Document:

exv10w25

 

Exhibit 10.25

June 6, 2006

Mr. Patrick Hayes

8501 South Forrest Street

Highlands Ranch, CO 80126

Dear Pat:

It is my pleasure to offer you a promotion into the position of Executive Vice President, Chief
Operations Officer with StarTek, Inc. The position will report directly to me, Steve Butler,
President and Chief Executive Officer of StarTek, Inc.

Base Compensation

Your base compensation will be $255,000 per year, paid semi-monthly, and will retroactively be
effective as of May 1, 2006. You will be eligible for future annual salary increases based upon
performance and goal achievements.

Variable Compensation Eligibility

You are eligible to continue participation in the StarTek Leadership Incentive Compensation Plan.
Your targeted incentive eligibility is increased to 50% of your actual base earnings effective on
May 1, 2006. Your bonus incentive is 100% based on achievement toward corporate-wide financial
targets.

Severance

StarTek will offer you twelve (12) months of severance in the event of termination of employment
from StarTek, Inc. other than for “cause.” “Cause” shall require a reasonable good faith
determination by StarTek, Inc. and is defined as (1) an act or acts constituting a felony; (2) an
act or acts constituting dishonesty or disloyalty with respect to StarTek; (3) an act or acts
constituting fraud; and / or (4) an act or acts that materially adversely affect StarTek’s business
or reputation.

 

 

Other Benefits

StarTek will continue to offer you Executive Life, Long-Term Disability, and Accidental Death and
Dismemberment insurance. Additionally, your PTO accrual will remain unchanged.

Employment at Will

Your employment by StarTek, Inc. is “at will” meaning that you are free to terminate your
employment with StarTek, Inc. at any time for any reason and that StarTek, Inc. is also free to
terminate your employment at any time for any reason.

Pat, I am so pleased to have your on-going exceptional service level and commitment to StarTek and
to see you move into a new phase in your career development.

Sincerely,

Steve Butler

President and Chief Executive Officer

I, Pat Hayes, accept this offer with StarTek, Inc.

Signed /s/ Patrick M. Hayes          

Date June 12, 2006exv10w26

 

Exhibit 10.26

STARTEK, INC.

OPTION AGREEMENT

Date of Grant: _________________

     THIS OPTION AGREEMENT (this “Agreement”), dated as of the date of grant first stated
above (the “Date of Grant”), is delivered by StarTek, Inc., a Delaware corporation (the
“Company”) to ______, the (“Participant”), who is an employee of the Company or one of
its Designated Subsidiaries.

Recitals

     A. The Board of Directors of the Company (the “Board”) has
adopted, with subsequent stockholder approval, the StarTek, Inc. Stock Option Plan (the
“Plan”).

     B. The Plan provides for the granting of stock options (“ISO’s”) and nonqualified stock
options (“NSO’s) by a committee to be appointed by the Board (the “Committee”) to key
employees of the Company or any subsidiary of the Company to purchase, or to exercise certain
rights with respect to, shares of the common stock of the Company, par value $0.01 per share, in
accordance with the terms and provisions thereof; and

     C. The Committee considers the Participant to be a person who is eligible for a
grant of stock options under the Plan, and has determined that it would be in the best interest of
the Company to grant to Participant the stock options set forth herein, subject to the terms and
conditions hereof.

Agreement

     NOW, THEREFORE, the parties hereby agree as follows:

1. Definitions. Except as expressly indicated herein, defined terms used this Agreement shall
have the meanings set forth in the Plan.

2. Grant of Option. Subject to the terms and conditions hereinafter set forth, the Company, with
the approval and at the direction of the Committee, hereby grants to the Participant, as of the
Date of Grant, an option to purchase up to ______shares of Common Stock at a price of $______
per share, the Fair Market Value of the Common Stock as of the Date of Grant. Such option is
hereinafter referred to as the “Option” and the shares of Common Stock purchasable upon
exercise of the Option are hereinafter sometimes referred to as the “Option Shares”. The
Option is intended by the parties hereto to be, and shall be treated as an ISO.

3. Vesting and Termination of the Option

     (a). Vesting of Option. Subject to the provisions of the Plan which provide for
acceleration of exercisability of the Option in certain circumstances as provided therein and such
further limitations as are

 

 

provided in the Plan and this Agreement, the Option shall vest and be exercisable as to the Option
Shares (subject to adjustment as provided in paragraph 10 of the Plan) as follows:

	 	 	 	 	 
	On the first anniversary
	 	 	 	 
	of the Date of Grant and
	 	 	 	 
	Thereafter:

	 	25%

	 

	 	______Option Shares

	 
	 	 	 	 
	Monthly vesting for the
	 	 	 	 
	following 36 months after
	 	 	 	 
	the first anniversary
	 	 	 	 
	Thereafter:

	 	2.0833% per month

	 

	 	_________Option Shares

Except as provided below, upon Termination of Employment for any reason, a Participant shall
forfeit any Options that are not vested on the date of Termination of Employment. Notwithstanding
the vesting schedule contained herein, upon Termination of Employment of the Participant for Cause,
all Options granted to the participant will be cancelled and forfeited by the Participant upon
delivery to him of notice of such Termination of Employment.

        (b) Termination of Option. The Option granted under this Agreement will expire as
of the earliest of:

	 	(i)	 	the date of which it is forfeited under the
provisions of paragraph 3(a) hereof;
	 
	 	(ii)	 	10 years from the Option Date;
	 
	 	(iii)	 	three months after the Participant’s Termination of
Employment for any reason other than death; or
six months after the Participant’s death.

4. Exercise of Options.

        (a) Notice and Payment. To exercise an Option in whole or
in part, a Participant (or, after his death, his executor or administrator) must give written
notice to the Committee, stating the number of shares as to which he intends to exercise the Option
together with payment of the Option Price. The Option Price (and any required withholding) may be
paid (i) in cash, (ii) in shares of Common Stock having an aggregate Fair Market Value, as
determined on the date of delivery, equal to the Option Price, or (iii) by delivery of irrevocable
instructions to a broker to promptly deliver to the Company the amount of sale or loan proceeds
necessary to pay for all Common stock acquired through such exercise and any tax withholding
obligations resulting from such exercise.

        (b) Delivery of Certificate. On the exercise date specified in the Participant’s
notice or as soon thereafter as is practicable, the Company shall cause to be delivered to the
Participant, a certificate or

 

 

certificates for the Option Shares then being purchased (out of theretofore unissued Common Stock
or reacquired Common Stock, as the Company may elect) upon full payment for such Option Shares.
The obligation of the Company to deliver Common Stock shall, however, be subject to the condition
that if at any time the Committee shall determine in its discretion that the listing, registration
or qualification of the Option or the Option Shares upon any securities exchange or under any state
or federal law, or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition of, or in connection with, the Option or the issuance or purchase of
Common Stock thereunder, the Option may not be exercised in whole or in part unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Committee.

        (c) Failure to Pay. If the Participant fails to pay for any of the Option Shares
specified in such notice and any required withholding tax or fails to accept delivery of the Option
Shares, the Participant’s right to purchase such Option Shares may be terminated by the Company.
The date specified in the participant’s notice as the date of exercise shall be deemed the date of
exercise of the Option, provided that payment in full for the Option Shares to be purchased upon
such exercise and any required tax withholding shall have been received by such date.

5. Non-Transferability to Option. During the Participant’s lifetime, the Option shall be
exercisable only by the Participant or any guardian or legal representative of the Participant, and
the Option shall not be assignable or transferable by the Participant except, in case of the death
of the Participant, by will or the laws of intestate succession. In addition, the Option shall not
be subject to attachment, execution or other similar process. In the event of (i) any attempt by
the Participant to alienate, assign, pledge, hypothecate or otherwise dispose of the Option, except
as provided for herein, or (ii) the levy of any attachment, execution or similar process upon the
rights or interest hereby conferred, the Company may terminate the Option by notice to the
Participant and it shall thereupon become null and void.

6. Transferability of Option Shares. The Participant hereby agrees that

the Option Shares acquired upon exercise of the Option shall be acquired for the Participant’s own
account for investment purposes only and not with a view to any distribution or public or public
offering thereof within the meaning of the Act, or other applicable securities laws. If the Board
so determines, any stock certificates issued upon exercise of the Option shall bear a legend to the
effect that the Option Shares have been so acquired. The Company shall not be required to bear any
expenses of compliance with the Act, other applicable securities laws, or the rules and regulations
of any national securities exchange or other regulatory authority in connection with the
registration, qualification or transfer, as the case may be, of the Option or any Options Shares
acquired upon exercise thereof. The foregoing restrictions on the transfer of Options Shares shall
not apply if (i) the Company shall have been furnished with a satisfactory opinion of counsel to
the effect that such transfer will be in compliance with the Act and all other applicable
securities laws, or (ii) the Option Shares shall have been duly registered in compliance with the
Act and all other applicable securities laws.

     The Participant further agrees that, upon any sale of Option Shares within two (2) years from
the Date of Grant of the Option, or within one year after transfer of such Option Shares to the
Participant’s ownership, and then the Participant shall immediately notify the Company in writing
of such disposition and the amount realized by the Participant upon such disposition.

7. Employment Not Affected. Neither the granting of the Option nor its exercise shall be construed
as granting to the Participant any right with respect to continuance of employment with the Company
or any

 

 

Subsidiary. Except as may otherwise be limited by a written agreement between the Company or any
Subsidiary and the Participant, the right of the Company or any Subsidiary to terminate at will the
Participant’s employment with it at any time (whether by dismissal, discharge, retirement or
otherwise) is specifically reserved by the Company or Subsidiary (whichever the case may be), and
acknowledged by the Participant.

8. Amendment of Option. The Option may be amended by the Board or the Committee at any time (i)
if the board or the Committee determines, in its sole discretion, that amendment is necessary or
advisable in the light of any addition to or change in the Code or in the regulations issued
thereunder, or any federal or state securities law or other law or regulation, which change occurs
after the Date of Grant and by its terms applies to the Option or (ii) other than in the
circumstances described in clause (i), with the consent of the Participant.

9. Notice. Any notice to the Company provided for in this Agreement shall be addressed to the
Company in care of its Secretary at its executive offices at 44 Cook Street, 4th Floor,
Denver, Colorado 80206, and any notice to the Participant shall be addressed to the Participant at
the current address shown on the payroll records of the Company. Any notice shall be deemed to be
duly given if and when properly addressed and posted by registered or certified mail, postage
prepaid.

10. Incorporation of Plan by Reference. The Option is granted pursuant to the terms of the Plan,
the terms of which are incorporated herein by reference, and the Option shall in all respects be
interpreted in accordance with and subject to the terms and provisions of the Plan. The Committee
shall interpret and construe the Plan and this Agreement, and its interpretations and
determinations shall be conclusive and binding on the parties hereto and any other person claiming
an interest hereunder, with respect to any issue arising hereunder or thereunder. If any terms of
this Agreement conflict with the terms of the Plan, the terms of the Plan shall control.

11. Governing Law. The validity, construction, interpretation and effect of this Agreement
shall exclusively be governed by and determined in accordance with the laws of the State of
Delaware, except to the extent preempted by federal law, which shall to the extent of such
preemptive govern.

     IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Date of Grant
specified above.

	 	 	 
	ATTEST:

	 	STARTEK, INC., a Delaware corporation
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	Shelby Test-Peralta, V.P. Human Resources

	 	Steven Butler, President and Chief
Executive Officer
	 
	 	 
	 
	 	 
	 

	 	ACCEPTED AND AGREED TO:
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Participant

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