EXECUTIVE EMPLOYMENT AGREEMENT
Exhibit 10.1
This Executive Employment Agreement (“Agreement”) is by and between TeleTech Holdings, Inc.,
including its subsidiaries, their successors and assigns, their directors, officers, employees and
agents (the “Company” or “TeleTech”) and Xxxxxx Xxxxxxx (“Employee”), and shall be effective as of
the “Start Date” (as defined below).
1. Appointment
a. TeleTech hereby employs Employee as Executive Vice President and Chief Sales Officer
reporting to the Chief Executive Officer and Employee hereby accepts such employment with TeleTech
to begin on March 8, 2010 (“Start Date”).
b. Employee shall devote his full-time and best efforts to the performance of all duties as
shall be assigned to Employee from time to time by TeleTech. Unless otherwise specifically
authorized in writing by TeleTech, Employee shall not engage in any other business activity, or
otherwise be gainfully employed. This shall not preclude Employee from serving on Boards of
Directors with the Company’s approval.
c. Employee acknowledges that, as part of Employee’s employment duties hereunder, Employee may
be required to perform services for, and serve as an officer and/or director of, subsidiaries and
affiliates of TeleTech, on behalf of and as requested by TeleTech, and Employee agrees to perform
such duties. Employee shall render such services as are necessary and desirable to protect and
advance the best interests of the Company, acting, in all instances, in accordance with TeleTech’s
Code of Conduct and policies.
2. Compensation
a. Salary and Salary Review. Employee’s base salary shall be $300,000 per year, payable in
equal installments in accordance with TeleTech’s standard payroll practice, less legally required
deductions and withholdings. TeleTech may, in its sole discretion, increase, or decrease in a
non-material way, Employee’s base salary, as and when TeleTech deems appropriate.
b. Annual Incentive. Employee will be eligible to participate in the then current Management
Incentive Plan (“MIP”) with eligibility to earn an annual bonus targeted at 100% of Employee’s base
salary. The determination of eligibility for, the amount and the payment of any such annual bonus
are subject to the terms and conditions of the applicable Management Incentive Plan.
c. Sign-on Bonus. Employee shall receive a one-time sign-on bonus of $60,000, less all
deductions and required withholdings, to be issued with Employee’s first regularly-scheduled
paycheck. If Employee voluntarily leaves the Company or is terminated for “Cause” (as defined
below) within 12 months from Employee’s Start Date, this sum will be repayable to the Company
subject to reduction on a pro-rata basis for each month worked during such 12-month period.
“Cause” as used in this Agreement shall be determined in TeleTech’s sole and absolute
discretion and shall include any of the following acts by Employee: material violation of
TeleTech’s Code of Conduct or any TeleTech policy, procedure, guideline or agreement; theft,
embezzlement, misappropriation of funds, or misuse of Employer property or time; willful dishonesty
causing harm to the Employer; conviction of or a plea of guilty or nolo contendre to any felony, or
to any misdemeanor involving dishonesty, fraud, abuse of trust, breach of fiduciary duty, physical
or emotional harm to any person or moral turpitude or use, possession, or distribution of
controlled substances; unauthorized use of trade secrets or confidential information (or the
Employer’s reasonable belief that the Employee has done so or has attempted to do so); repeated
dishonesty or misrepresentation involving the Employer or any Affiliated Entity; violation of the
Employer’s Substance Abuse Policy; illegal gambling on the Employer’s or Affiliated Entity’s
premises; making any statements, whether written or oral, that disparage or defame the Employer or
any Affiliated Entity; and intentionally falsifying any document or making any false or misleading
statement related to the Employee’s employment by the Employer.
d. Relocation. Company will reimburse Employee reasonable relocation expenses in accordance
with Company’s relocation program up to $40,000 (plus any applicable grossed up tax payments) for
Employee’s move to the Denver area to be used within a 12-month period from the Employee’s Start
Date. This relocation allowance may be used for reasonable relocation expenses related to
Employee’s move as set forth in the relocation program. If Employee voluntarily leaves the Company
or is terminated for Cause within 12 months from Employee’s Start Date, the amount received will be
repayable to the Company subject to reduction on a pro-rata basis for each month worked during such
12-month period.
3. Restricted Stock Units
Subject to the prior approval of the Compensation Committee of the Board, the Company shall
grant Employee 50,000 restricted stock units (“RSUs”). The RSUs shall vest in four equal
installments beginning on the first anniversary of the date of such grant provided that Employee
remains employed by the Company on each such vesting date. The terms and conditions of the RSUs
shall be more fully set forth in a Restricted Stock Unit Agreement, in substantially the form
attached hereto as Exhibit A.
4. Fringe benefits
a. Medical, Vision, Dental and Long-Term Disability Insurance. Employee and his dependents
shall be eligible for coverage under the group medical, vision, and dental insurance plans made
available from time to time to TeleTech’s executive and management employees, beginning on the
first of the month after 30 days from the Start Date. TeleTech shall pay the premiums during
Employee’s employment under the group medical, vision, dental, and Long-Term Disability insurance
plans pursuant to the same premium-payment formula applicable to TeleTech’s other senior
executives.
b. Life Insurance. Subject to Employee’s satisfactory completion of a standard medical
examination, Employee shall be eligible for, and TeleTech shall provide Employee with a $4,000,000
term life insurance policy. TeleTech shall pay all premiums relating to such a policy up to
$10,000 per year. TeleTech, on behalf of Employee, will maintain such insurance policy so long as
Employee is employed by TeleTech. Employee shall be the owner of such policy and shall have the
right to designate the beneficiary or beneficiaries thereof. Upon termination of Employee’s
employment for any reason, Employee shall have the right to continue and maintain such policy by
his payment of future premiums due under the policy.
c. Miscellaneous benefits. Employee shall receive fringe benefits generally applicable to the
other TeleTech senior executives that are from time to time in effect, such as the Company’s 401(k)
and Deferred Compensation Plans.
5. Paid Leave
Employee shall receive 24 days of accrued Paid Time Off (PTO) for Employee’s first full year
of employment pursuant to the then current PTO Policy (or any other vacation/sick policy then in
effect). Employee will also be paid for time off for certain holidays as set forth in Company’s
then current Company Holiday Policy.
6. Relationship Between this Agreement and Other TeleTech Agreements
In the event of any conflict between any term of this Agreement and any TeleTech contract,
policy, procedure, guideline or other publication, the terms of this Agreement shall control.
7. Termination
a. Termination by Mutual Agreement. The parties may terminate this Agreement and/or the
employment relationship by mutual written agreement.
b. Termination by TeleTech Without Cause. Upon written notice and at the Company’s sole
discretion, the Company may terminate Employee’s employment without “Cause” (as defined in
paragraph 2(c) above). Further, and solely with respect to the provisions of this paragraph 7(b),
the phrase “without Cause” shall also include: (i) any change in Employee’s reporting structure
such that he does not report directly to the Company’s Chief Executive Officer; or (ii) any
material decrease in Employee’s base salary, as described in paragraph 2(a) except if such material
decrease is effected in connection with a reduction in compensation that is applicable generally to
other Executive Vice Presidents of the Company; or (iii) any material negative change in Employee’s
title below that of Executive Vice President and Chief Sales Officer; or (iv) any required
relocation of Employee’s principal workplace to a location more than 50 miles outside of the Denver
Metropolitan Area; provided, however, that if Employee fails to notify the Executive Vice President
of Global Human Capital of the Company in writing that the Company has terminated his employment
without Cause within 30 calendar days after the occurrence of any of the foregoing events (i) -
(iv), Employee shall forever forfeit, release and waive his right to receive any severance
compensation or severance benefits in accordance with the provisions of this paragraph 7(b).
Upon a termination without Cause under this paragraph 7(b), if Employee executes a separation
agreement and legal release releasing all claims, except for any claims under the Colorado Wage
Claim Act, in a form satisfactory to TeleTech and Employee continues to comply with all terms of
such separation agreement and any other agreement signed by Employee, TeleTech shall pay Employee
as severance pay the lump sum (subject to the provisions of section 11, below) of 12 months of
Employee’s then-current base salary, less legally required deductions and withholdings. All other
terms and conditions of TeleTech’s Severance Pay Plan remain in full force and effect regarding the
payment of severance pay.
Upon a termination without Cause under this paragraph 7(b), if TeleTech pays Employee all
salary and compensation earned as of the termination date, and provides Employee severance pay and
severance benefits in the amount and on the terms specified in this paragraph 7(b), TeleTech’s acts
in doing so shall be in complete accord and satisfaction of any claim that Employee has or may at
any time have for compensation or payments of any kind from TeleTech arising from or relating in
whole or part to Employee’s employment with TeleTech and/or this Agreement. If the separation
agreement and legal release is not signed within forty five (45) days from
when the agreement is presented to Employee, then Employee waives his right to receive any
severance pay or severance benefits, even if Employee were to successfully litigate any claim
against Company. Employee is not entitled to severance pay or severance benefits if Employee
terminates his own employment with Company except as set forth in this paragraph 7(b).
c. Termination by TeleTech for Cause. TeleTech may terminate this Agreement effective
immediately for Cause, upon notice to Employee, with TeleTech’s only obligation being the payment
of any salary and compensation earned as of the date of termination, and any continuing obligations
under Company pension or benefit plans then in effect, and without liability for severance
compensation of any kind.
d. Termination Upon Employee’s Death. This Agreement shall terminate immediately upon
Employee’s death. Thereafter, TeleTech shall pay to Employee’s estate all compensation fully
earned, and benefits fully vested as of the last date of Employee’s continuous, full-time active
employment with TeleTech. TeleTech shall not be required to pay any form of severance, severance
benefits, or other compensation concerning or on account of Employee’s employment with TeleTech or
the termination thereof.
e. Termination Following Disability. During the first ninety (90) calendar days after a
mental or physical condition that renders Employee unable to perform the essential functions of his
position with reasonable accommodation (the “Initial Disability Period”), Employee shall continue
to receive his base salary as set forth in paragraph 2(a). Thereafter, if Employee qualifies for
benefits under TeleTech’s long term disability insurance plan (the “LTD Plan”), then he shall
remain on leave for as long as he continues to qualify for such benefits, up to a maximum of 180
consecutive days (the “Long Term Leave Period”). The Long Term Leave Period shall begin on the
first day following the end of the Initial Disability Period. During the Long Term Leave Period,
Employee shall be entitled to any benefits to which the LTD Plan entitles him, but no additional
compensation from TeleTech in the form of salary, performance or MIP bonus, new stock option
grants, allowances or otherwise. Consistent with applicable law, if at the end of the Long Term
Leave Period Employee remains unable to perform the essential functions of his position, then
TeleTech may terminate this Agreement and/or Employee’s employment. In the event that TeleTech
terminates this Agreement or Employee’s employment under this subparagraph 7(e), TeleTech’s payment
obligation to Employee shall be limited to all compensation fully earned, and benefits fully vested
as of the last date of Employee’s continuous, full-time active employment with TeleTech. Except as
specifically set forth above in this subparagraph 7(e), TeleTech shall not be required to pay any
form of severance, severance benefits, or other compensation concerning or on account of Employee’
employment with TeleTech or the termination thereof. The compensation and benefits under this
paragraph are in addition to any other compensation and benefits Employee may receive under any
disability or other insurance policy.
8. Successors and Assigns
TeleTech, its successors and assigns may in their sole discretion assign this Agreement to any
person or entity, with or without Employee’s consent. This
Agreement thereafter fully shall bind,
and inure to the benefit of TeleTech’s successors or assigns and in the event of a sale of all or a
portion of TeleTech’s stock or assets, this Agreement shall continue in full force and effect.
Employee shall not assign either this Agreement or any right or obligation arising hereunder.
9. Dispute Resolution
Employee and TeleTech agree that in the event of any controversy or claim arising out of or
relating to Employee’s employment with and/or separation from TeleTech, they shall negotiate in
good faith to resolve the controversy or claim privately, amicably and confidentially. Each party
may consult with counsel in connection with such negotiations. All controversies and claims
arising from or relating to Employee’s employment with TeleTech and/or the termination of that
employment that cannot be resolved by good-faith negotiations shall be resolved only by final and
binding arbitration. Employee agrees to execute, simultaneously with the execution of this
Agreement, the Company’s current Arbitration Agreement.
10. Non-Disclosure and Non-Competition
Employee agrees to execute, simultaneously with the execution of this Agreement, the Company’s
current Agreement to Protect Confidential Information, Assign Inventions and Prevent Unfair
Competition and Unfair Solicitation, which, among other things, restricts Employee from engaging in
any activity in competition with the Company for a one-year period following Employee’s termination
for any reason.
11. Section 409A of the Internal Revenue Code
a. This Agreement shall be interpreted and administered in a manner so that any amount or
benefit payable hereunder shall be paid or provided in a manner that is either exempt from, or
complies with, the requirements of Section 409A of the Code and the Internal Revenue Service
guidance and Treasury Regulations thereunder (“Section 409A”), and Employee and the Company agree
to amend the Agreement, or take such other actions as Employee and the Company deem necessary or
appropriate, to comply with such intent.
b. Employee will be considered to have terminated employment with the Company only if
Employee’s termination of employment constitutes a “separation from service,” as defined in
Treasury Regulation Section 1.409A-1(h).
c. Any severance benefits payable to Employee upon Employee’s termination of employment shall
be paid shall be paid (or, in the case of installment payments, shall commence to be paid) on the
date that the Company determines within sixty (60) days following the date of Employee’s
“separation from service.” Any installment severance payments made on separate payroll dates shall
be treated as a
series of separate payments for purposes of Section 409A, and, to the greatest extent
applicable, any such installment payments shall be construed to be exempt payments pursuant to
Treasury Regulation Section 1.409A-1(b)(9)(iii)
d. Notwithstanding Section 2 above, if Employee is entitled to receive payment of any
non-exempt “nonqualified deferred compensation” within the meaning of Section 409A upon Employee’s
“separation from service,” and Employee is a “specified employee” on the date of Employee’s
“separation from service” (as determined under Treasury Regulation Section 1.409A-1(i)), such
payment shall be delayed in order to avoid a prohibited distribution under Section
409A(a)(2)(B)(i), and any such payment shall be paid to Employee in a lump sum during the thirty
(30) day period commencing on the earlier of (a) the expiration of the six-month period measured
from the date of Employee’s “separation from service,” or (b) Employee’s death. To the greatest
extent permitted under Section 409A, any separate payment or benefit under the Agreement will not
be deemed to constitute “nonqualified deferred compensation” subject to Section 409A and the
six-month delay requirement to the extent provided in the exceptions in Treasury Regulation Section
1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision of Section
409A.
12. Miscellaneous
a. Governing Law. This Agreement, and all other disputes or issues arising from or relating
in any way to TeleTech’s relationship with Employee, shall be governed by the internal laws of the
State of Colorado, irrespective of the choice of law rules of any jurisdiction.
b. Severability. If any court of competent jurisdiction declares any provision of this
Agreement invalid or unenforceable, the remainder of the Agreement shall remain fully enforceable.
To the extent that any court concludes that any provision of this Agreement is void or voidable,
the court shall reform such provision(s) to render the provision(s) enforceable, but only to the
extent absolutely necessary to render the provision(s) enforceable.
c. Modification of Agreement. This Agreement or any other term or condition of employment
shall not be modified by word or deed, except in a writing signed by Employee and Executive Vice
President of Human Capital.
d. Waiver. No provision of this Agreement shall be deemed waived, nor shall there be an
estoppel against the enforcement of any such provision, except by a writing signed by the party
charged with the waiver or estoppel. No waiver shall be deemed continuing unless specifically
stated therein, and the written waiver shall operate only as to the specific term or condition
waived, and not for the future or as to any act other than that specifically waived.
e. Construction. Whenever applicable, masculine and neutral pronouns shall equally apply to
the feminine genders; the singular shall include the plural and the plural shall include the
singular. The parties have reviewed and
understand this Agreement, and each has had a full opportunity to negotiate the agreement’s
terms and to consult with counsel of their own choosing. Therefore, the parties expressly waive
all applicable common law and statutory rules of construction
that any provision of this Agreement
should be construed against the agreement’s drafter, and agree that this Agreement and all
amendments thereto shall be construed as a whole, according to the fair meaning of the language
used.
f. Employee’s Representations and Warranties. The Employee represents and warrants that the
Employee is not a party to any other employment, non-competition or other agreement or restriction
which could interfere with the Employee’s employment with the Company or the Employee’s or the
Company’s rights and obligations hereunder, and that the Employee’s acceptance of employment with
the Company and the performance of the Employee’s duties hereunder will not breach the provisions
of any contract, agreement, or understanding to which the Employee is a party or any duty owed by
the Employee to any other person.
g. Counterparts and Telecopies. This Agreement may be executed in counterparts, or by copies
transmitted by telecopier, which counterparts and/or facsimile transmissions shall have the same
force and effect as had the contract been executed in person and in original form.
Employee acknowledges and agrees: that he understands this Agreement; that he enters into it
freely, knowingly, and mindful of the fact that it creates important legal obligations and affects
his legal rights; and that he understands the need to consult concerning this Agreement with legal
counsel of his own choosing, and has had a full and fair opportunity to do so.
[SIGNATURES FOLLOW]
| Employee | TeleTech Holdings, Inc. | ||||||
By:
|
/s/ XXXXXX XXXXXXX | By: | /s/ XXXX XXXXX | ||||
| Xxxxxx Xxxxxxx | Xxxx Xxxxx Executive VP, Global Human Capital |
||||||
TELETECH HOLDINGS, INC.
RESTRICTED STOCK UNIT AGREEMENT
(Section 16 Officer)
RESTRICTED STOCK UNIT AGREEMENT
(Section 16 Officer)
THIS RESTRICTED STOCK UNIT AGREEMENT (the “Agreement”) is entered into between
TELETECH HOLDINGS, INC., a Delaware corporation (“TeleTech”), and
(“Grantee”), as of (the “Grant Date”). In consideration of the
mutual promises and covenants made herein, the parties hereby agree as follows:
1. Grant of RSUs. Subject to the terms and conditions of the TeleTech Holdings, Inc.
1999 Stock Option Plan, as amended and restated (the “Plan”), a copy of which is attached
hereto and incorporated herein by this reference, TeleTech grants to Grantee
RSUs (the “Award”).
2. Rights Upon Certain Events.
(a) Rights Upon Termination of Service. If Grantee incurs a “Termination of Service”
(as defined below) for any reason other than (i) for “Cause” (as defined herein), (ii) Grantee’s
death, or (iii) Grantee’s mental, physical or emotional disability or condition (a
“Disability”), Grantee shall retain rights of ownership to any then vested portion of the
Award. Any unvested portion of the Award shall be immediately cancelled.
(b) Rights Upon Termination of Service For Cause. If Grantee incurs a Termination of
Service for Cause, the RSUs shall be immediately cancelled.
(c) Rights Upon Grantee’s Death or Disability. If Grantee incurs a Termination of
Service as a result of Grantee’s death or disability, Grantee shall retain any then vested portion
of the Award. Any unvested portion of the Award shall be immediately cancelled.
3. Vesting.
(a) The RSU Award shall vest in four installments beginning on , as delineated
in the table below:
| Vesting Schedule | ||
| Cumulative | ||
| Vesting Date | Percentage | |
| 25% | ||
| 25% | ||
| 25% | ||
| 25% | ||
(b) Grantee must not have incurred a Termination of Service before any Vesting Date in order
to vest in the portion of the RSUs that vest on such Vesting Date. No portion of the RSUs shall
vest between Vesting Dates; if Grantee incurs a Termination of Service for any reason, then any
portion of the RSUs that is scheduled to vest on any Vesting Date after the date Grantee’s
Termination of Service is terminated automatically shall be forfeited as of the Termination of
Service.
3A. Vesting Following a Change in Control.
(a) Accelerated Vesting. Notwithstanding the vesting schedule contained in
Section 3, upon a “Change in Control” (as hereinafter defined), any unvested Performance Vesting
RSUs and Time Vesting RSUs that would otherwise vest on or after the effective date of the Change
in Control shall be accelerated and become 100% vested on the effective date of the Change in
Control; provided, however, that for purposes of a Change in Control pursuant to Section 3(b)(i)
hereof, the unvested Performance Vesting RSUs and Time Vesting RSUs shall be deemed to have vested
immediately prior to a Change in Control transaction described in Section 3(b)(i) hereof in order
to allow such Performance Vesting RSUs and Time Vesting RSUs to participate in such Change in
Control transaction.
(b) Definition of “Change in Control”. For purposes of this Agreement, “Change in
Control” means the occurrence of any one of the following events:
(i) any consolidation, merger or other similar transaction (A) involving TeleTech, if
TeleTech is not the continuing or surviving corporation, or (B) which contemplates that all
or substantially all of the business and/or assets of TeleTech will be controlled by another
corporation;
(ii) any sale, lease, exchange or transfer (in one transaction or series of related
transactions) of all or substantially all of the assets of TeleTech (a
“Disposition”); provided, however, that the foregoing shall not
apply to any Disposition to a corporation with respect to which, following such Disposition,
more than 51% of the combined voting power of the then outstanding voting securities of such
corporation is then beneficially owned, directly or indirectly, by all or substantially all
of the individuals and entities who were the beneficial owners of at least 51% of the then
outstanding Common Stock and/or other voting securities of TeleTech immediately prior to
such Disposition, in substantially the same proportion as their ownership immediately prior
to such Disposition;
(iii) approval by the stockholders of TeleTech of any plan or proposal for the
liquidation or dissolution of TeleTech, unless such plan or proposal is abandoned within 60
days following such approval;
(iv) the acquisition by any “person” (as such term is used in Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended), or two or more persons acting
in concert, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Securities Exchange Act of 1934, as amended) of 51% or more of the outstanding shares of
voting stock of TeleTech; provided, however, that for purposes of the
foregoing, “person” excludes Xxxxxxx X. Xxxxxxx and his affiliates; provided,
further that the foregoing shall exclude any such acquisition (A) by any person made
directly from TeleTech, (B) made by TeleTech or any Subsidiary, or (C) made by an employee
benefit plan (or related trust) sponsored or maintained by TeleTech or any Subsidiary; or
(v) if, during any period of 15 consecutive calendar months commencing at any time on
or after the Grant Date, those individuals (the “Continuing Directors”) who either
(A) were directors of TeleTech on the first day of each such 15-month period, or
(B) subsequently became directors of TeleTech and whose actual election or initial
nomination for election subsequent to that date was approved by a majority of the Continuing
Directors then on the board of directors of TeleTech, cease to constitute a majority of the
board of directors of TeleTech.
(c) Other Definitions. The following terms have the meanings ascribed to them below:
(i) “Cause” has the meaning given to such term, or to the term “For Cause” or
other similar phrase, in Grantee’s Employment Agreement with TeleTech or any Subsidiary, if
any; provided, however, that if at any time Grantee’s employment or service
relationship with TeleTech or any Subsidiary is not governed by a written agreement or if
such written agreement does not define “Cause,” then the term “Cause” shall have the meaning
given to such term in the Plan.
(ii) “Termination Date” means the date upon which Grantee incurs a Termination
of Service and for a Grantee who is then an employee, shall mean the latest day on which
Grantee is expected to report to work and is responsible for the performance of services to
or on behalf of TeleTech or any Subsidiary, notwithstanding that Grantee may be entitled to
receive payments from TeleTech (e.g., for unused vacation or sick time, severance payments,
deferred compensation or otherwise) after such date; and
(iii) “Good Reason” means with respect to any Grantee who is an employee (A)
any reduction in Grantee’s base salary; provided that a reduction in
Grantee’s base salary of 10% or less does not constitute “Good Reason” if such reduction is
effected in connection with a reduction in compensation that is applicable generally to
officers and senior management of TeleTech; (B) Grantee’s responsibilities or areas of
supervision within TeleTech or its Subsidiaries are substantially reduced; or (C) Grantee’s
principal office is relocated outside the metropolitan area in which Grantee’s office was
located immediately prior to the Change in Control; provided, however, that
temporary assignments made for the good of TeleTech’s business shall not constitute such a
move of office location. In addition, no termination of a Grantee’s employment or service
shall be deemed to be for Good Reason unless (i) Grantee provides TeleTech with written
notice setting forth the specific facts or circumstances constituting Good Reason within
thirty (30) days after the initial existence of the occurrence of such facts or
circumstances, (ii) TeleTech or the Subsidiary which employs Grantee has failed to cure such
facts or circumstances within thirty (30) days of its receipt of such written notice, and
(iii) the effective date of the termination for Good Reason occurs no later than ninety (90)
days after the initial existence of the facts or circumstances constituting Good Reason.
(iv) “Termination of Service” shall mean:
(a) As to an Independent Director, the time when a Participant who is an Independent
Director ceases to be a Director for any reason, including, without limitation, a
termination by resignation, failure to be elected, death or retirement, but excluding
terminations where the Participant simultaneously commences employment with TeleTech or
remains in employment or service with TeleTech or any Subsidiary in any capacity.
(b) As to an employee, the time when the employee-employer relationship between a
Participant and TeleTech or any Subsidiary is terminated for any reason, including, without
limitation, a termination by resignation, discharge, death, disability or retirement; but
excluding terminations where the Participant simultaneously commences service with TeleTech
as an Independent Director.
The Committee, in its sole discretion, shall determine the effect of all matters and questions
relating to Terminations of Service, including, without limitation, the question of whether a
Termination of Service resulted from a discharge for cause and all questions of whether particular
leaves of absence constitute a Termination of Service; provided, however, that,
with respect to Incentive Stock Options, unless the Committee otherwise provides in the terms of
the Award Agreement or otherwise, a leave of absence, change in status from an employee to an
Independent Director or other change in the employee-employer relationship shall constitute a
Termination of Service only if, and to the extent that, such leave of absence, change in status or
other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then
applicable regulations and revenue rulings under said Section. For purposes of the Plan, a
Participant’s employee-employer relationship or Independent Director relations shall be deemed to
be terminated in the event that the Subsidiary employing or contracting with such Participant
ceases to remain a Subsidiary following any merger, sale of stock or other corporate transaction or
event (including, without limitation, a spin-off).
(v) “Independent Director” means a Director of TeleTech who is not an employee of
TeleTech or any Subsidiary.
3B. Settlement of Vested RSUs. RSUs subject to an Award shall be settled
pursuant to the terms of the Plan as soon as reasonably practicable following the vesting thereof,
but in no event later than March 15 of the calendar year following the calendar year in which the
RSUs vest.
4. RSUs Not Transferable and Subject to Certain Restrictions. The RSUs subject to the
Award may not be sold, pledged, assigned or transferred in any manner other than by will or the
laws of descent and distribution, or pursuant to a qualified domestic relations order as defined in
Section 414(p) of the Internal Revenue Code of 1986, as amended (the “Code”).
5. Forfeiture If at any time during Grantee’s employment or services relationship
with TeleTech or at any time during the 12 month period following Grantee’s Termination of Service,
a Forfeiture Event (as defined below) occurs, then at the election of the Committee, (a) this
Agreement and all unvested RSUs granted hereunder shall terminate and (b) Grantee shall return to
TeleTech for cancellation all shares held by Grantee plus pay TeleTech the amount of any proceeds
received from the sale of any shares to the extent such shares were issued pursuant to RSUs granted
under this Agreement that vested (i) during the 24 month period immediately preceding the
Forfeiture Event, or (ii) on the date of or at any time after such Forfeiture Event. “Forfeiture
Event” means the following: (i) conduct related to Grantee’s employment or service relationship for
which criminal penalties may be sought; (ii) Grantee’s commission of an act of fraud or intentional
misrepresentation; (iii) Grantee’s embezzlement or misappropriation or conversion of assets or
opportunities of TeleTech or any Subsidiary; (iv) Grantee’s breach of any the non-competition or
non-solicitation provisions; (v) Grantee’s disclosing or misusing any confidential or proprietary
information of TeleTech or any Subsidiary or violation of any policy of TeleTech or any Subsidiary
or duty of confidentiality; or (vi) any other material breach of the Code of Conduct or other
appropriate and applicable policy of TeleTech or any Subsidiary. The Committee, in its sole
discretion, may waive at any time in writing this forfeiture provision and release Grantee from
liability hereunder.
6. Acceptance of Plan. Grantee hereby accepts and agrees to be bound by all the terms
and conditions of the Plan.
7. No Right to Employment. Nothing herein contained shall confer upon Grantee any
right to continuation of employment or service relationship by TeleTech or any Subsidiary, or
interfere with the right of TeleTech or any Subsidiary to terminate at any time the employment or
service relationship of Grantee. Nothing contained herein shall confer any rights upon Grantee as
a stockholder of TeleTech, unless and until Grantee actually receives shares of Common Stock.
8. Adjustments. Subject to the sole discretion of the Board of Directors, TeleTech
may, with respect to any vested RSUs that have not been settled pursuant to the Plan, make any
adjustments necessary to prevent accretion, or to protect against dilution, in the number and kind
of shares that may be used to settle vested RSUs in the event of a change in the corporate
structure or shares of TeleTech; provided, however, that no adjustment shall be made for the
issuance of preferred stock of TeleTech or the conversion of convertible preferred stock of
TeleTech. For purposes of this Section 7, a change in the corporate structure or shares of
TeleTech includes, without limitation, any change resulting from a recapitalization, stock split,
stock dividend, consolidation, rights offering, spin-off, reorganization or liquidation, and any
transaction in which shares of Common Stock are changed into or exchanged for a different number or
kind of shares of stock or other securities of TeleTech or another entity.
9. No Other Rights. Grantee hereby acknowledges and agrees that, except as set forth
herein, no other representations or promises, either oral or written, have been made by TeleTech,
any Subsidiary or anyone acting on their behalf with respect to Grantee’s rights under this Award,
and Grantee hereby releases, acquits and forever discharges TeleTech, the Subsidiaries and anyone
acting on their behalf of and from all claims, demands or causes of action whatsoever relating to
any such representations or promises and waives forever any claim, demand or action against
TeleTech, any Subsidiary or anyone acting on their behalf with respect thereto.
10. Confidentiality. GRANTEE AGREES NOT TO DISCLOSE, DIRECTLY OR INDIRECTLY, TO ANY
OTHER EMPLOYEE OF TELETECH AND TO KEEP CONFIDENTIAL ALL INFORMATION RELATING TO ANY AWARDS GRANTED
TO GRANTEE, PURSUANT TO THE PLAN OR OTHERWISE, INCLUDING THE AMOUNT OF ANY SUCH AWARD AND THE RATE
OF VESTING THEREOF; PROVIDED THAT GRANTEE SHALL BE ENTITLED TO DISCLOSE SUCH INFORMATION TO SUCH
OF GRANTEE’S ADVISORS, REPRESENTATIVES OR AGENTS, OR TO SUCH OF TELETECH’S OFFICERS, ADVISORS,
REPRESENTATIVES OR AGENTS (INCLUDING LEGAL AND ACCOUNTING ADVISORS), WHO HAVE A NEED TO KNOW SUCH
INFORMATION FOR LEGITIMATE TAX, FINANCIAL PLANNING OR OTHER SUCH PURPOSES.
11. Severability. Any provision of this Agreement (or portion thereof) that is deemed
invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to
this Section 10, be ineffective to the extent of such invalidity, illegality or unenforceability,
without affecting in any way the remaining provisions thereof in such jurisdiction or rendering
that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other
jurisdiction.
12. References. Capitalized terms not otherwise defined herein shall have the same
meaning ascribed to them in the Plan.
13. Entire Agreement. This Agreement (including the Plan) constitutes the entire
agreement between the parties concerning the subject matter hereof and supersedes all prior and
contemporaneous agreements, oral or written, between TeleTech and Grantee relating to Grantee’s
entitlement to RSUs or similar benefits, under the Plan or otherwise.
14. Amendment. This Agreement may be amended and/or terminated at any time by mutual
written agreement of TeleTech and Grantee; provided, however that TeleTech, in its sole discretion,
may amend the definition of “Change in Control” in Section 3A(b) from time to time without the
consent of Grantee.
15. Section 409A.
(a) Notwithstanding any provision herein to the contrary, for purposes of determining
whether Grantee has incurred a Termination of Service for purposes of Section 3A hereof,
Grantee will not be treated as having incurred a Termination of Service unless such
termination constitutes a “separation from service” as defined for purposes of Section 409A
of the Internal Revenue Code of 1986, as amended (“Section 409A”). If Grantee has
a “separation from service” following a Change in Control pursuant to Section 3A(a)(ii), the
RSUs vesting as a result of such “separation from service” will be paid on a date determined
by TeleTech within 5 days of Grantee’s “separation from service.” If Grantee is a
“specified employee” (within the meaning of Section 409A) with respect to TeleTech at the
time of a “separation from service” and Grantee becomes vested in RSUs as a consequence of a
“separation from service,” the delivery of property in settlement of such vested RSUs shall
be delayed until the earliest date upon which such property may be delivered to Grantee
without being subject to taxation under Section 409A.
(b) This Restricted Stock Unit Agreement and the Award are intended to be exempt from the
provisions of Section 409A of the Code and Department of Treasury regulations and other
interpretive guidance issued thereunder, as providing for any payments to be made within the
applicable “short-term deferral” period (within the meaning of Section 1.409A-1(b)(4) of the
Department of Treasury regulations) following the lapse of a “substantial risk of forfeiture”
(within the meaning of Section 1.409A-1(d) of the Department of Treasury regulations).
Notwithstanding any provision of this Agreement to the contrary, in the event that the Committee
determines that the Award may be subject to Section 409A of the Code, the Committee, in its sole
discretion, may adopt such amendments to this Award Agreement or adopt other policies and
procedures (including amendments, policies and procedures with retroactive effect), or take any
other actions, from time to time, without the consent of Grantee, that the Committee determines are
necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the
intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the
requirements of Section 409A of the Code and related Department of Treasury guidance and thereby
avoid the application of penalty taxes under Section 409A of the Code.
16. No Third Party Beneficiary. Nothing in this Agreement, expressed or implied, is
intended to confer on any person other than Grantee and Grantee’s respective successors and assigns
expressly permitted herein, any rights, remedies, obligations or liabilities under or by reason of
this Agreement.
17. Governing Law. The construction and operation of this Agreement are governed by
the laws of the State of Delaware (without regard to its conflict of laws provisions).
[SIGNATURE PAGE TO FOLLOW]
Executed as of the date first written above.
| TELETECH HOLDINGS, INC. | |||||
| By: | |||||
| Title: Interim Chief Financial Officer | |||||
| Signature of (“Grantee”) | |||||
| Grantee’s Social Security Number | |||||
