Document:

Exhibit 10.20

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made as of August 7,
2006 by CoBiz Inc., a Colorado corporation (the “Company”), and Troy R. Dumlao (“Employee”).

 

1.                                       Employment. The Company agrees to employ
Employee, and Employee agrees to work for the Company, in the capacity or
capacities specified on Exhibit A or in such other capacities with
the Company and its subsidiaries as may be determined from time to time by
the Board of Directors of the Company, on the terms and subject to the
conditions established in this Agreement. Employee will report to the Reporting
Person designated in Exhibit A, subject to change by the Company
from time to time. This Agreement and Employee’s employment by the Company
shall continue until terminated by either party pursuant to Section 5
below or until Employee’s death or Disability (terms capitalized and not
otherwise defined herein are used as defined in Exhibit B).

 

2.                                       Responsibilities of Employment. Employee shall devote his or
her full business time and effort to the performance of his or her
responsibilities under this Agreement, other than passive investments that do
not interfere with the performance of those responsibilities. Employee shall
perform his or her responsibilities diligently, faithfully and to the best
of his or her abilities. Employee shall comply with and carry out the policies,
programs and directions of the Board of Directors of the Company, including,
without limitation, the Company’s Code of Ethics and Insider Trading Policies
as in effect from time to time.

 

3.                                       Compensation. The Company will compensate
Employee for his or her services as follows:

 

(a)                                  Base Compensation. The Company will pay Employee
minimum monthly base compensation at the rate specified on Exhibit A,
payable in accordance with the Company’s normal payroll schedule. Employee’s
base compensation will be reviewed and may be increased from time to time
in the sole discretion of the Company’s Board of Directors.

 

(b)                                 Plans. Employee will be eligible to
participate in all medical, dental, vision and other employee welfare plans
maintained by the Company from time to time and available to similarly situated
employees of the Company.

 

(c)                                  Vacation. Employee will be entitled to
paid vacation each year as specified on Exhibit A, subject to the
Company’s general vacation policy as in effect from time to time.

 

(d)                                 Discretionary Bonus Plan. Employee will be eligible to
participate in such discretionary bonus plans as the Company may establish
from time to time for similarly situated employees of the Company.

 

(e)                                  Equity Incentive Plans. Employee will be eligible to
participate in such stock option and other equity incentive plans as the
Company may establish from time to time for similarly situated employees
of the Company.

 

1

 

The payment of
compensation and the provision of benefits will be subject to all applicable
federal, state and local tax withholding and reporting requirements.

 

4.                                       Reimbursement of Expenses. Employee will be entitled to
reimbursement of ordinary and necessary out-of-pocket expenses reasonably
incurred by him or her on behalf of the Company in the course of performing his
or her duties hereunder under the Company’s expense reimbursement policy applicable
to similarly situated employees, upon furnishing appropriate documentation in
accordance with such policy as in effect from time to time.

 

5.                                       Employment At Will; Termination. Employee is an at-will
employee. Either party may terminate this Agreement and Employee’s
employment hereunder at any time by giving written notice to the other party
specifying the effective date of the termination. In the case of termination by
Employee, the effective date of termination shall not be less than 30 days
after the notice is given, but the Company may accelerate the effective
date of the termination by written notice to Employee, and such accelerated
termination shall still be deemed a termination by Employee.

 

6.                                       Effect of Termination. Upon termination of this Agreement
by the Company or by Employee, including termination upon the death or
Disability of Employee, the rights and obligations of Employee, Employee’s
estate and the Company shall be as provided in this Section 6.

 

(a)                                  Compensation through Termination
Date . If
Employee’s employment with the Company is terminated, whether by the Company or
by Employee, and including any termination resulting from death or Disability,
the Company (i) will pay Employee his or her base compensation pursuant to
Section 3(a) through the effective date of termination, (ii) will
pay Employee for vacation accrued but not taken under Section 3(c) in
accordance with its vacation policy, and (iii) will reimburse Employee
pursuant to Section 4 for expenses incurred prior to the effective date of
termination. Except as specifically provided in this Section 6, the
Company will have no obligation to pay any severance, salary, benefits or other
compensation or damages at or after the date of termination.

 

(b)                                 Severance Upon Termination Without
Cause or for Good Reason.
If Employee’s employment is terminated by the Company without Cause or by
Employee with Good Reason, then, in addition to the amounts payable under Section 6(a),
the Company will pay Employee or Employee’s estate severance equal to twelve
times his or her base monthly compensation under Section 3(a) as in
effect on the effective date of termination.

 

(c)                                  Additional Severance for Bonus. If severance is payable under Section 6(b) and
if Employee received a bonus from the Company in respect of the last full
fiscal year ending prior to the effective date of termination, the Company
shall pay to Employee or Employee’s estate additional severance equal to the
greater of (i) the bonus paid to Employee in respect of such last full fiscal
year and (ii) the average of the bonuses paid to Employee in respect of
each year in the three-year period ending with such last full fiscal year (or
if Employee had not been employed for all of that three-year period, the
average of the bonuses paid with respect to each full fiscal year in which
Employee was employed), in each case, pro rated to the effective date of the
termination.

 

2

 

(d)                                 Payment. All severance under Sections 6(b) and
(c) will be payable in a lump sum within 30 days after the effective date
of termination, subject to Sections 6(i) and (j) below.

 

(e)                                  Payments in Lieu of Health
Insurance Plans.
If severance is payable under Section 6(b), in addition to the payments
required by Sections 6(b) and (c), if Employee properly elects pursuant to
COBRA to continue coverage under the Company’s health insurance plans in which
he or she was participating as of the effective date of termination, for twelve
months following termination, the Company will reimburse Employee (within 15
days after submission to the Company of proof of payment) an amount equal to (i) the
monthly COBRA premiums paid by Employee for such coverage, including any
administrative charge imposed by the Company, minus (ii) the monthly
amounts that Employee would have paid for coverage under those plans if his or
her employment had not been terminated. If Employee does not elect to continue
coverage pursuant to COBRA, the Company will not be obligated to pay to
Employee or for Employee’s benefit any amount in respect of health insurance
after termination of employment. Employee acknowledges that the Company is not
obligated to provide insurance coverage after termination of his or her
employment and that it is solely Employee’s responsibility to elect COBRA
coverage or obtain alternative insurance following any termination. The Company’s
obligation to make payments under this Section 6(e) shall terminate
if Employee becomes eligible to participate in any health insurance plan of a
subsequent employer before the end of the twelve-month period following
termination, without regard to the relative levels of benefits provided by the
Company’s plans and the plans of such subsequent employer.

 

(f)                                    Severance Upon Death or
Disability. If
Employee’s employment is terminated as a result of Employee’s death or
disability, the Company shall pay severance to Employee or his or her estate in
the amounts and at the times provided in Sections 6(b) through (e) above,
and Sections 6(i) and (j) shall not apply to such severance.

 

(g)                                 Increased Severance Upon
Termination Following Change of Control. If severance is payable under Section 6(b), and if
notice of termination was given by the Company or Employee within 365 days
after a Change of Control, (i) the severance payable under Section 6(b) shall
be 12 times Employee’s base monthly compensation under Section 3(a) as
in effect on the effective date of termination, (ii) the severance payable
under Section 6(c) shall be the full amount of the bonus or average
bonus described therein and shall not be pro rated to the date of termination
and (iii) the reimbursement of COBRA premiums pursuant to Section 6(e) shall
continue for 12 months following termination (subject to the last sentence of Section 6(e)).
Increased severance under clauses (i) and (ii) of this Section 6(g) shall
be payable as provided in Section 6(d).

 

(h)                                 Severance Conditioned on Release. The right of Employee or
Employee’s estate to receive severance and other payments as provided in
Sections 6(b) through 6(g): (i) will be contingent upon Employee’s or
Employee’s estate’s execution of a release of all claims against the Company
and its Affiliates (other than the right to receive payments under this Section 6)
in form and substance and under procedures reasonably believed by the
Company to be adequate to effectively waive all such claims under applicable
laws and (ii) will automatically terminate upon any breach by Employee of Section 7
or 8 of this Agreement. The Company will

 

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provide the form of such release to
Employee or Employee’s estate within a reasonable time after any termination as
a result of which severance is payable. If the release does not become fully
and finally effective until legally prescribed periods have elapsed,
notwithstanding any other provision of this Agreement, no severance shall be
payable until all such periods have elapsed and the release has become fully
and finally effective.

 

(i)                                     Deferral Based on Capital
Requirements. The
Company may elect to defer any payment of severance and other payments
under Sections 6(b), (c) and (g) that may become due to Employee
or Employee’s estate if, at the time the payment becomes due, the Company or
any bank owned by the Company is not in compliance with any regulatory-mandated
minimum capital requirements or if making the payments would cause the Company’s
or any such bank’s capital to fall below such minimum capital requirements. In
this event, the Company will resume making the payments as soon as it can do so
without violating such minimum capital requirements. No interest shall be
payable on any payments deferred under this Section 6(i). This Section 6(i) shall
not apply to the extent that any such deferral would result in the imposition
of a tax under Section 409A of the Internal Revenue Code.

 

(j)                                     Delay Based on 409A. If Employee is a “key employee”
(as defined in Section 409A of the Internal Revenue Code) at the time of
termination, the payment of all amounts due under Sections 6(b), (c) and (g) will
be delayed for six months as and to the extent required by Section 409A. The
amounts that would have been payable during that six-month period shall be
payable in a lump sum within 10 days after the end of that six-month period and
any payments due after that six-month period shall be made as provided in this
Agreement. No interest shall be payable on any payments delayed under this Section 6(j).

 

7.                                       Protective Covenants.

 

(a)                                  Non-Solicitation. Employee agrees that, without
the Company’s prior written consent, during the period commencing on the date
hereof and ending on the first anniversary of the effective date of termination
of Employee’s employment with the Company, neither Employee nor any Affiliate
of Employee will:

 

(i)                                     Solicit or induce any Person who
is or was during the six-month period preceding such solicitation or inducement
an employee or agent of the Company or of any Affiliate of the Company to
terminate such Person’s relationship with the Company or such Affiliate or to enter
into an employment or agency relationship with any Person other than the
Company or an Affiliate of the Company;

 

(ii)                                  Solicit or induce any customer
of the Company or of any Affiliate of the Company to terminate or reduce the
extent of such customer’s business with the Company or such Affiliate or to
become a customer of any other Person in respect of products or services
offered by the Company or any of its Affiliates; or

 

(iii)                               Make any statements or take any
action that could reasonably be expected to damage the reputation, standing or
business of the Company or of any Affiliate of the Company.

 

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(b)                                 Judicial Modification. Employee acknowledges and
agrees that the restrictions set forth in this Section 7 are reasonable
and necessary in duration and scope to protect the legitimate interests and
expectations of the Company. If, contrary to the agreement and intent of the
parties, a court of competent jurisdiction should find that any such
restriction is unenforceable as written, the parties intend and agree that such
restriction will be deemed modified to the minimum extent necessary to render
it enforceable and will be enforced as so modified.

 

8.                                       Confidentiality. Except as may be required
in connection with his or her employment under this Agreement, Employee will
not, directly or indirectly, use or disclose to any other Person any
information of a confidential or proprietary nature belonging or relating to
the Company or any of its Affiliates, or any information the disclosure of
which could reasonably be expected to have an adverse effect on the Company,
its businesses, property or financial condition, including but not limited to
information concerning the Company’s methods of operation, techniques, know-how,
plans, policies, customers, suppliers, representatives or other matters of any
kind or description relating to the products, services, or businesses of the
Company or any of its Affiliates. All records, files, documents, equipment and
the like relating to the Company’s businesses which Employee may prepare,
use, possess or observe shall be and remain the sole property of the Company,
and upon termination of his or her employment hereunder for any reason,
Employee shall return to the Company any items of that nature and any copies
thereof which he or she may have in his or her possession or control.

 

9.                                       Indemnity.

 

(a)                                  Indemnification. Company will indemnify
Employee (and, upon his death, his heirs, executors and administrators) to the
fullest extent permitted by law against all losses, liabilities, costs and
expenses, including reasonable attorneys’ fees, court and investigative costs,
judgments, fines and amounts paid in settlement (collectively, “Losses”)
reasonably incurred by him in connection with or arising out of any pending,
threatened or completed action, suit or proceeding in which he may become
involved by reason of his having been an officer or director of the Company or
any Affiliate of the Company. The indemnification rights provided for herein
are not exclusive and will supplement any rights to indemnification that
Employee may have under any applicable bylaw or charter provision of
Company or any Affiliate of the Company or any applicable statute.

 

(b)                                 Advancement of Expenses. In the event that Employee
becomes a party, or is threatened to be made a party, to any pending,
threatened or completed action, suit or proceeding for which the Company is
required to indemnify him or her, the Company will, to the fullest extent
permitted by law, advance all Expenses incurred by Employee in connection with
the investigation, defense, settlement or appeal of any threatened, pending or
completed action, suit or proceeding, subject to receipt by the Company of a
written undertaking from Employee to reimburse the Company for all amounts
actually paid by the Company to or on behalf of Employee in the event it shall
be ultimately determined that the Company is not obligated to indemnify
Employee for such amounts, and to assign to the Company all rights of Employee
to indemnification under any policy of directors and officers liability
insurance to the extent of the amounts actually paid by Company to or on behalf
of Employee.

 

5

 

(c)                                  Litigation. Unless precluded by an actual
or potential conflict of interest, Company will have the right to recommend
counsel to Employee to represent him in connection with any claim covered by
this Section 9. Further, Employee’s choice of counsel, his decision to
contest or settle any such claim, and the terms and amount of the settlement of
any such claim will be subject to Company’s prior reasonable approval in
writing.

 

10.                                 Injunctive Relief. Employee acknowledges that
irreparable injury will result to the Company and its business in the event of
a breach of Section 7 or 8, that damages caused by such breach would be
difficult if not impossible to ascertain and that any remedy at law for such
breach will be inadequate. Employee agrees that the Company will be entitled to
injunctive relief to prevent or stop any such breach, without the necessity of
proving actual damage to the Company or of posting any bond or other security.

 

11.                                 Arbitration. Any dispute arising out of
this Agreement or connected with Employee’s employment will be submitted to
binding arbitration in Denver, Colorado. The arbitration will be conducted by
the Judicial Arbiter Group or, if the Judicial Arbiter Group is not available,
by the American Arbitration Association or another arbitral body selected by
the parties. The decision of the arbitrator may be entered as a judgment
in any court of competent jurisdiction. Notwithstanding this arbitration
provision, the Company will be entitled to apply to any court of competent
jurisdiction for injunctive relief under Section 10.

 

12.                                 Governing Law; Interpretation. This Agreement will be
governed by and construed in accordance with the laws of the State of Colorado.
The titles of the Sections have been inserted for convenient reference only and
will not affect the construction of this Agreement.

 

13.                                 Severability. The invalidity or
unenforceability of any provision of this Agreement will not affect the
validity or unenforceability of any other provision. If any provision is found
to be invalid or unenforceable as written, it will be deemed modified to the
minimum extent necessary to render it valid and enforceable.

 

14.                                 Benefit. This Agreement may not be
assigned by either party without the written consent of the other, and any
assignment without such consent will be null and void; provided that the
Company may assign this Agreement, without Employee’s consent, to any
successor to all or substantially all of the Company’s business and assets or
to any successor to all or substantially all of the business and assets of the
Affiliate of the Company for which Employee primarily worked. Subject to that
limitation, this Agreement will be binding upon and inure to the benefit of the
parties and their heirs, personal representatives, successors and assigns.

 

15.                                 Notices. All notices given under this
Agreement will be in writing. Any notice may be transmitted by any means
selected by the sender. A notice that is mailed to a party at its address given
below, registered or certified mail, return receipt requested, with all postage
prepaid, will be deemed to have been given and received on the earlier of the
date reflected on the return receipt or the third business day after it is
posted. A notice sent by facsimile transmission to a party at its facsimile
number given below will be deemed to have been given and received upon
confirmation of transmission by the sender’s facsimile machine. A notice
transmitted by recognized overnight courier service to a party at its address
given below will be

 

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deemed given and received on the first
business day after it is delivered to the courier. A notice given by any other
means will be deemed given and received only upon actual receipt. The addresses
and facsimile numbers of the parties for notice purposes are as follows:

 

If to the Company:

 

CoBiz Inc.

821 – 17th Street

Denver, Colorado 80202

Attn: Lyne Andrich

Facsimile No.: (720) 264-1958

 

If to the Employee:

 

To the address or facsimile number set forth
on Exhibit A.

 

Either party may change his, her or its
address or facsimile number for notice purposes by written notice to the other
party.

 

16.                                 Modification. No failure by either party to
insist upon the strict performance of this Agreement on one or more occasions
will constitute a waiver of any right or remedy hereunder. This Agreement may be
amended, and any right or remedy hereunder may be waived, only in a
writing signed by the party against whom the amendment or waiver is asserted.

 

17.                                 Waiver of Other Benefits. Employee irrevocably waives any
right he might otherwise have to receive any severance, damages or other
post-termination payments or benefits from the Company, except for those
provided in this Agreement. This waiver expressly includes, without limitation,
any amounts payable under any severance plan or policy adopted by the Company.

 

18.                                 Survival. The provisions of Sections 6
(insofar as they require payments after termination) and 7 through 19 shall
survive the termination of this Agreement.

 

19.                                 Entire Agreement. This Agreement sets forth the
entire agreement and understanding of the parties with respect to the subject
matter hereof and supersedes any and all prior and contemporaneous
negotiations, understandings and agreements with regard to the subject matter
hereof, whether oral or written. In entering into this Agreement, neither party
has made or relied upon any representation or promise not set forth herein.

 

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IN WITNESS WHEREOF, the parties have executed
this Employment Agreement as of the day and year first above written.

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  CoBiz Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Bangert

  	
   

  
	
   

  	
  Name: Steven
  Bangert

  
	
   

  	
  Title:    CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Troy R. Dumlao

  	
   

  
	
   

  	
   

  	
  Troy R. Dumlao

  
					

 

8

 

EXHIBIT A

 

TERMS OF EMPLOYMENT

 

 

	
  Name of Employee:

  	
  Troy R. Dumlao

  	
   

  
	
   

  	
   

  	
   

  
	
  Capacity(ies):

  	
  1st Vice President &
  Controller

  	
   

  
	
   

  	
   

  	
   

  
	
  Reporting Person:

  	
  Lyne Andrich

  	
   

  
	
   

  	
   

  
	
  Minimum Base
  Compensation:

  	
  $8,750.00 per
  month

  
	
   

  	
   

  	
   

  
	
  Vacation:

  	
   

  	
   4 weeks per
  year

  
	
   

  	
   

  	
   

  
	
  Address and
  Facsimile

  	
   

  
	
  Number of
  Employee:

  	
  Troy R. Dumlao

  	
   

  
	
   

  	
  821 17th Street

  	
   

  
	
   

  	
  Denver, CO 80202

  	
   

  
	
   

  	
  (720) 264-1956

  	
   

  
				

 

A-1

 

EXHIBIT B

 

Definitions

 

“Affiliate” means, with respect to a specified Person, (i) any other
Person directly or indirectly controlling, controlled by or under common
control with the specified Person, (ii) any trust in which the specified
Person holds 10% or more of the beneficial interest, as beneficiary, settler or
otherwise, (iii) any member of the immediate family of the specified
Person, (iv) any director, executive officer, manager, member, partner or
trustee of the specified Person, or (v) any other Person in which the
specified person or any Affiliate of the specified Person owns a beneficial
interest of 10% or more.

 

“Cause” for the termination by the Company of Employee’s employment
means (i) a breach by Employee of Section 7 or 8 of the Agreement, (ii) a
breach of any other provision of this Agreement by Employee which, if curable,
has not been cured within 15 days after notice from the Company, (iii) theft
or embezzlement from or other dishonesty involving the Company by Employee, (iv) the
commission by Employee of a crime involving moral turpitude or constituting a
felony, (v) gross negligence or willful misconduct with respect to
Employee’s duties and responsibilities to the Company, (vi) the willful
failure or refusal of Employee to perform his duties under this Agreement
or to carry out the lawful instructions of the Reporting Person or Board of
Directors, (vii) a material violation of the standards of conduct or code
of ethics established by the Company or (viii) Employee engages in
self-dealing or attempts to obtain any improper personal benefit or profit from
the Company or any transaction in which the Company or any Affiliate of the
Company has an interest.

 

“Change of Control” of the Company shall be deemed to have occurred if:
(i) any person (as such term is defined in Section 13(d) or 14(d) of
the Securities Exchange Act of 1934, as amended (the “1934 Act”)), other than a
person who is a shareholder of the Company as of the date of this Agreement,
acquires beneficial ownership (within the meaning of Rule 13d-3
promulgated under the 1934 Act) of more than 50% of the combined voting power
of the then outstanding voting securities of the Company; or (ii) the
Company merges or consolidates with or into another entity if the shareholders
of the Company immediately before such merger or consolidation do not,
immediately after such merger or consolidation, own, directly or indirectly,
more than 50% of the combined voting power of the then outstanding voting
securities of the entity resulting from such merger or consolidation in
substantially the same proportion as their ownership of the combined voting
power of the outstanding securities of the Company immediately before such
merger or consolidation; or (iii) the sale or other disposition of all or
substantially all of the assets of the Company or CoBiz Bank, N.A.
Notwithstanding the foregoing, a Change of Control will not be deemed to have
occurred: (x) solely because more than 50% of the combined voting power of the
then outstanding voting securities of the Company are acquired by a trustee or
other fiduciary holding securities under one or more employee benefit plans
maintained for employees of the Company or its subsidiaries; or (y) if Employee
agrees in writing to waive a particular Change of Control for the purposes of
this Agreement.

 

“Disability” has the meaning given to that term (or the most closely
analogous term) in the Company’s long-term disability insurance policy as in
effect at the relevant time. If no such

 

B-1

 

policy is in effect, “Disability” means a
mental or physical condition that prevents Employee from performing the
essential functions of his or her position hereunder, with or without
reasonable accommodations by the Company, as determined by the Company in its
discretion.

 

“Good Reason” for the termination by Employee of his or her employment
means (i) Employee is removed from all of the capacities described in Exhibit A,
other than for Cause, and is not offered another position with the Company or
an Affiliate of the Company that is commensurate with Employee’s education,
experience and abilities; (ii) the Company decreases Employee’s base
compensation or arbitrarily and capriciously decreases Employee’s bonus; or (iii) the
Company transfers Employee to a location outside the metropolitan area in which
Employee’s employment was based on the date of this Agreement; provided that
(x) no such action or event shall constitute Good Reason if Employee consents
to the action or event, whether before, at or after the time that it is taken,
(y) no such action or event shall constitute Good Reason unless Employee gives
written notice to the Company within 30 days after the action or event, which
notice shall specify the action or event and indicate that Employee believes it
constitutes Good Reason as defined herein, and the Company fails to cure the
action or event within 30 days after such notice and (z) a termination by
Employee of his or her employment shall not be a termination for Good Reason
unless notice of the termination is given by Employee within 90 days after the end of the 30-day period established in
clause (y) above.

 

“Person” means any individual and any corporation, partnership, trust,
unincorporated organization, association, limited liability company or other
entity.

 

B-2Exhibit 10.1

This Agreement (the “Agreement”) is made as
of August 4, 2006, between SITEL Corporation (“SITEL”) and JANA Partners LLC (“JANA”, and with SITEL, the “Parties”).

1.                    Appointment
of Directors.  In order that certain
individuals designated by JANA as set forth below may join SITEL’s Board of
Directors (the “Board”), the Parties agree, provided with respect to SITEL’s
obligations in this Section 1 that there has been no material breach of this
Agreement by JANA, as follows:

(a) 
(i) Kelvin C. Berens shall resign from the Board, (ii) the Board shall
appoint Stephen L. Key as a Class II Director on the Board and (iii) the Board
shall appoint Robert H. Getz as a Class I Director on the Board.  Such resignation and appointments shall be
completed and effective no later than ten (10) business days (or such shorter
period of time as the Parties may agree) after the date hereof.

(b)  Upon the earlier of (i) six (6) months from
the date hereof and (ii) delivery of a written request from JANA to SITEL and
the approval of a majority of the Board of such request (the “Kubat Resignation
Date”), (A) George J. Kubat shall resign from the Board and (B) the Board shall
appoint Charles Penner as a Class III Director on the Board to fill the
resulting vacancy.  Such resignation and
appointment shall be completed and effective no later than five (5) business
days (or such shorter period of time as the Parties may agree) after the Kubat
Resignation Date, provided, however, that such five (5) day time period shall
be extended as necessary to allow the following events to occur if:  (x) JANA has not yet provided the Board with
the information regarding Charles Penner required to be disclosed for board
candidates in a proxy statement related to the election of such directors under
the federal securities laws and allowed the Board at least ten (10) business
days to review, (y) JANA has not yet provided evidence sufficient to allow the
Board to determine in its good faith judgment that Stephen L. Key or one of the
other JANA Designees (as defined below) qualifies as an “audit committee
financial expert” under applicable Securities and Exchange Commission (the “SEC”)
rules and allowed the Board at least ten (10) business days to review or (z) at
least one JANA Designee determined to be an “audit committee financial expert”
pursuant to the preceding clause (y) (provided that the Board shall make such
determination promptly and in good faith) has not yet informed the Board that
he or she is willing and able to serve as the Chairman of SITEL’s Audit
Committee.  The Parties will arrange for
an in-person or telephonic meeting between members of the Board’s
Nominating/Corporate Governance Committee and Charles Penner during such period
if such meeting has not already occurred prior thereto.

(c)  In
the event that Charles Penner is unwilling or unable to serve on the Board
prior to his appointment thereof or is determined not to be an independent
director pursuant to the New York Stock Exchange listing standards in the
reasonable good faith judgment of the Board, JANA shall promptly designate an
individual with reasonably adequate business experience and of reasonably good
reputation and character and such individual shall be appointed within ten (10)
business days of such designation (provided that such period shall be extended
in the same manner provided for in paragraph (b) above as necessary) and such
appointment shall be subject to the same right of replacement until such
vacancy has been filled 

 

 

pursuant to this Agreement.  The
individuals appointed to the Board pursuant to this Section 1 shall be referred
to herein as “JANA Designees”.

(d) 
Prior to the appointment to the Board of the JANA Designees appointed
pursuant to paragraph (a) above, the Board shall be permitted to reclassify,
through a series of resignations and appointments to new classes, its existing
directors to facilitate the appointment of each JANA Designee to the applicable
class set forth in paragraphs (a) or (b) above, provided with respect to such
reclassification that (i) only non-management members of the Board shall resign
or be appointed, (ii) no individual will be appointed who is not currently a
member of the Board and (iii) directors will be allocated such that, following
the appointment of the JANA Designees, the directors will be evenly divided
among the three classes of directors on the Board.

(e) 
The JANA Designees will be governed by the same protections and
obligations regarding confidentiality, conflicts of interest, fiduciary duties,
trading and disclosure policies and other governance guidelines, and shall have
the same rights and benefits as are applicable to the independent directors on
the Board.

(f) 
With respect to SITEL’s next annual meeting after the date hereof
(expected to be held in 2006) or any special meeting held prior thereto or in
lieu thereof where the meeting agenda includes the election or re-election of
one or more directors to the Board (the “2006 Shareholders Meeting”), the Board
shall nominate each JANA Designee who has been appointed as a director in a
class whose term expires at the 2006 Shareholders Meeting to continue serving
as a director of such class and recommend in SITEL’s proxy statement for the
2006 Shareholders Meeting and at the 2006 Shareholders Meeting that shareholders
vote for such JANA Designee’s election.

(g) 
The Board shall not change or revoke any recommendation referred to in
paragraph (f) above or take any action inconsistent with such paragraph, and
shall not, nor encourage any third party to, propose or recommend, any other
matters related to the Board, including its size and composition, at the 2006
Shareholders Meeting or any meeting of shareholders prior thereto.  Nothing contained herein shall require SITEL
to hold the 2006 Shareholders Meeting or to hold the 2006 Shareholders Meeting
prior to any other meeting of shareholders where the election or re-election of
directors is not on the agenda.

2.                    Voting Activities.  Provided there has been no material breach of
this Agreement by the other Party:

(a)  At
the 2006 Shareholders Meeting, provided that such slate consists only of
current independent members of the Board and/or JANA Designees appointed to the
Board in accordance with Section 1 hereof, JANA shall cause all shares of
voting stock of SITEL beneficially owned by JANA or any of its affiliates or
associates (as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) (collectively, “Affiliates”), as of the record
date for such meeting, to be present for quorum purposes and to be voted in
favor of the slate of directors that the Board has nominated for election to
the Board.  In addition, upon SITEL’s
filing with the SEC its proxy statement for the 2006 Shareholders Meeting, JANA
shall 

 

 

provide a statement in support of such slate of directors in a form and
substance to be reasonably agreed with SITEL to be included in a public
statement released by SITEL.

(b) 
Neither JANA nor any of its Affiliates will file proxy soliciting
materials or solicit proxies with respect to the 2006 Shareholders
Meeting.  In addition, beginning on the
date hereof and continuing for one (1) year, other than as set forth in this
Agreement:  (i) neither JANA nor any of
its Affiliates will, and neither it nor its Affiliates will assist, encourage
or advise others to, request a special meeting or an annual meeting of SITEL’s
shareholders or submit, or participate in, any shareholder proposal to SITEL or
any “shareholder access” proposal that may be adopted by the SEC, (ii) JANA
shall cause all shares of voting stock of SITEL beneficially owned by JANA or
any of its Affiliates as of the record date of any special meeting or annual
meeting  (other than the 2007
Shareholders Meeting (as defined below)) held during such period to be present
for quorum purposes and to be voted in accordance with the Board’s
recommendation with respect to any shareholder proposal to SITEL or any “shareholder
access” proposal that may be adopted by the SEC, (iii) neither Party nor its
Affiliates will make any public statement regarding the other Party or such
other Party’s officers, directors or employees (except as required by law or by
subpoena, civil investigative demand or similar legal process in the opinion of
its counsel and only after prior notice to and, to the extent practicable,
consultation with the other Party; provided, however, that a public statement
shall not be deemed to be legally required if such legal requirement would not
have arisen but for voluntary conduct of such Party or its representatives) unless
approved in writing in advance by the other Party and (iv) neither Party or its
Affiliates will enter into any discussions, negotiations, arrangements or
understandings with any third party with respect to any of the foregoing
restrictions applicable to such Party, or otherwise form, join or in any way
participate in a “group” (as defined in Section 13(d)(3) of the Exchange Act)
in connection with any of the foregoing restrictions applicable to such Party.

Notwithstanding anything herein to the contrary,
(i) JANA may submit notice of any shareholder business and any director
nominations in regards to SITEL’s next annual meeting after the date of the
2006 Shareholders Meeting (which next meeting is expected to be held in 2007)
or any special meeting held in lieu thereof (the “2007 Shareholders Meeting”),
provided that such notice may be submitted no more than five (5) calendar days
prior to the date that such notice is required pursuant to SITEL’s bylaws in
order to be timely and (ii) the restrictions in clauses (iii) and (iv) of the
immediately preceding paragraph shall not apply to either Party following the
delivery of any such notice by JANA. 
Nothing contained herein shall require SITEL to hold the 2007 Shareholders
Meeting before the one (1) year anniversary of the date of the 2006
Shareholders Meeting, and JANA agrees that it will not request or take any
action seeking to cause SITEL to hold such meeting before such anniversary.

Notwithstanding anything herein to the
contrary, (i) SITEL agrees to issue a press release within two (2) business
days following the execution of this Agreement substantially in the form
attached as Exhibit A, (ii) each Party may disclose the terms of this Agreement
and other required information in a Form 8-K or Schedule 13D, as applicable,
and (iii) each Party may in good faith publicly disclose the terms of this
Agreement and respond to questions relating 

 

 

thereto, provided that neither Party will make any disparaging
statements regarding the other Party or its directors, officers or employees in
such responses.

3.                    No
Waiver.  No failure or delay by
either Party in exercising any right or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial waiver thereof preclude any
other or further exercise thereof or the exercise of any other right or remedy
hereunder.

4.                    Injunctive
Relief.  Each Party acknowledges and
agrees that, because of the unique nature of this Agreement, the other Party
would suffer irreparable harm in the event of a breach by such Party of any of
its obligations under this Agreement, such that monetary damages would be
inadequate to compensate the non-breaching Party for such a breach.  Each Party agrees that under such
circumstances the other Party shall be entitled to injunctive relief, in
addition to any other appropriate relief at law to which such Party shall be
entitled, and waives any requirement for the securing or posting of any bond in
connection with such remedy.

5.                    Costs;
Attorneys’ Fees.  If any suit or
other action is commenced to construe or enforce any provision of this
Agreement, the prevailing Party, in addition to all other amounts such Party
shall be entitled to receive from the non-prevailing Party to such action,
shall be awarded reasonable attorneys’ fees and court costs.

6.                    Notice.  Notices and other communications hereunder
shall be in writing and shall be effective when received by express delivery or
facsimile:

	
  If to JANA, to

  	
  If to SITEL, to

  
	
  Charles Penner

  	
  Teresa Beaufait

  
	
  JANA Partners
  LLC

  	
  SITEL Corporation

  
	
  200 Park Avenue,
  Suite 3300

  	
  7277 Communications Drive

  
	
  New York, NY
  10166

  	
  Omaha, NE 68122

  
	
  Phone: (212)
  692-7645

  	
  Phone: (402) 963-6423

  
	
  Facsimile: (212)
  696-7695

  	
  Facsimile: (402) 963-2699

  

 

7.                    Miscellaneous.  This Agreement (i) shall be governed by, and
construed in accordance with, the laws of the State of New York applicable to
contracts entered into and to be performed wholly within said State, (ii)
constitutes the entire agreement of the Parties hereto with respect to the subject
matter hereof, superseding all prior agreements, written or oral, other than
the Confidentiality Agreement between the Parties dated July 24, 2006, the
Confidentiality Agreement between the Parties dated March 2, 2006, and the
Shareholder Meeting Notice Agreement dated March 16, 2006, as amended on June
9, 2006, (iii) may not be amended, except in writing, (iv) may be executed in
counterparts, (v) shall be binding upon and inure to the benefit of each Party’s
successors and permitted assigns, (vi) may not be assigned without the prior
written consent of the other Party and (vii) shall be enforceable,
notwithstanding the unenforceability of any particular provision hereof, with
respect to all other provisions hereof. 
This Agreement does not amend or supersede any existing agreement
between SITEL and any affiliate of JANA.

 

 

IN WITNESS WHEREOF, the Parties have executed
this Agreement as of the date first above written.

	
   

  	
  SITEL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JANA PARTNERS
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  ACKNOWLEDGED AND
  AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  KELVIN C. BERENS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GEORGE J. KUBAT

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

 

EXHIBIT A

SITEL CORPORATION AND JANA PARTNERS LLC ANNOUNCE SETTLEMENT AND NEW

BOARD MEMBERS

Omaha,
NE — August [•], 2006 - SITEL Corporation (NYSE:SWW), a
leading global provider of outsourced customer services, and JANA Partners LLC
(“JANA”), the Company’s largest shareholder, announced today that they have
agreed to a settlement and the addition to the Company’s board of directors of
Robert H. Getz and Stephen L. Key, both designated by JANA, and the addition of
a third JANA designee within six months.

Pursuant
to an agreement entered into on August 4, the Company’s board has approved a
reconstituted board consisting of Cyrus F. Freidheim, Jr., Nigel T. Gourlay and
Mr. Getz as Class I Directors with terms to expire at the Company’s 2008 annual
meeting of stockholders; Rohit M. Desai, David J. Hanger and Mr. Key as Class
II Directors with terms to expire at the Company’s 2006 annual meeting of
stockholders; and Mathais J. DeVito, George J. Kubat and James F. Lynch as
Class III Directors with terms to expire at the Company’s 2007 annual meeting
of stockholders.  Kelvin C. Berens has
resigned from the board after eleven years of distinguished service.  The transition in membership of the board was
effective on August 4, 2006. In addition, within the next six months, Mr. Kubat
will resign from the board and Charles Penner will be appointed to fill the
resulting Class III Director vacancy.

Mr.
Getz is a private investor and a Managing Director at Cornerstone Equity
Investors, LLC, a private equity firm which Mr. Getz co-founded in 1996.  Prior to that, Mr. Getz was a Managing
Director and Partner with Prudential Equity Investors, a private equity firm
which he joined in 1987 following his employment at The Prudential Investment
Corporation from 1985 to 1987.  Mr. Getz
also serves as a director of Novatel Wireless, Inc. and Haynes International
Inc.  Mr. Key, since 2003, has been the
sole proprietor of Key Consulting, LLC, a management and financial consulting
business, and is the vice chairman and a member of the advisory board of J.D.
Watkins Enterprises, Inc., where he also served as Chief Financial Officer from
2001 to 2006.  Mr. Key served as the
Chief Financial Officer and Executive Vice President of Textron, Inc. from 1995
to 2001, as the Chief Financial Officer and Executive Vice President of
ConAgra, Inc. from 1992 to 1995, and as Managing Partner of Ernst & Young’s
New York office from 1988 to 1992, after joining Ernst & Young in
1968.  Mr. Key also serves on the board
of directors of 1-800-Contacts, Inc. and Greenhill & Co., and is a trustee
of the Rhode Island School of Design.

As
part of the agreement, JANA has agreed to abandon its previously announced
intent to nominate directors for election at the Company’s 2006 annual
meeting.  In addition, JANA has agreed
not to take certain actions for a one year period and to support the slate of
directors nominated for election by the Company’s board at the 2006 annual
meeting of stockholders, subject to the terms of the agreement which will be
incorporated by reference on Form 8-K to be filed by the Company this week.

About
SITEL Corporation

SITEL
is a leading global provider of outsourced customer support services. On behalf
of many of the world’s leading organizations, SITEL designs and improves
customer contact models across its clients’ customer acquisition, retention and
development cycles. SITEL manages approximately two million customer
interactions per day via the telephone, e-mail, Internet and traditional mail.
SITEL has approximately 39,000 employees in 90 global contact centers,
utilizing more than 32 languages and 

 

 

dialects
to serve customers in 56 countries. SITEL is a leader in the contact center
industry. Please visit SITEL’s website at www.sitel.com
for further information.

About
JANA Partners LLC

JANA
Partners LLC is a private money management firm with offices in New York and
San Francisco and over $5 billion in assets.

FROM: 

SITEL Corporation

7277 World Communication Drive

Omaha, NE 68122

CONTACTS:

Bill Sims, Investor Relations 

402-963-6810

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