Document:

Exhibit 10.1

 

FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 

This FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER (“Amendment”), is made effective as of October 31, 2016 (the “Fourth Amendment Date”), by and between DATALINK CORPORATION, a Minnesota corporation, having its chief executive office located at 10050 Crosstown Circle, Suite 500, Eden Prairie, Minnesota 55344 (“Borrower”), and CASTLE PINES CAPITAL LLC, a Delaware limited liability company, having its chief executive office located at 116 Inverness Drive East, Suite 375, Englewood, Colorado 80112 (“CPC”). Capitalized terms not defined herein have the meanings given to them in the Credit Agreement (as defined herein).

 

W I T N E S S E T H :

 

WHEREAS, CPC and Borrower are parties to that certain Credit Agreement dated as of July 17, 2013, as amended (the “Existing Credit Agreement”, together with the amendment referred to herein, and as may further be amended, modified or amended and restated from time to time, “Credit Agreement”); and

 

WHEREAS,  Borrower has requested a waiver of its failure to meet the requirements of the Minimum Quarterly Free Cash Flow covenant for the trailing twelve month period ending September 30, 2016; and

 

WHEREAS, Borrower and CPC desire to modify the Minimum Quarterly Free Cash Flow covenant;

 

NOW, THEREFORE, in consideration of the premises, the parties hereto hereby agree as follows:

 

SECTION ONE — Amendment.

 

Section 4.9 of the Existing Credit Agreement is hereby amended by deleting paragraph “(c), Minimum Quarterly Free Cash Flow”, and replacing it with a new paragraph (c) Minimum Quarterly Free Cash Flow covenant, as follows:

 

“(c)         Minimum Quarterly Free Cash Flow.  At any time and from time to time that Borrower’s ‘cash’ as reported on Borrower’s fiscal quarterly balance sheet is less than $25,000,000, Borrower shall have Free Cash Flow of at least $1.00 at the end of such fiscal quarter for the trailing twelve month period then ended, and shall continue to have Free Cash Flow of at least $1.00 at the end of Borrower’s trailing twelve month period ending each fiscal quarter thereafter, until such time as Borrower’s ‘cash’ as reported on Borrower’s fiscal quarterly balance sheet is greater than $25,000,000.

 

Free Cash Flow means, with respect to the trailing twelve months ending as of any period of measurement, an amount equal to:

 

Recurring Operating EBITDA

 

minus

 

(a) the sum of:

 

(i) unfinanced capital expenditures, plus

(ii) income taxes paid in cash by Borrower, plus

(iii) Distributions paid in cash during such period,

 

 

minus

 

(b) the sum of:

 

(i) interest expense paid in cash, plus

(ii) current maturities of long term debt, during such period.

 

Distribution means (a) any distribution, dividend or payment to any person on account of any equity interest of Borrower, (b) loans by Borrower to any holder of equity interests of Borrower, (c) any payment of management, consulting or similar fees payable by Borrower or any subsidiary of Borrower to any affiliate of Borrower, or (d) any redemption, purchase, retirement, defeasance, sinking fund or similar payment or any claim of rescission with respect to any equity interest of Borrower.

 

Net Income means, with respect to the trailing twelve months ending as of any period of measurement, net earnings (or net loss) after taxes of the Borrower during such period determined in accordance with GAAP.

 

Recurring Operating EBITDA means, with respect to the trailing twelve months ending as of any period of measurement, an amount equal to: Net Income, plus (a) the such of the following to the extent deducted in calculating such Net Income, the sum of: (i) interest expenses for such period, plus, (ii) the provision for federal, state, local and foreign income taxes payable by the Borrower for such period, plus (iii) depreciation and amortization expense for such period and plus (iv) other non-cash or non-recurring expenses of the Borrower reducing such Net Income (including without limitation non-cash stock-based compensation expense), and minus (b) all non-cash or non-recurring items increasing Net Income for such period.”

 

SECTION TWO — Waiver.  Subject to Section Three hereof, CPC hereby waives Borrower’s failure to its failure to meet the requirements of the Minimum Quarterly Free Cash Flow covenant for the trailing twelve month period ending September 30, 2016.

 

SECTION THREE - Conditions to Effectiveness.  This Amendment shall be effective as of the Fourth Amendment Date provided:

 

A.            CPC has received counterparts of this Amendment executed by the Borrower;

 

B.            No event shall have occurred since December 31, 2015, which has a material adverse effect on the business, assets, revenues, financial condition or Collateral of Borrower, the ability of Borrower to perform Borrower’s payment obligations when due or to perform any other material obligation under the Credit Agreement; or any right, remedy or benefit of CPC under the Credit Agreement; and

 

C.            CPC has received such other documents and information as requested by CPC and its counsel.

 

In addition, the effectiveness of this Amendment is conditioned upon the continuing accuracy of the representations and warranties set forth in Section Four hereof.

 

SECTION FOUR — Representations and Warranties. In order to induce CPC to enter into this Amendment, Borrower represents and warrants to CPC that upon the effectiveness of this Amendment (i) the Credit Agreement, as amended, does remain the legal, valid, enforceable and binding obligation of Borrower, (ii) no Default has occurred and is continuing, (iii) all of the representations and warranties in the Credit Agreement are true and complete in all material respects on and as of the date hereof as if made on the date hereof (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date), and (iv) Borrower have no claims, defenses, or offsets against CPC.

 

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SECTION FIVE - Miscellaneous. Borrower waives notice of CPC’s acceptance of this amendment. All other terms and provisions of the Credit Agreement, to the extent not inconsistent with the foregoing, are ratified and remain unchanged and in full force and effect.

 

SECTION SIX — Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION SEVEN — Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of Colorado (without giving effect to any provisions thereof relating to conflicts of law).

 

THIS AMENDMENT AND THE CREDIT AGREEMENT CONTAIN BINDING ARBITRATION, JURY WAIVER AND PUNITIVE DAMAGE WAIVER PROVISIONS.

 

(Signature Page(s) to Follow)

 

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IN WITNESS WHEREOF, each of the undersigned has caused this Amendment to be duly executed and delivered by its proper and duly authorized officer, effective as of the date first set above.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
DATALINK CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gregory T. Barnum
    
	
 
    	
Name: Gregory T. Barnum
    
	
 
    	
Title: Vice President,   Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
ACKNOWLEDGED AND AGREED   TO:
    	
 
    
	
 
    	
 
    
	
CASTLE PINES CAPITAL LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Lloyd Squire
    	
 
    
	
Name: Lloyd Squire
    	
 
    
	
Title: Regional Manager
    	
 
    
				

 

Signature page to Datalink. Fourth AmendmentExhibit

      
EPAM SYSTEMS, INC.
Amended Non-Employee Director Compensation Policy
(Adopted January 22, 2012; Amended December 16, 2013; February 24, 2015 (effective January 1, 2015); April 16, 2015; September 14, 2016)

Unless and until the Board resolves otherwise or as otherwise agreed between the Company and the Board, each member of the Board of Directors (the “Board”) of EPAM Systems, Inc. (the “Company”) that is not an employee of the Company or any of its subsidiaries (each, a “Non-Employee Director”) shall be entitled to receive the compensation set forth below during the term of his or her service on the Board. Capitalized terms used but not defined in this policy shall have the meanings set forth in the Company’s 2012 Non-Employee Directors Compensation Plan (as amended from time to time, the “Plan”).
Annual Cash Retainers
Frequency and Pro-Ration of Payments:  Each of the retainer payments described below shall be payable in cash in arrears in equal quarterly installments on March 31, June 30, September 30 and December 31 (or, if any such date is not a business day, the business day immediately preceding such date) (each such payment date, a “Quarterly Payment Date”) in respect of the calendar quarter that includes such Quarterly Payment Date, or, at the Non-Employee Director’s election given by written notice to the Company no later than March 15 of any calendar year, in one cash payment in arrears on December 31 (or if such date is not a business day, the business day immediately preceding such date) (such payment date, an “Annual Payment Date”) in respect of the calendar year that includes such Annual Payment Date.  Any Non-Employee Director who becomes eligible for any of the following retainer payments on a date that is not the first day of a calendar quarter (or year) shall receive a pro-rated Retainer for his or her service in the applicable role on the Board for such quarter (or year) based on the number of days of such service during such quarter (or year).
Service as Non-Employee Director:  Each Non-Employee Director shall receive an annual retainer (a “Retainer”) in the amount of $50,000 payable in cash in arrears.
Service as Lead Independent Director: The Non-Employee Director who serves as Lead Independent Director of the Board shall receive an additional annual retainer in the amount of $25,000 payable in cash in arrears.
Service as a Committee Member:  Each Non-Employee Director who serves as a member (but not as a Chairperson) of one or more of the Audit, Compensation or Nominating and Corporate Governance Committees (each, a “Committee”) of the Board shall receive an additional annual retainer in the amount of $10,000, $7,500 and/or $6,000 for his or her service on each such Committee, respectively, payable in cash in arrears.
Service as Chairperson of a Committee of the Board:  Any Non-Employee Director who serves as a Chairperson of one or more of the Committees shall receive an additional annual retainer in the amount of $20,000, $15,000 and/or $10,000 for his or her service as the Chairperson of one or more of the Audit, Compensation or Nominating and Corporate Governance Committees, respectively, payable in cash in arrears.

Additional Non-Employee Director Compensation
Any Non-Employee Director who attends more than ten (10) meetings of the Board, or more than ten (10) meetings of the same Committee on which such Non-Employee Director serves, in any calendar year shall receive an additional cash payment of $2,000 for each such additional meeting thereof that such Non-Employee Director attends in person and $1,000 for each such additional meeting that such Non-Employee Director attends telephonically. 
Election to Receive Stock
A Non-Employee Director may elect to receive all or a portion of his or her Retainer in shares of Common Stock by executing and submitting to the Company’s Corporate Secretary (the “Secretary”) an election form, pursuant to a form provided by the Company, which indicates the percentage of such Retainer that such director elects to receive in shares. A Non-Employee Director who wishes to revoke or amend a previously submitted election form may do so by executing and submitting to the Secretary a subsequent election form, pursuant to a form provided by the Company. An election form, whether initial or subsequent, shall be effective only with respect to Quarterly Payment Dates (or if applicable, the Annual Payment Date) that occur after the date on which the Secretary receives such form.  
As of each Quarterly Payment Date (or if so elected, the Annual Payment Date), a Non-Employee Director who has validly elected to receive all or a portion of his or her Retainer in shares of Common Stock will receive a number of shares of Common Stock determined by dividing the amount of the Retainer that otherwise would have been payable to such director in cash on such date by the closing price of a share of Common Stock on the day prior to such Quarterly Payment Date (or if so elected, the Annual Payment Date); provided that any fractional share shall be paid in cash.  

Equity Grants
Initial Restricted Stock Grants to Directors:  On the date that a Non-Employee Director commences service on the Board, such director shall receive under the Plan an initial grant (the “Initial Grant”) of Restricted Stock. The number of shares of Common Stock covered by the Initial Grant shall be determined by dividing $100,000 by the closing price of a share of Common Stock on the day prior to the grant date. The Initial Grant will vest 25% on each of the first four anniversaries of the grant date.  
Annual Restricted Stock Grants to Directors:  On the date of the Company’s annual public stockholder meeting, each Non-Employee Director who at such meeting is elected to serve on the Board or whose term is scheduled to continue at least through the date of the next such meeting shall receive under the Plan an annual grant (each, an “Annual Grant”) of Restricted Stock. The number of shares of Common Stock covered by an Annual Grant shall be determined by dividing $75,000 by the closing price of a share of Common Stock on the day prior to the grant date. Any Non-Employee Director who commences service on the Board on a date other than the date of the Company’s annual public stockholder meeting shall receive on such start date a pro-rated Annual Grant, with the number of shares of Common Stock covered by such grant determined by dividing (i) the product of $75,000 and a fraction, the numerator of which is 365 minus the number of days that have elapsed between the date of such meeting and such start date, and the denominator of which is 365, by (ii) the closing price of a share of Common Stock on the day prior to such start date. Each Annual Grant will vest 100% on the first anniversary of the grant date.

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