Document:

Exhibit 10.16

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the
“Agreement”) is made and entered into as of March 31, 2004, by and among Aegis
Communications Group, Inc., a Delaware corporation (the “Parent”), Advanced
Telemarketing Corporation, a Nevada corporation (“ATC”), IQI, Inc., a New York
corporation (“IQI”) (together, ATC and IQI are referred to as the “Company”),
and John Scot Brunke
(“Employee”).

 

R E C I T A L S:

 

The Company and the Parent desire to employ
Employee under the terms and conditions of this Agreement.  Employee represents that Employee is free
from any other obligation of continuing employment with his former employer.

 

Employee desires employment by the Company and
the Parent under the terms and conditions of this Agreement and further desires
to be granted access to the Company’s and the Parent’s proprietary information.

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements set forth in this Agreement, the parties agree as
follows:

 

1.                                      Employment.  Subject to the terms and
conditions set forth in this Agreement, each of the Company and the Parent
employ Employee, and Employee accepts such employment by the Company and the
Parent.

 

2.                                      Duties of Employee.

 

(a)                                  Employee will serve in the capacity of Chief Financial Officer of each of
the Company and the Parent, subject in each case to the reasonable supervision
of the President and Chief Executive Officer of the Company and the Parent, or
in the absence of a President or Chief Executive Officer, the reasonable supervision
of the Board of Directors.  In addition,
Employee will have such responsibilities and duties as required by the
President and Chief Executive Officer of the Company and the Parent, or in the
absence of a President or Chief Executive Officer, as required by the Board of
Directors.  In such capacity, Employee
will have all necessary powers to discharge the responsibilities customarily
performed by the Chief Financial Officer and to discharge the responsibilities
and duties as required by the President, Chief Executive Officer, or the Board
of Directors, subject in each case to the President’s and Chief Executive
Officer’s supervision and control, or in the absence of a President or Chief
Executive Officer, the supervision and control of the Board of Directors.  Employee will report to the President and
Chief Executive Officer of the Company and the Parent, or in the absence of a
President or Chief Executive Officer, to the Board of Directors.

 

(b)                                 Commencing March      , 2004 (the “Effective
Date”) and during the remaining term of this Agreement, Employee will devote
his full business time and effort to the performance of his duties and
responsibilities as Chief Financial Officer of

 

 

the Company and the Parent.  Employee acknowledges that the Company’s and
the Parent’s headquarters are currently located in the Dallas, Texas
metropolitan area, and hereby commits that he will perform his duties and
responsibilities by officing in and physically working from these headquarters
on a full-time equivalent basis, except to the extent that ordinary and
necessary business travel obligations require otherwise or to address family
emergencies or until the Board of Directors authorizes Employee to work out of
another location.

 

(c)                                  Employee will comply with the written rules and regulations of the
Company and the Parent respecting their businesses and perform the directives
and policies of the Company and the Parent as they may from time to time be
stated to Employee verbally or in writing by the President and Chief Executive
Officer and Board of Directors of each corporation.

 

(d)                                 Employee will comply with Company and Parent policy regarding the
maintenance of accurate business records as may from time to time be required
by the Company or the Parent.  Such
records may be examined by the Company or the Parent, as the case may be, at
all reasonable times after written request is delivered to Employee.  Any such document will be delivered to the
Company or the Parent, as the case may be, promptly upon request.

 

(e)                                  Employee agrees not to solicit or receive any income or other
compensation from any third party in connection with his employment with the
Company and the Parent.  The Employee
agrees, upon written request by the Company or the Parent, to render an
accounting of all transactions relating to his business endeavors during the
term of his employment hereunder.

 

3.                                      Term.  The term of this Agreement (the
“Term”) will commence on the Effective Date and continue until the first
anniversary of the Effective Date; provided, however, that at the end of such
initial term, and on each subsequent anniversary of the Effective Date, the
term will automatically extend for an additional year unless a party provides,
at least 60 days prior to the end of such initial term or such subsequent
anniversary, written notice that it does not wish to extend the term in which
case there will be no severance compensation or other monetary obligation,
other than pursuant to Section 9 of this Agreement.  Notwithstanding the foregoing, this Agreement
may be earlier terminated in accordance with Section 8 of this Agreement.

 

4.                                      Salary.  Commencing on the Effective
Date, the Parent will pay Employee an annual base salary during the term of
this Agreement for his services as Chief Financial Officer of the Company and
the Parent of $250,000, which will be payable in installments in accordance
with the Parent’s standard payroll practice, not less than monthly.  Such base salary will not include any
benefits made available to Employee or any contributions or payments made on
his behalf pursuant to any employee benefit plan or program of the Parent,
including any health, disability or life insurance plan or program, 401K plan,
cash bonus plan, stock incentive plan, retirement plan or similar plan or program
of any nature.  Employee’s performance
and base salary will be

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

2

 

reviewed by the
President and Chief Executive Officer and the Board of Directors, or
compensation committee thereof, annually (at the regularly scheduled board
meeting occurring nearest in time to each anniversary of the Effective Date)
and, in the discretion of the Board of Directors or the compensation committee
thereof, may be increased, but not decreased without Employee’s consent, by
such amount as the Board of Directors or such committee will determine.  The Company will have no separate salary
obligation to Employee, but will be jointly and severally liable with Parent
for the prompt payment of the benefit obligations set forth herein.

 

5.                                       Bonus Compensation.

 

(a) The Parent may pay Employee
annual performance based cash bonuses of up to $150,000 as, when, and in the
amount determined in the sole discretion of the Board of Directors.  The Employee’s annual performance bonus may
be prorated for any partial year of employment.

 

(b) The Company will have no separate
obligations to Employee with respect to bonus compensation, but will be jointly
and severally liable with the Parent for the payment of any bonus payments
contemplated by subparagraphs (a) above.

 

6.                                      Employee Benefits.  During
the term of this Agreement, the Parent will provide Employee with all benefits
made available from time to time by the Parent to its employees generally and
to Executives who hold positions similar to that of Employee (including the
benefits granted to other officers of the Parent), such benefits to be in
accordance with the Parent’s policies. 
Employee’s benefits will include participation in medical and dental
benefit plans or programs and up to two weeks’ sick leave annually (if needed)
and two weeks’ paid vacation.  During the
term of this Agreement, the Employee will be eligible to participate in any
option or stock incentive plan implemented by the Parent at the discretion of
the Board of Directors or of any compensation committee thereof.  The Company will have no separate obligations
to Employee with respect to employee benefits, but will be jointly and severally
liable with the Parent for the prompt payment of the benefit obligations set
forth herein.

 

7.                                      Reimbursement of Expenses.  The
Parent will reimburse Employee, in accordance with Parent and Company policy,
for all expenses actually and reasonably incurred by him in the business
interests of the Parent or the Company. 
Reimbursement will be made to Employee upon appropriate documentation of
such expenditures in accordance with the Parent’s or the Company’s written
policies.

 

8.                                       Early Termination.  It is
the desire and expectation of each party that the employer-employee
relationship will continue as specified herein and be a pleasant and rewarding
experience for the parties hereto.  The
Company or the Parent will, however, be entitled to terminate Employee’s
employment at any time with or without Cause (as defined in this
Section 8).  Employee may terminate
Employee’s employment at any time.

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

3

 

If Employee dies, is unable to perform his duties
and responsibilities as a result of disability that continues for 120
consecutive days or more or that exists for 180 days in any 12 month period
(“Disability”), voluntarily resigns from the Company or the Parent or is
terminated for Cause, the Parent will pay Employee (or his estate, executor or
legal representative, as appropriate) any salary that has accrued to the date
employment ceases, and the Parent’s obligations to pay additional salary or
cash compensation or benefits will terminate as of such date.

 

“Cause,” for the purpose of this Agreement, will
mean the occurrence of any of the following events:

 

(a)                                  Performance by Employee of any willful misconduct relating to the
activities of the Company or the Parent, or commission by Employee of any illegal
or fraudulent acts or criminal conduct;

 

(b)                                 A conviction of or nolo contendere
plea by Employee for any criminal acts involving moral turpitude having or
reasonably likely to have a material adverse effect upon the Company or the
Parent, including, without limitation, upon their profitability, reputation or
goodwill;

 

(c)                                  Willful or grossly negligent failure by Employee to perform his duties in
a manner consistent with the Company’s or the Parent’s best interests;

 

(d)                                 Willful refusal by Employee to carry out reasonable instructions of the
Company’s or the Parent’s President and Chief Executive Officer or Boards of
Directors not inconsistent with the provisions of this Agreement;

 

(e)                                  Employee’s failure to honor his obligations referred to in Section 2(b);

 

(f)                                    Violation by Employee of any of Employee’s covenants and agreements
contained in Sections 9, 10 or 11 of this Agreement; or

 

(g)                                 Any other material breach of Employee’s obligations hereunder, which he
fails to cure within thirty (30) days after receiving written notice thereof.

 

“Termination without Cause” will mean termination
by Parent or the Company for a reason other than “Cause.”

 

9.                                       Non-Competition Agreement.  Upon
execution of this Agreement, the Company and the Parent become contractually obligated
(i) to provide Employee access to and the benefit of special training and
unique information, including, but not limited to, inbound and outbound
telemarketing and customer care services, whether conducted by telephone or the
internet, research, systems, development, marketing, management, business
development, customer satisfaction methods and techniques, business process
improvements and other developments in marketing methods and providing services
to customers, and (ii) to enable Employee to represent the Company and the
Parent and their

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

4

 

affiliates and develop contacts and relationships with
other persons and entities on behalf of such entities, including but, not
limited to, customers, potential customers and other employees of such
entities.  To protect such entities’
interest in this information and in these contacts and relationships, Employee
agrees and covenants that during the term of his employment by the Company and
the Parent, and for a period of 6 months after the termination of such
employment for any reason, without prior written approval of the Company and
the Parent, Employee will not, in connection with any business that is engaged
in, or is about to be engaged in as of the date of such termination, by the
Company or the Parent, which includes, but is not limited to, inbound and
outbound telemarketing and customer care services, whether conducted by
telephone or the internet, and the provision of market research services as
currently provided by the Company or the Parent, the consulting, design and
implementation of any of these services, including organization and investment
in related industries or professions (the “Business”), directly or indirectly,
either as an individual or as an employee, partner, officer, director,
shareholder, advisor, or consultant or in any other capacity whatsoever, of any
person (other than ownership of less than 5% of the issued and outstanding
voting securities of a publicly held corporations): (a) recruit, hire, assist
others in recruiting or hiring, discuss employment with, or refer to others for
employment any person who is, or within the 6 month period immediately
preceding the date of any such activity was, an employee of the Company or the
Parent or their affiliates; or (b) conduct or assist others in conducting any
business or activity that competes with the Business in the United States, its
territories or possessions.

 

It is understood and agreed that the scope of the
foregoing covenant is reasonable as to time, area and persons and is necessary
to protect the legitimate business interests of the Company, the Parent and
their affiliates.  It is further agreed
that such covenant will be regarded as divisible and will be operative as to
time, area and persons to the extent that it may be so operative, and if any
part of such covenant is declared invalid, unenforceable, or void as to time,
area or persons, the validity and enforceability of the remainder will not be
affected.

 

If Employee violates the restrictive covenants of
this Section 9 and the Company or the Parent brings legal action for
injunctive or other relief, neither the Company nor the Parent will be deprived
of the benefit of the full period of the restrictive covenant, as a result of
the time involved in obtaining the relief. 
Accordingly, Employee agrees that the restricted period following the
term of employment will have a duration of 6 months,
and the regularly scheduled expiration date of such covenant will be extended
by the same amount of time that Employee is determined to have violated such
covenant.

 

In the event of a termination of this Agreement
or of the Employee other than for Cause, the Company agrees to pay Employee a
total of $60,000, to be paid in 6 monthly installments of $10,000 subject to
any appropriate withholdings for tax reasons. 
Notwithstanding any other provision of this agreement, if Employee
terminates Employee’s employment, such installments will be paid by the Company
at the end of the respective 6 months beginning upon the termination of
Employee’s employment, but if the Company terminates Employee’s employment, the
first such installment will be paid

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

5

 

by the Company on the date of termination and each
subsequent installment will be paid on the monthly anniversary date
thereof.  In the event of Termination for
Cause of Employee, no payment will be necessary in order to enforce this
Section 9.

 

10.                                Confidentiality.  Employee acknowledges that Employee has
learned and will learn Confidential Information (as defined herein) relating to
the business conducted and to be conducted by the Company, the Parent or their
affiliates.  Employee agrees that
Employee will not, except in the normal and proper course of his duties
hereunder, disclose or use or authorize any third party to disclose or use any
such Confidential Information, without prior written approval of the Company or
the Parent.  As used in this Section 10,
“Confidential Information” will mean information disclosed to or known to
Employee as a direct or indirect consequence of or through his employment with
the Company or the Parent, about any customer’s, supplier’s or the Company’s or
the Parent’s business, methods, business plans, operations, products,
processes, and services, including, but not limited to, information relating to
research, development, inventions, recommendations, programs, systems, and systems
analyses, flow charts, finances, and financial statements, marketing plans and
strategies, merchandising, pricing strategies, merchandise sources, client
sources, system designs, procedure manuals, automated data programs, financing
methods, financial projections, terms and conditions of arrangements of any
business, computer software, terms and conditions of business arrangements with
clients or suppliers, reports, personnel procedures, supply and services
resources, names and addresses of clients, the Company’s or the Parent’s
contacts, names of professional advisors, and all other information pertaining
to clients and suppliers, including, but not limited to assets, business
interests, personal data and all other information pertaining to the Company or
the Parent, clients or suppliers whatsoever, including all accompanying
documentation therefore.  All information
disclosed to Employee, or to which Employee has access during the period of his
employment, which is treated by the Employer as Confidential Information, will
be presumed to be Confidential Information hereunder. Confidential Information
will not, however, include information that (i) is publicly known or becomes
publicly known through no fault of Employee, or (ii) is generally or readily obtainable
by the public, or (iii) constitutes general skills, knowledge and experience
acquired by Employee before and/or during his employment with the Company and
the Parent.  Employee may, after prior
notice to the Company, disclose confidential information to the extent required
by applicable law or regulation or by any subpoena or similar legal process and
in connection with any suit, action, or proceeding relating to this Agreement
or the Employee’s enforcement of his rights hereunder.

 

Employee agrees that all documents of any nature
pertaining to activities of the Company, the Parent or their affiliates, or
that include any Confidential Information, in his possession now or at any time
during the term of his employment, including without limitation, memoranda,
notebooks, notes, data sheets, records and computer programs, are and will be
the property of such entity and that all copies thereof will be surrendered to
the appropriate entity upon termination of his employment.

 

11.                                Inventions; Developments.  Employee agrees to notify the Company and the
Parent of any discovery, invention, innovation, or improvement which is related
to the

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

6

 

Business or to the
business of any customer or supplier (collectively, the “Developments”)
conceived or developed by Employee during the term of the Employee’s
employment.  Developments will include,
without limitation, developments in computer software, logical systems, algorithms,
and any or all other intellectual properties related to the Business.  All Developments, including but not limited
to all written documents pertaining thereto, will be the exclusive property of
the Company or the Parent, as the case may be, and will be considered
Confidential Information subject to the terms of this Agreement.  Employee agrees that when appropriate, and
upon written request of the Company or the Parent, as the case may be, the
Employee will acknowledge that Developments are “works for hire” and will file
for patents or copyrights with regard to any or all Developments and will sign
documentation necessary to evidence ownership of Developments in the Company or
the Parent, as the case may be.

 

12.                                Exit Interview.  To insure a clear understanding of this
Agreement, including, but not limited to, the protection of the Company’s and
the Parent’s business interests, Employee agrees, at no additional expense to
the Company and the Parent, at a mutually acceptable time and place to engage
in an exit interview with the Company and the Parent prior to Employee’s
departure from the Company and the Parent.

 

13.                                Miscellaneous.

 

(a)                                  Any notice, demand or request required or permitted to be given or made
under this Agreement will be in writing and will be deemed given or made when
delivered in person, when sent by United States registered or certified mail,
or postage prepaid, or when telecopied to a party at its address or telecopy
number specified below:

 

If to the Parent or the Company:

 

Aegis Communications Group, Inc.

7880 Bent Branch Drive

Suite 150

Irving, Texas 
75063

Attn:  President & Chief Executive Officer

Facsimile number: 
(972) 830-1804

 

With a copy to:

 

Hughes & Luce, L.L.P.

1717 Main Street

Suite 2800

Dallas, Texas 
75201

Attn: David Luther

Facsimile number: 
(214) 939-5849

 

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

7

 

If to Employee:

 

John Scot Brunke

6609 Indian Trail

Plano, TX 75024  

Facsimile number: 
(972) 868-0267

 

With a copy to:

 

—[None]—

 

 

 

Facsimile number: 
[None]

 

The parties to this Agreement may change their
addresses for notice in the manner provided above.

 

(b)                                 All section titles and captions in this Agreement are for convenience
only, will not be deemed part of this Agreement, and in no way will define,
limit, extend or describe the scope or intent of any provisions hereof.

 

(c)                                  Whenever the context may require, any pronoun used in this Agreement will
include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns, pronouns and verbs will include the plural and vice versa.

 

(d)                                 The parties will execute all documents, provide all information and take
or refrain from taking all actions as may be reasonably necessary or
appropriate to achieve the purposes of this Agreement.

 

(e)                                  This Agreement will be binding upon and inure to the benefit of the
parties hereto, their representatives and permitted successors and
assigns.  Except for the provisions of
Sections 9, 10 and 11 of this Agreement, which are intended to benefit the
Company’s and the Parent’s affiliates as third party beneficiaries, or as
otherwise expressly provided in this Agreement, nothing in this Agreement,
express or implied, is intended to confer upon any person other than the
parties to this Agreement, their respective representatives and permitted
successors and assigns, any rights, remedies or obligations under or by reason
of this Agreement.

 

 

(f)                                    This Agreement constitutes the entire agreement among the parties hereto
pertaining to the specific subject matter hereof and understandings pertaining
thereto.

 

 

(g)                                 None
of the provisions of this Agreement will be for the benefit of or enforceable
by any creditors of the parties, except as otherwise expressly provided herein.

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

8

 

(h)                                 No failure by any party to insist upon the strict performance of any
covenant, duty, agreement or condition of this Agreement or to exercise any right
or remedy consequent upon a breach thereof will constitute waiver of any such
breach or any other covenant, duty, agreement or condition.

 

(i)                                     This Agreement may be executed in counterparts, all of which together
will constitute one agreement binding on all the parties hereto,
notwithstanding that all such parties are not signatories to the original or
the same counterpart.

 

(j)                                     THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF
LAW.  All claims, disputes, and
controversies arising out of or relating to this Agreement or the performance,
breach, validity, interpretation, application or enforcement hereof, including
any claims for equitable relief or claims based on contract, tort, statute, or
any alleged breach, default, or misrepresentation in connection with any of the
provisions hereof, will be resolved by binding arbitration.  Provided, however, an aggrieved party may
petition a federal or state court of competent jurisdiction in Dallas County,
Texas for interim injunctive or other equitable relief to preserve the status
quo until arbitration can be completed in the event of an alleged breach
of Section 9, 10, or 11 of this Agreement. 
A party may initiate arbitration by sending written notice of its
intention to arbitrate to the other party and to the American Arbitration
Association (“AAA”) office located in Dallas, Texas (the “Arbitration
Notice”).  The Arbitration Notice will
contain a description of the dispute and the remedy sought.  The arbitration will be conducted at the
offices of the AAA in Dallas, Texas before an independent and impartial
arbitrator who is selected by mutual agreement, or, in the absence of such
agreement, before three independent and impartial arbitrators, of whom each
party will appoint one, with the third being chosen by the two appointed by the
parties.  In no event may the demand for
arbitration be made after the date when the institution of a legal or equitable
proceeding based on such claim, dispute, or other matter in question would be
barred by the applicable statute of limitations.  The arbitration and any discovery conducted
in connection therewith will be conducted in accordance with the Commercial
Rules of arbitration and procedures established by AAA in effect at the time of
the arbitration, including without limitation the expedited procedures set
forth therein (the “AAA Rules”).  The
decision of the arbitrator(s) will be final and binding on all parties and
their successors and permitted assignees. 
The judgment upon the award rendered by the arbitrator(s) may be entered
by any court having jurisdiction thereof. 
The arbitrator(s) will be selected no later than 30 days after the date
of the Arbitration Notice.  The arbitration
hearing will commence no later than 60 days after the arbitrator(s) is
selected.  The arbitrator(s) will render
a decision no later than 30 days after the close of the hearing, in accordance
with AAA Rules.  The arbitrator’s fees
and costs will conform to the then current AAA fee schedule and will be borne
equally by the parties.

 

(k)                                  If any provision of this Agreement is declared or found to be illegal,
unenforceable, or void, in whole or in part, then the parties will be relieved
of all obligations arising under such provision, but only to the extent that it
is illegal,

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

9

 

unenforceable or void,
it being the intent and agreement of the parties that this Agreement will be
deemed amended by modifying such provision to the extent necessary to make it
legal and enforceable while preserving its intent or, if that is not possible,
by substituting therefor another provision that is legal and enforceable and
achieves the same objectives.

 

(l)                                     No supplement, modification or amendment of this agreement or waiver of
any provision of this Agreement will be binding unless executed in writing by
all parties to this Agreement.  No waiver
of any of the provisions of this Agreement will be deemed or will constitute a
waiver of any other provision of this Agreement (regardless of whether
similar), nor will any such waiver constitute a continuing wavier unless
otherwise expressly provided.

 

(m)                               Employee acknowledges and agrees that the Company and the Parent would be
irreparably harmed by any violation of Employee’s obligations under Sections 9,
10, and 11 hereof and that, in addition to all other rights or remedies
available at law or in equity, the Company and the Parent will be entitled to
injunctive and other equitable relief to prevent or enjoin any such
violation.  The provisions of Sections 9,
10 and 11 hereof will survive any termination of this Agreement, in accordance
with their terms.

 

(n)                                 No party may assign this Agreement or any rights or benefits thereunder
without the written consent of the other parties to this Agreement.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
BLANK.]

 

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

10

 

EXECUTED as of the date first
above written.

 

 

	
   

  	
  AEGIS COMMUNICATIONS GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herman M. Schwarz

  	
   

  
	
   

  	
   

  	
  Herman M. Schwarz,

  
	
   

  	
   

  	
  President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADVANCED TELEMARKETING

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Herman M. Schwarz

  	
   

  
	
   

  	
   

  	
  Herman M. Schwarz,

  
	
   

  	
   

  	
  President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IQI, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Herman M. Schwarz

  	
   

  
	
   

  	
   

  	
  Herman M. Schwarz,

  
	
   

  	
   

  	
  President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ John Scot Brunke

  	
   

  
	
   

  	
   

  	
  John Scot Brunke

  
						

 

 

	
  /s/ J.S.B.

  	
   

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Employee

  	
   

  	
  Parent & Co.

  

 

11Exhibit 10.17

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

This
Separation Agreement and General Release (“Agreement”) is made and
entered into as of March 31, 2004 (the “Execution Date”), by and among
Aegis Communications Group, Inc., a Delaware Corporation (the “Parent”),
Advanced Telemarketing Corporation, a Nevada corporation (“ATC”), IQI,
Inc., a New York corporation (“IQI”) (together, Parent, ATC, and IQI are
referred to as the “Company”), and Angelo Macchia (“Macchia” or “Employee”).

 

RECITALS

 

Whereas,
Employee is presently employed by the Company and serves as Executive Vice
President-CIO and has entered into an Employment Agreement with the Company
dated as of February 17, 2003, a copy of which is attached hereto as Exhibit
A  (the “Employment Agreement”).

 

Whereas, the
Company and Employee mutually desire to terminate the employment relationship
effective April 1, 2004.

 

Whereas, the
parties desire to provide for an orderly transition and termination of the
employment relationship and to settle fully and finally, in the manner set
forth herein, any and all existing or potential claims and controversies
arising out of the relationship between Employee and the Company.

 

 

Now,
therefore, in consideration of the mutual acts, payments, and promises described
and agreed to be performed herein, Employee and the Company agree as follows:

 

1.                                       Resignation.  Employee hereby tenders his resignation from
his position as Executive Vice President-CIO of the Company and its
subsidiaries and affiliates effective April 1, 2004.

 

2.                                       Severance
from Employment.  It is understood
and agreed that with the full and complete agreement of Employee and the
Company, Employee’s employment by the Company will cease April 1, 2004.  Except as otherwise expressly provided for
herein, Employee will cease to accrue any rights under any pension or
compensation plan or the Company (including without limitation any stock option
plan, grant or agreement).

 

3.                                       Payment
of Wages and Earned Benefits.  On or
before the Resignation Date, the Parent agrees to pay Employee all salary and
to provide all employee benefits (including reimbursement for expenses) to
which Employee may be entitled pursuant to the Employment Agreement.  Employee will be paid at his annualized
salary level of $200,000 through thirty days after the Execution Date, payable
in installments in accordance with the Parent’s standard payroll practices, but
not less than bi-weekly, and Employee will be entitled to medical, dental, and
vision benefits (including coverage for Employee’s immediate family),
disability insurance, 401-K plans, life insurance, officer and director
liability insurance, and paid vacation on the same terms and conditions as
provided to Employee immediately prior to the Execution Date.  Employee will be paid for all vacation days
that he has accrued but not taken during his employment with the Company
through the Resignation Date, if any. 
Any reimbursable

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

1

 

expenses incurred during
Employee’s employment with the Company through the Resignation Date, if any,
will be paid to Employee upon submission and approval of those expenses in
accordance with the Parent’s customary practices, but not less than monthly.

 

4.                                       2003
Bonus. (a) The Company acknowledges that Employee has earned a 2003 bonus
in the amount of $150,000 pursuant to the terms of his Employment
Agreement.  In consideration of
Employee’s agreement to permit the Company to delay the payment of said bonus,
and to instead pay said bonus over a period of months, the Company will pay the
bonus to Employee on the following schedule:

 

(1)                                  $25,750
on or before April 30, 2004;

 

(2)                                  $25,750
on or before May 31, 2004;

 

(3)                                  $25,750
on or before June 30, 2004;

 

(4)                                  $25,750
on or before July 30, 2004;

 

(5)                                  $25,750
on or before August 30, 2004; and

 

(6)                                $25,750
on or before September 30, 2004.

 

(b)                                 Notwithstanding
anything to the contrary in the preceding Section 4(a), the Company may choose
prior to September 30, 2004 to accelerate the payment of the six payments set
out in the preceding Section 4(a).

 

(c)                                  Notwithstanding
anything to the contrary in the preceding Section 4(a), if any of the following
events occur prior to September 30 2004, then the six payments set out in the
preceding Section 4(a) shall automatically be accelerated and due immediately,
less $15,000 for each month prior to September 30, 2004 in which the
accelerated payment is paid: (1) if the Company fails to make timely payments
of the amounts set out in the preceding Section 4(a); (2) any other executive
or former employee of the Company receives payment of his or her 2003 bonus on
a more accelerated basis than set out for Employee in the preceding Section
4(a); (3) the Company pays its new President and/or Chief Executive Officer a
signing bonus or any other bonus or incentive compensation prior to September
30, 2004; (4) more than $2.5 million in cash is raised in the DB/Essar warrant
conversion or through any other source of additional funding outside other than
revenues from the ordinary course of business; (5) any payment is made by the
Company on the DB/Essar notes after the Execution date; (6) there has been a
change in control of the Company (defined as the acquisition in one or more
transactions by any person, other than DB/Essar, of beneficial ownership of a
majority of the combined voting power of the Company’s then outstanding voting
securities, or the acquisition in one or more transactions by Essar of
some or all of Deutsche Bank AG-London’s beneficial ownership of the Company’s
voting securities); or (7) net availability (per the “Aegis Loan Status
Report,” to be provided to Employee weekly on the same day provided to the
Company) under the Foothill borrowing base exceeds $2.5 million.

 

(d)                                 If
the Company is late or fails to make a payment on a timely basis, a one-time
$50,000 penalty will be added to the bonus, provided the Company is given three
(3) business days written notice and an opportunity to cure.

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

2

 

5.                                       Severance
Payments.  In consideration of this
Agreement, the Parent agrees to pay Employee twelve months salary as severance
compensation in the amount of $200,000.00, subject to any withholding required
by law, to be paid in installments in accordance with the Parent’s customary
practices, but not less than monthly, and Employee will be entitled to medical,
dental, life insurance, and short-term and long-term disability benefits
(including coverage for Employee’s immediate family), during that twelve month
period, on the same basis as provided by the Company prior to the Resignation
Date, if any, or as subsequently provided by the Company to other executive
officers at the same level as Employee immediately prior to the Resignation
Date, beginning upon the Company’s receipt of Employee’s executed complete
release attached hereto as Exhibit B subsequent to the Employee’s
resignation from all of the positions he holds with the Company and its
subsidiaries and affiliates, including without limitation his positions as
Executive Vice President-CIO.  However,
notwithstanding the foregoing, if Employee
accepts employment (for purposes of this Section 5 only, employment does not
include part time-which would be defined as less than 35 hours a week-nor any
consulting work) at any time during such twelve month period, the Company has
no further obligation to pay Employee any monies, severance, or to otherwise
provide Employee any benefits pursuant to this Section 5.  Employee has the legal obligation to inform
the Company if Employee accepts employment beginning on the Execution Date up
to the expiration of such twelve month period.

 

6.                                      Ratification
of Employment Agreement.  (a)
Employee acknowledges, confirms, and ratifies his Employment Agreement dated
February 17, 2003, which is attached hereto as Exhibit A.  Employee specifically confirms that, during
the course of his employment, he received special training, unique and
confidential information, and actual contacts and relationships with customers
and potential customers, as contemplated in paragraph 9 of the Employment
Agreement.  Accordingly, except as
modified by this Agreement, Employee and the Company ratify the obligations
stated in the Employment Agreement, including specifically paragraphs 9, 10,
11, 12, 13 and 14 (including arbitration).

 

(b) Notwithstanding anything to the contrary in the preceding Section
6(a), the Company agrees to enforce Section 9(a) of the Employment Agreement
against Employee for a period of one year after the later of the Resignation
Date or the Revised Resignation Date, if any (and Employee must only abide by
such Section 9(a) of the Employment Agreement during such period) only to the
extent of the Employee, on behalf of a competitor of the Company, soliciting
business from a prospective customer with whom Employee had material contact or
from an existing customer in connection with outsourced inbound and outbound
telemarketing and customer care services, whether conducted by telephone or the
internet, and the consulting, design, and implementation of any of these
services.

 

7.                                       Complete
Releases.  (a) In consideration of
the promises made in this Agreement, Employee RELEASES, ACQUITS, and FOREVER
DISCHARGES the Company and each of its past and present parents, subsidiaries,
affiliates, shareholders, directors, officers, attorneys, accountants, agents,
employees, and representatives, from ANY and ALL causes of action, claims, and
damages, including attorney’s fees, Employee may have against the Company which
could have arisen out of Employee’s employment or separation from employment
with the Company or his service as an officer or director of the Company or any
other matter related to

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

3

 

his association with the
Company, including the Employment Agreement and any compensation due
thereunder, whether known or unknown, existing as of the Execution Date.  Other than the monetary payments the Company
agrees to make to Employee pursuant to the terms of this Agreement, the
Employee agrees that the Company does not owe Employee any other monetary
payments, including compensation for employment by the Company such as salary,
bonus, or otherwise.  Employee hereby
irrevocably, unconditionally, and fully releases, acquits, and forever
discharges the Company, and its respective officers, directors, partners,
shareholders, employees, attorneys, and agents, past and present, from any and
all charges, complaints, claims, liabilities, obligations, costs, losses,
debts, and expenses (including attorney’s fees and costs actually incurred), of
any nature whatsoever (excluding any felonious acts) known or unknown,
suspected or unsuspected, including without limitation any rights arising out
of alleged violations of any contract, express or implied, written or verbal,
any covenant of good faith and fair dealing, express or implied, any tort, any
legal restrictions on the right of the Company to terminate, discipline, or otherwise
manage employees or any federal, state, or other governmental statute,
regulation, or ordinance. 
Notwithstanding the foregoing, nothing herein will constitute a release
of the Company from causes of action, claims or damages, including attorney’s
fees, which may arise from acts or omissions by the Company after the Execution
Date or in contravention of this Agreement.

 

(1) These releases and waivers include, but
are not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights
Act of 1991, The Age Discrimination in Employment Act, the Employee Retirement
Income Security Act of 1974, the Americans with Disabilities Act, the
Rehabilitation Act of 1973, the Equal Pay Act, the False Claims Act, the Civil
Rights Act of 1866, the Fair Labor Standards Act, the Occupational Safety and
Health Act, the Family and Medical Leave Act, the Texas Commission on Human
Rights Act, the Texas Payday Law, the Texas Workers’ Compensation Act, any
causes of action or claims arising under analogous state laws or local
ordinances or regulations, any common law principle or public policy, including
all suits in tort or contract, or under the Company’s personnel policies or any
contract of employment that may exist between Employee and the Company.

 

(2) Employee knowingly and voluntarily waives
any existing rights he may have pursuant to the Age Discrimination in
Employment Act of 1967 and the Older Workers Benefit Protection Act.  Further, Employee acknowledges the receipt
of good and valuable consideration set forth in this Agreement in exchange for
this waiver of potential claims in addition to anything of value to which
Employee is already entitled, including specifically mutual releases.  Employee does not waive any claims that
arise after the date of execution of this Agreement.  Employee is advised to consult with an attorney prior to
executing this Agreement.  Employee is
given at least 21 days after being presented with this Agreement in which to
consider it, and an additional 7 days after he signs in which to revoke it.

 

(b) In consideration of the promises made in
this Agreement, the Company RELEASES, ACQUITS, and FOREVER DISCHARGES Employee
from ANY and ALL causes of action, claims and damages, including attorney’s
fees, the Company may have against Employee which could have arisen out of
Employee’s employment or separation from employment with the Company or his
service as an officer or director of the Company or any other matter related to
his association with the Company, including the Employment Agreement and any
compensation

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

4

 

due thereunder, whether known
or unknown, existing as of the Execution Date. 
The Company hereby irrevocably, unconditionally, and fully releases,
acquits, and forever discharges Employee from any and all charges, complaints,
claims, liabilities, obligations, costs, losses, debts and expenses (including
attorney’s fees and costs actually incurred), of any nature whatsoever
(excluding any felonious acts) known or unknown, suspected or unsuspected,
including without limitation any rights arising out of alleged violations of
any contract, express or implied, written or verbal, any covenant of good faith
and fair dealing, express or implied, any tort, or any federal, state or other
governmental statute, regulation, or ordinance.  Notwithstanding the foregoing, nothing herein will constitute a
release of Employee from causes of action, claims, or damages, including
attorney’s fees, which may arise from acts or omissions of Employee after the
Execution Date or in contravention of this Agreement.

 

(c) Employee and the Company (as defined
above in this section), in consideration for the promises made in this
Agreement, will once again reaffirm, execute, and deliver mutual releases in
the form attached as Exhibit B upon full payment by the Company of the 2003
bonus pursuant to Section 4 of this Agreement and satisfaction of all other
obligations by the Company under Sections 3, 4, 5 (through the date on which
the mutual release is executed) and 9 of this Agreement.

 

(d) It is expressly agreed and understood by
Employee and the Company that this Agreement Section 7(a)-(e) constitutes a
general release.

 

(e) The Company will indemnify and hold
harmless the Employee in respect of acts or omissions as a director, officer,
employee, or consultant occurring up to and including the Execution Date to the
same extent and with the same limitations as if he was an officer of the
Company to the fullest extent permitted by the Texas Business Corporation Act,
as amended, and the Company’s articles of incorporation and bylaws in effect on
the date of this Agreement, and will indemnify and hold harmless the Employee
in respect of any claims, liabilities, obligations, or expenses in respect of
or relating to this Agreement and the transactions contemplated hereby.

 

8.                                      Nature of the
Agreement.  This Agreement and all
its provisions are contractual, not mere recitals, and will continue in
permanent force and effect, unless revoked as provided herein.  In the event that any portion of this
Agreement is found to be unenforceable for any reason whatsoever, the
unenforceable provision will be severed and the remainder of the Agreement will
continue in full force and effect.

 

9.                                      Ongoing
Cooperation.  Notwithstanding any
other provision of this Agreement, Employee agrees to provide his reasonable
cooperation and make himself reasonably available to the Company in connection
with any litigation, now pending or that may arise in the future, regarding
which Employee has relevant personal knowledge acquired during his employment
as Executive Vice President-CIO of the Company, including the AllServe, Beggi
and Stremke litigation and the Company’s defense thereof and response thereto.

 

10.                                 Miscellaneous.
(a) Any notice, demand, or request required
or permitted to be given or made under this Agreement will be in writing and
will be deemed given or made when

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

5

 

delivered
in person, when sent by United States registered or certified mail, or postage
prepaid, or when telecopied to a party at its address or telecopy number
specified below:

 

If to the Company:

 

Aegis Communications Group, Inc.

7880 Bent Branch Drive

Suite 150

Irving, Texas  75063

Attn:   President or Chief Executive Officer

Telecopy number:  (972) 830-1804

 

With a copy to:

 

Hughes & Luce, L.L.P.

1717 Main Street

Suite 2800

Dallas, Texas  75201

Attn: David G. Luther

Telecopy number:  (214) 939-5849

 

If to Employee:

 

Angelo Macchia

 

[Need Address]

 

With a copy to:

 

[Need Attorney]

 

[Need Address]

 

The parties to this Agreement may change their addresses for notice in
the manner provided above.

 

(b)                                         All section titles and captions in this Agreement
are for convenience only, will not be deemed part of this Agreement, and in no
way will define, limit, extend, or describe the scope or intent of any
provisions hereof.

 

(c)                                          Whenever the context may require, any pronoun
used in this Agreement will include the corresponding masculine or neuter
forms, and the singular form of nouns, pronouns, and verbs will include the
plural and vice versa.

 

(d)                                         The parties will execute all documents, provide
all information, and take or refrain from taking all actions as may be
reasonably necessary or appropriate to achieve the purposes of this Agreement.

 

(e)                                          This Agreement will be binding upon and inure to
the benefit of the parties hereto, their representatives and permitted
successors and assigns.  Except for the
provisions of Section 6 of this Agreement, which are intended to benefit the
Company’s affiliates as third party beneficiaries, or as otherwise expressly
provided in this Agreement, nothing in this Agreement,

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

6

 

express
or implied, is intended to confer upon any person other than the parties to
this Agreement, their respective representatives and permitted successors and
assigns, any rights, remedies or obligations under or by reason of this
Agreement.

 

(f)                                            This Agreement, and the Employment Agreement
which is ratified herein, constitute the entire agreement among the parties
hereto pertaining to the specific subject matter hereof.

 

(g)                                         None
of the provisions of this Agreement will be for the benefit of or enforceable
by any creditors of the parties, except as otherwise expressly provided herein.

 

(h)                                         No failure by any party to insist upon the strict
performance of any covenant, duty, agreement, or condition of this Agreement or
to exercise any right or remedy consequent upon a breach thereof will
constitute waiver of any such breach or any other covenant, duty, agreement, or
condition.

 

(i)                                             This Agreement may be executed in telecopy format
and/or in counterparts, all of which together will constitute one agreement
binding on all the parties hereto, notwithstanding that all such parties are
not signatories to the original or the same counterpart.

 

(j)                                             THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAW.

 

(k)                                          All claims, disputes, and controversies arising
out of or relating to this Agreement or the performance, breach, validity,
interpretation, application, or enforcement hereof, including any claims for
equitable relief or claims based on contract, tort, statute, or any alleged
breach, default, or misrepresentation in connection with any of the provisions
hereof, will be resolved by binding arbitration.  Provided, however, an aggrieved party may petition a federal or
state court of competent jurisdiction in Dallas County, Texas for interim
injunctive or other equitable relief to preserve the status  quo
until arbitration can be completed in the event of an alleged breach of Section
6 of this Agreement.  A party may
initiate arbitration by sending written notice of its intention to arbitrate to
the other party and to the American Arbitration Association (“AAA”)
office located in Dallas, Texas (the “Arbitration Notice”).  The Arbitration Notice will contain a
description of the dispute and the remedy sought.  The arbitration will be conducted at the offices of the AAA in
Dallas, Texas before an independent and impartial arbitrator who is selected by
mutual agreement, or, in the absence of such agreement, before three
independent and impartial arbitrators, of whom each party will appoint one,
with the third being chosen by the two appointed by the parties.  In no event may the demand for arbitration be
made after the date when the institution of a legal or equitable proceeding
based on such claim, dispute, or other matter in question would be barred by
the applicable statute of limitations. 
The arbitration and any discovery conducted in connection therewith will
be conducted in accordance with the Commercial Rules of arbitration and
procedures established by AAA in effect at the time of the arbitration (the “AAA
Rules”); provided, however, that the parties will have the right to
exchange at least one set of written discovery requests in accordance with the
Federal Rules of Civil Procedure, and each party will have the right to take at
least two depositions.  The decision of
the arbitrator(s) will be final and binding on all parties and their successors
and permitted

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

7

 

assignees.  The judgment upon the award rendered by the
arbitrator(s) may be entered by any court having jurisdiction thereof.  The arbitrator(s) will be selected no later
than 30 days after the date of the Arbitration Notice.  The arbitrator(s) will render a decision no
later than 30 days after the close of the hearing, in accordance with AAA
Rules, and the arbitrator’s decision will include an award of costs (including
attorneys’ fees to the prevailing party).

 

 

(l)                                             If any provision of this Agreement is declared or
found to be illegal, unenforceable, or void, in whole or in part, then the
parties will be relieved of all obligations arising under such provision, but
only to the extent that it is illegal, unenforceable, or void, it being the
intent and agreement of the parties that this Agreement will be deemed amended
by modifying such provision to the extent necessary to make it legal and
enforceable while preserving its intent or, if that is not possible, by
substituting therefore another provision that is legal and enforceable and
achieves the same objectives.

 

(m)                                       No supplement, modification, or amendment of this
agreement or waiver of any provision of this Agreement will be binding unless
executed in writing by all parties to this Agreement.  No waiver of any of the provisions of this Agreement will be
deemed or will constitute a waiver of any other provision of this Agreement
(regardless of whether similar), nor will any such waiver constitute a
continuing wavier unless otherwise expressly provided.

 

(n)                                         Employee acknowledges and agrees that the Company
and the Parent would be irreparably harmed by any violation of Employee’s
obligations under Section 6 hereof and that, in addition to all other rights or
remedies available at law or in equity, the Company and the Parent will be
entitled to injunctive and other equitable relief to prevent or enjoin any such
violation.  The provisions of Section 6
hereof will survive any termination of this Agreement, in accordance with their
terms.

 

(o)                                         No party may assign this Agreement or any rights
or benefits thereunder without the written consent of the other parties to this
Agreement.

 

[THE REMAINDER
OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

 

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

8

 

EXECUTED as of the date first above written.

 

 

	
   

  	
  AEGIS
  COMMUNICATIONS GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herman M. Schwarz

  	
   

  
	
   

  	
  Name:

  	
  Herman M. Schwarz

  	
   

  
	
   

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADVANCED
  TELEMARKETING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herman M. Schwarz

  	
   

  
	
   

  	
  Name:

  	
  Herman M. Schwarz

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IQI, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herman M. Schwarz

  	
   

  
	
   

  	
  Name:

  	
  Herman M. Schwarz

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Angelo Macchia

  	
   

  
	
   

  	
  Angelo Macchia

  
										

 

9

 

EXHIBIT
A

 

EMPLOYMENT
AGREEMENT

 

See attached.

 

 

EXHIBIT
B

 

RECONFIRMATION
AND ACKNOWLEDGEMENT OF MUTUAL RELEASES

 

This Reconfirmation and Acknowledgement of Mutual Releases (“Agreement”)
is made and entered into as of March 31, 2004 (the “Execution Date”), by
and among Aegis Communications Group, Inc., a Delaware Corporation (the “Parent”),
Advanced Telemarketing Corporation, a Nevada corporation (“ATC”), IQI,
Inc., a New York corporation (“IQI”) (together, Parent, ATC, and IQI are
referred to as the “Company”), and Angelo Macchia (“Macchia” or “Employee”).

 

RECITALS

 

Whereas,
Employee was formerly employed by the Company and had entered into an
Employment Agreement with the Company dated as of February 17, 2003,  (the “Employment Agreement”).

 

Whereas,
Employee has tendered his resignation, and the Company has accepted such
resignation, for all positions in which Employee was employed by the Company
including as Executive Vice President-CIO, pursuant to a Separation Agreement
and General Release with the Company dated as of March 31, 2004 (the “Separation
Agreement”);

 

Whereas,
Employee agreed to execute this Agreement after Employee’s resignation from all
positions in which Employee was employed by the Company pursuant to the
Separation Agreement in exchange for the Company’s agreement to execute this
Agreement, and subsequently at the end of the one year period commencing on the
Resignation Date in exchange for the Company’s agreement to execute this
Agreement; and

 

Whereas, the
parties desire to provide for an orderly transition and termination of the
employment relationship and to settle fully and finally, in the manner set
forth herein, any and all existing or potential claims and controversies
arising out of the relationship between Employee and the Company.

 

Now, therefore, in consideration of the mutual acts and promises
described and agreed to be performed herein, Employee and the Company agree as
follows:

 

 

1.                                       Complete
Releases.

 

(a) In consideration of the promises made in this Agreement, Employee
RELEASES, ACQUITS, and FOREVER DISCHARGES the Company and each of its past and
present parents, subsidiaries, affiliates, shareholders, directors, officers,
attorneys, accountants, agents, employees, and representatives, from ANY and
ALL causes of action, claims, and damages, including attorney’s fees, Employee
may have against the Company which could have arisen out of Employee’s
employment or separation from employment with the Company or his service as an
officer or director of the Company or any other matter related to his
association with the Company, including the Employment Agreement and any
compensation due thereunder, whether known or unknown, existing as of the Execution
Date.  Other than the monetary

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

1

 

payments the Company agrees to
make to Employee pursuant to the terms of the Separation Agreement, the
Employee agrees that the Company does not owe Employee any other monetary
payments, including compensation for employment by the Company such as salary,
bonus, or otherwise.  Employee hereby
irrevocably, unconditionally, and fully releases, acquits, and forever
discharges the Company, and its respective officers, directors, partners,
shareholders, employees, attorneys, and agents, past and present, from any and
all charges, complaints, claims, liabilities, obligations, costs, losses,
debts, and expenses (including attorney’s fees and costs actually incurred), of
any nature whatsoever (excluding any felonious acts) known or unknown,
suspected or unsuspected, including without limitation any rights arising out
of alleged violations of any contract, express or implied, written or verbal,
any covenant of good faith and fair dealing, express or implied, any tort, any
legal restrictions on the right of the Company to terminate, discipline, or
otherwise manage employees or any federal, state, or other governmental
statute, regulation, or ordinance. 
Notwithstanding the foregoing, nothing herein will constitute a release
of the Company from causes of action, claims or damages, including attorney’s
fees, which may arise from acts or omissions by the Company after the Execution
Date or in contravention of the Separation Agreement.

 

(1) These releases and waivers include, but
are not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights
Act of 1991, The Age Discrimination in Employment Act, the Employee Retirement
Income Security Act of 1974, the Americans with Disabilities Act, the
Rehabilitation Act of 1973, the Equal Pay Act, the False Claims Act, the Civil
Rights Act of 1866, the Fair Labor Standards Act, the Occupational Safety and
Health Act, the Family and Medical Leave Act, the Texas Commission on Human
Rights Act, the Texas Payday Law, the Texas Workers’ Compensation Act, any
causes of action or claims arising under analogous state laws or local
ordinances or regulations, any common law principle or public policy, including
all suits in tort or contract, or under the Company’s personnel policies or any
contract of employment that may exist between Employee and the Company.

 

(2) Employee knowingly and voluntarily waives
any existing rights he may have pursuant to the Age Discrimination in
Employment Act of 1967 and the Older Workers Benefit Protection Act.  Further, Employee acknowledges the receipt
of good and valuable consideration set forth in this Agreement in exchange for this
waiver of potential claims in addition to anything of value to which Employee
is already entitled, including specifically mutual releases.  Employee does not waive any claims that
arise after the date of execution of this Agreement.  Employee is advised to consult with an attorney prior to executing
this Agreement.  Employee is given at
least 21 days after being presented with this Agreement in which to consider
it, and an additional 7 days after he signs in which to revoke it.

 

(b) In consideration of the promises made in
this Agreement, the Company RELEASES, ACQUITS, and FOREVER DISCHARGES Employee
from ANY and ALL causes of action, claims and damages, including attorney’s
fees, the Company may have against Employee which could have arisen out of
Employee’s employment or separation from employment with the Company or his
service as an officer or director of the Company or any other matter related to
his association with the Company, including the Employment Agreement and any
compensation due thereunder, whether known or unknown, existing as of the
Execution Date.  The Company hereby
irrevocably, unconditionally, and fully releases, acquits, and forever
discharges Employee

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

2

 

from any and all charges, complaints,
claims, liabilities, obligations, costs, losses, debts and expenses (including
attorney’s fees and costs actually incurred), of any nature whatsoever
(excluding any felonious acts) known or unknown, suspected or unsuspected,
including without limitation any rights arising out of alleged violations of
any contract, express or implied, written or verbal, any covenant of good faith
and fair dealing, express or implied, any tort, or any federal, state or other
governmental statute, regulation, or ordinance.  Notwithstanding the foregoing, nothing herein will constitute a
release of Employee from causes of action, claims, or damages, including
attorney’s fees, which may arise from acts or omissions of Employee after the
Execution Date or in contravention of the Separation Agreement.

 

(c) It is expressly agreed and understood by
Employee and the Company that this Agreement Section 1(a)-(d) constitutes a
general release.

 

(d) The Company will indemnify and hold
harmless the Employee in respect of acts or omissions as a director, officer,
employee, or consultant occurring up to and including the Execution Date to the
same extent and with the same limitations as if he was an officer of the
Company to the fullest extent permitted by the Texas Business Corporation Act,
as amended, and the Company’s articles of incorporation and bylaws in effect on
the date of this Agreement, and will indemnify and hold harmless the Employee
in respect of any claims, liabilities, obligations, or expenses in respect of
or relating to this Agreement and the transactions contemplated hereby.

 

2.                                       Miscellaneous.

 

(a)                                  All capitalized terms not otherwise defined
herein have the meanings assigned to them in the Separation Agreement.

 

(b)                                 All section titles and captions in this Agreement
are for convenience only, will not be deemed part of this Agreement, and in no
way will define, limit, extend, or describe the scope or intent of any
provisions hereof.

 

(c)                                  Whenever the context may require, any pronoun
used in this Agreement will include the corresponding masculine or neuter
forms, and the singular form of nouns, pronouns, and verbs will include the
plural and vice versa.

 

(d)                                 The parties will execute all documents, provide
all information, and take or refrain from taking all actions as may be
reasonably necessary or appropriate to achieve the purposes of this Agreement.

 

(e)                                  This Agreement will be binding upon and inure to
the benefit of the parties hereto, their representatives and permitted
successors and assigns.

 

(f)                                    None
of the provisions of this Agreement will be for the benefit of or enforceable
by any creditors of the parties, except as otherwise expressly provided herein.

 

(g)                                 No failure by any party to insist upon the strict
performance of any covenant, duty, agreement, or condition of this Agreement or
to exercise any right or remedy consequent upon a breach thereof will
constitute waiver of any such breach or any other covenant, duty,

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

3

 

agreement,
or condition.

 

(h)                                 This Agreement may be executed in telecopy format
and/or in counterparts, all of which together will constitute one agreement
binding on all the parties hereto, notwithstanding that all such parties are
not signatories to the original or the same counterpart.

 

(i)                                     THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAW.

 

(j)                                     All claims, disputes, and controversies arising
out of or relating to this Agreement or the performance, breach, validity,
interpretation, application, or enforcement hereof, including any claims for
equitable relief or claims based on contract, tort, statute, or any alleged
breach, default, or misrepresentation in connection with any of the provisions
hereof, will be resolved by binding arbitration.  Provided, however, an aggrieved party may petition a federal or
state court of competent jurisdiction in Dallas County, Texas for interim
injunctive or other equitable relief to preserve the status  quo
until arbitration can be completed in the event of an alleged breach of Section
1 of this Agreement.  A party may
initiate arbitration by sending written notice of its intention to arbitrate to
the other party and to the American Arbitration Association (“AAA”)
office located in Dallas, Texas (the “Arbitration Notice”).  The Arbitration Notice will contain a
description of the dispute and the remedy sought.  The arbitration will be conducted at the offices of the AAA in
Dallas, Texas before an independent and impartial arbitrator who is selected by
mutual agreement, or, in the absence of such agreement, before three
independent and impartial arbitrators, of whom each party will appoint one,
with the third being chosen by the two appointed by the parties.  In no event may the demand for arbitration
be made after the date when the institution of a legal or equitable proceeding
based on such claim, dispute, or other matter in question would be barred by
the applicable statute of limitations. 
The arbitration and any discovery conducted in connection therewith will
be conducted in accordance with the Commercial Rules of arbitration and
procedures established by AAA in effect at the time of the arbitration (the “AAA
Rules”); provided, however, that the parties will have the right to
exchange at least one set of written discovery requests in accordance with the
Federal Rules of Civil Procedure, and each party will have the right to take at
least two depositions.  The decision of
the arbitrator(s) will be final and binding on all parties and their successors
and permitted assignees.  The judgment
upon the award rendered by the arbitrator(s) may be entered by any court having
jurisdiction thereof.  The arbitrator(s)
will be selected no later than 30 days after the date of the Arbitration
Notice.  The arbitrator(s) will render a
decision no later than 30 days after the close of the hearing, in accordance
with AAA Rules, and the arbitrator’s decision will include an award of costs
(including attorney’s fees) to the prevailing party.

 

(k)                                  If any provision of this Agreement is declared or
found to be illegal, unenforceable, or void, in whole or in part, then the
parties will be relieved of all obligations arising under such provision, but
only to the extent that it is illegal, unenforceable or void, it being the
intent and agreement of the parties that this Agreement will be deemed amended
by modifying such provision to the extent necessary to make it legal and
enforceable while preserving its intent or, if that is not possible, by
substituting therefore another provision that is legal and enforceable and
achieves the same objectives.

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

4

 

(l)                                     No supplement, modification or amendment of this
agreement or waiver of any provision of this Agreement will be binding unless
executed in writing by all parties to this Agreement.  No waiver of any of the provisions of this Agreement will be
deemed or will constitute a waiver of any other provision of this Agreement
(regardless of whether similar), nor will any such waiver constitute a
continuing wavier unless otherwise expressly provided.

 

(m)                               No party may assign this Agreement or any rights
or benefits thereunder without the written consent of the other parties to this
Agreement.

 

[THE REMAINDER OF
THIS PAGE IS INTENTIONALLY LEFT BLANK.]

 

	
  /s/ A.M.

  	
   

  	
  /s/ H.M.S.

  	
   

  
	
  Macchia

  	
  Company

  

 

5

 

EXECUTED as of the date first above written.

 

 

	
   

  	
  AEGIS
  COMMUNICATIONS GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herman M. Schwarz

  	
   

  
	
   

  	
  Name:

  	
  Herman M. Schwarz

  	
   

  
	
   

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADVANCED
  TELEMARKETING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herman M. Schwarz

  	
   

  
	
   

  	
  Name:

  	
  Herman M. Schwarz

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IQI, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herman M. Schwarz

  	
   

  
	
   

  	
  Name:

  	
  Herman M. Schwarz

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Angelo Macchia

  	
   

  
	
   

  	
  Angelo Macchia

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}]]