|
|
|
| **Excluding all income and losses applicable to (a) 100% ownership in Canadian and European subsidiaries and (b) foreign currency adjustments for each
period but not excluding such foreign currency adjustments for annual periods that must comply with GAAP and excluding revenue from intercompany sales. |
|
|
|
|
| (iii) Total Liabilities to Tangible Net Worth*** |
|
Greater than Zero and Equal to or Less than 7.0:1.0 |
|
|
| ***Accumulated earnings and unrealized foreign currency translation adjustments applicable to Borrower’s Canadian and European subsidiaries are
excluded from calculation of Borrower’s Total Assets and Total Net Worth. |
|
|
2. Business Supplies Distributors Holdings, LLC will be required to maintain the following financial
ratios, percentages and amounts as of the last day of the fiscal period under review (quarterly, annually) by IBM Credit:
|
|
|
| Covenant |
|
Covenant Requirement |
| (i) Revenue on an Annual Basis (i.e. the current fiscal year-to-date Revenue annualized) to Working
Capital |
|
Greater than Zero and Equal to
or Less than 37.0:1.0 |
|
|
| (ii) Net Profit after Tax to Revenue* |
|
Equal to or Greater than 0.15 percent |
|
|
| *Excluding all (a) income and losses applicable to foreign currency adjustments for each period but not excluding such foreign currency adjustments
for annual periods that must comply with GAAP and (b) revenue from intercompany sales. |
|
|
|
|
| (iii) Total Liabilities to Tangible Net Worth |
|
Greater than Zero and Equal to or Less than 7.0:1.0 |
3. 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, annually) by IBM Credit:
|
|
|
|
|
| Covenant |
|
Covenant |
|
As of Date |
| |
|
Requirement |
|
|
| Minimum Tangible Net Worth |
|
$18,000,000.00 |
|
03/31/03 and thereafter |
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