Document:

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                                                                   Exhibit 10.2

                              SOLECTRON CORPORATION

                          EMPLOYEE STOCK PURCHASE PLAN

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                                TABLE OF CONTENTS

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<Caption>
                                                                           PAGE
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<S>           <C>
SECTION 1        PURPOSE....................................................1
SECTION 2        DEFINITIONS................................................1
        2.1      "1934 Act".................................................1
        2.2      "Board"....................................................1
        2.3      "Code".....................................................1
        2.4      "Committee"................................................1
        2.5      "Common Stock".............................................1
        2.6      "Company"..................................................1
        2.7      "Compensation".............................................1
        2.8      "Eligible Employee"........................................1
        2.9      "Employee".................................................2
        2.10     "Employer" or "Employers"..................................2
        2.11     "Enrollment Date"..........................................2
        2.12     "Grant Date"...............................................2
        2.13     "Participant"..............................................2
        2.14     "Plan".....................................................2
        2.15     "Purchase Date"............................................2
        2.16     "Subsidiary"...............................................2
SECTION 3        SHARES SUBJECT TO THE PLAN.................................2
        3.1      Number Available...........................................2
        3.2      Adjustments................................................2
SECTION 4        ENROLLMENT.................................................3
        4.1      Participation..............................................3
        4.2      Payroll Withholding........................................3
SECTION 5        OPTIONS TO PURCHASE COMMON STOCK...........................3
        5.1      Grant of Option............................................3
        5.2      Duration of Option.........................................3
        5.3      Number of Shares Subject to Option.........................3
        5.4      Other Terms and Conditions.................................3
SECTION 6        PURCHASE OF SHARES.........................................4
        6.1      Exercise of Option.........................................4
        6.2      Delivery of Shares.........................................4
        6.3      Exhaustion of Shares.......................................4
SECTION 7        WITHDRAWAL.................................................4
        7.1      Withdrawal.................................................4
SECTION 8        CESSATION OF PARTICIPATION.................................5
        8.1      Termination of Status as Eligible Employee.................5
SECTION 9        DESIGNATION OF BENEFICIARY.................................5
        9.1      Designation................................................5
        9.2      Changes....................................................5
        9.3      Failed Designations........................................5
SECTION 10       ADMINISTRATION.............................................5
        10.1     Plan Administrator.........................................5
</TABLE>

                                      -I-
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                               TABLE OF CONTENTS
                                  (CONTINUED)

<Table>
<Caption>
                                                                          PAGE
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<S>          <C>
        10.2     Actions by Committee.......................................5
        10.3     Powers of Committee........................................5
        10.4     Decisions of Committee.....................................6
        10.5     Administrative Expenses....................................6
        10.6     Eligibility to Participate.................................6
        10.7     Indemnification............................................6
SECTION 11       AMENDMENT, TERMINATION, AND DURATION.......................7
        11.1     Amendment, Suspension, or Termination......................7
        11.2     Duration of the Plan.......................................7
SECTION 12       GENERAL PROVISIONS.........................................7
        12.1     Participation by Subsidiaries..............................7
        12.2     Inalienability.............................................7
        12.3     Severability...............................................7
        12.4     Requirements of Law........................................7
        12.5     Compliance with Rule 16b-3.................................7
        12.6     No Enlargement of Employment Rights........................8
        12.7     Apportionment of Costs and Duties..........................8
        12.8     Construction and Applicable Law............................8
        12.9     Captions...................................................8
        12.10    EXECUTION..................................................8

</Table>

                                      -II-
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                              SOLECTRON CORPORATION

                        2003 EMPLOYEE STOCK PURCHASE PLAN

                                    SECTION 1
                                     PURPOSE

      Solectron Corporation hereby establishes Solectron Corporation 2003
Employee Stock Purchase Plan, effective as of January 15, 2003, in order to
provide eligible employees of the Company and its participating Affiliates with
the opportunity to purchase Common Stock through payroll deductions or, if
payroll deductions are not permitted under local laws, through other means as
specified by the Committee. The Plan is intended to qualify as a Code Section
423(b) Plan, although the Company makes no undertaking nor representation to
maintain such qualification. In addition, this Plan document authorizes the
grant of options under a Non-423(b) Plan which do not qualify under Section
423(b) of the Code pursuant to rules, procedures or sub-plans adopted by the
Board (or its designate) designed to achieve desired tax or other objectives.

                                    SECTION 2
                                   DEFINITIONS

      2.1 "1934 Act" means the Securities Exchange Act of 1934, as amended.
Reference to a specific Section of the 1934 Act or regulation thereunder shall
include such Section or regulation, any valid regulation promulgated under such
Section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such Section or regulation.

      2.2 "Affiliate" means any (i) Subsidiary, and (ii) any other entity other
than the Company in an unbroken chain of entities beginning with the Company if,
at the time of the granting of the option, each of the entities, other than the
last entity in the unbroken chain, owns or controls 50 percent or more of the
total ownership interest in one of the other entities in such chain.

      2.3 "Board" means the Board of Directors of the Company.

      2.4 "Code" means the Internal Revenue Code of 1986, as amended. Reference
to a specific Section of the Code or regulation thereunder shall include such
Section or regulation, any valid regulation promulgated under such Section, and
any comparable provision of any future legislation or regulation amending,
supplementing or superseding such Section or regulation.

      2.5 "Code Section 423(b) Plan" means an employee stock purchase plan which
is designed to meet the requirements set forth in Section 423(b) of the Code, as
amended.

      2.6 "Committee" shall mean the committee appointed by the Board to
administer the Plan. Any member of the Committee may resign at any time by
notice in writing mailed or delivered to the Secretary of the Company. As of the
effective date of the Plan, the Plan shall be administered by the Compensation
Committee of the Board.

      2.7 "Common Stock" means the common stock of the Company.

      2.8 "Company" means Solectron Corporation, a Delaware corporation.

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      2.9 "Compensation" means a Participant's base salary or regular wages
(including sick pay and vacation pay) and any sales commissions. The Committee,
in its discretion, may (on a uniform and nondiscriminatory basis) establish a
different definition of Compensation prior to an Enrollment Date for all options
to be granted on such Enrollment Date.

      2.10 "Eligible Employee" means every Employee of an Employer, except (a)
any Employee who immediately after the grant of an option under the Plan, would
own stock and/or hold outstanding options to purchase stock possessing five
percent (5%) or more of the total combined voting power or value of all classes
of stock of the Company or of any Affiliate of the Company (including stock
attributed to such Employee pursuant to Section 424(d) of the Code), or (b) as
provided in this Section 2.8. The Committee, in its discretion, from time to
time may, prior to an Enrollment Date for all options to be granted on such
Enrollment Date, determine (on a uniform and nondiscriminatory basis) that an
Employee shall not be an Eligible Employee if he or she: (1) has not completed
at least two years of service since his or her last hire date (or such lesser
period of time as may be determined by the Committee in its discretion), (2)
customarily works not more than 20 hours per week (or such lesser period of time
as may be determined by the Committee in its discretion), (3) customarily works
not more than 5 months per calendar year (or such lesser period of time as may
be determined by the Committee in its discretion), (4) is an officer or other
manager, or (5) is a highly compensated employee under Section 414(q) of the
Code, provided the exclusion of Employees in such categories is not prohibited
under applicable local law. An Employee who otherwise is an Eligible Employee
shall be treated as continuing to be such while the Employee is on sick leave or
other leave of absence approved by the Employer, except that if the period of
leave exceeds ninety days and the Employee's right to reemployment is not
guaranteed by statute or contract, he or she shall cease to be an Eligible
Employee on the 91st day of such leave.

      2.11 "Employee" means an individual who is a common-law employee of any
Employer as reflected on the payroll records of the Employer on the Enrollment
Date. With respect to a particular Participant, Employer means the Company or
Affiliate (as the case may be) which directly employs the Participant.

      2.12 "Employer" or "Employers" means any one or all of the Company and
those Affiliates which, with the consent of the Board or the Committee, have
adopted the Plan. In the event the Employer is not a Subsidiary, its Employees
shall participate in the Non-423(b) Plan.

      2.13 "Enrollment Date" means such dates as may be determined by the
Committee (in its discretion and on a uniform and nondiscriminatory basis) from
time to time.

      2.14 "Grant Date" means any date on which a Participant is granted an
option under the Plan.

      2.15 "Non-423(b) Plan" means an employee stock purchase plan which does
not meet the requirements set forth in Section 423(b) of the Code, as amended.

      2.16 "Participant" means an Eligible Employee who (a) has become a
Participant in the Plan pursuant to Section 4.1 and (b) has not ceased to be a
Participant pursuant to Section 8 or Section 9.

      2.17 "Plan" means Solectron Corporation Employee Stock Purchase Plan, as
set forth in this instrument and as hereafter amended from time to time, which
includes (i) a Code Section 423(b) Plan, and (ii) a Non-423(b) Plan.

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      2.18 "Purchase Date" means such dates as may be determined by the
Committee (in its discretion and on a uniform and nondiscriminatory basis) from
time to time prior to an Enrollment Date for all options to be granted on such
Enrollment Date.

      2.19 "Subsidiary" means any corporation in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain then owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

                                    SECTION 3
                           SHARES SUBJECT TO THE PLAN

      3.1 Number Available. A maximum of 20,000,000 shares of Common Stock shall
be available for issuance pursuant to the Plan. Shares sold under the Plan may
be newly issued shares or treasury shares.

      3.2 Adjustments. In the event of any reorganization, recapitalization,
stock split, reverse stock split, stock dividend, combination of shares, merger,
consolidation, offering of rights or other similar change in the capital
structure of the Company, the Committee may make such adjustment, if any, as it
deems appropriate in its sole discretion in the number, kind and purchase price
of the shares available for purchase under the Plan and in the maximum number of
shares subject to any option under the Plan.

                                    SECTION 4
                                   ENROLLMENT

      4.1 Participation. Each Eligible Employee may elect to become a
Participant by enrolling or re-enrolling in the Plan effective as of any
Enrollment Date. In order to enroll, an Eligible Employee must complete, sign
and submit to the Company an enrollment form in such form, manner and by such
deadline as may be specified by the Committee from time to time (in its
discretion and on a nondiscriminatory basis). The Committee may prescribe
electronic enrollment procedures. Any Participant whose option expires and who
has not withdrawn from the Plan automatically will be re-enrolled in the Plan on
the Enrollment Date immediately following the Purchase Date on which his or her
option expires.

      4.2 Payroll Withholding and Contribution. On his or her enrollment form,
each Participant must elect to make Plan contributions via payroll withholding
from his or her Compensation or, if payroll withholding is not permitted under
local laws, via such other means as specified by the Committee. Pursuant to such
procedures as the Committee may specify from time to time, a Participant may
elect to have withholding equal to or otherwise contribute a whole percentage
from 1% to 20% (or such lesser percentage that the Committee may establish from
time to time for all options to be granted on any Enrollment Date). If permitted
by the Committee, a Participant instead may elect to have a specific amount
withheld or to contribute a specific amount, in dollars or in the applicable
local currency (subject to such uniform and nondiscriminatory rules as the
Committee in its discretion may specify). A Participant may elect to increase or
decrease his or her rate of payroll withholding or contributions by submitting a
new enrollment election in accordance with such procedures as may be established
by the Committee from time to time. A Participant may stop his or her payroll
withholding or contributions by submitting a new enrollment form in accordance
with such procedures as may be established by the Committee from time to time.
In order to be effective as of a specific date, an enrollment election must be
received by the Company no later than the deadline specified by the Committee,
in its discretion and on a nondiscriminatory basis, from time to time. Any
Participant who is automatically re-enrolled in the Plan will be deemed to have
elected to continue his or her payroll withholding or contributions at the
percentage last elected by the Participant.

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<PAGE>

                                    SECTION 5
                        OPTIONS TO PURCHASE COMMON STOCK

      5.1 Grant of Option. On each Enrollment Date on which the Participant
enrolls or re-enrolls in the Plan, he or she shall be granted an option to
purchase shares of Common Stock.

      5.2 Duration of Option. Each option granted under the Plan shall expire on
the earliest to occur of (a) the completion of the purchase of shares on the
last Purchase Date occurring within 27 months of the Grant Date of such option,
(b) such shorter option period as may be established by the Committee from time
to time prior to an Enrollment Date for all options to be granted on such
Enrollment Date, or (c) the date on which the Participant ceases to be such for
any reason. Until otherwise determined by the Committee for all options to be
granted on an Enrollment Date, the period referred to in clause (b) in the
preceding sentence shall mean the period from the applicable Enrollment Date
through the last business day prior to the Enrollment Date that is approximately
24 months later.

      5.3 Number of Shares Subject to Option. The maximum number of shares
available for purchase by each Participant under the option will be established
by the Committee from time to time prior to an Enrollment Date for all options
to be granted on such Enrollment Date. In addition and notwithstanding the
preceding, to the extent required under Section 423(b) of the Code, an option
(taken together with all other options then outstanding under this Plan and
under all other similar employee stock purchase plans of the Employers) shall
not give the Participant the right to purchase shares at a rate which accrues in
excess of $25,000 of fair market value at the applicable Grant Dates of such
shares in any calendar year during which such Participant is enrolled in the
Plan at any time.

      5.4 Other Terms and Conditions. Each option shall be subject to the
following additional terms and conditions:

            (a) payment for shares purchased under the option shall be made only
      through payroll withholding under Section 4.2, unless payroll withholding
      is not permitted under local laws as determined by the Committee, in which
      case the Participant may contribute by such other means as specified by
      the Committee;

            (b) purchase of shares upon exercise of the option will be
      accomplished only in accordance with Section 6.1;

            (c) the price per share under the option will be determined as
      provided in Section 6.1; and

            (d) the option in all respects shall be subject to such other terms
      and conditions (applied on a uniform and nondiscriminatory basis), as the
      Committee shall determine from time to time in its discretion.

                                    SECTION 6
                               PURCHASE OF SHARES

      6.1 Exercise of Option. Subject to Section 6.2, on each Purchase Date, the
funds then credited to each Participant's account shall be used to purchase
whole shares of Common Stock. Any cash remaining after whole shares of Common
Stock have been purchased shall be rolled over and used to purchase shares on
the next Purchase Date (unless the individual no longer is a Participant, in
which case the cash shall be refunded to him or her). The price per

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<PAGE>

Share of the Shares purchased under any option granted under the Plan shall be
eighty-five percent (85%) of the lower of:

            (a) the closing price per Share on the Grant Date for such option on
      the New York Stock Exchange; or

            (b) the closing price per Share on the Purchase Date on the New York
      Stock Exchange.

      6.2 Delivery of Shares. As directed by the Committee in its sole
discretion, shares purchased on any Purchase Date shall be delivered directly to
the Participant or to a custodian or broker (if any) designated by the Committee
to hold shares for the benefit of the Participants. As determined by the
Committee from time to time, such shares shall be delivered as physical
certificates or by means of a book entry system.

      6.3 Exhaustion of Shares. If at any time the shares available under the
Plan are over-enrolled, enrollments shall be reduced to eliminate the
over-enrollment, as the Committee determines (in a uniform and nondiscriminatory
manner). For example, the Committee may determine that such reduction method
shall be "bottom up", with the result that all option exercises for one share
shall be satisfied first, followed by all exercises for two shares, and so on,
until all available shares have been exhausted. Any funds that, due to
over-enrollment, cannot be applied to the purchase of whole shares shall be
refunded to the Participants (without interest thereon, except as otherwise
required under local laws).

                                    SECTION 7
                                   WITHDRAWAL

      7.1 Withdrawal. A Participant may withdraw from the Plan by submitting a
withdrawal form to the Company in such form and manner as the Committee may
specify. A withdrawal will be effective only if it is received by the Company by
the deadline specified by the Committee (in its discretion and on a uniform and
nondiscriminatory basis) from time to time. When a withdrawal becomes effective,
the Participant's payroll withholding or contributions shall cease and all
amounts then credited to the Participant's account shall be distributed to him
or her (without interest thereon, except as otherwise required under local
laws).

                                    SECTION 8
                           CESSATION OF PARTICIPATION

      8.1 Termination of Status as Eligible Employee. A Participant shall cease
to be a Participant immediately upon the cessation of his or her status as an
Eligible Employee (for example, because of his or her termination of employment
from all Employers for any reason). As soon as practicable after such cessation,
the Participant's payroll contributions shall cease and all amounts then
credited to the Participant's account shall be distributed to him or her
(without interest thereon, except as otherwise required under local laws).

                                    SECTION 9
                           DESIGNATION OF BENEFICIARY

      9.1 Designation. Each Participant may, pursuant to such uniform and
nondiscriminatory procedures as the Committee may specify from time to time,
designate one or more Beneficiaries to receive any cash amounts credited to the
Participant's account at the time of his or her death. Notwithstanding any
contrary provision of this Section 9, Sections 9.1 and

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<PAGE>

9.2 shall be operative only after (and for so long as) the Committee determines
(on a uniform and nondiscriminatory basis) to permit the designation of
Beneficiaries.

      9.2 Changes. A Participant may designate different Beneficiaries (or may
revoke a prior Beneficiary designation) at any time by delivering a new
designation (or revocation of a prior designation) in like manner. Any
designation or revocation shall be effective only if it is received by the
Committee. However, when so received, the designation or revocation shall be
effective as of the date the designation or revocation is executed (whether or
not the Participant still is living), but without prejudice to the Committee on
account of any payment made before the change is recorded. The last effective
designation received by the Committee shall supersede all prior designations.

      9.3 Failed Designations. If a Participant dies without having effectively
designated a Beneficiary, or if no Beneficiary survives the Participant, the
cash balance in the Participant's account shall be payable to his or her estate.

                                   SECTION 10
                                 ADMINISTRATION

      10.1 Plan Administrator. The Plan shall be administered by the Committee.
The Committee shall have the authority to control and manage the operation and
administration of the Plan.

      10.2 Actions by Committee. Each decision of a majority of the members of
the Committee then in office shall constitute the final and binding act of the
Committee. The Committee may act with or without a meeting being called or held
and shall keep minutes of all meetings held and a record of all actions taken by
written consent.

      10.3 Powers of Committee. The Committee shall have all powers and
discretion necessary or appropriate to supervise the administration of the Plan
and to control its operation in accordance with its terms, including, but not by
way of limitation, the following discretionary powers:

            (a) To interpret and determine the meaning and validity of the
      provisions of the Plan and the options and to determine any question
      arising under, or in connection with, the administration, operation or
      validity of the Plan or the options;

            (b) To determine any and all considerations affecting the
      eligibility of any employee to become a Participant or to remain a
      Participant in the Plan;

            (c) To cause an account or accounts to be maintained for each
      Participant;

            (d) To determine the time or times when, and the number of shares
      for which, options shall be granted;

            (e) To establish and revise an accounting method or formula for the
      Plan;

            (f) To designate a custodian or broker to receive shares purchased
      under the Plan and to determine the manner and form in which shares are to
      be delivered to the designated custodian or broker;

            (g) To determine the status and rights of Participants and their
      Beneficiaries or estates;

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<PAGE>

            (h) To employ such brokers, counsel, agents and advisers, and to
      obtain such broker, legal, clerical and other services, as it may deem
      necessary or appropriate in carrying out the provisions of the Plan;

            (i) To establish, from time to time, rules for the performance of
      its powers and duties and for the administration of the Plan;

            (j) To adopt such procedures and subplans as are necessary or
      appropriate to permit participation in the Plan by employees who are
      foreign nationals or employed outside of the United States or to
      facilitate legal, tax or regulatory compliance outside the United States;
      and

            (k) To delegate to any one or more of its members or to any other
      person (including, but not limited to, employees of any Employer)
      severally or jointly, the authority to perform for and on behalf of the
      Committee one or more of the functions of the Committee under the Plan.

      10.4 Decisions of Committee. All actions, interpretations, and decisions
of the Committee shall be made in the sole discretion of the Committee and shall
be conclusive and binding on all persons, and shall be given the maximum
deference permitted by law.

      10.5 Administrative Expenses. All expenses incurred in the administration
of the Plan by the Committee, or otherwise, including legal fees and expenses,
shall be paid and borne by the Employers, except any stamp duties or transfer
taxes applicable to the purchase of shares may be charged to the account of each
Participant. Any brokerage fees for the purchase of shares by a Participant
shall be paid by the Company, but fees and taxes (including brokerage fees) for
the transfer, sale or resale of shares by a Participant, or the issuance of
physical share certificates, shall be borne solely by the Participant.

      10.6 Eligibility to Participate. No member of the Committee who is also an
employee of an Employer shall be excluded from participating in the Plan if
otherwise eligible, but he or she shall not be entitled, as a member of the
Committee, to act or pass upon any matters pertaining specifically to his or her
own account under the Plan.

      10.7 Indemnification. Each of the Employers shall, and hereby does,
indemnify and hold harmless the members of the Committee and the Board, from and
against any and all losses, claims, damages or liabilities (including attorneys'
fees and amounts paid, with the approval of the Board or the Committee, in
settlement of any claim) arising out of or resulting from the implementation of
a duty, act or decision with respect to the Plan, so long as such duty, act or
decision does not involve gross negligence or willful misconduct on the part of
any such individual.

                                   SECTION 11
                      AMENDMENT, TERMINATION, AND DURATION

      11.1 Amendment, Suspension, or Termination. The Board or the Committee, in
its sole discretion, may amend or terminate the Plan, or any part thereof, at
any time and for any reason. If the Plan is terminated, the Board or the
Committee, in its discretion, may elect to terminate all outstanding options
either immediately or upon completion of the purchase of shares on the next
Purchase Date (which, notwithstanding Section 2.15, may be sooner than
originally scheduled, if determined by the Board or the Committee in its
discretion), or may elect to permit options to expire in accordance with their
terms (and participation to continue through such expiration dates). If the
options are terminated prior to expiration, all amounts then credited to
Participants' accounts which have not been used to purchase shares shall be
returned to the

                                       7
<PAGE>

Participants (without interest thereon, except as otherwise required under local
laws) as soon as administratively practicable.

      11.2 Duration of the Plan. The Plan shall commence on the date specified
herein, and subject to Section 11.1 (regarding the Board's and the Committee's
right to amend or terminate the Plan), shall remain in effect thereafter.

                                   SECTION 12
                               GENERAL PROVISIONS

      12.1 Participation by Affiliates. One or more Affiliates of the Company
may become participating Employers by adopting the Plan and obtaining approval
for such adoption from the Board or the Committee. By adopting the Plan, an
Affiliate shall be deemed to agree to all of its terms, including (but not
limited to) the provisions granting exclusive authority (a) to the Board and the
Committee to amend the Plan, and (b) to the Committee to administer and
interpret the Plan. An Employer may terminate its participation in the Plan at
any time.

      12.2 Inalienability. In no event may either a Participant, a former
Participant or his or her Beneficiary, spouse or estate sell, transfer,
anticipate, assign, hypothecate, or otherwise dispose of any right or interest
under the Plan; and such rights and interests shall not at any time be subject
to the claims of creditors nor be liable to attachment, execution or other legal
process. Accordingly, for example, a Participant's interest in the Plan is not
transferable pursuant to a domestic relations order.

      12.3 Severability. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

      12.4 Requirements of Law. The granting of options and the issuance of
shares shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or securities exchanges as the
Committee may determine are necessary or appropriate.

      12.5 Compliance with Rule 16b-3. Any transactions under this Plan with
respect to officers (as defined in Rule 16a-1 promulgated under the 1934 Act)
are intended to comply with all applicable conditions of Rule 16b-3. To the
extent any provision of the Plan or action by the Committee fails to so comply,
it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee. Notwithstanding any contrary provision of the Plan,
if the Committee specifically determines that compliance with Rule 16b-3 no
longer is required, all references in the Plan to Rule 16b-3 shall be null and
void.

      12.6 No Enlargement of Employment Rights. Neither the establishment or
maintenance of the Plan, the granting of options, the purchase of shares, nor
any action of any Employer or the Committee, shall be held or construed to
confer upon any individual any right to be continued as an employee of the
Employer nor, upon dismissal, any right or interest in any specific assets of
the Employers other than as provided in the Plan. Each Employer expressly
reserves the right to discharge any employee at any time, with or without cause.

      12.7 Apportionment of Costs and Duties. All acts required of the Employers
under the Plan may be performed by the Company for itself and its Affiliates,
and the costs of the Plan may be equitably apportioned by the Committee among
the Company and the other Employers. Whenever an Employer is permitted or
required under the terms of the Plan to do or

                                       8
<PAGE>

perform any act, matter or thing, it shall be done and performed by any officer
or employee of the Employers who is thereunto duly authorized by the Employers.

      12.8 Captions. The captions contained in and the table of contents
prefixed to the Plan are inserted only as a matter of convenience, and in no way
define, limit, enlarge or describe the scope or intent of the Plan nor in any
way shall affect the construction of any provision of the Plan.

                                    EXECUTION

      IN WITNESS WHEREOF, Solectron Corporation, by its duly authorized officer,
has executed this Plan on the date indicated below.

                                       SOLECTRON CORPORATION

Dated:  __________, 2002               By
                                         --------------------------------
                                         Title:

                                       9<PAGE>

                                                                   EXHIBIT 10.12

                              SOLECTRON CORPORATION

                        MARC ONETTO EMPLOYMENT AGREEMENT

<PAGE>

         This Agreement is entered into on June 18, 2003 (the "EFFECTIVE DATE")
by and between Solectron Corporation (the "COMPANY"), and Marc Onetto
("EXECUTIVE").

         1.       Duties and Scope of Employment.

                  (a)      Positions and Duties. As of the Effective Date,
Executive will serve as the Executive Vice President of Worldwide Operations of
the Company. Executive's principal place of employment will be at the Company's
headquarters in Milpitas, California. Executive will render such business and
professional services in the performance of his duties, consistent with
Executive's position within the Company, as will reasonably be assigned to him
by the Company's Chief Executive Officer. The Executive shall report to the
Company's President and Chief Executive Officer. The Company's worldwide
operations shall report to Executive, including Manufacturing, Materials,
Information Technology, Logistics (including transportation) and all company
wide quality programs. The period of Executive's employment under this Agreement
is referred to herein as the "EMPLOYMENT TERM."

                  (b)      Obligations. During the Employment Term, Executive
will devote Executive's full business efforts and time to the Company. For the
duration of the Employment Term, Executive agrees not to actively engage in any
other employment, occupation or consulting activity for any direct or indirect
remuneration without the prior approval of the President and Chief Executive
Officer (which approval will not be unreasonably withheld); provided, however,
that Executive may, without the approval of the President and Chief Executive
Officer, serve in any capacity with any civic, educational or charitable
organization, provided such services do not interfere with Executive's
obligations to the Company. It is understood and agreed by the Company and
Executive that Executive's obligation to commence performing services hereunder
is subject to Executive's possible need of continuing to provide transitional
services to Executive's present employer for such period as such employer may
reasonably request, and that during such period of transitional services for
such employer, Executive will be treated by the Company as being on an unpaid
leave of absence from the Company.

         2.       At-Will Employment. Executive and the Company agree that
Executive's employment with the Company constitutes "at-will" employment.
Executive and the Company acknowledge that this employment relationship may be
terminated at any time, upon written notice to the other party, with or without
good cause or for any or no cause, at the option either of the Company or
Executive. However, as described in this Agreement, Executive may be entitled to
severance benefits depending upon the circumstances of Executive's termination
of employment. Upon the termination of Executive's employment with the Company
for any reason, the Executive will be entitled to payment of all accrued but
unpaid vacation, expense reimbursements and other benefits due to Executive
through his termination date under any Company-provided or paid plans, policies
and arrangements, and Executive will also be entitled to payment of the vested
portion, if any, of his Deferred Compensation (as adjusted for investment
returns thereon) in accordance with his payout election pursuant to Section
4(g).

         3.       Term of Agreement. This Agreement will have an initial term of
two (2) years commencing on the Effective Date. On the second annual anniversary
of the Effective Date and on each annual anniversary of the Effective Date
thereafter, this Agreement automatically will

<PAGE>

renew for an additional term of one year unless at least thirty (30) days prior
to such anniversary, Executive or the Company gives the other party written
notice that the Agreement will not be renewed. If Executive incurs a termination
of employment that entitles Executive to receive the payments and benefits
described in Sections 8, 9, and 11 of this Agreement will not terminate until
all of Executive's and the Company's obligations under the Agreement have been
satisfied.

         4.       Compensation.

                  (a)      Base Salary. The Company will initially pay Executive
an annual salary of $600,000 as compensation for his services (the "BASE
SALARY"). The Base Salary will be paid periodically in accordance with the
Company's normal payroll practices and be subject to the usual, required
withholding. Executive's salary will be subject to review and adjustments will
be made based upon the Company's standard practices.

                  (b)      Signing Bonus. Executive will receive a bonus as the
result of executing this Agreement in the gross amount of $1,000,000 (the
"SIGNING BONUS") to be paid within thirty (30) days of the Effective Date. If,
before the third annual anniversary of the Effective Date, the Executive's
employment is terminated by the Company for Cause or by the Executive without
Good Reason, the Executive shall be required to repay the amount of such signing
bonus to the Company in full within 30 days following such termination date.

                  (c)      Annual Bonus. Executive's annual target bonus will be
100% of his Base Salary ("TARGET BONUS") with an annual maximum bonus of 200% of
his Base Salary. Executive's annual bonus will be payable upon achievement of
performance goals established by the Compensation Committee of the Board (the
"COMMITTEE"). Notwithstanding anything in the foregoing to the contrary, the
Executive's annual bonus for his first year of employment will be guaranteed to
equal at least $600,000, and shall be determined in accordance with the
following two sentences. For purposes of the Company's fiscal year ending August
31, 2003, the Executive shall receive a pro rata annual bonus equal to (x) the
greater of (i) $600,000 and (ii) the full year actual annual bonus, multiplied
by (y) a fraction, the numerator of which is the number of days between and
including the Effective Date and August 31, 2003 and the denominator of which is
365 (the "Fiscal 2003 Fraction"). For purposes of the Company's fiscal year
ending August 31, 2004, the Executive shall receive an annual bonus equal to the
greater of (x) (i) $600,000 multiplied by the difference between 1 and the
Fiscal 2003 Fraction (the "Fiscal 2004 Fraction") plus (ii) the actual full year
annual bonus (if any) multiplied by the difference between 1 and the Fiscal 2004
Fraction or (y) the actual full year annual bonus.

                  (d)      Stock Option. As of the Effective Date, Executive
will be granted a nonstatutory stock option to purchase 1,600,000 shares of the
Company's Common Stock (the "COMMON STOCK") at an exercise price equal to the
fair market value per share on the date of grant (the "OPTION"). The Option will
vest as to 1/48th of the shares subject to the Option upon the Executive's
completion of each full month of Service (as defined in Section 13) over the
forty-eight (48)-month period measured from the date of grant. Notwithstanding
anything in the foregoing to the contrary, the Shares subject to the Option
shall become fully vested upon the occurrence of a Change in Control. The Option
may be granted from one of the Company's stock option plans or pursuant to a
stand-alone stock option agreement, or a combination of both. As a result, the
Option will be subject to the terms, definitions and provisions of the Company's

                                       2
<PAGE>

stock option plan under which it is granted, if any, (the "OPTION PLAN") and the
stock option agreement by and between Executive and the Company (the "OPTION
AGREEMENT"), both of which documents are incorporated herein by reference;
provided, however, that the terms and provisions of the Option Agreement shall
be substantially the same as if the portion of the Option represented by such
Option Agreement had been granted under the Option Plan. The Company shall take
such actions as are necessary to register the shares relating to such Options
under the applicable securities laws on or before the date such Options become
exercisable.

                  (e)      Restricted Stock. Immediately upon the commencement
of employment, the Company will issue Executive 400,000 shares of Common Stock
(the "RESTRICTED STOCK") at $0.001 per share. In the event Executive's Service
(as defined in Section 13) terminates for any reason, and subject to the
provisions of this Agreement, the Company will have the right to repurchase the
Restricted Stock at $0.001 per share (the "REPURCHASE RIGHT"). Subject to the
accelerated vesting provisions set forth herein, all of the Restricted Stock
will vest and be released from the Company's Repurchase Right upon the
Executive's continuation in Service through the fourth anniversary of the
commencement of employment. Notwithstanding anything in the foregoing to the
contrary, all of the Restricted Stock will vest and be released from the
Company's Repurchase Right upon the occurrence of a Change in Control.

                  The Restricted Stock will be subject to a restricted stock
agreement by and between Executive and the Company (the "RESTRICTED STOCK
AGREEMENT"), which such agreement is hereby incorporated by reference and will
provide that Executive may satisfy the minimum withholding tax obligation that
may arise upon the vesting of such Restricted Stock with shares of Restricted
Stock that so vest and are released from the Company's Repurchase Right on such
date and that are valued, for such purpose, at the closing price per share of
Common Stock on such date. The Company shall take such actions as are necessary
to register the Restricted Stock under the applicable securities laws on or
before the date such Restricted Stock ceases to be subject to the Company's
Repurchase Right.

                  (f)      Future Equity Awards. The Executive acknowledges that
the next scheduled equity award date for all senior executives is September
2005, but the Committee is not precluded from making earlier awards if it
chooses to do so in its sole discretion.

                  (g)      Deferred Compensation. On the Effective Date, the
Company will credit $800,000 under its Executive Deferred Compensation Plan, as
amended and restated effective January 1, 2003 (the "DEFERRED COMPENSATION
PLAN") for the benefit of Executive (the "DEFERRED COMPENSATION PAYMENT").

                  The Deferred Compensation Payment (as adjusted for investment
returns thereon) will vest upon the eighth annual anniversary of the
commencement of the Executive's employment. Notwithstanding anything in the
foregoing to the contrary, the Deferred Compensation Payment will vest upon the
occurrence of a Change in Control. The entire Deferred Compensation Payment will
be held in a so-called rabbi trust, and Executive will have the right to invest
and reinvest the Deferred Compensation Payment and earnings thereon throughout
the deferral period, subject to the terms of the Deferred Compensation Plan.
Executive will elect the schedule for the deferred payout of the Deferred
Compensation Payment

                                       3
<PAGE>

within thirty (30) days after the Effective Date and such election will be
consistent with the deferred payment provisions of Articles 5 and 6 of the
Deferred Compensation Plan.

         5.       Employee Benefits. During the Employment Term, Executive will
be eligible to participate in accordance with the terms of all Company employee
benefit plans, policies and arrangements that are applicable to other senior
executives of the Company, as such plans, policies and arrangements and terms
may exist from time to time; provided that the Company shall waive any waiting
periods or pre-existing condition clauses under its welfare benefit plans so
that welfare benefit plan coverage for the Executive and his eligible dependents
shall being on the Effective Date.

         6.       Relocation. Executive will receive the Company's standard
executive relocation package to move from his current residence to the
metropolitan area containing the Company's headquarters. A copy of the Company's
executive relocation policy has been provided to Executive and is incorporated
herein by reference.

         7.       Expenses. The Company will reimburse Executive for reasonable
travel, entertainment or other expenses incurred by Executive in the furtherance
of or in connection with the performance of Executive's duties hereunder, in
accordance with the Company's expense reimbursement policy as in effect from
time to time.

         8.       Regular Severance.

                  (a)      Termination Without Cause; Resignation for Good
Reason. In the event that the Company terminates Executive's employment for
reasons other than "Cause" (as defined in Section 13) or "Disability" (as
defined in Section 13), or in the event Executive resigns as a result of "Good
Reason" (as defined in Section 13), either of which occur prior to a "Change of
Control" (as defined in Section 13) or after twelve (12) months following a
Change of Control, then Executive will be entitled to (A) the immediate vesting
of the Deferred Compensation Payment (as adjusted for investment returns
thereon) and payment in accordance with his payout election pursuant to Section
4(g) and (B) the immediate vesting and release from the Company's Repurchase
Right of the Restricted Stock, and (C) Executive shall have no repayment
obligation with respect to the Signing Bonus described in Section 4(b). In
addition, Executive will receive a six (6)-month consulting contract
(substantially in the form attached hereto as Exhibit A) with the aggregate
consulting fees (which shall be paid ratably during the consulting period in
accordance with the Company's regular payroll schedule) equal to one-half (1/2)
of the sum of his annual Base Salary and Target Bonus, each at the level then in
effect. During the consulting term (which shall commence immediately upon
termination of Executive's employment with the Company), the Executive shall
receive Company-paid coverage for Executive and Executive's eligible dependents
under the Company's "Benefit Plans" (as defined in Section 13). Following the
end of the consulting period, Executive will receive: (i) a lump-sum payment
equal to one (1) times his annual Base Salary and Target Bonus, plus one (1)
month (base salary and pro rated target bonus) per full year of service in
excess of six (6) years service, not to exceed a maximum of twenty-four (24)
months base and target bonus, each at the level then in effect, and (ii)
Company-paid coverage for Executive and Executive's eligible dependents under
the Company's Benefit Plans for the twelve (12) months following the end of the
consulting period.

                                       4
<PAGE>

                  (b)      Voluntary Termination without Good Reason;
Termination for Cause. If Executive's employment with the Company terminates
voluntarily by Executive without Good Reason or for Cause by the Company, then
(i) all further vesting of the Executive's outstanding options to purchase
Common Stock will terminate immediately, (ii) all payments of compensation by
the Company to Executive hereunder will terminate immediately (except as to
amounts already earned), (iii) the Executive's vested rights to his Restricted
Stock will be determined in accordance with Section 4(e), (iv) the Executive
will be paid all accrued but unpaid vacation, expense reimbursements and other
benefits due to Executive through his termination date under any
Company-provided or paid plans, policies and arrangements, (v) Executive will be
entitled to payment of the vested portion, if any, of his Deferred Compensation
Payment (as adjusted for investment returns thereon) in accordance with his
payout election pursuant to Section 4(g), and (vi) Executive will only be
eligible for severance benefits in accordance with the Company's established
policies as then in effect.

                  (c)      Termination due to Death or Disability. If
Executive's employment with the Company terminates due to the Executive's death
or Disability (as defined in Section 13), then Executive (or his estate) will be
entitled to (A) the immediate vesting of the Deferred Compensation Payment (as
adjusted for investment returns thereon) and payment in accordance with his
payout election pursuant to Section 4(g) and (B) the immediate vesting and
release from the Company's Repurchase Right of the Restricted Stock, and (C)
Executive (or his estate) shall have no repayment obligation with respect to the
Signing Bonus described in Section 4(b). Upon such termination, (i) all further
vesting of the Executive's outstanding options to purchase Common Stock will
terminate immediately, provided that any vested options shall remain exercisable
until the earlier of the one year anniversary of Executive's death or
termination due to Disability or the end of the original option term, (ii) all
payments of compensation by the Company to Executive hereunder will terminate
immediately (except as to amounts already earned), and (iii) the Executive (or
his estate) will be paid all accrued but unpaid vacation, expense reimbursements
and other benefits due to Executive through his termination date under any
Company-provided or paid plans, policies and arrangements.

         9.       Change of Control Severance.

                  (a)      Termination Without Cause; Resignation for Good
Reason. If within twelve (12) months following a Change of Control the Company
(or acquiring entity) terminates Executive's employment for reasons other than
"Cause" (as defined in Section 13) or "Disability" (as defined in Section 13),
or Executive resigns for "Good Reason" (as defined in Section 13), then
Executive will receive: (i) a lump sum payment equal to two (2) times his annual
Base Salary and Target Bonus, both at the level in effect immediately prior to
his termination date or (if greater) at the level in effect immediately prior to
the Change in Control, (ii) Company-paid coverage for Executive and Executive's
eligible dependents under the Company's "Benefit Plans" (as defined in Section
13) for thirty-six (36) months following such termination, and (iii) any Options
(as described in Section 4(d)) shall remain exercisable until the earlier of the
two year anniversary of such termination or resignation or the end of the
original option term. In addition, Executive shall have no repayment obligation
with respect to the Signing Bonus described in Section 4(b). For the avoidance
of doubt, Executive's rights to his Deferred Compensation Payment (described in
Section 4(g)), his Restricted Stock (described in

                                       5
<PAGE>

Section 4(e)) and his Options (described in Section 4(d)) shall have become
fully vested upon the occurrence of a Change in Control.

                  (b)      Voluntary Termination without Good Reason;
Termination for Cause. If within twelve (12) months following a Change in
Control, Executive's employment with the Company terminates voluntarily by
Executive without Good Reason or for Cause by the Company, then (i) all further
vesting of the Executive's outstanding options to purchase Common Stock will
terminate immediately, (ii) all payments of compensation by the Company to
Executive hereunder will terminate immediately (except as to amounts already
earned), (iii) the Executive will be paid all accrued but unpaid vacation,
expense reimbursements and other benefits due to Executive through his
termination date under any Company-provided or paid plans, policies and
arrangements, (iv) Executive will be entitled to payment of his Deferred
Compensation (described in Section 4(g)) (which shall become fully vested upon a
Change in Control) (as adjusted for investment returns thereon) in accordance
with his payout election pursuant to Section 4(g), (v) Executive will be
entitled to his Restricted Shares (described in Section 4(e)) (which shall have
become fully vested upon a Change in Control), (vi) Executive will be entitled
to his Options (described in Section 4(d)) and (vii) Executive will only be
eligible for severance benefits in accordance with the Company's established
policies as then in effect.

                  (c)      Termination due to Death or Disability. In the event
the Executive's employment terminates by reason of death or "Disability" (as
defined in Section 13) within twelve (12) months following a Change of Control,
then (i) all further vesting of the Executive's outstanding options to purchase
Common Stock will terminate immediately, provided that any vested options shall
remain exercisable until the earlier of the one year anniversary of Executive's
death or termination due to Disability or the end of the original option term,
(ii) all payments of compensation by the Company to Executive hereunder will
terminate immediately (except as to amounts already earned), and (iii) the
Executive (or his estate) will be paid all accrued but unpaid vacation, expense
reimbursements and other benefits due to Executive through his termination date
under any Company-provided or paid plans, policies and arrangements. In
addition, Executive (or his estate) shall have no repayment obligation with
respect to the Signing Bonus described in Section 4(b). For the avoidance of
doubt, Executive's rights to his Deferred Compensation Payment (described in
Section 4(g)), his Restricted Stock (described in Section 4(e)) and his Options
(described in Section 4(d)) shall have become fully vested upon the occurrence
of a Change in Control.

         10.      Conditions to Receipt of Severance; No Duty to Mitigate.

                  (a)      Separation Agreement and Release of Claims. The
receipt of any severance pursuant to Sections 8 and 9 will be subject to
executive signing and not revoking a separation agreement and release of claims
in a form reasonably acceptable to the Company. Such agreement will provide
(among other things) that Executive will not disparage the Company and the
Company (acting through its directors and officers) or its directors and
officers will not disparage the Executive during the twenty-four (24)-month
period following a termination that would otherwise trigger the payment of
severance under Sections 8 and 9. No severance pursuant to such Sections will be
paid or provided until the separation agreement and release agreement becomes
effective.

                                       6
<PAGE>

                  (b)      Non-Competition. In the event of a termination of
Executive's employment that would otherwise entitle Executive to the receipt of
severance pursuant to Sections 8 and 9, Executive agrees not to engage in
"Competition" (as defined in Section 13) during the twenty-four (24)-month
period following such termination. In the event Executive engages in Competition
within such period, all continuing payments and benefits to which Executive may
otherwise be entitled pursuant to Sections 8 and 9 will immediately cease
(including Executive's ability to exercise any outstanding stock options) and
the Company will be entitled to monetary damages (not to exceed the value of the
applicable severance benefits actually paid pursuant to Sections 8 and 9) or
equitable relief in the event of a breach of such covenant.

                  (c)      Nonsolicitation. The receipt of any severance
benefits pursuant to Sections 8 and 9 will be subject to Executive not violating
the provisions of Section 17. In the event Executive breaches the provisions of
Section 17, all continuing payments and benefits to which Executive may
otherwise be entitled pursuant to Sections 8 and 9 will immediately cease
(including Executive's ability to exercise any outstanding stock options).

                  (d)      No Duty to Mitigate. Executive will not be required
to mitigate the amount of any payment contemplated by this Agreement, nor will
any earnings that Executive may receive from any other source reduce any such
payment.

         11.      Golden Parachute Excise Tax.

                  (a)      In the event it will be determined that any payment
or distribution by the Company or other amount with respect to the Company to or
for the benefit of Executive, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this Section
12 (a "PAYMENT"), is (or will be) subject to the excise tax imposed by Section
4999 of the Internal Revenue Code of 1986, as amended (the "CODE") or any
interest or penalties are (or will be) incurred by Executive with respect to the
excise tax imposed by Section 4999 of the Code with respect to the Company (the
excise tax, together with any interest and penalties, are hereinafter
collectively referred to as the "EXCISE TAX"), Executive will be entitled to
receive an additional cash payment (a "GROSS-UP PAYMENT") from the Company in an
amount equal to the sum of the Excise Tax and an amount sufficient to pay the
cumulative Excise Tax and all cumulative income taxes (including any interest
and penalties imposed with respect to such taxes) relating to the Gross-Up
Payment so that the net amount retained by Executive is equal to all payments to
which Employee is entitled pursuant to the terms of this Agreement (excluding
the Gross-Up Payment) or otherwise less income taxes (but not reduced by the
Excise Tax or by income taxes attributable to the Gross-Up Payment).

                  (b)      Subject to the provisions of Section 11(c), all
determinations required to be made under this Section 11, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at the determination, will be made by
a nationally recognized certified public accounting firm selected by the Company
with the consent of Executive, which should not unreasonably be withheld (the
"ACCOUNTING FIRM") which will provide detailed supporting calculations both to
the Company and Executive within thirty (30) days after the receipt of notice
from Executive that

                                       7
<PAGE>

there has been a Payment, or such earlier time as is requested by the Company.
All fees and expenses of the Accounting Firm will be borne solely by the
Company. The Company, as determined in accordance with this Section 11, will pay
any Gross-Up Payment to Executive within five (5) days after the receipt of the
Accounting Firm's determination. If the Accounting Firm determines that no
Excise Tax is payable by Executive, it will so indicate to Executive in writing.
Any determination by the Accounting Firm will be binding upon the Company and
Executive; provided, however, that as a result of uncertainty in the application
of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm, it is possible that Gross-Up Payments that the Company should
have made will not have been made (an "UNDERPAYMENT"), consistent with the
calculations required to be made hereunder. In the event the Company exhausts
its remedies in accordance with Section 11(c), or elects not to exercise such
remedies, and Executive thereafter is required to make a payment of any Excise
Tax, the Accounting Firm will determine the amount of underpayment that has
occurred and the Underpayment will be promptly paid by the Company to or for the
benefit of Executive.

                  (c)      Executive will notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require a
Gross-Up Payment (that has not already been paid by the Company). The
notification will be given as soon as practicable but no later than ten (10)
business days after Executive is informed in writing of the claim and will
apprise the Company of the nature of the claim and the date on which the claim
is requested to be paid. Executive will not pay the claim prior to the
expiration of the 30-day period following the date on which Executive gives
notice to the Company or any shorter period ending on the date that any payment
of taxes with respect to the claim is due. If the Company notifies Executive in
writing prior to the expiration of the 30-day or shorter period that it desires
to contest the claim, Executive will:

                           (i)      give the Company any information reasonably
         requested by the Company relating to the claim;

                           (ii)     take any action in connection with
         contesting the claim as the Company will reasonably request in writing
         from time to time, including, without limitation, accepting legal
         representation with respect to the claim by an attorney reasonably
         selected by the Company;

                           (iii)    cooperate with the Company in good faith in
         order effectively to contest the claim; and

                           (iv)     permit the Company to participate in any
         proceedings relating to the claim.

                  (d)      The Company will bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with the contest and will indemnify and hold Executive harmless, on an after-tax
basis, for any Excise Tax or income tax (including interest and penalties with
respect thereto) imposed as a result of the representation and payment of costs
and expenses. Without limitation of the forgoing provisions of this Section 11,
the Company will control all proceedings taken in connection with the contest
and, at its sole option, may pursue or forego any and all administrative
appeals, proceedings, hearings, and conferences

                                       8
<PAGE>

with the taxing authority in respect of the claim and may, at its sole option,
either direct Executive to pay the tax claimed and sue for a refund or contest
the claim in any permissible manner, and Executive agrees to prosecute the
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company will
determine. If the Company directs Executive to pay the claim and sue for a
refund, the Company will advance the amount of the payment to Executive, on an
interest-free basis, and will indemnify and hold Executive harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to the advance or with
respect to any imputed income with respect to the advance; and any extension of
the statute of limitations relating to payment of taxes for the taxable year of
Executive with respect to which the contested amount is claimed to be due will
be limited solely to the contested amount. The Company's control of the contest
will be limited to issues with respect to which a Gross-Up Payment would be
payable hereunder and Executive will be entitled to settle or contest, as the
case may be, any other issue raised by the Internal Revenue Service or any other
taxing authority. If, after the receipt by Executive of an amount advanced by
the Company pursuant to Section 11(d), Executive becomes entitled to receive any
refund with respect to the claim, Executive will, subject to the Company's
compliance with the requirements of Section 11(d), promptly pay to the Company
the amount of the refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by Executive of an amount
advanced by the Company pursuant to this Section 11(d), a determination is made
that Executive will not be entitled to any refund with respect to the claim and
the Company does not notify Executive in writing of its intent to contest the
denial of refund prior to the expiration of thirty (30) days after the
determination, then the advance will be forgiven and will not be required to be
repaid and the amount of the advance will offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

                  (e)      Should the Company elect not to contest the Internal
Revenue Service claim in accordance with the foregoing provisions of Section
11(c) or otherwise not provide Executive with written notice of its intention to
contest such claim within the applicable thirty (30) day or shorter notice
period provided in Section 11(c), then the Company will promptly thereafter pay
Executive the applicable Gross-Up Payment attributable to such claim.

         12.      Attorneys' Fees. The Company will reimburse Executive's
reasonable attorneys' fees and other professional fees (up to $35,000) in
connection with the negotiation, preparation and execution of this Agreement
with the Company.

         13.      Definitions.

                  (a)      Benefit Plans. For purposes of this Agreement,
"BENEFIT PLANS" means plans, policies or arrangements that the Company sponsors
(or participates in) and that immediately prior to Executive's termination of
employment provide Executive and/or Executive's eligible dependents with
medical, dental, vision and/or financial counseling benefits. Benefit Plans do
not include any other type of benefit (including, but not by way of limitation,
disability, life insurance or retirement benefits). A requirement that the
Company provide Executive and Executive's eligible dependents with coverage
under the Benefit Plans will not be satisfied unless the coverage is no less
favorable than that provided to Executive and Executive's eligible dependents
immediately prior to Executive's termination of employment.

                                       9
<PAGE>

Notwithstanding any contrary provision of Sections 8 and 9, but subject to the
immediately preceding sentence, the Company may, at its option, satisfy any
requirement that the Company provide coverage under any Benefit Plan by instead
providing coverage under a separate plan or plans providing coverage that is no
less favorable or by paying Executive a lump-sum payment which is, on an
after-tax basis, sufficient to provide Executive and Executive's eligible
dependents with equivalent coverage under a third party plan that is reasonably
available to Executive and Executive's eligible dependents.

                  (b)      Cause. For purposes of this Agreement, "CAUSE" will
mean (i) a willful failure by Executive to substantially perform Executive's
material duties under this Agreement other than a failure resulting from the
Executive's complete or partial incapacity due to physical or mental illness or
impairment, (ii) a willful act by Executive that constitutes gross misconduct
and is injurious to the Company, (iii) a willful breach by Executive of a
material provision of this Agreement, (iv) a material and willful violation by
Executive of a federal or state law or regulation applicable to the business of
the Company which is injurious to the Company, or (v) Executive's conviction or
plea of guilty or no contest to a felony. The Company will not terminate
Executive's employment for Cause without first providing Executive with written
notice specifically identifying the acts or omissions constituting the grounds
for a Cause termination and, with respect to clauses (i) through (iv), a
reasonable cure period of not less than thirty (30) days following such notice.
No act or failure to act by Executive will be considered "willful" unless
committed without good faith and without a reasonable belief that the act or
omission was in the Company's best interest.

                  (c)      Change of Control. For purposes of this Agreement,
"CHANGE OF CONTROL" means the occurrence of any of the following:

                           (i)      the sale, lease, conveyance or other
         disposition of all or substantially all of the Company's assets to any
         "person" (as such term is used in Section 13(d) of the Securities
         Exchange Act of 1934, as amended), entity or group of persons acting in
         concert;

                           (ii)     any person or group of persons becoming the
         "beneficial owner" (as defined in Rule 13d-3 under said Act), directly
         or indirectly, of securities of the Company representing 30% or more of
         the total voting power represented by the Company's then outstanding
         voting securities;

                           (iii)    a merger or consolidation of the Company
         with any other corporation, other than a merger or consolidation that
         would result in the voting securities of the Company outstanding
         immediately prior thereto continuing to represent (either by remaining
         outstanding or by being converted into voting securities of the
         surviving entity or its controlling entity) at least 50% of the total
         voting power represented by the voting securities of the Company or
         such surviving entity (or its controlling entity) outstanding
         immediately after such merger or consolidation; or

                           (iv)     a contest for the election or removal of
         members of the Board that results in the removal from the Board of at
         least 33% of the incumbent members of the Board.

                                       10
<PAGE>

                  (d)      Competition. The Company will create a written list
of up to six companies that compete with the Company (each a "COMPETITOR"). The
Company may revise such list (by adding new companies to the list and reducing a
like number of companies from the list at the same time) in writing until the
last thirty (30) days of Executive's employment with the Company. For purposes
of this Agreement, Executive will be deemed to have engaged in "COMPETITION" if
he renders services for any of the six or fewer Competitors on the list
described in the previous two sentences.

                  (e)      Disability. For purposes of this Agreement,
"DISABILITY" will mean that Executive has been unable to perform the principal
functions of Executive's duties due to a physical or mental impairment, but only
if such inability has lasted or is reasonably expected to last for at least six
(6) months. Whether Executive has a Disability will be determined by the Board
based on evidence provided by one or more physicians selected by the Board and
reasonably acceptable to Executive.

                  (f)      Good Reason. For purposes of this Agreement, "GOOD
REASON" will mean (without Executive's written consent): (i) any reduction in
Executive's title, (ii) any employee other than the Chief Executive Officer is
inserted above Executive in the Company's organizational structure, (iii) the
Executive reports to anyone other than the Chief Executive Officer or the Board,
(iv) the operations described in Section 1(a) above are taken away from the
Executive, (v) a material reduction in Executive's authority, status or
responsibilities, (vi) a reduction in the aggregate level of Executive's
compensation (including Base Salary, Target Bonus and benefits) of more than
10%, other than a percentage reduction which is the same for all officers of the
Company, (vii) a material breach by the Company of its obligations to Executive
under this Agreement, (viii) any relocation of Executive's principal place of
employment by more than twenty-five (25) miles, or (ix) the issuance by the
Company of a notice of nonrenewal under Section 3. With respect to clause (vii),
Executive will not resign for Good Reason without first providing the Company
with written notice specifically identifying the acts or omissions constituting
the grounds for a Good Reason termination and a reasonable cure period of not
less than thirty (30) days following such notice.

                  (g)      Service. For purposes of this Agreement, "SERVICE"
means the performance of services by Executive as an officer, employee,
consultant or board member of the Company or any parent or subsidiary
corporation (as such terms are defined in Sections 424(e) and (f) of the
Internal Revenue Code).

         14.      Confidential Information. Executive agrees to enter into the
Company's standard Confidential Information and Invention Assignment Agreement
(the "CONFIDENTIAL INFORMATION AGREEMENT") upon commencing employment hereunder.

         15.      Assignment. This Agreement will be binding upon and inure to
the benefit of (a) the heirs, executors and legal representatives of Executive
upon Executive's death and (b) any successor of the Company. Any such successor
of the Company will be deemed substituted for the Company under the terms of
this Agreement for all purposes. For this purpose, "SUCCESSOR" means any person,
firm, corporation or other business entity which at any time, whether by
purchase, merger or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of the Company. Except as otherwise
permitted by the terms of the

                                       11
<PAGE>

Option Plan and the Option Agreement, none of the rights of Executive to receive
any form of compensation payable pursuant to this Agreement may be assigned or
transferred except by will or the laws of descent and distribution. Any other
attempted assignment, transfer, conveyance or other disposition of Executive's
right to compensation or other benefits will be null and void.

         16.      Notices. All notices, requests, demands and other
communications called for hereunder will be in writing and will be deemed given
(i) on the date of delivery if delivered personally, (ii) one (1) day after
being sent by a well established commercial overnight service, or (iii) four (4)
days after being mailed by registered or certified mail, return receipt
requested, prepaid and addressed to the parties or their successors at the
following addresses, or at such other addresses as the parties may later
designate in writing:

         If to the Company:

         Solectron Corporation
         847 Gibraltar Drive
         Milpitas, CA 95035
         Attn: Chairman, Compensation Committee of the Board of
         Directors

         If to Executive:

         at the last residential address known by the Company.

         17.      Non-Solicitation. For a period beginning on the Effective Date
and ending twenty-four (24) months after the Executive ceases to be employed by
the Company, Executive, directly or indirectly, whether as employee, owner, sole
proprietor, partner, director, member, consultant, agent, founder, co-venturer
or otherwise, will: (i) not solicit, induce or influence any person to leave
employment with the Company; or (ii) not directly or indirectly solicit business
from any of the Company's substantial customers and users on behalf of any
Competitor (as defined in Section 13(d)).

         18.      Severability. In the event that any provision hereof becomes
or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement will continue in full force and effect without said
provision.

         19.      Arbitration.

                  (a)      General. In consideration of Executive's service to
the Company, its promise to arbitrate all employment related disputes and
Executive's receipt of the compensation, pay raises and other benefits paid to
Executive by the Company, at present and in the future, Executive agrees that
any and all controversies, claims, or disputes with anyone (including the
Company and any employee, officer, director, shareholder or benefit plan of the
Company in their capacity as such or otherwise) arising out of, relating to, or
resulting from Executive's service to the Company under this Agreement or
otherwise or the termination of Executive's service with the Company, including
any breach of this Agreement, will be subject to binding arbitration under the
Arbitration Rules set forth in California Code of Civil Procedure Section 1280
through 1294.2, including Section 1283.05 (the "RULES") and pursuant to

                                       12
<PAGE>

California law. Disputes which Executive agrees to arbitrate, and thereby agrees
to waive any right to a trial by jury, include any statutory claims under state
or federal law, including, but not limited to, claims under Title VII of the
Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age
Discrimination in Employment Act of 1967, the Older Workers Benefit Protection
Act, the California Fair Employment and Housing Act, the California Labor Code,
claims of harassment, discrimination or wrongful termination and any statutory
claims. Executive further understands that this Agreement to arbitrate also
applies to any disputes that the Company may have with Executive.

                  (b)      Procedure. Executive agrees that any arbitration will
be administered by the American Arbitration Association ("AAA") and that a
neutral arbitrator will be selected in a manner consistent with its National
Rules for the Resolution of Employment Disputes. The arbitration proceedings
will be held in Santa Clara County, CA and will allow for discovery according to
the rules set forth in the National Rules for the Resolution of Employment
Disputes or California Code of Civil Procedure. Executive agrees that the
arbitrator will have the power to decide any motions brought by any party to the
arbitration, including motions for summary judgment and/or adjudication and
motions to dismiss and demurrers, prior to any arbitration hearing. Executive
agrees that the arbitrator will issue a written decision on the merits.
Executive also agrees that the arbitrator will have the power to award any
remedies, including attorneys' fees and costs, available under applicable law.
Executive understands the Company will pay for any administrative or hearing
fees charged by the arbitrator or AAA except that Executive will pay the first
$200.00 of any filing fees associated with any arbitration Executive initiates.
Executive agrees that the arbitrator will administer and conduct any arbitration
in a manner consistent with the Rules and that to the extent that the AAA's
National Rules for the Resolution of Employment Disputes conflict with the
Rules, the Rules will take precedence.

                  (c)      Remedy. Except as provided by the Rules, arbitration
will be the sole, exclusive and final remedy for any dispute between Executive
and the Company. Accordingly, except as provided for by the Rules, neither
Executive nor the Company will be permitted to pursue court action regarding
claims that are subject to arbitration. Notwithstanding, the arbitrator will not
have the authority to disregard or refuse to enforce any lawful Company policy,
and the arbitrator will not order or require the Company to adopt a policy not
otherwise required by law which the Company has not adopted.

                  (d)      Availability of Injunctive Relief. In addition to the
right under the Rules to petition the court for provisional relief, Executive
agrees that any party may also petition the court for injunctive relief where
either party alleges or claims a violation of this Agreement or the
Confidentiality Agreement or any other agreement regarding trade secrets,
confidential information, nonsolicitation or Labor Code Section 2870. In the
event either party seeks injunctive relief, the prevailing party will be
entitled to recover reasonable costs and attorneys' fees.

                  (e)      Administrative Relief. Executive understands that
this Agreement does not prohibit Executive from pursuing an administrative claim
with a local, state or federal administrative body such as the Department of
Fair Employment and Housing, the Equal Employment Opportunity Commission or the
workers' compensation board. This Agreement does, however, preclude Executive
from pursuing court action regarding any such claim.

                                       13
<PAGE>

                  (f)      Voluntary Nature of Agreement. Executive acknowledges
and agrees that Executive is executing this Agreement voluntarily and without
any duress or undue influence by the Company or anyone else. Executive further
acknowledges and agrees that Executive has carefully read this Agreement and
that Executive has asked any questions needed for Executive to understand the
terms, consequences and binding effect of this Agreement and fully understand
it, including that Executive is waiving Executive's right to a jury trial.
Finally, Executive agrees that Executive has been provided an opportunity to
seek the advice of an attorney of Executive's choice before signing this
Agreement.

         20.      Attorneys' Fees in the Event of Litigation. In the event of
any litigation between the Company and Executive under this Agreement (including
arbitration as provided in Section 20), the Executive will be entitled to
reasonable attorneys' fees incurred in connection therewith if the Executive
prevails on a material issue.

         21.      Integration. This Agreement, together with the Option Plan,
Option Agreement, Restricted Stock Agreement, the Deferred Compensation Plan and
the Confidential Information Agreement represents the entire agreement and
understanding between the parties as to the subject matter herein and supersedes
all prior or contemporaneous agreements whether written or oral. No waiver,
alteration, or modification of any of the provisions of this Agreement will be
binding unless in writing that specifically references this Section 22 and
signed by duly authorized representatives of the parties hereto.

         22.      Waiver of Breach. The waiver of a breach of any term or
provision of this Agreement, which must be in writing, will not operate as or be
construed to be a waiver of any other previous or subsequent breach of this
Agreement.

         23.      Headings. All captions and section headings used in this
Agreement are for convenient reference only and do not form a part of this
Agreement.

         24.      Tax Withholding. All payments made pursuant to this Agreement
will be subject to withholding of applicable taxes.

         25.      Governing Law. This Agreement will be governed by the laws of
the State of California (with the exception of its conflict of laws provisions).

         26.      Acknowledgment. Executive acknowledges that he has had the
opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement.

         27.      Counterparts. This Agreement may be executed in counterparts,
and each counterpart will have the same force and effect as an original and will
constitute an effective, binding agreement on the part of each of the
undersigned.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       14
<PAGE>

         IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by their duly authorized officers, as of the day and
year first above written.

COMPANY:

SOLECTRON CORPORATION

/s/ Kevin O'Connor
--------------------------------------------
By:  Kevin O'Connor
Title: Senior Vice President, Human Resources
Date: 18 June 2003

EXECUTIVE:

/s/ Marc Onetto
--------------------------------------------
Marc Onetto
Date: 18 June 2003

                                       15

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