Document:

EX-10.9

 

Exhibit 10.9

July 25, 2007

Michael McAndrew

Black Box Corporation of Pennsylvania

Norstan, Inc.

1000 Park Drive

Lawrence, PA 15055

	 	 	 
	Re:

	 	SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of January 24, 2005, as
amended by First Amendment to the Second Amended and Restated Credit Agreement dated as
of February 17, 2005 and Second Amendment to the Second Amended and Restated Credit
Agreement dated as of March 28, 2006, as the same may be or have been further amended
from time to time (the “Credit Agreement”) entered into by and among BLACK BOX
CORPORATION OF PENNSYLVANIA, a Delaware corporation (“BBCPA”), and NORSTAN,
INC., a Minnesota corporation (“Norstan” – BBCPA and Norstan are sometimes
individually referred to therein as a “Borrower” and collectively as the
“Borrowers”), BLACK BOX CORPORATION, a Delaware corporation (the
“Parent”), the guarantors parties thereto from time to time (together with the
Parent, the “Guarantors”), the Lenders parties thereto from time to time and
CITIZENS BANK OF PENNSYLVANIA, a banking association organized and existing under the
laws of the Commonwealth of Pennsylvania, as administrative agent for the Lenders
parties thereunder (in such capacity, together with the successors in such capacity,
the “Agent”)

Dear Mr. McAndrew:

     Reference is made to the Credit Agreement. Terms in this letter agreement that are not
defined in this letter agreement shall have the meanings given to those terms in the Credit
Agreement, unless the circumstances clearly require otherwise.

     You have advised that the Borrowers may not deliver the audited consolidated statements of
income, cash flows and changes in stockholders’ equity of the Parent and its consolidated
Subsidiaries for the fiscal year of the Parent and its consolidated Subsidiaries ended March 31,
2007 and the associated Compliance Certificate within 120 days of the end of such fiscal year, as
required by Sections 6.01(a), 6.01(c) and 6.01(d) of the Credit Agreement. In addition, you have
advised that the Parent has not filed its Annual Report on Form 10-K for its fiscal year ended
March 31, 2007 (the “Form 10-K”) with the Securities and Exchange Commission on a timely basis, as
is required under Section 6.07(a) of the Credit Agreement. Accordingly, the Borrowers have advised
the Lenders that Potential Defaults and Events of Default may have occurred and may occur, as
described above, with regard to Section 6.01(a), (c) and (d) and Section 6.07(a) of the Credit
Agreement (collectively, the “Specified Defaults”). The Specified Defaults are among the subjects
of a letter agreement dated June 11, 2007.

     The Borrowers have requested the Lenders to waive the Specified Defaults until the earlier to
occur of (i) the first date on which the Borrowers shall have filed the Form 10-K with the
Securities and Exchange Commission and shall have delivered to the Lenders such annual financial
statements and related documentation and (ii) August 31, 2007. Subject to the terms

 

 

and conditions of this letter agreement, the Required Lenders agree that the Specified
Defaults are hereby waived until, and only until, the earlier to occur of (i) the first date on
which the Borrowers shall have filed the Form 10-K with the Securities and Exchange Commission and
shall have delivered to the Lenders such annual financial statements and related documentation and
(ii) August 31, 2007 (the period ending on such earlier date being herein referred to as the
“Waiver Period”.)

     The Borrowers represent and warrant that: (i) subject to the third sentence of this paragraph,
all of the representations and warranties contained in the Credit Agreement, the Notes and the
other Loan Documents are true and correct, as if made on the date hereof, (ii) after giving effect
to the terms of this letter agreement, no Event of Default or Potential Default exists on and as of
the date hereof and the Borrowers are in compliance with all of the terms of the Credit Agreement,
the Notes and the other Loan Documents, and (iii) the Borrowers are authorized to execute and
deliver this letter agreement. The Lenders have been advised by the Parent that, as a result of
the Parent’s ongoing review of its stock option practices, the Parent is restating its historical
financial statements to record additional non-cash compensation expense related to stock option
grants and to make other related adjustments. Accordingly, the Lenders have been advised by the
Parent that the financial statements, certificates, documents and other information previously
delivered to the Lenders were not accurate and complete in all material respects with respect to
these potential adjustments. The Lenders and the Agent specifically reserve all rights they may
have with respect to such matters, including without limitation rights under Article V of the
Credit Agreement notwithstanding the fact that Revolving Credit Loans have been made subsequent to
February 28, 2007 and subsequent to June 11, 2007 and may continue to be made after the date of
this letter agreement; provided, however, that during the Designated Period (as defined
below), the Lenders and the Agent will not utilize such inaccuracy or incompleteness to declare an
Event of Default. As used herein, the term “Designated Period” means the period ending on the
earlier to occur of (i) the end of the Waiver Period and (ii) the date on which the Lenders become
aware of information with respect to such matters which information is, in the judgment of the
Agent or the Required Lenders, when viewed together with the information provided to the Lenders by
the Parent on or before July 24, 2007, materially more adverse to the Parent than the information
provided to the Lenders by the Parent on or before July 24, 2007.

     Except as specifically waived hereby for the Waiver Period (or, in the case of the inaccuracy
and incompleteness referred to in the immediately preceding paragraph, the Designated Period), each
of the Credit Agreement and the Loan Documents shall remain in full force and effect and the
Borrowers ratify and affirm each of the Credit Agreement and the Loan Documents in its respective
entirety. The waiver set forth in this letter agreement shall apply only to the Specified Defaults
(or, in the case of declaration of an Event of Default arising out of the inaccuracy or
incompleteness referred to in the immediately preceding paragraph, only to such inaccuracy or
incompleteness) and only for the Waiver Period or the Designated Period, as the case may be, and no
other, further or broader waiver shall be implied. Neither the execution and delivery of this
waiver and of the prior letter agreements dated February 28, 2007, May 28, 2007, and June 11, 2007,
respectively, nor the making of Revolving Loans prior to or after the date hereof notwithstanding
the matters referred to in the immediately preceding paragraph shall be construed to establish a
course of conduct or imply that any other, future or further waivers shall be considered, provided
or agreed to.

     Nothing contained in this letter agreement shall be construed to impair any rights or remedies
of the Agent or the Lenders or their successors and assigns under the Credit Agreement or any of
the other Loan Documents or to affect or impair any rights or powers that the Agent or the Lenders
may have under the Credit Agreement or the other Loan Documents, whether for the recovery of the
indebtedness of the Borrowers to the Lenders in case of non-fulfillment of the terms, provisions
and covenants contained in this letter agreement or the terms, rights, powers and covenants of the
Credit Agreement and the other Loan Documents not specifically waived

- 2 -

 

by this letter agreement for the Waiver Period or the Designated Period, as the case may be.
All rights, powers and remedies of the Agent and the Lenders under any other agreement now or at
any time hereafter in force between the Agent, the Lenders and the Borrowers shall be cumulative
and not alternative and shall be in addition to all rights, powers and remedies given to the Agent
and the Lenders by law.

     If the foregoing accurately sets forth our understanding with respect to the matters contained
herein, please accept this letter agreement by signing where indicated below. This letter
agreement shall not be enforceable against the Lenders and shall not act as a waiver of any of the
terms of the Credit Agreement until such time as it has been accepted by the Borrowers, the
Guarantors and the Required Lenders.

	 	 	 	 	 
	 	Very truly yours,

 

CITIZENS BANK OF PENNSYLVANIA

 	 
	 	By:  	/s/ Debra L. McAllonis
 	 
	 	Title: Senior Vice President 	 
	 	 	 	 
	 

SIGNATURES CONTINUED ON THE NEXT PAGE

- 3 -

 

	 	 	 	 	 
	Agreed to and accepted

on the date first above written	 	 
	 
	 	 	 	 
	Borrowers:	 	 
	 
	 	 	 	 
	BLACK BOX CORPORATION OF PENNSYLVANIA
 	 	 
	By:

	 	/s/ Michael McAndrew
 

	 	 
	Title: Vice President, Secretary & Treasurer	 	 
	 
	 	 	 	 
	NORSTAN, INC.	 	 
	 
	 	 	 	 
	By: 

Title:

	 	/s/ Michael McAndrew
 

Vice President, CFO, Secretary & Treasurer
	 	 
	 
	 	 	 	 
	GUARANTORS:	 	 
	 
	 	 	 	 
	BLACK BOX CORPORATION and
each of the DOMESTIC SUBSIDIARIES
which are Guarantors	 	 
	 
	 	 	 	 
	By: 

Title:

	 	/s/ Michael McAndrew
 

Secretary
	 	 

SIGNATURES CONTINUED ON THE NEXT PAGE

- 4 -

 

	 	 	 	 	 
	Agreed to and accepted as of the date first above written	 	 
	 
	 	 	 	 
	LENDERS:	 	 
	 
	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Patrick J. Kaufmann
 

	 	 
	Printed name: Patrick J. Kaufmann

Title: Senior Vice President	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A., successor by merger to

Fleet National Bank	 	 
	 
	 	 	 	 
	By:

	 	/s/ Kenneth A. Wood	 	 
	 

	 	 	 	 
	Printed name: Kenneth A. Wood

Title: Senior Vice President	 	 
	 
	 	 	 	 
	NATIONAL CITY BANK OF PENNSYLVANIA	 	 
	 
	 	 	 	 
	By:

	 	/s/ Brian V. Ciaverella	 	 
	 

	 	 	 	 
	Printed name: Brian V. Ciaverella

Title: Senior Vice President	 	 
	 
	 	 	 	 
	US BANK	 	 
	 
	 	 	 	 
	By:

	 	/s/ David J. Dannemiller	 	 
	 

	 	 	 	 
	Printed name: David J. Dannemiller

Title: Vice President	 	 
	 
	 	 	 	 
	KEYBANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ David A. Wild	 	 
	 

	 	 	 	 
	Printed name: David A. Wild

Title: Vice President	 	 

SIGNATURES CONTINUED ON THE NEXT PAGE

- 5 -

 

	 	 	 	 	 
	MELLON BANK, N.A.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Daniel J. Lenckos
 

	 	 
	Printed name: Daniel J. Lenckos

Title: First Vice President	 	 
	 
	 	 	 	 
	FIFTH THIRD BANK	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jim Janovsky	 	 
	 

	 	 	 	 
	Printed name: Jim Janovsky

Title: Vice President	 	 
	 
	 	 	 	 
	COMERICA BANK	 	 
	 
	 	 	 	 
	By:

	 	/s/ Erica M. Krzeminski	 	 
	 

	 	 	 	 
	Printed name: Erica M. Krzeminski

Title: Assistant Vice President	 	 
	 
	 	 	 	 
	PEOPLE’S UNITED BANK	 	 
	 
	 	 	 	 
	By:

	 	/s/ George F. Paik	 	 
	 

	 	 	 	 
	Printed name: George F. Paik

Title: Vice President	 	 
	 
	 	 	 	 
	PNC BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Thomas A. Majeski	 	 
	 

	 	 	 	 
	Printed name: Thomas A. Majeski

Title: Vice President	 	 

- 6 -EX-10.24

 

Exhibit 10.24

SUMMARY OF DIRECTOR COMPENSATION

     Directors who are not employees of Black Box Corporation (the “Company”) receive directors’
fees of $7,500 per annum, paid quarterly, and an additional fee of $2,000 for each meeting of the
Board of Directors attended in person and $1,000 for each meeting of the Board of Directors
attended via telephone. The Chairman of the Board also receives an annual fee of $60,000, paid
quarterly. Non-employee directors also may receive grants of stock options or stock appreciation
rights under the 1992 Director Stock Option Plan, as amended (the “Director Plan”). During Fiscal
2007, non-employee directors were each granted an option to purchase 7,000 shares of the Company’s
common stock, par value $.001 per share (the “Common Stock”), under the Director Plan at an
exercise price of $39.41 per share, the fair market value of the Common Stock on the date of grant
of the options.

     Members of the Audit Committee of the Board of Directors receive a fee of $1,500 for each
meeting of the Audit Committee attended in person or by telephone. The Chairman of the Audit
Committee also receives an annual fee of $6,000, paid quarterly.

     Members of the Compensation Committee of the Board of Directors, Governance Committee of the
Board of Directors and Nominating Committee of the Board of Directors receive a fee of $1,000 for
each meeting of such committee attended in person or by telephone.

     In addition, the Company maintains directors’ and officers’ liability insurance. Directors
also are reimbursed customary expenses for attending meetings of the board of directors, board
committees and stockholders.

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