Document:

EX-10.4

Exhibit 10.4

AMENDED AND RESTATED

EXECUTIVE SEVERANCE AGREEMENT

AGREEMENT between Saia, Inc., a Delaware corporation (“Saia”), and Anthony D. Albanese (the
“Executive”),

WITNESSETH:

WHEREAS, the Compensation Committee of the Board of Directors (the “Board”) of Saia has
recommended, and the Board has approved, Saia entering into severance agreements with key
executives of Saia and its Subsidiaries (hereinafter sometimes collectively referred to as the
“Corporation”); and

WHEREAS, the Executive is a key executive of Saia or one of its Subsidiaries and has been
selected by the Board as a key executive; and

WHEREAS, should Saia receive any proposal from a third person concerning a possible Business
Combination with, or acquisition of equity securities of, Saia, the Board believes it important
that the Corporation and the Board be able to rely upon the Executive to continue in his position,
and that Saia have the benefit of the Executive performing his duties without his being distracted
by the personal uncertainties and risks created by such a proposal;

WHEREAS, the parties wish to amend and restate the terms of their existing Executive Severance
Agreement;

NOW, THEREFORE, the parties agree as follows:

1. Definitions.

(a) “Affiliate” and “Associates” shall have the respective meanings given
those terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of
1934, as in effect on the date hereof.

(b) “Beneficial Owner” of shares shall include any Voting Shares:

(i) which such person or any of its Affiliates or Associates beneficially own, directly
or indirectly, or

(ii) which such person or any of its Affiliates or Associates has (1) the right to
acquire (whether such right is exercisable immediately or only after the passage of time),
pursuant to any agreement, arrangement or understanding or upon the exercise of conversion
rights, exchange rights, warrants, or options, or otherwise, or (2) the right to vote
pursuant to any agreement, arrangement or understanding, or

(iii) which are beneficially owned, directly or indirectly, by any other person with
which such first mentioned person or any of its Affiliates or Associates has any agreement,
arrangement or understanding for the purpose of acquiring, holding, voting or disposing of
any shares of capital stock of Saia.

(c) “Business Combination” means:

(i) any merger or consolidation of Saia with or into (1) any Substantial Stockholder
(as hereinafter defined) or (2) any other corporation (whether or not itself a Substantial
Stockholder) which, after such merger or consolidation, would be an Affiliate of a
Substantial Stockholder, or

(ii) any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one
transaction or a series of related transactions) to or with (1) any Substantial Stockholder
or (2) an Affiliate of a Substantial Stockholder of any assets of the Saia or any Subsidiary
having an aggregate fair market value of $5,000,000 or more, or

(iii) the issuance or transfer by Saia (in one transaction or a series of related
transactions) of any securities of the Corporation or any Subsidiary to (1) any Substantial
Stockholder or (2) any other corporation (whether or not itself a Substantial Stockholder)
which, after such issuance or transfer, would be an Affiliate of a Substantial Stockholder
in exchange for cash, securities or other property (or a combination thereof) having an
aggregate fair market value of $5,000,000 or more, or

(iv) the adoption of any plan or proposal for the liquidation or dissolution of the
Corporation proposed by or on behalf of a Substantial Stockholder or an Affiliate of a
Substantial Stockholder, or

(v) any reclassification of securities (including any reverse stock split),
recapitalization, reorganization, merger or consolidation of the Corporation with any of its
Subsidiaries or any similar transaction (whether or not with or into or otherwise involving
a Substantial Stockholder or an Affiliate of a Substantial Stockholder) which has the
effect, directly or indirectly, of increasing the proportionate share of the outstanding
 shares of any class of equity or convertible securities of the Corporation or any Subsidiary
which is directly or indirectly owned by any Substantial Stockholder or by an Affiliate of a
Substantial Stockholder.

(d) “Cause” means conviction of a felony involving moral turpitude by a court of
competent jurisdiction, which is no longer subject to direct appeal, or an adjudication by a court
of competent jurisdiction, which is no longer subject to direct appeal, that the Executive is
mentally incompetent or that he is liable for willful misconduct in the performance of his duty to
the Corporation which is demonstrably and materially injurious to the Corporation.

(e) “Change of Control,” for the purposes of this Agreement, shall be deemed to have
taken place if: (i) a third person, including a “group” as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, purchases or otherwise acquires shares of the Corporation after
the date hereof and as a result thereof becomes the beneficial owner of shares of the Corporation
having 20% or more of the total number of votes that may be cast for election of directors of Saia;
or (ii) as the result of, or in connection with any cash tender or exchange offer, merger or other
Business Combination, or contested election, or any combination of the foregoing transactions, the
directors then serving on the Board of Directors of Saia shall cease to constitute a majority of
the Board of Directors of Saia or any successor to Saia.

(f) “Code” means the Internal Revenue Code of 1986, as amended.

(g) “Corporation” means Saia and its Subsidiaries.

(h) “Normal Retirement Age” means the last day of the calendar month in which the
Executive’s 65th birthday occurs.

(i) “Permanent Disability” means a physical or mental condition which permanently
renders the Executive incapable of exercising the duties and responsibilities of the position he
held immediately prior to any Change of Control.

(j) “Potential Change of Control” shall be deemed to have occurred if the event set
forth in any one of the following paragraphs shall have occurred: (i)  Saia enters into an
agreement, the consummation of which would result in the occurrence of a Change of Control; (ii) 
Saia or any person or “group” as defined in Section 3(d)(3) of the Securities Exchange Act of 1934,
as amended, publicly announces an intention to take or consider taking actions which, if
consummated would constitute a Change in Control; (iii) the Board of Directors adopts a resolution
to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred.

(k) “Subsidiary” means any domestic or foreign corporation, a majority of whose shares
normally entitled to vote in electing directors is owned directly or indirectly by Saia or by other
Subsidiaries.

(l) “Substantial Stockholder” means, in respect of any Business Combination, any
person (other than Saia) who or which is on the record date for the determination of stockholders
entitled to notice of and to vote on such Business Combination, or as of the time of the vote on
such Business Combination, or immediately prior to the consummation of any such transaction,

(i) is the Beneficial Owner, directly or indirectly, of not less than 10% of the Voting
Shares, or

(ii) is an Affiliate of Saia and at any time within five years prior thereto was the
Beneficial Owner, directly or indirectly, of not less than 10% of the then outstanding
Voting Shares, or

(iii) is an assignee of or has otherwise succeeded to any shares of capital stock of
Saia which were at any time within five years prior thereto beneficially owned by any
Substantial Stockholder, and such assignment or succession shall have occurred in the course
of a transaction or a series of transactions not involving a public offering within the
meaning of the Securities Act of 1933, as amended.

(m) “Voting Shares” means the outstanding shares of capital stock of Saia entitled to
vote generally in the election of the directors.

2. Services During Certain Events. In the event a third person begins a tender or
exchange offer or takes other steps seeking to effect a Change of Control, the Executive agrees
that he will not voluntarily leave the employ of the Corporation without the consent of the
Corporation, and will render the services contemplated in the recitals of this Agreement, until the
third person has abandoned or terminated his or its efforts to effect a Change of Control or until
90 days after a Change of Control has occurred. In the event the Executive fails to comply with
the provisions of this paragraph, the Corporation will suffer damages which are difficult, if not
impossible, to ascertain. Accordingly, should the Executive fail to comply with the provisions of
this paragraph, the Corporation shall retain the amounts which would otherwise be payable to the
Executive hereunder as fixed, agreed and liquidated damages but shall have no other recourse
against the Executive.

3. Termination After Change of Control. “Termination” shall include (a) termination
by the Corporation of the employment of Executive with the Corporation within two years after a
Change of Control for any reason other than death, Permanent Disability, retirement at or after his
Normal Retirement Age, or Cause or (b) resignation of the Executive after the occurrence of any of
the following events within two years after a Change of Control of Saia:

(a) An adverse change of the Executive’s title or a reduction or adverse change in the nature
or scope of the Executive’s authority or duties from those being exercised and performed by the
Executive immediately prior to the Change of Control.

(b) A transfer of the Executive to a location which is more than 50 miles away from the
location where the Executive was employed immediately prior to the Change of Control.

(c) Any reduction in the rate of Executive’s annual salary below his rate of annual salary
immediately prior to the Change of Control.

(d) Any reduction in the level of Executive’s fringe benefits or bonus below a level
consistent with the Corporation’s practice prior to the Change of Control.

4. Termination Payment. In the event of a Termination, as defined in Paragraph 3,
Saia shall provide the Executive the following benefits:

(a) Saia shall pay to the Executive on or before the Executive’s last day of employment with
the Corporation, as additional compensation for services rendered to the Corporation, a lump sum
cash amount (subject to the minimum applicable federal, state or local lump sum withholding
requirements, if any, unless the Executive requests that a greater amount be withheld) equal to two
times the highest base salary and annual cash incentive bonuses paid or payable to the Executive by
the Corporation with respect to any 12 consecutive month period during the three years ending with
the date of the Executive’s Termination.

(b) During the two years following the Executive’s Termination, the Executive shall be deemed
to remain an employee of the Corporation for purposes of the applicable medical, life insurance and
long-term disability plans and programs covering key executives of the Corporation and shall be
entitled to receive the benefits available to key executives thereunder, provided; however, that in
the event the Executive’s participation in any such employee benefit plan or program is barred, the
Corporation shall arrange to provide the Executive with substantially similar benefits.

(c) The Executive shall be entitled to the Gross-Up Payment, if any, described in Paragraph 6.

(d) The Corporation shall pay the Executive the Termination Payment set forth in this
paragraph upon termination of the Executive’s employment following a Potential Change in Control
but before a Change in Control and during the term of this Agreement if: (i) the termination is
initiated, caused or directed by any person or group which has initiated a transaction, the
consummation of which would result in a Change of Control; and (ii) the termination would have been
by the Executive for any of the reasons enumerated in paragraph 3(a)-3(d) or by the Corporation
without Cause if a Change of Control had occurred on the date of the Potential Change in Control.

5. Stock-Out of Options. In the event of a Change of Control, the Executive’s
non-qualified stock options and incentive stock options granted by the Corporation which are
outstanding on the date of the Change of Control, shall immediately vest and Executive shall have
12 months from the date of the Change of Control to exercise said options.

6. Additional Payments by Saia.

(a) Gross-Up Payment. In the event it shall be determined that any payment or benefit
of any type by the Corporation to or for the benefit of the Executive, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or otherwise (determined
without regard to any additional payments required under this Paragraph 6) (the “Total Payments”)
would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the “Code”) (or any similar tax that may hereafter be imposed) or any interest or
penalties with respect to such excise tax (such excise tax, together with any such interest and
penalties, are collectively referred to as the “Excise Tax”), then the Executive shall be entitled
to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect to such taxes),
including any Excise Tax, imposed upon the Gross-Up Payment, the Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments. Payment of the Gross-Up
Payment shall be made promptly following the determination by the Accounting Firm as described in
subparagraph (b) of this Paragraph 6, but no later than 60 calendar days after the Executive’s date
of Termination, or in accordance with subparagraph (c) of this Paragraph 6.

(b) Determination by Accountant. All determinations required to be made under this
Paragraph 6, including whether a Gross-Up Payment is required and the amount of such Gross-Up
Payment, shall be made by an independent accounting firm retained by Saia (the “Accounting Firm”),
which shall provide detailed supporting calculations both to Saia and the Executive within 15
business days of the date of Termination, if applicable, or such earlier time as is requested by
Saia. If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall
furnish the Executive with an opinion that he has substantial authority not to report any Excise
Tax on his federal income tax return. Any determination by the Accounting Firm shall be binding
upon Saia and the Executive. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments which will not have been made by Saia should have been made (“Underpayment”)
consistent with the calculations required to be made hereunder. In the event that Saia exhausts
its remedies pursuant to subparagraph (c) of this Paragraph 6 and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by Saia to or for
the benefit of the Executive. Saia shall promptly pay all expenses of the Accounting Firm pursuant
to this Paragraph 6.

(c) Notification Required. The Executive shall notify Saia in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by Saia of the Gross-Up
Payment. Such notification shall be given as soon as practicable but no later than ten business
days after the Executive knows of such claim and shall apprise Saia of the nature of such claim and
the date on which such claim is requested to be paid. The Executive shall not pay such claim prior
to the expiration of the thirty-day period following the date on which it gives such notice to Saia
(or such shorter period ending on the date that any payment of taxes with respect to such claim is
due). If Saia notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

(i) give Saia any information reasonably requested by Saia relating to such claim;

(ii) take such action in connection with contesting such claim as Saia shall reasonably
request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by Saia;

(iii) cooperate with Saia in good faith in order to effectively contest such claim; and

(iv) permit Saia to participate in any proceeding relating to such claim; provided,
however, that Saia shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred in connection with such contest and shall indemnify and
hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax,
including interest and penalties with respect thereto, imposed as a result of such
representation and payment of costs and expenses. Without limitation on the foregoing
provisions of this subparagraph (c), Saia shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in respect of such
claim and may, at it sole option, either direct the Executive to pay the tax claimed and sue
for a refund, or contest the claim in any permissible manner, and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as Saia shall determine; provided,
however, that if Saia directs the Executive to pay such claim and sue for a refund, Saia
shall advance the amount of such payment to the Executive, on an interest-free basis and
shall indemnify and hold the Executive harmless, on an after-tax basis, from any excise tax
or income tax, including interest or penalties with respect thereto, imposed with respect to
such advance or with respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations relating to payment of taxes for
the taxable year of the Executive with respect to which such contested amount is claimed to
be due is limited solely to such contested amount. Furthermore, Saia’s control of the
contest shall be limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and the Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing authority.

(d) Repayment. If, after the receipt by Executive of an amount paid or advanced by
Saia pursuant to this Paragraph 6, the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall (subject to Saia’s complying with the requirements of
this Paragraph 6), promptly pay to Saia the amount of such refund (together with any interest paid
or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an
amount paid or advanced by Saia pursuant to this Paragraph 6, a determination is made that the
Executive shall not be entitled to any refund with respect to such claim and Saia does not notify
the Executive in writing of its intent to contest such denial of refund prior to the expiration of
thirty days after such determination, then such payment or advance shall be forgiven and shall not
be required to be repaid and the amount of such payment or advance shall offset, to the extent
thereof, the amount of the Gross-Up Payment required to be paid.

(e) Code Section 409A Compliance. In the event the Underpayment benefit described in
subparagraph (b) Paragraph 6 constitutes nonqualified deferred compensation that is not otherwise
exempt from Code Section 409A, as determined under Code Section 409A and the regulations
promulgated thereunder, the Underpayment amount shall be paid to the Executive only in the third
calendar year immediately following the calendar year in which the Executive’s date of Termination
occurs. In no event shall Saia advance to or pay for the benefit of the Executive any amount
necessary to satisfy the Executive’s liability for an Excise Tax that was not accounted for in the
Gross-Up Payment described in subparagraph (a) of Paragraph 6.

7. General.

(a) Arbitration. Any dispute between the parties hereto arising out of, in connection
with, or relating to this Agreement or the breach thereof shall be settled by arbitration in Kansas
City, Missouri, in accordance with the rules then in effect of the American Arbitration Association
(“AAA”). Arbitration shall be the exclusive remedy for any such dispute except only as to failure
to abide by an arbitration award rendered hereunder. Regardless of whether or not both parties
hereto participate in the arbitration proceeding, any arbitration award rendered hereunder shall be
final and binding on each party hereto and judgment upon the award rendered may be entered in any
court having jurisdiction thereof.

The party seeking arbitration shall notify the other party in writing and request the AAA to
submit a list of 5 or 7 potential arbitrators. In the event the parties do not agree upon an
arbitrator, each party shall, in turn, strike one arbitrator from the list, the Corporation having
the first strike, until only one arbitrator remains, who shall arbitrate the dispute. The
arbitration hearing shall be conducted within 30 days of the selection of an arbitrator or at the
earliest date thereafter that the arbitrator is available.

(b) Indemnification. If arbitration occurs as provided for herein, the Corporation
shall reimburse the Executive for his reasonable attorneys’ fees, costs and disbursements incurred
in such arbitration and hereby agrees to pay interest on any money award obtained by the Executive
from the date payment should have been made until the date payment is made, calculated at the prime
interest rate of Bank of America, N.A., in effect from time to time, plus 2%, from the date that
payment(s) to him should have been made under this Agreement. If the Executive enforces the
arbitration award in court, the Corporation shall reimburse the Executive for his reasonable
attorneys’ fees, costs and disbursements incurred in such enforcement.

(c) Payment Obligations Absolute. Saia’s obligation to pay the Executive the
compensation and to make the arrangements provided herein shall be absolute and unconditional and
shall not be affected by any circumstance, including, without limitation, any setoff, counterclaim,
recoupment, defense or other right which the Corporation may have against him or anyone else,
except as provided in paragraph 2 hereof. All amounts payable by Saia hereunder shall be paid
without notice or demand. Each and every payment made hereunder by Saia shall be final and Saia
will not seek to recover all or any part of such payment from the Executive or from whosoever may
be entitled thereto, for any reason whatsoever. The Executive shall not be obligated to seek other
employment in mitigation of the amounts payable or arrangements made under any provision of this
Agreement, and the obtaining of any such other employment shall in no event affect any reduction of
Saia’s obligation to make the payments required to be made under this Agreement.

(d) Continuing Obligations. The Executive shall retain in confidence any confidential
information known to him concerning the Corporation and its respective businesses until such
information is publicly disclosed.

(e) Successors. This Agreement shall be binding upon and inure to the benefit of the
Executive and his estate and the Corporation and any successor of the Corporation, but neither this
Agreement nor any rights arising hereunder may be assigned or pledged by the Executive.

(f) Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent
of such prohibition or unenforceability without invalidating or affecting the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

(g) Controlling Law. This Agreement shall in all respects be governed by and
construed in accordance with the laws of the State of Delaware.

(h) Termination. This Agreement shall terminate if a majority of the Board of
Directors of Saia determines that the Executive is no longer a key executive and so notifies the
Executive; except that such determination shall not be made, and if made shall have no
effect, (i) within two years after the Change of Control in question or (ii) during any period of
time when Saia has knowledge that any third person has taken steps reasonably calculated to effect
a Change of Control until, in the opinion of a majority of the Board of Directors of Saia the third
person has abandoned or terminated his efforts to effect a Change of Control.

[Remainder of page intentionally left blank.]

1

IN WITNESS WHEREOF, the parties have executed this Agreement on the 24th day of October, 2006.

	 	 	 	 	 
	 
	 	SAIA, INC.

	EXECUTIVE:
	 	By: /s/ Herbert A. Trucksess, III

	/s/ Anthony D. Albaneses
	 	 	—	 
	—
	 	Herbert A. Trucksess, III

	Anthony D. Albanese
	 	Chairman, Chief Executive Officer

	 
	 	ATTEST:

	 
	 	By: /s/ James A. Darby

2EX-10.1

EXHIBIT 10.1

AMENDMENT NO.  4 TO

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

This Amendment No.  4 to Amended and Restated Loan and Security Agreement (this “Amendment”)
is effective as of October 1, 2006, is by and among LASALLE BANK NATIONAL ASSOCIATION, for itself
as a lender, and as Agent (“Agent”) for the lenders (“Lenders”) from time to time party to the
Amended and Restated Loan Agreement (as defined below) and APAC CUSTOMER SERVICES, INC.
(“Borrower”).

Preliminary Statements

Agent and Borrower are party to that certain Amended and Restated Loan and Security Agreement
dated as of October 31, 2005 (as amended, restated, supplemented or otherwise modified from time to
time, the (“Amended and Restated Loan Agreement”). Capitalized terms used but not defined in this
Amendment shall have the meanings ascribed to such terms in the Amended and Restated Loan
Agreement.

Borrower has requested, among other things, that Agent amend the Amended and Restated Loan
Agreement to (i) provide for changes to the definitions of Capital Expenditures, EBITDA and Special
Litigation Reserve pursuant to Section 1, (ii) amend the Tangible Net Worth covenant pursuant to
Section 14(a), the Maximum Cash Restructuring Charge covenant pursuant to Section 14(e), and the
Fixed Charge Coverage covenant pursuant to Section 14(f) and (iii) eliminate the Interest Coverage
covenant pursuant to Section 14(b), the Minimum Free Cash Flow covenant pursuant to Section 14(c)
and the Excess Availability covenant pursuant to Section 14(d), all as set forth herein and Agent
is willing to do so on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and
agreements set forth herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Amendment to Amended and Restated Loan Agreement. In reliance on the
representations and warranties set forth in Section 2 below and subject to the satisfaction of the
conditions set forth in Section 3 below, the Amended and Restated Loan Agreement is hereby amended
as follows:

(a) The definitions of “Capital Expenditures”, “EBITDA” and “Special Litigation Reserve” in
Section 1 of the Amended and Restated Loan Agreement are hereby amended and restated in their
entirety, as follows:

“Capital Expenditures” shall mean with respect to any period, the aggregate of all
expenditures (whether paid in cash or accrued as liabilities and including expenditures for
capitalized lease obligations) by Borrower and its Subsidiaries during such period that are
required by generally accepted accounting principles, consistently applied, to be included in or
reflected by the property, plant and equipment or similar fixed asset accounts (or intangible
accounts subject to amortization) on the balance sheet of Borrower and its Subsidiaries less the
amount of net cash proceeds received from the sale of such property, plant and equipment or similar
fixed asset that have been applied against the Revolving Loans of Borrower during such period.

"EBITDA” shall mean, with respect to any period, Borrower’s and its Subsidiaries’ net income
for such period, plus the sum (without duplication) of all amounts deducted in arriving at such net
income amount in respect of (i) interest expense for such period, (ii) federal, state and local
income taxes for such period, (iii) all amounts properly charged for depreciation of fixed assets
and amortization of intangible assets (including, without limitation, goodwill, deferred expenses
and organization costs) for such period, (iv)  non-cash restructuring charges and non-cash asset
impairment charges incurred during the period from July 1, 2005 through December 31, 2006 and not
to exceed $5,000,000 in connection with the Restructuring, (v) cash restructuring charges incurred
during such period in connection with the Restructuring Plan, not to exceed $9,000,000 from July 1,
2005 through June 30, 2006, (vi) the write down of goodwill in the quarter ending September 30,
2005 in an amount not to exceed $11,000,000; (vii) with respect to periods beginning after June 30,
2006, cash and non-cash restructuring charges and non-cash asset impairment charges incurred during
the period and not to exceed (A) $2,100,000 for the six (6) month period from July 1, 2006 through
the end of Borrower’s Fiscal Year ending on or about December 31, 2006 and (B) $2,500,000 in any
Fiscal Year thereafter, and (viii) non-cash charges related to the expensing of options for
Borrower’s common stock, all on a consolidated basis.

"Special Litigation Reserve” shall mean a reserve established by Agent on June 30, 2006 equal
to $1,000,000.00 which was subsequently increased to $1,600,000.00 as of October 1, 2006, which
reserve shall be increased to $2,800,000 on December 31, 2006 and, which reserve shall be
subsequently increased on the last Business Day of each calendar month thereafter by (i) $150,000
for each calendar month from January, 2007 through December, 2007, and (ii) $125,000 for each
calendar month from January 2008 through the earlier to occur of (A) December 2008 and (B) the
termination of this Agreement pursuant to Section 10, provided that such reserve may be adjusted by
Agent from time to time, in its sole discretion, determined in good faith, and may be eliminated if
Borrower and Agent agree.

(b) Section 2(a) of the Amended and Restated Loan Agreement is hereby amended and restated in
its entirety, as follows:

2. LOANS.

(a) Revolving Loans.

Immediately prior to the effectiveness of this Agreement, as of the date thereof, the
outstanding principal balance of the Original Revolving Loans was $9,407,249.59 (the “Outstanding
Original Revolving Loan Balance”). On the date thereof, the Outstanding Original Revolving Loan
Balance remained an outstanding Liability except to the extent that such Outstanding Original
Revolving Loan Balance was repaid on the date thereof. Subject to the terms and conditions of this
Agreement and the Other Agreements to which an Obligor is a party, during the Original Term and any
Renewal Term, so long as no Event of Default has occurred and is continuing, each Lender, severally
and not jointly, agrees to make its Pro Rata Share of revolving loans and advances (the “Revolving
Loans”) requested by Borrower up to such Lender’s Revolving Loan Commitment so long as after giving
effect to such Revolving Loans, the sum of the aggregate unpaid principal balance of the Revolving
Loans and the Letter of Credit Obligations does not exceed the sum of the following sublimits (the
"Revolving Loan Limit”):

(i) eighty-five percent (85%) of the face amount (less maximum discounts, credits and
allowances which may be taken by or granted to Account Debtors in connection therewith in
the ordinary course of Borrower’s business) of Borrower’s Billed Eligible Accounts; plus

(ii) (A) eighty-five percent (85%) of the face amount (less maximum discounts, credits
and allowances which may be taken by or granted to Account Debtors in connection therewith
in the ordinary course of Borrower’s business) of Borrower’s Unbilled Eligible Accounts or
(B) Seventeen Million and No/100 Dollars ($17,000,000), whichever is less; minus

(iii) such reserves as Agent elects, in its sole discretion, determined in good faith,
to establish from time to time (which amount shall include the Special Litigation Reserve
and an amount reflecting unpaid payroll including payroll taxes which amount shall initially
be $7,000,000);

provided, that the Revolving Loan Limit shall in no event exceed, as of any date, Twenty-Seven
Million Five Hundred Thousand and No/100 Dollars ($27,500,000) (such amount from time to time in
effect, the “Maximum Revolving Loan Limit”); provided, further, that the Revolving Loan Limit shall
be determined by reference to the most current borrowing base certificate delivered pursuant to
Section 9(a) and such determination shall remain in effect until delivery of the next
borrowing base certificate unless the Revolving Loan Limit is otherwise adjusted by Agent in its
sole credit judgment determined in good faith as a result of Billed Eligible Accounts or Unbilled
Eligible Accounts becoming ineligible prior to the delivery of the next borrowing base certificate
or the establishment by Agent in its sole discretion, determined in good faith, of any reserves.
Agent shall provide prompt notice to Borrower when (i) any adjustment of the Revolving Loan Limit
prior to the delivery of a borrowing base certificate pursuant to Section 9(a) is made and (ii)
establishing any reserves.

The aggregate unpaid principal balance of the Revolving Loans shall not at any time exceed the
lesser of the (i) Revolving Loan Limit minus the Letter of Credit Obligations and (ii) the Maximum
Revolving Loan Limit minus the Letter of Credit Obligations. If at any time the outstanding
Revolving Loans exceeds either the Revolving Loan Limit or the Maximum Revolving Loan Limit, in
each case minus the Letter of Credit Obligations, or any portion of the Revolving Loans and Letter
of Credit Obligations exceeds any applicable sublimit within the Revolving Loan Limit, Borrower
shall immediately, and without the necessity of demand by Agent, pay to Agent such amount as may be
necessary to eliminate such excess and Agent shall apply such payment to the outstanding Prime Rate
Loans until such Revolving Loans are paid in full and then to the outstanding LIBOR Rate Loans.

Neither Agent nor any Lender shall be responsible for any failure by any other Lender to
perform its obligations to make Revolving Loans hereunder, and the failure of any Lender to make
its Pro Rata Share of any Revolving Loan hereunder shall not relieve any other Lender of its
obligation, if any, to make its Pro Rata Share of any Revolving Loans hereunder.

If Borrower makes a request for a Revolving Loan as provided herein Agent, at its option and
in its sole discretion, shall do either of the following:

(i) advance the amount of the proposed Revolving Loan to Borrower disproportionately (a
“Disproportionate Advance”) out of Agent’s own funds on behalf of Lenders, which advance
shall be on the same day as Borrower’s request therefor with respect to Prime Rate Loans if
Borrower notifies Agent of such request by 1:00 P.M. (Chicago time) on such day, and request
settlement in accordance with Section 18 hereof such that upon such settlement each
Lender’s share of the outstanding Revolving Loans (including, without limitation, the amount
of any Disproportionate Advance) equals its Pro Rata Share; or

(ii) Notify each Lender by telecopy, electronic mail or other similar form of
teletransmission of the proposed advance on the same day Agent is notified or deemed
notified by Borrower of Borrower’s request for an advance pursuant to this subsection
2(a). Each Lender shall remit, to the demand deposit account designated by Borrower
(i) with respect to Prime Rate Loans, at or prior to 3:00 P.M., Chicago time, on the date of
notification, if such notification is made before 1:00 P.M., Chicago time, or 10:00 A.M.,
Chicago time, on the Business Day immediately succeeding the date of such notification, if
such notification is made after 1:00 P.M., Chicago time, and (ii) with respect to LIBOR Rate
Loans, at or prior to 10:30 A.M., Chicago time, on the date such LIBOR Rate Loans are to be
advanced, immediately available funds in an amount equal to such Lender’s Pro Rata Share of
such proposed advance.

If and to the extent that a Lender does not settle with Agent as required under this Agreement (a
"Defaulting Lender”) Borrower and Defaulting Lender severally agree to repay to Agent forthwith on
demand such amount required to be paid by such Defaulting Lender to Agent, together with interest
thereon, for each day from the date such amount is made available to Borrower until the date such
amount is repaid to Agent (x) in the case of a Defaulting Lender at the rate published by the
Federal Reserve Bank of New York on the next succeeding Business Day as the “Federal Funds Rate” or
if no such rate is published for any Business Day, at the average rate quoted for such day for such
transactions from three (3) federal funds brokers of recognized standing selected by Agent, and
(y) in the case of Borrower, at the interest rate applicable at such time for such Revolving Loans;
provided, that Borrower’s obligation to repay such advance to Agent shall not relieve such
Defaulting Lender of its liability to Agent for failure to settle as provided in this Agreement.

Borrower hereby authorizes Agent, in its sole discretion determined in good faith, to charge
any of Borrower’s accounts or advance Revolving Loans to make any payments of principal, interest,
fees, reasonable and documented costs or reasonable and documented expenses required to be made
under this Agreement or the Other Agreements.

A request for a Revolving Loan shall be made or shall be deemed to be made, each in the
following manner: Borrower shall give Agent same day notice, no later than 1:00 P.M. (Chicago
time) on such day, of its request for a Revolving Loan as a Prime Rate Loan, and at least three (3)
Business Days prior notice of its request for a Revolving Loan as a LIBOR Rate Loan, in which
notice Borrower shall specify the amount of the proposed borrowing, the applicable Interest Period
for LIBOR Rate Loans, and the proposed borrowing date; provided, however, that no such request may
be made at a time when there exists an Event of Default or an event which, with the passage of time
or giving of notice, will become an Event of Default. In the event that Borrower maintains a
controlled disbursement account at LaSalle, each check presented for payment against such
controlled disbursement account and any other charge or request for payment against such controlled
disbursement account shall constitute, to the extent there are insufficient funds in such
controlled disbursement account to make such payment, a request for a Revolving Loan as a Prime
Rate Loan in an amount equal to any such insufficient funds. As an accommodation to Borrower,
Agent may permit telephone requests for Revolving Loans and electronic transmittal of instructions,
authorizations, agreements or reports to Agent by Borrower. Unless Borrower specifically directs
Agent in writing not to accept or act upon telephonic or electronic communications from Borrower,
Agent shall have no liability to Borrower for any loss or damage suffered by Borrower as a result
of Agent’s honoring of any requests, execution of any instructions, authorizations or agreements or
reliance on any reports communicated to it telephonically or electronically and purporting to have
been sent to Agent by Borrower and Agent shall have no duty to verify the origin of any such
communication or the authority of the Person sending it, except, in each case, to the extent Agent
is grossly negligent or commits willful misconduct.

Borrower hereby irrevocably authorizes Agent to disburse the proceeds of each Revolving Loan
requested by Borrower, or deemed to be requested by Borrower, as follows: the proceeds of each
Revolving Loan requested under subsection 2(a) shall be disbursed by Agent in lawful money
of the United States of America in immediately available funds, in the case of the initial
borrowing, in accordance with the terms of the written disbursement letter from Borrower, and in
the case of each subsequent borrowing, by wire transfer, book transfer or Automated Clearing House
(ACH) transfer to such bank account as may be agreed upon by Borrower and Agent from time to time,
or elsewhere if pursuant to a written direction from Borrower.

        .

(c) Section 14 of the Amended and Restated Loan Agreement is hereby amended and restated in
its entirety, as follows:

14. Until payment and satisfaction in full of all Liabilities and the termination of this
Agreement, unless Borrower obtains Requisite Lenders’ prior written consent waiving or modifying
any of Borrower’s financial covenants hereunder in any specific instance, Borrower shall maintain
and keep in full force and effect each of the financial covenants set forth below:

(a) Tangible Net Worth.

Borrower’s Tangible Net Worth shall not as of the last day of each fiscal quarter of
Borrower be less than the Minimum Tangible Net Worth; “Minimum Tangible Net Worth”
being defined for purposes of this subsection as (i) $6,500,000 at all times from
the date hereof through December 31, 2005, (ii) $6,000,000 at all times from January
1, 2006 through June 30, 2006, (iii) $6,750,000 at all times from July 1, 2006
through September 30, 2006, (iv) $7,750,000 at all times from October 1, 2006
through December 31, 2006, and (v) thereafter, for each other fiscal quarter of
Borrower, the Minimum Tangible Net Worth during the immediately preceding fiscal
quarter of Borrower plus fifty percent (50%) of Borrower’s positive net income for
such fiscal quarter as reflected on Borrower’s financial statements delivered
pursuant to subsection 9(c) for such fiscal quarter; and “Tangible Net
Worth” being defined for purposes of this subsection as of any particular date, the
difference between (a) total shareholders equity, minus (b) the value of Borrower’s
unamortized debt discount and expense, prepaid expenses, deposits, unamortized
deferred charges (including deferred income tax assets with a maximum limit of up to
Twelve Million and No/100 Dollars ($12,000,000.00)), goodwill, organization costs,
noncompetition agreements, patents, copyrights, trademarks and other intangible
items, all as determined in accordance with generally accepted accounting principles
applied on a basis consistent with the financial statement dated August 27, 2006
except as set forth herein.

(b) Maximum Cash Restructuring Charge.

Borrower shall not incur cash restructuring charges in excess of (i) $5,000,000 in
the aggregate in connection with the Restructuring Plan during the period between
January 1, 2006 and December 31, 2006, (ii) $2,500,000 in the aggregate during the
period between January 1, 2007 and December 31, 2007, and (iii) $2,500,000 in the
aggregate during the period between January 1, 2008 and December 31, 2008.

(c) Fixed Charge Coverage.

Borrower shall not permit the ratio of its EBITDA to Fixed Charges for each
period set forth below to be less than the amount set forth for such period:

	 	 	 
	Ratio	 	Date
	.40 : 1.00

	 	For the trailing 9 months ending September 2006
	 

	 	 
	 
	 	 
	.55 : 1.00

	 	For the trailing 12 months ending December 2006
	 

	 	 
	 
	 	 
	.65 : 1.00

	 	For the trailing 12 months ending March 2007
	 

	 	 
	 
	 	 
	.75 : 1.00

	 	For the trailing 12 months ending June 2007
	 

	 	 
	 
	 	 
	.85 : 1.00

	 	For the trailing 12 months ending September 2007
	 

	 	 
	 
	 	 
	1.00 : 1.00

	 	For the trailing 12 months ending December 2007 and for

the trailing 12 months periods ending on the last day of

each fiscal quarter thereafter
	 

	 	 

2. Representations and Warranties of Borrower. Borrower represents and warrants that,
as of the date hereof:

(a) The execution, delivery and performance by Borrower of this Amendment, are within the
organizational power of Borrower, have been duly authorized by all necessary action, have received
all necessary governmental approval (if any shall be required), other than approvals which could
not reasonably be expected to have a Material Adverse Effect on Borrower, and do not and will not
contravene or conflict with any provision of law applicable to Borrower, the articles of
incorporation, by-laws or any other organizational document of Borrower, any order, judgment or
decree of any court or governmental agency, or any agreement, instrument or document binding upon
Borrower or any property of Borrower, in each case, which contravention or conflict could
reasonably be expected to have a Material Adverse Effect on Borrower;

(b) Each of the Amended and Restated Loan Agreement, as amended by this Amendment and the
Other Agreements to which Borrower is a party are the legal, valid and binding obligations of
Borrower, enforceable against Borrower in accordance with their respective terms, except as limited
by applicable bankruptcy, insolvency or other laws related to enforcement of creditor’s rights
generally and general principles of equity related to enforcement;

(c) After giving effect to the amendments set forth herein, no Event of Default or event or
condition which upon notice, lapse of time or both would constitute an Event of Default has
occurred and is continuing; and

(d) After giving effect to the amendments set forth herein, the representations and warranties
of the Borrower contained in the Amended and Restated Loan Agreement and the Other Agreements are
true and accurate as of the date hereof with the same force and effect as if such had been made on
and as of the date hereof, except for those specific to a past date (which shall be true and
correct as of such past date).

3. Conditions Precedent. The effectiveness of this Amendment is subject to the
satisfaction of the following condition precedent:

(a) Agent shall have received this Amendment executed by Borrower, Agent and LaSalle Bank
National Association;

(b) Agent shall have received the Consent and Reaffirmation executed by each Obligor (other
than the Borrower);

(c) Borrower shall pay to Agent a one-time amendment fee of Twenty-Five Thousand and No/100
Dollars ($25,000.00) which fee shall be fully earned and payable on the date this Amendment is
executed by Agent;

(d) Borrower shall pay to Agent a one time line increase fee of Twelve Thousand Five Hundred
and No/100 Dollars ($12,500.00), which fee shall be fully earned by Lender and payable on the date
this Amendment is executed by Agent;

(e) Borrower shall have paid a legal fee of One Thousand and No/100 ($1,000.00) for Agent’s
internal legal costs to prepare this Amendment; and

(f) All proceedings taken in connection with this Amendment and all documents, instruments and
other legal matters incident thereto shall be satisfactory to Agent and its legal counsel such
acceptance to be evidenced by Agent’s execution hereof.

4. No Novation. This Amendment is not intended to nor shall be construed to create a
novation or accord and satisfaction with respect to any of the Liabilities.

5. Severability. Any provision of this Amendment that is 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.

6. Ratification. Except as expressly waived and modified hereby, the Amended and
Restated Loan Agreement and the Other Agreements each hereby are ratified and confirmed by the
parties hereto and remain in full force and effect in accordance with the respective terms thereof.
Agent and Lenders willingness to provide the waivers herein and agree to the amendments herein
shall not be deemed to indicate or require Agent’s or Lenders’ willingness to agree to any
deviation from the terms of the Amended and Restated Loan Agreement (as modified hereby) in the
future.

7. Choice of Law. This Amendment shall be governed and controlled by the laws of the
State of Illinois as to interpretation, enforcement, validity, construction, effect and in all
other respects.

[Remainder of page intentionally left blank, signatures to follow]

1

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under
seal and delivered by their respective duly authorized officers on the date first written above.

	 	 	 
	 	 	LASALLE BANK NATIONAL ASSOCIATION, as Agent
	 	 	and a Lender
	 	 	By/s/ Andrew J. Heinz
	 	 	Its First Vice President
	 	 	APAC CUSTOMER SERVICES, INC.,
	 	 	as Borrower
	 	 	By /s/George H. Hepburn III
	 	 	Its SVP & CFO
	Dated: October 25, 2006

	 	

	 

	 	

2

CONSENT AND REAFFIRMATION

The undersigned (“Guarantors”), hereby (i) acknowledge receipt of a copy of the foregoing
Amendment No. 4 to Amended and Restated Loan and Security Agreement (the “Amendment”); (ii) consent
to Borrower’s execution and delivery of the Amendment; and (iii) reaffirm that each of the Other
Agreements that it is a party to continue to remain in full force and effect. Although Guarantors
have been informed of the matters set forth herein and have acknowledged same, Guarantors
understand that Agent and Lenders have no obligation to inform Guarantors of such matters in the
future or to seek Guarantors’ acknowledgment to future amendments, waivers or consents, and nothing
herein shall create such a duty.

IN WITNESS WHEREOF, Guarantors have executed this Consent and Reaffirmation on and as of the
date of the Amendment.

	 
	APAC CUSTOMER SERVICES, L.L.C.
	APAC CUSTOMER SERVICES OF ILLINOIS, INC.
	APAC CUSTOMER SERVICES GENERAL
	PARTNER, INC.
	ITI HOLDINGS, LLC
	APAC CUSTOMER SERVICES OF IOWA, L.L.C.
	APAC CUSTOMER SERVICES OF TEXAS, L.P.
	by its general partner, APAC Customer Services General Partner, Inc.
	Each By Robert J. Keller
	Its President & CEO
	 

Amendment No. 4 To Amended And Restated Loan And Security Agreement_v

FINAL

3

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