Document:

exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

          This Employment Agreement (the “Agreement”) is made as of the 15th day of May, 2008 by
and between Plexus Corp., a Wisconsin corporation (“Employer”), and Dean A. Foate, a
Wisconsin resident individual (“Employee”).

          WHEREAS, Employee is currently employed as the President and Chief Executive Officer of
Employer; and

          WHEREAS, the Employer and the Employee previously entered into an employment agreement dated
September 1, 2003 (the “Prior Agreement”); and

          WHEREAS, the Employer and the Employee desire to amend the provisions of the Prior Agreement
to reflect the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”) and to make other miscellaneous modifications; and

          WHEREAS, Employee is willing to continue to commit himself to serve Employer upon the terms
and conditions herein provided; and

          WHEREAS, Employer and Employee have agreed to restrict Employee’s ability to disclose
confidential information and to compete with Employer with respect to the type of business
conducted by Employer and its subsidiaries (collectively, the “Company”); and

          WHEREAS, any breach of this Agreement by Employee will cause irreparable injury to Employer;
and

          WHEREAS, Employee has consulted with and obtained advice from independent legal counsel
concerning the terms and conditions of this Agreement, or has had the opportunity to do so which he
has declined; and

          WHEREAS, in order to effect the foregoing, Employer and Employee wish to enter into this
Agreement on the terms and conditions set forth below.

          NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, it is hereby mutually agreed as follows:

     1. Recitals. The recitals set forth above shall constitute and be deemed to be an
integral part of this Agreement.

     2. Employment and Acceptance. Employer hereby agrees to continue the employment of
Employee as President and Chief Executive Officer during the Term (as

 

 

hereinafter defined) upon the terms and conditions hereinafter set forth. Employee hereby
accepts such employment and agrees:

          (a) Except for illness, vacation periods, and reasonable leaves of absence, to devote all of
his working time, attention and energy, using his best efforts, to the duties and responsibilities
as are customary for an employee holding a like position in a business of like size and nature to
that of the Employer, as well as to any other duties and responsibilities that may be mutually
agreed upon in writing between Employer and Employee from time to time; provided, however, that
Employee shall be permitted to serve as a director of other noncompeting entities and/or as a
director and/or officer of a nonprofit or industry association so long as such activities do not
interfere with the performance of Employee’s duties hereunder;

          (b) faithfully to serve and further the interests of Employer in every lawful way, giving
honest, diligent, loyal and cooperative service to Employer; and

          (c) to comply with all rules and policies which, from time to time, may be reasonably and
uniformly adopted by Employer, including, without limitation, those rules and policies regarding
disclosure of information concerning Employer, its business, affairs, plans or customers.

          During the Term it shall not be a violation of this Agreement for Employee to manage personal
investments, so long as such activities do not significantly interfere with the performance of
Employee’s responsibilities as an employee of Employer in accordance with this Agreement.

     3. Base Compensation. As compensation for the services to be performed by Employee
under this Agreement, and the noncompetition covenant contained herein, Employer agrees to pay to
Employee, and Employee agrees to accept, a continuation of his base salary, at the rate in effect
immediately prior to the effective date hereof, payable at Employer’s normal payroll intervals,
subject to required payroll withholding provisions. Employee shall be eligible for changes in
future years consistent with performance and Employer’s evaluation criteria and compensation
policies.

     4. Bonus/Incentive Compensation. Employee shall participate in any bonus or incentive
compensation plan of Employer on the terms and conditions determined by the Compensation and
Leadership Development Committee of Employer, but in a manner not less favorable than other
executive officers of Employer.

     5. Employee Benefits. Employee shall receive benefits that are substantially similar
to those offered under Employer’s benefit plans and programs for an executive officer, including,
without limitation, any medical, life, disability, and vacation plans and programs, as in effect
from time to time.

     6. Stock-Based Compensation. Employee shall participate in Employer’s 2008 Long-Term
Incentive Plan, or such other long-term incentive plan as may be implemented in the

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future, consistent with Employee’s position with the Company and in accordance with the terms
of such plan.

     7. Term. The term of this Agreement (the “Term”) shall commence on the date
hereof and shall continue until the earliest to occur of the following:

          (a) the termination of Employee’s employment for Cause upon ten (10) business day’s prior
written notice to Employee;

          (b) Employee’s termination of employment for Good Reason upon ten (10) business day’s prior
written notice to Employer;

          (c) Employee’s or Employer’s termination of Employee’s employment without Cause or without
Good Reason upon ninety (90) days’ prior written notice to the other (this notice period shall not
extend the Term of this Agreement);

          (d) Employee’s death or Disability; or

          (e) May 14, 2011; provided, however, that on each May 14 thereafter the Term shall
automatically be extended for an additional one-year period (restoring the full three-year Term),
unless either party notifies the other party in writing at least six (6) months prior to such date
of the party’s intention not to extend the Agreement.

     8. Cause. Except as otherwise provided by Section 13(b), the term “Cause” as
used herein with respect to the termination of Employee’s employment shall mean:

          (a) A good faith determination by Employer after reasonable investigation that Employee has
committed fraud, misappropriation, embezzlement, or theft against or from Employer;

          (b) Employee’s conviction of a felony, or of any other crime that brings discredit to Employer
or materially impairs Employee’s ability to perform Employee’s job;

          (c) Employee’s failure to carry out the reasonable directives of Employer or his material
duties and responsibilities under this Agreement, after written notice of such failure and a
reasonable opportunity to cure; or

          (d) Employee’s material breach of Employee’s obligations of noncompetition or nondisclosure
under Sections 14 and 15, respectively, of this Agreement.

     9. Except as otherwise provided by Section 13(b), “Good Reason” shall mean:

          (a) Material reduction of Employee’s base salary under Section 3, opportunity to receive
bonus/incentive compensation under Section 4, or benefits under Section 5, stock-

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based compensation under Section 6, or other material breach by the Company of its obligations
under this Agreement;

          (b) Assignment of Employee to duties inconsistent with and substantially diminished from the
responsibilities normally associated with the position specified in Section 2;

          (c) Relocation of Employee to any location outside the Appleton metropolitan area; or

          (d) The delivery by the Company of a notice of non-renewal pursuant to Section 7(e) hereof.

     10. Disability. The term “Disability” as used herein with respect to the termination
of this Agreement shall mean the inability of Employee, as a result of physical or mental
incapacity, to substantially perform his duties with Employer for a period of three consecutive
months.

     11. Separation from Service.

          (a) Employee’s “Separation from Service” shall mean Employee’s “separation from
service” (within the meaning of Section 409A(a)(2)(A)(i) of the Code) with Employer, as determined
by Employer in accordance with Treas. Reg. § 1.409A-1(h)(1).

          (b) Unless the context clearly requires otherwise, the phrases “terminates employment,”
“termination of employment,” and similar phrases refer to Employee’s Separation from Service.

     12. Compensation Upon Separation from Service.

          (a) In the event that during the Term Employer terminates Employee for Cause (Section 7(a)) or
Employee voluntarily resigns without Good Reason (Section 7(c)), or Employee dies or becomes
Disabled (Section 7(d)), other than by reason of a Change in Control Termination, or in the event
that this Agreement expires naturally at the conclusion of the Term under Section 7(e), Employer
shall have no further obligation to pay to Employee or provide Employee with either salary or other
benefits, except those entitlements (“Accrued Benefits”) that have accrued as of the date
of such termination (“Separation Date”) or to which Employee is entitled under any
disability insurance or other applicable plan or program.

          (b) In the event that Employer terminates Employee without Cause or Employee resigns with Good
Reason, other than in a Change in Control Termination, Employee shall be entitled, in addition to
his Accrued Benefits (which for this purpose shall include any VICP bonus for any performance
period ending before the Separation Date, to the extent not theretofore paid) and subject to
Section 12(c), to the following:

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	 	(i)	 	Employee shall continue to be paid his then
current base salary during the three-year period beginning on his
Separation Date (the “Separation Period”).
	 
	 	(ii)	 	Employee shall be paid, at the same time as
bonuses under the Company’s Variable Incentive Compensation Plan (or
successor short-term bonus plan) (the “VICP”) are payable to
active employees, the VICP bonus to which he would have been entitled
had he remained employed throughout the performance year containing the
Separation Date, multiplied by a fraction, the numerator of which is
the number of days in the performance year through his Separation Date
and the denominator of which is 365.
	 
	 	(iii)	 	On each December 15 during the Separation
Period Employee shall receive a lump-sum payment equal to the sum of:

	 	(A)	 	one hundred percent (100%) of his
annual base salary as in effect immediately prior to his
Separation Date; and
	 
	 	(B)	 	the maximum amount of Employer
contributions and credits (including matching contributions and
credits) for a full plan year under all of the Company’s
qualified or nonqualified retirement or deferred compensation
plans that are account balance plans.

For purposes of clause (B) above, (x) Employee shall be deemed to be
fully vested, (y) it shall be assumed that Employee’s total annual
cash compensation and total targeted cash compensation is equal to
Employee’s total target cash compensation as in effect immediately
before the Separation Date, and (z) for purposes of determining the
maximum amount of Employer matching contributions or credits it shall
be assumed that Employee elects to maximize elective deferrals to
such plan.

	 	(iv)	 	During the Separation Period Employer shall
treat Employee as if he were a continuing employee for purposes of
applying the vesting and exercisability provisions of any stock-based
awards held by him on the Separation Date.

	 	(v)	 	During the Separation Period Employee shall be
eligible to participate in Employer’s medical, dental, and vision
plans, subject to Employee’s payment of any premiums required by such
plans at the premium rate applicable from time to time to an active
senior executive of Employer with the same level of coverage.

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	 	(vi)	 	Within 30 days after the Separation Date (or
such later time as prescribed by Section 12(c)), Employee shall receive
a lump-sum payment of the amount (the “Benefits Amount”) that
the Company determines is equal to the value of continued participation
(on the same basis as in effect immediately prior to the Separation
Date) throughout the Separation Period in all welfare plans and the
Employer’s executive reimbursement plan, company car, and other similar
plans and arrangements, other than plans and arrangements described in
clauses (i) through (v) of this Section 12(b), in which the Employee
participated immediately before the Separation Date. Such amount shall
be “grossed up” for all Federal, state, and local income taxes (deemed
for this purpose to be payable at the applicable withholding rates).

          (c) Notwithstanding anything to the contrary herein, any payment (other than a benefit
excludable from Employee’s gross income and other than a benefit that will in all events be paid
within 21/2 months after the year in which it ceases to be subject to a substantial risk of
forfeiture) that under Section 12(b) or 13(a) would otherwise be scheduled to be paid before the
six-month anniversary of the Separation Date shall instead be made on the Company’s first regular
payroll date on or after the six-month anniversary of the Separation Date, unless Employee is not
at such time a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, as
determined by the Company in accordance with Treas. Reg. § 1.409A-1(i).

          (d) The amounts payable pursuant to this Section 12 or Section 13, as applicable, shall be in
lieu of any other severance benefits during the Term or at the end of the Term.

     13. Change in Control.

          (a) In the event Employee’s employment with Employer terminates in a Change in Control
Termination (as hereinafter defined), Employee shall be entitled, subject to Section 12(c), to the
following:

	 	(i)	 	Within 30 days after the Separation Date
Employee shall receive (x) his Accrued Benefits (which for this purpose
shall include any VICP bonus for any performance period ending before
the Separation Date, to the extent not theretofore paid), plus (y) his
target VICP bonus multiplied by a fraction, the numerator of which is
the number of days in the performance year through his Separation Date
and the denominator of which is 365.

	 	(ii)	 	Within 30 days after the Separation Date (or
such later time as prescribed by Section 12(c)) Employee shall receive
a lump-sum payment equal to three times the sum of:

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	 	(A)	 	his then current annual base
salary (or, if greater, his annual base salary as in effect
immediately prior to the commencement of the Change in Control
Period);
	 
	 	(B)	 	his then current VICP annual
target bonus;
	 
	 	(C)	 	the maximum amount (based on the
assumptions described in the last sentence of Section
12(b)(iii)) of Employer contributions and credits (including
matching contributions and credits) for a full plan year under
all of the Company’s qualified or nonqualified retirement or
deferred compensation plans that are account balance plans; and
	 
	 	(D)	 	the Benefits Amount (as defined
in Section 12(b)(vi), but without excluding the value of
medical, dental, and vision plan participation described in
Section 12(b)(v)), grossed up in the manner described in Section
12(b)(vi).

	 	(iii)	 	Employee shall be entitled to the Gross-Up
Payment, if any, determined in accordance with Schedule A.

          (b) Definitions.

	 	(i)	 	“Cause” shall mean the occurrence of
any of the following during the Change in Control Period:

	 	(A)	 	The willful and continued failure
of Employee to perform substantially Employee’s duties with the
Company (other than any such failure resulting from incapacity
due to physical or mental illness), after a written demand for
substantial performance is delivered to Employee by the Board
that specifically identifies the manner in which the Board
believes that the Employee has not substantially performed
Employee’s duties, and after Employee has been given at least 30
days in which to cure such failure; or

	 	(B)	 	The willful engaging by Employee
in illegal conduct or gross misconduct that is materially and
demonstrably injurious to the Company. For purposes of this
provision, no act or failure to act, on the part of Employee,
shall be considered “willful” unless it is done, or omitted to
be done, by Employee in bad faith or without reasonable belief
that Employee’s action or omission was in the best interests of
the Company. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the Board or
based upon the advice of counsel for the

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	 	 	 	Company shall be conclusively presumed to be done, or omitted
to be done, by the Employee in good faith and in the best
interests of the Company.

The cessation of employment of Employee shall not be deemed to be for
Cause unless and until there shall have been delivered to Employee a
copy of a resolution duly adopted by the affirmative vote of not less
than three-quarters of the entire membership of the Board at a
meeting of the Board called and held for such purpose (after
reasonable notice is provided to Employee and Employee is given an
opportunity, together with counsel, to be heard before the Board),
finding that, in the good faith opinion of the Board, Employee is
guilty of the conduct described in paragraph (a) or (b) above, and
specifying the particulars thereof in detail.

	 	(ii)	 	“Change in Control” shall mean the
first to occur of any of the following events, but only to the extent
that such event is described in Section 409A(a)(2)(A)(v) of the Code:

	 	(A)	 	any person, or more than one
person acting as a group (including owners of a corporation that
enters into a merger, consolidation, purchase, or acquisition of
stock, or similar business transaction with the Company, but not
including persons solely because they purchase stock of the
Company at the same time or as a result of the same public
offering), acquires (or has acquired within the 12-month period
ending on the date of the most recent acquisition by such
person) securities of the Company representing 30 percent or
more of the combined voting power of the Company’s then
outstanding securities;

	 	(B)	 	during any period of 12 months
(not including any period prior to the execution of this
Agreement), a majority of members of the Company’s Board of
Directors (the “Board”) are replaced by directors whose
appointment or election is not endorsed by a majority of the
members of the Board before the date of the appointment or
election;

	 	(C)	 	any person, or more than one
person acting as a group (including owners of a corporation that
enters into a merger, consolidation, purchase, or acquisition of
stock, or similar business transaction with the Company, but not
including persons solely because they purchase stock of the
Company at the same time or as a result of the same public
offering), acquires ownership of stock of Employer that,
together with stock held by such person or group,

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constitutes more than 50 percent of the combined voting power
of the stock of the Company but only if such person or group
did not own more than 50 percent of the combined voting power
of the stock of the Company prior to such acquisition; or

	 	(D)	 	any person, or more than one
person acting as a group (including owners of a corporation that
enters into a merger, consolidation, purchase or acquisition of
assets, or similar business transaction with the Company, but
not including persons solely because they purchase assets of the
Company at the same time), acquires (or has acquired during the
12-month period ending on the date of the most recent
acquisition by such person or group) assets from the Company
that have a total gross fair market value of more than 50
percent of the total gross fair market value of all of the
assets of the Company immediately before such acquisition or
acquisitions, except where the assets are transferred to (i) a
shareholder of the Company (immediately before the asset
transfer) in exchange for or with respect to its stock, (ii) an
entity, 50 percent or more of the total value or voting power of
which is owned, directly or indirectly, by the Company, (iii) a
person, or more than one person acting as a group, that owns,
directly or indirectly, 50 percent or more of the total value or
voting power of all outstanding stock of the Company, or (iv) an
entity, at least 50 percent of the total value or voting power
of which is owned, directly or indirectly, by a person described
in (iii) above.

Notwithstanding the foregoing, unless a majority of the incumbent
Board determines otherwise, no Change in Control shall be deemed to
have occurred with respect to Employee if the Change in Control
results from actions or events in which he is a participant in a
capacity other than solely as an officer, employee or member of the
Board.

	 	(iii)	 	“Change in Control Period” shall mean
the 24-month period beginning on the effective date of a Change in
Control.

	 	(iv)	 	“Change in Control Termination” shall
mean Employee’s Separation from Service during the Change in Control
Period by reason of (i) Employer’s termination of Employee’s employment
other than for Cause (as defined in this Section 13), or (ii)
Employee’s resignation for Good Reason (as defined in this Section 13);
provided, however, that a Change in Control

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Termination shall not include a Separation from Service by reason of
the Employee’s death or Disability.

	 	(v)	 	“Good Reason” shall mean the occurrence
of any of the following during the Change in Control Period:

	 	(A)	 	the assignment to Employee of any
duties inconsistent in any respect with Employee’s position
(including status, offices, titles and reporting requirements),
authority, duties or responsibilities immediately prior to the
Change in Control Date, or any other action by the Company which
results in a diminution in such position, authority, duties or
responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and
which is remedied by the Company promptly after receipt of
notice thereof given by Employee;
	 
	 	(B)	 	a failure by the Company (other
than an isolated, insubstantial and inadvertent failure not
occurring in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Employee)
to pay or provide any one or more of the following:

	 	(1)	 	base salary at a
rate not less than the rate in effect immediately prior
to the Change in Control Date;
	 
	 	(2)	 	participation in
any bonus plan sponsored by the Company, on a basis
consistent with that of other comparable employees;
	 
	 	(3)	 	benefits under
welfare plans, practices, policies, and programs
(including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life,
group life, accidental death and travel accident
insurance plans and programs) to the extent applicable
generally to other peer executives of the Company, but
in no event providing benefits that are less favorable,
in the aggregate, than the most favorable of such plans,
practices, policies, and programs provided generally at
any time after the Change in Control Date to other peer
executives of the Company;
	 
	 	(4)	 	participation in
all fringe benefits, deferred compensation programs,
expense reimbursement programs, vacation, company car or
car allowance, as applicable (if the Employee was
receiving such

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	 	 	 	benefit prior to the Change in Control Date),
incentive, savings and retirement plans (including
the Company’s 401(k) plan and Employee Stock Purchase
Plan), practices, policies, and programs applicable
generally to other peer executives of the Company,
but in no event providing benefits that are less
favorable, in the aggregate, than the most favorable
of such plans, practices, policies, and programs
provided generally at any time after the Change in
Control Date to other peer executives of the Company;
or

	 	(5)	 	a continuation of
annual stock-based awards (or other types of long-term
incentive compensation) with a value no less than the
value of the last stock-based award received by the
Employee immediately before the Change in Control Date;

	 	(C)	 	the Company’s requiring the
Employee to be based at any office or location that is 45 miles
or more from the office or location where the Employee is based
immediately before the Change in Control Date, or the Company’s
requiring the Employee to travel on Company business to a
substantially greater extent than required immediately prior to
the Change in Control Date; or
	 
	 	(D)	 	the Company’s failure to require
any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to assume expressly and
agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if
no such succession had taken place.

     14. Non-Competition.

          (a) The parties agree and acknowledge that the Company’s profitability, reputation and
competitive position in the marketplace depend, in part, on the development and use of highly
proprietary knowledge and confidential information and continued amicable relations with the
Company’s suppliers and customers. Employee agrees that he will not cause, request, solicit, or
advise any suppliers or customers of the Company during the Term or for two years thereafter, to
curtail or cancel their business with the Company, other than in the ordinary course of business.

          (b) Employee agrees that during Employee’s employment with Employer and for a period of two
years thereafter (with respect to which Employee may be receiving payment under Section 12(b) or 13
hereof, as applicable), the Employee will not:

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	 	(i)	 	Render services, either directly or indirectly,
to any Competitor in connection with the development, marketing,
promotion, distribution, sale, or licensing of any Competitive
Services; or
	 
	 	(ii)	 	Engage, either directly or indirectly, within
the Restricted Area, either on behalf of the Employee or as a
representative, agent, employee, officer, director, trustee,
stockholder or partner, joint venturer or investor, in the development,
marketing, promotion, distribution, sale, or licensing of any
Competitive Services.
	 
	 	(iii)	 	The capitalized terms used in this Section
14(b) shall have the meanings as follows:

	 	(A)	 	“Business” shall mean the
business and operations of the Company.
	 
	 	(B)	 	“Competitive Services”
shall mean a service or product, developed, marketed,
distributed or provided by a Competitor, which is the same as or
is directly competitive with a service or product constituting a
part of the Business and with respect to which the Employee has
acquired confidential information by reason of the Employee’s
position and duties with the Company.
	 
	 	(C)	 	“Competitor” shall mean
(a) any person engaged in, or about to become engaged in, the
development, marketing, distribution or provision of any
Competitive Service on behalf of other parties, and (b) any
customer of the Company, as of the date of this Agreement or
during the Term, which begins to perform for itself services
previously provided by the Company.
	 
	 	(D)	 	“Restricted Area” shall
mean, collectively: (a) Outagamie, Winnebago and Brown counties
in the State of Wisconsin; and (b) anywhere else within a
twenty-five (25) mile radius of any location in any U.S. city in
which the Company had, at any time during the Term, a place of
business at or through which it engaged in the Business.

	 	(iv)	 	Nothing in Section 14(b) shall prohibit the
Employee from owning or acquiring securities of any corporation or
other business enterprise that may be engaged in activities described
in this Section, provided that: (A) the Employee is not an officer,
director or employee of, or consultant to, such corporation or business
enterprise; (B) such securities are held by the Employee for investment
purposes only and represent less than five percent (5%)

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of the total voting power and of the total equity interests of such
corporation or business enterprise; and (C) such securities are
listed on a national securities exchange or are regularly quoted in
the over-the-counter market by one or more members of the National
Association of Securities Dealers.

	 	(v)	 	It shall not be deemed a violation of this
Section 14(b) if the Employee accepts employment with a business entity
which is diversified and made up of separate divisions in which, as to
parts of its business, is not a Competitor, provided that Employer
shall be furnished prior to such employment definitive written
assurances satisfactory to it, separately from the Employee and such
business entity, that the Employee will not be expected, required or
permitted to, and in fact does not, render services directly or
indirectly to a division or a part of such business entity which
division or part is a Competitor.

          (c) The parties agree that the profitability and reputation of Employer also depend on
employment relationships with its employees. Employee agrees that he will not cause, request, or
advise any employees of Employer during the Term to terminate or curtail their employment with the
Company during the Term (except for performance related terminations in accordance with Employer
standards, in consultation with Employer’s Human Resources Department) and for two years after the
Term.

          (d) During the Term, Employee shall not be an officer or employee of any other business entity
without Employer’s prior written consent, except as otherwise permitted herein.

     15. Confidentiality. Employee recognizes that as a key member of the staff of
Employer, Employee occupies a position of trust with respect to business information of a secret or
confidential nature, which is the property of the Company, and which was imparted to or developed
by Employee from time to time in the course of Employee’s duties. Employee, therefore, agrees that:

          (a) Employee will not at any time or in any manner, directly or indirectly, use or disclose
such information, except as specifically directed to do so by Employer or a court of competent
jurisdiction;

          (b) immediately upon termination of employment with Employer, he will promptly return to
Employer, at its direction and expense, any and all copies of records, drawings, writings,
materials, memoranda, computer programs and printouts and other data pertaining to such secret or
confidential information; provided, however, that Employee shall be permitted to retain his
personal property; and

          (c) information of a secret or confidential nature is any information that would constitute a
“trade secret,” including but not limited to, test programs and systems

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relating to inventory control or any other aspect of the business of the Company; patents and
patent applications; copyrights or copyright applications, inventions and improvements, whether
patentable or not; writings, whether copyrightable or not; development projects; machines,
policies, processes, formulas, techniques, normative data, know-how, data, data bases, computer
design, computer programs or software and facts relating to development and implementation of
inventory controls relative to the business of the Company, requirements for systems and programs,
customer lists, customers’ purchases or rentals, business records, price lists, business plans and
forecasts and other trade secrets.

          (d) Provided, however, that subparagraphs (a) and (c) above shall not apply to any such
information which (1) was or is in the public domain or (2) hereafter through an act or failure
becomes information generally available to the public.

          (e) In addition, the terms of Employer’s Agreement with Regard to Proprietary Information
Including Inventions, Patents, Copyrights, Trade Secrets, and Confidential Information, dated as of
June 1, 1990 between Employer and Employee (the “Trade Secrets Agreement”) shall remain in
full force and effect.

     16. Remedies. In addition to other remedies provided by law or equity, upon a breach
by Employee of any of the covenants contained in Sections 14 and 15 hereof, Employer shall be
entitled to seek an injunction against Employee prohibiting any further breach of the covenants
contained herein. The parties agree that it is impossible to measure in money the damages that may
accrue to the Company by reason of Employee’s failure to perform any of his obligations under this
Agreement. Therefore, in the event of any controversy concerning rights or obligations under this
Agreement, such rights or obligations may be enforceable in a court of competent jurisdiction at
law or equity by a decree of specific performance or, if the Company elects, by obtaining damages
or such other relief as the Company may elect to pursue. Such remedies, however, shall be
cumulative and nonexclusive and shall be in addition to any other remedies which the Company may
have.

     17. Assignment. The rights, duties and obligations hereunder may not be assigned or
delegated by either party without the other’s written consent.

     18. Notice. Any notice (including notice of change of address) permitted or required
to be given pursuant to the provisions of this Agreement shall be made as provided in the Purchase
Agreement.

     19. Waiver. The failure to enforce any provision of this Agreement by either party
shall not operate or be construed as a waiver of any provision or obligation of either party.

     20. Invalidity of Any Provision. The provisions of this Agreement are severable, it
being the intention of the parties hereto that should any provisions hereof be invalid or
unenforceable, such invalidity or unenforceability of any provision shall not affect the remaining
provisions hereof, but the same shall remain in full force and effect as if such invalid or
unenforceable provisions were omitted.

- 14 -

 

     21. Section 409A. This Agreement shall be interpreted and administered in accordance
with Section 409A of the Code. If Employee or the Company determines that any provision of the
Agreement is or might be inconsistent with the requirements of Section 409A, the parties shall
attempt in good faith to agree on such amendments to the Agreement as may be necessary or
appropriate to avoid adverse tax consequences to Employee under Section 409A of the Code. No
provision of the Agreement shall be interpreted to transfer any liability for failure to comply
with Section 409A from Employee or any other individual to the Company.

     22. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Wisconsin.

     23. Headings. Headings in this Agreement are for informational purposes only and
shall not be used to construe the intent of this Agreement.

     24. Counterparts. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same agreement.

     25. Reasonableness of Restrictions. EMPLOYEE HAS HAD THE OPPORTUNITY TO CONSULT
COUNSEL, HAS READ THIS AGREEMENT AND AGREES THAT THE CONSIDERATION PROVIDED BY EMPLOYER IS FAIR AND
REASONABLE AND FURTHER AGREES THAT THE POST-EMPLOYMENT RESTRICTIONS ON EMPLOYEE’S ACTIVITIES ARE
LIKEWISE FAIR AND REASONABLE.

     26. Amendment. This Agreement may be further amended or canceled by mutual agreement
of the parties in writing without the consent of any other person and, so long as Employee lives,
no person, other than the parties hereto, shall have any rights under or interest in this Agreement
or the subject matter hereof.

     27. Entire Agreement. This Agreement, together with the Trade Secrets Agreement and
the other documents and materials referred to herein or therein (collectively, the “Effective
Agreements”), constitute the entire understanding of the parties with respect to the subject
matter hereof. There are no restrictions, promises, warranties, covenants or undertakings other
than those expressly set forth herein and therein. The Effective Agreements supersede all prior
negotiations, agreements and undertakings between the parties with respect to such subject matter,
including without limitation the Prior Agreement and the Change in Control Agreement entered into
prior to the effective date hereof.

- 15 -

 

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

	 	 	 	 	 
	 	PLEXUS CORP.

 	 
	 	By:  	/s/ Ginger M. Jones
 	 
	 	 	Ginger M. Jones, Vice President and CFO 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	EMPLOYEE:

 	 
	 	/s/ Dean A. Foate
 	 
	 	Dean A. Foate 	 
	 	 	 

- 16 -

 

	 	 	 	 	 

SCHEDULE A

Additional Payment

	 	A.1.     	Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that any payment or distribution by the
Company to or for the benefit of Employee (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement
or otherwise, but determined without regard to any additional
payments required under this Schedule A) (a “Payment”) would be
subject to the excise tax imposed by Section 4999 of the Code or any
interest or penalties are incurred by Employee with respect to such
excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise
Tax”), then Employee shall be entitled to receive an additional
payment (a “Gross-Up Payment”) in an amount such that after payment
by Employee of all taxes (including any interest or penalties imposed
with respect to such taxes), including, without limitation, any
income taxes (and any interest and penalties imposed with respect
thereto) and Excise Tax imposed upon the Gross-Up Payment, Employee
retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments. The Gross-Up Payment will be made by the
end of Employee’s taxable year next following Employee’s taxable year
in which Employee remits the related taxes, in accordance with
Section 409A of the Code and Treas. Reg. § 1.409A-3(i)(1)(v) (or any
similar or successor provisions).
	 
	 	A.2     	Subject to the provisions of Section A.3, all determinations required
to be made under Section A.1, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, shall
be made by such certified public accounting firm as may be designated
by the Company (the “Accounting Firm”) and consented to by the
Employee (such consent not to be unreasonably withheld) that shall
provide detailed supporting calculations both to the Company and
Employee within 15 business days of the receipt of notice from
Employee that there has been a Payment, or such earlier time as is
requested by the Company. All fees and expenses of the Accounting
Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Schedule A, shall be paid by the Company
to Employee within five days of the receipt of the Accounting Firm’s
determination. If the Accounting Firm determines that no Excise Tax
is payable by Employee, it shall furnish Employee with a written
opinion that failure to report the Excise Tax on Employee’s
applicable federal income tax return would not result in the
imposition of a negligence or similar penalty. Any determination by
the Accounting Firm shall be binding upon the Company and Employee.
As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Accounting
Firm hereunder, it is possible that Gross-Up Payments that will not
have been made by the Company should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder. In
the event that the Company exhausts its remedies pursuant to Section
A.3 and Employee thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be
paid by the Company to or for the

- 17 -

 

	 	 	benefit of the Employee as described in A.1 above, by the end of the Employee’s
taxable year next following the Employee’s taxable year in which the Employee
remits the related taxes, and to the extent that such taxes are not remitted,
such payment shall be made by the end of the calendar year after the year in
which the audit is completed or there is a final nonappealable settlement or
other resolution of the litigation.
	 
	 	A.3     	Employee shall notify the Company in writing of any
claim by the Internal Revenue Service that, if
successful, would require the payment by the Company
of the Gross-Up Payment. Such notification shall be
given as soon as practicable but no later than ten
business days after Employee is informed in writing
of such claim and shall apprise the Company of the
nature of such claim and the date that such claim is
requested to be paid. Employee shall not pay such
claim prior to the expiration of the 30-day period
following the date that it gives such notice to the
Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim
is due). If the Company notifies Employee in writing
prior to the expiration of such period that it
desires to contest such claim, Employee shall:

	 	(a)	 	Give the Company any information reasonably requested by the Company relating
to such claim,
	 
	 	(b)	 	Take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney reasonably
selected by the Company,
	 
	 	(c)	 	Cooperate with the Company in good faith in order effectively to contest such
claim, and
	 
	 	(d)	 	Permit the Company to participate in any proceedings relating to such claim;
provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest
and shall indemnify and hold Employee harmless, on an after-tax basis, for any Excise
Tax or income tax (including interest and penalties with respect thereto) imposed as a
result of such representation and payment of costs and expenses. Without limitation on
the foregoing provisions of this Section A.3(d), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may pursue
or forgo any and all administrative appeals, proceedings, hearings and conferences with
the taxing authority in respect of such claim and may, at its sole option, either
direct Employee to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and Employee agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and in one (1)
or more appellate courts, as the Company shall determine; provided, however, that if
the Company directs Employee to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to Employee, on an interest-free basis and shall
indemnify and hold Employee harmless, on an after-tax basis, from any

- 18 -

 

	 	 	 	Excise Tax or income tax (including interest or penalties with respect thereto)
imposed with respect to such advance or with respect to any imputed income with
respect to such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of Employee with
respect to which such contested amount is claimed to be due is limited solely to
such contested amount. Furthermore, the Company’s control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and Employee shall be entitled to settle or contest, as the case may be,
any other issue raised by the Internal Revenue Service or any other taxing
authority.

	A.4     	 	If, after the receipt by Employee of an amount advanced by the Company pursuant to Section
A.3, Employee becomes entitled to receive any refund with respect to such claim, Employee
shall (subject to the Company’s complying with the requirements of Section A.3) promptly pay
to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Employee of an amount advanced
by the Company pursuant to Section A.3, a final determination of the claim by the Internal
Revenue Service, or other final nonappealable settlement or resolution of such claim, is not
made by the end of the calendar year following the year in which the Employee remits such
taxes, then such advance shall be forgiven as of the last day of such year and shall not be
required to be repaid.

- 19 -exv10w2

Exhibit 10.2

	 	 	Change in Control Agreement
	 
	 	 	This AGREEMENT (the “Agreement”) is made as of the Effective Date by and between
Plexus Corp., a Wisconsin corporation (the “Company”) and the Employee.
	 
	 	 	Recital:
	 
	 	 	The Board of Directors (the “Board”) of the Company has determined that it is in the
best interests of the Company and its shareholders to reinforce and encourage the Employee’s
continued attention and dedication to the Employee’s assigned duties without distraction by
entering into compensation arrangements that will provide financial security in the event of
a Change in Control.
	 
	 	 	Now, therefore, it is hereby agreed as follows:
	 
	1.	 	Defined Terms. Capitalized terms not otherwise defined in the main body of this Agreement
have the meaning ascribed thereto in Schedule A and Exhibit 1.
	 
	2.	 	Change in Control. No benefits shall be payable under this Agreement unless there shall have
been a Change in Control.
	 
	3.	 	Term of Agreement. This Agreement shall be effective for the period commencing on the
Effective Date and ending on the Initial Term Date; provided, however, that:

	 	3.1.	 	On an annual basis the term of this Agreement shall automatically be extended
for an additional fiscal year unless, not later than 30 days before the Agreement would
otherwise expire, the Company shall have given notice that it does not wish to extend
this Agreement; and
	 
	 	3.2.	 	Notwithstanding any such notice by the Company, if a Change in Control shall
have occurred during the original or any extended term of this Agreement, this
Agreement shall remain in effect until the Company shall have performed all its
obligations hereunder.

	4.	 	Qualifying and Nonqualifying Separations. For purposes of this Agreement:

	 	4.1.	 	A “Qualifying Separation” means the Employee’s Separation from Service
during the Change in Control Period by reason of (i) the Company’s termination of the
Employee’s employment other than for Cause, or (ii) the Employee’s resignation for Good
Reason; provided, however, that a Qualifying Separation shall not include a Separation
from Service by reason of the Employee’s death or Disability.

 

 

	 	4.2.	 	A “Nonqualifying Separation” means a Separation from Service during the
Change in Control Period, other than a Qualifying Separation.

	5.	 	Company’s Obligations Upon a Qualifying Separation. In the event of the Employee’s
Qualifying Separation:

	 	5.1.	 	Accrued Obligations. The Company shall pay to the Employee the Accrued
Obligations in cash within 30 days after the Separation Date.
	 
	 	5.2.	 	Lump-Sum Payment. The Company shall pay to the Employee in cash within
30 days after the Separation Date (except as otherwise provided by Section 7) the sum
of the following amounts:

	 	(a)	 	The Employee’s Target Bonus, prorated through the Separation
Date using a fraction, the numerator of which is the number of days in the
Separation Year through the Separation Date, and the denominator of which is
365;
	 
	 	(b)	 	The Separation Multiplier times the sum of the Employee’s
Annual Base Salary, the Target Bonus, and the Retirement Differential; and
	 
	 	(c)	 	An amount such that, after payment of all Federal, state, and
local income taxes on such amount (deemed for this purpose to be payable at the
applicable withholding rates), the Employee retains the amount that the Company
determines is equal to the value of continued participation (on the same
basis), for a number of years equal to the Separation Multiplier, in all group
health and other welfare plans and the Company’s executive reimbursement plan,
company car, and other similar plans and arrangements in which the Employee
participated immediately before the Separation Date or in which the Employee
participated immediately before the Change in Control Date, whichever produces
the greater benefit.

	 	5.3.	 	Outplacement. The Company shall at its sole expense provide the
Employee with executive-level outplacement services, the scope and provider of which
shall be selected by the Company in its sole discretion, for a period of 15 months
beginning on the Separation Date.
	 
	 	5.4.	 	Other Benefits. To the extent not theretofore paid or provided, and
without duplication of any other benefits hereunder, the Company shall timely pay or
provide to the Employee such other amounts or benefits as are required to be paid or
provided, or that the Employee is eligible to receive, under any written plan, program,
policy or contract or agreement of Plexus (collectively, “Other Benefits”).
	 
	 	5.5.	 	Additional Payment. The Company shall timely pay the Employee the
Gross-Up Payment, if any, determined in accordance with Schedule B.

2

 

	 	5.6.	 	No Duplication of Benefits. Notwithstanding Section 5.4, this
Agreement supersedes and terminates the Employee’s right to any severance benefits
otherwise due to the Employee upon a Qualifying Termination under any other plan or
policy of the Company or any written employment agreement between the Employee and the
Company.

	6.	 	Company’s Obligations Upon a Nonqualifying Separation. In the event of the Employee’s
Nonqualifying Separation:

	 	6.1.	 	Accrued Obligations. The Company shall pay to the Employee the Accrued
Obligations in cash within 30 days after the Separation Date.
	 
	 	6.2.	 	Other Benefits. The Company shall timely pay or provide to the
Employee the Other Benefits.

	7.	 	Six-Month Suspension. If the Company determines that the Employee is a Specified Employee as
of the Separation Date, then any payment required by Sections 5.2, 5.4 and 6.2 shall be made
on the Company’s first regular payroll date (the “Six-Month Date”) on or after the
six-month anniversary of the Separation Date, and any payment required by Section 5.5 shall be
made on the later of the Six-Month Date or the date such payment would be made without regard
to this Section 7.
	 
	8.	 	Governing Law.

	 	8.1.	 	This Agreement shall be governed by and construed in accordance with the laws
of the State of Wisconsin, without reference to principles of conflict of laws.
	 
	 	8.2.	 	The jurisdiction and venue for any disputes arising under, or any action
brought to enforce, or otherwise relating to, the Agreement shall be exclusively in the
courts in the State of Wisconsin, including the Federal Courts located therein or
responsible therefore (should Federal jurisdiction exist).

	9.	 	Miscellaneous
	 
	 	 	Additional terms of this Agreement are set forth in Schedule C.

3

 

IN WITNESS WHEREOF, the Employee has hereunto set the Employee’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	PLEXUS CORP.	 	 	 	EMPLOYEE:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

4

 

SCHEDULE A

Defined Terms

Terms not otherwise defined in the main body of the Agreement shall have the meanings set forth
below and in Exhibit 1.

“Accrued Obligations” means:

	 	(a)	 	the Employee’s Annual Base Salary through the Separation Date to the extent not
theretofore paid;
	 
	 	(b)	 	the Employee’s VICP bonus for any performance period ending before the Separation Date,
to the extent not theretofore paid; and
	 
	 	(c)	 	the Employee’s accrued but unpaid vacation pay.

“Annual Base Salary” means the Employee’s annual base salary immediately before the Separation Date
or immediately before the Change in Control, whichever is greater.

“Cause” means:

	 	(a)	 	The willful and continued failure of the Employee to perform substantially the
Employee’s duties with Plexus (other than any such failure resulting from incapacity due to
physical or mental illness), after a written demand for substantial performance is
delivered to the Employee by the Board, the Chief Executive Officer of the Company, or the
President of the Company that specifically identifies the manner in which the Board, the
Chief Executive Officer, or the President believes that the Employee has not substantially
performed the Employee’s duties, and after the Employee has been given at least 30 days in
which to cure such failure; or
	 
	 	(b)	 	The willful engaging by the Employee in illegal conduct or gross misconduct that is
materially and demonstrably injurious to the Company. For purposes of this provision, no
act or failure to act, on the part of the Employee, shall be considered “willful” unless it
is done, or omitted to be done, by the Employee in bad faith or without reasonable belief
that the Employee’s action or omission was in the best interests of the Company. Any act,
or failure to act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or a senior officer of the
Company or based upon the advice of counsel for the Company shall be conclusively presumed
to be done, or omitted to be done, by the Employee in good faith and in the best interests
of the Company.

The cessation of employment of the Employee shall not be deemed to be for Cause unless and until
there shall have been delivered to the Employee a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting
of the Board called and held for such purpose (after reasonable notice is provided to the Employee
and the Employee is given an opportunity, together with counsel, to be heard before

5

 

the Board), finding that, in the good faith opinion of the Board, the Employee is guilty of the
conduct described in paragraph (a) or (b) above, and specifying the particulars thereof in detail.

“Change in Control” means the first to occur of any of the following events, but only to the extent
that such event is described in Section 409A(a)(2)(A)(v) of the Code:

	 	(a)	 	any person, or more than one person acting as a group (including owners of a
corporation that enters into a merger, consolidation, purchase, or acquisition of stock, or
similar business transaction with the Company, but not including persons or groups solely
because they purchase stock of the Company at the same time or as a result of the same
public offering), acquires (or has acquired within the 12-month period ending on the date
of the most recent acquisition by such person or group) securities of the Company
representing 30 percent or more of the combined voting power of the Company’s then
outstanding securities;
	 
	 	(b)	 	during any period of 12 months (not including any period prior to the execution of this
Agreement), a majority of members of the Board are replaced by directors whose appointment
or election is not endorsed by a majority of the members of the Board before the date of
the appointment or election;
	 
	 	(c)	 	any person, or more than one person acting as a group (including owners of a
corporation that enters into a merger, consolidation, purchase, or acquisition of stock, or
similar business transaction with the Company, but not including persons or groups solely
because they purchase stock of the Company at the same time or as a result of the same
public offering), acquires ownership of stock of the Company that, together with stock held
by such person or group, constitutes more than 50 percent of the combined voting power of
the stock of the Company but only if such person or group did not own more than 50 percent
of the combined voting power of the stock of the Company prior to such acquisition; or
	 
	 	(d)	 	any person, or more than one person acting as a group (including owners of a
corporation that enters into a merger, consolidation, purchase or acquisition of assets, or
similar business transaction with the Company, but not including persons or groups solely
because they purchase assets of the Company at the same time), acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by such person
or group) assets from the Company that have a total gross fair market value of more than 50
percent of the total gross fair market value of all of the assets of the Company
immediately before such acquisition or acquisitions, except where the assets are
transferred to (i) a shareholder of the Company (immediately before the asset transfer) in
exchange for or with respect to its stock, (ii) an entity, 50 percent or more of the total
value or voting power of which is owned, directly or indirectly, by the Company, (iii) a
person, or more than one person acting as a group, that owns, directly or indirectly, 50
percent or more of the total value or voting power of all outstanding stock of the Company,
or (iv) an entity, at least 50 percent of the total value or voting power of which is
owned, directly or indirectly, by a person or group described in (iii) above.

6

 

Notwithstanding the foregoing, unless a majority of the incumbent Board determines otherwise, no
Change in Control shall be deemed to have occurred with respect to the Employee if the Change in
Control results from actions or events in which he is a participant in a capacity other than solely
as an officer, employee or member of the Board.

“Change in Control Date” means the effective date of a Change in Control.

“Change in Control Period” means the 24-month period commencing on the Change in Control Date;
provided, however, that if the Employee’s employment with the Company is terminated prior to the
date on which a Change in Control occurs, and if it is reasonably demonstrated by the Employee that
such termination (x) was at the request of a third party who has taken steps reasonably calculated
to effect a Change in Control, or (y) otherwise arose in connection with or anticipation of a
Change in Control, then the Change in Control Period shall include the period beginning on the date
immediately prior to the date of such termination and ending immediately prior to the effective
date of the Change in Control.

“Code” means the Internal Revenue Code of 1986, as amended, and as interpreted by the regulations
promulgated thereunder.

“Disability” means the absence of the Employee from the Employee’s duties with the Company on a
full-time basis for 180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician selected by the
Company or its insurers and acceptable to the Employee or the Employee’s legal representative (such
agreement as to acceptability not to be unreasonably withheld).

“Good Reason” means the occurrence of any of the following:

	 	(a)	 	the assignment to the Employee of any duties inconsistent in any respect with the
Employee’s position (including status, offices, titles and reporting requirements),
authority, duties or responsibilities immediately prior to the Change in Control Date, or
any other action by the Company which results in a diminution in such position, authority,
duties or responsibilities, excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by the Employee;
	 
	 	(b)	 	a failure by the Company (other than an isolated, insubstantial and inadvertent failure
not occurring in bad faith and which is remedied by the Company promptly after receipt of
notice thereof given by the Employee) to pay or provide any one or more of the following:

	 	(1)	 	base salary at a rate not less than the rate in effect immediately
prior to the Change in Control Date;
	 
	 	(2)	 	participation in any bonus plan sponsored by Plexus, on a basis
consistent with that of other comparable employees;
	 
	 	(3)	 	benefits under welfare plans, practices, policies, and programs
(including, without limitation, medical, prescription, dental, disability, salary

7

 

	 	 	 	continuance, employee life, group life, accidental death and travel accident
insurance plans and programs) to the extent applicable generally to other peer
executives of Plexus, but in no event providing benefits that are less
favorable, in the aggregate, than the most favorable of such plans, practices,
policies, and programs provided generally at any time after the Change in
Control Date to other peer executives of Plexus;
	 
	 	(4)	 	participation in all fringe benefits, deferred compensation programs,
expense reimbursement programs, vacation, company car or car allowance, as
applicable (if the Employee was receiving such benefit prior to the Change in
Control Date), incentive, savings and retirement plans (including the Company’s
401(k) plan and Employee Stock Purchase Plan), practices, policies, and programs
applicable generally to other peer executives of Plexus, but in no event providing
benefits that are less favorable, in the aggregate, than the most favorable of such
plans, practices, policies, and programs provided generally at any time after the
Change in Control Date to other peer executives of Plexus; and
	 
	 	(5)	 	a continuation of annual stock-based awards (or other types of
long-term incentive compensation) with a value no less than the value of the last
stock-based award received by the Employee immediately before the Change in Control
Date;

	 	(c)	 	the Company’s requiring the Employee to be based at any office or location that is 45
miles or more from the office or location where the Employee is based immediately before
the Change in Control Date, or the Company’s requiring the Employee to travel on Company
business to a substantially greater extent than required immediately prior to the Change in
Control Date; or
	 
	 	(d)	 	any failure by the Company to comply with and satisfy Section C.1(c) of Schedule C of
this Agreement.

For purposes of this definition, any good faith determination of “Good Reason” made by the Employee
shall be conclusive. Anything in this Agreement to the contrary notwithstanding, a termination by
the Employee for any reason during the 30-day period commencing on the first anniversary of the
Change in Control Date shall be deemed to be a termination for Good Reason for all purposes of this
Agreement.

“Initial Term Date” means the date set forth on Exhibit 1.

“Plexus” means the Company and any corporation, partnership, division, joint venture, or other
organization which, together with the Company, would be treated as a single employer under Section
414(b) or (c) of the Code if a 50 percent ownership level were substituted for an 80 percent
ownership level for purposes of applying such section.

“Retirement Differential” means the maximum amount of annual Company contributions and credits
(including matching contributions and credits, but excluding bonuses under the

8

 

Company’s Variable Incentive Compensation Plan (or any successor short-term incentive plan)) for a
full plan year under all of the Company’s qualified or nonqualified retirement plans that are
account balance plans.

For purposes of this definition, (x) the Employee shall be deemed to be fully vested, (y) it shall
be assumed that Employee’s total annual cash compensation and total targeted cash compensation is
equal to Employee’s total target cash compensation as in effect immediately before the Separation
Date, and (z) for purposes of determining the maximum amount of Company matching contributions or
credits it shall be assumed that the Employee elects to maximize elective deferrals to such plan.

“Separation Date” means the date of the Employee’s Separation from Service.

“Separation from Service” means the Employee’s “separation from service” (within the meaning of
Section 409A(a)(2)(A)(i) of the Code) with Employer, as determined by the Company in accordance
with Treas. Reg. § 1.409A-1(h)(1). Unless the context clearly requires otherwise, the phrases
“terminates employment,” “termination of employment,” and similar phrases refer to the Employee’s
Separation from Service.

“Separation Multiplier” as of the Effective Date has the meaning set forth in Exhibit 1. The
Company shall notify the Employee prior to the beginning of each fiscal year of the Company that
begins after the Effective Date (for as long as the Agreement remains in effect), the Separation
Multiplier applicable for such fiscal year. The Separation Multiplier applicable to the Employee
during a fiscal year of the Company shall not be reduced with respect to such fiscal year without
the Employee’s written consent after the Employee receives notice from the Company of such
Separation Multiplier. In the event of a Change in Control, the Separation Multiplier applicable
to the Employee at the time of the Change in Control shall not be reduced during the Change in
Control Period without the Employee’s written consent.

“Separation Year” means the Company’s taxable year that includes the Separation Date.

“Specified Employee” has the meaning prescribed by Section 409A(a)(2)(B)(i) of the Code, as
determined by the Company in accordance with Treas. Reg. § 1.409A-1(i).

“Target Bonus” means the Employee’s annual target bonus under the Plexus Corp. Variable Incentive
Compensation Plan or successor short-term incentive plan.

9

 

SCHEDULE B

Additional Payment

	B.1.	 	Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined
that any payment or distribution by the Company to or
for the benefit of the Employee (whether paid or
payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise, but
determined without regard to any additional payments
required under this Schedule B) (a “Payment”) would
be subject to the excise tax imposed by Section 4999
of the Code or any interest or penalties are incurred
by the Employee with respect to such excise tax (such
excise tax, together with any such interest and
penalties, are hereinafter collectively referred to
as the “Excise Tax”), then the Employee shall be
entitled to receive an additional payment (a
“Gross-Up Payment”) in an amount such that after
payment by the Employee of all taxes (including any
interest or penalties imposed with respect to such
taxes), including, without limitation, any income
taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Employee retains an amount of
the Gross-Up Payment equal to the Excise Tax imposed
upon the Payments. The Gross-Up Payment will be made
by the end of the Employee’s taxable year next
following the Employee’s taxable year in which the
Employee remits the related taxes, in accordance with
Section 409A of the Code and Treas. Reg. §
1.409A-3(i)(1)(v) (or any similar or successor
provisions).
	 
	B.2	 	Subject to the provisions of Section B.3, all
determinations required to be made under Section B.1,
including whether and when a Gross-Up Payment is
required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such
determination, shall be made by such certified public
accounting firm as may be designated by the Company
(the “Accounting Firm”) and consented to by the
Employee (such consent not to be unreasonably
withheld) that shall provide detailed supporting
calculations both to the Company and the Employee
within 15 business days of the receipt of notice from
the Employee that there has been a Payment, or such
earlier time as is requested by the Company. All
fees and expenses of the Accounting Firm shall be
borne solely by the Company. Any Gross-Up Payment,
as determined pursuant to this Schedule B, shall be
paid by the Company to the Employee within five days
of the receipt of the Accounting Firm’s
determination. If the Accounting Firm determines
that no Excise Tax is payable by the Employee, it
shall furnish the Employee with a written opinion
that failure to report the Excise Tax on the
Employee’s applicable federal income tax return would
not result in the imposition of a negligence or
similar penalty. Any determination by the Accounting
Firm shall be binding upon the Company and the
Employee. As a result of the uncertainty in the
application of Section 4999 of the Code at the time
of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments that
will not have been made by the Company should have
been made (“Underpayment”), consistent with the
calculations required to be made hereunder. In the
event that the Company exhausts its remedies pursuant
to Section B.3 and the Employee thereafter is
required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such
Underpayment shall be paid by the Company to or for
the benefit of the Employee as

10

 

	 	 	described in B.1 above, by the end of the Employee’s taxable year next
following the Employee’s taxable year in which the Employee remits the related
taxes, and to the extent that such taxes are not remitted, such payment shall
be made by the end of the calendar year after the year in which the audit is
completed or there is a final nonappealable settlement or other resolution of
the litigation.
	 
	B.3	 	The Employee shall notify the Company in writing of
any claim by the Internal Revenue Service that, if
successful, would require the payment by the Company
of the Gross-Up Payment. Such notification shall be
given as soon as practicable but no later than ten
business days after the Employee is informed in
writing of such claim and shall apprise the Company
of the nature of such claim and the date that such
claim is requested to be paid. The Employee shall
not pay such claim prior to the expiration of the
30-day period following the date that it gives such
notice to the Company (or such shorter period ending
on the date that any payment of taxes with respect to
such claim is due). If the Company notifies the
Employee in writing prior to the expiration of such
period that it desires to contest such claim, the
Employee shall:

	 	(a)	 	Give the Company any information reasonably requested by the Company relating
to such claim,
	 
	 	(b)	 	Take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney reasonably
selected by the Company,
	 
	 	(c)	 	Cooperate with the Company in good faith in order effectively to contest such
claim, and
	 
	 	(d)	 	Permit the Company to participate in any proceedings relating to such claim;
provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest
and shall indemnify and hold the Employee harmless, on an after-tax basis, for any
Excise Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expenses. Without
limitation on the foregoing provisions of this Section B.3(d), the Company shall
control all proceedings taken in connection with such contest and, at its sole option,
may pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its sole
option, either direct the Employee to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Employee agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of initial
jurisdiction and in one (1) or more appellate courts, as the Company shall determine;
provided, however, that if the Company directs the Employee to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Employee, on
an interest-free basis, and shall indemnify and hold the Employee harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or penalties

11

 

	 	 	 	with respect thereto) imposed with respect to such advance or with respect to any
imputed income with respect to such advance; and further provided that any extension
of the statute of limitations relating to payment of taxes for the taxable year of
the Employee with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company’s control of the
contest shall be limited to issues with respect to which a Gross-Up Payment would be
payable hereunder and the Employee shall be entitled to settle or contest, as the
case may be, any other issue raised by the Internal Revenue Service or any other
taxing authority.

	B.4	 	If, after the receipt by the Employee of an amount advanced by the Company pursuant to
Section B.3, the Employee becomes entitled to receive any refund with respect to such claim,
the Employee shall (subject to the Company’s complying with the requirements of Section B.3)
promptly pay to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the Employee of an
amount advanced by the Company pursuant to Section B.3, a final determination of the claim by
the Internal Revenue Service, or other final non-appealable settlement or resolution of such
claim, is not made by the end of the calendar year following the year in which the Employee
remits such taxes, then such advance shall be forgiven as of the last day of such year and
shall not be required to be repaid.

12

 

SCHEDULE C

Miscellaneous Terms

	C.1	 	Successors.

	 	(a)	 	Without the prior written consent of the Company this Agreement shall not be
assignable by the Employee otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by the
Employee’s legal representatives.
	 
	 	(b)	 	This Agreement shall inure to the benefit of and be binding upon the Company
and its successors and assigns.
	 
	 	(c)	 	The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required
to perform it if no such succession had taken place.

	C.2	 	Notice. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the
other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as set forth in
Exhibit 1.
	 
	C.3	 	Captions. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.
	 
	C.4	 	Schedules. The Schedules to this Agreement constitute a part of this Agreement.
	 
	C.5	 	Entire Agreement. This Agreement sets forth the entire understanding between the Company and the Employee concerning the
Employee’s benefits in the event of his Qualifying Termination and supersedes and terminates any previous agreements
concerning such subject matter including, without limitation, the Plexus Change of Control Agreement previously entered
into between the Company and the Employee.
	 
	C.6	 	Amendments. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties
hereto or their respective successors or legal representatives.
	 
	C.7	 	Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement.
	 
	C.8	 	Withholding. The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign
taxes as shall be required to be withheld pursuant to any applicable law or regulation.
	 
	C.9	 	No Waiver. The Employee’s or the Company’s failure to insist upon strict compliance with any provision hereof, or any
other provision of this Agreement, or the failure to

13

 

	 	 	assert any right the Employee or the Company may have hereunder, including,
without limitation, the right of the Employee to terminate employment for Good
Reason pursuant to Section 5 of this Agreement, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.
	 
	C.10	 	Nature of Employment. The Employee and the Company
acknowledge that, except as may otherwise be provided
under any other written agreement between the
Employee and the Company, the employment of the
Employee by the Company is “at will.”
	 
	C.11	 	Section 409A.

	 	(a)	 	In General. This Agreement shall be interpreted and administered in
accordance with Section 409A of the Code. If the Employee or the Company determines
that any provision of the Agreement is or might be inconsistent with the requirements
of Section 409A, the parties shall attempt in good faith to agree on such amendments to
the Agreement as may be necessary or appropriate to avoid adverse tax consequences to
the Employee under Section 409A of the Code. No provision of the Agreement shall be
interpreted to transfer any liability for failure to comply with Section 409A from the
Employee or any other individual to the Company.
	 
	 	(b)	 	Transition Rule. Notwithstanding any provision in this Agreement to
the contrary, the following transition rule shall apply during 2008:

	 	(i)	 	If, under the terms of any agreement or arrangement to which
the Employee was a party and that was in effect on December 31, 2007
(“Prior Agreement”), payment of any benefit described in Section 5.2
was scheduled to begin before January 1, 2009, payment of such benefit shall
begin at the time prescribed by such Prior Agreement.
	 
	 	(ii)	 	With respect to any benefit described in Section 5.2 to which
subsection (i) above does not apply:

	 	(A)	 	Payment of such benefit shall not be made
before January 1, 2009; and
	 
	 	(B)	 	If Section 5.2 prescribes that payment of such
benefit should begin before January 1, 2009, payment of such benefit
shall begin on the Company’s first regular pay date in January 2009.

14

 

EXHIBIT 1

Individual Terms

	EX.1	 	“Effective Date” means                                         .
	 
	EX.2	 	“Initial Term Date” means the last day of the Company’s           fiscal year.
	 
	EX.3	 	“Employee” means                                             .
	 
	EX.4	 	“Separation Multiplier” (as of the Effective Date) means        .
	 
	EX.5	 	Addresses for Notices:
	 
	 	 	If to the Employee:

Address:                                        

City, State, Zip:                           

	 	 	If to the Company:

Plexus Corp.

Attention: General Counsel

55 Jewelers Park Drive

P.O. Box 156

Neenah, Wisconsin 54957-0156

15

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