Document:

Exhibit 10.05

Exhibit 10.05

Description of Annual Incentive Bonus Plan for Fiscal 2011

On May 26, 2010, the Board approved the Company’s incentive bonus plan for fiscal 2011. The
plan provides its executive officers with the opportunity to earn quarterly cash bonuses based upon
the achievement of pre-established performance goals. Bonus opportunities will be based on
achievement of quarterly targets. 50% of the quarterly payouts (if any) will be held back and will
not be payable until after the fiscal year end. In addition, payout levels not achieved based on
quarterly results will be subject to an annual catch-up if the annual payout level is greater than
the cumulative quarterly payouts. Performance goals under the plan will be: quarterly revenue,
earnings per share, operating profit (as a percentage of sales), and return on invested capital
targets at the Company level; and quarterly revenue, operating profit (as a percentage of sales),
profit after interest (as a percentage of sales), inventory turnover and other business-specific
business unit targets at the business unit level for certain executives. The plan allows awards to
provide for different metrics, target levels and weightings for different executives.

Under the incentive bonus plan, target award opportunities are set at various percentages of
base salary, which will be: 150% of base salary in the case of the Chief Executive Officer; 125% of
base salary in the case of the Chief Financial Officer; and between 60% and 80% of base salary in
the cases of other officers. Actual payout opportunities for each bonus component will range from
a threshold of 50% of target to a maximum of 300% of target (200% in the cases of the CEO and CFO)
based on achievement of the performance measures. If the Company or business unit fails to achieve
the threshold level for any performance measure, no payout is awarded for that measure. For
purposes of determining achievement of award opportunities, the incentive bonus plan uses adjusted,
non-GAAP measures.Exhibit 10.06

EXHIBIT 10.06

FLEXTRONICS INTERNATIONAL LTD.

EXECUTIVE INCENTIVE COMPENSATION RECOUPMENT POLICY

(Adopted May 13, 2010)

I. INTRODUCTION

The Board of Directors of Flextronics International Ltd. (the “Company”) has determined that
it is in the best interests of the Company to adopt a policy (the “Policy”) providing for the
Company’s recoupment of certain incentive compensation paid to senior executives and other officers
who are direct reports of the chief executive officer under certain circumstances. In cases of a
material financial statement restatement where a Covered Officer’s fraud or misconduct has caused
the restatement, the Board may determine to recoup incentive compensation which was paid or vested
based upon the achievement of certain financial results (including gains from the sale of vested
shares) to the extent that the amount of such compensation would have been lower if the financial
results had been properly reported and may seek to cancel equity awards where the financial results
of the Company were considered in granting such awards.

II. EFFECTIVE DATE

This Policy shall apply to all Incentive Compensation paid or awarded on or after the adoption
of this Policy.

III. DEFINITIONS

For purposes of this Policy, the following terms shall have the meanings set forth below:

“Covered Officers” shall mean executive officers designated by the Board as officers for
purposes of Section 16 of the Securities Exchange Act of 1934, as amended, and any other officers
who are direct reports of the chief executive officer.

“Incentive Compensation” shall mean bonuses or awards under the Company’s short and long-term
incentive bonus plans, grants and awards under the Company’s equity incentive plans, and
contributions under the Company’s deferred compensation plans where the contributions are based on
the achievement of financial results.

“Misconduct” shall mean a knowing violation of SEC rules and regulations or Company policy.
Determinations of Misconduct for purposes of this Policy shall be made by the Board in its sole and
absolute discretion (or, if the Board has delegated such authority to the Compensation Committee,
by the Compensation Committee in its sole and absolute discretion) independently of, and the Board
(or the Compensation Committee) shall not be bound by determinations by management that a Covered
Officer has or has not met any particular standard of conduct under law or Company policy.

 

 

 

IV. RECOUPMENT OF INCENTIVE COMPENSATION

In the event of a material restatement of financial results, other than as a result of a
change in accounting principles (a “Restatement”) where a Covered Officer engaged in fraud or
Misconduct that caused the need for the Restatement, the Board will review all Incentive
Compensation paid (or, in the case of equity-based compensation, which vested) to Covered Officers
on the basis of having met or exceeded specific performance targets for performance periods during
the Restatement period. To the extent permitted by applicable law, the Board will seek to recoup
Incentive Compensation, in all appropriate cases (taking into account all relevant factors,
including whether the assertion of a recoupment claim may prejudice the interests of the Company in
any related proceeding or investigation), paid (or in the case of equity-based compensation, which
vested) to any Covered Officer on or after the Effective Date of this Policy, if and to the extent
that (i) the amount (or vesting) of Incentive Compensation was calculated based upon the
achievement of certain financial results that were subsequently reduced due to a Restatement, and
(ii) the amount (or vesting) of Incentive Compensation that would have been paid (or, in the case
of equity-based compensation, vested) to the Covered Officer had the financial results been
properly reported would have been lower than the amount actually paid (or, in the case of
equity-based compensation, vested). In the case of equity awards that vested based on the
achievement of financial results that were subsequently reduced, the Board also may seek to recover
gains from the sale or disposition of vested shares (including shares purchased upon the exercise
of options that vested based on the achievement of financial results). In addition, the Board may
to the extent it deems appropriate determine to cancel outstanding equity awards where the Board or
the Compensation Committee took into account the financial performance of the Company in granting
such awards and the financial results were subsequently reduced due to such a Restatement.

V. ACKNOWLEDGEMENT BY COVERED OFFICERS

Covered Officers shall acknowledge this Policy.

VI. BINDING EFFECT OF DETERMINATIONS BY BOARD; DELEGATION

The Board may delegate to the Compensation Committee all determinations to be made and actions
to be taken by the Board under this Policy. Any determination made by the Board or the
Compensation Committee under this Policy shall be final, binding and conclusive on all parties.

VII. LIMITATION ON PERIOD FOR RECOUPMENT

The Board may only seek recoupment under Section IV of this Policy if the Restatement shall
have occurred within 36 months of the publication of the audited financial statements that have
been restated.

 

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VIII. SOURCES OF RECOUPMENT

The Board may seek recoupment from the Covered Officers from any of the following sources:
prior incentive compensation payments; future payments of incentive compensation; cancellation of
outstanding equity awards; future equity awards; and direct repayment.

IX. SEVERABILITY

If any provision of this Policy or the application of any such provision to any Covered
Officer shall be adjudicated to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this Policy,
and the invalid, illegal or unenforceable provisions shall be deemed amended to the minimum extent
necessary to render any such provision or application enforceable.

X. NO IMPAIRMENT OF OTHER REMEDIES

This Policy does not preclude the Company from taking any other action to enforce a Covered
Officer’s obligations to the Company, including termination of employment or institution of civil
or criminal proceedings.

This Policy is in addition to the requirements of Section 304 of the Sarbanes-Oxley Act of
2002 that are applicable to the Company’s Chief Executive Officer and Chief Financial Officer.

 

3Exhibit 10.07

Exhibit 10.07

Compensation Arrangements of Certain Executive Officers of Flextronics International Ltd.

Note: The following summary of compensation arrangements does not include all previously-reported
compensation arrangements or awards granted under previously-disclosed incentive plans.
Disclosures with respect to compensation for Named Executive Officers for the 2010 fiscal year are
included in the Company’s definitive proxy statement for the Company’s 2010 Annual General Meeting
of Shareholders, and disclosures with respect to compensation for Named Executive Officers for the
2011 fiscal year will be included in the Company’s definitive proxy statement for the Company’s
2011 Annual General Meeting of Shareholders.

Compensation for Michael McNamara (Chief Executive Officer)

Mr. McNamara’s current annual base salary is $1,250,000. In addition, Mr. McNamara will
participate in the Company’s annual incentive bonus plan and long-term cash incentive deferred
compensation plan (which is described in the Company’s Report on Form 8-K filed on June 2, 2010).
Mr. McNamara also received awards of performance-based share bonus awards and service-based share
bonus awards under the Company’s equity incentive plans as part of his fiscal 2011 compensation.
Vesting of the performance-based award will depend on the Company achieving levels of total
shareholder return relative to the average of the Standard & Poor’s 500 Index total shareholder
return.

Compensation for Paul Read (Chief Financial Officer)

Mr. Read’s current annual base salary is $600,000. In addition, Mr. Read will participate in
the Company’s annual incentive bonus plan. Mr. Read also received awards of performance-based
share bonus awards and service-based share bonus awards under the Company’s equity incentive plans
as part of his fiscal 2011 compensation. Vesting of the performance-based award will depend on the
Company achieving levels of total shareholder return relative to the average of the Standard &
Poor’s 500 Index total shareholder return.

Compensation for Michael Clarke

Mr. Clarke’s current annual base salary is $550,000. In addition, Mr. Clarke will participate
in the Company’s annual incentive bonus plan and long-term cash incentive deferred compensation
plan (which is described in the Company’s Report on Form 8-K filed on June 2, 2010). Mr. Clarke
also received awards of performance-based share bonus awards and service-based share bonus awards
under the Company’s equity incentive plans as part of his fiscal 2011 compensation. Vesting of the
performance-based award will depend on the Company achieving levels of total shareholder return
relative to the average of the Standard & Poor’s 500 Index total shareholder return.

 

 

 

Compensation for Francois Barbier

Mr. Barbier’s current annual base salary is €370,370. In addition, Mr. Barbier will
participate in the Company’s annual incentive bonus plan and long-term cash incentive deferred
compensation plan (which is described in the Company’s Report on Form 8-K filed on June 2, 2010).
Mr. Barbier also received awards of performance-based share bonus awards and service-based share
bonus awards under the Company’s equity incentive plans as part of his fiscal 2011 compensation.
Vesting of the performance-based award will depend on the Company achieving levels of total
shareholder return relative to the average of the Standard & Poor’s 500 Index total shareholder
return.

Compensation for Werner Widmann

Mr. Widmann’s current annual base salary is €327,349. In addition, Mr. Widmann will
participate in the Company’s annual incentive bonus plan. Mr. Widmann also received awards of
performance-based share bonus awards and service-based share bonus awards under the Company’s
equity incentive plans as part of his fiscal 2011 compensation. Vesting of the performance-based
award will depend on the Company achieving levels of total shareholder return relative to the
average of the Standard & Poor’s 500 Index total shareholder return.

 

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