Document:

exv10w02

Exhibit 10.02

FLEXTRONICS INTERNATIONAL LTD.

2002 INTERIM INCENTIVE PLAN

As Adopted May 6, 2002 and amended through July 13, 2009

     1. PURPOSE. The purpose of this Plan is to provide incentives to attract, retain and
motivate eligible persons whose present and potential contributions are important to the success of
the Company, its Parent and Subsidiaries, by offering them an opportunity to participate in the
Company’s future performance through awards of Options and Share Bonuses. Capitalized terms not
defined in the text are defined in Section 20.

     2. SHARES SUBJECT TO THE PLAN.

          2.1 Number of Shares Available. Subject to Sections 2.2 and 15, the total number of
Shares reserved and available for grant and issuance pursuant to this Plan will be 20,000,000
Shares plus Shares that are subject to: (a) issuance upon exercise of an Option but cease to be
subject to such Option for any reason other than exercise of such Option; (b) issuance pursuant to
a Share Bonus but cease to be subject to such Share Bonus for any reason other than issuance
pursuant to such Share Bonus; and (c) an Award that otherwise terminates without Shares being
issued. At all times the Company shall reserve and keep available a sufficient number of Shares as
shall be required to satisfy the requirements of all outstanding Awards granted under this Plan.

          2.2 Adjustment of Shares. Should any change be made to the Shares issuable under the
Plan by reason of any stock split, stock dividend, recapitalization, combination of shares,
exchange of shares or other change affecting the outstanding Shares as a class without the
Company’s receipt of consideration, then appropriate adjustments shall be made to (i) the maximum
number and/or class of securities issuable under the Plan and (ii) the number and/or class of
securities and price per Share in effect under each Award outstanding under Sections 5 and 6. Such
adjustments to the outstanding Awards are to be effected in a manner which shall preclude the
enlargement or dilution of rights and benefits under such Awards, provided,
however, that (i) fractions of a Share will not be issued but will be replaced by a cash
payment equal to the Fair Market Value of such fraction of a Share, as determined by the Committee,
and (ii) in the case of an Option granted under Section 5, no such adjustment shall be made if as a
result, the Exercise Price would fall below the par value of a Share and if such adjustment would
but for this paragraph (ii) result in the Exercise Price being less than the par value of a Share,
the Exercise Price payable shall be the par value of a Share. The adjustments determined by the
Committee shall be final, binding and conclusive.

     3. ELIGIBILITY. All Awards may be granted to employees, officers and directors of the
Company or any Parent or Subsidiary of the Company, provided however, that non-executive directors
of the Company shall be eligible for the grant of Awards only to the extent permitted by, and
subject to compliance with, all applicable laws and regulations. A person may be granted more than
one Award under this Plan. Awards granted to officers and non-employee directors may not exceed in
the aggregate forty-nine percent (49%) of all Shares that are reserved for grant under this Plan.

     4. ADMINISTRATION.

          4.1 Committee Authority. This Plan will be administered by the Committee or by the
Board acting as the Committee. Subject to the general purposes, terms and conditions of this Plan,
and to the direction of the Board, the Committee will have full power to implement and carry out
this Plan. The Committee will have the authority to:

	 	(a)	 	construe and interpret this Plan, any Award Agreement and any
other agreement or document executed pursuant to this Plan;

 

 

	 	(b)	 	prescribe, amend and rescind rules and regulations relating to
this Plan or any Award;
	 
	 	(c)	 	select persons to receive Awards;
	 
	 	(d)	 	determine the form and terms of Awards;
	 
	 	(e)	 	determine the number of Shares or other consideration subject
to Awards;
	 
	 	(f)	 	determine whether Awards will be granted singly, in combination
with, in tandem with, in replacement of, or as alternatives to, other Awards
under this Plan or any other incentive or compensation plan of the Company or
any Parent or Subsidiary of the Company;
	 
	 	(g)	 	grant waivers of Plan or Award conditions;
	 
	 	(h)	 	determine the vesting, exercisability and payment of Awards;
	 
	 	(i)	 	correct any defect, supply any omission or reconcile any
inconsistency in this Plan, any Award or any Award Agreement;
	 
	 	(j)	 	determine whether an Award has been earned; and
	 
	 	(k)	 	make all other determinations necessary or advisable for the
administration of this Plan.

          4.2 Committee Discretion. Any determination made by the Committee with respect to any
Award will be made in its sole discretion at the time of grant of the Award or, unless in
contravention of any express term of this Plan or Award, at any later time, and such determination
will be final and binding on the Company and on all persons having an interest in any Award under
this Plan. The Committee may delegate to one or more officers of the Company the authority to
grant an Award under this Plan to Participants who are not Insiders of the Company.

     5. OPTIONS. The Committee may grant Options that are Nonqualified Stock Options
(“NQSOs”) to eligible persons and will determine the number of Shares subject to the Option, the
Exercise Price of the Option, the period during which the Option may be exercised, and all other
terms and conditions of the Option, subject to the following:

          5.1 Form of Option Grant. Each Option granted under this Plan will be evidenced by an
Award Agreement which will expressly identify the Option as a NQSO (“Share Option Agreement”), and,
except as otherwise required by the terms of Section 7 hereof, will be in such form and contain
such provisions (which need not be the same for each Participant) as the Committee may from time to
time approve, and which will comply with and be subject to the terms and conditions of this Plan.

          5.2 Date of Grant. The date of grant of an Option will be the date on which the
Committee makes the determination to grant such Option, unless otherwise specified by the
Committee. The Share Option Agreement and a copy of this Plan will be delivered to the Participant
within a reasonable time after the granting of the Option.

          5.3 Exercise Period. Options may be exercisable within the times or upon the events
determined by the Committee as set forth in the Share Option Agreement governing such Option;
provided, however, that no Option will be exercisable after the expiration of ten
(10) years from the date the Option is granted; and provided further that no Option granted to a
person who is not an employee of the Company or any Parent or Subsidiary of the Company on the date
of grant of that Option will be exercisable after the expiration of five (5) years from the date
the Option is granted. The Committee also may provide for Options to become exercisable at

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one time or from time to time, periodically or otherwise, in such number of Shares or percentage of
Shares as the Committee determines.

          5.4 Exercise Price. The Exercise Price of an Option will be determined by the
Committee when the Option is granted. In no event may the Exercise Price of an Option be less than
the par value of the Shares. Payment for the Shares purchased may be made in accordance with
Section 7 of this Plan.

          5.5 Method of Exercise.

	 	(a)	 	Options may be exercised only by delivery to the Company (or as
the Company may direct) of a written share option exercise agreement (the
“Exercise Agreement”) (in the case of a written Exercise Agreement, in the form
approved by the Board or the Committee, which need not be the same for each
Participant), in each case stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant’s investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price for the number of Shares being
purchased.
	 
	 	(b)	 	A written Exercise Agreement may be communicated electronically
through the use of such security device (including, without limitation, any
logon identifier, password, personal identification number, smartcard, digital
certificate, digital signature, encryption device, electronic key, and/or other
code or any access procedure incorporating any one or more of the foregoing) as
may be designated by the Board or the Committee for use in conjunction with the
Plan from time to time (“Security Device”), or via an electronic page, site, or
environment designated by the Company which is accessible only through the use
of such Security Device, and such written Exercise Agreement shall thereby be
deemed to have been sent by the designated holder of such Security Device. The
Company (or its agent) may accept and act upon any written Exercise Agreement
issued and/or transmitted through the use of the Participant’s Security Device
(whether actually authorized by the Participant or not) as his authentic and
duly authorized Exercise Agreement and the Company (or its agent) may treat
such Exercise Agreement as valid and binding on the Participant notwithstanding
any error, fraud, forgery, lack of clarity or misunderstanding in the terms of
such Exercise Agreement. All written Exercise Agreements issued and/or
transmitted through the use of the Participant’s Security Device (whether
actually authorized by the Participant or not) are irrevocable and binding on
the Participant upon transmission to the Company (or as the Company may direct)
and the Company (or its agent) shall be entitled to effect, perform or process
such Exercise Agreement without the Participant’s further consent and without
further reference to the Participant.
	 
	 	(c)	 	The Company’s records of the Exercise Agreements (whether
delivered or communicated electronically or in printed form), and its record of
any transactions maintained by any relevant person authorized by the Company
relating to or connected with the Plan, whether stored in audio, electronic,
printed or other form, shall be binding and conclusive on the Participant and
shall be conclusive evidence of such Exercise Agreements and/or transactions.
All such records shall be admissible in evidence and, in the case of a written
Exercise Agreement which has been communicated electronically, the Participant
shall not challenge or dispute the admissibility, reliability, accuracy or the
authenticity of the contents of such records merely on the basis that such
records were incorporated and/or set out in electronic form or were produced by
or are the output of a computer system, and the Participant waives any of his
rights (if any) to so object.

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          5.6 Termination. Notwithstanding the exercise periods set forth in the Share Option
Agreement, exercise of an Option will always be subject to the following:

	 	(a)	 	If the Participant is Terminated for any reason except death or
Disability, then the Participant may exercise such Participant’s Options only
to the extent that such Options would have been exercisable upon the
Termination Date no later than three (3) months after the Termination Date (or
such shorter or longer time period not exceeding five (5) years as may be
determined by the Committee), but in any event no later than the expiration
date of the Options.
	 
	 	(b)	 	If the Participant is Terminated because of the Participant’s
death or Disability (or the Participant dies within three (3) months after a
Termination other than for Cause or because of the Participant’s Disability),
then the Participant’s Options may be exercised only to the extent that such
Options would have been exercisable by the Participant on the Termination Date
and must be exercised by the Participant (or the Participant’s legal
representative or authorized assignee) no later than twelve (12) months after
the Termination Date (or such shorter or longer time period not exceeding five
(5) years as may be determined by the Committee), but in any event no later
than the expiration date of the Options.
	 
	 	(c)	 	If the Participant is Terminated for Cause, then the
Participant’s Options shall expire on such Participant’s Termination Date, or
at such later time and on such conditions as are determined by the Committee
(but in any event, no later than the expiration date of the Options).

          5.7 Limitations on Exercise. The Committee may specify a reasonable minimum number of
Shares that may be purchased on any exercise of an Option, provided that such minimum number will
not prevent the Participant from exercising the Option for the full number of Shares for which it
is then exercisable.

          5.8 Modification, Extension or Renewal. The Committee may modify, extend or renew
outstanding Options and authorize the grant of new Options in substitution therefor, provided that
any such action may not, without the written consent of a Participant, impair any of such
Participant’s rights under any Option previously granted, and provided further that
the exercise period of any Option may not in any event be extended beyond the periods specified in
Section 5.3.

     6. SHARE BONUSES. The Committee may grant Share Bonuses and will determine the number
of Shares subject to the Share Bonus, the Purchase Price of the Shares subject to the Share Bonus,
and all other terms and conditions of the Share Bonus, subject to the following:

          6.1 Awards of Share Bonuses. Share Bonuses may be awarded pursuant to an Award
Agreement (the “Share Bonus Agreement”) that will be in such form (which need not be the same for
each Participant) as the Committee will from time to time approve, and will comply with and be
subject to the terms and conditions of this Plan. Share Bonuses provide the Participant with the
right to receive a specified number of Shares at the end of a specified vesting period, or periods,
not to exceed, in the case of Participants who are employees of the Company or any Parent or
Subsidiary of the Company, ten (10) years from the date of grant of the Share Bonus, and, in the
case of Participants who are not employees of the Company or any Parent or Subsidiary of the
Company, five (5) years from the date of grant of the Share Bonus (“Vesting Periods”) upon receipt
of the Purchase Price, and may provide that such number will be increased, or the right to receive
Shares accelerated, upon the satisfaction of specified performance goals. Share Bonuses may vary
from Participant to Participant and between groups of Participants, and may be based upon the
achievement of the Company, Parent or Subsidiary and/or individual performance factors or upon such
other criteria as the Committee may determine.

          6.2 Terms of Share Bonuses. The Committee will determine the number of Shares to be
awarded to the Participant pursuant to a Share Bonus. If the Share Bonus is being earned upon the
satisfaction of

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performance goals pursuant to a Share Bonus Agreement, then the Committee will: (a) determine the
nature, length and starting date of any Performance Period for each Share Bonus; (b) determine the
applicable performance goals and Performance Factors, if any; (c) determine the total number of
Shares that may be awarded to the Participant, (d) determine the number of Shares that will be
issued in each Performance Period and the effect thereon of the satisfaction of the Performance
Factors, including any provision for acceleration of issuance of Shares, or increase in the number
of such Shares, and (e) determine whether any payment will be required for the issuance of such
Shares other than satisfaction of the Performance Factors and the payment of the Purchase Price.

          The Committee shall, as soon as practicable after the end of each Vesting Period or, as the
case may be, Performance Period, determine the extent to which the Share Bonuses have vested or
have been earned, and shall thereafter procure the allotment and issuance to the Participant of the
Shares to the extent vested and/or earned against payment of the Purchase Price. Performance
Periods may overlap and Participants may participate simultaneously with respect to Share Bonuses
that are subject to different Performance Periods and different performance goals and other
criteria. The number of Shares may be fixed or may vary in accordance with such performance goals
and criteria as may be determined by the Committee. The Committee may adjust the performance goals
applicable to the Share Bonuses to take into account changes in law and accounting or tax rules and
to make such adjustments as the Committee deems necessary or appropriate to reflect the impact of
extraordinary or unusual items, events or circumstances to avoid windfalls or hardships.

          6.3 Date of Grant. The date of grant of a Share Bonus will be the date on which the
Committee makes the determination to grant such Share Bonus, unless otherwise specified by the
Committee. The Share Bonus Agreement and a copy of this Plan will be delivered to the Participant
within a reasonable time after the granting of the Share Bonus.

          6.4 Purchase Price. The Purchase Price for each Share subject to a Share Bonus will
be equal to the par value of each such Share. Payment of the Purchase Price for the Shares subject
to a Share Bonus may be made in accordance with Section 7 of this Plan.

          6.5 Termination. The Share Bonus and all of the Company’s obligations and the
Participant’s rights under the Plan and the Share Bonus Agreement (except the right to receive
Shares already vested and Shares already earned), shall terminate on the earlier of the
Participant’s Termination Date or the date when all the Shares have been allotted and issued.

          6.6 Modification, Extension or Renewal. The Committee may modify, extend or renew
outstanding Share Bonuses and authorize the grant of new Share Bonuses in substitution therefor,
provided that any such action may not, without the written consent of a Participant, impair any of
such Participant’s rights under any Share Bonus previously granted.

     7. PAYMENT FOR SHARE PURCHASES.

          7.1 Payment. Payment for Shares purchased pursuant to this Plan may be made in cash
(by check) or, where expressly approved for the Participant by the Committee and where permitted by
law:

	 	(a)	 	by cancellation of indebtedness of the Company to the
Participant;
	 
	 	(b)	 	by waiver of compensation due or accrued to the Participant for
services rendered;
	 
	 	(c)	 	with respect only to purchases upon exercise of an Option, and
provided that a public market for the Company’s Shares exists:

	 	(1)	 	through a “same day sale” commitment from the
Participant and a broker-dealer that is a member of the National
Association of Securities Dealers (an “NASD Dealer”) whereby the
Participant irrevocably elects to exercise the Option and to sell a
portion of the Shares so purchased to pay for the Exercise

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	 	 	 	Price, and whereby the NASD Dealer irrevocably commits upon receipt of such
Shares to forward the Exercise Price directly to the Company; or
	 
	 	(2)	 	through a “margin” commitment from the
Participant and a NASD Dealer whereby the Participant irrevocably
elects to exercise the Option and to pledge the Shares so purchased to
the NASD Dealer in a margin account as security for a loan from the
NASD Dealer in the amount of the Exercise Price, and whereby the NASD
Dealer irrevocably commits upon receipt of such Shares to forward the
Exercise Price directly to the Company;

	 	(d)	 	conversion of a convertible note issued by the Company, the
terms of which provide that it is convertible into Shares issuable pursuant to
the Plan (with the principal amount and any accrued interest being converted
and credited dollar for dollar to the payment of the Exercise Price or, as the
case may be, the Purchase Price);
	 
	 	(e)	 	by the Company, as permitted by applicable laws; or
	 
	 	(f)	 	by any combination of the foregoing.

     8. WITHHOLDING TAXES. Whenever Shares are to be issued in satisfaction of Awards
granted under this Plan, the Company may require the Participant to remit to the Company an amount
sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery
of any certificate or certificates for such Shares. Whenever, under this Plan, payments in
satisfaction of Awards are to be made in cash, such payment will be net of an amount sufficient to
satisfy federal, state, and local withholding tax requirements.

     9. TRANSFERABILITY.

          9.1 Except as otherwise provided in this Section 9, Awards granted under this Plan, and any
interest therein, will not be transferable or assignable by a Participant, and may not be made
subject to execution, attachment or similar process, otherwise than by will or by the laws of
descent and distribution or as determined by the Committee and set forth in the Award Agreement
with respect to Awards. Notwithstanding the foregoing, (i) Participants may transfer or assign
their Awards to Family Members through a gift or a domestic relations order (and not in a transfer
for value), and (ii) if the terms of the applicable instrument evidencing the grant of an Award so
provide, Participants who reside outside of the United States and Singapore may assign their Awards
to a financial institution outside of the United States and Singapore that has been approved by the
Committee, in accordance with the terms of the applicable instrument. The Participant shall be
solely responsible for effecting any such assignment, and for ensuring that such assignment is
valid, legal and binding under all applicable laws. The Committee shall have the discretion to
adopt such rules as it deems necessary to ensure that any assignment is in compliance with all
applicable laws.

          9.2 NQSOs. Unless otherwise restricted by the Committee, an NQSO shall be
exercisable: (i) during the Participant’s lifetime only by (A) the Participant, (B) the
Participant’s guardian or legal representative, (C) a Family Member of the Participant who has
acquired the NQSO by “permitted transfer;” as defined below, (ii) by a transferee that is permitted
pursuant to clause (ii) of Section 9.1, for such period as may be authorized by the terms of the
applicable instrument evidencing the grant of the applicable Option, or by the Committee, and (iii)
after Participant’s death, by the legal representative of the Participant’s heirs or legatees.
“Permitted transfer” means any transfer of an interest in such NQSO by gift or domestic relations
order effected by the Participant during the Participant’s lifetime. A permitted transfer shall
not include any transfer for value; provided that the following shall be permitted transfers and
shall not be considered to be transfers for value: (a) a transfer under a domestic relations order
in settlement of marital property rights or (b) a transfer to an entity in which more than fifty
percent of the voting interests are owned by Family Members or the Participant in exchange for an
interest in that entity.

     10. PRIVILEGES OF SHARE OWNERSHIP. No Participant will have any of the rights of a
shareholder with respect to any Shares until the Shares are issued to the Participant. After
Shares are issued to the

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Participant, the Participant will be a shareholder and have all the rights of a shareholder with
respect to such Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares.

     11. CERTIFICATES. All certificates for Shares or other securities delivered under
this Plan will be subject to such share transfer orders, legends and other restrictions as the
Committee may deem necessary or advisable, including restrictions under any applicable federal,
state or foreign securities law, or any rules, regulations and other requirements of the SEC or any
stock exchange or automated quotation system upon which the Shares may be listed or quoted.

     12. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from time to
time and subject to compliance with all applicable laws and regulations, authorize the Company,
with the consent of the respective Participants, to issue new Awards in exchange for the surrender
and cancellation of any or all outstanding Awards. The Committee may at any time and subject to
compliance with all applicable laws and regulations buy from a Participant an Award previously
granted with payment in cash, Shares or other consideration, based on such terms and conditions as
the Committee and the Participant may agree.

     13. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not be effective
unless such Award is in compliance with all applicable federal and state securities laws, rules and
regulations of any governmental body, and the requirements of any stock exchange or automated
quotation system upon which the Shares may then be listed or quoted, as they are in effect on the
date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any
other provision in this Plan, the Company will have no obligation to issue or deliver certificates
for Shares under this Plan prior to: (a) obtaining any approvals from governmental agencies that
the Company determines are necessary or advisable; and/or (b) completion of any registration or
other qualification of such Shares under any state or federal law or ruling of any governmental
body that the Company determines to be necessary or advisable. The Company will be under no
obligation to register the Shares with the SEC or to effect compliance with the registration,
qualification or listing requirements of any state securities laws, stock exchange or automated
quotation system, and the Company will have no liability for any inability or failure to do so.

     14. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted under this
Plan will confer or be deemed to confer on any Participant any right to continue in the employ of,
or to continue any other relationship with, the Company or any Parent or Subsidiary of the Company
or limit in any way the right of the Company or any Parent or Subsidiary of the Company to
terminate Participant’s employment or other relationship at any time, with or without cause.

     15. CORPORATE TRANSACTIONS.

          15.1 Assumption or Replacement of Awards by Successor. In the event of (a) a
dissolution or liquidation of the Company, (b) a merger or consolidation in which the Company is
not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary,
a reincorporation of the Company in a different jurisdiction, or other transaction in which there
is no substantial change in the shareholders of the Company or their relative share holdings and
the Awards granted under this Plan are assumed, converted or replaced by the successor corporation,
which assumption will be binding on all Participants), (c) a merger in which the Company is the
surviving corporation but after which the shareholders of the Company immediately prior to such
merger (other than any shareholder that merges, or which owns or controls another corporation that
merges, with the Company in such merger) cease to own their shares or other equity interest in the
Company, (d) the sale of substantially all of the assets of the Company, or (e) the acquisition,
sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or
similar transaction (each, a “Corporate Transaction”), each Option which is at the time outstanding
under this Plan shall automatically accelerate so that each such Option shall, immediately prior to
the specified effective date for the Corporate Transaction, become fully exercisable with respect
to the total number of Shares at the time subject to such Option and may be exercised for all or
any portion of such Shares. However, subject to the specific terms of a Participant’s Award
Agreement, an outstanding Option under this Plan shall not so accelerate if and to the
extent: (i) such Option is, in connection with the Corporate Transaction, either to be assumed by
the successor corporation or parent thereof or to be replaced with a comparable Option to purchase
shares of the

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capital share of the successor corporation or parent thereof, (ii) such Option is to be replaced
with a cash incentive program of the successor corporation which preserves the Option spread
existing at the time of the Corporate Transaction and provides for subsequent payout in accordance
with the same vesting schedule applicable to such Option or (iii) the acceleration of such Option
is subject to other limitations imposed by the Committee at the time of the Option grant. The
determination of Option comparability under clause (i) above shall be made by the Committee, and
its determination shall be final, binding and conclusive.

          15.2 Other Treatment of Awards. Subject to any greater rights granted to Participants
under the foregoing provisions of this Section 15 or other specific terms of a Participant’s Award
Agreement, in the event of the occurrence of any Corporate Transaction described in Section 15.1,
any outstanding Awards will be treated as provided in the applicable agreement or plan of merger,
consolidation, dissolution, liquidation, or sale of assets.

          15.3 Assumption of Awards by the Company. The Company, from time to time, also may
substitute or assume outstanding awards granted by another company, whether in connection with an
acquisition of such other company or otherwise, by either; (a) granting an Award under this Plan in
substitution of such other company’s award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award granted under this
Plan. Such substitution or assumption will be permissible if the holder of the substituted or
assumed award would have been eligible to be granted an Award under this Plan if the other company
had applied the rules of this Plan to such grant. In the event the Company assumes an award
granted by another company, the terms and conditions of such award will remain unchanged
(except that the Exercise Price and the number and nature of Shares issuable upon exercise
of any such Option will be adjusted appropriately pursuant to Section 424(a) of the Code). In the
event the Company elects to grant a new Option rather than assuming an existing Option, such new
Option may be granted with a similarly adjusted Exercise Price.

     16. ADOPTION. This Plan will become effective on the date on which the Board adopts
the Plan (the “Effective Date”).

     17. TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided herein, this
Plan will terminate ten (10) years from the date this Plan is adopted by the Board. This Plan and
all agreements thereunder shall be governed by and construed in accordance with the laws of the
State of California.

     18. AMENDMENT OR TERMINATION OF PLAN. The Board has complete and exclusive power and
authority to amend or modify the Plan (or any component thereof) in any or all respects whatsoever.
However, no such amendment or modification shall adversely affect rights and obligations with
respect to Awards at the time outstanding under the Plan, unless the Participant consents to such
amendment.

          The Board may at any time terminate or amend this Plan in any respect, including without
limitation amendment of any form of Award Agreement or instrument to be executed pursuant to this
Plan.

     19. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the Board nor
any provision of this Plan will be construed as creating any limitations on the power of the Board
to adopt such additional compensation arrangements as it may deem desirable, including, without
limitation, the granting of share options and bonuses otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific cases.

     20. DEFINITIONS. As used in this Plan, the following terms will have the following
meanings:

          “Award” means any Options or Share Bonuses granted under this Plan.

          “Award Agreement” means, with respect to each Award, the signed written agreement between the
Company and the Participant setting forth the terms and conditions of the Award.

          “Board” means the Board of Directors of the Company.

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          “Cause” means (a) the commission of an act of theft, embezzlement, fraud, dishonesty, (b) a
breach of fiduciary duty to the Company or a Parent or Subsidiary of the Company or (c) a failure
to materially perform the customary duties of the employee’s employment.

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

          “Committee” means the Compensation Committee of the Board.

          “Company” means Flextronics International Ltd. or any successor corporation.

          “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Exercise Price” means the price at which a holder of an Option may purchase the Shares
issuable upon exercise of the Option.

          “Fair Market Value” means, as of any date, the value of the Shares determined as follows:

	 	(a)	 	if such Shares are then quoted on the Nasdaq National Market,
the closing price of such Shares on the Nasdaq National Market on the date of
determination as reported in The Wall Street Journal;
	 
	 	(b)	 	if such Shares are publicly traded and are then listed on a
national securities exchange, the closing price of such Shares on the date of
determination on the principal national securities exchange on which the Shares
are listed or admitted to trading as reported in The Wall Street
Journal;
	 
	 	(c)	 	if such Shares are publicly traded but are not quoted on the
Nasdaq National Market nor listed or admitted to trading on a national
securities exchange, the average of the closing bid and asked prices on the
date of determination as reported in The Wall Street Journal; or
	 
	 	(d)	 	if none of the foregoing is applicable, by the Committee in
good faith.

          “Family Member” includes any of the following:

	 	(a)	 	child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the
Participant, including any such person with such relationship to the
Participant by adoption;
	 
	 	(b)	 	any person (other than a tenant or employee) sharing the
Participant’s household;
	 
	 	(c)	 	a trust in which the persons in (a) and (b) have more than
fifty percent of the beneficial interest;
	 
	 	(d)	 	a foundation in which the persons in (a) and (b) or the
Participant control the management of assets; or
	 
	 	(e)	 	any other entity in which the persons in (a) and (b) or the
Participant own more than fifty percent of the voting interest.

9

 

          “Insider” means an officer or director of the Company or any other person whose transactions
in the Company’s Shares are subject to Section 16 of the Exchange Act.

          “Option” means an award of an option to purchase Shares pursuant to Sections 5.

          “Parent” means any corporation (other than the Company) in an unbroken chain of corporations
ending with the Company if each of such corporations other than the Company owns shares possessing
more than 50% of the total combined voting power of all classes of shares in one of the other
corporations in such chain.

          “Participant” means a person who receives an Award under this Plan.

          “Performance Factors” means such factors as may be selected by the Committee, in it sole
discretion, including, but not limited to, the following measures, to determine whether the
performance goals established by the Committee and applicable to Awards have been satisfied:

	 	(a)	 	Net revenue and/or net revenue growth;
	 
	 	(b)	 	Earnings before income taxes and amortization and/or earnings
before income taxes and amortization growth;
	 
	 	(c)	 	Operating income and/or operating income growth;
	 
	 	(d)	 	Net income and/or net income growth;
	 
	 	(e)	 	Earnings per share and/or earnings per share growth;
	 
	 	(f)	 	Total shareholder return and/or total shareholder return growth;
	 
	 	(g)	 	Return on equity;
	 
	 	(h)	 	Operating cash flow return on income;
	 
	 	(i)	 	Adjusted operating cash flow return on income;
	 
	 	(j)	 	Economic value added;
	 
	 	(k)	 	Cash conversion cycle;
	 
	 	(l)	 	Return on Invested Capital; and
	 
	 	(k)	 	Individual confidential business objectives.

It is in the sole discretion of the Committee to determine if any extraordinary, unusual or
one-time charges are to be included or excluded in such Performance Factors.

          “Performance Period” means the period of service determined by the Committee, not to
exceed five years, during which years of service or performance is to be measured for Share
Bonuses.

          “Plan” means this Flextronics International Ltd. 2002 Interim Incentive Plan, as amended from
time to time.

          “Purchase Price” means the price at which a holder of a Share Bonus may purchase the Shares
issuable pursuant to the Share Bonus.

10

 

          “SEC” means the Securities and Exchange Commission.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Shares” means ordinary shares of par value S$0.01 each in the capital of the Company reserved
for issuance under this Plan, as adjusted pursuant to Sections 2 and 15, and any successor
security.

          “Share Bonus” means an award of Shares pursuant to Section 6.

          “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if each of the corporations other than the last corporation
in the unbroken chain owns shares possessing more than 50% of the total combined voting power of
all classes of shares in one of the other corporations in such chain.

          “Termination” or “Terminated” means, for purposes of this Plan with respect to a Participant,
that the Participant has for any reason ceased to provide services as an employee, officer or
director to the Company or a Parent or Subsidiary of the Company. An employee will not be deemed
to have ceased to provide services in the case of (i) sick leave, (ii) military leave, or (iii) any
other leave of absence approved by the Committee. In the case of any employee on an approved leave
of absence, the Committee may make such provisions respecting suspension of vesting of the Award
while on leave from the employ of the Company or a Subsidiary as it may deem appropriate, except
that in no event may an Option be exercised after the expiration of the term set forth in the Share
Option Agreement. The Committee will have sole discretion to determine whether a Participant has
ceased to provide services and the effective date on which the Participant ceased to provide
services (the “Termination Date”).

     21. OPTION EXCHANGE PROGRAM.

          Notwithstanding any other provision of this Plan to the contrary, upon approval of this
amendment by the Company’s shareholders, the Board, the Committee or any designee of the Board or
the Committee may provide for, and the Company may implement, a one-time Option exchange offer,
pursuant to which certain outstanding Options would, at the election of the holder of such Option,
be surrendered to the Company for cancellation, whereupon the surrendered Options shall terminate
and have no legal effect whatsoever, in exchange for the grant of a lesser number of new Options,
which new Options may have reduced Exercise Prices and different vesting and expiration periods
from the surrendered Options; provided, however, that such offer shall be commenced within twelve
months of the date of such shareholder approval. For the avoidance of doubt, the surrendering and
cancellation of the Options shall not at any time, result in the Company acquiring, directly or
indirectly, a right or interest in the surrendered Options.

11exv10w03

Exhibit 10.03

FLEXTRONICS INTERNATIONAL LTD.

2004 Award Plan for New Employees

As Adopted October 21, 2004 and as amended through July 13, 2009

     1. PURPOSE. The purpose of this Plan is to provide incentives to attract, retain and motivate
eligible persons whose present and potential contributions are important to the success of the
Company, its Parent and Subsidiaries, by offering them an opportunity to participate in the
Company’s future performance through grants of Awards. Capitalized terms not defined in the text
are defined in Section 20.

     2. SHARES SUBJECT TO THE PLAN.

          2.1 Number of Shares Available. Subject to Sections 2.2 and 15, the total number of
Shares reserved and available for grant and issuance pursuant to this Plan will be ten million
(10,000,000) Shares plus shares that are subject to issuance upon exercise of an Award but cease to
be subject to such Award for any reason other than exercise of such Award. At all times the Company
shall reserve and keep available a sufficient number of Shares as shall be required to satisfy the
requirements of all outstanding Awards granted under this Plan. No more than the lesser of (i) the
number of Shares reserved hereunder, or (ii) seven million (7,000,000) Shares, shall be available
to be issued and outstanding at any point in time to employees in the Canadian province of Quebec.

          2.2 Adjustment of Shares. Should any change be made to the Shares issuable under the
Plan by reason of any stock split, stock dividend, recapitalization, combination of shares,
exchange of shares or other change affecting the outstanding Shares as a class without the
Company’s receipt of consideration, then appropriate adjustments shall be made to (i) the maximum
number and/or class of securities issuable under the Plan, and (ii) the number and/or class of
securities and price per Share in effect under each Award outstanding under Sections 5 and 7. Such
adjustments to the outstanding Awards are to be effected in a manner which shall preclude the
enlargement or dilution of rights and benefits under such Awards, provided, however, that (i)
fractions of a Share will not be issued but will be replaced by a cash payment equal to the Fair
Market Value of such fraction of a Share, as determined by the Committee, and (ii) no such
adjustment shall be made if as a result, the Exercise Price would fall below the par value of a
Share and if such adjustment would but for this paragraph (ii) result in the Exercise Price being
less than the par value of a Share, the Exercise Price payable shall be the par value of a Share.
The adjustments determined by the Committee shall be final, binding and conclusive.

     3. ELIGIBILITY. Awards may be granted only to persons who (a) were not previously an employee
or director of the Company or any Parent or Subsidiary of the Company or (b) have either (i)
completed a period of bona fide non-employment by the Company, and any Parent or Subsidiary of the
Company, of at least 1 year, or (ii) are returning to service as an employee of the Company, or any
Parent or Subsidiary of the Company, after a period of bona fide non-employment of less than 1 year
due to the Company’s acquisition of such person’s employer; and then only as an incentive to such
persons entering into employment with the Company or any Parent or Subsidiary of the Company. A
person eligible for an Award under this Plan may be granted more than one Award under this Plan.

     4. ADMINISTRATION.

          4.1 Committee Authority. This Plan will be administered by the Committee or by the
Board acting as the Committee. Subject to the general purposes, terms and conditions of this Plan,
and to the direction of the Board, the Committee will have full power to implement and carry out
this Plan. Among its powers the Committee will have the authority to:

     (a) construe and interpret this Plan, any Award Agreement and any other agreement or
document executed pursuant to this Plan;

 

 

     (b) prescribe, amend and rescind rules and regulations relating to this Plan or any
Award;

     (c) select persons to receive Awards;

     (d) determine the form and terms of Awards;

     (e) determine the number of Shares or other consideration subject to Awards;

     (f) determine whether Awards will be granted singly, in combination with, in tandem
with, in replacement of, or as alternatives to, other Awards under this Plan or any other
incentive or compensation plan of the Company or any Parent or Subsidiary of the Company;

     (g) grant waivers of Plan or Award conditions;

     (h) determine the vesting, exercisability and payment of Awards;

     (i) correct any defect, supply any omission or reconcile any inconsistency in this
Plan, any Award or any Award Agreement;

     (j) determine whether an Award has been earned; and

     (k) make all other determinations necessary or advisable for the administration of this
Plan.

          4.2 Committee Discretion. Any determination made by the Committee with respect to any
Award will be made in its sole discretion at the time of grant of the Award or, unless in
contravention of any express term of this Plan or Award, at any later time, and such determination
will be final and binding on the Company and on all persons having an interest in any Award under
this Plan.

          4.3 Committee Composition. The grant of any Award shall not be effective unless: (a)
if the grant is made by the Board, then it must be approved by a majority of the Independent
Directors on the Board; and (b) if the grant is made by the Committee, then the Committee must be
comprised solely of Independent Directors (except as otherwise permitted under the rules of the
NASD).

     5. OPTIONS. The Committee may grant Options (which will be nonqualified stock options
(“NQSOs”)) to eligible persons and will determine the number of Shares subject to the Option, the
Exercise Price of the Option, the period during which the Option may be exercised, and all other
terms and conditions of the Option, subject to the following:

          5.1 Form of Option Grant. Each Option granted under this Plan will be evidenced by an
Award Agreement which will expressly identify the Option as an NQSO (“STOCK OPTION AGREEMENT”), and
will be in such form and contain such provisions (which need not be the same for each Participant)
as the Committee may from time to time approve, and which will comply with and be subject to the
terms and conditions of this Plan.

          5.2 Date of Grant. The date of grant of an Option will be the date on which the
Committee makes the determination to grant such Option, unless otherwise specified by the
Committee. The Stock Option Agreement and a copy of this Plan will be delivered to the Participant
within a reasonable time after the granting of the Option.

          5.3 Exercise Period. Options may be exercisable within the times or upon the events
determined by the Committee as set forth in the Stock Option Agreement governing such Option;
provided, however, that no Option will be exercisable after the expiration of ten (10) years from
the date the Option is granted (five (5) years from the date the Option is granted in the case of
any Option granted to a person who is not an employee of the Company or any Parent or Subsidiary of
the Company on the date of grant of that Option). The

2

 

Committee also may provide for Options to become exercisable at one time or from time to time,
periodically or otherwise, in such number of Shares or percentage of Shares as the Committee
determines.

          5.4 Exercise Price. The Exercise Price of an Option will be determined by the
Committee when the Option is granted; provided that in no event may the Exercise Price of an Option
be less than the par value of the Shares.

          5.5 Method of Exercise.

     (a) Options may be exercised only by delivery to the Company (or as the Company may
direct) of a written stock option exercise agreement (the “Exercise Agreement”) (in the case
of a written Exercise Agreement, in the form approved by the Board or the Committee, which
need not be the same for each Participant), in each case stating the number of Shares being
purchased, the restrictions imposed on the Shares purchased under such Exercise Agreement,
if any, and such representations and agreements regarding Participant’s investment intent
and access to information and other matters, if any, as may be required or desirable by the
Company to comply with applicable securities laws, together with payment in full of the
Exercise Price for the number of Shares being purchased.

     (b) A written Exercise Agreement may be communicated electronically through the use of
such security device (including, without limitation, any logon identifier, password,
personal identification number, smartcard, digital certificate, digital signature,
encryption device, electronic key, and/or other code or any access procedure incorporating
any one or more of the foregoing) as may be designated by the Board or the Committee for use
in conjunction with the Plan from time to time (“Security Device”), or via an electronic
page, site, or environment designated by the Company which is accessible only through the
use of such Security Device, and such written Exercise Agreement shall thereby be deemed to
have been sent by the designated holder of such Security Device. The Company (or its agent)
may accept and act upon any written Exercise Agreement issued and/or transmitted through the
use of the Participant’s Security Device (whether actually authorized by the Participant or
not) as his authentic and duly authorized Exercise Agreement and the Company (or its agent)
may treat such Exercise Agreement as valid and binding on the Participant notwithstanding
any error, fraud, forgery, lack of clarity or misunderstanding in the terms of such Exercise
Agreement. All written Exercise Agreements issued and/or transmitted through the use of the
Participant’s Security Device (whether actually authorized by the Participant or not) are
irrevocable and binding on the Participant upon transmission to the Company (or as the
Company may direct) and the Company (or its agent) shall be entitled to effect, perform or
process such Exercise Agreement without the Participant’s further consent and without
further reference to the Participant.

     (c) The Company’s records of the Exercise Agreements (whether delivered or communicated
electronically or in printed form), and its record of any transactions maintained by any
relevant person authorized by the Company relating to or connected with the Plan, whether
stored in audio, electronic, printed or other form, shall be binding and conclusive on the
Participant and shall be conclusive evidence of such Exercise Agreements and/or
transactions. All such records shall be admissible in evidence and, in the case of a written
Exercise Agreement which has been communicated electronically, the Participant shall not
challenge or dispute the admissibility, reliability, accuracy or the authenticity of the
contents of such records merely on the basis that such records were incorporated and/or set
out in electronic form or were produced by or are the output of a computer system, and the
Participant waives any of his rights (if any) to so object.

          5.6 Termination. Notwithstanding the exercise periods set forth in the Stock Option
Agreement, exercise of an Option will always be subject to the following:

     (a) If the Participant is Terminated for any reason except death or Disability, then
the Participant may exercise such Participant’s Options only to the extent that such Options
would have been exercisable upon the Termination Date no later than three (3) months after
the Termination Date (or such shorter or

3

 

longer time period not exceeding five (5) years as may be determined by the Committee),
but in any event no later than the expiration date of the Options.

     (b) If the Participant is Terminated because of the Participant’s death or Disability
(or the Participant dies within three (3) months after a Termination other than for Cause or
because of the Participant’s Disability), then the Participant’s Options may be exercised
only to the extent that such Options would have been exercisable by the Participant on the
Termination Date and must be exercised by the Participant (or the Participant’s legal
representative or authorized assignee) no later than twelve (12) months after the
Termination Date (or such shorter or longer time period not exceeding five (5) years as may
be determined by the Committee), but in any event no later than the expiration date of the
Options.

     (c) If the Participant is terminated for Cause, then the Participant’s Options shall
expire on such Participant’s Termination Date, or at such later time and on such conditions
as are determined by the Committee (but in any event, no later than the expiration date of
the Options).

          5.7 Limitations on Exercise. The Committee may specify a reasonable minimum number
of Shares that may be purchased on any exercise of an Option, provided that such minimum number
will not prevent Participant from exercising the Option for the full number of Shares for which it
is then exercisable.

          5.8 Modification, Extension or Renewal. The Committee may modify, extend or renew
outstanding Options and authorize the grant of new Options in substitution therefor, provided that
any such action may not, without the written consent of a Participant, impair any of such
Participant’s rights under any Option previously granted, and provided further that the exercise
period of any Option may not in any event be extended beyond the period specified in Section 5.3.

     6. PAYMENT FOR SHARE PURCHASES.

     6.1 Payment. Subject to compliance with all applicable laws and regulations, payment
for Shares purchased pursuant to this Plan may be made in cash (by check) or, where expressly
approved for the Participant by the Committee and where permitted by law:

     (a) by cancellation of indebtedness of the Company to the Participant;

     (b) by waiver of compensation due or accrued to the Participant for services rendered;

     (c) with respect only to purchases upon exercise of an Option, and provided that a
public market for the Company’s Shares exists: through a “same day sale” commitment from
the Participant and a broker-dealer that is a member of the National Association of
Securities Dealers (an “NASD DEALER”) whereby the Participant irrevocably elects to exercise
the Option and to sell a portion of the Shares so purchased to pay for the Exercise Price,
and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the
Exercise Price directly to the Company; or

     (d) conversion of a convertible note issued by the Company, the terms of which provide
that it is convertible into Shares issuable pursuant to the Plan (with the principal amount
and any accrued interest being converted and credited dollar for dollar to the payment of
the Exercise Price); or

     (e) by any combination of the foregoing.

     7. TRANSFERABILITY/EXERCISABILITY.

          7.1 Transfer and Assignment. No Option granted under this Plan, or any interest
therein, or any right to receive a Stock Bonus (prior to the issuance of Shares thereunder) will be
transferable or assignable by a Participant, and no such Option or right may be made subject to
execution, attachment or similar process, otherwise

4

 

than by will or by the laws of descent and distribution or as determined by the Committee and
set forth in the applicable Award or Stock Option Agreement. Notwithstanding the foregoing, and
subject to compliance with all applicable laws and regulations, (i) Participants may transfer or
assign their Options to Family Members through “permitted transfer;” as defined below, and (ii) if
the terms of the applicable instrument evidencing the grant of an Option so provide, Participants
who reside outside of the United States and Singapore may assign their Options to a financial
institution outside of the United States and Singapore that has been approved by the Committee, in
accordance with the terms of the applicable instrument. The Participant shall be solely responsible
for effecting any such assignment, and for ensuring that such assignment is valid, legal and
binding under all applicable laws and regulations. The Committee shall have the discretion to adopt
such rules as it deems necessary to ensure that any assignment is in compliance with all applicable
laws and regulations.

          7.2 Exercisability. Unless otherwise restricted by the Committee, an NQSO shall be
exercisable: (i) during the Participant’s lifetime only by (A) the Participant, (B) the
Participant’s guardian or legal representative, (C) a Family Member of the Participant who has,
subject to compliance with all applicable laws and regulations, acquired the NQSO by “permitted
transfer;” as defined below, and (ii) after Participant’s death, by the legal representative of the
Participant’s heirs or legatees.

          7.3 “Permitted transfer” means any transfer of an interest in such NQSO by gift or
domestic relations order effected by the Participant during the Participant’s lifetime. A permitted
transfer shall not include any transfer for value; provided that the following shall, subject to
compliance with all applicable laws and regulations, be permitted transfers and shall not be
considered to be transfers for value: (a) a transfer under a domestic relations order in settlement
of marital property rights or (b) a transfer to an entity in which more than fifty percent of the
voting interests are owned by Family Members or the Participant in exchange for an interest in that
entity.

     8. STOCK BONUSES. A Stock Bonus is a grant of Shares by the Company to an individual who has
satisfied the terms and conditions set by the Committee on the making of such grant. The Committee
will determine to whom a grant may be made, the number of Shares that may be granted, the
restrictions to the making of such grant, and all other terms and conditions of the Stock Bonus.
The conditions to grant may be based upon completion of a specified number of years of service with
the Company or upon completion of the performance goals as set out by the Committee. Grants of
Stock Bonuses may vary from Participant to Participant and between groups of Participants. Prior
to the grant of a Stock Bonus, the Committee shall: (a) determine the nature, length and starting
date of any Performance Period that may be a condition precedent to grant of a Stock Bonus; (b)
select from among the Performance Factors to be used to measure performance goals, if any; and (c)
determine the number of Shares that may be awarded to the Participant. Prior to the grant of any
Stock Bonus, the Committee shall determine the extent to which such Stock Bonus has been earned.
Performance Periods may overlap and Participants may participate simultaneously with respect to
Stock Bonuses that are subject to different Performance Periods and having different performance
goals and other criteria. Participants shall be required to pay the par value for any Shares issued
as a Stock Bonus.

     9. WITHHOLDING TAXES.

          9.1 Withholding Generally. Whenever Shares are to be issued in satisfaction of Awards
granted under this Plan, the Company may require the Participant to remit to the Company an amount
sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery
of any certificate or certificates for such Shares. Whenever, under this Plan, payments in
satisfaction of Awards are to be made in cash, such payment will be net of an amount sufficient to
satisfy federal, state, and local withholding tax requirements.

          9.2 Stock Withholding. When, under applicable tax laws, a Participant incurs tax
liability in connection with the exercise or vesting of any Award that is subject to tax
withholding and the Participant is obligated to pay the Company the amount required to be withheld,
the Committee may in its sole discretion, and subject to compliance with all applicable laws and
regulations, allow the Participant to satisfy the minimum withholding tax obligation by electing to
have the Company withhold from the Shares to be issued that number of Shares having a Fair Market
Value equal to the minimum amount required to be withheld, determined on the date that the amount
of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld
for

5

 

this purpose will be made in accordance with the requirements established by the Committee and
will be in writing in a form acceptable to the Committee.

     10. PRIVILEGES OF STOCK OWNERSHIP. No Participant will have any of the rights of a
shareholder with respect to any Shares until the Shares are issued to the Participant. After Shares
are issued to the Participant, the Participant will be a shareholder and have all the rights of a
shareholder with respect to such Shares, including the right to vote and receive all dividends or
other distributions made or paid with respect to such Shares.

     11. CERTIFICATES. All certificates for Shares or other securities delivered under this Plan
will be subject to such stock transfer orders, legends and other restrictions as the Committee may
deem necessary or advisable, including restrictions under any applicable federal, state or foreign
securities law, or any rules, regulations and other requirements of the SEC or any stock exchange
or automated quotation system upon which the Shares may be listed or quoted.

     12. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from time to time and
subject to compliance with all applicable laws and regulations, authorize the Company, with the
consent of the respective Participants, to issue new Awards in exchange for the surrender and
cancellation of any or all outstanding Awards. The Committee may at any time and subject to
compliance with all applicable laws and regulations buy from a Participant an Award previously
granted with payment in cash, Shares or other consideration, based on such terms and conditions as
the Committee and the Participant may agree.

     13. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not be effective unless
such Award is in compliance with all applicable foreign, federal and state securities laws, rules
and regulations of any governmental body, and the requirements of any stock exchange or automated
quotation system upon which the Shares may then be listed or quoted, as they are in effect on the
date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any
other provision in this Plan, the Company will have no obligation to issue or deliver certificates
for Shares under this Plan prior to: (a) obtaining any approvals from governmental agencies that
the Company determines are necessary or advisable; and/or (b) completion of any registration or
other qualification of such Shares under any law or ruling of any governmental body that the
Company determines to be necessary or advisable. The Company will be under no obligation to
register the Shares with the SEC or to effect compliance with the registration, qualification or
listing requirements of any state securities laws, stock exchange or automated quotation system,
and the Company will have no liability for any inability or failure to do so.

     14. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted under this Plan will
confer or be deemed to confer on any Participant any right to continue in the employ of, or to
continue any other relationship with, the Company or any Parent or Subsidiary of the Company or
limit in any way the right of the Company or any Parent or Subsidiary of the Company to terminate
Participant’s employment or other relationship at any time, with or without cause.

     15. CORPORATE TRANSACTIONS.

          15.1 Assumption or Replacement of Awards by Successor. In the event of (a) a
dissolution or liquidation of the Company, (b) a merger or consolidation in which the Company is
not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary,
a reincorporation of the Company in a different jurisdiction, or other transaction in which there
is no substantial change in the shareholders of the Company or their relative share holdings and
the Awards granted under this Plan are assumed, converted or replaced by the successor corporation,
which assumption will be binding on all Participants), (c) a merger in which the Company is the
surviving corporation but after which the shareholders of the Company immediately prior to such
merger (other than any shareholder that merges, or which owns or controls another corporation that
merges, with the Company in such merger) cease to own their shares or other equity interest in the
Company, (d) the sale of substantially all of the assets of the Company, or (e) the acquisition,
sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or
similar transaction (each, a “CORPORATE TRANSACTION”), each Option which is at the time outstanding
under this Plan shall automatically accelerate so that each such Option shall, immediately prior

6

 

to the specified effective date for the Corporate Transaction, become fully exercisable with
respect to the total number of Shares at the time subject to such Option and may be exercised for
all or any portion of such Shares. However, subject to the specific terms of a Participant’s Award
Agreement, an outstanding Option under this Plan shall not so accelerate if and to the extent: (i)
such Option is, in connection with the Corporate Transaction, either to be assumed by the successor
corporation or parent thereof or to be replaced with a comparable Option to purchase shares of the
capital stock of the successor corporation or parent thereof, (ii) such Option is to be replaced
with a cash incentive program of the successor corporation which preserves the Option spread
existing at the time of the Corporate Transaction and provides for subsequent payout in accordance
with the same vesting schedule applicable to such Option or (iii) the acceleration of such Option
is subject to other limitations imposed by the Committee at the time of the Option grant. The
determination of Option comparability under clause (i) above shall be made by the Committee, and
its determination shall be final, binding and conclusive.

          15.2 Other Treatment of Awards. Subject to any greater rights granted to Participants
under the foregoing provisions of this Section 15 or other specific terms of a Participant’s Award
Agreement, in the event of the occurrence of any Corporate Transaction described in Section 15.1,
any outstanding Awards will be treated as provided in the applicable agreement or plan of merger,
consolidation, dissolution, liquidation, or sale of assets.

          15.3 Assumption of Awards by the Company. The Company, from time to time, also may
substitute or assume outstanding awards granted by another company, whether in connection with an
acquisition of such other company or otherwise, by either; (a) granting an Award under this Plan in
substitution of such other company’s award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award granted under this
Plan. Such substitution or assumption will be permissible if the holder of the substituted or
assumed award would have been eligible to be granted an Award under this Plan if the other company
had applied the rules of this Plan to such grant. In the event the Company assumes an award granted
by another company, the terms and conditions of such award will remain unchanged (except that the
Exercise Price and the number and nature of Shares issuable upon exercise of any such Option will
be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the Company elects
to grant a new Option rather than assuming an existing Option, such new Option may be granted with
a similarly adjusted Exercise Price.

     16. EFFECTIVE DATE AND SHAREHOLDER APPROVAL. This Plan may be submitted by the Board for
approval by the shareholders of the Company (excluding Shares issued pursuant to this Plan that are
still held by Participants as of the record date established for purposes of such approval),
consistent with applicable laws, at any time after the date this Plan is adopted by the Board.

     17. TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided herein, this Plan will
terminate ten (10) years from the date this Plan is adopted by the Board or, if later, the date of
shareholder approval. This Plan and all agreements thereunder shall be governed by and construed in
accordance with the laws of the State of California.

     18. AMENDMENT OR TERMINATION OF PLAN. The Board has complete and exclusive power and
authority to amend or modify the Plan (or any component thereof) in any respect, or all respects,
whatsoever. However, no such amendment or modification shall adversely affect rights and
obligations with respect to Options at the time outstanding under the Plan, unless the Participant
consents to such amendment. The Board may at any time terminate or amend this Plan in any respect,
including without limitation amendment of any form of Award Agreement or instrument to be executed
pursuant to this Plan.

     19. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the Board, the
submission of this Plan to the shareholders of the Company for approval, nor any provision of this
Plan will be construed as creating any limitations on the power of the Board to adopt such
additional compensation arrangements as it may deem desirable, including, without limitation, the
granting of stock options and bonuses otherwise than under this Plan, and such arrangements may be
either generally applicable or applicable only in specific cases.

     20. DEFINITIONS. As used in this Plan, the following terms will have the following meanings:

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     “AWARD” means any Options or shares from Stock Bonuses granted under this Plan.

     “AWARD AGREEMENT” means, with respect to each Award, the signed written agreement between the
Company and the Participant setting forth the terms and conditions of the Award.

     “BOARD” means the Board of Directors of the Company.

     “CAUSE” means (a) the commission of an act of theft, embezzlement, fraud, dishonesty, (b) a
breach of fiduciary duty to the Company or a Parent or Subsidiary of the Company or (c) a failure
to materially perform the customary duties of the employee’s employment.

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

     “COMMITTEE” means the Board or an “independent compensation committee” (as such term is
defined for purposes of the rules of the National Association of Securities Dealers, Inc.).

     “COMPANY” means Flextronics International Ltd. or any successor corporation.

     “DISABILITY” means total and permanent disability as defined in Section 22(e)(3) of the Code.

     “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended.

     “EXERCISE PRICE” means the price at which a holder of an Option may purchase the Shares
issuable upon exercise of the Option.

     “FAIR MARKET VALUE” means, as of any date, the value of the Shares determined as follows:

     (a) if such Shares are then quoted on the Nasdaq National Market, the closing price of
such Shares on the Nasdaq National Market on the date of determination as reported in The
Wall Street Journal;

     (b) if such Shares are publicly traded and are then listed on a national securities
exchange, the closing price of such Shares on the date of determination on the principal
national securities exchange on which the Shares are listed or admitted to trading as
reported in The Wall Street Journal;

     (c) if such Shares are publicly traded but are not quoted on the Nasdaq National Market
nor listed or admitted to trading on a national securities exchange, the average of the
closing bid and asked prices on the date of determination as reported in The Wall Street
Journal; or

     (d) if none of the foregoing is applicable, by the Committee in good faith.

     “FAMILY MEMBER” includes any of the following:

     (a) child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former
spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law of the Participant, including any such person with such
relationship to the Participant by adoption;

     (b) any person (other than a tenant or employee) sharing the Participant’s household;

     (c) a trust in which the persons in (a) and (b) have more than fifty percent of the
beneficial interest;

     (d) a foundation in which the persons in (a) and (b) or the Participant control the
management of assets; or

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     (e) any other entity in which the persons in (a) and (b) or the Participant own more
than fifty percent of the voting interest.

     “HOSTILE TAKE-OVER” means a change in ownership of the Company effected through the following
transaction:

     (f) the direct or indirect acquisition by any person or related group of persons (other
than the Company or a person that directly or indirectly controls, is controlled by, or is
under common control with, the Company) of beneficial ownership (within the meaning of Rule
13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Company’s outstanding securities pursuant to a tender or
exchange offer made directly to the Company’s shareholders which the Board does not
recommend such shareholders to accept, and

     (g) the acceptance of more than fifty percent (50%) of the securities so acquired in
such tender or exchange offer from holders other than Insiders.

     “INDEPENDENT DIRECTOR” has the meaning given such term under the Rules of the National
Association of Securities Dealers, Inc. as in effect at the time of grant of any Award. For
convenience, as of the date of adoption of the Plan, the Rules of the National Association of
Securities Dealers, Inc. define “independent director” as a person other than an officer or
employee of the Company or any Subsidiary or any other individual having a relationship which, in
the opinion of the Board, would interfere with the exercise of independent judgment in carrying out
the responsibilities of a director. As of the date of adoption of the Plan, the Rules of the
National Association of Securities Dealers, Inc. go on to provide that the following persons shall
not be considered as an “independent director”:

     (h) a director who is, or at any time during the past three (3) years was, employed by
the Company or by any Parent or Subsidiary;

     (i) a director who accepted or who has a Related Party who accepted any payments from
the Company or any Parent or Subsidiary in excess of $60,000 during any period of twelve
(12) consecutive months within the three (3) years preceding the determination of
independence, other than the following:

                    (i) compensation for service on the Board or a committee of the Board;

                    (ii) Payments arising solely from investments in the Company’s securities;

                    (iii) compensation paid to a Related Party who is a non-executive employee of the Company or a
Parent or Subsidiary;

                    (iv) benefits under a tax-qualified retirement plan, or non-discretionary compensation;

                    (v) loans from a financial institution provided that the loans (A) were made in the ordinary
course of business, (B) were made on substantially the same terms, including interest rates and
collateral, as those prevailing at the time for comparable transactions with the general public,
(C) did not involve more than a normal degree of risk or other unfavorable factors, and (D) were
not otherwise subject to the specific disclosure requirements of SEC Regulation S-K, Item 404;

                    (vi) payments from a financial institution in connection with the deposit of funds or the
financial institution acting in an agency capacity, provided such payments were (A) made in the
ordinary course of business; (B) made on substantially the same terms as those prevailing at the
time for comparable transactions with the general public; and (C) not otherwise subject to the
disclosure requirements of SEC Regulation S-K, Item 404; or

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                    (vii) loans permitted under Section 13(k) of the Exchange Act.

     (j) a director who is a Related Party of an individual who is, or at any time during
the past three years was, employed by the Company or by any Parent or Subsidiary as an
executive officer. Immediate family includes a person’s spouse, parents, children, siblings,
mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law,
and anyone who resides in such person’s home;

     (k) a director who is, or has a Related Party who is, a partner in, or a controlling
shareholder or an executive officer of, any organization to which the Company made, or from
which the Company received, payments for property or services in the current or any of the
past three fiscal years that exceed 5% of the recipient’s consolidated gross revenues for
that year, or $200,000, whichever is more, other than the following:

                    (i) payments arising solely from investments in the Company’s securities; or

                    (ii) payments under non-discretionary charitable contribution matching programs.

     (l) a director of the Company who is, or has a Related Party who is, employed as an
executive officer of another entity where at any time during the past three (3) years any of
the executive officers of the Company serve on the compensation committee of such other
entity; or

     (m) a director who is, or has a Related Party who is, a current partner of the
Company’s outside auditor, or was a partner or employee of the Company’s outside auditor who
worked on the Company’s audit at any time during any of the past three (3) years.

     “INSIDER” means an officer or director of the Company or any other person whose transactions
in the Company’s Shares are subject to Section 16 of the Exchange Act.

     “OPTION” means an award of an option to purchase Shares pursuant to Section 5.

     “PARENT” means any corporation (other than the Company) in an unbroken chain of corporations
ending with the Company if each of such corporations other than the Company owns stock possessing
more than 50% of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

     “PARTICIPANT” means a person who receives an Award under this Plan.

     “PERFORMANCE FACTORS” means the factors selected by the Committee from among the following
measures to determine whether the performance goals established by the Committee and applicable to
Awards have been satisfied:

     (a) Net revenue and/or net revenue growth;

     (b) Earnings before income taxes and amortization and/or earnings before income taxes
and amortization growth;

     (c) Operating income and/or operating income growth;

     (d) Net income and/or net income growth;

     (e) Earnings per share and/or earnings per share growth;

     (f) Total stockholder return and/or total stockholder return growth;

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     (g) Return on equity;

     (h) Operating cash flow return on income;

     (i) Adjusted operating cash flow return on income;

     (j) Economic value added; and

     (k) Individual confidential business objectives.

     “PERFORMANCE PERIOD” means the period of service determined by the Committee, not to exceed
five years, during which years of service or performance is to be measured for Awards.

     “PLAN” means this Flextronics International Ltd. 2004 Award Plan for New Employees, as amended
from time to time.

     “RELATED PARTY” means a person’s spouse, parents, children and siblings, whether by blood,
marriage or adoption, or anyone residing in such person’s home.

     “SEC” means the Securities and Exchange Commission.

     “SECURITIES ACT” means the Securities Act of 1933, as amended.

     “SHARES” means ordinary shares of par value S$0.01 each in the capital of the Company reserved
for issuance under this Plan, as adjusted pursuant to Sections 2 and 15, and any successor
security.

     “STOCK BONUS” means an award of Shares pursuant to Section 8.

     “SUBSIDIARY” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if each of the corporations other than the last corporation
in the unbroken chain owns stock possessing more than 50% of the total combined voting power of all
classes of stock in one of the other corporations in such chain.

     “TAKE-OVER PRICE” means the greater of (a) the Fair Market Value per Share on the date the
particular Option to purchase Shares is surrendered to the Company in connection with a Hostile
Take-Over or (b) the highest reported price per Share paid by the tender offeror in effecting such
Hostile Take-Over. However, if the surrendered Option is an ISO, the Take-Over Price shall not
exceed the clause (a) price per Share.

     “TERMINATION” or “TERMINATED” means, for purposes of this Plan with respect to a Participant,
that the Participant has for any reason ceased to provide services as an employee to the Company or
a Parent or Subsidiary of the Company. An employee will not be deemed to have ceased to provide
services in the case of (i) sick leave, (ii) military leave, or (iii) any other leave of absence
approved by the Committee, provided, that such leave is for a period of not more than 90 days,
unless reemployment upon the expiration of such leave is guaranteed by contract or statute or
unless provided otherwise pursuant to formal policy adopted from time to time by the Company and
issued and promulgated to employees in writing. In the case of any employee on an approved leave of
absence, the Committee may make such provisions respecting suspension of vesting of the Award while
on leave from the employ of the Company or a Subsidiary as it may deem appropriate, except that in
no event may an Option be exercised after the expiration of the term set forth in the Stock Option
Agreement. The Committee will have sole discretion to determine whether a Participant has ceased to
provide services and the effective date on which the Participant ceased to provide services (the
“TERMINATION DATE”).

     21. OPTION EXCHANGE PROGRAM.

          Notwithstanding any other provision of this Plan to the contrary, upon approval of this
amendment by the Company’s shareholders, the Board, the Committee or any designee of the Board or
the Committee may

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provide for, and the Company may implement, a one-time Option exchange offer, pursuant to
which certain outstanding Options would, at the election of the holder of such Option, be
surrendered to the Company for cancellation, whereupon the surrendered Options shall terminate and
have no legal effect whatsoever, in exchange for the grant of a lesser number of new Options, which
new Options may have reduced Exercise Prices and different vesting and expiration periods from the
surrendered Options; provided, however, that such offer shall be commenced within twelve months of
the date of such shareholder approval. For the avoidance of doubt, the surrendering and
cancellation of the Options shall not at any time, result in the Company acquiring, directly or
indirectly, a right or interest in the surrendered Options.

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