Exhibit 10.1
------------
AMENDMENT, DATED SEPTEMBER 22, 1999, TO
AGREEMENT FOR IN-BOUND TELEMARKETING
WITH UNITED PARCEL SERVICE GENERAL SERVICES CO.
Portions of this exhibit have been omitted pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission.
The omissions have been indicated by an asterisk ("*"), and the omitted
text has been filed separately with the Securities and Exchange Commission.
APAC CUSTOMER SERVICES, INC.
UPS/APAC AMENDMENT POINTS
SEPTEMBER 22, 1999
1. DETAILS:
o UPS recommended wage rates per position by site (see #5) will be
implemented upon agreement of communication strategy.
Implementation will be at the beginning of the next pay period
and no later than September 30, 1999.
o Management increases of * to be implemented within 45 days due
to the evaluation with UPS involvement of APAC Regional and Site
management staff associated with the UPS program.
o APAC will assume responsibility for replacement training
beginning on the effective date of the hourly wage increases.
o UPS will pay for growth training for volume increases of 5% over
previous month beginning October 1, 1999.
o Billable rate for agreed upon volume ramp-up training will be at
* of total billable rate for the workgroup/site.
o UPS will pay COLA each year pursuant to the current contract
terms. COLA will be based on site specific cost of living
adjustments. APAC agrees that * of COLA *.
o APAC will have the Regional HR Manager and two (2) ERM personnel
per site in place within the next *.
o * will directly interface with *.
o Accuvision will be continued only in Newport News on the
effective date of the hourly wage increase
o UPS' future plans are to * throughout the term of the contract,
and *.
BILLABLE RATES
SITE SEGMENT BILLABLE RATE
_____________________________________________________________
High Point Customer Service *
Newport News Customer Service *
Newport News Package Information *
Newport News Claims *
Newport News New Processes *
Fort Worth Customer Service *
Fort Worth Package Information *
Fort Worth Claims *
o The new billable rates are effective on the day the new
hourly wages are in effect in the sites.
o New Processes billable rates will be determined once
these positions have been defined.
2. SCHEDULE ADHERENCE CRITERIA:
o Call projections will include a baseline forecast for a rolling
90-day period of time, including intra-day and segmented
allocations.
o APAC will receive final call projections a minimum of 4
weeks prior to the stated time period.
o APAC will be responsible for meeting committed staffing
requirements if final projections are within 10% of the 90-day
call projections. If call volumes are in excess of 10% of
previous month, APAC will require a mutually agreed upon ramp
up period and there will be no schedule adherence penalty or
incentive for that month.
o Previously defined UPS required assumptions and look back
periods will be used in developing staffing requirements.
o SCHEDULE ADHERENCE SERVICE LEVEL DEFINITION. Schedule adherence
attainment will be determined by calculating the percentage of
15- minute intervals for all segmented groups over the week
within a site which are greater than or equal to 94% of the
required staffing as shown in the staffing plan. The total
15-minute intervals that achieved 94% or greater staffing, for
all segmented groups, will then be divided by the total
15-minute intervals available for all segmented groups to
determine schedule adherence attainment. Intervals waived
by UPS Support Manager for the purposes of providing relief due
to absent call volume will be deemed as an interval attained by
APAC.
THE PENALTY/INCENTIVE AMOUNTS AND PERCENTS ARE AS
FOLLOWS AND
ARE CALCULATED BY SITE:
% SCHEDULE ADHERENCE BONUS/PENALTY
98 - 100.00% * bonus
95 - 97.99% * bonus
93 - 94.99 % * bonus
88 - 92.99% * penalty
less than 87.99% * penalty
o Implementation to occur January 1, 2000.
o APAC agrees that we will waive the bonus amount for the weekly
measurement period for the specific site if we achieved a bonus
for that period without meeting the service level requirement.
3. QUALITY SCORECARD CRITERIA:
o APAC agrees to implement an incentive/penalty program designed
around the current UPS quality scorecard process with defined
and statistically valid measurement criteria.
o Incentive and penalties will be calculated monthly.
o The Customer Service Scorecard currently in use will be used
for Customer Service.
o Separate Package Information and Claims Scorecards will be
established, implemented and rolled out in line with the CS
Quality Scorecard.
o Modifications and/or changes to the Quality Scorecard will
require UPS to provide APAC a 3-month notice. UPS will ensure
the Quality Scorecard is administered consistently with other
internal sites and measurements.
THE SCORE RANGES AND PENALTY/INCENTIVE AMOUNTS ARE AS FOLLOWS
AND ARE CALCULATED FOR CUSTOMER SERVICE ONLY:
QUALITY SCORE RANGES BONUS/PENALTY
9.00 - 10.00 * bonus
8.00 - 8.99 * bonus
7.00 - 7.99 * bonus
6.00 - 6.99 * penalty
less than 6.00 * penalty
o Implementation to occur January 1, 2000.
4. CONTRACT TERM:
o Term of contract to be 3 years commencing the effective date of
the wage increases and will include automatic 1-year renewals.
Senior Management of APAC and UPS will meet yearly to review
the previous year's performance. Termination for convenience
clause to include termination of specific workgroup(s) or
entire relationship upon written notification. Termination for
Convenience can be for any reason, at any time and for any type
of work performed. Termination ramp down to be no less than 9
months from the date of notice. UPS shall use it's best efforts
to ramp down revenue no greater than one third per quarter
during the 9 month ramp down period. During ramp down UPS has
the right for UPS or its designee to co-exist with APAC in each
site.
5. WAGES. THE FOLLOWING HOURLY WAGES ARE MUTUALLY AGREED TO:
FORT WORTH
Starting Wages
Current New Difference
* $ * $ * $ *
* $ * $ * $ *
* $ * $ * $ *
Average Wages
Current New Difference
* $ * $ * $ *
* $ * $ * $ *
* $ * $ * $ *
NEWPORT NEWS
Starting Wages
Current New Difference
* $ * $ * $ *
* $ * $ * $ *
* $ * $ * $ *
* NA $ *
* NA $ *
* NA $ *
* NA $ *
Average Wages
Current New Difference
* $ * $ * $ *
* $ * $ * $ *
* $ * $ * $ *
* NA $ *
* NA $ *
* NA $ *
* NA $ *
HIGH POINT
Starting Wages
Current New Difference
* $ * $ * $ *
Average Wages
Current New Difference
* $ * $ * $ *
6. PACKAGE INFORMATION WAGE PROGRESSION:
o Job descriptions, definitions, wage rates, and certification
procedures will be provided to APAC by UPS.
Wage Rates
o * $ *
o * $ *
o * $ *
o * $ *
o * $ *
o * $ *
o * $ *
o * $ *
7. CLAIMS WAGE PROGRESSION:
o Job descriptions, definitions, wage rates, and certification
procedures will be provided to APAC by UPS.
Wage Rates
o * $ *
o * $ *
o * $ *
o * $ *
o * $ *
8. THE REMAINING PROVISIONS OF THE AGREEMENT DATED AUGUST 8, 1995,
INCLUDING POLICY STATEMENTS PRESENTLY IN FORCE REMAIN IN FORCE. IN
THE EVENT OF A CONFLICT WITH THIS AMENDMENT AND THE AGREEMENT DATED
AUGUST 8, 1995 OR ANY POLICY STATEMENT THIS AMENDMENT WILL
CONTROL.
9. CHANGE OF CONTROL CLAUSE (SECTION 49 PARAGRAPH D) FROM BASE CONTRACT
TO BE DELETED.
10. UPS TO CONSIDER ALLOCATING FUTURE ELIGIBLE EARNED TRAINING CREDITS OR
JOBS CREATION TO APAC.
11. UPS AGREES TO ALLOW APAC TO EXTERNALLY ANNOUNCE THE CONTRACT
EXTENSION, AS ATTACHED, AND THAT UPS ACKNOWLEDGES THAT APAC IS
SUBJECT TO OBLIGATIONS UNDER LAW OR MAKE PROPER DISCLOSURE OF
MATERIAL DEVELOPMENTS.
12. APAC'S SERVICING OF ENTITIES COMPETITIVE TO UPS WILL BE COVERED IN
ACCORDANCE WITH SECTION 21 PARAGRAPH B OF THE CURRENT AGREEMENT WITH
THE ADDITION OF LANGUAGE ALLOWING APAC TO SOLICIT COMPETITIVE
BUSINESS IMMEDIATELY UPON NOTICE OF TERMINATION OF THE AMENDED
AGREEMENT BY UPS.
Accepted By:
/s/ Wayne Herring /s/ Theodore G. Schwartz
- ------------------------- -------------------------
Wayne Herring for UPS Ted Schwartz for APAC
Dated: September 22, 1999 Dated: September 22, 1999