FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
EXHIBIT 10.76
FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
THIS FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of
March 28, 2007, is entered into by and between WACHOVIA BANK, NATIONAL ASSOCIATION, as successor to
Wachovia Capital Finance Corporation (Western) (“Lender”), and XXXXX.XXX, INC., a Delaware
corporation, (“Borrower”).
RECITALS
A. Borrower and Lender are parties to that certain Loan and Security Agreement dated August 3,
2004, as amended by that certain First Amendment to Loan and Security Agreement, that certain
Second Amendment to Loan and Security Agreement and that certain Third Amendment to Loan and
Security Agreement, and as modified by that certain letter agreement dated November 29, 2005 (such
letter agreement, the “Consent”) (as amended, restated, supplemented or otherwise modified
at any time or from time to time, the “Loan Agreement”), pursuant to which Lender has made
certain loans and financial accommodations available to Borrower.
B. Lender and Borrower now wish to amend the Loan Agreement on the terms and conditions set
forth herein.
C. Each of Borrower and Lender is entering into this Amendment with the understanding and
agreement that, except as specifically provided herein, none of Lender’s rights or remedies as set
forth in the Loan Agreement is being waived or modified by the terms of this Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:
1. Defined Terms. Unless otherwise defined in this Amendment, any initially
capitalized terms used in this Amendment shall have the respective meanings ascribed thereto in the
Loan Agreement.
2. Amendments to Loan Agreement.
(a) Accounts Advance Rate. Clause (a) of the definition of “Borrowing Base” in
Section 1.7 of the Loan Agreement is hereby amended and restated to read in its entirety as
follows:
“(a) eighty percent (80%) of Eligible Accounts; plus;”
(b) Inventory Appraisals. Clause (d) of Section 7.3 of the Loan Agreement is hereby
amended and restated to read in its entirety as follows:
“(d) upon Lender’s request, Borrower shall, at its expense, no more than two (2)
times in any twelve (12) month period, but at any time or times as Lender may
request on and after an Event of Default, deliver or cause to be delivered to
Lender, Acceptable Appraisals as to the Inventory;”
(c) Section 9.17 of the Loan Agreement is hereby amended and restated to read in its entirety
as follows:
“9.17 Adjusted Tangible Net Worth. Borrower shall maintain a sum of
Adjusted Tangible Net Worth plus the amount of any Indebtedness on account of any
loan by PFSweb or its Affiliates to Borrower of not less than Zero Dollars ($0) as
of the last day of each fiscal quarter (it being understood that no rent reserve for
the Borrower’s leased premises in Memphis, Tennessee will be deducted in calculating
Adjusted Tangible Net Worth).”
(d) The first sentence of Section 12.1(a) of the Loan Agreement is hereby amended and restated
to read in its entirety as follows:
“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, 2009 (the ‘Renewal Date’), and from year to
year thereafter, unless sooner terminated pursuant to the terms hereof.”
(e) Early Termination Fee. The first sentence of Section 12.1(c) of the Loan
Agreement is hereby amended and restated to read in its entirety as follows:
“If for any reason this Agreement is terminated prior to the end of the then current
term or renewal term of this Agreement, in view of the impracticality and extreme
difficulty of ascertaining actual damages and by mutual agreement of the parties as
to a reasonable calculation of Lender’s lost profits as a result thereof, Borrower
agrees to pay to Lender, upon the effective date of such termination, an early
termination fee in the amount of one percent (1.0%) of the Revolving Loan Limit if
such termination is effective on or before May 31, 2008, and one-half of one percent
(0.5%) of the Revolving Loan Limit if such termination is effective after May 31,
2008.”
3. Amendment Fee. Borrower shall pay Lender an amendment fee in the amount of
$15,000, which shall be due and payable, and fully earned by Lender, on the date of this Amendment.
4. Effectiveness of this Amendment. The following shall have occurred before this
Amendment is effective:
(a) Amendment. Lender shall have received this Amendment duly executed by Borrower,
together with the following Acknowledgment by Guarantor duly executed by PFSweb, in a sufficient
number of counterparts for distribution to all parties.
(b) Representations and Warranties. The representations and warranties set forth
herein and in each Financing Agreement (after giving effect to this Amendment) shall be true and
correct (other than any such representations or warranties that, by their terms, are specifically
made as of a date other than the date hereof).
(c) Other Required Documentation. All other documents and legal matters in connection
with the transactions contemplated by this Amendment shall have been delivered or executed or
recorded, as applicable, and shall be in form and substance satisfactory to Lender in all respects.
5. Representations and Warranties. Borrower represents and warrants to Lender as
follows:
(a) Authority and Due Execution. Borrower has all requisite corporate power and
authority to execute and deliver this Amendment, and to perform its obligations hereunder and under
the Financing Agreements (as amended or modified hereby). The execution, delivery and performance
by Borrower of this Amendment (i) are within the power of Borrower, (ii) have been duly authorized
and approved by all necessary corporate action and no other corporate proceedings are necessary to
consummate such transactions, and (iii) have received all necessary governmental approvals, if any,
and do not contravene any law or any contractual obligations or restrictions binding on Borrower.
(b) Enforceability. This Amendment has been duly executed and delivered by Borrower.
This Amendment and each Financing Agreement (as amended or modified hereby) is the legal, valid and
binding obligation of Borrower, enforceable against Borrower in accordance with its terms, and is
in full force and effect.
(c) Representations and Warranties. The representations and warranties contained in
each Financing Agreement (other than any such representations or warranties that, by their terms,
are specifically made as of a date other than the date hereof) are true and correct on and as of
the date hereof as though made on and as of the date hereof.
(d) No Default. No event has occurred and is continuing that constitutes a Default or
an Event of Default.
6. Governing Law. The validity, interpretation, construction and enforcement of this
Amendment and the rights of the parties hereunder, shall be determined under, governed by and
construed in accordance with the internal laws of the State of California but excluding any
principles of conflicts of law or other rule of law that would cause the application of the law of
any jurisdiction other than the laws of the State of California.
7. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties and separate counterparts, each of which when so executed and delivered, shall be
deemed an original, and all of which, when taken together, shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Amendment by
telefacsimile shall be effective as delivery of a manually executed counterpart of this Amendment.
Any party delivering an executed counterpart of this Amendment by
telefacsimile shall also deliver an original executed counterpart, but the failure to do so
shall not affect the validity, enforceability or binding effect of this Amendment.
8. Reference to and Effect on the Financing Agreements.
(a) Upon and after the effectiveness of this Amendment, each reference in the Loan Agreement
to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Loan Agreement,
and each reference in the other Financing Agreements to “the Loan Agreement”, “thereunder”,
“thereof” or words of like import referring to the Loan Agreement, shall mean and be a reference to
the Loan Agreement as modified and amended hereby.
(b) Except as specifically amended above, the Loan Agreement and all other Financing
Agreements, are and shall continue to be in full force and effect and are hereby in all respects
reaffirmed, ratified, approved and confirmed and shall constitute the legal, valid, binding and
enforceable obligations of Borrower to Lender.
(c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of Lender under any of the
Financing Agreements, nor constitute a waiver of any provision of any of the Financing Agreements.
(d) To the extent that any terms and conditions in any of the Financing Agreements shall
contradict or be in conflict with any terms or conditions of the Loan Agreement, after giving
effect to this Amendment, such terms and conditions are hereby deemed modified or amended
accordingly to reflect the terms and conditions of the Loan Agreement as modified or amended
hereby.
9. Estoppel. To induce Lender to enter into this Amendment and to continue to make
advances to Borrower under the Loan Agreement, and without limiting Borrower’s rights to contest
Lender’s monthly statements in accordance with Section 6.2 of the Loan Agreement, Borrower hereby
acknowledges and agrees that, as of the date hereof, there exists no right of offset, defense,
counterclaim or objection in favor of Borrower as against Lender with respect to the Obligations.
10. No Waiver. The execution of this Amendment and acceptance of any other documents
related hereto shall not be deemed to be a waiver of any Event of Default under the Loan Agreement
or any breach, default or event of default under any other Financing Agreement, whether or not
known to Lender and whether or not existing on the date of this Amendment.
11. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of each of Borrower and Lender and their respective successors and assigns.
12. Captions and Headings. The captions or section headings at various places in this
Amendment are intended for convenience only and do not constitute and shall not be interpreted as
part of this Amendment.
13. Integration. This Amendment, together with the other Financing Agreements,
incorporates all negotiations of the parties hereto with respect to the subject matter hereof and
is the final expression and agreement of the parties hereto with respect to the subject matter
hereof.
14. Severability. In case any provision in this Amendment shall be invalid, illegal
or unenforceable, such provision shall be severable from the remainder of this Amendment and the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.
15. No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Amendment. In the event an ambiguity or question of intent or
interpretation arises, this Amendment shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Amendment.
16. No Other Changes. Except as explicitly amended or modified by this Amendment, all
of the terms and conditions of the Loan Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute
and deliver this Amendment as of the date first above written.
| XXXXX.XXX, INC., a Delaware corporation | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| WACHOVIA BANK, NATIONAL ASSOCIATION | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
ACKNOWLEDGEMENT BY GUARANTOR
Dated as of March 28, 2007
The undersigned (“Guarantor”) with respect to its Guaranty made in favor of Lender (as
amended, modified or supplemented, “Guaranty”), hereby acknowledges and agrees to the
foregoing Fourth Amendment to Loan and Security Agreement (the “Amendment”) and confirms
and agrees that its Guaranty is and shall continue to be, in full force and effect and is hereby
ratified and confirmed in all respects except that, upon the effectiveness of, and on and after the
date of the Amendment, each reference in such Guaranty to the Loan Agreement (as defined in the
Amendment), “thereunder”, “thereof” or words of like import referring to the “Loan Agreement”,
shall mean and be a reference to the Loan Agreement as amended or modified by the Amendment.
Although Lender has informed Guarantor of the matters set forth above, and Guarantor has
acknowledged the same, Guarantor understands and agrees that Lender has no duty under the Loan
Agreement, the Guaranty or any other agreement with Guarantor to so notify Guarantor or to seek
such an acknowledgement, and nothing contained herein is intended to or shall create such a duty as
to any advances or transaction hereafter.
| PFSWEB, INC., a Delaware corporation | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
