sublimit, before being attributed to the components of the lending formulas subject to such
sublimit.”

Seventh Amendment to

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     (e) Section 2.2(b) of the Loan Agreement is hereby deleted in its entirety and
replaced as follows:

     “(b) In addition to any charges, fees or expenses charged by any bank or issuer in
connection with the Letter of Credit Accommodations, Borrower shall pay to Lender a letter
of credit fee at a rate equal to two and one-half percent (2.50%) per annum on the daily
outstanding balance of the Letter of Credit Accommodations for the immediately preceding
month (or part thereof), payable in arrears as of the first day of each succeeding month,
except that Borrower shall pay to Lender such letter of credit fee, at Lender’s option,
without notice, at a rate equal to four and one-half percent (4.50%) per annum on such daily
outstanding balance for: (i) the period from and after the date of termination hereof until
Lender has received full and final payment of all Obligations (notwithstanding entry of a
judgment against Borrower) and (ii) the period from and after the date of the occurrence of
an Event of Default for so long as such Event of Default is continuing as determined by
Lender. Such letter of credit fee shall be calculated on the basis of a three hundred sixty
(360) day year and actual days elapsed and the obligation of Borrower to pay such fee shall
survive the termination or non-renewal of this Agreement.”

     (f) Section 3.2(e) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following:

     “(e) Except in Lender’s discretion, the amount of all outstanding Letter of Credit
Accommodations and all other commitments and obligations made or incurred by Lender in
connection therewith shall not at any time exceed One Million Dollars ($1,000,000).”

     (g) Section 3.4 of the Loan Agreement is hereby deleted in its entirety and replaced
with the following:

          “3.4 Intentionally deleted.”

     (h) Section 3.5 of the Loan Agreement is hereby deleted in its entirety and replaced
with the following:

     “3.5 Unused Line Fee. Borrower shall pay to Lender, on a monthly basis, an
unused line fee at a rate equal to three-eighths of one percent (0.375%) per annum
calculated upon the amount by which Three Million Dollars ($3,000,000) exceeds the average
daily principal balance of the outstanding Revolving Loans and Letter of Credit
Accommodations during the immediately preceding month (or part thereof) while this Agreement
is in effect and for so long thereafter as any of the Obligations are outstanding, which fee
shall be due and payable to Lender on the first day of each month, in arrears;
provided, that the foregoing Three Million Dollar ($3,000,000) amount shall
be increased to Seven Million Five Hundred Thousand ($7,500,000) if
the aggregate sum of the outstanding Revolving Loans and Letter of Credit Accommodations for
the immediately preceding month (or part thereof) exceeds Two Million Five Hundred Thousand
($2,500,000) at any time.”

     (i) Section 7.3(d) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following:

     “(d) upon Lender’s request, Borrower shall, at its expense, no more than one (1) time
in any twelve month period in the case of both desktop appraisals and full appraisals, but
at any time and as many times as Lender may request on or after an Event of Default, deliver
or cause to be delivered to Lender, Acceptable Appraisals as to the Inventory;”

Seventh Amendment to 

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     (j) The introduction in the first sentence of Section 7.7 of the Loan Agreement
is hereby deleted in its entirety and replaced with the following:

     “From time to time as requested by Lender, at the cost and expense of Borrower, no more
than two (2) times in any twelve month period (which number shall be no more than three (3)
times in any twelve month period if, as of the applicable date of determination, the sum of
the aggregate outstanding Revolving Loans and Letter of Credit Accommodations hereunder
exceeds One Million Dollars ($1,000,000)), and at any time or as many times as Lender may
request upon the occurrence and during the continuation of an Event of Default,”

     (k) Section 9.9(b) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following:

     “(b) purchase money Indebtedness (including Capital Leases) arising after the date
hereof to the extent secured by purchase money security interests in Equipment (including
Capital Leases) and purchase money mortgages on Real Property not to exceed One Million
Dollars ($1,000,000) in the aggregate at any time outstanding so long as such security
interests and mortgages do not apply to any property of Borrower other than the Equipment or
Real Property so acquired, and the Indebtedness secured thereby does not exceed the cost of
the Equipment or Real Property so acquired, as the case may be;”

     (l) Section 9.10(g) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following:

     “(g) Borrower may make advances to its employees not to exceed Fifty Thousand Dollars
($50,000) in the aggregate outstanding at any time; and”

     (m) Section 9.10(h) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following:

          “(h) Intentionally deleted.”

     (n) Section 9.11 of the Loan Agreement is hereby deleted in its entirety and replaced
with the following:

     “9.11 Dividends and Redemptions. Neither Borrower nor any of its Subsidiaries
shall, directly or indirectly, declare or pay any dividends on account of any shares of any
class of Capital Stock of Borrower or such Subsidiary, as the case may be, now or hereafter
outstanding, or set aside or otherwise deposit or invest any sums for such purpose, or
redeem, retire, defease, purchase or otherwise acquire any shares of any class of Capital
Stock (or set aside or otherwise deposit or invest any sums for such purpose) for any
consideration or apply or set apart any sum, or make any other distribution (by reduction of
capital or otherwise) in respect of any such shares or agree to do any of the foregoing,
except (a) in any case, dividends may be made in the form of shares of Capital Stock
consisting of common stock and (b) any Subsidiary of Borrower may pay dividends to
Borrower;.”

     (o) Section 9.20(f) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following:

     “(f) all out-of-pocket expenses and costs heretofore and from time to time hereafter
incurred by Lender during the course of periodic field examinations of the Collateral and
Borrower’s operations, plus a per-diem charge at the then-standard rate of Lender, per
person, per

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day for Lender’s examiners in the field and office (which rate is currently $1,200 per
person, per day);”

     (p) A new Section 9.22 of the Loan Agreement is hereby added to the Loan Agreement, to
read as follows:

     “9.22 Capital Expenditures. Borrower shall not incur or contract to incur
Capital Expenditures of more than $500,000 in the aggregate during any fiscal year.”

     (q) Section 12.1(a) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following:

     “(a) This Agreement and the other Financing Agreements shall become effective as of the
date set forth on the first page hereof and shall continue in full force and effect for a
term ending on May 31, 2012 (the “Maturity Date”). Borrower may terminate this
Agreement at any time upon ten (10) days’ prior, written notice to Lender (which notice
shall be irrevocable) and Lender may terminate this Agreement at any time on or after the
occurrence of an Event of Default. Upon the effective date of termination of this
Agreement, Borrower shall pay to Lender, in full, all outstanding and unpaid Obligations and
shall furnish cash collateral to Lender (or at Lender’s option, a letter of credit issued
for the account of Borrower and at Borrower’s expense, in form and substance satisfactory to
Lender, by an issuer acceptable to Lender and payable to Lender as beneficiary) in such
amounts as Lender determines are reasonably necessary to secure (or reimburse) Lender from
loss, cost, damage or expense, including attorneys’ fees and legal expenses, in connection
with any contingent Obligations, including issued and outstanding Letter of Credit
Accommodations and checks or other payments provisionally credited to the Obligations and/or
as to which Lender has not yet received final and indefeasible payment and any continuing
obligations of Lender to any bank, financial institution or other Person under or pursuant
to any Deposit Account Control Agreement or Investment Property Control Agreement. Such
payments in respect of the Obligations and cash collateral shall be remitted by wire
transfer in Federal funds to such bank account of Lender, as Lender may, in its discretion,
designate in writing to Borrower for such purpose. Interest shall be due until and including the next
Business Day, if the amounts so paid by Borrower to the bank account designated by Lender
are received in such bank account later than 12:00 noon, Los Angeles time.”

     (r) Section 12.1(c) of the Loan Agreement is hereby deleted in its entirety and
replaced with the following:

          “(c) Intentionally deleted.”

     (s) Each reference to “Renewal Date” in the Loan Agreement is hereby deleted and replaced with
a reference to “Maturity Date”.

     SECTION 3. Amendment Fee. Borrower shall pay Lender an amendment fee in the amount of
$5,000, which shall be due and payable in full, and fully earned by Lender, on the Amendment
Effective Date.

     SECTION 4. Representations, Warranties and Covenants of Borrower. Borrower represents
and warrants to Lender, and agrees that:

     (a) the representations and warranties contained in the Loan Agreement (as amended hereby) and
the other outstanding Financing Agreements are true and correct in all material respects at and as
of the date hereof as though made on and as of the date hereof, except (i) to the extent
specifically made

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with regard to a particular date and (ii) for such changes as are a result of any act or
omission specifically permitted under the Loan Agreement (or under any Loan Document), or as
otherwise specifically permitted by Lender;

     (b) on the Amendment Effective Date, after giving effect to this Amendment, no Default or
Event of Default will have occurred and be continuing;

     (c) the execution, delivery and performance of this Amendment have been duly authorized by all
necessary action on the part of, and duly executed and delivered by, Borrower, and this Amendment
is a legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance
with its terms, except as the enforcement thereof may be subject to the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors’ rights
generally and general principles of equity (regardless of whether such enforcement is sought in a
proceeding in equity or at law); and

     (d) the execution, delivery and performance of this Amendment do not conflict with or result
in a breach by Borrower of any term of any material contract, loan agreement, indenture or other
agreement or instrument to which Borrower is a party or is subject.

     SECTION 5. Conditions Precedent to Effectiveness of Amendment. This Amendment shall
become effective (the “Amendment Effective Date”) upon satisfaction of each of the
following conditions:

     (a) Each of Borrower and Lender shall have executed and delivered to Lender this Amendment,
and such other documents as Lender may reasonably request;

     (b) PFSweb, Inc. shall have executed and delivered a Reaffirmation of Guaranty in the form
attached to this Amendment;

     (c) No Default or Event of Default shall have occurred and be continuing; and

     (d) All legal matters incident to the transactions contemplated hereby shall be reasonably
satisfactory to counsel for Lender.

     SECTION 6. Execution in Counterparts. This Amendment may be executed in counterparts,
each of which when so executed and delivered shall be deemed to be an original and all of which
taken together shall constitute but one and the same instrument. Delivery of an executed
counterpart of this Amendment by telefacsimile, “.pdf file” or other electronic method of
transmission shall be equally as effective as delivery of an originally executed counterpart of
this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile,
“.pdf file” or other electronic method of transmission also shall deliver an originally executed
counterpart of this Amendment but the failure to deliver an originally executed counterpart shall
not affect the validity, enforceability, and binding effect of this Amendment.

     SECTION 7. Costs and Expenses. Borrower hereby affirms its obligation under
Section 9.20 of the Loan Agreement to reimburse Lender for all expenses (including
reasonable attorneys’ fees) paid or incurred by Lender in connection with the preparation,
negotiation, execution and delivery of this Amendment.

     SECTION 8. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE INTERNAL
CONFLICTS OF LAWS PROVISIONS THEREOF.

Seventh Amendment to 

Loan and Security Agreement

6

 

     SECTION 9. Successors and Assigns. This Amendment shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors and assigns.

     SECTION 10. Effect of Amendment; Reaffirmation of Financing Agreements. The parties
hereto agree and acknowledge that (a) nothing contained in this Amendment in any manner or respect
limits or terminates any of the provisions of the Loan Agreement or the other outstanding Financing
Agreements other than as expressly set forth herein and (b) the Loan Agreement (as amended hereby)
and each of the other outstanding Financing Agreements remain and continue in full force and effect
and are hereby ratified and reaffirmed in all respects. Upon the effectiveness of this Amendment,
each reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words
of similar import shall mean and be a reference to the Loan Agreement, as amended hereby.

     SECTION 11. Headings. Section headings in this Amendment are included herein for
convenience of any reference only and shall not constitute a part of this Amendment for any other
purposes.

     SECTION 12. Release. BORROWER HEREBY ACKNOWLEDGES THAT AS OF THE DATE HEREOF 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, ITS AFFILIATES AND PARTICIPANTS, OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, AGENTS,
EMPLOYEES OR ATTORNEYS. BORROWER HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES
LENDER, ITS AFFILIATES AND PARTICIPANTS, AND THEIR RESPECTIVE PREDECESSORS, AGENTS, OFFICERS,
DIRECTORS, 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 BORROWER
MAY NOW OR HEREAFTER HAVE AGAINST LENDER AND ITS PREDECESSORS, AGENTS, OFFICERS, DIRECTORS,
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 THE LIABILITIES,
THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR OTHER FINANCING AGREEMENTS, AND
NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT. BORROWER HEREBY COVENANTS AND AGREES NEVER TO
INSTITUTE ANY ACTION OR SUIT AT LAW OR IN EQUITY, NOR INSTITUTE, PROSECUTE, OR IN ANY WAY AID IN
THE INSTITUTION OR PROSECUTION OF ANY CLAIM, ACTION OR CAUSE OF ACTION, RIGHTS TO RECOVER DEBTS OR
DEMANDS OF ANY NATURE AGAINST LENDER, ITS AFFILIATES AND PARTICIPANTS, OR THEIR RESPECTIVE
SUCCESSORS, AGENTS, ATTORNEYS, OFFICERS, DIRECTORS, EMPLOYEES, AND PERSONAL AND LEGAL
REPRESENTATIVES ARISING ON OR BEFORE THE DATE HEREOF OUT OF OR RELATED TO LENDER’S ACTIONS,
OMISSIONS, STATEMENTS, REQUESTS OR DEMANDS IN ADMINISTERING, ENFORCING, MONITORING, COLLECTING OR
ATTEMPTING TO COLLECT THE OBLIGATIONS OF BORROWER TO LENDER, WHICH OBLIGATIONS WERE EVIDENCED BY
THE LOAN AGREEMENT AND THE OTHER FINANCING AGREEMENTS.

[Signature page follows]

Seventh Amendment to 

Loan and Security Agreement

7

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and
delivered as of the date first above written.

	 	 	 	 	 	 	 

	 	 	PFSWEB RETAIL CONNECT, INC., a Delaware	 	 
	 	 	corporation formerly known as eCOST.com, Inc., as	 	 
	 	 	Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	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 (Western)), as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Signature Page to Seventh Amendment to 

Loan and Security Agreement

 

 

Reaffirmation of Guaranty

     The undersigned hereby (i) consents and agrees to the terms and provisions of the foregoing
Amendment and each of the transactions contemplated thereby, and confirms and agrees that all
references in the Financing Agreements to the “Loan Agreement” shall mean the Loan Agreement as
amended by the foregoing Amendment, and (ii) agrees that that certain Guaranty, dated as of March
31, 2006 (the “Guaranty”), executed by the undersigned, in favor of Lender, remains in full
force and effect and continues to be the legal, valid and binding obligation of the undersigned
enforceable against the undersigned in accordance with its terms.

     Furthermore, the undersigned hereby agrees and acknowledges that (a) the Guaranty executed by
the undersigned is not subject to any claims, defenses or offsets, (b) nothing contained in the
foregoing Amendment shall adversely affect any right or remedy of Lender under the Guaranty
executed by the undersigned or any other agreement executed by the undersigned in connection
therewith, (c) the execution and delivery of the foregoing Amendment or any agreement entered into
by Lender in connection therewith shall in no way reduce, impair or discharge any obligations of
the undersigned pursuant to the Guaranty executed by the undersigned, and shall not constitute a
waiver by Lender of Lender’s rights against the undersigned under the Guaranty executed by the
undersigned, (d) the consent of the undersigned is not required to the effectiveness of the
foregoing Amendment and (e) no consent by the undersigned is required for the effectiveness of any
future amendment, modification, forbearance or other action with respect to the Loan Agreement or
any present or future Financing Agreement (other than the Guaranty executed by the undersigned).

	 	 	 	 	 	 	 

	 	 	PFSWEB, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Reaffirmation of Guaranty

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