Attachment A (“Attachment A”) TO
AGREEMENT FOR INVENTORY FINANCING
DATED MARCH 29, 2002
EFFECTIVE DATE OF THIS ATTACHMENT A: March 31, 2012
SECTION I. BORROWER/LOAN PARTIES:
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(A) BORROWER: |
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ORGANIZATION NO. (Assigned by State of Org). |
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Supplies Distributors, Inc. |
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3416326 |
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(B) ADDITIONAL LOAN PARTIES: |
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Business Supplies Distributors Holdings, LLC |
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3410894 |
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Priority Fulfillment Services, Inc. |
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2606094 |
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PFSweb, Inc. |
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3062550 |
SECTION II. FEES, RATES AND REPAYMENT TERMS:
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(A) |
Credit Line: Twenty-five Million Dollars ($25,000,000.00) until and including June 30, 2012, and Twenty Million Dollars ($20,000,000.00) at all times thereafter
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In the event that the amount of any Participation is reduced or any Participation Agreement expires or is
terminated for any reason, the Credit Line shall be reduced, upon forty-five (45) days written notice by IBM Credit to Borrower, by an amount equal to the amount that is no longer subject to a Participation Agreement as determined by IBM Credit
pursuant to Section 2.1 of the Agreement.
(i) 100% of the
Borrower’s inventory in the Borrower’s possession as of the date of determination as reflected in the Borrower’s most recent Collateral Management Report constituting Products (other than service parts) financed through a Product
Advance by IBM Credit, so long as (1) IBM Credit has a first priority security interest in such Products and (2) such Products are in new and un-opened boxes;
(ii) 80% of price protection payments, credits, discounts, incentive payments, rebated and refunds relating to IBM Products (“Accounts”) in the aggregate not to exceed Two Million Five Hundred
Thousand Dollars ($2,500,000.00) provided that (i) Borrower obtains (and provides to IBM Credit along with the monthly Collateral Management Report required under Section 7.1 (O)) from IBM written confirmation (a) acknowledging the
obligation of IBM to pay such amount or that they have received the billing from the Borrower, (b) stating the date the amount is due to be paid and (c) IBM waiving its right to setoff such amounts owed to Borrower with any amount Borrower
may owe to IBM, (ii) such Accounts do not remain unpaid for more than sixty (60) days from the date the obligation of IBM occurred; and (iii) such Accounts are delivered directly to IBM Credit.
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(C) |
Product Financing Charge: Prime Rate plus 0.50% |
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