Document:

EX-10.1

 

PERSONAL AND CONFIDENTIAL 

Date: May 31, 2011

Mr. Greg Carr

XXXXXXXXXX

XXXXXXXXXX

Dear Greg:

I am pleased to present this offer of employment to join APAC Customer Services, Inc.
(“APAC”, or “the Company”) as Senior Vice President, Chief Marketing and Sales Officer,
reporting to me. The following terms will apply:

	 	1.	 	Your start date will be May 31, 2011.

	 	2.	 	Your starting base salary will be Two Hundred Seventy-Five Thousand Dollars ($275,000)
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 eligible to participate in and earn bonus compensation under the Company’s
Management Incentive Plan (the “MIP”), as may be in effect from time to time, in accordance
with the Company’s compensation practices. You will have a target payout bonus opportunity
equal to 50% of your base salary with a maximum bonus opportunity equal to 100% of your
base salary. The payout of the MIP will depend on APAC meeting its budgeted financial
performance and you meeting individual and team performance goals that will be established
each year between you and your manager. Your 2011 incentive opportunity will be prorated.
For your 2011 MIP bonus payment (fiscal year ending January 1, 2012), you shall receive a
guaranteed prorated bonus payment based on your minimum MIP incentive opportunity -
calculated from your first date of employment. (By way of illustration only, if you
begin your employment with APAC on July 1, 2011 and are employed for the remainder of
fiscal 2011, your 2011 MIP payment would be approximately one-half of your 50% target bonus
opportunity which would be equal to approximately $68,750).

	 	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.

	 	5.	 	You will be granted options to purchase 106,000 shares of APAC common stock at an
exercise price equal to the official closing price of APAC’s common stock on that date. The
option grant date will be the latter of (a) your first day of employment or (b) the date on
which the Compensation Committee approves the grant. These options will vest at the rate
of 20% per year during the first five years of your employment, provided that, you are
employed by the Company on the date such installment is scheduled to so vest.

You will awarded a grant of 36,000 shares of restricted APAC common stock, the effective
grant date for the restricted shares will be the later of (a) your first day of
employment or (b) the date on which the Compensation Committee approves the grant.
These restricted shares will vest at the rate of 20% per year during the first five
years of your employment, provided that, you are employed by the Company on the date
such installment is scheduled to so vest.

It is intended that the grant of options and restricted shares referenced above will
cover at least your first two years of employment and you should not expect to receive
any additional grants of equity until after your second anniversary of employment with
the Company.

	 	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.

	 	7.	 	As a condition of employment, you will sign an “Agreement Protecting Company
Interests”.

	 	8.	 	Except for (1.) termination of employment in connection with a “change in control” as
defined in the Employment Security Agreement referenced above, (2) resignation by the
executive; or (3.) 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 you will receive the
following:

(a) severance equal to the monthly amount of your then-current base salary for
the twelve (12) month period following termination by the Company;

(b) assuming APAC meets its budgeted financial performance, a pro-rated MIP
bonus payment (pro-rated from the effective date of your termination) or a full
MIP bonus payment for the prior fiscal year if termination takes place after the
end of the fiscal year, but before the MIP bonus payment for the prior fiscal
year has been made; and

(c) provided that, you (and if applicable your dependents) elect healthcare
continuation coverage under COBRA, for a period of twelve (12) months you will
be required to pay only the premium amount charged to active employees for such
healthcare coverage and the Company will pay the balance of your COBRA premiums,
subject to immediate cessation of the Company payment at any such time during
this period that you become eligible for health benefits in connection with
subsequent employment;

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. Any MIP incentive payment under this offer
letter will be made at the same time MIP incentive payments are made to all other
current employees at the executive level.

Notwithstanding the foregoing, if you are deemed at the time of your separation from
service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the
Internal Revenue Code (the “Code”), to the extent delayed commencement of any portion of
the severance payments to which you are entitled under this agreement is required in
order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code,
such portion of your severance payments will not be provided to you prior to the earlier
of (1) expiration of the six-month period measured from the date of your “separation
from service” with the Company (as such term is defined in Treasury Regulations issued
under Section 409A of the Code) or (2) your death.  Upon expiration of the applicable
Code Section 409A(a)(2)(B)(i) deferral period, all payments deferred pursuant to this
paragraph shall be paid in a lump sum to you, and any remaining payments due shall be
paid as otherwise provided herein.

	 	9.	 	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.

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

Sincerely,

APAC CUSTOMER SERVICES, INC.

/s/Kevin T. Keleghan

Kevin T, Keleghan

President and Chief Executive Officer

ACCEPTED BY:

/s/Greg M. Carr

	 	 	Greg Carr

05/31/2011

DateEX-10.2

AGREEMENT PROTECTING

COMPANY INTERESTS

	 	 	 	 	 
	Employee’s Last Name:

	 	First Name:
	 	Middle Initial:
	Carr

	 	Greg
	 	M.

In order for APAC Customer Services, Inc. (hereinafter referred to as the “Company”)
to maintain a competitive edge, the Company must protect its confidential information and customer
relationships.

Therefore, as a condition of employment with the Company and in exchange for the Company’s
provision to me of Confidential Information (as defined below), I agree as follows:

1. DEFINITIONS

“Confidential Information” means information (i) disclosed to or known by me as a
consequence of my employment with the Company, (ii) not generally known to others outside
the Company, and (iii) which relates to the Company’s marketing, sales, finances,
operations, business processes and methodologies, techniques, devices, software programs,
projections, strategies and plans, personnel information, and client information, including
client needs, contacts, particular projects, particularized needs and preferences and
contract cycles.

2. NONDISCLOSURE OF CONFIDENTIAL INFORMATION

I will not disclose or use any Confidential Information for the benefit of myself or
another, unless directed or authorized in writing by the Company to do so, until such time
as the information becomes known to the public through no fault of mine.

3. COMPANY PROPERTY

All documents and other tangible property in whatever form relating in any way to the
business of the Company are the exclusive property of the Company (even if I authored or
created them). All business processes, methodologies and techniques created during my
employment (even if I authored or created them) are similarly the property of the Company.
I agree to return all such documents and tangible property in whatever form to the Company
upon termination of employment or at such earlier time as the Company may request.

4. NON-SOLICITATION OF CLIENTS

During my employment with the Company and for one year after termination of employment with
the Company for any reason, I shall not provide outsourced business services, including
inbound, outbound and interactive telephone and web based services, business process
outsourcing services, or any other services that the Company provided to clients, to any
client of the Company which I had direct contact, direct supervisory responsibility or
access to confidential information, nor will I solicit, induce, or attempt to induce any
such client to: (a) stop doing business with or through the Company, or (b) do business
with any other person, firm, partnership, corporation or other entity that provides products
or services materially similar to those provided by the Company.

	5.	 	NON-SOLICITATION OF SALES PROPOSAL RECIPIENTS

I agree that the preparation of every sales proposal (i.e., a proposal under which the
Company proposes to perform specified services in exchange for compensation) (hereafter, a
“Sales Proposal”) involves the inevitable usage and application of the Company’s
Confidential Information. I further agree that if, following my termination of employment
with the Company, I was to solicit the purchase of, or perform, services which fall within
the scope of any Sales Proposal that I helped to prepare or present on behalf of the
Company, I would inevitably disclose the Company’s Confidential Information. Accordingly,
in order to prevent such disclosure of the Company’s Confidential Information, for a period
of twelve months after the conclusion of my employment for any reason, I agree that I will
neither solicit the purchase of, nor perform, services which fall within the scope of any
Sales Proposal that I helped to prepare or present on behalf of the Company.

6. NON-SOLICITATION OF EMPLOYEES

For one year following termination of my employment with the Company for any reason, I shall
not, directly or indirectly, induce or attempt to induce any employee of the Company to
terminate his/her employment with the Company, nor will I hire or assist in the hiring of
any such employee by any firm or entity of which I am an employee, owner, partner or
consultant.

7. NON-COMPETITION COVENANT

During my employment with the Company and for the greater of one year after termination of
my employment with the Company for any reason or any period over which the Company pays me,
I shall not consult with or be employed by any business offering outsourced business
services, including, without limitation, inbound, outbound and interactive telephone and web
based services, business process outsourcing services, customer relationship management
services, business processing services, or any other services offered by the Company, in any
geographic area or market in which the Company does business, because to do so would
inevitably involve the use or disclosure by me of Company trade secrets and other
Confidential Information.

8. TOLLING

In the event that I violate any provision of this Agreement, the obligations contained in
such provision will run from the date on which I ceased to be in violation of such
provision.

9. REFORMATION/SEVERABILITY

If a court determines that any provision of this Agreement contains an unenforceable
restriction, the court is requested and authorized to revise such provision to include the
maximum restriction allowed under applicable law. If any provision in this Agreement is
determined to be unenforceable and cannot be modified to be enforceable, such determination
shall not affect the validity of any other provision of this Agreement, and such other
provisions shall remain in full force and effect.

10. GOVERNING LAW

This Agreement shall be construed, interpreted and enforced in accordance with the internal
laws of the State of Illinois without regard to its conflict of law principals. I agree to
submit to the personal jurisdiction of any state court in Lake County, Illinois or federal
court in Illinois, and consent to service of process in connection with any action arising
out of this Agreement.

11. ASSIGNMENT

The Company may assign its rights under this Agreement to any successor in interest, whether
by merger, consolidation, sale of assets, or otherwise. This Agreement shall be binding
whether it is between me and the Company or between me and any successor or assigns of the
Company.

12. NO EFFECT ON TERM OF EMPLOYMENT

Nothing in this Agreement prevents or limits my right to terminate my employment at any time
for any reason, and nothing in this Agreement prevents or limits the Company from
terminating my employment at any time for any reason. I understand and agree that there
exist no promises or guarantees of permanent employment or employment for any specified term
by the Company.

13. NOTIFICATION TO OTHER PARTIES

So long as the non-competition and non-solicitation provisions of this Agreement remain in
effect, I agree to provide a copy of this Agreement, and consent to the Company’s providing
a copy of this Agreement, to any subsequent employer or potential employer of me, or other
interested party.

14. WAIVER OF JURY

To the fullest extent permitted by law, each party waives all rights to a trial by jury of
any claim or cause of action related to or arising out of this Agreement.

15. REMEDIES

I agree that irreparable harm would result from my breach or threat to breach this
Agreement, and monetary damages would not provide adequate relief. I agree that the Company
shall be entitled to seek and obtain temporary, preliminary, and permanent injunctive relief
restraining me from committing or continuing any breach without the Company’s posting a
bond. I further agree that I will liable for the amount of reasonable attorney’s fees
incurred by the Company in the proceeding if the Company prevails in a proceeding to protect
its rights under this Agreement.

16. ENTIRE AGREEMENT

I understand that this Agreement contains the entire agreement and understanding between the
Company and me with respect to the provisions contained in this Agreement, and that no
representations, promises, agreements, or understandings, written or oral, related thereto
which are not contained in this Agreement will be given any force or effect. No change or
modification of this Agreement will be valid or binding unless it is in writing and signed
by the party against whom the change or modification is sought to be enforced. I further
understand that even if the Company waives or fails to enforce any provision of this
Agreement in one instance, that will not constitute a waiver of any other provisions of this
Agreement at this time, or a waiver of that provision at any other time.

	 
	Employee:

	/s/Greg M. Carr

	 

	05/31/2011

	 

	Date

	APAC Customer Services, Inc.

/s/Michael V. Hoehne

	 

	By:Michael V. Hoehne

05/31/2011

	 

	Date:

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