Document:

Exhibit 10.43

 

SECOND AMENDED AND RESTATED

COOPERATIVE RESOURCES AGREEMENT

 

SECOND AMENDED AND RESTATED COOPERATIVE RESOURCES AGREEMENT dated as of
January 1, 2010, by and among (i) AFFINITY GROUP, INC., a
Delaware corporation (“AGI”), (ii) FREEDOMROADS HOLDING COMPANY, LLC, a
Minnesota limited liability company (“FreedomRoads”), and (iii) CAMPING
WORLD, INC., a Kentucky corporation, and CWI, INC., a Kentucky
corporation (“CW”).

 

WITNESSETH:

 

WHEREAS, AGI is the leading member-based direct marketing
organization targeting North American RV owners, campers and outdoor
enthusiasts; and

 

WHEREAS, since the acquisition of CW by AGI in 1997, AGI has
managed, maintained, controlled and monitored the CW Database and CW has sold
and distributed AGI’s products through CW’s retail locations and other
distribution channels, and CW and AGI have furthered their respective business
strategies and enhanced their respective competitive prospects by providing
opportunities to cross sell each other’s club memberships, providing access to
each other’s distribution channels, and providing opportunities to reduce
membership costs and solicitation costs and to consolidate administrative
support for certain products and services; and

 

WHEARES, FR is an affiliate of AGI and is the leading North
American dealer in RVs; and

 

WHEREAS, AGI, FR and CW have had an existing and ongoing
agreement with respect to the continuing cooperative sharing of resources as
described in that certain Cooperative Resources Agreement dated as of January 1,
2005, as amended, and AGI, FR and CW wish to supplement, modify and expand the
rights and obligations of the parties and are hereby amending and restating the
existing agreement between them in its entirety for that purpose.

 

NOW, THEREFORE, in consideration of the premises and of the
respective representations, warranties, covenants, agreement and conditions
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

 

I

DEFINED TERMS

 

The introduction and Recitals above are incorporated
herein by reference and are a material part of this Agreement.  Capitalized terms used herein shall have the
meanings given to them herein.  The
following terms shall have the following meanings:

 

 

1.1           An
“Affiliate” of any person or entity means any person, firm, corporation,
company, partnership, association, or other legal entity, directly or
indirectly, controlling, controlled by, or under common control with said person
or entity; provided, however, that for purposes of this Agreement, CW and AGI
shall be deemed to not be Affiliates of each other and FR and AGI shall be
deemed to not be Affiliates of each other.

 

1.2           “AGI”
means, collectively, Affinity Group, Inc., a Delaware corporation and its
subsidiaries.

 

1.3           “AGI
Benefits” is defined in Section 4.1 of this Agreement.

 

1.4           “AGI
Business” means (a) the business of club memberships, including,
specifically, the AGI Clubs, and related products and services, including
magazines, directories and other publications, and (b) the media business.

 

1.5           “AGI
Clubs” means the Good Sam Club, Camp Club USA, the Coast to Coast membership
clubs, and Golf Card, in each case operated by Affinity or its Affiliates.

 

1.6           “AGI
Club Member Report” is defined in Section 3.2(d) of this Agreement.

 

1.7           “AGI
Database” means the Database of AGI customers.

 

1.8           “AGI
Marketing Channels” means the marketing channels used by AGI in connection with
the AGI Business.

 

1.9           “CW”
means, collectively, Camping World, Inc., a Kentucky corporation, and its
subsidiaries and Affiliates.

 

1.10         “CW
Benefits” is defined in Section 3.1 of this Agreement.

 

1.11         “CW
Business” means the business of selling RV-related parts, accessories and other
consumer products, including the President’s Club as a buying club for CW
customers.

 

1.12         “CW
Customer Report” is defined in Section 4.2(d) of this Agreement.

 

1.13         “CW
Database” means the Database of CW customers.

 

1.14         “Camping
World Marks” means the logos, service marks, trade names, trademarks and other
intellectual property of Camping World used by Camping World in the operation
of its business.

 

1.15         “Change
of Control” means, with respect to any party, the occurrence of any of the
following events subsequent to the Effective Date:  (a) any person or entity other than (i) the
holders of the voting interests of such party on the Effective Date, or (ii) any
Affiliate of any such holders, or (iii) any other person who or which is a
spouse, widow, widower, lineal descendant, sibling or the issue of any of the
foregoing or a heir or legatee of any holder of the voting interests of such
party 

 

2

 

on the Effective Date (or any trust,
partnership or other estate planning vehicle established for the benefit of any
of the foregoing), directly or indirectly, owns more than fifty percent (50%)
of the aggregate voting power of all classes of voting interests of such party;
or (b) such party amalgamates or consolidates with, or merges with or
into, another entity or sells, assigns, conveys, transfers, leases or otherwise
disposes of all, or substantially all, of its assets to any other person or
entity, or such party amalgamates or consolidates with, or merges with or into,
such person or entity, in any such event pursuant to a transaction in which the
outstanding voting interests of all classes of such person is converted into or
exchanged for cash, securities or other property, other than any such
transaction in which (i) the outstanding voting interests of each class is
converted into or exchanged for voting interests of the surviving or transferee
company or corporation, and (ii) the holders of each class of the voting
interests of such party, immediately prior to such transaction own, directly or
indirectly, not less than a majority of each class of the voting interests of
the surviving or transferee company or corporation immediately after such
transaction.

 

1.16         “Database”
is defined in Section 8.1 of this Agreement.

 

1.17         “Effective
Date” means January 1, 2010.

 

1.18         “FR”
means FreedomRoads Holding, LLC.

 

1.19         “FR
Benefits” is defined in Section 5.1 of this Agreement.

 

1.20         “FR
Business” means RV sales, rental,
service and parts operations.

 

1.21         “FR
Database” means the Database of FR customers.

 

1.22         “FR
License” is defined in Section 5.3 of this Agreement.

 

1.23         “FR
LLC” means FreedomRoads, LLC and its operating subsidiaries.

 

1.24         “FR
License” is defined in Section 5.3 of this Agreement.

 

1.25         “License
Fee” is defined in Section 5.5 of this Agreement.

 

1.26         “Marks”
means, with respect to any entity or business, the logos, service marks, trade
names, trademarks and other intellectual property of that entity or business.

 

1.27         “Most
Favored Nations Rates” means the most favored rates made available to third
parties with respect to the product or service to which the rates are being
applied

 

1.28         “President’s
Club” means the discount buying club for CW Products as operated by CW on the
Effective Date.

 

1.29         “RV”
or “RVs” means recreational vehicles, boats, travel trailers, and motor homes
and such other products as may be hereinafter designated by mutual agreement
between AGI, FR and CW.

 

3

 

1.30         “Transfer”
is defined in Section 10.3 of this Agreement.

 

1.31         “Term”
is defined in Section 2.1 of this Agreement.

 

II

TERM

 

2.1           This term of this Agreement (the
“Term”) shall commence on the Effective Date hereof and shall continue for a
period of twenty-five years, subject to extension or earlier termination as set
forth herein.

 

2.2           The Term shall be automatically
extended for additional successive five year periods unless, at least 90 days,
but not earlier than 360 days, prior to the expiration of the then current
Term, either party shall have notified the other party in writing of its intent
not to extend the Term.

 

2.3           The rights of a party under this
Agreement may be terminated as follows:

 

(a)           A party may terminate the rights of
another party under this Agreement if there shall be entered a decree or order
for relief in respect of such other party or any subsidiary of such other party
under any applicable federal or state bankruptcy law or other similar law, or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator, or
similar official of such other party or any subsidiary of such other party or
of any substantial part of its properties, or ordering the winding-up or
liquidation of the affairs of such other party or any subsidiary of such other
party, or (ii) an involuntary petition shall be filed against such other
party or any subsidiary of such other party and a temporary stay entered and
(A) such petition and stay shall not be diligently contested, or (B) any
such petition and stay shall continue undismissed for a period of forty-five
(45) consecutive days;

 

(b)           A party may terminate the rights of
another party under this Agreement if such other party or any subsidiary of
such other party shall commence an insolvency proceeding or such other party or
any subsidiary of such other party shall consent to the institution of an
insolvency proceeding or to the appointment or taking of possession of a
receiver, liquidator, assignee, trustee, custodian, sequestrator, or other
similar official of such other party or any subsidiary of such other party or
of any substantial part of its properties, or such other party or any
subsidiary of such other party shall fail generally to pay its debts as they
become due, or such other party or any subsidiary of such other party shall
take any action in furtherance of any such action;

 

(c)           A party may terminate the rights of
another party under this Agreement if final judgment shall be entered by any
court against such other party or any subsidiary of such other party for the
payment of money which exceeds, together with all such other judgments of such
other party or any subsidiary of such other party, $2,500,000 in the aggregate.

 

(d)           A party may terminate the rights of
another party under this Agreement if there shall occur any default under any
agreement or other instrument to which such other party or any subsidiary of
such other party is a party which is likely to result in a claim against such 

 

4

 

other party or any subsidiary of such other
party in an aggregate amount exceeding $2,500,000.

 

(e)           A party may terminate the rights of
another party under this Agreement if there shall occur a Change of Control
with respect to such other party.

 

III

CW BENEFITS

 

3.1           AGI and FR each hereby grants to CW
the right and authority to access and utilize the rights and benefits described
in this Agreement (collectively the “CW Benefits”).  The parties intend this grant of a right by
AGI and FR to CW to be construed broadly, and not narrowly, to be substantially
consistent with the manner in which such benefits have been accessed and
utilized by CW during periods prior to the Effective Date.

 

3.2           In furtherance of the rights granted
to CW in subsection 3.1 above, AGI and FR hereby grant to CW the following rights,
respectively, with respect to the AGI Business and the FR Business (and, if
outside the scope of the AGI Business or FR Business, subject to prior written
grant by AGI or FR, as the case may be):

 

(a)           The right, respectively, to use the
AGI and FR Database sand such other information relating to AGI and FR
customers as CW may reasonably request, subject to compliance with applicable
governmental laws, agreements restricting such use and such controls as AGI or
FR, as the case may be, shall impose with respect to such access and use.

 

(b)           The right to receive reports, in such
form as reasonably requested by CW (each a “Member/Customer Report”) which
shall include (i) an updated member/customer list containing the most
current names, addresses and other data available to AGI or FR, as the case may
be with respect to its members/customers, (ii) a list of the most current
Database of information available to AGI and FR with respect to, in the case of
AGI, the Good Sam Club members and, in the case of FR, its customer contacts ,
(iii) a list of new members/customers since the last  Member/Customer Report, (iv) any changes
or corrections, of which AGI or FR is aware, to the last Member/Customer Report
delivered to CW or to any customer or member information previously delivered
to CW, and (v) such other information in the possession of AGI or FR
relating, in the case of AGI, to Good Sam Club members and, in the case of FR,
to FR customers, as CW may reasonably request.

 

3.3           The parties hereto acknowledge that
AGI and FR provide names and addresses of their respective members and
customers to other entities and agree that AGI and FR may continue to provide
names and addresses of customers to other entities with respect to their
respective businesses, products and services.

 

3.5           AGI and FR shall make, and cause
their respective subsidiaries to make, their respective books and records
available to the employees and agents of CW for purposes of verifying that the
obligations undertaken by AGI and FR under this Agreement have been met.  Any such examination shall occur during
normal business hours, and shall be conducted in a manner designed not to be
disruptive of the normal business activities of such first party.

 

5

 

3.6           CW shall conduct all activities with
respect to the benefits provided herein in accordance with applicable law and
in accordance with quality standards substantially similar to the quality
standards used by CW as part of the CW Business.

 

3.7           The rights granted to CW hereunder
may not be assigned by CW without the prior written consent of AGI and FR.

 

IV

AGI BENEFITS

 

4.1           CW and FR hereby grant to AGI the
right and authority to access and utilize the rights and benefits described in
this Agreement (collectively the “AGI Benefits”).  The parties intend this grant of a right by
CW and FR to AGI to be construed broadly, and not narrowly, to be substantially
consistent with the manner in which such benefits have been accessed and
utilized by AGI during periods prior to the Effective Date.

 

4.2           In furtherance of the right granted
to AGI in subsection 4.1 above, CW and FR hereby grant to AGI the following
rights with respect to the CW Business and FR Business (and, if outside the
scope of the CW Business or FR Business, subject to prior written grant by CW
or FR, as the case may be):

 

(a)           The right to use the CW and FR
Database and such other information relating to CW and FR customers as AGI may
reasonably request, subject to compliance with applicable governmental laws,
agreements existing on the Effective Date restricting such use and such
controls as CW and FR shall impose with respect to such access and use.

 

(b)           The right to receive reports, in such
form as reasonably requested by AGI (each a “Member/Customer Report”) which
shall include (i) an updated customer list containing the most current
names, addresses and other data available to CW and FR with respect to its
respective customers, (ii) a list of the most current Database of
information available to CW and FR with respect to the President’s Club members
in the case of CW and customers in the case of FR, (iii) a list of new CW
and FR customers and new President’s Club members since the last
Member/Customer Report, (iv) any changes or corrections, of which CW or FR
is aware, to the last Member/Customer Report delivered to AGI or to any
customer or President’s Club member information previously delivered to AGI,
and (v) such other information in the possession of CW or FR relating to,
in the case of CW to customers or President’s Club members and, in the case of
FR,  FR customers, as AGI may reasonably
request.

 

4.3           The parties hereto acknowledge that
CW and FR provide names and addresses of their respective members and customers
to other entities and agree that CW and FR may continue to provide names and
addresses of customers to other entities with respect to their respective
businesses, products and services.

 

4.4           CW and FR shall make, and cause their
respective subsidiaries to make, their respective books and records available
to the employees and agents of AGI for purposes of verifying that the
obligations undertaken by CW and FR under this Agreement have been met.  Any 

 

6

 

such examination shall occur during normal
business hours, and shall be conducted in a manner designed not to be
disruptive of the normal business activities of such first party.

 

4.6           AGI shall conduct all activities with
respect to the benefits provided herein in accordance with applicable law and
in accordance with quality standards substantially similar to the quality
standards used by AGI as part of the AGI Business.

 

4.7           The rights granted to AGI hereunder
may not be assigned by AGI without the prior written consent of CW and FR.

 

V

FR BENEFITS

 

5.1           AGI and CW hereby grant to FR the
right and authority to access and utilize the rights and benefits described in
this Agreement (collectively the “FR Benefits”).  The parties intend this grant of a right by
AGI and CW to FR to be construed broadly, and not narrowly, to be substantially
consistent with the manner in which such benefits have been accessed and
utilized by FR during periods prior to the Effective Date.

 

5.2           In furtherance of the right granted
to FR in subsection 5.1 above, AGI and CW hereby grant to FR the following
rights with respect to the AGI Business and CW Business (and, if outside the
scope of the AGI Business or CW Business, subject to prior written grant by AGI
or CW, as the case may be):

 

(a)           AGI and CW hereby grant to FR the
right to use the AGI and CW Databases and such other information relating to
AGI and CW customers as FR may reasonably request, subject to compliance with
applicable governmental laws, agreements existing on the Effective Date
restricting such use and such controls as AGI or CW shall impose with respect
to such access and use.

 

(b)           The right to receive reports, in such
form as reasonably requested by FR (each a “Member/Customer Report”) which
shall include (i) an updated customer list containing the most current
names, addresses and other data available to AGI and FR with respect to its
respective customers, (ii) a list of the most current Database of
information available to AGI and FR with respect to the President’s Club
members in the case of CW and the Good Sam Club in the case of AGI, (iii) a
list of new CW and AGI customers and new President’s Club and Good Sam Club
members since the last Member/Customer Report, (iv) any changes or
corrections, of which CW or AGI is aware, to the last Member/Customer Report
delivered to FR or to any Good Sam Club member or President’s Club member
information previously delivered to FR, and (v) such other information in
the possession of AGI or FR relating to, in the case of CW to customers or
President’s Club members and, in the case of AGI,  to customers or Good Sam Club members, as FR
may reasonably request

 

(c)           AGI and CW hereby grant to FR the
right to market and advertise the FR Business in all AGI Marketing Channels or
CW Marketing Channels on a Most Favored Nations Rate basis. FR shall pay the
costs to AGI or CW, as the case may be, of marketing and advertising in the AGI

 

7

 

Marketing Channels or CW Marketing Channels,
such costs to be paid in accordance with AGI’s payment policies for such
marketing and advertising.

 

5.3           AGI hereby grants to FR the non-transferable right (the “FR License”) to use
the CW Marks in connection with the FR Business.  FR undertakes to use the CW Marks only in
accordance with existing laws and the provisions of this Agreement.  FR recognizes CW’s exclusive ownership of the
CW Marks and undertakes not to derive or claim any ownership rights from its
use of the CW Marks.  The license granted
hereby shall inure solely to the benefit of FR and no rights or interest
therein shall be assigned by FR to any third party, including, without
limitation, FR LLC, and no third party, including, without limitation, FR LLC,
shall be deemed a third party beneficiary thereof.  The FR License shall terminate simultaneously
with any termination of AGI’s right to use the CW Marks.

 

5.4           The
CW Marks shall not be used by FR in any manner other than in connection with
the FR Business.  FR shall use
the CW Marks in a manner conforming to the quality standards for products and
services in place for CW’s products and services and in a manner that preserves
and protects the goodwill and quality of the CW Marks.  If AGI, in its sole discretion, determines that the use of the CW Marks does
not conform to those quality standards for any reason, AGI may terminate the FR License without notice
to FR.  AGI shall have the right from time to time to inspect and review the use
of the CW Marks for compliance with this paragraph.

 

5.5           Beginning with the calendar quarter
commencing on October 1, 2010, and continuing for each calendar quarter
thereafter until termination of the FR License, FR shall pay to AGI a fee equal
to $937,500 per quarter (the “License Fee”). 
The License Fee shall be paid quarterly on or before the last day of
each calendar quarter.

 

5.7           FR undertakes to bear the costs of
maintaining the CW Marks and of defending them against attacks by third
parties.  FR shall defend the CW Marks at
its cost against third party infringement or dilution.  AGI and CW shall reasonably assist FR in such
defense.  Each party shall immediately
inform the other of any acts of infringement by third parties of which it
becomes aware.  Should a third party
bring proceedings against FR as a result of use of one of the CW Marks, seeking
relief and/or compensation, FR shall immediately notify AGI.

 

5.8           Any
taxes to be paid in connection with FR’s use of the CW Marks shall be paid by
FR.

 

5.9           FR
undertakes to indemnify AGI and CW against claims by third parties which are
made against AGI or CW arising from FR’s use of the CW Marks or the operation
of FR’s business.

 

5.10         All
rights related to the CW Marks, whether existing on the date of this Agreement,
arising from the use of the CW Marks during the term of this Agreement, or
otherwise, are deemed to be acquired for the benefit of AGI and CW and, upon termination of this Agreement, FR shall
take all such action as is reasonably requested by AGI or CW to acknowledge and evidence such ownership.

 

8

 

5.11         Upon
expiration of the FR License, FR shall no longer use the CW Marks and shall not
use any designations or designs which are confusingly similar to the CW Marks.

 

5.12         FR shall make its books and records
available to AGI and CW and
their respective employees and agents for purposes of verifying that the
obligations of FR under this Agreement have been met.  Any such examination shall occur during
normal business hours, and shall be conducted in a manner designed not to be
disruptive of the normal business activities of FR.

 

5.13         FR shall conduct all activities with
respect to the benefits provided herein in accordance with applicable law and
in accordance with quality standards substantially similar to the quality
standards used by FR as part of the FR Business.

 

5.14         The rights granted to FR hereunder may not be assigned by
FR.

 

VI

LICENSE TO AGI

 

6.1           CW hereby grants to AGI the non-transferable right (the “License”) to use the
CW Marks.  AGI undertakes to use the CW
Marks only in accordance with existing laws and the provisions of this
Agreement.  AGI recognizes CW’s exclusive
ownership of the CW Marks and undertakes not to derive or claim any ownership
rights from its use of the CW Marks.  The
License shall terminate at such time as CW is no longer a subsidiary of AGI.

 

6.2           AGI
shall use the CW Marks in a manner conforming to the quality standards
for products and services in place for CW’s products and services and in a
manner that preserves and protects the goodwill and quality of the CW Marks.  If CW, in its sole discretion, determines
that the use of the CW Marks does not conform to those quality standards for
any reason, CW may terminate the License without notice to AGI.  CW shall have the right from time to time to
inspect and review the use of the CW Marks for compliance with this paragraph.

 

6.3           AGI  undertakes
to bear the costs of maintaining the CW Marks and of defending them against
attacks by third parties.  AGI shall
defend the CW Marks at its cost against third party infringement or
dilution.  CW shall reasonably assist AGI in such defence. 
Each party shall immediately inform the other of any acts of
infringement by third parties of which it becomes aware.  Should a third party bring proceedings against
AGI as a result of use of one of the CW Marks, seeking relief and/or
compensation, AGI shall immediately notify CW.

 

6.4           Any
taxes to be paid in connection with AGI’s use of the CW Marks shall be paid by
AGI.

 

6.5           AGI
undertakes to indemnify CW against claims by third parties which are made
against CW arising from AGI’s use of the CW Marks.

 

6.6           All
rights related to the CW Marks, whether existing on the date of this Agreement,
arising from the use of the CW Marks during the term of this Agreement, or
otherwise, are deemed 

 

9

 

to
be acquired for the benefit of CW and, upon termination of this Agreement, AGI shall
take all such action as is reasonably requested by CW to acknowledge and evidence such ownership.

 

6.7           Upon
expiration of the Term, AGI shall no longer use the CW Marks and shall not use
any designations or designs which are confusingly similar to the CW Marks.

 

6.8           AGI shall make its books and records
available to AGI and CW and their respective employees and agents for purposes
of verifying that the obligations of AGI under this Agreement have been
met.  Any such examination shall occur
during normal business hours, and shall be conducted in a manner designed not
to be disruptive of the normal business activities of AGI.

 

6.9           AGI shall conduct all activities with
respect to the benefits provided herein in accordance with applicable law and
in accordance with quality standards substantially similar to the quality
standards used by AGI as part of the AGI Business.

 

6.10         The rights granted to AGI hereunder may be assigned or sublicenses by AGI but any such assignment or sublicense shall be
subject to the terms of the License.

 

VII

CONSIDERATION AND REIMBURSEMENT OF EXPENSES

 

7.1           Except for the License Fee, and payments for advertising,
list maintenance and management costs and other costs and expenses as otherwise
specifically set forth herein, the consideration and compensation from each
party hereto owed to the other party hereto is the fulfillment by such first
party of its obligations hereunder to such second party.  All marketing and advertising shall be at
Most Favored Nations Rates and shall be paid in accordance with the payment
policies of the billing party.

 

VIII

DATABASE

 

8.1           Database.  During the Term, the customer databases,
mailing lists and other information relating to customers of AGI, CW, FR, and
their respective subsidiaries (collectively, the “Database”) shall be managed,
maintained and monitored by AGI.  No
party other than AGI, CW or FR shall have the right to access or use the
Database except as otherwise contemplated herein.  As part of the consideration of the right of
FR to use the AGI Database and the CW Database, FR agrees to pay the costs
associated with such management.  AGI
shall use its best efforts to obtain the best available pricing and shall
cooperate with FR in doing so.  Each
party hereto agrees not to use the Database of another party hereto for the
benefit of a business that competes with the business of such other party.  Except as otherwise set forth herein and in
the Database Agreement and the mutual covenants and agreements of the parties
herein, no party shall be required to pay for the use of the information
contained in the Database.

 

10

 

IX

CONFIDENTIALITY

 

9.1           Each
party hereto hereby agrees that it has received, and will be receiving, from
each other party hereto information that is confidential and highly
proprietary, which confidential and highly proprietary information may include
customer lists, customer reports and other information relating to the business
and operations of such other party and such party hereby agrees that it has
kept, and will continue to keep, such confidential information confidential and
it has not used, and it will not use, it in any way detrimental to the
providing person or its affiliates (it being understood that such confidential
information may be so disclosed to the extent necessary or required in order to
comply with applicable law, rule or regulation or for legal,
administrative or regulatory reasons or in order to enforce any rights
hereunder).  Confidential information
shall not include information which (i) was or becomes generally available
to the public other than as a result of disclosure by such first party or its
directors, officers, employees or agents, (ii) was or becomes available to
such first party on a nonconfidential basis prior to its disclosure to them by
the other party, or (iii) was or becomes available to such first party on
a nonconfidential basis from a source other than such other party’s directors,
officers, employees or agents, provided that such source is not bound by a
confidentiality agreement with respect to such information.

 

9.2           Each party hereto hereby agrees that
it will not, directly or indirectly, solicit for employment or hire or retain
any employee of the other party or of the other party’s affiliates; provided
that the foregoing provision will not prevent any solicitation of employment
not specifically directed toward the other party’s or such other party’s
affiliates employees, advisors or agents.

 

9.3           Each party hereto hereby agrees that
it will not, directly or indirectly, take any action or enter into any
agreement or relationship that is intended to circumvent the purposes of this
Agreement.

 

9.4           Each party hereto hereby agrees that
this Agreement is personal to AGI and its subsidiaries, CW and its
subsidiaries, and FR and its subsidiaries. 
Without the prior express written consent of AGI or FR, as applicable,
the CW Benefits and all other rights of CW under this Agreement may be utilized
only by CW and its subsidiaries in connection with the operation of the CW
Business, and not (a) by any other party, including Affiliates of CW, or
(b) in connection with any business other than the CW Business.  Without the express written consent of CW or
FR, as applicable, the AGI Benefits and all other rights of AGI under this
Agreement may be utilized only by AGI in connection with the operation of the
AGI Business, and not (i) by any other party, including Affiliates of AGI,
or (ii) in connection with any business other than the AGI Business.  Without the express written consent of AGI or
CW, as applicable, the FR Benefits and all other rights of FR under this
Agreement may be utilized only by FR and its subsidiaries on the terms set
forth in this Agreement, and not (1) by any other party, including
Affiliates of FR, or (2) in connection with any business other than the FR
Business.

 

11

 

X

REPRESENTATIONS AND WARRANTIES

 

10.1         Each party hereto represents and
warrants to the other parties hereto as follows:

 

(a)           the execution and delivery of this
Agreement has been duly authorized and adopted by resolution or ratification by
all necessary parties;

 

(b)           its obligations under this Agreement
are legal, valid and binding obligations enforceable against it in accordance
with its terms; and

 

(c)           it is not a party to, or is bound by,
any contractual agreement or instrument which would prevent or impede or
restrict its performance under this Agreement.

 

XI

MISCELLANEOUS

 

11.1         No party hereto shall hold itself out
as being the agent, representative, employee or the principal of any other
party hereto.  This Agreement does not
constitute any party hereto the agent of the other, nor does it create a
partnership, a consortium, an association, a joint venture, or any form of
juristic person or entity.  No party
hereto shall have any authority or right to assume or create obligations of any
kind or nature, express or implied, on behalf of, or in the name of any other
party, nor to accept service of any legal process of any kind addressed to or
intended for any other party, nor to bind any other party in any respect,
without the specific prior written authorization of such other party.

 

11.2         Each party hereto agrees to indemnify
and hold harmless the other parties hereto and the subsidiaries of such other
parties and its and their respective employees, officers, directors,
shareholders, agents and affiliates, from and against any and all claims,
demands, losses, damages, liabilities, law suits, and other proceedings,
judgment and awards, and costs and expenses (including, but not limited to,
reasonable attorneys’ fees) arising directly or indirectly in whole or in part
out of the performance by the other party or its subsidiaries (or any of its or
their respective employees, officers, directors, shareholders, agents and
affiliates) of their respective obligations under this Agreement.

 

11.3         No party hereto shall sell, assign or
transfer (including a sale, assignment or transfer by merger, consolidation or
in any other manner but excluding a pledge. transfer or collateral assignment
to a lender) (collectively “Transfer”), any of its rights or obligations
contemplated by in this Agreement without first obtaining the written consent
of the other parties hereto.  No person
or entity shall be a third party beneficiary hereof or shall be entitled to
exercise any right hereunder.  This
Agreement shall inure to the benefit of and be binding upon the parties
(including, without limitation, each subsidiary of AGI, FR and CW,
respectively), their successors, trustees, permitted assigns, receivers and
legal representatives but shall not inure to the benefit of any other person or
entity, except as specifically contemplated by this Section 11.3.  No party hereto shall Transfer (or permit any
of its respective subsidiaries to Transfer) all or substantially all of its
assets or any 

 

12

 

business unit unless the transferee or
acquiring entity confirms in writing that it continues to be subject to all of
the terms of this Agreement.

 

11.4         This Agreement contains the entire and
only agreement between the parties with respect to the subject matter hereof,
and no oral statements or representations or prior written matter not contained
herein or therein shall have any force or effect.  This Agreement shall not be modified in any
way except by a writing subscribed by the parties by their duly authorized
representatives.  No amendment of this
Agreement or its exhibits or schedules shall be of any force or effect unless
reduced to writing and executed in writing by the parties hereto the same
manner as the present Agreement.

 

11.5         All notices under this Agreement must
be in writing and shall be delivered by (i) certified or registered mail,
postage prepaid, return receipt requested, or (ii) reputable overnight
commercial courier or delivery service, or (iii) by facsimile transmission
confirmed by certified or registered mail or commercial courier or delivery
service as follows:

 

To
AGI:

 

Affinity
Group, Inc.

2575
Vista Del Mar Drive

Ventura,
CA  93001

Attention:  President

Telephone:  (805) 667-4100

 

To
CW:

 

CWI, Inc.

650
Three Springs Road

Bowling
Green, Kentucky  42104

Attention:  President

Telephone:  (270) 781-2718

 

To
FR:

 

FreedomRoads
Holding Company, LLC

250
Parkway Drive

Suite 320

Lincolnshire, IL
60069

Attention:  President

Telephone:  (847) 808-3000

 

All
notices, consents, waivers, and other communications under this Agreement shall
be deemed to have been duly given when (a) delivered
by hand (with written confirmation of receipt), or (b) when received by the addressee, if sent by a nationally
recognized overnight delivery service (receipt requested), in each case to the
appropriate addresses set forth above (or to such other addresses as a party
may designate by notice to the other party).

 

13

 

11.6         THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ALL RESPECTS ACCORDING TO THE INTERNAL LAWS OF THE
STATE OF DELAWARE, DETERMINED WITHOUT REFERENCE TO CONFLICT OF LAW PRINCIPLES.

 

11.7         The parties hereto recognize that a
breach of this Agreement would cause irreparable injury and that damages at law
would be difficult to ascertain.  The
parties hereto therefore consent to the granting of equitable relief by way of
a restraining order or temporary or permanent injunction by any court of
competent jurisdiction to prohibit the breach or enforce the performance of the
covenants contained in this Agreement.

 

11.8         In the event that any of the provisions
of this Agreement are held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision thereof and this Agreement shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein and
the parties hereto shall to the fullest extent possible modify any such
provision to the extent required to carry out the general intention of this
Agreement and to impart validity thereto.

 

11.9         No forbearance, indulgence, or
relaxation or inaction by any party at any time to require performance of any
provisions of this Agreement shall in any way affect, diminish or prejudice the
right of a party hereto to require performance of that provision and any waiver
or acquiescence by any party hereto in any breach of any provision of this
Agreement shall not be construed as a waiver or acquiescence in any continuing
or succeeding breach of such provision, a waiver or an amendment of the
provision itself or a waiver of any right under or arising out of this
Agreement or acquiescence in or recognition of rights and/or positions other
than as expressly stipulated in this Agreement.

 

11.10       This Agreement may be executed in any
number of counterparts each of which shall be deemed to be an original and all
of which shall constitute one and the same Agreement.

 

[The remainder of this page is intentionally blank.  Signature page follows.]

 

14

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed as of the date first written above.

 

 

	
   

  	
  CWI, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Brent Moody

  
	
   

  	
  Its:

  	
  Executive
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AFFINITY
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Schneider

  
	
   

  	
  Its:

  	
  President,
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  FREEDOMROADS
  HOLDING COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Marcus Lemonis

  
	
   

  	
  Its:

  	
  Chief
  Executive Officer

  

 

15EXHIBIT 10.1

 

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

 

 

This
Order No. 20070105.006.S.019 (“Order”) is issued pursuant to the Contact
Center Agreement No. 20070105.006.C dated January 26, 2007 (“Agreement”)
between AT&T Services, Inc. (“AT&T”) and StarTek, Inc. (“Supplier”)
and the Agreement is incorporated by reference herein.  Capitalized terms used in this Order not
otherwise defined herein shall have the definitions specified in the
Agreement.  If the Order conflicts with
the terms and conditions of the Agreement, the terms and conditions of the
Agreement shall control unless set forth in the “Special Considerations”
section of this Order in which case the Order shall govern and control.  Notwithstanding anything to the contrary,
this Order shall supersede and replace Order numbers GAMSA-STAR081106-00.S.001
and 20080122.003.C.

 

AT&T
hereby authorizes Supplier to perform the following Services:

 

1.              SCOPE OF
WORK

 

1.1                                 Supplier consumer customer
services representatives (“CSRs”) shall take and handle inbound customer care
inquiries by program (“Program”) as set forth in Exhibit C attached hereto
in accordance with the AT&T hours of
operation (“Hours of Operation”) set forth in Exhibit D attached hereto
subject to applicable laws at the rates
set forth in Exhibit B attached hereto, Specialty CSRs set forth in
Exhibit E attached hereto, and Contract Positions set forth in Exhibit F
attached hereto.  Any other
customer care activities,  changes that result in the nature or type, market or mix
of calls to change, including any changes to the mix of Program project(s) supported
by Site as set forth in Exhibit C attached hereto, shall be subject to Section 4.22
(Change Management) of the Agreement.

 

2.              PRIMARY
CONTACT INFORMATION

 

2.1                                 The following will perform
the function of primary AT&T Contact and primary Supplier Contact.  Supplier shall use reasonable efforts to
retain the Supplier Contact during the term of this Order.

 

	
  AT&T
  Contact

  	
   

  	
  Supplier
  Contact

  
	
  Name:
  [*]

  Address:
  [*]

  Phone:
  [*]

  E-mail:
  [*]

  	
   

  	
  Name:
  [*]

  Address:
  [*]

  Phone:
  [*]

  Cell:
  [*]

  E-mail: [*]

  

 

3.              TERM

 

3.1                                 The Term of this Order shall
commence on the date when signed by the last Party (“Effective Date”), and
shall continue until midnight on September 1, 2012 (the “Initial Term).
Supplier shall commence providing Services on September 1, 2010.

 

4.              SERVICE
SPECIFICATIONS AND REQUIREMENTS

 

4.1                                 Supplier shall deliver to
AT&T the deliverables set forth in Exhibit A “Deliverables Matrix”
(the “Deliverables”), attached hereto and incorporated herein.  Additional adhoc reports may be requested by
AT&T and shall be provided by Supplier as mutually agreed upon by the
Parties.

 

 

PRIVATE/PROPRIETARY/LOCK

 

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

 

 

Order No:  20070105.006.S.019

Agreement No:  20070105.006.C

 

5.              AT&T
SYSTEMS USE AND DOWNTIME

 

5.1                                 Should AT&T
systems become unavailable to Supplier, Supplier shall follow the notification
instructions contained in AT&T’s Downtime Policy as provided by
AT&T.  Supplier shall utilize
downtime forms to capture call information on the AT&T-provided downtime
forms and shall input into AT&T systems as soon as reasonably possible
after restoration of the impacted systems. 
AT&T shall pay the applicable Billable Hour rate for this
function.  Supplier shall be excused from
Performance Standards for the duration of the system outage. Supplier shall
provide immediate notification to AT&T’s National Call Center Operations (“NCCO”)
in the event of any outage. If AT&T Mobility directs Supplier CSR’s to “sign”
off of the phones, Supplier shall manually track the time and invoice back as a
separate line item.

 

5.2                                 If the telecommunications
systems are in failure due to AT&T, AT&T may require Supplier CSRs to
go into pure AUX state, whereby they are not receiving calls.  AT&T shall still be charged the actual
outage time incurred for the amount of time affected.  Supplier shall be excused from Performance
Standards for the duration of the outage. If AT&T directs Supplier CSR’s to
“sign” off of the phones, Supplier shall manually track the time and invoice
back as a separate line item.

 

5.3                                 The AT&T system will be
completely down during certain after-hour times and other scheduled times
throughout the year for maintenance. 
When practical, AT&T will advise Supplier of the scheduled
maintenance at least [*] prior to the times and dates that the systems will not
be available due to maintenance.

 

5.4                                 Notwithstanding the
foregoing, in the event of a Supplier system/telecommunications outage,
Supplier shall utilize CSRs’ [*] for offline work and training for the duration
of the outage.  AT&T shall [*] for
unutilized hours for the duration of a Supplier system outage, subject to the
Vendor Incident Report as described in Exhibit A and included as billing
back-up.

 

6.              PERFORMANCE
STANDARDS:

 

6.1                                 AT&T and Supplier have
developed the standards set forth in this Order, (hereinafter “Performance
Standards”) to ensure the delivery of high quality, efficient customer
service.  Effective  on the Effective Date, Performance Standard
measurements for Sites existing on the Effective Date, shall begin the month
following the Effective Date, or for the Performance Standards related to WAVE
First Call Resolution and Total Resolved, the next full calendar
quarter. Performance Standards for Sites opening after the Effective Date
shall be applicable to Services performed from a particular Site/Program [*]
after the first Production call is taken. Performance Standards hereunder shall
be measured by Program at each Site and shall exclude calls subject to waivers
as set forth herein this Order.  Any
invoice credits owed or debits earned by Supplier shall only apply to the
Services invoiced for the particular Site/Program subject to Section 1.2
herein for which it was measured and shall be assessed, respectively to CSE
Programs Billable Hours in Production only.

 

6.2                                 Call Volume Forecasting /
Staffing.  Each month on a by
Site/Program basis, AT&T shall provide Supplier [*] written forecasts to be
used by Supplier as a guide for recruitment, planning and staffing activities.  The [*] written forecasts are as follows:

 

1.  [*] Day Outlook Forecast with the required
number of Full Time Equivalents (“FTEs”) by Site/Program for recruitment
purposes.

 

2.  [*] Day Locked Forecast with the estimated
monthly number of calls by Site/Program for planning purposes as well as
forecasted modification training for the applicable month  (“[*] Day Lock”).

 

2

 

3.  [*] Day Forecast with daily/interval call
arrival patterns by Site/Program .

 

Supplier
shall provide FTE staffing pursuant to the mutually agreed upon [*] Day Lock
based upon the [*] Day Outlook Forecast, which will include an assumption of
the current training and nesting requirements set forth in Exhibit D.  Notwithstanding the foregoing, in the event
that AT&T requests training to extend beyond the current requirements set
forth in Exhibit D, the Parties shall address the change subject to Section 4.22
(Change Management) of the Agreement.

 

The
mutually agreed upon [*] Day Lock represents a commitment by AT&T and
Supplier with respect to staffing levels. 
Once the [*] Day Lock is agreed to, AT&T agrees to compensate
Supplier for the Billable Hours incurred for the applicable month, and it is
Supplier’s responsibility to staff to the [*] Day Lock as mutually agreed
upon.  In cases where Supplier has duplicate
Programs across Sites, AT&T and Supplier shall mutually agree upon volume
changes at a Site level as long as the [*] Day Lock remains unchanged.  In the event that actual volumes are less
than the [*] Day Lock, Supplier shall use reasonable efforts to ensure
productive utilization of  CSRs by
offering voluntary go home (“VGH”), internal training, etc.

 

Each
[*] Day Forecast will be prepared on a Site/Program basis in [*] intervals and
will include estimated call volumes, estimated average handle times, estimated
required FTE, shrinkage percentages and, when available, any other information
which would be relevant for Supplier in providing the Services.

 

Both
AT&T and Supplier will need to agree upon the volume forecasts and related
staffing when the [*] Day Lock represents +/- [*]% change from the previous [*]
Day Outlook Forecast, as it may require additional new hire training.  The Parties shall mutually agree upon
adjusted staffing for the modified forecast volumes pursuant to Section 4.22
(Change Management) of the Agreement.  
Notwithstanding the foregoing, in the event a Site requires a reduction
of more than [*] CSRs, Supplier shall have [*] days from receipt of written
notice, or the minimum number of days required to maintain compliance with the
laws applicable in the affected Site’s location, to comply with the AT&T
provided forecast.

 

a)                                      The Performance
Standards outlined here in this Order may be changed by AT&T upon [*] days
written notice to Supplier per the procedure outlined in Section 4.22
(Change Management) of the Agreement.

 

b)                                     Notwithstanding
the foregoing, Supplier shall be waived for Performance Standards in breach
and/or AT&T invoice credits under this Order or the Agreement to the extent
caused by AT&T or if actual call volume for such Program exceeds the [*]
Day Lock for such Site/Program by more than [*] or as otherwise set forth in
this Order or the Agreement.

 

c)                                      Failure to meet
the same Performance Standard at the same Site/Program for [*] consecutive
months shall be considered a breach of this Order and may be subject to Section 3.4
(Cancellation and Termination) of the Agreement unless otherwise waived in
accordance with the terms and conditions set forth herein.

 

d)                                     Supplier shall
provide at least [*] of the staffing pursuant to the [*] Day Lock and in any
case shall use reasonable efforts to achieve [*] of the staffing pursuant to
the [*] Day Lock, and AT&T shall provide at least [*] of the Billable Hours
pursuant to the [*] Day Lock.  If
Supplier fails to staff at least [*] of the [*] Day Lock and the shortage
materially impacts AT&T’s ability to provide services to its customers,
Supplier failure will be considered a breach of this Order and may be subject
to Section 3.4 (Cancellation and Termination) of the Agreement unless
otherwise waived in accordance with the terms and conditions set forth herein.

 

3

 

At
the request of AT&T, Supplier shall provide a corrective action plan for
such breach.

 

Post
shrink “in-seat” requirements and overtime: 
Post shrink “in-seat” requirements shall be provided by AT&T to
Supplier in the [*] Day Lock file (labeled: “[*] Day active FTE committed” in
the [*] Day Lock file).  The Parties
shall mutually agree upon these requirements. 
If Supplier actual in-seat FTEs are below agreed upon in-seat, based on
the [*]-day lock (hereinafter “FTE In-Seat Shortage”), Supplier shall use
reasonable efforts to solicit and fund overtime to meet the in-seat
requirements where shortages exists. 
AT&T may request and fund overtime for in-seat FTE hours that are in
excess of the [*] Day Lock commitments but this must be approved in advance by
AT&T.  Supplier will be excused from
funding overtime in excess of the [*] Day Lock commitment.

 

e)                                      Supplier shall
be excused from Performance Standards and/or AT&T invoice credits under
this Order in the event the Parties determine that the components and/or
assumptions used to determine the [*] Day Lock are inaccurate resulting in
Supplier failing to meet Performance Standards. 
The parties will mutually agree upon which component and/or assumption
is inaccurate, will correct and re-run current and future forecasts utilizing
the corrected components and/or assumptions. 
Variable assumptions and/or components include, but shall not be limited
to call volume, AHT assumption, occupancy, and modification/upgrade training
hours.

 

6.3                                 Customer Service Experience (“CSE”)
Standards:  The following Performance Standards shall be
measured on a Site basis and shall apply to the CSE Program only, and shall be
subject to material default and the applicable AT&T invoice credit,
Supplier earned debit to AT&T’s invoice credit, or Bonus set forth
herein.  Notwithstanding the foregoing,
AT&T may request that additional Programs be subject to the Performance
Standards subject to Section 4.22 (Change Management) of the
Agreement.   All results will be rounded
to the nearest whole number percentage. 
New sites will be subject to these Performance Standards [*] months
after the first call received in Production. Converted sites (Sites subject to
Conversion training as described in Exhibit B herein) will be measured [*]
months after the first call received in Production.

 

6.3.1                        First Call Resolution Rate (“FCR”): FCR WAVE will
be measured quarterly by Site and shall be ranked against Like Sites’ national
average, contingent up a sample size of at least [*] per Site.  Sample sizes of less than [*] shall be
excluded from the quarterly measurement. 
AT&T or AT&T vendor sites with samples sites of less than [*]
shall not be included in the stack ranking. 
FCR shall be waived in the event Supplier’ results  are within the top [*] of stacked ranking or
better, measured by region, regardless if Supplier results fall within the [*]
or [*] quartile when measured against the national average for overall Like
Sites.

 

Example:

 

Assumptions:

	
  Overall
  Like Sites national average results:

  	
   

  	
  [*]%

  
	
  Results
  for top [*] of Like Sites measured by region:

  	
   

  	
  [*]%-[*]%

  
	
  Supplier
  results:

  	
   

  	
  [*]%

  

 

Supplier
results within the top [*] of the results measured by region.  FCR Performance Standard and associated
AT&T invoice credit is waived.

 

4

 

AT&T
invoice credits and Supplier earned offset debits will be applied at the end of
the quarter, by Site/Program.  The
AT&T invoice credits and Supplier earned offset debits will be applied in
the following fashion based on FCR scores:

 

	
  below
  [*]% of Like Sites

  	
   

  	
  [*]%
  AT&T invoice credit

  
	
  [*]-[*]%
  of Like Sites

  	
   

  	
  [*]%
  AT&T invoice credit

  
	
  [*]-[*]%
  of Like Sites

  	
   

  	
  [*]%
  Supplier earned offset debit

  
	
  [*]%+
  of Like Sites

  	
   

  	
  [*]%
  Supplier earned offset debit

  

 

Note:
Earned offset debits are not bonus opportunities and can only be used to offset
credits within the same Site and quarter. 
Earned offset debits cannot exceed total credits for the Site.

 

A
[*] bonus may apply on a per Site basis if the FCR stretch target is achieved
in any quarter (“Bonus”) and the minimum TR goal is met ([*]% in 2010). The
stretch target for First Call Resolution is [*] or better for 2010.  The stretch target will be adjusted annually
based on current year goals.  The minimum
2010 FCR goal is [*].  The Bonus shall be
calculated as follows:  (1) the
quarterly invoice credit(s)/debit(s) shall be calculated (“Offset Result”),
then (2) the Bonus shall be applied to the Offset Result.

 

6.3.2                        Total Resolved (“TR”): will be
measured quarterly by Site and ranked against Like Sites’ national average,
contingent up a sample size of at least [*] per Site.  Sample sizes of less than [*] shall be
excluded from the quarterly measurement.  
TR shall be waived in the event Supplier’s results are within the top
[*] of stacked ranking or better, measured by region, regardless if Supplier
results fall within the [*] or [*] quartile when measured against the national
average for overall Like Sites.

 

Example:

 

Assumptions:

	
  Overall
  Like Sites national average results:

  	
   

  	
  [*]%

  
	
  Results
  for top [*] of Like Sites measured by region:

  	
   

  	
  [*]%-[*]%

  
	
  Supplier
  results:

  	
   

  	
  [*]%

  

 

Supplier
results within the top [*] of the results measured by region.  TR Performance Standard and associated
AT&T invoice credit is waived.

 

AT&T
invoice credits and Supplier earned offset debits will be applied at the end of
the quarter, by Site/Program. The AT&T invoice credits and Supplier earned
offset debits will be applied in the following fashion based on TR scores:

 

	
  below
  [*]% of Like Sites

  	
   

  	
  [*]%
  AT&T invoice credit

  
	
  [*]-[*]%
  of Like Sites

  	
   

  	
  [*]%
  AT&T invoice credit

  
	
  [*]-[*]%
  of Like Sites

  	
   

  	
  [*]%
  Supplier earned offset debit

  
	
  [*]%+
  of Like Sites

  	
   

  	
  [*]%
  Supplier earned offset debit

  

 

Note:
Earned offset debits are not bonus opportunities and can only be used to offset
credits within the same Site and quarter. 
Earned offset debits cannot exceed total credits for the Site.

 

A
[*] bonus may apply on a per Site basis if the TR stretch target is achieved in
any quarter (“Bonus”).  The stretch
target for TR is [*] or better in 2010. 
The stretch target will be adjusted annually based on current year
goals.  The minimum 2010 TR goal is
[*]%.  The 

 

5

 

Bonus
shall be calculated as follows:  (1) the
quarterly invoice credit(s)/debits(s) shall be calculated (“Offset Result”),
then (2) the Bonus shall be applied to the Offset Result.

 

6.3.3                        Occupancy Rate Target of
[*]-[*]%: The Occupancy Rate will be measured monthly,
excluding CSE Program After Hours Queue  (After Hours Queue is defined as those hours used to
support Customers when normal CSE queues have closed),  and shall be determined by subtracting total idle (waiting
to serve) time from total logged in time and dividing the difference by total
logged in time. If Supplier fails to meet the Occupancy performance standard
and the monthly call volume is less than [*]% of the [*]- Day lock then the
AT&T invoice credit will be waived. The AT&T invoice credits and
Supplier earned bonus will be applied in the following fashion based on
Occupancy Rate scores:

 

	
  below
  [*]%

  	
   

  	
  [*]%
  AT&T invoice credit

  

 

A
bonus may apply as follows on a per Site basis if the Occupancy stretch target
is achieved for any quarter (“Bonus”). The stretch target for Occupancy is [*]
or better in 2010. The stretch target will be adjusted annually on current year
goals.

 

	
  [*]%
  plus

  	
   

  	
  [*]%
  Supplier earned bonus

  
	
  above
  [*]%

  	
   

  	
  [*]%
  Supplier earned bonus

  

 

The Bonus shall be
calculated as follows: (1) the quarterly invoice credit(s) shall be
calculated (“Offset Result”), then (2) the Bonus shall be applied to the
Offset Result.  Notwithstanding the
foregoing, Supplier may earn a Bonus for Occupancy Performance if it meets or
exceeds the post shrink in-seat requirements (active [*] day committed)
mutually agreed upon in the [*] Day Lock.

 

6.3.4                        Availability % (“Availability”)
Target of [*]%: The measurement for Availability will be measured
monthly and shall be calculated as follows based on AT&T SRS standard:  subtract hold time from the sum of talk time
and wait time and divide the result by logged-in time.  In the event Supplier’s business process for
calculating Availability (i.e., use of telephony system for tracking offline or
development time) differs from the AT&T SRS standard, the Parties shall
agree in writing to an alternate calculation provided however that such
calculation meets the intent of measuring Availability. The AT&T invoice credits
will be applied in the following fashion based on Availability results (all
results should be rounded to the nearest percentage):

 

	
  For
  Sites with an Availability score lower than [*]%:

  	
   

  	
  [*]%
  AT&T invoice credit shall apply

  
	
  Sites
  with an Availability score of [*]% or greater:

  	
   

  	
  [*]%
  Supplier earned offset debit of

  

 

6.3.5                        Average Handle Time (“AHT”): The AHT
target shall be measured monthly by Site/Program shall be the current calendar
month AHT average of all Like Sites per region, plus [*] (“AHT Target”).  Change management procedures set forth in Section 4.22
(Change Management) of the Agreement will be invoked if AHT targets need to
change.  The AT&T invoice credits will be applied in the following
fashion:

 

	
  above
  AHT Target

  	
   

  	
  [*]%
  AT&T invoice credit

  

 

6

 

7.              CAP

 

The
resulting AT&T invoice credits and Supplier earned offset debits and
Bonuses for the applicable CSE and Prepaid Care Programs Performance Standards
set forth in Section 6 will only be applied to the applicable Site’s CSE
and Prepaid Care Program Billable Hours. 
The total AT&T invoice credit for all Performance Standards in
aggregate in any month cannot exceed a maximum of [*] per Site invoice.  The total Supplier earned offset debits
against AT&T invoice credits for all Performance Standards in aggregate in
any month cannot exceed a maximum of [*] per Site invoice.  Supplier earned offset debits can only be
used to offset AT&T invoice credits within the same Site during the same
month and are not a bonus opportunity. 
Notwithstanding the foregoing, Supplier may earn a [*] Bonus per quarter
upon attainment of both FCR and TR stretch targets as well as an additional [*]
Bonus per quarter for Occupancy (maximum [*]% Bonus in total).

 

8.              PERFORMANCE
STANDARDS WAIVERS

 

8.1                                 In addition to any other waivers
set forth herein this Order, Supplier shall be excused for failures to meet any
Performance Standard and shall not be in breach of this Order if such failure
is caused by: a) AT&T; and/or b) third parties (hired or contracted) to
provide system applications and/or system application services to or for
AT&T (including carriers) (a and b collectively referred to as “AT&T/Service
Provider”) including without limitation acts or omissions of AT&T/Service
Provider.

 

8.2                                 Notwithstanding anything to
the contrary herein, in addition to waivers set forth herein this Order,
AT&T may choose to waive Performance Standards and applicable penalties at
its sole discretion.  AT&T must
invoke this option in writing within [*] days of a missed Performance Standard.

 

9.              PRICE

 

9.1                                 Services shall be
compensated by AT&T to Supplier pursuant to the rates and charges detailed
in Exhibit B which is attached hereto and fully incorporated herein by
this reference.  Such rates and charges
do not include all applicable taxes.

 

10.       CANCELLATION
AND TERMINATION

 

a.               AT&T may
Terminate this Order for convenience with at least [*] days prior written
notice to Supplier. Supplier shall have the minimum number of days required to
maintain compliance with the laws applicable in the affected Site’s location,
from receipt of written notice.

 

b.              In addition to
all other rights or remedies provided for in this Order or by law, either Party
may immediately Cancel this Order if:  (1) the
other Party becomes insolvent or makes a general assignment for the benefit of
creditors; (2) the other Party admits in writing the inability to pay
debts as they mature; (3) Any court appoints a trustee or receiver with
respect to the other Party or any substantial part of the other Party’s assets;
or (4) An action is taken by or against other Party under any bankruptcy
or insolvency laws or laws relating to the relief of debtors, including the
Federal Bankruptcy Act.

 

11.       DISPUTE
RESOLUTION

 

Either Party may give the
other Party written notice of any dispute not resolved in the normal course of
business.  The Parties will attempt in
good faith to promptly resolve any issue, dispute, or controversy arising out
of or relating to this Order promptly by negotiation between the managers set
forth below.   Within ten (10) days
after delivery of such notice, representatives of both Parties will meet at a
mutually acceptable time and place, and thereafter as often as they reasonably
deem necessary, to exchange relevant information and to attempt to resolve the
dispute within the time frames here:

 

7

 

	
   

  	
   

  	
  AT&T

  	
   

  	
  Supplier

  
	
  Within [*] days

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Within [*] days

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Within [*] days

  	
   

  	
  [*]

  	
   

  	
  [*]

  

 

If any dispute is not
resolved in accordance with this process after [*] days, the Parties will
escalate to the respective executive levels. 
Both Parties agree to continue performance during the negotiation period
set forth in this section of the Order.

 

12.       SPECIAL
CONSIDERATIONS

 

12.1                           Definitions

 

12.1.1                  “Billable
Hour” is defined as the time between the time when a CSR clocks into and
clocks out of Supplier’ time keeping system for the purpose of performing
agreed upon work for AT&T.  The
Billable Hour includes time for Paid Breaks, as well as actual time spent by a
CSR for coaching and development, team meetings and huddles, and continuing
education training, subject to the provisions in Section 12.5 of this
Order.  The Billable Hour does not
include lunches, sick time, vacations, or Supplier-sponsored events such as non-AT&T
focus groups and non-AT&T development.

 

12.1.2                  “Full Time Equivalent” (“FTE”)
shall mean [*] hours of scheduled time per week.

 

12.1.3                  “Growth” means a
number of FTE by Site that are incremental to the Historical FTE Peak.

 

12.1.4                  “Historical FTE Peak”
means the largest count of FTE by Site starting from the time Supplier began
performing Services at such Site.

 

12.1.5                  “Like Sites”
means those locations, both insourced and outsourced, supporting the same
programs as set forth in Section 1.1.

 

12.1.6                  “Overtime” means  production
hours invoiced at a premium rate, as defined in Exhibit B, will be applied
whenever an agent works in addition to their normal scheduled hours during a
time additional staffing has been requested by AT&T. This is contingent on
Supplier meeting their daily FTE commitment based on the [*]-Day lock.

 

12.1.7                  “Paid Break” is not the actual time that
a CSR is recorded in such state on the switch but rather a calculated measure
based on Production time not sign on time. Paid Break will be calculated at [*]
per Production hour (including outbound and billable idle).

 

12.1.8                  “Production” is defined as the mode when
CSRs, after successfully completing the proscribed classroom new hire training,
are handling live calls from AT&T customers.

 

12.1.9                  “Shrink” means  the
difference between scheduled FTE and actual on-phone FTE, (i.e. absenteeism and
preplanned off-phone time) excluding outbound.

 

8

 

12.2                           Supplier Responsibilities

 

a.               Except as otherwise
set forth in this Order or the Agreement, Supplier shall be responsible for
providing all Supplier personnel, facilities, technology, services and
materials necessary to perform the Services in accordance with the terms and
conditions set forth in this Order.

 

b.              As of the
Effective Date of this Order, Supplier shall provide the necessary voice and
data infrastructure and PCs based on current requirements (or thin client
applications in lieu of PCs) at Supplier’s Site(s) from the point of
demarcation within Supplier’s data center(s) for voice and data
communications in accordance with Exhibit G (Technology Requirements) at
Supplier’s sole expense.  The point of
demarcation is the point where AT&T-owned circuits/equipment end and
Supplier-owned circuits/equipment begin. 
AT&T will provide any intelligent call management (ICM) routing and
screen-pop equipment as required; or, alternatively Supplier will provide ICM
and screen-pop equipment.  Supplier’s PCs
shall reside on the Supplier network and access AT&T’s systems via web,
Citrix, or other thin client connectivity.

 

12.3                           CSR to Supervisor Ratio

 

Supplier
shall adhere to a CSR to Supervisor ratio of 15:1.

 

12.4                           Background Checks and Drug
Screens

 

Supplier
shall conduct background checks (including drug screens) in accordance with the
terms and conditions of the Agreement for all new hire CSRs.

 

12.5                           Training

 

a.               Training costs
shall be billed as listed under Exhibit B.

 

b.              Initial new
hire training:  Supplier shall provide
training pursuant to Exhibit D attached hereto, to Supplier’s CSRs in
accordance with AT&T provided training materials, and all retraining,
ongoing soft-skills training, and customer service training at the rates set
forth in Exhibit B, in order to perform the Services described in this
Order.  If mutually agreed between the
Parties subject to Section 4.22 (Change Management) of the Agreement,
AT&T may provide AT&T trainers for initial train-the-trainer training
programs.

 

c.               AT&T may
request to extend the duration of initial Program training subject to Section 4.22
(Change Management) of the Agreement.

 

d.              Supplier shall
provide up to [*] hours of continuing education training (“CE Training”) per
CSR per month at no additional charge to AT&T.  The use of CE Training hours must be preapproved
by AT&T in writing.  CE Training
hours may be used for, but not limited to, 
technical training, program updates, changes to programs, software and
system updates and/or changes, scripting changes, or other topics related to
the WO and the Services provided hereunder.  
ADDITIONAL TRAINING FOR PERFORMANCE ISSUES SHALL BE FREE OF CHARGE TO
AT&T AND SHALL NOT COUNT TOWARD THE CE TRAINING HOURS. Supplier must staff
appropriately in order to complete the [*] hours/training/CSR/month.

 

e.               In the event CE
Training above [*] hours per month per CSR is required by AT&T, AT&T
shall be charged the CE Training rate in Exhibit B, unless otherwise
mutually agreed.

 

9

 

f.                 If this Order
is amended to add new or different AT&T Program(s) and such Programs
require CSR conversion training (“Conversion Training”) AT&T will be
charged the Conversion Training rate in Exhibit B, unless otherwise
mutually agreed.

 

g.              If Supplier
provides Services in support of multiple AT&T Programs pursuant to this
Order, Supplier may cross train CSRs between Programs.  Such training shall be delivered at no cost
to AT&T.  Supplier’s plan for cross
training, if any, shall be shared with AT&T.

 

h.              At Suppliers
expense, new trainers shall:

i.             Attend a [*]
PRT (Program Ready Trainer) call.

ii.          Complete [*] of classroom performance training.

iii.       Attend [*] certification course to prepare new
trainers for delivering AT&T curriculum to New Hires.

iv.      Co-facilitate one New Hire training class with a certified
trainer for a minimum of [*] weeks.

 

AT&T
may at its sole discretion choose to pay for Supplier’s travel related expenses
directly related to new trainers participation in subsection iii above,
provided however that Supplier secures AT&T prior written approval for such
expenses and such new trainer successfully completes the certification course.

 

12.6                           Quality Assessment

 

Supplier
shall provide enough Quality Assessment (“QA”) to CSRs to meet the average
number of observations monthly.  Each CSR
is monitored an average of [*] scored evaluations per month by QA and
Production staff/personnel collectively and other informal evaluations as
agreed upon by the parties based upon individual CSR performance.  Supervisors shall use reasonable efforts to
provide feedback for the assessments that they conduct by the end of
shift.  Using reasonable efforts, QA
assessments will be coached within shift with failing assessments specifically
flagged to the Supervisors and coached within [*] minutes of delivery to the
Supervisor.  Agents needing improvement
will receive additional evaluations via various methods (side by side,
additional monitoring, remote monitoring, double jacking, etc).  QA agents will shadow CSRs while on the call
without the CSR being aware they are being monitored.  Calibration sessions between Supplier QA
agents, Supplier supervisors and AT&T representatives will be held
bi-weekly to ensure scoring and feedback to CSRs is consistent.  If Supplier fails to meet performance
criteria described in this Section, Supplier will be advised of such
deficiencies and Supplier will have [*] days to bring performance back to
objective’s standards.  AT&T and
Supplier may mutually agree to modify the standards upon written agreement
signed by both Parties.

 

12.7                           Offshore Work Permitted
Under Special Conditions

 

a)              [*], the physical location
where the work is to be performed; the Services to be performed at such
location; and, if applicable, the identity of any Subcontractor performing such
work, shall be specifically set forth in this Order.  Prior to making any additions or deletions to
the physical locations or changes in Subcontractors performing work at an
Offshore Location the Parties shall amend this Order.  A change in the location where a Service is
performed from one Offshore Location to another AT&T approved Offshore
Location shall not require an amendment to this Order.  The requirements of this section shall be in
addition to Sections 3.3 (Assignment) and 4.18 (Work Done by Others) of the
Agreement.

 

10

 

b)             [*], in which event Supplier
shall continue to perform such work at a location within the United States and
the Parties shall amend this Order accordingly.

 

c)              Supplier’s compliance with
this Section, and all Services performed in Offshore Locations with [*], shall
be subject to Section 3.31 (Records and Audits) of the Agreement.  Supplier shall provide, and shall ensure all
Subcontractors provide at no cost to AT&T, AT&T with physical access to
inspect all Offshore Locations.

 

d)             To the extent Supplier
interconnects with, or otherwise has access to, the AT&T network, Supplier
shall not access, or establish network connections that would allow access, to
the AT&T network from an Offshore Location without the prior written
consent of AT&T.

 

e)              Any Services under this
Order performed by Supplier or any subcontractor in an Offshore Location [*]
shall be a material breach of this Order and, in addition to any other legal
rights or remedies available to AT&T in law or in equity, AT&T may
immediately Cancel and/or Terminate this Order without cost, liability or
penalty to AT&T.

 

f)                [*], Supplier
shall remain fully responsible for compliance with any applicable foreign,
federal, state or local law for such Services regardless of whether the Service
is being performed by Supplier or a Subcontractor.  Nothing contained within this Agreement is
intended to extend, nor does it extend, any rights or benefits to any
Subcontractor, and no third party beneficiary right is intended or granted to
any third party hereby.

 

g)             Supplier shall
advise AT&T as early as possible prior to any change of Control of the
Supplier. AT&T may, but shall not be obligated to, terminate all or part of
the Order if, without prior consent of AT&T, through merger of acquisition
or other means, there is a change in the Control of the Supplier.  “Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies by one person or entity or a group of persons or entities acting in
concert; provided, however, that the legal or beneficial ownership, directly or
indirectly, by persons or entities, including governmental entities, acting
alone or in concert, of more than thirty percent (30%) of the voting stock for
the election of directors of a party shall always be deemed Control.

 

12.8                           Location

 

Supplier
shall perform the Work at the following locations:

 

[*]

 

[*]

 

[*]

 

[*]

 

[*]

 

 

11

 

13.       NAME OF
AFFILIATE ORDERING SERVICES

 

AT&T
Mobility LLC

 

14.       MBE/WBE/DVBE

 

Supplier
shall make good faith efforts to comply with Section 3.22 (MBE/WBE/DVBE
[and Appendices]) of the Agreement which calls for [*] goal for MBE/WBE and
DVBE participation.  In addition,
Supplier will, in good faith, endeavor to spend the following percentages of
its total AT&T spend under this Order through one or more diverse
(M/W/DVBE) suppliers:

 

	
  Year

  	
   

  	
  Supplier Target

  
	
  2010

  	
   

  	
  [*]%

  
	
  2011

  	
   

  	
  [*]%

  
	
  2012

  	
   

  	
  [*]%

  

 

In
the event this Order is extended beyond the original Term and such extension
includes all or a portion of 2013 or beyond, Supplier will, in good faith,
endeavor to spend the following percentage of its total AT&T spend under
this Order through one or more diverse (M/W/DVBE) suppliers:

 

	
  Year

  	
   

  	
  Supplier Target

  
	
  2013 &
  beyond

  	
   

  	
  [*]%

  

 

12

 

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

 

IN WITNESS WHEREOF, the Parties have caused
this Order to be executed by their duly authorized representatives:

 

	
  StarTek, Inc.

  	
   

  	
  AT&T Mobility LLC  

   

  by its authorized agent
  AT&T Services, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   /s/ A. Laurence
  Jones

  	
   

  	
   

  	
  By: 

  	
   /s/ Tim Harden

  	
   

  
	
   

  	
   

  	
   

  
	
  Printed Name: A.
  Laurence Jones

  	
   

  	
  Printed Name: Tim
  Harden

  
	
   

  	
   

  	
   

  
	
  Title:
  President & CEO

  	
   

  	
  Title: President-Supply
  Chain & Fleet Operations

  
	
   

  	
   

  	
   

  
	
  Date: 10/27/2010

  	
   

  	
  Date: 10/20/2010

  
											

 

13

 

Exhibit A

 

Deliverables/Specifications/Requirements

 

Deliverable Set # 1 — Reporting

 

Note: The list of reports below are required only if
requested by AT&T and may not be needed on a recurring basis.  AT&T and Supplier will work together to
determine what reports may be needed including additional reports that may not
be listed below.

 

ACD Report: Comprehensive report with
data taken directly from the switch. 
Details total calls offered, calls handled, calls abandoned, average
speed of answer, average handle time by live CSR and downtime.  Delivered to AT&T daily.

 

Agent (PAR) Report:  CSR or Personal Accountability Reports
provide queue performance statistics broken down by CSR.  Data elements include the number of ACD calls
answered, the average time spent on each ACD call, the average time spent
waiting between ACD calls, the time spend doing post-call work, the time spent
logged into the system, short calls, transfer rates, availability etc.  Delivered to AT&T daily.

 

Vendor Incident Report: Report provides a listing
of the date, time, duration and description of any system outages to Supplier
systems, root cause analysis, and preventive measures.  Delivered to AT&T when system outages
occur.

 

Call Comparison:  Compares forecasted to actual call volume and
answer performance.

 

Combined FTE:  Report provides headcount and training data,
as well as weekly attrition.  Delivered
to AT&T weekly.

 

Attrition Training:  Report provides ongoing attrition training
data, with class details (class size, dates, etc.).  Delivered to AT&T weekly.

 

Interval:  report provides one-half hour (1/2) interval
call volume data.  Delivered to AT&T
daily.

 

Invoice Detail:  Invoices will include detailed documentation
including but not limited to, for each CSR; a list of CSR names, hours logged
via the ACD, hours logged, and indicator for training or Production status.

 

Weekly
Quality Report: Weekly roll up of quality performance to
include: scores from evaluations completed by Supplier quality team,
scores from evaluations completed by Supplier leadership team (team
leads/supervisors), QA/Team Lead score variance, combined score, total
evaluations completed by QA team, total evaluations completed by Team
Leads.

 

Monthly
Quality Report Monthly roll up of quality performance to
include: scores from evaluations completed by Supplier quality team,
scores from evaluations completed by Supplier leadership team (team
leads/supervisors), QA/Team Lead score variance, combined score, total
evaluations completed by QA team, total evaluations completed by Team
Leads.

 

14

 

Deliverable Set # 2 — Quarterly Program Reviews

·                 If requested by
AT&T, Supplier shall conduct quarterly Program reviews in person at
AT&T headquarters to cover Program highlights, overall account activity,
budget analysis, review key reports and metrics at a management level, the
incentive programs that were run and their results, and to ensure that stated
agreed upon Program objectives are being met. 
If Program objectives are not being met, Supplier shall establish an
action plan to be implemented within [*] days to achieve measurable results
within [*] days.

 

15

 

Exhibit B

Price

 

For
Services performed under this Order, Supplier shall be compensated in
accordance with this Exhibit B and one of the applicable pricing tables
shown in the Appendices of Exhibit B attached hereto.

 

a.               Except as
otherwise stated in an Order, the total amount payable by AT&T for the
Services shall be determined by applying the stated rate of compensation to the
Services actually performed by Supplier. The Premium and Overtime Rate shall
apply if Supplier is able to and AT&T agrees to offer premium and overtime
hours (to the extent such hours are in excess of 40 hours per week per
CSR). The premium rate for Overtime shall apply if the Supplier is able to
and AT&T agrees to offer overtime hours contingent to Section 6.2 d.
of this Order. Holiday Rates shall apply based on applicable Holidays at the
Site as follows:

 

United
States Holidays: New Years Day, Thanksgiving Day, Labor Day,
Christmas Day, Memorial Day, and Independence Day.

 

Philippines
Holidays:  New Year’s
Day, Maundy Thursday,Arawng Kagitngan, Good Friday, Labor Day, Independence
Day, Ninoy Aquino Day, National Hero’s Day, Eid’l Fitr, Eid’ I Adha, All Saints
Day, Bonifacio Day, Christmas Day, Rizal Day,and New Year’s Eve (Last Day of
the Year)  Note: Philippine Holidays are
proclaimed yearly and the list above may change slightly year to year. Taking
into consideration the time zone, the holiday will follow the PHT Time Zone
(GMT +8 Hours).

 

Canadian
Holidays:  New Years
Day, Family Day, Good Friday, Victoria Day, Canada Day, Labor Day, Thanksgiving
Day, Christmas Day, and Boxing Day.

 

b.              Domestic
Inbound/Outbound telecom.  AT&T shall be client of record on the (800)
service.  Subject to AT&T’s prior written approval of usage, domestic
inbound and outbound telecom charges shall be [*].

 

c.               Postage,
shredding, express mail, printing, and courier services, trunking and circuits,
reproduction (other than reattrition training which is borne by Supplier), and
travel (Pre-approved by AT&T) will all be charged at [*].

 

d.              New Hire/Growth
training rate shall be applicable to Growth training only.  Supplier shall secure prior written approval
from AT&T before incurring Growth training costs.

 

Classroom training hours not to exceed the maximum
classroom training hours for FTE delivered into Production and sustained for [*] consecutive weeks.  From the
inception of each new-hire/growth period, the maximum classroom training hours
shall be calculated as follows: N(number of training days per week * number of
training hours per day * number of training weeks), where N = the total number
of FTEs per Site.  Example: 100*(5 * 8 *
5) = 20,000.  Supplier shall invoice
monthly based on accrued hours per month until the maximum classroom training
hours is surpassed.  Supplier shall [*] associated with any additional training after the maximum new-hire/growth
classroom training hours is surpassed.

 

e.               The
Nesting Rate will apply for the first [*] of Abay only. The remaining time a CSR is in abay will be invoiced back at
the applicable hour rate.

 

f.                 The Conversion
rate will apply for training required when CSRs are transferred from one
AT&T Program to another AT&T Program where “Conversion” training is
required.

 

g.              Billable CE
training hours shall be calculated in aggregate at Site level and not at the
employee level.  For example, if first
[*] are free to AT&T per the pricing schedules in this exhibit and 300
active FTE are in the center 

 

16

 

for the month then there
shall be no billing of CE training to AT&T unless total such hours exceed [*] hours ([*] hrs x 300 FTE).

 

h.              Contract
Positions are billed at [*] by
Program/Site as Appendix 1 and 2 of Exhibit B.  Contract Positions are not to exceed [*] hours per week without prior approval of the AT&T Contract identified
in Section 2.1 of this Order). Ratios and position descriptions are
outlined in Exhibit F.

 

i.                  Specialty CSR’s are billed at [*] by Program/Site as Appendix 1 and 2 of Exhibit B.  Specialty CSR’s are not to exceed [*] hours per week without prior approval of the AT&T Contract identified
in 2.1 of this Order). Ratios and position descriptions are outlined in Exhibit E.

 

j.                  Clerical
Support Positions are billed at $[*] per hour for domestic sites and $[*] per hour for offshore sites (not to exceed [*] hours per week without prior approval of the AT&T contact identified
in 2.1 of this Work Order). Functions shall include, but not be limited to, the
following tasks:

·                  Login ordering,
tracking, retiring and maintenance

·                  SOX contact for
all AT&T Mobility audits

·                  Clarify
maintenance

·                  Submitting and
tracking Credits and Adjustments

·                  Sessions
Enrollments for training

·                  AT&T
Mobility University setups and retires

·                  Course
enrollments and completions

·                  Tracking and
follow through of all Office of the President requests

·                  Back up to LRP
for all AT&T Mobility reporting

·                  Distribute
and ensure follow up on feedback items (Clarify, Wave, PCS, Tier II, SOA,
Direct Fulfillment, etc.), compile results

·                  Gather
and summarize results of initiatives (PAR/SRS, migrations, etc.)

 

k.               Sales
Analyst Positions are billed at $[*] per hour for domestic sites and $[*] per hour for offshore sites (not to exceed [*] hours per week without prior approval of the AT&T contact identified
in Section 2.1 of this  Order).  The Sales Analyst handles all tracking,
trending, analyzing and summarizing of sales reporting. Duties include AT&T
requested reporting and analysis, team presentations, explaining results,
maintaining reporting back-up documents, collaboration on action plans and
sales recognition programs.

 

17

 

Exhibit B, Appendix 1

Price

[*]

 

	
  PROGRAM NAME

  	
   

  	
  CONSUMER CUSTOMER CARE

  
	
   

  	
   

  	
   

  
	
  LOCATIONS

  	
   

  	
  [*]

  

 

	
  BILLABLE HOUR RATE for CSR’s

  (Including Contract Positions and Specialty CSR’s)

  	
   

  	
  Tenure

  	
   

  	
  Regular
  Hours

  	
   

  	
  After
  Hours and Sunday Support

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
  BILLABLE HOUR RATE for TSD/Tech Support

  (Including Contract Positions and Specialty CSR’s)

  	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  DRUG SCREEN &

  BACKGROUND CHECK

  	
   

  	
  Passed
  through at cost (Checks required as a result of attrition will be the
  responsibility of Supplier.)

  
	
   

  	
   

  	
   

  
	
  OVERTIME RATE

  	
   

  	
  [*]%
  premium above the applicable Billable Hour rate. Applies to CSRs, Specialty
  CSR’s and Contract Positions

  
	
   

  	
   

  	
   

  
	
  HOLIDAY RATE

  	
   

  	
  [*]%
  premium above the applicable Billable Hour rate. Applies to CSRs, Specialty
  CSR’s and Contract Positions

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  New
  Hire/Growth $[*]

  
	
   

  	
   

  	
  Nesting:
  $[*]

  
	
  TRAINING RATE

  	
   

  	
  Continuing
  Education Training: [*]

  
	
   

  	
   

  	
  Conversion
  Training as defined in section 12.5.e, [*]

  
	
   

  	
   

  	
  All
  Attrition: [*]

  

 

 

18

 

Exhibit B, Appendix 2

Price

[*]

 

	
  PROGRAM NAME

  	
   

  	
  CONSUMER CUSTOMER CARE

  
	
   

  	
   

  	
   

  
	
  LOCATION

  	
   

  	
  [*]

  

 

	
  BILLABLE HOUR RATE for CSR’s

  (Including Contract Positions and Specialty CSR’s)

  	
   

  	
  Tenure

  	
   

  	
  Regular
  Hours

  	
   

  	
  After
  Hours

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
  BILLABLE HOUR RATE for TSD/Tech Support

  (Including Contract Positions and Specialty CSR’s)

  	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
  [*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  DRUG SCREEN &

  BACKGROUND CHECK

  	
   

  	
  Passed
  through at cost (Checks required as a result of attrition will be the
  responsibility of Supplier.)

  
	
   

  	
   

  	
   

  
	
  OVERTIME RATE

  	
   

  	
  [*]%
  premium above the applicable Billable Hour rate. Applies to CSRs, Specialty
  CSR’s and Contract Positions

  
	
   

  	
   

  	
   

  
	
  HOLIDAY RATE

  	
   

  	
  [*]%
  premium above the applicable Billable Hour rate. Applies to CSRs, Specialty
  CSR’s and Contract Positions

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  New
  Hire/Growth $[*]

  
	
   

  	
   

  	
  Nesting:
  $[*]

  
	
  TRAINING RATE

  	
   

  	
  Continuing
  Education Training: [*]

  
	
   

  	
   

  	
  Conversion
  Training as defined in section 12.5.e, [*]

  
	
   

  	
   

  	
  All
  Attrition: [*]

  

 

 

19

 

Exhibit B, Appendix 3

Price

[*]

 

	
  PROGRAM NAME

  	
   

  	
  CONSUMER CUSTOMER CARE

  
	
   

  	
   

  	
   

  
	
  LOCATION

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  
	
  BILLABLE HOUR RATE

  (March 1st, 2010
  —September 30th, 2010)

  Includes Contract Positions and Specialty CSR’s

  	
   

  	
  $[*]*

  
	
   

  	
   

  	
   

  
	
  BILLABLE HOUR RATE

  ( September 1st, 2010 — September 30th, 2012)

  Includes Contract Positions and Specialty CSR’s

  	
   

  	
  $[*]*

  
	
   

  	
   

  	
   

  
	
  DRUG SCREEN & BACKGROUND CHECK

  	
   

  	
  Passed
  through at cost (Checks required as a result of attrition will be the
  responsibility of Supplier.)*

  
	
   

  	
   

  	
   

  
	
  OVERTIME

  	
   

  	
  Premium
  Rate: [*]% premium above the Billable Hour Rate

  
	
   

  	
   

  	
   

  
	
  HOLIDAY RATE

  	
   

  	
  [*]%
  premium above the applicable Billable Hour rate. Applies to CSRs, Specialty
  CSR’s and Contract Positions.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  New
  Hire/Growth $[*]

  
	
   

  	
   

  	
  Nesting:
  $[*]

  
	
  TRAINING RATE

  	
   

  	
  Continuing
  Education Training: [*]

  
	
   

  	
   

  	
  Conversion
  Training as defined in section 12.5.e [*]

  
	
   

  	
   

  	
  All
  Attrition: [*]

  

*
Ramp Specific Notes

·                  AT&T will
not be charged for New Hire Training and associated Drug Screen &
Background Check for the first [*] CSRs that successfully complete New Hire
training.

·                  Any CSRs beyond
the initial [*] will be considered as growth and all costs associated with New
Hire training, Background checks and Drug Screen tests will be passed through
to AT&T.

 

20

 

Exhibit C

Program Descriptions

 

	
  Program Name

  	
   

  	
  Program Description

  	
   

  	
  Program Projects by Sites

  Any changes to the mix of

  Program project(s) supported

  by Site shall be subject to

  Section 4.22 (Change Management) of the
  Agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Customer Service Experience (“CSE”)

  	
   

  	
  Inbound
  calls from post paid consumer subscribers. Duties include the following
  account maintenance activities: billing statement questions, adjustments,
  changes to features/services, changes of billing information, customer issues
  relative to price plans, customer cancellation inquiries, adding / deleting
  promotions & features, contract inquiries and termination dates,
  rate plan changes, account updates, lost / stolen phone resolutions, cancel
  requests, promotion / plan clarification, programming phones, equipment and
  features instructions, voice mail resets, respond to coverage concerns,
  equipment (wireless cell phones and PDAs) changes, assisting with handset
  issues and upgrading equipment, migration of customers between billing
  application, completion of downtime form and offline services, escalated
  services/resolution. Clerical/User ID Services include Activities directly
  related to data entry, updating, typing, filing, creation of job aids,
  updating CSR communication web sites, maintenance of AT&T user IDs and
  such other activities as are approved by AT&T in writing.

  	
   

  	
  [*]

  

 

 

21

 

	
  Transfer of Business Responsibility (ToBR)

   

  	
   

  	
  Inbound
  calls from post paid subscribers to change ownership and financial
  responsibility for a line/s of service from one account holder to another.
  Duties include verification of authorization, determine eligibility and
  process credit check; set expectations for deposits, contract end dates, roll
  over minutes, advise of process fee/s and send collateral. Maintenance
  activities: Process upgrades on the receiving account if eligible; provision
  new rate plans, features, services and promotions. Handle inquiries for
  billing, customer cancellations, troubleshooting and escalated
  services/resolution/appeals.

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Technical Support

  	
   

  	
  Primary
  point of contact for issues relating to call and data processing, roaming
  wireless network, prepaid network, provisioning and TDMA, GSM and data
  technology. Offline work to support technical services can include filing
  cases and escalating resolution, and a filter team may exist to review case
  quality before routing to Tier III network groups.

  	
   

  	
  [*]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Specialty CSR’s

  Including but not limited to Commitment
  Rep, CAF, Production RSD, ICU Caseworkers, Abay RSD, M&P Specialist
  and Abay Coach

  	
   

  	
  Services
  for unique business types including call handling for escalated customer care
  issues specific to billing, equipment, coverage and account details.

  	
   

  	
  [*]

  

 

 

22

 

Exhibit D

 

Hours of Operations and Training Durations

 

Hours
of Operation may be amended from time to time as set forth in Section 4.22
(Change Management) of the Agreement.  
AT&T reserves the right to modify (decrease or increase) Services
Hours of Operation upon [*] calendar days written notice to Supplier.

 

	
  Program Names

  	
   

  	
  Project

  	
   

  	
  Site

  	
   

  	
  Hours of 

  Operation

  All Times 

  Listed in CST

  	
   

  	
  Maximum

  New Hire

  Training

  Days

  	
   

  	
  Maximum

  Nesting

  Days

  
	
  Customer Service Experience (“CSE”)

  	
   

  	
  Southeast
  CSE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
   

  	
   

  	
  South
  Central CSE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
   

  	
   

  	
  North
  Central CSE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  Technical Support

  	
   

  	
  South
  East

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
   

  	
   

  	
  North
  Central

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  Transfer of Business Responsibility (“ToBR”)

  	
   

  	
  National

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  
	
  Specialty CSRs

  	
   

  	
  Commitment
  Rep, Credit and Adjustment Rep (CAF), Production RSD, Abay RSD, Abay Coach,
  ICU Caseworker, M&P Specialist

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  

 

28

 

Exhibit E

 

Specialty CSR’s

Ratios and Descriptions

 

The
Parties acknowledge that Supplier shall begin providing Services related to
Specialty CSRs for any given Site only upon receipt of a Change Notice from
AT&T as described in Section 4.22 (Change Management) of the
Agreement. In addition, AT&T may terminate such Services associated with
Specialty CSR’s by delivering a Change Notice to Supplier at any time.  The Parties acknowledge that these Services
will be provided, if at all, at AT&T’s sole discretion.

 

	
  Position Name

  	
   

  	
  Required Ratio

  
	
  Commitment Rep

  	
   

  	
  [*]

  
	
  ICU Caseworker

  	
   

  	
  [*]

  
	
  CAF (Credits and Adjustments) Rep

  	
   

  	
  [*]

  
	
  Production RSD

  	
   

  	
  [*]

  
	
  Abay RSD

  	
   

  	
  [*]

  
	
  Abay Coach

  	
   

  	
  [*]

  
	
  M&P Specialist

  	
   

  	
  [*]

  

 

Specialty CSR Descriptions

 

a)             Commitment Rep

 

A Commitment Rep makes outbound
customer care calls in response to commitments set by customer care.  The purpose is to follow up with the customer
at a later time to test resolutions and/or provide resolutions for issues such
as equipment ordering, troubleshooting and bill reviews.

 

b)             ICU Caseworker

 

An ICU Caseworker identifies solutions to unresolved
customer needs and global affecting issues. They partner with resources in all
departments to determine the best possible course of action, educate agents in
huddles, provide feedback/coaching opportunities and create trending reports.

 

c)              Credits and Adjustments Rep

 

A Credits and Adjustments Rep monitors/researches and
tracks the approval of all credits and adjustment forms that exceed inbound
care CSRs Schedule of Authorization’s.

 

d)             Production RSD

 

A Production RSD is a CSR who
walk the call center floor providing assistance to call taking CSRs by guiding
them on how/where to find answers, appropriate tool usage and
policies/procedures.  Interactions are
tracked in order to identify trends and educational opportunities. This
position also requires a minimum amount of time taking inbound calls to keep up
their skills.

 

e)              Abay Coach

 

A Nesting Coach is a non-call
taking support CSR who partners closely with Nesting supervisors to develop
newly hired CSRs and facilitate team meetings. 
Duties include reviewing performance metrics, creating SMART coaching
plans and live call monitoring.

 

29

 

f)               Abay RSD

 

A Nesting RSD is a non-call taking support CSR who walk
the Site floor providing assistance to call taking CSRs by guiding them on
how/where to find answers, appropriate tool usage and policies/procedures.  Interactions are tracked in order to identify
trends and educational opportunities. 
Resources are monitored in real time to improve efficiencies.

 

g)             M&P Specialist

 

An
M&P Specialist handles functions of a Site by tracking, compiling,
summarizing and distributing information for tasks involving quality and
performance management.  Other duties include but are not limited to, audits,
Clarify maintenance and application troubleshooting, high level
credits/adjustments, creating center communications and various special
projects.

 

30

 

Exhibit F

 

Contract Positions Descriptions

 

The
Parties acknowledge that Supplier shall begin providing Services related to a
Contract Position for any given Site only upon receipt of a Change Notice from
AT&T as described in Section 4.22 (Change Management) of the
Agreement. In addition, AT&T may terminate such Services associated with
Contract Positions by delivering a Change Notice to Supplier at any time.  The Parties acknowledge that these Services
will be provided, if at all, at AT&T’s sole discretion.

 

Contract
Position Descriptions

 

a.              Quality Champion

 

A Quality Champion interacts with all departments to
coordinate quality assurance training, analyze reporting and to create
effective action plans. Duties include tracking, trending, researching and
identifying/removing obstacles; creating job aids, speaking in huddles and
communicating effectively with AT&T.

 

b.              Sales Champion

 

A Sales Champion interacts with all departments to
communicate sales goals.  Duties include
motivating employees, troubleshooting performance issues, providing effective
coaching, creating job aids and posting performance results.

 

c.               ICU Lead

 

Manages the urgent case process within the Site. Duties
include tracking, trending, researching and identifying/removing obstacles,
case assignment and performance review to ICU Caseworkers when applicable.

 

31

 

Exhibit G

 

Technology Requirements

 

1.1                   Desktop

 

Whereas
AT&T Vendor Management will deliver to Supplier, an updated AT&T
Desktop Configuration Checklist where Supplier shall provide and support
desktop hardware and software in compliance with the AT&T Desktop
Configuration Checklist, Supplier shall only be required to refresh desktop
hardware every three (3) years to ensure optimal performance is maintained
for AT&T applications.

 

1.2                   Voice
Network/Telephony

 

Supplier
shall provide Local Exchange Carrier (LEC) circuits to support outbound
calling, including transferred calls. 
The quantity and configuration of the circuits required varies and
AT&T and Supplier, through mutual agreement will determine any
configuration changes and/or augmentations. 
All Supplier-provided LEC circuits shall be installed in accordance with
AT&T standard architecture requirements.

 

Supplier
is required to provide a United States point of presence for circuit
termination.   Supplier shall provide no
higher than a [*] round trip time with voice over ip transport technology to
maintain acceptable call quality to meet the AT&T customer satisfaction
measures.

 

The
maximum number of CSRs per Intelligent Call Management Peripheral Gateway (ICM
PG) pair is based upon maximum concurrent CSRs. 
AT&T’s standard architecture requirements allows a maximum of one
thousand five hundred (1,500) concurrent CSRs per ICM PG pair.  AT&T, at its sole discretion, may specify
changes to this allowable limit. 
Supplier shall provide additional facilities (space, power, network,
telephony hardware and software) as required to support this limit in
accordance with the AT&T standard architecture requirements.

 

Supplier
will provide disaster recovery for and geographic redundancy of its Automatic
Call Distributor (ACD) in accordance with AT&T standard architecture
requirements.

 

1.3                   Data
Network

 

Supplier
shall provide a continental United States point of presence for network
connectivity to AT&T. The network design for connectivity between the two
entities shall comply with AT&T Standard Architecture Requirements.
Supplier utilizes Business-to-Business (B2B) VPN to interconnect to AT&T,
Supplier shall be responsible for Supplier’s internet service

 

Supplier-to-Supplier
(non-ATT) traffic is not permitted. 
AT&T shall not be used as a transit network.

 

Supplier
shall provide geographic network redundancy to mutually agreed upon AT&T
Perimeter infrastructures designed to provide business to business connectivity
if redundant connectivity is necessary.

 

AT&T
will support a maximum of [*] business-to-business connections (excludes CLEC
connections).  Supplier agrees to
consolidate multiple connections into [*]connections, [*].  AT&T recommends Supplier’s use of Border
Gateway Protocol (BGP) to control routing over primary and backup
connections.  Both connections shall
route identical address space. Only the primary connection passes traffic.  In the event the primary connection fails,
traffic shall be dynamically routed to the backup connection.  Each of the two connections shall have enough
capacity to handle all traffic.

 

Registered
address space is required for all connections. 
It is the Supplier’s responsibility to NAT (“Network Address Translation”)
private address space to registered address space.  A user-to-NAT ratio of 35:1 is recommended to
avoid latency issues. (Example: 35 users per NAT’d IP; 200 users would require
6 NAT’d IP addresses).

 

32

 

Supplier
is required to manage and support latency within Supplier’s network and shall
provide no higher than a [*] to the point of presence; values higher than this
that impact performance due to latency in the Supplier’s network shall be the
responsibility of Supplier to correct.

 

Supplier
shall notify AT&T in advance of implementing Supplier network changes
impacting Supplier connectivity with AT&T networks including but not
limited to topology or technology changes and office relocations within the
Supplier network.

 

Supplier
shall be responsible for monitoring Supplier’s network performance and capacity
to ensure such performance and capacity support Supplier’s performance
obligations under this Order.

 

1.4                   Application
Monitoring and Tools

 

Suppliers
shall provide one (1) personal computer at each Site that will be used as
a “Tools and Monitoring Machine”. 
Supplier shall promptly respond to tools and monitoring alerts delivered
to Supplier by AT&T.   In the event
such Tools and Monitoring Machine stops reporting, Supplier shall immediately
reactivate that machine and resume reporting within [*] hours of alert
notification.

 

33

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