Document:

EXHIBIT 10.1

 

AMENDMENT
NO. 1,
dated as of March 8, 2017 (this “Amendment”).  Reference is made to the
Credit Agreement dated as of November 12, 2015, among Benchmark Electronics, Inc., a Delaware corporation (the “Company”),
the Borrowing Subsidiaries party thereto, the several banks and other financial
institutions or entities from time to time parties to the Credit Agreement, as
lenders (the “Lenders”),  JPMORGAN
CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative
Agent”) and Collateral Agent and the various other parties thereto (as
amended, restated, modified and supplemented from time to time prior to the
date hereof, the “Credit Agreement”, and the Credit Agreement, as
amended by this Amendment, the “Amended Credit Agreement”).  Capitalized
terms used and not otherwise defined herein shall have the meanings assigned to
such terms in the Amended Credit Agreement.

WHEREAS,
the Company has requested that the Credit Agreement be amended as set forth in
this Amendment;

WHEREAS,
pursuant to Section 9.02 of the Credit Agreement, the consent of the Company
and the Required Lenders on the Amendment No. 1 Effective Date (as defined
below) is required to effect this Amendment and the amendments to the Credit
Agreement set forth herein; and

WHEREAS,
the Administrative Agent, the Company and the Lenders party hereto constituting
the Required Lenders are willing to enter into this Amendment on the terms and
conditions set forth herein.

NOW, THEREFORE,
the parties hereto agree as follows:

Section
1. 
Amendments
to the Credit Agreement.  The Credit Agreement is, effective as of the
Amendment No. 1 Effective Date (as defined below), hereby amended as follows:

(a)  Section 1.01 of
the Credit Agreement is hereby amended by adding the following definitions in
alphabetical order:

“Amendment No. 1” means Amendment No. 1 to
this Agreement, dated as of March 8, 2017 among the Company, the Guarantors,
the Administrative Agent and the Lenders party thereto.

“Amendment No. 1 Effective Date” has the
meaning assigned to such term in Amendment No. 1.

“Bail-In Action” means the exercise of any
Write-Down and Conversion Powers by the applicable EEA Resolution Authority in
respect of any liability of an EEA Financial Institution.

1

 

“Bail-In
Legislation” means, with respect to any EEA Member Country implementing
Article 55 of Directive 2014/59/EU of the European Parliament and of the
Council of the European Union, the implementing law for such EEA Member Country
from time to time which is described in the EU Bail-In Legislation Schedule.

“EEA Financial Institution” means (a) any
credit institution or investment firm established in any EEA Member Country
which is subject to the supervision of an EEA Resolution Authority, (b) any
entity established in an EEA Member Country which is a parent of an institution
described in clause (a) of this definition, or (c) any financial institution
established in an EEA Member Country which is a subsidiary of an institution
described in clauses (a) or (b) of this definition and is subject to
consolidated supervision with its parent.

“EEA Member Country” means any of the member
states of the European Union, Iceland, Liechtenstein, and Norway.

“EEA
Resolution Authority” means any public administrative authority or any
person entrusted with public administrative authority of any EEA Member Country
(including any delegee) having responsibility for the resolution of any EEA
Financial Institution.

“EU Bail-In Legislation Schedule” means the
EU Bail-In Legislation Schedule published by the Loan Market Association (or
any successor person), as in effect from time to time.

“Outstanding Receivables Transaction Amount”
means, at any time of determination, the excess of (i) the face amount of all
Receivables disposed of pursuant to Section 6.05(e) prior to such time of
determination minus  (ii) any amount included in clause (i) above that is
attributable to Receivables with a stated due date prior to such time of
determination.

“Permitted Receivables Transaction” means a
Receivables Transaction, provided that (x) the financing terms, covenants,
termination events and other provisions thereof, including any Standard
Receivables Undertakings, shall be market terms (as determined in good faith by
the Company) and (y) the aggregate Outstanding Receivables Transaction Amount
at any time in respect of all Receivables Transactions does not exceed
$40,000,000.

“Receivables” means any "account"
as defined under the UCC including without limitation, any receivable, account
receivable, right to payment of a monetary obligation, indebtedness, contract
right, chose in action, and proceeds thereof, wherever located, arising out of
the sale, lease, license or assignment of any products or any other goods or
services that are the subject of any contracts pursuant to which goods are sold
or services are rendered by the Company and that give rise to any Receivables
by the Company or any Restricted Subsidiary (“Goods” or “Services”,
respectively); all related invoices, sales orders, bills of 

2

 

lading,
and other contractual rights and supporting obligations relating thereto (“Invoices”);
all rights to payment of any interest, finance, returned check or late charges,
if any; all indebtedness and other obligations owed to the Company or any
Restricted Subsidiary as a result of the sale of such Goods or Services pursuant
to the Invoices; any and all returned, reclaimed, and repossessed Goods sold or
financed pursuant thereto; all rights as to any Goods or other property,
contracts of indemnity, letters of credit, guaranties or sureties, pledges,
hypothecations, mortgages, chattel mortgages, security agreements, deeds of
trust, proceeds of insurance (including credit insurance on such Receivables),
and other collateral, liens or proceeds thereof at any time constituting
supporting obligations for such Receivables; any proceeds of the foregoing; and
any and all other rights, remedies, benefits and interests, both legal and
equitable, to which the Company or any Restricted Subsidiary may be entitled in
respect of any of the foregoing, including, but not limited to, any rights,
remedies, benefits, and interests set forth in the UCC with respect to
"accounts", "payment intangibles" or "supporting
obligations."

“Receivables Related Rights” means, in
relation to any Receivable that is the subject of a Receivables Transaction,
(i) any rights under or relating to the contract governing such Receivable to
the extent necessary to enforce collection of such Receivable, (ii) all
security interests or Liens and property subject thereto from time to time
purporting to secure payment of such Receivable, whether pursuant to the
contract governing such Receivable or otherwise, (iii) all guarantees,
insurance (but only to the extent such insurance relates solely to Receivables
that are of the same type as the Receivables subject of the Receivables
Transaction) and other agreements or arrangements of whatever character from
time to time supporting or securing payment of such Receivable whether pursuant
to the contract governing such Receivable or otherwise and (iv) other assets
relating to such Receivable which are customarily transferred in connection
with sales or factoring of Receivables.

“Receivables Transaction” means, with respect
to Company and/or any of the Restricted Subsidiaries, any transaction or series
of transactions of sales or factoring involving Receivables and Receivables
Related Rights pursuant to which Company or any Restricted Subsidiary may sell,
convey or otherwise transfer to any other Person any Receivables (whether now
existing or arising in the future) and Receivables Related Rights of Company or
any Restricted Subsidiary.

“Standard Receivables Undertakings” means
representations, warranties, covenants and indemnities entered into by Company
or any Subsidiary of Company that Company has determined in good faith to be
customary in a Permitted Receivables Transaction.

“Write-Down and Conversion Powers” means,
with respect to any EEA Resolution Authority, the write-down and conversion
powers of such EEA Resolution Authority from time to time under the Bail-In
Legislation for the 

3

 

applicable EEA Member Country,
which write-down and conversion powers are described in the EU Bail-In
Legislation Schedule.

(b)  Section 1.01 of the Credit
Agreement is hereby amended by
amending and restating the definition of “Defaulting Lender” as follows:

“Defaulting Lender” means, subject to Section 2.22(b),
any Lender that (a) has failed to (i) fund all or any portion of its Loans
within two Business Days of the date such Loans were required to be funded by it
hereunder unless such Lender notifies the Administrative Agent and the Company
in writing that such failure is the result of such Lender’s determination that
one or more conditions precedent to funding (each of which conditions
precedent, together with any applicable default, shall be specifically
identified in such writing) has not been satisfied, or (ii) pay to the
Administrative Agent, any Issuing Lender or any other Lender any other amount
required to be paid by it hereunder (including in respect of its participations
in Letters of Credit) within two Business Days of the date when due, (b) has
notified the Company, the Administrative Agent or any Issuing Lender in writing
that it does not intend to comply with its funding obligations hereunder or has
made a public statement to that effect (unless such writing or public statement
relates to such Lender’s obligation to fund a Loan hereunder and states that
such position is based on such Lender’s determination that a condition
precedent to funding (which condition precedent, together with any applicable
default, shall be specifically identified in such writing or public statement)
cannot be satisfied, (c) has failed, within three Business Days after written
request by the Administrative Agent or the Company, to confirm in writing that
it will comply with its prospective funding obligations hereunder (provided 
that such Lender shall cease to be a Defaulting Lender pursuant to this
clause (c) upon receipt of such written confirmation by the Administrative
Agent and the Company), or (d) has, or has a direct or indirect parent company
that has, (i) become the subject of a proceeding under any Debtor Relief Law,
(ii) had appointed for it a receiver, custodian, conservator, trustee,
administrator, assignee for the benefit of creditors or similar Person charged
with reorganization or liquidation of its business or assets, including the
Federal Deposit Insurance Corporation or any other state or federal regulatory
authority acting in such capacity or, in the good faith determination of the
Administrative Agent, has taken any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any such proceeding or appointment
or (iii) become the subject of a Bail-In Action; provided  that a Lender shall
not be a Defaulting Lender solely by virtue of (A) an Undisclosed
Administration or (B) the ownership or acquisition of any equity interest in
that Lender or any direct or indirect parent company thereof by a Governmental
Authority so long as such ownership interest does not result in or provide such
Lender with immunity from the jurisdiction of the courts within the United
States or from the enforcement of judgments or writs of attachment on its
assets or permit such Lender (or such Governmental Authority) to reject,
repudiate, disavow or disaffirm any contracts or agreements made by such
Person.

4

 

(c)  Section
2.22(a)(iv) of the Credit Agreement is hereby amended by amending and restating
the second sentence thereof as follows:

“Subject to Section 9.18, no reallocation
hereunder shall constitute a waiver or release of any claim of any party
hereunder against a Defaulting Lender arising from that Lender having become a
Defaulting Lender, including any claim of a Non-Defaulting Lender as a result
of such Non-Defaulting Lender’s increased exposure following such
reallocation.”

(d)  Section 6.01(m)
of the Credit Agreement is hereby amended by deleting “and” at the end of such
section.

(e)  Section 6.01(n)
of the Credit Agreement is hereby amended by deleting “.” at the end of such
section and replacing such text with the following: “; and”.

(f)  Section 6.01 of
the Credit Agreement is hereby amended by adding the following new Section
6.01(o):

“Indebtedness owing in connection with a Permitted
Receivables Transaction in the event that any purchase of Receivables
thereunder is not characterized as a “true sale.”

(g)  Section 6.02(m)
of the Credit Agreement is hereby amended by deleting “and” at the end of such
section.

(h)  Section 6.02(n)
of the Credit Agreement is hereby amended by deleting “.” at the end of such
section and replacing such text with the following: “; and”.

(i)  Section 6.02 of
the Credit Agreement is hereby amended by adding the following new Section
6.02(o):

“Liens (x) on deposit accounts established for the
purpose of receiving the proceeds of Receivables sold or transferred in
connection with a Permitted Receivables Transaction; provided  that any
amounts deposited into such accounts that do not represent (i) such proceeds or
(ii) amounts deposited into such accounts to establish or maintain a minimum
balance shall be transferred out of such accounts by or at the direction of the
Company as soon as reasonably practicable but in no event more than 15 days
from the date of their deposit into such accounts; and (y) on Receivables and
Receivables Related Rights subject of a Permitted Receivables Transaction.”

(j)  Section 6.05(c)
of the Credit Agreement is hereby amended by deleting “and” at the end of such
section.

(k)  Section 6.05(d)
of the Credit Agreement is hereby amended by deleting “.” at the end of such
section and replacing such text with the following: “; and”.

5

 

(l)  Section 6.05 of
the Credit Agreement is hereby amended by adding the following new Section
6.05(e):

“sales, transfers and dispositions of Receivables
and Receivables Related Rights pursuant to a Permitted Receivables
Transaction.”

(m) 
Section 6.13 of the Credit Agreement is hereby amended by deleting “.” at the
end of such section and replacing such text with the following:

“, in each case, except as permitted pursuant to
Section 6.05(e).”.

(f) 
Article IX of the Credit Agreement is hereby amended by adding the following new
Section 9.18:

“Section
9.18  Acknowledgement
and Consent to Bail-In of EEA Financial Institutions. 
Notwithstanding anything to the contrary in any Loan Document or in any other
agreement, arrangement or understanding among any such parties, each party hereto
acknowledges that any liability of any EEA Financial Institution arising under
any Loan Document, to the extent such liability is unsecured, may be subject to
the write-down and conversion powers of an EEA Resolution Authority and agrees
and consents to, and acknowledges and agrees to be bound by:

(a)  the
application of any Write-Down and Conversion Powers by an EEA Resolution
Authority to any such liabilities arising hereunder which may be payable to it
by any party hereto that is an EEA Financial Institution; and

(b)  the effects
of any Bail-In Action on any such liability, including, if applicable:

(i)                
a
reduction in full or in part or cancellation of any such liability;

(ii)              
a
conversion of all, or a portion of, such liability into shares or other
instruments of ownership in such EEA Financial Institution, its parent
undertaking, or a bridge institution that may be issued to it or otherwise
conferred on it, and that such shares or other instruments of ownership will be
accepted by it in lieu of any rights with respect to any such liability under
this Agreement or any other Loan Document; or

(iii)            
the
variation of the terms of such liability in connection with the exercise of the
write-down and conversion powers of any EEA Resolution Authority.”

Section
2. 
Representations
and Warranties. 
To induce the Administrative Agent and the Lenders to enter into this
Amendment, the Company represents and warrants that as of the Amendment No. 1
Effective Date:

6

 

(a)  Organization;
Powers. 
The Company is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and
authority to conduct its business as it is currently being conducted and is
qualified and/or licensed in all jurisdictions where it is required to be so
qualified or licensed to operate its business, except where the failure to so
qualify or be in good standing, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

(b)  Authorization;
Enforceability. 
This Amendment has been duly authorized by all necessary corporate action. 
This Amendment has been duly executed and delivered by the Company.  This
Amendment constitutes a legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights or remedies generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law.

Section
3. 
Effectiveness.  This
Amendment shall become effective on the date (the “Amendment No. 1 Effective
Date”) that the following conditions have been satisfied:

(a)  Consents. The
Administrative Agent shall have received counterparts of this Amendment
executed by each Loan Party, the Required Lenders and the Administrative Agent.

(b)  Expenses.  The
Administrative Agent shall have received all fees required to be paid, and all
expenses required to be paid or reimbursed under Section 9.03(a) of the Credit
Agreement for which invoices have been presented a reasonable period of time
prior to the Amendment No. 1 Effective Date, in each case on or before the
Amendment No. 1 Effective Date.

(c)  Consent Fees.  The Company
shall have paid to the Administrative Agent, for the account of each Lender
that delivers a signature page to this Amendment, an amendment fee in an amount
equal to 0.05% of the aggregate amount of such Lender’s commitments under the
Initial Term A Facility and Revolving Facility as of the Amendment No. 1
Effective Date.

(d)  Officer’s
Certificate.
The Administrative Agent shall have received a certificate, dated the Amendment
No. 1 Effective Date and signed by a Financial Officer or any other executive
officer of the Company confirming that (a) after giving effect to this
Amendment, no Default or Event of Default has occurred and is continuing and
(b) after giving effect to this Amendment, the representations and warranties
of each Loan Party set forth in the Credit Agreement and the other Loan
Documents are true and correct in all material respects as of the date hereof
(except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they were true and correct as of such
earlier date).

Section
4. 
Reaffirmation.  Each Loan
Party hereby acknowledges its receipt of a copy of this Amendment and the
Credit Agreement and its review of the terms and conditions hereof and thereof
and consents to the terms and conditions of this Amendment and the Amended
Credit Agreement and the transactions contemplated hereby and thereby,
including the extension of credit to the Company in the form of the Loans made
and Letters of Credit issued thereunder.  Each Guarantor hereby (a) affirms and
confirms its guarantees and other 

7

 

commitments under the
Guarantee Agreement, and (b) agrees that the Guarantee Agreement is in full
force and effect and shall accrue to the benefit of the Secured Parties to
secure the Obligations after giving effect to this Amendment. Each Loan Party
hereby (a) affirms and confirms its pledges, grants and other commitments under
the Security Documents and the Liens granted by it pursuant to the Security
Documents, and (b) agrees that the Security Documents and the Liens granted by
it pursuant to the Security Documents are each in full force and effect after
giving effect to this Amendment and shall accrue to the benefit of the Secured
Parties to secure the Obligations after giving effect to this Amendment. This
Amendment is not intended to constitute a novation of the Credit Agreement or
any of the other Loan Documents as in effect prior to the Amendment No. 1
Effective Date. 

Section
5. 
Counterparts.  This
Amendment may be executed in any number of counterparts and by different
parties hereto on separate counterparts, each of which when so executed and
delivered shall be deemed to be an original, but all of which when taken
together shall constitute a single instrument.  Delivery of an executed
counterpart of a signature page of this Amendment by facsimile or any other
electronic transmission shall be effective as delivery of a manually executed
counterpart hereof. 

Section
6. 
Applicable
Law; Waiver of Jury Trial; Jurisdiction; Consent to Service of Process.  The
provisions set forth in Sections 9.09 and 9.10 of the Credit Agreement are
hereby incorporated mutatis mutandis with all references to the
“Agreement” therein being deemed references to this Amendment.

Section
7. 
Headings.  The headings
of this Amendment are for purposes of reference only and shall not limit or
otherwise affect the meaning hereof.

Section
8. 
Effect
of Amendment. 
Except as expressly set forth herein, (i) this Amendment shall not by
implication or otherwise limit, impair, constitute a waiver of or otherwise
affect the rights and remedies of the Lenders, the Administrative Agent or the
Collateral Agent, in each case under the Credit Agreement or any other Loan
Document, and (ii) shall not alter, modify, amend or in any way affect any of
the terms, conditions, obligations, covenants or agreements contained in the
Credit Agreement or any other provision of either such agreement or any other
Loan Document.  This Amendment shall constitute a Loan Document for purposes of
the Credit Agreement and from and after the Amendment No. 1 Effective Date, all
references to the Credit Agreement in any Loan Document and all references in
the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of
like import referring to the Credit Agreement, shall, unless expressly provided
otherwise, refer to the Amended Credit Agreement.  The Company hereby consents
to this Amendment and confirms that all obligations of the Company under the
Loan Documents to which it is a party shall continue to apply to the Amended
Credit Agreement.

[Signature
pages follow]

8

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

BENCHMARK ELECTRONICS, INC.

By:      /s/
Donald Adam

       Name:  Donald Adam

       Title:    Chief Financial Officer

[Signature Page to Amendment No. 1]

 

 

JPMORGAN 
CHASE BANK, N.A., 

as Administrative Agent

 

By:   /s/
Justin Burton

    Name: Justin Burton

    Title: Vice President

[Signature Page to Amendment No. 1]

 

 

JPMORGAN CHASE BANK, N.A.,

as Lender

 

By:   /s/
Justin Burton

    Name: Justin Burton

    Title: Vice President

 

[Signature Page to Amendment No. 1]

 

 

Bank of America, N.A.,

as Lender

 

By:   /s/
Juan Trejo

    Name: Juan Trejo

    Title: Vice President

 

[Signature Page to Amendment No. 1]

 

 

Branch Banking & Trust Company,

as Lender

 

By:   /s/
Matt McCain

    Name: Matt McCain

    Title: Senior Vice President

 

[Signature Page to Amendment No. 1]

 

 

COMPASS BANK d/b/a BBVA Compass,

as Lender

 

By:   /s/
Raj Nambiar

    Name: Raj Nambiar

    Title: Sr. Vice President

 

[Signature Page to Amendment No. 1]

 

 

Wells Fargo Bank, N.A.,

as Lender

 

By:   /s/
Warren R. Ross

    Name: Warren R. Ross

    Title: Senior Vice President

 

[Signature Page to Amendment No. 1]

 

 

ZB, N.A.dba Amegy Bank,

as Lender

 

By:   /s/
Megan Dilger

    Name: Megan Dilger

    Title: Assistant Vice President

 

[Signature Page to Amendment No. 1]

 

 

ING Bank N.V., Dublin Branch

as Lender

 

By:   /s/
Padraig Matthews

    Name: Padraig Matthews

    Title: Vice President

 

By:   /s/
San Hassett

    Name: Sean Hassett

    Title: Director 

 

[Signature Page to Amendment No. 1]

 

 

HSBC Bank USA, N.A.

as Lender

 

By:   /s/
Michael Bustios

    Name: Michael Bustios

    Title: Vice President, 20556

 

[Signature Page to Amendment No. 1]

 

 

BOKF, NA dba Bank of Texas

as Lender

 

By:   /s/
Marian Livingston

    Name: Marian Livingston

    Title: SVP 

 

[Signature Page to Amendment No. 1]1

 

 

 

Exhibit 10.2

 

FORM OF RESTRICTED STOCK UNIT
AWARD AGREEMENT

Restricted Stock Unit Award Agreement under the
Benchmark Electronics, Inc. 2010 Omnibus Incentive Compensation Plan,  dated as of [___], between Benchmark
Electronics, Inc. (the “Company”), a Texas corporation, and [NAME].

This Restricted Stock Unit Award Agreement (this
“Award Agreement”) sets forth the terms and conditions of an award (the
“Award”) of [____] restricted stock units that are subject to the terms
and conditions specified herein (“RSUs”) and that are being granted to
you on the date hereof under the Benchmark Electronics, Inc. 2010 Omnibus
Incentive Compensation Plan (the “Plan”).  Each RSU subject to this
Award constitutes an unfunded and unsecured promise of the Company to deliver
(or cause to be delivered) to you, subject to the terms of this Award
Agreement, a share of the Company’s common stock, $0.10 par value (a “Share”),
as set forth in Section 3 of this Award Agreement.

THIS AWARD IS SUBJECT TO ALL TERMS AND CONDITIONS
OF THE PLAN AND THIS AWARD AGREEMENT, INCLUDING THE DISPUTE RESOLUTION
PROVISIONS SET FORTH IN SECTION 10 OF THIS AWARD AGREEMENT.  BY SIGNING
YOUR NAME BELOW, YOU SHALL HAVE CONFIRMED YOUR ACCEPTANCE OF THE TERMS AND
CONDITIONS OF THIS AWARD AGREEMENT.

SECTION 1.  The Plan.  This Award is made
pursuant to the Plan, all the terms of which are hereby incorporated in this
Award Agreement.  In the event of any conflict between the terms of the Plan
and the terms of this Award Agreement, the terms of the Plan shall govern.  In
the event of any conflict between the terms of this Award Agreement and the
terms of any individual employment agreement between you and the Company or any
of its Subsidiaries (an “Employment Agreement”), the terms of your
Employment Agreement shall govern.

SECTION 2.  Definitions.   Capitalized terms
used in this Award Agreement that are not defined in this Award Agreement have
the meanings as used or defined in the Plan.  As used in this Award Agreement,
the following terms have the meanings set forth below:

(a) 
“Business Day” means a day that is not a Saturday, a Sunday or a
day on which banking institutions are legally permitted to be closed in the
City of New York.

(b) 
“Cause” means the occurrence of any one of the following:

(i)  your gross
negligence in the performance of your duties with the Company, which gross
negligence results in a material adverse effect on the Company, provided that
no such gross negligence shall constitute “Cause” if it 

1

 

 

relates
to an action taken or omitted by you in the good faith, reasonable belief that
such action or omission was in or not opposed to the best interests of the
Company;

(ii)  your
habitual neglect or disregard of your duties with the Company that is
materially and demonstrably injurious to the Company, after written notice from
the Company stating the duties you have failed to perform;

(iii)  your
engaging in conduct or misconduct that materially harms the reputation or
financial position of the Company;

(iv)  your
obstruction, impedance or failure to materially cooperate with an investigation
authorized by the Board, a self-regulatory organization empowered with
self-regulatory responsibilities under Federal or state laws, or a governmental
department or agency; or

(v)  your
conviction of a felony, provided that no such conviction will constitute
“Cause” if it relates to an action taken or omitted by you in the good faith,
reasonable belief that such action or omission was in or not opposed to the
best interests of the Company.

(c) 
“Good Reason” means the occurrence of any one of the following:

(i)  a material
diminution of your duties or responsibilities;

(ii)  a greater
than 10% reduction in your base salary, annual bonus opportunity or long-term
incentive compensation opportunity; or

(iii)  a material
breach by the Company of any provision of your Employment Agreement or any other
agreement between you and the Company.

A termination of your employment by
you for Good Reason shall be effectuated by giving the Company written notice
(“Notice of Termination for Good Reason”), not later than 90 days following
the date of the occurrence of the circumstance that constitutes Good Reason,
setting forth in reasonable detail the specific conduct of the Company or any
of its Subsidiaries that constitutes Good Reason and the specific provisions of
this Award Agreement, your Employment Agreement or any other agreement between
you and the Company on which you relied.  The Company shall be entitled, during
the 30-day period following receipt of a Notice of Termination for Good Reason,
to cure the circumstances that gave rise to Good Reason, provided that the
Company shall be entitled to waive its right to cure or reduce the cure period
by delivery of written notice to that effect to you (such 30-day or shorter
period, the “Cure Period”).  If, during the Cure Period, such
circumstance is remedied, you shall not be permitted to terminate your employment
for Good Reason as a result of such circumstance.  If, at the end of the Cure
Period, the circumstance that constitutes Good Reason has not been remedied, you
shall be entitled to terminate your employment for Good Reason during the 90-day
period that follows the end of the Cure Period (the “Termination Period”). 
If you do not terminate 

2

 

 

your employment during the
Termination Period, you shall not be permitted to terminate your employment for
Good Reason as a result of such circumstance.

(d) 
“Vesting Date” means each date on which your rights with respect
to all or a portion of the RSUs subject to this Award Agreement may become
fully vested, as provided in Section 3(a) or 3(b) of this Award Agreement.

SECTION 3.  Vesting and Delivery.  (a)  Regularly Scheduled Vesting.  On each Vesting Date set forth below, your
rights with respect to the number of RSUs that corresponds to such Vesting
Date, as specified in the chart below, shall become vested, provided that you
must be employed by the Company or one of its Subsidiaries on the relevant
Vesting Date, except as otherwise determined by the Committee in its sole
discretion or as otherwise provided in your Employment Agreement. 

	
  Scheduled Vesting
  Date

  	
  Incremental

  Percentage Vested

  	
  Incremental
  Number of Restricted Stock Units Vested

  
	
  «Vesting_Date_1»

  	
  [   ]%

  	
   

  
	
  «Vesting_Date_2»

  	
  [   ]%

  	
   

  
	
  «Vesting_Date_3»

  	
  [   ]%

  	
   

  
	
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(b) 
Vesting following a Change of Control.  If, during the two-year
period immediately following a Change of Control, your employment is terminated
by the Company or any of its Subsidiaries without Cause or you terminate your
employment for Good Reason, then the date of such termination shall be deemed
to be the Vesting Date of any then outstanding RSUs.

(c) 
Delivery of Shares.  On each Vesting Date, the Company shall
deliver to you one Share for each RSU that is scheduled to vest on such date in
accordance with the terms of this Award Agreement.

SECTION 4.  Forfeiture of RSUs.  Unless the
Committee determines otherwise, and except as otherwise provided in your
Employment Agreement or Section 3(b) of this Award Agreement, if your rights
with respect to any RSUs awarded to you pursuant to this Award Agreement have not
become vested prior to the date on which your employment with the Company and
its Subsidiaries terminates, your rights with respect to such RSUs shall
immediately terminate, and you shall be entitled to no further payments or
benefits with respect thereto.

SECTION 5.  Voting Rights; Dividend Equivalents.
 Prior to the date on which Shares are delivered to you in settlement of the
RSUs pursuant to this Award Agreement, you shall not be entitled to exercise
any voting rights with respect to the 

3

 

 

Shares underlying
such RSUs and shall not be entitled to receive dividends or other distributions
with respect to such Shares. 

SECTION 6.  Non-Transferability of RSUs.  Unless
otherwise provided by the Committee in its discretion, RSUs may not be sold,
assigned, alienated, transferred, pledged, attached or otherwise encumbered
except as provided in Section 9(a) of the Plan.  Any purported sale, assignment,
alienation, transfer, pledge, attachment or other encumbrance of an RSU in
violation of the provisions of this Section 6 and Section 9(a) of the Plan
shall be void. 

SECTION 7.  Withholding, Consents and Legends. 
(a)  Withholding.  The delivery of Shares pursuant to Section 3 of this
Agreement is conditioned on satisfaction of any applicable withholding taxes in
accordance with Section 9(d) of the Plan.  In the event that there is
withholding tax liability in connection with the settlement of RSUs, you may
satisfy, in whole or in part, any withholding tax liability by having the
Company withhold from the Shares you would be entitled to receive upon
settlement of the RSUs a number of Shares having a Fair Market Value (which
shall either have the meaning set forth in the Plan or shall have such other
meaning as determined by the Company in accordance with applicable withholding
requirements) equal to such withholding tax liability; provided, however, that
if you are an officer subject to Section 16 of the Exchange Act, such
withholding tax liability shall be satisfied by the Company withholding such
number of Shares from the Shares you would be entitled to receive upon
settlement of the RSUs, without any election on your part.

(b) 
Consents; Compliance with Law.  Your rights in respect of the RSUs
are conditioned on the receipt to the full satisfaction of the Committee of any
required consents that the Committee may determine to be necessary or advisable
(including your consenting to the Company’s supplying to any third-party
recordkeeper of the Plan such personal information as the Committee deems
advisable to administer the Plan) and, in accordance with Section 9(l) of the
Plan, subject to the Committee’s determination that the issuance of Shares
pursuant to this Award Agreement is compliant with applicable law. 

(c) 
Legends.   The Company may affix to certificates for Shares issued
pursuant to this Award Agreement any legend that the Committee determines to be
necessary or advisable (including to reflect any restrictions to which you may
be subject under any applicable securities laws).  The Company may advise the
transfer agent to place a stop order against any legended Shares.

SECTION 8.  Successors and Assigns of the
Company.  The terms and conditions of this Award Agreement shall be binding
upon and shall inure to the benefit of the Company and its successors and
assigns.

SECTION 9.  Committee Discretion.  Subject
to the terms of this Award Agreement and your Employment Agreement, the
Committee shall have discretion with respect to any actions to be taken or
determinations to be made in connection with this Award Agreement, and its
determinations shall be final, binding and conclusive.

 

4

 

 

SECTION 10.  Dispute
Resolution.  (a)  Jurisdiction and Venue.  Notwithstanding any
provision in your Employment Agreement, you and the Company hereby irrevocably
submit to the exclusive jurisdiction of (i) the United States District
Court for the Southern District of Texas and (ii) the courts of the State
of Texas for the purposes of any action, suit or other proceeding arising out
of this Award Agreement or the Plan.  You and the Company agree to commence any
such action, suit or other proceeding either in the United States District
Court for the Southern District of Texas or, if such action, suit or other
proceeding may not be brought in such court for jurisdictional reasons, in the courts
of the State of Texas.  You and the Company further agree that service of any
process, summons, notice or document by U.S. registered mail to the applicable
address set forth in Section 11 of this Award Agreement shall be effective
service of process for any action, suit or other proceeding in Texas with
respect to any matters to which you have submitted to jurisdiction in this
Section 10(a).  You and the Company irrevocably and unconditionally waive any
objection to the laying of venue of any action, suit or other proceeding
arising out of this Award Agreement or the Plan in (A) the United States
District Court for the Southern District of Texas or (B) the courts of the
State of Texas, and hereby and thereby further irrevocably and unconditionally
waive and agree not to plead or claim in any such court that any such action,
suit or other proceeding brought in any such court has been brought in an
inconvenient forum.

(b) 
Waiver of Jury Trial.  You and the Company hereby waive, to the
fullest extent permitted by applicable law, any right either of you may have to
a trial by jury in respect to any litigation directly or indirectly arising out
of, under or in connection with this Award Agreement or the Plan. 

(c) 
Confidentiality.   You hereby agree to keep confidential the
existence of, and any information concerning, a dispute described in this Section 10,
except that you may disclose information concerning such dispute to the court
that is considering such dispute or to your legal counsel, accountants and
other representatives (provided that such counsel, accountants and other representatives
agree not to disclose any such information other than as necessary to the
prosecution or defense of the dispute).

SECTION 11.  Notice.   All notices, requests,
demands and other communications required or permitted to be given under the
terms of this Award Agreement shall be in writing and shall be deemed to have
been duly given when delivered by hand or overnight courier or three Business
Days after they have been mailed by U.S. registered mail, return receipt
requested, postage prepaid, addressed to the other party as set forth below:

	
  If to the Company:

  	
  Benchmark Electronics, Inc.

  3000 Technology Drive

  Angleton, Texas 77515

  Attention:  Legal Dept.

   

  
	

  If to you:

  	
  To your address as most recently supplied to
  the Company and set forth in the Company’s records

   

  

5

 

 

 

The parties may
change the address to which notices under this Award Agreement shall be sent by
providing written notice to the other in the manner specified above. 

SECTION 12.  Governing
Law.  This Award Agreement shall be deemed
to be made in the State of Texas, and the validity, construction and effect of
this Award Agreement in all respects shall be determined in accordance with the
laws of the State of Texas, without giving effect to the conflict of law
principles thereof.

SECTION 13.  Headings
and Construction.  Headings are given to
the Sections and subsections of this Award Agreement solely as a convenience to
facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of this Award Agreement or any
provision thereof.  Whenever the words “include”, “includes” or “including” are
used in this Award Agreement, they shall be deemed to be followed by the words
“but not limited to”. The term “or” is not exclusive.

SECTION 14.  Amendment of this Award Agreement. 
The Committee may waive any conditions or rights under, amend any terms of, or
alter, suspend, discontinue, cancel or terminate this Award Agreement
prospectively or retroactively; provided, however, that any such
waiver, amendment, alteration, suspension, discontinuance, cancelation or
termination that would materially and adversely impair your rights under this
Award Agreement shall not to that extent be effective without your consent (it
being understood, notwithstanding the foregoing proviso, that this Award
Agreement and the RSUs shall be subject to the provisions of Section 7(c)
of the Plan).

SECTION 15.  Section 409A.  (a)  For purposes of Section 409A of the Code (“Section 409A”), it
is intended that amounts payable pursuant to this Award Agreement qualify for
the short-term deferral exception under Treas. Reg. Section 1.409A-1(b)(4) or
any successor thereto, and all provisions of this Award Agreement shall be
construed and interpreted in a manner consistent with such exception.

(b) 
In the event that it is determined that any amounts payable pursuant to
this Award Agreement do not qualify for the short-term deferral exception under
Treas. Reg. Section 1.409A-1(b)(4) or any successor thereto, it is intended
that the provisions of this Award Agreement comply with Section 409A, and
all provisions of this Award Agreement shall be construed and interpreted in a
manner consistent with the requirements for avoiding taxes or penalties under
Section 409A and any similar state or local law.

(c)  Neither you nor any of your creditors or
beneficiaries shall have the right to subject any deferred compensation (within
the meaning of Section 409A) payable under this Award Agreement to any
anticipation, alienation, sale, transfer, assignment, 

6

 

 

pledge,
encumbrance, attachment or garnishment.  Except as permitted under
Section 409A, any deferred compensation (within the meaning of
Section 409A) payable to you or for your benefit under this Award
Agreement may not be reduced by, or offset against, any amount owing by you to
the Company or any of its Subsidiaries.

(d) 
To the extent required by Section 409A, any amount payable under
the Award Agreement that constitutes deferred compensation (within the meaning
of Section 409A) subject to, and not exempt from, Section 409A,
payable or provided to you upon a termination of employment shall only be paid
or provided to you upon your separation from service (within the meaning of
Section 409A).  If, at the time of your separation from service, (i) you
are a specified employee (within the meaning of Section 409A and using the
identification methodology selected by the Company from time to time) and
(ii) the Company shall make a good faith determination that an amount
payable under this Award Agreement constitutes deferred compensation the
payment of which is required to be delayed pursuant to the six-month delay rule
set forth in Section 409A in order to avoid taxes or penalties under
Section 409A, then the Company (or its Subsidiary, as applicable) shall
not pay such amount on the otherwise scheduled payment date but shall instead
accumulate such amount and pay it, without interest, on the first business day
after such six-month period.

(e) 
You shall be solely responsible and liable for the satisfaction of all
taxes and penalties that may be imposed on you or for your account in
connection with this Award Agreement (including any taxes and penalties under
Section 409A), and neither the Company nor any of its Subsidiaries shall
have any obligation to indemnify or otherwise hold you harmless from any or all
such taxes or penalties.

SECTION 16.  Counterparts.   This Award Agreement
may be signed in counterparts, each of which shall be an original, with the
same effect as if the signatures thereto and hereto were upon the same
instrument.

IN WITNESS WHEREOF, the parties have duly executed this Award Agreement as
of the date first written above.

	
  benchmark electronics, Inc.,

  
	
  by

  
	
   

  	
   

  
	
   

  	
  Name:  

  
	
   

  	
  Title:    

  

 

	
  [NAME],

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

7

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