Document:

EXHIBIT 10.4

EPAM SYSTEMS, INC.

Non-Employee Director Compensation Policy

Effective as of January 1, 2014, as amended December 16, 2013

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 the Board in its sole discretion determines (i) is (or would be, if the Company’s common stock, par value $0.001 per share (“Common Stock”), were then listed on the New York Stock Exchange) “independent” of the Company within the meaning of Section 303A of the New York Stock Exchange Listed Company Manual and (ii) is not affiliated with any stockholder or group of stockholders who beneficially own 10% or more of the Company’s Common Stock (calculated on a fully diluted basis and assuming the conversion of all shares of the Company’s preferred stock, par value $0.001 per share) (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 (the “Plan”).

Annual Cash Retainers

Service as Non-Employee Director:  Each Non-Employee Director shall receive an annual retainer (a “Retainer”) in the amount of $40,000 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; provided, however, that any Non-Employee Director who becomes a member of the Board on a date that is not the first day of a calendar quarter shall receive a pro-rated Retainer for his or her service on the Board for such quarter based on the number of days of such service during such quarter.

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 $8,000, $5,000 and/or $3,000 for his or her service on each such Committee, respectively, payable in cash in arrears in equal quarterly installments on each Quarterly Payment Date in respect of the calendar quarter that includes such Quarterly Payment Date; provided, however, that any Non-Employee Director who becomes a member of any Committee on a date that is not the first day of a calendar quarter shall receive a pro-rated payment for his or her service on such Committee for such quarter based on the number of days of such service during such quarter.

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, $10,000 and/or $7,500 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 in equal quarterly installments on each Quarterly Payment Date in respect of the calendar quarter that includes such Quarterly Payment Date; provided, however, that any Non-Employee Director who becomes a Chairperson of any Committee on a date that is not the first day of a calendar quarter shall receive a pro-rated payment for his or her service as Chairperson of such Committee for such quarter based on the number of days of such service during such quarter.

Additional Non-Employee Director Compensation

Any Non-Employee Director who attends more than ten meetings of the Board, or more than ten 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 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 that occur after the date on which the Secretary receives such form.

As of each Quarterly 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; 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.mine_ex101.htm

Exhibit 10.1

 

LINE OF CREDIT

	 	 	  
	$	2,000,000.00	 	
May 1, 2014

	 	 	 	  

 

FOR VALUE RECEIVED, MINERCO RESOURCES INC. (“MINE”), a Nevada corporation (the “Company”), having an office at 20 Trafalgar Square, Suite 455, Nashua, NH 03063, does hereby promise to pay to the order of POST OAK LLC (the “Lender”), having an office at 405 Lexington Avenue, New York, NY 10174, at such place as Lender may designate in writing, in lawful money of the United States of America, the principal sum of up to Two Million Dollars ($2,000,000.00), or such lesser amount as may be borrowed by the Company as Advances under this line of credit (the “Line of Credit”).

 

This Line of Credit shall bear interest at the rate of ten percent (10.00%) per annum unless modified by paragraph 4 of this Line of Credit.

 

The entire outstanding principal amount of this Line of Credit shall be due and payable on April 30, 2016 (the “Maturity Date”).

 

1. Advances.  Subject to the provisions of Section 2 below, the Company shall have the right, at any time or from time to time prior to the Maturity Date to request loans and advances from the Lender (individually an “Advance” and collectively, the “Advances”).  Each such Advance shall be considered a legal promissory note, shall be in the amount of $250,000, and shall be reflected on Schedule A to this Line of Credit and initialed as received by an officer or director of the Company.  The Lender shall not be under any obligation to make advances under this Line of Credit.

 

2. Use of Proceeds.  All proceeds received by the Company from each Advance made by the Lender under this Line of Credit shall be used by the Company for expenses incurred by the Company in connection with working capital and any other operating expenses determined to be necessary by the Company.

 

3. No Guarantees of Payment.  Nothing contained in this Line of Credit or any other agreement or instrument shall be deemed or construed to constitute a guaranty or undertaking by any shareholder, officer or director of the Company or any third person of any of the obligations of the Company under this Line of Credit.

 

4. Payment on Maturity Date: Prepayments.  The entire balance of unpaid Advances under this Line of Credit shall be due and payable in full on the Maturity Date.  At any time, and from time to time before the Maturity Date, Company shall have the right to prepay all or any part of the Advances, in whole or in part, without premium or penalty.  On the Maturity Date, if this Line of Credit has not been paid in full, it shall bear interest from inception at the rate of fifteen percent (15.00%) per annum until paid in full.

 

  

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5. Interest Payments, Balloon Payment.  Company shall pay interest at the rate of ten percent (10.00%) per annum, calculated on a per day basis for each Advance made by Lender, and Company shall make one interest payment in twelve (12) months and one interest payment in eighteen (18) months.  Company shall make a payment for the entire unpaid balance of all Advances, plus any accrued unpaid interest, as per a “balloon” payment, in two (2) years from the date of the Line of Credit.

 

6. Security.  As security for the Line of Credit, immediately upon the first Advance made by Lender to Company, Company shall cause and/or direct Preferred Class “C” Shares of Minerco Resources, Inc. (“MINE”) to be issued to Lender.  The amount of shares shall be sufficient to provide adequate security to the Lender for any Advances made to Company, and shall be reasonably determined by the parties at a later date.  Company shall contact its transfer agent Island Stock Transfer to initiate this issuance, with all proper corporate approvals.

 

7. Choice of Law: Venue and Jurisdiction.  This Line of Credit shall be governed and controlled as to validity, enforcement, interpretation, construction, effect and in all other respects, including, but not limited to, the legality of the interest charged hereunder, by the statues, laws and decisions of the State of New York.  The exclusive venue and/or jurisdiction for any proceeding that may be brought in connection with this Line of Credit shall be any federal and state court located in New York, New York and each of the parties hereto irrevocably consents to such venue and/or jurisdiction.

8. Miscellaneous Provisions.

 

(a) This Line of Credit may not be amended or modified, and revision hereto shall not be effective, except by an instrument in writing executed by Company and Lender.

 

(b) Any and all notices, demands or requests required or permitted to be given under this Line of Credit shall be given in writing and sent, by registered or certified U.S. mail, return receipt requested, by hand, or by overnight courier, addressed to the parties hereto at their addresses set forth above or such addresses as they may from time-to-time designate by written notice, given in accordance with the terms of this Section.  A party may change its address for notification purposes by giving the other parties notice in accordance with the terms of this Section 8(b) of the new address and the date upon which it shall become effective.

 

(c) Company hereby waive presentment, protest and demand, notice of protest, dishonor and nonpayment of this Line of Credit, and expressly agrees that, without in any way affecting the liability of Company hereunder, Lender may extend the time for payment of any amount due hereunder and release any party liable hereunder without in any other way affecting the liability and obligation of Company.  Company shall pay all attorneys’ fees and other costs of collection actually incurred by Lender in connection with Lender enforcing its rights under this Line of Credit to receive payment or otherwise.

 

(d) Headings at the beginning of each numbered Section of this Line of Credit are intended solely for convenience of reference and are not to be deemed or construed to be a part of this Line of Credit.

 

 

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 IN WITNESS WHEREOF, Company has executed this Line of Credit as of the date first set forth above.

MINERCO RESOURCES, INC.

By: /s/ John Powers                                                             May 1, 2014        

John Powers                                                                Date

President & CEO

ACCEPTED AND ACKNOWLEDGED:

POST OAK LLC

By:   /s/ H. McFarland                           

Managing Director

 

 

NOTARY:

 

 

  

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SCHEDULE A

 

	  

Date of Advance

	  

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Company, Acknowledging

Receipt of Advance

	
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