Document:

Exhibit
10.1

 

AMENDMENT NUMBER 3 TO

AND WAIVER UNDER

LOAN AND SECURITY AGREEMENT

 

THIS AMENDMENT NUMBER 3 TO AND WAIVER
UNDER LOAN AND SECURITY AGREEMENT (this “Amendment”), dated
as of August 23, 2004, is entered into by AEGIS COMMUNICATIONS GROUP, INC.,
a Delaware corporation (“Parent”), and each of Parent’s Subsidiaries
identified on the signature pages hereof (such Subsidiaries, together with
Parent, are referred to hereinafter each individually as a “Borrower”,
and individually and collectively, jointly and severally, as “Borrowers”),
WELLS
FARGO FOOTHILL, INC., a California corporation, as the arranger and
administrative agent for the Lenders (in such capacity, “Agent”), and
the lenders identified on the signature pages hereof (such lenders, together with
their respective successors and assigns, are referred to hereinafter each
individually as a “Lender” and collectively as the “Lenders”), in
light of the following:

 

W  I  T  N  E  S  S
E  T  H

 

WHEREAS,
Borrowers, Agent and Lenders are parties to that certain Loan and Security
Agreement, dated as of January 26, 2004 (as amended, restated,
supplemented, or modified from time to time, the “Loan Agreement”); and

 

WHEREAS, Borrowers
have informed Agent and Lenders that a violation of the Loan Agreement has
occurred as a result of Borrowers’ failure to comply with certain terms and
provisions thereof; and

 

WHEREAS, Borrowers
have requested that Lenders waive such violation of the Loan Agreement; and

 

WHEREAS, Borrowers
have further requested that the Loan Agreement be amended to modify certain
terms more fully set forth hereinbelow;

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree to amend the Loan Agreement as follows:

 

1.                                      DEFINITIONS  Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to them in the Loan
Agreement, as amended hereby.

 

2.                                      AMENDMENTS
TO LOAN AGREEMENT

 

(a)                                  The
table of Applicable Amounts and Applicable Periods set forth in Section 7.18(a)(i)
of the Loan Agreement is hereby amended and restated in its entirety as
follows:

 

	
  Applicable Amount

  	
   

  	
  Applicable Period (Month-end)

  	
   

  
	
  $

  	
  (7,750,000)

  	
   

  	
  July 2004

  	
   

  
	
  $

  	
  (8,275,000)

  	
   

  	
  August 2004

  	
   

  
	
  $

  	
  (8,650,000)

  	
   

  	
  September 2004

  	
   

  
	
  $

  	
  (8,500,000)

  	
   

  	
  October 2004

  	
   

  
	
  $

  	
  (8,500,000)

  	
   

  	
  November 2004

  	
   

  
	
  $

  	
  (8,225,000)

  	
   

  	
  December 2004

  	
   

  

 

 

(b)                                 Section 7.18(b)(i)
is hereby amended and restated in its entirety as follows:

 

“(b)                           Make:

 

(i)                                     Funded
Capital Expenditures.  Except
as permitted under Section 7.18(b)(ii), Capital Expenditures in any
period in excess of the amount set forth in the following table for the
applicable period:

 

	
  Fiscal
  Year 2004

  	
   

  
	
  $

  	
  1,750,000.00

  	
   

  
			

 

3.                                      WAIVERS.  Borrowers have informed Agent and Lenders
that Borrowers have failed to (a) maintain or achieve EBITDA of not less than
($1,562,000) for the period ending on the last day of the month of June, 2004,
as required under Section 7.18(a)(i) of the Loan Agreement (the “EBITDA
Default”) and (b) comply with the limitation on Capital Expenditures set
forth in Section 7.18(b)(ii) of the Loan Agreement (the “Funded Capital
Expenditures Default”; and together with the EBITDA Default, collectively, the
“Existing Defaults”).  At the Borrowers’
request, Agent and Lenders hereby waive the Existing Defaults, subject to the
terms and conditions set forth herein.

 

4.                                      CONDITIONS
PRECEDENT TO THIS AMENDMENT. 
The satisfaction of each of the following shall constitute conditions
precedent to the effectiveness of this Amendment and each and every provision
hereof:

 

(a)                                  Agent
shall have received for its own account an amendment fee in the amount of
$25,000, which amendment fee shall be fully earned as of the date hereof and
shall not be subject to refund, rebate or proration for any reason whatsoever;

 

(b)                                 The
representations and warranties in the Loan Agreement and the other Loan
Documents shall be true and correct in all respects on and as of the date
hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

 

(c)                                  No
Default or Event of Default shall have occurred and be continuing on the date
hereof or as of the date of the effectiveness of this Amendment; and

 

(d)                                 No
injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated
herein shall have been issued and remain in force by any Governmental Authority
against any Borrower, Agent, or any Lender.

 

2

 

5.                                      CONSTRUCTION.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.

 

6.                                      ENTIRE
AMENDMENT; EFFECT OF AMENDMENT. 
This Amendment, and the terms and provisions hereof, constitute the
entire agreement among the parties pertaining to the subject matter hereof and
supersede any and all prior or contemporaneous amendments relating to the
subject matter hereof.  Except for the
amendments to the Loan Agreement expressly set forth in Section 2
hereof, the Loan Agreement and other Loan Documents shall remain unchanged and
in full force and effect.  To the extent
any terms or provisions of this Amendment conflict with those of the Loan
Agreement or other Loan Documents, the terms and provisions of this Amendment
shall control.  This Amendment is a Loan
Document.

 

7.                                      COUNTERPARTS;
TELEFACSIMILE EXECUTION.  This
Amendment may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument and any of the parties hereto may
execute this Amendment by signing any such counterpart.  Delivery of an executed counterpart of this
Amendment by telefacsimile shall be equally as effective as delivery of an
original executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by
telefacsimile also shall deliver an original executed counterpart of this
Amendment, but the failure to deliver an original executed counterpart shall
not affect the validity, enforceability, and binding effect of this Amendment.

 

8.                                      MISCELLANEOUS

 

(a)                                  Upon
the effectiveness of this Amendment, each reference in the Loan Agreement to
“this Agreement”, “hereunder”, “herein”, “hereof” or words of like import
referring to the Loan Agreement shall mean and refer to the Loan Agreement as
amended by this Amendment.

 

(b)                                 Upon
the effectiveness of this Amendment, each reference in the Loan Documents to
the “Loan Agreement”, “thereunder”, “therein”, “thereof” or words of like
import referring to the Loan Agreement shall mean and refer to the Loan
Agreement as amended by this Amendment.

 

 

[SIGNATURE PAGE FOLLOWS]

 

3

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed and delivered as of
the date first above written.

 

	
   

  	
  AEGIS COMMUNICATIONS GROUP, INC.

  
	
   

  	
  a Delaware
  corporation, as a Borrower and Administrative Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADVANCED TELEMARKETING CORPORATION

  
	
   

  	
  a Nevada
  corporation, as a Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IQI, INC.

  
	
   

  	
  a New York
  corporation, as a Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEXI INTERNATIONAL, INC.

  
	
   

  	
  a California
  corporation, as a Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTERSERV SERVICE CORPORATION

  
	
   

  	
  a Delaware
  corporation, as a Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO FOOTHILL, INC.

  
	
   

  	
  a California
  corporation, as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

4Exhibit 10.2

 

WAIVER AND CONSENT UNDER

AMENDED AND RESTATED SECURED PROMISSORY NOTES

 

THIS
WAIVER UNDER AMENDED AND RESTATED SECURED PROMISSORY NOTES
(this “Waiver”), dated as of August 23, 2004, is entered into by AEGIS
COMMUNICATIONS GROUP, INC., a Delaware corporation (“Aegis”),
Deutsche Bank AG—London, acting through DB Advisors LLC, as Investment Advisor
(“Deutsche Bank”), and Essar Global Limited (“Essar”) (Deutsche Bank and Essar,
together with their respective successors and assigns, are referred to
hereinafter each individually as a “Lender” and collectively as the “Lenders”),
in light of the following:

 

W  I  T  N  E  S  S
E  T  H

 

WHEREAS, Aegis is the maker of those certain Amended and Restated
Secured Promissory Notes dated March 30, 2004, held by Deutsche Bank and
Essar in the principal amounts of $9,170,266.41 and $9,227,340.29, respectively
(the “Notes”);

 

WHEREAS, Aegis and each of its subsidiaries that are signatories
thereto, each of the lenders that are signatories thereto and Wells Fargo
Foothill, Inc., a California corporation, as the Arranger and Administrative
Agent are parties to that certain Loan and Security Agreement, dated as of
January 26, 2004 (as amended, restated, supplemented, or modified from
time to time, the “Loan Agreement”); and

 

WHEREAS, Aegis has informed Lenders that violations of the Notes and
the Loan Agreement have occurred as a result of Borrowers’ failure to comply
with certain terms and provisions thereof; and

 

WHEREAS, Aegis has requested that Lenders waive such violations of the
Notes; and

 

WHEREAS, Aegis has further requested that the Notes be amended to
modify certain terms more fully set forth herein below;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and based upon the following, the
parties hereby agree to amend the Notes and Lenders hereby grant certain
waivers as follows:

 

1.                                      DEFINITIONS

 

Capitalized terms used herein and not otherwise defined herein shall
have the meanings ascribed to them in the Notes.

 

2.                                      AMENDMENT
TO NOTES

 

Upon the due execution and delivery thereof by Aegis, the Notes will be
amended and restated in their entirety as the Third Amended and Restated
Secured Promissory Notes substantially in the forms attached hereto as Exhibit
A (the “New Notes”).

 

 

3.                                      WAIVER

 

Aegis has informed Lenders that Aegis has failed to (a) maintain or
achieve EBITDA of not less than $(1,562,000) for the period ending on the last
day of the month of June, 2004, as required under Section 3.16(a)
of the Notes (the “EBITDA Default”) and (b) comply with the limitation
on Capital Expenditures set forth in Section 3.16(b)(i) of the
Notes (the “Funded Capital Expenditures Default”; and together with the
EBITDA Default, collectively, the “Existing Defaults”). The Existing
Defaults also constitute defaults under the Loan Agreement, and as such,
represent Events of Default under Section 4.10 of the Notes (the “Existing
Defaults Cross-Defaults”).  At the
request of Aegis, Lenders hereby waive any violation of Section 3.16(a)
and 3.16(b)(1) and Section 4.10 of the Notes or any other
provision of the Notes caused by the Existing Defaults and the Existing
Defaults Cross-Default.

 

4.                                      CONDITIONS
PRECEDENT TO THIS WAIVER

 

The satisfaction of each of the following shall constitute conditions
precedent to the effectiveness of this Waiver and each and every provision
hereof:

 

(a)                                  No Default or Event of
Default shall have occurred and be continuing on the date hereof or as of the
date of the effectiveness of this Waiver; and

 

(b)                                 No injunction, writ,
restraining order, or other order of any nature prohibiting, directly or
indirectly, the consummation of the transactions contemplated herein shall have
been issued and remain in force by any Governmental Authority against any Borrower,
Agent, or any Lender.

 

5.                                      CONSTRUCTION

 

THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK APPLICABLE WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW.

 

6.                                      ENTIRE
WAIVER; EFFECT OF WAIVER

 

This Waiver, and the terms and provisions hereof, constitute the entire
agreement among the parties pertaining to the subject matter hereof and
supersede any and all prior or contemporaneous amendments relating to the
subject matter hereof.

 

7.                                      COUNTERPARTS;
TELEFACSIMILE EXECUTION

 

This Waiver may be executed in any number of counterparts, all of which
taken together shall constitute one and the same instrument and any of the
parties hereto may execute this Waiver by signing any such counterpart.  Delivery of an executed counterpart of this
Waiver by telefacsimile shall be equally as effective as delivery of an
original executed counterpart of this Waiver. 
Any party delivering an executed counterpart of this Waiver by telefacsimile
also shall deliver an original executed counterpart of this Waiver,

 

2

 

but the failure to deliver an original executed counterpart shall not
affect the validity, enforceability, and binding effect of this Waiver.

 

 

[SIGNATURE PAGE FOLLOWS]

 

3

 

IN
WITNESS WHEREOF, the parties hereto have caused this Waiver
to be executed and delivered as of the date first above written.

 

	
   

  	
  AEGIS COMMUNICATIONS GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG-LONDON ACTING
  THROUGH DB ADVISORS, LLC AS INVESTMENT ADVISOR

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ESSAR GLOBAL LIMITED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

4

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