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                                                                    EXHIBIT 10.1

                         SYKES ENTERPRISES, INCORPORATED
                       2004 NONEMPLOYEE DIRECTOR FEE PLAN

                             ARTICLE I. DEFINITIONS

         1.1      DEFINITIONS. Whenever the following terms are used in this
Plan they shall have the meanings specified below unless the context clearly
indicates to the contrary:

         (a)      "Board": The Board of Directors of the Company.

         (b)      "Common Stock": The Company's Common Stock, par value $.01 per
share.

         (c)      "Common Stock Unit": A bookkeeping entry that records the
equivalent of one Share.

         (d)      "Company": Sykes Enterprises, Incorporated or any successor or
successors thereto.

         (e)      "Nonemployee Director": An individual duly elected or chosen
as a Director of the Company who is not also an employee of the Company or its
subsidiaries.

         (f)      "Plan": The Plan set forth in this instrument as it may, from
time to time, be amended.

         (g)      "Share": A fully paid, non-assessable share of Common Stock.

                               ARTICLE II. PURPOSE

         The purpose of this Plan is to secure for the Company and its
shareholders the benefits of the incentive inherent in increased ownership of
Common Stock of the Company by members of the Board of Directors of the Company
who are not employees of the Company or any of its Subsidiaries, by providing
for the payment of a portion of each Nonemployee Director's compensation in
Common Stock. It is expected that such ownership will further align the
interests of such Nonemployee Directors with the shareholders of the Company,
thereby promoting the long-term profits and growth of the Company, and will
encourage such Nonemployee Directors to remain directors of the Company and
provide them with the benefits of deferring the receipt of some of such
compensation. It is also expected that the Plan will encourage qualified persons
to become directors of the Company.

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                ARTICLE III. INITIAL GRANT OF COMMON STOCK UNITS

         In consideration of joining the Board, upon the initial election of a
Nonemployee Director to the Board, such Nonemployee Director shall receive an
award of Common Stock Units. The number of Common Stock Units shall be
determined by dividing a dollar amount to be determined from time to time by the
Board (initially set at $30,000) by an amount equal to 110% of the average
closing prices of the Company's common stock for the five trading days prior to
the date the Nonemployee Director is elected, rounded to the nearest whole
number of Common Stock Units. The initial grant of Common Stock Units will vest
in three equal installments, one-third on the date of each of the following
three annual shareholders' meetings.

                         ARTICLE IV. ANNUAL RETAINER FEE

         In consideration of their services as members of the Board, each
Nonemployee Director shall be entitled to receive an annual retainer fee in such
amount as shall be determined from time to time by the Board (initially set at
$50,000). The annual retainer fee shall be payable in advance on the day after
the annual shareholders' meeting in such year and shall be paid 25% in cash and
75% in Common Stock Units. The number of Common Stock Units shall be determined
by dividing 75% of the amount of the annual retainer fee by an amount equal to
105% of the average of the closing prices for the Company's common stock on the
five trading days preceding the award date (the day after the annual meeting),
rounded to the nearest whole number of Common Stock Units. The annual grant of
Common Stock Units will vest in two equal installments, one-half on the date of
each of the following two annual shareholders' meetings. The provision in this
Article IV for the payment of an annual retainer fee to Nonemployee Directors
shall not limit the ability of the Board to provide for additional compensation
payable to Nonemployee Directors for services on behalf of the Board over and
above those typically expected of Directors, including serving as Chair of a
Board committee.

            ARTICLE V. ACCELERATION OF VESTING OF COMMON STOCK UNITS

         Notwithstanding any provision hereof to the contrary, all Common Stock
Units shall automatically vest upon the termination of a Director's service as a
Director, whether by reason of death, retirement, resignation, removal or
failure to be reelected at the end of his or her term.

                 ARTICLE VI. ISSUANCE OF SHARES OF COMMON STOCK
                             FOR COMMON STOCK UNITS.

         Upon the vesting of Common Stock Units, the Nonemployee Director shall
be entitled to receive for each vested Common Stock Unit one Share, and the
vested Common Stock Units shall be canceled. The Company shall cause a
certificate representing such Shares to be issued to the Nonemployee Director
promptly following the vesting of the Common Stock Units.

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             ARTICLE VII. ADMINISTRATION, AMENDMENT AND TERMINATION

         7.1      ADMINISTRATION. The Plan shall be administered by the Board.
The Board shall have such powers as may be necessary to discharge its duties
hereunder. The Board may, from time to time, employ agents and delegate to them
such administrative duties as it sees fit, and may from time to time consult
with legal counsel who may be counsel to the Company. All decisions and
determinations by the Board shall be final and binding on all parties.

         7.2      AMENDMENT AND TERMINATION. The Board may alter or amend this
Plan from time to time or may terminate it in its entirety; provided, however,
that no such action shall, without the consent of a Nonemployee Director, affect
the rights in any Common Stock Units issued to such Nonemployee Director; and
further provided, that, any amendment which must be approved by the shareholders
of the Company in order to comply with applicable law or the rules of any
national securities exchange or securities listing service upon which the Shares
are traded or quoted shall not be effective unless and until such approval is
obtained. Presentation of the Plan or any amendment thereof for shareholder
approval shall not be construed to limit the Company's authority to offer
similar or dissimilar benefits in plans that do not require shareholder
approval.

         7.3      ADJUSTMENTS. In the event of any change in the outstanding
Common Stock by reason of (a) any stock dividend, stock split, combination of
shares, recapitalization or any other change in the capital structure of the
Company, (b) any merger, consolidation, spin-off, split-off, spin-out, split-up,
reorganization, partial or complete liquidation or other distribution of assets,
issuance of rights or warrants to purchase securities, or (c) any other
corporate transaction or event having an effect similar to any of the foregoing,
the number or kind of Shares that may be issued under the Plan and the number of
Common Stock Units credited to a Nonemployee Director automatically shall be
adjusted so that the proportionate interest of the Nonemployee Directors shall
be maintained as before the occurrence of such event. Such adjustment shall be
conclusive and binding for all purposes with respect to the Plan.

         7.4      SUCCESSORS. The Company shall require any successor (whether
direct or indirect, by purchase, merger, consolidation, reorganization or
otherwise) to all or substantially all of the business and/or assets of the
Company expressly to assume and to agree to perform this Plan in the same manner
and to the same extent the Company would be required to perform if no such
succession had taken place. This Plan shall be binding upon and inure to the
benefit of the Company and any successor of or to the Company, including without
limitation any persons acquiring directly or indirectly all or substantially all
of the business and/or assets of the Company whether by sale, merger,
consolidation, reorganization or otherwise (and such successor shall thereafter
be deemed the "Company" for the purpose of this Plan), and the heirs,
beneficiaries, executors and administrators of each Nonemployee Director.

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                      ARTICLE VIII. SHARES SUBJECT TO PLAN

         Subject to adjustment as provided in this Plan, the total number of
Shares of Common Stock which may be issued under this Plan shall be Four Hundred
Fifty Thousand (450,000). Shares may be shares of original issuance or treasury
shares or a combination of the foregoing.

              ARTICLE IX. EFFECTIVE DATE; APPROVAL BY SHAREHOLDERS

         The Plan shall be effective as of May 6, 2004, and shall be submitted
for approval by the shareholders of the Company at the 2005 annual shareholders'
meeting. If such approval is not obtained at such meeting, this Plan shall be
nullified and all Common Stock Units issued prior to such annual meeting shall
be canceled automatically.

                          ARTICLE X. GENERAL PROVISIONS

         10.1     NO CONTINUING RIGHT TO SERVE AS A DIRECTOR. Neither the
adoption or of this Plan, nor any document describing or referring to this Plan,
or any part thereof, shall confer upon any Nonemployee Director any right to
continue as a director of the Company or any subsidiary of the Company.

         10.2     RIGHTS AS A SHAREHOLDER. Until the vesting of a Common Stock
Unit, a Nonemployee Director shall have none of the rights of a shareholder with
respect to his or her Common Stock Units. Upon the vesting of a Common Stock
Unit, the Nonemployee Director shall have the right to receive a Share for such
Common Stock Unit, shall be deemed to be the owner of such Share which shall be
deemed to be issued and outstanding, and shall have all of the rights of a
shareholder with respect to such Share.

         10.3     GOVERNING LAW. The provisions of this Plan shall be governed
by construed in accordance with the laws of the State of Florida.

         10.4     WITHHOLDING TAXES. To the extent that the Company is required
to withhold Federal, state or local taxes in connection with any component of a
Nonemployee Director's compensation in cash or Shares, and the amounts available
to Company for such withholding are insufficient, it shall be a condition the
receipt of any Shares that the Nonemployee Director make arrangements
satisfactory to the Company for the payment of the balance of such taxes
required to be withheld, which arrangement may include relinquishment of the
Shares. The Company and a Nonemployee Director may also make similar
arrangements with respect to payment of any other taxes derived from or related
to the payment of Shares with respect to which withholding is not required.

         10.5     MISCELLANEOUS. Headings are given to the sections of this Plan
as a convenience to facilitate reference. Such headings, numbering and
paragraphing shall not in any case be deemed in any way material or relevant to
the construction of this Plan or any provisions thereof. The use of the singular
shall also include within its meaning the plural, and vice versa.

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                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

PLEASE READ THIS AGREEMENT CAREFULLY. THIS AGREEMENT DESCRIBES THE BASIC LEGAL
AND ETHICAL RESPONSIBILITIES THAT YOU ARE REQUIRED TO OBSERVE AS AN EXECUTIVE
EXPOSED TO HIGHLY SENSITIVE TECHNOLOGY AND STRATEGIC INFORMATION. CONSULT WITH
YOUR LEGAL COUNSEL IF ALL THE TERM OR RENEWAL PERIOD AND PROVISIONS OF THIS
AGREEMENT ARE NOT FULLY UNDERSTOOD BY YOU.

      THIS AGREEMENT is made as of the 6th day of March, 2004, by and between
SYKES ENTERPRISES, INCORPORATED, a Florida corporation (the "Company"), and W.
MICHAEL KIPPHUT (the "Executive").

                              W I T N E S S E T H :

      WHEREAS, the Company desires to assure itself of the Executive's continued
employment in an executive capacity as the Company's Group Executive and Senior
Vice President, Finance; and

      WHEREAS, the Executive desires to be employed by the Company on the terms
and conditions hereinafter set forth; and

      NOW, THEREFORE, in consideration of the mutual covenants and agreements of
the parties contained herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
covenant and agree as follows:

      1. EMPLOYMENT AND DUTIES. Subject to the terms and conditions of this
Agreement, the Company shall employ the Executive during the Term (as
hereinafter defined) as its Group Executive and Senior Vice President, Finance.
The Executive shall report to the Office of the Chairman, which will comprise
the Chairman of the Board of Directors, the Chief Executive Officer, and the
President of the Company. The Executive accepts such employment and agrees to
devote his/her best efforts and entire business time, skill, labor, and
attention to the performance of such duties. During the Term, the Executive
agrees to promptly provide a description of any other commercial duties or
pursuits engaged in by the Executive to the Company's Board of Directors. If the
Board of Directors determines in good faith that such activities conflict with
the Executive's performance of his/her duties hereunder, the Executive shall
promptly cease such activities to the extent as directed by the Board of
Directors. It is acknowledged and agreed that such description shall be made
regarding any such activities in which the Executive owns more than 5% of the
ownership of the organization or which may be in violation of Section 5 hereof,
and that the failure of the Executive to provide any such description shall
enable the Company to terminate the Executive for Cause (as provided in Section
6(c) hereof). The Company agrees to hold any such information provided by the
Executive confidential and not disclose the same to any person other than a
person to whom disclosure is reasonably necessary or appropriate in light of the
circumstances. In addition, the Executive agrees to serve without additional
compensation if elected or appointed to any office or position, including as a
director, of the Company or any subsidiary or affiliate of the Company;
provided, however, that the Executive shall be entitled to receive such benefits
and additional compensation, if any, that is paid to executive officers of the
Company in connection with such service.

      2. TERM. Subject to the terms and conditions of this Agreement, including,
but not limited to, the provisions for termination set forth in Section 6
hereof, the employment of the Executive under this Agreement shall commence on
the effective date hereof and shall continue through and including the close of
business on the date set forth on Exhibit A attached hereto and incorporated
herein (such Term shall herein be defined as the "Term"). Provided, however,
that the Term shall renew automatically for successive two (2) year periods
("Renewal Periods") unless either party gives written notice of termination at
least that number of days set forth on Exhibit A before the end of the Term or

Executive/ Term or Renewal Period    Sykes Enterprises Inc.
Revised 7/03                             Page Number 1

<PAGE>

                                                              W. Michael Kipphut

Renewal Period, as applicable ("Renewal Notice Period"). The Executive agrees
that some portions of this Agreement, including Sections 4, 5, AND 6 hereof,
will remain in force after the termination of this Agreement.

      3. COMPENSATION.

      (a) Base Salary and Bonus. As compensation for the Executive's services
under this Agreement, the Executive shall receive and the Company shall pay a
weekly base salary set forth on Exhibit A. Such base salary may be increased but
not decreased during the Term in the Company's discretion based upon the
Executive's performance and any other factors the Company deems relevant. Such
base salary shall be payable in accordance with the policy then prevailing for
the Company's executives. In addition to such base salary, the Executive shall
be entitled during the Term to a performance bonus set forth on Exhibit A and to
participate in and receive payments from, at the Company's election, other bonus
and other incentive compensation plans, if any, as may be adopted by the Company
and made available to other similarly-situated executive officers of the
Company.

      (b) Payments. All amounts paid pursuant to this Agreement shall be subject
to withholding or deduction by reason of the Federal Insurance Contribution Act,
federal income tax, state and local income tax, if any, and comparable laws and
regulations.

      (c) Other Benefits. The Executive shall be reimbursed by the Company for
all reasonable and customary travel and other business expenses incurred by the
Executive in the performance of the Executive's duties hereunder in accordance
with the Company's standard policy regarding expense verification practices. The
Executive shall be entitled to that number of weeks paid vacation per year that
is available to other executive officers of the Company in accordance with the
Company's standard policy regarding vacations and such other fringe benefits as
may be set forth on Exhibit A and shall be eligible to participate in such
pension, life insurance, health insurance, disability insurance, and other
executive benefits plans, if any, which the Company may from time to time make
available to its similarly-situated executive officers generally.

      4. CONFIDENTIAL INFORMATION.

      (a) The Executive has acquired and will acquire information and knowledge
respecting the intimate and confidential affairs of the Company, including,
without limitation, confidential information with respect to the Company's
technical data, research and development projects, methods, products, software,
financial data, business plans, financial plans, customer lists, business
methodology, processes, production methods and techniques, promotional materials
and information, and other similar matters treated by the Company as
confidential (the "Confidential Information"). Accordingly, the Executive
covenants and agrees that during the Executive's employment by the Company
(whether during the Term or Renewal Period hereof or otherwise) and thereafter,
the Executive shall not, without the prior written consent of the Company,
disclose to any person, other than a person to whom disclosure is reasonably
necessary or appropriate in connection with the performance by the Executive of
the Executive's duties hereunder, any Confidential Information obtained by the
Executive while in the employ of the Company.

      (b) The Executive agrees that all memoranda; notes; records; papers or
other documents; computer disks; computer, video or audio tapes; CD-ROMs; all
other media and all copies thereof relating to the Company's operations or
business, some of which may be prepared by the Executive; and all objects
associated therewith in any way obtained by the Executive shall be the Company's
property. This shall include, but is not limited to, documents; computer disks;
computer, video and audio tapes; CD-ROMs; all other media and objects concerning
any technical data, methods, products, software, research and development
projects, financial data, financial plans, business plans, customer lists,
contracts, price lists, manuals, mailing lists, advertising materials; and all
other materials and records of any kind that may be in the Executive's
possession or under the Executive's control. The Executive shall not, except for
the Company's use, copy or duplicate any of the aforementioned documents or
objects, nor remove them from the Company's facilities, nor use any information
concerning them except for the Company's benefit, either during the Executive's
employment or thereafter. The Executive covenants and agrees that the Executive
will deliver all of the aforementioned documents and objects, if any, that may
be in the Executive's possession to the Company upon termination of the
Executive's employment, or at any other time at the Company's request.

Executive/ Term or Renewal Period    Sykes Enterprises Inc.
Revised 7/03                             Page Number 2

<PAGE>

                                                              W. Michael Kipphut

      (c) In any action to enforce or challenge these Confidential Information
provisions, the prevailing party is entitled to recover its attorney's fees and
costs.

      5. COVENANT NOT-TO-COMPETE AND NO SOLICITATION. Executive recognizes that
the Company is in the business of employing individuals to provide specialized
and technical services to the Company's Clients. The purpose of these Covenant
Not-to-Compete and No Solicitation provisions are to protect the relationship
which exists between the Company and its Client while Executive is employed and
after Executive leaves the employ of the Company. The consideration for these
Covenant Not-to-Compete and No Solicitation provisions is the Executive's
employment with the Company.

            (a) Executive acknowledges the following:

                  (1) The Company expended considerable resources in obtaining
            contracts with its Clients;

                  (2) The Company expended considerable resources to recruit and
            hire employees who could perform services for its Clients;

                  (3) Through his/her employ with the Company, Executive will
            develop a substantial relationship with the Company's existing or
            potential Clients;

                  (4) Executive will be exposed to valuable confidential
            business information about the Company, its Clients, and the
            Company's relationship with its Client;

                  (5) By providing services on behalf of the Company, Executive
            will develop and enhance the valuable business relationship between
            the Company and its Client;

                  (6) The relationship between the Company and its Client
            depends on the quality and quantity of the services Executive
            performs;

                  (7) Through employment with the Company, Executive will
            increase his/her opportunity to work directly for the Client or for
            a competitor of the Company; and

                  (8) The Company will suffer irreparable harm if Executive
            breaches these Covenant Not-to-Compete and No Solicitation
            provisions of this Agreement.

            (b) Executive agrees that:

                  (1) The relationship between the Company and its Client
            (developed and enhanced when the Executive performs services on
            behalf of the Company) is a legitimate business interest for the
            Company to protect;

                  (2) The Company's legitimate business interest is protected by
            the existence and enforcement of these Covenant Not-to-Compete and
            No Solicitation provisions;

                  (3) The business relationship which is created or exists
            between the Company and its Client, or the goodwill resulting from
            it, is a business asset of the Company and not the Executive; and

                  (4) Executive will not seek to take advantage of opportunities
            which result from his/her employment with the Company and that
            entering into the Agreement containing Covenant Not-to-Compete and
            No Solicitation provisions is reasonable to protect the Company's
            business relationship with its Clients.

Executive/ Term or Renewal Period    Sykes Enterprises Inc.
Revised 7/03                             Page Number 3

<PAGE>

                                                              W. Michael Kipphut

            (c) Restrictions on Executive. During the term of this Agreement and
      for a period of time set forth on Exhibit A after the termination of this
      Agreement, for whatever reason, whether such termination was by the
      Company or the Executive, voluntarily or involuntarily, and whether with
      or without cause, Executive agrees that he/she shall not, as a principal,
      employer, stockholder, partner, agent, consultant, independent contractor,
      employee, or in any other individual or representative capacity:

                  (1) Directly or indirectly engage in, continue in, or carry on
            the business of the Company or any business substantially similar
            thereto, including owning or controlling any financial interest in
            any corporation, partnership, firm, or other form of business
            organization which competes with or is engaged in or carries on any
            aspect of such business or any business substantially similar
            thereto;

                  (2) Consult with, advise, or assist in any way, whether or not
            for consideration of any kind, any corporation, partnership, firm,
            or other business organization which is now, becomes, or may become
            a competitor of the Company in any aspect of the Company's business
            during the Executive's employment with the Company, including, but
            not limited to, advertising or otherwise endorsing the products of
            any such competitor or loaning money or rendering any other form of
            financial assistance to or engaging in any form of transaction
            whether or not on an arm's length basis with any such competitor;

                  (3) Provide or attempt to provide or solicit the opportunity
            to provide or advise others of the opportunity to provide any
            services of the type Executive performed for the Company or the
            Company's Clients (regardless of whether and how such services are
            to be compensated, whether on a salaried, time and materials,
            contingent compensation, or other basis) to or for the benefit of
            any Client (i) to which Executive has provided services in any
            capacity on behalf of the Company, or (ii) to which Executive has
            been introduced to or about which the Executive has received
            information through the Company or through any Client from which
            Executive has performed services in any capacity on behalf of the
            Company;

                  (4) Retain or attempt to retain, directly or indirectly, for
            itself or any other party, the services of any person, including any
            of the Company's employees, who were providing services to or on
            behalf of the Company while Executive was employed by the Company
            and to whom Executive has been introduced or about whom Executive
            has received information through the Company or through any Client
            for which Executive has performed services in any capacity on behalf
            of the Company;

                  (5) Engage in any practice, the purpose of which is to evade
            the provisions of this Agreement or to commit any act which is
            detrimental to the successful continuation of or which adversely
            affects the business or the Company; provided, however, that the
            foregoing shall not preclude the Executive's ownership of not more
            than 2% of the equity securities of a company whose securities are
            registered under Section 12 of the Securities Exchange Act of 1934,
            as amended; or

                  (6) For purpose of these Covenant Not-to-Compete and No
            Solicitation provisions, Client includes any subsidiaries,
            affiliates, customers, and clients of the Company's Clients. The
            Executive agrees that, for the purpose of Sections 5(c)(1), 5(c)(2),
            and 5(c)(4), the geographic scope of this Covenant Not-to-Compete
            shall extend to the geographic area that is within 50 miles of any
            of the Company's business locations. For purposes of Section
            5(c)(3), the geographic scope of this Covenant Not-to-Compete shall
            extend to the geographic area where the Company's Clients conduct
            business at any time during the Term of this Agreement. For
            purposes, this Agreement, "Clients" means any person or entity to
            which the Company provides or has provided within a period of one
            (1) year prior to the Executive's termination of employment, labor,
            materials or services for the furtherance of such entity's or
            person's business or any person or entity that within such period of
            one (1) year the Company has pursued or communicated with for the
            purpose of obtaining business for the Company.

Executive/ Term or Renewal Period    Sykes Enterprises Inc.
Revised 7/03                             Page Number 4

<PAGE>

                                                              W. Michael Kipphut

            (d) Enforcement. These Covenant Not-to-Compete and No Solicitation
      provisions shall be construed and enforced under the laws of the State of
      Florida. In the event of any breach of this Covenant Not-to-Compete, the
      Executive recognizes that the remedies at law will be inadequate, and that
      in addition to any relief at law which may be available to the Company for
      such violation or breach and regardless of any other provision contained
      in this Agreement, the Company shall be entitled to equitable remedies
      (including an injunction) and such other relief as a court may grant after
      considering the intent of this Section 5. It is further acknowledged and
      agreed that the existence of any claim or cause of action on the part of
      the Executive against the Company, whether arising from this Agreement or
      otherwise, shall in no way constitute a defense to the enforcement of this
      Covenant Not-to-Compete, and the duration of this Covenant Not-to-Compete
      shall be extended in an amount which equals the time period during which
      the Executive is or has been in violation of this Covenant Not-to-Compete.
      In the event a court of competent jurisdiction determines that the
      provisions of this Covenant Not-to-Compete are excessively broad as to
      duration, geographic scope, prohibited activities or otherwise, the
      parties agree that this covenant shall be reduced or curtailed only to the
      extent necessary to render it enforceable.

            e) In an action to enforce or challenge these Covenant
      Not-to-Compete and No Solicitation provisions, the prevailing party is
      entitled to recover its attorney's fees and costs.

            f) By signing this Agreement, the Executive acknowledges that he/she
      understands the effects of these Covenant Not-to-Compete and No
      Solicitation provisions and agrees to abide by them.

      6. TERMINATION

      (a) Death. The Executive's employment hereunder shall terminate upon
his/her death. The Company shall pay Executive's estate all accrued but unpaid
base salary and bonus and all accrued but unused vacation time through the date
of death.

      (b) Disability. If during the Term the Executive becomes physically or
mentally disabled in accordance with the terms and conditions of any disability
insurance policy covering the Executive, or, if due to such physical or mental
disability the Executive becomes unable for a period of more than six (6)
consecutive months to perform his/her duties hereunder on substantially a
full-time basis as determined by the Company in its reasonable discretion, the
Company may, at its option, terminate the Executive's employment hereunder upon
not less than thirty (30) days' written notice.

      (c) Cause. The Company may terminate the Executive's employment hereunder
for Cause effective immediately upon notice. For purposes of this Agreement, the
Company shall have "Cause" to terminate the Executive's employment hereunder:
(i) if the Executive engages in conduct which has caused or is reasonably likely
to cause demonstrable and serious injury to Company; (ii) if the Executive is
convicted of a felony as evidenced by a binding and final judgment, order, or
decree of a court of competent jurisdiction; (iii) for the Executive's neglect
of his/her duties hereunder or the Executive's refusal to perform his/her duties
or responsibilities hereunder as determined by the Company's Board of Directors
in good faith; (iv) consistent failure to achieve goals established by the Board
of Directors or their designee(s), provided that such goals are presented in
writing or otherwise communicated to Executive; (v) gross incompetence; (vi) for
the Executive's violation of this Agreement, including, without limitation,
Section 5 hereof; (vii) chronic absenteeism; (viii) for use of illegal drugs;
(ix) insobriety by the Executive while performing his or her duties hereunder;
and (x) for any act of dishonesty or falsification of reports, records, or
information submitted by the Executive to the Company.

      (d) Non-Compete Payment. In the event of a termination of the Executive's
employment pursuant to Section 6 or by the Executive, all payments and Company
benefits to the Executive hereunder, except the payments (if any) specified in
Section 6(a) above or provided below, shall immediately cease and terminate. In
the event of termination by the Company of the Executive's employment with the
Company for any reason other than pursuant to Section 6(c), the Covenant
Not-to-Compete set forth in Section 5 hereof shall remain in full force and
effect through the full stated Term of this Agreement; and additionally, from
the end of the Term of this Agreement through the non-

Executive/ Term or Renewal Period    Sykes Enterprises Inc.
Revised 7/03                             Page Number 5

<PAGE>

                                                              W. Michael Kipphut

compete period stated on Exhibit "A", the Company shall pay the Executive
Not-to-Compete pay in equal biweekly installments ("Non-Compete Payment
Installments") in the amount set forth on Exhibit A ("Non-Compete Payment").
Such Non-Compete Payment, however, shall not be required to be paid by the
Company if the Company elects, in its sole discretion, to release the Executive
from the Covenant Not-to-Compete set forth in Section 5 hereof. Additionally, if
the Company commences paying Executive Non-Compete Payment Installments and
subsequently elects in the future, in its sole discretion, to release Executive
from the Covenant Not-to-Compete and gives notice to Executive, then, at the
effective date of such notice, Executive shall no longer be subject to the
Covenant Not-to-Compete, and no further Non-Compete Payment Installment shall be
due or payable to Executive. If the Company terminates the Executive's
employment pursuant to Section 6(c) or the Executive terminates such employment,
the Executive shall not be entitled to the Non-Compete Payment, and the Covenant
Not-to-Compete set forth in Section 5 hereof shall remain in full force and
effect. Notwithstanding anything to the contrary herein contained, the Executive
shall receive all compensation and other benefits to which he or she was
entitled under this Agreement or otherwise as an executive of the Company
through the termination date.

      7. NOTICE. For purposes of this Agreement, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been duly given when hand-delivered, sent by telecopier, facsimile
transmission, or other electronic means of transmitting written documents (as
long as receipt is acknowledged) or mailed by United States certified or
registered mail, return receipt requested, postage prepaid, addressed as
follows:

            If to the Executive, to the address set forth on the signature page.

            If to the Company:    Sykes Enterprises, Incorporated
                                  400 North Ashley Drive, Suite 2800
                                  Tampa, Florida 33602
                                  Attention: Group Executive and Sr. VP Human
                                             Resources

                                  with a copy to:

                                  Sykes Enterprises, Incorporated
                                  400 North Ashley Drive, Suite 2800
                                  Tampa, Florida 33602
                                  Attention: General Counsel

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that a notice of change of address shall
be effective only upon receipt.

      8. ENFORCEMENT AND GOVERNING LAW. It is stipulated that a breach by
Executive of the restrictive covenants set forth in Sections 4 and 5 of this
Agreement will cause irreparable damage to Company or its Clients, and that in
the event of any breach of those provisions, Company is entitled to injunctive
relief restraining Executive from violating or continuing a violation of the
restrictive covenants as well as other remedies it may have. Additionally, such
covenants shall be enforceable against the Executive's successors or assigns or
by successor assigns.

            The validity, interpretation, construction, and performance of this
Agreement shall be governed by the internal laws of the State of Florida. Any
litigation to enforce this Agreement shall be brought in the state or federal
courts of Hillsborough County, Florida, which is the principal place of business
for Company and which is considered to be the place where this Agreement is
made. Both parties hereby consent to such courts' exercise of personal
jurisdiction over them.

      In the event action is brought by either party to enforce any of the terms
and conditions set forth herein, the prevailing party is entitled to recover its
reasonable attorneys' fees and costs.

Executive/ Term or Renewal Period    Sykes Enterprises Inc.
Revised 7/03                             Page Number 6

<PAGE>

                                                              W. Michael Kipphut

      9. MISCELLANEOUS. No provision of this Agreement may be modified or waived
unless such waiver or modification is agreed to in writing signed by the parties
hereto. No waiver by any party hereto of any breach by any other party hereto
shall be deemed a waiver of any similar or dissimilar term or condition at the
same or at any prior or subsequent time. This Agreement is the entire agreement
between the parties hereto with respect to the Executive's employment by the
Company and there are no agreements or representations, oral or otherwise,
expressed or implied, with respect to or related to the employment of the
Executive which are not set forth in this Agreement. Any prior agreement
relating to the Executive's employment with the Company is hereby superseded and
void, and is no longer in effect. This Agreement shall be binding upon and inure
to the benefit of the Company, its respective successors and assigns, and the
Executive and his/her heirs, executors, administrators and legal
representatives. Except as expressly set forth herein, no party shall assign any
of his/her or its rights under this Agreement without the prior written consent
of the other party and any attempted assignment without such prior written
consent shall be null and void and without legal effect. The parties agree that
if any provision of this Agreement shall under any circumstances be deemed
invalid or inoperative, the Agreement shall be construed with the invalid or
inoperative provision deleted and the rights and obligations of the parties
shall be construed and enforced accordingly. This Agreement may be executed in
one or more counterparts, each of which shall be deemed to be an original but
all of which together will constitute but one and the same instrument. This
Agreement has been negotiated and no party shall be considered as being
responsible for such drafting for the purpose of applying any rule construing
ambiguities against the drafter or otherwise.

      10. PLACE OF PERFORMANCE. During the Term, Executive's principal place of
business shall be located in Tampa, Florida.

      11. TERMINATION AFTER CHANGE OF CONTROL. In the event Executive's
employment hereunder is terminated by the Company for any reasons set forth in
Section 6(a), (b), or (c), or by the Executive (other than for Good Reason,
defined herein below), then this Section 11, dealing with Change of Control,
shall have no effect, and Executive shall not be entitled to any Change of
Control Termination Payment in such event. If, however, Executive's employment
hereunder is terminated after a Change of Control (i) by the Executive for Good
Reason; or (ii) by the Company (or any successor thereto or assignee thereof)
other than pursuant to Section 6(a), (b), or (c), then, in that event, Executive
shall receive (in equal installments over two years and in accordance with
Company policy immediately prior to such termination) an amount to be determined
by multiplying by two (2) Executive's base salary and earned bonus (regardless
of whether such bonus is paid by the Company) for the calendar year immediately
prior to such termination ("Change of Control Termination Payment"). A "Change
in Control" shall be deemed to have occurred if the event set forth in any one
of the following paragraphs shall have occurred:

            (i) the following individuals cease for any reason to constitute a
majority of the number of directors then serving: individuals who, immediately
after the annual meeting of shareholders of the Company held in 2003,
constituted the Board of Directors and any new directors (other than directors
whose initial assumption of office is in connection with an actual or threatened
election contest, including but not limited to a consent solicitation, relating
to the election of directors of the Company, as such terms are used in Rule
14a-11 of Regulation 14A under the Act) whose appointment or election by the
Board or nomination for election by the Company's stockholders was approved by a
vote or at least two-thirds (2/3) of the directors then still in office who
either were directors immediately after the annual meeting of shareholders of
the Company held in 2003 or whose appointment, election or nomination for
election was previously so approved; or

            (ii) the stockholders of the Company approve a merger, consolidation
or share exchange of the Company with any other corporation or approve the
issuance of voting securities of the Company in connection with a merger,
consolidation or share exchange of the Company (or any direct or indirect
subsidiary of the Company) pursuant to applicable stock exchange requirements,
other than (A) a merger, consolidation or share exchange which would result in
the voting securities of the Company outstanding immediately prior to such
merger, consolidation or share continuing to represent (either by remaining
outstanding or by being converted into the right to receive voting securities of
the surviving entity or any parent thereof) at least 50% of the combined voting
power of the voting securities of the Company or such surviving entity or any
parent thereof outstanding immediately after such merger, consolidation or share
exchange, or (B) a merger, consolidation or share exchange effected to implement
a recapitalization of the Company (or similar transaction) in which no Person
(other than John H. Sykes) is or becomes the beneficial owner,

Executive/ Term or Renewal Period    Sykes Enterprises Inc.
Revised 7/03                             Page Number 7

<PAGE>

                                                              W. Michael Kipphut

directly or indirectly, of securities of the Company (not including in the
securities beneficially owned by such Person any securities acquired directly
from the Company or its Affiliates after the annual meeting of shareholders of
the Company held in 2003 pursuant to express authorization by the Board that
refers to this exception) representing 45% or more of either the then
outstanding shares of common stock of the Company or the combined voting power
of the Company's then outstanding voting securities; or

            (iii) the stockholders of the Company approve a plan of complete
liquidation or dissolution of the Company or an agreement for the sale or
disposition by the Company of all or substantially all of the Company's assets
(in one transaction or a series of related transactions within any period of 24
consecutive months), other than a sale or disposition by the Company of all or
substantially all of the Company's assets to an entity at least 75% of the
combined voting power of the voting securities of which are owned by Persons in
substantially the same proportions as their ownership of the Company immediately
prior to such sale.

            Notwithstanding the foregoing, no "Change in Control" shall be
deemed to have occurred if there is consummated any transaction or series of
integrated transactions immediately following which the record holders of the
common stock of the Company immediately prior to such transaction or series of
transactions continue to have substantially the same proportionate ownership in
an entity that owns all or substantially all of the assets the Company
immediately following such transaction or series of transactions.

            The Executive may terminate his own employment pursuant to and only
after the condition of this Section 11 has occurred for Good Reason; and the
Company expressly acknowledges and agrees that, upon such termination, the
Executive shall be entitled to the Change of Control Termination Payment, as
hereinafter defined, to which the Executive, but for such termination, would
otherwise be entitled. For purposes of this Agreement, "Good Reason" shall mean
the occurrence of any of the following events subsequent to a Change of Control:
(i) any reduction of the Base Salary or any other compensation or benefits
(other that the Performance Bonus); or (ii) any other material adverse change to
the terms and conditions of the Executive's employment, including but not
limited to any diminution of the Customary Duties (as herebelow defined).

            Subsequent to a Change of Control, the Executive shall continue to
hold such office and such level of authority and responsibility within the
Company either (a) as was held immediately prior to such Change of Control or
(b) of such scope, importance and influence as is customarily associated with
the office held by him at the time of such Change of Control (hereinafter
collectively referred to as the "Customary Duties").

      12. ARBITRATION OF DISPUTES.

      (a) Duty to Arbitrate. Except for any claim by the Company to enforce the
restrictive covenants set forth in Sections 4 and 5 above, Company and Executive
agree to resolve by binding arbitration any claim or controversy arising out of
or related to Executive's employment by Company or this Agreement, to include
all matters directly or indirectly related to your recruitment, employment or
termination of employment by the Company including, but not limited to claims
involving laws against discrimination whether brought under federal and /or
state law, and/or claims involving co-employees but excluding workers
compensation claims, whether such claim is based in contract, tort, statute, or
any other legal theory, including any claim for damages, equitable relief, or
both. The duty to arbitrate under this Section extends to any claim by or
against any officer, director, shareholder, employee, agent, representative,
parent, subsidiary, affiliate, heir, trustee, legal representative, successor,
or assign of either party making or defending any claim that would otherwise be
arbitrable under this Section. However, this Section shall not be interpreted to
preclude either party from petitioning a court of competent jurisdiction for
temporary injunctive relief, solely to preserve the status quo pending
arbitration of the claim or controversy, upon a proper showing of the need for
such relief.

      (b) The Arbitrator. A single arbitrator will conduct the arbitration in
Tampa, Florida, U.S.A., in accordance with the Commercial Arbitration Rules of
the American Arbitration Association (the "Rules"), and judgment upon the
written award rendered by the arbitrator may be entered in any court of
competent jurisdiction. Notwithstanding the application of the Rules, however,
discovery in the arbitration, including interrogatories, requests for
production, requests for admission, and depositions, will be fully available and
governed by the Federal Rules of

Executive/ Term or Renewal Period    Sykes Enterprises Inc.
Revised 7/03                             Page Number 8

<PAGE>

                                                              W. Michael Kipphut

Civil Procedure and Local Rules of the United States District Court for the
Middle District of Florida. The parties may agree upon a person to act as sole
arbitrator within thirty (30) days after submission of any claim or controversy
to arbitration pursuant to this Section. If the parties are unable to agree upon
such a person within such time period, an arbitrator shall be selected in
accordance with the Rules. The arbitrator will not have the power to award
punitive or exemplary damages.

      (c) Limitations Period. The parties agree that any claim or controversy
that would be arbitrable under this Section must be submitted to arbitration
within one (1) year after the claim or controversy arises and that a failure to
institute arbitration proceedings within such time period shall constitute an
absolute bar to the institution of any proceedings, in arbitration or in any
court, and a waiver of all such claims. This Section will survive the expiration
or early termination of this Agreement.

      (d) Governing Law. This Agreement shall be governed in its construction,
interpretation, and performance by the laws of the State of Florida, without
reference to law pertaining to conflict of laws. However, the Federal
Arbitration Act, as amended, will govern the interpretation and enforcement of
this Section.

      (e) Attorneys' Fees. The prevailing party in any arbitration or dispute,
or in any litigation, arising out of or related to Executive's employment by
Company or this Agreement, shall be entitled to recover all costs and reasonable
attorneys' fees incurred on all levels and in all proceedings, including, but
not limited to, arbitration, filing, hearing, processing, and witness fees, and
any other costs and fees incurred, in any investigations, arbitrations, trials,
bankruptcies, and appeals.

      (f) Severability. Each part of this Section is severable. A holding that
any part of this Section is unenforceable will not affect the duty to arbitrate
under this Section.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

SYKES ENTERPRISES, INCORPORATED                 EXECUTIVE

By: /s/ Jenna R. Nelson                /s/ W. Michael Kipphut
    -------------------                ----------------------

                                                Address:
                                                ________________________________

                                                ________________________________

Executive/ Term or Renewal Period    Sykes Enterprises Inc.
Revised 7/03                             Page Number 9

<PAGE>

                                                              W. Michael Kipphut

                        EXHIBIT A TO EMPLOYMENT AGREEMENT

Term:                    Through March 5, 2006

Base Salary:             $7,086.54 per week

Performance Bonus:       0% - 75% of annual base salary and based on the
                         following components:

                         75% Consolidated EBIT
                         25% Key Performance Indicators ("KPI")

                         Performance bonus payments will be made in accordance
                         with the Company's standard policy for the payment of
                         performance bonuses.

Fringe Benefits:         Standard executive fringe benefits

Renewal Notice Period    Three hundred and sixty five (365) days

THE COMPANY RESERVES THE RIGHT, AT ITS SOLE DISCRETION, AT SUCH TIME OR TIMES AS
IT ELECTS, TO CHANGE OR ELIMINATE BONUSES OR OTHER BENEFITS.

IN WITNESS WHEREOF, the parties have executed this Exhibit A to the Employment
Agreement as of the 6th day of March, 2004.

SYKES ENTERPRISES, INCORPORATED             EXECUTIVE

By: /s/ Jenna R. Nelson                    /s/ W. Michael Kipphut
    --------------------                   ------------------------

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