Document:

Sixth Amended and Restated Secured Promissory Note dated January 3, 2005

 Exhibit 10.53 
  
 THIS SIXTH AMENDED AND RESTATED SECURED PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAW. THIS SIXTH AMENDED AND RESTATED SECURED PROMISSORY NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE AND NEITHER THIS SIXTH AMENDED AND RESTATED SECURED PROMISSORY NOTE NOR ANY INTEREST HEREIN MAY BE
SOLD OR OTHERWISE TRANSFERRED WITHOUT COMPLIANCE WITH THE REGISTRATION AND QUALIFICATION PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM. 
  
 THIS SIXTH AMENDED AND RESTATED SECURED PROMISSORY NOTE IS SUBJECT TO THE TERMS OF AN INTERCREDITOR AND SUBORDINATION AGREEMENT, DATED AS OF
JANUARY 26, 2004 AND REFERRED TO BELOW IN FURTHER DETAIL. 
  
 SIXTH
AMENDED AND RESTATED SECURED PROMISSORY NOTE 
  

			
	 $1,863,471.32
	 	January 3, 2005        

  
 For value received,
the undersigned, Aegis Communications Group, Inc., a Delaware corporation (the “Company”), hereby PROMISES TO PAY to the order of Deutsche Bank AG London acting through DB Alternative Trading, Inc. (the “Investor”
and in its capacity as administrative agent for each of its assignees hereunder, the “Administrative Agent”), the principal sum of $1,863,471.32 together with interest in arrears from and including the date hereof on the unpaid
principal balance until such principal balance is paid in full. The Company agrees to make all payments under this Sixth Amended and Restated Secured Promissory Note to the order of the Investor, in lawful money of the United States of America and
in immediately available funds, to such account or place as the Investor may request in writing ten (10) Business Days (as defined herein) prior to any such payment. The Investor, together with its assignees hereunder are collectively referred to as
the “Noteholders”. Terms used and not defined in the text of this Sixth Amended and Restated Secured Promissory Note (this “Secured Promissory Note”) have the meaning specified in Annex II to this Secured Promissory
Note or in the Purchase Agreement referred to below. 
  
 This
Secured Promissory Note amends and restates in its entirety that certain Secured Promissory Note, dated November 5, 2003, made by the Company to the order of the Investor in the amount of $14,087,352.00, restated in that certain Amended and Restated
Secured Promissory Note, dated January 28, 2004, restated in that certain Second Amended and Restated Secured Promissory Note, dated March 30, 2004, restated in that certain Third Amended and Restated Secured Promissory Note, dated August 23, 2004,
restated in that certain Fourth Amended and Restated Secured Note, dated November 22, 2004, restated in that certain Fifth Amended and Restated Secured Promissory Note, dated December 15, 2004 (the “Original Note”) and shall be
deemed for purposes of the Loan Documents (defined herein) to be the same as the Original Note. 
  
 The Company agrees to pay interest on the unpaid principal amount of this Secured Promissory Note until such principal amount shall be paid in full,
compounded quarterly, at a rate per annum equal to 0.50% per annum above the rate of interest per annum (the “Eurodollar Rate”) 

 (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page) as
the London interbank offered rate for deposits in U.S. dollars at 11:00 A.M. (London time) two Business Days before the first day of each Interest Period (as defined below) for an amount substantially equal to such unpaid amount and for a period
equal to such Interest Period (provided that, if for any reason such rate is not available, the term “Eurodollar Rate” shall mean, for any Interest Period, the rate of interest per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the London interbank offered rate for deposits in U.S. dollars at approximately 11:00 A.M. (London time) two Business Days prior to the first day of each Interest Period for a term
comparable to such Interest Period; provided, however, if more than one rate is specified on Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of all such rates). Each interest period shall be a period
having a duration of three months (an “Interest Period”). The initial Interest Period shall begin on the date hereof and each subsequent Interest Period shall begin on the last day of the immediately preceding Interest Period.
Interest shall be payable in arrears at the end of each Interest Period as set forth in the relevant provision below and shall be calculated on the basis of actual number of days elapsed and a year of 360 days. Notwithstanding any other provision of
this Secured Promissory Note, the Investor does not intend to charge, and the Company shall not be required to pay, any interest or other fees or charges in excess of the maximum permitted by applicable law; any payments in excess of such maximum
shall be credited to reduce principal hereunder. Except as otherwise provided herein or in the Security Agreement (as defined below), all payments received by the Administrative Agent hereunder will be applied first to costs of collection, if any,
then to accrued but unpaid interest and the balance to principal (in each case, pro rata to each Noteholder according to the interests of each Noteholder in and to the principal outstanding at such time under this Secured Promissory Note).

  
 The Company shall pay interest on the amount of any principal,
interest or other amount payable hereunder that is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable on demand, at a rate per annum equal at all times to two percent (2%) per annum above the
rate per annum of interest set forth in the immediately preceding paragraph (the “Default Rate”). 
  
 Principal hereunder shall be payable in installments as follows: 
  

(a) In an initial installment of $231,897.80 (the “Initial Principal Payment”) payable from time to time on or before
June 3, 2005; and 
  
 (b) the balance of the
outstanding principal amount hereof shall be payable on April 26, 2007. 
  
 Each installment of principal shall be paid to the Administrative Agent for distribution to the Noteholders by 11:00 A.M. (New York City time) on the date due. Interest hereunder shall be payable to the Administrative Agent for distribution
to the Noteholders on the last day of each Interest Period in arrears commencing on April 3, 2005 (each such date being an “Interest Payment Date”) with a final payment of all unpaid interest on the date principal is paid in full
hereunder. The Company shall have the option to pay such interest in cash or to cause such interest to be capitalized on any such Interest Payment Date and added to the principal amount of this Secured Promissory Note, which additional amount shall
bear interest and otherwise be payable in accordance with the terms and conditions of this Secured Promissory Note. 
  
 The Administrative Agent shall have the right at any time to request that any or all capitalized interest added to the principal amount of this Secured
Promissory Note be evidenced by a separate promissory note or notes in substantially the form of this Secured Promissory Note. 
  

 2 

 If any day on which a payment is due pursuant to the terms of this Secured Promissory Note is not a
Business Day, such payment shall be due on the next Business Day following such date and interest shall accrue on the accrued and unpaid interest during such extension of time; provided, that any such interest accruing for such extension of
time shall be due and payable on the immediately succeeding Interest Payment Date. 
  
 This Secured Promissory Note may be prepaid at any time, without premium or penalty, in whole or in part, together with accrued interest to the date of such prepayment on the portion prepaid. All prepayments made
shall be recorded by the Administrative Agent and, prior to any transfer hereof, indorsed on the grid attached as Annex I hereto, which is part of this Secured Promissory Note; provided, that the failure of the Administrative Agent to make
any such recordation shall not affect the obligations of the Company under this Secured Promissory Note. 
  
 This Secured Promissory Note will be entitled to the benefits of and will be secured by the pledge, liens, security, title, rights and security interests
granted under (a) the General Security Agreement, dated as of January 26, 2004 (the “Security Agreement”), made by the Company and its Subsidiaries party thereto in favor of Wilmington Trust Company, as collateral trustee for the
Noteholders (together with its successors and assigns, the “Collateral Trustee”) pursuant to the Collateral Trustee Agreement, dated as of January 26, 2004 (the “Collateral Trustee Agreement”), among the Collateral
Trustee, the Company, the Guarantors and the Administrative Agents, (b) the Trademark Collateral Assignment and Security Agreement, dated as of January 26, 2004 (the “Trademark Security Agreement”), made by the Company and its
Subsidiaries party thereto in favor of the Collateral Trustee, (c) the Copyright Collateral Assignment and Security Agreement, dated as of January 26, 2004 (the “Copyright Security Agreement”), made by the Company and its
Subsidiaries party thereto in favor of the Collateral Trustee and (d) the Stock Pledge Agreement, dated as of January 26, 2004 (the “Pledge Agreement”), made by the Company and its Subsidiaries party thereto in favor of the
Collateral Trustee (the Security Agreement, together with each of the Trademark Security Agreement, the Copyright Security Agreement and the Pledge Agreement, are collectively referred to as the “Collateral Documents”). This Secured
Promissory Note is subject to the terms of the Intercreditor and Subordination Agreement, dated as of January 26, 2004 (the “Intercreditor Agreement”) among WFF, the Collateral Trustee and the Noteholders. The Intercreditor
Agreement, together with this Secured Promissory Note, each other Secured Promissory Note, the Collateral Documents, the Collateral Trustee Agreement and the Subsidiary Guaranty made by each of the Subsidiaries of the Company and dated as of
November 5, 2003, as amended by the Amendment No. 1 to Subsidiary Guaranty dated as of January 26, 2004 (the “Guaranty”), as each of the same may be amended, supplemented or renewed from time to time, are collectively referred to as
the “Loan Documents.” 
  
 So long as any
Obligation under this Secured Promissory Note or any other Loan Document shall remain unpaid, the Company will comply with the affirmative and negative covenants set forth in Annex II to this Secured Promissory Note in accordance with the terms of
those covenants. 
  
 Subject to the terms of the Intercreditor
Agreement, upon the occurrence and during the continuation of any Event of Default (as defined in Annex II hereto), (i) the Administrative Agent, at the direction of the Required DB Noteholders, may by notice to the Company, declare this Secured
Promissory Note, all interest thereon and all other amounts payable hereunder to be forthwith due and payable, whereupon this Secured Promissory Note, all such interest and all such other amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Company and (ii) the Administrative Agent may pursue all remedies available to it under the Loan Documents and applicable law against
the Company and the personal property that secures the Obligations, from time to time and in such order as the Administrative Agent shall determine. 
  

 3 

 The Company agrees that, upon the acceleration of this Secured Promissory Note following the occurrence
of an Event of Default that is not cured within the applicable cure period, the Company shall pay to the Administrative Agent, in addition to principal and accrued interest thereon, all out-of-pocket costs of collection of the principal and accrued
interest, including, but not limited to, all reasonable out-of-pocket attorneys’ fees, court costs, and other reasonable out-of-pocket costs and expenses of each Noteholder Party related to the enforcement of payment of this Secured Promissory
Note. Such amounts which are not paid within 10 days after Administrative Agent’s written demand therefor shall be added to the principal of this Secured Promissory Note and will bear interest at the Default Rate. 
  
 Each Noteholder Party hereby appoints and authorizes the Administrative Agent
and the Collateral Trustee (each, an “Agent”) to take such action as agent on its behalf and to exercise such powers and discretion under this Secured Promissory Note and the other Loan Documents as are delegated to such Agent by
the terms hereof and thereof, together with such powers and discretion as are reasonably incidental thereto. As to any matters not expressly provided for by the Loan Documents (including, without limitation, enforcement or collection of this Secured
Promissory Note), no Agent shall be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the
Required DB Noteholders, in the case of the Administrative Agent, and the Required Noteholders, in the case of the Collateral Trustee, and such instructions shall be binding upon all Noteholder Parties; provided, however, that no Agent
shall be required to take any action that exposes such Agent to personal liability or that is contrary to this Agreement or applicable law. 
  
 Neither any Agent nor any of their respective directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it
or them under or in connection with the Loan Documents, except for its or their own gross negligence or willful misconduct. Without limitation of the generality of the foregoing, each Agent: (a) may consult with legal counsel (including counsel for
any Loan Party), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (b) makes
no warranty or representation to any Noteholder Party and shall not be responsible to any Noteholder Party for any statements, warranties or representations (whether written or oral) made in or in connection with the Loan Documents; (c) shall not
have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of any Loan Document on the part of any Loan Party or to inspect the property (including the books and records) of any Loan
Party; (d) shall not be responsible to any Noteholder Party for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be
created under or in connection with, any Loan Document or any other instrument or document furnished pursuant thereto; and (e) shall incur no liability under or in respect of any Loan Document by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telegram, telecopy or telex) believed by it to be genuine and signed or sent by the proper party or parties. 
  
 All notices and other communications provided for under this Secured Promissory Note shall be in writing (including by facsimile transmission) and mailed,
faxed or delivered, in accordance with the terms of the Secured Promissory Note and Warrant Purchase Agreement, dated as of November 5, 2003, by and between the Company and the Noteholders (the “Purchase Agreement”), in the case of
the Company, to: 7880 Bent Branch Drive, Suite 150, Irving, Texas 75063 Attention: Chief Financial Officer, with copy to Chief Executive Officer at 7880 Bent Branch Drive, Suite 150, Irving, Texas 
  

 4 

 75063), and, in the case of the Investor or Administrative Agent, to: DB Advisors LLC, 280 Park Avenue, New York, New
York 10017, Attention: Roger Ehrenberg with a copy to: Shearman & Sterling LLP, 599 Lexington Avenue, New York, New York 10022-6069, Facsimile: (212) 848-7179, Attention: Stephen M. Besen, Esq. 
  
 No amendment, waiver, modification or supplement of any provision of this
Secured Promissory Note, nor consent to any departure by the Company therefrom, shall in any event be effective unless the same shall be in writing signed by the Company and accepted and agreed to by the Required Lenders and then such amendment,
waiver, modification, supplement or consent shall be effective only in the specific instance and for the specific purpose for which given. 
  
 This Secured Promissory Note is governed by and construed in accordance with, the laws of the State of New York. 
  
 This Secured Promissory Note may be assigned, in whole or in part, from time
to time, by the Investor without the prior written consent of the Company. 
  
 This Secured Promissory Note and the rights and obligations under this Secured Promissory Note are not assignable or delegable, directly or indirectly, in whole or in part, by the Company, without the prior written
consent of the Investor; provided, however, that the Company may transfer this Secured Promissory Note and the rights and obligations under this Secured Promissory Note to any third party that has acquired all or substantially all of the capital
stock or ownership interest in and to the Company (including by way of merger or consolidation) or to any third party that has acquired all or substantially all of the assets of the Company; provided that the Collateral (as defined in the Security
Agreement) is included in any such sale. This Secured Promissory Note shall be binding upon the Company, its permitted successors and its assigns, and, in addition, shall inure to the benefit of and be enforceable by each Noteholder and its
successors and assigns. Whenever possible this Secured Promissory Note and each provision hereof shall be interpreted in such manner as to be effective, valid and enforceable under applicable law. If and to the extent that any such provision of this
Secured Promissory Note shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provisions hereof, and any determination that the application of any provision
hereof to any person or under any circumstance is illegal and unenforceable shall not affect the legality, validity and enforceability of such provision as it may be applied to any other person or in any other circumstance. All rights and remedies
provided in this Secured Promissory Note, the Guarantee, the Security Agreement or any law shall be available to the Investor and shall be cumulative. 
  
 The Company hereby expressly waives presentment, demand, and protest, notice of demand, dishonor and nonpayment of this Secured Promissory Note, and all
other notices or demands of any kind in connection with the delivery, acceptance, performance, default or enforcement hereof, and hereby consents to any delays, extensions of time, renewals, waivers or modifications that may be granted or consented
to by the Noteholders with respect to the time of payment or any other provision hereof or of the Security Agreement. 
  
 No course of dealing between the Company and the Investor or any other Noteholder or Noteholder Party and no delay or failure in exercising any rights
hereunder in respect thereof shall operate as a waiver of any rights of any Noteholder Party. 
  
 This Secured Promissory Note, and the indebtedness of the Company to the Investor evidenced hereby, shall not be subject to any set-off, recoupment or counterclaim, each of which is hereby expressly waived by the
Company with respect to this Secured Promissory Note and such indebtedness. 
  

 5 

 The Company hereby irrevocably submits to the non-exclusive jurisdiction of any United States Federal or
New York State court sitting in New York City in any action or proceeding arising out of or relating to this Secured Promissory Note and hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in
any such court and irrevocably waives any objection it may now or hereafter have as to the venue of any such suit, action or proceeding brought in such a court or that such court is an inconvenient forum. Nothing herein shall limit the right of the
Investor or any other Noteholder Party to bring proceedings against the Company in the courts of any other jurisdiction. 
  

 6 

 THE COMPANY HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS SECURED PROMISSORY NOTE. 
  

			
	 COMPANY:
  
 AEGIS COMMUNICATIONS GROUP, INC.

		
	 By:
	 	 /s/ Richard N. Ferry

	 Name:
	 	 Richard N. Ferry

	 Title:
	 	 President and CEO

  

 7 

 Annex I  
  
 PREPAYMENTS 
  

							
	 Date

	  	 Amount Prepaid

	  	 Unpaid Balance

	  	 Notation Made By

  

 2 

 Annex II 
  
 Covenants, Events of Default and Related Definitions 
  
 1. Definitions and Interpretations 
  
 1.1 Definitions As used in this Annex II, the following terms shall have the following definitions: 
  
 “Account” means an account (as that term is defined in the
Code), and any and all supporting obligations in respect thereof. 
  
 “Account Debtor” means any Person who is obligated under, with respect to, or on account of, an Account, chattel paper, or a General Intangible. 
  
 “Advances” means the principal amounts outstanding and unpaid from time to time evidenced by the Secured
Promissory Note to which this Annex II is attached and any other secured promissory note having the same terms as this secured promissory note and issued simultaneously with the Secured Promissory Note to which this Annex II is attached. 

 
 “Affiliate” means, as applied to any Person, any other
Person who, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” means the possession, directly or indirectly
through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of Stock, by contract, or otherwise. 
  
 “ATC” means Advanced Telemarketing Corporation, a Nevada corporation. 
  
 “Bankruptcy Code” means title 11 of the United States Code,
as in effect from time to time. 
  
 “Board of
Directors” means the board of directors (or comparable managers) of the Company or any committee thereof duly authorized to act on behalf of the board of directors (or comparable managers). 
  
 “Books” means all of Company’s and its
Subsidiaries’ now owned or hereafter acquired books and records (including all of their Records indicating, summarizing, or evidencing their assets (including the Collateral) or liabilities, all of Company’s and its Subsidiaries’
Records relating to their business operations or financial condition, and all of their goods or General Intangibles related to such information). 
  
 “Business Day” means any day that is not a Saturday, Sunday, or other day on which banks are authorized or required to close in the state
of New York or for purposes of determining the interest rate hereunder, London. 
  
 “Capital Expenditures” means, with respect to any Person for any period, the sum of (a) the aggregate of all expenditures by such Person and its Subsidiaries during such period that are capital
expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed, and (b) to the extent not covered by clause (a), the aggregate of all expenditures by such Person and its Subsidiaries during such period to
acquire by purchase or otherwise the business or capitalized assets of, or the Capital Stock of, any other Person. 
  

 3 

 “Capital Lease” means a lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP. 
  
 “Capitalized Lease
Obligation” means that portion of the obligations under a Capital Lease that is required to be capitalized in accordance with GAAP. 
  
 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or issued by any
agency thereof and backed by the full faith and credit of the United States, in each case maturing within 1 year from the date of acquisition thereof, (b) marketable direct obligations issued by any state of the United States or any political
subdivision of any such state or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s
Rating Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more than 270 days from the date of creation thereof and, at the time of acquisition, having a rating of at least
A-1 from S&P or at least P-1 from Moody’s, (d) certificates of deposit or bankers’ acceptances maturing within 1 year from the date of acquisition thereof issued by any bank organized under the laws of the United States or any state
thereof having at the date of acquisition thereof combined capital and surplus of not less than $250,000,000, (e) demand Deposit Accounts maintained with any bank organized under the laws of the United States or any state thereof so long as the
amount maintained with any individual bank is less than or equal to $100,000 and is insured by the Federal Deposit Insurance Corporation, and (f) Investments in money market funds substantially all of whose assets are invested in the types of assets
described in clauses (a) through (e) above. 
  
 “Change of
Control” means that (a) any “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act), other than Permitted Holders, becomes the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 25%, or more, of the Stock of the Company having the right to vote for the election of members of the Board of Directors, or (b) the Investors cease to own, directly or indirectly, and control Stock and
Warrants (as defined in the Purchase Agreement) of the Company representing (if such warrants were exercised) in the aggregate 65% of the outstanding Stock of the Company, or (c) a majority of the members of the Board of Directors do not constitute
Continuing Directors, or (d) the Company or its Subsidiaries cease to own, directly or indirectly, and control 98.76 % of the outstanding Stock of ATC and the Company or its Subsidiaries cease to own, directly or indirectly, and control 100% of the
outstanding Stock of each of their Subsidiaries (other than ATC) extant as of the Closing Date. 
  
 “Closing Date” means the date of this Secured Promissory Note. 
  
 “Code” means the New York Uniform Commercial Code, as in effect from time to time. 
  
 “Collateral” means all assets and interests in assets and
proceeds thereof now owned or hereafter acquired by the Company or its Subsidiaries in or upon which a Lien is granted under any of the Loan Documents. 
  
 “Collateral Access Agreement” means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman,
processor, consignee, or other Person in possession of, having a Lien upon, or having rights or interests in Company’s or its Subsidiaries’ Books or Equipment, in each case, in form and substance satisfactory to Collateral Trustee.

  

 4 

 “Compliance Certificate” means a certificate in a form to be agreed by the Company and
the Administrative Agent delivered by the chief financial officer of the Company to Administrative Agent. 
  
 “Continuing Director” means (a) any member of the Board of Directors who was a director (or comparable manager) of the Company on the
date of execution of the Secured Promissory Notes, and (b) any individual who becomes a member of the Board of Directors after the date of execution of the Secured Promissory Notes if such individual was appointed or nominated for election to the
Board of Directors by a majority of the Continuing Directors, but excluding any such individual originally proposed for election in opposition to the Board of Directors in office on the date of execution of the Secured Promissory Notes in an actual
or threatened election contest relating to the election of the directors (or comparable managers) of the Company and whose initial assumption of office resulted from such contest or the settlement thereof. 
  
 “Control Agreement” means a control agreement, in form and
substance satisfactory to Collateral Trustee, executed and delivered by the Company or one of its Subsidiaries, Collateral Trustee and, so long as the WFF Facility remains outstanding, WFF as Collateral Trustee under the WFF Facility (in which case
such Control Agreement shall provide that the Collateral Trustee shall replace WFF as secured party thereunder upon termination and payment in full of the WFF Facility), and the applicable securities intermediary (with respect to a Securities
Account) or a bank (with respect to a Deposit Account). 
  
 “Default” means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an Event of Default. 
  
 “Deposit Account” means any deposit account (as that term is defined in the Code) other than the payroll
account of the Company or any of its Subsidiaries or any account maintained by the Company or any of its Subsidiaries out of which payroll or related taxes (but not other operating expenses) are payable. 
  
 “EBITDA” means, with respect to any fiscal period, the
Company’s and its Subsidiaries’ consolidated net earnings (or loss), minus extraordinary gains and interest income, plus interest expense, income taxes, depreciation and amortization and extraordinary non-cash losses for such period, as
determined in accordance with GAAP. 
  
 “Environmental
Actions” means any complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter, or other communication from any Governmental Authority, or any third party
involving violations of Environmental Laws or releases of Hazardous Materials from (a) any assets, properties, or businesses of the Company or any of its Subsidiaries, or any of their predecessors in interest, (b) from adjoining properties or
businesses, or (c) from or onto any facilities which received Hazardous Materials generated by the Company or any of its Subsidiaries, or any of their predecessors in interest. 
  
 “Environmental Law” means any applicable federal, state, provincial, foreign or local statute, law, rule,
regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written policy or rule of common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation thereof, including
any judicial or administrative order, consent decree or judgment, to the extent binding on the Company or any of its Subsidiaries, relating to the environment, employee health and safety (to the extent it regulates 
  

 5 

 occupational exposure to Hazardous Materials), or Hazardous Materials, including CERCLA; RCRA; the Federal Water
Pollution Control Act, 33 USC § 1251 et seq; the Toxic Substances Control Act, 15 USC § 2601 et seq; the Clean Air Act, 42 USC § 7401 et seq.; the Safe Drinking Water Act, 42 USC § 3803
et seq.; the Oil Pollution Act of 1990, 33 USC § 2701 et seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42 USC § 11001 et seq.; the Hazardous Material Transportation Act,
49 USC § 1801 et seq.; and the Occupational Safety and Health Act, 29 USC §651 et seq. (to the extent it regulates occupational exposure to Hazardous Materials); any state and local or foreign counterparts or
equivalents, in each case as amended from time to time. 
  
 “Environmental Liabilities and Costs” means all liabilities, monetary obligations, Remedial Actions, losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable
fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any claim or demand by any Governmental Authority or any
third party, and which relate to any Environmental Action. 
  
 “Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities and Costs. 
  
 “Equipment” means equipment (as that term is defined in the Code), and includes machinery, machine tools, motors, furniture, furnishings,
fixtures, vehicles (including motor vehicles), computer hardware, tools, parts, and goods (other than consumer goods, farm products, or Inventory), wherever located, including all attachments, accessories, accessions, replacements, substitutions,
additions, and improvements to any of the foregoing. 
  
 “Event of Default” has the meaning set forth in Section 4 of this Annex II. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to time. 
  
 “Excluded Subsidiary” means any Subsidiary of the Company or
a Guarantor that (i) has an aggregate book value, for all of its assets, of less than $25,000, (ii) owns no registered intellectual property, (iii) has annual revenues of less than $25,000, and (iv) has been designated an “Excluded
Subsidiary” by the Company with the consent of the Administrative Agent in its Permitted Discretion. The Company may withdraw such designation at any time in its discretion. As of the Closing Date, EBA Direct, Inc., a Canadian corporation and
wholly owned Subsidiary of IQI, Inc., is the sole Excluded Subsidiary. 
  
 “Financed Capital Expenditures” means Capital Expenditures permitted under Section 3.16(b)(ii) without the incorporation by reference of Section 3.16(b)(i) set forth therein. 
  
 “FEIN” means Federal Employer Identification Number.

  
 “Funded Capital Expenditures” means Capital
Expenditures permitted under Section 3.16(b)(i) without the incorporation by reference of Section 3.16(b)(ii) set forth therein. 
  
 “GAAP” means generally accepted accounting principles as in effect from time to time in the United States, consistently applied.

  

 6 

 “General Intangibles” means general intangibles (as that term is defined in the Code),
including payment intangibles, contract rights, rights to payment, rights arising under common law, statutes, or regulations, choses or things in action, goodwill, patents, trade names, trade secrets, trademarks, servicemarks, copyrights,
blueprints, drawings, purchase orders, customer lists, monies due or recoverable from pension funds, route lists, rights to payment and other rights under any royalty or licensing agreements, infringement claims, computer programs, information
contained on computer disks or tapes, software, literature, reports, catalogs, insurance premium rebates, tax refunds, and tax refund claims, and any and all supporting obligations in respect thereof, and any other personal property other than
Accounts, Deposit Accounts, goods, Investment Property, and Negotiable Collateral. 
  
 “Governmental Authority” means any federal, state, local, or other governmental or administrative body, instrumentality, department, or agency or any court, tribunal, administrative hearing body,
arbitration panel, commission, or other similar dispute-resolving panel or body. 
  
 “Guarantor” means each Material Subsidiary of the Company. 
  
 “Hazardous Materials” means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws or
regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define, list, or classify substances by reason of deleterious
properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids,
produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any radioactive materials, and (d) asbestos in any form
or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million. 
  
 “Hedge Agreement” means any and all agreements, or documents now existing or hereafter entered into by Company or its Subsidiaries that
provide for an interest rate, credit, commodity or equity swap, cap, floor, collar, forward foreign exchange transaction, currency swap, cross currency rate swap, currency option, or any combination of, or option with respect to, these or similar
transactions, for the purpose of hedging Company’s or its Subsidiaries’ exposure to fluctuations in interest or exchange rates, loan, credit exchange, security or currency valuations or commodity prices. 
  
 “Initial Noteholders” means Deutsche Bank AG London acting
through DB Advisors, LLC and Essar Global Limited. 
  
 “Indebtedness” means (a) all obligations for borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of
credit, bankers acceptances, interest rate swaps, or other financial products, (c) all obligations as a lessee under Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of a Person or its Subsidiaries,
irrespective of whether such obligation or liability is assumed, (e) all obligations to pay the deferred purchase price of assets (other than trade payables incurred in the ordinary course of business and repayable in accordance with customary trade
practices), (f) all obligations owing under Hedge Agreements, and (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other
Person that constitutes Indebtedness under any of clauses (a) through (f) above. 
  

 7 

 “Insolvency Proceeding” means any proceeding commenced by or against any Person under
any provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking
reorganization, arrangement, or other similar relief. 
  
 “Interest Expense” means, for any period, the aggregate of the interest expense of the Company and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 
  
 “Inventory” means inventory (as that term is defined in the
Code). 
  
 “Investment” means, with respect to
any Person, any investment by such Person in any other Person (including Affiliates) in the form of loans, guarantees, advances, or capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such
Person made in the ordinary course of business, and (b) bona fide Accounts arising in the ordinary course of business consistent with past practice), purchases or other acquisitions of Indebtedness, Stock, or all or substantially all of the
assets of such other Person (or of any division or business line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. 
  
 “Investment Property” means investment property (as that
term is defined in the Code), and any and all supporting obligations in respect thereof. 
  
 “Lien” means any interest in an asset securing an obligation owed to, or a claim by, any Person other than the owner of the asset, irrespective of whether (a) such interest is based on the common law,
statute, or contract, (b) such interest is recorded or perfected, and (c) such interest is contingent upon the occurrence of some future event or events or the existence of some future circumstance or circumstances. Without limiting the generality
of the foregoing, the term “Lien” includes the lien or security interest arising from a mortgage, deed of trust, encumbrance, pledge, hypothecation, assignment, deposit arrangement, security agreement, conditional sale or trust receipt, or
from a lease, consignment, or bailment for security purposes and also includes reservations, exceptions, encroachments, easements, rights-of-way, covenants, conditions, restrictions, leases, and other title exceptions and encumbrances affecting Real
Property. 
  
 “Material Adverse Change” means (a)
a material adverse change in the business, prospects, operations, results of operations, assets, liabilities or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole, (b) a material impairment of the Company’s
or a Subsidiary of the Company’s ability to perform its obligations under the Loan Documents to which it is a party or of the Noteholder Parties’ ability to enforce the Obligations or realize upon the Collateral, or (c) a material
impairment of the enforceability or priority of the Collateral Trustee’s Liens with respect to the Collateral as a result of an action or failure to act on the part of the Company or a Subsidiary of the Company. 
  
 “Material Subsidiary” means any Subsidiary of the Company or
a Guarantor that is not an Excluded Subsidiary. 
  
 “Negotiable Collateral” means letters of credit, letter of credit rights, instruments, promissory notes, drafts, documents, and chattel paper (including electronic chattel paper and tangible chattel paper), and any and all
supporting obligations in respect thereof. 
  

 8 

 “Noteholder” or “Noteholders” means the Investor and each Person that
becomes a holder of the Secured Promissory Note to which this Annex II is attached or to the owner of an undivided interest in the Secured Promissory Note to which this Annex II is attached pursuant to the terms hereof for so long as the Investor or
such Person, as the case may be, shall be a holder hereof. 
  
 “Noteholder Party” or “Noteholder Parties” means any or all of the Noteholders and Agents, as the case may be. 
  
 “Obligations” means all loans, Advances, debts, principal, interest (including any interest that, but for the commencement of an
Insolvency Proceeding, would have accrued), premiums, liabilities, obligations (including indemnification obligations), fees, charges, costs, expenses of any of the Noteholders or the Agents payable by the Company to any Noteholder Party under the
Loan Documents and (including any fees or expenses that, but for the commencement of an Insolvency Proceeding, would have accrued), guaranties, covenants, and duties of any kind and description owing by the Company to any of the Noteholder Parties
pursuant to or evidenced by the Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid
when due and all costs and expenses of the Noteholder Parties payable by the Company under the Loan Documents, by law, or otherwise. Any reference herein to the Obligations shall include all extensions, modifications, renewals, or alterations
thereof, both prior and subsequent to any Insolvency Proceeding. 
  
 “Permitted Discretion” means a determination made in good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment. 
  
 “Permitted Dispositions” means (a) sales or other
dispositions of Equipment that is substantially worn, damaged, or obsolete in the ordinary course of business, (b) sales of Inventory to buyers in the ordinary course of business, (c) the use or transfer of money or Cash Equivalents in a manner that
is not prohibited by the terms of this Agreement or the other Loan Documents, and (d) the licensing, on a non-exclusive basis, of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business and (d) the
sale of assets having an aggregate book value on the Books of the “Borrowers” (as such term is defined in the WWF Facility) not exceeding $100,000 in any twelve-month period. 
  
 “Permitted Holders” means the Initial Noteholders and the Prior Stockholders. 
  
 “Permitted Investments” means (a) Investments in cash and
Cash Equivalents, (b) Investments in negotiable instruments for collection, (c) advances made in connection with purchases of goods or services in the ordinary course of business, (d) Investments received in settlement of amounts due to the Company
or any Material Subsidiary of the Company effected in the ordinary course of business or owing to the Company or any Material Subsidiary of the Company as a result of Insolvency Proceedings involving an Account Debtor or upon the foreclosure or
enforcement of any Lien in favor of the Company or any Material Subsidiary of the Company, and (e) Investments in de minimis amounts in Excluded Subsidiaries that are necessary to maintain the corporate existence of such Excluded Subsidiaries
under applicable law. 
  
 “Permitted Liens” means
(a) Liens held by Collateral Trustee, (b) Liens for unpaid taxes that either (i) are not yet delinquent, or (ii) do not constitute an Event of Default hereunder and are the subject of Permitted Protests, (c) Liens set forth on Schedule 3.2 to
this Annex II, (d) the interests of lessors under operating leases, (e) purchase money Liens or the interests of lessors 
  

 9 

 under Capital Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness and so long
as such Lien attaches only to the asset purchased or acquired and the proceeds thereof, (f) Liens arising by operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen, laborers, or suppliers, incurred in the ordinary
course of the Company and its Subsidiaries’ business and not in connection with the borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted Protests, (g) Liens arising from deposits
made in connection with obtaining worker’s compensation or other unemployment insurance, (h) Liens or deposits to secure performance of bids, tenders, or leases incurred in the ordinary course of business and not in connection with the
borrowing of money, (i) Liens granted as security for surety or appeal bonds in connection with obtaining such bonds in the ordinary course of business, (j) Liens resulting from any judgment or award that is not an Event of Default hereunder, (k)
with respect to any Real Property, easements, rights of way, and zoning restrictions that do not materially interfere with or impair the use or operation thereof and (l) any and all Liens granted in, created by or arising out of any WFF Loan
Documents, which Liens may be senior and prior to any Lien in favor of the Collateral Trustee or Noteholders to secure the repayment and performance of the Obligations. 
  
 “Permitted Protest” means the right of Company or any of its Subsidiaries to protest any Lien (other than
any Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien), or rental payment, provided that (a) a reserve with respect to such obligation is established on the Books in
such amount as is required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by Company or any of its Subsidiaries, as applicable, in good faith, and (c) while any such protest is pending, there will be no impairment
of the enforceability, validity, or priority of any of the Collateral Trustee’s Liens. 
  
 “Permitted Purchase Money Indebtedness” means, as of any date of determination, Purchase Money Indebtedness incurred after the date of execution of the Secured Promissory Notes in an aggregate amount
outstanding at any one time not in excess of $10,000,000. 
  
 “Person” means natural persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships, statutory trusts, joint ventures, trusts, land trusts, business trusts,
statutory trusts or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof. 
  
 “Prior Stockholders” means Questor Partners Fund II, L.P.; Questor Side-by-Side Partners II, L.P.; Questor Side-by-Side Partners II
3(c)(1), L.P.; TC Co-Investors, LLC; and Thayer Equity Investors III, L.P. 
  
 “Projections” means the Company’s forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash flow statements, all prepared on a consistent basis with the Company’s
historical financial statements, together with appropriate supporting details and a statement of underlying assumptions. 
  
 “Purchase Money Indebtedness” means Indebtedness (other than the Obligations, but including Capitalized Lease Obligations), incurred at
the time of, or within 20 days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof. 
  
 “Real Property” means any estates or interests in real property now owned or hereafter acquired by the Company or a Subsidiary of the
Company and the improvements thereto. 
  

 10 

 “Record” means information that is inscribed on a tangible medium or which is stored in
an electronic or other medium and is retrievable in perceivable form. 
  
 “Remedial Action” means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or
minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) perform any pre-remedial studies, investigations, or
post-remedial operation and maintenance activities, or (d) conduct any other actions authorized by 42 USC § 9601. 
  
 “Required Essar Noteholders” means, at any time, Noteholders owed or holding at least a majority in interest of the aggregate principal
amount of the Advances outstanding at such time under this Secured Promissory Note. 
  
 “Required Noteholders” means the Noteholders holding at least a majority in interest of the aggregate principal amount of the Advances (as defined in each Secured Promissory Note) outstanding at such
time under each of the Secured Promissory Notes. 
  
 “SEC” means the United States Securities and Exchange Commission and any successor thereto. 
  
 “Secured Promissory Note” means this Secured Promissory Note and each other secured promissory note issued by the Company as of the date
hereof. 
  
 “Securities Account” means a
“securities account” as that term is defined in the Code. 
  
 “Solvent” means, with respect to any Person on a particular date, that, at fair valuations, the sum of such Person’s assets is greater than all of such Person’s debts. 
  
 “Stock” means all shares, options, warrants, interests,
participations, or other equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the
General Rules and Regulations promulgated by the SEC under the Exchange Act). 
  
 “Subsidiary” of a Person means a corporation, partnership, limited liability company, or other entity in which that Person directly or indirectly owns or controls the shares of Stock having ordinary
voting power to elect a majority of the board of directors (or appoint other comparable managers) of such corporation, partnership, limited liability company, or other entity. 
  
 “Surviving Preferred Shares” means, collectively, the Surviving Series B Shares and the Surviving Series F
Shares. 
  
 “Surviving Series B Shares” means
29,778 shares of the Series B Preferred Stock, par value $.01 per share, of Parent. 
  
 “Surviving Series F Shares” means 23,875 shares of the Series F Preferred Stock, par value $.01 per share, of Parent. 
  

 11 

 “United States” means the United States of America. 
  
 “WFF” means Wells Fargo Foothill. 
  
 “WFF Facility” means the Loan and Security Agreement, dated
as of January 26, 2004, by and among the Company, each of its subsidiaries signatories thereto, each of the lenders signatories thereto and WFF as the arranger and administrative agent thereunder. 
  
 “WFF Loan Documents” means the WFF Facility and each other
“Loan Document” as defined therein. 
  
 1.2
Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. When used herein, the term “financial statements” shall include the notes and schedules thereto. Whenever the term
“the Company and its Subsidiaries” or the term “Company” is used in respect of a financial covenant or a related definition, it shall be understood to mean the Company and its Subsidiaries on a consolidated basis unless the
context clearly requires otherwise. 
  
 1.3 Code.
Any terms used in this Annex II that are defined in the Code shall be construed and defined as set forth in the Code unless otherwise defined herein. 
  
 2. Affirmative Covenants 
  
 The Company covenants and agrees that, until the payment in full of the Obligations, the Company and its Subsidiaries shall and shall cause each of their
respective Subsidiaries to do all of the following: 
  
 2.1
Accounting System. Maintain a system of accounting that enables the Company and its Subsidiaries to produce financial statements in accordance with GAAP and maintain records pertaining to the Collateral that contain information as from time
to time reasonably may be requested by Collateral Trustee. 
  
 2.2 Financial Statements, Reports, Certificates. Deliver to Administrative Agent, with copies to each Noteholder: 
  
 (a) as soon as available, but in any event within 30 days (45 days in the case of a month that is the end of one of the Company’s fiscal quarters)
after the end of each month during each of the Company’s fiscal years, 
  
 (i) a company prepared consolidated balance sheet, income statement, and statement of cash flow covering the Company’s and its Subsidiaries’ operations during such period, 
  
 (ii) a certificate signed by the chief financial officer of
the Company to the effect that: 
  
 A. the
financial statements delivered hereunder have been prepared in accordance with GAAP (except for the lack of footnotes and being subject to year-end audit adjustments) and fairly present in all material respects the financial condition of the Company
and its Subsidiaries, 
  

 12 

 B. there does not exist any condition or event that constitutes a Default or Event of
Default (or, to the extent of any non-compliance, describing such non-compliance as to which he or she may have knowledge and what action the Company and its Subsidiaries have taken, are taking, or propose to take with respect thereto), and

  
 (iii) for each month, quarter or year that is
a month, quarter or year as to which a financial covenant in Section 3.17 is to be tested, a Compliance Certificate demonstrating, in reasonable detail, compliance at the end of such period with the applicable financial covenants contained in
Section 3.17, 
  
 (b) as soon as available, but in any
event within 90 days after the end of each of the Company’s fiscal years, 
  
 (i) financial statements of the Company and its Subsidiaries for each such fiscal year, audited by the Company’s independent
certified public accountants as of the original issuance date of the Secured Promissory Notes or such other independent certified public accountants reasonably acceptable to Administrative Agent and certified, without any qualifications, by such
accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, and statement of cash flow and, if prepared, such accountants’ letter to management), and 
  
 (ii) a certificate of such accountants addressed to
Administrative Agent and the Lenders stating that such accountants do not have knowledge of the existence of any Default or Event of Default under Section 3.17, 
  
 (c) as soon as available, but in any event within 30 days prior to the start of each of the Company’s fiscal years,
copies of the Company’s Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Administrative Agent, in its sole discretion, for the forthcoming three years, year by year, and for the forthcoming
fiscal year, month by month, certified by the chief financial officer of the Company as being such officer’s good faith best estimate of the financial performance of the Company and its Subsidiaries during the period covered thereby,

  
 (d) if and when filed by the Company with the SEC,

  
 (i) the Company’s quarterly reports on
Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K, 
  
 (ii) any other filings made by the Company with the SEC, 
  
 (iii) copies of the Company and its Subsidiaries’ federal income tax returns, and any amendments thereto, filed with the Internal
Revenue Service, and 
  
 (iv) any other
information that is provided by the Company to its shareholders generally, 
  
 (e) if and when filed by the Company or any Subsidiary of the Company and as requested by Administrative Agent, satisfactory evidence of payment of applicable excise taxes in each jurisdiction in which (i) the Company
or any Subsidiary of the Company conducts 
  

 13 

 business or is required to pay any such excise tax, (ii) where the Company’s or any Subsidiary of the Company’s
failure to pay any such applicable excise tax would result in a Lien on the properties or assets of the Company or such Subsidiary, or (iii) where the Company’s or any Subsidiary of the Company’s failure to pay any such applicable excise
tax reasonably could be expected to result in a Material Adverse Change, 
  
 (f) as soon as the Company has knowledge of any event or condition that constitutes a Default or an Event of Default, notice thereof and a statement of the curative action that the Company and its Subsidiaries propose
to take with respect thereto, 
  
 (g) promptly after the
commencement thereof, but in any event within five days after the service of process with respect thereto on the Company or any Subsidiary of the Company, notice of all actions, suits, or proceedings brought by or against the Company or any
Subsidiary of the Company before any Governmental Authority which, if determined adversely to such Borrower or such Subsidiary, reasonably could be expected to result in a Material Adverse Change, and 
  
 (h) upon the request of Administrative Agent, any other report reasonably
requested relating to the financial condition of the Company or its Subsidiaries. 
  
 In addition to the financial statements referred to above, the Company and its Subsidiaries agree that no Subsidiary of the Company will have a fiscal year different from that of the Company. the Company and its
Subsidiaries agree to cooperate with Administrative Agent to allow Administrative Agent to consult with their independent certified public accountants if Administrative Agent reasonably requests the right to do so and that, in such connection, their
independent certified public accountants are authorized to communicate with Administrative Agent and to release to Administrative Agent whatever financial information concerning the Company and its Subsidiaries or their Subsidiaries that
Administrative Agent reasonably may request. 
  
 2.3
Returns. Cause returns and allowances as between the Company and its Subsidiaries and their Subsidiaries and their Account Debtors, to be on the same basis and in accordance with the usual customary practices of the Company and its
Subsidiaries and their Subsidiaries, as they exist at the time of the execution and delivery of this Agreement. 
  
 2.4 Maintenance of Properties. Maintain and preserve all of their properties which are necessary or useful in the proper conduct to
their business and not obsolete in good working order and condition, ordinary wear and tear excepted, and comply at all times with the provisions of all leases to which it is a party as lessee, so as to prevent any loss or forfeiture thereof or
thereunder. 
  
 2.5 Taxes. Cause all
assessments and taxes, whether real, personal, or otherwise, due or payable by, or imposed, levied, or assessed against the Company and its Subsidiaries, their Subsidiaries, or any of their respective assets to be paid in full, before delinquency or
before the expiration of any extension period, except to the extent that the validity of such assessment or tax shall be the subject of a Permitted Protest. The Company and its Subsidiaries will and will cause their Subsidiaries to make timely
payment or deposit of all tax payments and withholding taxes required of them by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish
Administrative Agent with proof satisfactory to Administrative Agent indicating that the Company or the Subsidiary of the Company, as the case may be, has made such payments or deposits. 
  

 14 

 2.6 Insurance. (a) At the Company and its Subsidiaries’ expense, maintain insurance
respecting the Company’s and its Subsidiaries’ assets wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other Persons engaged in the same or similar
businesses. The Company and its Subsidiaries also shall maintain business interruption, public liability, and product liability insurance. All such policies of insurance shall be in such amounts and with such insurance companies as are reasonably
satisfactory to Collateral Trustee. The Company and its Subsidiaries shall deliver copies of all such policies to Collateral Trustee with a satisfactory lender’s loss payable endorsement naming Collateral Trustee as sole loss payee or
additional insured, as appropriate, with respect to any losses of the Collateral. Each policy of insurance or endorsement shall contain a clause requiring the insurer to give not less than 30 days prior written notice to Collateral Trustee in the
event of cancellation of the policy for any reason whatsoever. 
  
 (b) The Company shall give Collateral Trustee prompt notice of any loss covered by such insurance. Collateral Trustee shall have the exclusive right to adjust any losses claimed under any such insurance policies with respect to Collateral
in excess of $50,000 (or in any amount after the occurrence and during the continuation of an Event of Default), without any liability to the Company and its Subsidiaries whatsoever in respect of such adjustments, except to the extent the Company or
any of its Subsidiaries suffers any loss or damage as a direct result of the gross negligence or willful malfeasance of the Collateral Trustee. Any monies received as payment for any loss of any of the Collateral under any insurance policy mentioned
above (other than liability insurance policies) or as payment of any award or compensation for condemnation or taking by eminent domain of any of the Collateral, shall be paid over to Collateral Trustee to be applied at the option of the Required
Noteholders either to the prepayment of the Obligations under each of the Secured Promissory Notes (pro rata according to the interests of each Noteholder in and to the principal outstanding at such time under the Secured Promissory Notes) or shall
be disbursed to the Company under staged payment terms reasonably satisfactory to the Required Noteholders for application to the cost of repairs, replacements, or restorations. Any such repairs, replacements, or restorations shall be effected with
reasonable promptness and shall be of a value at least equal to the value of the items or property destroyed prior to such damage or destruction. 
  
 (c) The Company and its Subsidiaries shall not, and shall not suffer or permit their Subsidiaries to, take out separate insurance concurrent in form or
contributing in the event of loss with that required to be maintained under this Section 2.7, unless Collateral Trustee is included thereon as named insured with the loss payable to Collateral Trustee under a lender’s loss payable
endorsement or its equivalent. The Company immediately shall notify Collateral Trustee whenever such separate insurance is taken out, specifying the insurer thereunder and full particulars as to the policies evidencing the same, and copies of such
policies promptly shall be provided to Collateral Trustee. 
  
 2.7 Location of Inventory and Equipment. Keep the Company and its Subsidiaries’ and their Subsidiaries’ Equipment only at the locations identified on Schedule 2.7 to this Annex II and their chief
executive offices only at the locations identified on said Schedule 2.7; provided, however, that Company may amend Schedule 2.7 so long as such amendment occurs by written notice to Collateral Trustee not less than 30 days prior
to the date on which such Equipment is moved to such new location or such chief executive office is relocated, so long as such new location is within the continental United States, and so long as, at the time of such written notification, the
Company or its Subsidiary provides Collateral Trustee a Collateral Access Agreement with respect thereto. 
  

 15 

 2.8 Compliance with Laws. Comply with the requirements of all applicable laws,
rules, regulations, and orders of any Governmental Authority, including the Fair Labor Standards Act and the Americans With Disabilities Act, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Change. 
  
 2.9 Leases. Pay when due all rents and other amounts payable under any leases to which the Company or any Subsidiary of the Company is a party or by which the Company’s or any Subsidiary of
the Company’s properties and assets are bound, unless such payments are the subject of a Permitted Protest. 
  
 2.10. Existence. Except as permitted under the WFF Facility, at all times preserve and keep in full force and effect the
Company’s and each Subsidiary of the Company’s valid existence and good standing and any rights and franchises material to their businesses. 
  
 2.11 Environmental. (a) Keep any property either owned or operated by the Company or any Subsidiary of the Company free of any
Environmental Liens or post bonds or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens, (b) comply, in all material respects, with Environmental Laws and provide to Administrative
Agent documentation of such compliance which Administrative Agent reasonably requests, (c) promptly notify Administrative Agent of any release of a Hazardous Material of any reportable quantity from or onto property owned or operated by the Company
or any Subsidiary of the Company and take any Remedial Actions required to abate said release or otherwise to come into compliance with applicable Environmental Law, and (d) promptly, but in any event within five days of its receipt thereof, provide
Administrative Agent with written notice of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of the Company or any Subsidiary of the Company, (ii) commencement of any
Environmental Action or notice that an Environmental Action will be filed against the Company or any Subsidiary of the Company, and (iii) notice of a violation, citation, or other administrative order which reasonably could be expected to result in
a Material Adverse Change. 
  
 2.12 Disclosure
Updates. Promptly and in no event later than five Business Days after obtaining knowledge thereof, notify Administrative Agent if any written information, exhibit, or report furnished to the Noteholders contained any untrue statement
of a material fact or omitted to state any material fact necessary to make the statements contained therein not misleading in light of the circumstances in which made. The foregoing to the contrary notwithstanding, any notification pursuant to the
foregoing provision will not cure or remedy the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the affect of amending or modifying this Agreement or any of the Schedules
hereto. 
  
 2.13 Formation of Subsidiaries.
At the time that the Company or any Subsidiary of the Company forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Closing Date, the Company or such existing Subsidiary shall, subject to the terms of the
Intercreditor Agreement, (a) if such new Subsidiary is a Material Subsidiary, cause such new Subsidiary to provide to Administrative Agent a Guaranty Supplement (as defined in the Guaranty) and joinder to the Security Agreement, together with such
other security documents as well as appropriate UCC-1 financing statements, all in form and substance satisfactory to Collateral Trustee (including being sufficient to grant Collateral Trustee a first priority Lien (subject to Permitted Liens) in
and to the assets of such newly formed or acquired Subsidiary), (b) provide to Collateral Trustee a pledge agreement and appropriate certificates and powers or UCC-1 financing statements, hypothecating all of the direct or beneficial ownership
interest in such new Subsidiary, in form and 
  

 16 

 substance satisfactory to Collateral Trustee, and (c) provide to Collateral Trustee all other documentation, including
one or more opinions of counsel satisfactory to Collateral Trustee, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above (including policies of title insurance or other
documentation with respect to all property subject to a Mortgage). Any document, agreement, or instrument executed or issued pursuant to this Section 2.13 shall be a Loan Document. 
  
 Notwithstanding anything to the contrary in this Section 2 of this Annex II, in no event shall the Company or any Subsidiary
of the Company be required to make any disclosure of information or provide any information, including any financial statements, to the Administrative Agent or any Noteholder if, pursuant to Regulation FD promulgated under the Securities Act of
1933, as amended, the Company would be required to make any disclosure of that information in a circumstance in which, or at a time at which, the Company reasonably determines such disclosure would be adverse to the best interest of the Company and
its Subsidiaries or the best interest of its stockholders or if the disclosure of that information would include the disclosure of non-GAAP financial measures as contemplated by Regulation G of the SEC. 
  
 2.14 Conversion of Excluded Subsidiaries. At the time
that any Excluded Subsidiary becomes a Material Subsidiary, the Company shall, subject to the terms of the Intercreditor Agreement, (a) cause such Subsidiary to provide to Collateral Trustee a Guaranty Supplement and joinder to the Security
Agreement, together with such other security documents (including Mortgages with respect to any Real Property of such Subsidiary), as well as appropriate UCC-1 financing statements (and with respect to all property subject to a Mortgage, fixture
filings), all in form and substance satisfactory to Collateral Trustee (including being sufficient to grant Collateral Trustee a second priority Lien (subject to Permitted Liens) in and to the assets of such Subsidiary), and (b) provide to
Collateral Trustee all other documentation, including one or more opinions of counsel satisfactory to Collateral Trustee, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to
above (including policies of title insurance or other documentation with respect to all property subject to a Mortgage). Any document, agreement, or instrument executed or issued pursuant to this Section 2.14 shall be a Loan Document. 
  
 2.15 Surviving Preferred Shares. Cause the Surviving
Series F Shares to be either converted to common Stock or cancelled as soon as practicable after the Closing Date but in any event not later than the later to occur of (a) March 31, 2004 and (b) the date occurring thirty (30) days after the SEC
approves the Company’s registration statement or other filings in respect of such conversion or cancellation. 
  
 3. Negative Covenants. 
  
 The Company covenants and agrees that, until the payment in full of the Obligations, but subject to the terms of the Intercreditor Agreement and to the
obligation and rights of the Company to perform its obligations and covenants and discharge its obligations under the WFF Loan Documents, the Company and its Subsidiaries will not and will not permit any of their respective Material Subsidiaries to
do any of the following: 
  
 3.1
Indebtedness. Create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness without the written consent of the Required DB Noteholders, except:

  
 (a) Indebtedness evidenced by the Secured Promissory Notes;

  

 17 

 (b) Indebtedness set forth on Schedule 3.1 to this Annex II; 
  
 (c) Permitted Purchase Money Indebtedness; 
  
 (d) refinancings, renewals, or extensions of Indebtedness permitted under
clauses (b) and (c) of this Section 3.1 (and continuance or renewal of any Permitted Liens associated therewith) so long as: (i) the terms and conditions of such refinancings, renewals, or extensions do not, in Administrative Agent’s
judgment, materially impair the prospects of repayment of the Obligations by the Company and its Subsidiaries or materially impair the Company and its Subsidiaries’ creditworthiness, (ii) such refinancings, renewals, or extensions do not result
in an increase in the then extant principal amount of, or interest rate with respect to, the Indebtedness so refinanced, renewed, or extended or add one or more borrowers as liable with respect thereto if such additional borrowers were not liable
with respect to the original Indebtedness, (iii) such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions,
that, taken as a whole, are materially more burdensome or restrictive to the Company or any of its Subsidiaries, (iv) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the
terms and conditions of the refinancing, renewal, or extension Indebtedness must be include subordination terms and conditions that are at least as favorable to the Noteholders as those that were applicable to the refinanced, renewed, or extended
Indebtedness, and (v) the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person that is liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was
refinanced, renewed, or extended; 
  
 (e) Indebtedness under the
WFF Loan Documents; 
  
 (f) endorsement of instruments or other
payment items for deposit; and 
  
 (g) Indebtedness composing
Permitted Investments. 
  
 3.2 Liens. Create,
incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its assets, of any kind (expressly including, without limitation, Real Property), whether now owned or hereafter acquired, or any income or profits
therefrom, except for Permitted Liens (including Liens that are replacements of Permitted Liens to the extent that the original Indebtedness is refinanced, renewed, or extended under Section 3.1(d) of this Annex II and so long as the
replacement Liens only encumber those assets that secured the refinanced, renewed, or extended Indebtedness). 
  
 3.3 Restrictions on Fundamental Changes. 
  
 (a) Enter into any merger, consolidation, reorganization or recapitalization, or reclassify its Stock; provided, that (i) the Company may be
merged with or into or consolidated into a wholly-owned direct or indirect Subsidiary of the Company if the Company is the surviving entity; (ii) any Guarantor may be merged with or into or consolidated into a wholly-owned direct or indirect
Subsidiary of the Company if the surviving entity is a Guarantor; (iii) any Material Subsidiary may be merged with or into or consolidated into an Excluded Subsidiary if the surviving entity is a Material Subsidiary; and (iv) any Subsidiary may be
merged into the Company. 
  
 (b) Liquidate, wind up, or dissolve
itself (or suffer any liquidation or dissolution). 
  

 18 

 (c) Other than in Permitted Dispositions, convey, sell, lease, license, assign, transfer, or otherwise
dispose of, in one transaction or a series of transactions, all or any substantial part of its assets. 
  
 3.4 Disposal of Assets. Other than in Permitted Dispositions or, in any twelve month period in the ordinary course of business consistent
with past practices, assets having a book value on the Books of the Company of up to $100,000 in the aggregate, convey, sell, lease, license, assign, transfer, or otherwise dispose of any of the assets of the Company or any Subsidiary of the
Company. 
  
 3.5 Change Name. Change the
Company’s or any Subsidiary of the Company’s name, FEIN, organizational identification number, state of organization, or organizational identity; provided, however, that the Company or a Subsidiary of the Company may change
its name upon at least 30 days prior written notice by Company to Collateral Trustee of such change and so long as, at the time of such written notification, such Borrower or such Subsidiary provides any financing statements necessary to perfect and
continue perfected Collateral Trustee’s Liens. 
  
 3.6
Nature of Business. Make any change in the principal nature of their business. 
  
 3.7 Prepayments and Amendments. Except in connection with a refinancing permitted by Section 3.1(d) of this Annex II, 
  
 (a) prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of the Company or any Subsidiary of the
Company, other than the Obligations in accordance with this Agreement, or 
  
 (b) directly or indirectly, amend, modify, alter, increase, or change any of the terms or conditions of any agreement, instrument, document, indenture, or other writing evidencing or concerning Indebtedness permitted
under Section 3.1(b) or (c) of this Annex II. 
  
 3.8 Change of Control. Cause, permit, or suffer, directly or indirectly, any Change of Control. 
  
 3.9 Distributions. Other than distributions or declaration and payment of dividends by the Company to another Borrower or by a Subsidiary of
the Company to the Company, make any distribution or declare or pay any dividends (in cash or other property, other than common Stock) on, or purchase, acquire, redeem, or retire any of the Company’s Stock, of any class, whether now or
hereafter outstanding. 
  
 3.10 Accounting Methods.
Modify or change their fiscal year or their method of accounting (other than as may be required to conform to GAAP or to conform to more commonly used principles that are a part of GAAP) or as required by applicable law or enter into, modify, or
terminate any agreement currently existing, or at any time hereafter entered into with any third party accounting firm or service bureau for the preparation or storage of the Company and its Subsidiaries’ or their Subsidiaries’ accounting
records without said accounting firm or service bureau agreeing to provide Administrative Agent information regarding the Company and its Subsidiaries’ and their Subsidiaries’ financial condition. 
  
 3.11 Investments. Except for Permitted Investments, directly or
indirectly, make or acquire any Investment, or incur any liabilities (including contingent obligations) for or in connection with any Investment; provided, that the Company and its Subsidiaries shall not have 
  

 19 

 Permitted Investments (other than in the Cash Management Accounts (as defined in the WFF Facility)) in Deposit Accounts
or Securities Accounts in an aggregate amount in excess of $100,000 outstanding at any one time unless the Company or its Subsidiary, as applicable, and the applicable securities intermediary or bank have entered into Control Agreements or similar
arrangements governing such Permitted Investments in order to perfect (and further establish) the Collateral Trustee’s Liens in such Permitted Investments (subject in all respects to the terms of the Intercreditor Agreement). Subject to the
foregoing proviso, the Company shall not, and shall not permit its Subsidiaries to, establish or maintain any Deposit Account or Securities Account unless Collateral Trustee or WFF, as agent under the WFF Facilities, shall have received a Control
Agreement in respect of such Deposit Account or Securities Account. 
  
 3.12 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any transaction with any Affiliate of the Company, other than one of the Company’s wholly owned Subsidiaries, except for transactions
that are in the ordinary course of the Company and its Subsidiaries’ business, upon fair and reasonable terms, that are fully disclosed to Administrative Agent, and that are no less favorable to the Company and its Subsidiaries than would be
obtained in an arm’s length transaction with a non-Affiliate. 
  
 3.13 Suspension. Suspend or go out of a substantial portion of their business. 
  
 3.14 Compensation. Increase the annual fee or per-meeting fees paid to the members of its Board of Directors during any year by more than
15% over the prior year; pay or accrue total cash compensation, during any year, to its officers and senior management employees in an aggregate amount in excess of 115% of that paid or accrued in the prior year. 
  
 3.15 Equipment with Bailees. Store the Equipment of the Company
and its Subsidiaries or their Subsidiaries at any time now or hereafter with a bailee, warehouseman, or similar party without Collateral Trustee’s prior written consent. 
  
 3.16 Financial Covenants. 
  
 (a)Minimum of EBITDA. Fail to maintain or achieve at least the required amount set forth in the following table for
the applicable period ending in the month set forth opposite thereto: 
  

			
	 Applicable Amount

	  	 Applicable Period (Month-end)

	 $(9,880,000)
	  	October 2004
	 $(10,800,000)
	  	November 2004
	 $(11,500,000)
	  	December 2004

  
 EBITDA shall be
calculated on a cumulative twelve-month basis building through the first twelve calendar months occurring ending after the Closing Date (commencing with January of 2004) and thereafter on a rolling twelve-month basis. EBITDA shall be measured on a
quarter-end basis. Administrative Agent and the Company shall establish required minimum EBITDA amounts for quarter occurring after December 31, 2004 on the basis of projections and business plans for such periods prepared and delivered by the
Company and its Subsidiaries and accepted by Administrative Agent in its Permitted Discretion, but in any event in amounts not less than the amount required for the quarter ending December 31, 2004. 
  
 (b) Make 
  

 20 

 (i) Funded Capital Expenditures. Except as permitted under 3.16(b)(ii), make
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

  
 (ii)
Financed Capital Expenditures. Except as permitted under Section 3.16(b)(i), capital expenditures in any period in excess of the amount set forth in the following table for the applicable period: 
  

			
	 Fiscal Year 2004

	  	 Fiscal Year 2005

	 $7,000,000
	  	$7,000,000

  
 Administrative Agent
shall establish required maximum Funded Capital Expenditure amounts for periods ending after December 31, 2004 and required maximum Financed Capital Expenditure amounts for periods ending after December 31, 2005 in accordance with the amounts
established by WFF under the WFF Facility or, if the WFF Facility is no longer in effect, on the basis of projections and business plans for such periods prepared and delivered by the Company and accepted by Administrative Agent in its Permitted
Discretion 
  
 3.17 Billing Practices. Modify or
change their billing practices. 
  
 3.18 Change of
Officers. Permit any change in the holders of the offices of President and Chief Executive Officer and Chief Financial Officer unless the individual named to any such office is satisfactory to Administrative Agent in its Permitted
Discretion. 
  
 3.19 Limitations on other Subordinated
Indebtedness. Directly or indirectly, incur any Indebtedness that is subordinate in right of payment to any other Indebtedness of the Company or such Material Subsidiary, as the case may be, unless such Indebtedness is either (a) pari
passu in right of payment with the Advances or such Material Subsidiary’s Guaranty, as the case may be or (b) subordinated in right of payment to the Advances, or such Material Subsidiary’s Guaranty, as the case may be. 
  
 3.20 Excluded Subsidiaries. Except as permitted under Section
3.12, transfer any capital or assets to an Excluded Subsidiary or incur any Indebtedness to an Excluded Subsidiary 
  
 4. EVENTS OF DEFAULT. 
  
 Any one or more of the following events shall constitute an event of default (each, an “Event of Default”) under the Secured Promissory
Notes: 
  
 4.1 If the Company and its Subsidiaries fail to pay
within 5 calendar days of the date when due and payable or when declared due and payable, all or any portion of the Obligations other than the principal amount payable under the Secured Promissory Notes (whether of interest (including any interest
which, but for the provisions of the Bankruptcy Code, would have accrued on such amounts), fees, charges and expense reimbursements due the Noteholders or other amounts constituting Obligations); 
  

 21 

 4.2 If the Company and its Subsidiaries fail to pay when due and payable or when declared due and
payable, all or any portion of the principal amount payable under the Secured Promissory Notes; 
  
 4.3 If the Company and its Subsidiaries fail to perform, keep, or observe any term, provision, covenant or agreement contained in any of the Loan
Documents and, except for those covenants set forth in Sections 2.7 or 2.11 or Section 3, such failure continues for a period of 30 days or more after the earlier of (a) the date on which the Company first receives notice of such failure from the
Administrative Agent or a Noteholder and (b) the first date on which an executive officer of the Company has actual awareness of such failure. 
  
 4.4 If any material portion of the Company’s or any Subsidiary of the Company’s assets is attached, seized, subjected to a writ or distress
warrant, levied upon, or comes into the possession and control of any third Person; 
  
 4.5 If an Insolvency Proceeding is commenced by the Company or any Subsidiary of the Company; 
  
 4.6 If an Insolvency Proceeding is commenced against the Company or any Subsidiary of the Company, and any of the following events occur: (a) the
applicable Borrower or Subsidiary consents to the institution of the Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the petition commencing the Insolvency Proceeding is not
dismissed within 60 calendar days of the date of the filing thereof, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or any substantial portion of the
business of, the Company or any Subsidiary of the Company, or (e) an order for relief shall have been entered therein; 
  
 4.7 If the Company or any Subsidiary of the Company is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any
material part of its business affairs; 
  
 4.8 If a notice of
Lien, levy, or assessment is filed of record with respect to the Company’s or any Subsidiary of the Company’s assets by the United States, or any department, agency, or instrumentality thereof, or by any state, county, municipal, or
governmental agency, or if any taxes or debts owing at any time hereafter to any one or more of such entities becomes a Lien, whether choate or otherwise, upon the Company’s or any Subsidiary of the Company’s assets and the same is not
paid before such payment is delinquent or the same is not subject to a Permitted Protest; 
  
 4.9 If a judgment or other claim becomes a Lien (other than a Permitted Lien) upon any material portion of the Company’s or any Subsidiary of the Company’s properties or assets ; 
  
 4.10 If there is a default in the WFF Loan Documents, any other Secured
Promissory Note or any material agreement to which the Company or any Subsidiary of the Company is a party (other than any customer contract) and such default (a) occurs at the final maturity of the obligations thereunder, or (b) results in a right
by the other party thereto, irrespective of whether exercised, to accelerate the maturity of the applicable Borrower’s or Subsidiary’s obligations thereunder, or to terminate such agreement, which termination is reasonably likely to have a
Material Adverse Change; 
  
 4.11 If the Company or any Subsidiary
of the Company makes any payment on account of Indebtedness that has been contractually subordinated in right of payment to the payment of the Obligations, except to the extent such payment is permitted by the terms of the subordination provisions
applicable to such Indebtedness; 
  

 22 

 4.12 If any representation, warranty, statement or Record fails to be true and accurate in all material
respects on the date as of which such information is dated or certified and or omits to state any fact necessary to make such representation, warranty, statement or Record (taken as a whole) not misleading in any material respect at such time in
light of the circumstances in which it was made to the Noteholders or any Agent by the Company, any Subsidiary of the Company, or any officer, employee, agent, or director of the Company or any Subsidiary of the Company; 
  
 4.13 If any of the Loan Documents that purports to create a Lien, shall, for
any reason, fail or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien on or security interest in the Collateral covered hereby or thereby; or 
  
 4.14 Any material provision of any Loan Document shall at any time for any
reason be declared to be null and void, or the validity or enforceability thereof shall be contested by the Company or any Subsidiary of the Company, or a proceeding shall be commenced by the Company or any Subsidiary of the Company, or by any
Governmental Authority having jurisdiction over the Company or any Subsidiary of the Company, seeking to establish the invalidity or unenforceability thereof, or the Company or any Subsidiary of the Company shall deny that it has any liability or
obligation purported to be created under any Loan Document. 
  

 23 

 Schedule 2.7 
  
 Locations of Equipment 
  
 The Equipment is located at the offices and facilities of the Company located in the following cities. 
  

	1.	Sierra Vista, Arizona 

	2.	El Segundo, California 

	3.	Los Angeles, California 

	4.	Port St. Lucie, Florida 

	5.	Atlanta, Georgia 

	6.	Terra Haute, Indiana 

	7.	Joplin, Missouri 

	8.	St. Joseph, Missouri 

	9.	Rocky Mount, North Carolina 

	10.	Arlington, Texas 

	11.	Irving, Texas (2 facilities) 

	12.	Elkins, West Virginia 

	13.	Fairmont, West Virginia 

  
 Address of Chief Executive Office of the Company 
  
 8001 Bent Branch Drive 
 Irving, Texas 75063 
  

 24 

 Schedule 3.1 
  
 Scheduled Indebtedness 
  
 1. Indebtedness relating to outstanding Letters of Credit as to which the Company or one of its Subsidiaries is the account party and any reimbursement and other obligations of the Company or any of its Subsidiaries
with respect thereto. 
  

 25 

 Schedule 3.2 
  
 Permitted Liens 
  
 The following table describes the existing Liens to which assets of the Company and its Subsidiaries are subject. 
  

							
	 Debtor

	  	 Secured Party

	  	 Delaware
UCC file
number and
date of
filing

	  	Collateral

	 Aegis Communications Group, Inc.
	  	Dell Financial Services, L.P.	  	 10855903
 8/2/01
	  	equipment
				
	 Aegis Communications Group, Inc.
	  	Heller Financial Leasing, Inc., Commercial Equipment Finance	  	 11140669
 10/2/01
	  	equipment
				
	 Aegis Communications Group, Inc.
	  	Heller Financial Leasing, Inc., Commercial Equipment Finance	  	 11369516
 11/1/01
	  	equipment
				
	 Aegis Communications Group, Inc.
	  	De Lage Landen Financial Services, Inc.	  	 21931223
 7/12/02
	  	equipment
				
	 Aegis Communications Group, Inc.
	  	De Lage Landen Financial Services, Inc.	  	 22246365
 9/3/02
	  	equipment
				
	 Aegis Communications Group, Inc.
	  	De Lage Landen Financial Services, Inc.	  	 22246373
 9/3/02
	  	equipment
				
	 Aegis Communications Group, Inc.
	  	Dell Financial Services, L.P.	  	 22754962
 10/31/02
	  	equipment
				
	 Aegis Communications Group, Inc.
	  	IOS Capital, LLC	  	 22826158
 11/8/02
	  	equipment
				
	 Aegis Communications Group, Inc.
	  	Dell Financial Services, L.P.	  	 23098211
 12/11/02
	  	equipment

  

 26 

							
	 Debtor

	  	 Secured Party

	  	 File number
and date

	  	Collateral

	Aegis Communications Group, Inc.	  	General Electric Credit Corporation	  	 30942212
 4/3/03
	  	equipment
				
	Aegis Communications Group, Inc.	  	IOS Capital, LLC	  	 31045957
 4/23/03
	  	equipment
				
	InterServ Services Corporation	  	Inter-Tel Leasing, Inc.	  	 20911010
 4/11/02
	  	equipment
				
	InterServ Services Corporation	  	Inter-Tel Leasing, Inc.	  	 20911051
 4/11/02
	  	equipment
				
	InterServ Services Corporation	  	Inter-Tel Leasing, Inc.	  	 20911093
 4/11/02
	  	equipment
				
	InterServ Services Corporation	  	Inter-Tel Leasing, Inc.	  	 20911135
 4/11/02
	  	equipment
				
	InterServ Services Corporation	  	Inter-Tel Leasing, Inc.	  	 20911200
 4/11/02
	  	equipment
	
	 Ontario Personal Property Security Registration System
  

	 EBA Direct, Inc.
	  	none	  	 	  	 

  

 27Master Factoring Agreement dated March 29, 2005

 Exhibit 10.54 
  
 MASTER FACTORING AGREEMENT 
  
 THIS MASTER FACTORING AGREEMENT (this “Agreement”) is made and entered into as of the 4th day of April, 2005, by and between AEGIS COMMUNICATION GROUP,
INC., a corporation organized and existing under the laws of Delaware (referred to throughout this Agreement as “you”, “your” and “yours”), and ROCKLAND CREDIT FINANCE LLC, a Maryland limited liability company (referred
to throughout this Agreement as “we”, “us”, “our” and “ours”). 
  
 1. PURCHASE AND SALE OF ACCOUNTS RECEIVABLE 
  
 1.1. Scope of Agreement. This Agreement contains the general terms and conditions under which, from time to time during the Term, you may offer and sell to us and we may accept and purchase from you in our sole
and absolute discretion certain of your Accounts specifically identified to this Agreement pursuant to Paragraph 1.2. As used herein, the term “Accounts” means, collectively, accounts, contract rights and other forms of obligation
arising in the ordinary course of business from the sale or lease of goods or rendition of services. 
  
 1.2. Implementation. Each purchase and sale of Accounts hereunder shall be evidenced by our mutual execution of an Assignment and Transfer of
Accounts Receivable substantially in the form of Exhibit A (each an “Assignment”). (An Account identified in a duly executed Assignment is hereinafter called an “Assigned Account.”) Each purchase of Accounts
shall be subject to all of the terms and conditions of this Agreement, which terms and conditions shall be deemed incorporated by reference into each Assignment. An Account shall be deemed accepted by us upon and only upon our execution and delivery
to you of the applicable Assignment. In connection with evaluating Accounts proposed for factoring hereunder, we reserve the right to conduct such due diligence and impose such related requirements as we may reasonably determine, including but not
limited to investigating the credit rating and/or credit history of the customer obligated on the Account and requiring an enforceable written contract between you and such customer upon terms acceptable to us. 
  
 1.3. Effect of Assignment. Without the necessity for further action,
each Assignment shall automatically vest in us all of your right, title and interest in and to the Assigned Accounts together with (a) full power to collect, sue for, compromise, assign, in whole or in part, or in any other manner enforce collection
thereof in our name or otherwise, (b) any notes or drafts related thereto, (c) the contracts under which such Accounts arose, (d) your books and records relating thereto, whether written or recorded electronically on computer-readable discs or any
other digital or machine-readable form or medium (“Account Records”), (e) any returned, rejected or repossessed goods (if any) giving rise to such Accounts, (f) your rights as an unpaid vendor or lienor, (g) all rights of stoppage
in transit, replevin, repossession and reclamation, (h) all deposits and security therefor and guarantees thereof, (i) all rights to insurance proceeds resulting therefrom, and (j) all payments or other proceeds of the foregoing in any form (all of
the foregoing being included in the term “Assigned Accounts”). Nothing contained in this Agreement or any Assignment shall be deemed to constitute an assumption by us of any liability with respect to or impose any duty or obligation upon
us in favor of any Account Debtor or any other third party in connection with the Accounts. 
  
 1.4. Account Documentation. Upon acceptance by us of any Assignment Agreement, you will deliver to us: (a) copies of all documents evidencing the Accounts listed thereon and (b) such other documentation as we
require, in form satisfactory to us in all respects. You will maintain all shipping documents, delivery receipts and invoices relating to Assigned Accounts, available for inspection and copying by us, and you will deliver them to us promptly upon
our request. Each sale of Accounts will be reflected as a sale on your books and financial statements in accordance with generally accepted accounting principles. 
  
 1.5. Exclusivity. During the Term of this Agreement, you will not sell, factor, assign, or pledge any of your
Accounts except to us or for our benefit under this Agreement, nor will you obtain or utilize any third-party line of credit except as we may otherwise agree in writing in our sole and absolute discretion. Notwithstanding the foregoing, if you duly
tender an Account for sale to us upon the terms of this Agreement and we reject the Account in writing or 30 days shall have elapsed without any action by us with respect to the Account, you may factor or pledge such Account without restriction
under this paragraph. 
  
 2. FEES AND PAYMENT 
  
 2.1. Purchase Price. The purchase price for each Assigned Account
shall be the net face value of the Account less the applicable Discount Fee (the “Purchase Price”), subject to the adjustments provided in Paragraph 2.3. 
  
 2.2. Discount Fee. As used herein, with respect to any Assigned Account, “Discount Fee” means a
percentage of the net face value of the Account based on the number of days elapsing from and including the date of our acceptance of the Account to and including the date on which we shall have collected the Account in full in good funds, all as
set forth more particularly in the table immediately below, provided that in no event shall the Discount Fee be less then twenty-five dollars ($25.00). 
  

			
	 Days Elapsed

	  	 Discount Fee

	 1-30
	  	0.75%
	 31-60
	  	1.50%
	 61-75
	  	1.95%
	 76-90
	  	2.40%
	 Over 90
	  	 0.45% for each period of 15 days (or
 portion thereof) elapsing until collection

  
 2.3. Payment.

  
 2.3.1. Upon our acceptance of each Assignment, we will pay to
you on account of the Purchase Price an amount equal to eighty-five percent (85%) (the “Advance Rate”) of the aggregate net face value of the Assigned Accounts covered thereby (the “Advance Payment”); provided,
however, that at our election and upon notice to you at any time after the occurrence of an Event of Default, the Advance Rate shall be reduced by thirty percent (30%) (or such lesser percentage as we in our sole and absolute discretion may
determine) for any or all subsequent Assignments or individual Assigned Accounts. With respect to any Assigned Account, on or before the fifth business day following the date on which we have collected all of such Account in full in good funds, we
will pay to you the balance of the Purchase Price for such Account, if any, minus all returns, credits, allowances and discounts on the shortest or, at our option, on any alternative terms of sale offered by you to Account Debtors, and all other

 
unpaid sums, liabilities, and Obligations with respect to such Account charged or chargeable to your account under Section 3 or otherwise under this
Agreement (“Chargebacks”). 
  
 2.3.2. Upon our receipt
of any payment with respect to an Account other than an Assigned Account, so long as you are not in default of any your Obligations hereunder, we shall remit such payment to you or, at your request, apply such payment as you may direct, subject to
any then outstanding Chargebacks. Remittances required by this subparagraph 2.3.2 will be paid to you weekly except as otherwise directed by you. 
  
 2.3.3. With respect to any Assigned Account, if due to the passage of time the excess of the net face value of the Account over our Advance Payment is
less than the accrued Discount Fee: (a) the Purchase Price of such Account shall deemed to be the amount of the Advance Payment and you shall be entitled to no further payment in respect thereof; and (b) you shall be liable to us for the amount of
such deficiency as the same may accrue until collection. 
  
 2.4.
Minimum Volume Fee. Any provision of this Agreement to the contrary notwithstanding, if as of the close of any month the average monthly aggregate net face value of all Accounts offered by you and purchased by us during the three-month period
then ended is less than $3,500,000 (the “Guaranteed Monthly Volume”), you will pay to us as a supplemental fee for the month then ended an amount equal to the Discount Fee we would have earned on the difference, assuming collection
within 30 days (the “Minimum Volume Fee”). 
  
 2.5. Noncompliance Fees. Without limiting any of our general rights and remedies for breaches of this Agreement by you: 
  
 2.5.1. If you fail for any reason to include the legend required by the last sentence of Subparagraph 3.1.1 on any invoice representing an Account, we
will assess and you will pay on demand a missing notation fee in the amount of fifteen percent (15%) of the net face value of such Account. 
  
 2.5.2. If you receive any payment on an Account and fail to comply with the provisions of Subparagraph 3.1.3, we will assess and you will pay on demand a
misdirected payment fee in the amount of fifteen percent (15%) of the net face value of such Account. 
  
 2.6. Exit Fee. If you elect to terminate this Agreement pursuant to Subparagraph 8.2.1 and the effective date of termination is other than the last
day of the initial period or any renewal period, as the case may be, you will pay to us on or before the termination date an exit fee equal to the Discount Fees we would have earned each month on the Guaranteed Monthly Volume (assuming collection
within 30 days) multiplied by the number of months remaining in the Term, duly prorated as necessary for any partial months. Such fee shall be in addition to, and not in lieu of, the Minimum Volume Fee, if any, assessable for the month in which this
Agreement is terminated. 
  
 2.7. Charge in Lieu of
Payment. In our sole discretion, we may charge your account for all fees and other amounts you are required to pay us under this section. 
  
 3. COLLECTION OF ACCOUNTS 
  
 3.1. Collection Procedure. 
  
 3.1.1. During the term of this Agreement and continuing until all Assigned Accounts and all of your Obligations hereunder have been paid fully paid and
performed, you shall promptly (and we at our option may) notify in writing all persons obligated to make payments on or with respect to any Account (collectively, “Account Debtors”) (i) that you have granted to us a security interest in
the Account or, if applicable, that the Account has been sold and that the amount due or to become due has been assigned to us, (ii) that payment is to be made to us (and not to you) into a designated lockbox over which we have exclusive dominion,
control and power of access and withdrawal (a “Lockbox”), and (iii) that all checks and other items of payment in respect of the Account are to be made payable to our order. You will (and we at our option may) obtain from each Account
Debtor written acknowledgment by such Account Debtor confirming its receipt of such notice. On and after the date hereof, you shall also include such notice plainly and conspicuously as a legend on the face of each invoice you issue representing an
Assigned Account. 
  
 3.1.2. You hereby authorize us at our option
and in our sole discretion to collect and receive payments directly from Account Debtors in our own name. If we elect to exercise this option with respect to any Account, you shall (and we at our option may) include in the notices required under
Subparagraph 3.1.1 a further statement that the Account represented thereby has been sold and assigned to us and that the Account Debtor shall make all checks in respect of the Account payable to us or our designee. 
  
 3.1.3. If you receive any payment on any Account, you shall immediately remit
such payment in the form received (with any necessary endorsement) directly to us. Until so remitted, you will hold such payment in trust for us separate and apart from all of your other funds. 
  
 3.2. Power of Attorney. You hereby irrevocably constitute and appoint
us, or any of our agents or employees, as your lawful attorney-in-fact (without requiring us to act as such), coupled with an interest, to exercise at any time any of the following powers: (i) to receive, endorse and deposit all payments from
Account Debtors; (ii) to transmit to any party the notices required by Subparagraph 3.1.1; (iii) to institute any proceedings deemed by us necessary to effect collection of Accounts; (iv) to settle, compromise or litigate any dispute concerning any
Account; and (v) to execute in your name such documents, instruments and affidavits as we may require from time to time in order to evidence and perfect our security interest in the Collateral or (without waiving your representation in Subparagraph
5.5.5) to satisfy any statutory condition to payment of an Account under applicable law. Any act of ours not involving fraud, gross negligence or criminal acts, as your lawful attorney-in-fact shall not render us liable for any acts of omission or
commission, nor for any error of judgment or mistake of fact or law. 
  
 3.3. Costs and Expenses. You will reimburse us on demand for any and all fees, costs, and expenses (including but not limited to reasonable attorneys’ fees) incurred by us in connection with protecting, maintaining, preserving
or enforcing your Accounts and/or our rights under this Agreement or in connection with any bankruptcy, insolvency, or similar proceeding involving you or your assets; making lien or title examinations or filing notices with respect to your
Accounts; defending or prosecuting any action or proceeding related to this Agreement; and filing and recording financing statements (including amendments thereto and continuation statements thereof) and termination statements under the UCC relating
to our security interest in the Collateral. 
  
 3.4.
Disputes. You will notify us promptly of any Dispute concerning an Account. If we request you to do so, you will use your best efforts to settle the Dispute. Alternatively, we may (but shall be under no obligation to) attempt to settle,
compromise or litigate the Dispute upon such terms as we in our sole discretion deem advisable, for your account and risk and at your sole expense. In no event shall you shall settle, compromise or adjust any Account or grant any additional
discounts, allowances or credits thereon without in each case our prior written consent. As used herein, “Dispute” means any actual or alleged defense, counterclaim, offset, dispute or other claim asserted by the Account Debtor with
respect to an Account other than 

 the Account Debtor’s Insolvency. “Insolvency,” with respect to an Account Debtor means the
financial inability of an Account Debtor to make payment at maturity unless the relevant Account is the subject of a Dispute. 
  
 3.5. Indemnification. You will indemnify and defend us and hold us harmless from and against any and all liabilities, claims, costs and expenses
(including but not limited to reasonable attorneys’ fees and court costs) related to or arising out of our commercially reasonable efforts to collect or attempt to collect any Account, except criminal acts or gross negligence on our part

  
 3.6. No Agency. Any provision of this Agreement to the
contrary notwithstanding, nothing in this Agreement shall be construed to constitute us as your agent or to obligate us to assume any of your obligations with respect to any Account. We will not have any liability for any error or omission or delay
occurring in the settlement, collection or payment of any Account. 
  
 4.
RECOURSE 
  
 4.1. Repurchase of Accounts. In the event
that (a) an Assigned Account becomes the subject of a Dispute, (b) there exists any breach of your representations, warranties or covenants under this Agreement with respect to an Assigned Account, (c) an Assigned Account is not paid on or before
the expiration of ninety (90) days from its invoice date (such an Account being hereinafter referred to as a “Late Account”), or (d) we reasonably deem ourselves insecure with respect to any Assigned Account in light of material
changes in the creditworthiness of the Account Debtor or otherwise, then and in any such event you shall immediately upon demand by us (whether written or oral) repurchase the Account from us for a purchase price (the “Account Repurchase
Price”) equal to (i) the sum of the Advance Payment for such Account plus any and all accrued fees hereunder (calculated to the date of repurchase) and unreimbursed costs and expenses associated with such Account minus (ii) the paid
portion of such Account, if any. With respect to any Assigned Account that becomes the subject of a Dispute, your obligations under this paragraph are irrespective of any accord and satisfaction of such Account as against the Account Debtor by
operation of Section 3-311 of the Uniform Commercial Code as adopted and in effect in the applicable jurisdiction (the “UCC”). 
  
 4.2. Repurchase on Default. Without limiting our other remedies under this Agreement or applicable law, upon the occurrence of an Event of Default
as hereinafter defined, you shall immediately upon demand by us (whether written or oral) repurchase from us all outstanding Assigned Accounts for the aggregate Account Repurchase Price calculated in accordance with Paragraph 4.1 
  
 5. REPRESENTATIONS AND WARRANTIES 
  
 To induce us to purchase Accounts from time to time, you make the following representations
and warranties, each of which will survive the execution and delivery of this Agreement and will be deemed to be continuous and renewed as of the date of our acceptance of each Assignment. Such representations and warranties shall survive the
termination of this Agreement. 
  
 5.1. General. You are a
corporation duly organized, existing and in good standing under the laws of Delaware. The preamble to this agreement sets forth truly and accurately your exact legal name as registered in such jurisdiction. You do business exclusively under such
name and do not use any trade name or other fictitious name. 
  
 5.2. Authority and Enforceability. You represent and warrant that you have all requisite power and authority to execute, deliver and perform this Agreement, including each Assignment delivered hereunder. This Agreement has been duly
and validly executed and delivered by you and constitutes your legal, valid, and binding obligation enforceable against you in accordance with its terms. The execution, delivery and performance of this Agreement by you does not contravene your
articles of incorporation, by-laws or operating or partnership agreement, as applicable, or any other agreement, instrument, or commitment to which you are a party or by which you or any of your assets or properties are bound. 
  
 5.3. Place of Business. Your principal place of business and your
books and records relating to the Accounts are located at the address set forth at the end of this Agreement. 
  
 5.4. Collateral. You are the sole owner of the Collateral free and clear of all liens and encumbrances (including liens and encumbrances
subordinate to our lien and security interest), except for those created by this Agreement or permitted by us in writing. As to inventory which is included in the Collateral, such inventory is not stored with a bailee, warehouseman or similar party
without our prior written consent, is not stored with a bailee, warehouseman or similar party or under consignment to or from any person and is currently salable or usable in the normal course of your business. 
  
 5.5. With Respect to Accounts. With respect to each Assigned Account,
you represent and warrant that: 
  
 5.5.1. You are the sole owner
of the Account free and clear of all liens and encumbrances (including liens and encumbrances subordinate to our lien and security interest), except for those created by this Agreement or permitted by us in writing. 
  
 5.5.2. You are not affiliated with and do not own, control, or exercise
dominion, in any way whatsoever, over the business of the Account Debtor. 
  
 5.5.3. The Account represents an accurate and undisputed statement of indebtedness of the Account Debtor on account of a bona fide sale or lease of goods or the performance of services by you. 
  
 5.5.4. The Account is the valid obligation of and is legally binding upon the
Account Debtor enforceable against the Account Debtor in accordance with its terms. All signatures and endorsements appearing on the invoices and documents relating to the Accounts are genuine, and all signatories and endorsers have full capacity
and authority and were fully authorized to contract for the purchase or lease of the goods and/or services giving rise to the Account. 
  
 5.5.5. The Account is not subject to any Dispute, defense, offset, counterclaim or any allowance, deduction, contingency or condition. 
  
 5.5.6. The Account is not on a bill-and-hold, guaranteed sale,
sale-and-return, sale on approval, consignment or any other repurchase or return basis. 
  
 5.5.7. To the best of your knowledge based on due inquiry, the Account Debtor is not Insolvent. 
  
 5.5.8. The sale of the Account to us is accurately and properly entered and reflected on your books and records. 
  
 6. COVENANTS 
  
 6.1. Periodic Reports. Until full and indefeasible payment of all of your Obligations hereunder, you will furnish to
us the following information regarding your operations and financial condition from time to time as specified: 
  
 6.1.1. Within twenty (20) days after the close of each month a balance sheet, income statement, and cash flow statement and copies of all bank statements
and reconciliations each as of the last day of such month and year to date. 

 6.1.2. Within five (5) days after the close of each month, (a) an accounts payable aging and list and (b)
an accounts receivable aging and list (whether or not such accounts are Assigned Accounts), in each case as of the last day of such month, in such form and containing such detail as we may reasonably require. 
  
 6.1.3. Copies of all receipts and other evidence of your payment of United
States withholding, FICA and applicable state and local payroll taxes, in each case as such payments are made; and copies of any and all FICA and FUTA income tax withholding reports when and as filed. 
  
 6.1.4. Within sixty (60) days before the close of your fiscal year, a
reasonable projection (including assumptions) of your sales and net income and operating expenses on a monthly basis through the end of the next succeeding fiscal year. 
  
 6.1.5. Within ninety (90) days following the close of your fiscal year, a balance sheet and income statement as of the close
of such fiscal year and for the year then ended. 
  
 6.1.6. Copies
of your federal income tax returns (together with all schedules) and extensions requests, if any, when and as filed. 
  
 6.1.7. Such additional financial information regarding your operations and financial condition as we may require in our discretion from time to time.

  
 6.2. Standards. All financial statements provided by
you under this Section 6 shall be prepared in accordance with generally accepted accounting principles, consistently applied. You hereby represent and warrant that any and all financial statements provided by you are and shall be true, accurate and
complete. 
  
 6.3. Field Audits. Upon reasonable notice by
us, you will permit any authorized representative designated by us to visit your place or places of business during business hours and to inspect your books of account, records, correspondence and other documents and to make copies thereof and
extracts therefrom. You authorize us to discuss your affairs, finances and accounts with your employees, agents, and independent certified public accountants or other parties preparing financial statements and/or tax returns for you or on your
behalf. Any such inspection conducted after an Event of Default shall be at your sole cost and expense and you will reimburse us for such costs and expenses on demand. 
  
 6.4. Other Covenants. Until full and indefeasible payment of all of your Obligations hereunder: 
  
 6.4.1. You shall: 
  
 6.4.1.1. Comply in all material respects with all applicable laws, rules,
regulations and orders applicable to your business; 
  
 6.4.1.2.
Maintain insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as is consistent with past practice and/or as is usually carried by companies engaged in similar businesses in the same
general areas in which you operate; 
  
 6.4.1.3. Maintain and
preserve of your assets and properties, real and personal, in good working order and condition, ordinary wear and tear excepted; 
  
 6.4.1.4. Preserve and maintain your corporate existence and good standing, rights, franchises and privileges under applicable law; 
  
 6.4.1.5. Pay and discharge before the same shall become delinquent (i) all
taxes, assessments and governmental charges or levies imposed upon you or your property, and (ii) all lawful claims which, if unpaid, might by operation of law or otherwise become a lien upon your property; 
  
 6.4.1.6. Maintain yourself in good standing with any and all federal and
state licensing and regulatory authorities and governmental agencies having jurisdiction over your activities; and 
  
 6.4.1.7. Comply fully with all laws, rules, regulations, and executive orders of federal, state and municipal governments, bureaus, commissions, agencies
or any of them applicable to you or your assets or properties. 
  
 6.4.2. Without our prior written consent, which consent may be withheld in our sole and absolute discretion, though not unreasonably, you shall not: 
  
 6.4.2.1. Permit or consent to the creation or incurrence by you of any indebtedness or obligation for borrowed money, other than to us pursuant to this
Agreement; 
  
 6.4.2.2. Make any material change in the nature of
your business; or 
  
 6.4.2.3. 
  
 6.4.2.4. Grant, create, incur or suffer or permit to exist any mortgage,
pledge, security interest in or lien upon, or for any other purpose assign or transfer, either absolutely or as collateral security, any of the Collateral except to or in favor of us pursuant to this Agreement or as we may otherwise agree in
writing. 
  
 7. SECURITY AGREEMENT 
  
 7.1. Grant of Security Interest; Collateral Defined. To secure
payment and performance of all of your obligations under this Agreement, including, without limitation, repurchase and indemnity obligations and obligations for costs and expenses (collectively, your “Obligations”), you hereby
pledge, assign and grant to us a continuing lien and security interest in the following property, both now owned and existing and hereafter created, acquired and arising, regardless of where located (collectively, the “Collateral”):

  
 7.1.1. All of your accounts, whether or not accepted by us or
specifically sold to us; 
  
 7.1.2. All of your goods, including
but not limited to inventory;OK 
  
 7.1.3. All cash and non-cash
proceeds and products of any of the foregoing, including any claim against third parties in any way related to the foregoing; 
  
 7.1.4. All rights which you now have or hereafter may have to the payment of money not otherwise included in the foregoing, including without limitation
tax refunds and proceeds of insurance of every kind and description; and 
  
 7.1.5. All books and records relating to any of the foregoing, including but not limited to hard drives, compact disks, floppy disks, and/or other digital storage media comprising such records in whole or in part.

 7.2. Financing Statements. Pursuant to Section 9-502 of the UCC, you hereby authorize us to file
such financing statements (including amendments thereto and continuation statements thereof) as we may reasonably require in order to perfect our security interest in the Collateral 
  
 7.3. Defined Terms. As used in this Section, uncapitalized terms describing categories of Collateral shall have the
meaning, if any, respectively ascribed to such terms under the UCC. 
  
 8. TERM
AND TERMINATION 
  
 8.1. Initial Term; Renewal. The
term of this Agreement shall be an initial period of one (1) year, commencing on the date of the first above written. Unless terminated in accordance with Paragraph 8.2, this Agreement shall automatically renew for successive one (1) year periods
without the necessity of any further notice or action on the part of either party hereto. (The period of effectiveness of this Agreement, including the initial period and any renewal period, is sometimes referred to herein as the
“Term.”) 
  
 8.2. Termination. 

 
 8.2.1. Subject to Paragraph 2.6, you may terminate this Agreement by
written notice to us not less than sixty (60) days prior to the effective date of termination stipulated in such notice. 
  
 8.2.2. We may terminate this Agreement (i) at any time for our convenience by written notice to you upon not less than ten (10) days prior to the
effective date of termination stipulated in such notice or (ii) immediately upon written or oral notice to you upon the occurrence of an Event of Default. 
  
 8.3. Survival of Terms. Notwithstanding the foregoing, the provisions of this Agreement and all of our rights and interests hereunder shall survive
any termination pursuant to Paragraph 8.2 and shall continue in full force and effect until all Assigned Accounts and all of your Obligations hereunder have been paid fully paid and performed. 
  
 8.4. Termination Statement. At any time after later of (i) the
effective date of the termination of this Agreement or (ii) the date on which all Assigned Accounts and all of your Obligations hereunder have been paid fully paid and performed, you may request and we will deliver to you UCC termination statements
with respect to any and all recorded financing statements covering the Collateral then in our favor, provided such request is in writing and accompanied by a written general release by you in our favor in form and substance satisfactory to us
and our counsel. To the maximum extent permitted by law, you hereby waive any and all statutory rights under Section 9-509 of the UCC to require us to deliver UCC termination statements in respect of the Collateral unless and until the conditions of
this section have been satisfied. 
  
 9. DEFAULT AND REMEDIES 

 
 9.1. Events of Default. As used in this Agreement, “Event
of Default” means any of the following: 
  
 9.1.1. Any
material breach by you of any term, covenant, condition, representation or warranty under this Agreement. 
  
 9.1.2. Without limiting the generality of the foregoing, the existence of unresolved Disputes or any breach or breaches of your representations,
warranties or covenants under this Agreement affecting or with respect to Assigned Accounts which, in the aggregate, constitute or exceed twenty-five percent (25%) (the “Default Percentage”), by face value or number, of all then
outstanding Assigned Accounts. 
  
 9.1.3. The accumulation of Late
Accounts (whether or not then outstanding) since the commencement of the Term which in the aggregate constitute or exceed, by face value or number, the Default Percentage of all Assigned Accounts since the inception of the Term. 
  
 9.1.4. Any failure by you to pay or reimburse us, as the case may be, any
monetary amount to which we are entitled hereunder as and when the same shall become due. 
  
 9.1.5. Any material adverse change in your management, financial condition or business prospects or those of any guarantor of your Obligations. 
  
 9.1.6. The discontinuance or suspension of your present business operation. 
  
 9.1.7. Your becoming insolvent or unable to meet your debts as they mature,
or the commencement against you of any proceeding for relief under any provision of any federal or state bankruptcy, insolvency or other similar law, or the filing or issuance against you of any injunction, attachment, judgment or lien on any of
your property, or the appointment of a receiver, custodian or trustee of any kind for you or any of your property. 
  
 9.2. Remedies. In addition to any other remedies available to us under this Agreement or applicable law, upon and after the occurrence of an Event
of Default: 
  
 9.2.1. We will have the right to enforce against
you immediate payment of all of your Obligations. 
  
 9.2.2. With
respect to the Collateral, we will have and may exercise all of the rights of a secured party under the UCC. 
  
 9.2.3. You hereby authorize and empower any attorney designated by us or any clerk of any court of record to appear for you in any court of record and
confess judgment against you without prior hearing, in favor of us for and in the amount of your Obligations then outstanding plus costs of suit and attorneys’ fees in an amount equal to 10% of the Obligations then outstanding. Such authority
and power may be exercised on one or more occasions, from time to time, in the same or different jurisdictions, as often as we shall deem necessary or desirable, for all of which this Agreement shall be a sufficient warrant. 
  
 9.2.4. We may notify the postal authorities to change the address for
delivery of your mail to such address as we may designate and shall have the right to receive, open, and maintain in our custody any and all of your mail thereafter; provided, however, that we will turn over to you any mail not related directly or
indirectly to the enforcement of our remedies hereunder. 
  
 9.3.
Remedies Cumulative. Each right, power and remedy provided for herein or otherwise existing shall be cumulative and concurrent and shall be in addition to every other right, power and remedy existing hereunder, by law or otherwise. The
exercise by us of any one or more such rights, powers or remedies shall not preclude the simultaneous or later exercise by us of any or all such other rights, powers or remedies. 
  
 10. ARBITRATION 
  
 Any claim or demand arising out of any alleged breach of this Agreement or arising out of any dispute or controversy under or relating to this Agreement
in which the amount in controversy is $100,000 or less, other than any confession of judgment proceeding pursuant to Subparagraph 9.2.3, shall be decided by a single arbitrator under the Rules of the American Arbitration Association. The prevailing
party, as determined by the arbitrator, shall be awarded reasonable attorneys’ fees 

 and costs (including all arbitration fees and expenses of the arbitrator) incurred by that party in connection with the
arbitration and any post-arbitration proceedings to enforce the award or otherwise. The award rendered by the arbitrator shall be final and binding on both of us and judgment on such award may be entered by either party in any court of competent
jurisdiction. The arbitration provisions hereof shall, with respect to such controversy or dispute, survive the termination of this Agreement. Nothing herein contained shall be deemed to give the arbitrator any authority, power, or right to alter,
change, amend, modify, add to, or subtract from any of the provisions of this Agreement. 
  
 11. MISCELLANEOUS 
  
 11.1. Notices. Notices shall be deemed given to a party when sent or dispatched to such party by certified or registered mail or private overnight express mail, postage or charges prepaid, or by facsimile copy, at the address of such
party set forth below its signature hereto, or to such other notice address as a party may designate by written notice to the other party. 
  
 11.2. Binding Effect. This Agreement will bind you and your successors and assigns, and will inure to the benefit of us and our successors and
assigns. 
  
 11.3. No Assignment. You may not assign or
transfer any of your rights or obligations under this Agreement without our prior written consent, which consent may be withheld by us in our sole and absolute discretion. Any assignment or transfer prohibited by this paragraph shall be null and
void. 
  
 11.4. Complete Agreement. This Agreement and the
related Assignments constitute the entire agreement between us with respect to the subject matter hereof and all previous agreements or discussions between us relating to the subject matter hereof, written or oral, are hereby terminated and/or
superseded by this Agreement. This Agreement may be amended or modified only by a written instrument signed by both parties. 
  
 11.5. No Waiver. No delay or failure by us in exercising any of our rights or remedies shall operate as a waiver of such or of any other right or
remedy, and no waiver shall be valid unless in writing signed by us and then only to the extent therein set forth. 
  
 11.6. Governing Law, Etc. This Agreement shall be deemed to have been made in the State of Maryland and shall be construed and enforced in
accordance with, and the validity and performance hereof shall be governed by, the laws of the State of Maryland, without regard to conflict of laws principles. 
  

11.7. Venue and Jurisdiction. Any judicial or arbitral proceeding arising out of or relating to this Agreement shall be brought and adjudicated
(a) in the case of any Original Claim made by you against us, solely in Baltimore, Maryland, and (b) in the case of any Original Claim made by us against you, in Baltimore, Maryland, or, at our sole and exclusive option, anywhere within the
jurisdiction where you are domiciled or have your principal place of business. As used in this Paragraph, “Original Claim” means the first formally commenced proceeding in connection with a matter or series of related matters, it
being understood and agreed that any subsequently asserted claim, defense or counterclaim arising out of or relating to such matter or matters shall be subject to the same venue as the Original Claim. For purposes of any judicial proceeding under
this Agreement, you hereby irrevocably consent, submit, and waive any and all objections to the personal jurisdiction of the state and federal courts of the State of Maryland over you and your affiliates. 
  
 11.8. Waiver of Jury Trial. Except as otherwise provided in Section
10, any suit, action or proceeding, whether claim or counterclaim, brought or instituted by either party hereto or any successor or assign of any party under or with respect to this Agreement or which in any way relates, directly or indirectly, to
this Agreement or any event, transaction or occurrence arising out of or in any way connected with this Agreement, or the dealings of the parties with respect thereto, shall be tried only by a court and not by a jury. EACH PARTY HEREBY WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING. 
  
 11.9. Further Assurances. Each of us shall do, take, execute, acknowledge if required and deliver such further and additional acts, actions, documents, instruments or writings not specifically referred to herein as may be necessary,
required, proper, desirable or convenient for the purpose of fully effectuating the provisions hereof. 
  
 11.10. Construction. This Agreement has been negotiated by the parties and shall be construed and interpreted fairly in accordance with its terms
and without any strict construction in favor of or against either party. 
  
 [The remainder of this page is intentionally left blank.] 
  
 IN
WITNESS WHEREOF, the parties hereto have executed this Agreement under seal as of the day and year first above written. 
  

													
	 Aegis Communications Group, Inc.

	 	 	 	 	 	 ROCKLAND CREDIT FINANCE LLC
	 	 
	 [full corporate name of client]
	 	 	 	 	 	 	 	 
							
	 By
	 	 /s/  Richard N. Ferry

	 	 (SEAL)
	 	 	 	 By
	 	 /s/  John Fox

	 	 (SEAL)

											
	 [notarized signature of authorized officer]
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Name:
	 	     John Fox

													
					
	 Print Name:
	 	 Richard N. Ferry

	 	 	 	 Title:
	 	     President

											
						
	 Title:
	 	 	 	     CEO

	  	 	 	 6 Park Center Court, Suite 212
 Owings Mills, MD 21117
 Phone #: 410-902-0393
 Fax #: 410- 902-0893
	 	 
	 Address:
	 	 	 	     8001 Bent Branch Drive

     Irving, TX 75063

	  	 	 	 

									
	 Fax #:
	 	     972-868-0627

	 	 	 	 	 	 

											
	 Taxpayer I.D.#:
	 	     75-2050538

	 	 	  	 	 	 	 	 

					
	State of Texas                 )
	                                       
  ) TO WIT:	 	 	 	 
	County of Dallas            )	 	 

  
 I HEREBY CERTIFY, that
on this 4th day of April, 2005, before me, a Notary Public of said State, personally appeared Richard N. Ferry, as President and CEO and on behalf of Aegis Communications Group, Inc. [full corporate name of client] known
to me (or satisfactorily proven) to be the person whose name is subscribed to the foregoing instrument and acknowledged that he/she executed the same for the purposes therein contained. 
  
 WITNESS my hand and Notarial Seal. 
  

	
	 /s/  Mary L. Harader

  
 Notary Public

 My Commission Expires:    12/01/07 

 EXHIBIT A 
 TO MASTER FACTORING AGREEMENT 
  
 FORM OF ASSIGNMENT  
  
 See attached.

 ASSIGNMENT NO.             

 
 ASSIGNMENT AND TRANSFER OF ACCOUNTS RECEIVABLE 

 

			
	ASSIGNOR:	 	ASSIGNEE:
		
	
	 	ROCKLAND CREDIT FINANCE LLC
	
	 	6 Park Center Court, Suite 212
	
	 	Owings Mills, MD 21117
	
	 	 

  
 1. Assignment of
Accounts. Pursuant to and subject to the terms and conditions of that certain Master Factoring Agreement between Assignor and Assignee (the “Factoring Agreement”), Assignor hereby sells, assigns and transfers to Assignee all of
its right, title and interest in and to the Accounts arising from the invoices identified in Schedule A . 
  
 2. Advance Payment: Assignor hereby acknowledges and confirms the payment by Assignee and the receipt by Assignor of the Advance Payment shown on
Schedule A. 
  
 3. Representations and Warranties.
Assignor hereby confirms, represents and warrants to Assignee that all representations and warranties made by Assignor to Assignee in the Factoring Agreement are true and correct in all respects on Effective Date of this Assignment and that no
Default exists under the Factoring Agreement on Effective Date. 
  
 4. Effective Date. The effective date of the transfer of the Assigned accounts pursuant to this Assignment (the “Effective Date”) shall be the date set forth below as the effective date of Assignee’s acceptance.

  
 5. Defined Terms. Capitalized terms used herein and not
defined herein shall have the respective meanings ascribed to such terms in the Factoring Agreement. 
  
 IN WITNESS WHEREOF, the parties have executed this Assignment intending to be legally bound as of the Effective Date. 
  

									
	Assignor	 	 	 	ROCKLAND CREDIT FINANCE LLC
				
	
	 	 	 	 	 	 
	[full corporate name of Assignor]	 	 	 	 By

	 By

	 	 	 	 Name:

	[signature of authorized officer]	 	 	 	 Title:

			
	 Print Name:

	 	 	 	 Effective Date of Acceptance:

			
	 Title:

	 	 	 	 

 SCHEDULE A 
 TO ASSIGNMENT AND TRANSFER OF ACCOUNTS RECEIVABLE 
  

	
	 Assignor:

	 Assignment #:

	 Effective Date:

  
 ASSIGNED ACCOUNTS

  
 The Account(s) identified below and on the invoices, contracts and/or
other evidence thereof attached hereto, if any, is/are being sold, assigned and transferred by Assignor to ROCKLAND CREDIT FINANCE LLC pursuant to the foregoing Assignment. 
  

												
	 ACCOUNT DEBTOR
 (CUSTOMER)

	  	INVOICE
NO.

	  	 INVOICE
 DATE

	  	P.O./CONTRACT
NO.

	 	 NET FACE
 AMOUNT ($)

	  	TERMS OF SALE

	 American Express
	  	 	  	 	  	 	 	 	 	  	 
	 AT&T Corp.
	  	 	  	 	  	 	 	 	 	  	 
	 BellSouth Telecommunications, Inc.
	  	 	  	 	  	 	 	 	 	  	 
	 Birch Telecom, Inc.
	  	 	  	 	  	 	 	 	 	  	 
	 Blockbuster Entertainment Group
	  	 	  	 	  	 	 	 	 	  	 
	 Century Warranty Services
	  	 	  	 	  	 	 	 	 	  	 
	 Cingular Wireless
	  	 	  	 	  	 	 	 	 	  	 
	 Comcast Cable Communications
	  	 	  	 	  	 	 	 	 	  	 
	 Green Mountain Energy
	  	 	  	 	  	 	 	 	 	  	 
	 Kaiser Permanente
	  	 	  	 	  	 	 	 	 	  	 
	 Qwest Communications
	  	 	  	 	  	 	 	 	 	  	 
	 Time Consumer Marketing
	  	 	  	 	  	 	 	 	 	  	 
	 Trilegiant Corporation
	  	 	  	 	  	 	 	 	 	  	 
	 Western Union
	  	 	  	 	  	 	 	 	 	  	 
	 	  	(A) TOTAL AMOUNT OF THIS ASSIGNMENT:	 	$	                     	  	 
				
	 	  	(B) ADVANCE RATE:     %	 	 	 	  	 
				
	 	  	(C) TOTAL ADVANCE REQUESTED (LINE A X LINE B): $

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