Document:

Exhibit

LIVENT NONQUALIFIED 
SAVINGS PLAN

January 1, 2019

IMPORTANT NOTE

This document has not been approved by the Department of Labor, Internal Revenue Service or any other governmental entity.  An adopting Employer must determine whether the Plan is subject to the Federal securities laws and the securities laws of the various states.  An adopting Employer may not rely on this document to ensure any particular tax consequences or to ensure that the Plan is “unfunded and maintained primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees” under Title I of the Employee Retirement Income Security Act of 1974, as amended, with respect to the Employer’s particular situation.  Fidelity Employer Services Company, its affiliates and employees cannot provide you with legal advice in connection with the execution of this document.  This document should be reviewed by the Employer’s attorney prior to execution.

TABLE OF CONTENTS

PREAMBLE
ARTICLE 1 – GENERAL
		
	1.1
	Plan

		
	1.2
	Effective Dates

		
	1.3
	Amounts Not Subject to Code Section 409A

ARTICLE 2 – DEFINITIONS
		
	2.1
	Account

		
	2.2
	Administrator

		
	2.3
	Adoption Agreement

		
	2.4
	Beneficiary

		
	2.5
	Board or Board of Directors

		
	2.6
	Bonus

		
	2.7
	Change in Control

		
	2.8
	Code

		
	2.9
	Compensation

		
	2.10
	Director

		
	2.11
	Disability

		
	2.12
	Eligible Employee

		
	2.13
	Employer

		
	2.14
	ERISA

		
	2.15
	Identification Date

		
	2.16
	Key Employee

		
	2.17
	Participant

		
	2.18
	Plan

		
	2.19
	Plan Sponsor

		
	2.20
	Plan Year

		
	2.21
	Related Employer

		
	2.22
	Retirement

		
	2.23
	Separation from Service

		
	2.24
	Unforeseeable Emergency

		
	2.25
	Valuation Date

		
	2.26
	Years of Service

ARTICLE 3 – PARTICIPATION
		
	3.1
	Participation

		
	3.2
	Termination of Participation

ARTICLE 4 – PARTICIPANT ELECTIONS
		
	4.1
	Deferral Agreement

		
	4.2
	Amount of Deferral

		
	4.3
	Timing of Election to Defer

		
	4.4
	Election of Payment Schedule and Form of Payment

ARTICLE 5 – EMPLOYER CONTRIBUTIONS
		
	5.1
	Matching Contributions

		
	5.2
	Other Contributions

ARTICLE 6 – ACCOUNTS AND CREDITS
		
	6.1
	Establishment of Account

		
	6.2
	Credits to Account

ARTICLE 7 – INVESTMENT OF CONTRIBUTIONS
		
	7.1
	Investment Options

		
	7.2
	Adjustment of Accounts

ARTICLE 8 – RIGHT TO BENEFITS
		
	8.1
	Vesting

		
	8.2
	Death

		
	8.3
	Disability

ARTICLE 9 – DISTRIBUTION OF BENEFITS
		
	9.1
	Amount of Benefits 

		
	9.2
	Method and Timing of Distributions

		
	9.3
	Unforeseeable Emergency

		
	9.4
	Payment Election Overrides

		
	9.5
	Cashouts of Amounts Not Exceeding Stated Limit

		
	9.6
	Required Delay in Payment to Key Employees

		
	9.7
	Change in Control

		
	9.8
	Permissible Delays in Payment

		
	9.9
	Permitted Acceleration of Payment

ARTICLE 10 – AMENDMENT AND TERMINATION
		
	10.1
	Amendment by Plan Sponsor

		
	10.2
	Plan Termination Following Change in Control or Corporate Dissolution 

		
	10.3
	Other Plan Terminations

ARTICLE 11 – THE TRUST
		
	11.1
	Establishment of Trust

		
	11.2
	Rabbi Trust

		
	11.3
	Investment of Trust Funds

ARTICLE 12 – PLAN ADMINISTRATION
		
	12.1
	Powers and Responsibilities of the Administrator

		
	12.2
	Claims and Review Procedures

		
	12.3
	Plan Administrative Costs

ARTICLE 13 – MISCELLANEOUS
		
	13.1
	Unsecured General Creditor of the Employer

		
	13.2
	Employer’s Liability

		
	13.3
	Limitation of Rights

		
	13.4
	Anti-Assignment

		
	13.5
	Facility of Payment

		
	13.6
	Notices

		
	13.7
	Tax Withholding

		
	13.8
	Indemnification

		
	13.9
	Successors

		
	13.10
	Disclaimer

		
	13.11
	Governing Law

PREAMBLE 

The Plan is intended to be a “plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended, or an “excess benefit plan” within the meaning of Section 3(36) of the Employee Retirement Income Security Act of 1974, as amended, or a combination of both.  The Plan is further intended to conform with the requirements of Internal Revenue Code Section 409A and the final regulations issued thereunder and shall be interpreted, implemented and administered in a manner consistent therewith.  

ARTICLE 1 – GENERAL

		
	1.1
	Plan.  The Plan will be referred to by the name specified in the Adoption Agreement.

		
	1.2
	Effective Dates.

		
	(a)
	Original Effective Date.  The Original Effective Date is the date as of which the Plan was initially adopted.

		
	(b)
	Amendment Effective Date.  The Amendment Effective Date is the date specified in the Adoption Agreement as of which the Plan is amended and restated.  Except to the extent otherwise provided herein or in the Adoption Agreement, the Plan shall apply to amounts deferred and benefit payments made on or after the Amendment Effective Date.

		
	(c)
	Special Effective Date.  A Special Effective Date may apply to any given provision if so specified in Appendix A of the Adoption Agreement.  A Special Effective Date will control over the Original Effective Date or Amendment Effective Date, whichever is applicable, with respect to such provision of the Plan. 

		
	1.3
	Amounts Not Subject to Code Section 409A

Except as otherwise indicated by the Plan Sponsor in Section 1.01 of the Adoption Agreement, amounts deferred before January 1, 2005 that are earned and vested on December 31, 2004 will be separately accounted for and administered in accordance with the terms of the Plan as in effect on December 31, 2004.

ARTICLE 2 – DEFINITIONS

Pronouns used in the Plan are in the masculine gender but include the feminine gender unless the context clearly indicates otherwise.  Wherever used herein, the following terms have the meanings set forth below, unless a different meaning is clearly required by the context:

		
	2.1
	“Account” means an account established for the purpose of recording amounts credited on behalf of a Participant and any income, expenses, gains, losses or distributions included thereon.  The Account shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant or to the Participant’s Beneficiary pursuant to the Plan.   

		
	2.2
	“Administrator” means the person or persons designated by the Plan Sponsor in Section 1.05 of the Adoption Agreement to be responsible for the administration of the Plan.  If no Administrator is designated in the Adoption Agreement, the Administrator is the Plan Sponsor. 

		
	2.3
	“Adoption Agreement” means the agreement adopted by the Plan Sponsor that establishes the Plan. 

		
	2.4
	“Beneficiary” means the persons, trusts, estates or other entities entitled under Section 8.2 to receive benefits under the Plan upon the death of a Participant. 

		
	2.5
	“Board” or “Board of Directors” means the Board of Directors of the Plan Sponsor. 

		
	2.6
	“Bonus” means an amount of incentive remuneration payable by the Employer to a Participant. 

		
	2.7
	“Change in Control” means the occurrence of an event involving the Plan Sponsor that is described in Section 9.7. 

		
	2.8
	“Code” means the Internal Revenue Code of 1986, as amended. 

		
	2.9
	“Compensation” has the meaning specified in Section 3.01 of the Adoption Agreement. 

		
	2.10
	“Director” means a non-employee member of the Board who has been designated by the Employer as eligible to participate in the Plan. 

		
	2.11
	“Disability”  means a determination by the Administrator that the Participant is either (a) 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 (b) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Employer.  A Participant will be considered to have incurred a Disability if he is determined to be totally disabled by the Social Security Administration or the Railroad Retirement Board.

		
	2.12
	“Eligible Employee” means an employee of the Employer who satisfies the requirements in Section 2.01 of the Adoption Agreement. 

		
	2.13
	“Employer” means the Plan Sponsor and any other entity which is authorized by the Plan Sponsor to participate in and, in fact, does adopt the Plan.

		
	2.14
	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

		
	2.15
	“Identification Date” means the date as of which Key Employees are determined which is specified in Section 1.06 of the Adoption Agreement.

		
	2.16
	“Key Employee” means an employee who satisfies the conditions set forth in Section 9.6.

		
	2.17
	 “Participant” means an Eligible Employee or Director who commences participation in the Plan in accordance with Article 3.

		
	2.18
	“Plan” means the unfunded plan of deferred compensation set forth herein, including the Adoption Agreement and any trust agreement, as adopted by the Plan Sponsor and as amended from time to time. 

		
	2.19
	“Plan Sponsor” means the entity identified in Section 1.03 of the Adoption Agreement or any successor by merger, consolidation or otherwise.

		
	2.20
	“Plan Year” means the period identified in Section 1.02 of the Adoption Agreement. 

		
	2.21
	“Related Employer” means the Employer and (a) any corporation that is a member of a controlled group of corporations as defined in Code Section 414(b) that includes the Employer and (b) any trade or business that is under common control as defined in Code Section 414(c) that includes the Employer.

		
	2.22
	“Retirement” has the meaning specified in 6.01(f) of the Adoption Agreement.

		
	2.23
	“Separation from Service” means the date that the Participant dies, retires or otherwise has a termination of employment with respect to all entities comprising the Related Employer.  A Separation from Service does not occur if the Participant is on military leave, sick leave or other bona fide leave of absence if the period of leave does not exceed six months or such longer period during which the Participant’s right to re-employment is provided by statute or contract.  If the period of leave exceeds six months and the Participant’s right to re-employment is not provided either by statute or contract, a Separation from Service will be deemed to have occurred on the first day following the six-month period.  If the period of leave is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where the impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29 month period of absence may be substituted for the six month period.

Whether a termination of employment has occurred is based on whether the facts and circumstances indicate that the Related Employer and the Participant reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Participant would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than 20 percent of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36 month period (or the full period of services to the Related Employer if the employee has been providing services to the Related Employer for less than 36 months).  
An independent contractor is considered to have experienced a Separation from Service with the Related Employer upon the expiration of the contract (or, in the case of more than one contract, all contracts) under which services are performed for the Related Employer if the expiration constitutes a good-faith and complete termination of the contractual relationship. 
If a Participant provides services as both an employee and an independent contractor of the Related Employer, the Participant must separate from service both as an employee and as an independent contractor to be treated as having incurred a Separation from Service.  If a Participant ceases providing services as an independent contractor and begins providing services as an employee, or ceases providing services as an employee and begins providing services as an independent contractor, the Participant will not be considered to have experienced a Separation from Service until the Participant has ceased providing services in both capacities. 
If a Participant provides services both as an employee and as a member of the board of directors of a corporate Related Employer (or an analogous position with respect to a noncorporate Related Employer), the services provided as a director are not taken into account in determining whether the Participant has incurred a Separation from Service as an employee for purposes of a nonqualified deferred compensation plan in which the Participant participates as an employee that is not aggregated under Code Section 409A with any plan in which the Participant participates as a director.
If a Participant provides services both as an employee and as a member of the board of directors of a corporate related Employer (or an analogous position with respect to a noncorporate Related Employer), the services provided as an employee are not taken into account in determining whether the Participant has experienced a Separation from Service as a director for purposes of a nonqualified deferred compensation plan in which the Participant participates as a director that is not aggregated under Code Section 409A with any plan in which the Participant participates as an employee.  
All determinations of whether a Separation from Service has occurred will be made in a manner consistent with Code Section 409A and the final regulations thereunder.  
		
	2.24
	 “Unforeseeable Emergency” means a severe financial hardship of the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, the Participant’s Beneficiary, or the Participant’s dependent (as defined in Code Section 152, without regard to Code section 152(b)(1), (b)(2) and (d)(1)(B); 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.  

		
	2.25
	“Valuation Date” means each business day of the Plan Year that the New York Stock Exchange is open.

		
	2.26
	“Years of Service” means each one year period for which the Participant receives service credit in accordance with the provisions of Section 7.01(d) of the Adoption Agreement.

ARTICLE 3 – PARTICIPATION

		
	3.1
	Participation.  The Participants in the Plan shall be those Directors and employees of the Employer who satisfy the requirements of Section 2.01 of the Adoption Agreement.

		
	3.2
	Termination of Participation.  The Administrator may terminate a Participant’s participation in the Plan in a manner consistent with Code Section 409A.  If the Employer terminates a Participant’s participation before the Participant experiences a Separation from Service the Participant’s vested Accounts shall be paid in accordance with the provisions of Article 9.

ARTICLE 4 – PARTICIPANT ELECTIONS

		
	4.1
	Deferral Agreement.  If permitted by the Plan Sponsor in accordance with Section 4.01 of the Adoption Agreement, each Eligible Employee and Director may elect to defer his Compensation within the meaning of Section 3.01 of the Adoption Agreement by executing in writing or electronically, a deferral agreement in accordance with rules and procedures established by the Administrator and the provisions of this Article 4.

A new deferral agreement must be timely executed for each Plan Year during which the Eligible Employee or Director desires to defer Compensation.  An Eligible Employee or Director who does not timely execute a deferral agreement shall be deemed to have elected zero deferrals of Compensation for such Plan Year.  

A deferral agreement may be changed or revoked during the period specified by the Administrator.  Except as provided in Section 9.3 or in Section 4.01(c) of the Adoption Agreement, a deferral agreement becomes irrevocable at the close of the specified period.

		
	4.2
	Amount of Deferral.  An Eligible Employee or Director may elect to defer Compensation in any amount permitted by Section 4.01(a) of the Adoption Agreement. 

		
	4.3
	Timing of Election to Defer.  Each Eligible Employee or Director who desires to defer Compensation otherwise payable during a Plan Year must execute a deferral agreement within the period preceding the Plan Year specified by the Administrator.  Each Eligible Employee who desires to defer Compensation that is a Bonus must execute a deferral agreement within the period preceding the Plan Year during which the Bonus is earned that is specified by the Administrator, except that if the Bonus can be treated as performance based compensation as described in Code Section 409A(a)(4)(B)(iii), the deferral agreement may be executed within the period specified by the Administrator, which period, in no event, shall end after the date which is six months prior to the end of the period during which the Bonus is earned, provided the Participant has performed services continuously from the later of the beginning of the performance period or the date the performance criteria are established through the date the Participant executed the deferral agreement and provided further that the compensation has not yet become ‘readily ascertainable’ within the meaning of Reg. Sec 1.409A-2(a)(8).  In addition, if the Compensation qualifies as ‘fiscal year compensation’ within the meaning of Reg. Sec. 1.409A-2(a)(6), the deferral agreement may be made not later than the end of the Employer’s taxable year immediately preceding the first taxable year of the Employer in which any services are performed for which such Compensation is payable.

Except as otherwise provided below, an employee who is classified or designated as an Eligible Employee during a Plan Year or a Director who is designated as eligible to participate during a Plan Year may elect to defer Compensation otherwise payable during the remainder of such Plan Year in accordance with the rules of this Section 4.3 by executing a deferral agreement within the thirty (30) day period beginning on the date the employee is classified or designated as an Eligible Employee or the date the Director is designated as eligible, whichever is applicable, if permitted by Section 4.01(b)(ii) of the Adoption Agreement.  If Compensation is based on a specified performance period that begins before the Eligible Employee or Director executes his deferral agreement, the election will be deemed to apply to the portion of such Compensation equal to the total amount of Compensation for the performance period multiplied by the ratio of the number of days remaining in the performance period after the election becomes irrevocable and effective over the total number of days in the performance period.  The rules of this paragraph shall not apply unless the Eligible Employee or Director can be treated as initially eligible in accordance with Reg. Sec. 1.409A-2(a)(7).

		
	4.4
	Election of Payment Schedule and Form of Payment. 

All elections of a payment schedule and a form of payment will be made in accordance with rules and procedures established by the Administrator and the provisions of this Section 4.4.

(a)    If the Plan Sponsor has elected to permit annual distribution elections in accordance with Section 6.01(h) of the Adoption Agreement the following rules apply.  At the time an Eligible Employee or Director completes a deferral agreement, the Eligible Employee or Director must elect a distribution event (which includes a specified time) and a form of payment for the Compensation subject to the deferral agreement from among the options the Plan Sponsor has made available for this purpose and which are specified in 6.01(b) of the Adoption Agreement.  Prior to the time required by Reg. Sec. 1.409A-2, the Eligible Employee or Director shall elect a distribution event (which includes a specified time) and a form of payment for any Employer contributions that may be credited to the Participant’s Account during the Plan Year. If an Eligible Employee or Director fails to elect a distribution event, he shall be deemed to have elected Separation from Service as the distribution event.  If he fails to elect a form of payment, he shall be deemed to have elected a lump sum form of payment.

(b)    If the Plan Sponsor has elected not to permit annual distribution elections in accordance with Section 6.01(h) of the Adoption Agreement the following rules apply.  At the time an Eligible Employee or Director first completes a deferral agreement but in no event later than the time required by Reg. Sec. 1.409A-2, the Eligible Employee or Director must elect a distribution event (which includes a specified time) and a form of payment for amounts credited to his Account from among the options the Plan Sponsor has made available for this purpose and which are specified in Section 6.01(b) of the Adoption Agreement.  If an Eligible Employee or Director fails to elect a distribution event, he shall be deemed to have elected Separation from Service in the distribution event.  If the fails to elect a form of payment, he shall be deemed to have elected a lump sum form of payment.

.

ARTICLE 5 – EMPLOYER CONTRIBUTIONS

		
	5.1
	Matching Contributions.  If elected by the Plan Sponsor in Section 5.01(a) of the Adoption Agreement, the Employer will credit the Participant’s Account with a matching contribution determined in accordance with the formula specified in Section 5.01(a) of the Adoption Agreement.  The matching contribution will be treated as allocated to the Participant’s Account at the time specified in Section 5.01(a)(iii) of the Adoption Agreement.

		
	5.2
	Other Contributions.  If elected by the Plan Sponsor in Section 5.01(b) of the Adoption Agreement, the Employer will credit the Participant’s Account with a contribution determined in accordance with the formula or method specified in Section 5.01(b) of the Adoption Agreement.  The contribution will be treated as allocated to the Participant’s Account at the time specified in Section 5.01(b)(iii) of the Adoption Agreement.

ARTICLE 6 – ACCOUNTS AND CREDITS

		
	6.1
	Establishment of Account.  For accounting and computational purposes only, the Administrator will establish and maintain an Account on behalf of each Participant which will reflect the credits made pursuant to Section 6.2, distributions or withdrawals, along with the earnings, expenses, gains and losses allocated thereto, attributable to the hypothetical investments made with the amounts in the Account as provided in Article 7.  The Administrator will establish and maintain such other records and accounts, as it decides in its discretion to be reasonably required or appropriate to discharge its duties under the Plan.

		
	6.2
	Credits to Account.  A Participant’s Account will be credited for each Plan Year with the amount of his elective deferrals under Section 4.1 at the time the amount subject to the deferral election would otherwise have been payable to the Participant and the amount of Employer contributions treated as allocated on his behalf under Article 5.  

ARTICLE 7 – INVESTMENT OF CONTRIBUTIONS

		
	7.1
	Investment Options.  The amount credited to each Account shall be treated as invested in the investment options designated for this purpose by the Administrator.

		
	7.2
	Adjustment of Accounts.  The amount credited to each Account shall be adjusted for hypothetical investment earnings, expenses, gains or losses in an amount equal to the earnings, expenses, gains or losses attributable to the investment options selected by the party designated in Section 9.01 of the Adoption Agreement from among the investment options provided in Section 7.1.  If permitted by Section 9.01 of the Adoption Agreement, a Participant (or the Participant’s Beneficiary after the death of the Participant) may, in accordance with rules and procedures established by the Administrator, select the investments from among the options provided in Section 7.1 to be used for the purpose of calculating future hypothetical investment adjustments to the Account or to future credits to the Account under Section 6.2 effective as of the Valuation Date coincident with or next following notice to the Administrator.  Each Account shall be adjusted as of each Valuation Date to reflect: (a) the hypothetical earnings, expenses, gains and losses described above; (b) amounts credited pursuant to Section 6.2; and (c) distributions or withdrawals.  In addition, each Account may be adjusted for its allocable share of the hypothetical costs and expenses associated with the maintenance of the hypothetical investments provided in Section 7.1.

ARTICLE 8 – RIGHT TO BENEFITS

		
	8.1
	Vesting.  A Participant, at all times, has a 100% nonforfeitable interest in the amounts credited to his Account attributable to his elective deferrals made in accordance with Section 4.1.

A Participant’s right to the amounts credited to his Account attributable to Employer contributions made in accordance with Article 5 shall be determined in accordance with the relevant schedule and provisions in Section 7.01 of the Adoption Agreement. Upon a Separation from Service and after application of the provisions of Section 7.01 of the Adoption Agreement, the Participant shall forfeit the nonvested portion of his Account.

		
	8.2
	Death.  The Plan Sponsor may elect to accelerate vesting upon the death of the Participant in accordance with Section 7.01(c) of the Adoption Agreement and/or to accelerate distributions upon Death in accordance with Section 6.01(b) or Section 6.01(d) of the Adoption Agreement.  If the Plan Sponsor does not elect to accelerate distributions upon death in accordance with Section 6.01(b) or Section 6.01(d) of the Adoption Agreement, the vested amount credited to the Participant’s Account will be paid in accordance with the provisions of Article 9.

A Participant may designate a Beneficiary or Beneficiaries, or change any prior designation of Beneficiary or Beneficiaries in accordance with rules and procedures established by the Administrator.

A copy of the death notice or other sufficient documentation must be filed with and approved by the Administrator.  If upon the death of the Participant there is, in the opinion of the Administrator, no designated Beneficiary for part or all of the Participant’s vested Account, such amount will be paid to his estate (such estate shall be deemed to be the Beneficiary for purposes of the Plan) in accordance with the provisions of Article 9.

		
	8.3
	Disability.  If the Plan Sponsor has elected to accelerate vesting upon the occurrence of a Disability in accordance with Section 7.01(c) of the Adoption Agreement and/or to permit distributions upon Disability in accordance with Section 6.01(b) or Section 6.01(d) of the Adoption Agreement, the determination of whether a Participant has incurred a Disability shall be made by the Administrator in its sole discretion in a manner consistent with the requirements of Code Section 409A.

ARTICLE 9 – DISTRIBUTION OF BENEFITS

		
	9.1
	Amount of Benefits.  The vested amount credited to a Participant’s Account as determined under Articles 6, 7 and 8 shall determine and constitute the basis for the value of benefits payable to the Participant under the Plan. 

		
	9.2
	Method and Timing of Distributions.  Except as otherwise provided in this Article 9, distributions under the Plan shall be made in accordance with the elections made or deemed made by the Participant under Article 4.  Subject to the provisions of Section 9.6 requiring a six month delay for certain distributions to Key Employees, distributions following a payment event shall commence at the time specified in Section 6.01(a) of the Adoption Agreement.  If permitted by Section 6.01(g) of the Adoption Agreement, a Participant may elect, at least twelve months before a scheduled distribution event, to delay the payment date for a minimum period of sixty months from the originally scheduled date of payment, provided the election does not take effect for at least twelve months from the date on which the election is made.  The distribution election change must be made in accordance with procedures and rules established by the Administrator.  The Participant may, at the same time the date of payment is deferred, change the form of payment but such change in the form of payment may not effect an acceleration of payment in violation of Code Section 409A or the provisions of Reg. Sec. 1.409A-2(b).  For purposes of this Section 9.2, a series of installment payments is always treated as a single payment and not as a series of separate payments.   

		
	9.3
	Unforeseeable Emergency.  A Participant may request a distribution due to an Unforeseeable Emergency if the Plan Sponsor has elected to permit Unforeseeable Emergency withdrawals under Section 8.01(a) of the Adoption Agreement.  The request must be in writing and must be submitted to the Administrator along with evidence that the circumstances constitute an Unforeseeable Emergency. The Administrator has the discretion to require whatever evidence it deems necessary to determine whether a distribution is warranted, and may require the Participant to certify that the need cannot be met from other sources reasonably available to the Participant.   Whether a Participant has incurred an Unforeseeable Emergency will be determined by the Administrator on the basis of the relevant facts and circumstances in its sole discretion, but, in no event, will an Unforeseeable Emergency be deemed to exist if the hardship can be relieved:  (a) through reimbursement or compensation by insurance or otherwise, (b) by liquidation of the Participant’s assets to the extent such liquidation would not itself cause severe financial hardship, or (c) by cessation of deferrals under the Plan.  A distribution due to an Unforeseeable Emergency must be limited to the amount reasonably necessary to satisfy the emergency need and may include any amounts necessary to pay any federal, state, foreign or local income taxes and penalties reasonably anticipated to result from the distribution.  The distribution will be made in the form of a single lump sum cash payment.  If permitted by Section 8.01(b) of the Adoption Agreement, a Participant’s deferral elections for the remainder of the Plan Year will be cancelled upon a withdrawal due to an Unforeseeable Emergency.  If the payment of all or any portion of the Participant’s vested Account is being delayed in accordance with Section 9.6 at the time he experiences an Unforeseeable Emergency, the amount being delayed shall not be subject to the provisions of this Section 9.3 until the expiration of the six month period of delay required by section 9.6.

		
	9.4
	Payment Election Overrides.  If the Plan Sponsor has elected one or more payment election overrides in accordance with Section 6.01(d) of the Adoption Agreement, the following provisions apply.  Upon the occurrence  of the first event selected by the Plan Sponsor, the remaining vested amount credited to the Participant’s Account shall be paid in the form designated to the Participant or his Beneficiary regardless of whether the Participant had made different elections of time and /or form of payment or whether the Participant was receiving installment payments at the time of the event.  

		
	9.5
	Cashouts Of Amounts Not Exceeding Stated Limit.  If the vested amount credited to the Participant’s Account does not exceed the limit established for this purpose by the Plan Sponsor in Section 6.01(e) of the Adoption Agreement at the time he incurs a Separation from Service for any reason, the Employer shall distribute such amount to the Participant at the time specified in Section 6.01(a) of the Adoption Agreement in a single lump sum cash payment following such Separation from Service regardless of whether the Participant had made different elections of time or form of payment as to the vested amount credited to his Account or whether the Participant was receiving installments at the time of such termination.  A Participant’s Account, for purposes of this Section 9.5, shall include any amounts described in Section 1.3. 

		
	9.6
	Required Delay in Payment to Key Employees.  Except as otherwise provided in this Section 9.6, a distribution made on account of Separation from Service (or Retirement, if applicable) to a Participant who is a Key Employee as of the date of his Separation from Service (or Retirement, if applicable) shall not be made before the date which is six months after the Separation from Service (or Retirement, if applicable).  

(a) A Participant is treated as a Key Employee if (i) he is employed by a Related Employer any of whose stock is publicly traded on an established securities market, and (ii) he satisfies the requirements of Code Section 416(i)(1)(A)(i), (ii) or (iii), determined without regard to Code Section 416(i)(5), at any time during the twelve month period ending on the Identification Date.

(b) A Participant who is a Key Employee on an Identification Date shall be treated as a Key Employee for purposes of the six month delay in distributions for the twelve month period beginning on the first day of a month no later than the fourth month following the Identification Date.  The Identification Date and the effective date of the delay in distributions shall be determined in accordance with Section 1.06 of the Adoption Agreement.

(c) The Plan Sponsor may elect to apply an alternative method to identify Participants who will be treated as Key Employees for purposes of the six month delay in distributions if the method satisfies each of the following requirements.  The alternative method is reasonably designed to include all Key Employees, is an objectively determinable standard providing no direct or indirect election to any Participant regarding its application, and results in either all Key Employees or no more than 200 Key Employees being identified in the class as of any date.  Use of an alternative method that satisfies the requirements of this Section 9.6(c ) will not be treated as a change in the time and form of payment for purposes of Reg. Sec. 1.409A-2(b).

(d) The six month delay does not apply to payments described in Section 9.9(a),(b) or (d) or to payments that occur after the death of the Participant.  If the payment of all or any portion of the Participant’s vested Account is being delayed in accordance with this Section 9.6 at the time he incurs a Disability which would otherwise require a distribution under the terms of the Plan, no amount shall be paid until the expiration of the six month period of delay required by this Section 9.6.

		
	9.7
	Change in Control.  If the Plan Sponsor has elected to permit distributions upon a Change in Control, the following provisions shall apply.  A distribution made upon a Change in Control will be made at the time specified in Section 6.01(a) of the Adoption Agreement in the form elected by the Participant in accordance with the procedures described in Article 4.  Alternatively, if the Plan Sponsor has elected in accordance with Section 11.02 of the Adoption Agreement to require distributions upon a Change in Control, the Participant’s remaining vested Account shall be paid to the Participant or the Participant’s Beneficiary at the time specified in Section 6.01(a) of the Adoption Agreement as a single lump sum payment.  A Change in Control, for purposes of the Plan, will occur upon a change in the ownership of the Plan Sponsor, a change in the effective control of the Plan Sponsor or a change in the ownership of a substantial portion of the assets of the Plan Sponsor, but only if elected by the Plan Sponsor in Section 11.03 of the Adoption Agreement.  The Plan Sponsor, for this purpose, includes any corporation identified in this Section 9.7.  All distributions made in accordance with this Section 9.7 are subject to the provisions of Section 9.6. 
 
If a Participant continues to make deferrals in accordance with Article 4 after he has received a distribution due to a Change in Control, the residual amount payable to the Participant shall be paid at the time and in the form specified in the elections he makes in accordance with Article 4 or upon his death or Disability as provided in Article 8. 
 
Whether a Change in Control has occurred will be determined by the Administrator in accordance with the rules and definitions set forth in this Section 9.7.  A distribution to the Participant will be treated as occurring upon a Change in Control if the Plan Sponsor terminates the Plan in accordance with Section 10.2 and distributes the Participant’s benefits within twelve months of a Change in Control as provided in Section 10.3. 

		
	(a
	Relevant Corporations.  To constitute a Change in Control for purposes of the Plan, the event must relate to (i) the corporation for whom the Participant is performing services at the time of the Change in Control, (ii) the corporation that is liable for the payment of the Participant’s benefits under the Plan (or all corporations liable if more than one corporation is liable) but only if either the deferred compensation is attributable to the performance of services by the Participant for such corporation (or corporations) or there is a bona fide business purpose for such corporation (or corporations) to be liable for such payment and, in either case, no significant purpose of making such corporation (or corporations) liable for such payment is the avoidance of federal income tax, or (iii) a corporation that is a majority shareholder of a corporation identified in (i) or (ii), or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in (i) or (ii).  A majority shareholder is defined as a shareholder owning more than fifty percent (50%) of the total fair market value and voting power of such corporation. 

		
	(b
	Stock Ownership.  Code Section 318(a) applies for purposes of determining stock ownership.  Stock underlying a vested option is considered owned by the individual who owns the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the unvested option).  If, however, a vested option is exercisable for stock that is not substantially vested (as defined by Treasury Regulation Section 1.83-3(b) and (j)) the stock underlying the option is not treated as owned by the individual who holds the option. 

		
	(c
	Change in the Ownership of a Corporation.  A change in the ownership of a corporation occurs on the date that any one person or more than one person acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of such corporation.  If any one person or more than one person acting as a group is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of a corporation, the acquisition of additional stock by the same person or persons is not considered to cause a change in the ownership of the corporation (or to cause a change in the effective control of the corporation as discussed below in Section 9.7(d)).  An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the corporation acquires its stock in exchange for property will be treated as an acquisition of stock.  Section 9.7(c) applies only when there is a transfer of stock of a corporation (or issuance of stock of a corporation) and stock in such corporation remains outstanding after the transaction.  For purposes of this Section 9.7(c), persons will not be considered to be acting as a group solely because they purchase or own stock of the same corporation at the same time or as a result of a public offering.  Persons will, however, be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the corporation.  If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect to ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation. 

		
	(d
	Change in the effective control of a corporation.  A change in the effective control of a corporation occurs on the date that either (i) any one person, or more than one person acting as a group, acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing thirty percent (30%) or more of the total voting power of the stock of such corporation, or (ii) a majority of members of the corporation’s board of directors is replaced during any twelve month period by directors whose appointment or election is not endorsed by a majority of the members of the corporation’s board of directors prior to the date of the appointment or election, provided that for purposes of this paragraph (ii), the term corporation refers solely to the relevant corporation identified in Section 9.7(a) for which no other corporation is a majority shareholder for purposes of Section 9.7(a).  In the absence of an event described in Section 9.7(d)(i) or (ii), a change in the effective control of a corporation will not have occurred.  A change in effective control may also occur in any transaction in which either of the two corporations involved in the transaction has a change in the ownership of such corporation as described in Section 9.7(c) or a change in the ownership of a substantial portion of the assets of such corporation as described in Section 9.7(e).  If any one person, or more than one person acting as a group, is considered to effectively control a corporation within the meaning of this Section 9.7(d), the acquisition of additional control of the corporation by the same person or persons is not considered to cause a change in the effective control of the corporation or to cause a change in the ownership of the corporation within the meaning of Section 9.7(c).  For purposes of this Section 9.7(d), persons will or will not be considered to be acting as a group in accordance with rules similar to those set forth in Section 9.7(c) with the following exception.  If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect to the ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation. 

		
	(e
	Change in the ownership of a substantial portion of a corporation’s assets.  A change in the ownership of a substantial portion of a corporation’s assets occurs on the date that any one person, or more than one person acting as a group (as determined in accordance with rules similar to those set forth in Section 9.7(d)), acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the corporation or the value of the assets being disposed of determined without regard to any liabilities associated with such assets.  There is no Change in Control event under this Section 9.7(e) when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer.  A transfer of assets by a corporation is not treated as a change in ownership of such assets if the assets are transferred to (i) a shareholder of the corporation (immediately before the asset transfer) in exchange for or with respect to its stock, (ii) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the corporation, (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the corporation, or (iv) an entity, at least fifty (50%) of the total value or voting power of which is owned, directly or indirectly, by a person described in Section 9.7(e)(iii).  For purposes of the foregoing, and except as otherwise provided, a person’s status is determined immediately after the transfer of assets.

		
	9.8
	Permissible Delays in Payment.  Distributions may be delayed beyond the date payment would otherwise occur in accordance with the provisions of Articles 8 and 9 in any of the following circumstances as long as the Employer treats all payments to similarly situated Participants on a reasonably consistent basis.  

		
	(a
	The Employer may delay payment if it reasonably anticipates that its deduction with respect to such payment would be limited or eliminated by the application of Code Section 162(m).  Payment must be made during the Participant’s first taxable year in which the Employer reasonably anticipates, or should reasonably anticipate, that if the payment is made during such year the deduction of such payment will not be barred by the application of Code Section 162(m) or during the period beginning with the Participant’s Separation from Service and ending on the later of the last day of the Employer’s taxable year in which the Participant separates from service or the 15th day of the third month following the Participant’s Separation from Service.  If a scheduled payment to a Participant is delayed in accordance with this Section 9.8(a), all scheduled payments to the Participant that could be delayed in accordance with this Section 9.8(a) will also be delayed. 

		
	(b
	The Employer may also delay payment if it reasonably anticipates that the making of the payment will violate federal securities laws or other applicable laws provided payment is made at the earliest date on which the Employer reasonably anticipates that the making of the payment will not cause such violation.  

		
	(c
	The Employer reserves the right to amend the Plan to provide for a delay in payment upon such other events and conditions as the Secretary of the Treasury may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.  

		
	9.9
	Permitted Acceleration of Payment.  The Employer may permit acceleration of the time or schedule of any payment or amount scheduled to be paid pursuant to a payment under the Plan provided such acceleration would be permitted by the provisions of Reg. Sec. 1.409A-3(j)(4), including the following events:

		
	(a)
	Domestic Relations Order.  A payment may be accelerated if such payment is made to an alternate payee pursuant to and following the receipt and qualification of a domestic relations order as defined in Code Section 414(p).

		
	(b)
	Compliance with Ethics Agreements and Legal Requirements.  A payment may be accelerated as may be necessary to comply with ethics agreements with the Federal government or as may be reasonably necessary to avoid the violation of Federal, state, local or foreign ethics law or conflicts of laws, in accordance with the requirements of Code Section 409A.

		
	(c)
	De Minimis Amounts.  A payment will be accelerated if (i) the amount of the payment is not greater than the applicable dollar amount under Code Section 402(g)(1)(B), (ii) at the time the payment is made the amount constitutes the Participant’s entire interest under the Plan and all other plans that are aggregated with the Plan under Reg. Sec. 1.409A-1(c)(2). 

		
	(d)
	FICA Tax.  A payment may be accelerated to the extent required to pay the Federal Insurance Contributions Act tax imposed under Code Sections 3101, 3121(a) and 3121(v)(2) of the Code with respect to compensation deferred under the Plan (the “FICA Amount”).  Additionally, a payment may be accelerated to pay the income tax on wages imposed under Code Section 3401 of the Code on the FICA Amount and to pay the additional income tax at source on wages attributable to the pyramiding Code Section 3401 wages and taxes.  The total payment under this subsection (d) may not exceed the aggregate of the FICA Amount and the income tax withholding related to the FICA Amount. 

		
	(e)
	Section 409A Additional Tax.  A payment may be accelerated if the Plan fails to meet the requirements of Code Section 409A; provided that such payment may not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Code Section 409A.  

		
	(f)
	Offset.  A payment may be accelerated in the Employer’s discretion as satisfaction of a debt of the Participant to the Employer, where such debt is incurred in the ordinary course of the service relationship between the Participant and the Employer, the entire amount of the reduction in any of the Employer’s taxable years does not exceed $5,000, and the reduction is made at the same time and in the same amount as the debt otherwise would have been due and collected from the Participant.

		
	(g)
	Other Events.  A payment may be accelerated in the Administrator’s discretion in connection with such other events and conditions as permitted by Code Section 409A.  

ARTICLE 10 – AMENDMENT AND TERMINATION

		
	10.1
	Amendment by Plan Sponsor.  The Plan Sponsor reserves the right to amend the Plan (for itself and each Employer) through action of its Board of Directors.  No amendment can directly or indirectly deprive any current or former Participant or Beneficiary of all or any portion of his Account which had accrued and vested prior to the amendment.

		
	10.2
	Plan Termination Following Change in Control or Corporate Dissolution.  If so elected by the Plan Sponsor in 11.01 of the Adoption Agreement, the Plan Sponsor reserves the right to terminate the Plan and distribute all amounts credited to all Participant Accounts within the 30 days preceding or the twelve months following a Change in Control as determined in accordance with the rules set forth in Section 9.7. For this purpose, the Plan will be treated as terminated only if all agreements, methods, programs and other arrangements sponsored by the Related Employer immediately after the Change in Control which are treated as a single plan under Reg. Sec. 1.409A-1(c)(2) are also terminated so that all participants under the Plan and all similar arrangements are required to receive all amounts deferred under the terminated arrangements within twelve months of the date the Plan Sponsor irrevocably takes all necessary action to terminate the arrangements. In addition, the Plan Sponsor reserves the right to terminate the Plan within twelve months of a corporate dissolution taxed under Code Section 331 or with the approval of a bankruptcy court pursuant to 11 U. S. C. Section 503(b)(1)(A) provided that amounts deferred under the Plan are included in the gross incomes of Participants in the latest of (a) the calendar year in which the termination and liquidation occurs, (b) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture, or (c) the first calendar year in which payment is administratively practicable. 

		
	10.3
	Other Plan Terminations.  The Plan Sponsor retains the discretion to terminate the Plan if (a) all arrangements sponsored by the Plan Sponsor that would be aggregated with any terminated arrangement under  Code Section 409A and Reg. Sec. 1.409A-1(c)(2) are terminated, (b) no payments other than payments that would be payable under the terms of the arrangements if the termination had not occurred are made within twelve months of the termination of the arrangements, (c) all payments are made within twenty-four months of the date the Plan Sponsor takes all necessary action to irrevocably terminate and liquidate the arrangements, (d) the Plan Sponsor does not adopt a new arrangement that would be aggregated with any terminated arrangement under Code Section 409A and the regulations thereunder at any time within the three year period following the date of termination of the arrangement, and (e) the termination does not occur proximate to a downturn in the financial health of the Plan sponsor.  The Plan Sponsor also reserves the right to amend the Plan to provide that termination of the Plan will occur under such conditions and events as may be prescribed by the Secretary of the Treasury in generally applicable guidance published in the Internal Revenue Bulletin.

ARTICLE 11 – THE TRUST

		
	11.1
	Establishment of Trust.  The Plan Sponsor may but is not required to establish a trust to hold amounts which the Plan Sponsor may contribute from time to time to correspond to some or all amounts credited to Participants under Section 6.2.  In the event that the Plan Sponsor wishes to establish a trust to provide a source of funds for the payment of Plan benefits, any such trust shall be constructed to constitute an unfunded arrangement that does not affect the status of the Plan as an unfunded plan for purposes of Title I of ERISA and the Code.  If the Plan Sponsor elects to establish a trust in accordance with Section 10.01 of the Adoption Agreement, the provisions of Sections 11.2 and 11.3 shall become operative.

		
	11.2
	Rabbi Trust.  Any trust established by the Plan Sponsor shall be between the Plan Sponsor and a trustee pursuant to a separate written agreement under which assets are held, administered and managed, subject to the claims of the Plan Sponsor’s creditors in the event of the Plan Sponsor’s insolvency.  The trust is intended to be treated as a rabbi trust in accordance with existing guidance of the Internal Revenue Service, and the establishment of the trust shall not cause the Participant to realize current income on amounts contributed thereto.  The Plan Sponsor must notify the trustee in the event of a bankruptcy or insolvency.

		
	11.3
	Investment of Trust Funds.  Any amounts contributed to the trust by the Plan Sponsor shall be invested by the trustee in accordance with the provisions of the trust and the instructions of the Administrator.  Trust investments need not reflect the hypothetical investments selected by Participants under Section 7.1 for the purpose of adjusting Accounts and the earnings or investment results of the trust need not affect the hypothetical investment adjustments to Participant Accounts under the Plan.

ARTICLE 12 – PLAN ADMINISTRATION

		
	12.1
	Powers and Responsibilities of the Administrator.  The Administrator has the full power and the full responsibility to administer the Plan in all of its details, subject, however, to the applicable requirements of ERISA.  The Administrator’s powers and responsibilities include, but are not limited to, the following:

		
	(a)
	To make and enforce such rules and procedures as it deems necessary or proper for the efficient administration of the Plan;

		
	(b)
	To interpret the Plan, its interpretation thereof to be final, except as provided in Section 12.2, on all persons claiming benefits under the Plan;

		
	(c)
	To decide all questions concerning the Plan and the eligibility of any person to participate in the Plan;

		
	(d)
	To administer the claims and review procedures specified in Section 12.2;

		
	(e)
	To compute the amount of benefits which will be payable to any Participant, former Participant or Beneficiary in accordance with the provisions of the Plan;

		
	(f)
	To determine the person or persons to whom such benefits will be paid;

		
	(g)
	To authorize the payment of benefits;

		
	(h)
	To comply with the reporting and disclosure requirements of Part 1 of Subtitle B of Title I of ERISA;

		
	(i)
	To appoint such agents, counsel, accountants, and consultants as may be required to assist in administering the Plan;

		
	(j)
	By written instrument, to allocate and delegate its responsibilities, including the formation of an Administrative Committee to administer the Plan.

		
	12.2
	Claims and Review Procedures.

		
	(a)
	Claims Procedure.  

If any person believes he is being denied any rights or benefits under the Plan, such person may file a claim in writing with the Administrator.  If any such claim is wholly or partially denied, the Administrator will notify such person of its decision in writing.  Such notification will contain (i) specific reasons for the denial, (ii) specific reference to pertinent Plan provisions, (iii) a description of any additional material or information necessary for such person to perfect such claim and an explanation of why such material or information is necessary, and (iv) a description of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the person’s right to bring a civil action  following an adverse decision on review.  If the claim involves a Disability, the denial must also include the standards that governed the decision, including the basis for disagreeing with any health care professionals, vocational professionals or the Social Security Administration as well as an explanation of the scientific or clinical judgement underlying the denial.  Such notification will be given within 90 days (45 days in the case of a claim regarding Disability) after the claim is received by the Administrator.  The Administrator may extend the period for providing the notification by 90 days (30 days in the case of a claim regarding Disability, which may be extended an additional 30 days) if special circumstances require an extension of time for processing the claim and if written notice of such extension and circumstance is given to such person within the initial 90 day period (45 day period in the case of a claim regarding Disability).  If such notification is not given within such period, the claim will be considered denied as of the last day of such period and such person may request a review of his claim.
		
	(b)
	Review Procedure.  

Within 60 days (180 days in the case of a claim regarding Disability) after the date on which a person receives a written notification of denial of claim (or, if written notification is not provided, within 60 days (180 days in the case of a claim regarding Disability) of the date denial is considered to have occurred), such person (or his duly authorized representative) may (i) file a written request with the Administrator for a review of his denied claim and of pertinent documents and (ii) submit written issues and comments to the Administrator.  The Administrator will notify such person of its decision in writing.  Such notification will be written in a manner calculated to be understood by such person and will contain specific reasons for the decision as well as specific references to pertinent Plan provisions.  The notification will explain that the person is entitled to receive, upon request and free of charge, reasonable access to and copies of all pertinent documents and has the right to bring a civil action following an adverse decision on review.  The decision on review will be made within 60 days (45 days in the case of a claim regarding Disability).  The Administrator may extend the period for making the decision on review by 60 days (45 days in the case of a claim regarding Disability) if special circumstances require an extension of time for processing the request such as an election by the Administrator to hold a hearing, and if written notice of such extension and circumstances is given to such person within the initial 60-day period (45 days in the case of a claim regarding Disability).  If the decision on review is not made within such period, the claim will be considered denied. 

If the claim is regarding Disability, and the determination of Disability has not been made by the Social Security Administration or the Railroad Retirement Board, the person may, upon written request and free of charge, also receive the identification of medical or vocational experts whose advice was obtained in connection with the denial of a claim regarding Disability, even if the advice was not relied upon.

Before issuing any decision with respect to a claim involving Disability, the Administrator will provide to the person, free of charge, the following information as soon as possible and sufficiently in advance of the date on which the response is required to be provided to the person to allow the person a reasonable opportunity to respond prior to the due date of the response:

		
	•
	Any new or additional evidence considered, relied upon, or generated by the Administrator or other person making the decision; and 

		
	•
	A new or addition rationale if the decision will be based on that rationale.

		
	(c)
	Exhaustion of Claims Procedures and Right to Bring Legal Claim 
 
No action at law or equity shall be brought more than one (1) year after the Administrator’s affirmation of a denial of a claim, or, if earlier, more than four (4) years after the facts or events giving rising to the claimant’s allegation(s) or claim(s) first occurred.

		
	12.3
	Plan Administrative Costs.  All reasonable costs and expenses (including legal, accounting, and employee communication fees) incurred by the Administrator in administering the Plan shall be paid by the Plan to the extent not paid by the Employer.

March 2018

ARTICLE 13 – MISCELLANEOUS

		
	13.1
	Unsecured General Creditor of the Employer.  Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of the Employer.  For purposes of the payment of benefits under the Plan, any and all of the Employer’s assets shall be, and shall remain, the general, unpledged, unrestricted assets of the Employer.  Each Employer's obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future. 

		
	13.2
	Employer’s Liability.  Each Employer’s liability for the payment of benefits under the Plan shall be defined only by the Plan and by the deferral agreements entered into between a Participant and the Employer.  An Employer shall have no obligation or liability to a Participant under the Plan except as provided by the Plan and a deferral agreement or agreements.  An Employer shall have no liability to Participants employed by other Employers.

		
	13.3
	Limitation of Rights.  Neither the establishment of the Plan, nor any amendment thereof, nor the creation of any fund or account, nor the payment of any benefits, will be construed as giving to the Participant or any other person any legal or equitable right against the Employer, the Plan or the Administrator, except as provided herein; and in no event will the terms of employment or service of the Participant be modified or in any way affected hereby.

		
	13.4
	Anti-Assignment.  Except as may be necessary to fulfill a domestic relations order within the meaning of Code Section 414(p), none of the benefits or rights of a Participant or any Beneficiary of a Participant shall be subject to the claim of any creditor.  In particular, to the fullest extent permitted by law, all such benefits and rights shall be free from attachment, garnishment, or any other legal or equitable process available to any creditor of the Participant and his or her Beneficiary.  Neither the Participant nor his or her Beneficiary shall have the right to alienate, anticipate, commute, pledge, encumber, or assign any of the payments which he or she may expect to receive, contingently or otherwise, under the Plan, except the right to designate a Beneficiary to receive death benefits provided hereunder.  Notwithstanding the preceding, the benefit payable from a Participant’s Account may be reduced, at the discretion of the administrator, to satisfy any debt or liability to the Employer.

		
	13.5
	Facility of Payment.  If the Administrator determines, on the basis of medical reports or other evidence satisfactory to the Administrator, that the recipient of 

13‐1

any benefit payments under the Plan is incapable of handling his affairs by reason of minority, illness, infirmity or other incapacity, the Administrator may direct the Employer to disburse such payments to a person or institution designated by a court which has jurisdiction over such recipient or a person or institution otherwise having the legal authority under State law for the care and control of such recipient. The receipt by such person or institution of any such payments therefore, and any such payment to the extent thereof, shall discharge the liability of the Employer, the Plan and the Administrator for the payment of benefits hereunder to such recipient.
		
	13.6
	Notices.  Any notice or other communication to the Employer or Administrator in connection with the Plan shall be deemed delivered in writing if addressed to the Plan Sponsor at the address specified in Section 1.03 of the Adoption Agreement and if either actually delivered at said address or, in the case or a letter, 5 business days shall have elapsed after the same shall have been deposited in the United States mails, first-class postage prepaid and registered or certified.

		
	13.7
	Tax Withholding.  If the Employer concludes that tax is owing with respect to any deferral or payment hereunder, the Employer shall withhold such amounts from any payments due the Participant or from amounts deferred, as permitted by law, or otherwise make appropriate arrangements with the Participant or his Beneficiary for satisfaction of such obligation.  Tax, for purposes of this Section 13.7 means any federal, state, local or any other governmental income tax, employment or payroll tax, excise tax, or any other tax or assessment owing with respect to amounts deferred, any earnings thereon, and any payments made to Participants under the Plan.

		
	13.8
	Indemnification. (a) Each Indemnitee (as defined in Section 13.8(e)) shall be indemnified and held harmless by the Employer for all actions taken by him and for all failures to take action (regardless of the date of any such action or failure to take action), to the fullest extent permitted by the law of the jurisdiction in which the Employer is incorporated, against all expense, liability, and loss (including, without limitation, attorneys' fees, judgments, fines, taxes, penalties, and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Indemnitee in connection with any Proceeding (as defined in Subsection (e)).  No indemnification pursuant to this Section shall be made, however, in any case where (1) the act or failure to act giving rise to the claim for indemnification is determined by a court to have constituted willful misconduct or recklessness or (2) there is a settlement to which the Employer does not consent.

(b)   The right to indemnification provided in this Section shall include the right to have the expenses incurred by the Indemnitee in defending any Proceeding paid by the Employer in advance of the final disposition of the 

13‐2

Proceeding, to the fullest extent permitted by the law of the jurisdiction in which the Employer is incorporated; provided that, if such law requires, the payment of such expenses incurred by the Indemnitee in advance of the final disposition of a Proceeding shall be made only on delivery to the Employer of an undertaking, by or on behalf of the Indemnitee, to repay all amounts so advanced without interest if it shall ultimately be determined that the Indemnitee is not entitled to be indemnified under this Section or otherwise.
(c)  Indemnification pursuant to this Section shall continue as to an Indemnitee who has ceased to be such and shall inure to the benefit of his heirs, executors, and administrators.  The Employer agrees that the undertakings made in this Section shall be binding on its successors or assigns and shall survive the termination, amendment or restatement of the Plan.
(d)  The foregoing right to indemnification shall be in addition to such other rights as the Indemnitee may enjoy as a matter of law or by reason of insurance coverage of any kind and is in addition to and not in lieu of any rights to indemnification to which the Indemnitee may be entitled pursuant to the by-laws of the Employer.
(e)  For the purposes of this Section, the following definitions shall apply:
(1)  "Indemnitee" shall mean each person serving as an Administrator (or any other person who is an employee, director, or officer of the Employer) who was or is a party to, or is threatened to be made a party to, or is otherwise involved in, any Proceeding, by reason of the fact that he is or was performing administrative functions under the Plan.
(2)  "Proceeding" shall mean any threatened, pending, or completed action, suit, or proceeding (including, without limitation, an action, suit, or proceeding by or in the right of the Employer), whether civil, criminal, administrative, investigative, or through arbitration.
		
	13.9
	Successors.  The provisions of the Plan shall bind and inure to the benefit of the Plan Sponsor, the Employer and their successors and assigns and the Participant and the Participant’s designated Beneficiaries.

		
	13.10
	Disclaimer. It is the Plan Sponsor’s intention that the Plan comply with the requirements of Code Section 409A.  Neither the Plan Sponsor nor the Employer shall have any liability to any Participant should any provision of the Plan fail to satisfy the requirements of Code Section 409A.

		
	13.11
	Governing Law.  The Plan will be construed, administered and enforced according to the laws of the State specified by the Plan Sponsor in Section 12.01 of the Adoption Agreement.    

13‐3Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement, dated as of February
26, 2019 (“Agreement”), is hereby entered into by and between Jeffrey Benck (“Employee”)
and Benchmark Electronics, Inc., a Texas corporation (“Company”).

 

RECITALS

 

In connection with Employee’s appointment
by Company as its President and Chief Executive Officer, Employee and Company desire to enter into an employment agreement with
the terms and conditions set forth herein.

 

AGREEMENT

 

In consideration of the mutual covenants and
conditions contained herein, the parties hereto agree as follows:

 

SECTION 1.     
Employment. Company hereby agrees to employ Employee, and Employee hereby accepts employment by Company, upon the
terms and subject to the conditions hereinafter set forth. During the term of his employment, Employee shall have the title of
President and Chief Executive Officer of Company.

 

SECTION 2.     
Duties. In his capacity as President and Chief Executive Officer of Company, Employee shall perform such reasonable
executive duties commensurate with the position of president and chief executive officer of a public company of the size and scope
of Company or as otherwise specified in the Bylaws of Company, and such other reasonable executive duties as the Board of Directors
of Company (the “Board”) may from time to time reasonably prescribe with the concurrence of Employee. Employee
shall report directly and solely to the Chairman of the Board and collectively to the Board. It is the intention of the parties
hereto that Employee shall serve on the Board during the Employment Term (as defined in Section 3 below). Except as
otherwise provided herein, except as may otherwise be approved by the Board, and except during vacation periods and reasonable
periods due to sickness, personal injury or other disability, Employee agrees to devote substantially all of his available time
to the performance of his duties to Company hereunder, provided that nothing contained herein shall preclude Employee from
(i) serving on the board of directors of, or as an advisor to, any business or corporation on which he is serving on the date hereof
or, with the consent of the Board, serving on the board of directors of any other business or corporation including one or more
public companies, (ii) serving on the board of, or working for, any charitable or community organization and (iii) pursuing
his personal financial and legal affairs, so long as such activities do not materially interfere with the performance of Employee’s
duties hereunder. Notwithstanding clause (i) in the previous sentence, (A) the Board reserves the right to review and approve continuation
in any existing or other board or advisory services at any time during the Employment Term and (B) Employee shall immediately notify
the Board in the event that any of the activities set forth in the immediately previous sentence materially interfere with the
performance of Employee’s duties hereunder.

 

    

    2 

    

 

SECTION 3.     
Term. Except as otherwise provided herein, the term of this Agreement and Employee’s employment shall commence
on March 18, 2019 (the “Effective Date”). The initial term of this Agreement shall end on the second anniversary
of the Effective Date (the “Initial Term”), and shall automatically renew for successive one-year terms (each
such renewal, a “Renewal Term”), unless either party gives to the other party written notice of non-renewal
no fewer than sixty (60) days prior to the expiration of the Initial Term or any such Renewal Term. The Initial Term, as may be
extended for any Renewal Terms, is referred to as the “Employment Term”. The parties hereto agree that termination
of this Agreement and Employee’s employment at the expiration of the Initial Term or any Renewal Term as a result of the
other party’s failure or refusal to renew (a) by Company other than for Cause shall be considered a termination of Employee
without Cause hereunder or (b) by Employee shall be considered a termination without Good Reason hereunder. The provisions of this
Agreement shall survive any termination hereof.

 

SECTION 4.     
Compensation and Benefits. In consideration for the services of Employee hereunder during the Employment Term, Company
shall compensate Employee and perform its other obligations as provided in this Section 4.

 

(a)              
Base Salary. Commencing on the Effective Date, Employee shall be entitled to receive, and Company shall pay Employee
in equal bi-weekly installments, a base salary at a rate per annum of nine hundred thousand dollars ($900,000.00) as increased
from time to time by the Compensation Committee of the Board (the “Compensation Committee”). The annualized
amount of such base salary for each respective annual one-year period, including any increases hereafter approved, is referred
to as the “Base Salary” for such respective one-year period.

 

(b)              
Sign-On Bonus. Company shall pay Employee a cash sign-on bonus of eighty-five thousand dollars ($85,000.00) (the
 “Sign-On Bonus”), to be paid in a lump sum no later than sixty (60) days following the Effective Date; provided,
however, that Employee may elect to defer payment of some or all of the Sign-On Bonuses. Notwithstanding the foregoing,
in the event that Employee terminates his employment other than for Good Reason, or Company terminates Employee’s employment
for Cause, in each case, on or prior to the first anniversary of the Effective Date, Employee shall only be entitled to retain
a pro rata portion of the Sign-On Bonus, calculated by multiplying the Sign-On Bonus by a fraction, the numerator of which is the
number of days that have elapsed between the Effective Date and the date of such termination of employment and the denominator
of which is 365, and shall forfeit the remainder of the Sign-On Bonus.

 

(c)               
Annual Bonus. During the Employment Term, Employee shall be eligible to participate in any annual fiscal year bonus
plan that may be provided by Company for its key executive employees, as adopted by the Compensation Committee, subject to the
terms and conditions of any such bonus plan (the “Executive Bonus Plan”). For each fiscal year during Employee’s
employment, Employee’s target bonus opportunity under the Executive Bonus Plan shall be 115% of Base Salary if the specified
performance objectives are attained for such year, with a maximum bonus opportunity of 230% of Base Salary if the foregoing performance
objectives are exceeded by predetermined amounts; provided, however, that such bonus will be prorated in 2019 to
reflect Employee’s commencement of employment on the Effective Date, and no portion of the bonus will be payable in any given
year to the extent not earned. The terms and measures for earning Employee’s annual incentive bonus will be those Company
performance metrics established by the Compensation Committee, plus any additional measures deemed important by the Compensation
Committee for the President and Chief Executive Officer’s position, in all cases determined and communicated to Employee
as soon as practicable after the beginning, and in any event no later than the end of the first quarter, of the applicable fiscal
year, provided, that Employee will have an opportunity to discuss with the Compensation Committee the metrics that will
apply for a particular year prior to their being determined for each year other than 2019. All bonuses payable to Employee under
the Executive Bonus Plan in effect from time to time shall be determined and paid on or prior to March 15 of the year following
the year for which such bonus is earned and payable.

 

    

    3 

    

 

(d)              
Other Long Term Incentive Compensation. Employee shall be entitled to participate in all long-term incentive compensation
programs for key executives (if any) at a level commensurate with his position.

 

(e)              
Other Benefits. During the Employment Term, Employee shall be entitled to participate in and receive benefits under
any and all pension, deferred compensation, profit-sharing, life and other insurance, medical, dental, health and other welfare
and fringe benefit plans and programs, and be provided any and all other perquisites, that are from time to time made available
to executive employees or other employees of Company, including Company’s executive benefits program, which includes financial/tax
planning and executive physicals. Employee’s participation in any employee benefit plan or program will be subject to the
provisions, rules, and regulations of, or applicable to, the plan or program. Company provides no assurance as to the adoption
or continuation of any particular employee benefit plan or program. Employee shall also be entitled to an amount of paid vacation
per calendar year, and sick leave and illness and disability benefits, in accordance with such reasonable Company policy as may
be applicable from time to time to executive employees.

 

(f)               
No Director’s Fees. During the Employment Term, Employee shall serve as an employee director of Company, and
Employee shall not be eligible to receive fees, equity grants or other compensation paid to Company’s non-employee directors
for his service on the Board during the Employment Term.

 

(g)              
Office/Administrative Support. Employee will be provided with an executive office at Company’s headquarters
in Tempe, Arizona, and administrative support commensurate with his position as President and Chief Executive Officer of Company.

 

(h)              
Compensation Recovery Policy. To the extent that any compensation paid or payable pursuant to this Agreement is considered
 “incentive-based compensation” within the meaning and subject to the requirements of Section 10D of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), such compensation shall be subject to potential forfeiture
or recovery by Company in accordance with any compensation recovery policy adopted by the Board or any committee thereof in response
to the requirements of Section 10D of the Exchange Act and any implementing rules and regulations thereunder adopted by the
U.S. Securities and Exchange Commission or any national securities exchange on which Company’s common stock is then listed.
This Agreement may be unilaterally amended by Company to comply with any such compensation recovery policy.

 

    

    4 

    

 

(i)                
Equity Awards. As soon as reasonably practicable after the Effective Date, the Compensation Committee shall grant
Employee (i) as an inducement award, restricted stock units (“RSUs”) with a grant date fair value of one million
nine hundred thousand dollars ($1,900,000), scheduled to vest in four (4) equal installments on each anniversary of the Effective
Date, generally subject to Employee’s continued employment, (ii) RSUs with a grant date fair value of one million five hundred
thousand dollars ($1,500,000), scheduled to vest in four (4) equal installments on each anniversary of the Effective Date, generally
subject to Employee’s continued employment, and (iii) performance stock units (“PSUs”) with a grant date
fair value of one million five hundred thousand dollars ($1,500,000), with vesting subject to the achievement of the same performance
goals applicable to the annual PSU awards granted to other officers of Company in 2019 over a three (3)-year performance period
ending on December 31, 2021 and generally subject to Employee’s continued employment. The actual award agreements between
Employee and Company governing the grants of the RSUs and PSUs shall control and address all provisions in respect of such equity
awards, and the Compensation Committee will specify all terms and conditions of these awards, including the applicable performance-based
vesting conditions to be satisfied (such award agreements, the “Award Agreements”); provided, however,
that, the parties hereto agree that in the event of Employee’s death or Disability (as defined in Section 7(a)
of this Agreement) during the Employment Term, all of Employee’s outstanding equity awards will immediately vest, and any
applicable performance criteria applicable thereto will be deemed satisfied at target level notwithstanding any contrary provisions
set forth in the Award Agreements. Following the foregoing awards , Company shall make equity grants to Employee that are commensurate
with Employee’s role, which grants will be concurrent with Company’s normal annual grant cycle beginning in 2020.

 

SECTION 5.     
Expenses and Other Employment-Related Matters. It is acknowledged by the parties that Employee, in connection with
the services to be performed by him pursuant to the terms of this Agreement, will be required to make payments for travel, entertainment
and similar expenses. Company shall reimburse Employee for all reasonable expenses incurred by Employee in connection with the
performance of his duties hereunder or otherwise on behalf of Company, upon presentation of expense statements or vouchers and
such other information as Company may reasonably require in accordance with Company’s business expense reimbursement policies
as in effect from time to time. In addition, Company will reimburse Employee’s reasonable travel expenses, which may include
first-class or business-class travel, as appropriate, to and from his current residences to Tempe, Arizona, along with any associated
expenses including temporary lodging expenses and car rentals in the Phoenix metro area, in furtherance of Employee’s performance
of his services under this Agreement. In lieu of temporary lodging, Company may elect to provide Employee with corporate temporary
housing during the Employment Term. Employee shall also be entitled to reimbursement of reasonable outside legal expenses in connection
with the drafting and negotiation of this Agreement.

 

SECTION 6.     
Relocation. Employee will be required to relocate to Tempe, Arizona, or the surrounding Phoenix metro area. To minimize
the disruption of Employee’s relocation to Arizona, Company will provide Employee a cash relocation benefit payment of two
hundred and fifty thousand dollars ($250,000) (the “Relocation Payment”), to be paid in a lump sum no later
than sixty (60) days following the Effective Date. In the event that Employee terminates his employment other than for Good Reason,
or Company terminates Employee’s employment for Cause, in each case, (x) on or prior to the first anniversary of the Effective
Date, Employee will be required to reimburse Company for the entire Relocation Payment and (y) following the first anniversary
of the Effective Date and on or prior to the second anniversary of the Effective Date, Employee will be required to reimburse Company
for 50% of the Relocation Payment, in each case, to be paid to Company within ninety (90) days following such termination.

 

    

    5 

    

 

SECTION 7.     
Termination. Employee’s employment may terminate prior to the end of the Employment Term as provided in this
Section 7. The date upon which Employee’s termination of employment with Company occurs is the “Termination
Date”. For purposes of Sections 7(c) and 7(d) of this Agreement only, with respect to the timing of
any payments thereunder, the Termination Date shall mean the date on which a “separation from service” has occurred
for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), and the regulations
and guidance thereunder. Upon any termination of employment hereunder, Employee hereby agrees to immediately tender his resignation
from the Board, which resignation shall not be effective until and unless accepted by the Board.

 

(a)              
Death or Disability. Employee’s employment will terminate (x) immediately upon the death of Employee during
the Employment Term hereunder or (y) at the option of Company, upon 30 days’ prior written notice to Employee and/or
his appointed guardians or representatives, in the event of Employee’s Disability, as hereinafter defined. Employee shall
not be deemed disabled unless, as a result of Employee’s incapacity due to physical or mental illness (as determined by a
physician selected by the Employer or its insurers and reasonably acceptable to Employee or his representative), Employee shall
have been absent from and unable to perform the essential duties of his position, even with reasonable accommodation, on a full-time
basis for 120 consecutive business days (“Disability”). In the event of termination of Employee’s
employment pursuant to this Section 7(a):

 

(1)              
Company shall immediately pay Employee (or his estate) (i) any portion of Employee’s Base Salary accrued but unpaid
through the Termination Date and (ii) all payments and reimbursements under Section 5 hereof for expenses incurred
prior to such termination.

 

(2)              
Employee (or his estate) shall be entitled to receive all vested benefits under Company’s otherwise applicable plans
and programs.

 

(3)              
Employee shall be entitled to the benefits set forth in the proviso in Section 4(i), above, with respect to
outstanding equity awards.

 

(4)              
If Employee is eligible for and properly elects to continue Employee’s (or his dependents’) group health insurance
coverage, as in place immediately prior to the Termination Date, Company shall pay for the portion of the premium costs for such
coverage that Company would pay if Employee remained employed by Company, at the same level of coverage that was in effect as of
the Termination Date, for a period of 18 consecutive months after the Termination Date, provided, that such benefits
continuation will cease if and to the extent Employee (and, if applicable, his eligible dependents) become(s) eligible for similar
benefits by reason of new employment or Employee (or such dependents) otherwise is/are no longer eligible for continuation coverage
pursuant to applicable laws and plans.

 

    

    6 

    

 

(b)              
For Cause. Company may terminate Employee’s employment for Cause (as defined below) upon written notice by
Company to Employee, such Termination Date to be determined in accordance with the last paragraph of this Section 7(b)
below. In the event of termination of Employee’s employment for Cause pursuant to this Section 7(b), then Company
shall immediately pay Employee only the following: (i) any portion of Employee’s Base Salary accrued but unpaid through the
Termination Date, including any accrued but unused vacation, sick leave or other paid time off benefits, (ii) all payments and
reimbursement under Section 5 hereof for expenses incurred prior to such termination and (iii) all vested benefits
under Company’s otherwise applicable plans and programs.

 

For purposes of this Agreement, the term “Cause”
shall mean Employee’s (i) willful misconduct in the performance of his duties with Company, which willful misconduct
results in a material adverse effect on Company, provided that no such willful misconduct will constitute “Cause”
if it relates to an action taken or omitted by Employee in the good faith, reasonable belief that such action or omission was in
or not opposed to the best interests of Company; (ii) habitual neglect or disregard of his duties with Company that is materially
and demonstrably injurious to Company, after written notice from Company stating with reasonable specificity the duties Employee
has failed to perform; (iii) engaging in willful misconduct that harms the reputation of Company, provided that no such
willful misconduct will constitute “Cause” if it relates to an action taken or omitted by Employee in the good faith,
reasonable belief that such action or omission was in or not opposed to the best interests of Company; (iv) obstruction, impedance,
or failure to materially cooperate with an investigation authorized by the Board, a self-regulatory organization empowered with
self-regulatory responsibilities under federal or state laws, or a governmental department or agency; or (v) conviction of
a felony, provided that no such conviction will constitute “Cause” if it relates to an action determined by
the Board, in its sole discretion, to have been taken or omitted by Employee in the good faith, reasonable belief that such action
or omission was in or not opposed to the best interest of Company. Employee’s employment may not and shall not be terminated
for Cause unless the (1) Board provides Employee with written notice stating the conduct alleged to give rise to such Cause,
(2) Employee has been given an opportunity to be heard by the Board, (3) in the case of clause (i) or (ii) of the definition
of Cause, Employee has been given a reasonable time to cure, and Employee has not cured such negligence or failure to the reasonable
satisfaction of the Board and (4) the Board has approved such termination by majority vote of the members of the Board, excluding
Employee.

 

(c)              
By Company Without Cause. Company may terminate Employee’s employment at any time for any reason without Cause.
In the event of any termination of Employee’s employment by Company without Cause (including a termination by Company other
than for Cause at the expiration of the Initial Term or any Renewal Term) pursuant to this Section 7(c):

 

    

    7 

    

 

(1)              
Company shall immediately pay Employee (i) any portion of Employee’s Base Salary accrued but unpaid through the Termination
Date and (ii) all payments and reimbursement under Section 5 hereof for expenses incurred prior to such termination.

 

(2)              
Employee shall be entitled to receive all vested benefits under Company’s otherwise applicable plans and programs.

 

(3)              
Subject to Employee satisfying the conditions in Section 7(f), Company shall (i) pay Employee severance pay
equal to two times the sum of (A) the Base Salary at the Termination Date plus (B) the greater of Employee’s target bonus
under the Executive Bonus Plan in effect for the year in which the Termination Date occurs and the last annual cash bonus actually
paid to Employee prior to the Termination Date (the amount described in clauses (A) plus (B), the “Total Cash Amount”)
and (ii) provide Employee with pro rata vesting of all service or time-based unvested equity awards (including the RSUs) held by
Employee on the Termination Date (including any performance-based restricted stock units subject at such date only to service or
time-based conditions), in each case, based on the number of days Employee was employed by Company under this Agreement from the
applicable grant (or vesting commencement date, if earlier) date (or, if later, the applicable vesting date that most recently
preceded such Termination Date) of each such equity award to such Termination Date over the total number of days in the applicable
vesting period, and except as otherwise provided above in this sentence all unvested performance-based equity compensation (including
any PSUs) held by Employee shall be forfeited. The severance pay described in clause (i) in the previous sentence, less applicable
withholdings, shall be payable to Employee in a lump sum 60 calendar days after the Termination Date. Employee shall have no obligation
of mitigation or similar obligation with respect to such payment. In addition, if (and only if) the Termination Date in respect
of Employee’s termination without Cause or Termination for Good Reason (as defined below) occurs within the 24 months immediately
following a Change in Control (as defined below), then Employee shall receive all of the benefits set forth above at the same time
and in the same manner of payment described in this Section 7(c)(3), provided that (1) in lieu of the amount
described in clause (i) above, Employee shall receive an amount equal to three times the Total Cash Amount, and (2) in lieu of
the benefits described in clause (ii) above, Employee shall receive immediate vesting of all of Employee’s unvested equity
awards (including the RSUs) then outstanding, and immediate vesting of all of Employee’s unvested performance-based equity
awards (including the PSUs), which vesting shall be based on target performance.

 

(4)              
Subject to Employee satisfying the conditions in Section 7(f), if Employee is eligible for and properly elects
to continue Employee’s (or his dependents’) group health insurance coverage, as in place immediately prior to the Termination
Date, Company shall pay for the portion of the premium costs for such coverage that Company would pay if Employee remained employed
by Company, at the same level of coverage that was in effect as of the Termination Date, for a period of 18 consecutive months
after the Termination Date, provided that such benefits continuation will cease if and to the extent Employee becomes eligible
for similar benefits by reason of new employment or Employee otherwise is no longer eligible for continuation coverage pursuant
to applicable laws and plans.

 

    

    8 

    

 

(d)              
By Employee for Good Reason. Employee may terminate his employment at any time for Good Reason (as defined below).
In the event of any termination of Employee’s employment by Employee for Good Reason pursuant to this Section 7(d),
Employee shall receive all payments and benefits described in Section 7(c), and Employee and Company shall be subject
to all obligations and conditions set forth in Section 7(c) in respect of a Good Reason termination by Employee (including,
without limitation, in respect of Employee satisfying the conditions in Section 7(f) as they relate to the specified
provisions of Section 7(c), Company satisfying the obligations in respect of the Award Agreements, and the additional
payments required in the event of Employee’s termination of employment for Good Reason during the 24 months immediately following
a Change in Control). For purposes of this Agreement, “Good Reason” means the occurrence of any of the following
events without Employee’s consent: (A) a material diminution of Employee’s title, duties or responsibilities or change
of such title, duties or responsibilities to, or addition of title, duties and responsibilities of those inconsistent with his
positions as President and Chief Executive Officer, (B) a reduction in Employee’s Base Salary or annual bonus or long-term
incentive compensation opportunity, (C) a material breach by Company of any provision of this Agreement, or (D) requiring that
Employee relocate Employee’s primary workplace more than 35 miles from his prior workplace, provided, however, that
the occurrence of any of the events described in clauses (A) through (C) above will not constitute Good Reason unless (i) Employee
gives Company written notice within 60 days after the initial occurrence of any of such event that Employee believes that
such event constitutes Good Reason and, (ii) Company thereafter fails to cure any such event within 30 days after receipt
of such notice, and (iii) Employee’s Termination Date as a result of such event occurs within 180 days after the initial
occurrence of such event.

 

(e)              
By Employee Without Good Reason. Employee may terminate his employment at any time without Good Reason upon 30 days’
prior written notice to Company. In the event of any such termination of Employee’s employment by Employee without Good Reason
(including a termination by Employee at the expiration of the Initial Term or any Renewal Term) pursuant to this Section 7(e),
only the following shall be payable to Employee:

 

(1)              
Company shall immediately pay Employee (i) any portion of Employee’s Base Salary accrued but unpaid through the Termination
Date and (ii) all payments and reimbursements under Section 5 hereof for expenses incurred prior to such termination.

 

(2)              
Employee shall be entitled to receive all vested benefits under Company’s otherwise applicable plans and programs.

 

(f)               
Conditions For Severance and Benefits Continuation Payments. Notwithstanding anything above to the contrary, any
obligation of Company to provide the severance or benefits continuation payments under Sections 7(c)(3) and 7(c)(4)
(and the corresponding payments under Section 7(d) above) shall be contingent upon (1) Employee executing a general
release in a form attached hereto as Exhibit A, subject to updates for changes in applicable law, and such release becoming
irrevocable prior to the 60th calendar day after the Termination Date (the “Release Period”), and (2) Employee
strictly complying with the terms of this Agreement and any other written agreements between Company and Employee, including without
limitation Employee’s compliance with the obligations under Sections 9 and 10 below that survive the termination
of Employee’s employment.

 

    

    9 

    

 

(g)              
Parachute Payment Restrictions. If any payment or benefit to be paid or provided to Employee under this Agreement,
taken together with any payments or benefits otherwise paid or provided to Employee by Company or any corporation that is a member
of an “affiliated group” (as defined in Section 1504 of the Code without regard to Section 1504(b) of the Code) of
which Company is a member (the “other arrangements”), would collectively constitute a “parachute payment”
(as defined in Section 280G(b) (2) of the Code), and if the net after-tax amount of such parachute payment to Employee is less
than what the net after-tax amount to Employee would be if the aggregate payments and benefits otherwise constituting the parachute
payment were limited to three times Employee’s “base amount” (as defined in Section 280G(b)(3) of the Code) less
$1.00, then the aggregate payments and benefits otherwise constituting the parachute payment shall be reduced to an amount that
shall equal three times Employee’s base amount, less $1.00. Should such a reduction in payments and benefits be required,
Employee shall be entitled, subject to the penultimate sentence in this Section 7(g), to designate those payments and benefits
under this Agreement or the other arrangements that will be reduced or eliminated so as to achieve the specified reduction in aggregate
payments and benefits to Employee and avoid characterization of such aggregate payments and benefits as a parachute payment. Company
will provide Employee with all information reasonably requested by Employee to permit Employee to make such designation. To the
extent that Employee’s ability to make such a designation would cause any of the payments and benefits to become subject
to any additional tax under Code Section 409A, or if Employee fails to make such a designation within 10 business days
of receiving the requested information from Company, then Company shall achieve the necessary reduction in such payments and benefits
by first reducing or eliminating the portion of the payments and benefits that are payable in cash and then by reducing or eliminating
the non-cash portion of the payments and benefits, in each case in reverse order beginning with payments and benefits which are
to be paid or provided the furthest in time from the date of Company’s determination. For purposes of this Section 7(g),
a net after-tax amount shall be determined by taking into account all applicable income, excise and employment taxes, whether imposed
at the federal, state or local level, including the excise tax imposed under Section 4999 of the Code.

 

SECTION 8.     
Change in Control. For purposes of this Agreement, (1) the term “Person” means any individual,
corporation, partnership, trust, company, business, firm, association, organization, governmental instrumentality, other entity,
syndicate or group, (2) the term “Voting Securities” shall mean, as to any Person, the then-outstanding
securities of or other interests in such Person entitled to vote generally in the election of directors, trustees or similar managers
of such Person, (3) the term “Affiliate” means any entity that, directly or indirectly, is controlled by,
controls or is under common control with, Company or any entity in which Company has a significant equity interest and (4) the
term “Change in Control” shall mean the occurrence of any of the following events:

 

(a)              
during any period of 24 consecutive calendar months, individuals who were Directors of Company on the first day of such
period (the “Incumbent Directors”) cease for any reason to constitute a majority of Company’s Board; provided,
however, that any individual becoming a Director subsequent to the first day of such period whose election, or nomination
for election, by Company’s shareholders was approved by a vote of at least a majority of the Incumbent Directors shall be
considered as though such individual were an Incumbent Director, but excluding, for purposes of this proviso, any such individual
whose initial assumption of office occurs as a result of an actual or threatened proxy contest with respect to election or removal
of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person, in each case, other
than the management of Company or the Board;

 

    

    10 

    

 

(b)              
the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving
(x) Company or (y) any of its subsidiaries, but in the case of this clause (y) only if Company Voting Securities are issued
or issuable, or the sale or other disposition of all or substantially all the assets of Company to a Person that is not an Affiliate
(each of the foregoing events being hereinafter referred to as a “Reorganization”), in each case, unless, immediately
following such Reorganization, (i) all or substantially all the Persons who were the “beneficial owners” (as such term
is defined in Rule 13d-3 under the Exchange Act (or a successor rule thereto)) of Company Voting Securities outstanding immediately
prior to the consummation of such Reorganization continue to beneficially own, directly or indirectly, more than 50% of the combined
voting power of the then outstanding Voting Securities of the corporation or other entity resulting from such Reorganization (including,
without limitation, a corporation that, as a result of such transaction, owns Company or all or substantially all Company’s
assets either directly or through one or more subsidiaries) (the “Continuing Company”) in substantially the
same proportions as their ownership, immediately prior to the consummation of such Reorganization, of the outstanding Company Voting
Securities (excluding, for purposes of determining such proportions, any outstanding voting securities of the Continuing Company
that such beneficial owners hold immediately following the consummation of the Reorganization as a result of their ownership prior
to such consummation of voting securities of any corporation or other entity involved in or forming part of such Reorganization
other than Company), (ii) no Person (excluding any employee benefit plan (or related trust) sponsored or maintained by the Continuing
Company or any corporation controlled by the Continuing Company) beneficially owns, directly or indirectly, 50% or more of the
combined voting power of the then outstanding voting securities of the Continuing Company and (iii) at least a majority of the
members of the board of directors of the Continuing Company (or equivalent body) were Incumbent Directors at the time of the execution
of the definitive agreement providing for such Reorganization or, in the absence of such an agreement, at the time at which approval
of the Board was obtained for such Reorganization;

 

(c)              
the shareholders of Company approve a plan of complete liquidation or dissolution of Company unless such liquidation or
dissolution is part of a transaction or series of transactions described in paragraph (b) above that does not otherwise constitute
a Change in Control; or

 

(d)              
any Person (other than (A) Company, (B) any trustee or other fiduciary holding securities under an employee benefit
plan of Company or an Affiliate or (C) any company owned, directly or indirectly, by the shareholders of Company in substantially
the same proportions as their ownership of the voting power of Company Voting Securities) becomes the beneficial owner, directly
or indirectly, of securities of Company representing 50% or more of the combined voting power of Company Voting Securities; provided,
however, that for purposes of this paragraph (d), the following acquisitions shall not constitute a Change in Control: (i)
any acquisition directly from Company, (ii) any acquisition by an underwriter temporarily holding such Company Voting Securities
pursuant to an offering of such securities or (iii) any acquisition pursuant to a Reorganization that does not constitute a Change
in Control for purposes of paragraph (b) above.

 

    

    11 

    

 

SECTION 9.     
Confidential Information.

 

(a)              
Employee recognizes and acknowledges that certain proprietary, non-public information owned by Company and its affiliates,
including without limitation proprietary, non-public information regarding customers, pricing policies, methods of operation, proprietary
computer programs, sales products, profits, costs, markets, key personnel, technical processes, and trade secrets (hereinafter
called “Confidential Information”), are valuable, special and unique assets of Company and its affiliates. Employee
will not, during or after his term of employment, without the prior written consent of a member of the Board believed by Employee
to have been authorized by the Board for such purpose, knowingly and intentionally disclose any of the Confidential Information
obtained by him while in the employ of Company or during his prior service as a member of the Board to any person, firm, corporation,
association or other entity for any reason or purpose whatsoever, directly or indirectly (other than to an employee of Company
of its affiliates, a director of Company or its affiliates, or a person to whom disclosure is necessary or appropriate in Employee’s
good faith judgment in connection with the performance of his duties hereunder or otherwise on behalf of Company), unless and until
such Confidential Information becomes publicly available (other than as a consequence of the breach by Employee of his confidentiality
obligations under this Section 9), and except as may be required (or as Employee may be advised by counsel is required)
in connection with any judicial, administrative or other governmental proceeding or inquiry. In the event of the termination of
his employment, whether voluntary or involuntary and whether by Company or Employee, Employee will deliver to Company and will
not take with him any documents, or any other reproductions (in whole or in part) of any items, comprising Confidential Information
(except that Employee may retain his personal address, telephone and other contact lists and information and any other documents
or reproductions retained upon the advice of counsel). Notwithstanding any other provision hereof, the term “Confidential
Information” does not include any information that (a) is or becomes publicly available other than as the result of
the breach by Employee of his confidentiality obligations under this Section 9, (b) became, is or becomes available
to Employee on a non-confidential basis from a source, other than Company, that to Employee’s knowledge is not prohibited
from disclosing such information to Employee by a confidentiality obligation owed to Company or (c) was known to Employee
prior to becoming a member of the Board.

 

    

    12 

    

 

(b)              
This Agreement is not intended to limit or restrict, and shall not be interpreted in any manner that limits or restricts,
Employee from exercising any legally protected whistleblower rights (including pursuant to Section 21F of the Exchange Act (“Section
21F”)) or receiving an award for information provided to any government agency under any legally protected whistleblower
rights. Notwithstanding anything in this Agreement to the contrary, nothing in or about this Agreement prohibits Employee from:
(i) filing and, as provided for under Section 21F, maintaining the confidentiality of a claim with the SEC; (ii) providing
Confidential Information to the SEC, or providing the SEC with information that would otherwise violate this Section 9,
to the extent permitted by Section 21F; (iii) cooperating, participating or assisting in an SEC investigation or proceeding
without notifying Company; or (iv) receiving a monetary award as set forth in Section 21F.

 

(c)              
Employee acknowledges that Employee has been notified that under the Defend Trade Secrets Act: (i) no individual will
be held criminally or civilly liable under federal or state trade secret law for disclosure of a trade secret (as defined in the
Economic Espionage Act) that is: (x) made in confidence to a federal, state, or local government official, either directly
or indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law, or
(y) made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that
it is not made public; and (ii) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected
violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret information in the
court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade
secret, except as permitted by court order.

 

SECTION 10. 
Non-Competition, Non-Solicitation, Non-Disparagement. During the period of Employee’s employment with Company
pursuant to this Agreement and for a period of two (2) years thereafter, Employee will not knowingly and intentionally (i) engage,
directly or indirectly, alone or as a partner, officer, director, employee, or consultant of any other business organization in
any business activities that are substantially and directly competitive with the business activities then conducted by Company
anywhere in the world; it being mutually understood and agreed that customers or suppliers of Company who are not also primarily
engaged in providing electronics design, engineering or manufacturing or precision manufacturing services and who purchase goods
or services from, or supply goods or services to, Company shall not be deemed to be engaging in business activities that are substantially
and directly competitive with the business activities conducted by Company (the “Designated Industry”); (ii)
divert to any competitor of Company in the Designated Industry any customer of Company; (iii) solicit or encourage any officer,
employee, or consultant of Company to leave its employ for employment by or with any competitor of Company in the Designated Industry
or, on behalf of herself or any other Person, hire, employ or engage any such person; or (iv) engage at any time in any form of
conduct or make any statements, or direct any other person or entity to engage in any conduct or make any statements, that disparage,
criticize or otherwise impair the reputation of Company, its subsidiaries, their products and services, or their past and present
officers, directors, employees and consultants. The parties hereto acknowledge that (A) Employee’s non-competition obligations
hereunder will not preclude Employee from (x) owning less than 5% of the common stock of any publicly traded corporation or other
Person conducting business activities in the Designated Industry or (y) serving as a director of a corporation or other Person
engaged in the manufacturing or electronics industry whose business operations are not substantially and directly competitive with
those of Company; and (B) the restrictions set forth in clause (iv) of the preceding sentence shall not apply to any statements
by Employee that are made truthfully in response to a subpoena or as otherwise required by applicable law or other compulsory legal
process. Company agrees to direct the members of its Board and executive management team to not engage in any conduct or to make
any statements, or direct any other person to engage in any conduct or to make any statements, that disparage, criticize or otherwise
impairs the reputation of Employee.

 

    

    13 

    

 

SECTION 11.  
Arbitration.

 

(a)              
Subject Claims; Initiation of Binding Arbitration. Company and Employee agree that all (i) disputes and claims
of any nature that Employee may have against Company and any subsidiaries or affiliates and their officers and employees, including
all federal or state statutory, contractual, and common law claims (including all employment discrimination claims) arising from,
concerning, or relating in any way to our employment relationship, (ii) all disputes and claims of any nature that Company
may have against Employee, or (iii) any dispute among us about the arbitrability of any claims or controversy will be resolved
out of court. Any such claims will be submitted exclusively first to mandatory mediation and, if mediation is unsuccessful, to
mandatory arbitration.

 

(b)              
Arbitration Procedure. Unless otherwise agreed in writing by Company and Employee, any arbitration proceeding will
be held in Tempe, Arizona. The arbitration will be conducted under the National Rules for the Resolution of Employment Disputes
of the American Arbitration Association (“AAA Rules”). The claim will be submitted to a single experienced,
neutral employment arbitrator selected in accordance with the AAA Rules. The arbitrator shall have full authority to award or grant
all remedies provided by law. The arbitrator shall have full authority to permit adequate discovery. At the conclusion of the arbitration
proceeding, the arbitrator shall issue a written, reasoned award. The award of the arbitration shall be final and binding. A judgment
upon the award may be entered and enforced by any court having jurisdiction. Each party shall pay the fees of their respective
attorneys, the expenses of their witnesses, and any other expenses incurred by such party in connection with the arbitration, provided,
however, that Company shall pay for the fees of the arbitrator and the administrative and filing fees charged by the AAA.

 

(c)              
Nonjoinder. In no event may an arbitrator allow any party to join claims of any other employee in a single arbitration
proceeding without consent of Employee and Company. In the event that the dispute or claim involves a written agreement between
Employee and Company (including this Agreement) or a compensation plan, the arbitrator will have no authority to add to, detract
from, or otherwise modify the agreement or plan provisions other than as expressly set forth in that agreement or plan. Should
this arbitration agreement conflict with the arbitration provisions of any other agreement that Employee has with Company, the
terms of this agreement will govern.

 

(d)              
Equitable Relief. In the event that irreparable injury could occur during the pendency of a mediation or arbitration
proceeding, to restore or maintain the status quo until the dispute has been resolved by mediation or arbitration a party may apply
to a court of competent jurisdiction to obtain a temporary or preliminary injunction in aid of mediation and arbitration.

 

    

    14 

    

 

(e)              
Binding Agreement. Notwithstanding any policy of Company permitting it to alter its policies, procedures, and the
terms and conditions of employment, this agreement to arbitrate is binding and cannot be modified or superseded except by a written
agreement signed by an authorized representative of Company and Employee.

 

SECTION 12.  
General.

 

(a)              
Notices. All notices and other communications hereunder will be in writing, and will be deemed to have been duly
given if delivered personally, or three business days after being mailed by certified mail, return receipt requested, or upon receipt
if sent by written telecommunications, to the relevant address set forth below, or to such other address as the recipient of such
notice or communication will have specified to the other party hereto in accordance with this Section 12(a):

 

If to Company, to:

 

Benchmark Electronics, Inc.

56 South Rockford Drive

 

Tempe, Arizona 85281

Attn: Corporate Secretary

Fax No.: 623-300-7099

 

If to Employee, to:

 

Jeffrey Benck

(at Employee’s primary address on the books and records of Company from time to time)

 

(b)              
Withholding; No Offset. All payments required to be made by Company under this Agreement to Employee will be subject
to the withholding of such amounts, if any, relating to federal, state and local taxes as may be required by law. No payment under
this Agreement will be subject to offset or reduction attributable to any amount of obligation Employee may owe or be liable for
to Company or any other Person.

 

(c)              
Equitable Remedies. Each of the parties hereto acknowledges and agrees that upon any breach by Employee of his obligations
under any of Sections 8 and 9 hereof, Company will have no adequate remedy at law, and accordingly will be entitled
to specific performance and other appropriate injunctive and equitable relief.

 

(d)              
Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, such provision
will be fully severable and this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision
never comprised a part hereof; and the remaining provisions hereof will remain in full force and effect and will not be affected
by the illegal, invalid or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid
or unenforceable provision, there will be added automatically as part of this Agreement a provision as similar in its terms to
such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

 

    

    15 

    

 

(e)              
Waivers. No delay or omission by either party hereto in exercising any right, power or privilege hereunder will impair
such right, power or privilege, nor will any single or partial exercise of any such right, power or privilege preclude any further
exercise of any other right, power or privilege.

 

(f)               
Counterparts. This Agreement may be executed in multiple counterparts, each of which will be deemed an original,
and all of which together will constitute one and the same instrument.

 

(g)              
Captions. The captions in this Agreement are for convenience of reference only and will not limit or otherwise affect
any of the terms or provisions hereof.

 

(h)              
Reference to Agreement.  Use of the words “herein”, hereof”, “hereto” and the like
in this Agreement refer to this Agreement only as a whole and not to any particular Section, subsection or provision of this Agreement,
unless otherwise noted. Any reference to a “Section” or “subsection” shall refer to a Section or subsection
of this Agreement, unless otherwise noted.

 

(i)                
Successors and Binding Agreement. Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization or otherwise) to all or substantially all of the business or assets of Company, by agreement in form
and substance satisfactory to Employee, expressly to assume and agree to perform this Agreement in the same manner and to the same
extent Company would be required to perform if no such succession had taken place. This Agreement shall be binding upon and inure
to the benefit of Company and any successor to Company, including without limitation any Persons acquiring directly or indirectly
all or substantially all of the business or assets of Company whether by purchase, merger, consolidation, reorganization, or otherwise
(and such successor shall thereafter be deemed the “Company” for the purposes of this Agreement), but shall not otherwise
be assignable, transferable or delegable by Company. Without limiting the foregoing, the surviving or transferee corporation or
other person in any such transaction (whether by merger, consolidation, reorganization, transfer of business or assets, or otherwise)
shall be subject to the provisions of Section 7 hereof and shall be deemed to be Company for purposes of such provisions,
regardless of whether such transaction itself constituted a Change of Control of Company.

 

(j)                
Entire Agreement; Amendments and Waivers. This Agreement contains the entire understanding of the parties, and supersedes
all prior agreements and understandings between them, relating to the subject matter hereof, including any letters or term sheets.
This Agreement may not be amended or modified except by a written instrument hereafter signed by each of the parties hereto, and
may not be waived except by a written instrument hereafter signed by the party granting such waiver. Company has not made any promise
or entered into any agreement that is not expressed in this Agreement, and Employee is not relying upon any statement or representation
of any agent of Company. In executing this Agreement, Employee is relying solely on his judgment and has been represented by the
legal counsel of his choice in connection with this Agreement who has read and explained to Employee the entire contents of this
Agreement, as well as explained the legal consequences. No agreements or representation, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement.

 

    

    16 

    

 

(k)              
Governing Law. This Agreement and the performance hereof shall be governed and construed in all respects, including
but not limited to as to validity, interpretation and effect, by the laws of the State of Arizona, without regard to the principles
or rules of conflict of laws thereof.

 

(l)                
Section 409A. This Agreement is intended to satisfy, or be exempt from, the requirements of Section 409A of the Code,
including current and future guidance and regulations interpreting such provisions (collectively, “Code Section 409A”),
and should be interpreted accordingly. For purposes of Code Section 409A, any installment payments provided under this Agreement
shall each be treated as a separate payment. Notwithstanding anything to the contrary in this Agreement, if any amount payable
pursuant to this Agreement constitutes a deferral of compensation subject to Code Section 409A, and if such amount is payable as
a result of Employee’s “separation from service” at such time as Employee is a “specified employee”
(within the meaning of those terms as defined in Code Section 409A), then no payment shall be made, except as permitted under Code
Section 409A, prior to the first business day after the date that is six months after Employee’s separation from service.
If the Release Period spans two calendar years, payment of the cash severance amounts described in Section 7(c)(3) hereof
shall be made in the second calendar year. Except for any tax amounts withheld by Company from the payments or other consideration
hereunder and any employment taxes required to be paid by Company, Employee shall be responsible for payment of any and all taxes
owed in connection with the consideration provided for in this Agreement.

 

[Signature Page Follows]

 

     

    1

    

 

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

 

 

	 	Benchmark Electronics, inc.,
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Stephen Beaver	 
	 	 	Name:	Stephen Beaver	 
	 		Title:	Vice President, General Counsel & Secretary
	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	Employee,
	 	 	 	 	 
	 	 	 	 	 
	 	By:  	/s/ Jeffrey Benck	 
	 	 	Name:  	Jeffrey Benck	 

  

     

     

    

 

Exhibit A

 

Release

 

THIS RELEASE (this “Release”)
is executed by Jeffrey Benck (“Executive”) and delivered by him to Benchmark Electronics, Inc. (“Benchmark”).

 

WHEREAS, Executive and Benchmark entered into
an employment agreement dated as of February 26, 2019 (the “Employment Agreement”); and

 

WHEREAS, it is a condition to certain obligations
under the Employment Agreement that Executive execute and deliver to Benchmark this Release.

 

NOW, THEREFORE, in consideration of the payments
and benefits set forth in the Employment Agreement and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Executive agrees as follows:

 

1.                 
Release and Waiver. Executive, on behalf of himself and his agents, heirs, executors, administrators, successors
and assigns, hereby RELEASES AND FOREVER DISCHARGES Benchmark, including without limitation Benchmark’s parents, subsidiaries,
affiliates and other related companies, as well as any and all of their officers, directors, agents, employees, partners, shareholders,
attorneys, insurers, predecessors, successors and assigns (collectively the “Released Parties”) from any and
all claims, damages, complaints, grievances, causes of action, suits, liabilities, demands and expenses (including attorneys’
fees) of any nature whatsoever, both at law and in equity (except those expressly reserved herein), whether known or unknown, now
existing or which may result from the existing state of things, which Executive now has or ever had against the Released Parties
from the beginning of time to the date of execution of this Release (set forth underneath Executive’s signature hereto).
In particular, without limitation of the foregoing, the Released Parties are specifically released from and held harmless from
any and all claims arising out of or related to Executive’s employment relationship with Benchmark, including, without limitation,
his separation from employment. It is Executive’s intention that this Release constitute a full and final general release
of all such claims and that this release be as broad as possible. This Release does not release or waive any rights or claims
that may arise after the date this Release is executed.

 

2.                 
Scope of Release. Without limiting the foregoing in any way, Executive’s release and waiver includes, but is
not limited to, any rights or claims Executive may have under: the Age Discrimination in Employment Act of 1967 (29 U.S.C.
 § 621, et seq.) (“ADEA”); Title VII of the Civil Rights Acts of 1964; 42 U.S.C. § 1981;
the Family and Medical Leave Act; the Fair Labor Standards Act; the Equal Pay Act; the Rehabilitation Act of 1973 and the Americans
with Disabilities Act; ERISA; WARN; the Older Workers Benefit Protection Act (“OWBPA”); the National Labor Relations
Act; and any rights, actions, claims (including medical and health benefit claims) or liability under any state
or local statute or regulation, including but not limited to the Arizona Wage Act, Arizona Equal Pay Act, Arizona Employment
Protection Act, Arizona Civil Rights Act, Arizona Occupational Health and Safety Act, Arizona Right
to Work Act, Arizona Drug Testing of Executives Act, Arizona Medical Marijuana Act, Arizona criminal
code and all state or local whistleblower protection statutes, codes or regulations and common law principles, including tort,
contract and equitable claims, except claims or proceedings necessary to enforce the provisions of this Release;
and any other federal, state or local laws or regulations concerning employment or prohibiting employment discrimination, harassment
or retaliation. This release and waiver also includes any claims against Benchmark and/or the Released Parties based on contract
or tort, claims for defamation, libel, invasion of privacy, intentional or negligent infliction of emotional distress, wrongful
termination, constructive discharge, breach of contract, breach of the covenant of good faith and fair dealing, breach of fiduciary
duty and fraud. Executive agrees that he shall never file a lawsuit or other complaint challenging the validity or enforceability
of this Release. Executive waives and releases any claim that he has or may have to reemployment after the execution of this Release.

 

    A-1 

     

    

 

3.                 
Rights Not Relinquished. Executive does not by this Release relinquish (a) any right to any vested benefits under
any benefit plans or arrangements maintained by Benchmark or its subsidiaries or affiliates, (b) any right to indemnification under
any applicable directors’ and officers’ liability insurance policy, indemnity agreement, applicable state and federal
law and Benchmark’s articles of incorporation and bylaws, (c) any rights in Executive’s capacity as a securityholder
of Benchmark or (d) Executive’s right to receive the benefits set forth in Sections 7(c) or 7(d) of the
Employment Agreement, as applicable.

 

4.                 
Risk of Mistake of Fact. Executive understands that any of the facts or circumstances that Executive may currently
rely on may later be found, suspected or claimed to be different from the facts and circumstances as Executive now believes them
to be (each, a “Mistake of Fact”). Executive assumes the risk of any Mistake of Fact and agrees that this Release
shall remain effective despite any such Mistake of Fact. Specifically, it is a condition of this Release, and it is Executive’s
intention by signing this Release, that except as expressly set forth herein the release of claims contained in this Release shall
be effective as a bar to each and every claim, whether now known or unknown.

 

5.                 
No Lawsuits, Complaints or Claims. Executive waives his right to file any charge or complaint against Benchmark and/or
any of the Released Parties arising out of his employment or separation from employment or any facts occurring prior to Executive
signing this Release before any federal, state or local court or any federal, state or local administrative agency, except where
such waivers are prohibited by law. By signing this Release, Executive represents that he has not filed any such claims, causes
of action or complaints. Notwithstanding the foregoing, Executive does not waive or release any claim which cannot be validly
waived or released by private agreement. Specifically, nothing in this Release shall prevent Executive from filing a charge or
complaint with, or from participating in, an investigation or proceeding conducted by the U.S. Securities and Exchange Act of 1934
(the “SEC”), EEOC, DFEH or any other federal, state or local agency charged with the enforcement of any employment
laws. However, Executive understands that by signing this Release, Executive waives the right to recover any damages or to receive
other relief in any claim or suit brought by or through the EEOC, the DFEH or any other state or local federal agency on Executive’s
behalf to the fullest extent permitted by law, but expressly excluding any award or other relief available from the SEC. This Release
is not intended to, and shall not be interpreted in any manner that limits or restricts Executive from, exercising any legally
protected whistleblower rights (including pursuant to Rule 21F under the SEC) or receiving an award for information provided to
any government agency under any legally protected whistleblower rights. Executive acknowledges that he has no pending workers’
compensation claims and that this Release is not related in any way to any claim for workers’ compensation benefits, and
that he has no basis for such a claim.

 

    A-2 

     

    

 

6.                 
Adequate Notice. Executive acknowledges that he was given an adequate opportunity to review and consider this Release.

 

7.                 
Consult an Attorney. Executive acknowledges that Benchmark has advised Executive to consult an attorney, at Executive’s
expense, concerning Executive’s rights and the terms of this Release, and that Executive had sufficient time to do so and
did so or voluntarily chose not to do so. Executive’s waivers are knowing, conscious and with full appreciation that at no
time in the future may Executive pursue any of the rights that Executive waived in this Release.

 

8.                 
Right to Revoke. During the seven (7)-day period following the date Executive executes this Release (such period,
the “Revocation Period”), Executive may revoke this Release completely by delivering a letter, personally or
by USPS Certified Mail, to Benchmark’s Corporate Secretary, containing Executive’s revocation of this Release. This
Release shall become effective and irrevocable on the day following the conclusion of the Revocation Period. This Release shall
have no legal effect, and Executive shall not be entitled to the payments and benefits set forth in Section 7(c)(3) or 7(c)(4)
(or the corresponding payments under Section 7(d)) of the Employment Agreement, if revoked as provided herein.

 

IN WITNESS WHEREOF, Executive has executed
and delivered this Release on the date set forth below.

 

Date:

	 	 
	 	Jeffrey Benck

 

    A-3

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