Document:

Exhibit 10.2

 

WELLS FARGO

 

AMENDED AND RESTATED REVOLVING LINE OF CREDIT NOTE

 

	
$10,000,000.00
    	
Minneapolis, Minnesota
    
	
 
    	
July 31, 2012
    

 

FOR VALUE RECEIVED, the undersigned DATALINK CORPORATION (“Borrower”) promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) at its Regional Commercial Banking Office located in Minneapolis, Minnesota, or at such other place as the holder hereof may designate, in lawful money of the United States of America and in immediately available funds, the principal sum of TEN MILLION AND NO/100  DOLLARS ($10,000,000.00), with interest thereon as set forth herein.

 

This Note is the Line of Credit Note referenced in that certain Credit Agreement dated as of March 31, 2011 (as amended from time to time, the “Credit Agreement”)  by and among Bank and Borrower. The terms of the Credit Agreement are incorporated herein by reference. Capitalized terms not defined herein shall have the meanings given to them in the Credit Agreement.

 

1.                                       Definitions. As used herein, the following terms shall have the meanings se forth after each, and any other term defined in this Note shall have the meaning set forth at the place defined:

 

“Business Day” means any day except a Saturday, Sunday or any other day on which commercial banks in Minnesota are authorized or required by law to close.

 

“Daily Three Month LIBOR” means, for each day, LIBOR as quoted by Wells Fargo for a period of time approximately equal to three months in duration.

 

“LIBOR” means the rate per annum (rounded upward, if necessary, to the nearest whole 1/8 of 1%) and determined pursuant to the following formula:

 

	
LIBOR=
    	
Base LIBOR
    
	
 
    	
100% - LIBOR Reserve   Percentage
    

 

“Base  LIBOR” means the rate per annum for United States dollar deposits quoted by Bank as the Inter-Bank Market Offered Rate, with the understanding that such rate is quoted by Bank for the purpose of calculating effective rates of interest for loans making reference thereto. Borrower understands and agrees that Bank may base its quotation of the Inter-Bank Market Offered Rate upon such offers or other market indicators of the Inter-Bank Market as Bank in its discretion deems appropriate including, but not limited to, the rate offered for U.S. dollar deposits on the London Inter-Bank Market.

 

 

“LIBOR Reserve Percentage” means the reserve percentage prescribed by the Board of Governors of the Federal Reserve System (or any successor) for “Eurocurrency Liabilities” (as defined in Regulation D of the Federal Reserve Board, as amended), adjusted by Bank for expected changes in such reserve percentage.

 

2.                                       Interest. The outstanding principal balance of this Note shall bear interest (computed on the basis of a 360-day year, actual days elapsed) at a rate per annum equal to two percent (2.00%) above the Daily Three Month LIBOR in effect from time to time.

 

3.                                       Taxes and Regulatory Costs. Borrower shall pay to Bank immediately upon demand, in addition to any other amounts due or to become due hereunder, any and all (i) withholdings, interest equalization taxes, stamp taxes or other taxes (except income and franchise taxes) imposed by any domestic or foreign governmental authority and related in any manner to LIBOR, and (ii) future, supplemental, emergency or other changes in the LIBOR Reserve Percentage, assessment rates imposed by the Federal Deposit Insurance Corporation, or similar requirements or costs imposed by any domestic or foreign governmental authority or resulting from compliance by Bank with any request or directive (whether or not having the force of law) from any central bank or other governmental authority and related in any manner to LIBOR to the extent they are not included in the calculation of LIBOR. In determining which of the foregoing are attributable to any LIBOR option available to Borrower hereunder, any reasonable allocation made by Bank among its operations shall be conclusive and binding upon Borrower.

 

4.                                       Payment of Interest. Interest accrued on this Note shall be payable on the last day of each month, commencing July 31, 2012.

 

5.                                       Default Interest. From and after the maturity date of this Note, or such earlier date as all principal owing hereunder becomes due and payable by acceleration or otherwise, or at Bank’s option upon the occurrence, and during the continuance of an Event of Default, the outstanding principal balance of this Note shall bear interest at an increased rate per annum (computed on the basis of a 360-day year, actual days elapsed) equal to two percent (2%) above the rate of interest from time to time applicable to this Note.

 

6.                                       Repayment and Prepayment. The outstanding principal balance of this Note shall be due and payable in full on the Maturity Date (as defined in the Credit Agreement).

 

a.                                       Application of Payments. Each payment made on this Note shall be credited first, to any interest then due and second, to the outstanding principal balance hereof.

 

b.                                      Prepayment. Borrower may prepay principal in whole or in part on this Note at any time without premium or penalty.

 

7.                                  Events of Default. This Note is made pursuant to and is subject to the terms and conditions of the Credit Agreement. Any default in the payment or performance of any obligation under this Note, or any defined event of default under the Credit Agreement, shall constitute an “Event of Default” under this Note.

 

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8.                                  Remedies. Upon the occurrence of any Event of Default, the holder of this Note, at the holder’s option, may declare all sums of principal and interest outstanding hereunder to be immediately due and payable without presentment, demand, notice of nonperformance, notice of protest, protest or notice of dishonor, all of which are expressly waived by Borrower. Borrower shall pay to the holder immediately upon demand the full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys’ fees (to include outside counsel fees and all allocated costs of the holder’s in-house counsel), expended or incurred by the holder in connection with the enforcement of the holder’s rights and/or the collection of any amounts which become due to the holder under this Note, and the prosecution or defense of any action in any way related to this Note, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other person) relating to Borrower or any other person or entity.

 

9.                                       Miscellaneous.

 

a.                                       Replacement Note. This Note is issued in replacement and substitution for, but not in repayment or satisfaction of, that certain Revolving Line of Credit Note of Borrowers dated as of March 31, 2011 and made payable to the order of Bank in the original principal amount of $10,000,000.

 

b.                                      Obligations Joint and Several. Should more than one person or entity sign this Note as a Borrower, the obligations of each such Borrower shall be joint and several.

 

c.                                       Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Minnesota.

 

d.                                      Usury Exemption. The extension of credit evidenced by this Note, and the rate of interest applicable hereto, shall be governed by Section 334.01, Subdivision 2 of the Minnesota Statutes.

 

[Signature Page to Follow]

 

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IN WITNESS WHEREOF, the undersigned has executed this Note as of July 31, 2012.

 

DATALINK CORPORATION

 

	
/s/ Gregory T. Barnum
    	
 
    
	
By: Gregory T. Barnum
    	
 
    
	
Its:  Vice President   Finance/Chief Financial Officer
    	
 
    

 

[Signature Page to $10,000,000 Amended and Restated Revolving Line of Credit Note
 in favor of Wells Fargo Bank, National Association]Exhibit 10.3

 

WELLS FARGO

 

THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (“Amendment”) dated as of July 31, 2012, is made by and between DATALINK CORPORATION, a Minnesota corporation (the “Borrower”), and WELLS FARGO BANK, NATIONAL  ASSOCIATION, a national banking association (“Bank”).

 

A.                                   Borrower and Bank are parties to that certain Credit Agreement dated as of March 31, 2011 (as amended and as the same may be further amended, restated and/or supplemented, the “Credit Agreement”).

 

B.                                     Borrower and Bank wish to extend the Maturity Date of the Line of Credit pursuant to the terms and conditions contained herein.

 

Now, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:

 

1.                                       Defined Terms. Capitalized terms used in this Amendment shall have the meanings set forth in the Credit Agreement unless otherwise defined herein.

 

2.                                       Maturity Date. Section 1.1(a) of the Credit Agreement is deleted in its entirety and is replaced with the following terms:

 

(a)                                  Line of Credit. Subject to the terms and conditions of this Agreement, Bank hereby agrees to make advances to Borrower from time to time up to and including the July 31, 2014 (the “Maturity Date”), not to exceed at any time the aggregate principal amount of TEN MILLION AND NO/100 DOLLARS ($10,000,000.00) (“Line of Credit”), the proceeds of which shall be used for general working capital purposes. Borrower’s Obligation to repay advances under the Line of Credit shall be evidenced by a promissory note dated as of the date of the Third Amendment to Credit Agreement (as amended, restated or replaced from time to time, the “Line of Credit Note”), all terms of which are incorporated herein by this reference.

 

3.                                       Projected Financial Statements. Section 4.3(d) of the Credit Agreement is hereby deleted in its entirety, and replaced with the following:

 

(d)                                  Intentionally Deleted.

 

4.                                       Amended and Restated Line of Credit Note. In conjunction with the execution and delivery of this Third Amendment to Credit Agreement, Borrower shall execute and deliver that certain Amended and Restated Revolving Line of Credit Note evidencing the extended Maturity Date as set forth in this Third Amendment to Credit Agreement.

 

 

5.                                       No Other Changes. Except as explicitly amended by this Amendment, all of the terms and conditions of the Credit Agreement shall remain in full force and effect and shall apply to any advance or letter of credit thereunder.

 

6.                                       Conditions Precedent. This Amendment shall be effective when Bank shall have received an executed original hereof, together with the following, each in form and substance acceptable to the Bank:

 

(a)                                  the Amended and Restated Revolving Line of Credit Note executed by Borrower; and

 

(b)                                 such other documents and agreements otherwise required by Bank in its reasonable discretion.

 

7.                                       Representations and Warranties. Borrower hereby represents and Warrants to Bank as follows:

 

(a)                                  Borrower has all requisite power and authority to execute this Amendment and to perform all of its obligations thereunder, and this Amendment has been duly executed and delivered by Borrower and constitutes the legal, valid and binding obligation of Borrower, enforceable in accordance with its terms.

 

(b)                                 The execution, delivery and performance by Borrower of this Amendment has been duly authorized by all necessary corporate action and does not (i) require any authorization, consent or approval by any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) violate any provision of any law, rule or regulation or of any order, writ, injunction or decree presently in effect, having applicability to Borrower, or the articles of incorporation or by-laws of Borrower, or (iii) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other agreement, lease or instrument to which Borrower is a party or by which it or its properties may be bound or affected.

 

(c)                                  All of the representations and warranties contained in Article II of the Credit Agreement are correct on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date.

 

(d)                                 Borrower is in compliance with all of the financial covenants set forth in the Credit Agreement for the most recent measurement dates and no Event of Default exists or will result.

 

8.                                       References. All references in the Credit Agreement to “this Agreement” shall be deemed to refer to the Credit Agreement as amended hereby; and any and all references in any security agreement, or other document held by Bank, to the Credit Agreement shall be deemed to refer to the Credit Agreement as amended hereby.

 

9.                                       No Waiver. The execution of this Amendment and acceptance of any documents related hereto shall not be deemed to be a waiver of any default or Event of Default under the Credit Agreement or breach, default or event of default under any security agreement or other

 

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document held by Bank, whether or not known to Bank and whether or not existing on the date of this Amendment.

 

10.                                 No Defense/Set-Off. Borrower acknowledges to and agrees with Bank that no events, conditions or circumstances have arisen or exist as of the date hereof which would give Borrower the right to assert a defense, counterclaim and/or setoff to any claim by Bank for payment of the Obligations, and if any so exist as of the date hereof, whether know or unknown, absolute or contingent, liquidated or unliquidated, the same are hereby absolutely and forever waived and released.

 

11.                                 Release. Borrower hereby absolutely and unconditionally releases and forever discharges Bank, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents, legal counsel and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which Borrower has had, now has or has made claim to have against any such person for or by reason of any act, Omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown, and further waive and release any defenses any of them now hold with respect to Bank’s enforcement of the Loan Documents.

 

12.                                 Costs and Expenses. Borrower hereby reaffirms its agreement under the Credit Agreement to pay or reimburse Bank on demand for all costs and expenses incurred by Bank in connection with the Loan Documents, including without limitation all reasonable fees and disbursements of legal counsel. Without limiting the generality of the foregoing, Borrower specifically agrees to pay all fees and disbursements of counsel to Bank for the Services performed by such counsel in connection with the preparation of this Amendment and the documents and instruments incidental hereto.

 

13.                                 Merger. All prior oral and written Communications, commitments, alleged commitments, promises, alleged promises, agreements and alleged agreements by or between Bank and Borrower are hereby merged into this Agreement and the Loan Documents, and shall not be enforceable unless expressly set forth in this Agreement and the Loan Documents.

 

14.                                 No Other Amendments. Except as expressly amended hereby or as previously amended in writing, each of the Credit Agreement and the other Loan Documents shall remain in full force and effect in accordance with their original terms.

 

15.                                 Miscellaneous. This Amendment may be executed in any number of counterparts and by facsimile or electronic (pdf) Submission, each of which when so executed and delivered shall be deemed an original and all of which counterparts, taken together, shall constitute one and the same instrument.

 

[Signature Page to Follow on Next Page]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Credit Agreement to be duly executed as of July 31, 2012.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
DATALINK CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gregory T. Barnum
    
	
 
    	
Name:
    	
Gregory T. Barnum
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BANK:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ R. James Hancock
    
	
 
    	
Name:
    	
R. James Hancock
    
	
 
    	
Title:
    	
Vice President
    

 

 

[Signature Page to Third Amendment to Credit Agreement]

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