Document:

sky-ex1015_577.htm

 

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

 

This Separation Agreement and General Release (the "Agreement") is made and entered between Skyline Champion Corporation, a Indiana corporation, with its principal place of business at 2520 Bypass Road, Elkhart, IN 46514, and its parents, subsidiaries, affiliates, divisions and related entities (collectively "Employer") and Jon S. Pilarski (“Employee”).

 

WHEREAS, Employee has been employed by Employer and/or its affiliated entities or subsidiaries and Employee has been notified that such employment was terminated effective May 

31, 2019 (“Separation Date”) for all purposes and benefits whatsoever, except as otherwise specifically set forth in this Agreement, and

 

WHEREFORE, the Parties hereby agree as follows:

 

1.Monetary Payment.  Upon Employee’s execution and delivery to Employer of this Agreement and the expiration of the revocation period without revocation of this Agreement by Employee, Employer will make payments, as listed in the attached Exhibit A (which Exhibit A is incorporated by reference in full in this Paragraph 1) to Employee (“Severance Amount”). Employee agrees that the consideration set forth in attached Exhibit A is consideration to which Employee is not otherwise entitled under any contract, policy, procedure, custom or usage of Employer. This payment(s), less applicable tax withholdings, shall be tendered to Employee pursuant to the schedule set forth in Exhibit A assuming Employee signs this Agreement and this Agreement remains unrevoked at the completion of a seven (7) day revocation period (“Effective Date”).  

 

2.General Release.  In consideration of the payment provided for by this Agreement, Employee, on behalf of Employee and Employee’s agents, heirs, successors and assigns, hereby finally and unconditionally releases and forever discharges Employer, and any and all of its parents, subsidiaries, affiliates and other related companies, as well as any and all of their past and present officers, directors, agents, employees, partners, shareholders, predecessors, successors and assigns, separately and collectively (“Released Parties”), and each of them, from any and all claims, including any common law claims, debts, liabilities, demands, damages, wages, charges, promises, acts, agreements, costs and expenses (including any claim for attorneys’ fees), actions and causes of action, or any claim for violation of civil rights, or of any violation of state, local, or federal law, (or constitution), including, but not limited to claims based on race, sex, national origin, ancestry, religion, age (including under the federal Age Discrimination in Employment Act), disability, medical condition, marital status, or sexual orientation under Title VII of the Civil Rights Act, the Americans with Disabilities Act or denial of leave under the Family & Medical Leave Act, or any other disability leave laws, or claims under laws such as the Employee Retirement Income Security Act of 1978 (“ERISA”) whether known or unknown, suspected or unsuspected, fixed or contingent, apparent or concealed (collectively referred to as “Claims”), including, but not limited to, any claims which arise out of or are in any way connected with Employee’s employment with Employer, or Employee’s relationship with Employer, or the termination of said relationship, or any claims which may be asserted on Employee’s behalf by any state or federal government agency including the Americans with Disabilities Act; the 

 

 

 

Immigration Reform and Control Act; the Occupational Safety and Health Act, as amended; or the Equal Pay Act.  This release does not pertain to any claim or right which is not otherwise waivable pursuant to statute or law.

 

Employee enters into this Agreement on behalf of Employee and his/her spouse, heirs, successors, assigns, executors and representatives of every kind, if any.  Employee understands that this Agreement contains a final release and that Employee may make no further claim for any personal or monetary relief for himself/herself against the Released Parties. 

 

Nothing in this Agreement, including the non-disparagement or confidentiality provisions, is intended to discourage or restrict Employee from challenging the validity of the Agreement under the Older Workers Benefit Protection Act of 1990 (OWBPA), or filing a charge, cooperating with an investigation by, or providing information to, the EEOC, the NLRB, or any state or local civil rights or employment practices agency. However, this Agreement prohibits Employee from obtaining any personal or monetary relief based on such a charge or any other method. Additionally, other than for claims challenging the validity of the Agreement under the ADEA or OWBPA, Employee covenants not to sue and understands and agrees that if Employee files suit or if Employee becomes a class member in a lawsuit, Employee must first tender the separation benefits back to Company.

 

Nothing in this Agreement prohibits Employee from cooperating with any government agency. Employee also agrees that:

 

	
 
	
(a)
	
Employee has been properly paid for all hours worked;
	
 

 

	
 
	
(b)
	
Employee has not suffered any on the job injury for which Employee has not already filed a claim; and
	
 

 

	
 
	
(c)
	
Employee has been properly provided any leaves of absence because of Employee’s health condition or a family member’s health condition.
	
 

 

3.Waiver of Claims.  Employee irrevocably and unconditionally releases, forever discharges, indemnifies and holds harmless Employer and any parents, subsidiaries, divisions, related entities or affiliates, employees or agents from all claims Employee believes or, at a later date, may believe Employee has against Employer, or any of its subsidiaries, divisions, related entities or affiliates, officers, employees or agents for any action as of the date of this Agreement.

 

4.Waiver of Age Discrimination Claim.  Employee understands and acknowledges that the Age Discrimination in Employment Act of 1967 (“ADEA”), as amended, provides employees with the right to bring a claim against Employer for discrimination on the basis of age.  Employee understands the rights afforded under the ADEA and agrees that Employee releases and waives all claims under the ADEA, including, but not limited to, back pay, attorneys’ fees, damages, reinstatement and/or injunctive relief.  Employee understands that Employee is not hereby waiving any rights or claims that may arise after the date this Agreement is executed.

 

 

 

5.Review Period.  Employee is advised to consult with an attorney before executing this Agreement.  Employee acknowledges that the benefits provided in this Agreement are greater than those to which Employee is entitled by any contract, employment policy, or otherwise.  Employee has entered into this Agreement knowingly and voluntarily without coercion.  Employee has been given up to 45 days to consider this Agreement.  This Agreement will not become enforceable or effective until the Effective Date.

 

6.Receipt of Informational Disclosure.  An informational disclosure is attached to this Agreement as Exhibit B.  Employee acknowledges receipt of this list, which includes:

 

(a)the group of individuals covered by the termination program;

 

(b)the eligibility factors for the program;

 

(c)the time limits to sign the Agreement;

 

(d)the job titles and ages of the individuals affected by the program; and

 

	
 
	
(e)
	
the job titles and ages of the individuals in the same job classification or organizational unit who are not affected by the program.

 

Employee enters into this Agreement on behalf of Employee and his/her spouse, heirs, successors, assigns, executors and representatives of every kind, if any.  Employee understands that this Agreement contains a final release and that Employee may make no further claim for any personal or monetary relief for himself/herself against the Released Parties. 

 

7.COBRA.  Employee hereby acknowledges Employee’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) and agrees to notify WageWorks within sixty (60) days of the Employee’s separation if Employee elects to continue coverage under the Company-sponsored health plan through self-payment.  Employee acknowledges that failure to file said election with WageWorks or failure to make payment when due will result in the termination of health benefits under the Company-sponsored Plan in accordance with applicable law.

 

8.Indemnification.  Employee will indemnify and hold harmless the parties herein released from any loss, claim, expense, demand or cause of action of any kind or character incurred directly or indirectly by reason of the falsity or inaccuracy of any representation herein by Employee.

 

9.Cooperation. Employee agrees that, for no additional consideration, he/she will cooperate with Employer in the transition of the services provided.  In that regard, Employee agrees to communicate with Employer, its agents and attorneys, at reasonable times and places, and respond to inquiries relating to the subject matter of the services that he/she provided to Employer. Employee also agrees to cooperate with respect to the defense of any lawsuit that relates to his/her performance of his duties while employed at Employer. Such cooperation includes 

 

 

meeting with Employer's attorneys at reasonable dates and times and providing requested information. 

10.Proprietary and Trade Secret Information.  Employee acknowledges and agrees that during and only by virtue of Employee’s employment with Employer, Employee has had access to and became acquainted with certain proprietary and trade secret information of Employer.  Such proprietary and trade secret information includes but is not necessarily limited to: (a) confidential information regarding Employer’s operations and, businesses; (b) confidential information regarding the identities, abilities, talents and business relationships and contacts of its personnel and other parties with whom it contracts; (c) confidential information regarding the Employer’s customers, including, but not limited to, customer identities and preferences; (d) confidential information regarding the Employer’s finances, marketing plans and strategies; (e) confidential information regarding the Employer’s litigation strategies; and (f) confidential information regarding the Employer’s pricing and billing strategies, policies and practices.  Employee promises and agrees not to disclose any such proprietary or trade secret information, directly or indirectly., or to otherwise use such information in any way, including, but not limited to, soliciting the customers or employees of the Employer, except as may be authorized in writing signed by an officer of Employer, or for as long as such information remains a trade secret, whichever period is shorter. However, nothing in this Agreement is intended to discourage Employee from reporting any theft of trade secrets to the appropriate government official pursuant to the Defend Trade Secrets Act of 2016 (“DTSA”) or other applicable state or federal law.  Additionally, under the DTSA, a trade secret may be disclosed to report a suspected violation of law and/or in an anti-retaliation lawsuit, as follows: (1) An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that: (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (2)  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order. Nothing in this Agreement shall limit, curtail or diminish the Company’s statutory rights under the DTSA, any applicable state law regarding trade secrets or common law.

 

11.Company Property; Expenses:  On Employee’s termination date, Employee will return to the Company all documents and other property belonging to the Company, including items such as keys, building access cards, credit cards, pagers, computers and phones which have not already been returned by Employee and receipt acknowledged by the Company.  Employee agrees not to make or retain any copies, electronic or otherwise, of the Company’s confidential information, as defined below.  

 

12.Non-Disparagement.  Employee agrees that he/she will not defame Employer or any Released Party or make any disparaging remarks or negative comments or statements about Employer or the Released Parties to any client, vendor, or competitor of Employer, or to any other person or entity.  This provision is not intended to interfere with Employee’s ability to provide truthful information to a governmental agency.

 

 

 

13.Integrated Agreement.  This Agreement reflects the full understanding and agreement of the Parties, and supersedes, replaces and renders void and unenforceable, all prior or contemporaneous agreements associated with or in any manner related to the subject matter of this Agreement.  No modifications to this Agreement are effective unless in writing, signed by Employer and Employee.

 

14.Right to Revoke.  Employee has the right to revoke this Agreement for any reason within seven (7) days after Employee signs it. To be effective, Employee’s notice of revocation must be in writing and must be hand-delivered or mailed to Roger K. Scholten, General Counsel, Skyline Champion Corporation, 755 West Big Beaver Road, Suite 1000, Troy, MI 48084.  If mailed, the revocation must be postmarked within the seven (7) day period, properly addressed and sent by certified mail, return receipt requested.  If hand-delivered, it must be given to Roger K. Scholten at Skyline Champion Corporation within the seven (7) day period.  This Agreement shall not become effective until the seven (7) day revocation period has expired.

 

15.Confidentiality.  This Agreement and its terms shall be kept confidential and private between the Parties to the Agreement.  Employee agrees not to disclose or cause the disclosure of the monetary or other terms of this Agreement, other than as required by law or as necessary for the preparation of tax returns and other tax-related matters.  Employee acknowledges that it would be extremely difficult or impractical at this time to ascertain the damages that would occur as a result of a breach of the confidentiality provision of this Agreement. If Employee breaches the confidentiality provisions of this Agreement, the sum of (amount equal to 25% of the payment) shall be paid to Employer as liquidated damages.

 

16.Governing Law.  Michigan law, including Michigan law regarding choice of law and conflicts of law, shall govern this Agreement.

 

17.Severability.  The invalidity or unenforceability of any provision of this Agreement shall in no way affect the validity or enforceability of any other provision of this Agreement.

 

 

IN WITNESS WHEREOF, the Parties to this Agreement acknowledge that they have fully read, understood, agreed to, and executed this Separation Agreement and Release on the dates written below.  No modifications of this Agreement are effective unless in writing, signed by Employer and Employee.

 

 

 

IN WITNESS WHEREOF, Employer and Employee have executed this Agreement as of the date and year first above written.

 

EMPLOYEE

 

 

/s/Jon S. Pilarski

Jon S. Pilarski

 

Date: May 6, 2019

 

 

SKYLINE CHAMPION CORPORATION

 

 

By:/s/ Roger K Scholten

 

 

Date: May 6, 2019

 

 

                                                   

 

Exhibit A

 

Payments to Jon S. Pilarski

 

 

	
 
	
A.
	
Fifty-two weeks of salary continuation based on annual base salary of $229,500. will be paid on the regular payroll cycle after May 31, 2019 through May 30, 2020, (“Salary Continuation Ending Date”), equivalent to $8,826.93 bi-weekly, less applicable withholdings.

 

	
 
	
B.
	
Employee may continue current Employer-provided medical, dental and vision coverages at the existing cost-sharing arrangement until no later than May 31, 2019.  The eighteen (18) month COBRA period will commence on June 1, 2019.  If Employee elects to continue benefit coverage beyond May 31, 2019, Employee will be solely responsible for the full COBRA cost beginning no later than June 1, 2019.

 

 

 

 

I, Jon S. Pilarski, understand that Paragraph 5 of the attached Separation Agreement and Release (“Agreement”) specifically provides me with up to forty-five (45) days within which to consider the Agreement.  By signing this Voluntary Waiver, I knowingly and voluntarily choose to waive the remainder of the forty-five (45) day time period and accept a shortening of the forty-five (45) day time period to the date of my signing of this Voluntary Waiver and the Agreement, without any inducement by Employer, whether through fraud, misrepresentation, oral or written statements or promises, threats to withdraw or alter the consideration offered in the Agreement prior to the expiration of the forty-five (45) day time period, or any other act.  

 

I further understand and agree that all other provisions of the Agreement continue to apply to me and specifically acknowledge and understand that the seven (7) day revocation period set forth in Paragraph 14 of the Agreement has not been shortened or waived and will commence as of the date of my signing of this Voluntary Waiver and the Agreement.  

 

 

 

 

/s/ Jon S. PilarskiJon S. Pilarski

 

 

Dated:  May 6, 2019Exhibit 4.2

       

      DESCRIPTION OF EPLUS INC.’S CAPITAL STOCK

       

      The following description of the capital stock ePlus

          inc. (the “Company” or “ePlus”) and provisions of its Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws are only summaries. 
          These summaries do not purport to be complete and are subject to and qualified by reference to the Company’s Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws and by the provisions of applicable Delaware law.

       

      General

       

      The Company has an authorized capitalization of 27,000,000 shares of capital stock, consisting of 25,000,000 shares of common stock, par
          value $0.01 per share, and 2,000,000 shares of undesignated preferred stock, par value $0.01 per share.

       

      Common Stock

       

      Subject to the prior or special rights of holders of shares of preferred stock:

       

      Dividends.  The holders of shares of common
          stock are entitled to any dividends that may be declared by our board of directors out of legally available funds;

       

      Liquidation, Dissolution or Winding Up.  In the
          event of a liquidation, dissolution or winding up of the Company, the holders of shares of common stock are entitled upon liquidation to share ratably in all assets remaining after payment of liabilities and the satisfaction of the liquidation
          preferences of any outstanding shares of preferred stock;

       

      Redemption.  The holders of shares of common
          stock are not subject to, or entitled to the benefits of, any redemption or sinking fund provision;

       

      Conversion.  No holder of common stock has the
          right to convert or exchange any such shares with or into any other shares of capital stock of the Company;

       

      Preemptive Rights.  No holder of common stock
          has preemptive rights; and

       

      Voting.  Each share of common stock entitles
          the holder thereof to one vote, in person or by proxy, on all matters submitted to a vote of stockholders generally.  Voting is non-cumulative.  Except as specifically provided in the Delaware General Corporation Law (the “DGCL”) or in the
          Company’s Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws, the affirmative vote required for stockholder action shall be that of a majority of the shares present in person or represented by proxy at the meeting
          (as counted for purposes of determining the existence of a quorum at the meeting).  Directors are elected by a plurality of the votes cast in the election. However, the Company’s Corporate Governance Guidelines provide that, in an uncontested
          election (that is, an election where the number of director nominees does not exceed the number of directors to be elected), if any nominee for director does not receive a majority of the votes cast, he or she is expected to tender his or her
          resignation in writing to the Chairman of the Nominating and Corporate Governance Committee.  The Nominating and Corporate Governance Committee shall evaluate the resignation tendered and shall make a recommendation to the Board whether to accept
          or reject the resignation, or whether other actions should be taken.  The board of directors shall act on each such resignation, taking into account the recommendation of the Nominating and Corporate Governance Committee, within 90 days following
          the certification of the election results.  If a director’s resignation is not accepted by the board of directors, then the director who tendered that resignation will continue to serve on the board of directors until the next annual meeting of
          shareholders and until his or her successor is elected and qualified, or until his or her earlier death, unconditional resignation, or removal.  In the event of a contested election, director nominees who receive the most votes for the number of
          seats up for election will be elected.

       

      
        
          

      

      Preferred Stock

       

      The preferred stock may be issued from time to time by the board of directors as shares of one or more classes or series.  Subject to the
          provisions of the Amended and Restated Certificate of Incorporation and limitations prescribed by law, the board of directors is expressly authorized to adopt resolutions to issue the shares, to fix the number of shares, to change the number of
          shares constituting any series and to provide for or change the voting powers, designations, preferences and relative, participating, optional or other special rights, qualifications, limitations or restrictions thereof, including dividend rights
          (including whether dividends are cumulative), dividend rates, terms of redemption (including sinking fund provisions), redemption prices, conversion rights and liquidation preferences of the shares constituting any class or series of the
          preferred stock, in each case without any action or vote by the holders of common stock.

       

      The issuance of shares of preferred stock, or the issuance of rights to purchase shares of preferred stock, could be used to discourage
          an unsolicited acquisition proposal.  For instance, the issuance of a series of preferred stock might impede a business combination by including class voting rights that would enable the holders to block such a transaction; or the issuance might
          facilitate a business combination by including voting rights that would provide a required percentage vote of the stockholders.  In addition, under some circumstances, the issuance of preferred stock could adversely affect the voting power of the
          holders of the common stock.  Although the board of directors is required to make any determination to issue preferred stock based on its judgment as to the best interests of the stockholders, the board of directors could act in a manner that
          would discourage an acquisition attempt or other transaction that some or a majority of the stockholders might believe to be in their best interests or in which stockholders might receive a premium for their stock over the then market price of
          the stock.

       

      The rights of the holders of each series of the preferred stock will be subordinate to the rights of general creditors.

       

      Certain Anti-Takeover Effects of Certain Provisions of the Company’s Amended and Restated Certificate of Incorporation, Amended and
          Restated Bylaws and the Delaware General Corporation Law

       

      The provisions of Delaware law and the Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws may have the
          effect of delaying, deferring or discouraging another party from acquiring control of the Company in a coercive manner as described below.  These provisions, summarized below, are expected to discourage and prevent coercive takeover practices and
          inadequate takeover bids.  These provisions are designed to encourage persons seeking to acquire control of the Company to first negotiate with the board of directors.  They are also intended to provide management with the flexibility to enhance
          the likelihood of continuity and stability if the board of directors determines that a takeover is not in the Company’s best interests or the best interests of the stockholders.  These provisions, however, could have the effect of discouraging
          attempts to acquire the Company, which could deprive stockholders of opportunities to sell their shares of common stock at prices higher than prevailing market prices.  The Company believes that the benefits of these provisions, including
          increased protection of the Company’s potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure the Company, outweigh the disadvantages of discouraging takeover proposals, because
          negotiation of takeover proposals could result in an improvement of their terms.

       

      Section 203 of the Delaware General Corporation Law may discourage, delay or prevent a change in control of the Company.  The Company is
          a Delaware corporation subject to Section 203 of the Delaware General Corporation Law.  Under Section 203, certain “business combinations” between a Delaware corporation and an “interested stockholder” are prohibited for a three-year period
          following the date that such stockholder became an interested stockholder, unless:

       

      
        
          	

                	•	
                  the business combination or the transaction which resulted in the stockholder becoming an interested stockholder was approved by the board of directors of the corporation
                      before such stockholder became an interested stockholder;

                

        

      

       

      
        
          	

                	•	
                  upon consummation of the transaction that resulted in such stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting
                      stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares
                      owned (a) by directors who are also officers and (b) by employee stock plans in which the employees do not have a confidential right to tender stock held by the plan in a tender or exchange offer; or

                

        

      

       

      
        
          

      

      
        
          	

                	•	
                  after such stockholder becomes an interested stockholder, the business combination is approved by the board of directors of the corporation and authorized at a meeting,
                      and not by written consent, by two-thirds of the outstanding voting stock which is not owned by the interested stockholder.

                

        

      

       

      The three-year prohibition also does not apply to some business combinations proposed by an interested stockholder following the
          announcement or notification of an extraordinary transaction involving the corporation and a person who had not been an interested stockholder during the previous three years or who became an interested stockholder with the approval of a majority
          of the corporation’s directors.

       

      Under the Delaware General Corporation Law, the term “business combination” is defined generally to include mergers or consolidations
          between the corporation or its majority-owned subsidiary and an interested stockholder, transactions with an interested stockholder involving the assets of the corporation or its majority-owned subsidiaries, and transactions that increase an
          interested stockholder’s percentage ownership of stock.  The term “interested stockholder” is defined generally as those stockholders who become beneficial owners of 15% or more of the corporation’s voting stock, together with the affiliates or
          associates of that stockholder.

       

      TheAmended and Restated Certificate of Incorporation and Amended and Restated Bylaws provide for

       

      
        
          	

                	•	
                  Election of Directors and Vacancies.  The Amended and Restated Certificate of
                      Incorporation and our Amended and Restated Bylaws contain provisions that establish specific procedures for appointing and removing members of the board of directors.  Vacancies and newly created directorships on our board of
                      directors may be filled only by a majority of the directors then serving on the board.

                

        

      

       

      
        
          	

                	•	
                  Requirements for Advance Notification of Stockholder Nominations and Proposals. 
                      The Amended and Restated Bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors.

                

        

      

       

      
        
          	

                	•	
                  Undesignated Preferred Stock.  The ability to authorize undesignated preferred
                      stock will make it possible for our board of directors to issue preferred stock with super voting, special approval, dividend or other rights or preferences on a discriminatory basis that could impede the success of any attempt to
                      acquire us.

                

        

      

       

      
        
          	

                	•	
                  No Cumulative Voting.  The Amended and Restated Certificate of Incorporation and
                      Amended and Restated Bylaws do not provide for cumulative voting in the election of directors.  Cumulative voting allows a minority stockholder to vote a portion or all of its shares for one or more candidates for seats on the board
                      of directors.  Without cumulative voting, a minority stockholder will not be able to gain as many seats on the board of directors based on the number of shares of stock the stockholder holds as the stockholder would be able to gain if
                      cumulative voting were permitted.  The absence of cumulative voting makes it more difficult for a minority stockholder to gain a seat on the board of directors to influence the board of director’s decision regarding a takeover.

                

        

      

       

      The provisions described above are intended to promote continuity and stability in the composition of the board of directors and in the
          policies formulated by the board, and to discourage some types of transactions that may involve an actual or threatened change of control.  The Company expects these provisions would reduce vulnerability to unsolicited acquisition attempts as
          well as discourage some tactics that may be used in proxy fights.  Such provisions, however, could discourage others from making tender offers for the Company’s shares and, as a consequence, may also inhibit increases in the market price of the
          Company’s common stock that could result from actual or rumored takeover attempts.  These provisions could also operate to prevent changes in management.

       

      
        
          

      

      Indemnification of Directors and Officers

       

      Delaware General Corporation Law.  Consistent
          with Section 145(a) of the DGCL, ePlus may indemnify and, in certain cases, must indemnify, any person who was or is made a party to any action by reason
          of the fact that he or she is or was a director, officer, employee or agent of the Company, or is or was serving at the request of ePlus as a director,
          officer, employee or agent of another corporation, (1) in the case of a non-derivative action, against judgments, fines, amounts paid in settlement, and reasonable expenses (including attorneys’ fees) incurred by him or her as a result of such
          action, and (2) in the case of a derivative action, against expenses (including attorneys’ fees), if in either type of action he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best
          interests of the Company.

       

      This indemnification does not apply, (1) in a derivative action, to matters as to which it is adjudged that the director, officer,
          employee or agent is liable to ePlus, unless upon court order it is determined that, in view of all the circumstances of the case and despite such
          adjudication of liability, he or she is fairly and reasonably entitled to indemnity for expenses, and (2) in a non-derivative action, to any criminal proceeding in which such person had reasonable cause to believe his or her conduct was unlawful.

       

      Amended and Restated Certificate of Incorporation.  The

          Amended and Restated Certificate of Incorporation provides that a director of ePlus shall not be personally liable to ePlus or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability (1) for any breach of the director’s duty of loyalty to ePlus or its stockholders, (2) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (3) under Section
          174 of the DGCL or (4) for any transaction from which the director derived an improper personal benefit.  Additionally, the Amended and Restated Certificate of Incorporation provides that ePlus will indemnify, in the manner and to the fullest extent permitted by the Delaware General Corporation Law (and in the case of any amendment thereto, to the extent that such amendment permits the Company
          to provide broader indemnification rights than permitted prior thereto), any person (or the estate of any person) who is or was a party to, or is threatened to be made a party to, any threatened, pending or completed action, suit or proceeding,
          whether or not by or in the right of the Company, and whether civil, criminal, administrative, investigative or otherwise, by reason of the fact that such person is or was a director or officer of the Company, or is or was serving at the request
          of the Company as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to an employee benefit plan.  The Company may, to the fullest extent permitted by the Delaware
          General Corporation Law, purchase and maintain insurance on behalf of any such person against any liability which may be asserted against such person.  To the fullest extent permitted by the Delaware General Corporation Law, the indemnification
          provided herein may include expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement and any such expenses may be paid by the Company in advance of the final disposition of such action, suit or proceeding upon receipt
          of an undertaking by or on behalf of the person seeking indemnification to repay such amounts if it is ultimately determined that he or she is not entitled to be indemnified.

       

      Amended and Restated Bylaws.  The Amended and
          Restated Bylaws generally provide for indemnification, to the fullest extent authorized by the DGCL, of the Company’s officers and directors and persons serving at the request of ePlus in such capacities for other business organizations against all expenses (including attorneys’ fees, judgments, fines and amounts paid in settlement) actually and reasonably incurred by reason of his or her
          position with ePlus or such other business organizations.  In addition, the Amended and Restated Bylaws provide that ePlus may provide indemnification to employees and agents of ePlus.

       

      Insurance; Indemnification Agreements.  The
          Company maintains directors’ and officers’ liability insurance which provides for payment, on behalf of the directors and officers of the Company and its subsidiaries, of certain losses of such persons (other than matters uninsurable under law)
          arising from claims, including claims arising under the Securities Act of 1933, as amended (the “Securities Act”), for acts or omissions by such persons while acting as directors or officers of the Company and/or its subsidiaries, as the case may
          be.

       

      
        
          

      

      The Company has entered into indemnification agreements with its directors and certain of its officers.  Generally, such agreements
          provide that the Company will indemnify the director or officer against any expenses or liabilities incurred in connection with any proceeding in which the director or officer may be involved as a party or otherwise, by reason of the fact that
          the director or officer is or was a director or officer of the Company or by any reason of any action taken by or omitted to be taken by the director or officer while acting as an officer or director of the Company provided that the director or
          officer was acting in good faith and in a manner the director or officer reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action, the director or officer had no reasonable cause
          to believe the director’s or officer’s conduct was unlawful.  However, the Company is not obligated to provide indemnification under the indemnification agreements if: (i) the claim is covered by applicable insurance; (ii) the claim was made to
          recover profits by the director or officer in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any successor statute, (iii) for any reimbursement of compensation pursuant to any statutory and/or policy regarding
          clawbacks; or (iv) the claim was initiated by the director or officer.  Each director and officer has undertaken to repay the Company for any costs or expenses paid by the Company if it is ultimately determined that the director or officer is not
          entitled to indemnification under the indemnification agreements.

       

      Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons
          controlling the Company pursuant to the foregoing provisions, the Company has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is
          therefore unenforceable.

       

      Transfer Agent and Registrar

       

      The transfer agent and registrar for the common stock is Computershare Inc.

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