Document:

Description of 2006 Executive Incentive Plan

 

Exhibit 10.25

Description of the 2006 Executive Incentive Plan of Artesyn Technologies, Inc.

     The 2006 Executive Incentive Program (EIP) is an annual executive bonus program designed to
incentivize management to achieve specified performance objectives. Each executive participating in
the plan has a targeted incentive award based on competitive practice that represents a stated
percentage of the executive’s base salary. There are four performance criteria for the 2006 EIP,
incorporating both internal and external performance measurements. For internal performance, the
EIP incorporates three financial criteria — revenue growth, earnings before interest, taxes,
depreciation and amortization (“EBITDA”) improvement, and cash improvement, as compared to fiscal
year 2005. For external performance, the Compensation Committee set one performance criterion that
measures the Company’s revenue growth over 2005 relative to a peer group of selected competitors.
Each of the four criteria is weighted as a percent of the total incentive as follows: revenue
growth (40%), EBITDA improvement (35%), cash flow improvement (10%) and revenue growth versus peers
(15%). Each of the performance criteria has a threshold, target and maximum payout level. No
incentive is paid for performance below threshold. Payment at target is 100% and payment at maximum
is 200%. In addition, there is a cap related to the maximum aggregate incentive payment under the
plan, equal to 10% of 2006 EBITDA.

     Eligibility to participate in the EIP, payment of bonus amounts and other material terms of
the Plan are described in the Current Report on Form 8-K filed by the Company on February 21, 2006.
All descriptions of the EIP are qualified by reference to the EIP, a copy of which is attached as
Exhibit 10.24 to this Annual Report.English Translation of Supply & Processing Agree.

 

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EXHIBIT 10.28

[English Translation]

ZHONG SHAN FOREIGN ECONOMIC AND TRADE COMMISSION

APPROVAL CERTIFICATE FOR FOREIGN PROCESSING AND ASSEMBLY AGREEMENTS

Zhongwaijingjia Zi No. (2002) x1314

     It is hereby acknowledged that the number 2002-13 filing made by Zhang Shan Zhongjing Import
and Export Limited Company is received. After examining and reviewing the filing, the Foreign
Processing and Assembly Agreement number zhongjingxie zi 2002-01 between ZHONG SHAN CARTON GENERAL
FACTORY COMPANY LTD and ARTESYN TECHNOLOGIES ASIA-PACIFIC LTD., dated as of December 28, 2002, is
hereby approved. The Agreement will remain effective until December 28, 2007.

     The Agreement (as set forth in the Annex hereto) becomes effective from the date of
this approval.

Dated: December 30, 2002

(official seal)

     Cc:     Zhong Shan Customs and Zhong Shan Industry and Commerce Bureau

 

 

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Supply and Processing Agreement

Contract number: Zhongjingxie Zi Number 2002-01

Date: December 28, 2002

Place: Zhang Shan City

WHEREAS, ZHONG SHAN CARTON GENERAL FACTORY LIMITED COMPANY (hereinafter “Party A”), at Qi Guan Xi
Road, Shi Qi, Zhang Shan City, telephone number 8816146, desires to develop supply-and-processing
business involving the production and assembly of computer accessories, converter wires and power
supply equipment. With the assistance of ZHONG SHAN ZHONGJING IMPORT AND EXPORT LIMITED COMPANY
(hereinafter “Business Agent”), Party A and ARTESYN TECHNOLOGIES ASIA-PACIFIC LTD. (hereinafter
“Party B”), at 13-15 Shing Wan Road, Tai Wan, Shatin, New Territories, Hong Kong, telephone number
26992868, adhering to the principle of equality and mutual benefit, negotiate and agree on the
supply and processing business involving the production and assembly of power supply equipment,
power conversion equipment and power wires, and execute an agreement as follows:

Article 1 Cooperation Terms

     Party B will provide at no consideration equipment and tools necessary for the processing and
assembly of the above-mentioned products. Titles to such equipment and tools shall belong to Party
B. Equipment already transferred and delivered under Document number “zhongjingxie zi 2000-02” has
an estimate total value of US $62,438,481.73, of which deposits and administration fee paid,
non-imported equipment has a total value of US $22,263,561.39 and the total value of imported
equipment was US$40,174,920.34 (as set forth in the Annex hereto). Party B will also
provide at no consideration the raw and accessory materials, and packing materials necessary for
the manufacturing of the above-mentioned products. Quantities and specifications thereof will be
specified in the manufacturing contract. Raw and accessory materials used for the production will
be reimbursed in accordance with their actual usage. The said equipment will be provided by the
foreign investor at no charge. The operating entity shall not be required to import the equipment
by paying foreign exchanges and the processing entity shall not be required to pay back the
equipment price with its processing fees hereunder.

     Party A shall, within the term of this agreement, provide factory space, dormitory and dining
facilities, and labor to manufacture and process products for Party B. Party A will receive
processing fees therefor. Final products will be delivered to Party B to be shipped and sold in
Hong Kong.

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	Article 2   	 	Processing Quantities, Calculation of Processing Fees and Foreign Exchange Settlement

     In order to balance production, Party A and Party B agree that within the term of this
agreement, the estimate processing fees to be paid to manufacturing and administrative personnel
will be in the range of US $3,600,000 to US $4,600,000, to be determined by the actual number of
necessary personnel. The fixed working hours for each personnel will be 21.5 days per calendar
month and 8 hours per day (for purpose of working hours hereof, nationally prescribed paid vacation
days are treated as working hours). Working hours beyond the fixed working hours shall be treated
as overtime. Within the fixed working hours, the number of manufacturing workers shall be 4,000.
The processing fees to be paid to the manufacturing workers will be calculated at ******** per
worker per month. The number of administrative staff will be 450. Processing fees to be paid to
administrative staff will be calculated at ******** per staff per
month. The number of workers may be increased or decreased in
accordance with the change of quantity of work. But in no event
will the number of workers be less than 2,800. In the event of suspension of manufacturing as a
result of Party B’s delay in short-term supply of materials, the processing fees shall be
calculated and paid on the basis of the working hours, with allowances for overtime incurred
thereafter. Annual processing and assembly quantity for computer accessories, converter wires and
power supply equipment will be 20,000,000.

     If it is warranted by actual necessities and in order to ensure employee loyalty, Party B will
pay, on a monthly basis, small-amount welfare allowances as awards and bonuses, beyond the fixed
processing fees, to senior workers and workers with various degrees of skills.

     Subject to production development and Party B’s economic situation, Party A shall have the
right to request a processing fee adjustment each year. The extent of adjustment shall be
determined in accordance with the production circumstances, subject to consultation and
confirmation by both parties.

			
	Article 3   	 	Overtime Processing Fees

     Overtime processing fees shall be calculated at one hundred fifty per cent (150%) of the
normal processing fees.

Article 4    Calculation and Foreign Exchange Settlement of Processing Fees

     Upon signing this Agreement, processing fees and all related costs shall be calculated and
foreign exchange settlement related thereto shall be made once a month, subject to confirmation
signed by Party B’s representative. The payment shall be remitted to the Business Agent after
foreign exchange settlement through the Zhong Shan Branch of Industrial and Commercial Bank of
China. And the Business Agent will then transfer the payment to Party A. If the foreign exchange
settlement is delayed, Party A shall have the right to suspend export. The last batch of

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products under the production contract will not be delivered until foreign exchange settlement is
made first.

			
	Article 5   	 	Payment of Shipping Costs, Technical Training and Insurance Provisions

     Party B shall be responsible for all shipping costs for equipment, raw and accessory
materials, and packing materials to be shipped from Hong Kong to the manufacturing factory and
final products to be shipped from the manufacturing factory to Hong Kong. If any materials or
products will be imported or exported via the Shen Zhen port, Party B shall be responsible for the
transportation costs from Hong Kong to the manufacturing factory.

     From the date the equipment is delivered to the manufacturing factory, Party B shall send
technical personnel to the manufacturing factory site to install the equipment and provide relevant
technical assistance. Party B shall be responsible for all costs related to such technical
personnel. Party A shall within its capacity and best efforts provide assistance thereto.

     Party B shall be responsible, at its own cost, for the import and export of any equipment, raw
and accessory materials, or final products, and the warehousing insurance thereof. As an
alternative, Party B may entrust Party A to apply for insurance thereof with the Zhong Shan Branch
of China People’s Insurance Company, and Party B will be responsible for the insurance cost
incurred thereof. Party B shall be responsible for any loss or damage to the equipment, raw and
accessory materials, and final products as a result of its failure to provide for insurance
thereof.

			
	Article 6   	 	Payment of Miscellaneous Charges

     Party B shall be responsible for the electrical utility costs and facsimile costs related to
Party A’s production process. Party A shall provide for backup electricity generation facilities.
In the event of power outage, Party A shall supply electricity with its backup generation
facilities immediately. Party B shall calculate and pay to Party A the electricity costs each
month together with the processing fees, based on the monthly readings of the utility meter and
unit cost of ******** per KWH.

			
	Article 7    	 	Term of the Agreement and Miscellaneous

     The term of this Agreement will be five (5) years, from December 28, 2002 to December 28,
2007. This Agreement will become effective after signing by both parties and being approved by
Party A’s authority-in-charge. Within the term of this Agreement, Party A and Party B shall
strictly comply with the terms and conditions hereunder. If this Agreement needs to be terminated
before its expiration date or to be extended beyond its expiration date, both parties shall give
3-month notice to the other party. Such termination or extension shall become

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effective after consultation and consent of both parties and approval by Party A’s
authority-in-charge. If any party terminates this Agreement before its expiration date, or any
dispute arises from or in connection with the performance of this Agreement, both parties shall
dissolve the dispute through friendly consultation. In the event no resolution can be reached
through consultation, the dispute shall be submitted to the China International Economic and Trade
Arbitration Committee (“CIETAC”) for resolution. The arbitral award by CIETAC shall be final and
binding equally on both parties.

     Both parties agree to entrust Zhong Shan Zhongjing Import and Export Limited Company as the
Business Agent for purposes of this Agreement.

     During the course of the performance of this Agreement, anything not addressed by and in this
Agreement may be amended or supplemented after consultation by both parties. Such amendment or
supplement will become effective after approval by Party A’s authority-in-charge.

     There will be six original copies of this Agreement and several counterparts hereof. The
original copies and their counterparts shall have the same effect.

	 	 	 
	Party A: _______________________________

	 	Party B: _______________________________	

	Zhong Shan Carton General Factory Limited Company

	 	Artesyn Technologies Asia-Pacific Ltd.
	 
	 	 
	By: /s/ Huang Yaoxin

	 	By: /s/ He Pinyan
	 
	 	 
	Business Agent: _______________________________
	 	 
	Zhong Shan Zhongjing Import and Export Limited Company
	 	 
	By: /s/ Huang Yaoxin
	 	 

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