Item 1.01 Entry into a Material Definitive Agreement
On August 25, 2004, Priority Fulfillment Services, Inc. (“PFS”), a
wholly-owned subsidiary of PFSweb, Inc. (“the Company”) entered into a Lease
with Fleet National Bank (“Fleet”) pursuant to which PFS will lease certain
equipment for an initial term of eight years, with options to renew, terminate
prior to the end of the stated term and/or purchase the equipment. The monthly
rent under the lease is $29,847, subject to a rental adjustment based on
interest rates. Under the lease, PFS has indemnified the lessor in respect of
various costs, liabilities and obligations. Upon any default by PFS under the
lease, the lessor has all rights and remedies available at law or in equity,
including the right to accelerate the remaining balance of rent payments and/or
terminate the lease. The Company has guaranteed all obligations of PFS under
the lease. The Company and Fleet are also parties to other equipment leases
pursuant to which the PFS leases other equipment from Fleet.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
See Item 1.01 described above and incorporated herein.