Document:

Exhibit 10.2

 

PERSONAL AND CONFIDENTIAL

 

	
  Karen Tulloch

  	
   

  	
   

  	
  May 28, 2005

  
	
  724 DeLasalle Court

  	
   

  	
   

  
	
  Naperville, IL 60565

  	
   

  	
   

  

 

Dear Karen:

 

I am pleased to present this offer of employment to
join APAC Customer Service, Inc. (“APAC”) as Senior Vice President, Human
Resources reporting to me. The following terms will apply:

 

1.             Your start date
will be June 13, 2005.

 

2.             Your starting base
salary will be $237,500, on an annualized basis payable bi-weekly (This “base
salary” is stated for convenience only and is not intended as an annual
contract of employment.)  Your base
salary will be reviewed each year at the time when increases for executives of
APAC are considered.  At the present time
that occurs on or about April 1 of each year.

 

3.             You will be a
participant in APAC’s annual Management Incentive Compensation Plan (“MIP”) as
it exists from year to year (copy enclosed). 
We envision an opportunity of 10%-40%-80% for
threshold-target-maximum performance, respectively.  The payout of MIP will depend on APAC’s
meeting its budgeted financial performance and your meeting your individual and
team performance goals that will be established each year between you and the
executive to whom you report.

 

4.             You will be
entitled to paid vacation of four (4) weeks and will also be entitled to
participate in all employee benefit plans and programs extended to employees at
the executive level (Benefits Summary enclosed).

 

5.             Subject to the
approval of the Compensation Committee, you will be granted options to purchase
300,000 shares of APAC stock at an exercise price equal to the mean between the
high and low prices at which APAC’s common stock trades on the day such
approval is rendered, as reported by Bloomberg Financial Markets.  These options will vest at the rate of 20%
per year during the first five years of your employment.

 

6.             Upon joining the
company, you will receive an Employment Security Agreement, which outlines
additional cash compensation protection in the event of “Change in Control” of
the Company (draft copy enclosed).

 

7.             As a condition of
employment, you will sign an Agreement Protecting Company Interests, a copy of
which is enclosed.

 

 

8.             Except for (1.)
your termination of employment in connection with a “change in control” as
defined in the Employment Security Agreement referenced above, or (2.) your
termination of employment by APAC “for cause” (Defined as “(i) gross
misconduct or gross negligence in the performance of your employment duties; (ii) willful
disobedience by you of the lawful directions received from the Company or from
the person to whom you directly report or of established policies of the
Company; or (iii) commission by you 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”), and provided you
sign a then-current Waiver & Release Agreement, APAC will pay you
severance equal to the monthly amount of your then-current Base Salary during
each of the following twelve (12) months following such termination.  Severance payments will be made in accordance
with either this agreement or the prevailing change of control agreement,
whichever is more advantageous to you; but in no event will severance payments
be made under both agreements.  Such
payments will be made on APAC’s customary payroll dates in installment equal to
your regular biweekly salary, less all applicable withholding taxes.

 

9.             This offer is
extended contingent upon receipt of a completed Application for Employment,
satisfactory references, and adequate results of a background investigation.

 

10.           You hereby
represent and warrant that you are not subject to any covenants, agreements of
restrictions, including, without limitation, any covenants, agreements or
restrictions arising out of your prior employment or independent contractor
relationships, which would be breached or violated by your acceptance of this
offer of employment or by your performance of your duties.  You acknowledge that it is APAC’s express
policy to abstain from the use or disclosure of the trade secrets and
proprietary information of third parties, and you hereby expressly covenant
that you will not use or disclose trade secrets or proprietary information of
third parties while working at APAC.

 

Karen, we are excited about your joining APAC.  If you have any questions please don’t
hesitate to contact me.

 

 

Sincerely,

 

	
  APAC CUSTOMER SERVICES, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Robert J. Keller

  	
  ACCEPTED BY:

  
	
  President and Chief Executive Officer

  	
   

  
	
  SLM/ml

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Karen Tulloch

  	
   

  
	
  cc: S. Menzel

  	
   

  
	
   

  	
  Karen Tulloch                May 28,
  2005Exhibit 10.1

    
      

    

    EXHIBIT
      10.1

    

    SUMMARY
      OF ZONES, INC BOARD MEETING FEES AND BASIC COMPENSATION

    

    

    Our
      non-employee directors receive a quarterly retainer fee of $2,500, in addition
      to $1,000 for each in-person meeting of the Board of Directors they attend.
      Our
      non-employee directors also receive fees associated with the committee meetings
      they attend. The Audit Committee is comprised of its chair, John Bauer, and
      members John Carleton, Kenneth Kirkpatrick and Cathi Hatch. The Compensation
      Committee is comprised of its chair, John Carleton, and members John Bauer,
      Kenneth Kirkpatrick and Cathi Hatch. The Nominating and Corporate Governance
      Committee is comprised of its chair, John Carleton, and members John Bauer
      and
      Cathi Hatch. The Strategic Committee is comprised of Co-Chairs William Keiper
      and John Carleton. The Section 162(m) Committee is comprised of its chair,
      John
      Bauer, and member Cathi Hatch. The following summarizes the fees paid to board
      members for committee meetings:

    

    

    
      	
              Committee

            	 	
              Position

            	 	
              Compensation
                per 

              Committee
                Meeting

            
	
              Audit
                Committee

            	 	
              Chair

            	 	
              $5,000

            
	 	 	
              Member

            	 	
              $2,000

            
	 	 	 	 	 
	
              Compensation
                Committee

            	 	
              Chair

            	 	
              $1,500

            
	 	 	
              Member

            	 	
              $ 
                 750

            
	 	 	 	 	 
	
              Nominating
                and Corporate Governance Committee

            	 	
              Chair

            	 	
              $2,500

            
	 	 	
              Member

            	 	
                  
                750

            
	 	 	 	 	 
	
              Strategic
                Committee

            	 	
              Co-Chair

            	 	
              $9,000

            
	 	 	 	 	 
	
              Section
                162(m) Committee

            	 	
              Chair
                

            	 	
              $1,500

            
	 	 	
              Member
                

            	 	
                  
                750Exhibit 10.2

    
      

    

    ZONES,
      INC.

    NOTICE
      OF GRANT OF DIRECTOR STOCK OPTION

    

    The
      undersigned member of the Board of Directors (the “Optionee”)
      of
      Zones, Inc. has been granted an option (the “Option”)
      to
      purchase certain shares of Stock pursuant to the Zones,
      Inc. 2003 Equity Incentive Plan
      (the
“Plan”),
      as
      follows:

    

    
      	
              Grant
                Number:

            	 	
                 

            	 
	 	 	 	 
	
              Date
                of Option Grant:

            	 	
                 

            	 
	 	 	 	 
	
              Number
                of Option Shares:

            	 	
                 

            	 
	 	 	 	 
	
              Exercise
                Price:

            	
              $

            	
                 

            	
               
                per share

            

    

    

    
      	
              Vesting

            	
              The
                Option is fully vested and immediately exercisable. 

            
	 	 
	
              Option
                Expiration Date:

            	
              The
                date ten (10) years after the Date of Option Grant.

            
	 	 
	
              Tax
                Status of Option:

            	
              Nonqualified
                Stock Option

            

    

    

    Post-Termination
      of Service Exercise Period:
      Notwithstanding any provision to the contrary in the Stock Option Agreement,
      the
      Option will not have a post-termination of Service exercise period but will
      be
      exercisable until the Option Expiration Date. 

    

    By
      their
      signatures below, the Company and the Optionee agree that the Option is governed
      by this Notice and by the provisions of the Plan and the Stock Option Agreement.
      A copy of the Stock Option Agreement is attached to and made a part of this
      document. The Optionee acknowledges receipt of a copy of the Stock Option
      Agreement, represents that the Optionee has read and is familiar with the Plan
      and the provisions of the Stock Option Agreement, and hereby accepts the Option
      subject to all of their terms and conditions.

    

    
      	
              ZONES,
                INC.

            	 	
              OPTIONEE

            
	 	 	 	 
	
              By:
                

            	
                

            	 	
                

            
	 	 	 	
              Signature

            
	
              Its:

            	
                

            	 	
                

            
	 	 	 	
              Date

            
	
              Address:

            	
                

            	 	
                

            
	 	 	 	
              Address

            
	
                 

            	 	
                

            

    

    

    
      	
              ATTACHMENTS:

            	
              Stock
                Option Agreement and Exercise
                Notice

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