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2008 INCENTIVE BONUS PLAN
 1.0 PURPOSE
 1.1
    
    The 2008 Incentive Bonus Plan (Plan) is established to incent and reward
eligible Participants (defined in Section 2.3) for performance towards achieving
Business Targets and Individual Targets for the current fiscal year.
 2.0 DEFINITIONS
 2.1
    
    Company means StarTek, Inc.2.2
    
    Board means the board of directors of StarTek, Inc.2.3
    
    Participant means an employee of the Company or one of its wholly-owned
subsidiaries who holds the position of director or above and is designated as a
participant in the Plan by the Companys president or Board.2.4
    
    Plan Year means January 1, 2008 through December 31, 2008, inclusive.
 (a)
    
    First Half means January 1 through June 30 of the Plan Year.(b)
    
    Second Half means July 1 through December 31 of the Plan Year.(c)
    
    Half or Half Year refers to either First Half or Second Half.
 2.5
    
    Business Targets are the measurements of the Companys performance
established for each Half of the Plan Year by the Companys executive management and
Board as described in Section 3.1(a)(i) below.2.6
    
    Individual Targets are the specific and measurable goals established for a
Participant for each Half of the Plan Year as described in Section 3.1(b)(i) below.2.7
    
    Bonus 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 C.
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(b)
    
    Business Target Eligibility is a percentage that is calculated
by multiplying a Participants Bonus Eligibility by the applicable Business
Target percentage listed in Appendix C.
 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 3.1(b).2.10
    
    Base Salary Earnings is the amount of gross base salary earned by a
Participant during a given Half for which a bonus is calculated.
 3.0 MEASUREMENT CRITERION
 3.1
    
    Bonus payments 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 C.
 (a)
    
    Business Targets
 (i)
    
    The Business Targets are established for each
Half of the Plan Year by the Companys executive management and Board.
Payout for achieving Business Targets, determined semi-annually, is
scaled depending on the Companys performance during the Half versus the
Business Targets per the matrix in Appendix A.
 (1)
    
    For site directors, regional vice
presidents, and operations vice presidents, Business Targets are
based on the gross margin percentage and revenue growth for their
respective site or region for the relevant Half.(2)
    
    For all other Participants,
Business Targets are based on the Companys earnings per share
and revenue growth for the relevant Half.
 (ii)
    
    Business Target Achievement must reach at least
the minimum threshold per the payout matrix in Appendix A for any payout
based on achieving Business Targets to be earned; otherwise the payout
is zero. Business Target Achievement is capped at a maximum payout of
150%.
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(b)
    
    Individual Targets
 (i)
    
    For each Participant, specific and measurable
individual goals are established for each Half of 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. The Participants manager determines
such percentage achievement using a rating of 0% to 100%, which rating
must also be approved by the functional or department head.(iii)
    
    Each rating is subject to final approval by the
President and Chief Executive Officer in coordination with the Senior
Vice President, Human Resources, as a condition for payout.(iv)
    
    Individual Targets payout may occur even if
Business Target thresholds have not been met.
 (c)
    
    Payout can be received for achieving Business Targets alone,
Individual Targets alone, or both Business Targets and Individual Targets. For
example, although a Participant may not receive a payout for Business Target
because the minimum threshold (see Section 3.1(a)(ii)) is not achieved, the
Participant can nevertheless receive a payout for achieving Individual Targets
if requirements are met.
 4.0 PAYMENT FROM THE PLAN
 4.1
    
    Bonus payouts (if any) for the First Half are made after the 2nd
quarter close of the financial books and for the Second Half after the 4th
quarter close of the financial books. In each case, bonus payouts are subject to
approval by the Companys Board.4.2
    
    The amount of a Participants bonus payout for a Half, if any, equals the
product of the Participants Base Salary Earnings multiplied by the sum of:
 (a)
    
    The product of multiplying the Participants Individual Target
Eligibility by the Participants Individual Targets Achievement, and(b)
    
    The product of multiplying the Participants Business Targets
Eligibility by the applicable Business Targets Achievement.
 4.3
    
    Bonus payout, if any, is made to a Participant as a lump sum, less required
payroll taxes and withholdings.
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4.4
    
    In order to earn a bonus payment from the Plan for a Half, a Participant must
also be in active status on the payroll of the Company or one of its wholly-owned
subsidiaries at the time the bonus payments for such Half are made. The Participants
continued work to support the Companys business during the period following the Half
through the time that bonus payments are made is an additional condition for earning a
bonus under the Plan.
 5.0 PART-YEAR PARTICIPANT ELIGIBILITY
 5.1
    
    An employee who becomes a Participant during the Plan Year is eligible to
participate in the Plan as follows:
 (a)
    
    An employee who becomes a Participant during the first three
months of a Half may participate in the Plan during that Half. The Business
Targets and Individual Targets will be those applicable to that Half. The
amount of base salary earned by such employee during that Half after first
becoming a Participant shall be the base salary earnings used to calculate any
bonus payments.(b)
    
    An employee who becomes a Participant during the last three
months of a Half will not be eligible to participate in the Plan during that
Half and therefore shall not earn any bonus under the Plan for that Half.
 5.2
    
    If a Participants employment with the Company and all of its wholly-owned
subsidiaries terminates during the Plan Year, then (s)he ceases to be a Participant on
the date employment is terminated. In this event, a bonus will neither be earned nor
paid. If a Participant changes his or her position within the Company 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 4.0.
 6.0 PROMOTIONS WITHIN THE PLAN YEAR
 6.1
    
    Promotions during the Plan Year will be handled as follows:
 (a)
    
    For the Business Targets and Individual Targets, bonus
calculations will be prorated based on the period of time (days) in each
position level and the prorated salary for the same period of time for each
position held.
 7.0 PLAN APPROVALS
 7.1
    
    This Plan is subject to approval by the Board 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.
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8.0 CHANGEABILITY
 8.1
    
    StarTek management reserves the right to change, suspend or eliminate this
Plan, in whole or in part, at any time, with or without notice to Participants.
 9.0 RELATED DOCUMENTS
 9.1
    
    Appendix A: Business Target Matrices9.2
    
    Appendix B: Individual Goals Form9.3
    
    Appendix C: Bonus Eligibility Matrix
  Susan L. Morse
    
    A. Laurence JonesSVP, Human Resources
    
    President and Chief Executive Officer
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