Document:

Exhibit 10.04

 

June 30, 2005

 

Mr. Paul Humphries

Senior Vice President, World Wide Mechanicals 

1150 Lively Blvd.

Elk Grove Village, Illinois 60007

 

Award Agreement for Deferred Compensation Plan

 

Dear Paul:

 

I am pleased to confirm that Flextronics International USA, Inc. (the “Company”) has agreed to provide you with a deferred long term incentive bonus in return for services to be rendered in the future as an employee of the Company (the “Deferred Bonus”). The Deferred Bonus will equal thirty percent (30%) of your annual base salary in effect on July 1, 2005, and on July 1st of each subsequent year. Thus, on July 1, 2005, subject to the limitations below, and on each subsequent July 1st on which you are eligible to earn the Deferred Bonus, you will earn a Deferred Bonus equal 30% of your annual base salary in effect on that day.

 

Before July 1st of each subsequent year, the Company will make a determination, in its sole and absolute discretion, of your eligibility to earn the Deferred Bonus for that July 1st. From time to time, the Company may, in its sole and absolute discretion, make additional contributions to your Deferred Bonus. The Company will make an initial discretionary contribution to your Deferred Bonus of $400,000 on July 1, 2005. The Company reserves the right to amend or terminate the Deferred Bonus at any time for all amounts of the Deferred Bonus that have not been earned on the date of the amendment or termination. If your employment with the Company is terminated for any reason, you will no longer be eligible to earn the Deferred Bonus.

 

The Deferred Bonus will not be paid currently to you. Instead, the amount of the Deferred Bonus will be credited to the account (the “Deferral Account”) established on your behalf under the Flextronics International USA, Inc. 2005 Senior Management Deferred Compensation Plan (the “Deferred Compensation Plan”). (This agreement will constitute the Award Agreement referred to in Section 3 of your Deferral Agreement entered into pursuant to the Deferred Compensation Plan.)

 

The Deferred Account will vest as follows: One-third of the unvested balance of the Deferral Account will vest on the first July 1st that occurs at least one year after the day that (i) the sum of your age and your years of service with the Company equals or exceeds 60 and (ii) you have fulfilled at least five years of service with the Company (the “First Vesting Day”). One-half of the remaining unvested balance of the Deferral Account will vest one year after the First Vesting Day (the “Second Vesting Day”). Accordingly 2/3rds of the Deferral Account will be vested on the Second Vesting Day (assuming no accelerated vesting has occurred as a result of a Change of Control, as addressed below). The remaining unvested portion of the Deferral Account will vest one year after the Second Vesting Day (the “Third Vesting Day”). Thus, the Deferred Account will be 100% vested on the Third Vesting Day.

 

 

In particular, we understand that, on July 1, 2005 you will be 50 years old and will have 5 years of service with the Company, so that the sum of your age and years of service will be 55. Therefore, if you remain continuously employed with the Company until July 1, 2009, that day will be the first July lst that occurs at least one year after the day on which your years of service plus your age will equal or exceed 60. Accordingly, that day will be the First Vesting Day, and 1/3rd of the unvested balance of your Deferral Account will vest on that day. One-half of the remaining unvested balance of your Deferral Account will vest on July 1, 2010, i.e., the Second Vesting Day; and the remaining unvested portion of your Deferral Account will vest on July 1, 2011, i.e., the Third Vesting Day.

 

Any amounts of the Deferred Bonus that are earned when any portion of your Deferral Account has already vested will vest as if they had been earned before any portion was vested. That is, the percentage of any such Deferred Bonus that equals the vested percentage of your Deferral Account on the earning day will be credited to the vested portion of the Deferral Account, and the remainder will be credited to the unvested portion of your Deferral Account, which will vest in accordance with the normal vesting schedule. The entire amount of any Deferred Bonus earned on or after the Third Vesting Day will be credited to the vested portion of the Deferral Account when earned, since the Deferral Account will be 100% vested on and after that date.

 

Special vesting rules apply in the event of your death or a “Change of Control” as defined in the Deferred Compensation Plan. Specifically, your account shall be 100% vested upon your death, if you are employed with the Company at that time. Upon a “Change of Control” as defined in the Deferred Compensation Plan, if you are still employed with the Company you will be deemed to have vested in that percentage of any unvested portion of the Deferred Account equal to the number of complete months during which you have remained continuously employed with the company during the six-year period from July 1, 2005 through July 1, 2011 divided by 72. Any portion of your Deferral Account that remains unvested after a Change of Control shall continue to vest in accordance with the schedule described above. For example, if a Change of Control occurs on July 1, 2006, and you are still employed with the Company, then 1/6th of your Deferral Account will vest on the Change of Control; 1/3rd of the 5/6ths portion of your Deferral Account that remained unvested immediately after the Change of Control will vest on the First Vesting Day (so that 4/9ths will then be vested); an additional 12 of the 5/9ths portion of your Deferral Account that remained unvested immediately after the First Vesting Day will vest on the Second Vesting Day (so that 13/18ths will then be vested); and the remaining unvested portion of your Deferral Account will vest on the Third Vesting Day.

 

If your employment with the Company is terminated for any reason before the entire Deferred Bonus has vested, the unvested percentage of your Deferral Account (as determined at the end of the day of your termination) will be terminated and forfeited for no consideration. For example, if your employment is terminated before the First Vesting Day, you will be entirely unvested on that date, and your entire Deferral Account will be forfeited; and if your employment is terminated on or after the First Vesting Day but on or before the Second Vesting Day, you will be 1/3rd vested on that date, and 2/3rds of your entire Deferral Account will be forfeited. (These examples assume that no Change of Control occurs at any relevant time and your employment is not terminated by reason of death.)

 

2

 

After your separation from service with the Company, you will receive a distribution of any vested balance (less applicable tax withholdings) in accordance with the provisions of the Deferred Compensation Plan and your Deferral Agreement.

 

You understand and acknowledge that your account balance under the Deferred Compensation Plan will be reachable by the Company’s general creditors upon the insolvency of the Company. You also understand and acknowledge that you will not be entitled to accelerate distributions from the Deferred Compensation Plan except in the event of your Disability or Unforeseeable Emergency as defined under the Deferred Compensation Plan.

 

The Deferred Bonus will be in addition to any rights that you have under any other agreement with the Company. Any Deferred Bonus will not be deemed to be salary or other compensation for the purpose of computing benefits under any employee benefit plan or other arrangement of the Company for the benefit of its employees.

 

If a future change in law would, in the judgment of the Compensation Committee or Plan Administrator, likely accelerate taxation to you of amounts that would be credited to your account under the Deferred Compensation Plan in the future, you and the Company will attempt to amend the Deferred Compensation Plan to satisfy the requirements of the change in law and, unless and until such an amendment is agreed to, the Company will cease to credit Deferred Bonuses to your account established under the Deferred Compensation Plan.

 

The Deferred Bonus does not give you any right to be retained by the Company, and does not affect the right of the Company to dismiss any employee. The Company may withhold from any payment of the Deferred Bonus as may be required pursuant to applicable law.

 

Enclosed are:

 

(1)                                               Flextronics International USA, Inc. 2005 Senior Management Deferred Compensation Plan;

 

(2)                                               Deferral Agreement Form for 2005 and Beneficiary Form; and

 

(3)                                               Summary of the 2005 Deferred Compensation Plan.

 

By signing below, you represent that you have read and understand these documents and have had adequate opportunity to ask any questions about the documents. You understand that although the Company has attempted to structure a plan to accomplish the tax results discussed in the documents, the Company cannot warrant that the tax effect on you will be as expected. You also understand that the Company and its representatives are not attempting to give you tax advice. We strongly advise you to seek any tax advice from your own tax adviser.

 

3

 

If any provision of this agreement is determined to be unenforceable, the remaining provisions shall nonetheless be given effect. This agreement shall be construed in accordance with the laws of the State of California without regard to conflict of law rules.

 

 

Sincerely,

 

FLEXTRONICS INTERNATIONAL USA, INC.

 

 

	
By:
    	
/s/ Thomas J. Smach
    	
 
    
	
 
    	
Thomas J. Smach,
    	
 
    
	
 
    	
Chief Financial Officer
    	
 
    

 

 

Accepted and agreed on this 30th day of June, 2005.

 

 

	
/s/ Paul Humphries
    	
 
    
	
Paul Humphries
    	
 
    

 

4Exhibit 10.05

 

408.577.4841 Desk

916.575.8292 Fax

www.flextronics.com

 

December 8, 2010

 

Jonathan S. Hoak 
 Palo Alto, California

 

Dear Jonathan,

 

On behalf of Flextronics, I am delighted to offer you the position of General Counsel & Corporate Secretary, working at our Milpitas, California facility, reporting to me. The specific details of the offer are as follows:

 

Cash Compensation:

 

The starting annual salary for this position is $425,000.00, which is equivalent to $17,708.33 semi-monthly. Paydays are on the 15th and last day of each month. You are also eligible to participate in the Flextronics Quarterly Bonus Program. Your target bonus is 70% of your base quarterly salary, with an opportunity for a 2X multiplier for a total bonus opportunity of 140% of salary, or $595,000.00. Actual payout level is dependent upon company performance and in accordance with the bonus plan for your organization. Assuming you join Flextronics on or before February 1, 2011, you will be eligible for full FY2011 Q4 bonus which will be payable approximately 45 days after the close of the quarter. The amount will be determined based on the performance of your particular bonus program for that quarter.

 

Additionally, on your first regularly scheduled payroll date, you shall be advanced a $212,500.00 contingent sign-on bonus, less withholding and customary payroll deductions. You agree to reimburse the Company for the contingent sign-on bonus should you voluntarily terminate your employment with the Company within one year of your hire date. Reimbursement to the Company will be made within ten days of termination. Should you remain or be terminated involuntarily before completing one year, the sign-on bonus will then be considered earned and not reimbursed to the Company.

 

Equity Compensation:

 

Pending approval of the Compensation Committee of the Board of Directors, you will also receive an option to purchase 150,000 shares of Flextronics stock, priced at fair market value of Flextronics stock on the date of grant. The option will vest as follows: 25% of the total option shares will vest and become exercisable on the first anniversary of the date of grant and 75% of the total shares will vest and become exercisable in equal increments over thirty-six (36) months beginning the first month after the first anniversary of grant date. The vesting schedule and all terms, conditions, and limitation of the stock options are set forth in the applicable stock grant notice, the Company’s standard stock option agreement and the stock option plan.

 

Additionally, also pending approval of the Compensation Committee of the Board of Directors, you will be granted a Share Bonus Award for 50,000 shares of Flextronics stock. The shares constituting the award shall be issued as a four-year pro-rata vesting, beginning on the date of the initial approval. The Share Bonus Award shall be subject to the terms and conditions of the applicable plans and policies.

 

 

 

You will also be eligible to participate in our annual stock focal review. Annual stock awards are determined on a case-by-case basis in accordance with your individual performance and market benchmarks for your position.

 

The Compensation Committee reviews and approves all equity grant requests during the next scheduled quarterly meeting following the quarter in which the recommendation was made.

 

Long Term Cash Incentive Plan:

 

Subject to Compensation Committee of the Board of Directors approval, you will be eligible to participate in the Flextronics Long Term Cash Incentive Plan, which will entitle you to annual company contributions of 30% of your base salary (or $127,500.00). The Long Term Cash Incentive Plan annual contribution is subject to company performance. Also, beginning in 2011 you will have the opportunity to make additional elective contributions to the plan on a tax-deferred basis.

 

Other Benefits:

 

As a Flextronics Executive team member, you will be eligible to participate in our Tracking Free Attendance Program, and will be eligible for a suite of insurance coverage (see plan booklet) and 401k participation including elective deferrals and company matching effective the first of the month following your date of hire. Timely enrollment of specific benefit plans is critical. You must enroll by the first of the month following your date of hire; or you will default to no coverage and will not be able to make an election until the next annual “Open Enrollment.” Consult the plan booklet for more information. Also note that the Company reserves the right to modify wages and benefits from time to time at its discretion.

 

For questions related to US Compensation and Benefits, please contact: 

 

Kim Ogles

USA & Canada Staffing Manager

Kim.Ogles@Flextronics.com

408.577.4841 desk

503.473.1926 cell

916.575.8292

 

Confidentiality and At-Will Employment:

 

In your work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets, of any former employer or other person to whom you have an obligation of confidentiality. Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. By accepting this offer of employment you are assuring us that you will be able to work for Flextronics within the guidelines just described. Moreover, you realize as an employee of the Company you may create or have access to confidential information, trade secrets, processes, inventions, etc. belonging to the Company or third-parties doing business with the Company. As such, you will be required to sign, as a condition of employment, an Employee Proprietary Information and Inventions and Non-Solicitation of Employees and Customers Agreement.

 

2

 

You will be expected to abide by Company rules and regulations, contained in the Company’s Employee Handbook, which the Company will distribute to you and update from time-to-time, and online on Flextronics’s Intranet.

 

Your employment with the Company is “at-will”. This means that either you or the Company has the right to terminate the employment relationship at any time for any lawful reason, with or without advance notice, with or without cause. The “at-will” nature of employment with Flextronics is an aspect of your employment that cannot be changed, except in writing signed by you and an officer of Flextronics. Any contrary representations or agreements, which may have been made to you, are superseded by this offer. In addition, the Company has the right to take any personnel action (e.g., change of status, relocation, change of salary and benefits, etc.) at any time, for any lawful reason, with or without advance notice, with or without cause.

 

Your employment pursuant to this offer is contingent upon:

 

1.              You completing Section 1 of the Federal Form 1-9 and providing, within 3 business days of your start date, the legally required proof of your identity and authorization to work in the United States;

2.              Your execution of the company’s Confidential Information and Inventions Agreement;

3.              The satisfactory completion of your background investigation by the Company;

 

If you accept this offer, the terms described in this letter and the Confidential Information and Inventions Agreement shall be terms for your employment. This offer letter supersedes any other statements or promises made by any company representative. It contains the entire offer the Company is making to you. This agreement can only be modified by written agreement signed by you and an officer of the Company. This offer expires on December 31, 2010. If accepted, your first day of employment is anticipated to be February 1, 2011.

 

If you agree with all the terms and conditions set forth in this letter, please sign the attached offer acceptance and relocation repayment agreement and return it to Kim Ogles. We look forward to your positive response and are very excited about your joining our Flextronics Team!

 

 

	
Regards,
    
	
 
    
	
/s/ Mike McNamara
    	
 
    
	
Mike McNamara
    
	
CEO, Flextronics
    

 

3

 

EMPLOYMENT ACCEPTANCE

 

I understand all the terms and conditions in this offer letter, including those regarding the “at will” relationship and I accept this offer. I agree by signing below that the Company has made no other promises other than what is outlined in this letter and that it contains the entire offer the Company is making to me and I accept this offer.

 

 

	
/s/ Jon S. Hoak
    	
 
    	
12-15-10
    	
 
    	
1/31/11
    
	
Signature
    	
 
    	
Today’s Date
    	
 
    	
Start Date
    

 

SIGN-ON BONUS REPAYMENT AGREEMENT

 

I agree to reimburse the Company for the contingent sign-on bonus should I voluntarily terminate my employment with the Company within one year of the hire date. Reimbursement to the Company will be made within ten days of termination. Should I remain employed for one year or be terminated involuntarily before completing one year, the sign-on bonus will then be considered earned, and not reimbursed to the Company.

 

 

	
/s/ Jon S. Hoak
    	
 
    	
Jon S. Hoak
    	
 
    	
12-15-10
    
	
Signature
    	
 
    	
Print Name
    	
 
    	
Today’s Date
    

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}]]