Document:

Prepared by MERRILL CORPORATION www.edgaradvantage.com

Exhibit 10.11  

 APAC Customer Services, Inc.

Management Incentive Plan

(As Amended and Restated Effective January 1, 2001)  

    Section 1
ESTABLISHMENT OF THE PLAN  

    APAC Customer Services, Inc. (the "Company") established the APAC Customer Services, Inc. Management Incentive Plan effective as of
January 3, 2000 (the "Plan"), to reward certain eligible employees of the Company who help achieve the Company's annual performance goals and, in some cases, specified individual goals. The
Company hereby amends and restates the Plan, as set forth herein, effective January 1, 2001. 

Section 2
DEFINITIONS  

    2.1  Annual Incentive Award means the actual bonus earned during a Plan Year by a Participant,
as determined by the Committee at or after the end of the Plan Year. A Participant's Annual Incentive Award shall be stated as a percentage of the Participant's Base Salary. 

    2.2  Base Salary means the annual base pay rate in effect at the end of the Plan Year. 

    2.3  Board means the Board of Directors of the Company. 

    2.4  Cause means: 

    (a)  Gross
negligence or gross misconduct in the performance of the Participant's employment duties; 

    (b)  Willful
disobedience of the lawful directions received from the Company or from the person to whom the Participant directly reports or of established policies of
the Company; or 

    (c)  Commission
of a crime involving fraud or moral turpitude that can reasonably be expected to have an adverse effect on the business, reputation or financial
situation of the Company. 

    2.5.  Change in Control means any of the following events: 

    (a)  A
tender offer shall be made and consummated for the ownership of more than 50% of the outstanding voting securities of the Employer; 

    (b)  The
Employer shall be merged or consolidated with another corporation and as a result of such merger or consolidation less than 50% of the outstanding voting
securities of the surviving or resulting corporation shall be owned in the aggregate by the former shareholders of the Employer, as the same shall have existed immediately prior to such merger or
consolidation; 

    (c)  The
Employer shall sell all or substantially all of its assets to another corporation which is not a wholly-owned subsidiary or affiliate; 

    (d)  As
the result of, or in connection with, any contested election for the Board of Directors of the Employer, or any tender or exchange offer, merger or business
combination or sale of assets, or any combination of the foregoing (a "Transaction"), the persons who were Directors of the Employer before the Transaction shall cease to constitute a majority of the
Board of Directors of the Employer, or any successor thereto; or 

    (e)  A
person, within the meaning of Section 3(a)(9) or of Section 13(d)(3) (as in effect on the date hereof) of the Securities and Exchange Act of 1934
("Exchange Act"), other than any employee benefit plan then maintained by the Employer, shall acquire more than 50% of the outstanding voting securities of the Employer (whether, directly, indirectly,
beneficially or of record). For purposes hereof, ownership of voting securities shall take into account and shall include ownership as determined by 

 

applying the provisions of Rule 13d-3(d)(1)(i) (as in effect on the date hereof) pursuant to the Exchange Act. 

    Notwithstanding
the foregoing, (i) a Change in Control will not occur for purposes of this Agreement merely due to the death of Theodore G. Schwartz, or as a result of the
acquisition by Theodore G. Schwartz, alone or with one or more affiliates or associates, as defined in the Exchange Act, of securities of the Employer, as part of a going-private transaction or
otherwise, unless Mr. Schwartz or his affiliates, associates, family members or trusts for the benefit of family members (collectively, the "Schwartz Entities") do not control, directly or
indirectly, at least twenty-seven percent (27%) of the resulting entity, and (ii) if the Schwartz Entities control, directly or indirectly, less than twenty-seven (27%) percent of the
Employer's voting securities while it is a public company, then "331/3%" shall be substituted for "50%" in clauses (a) and (e) of this Section 2.5, and
"662/3%" shall be substituted for "50%" in clause (b) of this Section 2.5. 

    2.6  Code means the Internal Revenue Code of 1986, as amended. References to a Section of the Code shall include
references to any temporary or final regulation related to such Section or any successor to such Section or regulation. 

    2.7.  Committee means the Compensation Committee of the Board designated to administer the Plan in accordance with
Section 8. 

    2.8  Company means APAC Customer Services, Inc., a Delaware corporation, and any successor thereto. 

    2.9  Disability means, to the extent such term is not defined in an Employment Agreement, if any, a physical or mental
condition that entitles the Participant to benefits under the Company-sponsored long term disability plan covering the Participant. 

    2.10  Eligible Individual means one of the personnel of the Company designated as such by the Committee. 

    2.11  Employment Agreement means one or more written agreements entered into by the Participant and the Employer
covering the terms and conditions of the Participant's employment with the Company, including written agreements covering the terms and conditions of severance payable, if any, upon a termination of
the Participant's employment. 

    2.12  Good Reason means, after notice by the Participant to the Company and a fifteen (15) day opportunity by the
Company to cure (during which it does not cure the condition), 

    (a)  The
Participant's principal place of work (not including regular business travel) is relocated by more than fifty (50) miles; 

    (b)  The
Participant's duties, responsibilities or authority as an executive employee are materially reduced or diminished from those in effect immediately prior to a
Change in Control without the Participant's written consent; provided that any reduction or diminishment in any of the foregoing resulting merely from the acquisition of the Company and its existence
as a subsidiary or division of another entity shall not be sufficient to constitute Good Reason; 

    (c)  The
compensation received by the Participant is reduced in the aggregate, and such reduction is not remedied within thirty (30) days of the Participant's
notice to the Company thereof; 

    (d)  A
determination is made by the Participant in good faith that as a result of a Change in Control, and a change in circumstances thereafter significantly affecting
his or her position, he or she is unable to carry out the authorities, powers, functions or duties attached to his or her position and the situation is not remedied within thirty (30) days
after receipt of the Company of written notice from the Participant of such determination; 

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    (e)  The Company violates the material terms of the Plan with respect to the Participant; or 

    (f)  There
is a liquidation, dissolution, consolidation or merger of the Company or transfer of all or a significant portion of its assets unless a successor or
successors (by merger, consolidation or otherwise) to which all or a significant portion of its assets have been transferred shall have assumed (either by operation of law or otherwise) all duties and
obligations of the Company under the Plan. 

    2.13  Participant means an Eligible Individual who has been designated as eligible to participate under
Section 3. 

    2.14  Performance Goals means the criteria established by the Committee pursuant to Section 4, which shall be
used to determine whether a Participant is entitled to an Annual Incentive Award and the amount of an Annual Incentive Award. 

    2.15  Plan means the APAC Customer Services, Inc. Management Incentive Plan, as set forth herein, and amended
from time to time. 

    2.16  Plan Year means the Company's fiscal year. 

    2.17  Retirement means, to the extent such term is not defined in an Employment Agreement, a Participant's termination
of employment at or after the "normal retirement date" as provided under the Company's qualified pension plan in which the Participant is participating. 

Section 3
ELIGIBILITY AND PARTICIPATION  

    3.1  General. The Committee, in its discretion, shall designate the Eligible
Individuals who are eligible to participate in the Plan for each Plan Year. Eligible Individuals who are eligible to participate in the Plan shall be so notified in writing, and shall be apprised of
the Performance Goals and related Annual Incentive Award opportunities for the relevant Plan Year within the first 90 days of the Plan Year. 

    3.2  Partial Year Participation. In the event that an Eligible Individual becomes eligible to participate
in the Plan subsequent to the commencement of a Plan Year (either because he or she first becomes an Eligible Individual or because he or she is designated as eligible to participate after the
commencement of the Plan Year), then such individual's Annual Incentive Award shall be determined using his or her Base Salary multiplied by a fraction, the numerator of which is the number of days in
such year that the Participant was eligible to participate in the Plan and the denominator of which is 365. 

    3.3  No Right to Participate. No Participant, Eligible Individual or other employee of the Company shall
at any time have the right to be selected for participation in the Plan for any Plan Year, despite having previously participated in this Plan or another incentive plan of the Company. 

Section 4
ANNUAL INCENTIVE OPPORTUNITY  

    4.1  Performance Goals.

    (a)  Company Performance Goals. Prior to the beginning of the Plan Year, or as soon as practicable thereafter, the
Committee, in its discretion, and subject to the approval of the Board, shall establish Performance Goals for Eligible Individuals. For the Performance Goals so established, the Committee shall
establish individual or aggregate threshold, target and maximum levels of performance necessary to achieve and to earn all or a portion of an Annual Incentive Award. The Performance Goals may be based
upon both financial and non-financial goals. Financial goals shall be measured by both revenue and profitability, each of which shall be weighted depending upon the Eligible Individual or
class of 

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Eligible Individuals, as determined by the Committee. Unless the Committee determines otherwise, earnings per share shall be used to measure profitability for the Company. 

    (b)  Individual Performance Goals. If the Committee determines that the Annual Incentive Award shall be attributable, in
part, to a Participant's achievement of individual Performance Goals, such achievement shall be determined by the person to whom the Participant directly reports, subject to the approval of the
Committee. Notwithstanding any provision of the Plan to the contrary, a Participant shall not receive payment of an Annual Incentive Award if the Participant does not achieve a "meets expectations" or
higher performance appraisal rating under the Company's performance management plan or program. 

    (c)  Adjustment of Performance Goals. The Committee shall have the right to adjust the Performance Goals and the Annual
Incentive Award opportunities (either up or down) during a Plan Year if it determines that external changes or other unanticipated business conditions have materially affected the fairness of the
Performance Goals and have unduly influenced the ability to achieve the Performance Goals. Further, in the event of a Plan Year of less than twelve (12) months, the Committee shall have the
right to adjust the Performance Goals and the Annual Incentive Award opportunities, in its sole discretion. 

    4.2  Annual Incentive Awards. As soon as practicable after the end of the Plan Year, the Committee, in
its discretion, shall determine the amount of each Participant's Annual Incentive Award. Unless the Committee determines otherwise, Participants shall receive an Annual Incentive Award based upon
their position and percentage achievement of the Performance Goal or Goals established for such position in accordance with the following table. Notwithstanding the foregoing, if a Participant is
promoted or demoted during the Plan Year, the Annual Incentive Award will equal the sum of prorated amounts for each position that the Participant was in during the Plan Year based on his or her
performance for the whole Plan Year and the number of days in such year that the Participant served in each position. 

	 
	 	Annual Incentive Award

	Position
	 	Threshold Level
	 	Target Level
	 	Maximum Level

	Chief Executive Officer	 	30% of Base Salary	 	60% of Base Salary	 	90% of Base Salary
	Executive Vice Presidents	 	25% of Base Salary	 	50% of Base Salary	 	75% of Base Salary
	Senior Vice Presidents	 	20% of Base Salary	 	40% of Base Salary	 	60% of Base Salary
	Vice Presidents	 	15% of Base Salary	 	30% of Base Salary	 	45% of Base Salary
	Directors and Site Directors	 	10% of Base Salary	 	20% of Base Salary	 	30% of Base Salary
	Managers and Center Business Managers	 	7.5% of Base Salary	 	15% of Base Salary	 	22.5% of Base Salary
	Individual Contributors	 	5% of Base Salary	 	10% of Base Salary	 	15% of Base Salary

    Annual
Incentive Awards for percentage achievement of Performance Goals between the threshold, target and maximum levels shall be determined by interpolation in accordance with
procedures established by the Committee. 

Section 5
  PAYMENT OF ANNUAL INCENTIVE AWARD  

    5.1  Form and Timing of Payment. As soon as practicable after the end of each
Plan Year (and, generally, during March), the Company shall pay to each Participant a lump sum cash payment equal to the Participant's Annual Incentive Award for the applicable Plan Year. 

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    5.2  Payment of Partial Awards. In the event a Participant no longer meets the eligibility criteria set
forth in the Plan during the course of a particular Plan Year, the Committee may, in its discretion, pay a partial award for the portion of the Plan Year the individual was a Participant. 

Section 6
  TERMINATION OF EMPLOYMENT  

    6.1  Termination for Cause. In the event the Company terminates the Participant's
employment for Cause, the Participant shall forfeit all rights to receive an Annual Incentive Award for the Plan Year in which the Participant's employment terminates. 

    6.2  Termination by Death, Disability or Retirement. Unless an Employment Agreement specifically provides
for the treatment of an annual incentive award under the circumstances, in the event that the Participant's employment with the Company terminates by reason of death, Disability, or Retirement during
a Plan Year, the Participant (or his or her beneficiary or estate, as described below) shall be entitled to receive an annual incentive award for such Plan Year equal to the product of (i) a
Target Level Annual Incentive Award times (ii) a fraction, the numerator of which is the number of days that the Participant was participating hereunder in such year through the day of
termination and the denominator of which is 365. Payment under this Section 6.2 may be made in accordance with Section 5.1 or sooner, as determined by the Committee in its discretion. 

    In
the event a Participant's employment with the Company terminates by reason of death, payments under this Section 6.2 shall be made to the Participant's surviving spouse, if
any, or other beneficiary designated in a writing delivered to the Company (and in such form as is prescribed by the Company). If the Participant has no surviving spouse, and has not designated a
beneficiary, the remaining payments shall be made to the Participant's estate. 

    6.3  Other Termination. Unless an Employment Agreement specifically provides for the treatment of an
annual incentive award under the circumstances, it is a condition to the receipt of an Annual Incentive Award that the Participant be employed or that the Participant's employment terminated because
of death, Disability or Retirement, and the Participant shall not be entitled to receive an Annual Incentive Award for the Plan Year in which the Participant's employment terminates unless such
termination is because of death, Disability or Retirement. However, the Committee may, in its discretion, pay a prorated award for the Plan Year in which the Participant's employment terminates other
than death, Disability or Retirement, in an amount determined by the Committee. 

    6.4  Change in Control Termination. Unless an Employment Agreement specifically provides for the
treatment of an annual incentive award under the circumstances, in the event that the Company terminates a Participant's employment without Cause coincident with or after a Change in Control, or, the
Participant resigns from employment with the Company due to an event constituting Good Reason that occurs coincident with or after a Change in Control, the Participant shall be entitled to receive an
annual incentive award for such Plan Year equal to the product of (i) a Target Level Annual Incentive Award, based on the highest Base Salary rate paid to the Participant for such Plan Year,
times (ii) a fraction, the numerator of which is the number of days in such year through the day of termination and the denominator of which is 365. 

Section 7
  RIGHTS OF PARTICIPANTS  

    7.1  No Employment Rights. Nothing in the Plan shall interfere with or limit in
any way the right of the Company to terminate any Eligible Individual's employment at any time, nor confer upon any Eligible Individual any right to continue in the employ of the Company. 

    7.2  Nontransferability. No Participant or any other person shall have any right to commute, sell,
assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt of the amounts, if any, payable hereunder, or any part thereof, which
are, and 

5

 

all rights to which are, expressly declared to be unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration
for the payment of any debts, judgment, alimony or separate maintenance owed by a Participant or any other person, nor be transferable by operation of law in the event of a Participant's or any other
person's bankruptcy or insolvency. 

Section 8
  ADMINISTRATION  

    The Committee shall administer the Plan in accordance with its terms, and shall have the discretion and authority necessary to carry out the administration of
the Plan. With respect to Participants whose position is below the Senior Vice President level, the Committee may delegate, to one or more individuals, some or all of its authority to administer the
Plan and to permit such individuals to have the discretion necessary to carry out the administration of the Plan. Such authority shall include the authority to: 

    (a)  Select
the Eligible Individuals eligible to participate in the Plan for each Plan Year or portion thereof; 

    (b)  Determine
the Performance Goals applicable to the payment of Annual Incentive Awards, and the amount of the Annual Incentive Awards payable upon the Participants'
achievement of the Performance Goals; 

    (c)  Impose
such limitations, restrictions, an conditions upon the receipt of Annual Incentive Awards as it deems appropriate; 

    (d)  Interpret
the Plan, make any necessary factual determinations under the Plan, adopt, amend, and rescind administrative guidelines and other rules and regulations
relating to the Plan; 

    (e)  Correct
any defect or omission or reconcile any inconsistency in this Plan or any award of payment hereunder, and 

    (f)  Make
all other necessary determinations and take all other actions necessary or advisable for the implementation and administration of the Plan. 

    The
Committee's determinations on matters within its authority shall be conclusive and binding upon all parties. 

Section 9
  AMENDMENT AND MODIFICATION  

    The Committee, in its sole discretion, without notice, at any time and from time to time, may modify or amend, in whole or in part, any or all of the
provisions of the Plan, or suspend or terminate it entirely; provided, however, that no such modification, amendment, suspension, or termination may, without the consent of a Participant (or his or
her beneficiary in the case of the death of the Participant), reduce the right of a Participant (or his or her beneficiary, as the case may be) to a payment or distribution hereunder to which he or
she is otherwise entitled. 

Section 10
  MISCELLANEOUS  

    10.1  Governing Law. The Plan, and all agreements hereunder, shall be governed by
and construed in accordance with the laws of the State of Illinois. 

    10.2  Withholding Taxes. The Company shall have the right to deduct from all payments under the Plan any
Federal, state, or local taxes required by law to be withheld with respect to such payments. 

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    10.3  Shareholder Approval. This Plan is adopted and any Annual Incentive Awards hereunder are made
subject to the condition that the Plan be approved by the shareholders of the Company. If the Plan is not so approved, it and such Awards shall be null and void and without effect. 

    10.4  Costs of the Plan. All costs of implementing and administering the Plan shall be borne by the
Company. 

    10.5  Unsecured General Creditor. Participants and their heirs, successors and assigns shall have no
legal or equitable rights, interest or claims in any property or assets of the Company by virtue of participation in the Plan. The Company's obligation under the Plan shall be that of an unfunded and
unsecured promise of the Company to pay money in the future. 

    10.6  Entire Agreement. Except to the extent an Employment Agreement expressly provides for additional or
other terms pertaining to a Participant's or beneficiary's annual incentive compensation, including, but not limited to, guaranteed bonuses or annual incentive award opportunities equal to a
percentage of Base Salary different from the percentages set forth above in Section 4.2, this Plan and any written amendments thereto are the entire agreement between the Company and the
Participants and beneficiaries regarding the Plan. No oral statement regarding the Plan may be relied upon by any Participant or beneficiary. 

    10.7  Limitations of Liability. The liability of the Company under this Plan is limited to the
obligations expressly set forth in the Plan, and no term or provision of the Plan may be construed to impose any further or additional duties, obligations or costs on the Company or the Committee not
expressly set forth in the Plan. 

    10.8  Successors. All obligations of the Company under the Plan shall be binding upon and inure to the
benefit of any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the
business and/or assets of the Company. 

    10.9  Gender and Number. Except where otherwise indicated by the context, any masculine term used herein
also shall include the feminine, the plural shall include the singular, and the singular shall include the plural. 

    10.10  Headings. The headings and captions contained herein are provided for convenience only, and are
not to be used to in the interpretation or construction of any provision contained in the Plan. 

    10.11  Severability. In the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

*  *  *

    IN WITNESS WHEREOF, the Company has executed this Plan by its duly authorized officers as of this 6th day of February, 2001. 

	 	APAC CUSTOMER SERVICES, INC.
	

 	

By:	
 	

/s/ PETER M. LEGER   

	

 	

Its:	
 	

Chief Executive Officer

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   Table of Contents  

	 
	 
	 	 
	 	Page

	SECTION 1  ESTABLISHMENT OF THE PLAN	 	1
	
SECTION 2  DEFINITIONS	
 	

1
	 	2.1 	 	Annual Incentive Award	 	1
	 	2.2 	 	Base Salary	 	1
	 	2.3 	 	Board	 	1
	 	2.4 	 	Cause	 	1
	 	2.5 	 	Change in Control	 	1
	 	2.6 	 	Code	 	2
	 	2.7 	 	Committee	 	2
	 	2.8 	 	Company	 	2
	 	2.9 	 	Disability	 	2
	 	2.10	 	Eligible Individual	 	2
	 	2.11	 	Employment Agreement	 	2
	 	2.12	 	Good Reason	 	2
	 	2.13	 	Participant	 	3
	 	2.14	 	Performance Goals	 	3
	 	2.15	 	Plan	 	3
	 	2.16	 	Plan Year	 	3
	 	2.17	 	Retirement	 	3
	
SECTION 3  ELIGIBILITY AND PARTICIPATION	
 	

3
	 	3.1 	 	General	 	3
	 	3.2 	 	Partial Year Participation	 	3
	 	3.3 	 	No Right to Participate	 	3
	
SECTION 4  ANNUAL INCENTIVE OPPORTUNITY	
 	

3
	 	4.1 	 	Performance Goals	 	4
	 	4.2 	 	Annual Incentive Awards	 	4
	
SECTION 5  PAYMENT OF ANNUAL INCENTIVE AWARD	
 	

4
	 	5.1 	 	Form and Timing of Payment	 	4
	 	5.2 	 	Payment of Partial Awards	 	5
	SECTION 6  TERMINATION OF EMPLOYMENT	 	5
	 	6.1 	 	Termination for Cause	 	5
	 	6.2 	 	Termination by Death, Disability or Retirement	 	5
	 	6.3 	 	Other Termination	 	5
	 	6.4 	 	Change in Control Termination	 	5
	SECTION 7  RIGHTS OF PARTICIPANTS	 	5
	 	7.1 	 	No Employment Rights	 	5
	 	7.2 	 	Nontransferability	 	5
	
SECTION 8  ADMINISTRATION	
 	

6
	
SECTION 9  AMENDMENT AND MODIFICATION	
 	

6
	
SECTION 10 MISCELLANEOUS	
 	

6
	 	10.1 	 	Governing Law	 	6
	 	10.2 	 	Withholding Taxes	 	6
	 	10.3 	 	Shareholder Approval	 	7
	 	10.4 	 	Costs of the Plan	 	7
	 	10.5 	 	Unsecured General Creditor	 	7
	 	10.6 	 	Entire Agreement	 	7
	 	10.7 	 	Limitations of Liability	 	7
	 	10.8 	 	Successors	 	7
	 	10.9 	 	Gender and Number	 	7
	 	10.10	 	Headings	 	7
	 	10.11	 	Severability	 	7

i

APAC Customer Services, Inc.

Management Incentive Plan  

(As Amended and Restated

Effective January 1, 2001)Prepared by MERRILL CORPORATION www.edgaradvantage.com

Exhibit 10.13  

EMPLOYMENT SECURITY AGREEMENT  

    This Employment Security Agreement (the "Agreement") is entered into as of this  day of            , 2000, by and between APAC Customer
Services, Inc. (the "Employer") and            (the "Executive"). 

W I T N E S S E T H:  

    WHEREAS, the Executive is currently employed by the Employer as its [describe
position]; and 

    WHEREAS, in the event of a change in control of the Employer, the Employer desires to provide certain security to the Employer and the
Executive, and to retain the Executive's continued devotion of the Executive's business time and attention to the Employer's affairs; and 

    WHEREAS, the Executive and the Employer desire to enter into this Agreement, which sets forth the terms of the security the Employer is
providing the Executive with respect to the Executive's employment in the event of a change in control of the Employer; 

    NOW, THEREFORE, in consideration of the mutual convenants and promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Employer and the Executive agree as follows: 

    1.  Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below: 

	(a)
	"Base Salary" shall mean the higher of the Executive's annual base salary at the rate in effect on (i) the date of a Change in
Control, or (ii) the date the Executive's Employment terminates without regard to any reduction made in connection with an event constituting Good Reason hereunder.

	(b)
	"Bonus" shall mean the bonus based on the Executive's Base Salary that is payable to the Executive under the Employer's annual
incentive bonus plan, as in effect from time to time or under a successor annual incentive plan, at the target payout level in effect on the date the Executive's Employment terminates without regard
to any reduction made in connection with an event constituting Good Reason hereunder or on the date of a Change in Control, whichever produces a greater result.

	(c)
	"Cause" shall exist only if:

	(i)
	The
Executive is grossly negligent or engages in gross misconduct in the performance of his employment duties;

	(ii)
	The
Executive willfully disobeys the lawful directions received from the Company or from the person to whom the Executive directly reports or of established policies of the
Company; or

	(iii)
	The
Executive commits a crime involving fraud or moral turpitude that can reasonably be expected to have an adverse effect on the business, reputation or financial situation of
the Employer. 

	(d)
	"Change in Control" shall mean any of the following events:

	(i)
	A
tender offer shall be made and consummated for the ownership of more than 50% of the outstanding voting securities of the Employer;

	(ii)
	The
Employer shall be merged or consolidated with another corporation and as a result of such merger or consolidation less than 50% of the outstanding voting securities of the
surviving or resulting corporation shall be owned in the aggregate by the former shareholders of the Employer, as the same shall have existed immediately prior to such merger or consolidation; 

 

	(iii)
	The
Employer shall sell all or substantially all of its assets to another corporation which is not a wholly-owned subsidiary or affiliate;

	(iv)
	As
the result of, or in connection with, any contested election for the Board of Directors of the Employer, or any tender or exchange offer, merger or business combination or sale
of assets, or any combination of the foregoing (a "Transaction"), the persons who were Directors of the Employer before the Transaction shall cease to constitute a majority of the Board of Directors
of the Employer, or any successor thereto; or

	(v)
	A
person, within the meaning of Section 3(a)(9) or of Section 13(d)(3) (as in effect on the date hereof) of the Securities and Exchange Act of 1934 ("Exchange Act"),
other than any employee benefit plan then maintained by the Employer, shall acquire more than 50% of the outstanding voting securities of the Employer (whether, directly, indirectly, beneficially or
of record). For purposes hereof, ownership of voting securities shall take into account and shall include ownership as determined by applying the provisions of
Rule 13d-3(d)(1)(i) (as in effect on the date hereof) pursuant to the Exchange Act. 

Notwithstanding
the foregoing, (A) a Change in Control will not occur for purposes of this Agreement merely due to the death of Theodore G. Schwartz, or as a result of the acquisition by
Theodore G. Schwartz, alone or with one or more affiliates or associates, as defined in the Exchange Act, of securities of the Employer, as part of a going-private transaction or otherwise, unless
Mr. Schwartz or his affiliates, associates, family members or trusts for the benefit of family members (collectively, the "Schwartz Entities") do not control, directly or indirectly, at least
twenty-seven percent (27%) of the resulting entity, and (B) if the Schwartz Entities control, directly or indirectly, less than twenty-seven (27%) percent of the Employer's voting securities
while it is a public company, then "331/3%" shall be substituted for "50%" in clauses (i) and (v) of this Paragraph 2(d), and "662/3%" shall be
substituted for "50%" in clause (ii) of this Paragraph 2(d). 

	(e)
	"Disability" shall mean, to the extent such term is not defined in an Employment Agreement, if any, a physical or mental condition
that entitles the Executive to benefits under the Employer-sponsored long term disability plan in which the Executive participates.

	(f)
	"Employment" shall mean being in the employ of the Employer.

	(g)
	"Employment Agreement" shall mean a written agreement between the Executive and the Employer covering the terms and conditions of
Executive's employment with the Employer.

	(h)
	"Good Reason" shall exist if, after notice by the Executive to the Employer and a fifteen (15) day opportunity by the Employer
to cure (during which it does not cure the condition):

	(i)
	The
principal place of work (not including regular business travel) is relocated by more than fifty (50) miles;

	(ii)
	The
Executive's duties, responsibilities or authority as an executive employee are materially reduced or diminished from those in effect immediately prior to a Change in Control
without the Executive's written consent, provided that any reduction or diminishment in any of the foregoing resulting merely from the acquisition of the Employer and its existence as a subsidiary or
division of another entity shall not be sufficient to constitute Good Reason;

	(iii)
	The
compensation received by the Executive is reduced in the aggregate, and such reduction is not remedied within thirty (30) days of the Executive's notice to the Employer
thereof; 

2

 

	(iv)
	A
determination is made by the Executive in good faith that as a result of the Change in Control, and a change in circumstances thereafter, significantly affecting his position he
is unable to carry out the authorities, powers, functions or duties attached to his position, and the situation is not remedied within thirty (30) days after receipt of the Employer of written
notice from the Executive of such determination;

	(v)
	The
Employer violates the material terms of this Agreement, or an Employment Agreement, if any; or

	(vi)
	There
is a liquidation, dissolution, consolidation or merger of the Employer or transfer of all or a significant portion of its assets unless a successor or successors (by merger,
consolidation or otherwise) to which all or a significant portion of its assets have been transferred shall have assumed (either by operation of law or otherwise) all duties and obligations of the
Employer under this Agreement and any Employment Agreement, if any. 

    2.  Term. The term of this Agreement shall be the period commencing on the date first set forth above and terminating on
the date the Executive's employment with the Employer is terminated; provided
that, if the Executive's employment is terminated following a Change in Control under the circumstances described in Paragraph 3, the term shall continue in effect until all payments and
benefits have been made or provided to the Executive hereunder. 

    3.  Benefits Upon Termination of Employment. If (i) the Employer terminates the Executive's Employment without
Cause coincident with or at any time within 12 months following a Change in Control; or (ii) the Executive terminates the Executive's Employment by resignation due to an event
constituting Good Reason that occurs coincident with or at any time within 12 months following a Change in Control, the Executive shall be entitled to receive the following: 

	(a)
	Severance Pay. The Employer shall pay to the Executive an amount equal to [12 for VPs or 18 for SVPs] months
of the Executive's Base Salary and [one times for VPs or 1.5 times for SVPs] the Executive's Bonus. Payment shall be made in a lump sum within thirty (30) days after
termination of the Executive's Employment.

	(b)
	Stock Options. To the extent the Executive has any outstanding option or options to purchase common stock of the Employer as of the
date of the Change in Control, the exercisability of such options shall be determined in accordance with the terms of the Employer's stock option plan then in effect, and/or a written agreement
entered into by the Employer and the Executive, which covers the terms and conditions of the exercise of such option or options.

	(c)
	Health Benefits. The Employer shall provide to the Executive, the Executive's spouse or beneficiary continued medical, dental, life,
disability coverages and such other benefits as provided under any other welfare plans or programs in which he participated immediately prior to his termination for a period of [12 for VPs
or 18 for SVPs] months on the same basis as provided to other employees as of the date of termination. Following such period, the Employer shall make available to such persons any benefit
continuation or conversion of rights otherwise provided at the time an employee's employment terminates (without offset for the coverage provided pursuant to the previous sentence), under the
Employer's established welfare plans. 

Notwithstanding
anything in this Agreement to the contrary, to the extent that an Employment Agreement, if any, or such other written agreement between the Executive and the Employer, expressly covers
the terms of severance payable, if any, and such other benefits available to the Executive upon termination of his Employment following a Change in Control, such Employment Agreement or other
agreement shall govern and supersede the terms of this Agreement. 

3

 

    4.  No Setoff.

	(a)
	The
payments and benefits made or provided to the Executive, the Executive's spouse or other beneficiary under this Agreement shall not be reduced by the amount of any claim of the
Employer against the Executive or the Executive's spouse or other beneficiary for any debt or obligation of the Executive or the Executive's spouse or other beneficiary to the Employer.

	(b)
	The
Executive shall have no duty to seek employment following termination of Employment or otherwise to mitigate damages. The amounts or benefits payable or available to the
Executive, the Executive's spouse or other beneficiary under this Agreement shall not be reduced by any amount the Executive may earn or receive from employment with another employer or from any other
source. 

    5.  Existing Rights. Any payments and benefits under this Agreement are in lieu of benefits to which the Executive may
be entitled under any severance plan or policy of the Employer, but are in addition to any other benefits due to the Executive, the Executive's spouse or other beneficiaries from the Employer,
including, but not limited to, payments under any other welfare or retirement plan maintained by the Employer in which the Executive is or was eligible to participate. No provision in this Agreement
shall be construed to reduce or impair the Executive's rights and benefits under such welfare or retirement plans. 

    6.  Other Termination.

	(a)
	Termination Before Change in Control. If the Executive's Employment is terminated for any reason before a Change in Control,
severance payments, if any, due to the Executive shall be determined under the Employer's severance plans or policies then in effect, and/or the Executive's Employment Agreement, if any. In such
circumstances, the Executive shall not be entitled to any payments or benefits under this Agreement, and the Employer shall have no further obligation to the Executive hereunder, except to the extent
provided under any welfare, retirement or other plan, policy or arrangement maintained by the Employer in which the Executive is or was eligible to participate.

	(b)
	Termination for Cause or Without Good Reason. If, following a Change in Control, (i) the Executive's Employment is terminated
for Cause by the Board of Directors acting in good faith by written notice by the Employer to the Executive specifying the event relied upon for such termination, or (ii) the Executive
terminates the Executive's Employment without Good Reason, the Executive shall receive
the Executive's Base Salary at the rate then in effect on the date the Executive's Employment terminates paid through the date of termination. In such circumstances, the Executive shall not be
entitled to any payments or benefits under this Agreement, and the Employer shall have no further obligation to the Executive hereunder, except to the extent provided under any welfare, retirement or
other plan, policy or arrangement maintained by the Employer in which the Executive is or was eligible to participate.

	(c)
	Death or Disability. If the Executive's Employment is terminated by reason of death or Disability, the Executive, the Executive's
spouse or other beneficiary, as the case may be, shall not be entitled to any payments or benefits under this Agreement, and the Employer shall have no further obligation to the Executive hereunder
except to the extent provided under any welfare, retirement or other plan, policy or arrangement maintained by the Employer in which the Executive is or was eligible to participate. 

    7.  Section 280G. Notwithstanding any provision of this Agreement to the contrary, in the event that: 

	(a)
	The
aggregate payments or benefits to be made or afforded to the Executive under this Agreement or from the Company in any other manner (the "Termination Benefits") would be 

4

 

deemed
to include an "excess parachute payment" under Section 280G of the Code, or any successor thereto, and 

	(b)
	If
such Termination Benefits were reduced to an amount (the "Non-Triggering Amount"), the value of which is one dollar ($1.00) less than an amount equal to three
(3) times the Executive's "base amount," as determined in accordance with said Section 280G, and the Non-Triggering Amount would be greater than the aggregate value of
Termination Benefits (without such reduction) minus the amount of tax required to be paid by Executive thereon by Section 4999 of the Code, then the Termination Benefits shall be reduced so
that the Termination Benefits are not more than the Non-Triggering Amount. The application of said Section 280G, and the allocation of the reduction required by this Section, shall
be determined by the Company's auditors. 

    8.  Beneficiaries. If the Executive is entitled to payments and benefits under the circumstances described above in
Paragraph 3, but dies before all amounts payable and benefits available thereunder have been paid or provided, the remaining payments and benefits shall be made or provided to the Executive's
surviving spouse, if any, or other beneficiary designated in a writing delivered to the Employer (and in such form as is prescribed by the Employer). If the Executive has no surviving spouse, and has
not designated a beneficiary, the remaining payments shall be made to the Executive's estate. 

    9.  Full Satisfaction; Waiver and Release. As a condition to receiving the payments and benefits hereunder, the
Executive shall execute a document in customary form, releasing and waiving any and all claims, causes of actions and the like against the Employer, their respective successors, shareholders,
officers, trustees, agents and employees, regarding all matters relating to the Executive's service as an employee of the Employer and to the termination of such relationship. Such claims  include, without limitation,
 any claims arising under the Age Discrimination in Employment Act of 1967, as amended (the "ADEA"); Title VII of the Civil
Rights Act of 1964, as amended; the Civil Rights Act of 1991, as amended; the Equal Pay Act of 1962, as amended; the Americans With Disabilities Act of 1990, as amended; the Family Medical Leave Act,
as amended; the Employee Retirement Income Security Act of 1974, as amended; or any other federal, state or local statute or ordinance, but exclude
claims arising under the ADEA to challenge the provisions of this Paragraph 8, and any claims that arise out of an asserted breach of the terms of this Agreement or claims related to the
matters described in Paragraph 5. 

    10.  Assignment. Except as provided above in Paragraph 8, the Employer may not assign this Agreement, or any
rights, duties or obligations hereunder, except that the Employer's rights, duties, and obligations shall be binding obligations of any successor, as
provided in Paragraph 1(h)(vi). 

    No
interest of the Executive (or the Executive's spouse or other beneficiary) nor any right to receive any payment or distribution hereunder shall be subject to sale, transfer,
assignment, pledge, attachment or garnishment or otherwise be assigned or encumbered. No such interest or right shall be taken, voluntarily or involuntarily, for the satisfaction of the obligations or
debts of, or other claims against, the Executive (or the Executive's spouse or other beneficiary), including claims for alimony, child support, separate maintenance and claims in bankruptcy. 

    11.  Source of Payment. The rights created under this Agreement are unfunded promises to provide severance pay and other
benefits described herein in the event of the termination of the Executive's Employment under the circumstances described above in Paragraph 3. The Employer shall not segregate assets for
purposes of payment for any amounts due hereunder, nor shall any provision contained herein be interpreted to require the Employer to segregate assets for purposes of providing payment of any benefit
hereunder. The Executive, the Executive's spouse, or other beneficiary shall not have any interest in or right against any specific assets of the Employer, and any rights shall be limited to those of
a general unsecured creditor. 

5

 

    12. Miscellaneous.

	(a)
	Entire Agreement; Amendment. This Agreement contains the entire Agreement and understanding between the Employer and the Executive
and, except where otherwise indicated herein, supersedes all other agreements, written or oral, relating to the payment of severance or any other benefit under the circumstances described above in
Paragraph 3. Any amendment or modification of the terms of this Agreement must be in writing and signed by the Employer and the Executive to have any binding effect upon the parties.

	(b)
	Applicable Law. Except to the extent preempted by federal law, this Agreement is governed by, and shall be construed and interpreted
in accordance with the substantive laws of the State of Illinois, not including the choice of law provisions thereof.

	(c)
	No Employment Rights. Nothing contained herein shall be construed to confer upon the Executive any right to continue in the
employment of the Employer, or to limit the right of the Employer to terminate the Executive's employment at any time, with or without Cause, subject to the Executive's rights hereunder with respect
to such termination.

	(d)
	Notices. All notices under this Agreement shall be in writing and shall be deemed to have been made when delivered or mailed by
registered, or certified mail, or by a nationally recognized overnight delivery service, postage or charges prepaid. All notices to the Company shall be sent to: 

APAC
Customer Services, Inc.

Six Parkway North Center

Fourth Floor

Deerfield, IL 60015

Attention: Chief Executive Officer 

All
notices to the Executive shall be sent to the Executive's last known address on the Company's records, or such other address as the Executive may furnish to the Company. 

	(e)
	Severability. If any provision contained herein shall be found invalid and unenforceable, the remaining provisions of this Agreement
shall remain in full force and effect.

	(f)
	Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs,
representatives, and successors.

	(g)
	Headings. The headings and subheadings contained in this Agreement are provided solely for convenience of reference and shall not be
construed or interpreted in any way as affecting the meaning of any provision of this Agreement. 

*
* * 

IN WITNESS WHEREOF, the Executive and the Employer have executed this Agreement as of this      day of            ,
2000. 

	 	APAC CUSTOMER SERVICES, INC.
	

 	
By:	
 	

	

 	
EXECUTIVE
	

 	

 Name
 

6

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