Document:

Exhibit 10.23

Management Incentive Plan (MIP) 2006

Overview:

The 2006
Management Incentive Plan provides eligible participants with the opportunity
to earn incentive pay based upon one or more of the following factors:

·                  SITEL achieving its Earnings Per Share (EPS) target,

·                  The Business Unit achieving its Business Unit
Contribution (BUC) target, and

·                  The individual’s contribution toward achieving the BU/SITEL objectives

Eligible
participants are employees who are typically in Grade 15 and above.  Employees classified as a Manager and/or
Director, must also be a direct report to the Business Unit Leader or SWW
Division Head to be considered an eligible participant.

Incentive
Opportunity:

SITEL has chosen a
“percentage of base salary” as the appropriate target incentive
opportunity.  The table below shows the
applicable percentage at various grade levels.

	
  CEO, ExCo

  	
   

  	
  100% of base salary

  
	
  COOs (grade 19)

  	
   

  	
  40% of base salary

  
	
  BU
  Leaders/MDs/Global SVPs 

  (typically grades 16 – 19)

  	
   

  	
  30% of base salary

  
	
  VPs and Directors (typically grades 16 – 17)

  	
   

  	
  20% of base salary

  
	
  Managers (typically grade 15)

  	
   

  	
  15% of base salary

  

 

Incentive
Components:

MIP participants
within BUs have a target incentive opportunity that is split between an EPS
performance component and a BUC performance component.

The amount of the
split depends upon the level of employee. The higher the employee’s job grade
level, the greater the proportion of target incentive opportunity is based on
EPS.  The table below summarizes the
proportion of target incentive opportunity that is based on EPS and BUC.

	
  Level

  	
   

  	
  Incentive Based on

  EPS

  	
   

  	
  Incentive Based on

  BUC

  	
   

  
	
  CEO, ExCo, Group
  COOs, and Global SVPs 

  (Grades
  19)

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  
	
  SWW VPs,
  Directors, and Managers 

  (typically Grades 15-17)

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  
	
  BU Leaders/MDs 

  (typically
  Grades 16 – 18)

  	
   

  	
  40

  	
  %

  	
  60

  	
  %

  
	
  BU VPs, Directors, and
  Managers 

  (typically Grades 15-17)

  	
   

  	
  20

  	
  %

  	
  80

  	
  %

  

 

 

Incentive
Plan Thresholds (“Gatekeepers”):

To be eligible for
any award or payment based on either performance component (EPS or BUC),
certain threshold conditions must be met.

Revenue Growth
Threshold (BU Participants Only) — To maintain a high level of focus on revenue
growth, a minimum level of revenue growth has been defined.  A BU must achieve a minimum of 70% of planned
revenue growth before the plan participant is eligible for either the EPS or
BUC incentive payments.  “Planned revenue
growth” is the difference between the FY2005 actual revenues and the FY2006
budgeted revenues.  A BU that fails to
achieve at least 70% of planned revenue growth is ineligible for either an EPS
or BUC incentive payment.   If the
planned revenue growth of a BU is negative, that is, the FY2006 budgeted
revenues are less than FY2005, then the BU must not have a revenue decrease any
greater than the budgeted decrease in order to be eligible for an EPS or BUC
incentive payment.

EPS Threshold (All Participants) — In addition to the
Revenue Growth Threshold, the Compensation Committee of the Board of Directors
has defined a minimum level of EPS. 
SITEL must achieve a minimum EPS before the plan participant is
eligible for either the EPS or BUC incentive payment. This minimum EPS level is
necessary to fund the MIP, but does not guarantee a payout of any incentive
payments to plan participants.

EPS
Performance Component:

A low target
EPS, defined by the Compensation Committee of the Board of Directors, must be
met or exceeded to trigger the calculation of an EPS award amount.  At the low target EPS level, 30% of the
incentive opportunity (associated with the EPS component) is awarded (not
necessarily paid).  For each additional 1
cent (USD) of EPS above the low target EPS level, an additional 6% of the
incentive opportunity (associated with the EPS component) will be awarded, up
to a maximum incentive opportunity of 120% (associated with the EPS
component).  The award percentages at
various EPS levels are shown in the table below:

 2
 

 

 

	
  EPS Level

  	
   

  	
  Award Percentage for EPS

  Component of the Total 

  Incentive Opportunity

  	
   

  
	
  Low target

  	
   

  	
  30

  	
  %

  
	
  Low target + 1 cent

  	
   

  	
  36

  	
  %

  
	
  Low target + 2 cents

  	
   

  	
  42

  	
  %

  
	
  Low target + 3 cents

  	
   

  	
  48

  	
  %

  
	
  Low target + 4 cents

  	
   

  	
  54

  	
  %

  
	
  Low target + 5 cents

  	
   

  	
  60

  	
  %

  
	
  Low target + 6 cents

  	
   

  	
  66

  	
  %

  
	
  Low target + 7 cents

  	
   

  	
  72

  	
  %

  
	
  Low target + 8 cents

  	
   

  	
  78

  	
  %

  
	
  Low target + 9 cents

  	
   

  	
  84

  	
  %

  
	
  Low target + 10 cents

  	
   

  	
  90

  	
  %

  
	
  Low target + 11 cents

  	
   

  	
  96

  	
  %

  
	
  Low target + 12 cents

  	
   

  	
  102

  	
  %

  
	
  Low target + 13 cents

  	
   

  	
  108

  	
  %

  
	
  Low target + 14 cents

  	
   

  	
  114

  	
  %

  
	
  Greater than low target + 15 cents

  	
   

  	
  120

  	
  %

  

 

*For
purposes of this plan “target” payment will equal 96%

BUC
Performance Component (BU Participants Only):

Each BU has a Target
BUC expressed as a percentage of the BU’s revenue, together with a Low
Target BUC and High Target BUC. 
If the actual BUC performance is below the Low Target, no incentive
award is made for the BUC component.  If
the actual BUC performance is above the Low Target but below the Target, 75% of
the incentive opportunity (associated with the BUC component) is awarded (not
necessarily paid).  If the actual BUC
performance is at or above the Target but below the High Target, 100% of the
incentive opportunity (associated with the BUC component) is awarded (not
necessarily paid).  If the actual BUC
performance meets or exceeds the High Target, the maximum incentive opportunity
of 120% (associated with the BUC component) is awarded (not necessarily paid).
The award percentages at various BUC performance levels are shown in the table
below.

	
  BUC Performance Level

  	
   

  	
  Award Percentage for BUC

  Component of the Total 

  Incentive Opportunity

  	
   

  
	
  below Low Target

  	
   

  	
  0

  	
  %

  
	
  above Low Target & below Target

  	
   

  	
  75

  	
  %

  
	
  at or above Target

  	
   

  	
  100

  	
  %

  
	
  at or above High Target

  	
   

  	
  120

  	
  %

  

 

 3
 

 

Individual
Performance Impact on Incentive Payments (All Participants):

The actual amount of an
individual’s incentive award may be reduced due to personal performance.  Each MIP participant’s manager is to assess
the individual’s contribution to achieving the objectives of the
corporation.  The mechanism for making
this assessment is the individual’s performance review in which financial and
non-financial performance objectives are defined.  If the individual’s manager determines that
the individual’s performance was below expectations, the manager may reduce the
incentive award by a fraction or the entire amount.

All reductions in an
incentive award are to be reviewed by the appropriate HR manager to ensure the
completeness and accuracy of the MIP participant’s manager’s assessment.

Days Sales Outstanding (DSO) Impact on BUC
Incentive (BU Participants Only):

DSO has been added to the
MIP for 2006 due to the significant financial effect of deteriorating accounts
receivable effectiveness. Every day of additional consolidated DSO, SITEL must
borrow and pay interest on an additional $2.75 million.  A five day increase in DSO increases SITEL’s
total debt by 10% and interest expense by more than $1 million.

DSO is calculated by
dividing accounts receivable by the average daily revenue for the preceding
quarter. DSO will be measured at the end of each quarter in 2006. The average
of the four quarterly DSO values will be the DSO “performance of record” for
measurement against the target.  Each BU
will receive an individually determined target, approved in advance by the SWW
CFO, based upon their historic DSO performance and the Company’s overall
objective.

The DSO effect on BUC is
represented as a three percent (3%) reduction in BUC payment for each one
percent (1%) of DSO the BU is above their established target. The maximum
reduction for missing the target DSO is 30%.

For example, if a BU’s
DSO target has been set at 65 days and the average actual DSO over the four
quarters is 70 days, then the DSO target has been missed by 7.7% (70 – 65 = 5
divided by 65 = 7.7%)  Since the
reduction to BUC is calculated as a 3% reduction for every 1% above the target,
the actual reduction to the BUC incentive payout will be 23% (7.7% X 3% =
23.1%).

Incentive
Calculation Examples:

Example 1
— Business Unit Leader/Managing Director

The tables below
illustrate the incentive calculations for an employee with a base salary of
$100,000 and an incentive opportunity of 30% of base salary, under several
different EPS, BUC and DSO performance level achievement scenarios:  

Incentive Calculation Based on EPS Component

 

	
  Maximum Incentive 

  Opportunity

  	
   

  	
  Percentage of 

  Incentive Opportunity 

  Based on EPS

  	
   

  	
  EPS Performance Level 

  Scenarios

  	
   

  	
  Incentive Award Calculation as 

  % of Base Salary

  	
   

  	
  % of 

  Base

  	
   

  	
  Incentive 

  Award

  	
   

  
	
  30% of Base
  Salary

  	
   

  	
  40

  	
  %

  	
  Below
  minimum EPS

  	
   

  	
  (.30
  X .40) X .0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  target

  	
   

  	
  (.30
  X .40) X .30

  	
   

  	
  3.60

  	
  %

  	
  3,600

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  Target + 2 cents

  	
   

  	
  (.30
  X .40) X .42

  	
   

  	
  5.04

  	
  %

  	
  5,040

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  Target + 9 cents

  	
   

  	
  (.30
  X .40) X .84

  	
   

  	
  10.08

  	
  %

  	
  10,080

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low Target + 15 cents

  	
   

  	
  (.30 X .40) X 1.20

  	
   

  	
  14.40

  	
  %

  	
  14,400

  	
   

  

 4
 

 

Incentive
Calculation Based on BUC Component

	
  Maximum Incentive

  Opportunity

  	
   

  	
  Percentage of 

  Incentive Opportunity 

  Based on BUC

  	
   

  	
  BUC Performance Level

  Scenarios

  	
   

  	
  Incentive Award Calculation as

  % of Base Salary

  	
   

  	
  % of 

  Base

  	
   

  	
  Incentive 

  Award

  	
   

  
	
  30% of Base Salary

  	
   

  	
  60

  	
  %

  	
  Below
  Low Target = 0

  	
   

  	
  (.30
  X .60) * (.0)

  	
   

  	
  0.0

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Low Target =.75

  	
   

  	
  (.30
  X .60) * (.75)

  	
   

  	
  13.5

  	
  %

  	
  13,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Target = 1.0

  	
   

  	
  (.30
  X .60) * (1.00)

  	
   

  	
  18.0

  	
  %

  	
  18,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  > or = High Target =
  1.2

  	
   

  	
  (.30 X .60) * (1.20)

  	
   

  	
  21.6

  	
  %

  	
  21,600

  	
   

  

 

Incentive
Calculation Based on BUC and DSO Component

	
  Maximum Incentive

  Opportunity

  	
   

  	
  Percentage of 

  Incentive Opportunity 

  Based on BUC

  	
   

  	
  BUC Performance Level

  Scenarios

  	
   

  	
  Incentive 

  Award

  	
   

  	
  BUC Incentive 

  Payout IF DSO 3%

  above target (9% 

  reduction)

  	
   

  	
  BUC Incentive Payout 

  IF DSO 10% above 

  target (30% reduction

  	
   

  
	
  30% of Base
  Salary

  	
   

  	
  60

  	
  %

  	
  Below
  Low Target

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Low Target

  	
   

  	
  13,500

  	
   

  	
  12,285

  	
   

  	
  9,450

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Target

  	
   

  	
  18,000

  	
   

  	
  16,380

  	
   

  	
  12,600

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  > or = High Target

  	
   

  	
  21,600

  	
   

  	
  19,656

  	
   

  	
  15,120

  	
   

  

 

In the
examples above, the incentive awards shown are the maximum possible
payout.  For example, assuming an actual
EPS of Low Target + 2 cents and Target BUC performance, the EPS component
incentive award would be $5,040 and the BUC component incentive award would be
$18,000 for a total incentive award of $23,040. 
Assuming then that the DSO was on target, $23,040 would be the
calculated payment.  If the DSO was 3%
greater, the BUC calculation would be reduced to $$16,380 or a final calculated
payment of $21,420.  The MIP participant’s
manager might, through a performance review, determine that this person had
performed below expectations during the year such that the actual payment
should be reduced by $6,000, such that the actual incentive payment would be
$17,040 or $15,420 depending upon which DSO calculation is appropriate. Note
that the $6,000 reduction in this example does NOT become available to the
manager to pay to another individual.  A
MIP participant’s manager may decrease, but not increase, an incentive award
based upon individual performance.

Example 2 – Business Unit
Vice President or Director

The tables below
illustrate the incentive calculations for BU VP or Director with a base salary
of $100,000 and an incentive opportunity of 20% of base salary, under several
different EPS, BUC and DSO performance level achievement scenarios:

Incentive Calculation Based on EPS
Component

 

	
  Maximum Incentive

  Opportunity

  	
   

  	
  Percentage of 

  Incentive Opportunity 

  Based on EPS

  	
   

  	
  EPS Performance Level 

  Scenarios

  	
   

  	
  Incentive Award Calculation as

  % of Base Salary

  	
   

  	
  % of 

  Base

  	
   

  	
  Incentive 

  Award

  	
   

  
	
  20% of Base
  Salary

  	
   

  	
  20

  	
  %

  	
  Below
  minimum EPS

  	
   

  	
  (.20
  X .20) X  (.0)

  	
   

  	
  0

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  target

  	
   

  	
  (.20
  X .20) X .30

  	
   

  	
  1.20

  	
  %

  	
  1,200

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  Target + 2 cents

  	
   

  	
  (.20
  X .20) X .42

  	
   

  	
  1.68

  	
  %

  	
  1,600

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  Target + 9 cents

  	
   

  	
  (.20
  X .20) X .84

  	
   

  	
  3.36

  	
  %

  	
  3,360

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low Target + 15 cents

  	
   

  	
  (.20 X .20) X 1.20

  	
   

  	
  4.80

  	
  %

  	
  4,800

  	
   

  

 5
 

 

Incentive
Calculation Based on BUC Component

	
  Maximum Incentive

  Opportunity

  	
   

  	
  Percentage of 

  Incentive Opportunity 

  Based on BUC

  	
   

  	
  BUC Performance Level

  Scenarios

  	
   

  	
  Incentive Award Calculation as

  % of Base Salary

  	
   

  	
  % of 

  Base

  	
   

  	
  Incentive 

  Award

  	
   

  
	
  20% of Base
  Salary

  	
   

  	
  80

  	
  %

  	
  Below
  Min = zero

  	
   

  	
  (.2
  X .8) * (.0)

  	
   

  	
  0.0

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Low Target =  .75

  	
   

  	
  (.2
  X .8) * (.75)

  	
   

  	
  12.0

  	
  %

  	
  12,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Target =  1.0

  	
   

  	
  (.2
  X .8) * (1.0)

  	
   

  	
  16.0

  	
  %

  	
  16,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  > or = Over Target =
  1.2

  	
   

  	
  (.2 X .8) * (1.2)

  	
   

  	
  19.2

  	
  %

  	
  19,200

  	
   

  

 

Incentive
Calculation Based on BUC and DSO Component

	
  Maximum Incentive

  Opportunity

  	
   

  	
  Percentage of 

  Incentive Opportunity

  Based on BUC

  	
   

  	
  BUC Performance Level

  Scenarios

  	
   

  	
  Incentive 

  Award

  	
   

  	
  BUC Incentive Payout 

  IF DSO 3% above 

  target (9% reduction)

  	
   

  	
  BUC Incentive 

  Payout IF DSO 

  10% above target 

  (30% reduction)

  	
   

  
	
  20% of Base
  Salary

  	
   

  	
  80

  	
  %

  	
  Below
  Min

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Low Target

  	
   

  	
  12,000

  	
   

  	
  10,920

  	
   

  	
  8,400

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Target

  	
   

  	
  16,000

  	
   

  	
  14,560

  	
   

  	
  11,200

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  > or = Over Target

  	
   

  	
  19,200

  	
   

  	
  17,472

  	
   

  	
  13,440

  	
   

  

 

Example 3
– Business Unit Manager

The tables below
illustrate the incentive calculations for BU Manager with a base salary of
$75,000 and an incentive opportunity of 15% of base salary, under several
different EPS and BUC performance level achievement scenarios:

Incentive Calculation Based on EPS
Component

 

	
  Maximum Incentive

  Opportunity

  	
   

  	
  Percentage of 

  Incentive Opportunity 

  Based on EPS

  	
   

  	
  EPS Performance Level 

  Scenarios

  	
   

  	
  Incentive Award Calculation as 

  % of Base Salary

  	
   

  	
  % of 

  Base

  	
   

  	
  Incentive 

  Award

  	
   

  
	
  15% of Base
  Salary

  	
   

  	
  20

  	
  %

  	
  Below
  minimum EPS

  	
   

  	
  (.15
  X .20) X  .0

  	
   

  	
  0

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  target

  	
   

  	
  (.15
  X .20) X .30

  	
   

  	
  0.90

  	
  %

  	
  675

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  Target + 2 cents

  	
   

  	
  (.15
  X .20) X .42

  	
   

  	
  1.26

  	
  %

  	
  945

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  Target + 9 cents

  	
   

  	
  (.15
  X .20) X .84

  	
   

  	
  2.52

  	
  %

  	
  1,890

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low Target + 15 cents

  	
   

  	
  (.15 X .20) X 1.20

  	
   

  	
  3.60

  	
  %

  	
  2,700

  	
   

  

 

Incentive
Calculation Based on BUC Component

	
  Maximum Incentive

  Opportunity

  	
   

  	
  Percentage of 

  Incentive Opportunity 

  Based on BUC

  	
   

  	
  BUC Performance Level

  Scenarios

  	
   

  	
  Incentive Award Calculation 

  as % of Base Salary

  	
   

  	
  % of 

  Base

  	
   

  	
  Incentive 

  Award

  	
   

  
	
  15% of Base
  Salary

  	
   

  	
  80

  	
  %

  	
  Below
  Min =  zero

  	
   

  	
  (.15
  X .8) * (.0)

  	
   

  	
  0.0

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Low Target =  .75

  	
   

  	
  (.15
  X .8) * (.75)

  	
   

  	
  9.0

  	
  %

  	
  6,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Target =  1.0

  	
   

  	
  (.15
  X .8) * (1.0)

  	
   

  	
  12.0

  	
  %

  	
  9,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  > or = Over
  Target  = 1.2

  	
   

  	
  (.15 X .8) * (1.2)

  	
   

  	
  14.4

  	
  %

  	
  10,800

  	
   

  

 

 6
 

 

Incentive
Calculation Based on BUC and DSO Component

	
  Maximum Incentive

  Opportunity

  	
   

  	
  Percentage of 

  Incentive Opportunity 

  Based on BUC

  	
   

  	
  BUC Performance Level

  Scenarios

  	
   

  	
  Incentive

  Award

  	
   

  	
  BUC Incentive 

  Payout IF DSO 3% 

  above target (9% 

  reduction)

  	
   

  	
  BUC Incentive Payout 

  IF DSO 10% above 

  target (30% reduction)

  	
   

  
	
  15% of Base
  Salary

  	
   

  	
  80

  	
  %

  	
  Below
  Min

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Low Target

  	
   

  	
  6,750

  	
   

  	
  6,142

  	
   

  	
  4,725

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  >
  or = Target

  	
   

  	
  9,000

  	
   

  	
  8,190

  	
   

  	
  6,300

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  > or = Over Target

  	
   

  	
  10,800

  	
   

  	
  9,828

  	
   

  	
  7,560

  	
   

  

 

Example 4
– ExCO, Group COO’s, GSVP’s, Vice President or Director (Grade 15+)

The table below
illustrates the incentive calculation for an SWW VP or Director with a base
salary of $100,000, and the incentive opportunity of 20% of base salary, and
several different EPS achievement scenarios:

Incentive Calculation Based on EPS
Component

	
  Maximum Incentive

  Payment

  	
   

  	
  Percentage of 

  Incentive Opportunity 

  Based on EPS

  	
   

  	
  EPS Scenarios

  	
   

  	
  Incentive Payment Calculation

  - Resulting % of Base Salary

  	
   

  	
  % of 

  Base

  	
   

  	
  Incentive 

  Award

  	
   

  
	
  20% of Base Salary

  	
   

  	
  100

  	
  %

  	
  Below
  minimum EPS

  	
   

  	
  (.20
  X 1) X  .0

  	
   

  	
  0

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  target

  	
   

  	
  (.20
  X 1) X .30

  	
   

  	
  6.00

  	
  %

  	
  6,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  Target + 2 cents

  	
   

  	
  (.20
  X 1) X .42

  	
   

  	
  8.40

  	
  %

  	
  8,400

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low
  Target + 9 cents

  	
   

  	
  (.20
  X 1) X .84

  	
   

  	
  16.80

  	
  %

  	
  16,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Low Target + 10 cents

  	
   

  	
  (.20 X 1) X 1.20

  	
   

  	
  24.00

  	
  %

  	
  24,000

  	
   

  

 

In the
example above, the incentive award is the maximum possible payout.  For example, assuming an actual EPS of Low
Target + 2 cents, the incentive award would be $8,400.  The MIP participant’s manager might, through
a PACMan review, determine that this person had performed below expectations
during the year such that the actual payment should be reduced by $4,000, such
that the actual incentive payment would be $4,400. Note that the $4,000
reduction in this example does NOT become available to the manager to pay to
another individual.  A MIP participant’s
manager may decrease, but not increase, an incentive award based upon individual
performance.

Confidentiality:

This
plan is confidential and is not for publication or distribution internally
beyond the authorized distribution or outside of SITEL.

The EPS targets
referred to in this document represent “insider information” that cannot be
compromised by accidental disclosure; therefore, these EPS targets will be
communicated verbally to eligible participants. These targets are documented in
the meeting minutes of the Compensation Committee of the Board of Directors.

2006
MIP Guidance and Restrictions:

1.               This plan is a
privilege, and incentives come into effect only if the specified threshold
conditions of minimum EPS and revenue growth (applicable to BU participants),
EPS 

 7
 

 

targets, BUC targets and revenue growth objectives,
and DSO targets (applicable to BU participants) are met or exceeded.

2.               Participation in
this plan is completely voluntary. Participants must electronically acknowledge
their participation within the published notice period after receiving
electronic notification of their eligibility. Failure to electronically accept
the Plan and individual targets posted on SOL on or before the published
deadline will result in the eligible plan participant to have voluntarily
forfeited participation in the plan and any and all incentive pay outlined
herein.

3.               This plan
supersedes any and all prior oral or written arrangements, commitments, and
understandings regarding incentive pay between SITEL and the MIP
participant.  Any changes and/or
modifications to this MIP must be in writing and signed by the Exco.

4.               A MIP incentive opportunity is a percentage of
the participant’s annual base salary.  A
participant’s “annual base salary” excludes any non-standard payments
such as hiring bonuses, special incentive awards, draws, travel allowances,
ex-pat allowances, etc.

5.               Newly eligible
employees with an eligibility effective date on or after October 1, 2006 will
be reviewed for consideration in the MIP for the 2007 calendar year and will
not be eligible to participate in FY2006.

6.               MIP payments will
be pro-rated based on time spent at particular levels of salary and incentive
opportunity.  For example, a manager
grade level 15 who spends 6 months at a salary level of 75,000 with a 15%
maximum total incentive opportunity, who is promoted to a Director level for
the remaining 6 months of the year with a salary of 90,000 and a 20% maximum
total incentive opportunity would show the following calculation if all revenue
growth objectives, EPS objectives and BUC objectives were fully met.

.15 X 75,000 X 50% (i.e. 6 months of the year) = 5,625; Plus

..20 X 90,000 X 50% (i.e. 6 months of the year) = 9,000

Total pro-rated incentive opportunity = 14,625

7.               There are multiple EPS and BUC targets (or
performance levels) associated with the incentive opportunity for each
participant.  The targets are absolute
thresholds and there is no pro-rata incentive opportunity award between target
levels.

8.               EPS targets are
stated in whole cents (USD) per share as reported in the SEC filings of the
company.  EPS targets are calculated
after MIP payments and may include or exclude one-time gains/losses that affect
the fully diluted EPS reported.  The
Compensation Committee of the Board of Directors makes the decision as to what
one-time items may be included or excluded from EPS calculations used to
determine the MIP calculations. If the actual FY 2006 EPS (after MIP payments)
would be less than the minimum EPS defined by the Compensation Committee of the
Board of Directors, all MIP incentives will be proportionally reduced to ensure
that the EPS (after MIP payments) is no less than the minimum EPS.

 8
 

 

9.     MIP incentives are paid on a yearly basis,
after the close of the fiscal year and public announcement of the fiscal year
earnings.

10.   BUC targets are stated as a percentage of the
BU’s revenue, accurate and rounded to two decimal points.  Revenue growth objectives are stated in local
currency.  The BUC targets for
each BU are set by the appropriate COO and approved by the ExCo and may be
different from the budget for FY2006. 
Only the ExCo may approve BUC and DSO targets.

11.   If a question arises regarding SITEL’s
calculation of incentive pay and/or denial of incentive pay, all concerns must
be directed in writing to the ExCo clearly outlining your position and authority
supporting your position.  All written
appeals should be received by ExCo within 30 days after the decision awarding
and/or denying incentive pay under the Plan. 
The ExCo will review any and all written communication and make a final
and binding decision on your entitlement to incentive pay within 30 days of
receiving the appeal.

12.   Unless
otherwise provided by state or
local law, participants in the FY2006 MIP must be employed at SITEL at the time
the payment of incentives is made and have not, himself or herself, served
notice of termination at the time the payment falls due.  If a participant is terminated or leaves
his/her employment at SITEL prior to the payment of incentives, the person is
not entitled to any MIP payment.

13.   ExCo’s
written approval is required for
any additions to the list of eligible participants in the MIP and any
exceptions to the 2006 MIP Plan opportunity matrix.

14.   Eligible
participants are employees who are typically in Grade 15 and above.  Employees classified as a Manager and/or Director, must also be a direct report
to the Business Unit Leader or SWW Division Head to be considered an eligible
participant.  Any requested exceptions,
for example, grade 15 and above sales employees, must be approved in writing,
by name and incentive opportunity, by the ExCo.

15.   Nothing
in this document is meant to create a contract of employment for one year or
for any specific period of time.  All
SITEL employees remain “employees at will”, and either SITEL or the employee
may terminate the relationship at any time, with or without cause, unless
statutory provisions in the relevant country dictate otherwise, and unless, if
applicable, otherwise specified in the employee’s individual written employment
agreement and subject to any notice periods in such individual written
employment agreement.

16.   Unless
otherwise provided by state or
local law, SITEL reserves the right to withhold any incentive payments under
this plan in individual cases in the event an employee’s performance review is
not completed by the established FY2006 deadline.

17.   Unless
otherwise provided by state or
local law, SITEL reserves the right to withhold or pro-rate any incentive
payments under this plan in individual cases in the event an employee’s
performance does not comply with SITEL’s core values as stated in the 

 9
 

 

company’s literature, SITEL’s policies and procedures
as stated in Parachute, or the SITEL Leadership Model as defined in SITEL’s
performance management program.  This
reserved right is in addition to any other disciplinary action SITEL may deem
appropriate. Any such performance deficiency will wherever possible be
communicated in advance of the end of the measurement period. Payment
eligibility under the FY2006 MIP may be resumed upon correction of the performance
deficiency.

18.   SITEL
reserves the right to amend or discontinue the FY2006 MIP at any time.

19.   Excluding
EPS, which is a measurement, determined solely by the Compensation Committee of
the Board of Directors, the determination whether any financial objective under
the FY 2006 MIP has been met or exceeded shall rest with ExCo, whose
determination shall be final.

22.   The
ExCo has the right to adjust individual MIP payment criteria, within the limits
set by the Compensation Committee, to accommodate unusual situations that may
arise due to reassignment of MIP participants to different BUs or different
roles within SITEL, or any other unforeseen circumstances that were not
contemplated at the time of adoption of this MIP.

 10
 

 

MANAGEMENT
INCENTIVE PLAN (MIP) 2006 ACKNOWLEDGEMENT

I acknowledge that I have
read, understand and accept the Management Incentive Plan (“MIP”) 2006.  I further acknowledge that the applicable
EPS, BUC, DSO and individual targets as well as all other applicable
targets/goals have been communicated to me.

I also understand that
this plan supersedes all previous written and unwritten compensation
plans.  I further acknowledge that only
the ExCo has the right to adjust, modify and/or change individual incentive
compensation plans. Any changes and/or modifications to this MIP must be in
writing and signed by the ExCo.  I
understand that nothing in this MIP in any way creates an express or implied
contract of any kind between SITEL and any other employee.  I acknowledge that the terms and conditions
of the MIP are considered confidential proprietary information in the strictest
confidence and not to disclose it to any person, firm or corporation without
the express written permission from the Exco.

	
  

  	
   

  	
   

  	
   

  
	
  Participant Signature

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Printed Participant Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  HR Signature

  	
   

  	
  Date

  	
   

  

 

	
  BUC Performance Levels

  	
   

  	
  Percentage of BUC

  
	
  BUC Low
  Target

  	
   

  	
   

  
	
  BUC
  Target

  	
   

  	
   

  
	
  BUC
  High Target

  	
   

  	
   

  
	
  DSO
  Target

  	
   

  	
   

  

 

 11Exhibit
10.32

Notice
of Grant of Stock Options &

Signature Page to the Option Agreement

SITEL
Corporation

ID:  47-0684333

7277 World Communications
Drive

Omaha, Nebraska 68122

(402) 963-6810

	
  

  	
  Option Number:

  
	
   

  	
  Plan:

  
	
   

  	
  ID:

  
	
   

  	
   

  
	
   

  	
   

  

 

You have been
granted an option pursuant to the SITEL Corporation 1999 Stock Incentive Plan,
as amended (the “Plan”).

The terms of the
option are evidenced in the attached Option Agreement, to which this Notice of
Grant of Stock Options serves as the signature page.  The following terms when used in the Option
Agreement have the meanings set forth below:

	
  Optionee:

  	
   

  	
   

  
	
  Number of Option Shares:

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
  February 1, 2006

  
	
  Option Exercise Price:

  	
   

  	
  $3.41

  
	
  Latest Expiration Date:

  	
   

  	
  February 1, 2016

  

 

The date or dates
on which the option becomes exercisable is governed by Section 3 of the Option
Agreement, subject to additional terms and conditions set forth in the Option
Agreement and the Plan.  In no event
shall the option be exercisable after the Latest Expiration Date.

By your signature
and the Company’s signature below, you and the Company agree that the option
whose terms are evidenced in the attached Option Agreement has been granted
under and is governed by the terms and conditions of the Plan, and that you
have received a copy of the Plan and the Option Agreement. You specifically
acknowledge the governing laws of Nebraska and the exclusive jurisdiction of
the Nebraska courts as set forth in Sections 10 and 11 of the Option Agreement.

	
  

  	
   

  	
  February 1, 2006

  	
   

  
	
   

  	
  , SITEL Corporation

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Optionee]

  	
   

  	
  Date

  
					

 

 

OPTION AGREEMENT

(Incentive Stock Option)

SITEL
CORPORATION

1999 STOCK INCENTIVE PLAN

THIS AGREEMENT entered into as of the Grant Date
between SITEL Corporation, a Minnesota corporation (the “Company”) and
Optionee.  Certain capitalized terms used
herein are defined in the attached Notice of Grant of Stock Options, which
serves as the signature page to this Option Agreement and is incorporated
herein by this reference.  All other
capitalized terms used and not otherwise defined herein shall have the meanings
given them in the SITEL Corporation 1999 Stock Incentive Plan, as amended (“Plan”).

1.             Grant
of Option.  The Company hereby grants
to Optionee an Incentive Stock Option (the “Option”) to purchase, up to and
including in the aggregate, that number of shares of voting common stock of the
Company, with a par value of $.001 each (the “Stock”) equal to the Number of
Option Shares at the Option Exercise Price, subject in all respects to the
terms and provisions of the Plan, which has been adopted by the Company and
which is incorporated herein by reference.

2.             Option
Exercise Price.  The Option Exercise
Price represents the Fair Market Value of a share of the Stock on the Grant
Date as determined in accordance with the Plan.

3.             When
Option Is Exercisable.  This Option
shall become  exercisable only as
provided for in this Section 3.

(a)           Exercisability Contingent on
Performance.

If the Company’s diluted
earnings per share (“EPS”) for the calendar year ending December 31, 2006 meets
or exceeds one or more of the levels specified in the table below (the “Performance
Levels”), then the percentage in such table of the Number of Option Shares
corresponding to the highest EPS level achieved for such year shall become
exercisable immediately upon the date that the Company reports its EPS on Form
10-K for the following calendar year ending December 31, 2007.  For avoidance of doubt, exercisability of
such options is deferred until after such reporting of EPS for fiscal 2007.

If the Company’s EPS for
the calendar year ending December 31, 2007 meets or exceeds one or more of the
Performance Levels, then the percentage in such table of the Number of Option
Shares corresponding to the highest EPS level achieved for such year, less the
percentage which became exercisable in accordance with the preceding paragraph
of this Section 3, shall become exercisable immediately upon the date that the
Company reports its EPS on Form 10-K for the calendar year ending December 31,
2007.

If the Company’s EPS for
the calendar year ending December 31, 2008 meets or exceeds one or more of the
Performance Levels, then the percentage in such table of the Number of Option
Shares corresponding to the highest EPS level achieved for such year, less the
aggregate percentage which became exercisable in accordance with the preceding
two paragraphs of this Section 3, shall become exercisable immediately upon the
date that the Company reports its EPS on Form 10-K for the calendar year ending
December 31, 2008.

 

 

	
  EPS

  	
   

  	
  Percentage of Number

  Of Option Shares That Becomes

  Exercisable

  	
   

  
	
  $0.      

  	
   

  	
  100

  	
  %

  
	
  $0.      

  	
   

  	
  80

  	
  %

  
	
  $0.      

  	
   

  	
  50

  	
  %

  

 

If the Company’s EPS for
the calendar years ending December 31, 2006, 2007 and 2008 fails to meet or
exceed at least one of the Performance Levels specified in the above table,
then none of the Number of Option Shares shall become exercisable.

(b)           Earnings Per Share Determination.  Should there be any issue, the Committee
shall make the determination, which shall be final, binding and conclusive,
what is the highest Performance Level, if any, that has been achieved for any
calendar year.  EPS shall be as
determined in accordance with U.S. GAAP and reported in the Company’s Form 10-K
for the applicable calendar year; provided, however, that the Committee, in its
discretion, may determine that one or more items of one-time gain or loss shall
be excluded in the determination of EPS for a particular calendar year for
purposes of this Option and all other options having the same Grant Date.

(c)           Expiration of Portion of Option
That Does Not Become Exercisable. 
Any portion of the Number of Option Shares that has not become
exercisable by the date that the Company files its Form 10-K for the calendar
year ended December 31, 2008 shall immediately expire on such date.

(d)           Exercise of Portion of Option That
Becomes Exercisable.  Once any portion
of the Number of Option Shares becomes exercisable, it shall remain exercisable
until expiration, cancellation, or termination of this Option.  This Option may not be exercised after the
Latest Expiration Date and may be exercised during its term only in accordance
with the other provisions of this Option Agreement and the terms of the Plan.

4.             Effect
of Termination of Employment.  If
this Option is then in effect, it shall terminate earlier than the Latest
Expiration Date upon the events described below:

(a)           Termination of Employment For
Cause.  If the employment of Optionee
with the Company or any Subsidiary is terminated by the Company or such
Subsidiary for cause as determined by the Committee, then this Option shall
terminate immediately upon such termination of employment.

(b)           Termination of Employment Because
of Death.  If Optionee dies while
employed by the Company or any Subsidiary, or within three (3) months after the
termination of employment of Optionee with the Company or any Subsidiary other than
for cause, then the following provisions shall apply.  Any portion of this Option which has not
become exercisable under Section 3 as of the date of such termination of
employment shall terminate immediately upon such termination of employment. Any
portion of this Option which has become exercisable under Section 3 as of the
date of such termination of employment shall remain exercisable until the one
year anniversary of the date of such termination of employment (but in any
event no later than the Latest Expiration Date), at which time it shall
terminate.  Any such exercise of the
Option following Optionee’s death

 2
 

 

shall be made only by the
deceased Optionee’s executor or administrator or other duly appointed
representative reasonably acceptable to the Committee, unless the deceased
Optionee’s Will specifically devises such Option, in which case such exercise
shall be made only by the beneficiary of such specific devise.  If a deceased Optionee’s personal
representative or the beneficiary of a specific devise under such deceased
Optionee’s Will is entitled to exercise any Option pursuant to the preceding
sentence, then such representative or beneficiary shall be bound by all of the
terms and provisions of the Plan and the applicable Option Agreement which
would have applied to the deceased Optionee.

(c)          Termination of Employment Other
Than For Cause or Because of Death. 
If Optionee’s employment with the Company or any Subsidiary terminates
for any reason other than death or termination by Company for cause, then the
following provisions shall apply.  Any
portion of this Option which has not become exercisable under Section 3 as of
the date of such termination of employment shall terminate immediately upon
such termination of employment.  Any
portion of this Option which has become exercisable under Section 3 as of the
date of such termination of employment shall remain exercisable until the
three-month anniversary of the date of such termination of employment (but in
any event no later than the Latest Expiration Date), at which time it shall
terminate.

Optionee
shall be deemed to have a “termination of employment” upon his or her ceasing
to be employed by any of the Company or a Subsidiary or by a corporation
assuming this Option in a transaction to which Section 424(a) of the Code
applies.  The Committee (or its delegatee
under the Plan) shall have the right to determine whether any leave of absence
constitutes a termination of employment for purposes of this Option.  The Committee (or its delegatee under the
Plan) shall have the right to determine whether the termination of employment
of Optionee is a dismissal for cause and the date of termination in such case,
which date the Committee may retroactively deem to be the date of the event
that constitutes cause for dismissal. 
Such determinations of the Committee shall be final, binding, and
conclusive.

5.             Manner
of Exercise.  As to any portion or
all of this Option which is then exercisable, this Option shall be exercised by
Optionee delivering all of the following to the Company prior to the
expiration, cancellation or termination of this Option:  (a) a written notice of exercise duly signed
by Optionee, in the form or manner determined by the Company (which may include
electronic exercise); and (b) a certified or cashier’s check (or other form of
payment which is satisfactory to the Company in its sole discretion)
representing full payment of the Option Exercise Price for the shares of Stock
being purchased.  Optionee acknowledges
that before any shares will be delivered to Optionee pursuant to exercise of
this Option, provision must be made for the satisfaction of all requirements,
if any, for withholding taxes, either by the Optionee paying to the Company the
amount of withholding taxes or, if the Company consents, by withholding from
the shares issued to Optionee the number of shares having a value equal to the
withholding taxes due.

6.             Non-Transferability.  This Option may not be transferred in any
manner otherwise than by Will or the laws of descent and distribution, and may
be exercised during the lifetime of the Optionee only by the Optionee or his or
her legal representative.  The terms of
this Option Agreement shall be binding upon the executors, administrators, heirs,
successors, and assigns of the Optionee.

7.             Subject
to Plan.  Optionee acknowledges
receipt of a copy of the Plan and represents that he or she is familiar with
the terms and provisions thereof. 
Optionee accepts this Option subject to all the terms and provisions of
the Plan.   Optionee agrees to accept as
binding, conclusive, and final all decisions and interpretations of the
Committee upon any questions arising under the Plan or this Option Agreement.

 3
 

 

8.             No
Rights as Shareholder.  Optionee
shall have no rights as a shareholder in respect of shares of Stock as to which
this Option shall not have been duly exercised and all payments and other
deliveries therefor made as provided in Section 5 and shall have no rights with
respect to such shares of Stock which are not expressly conferred by the Plan.

9.             No
Right to Continued Retention as Employee. 
Nothing in this Option Agreement shall confer or be deemed to confer
upon Optionee the right to continue in the employ of the Company or any
Subsidiary which employs Optionee or affect the right of the Company or any
Subsidiary which employs Optionee to terminate the employment of Optionee with
or without cause.

10.           Governing
Law.  This Agreement shall be
governed by and construed under the laws of the State of Nebraska, without
reference to the conflict of laws principles of such State.

11.           Venue.  With respect to any claim arising out of this
Option, Optionee hereby (a) irrevocably submits to the exclusive jurisdiction
of the courts of the State of Nebraska and the United States District Court
located in the City of Omaha, Nebraska; (b) irrevocably waives any objection
which Optionee may have at any time to the venue of any suit, action or
proceeding arising out of or relating to this Option Agreement brought in any
such court and irrevocably waives any claim that such suit, action or
proceeding is brought in an inconvenient forum; and (c) irrevocably waives the
right to object, with respect to such claim, suit, action or proceeding brought
in any such court, that such court does not have jurisdiction over Optionee.

12.           Waiver.  Nothing in the Plan or in the Optionee’s
contract of employment shall be construed as giving Optionee a right to be
designated for participation in the Plan or to receive, or be considered for,
an option under the Plan.  Options
granted pursuant to the Plan and this Agreement are voluntarily granted by the
Company, and Optionee has no legal claim to continued grants of such
options.  The Company may amend or
terminate the Plan at any time.  Neither
an option nor the shares to which it relates shall be pensionable for any
purpose.  The rights and obligations of
Optionee under the terms or conditions of his or her office or employment shall
not be affected by Optionee’s participation in the Plan or any right Optionee
may have to participate in the Plan.  An
Optionee who participates in the Plan waives all and any rights to compensation
or damages in consequence of the termination of Optionee’s office or employment
with SITEL or any Subsidiary whether lawfully or in breach of contract insofar
as those rights arise, or may arise, from Optionee ceasing to have rights
under, or be entitled to exercise this Option or any other option under, the
Plan as a result of such termination or from the loss or diminution in value of
such rights or entitlement.  If
necessary, Optionee’s terms of employment shall be varied accordingly.

13.           Severability.  If a provision of this Option is or becomes
invalid in whole or in part or if there is an omission in this Option, the
validity of the remaining provisions shall not be affected.  In place of the invalid provision and to fill
in an omission an appropriate provision shall be effective which, to the extent
legally possible, most closely reflects the intention of the contractual
parties if they had considered this point. 
If a provision is invalid due to a measurement of duty of time (deadline
or date), it shall be replaced with a provision containing the nearest
measurement allowed by law.

14.           Acceleration.  Upon the occurrence of any of the events
described in the first sentence of Section 13(b) of the Plan (a “Change of
Control”), any remaining portion of this Option which had not yet become
exercisable shall become exercisable upon the effective date of such Change of
Control.

 4
 

 

15.           Designation as Incentive Stock
Option.  This Option is intended to
qualify, to the maximum extent possible, for special federal income tax
treatment pursuant to Sections 421 and 422 of the Internal Revenue Code of
1986, as now in existence or subsequently amended (the “Code”), or pursuant to
a successor provision of the Code. Currently, Section 422 of the Code permits
an Incentive Stock Option to be issued to the extent that the aggregate Fair
Market Value (determined as of the time the Incentive Stock Option is granted)
of the Stock with respect to which such Incentive Stock Option is first
exercisable by Optionee during any calendar year is not greater than $100,000.
This Option is within such limits and accordingly is hereby designated as an
Incentive Stock Option. Optionee shall notify the Company of any disposition of
shares of stock issued pursuant to the exercise of this Option under the
circumstances described in Section 421(b) of the Code (relating to certain
disqualifying dispositions) within ten (10) days after such disposition.

[End of document]

 5

 

Notice
of Grant of Stock Options &

Signature Page to the Option Agreement

SITEL
Corporation

ID:  47-0684333

7277 World Communications
Drive

Omaha, Nebraska 68122

(402) 963-6810

	
  

  	
  Option Number:

  
	
   

  	
  Plan:

  
	
   

  	
  ID:

  
	
   

  	
   

  
	
   

  	
   

  

 

You have been
granted an option pursuant to the SITEL Corporation 1999 Stock Incentive Plan,
as amended (the “Plan”).

The terms of the
option are evidenced in the attached Option Agreement, to which this Notice of
Grant of Stock Options serves as the signature page.  The following terms when used in the Option
Agreement have the meanings set forth below:

	
  Optionee:

  	
   

  	
   

  
	
  Number of Option Shares:

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
  February 1, 2006

  
	
  Option Exercise Price:

  	
   

  	
  $3.41

  
	
  Latest Expiration Date:

  	
   

  	
  February 1, 2018

  

 

The date or dates
on which the option becomes exercisable is governed by Section 3 of the Option
Agreement, subject to additional terms and conditions set forth in the Option
Agreement and the Plan.  In no event
shall the option be exercisable after the Latest Expiration Date.

By your signature
and the Company’s signature below, you and the Company agree that the option
whose terms are evidenced in the attached Option Agreement has been granted
under and is governed by the terms and conditions of the Plan, and that you
have received a copy of the Plan and the Option Agreement. You specifically
acknowledge the governing laws of Nebraska and the exclusive jurisdiction of
the Nebraska courts as set forth in Sections 10 and 11 of the Option Agreement.

	
  

  	
   

  	
  February 1, 2006

  	
   

  
	
   

  	
  , SITEL Corporation

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Optionee]

  	
   

  	
  Date

  
					

 

 

OPTION
AGREEMENT

(Non-Qualified Stock Option)

SITEL CORPORATION

1999 STOCK INCENTIVE PLAN

THIS
AGREEMENT entered into as of the Grant Date between SITEL Corporation, a
Minnesota corporation (the “Company”) and Optionee.  Certain capitalized terms used herein are
defined in the attached Notice of Grant of Stock Options, which serves as the
signature page to this Option Agreement and is incorporated herein by this
reference.  All other capitalized terms
used and not otherwise defined herein shall have the meanings given them in the
SITEL Corporation 1999 Stock Incentive Plan, as amended (“Plan”).

1.             Grant of Option. 
The Company hereby grants to Optionee a Non-Qualified Stock Option (the “Option”)
to purchase, up to and including in the aggregate, that number of shares of
voting common stock of the Company, with a par value of $.001 each (the “Stock”)
equal to the Number of Option Shares at the Option Exercise Price, subject in
all respects to the terms and provisions of the Plan, which has been adopted by
the Company and which is incorporated herein by reference.

2.             Option Exercise Price.  The Option Exercise Price represents the Fair
Market Value of a share of the Stock on the Grant Date as determined in
accordance with the Plan.

3.             When Option Is Exercisable.  This Option shall become  exercisable only as provided for in this Section
3.

(a)           Exercisability
Contingent on Performance.

If the Company’s
diluted earnings per share (“EPS”) for the calendar year ending December 31,
2006 meets or exceeds one or more of the levels specified in the table below
(the “Performance Levels”), then the percentage
in such table of the Number of Option Shares corresponding to the highest EPS
level achieved for such year  shall
become exercisable immediately upon the date that the Company reports its EPS
on Form 10-K for the following calendar year ending December 31, 2007.  For avoidance of doubt, exercisability of
such options is deferred until after such reporting of EPS for fiscal 2007.

If the Company’s
EPS for the calendar year ending December 31, 2007 meets or exceeds one or more
of the Performance Levels, then the percentage
in such table of the Number of Option Shares corresponding to the highest EPS
level achieved for such year, less the percentage which became
exercisable in accordance with the preceding paragraph of this Section 3, shall become exercisable immediately upon the
date that the Company reports its EPS on Form 10-K for the calendar year ending
December 31, 2007.

If the Company’s
EPS for the calendar year ending December 31, 2008 meets or exceeds one or more
of the Performance Levels, then the percentage
in such table of the Number of Option Shares corresponding to the highest EPS
level achieved for such year, less the aggregate percentage which became
exercisable in accordance with the preceding two paragraphs of this Section 3, shall become exercisable immediately upon the
date that the Company reports its EPS on Form 10-K for the calendar year ending
December 31, 2008.

 

 

	
  EPS

  	
   

  	
  Percentage of Number

  Of Option Shares That Becomes

  Exercisable

  	
   

  
	
  $0.    

  	
   

  	
  100

  	
  %

  
	
  $0.    

  	
   

  	
  80

  	
  %

  
	
  $0.    

  	
   

  	
  50

  	
  %

  

 

If the Company’s
EPS for the calendar years ending December 31, 2006, 2007 and 2008 fails to
meet or exceed at least one of the Performance Levels specified in the above
table, then none of the Number of Option Shares shall become exercisable.

(b)         Earnings Per Share Determination.  Should there be any issue, the Committee
shall make the determination, which shall be final, binding and conclusive,
what is the highest Performance Level, if any, that has been achieved for any
calendar year.  EPS shall be as
determined in accordance with U.S. GAAP and reported in the Company’s Form 10-K
for the applicable calendar year; provided, however, that the Committee, in its
discretion, may determine that one or more items of one-time gain or loss shall
be excluded in the determination of EPS for a particular calendar year for
purposes of this Option and all other options having the same Grant Date.

(c)          Expiration of Portion of Option That Does Not Become
Exercisable.  Any portion of the
Number of Option Shares that has not become exercisable by the date that the
Company files its Form 10-K for the calendar year ended December 31, 2008 shall
immediately expire on such date.

(d)         Exercise of Portion of Option That Becomes Exercisable.  Once any portion of the Number of Option
Shares becomes exercisable, it shall remain exercisable until expiration,
cancellation, or termination of this Option. 
This Option may not be exercised after the Latest Expiration Date and
may be exercised during its term only in accordance with the other provisions
of this Option Agreement and the terms of the Plan.

4.             Effect of Termination of
Employment.  If this Option is then in effect, it shall
terminate earlier than the Latest Expiration Date upon the events described
below:

(a)          Termination of Employment For Cause.  If the employment of Optionee with the
Company or any Subsidiary is terminated by the Company or such Subsidiary for
cause as determined by the Committee, then this Option shall terminate immediately
upon such termination of employment.

(b)         Termination of Employment Because of Death.  If Optionee dies while employed by the
Company or any Subsidiary, or within three (3) months after the termination of
employment of Optionee with the Company or any Subsidiary other than for cause,
then the following provisions shall apply. 
Any portion of this Option which has not become exercisable under
Section 3 as of the date of such termination of employment shall terminate
immediately upon such termination of employment. Any portion of this Option
which has become exercisable under Section 3 as of the date of such termination
of employment shall remain exercisable until the one year anniversary of the
date of such termination of employment (but in any event no later than the
Latest Expiration Date), at which time it shall terminate.  Any such exercise of the Option following
Optionee’s death shall be made only by the deceased Optionee’s executor or
administrator or other duly appointed

 2
 

 

representative reasonably acceptable to the Committee, unless the
deceased Optionee’s Will specifically devises such Option, in which case such
exercise shall be made only by the beneficiary of such specific devise.  If a deceased Optionee’s personal
representative or the beneficiary of a specific devise under such deceased
Optionee’s Will is entitled to exercise any Option pursuant to the preceding
sentence, then such representative or beneficiary shall be bound by all of the
terms and provisions of the Plan and the applicable Option Agreement which
would have applied to the deceased Optionee.

(c)          Termination of Employment Other Than For Cause or
Because of Death.  If Optionee’s
employment with the Company or any Subsidiary terminates for any reason other
than death or termination by Company for cause, then the following provisions
shall apply.  Any portion of this Option
which has not become exercisable under Section 3 as of the date of such
termination of employment shall terminate immediately upon such termination of
employment.  Any portion of this Option
which has become exercisable under Section 3 as of the date of such termination
of employment shall remain exercisable until the three-month anniversary of the
date of such termination of employment (but in any event no later than the
Latest Expiration Date), at which time it shall terminate.

Optionee shall be deemed to have
a “termination of employment” upon his or her ceasing to be employed by any of
the Company or a Subsidiary or by a corporation assuming this Option in a
transaction to which Section 424(a) of the Code applies.  The Committee (or its delegatee under the
Plan) shall have the right to determine whether any leave of absence
constitutes a termination of employment for purposes of this Option.  The Committee (or its delegatee under the
Plan) shall have the right to determine whether the termination of employment
of Optionee is a dismissal for cause and the date of termination in such case,
which date the Committee may retroactively deem to be the date of the event
that constitutes cause for dismissal. 
Such determinations of the Committee shall be final, binding, and
conclusive.

5.             Manner of Exercise.  As to any portion or all of this Option which
is then exercisable, this Option shall be exercised by Optionee delivering all
of the following to the Company prior to the expiration, cancellation or
termination of this Option:  (a) a
written notice of exercise duly signed by Optionee, in the form or manner
determined by the Company (which may include electronic exercise); and (b) a
certified or cashier’s check (or other form of payment which is satisfactory to
the Company in its sole discretion) representing full payment of the Option
Exercise Price for the shares of Stock being purchased.  Optionee acknowledges that before any shares
will be delivered to Optionee pursuant to exercise of this Option, provision
must be made for the satisfaction of all requirements, if any, for withholding
taxes, either by the Optionee paying to the Company the amount of withholding
taxes or, if the Company consents, by withholding from the shares issued to
Optionee the number of shares having a value equal to the withholding taxes
due.

6.             Non-Transferability.  This Option may not be transferred in any
manner otherwise than by Will or the laws of descent and distribution, and may
be exercised during the lifetime of the Optionee only by the Optionee or his or
her legal representative.  The terms of
this Option Agreement shall be binding upon the executors, administrators,
heirs, successors, and assigns of the Optionee.

7.             Subject to Plan.  Optionee acknowledges receipt of a copy of
the Plan and represents that he or she is familiar with the terms and
provisions thereof.  Optionee accepts
this Option subject to all the terms and provisions of the Plan.   Optionee agrees to accept as binding,
conclusive, and final all decisions and interpretations of the Committee upon
any questions arising under the Plan or this Option Agreement.

 3
 

 

8.             No Rights as Shareholder.  Optionee shall have no rights as a
shareholder in respect of shares of Stock as to which this Option shall not
have been duly exercised and all payments and other deliveries therefor made as
provided in Section 5 and shall have no rights with respect to such shares of
Stock which are not expressly conferred by the Plan.

9.             No Right to Continued Retention
as Employee.  Nothing in this Option
Agreement shall confer or be deemed to confer upon Optionee the right to
continue in the employ of the Company or any Subsidiary which employs Optionee
or affect the right of the Company or any Subsidiary which employs Optionee to
terminate the employment of Optionee with or without cause.

10.           Governing Law.  This Agreement shall be governed by and
construed under the laws of the State of Nebraska, without reference to the
conflict of laws principles of such State.

11.           Venue.  With respect to any claim arising out of this
Option, Optionee hereby (a) irrevocably submits to the exclusive jurisdiction
of the courts of the State of Nebraska and the United States District Court
located in the City of Omaha, Nebraska; (b) irrevocably waives any objection
which Optionee may have at any time to the venue of any suit, action or
proceeding arising out of or relating to this Option Agreement brought in any
such court and irrevocably waives any claim that such suit, action or
proceeding is brought in an inconvenient forum; and (c) irrevocably waives the
right to object, with respect to such claim, suit, action or proceeding brought
in any such court, that such court does not have jurisdiction over Optionee.

12.           Waiver.  Nothing in the Plan or in the Optionee’s
contract of employment shall be construed as giving Optionee a right to be
designated for participation in the Plan or to receive, or be considered for,
an option under the Plan.  Options
granted pursuant to the Plan and this Agreement are voluntarily granted by the
Company, and Optionee has no legal claim to continued grants of such
options.  The Company may amend or
terminate the Plan at any time.  Neither
an option nor the shares to which it relates shall be pensionable for any
purpose.  The rights and obligations of
Optionee under the terms or conditions of his or her office or employment shall
not be affected by Optionee’s participation in the Plan or any right Optionee
may have to participate in the Plan.  An
Optionee who participates in the Plan waives all and any rights to compensation
or damages in consequence of the termination of Optionee’s office or employment
with SITEL or any Subsidiary whether lawfully or in breach of contract insofar
as those rights arise, or may arise, from Optionee ceasing to have rights
under, or be entitled to exercise this Option or any other option under, the
Plan as a result of such termination or from the loss or diminution in value of
such rights or entitlement.  If
necessary, Optionee’s terms of employment shall be varied accordingly.

13.           Severability.  If a provision of this Option is or becomes
invalid in whole or in part or if there is an omission in this Option, the
validity of the remaining provisions shall not be affected.  In place of the invalid provision and to fill
in an omission an appropriate provision shall be effective which, to the extent
legally possible, most closely reflects the intention of the contractual parties
if they had considered this point.  If a
provision is invalid due to a measurement of duty of time (deadline or date),
it shall be replaced with a provision containing the nearest measurement
allowed by law.

14.           Acceleration.  Upon the occurrence of any of the events
described in the first sentence of Section 13(b) of the Plan (a “Change of
Control”), any remaining portion of this Option which had not yet become
exercisable shall become exercisable upon the effective date of such Change of
Control.

[End of document]

 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]