Form Performance Unit Award Agreement



 Exhibit 10.27.1 to 2006 10-K 
 PERFORMANCE UNIT AWARD 
 UNDER THE PROVISIONS OF 
 THE CONVERGYS CORPORATION 
 1998 LONG
TERM INCENTIVE PLAN, AS AMENDED 
 Pursuant to the provisions of the Convergys Corporation 1998 Long Term Incentive Plan, as amended (the
“Plan”), a copy of which has been delivered to you, the Compensation and Benefits Committee of the Board of Directors of Convergys Corporation (the “Compensation Committee”) grants to you a performance unit award, on and subject
to the terms of the Plan (your “XXXX performance unit award”). The following terms, conditions and restrictions shall govern your XXXX performance unit award. 
 1. Earning and Payout of Award. Subject to and upon the terms, conditions, and restrictions set forth in this Agreement, Convergys Corporation (the “Company”) shall pay you the amount earned in
accordance with the payout schedule provided to you separately (the “Payout Schedule”) as soon as administratively practicable following XXXX (the “Vest Date”) and the date the Compensation Committee determines the extent to
which the performance criteria has been satisfied; provided however that, notwithstanding any other provision of this Agreement to the contrary, to the extent necessary to preserve the available exemption of the award under Section 162(m) of
the Internal Revenue Code, payment of the amount earned under this Agreement will be made as soon as administratively practicable and legally permissible following the termination of your employment. 
 2. Performance Criteria. You shall be entitled to receive a payment under this Agreement based on (a) the Company’s Total Shareholder
Return (“TSR”) over the three consecutive calendar year period ending on the Vest Date (the “performance period”) relative to the Total Shareholder Return of the peer group companies over the performance period and (b) the
Payout Schedule. For purposes of this award, the peer group companies consist of each company (other than the Company) that is in the S&P 500 as of the last trading day of the performance period and was publicly traded as of the trading day
immediately preceding the first day of the performance period. The amount earned will be paid in cash as soon as administratively practicable following the end of the performance period. 
 “TSR” means the rate of stock price appreciation/depreciation plus the reinvestment of dividends and the compounding effect of
dividends paid on reinvested dividends over the term of the performance period. Stock price appreciation/depreciation over the term of the performance period for the Company will be determined by comparing (c) the average close price of the
stock of the Company for each trading day occurring during the calendar quarter ending on the day immediately preceding the start of the performance period to (d) the average close price of the stock of the Company for each trading day
occurring during the calendar quarter ending on the last day of the performance period. Stock price appreciation/depreciation over the term of the performance period for the peer group companies will be determined by comparing the (e) close
price of the stock of the applicable company on the trading day immediately preceding the first day of the performance period to (f) the close price of the stock of the applicable company on the last trading day of the performance period.

 3. Forfeiture of Award. 
  

	 	a.	 Your right to receive a payout pursuant to this Agreement shall be forfeited automatically and without further notice if you cease to be an employee of the 



  

 Page 1 of 4 









	 	 
Company and its affiliates prior to the Vest Date for any reason other than death, disability, retirement or involuntary termination without cause. For
purposes of this Agreement: 


  

	 	(i)	“disability” has the same meaning as in the Company’s long-term disability plan; 

  

	 	(ii)	“retirement” means termination of employment after (I) attaining age 55 and completing at least ten years of service with the Company or any of its subsidiaries or
(II) completing at least thirty years of service with the Company or any of its subsidiaries; and 

  

	 	(iii)	“cause” means a determination by the Company that you have been involved in fraud, misappropriation, embezzlement, commission of a crime or an act of moral turpitude, or
have violated the Code of Business Conduct, recklessly or willfully injured an employee, company property, business, or reputation, or have acted recklessly in the performance of your duties. 

 Your right to receive a payment pursuant to this award shall be forfeited automatically and without further notice if you cease to be an employee of the
Company and its affiliates during the year in which this award is granted to you due to death or involuntary termination without cause. 
  

	 	b.	 If the Company determines that you engaged in any Detrimental Activity during your employment with Convergys Corporation or during the two-year period following the
termination of such employment for any reason, (i) to the extent that you have not yet received a payout under this award, your right to receive a payout under this award shall be forfeited and (ii) to the extent that you have received a
payout under this award within the six-month period immediately preceding the termination of your employment (or, if your employment terminated by reason of your retirement or disability, within the period beginning six months prior to your
termination and ending two years following your termination), the Company, in its sole discretion, may require you to pay back to it the amount you received pursuant to this award. For purposes of this Section 3b, “Detrimental
Activity” shall include: (1) disclosing proprietary, confidential or trade secret information; (2) becoming involved in any business activity in competition with Convergys Corporation in the geographical area where Convergys
Corporation is engaged in such business activity; (3) interfering with Convergys Corporation’s relationships with any person or entity or attempting to divert or change any such relationship to the detriment of Convergys Corporation or the
benefit of any other person or entity; (4) failing to disclose and assign to Convergys Corporation any ideas, inventions, discoveries and other developments conceived by you during your employment, whether or not during working hours, which are
within the scope of or related to Convergys Corporation’s existing or planned business activities; (5) disparaging or acting in any manner which may damage the business of Convergys Corporation or which would adversely affect the goodwill,
reputation or business relationships of Convergys Corporation; (6) inducing any employee of Convergys Corporation 



  

 Page 2 of 4 









	 	 
to terminate his or her employment relationship with Convergys Corporation; or (7) taking or retaining without authorization any property of Convergys
Corporation. Convergys Corporation shall be entitled to set-off against any payment called for under this paragraph any amount otherwise owed to you by the company. Nothing in this Section is intended to supercede or otherwise affect any
Non-Disclosure and Non-Competition agreement or other employment-related agreement between you and Convergys Corporation. References to Convergys Corporation in this paragraph shall include all direct and indirect subsidiaries of Convergys
Corporation. 


  

	 	c.	Your right to receive payout pursuant to this award shall be forfeited to the extent you are permitted to elect and do elect in accordance with applicable rules and procedures to
forfeit and/or surrender your rights hereunder in exchange for a credit to an account maintained for you pursuant to a deferred compensation plan maintained by the Company; provided however that the provisions of paragraph 3.b. shall continue to
apply to Shares issued under any such deferred compensation plan which are attributable to such election. 

 4. Death,
Disability, Retirement, and Involuntary Termination without Cause. 
  

	 	a.	Except as may be otherwise provided under the terms of an employment agreement, if you cease to be an employee of the Company and its affiliates due to death or involuntary
termination without cause after the calendar year in which this award was granted to you but before the Vest Date, your payout under this award will be determined based on the Payout Schedule and the Company’s level of satisfaction of the
performance criteria described in Section 2 over the period beginning XXXX and ending on the last day of the calendar year preceding the calendar year in which your employment terminates. 

  

	 	b.	If you cease to be an employee of the Company and its affiliates due to disability or retirement, this award will remain in effect following your involuntary termination and through
the remainder of the performance period and you will be entitled to receive the payout earned, if any, based on the Payout Schedule and the Company’s level of satisfaction of the performance criteria described in Section 2 as of the Vest
Date. 

 5. Transferability. Your right to receive a payout pursuant to this award shall not be transferable nor
assignable by you other than by will or by the laws of descent and distribution. 
 6. Taxes. In connection with a payment to you
pursuant to this award, the Company will withhold or cause to be withheld from such payment such amount of tax as may be required by law to be withheld with respect to the payment. It is intended that this award comply with the provisions of
Section 409A of the Code, so as to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year that is prior to the taxable year or years in which such amounts would otherwise actually be distributed or made
available to you. This award shall be construed, administered, and governed in a manner that effects such intent. Any provisions that would cause any amount deferred or payable under the award to be includible in your gross income or subject to
interest or 

  

 Page 3 of 4 








 
penalties under Section 409A(a)(1) of the Code shall have no force and effect unless and until amended to cause such amount to not be so includible
(which amendment may be retroactive to the extent permitted by Section 409A of the Code). 
 7. No Employment Contract. Nothing
contained in this Agreement shall confer upon you any right with respect to continuance of employment by the Company or any subsidiary, nor limit or affect in any manner the right of the Company or any subsidiary to terminate your employment or
adjust your compensation. 
 8. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the
extent that the amendment is applicable hereto; provided, however, that no amendment shall adversely affect your rights under this Agreement without your consent. 
 9. Severability. In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be
separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable. 
 10.
Relation to Plan. This Agreement is subject to the terms and conditions of the Plan. In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern. Capitalized terms used herein without
definition shall have the meanings assigned to them in the Plan. The Compensation Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein, have the right to determine any
questions which arise in connection with the grant of this award. 
 11. Successors and Assigns. Without limiting Section 5
hereof, the provisions of this Agreement shall inure to the benefit of, and be binding upon, your successors, administrators, heirs, legal representatives and assigns, and the successors and assigns of the Company. 
 12. Governing Law. The interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the State of Ohio, without
giving effect to the principles of conflict of laws thereof. 
  

 Page 4 of 4