Document:

Text of Amendment to Business Financing Agreement and Agreement for Wholesale
      Financing

    AMENDMENT
      TO BUSINESS FINANCING AGREEMENT AND

    AGREEMENT
      FOR WHOLESALE FINANCING

    

    This
      Amendment is made to (i) that certain Business Financing Agreement executed
      on
      the 31st day August, 2000, between ePlus
      Technology, inc. ("Dealer")
      and GE
      Commercial Distribution Finance Corporation ("CDF"),
      as amended ("BFA") and (ii) that certain Agreement for Wholesale Financing
      between Dealer and CDF dated August 31, 2000, as amended ("AWF").

    

    FOR
      VALUE
      RECEIVED, CDF and Dealer agree as follows (capitalized terms shall have the
      same
      meaning as defined in the BFA unless otherwise indicated):

    

    1.
      Section 2.1 of the BFA is hereby amended in its entirety to read as
      follows:

    

    "2.1
      Accounts Receivable Facility. Subject
      to the terms of this Agreement, CDF agrees to provide to Dealer an Accounts
      Receivable Facility of Thirty
      Million Dollars ($30,000,000.00);
      provided, however, that (i) at no time during the Overline Period (as defined
      below) will the principal amount outstanding under the Accounts Receivable
      Facility and Dealer's inventory floorplan credit facility with CDF (excluding
      open
      approvals for which CDF has not yet received the invoice) exceed, in the
      aggregate, Eighty-Five
      Million Dollars ($85,000,000.00), and (ii)
      at
      no time other
      than during the
      Overline Period will the principal amount outstanding under the Accounts
      Receivable Facility and Dealer's inventory floorplan credit facility with CDF
      (including
      open
      approvals for which CDF has not yet received the invoice) exceed, in the
      aggregate, Eighty-Five
      Million Dollars ($85,000,000.00).
      CDF's
      decision to advance funds will not be binding until the funds are actually
      advanced." 

    

    In
      addition, subject to the terms of the AWF, CDF agrees to provide to Dealer
      an
      inventory floorplan credit facility of (x) from June 26, 2006 through September
      21, 2006 (“Overline Period”), Eighty-Five
      Million Dollars ($85,000,000.00)
      (plus an
      additional Fifteen
      Million Dollars ($15,000,000.00)
      for open
      approvals for which CDF has not yet received the invoice), and (y) at all times
      other than during the Overline Period, Eighty-Five
      Million Dollars ($85,000,000.00)
      (including
      open
      approvals for which CDF has not yet received the invoice); provided, however,
      that (i) at no time during the Overline Period will the principal amount
      outstanding under Dealer’s inventory floorplan credit facility with CDF
      (excluding
      open
      approvals for which CDF has not yet received the invoice) and the principal
      amount outstanding under the Accounts Receivable Facility exceed, in the
      aggregate, Eighty-Five
      Million Dollars ($85,000,000.00) and
      (ii)
      at no time other than during the Overline Period will the principal amount
      outstanding under the Dealer's inventory floorplan credit facility with CDF
      (including
      open
      approvals for which CDF has not yet received the invoice) and the principal
      amount outstanding under the Accounts Receivable Facility exceed, in the
      aggregate, Eighty-Five
      Million Dollars ($85,000,000.00).
      CDF's
      decision to advance funds will not be binding until the funds are actually
      advanced.

    

    Dealer
      waives notice of CDF's acceptance of this Amendment.

    

    All
      other
      terms and provisions of the AWF and BFA, to the extent not inconsistent with
      the
      foregoing, are ratified and remain unchanged and in full force and
      effect.

    

    IN
      WITNESS WHEREOF, each of Dealer and CDF have executed this Amendment on this
      29th
      day of
      June, 2006.

     

                                                                                               ePlus
      Technology, inc.

    Attest:                                
      

                       /s/
      Steven J. Mencarini                             

    /s/
      Erica S. Stoecker                                Steven
      J.
      Mencarini

    Erica
      S.
      Stoecker,
      Secretary                                          
Chief
      Financial Officer

     

     

                                                                                              
      GE COMMERCIAL DISTRIBUTION

                                                                                              
      FINANCE
      CORPORATION

    

    
                                                                                                 
        /s/ David Mintert

                                                                                                 
David
        Mintert

                                                                                                 
        Vice President of OperationsAmendment to Credit Agreement

    FIRST
      AMENDMENT TO CREDIT AGREEMENT

    

    This
      FIRST AMENDMENT TO CREDIT AGREEMENT (the “First Amendment”) dated July 11, 2006,
      is by and among ePlus inc., a Delaware corporation (“ePlus”), the Subsidiaries
      of ePlus signatory hereto (including ePlus, each individually a “Borrower” and
      collectively, the “Borrowers”), the Banks signatory hereto (the “Banks”), and
      National City Bank, as Administrative Agent for the Banks (the “Administrative
      Agent”).

    

    BACKGROUND

    

    A.  Pursuant
      to that certain Credit Agreement dated
      September
      23,
      2005,
      by and
      among the Borrowers, the Banks, and the Administrative Agent (as the same may
      be
      modified and amended from time to time, including by this First Amendment,
      the
“Credit Agreement”), the Banks agreed, inter
      alia,
      to
      extend to the Borrowers a revolving credit facility in the maximum aggregate
      principal amount of $35,000,000.

    

    B.  The
      Borrowers did not deliver their annual audited financial statements prior to
      May
      31, 2006, as required by Section 5.1(a) of the Credit Agreement (collectively,
      the “Financial Statement Event”), and have advised the Banks that the will be
      unable to deliver financial statements in the timeframe set forth in Section
      5.1
      of the Credit Agreement.

    

    C.  The
      Borrowers have requested an extension of the Credit Termination Date from July
      21, 2006, to July 10, 2009, and an amendment to the applicable margins and
      Section 5.1, to which the Banks are willing to agree, on the terms and subject
      to the conditions set forth herein.

    

    NOW,
      THEREFORE, in consideration of the foregoing premises and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, and intending to be legally bound hereby, the parties hereto
      agree
      as follows:

    

    1.  Definitions.
      

    

    (a)  General
      Rule.
      Except
      as expressly set forth herein, all capitalized terms used and not defined herein
      shall have the respective meanings ascribed thereto in the Credit Agreement.
      

    

    (b)  Additional
      Definition.
      The
      following additional definition shall be added to Article 1 of the Credit
      Agreement to read in its entirety as follows:

    

    “First
      Amendment”
means
      the First Amendment to this Agreement dated July 11, 2006.

    

    (c)  Amended
      Definition.
      The
      following definition in Article 1 of the Credit Agreement shall be amended
      and
      restated to read in its entirety as follows:

    

    “Credit
      Termination
      Date”
      means
      the earliest to occur of (a) the date of termination in full, pursuant to §§ 2.9
      or 8.1 hereof, of the obligations of such Bank under § 2.1 or (b) July 10,
      2009.

    

    2.  Amendment
      to Section 5.1.
      Section
      5.1 of the Credit Agreement is hereby amended and restated to read in its
      entirety as set forth on Schedule 1 to this First Amendment.

    

    3.  Modification
      of Schedule 2.
      Schedule 2 of the Credit Agreement is hereby amended and restated to read in
      its
      entirety as set forth on Schedule 2 to this First Amendment.

    
       

       

      
        
          
          

        

                        

      

    

    
        4.    Representations
      and Warranties. Each Borrower hereby represents and warrants to the
      Administrative Agent and each Bank that, except as to the Financial Statement
      Event, as to such Borrower:

     

    (a)  Representations.
      each of the representations and warranties of such Borrower contained in the
      Credit Agreement and/or the other Loan Documents are true, accurate and correct
      in all material respects on and as of the date hereof as if made on and as
      of
      the date hereof, except to the extent such representation or warranty was made
      as of a specific date;

    

    (b)  Power
      and Authority.
      (i)
      such Borrower has the power and authority under the laws of its jurisdiction
      of
      organization and under its organizational documents to enter into and perform
      this First Amendment and any other documents which the Banks require such
      Borrower to deliver hereunder (this First Amendment and any such additional
      documents delivered in connection with the First Amendment are herein referred
      to as the “Amendment Documents”); (ii) such Borrower is in good standing in its
      jurisdiction of organization and each additional jurisdiction in which it is
      required to be so qualified; and (iii) all actions, corporate or otherwise,
      necessary or appropriate for the due execution and full performance by the
      Borrower of the First Amendment have been adopted and taken and, upon their
      execution, the Credit Agreement, as amended by this First Amendment will
      constitute the valid and binding obligations of the Borrower enforceable in
      accordance with their respective terms;

    

    (c)  No
      Violations of Law or Agreements.
      the
      making and performance of the First Amendment will not violate any provisions
      of
      any law or regulation, federal, state, local, or foreign, or the organizational
      documents of such Borrower, or result in any breach or violation of, or
      constitute a default or require the obtaining of any consent under, any
      agreement or instrument by which such Borrower or its property may be
      bound;

    

    (d)  No
      Default.
      no
      Default or Event of Default has occurred and is continuing; and

    

    (e)  No
      Material Adverse Effect.
      No
      Material Adverse Effect has occurred since September 23, 2005.

    

    5.  Conditions
      to Effectiveness of Amendment.
      This
      First Amendment shall be effective upon the Administrative Agent’s receipt of
      the following, each in form and substance reasonably satisfactory to the
      Banks:

    

    (a)  First
      Amendment.
      this
      First Amendment, duly executed by the Borrowers and the Banks; 

    

    (b)  Consent
      and Waivers.
      copies
      of any consents or waivers necessary in order for the Borrowers to comply with
      or perform any of its covenants, agreements or obligations contained in any
      agreement, which are required as a result of the Borrowers’ execution of this
      First Amendment, if any; and

    

    (c)  Other
      Documents and Actions.
      such
      additional agreements, instruments, documents, writings and actions as the
      Banks
      may reasonably request.

    

    6.  Limited
      Waiver; Ratification.
      Subject
      to the terms and conditions of this First Amendment, the Banks and
      Administrative Agent hereby waive the Financial Statement Event (provided that
      the delivery of the required
      audited financial statements for the period ending March 31, 2006, 

    
      
        2

      

      
        
        

        
        

      

      
        
        
pursuant
        to Section 5.1(a) of the Credit Agreement as amended hereby, occurs not later
        than July 28, 2006). Except as stated in the preceding sentence, the execution,
        delivery and performance of this First Amendment shall not operate as a waiver
        of any right, power or remedy of the Administrative Agent or the Banks under
        the
        Credit Agreement or any Loan Document, or constitute a waiver of any provision
        thereof. Except as expressly modified hereby, all terms, conditions and
        provisions of the Credit Agreement and the other Loan Documents shall remain
        in
        full force and effect and are hereby ratified and confirmed by any Borrower.
        Nothing contained herein constitutes an agreement or obligation by the
        Administrative Agent or any Bank to grant any further amendments to any of
        the
        Loan Documents.

    

    

    7.  Acknowledgments.
      To
      induce the Banks to enter into this First Amendment, each Borrower acknowledges,
      agrees, warrants, and represents that:

    

    (a)  Acknowledgment
      of Obligations; Collateral; Waiver of Claims.
      (i) the
      Loan Documents are valid and enforceable against, and all of the terms and
      conditions of the Loan Documents are binding on, the Borrowers; (ii) the liens
      and security interests granted to the Administrative Agent by the Borrowers
      pursuant to the Loan Documents are valid, legal and binding, properly recorded
      or filed and first priority perfected liens and security interests; and (iii)
      the Borrowers hereby waive any and all defenses, set-offs and counterclaims
      which they, whether jointly or severally, may have or claim to have against
      the
      Administrative Agent or any Bank as of the date hereof.

    

    (b)  No
      Waiver of Existing Defaults.
      Other
      than the Financial Statement Event, no Default or Event of Default exists
      immediately before or immediately after giving effect to this First Amendment.
      Nothing in this First Amendment nor any communication between the Administrative
      Agent, any Bank, any Borrower or any of their respective officers, agents,
      employees or representatives shall be deemed to constitute a waiver of (i)
      any
      Default or Event of Default arising as a result of the foregoing representation
      proving to be false or incorrect in any material respect; or (ii) any rights
      or
      remedies which the Administrative Agent or any Bank has against any Borrower
      under the Credit Agreement or any other Loan Document and/or applicable law,
      with respect to any such Default or Event of Default arising as a result of
      the
      foregoing representation proving to be false or incorrect in any material
      respect.

    

    8.  Binding
      Effect.
      This
      First Amendment shall be binding upon and inure to the benefit of the parties
      hereto and their respective successors and assigns.

    

    9.  Governing
      Law.
      This
      First Amendment and all rights and obligations of the parties hereunder shall
      be
      governed by and be construed and enforced in accordance with the laws of the
      Commonwealth of Pennsylvania without regard to Pennsylvania or federal
      principles of conflict of laws.

    

    10.  Headings.
      The
      headings of the sections of this First Amendment are inserted for convenience
      only and shall not be deemed to constitute a part of this First
      Amendment.

    

    11.  Counterparts.
      This
      First Amendment may be executed in any number of counterparts with the same
      affect as if all of the signatures on such counterparts appeared on one document
      and each counterpart shall be deemed an original.

    
      
        3

        

        
        

      

      
        
        

        
        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this First Amendment to Credit
      Agreement to be executed under seal by their duly authorized officers, all
      as of
      the day and year first written above.

     

    ePLUS
      inc.

     

    By:
/s/
      Kleyton L.Parkhurst

    Name:
      Kleyton
      L. Parkhurst

    Title:
      Senior
      Vice President

     

    ePLUS
      Group, inc.

     

    By:
/s/
      Kleyton L.Parkhurst

    Name:
      Kleyton
      L. Parkhurst

    Title:
      Senior
      Vice President

     

    ePLUS
      Government, inc.

     

    By:
/s/
      Kleyton L.Parkhurst

    Name:
      Kleyton
      L. Parkhurst

    Title:
      Senior
      Vice President

     

    ePLUS
      Capital, inc.

     

    By:
/s/
      Kleyton L.Parkhurst

    Name:
      Kleyton
      L. Parkhurst

    Title:
      President

     

    
      
        4

        

        
        

      

      
        
        

        
        

      

      
        
        

      

    

    NATIONAL
      CITY BANK

     

    By:
/s/
      Michael J. Labrum

    
      Name:
        Michael
        J. Labrum

      Title:
        Senior
        Vice President

    

    

     

    BRANCH
      BANKING AND TRUST COMPANY OF VIRGINIA

     

    
      By:
/s/
        Ron Gudbrandsen

      
        Name:
          Ron
          Gudbrandsen

        Title:
          Vice
President

      

    

    
      
        5

        

        
        

      

      
        
        

        
        

      

      
        
        

      

    

    SCHEDULE
      1

     

    Section
      5.1    Financial
      Statements and Reports.
      Furnish
      to the Administrative Agent and to each Bank the following financial
      information: 

     

    (a)    Annual
      Statements.
      As soon
      as available and in any event within one hundred twenty (120) days after the
      end
      of each Fiscal Year, the consolidated and consolidating balance sheet of the
      Parent and its Subsidiaries as of the end of such year and the prior year in
      comparative form, and related statements of operations, shareholders’ equity,
      and cash flows for the Fiscal Year and the prior Fiscal Year in comparative
      form. The financial statements shall be in reasonable detail with appropriate
      notes and be prepared in accordance with GAAP. The consolidated annual financial
      statements shall be certified (without any qualification or exception) by
      independent certified public accountants of nationally recognized standing
      reasonably acceptable to the Administrative Agent. Such financial statements
      shall be accompanied by a report of such independent certified public
      accountants stating that, in the opinion of such accountants, such financial
      statements present fairly, in all material respects, the financial position,
      and
      the results of operations and the cash flows of the Parent and its Subsidiaries
      for the period then ended in conformity with GAAP, except for inconsistencies
      resulting from changes in accounting principles and methods agreed to by such
      accountants and specified in such report, and that, in the case of such
      financial statements, the examination by such accountants of such financial
      statements has been made in accordance with generally accepted auditing
      standards and accordingly included examining, on a test basis, evidence
      supporting the amounts and disclosures in the financial statements and assessing
      the accounting principles used and significant estimates made, as well as
      evaluating the overall financial statement presentation. Each financial
      statement provided under this subsection (a) shall be accompanied by a
      certificate signed by such accountants either stating that during the course
      of
      their examination nothing came to their attention which would cause them to
      believe that any event has occurred and is continuing which constitutes an
      Event
      of Default or Potential Default, or describing each such event. In addition
      to
      the annual financial statements, each Borrower shall, promptly upon receipt
      thereof, furnish to the Banks a copy of each other report submitted to its
      board
      of directors by its independent accountants in connection with any annual,
      interim or special audit made by them of the financial records of any Borrower.
      Delivery to the Administrative Agent and Banks of the Parent’s filed Form 10-K
      for the applicable Fiscal Quarter shall satisfy the foregoing
      requirement.

     

    (b)    Quarterly
      Statements.
      As soon
      as available and in any event within ninety (90) days after the end of each
      of
      the first three Fiscal Quarters of each Fiscal Year, the consolidated and
      consolidating balance sheet and related statements of operations, shareholders’
equity and cash flows of the Parent and its Subsidiaries for such period and
      for
      the period from the beginning of such fiscal year to the end of such Fiscal
      Quarter and a corresponding financial statement for the same period in the
      preceding Fiscal Year certified by the chief financial officer of the Parent
      as
      having been prepared in accordance with GAAP (subject to changes resulting
      from
      audits and year-end adjustments); provided, however, that if the independent
      certified public accountants issue a review report on the quarterly financial
      statements of any Borrower, the financial statements required by this subsection
      (b) shall be accompanied by a certificate signed by such accountants either
      stating that during the course of their examination nothing came to their
      attention which would cause them to believe that any event has occurred and
      is
      continuing which constitutes an Event of Default or Potential Default, or
      describing each such event and the remedial steps being taken by the Borrowers
      or any of them. Delivery to the Administrative Agent and Banks of the Parent’s
      filed Form 10-Q for the applicable Fiscal Year shall satisfy the foregoing
      requirement.

     

    (c)    Compliance
      Certificate
      and
      Quarterly Reports.
      At each
      time financial statements are delivered pursuant to Section 5.1(a) or Section
      5.1(b) hereof, (i) a Compliance Certificate, (ii) a quarterly inventory report
      in the form attached hereto as Exhibit I (“Quarterly
      Inventory Report”),
      and

    
      
        6

      

      
        
        

        
        

      

      
        
        
(iii)
        a
        residuals report in the form attached hereto as Exhibit J (“Residuals
        Report”),
        each
        dated as of the date of the related financial statements and signed by the
        chief
        executive officer, president, or chief financial officer of the
        Parent.

    

     

    (d)    No
      Default.
      At each
      time financial statements are delivered pursuant to Section 5.1(a) or Section
      5.1(b) hereof, a certificate signed by the chief executive officer, chief
      operating officer or chief financial officer of each Borrower certifying that,
      to the best of such officer’s knowledge, after due inquiry, no event has
      occurred and is continuing which constitutes an Event of Default or Potential
      Default, or describing each such event and the remedial steps being taken by
      the
      Borrowers or any of them.

     

    (e)    Budgets
      and Projections.
      As soon
      as available and in any event within one hundred twenty (120) days after the
      end
      of each fiscal year of the Borrowers, a detailed consolidated budget for the
      following fiscal year on a quarterly basis for the Borrowers (including a
      projected consolidated balance sheet of the Borrowers and their Subsidiaries
      as
      of the end of the following fiscal year, and the related consolidated statements
      of projected cash flow, projected changes in financial position and projected
      income), and, as soon as available, significant revisions, if any, of such
      budget and projections with respect to such fiscal year (collectively, the
      “Projections”),
      which
      Projections shall in each case be accompanied by a certificate of a responsible
      officer stating that such Projections are based upon reasonable estimates,
      information and assumptions and that such responsible officer has no reason
      to
      believe that such Projections are incorrect or misleading in any material
      respect.

     

    (f)    Collateral
      Field Audit.
      Provide
      a collateral field audit of the Borrowers prepared by a mutually acceptable
      firm
      at least once a year on the anniversary date of this Agreement.

     

    (g)    ERISA.
      All
      reports and forms filed with respect to all Plans, except as filed in the normal
      course of business and that would not result in an adverse action to be taken
      under ERISA, and details of related information of a Reportable Event, promptly
      following each filing.

     

    (h)    Material
      Changes.
      Notification to the Administrative Agent and to each Bank of any litigation,
      administrative proceeding, investigation, business development, or change in
      financial condition which would have a Material Adverse Effect, promptly
      following its discovery.

     

    (i)    Other
      Information.
      Promptly, upon request by the Administrative Agent from time to time (which
      may
      be on a monthly or other basis), each Borrower shall provide such other
      information and reports regarding its operations, business affairs, prospects
      and financial condition as the Agent or the Banks may reasonably
      request.

     

    (j)    Monthly
      Borrowing Base Certificate.
      No
      later than fifteen (15) days after the end of each calendar month, as of the
      last day of such calendar month, a Borrowing Base Certificate signed by the
      chief financial officer, treasurer or controller of the Parent.

     

    (k)    Monthly
      Accounts Receivable Aging Report. No
      later than thirty (30) days after the end of each calendar month for the first
      eleven (11) months of each Fiscal Year and no later than sixty (60) days after
      the end of each Fiscal Year, an accounts receivable aging report in the form
      attached hereto as Exhibit H (“Accounts
      Receivable Aging Report”)
      signed
      by the chief financial officer, treasurer or controller of the Parent. In the
      case of the first two calendar months of each Fiscal Quarter, the information
      contained in this report need not include Receivables related to Buy/Sell
      Contracts or AMC Receivables (less than or over 120 days) as referenced in
      Exhibit H hereto.

      
        
          7

          

          
          

        

        
          
          

          
          

        

        
          
          

        

      

    

    SCHEDULE
      2

    

    Applicable
      Margins and Commitment Fee

    

    Advances
      under the Facility shall carry an interest rate based upon the Borrowers’ ratio
      of Total Recourse Funded Debt to Earnings Before Interest, Taxes, Depreciation,
      and Amortization (“Total Recourse Funded Debt to EBITDA”), as outlined
      below:

    

    

    
      	
              Total
                Recourse Funded Debt/EBITDA

            	
              LIBOR
                +

            	
              ABR+

            
	 	
               

            	
            
	
              >2.5

            	
              200.0
                bps

            	
              25.0
                bps

            
	
               >
                1.5 < 2.5

            	
              175.0
                bps

            	
              0.0
                bps

            
	
              <
                1.5

            	
              150.0
                bps

            	
              0.0
                bps

            
	 	 	 
	 	 	 

    

    

    

    The
      Commitment Fee will be subject to a performance grid determined by the usage
      under the Facility based upon the following:

    

    Usage
      £
      33.33%%
      of the Facility = 65 bps

    Usage
      > 33.33% <
      66.66%
      of the Facility = 45 bps

    Usage
      > 66.66% of the Facility = 25 bps

    

    

    
8

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