Document:

Filed by Bowne Pure Compliance

Exhibit 10.6

AMENDMENT TO EMPLOYMENT AGREEMENT

This AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”), dated as of September 5, 2008,
amends that certain employment agreement, dated May 12, 2006 (the “Employment Agreement”), between
CSS Industries, Inc., a Delaware corporation (“CSS”), and Christopher J. Munyan (“Executive”).

WHEREAS, CSS and the Executive previously entered into the Employment Agreement, which, among
other things, provides for the employment of the Executive by CSS in the position of President and
Chief Executive Officer;

WHEREAS, as set forth in Section 1 of the Employment Agreement, the original term of such
employment arrangement was three (3) years, expiring on June 30, 2009;

WHEREAS, CSS and the Executive desire to extend the term of the Executive’s employment with
CSS until June 30, 2011, unless terminated earlier by the Executive or by CSS at any time as
provided in the Employment Agreement, and to provide that the term of the Executive’s employment
with CSS shall renew each year for a three (3) year term unless either the Executive or CSS gives
notice of non-renewal at least ninety (90) days prior to July 1 of each year;

WHEREAS, as set forth in Section 4 of the Employment Agreement, the Executive is eligible to
receive certain severance benefits in the event that his employment with CSS is terminated by CSS
without cause prior to the end of his employment term set forth in the Employment Agreement;

WHEREAS, CSS and the Executive also desire to modify certain severance benefits, as set forth
in this Amendment, for which the Executive may be eligible in the event that his employment with
CSS is terminated by CSS without cause prior to the end of his then current employment term set
forth in Section 1 of the Employment Agreement;

WHEREAS, CSS and the Executive also desire to amend the Employment Agreement so that it
complies with the requirements of section 409A of the Internal Revenue Code of 1986, as amended;

WHEREAS, CSS and the Executive also desire to memorialize the terms and conditions of the
Executive’s continued employment by CSS under the terms of the Employment Agreement, as amended by
this Amendment;

 

 

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and
for other good and valuable consideration, the receipt and sufficiency of which is acknowledged,
the parties hereto, intending to be legally bound, agree as follows:

1. Amendment and Restatement of Section 1. The parties acknowledge and agree that
Section 1 of the Employment Agreement shall be deleted in its entirety and replaced with the
following:

1. Contract Term —  The term of your employment will extend until June 30,
2011, unless terminated earlier by you or by CSS at any time as provided herein. The term
of the Executive’s employment with CSS shall renew each year for a three (3) year term
unless either the Executive or CSS gives notice of non-renewal at least ninety (90) days
prior to July 1 of each year.

2. Amendment and Restatement of Section 4. The parties acknowledge and agree that
Section 4 of the Employment Agreement shall be deleted in its entirety and replaced with the
following:

4. Employment Status; Severance Pay — Your employment status with CSS will be
that of an employee at-will, and thus this employment status is subject to termination by
either you or CSS at any time. However, in the event that CSS terminates your employment
without cause at any time prior to the end of the Executive’s then current employment term
set forth in Section 1 hereof, and subject to your compliance with the terms and conditions
of this letter agreement, CSS will pay you an amount equal to the greater of (i) eighteen
(18) months of your then-current annual base salary (less applicable tax withholdings and
payroll deductions) or (ii) an amount equal to your then-current annual base salary (less
applicable tax withholdings and payroll deductions) for the period from the effective date
of such termination to the end of the Executive’s then current employment term set forth in
Section 1 hereof, such amount reduced by and to the extent of any earnings and other
compensation received by you or accrued for your benefit for your services (whether as an
employee or as an independent contractor) during the period commencing on the day following
the one year anniversary of your termination. In addition to the foregoing, in the event
that CSS terminates your employment without cause at any time prior to the end of the
Executive’s then current employment term set forth in Section 1 hereof, and subject to your
compliance with the terms and conditions of this letter agreement, CSS will make the
services of an “outplacement” firm available to you to assist you in finding new employment;
provided, however, that CSS’ expenditures to make such services available to you shall not
exceed the aggregate amount of $6,500. For purposes of this letter agreement, termination
“without cause” means termination other than termination resulting from or related to your
breach of any of your obligations under this letter agreement, your failure to comply with
any lawful directive of CSS’ Chairman of the Board of Directors or the Board of Directors of
CSS, your failure to comply with CSS’ Code of Ethics, your conviction of a felony or of any
moral turpitude crime, or your willful or intentional engagement in conduct injurious to CSS
or any of its affiliates.

The foregoing payment obligation, and the foregoing obligation to make “outplacement”
services available to you, is contingent upon (x) receipt by CSS of a valid and fully
effective release (in form and substance reasonably satisfactory to CSS) of all claims of
any nature which you might have at such time against CSS, its affiliates and their
respective officers, directors and agents, excepting therefrom only any payments due to you
from CSS pursuant to this paragraph, and (y) your resignation from all positions of any
nature which you may then hold with CSS and its affiliates. If you are eligible to receive
the foregoing payment, such amount will be paid to you in equal installments, with such
installments being paid on the then-applicable paydays for CSS executives,
commencing on or about the first such payday following the termination of your employment by
CSS without cause and your satisfaction of the conditions specified in the immediately
preceding sentence.

 

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In addition, if you are eligible to receive severance pay under the terms of this letter
agreement, and if you elect health care continuation coverage under the Consolidated Omnibus
Reconciliation Act (“COBRA”) following termination of your employment, CSS will pay for a
portion of the monthly COBRA premium, on the same basis as CSS pays for a portion of such
coverage for active employees, until the earlier of the date upon which (a) severance
payments are no longer paid to you hereunder, (b) you no longer qualify to receive COBRA
benefits, or (c) you elect to discontinue health care continuation coverage under COBRA. If
you elect to continue health care continuation coverage under COBRA, normal employee premium
deductions will be made from your severance pay.

Further, if you are eligible to receive the payment set forth in clause (ii) of the first
paragraph of this Section 4, you covenant and agree that commencing with the one year
anniversary of the date of your termination you will promptly advise CSS in writing on a
bi-weekly basis of any earnings and other compensation received by you or accrued for your
benefit for your services (whether as an employee or as an independent contractor) during
the period commencing on the day following the one year anniversary of your termination.

3. Addition of a New Section 10. The parties acknowledge and agree that a new Section
10 shall be added to the Employment Agreement, which new Section 10 shall read as follows:

10. Section 409A of the Code.

(a) Interpretation. This letter agreement shall be interpreted to avoid any
penalty sanctions under section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”). If any payment or benefit cannot be provided or made at the time specified herein
without incurring sanctions under section 409A, then such benefit or payment shall be
provided in full at the earliest time thereafter when such sanctions will not be imposed.
All payments to be made upon a termination of employment under this letter agreement may
only be made upon a ‘separation from service’ under section 409A of the Code. For purposes
of section 409A of the Code, each payment made under this letter agreement shall be treated
as a separate payment and the right to a series of installment payments shall be treated as
the right to a series of separate payments. In no event may you, directly or indirectly,
designate the calendar year of payment.

 

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(b) Payment Delay. To the maximum extent permitted under section 409A of the
Code, the cash severance payments payable under this letter agreement are intended to comply
with the ‘short-term deferral exception’ under Treas. Reg. §1.409A-1(b)(4), and any
remaining amount is intended to comply with the ‘separation pay exception’ under Treas. Reg.
§1.409A-1(b)(9)(iii); provided, however, any amount payable to the Executive during the
six-month period following your termination date that does not qualify within either of the
foregoing exceptions and is deemed as deferred compensation
subject to the requirements of section 409A of the Code, then such amount shall hereinafter
be referred to as the ‘Excess Amount.’ If at the time of your termination of employment,
you are a ‘specified employee’ (as defined in section 409A of the Code and determined in the
sole discretion of CSS (or any successor thereto) in accordance with CSS’s (or any successor
thereto) ‘specified employee’ determination policy), then CSS shall postpone the
commencement of the payment of the portion of the Excess Amount that is payable within the
six-month period following your ‘separation from service’ with CSS (or any successor
thereto) for six months following your ‘separation from service’ with CSS (or any successor
thereto). The delayed Excess Amount shall be paid in a lump sum to you within thirty (30)
days following the date that is six (6) months following the your ‘separation from service’
with CSS (or any successor thereto), and any amount payable to you after the expiration of
such six (6) month period under this letter agreement shall continue to be paid to you in
accordance with the terms of this letter agreement. If you die during such six-month period
and prior to the payment of the portion of the Excess Amount that is required to be delayed
on account of section 409A of the Code, such Excess Amount shall be paid to the personal
representative of your estate within sixty (60) days after your death, and any amounts not
delayed shall be paid to the personal representative of your estate in accordance with the
terms of this letter agreement.

(c) Reimbursements. All reimbursements provided under this letter agreement
shall be made or provided in accordance with the requirements of section 409A, including,
where applicable, the requirement that (i) any reimbursement is for expenses incurred during
your lifetime (or during a shorter period of time specified in this letter agreement), (ii)
the amount of expenses eligible for reimbursement during a calendar year may not affect the
expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of
an eligible expense will be made on or before the last day of the calendar year following
the year in which the expense is incurred, and (iv) the right to reimbursement is not
subject to liquidation or exchange for another benefit.

4. Miscellaneous. Except as expressly modified hereby, the Employment Agreement
remains in full force and effect. Upon the execution and delivery hereof, the Employment Agreement
shall thereupon be deemed to be amended as hereinabove set forth, and this Amendment and the
Employment Agreement shall henceforth be read, taken and construed as one and the same instrument.
This Amendment may be executed in counterparts, each of which shall be considered an original
instrument, but all of which shall be considered one and the same agreement, and shall become
binding when one or more counterparts have been signed by each of the parties hereto and delivered
to the other party.

 

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IN WITNESS WHEREOF, this Amendment has been executed by CSS and by the Executive as of the date
first above written.

	 	 	 	 	 
	 	
CSS INDUSTRIES, INC. (“CSS”)

 	 
	 	By:  	/s/ Jack Farber
 	 
	 	 	Jack Farber 	 
	 	 	Chairman of the Board of Directors 	 
	 	 	 
	 	
/s/ Christopher J. Munyan
 	 
	 	Christopher J. Munyan (“Executive”) 	 

 

5Filed by Bowne Pure Compliance

EXHIBIT 10.1

2008 SALES COMMISSION PLAN

(Revised October 12, 2008)

	1.0	 	PURPOSE

	 	1.1	 	The StarTek Sales Commission Plan (herein referred to as “the Plan”) is written
to describe the manner in which Participants will be eligible and paid for commission
compensation.

	2.0	 	OBJECTIVES

	 	2.1	 	The Plan is designed to support the following objective:
	 
	 	 	 	Generation of revenue at acceptable Customer Margin targets from new clients
	 
	 	2.2	 	Such programs must be defined by an SOW or an amendment to an SOW, be signed by
StarTek and a new client for StarTek during the Plan Period, and generate new revenue
for StarTek.

	3.0	 	PLAN EFFECTIVE DATE

	 	3.1	 	The Plan will be effective January 1, 2008 to December 31, 2008 or until
terminated by StarTek (the “Plan Period”). StarTek reserves the right, in its sole
discretion, to terminate the Plan at any time.

	4.0	 	ELIGIBILITY

	 	4.1	 	To participate in the Plan, one must be actively employed by StarTek in one of
the capacities listed below (“Participant”). Someone is a Participant only while he or
she continues to be so employed. :

	 	•	 	Director, National Sales
	 
	 	•	 	Senior Vice President, Sales.

 

 

 

	5.0	 	COMMISSION PAYMENTS

	 	5.1	 	The Plan rewards Participants by way of monthly commission payments for
building revenue at acceptable margins.
	 
	 	5.2	 	In the event two or more Participants are otherwise eligible for a commission
under this Plan for a particular program, the commission will be split among them in
the manner determined by the CEO, at the time the requisite SOW or amendment is signed.
	 
	 	5.3	 	Commissions are calculated monthly during the Plan Period based on the net
revenue recognized by StarTek for the preceding month for each qualifying SOW for which
the Participant is responsible (each being a ‘Qualifying SOW”). To be a Qualifying
SOW, such SOW must:

	 	•	 	Be signed during the Plan Period by both StarTek and a New Client for StarTek,
	 
	 	•	 	Be substantially the result of the Participant’s efforts, and
	 
	 	•	 	Be a source of new revenue for StarTek.

	 	 	 	The term “New Client” refers to someone (or its predecessor by merger or otherwise)
from whom StarTek has not, either directly or indirectly, earned revenue, as determined
by StarTek’s CEO in his discretion. Six months after the signing of the first
Qualifying SOW with a New Client, that client ceases to be a New Client. Any SOW
signed after this six month period with that client is not a qualifying SOW and
therefore no commissions are paid.
	 
	 	5.4	 	The commission earned for a Qualifying SOW for any given month will be
calculated by:

	 	 	 	 	 
	 

	 	Multiplying
	 	the net revenue recognized by StarTek for that month from that
Qualifying SOW (its “NetRev”)
	 
	 	 	 	 
	 

	 	Times
	 	the Participant’s applicable target incentive percentage
(the “TIP”) for that month for that Qualifying SOW.

The TIP will depend on the customer margin of that Qualifying SOW and the age of that
Qualifying SOW, according to the description in the “Target Incentive Eligibility” for
the Participant’s particular position. The starting month of the SOW shall be the
first month in which the SOW monthly billing exceeds a minimum threshold. For example,
if the customer margin of a particular Qualifying SOW is Y% and the starting month
occurred of that Qualifying SOW occurred:

	 	(a)	 	Within the preceding 12 months, then the TIP for that Qualifying
SOW for that month would be the percentage listed in the column labeled
“1st Year Following Closure of Qualifying SOW” for the row labeled
“X% — Z%” under the heading “Customer Margin % Per Qualifying SOW”;
	 
	 	(b)	 	Within the preceding 13 to 24 months, then the TIP for that
Qualifying SOW for that month would be the percentage listed in the column
labeled “2nd Year Following Closure of Qualifying SOW” for the same
row; and

	 	a.	 	Commissions for a Qualifying SOW cannot be earned
and will not be paid for more than 24 months.

 

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	 	 	 	NetRev for a Qualifying SOW will be the net revenue recognized by StarTek from its
client for that Qualifying SOW for the month in question, and will include all
necessary and proper deductions for discounts, rebates, returns, credits, penalties,
refunds, adjustments for disputed or compromised payments, and the like that are
allocable for that month to that Qualifying SOW (a “Qualifying Adjustment”).
	 
	 	5.5	 	If the net revenue recognized by StarTek for a particular Qualifying SOW during
a given month is not known in time to calculate a commission for payment during the
subsequent month, then StarTek will pay the Participant an advance against that
commission. The amount of the advance will be an estimate of the commission based on
accrued revenue for that Qualifying SOW for that month, and will be subject to true up
when the recognized revenue is known.
	 
	 	5.6	 	Should the revenue on which a commission is paid (an “earlier commission”)
become subject to a Qualifying Adjustment, StarTek will recalculate the earlier
commission. If the recalculated commission is greater than the earlier commission,
StarTek will pay the difference to the Participant at the time of the next, scheduled
commission payment. If the recalculated commission is less than the earlier
commission, then the Participant will refund the difference to StarTek. StarTek may
deduct such refund from commissions that otherwise become due to the Participant in the
future. For this purpose, StarTek may deduct up to one-half of the commissions
otherwise due to the Participant each month until the difference has been refunded in
full. This process may be repeated if a further Qualifying Adjustment occurs, such as
but not limited to, the situation in which StarTek subsequently recognizes revenue on a
Qualifying SOW that had previously not been recognized due to an earlier Qualifying
Adjustment.
	 
	 	5.7	 	Unless otherwise provided in this Section 5.7, a Participant can earn
commissions under the Plan only for those months in the Plan Period during which the
Participant is actively employed by StarTek in a capacity identified in Section 4.0
above.

	 	5.7.1	 	Someone who resigns or whose employment is terminated by StarTek for
cause cannot earn a commission, and no commission shall be due or payable, after
such resignation or termination.
	 
	 	5.7.2	 	If one’s employment with StarTek terminates while he or she is a
Participant in the Plan, then he or she can earn commissions under the Plan for
those months in the Plan Period occurring during the six months after such
termination, but only if:

	 	(a)	 	Such termination is due to his or her death or
disability, or
	 
	 	(b)	 	StarTek terminates his or her employment without cause,
and in connection with such termination, he or she signs StarTek’s waiver
and release agreement.

 

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	 	 	 	Otherwise, he or she cannot earn a commission, and no commission shall be due or
payable, after such termination.
	 
	 	5.7.3	 	Subject to the limitation in 5.7.1 above, if a Participant’s
employment with StarTek changes so that he or she, although continuing to be
employed by StarTek, is no longer actively employed by StarTek in a capacity
listed in Section 4 (referred to as a “Job Change”), then he or she can earn
commissions under the Plan for those months in the Plan Period occurring during
the six months after such Job Change.
	 
	 	5.7.4	 	Payment of an earned monthly commission is due in the month
following the month in which StarTek invoices its client for the revenue on which
such commission is based.
	 
	 	5.7.5	 	Except as otherwise expressly stated in this Section 5.7, someone
cannot earn a commission, and no commission shall become due or payable, after his
or her employment with StarTek ends.

	6.0.	 	ADDITIONAL PLAN INFORMATION

	 	6.1	 	Commission compensation under this Plan is fully taxable as earned income, and
subject to normal withholding guidelines and applicable taxes and practices.
	 
	 	6.2	 	Commission compensation under this Plan will be calculated by StarTek in
accordance with established Plan criteria and forwarded for approval to the Executive
Vice President & Chief Financial Officer and the President & Chief Executive Officer.
Either of these officers can designate any Senior Vice President who is not a
Participant in this Plan to act as an approver in their absence.
	 
	 	6.3	 	Any recoverable draws or advances of any kind given to a Participant outside of
this Plan will be deducted from the Participant’s first commission payment and will
continue to be deducted from future commission payments until such draws or advances
are repaid in full to StarTek.
	 
	 	6.4	 	If a dispute arises about who is responsible for a given contract, such
responsibility will be determined by the Chief Executive Officer in his sole
discretion. If it becomes necessary to split or share commission payments or if unique
sales opportunities arise, then determination and authorization for commissions, if
any, will be made by the Chief Financial Officer and the Chief Executive Officer.
	 
	 	6.5	 	If an extraordinary event contributes to securing a Qualifying SOW or
generating an unexpected amount of revenue recognized on a Qualifying SOW, and as a
result, the size of commission arising under this Plan would be uncommon or dramatic
when considering the contribution of the Participant to securing that Qualifying SOW or
generating such revenue, then such commission shall be subject to review and adjustment
by the Chief Financial Officer and the Chief Executive Officer. Such adjustment, if
applied, will be
based in large measure on the actual role of the involved Participant and/or the
unusual nature of the event causing the situation.

 

4

 

	 	6.6	 	If the invoiced revenue on which a commission is paid proves to be materially
different from the revenue StarTek actually recognizes, then at StarTek’s option:

	 	(a)	 	The relevant commissions shall be recalculated, based on the revenue
StarTek actually recognized,
	 
	 	(b)	 	The Participant will promptly refund to StarTek the difference
between the commissions previously paid and the recalculated commissions.

	 	 	 	The cause for such a material difference may be, by way of example and not limitation,
disputed payments, a client withholding payment, or a client being more than 120 days
late in payment. If StarTek subsequently receives, within the next 12 months, the
disputed, withheld, late, or other payment, then StarTek shall promptly restore to the
Participant the amount of the “clawed back” commission attributable to the subsequently
recovered revenue.
	 
	 	6.7	 	StarTek reserves the right, in its sole discretion, to modify, suspend, or
eliminate this Plan at any time with or without notice.
	 
	 	6.8	 	StarTek reserves the right to decide, in its absolute discretion, at any time
and from time to time:

	 	(a)	 	Whether to enter, renew, amend, extend, or terminate any contract,
proposed contract, and/or contract negotiation, with any client or prospective
client, as well as the terms and conditions under which it will do so, and
	 
	 	(b)	 	To whom it will assign responsibility for any such contract, proposed
contract, and/or contract negotiation, which assignment StarTek may change at any
time and from time to time, in its discretion.

	 	 	 	If either 6.9(a) or 6.9(b) above occurs, then such decision may affect the amount of a
Participant’s commissions under this Plan. 
	 
	 	6.9	 	Employment with StarTek is “at will” and may be terminated at any time by
either the Participant or StarTek with or without notice and for any or no reason,
unless the Participant has entered into a written employment agreement with StarTek
modifying the “at will” employment relationship. This Plan is not intended to alter
the “at will” employment relationship.
	 
	 	6.10	 	Neither this Plan nor participation in it shall:

	 	(a)	 	Affect the “at-will” nature of each Participant’s employment with
StarTek,
	 
	 	(b)	 	Provide any assurance of continued employment with StarTek or
participation in the Plan, nor
	 
	 	(c)	 	Provide any assurance that this Plan or another commission plan will
be offered in the future to any Participant.

 

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	 	6.11	 	StarTek’s SVP-HR shall be responsible for the administration of this Plan and
StarTek’s CEO shall have sole authority and discretion to interpret its provisions and
applicability.

	7.0	 	RELATED FORM

	 	7.1	 	Appendix A: Target Incentive Eligibility per Position

	 	 	 	 	 	 	 
	APPROVALS:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Susan L. Morse

	 	 	 	 	 	 
	Senior Vice President, Human Resources
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

David G. Durham

	 	 
	 	 

A. Laurence Jones
	 	 
	Chief Financial Officer

	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 

Participant

	 	 
	 	 

Date
	 	 

 

6

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