Document:

Exhibit 4.6

EXHIBIT 4.6

APPOINTMENT AND ACCEPTANCE OF SUCCESSOR RIGHTS AGENT

This APPOINTMENT AND ACCEPTANCE OF SUCCESSOR RIGHTS AGENT, is entered into as of the opening
of business on November 2, 2009, by and between Abercrombie & Fitch Co., a Delaware corporation
(the “Company”), and American Stock Transfer & Trust Company, LLC (“AST”).

WITNESSETH:

WHEREAS, on October 8, 2001, the Company appointed National City Bank (now a division of PNC
Financial Services Group, Inc. (“PNC”) and hereinafter referred to as “NCB”) to serve as “Rights
Agent” under the Rights Agreement, dated as of July 16, 1998, which was subsequently amended by
Amendment No. 1, dated as of April 21, 1999, and by Amendment No. 2, dated as of June 11, 2008
(collectively, the “Rights Agreement”); and

WHEREAS, in connection with the merger with PNC, NCB determined that it would no longer
provide corporate services as a rights agent and submitted its resignation as Rights Agent under
the Rights Agreement to be effect as of the close of business on October 30, 2009; and

WHEREAS, the Company has accordingly removed NCB as Rights Agent under the Rights Agreement
effective as of the close of business on October 30, 2009; and

WHEREAS, pursuant to Section 21 of the Rights Agreement, the Company has the right to appoint
a successor to the Rights Agent if the Rights Agent resigns, is removed or otherwise becomes
incapable of acting; and

WHEREAS, AST has indicated to the Company that AST would be willing to serve as successor
Rights Agent under the Rights Agreement, effective as of the opening of business on November 2,
2009;

NOW, THEREFORE, the Company and AST agree as follows:

1. Pursuant to Section 21 of the Rights Agreement, the Company hereby appoints, and AST
hereby accepts the appointment of, AST as successor Rights Agent under the Rights Agreement,
effective as of the opening of business on November 2, 2009.

2. In all respects not inconsistent with the terms and provisions of this Appointment and
Acceptance of Successor Rights Agent, the Rights Agreement is hereby ratified and confirmed. In
executing and delivering this Appointment and Acceptance of Successor Rights Agent, AST shall be
entitled to all of the privileges and immunities afforded to, and subject to all of the obligations
and duties of, the Rights Agent under the terms and conditions of the Rights Agreement.

 

 

 

3. This Appointment and Acceptance of Successor Rights Agent may be executed in any number of
counterparts, each of which shall be an original, and such counterparts shall together constitute
but one and the same instrument. Terms not defined herein shall, unless the context otherwise
requires, have the meanings assigned to such terms in the Rights Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Appointment and Acceptance of
Successor Rights Agent to be duly executed by their respective authorized representatives to be
effective as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	AMERICAN STOCK TRANSFER & TRUST	 	ABERCROMBIE & FITCH CO.
	COMPANY, LLC	 	 	 	 	 	 	 	 
	By:

	 	/s/ Kenneth E. Staub
	 	By:
	 	/s/ David S. Cupps	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Kenneth E. Staub
	 	 	 	Name: David S. Cupps	 	 	 	 
	 

	 	Title: Senior Vice President
	 	 	 	Title: Sr. VP, Secretary, General Counselexv10w3

Exhibit 10.3

Summary of Compensation Program for Non-Employee Directors

Adopted October 19, 2009

At a meeting of the Company’s Board of Directors held on October 19, 2009, at the recommendation of
the Compensation Committee, the Board of Directors unanimously adopted a new compensation program
for non-employee directors of the Company.

Under the newly adopted program, effective October 19, 2009, non-employee directors will receive
annual compensation comprised of the following elements:

	 	•	 	A retainer of $20,000, payable in cash;

	 
	 	•	 	Restricted stock under Company’s 2006 Long-Term Incentive Compensation Plan (the
“2006 Plan”) having a market value of $35,000 on the date of grant, based on the fair
market value (as defined in the 2006 Plan) of a share of the Company’s stock on such
date, subject to a one-year period of restriction; and

	 
	 	•	 	Retainers of $10,000 and $7,500, respectively, for the Chairperson of the Audit and
Compensation Committees, payable in cash, and a retainer of $5,000 for the Chairperson
of each of the Corporate Governance and Investment Committees.

The Board has eliminated per-meeting fees for the Board and all of its Committees.

Effective with the October 19, 2009 Board meeting, the equity component of the annual compensation
for non-employee directors will be granted on the date of the regularly scheduled meeting of the
Board held in October of each year, and the annual cash retainers will be paid in equal quarterly
installments.Exhibit 10.01

Exhibit 10.01

FLEXTRONICS INTERNATIONAL LTD.

2001 EQUITY INCENTIVE PLAN

As Adopted August 13, 2001 and amended through July 22, 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 21.

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 62,000,000
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. In addition, any authorized shares
not issued or subject to outstanding grants under the Company’s 1993 Share Option Plan, 1997
Interim Option Plan, 1998 Interim Option Plan, 1999 Interim Option Plan, ASIC International, Inc.
Non-Qualified Stock Option Plan, Wave Optics, Inc. 1997 Share Option Plan, Wave Optics, Inc. 2000
Share Option Plan, Chatham Technologies, Inc. Stock Option Plan, Chatham Technologies, Inc. 1997
Stock Option Plan, IEC Holdings Limited 1997 Share Option Scheme, Palo Alto Products International
Private Ltd 1996 Share Option Plan, The DII Group, Inc. 1994 Stock Incentive Plan, The DII Group,
Inc. 1993 Stock Option Plan, Orbit Semiconductor, Inc. 1994 Stock Incentive Plan, Telcom Global
Solutions Holdings, Inc. 2000 Equity Incentive Plan, Telcom Global Solutions, Inc. 2000 Stock
Option Plan, KMOS Semi-Customs, Inc. 1989 Stock Option Plan, and KMOS Semi-Customs, Inc. 1990
Non-Qualified Stock Option Plan, (each a “Prior Plan” and collectively, the “Prior Plans”) and any
shares subject to outstanding grants that are forfeited and/or that are issuable upon exercise of
options granted pursuant to the Prior Plans that expire or become unexercisable for any reason
without having been exercised in full, will no longer be available for grant and issuance under the
Prior Plans, but will be available for grant and issuance under this Plan. 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
30,000,000 Shares shall be issued as ISOs and no more than 20,000,000 Shares shall be issued as
Stock Bonuses.

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, spin-off 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, (ii) the maximum number and/or
class of securities for which any Participant may be granted Awards under the terms of the Plan or
that may be granted generally under the terms of the Plan, and (iii) the number and/or class of
securities and price per Share in effect under each Award outstanding under Sections 5 and 20 and
outstanding Awards previously granted pursuant to Section 7 hereof. 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. The adjustments determined by the Committee shall be
final, binding and conclusive. The repricing, replacement or regranting of any previously granted
Award, through cancellation or by lowering the Exercise Price or Purchase Price of such Award,
shall be prohibited unless the shareholders of the Company first approve such repricing,
replacement or regranting.

3. ELIGIBILITY. All Awards may be granted to employees, officers and directors of the Company
or any Parent or Subsidiary of the Company. No person will be eligible to receive more than
6,000,000 Shares in any calendar year under this Plan pursuant to the grant of Awards hereunder;
provided, however, that no Outside Director will be eligible to receive more than 100,000 Shares,
in the aggregate, in any calendar year under this Plan pursuant to the grant of Awards hereunder. A
person 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. 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 to eligible persons and will determine whether
such Options will be Incentive Stock Options within the meaning of the Code (“ISOs”) or
Nonqualified Stock Options (“NQSOs”), 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 ISO or 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.

 

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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; and provided further that (i) no ISO granted to a person who
directly or by attribution owns more than ten percent (10%) of the total combined voting power of
all classes of shares or stock of the Company or of any Parent or Subsidiary of the Company (“Ten
Percent Shareholder”) will be exercisable after the expiration of five (5) years from the date the
ISO is granted and (ii) 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 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: (i) the Exercise Price will be not less than
100% of the Fair Market Value of the Shares on the date of grant; and (ii) the Exercise Price of
any ISO granted to a Ten Percent Shareholder will not be less than 110% of the Fair Market Value of
the Shares on the date of grant. Payment for the Shares purchased may be made in accordance with
Section 6 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 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.

 

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(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 longer time period not exceeding five (5) years as
may be determined by the Committee, provided, that any Option which is exercised beyond
three (3) months after the Termination Date shall be deemed to be an NQSO), 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, provided, that any Option which is exercised beyond twelve
(12) months after the Termination Date when the Termination is for Participant’s Disability,
shall be deemed to be an NQSO), 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 Limitations on ISO. The aggregate Fair Market Value (determined as of the date of
grant) of Shares with respect to which ISO are exercisable for the first time by a Participant
during any calendar year (under this Plan or under any other incentive stock option plan of the
Company, Parent or Subsidiary of the Company) will not exceed US$100,000. If the Fair Market Value
of Shares on the date of grant with respect to which ISO are exercisable for the first time by a
Participant during any calendar year exceeds US$100,000, then the Options for the first US$100,000
worth of Shares to become exercisable in such calendar year will be ISO and the Options for the
amount in excess of US$100,000 that become exercisable in that calendar year will be NQSOs. In the
event that the Code or the regulations promulgated thereunder are amended after the Effective Date
of this Plan to provide for a different limit on the Fair Market Value of Shares permitted to be
subject to ISO, such different limit will be automatically incorporated herein and will apply to
any Options granted after the effective date of such amendment.

5.9 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. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code.

 

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5.10 No Disqualification. Notwithstanding any other provision in this Plan, no term
of this Plan relating to ISO will be interpreted, amended or altered, nor will any discretion or
authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of
the Code or, without the consent of the Participant affected, to disqualify any ISO under Section
422 of the Code.

6. PAYMENT FOR SHARE PURCHASES.

6.1 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:

(i) 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

(ii) 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

(e) by any combination of the foregoing.

7. GRANTS TO OUTSIDE DIRECTORS.

7.1 Option Grants. No Options granted to an Outside Director will be exercisable
after the expiration of five (5) years from the date the Option is granted to such Outside
Director. If the Outside Director is Terminated, the Outside Director may exercise such Outside
Director’s Options only to the extent that such Options would have been exercisable upon the
Termination Date for such period as set forth in Section 5.6. Notwithstanding any provision to the
contrary, in the event of a Corporate Transaction described in Section 15.1, the vesting of all
Options previously granted to Outside Directors pursuant to Section 7 of this Plan will accelerate
and such Options will become exercisable in full prior to the consummation of such event at such
times and on such conditions as the Committee determines, and must be exercised, if at all, within
three (3) months of the consummation of said event. Any Options not exercised within such
three-month period shall expire. Notwithstanding any provision to the contrary, in the event of a
Hostile Take-Over, the Outside Director shall have a thirty-day period in which to surrender to the
Company each option held by him or her under this Plan for a period of at least six (6) months. The
Outside Director shall in return be entitled to a cash distribution from the Company in an amount
equal to the excess of (i) the Take-Over Price of the Shares at the time subject to the surrendered
Option (whether or not the Option is
otherwise at the time exercisable for those Shares) over (ii) the aggregate Exercise Price
payable for such Shares. Such cash distribution shall be paid within five (5) days following the
surrender of the Option to the Company. Neither the approval of the Committee nor the consent of
the Board shall be required in connection with such option surrender and cash distribution. The
Shares subject to each Option surrendered in connection with the Hostile Take-Over shall NOT be
available for subsequent issuance under the Plan.

 

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7.2 Elimination of Automatic Grants to Outside Directors. As of July 22, 2009, no
further automatic option grants shall be made to Outside Directors pursuant to this Section 7. Any
automatic option grants previously granted pursuant to Section 7 of this Plan shall remain subject
to the terms, conditions and restrictions of the Plan in effect at the time the Award was granted.

8. WITHHOLDING TAXES.

8.1 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.

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

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 Options 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 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, subject to
Code regulations providing that any transfer of an ISO may cause such ISO to become a NQSO. 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 All Awards other than NQSO’s. All Awards other than NQSO’s shall be exercisable:
(i) during the Participant’s lifetime, only by (A) the Participant, or (B) the Participant’s
guardian or legal representative; and (ii) after Participant’s death, by the legal representative
of the Participant’s heirs or legatees. 9.3 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 9.2, 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.

 

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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 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. Except for automatic grants to
Outside Directors previously granted pursuant to Section 7 hereof, 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

 

7

 

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 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. ADOPTION AND SHAREHOLDER APPROVAL. This Plan will become effective on the date on which
the Board adopts the Plan (the “Effective Date”). This Plan shall be approved by the shareholders
of the Company (excluding Shares issued pursuant to this Plan), consistent with applicable laws,
within twelve (12) months before or after the date this Plan is adopted by the Board. Upon the
Effective Date, the Committee may grant Awards pursuant to this Plan; provided, however, that: (a)
no Option may be exercised prior to initial shareholder approval of this Plan; (b) no Option
granted pursuant to an increase in the number of Shares subject to this Plan approved by the Board
will be exercised prior to the time such increase has been approved by the shareholders of the
Company; (c) in the event that initial shareholder approval is not obtained within the time period
provided herein, all Awards granted hereunder shall be cancelled; and (d) in the event that
shareholder approval of such increase is not obtained within the time period provided herein, all
Awards granted pursuant to such increase will be cancelled.

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 earlier, 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.

 

8

 

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 Options at the time outstanding under the Plan, unless the Participant consents to such
amendment. In addition, the Board may not, without the approval of the Company’s shareholders,
amend the Plan to (i) materially increase the maximum number of Shares issuable under the Plan or
the number of Shares for which Options may be granted per newly-
elected or continuing Outside Director or the maximum number of Shares for which any one
individual participating in the Plan may be granted Options, (ii) materially modify the eligibility
requirements for plan participation or (iii) materially increase the benefits accruing to
Participants. 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; provided, however, that the Board will not, without the approval of the shareholders
of the Company, amend this Plan in any manner that requires such shareholder approval.

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. STOCK BONUSES.

20.1 Stock Bonuses Generally. 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, subject to the restrictions set forth in Section 20.2 hereof. 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 Commitee 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.

20.2 Restrictions on Stock Bonus Awards.

(a) Any Stock Bonuses with vesting based on Performance Factors shall have a minimum
Performance Period of one year, and any Stock Bonuses with vesting based solely on the passage of
time and continued service to the Company shall have a minimum Performance Period of three years
(collectively, the “Stock Bonus Restriction Periods”).

(b) The Stock Bonus Restriction Periods may not be waived except in the case of death,
Disability, Termination or a Corporate Transaction.

(c) Stock Bonuses granted not in accordance with the Stock Bonus Restriction Periods may not
exceed five percent (5%) of the total Shares reserved and available for grant and issuance pursuant
to this Plan, including (i) 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; (ii) any authorized
shares not issued or subject to outstanding grants under the Prior Plans; and (iii) any shares
subject to outstanding grants that are forfeited and/or that are issuable upon exercise of options
granted pursuant to the Prior Plans that expire or become unexercisable for any reason without
having been exercised in full.

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

“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.

 

9

 

“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 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.

 

10

 

“Hostile Take-Over” means a change in ownership of the Company effected through the following
transaction:

(a) 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

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

“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 or previously
granted pursuant to Section 7.

“Outside Director” means a member of the Board who is not an employee of the Company or any
Parent or Subsidiary.

“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;

(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.

 

11

 

“Plan” means this Flextronics International Ltd. 2001 Equity Incentive Plan, as amended from
time to time.

“SEC” means the Securities and Exchange Commission.

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

“Shares” means ordinary shares of no par value 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 20.

“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, 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, 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”).

22. 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.

 

12

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