exv10w1






Exhibit 10.1




 





 





CREDIT AGREEMENT




among




SYKES (BERMUDA) HOLDINGS LIMITED

as Borrower




THE LENDERS NAMED HEREIN

as Lenders




and




KEYBANK NATIONAL ASSOCIATION

as Lead Arranger, Sole Book Runner and Administrative Agent




 






dated as of

December 11, 2009




 






 





 





 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE I. DEFINITIONS
	 	 	1	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Accounting Terms
	 	 	15	 
	Section 1.3. Terms Generally
	 	 	15	 
	 
	 	 	 	 
	ARTICLE II. AMOUNT AND TERMS OF CREDIT
	 	 	15	 
	Section 2.1. Amount and Nature of Credit
	 	 	15	 
	Section 2.2. Interest
	 	 	16	 
	Section 2.3. Evidence of Indebtedness
	 	 	17	 
	Section 2.4. Notice of Credit Event; Funding of Interest Segments
	 	 	17	 
	Section 2.5. Payment on the Term Loan and Other Obligations
	 	 	18	 
	Section 2.6. Prepayment
	 	 	19	 
	Section 2.7. Payment of Fees
	 	 	19	 
	Section 2.8. Computation of Interest and Fees
	 	 	19	 
	Section 2.9. Mandatory Payments
	 	 	19	 
	 
	 	 	 	 
	ARTICLE III. ADDITIONAL PROVISIONS RELATING TO EURODOLLAR INTEREST SEGMENTS; INCREASED CAPITAL; TAXES
	 	 	20	 
	Section 3.1. Requirements of Law
	 	 	20	 
	Section 3.2. Taxes
	 	 	22	 
	Section 3.3. Funding Losses
	 	 	23	 
	Section 3.4. Eurodollar Rate Lending Unlawful; Inability to Determine Rate
	 	 	23	 
	Section 3.5. Discretion of Lenders as to Manner of Funding
	 	 	24	 
	 
	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT
	 	 	24	 
	Section 4.1. Conditions to Each Credit Event
	 	 	24	 
	Section 4.2. Conditions to the First Credit Event
	 	 	25	 
	 
	 	 	 	 
	ARTICLE V. COVENANTS
	 	 	27	 
	Section 5.1. Insurance
	 	 	27	 
	Section 5.2. Money Obligations
	 	 	27	 
	Section 5.3. Financial Statements and Information
	 	 	27	 
	Section 5.4. Financial Records
	 	 	28	 
	Section 5.5. Franchises; Change in Business
	 	 	28	 
	Section 5.6. ERISA and Non-U.S. Pension and Benefit Plan Compliance
	 	 	28	 
	Section 5.7. Financial Covenant-Minimum Cash Balance
	 	 	30	 
	Section 5.8. Borrowing
	 	 	30	 
	Section 5.9. Liens
	 	 	30	 
	Section 5.10. Regulations T, U and X
	 	 	31	 
	Section 5.11. Investments, Loans and Guaranties
	 	 	31	 
	Section 5.12. Merger and Sale of Assets
	 	 	32	 
	Section 5.13. Acquisitions
	 	 	33	 
	Section 5.14. Notice
	 	 	33	 
	Section 5.15. Restricted Payments
	 	 	33	 
	Section 5.16. Environmental Compliance
	 	 	33	 
	Section 5.17. Affiliate Transactions
	 	 	33	 
	Section 5.18. Use of Proceeds
	 	 	34	 






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TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	Section 5.19. Pledge of Stock or Other Ownership Interest
	 	 	34	 
	Section 5.20. Restrictive Agreements
	 	 	34	 
	Section 5.21. Other Covenants and Provisions
	 	 	34	 
	Section 5.22. Pari Passu Ranking
	 	 	35	 
	Section 5.23. Guaranty Under Material Indebtedness Agreement
	 	 	35	 
	Section 5.24. Amendment of Organizational Documents
	 	 	35	 
	Section 5.25. Further Assurances
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VI. REPRESENTATIONS AND WARRANTIES
	 	 	35	 
	Section 6.1. Corporate Existence; Subsidiaries; Foreign Qualification
	 	 	35	 
	Section 6.2. Corporate Authority
	 	 	36	 
	Section 6.3. Compliance with Laws and Contracts
	 	 	36	 
	Section 6.4. Litigation and Administrative Proceedings
	 	 	37	 
	Section 6.5. Title to Assets
	 	 	37	 
	Section 6.6. Liens and Security Interests
	 	 	37	 
	Section 6.7. Tax Returns
	 	 	37	 
	Section 6.8. Environmental Laws
	 	 	37	 
	Section 6.9. Continued Business
	 	 	38	 
	Section 6.10. Employee Benefits Plans
	 	 	38	 
	Section 6.11. Consents or Approvals
	 	 	39	 
	Section 6.12. Solvency
	 	 	39	 
	Section 6.13. Financial Statements
	 	 	39	 
	Section 6.14. Regulations
	 	 	39	 
	Section 6.15. Material Agreements
	 	 	40	 
	Section 6.16. Intellectual Property
	 	 	40	 
	Section 6.17. Insurance
	 	 	40	 
	Section 6.18. Accurate and Complete Statements
	 	 	40	 
	Section 6.19. Investment Company; Other Restrictions
	 	 	40	 
	Section 6.20. Defaults
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VII. EVENTS OF DEFAULT
	 	 	41	 
	Section 7.1. Payments
	 	 	41	 
	Section 7.2. Special Covenants
	 	 	41	 
	Section 7.3. Other Covenants
	 	 	41	 
	Section 7.4. Representations and Warranties
	 	 	41	 
	Section 7.5. Cross Default
	 	 	41	 
	Section 7.6. Default in Employee, Pension and Benefit Plan Compliance
	 	 	41	 
	Section 7.7. Change in Control
	 	 	41	 
	Section 7.8. Judgments
	 	 	42	 
	Section 7.9. Material Adverse Change
	 	 	42	 
	Section 7.10. Security
	 	 	42	 
	Section 7.11. Validity of Loan Documents
	 	 	42	 
	Section 7.12. Solvency
	 	 	42	 
	 
	 	 	 	 
	ARTICLE VIII. REMEDIES UPON DEFAULT
	 	 	43	 
	Section 8.1. Optional Defaults
	 	 	43	 
	Section 8.2. Automatic Defaults
	 	 	43	 






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TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	Section 8.3. Offsets
	 	 	43	 
	Section 8.4. Equalization Provisions
	 	 	44	 
	Section 8.5. Other Remedies
	 	 	44	 
	Section 8.6. Application of Proceeds
	 	 	44	 
	 
	 	 	 	 
	ARTICLE IX. THE AGENT
	 	 	46	 
	Section 9.1. Appointment and Authorization
	 	 	46	 
	Section 9.2. Note Holders
	 	 	46	 
	Section 9.3. Consultation With Counsel
	 	 	46	 
	Section 9.4. Documents
	 	 	46	 
	Section 9.5. Agent and Affiliates
	 	 	47	 
	Section 9.6. Knowledge or Notice of Default
	 	 	47	 
	Section 9.7. Action by Agent
	 	 	47	 
	Section 9.8. Release of Guarantor of Payment or Pledge of Stock
	 	 	47	 
	Section 9.9. Delegation of Duties
	 	 	48	 
	Section 9.10. Indemnification of Agent
	 	 	48	 
	Section 9.11. Successor Agent
	 	 	48	 
	Section 9.12. Agent May File Proofs of Claim
	 	 	48	 
	Section 9.13. No Reliance on Agent’s Customer Identification Program
	 	 	49	 
	 
	 	 	 	 
	ARTICLE X. MISCELLANEOUS
	 	 	49	 
	Section 10.1. Lenders’ Independent Investigation
	 	 	49	 
	Section 10.2. No Waiver; Cumulative Remedies
	 	 	50	 
	Section 10.3. Amendments, Waivers and Consents
	 	 	50	 
	Section 10.4. Notices
	 	 	51	 
	Section 10.5. Costs, Expenses and Taxes
	 	 	51	 
	Section 10.6. Indemnification
	 	 	52	 
	Section 10.7. Obligations Several; No Fiduciary Obligations
	 	 	52	 
	Section 10.8. Execution in Counterparts
	 	 	52	 
	Section 10.9. Binding Effect; Borrower’s Assignment
	 	 	52	 
	Section 10.10. Lender Assignments
	 	 	52	 
	Section 10.11. Sale of Participations
	 	 	54	 
	Section 10.12. Patriot Act Notice
	 	 	55	 
	Section 10.13. Severability of Provisions; Captions; Attachments
	 	 	55	 
	Section 10.14. Investment Purpose
	 	 	56	 
	Section 10.15. Entire Agreement
	 	 	56	 
	Section 10.16. General Limitation of Liability
	 	 	56	 
	Section 10.17. No Duty
	 	 	56	 
	Section 10.18. Legal Representation of Parties
	 	 	56	 
	Section 10.19. Currency
	 	 	57	 
	Section 10.20. Governing Law; Submission to Jurisdiction
	 	 	57	 
	Jury Trial Waiver
	Signature Page 1	 






iii









 






TABLE OF CONTENTS




	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 
	Exhibit A

	 	Form of Term Note	 	E-1
	Exhibit B

	 	Form of Notice of Interest Segment Selection	 	E-3
	Exhibit C

	 	Form of Compliance Certificate	 	E-5
	Exhibit D

	 	Form of Assignment and Acceptance Agreement	 	E-6
	 
	 	 
	Schedule 1

	 	Commitments of Lenders
	Schedule 2

	 	Guarantors of Payment
	Schedule 3

	 	Pledged Securities
	Schedule 5.8

	 	Indebtedness
	Schedule 5.9

	 	Liens
	Schedule 6.1

	 	Corporate Existence; Subsidiaries; Foreign Qualification
	Schedule 6.4

	 	Litigation and Administrative Proceedings
	Schedule 6.15

	 	Material Agreements






iv









 





     This CREDIT AGREEMENT (as the same may from time to time be amended, restated or otherwise
modified, this “Agreement”) is made effective as of the 11th day of December, 2009
among:




     (a) SYKES (BERMUDA) HOLDINGS LIMITED, a Bermuda exempted company (“Borrower”);




     (b) the lenders listed on Schedule 1 hereto and each other Eligible Transferee,
as hereinafter defined, that from time to time becomes a party hereto pursuant to Section
10.10 hereof (collectively, the “Lenders” and, individually, each a “Lender”); and




     (c) KEYBANK NATIONAL ASSOCIATION, a national banking association, as the lead arranger,
sole book runner and administrative agent for the Lenders under this Agreement (“Agent”).



WITNESSETH:




     WHEREAS, Borrower, Agent and the Lenders desire to contract for the establishment of credits
in the aggregate principal amounts hereinafter set forth, to be made available to Borrower upon the
terms and subject to the conditions hereinafter set forth;



     NOW, THEREFORE, it is mutually agreed as follows:



ARTICLE I. DEFINITIONS




     Section 1.1. Definitions. As used in this Agreement, the following terms shall have
the meanings set forth below:



     “Acquisition” means any transaction or series of related transactions for the purpose of or
resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets
of any Person (other than a Company), or any business or division of any Person (other than a
Company), (b) the acquisition of in excess of fifty percent (50%) of the outstanding capital stock
(or other equity interest) of any Person (other than a Company), or (c) the acquisition of another
Person (other than a Company) by a merger, amalgamation or consolidation or any other combination
with such Person.



     “Advantage” means any payment (whether made voluntarily or involuntarily, by offset of any
deposit or other indebtedness or otherwise) received by any Lender in respect of the Obligations if
such payment results in that Lender having less than its pro rata share (based upon its Commitment
Percentage) of the Obligations then outstanding.



     “Affiliate” means any Person, directly or indirectly, controlling, controlled by or under
common control with a Company and “control” (including the correlative meanings, the terms
“controlling”, “controlled by” and “under common control with”) means the power, directly or



 









 




indirectly, to direct or cause the direction of the management and policies of a Company, whether
through the ownership of voting securities, by contract or otherwise.




     “Agent” means that term as defined in the first paragraph hereof.



     “Agent Fee Letter” means the Agent Fee Letter between Borrower and Agent, dated as of the
Closing Date, as the same may from time to time be amended, restated or otherwise modified.



     “Agreement” means that term as defined in the first paragraph hereof.



     “Approved Depository” means a domestic or foreign commercial bank or United States branch of a
foreign bank licensed under the laws of the United States or a State thereof having (i) capital and
surplus in excess of Five Hundred Million Dollars ($500,000,000) and (ii) a senior unsecured long
term indebtedness rating from Standard & Poor’s of at least A- or the equivalent thereof, or from
Moody’s of at least A3, or the equivalent thereof, or, with respect to any investment or deposit in
a foreign bank in excess of One Million Dollars ($1,000,000), an equivalent rating from a
comparable foreign rating agency.



     “Assignment Agreement” means an Assignment and Acceptance Agreement in the form of the
attached Exhibit D.



     “Authorized Officer” means a Financial Officer, the Vice President and General Counsel, or
other individual authorized by a Financial Officer in writing (with a copy to Agent) to handle
certain administrative matters in connection with this Agreement.



     “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as now or
hereafter in effect, or any successor thereto, as hereafter amended.



     “Base Rate” means a rate per annum equal to the highest of (a) the Prime Rate, (b) one-half of
one percent (.50%) in excess of the Federal Funds Effective Rate, and (c) one hundred (100.00)
basis points in excess of the London Interbank Offered Rate for loans in Eurodollars with an
Interest Period of one month. Any change in the Base Rate shall be effective immediately from and
after such change in the Base Rate.



     “Base Rate Interest Segment” means a portion of the Term Loan described in Section 2.1 hereof,
that shall be denominated in Dollars and on which Borrower shall pay interest at a rate based on
the Derived Base Rate.



     “Borrower” means that term as defined in the first paragraph hereof.



     “Borrower Investment Policy” means the Investment Policy of Borrower in effect as of the
Closing Date, together with such modifications as approved from time to time by the Board of
Directors of Borrower.



2









 





     “Business Day” means a day that is not a Saturday, a Sunday, or a day on which national banks
are authorized or required to close in Cleveland, Ohio, and, in addition, if the applicable
Business Day relates to a Eurodollar Interest Segment, a day of the year on which dealings in
deposits are carried on in the London interbank Eurodollar market.



     “Capital Distribution” means a payment made, liability incurred or other consideration given
by a Company to any Person that is not a Company, (a) for the purchase, acquisition, redemption,
repurchase, payment or retirement of any capital stock or other equity interest of such Company, or
(b) as a dividend, return of capital or other distribution (other than any stock dividend, stock
split or other equity distribution payable only in capital stock or other equity of such Company)
in respect of such Company’s capital stock or other equity interest.



     “Capitalized Lease Obligations” means obligations of the Companies for the payment of rent for
any real or personal property under leases or agreements to lease that, in accordance with GAAP,
have been or should be capitalized on the books of the lessee and, for the purposes hereof, the
amount of any such obligation shall be the capitalized amount thereof determined in accordance with
GAAP.



     “Cash Equivalent Investments” means



     (a) securities issued, or directly and fully guaranteed or insured by, the United States of
America or any agency or instrumentality thereof (provided that the full faith and credit of the
United States of America is pledged in support thereof) having maturities of not more than one year
from the date of acquisition;



     (b) time deposits, demand deposits, certificates of deposit and bankers’ acceptances of an
Approved Depository, in each case with maturities of not more than one year from the date of
acquisition;



     (c) commercial paper issued by an Approved Depository or by the parent company of an Approved
Depository and commercial paper issued by, or guaranteed by, any industrial or financial company
with a short-term commercial paper rating of at least A-1 or the equivalent thereof by Standard &
Poor’s or at least P-1 or the equivalent thereof by Moody’s, or guaranteed by any industrial
company with a long term unsecured debt rating of at least A or A2, or the equivalent of each
thereof, from Standard & Poor’s or Moody’s, as the case may be, and in each case maturing within
one year after the date of acquisition;



     (d) investments in money market funds substantially all the assets of which are comprised of
securities of the types described in subparts (a) through (c) above, or investments in money market
funds of an investment management firm with assets in excess of Five Hundred Million Dollars
($500,000,000); and



     (e) investments in money market funds access to which is provided as part of “sweep” accounts
maintained with an Approved Depository.



3









 





     “Change in Control” means (a) the acquisition of, or, if earlier, the shareholder or director
approval of the acquisition of, ownership or voting control, directly or indirectly, beneficially
or of record, on or after the Closing Date, by any Person (other than John Sykes) or group (within
the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act of 1934, as then in effect),
of shares representing more than thirty percent (30%) of the aggregate ordinary Voting Power
represented by the issued and outstanding capital stock of Parent; (b) the occupation of a majority
of the seats (other than vacant seats) on the board of directors or other governing body of Parent
by Persons who were neither (i) nominated by the board of directors or other governing body of
Borrower nor (ii) appointed by directors so nominated; (c) the occurrence of a change in control,
or other term of similar import used therein, as defined in any Material Indebtedness Agreement;
(d) Parent shall cease to own, either directly or indirectly, one hundred percent (100%) of the
aggregate ordinary Voting Power represented by the issued and outstanding equity interests of
Borrower; or (e) Parent shall no longer be subject to the periodical and other reporting
requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as then in
effect.



     “Closing Date” means the effective date of this Agreement as set forth in the first paragraph
of this Agreement.



     “Closing Fee Letter” means the Closing Fee Letter between Borrower and Agent, dated as of the
Closing Date.



     “Code” means the Internal Revenue Code of 1986, as amended, together with the rules and
regulations promulgated thereunder.



     “Collateral” means the Pledged Securities and any and all other assets of the Companies that,
on or after the Closing Date, are pledged to Agent, for the benefit of the Lenders, to secure the
Secured Obligations.



     “Commitment Percentage” means, for each Lender, the percentage set forth opposite such
Lender’s name under the column headed “Commitment Percentage”, as listed in Schedule 1
hereto (taking into account any assignments pursuant to Section 10.10 hereof).



     “Companies” means Borrower and all Subsidiaries.



     “Company” means Borrower or a Subsidiary.



     “Compliance Certificate” means a Compliance Certificate in the form of the attached
Exhibit C.



     “Consolidated” means the resultant consolidation of the financial statements of Parent and its
Subsidiaries in accordance with GAAP, including principles of consolidation consistent with those
applied in preparation of the consolidated financial statements referred to in Section 6.13 hereof.



4









 





     “Consolidated Net Worth” means, at any date, the stockholders’ equity of Parent, determined as
of such date on a Consolidated basis and in accordance with GAAP.



     “Controlled Group” means a Company and each Person required to be aggregated with a Company
under Code Section 414(b), (c), (m) 

or (o).



     “Credit Event” means the making by the Lenders of the Term Loan, the selection of an Interest
Segment, the conversion by the Lenders of a Base Rate Interest Segment to a Eurodollar Interest
Segment, or the continuation by the Lenders of a Eurodollar Interest Segment after the end of the
applicable Interest Period.



     “Credit Party” means Parent, Borrower and any Subsidiary or other Affiliate that is a
Guarantor of Payment.



     “Default” means an event or condition that constitutes, or with the lapse of any applicable
grace period or the giving of notice or both would constitute, an Event of Default, and that has
not been waived by the Required Lenders (or, if required hereunder, all of the Lenders) in writing.



     “Default Rate” means (a) with respect to the Term Loan or any other Obligation, a rate per
annum equal to two percent (2%) in excess of the rate otherwise applicable thereto, and (b) with
respect to any other amount, if no rate is specified or available, a rate per annum equal to two
percent (2%) in excess of the Derived Base Rate from time to time in effect.



     “Derived Base Rate” means a rate per annum equal to two hundred fifty (250.00) basis points in
excess of the Base Rate.



     “Derived Eurodollar Rate” means a rate per annum equal to three hundred fifty (350.00) basis
points in excess of the Eurodollar Rate.



     “Dollar”
or the $ sign means lawful money of the United States of America.



     “Dormant Subsidiary” means a Company that (a) is not a Credit Party, (b) has aggregate assets
of less than Fifty Thousand Dollars ($50,000), and (c) has no direct or indirect Subsidiaries with
aggregate assets, for such Company and all such Subsidiaries, of more than Fifty Thousand Dollars
($50,000).



     “Eligible Transferee” means a commercial bank, financial institution or other “accredited
investor” (as defined in SEC Regulation D) that is not Borrower, Parent, a Subsidiary or an
Affiliate.



     “Environmental Laws” means all provisions of law (including the common law), statutes,
ordinances, codes, rules, guidelines, policies, procedures, orders-in-council, regulations,
permits, licenses, judgments, writs, injunctions, decrees, orders, awards and standards promulgated
by a Governmental Authority or by any court, agency, instrumentality, regulatory authority or



5









 




commission of any of the foregoing concerning environmental health or safety and protection of, or
regulation of the discharge of substances into, the environment.




     “Environmental Permits” means all permits, licenses, authorizations, certificates, approvals
or registrations required by any Governmental Authority under any Environmental Laws.



     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated pursuant thereto.



     “ERISA Event” means (a) the existence of a condition or event with respect to an ERISA Plan
that presents a risk of the imposition of an excise tax or any other liability on a Company or of
the imposition of a Lien on the assets of a Company; (b) the engagement by a Controlled Group
member in a non-exempt “prohibited transaction” (as defined under ERISA Section 406 or Code Section
4975) or a breach of a fiduciary duty under ERISA that could result in liability to a Company; (c)
the application by a Controlled Group member for a waiver from the minimum funding requirements of
Code Section 412 or ERISA Section 302 or a Controlled Group member is required to provide security
under Code Section 401(a)(29) or ERISA Section 307; (d) the occurrence of a Reportable Event with
respect to any Pension Plan as to which notice is required to be provided to the PBGC; (e) the
withdrawal by a Controlled Group member from a Multiemployer Plan in a “complete withdrawal” or a
“partial withdrawal” (as such terms are defined in ERISA Sections 4203 and 4205, respectively); (f)
the involvement of, or occurrence or existence of any event or condition that makes likely the
involvement of, a Multiemployer Plan in any reorganization under ERISA Section 4241; (g) the
failure of an ERISA Plan (and any related trust) that is intended to be qualified under Code
Sections 401 and 501 to be so qualified or the failure of any “cash or deferred arrangement” under
any such ERISA Plan to meet the requirements of Code Section 401(k); (h) the taking by the PBGC of
any steps to terminate a Pension Plan or appoint a trustee to administer a Pension Plan, or the
taking by a Controlled Group member of any steps to terminate a Pension Plan; (i) the failure by a
Controlled Group member or an ERISA Plan to satisfy any requirements of law applicable to an ERISA
Plan; (j) the commencement, existence or threatening of a claim, action, suit, audit or
investigation with respect to an ERISA Plan, other than a routine claim for benefits; or (k) any
incurrence by or any expectation of the incurrence by a Controlled Group member of any liability
for post-retirement benefits under any Welfare Plan, other than as required by ERISA Section 601,
et. seq. or Code Section 4980B.



     “ERISA Plan” means an “employee benefit plan” (within the meaning of ERISA Section 3(3)) that
a Controlled Group member at any time sponsors, maintains, contributes to, has liability with
respect to or has an obligation to contribute to such plan.



     “Eurocurrency Liabilities” shall have the meaning assigned to that term in Regulation D of the
Board of Governors of the Federal Reserve System, as in effect from time to time.



     “Eurodollar” means a Dollar denominated deposit in a bank or branch outside of the United
States.



6









 





     “Eurodollar Interest Segment” means a portion of the Term Loan described in Section 2.1
hereof, that shall be denominated in Dollars and on which Borrower shall pay interest at a rate
based upon the Derived Eurodollar Rate.



     “Eurodollar Rate” means, with respect to a Eurodollar Interest Segment, for any Interest
Period, a rate per annum equal to the quotient obtained (rounded upwards, if necessary, to the
nearest 1/16th of 1%) by dividing (a) the rate of interest, determined by Agent in
accordance with its usual procedures (which determination shall be conclusive absent manifest
error) as of approximately 11:00 A.M. (London time) two Business Days prior to the beginning of
such Interest Period pertaining to such Eurodollar Interest Segment, as listed on British Bankers
Association Interest Rate LIBOR 01 or 02 as provided by Reuters or Bloomberg (or, if for any reason
such rate is unavailable from Reuters or Bloomberg, from any other similar company or service that
provides rate quotations comparable to those currently provided by Reuters or Bloomberg) as the
rate in the London interbank market for Dollar deposits in immediately available funds with a
maturity comparable to such Interest Period, provided that, in the event that such rate quotation
is not available for any reason, then the Eurodollar Rate shall be the average (rounded upward to
the nearest 1/16th of 1%) of the per annum rates at which deposits in immediately available funds
in Dollars for the relevant Interest Period and in the amount of the Eurodollar Interest Segment to
be disbursed or to remain outstanding during such Interest Period, as the case may be, are offered
to Agent (or an affiliate of Agent, in Agent’s discretion) by prime banks in any Eurodollar market
reasonably selected by Agent, determined as of 11:00 A.M. (London time) (or as soon thereafter as
practicable), two Business Days prior to the beginning of the relevant Interest Period pertaining
to such Eurodollar Interest Segment; by (b) 1.00 minus the Reserve Percentage.



     “Event of Default” means an event or condition that shall constitute an event of default as
defined in Article VII hereof.



     “Excluded Taxes” means, in the case of Agent and each Lender, taxes imposed on or measured by
its overall net income or branch profits, and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which Agent or
such Lender, as the case may be, is organized or in which its principal office is located, or, in
the case of any Lender, in which its applicable lending office is located.



     “Federal Funds Effective Rate” means, for any day, the rate per annum (rounded upward to the
nearest one one-hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve Bank of
New York (or any successor) on such day as being the weighted average of the rates on overnight
federal funds transactions arranged by federal funds brokers on the previous trading day, as
computed and announced by such Federal Reserve Bank (or any successor) in substantially the same
manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the
“Federal Funds Effective Rate” as of the Closing Date.



     “Financial Officer” means any of the following officers: chief executive officer, president,
chief financial officer, treasurer or controller. Unless otherwise qualified, all references to a
Financial Officer in this Agreement shall refer to a Financial Officer of Borrower.



7









 





     “GAAP” means generally accepted accounting principles in the United States as then in effect,
which shall include the official interpretations thereof by the Financial Accounting Standards
Board, applied on a basis consistent with the past accounting practices and procedures of Borrower.



     “Governmental Authority” means any nation or government, any state, province or territory or
other political subdivision thereof, any governmental agency, department, authority,
instrumentality, regulatory body, court, central bank or other governmental entity exercising
executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining
to government, any securities exchange and any self-regulatory organization exercising such
functions.



     “Guarantor” means a Person that shall have pledged its credit or property in any manner for
the payment or other performance of the indebtedness, contract or other obligation of another and
includes (without limitation) any guarantor (whether of payment or of collection), surety,
co-maker, endorser or Person that shall have agreed conditionally or otherwise to make any
purchase, loan or investment in order thereby to enable another to prevent or correct a default of
any kind.



     “Guarantor of Payment” means Parent and each of the Companies designated a “Guarantor of
Payment” on Schedule 2 hereto, each of which is executing and delivering a Guaranty of
Payment on the Closing Date, and any other Person that shall deliver a Guaranty of Payment to Agent
subsequent to the Closing Date.



     “Guaranty of Payment” means each Guaranty of Payment executed and delivered on or after the
Closing Date in connection with this Agreement by the Guarantors of Payment, as the same may from
time to time be amended, restated or otherwise modified.



     “Hedge Agreement” means any (a) hedge agreement, interest rate swap, cap, collar or floor
agreement, or other interest rate management device entered into by a Company with any Person in
connection with any Indebtedness of such Company, or (b) currency swap agreement, forward currency
purchase agreement or similar arrangement or agreement designed to protect against fluctuations in
currency exchange rates entered into by a Company.



     “Indebtedness” means, for any Company, without duplication, (a) all obligations to repay
borrowed money, direct or indirect, incurred, assumed, or guaranteed, (b) all obligations in
respect of the deferred purchase price of property or services (other than trade accounts payable
in the ordinary course of business), (c) all obligations under conditional sales or other title
retention agreements, (d) all obligations (contingent or otherwise) under any letter of credit or
banker’s acceptance, (e) all net obligations under any currency swap agreement, interest rate swap,
cap, collar or floor agreement or other interest rate management device or any Hedge
Agreement, (f) all synthetic leases, (g) all Capitalized Lease Obligations, (h) all obligations of
such Company with respect to asset securitization financing programs, (i) all obligations to
advance funds to, or to purchase assets, property or services from, any other Person in order to
maintain the financial condition of such Person, (j) all indebtedness of the types referred to in
subparts (a) through (i) above of any partnership or joint venture (other than a joint venture that



8









 




is itself a corporation or limited liability company) in which such Company is a general partner or
joint venturer, unless such indebtedness is expressly made non-recourse to such Company, (k) any
other transaction (including forward sale or purchase agreements) having the commercial effect of a
borrowing of money entered into by such Company to finance its operations or capital requirements,
and (l) any guaranty of any obligation described in subparts (a) through (k) hereof.




     “Interest Adjustment Date” means the last day of each Interest Period.



     “Interest Period” means, with respect to a Eurodollar Interest Segment, the period commencing
on the date such Eurodollar Interest Segment is made and ending on the last day of such period, as
selected by Borrower pursuant to the provisions hereof, and, thereafter (unless, such Eurodollar
Interest Segment is converted to a Base Rate Interest Segment), each subsequent period commencing
on the last day of the immediately preceding Interest Period and ending on the last day of such
period, as selected by Borrower pursuant to the provisions hereof. The duration of each Interest
Period for a Eurodollar Interest Segment shall be one month, two months or three months, in each
case as Borrower may select upon notice, as set forth in Section 2.4 hereof; provided that if
Borrower shall fail to so select the duration of any Interest Period for a Eurodollar Interest
Segment at least three Business Days prior to the Interest Adjustment Date applicable to such
Eurodollar Interest Segment, Borrower shall be deemed to have converted such Eurodollar Interest
Segment to a Base Rate Interest Segment at the end of the then current Interest Period.



     “Interest Segment” means a Base Rate Interest Segment or a Eurodollar Interest Segment.



     “KeyBank” means KeyBank National Association, and its successors and assigns.



     “Lender” means that term as defined in the first paragraph hereof.



     “Lien” means any mortgage, deed of trust, security interest, lien (statutory or other),
charge, assignment, hypothecation, encumbrance on, pledge or deposit of, or conditional sale, sale
with a right of redemption or other title retention agreement and any capitalized lease with
respect to any property (real or personal) or asset.



     “Loan” means the Term Loan made to Borrower by the Lenders in accordance with Section 2.1
hereof.



     “Loan Documents” means, collectively, this Agreement, each Note, each Guaranty of Payment,
each Pledge Agreement, the Agent Fee Letter and the Closing Fee Letter, as any of the foregoing may
from time to time be amended, restated or otherwise modified or replaced, and any other document
delivered pursuant thereto.



     “Mandatory Prepayment” means that term as defined in Section 2.9(a) hereof.



     “Material Adverse Effect” means a material adverse effect on (a) the business, operations,
property, condition (financial or otherwise) or prospects of Borrower or Parent, (b) the business,
operations, property, condition (financial or otherwise) or prospects of the



9









 




Companies taken as a
whole, or of Parent and its Subsidiaries taken as a whole, or (c) the validity or enforceability of
this Agreement or any of the other Loan Documents or the rights and remedies of Agent or the
Lenders hereunder or thereunder.




     “Material Indebtedness Agreement” means any debt instrument, capital lease, guaranty,
contract, commitment, agreement or other arrangement evidencing or entered into in connection with
any Indebtedness of any Company or the Companies equal to or in excess of the amount of Five
Million Dollars ($5,000,000).



     “Material Recovery Determination Notice” means that term as defined in Section 2.9(a) hereof.



     “Material Recovery Event” means (a) any casualty loss in respect of assets of a Company
covered by casualty insurance, and (b) any compulsory transfer or taking under threat of compulsory
transfer of any asset of a Company by any Governmental Authority; provided that, in the case of
either subpart (a) or (b), the proceeds received by the Companies from such loss, transfer or
taking exceeds One Million Dollars ($1,000,000).



     “Maximum Amount” means, for each Lender, the amount set forth opposite such Lender’s name
under the column headed “Maximum Amount” as set forth on Schedule 1 hereto, subject to
assignments of interests pursuant to Section 10.10 hereof.



     “Moody’s” means Moody’s Investors Service, Inc., and any successor to such company.



     “Multiemployer Plan” means a Pension Plan that is subject to the requirements of Subtitle E of
Title IV of ERISA.



     “Non-Consenting Lender” means that term as defined in Section 10.3(c) hereof.



     “Non-U.S. Benefit Plan” means each material plan, fund, program or policy established under
the law of a jurisdiction other than the United States (or a state or local government thereof),
whether formal or informal, funded or unfunded, insured or uninsured, providing employee benefits,
including medical, hospital care, dental, sickness, accident, disability, life insurance, pension,
retirement or savings benefits, under which one or more Companies have any liability with respect
to any employee or former employee, but excluding any Non-U.S. Pension Plan.



     “Non-U.S. Lender” means that term as defined in Section 3.2(d) hereof.



     “Non-U.S. Pension Plan” means a pension plan required to be registered under the law of a
jurisdiction other than the United States (or a state or local government thereof), that is
maintained or contributed to by one or more Companies for their employees or former employees.



     “Non-U.S. Subsidiary” means a Subsidiary that is not a U.S. Subsidiary.



10









 





     “Note” means a Term Note, or any other promissory note delivered pursuant to this Agreement.



     “Notice of Interest Segment Selection” means a Notice of Interest Segment Selection in the
form of the attached Exhibit B.



     “Obligations” means, collectively, (a) all Indebtedness and other obligations now owing or
hereafter incurred by Borrower to Agent or any Lender (or any affiliate thereof) pursuant to this
Agreement and the other Loan Documents, and includes the principal of and interest on the Term
Loan; (b) each extension, renewal, consolidation or refinancing of any of the foregoing, in whole
or in part; (c) all fees, and any prepayment fees, payable pursuant to this Agreement or any other
Loan Document; (d) every other liability, now or hereafter owing to Agent or any Lender by any
Company pursuant to this Agreement or any other Loan Document; and (e) all Related Expenses.



     “Organizational Documents” means, with respect to any Person (other than an individual), such
Person’s Articles (Certificate) of Incorporation, operating agreement or equivalent formation
documents, and Regulations (Bylaws), or equivalent governing documents, and any amendments to any
of the foregoing.



     “Other Taxes” means any and all present or future stamp or documentary taxes or any other
excise, ad valorem or property taxes, goods and services taxes, harmonized sales taxes and other
sales taxes, use taxes, value added taxes, charges or similar taxes or levies arising from any
payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect
to, this Agreement or any other Loan Document.



     “Parent” means Sykes Enterprises, Incorporated, a Florida corporation.



     “Parent Credit Agreement” shall mean that certain Credit Agreement, among Parent, the lenders
party thereto, and KeyBank National Association, as the administrative agent, as the same may from
time to time be amended, restated or otherwise modified or replaced.



     “Participant” means that term as defined in Section 10.11 hereof.



     “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, USA Patriot Act, Title III of Pub. L.
107-56, signed into law October 26, 2001, as amended from time to time.



     “PBGC” means the Pension Benefit Guaranty Corporation, and its successor.



     “Pension Plan” means an ERISA Plan that is a “pension plan” (within the meaning of ERISA
Section 3(2)).



     “Permitted Investment” means an investment of a Company in the stock (or other debt or equity
instruments) of a Person (other than a Company), so long as the aggregate amount of all



11









 




such
investments of all Companies does not exceed, at any time, an aggregate amount of One Million
Dollars ($1,000,000).




     “Person” means any individual, sole proprietorship, partnership, joint venture, unincorporated
organization, corporation, limited liability company, unlimited liability company, institution,
trust, estate, Governmental Authority or any other entity.



     “Pledge Agreement” means each of the Pledge Agreements, relating to the Pledged Securities,
executed and delivered by Borrower in favor of Agent, for the benefit of the Lenders, dated as of
the Closing Date, and any other Pledge Agreement executed by any other Subsidiary on or after the
Closing Date, as any of the foregoing may from time to time be amended, restated or otherwise
modified.



     “Pledged Securities” means (a) sixty-five percent (65%) of the voting shares of capital stock
or other voting equity interests of each existing or future first-tier Subsidiary of Borrower, and
(b) one hundred percent (100%) of all non-voting shares of capital stock or other non-voting equity
interests of each existing or future first-tier Subsidiary of Borrower. (Schedule 3 hereto
lists, as of the Closing Date, all of the Pledged Securities.)



     “Prime Rate” means the interest rate established from time to time by Agent as Agent’s prime
rate, whether or not such rate shall be publicly announced; the Prime Rate may not be the lowest
interest rate charged by Agent for commercial or other extensions of credit. Each change in the
Prime Rate shall be effective immediately from and after such change.



     “Register” means that term as described in Section 10.10(i) hereof.



     “Regularly Scheduled Payment Date” means the last day of each March, June, September and
December of each year.



     “Related Expenses” means any and all costs, liabilities and expenses (including, without
limitation, losses, damages, penalties, claims, actions, attorneys’ fees, legal expenses,
judgments, suits and disbursements) (a) incurred by Agent, or imposed upon or asserted against
Agent or any Lender, in any attempt by Agent and the Lenders to (i) obtain, preserve, perfect or
enforce any Loan Document or any security interest evidenced by any Loan Document; (ii) obtain
payment, performance or observance of any and all of the Obligations; or (iii) after the occurrence
of an Event of Default, maintain, insure, audit, collect, preserve, repossess or dispose of any of
the Collateral, including, without limitation, costs and expenses for appraisals, assessments and
audits of any Company or any such Collateral; or (b) incidental or related to
subpart (a) above, including, without limitation, interest thereupon from the date incurred,
imposed or asserted until paid at the Default Rate.



     “Related Writing” means each Loan Document and any other assignment, mortgage, security
agreement, guaranty agreement, subordination agreement, financial statement, audit report or other
writing furnished by any Credit Party, or any of its officers, to Agent or the Lenders pursuant to
or otherwise in connection with this Agreement.



12









 





     “Reportable Event” means a reportable event as that term is defined in Title IV of ERISA,
except actions of general applicability by the Secretary of Labor under Section 110 of such Act.



     “Required Lenders” means the holders of at least fifty-one percent (51%), based upon each
Lender’s Commitment Percentages, of the principal outstanding under the Term Loan; provided that,
if there shall be two or more Lenders, Required Lenders shall constitute at least two Lenders.



     “Requirement of Law” means, as to any Person, any law, treaty, rule or regulation or
determination or policy statement or interpretation of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person or any of its
property.



     “Reserve Percentage” means for any day that percentage (expressed as a decimal) that is in
effect on such day, as prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement (including, without limitation, all
basic, supplemental, marginal and other reserves and taking into account any transitional
adjustments or other scheduled changes in reserve requirements) for a member bank of the Federal
Reserve System in Cleveland, Ohio, in respect of Eurocurrency Liabilities. The Eurodollar Rate
shall be adjusted automatically on and as of the effective date of any change in the Reserve
Percentage.



     “Restricted Payment” means, with respect to any Company, (a) any Capital Distribution, (b) any
amount paid by such Company in repayment, redemption, retirement or repurchase, directly or
indirectly, of any Subordinated Indebtedness, or (c) any amount paid by such Company in respect of
any management, consulting or other similar arrangement with any equity holder (other than a
Company) of a Company or Affiliate in excess of the aggregate amount of One Hundred Thousand
Dollars ($100,000) in any fiscal year.



     “SEC” means the United States Securities and Exchange Commission, or any governmental body or
agency succeeding to any of its principal functions.



     “Secured Obligations” means, collectively, (a) the Obligations, and (b) all obligations and
liabilities of the Companies owing to Lenders under Hedge Agreements.



     “Standard & Poor’s” means Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc.,
and any successor to such company.



     “Subordinated” means, as applied to Indebtedness, Indebtedness that shall have been
subordinated (by written terms or written agreement being, in either case, in form and substance
satisfactory to Agent and the Required Lenders) in favor of the prior payment in full of the
Obligations.



     “Subsidiary” means, with respect to any Person, (a) a corporation more than fifty percent
(50%) of the Voting Power of which is owned, directly or indirectly, by such Person or by one or



13









 




more other subsidiaries of such Person or by such Person and one or more subsidiaries of such
Person, (b) a partnership, limited liability company or unlimited liability company of which such
Person, one or more other subsidiaries of such Person or such Person and one or more subsidiaries
of such Person, directly or indirectly, is a general partner or managing member, as the case may
be, or otherwise has an ownership interest greater than fifty percent (50%) of all of the ownership
interests in such partnership, limited liability company or unlimited liability company, or (c) any
other Person (other than a corporation, partnership, limited liability company or unlimited
liability company) in which such Person, one or more other subsidiaries of such Person or such
Person and one or more subsidiaries of such Person, directly or indirectly, has at least a majority
interest in the Voting Power or the power to elect or direct the election of a majority of
directors or other governing body of such Person. Unless the context otherwise requires,
Subsidiary herein shall be a reference to a Subsidiary of Borrower.




     “Taxes” means any and all present or future taxes of any kind, including but not limited to,
levies, imposts, duties, surtaxes, charges, fees, deductions or withholdings now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority (together with any
interest, penalties, fines, additions to taxes or similar liabilities with respect thereto) other
than Excluded Taxes.



     “Term Loan” means the Term Loan made to Borrower by the Lenders pursuant to the Term Loan
Commitment, in accordance with Section 2.1 hereof.



     “Term Loan Commitment” means the obligation hereunder of each of the Lenders to participate in
the making of the Term Loan in the original principal amount of Seventy-Five Million Dollars
($75,000,000), with each Lender’s obligation to participate therein being in the amount set forth
opposite such Lender’s name under the column headed “Term Loan Commitment Amount” as set forth on
Schedule 1 hereto, subject to assignments of interest pursuant to Section 10.10 hereof.



     “Term Note” means a Term Note, in the form of the attached Exhibit A, executed and
delivered pursuant to Section 2.3 hereof.



     “U.C.C. Financing Statement” means a financing statement filed or to be filed in accordance
with the Uniform Commercial Code, as in effect from time to time, in the relevant state or states.



     “U.S. Subsidiary” means a Subsidiary of Parent that is organized under the laws of the United
States, any State thereof or the District of Columbia.



     “Voting Power” means, with respect to any Person, the exclusive ability to control, through
the ownership of shares of capital stock, partnership interests, membership interests or otherwise,
the election of members of the board of directors or other similar governing body of such Person.
The holding of a designated percentage of Voting Power of a Person means the ownership of shares of
capital stock, partnership interests, membership interests or other interests of such Person
sufficient to control exclusively the election of that percentage of the members of the board of
directors or similar governing body of such Person.



14









 





     “Welfare Plan” means an ERISA Plan that is a “welfare plan” within the meaning of ERISA
Section 3(l).



     Section 1.2. Accounting Terms. Any accounting term not specifically defined in this
Article I shall have the meaning ascribed thereto by GAAP. In the event that any “Accounting
Change” (as defined below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then Borrower, Agent and
the Required Lenders agree to enter into negotiations in order to amend such provisions of this
Agreement so as to equitably reflect such Accounting Changes with the desired result that the
criteria for evaluating the financial condition of Borrower shall be the same after such Accounting
Changes as if such Accounting Changes had not been made. Until such time as such an amendment
shall have been executed and delivered by Borrower, Agent and the Required Lenders, all financial
covenants, standards and terms in this Agreement shall continue to be calculated and construed as
if such Accounting Changes had not occurred. “Accounting Changes” refers to changes in accounting
principles required by the promulgation of any rule, regulation, pronouncement or opinion by the
Financial Accounting Standards Board of the American Institute of Certified Public Accountants or,
if applicable, the SEC (or successors thereto or agencies with similar functions).



     Section 1.3. Terms Generally. The foregoing definitions shall be applicable to the
singular and plural forms of the foregoing defined terms.



ARTICLE II. AMOUNT AND TERMS OF CREDIT




     Section 2.1. Amount and Nature of Credit.



     (a) Subject to the terms and conditions of this Agreement, the Lenders, to the extent
hereinafter provided, shall make the Term Loan to Borrower on the Closing Date in the amount of the
Term Loan Commitment.



     (b) Each Lender, for itself and not one for any other, agrees to make the Term Loan on such
basis that:




     (i) the aggregate outstanding principal amount of the portion of the Term Loan made by
such Lender shall not be in excess of the Maximum Amount for such Lender; and




     (ii) the aggregate outstanding principal amount of the portion of the Term Loan made by
such Lender shall represent that percentage of the aggregate principal amount then
outstanding on the Term Loan that shall be such Lender’s Commitment Percentage.


The Term Loan shall be made pro rata according to the respective Commitment Percentages of the
Lenders.




15









 








     (c) The Term Loan shall be payable in full on March 31, 2010. Borrower shall notify Agent, in
accordance with the notice provisions of Section 2.4 hereof, whether the Term Loan will be
comprised of a Base Rate Interest Segment or one or more Eurodollar Interest Segments. The Term
Loan may be a mixture of a Base Rate Interest Segment and Eurodollar Interest Segments.



     Section 2.2. Interest.



     (a) Term Loan.




     (i) Base Rate Interest Segment. With respect to any portion of the Term Loan
that is a Base Rate Interest Segment, Borrower shall pay interest on the unpaid principal
amount thereof outstanding from time to time from the date thereof until paid, commencing
December 31, 2009, and continuing on each Regularly Scheduled Payment Date thereafter and at
the maturity thereof, at the Derived Base Rate from time to time in effect.




     (ii) Eurodollar Interest Segments. With respect to any portion of the Term
Loan that is a Eurodollar Interest Segment, Borrower shall pay interest on the unpaid
principal amount of such Eurodollar Interest Segment outstanding from time to time, fixed in
advance on the first day of the Interest Period applicable thereto through the last day of
the Interest Period applicable thereto, at the Derived Eurodollar Rate. Interest on such
Eurodollar Interest Segment shall be payable on each Interest Adjustment Date with respect
to an Interest Period (provided that if an Interest Period shall exceed three months, the
interest must be paid every three months, commencing three months from the beginning of such
Interest Period).



     (b) Default Rate. Anything herein to the contrary notwithstanding, if an Event of
Default shall occur, upon the election of Agent or the Required Lenders (i) the principal of the
Term Loan and the unpaid interest thereon shall bear interest, until paid, at the Default Rate, and
(ii) in the case of any other amount not paid when due from Borrower hereunder or under any other
Loan Document, such amount shall bear interest at the Default Rate; provided that, during an Event
of Default under Section 7.12 hereof, the applicable Default Rate shall apply without any election
or action on the part of Agent or any Lender.



     (c) Limitation on Interest.




     (i) Generally. In no event shall the rate of interest hereunder exceed the
maximum rate allowable by law.




     (ii) Foreign Jurisdiction Interest. If any provision of this Agreement or any
other Loan Document would obligate Borrower to make any payment of interest or other amount
payable to (including for the account of) any Lender in an amount, or calculated at a rate,
that would be prohibited by law or would result in a receipt by such Lender of interest at a
criminal rate then, notwithstanding such provision, such amount or rate shall



16









 






be deemed to
have been adjusted with retroactive effect to the maximum amount or rate of interest, as the
case may be, as would not be so prohibited by law or so result in a receipt by such Lender
of interest at a criminal rate, such adjustment to be effected, to the extent necessary, as
follows: (A) first, by reducing the amount or rate of interest required to be paid to such
Lender under this Article II; and (B) thereafter, by reducing any fees, commissions,
premiums and other amounts required to be paid to such Lender that would constitute interest
for purposes of the applicable statute. Notwithstanding the foregoing, and after giving
effect to all adjustments contemplated thereby, if a Lender shall have received an amount in
excess of the maximum amount permitted by such statute, then the Lender shall pay an amount
equal to such excess to Borrower. Any amount or rate of interest referred to in this
Article II with respect to the foreign extensions of credit shall be determined in
accordance with generally accepted actuarial practices and principles as an effective annual
rate of interest over the term that such extensions of credit remain outstanding on the
assumption that any charges, fees or expenses that fall within the meaning of “interest”
shall, if they relate to a specific period of time, be pro-rated over that period of time
and otherwise be pro-rated over the period from the Closing Date to the scheduled maturity
date of the Term Loan and, in the event of a dispute, a certificate of an actuary appointed
by Agent shall be conclusive for the purposes of such determination.



     Section 2.3. Evidence of Indebtedness. Upon the request of a Lender, to evidence the
obligation of Borrower to repay the portion of the Term Loan made by such Lender and to pay
interest thereon, Borrower shall execute a Term Note, payable to the order of such Lender in the
principal amount of its Commitment Percentage of the Term Loan Commitment; provided that the
failure of such Lender to request a Term Note shall in no way detract from Borrower’s obligations
to such Lender hereunder.



     Section 2.4. Notice of Credit Event; Funding of Interest Segments.



     (a) Notice of Credit Event. Borrower, through an Authorized Officer, shall provide to
Agent a Notice of Interest Segment Selection prior to (i) 11:00 A.M. (Eastern time) on the proposed
date of selection of, or conversion of an Interest Segment to, a Base Rate Interest Segment, and
(ii) 11:00 A.M. (Eastern time) three Business Days prior to the proposed date of selection of,
continuation of, or conversion of an Interest Segment to, a Eurodollar Interest Segment.



     (b) Conversion and Continuation of Interest Segments.




     (i) At the request of Borrower to Agent, subject to the notice and other provisions of
this Section 2.4, the Lenders shall convert a Base Rate Interest Segment to one or more
Eurodollar Interest Segments at any time and shall convert a Eurodollar Interest Segment to
a Base Rate Interest Segment on any Interest Adjustment Date applicable thereto.




     (ii) At the request of Borrower to Agent, subject to the notice and other provisions of
this Section 2.4, the Lenders shall continue one or more Eurodollar Interest



17









 






Segments, as of
the end of the applicable Interest Period, as a new Eurodollar Interest Segments with a new
Interest Period.



     (c) Minimum Amount. Each request for a Eurodollar Interest Segment shall be in an
amount of not less than One Million Dollars ($1,000,000), increased by increments of One Million
Dollars ($1,000,000).



     (d) Interest Periods. Borrower shall not request that Eurodollar Interest Segments be
outstanding for more than four different Interest Periods at the same time.



     Section 2.5. Payment on the Term Loan and Other Obligations.



     (a) Payments Generally. Each payment made hereunder by a Credit Party shall be made
without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever.



     (b) Payments in Dollars. All payments (including prepayments) to any Lender of the
principal of or interest on the Term Loan or other payment, including but not limited to principal,
interest, fees or any other amount owed by Borrower under this Agreement, shall be made in Dollars.
All payments described in this subsection (b) shall be remitted to Agent, at the address of Agent
for notices referred to in Section 10.4 hereof for the account of the Lenders not later than 11:00
A.M. (Eastern time) on the due date thereof in same day funds. Any such payments received by Agent
after 11:00 A.M. (Eastern time) shall be deemed to have been made and received on the next Business
Day.



     (c) Payments to Lenders. Upon Agent’s receipt of payments hereunder, Agent shall
immediately distribute to each Lender its ratable shares, if any, of the amount of principal,
interest, and any fees received by Agent for the account of such Lender. Payments received by
Agent in Dollars shall be delivered to the Lenders in Dollars in immediately available funds. Each
Lender shall record any principal, interest or other payment, the principal amounts of Base Rate
Interest Segments and Eurodollar Interest Segments, all prepayments and the applicable dates,
including Interest Periods, with respect to its portion of the Term Loan made, and payments
received by such Lender, by such method as such Lender may generally employ; provided, however,
that failure to make any such entry shall in no way detract from the obligations of Borrower under
this Agreement or any Note. The aggregate unpaid amount of the Term Loan, types of Interest
Segments, Interest Periods and similar information with respect to the Term Loan set forth on the
records of Agent shall be rebuttably presumptive evidence with respect to such information,
including the amounts of principal and interest owing by Borrower to each Lender.



     (d) Timing of Payments. Whenever any payment to be made hereunder, including, without
limitation, any payment to be made on the Term Loan, shall be stated to be due on a day that is not
a Business Day, such payment shall be made on the next Business Day and such extension of time
shall in each case be included in the computation of the interest payable on the Term Loan;
provided that, with respect to a Eurodollar Interest Segment, if the next Business



18









 




Day shall fall
in the succeeding calendar month, such payment shall be made on the preceding Business Day and the
relevant Interest Period shall be adjusted accordingly.




     Section 2.6. Prepayment.



     (a) Right to Prepay. Borrower shall have the right at any time or from time to time
to prepay, on a pro rata basis for all of the Lenders, all or any part of the principal amount of
the Term Loan. Such payment shall include interest accrued on the amount so prepaid to the date of
such prepayment and any amount payable under Article III hereof with respect to the amount being
prepaid. Prepayments of Base Rate Interest Segments shall be without any premium or penalty. Each
prepayment of the Term Loan shall be applied to the principal installments thereof in the inverse
order of their respective maturities.



     (b) Notice of Prepayment. Borrower shall give Agent irrevocable written notice of
prepayment of a Base Rate Interest Segment by no later than 11:00 A.M. (Eastern time) on the
Business Day on which such prepayment is to be made and written notice of the prepayment of any
Eurodollar Interest Segment not later than 1:00 P.M. (Eastern time) three Business Days before the
Business Day on which such prepayment is to be made.



     (c) Minimum Amount. Each prepayment of a Eurodollar Interest Segment shall be in the
principal amount of not less than the lesser of One Million Dollars ($1,000,000), or the principal
amount of such Interest Segment, except in the case of a mandatory payment pursuant to Section 2.9
or Article III hereof.



     Section 2.7. Payment of Fees. Borrower shall pay to Agent, for its sole benefit, the
fees set forth in the Agent Fee Letter.



     Section 2.8. Computation of Interest and Fees. With the exception of Base Rate
Interest Segments, interest on the Term Loan, Related Expenses and any fees and charges hereunder
shall be computed on the basis of a year having three hundred sixty (360) days and calculated for
the actual number of days elapsed. With respect to Base Rate Interest Segments, interest shall be
computed on the basis of a year having three hundred sixty-five (365) days or three hundred
sixty-six (366) days, as the case may be, and calculated for the actual number of days elapsed.



     Section 2.9. Mandatory Payments.



     (a) Mandatory Prepayments. Borrower shall make Mandatory Prepayments (each a
“Mandatory Prepayment”) in accordance with the following provisions:




     (i) Additional Indebtedness. If, at any time, the Companies shall incur
Indebtedness for borrowed money (including Capitalized Lease Obligations and letters of
credit) other than Indebtedness permitted pursuant to Section 5.8(a) through (i) hereof
(which other Indebtedness shall not be incurred without the prior written consent of Agent
and the Required Lenders), Borrower shall make a Mandatory Prepayment, on the date that such
Indebtedness is incurred, in an amount equal to one hundred percent (100%) of the net cash
proceeds of such Indebtedness.



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     (ii) Sale of Assets. Upon the sale or other disposition of any assets by a
Company (permitted pursuant to Section 5.12 hereof) to any Person other than to a Credit
Party or in the ordinary course of business, and to the extent the proceeds of such sale or
other disposition are in excess of One Hundred Thousand Dollars ($100,000) during any fiscal
year of Borrower and are not to be reinvested in fixed assets or other similar assets within
one hundred eighty (180) days of such sale or other disposition, Borrower shall make a
Mandatory Prepayment, on the date of such sale or other disposition, in an amount equal to
one hundred percent (100%) of the proceeds of such disposition net of amounts required to
pay taxes and reasonable costs applicable to the disposition.




     (iii) Material Recovery Event. Within ten days after the occurrence of a
Material Recovery Event, Borrower shall furnish to Agent written notice thereof. Within
sixty (60) days after such Material Recovery Event, Borrower shall notify Agent of
Borrower’s determination as to whether or not to replace, rebuild or restore the affected
property (a “Material Recovery Determination Notice”). If Borrower decides not to replace,
rebuild or restore such property or if Borrower has not delivered the Material Recovery
Determination Notice within sixty (60) days after such Material Recovery Event, then the
proceeds of insurance paid in connection with such Material Recovery Event, when received,
shall be paid as a Mandatory Prepayment. If Borrower decides to replace, rebuild or restore
such property, then any such replacement, rebuilding or restoration must be (A) commenced
within six months of the date of the Material
Recovery Event, and (B) substantially completed within twelve (12) months of such
commencement date, with such casualty insurance proceeds and other net proceeds and other
funds available to the appropriate Companies for replacement, rebuilding or restoration of
such property. Any amounts of such insurance proceeds not applied to the costs of
replacement or restoration shall be applied as a Mandatory Prepayment.



     (b) Application of Mandatory Prepayments. Each Mandatory Prepayment required to be
made pursuant to Section 2.9(a) hereof shall be applied to the Term Loan (to the payments of
principal in the inverse order of maturities), with such payment first to be applied to any portion
of the Term Loan that shall constitute the outstanding Base Rate Interest Segments and then to any
portion of the Term Loan that shall constitute outstanding Eurodollar Interest Segments; provided
that, if the outstanding principal amount of any Eurodollar Interest Segment shall be reduced to an
amount less than the minimum amount set forth in Section 2.4(c) hereof as a result of such
prepayment, then such Eurodollar Interest Segment shall be converted into a Base Rate Interest
Segment on the date of such prepayment. Any prepayment of a Eurodollar Interest Segment pursuant
to this Section 2.9 shall be subject to the prepayment provisions set forth in Article III hereof.



ARTICLE III. ADDITIONAL PROVISIONS RELATING TO

EURODOLLAR INTEREST SEGMENTS; INCREASED CAPITAL; TAXES




     Section 3.1. Requirements of Law.




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     (a) If, after the Closing Date, (i) the adoption of or any change in any Requirement of Law or
in the interpretation or application thereof by a Governmental Authority, or (ii) the compliance by
any Lender with any request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority:




     (A) shall subject any Lender to any tax of any kind whatsoever with respect to this
Agreement or any Eurodollar Interest Segment made by it, or change the basis of taxation of
payments to such Lender in respect thereof (except for Taxes and Excluded Taxes which are
governed by Section 3.2 hereof);




     (B) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities in or for
the account of, advances, loans or other extensions of credit by, or any other acquisition
of funds by, any office of such Lender that is not otherwise included in the determination
of the Eurodollar Rate; or




     (C) shall impose on such Lender any other condition;


and the result of any of the foregoing is to increase the cost to such Lender of making, converting
into, continuing or maintaining Eurodollar Interest Segments, or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, Borrower shall pay to such Lender, promptly
after receipt of a written request therefor, any additional amounts necessary to compensate such
Lender for such increased cost or reduced amount receivable. If any Lender becomes entitled to
claim any additional amounts pursuant to this subsection (a), such Lender shall promptly notify
Borrower (with a copy to Agent) of the event by reason of which it has become so entitled.




     (b) If any Lender shall have determined that, after the Closing Date, the adoption of or any
change in any Requirement of Law regarding capital adequacy or in the interpretation or application
thereof by a Governmental Authority or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether or not having the
force of law) from any Governmental Authority shall have the effect of reducing the rate of return
on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder to a
level below that which such Lender or such corporation could have achieved but for such adoption,
change or compliance (taking into consideration the policies of such Lender or such corporation
with respect to capital adequacy), then from time to time, upon submission by such Lender to
Borrower (with a copy to Agent) of a written request therefor (which shall include the method for
calculating such amount), Borrower shall promptly pay or
cause to be paid to such Lender such additional amount or amounts as will compensate such Lender or
such corporation for such reduction.



     (c) A certificate as to any additional amounts payable pursuant to this Section 3.1 submitted
by any Lender to Borrower (with a copy to Agent) shall be conclusive absent manifest error. In
determining any such additional amounts, such Lender may use any method of averaging and
attribution that it (in its sole discretion) shall deem applicable. The obligations of Borrower
pursuant to this Section 3.1 shall survive the termination of this Agreement and the payment of the
Term Loan and all other amounts payable hereunder.



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     Section 3.2. Taxes.



     (a) All payments made by any Credit Party under any Loan Document shall be made free and clear
of, and without deduction or withholding for or on account of any Taxes or Other Taxes. If any
Taxes or Other Taxes are required to be deducted or withheld from any amounts payable to Agent or
any Lender hereunder, the amounts so payable to Agent or such Lender shall be increased to the
extent necessary to yield to Agent or such Lender (after deducting, withholding and payment of all
Taxes and Other Taxes) interest or any such other amounts payable hereunder at the rates or in the
amounts specified in the Loan Documents.



     (b) Whenever any Taxes or Other Taxes are required to be withheld and paid by a Credit Party,
such Credit Party shall timely withhold and pay such taxes to the relevant Governmental
Authorities. As promptly as possible thereafter, Borrower shall send to Agent for its own account
or for the account of the relevant Lender, as the case may be, a certified copy of an original
official receipt received by such Credit Party showing payment thereof or other evidence of payment
reasonably acceptable to Agent or such Lender. If such Credit Party shall fail to pay any Taxes or
Other Taxes when due to the appropriate Governmental Authority or fails to remit to Agent the
required receipts or other required documentary evidence, such Credit Party and Borrower shall
indemnify Agent and the appropriate Lenders on demand for any incremental Taxes or Other Taxes paid
or payable by Agent or such Lender as a result of any such failure.



     (c) If any Lender shall be so indemnified by a Credit Party, such Lender shall use reasonable
efforts to obtain the benefits of any refund, deduction or credit for any taxes or other amounts
with respect to the amount paid by such Credit Party and shall reimburse such Credit Party to the
extent, but only to the extent, that such Lender shall receive a refund with respect to the amount
paid by such Credit Party or an effective net reduction in taxes or other governmental charges
(including any taxes imposed on or measured by the total net income of such Lender) of the United
States or any state or subdivision or any other Governmental Authority thereof by virtue of any
such deduction or credit, after first giving effect to all other deductions and credits otherwise
available to such Lender. If, at the time any audit of such Lender’s income tax return is
completed, such Lender determines, based on such audit, that it shall not have been entitled to the
full amount of any refund reimbursed to such Credit Party as aforesaid or that its net income taxes
shall not have been reduced by a credit or deduction for the full amount reimbursed to such Credit
Party as aforesaid, such Credit Party, upon request of such Lender, shall promptly pay to such
Lender the amount so refunded to which such Lender shall not have been so entitled, or the
amount by which the net income taxes of such Lender shall not have been so reduced, as the case may
be.



     (d) Each Lender that is not (i) a citizen or resident of the United States of America, (ii) a
corporation, partnership or other entity created or organized in or under the laws of the United
States of America (or any jurisdiction thereof), or (iii) an estate or trust that is subject to
federal income taxation regardless of the source of its income (any such Person, a “Non-U.S.
Lender”) shall deliver to Borrower and Agent two copies of either U.S. Internal Revenue Service
Form W-8BEN, Form W-8IMY or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming



22









 







exemption
from U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of “portfolio interest”, a statement with respect to such interest and two copies of a
Form W-8BEN, or any subsequent versions thereof or successors thereto, properly completed and duly
executed by such Non-U.S. Lender claiming complete exemption from, or a reduced rate of, U.S.
federal withholding tax on all payments by Credit Parties under this Agreement and the other Loan
Documents. Such forms shall be delivered by each Non-U.S. Lender on or before the date it becomes
a party to this Agreement or such other Loan Document. In addition, each Non-U.S. Lender shall
deliver such forms or appropriate replacements promptly upon the obsolescence or invalidity of any
form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify
Borrower at any time it determines that such Lender is no longer in a position to provide any
previously delivered certificate to Borrower (or any other form of certification adopted by the
U.S. taxing authorities for such purpose). Notwithstanding any other provision of this subsection
(d), a Non-U.S. Lender shall not be required to deliver any form pursuant to this subsection (d)
that such Non-U.S. Lender is not legally able to deliver.



     (e) The agreements in this Section 3.2 shall survive the termination of the Loan Documents and
the payment of the Term Loan and all other amounts payable hereunder.



     Section 3.3. Funding Losses. Borrower agrees to indemnify each Lender, promptly
after receipt of a written request therefor, and to hold each Lender harmless from, any loss or
expense that such Lender may sustain or incur as a consequence of (a) default by Borrower in making
a borrowing of, conversion into or continuation of Eurodollar Interest Segments after Borrower has
given a notice requesting the same in accordance with the provisions of this Agreement, (b) default
by Borrower in making any prepayment of or conversion from Eurodollar Interest Segments after
Borrower has given a notice thereof in accordance with the provisions of this Agreement, (c) the
making of a prepayment of a Eurodollar Interest Segment on a day that is not the last day of an
Interest Period applicable thereto, or (d) any conversion of a Eurodollar Interest Segment to a
Base Rate Interest Segment on a day that is not the last day of an Interest Period applicable
thereto. Such indemnification shall be in an amount equal to the excess, if any, of (i) the amount
of interest that would have accrued on the amounts so prepaid, or not so borrowed, converted or
continued, for the period from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert
or continue, the Interest Period that would have commenced on the date of such failure) in each
case at the applicable rate of interest for such Lender’s applicable portion of the Term Loan
provided for herein over (ii) the amount of interest (as reasonably determined by such Lender) that
would
have accrued to such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the appropriate London interbank market, along with any reasonable
administration fee charged by such Lender. A certificate as to any amounts payable pursuant to
this Section 3.3 submitted to Borrower (with a copy to Agent) by any Lender shall be conclusive
absent manifest error. The obligations of Borrower pursuant to this Section 3.3 shall survive the
termination of this Agreement and the payment of the Term Loan and all other amounts payable
hereunder.



     Section 3.4. Eurodollar Rate Lending Unlawful; Inability to Determine Rate.



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     (a) If any Lender shall determine (which determination shall, upon notice thereof to Borrower
and Agent, be conclusive and binding on Borrower) that, after the Closing Date, (i) the
introduction of or any change in or in the interpretation of any law makes it unlawful, or (ii) any
Governmental Authority asserts that it is unlawful, for such Lender to make or continue any
Interest Segment as, or to convert (if permitted pursuant to this Agreement) any Interest Segment
into, a Eurodollar Interest Segment, the obligations of such Lender to make, continue or convert
any such Eurodollar Interest Segment shall, upon such determination, be suspended until such Lender
shall notify Agent that the circumstances causing such suspension no longer exist, and all
outstanding Eurodollar Interest Segments payable to such Lender shall automatically convert (if
conversion is permitted under this Agreement) into a Base Rate Interest Segment, or be repaid (if
no conversion is permitted) at the end of the then current Interest Periods with respect thereto or
sooner, if required by law or such assertion.



     (b) If Agent or the Required Lenders determine that for any reason adequate and reasonable
means do not exist for determining the Eurodollar Rate for any requested Interest Period with
respect to a proposed Eurodollar Interest Segment, or that the Eurodollar Rate for any requested
Interest Period with respect to a proposed Eurodollar Interest Segment does not adequately and
fairly reflect the cost to the Lenders of funding such portion of the Term Loan, Agent will
promptly so notify Borrower and each Lender. Thereafter, the obligation of the Lenders to make or
maintain such Eurodollar Interest Segment shall be suspended until Agent (upon the instruction of
the Required Lenders) revokes such notice. Upon receipt of such notice, Borrower may revoke any
pending request for a borrowing of, conversion to or continuation of such Eurodollar Interest
Segment or, failing that, will be deemed to have converted such request into a request for a
borrowing of a Base Rate Interest Segment in the amount specified therein.



     Section 3.5. Discretion of Lenders as to Manner of Funding. Notwithstanding any
provision of this Agreement to the contrary, each Lender shall be entitled to fund and maintain its
funding of all or any part of such Lender’s Loans in any manner such Lender deems to be
appropriate; it being understood, however, that for the purposes of this Agreement all
determinations hereunder shall be made as if such Lender had actually funded and maintained each
Eurodollar Interest Segment during the applicable Interest Period for such Eurodollar Interest
Segment through the purchase of deposits having a maturity corresponding to such Interest Period
and bearing an interest rate equal to the Eurodollar Rate for such Interest Period.



ARTICLE IV. CONDITIONS PRECEDENT




     Section 4.1. Conditions to Each Credit Event. The obligation of the Lenders to
participate in any Credit Event shall be conditioned, in the case of each Credit Event, upon the
following:



     (a) all conditions precedent as listed in Section 4.2 hereof required to be satisfied prior to
the first Credit Event shall have been satisfied prior to or as of the first Credit Event;



     (b) Borrower shall have submitted a Notice of Interest Segment Selection and otherwise
complied with Section 2.5 hereof;



24









 





     (c) no Default or Event of Default shall then exist or immediately after such Credit Event
would exist; and



     (d) each of the representations and warranties contained in Article VI hereof shall be true in
all material respects as if made on and as of the date of such Credit Event, except to the extent
that any thereof expressly relate to an earlier date.


Each request by Borrower for a Credit Event shall be deemed to be a representation and warranty by
Borrower as of the date of such request as to the satisfaction of the conditions precedent
specified in subsections (c) and (d) above.




     Section 4.2. Conditions to the First Credit Event. Borrower shall cause the
following conditions to be satisfied on or prior to the Closing Date. The obligation of the
Lenders to participate in the first Credit Event is subject to Borrower satisfying each of the
following conditions prior to or concurrently with such Credit Event:



     (a) Notes as Requested. Borrower shall have executed and delivered to each Lender
requesting a Term Note such Lender’s Term Note.



     (b) Guaranties of Payment. Each Guarantor of Payment shall have executed and
delivered to Agent, for the benefit of the Lenders, a Guaranty of Payment, in form and substance
satisfactory to Agent and the Lenders.



     (c) Pledge Agreements. Borrower shall have (i) executed and delivered to Agent, for
the benefit of the Lenders, a Pledge Agreement, in form and substance satisfactory to Agent and the
Lenders, with respect to the Pledged Securities, (ii) executed and delivered to Agent, for the
benefit of the Lenders, appropriate transfer powers for each of the Pledged Securities, (iii)
delivered to Agent, for the benefit of the Lenders, the Pledged Securities, and (iv) delivered to
Agent any other documentation (including legal opinions from foreign counsel) reasonably required
by Agent regarding the perfection of the security interest of Agent, for the benefit of the
Lenders, in such Pledged Securities.



     (d) Lien Searches. With respect to the property owned or leased by each Credit Party,
Borrower shall have caused to be delivered to Agent (i) the results of Uniform Commercial Code lien
searches, satisfactory to Agent and the Lenders, (ii) the results of federal and state tax lien and
judicial lien searches, satisfactory to Agent and the Lenders, (iii) Uniform Commercial Code
termination statements reflecting termination of all U.C.C. Financing Statements previously filed
by any Person and not expressly permitted pursuant to Section 5.9 hereof, and (iv) the results of a
search of the register of companies and the register of charges maintained by the Registrar of
Companies in Bermuda and a search of the Supreme Court Causes Book maintained at the registry of
the Supreme Court in Hamilton, Bermuda, satisfactory to Agent and the Lenders.



     (e) Officer’s Certificate, Resolutions, Organizational Documents. Each Credit Party
shall have delivered to Agent an officer’s certificate (or comparable domestic or foreign



25









 







documents) certifying the names of the officers of such Credit Party authorized to sign the Loan
Documents, together with the true signatures of such officers and certified copies of (i) the
resolutions of the board of directors (or comparable domestic or foreign documents) of such Credit
Party evidencing approval of the execution and delivery of the Loan Documents and the execution of
other Related Writings to which such Credit Party is a party, and (ii) the Organizational Documents
of such Credit Party.



     (f) Good Standing and Full Force and Effect Certificates. Borrower shall have
delivered to Agent a good standing certificate or full force and effect certificate (or comparable
document, if neither certificate is available in the applicable jurisdiction), as the case may be,
for each Credit Party, issued on or about the Closing Date by the Secretary of State or comparable
entity in the state or states (or jurisdiction or jurisdictions) where such Credit Party is
incorporated or formed or qualified as a foreign entity.



     (g) Legal Opinion. Borrower shall have delivered to Agent (i) an opinion of counsel
for Borrower and each other Credit Party, in form and substance satisfactory to Agent and the
Lenders, and (ii) an opinion of Bermudian counsel, in form and substance satisfactory to Agent and
the Lenders.



     (h) Advertising Permission Letter. Borrower shall have delivered to Agent an
advertising permission letter, authorizing Agent to publicize the transaction and specifically to
use the name of Borrower in connection with “tombstone” advertisements in one or more publications
selected by Agent.



     (i) Agent Fee Letter, Closing Fee Letter and Other Fees. Borrower shall have (i)
executed and delivered to Agent, the Agent Fee Letter and paid to Agent, for its sole account, the
fees stated therein, (ii) executed and delivered to Agent, the Closing Fee Letter and paid to
Agent, for the benefit of the Lenders, the fees stated therein, and (iii) paid all legal fees and
expenses of Agent in connection with the preparation and negotiation of the Loan Documents.



     (j) Closing Certificate. Borrower shall have delivered to Agent and the Lenders an
officer’s certificate certifying that, as of the Closing Date, (i) all conditions precedent set
forth in
this Article IV have been satisfied, (ii) no Default or Event of Default exists nor immediately
after the first Credit Event will exist, and (iii) each of the representations and warranties
contained in Article VI hereof are true and correct in all material respects as of the Closing
Date.



     (k) Letter of Direction. Borrower shall have delivered to Agent a letter of direction
authorizing Agent, on behalf of the Lenders, to disburse the proceeds of the Term Loan, which
letter of direction includes the authorization to transfer funds under this Agreement and the wire
instructions that set forth the locations to which such funds shall be sent.



     (l) No Material Adverse Change. No material adverse change, in the opinion of Agent,
shall have occurred in the business, operations, property, condition (financial or otherwise) or
prospects of (i) the Companies, taken as a whole, since September 30, 2009, or (ii) Parent and
Parent’s Subsidiaries, taken as a whole, since September 30, 2009.



26









 





     (m) Miscellaneous. Borrower shall have provided to Agent and the Lenders such other
items and shall have satisfied such other conditions as may be reasonably required by Agent or the
Lenders.



ARTICLE V. COVENANTS




     Section 5.1. Insurance. Each Company shall (a) maintain insurance to such extent and
against such hazards and liabilities as is commonly maintained by Persons similarly situated; and
(b) within ten days of any Lender’s written request, furnish to such Lender such information about
such Company’s insurance as that Lender may from time to time reasonably request, which information
shall be prepared in form and detail satisfactory to such Lender and certified by a Financial
Officer of such Company.



     Section 5.2. Money Obligations. Each Company shall pay in full (a) prior in each
case to the date when penalties would attach, all taxes, assessments and governmental charges and
levies (except only those so long as and to the extent that the same shall be contested in good
faith by appropriate and timely proceedings and for which adequate provisions have been established
in accordance with GAAP) for which it may be or become liable or to which any or all of its
properties may be or become subject; (b) all of its material wage obligations to its employees in
compliance with the Fair Labor Standards Act (29 U.S.C. §§ 206-207) or any comparable provisions,
including those under foreign laws with respect to employee source deductions, obligations and
employer obligations to its employees; and (c) all of its other material obligations calling for
the payment of money (except only those so long as and to the extent that the same shall be
contested in good faith and for which adequate provisions have been established in accordance with
GAAP) before such payment becomes overdue.



     Section 5.3. Financial Statements and Information.



     (a) Quarterly Financials. Borrower shall deliver to Agent and the Lenders, within
forty-five (45) days after the end of each of the first three quarterly periods of each fiscal year
of Parent, an unaudited condensed Consolidated balance sheet of Parent as of the end of such period
and the related unaudited Consolidated statements of operations and cash flow for the quarter and
fiscal year to date periods, all prepared on a Consolidated and consolidating basis, in accordance
with GAAP, and in form and detail satisfactory to Agent and the Lenders and certified by a
Financial Officer.



     (b) Annual Audit Report. Borrower shall deliver to Agent and the Lenders, within
ninety (90) days after the end of each fiscal year of Parent, a copy of the audited Consolidated
balance sheet of Parent as of the end of such fiscal year and the related Consolidated statements
of operations, changes in shareholders’ equity and cash-flow (together with all footnotes thereto)
for such year, all prepared on a Consolidated basis, in accordance with GAAP, and in form and
detail satisfactory to Agent and the Lenders and certified by an unqualified opinion of an
independent public accountant satisfactory to Agent, which report shall include balance sheets and
statements of income (loss), stockholders’ equity and cash-flow for that period.



27









 





     (c) Compliance Certificate. Borrower shall deliver to Agent and the Lenders, within
ten days after the end of each month and concurrently with the delivery of the financial statements
set forth in subsections (a) and (b) above, a Compliance Certificate.



     (d) Management Report. Borrower shall deliver to Agent and the Lenders, concurrently
with the delivery of the quarterly and annual financial statements set forth in subsections (a) and
(b) above, a copy of any management report, letter or similar writing furnished to Parent by
Parent’s independent outside auditors in respect of the Parents systems, operations, financial
condition or properties.



     (e) Shareholder and SEC Documents. Borrower shall deliver to Agent and the Lenders,
as soon as available, copies of all notices, reports, definitive proxy or other statements and
other documents sent by Parent to its shareholders, to the holders of any of its debentures or
bonds or the trustee of any indenture securing the same or pursuant to which they are issued, or
sent by Parent (in final form) to any securities exchange or over the counter authority or system,
or to the SEC or any similar federal agency having regulatory jurisdiction over the issuance of
Parent’s securities.



     (f) Financial Information of the Companies. Borrower shall deliver to Agent and the
Lenders, within ten days of the written request of Agent or any Lender, such other information
about the financial condition, properties and operations of Parent or any Company as may from time
to time be reasonably requested, which information shall be submitted in form and detail
satisfactory to Agent and the Lenders and certified by a Financial Officer of Parent or the Company
or Companies in question.



     Section 5.4. Financial Records. Parent and each Company shall at all times maintain
true and complete records and books of account, including, without limiting the generality of the
foregoing, appropriate provisions for possible losses and liabilities, all in accordance with GAAP,
and at all reasonable times (during
normal business hours and upon notice to such Company) permit Agent or any Lender, or any
representative of Agent or such Lender, to examine Parent’s or such Company’s books and records and
to make excerpts therefrom and transcripts thereof.



     Section 5.5. Franchises; Change in Business.



     (a) Each Company (other than a Dormant Subsidiary) shall preserve and maintain at all times
its existence, and its rights and franchises necessary for its business, except as otherwise
permitted pursuant to Section 5.12 hereof.



     (b) No Company shall engage in any business if, as a result thereof, the general nature of the
business of the Companies taken as a whole would be substantially changed from the general nature
of the business the Companies are engaged in on the Closing Date.



     Section 5.6. ERISA and Non-U.S. Pension and Benefit Plan Compliance.



28









 





     (a) Generally. No Company shall incur any material accumulated funding deficiency
within the meaning of ERISA, or any material liability to the PBGC, established thereunder in
connection with any ERISA Plan. Borrower shall furnish to Agent and the Lenders (i) as soon as
possible and in any event within thirty (30) days after any Company knows or has reason to know
that any Reportable Event with respect to any ERISA Plan has occurred, a statement of a Financial
Officer of such Company, setting forth details as to such Reportable Event and the action that such
Company proposes to take with respect thereto, together with a copy of the notice of such
Reportable Event given to the PBGC if a copy of such notice is available to such Company, and (ii)
promptly after receipt thereof, a copy of any notice such Company, or any member of the Controlled
Group may receive from the PBGC or the Internal Revenue Service with respect to any ERISA Plan
administered by such Company; provided that this latter clause shall not apply to notices of
general application promulgated by the PBGC or the Internal Revenue Service. Borrower shall
promptly notify Agent of any material taxes assessed, proposed to be assessed or that Borrower has
reason to believe may be assessed against a Company by the Internal Revenue Service with respect to
any ERISA Plan. As used in this Section 5.6(a), “material” means the measure of a matter of
significance that shall be determined as being an amount equal to five percent (5%) of Consolidated
Net Worth. As soon as practicable, and in any event within twenty (20) days, after any Company
shall become aware that an ERISA Event shall have occurred, such Company shall provide Agent with
notice of such ERISA Event with a certificate by a Financial Officer of such Company setting forth
the details of the event and the action such Company or another Controlled Group member proposes to
take with respect thereto. Borrower shall, at the request of Agent or any Lender, deliver or cause
to be delivered to Agent or such Lender, as the case may be, true and correct copies of any
documents relating to the ERISA Plan of any Company.



     (b) Non-U.S. Pension Plans and Benefit Plans.




     (i) For each existing, or hereafter adopted, Non-U.S. Pension Plan and Non-U.S. Benefit
Plan, Borrower and any appropriate Non-U.S. Subsidiary shall in a timely fashion comply with
and perform in all material respects all of its obligations under and in respect of such
Non-U.S. Pension Plan or Non-U.S. Benefit Plan, including under any funding agreements and
all applicable laws (including any fiduciary, funding, investment and administration
obligations).




     (ii) All employer or employee payments, contributions or premiums required to be
remitted, paid to or in respect of each Non-U.S. Pension Plan or Non-U.S. Benefit Plan shall
be paid or remitted by Borrower and any appropriate Non-U.S. Subsidiary in a timely fashion
in accordance with the terms thereof, any funding agreements and all applicable laws.




     (iii) Borrower and any appropriate Non-U.S. Subsidiary shall deliver to Agent (A) if
requested by Agent, copies of each annual and other return, report or valuation with respect
to each Non-U.S. Pension Plan as filed with any applicable Governmental Authority; and (B)
promptly after receipt thereof, a copy of any material direction, order, notice, ruling or
opinion that Borrower and any appropriate Non-U.S. Subsidiary may



29









 







receive from any
applicable Governmental Authority with respect to any Non-U.S. Pension Plan.



     Section 5.7. Financial Covenant — Minimum Cash Balance. Borrower and its direct
Subsidiary shall at all times maintain, in deposit and investment accounts, unrestricted and
unencumbered cash-on-hand and Cash Equivalent Investments in an aggregate amount of no less than
Eighty Million Dollars ($80,000,000).



     Section 5.8. Borrowing. No Company shall create, incur or have outstanding any
Indebtedness of any kind; provided that this Section 5.8 shall not apply to the following:



     (a) the Term Loan and any other Indebtedness under this Agreement;



     (b) any loans granted to or Capitalized Lease Obligations entered into by any Company for the
purchase or lease of fixed assets (and refinancings of such loans or Capitalized Lease
Obligations), which loans and Capitalized Lease Obligations shall only be secured by the fixed
assets being purchased or leased, so long as the aggregate principal amount of all such loans and
Capitalized Lease Obligations for all Companies shall not exceed Ten Million Dollars ($10,000,000)
at any time outstanding;



     (d) the Indebtedness existing on the Closing Date, in addition to the other Indebtedness
permitted to be incurred pursuant to this Section 5.8, as set forth in Schedule 5.8 hereto
(and any extension, renewal or refinancing thereof but only to the extent that the principal amount
thereof does not increase after the Closing Date);



     (e) loans to a Company from a Company so long as each such Company is a Credit Party;



     (f) loans from Parent or a U.S. Subsidiary of Parent to a Company;



     (g) Indebtedness under any Hedge Agreement, so long as such Hedge Agreement shall have been
entered into in the ordinary course of business and not for speculative purposes; and



     (h) unsecured Indebtedness of a Company, so long as the aggregate principal amount of all such
Indebtedness for all Companies shall not exceed Ten Million Dollars ($10,000,000) at any time
outstanding.



     Section 5.9. Liens. No Company shall create, assume or suffer to exist (upon the
happening of a contingency or otherwise) any Lien upon any of its property or assets, whether now
owned or hereafter acquired; provided that this Section 5.9 shall not apply to the following:



     (a) Liens for taxes not yet due or that are being actively contested in good faith by
appropriate proceedings and for which adequate reserves shall have been established in accordance
with GAAP;



30









 





     (b) other statutory or common law Liens incidental to the conduct of its business or the
ownership of its property and assets that (i) were not incurred in connection with the borrowing of
money or the obtaining of advances or credit, and (ii) do not in the aggregate materially detract
from the value of its property or assets or materially impair the use thereof in the operation of
its business;



     (c) Liens on property or assets of a Subsidiary to secure obligations of such Subsidiary to a
Credit Party;



     (d) any Lien granted to Agent, for the benefit of the Lenders;



     (e) purchase money Liens on fixed assets securing the loans and Capitalized Lease Obligations
pursuant to Section 5.8(b) hereof, provided that such Lien is limited to the purchase price and
only attaches to the property being acquired;



     (f) the Liens existing on the Closing Date as set forth in Schedule 5.9 hereto and
replacements, extensions, renewals, refundings or refinancings thereof, but only to the extent that
the amount of debt secured thereby shall not be increased; or



     (g) easements or other minor defects or irregularities in title of real property not
interfering in any material respect with the use of such property in the business of any Company.


No Company shall enter into any contract or agreement (other than a contract or agreement entered
into in connection with the purchase or lease of fixed assets that prohibits Liens on such
fixed assets) that would prohibit Agent or the Lenders from acquiring a security interest, mortgage
or other Lien on, or a collateral assignment of, any of the property or assets of such Company.




     Section 5.10. Regulations T, U and X. No Company shall take any action that would
result in any non-compliance of the Term Loan with Regulations T, U or X, or any other applicable
regulation, of the Board of Governors of the Federal Reserve System.



     Section 5.11. Investments, Loans and Guaranties. No Company shall, without the prior
written consent of Agent and the Required Lenders, (a) create, acquire or hold any Subsidiary, (b)
make or hold any investment in any stocks, bonds or securities of any kind, (c) be or become a
party to any joint venture or other partnership, (d) make or keep outstanding any advance or loan
to any Person, or (e) be or become a Guarantor of any kind (other than a Guarantor of Payment under
the Loan Documents); provided that this Section 5.11 shall not apply to the following:




     (i) any endorsement of a check or other medium of payment for deposit or collection
through normal banking channels or similar transaction in the normal course of business;



31









 






     (ii) any investment in direct obligations of the United States of America or in
certificates of deposit issued by a member bank (having capital resources in excess of Five
Hundred Million Dollars ($500,000,000)) of the Federal Reserve System;




     (iii) any investment in commercial paper or securities that at the time of such
investment is assigned the highest quality rating in accordance with the rating systems
employed by either Moody’s or Standard & Poor’s, or any other investment made according to
the Borrower Investment Policy;




     (iv) the holding of each of the Subsidiaries listed on Schedule 6.1 hereto, and
the creation, acquisition and holding of any new Subsidiary after the Closing Date so long
as such new Subsidiary shall have been created, acquired or held in accordance with the
terms and conditions of this Agreement;




     (v) loans to, investments in and guaranties of the Indebtedness of, a Company from or
by a Company so long as each such Company is a Credit Party;




     (vi) loans to, investments in and guaranties of the Indebtedness of, Parent or a U.S.
Subsidiary of Parent;




     (vii) any Permitted Investment, so long as no Default or Event of Default shall then
exist or would result therefrom.



     Section 5.12. Merger and Sale of Assets. No Company shall merge, amalgamate or
consolidate with any other Person, or sell,
lease or transfer or otherwise dispose of any assets to any Person other than in the ordinary
course of business, except that, if no Default or Event of Default shall then exist or immediately
thereafter shall begin to exist:



     (a) a Credit Party may merge with (i) Parent or a U.S. Subsidiary of Parent (provided that
Parent or such U.S. Subsidiary shall be the continuing or surviving Person), (ii) Borrower
(provided that both Borrower and Parent shall be continuing or surviving Persons) or (iii) any one
or more Guarantors of Payment (provided that a Credit Party shall be the continuing or surviving
Person and in all cases, Parent shall be a continuing or surviving Person);



     (b) a Credit Party may sell, lease, transfer or otherwise dispose of any of its assets to (i)
Parent or a U.S. Subsidiary of Parent, (ii) Borrower or (ii) any other Credit Party;



     (c) a Subsidiary that is not a Credit Party may sell, lease, transfer or otherwise dispose of
any of its assets to (i) Parent or a U.S. Subsidiary of Parent, or (ii) any other Company;



     (d) a Subsidiary that is not a Credit Party may merge or amalgamate with a any other
Subsidiary that is not a Credit Party; and



     (e) a Company may sell, lease, transfer or otherwise dispose of any assets that are obsolete
or no longer useful or no longer used in such Company’s business.



32









 





     Section 5.13. Acquisitions. No Company shall effect an Acquisition.



     Section 5.14. Notice. Borrower shall cause a Financial Officer to promptly notify
Agent and the Lenders, in writing, whenever:



     (a) a Default or Event of Default may occur hereunder or any representation or warranty made
in Article VI hereof or elsewhere in this Agreement or in any Related Writing may for any reason
cease in any material respect to be true and complete; or



     (b) Borrower learns of a litigation or proceeding against Borrower before a court,
administrative agency or arbitrator that, if successful, might have a Material Adverse Effect.



     Section 5.15. Restricted Payments. No Company shall make or commit itself to make
any Restricted Payment at any time, except that the Companies may make Capital Distributions.



     Section 5.16. Environmental Compliance. Each Company shall comply in all material
respects with any and all Environmental Laws including, without limitation, all Environmental Laws
and Environmental Permits in jurisdictions in which such Company owns or operates a facility or
site, arranges for disposal or treatment of hazardous substances, solid waste or other wastes,
accepts for transport any hazardous substances, solid waste or other wastes or holds any interest
in real property or
otherwise. Borrower shall furnish to Agent and the Lenders, promptly after receipt thereof, a copy
of any notice such Company may receive from any Governmental Authority or private Person, or
otherwise, that any material litigation or proceeding pertaining to any environmental, health or
safety matter has been filed or is threatened against such Company, any real property in which such
Company holds any interest or any past or present operation of such Company. No Company shall
allow the release or disposal of hazardous waste, solid waste or other wastes on, under or to any
real property in which any Company holds any ownership interest or performs any of its operations,
in violation of any Environmental Law. As used in this Section 5.16, “litigation or proceeding”
means any demand, claim, notice, suit, suit in equity action, administrative action, investigation
or inquiry whether brought by any Governmental Authority or private Person, or otherwise. Borrower
shall defend, indemnify and hold Agent and the Lenders harmless against all costs, expenses,
claims, damages, penalties and liabilities of every kind or nature whatsoever (including attorneys’
fees) arising out of or resulting from the noncompliance of any Company with any Environmental Law.
Such indemnification shall survive any termination of this Agreement.



     Section 5.17. Affiliate Transactions. No Company shall, directly or indirectly,
enter into or permit to exist any transaction (including, without limitation, the purchase, sale,
lease or exchange of any property or the rendering of any service) with any Affiliate (other than
Parent or a Company that is a Credit Party) on terms that shall be less favorable to such Company
than those that might be obtained at the time in a transaction with a Person that is not an
Affiliate; provided that the foregoing shall not prohibit the payment of customary and reasonable
directors’ fees to directors who are not employees of a Company or an Affiliate.



33









 





     Section 5.18. Use of Proceeds. Borrower’s use of the proceeds of the Term Loan shall
be for working capital and other general corporate purposes of the Companies, including Capital
Distributions.



     Section 5.19. Pledge of Stock or Other Ownership Interest.



     (a) Pledge of Stock or Other Ownership Interest. With respect to the creation or
acquisition of a first-tier Subsidiary of Borrower, Borrower shall (i) deliver to Agent, for the
benefit of the Lenders, sixty-five percent (65%) of the voting shares of stock or other voting
equity interests owned by such Credit Party and one hundred percent (100%) of all non-voting shares
of stock or other non-voting equity interests owned by such Credit Party, and (ii) deliver to
Agent, for the benefit of the Lenders, the outstanding shares certificates (or other evidence of
equity) evidencing such pledged ownership interest and any related (undated) share transfer form,
duly endorsed.



     (b) Perfection or Registration of Interest in Foreign Shares. With respect to any
shares pledged to Agent, for the benefit of the Lenders, on or after the Closing Date, Agent shall
at all times, in the discretion of Agent or the Required Lenders, have the right to perfect, at
Borrower’s cost, payable upon request therefor (including, without limitation, any counsel, or
notary, filing, registration or similar, fees, costs or expenses), its security interest in such
shares
in the respective jurisdiction. Such perfection may include the requirement that Borrower promptly
execute and deliver to Agent a separate pledge document (prepared by Agent and in form and
substance satisfactory to Agent), covering such equity interests, that conforms to the requirements
of the applicable jurisdiction, together with an opinion of local counsel as to the perfection of
the security interest provided for therein, and all other documentation necessary or desirable to
effect the foregoing and to permit Agent to exercise any of its rights and remedies in respect
thereof.



     Section 5.20. Restrictive Agreements. Except as set forth in this Agreement,
Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, create
or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the
ability of any Subsidiary to (a) make, directly or indirectly, any Capital Distribution to
Borrower, (b) make, directly or indirectly, loans or advances or capital contributions to Borrower
or (c) transfer, directly or indirectly, any of the properties or assets of such Subsidiary to
Borrower; except for such encumbrances or restrictions existing under or by reason of (i)
applicable law, (ii) customary non-assignment provisions in leases or other agreements entered in
the ordinary course of business and consistent with past practices, or (iii) customary restrictions
in security agreements or mortgages securing Indebtedness, or capital leases, of a Company to the
extent such restrictions shall only restrict the transfer of the property subject to such security
agreement, mortgage or lease.



     Section 5.21. Other Covenants and Provisions. In the event that any Company shall
enter into, or shall have entered into, any Material Indebtedness Agreement, wherein the financial
covenants contained therein shall be more restrictive than the financial covenants set forth
herein, then the Companies shall immediately be bound hereunder (without further action) by such
more restrictive financial covenants with the same force and effect as if such financial



34









 







covenants
were written herein. In addition to the foregoing, Borrower shall provide prompt written notice to
Agent of the creation or existence of any Material Indebtedness Agreement that has such more
restrictive provisions, and shall, within fifteen (15) days thereafter (if requested by Agent),
execute and deliver to Agent an amendment to this Agreement that incorporates such more restrictive
provisions, with such amendment to be in form and substance satisfactory to Agent.



     Section 5.22. Pari Passu Ranking. The Obligations shall, and Borrower shall take all
necessary action to ensure that the Obligations shall, at all times, rank at least pari passu in
right of payment with all other senior unsecured Indebtedness of Borrower.



     Section 5.23. Guaranty Under Material Indebtedness Agreement. No Company shall be or
become a Guarantor or primary obligor of the Indebtedness incurred pursuant to any Material
Indebtedness Agreement unless such Company shall also be Borrower or a Guarantor of Payment under
this Agreement prior to or concurrently therewith.



     Section 5.24. Amendment of Organizational Documents. No Company shall amend its
Organizational Documents to change its name or state, province or other jurisdiction of
organization, or otherwise amend its Organizational Documents in any manner adverse to the Lenders,
without the prior written consent of Agent, which consent shall not be unreasonably withheld or
delayed.



     Section 5.25. Further Assurances. Borrower shall, and shall cause each other Credit
Party to, promptly upon request by Agent, or the Required Lenders through Agent, (a) correct any
material defect or error that may be discovered in any Loan Document or in the execution,
acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register any and all such further acts, deeds,
certificates, assurances and other instruments related to the Pledged Securities as Agent, or the
Required Lenders through Agent, may reasonably require from time to time in order to carry out more
effectively the purposes of the Loan Documents.



ARTICLE VI. REPRESENTATIONS AND WARRANTIES




     Section 6.1. Corporate Existence; Subsidiaries; Foreign Qualification. Each Company
is duly organized, validly existing, and in good standing (or comparable concept in the applicable
jurisdiction) under the laws of its state or jurisdiction of incorporation or organization, and is
duly qualified and authorized to do business and is in good standing (or comparable concept in the
applicable jurisdiction) as a foreign entity in the jurisdictions set forth opposite its name on
Schedule 6.1 hereto, which are all of the states or jurisdictions where the character of
its property or its business activities makes such qualification necessary, except where a failure
to so qualify would not reasonably be expected to have a Material Adverse Effect. Schedule
6.1 hereto sets forth, as of the Closing Date, each Subsidiary of Borrower (and whether such
Subsidiary is a Dormant Subsidiary), its state (or jurisdiction) of formation, its registered
office (or other similar concept), its relationship to Borrower, including the percentage of each
class of stock or other equity interest owned by a Company, each Person that owns the stock or
other equity interest of



35









 







each Company, the location of its chief executive office and its principal
place of business. Borrower, directly or indirectly, owns all of the equity interests of each of
its Subsidiaries (excluding directors’ qualifying shares and, in the case of Non-U.S. Subsidiaries,
other nominal amounts of shares held by a Person other than a Company).



     Section 6.2. Corporate Authority. Each Credit Party has the right and power and is
duly authorized and empowered to enter into, execute and deliver the Loan Documents to which it is
a party and to perform and observe the provisions of the Loan Documents. The Loan Documents to
which each Credit Party is a party have been duly authorized and approved by such Credit Party’s
board of directors or other governing body, as applicable, and are the valid and binding
obligations of such Credit Party, enforceable against such Credit Party in accordance with their
respective terms. The execution, delivery and performance of the Loan Documents do not conflict
with, result in a breach in any of the provisions of, constitute a default under, or result in the
creation of a Lien (other than
Liens permitted under Section 5.9 hereof) upon any assets or property of any Company under the
provisions of, such Company’s Organizational Documents or any material agreement to which such
Company is a party.



     Section 6.3. Compliance with Laws and Contracts. Each Company:



     (a) holds permits, certificates, licenses, orders, registrations, franchises, authorizations,
and other approvals from any Governmental Authority necessary for the conduct of its business and
is in compliance, in all material respects, with all applicable laws relating thereto;



     (b) is in compliance, in all material respects, with all federal, state, local, or foreign
applicable statutes, rules, regulations, and orders including, without limitation, those relating
to environmental protection, occupational safety and health, and equal employment practices;



     (c) is not in violation of or in default under any material agreement to which it is a party
or by which its assets are subject or bound;



     (d) has ensured that no Person who owns a controlling interest in a Company or otherwise
controls a Company (other than Borrower) and no executive officer or director of Borrower is (i)
listed on the Specially Designated Nationals and Blocked Person List maintained by the Office of
Foreign Assets Control (“OFAC”), Department of the Treasury, or any other similar lists maintained
by OFAC pursuant to any authorizing statute, executive order or regulation, or (ii) a Person
designated under Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23, 2001), any
related enabling legislation or any other similar executive orders;



     (e) is in compliance with all applicable Bank Secrecy Act (“BSA”) and anti-money laundering
laws and regulations; and



     (f) is in compliance with the Patriot Act.



36









 





     Section 6.4. Litigation and Administrative Proceedings. Except as disclosed on
Schedule 6.4 hereto, there are (a) no lawsuits, actions, investigations, examinations or
other proceedings pending or, to the knowledge of Borrower, threatened against any Company, or in
respect of which any Company may have any liability, in any court or before or by any Governmental
Authority, arbitration board, or other tribunal that could reasonably be expected to have a
Material Adverse Effect, (b) no orders, writs, injunctions, judgments, or decrees of any court or
Governmental Authority to which any Company is a party or by which the property or assets of any
Company are bound that could reasonably be expected to have a Material Adverse Effect, and (c) no
grievances, disputes, or controversies outstanding with any union or other organization of the
employees of any Company, or threats of work stoppage, strike, or pending demands for collective
bargaining that could reasonably be expected to have a Material Adverse Effect.



     Section 6.5. Title to Assets. Each Company has good title to and ownership of all
property it purports to own, which property is free and clear of all Liens, except those permitted
under Section 5.9 hereof.



     Section 6.6. Liens and Security Interests. On and after the Closing Date, except for
Liens permitted pursuant to Section 5.9 hereof, (a) there is and will be no U.C.C. Financing
Statement or similar notice of Lien outstanding covering any personal property of any Company; (b)
there is and will be no mortgage outstanding covering any real property of any Company; and (c) no
real or personal property of any Company is subject to any Lien of any kind. No Company has
entered into any contract or agreement (other than a contract or agreement entered into in
connection with the purchase or lease of fixed assets that prohibits Liens on such fixed assets)
that exists on or after the Closing Date that would prohibit Agent or the Lenders from acquiring a
Lien on, or a collateral assignment of, any of the property or assets of any Company.



     Section 6.7. Tax Returns. All federal, state, provincial and local tax returns and
other reports required by law to be filed in respect of the income, business, properties and
employees of each Company have been filed (or extended as permitted by applicable law) and all
taxes, assessments, fees and other governmental charges that are due and payable have been paid,
except as otherwise permitted herein. The provision for taxes on the books of each Company is
adequate for all years not closed by applicable statutes and for the current fiscal year.



     Section 6.8. Environmental Laws. Each Company is in material compliance with all
Environmental Laws, including, without limitation, all Environmental Laws in all jurisdictions in
which any Company owns or operates, or has owned or operated, a facility or site, arranges or has
arranged for disposal or treatment of hazardous substances, solid waste or other wastes, accepts or
has accepted for transport any hazardous substances, solid waste or other wastes or holds or has
held any interest in real property or otherwise. No litigation or proceeding arising under,
relating to or in connection with any Environmental Law or Environmental Permit is pending or, to
the best knowledge of each Company, threatened, against any Company, any real property in which
any Company holds or has held an interest or any past or present operation of any Company. No material
release, threatened release or disposal of hazardous waste, solid waste or other wastes is
occurring, or has occurred (other than those that are currently being remediated in accordance with
Environmental Laws), on, under or to any real property in which



37









 







any Company holds any interest or
performs any of its operations, in violation of any Environmental Law. As used in this Section
6.8, “litigation or proceeding” means any demand, claim, notice, suit, suit in equity, action,
administrative action, investigation or inquiry whether brought by any Governmental Authority or
private Person, or otherwise.



     Section 6.9. Continued Business. There exists no actual, pending, or, to Borrower’s
knowledge, any threatened termination, cancellation or material limitation of, or any materially
adverse modification or change in the business relationship of any Company and any customer or
supplier, or any group of customers or suppliers, whose purchases or supplies, individually or in
the aggregate, are material to the
business of any Company, and there exists no present condition or state of facts or circumstances
that would have a Material Adverse Effect or prevent a Company from conducting such business or the
transactions contemplated by this Agreement in substantially the same manner in which it was
previously conducted.



     Section 6.10. Employee Benefits Plans.




     (a) US Employee Benefit Plans. No ERISA Event has occurred or is expected to
occur with respect to an ERISA Plan. Full payment has been made of all amounts that a
Controlled Group member is required, under applicable law or under the governing documents,
to have paid as a contribution to or a benefit under each ERISA Plan. The liability of each
Controlled Group member with respect to each ERISA Plan has been fully funded based upon
reasonable and proper actuarial assumptions, has been fully insured, or has been fully
reserved for on its financial statements. No changes have occurred or are expected to occur
that would cause a material increase in the cost of providing benefits under the ERISA Plan.
With respect to each ERISA Plan that is intended to be qualified under Code Section 401(a),
(i) the ERISA Plan and any associated trust operationally comply with the applicable
requirements of Code Section 401(a); (ii) the ERISA Plan and any associated trust have been
amended to comply with all such requirements as currently in effect, other than those
requirements for which a retroactive amendment can be made within the “remedial amendment
period” available under Code Section 401(b) (as extended under Treasury Regulations and
other Treasury pronouncements upon which taxpayers may rely); (iii) the ERISA Plan and any
associated trust have received a favorable determination letter from the Internal Revenue
Service stating that the ERISA Plan qualifies under Code Section 401(a), that the associated
trust qualifies under Code Section 501(a) and, if applicable, that any cash or deferred
arrangement under the ERISA Plan qualifies under Code Section 401(k), unless the ERISA Plan
was first adopted at a time for which the above-described “remedial amendment period” has
not yet expired; (iv) the ERISA Plan currently satisfies the requirements of Code Section
410(b), without regard to any retroactive amendment that may be made within the
above-described “remedial amendment period”; and (v) no contribution made to the ERISA Plan
is subject to an excise tax under Code Section 4972. With respect to any Pension Plan, the
“accumulated benefit obligation” of Controlled Group members with respect to the Pension
Plan (as determined in accordance with Statement of Accounting Standards No. 87, “Employers’
Accounting for Pensions”) does not exceed the fair market value of Pension Plan assets.



38









 






     (b) Non-U.S. Pension Plan and Benefit Plans. The Non-U.S. Pension Plans are
duly registered under all applicable laws which require registration. Borrower and any
appropriate Non-U.S. Subsidiaries have complied with and performed all of its obligations
under and in respect of the Non-U.S. Pension Plans and Non-U.S. Benefit Plans under the
terms thereof, any funding agreements and all applicable laws (including any fiduciary,
funding, investment and administration obligations) except to the extent as would not
reasonably be expected to have a Material Adverse Effect. All employer and employee
payments, contributions or premiums to be remitted, paid to or in respect of
each Non-U.S. Pension Plan or Non-U.S. Benefit Plan have been paid in a timely fashion in
accordance with the terms thereof, any funding agreement and all applicable laws except to
the extent the failure to do so would not reasonably be expected to have a Material Adverse
Effect. There are no outstanding actions or suits concerning the assets of the Non-U.S.
Pension Plans or the Non-U.S. Benefit Plans. Each of the Non-U.S. Pension Plans is fully
funded on an ongoing basis as required by all laws applicable to such Non-U.S. Pension Plans
(using actuarial methods and assumptions as of the date of the valuations last filed with
the applicable Governmental Authorities and that are consistent with generally accepted
actuarial principles).



     Section 6.11. Consents or Approvals. No consent, approval or authorization of, or
filing, registration or qualification with, any Governmental Authority or any other Person is
required to be obtained or completed by any Company in connection with the execution, delivery or
performance of any of the Loan Documents, that has not already been obtained or completed, except
the filing and recording of financing statements and other documents necessary in order to perfect
the Liens of Agent and the Lenders in the Pledged Securities.



     Section 6.12. Solvency. Borrower has received consideration that is the reasonably
equivalent value of the obligations and liabilities that Borrower has incurred to Agent and the
Lenders. Borrower is not insolvent as defined in any applicable state, federal or relevant foreign
statute, nor will Borrower be rendered insolvent by the execution and delivery of the Loan
Documents to Agent and the Lenders. Borrower is not engaged or about to engage in any business or
transaction for which the assets retained by it are or will be an unreasonably small amount of
capital, taking into consideration the obligations to Agent and the Lenders incurred hereunder.
Borrower does not intend to, nor does it believe that it will, incur debts beyond its ability to
pay such debts as they mature.



     Section 6.13. Financial Statements. The Consolidated financial statements of Parent,
for the fiscal year ended December 31, 2008, and the unaudited Consolidated financial statements of
Parent for the fiscal quarter ended September 30, 2009, furnished to Agent and the Lenders, are
materially true and complete, have been prepared in accordance with GAAP, and fairly present the
financial condition of the Companies as of the dates of such financial statements and the results
of their operations for the periods then ending. Since the dates of such statements, there has
been no material adverse change in the financial condition, properties or business of the Companies
taken as a whole or any material change in the Company’s accounting procedures.



     Section 6.14. Regulations. No Company is engaged principally or as one of its
important activities, in the business of extending credit for the purpose of purchasing or carrying
any



39









 







“margin stock” (within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System of the United States of America). Neither the granting of the Term Loan (or any
conversion thereof) nor the use of the proceeds of the Term Loan will violate, or be inconsistent
with, the provisions of Regulation T, U or X or any other Regulation of such Board of Governors.



     Section 6.15. Material Agreements. Except as disclosed on Schedule 6.15
hereto, as of the Closing Date, no Company is a party to any (a) debt instrument (excluding the
Loan Documents); (b) lease (capital, operating or otherwise), whether as lessee or lessor
thereunder; (c) contract, commitment, agreement, or other arrangement involving the purchase or
sale of any inventory by it, or the license of any right to or by it; (d) contract, commitment,
agreement, or other arrangement with any of its “Affiliates” (as such term is defined in the
Securities Exchange Act of 1934, as amended) other than a Company; (e) management or employment
contract or contract for personal services with any of its Affiliates that is not otherwise
terminable at will or on less than ninety (90) days’ notice without liability; (f) collective
bargaining agreement; or (g) other contract, agreement, understanding, or arrangement with a third
party; that, as to subsections (a) through (g) above, if violated, breached, or terminated for any
reason, would require the future payment of an amount in excess of Ten Million Dollars
($10,000,000).



     Section 6.16. Intellectual Property. Each Company owns, or has the right to use, all
of the material patents, patent applications, industrial designs, designs, trademarks, service
marks, copyrights and licenses, and rights with respect to the foregoing necessary for the conduct
of its business without any known conflict with the rights of others.



     Section 6.17. Insurance. Each Company maintains with financially sound and reputable
insurers insurance with coverage and limits as required by law and as is customary with Persons
engaged in the same businesses as the Companies.



     Section 6.18. Accurate and Complete Statements. Neither the Loan Documents nor any
written statement made by any Company in connection with any of the Loan Documents contains any
untrue statement of a material fact or omits to state a material fact necessary to make the
statements contained therein or in the Loan Documents not misleading. After due inquiry by
Borrower, there is no known fact that any Company has not disclosed to Agent and the Lenders that
has or is likely to have a Material Adverse Effect.



     Section 6.19. Investment Company; Other Restrictions. No Company is (a) an
“investment company” or a company “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended, or (b) subject to any foreign, federal, state or local
statute or regulation limiting its ability to incur Indebtedness as contemplated herein.



     Section 6.20. Defaults. No Default or Event of Default exists hereunder, nor will
any begin to exist immediately after the execution and delivery hereof.



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ARTICLE VII. EVENTS OF DEFAULT




     Any of the following specified events shall constitute an Event of Default (each an “Event of
Default”):



     Section 7.1. Payments. If (a) the interest on the Term Loan, any fee, or any other
Obligation not listed in subpart (b) hereof, shall not be paid in full when due and payable or
within three Business Days thereafter, or (b) the principal of the Term Loan shall not be paid in
full when due and payable.



     Section 7.2. Special Covenants. If any Company or Credit Party shall fail or omit to
perform and observe Section 5.7, 5.8, 5.9, 5.11, 5.12, 5.13 or 5.21 hereof.



     Section 7.3. Other Covenants. If any Company or Credit Party shall fail or omit to
perform and observe any agreement or other provision (other than those referred to in Section 7.1
or 7.2 hereof) contained or referred to in this Agreement or any Related Writing that is on such
Company’s or Credit Party’s part, as the case may be, to be complied with, and that Default shall
not have been fully corrected within thirty (30) days after the earlier of (a) any Financial
Officer of such Company becomes aware of the occurrence thereof, or (b) the giving of written
notice thereof to Borrower by Agent or the Required Lenders that the specified Default is to be
remedied.



     Section 7.4. Representations and Warranties. If any representation, warranty or
statement made in or pursuant to this Agreement or any Related Writing or any other material
information furnished by any Company or Credit Party to Agent or the Lenders, or any thereof, shall
be false or erroneous in any material respect.



     Section 7.5. Cross Default.



     (a) If any Company or Credit Party shall default in the payment of principal or interest due
and owing under any Material Indebtedness Agreement beyond any period of grace provided with
respect thereto or in the performance or observance of any other agreement, term or condition
contained in any Material Indebtedness Agreement under which such obligation is created, if the
effect of such default is to allow the acceleration of the maturity of such Indebtedness or to
permit the holder thereof to cause such Indebtedness to become due prior to its stated maturity.



     (b) If a Default or an Event of Default (as each term is defined in the Parent Credit
Agreement) shall have occurred under the Parent Credit Agreement.



     Section 7.6. Default in Employee, Pension and Benefit Plan Compliance. The
occurrence of one or more ERISA Events or Material Defaults under Applicable Employee, Pension and
Benefit Plans that (a) the Required Lenders determine could have a Material Adverse Effect, or (b)
results in a Lien on any of the assets of any Company.



     Section 7.7. Change in Control. If any Change in Control shall occur.



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     Section 7.8. Judgments. There is entered against any Company or Credit Party:



     (a) a final judgment or order for the payment of money by a court of competent jurisdiction,
that remains unpaid or unstayed and undischarged for a period (during which execution shall not be
effectively stayed) of thirty (30) days after the date on which the right to appeal has expired,
provided that the aggregate of all such judgments for all such Companies and Credit Parties, shall
exceed Five Million Dollars ($5,000,000) (less any amount that will be covered by the proceeds of
insurance and is not subject to dispute by the insurance provider); or



     (b) any one or more non-monetary final judgments that are not covered by insurance, or, if
covered by insurance, for which the insurance company has not agreed to or acknowledged coverage,
and that, in either case, the Required Lenders reasonably determine have, or could be expected to
have, individually or in the aggregate, a Material Adverse Effect and, in either case, (i)
enforcement proceedings are commenced by the prevailing party or any creditor upon such judgment or
order, or (ii) there is a period of three consecutive Business Days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect.



     Section 7.9. Material Adverse Change. There shall have occurred any condition or
event that Agent or the Required Lenders determine has or is reasonably likely to have a Material
Adverse Effect.



     Section 7.10. Security. If any Lien granted in this Agreement or any other Loan
Document in favor of Agent, for the benefit of the Lenders, shall be determined to be (a) void,
voidable or invalid, or is subordinated or not otherwise given the priority contemplated by this
Agreement and Borrower (or the appropriate Credit Party) has failed to promptly execute appropriate
documents to correct such matters, or (b) unperfected as to any material amount of Collateral (as
determined by Agent, in its reasonable discretion) and Borrower (or the appropriate Credit Party)
has failed to promptly execute appropriate documents to correct such matters.



     Section 7.11. Validity of Loan Documents. If (a) any material provision, in the sole
opinion of Agent, of any Loan Document shall at any time cease to be valid, binding and enforceable
against any Credit Party; (b) the validity, binding effect or enforceability of any Loan Document
against any Credit Party shall be contested by any Credit Party; (c) any Credit Party shall deny
that it has any or further liability or obligation under any Loan Document; or (d) any Loan
Document shall be terminated, invalidated or set aside, or be declared ineffective or inoperative
or in any way cease to give or provide to Agent and the Lenders the benefits purported to be
created thereby.



     Section 7.12. Solvency. If any Company (other than a Dormant Subsidiary) or any
Credit Party shall (a) except as permitted pursuant to Section 5.12 hereof, discontinue business;
(b) generally not pay its debts as such debts become due; (c) make a general assignment for the
benefit of creditors; (d) apply for or consent to the appointment of an interim receiver, a
receiver, a receiver and manager, an administrator, sequestrator, monitor, a custodian, a trustee,
an interim trustee, liquidator, agent or other similar official of all or a substantial part of its
assets or of such



42









 







Company or Credit Party; (e) be adjudicated a debtor or insolvent or have entered
against it an order for relief under the Bankruptcy Code, or under any other bankruptcy insolvency,
liquidation, winding-up, corporate or similar statute or law, foreign, federal, state or
provincial, in any applicable jurisdiction, now or hereafter existing, as any of the foregoing may
be amended from time to time, or other applicable statute for jurisdictions outside of the United
States, as the case may be; (f) file a voluntary petition under the Bankruptcy Code or seek relief
under any bankruptcy or insolvency or analogous law in any jurisdiction outside of the United
States, or file a proposal or notice of intention to file such petition; (g) have an involuntary
proceeding under the Bankruptcy Code filed against it and the same shall not be controverted within
twenty (20) days, or shall continue undismissed for a period of sixty (60) days from commencement
of such proceeding or case; (h) file a petition, an answer, an application or a proposal seeking
reorganization or an arrangement with creditors or seeking to take advantage of any other law
(whether federal, provincial or state, or, if applicable, other jurisdiction) relating to relief of
debtors, or admit (by answer, by default or otherwise) the material allegations of a petition filed
against it in any bankruptcy, reorganization, insolvency or other proceeding (whether federal,
provincial or state, or, if applicable, other jurisdiction) relating to relief of debtors; (i)
suffer or permit to continue unstayed and in effect for sixty (60) consecutive days any judgment,
decree or order entered by a court of competent jurisdiction, that approves a petition or an
application or a proposal seeking its reorganization or appoints an interim receiver, a receiver
and manager, an administrator, custodian, trustee, interim trustee or liquidator of all or a
substantial part of its assets, or of such Company or Credit Party; (j) have an administrative
receiver appointed over the whole or substantially the whole of its assets, or of such Company or
Credit Party; (k) have assets, the value of which is less than its liabilities; or (l) have a
moratorium declared in respect of any of its Indebtedness, or any analogous procedure or step is
taken in any jurisdiction.



ARTICLE VIII. REMEDIES UPON DEFAULT




     Notwithstanding any contrary provision or inference herein or elsewhere:



     Section 8.1. Optional Defaults. If any Event of Default referred to in Section 7.1,
7.2, 7.3, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.10 or 7.11 hereof shall occur, Agent may, with the
consent of the Required Lenders, and shall, at the written request of the Required Lenders, give
written notice to Borrower to accelerate the maturity of all of the Obligations (if the Obligations
are not already due and payable), whereupon all of the Obligations shall become and thereafter be
immediately due and payable in full without any presentment or demand and without any further or
other notice of any kind, all of which are hereby waived by Borrower.



     Section 8.2. Automatic Defaults. If any Event of Default referred to in Section 7.12
hereof shall occur the principal of and interest then outstanding on the Term Loan, and all of the
other Obligations, shall thereupon become and thereafter be immediately due and payable in full (if
the Obligations are not already due and payable), all without any presentment, demand or notice of
any kind, which are hereby waived by Borrower.



     Section 8.3. Offsets. If there shall occur or exist any Event of Default referred to
in Section 7.12 hereof or if the maturity of the Obligations is accelerated pursuant to Section 8.1
or



43









 







8.2 hereof, each Lender shall have the right at any time to set off against, and to appropriate
and apply toward the payment of, any and all of the Obligations then owing by Borrower or a
Guarantor of Payment to such Lender (including, without limitation, any participation purchased or
to be purchased pursuant to Section 8.4 hereof), whether or not the same shall then have matured,
any and all deposit (general or special) balances and all other indebtedness then held or owing by
such Lender (including, without limitation, by branches and agencies or any affiliate of such
Lender, wherever located) to or for the credit or account of Borrower or any Guarantor of Payment,
all without notice to or demand upon Borrower or any other Person, all such notices and demands
being hereby expressly waived by Borrower.



     Section 8.4. Equalization Provisions. Each Lender agrees with the other Lenders
that, if it at any time shall obtain any Advantage over the other Lenders, or any thereof, in
respect of the Obligations (except under Article III hereof), such Lender shall purchase from the
other Lenders, for cash and at par, such additional participation in the Obligations as shall be
necessary to nullify the Advantage. If any such Advantage resulting in the purchase of an
additional participation as aforesaid shall be recovered in whole or in part from the Lender
receiving the Advantage, each such purchase shall be rescinded, and the purchase price restored
(but without interest unless the Lender receiving the Advantage is required to pay interest on the
Advantage to the Person recovering the Advantage from such Lender) ratably to the extent of the
recovery. Each Lender further agrees with the other Lenders that, if it at any time shall receive
any payment for or on behalf of Borrower on any Indebtedness owing by Borrower to that Lender
(whether by voluntary payment, by realization upon security, by reason of offset of any deposit or
other Indebtedness, by counterclaim or cross-action, by enforcement of any right under any Loan
Document, or otherwise), it shall apply such payment first to any and all Indebtedness owing by
Borrower to that Lender pursuant to this Agreement (including, without limitation, any
participation purchased or to be purchased pursuant to this Section 8.4 or any other section of
this Agreement). Each Credit Party agrees that any Lender so purchasing a participation from the
other Lenders, or any thereof, pursuant to this Section 8.4 may exercise all of its rights of
payment (including the right of set-off) with respect to such participation as fully as if such
Lender were a direct creditor of such Credit Party in the amount of such participation.



     Section 8.5. Other Remedies. The remedies in this Article VIII are in addition to,
not in limitation of, any other right, power, privilege, or remedy, either in law, in equity, or
otherwise, to which the Lenders may be entitled.
Agent shall exercise the rights under this Article VIII and all other collection efforts on behalf
of the Lenders and no Lender shall act independently with respect thereto, except as otherwise
specifically set forth in this Agreement.



     Section 8.6. Application of Proceeds.



     (a) Payments Prior to Exercise of Remedies. Prior to the exercise by Agent, on behalf
of the Lenders, of remedies under this Agreement or the other Loan Documents, all monies received
by Agent shall be applied, unless otherwise required by the terms of the other Loan Documents or by
applicable law, to the Term Loan (provided that Agent shall have the right at all times to apply
any payment received from Borrower first to the payment of all obligations (to the extent not paid
by Borrower) incurred by Agent pursuant to Section 10.5 hereof and to the payment of Related
Expenses).



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     (b) Payments Subsequent to Exercise of Remedies. After the exercise by Agent or the
Required Lenders of remedies under this Agreement or the other Loan Documents, all monies received
by Agent shall be applied, unless otherwise required by the terms of the other Loan Documents or by
applicable law, as follows:




     (i) first, to the payment of all obligations (to the extent not paid by Borrower)
incurred by Agent pursuant to Section 10.5 hereof and to the payment of Related Expenses;




     (ii) second, to the payment pro rata of (A) interest then accrued and payable on the
Term Loan, and (B) any fees then accrued and payable to Agent;




     (iii) third:




     (A) with respect to monies received from the liquidation of the Collateral, for
payment of (1) principal outstanding on the Loans and the Letter of Credit Exposure,
on a pro rata basis to the Lenders, based upon each such Lender’s Commitment
Percentage, provided that the amounts payable in respect of the Letter of Credit
Exposure shall be held and applied by Agent as security for the reimbursement
obligations in respect thereof, and, if any Letter of Credit shall expire without
being drawn, then the amount with respect to such Letter of Credit shall be
distributed to the Lenders, on a pro rata basis based on such Lender’s Commitment
Percentage, and (2) the Indebtedness under any Hedge Agreement with a Lender, such
amount to be based upon the net termination obligation of Borrower under such Hedge
Agreement; with such payment to be pro rata among subparts (1) and (2) hereof, based
upon the Collateral Percentage of each such subpart (as used herein, the “Collateral
Percentage” for subparts (1) and (2) hereof (each a “Subpart”) means that percentage
determined by dividing the amount of the applicable Subpart by the aggregate amount
of all Subparts combined, as in effect on the last day of the Commitment Period);
and




     (B) with respect to all other monies received by Agent, for payment of
principal outstanding on the Loans and the Letter of Credit Exposure, on a pro rata
basis to the Lenders, based upon each such Lender’s Commitment Percentage, provided
that the amounts payable in respect of the Letter of Credit Exposure shall be held
and applied by Agent as security for the reimbursement obligations in respect
thereof, and, if any Letter of Credit shall expire without being drawn, then the
amount with respect to such Letter of Credit shall be distributed to the Lenders, on
a pro rata basis based on such Lender’s Commitment Percentage; and




     (iv) finally, any remaining surplus after all of the Secured Obligations have been paid
in full, to Borrower or to whomsoever shall be lawfully entitled thereto.



45









 





ARTICLE IX. THE AGENT




     The Lenders authorize KeyBank and KeyBank hereby agrees to act as agent for the Lenders in
respect of this Agreement upon the terms and conditions set forth elsewhere in this Agreement, and
upon the following terms and conditions:



     Section 9.1. Appointment and Authorization. Each Lender hereby irrevocably appoints
and authorizes Agent to take such action as agent on its behalf and to exercise such powers
hereunder as are delegated to Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. Neither Agent nor any of its affiliates, directors, officers,
attorneys or employees shall (a) be liable for any action taken or omitted to be taken by it or
them hereunder or in connection herewith, except for its or their own gross negligence or willful
misconduct (as determined by a court of competent jurisdiction), or be responsible in any manner to
any of the Lenders for the effectiveness, enforceability, genuineness, validity or due execution of
this Agreement or any other Loan Documents, (b) be under any obligation to any Lender to ascertain
or to inquire as to the performance or observance of any of the terms, covenants or conditions
hereof or thereof on the part of Borrower or any other Company, or the financial condition of
Borrower or any other Company, or (c) be liable to any of the Companies for consequential damages
resulting from any breach of contract, tort or other wrong in connection with the negotiation,
documentation, administration or collection of the Term Loan or any of the Loan Documents.
Notwithstanding any provision to the contrary contained in this Agreement or in any other Loan
Document, Agent shall not have any duty or responsibility except those expressly set forth herein,
nor shall Agent have or be deemed to have any fiduciary relationship with any Lender or
participant, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against
Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent”
herein and in other Loan Documents with reference to Agent is not intended to connote any fiduciary
or other implied (or express) obligations arising under agency doctrine of any applicable law.
Instead, such term is used merely as a matter of market custom, and is intended to create or
reflect only an administrative relationship between independent contracting parties.



     Section 9.2. Note Holders. Agent may treat the payee of any Term Note as the holder
thereof (or, if there is no Term Note, the holder of the interest as reflected on the books and
records of Agent) until written notice of transfer shall have been filed with Agent, signed by such
payee and in form satisfactory to Agent.



     Section 9.3. Consultation With Counsel. Agent may consult with legal counsel
selected by Agent and shall not be liable for any action taken or suffered in good faith by Agent
in accordance with the opinion of such counsel.



     Section 9.4. Documents. Agent shall not be under any duty to examine into or pass
upon the validity, effectiveness, genuineness or value of any Loan Document or any other Related
Writing furnished pursuant hereto or in connection herewith or the value of any collateral obtained
hereunder, and Agent shall be entitled to assume that the same are valid, effective and genuine and
what they purport to be.



46









 





     Section 9.5. Agent and Affiliates. KeyBank and its affiliates may make loans to,
issue letters of credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting or other business
with the Companies and Affiliates as though KeyBank were not Agent hereunder and without notice to
or consent of any Lender. Each Lender acknowledges that, pursuant to such activities, KeyBank or
its affiliates may receive information regarding any Company or any Affiliate (including
information that may be subject to confidentiality obligations in favor of such Company or such
Affiliate) and acknowledge that Agent shall be under no obligation to provide such information to
other Lenders. With respect to the Term Loan, KeyBank and its affiliates shall have the same
rights and powers under this Agreement as any other Lender and may exercise the same as though
KeyBank were not Agent, and the terms “Lender” and “Lenders” include KeyBank and its affiliates, to
the extent applicable, in their individual capacities.



     Section 9.6. Knowledge or Notice of Default. Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default unless Agent has received
written notice from a Lender or Borrower referring to this Agreement, describing such Default or
Event of Default and stating that such notice is a “notice of default”. In the event that Agent
receives such a notice, Agent shall give notice thereof to the Lenders. Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably directed by the
Required Lenders (or, if so specified by this Agreement, all Lenders); provided that, unless and
until Agent shall have received such directions, Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default or Event of Default
as it shall deem advisable, in its discretion, for the protection of the interests of the Lenders.



     Section 9.7. Action by Agent. Subject to the other terms and conditions hereof, so
long as Agent shall be entitled, pursuant to Section 9.6 hereof, to assume that no Default or Event
of Default shall have occurred and be continuing, Agent shall be entitled to use its discretion
with respect to exercising or refraining from
exercising any rights that may be vested in it by, or with respect to taking or refraining from
taking any action or actions that it may be able to take under or in respect of, this Agreement.
Agent shall incur no liability under or in respect of this Agreement by acting upon any notice,
certificate, warranty or other paper or instrument believed by it to be genuine or authentic or to
be signed by the proper party or parties, or with respect to anything that it may do or refrain
from doing in the reasonable exercise of its judgment, or that may seem to it to be necessary or
desirable in the premises. Without limiting the foregoing, no Lender shall have any right of
action whatsoever against Agent as a result of Agent’s acting or refraining from acting hereunder
in accordance with the instructions of the Required Lenders.



     Section 9.8. Release of Guarantor of Payment or Pledge of Stock. In the event of a
merger, sale of assets or other transaction permitted pursuant to Section 5.12 hereof and so long
as there is no Default or Event of Default existing, Agent, at the request and expense of Borrower,
is hereby authorized by the Lenders to release, in connection therewith, one or more Guarantors of
Payment or pledge of stock, as appropriate, upon the written request of Borrower.



47









 





     Section 9.9. Delegation of Duties. Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall
be entitled to advice of counsel and other consultants or experts concerning all matters pertaining
to such duties. Agent shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful misconduct, as
determined by a court of competent jurisdiction.



     Section 9.10. Indemnification of Agent. The Lenders agree to indemnify Agent (to the
extent not reimbursed by Borrower) ratably, according to their respective Commitment Percentages,
from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including attorneys’ fees and expenses) or disbursements of any
kind or nature whatsoever that may be imposed on, incurred by or asserted against Agent in its
capacity as agent in any way relating to or arising out of this Agreement or any Loan Document or
any action taken or omitted by Agent with respect to this Agreement or any Loan Document, provided
that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees and expenses) or
disbursements resulting from Agent’s gross negligence or willful misconduct as determined by a
court of competent jurisdiction, or from any action taken or omitted by Agent in any capacity other
than as agent under this Agreement or any other Loan Document. No action taken in accordance with
the directions of the Required Lenders shall be deemed to constitute gross negligence or willful
misconduct for purposes of this Section 9.10. The undertaking in this Section 9.10 shall survive
repayment of the Term Loan, cancellation of the Term Notes, if any, any foreclosure under, or
modification, release or discharge of, any or all of the Loan Documents, termination of this
Agreement and the resignation or replacement of the agent.



     Section 9.11. Successor Agent. Agent may resign as agent hereunder by giving not
fewer than thirty (30) days prior written notice to
Borrower and the Lenders. If Agent shall resign under this Agreement, then either (a) the Required
Lenders shall appoint from among the Lenders a successor agent for the Lenders (with the consent of
Borrower so long as an Event of Default does not exist and which consent shall not be unreasonably
withheld), or (b) if a successor agent shall not be so appointed and approved within the thirty
(30) day period following Agent’s notice to the Lenders of its resignation, then Agent shall
appoint a successor agent that shall serve as agent until such time as the Required Lenders appoint
a successor agent. Upon its appointment, such successor agent shall succeed to the rights, powers
and duties as agent, and the term “Agent” means such successor effective upon its appointment, and
the former agent’s rights, powers and duties as agent shall be terminated without any other or
further act or deed on the part of such former agent or any of the parties to this Agreement.



     Section 9.12. Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Credit Party, (a) Agent (irrespective of
whether the principal of the Term Loan shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether Agent shall have made any demand on Borrower)
shall be entitled and empowered, by intervention in such proceeding or otherwise, to (i) file and
prove a claim for the whole amount of the principal and interest owing and unpaid in



48









 







respect of the
Term Loan, and all other Obligations that are owing and unpaid and to file such other documents as
may be necessary or advisable in order to have the claims of the Lenders and Agent (including any
claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and
Agent and their respective agents and counsel and all other amounts due the Lenders and Agent)
allowed in such judicial proceedings, and (ii) collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same; and (b) any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Lender to make such payments to Agent and, in the
event that Agent shall consent to the making of such payments directly to the Lenders, to pay to
Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Agent
and its agents and counsel, and any other amounts due Agent. Nothing contained herein shall be
deemed to authorize Agent to authorize or consent to or accept or adopt on behalf of any Lender any
plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the
rights of any Lender or to authorize Agent to vote in respect of the claim of any Lender in any
such proceeding.



     Section 9.13. No Reliance on Agent’s Customer Identification Program. Each Lender
acknowledges and agrees that neither such Lender, nor any of its affiliates, participants or
assignees, may rely on Agent to carry out such Lender’s or its affiliate’s, participant’s or
assignee’s customer identification program, or other obligations required or imposed under or
pursuant to the Patriot Act or the regulations thereunder, including the regulations contained in
31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other
anti-terrorism law, including any programs involving any of the following items relating to or in
connection with Borrower, its Affiliates or agents, the Loan Documents or the transactions
hereunder: (a) any identity verification procedures, (b) any record keeping, (c) any comparisons
with government lists, (d) any customer notices or (e) any other procedures required under the CIP
Regulations or such other laws.



ARTICLE X. MISCELLANEOUS




     Section 10.1. Lenders’ Independent Investigation. Each Lender, by its signature to
this Agreement, acknowledges and agrees that Agent has made no representation or warranty, express
or implied, with respect to the creditworthiness, financial condition, or any other condition of
any Company or with respect to the statements contained in any information memorandum furnished in
connection herewith or in any other oral or written communication between Agent and such Lender.
Each Lender represents that it has made and shall continue to make its own independent
investigation of the creditworthiness, financial condition and affairs of the Companies in
connection with the extension of credit hereunder, and agrees that Agent has no duty or
responsibility, either initially or on a continuing basis, to provide any Lender with any credit or
other information with respect thereto (other than such notices as may be expressly required to be
given by Agent to the Lenders hereunder), whether coming into its possession before the first
Credit Event hereunder or at any time or times thereafter. Each Lender further represents that it
has reviewed each of the Loan Documents.



49









 





     Section 10.2. No Waiver; Cumulative Remedies. No omission or course of dealing on
the part of Agent, any Lender or the holder of any Term Note (or, if there is no Term Note, the
holder of the interest as reflected on the books and records of Agent) in exercising any right,
power or remedy hereunder or under any of the Loan Documents shall operate as a waiver thereof; nor
shall any single or partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy hereunder or under any
of the Loan Documents. The remedies herein provided are cumulative and in addition to any other
rights, powers or privileges held under any of the Loan Documents or by operation of law, by
contract or otherwise.



     Section 10.3. Amendments, Waivers and Consents.



     (a) General Rule. No amendment, modification, termination, or waiver of any provision
of any Loan Document nor consent to any variance therefrom, shall be effective unless the same
shall be in writing and signed by the Required Lenders and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given.



     (b) Exceptions to the General Rule. Notwithstanding the provisions of subsection (a)
of this Section 10.3:




     (i) Requirements. Subject to subpart (ii) below, no amendment, modification,
waiver or consent shall (A) extend or increase any Lender’s portion of the Term Loan without
the written consent of such Lender, (B) extend the date scheduled for payment of
any principal (excluding mandatory prepayments) of or interest on the Term Loan without the
written consent of each Lender directly affected thereby, (C) reduce the principal amount of
the Term Loan or the stated rate of interest thereon (provided that the institution of the
Default Rate or post default interest and a subsequent removal of the Default Rate or post
default interest shall not constitute a decrease in interest rate pursuant to this Section
10.3), without the consent of each Lender directly affected thereby (except for periodic
adjustments of interest rates resulting from a change in the Applicable Margin as provided
for in this Agreement), (D) change any percentage voting requirement, voting rights, or the
Required Lenders definition in this Agreement without the unanimous consent of the Lenders,
(E) release Borrower or any Guarantor of Payment except in connection with a merger or sale
of assets permitted pursuant to Section 5.12 hereof without the unanimous consent of the
Lenders, (F) release all or substantially all of the Collateral, securing the Secured
Obligations, except as specifically permitted hereunder, without the unanimous consent of
the Lenders or (G) amend this Section 10.3 or Section 8.5 or 8.7 hereof without the
unanimous consent of the Lenders.




     (ii) Provisions Relating to Special Rights and Duties. No provision of this
Agreement affecting Agent in its capacity as such shall be amended, modified or waived
without the consent of Agent.



     (c) Replacement of Non-Consenting Lender. If, in connection with any proposed
amendment, waiver or consent hereunder, (i) the consent of all Lenders is required, but only the
consent of Required Lenders is obtained, or (ii) the consent of Required Lenders is required, but




50












 




the consent of the Required Lenders is not obtained (any Lender withholding consent as described in
subsections (a), (b) and (c) hereof being referred to as a “Non-Consenting Lender”), then, so long
as Agent is not the Non-Consenting Lender, Agent may, at the sole expense of Borrower, upon notice
to such Non-Consenting Lender and Borrower, require such Non-Consenting Lender to assign and
delegate, without recourse (in accordance with the restrictions contained in Section 10.10 hereof)
all of its interests, rights and obligations under this Agreement to an Eligible Transferee that
shall assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that such Non-Consenting Lender shall have received payment of an amount
equal to the outstanding principal of its portion of the Term Loan, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder, from such Eligible Transferee (to the
extent of such outstanding principal and accrued interest and fees) or Borrower (in the case of all
other amounts, including any breakage compensation under Article III hereof).




     (d) Generally. Notice of amendments, waivers or consents ratified by the Lenders
hereunder shall be forwarded by Agent to all of the Lenders. Each Lender or other holder of a Term
Note, or if there is no Term Note, the holder of the interest as reflected on the books and records
of Agent (or interest in the Term Loan) shall be bound by any amendment, waiver or consent obtained
as authorized by this Section 10.3, regardless of its failure to agree thereto.



     Section 10.4. Notices. All notices, requests, demands and other communications
provided for hereunder shall be in writing and, if to Borrower, mailed or delivered to it,
addressed to it at the address specified on the signature pages of this Agreement, if to a Lender,
mailed or delivered to it, addressed to the address of such Lender specified on the signature pages
of this Agreement, or, as to each party, at such other address as shall be designated by such party
in a written notice to each of the other parties. All notices, statements, requests, demands and
other communications provided for hereunder shall be given by overnight delivery or first class
mail with postage prepaid by registered or certified mail, addressed as aforesaid, or sent by
facsimile with telephonic confirmation of receipt (if received during a Business Day, otherwise the
following Business Day). All notices hereunder shall not be effective until received. For
purposes of Article II hereof, Agent shall be entitled to rely on telephonic instructions from any
person that Agent in good faith believes is an Authorized Officer and Borrower shall hold Agent and
each Lender harmless from any loss, cost or expense resulting from any such reliance.



     Section 10.5. Costs, Expenses and Taxes. Borrower agrees to pay on demand all
reasonable costs and expenses of Agent and all Related Expenses, including but not limited to (a)
syndication, administration, travel and out-of-pocket expenses, including but not limited to
attorneys’ fees and expenses, of Agent in connection with the preparation, negotiation and closing
of the Loan Documents and the administration of the Loan Documents, and the collection and
disbursement of all funds hereunder and the other instruments and documents to be delivered
hereunder, (b) extraordinary expenses of Agent in connection with the administration of the Loan
Documents and the other instruments and documents to be delivered hereunder, and (c) the reasonable
fees and out-of-pocket expenses of special counsel for Agent, with respect to the foregoing, and of
local counsel, if any, who may be retained by said special counsel with respect thereto. Borrower
also agrees to pay on demand all costs and expenses (including Related Expenses) of Agent and the
Lenders, including reasonable attorneys’ fees and



51









 







expenses, in connection with the restructuring or enforcement of the Obligations, this Agreement or
any Related Writing. In addition, Borrower shall pay any and all stamp, transfer, documentary and
other taxes, assessments, charges and fees payable or determined to be payable in connection with
the execution and delivery of the Loan Documents, and the other instruments and documents to be
delivered hereunder, and agrees to hold Agent and each Lender harmless from and against any and all
liabilities with respect to or resulting from any delay in paying or failure to pay such taxes or
fees. All obligations provided for in this Section 10.5 shall survive any termination of this
Agreement.



     Section 10.6. Indemnification. Borrower agrees to defend, indemnify and hold
harmless Agent and the Lenders (and their respective affiliates, officers, directors, attorneys,
agents and employees) from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees) or disbursements
of any kind or nature whatsoever that may be imposed on, incurred by or asserted against Agent or
any Lender in connection with any investigative, administrative or judicial proceeding (whether or
not such Lender or Agent shall be designated a party thereto) or any other claim by any Person
relating to or arising out of any Loan Document or any actual or proposed use of proceeds of the
Term Loan or any of the Obligations, or any activities of any Company or its Affiliates; provided
that no Lender nor Agent shall have the right to be indemnified under this Section 10.6 for its own
gross negligence or willful misconduct as determined by a court of competent jurisdiction. All
obligations provided for in this Section 10.6 shall survive any termination of this Agreement.



     Section 10.7. Obligations Several; No Fiduciary Obligations. The obligations of the
Lenders hereunder are several and not joint. Nothing contained in this Agreement and no action
taken by Agent or the Lenders pursuant hereto shall be deemed to constitute Agent or the Lenders a
partnership, association, joint venture or other entity. No default by any Lender hereunder shall
excuse the other Lenders from any obligation under this Agreement; but no Lender shall have or
acquire any additional obligation of any kind by reason of such default. The relationship between
Borrower and the Lenders with respect to the Loan Documents and the Related Writings is and shall
be solely that of debtor and creditors, respectively, and neither Agent nor any Lender shall have
any fiduciary obligation toward any Credit Party with respect to any such documents or the
transactions contemplated thereby.



     Section 10.8. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts and by facsimile
signature, each of which counterparts when so executed and delivered shall be deemed to be an
original and all of which taken together shall constitute but one and the same agreement.



     Section 10.9. Binding Effect; Borrower’s Assignment. This Agreement shall become
effective when it shall have been executed by Borrower, Agent and each Lender and thereafter shall
be binding upon and inure to the benefit of Borrower, Agent and each of the Lenders and their
respective successors and assigns, except that Borrower shall not have the right to assign its
rights hereunder or any interest herein without the prior written consent of Agent and all of the
Lenders.



     Section 10.10. Lender Assignments.



52









 





     (a) Assignments of Commitments. Each Lender shall have the right at any time or times
to assign to an Eligible Transferee (other than to a Lender that shall not be in compliance with
this Agreement), without recourse, all or a percentage of all of the following: (i) such Lender’s
portion of the Term Loan, (ii) such Lender’s Term Note, and (iii) such Lender’s interest in any
participation purchased pursuant to Section 8.5 hereof.



     (b) Prior Consent. No assignment may be consummated pursuant to this Section 10.10
without the prior written consent of Borrower and Agent (other than an assignment by any Lender to
any affiliate of such Lender which affiliate is an Eligible Transferee and either wholly-owned by a
Lender or is wholly-owned by a Person that wholly owns, either directly or indirectly, such Lender,
or to another Lender), which consent of Borrower and Agent shall not be unreasonably withheld;
provided that the consent of Borrower shall not be required if, at the time of the proposed
assignment, any Default or Event of Default shall then exist. Anything herein to the contrary
notwithstanding, any Lender may at any time make a collateral assignment of all or any portion of
its rights under the Loan Documents to a Federal Reserve Bank, and no such assignment shall release
such assigning Lender from its obligations hereunder.



     (c) Minimum Amount. Each such assignment shall be in a minimum amount of the lesser
of Five Million Dollars ($5,000,000) of the assignor’s portion of the Term Loan and interest herein
or the entire amount of the assignor’s portion of the Term Loan and interest herein.



     (d) Assignment Fee. Unless the assignment shall be to an affiliate of the assignor or
the assignment shall be due to merger of the assignor or for regulatory purposes, either the
assignor or the assignee shall remit to Agent, for its own account, an administrative fee of Three
Thousand Five Hundred Dollars ($3,500).



     (e) Assignment Agreement. Unless the assignment shall be due to merger of the
assignor or a collateral assignment for regulatory purposes, the assignor shall (i) cause the
assignee to execute and deliver to Borrower and Agent an Assignment Agreement, and (ii) execute and
deliver, or cause the assignee to execute and deliver, as the case may be, to Agent such additional
amendments, assurances and other writings as Agent may reasonably require.



     (f) Non-U.S. Assignee. If the assignment is to be made to an assignee that is
organized under the laws of any jurisdiction other than the United States or any state thereof, the
assignor Lender shall cause such assignee, at least five Business Days prior to the effective date
of such assignment, (i) to represent to the assignor Lender (for the benefit of the assignor
Lender, Agent and Borrower) that under applicable law and treaties no taxes will be required to be
withheld by Agent, Borrower or the assignor with respect to any payments to be made to such
assignee in respect of the Term Loan hereunder, (ii) to furnish to the assignor Lender (and, in the
case of any assignee registered in the Register (as defined below), Agent and Borrower) either U.S.
Internal Revenue Service Form W-8ECI or U.S. Internal Revenue Service Form W-8BEN, as applicable
(wherein such assignee claims entitlement to complete exemption from U.S. federal withholding tax
on all payments hereunder), and (iii) to agree (for the benefit of the assignor, Agent and
Borrower) to provide to the assignor Lender (and, in the case of any assignee



53









 







registered in the Register, to Agent and Borrower) a new Form W-8ECI or Form W-8BEN, as applicable,
upon the expiration or obsolescence of any previously delivered form and comparable statements in
accordance with applicable U.S. laws and regulations and amendments duly executed and completed by
such assignee, and to comply from time to time with all applicable U.S. laws and regulations with
regard to such withholding tax exemption.



     (g) Deliveries by Borrower. Upon satisfaction of all applicable requirements
specified in subsections (a) through (f) above, Borrower shall execute and deliver (i) to Agent,
the assignor and the assignee, any consent or release (of all or a portion of the obligations of
the assignor) required to be delivered by Borrower in connection with the Assignment Agreement, and
(ii) to the assignee, if requested, and the assignor, if applicable, an appropriate Term Note or
Term Notes. After delivery of the new Term Note or Term Notes, the assignor’s Term Note or Term
Notes, if any, being replaced shall be returned to Borrower marked “replaced”.



     (h) Effect of Assignment. Upon satisfaction of all applicable requirements set forth
in subsections (a) through (g) above, and any other condition contained in this Section 10.10, (i)
the assignee shall become and thereafter be deemed to be a “Lender” for the purposes of this
Agreement, (ii) the assignor shall be released from its obligations hereunder to the extent that
its interest has been assigned, (iii) in the event that the assignor’s entire interest has been
assigned, the assignor shall cease to be and thereafter shall no longer be deemed to be a “Lender”
and (iv) the signature pages hereto and Schedule 1 hereto shall be automatically amended,
without further action, to reflect the result of any such assignment.



     (i) Agent to Maintain Register. Agent shall maintain at the address for notices
referred to in Section 10.4 hereof a copy of each Assignment Agreement delivered to it and a
register (the “Register”) for the recordation of the names and addresses of the Lenders, and
principal amount of the Term Loan owing to, each Lender from time to time. The entries in the
Register shall be conclusive, in the absence of manifest error, and Borrower, Agent and the Lenders
may treat each Person whose name is recorded in the Register as the owner of the Term Loan recorded
therein for all purposes of this Agreement. The Register shall be available for inspection by
Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice.



     Section 10.11. Sale of Participations. Any Lender may, in the ordinary course of its
commercial banking business and in accordance with applicable law, at any time sell participations
to one or more Eligible Transferees (each a “Participant”) in all or a portion of its rights or
obligations under this Agreement and the other Loan Documents (including, without limitation, all
or a portion of the Term Loan and participations owing to it and the Term Note, if any, held by
it); provided that:



     (a) any such Lender’s obligations under this Agreement and the other Loan Documents shall
remain unchanged;



     (b) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations;



54









 





     (c) the parties hereto shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement and each of the other
Loan Documents;



     (d) such Participant shall be bound by the provisions of Section 8.5 hereof, and the Lender
selling such participation shall obtain from such Participant a written confirmation of its
agreement to be so bound; and



     (e) no Participant (unless such Participant is itself a Lender) shall be entitled to require
such Lender to take or refrain from taking action under this Agreement or under any other Loan
Document, except that such Lender may agree with such Participant that such Lender will not,
without such Participant’s consent, take action of the type described as follows:




     (i) increase the portion of the participation amount of any Participant over the amount
thereof then in effect, without the written consent of each Participant affected thereby; or




     (ii) reduce the principal amount of or extend the time for any payment of principal of
the Term Loan, or reduce the rate of interest or extend the time for payment of interest on
the Term Loan, or reduce the commitment fee, without the written consent of each Participant
affected thereby.


Borrower agrees that any Lender that sells participations pursuant to this Section 10.11 shall
still be entitled to the benefits of Article III hereof, notwithstanding any such transfer;
provided that the obligations of Borrower shall not increase as a result of such transfer and
Borrower shall have no obligation to any Participant.




     Section 10.12. Patriot Act Notice. Each Lender and Agent (for itself and not on
behalf of any other party) hereby notifies the Credit Parties that, pursuant to the requirements of
the Patriot Act, such Lender and Agent are required to obtain, verify and record information that
identifies the Credit Parties, which information includes the name and address of each of the
Credit Parties and other information that will allow such Lender or Agent, as applicable, to
identify the Credit Parties in accordance with the Patriot Act. Borrower shall provide, to the
extent commercially reasonable, such information and take such actions as are reasonably requested
by Agent or a Lender in order to assist Agent or such Lender in maintaining compliance with the
Patriot Act.



     Section 10.13. Severability of Provisions; Captions; Attachments. Any provision of
this Agreement that shall be prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction. The several captions to sections and subsections herein are
inserted for convenience only and shall be ignored in interpreting the provisions of this
Agreement. Each schedule or exhibit attached to this Agreement shall be incorporated herein and
shall be deemed to be a part hereof.



55









 





     Section 10.14. Investment Purpose. Each of the Lenders represents and warrants to
Borrower that it is entering into this Agreement with the present intention of acquiring any Term
Note issued pursuant hereto (or, if there is no Term Note, the interest as reflected on the books
and records of Agent) for investment purposes only and not for the purpose of distribution or
resale, it being understood, however, that each Lender shall at all times retain full control over
the disposition of its assets.



     Section 10.15. Entire Agreement. This Agreement, any Term Note and any other Loan
Document or other agreement, document or instrument attached hereto or executed on or as of the
Closing Date integrate all of the terms and conditions mentioned herein or incidental hereto and
supersede all oral representations and negotiations and prior writings with respect to the subject
matter hereof.



     Section 10.16. General Limitation of Liability. No claim may be made by any Credit
Party, any Lender, Agent or any other Person against Agent, or any other Lender or the affiliates,
directors, officers, employees, attorneys or agents of any of them for any damages other than
actual compensatory damages in respect of any claim for breach of contract or any other theory of
liability arising out of or related to the transactions contemplated by this Agreement or any of
the other Loan Documents, or any act, omission or event occurring in connection therewith; and
Borrower, each Lender, Agent hereby, to the fullest extent permitted under applicable law, waive,
release and agree not to sue or counterclaim upon any such claim for any special, consequential or
punitive damages, whether or not accrued and whether or not known or suspected to exist in their
favor.



     Section 10.17. No Duty. All attorneys, accountants, appraisers, consultants and
other professional persons (including the firms or other entities on behalf of which any such
Person may act) retained by Agent or any Lender with respect to the transactions contemplated by
the Loan Documents shall have the right to act exclusively in the interest of Agent or such Lender,
as the case may be, and shall have no duty of disclosure, duty of loyalty, duty of care, or other
duty or obligation of any type or nature whatsoever to Borrower, any other Companies, or to any
other Person, with respect to any matters within the scope of such representation or related to
their activities in connection with such representation. Borrower agrees, on behalf of itself and
its Subsidiaries, not to assert any claim or counterclaim against any such persons with regard to
such matters, all such claims and counterclaims, now existing or hereafter arising, whether known
or unknown, foreseen or unforeseeable, being hereby waived, released and forever discharged.



     Section 10.18. Legal Representation of Parties. The Loan Documents were negotiated
by the parties with the benefit of legal representation and any rule of construction or
interpretation otherwise requiring this Agreement or any other Loan Document to be construed or
interpreted against any party shall not apply to any construction or interpretation hereof or
thereof.



56









 





     Section 10.19. Currency.



     (a) Currency Equivalent Generally. For the purposes of making valuations or
computations under this Agreement (but not for the purposes of the preparation of any financial
statements delivered pursuant hereto), unless expressly provided otherwise, where a reference is
made to a dollar amount the amount is to be considered as the amount in Dollars and, therefor, each
other currency shall be converted into the Dollar Equivalent.



     (b) Judgment Currency. If Agent, on behalf of the Lenders, or any other holder of the
Obligations (the “Applicable Creditor”) obtains a judgment or judgments against any Credit Party in
respect of any sum adjudged to be due to Agent or the Lenders hereunder or under the Term Notes
(the “Judgment Amount”) in a currency (the “Judgment Currency”) other than the currency (the
“Original Currency”) in which such sum is stated to be due hereunder, the obligations of such
Credit Party in connection with such judgment shall be discharged only to the extent that, on the
Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the
Judgment Currency, such Applicable Creditor may, in accordance with the normal banking procedures
in the relevant jurisdiction, purchase the Original Currency with the Judgment Currency; if the
amount of Original Currency so purchased is less than the amount of Original Currency that could
have been purchased with the Judgment Amount on the date or dates the Judgment Amount (excluding
the portion of the Judgment Amount that has accrued as a result of the failure of such Credit Party
to pay the sum originally due hereunder when it was originally due and owing to Agent or the
Lenders hereunder) was originally due and owing to Agent or the Lenders hereunder (the “Original
Due Date”) (the “Loss”), such Credit Party agrees as a separate obligation and notwithstanding any
such judgment, to indemnify Agent or such Lender, as the case may be, against such Loss, and if the
amount of Original Currency so purchased exceeds the amount of Original Currency that could have
been purchased with the Judgment Amount on the Original Due Date, Agent or such Lender agrees to
remit such excess to such Credit Party. For purposes of determining the equivalent in one currency
of another currency as provided in this Section 10.19, such amount shall include any premium and
costs payable in connection with the conversion into or from any currency. The obligations of
Borrower contained in this Section 10.19 shall survive the termination of this Agreement and the
payment of all other amounts owing hereunder.



     Section 10.20. Governing Law; Submission to Jurisdiction.



     (a) Governing Law. This Agreement, each of the Term Notes and any Related Writing
(except as otherwise set forth in any Loan Document executed by a Non-U.S. Subsidiary) shall be
governed by and construed in accordance with the laws of the State of Ohio and the respective
rights and obligations of Borrower, Agent, and the Lenders shall be governed by Ohio law, without
regard to principles of conflicts of laws.



     (b) Submission to Jurisdiction. Borrower hereby irrevocably submits to the
non-exclusive jurisdiction of any Ohio state or federal court sitting in Cleveland, Ohio, over any
action or proceeding arising out of or relating to this Agreement, the Obligations or any Related
Writing (except as otherwise set forth in any Loan Document executed by a Non-U.S. Subsidiary), and
Borrower hereby irrevocably agrees that all claims in respect of such action or



57









 







proceeding may be heard and determined in such Ohio state or federal court. Borrower, on behalf of
itself and its Subsidiaries, hereby irrevocably waives, to the fullest extent permitted by law, any
objection it may now or hereafter have to the laying of venue in any action or proceeding in any
such court as well as any right it may now or hereafter have to remove such action or proceeding,
once commenced, to another court on the grounds of FORUM NON CONVENIENS or otherwise. Borrower
agrees that a final, non-appealable judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law.



[Remainder of page left intentionally blank]





58









 








     JURY TRIAL WAIVER. TO THE EXTENT PERMITTED BY LAW, BORROWER, AGENT AND EACH LENDER
WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT,
TORT OR OTHERWISE, AMONG BORROWER, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN
CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION
WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.



     IN WITNESS WHEREOF, the parties have executed and delivered this Credit Agreement as of the
date first set forth above.



	 	 	 	 	 	 	 
	Address:	 	c/o Sykes Enterprises, Incorporated	 	SYKES (BERMUDA) HOLDINGS LIMITED
	 

	 	400 N. Ashley Dr., Suite 2800	 	 	 	 
	 

	 	Tampa, Florida 33602
	 	By:
	 	/s/ W. Michael Kipphut
	 

	 	 	 	 	 	 
	 	 	Attn: Chief Financial Officer	 	 	 	W. Michael Kipphut
	 	 	 	 	 	 	President
	 
	 	 	 	 	 	 
	Address:	 	127 Public Square	 	KEYBANK NATIONAL ASSOCIATION,
	 	 	Cleveland, Ohio 44114-1306
Attn: Institutional Bank	 	     as Agent and as a Lender








	 	 	 	 	 	 	 
	 

	 	 
	 	By:
	 	/s/ Jennifer O’Brien
	 

	 	 	 	 	 	 
	 	 	 	 	 	 	Jennifer O’Brien
	 	 	 	 	 	 	Vice President





Signature
Page to 

Credit Agreement


 









 





SCHEDULE 1




COMMITMENTS OF LENDERS








	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	TERM LOAN	 	 
	 	 	COMMITMENT	 	COMMITMENT	 	 
	LENDERS	 	PERCENTAGE	 	AMOUNT	 	MAXIMUM AMOUNT
	KeyBank National
Association
	 	 	100	%	 	$	75,000,000	 	 	$	75,000,000	 
	 
	Total Commitment Amount
	 	 	100	%	 	$	75,000,000	 	 	$	75,000,000	 






 









 





SCHEDULE 2




GUARANTORS OF PAYMENT




Sykes Enterprises, Incorporated, a Florida corporation




 









 








SCHEDULE 3




PLEDGED SECURITIES




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Certificate	 	Ownership
	Name of Subsidiary	 	Jurisdiction	 	Shares	 	Number	 	Percentage
	Sykes Offshore Holdings Limited
	 	Bermuda	 	 	780,000	 	 	 	2	 	 	 	65	%*








 




			
	*	 	100% of non-voting shares and equity interests and 65% of voting shares or equity interest
constitute Pledged Securities





 









 





EXHIBIT A

FORM OF

TERM NOTE




$                     



December 11, 2009




     FOR VALUE RECEIVED, the undersigned, SYKES (BERMUDA) HOLDINGS LIMITED, a Bermuda exempted
company (“Borrower”), promises to pay to the order of [                    ] (“Lender”) at the main office of
KEYBANK NATIONAL ASSOCIATION, as Agent, as hereinafter defined, 127 Public Square, Cleveland, Ohio
44114-1306 the principal sum of



                      
                   
                     
                   
                                         
                   
                     
                   
         
           
 DOLLARS



in lawful money of the United States of America in consecutive principal payments as set forth in
the Credit Agreement (as hereinafter defined).




     As used herein, “Credit Agreement” means the Credit Agreement dated as of December 11, 2009,
among Borrower, the Lenders, as defined therein, and KeyBank National Association, as the lead
arranger, sole book runner and administrative agent for the Lenders (“Agent”), as the same may from
time to time be amended, restated or otherwise modified. Each capitalized term used herein that is
defined in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to
it in the Credit Agreement.



     Borrower also promises to pay interest on the unpaid principal amount of the Term Loan from
time to time outstanding, from the date of the Term Loan until the payment in full thereof, at the
rates per annum that shall be determined in accordance with the provisions of Section 2.2(a) of the
Credit Agreement. Such interest shall be payable on each date provided for in such Section 2.2(a);
provided that interest on any principal portion that is not paid when due shall be payable on
demand.



     The portions of the principal sum hereof from time to time representing Base Rate Interest
Segments and Eurodollar Interest Segments, interest owing thereon, and payments of principal and
interest of any thereof, shall be shown on the records of Lender by such method as Lender may
generally employ; provided that failure to make any such entry shall in no way detract from the
obligations of Borrower under this Note.



     If this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of
time or by operation of any provision for acceleration of maturity contained in the Credit
Agreement, the principal hereof and the unpaid interest thereon shall bear interest, pursuant to
the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All
payments of principal of and interest on this Note shall be made in immediately available funds.



     This Note is one of the Term Notes referred to in the Credit Agreement and is entitled to the
benefits thereof. Reference is made to the Credit Agreement for a description of the right of the
undersigned to anticipate payments hereof, the right of the holder hereof to declare this Note due
prior to its stated maturity, and other terms and conditions upon which this Note is issued.



E-1









 





     Except as expressly provided in the Credit Agreement, Borrower expressly waives presentment,
demand, protest and notice of any kind. This Note shall be governed by and construed in accordance
with the laws of the State of Ohio, without regard to conflicts of laws provisions.



     JURY TRIAL WAIVER. BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT
TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, AMONG BORROWER, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS
NOTE OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH OR THE TRANSACTIONS RELATED THERETO.



	 	 	 	 	 
	 	 	SYKES (BERMUDA) HOLDINGS LIMITED
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 





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EXHIBIT B

FORM OF

NOTICE OF INTEREST SEGMENT SELECTION




[Date]                     , 20                     




KeyBank National Association, as Agent

127 Public Square

Cleveland, Ohio 44114-0616

Attention: Institutional Bank




Ladies and Gentlemen:




     The undersigned, Sykes (Bermuda) Holdings Limited, a Bermuda exempted company (“Borrower”),
refers to the Credit Agreement, dated as of December 11, 2009 (“Credit Agreement”, the terms
defined therein being used herein as therein defined), among the undersigned, the Lenders, as
defined in the Credit Agreement, and KEYBANK NATIONAL ASSOCIATION, as the lead arranger, sole book
runner and administrative agent for the Lenders (“Agent”) and hereby gives you notice, pursuant to
Section 2.4 of the Credit Agreement that Borrower hereby requests an Interest Segment under the
Credit Agreement, and in connection therewith sets forth below the information relating to each
selection (the “Proposed Interest Segment”) as required by Section 2.4 of the Credit Agreement:




	 	(a)	 	The Business Day of the Proposed Interest Segment is
                    ,
20___.
	 
	 	(b)	 	The amount of the Proposed Interest Segment is $                     .
	 
	 	(c)	 	The Proposed Interest Segment is to be a Base Rate Interest Segment                     / Eurodollar
Interest Segment                     /. (Check one.)
	 
	 	(d)	 	If the Proposed Interest Segment is a Eurodollar Interest Segment, the Interest
Period requested is: one month ___, two months ___,
three months ___. (Check one.)




The undersigned hereby certifies on behalf of Borrower that the following statements are true on
the date hereof, and will be true on the date of the Proposed Interest Segment:





     (i) the representations and warranties contained in each Loan Document are true and
correct in all material respects, before and after giving effect to the Proposed Interest
Segment and the application of the proceeds therefrom, as though made on and as of such
date;



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     (ii) no event has occurred and is continuing, or would result from such Proposed
Interest Segment, or the application of proceeds therefrom, that constitutes a Default or
Event of Default; and




     (iii) the conditions set forth in Section 2.4 and Article IV of the Credit Agreement
have been satisfied.



	 	 	 	 	 
	 	 	SYKES (BERMUDA) HOLDINGS LIMITED
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 






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EXHIBIT C

FORM OF

COMPLIANCE CERTIFICATE




For [Fiscal Quarter] [month] ended                     




THE UNDERSIGNED HEREBY CERTIFIES THAT:



     (1) I am the duly elected President or Chief Financial Officer of Sykes (Bermuda) Holdings
Limited, a Bermuda exempted company (“Borrower”);



     (2) I am familiar with the terms of that certain Credit Agreement, dated as of December 11,
2009, among Borrower, the lenders from time to time named on Schedule 1 thereto (together
with their respective successors and assigns, collectively, the “Lenders”), as defined in the
Credit Agreement, and KEYBANK NATIONAL ASSOCIATION as Agent (as the same may from time to time be
amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being
used herein as therein defined), and the terms of the other Loan Documents, and I have made, or
have caused to be made under my supervision, a review in reasonable detail of the transactions and
condition of Borrower and its Subsidiaries during the accounting period covered by the attached
financial statements;



     (3) The review described in paragraph (2) above did not disclose, and I have no knowledge of,
the existence of any condition or event that constitutes or constituted a Default or Event of
Default, at the end of the accounting period covered by the attached financial statements or as of
the date of this Certificate;



     (4) The representations and warranties made by Borrower contained in each Loan Document are
true and correct in all material respects as though made on and as of the date hereof; and



     (5) Set forth on Attachment I hereto are calculations of the financial covenants set forth in
Section 5.7 of the Credit Agreement, which calculations show compliance with the terms thereof.



     IN WITNESS WHEREOF, I have signed this certificate the ___day of                     , 20___.



	 	 	 	 	 
	 	 	SYKES (BERMUDA) HOLDINGS LIMITED
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 





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EXHIBIT D

FORM OF

ASSIGNMENT AND ACCEPTANCE AGREEMENT




     This Assignment and Acceptance Agreement (this “Assignment Agreement”) between
                     (the “Assignor”) and                      (the “Assignee”) is dated as of
                    ,
20__. The parties hereto agree as follows:



     1. Preliminary Statement. Assignor is a party to a Credit Agreement, dated as of
December 11, 2009 (as the same may from time to time be amended, restated or otherwise modified,
the “Credit Agreement”), among SYKES (BERMUDA) HOLDINGS LIMITED, a Bermuda exempted company
(“Borrower”), the lenders named on Schedule 1 thereto (together with their respective
successors and assigns, collectively, the “Lenders” and, individually, each a “Lender”), and
KEYBANK NATIONAL ASSOCIATION, as the lead arranger, sole book runner and administrative agent for
the Lenders (“Agent”). Capitalized terms used herein and not otherwise defined herein shall have
the meanings attributed to them in the Credit Agreement.



     2. Assignment and Assumption. Assignor hereby sells and assigns to Assignee, and
Assignee hereby purchases and assumes from Assignor, an interest in and to Assignor’s rights and
obligations under the Credit Agreement, effective as of the Assignment Effective Date (as
hereinafter defined), equal to the percentage interest specified on Annex 1 hereto
(hereinafter, the “Assigned Percentage”) of Assignor’s right, title and interest in and to (a) any
portion of the Term Loan made by Assignor that is outstanding on the Assignment Effective Date, (b)
any Term Note delivered to Assignor pursuant to the Credit Agreement, and (c) the Credit Agreement
and the other Related Writings. After giving effect to such sale and assignment and on and after
the Assignment Effective Date, Assignee shall be deemed to have a Commitment Percentage under the
Credit Agreement equal to the Commitment Percentage set forth in subpart II.A on Annex 1
hereto and an Assigned Amount as set forth on subpart I.B of Annex 1 hereto (hereinafter,
the “Assigned Amount”).



     3. Assignment Effective Date. The Assignment Effective Date (the “Assignment
Effective Date”) shall be [                     ___,                     ] (or such other date agreed to by Agent). On or
prior to the Assignment Effective Date, Assignor shall satisfy the following conditions:



     (a) receipt by Agent of this Assignment Agreement, including Annex 1 hereto, properly
executed by Assignor and Assignee and accepted and consented to by Agent and, if necessary pursuant
to the provisions of Section 10.10(b) of the Credit Agreement, by Borrower;



     (b) receipt by Agent from Assignor of a fee of Three Thousand Five Hundred Dollars ($3,500),
if required by Section 10.10(d) of the Credit Agreement;



     (c) receipt by Agent from Assignee of an administrative questionnaire, or other similar
document, which shall include (i) the address for notices under the Credit Agreement, (ii) the
address of its Lending Office, (iii) wire transfer instructions for delivery of funds by Agent,
(iv) and such other information as Agent shall request; and



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     (d) receipt by Agent from Assignor or Assignee of any other information required pursuant to
Section 10.10 of the Credit Agreement or otherwise necessary to complete the transaction
contemplated hereby.



     4. Payment Obligations. In consideration for the sale and assignment of the Term Loan
hereunder, Assignee shall pay to Assignor, on the Assignment Effective Date, the amount agreed to
by Assignee and Assignor. Any interest, fees and other payments accrued prior to the Assignment
Effective Date with respect to the Assigned Amount shall be for the account of Assignor. Any
interest, fees and other payments accrued on and after the Assignment Effective Date with respect
to the Assigned Amount shall be for the account of Assignee. Each of Assignor and Assignee agrees
that it will hold in trust for the other party any interest, fees or other amounts which it may
receive to which the other party is entitled pursuant to the preceding sentence and to pay the
other party any such amounts which it may receive promptly upon receipt thereof.



     5. Credit Determination; Limitations on Assignor’s Liability. Assignee represents and
warrants to Assignor, Borrower, Agent and the Lenders (a) that it is capable of making and has made
and shall continue to make its own credit determinations and analysis based upon such information
as Assignee deemed sufficient to enter into the transaction contemplated hereby and not based on
any statements or representations by Assignor; (b) Assignee confirms that it meets the requirements
to be an assignee as set forth in Section 10.10 of the Credit Agreement; (c) Assignee confirms that
it is able to fund its portion of the Term Loan as required by the Credit Agreement; (d) Assignee
agrees that it will perform in accordance with their terms all of the obligations which by the
terms of the Credit Agreement and the Related Writings are required to be performed by it as a
Lender thereunder; and (e) Assignee represents that it has reviewed each of the Loan Documents. It
is understood and agreed that the assignment and assumption hereunder are made without recourse to
Assignor and that Assignor makes no representation or warranty of any kind to Assignee and shall
not be responsible for (i) the due execution, legality, validity, enforceability, genuineness,
sufficiency or collectability of the Credit Agreement or any Related Writings, (ii) any
representation, warranty or statement made in or in connection with the Credit Agreement or any of
the Related Writings, (iii) the financial condition or creditworthiness of Borrower or any
Guarantor of Payment, (iv) the performance of or compliance with any of the terms or provisions of
the Credit Agreement or any of the Related Writings, (v) the inspection of any of the property,
books or records of Borrower, or (vi) the validity, enforceability, perfection, priority,
condition, value or sufficiency of any collateral securing or purporting to secure the Term Loan.
Neither Assignor nor any of its officers, directors, employees, agents or attorneys shall be liable
for any mistake, error of judgment, or action taken or omitted to be taken in connection with the
Term Loan, the Credit Agreement or the Related Writings, except for its or their own gross
negligence or willful misconduct. Assignee appoints Agent to take such action as agent on its
behalf and to exercise such powers under the Credit Agreement as are delegated to Agent by the
terms thereof.



     6. Indemnity. Assignee agrees to indemnify and hold Assignor harmless against any and
all losses, cost and expenses (including, without limitation, attorneys’ fees) and liabilities
incurred by Assignor in connection with or arising in any manner from Assignee’s performance or
non-performance of obligations assumed under this Assignment Agreement.



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     7. Subsequent Assignments. After the Assignment Effective Date, Assignee shall have
the right pursuant to Section 10.10 of the Credit Agreement to assign the rights which are assigned
to Assignee hereunder, provided that (a) any such subsequent assignment does not violate any of the
terms and conditions of the Credit Agreement, any of the Related Writings, or any law, rule,
regulation, order, writ, judgment, injunction or decree and that any consent required under the
terms of the Credit Agreement or any of the Related Writings has been obtained, (b) the assignee
under such assignment from Assignee shall agree to assume all of Assignee’s obligations hereunder
in a manner satisfactory to Assignor, and (c) Assignee is not thereby released from any of its
obligations to Assignor hereunder.



     8. Acceptance of Agent; Notice by Assignor. This Assignment Agreement is conditioned
upon the acceptance and consent of Agent and, if necessary pursuant to Section 10.10 of the Credit
Agreement, upon the acceptance and consent of Borrower; provided, that the execution of this
Assignment Agreement by Agent and, if necessary, by Borrower is evidence of such acceptance and
consent.



     9. Entire Agreement. This Assignment Agreement embodies the entire agreement and
understanding between the parties hereto and supersedes all prior agreements and understandings
between the parties hereto relating to the subject matter hereof.



     10. Governing Law. This Assignment Agreement shall be governed by the laws of the
State of Ohio, without regard to conflicts of laws.



     11. Notices. Notices shall be given under this Assignment Agreement in the manner set
forth in the Credit Agreement. For the purpose hereof, the addresses of the parties hereto (until
notice of a change is delivered) shall be the address set forth under each party’s name on the
signature pages hereof.



     12. Counterparts. This Assignment Agreement may be executed in any number of counterparts, by
different parties hereto in separate counterparts and by facsimile signature, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same agreement.



[Remainder of page intentionally left blank.]




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     13. JURY TRIAL WAIVER. EACH OF THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE, AMONG AGENT, ANY OF THE LENDERS, AND BORROWER, OR ANY THEREOF, ARISING OUT OF, IN
CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION
WITH THIS INSTRUMENT OR ANY NOTE OR OTHER AGREEMENT, INSTRUMENT OR DOCUMENT EXECUTED OR DELIVERED
IN CONNECTION THEREWITH OR THE TRANSACTIONS RELATED HERETO.



     IN WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement by their duly
authorized officers as of the date first above written.



	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	ASSIGNOR:
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Attn:
	 	 	 	By:	 	 
	 

	 	 	 	 
	 	 	 	 
	 

	 	Phone:
	 	 	 	Name:	 	 
	 

	 	 	 	 
	 	 	 	 
	 

	 	Fax:
	 	 	 	Title:	 	 
	 

	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	ASSIGNEE:
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Attn:
	 	 	 	By:	 	 
	 

	 	 	 	 
	 	 	 	 
	 

	 	Phone:
	 	 	 	Name:	 	 
	 

	 	 	 	 
	 	 	 	 
	 

	 	Fax:
	 	 	 	Title:	 	 
	 

	 	 	 	 
	 	 	 	 





	 	 	 	 	 	 	 
	Accepted and Consented to this ___ day of ___, 20__:	 	Accepted and Consented to this ___ day of _______, 20__:
	 
	 	 	 	 	 	 
	KEYBANK NATIONAL ASSOCIATION,	 	[INSERT SIGNATURE OF BORROWER IF REQUIRED]
	     as Agent	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	SYKES (BERMUDA) HOLDINGS LIMITED
	 
	 	 	 	 	 	 
	By:

	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	Name:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Title:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 





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ANNEX 1

TO

ASSIGNMENT AND ACCEPTANCE AGREEMENT




     On and after the Assignment Effective Date, after giving effect to all other assignments being
made by Assignor on the Assignment Effective Date, the Term Loan Commitment of Assignee, and, if
this is less than an assignment of all of Assignor’s interest, Assignor, shall be as follows:



	 	 	 	 	 
	I. INTEREST BEING ASSIGNED TO ASSIGNEE
	 	 	 	 
	A. Term Loan Commitment
	 	 	 	 
	 
	 	 	 	 
	Commitment Percentage
	 	 	                       	%
	Assigned Amount
	 	 	$                    	 
	 
	 	 	 	 
	II. ASSIGNEE’S COMMITMENT (as of the Assignment Effective Date)
	 	 	 	 
	A. Term Loan Commitment
	 	 	 	 
	 
	Commitment Percentage
	 	 	                            	%
	Assignee’s Term Loan Commitment amount
	 	 	$                    	 
	 
	III. ASSIGNOR’S COMMITMENT (as of the Assignment Effective Date)
	 	 	 	 
	A. Term Loan Commitment
	 	 	 	 
	 
	 	 	 	 
	Commitment Percentage
	 	 	                       	%
	Assignor’s remaining Term Loan Commitment amount
	 	 	$                    	 







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