Document:

Exhibit
10.10

 

BUSINESS LOAN AGREEMENT

 

	
  Principal

  	
   

  	
  Loan Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No

  	
   

  	
  Call / Coll

  	
   

  	
  Account

  	
   

  	
  Officer

  	
   

  	
  Initials

  	
   

  
	
  $

  	
  15,000,000.00

  	
   

  	
  08-01-2010

  	
   

  	
  08-01-2011

  	
   

  	
   

  	
   

  	
  4A0 /
  9215

  	
   

  	
   

  	
   

  	
  PMF01

  	
   

  	
   

  	
   

  
																	

 

References in the boxes
above are for Lender’s use only and do not limit the applicability of this
document to any particular loan or item.

 

Any item above containing
“***” has been omitted due to text length limitations.

 

	
  Borrower:

  	
  STARTEK, INC.

  	
  Lender:

  	
  UMB BANK COLORADO, n.a.

  
	
   

  	
  STARTEK USA, INC.

  	
   

  	
  DOWNTOWN DENVER BANKING CENTER

  
	
   

  	
  STARTEK CANADA SERVICES, LTD.

  	
   

  	
  1670 BROADWAY

  
	
   

  	
  44 COOK ST., SUITE 400

  	
   

  	
  DENVER, CO 80202-4838

  
	
   

  	
  DENVER, CO 80206

  	
   

  	
  (303) 839-1300

  

 

THIS BUSINESS LOAN AGREEMENT dated August 1,
2010, is made and executed between STARTEK, INC.; STARTEK USA, INC. and
STARTEK CANADA SERVICES, LTD. (“Borrower”) and UMB BANK COLORADO,
n.a.  (“Lender”) on the following terms
and conditions.  Borrower has received
prior commercial loans from Lender or has applied to Lender for a commercial
loan or loans or other financial accommodations, including those which may be
described on any exhibit or schedule attached to this Agreement. Borrower
understands and agrees that: (A) in granting, renewing, or extending any
Loan, Lender is relying upon Borrower’s representations, warranties, and
agreements as set forth in this Agreement; (B) the granting, renewing, or
extending of any Loan by Lender at all times shall be subject to Lender’s sole
judgment and discretion; and (C) all such Loans shall be and remain
subject to the terms and conditions of this Agreement.

 

TERM. This Agreement shall be effective as of August 1,2010
and shall continue in full force and effect until such time as all of Borrower’s
Loans in favor of Lender have been paid in full, including principal, interest,
costs, expenses, attorneys’ fees, and other fees and charges, or until such
time as the parties may agree in writing to terminate this Agreement.

 

LINE OF CREDIT. Lender agrees to make Advances to
Borrower and issue Letters of Credit at Borrower’s request from time to time
from the date of this Agreement to the Expiration Date, provided the aggregate
amount of such Advances outstanding plus Letter of Credit Outstandings at any
time does not exceed the Borrowing Base. Within the foregoing limits, Borrower
may borrow, partially or wholly prepay, and reborrow under this Agreement as
follows: 

 

Conditions Precedent to Each
Advance/Letter of Credit. Lender’s obligation to make any Advance to or for the
account of Borrower under this Agreement is subject to the following conditions
precedent, with all documents, instruments, opinions, reports, and other items
required under this Agreement to be in form and substance satisfactory to
Lender:

 

(1)   Lender shall have received evidence that this
Agreement and all Related Documents have been duly authorized, executed, and
delivered by Borrower to Lender.

 

(2)   Lender shall have received such documents as
Lender may request.

 

(3)   The security interests in the Collateral
shall have been duly authorized, created, and perfected with first lien
priority and shall be in full force and effect.

 

(4)   Lender, at its option and for its sole
benefit, shall have conducted an audit of Borrower’s Accounts, books, records,
and operations, and Lender shall be satisfied as to their condition.

 

(5)   Borrower shall have paid to Lender all fees,
costs, and expenses specified in this Agreement and the Related Documents as
are then due and payable.

 

(6)   There shall not exist at the time of any
Advance or the issuance of any Letter of Credit a condition which would
constitute an Event of Default under this Agreement, and Borrower shall have
delivered to Lender the compliance certificate called for in the paragraph
below titled “Compliance Certificate.” 

 

(7)   Any Letter of Credit must expire no later
than the business day immediately preceding the Maturity Date.

 

Making Loan Advances. Advances under this credit facility, as
well as directions for payment from Borrower’s accounts, may be requested
orally or in writing by authorized persons. Lender may, but need not, require
that all oral requests be confirmed in writing. Each Advance shall be
conclusively deemed to have been made at the request of and for the benefit of
Borrower (1) when credited to any deposit account of Borrower maintained
with Lender or (2) when advanced in accordance with the instructions of an
authorized person. Lender, at its option, may set a cutoff time, after which
all requests for Advances will be treated as having been requested on the next
succeeding Business Day.

 

Issuance of Letters of Credit. Letters of Credit may be issued from time
to time hereunder upon Borrower’s delivery to Lender of an application therefor
in form and substance acceptable to Lender in its sole discretion no later than
seven (7) days prior to the date on which Borrower requests the issuance
of a letter of Credit.

 

Mandatory Loan Repayments. If at any time the aggregate principal
amount of the outstanding Advances and the Letter of Credit Outstandings shall
exceed the applicable Borrowing Base, Borrower, immediately upon written or
oral notice from Lender, shall pay to Lender an amount equal to the difference
between (i) the aggregate outstanding principal balance of the Advances
and the Letter of Credit Outstandings and (ii) the Borrowing Base. On the
Expiration Date, Borrower shall pay to Lender in full the aggregate unpaid
principal amount of all Advances and Letter of Credit Outstandings then
outstanding and all accrued unpaid interest, together with all other applicable
fees, costs and charges, if any, not yet paid. Borrower further agrees to
immediately pay Lender in immediately available funds for any payment or
disbursement made by Lender under any Letter of Credit which has been issued
for Borrower’s account.

 

Loan Account. Lender shall maintain on its books a
record of account in which Lender shall make entries for each Advance and such
other debits and credits as shall be appropriate in connection with the credit
facility. Lender shall provide Borrower with periodic statements of Borrower’s
account, which statements shall be considered to be correct and conclusively
binding on Borrower unless Borrower notifies Lender to the contrary within
thirty (30) days after Borrower’s receipt of any such statement which Borrower
deems to be incorrect.

 

COLLATERAL. To secure payment of the Primary Credit
Facility and performance of all other Loans, obligations and duties owed by
Borrower to Lender, Borrower (and others, if required) shall grant to Lender
Security Interests in such property and assets as Lender may require. Lender’s
Security Interests in the Collateral shall be continuing liens and shall
include the proceeds and products of the Collateral, including without
limitation the proceeds of any insurance. With respect to the Collateral,
Borrower agrees and represents and warrants to Lender:

 

Perfection of Security Interests. Borrower agrees to execute all documents
perfecting Lender’s Security Interest and to take whatever actions are
requested by Lender to perfect and continue Lender’s Security Interests in the
Collateral. Upon request of Lender, Borrower will deliver to Lender any and all
of the documents evidencing or constituting the Collateral, and Borrower will
note Lender’s interest upon any and all chattel paper and instruments if not
delivered to Lender for possession by Lender. Contemporaneous with the
execution of this Agreement, Borrower will execute one or more UCC financing
statements and any similar statements as may be required by applicable law, and
Lender will file such financing statements and all such similar statements in
the appropriate location or locations. Borrower hereby appoints Lender as its
irrevocable attorney -in-fact for the purpose of executing any documents
necessary to perfect or to continue any Security Interest. Lender may at any
time, and without further authorization from Borrower, file a carbon,
photograph, facsimile, or other reproduction of any financing statement for use
as a financing statement. Borrower will reimburse Lender for all expenses for
the perfection, termination, and the continuation of the perfection of Lender’s
security interest in the Collateral. Borrower promptly will notify Lender
before any change in Borrower’s name including any change to the assumed
business names of Borrower. Borrower also promptly will notify Lender before
any change in Borrower’s Social Security Number or Employer Identification
Number. Borrower further agrees to notify Lender in writing prior to any change
in address or location of Borrower’s principal governance office or should Borrower
merge or consolidate with any other entity.

 

Collateral Records. Borrower does now, and at all times
hereafter shall, keep correct and accurate records of the Collateral, all of
which records shall be available to Lender or Lender’s representative upon
demand for inspection and copying at any reasonable time. With respect to the
Accounts, Borrower agrees to keep and maintain such records as Lender may
require, including without limitation information concerning Eligible Accounts
and Account balances and agings. Records related to Accounts (Receivables) are
or will be located at above business address. 
The above is an accurate and

 

 

complete list of all locations at which Borrower keeps
or maintains business records concerning Borrower’s collateral.

 

Collateral Schedules. 
Concurrently with the execution and delivery of this Agreement, Borrower
shall execute and deliver to Lender schedules of Accounts and schedules of
Eligible Accounts in form and substance satisfactory to the Lender. Thereafter
supplemental schedules shall be delivered according to the following schedule:
With respect to Eligible Accounts, schedules shall be delivered within 30 days
after each Month.

 

Representations and Warranties
Concerning Accounts.  With respect to the Accounts, Borrower
represents and warrants to Lender: (1) Each Account represented by
Borrower to be an Eligible Account for purposes of this Agreement conforms to
the requirements of the definition of an Eligible Account; (2) All Account
information listed on schedules delivered to Lender will be true and correct,
subject to immaterial variance; and (3) Lender, its assigns, or agents
shall have the right at any time following reasonable advance notice and at
Borrower’s expense to inspect, examine, and audit Borrower’s records and to
confirm with Account Debtors the accuracy of such Accounts.

 

CONDITIONS PRECEDENT TO EACH ADVANCE.
Lender’s
obligation to make the initial Advance and each subsequent Advance under this
Agreement shall be subject to the fulfillment to Lender’s satisfaction of all
of the conditions set forth in this Agreement and in the Related Documents.

 

Loan Documents. Borrower shall provide to Lender the
following documents for the Loan: (1) the Note; (2) Security
Agreements granting to Lender security interests in the Collateral; (3) financing
statements and all other documents perfecting Lender’s Security Interests; (4) evidence
of insurance as required below; (5) together with all such Related
Documents as Lender may require for the Loan; all in form and substance
satisfactory to Lender and Lender’s counsel.

 

Borrower’s Authorization. Borrower shall have provided in form and
substance satisfactory to Lender properly certified resolutions, duly
authorizing the execution and delivery of this Agreement, the Note and the
Related Documents.  In addition, Borrower
shall have provided such other resolutions, authorizations, documents and
instruments as Lender or its counsel, may require.

 

Fees and Expenses Under This
Agreement. Borrower
shall have paid to Lender all fees, costs, and expenses specified in this
Agreement and the Related Documents as are then due and payable.

 

Representations and Warranties. The representations and warranties set
forth in this Agreement, in the Related Documents, and in any document or
certificate delivered to Lender under this Agreement are true and correct in
all material respects.

 

No Event of Default. There shall not exist at the time of any
Advance a condition which would constitute an Event of Default under this
Agreement or under any Related Document.

 

MULTIPLE BORROWERS. This Agreement has been executed by
multiple obligors who are referred to in this Agreement individually,
collectively and interchangeably as “Borrower.” Unless specifically stated to
the contrary, the word “Borrower” as used in this Agreement, including without
limitation all representations, warranties and covenants, shall include all
Borrowers. Borrower understands and agrees that, with or without notice to any
one Borrower, Lender may (A) make one or more additional secured or
unsecured loans or otherwise extend additional credit with respect to any other
Borrower; (B) with respect to any other Borrower alter, compromise, renew,
extend, accelerate, or otherwise change one or more times the time for payment
or other terms of any indebtedness, including increases and decreases of the
rate of interest on the indebtedness; (C) exchange, enforce, waive,
subordinate, fail or decide not to perfect, and release any security, with or
without the substitution of new collateral; (D) release, substitute, agree
not to sue, or deal with any one or more of Borrower’s or any other Borrower’s
sureties, endorsers, or other guarantors on any terms or in any manner Lender
may choose; (E) determine how, when and what application of payments and
credits shall be made on any indebtedness; (F) apply such security and
direct the order or manner of sale of any Collateral, including without
limitation, any non-judicial sale permitted by the terms of the controlling
security agreement or deed of trust, as Lender in its discretion may determine;
(G) sell, transfer, assign or grant participations in all or any part of the
Loan; (H) exercise or refrain from exercising any rights against Borrower
or others, or otherwise act or refrain from acting; (I) settle or
compromise any indebtedness; and (J) subordinate the payment of all or any
part of any of Borrower’s indebtedness to Lender to the payment of any
liabilities which may be due Lender or others.

 

REPRESENTATIONS AND WARRANTIES. 
Borrower represents and warrants to Lender, as of the date of this
Agreement, as of the date of each disbursement of loan proceeds, as of the date
of any renewal, extension or modification of any Loan, and at all times any
Indebtedness exists:

 

Organization. STARTEK, INC. is a corporation for
profit which is, and at all times shall be, duly organized, validly existing,
and in good standing under and by virtue of the laws of the State of Delaware.
STARTEK, INC. is duly authorized to transact business in all other states
in which STARTEK, INC. is doing business, having obtained all necessary
filings, governmental licenses and approvals for each state in which STARTEK, INC.
is doing business except where the failure to do so would not have a material
adverse effect on its business or financial condition. Specifically, STARTEK, INC..
is, and at all times shall be, duly qualified as a foreign corporation in all
states in which the failure to so qualify would have a material adverse effect
on its business or financial condition. STARTEK, INC. has the full power
and authority to own its properties and to transact the business in which it is
presently engaged or presently proposes to engage. STARTEK, INC. maintains
an office at 44 COOK ST., SUITE 400, DENVER, CO 80206. Unless STARTEK, INC.
has designated otherwise in writing, the principal office is the office at
which STARTEK, INC. keeps its books and records including its records
concerning the Collateral. STARTEK, INC. will notify Lender prior to any
change in the location of STARTEK, INC.’s state of organization or any
change in STARTEK, INC.’s name. STARTEK, INC. shall do all things
necessary to preserve and to keep in full force and effect its existence,
rights and privileges, and shall comply in all material respects with all
regulations, rules, ordinances, statutes, orders and decrees of any
governmental or quasi -governmental authority or court applicable to STARTEK, INC.
and STARTEK, INC.’s business activities.

 

STARTEK USA, INC. is a corporation for profit
which is, and at all times shall be, duly organized, validly existing, and in
good standing under and by virtue of the laws of the State of Colorado. STARTEK
USA, INC. is duly authorized to transact business in all other states in
which STARTEK USA, INC. is doing business, having obtained all necessary
filings, governmental licenses and approvals for each state in which STARTEK
USA, INC. is doing business except where the failure to do so would not
have a material adverse effect on its business or financial condition.
Specifically, STARTEK USA, INC. is, and at all times shall be, duly
qualified as a foreign corporation in all states in which the failure to so
qualify would have a material adverse effect on its business or financial
condition. STARTEK USA, INC. has the full power and authority to own its
properties and to transact the business in which it is presently engaged or
presently proposes to engage. STARTEK USA, INC. maintains an office at 44
COOK ST., 4TH FLOOR, DENVER, CO 80206. Unless STARTEK USA, INC. has designated
otherwise in writing, the principal office is the office at which STARTEK USA, INC.
keeps its books and records including its records concerning the Collateral.
STARTEK USA, INC. will notify Lender prior to any change in the location
of STARTEK USA, INC.’s state of organization or any change in STARTEK USA, INC.’s
name. STARTEK USA, INC. shall do all things necessary to preserve and to
keep in full force and effect its existence, rights and privileges, and shall
comply in all material respects with all regulations, rules, ordinances,
statutes, orders and decrees of any governmental or quasi-governmental
authority or court applicable to STARTEK USA, INC. and STARTEK USA, INC.’s
business activities.

 

STARTEK CANADA SERVICES, LTD. is a limited
company for profit which is, and at all times shall be, duly organized, validly
existing, and in good standing under and by virtue of the laws of the Province
of Nova Scotia. STARTEK CANADA SERVICES, LTD. is duly authorized to transact
business in all other provinces or jurisdictions in which STARTEK CANADA
SERVICES, LTD. is doing business, having obtained all necessary filings,
governmental licenses and approvals for each province or jurisdiction in which
STARTEK CANADA SERVICES, LTD. is doing business except where the failure
to do so would not have a material adverse effect on its business or financial
condition. Specifically, STARTEK CANADA SERVICES, LTD. is, and at all
times shall be, duly qualified as a foreign corporation in all provinces and
jurisdictions in which the failure to so qualify would have a material adverse
effect on its business or financial condition. STARTEK CANADA SERVICES, LTD.
has the full power and authority to own its properties and to transact the
business in which it is presently engaged or presently proposes to engage.
STARTEK CANADA SERVICES, LTD. maintains an office at 44 COOK ST., SUITE
400, DENVER, CO 80206. Unless STARTEK CANADA SERVICES, LTD. has designated
otherwise in writing, the principal office is the office at which STARTEK CANADA
SERVICES, LTD. keeps its books and records including its records
concerning the Collateral.  STARTEK
CANADA SERVICES, LTD. will notify Lender prior to any change in the
location of STARTEK CANADA SERVICES, LTD.’s province of organization or
any change in STARTEK CANADA SERVICES, LTD.’s name. STARTEK CANADA
SERVICES, LTD. shall do all things necessary to preserve and to keep in full
force and effect its existence, rights and privileges, and shall comply in all
material respects with all regulations, rules, ordinances, statutes, orders and
decrees of any governmental or quasi-governmental authority or court applicable
to STARTEK CANADA SERVICES, LTD. and STARTEK CANADA SERVICES, LTD.’s
business activities.

 

Assumed Business Names. Borrower has filed or recorded all
documents or filings required by law relating to all assumed business names
used by Borrower. Excluding the name of Borrower, the following is a complete
list of all assumed business names under which Borrower does business:  None.

 

Authorization. Borrower’s execution, delivery, and
performance of this Agreement and all the Related Documents have been duly
authorized by all necessary action by Borrower and do not conflict with, result
in a violation of, or constitute a default under (1) any provision of (a) Borrower’s
articles of incorporation or organization, or bylaws, or (b) any agreement
or other instrument binding upon Borrower or (2) any law, governmental
regulation, court decree, or order applicable to Borrower or to Borrower’s
properties except with respect to any violations or defaults which would not
result in a material adverse effect on Borrower’s properties, business or
financial condition.

 

 

Financial Information. Each of Borrower’s financial statements
supplied to Lender present fairly in all material respects Borrower’s financial
condition as of the date of the statement, and there has been no material
adverse change in Borrower’s financial condition subsequent to the date of the
most recent financial statement supplied to Lender. Borrower has no material
contingent obligations except as disclosed in such financial statements.

 

Legal Effect. This Agreement constitutes, and any
instrument or agreement Borrower is required to give under this Agreement when
delivered will constitute legal, valid, and binding obligations of Borrower
enforceable against Borrower in accordance with their respective terms.

 

Properties. Except as contemplated by this Agreement
or as previously disclosed in Borrower’s financial statements or in writing to
Lender and as accepted by Lender, and except for property tax liens for taxes
not presently due and payable, Borrower owns and has good title to all of
Borrower’s owned properties free and clear of all Security Interests, and has
not executed any security documents or financing statements relating to such
properties. All of Borrower’s properties are titled in Borrower’s legal name,
and Borrower has not used or filed a financing statement under any other name
for at least the last five (5) years.

 

Hazardous Substances. 
Except as disclosed to and acknowledged by Lender in writing, Borrower
represents and warrants that to its knowledge: (1) During the period of
Borrower’s ownership of the Collateral, there has been no use, generation,
manufacture, storage, treatment, disposal, release or threatened release of any
Hazardous Substance by any person on, under, about or from any of the
Collateral. (2) Borrower has no knowledge of, or reason to believe that
there has been (a) any breach or violation of any Environmental Laws; (b) any
use, generation, manufacture, storage, treatment, disposal, release or
threatened release of any Hazardous Substance on, under, about or from the
Collateral by any prior owners or occupants of any of the Collateral; or (c) any
actual or threatened litigation or claims of any kind by any person relating to
such matters. (3) Neither Borrower nor any tenant, contractor, agent or
other authorized user of any of the Collateral shall use, generate,
manufacture, store, treat, dispose of or release any Hazardous Substance on,
under, about or from any of the Collateral; and any such activity shall be
conducted in material compliance with all applicable federal, state, and local
laws, regulations, and ordinances, including without limitation all Environmental
Laws. Borrower authorizes Lender and its agents to enter upon the Collateral to
make such inspections and tests as Lender may deem appropriate to determine
compliance of the Collateral with this section of the Agreement. Any
inspections or tests made by Lender shall be at Borrower’s expense and for
Lender’s purposes only and shall not be construed to create any responsibility
or liability on the part of Lender to Borrower or to any other person. The
representations and warranties contained herein are based on Borrower’s due
diligence in investigating the Collateral for hazardous waste and Hazardous
Substances. Borrower hereby (1) releases and waives any future claims
against Lender for indemnity or contribution in the event Borrower becomes
liable for cleanup or other costs under any such laws, and (2) agrees to
indemnify, defend, and hold harmless Lender against any and all claims, losses,
liabilities, damages, penalties, and expenses which Lender may directly or
indirectly sustain or suffer resulting from a breach of this section of the
Agreement or as a consequence of any use, generation, manufacture, storage,
disposal, release or threatened release of a hazardous waste or substance on
the Collateral. The provisions of this section of the Agreement, including the
obligation to indemnify and defend, shall survive the payment of the
Indebtedness and the termination, expiration or satisfaction of this Agreement
and shall not be affected by Lender’s acquisition of any interest in any of the
Collateral, whether by foreclosure or otherwise.

 

Litigation and Claims. No material litigation, claim,
investigation, administrative proceeding or similar action (including those for
unpaid taxes) against Borrower is pending or to its knowledge threatened, and
no other event has occurred which may materially adversely affect Borrower’s
financial condition or properties, other than litigation, claims, or other
events, if any, that have been disclosed to and acknowledged by Lender in
writing.

 

Taxes. To the best of Borrower’s knowledge, all
of Borrower’s tax returns and reports that are or were required to be filed,
have been filed, and all taxes, assessments and other governmental charges have
been paid in full, except those presently being or to be contested by Borrower
in good faith in the ordinary course of business and for which adequate
reserves have been provided.

 

Lien Priority. 
Unless otherwise previously disclosed to Lender in writing, Borrower has
not entered into or granted any Security Agreements, or permitted the filing or
attachment of any Security Interests on or affecting any of the Collateral
directly or indirectly securing repayment of Borrower’s Loan and Note, that
would be prior or that may in any way be superior to Lender’s Security
Interests and rights in and to such Collateral.

 

Binding Effect. This Agreement, the Note, all Security
Agreements (if any), and all Related Documents are binding upon the signers
thereof, as well as upon their successors, representatives and assigns, and are
legally enforceable in accordance with their respective terms.

 

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender
that, so long as this Agreement remains in effect, Borrower will:

 

Notices of Claims and Litigation. Promptly inform Lender in writing of (1) all
material adverse changes in Borrower’s financial condition, and (2) all
existing and all threatened litigation, claims, investigations, administrative
proceedings or similar actions affecting Borrower or any Guarantor which could
materially affect the financial condition of Borrower or the financial
condition of any Guarantor.

 

Financial Records. Maintain its books and records in
accordance with GAAP, applied on a consistent basis, and permit Lender to
examine and audit Borrower’s books and records at all reasonable times.

 

Financial Statements. Furnish Lender with the following:

 

Annual Statements. As soon as available, but in no event
later than ninety (90) days after the end of each fiscal year, Borrower’s
balance sheet and income statement for the year ended, audited by a certified
public accountant satisfactory to Lender.

 

Interim Statements. As soon as available, but in no event
later than forty-five (45) days after the end of each month, Borrower’s balance
sheet and profit and loss statement for the period ended, prepared by Borrower.

 

All financial reports required to be provided under
this Agreement shall be prepared in accordance with GAAP, applied on a
consistent basis, and certified by Borrower as being true and correct.

 

Additional Information. Furnish such additional information and
statements, as Lender may reasonably request from time to time.

 

Additional Requirements.  RATIO
OF TOTAL LIABILITIES TO TANGIBLE NET WORTH. 
At all times while any Loans are outstanding or made available under the
Note hereunder and until all Loans of the Borrower hereunder are paid in full,
this ratio will never exceed 1.0 to 1.0. This is calculated as follows: [Total
Liabilities] divided by [Tangible Net Worth].

 

TANGIBLE NET WORTH.  At all times
while any Loans are outstanding or made available under the Note hereunder and
until all Loans to the Borrower hereunder are paid in full, the Borrower will
maintain a Tangible Net Worth, of not less than $100,000,000.00. Tangible Net
Worth is defined as Book Net Worth minus any and all intangibles, including
goodwill.

 

LIQUIDITY REQUIREMENT.  Maintain
unencumbered liquid assets of $10,000,000.00, measured on the last day of each
fiscal quarter. Liquid assets are defined as cash, certificate of deposits, and
marketable securities.

 

CASH FLOW COVERAGE RATIO.  At
all times while any Loans are outstanding or made available under the Note
hereunder and until all Loans of the Borrower hereunder are paid in full, the
Borrower will maintain a Cash Flow Coverage ratio measured on the last day each
fiscal quarter for the twelve month period then ending, of not less than 1.50
to 1.00. This ratio is calculated as follows: [Net Income, minus dividends,
plus depreciation, plus interest expense] divided by [interest expense plus
current portion of long term debt].

 

Insurance. Maintain fire and other risk insurance,
public liability insurance, and such other insurance as Lender may reasonably
require with respect to Borrower’s properties and operations, in form, amounts,
coverages and with insurance companies reasonably acceptable to Lender.
Borrower, upon request of Lender, will deliver to Lender from time to time the
policies or certificates of insurance in form satisfactory to Lender, including
stipulations that coverages will not be cancelled or diminished without at
least thirty (30) days prior written notice to Lender. Each insurance policy
also shall include an endorsement providing that coverage in favor of Lender
will not be impaired in any way by any act, omission or default of Borrower or
any other person. In connection with all policies covering assets in which
Lender holds or is offered a security interest for the Loans, Borrower will
provide Lender with such lender’s loss payable or other endorsements as Lender
may require.

 

Insurance Reports. Furnish to Lender, upon request of
Lender, reports on each existing insurance policy showing such information as
Lender may reasonably request, including without limitation the following: (1) the
name of the insurer; (2) the risks insured; (3) the amount of the
policy; (4) the properties insured; (5) the then current property
values on the basis of which insurance has been obtained, and the manner of
determining those values; and (6) the expiration date of the policy.

 

Other Agreements. Comply in all material respects with all
terms and conditions of all other material agreements, whether now or hereafter
existing, between Borrower and any other party and notify Lender immediately in
writing of any material default in connection with any other such material
agreements.

 

Loan Fees, Charges and Expenses. In addition to all other agreed upon
fees, charges, and expenses, pay the following:  UNUSED FEE. Borrower shall pay to Lender a fee equal to 25 basis
points per annum multiplied by the average daily amount by which the Revolving
Credit

 

 

Maximum Amount exceeds the sum of the
outstanding principal balance of the Revolving Credit Loans. The Commitment Fee
shall be payable quarterly in arrears on September 30, 2010 and on the
last day of each quarter thereafter.

 

Loan Proceeds. Use all Loan proceeds solely for Borrower’s
business operations and, provided that Borrower is in compliance with the
financial covenants in this Agreement, for the purchase of call centers, unless
specifically consented to the contrary by Lender in writing.

 

Taxes, Charges and Liens. Pay and discharge when due all of its
indebtedness and obligations, including without limitation all assessments,
taxes, governmental charges, levies and liens, of every kind and nature, imposed
upon Borrower or its properties, income, or profits, prior to the date on which
penalties would attach, and all lawful claims that, if unpaid, might become a
lien or charge upon any of Borrower’s properties, income, or profits. Provided
however, Borrower will not be required to pay and discharge any such
assessment, tax, charge, levy, lien or claim so long as (1) the legality
of the same shall be contested in good faith by appropriate proceedings, and (2) Borrower
shall have established on Borrower’s books adequate reserves with respect to
such contested assessment, tax, charge, levy, lien, or claim in accordance with
GAAP.

 

Performance. 
Perform and comply, in a timely manner, with all terms, conditions, and
provisions set forth in this Agreement, in the Related Documents, and in all
other instruments and agreements between Borrower and Lender. Borrower shall
notify Lender immediately in writing of any material default in connection with
any agreement.

 

Operations. Maintain executive and management personnel
with substantially the same qualifications and experience as the present
executive and management personnel; conduct its business affairs in a
reasonable and prudent manner.

 

Environmental Studies. Promptly conduct and complete, at
Borrower’s expense, all such investigations, studies, samplings and testings as
may be reasonably requested by Lender or any governmental authority relative to
any substance, or any waste or by-product of any substance defined as toxic or
a hazardous substance under applicable federal, state, or local law, rule,
regulation, order or directive, at or affecting any property or any facility
owned, leased or used by Borrower.

 

Compliance with Governmental
Requirements. Comply
in all material respects with all laws, ordinances, and regulations, now or
hereafter in effect, of all governmental authorities applicable from time to
time to the conduct of Borrower’s properties, businesses and operations, and to
the use or occupancy of the Collateral, including without limitation, the Americans
With Disabilities Act. Borrower may contest in good faith any such law,
ordinance, or regulation and withhold compliance during any proceeding,
including appropriate appeals, so long as Borrower has notified Lender in
writing prior to doing so and so long as, in Lender’s sole opinion, Lender’s
interests in the Collateral are not jeopardized. In such event, Lender may
require Borrower to post adequate security or a surety bond, reasonably
satisfactory to Lender, to protect Lender’s interest.

 

Inspection. Permit employees or agents of Lender at
any reasonable time to inspect any and all Collateral for the Loan or Loans and
Borrower’s other properties and to examine or audit Borrower’s books, accounts,
and records and to make copies and memoranda of Borrower’s books, accounts, and
records. If Borrower now or at any time hereafter maintains any records
(including without limitation computer generated records and computer software
programs for the generation of such records) in the possession of a third party,
Borrower, upon request of Lender, shall notify such party to permit Lender free
access to such records at all reasonable times and to provide Lender with
copies of any records it may request, all at Borrower’s expense.

 

Compliance Certificates. Unless waived in writing by Lender,
provide Lender within forty-five (45) days after the end of each fiscal
quarter, with a certificate executed by Borrower’s chief financial officer, or
other officer or person acceptable to Lender, certifying that the representations
and warranties set forth in this Agreement are true and correct in all material
respects as of the date of the certificate and further certifying that, as of
the date of the certificate, no Event of Default exists under this Agreement.

 

Environmental Compliance and Reports.
Borrower shall
comply in all material respects with any and all Environmental Laws; not cause
or permit to exist, as a result of an intentional or unintentional action or
omission on Borrower’s part or on the part of any third party, on property
owned and/o r occupied by Borrower, any environmental activity where damage may
result to the environment, unless such environmental activity is pursuant to
and in compliance with the conditions of a permit issued by the appropriate
federal, state or local governmental authorities; shall furnish to Lender
promptly and in any event within thirty (30) days after receipt thereof a copy
of any notice, summons, lien, citation, directive, letter or other
communication from any governmental agency or instrumentality concerning any
intentional or unintentional action or omission on Borrower’s part in
connection with any environmental activity whether or not there is damage to
the environment and/or other natural resources.

 

Additional Assurances. Make, execute and deliver to Lender such
promissory notes, mortgages, deeds of trust, security agreements, assignments,
financing statements, instruments, documents and other agreements as Lender or
its attorneys may reasonably request to evidence and secure the Loans and to
perfect all Security Interests.

 

LENDER’S EXPENDITURES. If any action or proceeding is commenced
that would materially affect Lender’s interest in the Collateral or if Borrower
fails to comply with any provision of this Agreement or any Related Documents,
including but not limited to Borrower’s failure to discharge or pay when due
any amounts Borrower is required to discharge or pay under this Agreement or
any Related Documents, Lender on Borrower’s behalf may (but shall not be
obligated to) take any action that Lender deems appropriate, including but not
limited to discharging or paying all taxes, liens, security interests,
encumbrances and other claims, at any time levied or placed on any Collateral
and paying all costs for insuring, maintaining and preserving any Collateral.
All such expenditures incurred or paid by Lender for such purposes will then
bear interest at the rate charged under the Note from the date incurred or paid
by Lender to the date of repayment by Borrower. All such expenses will become a
part of the Indebtedness and, at Lender’s option, will (A) be payable on
demand; (B) be added to the balance of the Note and be apportioned among
and be payable with any installment payments to become due during either (1) the
term of any applicable insurance policy; or (2) the remaining term of the
Note; or (C) be treated as a balloon payment which will be due and payable
at the Note’s maturity.

 

CESSATION OF ADVANCES. If Lender has made any commitment to make
any Loan to Borrower, whether under this Agreement or under any other
agreement, Lender shall have no obligation to make Loan Advances or to disburse
Loan proceeds if: (A) an Event of Default has occurred under the terms of
this Agreement or any of the Related Documents or any other agreement that
Borrower or any Guarantor has with Lender; (B)  Borrower or any Guarantor
dies, becomes incompetent or becomes insolvent, files a petition in bankruptcy
or similar proceedings, or is adjudged a bankrupt; (C) there occurs a
material adverse change in Borrower’s financial condition, in the financial
condition of any Guarantor, or in the value of any Collateral securing any
Loan; or (D) any Guarantor seeks, claims or otherwise attempts to limit,
modify or revoke such Guarantor’s guaranty of the Loan or any other loan with
Lender.

 

RIGHT OF SETOFF. To the extent permitted by applicable
law, Lender reserves a right of setoff in all Borrower’s accounts with Lender
(whether checking, savings, or some other account). This includes all accounts
Borrower holds jointly with someone else and all accounts Borrower may open in
the future. However, this does not include any IRA or Keogh accounts, or any
trust accounts for which setoff would be prohibited by law. Borrower authorizes
Lender, to the extent permitted by applicable law, to charge or setoff all sums
owing on the Indebtedness against any and all such accounts, and, at Lender’s
option, to administratively freeze all such accounts to allow Lender to protect
Lender’s charge and setoff rights provided in this paragraph.

 

DEFAULT. Each of the following shall constitute an
Event of Default under this Agreement:

 

Payment Default. Borrower fails to make any payment when
due under the Loan following the expiration of applicable cure periods, if any.

 

Other Defaults. Borrower fails to comply with or to
perform any other term, obligation, covenant or condition contained in this
Agreement or in any of the Related Documents or to comply with or to perform
any term, obligation, covenant or condition contained in any other agreement
between Lender and Borrower following the expiration of thirty (30) days after
written notice of such default is provided by Lender to Borrower.

 

False Statements. 
Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Agreement or the Related Documents
is false or misleading in any material respect, either now or at the time made
or furnished or becomes false or misleading at any time thereafter.

 

Insolvency. The dissolution or termination of
Borrower’s existence as a going business, the insolvency of Borrower, the
appointment of a receiver for any part of Borrower’s property, any assignment
for the benefit of creditors, any type of creditor workout, or the commencement
of any proceeding under any bankruptcy or insolvency laws by or against
Borrower.

 

Defective Collateralization. This Agreement or any of the Related
Documents ceases to be in full force and effect (including failure of any
collateral document to create a valid and perfected security interest or lien)
at any time and for any reason if such defect has not been cured following the
expiration of thirty (30) days after notice by Lender to Borrower.

 

Creditor or Forfeiture Proceedings. 
Commencement of foreclosure or forfeiture proceedings, whether by
judicial proceeding, self -help, repossession or any other method, by any
creditor of Borrower or by any governmental agency against any collateral
securing the Loan. This includes

 

 

a garnishment of any of Borrower’s accounts, including
deposit accounts, with Lender. However, this Event of Default shall not apply
if there is a good faith dispute by Borrower as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if Borrower gives Lender written notice of the creditor or
forfeiture proceeding and deposits with Lender monies or a surety bond for the
creditor or forfeiture proceeding, in an amount determined by Lender, in its
sole discretion, as being an adequate reserve or bond for the dispute.

 

Change in Ownership. Any person becomes the beneficial owner
of more than fifty percent (50%) of the common stock of Borrower.

 

Adverse Change. A material adverse change occurs in
Borrower’s financial condition, or Lender reasonably believes the prospect of
payment or performance of the Loan is materially impaired.

 

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur,
except where otherwise provided in this Agreement or the Related Documents, all
commitments and obligations of Lender under this Agreement or the Related
Documents or any other agreement immediately will terminate (including any
obligation to make further Loan Advances or disbursements), and, at Lender’s
option, all Indebtedness immediately will become due and payable, all without
notice of any kind to Borrower, except that in the case of an Event of Default
of the type described in the “Insolvency” subsection above, such acceleration
shall be automatic and not optional. In addition, Lender shall have all the
rights and remedies provided in the Related Documents or available at law, in
equity, or otherwise. Except as may be prohibited by applicable law, all of
Lender’s rights and remedies shall be cumulative and may be exercised
singularly or concurrently. Election by Lender to pursue any remedy shall not
exclude pursuit of any other remedy, and an election to make expenditures or to
take action to perform an obligation of Borrower or of any Grantor shall not
affect Lender’s right to declare a default and to exercise its rights and
remedies.

 

ADDITIONAL TERMS.  ORAL
AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM
ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT
ARE NOT ENFORCEABLE. TO PROTECT YOU (BORROWER(S) AND US (LENDER) FROM
MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH
MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE
STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN
WRITING TO MODIFY IT.

 

INSURANCE. Maintain fire and other risk insurance,
public liability insurance, and such other insurance as Lender may require with
respect to Borrower’s properties and operations, in form amounts, coverage and
with insurance companies acceptable to Lender.

 

ADDITIONAL TERMS.  Lender
agrees to make Advances to Borrower from time to time from the date of this
Agreement to the Expiration Date, provided that the aggregate amount of such
Advances outstanding at any time does not exceed the Borrowing Base and
provided further that each and every advance made under this Agreement shall be
at Lender’s sole discretion, Lender having made no commitment to make any such
Advances..

 

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions
are a part of this Agreement:

 

Amendments. This Agreement, together with any Related
Documents, constitutes the entire understanding and agreement of the parties as
to the matters set forth in this Agreement. No alteration of or amendment to
this Agreement shall be effective unless given in writing and signed by the
party or parties sought to be charged or bound by the alteration or amendment.

 

Attorneys’ Fees; Expenses. Borrower agrees to pay upon demand all of
Lender’s reasonable costs and expenses, including Lender’s attorneys’ fees and
Lender’s legal expenses, incurred in connection with the enforcement of this
Agreement. Lender may hire or pay someone else to help enforce this Agreement,
and Borrower shall pay the reasonable costs and expenses of such enforcement.
Costs and expenses include Lender’s attorneys’ fees and legal expenses whether
or not there is a lawsuit, including attorneys’ fees and legal expenses for
bankruptcy proceedings (including efforts to modify or vacate any automatic
stay or injunction), appeals, and any anticipated post-judgment collection
services. Borrower also shall pay all court costs and such additional fees as
may be directed by the court.

 

Caption Headings. 
Caption headings in this Agreement are for convenience purposes only and
are not to be used to interpret or define the provisions of this Agreement.

 

Consent to Loan Participation. Borrower agrees and consents to Lender’s
sale or transfer, whether now or later, of one or more participation interests
in the Loan to one or more purchasers that are affiliates of Lender. Lender may
provide, without any limitation whatsoever, to any one or more of such
purchasers, or potential purchasers, any information or knowledge Lender may
have about Borrower or about any other matter relating to the Loan, and
Borrower hereby waives any rights to privacy Borrower may have with respect to
such matters. Borrower additionally waives any and all notices of sale of
participation interests to Lender’s affiliates, as well as all notices of any
repurchase of such participation interests. Borrower also agrees that the
purchasers of any such participation interests will be considered as the
absolute owners of such interests in the Loan and will have all the rights
granted under the participation agreement or agreements governing the sale of
such participation interests. Borrower further waives all rights of offset or
counterclaim that it may have now or later against Lender or against any such
purchaser of such a participation interest and unconditionally agrees that
either Lender or such purchaser may enforce Borrower’s obligation under the
Loan irrespective of the failure or insolvency of any holder of any interest in
the Loan. Borrower further agrees that the purchaser of any such participation
interests may enforce its interests irrespective of any personal claims or
defenses that Borrower may have against Lender.

 

Governing Law. This Agreement will be
governed by federal law applicable to Lender and, to the extent not preempted
by federal law, the laws of the State of Colorado without regard to its
conflicts of law provisions. This Agreement has been accepted by Lender in the
State of Colorado.

 

Choice of Venue. If there is a lawsuit, Borrower agrees
upon Lender’s request to submit to the jurisdiction of the courts of DENVER
County, State of Colorado.

 

Joint and Several Liability. All obligations of Borrower under this
Agreement shall be joint and several, and all references to Borrower shall mean
each and every Borrower. This means that each Borrower signing below is
responsible for all obligations in this Agreement. Where any one or more of the
parties is a corporation, partnership, limited liability company or similar
entity, it is not necessary for Lender to inquire into the powers of any of the
officers, directors, partners, members, or other agents acting or purporting to
act on the entity’s behalf, and any obligations made or created in reliance
upon the professed exercise of such powers shall be guaranteed under this
Agreement.

 

No Waiver by Lender. Lender shall not be deemed to have waived
any rights under this Agreement unless such waiver is given in writing and
signed by Lender. No delay or omission on the part of Lender in exercising any
right shall operate as a waiver of such right or any other right. A waiver by
Lender of a provision of this Agreement shall not prejudice or constitute a
waiver of Lender’s right otherwise to demand strict compliance with that
provision or any other provision of this Agreement. No prior waiver by Lender,
nor any course of dealing between Lender and Borrower, or between Lender and
any Grantor, shall constitute a waiver of any of Lender’s rights or of any of
Borrower’s or any Grantor’s obligations as to any future transactions. Whenever
the consent of Lender is required under this Agreement, the granting of such
consent by Lender in any instance shall not constitute continuing consent to
subsequent instances where such consent is required and in all cases such
consent may be granted or withheld in the sole discretion of Lender.

 

Notices. Any notice required to be given under
this Agreement shall be given in writing, and shall be effective when actually
delivered, when actually received by telefacsimile (unless otherwise required
by law), when deposited with a nationally recognized overnight courier, or, if
mailed, when deposited in the United States mail, as first class, certified or
registered mail postage prepaid, directed to the addresses shown near the
beginning of this Agreement. Any party may change its address for notices under
this Agreement by giving formal written notice to the other parties, specifying
that the purpose of the notice is to change the party’s address. For notice
purposes, Borrower agrees to keep Lender informed at all times of Borrower’s
current address. Unless otherwise provided or required by law, if there is more
than one Borrower, any notice given by Lender to any Borrower is deemed to be
notice given to all Borrowers.

 

Severability. If a court of competent jurisdiction
finds any provision of this Agreement to be illegal, invalid, or unenforceable
as to any person or circumstance, that finding shall not make the offending
provision illegal, invalid, or unenforceable as to any other person or
circumstance. If feasible, the offending provision shall be considered modified
so that it becomes legal, valid and enforceable. If the offending provision
cannot be so modified, it shall be considered deleted from this Agreement.
Unless otherwise required by law, the illegality, invalidity, or
unenforceability of any provision of this Agreement shall not affect the
legality, validity or enforceability of any other provision of this Agreement.

 

Subsidiaries and Affiliates of
Borrower. To the
extent the context of any provisions of this Agreement makes it appropriate,
including without limitation any representation, warranty or covenant, the word
“Borrower” as used in this Agreement shall include all of Borrower’s
subsidiaries and affiliates. Notwithstanding the foregoing however, under no
circumstances shall this Agreement be construed to require Lender to make any
Loan or other financial accommodation to any of Borrower’s subsidiaries or
affiliates.

 

 

Successors and Assigns. All covenants and agreements by or on
behalf of Borrower contained in this Agreement or any Related Documents shall
bind Borrower’s successors and assigns and shall inure to the benefit of Lender
and its successors and assigns. Borrower shall not, however, have the right to
assign Borrower’s rights under this Agreement or any interest therein, without
the prior written consent of Lender.

 

Survival of Representations and
Warranties.  Borrower understands and agrees that in
extending Loan Advances, Lender is relying on all representations, warranties,
and covenants made by Borrower in this Agreement or in any certificate or other
instrument delivered by Borrower to Lender under this Agreement or the Related
Documents. Borrower further agrees that regardless of any investigation made by
Lender, all such representations, warranties and covenants will survive the
extension of Loan Advances and delivery to Lender of the Related Documents,
shall be continuing in nature, shall be deemed made and redated by Borrower at
the time each Loan Advance is made, and shall remain in full force and effect
until such time as Borrower’s Indebtedness shall be paid in full, or until this
Agreement shall be terminated in the manner provided above, whichever is the
last to occur.

 

Time is of the Essence. Time is of the essence in the performance
of this Agreement.

 

Waive Jury. All parties to this
Agreement hereby waive the right to any jury trial in any action, proceeding,
or counterclaim brought by any party against any other party.

 

DEFINITIONS. The following capitalized words and terms
shall have the following meanings when used in this Agreement. Unless
specifically stated to the contrary, all references to dollar amounts shall
mean amounts in lawful money of the United States of America. Words and terms
used in the singular shall include the plural, and the plural shall include the
singular, as the context may require. Words and terms not otherwise defined in
this Agreement shall have the meanings attributed to such terms in the Uniform
Commercial Code. Accounting words and terms not otherwise defined in this
Agreement shall have the meanings assigned to them in accordance with generally
accepted accounting principles as in effect on the date of this Agreement:

 

Account. The word “Account” means a trade account,
account receivable, other receivable, or other right to payment for goods sold
or services rendered owing to Borrower (or to a third party grantor acceptable
to Lender).

 

Account Debtor. The words “Account Debtor” mean the
person or entity obligated upon an Account.

 

Advance. The word “Advance” means a disbursement
of Loan funds made, or to be made, to Borrower or on Borrower’s behalf under
the terms and conditions of this Agreement.

 

Agreement. The word “Agreement” means this Business
Loan Agreement, as this Business Loan Agreement may be amended or modified from
time to time, together with all exhibits and schedules attached to this
Business Loan Agreement from time to time.

 

Borrower. 
The word “Borrower” means STARTEK, INC.; STARTEK USA, INC. and
STARTEK CANADA SERVICES, LTD. and includes all co-signers and co-makers
signing the Note and all their successors and assigns.

 

Borrowing Base. The words “Borrowing Base” mean
determined by Lender from time to time, the lesser of (1) $15,000,000.00
or (2) 80.00% of the aggregate amount of Eligible Accounts minus any outstanding
LETTERS OF CREDIT (not to exceed in corresponding Loan amount based on Eligible
Accounts $15,000,000.00) .

 

Business Day. The words “Business Day” mean a day on
which commercial banks are open in the State of Colorado.

 

Collateral. The word “Collateral” means all property
and assets granted as collateral security for a Loan, whether real or personal
property, whether granted directly or indirectly, whether granted now or in the
future, and whether granted in the form of a security interest, mortgage,
collateral mortgage, deed of trust, assignment, pledge, crop pledge, chattel
mortgage, collateral chattel mortgage, chattel trust, factor’s lien, equipment
trust, conditional sale, trust receipt, lien, charge, lien or title retention
contract, lease or consignment intended as a security device, or any other
security or lien interest whatsoever, whether created by law, contract, or
otherwise. The word Collateral also includes without limitation all collateral
described in the Collateral section of this Agreement.

 

Eligible Accounts. 
The words “Eligible Accounts” mean at any time, all of Borrower’s
Accounts which contain selling terms and conditions acceptable to Lender. The
net amount of any Eligible Account against which Borrower may borrow shall
exclude all returns, discounts, credits, and offsets of any nature. Unless
otherwise agreed to by Lender in writing, Eligible Accounts do not include: 

 

(1) Accounts with respect to which the Account
Debtor is employee or agent of Borrower.

 

(2) Accounts with respect to which the Account
Debtor is a subsidiary of, or affiliated with Borrower or its shareholders,
officers, or directors.

 

(3) Accounts with respect to which goods are
placed on consignment, guaranteed sale, or other terms by reason of which the payment
by the Account Debtor may be conditional.

 

(4) Accounts with respect to which the Account
Debtor is not a resident of the United States, except to the extent such
Accounts are supported by insurance, bonds or other assurances satisfactory to
Lender.

 

(5) Accounts with respect to which Borrower is or
may become liable to the Account Debtor for goods sold or services rendered by
the Account Debtor to Borrower.

 

(6) Accounts which are subject to dispute,
counterclaim, or setoff but only to the extent thereof.

 

(7) Accounts with respect to which the goods have
not been shipped or delivered, or the services have not been rendered, to the
Account Debtor.

 

(8) Accounts with respect to which Lender, in its
reasonable discretion, deems the creditworthiness or financial condition of the
Account Debtor to be unsatisfactory.

 

(9) Accounts of any Account Debtor who has filed
or has had filed against it a petition in bankruptcy or an application for
relief under any provision of any state or federal bankruptcy, insolvency, or
debtor-in-relief acts; or who has had appointed a trustee, custodian, or
receiver for the assets of such Account Debtor; or who has made an assignment
for the benefit of creditors or has become insolvent or fails generally to pay
its debts (including its payrolls) as such debts become due.

 

(10) Accounts which have not been paid in full
within ninety (90) days from the
invoice date.

 

Environmental Laws. The words “Environmental Laws” mean any
and all state, federal and local statutes, regulations and ordinances relating
to the protection of human health or the environment, including without
limitation the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. (“CERCLA”),
the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499
(“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801,
et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901,
et seq., or other applicable state or federal laws, rules, or regulations
adopted pursuant thereto.

 

Event of Default. The words “Event of Default” mean any of
the events of default set forth in this Agreement in the Default section of
this Agreement. 

 

Expiration Date. The words “Expiration Date” mean the date
of termination of Lender’s commitment to lend under this Agreement.

 

GAAP. The word “GAAP” means generally accepted accounting
principles.

 

Grantor. The word “Grantor” means each and all of
the persons or entities granting a Security Interest in any Collateral for the
Loan, including without limitation all Borrowers granting such a Security
Interest.

 

Guarantor. The word “Guarantor” means any guarantor,
surety, or accommodation party of any or all of the Loan.

 

Guaranty. The word “Guaranty” means the guaranty
from Guarantor to Lender, including without limitation a guaranty of all or
part of the Note.

 

Hazardous Substances. The words “Hazardous Substances” mean
materials that, because of their quantity, concentration or physical, chemical or
infectious characteristics, may cause or pose a present or potential hazard to
human health or the environment when improperly used, treated, stored, disposed
of, generated, manufactured, transported or otherwise handled. The words “Hazardous
Substances” are used in their very broadest sense and include without
limitation any and all hazardous or toxic substances, materials or waste as
defined by or listed under the Environmental Laws. The term “Hazardous
Substances” also includes, without limitation, petroleum and petroleum
by-products or any fraction thereof and asbestos. 

 

Indebtedness. The word “Indebtedness” means the
indebtedness evidenced by the Note or Related Documents, including all
principal and interest together with all other indebtedness and costs and
expenses for which Grantor is responsible under this Agreement or under any of
the Related Documents and (a) the payment of Grantor’s obligations
(whether joint, several or otherwise) to Lender as evidenced by any other note(s) or
other

 

 

evidence of indebtedness executed by such Grantor and
all amendments, modifications, renewals, extensions and substitutions thereof
and all subsequent notes of greater or lesser amounts payable or assigned to
Lender; (b) the performance of each Debtor’s obligations under this
security agreement (“Agreement”); and (c) the payment of any and all other
indebtedness, direct or indirect, mature or unmatured or contingent, joint or
several now or hereafter owed to Secured Party by each Debtor, including
(without limitation) indebtedness unrelated or dissimilar to any indebtedness
in existence or contemplated by any Debtor at the time this Agreement was
executed or at the time such indebtedness is incurred.

 

Lender. The word “Lender” means UMB BANK
COLORADO, n.a., its successors and assigns.

 

Letter of Credit. The words “Letter of Credit” mean one or
more irrevocable standby letters of credit issued by Lender for the account of
Borrower in such form as may be approved by Lender in support of obligations of
Borrower that are permitted to exist under the terms of this Agreement.

 

Letter of Credit Outstandings. The words “Letter of Credit Outstandings”
mean, at any time, the sum of, without duplication, (i) the aggregate Stated Amount
of all Letters of Credit plus (ii) the
aggregate amount of all Unpaid Drawings in respect of all Letters of Credit.

 

Loan. The word “Loan” means any and all loans and financial
accommodations from Lender to Borrower whether now or hereafter existing, and
however evidenced, including without limitation those loans and financial
accommodations described herein or described on any exhibit or schedule
attached to this Agreement from time to time.

 

Note.  The word “Note”
means the Note executed by STARTEK, INC.; STARTEK USA, INC. and
STARTEK CANADA SERVICES, LTD. in the principal amount of $15,000,000.00
dated August 1, 2010, together with all renewals of, extensions of,
modifications of, refinancings of, consolidations of, and substitutions for the
note or credit agreement.

 

Primary Credit Facility. The words “Primary Credit Facility” mean
the credit facility described in the Line of Credit section of this Agreement.

 

Related Documents. The words “Related Documents” mean all
promissory notes, credit agreements, loan agreements, environmental agreements,
guaranties, security agreements, mortgages, deeds of trust, security deeds,
collateral mortgages, and all other instruments, agreements and documents,
whether now or hereafter existing, executed in connection with the Loan.

 

Security Agreement. The words “Security Agreement” mean and
include without limitation any agreements, promises, covenants, arrangements,
understandings or other agreements, whether created by law, contract, or
otherwise, evidencing, governing, representing, or creating a Security Interest.

 

Security Interest. The words “Security Interest” mean,
without limitation, any and all types of collateral security, present and
future, whether in the form of a lien, charge, encumbrance, mortgage, deed of
trust, security deed, assignment, pledge, crop pledge, chattel mortgage,
collateral chattel mortgage, chattel trust, factor’s lien, equipment trust,
conditional sale, trust receipt, lien or title retention contract, lease or
consignment intended as a security device, or any other security or lien
interest whatsoever whether created by law, contract, or otherwise.

 

Stated Amount. The words “Stated Amount” of each Letter
of Credit mean, at any time, the maximum amount available to be drawn
thereunder (regardless of whether any condition for drawing could be met).

 

Unpaid Drawings. The words “Unpaid Drawings” mean any
payment or disbursement made by Lender under any Letter of Credit which has
been issued for Borrower’s account which has not been reimbursed.

 

BORROWER ACKNOWLEDGES HAVING READ ALL
THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT (ASSET BASED) AND BORROWER
AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT (ASSET BASED) IS DATED August 1,
2010.

 

BORROWER:

 

 

	
  STARTEK, INC.

  	
   

  	
   

  
	
  By:

  	
  /S/ A. Laurence Jones

  	
   

  	
  By:

  	
  /S/ David G. Durham

  
	
  A. Laurence Jones, Chief Exec.
  Officer/Pres. of

  	
   

  	
  David G. Durham, Exec.
  VP/CFO/Treasurer of

  
	
  STARTEK, INC.

  	
   

  	
  STARTEK, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STARTEK USA, INC.

  	
   

  	
   

  	
   

  
	
  By:

  	
  /S/ A. Laurence Jones

  	
   

  	
  By:

  	
  /S/ David G. Durham

  
	
  A. Laurence Jones, Chief Exe.
  Officer/Pres. of

  	
   

  	
  David G. Durham, Exec
  VP/CFO/Treasurer of

  
	
  STARTEK USA, INC.

  	
   

  	
  STARTEK USA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STARTEK CANADA SERVICES, LTD.

  	
   

  	
   

  
	
  By:

  	
  /S/ A. Laurence Jones

  	
   

  	
  By:

  	
  /S/ David G. Durham

  
	
  A. Laurence Jones, Chief Exec.
  Officer/Pres. of

  	
   

  	
  David G. Durham, Exec.
  VP/CFO/Treasurer of

  
	
  STARTEK CANADA SERVICES, LTD.

  	
   

  	
  STARTEK CANADA SERVICES, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LENDER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  UMB BANK COLORADO, N.A.

  	
   

  	
   

  
	
  By:

  	
  /S/ John Mastro

  	
   

  	
   

  
	
  Authorized Signer

  	
   

  	
   

  

 

LASER PRO Lending, Ver.
5.44.00.002 Copr. Harland Financial Solutions, Inc. 1997, 2009. All Rights
Reserved. - CO S:\A PPS\hfs\CFI\LPL\C40.FC TR-62141 PR-63 (M)Exhibit
4.1

 

Execution
Version

 

AMENDMENT NO. 1 TO

 

SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP

 

OF

 

EAGLE ROCK ENERGY PARTNERS, L.P.

 

THIS
AMENDMENT NO. 1 TO THE SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP OF EAGLE ROCK ENERGY PARTNERS, L.P. dated as of July 27, 2010
(this “Amendment No. 1”), is entered into by and among Eagle Rock Energy
GP, L.P., a Delaware limited partnership, as the General Partner and as the
lawful attorney-in-fact for the Limited Partners, together with any other
Persons who become Partners in the Partnership or parties hereto as provided
herein.

 

WHEREAS,
the General Partner and Limited Partners entered into the Second Amended and
Restated Agreement of Limited Partnership of Eagle Rock Energy Partners, L.P.
on May 24, 2010 (the “Second Amended and Restated Agreement”);

 

WHEREAS,
the General Partner has determined that this Amendment No. 1 does not
adversely affect the Limited Partners (including any particular class of
Partnership Interests as compared to other classes of Partnership Interests) in
any material respect; and

 

WHEREAS,
this Amendment No. 1 has been approved by the General Partner.

 

NOW,
THEREFORE, pursuant to Section 13.1(d) of the Second Amended and
Restated Agreement, in consideration of the covenants, conditions and
agreements contained herein, the Second Amended and Restated Agreement is
hereby amended as follows:

 

Section 1.               Amendment.  Section 13.4(c)(iv) is hereby
amended by deleting the reference to “20%” in clause (B) of the first
sentence of Section 13.4(c)(iv) and replacing such reference with “10%”.

 

Section 2.               Defined Terms.  Capitalized terms used in this Amendment No. 1
but not otherwise defined shall have the meaning assigned to such terms in the
Second Amended and Restated Agreement.

 

Section 3.               General Authority.  The appropriate officers of the General
Partner are hereby authorized to make such further clarifying and conforming
changes to the Partnership Agreement as they deem necessary or appropriate, and
to interpret the Partnership Agreement, to give effect to the intent and
purpose of this Amendment No. 1.

 

Section 4.               Ratification of Partnership
Agreement.  Except as
expressly modified and amended herein, all of the terms and conditions of the
Second Amended and Restated Agreement shall remain in full force and effect.

 

Section 5.               Governing Law.  This Amendment No. 1 will be governed by
and construed in accordance with the laws of the State of Delaware.

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 as
of the date first written above.

 

 

	
   

  	
  GENERAL
  PARTNER:

  
	
   

  	
   

  
	
   

  	
  EAGLE
  ROCK ENERGY GP, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  EAGLE
  ROCK ENERGY G&P, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph A. Mills

  
	
   

  	
   

  	
  Name:
  Joseph A. Mills

  
	
   

  	
   

  	
  Title:
  Chairman and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LIMITED
  PARTNERS:

  
	
   

  	
   

  
	
   

  	
  All
  Limited Partners now and hereafter Admitted as Limited Partners of the Partnership,
  pursuant to powers of attorney Now and hereafter executed in favor of, and Granted
  and delivered to the General Partner or without execution hereof Pursuant to
  Section 10.1(a) hereof. 

  
	
   

  	
   

  
	
   

  	
  EAGLE
  ROCK ENERGY GP, L.P.

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  EAGLE
  ROCK ENERGY G&P, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Joseph A. Mills

  
	
   

  	
   

  	
  Name:
  Joseph A. Mills

  
	
   

  	
   

  	
  Title:
  Chairman and Chief Executive Officer

  

 

[SIGNATURE
PAGE TO AMENDMENT NO. 1]

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