Document:

Filed by Bowne Pure Compliance

 

EXHIBIT 10.24

2008 SALES COMMISSION PLAN

1.0 PURPOSE

	 	1.1	 	The StarTek Sales Commission Plan (herein referred to as “the Plan”) is written
to describe the manner in which Participants will be eligible and paid for commission
compensation.

2.0 OBJECTIVES

	 	2.1	 	The Plan is designed to support the following objective:
	 
	 	 	 	Generation of revenue at acceptable Customer Margin targets from new clients
	 
	 	2.2	 	Such programs must be defined by an SOW or an amendment to an SOW, be signed by
StarTek and a new client for StarTek during the Plan Period, and generate new revenue
for StarTek.

3.0 PLAN EFFECTIVE DATE

	 	3.1	 	The Plan will be effective January 1, 2008 to December 31, 2008 or until
terminated by StarTek (the “Plan Period”). StarTek reserves the right, in its sole
discretion, to terminate the Plan at any time.

4.0 ELIGIBILITY

	 	4.1	 	Eligible Participants include:

	 	•	 	Director, National Sales
	 
	 	•	 	Senior Vice President, Sales .

5.0 COMMISSION PAYMENTS

	 	5.1	 	The Plan rewards Participants by way of commission payments for building
revenue at acceptable margins. Commissions will be calculated monthly. Payment will
be due in the month following the month in which StarTek invoices its client for the
revenue on which the commission is based.
	 
	 	5.2	 	In the event two or more Participants are otherwise eligible for a commission
under this Plan for a particular program, the commission will be split among them in
the manner determined by the CEO, at the time the requisite SOW or amendment is signed.

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	 	5.3	 	Commissions are calculated monthly during the Plan Period for each qualifying
SOW or for which the Participant is responsible (each being a ‘Qualifying SOW”). To be
a Qualifying SOW, such SOW must:

	 	•	 	Be signed during the Plan Period by both StarTek and a New Client for StarTek,
	 
	 	•	 	Be substantially the result of the Participant’s efforts, and
	 
	 	•	 	Be a source of new revenue for StarTek.

	 	 	 	The term “New Client” refers to someone (or its predecessor by merger or otherwise)
from whom StarTek has not, either directly or indirectly, earned revenue, as determined
by StarTek’s CEO in his discretion. Six months after the signing of the first
Qualifying SOW with a New Client, that client ceases
to be a New Client. Any SOW signed after this six month period with that client is
not a qualifying SOW and therefore no commissions are paid.

	 	5.4	 	The commission due for a Qualifying SOW for any given month will be calculated
by:

	 	 	 	Multiplying the net revenue recognized by StarTek for that month from that
Qualifying SOW (its “NetRev”)
	 
	 	 	 	Times the Participant’s applicable target incentive percentage
(the “TIP”) for that month for that Qualifying SOW.

	 	 	 	The TIP will depend on the customer margin of that Qualifying SOW and the age of that
Qualifying SOW, according to the description in the “Target Incentive Eligibility” for
the Participant’s particular position. The starting month of the SOW shall be the
first month in which the SOW monthly billing exceeds a minimum threshold. For example,
if the customer margin of a particular Qualifying SOW is Y% and the starting month
occurred of that Qualifying SOW occurred:

	 	(a)	 	Within the preceding 12 months, then the TIP for that Qualifying
SOW for that month would be the percentage listed in the column labeled
“1st Year Following Closure of Qualifying SOW” for the row labeled
“X% — Z%” under the heading “Customer Margin % Per Qualifying SOW”;
	 
	 	(b)	 	Within the preceding 13 to 24 months, then the TIP for that
Qualifying SOW for that month would be the percentage listed in the column
labeled “2nd Year Following Closure of Qualifying SOW” for the same
row; and

	 	a.	 	Commissions for a Qualifying SOW cannot be earned
and will not be paid for more than 24 months.

	 	 	 	NetRev for a Qualifying SOW will be the net revenue recognized by StarTek from its
client for that Qualifying SOW for the month in question, and will include all
necessary and proper deductions for discounts, rebates, returns, credits, penalties,
refunds, adjustments for disputed or compromised payments, and the like that are
allocable for that month to that Qualifying SOW (a “Qualifying Adjustment”).

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	 	5.5	 	If the net revenue recognized by StarTek for a particular Qualifying SOW during
a given month is not known in time to calculate a commission for payment during the
subsequent month, then StarTek will pay the Participant an advance against that
commission. The amount of the advance will be an estimate of the commission based on
accrued revenue for that Qualifying SOW for that month, and will be subject to true up
when the recognized revenue is known.
	 
	 	5.6	 	Should the revenue on which a commission is paid (an “earlier commission”)
become subject to a Qualifying Adjustment, StarTek will recalculate the earlier
commission. If the recalculated commission is greater than the earlier commission,
StarTek will pay the difference to the Participant at the time of the next, scheduled
commission payment. If the recalculated commission is less than the earlier
commission, then the Participant will refund the difference to StarTek. StarTek may
deduct such refund from commissions that otherwise become due to the Participant in the
future. For this purpose, StarTek may deduct up to one-half of the commissions
otherwise due to the Participant each month until the difference has been refunded in
full. This process may be repeated if a further Qualifying Adjustment occurs, such as
but not limited to, the situation in which StarTek subsequently recognizes revenue on a
Qualifying SOW that had previously not been recognized due to an earlier Qualifying
Adjustment.

6.0. ADDITIONAL PLAN INFORMATION

	 	6.1	 	Commission compensation under this Plan is fully taxable as earned income, and
subject to normal withholding guidelines and applicable taxes and practices.
	 
	 	6.2	 	Commission compensation under this Plan will be calculated by StarTek in
accordance with established Plan criteria and forwarded for approval to the Executive
Vice President & Chief Financial Officer and the President & Chief Executive Officer.
Either of these officers can designate any Senior Vice President who is not a
Participant in this Plan to act as an approver in their absence.
	 
	 	6.3	 	If a Participant’s employment with StarTek terminates, commission compensation
earned by that Participant through the end of the month prior to the date of
termination will be calculated and paid promptly when commission amounts are
determinable. A Participant’s right to earn commission compensation under this Plan
ceases immediately upon termination of employment with StarTek, regardless of the
reason for such termination.
	 
	 	6.4	 	Any recoverable draws or advances of any kind given to a Participant outside of
this Plan will be deducted from the Participant’s first commission payment and will
continue to be deducted from future commission payments until such draws or advances
are repaid in full to StarTek.
	 
	 	6.5	 	If a dispute arises about who is responsible for a given contract, such
responsibility will be determined by the Chief Executive Officer in his sole
discretion. If it becomes necessary to split or share commission payments or if unique
sales opportunities arise, then determination and authorization for commissions, if
any, will be made by the Chief Financial Officer and the Chief Executive Officer.

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	 	6.6	 	If an extraordinary event contributes to securing a Qualifying SOW or
generating an unexpected amount of revenue recognized on a Qualifying SOW, and as a
result, the size of commission arising under this Plan would be uncommon or dramatic
when considering the contribution of the Participant to securing that Qualifying SOW or
generating such revenue, then such commission shall be subject to review and adjustment
by the Chief Financial Officer and the Chief Executive Officer. Such adjustment, if
applied, will be based in large measure on the actual role of the involved Participant
and/or the unusual nature of the event causing the situation.
	 
	 	6.7	 	If the invoiced revenue on which a commission is paid proves to be materially
different from the revenue StarTek actually recognizes, then at StarTek’s option:

	 	(a)	 	The relevant commissions shall be recalculated, based on the revenue
StarTek actually recognized,
	 
	 	(b)	 	The Participant will promptly refund to StarTek the difference
between the commissions previously paid and the recalculated commissions.

	 	 	 	The cause for such a material difference may be, by way of example and not limitation,
disputed payments, a client withholding payment, or a client being more than 120 days
late in payment. If StarTek subsequently receives, within the next 12 months, the
disputed, withheld, late, or other payment, then StarTek shall promptly restore to the
Participant the amount of the “clawed back” commission attributable to the subsequently
recovered revenue.
	 
	 	6.8	 	StarTek reserves the right, in its sole discretion, to modify, suspend, or
eliminate this Plan at any time with or without notice.
	 
	 	6.9	 	StarTek reserves the right to decide, in its absolute discretion, at any time
and from time to time:

	 	(a)	 	Whether to enter, renew, amend, extend, or terminate any contract,
proposed contract, and/or contract negotiation, with any client or prospective
client, as well as the terms and conditions under which it will do so, and
	 
	 	(b)	 	To whom it will assign responsibility for any such contract, proposed
contract, and/or contract negotiation, which assignment StarTek may change at any
time and from time to time, in its discretion.

	 	 	 	If either 6.9(a) or 6.9(b) above occurs, then such decision may affect the amount of a
Participant’s commissions under this Plan. .
	 
	 	6.10	 	Employment with StarTek is “at will” and may be terminated at any time by
either the Participant or StarTek with or without notice and for any or no reason,
unless the Participant has entered into a written employment agreement with StarTek
modifying the “at will” employment relationship. This Plan is not intended to alter
the “at will” employment relationship.

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	 	6.11	 	Neither this Plan nor participation in it shall:

	 	(a)	 	Affect the “at-will” nature of each Participant’s employment with
StarTek,
	 
	 	(b)	 	Provide any assurance of continued employment with StarTek or
participation in the Plan, nor
	 
	 	(c)	 	Provide any assurance that this Plan or another commission plan will
be offered in the future to any Participant.

	 	6.12	 	StarTek’s SVP-HR shall be responsible for the administration of this Plan and
StarTek’s CEO shall have sole authority and discretion to interpret its provisions and
applicability.

7.0 RELATED FORM

	 	7.1	 	Appendix A: Target Incentive Eligibility per Position

APPROVALS:

	 	 	 
	 
	 

Susan L. Morse

	 	 
	Senior Vice President, Human Resources
	 	 
	 
	 
	 	 
	 

	 	 
	David G. Durham

	 	A. Laurence Jones
	Chief Financial Officer

	 	Chief Executive Officer
	 
	 
	 	 
	 

	 	 
	Employee Name

	 	Date

2008 Sales Commission Plan

 

Page 5 of 5Filed by Bowne Pure Compliance

 

EXHIBIT 10.25

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 Matrices
	 
	 	9.2	 	Appendix B: Individual Goals Form
	 
	 	9.3	 	Appendix C: Bonus Eligibility Matrix

APPROVALS:

	 	 	 
	 
	 

	 	 
	Susan L. Morse

	 	A. Laurence Jones
	SVP, Human Resources

	 	President and Chief Executive Officer

 

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