STARTEK, INC.
2014 EXECUTIVE INCENTIVE PLAN

1.0
PURPOSE

1.1
The 2014 Executive Incentive Bonus Plan (“Plan”) is established to incent and
reward eligible Participants (defined in Section 2.3) for performance towards
achieving defined Business Targets and Individual Targets for the current fiscal
year.

2.0
DEFINITIONS

2.1
“Company” means StarTek, Inc. and its wholly owned operating subsidiaries.

2.2
“Compensation Committee” means the compensation committee of the board of
directors of StarTek, Inc.

2.3
“Participant” means the Senior Leadership Team consisting of the CEO and the
direct reports to the CEO.

2.4
“Plan Year” means January 1, 2014 through December 31, 2014, inclusive.

2.5
“Business Targets” are the measurements of the Company’s performance established
for the Plan Year by the Company’s executive management and Compensation
Committee as described in Section 4.1(a)(i) below.

2.6
“Individual Targets” are the specific and measurable goals established for a
Participant for the Plan Year as described in Section 4.1(b)(i) below.

2.7
“Incentive Eligibility” is a percentage that is determined by a Participant’s
position level, as shown in Appendix C.

(a)
“Individual Targets Eligibility” is a percentage that is calculated by
multiplying a Participant’s Bonus Eligibility by the applicable percentage for
Individual Targets listed in Appendix B.

(b)
“Business Targets Eligibility” is a percentage that is calculated by multiplying
a Participant’s Bonus Eligibility by the applicable Business Target percentage
listed in Appendix B.

2.8
“Business Targets Achievement” is the percentage by which Business Targets are
achieved as determined by the applicable table in Appendix A.

2.9
“Individual Targets Achievement” is the percentage by which a Participant’s
Individual Targets are achieved as determined by the process described in
Section 4.1(b).

2.10
“Base Salary Earnings” is the amount of gross base salary earned by a
Participant during the Plan Year for which an incentive award is calculated.

--------------------------------------------------------------------------------

3.0
PARTICIPATION ELIGIBILITY

3.1
Job Level: See eligibility list for 2014 in Appendix C.

3.2
Entrance Date: Participants must be classified in an eligible position on or
before October 1, 2014 to participate in the 2014 Executive Annual Incentive
Plan.

3.3
New Hires/Promotions: Eligibility for new hires or promotions in an eligible
position begins the first day of the month following hire or promotion date. New
Hires or promotions after October 1, 2014 will be eligible to participate in the
plan beginning January 1.

4.0
MEASUREMENT CRITERION

4.1
Incentive earnings under the Plan are based on two measures, Business Targets
and Individual Targets. The percentage weighting of each of the two measures for
purposes of bonus calculation varies by position level per Appendix B.

(a)
Business Targets:

(i)
The Business Targets are established for the Plan Year by the Company’s
Compensation Committee. Payout for achieving Business Targets is scaled
depending on the Company’s performance during the Plan Year versus the Business
Targets per the matrix in Appendix A. Business Targets are based on revenue and
EBITDA for the Company.

(ii)
Business Target Achievement must reach at least the minimum threshold per the
payout matrix in Appendix A to earn any payout based on achieving Business
Targets to be earned; otherwise the payout is zero.

(b)
Individual Targets:

(i)
For each Participant, specific and measurable individual goals are established
for the Plan Year (“Individual Targets”).

(ii)
Payout for the Individual Targets is from 0% to 100% of the Individual Target
Eligibility, depending on the percentage achievement of Individual Targets.

--------------------------------------------------------------------------------

5.0
PAYMENT FROM THE PLAN

5.1
Incentive awards (if any) are earned after the 4th quarter close of the
Company’s financial books. Earned incentive awards are subject to approval by
the Company’s Compensation Committee.

5.2
Incentives earned for the Plan Year are paid as soon as administratively
possible after approval in the following calendar year.

5.3
The amount of a Participant’s earned incentive award is the greater of the
amounts as calculated from paragraphs (a) and (b) below. For the avoidance of
doubt, only the amount as calculated under either (a) or (b) will be paid, but
not both.

(a)
The amount of a Participant’s Individual incentive payout, if any, equals the
product of the Participant’s Base Salary Earnings, the Participant’s Individual
Target Eligibility and the Participant’s Individual Targets Achievement.

(b)
The amount of a Participant’s Business Target incentive payout, if any, equals
the product of the Participant’s Base Salary Earnings, the Participant’s
Individual Target Eligibility and the Participant’s Business Targets
Achievement.

5.4
Incentive payout, if any, is made to a Participant as a lump sum, less required
payroll taxes and withholdings. Participants have the option to have their
incentive bonus award paid out in stock or a combination of stock and/or cash.

5.5
In order to earn an incentive payment from the Plan, a Participant must also be
in “active” status on the payroll of the Company or one of its wholly-owned
operating subsidiaries at the time the incentive s payments are made unless
otherwise provided in any written contract with the Participant. (See
Partial-Year Participant Eligibility 6.2.b)

6.0
PARTIAL-YEAR PARTICIPANT ELIGIBILITY

6.1
An employee who becomes a Participant during the Plan Year may participate in
the Plan on a pro rata basis. The amount of base salary earned by such employee
during the Plan year after first becoming a Participant shall be the base salary
earnings used to calculate any incentive payments.

6.2
If a Participant’s employment with the Company or any of its wholly-owned
operating subsidiaries terminates during the Plan Year then (s)he ceases to be a
Participant on the date employment is terminated. In this event, an incentive
will neither be earned nor paid unless otherwise provided in any written
contract with the Participant.

--------------------------------------------------------------------------------

(c)
If a Participant changes his or her position within the Company or any of its
wholly-owned operating subsidiaries during the Plan Year such that (s)he is no
longer a Participant, then (s)he ceases to be a Participant on the date of such
change, in which case a prorated bonus would be earned through the date of such
change, and be subject to Section 5.0.

(d)
If a Participant is terminated from the Company or any of its wholly-owned
operating subsidiaries before the end of the Plan Year or before earned
incentive payments are made due to a Position Elimination as a result of a
Change in Control of the Company, any earned incentive awards will be paid on a
pro rata basis. Such payment will be paid in accordance with the same timeline
as other Plan Participants are paid.

Participants on approved paid disability leave of absence during the Plan Year
are not eligible to earn incentive awards for the period of time to the nearest
whole month of the disability leave of absence. Earned awards during the Plan
Year will be prorated for the number of whole months of active employment and
participation in the Plan.
7.0
PROMOTIONS WITHIN THE PLAN YEAR

7.1
Promotions during the Plan Year will be handled as follows:

(e)
For the Business Targets and Individual Targets, bonus calculations will be
prorated based on the period of time (rounded to the nearest whole month) in
each position level and the prorated salary for the same period of time for each
position held.    

8.0
PLAN APPROVALS

8.1
This Plan is subject to approval by the Compensation Committee and is effective
only for the Plan Year noted above. There is no assurance that this Plan will be
renewed or any similar plan will be adopted in the future.

9.0
CHANGEABILITY

9.1
The Compensation Committee reserves the right to change, suspend or eliminate
this Plan, in whole or in part, at any time, with or without notice to
Participants.

FORFEITURE OF AWARDS:
Any Participant who may have earned an incentive under the Plan but whose
overall performance does not meet or exceed performance expectations at the time
of payment of the earned incentive awards is not eligible to receive payment
under the Plan.

--------------------------------------------------------------------------------

Any Participant who manipulates or attempts to manipulate the Plan or any
components of performance measurements for personal benefit will forfeit any
potentially earned awards and is subject to disciplinary action up to and
including termination of employment.

APPROVALS:

                                            
    

Printed Name:___________________________________Date:__________________________

By my signature below, I understand and accept the terms of this 2014 Executive
Incentive Plan:

________________________________________________________________________

   

--------------------------------------------------------------------------------

APPENDIX A:
BUSINESS TARTEGTS MATRIX
StarTek, Inc. Executive Incentive Plan
For Year Ended December 31, 2014

2014
 
2014
Revenue (millions)
 
Adjusted EBITDA (millions)
Target
% Achieved
% Payout
 
Target
% Achieved
% Payout
 
<90%
0%
 
 
<85%
0%
$241.4
90%
70%
 
$8.6
85%
70%
$246.7
92%
75%
 
$8.8
88%
75%
$252.1
94%
80%
 
$9.1
90%
80%
$257.5
96%
85%
 
$9.3
93%
85%
$262.8
98%
90%
 
$9.6
95%
90%
$268.2
100%
100%
 
$9.8
98%
95%
$274.9
103%
103%
 
$10.1
100%
100%
$281.6
105%
105%
 
$10.4
103%
103%
$288.3
108%
108%
 
$10.6
105%
105%
$295.0
110%
110%
 
$10.9
108%
108%
$301.7
113%
113%
 
$11.1
110%
110%
$308.4
115%
115%
 
$11.4
113%
113%
$315.1
118%
118%
 
$11.6
115%
115%
$321.8
120%
120%
 
$11.9
118%
118%
$328.5
123%
123%
 
$12.1
120%
120%
$335.3
125%
125%
 
$12.4
123%
123%
 
≥125%
125%
 
$12.6
125%
125%
 
 
 
 
 
≥125%
125%

--------------------------------------------------------------------------------

Appendix B
2014 STARTEK INC. EXECUTIVE INCENTIVE PLAN ELIGIBLITY MATRIX
Senior Leadership Team Targets
 LEVEL
Maximum % of Base
Salary
Business Targets
 
 
Objectives 1-3 **
EBITDA
Revenue
President and CEO
100%
25%
30%
45%
 
 
 
 
 
SVP Chief Financial Officer
SVP Global Operations
60%
25%
30%
45%
 
 
 
 
 
 SVP Information Services
SVP Global Human Resources
50%
25%
30%
45%

**     Objective 1: Complete IT Project & Realize Budgeted cost per average
active seat (10%)
•
Results/Impact/How Measured: Achieve $218 (or lower) for cost per active seat.

Objective 2: Sell 7 new logos, including 3 Health clients. Total of $15M booked
ACV (10%)
•
Results/Impact/How Measured :7 new logos of which 3 will be healthcare. Total of
7 booked ACV of at least $15M.

Objective 3: Retain all new revenue for Core business (5%)
•
Results/Impact/How Measured: Core revenue is equal to or greater than budget of
$239M.

--------------------------------------------------------------------------------

Appendix C
2014 STARTEK INC. EXECUTIVE INCENTIVE PLAN ELIGIBLITY PARTICIPANTS
2014 Executive Incentive Bonus Plan Eligibility List
EE #
Lawson Name
Lawson Title
Lawson Hire Date
2014 EIB Plan Entry Date
1008531
Carlson, Chad A.
President and CEO
6/14/2010
1/1/2014
 
 
 
 
 
10716
Bullington-Weaver, Lisa A.
SVP Chief Financial Officer
10/31/2011
1/1/2014
3444
Leach, Rodney A.
SVP GM Global Operations
12/7/2010
1/1/2014
20119542
Martino, Peter F.
SVP GM Global Operations
1/20/2014
2/1/2014
 
 
 
 
 
15554
Hain, Patricia J.
SVP Information Services
4/30/2012
1/1/2014
20107733
Kirksey, Jaymes
SVP Global Human Resources
2/4/2013
1/1/2014