Document:

Exhibit 10.3

 EXHIBIT 10.3 
 [FORM OF AGREEMENT] 
 PERFORMANCE-BASED 

RESTRICTED STOCK UNIT AGREEMENT 
 under 
 the 

PHI, INC. LONG-TERM INCENTIVE PLAN 
 EMPLOYEE: 
 AWARD DATE: 
 TOTAL NUMBER OF PERFORMANCE-BASED RSUs: 
 VESTING DATE (subject to satisfaction of performance
condition): March 15, 2015 
 This document (referred to below as the “Agreement”) spells out the terms and
conditions of the performance-based restricted stock units granted by PHI, Inc., a Louisiana corporation (the “Company”), to the individual employee designated above (the “Employee”) pursuant to the PHI, Inc. Long-Term Incentive
Plan (the “Plan”) on and as of the award date designated above. Except as otherwise defined herein, capitalized terms used in this Agreement have the respective meanings set forth in the Plan. The grant of performance-based restricted
stock units hereunder is conditioned on the approval of the Plan by the Company’s shareholders at the 2012 annual meeting of shareholders. If the Plan is not approved at the 2012 annual meeting, the grant shall be void and this Agreement shall
terminate automatically. 
 The parties hereto agree as follows: 
 1. Grant of Performance-Based Restricted Stock Units. Pursuant to the approval and direction of the Compensation Committee of the Company’s Board of Directors (the “Committee”) under
the authority provided in Section 9 of the Plan, the Company hereby grants to the Employee, the number of performance-based restricted stock units specified above (the “Performance-Based RSUs”). Each Performance-Based RSU constitutes
the right to receive one share of Non-Voting Stock in the future, subject to the terms and conditions of the Plan and this Agreement. 
 2. Restrictions. The Performance-Based RSUs may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, whether voluntarily or involuntarily. The Employee shall have no
rights in the shares of Non-Voting Stock underlying the Performance-Based RSUs until the termination of the applicable Period of Restriction (as defined in Section 5 below), subject to attainment of the performance condition set forth in
Section 4 below or as otherwise provided in the Plan or this Agreement. The Employee shall not have any voting rights with respect to the Performance-Based RSUs or the Non-Voting Stock. 

3. Performance-Based RSU Account and Dividend Equivalents. The Company shall maintain an account (the “Account”) on its
books in the name of the Employee. Such Account shall reflect the number of Performance-Based RSUs awarded to the Employee, as such number may be adjusted under the terms of the Plan, as well as any additional Performance-Based RSUs credited as a
result of dividend equivalents, administered as follows: 

 (a) The Account shall be for recordkeeping purposes only, and no assets or other amounts
shall be set aside from the Company’s general assets with respect to such Account. 
 (b) As of each record date with
respect to which a cash dividend is to be paid with respect to shares of Non-Voting Stock, the Company shall credit the Employee’s Account with an equivalent number of Performance-Based RSUs based upon the value of Non-Voting Stock on such
date. 
 (c) If dividends are paid in the form of shares of Non-Voting Stock rather than cash, then the Employee will be credited
with one additional Performance-Based RSU for each share of Non-Voting Stock that would have been received as a dividend had the Employee’s outstanding Performance-Based RSUs been shares of Non-Voting Stock. 

(d) Additional Performance-Based RSUs credited via dividend equivalents shall vest or be forfeited at the same time and on the same terms
as the Performance-Based RSUs to which they relate. 
 4. Performance Condition. Except as otherwise provided in this
Agreement, the Performance-Based RSUs shall not vest as of the vesting date indicated in the introduction to this Agreement unless the average of the Company’s Adjusted EBITDAR as a percentage of Total Revenue for the three-year period
beginning January 1, 2012 and ending December 31, 2014 (the “Performance Period”) equals or exceeds 23.5%. For purposes of this Agreement, the following definitions apply: 

(a) “Adjusted EBITDAR” shall mean earnings before interest, taxes, depreciation, and amortization, and rentals, adjusted for
non-operating items such as gain (loss) on disposition of assets, loss on debt restructuring, goodwill impairment charges, earnings from unconsolidated affiliates, derivatives, marketable securities and foreign currency gains (losses), earnings
(losses) from equity-method investments and reduction in value of equity-method investments. 
 (b) “Total Revenue”
shall mean total revenue excluding any gains on asset sales or non-operating revenue such as interest income. 
 5. Period of
Restriction. Unless otherwise provided in Section 6 or 8 of this Agreement, the Performance-Based RSUs shall become vested as of the vesting date indicated in the introduction to this Agreement, but only if the Company has satisfied the
performance condition set forth in Section 4 and the Employee has not terminated employment with the Company or a Subsidiary prior to the end of the Performance Period. The period prior to the vesting date with respect to each Performance-Based
RSU is referred to as the “Period of Restriction.” 
 6. Vesting upon Termination due to Disability or Death.
If, during the Performance Period, the Employee terminates employment with the Company (or a Subsidiary of the Company if the Employee is then in the employ of such Subsidiary) by reason of Disability (as defined in the Company’s long-term
disability policy) or death, then the Performance-Based RSUs shall become fully vested as of the date of termination of employment, shall no longer be subject to satisfaction of the performance condition set forth in Section 4 of this Agreement
and shall cease to be subject to the Period of Restriction set forth in Section 5 of this Agreement. 

  
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 7. Forfeiture upon Termination due to Reason Other than Disability or Death. If,
during the Performance Period, the Employee’s employment with the Company (or a Subsidiary of the Company if the Employee is then in the employ of such Subsidiary) terminates for a reason other than the Employee’s Disability or death, then
the Employee shall forfeit the Performance-Based RSUs on the date of such termination of employment. 
 8. Vesting upon Change
of Control. In the event of a Change of Control of the Company, as defined in Section 12.2 of the Plan, pursuant to Section 12.3 of the Plan the Performance-Based RSUs shall vest, shall no longer be subject to satisfaction of the
performance condition set forth in Section 4 of this Agreement and shall cease to be subject to the Period of Restriction set forth in Section 5 of this Agreement. 
 9. Settlement of Vested Performance-Based RSUs. Except as otherwise provided below in connection with a Change of Control, as promptly as practicable after the Performance-Based RSUs cease to be
subject to a Period of Restriction, but no later than 30 days following such date, the Company shall transfer to the Employee one share of Non-Voting Stock for each Performance-Based RSU becoming vested at such time. The Employee shall have no
rights as a stockholder with respect to the Performance-Based RSUs awarded hereunder prior to the date of issuance to the Employee of a certificate or certificates for the underlying shares of Non-Voting Stock or book entry evidence of ownership.
Certificates for the shares of Non-Voting Stock shall be issued and delivered to the Employee, the Employee’s legal representative, or a brokerage account for the benefit of the Employee, as the case may be, or such shares may be held in book
entry form. 
 10. Settlement Following Change of Control. In connection with or after the occurrence of a Change of
Control, as defined in Section 12.2 of the Plan, settlement of the Performance-Based RSUs shall occur upon or as promptly as practicable following the Change of Control but no later than 30 days following the Change of Control; provided,
however, that if the Performance-Based RSUs are subject to Internal Revenue Code Section 409A and the regulations thereunder (“Section 409A”) and 
 (a) if the Change of Control is not also considered a “change in control” within the meaning of Section 409A, then the Performance-Based RSUs shall become vested on the date of the Change
of Control, but settlement shall not occur until the date settlement would occur if the Period of Restriction had ended on the vesting date indicated in the introduction to the Agreement and as provided in Section 9; and 

(b) notwithstanding the terms of the Plan, the Committee cannot take any action with respect to such settlement that would result in
settlement occurring other than as provided in this Section 10, unless otherwise in compliance with Section 409A. 

11. Adjustment in Capitalization. In the event of any change in the Common Stock of the Company, the provisions of
Section 13.5 of the Plan shall govern such that the number of Performance-Based RSUs subject to this Agreement shall be equitably adjusted by the Committee. 

  
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 12. Tax Withholding. 

(a) Whenever a Period of Restriction applicable to the Employee’s rights to the Performance-Based RSUs lapses or another taxable
event occurs, the Company or its agent shall notify the Employee of the related amount of tax that must be withheld under applicable tax laws. Regardless of any action the Company, any Subsidiary of the Company, or the Employee’s employer takes
or does not take with respect to any or all income tax, social security, payroll tax, payment on account or other tax-related withholding (“Tax”) that the Employee is required to bear pursuant to all applicable laws, the Employee hereby
acknowledges and agrees that the ultimate liability for all Tax is and remains the responsibility of the Employee. 
 (b) Prior
to receipt of any shares that correspond to Performance-Based RSUs that vest in accordance with this Agreement, the Employee shall pay or make adequate arrangements satisfactory to the Company and/or any Subsidiary of the Company to satisfy all
withholding and payment on account obligations of the Company and/or any Subsidiary of the Company. Finally, the Employee agrees to pay the Company or any Subsidiary of the Company any amount of any Tax that the Company or any Subsidiary of the
Company may be required to withhold as a result of the Employee’s participation in the Plan that cannot be satisfied. The Company may refuse to deliver shares of Non-Voting Stock if the Employee fails to comply with its obligations in
connection with the tax as described in this section. 
 (c) The Employee may elect to have shares of Non-Voting Stock withheld
from the settlement to satisfy the Employee’s withholding tax obligation as described in Section 13.6 of the Plan only with the prior approval of the Committee. 
 (d) The Company advises the Employee to consult his or her legal and/or tax advisors with respect to the tax consequences for the Employee under the Plan. 

13. No Employment or Compensation Rights. Participation in the Plan is subject to all of the terms and conditions of the Plan and
this Agreement. This Agreement shall not confer upon the Employee any right to continuation of employment by the Company or its Subsidiaries, nor shall this Agreement interfere in any way with the Company’s or its Subsidiaries’ right to
terminate Employee’s employment at any time. Neither the Plan nor this Agreement forms any part of any contract of employment between the Company or any Subsidiary and the Employee, and neither the Plan nor this Agreement confers on the
Employee any legal or equitable rights (other than those related to the Performance-Based RSU award) against the Company or any Subsidiary or directly or indirectly gives rise to any cause of action in law or in equity against the Company or any
Subsidiary. 
 14. Plan Terms and Committee Authority. This Agreement and the rights of the Employee hereunder are subject
to all of the terms and conditions of the Plan, as it may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized
to 

  
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administer, construe and make all determinations necessary or appropriate for the administration of the Plan and this Agreement, all of which shall be binding upon Employee. Any inconsistency
between this Agreement and the Plan shall be resolved in favor of the Plan. The Employee hereby acknowledges receipt of a copy of the Plan and this Agreement. 
 15. Amendment or Modification; Waiver. No provision of this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing, signed by the Employee and by a duly
authorized officer of the Company. No waiver of any condition or provision of this Agreement shall be deemed a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time. 

16. Governing Law and Jurisdiction. This Agreement is governed by the substantive and procedural laws of the state of Louisiana.
The Employee and the Company shall submit to the exclusive jurisdiction of, and venue in, the courts in Louisiana in any dispute relating to this Agreement. 
 17. Section 409A. It is intended that the payments and benefits provided under this Agreement will comply with the requirements of Section 409A or an exemption therefrom. The Agreement
shall be interpreted, construed, administered, and governed in a manner that effects such intent. No acceleration of the settlement of Performance-Based RSUs shall be permitted unless permitted under Section 409A. 

18. Recovery of Compensation. The Employee acknowledges and agrees that the compensation awarded through this Agreement shall be
recoverable by the Company if required by federal law or requirements of applicable stock exchanges. 

  
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 IN WITNESS WHEREOF, this Agreement has been executed by a duly authorized officer of the
Company, and the Employee, to evidence his consent and approval of all the terms of this Agreement, has duly executed this Agreement, as of the Award Date specified on page one of this Agreement. 

 

			
	COMPANY:
	
	PHI, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	
	EMPLOYEE:
	
	 
	Printed Name	 	
	
	 
	Signature	 	

  
 6Employment Offer Letter between Registrant and John Marchetti

 Exhibit 10.1 

 

			
		 	 

  
 Fabrinet USA
Inc.
 4104-24th Street, Suite 345
 San Francisco, CA 94114

 December 30, 2011 
 Mr. John Marchetti 
 Dear John, 

We are pleased to extend an offer of employment to you for the position of Chief Strategy Officer for Fabrinet USA, Inc. (“FUSA”
or the “Company”). 
 You will report to Mr. David T. Mitchell, Chief Executive Officer (CEO) of Fabrinet
and your duties will generally consist of those associated with developing and implementing Fabrinet’s future growth strategy, crafting the messaging of that strategy for investors and analysts with an interest in Fabrinet and advising the CEO.
While you are employed by FUSA, you will devote substantially all of your business time and efforts to the performance of your duties and use your best efforts in such endeavors. Acceptance of this offer constitutes your representation that your
execution of this agreement and performance of the requirements of this position will not be in violation of any other agreement to which you are a party. 
 Your annual base salary will be $375,000 to be paid on a semi-monthly basis on or about the 15th and 30th of each month. Subject to the Board’s approval, you will be eligible to participate in
Fabrinet’s Executive Incentive Plan. Any target bonus, or portion thereof, will be paid as soon as practicable after the Compensation Committee of the Board of Directors determines that the target bonus (or relevant portion thereof) has been
earned, but in no event shall any such target bonus be paid later than sixty (60) days following the applicable target bonus performance period. Receipt of any target bonus is contingent upon your continued employment with FUSA through the date
the bonus is paid. 
 In addition, you will be eligible to participate in FUSA’s Employee Benefits Plan, which includes
one-hundred twenty (120) hours paid time off (PTO), health care (medical, dental & vision for you and your eligible dependents), 401(k) plan and Group Term Life insurance. All reasonable travel and home office expenses will be
reimbursable via monthly expense reporting pursuant to FUSA’s policies and procedures, but in no event will any reimbursement occur later than the fifteenth (15) day of the third month following the later of (i) the close of the
Company’s fiscal year in which such expenses are incurred or (ii) the calendar year in which such expenses are incurred. You will be eligible to receive a car allowance of $1,000 per month, provided that you are an employee of FUSA on the
date the car allowance is paid to you each month. 
 Upon commencement of your employment we will recommend to our Board of
Directors that you be granted a long-term incentive equity award with a compensation value of $400,000, which may include restricted stock and options to purchase ordinary shares in Fabrinet, per the terms of our 2010 Performance Incentive Plan
(“Plan”). This award is subject to Board approval, including the number of shares granted and the exercise price, with such exercise price equal to the fair market value of an ordinary share of Fabrinet on the date of grant. Shares granted
under our Plan will vest and become exercisable over a four (4) year period as follows: 25% vesting upon the one (1) year anniversary of the option grant date and 1/48 of the Shares vesting each month of the following thirty-six
(36) months. Vesting is conditioned on your continued service to FUSA on each vesting date. 

 This offer is not to be considered a contract guaranteeing employment for any specific
duration. Employment with FUSA is on an at-will basis. Thus you are free to terminate your employment for any reason at any time with or without prior notice. Similarly, the Company may terminate the employment relationship with or without good
cause or notice. However, in the event your employment is terminated without good cause, you will receive (A) a lump sum payment of severance payable within ten (10) business days from the date of your termination of employment, equal to
(i) twelve (12) months of your then present base salary, and (ii) any earned bonus as of the date of your termination from employment; and (B) if you timely elect continuation coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), as amended, or a similar state program, reimbursement of the costs to continue family medical coverage for the first twelve (12) months following your termination of employment. 

For purposes of the above paragraph, “good cause” means (i) an act of dishonesty made by you in connection with your
responsibilities as an employee; (ii) your conviction of or plea of nolo contendere to a felony, or any crime involving fraud, embezzlement or any other act of moral turpitude; (iii) your gross misconduct; (iv) your unauthorized use
or disclosure of any proprietary information or trade secrets of the Company or any other party to whom you owe an obligation of nondisclosure as a result of your relationship with the Company; (v) your willful breach of any obligations under
any written agreement or covenant with the Company; or (vi) your continued failure to perform your employment duties after you have received a written demand of performance from the Company which specifically sets forth the factual basis for
the Company’s belief that you have not substantially performed your duties and have failed to cure such non-performance to the Company’s satisfaction within thirty (30) days after receipt of such notice. 

Notwithstanding anything to the contrary in this letter, no Deferred Compensation Separation Benefits (as defined below) will be
considered due or payable until the Employee has incurred a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations and any guidance promulgated
thereunder (together, “Section 409A”). 
 In addition, if Fabrinet continues to be a public company with its
securities are listed on a stock exchange at the time of your involuntary termination of employment, and at the time of such termination it is determined that you are a “specified employee” within the meaning of Section 409A, the
bonus payable to you, pursuant to this letter, when considered together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation
Benefits”) that are payable within the first six (6) months following your termination of employment, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the
date of your termination of employment. Any amount paid under this letter that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred
Compensation Separation Benefits for purposes of this paragraph. In addition, any amount paid under this letter that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of
the Treasury Regulations that does not exceed the specified limit in Section 1.409A-1(b)(9)(iii)(A) of the Treasury Regulations will not constitute Deferred Compensation Separation Benefits for purposes of this paragraph. 

The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the payments and benefits to
be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The parties to this letter agree to work together in good faith to consider amendments to this
letter, if required, and to take such reasonable actions, which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to you under Section 409A. 

  
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 Prior to your start date we will provide additional information about general employment
conditions including Company policies, benefits programs, completion of employment forms and drug screening tests. To fulfill federal identification requirements, you will need to provide documentation to support your identity and eligibility to
work in the United States. The types of acceptable documentation are listed on the Form I-9 of the Immigration and Naturalization Service. Also, it is the policy of FUSA to maintain a workplace that is free of drugs and alcohol. 

If you are in agreement with the provisions of this letter detailing the initial terms of your employment with FUSA, please indicate your
acceptance by signing below and identifying your intended start date. 
 We look forward to you joining our organization.

 Sincerely, 
  

	
	 /s/ Mark J. Schwartz

	Mark J. Schwartz
	President
	Fabrinet USA, Inc.

 I accept the offer of employment with FUSA under the terms described in this letter. I acknowledge that
this letter is the complete agreement concerning my employment and supersedes all prior or concurrent agreements and representations and may not be modified in any way except in a writing executed by an authorized agent of FUSA. 

 

	
	 /s/ John Marchetti

	John Marchetti
	
	 1/1/12

	Date
	
	 16 January 2012

	Start Date

  
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