Line of Credit Commitment Agreement between PC Mall, Inc. and eCOST.com, Inc. dated April 30, 2004
PC Mall, Inc. agrees to provide eCOST.com, Inc. with a line of credit of up to $10 million to be used for working capital needs in the ordinary course of business. The agreement will end upon the earliest of an initial public offering of eCOST, the sale of all or most of eCOST’s assets or stock, or June 30, 2005. Both parties have signed to confirm their acceptance of these terms.
EXHIBIT 10.16
PC Mall, Inc.
2555 W. 190th Street
Torrance, CA 90504
Date: May 4, 2004
eCOST.com, Inc.
2555 West 190th Street
Torrance, California 90504
Attn: Adam Shaffer
Ladies and Gentlemen:
This letter will confirm that PC Mall, Inc. (the “Lender”) will make a line of credit (the “Line of Credit”) available to eCOST.com, Inc. (“eCOST”) in the maximum amount of $10 million.
The Line of Credit shall be used to pay as necessary working capital needs of eCOST arising from expenses and liabilities incurred in the ordinary course of business, and will terminate and mature on the earliest to occur of (a) an initial public offering of some or all of the shares of common stock of eCOST, (b) the sale of all or substantially all of the assets or capital stock of eCOST, or (c) June 30, 2005.
Please evidence your approval of the foregoing by signing and returning to the Lender.
| Very truly yours,
PC MALL, INC. | ||
| By: | /s/ FRANK F. KHULUSI | |
| Print Name: | Frank F. Khulusi |
| Title: | Chief Executive Officer |
| ACCEPTED as of May 4, 2004:
ECOST.COM, INC. | ||
| By: | /s/ ADAM W. SHAFFER | |
| Print Name: | Adam W. Shaffer |
| Title: | Chief Executive Officer |
