Exhibit 10
AMENDMENT NO. 2 TO RECEIVABLES
PURCHASE AGREEMENT
THIS AMENDMENT NO. 2 TO
RECEIVABLES PURCHASE AGREEMENT, dated as of September 21, 2004 (this
“Amendment” ), is by and among Convergys
Funding Corporation (the “Seller” ),
Convergys Corporation, as initial servicer (the
“Servicer” ), Falcon Asset Securitization
Corporation ( “Falcon” ), Fifth Third
Bank, an Ohio banking corporation ( “Fifth
Third” ), and Bank One, NA, a national banking
association having its main office in Chicago, Illinois, as
successor by merger to Bank One, Michigan (together with Fifth
Third and Falcon, the “Purchasers” ), and
as “Falcon Agent” and
“Administrative Agent” .
W I T N E S S E T H
:
WHEREAS,
the Seller, the Servicer, the
Purchasers, the Falcon Agent and the Administrative Agent are
parties to that certain Amended and Restated Receivables Purchase
Agreement dated as of November 20, 2003 (as heretofore amended, the
“Agreement” ); and
WHEREAS,
the parties wish to amend the
Agreement as hereinafter forth;
NOW, THEREFORE,
in consideration of the premises
herein contained, and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the parties hereto
hereby agree as follows:
1. Defined Terms .
Capitalized terms used herein and not otherwise defined shall have
their meanings as attributed to such terms in the
Agreement.
2. Amendments . The
definitions in the Agreement of the following terms are hereby
amended and restated in their entirety to read, respectively, as
follows:
“ Concentration Limit
” means, at any time:
(i) for all governmental
subdivisions and agencies of the United States of America, an
aggregate of 4.0% of Eligible Receivables; and
(ii) for any other Obligor and its
Affiliates, considered as if they were one and the same Obligor,
4.2% of Eligible Receivables, or such other amount (a “
Special Concentration Limit ”) for such Obligor and
its Affiliates as may be designated by the Falcon Agent and Fifth
Third from time to time; provided that any Agent, the
Required Financial Institutions or Fifth Third may, upon not less
than three Business Days’ notice to Seller, cancel any
Special Concentration Limit.
“ Dilution Reserve
” means, on any date, the greater of (i) 5% of the Net
Receivables Balance, and (ii) the amount determined pursuant to the
following formula:
{ [ (2 x ED) + ( (DS - ED) x (DS/ED) ) ] x DHR }
x NRB
where:
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ED
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=
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the Expected Dilution;
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DS
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=
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the Dilution Spike;
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DR
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=
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the Dilution Ratio;
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DHR
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=
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the Dilution Horizon Ratio; and
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NRB
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=
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the Net Receivables Balance.
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“ Dilutions ”
means, at any time before or after the date of the Agreement, the
sum (without duplication) of (a) the aggregate amount of reductions
or cancellations described in clause (i) of the definition of
“ Deemed Collections ”, plus (b) the
positive difference, if any, between the total credits taken
against the accrual accounts during the current month and the
balance of the accrual accounts at the beginning of the current
month pursuant to clause (A) of the proviso at the end of the
definition of “ Eligible Receivables ,”
plus (c) any credits that are granted for Receivables
originated prior to an increase to the accrual accounts referenced
in clause (A) of the proviso at the end of the definition of
Eligible Receivables.
“ Eligible Receivable
” means, at any time, a Receivable:
(i) the Obligor of which (A) is not
an Affiliate of any of the parties hereto, and (B) is not (1) the
State of Florida and all governmental subdivisions and agencies
thereof, or (2) any other government or a governmental subdivision
or agency other than one described in clause (i) of the definition
of “Concentration Limit”,
(ii) the Obligor of which is not the
Obligor of (A) any Charged-Off Receivable (other than as described
in clause (v) of the definition of Charge-Off Receivable) or (B)
Receivables more than 25% of which are Delinquent Receivables;
provided , however , that there will be excluded from
Delinquent Receivables for purposes of this clause (ii) Receivables
owing from the 4 largest Obligors which are more than 60 days past
the original Invoice date therefor solely because of a bona
fide dispute, as determined by the Servicer with the consent of
the Falcon Agent and Fifth Third,
(iii) which is not a Charged-Off
Receivable, a Defaulted Receivable or a Delinquent
Receivable,
(iv) which by its terms is due and
payable within 60 days of the original billing date therefor and
has not had its payment terms extended,
(v) which is either evidenced by an
Invoice in substantially the form of one of the form contracts set
forth on Exhibit IX hereto or otherwise approved by the
Falcon Agent and Fifth Third in writing, or if such Receivables an
Unbilled Receivable, has not been booked as an asset of the
applicable Originator (without giving effect to any sale under
the