Document:

exh10-1.htm

    ELEVENTH
      AMENDMENT TO CREDIT AGREEMENT

    

    This
      ELEVENTH AMENDMENT TO CREDIT
      AGREEMENT (the “Eleventh Amendment”) dated February 29, 2008, is by and among
      ePlus inc., a Delaware corporation (“ePlus”), the Subsidiaries of ePlus
      signatory hereto (including ePlus, each individually a “Borrower” and
      collectively, the “Borrowers”), the Banks signatory hereto (the “Banks”), and
      National City Bank, as Administrative Agent for the Banks (the “Administrative
      Agent”).

    

    BACKGROUND

    

    A. Pursuant
      to that certain Credit Agreement dated September 23,
      2005, by and among the
      Borrowers, the Banks, and the Administrative Agent, as amended by a First
      Amendment to Credit Agreement, dated July 11, 2006, a Second Amendment dated
      July 28, 2006, a Third Amendment dated August 30, 2006, a Fourth Amendment
      dated
      September 27, 2006, a Fifth Amendment dated November 15, 2006, a Sixth Amendment
      dated January 11, 2007, a Seventh Amendment dated March 12, 2007, an Eighth
      Amendment dated June 27, 2007, a Ninth Amendment, dated August 22, 2007 and
      a
      Tenth Amendment, dated November 29, 2007 (as the same may be modified and
      amended from time to time, including by this Eleventh Amendment, the “Credit
      Agreement”), the Banks agreed, inter alia, to extend to the
      Borrowers a revolving credit facility in the maximum aggregate principal amount
      of $35,000,000.

    

    B. The
      Borrowers did not (or will not) deliver the following documents as required
      by
      Section 5.1 of the Credit Agreement their Financial Statements (Quarterly),
      for
      the periods ending June 30, 2007, September 30, 2007, December 31, 2007
      (collectively, the “Waived Delivery Events”), which deliveries, to the extent
      otherwise required, were waived through February 29, 2008, pursuant to the
      Tenth
      Amendment, and have advised the Banks that they will be unable to deliver such
      items in the timeframe set forth in the Tenth Amendment (or the Credit
      Agreement).

    

    C. The
      Borrowers have requested an extension of the delivery date requirements for
      the
      Waived Delivery Events, to which the Banks are willing to agree, on the terms
      and subject to the conditions set forth herein.

    

    NOW,
      THEREFORE, in consideration of the
      foregoing premises and for other good and valuable consideration, the receipt
      and sufficiency of which are hereby acknowledged, and intending to be legally
      bound hereby, the parties hereto agree as follows:

    

    1. Definitions.

    

    (a) General
      Rule.  Except as expressly set forth herein, all capitalized
      terms used and not defined herein shall have the respective meanings ascribed
      thereto in the Credit Agreement.

    

    (b) Additional
      Definition.  The following additional definition shall be added
      to Article 1 of the Credit Agreement to read in its entirety as
      follows:

    

    “Eleventh
      Amendment”
means the Eleventh Amendment to this Agreement dated February 29,
      2008.

    

    2. Representations
      and
      Warranties.  Each Borrower hereby represents and warrants to
      the Administrative Agent and each Bank that, except as to the Waived Delivery
      Event, as to such Borrower:

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    (a) Representations.  each
      of the representations and warranties of such Borrower contained in the Credit
      Agreement and/or the other Loan Documents are true, accurate and correct in
      all
      material respects on and as of the date hereof as if made on and as of the
      date
      hereof, except to the extent such representation or warranty was made as of
      a
      specific date;

    

    (b) Power
      and
      Authority.  (i) such Borrower has the power and authority under
      the laws of its jurisdiction of organization and under its organizational
      documents to enter into and perform this Eleventh Amendment and any other
      documents which the Banks require such Borrower to deliver hereunder (this
      Eleventh Amendment and any such additional documents delivered in connection
      with the Eleventh Amendment are herein referred to as the “Amendment
      Documents”); (ii) such Borrower is in good standing in its jurisdiction of
      organization and each additional jurisdiction in which it is required to be
      so
      qualified; and (iii) all actions, corporate or otherwise, necessary or
      appropriate for the due execution and full performance by the Borrower of the
      Eleventh Amendment have been adopted and taken and, upon their execution, the
      Credit Agreement, as amended by this Eleventh Amendment will constitute the
      valid and binding obligations of the Borrower enforceable in accordance with
      their respective terms;

    

    (c) No
      Violations of Law or
      Agreements.  the making and performance of the Eleventh
      Amendment will not violate any provisions of any law or regulation, federal,
      state, local, or foreign, or the organizational documents of such Borrower,
      or
      result in any breach or violation of, or constitute a default or require the
      obtaining of any consent under, any agreement or instrument by which such
      Borrower or its property may be bound;

    

    (d) No
      Default.  except as is waived hereby, no Default or Event of
      Default has occurred and is continuing; and

    

    (e) No
      Material Adverse
      Effect.  No Material Adverse Effect has occurred since
      September 23, 2005.

    

    3. Conditions
      to Effectiveness
      of Amendment.  This Eleventh Amendment shall be effective upon
      the Administrative Agent’s receipt of the following, each in form and substance
      reasonably satisfactory to the Banks:

    

    (a) Eleventh
      Amendment.  this Eleventh Amendment, duly executed by the
      Borrowers and the Banks;

    

    (b) Consent
      and
      Waivers.  copies of any consents or waivers necessary in order
      for the Borrowers to comply with or perform any of its covenants, agreements
      or
      obligations contained in any agreement, which are required as a result of the
      Borrowers’ execution of this Eleventh Amendment, if any;

    (c) Other
      Documents and
      Actions.  such additional agreements, instruments, documents,
      writings and actions as the Banks may reasonably request.

    

    4. Limited
      Consent;
      Ratification.   Subject to the terms and conditions of
      this Eleventh Amendment, the Banks and Administrative Agent hereby consent
      to an
      extension of the delivery date for each of the deliveries described in the
      definition of the Waived Delivery Event, to a date not later than June 30,
      2008.  Except as stated in the preceding sentence, the execution,
      delivery and performance of this Eleventh Amendment shall not operate as a
      waiver of any right, power or remedy of the Administrative Agent or the Banks
      under the Credit Agreement or any Loan Document, or constitute a waiver of
      any
      provision thereof.  Except as expressly modified hereby, all terms,
      conditions and provisions of the Credit Agreement and the other Loan Documents
      shall remain in full force and effect 

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

    and
      are
      hereby ratified and confirmed by any Borrower.  Nothing contained
      herein constitutes an agreement or obligation by the Administrative Agent or
      any
      Bank to grant any further amendments to any of the Loan Documents.

    

    5. Acknowledgments.  To
      induce the Banks to enter into this Eleventh Amendment, each Borrower
      acknowledges, agrees, warrants, and represents that:

    

    (a) Acknowledgment
      of
      Obligations; Collateral; Waiver of Claims. (i) the Loan Documents are
      valid and enforceable against, and all of the terms and conditions of the Loan
      Documents are binding on, the Borrowers; (ii) the liens and security interests
      granted to the Administrative Agent by the Borrowers pursuant to the Loan
      Documents are valid, legal and binding, properly recorded or filed and first
      priority perfected liens and security interests; and (iii) the Borrowers hereby
      waive any and all defenses, set-offs and counterclaims which they, whether
      jointly or severally, may have or claim to have against the Administrative
      Agent
      or any Bank as of the date hereof.

    

    (b) No
      Waiver of Existing
      Defaults.  Other than the Waived Delivery Event, no Default or
      Event of Default exists immediately before or immediately after giving effect
      to
      this Eleventh Amendment.  Nothing in this Eleventh Amendment nor any
      communication between the Administrative Agent, any Bank, any Borrower or any
      of
      their respective officers, agents, employees or representatives shall be deemed
      to constitute a waiver of (i) any Default or Event of Default arising as a
      result of the foregoing representation proving to be false or incorrect in
      any
      material respect; or (ii) any rights or remedies which the Administrative Agent
      or any Bank has against any Borrower under the Credit Agreement or any other
      Loan Document and/or applicable law, with respect to any such Default or Event
      of Default arising as a result of the foregoing representation proving to be
      false or incorrect in any material respect.

    

    6. Binding
      Effect.  This Eleventh Amendment shall be binding upon and
      inure to the benefit of the parties hereto and their respective successors
      and
      assigns.

    

    7. Governing
      Law.  This Eleventh Amendment and all rights and obligations of
      the parties hereunder shall be governed by and be construed and enforced in
      accordance with the laws of the Commonwealth of Pennsylvania without regard
      to
      Pennsylvania or federal principles of conflict of laws.

    

    8. Headings.  The
      headings of the sections of this Eleventh Amendment are inserted for convenience
      only and shall not be deemed to constitute a part of this Eleventh
      Amendment.

    

    9. Counterparts.  This
      Eleventh Amendment may be executed in any number of counterparts with the same
      affect as if all of the signatures on such counterparts appeared on one document
      and each counterpart shall be deemed an original.

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Borrowers have caused this Eleventh Amendment to Credit
      Agreement to be executed under seal by their duly authorized officers, all
      as of
      the day and year first written above.

     

    ePLUS
      inc.

     

    By: /s/
      Kleyton L.
      Parkhurst

    Name:
Kleyton
      L.
      Parkhurst

    Title:
Senior
      Vice President

     

    ePLUS
      Group,
      inc.

     

    By: /s/
      Kleyton L.
      Parkhurst

    Name:
Kleyton
      L.
      Parkhurst

    Title:
Senior
      Vice President

     

    ePLUS
      Government,
      inc.

     

    By: /s/
      Kleyton L.
      Parkhurst

    Name:
Kleyton
      L.
      Parkhurst

    Title:
Senior
      Vice President

     

    ePLUS
      Capital,
      inc.

     

    By: /s/
      Kleyton L.
      Parkhurst

    Name:
Kleyton
      L.
      Parkhurst

    Title:
President

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Administrative
      Agent and the Banks have caused this Eleventh Amendment to Credit Agreement
      to
      be executed under seal by their duly authorized officers, all as of the day
      and
      year first written above.

     

    NATIONAL
      CITY BANK

     

    By: /s/ Michael
      J.
      Labrum                                                                    

    Name:  Michael
      J.
      Labrum

    Title:  Senior
      Vice President

    

     

    BRANCH
      BANKING AND TRUST COMPANY

    (successor
      in interest by merger to Branch Banking And Trust Company of
      Virginia)

     

    By: /s/ James
      E.
      Davis                                                                          

    Name: 
James
      E.
      Davis

    Title: 
Senior
      Vice
      Presidentexh10-2.htm

    ePlus
      inc.

    FY
      2008 Executive Incentive Plan

    

    
      	
              1.  

            	
              Purpose

            

    

    

    The
      ePlus
      inc. Executive Incentive Plan (the “Plan”) is designed to provide additional
      incentive for Executive employees of ePlus inc. (the “Company”) and its
      subsidiaries by awarding performance-based cash incentive
      compensation.  Such awards will be designed to retain or attract, and
      to provide additional incentive to Executives having regard for their individual
      performance, business unit performance, contributions to the Company and other
      appropriate considerations.

    

    
      	
              2.  

            	
              Administration

            

    

    

    (a)
      The Plan shall be
      administered by the ePlus Compensation Committee which consists of select
      members of the Board of Directors of the Company, each of whom qualifies as
      a
“non-employee director” within the meaning of Rule 16b-3 (“Rule 16b-3”)
      promulgated by the Securities and Exchange Commission under the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”), and an “outside director”
within the meaning of Section 162(m) of the Internal Revenue Code of 1986,
      as
      amended (the “Code”) (directors meeting both such requirements being hereinafter
      referred to as “Qualified Directors”), which Compensation Committee shall be
      composed of not less than the minimum number of Qualified Directors from time
      to
      time required by Rule 16b-3 or Section 162(m).  The Compensation
      Committee shall have full authority to establish rules for the administration
      of
      the Plan and to make administrative decisions regarding the Plan or awards
      hereunder.  The Compensation Committee may delegate its functions
      hereunder to the extent consistent with applicable law.

    

    (b)  Determination
      binding.  Unless otherwise expressly provided in the Plan, all
      designations, determinations, interpretations, and other decisions under or
      with
      respect to the Plan, any award, or any award agreement or certificate shall
      be
      with and in the sole discretion of the Compensation Committee, may be made
      at
      any time, and shall be final, conclusive, and binding upon all person, including
      the Company, any subsidiary, any participant, any holder or beneficiary of
      any
      award, and any employee of the Company or any subsidiary.

    

    
      	
              3.  

            	
              Awards

            

    

    

    (a)
      Determination of
      Participation and Award Amounts.  The Compensation Committee will
      determine participants in the Plan and the terms and amounts of each
      participant’s minimum, target and maximum award opportunities
      hereunder.

    

    (b)
Award
      Type.  Incentives shall be awarded in the form of annual cash payments
      of specified percentages of base salary, which are paid based upon the
      achievement of pre-established annual corporate, unit and/or individual
      performance objectives.

     

    
      
        
        

      

      
        1

        
        

      

      
        
        

      

    

     

    (c)
Earning
      Awards.  Awards shall be paid hereunder to the extent the Company and
      the participant achieve Performance Goals as specified by the Compensation
      Committee consistent with Section 8(c).  Each participant’s award
      opportunity shall be computed based upon a percentage of such participant’s
      annual base salary and shall be denominated in cash in a proportion as
      determined by the Compensation Committee.  Each award agreement will
      identify the minimum, target and maximum levels of performance required for
      payment of the related award.

    

    (d)  Award
      Period.  The Compensation Committee shall fix the period during which
      performance is to be measured and the time at which the value of the Annual
      Incentive is to be paid.

    

    
      	
              4.  

            	
              Participants

            

    

    

    Nothing
      in the Plan shall prevent a participant from being included in any other
      employee benefit or stock option or purchase plan of the Company or from
      receiving any other compensation provided.  Neither the Plan nor any
      action taken thereunder  shall be understood as giving any person any
      right to be retained in the employ of the Company or any subsidiary, nor shall
      any person (including participants in a prior year) be entitled as of right
      to
      be selected as a participant in the Plan any subsequent year.

    

    
      	
              5.  

            	
              Amendment/Termination
                of the Plan

            

    

    

    The
      Compensation Committee may amend, suspend, or terminate the Plan in whole or
      in
      part at any time; provided, however, that if in the judgment of the Committee
      such amendment or other action would have a material effect on the Plan, such
      amendment or other action must be taken by the Board of Directors.

    

    
      	
              6.  

            	
              Termination
                of Employment; Transfer
                Restrictions

            

    

    

    (a)  In
      the event of
      a conflict between this Executive Incentive Plan and an individual’s Employment
      Agreement, the terms of the Employment Agreement shall prevail. Furthermore,
      the
      Employment Agreement shall control in any matter on which this Executive
      Incentive Plan is silent.

    

    (b)
If
      a participant’s
      employment with the Company terminates due to death, disability or retirement,
      the Compensation Committee may in its discretion make a payment to the
      participant or his beneficiary, as the case may be,  up to an amount
      equal to the value of the target award for the relevant performance period
      in
      which the termination occurs, multiplied by a fraction, the numerator of which
      is the number of months (including partial months) in the period beginning
      on
      the first day of the relevant performance period and ending with the date as
      of
      which the participant’s employment with the Company so terminated, and the
      denominator of which is the number of months in such performance
      period.

     

    
      
        
        

      

      
        2

        
        

      

      
        
        

      

    

     

    (c)
No
      award, and no right
      under any award shall be assignable, alienable, saleable, or transferable by
      a
      participant other than by will or by the laws of descent and
      distribution.  Each award, and each right under any award, shall be
      payable only to the participant, or, if permissible under applicable law, to
      the
      participant’s guardian or legal representative and any purported pledge,
      alienation, attachment, or encumbrance thereof shall be void and unenforceable
      against the Company.

    

    
      	
              7.  

            	
              Effectiveness

            

    

    

    The
      Plan
      shall become effective on the date it is approved by the current sitting
      Chairman of the Compensation Committee as indicated by his signature on this
      plan document (the “Effective Date”).

    

    
      	
              8.  

            	
              Criteria

            

    

    

    (a)
      Covered
      Employees.  The provisions of this Section 8 shall be applicable to
      awards under the Plan to “Covered Employees” if the Compensation Committee so
      provides at the time of grant (such awards being referred to as “Covered
      Awards”).  For purposes of this Section 8, “Covered Employees” means
      participants in the Plan who are designated by the Committee prior to the grant
      of an award hereunder who are, or are expected to be at the time taxable income
      will be realized with respect to the award, “Covered Employees” with the meaning
      of Section 162(m) of the Code.

    

    (b)
      Determinations.  Covered Awards shall be made subject to the
      achievement of one or more pre-established Performance Goals (as defined below),
      in accordance with procedures to be established by the Committee from time
      to
      time.  Notwithstanding any provision of the Plan to the contrary, the
      Compensation Committee shall not have discretion to waive or amend such
      Performance Goals or to increase the amount payable pursuant to Covered Awards
      after the Performance Goals have been established; provided, however, that
      the
      Compensation Committee may, in its sole discretion, reduce the amount that
      would
      otherwise be payable with respect to any Covered Award.

    

    (c)
Performance
      Goals.  “Performance Goals” under the Plan will be established by the
      Compensation Committee prior to the time the grant is made and is based upon
      the
      attainment of targets expressed in both the financial performance and the
      individual performance (MBO) components of the plan.

    

    (d)
      Written Certification;
      Maximum Annual Award.  No payment shall be made pursuant to a Covered
      Award unless and until the Compensation Committee shall have certified in
      writing that the applicable Performance Goals have been attained.  The
      maximum amount payable pursuant to a particular Covered Employee for any fiscal
      year shall be $500,000.

     

    
      
        
        

      

      
        3

        
        

      

      
        
        

      

    

     

    (e)
Deferrals.  The
      Compensation Committee may from time to time establish procedures pursuant
      to
      which Covered Employees will be permitted or required to defer receipt of awards
      under the Plan.

    

    (f)
Composition
      of the
      Compensation Committee.  Notwithstanding any other provision of the
      Plan, for all purposes involving Covered Awards, the Compensation Committee
      shall consist of at least three members of the Board, each of whom is an
“outside director” within the meaning of Section 162(m).

     

     

    Pursuant
      to Section 7, the foregoing ePlus inc. FY 2008 Executive Incentive
      Plan is hereby approved by the undersigned, as Chairman
      of the Compensation Committee of the ePlus inc. Board of Directors on, and
      is effective as of, the date hereof.

    
      
	Date:  March 6, 2008	By: /s/ Milton E. Cooper, Jr. 
	 	Chairman, Compensation Committee 
	 	Board of Directors 
	 	ePlus inc. 

        

        
 
 
                                                                  
                                                                   
                                                                  

      
    

    
      
        
        

      

      
        4

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