Document:

Exhibit 10.1

 

September 10, 2002

 

Tim Coffey

The Bank of Nova Scotia

Attn: Acquisition Finance

1 Liberty Plaza, 25th FL

New York, NY 10006

 

Dear Tim:

 

At the request of Aegis Communications Group,

Inc. and in regards to our Third Amended and Restated Credit Agreement, dated

December 10, 1999 (together with all amendments and other modifications, if

any, from time to time thereafter made thereto, the “Credit Agreement”), please

use this letter as authorization to reduce our available line of credit from $35,000,000

to $30,000,000, effective September 15, 2002.

 

Please feel free to call me at 678-443-6512

if you have any questions.

 

Best regards,

 

/s/ Michael J. Graham

 

Michael J. Graham

Executive Vice President—Corporate

Development and Chief Financial Officer

Aegis Communications Group, Inc.

tmv

 

cc:   Paul Keller, Aegis Communications Group, Inc.

Todd Vines, Aegis Communications Group, Inc.Exhibit 10.2

	

  

  	

  Michael J. Graham

  Executive Vice President

  Corporate

  Secretary

  

 

July 22, 2002

 

Mr. Patrick W. Gross

AMS Building

4050 Legato Road

Fairfax, VA 22033-4033

 

 

Dear Pat:

 

In my role as Corporate Secretary, on behalf

of the Board of Directors of Aegis Communications Group, Inc. I am pleased to

present you with an offer to join the Board as a director and Chairman. This

offer is subject to your acceptance and to the ratification by the Board of

Directors via an authorized board resolution. The Board would like to offer the

following to you:

 

Title: Director and

Chairman of the Board of Directors, Member of the Operating Committee

 

Description

of the Role: The primary responsibilities of this position

shall include:

•      Chairing the Board

•      Coaching, mentoring, and monitoring the

Company’s executive management team

•      Assisting in the formulation and execution

of corporate strategy

•      Selective participation in key sales calls

and other high-level client interaction

 

Time

Commitments: The Board recognizes that this position is a

non-executive role and does not require your full time commitment. However, the

Board wishes to ensure that you will be able to dedicate sufficient time to

fulfill the expectations of the Chairman role. To that end, we expect the minimum

time commitments would include:

•      Attendance at four regular scheduled board

meetings per year, one annual meeting of shareholders, and board committee

meetings as appropriate

•      Participation in regularly scheduled

Operating Committee meetings and conference calls

•      A monthly meeting with the executive team

•      Certain top-to-top sales calls with key

clients

•      As part of your transition into the role,

approximately five days per month will be dedicated to Aegis through December

31, 2002. In 2003, mutually agreed upon time commitments will be established.

 

Compensation: Due to the

requirements of this position, we are compensating you for your time as

follows:

•      From June 15, 2002 to December 31, 2002, a

monthly retainer of $12,500 (pro rata for June 2002), partially reflecting your

investment of additional time to become oriented with the Company

•      The monthly retainer amount will be

revisited and possibly adjusted downward as of January 2003, to be mutually

determined between you and the Board by November 1, 2002 based on expected time

commitments going forward

 

Equity in

the Company: To fully align you in the role as Chairman with

the interest of our shareholders, we are offering you 500,000 options to

purchase common shares of the company’s stock, subject to the company’s 1998

Stock Option Plan as Amended. The options will vest pro-ratably over a

three-year period with a strike price equal to the closing price of the

Company’s common stock on the date of grant by the Compensation Committee

(anticipated as August 8, 2002). The options would fully vest upon a change of

control or upon your removal from the Board without cause. Similar to the

executive management of the Company, future grants will be considered by the

board and Compensation Committee in the ordinary course of business.

 

Other: You will be

reimbursed for all reasonable out of pocket expenses in accordance with the

Company’s travel policy. It is understood that your travel will generally be to

and from Washington, DC or Seattle, Washington. You will be provided with an

indemnity agreement for your role as a director as provided to all directors.

 

Pat, we are pleased to welcome you to Aegis

and look forward to working with you to further grow our company.

 

Sincerely,

 

/s/ Michael J. Graham

Michael J. Graham

 

Accepted:

 

/s/ Patrick W. Gross

Patrick W. Gross

 

Date:Exhibit 10-21

 

AMENDMENT

NO. 4 TO AMENDED AND RESTATED CREDIT AGREEMENT

 

This Amendment (this “Amendment”) is entered

into as of October 18, 2002, by and among The Navigators Group, Inc., a

Delaware corporation (the “Borrower”), Bank One, NA (formerly known as

The First National Bank of Chicago), individually and as agent (“Agent”),

and the other financial institutions signatory hereto.

 

RECITALS

 

A.            The Borrower, the Agent and the Lenders are party to

that certain Amended and Restated Credit Agreement dated as of

December 21, 1998, as amended by Amendment No. 1 to Amended and

Restated Credit Agreement dated as of March 28, 2000, Amendment No. 2

to Amended and Restated Credit Agreement dated as of September 20, 2000

and Amendment No. 3 to Amended and Restated Credit Agreement dated as of

December 31, 2001 (as so amended, the “Credit Agreement”).  Unless otherwise specified herein,

capitalized terms used in this Amendment shall have the meanings ascribed to

them by the Credit Agreement.

 

B.            The Borrower, the Agent and the undersigned Lenders

wish to amend the Credit Agreement on the terms and conditions set forth below.

 

NOW, THEREFORE, in

consideration of the mutual execution hereof and other good and valuable

consideration, the parties hereto agree as follows:

 

1.             Amendments

to Credit Agreement.  Upon the

“Effective Date” (as defined below), the Credit Agreement shall be amended as

follows:

 

(a)           Article

I of the Credit Agreement shall be amended by deleting the definition of

“Deferred Policy Acquisition Costs” in its entirety.

 

(b)           The

definition of “Consolidated Total Intangible Assets” in Article I of the Credit

Agreement shall be amended and restated in its entirety to read as follows:

 

“Consolidated

Total Intangible Assets” means, at any time, the total intangible assets of the

Borrower and its Consolidated Subsidiaries calculated on a consolidated basis

as of such time including, but not limited to, goodwill, patents, trademarks,

tradenames, copyrights and franchises and excluding deferred policy acquisition

costs.

 

(c)           The

definition of “Consolidated Tangible Net Worth” in Article I of the Credit

Agreement shall be amended and restated in its entirety to read as follows:

 

“Consolidated

Tangible Net Worth” means the excess of (a) Consolidated Total Tangible Assets

over (b) Consolidated Total Liabilities, excluding,

 

 

however,

for the purposes of Section 7.24.1, the effect of any unrealized

gain or loss reported under Statement of Financial Accounting Standards No.

115.

 

(d)           The

definition of “Letter of Credit Termination Date” in Article I of the

Credit Agreement shall be amended and restated in its entirety to read as

follows:

 

“Letter

of Credit Termination Date” means November 19, 2003 or any later date as

may be specified as the Letter of Credit Termination Date in accordance with Section 3.10

or any earlier date on which the Letter of Credit Commitment is reduced to zero

or otherwise terminated pursuant to the terms thereof.

 

(e)           Section

2.7(a) of the Credit Agreement shall be amended and restated in its entirety to

read as follows:

 

(a) The Aggregate Revolving Credit Commitment shall be

automatically and permanently reduced by the following amounts on the following

dates (such reductions to take place regardless of any prior reductions of the

Aggregate Revolving Credit Commitment pursuant to Section 2.7(b)

but to be reduced in order of maturity by the amount of any prior reductions of

the Aggregate Revolving Credit Commitment pursuant to Section 2.4(b)):

 

	

  Date

  	

   

  	

  Reduction

  Amount

  	

   

  
	

  April 1, 2003

  	

   

  	

  $

  	

  1,750,000

  	

   

  
	

  July 1, 2003

  	

   

  	

  $

  	

  1,750,000

  	

   

  
	

  October 1, 2003

  	

   

  	

  $

  	

  2,000,000

  	

   

  
	

  January 1, 2004

  	

   

  	

  $

  	

  2,000,000

  	

   

  
	

  April 1, 2004

  	

   

  	

  $

  	

  2,250,000

  	

   

  
	

  July 1, 2004

  	

   

  	

  $

  	

  2,250,000

  	

   

  
	

  Revolving Credit

  Termination Date

  	

   

  	

  $

  	

  2,500,000

  	

   

  

 

(f)            Section

7.15 of the Credit Agreement shall be amended and restated in its entirety to

read as follows:

 

7.15.        Contingent

Obligations.  The Borrower will not,

nor will it permit any Subsidiary to, make or suffer to exist any Contingent

Obligation (including, without limitation, any Contingent Obligation with

respect to the obligations of a Subsidiary), except (a) by endorsement of

instruments for deposit or collection in the ordinary course of business, (b)

Contingent Obligations in respect of Letters of Credit; provided, however,

that the Borrower may guarantee (i) the obligations of any Person that is

its or its Subsidiary’s employee so long as the aggregate amount of all such

guaranteed obligations, taken together with the aggregate amount of any and all

loans to such Persons by the Borrower in accordance with Section 7.14

outstanding at any time do not in the aggregate exceed $250,000, (ii) the

obligations of any Subsidiary over the initial contracted lease term under

leases of Property entered into in the ordinary course of business in an

aggregate

 

2

 

amount not to exceed $5,000,000, (iii) the

obligations of any Subsidiary under office space leases in existence on October

18, 2002 and replacements thereof that are on substantially similar terms and

conditions as the lease being replaced, and (iv) Contingent Obligations in

respect of letters of credit issued by Munichener Ruckversicherung

Aktiengesellschaft (d/b/a Munich) in an aggregate amount not to exceed

£10,625,000.

 

(g)           Section

7.24.1 of the Credit Agreement shall be amended and restated in its entirety to

read as follows:

 

7.24.1      Minimum

Consolidated Tangible Net Worth.  The Borrower will at all times maintain

Consolidated Tangible Net Worth of not less than the sum of

(a) $128,000,000, plus (b) 75% of the cumulative positive

Consolidated Net Income, if any, earned from October 1, 2002 to the date of

calculation, plus (c) 75% of the Net Available Proceeds of any

equity issuance in excess of $1,000,000 (including any capital contribution to

surplus of the Borrower in respect of which no additional shares are issued),

if any, made on or after October 1, 2002 by the Borrower after the Closing

Date.

 

(h)           Section

7.24.2 of the Credit Agreement shall be amended and restated in its entirety to

read as follows:

 

7.24.2      Minimum

Statutory Surplus. 

The Borrower will cause the Significant Insurance Subsidiaries to

maintain an aggregate Statutory Surplus of not less than (i) $110,272,875

in each Fiscal Quarter ending on or before December 31, 2003, and

(ii) at all times thereafter, the sum of (a) $110,272,875, plus

(b) 50% of the cumulative positive aggregate Statutory Net Income, if any,

earned by the Significant Insurance Subsidiaries from January 1, 2004 to

the date of calculation, plus (c) 75% of the Net Available Proceeds

of any equity issuance (including any capital contribution to surplus of any

Significant Insurance Subsidiary in respect of which no additional shares are

issued) by any Significant Insurance Subsidiary after the Closing Date.

 

(i)            The

Pricing Schedule shall be deleted in its entirety, and the Pricing Schedule

attached hereto and made a part hereof shall be substituted in its place.

 

(j)            Schedule

I to the Credit Agreement shall be deleted in its entirety, and Schedule I

attached hereto and made a part hereof shall be substituted in its place.

 

2.             Representations

and Warranties of the Borrower.  The

Borrower represents and warrants that:

 

(a)           The execution, delivery

and performance by the Borrower of this Amendment have been duly authorized by

all necessary corporate action and that this Amendment is a legal, valid and

binding obligation of the Borrower enforceable against the Borrower in

accordance with its terms, except as the enforcement thereof may be subject to  the effect of any applicable

 

3

 

bankruptcy, insolvency, reorganization, moratorium or similar law

affecting creditors’ rights generally;

 

(b)           Each of the

representations and warranties contained in the Credit Agreement is true and

correct in all material respects on and as of the date hereof as if made on the

date hereof, except to the extent any such representation or warranty is stated

to relate solely to an earlier date, in which case such representation or

warranty shall have been true and correct on and as of such earlier date;

 

(c)           After giving effect to

this Amendment, no Default or Unmatured Default has occurred and is continuing.

 

3.             Effective Date.  Section 1 of this Amendment shall not

become effective unless and until the Borrower has furnished the following to

the Agent with sufficient copies for the Lenders and the other conditions set

forth below have been satisfied:

 

(a)           Amendment.  A copy of this Amendment, executed by the

Borrower, the Agent and the Lenders.

 

(b)           Good

Standing Certificate.  A certificate

of good standing for the Borrower, certified by the appropriate governmental

officer in its jurisdiction of incorporation.

 

(c)           Officer’s

Certificate.  A certificate, signed

by an Authorized Officer of the Borrower, stating that:  (i) on the date hereof no Default or

Unmatured Default has occurred and is continuing; and (ii) each of the

representations and warranties set forth in Article VI of the Credit

Agreement is true and correct on and as of the Effective Date and (iii) except

as set forth therein, no amendments or modifications have been made to the

Borrower’s articles of incorporation or by-laws since December 21, 1998.

 

(d)           Amendment

Fee.  Receipt by the Agent for the

benefit of the Lenders of an amendment fee in an amount equal to fifteen (15)

basis points on each such Lender’s Revolving Credit Commitment and Letter of

Credit Participation Amount on the date hereof after giving effect to this

Amendment, which fee shall be deemed fully earned and non-refundable on the date

hereof (the “Amendment Fee”).

 

(e)           Other.  Such other documents as the Agent, any

Lender or their counsel may have reasonably requested.

 

The date on which the

foregoing conditions have been satisfied is the “Effective Date.”

 

4.             Reference

to and Effect Upon the Credit Agreement.

 

(a)           Except as specifically

amended above, the Credit Agreement and the other Loan Documents shall remain

in full force and effect and are hereby ratified and confirmed.

 

(b)           The execution, delivery

and effectiveness of this Amendment shall not operate as a waiver of any right,

power or remedy of the Agent or any Lender under the Credit Agreement

 

4

 

or any Loan Document, nor constitute a waiver of any

provision of the Credit Agreement or any Loan Document, except as specifically

set forth herein.  Upon the

effectiveness of this Amendment, each reference in the Credit Agreement to

“this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import

shall mean and be a reference to the Credit Agreement as amended hereby.

 

5.             Costs

and Expenses.

 

(a)           The Borrower hereby

affirms its obligation under Section 10.7 of the Credit Agreement to reimburse

the Agent for all reasonable costs, internal charges and out-of-pocket expenses

paid or incurred by the Agent in connection with the preparation, negotiation,

execution and delivery of this Amendment, including but not limited to the

attorneys’ fees and time charges of attorneys for the Agent with respect

thereto.

 

(b)           The Borrower hereby

agrees that on the Effective Date, the Borrower shall pay the Arranger, the

Agent and the Lenders the Amendment Fee, which Amendment Fee shall be deemed

fully earned and non-refundable on the date hereof.

 

6.             GOVERNING

LAW.  THIS AMENDMENT SHALL BE GOVERNED

BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS

OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS BUT GIVING EFFECT TO FEDERAL LAWS

APPLICABLE TO NATIONAL BANKS.

 

7.             Headings.  Section headings in this Amendment are

included herein for convenience of reference only and shall not constitute a

part of this Amendment for any other purposes.

 

8.             Counterparts.  This Amendment may be executed in any number

of counterparts, each of which when so executed shall be deemed an original but

all such counterparts shall constitute one and the same instrument.

 

[signature pages

follow]

 

5

 

IN WITNESS WHEREOF, the parties have executed this

Amendment as of the date and year first above written.

 

	

   

  	

  THE NAVIGATORS

  GROUP, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BANK ONE, NA

  (formerly known as The First National Bank of Chicago), as a Lender and as

  Agent

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROWN BROTHERS

  HARRIMAN & CO., as a Lender and as Co-Agent

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  CREDIT LYONNAIS

  NEW YORK BRANCH, as a Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

   

  

 

S-1

 

	

   

  	

  FLEET NATIONAL

  BANK, as a Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BARCLAYS BANK

  plc, as a Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  LASALLE BANK

  NATIONAL ASSOCIATION, as a Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

   

  

 

S-2

 

PRICING SCHEDULE

 

	

  APPLICABLE

  MARGIN

  	

   

  	

  LEVEL I

  STATUS

  	

   

  	

  LEVEL II

  STATUS

  	

   

  	

  LEVEL III

  STATUS

  	

   

  	

  LEVEL IV

  STATUS

  	

   

  
	

  Eurodollar Rate

  	

   

  	

  0.875

  	

  %

  	

  1.000

  	

  %

  	

  1.250

  	

  %

  	

  1.500

  	

  %

  

 

	

  APPLICABLE FEE

  RATE

  	

   

  	

  LEVEL I

  STATUS

  	

   

  	

  LEVEL II

  STATUS

  	

   

  	

  LEVEL III

  STATUS

  	

   

  	

  LEVEL IV

  STATUS

  	

   

  
	

  Commitment Fee

  	

   

  	

  0.125

  	

  %

  	

  0.150

  	

  %

  	

  0.250

  	

  %

  	

  0.300

  	

  %

  
	

  Letter of Credit Participation Fee

  	

   

  	

  0.875

  	

  %

  	

  1.000

  	

  %

  	

  1.250

  	

  %

  	

  1.500

  	

  %

  

 

For the purposes of this

Schedule, the following terms have the following meanings, subject to the final

paragraph of this Schedule:

 

“Level I Status” exists

at any date if, on such date, the Borrower has an S&P Debt Rating of A- or

better or, if the Borrower does not have an S&P Debt Rating, each of

Navigators and each other Significant Insurance Subsidiary of the Borrower

shall have an S&P Financial Strength Rating of A+ or better.

 

“Level II Status” exists

at any date if, on such date, the Borrower has not qualified for Level I

Status, and the Borrower has an S&P Debt Rating of BBB or better or, if the

Borrower does not have an S&P Debt Rating, each of Navigators and each

other Significant Insurance Subsidiary of the Borrower shall have an S&P

Financial Strength Rating of A or better.

 

“Level III Status” exists

at any date if, on such date, the Borrower has not qualified for Level I

Status or Level II Status, and the Borrower has an S&P Debt Rating of

BBB- or better or, if the Borrower does not have an S&P Debt Rating, each

of Navigators and each other Significant Insurance Subsidiary of the Borrower

shall have an S&P Financial Strength Rating of A- or better.

 

“Level IV Status” exists

at any date if, on such date, the Borrower has not qualified for Level I

Status, Level II Status or Level III Status.

 

“S&P” means Standard

and Poor’s Rating Services, a division of The McGraw Hill Companies, Inc.

 

“S&P Debt Rating”

means, at any time, the rating issued by S&P with respect to the Borrower’s

senior unsecured and unguaranteed long-term debt.

 

“S&P Financial

Strength Rating” means, at any time, the rating issued by S&P with respect

to the financial strength of Navigators and each other Significant Insurance

Subsidiary of the Borrower.

 

 

“Status” means either

Level I Status, Level II Status, Level III Status or Level IV Status.

 

The Applicable Margin,

the Applicable Commitment Fee Rate and the Applicable Letter of Credit

Participation Fee Rate shall be determined in accordance with the foregoing table

based on the Borrower’s Status as determined from its then-current S&P Debt

Rating or, if the Borrower does not have an S&P Debt Rating, the

then-current S&P Financial Strength Rating of Navigators and each other

Significant Insurance Subsidiary of the Borrower.  The credit rating in effect on any date for the purposes of this

Schedule is that in effect at the close of business on such date.  If at any time the Borrower has no S&P

Debt Rating and no Significant Insurance Subsidiary of the Borrower has an

S&P Financial Strength Rating, Level IV Status shall exist.

 

Notwithstanding anything

to the contrary contained in this Pricing Schedule, until the later of

(a) October 1, 2003 and (b) the date on which the aggregate Statutory

Surplus of all Significant Insurance Subsidiaries, as reflected in the most

recent annual or quarterly financial statements of the Borrower delivered

pursuant to Section 7.1(a) or (b), is equal to or greater

than $120,000,000, Level III Status (or Level IV Status, if applicable) shall

exist.

 

 

Schedule I

 

COMMITMENTS

 

	

  Lender

  	

   

  	

  Revolving Credit

  Commitment

  	

   

  	

  Letter of Credit

  Commitment

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Bank One, NA

  	

   

  	

  $

  	

  3,326,470.66

  	

   

  	

  $

  	

  15,117,647.06

  	

   

  
	

  Brown Brothers Harriman & Co.

  	

   

  	

  $

  	

  1,705,882.33

  	

   

  	

  $

  	

  6,470,588.24

  	

   

  
	

  Credit Lyonnais New York Branch

  	

   

  	

  $

  	

  3,070,588.21

  	

   

  	

  $

  	

  0

  	

   

  
	

  Fleet National Bank

  	

   

  	

  $

  	

  3,070,588.21

  	

   

  	

  $

  	

  6,647,058.82

  	

   

  
	

  Barclays Bank plc

  	

   

  	

  $

  	

  3,326,470.59

  	

   

  	

  $

  	

  15,117,647.06

  	

   

  
	

  LaSalle Bank National Association

  	

   

  	

  $

  	

  0

  	

   

  	

  $

  	

  11,647,058.82

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Total Commitments:

  	

   

  	

  $

  	

  14,500,000

  	

   

  	

  $

  	

  55,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]