Document:

exv10w1

Exhibit 10.1

SECOND AMENDMENT

TO FOURTH AMENDED AND RESTATED

WAREHOUSING CREDIT AGREEMENT

          This SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED WAREHOUSING CREDIT AGREEMENT (this
“Amendment”), made and entered into as of May 23, 2008 (the “Effective Date”), by and among
HOMEAMERICAN MORTGAGE CORPORATION, a Colorado corporation (“Borrower”), the financial institutions
which are signatories hereto (each a “Bank” and collectively, the “Banks”), and U.S. BANK NATIONAL
ASSOCIATION, as agent for the Banks (in such capacity, together with any successor agents appointed
hereunder, the “Agent”).

RECITALS

          1. The Borrower, the Agent and the Banks entered into a Fourth Amended and Restated
Warehousing Credit Agreement dated as of September 5, 2006 as amended by a First Amendment dated as
of November 2, 2007 (as amended, the “Credit Agreement”); and

          2. The Borrower, the Banks and the Agent have agreed to reduce the Aggregate Commitment Amount
and to allow the Exiting Bank (hereinafter defined) to terminate its Commitment under the Credit
Agreement upon the terms and subject to the conditions of this Amendment.

AGREEMENT

          NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto hereby covenant and agree to be bound as follows:

          Section 1. Capitalized Terms. Capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to them in the Credit Agreement, unless the context shall
otherwise require.

          Section 2. Amendments to Credit Agreement.

     2.1 Warehousing Commitment Amounts. Schedule 1.01(b) to the Credit Agreement is hereby amended
to read as set forth on Schedule 1.01(b) attached to this Amendment, which is made a part of the
Credit Agreement as Schedule 1.01(b) thereto.

          Section 3. Effectiveness of Amendments. The amendment contained in this Amendment shall become
effective upon delivery by the Borrower to the Agent of, and compliance by the Borrower with, the
following:

     3.1 This Amendment and a new Note in favor of each Bank (except the Exiting Bank) reflecting each
Bank’s new Commitment Amount duly executed by the Borrower and, as to the Amendment, the Banks.

     3.2 A certificate of the Secretary or Assistant Secretary of the Borrower (1) 

 

 

certifying that there has
been no amendment to the Articles of Incorporation or Bylaws of the Borrower since true and
accurate copies of the same were last delivered to the Agent with certificates of the Secretary or
Assistant Secretary of the Borrower, and (ii) confirming that a resolution of the Board of
Directors of the Borrower authorizes the execution, delivery and performance of this Amendment and
any other documents executed in connection herewith including the new Notes in favor of the Banks
(the “Amendment Documents”), and identifying the officers of the Borrower authorized to sign the
Amendment Documents.

     3.3 The Borrower shall have satisfied such other conditions as specified by the Agent, including
payment of all unpaid legal fees and expenses incurred by the Agent through the date of this
Amendment in connection with the Credit Agreement and the Amendment Documents.

     Section 4. Representations, Warranties, Authority, No Adverse Claim. 

     4.1 Reassertion of Representations and Warranties, No Default. The Borrower
represents that on and as of the date hereof and after giving effect to this Amendment
(a) all of the representations and warranties contained in the Credit Agreement are true,
correct and complete in all respects as of the date hereof as though made on and as of such
date, except for changes permitted by the terms of the Credit Agreement and assuming that
references to financial statements are deemed references to the most recent financial
statements provided by the Borrower under Section 4.01, and (b) there will exist no
Unmatured Event of Default or Event of Default under the Credit Agreement as amended by this
Amendment on such date.

     4.2 Authority, No Conflict, No Consent Required. The Borrower represents and
warrants that it has the power and legal right and authority to enter into the Amendment
Documents and has duly authorized as appropriate the execution and delivery of the Amendment
Documents and other agreements and documents executed and delivered by it in connection
herewith or therewith by proper corporate action, and none of the Amendment Documents nor
the agreements contained herein or therein contravenes or constitutes a default under any
agreement, instrument or indenture to which the Borrower is a party or a signatory or a
provision of the Borrower’s Articles of Incorporation, Bylaws or any other agreement or
requirement of law, or result in the imposition of any Lien on any property of the Borrower
under any agreement binding on or applicable to the Borrower or any of its property except,
if any, in favor of the Banks. The Borrower represents and warrants that no consent,
approval or authorization of or registration or declaration with any Person, including but
not limited to any governmental authority, is required in connection with the execution and
delivery by the Borrower of the Amendment Documents or other agreements and documents
executed and delivered by the Borrower in connection therewith or the performance of
obligations of the Borrower therein described, except for those which the Borrower has
obtained or provided and as to which the Borrower has delivered certified copies of
documents evidencing each such action to the Agent.

     4.3
No Adverse Claim. The Borrower warrants, acknowledges and agrees that no events have taken place and no circumstances exist at the date hereof that would give

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the
Borrower a basis to assert a defense, offset or counterclaim to any claim of the Banks with
respect to the Secured Obligations.

          Section 5. Affirmation of Credit Agreement, Further References, Affirmation of Security Interest.
The Agent, the Banks and the Borrower each acknowledge and affirm that the Credit Agreement, as
hereby amended, is hereby ratified and confirmed in all respects and all terms, conditions and
provisions of the Credit Agreement, except as amended by this Amendment, shall remain unmodified
and in full force and effect. All references in any
document or instrument to the Credit Agreement are hereby amended and shall refer to the
Credit Agreement as amended by this Amendment. The Borrower confirms to the Agent and the Banks
that the Secured Obligations are and continue to be secured by the security interest granted by the
Borrower in favor of the Agent for the benefit of the Banks under the Pledge and Security
Agreement, and all of the terms, conditions, provisions, agreements, requirements, promises,
obligations, duties, covenants and representations of the Borrower under such documents and any and
all other documents and agreements entered into with respect to the obligations under the Credit
Agreement are incorporated herein by reference and are hereby ratified and affirmed in all respects
by the Borrower.

          Section 6. Successors. The Amendment Documents shall be binding upon the Borrower, the Banks and
the Agent and their respective successors and assigns, and shall inure to the benefit of the
Borrower, the Banks and the Agent and the successors and assigns of the Banks and the Agent.

          Section 7. Legal Expenses. As provided in Section 8.03 of the Credit Agreement, the Borrower
agrees to reimburse the Agent, upon execution of this Amendment, for all reasonable out-of-pocket
expenses (including attorney fees and legal expenses of Dorsey & Whitney LLP, counsel for the Agent
determined in accordance with such counsel’s generally applicable rates which may be less than the
rates charged to the Agent in certain matters) incurred in connection with the Credit Agreement,
including in connection with the negotiation, preparation and execution of the Amendment Documents
and all other documents negotiated, prepared and executed in connection with the Amendment
Documents, and in enforcing the obligations of the Borrower under the Amendment Documents, and to
pay and save the Banks harmless from all liability for, any stamp or other taxes which may be
payable with respect to the execution or delivery of the Amendment Documents, which obligations of
the Borrower shall survive any termination of the Credit Agreement.

          Section 8. Counterparts. The Amendment Documents may be executed in several counterparts as
deemed necessary or convenient, each of which, when so executed, shall be deemed an original,
provided that all such counterparts shall be regarded as one and the same document, and either
party to the Amendment Documents may execute any such agreement by executing a counterpart of such
agreement.

          Section 9. Exiting Bank. 

     9.1 Notwithstanding Section 2.14(a) of the Credit Agreement, the Borrower, the Banks and the Agent
hereby agree to the termination of JPMorgan Chase Bank, N.A.’s (the “Exiting Bank”) Commitment
under the Credit Agreement as of the Effective Date. The Borrower, the Banks and the Agent agree
that in respect of such termination,

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the provisions of Section 2.14 of the Credit Agreement shall
be waived and that this Amendment shall govern the terms of such termination by the Exiting Bank.

     9.2 On the Effective Date, the aggregate unpaid principal amount of Loans made by the Exiting
Bank under the Credit Agreement and related Note, together with all interest, fees and other
amounts, if any, payable to the Exiting Bank thereunder as of the Effective Date (the “Payoff
Amount”), shall be repaid in full from the proceeds of Loans made by the remaining Banks, and the
Commitment of the Exiting Bank under the Credit Agreement shall terminate. The Agent shall
distribute to the Exiting Bank by no later than 3:00 P.M. (Minneapolis time) on the Effective Date,
out of the proceeds of Loans made for such purpose, the amount required to pay the Exiting Bank the
Payoff Amount in full, whereupon the Exiting Bank shall no longer be a party to the Credit
Agreement and all related documents other than in respect of rights to indemnities and similar
rights (including, without limitation, pursuant to Section 8.03 of the Credit Agreement) for events
occurring or matters relating to the period prior to the Effective Date, and the Exiting Bank shall
be released from all its obligations under the Credit Agreement and all related documents.

          Section 10. Governing Law. THE AMENDMENT DOCUMENTS SHALL BE GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAW PRINCIPLES
THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS, THEIR HOLDING COMPANIES
AND THEIR AFFILIATES.

[Remainder of this page left blank intentionally]

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          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the
date and year first above written.

	 	 	 	 	 
	 	 	HOMEAMERICAN MORTGAGE CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John J. Heaney
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Vice President and Treasurer
	 

	 	 	 	 

S-1

(Signature Page — Borrower)

 

 

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as Agent and as a
Bank
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Edwin D. Jenkins
	 

	 	 	 	 
	 

	 	Title:
	 	  Senior Vice President
	 

	 	 	 	 

S-2

(Signature Page — U.S. Bank)

 

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.

(Exiting Bank)
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kenneth A. Brock
	 

	 	 	 	 
	 

	 	Title:	 	Vice President 
	 

	 	 	 	 

S-3

(Signature Page — JPM (Exiting Bank))

 

 

	 	 	 	 	 
	 	 	GUARANTY BANK
	 
	 	 	 	 
	 

	 	By:	 	/s/ Dan M. Killian
	 

	 	 	 	 
	 

	 	Title:	 	Senior Vice President 
	 

	 	 	 	 

S-4

(Signature Page — Guaranty Bank)

 

 

	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 
	 

	 	By:	 	/s/ Heather Slapak
	 

	 	 	 	 
	 

	 	Title:	 	Vice President 
	 

	 	 	 	 

S-5

(Signature Page — Comerica Bank)exv10w16

Execution Copy

Exhibit 10.16

FLEXTRONICS INTERNATIONAL USA, INC. SECOND

AMENDED AND RESTATED 2005 SENIOR EXECUTIVE

DEFERRED COMPENSATION PLAN

     1. Purpose.

          Flextronics International USA, Inc. (the “Company”) hereby amends and restates in its entirety
the Flextronics International USA, Inc. Amended and Restated 2005 Senior Executive Deferred
Compensation Plan (as amended and restated herein, the “Plan”). The Plan sets forth the terms of
an unfunded deferred compensation plan for a select group of management, highly compensated
employees, directors and persons who have been part of a select group of management, highly
compensated employees or directors of Company who may agree, pursuant to the Deferral Agreements,
to defer certain compensation. It is intended that the Plan constitute an unfunded “top hat plan”
for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The
Plan shall be administered and construed in accordance with Section 409A of the Code and any
administrative guidance issued thereunder.

     2. Definitions.

          The following terms used in the Plan shall have the meanings set forth below:

          (a) “Affiliate” means, with respect to the Company, any entity directly or indirectly
controlling, controlled by, or under common control with the Company or any other entity designated
by the Board in which the Company or an Affiliate has an interest.

          (b) “Award Agreement” shall mean any agreement between the Company and a Participant
for the payment to the Participant of compensation that is deferred under this Plan.

          (c) “Beneficiary” shall mean any person, persons, trust or other entity designated by
a Participant to receive benefits, if any, under the Plan upon such Participant’s death. No
designation or change in designation of a Beneficiary shall be effective until received and
acknowledged in writing by the Committee or Plan Administrator.

          (d) “Board” shall mean the Board of Directors of FIL

          (e) “Change in Control” shall mean a change in the ownership or effective control of
the Company, or in the ownership of a substantial portion of its assets, within the meaning of Code
Section 409A(a)(2)(A)(v) and Treasury Regulations thereunder.

          (f) “Claimant” shall have the meaning set forth in Section 9(a).

 

 

          (g) “Code” shall mean the Internal Revenue Code of 1986, as amended, and Treasury
Regulations issued thereunder.

          (h) “Committee” shall mean the Compensation Committee appointed by the Board.

          (i) “Company” shall mean Flextronics International USA, Inc., any successor to all or
a major portion of the Company’s assets or business that assumes the obligations of the Company,
and any other corporation or unincorporated trade or business that has adopted the Plan with the
approval of the Company, and is a member of the same controlled group of corporations or the same
group of trades or businesses under common control (within the meaning of Code Sections 414(b) and
414(c) as modified by Code Section 415(h)) as the Company, or an affiliated service group (as
defined in Code Section 414(m)) which includes the Company, or any other entity required to be
aggregated with the Company pursuant to regulations under Code Sections 414(o) and 409A or any
other affiliated entity that is designated by the Company as eligible to adopt the Plan.

          (j) “Deferral Account” shall mean the recordkeeping account, and any sub-accounts if
determined by the Committee or the Plan Administrator to be necessary or appropriate for the proper
administration of the Plan, established and maintained by the Company in the name of a Participant
as provided in Section 4(b) for compensation payable to a Participant pursuant to a Deferral
Agreement.

          (k) “Deferral Agreement” shall mean an agreement executed by the Participant and the
Company, in such form as approved by the Committee or the Plan Administrator, and as may be revised
from time to time with respect to any one or more Participants by or at the direction of the
Committee or Plan Administrator, whereby (A) the Participant (i) agrees to receive certain types of
compensation in the future pursuant to the provisions of this Plan, (ii) elects to defer future
compensation such Participant would otherwise be entitled to receive in cash from the Company,
including an amount or percentage of compensation to be deferred, and/or (iii) makes such other
elections as are permitted and provides such other information as is required under the Plan, and
(B) the Participant specifies a schedule according to which the Participant will receive payout of
his or her compensation that is payable in the future under this Plan. Each Deferral Agreement
shall be consistent with this Plan and shall incorporate by its terms the provisions of this Plan.

          (l) “Deferral Day” shall mean, for each Participant, the day on which the Company is
required, by the terms of the applicable Deferral Agreement form or any other agreement between the
Participant and the Company, to credit an amount to the Participant’s Deferral Account under this
Plan.

          (m) “Disabled” shall mean a Participant who (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months; or (ii) is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income replacement benefits for a period

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of not less than 3 months under an accident and health plan covering employees of the Participant’s
employer. This definition shall be construed and administered in accordance with the requirements
of Code Section 409A(a)(2)(C) and Treasury Regulations thereunder.

          (n) “Fair Market Value” shall mean, on a given date of valuation, (i) with respect to
any mutual fund, the closing net asset value as reported in The Wall Street Journal with respect to
the date of valuation and (ii) with respect to a security traded on a national securities exchange
or the NASDAQ National Market, the closing price on the date of valuation as reported in The Wall
Street Journal.

          (o) “FIL” shall mean Flextronics International Ltd.

          (p) “Hypothetical Investments” shall have the meaning set forth in Section 4(d).

          (q) “Manager” shall have the meaning set forth in Section 4(d).

          (r) “Officers” shall have the meaning set forth in Section 8(b)(ii).

          (s) “Participant” shall mean a present or former employee or director of the Company
who participates in this Plan and any other present or former employee or director designated from
time to time by the Committee.

          (t) “Plan” shall mean this Flextronics International USA, Inc. Amended and Restated
2005 Senior Executive Deferred Compensation Plan.

          (u) “Plan Administrator” shall mean the Plan Administrator, if any, appointed pursuant
to Section 3(a).

          (v) “Released Party” shall have the meaning set forth in Section 8(b)(iii).

          (w) “Separation from Service” shall mean a Participant’s separation from service from
the Company within the meaning of Code Section 409A(a)(2)(B)(i) and Treasury Regulations
thereunder.

          (x) “Share Award Deferral” shall have the meaning set forth in Section 4(l).

          (y) “Specified Employee” shall mean a key employee (as defined in Code Section 416(i)
without regard to paragraph 5 thereof) of FIL, for so long as any of its stock is publicly traded
on an established securities market or otherwise. This definition shall be construed and
administered in accordance with the requirements of Code Section 409A(a)(2)(B)(i).

          (z) “Stock Unit” shall mean compensation in the form of a vested or unvested right to
receive shares of FIL in the future.

          (aa) “Trust” shall mean any trust or trusts established or designated by the Company
pursuant to Section 5(a) to hold assets in connection with the Plan.

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          (bb) “Trustee” shall have the meaning set forth in Section 5(a).

          (cc) “Unforeseeable Emergency” shall mean a severe financial hardship to a Participant
resulting from an illness or accident of the Participant, the Participant’s Spouse, the
Participant’s beneficiary, or a dependent (as defined in Section 152(a) of the Code) of the
Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the Participant.
This definition shall be construed and administered in accordance with the requirements of Code
Section 409A(a)(2)(B)(ii) and Treasury Regulations thereunder.

     3. Authority and Administration of the Committee and Plan Administrator.

          (a) Authorization of Committee or Plan Administrator. The Committee shall administer
the Plan and may select one or more persons to serve as the Plan Administrator. The Plan
Administrator shall have authority to perform any act that the Committee is entitled to perform
under this Plan, except to the extent that the Committee specifies limitations on the Plan
Administrator’s authority. The Plan Administrator shall be the Company’s Executive Vice President
Worldwide HR and Management Systems. Any person selected to serve as the Plan Administrator may,
but need not, be a Committee member or an officer or employee of the Company. However, if a person
serving as Plan Administrator or a member of the Committee is a Participant, such person may not
decide or vote on a matter affecting his interest as a Participant.

          (b) Administration by Committee or Plan Administrator. The Committee or Plan
Administrator shall administer the Plan in accordance with its terms, and shall have all powers
necessary to accomplish such purpose, including the power and authority to reasonably construe and
interpret the Plan, to reasonably define the terms used herein, to reasonably prescribe, amend and
rescind rules and regulations, agreements, forms, and notices relating to the administration of the
Plan, and to make all other determinations reasonably necessary or advisable for the administration
of the Plan. The Committee or Plan Administrator may appoint additional agents and delegate
thereto powers and duties under the Plan.

     4. Deferral Agreements, Deferral Accounts and Share Award Deferrals.

          (a) Deferral Agreement. The Company and any Participant may agree to defer all or a
portion of his or her compensation, under the terms provided in any Deferral Agreement form
provided to the Participant in accordance with the Plan, by executing a completed Deferral
Agreement. An election to defer compensation for a taxable year pursuant to a Deferral Agreement
must be made not later than the close of the preceding taxable year, or at such other time provided
in Treasury Regulations issued under Code Section 409A (or earlier date specified in the applicable
Deferral Agreement form); provided that, in the case of the first year in which a Participant
becomes eligible to participate in the Plan within the meaning of Code Section 409A and applicable
administrative guidance, such election may be made with respect to services to be performed
subsequent to the election within 30 days after the date the Participant becomes eligible to participate in the Plan (or earlier date specified in the
applicable Deferral Agreement form); and, in the case of any performance-based compensation based
on services performed over a period of at least 12 months, such election may be made no later than

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6 months before the end of the period (or the earliest of such date, the day immediately prior to
the date such compensation has become reasonably ascertainable, and the date specified in the
applicable Deferral Agreement form) provided that the Participant is continuously employed from the
date that the applicable performance criteria are established through the date of the election.
Different Deferral Agreements may be used for different components of compensation payable for a
single service period. Each Deferral Agreement form shall establish for each Participant the
amount and type of compensation (including bonuses and/or salary) that may or shall be deferred
pursuant to the Plan and such determination will be reflected on the relevant Deferral Agreement
form, and may establish maximum or minimum amounts of aggregate deferrals that may be elected for a
Participant. A Participant shall not be entitled to vary any term that is set forth in a Deferral
Agreement form except to the extent that the form of Deferral Agreement itself permits variations.

          (b) Code Section 409A Transition Rules. The Committee or Plan Administrator, in its
sole and absolute discretion, may offer to any Participant the option to make new elections in 2007
and/or 2008 as to time and form (but not medium) of payment for deferrals of compensation that
would not otherwise be payable under the Plan in 2007 or 2008 (as applicable), provided the
elections are consistent with the requirements of Code Section 409A. Any elections made under this
Section shall be administered by the Committee or the Plan Administrator in accordance with
applicable administrative guidance under Code Section 409A.

          (c) Establishment of Deferral Accounts. The Committee or Plan Administrator shall
establish a Deferral Account for each Participant. Each Deferral Account shall be maintained for
the Participant solely as a bookkeeping entry by the Company to evidence unfunded obligations of
the Company. The Participant shall be 100% vested in the Participant’s Deferral Account at all
times, except to the extent otherwise specified in the applicable Deferral Agreement or in any
other agreement between the Company and the Participant. The provisions with respect to vesting in
any such Deferral Agreement or other agreement shall be incorporated in this Plan and given effect
as if fully set forth herein. A Participant’s Deferral Account shall be credited with the amounts
required to be credited to the Participant’s Deferral Account pursuant to the Participant’s initial
Deferral Agreement or pursuant to any subsequent Deferral Agreement entered into by that
Participant and the Company, in each case, less the amount of federal, state or local tax required
by law to be withheld with respect to such amounts, unless such withholding is provided from
another source, and shall be adjusted for Hypothetical Investment results as described herein.

          (d) Hypothetical Investments and Managers. Subject to the provisions of Section 4(g),
amounts credited to a Deferral Account shall be deemed to be invested in one or more hypothetical
investments (“Hypothetical Investments”). Each Participant shall select an investment manager (a
“Manager”) from a list established by the Committee or Plan Administrator, and the Manager will
then select Hypothetical Investments on the Participant’s behalf. A Participant may select a
successor Manager from such list of Managers from time to time. For the unvested portion of a
Participant’s Deferral Account, a Manager may select Hypothetical Investments from a list of investments selected from time to time by the
Committee or Plan Administrator (the “Unvested Account List”), and subject to any limitation on
permissible allocations among groups of Hypothetical Investments that the Committee or Plan

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Administrator may establish. For the vested portion of a Participant’s Deferral Account (which
shall be accounted for in a separate vested subaccount pursuant to Section 4(j)), a Manager may
select Hypothetical Investments from a list of publicly available mutual funds, publicly traded
stock and bonds selected from time to time by the Committee or Plan Administrator (the “Vested
Account List”). The Committee or Plan Administrator shall consider requests from any Participant
to add to the list of Managers and/or to the Vested Account List, and shall satisfy such requests
if they are reasonably acceptable to the Committee or Plan Administrator. The Committee or Plan
Administrator may change or discontinue any Hypothetical Investment or Manager if reasonably
necessary to satisfy business objectives of the Company or its Affiliates; provided that, following
a Change in Control, neither the Committee nor the Plan Administrator may change or modify the
investment options existing immediately prior to such Change in Control in any manner that is
adverse to the Participants. Except in accordance with Section 4(l), no Hypothetical Investments
may be made in any debt or equity issued by FIL or its Affiliates.

          (e) List of Hypothetical Investments and Managers. An initial list of Managers, an
initial Unvested Account List, and an initial Vested Account List shall be established by the
Board, the Committee or the Plan Administrator and each such list shall be provided to each
Participant in connection with the initial Deferral Agreement.

          (f) Investment of Deferral Accounts. As provided in Sections 4(d) and 5(b), each
Deferral Account shall be deemed to be invested in one or more Hypothetical Investments as of the
date of the deferral or credit, as the case may be. The amounts of hypothetical income,
appreciation and depreciation in value of the Hypothetical Investments shall be credited and
debited to, or otherwise reflected in, such Deferral Account from time to time in accordance with
procedures established by the Committee or Plan Administrator. Unless otherwise determined by the
Committee or Plan Administrator, amounts credited to a Deferral Account shall be deemed invested in
Hypothetical Investments as of the date so credited.

          (g) Allocation and Reallocation of Hypothetical Investments. A Manager may allocate
and reallocate amounts credited to a Participant’s Deferral Account to one or more of the
Hypothetical Investments authorized under the Plan with such frequency as determined by the
Committee or the Plan Administrator. Subject to the rules established by the Committee or Plan
Administrator, a Manager may reallocate amounts credited to a Participant’s Deferral Account to
other Hypothetical Investments by filing with the Committee or Plan Administrator a notice, in such
form as may be specified by the Committee or Plan Administrator. No Participant shall have the
right, at any time, to direct a Manager to enter into specific transactions in connection with his
or her Deferral Account; provided that this provision shall not prohibit the Participant
from communicating with the Manager regarding Hypothetical Investments, including communication
regarding preferred Hypothetical Investment objectives. Each Manager shall have the power to
acquire and dispose of such Hypothetical Investments as the Manager determines necessary in
connection with its portfolio. The Committee or Plan Administrator may restrict or prohibit
reallocation of amounts deemed invested in specified Hypothetical Investments or invested by
specified Managers to comply with applicable law or regulation.

          (h) No Actual Investment. Notwithstanding any other provision of this Plan that may
be interpreted to the contrary, the Hypothetical Investments are to be used for

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measurement purposes only. A Participant’s election of any such Hypothetical Investments, the allocation of
such Hypothetical Investments to his or her Deferral Account, the calculation of additional amounts
and the crediting or debiting of such amounts to a Participant’s Deferral Account shall not be
considered or construed in any manner as an actual investment of his or her Deferral Account in any
such Hypothetical Investments. In the event that the Company or the Trustee, in its own
discretion, decides to invest funds in any or all of the Hypothetical Investments, no Participant
shall have any rights in or to such investments themselves. Without limiting the foregoing, a
Participant’s Deferral Account shall at all times be a bookkeeping entry only and shall not
represent any investment made on his or her behalf by the Company or the Trust. The Participant
shall at all times remain an unsecured creditor of the Company.

          (i) Forfeiture of Unvested Portions of Deferral Accounts Upon Separation from Service.
Upon a Participant’s Separation from Service, any unvested portion of the Participant’s Deferral
Account (excluding the portion, if any, that vests as a result of such termination) shall be
forfeited and terminated in accordance with the applicable Deferral Agreement, except as otherwise
determined by the Committee in its sole and absolute discretion.

          (j) Change in Law. If a future change in law would, in the judgment of the Committee
or Plan Administrator, likely accelerate taxation to a Participant of amounts that would be
credited to the Participant’s Deferral Account in the future under the Participant’s Deferral
Agreement, the Company and the Participant will attempt to amend the Plan to satisfy the
requirements of the change in law and, unless and until such an amendment is agreed to, Company
shall cease deferrals under this Deferral Agreement on the effective date of such change in law;
provided however, the Company shall not cease deferrals if such cessation would violate the
provisions of Code Section 409A.

          (k) Separate Maintenance of Vested Subaccounts. A separate vested subaccount shall be
established and maintained for each Participant who either (a) elects to defer amounts of salary
and/or cash bonus payments pursuant to a Deferral Agreement, or (b) becomes vested in a portion of
the unvested balance of the Participant’s Deferral Account (the “Unvested Balance”). A
Participant’s vested subaccount shall constitute part of the Participant’s Deferral Account.
Whenever a portion of a Participant’s Unvested Balance becomes vested, the portion that becomes
vested shall be transferred to the Participant’s separate vested subaccount as specified in the
Deferral Agreement or other agreement entered into between the Participant and the Company. If a
Participant elects to defer amounts of salary and cash bonus pursuant to a Deferral Agreement, the
deferral salary and cash bonus shall be accounted for in the Participant’s separate vested
subaccount. The amounts of hypothetical income, appreciation and depreciation in value of the
Hypothetical Investments of amounts in a vested subaccount shall be credited and debited to, or
otherwise reflected in, such vested subaccount from time to time in accordance with procedures
established by the Committee or Plan Administrator. Unless otherwise determined by the Committee
or Plan Administrator, amounts credited to a vested subaccount shall be deemed invested in
Hypothetical Investments as of the date so credited.

          (l) Share Award Deferrals. Pursuant to an applicable Award Agreement, compensation in
the form of a Stock Unit may be deferred under this Plan (any such deferral, a “Share Award Deferral”). If a Share Award Deferral is made for a Participant, a separate
subaccount of the Participant’s Deferral Account shall be established and maintained in order to

-7-

 

account for the Participant’s rights under the Share Award Deferral, and any hypothetical earnings
and losses thereon shall be recorded in such separate subaccount. Any such subaccount shall be
unvested to the extent attributable to an unvested Stock Unit, and from the time that the Stock
Unit vests shall be deemed to be invested solely in shares of FIL stock. Notwithstanding any other
provision of the Plan to the contrary, a Participant shall not be entitled to reallocate any
portion of a subaccount that is deemed invested in a Stock Unit or FIL shares to another
Hypothetical Investment.

     5. Establishment of Trust.

          (a) The Trust Agreement. The Company has entered into a Trust Agreement for the Plan,
providing for the establishment of a trust to be held and administered by a trustee (the “Trustee”)
designated in the Trust Agreement (the “Trust”). The Trustee shall be the agent for purposes of
such duties delegated to the Trustee by the Committee or Plan Administrator as set forth in the
Trust Agreement. The Trust shall be irrevocable.

          (b) Funding the Trust. Except as otherwise provided in Section 5(d) with respect to
Share Award Deferrals, on the relevant Deferral Day, the Company shall deposit into the Trust cash
or other assets, as specified in the applicable Deferral Agreement, equal to the aggregate amount
required to be credited to the Participant’s Deferral Account for that Deferral Day, less
applicable taxes required to be withheld, if any. The assets of the Trust shall remain subject to
the claims of the general creditors of the Company in the event of an insolvency of the Company.
Assets of the Trust shall at all times be located within the United States.

          (c) Taxes and Expenses of the Trust. The Committee and the Plan Administrator shall
make all investment decisions for the Trust, and no Participant shall be entitled to direct any
investments of the Trust. All taxes on any gains and losses from the investment of the assets of
the Trust shall be recognized by the Company and the taxes thereon shall be paid by the Company and
shall not be recovered from the Deferral Accounts or the Trust. The third-party administrative
expenses of the Plan and the Trust, including expenses charged by the Trustee to establish the
Trust and the Trustee’s annual fee per Deferral Account, shall be paid by the Company, and shall
neither be payable by Trustee from the Trust nor reduce any Deferral Accounts; provided that any
Managers’ fees or other expenses incurred with respect to particular Hypothetical Investment or any
asset of the Trust which corresponds to a particular Hypothetical Investment shall be charged to
the Deferral Account that is deemed invested in such Hypothetical Investment. No part of the
Company’s internal expenses to administer the Plan, including overhead expenses, shall be charged
to the Trust or the Deferral Accounts.

          (d) Trust for Share Award Deferrals. In connection with a Share Award Deferral, the
Company shall be required to deposit shares of FIL into trust only if required to do so under the
terms of the applicable Award Agreement, and in no event earlier than the time that the related
Stock Unit vests. If shares of FIL are to be transferred into trust under a Share Award Deferral,
the shares may be transferred either into the Trust (as may be amended to provide for such
transfer) or into another trust established for the benefit of the Participants. To the extent
practicable, the terms of any trust used or established for a Share Award Deferral shall resemble
the terms of the Trust Agreement as of the date hereof; provided that any FIL shares that FIL
contributes to the trust shall be subject to the claims of the general creditors of both the Company

-8-

 

and FIL and shall revert to FIL if they are not payable to a Participant upon termination
of the trust or (if earlier) at the time of the forfeiture of the corresponding deemed investment
in accordance with Section 4(i).

     6. Settlement of Deferral Accounts.

          (a) Payout Elections. The Company shall pay or direct the Trustee to pay the net
amount credited to a Deferral Account as elected by the Participant in the Participant’s Deferral
Agreement in accordance with the provisions of this Plan or as provided in an Award Agreement. A
Participant shall be required to select one of the payout alternatives set forth in the form of
Deferral Agreement provided to the Participant by the Plan Administrator. Except for payouts due
to the death, Disability, Unforeseeable Emergency or Separation from Service of the Participant, no
payout of amounts credited to a Participant’s Deferral Account shall occur prior to the first
anniversary of the Deferral Agreement. The Committee or Plan administer may, in its sole
discretion, allow a Participant to redefer the payout of his Deferral Account one or more times;
provided, that (i) such redeferral may not take effect until at least 12 months after the
date on which such election is made; (ii) in the case of an election related to any payment other
than a payment that would be made upon the Participant’s death, Disability, or the occurrence of an
Unforeseeable Emergency, the first payment with respect to which such election is made must be
deferred for a period of not less than 5 years from the date such payment would otherwise have been
made; and (iii) any election that would affect a scheduled payout may be made not less than 12
months prior to the date of the first scheduled payout date. The preceding restrictions on
redeferrals shall be construed and administered in accordance with the requirements of Code Section
409A(a)(4)(C) and Treasury Regulations thereunder. No Participant shall be entitled to accelerate
the time or schedule of any payment under the Plan, except where an acceleration would not result
in the imposition of additional tax under Code Section 409A.

          (b) Payment in Cash or Securities. The Company shall settle a Participant’s Deferral
Account, and discharge all of its obligations to pay deferred compensation under the Plan with
respect to such Deferral Account, by payment of cash in an amount equal to or, at the option of the
Committee or Plan Administrator, in marketable securities selected by the Committee or Plan
Administrator with a Fair Market Value equal to the net amount credited to the applicable Deferral
Account; provided that a Hypothetical Investment of a subaccount that is allocated to shares of
stock of FIL in accordance with Section 4(l) shall be settled only in shares of stock of FIL. Any
such distributions to a Participant shall reduce the Company’s obligations under the Plan to such
Participant. The Company’s obligation under the Plan may be satisfied by distributions from the
Trust.

          (c) Timing of Payments.

               (i) Payments in settlement of a Participant’s Deferral Account may be distributed no earlier
than the Participant’s Separation from Service, Disability, death, a specified time (or pursuant to
a fixed schedule) specified in the applicable Deferral Agreement, Change in Control or the
occurrence of an Unforeseeable Emergency. In the case of a Participant who is a
Specified Employee, a payment on account of Separation from Service may not be made before the
date which is 6 months after the date of Separation from Service (or, if earlier, the date of the

-9-

 

Participant’s death). In such event, the single lump sum payment or any installment payments that
otherwise would have been payable within such six (6) month period will be paid as soon as
administratively practicable after such six (6) month period. Any payment election set forth in a
Participant’s Deferral Agreement shall be construed as prohibiting distributions that would
otherwise be payable within the six (6) month period following the Participant’s Separation from
Service to the extent, and only to the extent, required under the preceding two sentences.

               (ii) Payments in settlement of a Deferral Account shall be made as soon as practicable after
the date or dates (including upon the occurrence of specified events), and in such number of
installments, as directed by the Participant in the Participant’s Deferral Agreement, unless
otherwise provided in this Section 6. All amounts needed for a payment shall be deemed withdrawn
from the Hypothetical Investments as close in time as is practicable to the requested payment date.
If a Participant has elected to receive installment payments, the amount of the distribution
payable is based upon the value of the Deferral Account at the time of the installment payment date
and shall act to reduce Hypothetical Investments in the following order: (A) cash and money market
accounts, and (B) each other Hypothetical Investment on a pro rata basis, based on the value of the
Participant’s Deferral Account. For purposes of a redeferral election as permitted under this
Section 6, a right to receive installment payments shall be treated as a right to receive a series
of separate payments. If a Participant has elected to receive partial payments of the amount in
his or her Deferral Account, unpaid balances shall continue to be deemed to be invested in the
Hypothetical Investments that such Participant has designated pursuant to Section 4(d) or 4(f).

               (iii) In the event of a Participant’s death prior to the payment of all net amounts credited
to his or her Deferral Account, such amounts shall be paid to the Participant’s designated
Beneficiary in a single lump sum as soon as practicable after the Participant’s death. If a
Participant fails to designate a Beneficiary or if all designated Beneficiaries predecease the
Participant or die prior to complete distribution of the Participant’s benefits, the Participant’s
designated Beneficiary shall be the executor or personal representative of the Participant’s
estate, if a probate proceeding is open at the time for the distribution(s), and otherwise shall be
the person(s) who would be entitled to the distribution(s) under the Participant’s last will and
/or revocable trust (if such will distributes the residuary estate to such trust) and otherwise to
the person(s) who would inherit the Participant’s property under the law of the Participant’s last
domicile. If the Committee or Plan Administrator has any doubt as to the proper Beneficiary to
receive payments pursuant to this Plan, the Committee or Plan Administrator shall have the right,
exercisable in its discretion, to withhold such payments until this matter is resolved to the
Committee’s or Plan Administrator’s satisfaction. The payment of benefits under the Plan to a
Beneficiary shall fully and completely discharge the Company from all further obligations under
this Plan with respect to the Participant, and such Participant’s interest in the Plan shall
terminate upon such full payment of benefits.

               (iv) Irrespective of any elections made by a Participant, if the Committee or Plan
Administrator determines that a Participant has become Disabled, the net vested amount credited to
a Participant’s Deferral Account shall be paid out in a single lump sum to the Participant.

-10-

 

          (d) Unforeseeable Emergency. Other provisions of the Plan notwithstanding, if the
Committee or Plan Administrator determines that the Participant has an Unforeseeable Emergency, the
Committee or Plan Administrator shall direct the immediate lump sum payment to the Participant of
vested amounts that the Committee or Plan Administrator determines to be necessary to satisfy such
Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of
the distribution, after taking into account the extent to which such Unforeseeable Emergency is or
may be relieved through reimbursement or compensation by insurance, any additional compensation
that is available due to the cancellation of a deferral election upon a payment due to an
unforeseeable emergency, or otherwise or by liquidation of the Participant’s assets (to the extent
the liquidation of such assets would not itself cause severe financial hardship). The preceding
sentence shall be construed and administered in accordance with the requirements of Code Section
409A(a)(2)(B)(ii) and Treasury Regulations thereunder. If the Committee determines that a
Participant has suffered an Unforeseeable Emergency, the Plan Administrator shall authorize the
cessation of deferrals by such Participant under the Plan.

          (e) Distribution upon Income Inclusion under Code Section 409A or to Satify other Tax
Obligations. If, for any reason, it has been determined that the Plan fails to meet the
requirements of Code Section 409A and the regulations promulgated thereunder, the Committee or the
Plan Administrator shall distribute to the Participant the portion of the Participant’s Deferral
Account that is required to be included in income as a result of the failure of the Plan to comply
with the requirements of Code Section 409A and Treasury Regulations promulgated thereunder. If,
for any reason, it has been determined that state. local or foreign tax obligations (including
employment taxes and income tax at source on wages) arise from a Participant’s participation in the
Plan with respect to an amount deferred under the Plan before the amount is paid or made available
to the participant, the Committee or the Plan Administrator shall distribute an amount to the
Participant (either in the form of withholding pursuant to provisions of applicable law or by
distributions directly to the Participant) to reflect such tax obligation, provided the amount so
distributed may not exceed the amount of such taxes due as a result of participation in the Plan.

          (f) Effect on Deferral Account. A Participant’s Deferral Account shall be debited to
the extent of any distributions to the Participant pursuant to this Section 6.

     7. Amendment and Termination.

          (a) Amendment. The Committee, Plan Administrator or the Board may, with prospective
or retroactive effect, amend or alter the Plan (i) if the Internal Revenue Service determines that
any amounts deferred under the Plan are includible in the Participant’s gross income prior to being
paid out to the Participant, (ii) any time, if determined to be necessary, appropriate or advisable
in response to administrative guidance issued under Code Section 409A or to comply with the
provisions of Code Section 409A, or (iii) if no Participant is materially adversely affected by
such action with respect to amounts required to be credited to the Participant’s Deferral Account
under any previously executed Deferral Agreement; provided that, upon an event
described in clause (i), the Company may accelerate distributions under this Plan but may not
otherwise alter any Participant’s rights under this Plan; provided further that, following a Change
in Control, the Plan will not be subject to amendment, alteration, suspension, discontinuation or
termination without the prior written consent of each Participant who would

-11-

 

be materially adversely affected by such action; and provided further that, in each case, the
Company may accelerate distributions under this Plan only to the extent (if any) that doing so will
not result in the imposition of additional tax under Code Section 409A.

          (b) Termination. Notwithstanding any other provision to the contrary and except as
may otherwise be provided by the Committee or Plan Administrator, the Plan shall terminate as soon
as possible following the payment of all amounts in respect of all Deferral Accounts.

     8. General Provisions.

          (a) Limits on Transfer of Awards. Other than by will, the laws of descent and
distribution, or by appointing a Beneficiary, no right, title or interest of any kind in the Plan
shall be transferable or assignable by a Participant (or the Participant’s Beneficiary) or be
subject to alienation, anticipation, encumbrance, garnishment, attachment, levy, execution or other
legal or equitable process, nor subject to the debts, contracts, liabilities or engagements, or
torts of any Participant or the Participant’s Beneficiary. Any attempt to alienate, sell,
transfer, assign, pledge, garnish, attach or take any other action subject to legal or equitable
process or encumber or dispose of any interest in the Plan shall be void.

          (b) Waiver, Receipt and Release.

               (i) As between the Participant and the Company, a Participant and the Participant’s
Beneficiary shall assume all risk (other than gross negligence of the Company or the Committee or
Plan Administrator, or breach by the Company of the terms of this Plan) in connection with the
Plan, Trust design, implementation or administration, Hypothetical Investment decisions made by the
Participant’s Manager and the resulting value of the Participant’s Deferral Account, the selection
and actions of the Trustee or any other third party providing services to the Company or the Trust
in connection with the Plan or Trust (including their administrative and investment expenses),
including any income taxes of the Participant or Participant’s Beneficiary relating to or arising
out of his or her participation in the Plan, and neither the Company nor the Committee or Plan
Administrator shall be liable or responsible therefor other than as provided in Section 5(c);
provided, however, that the Company shall indemnify each Participant for any additional 20% tax
imposed under Code Section 409A and any additional interest resulting from an inclusion in income
under Code Section 409A as a result of any actions of the Company in administering or carrying out
the purposes the Plan.

               (ii) As a condition of being a Participant in the Plan, each Participant must sign a waiver
(which may be a part of the Deferral Agreement) releasing the Company and its Affiliates, the
Committee, the Plan Administrator, officers of the Company or its Affiliates (the “Officers”) and
the Board from any claims and liabilities regarding the matters to which the Participant has
assumed the risk as set forth in this Section. Payments (in any form) to any Participant or
Beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full
satisfaction of all claims for compensation deferred and relating to the Deferral Account to which
the payments relate against the Company or any Affiliate or the Committee or Plan Administrator,
and the Committee or Plan Administrator may require such Participant or

-12-

 

Beneficiary, as a condition to such payments, to execute a waiver, receipt and release to such
effect.

               (iii) As a condition of being a Participant in the Plan, each Participant must sign a waiver
releasing the Trustee and each of its Affiliates (each, a “Released Party”) against any and all
loss, claims, liability and expenses imposed on or incurred by any Released Party as a result of
any acts taken or any failure to act by the Trustee, where such act or failure to act is in
accordance with the directions from the Committee or Plan Administrator or any designee of the
Committee or Plan Administrator.

               (iv) Subject only to the Company’s indemnification of Participants provided in Section
8(b)(i), each Participant agrees to pay any taxes, penalties and interest such Participant or
Beneficiary may incur in connection with his or her participation in this Plan, and further agrees
to indemnify the Company and its Affiliates, the Committee, the Plan Administrator, Officers, the
Board and the Company’s agents for such taxes, penalties and interest the Participant or
Participant’s Beneficiary incurs and fails to pay and for which the Company is made liable by the
appropriate tax authority.

          (c) Unfunded Status of Awards, Creation of Trusts. The Plan is intended to constitute
an unfunded plan for deferred compensation and each Participant shall rely solely on the unsecured
promise of the Company for payment hereunder. With respect to any payment not yet made to a
Participant under the Plan, nothing contained in the Plan shall give a Participant any rights that
are greater than those of a general unsecured creditor of the Company.

          (d) Participant Rights. No provision of the Plan or transaction hereunder shall
confer upon any Participant any right or impose upon any Participant any obligation to be employed
by the Company or an Affiliate, or to interfere in any way with the right of the Company or an
Affiliate to increase or decrease the amount of any compensation payable to such Participant.
Subject to the limitations set forth in Section 8(c) hereof, the Plan shall inure to the benefit
of, and be binding upon, the parties hereto and their successors and assigns.

          (e) Tax Withholding. The Company shall have the right to deduct from amounts
otherwise credited to or paid from a Deferral Account any sums that federal, state, local or
foreign tax law requires to be withheld.

          (f) Governing Law. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of California, without giving effect to principles of conflicts of laws to the extent not
pre-empted by federal law.

          (g) Limitation. A Participant and the Participant’s Beneficiary shall assume all risk
in connection with (i) the performance of the Managers, (ii) the performance of the Hypothetical
Investments, and (iii) the tax treatment of amounts deferred under or paid pursuant to the Plan,
and the Company, the Committee, the Plan Administrator, and the Board shall not be liable or
responsible therefor.

          (h) Construction. The captions and numbers preceding the sections of the Plan are
included solely as a matter of convenience of reference and are not to be taken as

-13-

 

limiting or extending the meaning of any of the terms and provisions of the Plan. Whenever
appropriate, words used in the singular shall include the plural or the plural may be read as the
singular.

          (i) Severability. In the event that any provision of the Plan shall be declared
illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining
provisions of the Plan but shall be fully severable, and the Plan shall be construed and enforced
as if said illegal or invalid provision had never been inserted herein.

          (j) Status. The establishment and maintenance of, or allocations and credits to, the
Deferral Account of any Participant shall not vest in any Participant any right, title or interest
in or to any Plan or Company assets or benefits except at the time or times and upon the terms and
conditions and to the extent expressly set forth in the Plan and in accordance with the terms of
any Trust.

          (k) Spouse’s Interest. The interest in the benefits hereunder of a Participant’s
spouse who has predeceased the Participant shall automatically pass to the Participant and shall
not be transferable by such spouse in any manner, including but not limited to such spouse’s will,
nor shall such interest pass under the laws of intestate succession.

          (l) Successors. The provisions of the Plan shall bind the Company and its successors.

     9. Claims Procedures.

          (a) Presentation of Claim. If any person does not believe that he or she has received
Plan benefits to which the person is entitled or believes that fiduciaries of the Plan have
breached their duties or that the Plan is not being operated properly or that his or her legal
rights have been or are being violated with respect to the Plan, such person (a “Claimant”) must
file a written claim with the Committee or Plan Administrator under the procedures set forth in
this Article. The procedures in this Article shall apply to all claims that any person has with
respect to the Plan, including claims against fiduciaries and former fiduciaries, unless the
Committee or Plan Administrator determines, in its sole discretion, that it does not have the power
to grant, in substance, all relief reasonably being sought by the Claimant. If such a claim
relates to the contents of a notice received by the Claimant, the claim must be made within sixty
(60) days after such notice was received by the Claimant. All other claims must be made within one
hundred eighty (180) days of the date on which the event that caused the claim to arise occurred.
The claim must state with particularity the benefit or other determination desired by the Claimant.
The claim must be accompanied with sufficient supporting documentation for the benefit or other
determination requested by the Claimant.

          (b) Notification of Decision. The Committee or Plan Administrator shall consider a
Claimant’s claim and shall notify the Claimant in writing within twenty-five (25) days of receipt
of the claim that either:

               (i) the Claimant’s requested determination has been made, and that the claim for benefits has
been allowed in full (or if the claim was not filed for benefits, those steps the Company has taken
or will take in connection with the determination); or

-14-

 

               (ii) the Committee or Plan Administrator has reached a conclusion contrary, in whole or in
part, to the Claimant’s requested determination, and such notice must set forth in a manner
calculated to be understood by the Claimant:

                    (A) specific reason or reasons the claim was denied;

                    (B) specific reference(s) to the pertinent Plan provisions upon which
the decision was based;

                    (C) a description of any additional material or information necessary
for the Claimant to perfect the claim, and an explanation of why such
material or information is necessary; and

                    (D) an explanation of the claim review procedure set forth below.

          (c) Review of a Denied Claim. Within sixty (60) days (180 days for a Disability
claim) after receiving a notice from the Committee or Plan Administrator that a claim has been
denied in whole or in part, but not thereafter, a Claimant (or the Claimant’s duly authorized
representative) may file with the Committee or Plan Administrator a written request for a review of
the denial of the claim. Thereafter, but not later than thirty (30) days after the request for
review is filed, the Claimant (or the Claimant’s duly authorized representative):

               (i) may upon reasonable request and free of charge, have reasonable access to, and copies of,
all pertinent documents, records and other information in the Company’s possession; and

               (ii) will be informed of such other matters as the Committee or Plan Administrator deems
relevant.

          The Committee or Plan Administrator shall conduct a full and fair review of the claim and the
initial adverse benefit determination and notify the Claimant in writing of its decision within
sixty (60) days (45 days for a Disability claim) after receipt of Claimant’s request for a review.
In the case of an adverse benefit determination, the notification shall set forth (1) the specific
reason or reasons for the adverse determination, (2) reference to the specific Plan provisions on
which the determination is based, (3) a statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the Claimant’s claim for benefits, and (4) a statement describing the
voluntary arbitration procedures offered under the Plan and the right to bring an action under
Section 502(a) of ERISA.

          (d) Elective Arbitration. If a Claimant’s claim described in Section 9(a) is denied
pursuant to Sections 9(b) and 9(c) (an “Arbitrable Dispute”), the Claimant may, in lieu of the
Claimant’s right to bring a civil action under Section 502(a) of ERISA, and as the Claimant’s only
further recourse, submit the claim to final and binding arbitration in the city of San Jose, State
of California, before an experienced employment arbitrator selected in accordance with the
Employment Dispute Resolution Rules of the American Arbitration Association. Except as otherwise
provided in this Section 9(d) or Section 9(f), each party shall pay the fees of their

-15-

 

respective attorneys, the expenses of their witnesses and any other expenses connected with
the arbitration, but all other costs of the arbitration, including the fees of the arbitrator,
costs of any record or transcript of the arbitration, administrative fees and other fees and costs
shall be paid in equal shares by each party (or, if applicable, each group of parties) to the
arbitration. In any Arbitrable Dispute in which the Claimant prevails, the Company shall reimburse
the Claimant’s reasonable attorneys fees and related expenses. Arbitration in this manner shall be
the exclusive remedy for any Arbitrable Dispute for which an arbitration is elected. The
arbitrator’s decision or award shall be fully enforceable and subject to an entry of judgment by a
court of competent jurisdiction. Should any party attempt to resolve an Arbitrable Dispute for
which an arbitration is elected by any method other than arbitration pursuant to this Section, the
responding party shall be entitled to recover from the initiating party all damages, expenses and
attorneys fees incurred as a result.

          (e) Legal Action. Prior to a Change in Control, except to enforce an arbitrator’s
award, no actions may be brought by a Claimant in any court with respect to an Arbitrable Dispute
that is arbitrated.

          (f) Following a Change in Control. Upon the occurrence of a Change in Control, an
independent party selected jointly by the Participants in the Plan prior to the Change in the
Control and the Committee or the Plan Administrator or other appropriate person shall assume all
duties and responsibilities of the Committee or Plan Administrator under this Article 9 and actions
may be brought by a Claimant in any appropriate court with respect to an Arbitrable Dispute that is
arbitrated. After a Change in Control, if any person or entity has failed to comply (or is
threatening not to comply) with any of its obligations under the Plan, or takes or threatens to
take any action to deny, diminish or to recover from any Participant the benefits intended to be
provided thereunder, the Company shall reimburse the Participant for reasonable attorneys fees and
related costs incurred in the pursuance or defense of the Participant’s rights. If the Participant
does not prevail, attorneys fees shall also be payable under the preceding sentence to the extent
the Participant had reasonable justification for pursuing its claim, but only to the extent that
the scope of such representation was reasonable.

     10. Effective Date.

          The Plan (as amended and restated herein) shall be effective as of December 19, 2007.

Flextronics International USA, Inc.

	 	 	 	 	 
	By:

	 	/s/ Paul Humphries 

	 	 
	 

	 	   Paul Humphries	 	 
	 

	 	   Executive Vice President, Worldwide HR and Management Systems	 	 

-16-

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