Document:

EXHIBIT 10.2

 

[*] = Certain confidential
information contained in this document, marked with brackets, has been omitted
and filed separately with the Securities and Exchange Commission pursuant to a
request for confidential treatment made pursuant to Rule 24b-2 under the
Securities Exchange Act of 1934, as amended.

 

Order No. 20070105.006.S.018

 

Telepresence Order Processing

 

Between

 

StarTek, Inc.

 

And

 

 AT&T Services, Inc.

 

Proprietary Information

The information contained in
this Agreement is not for use or disclosure outside AT&T, Supplier, their
Affiliates and their third party representatives, except under written
agreement by the contracting Parties.

 

 

Agreement
No. 20070105.006.C

Order
No. 20070105.006.S.018

TP
Order Processing

 

Order No. 20070105.006.S.018

 

This
Order, effective on the date when signed by the last Party (“Effective Date”)
is by and between StarTek, Inc., a Delaware corporation (“Supplier”) and
AT&T Services, Inc., a Delaware corporation (“AT&T”), each of
which may be referred to in the singular as “Party” or in the plural as “Parties,”
and shall be governed pursuant to the terms and conditions of Agreement Number
20070105.006.C (the “Agreement”).  Any
terms and conditions in this Order that modify or change the terms and
conditions of Agreement Number 20070105.006.C shall apply to this Order only.

 

1.                                       Description of Material and/or Services:

 

Supplier
shall provide support of ATS — AT&T Telepresence Services and Support (“Program”), pursuant to Attachment A
entitled “STATEMENT OF WORK”, dated April 1, 2010 (“Work”)  attached hereto and hereby made a part of this Order.

 

2.                                       Duration of Order:

 

This Order will continue in effect for a term expiring on March 31,
2011, unless it is Cancelled or Terminated before that date.

 

AT&T shall have the right to extend the duration period specified
in this Order for one  additional twelve
(12) month period by giving Supplier forty-five (45) days prior written notice
(in advance of the expiration of the initial term), at prices no greater than
those set forth in this Order.

 

3.                                       Location:

 

Supplier
shall perform the Work at the following locations:  Greeley or
Grand Junction, CO

 

4.                                       Pricing:

 

The
following Pricing schedule shows the amounts to be paid to Supplier for Work to
be performed under this Order for Full Time Equivalent (“FTE”) Agents.

 

Invoices
shall be submitted monthly based on [*] and shall exclude any non-production
activity, including but not limited to the following: lunchtime, break time,
holidays, vacations and sick-time.

 

	
  Description

  	
   

  	
  Hourly Rate

  	
   

  
	
  Agent FTE [*] Rate

  	
   

  	
  $

  	
  [*]

  	
   

  
	
  Area Manager

  	
   

  	
  $

  	
  [*]

  	
   

  
	
  * [*] Training — pursuant to Section D
  Training

  	
   

  	
  $

  	
  [*]

  	
   

  

 

Proprietary
Information

The
information contained in this Agreement is not for use or disclosure outside
AT&T, Supplier, their Affiliates and their third party representatives,
except under written agreement by the contracting Parties.

 

1

 

*Does
not include refresher, continuation or attrition training, which shall be at
[*].

 

Supplier
agrees that the rates provided above are all inclusive of the costs for the
Program, which include, but are not limited to the following items, and no
other charges shall be billed to AT&T.

 

1.
 Training [*]

2.  Dedicated Reports Analyst

4.  Dedicated Process Managers

5.  Dedicated Escalation Managers

6.  Dedicated Supervisors

7.  Travel and Living

8.  Pagers

9.  Programming (e.g. scripting, legacy
programming and all programming production support and maintenance functions)

10.
Program / Account management functions and personnel

11.
Development and issuance of reports

12.
Recruiting of Order Specialist

13.
Processing Downtime Forms

14.
System Access and Requirements

15.
Systems — Managing and maintaining equipment and access

16.
Postage

17.
[*]

18.  Copies

 

Holiday [*]:

 

AT&T
agrees to compensate Supplier [*] the applicable hourly rate shown above for
work performed by Order Specialist headcount during the Holidays shown in Section H
Holidays that were previously approved by AT&T in writing.

 

Where the Parties are to mutually agree on the
headcount quantity, [*] or the course of conduct or activity under this Order,
or any other provisions of this Order where the Parties may need to mutually
agree, in the event the Parties cannot mutually agree within ten (10) business
days, Supplier agrees to carry out the expressed requests of AT&T provided
such requests are not unreasonable. 
Concurrently, the Parties agree to also promptly escalate to the next
level of management for resolution.

 

2

 

5.                                       Invoices/Billing Information:

 

If Supplier is enabled to transact business with AT&T using the
internet-based Ariba Supplier Network (“ASN”), Supplier agrees to submit
invoices in electronic form to AT&T’s Accounts Payable organization through
the ASN.  If
Supplier is not so enabled, it agrees to submit invoices to AT&T Accounts
Payable, PO Box 66960, St. Louis, MO 
63166-6960.  Invoices
against this Order shall reflect billing number [TBD] exactly as shown. 
Supplier shall ensure that AT&T’s Program Manager actually receives
such invoices no later than the tenth (10th) of each month for the prior month’s service in the
format requested by AT&T.  Supplier
shall send electronic copies of all invoices including back-up documentation to
AT&T’ Program Manager set forth in Section 7.

 

Invoice charges (including any training expenses) shall be in
accordance with the rates shown in Section 4 Pricing of this Order.

 

[*] - Supplier
shall provide a document with each invoice which details the following:

 

·             Headcount [*] by name, hire
date, and months on Program.

 

Training - Supplier shall provide the following back-up
documentation, as requested by AT&T, supporting all training expenses
previously approved by AT&T in writing and billed to AT&T.  This documentation shall specify the
following information for each training class included in the billed training
expense:

 

·                  Name or other designation of the training
class

·                  Program Request Form (PRF) to which the
training is billed.  If training is
cross-promotional (directed by AT&T in writing, and for the benefit of
multiple AT&T programs), Supplier will provide a copy of the PRF from
AT&T directing the allocation of the resulting expense across the affected
programs, as well as a list of the programs across which the expense is to be
allocated.  The cross-promotional
training expense will be allocated,  as
directed by AT&T, by Supplier across the affected programs (PRF’s)

·                  Name of the contact at AT&T who directed
Supplier to conduct the training

·                  Length, in hours per agent, of the training
material covered in the class

·                  Start-date of the training class

·                  End-date of the training class

·                  Number of agents beginning the class

·                  Number of agents completing the class

·                  Other supporting information as requested by
AT&T

 

The aforementioned information shall be presented in a consistent
format satisfactory to AT&T for each invoice.  Supplier will attach this information, along
with other required back-up data, to the back of a copy of the corresponding
invoice.

 

3

 

6.                                       Maximum Expenditure:

 

The maximum expenditure shall not exceed [*] over the life of this Order.
Subject to this maximum, the total amount payable by AT&T for the Work
shall be determined by applying the stated rate of applicable compensation set
forth in this Order.  AT&T shall not
be required to pay for Work in excess of this maximum unless Supplier has first
secured an amendment to this Order authorizing the increased expenditure.

 

7.                                       Program Manager/Point of Contact:

 

AT&T’s Program Representatives is:

 

[*]

 

8.                                       AT&T Contract Manager:

 

[*]

 

9.                                       Supplier Point of Contact:

 

[*]

 

10.                                 Dispute Resolution — Mediation

 

a.               The Parties will attempt in
good faith to promptly resolve any controversy or claim arising out of or
relating to this Order through negotiations between authorized representatives
of the Parties, before resorting to other remedies available to them.

 

b.              If a controversy or claim
should arise which is not settled as specified in Subsection a.,
representatives of each Party who are authorized to resolve the controversy or
claim will meet at a location designated by AT&T, at least once, and will
attempt to, and are empowered to resolve the matter.  Either representative may request this
meeting within fourteen (14) days of such request (the “first meeting”).

 

c.               Unless the Parties otherwise
agree, if the matter has not been resolved within twenty-one (21) days of the
first meeting, the representatives shall refer the matter to more senior
representatives, who shall have full authority to settle the dispute.  Such senior representatives will meet for
negotiations within fourteen (14) days of the end of the twenty-one (21) day
period referred to above, at a site designated by AT&T.  Three (3) business days prior to this
scheduled meeting, the Parties shall exchange memoranda stating the issue(s) in
dispute and their positions, summarizing the negotiations which have taken
place, and attaching relevant documents.

 

d.              If more than one (1) meeting
is held between the senior representatives, the meeting shall be held in
rotation at the offices of Supplier and AT&T.

 

e.               If the matter has not been
resolved within thirty (30) days of the first meeting of the senior
representatives (which period may be extended by mutual agreement), the 

 

4

 

Parties will attempt in good faith to resolve the
controversy or claim in accordance with the American Arbitration Association’s
then current Commercial Arbitration Rules.

 

11.                                 Name of Affiliate Ordering Services:

 

AT&T
Operations, Inc.

 

Original signatures
transmitted and received via facsimile or other electronic transmission of a
scanned document, (e.g., .pdf or similar format) are true and valid signatures
for all purposes hereunder and shall bind the Parties to the same extent as
that of an original signature. This Order may be executed in multiple
counterparts, each of which shall be deemed to constitute an original but all
of which together shall constitute only one document.

 

IN WITNESS WHEREOF, the Parties have caused
this Order 20070105.006.S.018 to be executed as of the date the last Party
signs.

 

	
  STARTEK, INC.

  	
   

  	
  AT&T Services, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  A. Laurence Jones

  	
   

  	
  By:
  

  	
  /s/
  Kathy Holzer-Muniz

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Printed Name: A. Laurence Jones

  	
   

  	
  Printed
  Name: Kathy
  Holzer-Muniz

  
	
   

  	
   

  	
   

  
	
  Title: President and CEO

  	
   

  	
  Title:
  Sr. Contract Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:
  

  	
  5/26/10

  	
   

  	
  Date:
  

  	
  5/21/10

  
	
   

  	
   

  	
   

  	
  On
  behalf of AT&T Operations, Inc.

  

 

5

 

Order No 20070105.006.S.018

Attachment A

 

AT&T BUSINESS/WORLDWIDE
CUSTOMER SERVICE

TELEPRESENCE ORDER PROCESSING &
SUPPORT

Statement of Work

April 1, 2010

 

A.  Work Description

 

Supplier shall provide services to AT&T for Telepresence Ordering
support. Supplier shall perform the Services to new and existing AT&T
Business customers using AT&T processes and ordering systems as defined by
AT&T.  Supplier shall provide Agents
to perform the following functions, (hereinafter “Program” or “Programs” or “Work”)
as described below.

 

ATS — AT&T Telepresence Services / AT&T
Call Center, Tier 1 and Tier 1 Equipment Configuration Support, (Domestic)
Equipment and Services Procurement Services

 

Supplier
shall perform procurement services associated with AT&T’s Telepresence
Equipment for new and existing AT&T Business customers using AT&T
processes and ordering systems as defined by AT&T.  Supplier shall provide dedicated Agents to
perform the following process.  For the
customer accounts assigned to the Supplier by AT&T, the Supplier will carry
out the production functions listed below, managing to Completion the greatest
number of Purchase orders possible. “Completion” is defined as completing the
purchase order process and ensuring the equipment is staged and shipped to the
client.

 

AT&T Telepresence Center Support

 

The Supplier will provide necessary support for
communication with vendors & internal support for equipment orders and
equipment information

·                  Configuring purchase orders for the hardware
requirements listed on submitted customer Equipment Order Lists.

·                  Verifying accuracy of information submitted
on Equipment Order lists required for procurement form outside vendors such as
part number, description, model number, etc.

·                  Know and understand different sourcing
alternatives (i.e. distributors) and their required ordering methodologies.

·                  Manage special requests/exceptions involving
order expeditions, equipment returns, alternate sourcing, etc.

·                  Communicating purchase order status to the
Program Managers via database updates, phone call or email.

·                  Establishing and maintaining excellent client
and vendor relationships.

·                  Single point of contact for the Telepresence
WPM (Worldwide Project Manager) Center in responding to client inquiries about
their orders.  In most cases it will
require direct, professional communication via phone calls or emails with the
AT&T sales teams, internal staff, and vendors.

·                  Maintain internal summary reports of order
activity.

·                  Provide support to the AT&T Sales and
Fulfillment Center teams.

 

Proprietary
Information

The
information contained in this Agreement is not for use or disclosure outside
AT&T, Supplier, their Affiliates and their third party representatives,
except under written agreement by the contracting Parties.

 

1

 

Customer Premise Equipment (CPE) — AT&T
Telepresence Ordering

 

·                  Accepting AT&T customer and Internal
organization PO requests for customer owned/leased equipment and services.

·                  Accepting customer / sales
requests for Telepresence equipment and services via inbound customer call or
via electronic list, e.g. via email, of order management work tasks (i.e.,
electronic to-do list of work items associated with order processing)

·                  Logging order for tracking
and timing purposes.

·                  Verifying completeness of
received customer information, including verifying accuracy to effect accurate
billing.

·                  Data gathering of customer
information, internal parties, or AT&T inventory systems to obtain complete
data set to place order.

·                  Processing purchase
requisitions for equipment and/or services through the appropriate AT&T
systems.

·                  Track the processing of the
purchase requisition ensuring the required SOA approval is completed for the
purchase. If SOA is not obtained within [*] hours or purchase requisitions
creation, call approver, if no answer escalate to get required approvals.

·                  Verifying product
availability with vendor.

·                  Confirming availability of
product.

·                  Identifying second source
supplier, if necessary.

·                  Determining if expedite, is
necessary.

·                  Order tracking and order
reject management.

·                  Providing regular status to
related AT&T internal parties (including expected and firm due dates).

·                  Resolving any jeopardies.

·                  Confirm shipping status of
ATS equipment

·                  Resolving PO / Invoice
Issue(s).

 

Subsequent to order submission, Supplier’s Telepresence Order
Processing responsibilities shall include, but will not be limited to the
following:

 

·                  Completing Sarbanes Oxley spreadsheets where
appropriate;

·                  Auditing of orders for accurate coding in all
associated and impacting AT&T databases;

·                  Retrieving reports from AT&T’s systems to
verify all orders placed are correct;

·                  Completing an internal status calls and spreadsheets
where appropriate;

·                  Participating via phone in requested
conference calls and meetings when appropriate;

·                  Ensuring that the order Completes by due
date;

·                  Monitoring and resolving orders for jeopardy
and reject status;

·                  Communicating with internal AT&T
representatives (PIMs, Engineers)  either
via phone, system or email specific intervals within the ATS cycle including,
but not limited to:

·                  Confirmation of receipt,

·                  Estimated due date,

·                  Firm due date,

 

2

 

·                  Identifying all issuance errors and following
up on subsequent correcting orders to assure accurate billing,

·                  Issuing orders to correct inaccurate billing
and confirming completion,

 

Supplier will comply the process and schedules set forth herein.  In the event jeopardy occurs, the ordering
Agent will troubleshoot and resolve the issue within [*] of the jeopardy
occurring.  Supplier’s Agent is defined
as the Supplier’s dedicated full-time equivalent employee(s) performing
services that support the AT&T’s Program.

 

Jeopardies include:

·                  Equipment not available from
vendor within client deliverable date

·                  Damaged equipment not
returned to the vendor

·                  Trade In Agreement not met.

 

AT&T, customer or the provisioning vendor wishing to add to or
change the PO request may contact Supplier’s Agent and communicate their
request via electronic mail or AT&T’s electronic ordering system following
standardized order issuance procedures.

 

Additional
Responsibilities:

 

Supplier
shall be responsible for all activities supporting the Ordering process such as
training, including initial new-hire and supplemental training, vendor
certifications, metric support and management, communication and compliance of
process issues / changes, and escalation/exception management.

 

·                  Supplier will work with AT&T’s Program
Manager, Process and Metrics personnel to evaluate day-to-day operations and
monthly metrics to identify and implement process improvements that decrease
intervals and improve accuracy;

·                  Document process
requirements and logs in appropriate data bases and systems;

·                  Review all methods and procedures etc.,
provided by AT&T, on a daily basis for updates;

 

ATS Telepresence Customer Care Services

 

Supplier shall provide services to AT&T for Telepresence Customer
Care.

 

Supplier shall perform Customer Care services associated with
Telepresence services for new and existing AT&T business customers, using
AT&T processes and systems as defined by AT&T.  Supplier shall perform the Customer Care
process, which is defined as Supplier accepting and resolving customer
inquiries regarding as outlined and defined below:

 

Supplier shall perform the following customer care functions:

·                  Provide high-quality service;

·                  Document process
requirements and logs in appropriate data bases and systems;

·                  Review all methods and procedures etc. provided by AT&T, for
updates;

·                  Handle each vendor and internal user inquiry by greeting contacts
properly, establishing rapport, conducting appropriate fact finding, providing
accurate and complete information, displaying professionalism, resolving
inquiries and meeting all commitments;

 

3

 

·                  Tracking and reporting activities, errors and progress on a regular
basis;

·                  Supplier’s Agents are expected to possess the following competencies:

·                  Professionalism

·                  Courteousness
Excellent customer service skills

·                  Accuracy and
completeness

·                  Administrative
Functions

·                  Internet/browser/email
knowledge

·                  PC/application
experience

·                  Customer facing
skills

·                  Help desk

·                  Intermediate
database use

·                  Technical
skills for data connectivity.

·                  Provide
outbound correspondence, if necessary, to properly fulfill certain customer
requests.

·                  Complete all
callbacks in accordance with the following:

·                  Any customer
request or inquiry must be completed expeditiously as defined by AT&T

·                  Outbound
calling may result as part of resolving ordering status or internal meetings
and collaboration.

 

Supplier Roles and Responsibilities

 

Supplier’s
Agents shall provide satisfaction for their handling of vendors from start to
resolution, which includes the following:

 

·                  Supplier shall
perform all necessary ordering system support, which shall include performing
all follow-up work, needed to update accounts.

·                  Adhere to AT&T’s documented order quality
guidelines provided by AT&T.

·                  Review, implement and comply with AT&T
advisories and process changes as provided by AT&T.

·                  Adhere to documented processes provided by
AT&T to track and report work activities and progress.

 

Suppliers
shall provide Supervisors who shall be responsible for Agent performance, which
includes the following:

 

·                  Provide leadership and supervision to Agents.

·                  Conduct monthly development sessions with
each Agent to discuss performance.

·                  Manage adherence to AT&T’s documented
call quality guidelines.

·                  Review, implement and comply with AT&T’s
documented processes to track and report work activities and progress as described
in Section O Reports / Status Requirements.

·                  Provide on-going quality
improvement, which includes, but is not limited to, Agent performance,
reporting, Supplier’s work processes, customer care functions, and escalation
management.  Supplier shall communicate
to AT&T on a quarterly basis, all quality initiatives that Supplier
implemented.

 

Supplier
shall provide a Program Manager position, which is responsible for, but not
limited to, the following:

 

4

 

·                  Act as primary interface between AT&T and
Supplier’s personnel assigned to the Program.

·                  Oversee personnel assigned to the Program,
including performance, process adherence, communication, and reporting
functions.

·                  Review, implement and/or comply with AT&T’s
documented processes.

·                  Adhere to AT&T’s call quality guidelines
and provide team coaching as appropriate

·                  Provide on-going quality improvement, and
communicate all quality initiatives implemented on a quarterly basis to
AT&T.

·                  Ensure each employee receives training as
defined in Section D Training.

 

B.  Hours/Days of Operation

 

Supplier
shall provide services during the following days/times.

 

Monday
through Friday, from 8:00 AM until 8:00 PM Eastern time (referred to herein as “business
hours”). If necessary additional hours or weekend support may be required.

 

Supplier
shall manage the Agents to cover the time periods set forth above.  Agents shall not exceed [*] in any given week
with prior written approval by AT&T.

 

The
above hours and/or days of operation are subject to change as agreed upon or
designated in writing by AT&T.

 

In
addition, services authorized by AT&T in writing shall be provided, as
determined by AT&T, outside normal business hours to complete special
projects where appropriate.  Supplier
shall provide [*] pagers to all Suppliers supervisory positions for after-hours
contact.

 

C.  Volume and Forecasting Process

 

AT&T’s
initial requested volume authorized under this Order is [*] fully trained FTE’s
for this Program, however, such volume may reach up to [*] FTEs, subject to
AT&T’s written approval.  AT&T
reserves the right at any time to increase/decrease the number by FTEs by
providing written notice to Supplier.  In
addition, Supplier shall provide [*] Dedicated Area Manager until such time as
the Parties agree that a dedicated Area Manager is not required. Such manager
shall be compensated pursuant to the rate shown in Section 4 Pricing.

 

AT&T
cannot currently estimate the first year Volume Forecast.  AT&T will continue to develop forecasting
processes for the line of business covered by this Statement of Work.

 

AT&T shall compensate
Supplier for the number of approved FTEs, pursuant to the Agent rate shown in Section 4
Pricing.

 

5

 

D.  Training

 

Supplier
shall provide, at Supplier’s facilities, a training and education staff for all
new hire and supplemental training for all Agents (“Agents”), as part of the
Program requirements.  Supplier warrants
that this training and education staff will have extensive knowledge of
procurement and skill requirements mentioned herein. Supplier shall provide a
quality-training program that ensures proficiency in both basic order entry and
customer care soft skills.  Supplier
agrees that Agents shall receive, at a minimum, the following training:

 

The
Telepresence Operations training package may include, but not be limited to:

·                  Telepresence Overview

·                  System and Tools training

·                  SmartNet Renewal Training

·                  Equipment and Services Procurement Training

·                  Minimum curriculum requirements necessary to
provide new associates with a basic knowledge of call center/customer service,
network equipment procurement, Accounts receivable/billing preparation

·                  Computer Literacy (including email, Excel,
Word, PowerPoint Visio, Online Web forms)

·                  Customer care skills (e.g., handling
difficult customers, customer dissatisfactions, objections, etc.)

·                  Ordering functions (data gathering, order
management, order validation, escalation / expedite activity, etc.)

·                  AT&T Systems (functionality and
compliance) - AT&T shall provide a list of AT&T systems necessary to
use to support the Work.

 

Duration
of Training is [*] ([*]) and the training class size shall be no greater than
fifteen (15) Agents without AT&T’s written approval.  Training to begin on April 21, 2010 for
initial FTEs.

 

Training
costs for new Agents authorized by AT&T in writing shall be compensated in
accordance with the rates shown in Section 4 Pricing of this Order.

 

As
new AT&T processes are developed, the Agents will continue to participate
in training at no additional charge to AT&T.

 

Supplier
agrees to create and maintain a Tier I Agent Support Process to manage all
Supplier process and ongoing training issues. 
Agent Support Process is defined as follows:  Such Tier I Agent Support Process shall be
staffed with Supplier personnel trained and qualified as the Supplier’s Subject
Matter Expert (“SME”) and manage all Supplier process and training
matters.  AT&T and Supplier shall
mutually agree to Supplier SME’s training and qualification.  Such Tier I Agent Support process developed
by Supplier shall be the first choice of information and escalations.  As a last resort, AT&T may provide, if
deemed necessary by AT&T, advice and guidance to Supplier SME for knowledge
of products and services, processes, and general information.  AT&T personnel
should be enlisted for assistance only after Supplier has exhausted all
internal resources.

 

6

 

E.  Systems and Telephony

 

Supplier
shall provide, at its sole cost and expense, all systems and telephony
equipment necessary to support the work performed. This should include, but is
not limited to:

 

·                  PBX equipment

·                  Work stations for remote
access to AT&T systems. Must be (minimum) Pentium processor with 128MEG of
RAM.

·                  Sufficient equipment to
handle the volumes of calls as anticipated in this Order.

·                  Sufficient support and
management administration to assure the continued operation of, and maintenance
of all equipment and telecommunications facilities.

·                  Monitored group email boxes,
as defined mutually by the Parties.

 

Supplier
shall provide all facilities necessary to access AT&T’s systems and manage
the volume of calls as AT&T deems appropriate. AT&T may provide to Supplier secure access procedures
for accessing the appropriate ordering and tracking systems along with the
required operating system requirements, which Supplier agrees to follow.  Additionally, AT&T will at its sole
discretion attempt to provide sufficient access (modem pools, etc.) to
support remote access to systems via Supplier provided workstations. AT&T’s
failure to provide system access will not constitute a breach of contract by
AT&T nor shall such failure relieve Supplier of its obligations to timely
perform Work, unless performance is rendered impossible because of such
failure.

 

Unless
otherwise required by law, Supplier Agents, when interfacing electronically
with AT&T customers, shall use an AT&T email address provided by
AT&T for the purpose of identifying that the Agent is providing services on
behalf of AT&T.

 

F.  Change Management

 

·                  Supplier will not make any changes to
AT&T policies and procedures without prior written approval of AT&T’s
Program Manager.

·                  An AT&T Program Manager will be assigned
and will act as liaison between Supplier and AT&T.

·                  Supplier shall work with AT&T’s designated
Program Manager.

·                  Change requests for systems, processes and
other program requirements will be submitted in writing by the Party requesting
such change to the other Party.

·                  Supplier will provide dedicated contract
management and project interface at no additional cost to AT&T.

 

G.  Direct Measures of Quality
(DMOQ)

 

The
Direct Measures of Quality (DMOQs) applicable to this program are shown
below.  AT&T and Supplier shall
review these DMOQs after the first [*] and [*] after production and to determine
if any changes are required.  At such
time, the Parties shall mutually agree on any changes to the DMOQs and shall
amend this Order to reflect such DMOQs.

 

Supplier
shall comply with the DMOQs set forth below which shall be measured monthly,
based on current month’s performance. 
Performance categories are as follows:

 

·                  High-level
end-to-end ordering and customer care process

 

7

 

·                  Task
specific ordering work required — system order tracking

·                  Basic
jeopardy troubleshooting/resolution and escalation procedures

·                  System
access and navigation procedures

·                  Additional
measurements as agreed upon by both Parties

 

Supplier shall comply with the established DMOQs, unless
otherwise approved in writing by AT&T. 
AT&T reserves the right to change the targets
at any time by providing advance written notice to Supplier.  Supplier
shall make all reasonable efforts to meet/exceed such revised DMOQs upon
receipt, but no later than [*] after notification by AT&T.

 

Telepresence Procurement

 

	
  DMOQ

  	
   

  	
  Definition

  	
   

  	
  Objective

  
	
  1. Productivity

  	
   

  	
  Total number of orders completed by the team per month
  or average orders per week

  	
   

  	
  > [*]-[*] orders per agent per week

  
	
  2. Cycle Time

  	
   

  	
  Average number of days from Agent order receipt to order
  completion; cycle time is defined as: from receipt of Equipment Order List to
  PO Creation

  	
   

  	
  [*] from time request has been received until
  it is processed.

  [*] from time orders have been received,
  processed, equipment delivered and bill prepared.

  
	
  3. Order Quality

  	
   

  	
  Number of orders that do not successfully complete the
  ordering process due to Agent error is measured annually

  	
   

  	
  Unsatisfactory if more than [*] orders require
  adjustments, Poor if more than [*] orders require adjustments, Good if
  [*]-[*] orders require adjustments, Excellent is less than [*] orders require
  adjustments

  
	
  4. Orders Completed

  	
   

  	
  Close
  orders within [*] days includes: resolve any post RMA, trade in and other
  credit and adjustment issues in a timely manner

  	
   

  	
  Unsatisfactory [*] % in <[*] days

  Poor [*]-[*] % in <[*] days

  Good [*]% in <[*] days

  Excellent [*] % in <[*] days

  

 

8

 

	
  DMOQ

  	
   

  	
  Definition

  	
   

  	
  Objective

  
	
  5. Customer Service client response time

  	
   

  	
  Answer
  800 number and respond to client queries without passing to another agent or
  supervision within AT&T

  	
   

  	
  Unsatisfactory <[*]% queries handled within [*]

  Poor [*]% - [*]% queries handled within
  [*]

  Good [*] — [*]% handled within [*]

  Excellent >[*]% queries handled within
  [*]

  
	
  6. Customer Satisfaction

  	
   

  	
  % of highly satisfied customer experiences as measured
  by annual customer surveys, client feedback or testimonials

  	
   

  	
  Unsatisfactory< [*] positive or > [*]
  negative responses

  Poor [*] — [*] positive or > [*]
  negative responses

  Good [*] — [*] positive or <[*]
  negative responses

  Excellent >[*] positive or [*]
  negative responses

  

 

Call
handling guidelines will be provided and covered in initial training.

 

Based on reports provided by
AT&T at its sole discretion, which may include available raw data, Supplier
shall use such reports and/or data in combination with its own tracking
resources to compute the calculations of AT&T designated metrics.

 

Supplier
shall actively participate, at no cost to AT&T, in any DMOQ improvement
initiatives as set forth by AT&T and agrees to furnish supplemental
documentation upon request.

 

Supplier
shall maintain Individual Performance records for each Agent, based on the
measured DMOQs.  These records shall be
compiled on a monthly basis and maintained for the life of the Agreement.  Supplier shall promptly provide this detail
to AT&T upon request.

 

In
the event that one or more DMOQs listed herein are not met for the calendar
month, Supplier shall develop an action plan to correct the deficient area(s),
and shall submit in writing for AT&T’s approval, such action plan within
[*] after the deficiency is identified. If such action plan is approved in by
AT&T in writing, Supplier shall implement such action plan within [*] after
approval.

 

In
the event that the first action plan is not approved by AT&T, AT&T may
request Supplier to revise such action plan and submit to AT&T, in writing
that action plan within [*] after the deficiency is identified. If such action
plan is approved by AT&T in writing, Supplier shall implement the revised
action plan within [*] after approval.

 

In
the event that the revised action plan is not approved by AT&T, AT&T
may request Supplier again to revise such action plan and submit to AT&T in
writing that action plan within [*] after the deficiency is identified.  If such revised action plan is approved by
AT&T in writing, Supplier shall implement such revised action plan within
[*] after approval. If the revised action plan still does not meet AT&T’s
satisfaction, this failure by Supplier shall be considered a material
breach.  In 

 

9

 

addition,
if Supplier fails to correct the deficiencies in any approved action plan it
shall be deemed a material breach of this Order.

 

Nothing
herein shall limit AT&T’s right to terminate this agreement pursuant to the
Section 3.4 of the Agreement.

 

H.  Holidays

 

Supplier
shall not perform nor invoice for work on the following US holidays unless
requested by AT&T in advance, in writing:

 

New Year’s Day

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

Christmas Day

 

I. 
Staffing

 

Supplier shall provide sufficient resources
equivalent in knowledge and skill sets as they pertain to Agent positions based
on the forecasting requirements shown in Section C “Volume and Forecasting”.

 

In addition, Supplier shall provide supervisory
support and project management expertise, which shall be at Supplier’s sole
cost and expense.  Supplier’s personnel
shall not work on any other AT&T programs without prior notification and
AT&T’s consent. In no event, shall such personnel work on any non-AT&T
program.

 

If
for any reason whatsoever Supplier’s staffing falls below the resources
required to support the forecasted volumes provided by AT&T, Supplier shall
not be excused from meeting or exceeding the DMOQs in this Order.  In the event of such staffing failure,
Supplier shall immediately take all steps to mitigate its failure, and shall,
at its sole cost and expense: hire and train additional staff and/or authorize
overtime to meet or exceed the DMOQs until the required resource levels are
met.   The provisions of this paragraph
are in addition to and not in limitation of all other rights and remedies
AT&T may have as a result of Supplier’s failure to provide such resources.

 

Staffing Control

 

AT&T may request immediate removal and replacement
of any Agents(s) or other employee(s) of Supplier (e.g., trainers,
supervisors, managers, etc.) for performance reasons at any time.  Supplier shall, at Supplier’s sole expense,
remove and replace such Agent(s) or employee(s).  Supplier shall not reassign such Agent(s) or
employee(s) to any other AT&T Program(s).  Likewise, an employee who was removed from
another AT&T Program for performance reasons may not be reassigned to this
Order.

 

10

 

AT&T may request removal of employees working under
this Order based on performance issues which may include, but are not limited
to:

 

·                  Not meeting AT&T processes and/or DMOQs.

·                  Providing the customer with information that misrepresents or misleads
the customer about features and/or benefits of the program.  This may include, but is not limited to
information about rates, reoccurring charges, etc.

·                  Providing other AT&T employees with information that misrepresents or
misleads them about the status of an order.

·                  Failure to provide timely and/or accurate status of an order to a
customer or other AT&T employee.

·                  Use of inappropriate language or acting in a discourteous manner
(including racial slurs, sexual comments, profanity, etc.)

·                  Acting in a rude manner or using an inappropriate tone (e.g., yelling or
repeatedly interrupting a customer or AT&T employee)

 

Supplier
shall comply with such request and ensure timely transition of all pending work
to another representative.

 

J.  Security

 

Supplier
shall abide by and assure full compliance with the contractual requirements
concerning AT&T’s proprietary information (including but not limited to
CPNI (“Customer Proprietary Network Information”) and ensure that their
employees operate with the highest standard of business ethics.  Additionally, Supplier will manage an
inventory of all System IDs issued to Supplier employees, assuring the deletion
of said System IDs when Supplier employee resigns, transfers to a non-AT&T
program, or transfers to other AT&T business units other than Service
Provider.

 

K. Workforce Management Plan

 

Supplier shall provide AT&T with a minimum
thirty-day (30) notice of any planned changes (not including resignations) to
Area, Program, District and Division Manager position staffing.   Whenever an individual in one of these
positions is replaced, Supplier shall provide AT&T with a documented
candidate selection and transition process, along with a description of the
proposed candidate’s skills and experience.

 

L.  Post Outage Review and Root Cause Analysis

 

In the event any telecommunications services or
processes are not operating properly, Supplier shall take immediate and
appropriate action in accordance with Supplier’s business continuity plan to
rectify the malfunction and shall immediately notify AT&T Representative
within [*] of the service-affecting situation and of remedial action taken.

 

Supplier
shall provide root cause analysis and/or post outage review to AT&T within
[*] after an outage or by close of business Monday if the trouble occurs on
Friday after an outage, including the testing of all failed components,
analysis of failures, identification of chronic and systemic problems,
implementation of fixes and monthly reporting on component failures and actions
taken.  Results of the root cause
analysis shall be provided to AT&T in writing in a format 

 

11

 

mutually
agreed to by the Parties. The post outage review shall cover the details of the
incident and the actions taken for resolution and prevention.

 

M.  Productivity Improvement / Cost Reduction

 

During the term of this
Order, AT&T and Supplier shall work together to reduce total time and work
time per customer order and improve all tasks associated with this Program
recognizing that quality must not be impaired.

 

Supplier agrees to identify
productivity improvements to drive cost reductions and headcount reductions
associated with Supplier’s billable rates. AT&T’s Program Representative
has sole discretion to review and approve any headcount reduction, productivity
improvement and/or cost reduction initiative identified by Supplier.  If such headcount reduction, productivity
improvement and/or cost reduction initiative is approved by AT&T, Supplier
shall implement such initiative and once the cost savings have begun to be
realized, all applicable cost reductions shall immediately be applied to all
charges by Supplier invoiced to AT&T, per the applicable rates listed in Section 4
Pricing and any gain sharing initiatives that have been mutually agreed
upon.  If any substantial expense or
capital investment is required by Supplier to implement an approved productivity
improvement or cost reduction initiative, AT&T and Supplier will mutually
agree to any such investment arrangement.

 

N.  General Items

 

Unless otherwise required
by law, Supplier Agents, when interfacing with AT&T customers and
specifically questioned regarding their employment, Agent shall for the answer
that the Agent is providing services on behalf of AT&T.

 

Any Supplier Employee related to this Program, either by
function or by title, shall not enter into business agreements, nor act as
agent for, any AT&T competitor in a facility dedicated to this Program.

 

O.  Reports/Status Requirements

 

AT&T will provide Supplier, at AT&T’s sole
discretion, timely access to the data necessary to generate the required daily,
weekly, and monthly reports set forth below which shall be provided by
Supplier.

 

1.                                       Provide
required periodic reporting to AT&T:

a)              Daily incoming ordering log
including, but not limited to, the following information on an order by order
basis:  date and time order received,
customer name, customer PO number, date and time assigned and assigned to, date
and time order is validated clean and ready to process, total amount (dollars
of the order) order type (turnkey, ready or standard) AT&T email contact,
date entered into ordering system (s), purchase requisition  number, expected completion date, actual
completion date, orders held, orders rejected back to AT&T’s originator, ,

b)             Headcount listing,
organizational charts and escalation contact lists.

c)              Others as deemed necessary
by AT&T.

 

12

 

2.                                       Supplier shall
pro-actively manage its resources down to the individual level in a format
satisfactory to AT&T.

 

3.                                       Supplier’s
Program Manager shall attend daily, weekly and monthly status meetings as
established by the AT&T. Such meetings shall be at Supplier’s sole cost and
expense.

 

4.                                       A quarterly
review of Program content and implementation will be performed between AT&T’s
Program Manager and Supplier’s Program Manager. 
Weekly operational calls may also be held between AT&T and Supplier’s
Program Managers.  AT&T may request
daily reviews when business results and metrics warrant.  These reviews will be conducted at the
convenience of both Parties.

 

Supplier,
at its’ sole expense, shall implement and use the appropriate project
management tools and reporting systems in order to effectively and efficiently
manage AT&T provided order volumes and provide timely and accurate status
to AT&T and its’ customers.

 

13EXHIBIT 10.3

 

[*] = Certain confidential
information contained in this document, marked with brackets, has been omitted
and filed separately with the Securities and Exchange Commission pursuant to a
request for confidential treatment made pursuant to Rule 24b-2 under the
Securities Exchange Act of 1934, as amended.

 

Amendment

 

20070105.006.S.016.A.001

 

Between

 

StarTek, Inc.

 

And

 

AT&T Services, Inc.

 

 

AMENDMENT NO. 1

 

ORDER NO. 20070105.006.S.016

 

 

This
Amendment, effective on the date when signed by the last Party (“Effective Date”),
and amending Order No. 20070105.006.S.016, is by and between StarTek, Inc.,
a Delaware corporation (“Supplier”), and AT&T Services, Inc., a
Delaware corporation (“AT&T”), each of which may be referred to in the
singular as a “Party” or in the plural as the “Parties.”

 

WITNESSETH

 

WHEREAS, Supplier and AT&T entered into Order No. 20070105.006.S.016
on December 9, 2009 (the “Order”); and

 

WHEREAS, Supplier and AT&T desire to amend the
Order as hereinafter set forth.

 

NOW, THEREFORE, in consideration of the
premises and the covenants hereinafter contained, the Parties hereto agree as
follows:

 

1.)           Section 5 Invoices/Billing
Information is hereby amended to replace the third sentence of
the first paragraph with the following:

 

“Invoices against this Order shall reflect billing
number [*] exactly as shown.”

 

2.)           Section 6 Maximum
Expenditure is hereby amended to replace the first sentence
with the following:

 

“The
maximum expenditure under this Order shall not exceed [*] over the life of this
Order.”

 

3.)           Section A. Program
Description is hereby amended to replace the second paragraph
in its entirety with the following:

 

“Effective,
March 8, 2010, Supplier shall provide [*] resources (“Initial FTEs”).  Training for such [*] FTE’s shall be
[*].  Each FTE is expected to support [*]
per calendar month.  A “Request” is defined as PAM activities (“AT&T’s
Personal Activities Manager system”), which could result in numerous orders.”

 

The
terms and conditions of Order No. 20070105.006.S.016 in all other respects
remain unmodified and in full force and effect.

 

Proprietary
and Confidential

This Agreement and
information contained therein is not for use or disclosure outside of AT&T,
its Affiliates, and third party representatives, and Supplier except under
written agreement by the contracting parties.

 

2

 

Original signature
transmitted and received via facsimile or other electronic transmission of a
scanned document, (e.g., .pdf or similar format) are true and valid signatures
for all purposes hereunder and shall bind the Parties to the same extent as
that of an original signature.  This
Amendment may be executed in multiple counterparts, each of which shall be
deemed to constitute an original but all of which together shall constitute
only one document.

 

IN WITNESS WHEREOF, the Parties have caused
this Amendment to Order No. 20070105.006.S.016 to be executed, as of the
date the last Party signs.

 

	
  StarTek, Inc.

  	
   

  	
  AT&T
  Services, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  A. Laurence Jones

  	
   

  	
  By:
  

  	
  /s/
  Kathy Holzer-Muniz

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Printed Name: A. Laurence Jones

  	
   

  	
  Printed
  Name: Kathy Holzer-Muniz

  
	
   

  	
   

  	
   

  
	
  Title: President and CEO

  	
   

  	
  Title:
  Sr. Contract Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:
  

  	
  3/31/2010

  	
   

  	
  Date:

  	
  3/31/2010

  

 

3

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