About the SIGTERM: Ask the guy which shell he uses- something obscure or outdated?
select is a kernel call. If it generates that signal, it's the kernels fault (this is not POSIX behavior to generate SIGTERM) but the shell might throw a wrench in somewhere. This interrupted kernel call should not generate a signal, halting the program should- are you sure you're looking at the right place? Reduce the program to minimum size to reproduce the problem. Consider complaining to Sun or the maker of the shell. For far easier and more dependable way to deal with CTRL-C, use
Curses instead of catching the signal. If you set it up correctly, signal use won't even be warranted, which is the better of the cases in Perl. Good luck!
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