Document:

THIRD AMENDMENT TO AGREEMENT FOR INVENTORY FINANCING

 Exhibit 10.16 
 AMENDMENT No. 3 
 TO 
 AGREEMENT FOR INVENTORY FINANCING 
 This AMENDMENT (“Amendment”) to
AGREEMENT FOR INVENTORY FINANCING is made as of May 27, 2005 by and between PC CONNECTION, INC., a corporation, duly organized under the laws of the State of Delaware (“PC Connection”),
MERRIMACK SERVICES CORPORATION a corporation, duly organized under the laws of the State of Delaware (“Merrimack”), GOVCONNECTION,
INC., a corporation, duly organized under the laws of the State of Maryland (“GovConnection”), and MOREDIRECT, INC., a corporation, duly organized under
the laws of the State of Florida (“MoreDirect”) (PC Connection, Merrimack, GovConnection and MoreDirect are referred to herein as a “Customer” or, collectively, the “Customers”) and IBM CREDIT LLC,
a Delaware limited liability company, formerly IBM Credit Corporation (“IBM Credit”). 
 RECITALS: 
 WHEREAS, Customers and IBM Credit have entered into that certain Agreement for Inventory Financing dated as of October 31, 2002 (as amended,
supplemented or otherwise modified from time to time, the “Agreement”); and 
 WHEREAS, Customers AND IBM Credit desire to
amend the Agreement as more fully set forth herein. 
 AGREEMENT 
 NOW THEREFORE, in consideration of the premises set forth herein, and for other good and valuable consideration, the value and sufficiency of
which is hereby acknowledged, the parties hereto agree that the Agreement is amended 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. The Agreement is hereby
amended be deleting subsection (A) of Section 4.1 in its entirety and substituting, in lieu thereof, the following: 
 “(A) all goods manufactured or sold by International Business Machines Corporation (“IBM”), Lenovo (United States) Inc. (“Lenovo”) or Lexmark International, Inc. (“Lexmark”) or bearing the trademarks or
trade names of IBM, Lenovo or Lexmark, including, inventory and equipment and all parts thereof, attachments, accessories and accessions thereto, products thereof and documents therefor, but excluding, however, each Customer’s capital
equipment;” 
 Section 3. Representations and Warranties. Customer makes to IBM Credit the following representations and warranties all of
which are material and are made to induce IBM Credit to enter into this Amendment. 
 Section 3.1 Accuracy and Completeness of Warranties and
Representations. All representations made by Customer 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 Customer 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 3.2 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
Customer not to be in compliance with the terms of any agreement to which Customer is a party. 

 Section 3.3 Litigation. Except as has been disclosed by Customer to IBM Credit in writing, there is no
litigation, proceeding, investigation or labor dispute pending or threatened against Customer, which if adversely determined, would materially adversely affect Customer’s ability to perform Customer’s obligations under the Agreement and
the other documents, instruments and agreements executed in connection therewith or pursuant hereto. 
 Section 3.4 Enforceability of Amendment.
This Amendment has been duly authorized, executed and delivered by Customer and is enforceable against Customer in accordance with its terms. 
 Section 4. Ratification of Agreement. Except as specifically amended hereby, all of the provisions of the Agreement shall remain unamended and in full force and effect. Customer hereby, ratifies, confirms and agrees that the
Agreement, as amended hereby, represents a valid and enforceable obligation of Customer, and is not subject to any claims, offsets or defenses. 
 Section 5. Governing Law. This Amendment shall be governed by and interpreted in accordance with the laws which govern the Agreement. 
 Section 6. 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, the duly authorized representatives of the parties hereto have executed this Amendment as of the date first above written.

  

					
	IBM CREDIT LLC,	 		 	PC CONNECTION, INC.
			
	 /s/ Thomas Harahan
	 		 	 /s/ Jack L. Ferguson

	 Thomas Harahan, Manager
	 		 	 Jack L. Ferguson, Treasurer and Interim CFO

	[PLEASE PRINT NAME & TITLE]	 		 	[PLEASE PRINT NAME & TITLE]
			
		 		 	MERRIMACK SERVICES CORPORATION
			
		 		 	 /s/ Jack L. Ferguson

		 		 	 Jack L. Ferguson Treasurer and Interim CFO

		 		 	[PLEASE PRINT NAME & TITLE]
			
		 		 	GOVCONNECTION, INC.
			
		 		 	 /s/ Gary Anderson

		 		 	 Gary Anderson, Treasurer

		 		 	[PLEASE PRINT NAME & TITLE]

 [Signatures continue on following page.] 

					
		 		 	MOREDIRECT, INC.
			
	 	 		 	 /s/ Scott J. Modist

		 		 	 Scott J. Modist C.F.O.

		 		 	[PLEASE PRINT NAME & TITLE]THIRD AMENDMENT TO THE LEASE AGREEMENT

 Exhibit 10.40 
 AMENDMENT NO. 3 TO LEASE 
 THIS AGREEMENT made this 11 day of November, 2005, by and between
EWE WAREHOUSE INVESTMENTS V., LTD., as Lessor and MERRIMACK SERVICES CORPORATION dba PC CONNECTION SERVICES, as Lessee located at 2841-2931 Old State Route 73, Wilmington, Ohio 45177. 
 WITNESSETH: 
 WHEREAS, Lessor and Lessee entered into a Lease dated May 13, 1993,
as amended June 19, 2001, April 24, 2003, and 
 WHEREAS, the Lessor and Lessee desire to amend the Lease of approximately
102,400 square feet to extend the term, revise rent, add a Right to Terminate and add an Option to Renew. 
 NOW THEREFORE, the Lease is
amended as follows. 
 1. Article 1. TERM. shall be revised as follows. 
 Effective December 1, 2005, the term of this Lease shall be extended for an additional four (4) years, for a total term of sixteen
(16) years, two (2) months, commencing October 1, 1993 and ending November 30, 2009, both dates inclusive. 
 2. Lessee
warrants that Lessee has accepted and is now in possession of the Leased Premises and that the Lease is valid and presently in full force and effect. Lessee accepts the Premises in its present “as is” condition. 
 3. Article 3. RENT. shall be revised as follows. 
 For the one (1) year period commencing December 1, 2005 and ending November 30, 2006, the Lessee shall pay to the Lessor as Basic Annual Rent for the Leased Premises the sum of FOUR HUNDRED EIGHTY-SIX
THOUSAND THREE HUNDRED NINETY-NINE AND 96/100 DOLLARS ($486,399.96) which shall be paid in equal monthly installments of FORTY THOUSAND FIVE HUNDRED THIRTY-THREE AND 33/100 DOLLARS ($40,533.33), due and payable on the first day of each month, in
advance, without demand. Checks should be made payable to EWE Warehouse Investments V, Ltd. and sent c/o Easton & Associates, 10165 N.W. 19th Street, Miami, Florida 33172. Said rent shall be paid to the Lessor, or to the duly authorized agent 
  

 1 

 of the Lessor, at its office during business hours. If the commencement date of this Lease is other than the first day of
the month, any rental adjustment or additional rents hereinafter provided for shall be prorated accordingly. The Lessee will pay the rent as herein provided, without deduction whatsoever, and without any obligation of the Lessor to make demand for
it. Any installment of rent accruing hereunder and any other sum payable hereunder, if not paid when due, shall bear interest at the rate of eighteen percent (18%) per annum until paid. The Basic Annual Rent of $486,399.96 shall be adjusted
annually based on any increases in the Consumer Price Index beginning one year after the commencement date of this Lease and at the end of each year thereafter, whether during the term of this Lease or any renewal or extension thereof. Increases in
the Annual Rent shall be made in accordance with the following procedure: 
  

 2 

 a. The index to be used for this adjustment shall be the Consumer Price Index (NORTH CENTRAL REGION, All
Urban Consumers, All Items, 1982-1984 equaling a base of 100, from the U.S. Department of Labor, Bureau of Labor Statistics, Washington, D.C.). 
 b. The Consumer Price Index of 2005 for the month of August shall be the “Base Period Consumer Price Index”. The Consumer Price Index for the month of August in each adjustment year shall be the “Adjustment Period Consumer
Price Index”. 
 c. The Base Period Consumer Price Index shall be subtracted from the Adjustment Period Consumer Price Index; the
difference shall be divided by the Base Period Consumer Price Index. This quotient shall then be multiplied by the $486,399.96, and the result shall then be added to the $486,399.96. The resulting sum shall be the adjusted Annual Rent for such
immediately succeeding leasehold period which shall be paid in equal monthly installments. Notwithstanding the Index, the annual percentage increase shall be capped at four percent (4%).  
 d. If the said Consumer Price Index is, at any time during the term of this Lease, discontinued by the Government, then the most nearly comparable index
shall be substituted for the purpose of the aforesaid calculations. 
 4. The following RIGHT TO TERMINATE. shall be added.

 Lessor shall grant Lessee a Right to Terminate this Lease anytime after the twenty-four months of the extended Lease Term (November 30,
2007) with prior written notice to Lessor no less than one hundred eighty (180) days in advance of intended termination provided Lessee is not in default of the Lease. Lessee shall pay to Lessor as a penalty for early termination the sum
equivalent to $0.50 per square foot per year and prorated based on the number of days remaining on the Lease until the end of the four (4) year extension. The penalty amount shall be paid by Lessee to Lessor upon receipt of Lessee’s
written notice to Lessor at which time Lessor shall invoice Lessee. Such invoice shall be paid immediately upon receipt by Lessee to Lessor. 
 5. OPTION TO RENEW shall be amended as follows. 
 Lessee is hereby granted an option to renew this Lease for an additional
term of four (4) years on the same terms and conditions contained herein except for the rental and the length of the term, upon the conditions that: 
 a. written notice of the exercise of such option shall be given by Lessee to Lessor not less than one hundred eighty (180) days prior to the end of the term of this Lease (by May 31, 2009); and 

 

 3 

 b. at the time of the giving of such notice and at the expiration of the term of this Lease, there are no
defaults in the covenants, agreements, terms and conditions on the part of Lessee to be kept and performed, and all rents are and have been fully paid. Provided also, that the rent to be paid during each year of the said renewal period shall be as
determined in accordance with the following: 
 a. The index to be used for this adjustment shall be the Consumer Price Index (NORTH CENTRAL
REGION, All Urban Consumers, All Items, 1982-1984 equaling a base of 100, from the U.S. Department of Labor, Bureau of Labor Statistics, Washington, D.C.). 
 b. The Consumer Price Index of 2005 for the month of August shall be the “Base Period Consumer Price Index”. The Consumer Price Index for the month of August in each adjustment year shall be the
“Adjustment Period Consumer Price Index”. 
 c. The Base Period Consumer Price Index shall be subtracted from the Adjustment Period
Consumer Price Index; the difference shall be divided by the Base Period Consumer Price Index. This quotient shall then be multiplied by the $486,399.96, and the result shall then be added to the $486,399.96. The resulting sum shall be the adjusted
Annual Rent for such immediately succeeding leasehold period which shall be paid in equal monthly installments. 
 d. If the said Consumer
Price Index is, at any time during the term of this Lease, discontinued by the Government, then the most nearly comparable index shall be substituted for the purpose of the aforesaid calculations. 
 6. Except as expressly amended herein, all other terms and conditions of the Lease remain in full force and effect. 
 IN WITNESS WHEREOF, the Lessor and Lessee have affixed their signatures to duplicates of this Amendment, this 3rd day of November, 2005, as to Lessee and
this 11 day of November, 2005, as to Lessor. 
  

							
	Signed and acknowledged	 	LESSOR:	 	EWE WAREHOUSE INVESTMENTS V, LTD.
	in the presence of:	 		 	By:	 	Miller-Valentine Realty, Inc.
		 		 	Its:	 	Managing Agent

  

 4 

					
	 /s/ Barbara J. Gilmore
	 	By:	 	 /s/ Chuck McCosh

		 		 	Chuck McCosh
	 Barbara J. Gilmore
	 	Its:	 	President
	Print Name	 		 	
			
	 /s/ Michelle Atkinson
	 		 	
			
	 Michelle Atkinson
	 		 	
	Print Name	 		 	

  

					
		 	LESSEE:	 	MERRIMACK SERVICES CORPORATION
		 		 	DBA PC CONNECTION SERVICES
			
	 /s/ Maureen R. Cram
	 	By:	 	 /s/ Robert A. Pratt

	  
 Maureen R. Cram
	 	Title:	 	 Robert Pratt
 Director of Facilities

	Print Name	 		 	
		 		 	
	 /s/ Eric Burbank
	 		 	
			
	 Eric Burbank
	 		 	
	Print Name	 		 	

 [NOTARY ON NEXT PAGE...] 
  

 5 

 STATE OF OHIO, COUNTY OF MONTGOMERY, SS: 
 The foregoing instrument was acknowledged before me this 11 day of November, 2005, by Chuck McCosh, President of Miller-Valentine Realty, Inc., managing
agent for EWE INVESTMENTS V, LTD. 
  

	
	 /s/ Rita A. Hughes

	Notary Public

 STATE OF NH, COUNTY OF Hillsborough, SS: 
 The foregoing instrument was acknowledged before me this 3rd day of November, 2005, by Robert A. Pratt, the Director of Facilities of MERRIMACK SERVICES
CORPORATION DBA PC CONNECTION SERVICES, a corporation on behalf of said corporation. 
  

	
	 /s/ Jennifer A. Losik

	NOTARY PUBLIC

  

 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]