Document:

Exhibit

EXHIBIT 10.02
EXECUTION COPY
SEPARATION AGREEMENT 
AND RELEASE OF CLAIMS
This Separation Agreement is entered into between Flex Ltd. and any predecessor, successor, subsidiary or affiliated company (collectively, the “Company”) and Michael M. McNamara (“Executive”).  In consideration of the mutual promises set forth below, the Company and Executive have agreed as follows:
		
	1.
	SEPARATION.

		
	a.
	Separation Date.  Executive will retire from his position as Chief Executive Officer and from any other President and/or officer positions of the Company, in each case on December 31, 2018 (the “Separation Date”) and hereby agrees to resign his membership from the Flex Ltd.’s Board of Directors (the “Board”) as of the Separation Date, with no further action required by Executive, the Company or the Board.  In relation to Executive’s board of director seats and/or officer positions for the Company’s subsidiaries, affiliates and related parties, including but not limited to Elementum and Bright Machines, Executive will cease to be the Company’s representative on such Boards, but may serve on the Elementum and Bright Machines boards if separately appointed to such Board(s), subject to the Company’s consent to the extent such consent is required.

		
	b.
	Severance Pay and Benefits.  Provided that Executive timely executes and does not revoke this Separation Agreement, including the release of claims set forth in Sections 4 and 5 of this Separation Agreement, and in accordance with the time periods set forth in Sections 17 and 18 of this Separation Agreement, the Company agrees to:

		
	i.
	Pay Executive a lump sum equal to twelve (12) months of Executive’s base salary in effect as of immediately prior to the Separation Date, less applicable taxes, withholdings and deductions, within five (5) business days following the Effective Date (as defined below);

		
	ii.
	Accelerate Executive’s time-vesting RSUs (as set forth in Exhibit A) that would have vested during calendar year 2019 had Executive remained continuously employed by the Company through June of 2019, with such RSUs to be settled as soon as practicable after the Company’s trading window opens which is anticipated to occur in February 2019;

		
	iii.
	Treat Executive’s PSUs (as set forth in Exhibit A) in accordance with and subject to the terms set forth in Section 2 of this Separation Agreement; and

		
	iv.
	For the period commencing January 1, 2019 through the date that Executive attains age 65, the Company will make available to Executive group health insurance plan coverage through the Flex Executive Retiree 

PPO Plan (Anthem) at the Company’s expense; provided that Executive acknowledges and agrees that the Company shall report any taxable income arising in connection with, and Executive shall bear sole responsibility for any income tax liability he incurs as a result of, the provision of such health insurance coverage by the Company.
provided, further, that in the event that the Company determines in good faith that Executive has breached this Separation Agreement, including, but not limited to, Executive’s cooperation obligations set forth in Section 10 of this Separation Agreement and/or Executive’s representations to the Company set forth in Section 7 of this Separation Agreement, the Company shall have the option to exercise a “clawback” of the payments and benefits described above in Section 1(b)(i) and (ii) (the “Clawback Option”), pursuant to which Executive shall be required to re-pay to the Company any and all amounts provided to Executive under Section 1(b)(i) and (ii) above on or within ten (10) business days following the date that the Company provides written notice to Executive that it is exercising the Clawback Option.
		
	c.
	Payment of Vested Compensation.  In accordance with its standard practices, whether or not Executive agrees to this Separation Agreement, the Company will issue a payment to Executive in a gross amount, less applicable taxes and withholdings, to compensate him for any accrued and vested compensation as of the Separation Date to which he is entitled as of such date, except as otherwise set forth in this Separation Agreement, including, but not limited to, the bonuses described in Section 1(e) of this Separation Agreement and the outstanding equity compensation described in Sections 1(e) and 2 of this Separation Agreement, to which, for the avoidance of doubt, Executive is not entitled.

		
	d.
	Within thirty (30) days following the Separation Date, Executive will submit his final documented expense reimbursement statement reflecting all unreimbursed business expenses incurred through the Separation Date, if any, for which he seeks reimbursement.  The Company will reimburse his properly documented expenses pursuant to the Company’s policy and regular business practices.

		
	e.
	No Additional Separation Pay or Benefits.  Except as provided below, including with regard to Executive’s outstanding Company equity compensation awards, Executive shall not be entitled to any additional compensation or benefits in connection with his termination of employment with the Company, including, but not limited to, any quarterly or annual bonuses with respect to Executive’s employment with the Company before or after the Separation Date, and Executive hereby agrees to waive any rights, claims or entitlements with respect to any such bonuses.  In addition, Executive shall not be permitted to use the Company plane on a private or personal basis at any time, effectively immediately and including as of the date of this Separation Agreement.

2.    EQUITY COMPENSATION.  Executive has been granted time based and performance based equity compensation awards as provided in the applicable equity compensation grant forms issued to Executive during his employment with the Company.  The plans and grant agreements governing such awards are incorporated herein by reference.  Executive’s equity 

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compensation awards that are outstanding as of the Separation Date are listed on the Closing Statement labeled Exhibit A which is attached hereto and incorporated herein by reference.  Executive acknowledges that he is not entitled to any additional grants of equity compensation awards other than those set forth in Exhibit A.
		
	a.
	Executive acknowledges and agrees that other than with respect to Executive’s PSUs (as set forth in Exhibit A) as described in Section 2(b) below and the RSUs described above, all of Executive’s Company equity compensation awards shall cease to vest as of the Separation Date and any portion of the such equity compensation awards that are unvested as of the Separation Date shall be forfeited and cancelled for no consideration.

		
	b.
	The Company and Executive further agree that Executive’s separation from employment is voluntary and constitutes a “Retirement” as defined in the award agreements governing Executive’s PSUs (as set forth in Exhibit A), and that a pro-rata number of vested Company ordinary shares shall be issued to Executive upon the vesting of each such PSU award pursuant to the performance criteria set forth therein, with the number of ordinary shares that vest determined by multiplying the full number of ordinary shares that vest pursuant to the performance criteria by a fraction, which shall be (x) the number of complete months of continuous service as Company employee from the grant date of such PSU award to the Separation Date, divided by (y) the number of months from the grant date to the vesting date; provided, further, that if within twelve (12) months of the Separation Date, Executive violates the terms of this Agreement, a non-disclosure agreement with, or other confidentiality obligation owed to the Company, then the PSU award and all of the Company’s obligations and Executive’s rights under his PSUs shall terminate in accordance with their terms and the terms of the equity plan under which they were granted.

		
	c.
	Executive further acknowledges and agrees that upon release of any ordinary shares as provided in this Section 2 and pursuant to the PSUs, unless the Company withholds payroll taxes, Executive will be responsible for payroll taxes, which will be due and payable to the Company by Executive within three (3) business days of the vesting occurrence.

		
	d.
	Executive understands and agrees that he will not receive any grants of ordinary shares, stock, restricted stock or restricted shares, stock or share units, stock or share options, or other forms of equity from the Company in the future unless mutually agreed to by the parties in writing.

		
	e.
	Executive will forfeit, for no additional consideration, his Elementum profits interests awards that are unvested as of the Separation Date, but shall retain his Elementum interests that are vested as of the Separation Date.  Executive’s Elementum profits interests awards are set forth in Exhibit A.

3.    DEFERRED COMPENSATION.  Executive is a participant in the Company’s 2010 Deferred Compensation Plan (the “Deferred Compensation Plan”) in return for services to be performed in the future and subject to the terms and conditions outlined in the Deferred Compensation Plan documents.  Company contributions in the Deferred Compensation Plan 

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were credited to a brokerage account, and have been invested in various funds based on Executive’s elections.  As of the Separation Date, $18,858,018 of Executive’s Deferred Compensation Plan account will have vested.
Distributions of Executive’s vested Deferred Compensation Plan account balance, if any, will be made in accordance with the terms of the Deferred Compensation Plan.  Executive’s unvested Deferred Compensation Plan account balance shall be forfeited as of the Separation Date.
Executive acknowledges that he is not a participant in any other deferred compensation plan with the Company and that he is not entitled to any additional deferred compensation other than as stated in this Separation Agreement.
4.    COMPLETE RELEASE.  In consideration for the payments and benefits described in Sections 1 and 2 of this Separation Agreement, Executive and each of Executive’s heirs, executors, representatives, administrators, agents, and assigns (collectively, the “Releasor”) hereby forever and unconditionally releases the Company, together with its employees, partners, agents, shareholders, directors, officers, contractors, insurers and attorneys of any of them, (collectively, the “Releasors”) from any and all claims or demands, whether known or unknown, and whether asserted on an individual or class basis, which any of the Releasors has, may have, or may claim to have against any of them.  This complete release of all claims includes but is not limited to a complete release of any claims (including claims for attorneys’ fees) each Releasor has, may have, or may claim to have based on Executive’s employment with the Company or transition or separation from that employment, as well as any claims arising out of any contract, express or implied, any covenant of good faith and fair dealing, express or implied, any tort (including negligence by the Company or anyone else), and any federal, state or other governmental statute, regulation or ordinance relating to employment, employment discrimination, or the payment of wages or benefits including, but not limited to, those relating to qui tam, employment discrimination, termination of employment, payment of wages or provision of benefits, housing costs, costs relating to relocation and the purchase or sale of housing, Title VII of the Civil Rights Act of 1964 as amended, the Civil Rights Act of 1991, the Americans with Disabilities Act, the Employee Retirement Income Security Act, the Family and Medical Leave Act, the Fair Labor Standards Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act (“OWBPA”), the Worker Adjustment and Retraining Notification Act, the Consolidated Omnibus Budget Reconciliation Act, and the Occupational Safety and Health Act and/or their state law or local law equivalents.  Executive specifically waives any entitlement to any bonus, equity plan or other compensation not specifically set forth in this Separation Agreement.  Executive represents that he has not assigned to any other person any of such claims and that Executive has the full right to grant this release.  Notwithstanding any other provision herein, Executive is not waiving any claims, including under the Age Discrimination in Employment Act, that may arise after this Separation Agreement is executed nor any claims relating to the enforcement of this Separation Agreement.
Excluded from this release are a) any claims arising under the terms of this Separation Agreement by Executive; b) any indemnification claims arising under the Company’s directors’ and officers’ liability insurance or bylaws or this Separation Agreement (including the Indemnification Agreements, as described below); and c) any claims that may not be waived by 

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law, such as claims for workers’ compensation benefits, unemployment insurance benefits, challenges to the validity of Executive’s release of claims under the Age Discrimination in Employment Act of 1967, as amended, as set forth in this Separation Agreement, and the right to file a charge of discrimination with, or participate in an investigation conducted by, an administrative agency.  Executive is waiving, however, the right to any monetary recovery or other relief in connection with filing such a charge with the Equal Employment Opportunity Commission.
5.    CALIFORNIA RELEASE Executive acknowledges that he has read Section 1542 of the Civil Code of the State of California, which states in full:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
Despite the language of Section 1542, Executive waives any rights he has or may have under Section 1542 (or any similar provision of the laws of any other jurisdiction) and affirms that he is releasing all known and unknown claims that he has or may have against the Releasees.
6.    INSTITUTING ARBITRATION OR SUIT.  To the extent permitted by applicable law, the Releasor agrees not to institute any arbitration proceeding or lawsuit based on any claim stated to be released by the Releasors in this Separation Agreement.  If the Releasor or anyone on the Releasor’s behalf institutes any arbitration proceeding or lawsuit based on any claim stated to be released in this Separation Agreement, the Releasor will: (a) immediately take any and all actions necessary to effectuate the immediate dismissal of the lawsuit or arbitration proceeding; and (b) pay the Company and the other Releasees for any and all reasonable attorney’s fees and costs incurred as a result of or in connection with the lawsuit or arbitration proceeding, in each case to the extent permitted by applicable law.
7.    REPRESENTATIONS AND WARRANTIES.  Executive represents that he is, and all times while employed by the Company was, in compliance with the Company’s Code of Business Conduct and Ethics and is not aware of any errors or omissions in any Certification regarding Potential Conflicts of Interest or Directors’ and Officers’ Questionnaire previously provided by Executive to the Company.  Apart from payments due hereunder, Executive warrants and agrees that to his knowledge, The Company has paid Executive all wages, forms of compensation, and other monies due to Executive as of the date of execution of this Separation Agreement.  Executive further warrants and agrees that to his knowledge, all forms of compensation, wages, and other monies paid to Executive by the Company through the date of Executive’s execution of this Separation Agreement have been accurately calculated, have represented the proper amounts due to Executive, and have been based on the Company’s merit-based compensation system.  If Executive or someone on Executive’s behalf claims any entitlement to further compensation from the Company for any reason, Executive agrees that the Company is entitled to full offset of the amounts paid to Executive under this Separation Agreement to the full extent permitted by applicable law.

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8.    INDEMNIFICATION.  The Company acknowledges and agrees that those certain indemnification agreements made and entered into on May 6, 2009 by and between Executive and either Flextronics International Ltd. or Flextronics Corporation (as amended, the “Indemnification Agreements”) each remain in full force and effect in accordance with their terms and conditions.  Executive represents and warrants that he has not engaged in conduct pursuant to which he would not be entitled to indemnification under the Indemnification Agreements.
9.    MUTUAL NON-DISPARAGEMENT AND THIRD PARTY ASSISTANCE- In consideration for the covenants provided herein, and subject to Section 14 of this Separation Agreement, Executive agrees that Executive will not make any statement, oral or written, or perform any act or omission which is detrimental in any material respect to the reputation or goodwill of the Company.  The Company agrees that it will instruct its officers, senior executives and Board members not to (i) issue any press release or any other publicly issued statement, or statement to the media, that is detrimental in any material respect to the reputation or goodwill of Executive or (ii) make any statement, oral or written, or perform any act or omission which is detrimental in any material respect to the reputation or goodwill of Executive.  Executive agrees that Executive will not voluntarily counsel, assist, participate in, or encourage any persons in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against the Company without first providing written notice to the Company’s General Counsel at Flex Inc., 6201 America Center Drive, San Jose, California, 95002.  Executive and the Company agree that Executive’s or the Company’s compliance with a subpoena or other legally compulsive process, disclosure required pursuant to the Company’s Code of Business Conduct and Ethics, or participation as a witness in a lawsuit shall not violate the terms of this paragraph but further agree Executive and the Company will nevertheless each provide the other party written notice of such subpoena, other legally compulsive process, disclosure pursuant to the Company’s Code of Business Conduct and Ethics, or potential participation as a witness promptly after receiving notice of same, except where such notice is prohibited by applicable law.  This paragraph 9 is without prejudice to any rights Executive has under the Indemnification Agreements attached hereto as Exhibits B & C and in the event of any conflict between this provision and any terms of such agreements, the terms of such agreements shall govern.
10.    COOPERATION.  Executive will make himself reasonably available to the Company in connection with any claim, lawsuit, or proceeding, including, but not limited to, any regulatory proceeding, that relates to Executive’s conduct or duties at the Company or that are based on facts about which Executive obtained or retains personal knowledge while employed at the Company.  In return, the Company agrees to reimburse Executive for direct and reasonable out of pocket and documented expenses, including reasonable attorney’s fees, that are incurred by Executive in connection with cooperation provided by Executive pursuant to this Section and after the Separation Date, in each case in accordance with the Indemnification Agreements.  Should Executive be required to expend a significant amount of time providing such cooperation after the Separation Date, such time will be compensated at a reasonable hourly rate set by the Company in accordance with the Indemnification Agreements.  This paragraph 9 is without prejudice to any rights Executive has under the Indemnification Agreements attached hereto as 

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Exhibits B & C and in the event of any conflict between this provision and any terms of such agreements, the terms of such agreements shall govern.
11.    RETURN OF PROPERTY.  Executive agrees that, upon the Separation Date, Executive will return to the Company any and all documents relating to the Company or its business operations (and any and all copies thereof, whether in paper form or electronic form), computer equipment, badges, credit cards, and any other Company property in Executive’s possession, care, custody, or control.  Executive represents and agrees that Executive will not take any such documents or property from the control or premises of Company.  If Executive should come into possession of any Company documents or property at any time following the Separation Date, Executive agrees to return such documents or property to the Company immediately.  Notwithstanding the above, Executive may retain his laptop computer upon following this procedure: Executive will remove his personal information from the laptop, the Company will copy and retain the remaining Company related information from the laptop and then delete all Company information from the laptop and return the clean laptop to Executive for his personal use.  Executive may also retain his Company provided cellular phone, if any, (at his own cost going forward) after following procedures with IT to remove Company information from the phone.
12.    NON-DISCLOSURE.  Executive acknowledges and agrees the Company has provided Executive with valuable confidential information relating to the Company’s business, technology, plans, customers, potential customers, relationships, and personnel.  Executive acknowledges and agrees that he will remain bound by the confidentiality obligations set forth below.  Executive agrees that any original works of authorship, products, software, or applications that Executive created or developed while employed by the Company is the sole property of the Company.  Executive further acknowledges and agrees that Executive shall not disclose or use for any purpose any Confidential Information.  Confidential Information shall mean any and all proprietary or confidential information of the Company or any of its vendors, customers, or partners that is not known or otherwise disclosed to the public by others, including without limitation the following: (i) any and all technical information, including, without limitation, product data and specifications, formulae, source code, or other software information, test results, processes, inventions, research projects or product development and (ii) any cost information, profits, profit margins, sales information, costs, overhead, accounting and unpublished financial information, business plans, markets, marketing methods, vendor or customer lists, including without limitation, a vendor’s or customer’s specific needs, advertising and operating strategies.
13.    If Executive is subject to any subpoena or other form of legally compulsive process seeking to require Executive to disclose any information protected by this Separation Agreement, any other written agreement between Executive and the Company, any statute, or the common law, Executive will immediately provide written notice of same to the Company’s General Counsel at Flex Inc., 6201 America Center Drive, San Jose, California, 95002, except where such notice is prohibited under applicable law.
14.    PROTECTED ACTIVITY NOT PROHIBITED.  Executive understands that nothing in this Separation Agreement, or any other agreement or policy with or by the Company, will in any 

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way limit or prohibit Executive from engaging in any Protected Activity.  For purposes of this Separation Agreement, “Protected Activity” will mean communicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”).  Executive understands that in connection with such Protected Activity, Executive is permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving authorization from, the Company.  Notwithstanding the foregoing, Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information under any confidentiality agreement with the Company to any parties other than the Government Agencies.  Executive further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications.  Any language in the Confidentiality Agreement, or any other agreement or policy of the Company, regarding Executive’s right to engage in Protected Activity that conflicts with, or is contrary to, this paragraph is superseded by this provision.  In addition, pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal.  In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.
15.    BINDING AGREEMENT.  This Separation Agreement will be binding upon Executive and the Company and their respective heirs, administrators, trustees, representatives, executors, successors, and assigns.
16.    REVIEW.  Executive understands that Executive has twenty-one (21) days in which to review and consider this Separation Agreement before signing it.  Executive understands Executive may use as much or as little of this twenty-one (21)-day period as Executive wishes.  Executive is encouraged and advised to consult an attorney before signing this Separation Agreement.  Executive agrees that any changes Executive and the Company agree to make to this Separation Agreement, whether material or not, do not restart or extend this twenty-one (21)-day review period.  By executing this Separation Agreement, Executive acknowledges Executive has read this Separation Agreement in its entirety, understands all of its terms, knowingly, freely and voluntarily assents to all of this Separation Agreement’s terms and conditions including, without limitation, the waiver, release and covenants contained in it, was afforded a period of at least twenty-one (21) days in which to review and consider this Separation Agreement, is signing this Separation Agreement in exchange for good and valuable consideration, and is not waiving or releasing rights or claims that may arise after signing this Separation Agreement.

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17.    REVOCATION.  If Executive decides to accept and sign this Separation Agreement, Executive will have seven (7) days from the date of execution in which to revoke his acceptance.  Executive understands any such revocation will not be effective unless Executive delivers a written notice of such revocation to Flextronies, c/o General Counsel, 6201 America Center Drive, San Jose, California, 95002, prior to the expiration of seven (7) days after Executive executes this Separation Agreement.  Executive understands this Separation Agreement will not become effective or enforceable until the seven (7) days have elapsed without Executive having revoked Executive’s acceptance of this Separation Agreement.  The “Effective Date” of this Separation Agreement shall be the day following the seven (7)-day revocation period, provided that Executive does not revoke his acceptance of this Separation Agreement during such seven (7)-day revocation period.
18.    ENTIRETY.  This is the entire agreement between the Executive and the Company regarding Executive’s separation from the Company and the other matters addressed herein and supersedes all prior agreements between them regarding same, other than those agreements referenced herein.  In executing this Separation Agreement, Executive is not relying on any representations or promises not explicitly contained in this Separation Agreement.  However, this Separation Agreement does not release Executive of his continuing obligations under contract or law to preserve the confidentiality of the Company’s Confidential information or the confidential and proprietary information of the Company’s customers.
19.    ARBITRATION.  Executive and Company agree that any and all disputes between them, including but not limited to any disputes arising out of or relating to this Separation Agreement, the claims purported to be released by Executive in this Separation Agreement, Executive’s employment with Company or the transition from or the termination of any such employment shall be settled by binding arbitration in San Jose, California administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes, and that judgment upon the award rendered by the arbitrator(s) may be entered in any court with jurisdiction.  The arbitrator will have the authority to award attorney’s fees to the prevailing party, if the arbitrator finds that the non-prevailing party has acted in bad faith.  Notwithstanding any of the foregoing, any other provision of this Separation Agreement, or any provision of any other agreement:
		
	a.
	A court of competent jurisdiction shall have the power to maintain the status quo pending the arbitration of any dispute, and neither this Section nor any other agreement shall require the arbitration of an application for emergency or temporary injunctive relief by either party pending arbitration; provided, however, that the remainder of any such dispute beyond the resolution of any application for emergency or application for temporary injunctive relief, if such applications are made, shall be subject to arbitration; and

		
	b.
	This Section shall not require the arbitration of: (i) claims by McNamara for workers’ compensation or unemployment insurance (an exclusive government-created remedy exists for these claims); (ii) claims which could not have been litigated in court or before any administrative proceeding under applicable federal, state, or local law (e.g., claims barred by limitations); or (iii) claims for indemnification or advancement of expenses 

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pursuant to the Company’s directors’ and officers’ liability insurance or bylaws or this Separation Agreement (including the Indemnification Agreements, attached as Exhibits B and C).
20.    CHOICE OF LAW, VENUE, MODIFICATION, AND EXECUTION.  This Separation Agreement will be construed in accordance with and governed by the laws of the State of California.  Executive and the Company agree that the exclusive venue for resolving any dispute not submitted to arbitration for any reason shall be the state and federal courts located in San Jose, California, unless a different venue is required by applicable law or agreement.  Executive understands that once this Separation Agreement is executed, only William Watkins, Chair of the Company’s Compensation Committee, or his successor will have the authority to modify this Separation Agreement on behalf of the Company, and that he or she will have such authority only when acting in writing.  In this connection, the parties agree this Separation Agreement will not be modified or amended except by a written instrument(s), signed by both parties, with the Company’s Chair of the Board or Chair of the Compensation Committee signing for the Company.  This Separation Agreement may be executed in multiple counterparts.
21.    NON-ADMISSION OF LIABILITY.  By entering into this Separation Agreement, neither party admits they have done anything wrong.
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[Signature Page Follows]

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ACCEPTED AND AGREED:

	
		
	 
	/s/ PAUL BALDASSARI

	 
	DELEGATE:  PAUL BALDASSARI, CHRO 

	 
	William Watkins 

	 
	Chair of Compensation Committee 

	 
	Flex Ltd.

	 
	 

	 
	12/24/2018

	 
	Date

I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THE FOREGOING AGREEMENT, THAT I UNDERSTAND ALL OF ITS TERMS, THAT 1 UNDERSTAND THAT IT CONTAINS A COMPLETE RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS AND AN ARBITRATION AGREEMENT, AND THAT I AM ENTERING INTO IT VOLUNTARILY.  I HAVE BEEN ADVISED TO CONSULT AN ATTORNEY, BEEN GIVEN 21 DAYS TO CONSIDER THE AGREEMENT AND BEEN INFORMED THAT I MAY REVOKE THIS SEPARATION AGREEMENT WITHIN 7 DAYS OF SIGNING IT.
	
		
	 
	/s/ Michael M. McNamara

	 
	Michael M. McNamara

	 
	 

	 
	12/24/2018

	 
	Date

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EXHIBIT A - CLOSING STATEMENT

	
									
	EXHIBIT A:  SUMMARY OF EQUITY COMPENSATION AWARDS

	Grant ID
	Grant Date
	Grant  
Type
	Number  
of  
Shares  
Granted
	Units 
Vested (as of 
12/31(18)
	Units  
Unvested (as of 12/31/18)
	Completion  
Months  
Since Grant  
Date
	RSUs to  
vest  
accelerated  
Feb 2019
	Prorated %

	R50610150001
	06/10/2015
	RSU
	359,504
	269,628
	89,876
	N/A
	89,876
	N/A

	RS0614160001
	06/14/2016
	RSU
	366,615
	183,307
	183,308
	N/A
	91,654
	N/A

	RS0629170001
	06/29/2017
	R5U
	336,597
	84,149
	252,448
	N/A
	84,149
	N/A

	RS061918007
	06/19/2018
	RSU
	329,225
	0
	329,225
	N/A
	82,306
	N/A

	FCF0614160001 *
	06/14/2016
	PSU
	183,308
	0
	183,308
	30 **
	N/A
	83.33%

	MRS0614160001 *
	06/14/2016
	P5U
	183,307
	0
	183,307
	30 **
	N/A
	83.33%

	FCF0629170001 *
	06/29/2017
	PSU
	168,298
	0
	168,298
	18 ***
	N/A
	50.00%

	MR50629170001 *
	06/29/2017
	PSU
	168,299
	0
	168,299
	18 ***
	N/A
	50.00%

	MRS06191807 *
	06/19/2018
	PR/
	329,225
	0
	329,225
	6 ^
	N/A
	16.67%

	 
	 
	Totals
	2,424,378
	537,084
	1,887,294
	 
	347,985
	 

* Performance-based shares in which vesting is based on the achievement of certain business and sack price metrics. Payout of these shares range from 0% to 200% of target shares. Will be prorated per agreement.
** Vest date for PSU awards granted on 6/14/2016 is 6/14/2019.
*** Vest date for PSU awards granted on 6/29/2017 is 6/29/2020.
^Vest date for PSU) awards granted on 6/19/2018 is 6/19/2021.

	
							
	EXHIBIT A:  SUMMARY OF ELEMENTUM PROFITS INTERESTS

	Date of  
grant
	Number of  
shares granted
	Vesting start 
date
	Vesting end  
date
	Number of shares vested (as of  
12/31/18)
	Number of shares unvested (as of 12/31/18)
	WDID

	10/15/2015
	1,339,297
	10/15/2015
	10/14/2019
	1,004,473
	334,824
	500000

	03/23/2017
	780,000
	3/23/2017
	3/22/2021
	195,000
	585,000
	500000

	 
	 
	 
	 
	 
	 
	 

	Totals
	2,119,297
	 
	 
	1,199,473
	919,824
	 

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			Exhibit 10.1

		

		

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			CUBIC CORPORATION
		

		
			2015 INCENTIVE AWARD PLAN
		

		
			PERFORMANCE RESTRICTED STOCK UNIT AWARD GRANT NOTICE AND
PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT
		

		
			Cubic Corporation, a Delaware corporation (the “Company”), pursuant to its 2015 Incentive Award Plan (the “Plan”), hereby grants to the participant listed below (“Participant”), an award of performance based restricted stock units (“Performance Restricted Stock Units” or “PRSUs”) with respect to the number of shares of the Company’s Common Stock (the “Shares”) indicated below. Each PRSU is hereby granted in tandem with a corresponding dividend equivalent, as further described in Article II of the Performance Restricted Stock Unit Agreement (the “Dividend Equivalents”).  This award for Performance Restricted Stock Units and the corresponding Dividend Equivalents (this “Award”) is subject to all of the terms and conditions as set forth herein, in the Performance Restricted Stock Unit Award Agreement attached hereto as Exhibit A (the “Performance Restricted Stock Unit Agreement”) and in the Plan, each of which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Performance Restricted Stock Unit Agreement.
		

			
					
						Participant:

					
					
						    

					
					
						%%FIRST_NAME%-% %%MIDDLE_NAME%-% %%LAST_NAME%-%

				
	
					
						Grant Date:

					
					
						 

					
					
						%%OPTION_DATE,'Month DD, YYYY'%-%

				
	
					
						Target Number of PRSUs (as adjusted pursuant to Article II and Section 4.2):

					
					
						 

					
					
						%%TOTAL_SHARES_GRANTED,'999,999,999'%-%

				
	
					
						Maximum % of PRSUs (as adjusted pursuant to Article II and Section 4.2):

					
					
						 

					
					
						250% of Target

				
	
					
						Distribution Schedule:

					
					
						 

					
					
						Subject to the terms of the Performance Restricted Stock Unit Agreement, the PRSUs (and their corresponding Dividend Equivalents) shall be distributable in accordance with Section 1.1 of the Performance Restricted Stock Unit Agreement.

				
	
					
						Vesting Schedule:

					
					
						 

					
					
						Subject to the terms of the Performance Restricted Stock Unit Agreement, the PRSUs shall vest as set forth on Exhibit B to this Grant Notice.

				

		
			 
		

		
			By electronically accepting this Grant Agreement, Participant agrees to be bound by the terms and conditions of the Plan, the Performance Restricted Stock Unit Agreement and this Grant Notice.  In addition, Participant explicitly acknowledges and agrees to be bound by the Restrictive Covenants set forth in Section 3.6 of the Performance Restricted Stock Unit Agreement.  Participant has reviewed the Performance Restricted Stock Unit Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice, the Performance Restricted Stock Unit Agreement and the Plan.  Participant has been provided with a copy or electronic access to a copy of the prospectus for the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board (or any Committee to which administration of the Plan has been delegated by the Board) upon any questions arising under the Plan, this Grant Notice or the Performance Restricted Stock Unit Agreement.  The Award is subject to the terms and conditions of the Plan which are incorporated herein by reference. In the event of any inconsistency between the Plan and the Performance Restricted Stock Unit Agreement, the terms of the Plan shall control.
		

		
			Participant acknowledges that his or her acceptance of the terms and conditions of the Plan, the Performance Restricted Stock Unit Agreement and this Grant Notice by his or her electronic acceptance of the Grant Agreement is a condition to the receipt of this Award.  As a result, unless otherwise determined by the Board (or any Committee to which administration of the Plan has been delegated by the Board), in the event Participant does not electronically
		

		
			
		

		
			

		 

		

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			accept this Grant Notice within ninety (90) days of the Grant Date, this Award shall be forfeited and Participant shall have no further rights thereto.
		

		
			Participant acknowledges that Section 4.5 of the Performance Restricted Stock Unit Agreement amends the governing law of Participant’s Invention & Secrecy Agreement (as defined in the Performance Restricted Stock Unit Agreement) and hereby agrees to such amendment.
		

		
			 
		

		
			 
		

		
			

		 

		

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			EXHIBIT A
		

		
			 
		

		
			TO PERFORMANCE RESTRICTED STOCK UNIT AWARD GRANT NOTICE
		

		
			 
		

		
			PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT
		

		
			Pursuant to the Performance Restricted Stock Unit Award Grant Notice (the “Grant Notice”) to which this Performance Restricted Stock Unit Award Agreement (this “Agreement”) is attached, the Company has granted to Participant the right to receive the number of PRSUs set forth in the Grant Notice, and their corresponding Dividend Equivalents pursuant to Article II, subject to all of the terms and conditions set forth in this Agreement, the Grant Notice and the Plan.
		

		
			ARTICLE I
		

		
			AWARD OF PERFORMANCE RESTRICTED STOCK UNITS
		

		
			1.1        Award of Performance Restricted Stock Units.
		

		
			(a)         Award. In consideration of Participant’s continued employment or service with the Company or any Affiliate thereof and for other good and valuable consideration, the Company hereby grants to Participant the right to receive the number of PRSUs set forth in the Grant Notice and their corresponding Dividend Equivalents pursuant to Article II, subject to all of the terms and conditions set forth in this Agreement, the Grant Notice and the Plan. Prior to actual issuance of any Shares, the PRSUs, the Dividend Equivalents and the Award represent an unsecured obligation of the Company, payable only from the general assets of the Company.
		

		
			(b)         Vesting. The PRSUs subject to the Award shall vest in accordance with the Vesting Schedule set forth in Exhibit B to the Grant Notice. Unless and until the PRSUs have vested in accordance with the Vesting Schedule set forth in the Grant Notice, Participant will have no right to any distribution with respect to such PRSUs.  Unless otherwise provided in Exhibit B to the Grant Notice, in the event of Participant’s Termination of Service prior to the vesting of all of the PRSUs, any unvested PRSUs will terminate automatically without any further action by the Company and be forfeited without further notice and at no cost to the Company.
		

		
			(c)         Distribution of PRSUs.
		

		
			(i)          Shares of Common Stock shall be distributed to Participant (or in the event of Participant’s death, to his or her estate) with respect to Participant’s vested PRSUs within ten (10) days following the date on which such PRSUs vest as specified in the Vesting Schedule set forth in Exhibit B to the Grant Notice (or, in the event the vesting date is the date of a Change in Control, the PRSUs (and their corresponding Dividend Equivalents) shall be settled immediately prior to such Change in Control), subject to the terms and provisions of the Plan and this Agreement.
		

		
			(ii)         All distributions of the PRSUs shall be made by the Company in the form of whole shares of Common Stock.
		

		
			(iii)       Neither the time nor form of distribution of Common Stock with respect to the PRSUs and the Dividend Equivalents may be changed, except as may be permitted by the Board (or any Committee to which administration of the Plan has been delegated by the Board) in accordance with the Plan and Section 409A of the Code and the Treasury Regulations thereunder.
		

		
			 
		

		
			 
		

		
			

		 

		

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			(d)         Generally. Shares issued under the Award shall be issued to Participant or Participant’s beneficiaries, as the case may be, at the sole discretion of the Board (or any Committee to which administration of the Plan has been delegated by the Board), in either (i) uncertificated form, with the Shares recorded in the name of Participant in the books and records of the Company’s transfer agent with appropriate notations regarding the restrictions on transfer imposed pursuant to this Agreement; or (ii) certificate form.  In no event will fractional shares be issued upon settlement of the Award.  In lieu of any fractional Share, the Company shall make a cash payment to Participant equal to the Fair Market Value of such fractional Share on the date the PRSUs and the Dividend Equivalents are settled pursuant to this Section 1.1.
		

		
			1.2        Tax Withholding.
		

		
			(a)         The Company shall not be obligated to deliver any certificate representing Shares issuable with respect to the PRSUs or any cash payment in respect of the Dividend Equivalents to Participant or his or her legal representative unless and until Participant or his or her legal representative shall have paid or otherwise satisfied in full the amount of all federal, state, local and foreign taxes applicable with respect to the taxable income of Participant resulting from the vesting of the PRSUs or the Dividend Equivalents, the distribution of the Shares issuable with respect thereto, the settlement of the Dividend Equivalents, or any other taxable event related to the PRSUs or the Dividend Equivalents (the “Tax Withholding Obligation”).
		

		
			(b)         Unless Participant elects to satisfy the Tax Withholding Obligation by some other means in accordance with clause (c) below, prior to the time the Tax Withholding Obligation arises, Participant’s acceptance of this Award constitutes Participant’s instruction and authorization to the Company to, and the Company shall, withhold a net number of vested Shares otherwise issuable pursuant to the PRSUs having a then-current Fair Market Value not exceeding the amount necessary to satisfy the Tax Withholding Obligation of the Company and its Affiliates with respect to the vesting or distribution of the PRSUs based on the minimum applicable statutory withholding rates (or such higher rate as may be determined by the Administrator, which higher rate may not exceed the maximum individual statutory tax rate in the applicable jurisdiction at the time of such withholding (or such other rate as may be required to avoid the liability classification of the applicable award under generally accepted accounting principles in the United States of America), provided, that, such Shares shall be rounded up to the nearest whole Share to the extent rounding up to the nearest whole share does not result in the liability classification of the applicable Award under generally accepted accounting principles in the United States of America).  In the event Participant’s Tax Withholding Obligation will be satisfied under this Section 1.2(b), then the Company may elect to instruct any brokerage firm determined acceptable to the Company for such purpose to sell on Participant’s behalf a whole number of shares from those Shares issuable to Participant upon settlement of the PRSUs as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy Participant’s Tax Withholding Obligation with respect to the vesting or distribution of the PRSUs.  Participant’s acceptance of this Award constitutes Participant’s instruction and authorization to the Company and such brokerage firm to complete the transactions described above, including the transactions described in the previous sentence, as applicable.  Any Shares to be sold at the Company’s direction through a broker-assisted sale will be sold on the day the Tax Withholding Obligation with respect to the vesting or distribution of the PRSUs arises or as soon thereafter as practicable.  The Shares may be sold as part of a block trade with other participants of the Plan in which all participants receive an average price.  Participant will be responsible for all broker’s fees and other costs of sale, and Participant agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale. To the extent the proceeds of such sale exceed Participant’s Tax Withholding Obligation with respect to the vesting or distribution of the PRSUs, the Company agrees to pay such excess in cash to Participant as soon as
		

		
			
		

		
			

		 

		

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			practicable. Participant acknowledges that the Company or its designee is under no obligation to arrange for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy Participant’s Tax Withholding Obligation.
		

		
			(c)         At any time not less than five (5) business days before any Tax Withholding Obligation arises, Participant may elect to satisfy the Tax Withholding Obligation by delivering to the Company an amount that the Company determines is sufficient to satisfy the Tax Withholding Obligation in one or more of the forms specified below:
		

		
			(i)          by the deduction of such amount from other compensation payable to Participant;
		

		
			(ii)         by tendering vested Shares owned by Participant having a then-current Fair Market Value not exceeding the amount necessary to satisfy the Tax Withholding Obligation of the Company and its Affiliates based on the minimum applicable statutory withholding rates (or such higher rate approved by the Administrator, which rate may not exceed the maximum individual statutory tax rate in the applicable jurisdiction at the time of such withholding (or such other rate as may be required to avoid the liability classification of the applicable award under generally accepted accounting principles in the United States of America) and, to the extent such Shares were acquired by the Participant from the Company as compensation, the Shares must have been held for the minimum period required by applicable accounting rules to avoid a charge to the Company’s earnings for financial reporting purposes, provided, that, such Shares shall be rounded up to the nearest whole Share to the extent rounding up to the nearest whole share does not result in the liability classification of the applicable Award under generally accepted accounting principles in the United States of America);
		

		
			(iii)       through the delivery of a notice that Participant has placed a market sell order with a broker acceptable to the Company with respect to the Shares issuable pursuant to the PRSUs then vesting and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company or its Affiliate with respect to which the Tax Withholding Obligation arises in satisfaction of such obligation; provided that payment of such proceeds is then made to the Company or the applicable Affiliate at such time as may be required by the Board (or any Committee to which administration of the Plan has been delegated by the Board), but in any event not later than the settlement of such sale; or
		

		
			(iv)        in any combination of the foregoing.
		

		
			(d)         To the maximum extent permitted by applicable law, the Company further has the authority to deduct or withhold such amount as is necessary to satisfy any Tax Withholding Obligation from other compensation payable to Participant with respect to any taxable event arising from vesting of the PRSUs or the Dividend Equivalents, the receipt of the Shares upon settlement of the PRSUs or the settlement of the Dividend Equivalents.
		

		
			ARTICLE II
		

		
			DIVIDEND EQUIVALENTS
		

		
			2.1        Grant of Dividend Equivalents.  The Company hereby grants to Participant an award of Dividend Equivalents as set forth in this Article II (the “Dividend Equivalents”), subject to all of the terms and conditions in this Agreement and the Plan.  The Dividend Equivalents hereunder shall remain outstanding from the Grant Date through the earlier to occur of (a) the termination or forfeiture for any reason of the PRSU to which such Dividend Equivalent corresponds, or (b) the delivery to Participant of
		

		
			
		

		
			

		 

		

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			the shares of Common Stock underlying the PRSU to which such Dividend Equivalent corresponds.  Participant shall not be entitled to any payment under a Dividend Equivalent with respect to any dividend with a record date that occurs prior to the Grant Date or after the termination of such PRSU for any reason, whether due to payment, forfeiture or otherwise.  If any PRSU linked to a Dividend Equivalent fails to vest and is forfeited for any reason, then (a) the linked Dividend Equivalent shall be forfeited as well, (b) any amounts otherwise payable in respect of such Dividend Equivalent shall be forfeited without payment, and (c) the Company shall have no further obligations in respect of such Dividend Equivalent.
		

		
			2.2        Payment of Dividend Equivalents.  Dividend Equivalents shall be paid in cash only on the number of shares of Common Stock underlying the PRSUs that vest in accordance with this Agreement by determining the sum of the cash dividends paid or payable on such number of shares of Common Stock with respect to each record date that occurs between the Grant Date and the date on which the PRSUs are settled pursuant to Section 1.1(c) (without any interest or compounding).  The payment of cash in settlement of the Dividend Equivalents shall occur at the same time as the vested PRSUs to which such Dividend Equivalents correspond are settled pursuant to Section 1.1(c).
		

		
			2.3        Separate Payments.  Dividend Equivalents and any amounts that may become distributable in respect thereof shall be treated separately from the PRSUs and the rights arising in connection therewith for purposes of the designation of time and form of payments required by Section 409A of the Code.
		

		
			ARTICLE III
		

		
			RESTRICTIONS
		

		
			3.1        Award and Interests Not Transferable. This Award, including the PRSUs and the Dividend Equivalents awarded hereunder, may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the Shares issuable pursuant to the Award have been issued, and all restrictions applicable to such Shares have lapsed. This Award and the rights and privileges conferred hereby, including the PRSUs and the Dividend Equivalents awarded hereunder, shall not be liable for the debts, contracts or engagements of Participant or his or her successors in interest and shall not be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence.
		

		
			3.2        Rights as Stockholder. Neither Participant nor any person claiming under or through Participant shall have any of the rights or privileges of a stockholder of the Company in respect of any Shares issuable hereunder unless and until certificates representing such Shares (which may be in uncertificated form) will have been issued and recorded on the books and records of the Company or its transfer agents or registrars, and delivered to Participant (including through electronic delivery to a brokerage account). After such issuance, recordation and delivery, Participant shall have all the rights of a stockholder of the Company, including with respect to the right to vote the Shares and the right to receive any cash or share dividends or other distributions paid to or made with respect to the Shares.
		

		
			3.3        Trading Restrictions.  The Company may establish periods from time to time during which Participant’s ability to engage in transactions involving the Company’s Common Stock is subject to specific restrictions (“Restricted Periods”).  Participant may be subject to restrictions giving rise to a Restricted Period for any reason that the Company determines appropriate, including, restrictions generally applicable 
		

		
			
		

		
			

		 

		

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			to employees or groups of employees or restrictions applicable to Participant during an investigation of allegations of misconduct or conduct detrimental to the Company or any Affiliate by Participant.
		

		
			3.4        Award Subject to Clawback.  This Award, including the PRSUs and the Dividend Equivalents awarded hereunder, and any Shares issuable upon vesting of the PRSUs or the cash issuable upon settlement of the Dividend Equivalents, are subject to forfeiture, recovery by the Company or other action pursuant to, in addition to the provisions set forth in Section 3.6 of this Agreement, any clawback or recoupment policy which the Company may adopt from time to time pursuant to laws or regulations, including without limitation, any such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by applicable law.
		

		
			3.5        Conditions to Issuance of Shares or Settlement of Award.  The Company shall not be required to issue or deliver any Shares issuable upon the vesting of the PRSUs or settle the Dividend Equivalents prior to the fulfillment of all of the following conditions:  (a) the admission of the Shares to listing on all stock exchanges on which such Shares are then listed, (b) the completion of any registration or other qualification of the Shares under any state or federal law or under rulings or regulations of the U.S. Securities and Exchange Commission or other governmental regulatory body, which the Board (or any Committee to which administration of the Plan has been delegated by the Board) shall, in its sole and absolute discretion, deem necessary and advisable, (c) the obtaining of any approval or other clearance from any state or federal governmental agency that the Board (or any Committee to which administration of the Plan has been delegated by the Board) shall, in its absolute discretion, determine to be necessary or advisable, (d) the lapse of any such reasonable period of time following the date the PRSUs vest as the Board (or any Committee to which administration of the Plan has been delegated by the Board) may from time to time establish for reasons of administrative convenience, and (e) the receipt by the Company of full payment of any applicable withholding tax in any manner permitted under Section 1.2 above.
		

		
			3.6        Restrictive Covenants.
		

		
			(a)         Forfeiture for Violation of Restrictive Covenants.  The grant of the PRSUs provided herein and Participant’s agreement to the Restrictive Covenants (as defined below) are intended to be mutually dependent promises and in the event Participant breaches or threatens to breach the Restrictive Covenants, then to the greatest extent permitted by applicable law: (i) PRSUs that have not yet been settled (whether vested or unvested) shall immediately be cancelled; (ii) any Shares issued upon settlement of the PRSUs during the time period that is twelve (12) months prior to and twelve (12) months following Participant’s Termination of Service that have not yet been sold by Participant shall be forfeited back to the Company for no consideration; and (iii) if Participant received Shares upon settlement of the PRSUs during the time period that is twelve (12) months prior to and twelve (12) months following Participant’s Termination of Service and subsequently sold the received Share(s), any gain represented by the fair market value of the Shares issued upon settlement of the PRSUs on the settlement date multiplied by the number of Shares issued to Participant upon settlement of the PRSUs shall be paid by Participant to the Company, in cash, without regard to any market price decrease or increase subsequent to the settlement of the PRSUs.
		

		
			(b)         Certain Covenants.  Participant acknowledges that, to assist Participant in the performance of Participant’s duties, the Company agrees to provide and shall provide and has provided Participant with Confidential Information (as defined below) and materials.  Due to the sensitive nature of this Confidential Information, Participant acknowledges that the Company has legitimate business and competitive interests and legal rights to require non-disclosure of the Confidential Information to other companies and/or individuals and to require that the Confidential Information be used only for the benefit
		

		
			
		

		
			

		 

		

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			of the Company.  Therefore, in order to protect the Company’s Confidential Information and the Company’s business goodwill and competitive position, and in exchange for the Company providing Participant the consideration set forth herein, and in order to protect the value of the equity-based compensation provided to Participant in this Agreement, Participant agrees:
		

		
			(i)          At any time during the term of Participant’s service to the Company and thereafter for so long as such Confidential Information remains confidential, other than by reason of its wrongful disclosure (whether directly or indirectly) by Participant, Participant will not use, disclose or allow to be disclosed to any person, firm, or corporation, the Company’s Confidential Information, unless previously authorized by the Company for use in the pursuit of Company business;
		

		
			(ii)         During the term of Participant’s service to the Company (which for purposes of this Section shall be deemed to include any period for which Participant continues to be paid by the Company following termination or resignation) and for a period of twelve (12) months following Participant’s termination of service, whether voluntary or involuntary, Participant will not, anywhere in the world, directly or indirectly, compete with any portion of the Business (as defined below) of the Company in any way, or act as an officer, director, employee, consultant, lender, partner, trustee, member, shareholder, or agent of any person or entity that is engaged in any business in competition with the Business as now conducted by the Company or its Affiliates or in which the Company or its Affiliates becomes engaged during the term of Participant’s service to the Company, including, without limitation, any member of the Competitive Group.  Notwithstanding the foregoing, this clause (ii) shall not (A) preclude Participant from going to work for a separate business unit of any member of the Competitive Group that is not engaged in the Business, or (B) apply to services rendered by Participant in California after the date Participant’s service by the Company terminates (which for purposes of this Section shall be deemed to include any period for which Participant continues to be paid by the Company following termination or resignation); and
		

		
			(iii)       Both during Participant’s service to the Company and for a period of twelve (12) months following Participant’s termination of service, whether voluntary or involuntary, Participant will not: (A) directly or indirectly solicit, entice, induce or attempt to induce or influence any employee or independent contractor of the Company to terminate or alter his, her or its relationship with the Company; and (B) provide any information about the Company’s employees or independent contractors to any other person for the purpose of assisting any third party to solicit the Company’s employees for outside employment.
		

		
			(c)         Use of Certain Information.  Participant shall not knowingly use in his or her work for the Company, any ideas, processes, code, inventions, improvements, developments and discoveries subject to any right or obligation of a third party, including trade secrets, patents, copyrights, trademarks, or open source obligations.
		

		
			(d)         Business Opportunities.  Participant will promptly disclose to the Company any business opportunity of which Participant becomes aware during his/her employment or service to the Company that relates to any products or services planned, under development, developed, produced or marketed by the Company.  Participant will not take advantage of or divert any such opportunity for his/her (or any other person or entity) own gain, profit or benefit, without the prior written consent of the Company.
		

		
			(e)         Company Materials.  All Company Materials are the Company’s property and may not be copied or removed from the Company’s premises (physically or electronically), unless done for the 
		

		
			
		

		
			

		 

		

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			sole benefit of the Company as part of Participant’s job responsibilities or expressly approved by an authorized representative of the Company, for the benefit of the Company.
		

		
			(f)         Return of Company Materials.  Immediately upon the Participant’s Termination of Service for any reason, or upon Company’s request at any other time, Participant will deliver to Company all Company Materials.  Participant shall not retain, copy, or remove (either physically or electronically) any Company Materials from Company premises, computers, or other electronic equipment or storage devices.
		

		
			(g)         Definitions.  For purposes of this Section 3.6:
		

		
			(i)          The term “Business” shall mean the business of providing integrated payment and information solutions and related services for intelligent travel applications to transportation and traffic management entities, as well as providing mission-centered training systems and services, C4ISR systems, intelligence, and cyber solutions for the United States and allied nations.
		

		
			(ii)         The term “Confidential Information” or “Company Confidential Information” means all forms and types of business, technical, financial, economic, sales, marketing or customer information of the Company that Participant receives, develops or has access to as a result of his/her employment or service to the Company, which has not been previously disclosed to the general public by an authorized Company representative or customer, regardless of whether such information would be deemed a trade secret under applicable law.  Confidential Information shall be interpreted broadly and includes, but is not limited to, business strategies and plans, financial information, projections, pricing and cost information, proposals, lists of present or future customers, all information obtained from or about current or future customers, supplier lists and information, plans and results of research and development, reports, manuals, policies, personnel information (other than Participant’s own information), evaluations, designs, specifications, blueprints, drawings, patterns, compilations, formulas, programs, software, prototypes, methods, processes, devices, procedures, “Inventions,” special techniques of any kind peculiar to the Company’s operations, or other confidential or proprietary information or intellectual property related to the Business, products, services, or plans of the Company, whether tangible or intangible, and whether stored or memorialized physically, electronically, photographically, or in Participant’s memory.  This specifically includes all information the Company receives from customers or other third parties that is not generally known to the public or is subject to a confidentiality agreement.
		

		
			(iii)       The term “Company” means the Company, its subsidiaries and its Affiliates.
		

		
			(iv)        The term “Company Materials” means all forms of written or recorded information, data, or materials, including, but not limited to, documents, files, memoranda, notes, lists, as well as photographs, drawings, blueprints, and schematics (and all copies thereof) relating to the Company’s business, customers, suppliers, products or services, whether in tangible or electronic form (including items stored in computer memories, computer disks, thumb drives, CDs, or any other electronic means), whether made or compiled by Participant or others.
		

		
			(v)         The term “Competitive Group” includes, but is not limited to, the following entities: ACS, Accenture, Active Exhaust, BAE Systems, Bering Sea Environmental, Boeing, Booz Allen Hamilton, DRS Training & Control Systems, Elbit Systems, Engility, General Dynamics, HP Enterprise Services, Information Assurance Specialist, IBM, Israeli Aircraft Industries, Kapsch-Group Beteiligungs, L-3, LG, Leidos, Lockheed Martin, Northrup Grumman, Raytheon, Rockwell Collins, Royal Imtech, Ruag, SAIC, Saab Training Systems, Scheidt and Bachmann, Thales, Xerox, Siemens, TransCore, 
		

		
			
		

		
			

		 

		

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			Trapeze Group, IVU Traffic Technologies, Indra Sistemas, Init AG (and U.S. subsidiaries), Econolite Group, , and Q-Free ASA (and U.S. subsidiaries), as well as any entity that is a successor to, acquires a majority of the assets of, or merges in whole or in part with any of the foregoing entities.
		

		
			(vi)        The term “Inventions” includes, but is not limited to, any creation, discovery, development, idea, technique, formula, method, process, use, apparatus, product, device, machine, composition, code, design, program, technical data, configuration of any kind, or improvements to any of these things, which is discovered, conceived, developed, made or produced by Participant (alone or in conjunction with others), whether or not patentable or registerable under patent, copyright or similar statutes.
		

		
			(vii)       The term “Restrictive Covenants” means the restrictions set forth in this Section 3.6 or, if Participant is a party to an employment agreement with the Company, which agreement sets forth provisions regarding Confidential Information, non-solicitation or non-competition that are more restrictive than the provisions set forth in this Section 3.6, the provisions set forth in such employment agreement.
		

		
			(h)         Reasonableness of Restrictions.  Participant has carefully read and considered the Restrictive Covenants, and, having done so, agrees and acknowledges that the Restrictive Covenants limit Participant’s ability to engage in competition during the period provided for above.  Participant expressly warrants and represents that these restrictions with respect to time and scope of activity are reasonable and necessary to protect the Confidential Information and the Company’s business goodwill and competitive position.
		

		
			(i)          Remedies for Breach.  In the event of a breach of any of the Restrictive Covenants, in addition to the forfeiture provisions set forth in Section 3.6(a), the Company shall have the right to seek monetary damages for any such breach.  In addition, in the event of a breach or threatened breach of any of the Restrictive Covenants, the Company shall have the right to seek equitable relief, including specific performance by means of an injunction against Participant or against Participant’s partners, agents, representatives, servants, employers, employees, and/or any and all persons acting directly or indirectly by or with him or her, to prevent or restrain any such breach.
		

		
			(j)          Blue Penciling.  In the event a court of competent jurisdiction determines that the geographic area, duration, or scope of activity of any restriction under this Agreement is more extensive than is necessary to protect the legitimate business interests of the Company and its affiliates or are otherwise unenforceable, the Company may, in its sole discretion, reform and modify the restrictions under this Agreement to the extent required to render them valid and enforceable under applicable law.
		

		
			(k)         Defend Trade Secrets Act.  The federal Defend Trade Secrets Act of 2016 provides immunity in certain circumstances to employees, contractors, and consultants for limited disclosures of a company’s trade secrets. Specifically, employees, contractors, and consultants may disclose trade secrets: (i) in confidence, either directly or indirectly, to a federal, state, or local government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, employees, contractors, and consultants who file retaliation lawsuits for reporting a suspected violation of law may also: (A) disclose the trade secret to his/her attorney, and (B) use the information in related court proceeding, as long as the individual files documents containing the trade secret under seal, and does not otherwise disclose the trade secret except pursuant to court order.
		

		
			
		

		
			

		 

		

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			ARTICLE IV
		

		
			OTHER PROVISIONS
		

		
			4.1        No Right to Continued Employment, Service or Awards.
		

		
			(a)         Nothing in the Plan, the Grant Notice, or this Agreement shall confer upon Participant any right to continue in the employ or service of the Company or any Affiliate or shall interfere with or restrict in any way the rights of the Company and any Affiliate, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, except to the extent expressly provided otherwise in a written agreement between the Company or any Affiliate and Participant.
		

		
			(b)         The grant of the Award is a one-time benefit and does not create any contractual or other right to receive a grant of Awards or benefits in lieu of Awards in the future.  Future grants, if any, will be at the sole discretion of the Company.  In addition, the value of the Award is an extraordinary item of compensation outside the scope of any employment contract.  As such, the Award is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. The future value of the underlying Common Stock is unknown and cannot be predicted with certainty.
		

		
			4.2        Adjustments. Participant acknowledges that the Award, including the vesting of the Award and the number of Shares subject to the Award, is subject to adjustment in the discretion of the Board (or any Committee to which administration of the Plan has been delegated by the Board) upon the occurrence of certain events as provided in this Agreement and Section 11 of the Plan.
		

		
			4.3        Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company’s corporate headquarters or to the then-current email address for the Secretary of the Company, and any notice to be given to Participant shall be addressed to Participant at the most recent physical or email address for Participant listed in the Company’s personnel records. By a notice given pursuant to this Section 4.3, either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.
		

		
			4.4        Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
		

		
			4.5        Governing Law; Venue; Severability. The laws of the state in which Participant resides shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws. The parties agree that any suit, action, or proceeding arising out of or relating to the Plan or this Agreement shall be brought in the United States District Court for the Southern District of California (or should such court lack jurisdiction to hear such action, suit or proceeding, in a California state court in San Diego County, California) and that the parties shall submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest extent permitted by law, any objection a party may have to the laying of venue for any such suit, action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions of this Agreement shall for any reason be held invalid or 
		

		
			
		

		
			

		 

		

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			unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.    Notwithstanding anything to the contrary contained in the Participant’s Employee Inventions & Secrecy Agreement (the “Inventions & Secrecy Agreement”), Section 16 of such agreement is hereby amended to be consistent with this Section 4.5 and this constitutes an amendment of such Inventions & Secrecy Agreement to change the governing law of such agreement to be consistent with this Section 4.5 (with references therein to the “Agreement” to continue to be deemed references to the Inventions & Secrecy Agreement).
		

		
			4.6        Conformity to Securities Laws. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated thereunder by the United States Securities and Exchange Commission, including, without limitation, Rule 16b-3 under the Exchange Act. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Awards are granted, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan, the Grant Notice and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.
		

		
			4.7        Tax Representations. Participant has reviewed with Participant’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by the Grant Notice and this Agreement. Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. Participant understands that Participant (and not the Company) shall be responsible for Participant’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.
		

		
			4.8        Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Participant and his or her heirs, executors, administrators, successors and assigns.
		

		
			4.9        Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the PRSUs, the Dividend Equivalents, the Plan and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.
		

		
			4.10      Amendment, Suspension and Termination. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Board (or any Committee to which administration of the Plan has been delegated by the Board); provided that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall impair any rights or obligations under this Agreement in any material way without the prior written consent of Participant.
		

		
			4.11      Paperless Administration.  By accepting this Award, Participant hereby agrees to receive documentation related to the Award by electronic delivery, such as a system using an internet website or interactive voice response, maintained by the Company or a third party designated by the Company.
		

		
			
		

		
			

		 

		

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			4.12      Entire Agreement.  The Plan, the Grant Notice, this Agreement and the Inventions & Secrecy Agreement constitute the entire agreement of the parties and supersede in their entirety all oral, implied or written promises, statements, understandings, undertakings and agreements between the Company and Participant with respect to the subject matter hereof, including without limitation, the provisions of any employment agreement or offer letter regarding equity awards to be awarded to Participant by the Company, or any other oral, implied or written promises, statements, understandings, undertakings or agreements by the Company or any of its representatives regarding equity awards to be awarded to Participant by the Company. Notwithstanding the foregoing, Section 3.6 of this Agreement is in addition to and does not limit the effect of other agreements or understandings between Participant and the Company or any Affiliate with respect to matters addressed therein, including the Inventions & Secrecy Agreement or any other agreement with respect to prohibitions against solicitation and the protection of the Company’s trade secrets and confidential information and noncompetition and nonsolicitation covenants of Participant; provided, however, that to the extent the provisions of Section 3.6 of this Agreement are more restrictive that any such agreements, including the Inventions & Secrecy Agreement, Participant and the company agree that the provisions of Section 3.6 of this Agreement shall govern.
		

		
			
		

		
			

		 

		

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			4.13      Section 409A.
		

		
			(a)         Notwithstanding any other provision of the Plan, this Agreement or the Grant Notice, the Plan, this Agreement and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the Code (together with any Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Grant Date, “Section 409A”). The Board (or any Committee to which administration of the Plan has been delegated by the Board) may, in its discretion, adopt such amendments to the Plan, this Agreement or the Grant Notice or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Board (or any Committee to which administration of the Plan has been delegated by the Board) determines are necessary or appropriate to comply with the requirements of Section 409A.
		

		
			(b)         This Agreement is not intended to provide for any deferral of compensation subject to Section 409A of the Code, and, accordingly, the Shares issuable pursuant to the PRSUs and the cash issuable upon settlement of the Dividend Equivalents corresponding thereto shall be distributed to Participant no later than the later of: (i) the fifteenth (15th) day of the third month following Participant’s first taxable year in which such PRSUs are no longer subject to a substantial risk of forfeiture, and (ii) the fifteenth (15th) day of the third month following first taxable year of the Company in which such PRSUs are no longer subject to substantial risk of forfeiture, as determined in accordance with Section 409A and any Treasury Regulations and other guidance issued thereunder.
		

		
			(c)         For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), each payment that Participant may be eligible to receive under this Agreement shall be treated as a separate and distinct payment.
		

		
			 
		

		
			 
		

		
			

		 

		

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			EXHIBIT B
		

		
			 
		

		
			TO PERFORMANCE RESTRICTED STOCK UNIT AWARD GRANT NOTICE
		

		
			 
		

		
			VESTING SCHEDULE
		

		
			1.          Performance-Based Vesting.  The PRSUs shall vest based on the Company’s Average Annual Sales Growth Achievement Percentage (as defined below), Average Annual Adjusted EBITDA Growth Achievement Percentage (as defined below) and the Company's Relative TSR Performance (as defined below) for the Performance Period (as defined below) as follows:
		

		
			(a)         Performance Vesting Provisions.  In the event the Measurement Date (as defined below) occurs on September 30, 2021, such number of PRSUs shall vest on the Determination Date (as defined below) as is determined as follows:
		

		
			(i)          Sales Growth.  Subject to adjustment pursuant to clause (iii) below, such number of PRSUs shall be eligible to vest based on the Company’s calculated Average Annual Sales Growth Achievement Percentage during the Performance Period as is determined by multiplying (i) the Target PRSUs set forth in the Grant Notice, by (ii) 50% weighting, by (iii) the Average Annual Sales Growth Achievement Percentage determined as of the Measurement Date.  The Annual Sales Growth Achievement Percentage shall be determined based on the Annual Sales Growth Factor for each fiscal year during the Performance Period pursuant to the chart set forth below:
		

			
					
						Annual Sales Growth Factor

					
					
						Annual Sales Growth
Achievement Percentage

				
	
					
						Less than 2.5% 

					
					
						0%

				
	
					
						2.5%

					
					
						50%

				
	
					
						5.0%

					
					
						100%

				
	
					
						7.5% or Greater

					
					
						200%

				

		
			 
		

		
			If the Company’s Annual Sales Growth Factor  for any fiscal year during the Performance Period is between two achievement levels, the Annual Sales Growth Achievement Percentage for such fiscal year shall be determined by linear interpolation between the applicable achievement levels.
		

		
			(ii)       Adjusted EBITDA Growth.  Subject to adjustment pursuant to clause (iii) below, such number of PRSUs shall be eligible to vest based on the Company’s calculated Average Annual Adjusted EBITDA Growth Achievement Percentage during the Performance Period as is determined by multiplying (i) the Target PRSUs set forth in the Grant Notice, by (ii) 50% weighting, by (iii) Average Adjusted EBITDA Growth Achievement Percentage determined as of the Measurement Date.  The Annual Adjusted EBITDA Growth Achievement Percentage shall be determined based on the Annual Adjusted EBITDA Growth Factor for each fiscal year during the Performance Period pursuant to the chart set forth below:
		

			
					
						Annual Adjusted EBITDA Growth
Factor

					
					
						Annual Adjusted
EBITDA Growth
Achievement Percentage

				
	
					
						Less than 2.75%

					
					
						0%

				
	
					
						2.75%

					
					
						50%

				
	
					
						5.5% 

					
					
						100%

				
	
					
						8.25% or Greater

					
					
						200%

				

		
			
		

		
			

		 

		

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			If the Company’s Annual Adjusted EBITDA Growth Factor for any fiscal year during the Performance Period is between two achievement levels, the Annual Adjusted EBITDA Growth Achievement Percentage shall be determined by linear interpolation between the applicable achievement levels.
		

		
			(iii)       Relative TSR Performance.  The Company's Relative TSR Performance  will result in a multiplier to the Initial Eligible PRSUs (as defined below) to determine the total number of PRSUs that will vest on the Determination Date, with the total number of PRSUs that shall vest on the Determination Date being determined by multiplying (A) the Initial Eligible PRSUs by (B) the “TSR Multiplier” (determined as follows):
		

		
			 
		

			
					
						 

					
						Relative TSR Performance

					
						 

					
					
						 

					
						TSR Multiplier

				
	
					
						Company TSR is 2500 basis points or more above the Russell 2000 Index TSR

					
					
						125%

				
	
					
						Company TSR is 1000 basis points above the Russell 2000 Index TSR

					
					
						110%

				
	
					
						Company TSR is 1000 basis points below the Russell 2000 Index TSR

					
					
						90%

				
	
					
						Company TSR is 2500 basis points or more below the Russell 2000 Index TSR

					
					
						75%

				

		
			 
		

		
			If the Company TSR relative to the Russell 2000 Index TSR for the Performance Period is between two achievement levels, the TSR Multiplier shall be determined by linear interpolation between the applicable achievement levels.
		

		
			(iv)        Continued Service Requirement.  Subject to clauses (b), (c) and (d) below, Participant must not have experienced a Termination of Service prior to September 30, 2021 in order to be eligible for vesting pursuant to this clause (a).
		

		
			(v)         Maximum PRSUs.  In no event will more than the Maximum PRSUs set forth in the Grant Notice vest pursuant to this Agreement.
		

		
			(b)         Vesting Upon a Change in Control.  Notwithstanding the foregoing, such number of PRSUs shall vest immediately prior to the consummation of a Change in Control occurring prior to September 30, 2021, as is equal to (i) the Target PRSUs, multiplied by (ii) the greater of (A) 100% or (B) the TSR Multiplier calculated as of the date of the Change in Control in accordance with Section 1(a)(iii) above using the date of the Change in Control as the Measurement Date.  Except as provided in clause (c) below, Participant must not have experienced a Termination of Service prior to the date of such Change in Control in order to be eligible for vesting pursuant to this clause (b).
		

		
			(c)         Vesting Upon Covered Termination or Disability Prior to Measurement Date.  Notwithstanding the foregoing, in the event Participant experiences a Termination of Service prior to the Measurement Date as a result of his or her Covered Termination or Disability, the PRSUs shall continue to be eligible to vest on the Determination Date pursuant to clause (a) or (b) above, as applicable, based on the Company's performance for the Performance Period, with the exception that the number of PRSUs that 
		

		
			
		

		
			

		 

		

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			shall vest pursuant to clause (a) or (b), as applicable (if any), shall be multiplied by the percentage determined by dividing (x) the number of calendar days elapsed from the beginning of the Performance Period through and including the date of such Covered Termination or Disability, by (y) one thousand ninety-five.
		

		
			(d)         Vesting Upon Death Prior to Measurement Date.  Notwithstanding the foregoing, 100% of the Target PRSUs granted shall vest immediately in the event of Participant’s Termination of Service as a result of his or her death prior to the Measurement Date.
		

		
			2.          Forfeiture.  Any portion of the Award and any PRSUs which do not vest pursuant to Section 1 above (or that are no longer potentially eligible to vest on the Determination Date following the end of any fiscal year during the Performance Period pursuant to Section 1 above due to performance for such fiscal year being less than “target” levels) shall automatically and without further action be cancelled and forfeited by Participant, and Participant shall have no further right or interest in or with respect to such portion of the Award or PRSUs.
		

		
			3.          Definitions.  For purposes of this Agreement, the following terms shall have the meanings given below:
		

		
			(a)         “Adjusted EBITDA” means (i) net income (loss) attributable to the Company plus or minus the following amounts to the extent that these items were added or deducted in determining net income (loss): plus interest expense, less interest income, plus provision for income taxes, less benefit for income taxes, plus depreciation, plus amortization of purchased intangible assets, plus goodwill impairment charges, plus intangible asset impairment charges, plus fixed asset and other long-lived asset impairment charges, plus other non-operating expense, less non-operating income, plus expenses incurred to implement the Company’s Enterprise Resource Planning (ERP) systems and improve its supply chain management, plus expenses incurred related to contemplated or completed business acquisitions including retention bonus expenses, due diligence and consulting costs incurred in connection with the acquisitions, expense recognized as a result of the seller modifying employee equity awards or cash bonuses, expenses recognized related to the change in the fair value of contingent consideration for acquisitions, plus expenses incurred related to restructuring the Company, including the costs of a reduction in force and other associated costs such as consultants, such as presented in the Company’s 8-K filing with the U.S. Securities and Exchange Commission on November 15, 2018.
		

		
			(b)         “Annual Sales Growth Factor” means the Company’s Sales for a fiscal year during the Performance Period divided by the Sales for the previous fiscal year, less one. If there is a change in accounting principles affecting the measurement of Sales during one of the years used in the calculation, the Annual Sales Growth Factor shall be determined using a consistent measurement of Sales for the two years used in this calculation.
		

		
			(c)         “Annual Adjusted EBITDA Growth Factor” means the Company’s Adjusted EBITDA for a fiscal year during the Performance Period divided by the Adjusted EBITDA for the previous fiscal year, less one. If there is a change in accounting principles affecting the measurement of Adjusted EBITDA during one of the years used in the calculation, the Annual Adjusted EBITDA Growth Factor shall be determined using a consistent measurement of Adjusted EBITDA for the two years used in this calculation.
		

		
			(d)         “Average Annual Adjusted EBITDA Growth Achievement Percentage” means the average of the Annual Adjusted EBITDA Growth Achievement Percentages for each of the three fiscal years in the Performance Period.
		

		
			
		

		
			

		 

		

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			(e)         “Average Annual Sales Growth Achievement Percentage” means the average of the Annual Sales Growth Achievement Percentages for each of the three fiscal years in the Performance Period.
		

		
			(f)         “Closing Average Period” means the trading days during the thirty (30) days preceding the last day of the Performance Period.
		

		
			(g)         “Closing Average Russell 2000 Index Value” means (i) if the Measurement Date is September 30, 2021, the average, over the trading days in the Closing Average Period, of the closing value of the Russell 2000 Index or (ii) if the Measurement Date is the date of a Change in Control, the closing value of the Russell 2000 Index on the last trading day prior to the Change in Control.
		

		
			(h)         “Closing Average Share Value” means (i) if the Measurement Date is September 30, 2021, the average, over the trading days in the Closing Average Period, of the closing price of the Company’s Common Stock, or (ii) if the Measurement Date is the date of a Change in Control, the closing price of the Company’s Common Stock on the last trading day prior to the Change in Control.
		

		
			(i)          “Company TSR” means the Closing Average Share Value divided by the Opening Average Share Value, less one, expressed as a percentage.  The Company TSR calculation will exclude any dividends paid on the Company's Common Stock, except in the case of any extraordinary, special or non-recurring dividend where an upward adjustment in the amount of such dividend shall be made to the Closing Average Share Value at the end of the Performance Period.
		

		
			(j)          “Constructive Termination” means a voluntary termination of employment by Participant after one of the following is undertaken without Participant’s express written consent:
		

		
			(i)          a substantial reduction in the nature or scope of Participant’s authority, duties, function or responsibilities (and not simply a change in title or reporting relationships);
		

		
			(ii)         a material reduction in Participant’s base compensation (except for base compensation decreases generally applicable to the Company’s other similarly-situated employees); or
		

		
			(iii)       an increase in Participant’s one-way driving distance from Participant’s principal personal residence to the principal office or business location at which Participant is required to perform services of more than 50 miles, except for required travel for the Company’s business to the extent substantially consistent with Participant’s prior business travel obligations;
		

		
			(iv)        a material breach by the Company of any provisions of this Agreement or any enforceable written agreement between the Company and Participant.
		

		
			Notwithstanding the foregoing, a voluntary termination shall not be deemed a Constructive Termination unless (x) Participant provides the Company with written notice that Participant believes that an event described above has occurred, (y) such notice is given within three (3) months of the date the event occurred, and (z) the Company does not rescind or cure the conduct giving rise to the event described above within ten (10) days of receipt by the Company of such notice from Participant.  A Participant’s resignation from employment with the Company for Good Reason must occur within ninety (90) days following the expiration of the foregoing cure period.
		

		
			(k)         “Covered Termination” means Participant’s Involuntary Termination Without Cause or Constructive Termination.
		

		
			
		

		
			

		 

		

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			(l)          “Determination Date” means the date on which the Committee certifies in writing the Company’s Average Annual Sales Growth Achievement Percentage, Average Annual Adjusted EBITDA Achievement Percentage, and Relative TSR Performance for the Performance Period.  In the event the Measurement Date is September 30, 2021, the Company expects the Determination Date will occur prior to November 30, 2021, but in all events such date shall occur during 2021.  In the event the Measurement Date is the date of a Change in Control, or a Change in Control occurs on or after September 30, 2021 but prior to the occurrence of the Determination Date, the Determination Date will occur immediately prior to the closing of the Change in Control.
		

		
			(m)        “Initial Eligible PRSUs” shall be determined by adding (i) the  number of PRSUs eligible to vest pursuant to clause (i) based on the Average Annual Sales Growth Achievement Percentage for the Performance Period, and (ii) the number of PRSUs eligible to vest pursuant to clause (ii) based on the Average Annual Adjusted EBITDA Growth Achievement Percentage.
		

		
			(n)         “Involuntary Termination Without Cause” means Participant’s involuntary termination of employment by the Company other than for one of the following reasons:
		

		
			(i)      The willful and continued failure of Participant to perform substantially his or her duties to the Company as those duties exist on the date of termination, other than any failure resulting from circumstances outside Participant’s control, or from incapacity of Participant due to physical or mental illness or Disability, or following Participant’s delivery of notice of Constructive Termination, after a written demand for substantial performance is delivered to Participant, which demand specifically identifies the manner in which the Company believes the Participant has not substantially performed his or her duties satisfactorily, and provided that the Company demonstrates that such failure has a demonstrably harmful impact on the Company or its reputation, and provided further that Participant has been given a period of at least thirty (30) days to cure his or her failure in performance.  No act or failure to act shall be considered “willful” unless it is done, or omitted to be done, in bad faith or without reasonable belief that the action was in the best interests of the Company or its Affiliates;
		

		
			(ii)     Participant’s gross negligence or breach of fiduciary duty to the Company involving personal profit, personal dishonesty or recklessness, or Participant’s material breach of any agreement with the Company, including a material violation of Company policies and procedures; provided that such termination of employment occurs within twelve (12) months following the     Company’s discover of such event; or
		

		
			(iii)    Participant’s conviction (which has become final) or entry of a plea of guilty or nolo contendere regarding an act that would be deemed a felony under California or Federal criminal statutes (or any comparable criminal laws of any jurisdiction in which Participant is permanently employed by the Company or an Affiliate) that has a demonstrably harmful impact on the Company’s business or reputation, as determined in good faith by the Company’s Executive Compensation Committee, provided that such termination of employment occurs within twelve (12) months following the Company’s discover of such event.
		

		
			(o)         “Measurement Date” means the first to occur of (i) September 30, 2021, or (ii) the date of a Change in Control.
		

		
			(p)         “Opening Average Period” means the trading days during the thirty (30) days preceding the first day of the Performance Period.
		

		
			
		

		
			

		 

		

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			(q)         “Opening Average Share Value” means the average, over the trading days in the Opening Average Period, of the closing price of the Company’s Common Stock
		

		
			(r)         “Opening Average Russell 2000 Index Value” means the average, over the trading days in the Opening Average Period, of the closing value of the Russell 2000 Index.
		

		
			(s)         “Performance Period” means the period beginning on October 1, 2018 and ending on the Measurement Date.
		

		
			(t)          "Russell 2000 Index" means the Russell 2000 Index, or in the event such index is discontinued or its methodology is significantly changed, a comparable index selected by the Administrator in good faith.
		

		
			(u)         “Russell 2000 Index TSR” means the Closing Average Russell 2000 Index Value divided by the Opening Average Russell 2000 Index Value, less one, expressed as a percentage.  The Russell 2000 Index TSR calculation will be based on the companies traded on the index as of the applicable dates and is used as of the applicable dates even if companies are added or removed from the index during the Performance Period. The Russell 2000 Index TSR will exclude any dividends paid.
		

		
			(v)         “Sales” means the revenues from the Company’s sales, determined in accordance with accounting principles generally accepted in the United States.
		

		
			(w)        "Relative TSR Performance" means the Company's TSR less the Russell 2000 Index TSR, in each case for the Performance Period, expressed in basis points.
		

		
			
		

		
			

		 

		

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			Notice of Performance Stock Unit of CUBIC CORPORATION
		

		
			 
		

			
					
						Company Name

					
					
						Cubic Corporation

				
	
					
						Plan

					
					
						%%EQUITY_PLAN%-%

				
	
					
						Participant ID

					
					
						%%EMPLOYEE_IDENTIFIER%-%

				
	
					
						Participant Name

					
					
						%%FIRST_NAME%-% %%MIDDLE_NAME%-% %%LAST_NAME%-%

				
	
					
						Participant Address

					
					
						%%ADDRESS_LINE_1%-%

					
						%%ADDRESS_LINE_2%-%

					
						%%ADDRESS_LINE_3%-%

				
	
					
						Grant/Award Type

					
					
						Performance Stock Unit

				
	
					
						Share Amount

					
					
						%%TOTAL_SHARES_GRANTED,’999,999,999’%-%

				
	
					
						Grant/Award Price

					
					
						%%OPTION_PRICE,’$999,999,999.99%-%

				
	
					
						Grant/Award Date

					
					
						%%OPTION_DATE,’Month DD, YYYY’ %-%

				
	
					
						Expiration Date

					
					
						11/06/2028

				

		
			 
		

		
			VESTING SCHEDULE
		

		
			 
		

			
					
						Vesting Date

					
					
						    

					
					
						No. of Shares

					
					
						    

					
					
						Percent

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						%%VEST_DATE_PERIOD1,’Month DD, YYYY’%-%

					
					
						 

					
					
						%%SHARES_PERIOD1,'999,999,999'%-%%

					
					
						 

					
					
						100%

				

		
			 
		

		 

		

			Internal

		

		

			B-7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}]]