Compucom Receivables Master Trust I 5/7/99

Exhibit 10(K)


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CSI FUNDING, INC.,
as Transferor,


COMPUCOM SYSTEMS, INC.
as Servicer,


PNC BANK, NATIONAL ASSOCIATION
as Agent,


MARKET STREET CAPITAL CORPORATION
as Initial Series 1999-1
Certificateholder,


and


NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION,
as Trustee


on behalf of the Certificateholders


__________________


SERIES 1999-1 SUPPLEMENT


Dated as of May 7, 1999
as amended and restated as of August 20, 1999


to


COMPUCOM RECEIVABLES MASTER TRUST I


POOLING AND SERVICING AGREEMENT


Dated as of May 7, 1999
as amended and restated as of August 20, 1999


__________________


VARIABLE FUNDING ACCOUNTS RECEIVABLE TRUST CERTIFICATES
SERIES 1999-1


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TABLE OF CONTENTS


Page ARTICLE I


DESIGNATION OF CERTIFICATES; PURCHASE AND SALE OF THE SERIES 1999-1 INVESTOR CERTIFICATES
SECTION 1.1 Designation........................................................................ 1
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SECTION 1.2 The Series 1999-1 Certificates..................................................... 1
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SECTION 1.3 Purchases of Interests in the Series 1999-1 Certificates........................... 2
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SECTION 1.4 Delivery........................................................................... 2
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SECTION 1.5 Procedure for Initial Issuance and for Increasing Each Series
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1999-1 Certificateholder's Invested Amount......................................... 2
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SECTION 1.6 Procedure for Decreasing Each Series 1999-1 Certificateholder's
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Invested Amount.................................................................... 3
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SECTION 1.7 Reductions of the Commitments...................................................... 4
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SECTION 1.8 Interest; Commitment Fee, Etc...................................................... 4
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SECTION 1.9 Certificate Rate Limitation........................................................ 6
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ARTICLE II


AGREEMENT MODIFICATIONS
SECTION 2.1 Agreement Modifications............................................................ 6
----------------------- ARTICLE III


DISTRIBUTIONS AND REPORTS
SECTION 3.1 Distributions..................................................................... 16
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SECTION 3.2 Reports, Statements and Notices................................................... 16
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ARTICLE IV


CHANGE IN CIRCUMSTANCES
SECTION 4.1 Requirements of Law............................................................... 18
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SECTION 4.2 Taxes............................................................................. 20
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SECTION 4.3 Indemnity......................................................................... 22
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SECTION 4.4 Limitation........................................................................ 23
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RIGHTS OF CERTIFICATEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS......... 27


Section 4.01 Rights of Certificateholders......................................... 27
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Section 4.02 Establishment of Collection Account.................................. 28
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Section 4.03 Collections and Allocations.......................................... 29
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Section 4.04 Daily Allocations of Collections Allocated to a Series............... 31
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Section 4.05 Determination of Interest Distributable on Investor Certificates..... 31
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Section 4.06 Determination of Principal Distributable on Investor Certificates.... 31
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Section 4.07 Distributions from Series Collection Sub-subaccounts................. 32
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Section 4.08 Funds Unrelated to Receivables....................................... 32
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ARTICLE V


DISTRIBUTIONS AND REPORTS TO CERTIFICATEHOLDERS.................................... 32


Section 5.01 Distributions........................................................ 32
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Section 5.02 Monthly Investor Certificateholders' Statement; Annual Tax
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Statement............................................................ 32
--------- ARTICLE VI


THE CERTIFICATES................................................................... 33


Section 6.01 The Certificates..................................................... 33
----------------
Section 6.02 Authentication of Certificates....................................... 34
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Section 6.03 Registration of Transfer and Exchange of Certificates................ 34
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Section 6.04 Mutilated, Destroyed, Lost or Stolen Certificates.................... 36
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Section 6.05 Persons Deemed Owners................................................ 36
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Section 6.06 Appointment of Paying Agent.......................................... 37
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Section 6.07 Access to List of Certificateholders' Names and Addresses............ 37
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Section 6.08 Authenticating Agent................................................. 38
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Section 6.09 New Issuances........................................................ 39
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Section 6.10 Book-Entry Certificates.............................................. 40
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Section 6.11 Notices to Clearing Agency........................................... 41
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Section 6.12 Definitive Certificates.............................................. 41
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Section 6.13 Letter of Representations............................................ 42
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ARTICLE VII


OTHER MATTERS RELATING TO THE TRANSFEROR........................................... 42


Section 7.01 Liability of the Transferor......................................... 42
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Section 7.02 Merger or Consolidation of, or Assumption of the Obligations of,
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the Transferor...................................................... 42
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TABLE OF CONTENTS
(continued)


Page
SECTION 8.12 Limitation of Payments by Transferor.............................................. 34
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SECTION 8.13 No Bankruptcy Petition............................................................ 34
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SECTION 8.14 The Trustee....................................................................... 34
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SECTION 8.15 Consent to Jurisdiction........................................................... 35
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SECTION 8.16 Credit Agreements................................................................. 35
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ARTICLE IX


DEFINITIONS
SECTION 9.1 Definitions....................................................................... 35
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SCHEDULES


Schedule 1 Commitments Schedule 2 List of Trust Accounts Schedule 3 Initial Invested Amount


EXHIBITS


Exhibit A Form of Notice of Increase Exhibit B Form of Notification of Obligors Exhibit C Form of Commitment Transfer Supplement Exhibit D Form of Series 1999-1 Investor Certificate


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Section 11.08 Successor Trustee........................................59
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Section 11.09 Merger or Consolidation of Trustee.......................60
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Section 11.10 Appointment of Co-Trustee or Separate Trustee............60
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Section 11.11 Tax Returns..............................................61
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Section 11.12 Trustee May Enforce Claims Without Possession of
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Certificates......................................................62
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Section 11.13 Suits for Enforcement....................................62
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Section 11.14 Rights of Certificateholders to Direct Trustee...........62
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Section 11.15 Representations and Warranties of Trustee................63
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Section 11.16 Maintenance of Office or Agency..........................63
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Section 11.17 Statements, Certificates and Reports.....................63
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ARTICLE XII


TERMINATION............................................................64
Section 12.01 Termination of Trust.....................................64
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Section 12.02 Optional Purchase and Series Termination Date of Investor
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Certificates of any Series........................................64
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Section 12.03 Final Payment............................................65
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Section 12.04 Transferor's Termination Rights..........................66
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ARTICLE XIII


MISCELLANEOUS PROVISIONS...............................................67
Section 13.01 Amendment................................................67
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Section 13.02 Protection of Right, Title and Interest of Trust.........68
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Section 13.03 Limitation on Rights of Certificateholders...............69
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Section 13.04 Governing Law............................................70
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Section 13.05 Notices..................................................70
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Section 13.06 Severability of Provisions...............................70
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Section 13.07 Assignment...............................................71
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Section 13.08 Certificates Nonassessable and Fully Paid................71
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Section 13.09 Further Assurances.......................................71
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Section 13.10 No Waiver; Cumulative Remedies...........................71
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Section 13.11 Counterparts.............................................71
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Section 13.12 Third-Party Beneficiaries................................71
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Section 13.13 Actions by Certificateholders............................71
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Section 13.14 Merger and Integration...................................72
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Section 13.15 Headings.................................................72
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Section 13.16 Enhancement Providers....................................72
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Section 13.17 Schedules and Exhibits...................................73
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Section 13.18 Assignment of Related Property...........................73
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Section 13.19 No Proceedings...........................................73
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Section 13.20 Texas Limited Liability Company Act......................73
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(b) The Series 1999-1 Certificates shall, upon issue, be executed and delivered by the Transferor to the Trustee for authentication and redelivery as provided in Section 1.4 hereof and Section 6.01 of the Agreement.
----------- ------------


SECTION 1.3 Purchases of Interests in the Series 1999-1 Certificates.
-------------------------------------------------------- (a) Initial Purchase. Subject to the terms and conditions of this Supplement,
---------------- the Initial Series 1999-1 Certificateholder hereby agrees (A) to purchase on the Issuance Date a Series 1999-1 Certificate in an amount equal to the Initial Invested Amount and (B) to maintain the Invested Amount of its Series 1999-1 Certificate during the Revolving Period, subject to decrease during the Revolving Period, in accordance with the provisions of this Supplement. Payments by the Initial Series 1999-1 Certificateholder in respect of its Series 1999-1 Certificate shall be made in immediately available funds on the Issuance Date to the Agent for payment to the Transferor.


(b) Maximum Invested Amount. Notwithstanding anything to the contrary
----------------------- contained in this Supplement, at no time shall the Invested Amount of any Series 1999-1 Certificateholder exceed such Series 1999-1 Certificateholder's Commitment at such time.


SECTION 1.4 Delivery. On the Issuance Date, the Transferor shall sign
-------- on behalf of the Trust and shall deliver to the Trustee pursuant to Section 6.01
------------ of the Agreement, and the Trustee, upon receipt, shall so authenticate the initial Series 1999-1 Certificate in the name of the Initial Series 1999-1 Certificateholder and with a Commitment Percentage of 100% and deliver such Series 1999-1 Certificate to the Initial Series 1999-1 Certificateholder. The Trustee shall mark on its books the actual Invested Amount of each Series 1999-1 Certificateholder outstanding on any date of determination, which, absent manifest error, shall constitute prima facie evidence of such outstanding
----- ----- Invested Amount from time to time.


SECTION 1.5 Procedure for Initial Issuance and for Increasing Each
------------------------------------------------------ Series 1999-1 Certificateholder's Invested Amount. (a) Subject to Section 1.5(b) ------------------------------------------------- -------------- of this Supplement, on the Issuance Date, the Initial Series 1999-1 Certificateholder agrees to purchase a Series 1999-1 Certificate in accordance with Section 1.3(a) of this Supplement and on any Payment Date during the
-------------- Revolving Period, each Series 1999-1 Certificateholder agrees that the Series 1999-1 Aggregate Invested Amount may be increased by increasing pro rata based upon Commitment Percentage each Series 1999-1 Certificateholder's Invested Amount (an "Increase"), up to an amount, with respect to each such Series 1999-1
-------- Certificateholder, not exceeding such Series 1999-1 Certificateholder's Commitment, upon the request of the Servicer or the Transferor on behalf of the Trust (each date on which an increase in the Series 1999-1 Aggregate Invested Amount occurs hereunder being herein referred to as the "Increase Date"
------------- applicable to such Increase); provided, however, that the Servicer or the
-------- ------- Transferor, as the case may be, shall have given the Agent irrevocable written notice (effective upon receipt) (with a copy thereof to the Trustee and, as applicable, the Transferor or the Servicer), substantially in the form of Exhibit A hereto, of such request no later than two Business Days prior to such --------- Increase Date. Such notice shall state (x) the Issuance Date or the Increase Date, as the case may be which, in the case of an


2


THIS POOLING AND SERVICING AGREEMENT, dated as of May 7, 1999 as amended and restated as of August 20, 1999, is by and among CSI FUNDING, INC., a Delaware corporation, as Transferor, COMPUCOM SYSTEMS, INC., a Delaware corporation, as Servicer, and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, a national banking association, as Trustee.


This Pooling and Servicing Agreement shall be applicable to the maintenance of the Trust and the governance of the Transferor Certificate and, upon the execution of any Supplement, shall apply also to the issuance of any Series of Certificates issued thereby.


In consideration of the mutual agreements herein contained, each party agrees as follows for the benefit of the other parties, for the benefit of the Certificateholders and for the benefit of any Enhancement Provider with respect to any Series to the extent provided herein:


ARTICLE I


DEFINITIONS


Section 1.01 Definitions. For all purposes of this Agreement, except as
----------- otherwise expressly provided herein or unless the context otherwise requires, capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the Definitions attached hereto as Annex X which is
------- incorporated by reference herein. All other capitalized terms used herein shall have the meanings specified herein.


"Agreement" means this Pooling and Servicing Agreement as it may from time
--------- to time be amended, supplemented or otherwise modified in accordance with the terms hereof, including by any Supplement.


Section 1.02 Other Definitional Provisions.
-----------------------------


(a) All terms defined in any Supplement or this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein.


(b) As used herein and in any certificate or other document made or delivered pursuant hereto to thereto, accounting terms not defined in Annex X or
------- otherwise defined herein, and accounting terms partly defined in Annex X or
------- otherwise defined herein, to the extent not defined, shall have the respective meanings given to them under GAAP. To the extent that the definitions of accounting terms herein or in Annex X are inconsistent with the meanings of such
------- terms under GAAP, the definitions contained herein or in Annex X shall control.
-------


(c) The agreements, representations and warranties of CompuCom in this Agreement in its capacity as Servicer shall be deemed to be the agreements, representations and warranties of CompuCom solely in such capacity.


(d) The words "hereof," "herein" and "hereunder" and words of similar
------ ------ --------- import when used in this Agreement or any Supplement shall refer to such Supplement or this Agreement, as the case may be, as a whole and not to any particular provision of such Supplement or this Agreement, as the case may be; and Section, Schedule and Exhibit references contained in this Agreement or any Supplement are references to Sections, Schedules and Exhibits in or to this Agreement or such Supplement unless otherwise specified.


(e) The word "including" (and with correlative meaning "include") means
--------- ------- including without limiting the generality of any description preceding such term.


Section 1.03 Calculations and Payments. Unless otherwise specified herein,
------------------------- expressions of a time of day refer to such time in New York, New York. Except as otherwise specified in this Agreement or in a Supplement, amounts payable hereunder shall be paid in immediately available funds. Whenever any reference is made to an amount or time the determination or calculation of which is governed by this Section 1.03, the provisions of this Section 1.03 shall be
------------ ------------ applicable to such determination or calculation, whether or not reference is specifically made to this Section 1.03, unless some other method of
------------ determination or calculation is expressly specified in the particular provision.


ARTICLE II


CONVEYANCE OR RECEIVABLES; ISSUANCE OF CERTIFICATES


Section 2.01 Conveyance of Receivables. By execution of this Agreement the
------------------------- Transferor does hereby assign, transfer and otherwise convey to the Trust from time to time, without recourse (except as specifically provided herein), and without any other formal or other written instrument of assignment, all of the Transferor's right, title and interest in, to and under (i) all Receivables existing on the date of execution hereof and all Receivables thereafter generated (but excluding Reconveyed Receivables), (ii) all Related Property, (iii) all monies due or to become due with respect thereto and (iv) all Collections and other proceeds (as defined in the UCC) of any of the foregoing. Such property, together with (x) all monies relating to the Receivables on deposit in the Collection Account and any other Series Accounts and (y) the benefits of any Enhancements shall constitute the assets of the Trust (the "Trust Assets"). Notwithstanding anything to the contrary in this Agreement, the ------------ Trust Assets shall not include proceeds (as defined in the UCC) of returned inventory. The foregoing transfer, assignment and conveyance does not constitute and is not intended to result in the creation, or an assumption by the Trust, the Trustee, any Enhancement Provider or any Investor Certificateholder, of any obligation of CompuCom, the Transferor or any other Person in connection with the Receivables or under any


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Payment Date, of the Monthly Interest Amount for the Series 1999-1
Certificates payable on such Payment Date with respect to the related
Accrual Period.


(b) The Trustee (acting at the written direction of the Servicer, pursuant to a Settlement Statement or otherwise) shall pay to the Agent, for the account of the Initial Series 1999-1 Certificateholder a commitment fee (the "Commitment Fee") with respect to each Accrual Period, on each Payment Date in -------------- an amount equal to the product of (A) the Commitment Fee Percentage, times (B) the daily average Liquidity Commitment Amount during the Accrual Period, times (C) a fraction the numerator of which is the number of days in the related Accrual Period and the denominator of which is three hundred sixty. The "Commitment Fee" with respect to any other Series 1999-1 Certificateholder shall -------------- mean the amount described in a fee letter among such Series 1999-1 Certificateholder, the Transferor and the Agent. To the extent that on any Payment Date funds distributed to the Agent pursuant to Section 4.07(b)(iii) of
-------------------- the Agreement as set forth in this Supplement are insufficient to pay the Commitment Fee due on such date, the Trustee shall pay the Agent the amount of any such deficiency out of funds otherwise distributable to the Transferor pursuant to Section 4.03(a)(ii) of the Agreement until such Commitment Fee is
------------------- paid in full.


(c) The Trustee (acting at the written direction of the Servicer, pursuant to a Settlement Statement or otherwise) shall pay to the Agent ...