exv10w8






Exhibit 10.8




PLEXUS CORP.

VARIABLE INCENTIVE COMPENSATION PLAN

(as amended through September 29, 2010)

PLEXUS LEADERSHIP TEAM




PLAN OBJECTIVES



The primary objectives of the Variable Incentive Compensation Plan (Plan) are to reward results
delivered by plan participants that enhance shareholder value and to assist Plexus Corp. (Plexus)
to attract, retain and motivate highly qualified and talented executives. The Plan provides annual
variable incentive compensation opportunities to participants for the achievement of specified
financial performance and other significant results that contribute to the overall success of
Plexus. Increasing revenues, improving financial returns on capital employed, and achieving
specific personal objectives are the three performance elements of this Plan.




PLAN YEAR



The Plan Year is effective for each Plexus fiscal year, unless and until terminated or modified.




ELIGIBILITY FOR PLAN PARTICIPATION



Participation in this Plan is limited to the members of the Plexus Leadership Team.




INCENTIVE PLAN COMPENSATION



Plan awards are to be calculated based upon the Plan Year base salary (e.g., salary excluding
bonuses, paid commissions, reimbursed relocation expenses, or any other special pay, but including
amounts deferred) of each participant adjusted for pro-rations as applicable (See Award Payment
Timing and Eligibility, below). Incentive awards are calculated for each position (job) a
participant holds through the plan year and are pro-rated accordingly based on calendar weeks in
each position (FY 2010 = 52 weeks).




INCENTIVE PLAN PERFORMANCE MEASURES



The incentive performance measures, each of which stands independently of the others with regard to
award opportunities, are:





	 	•	 	Revenues: Total Fiscal Year Net Sales of Plexus Corp.
	 
	 	•	 	Return on Average Capital Employed (ROCE): Annual
Operating Income for the Fiscal Year divided by Average Capital Employed. Where,






	 	•	 	Operating Income: As reported in the company’s audited income
statement for the Fiscal Year adjusted, if necessary, to eliminate stock-based
employee compensation expense and non-recurring or unusual charges.
	 
	 	•	 	Average Capital Employed: The 5 point average of the prior
Fiscal Year end and the quarterly current Fiscal Year Capital Employed balances.






	 	•	 	Capital Employed: Total Assets (minus Cash
and Short-Term Investments) less non-interest bearing Current and
Non-current Liabilities.






	 	•	 	Objectives: Individual participant objectives that relate to measurable personal or
site/location/team group goals for the plan year; typically the number of goals should be
limited to 3 to 5, which have been developed with, reviewed by and approved by the
participant’s supervisor.





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INCENTIVE PLAN PERFORMANCE AND REWARD OPPORTUNITIES



Incentive compensation is paid based on the following achievement levels:




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Component	 	Threshold	 	Payout	 	50% Opportunity	 	Payout	 	Full Opportunity	 	Payout
	Revenue
	 	$	*	 	 	 	0	%	 	$	*	 	 	 	40	%	 	$	*	 	 	 	*	%
	ROCE
	 	 	*	%	 	 	0	%	 	 	* 	%	 	 	40	%	 	 	* 	%	 	 	*	%
	Personal Objectives
	 	 	 	 	 	 	0	%	 	 	 	 	 	 	20	%	 	 	 	 	 	 	*	%
	Total Incentive =
Revenues + ROCE + Objectives
	 	 	 	 	 	 	0	%	 	 	 	 	 	 	100	%	 	 	 	 	 	 	200	%








 




			
	[*	 	Specific threshold, 50% opportunity and full opportunity amounts, and percentages
allocated to each component, are the same for each participant and determined with the
approval of the Compensation and Leadership Development Committee; that information shall
be communicated to eligible participants. All year references herein will be deemed to
refer to the appropriate Fiscal Year and numbers in this matrix will be re-set for such
years.]






	 	•	 	Threshold: Below the Revenue and/or ROCE Thresholds, only personal objectives awards
can be earned. Revenue and ROCE measures begin producing incentive awards for above
Threshold achievement.
	 
	 	•	 	Full Opportunity: Full Opportunity for Revenue and ROCE measures relate to the relevant
Fiscal Year financial plan. Personal objectives relate to individual participant
performance and may reflect personal, location, site, functional group, or other measurable
objectives. Awards will be pro-rated on a straight-line basis for performance that falls
between Threshold and Full Opportunity achievement.






Note: No award will be paid for any component if the company incurs a net loss for the fiscal year
(excluding non-recurring or unusual charges).




AWARD PAYMENT TIMING AND ELIGIBILITY



Eligible
participants will receive earned incentive awards on or around December 10 of the
subsequent fiscal year (Payment Date). Adjustments occur under the following circumstances:





	 	•	 	Participant Transfer: Awards will be pro-rated for participants who transfer between
company organizations (sites, locations, functional groups, SBU’s, etc.) based upon time
spent in each job.
	 
	 	•	 	Participant Status Change: Participants changing status (to/from eligible/ineligible
position) are to be pro-rated by eligible weeks on the company payroll divided by the
number of weeks of the plan year (FY 2010 = 52 weeks).
	 
	 	•	 	Employment/Re-employment: New or rehired employees who enter the Plan after the start of
the Plan Year will receive a pro-rated award based on the time actually in the Plan.
	 
	 	•	 	Employment Termination: Plan participants who leave the employ of Plexus (whether
voluntarily or involuntarily) prior to the end of the current Fiscal Year, except in the
case of retirement, disability, death or approval by the CEO, forfeit all rights to
incentive awards accrued during the Plan Year. Plan participants will be ineligible for an
award under this Plan if their employment with Plexus is terminated for cause at any time
prior to the Payment Date. Plan participants active as of the last day of the Fiscal Year
will receive an award based on time actually spent in the Plan.





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	 	•	 	Retirement, Disability, or Death: “Retirement” means eligible for retirement under
Plexus Corp.’s retirement guidelines. Disability means eligible for disability benefits
and unable to continue in the
employ of the company due to such disability. In the event of death, any payable award will
be paid to the participant’s beneficiary(ies), or to the estate in the event that no
beneficiary is named, following the end of the Plan Year. Awards for participants who leave
due to retirement, disability or death will be pro-rated by eligible weeks on the company
payroll divided by the number of weeks of the plan year (FY 2010 = 52 weeks).
	 
	 	•	 	Non-performing Employees: If at any time during the plan year an individual’s
performance is not satisfactory and the participant is on a formal written performance
improvement plan, such participant may be removed from this Plan, and either no award or a
reduced award will be paid to the individual. Approval of such action will be made by the
CEO subject to the final approval of the Compensation and Leadership Development Committee
of the Board.
	 
	 	•	 	Leaves of Absence: Awards for participants who are on an unpaid Leave of Absence will
be pro-rated for the ROCE and Revenue components based upon eligible calendar weeks on the
company payroll divided by the number of weeks of the plan year (FY 2010 = 52 weeks).





COMMUNICATION



Each participant will receive a copy of this plan document and a Participant Award Opportunity
Summary.




ADMINISTRATION



Overall policy direction shall be provided by the Board of Directors. Plan administration shall be
the responsibility of the CEO with support and guidance from the Compensation and Leadership
Development Committee of the Board of Directors.




EXCEPTIONS AND REVISIONS



It is conceivable that there may be particular situations which are not properly accommodated by
the regular criteria and boundaries of the prevailing incentive program, (e.g. the effect that an
acquisition, a secondary stock offering, or the like may have on Plexus’ financial performance).
Should such situation(s) occur, the CEO will recommend appropriate adjustments to the Compensation
and Leadership Development Committee of the Board of Directors. If adjustments are made, the
reason for such adjustments will be set forth in the Committee’s Minutes and communicated to Plan
participants. Nothing in this plan document or associated communications in any way promises or
guarantees the compensation or employment of any participant with Plexus Corp. or any successor or
related company(ies).




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