www.connectpositronic.com

The Positronic Employee Incentive Program (EIP) is a program

designed to motivate employees to reach the company's operational

goals. When our team works together toward common goals, they

can be more easily achieved. When operational goals are achieved by

employees participating in the EIP, they are rewarded with additional

payment for their efforts. Continue reading to learn more educational

details about the EIP program.

EMPLOYEE INCENTIVE PROGRAMR e w a r d i n g Y o u f o r O p e r a t i o n a l E x c e l l e n c e

2www.connectpositronic.com

PositronicEmployee Incentive Program

EIP METRICS

EIP metrics are defined by the Executive Team and Site Leaders, at the beginning of each fiscal year (September 1 through August 31), for all locations. The metrics are based on industry standards, historical performance, and customer expectations. Below are the key items in the Positronic EIP Program and the percent payouts received if the metrics are reached.

On Time Delivery (OTD) - pays 15%

Rolled Throughput Yield (RTY) - pays 15%

Defective Parts Per Million (DPPM) - pays 15%

Environmental Health and Safety (EHS) - pays 10%

Assembly Efficiency - pays 15%

Global Profit Target - pays 30%

An Employee Incentive Program, or EIP, is a program designed to motivate employees to reach the company's operational goals. EIP programs are common for manufacturing and are a "win-win" for both the company and the employee. The company achieves its business goals and employees are rewarded with additional payment as well as opportunities for career growth.

At Positronic, our vision is to be a global partner and world-class provider of the best innovative solutions for demanding interconnect applications. This is accomplished by living our values and working as One Positronic - a diverse and unified team committed to a singular vision creating the greatest value for all stakeholders.

All employees contribute to the Positronic EIP, whether directly or indirectly, and when our employees work toward common goals, we build strong relationships and success. The Positronic EIP provides opportunities for all employees to contribute to our vision and the success of the company.

EMPLOYEE INCENTIVE PROGRAM (EIP) OVERVIEW

3 www.connectpositronic.com

PositronicEmployee Incentive Program

HOW TO CONTRIBUTEAll employees can help Positronic reach its EIP goals! There are many ways you can contribute to the company's EIP program and some ways will be more relevant to your particular job function than others. The main thing to remember about our EIP program is that we are all working toward common goals, and by doing your best work, thinking of ways to improve efficiency and remove waste (Lean Manufacturing), and supporting and encouraging others, together we can achieve the goals or even learn from our mistakes if we happen to fall short of a goal.

A few examples of ways you can contribute are given below and you are encouraged to bring new ideas to your supervisor. When we all work toward achieving our goals, we can accomplish great things!

RESOURCESThere are several ways to learn more about the Positronic EIP Program.

� Contact your local Human Resources department to discuss the program.

� Speak with your Supervisor – he/she is availalbe to answer questions and discuss your ideas for improvements.

� Printed materials about the EIP Program are available in the lunchroom at your location. The EIP brochure and an FAQ document provide details about the program.

� Regularly scheduled employee meetings - EIP training and Q&A sessions are often part of the regularly scheduled meetings at each location. Use these meetings to ask questions and learn about the program.

� A training presentation is available for review on the Positronic Intranet site, https://www.connectpositronic.com/en/intranet/.

GLOSSARY Below is a glossary of terms and examples to help you understand the Positronic EIP.

EIP – EIP is an acronym that stands for Employee Incentive Program.

RTY – RTY means Rolled Throughput Yield. It is the probability that a process with more than one step will produce a defect free unit. The goal for operations is to rework as few products as possible.

OTD – OTD refers to On Time Delivery. For the Positronic EIP, the OTD metric measures the On Time Delivery perfornance to our customers. For example,

Positronic needs to ship 1,000 Sales Orders (SOs) in a particular month based on its original committed ship dates, but we only manage to ship 932 SOs per our committed ship dates.

In this case, our OTD percent would be (932 ÷ 1,000) x 100% = 93.2%

DPPM – DPPM is an acronym for Defective Parts Per Million. If we ship 500,000 units of product and there are 37 defective parts, the DPPM would be (37 ÷ 500,000) x 1,000,000 = 74 DPPM.

Global Profitability – measures the profitability of all locations where Positronic operates. It is measured as percent of Operating Income or %OI).

If PIMO has an OI of "x" dollars out of shipment revenue of X, PISAS has an OI of "y" out of shipments of Y and PAPL has an OI of "z" out of shipments of Z, the global profitability would be calculated using this equation: (x+y+z) ÷ (X+Y+Z) x 100%

As an example: (502 + 270 + 707) ÷ (4,801 + 2,514 + 1,848) x 100% = 16.1%

EHS – Manufacturing companies often have Environmental Health and Safety (EHS) programs to ensure employees are safe and continue to learn about best practices for safe work environments through on-going training programs. In addition, EHS helps companies stay compliant with customer and government expectations.

Lean Manufacturing – A systematic method originating in the Japanese manufacturing industry for eliminating waste from processes, which improves efficiency, quality, and profit margins.

Kaizen – A short duration improvement project with a specific goal for improvement. The event is typically led by a facilitator and team members from the focus area who discuss, test, and implement the improved process or methods that allow the company to reach its goal.

FISCAL YEAR CALENDAR

www.connectpositronic.com