Document:

exv10w04

Exhibit 10.04

FLEXTRONICS INTERNATIONAL LTD.

1993 SHARE OPTION PLAN

ARTICLE ONE

GENERAL

I. PURPOSE OF THE PLAN

     A. This 1993 Share Option Plan (the “Plan”) is intended to promote the interests of
Flextronics International Ltd., a Singapore corporation (the “Corporation”), by providing (i) key
employees (including officers) of the Corporation (or its parent or subsidiary corporations) who
are responsible for the management, growth and financial success of the Corporation (or its parent
or subsidiary corporations), (ii) certain non-employee members of the Corporation’s Board of
Directors (the “Board”) and (iii) certain consultants and other independent contractors who provide
valuable services to the Corporation (or its parent or subsidiary corporations) with the
opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in
the Corporation as an incentive for them to remain in the service of the Corporation (or its parent
or subsidiary corporations).

     B. The Plan shall become effective on December 1, 1993 upon adoption by the Board, and such
date shall accordingly constitute the Effective Date of the Plan.

II. DEFINITIONS

     A. For purposes of the Plan, the following definitions shall be in effect:

          BOARD: the Corporation’s Board of Directors.

          CHANGE IN CONTROL: a change in ownership or control of the Corporation effected through either
of the following transactions:

	 	(a)	 	the direct or indirect acquisition by any person or related group of persons
(other than the Corporation or a person that directly or indirectly controls, is
controlled by, or is under common control with, the Corporation) of beneficial
ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing
more than fifty percent (50%) of the total combined voting power of the Corporation’s
outstanding securities pursuant to a tender or exchange offer made directly to the
Corporation’s stockholders which the Board does not recommend such stockholders to
accept; or
	 
	 	(b)	 	a change in the composition of the Board over a period of thirty-six (36)
consecutive months or less such that a majority of the Board members (rounded up to the
next whole number) ceases, by reason of one or more proxy contests for the election of
Board members, to be comprised of individuals who either (i) have been Board members
continuously since the beginning of such period or (ii) have been elected or nominated
for election as Board members during such period by at least a majority of the Board
members described in clause (i) who were still in office at the time such election or
nomination was approved by the Board.

          CODE: the U.S. Internal Revenue Code of 1986, as amended.

          CORPORATE TRANSACTION: any of the following stockholder-approved transactions to which the
Corporation is a party:

 

 

	 	(a)	 	a merger or consolidation in which the Corporation is not the surviving entity,
except for a transaction the principal purpose of which is to change the state in which
the Corporation is incorporated,
	 
	 	(b)	 	the sale, transfer or other disposition of all or substantially all of the
assets of the Corporation in complete liquidation or dissolution of the Corporation, or
	 
	 	(c)	 	any reverse merger in which the Corporation is the surviving entity but in
which securities possessing more than fifty percent (50%) of the total combined voting
power of the Corporation’s outstanding securities are transferred to a person or
persons different from the persons holding those securities immediately prior to such
merger.

          EMPLOYEE: an individual who performs services while in the employ of the Corporation or one or
more parent or subsidiary corporations, subject to the control and direction of the employer entity
not only as to the work to be performed but also as to the manner and method of performance.

          EXERCISE DATE: the date on which the Corporation shall have received written notice of the
option exercise.

          FAIR MARKET VALUE: the Fair Market Value per Ordinary Share determined in accordance with the
following provisions:

	 	(a)	 	If the Ordinary Shares are not at the time listed or admitted to trading on any
U.S. national stock exchange but are traded on the Nasdaq National Market, the Fair
Market Value shall be the closing selling price per Ordinary Share on the date in
question, as such price is reported by the National Association of Securities Dealers
through the Nasdaq National Market or any successor system. If there is no reported
closing selling price for the Ordinary Shares on the date in question, then the closing
selling price per Ordinary Share on the last preceding date for which such quotation
exists shall be determinative of Fair Market Value.
	 
	 	(b)	 	If the Ordinary Shares are at the time listed or admitted to trading on any
U.S. national stock exchange, then the Fair Market Value shall be the closing selling
price per Ordinary Share on the date in question on the U.S. exchange determined by the
Plan Administrator to be the primary market for the Ordinary Shares, as such price is
officially quoted in the composite tape of transactions on such exchange. If there is
no reported sale of the Ordinary Shares on such exchange on the date in question, then
the Fair Market Value shall be the closing selling price per Ordinary Share on the
exchange on the last preceding date for which such quotation exists.
	 
	 	(c)	 	If the Ordinary Shares are on the date in question neither listed nor admitted
to trading on any U.S. national stock exchange nor traded on the Nasdaq National
Market, then the Fair Market Value per Ordinary Share on such date shall be determined
by the Plan Administrator after taking into account such factors as the Plan
Administrator shall deem appropriate.

          HOSTILE TAKE-OVER: a change in ownership of the Corporation effected through the following
transaction:

	 	(a)	 	the direct or indirect acquisition by any person or related group of persons
(other than the Corporation or a person that directly or indirectly controls, is
controlled by, or is under common control with, the Corporation) of beneficial
ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing
more than fifty percent (50%) of the total combined voting power of the Corporation’s
outstanding securities pursuant to a tender or exchange offer made directly to the
Corporation’s stockholders which the Board does not recommend such stockholders 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 Section 16 Insiders.

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          INCENTIVE OPTION: a stock option which satisfies the requirements of Code Section 422.

          INITIAL AUTOMATIC GRANT DATE: January 24, 1994.

          1934 ACT: the U.S. Securities and Exchange Act of 1934, as amended from time to time.

          NON-STATUTORY OPTION: a stock option not intended to meet the requirements of Code Section
422.

          OPTIONEE: any person to whom an option is granted under the Discretionary Option Grant or
Automatic Option Grant Program in effect under the Plan.

          ORDINARY SHARES: ordinary shares of the Corporation with a par value of S$0.01 per share.

          PARENT: any corporation (other than the Corporation) in an unbroken chain of corporations
ending with the Corporation, provided each corporation in the unbroken chain (other than the
Corporation) owns, at the time of the determination, stock possessing more than fifty percent (50%)
of the total combined voting power of all classes of stock in one of the other corporations in such
chain.

          PERMANENT DISABILITY OR PERMANENTLY DISABLED: the inability of the Optionee or the Participant
to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment expected to result in death or to be of continuous duration of twelve (12) months
or more.

          PLAN ADMINISTRATOR: the particular entity, whether the Primary Committee, the Board or the
Secondary Committee, which is authorized to administer the Discretionary Option Grant Program with
respect to one or more classes of eligible persons, to the extent such entity is carrying out its
administrative functions under that program with respect to the persons under its jurisdiction.

          PRIMARY COMMITTEE: the committee of two (2) or more non-employee Board members appointed by
the Board to administer the Discretionary Option Grant Program with respect to Section 16 Insiders.

          SECONDARY COMMITTEE: the committee of one (1) or more Board members appointed by the Board to
administer the Discretionary Option Grant Program with respect to eligible persons other than
Section 16 Insiders.

          SERVICE: the performance of services on a periodic basis to the Corporation (or any parent or
subsidiary corporation) in the capacity of an Employee, a non-employee member of the Board or an
independent consultant or advisor, except to the extent otherwise specifically provided in the
applicable stock option agreement.

          SECTION 12(g) REGISTRATION DATE: the date on which the initial registration of the Ordinary
Shares under Section 12(g) of the 1934 Act becomes effective.

          SECTION 16 INSIDER: an officer or director of the Corporation subject to the short-swing
profit restrictions of Section 16 of the 1934 Act.

          SUBSIDIARY: any corporation (other than the Corporation) in an unbroken chain of corporations
beginning with the Corporation, provided each corporation (other than the last corporation) in the
unbroken chain owns, at the time of the determination, stock possessing more than fifty percent
(50%) of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

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

          UNDERWRITING EXECUTION DATE: the date on which the Underwriting Agreement for the initial
public offering of the Ordinary Shares in the U.S. is executed and priced.

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     B. The following provisions shall be applicable in determining the parent and subsidiary
corporations of the Corporation:

          Any corporation (other than the Corporation) in an unbroken chain of corporations ending with
the Corporation shall be considered to be a PARENT of the Corporation, provided each such
corporation in the unbroken chain (other than the Corporation) owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain.

          Each corporation (other than the Corporation) in an unbroken chain of corporations beginning
with the Corporation shall be considered to be a SUBSIDIARY of the Corporation, provided each such
corporation in the unbroken chain (other than the last corporation) owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain.

III. STRUCTURE OF THE PLAN

     A. Stock Programs. The Plan shall be divided into two (2) components: the Discretionary
Option Grant Program specified in Article Two and the Automatic Option Grant Program specified in
Article Three. Under the Discretionary Option Grant Program, eligible individuals may, at the
discretion of the Plan Administrator, be granted options to purchase Ordinary Shares in accordance
with the provisions of Article Two. Under the Automatic Option Grant Program, non-employee members
of the Board will receive special option grants at periodic intervals to purchase Ordinary Shares
in accordance with the provisions of Article Three.

     B. General Provisions. Unless the context clearly indicates otherwise, the provisions of
Articles One and Four shall apply to the Discretionary Option Grant and the Automatic Option Grant
Programs and shall accordingly govern the interests of all individuals under the Plan.

IV. ADMINISTRATION OF THE PLAN

     A. The Primary Committee shall have sole and exclusive authority to administer the
Discretionary Option Grant Program with respect to Section 16 Insiders. No non-employee Board
member shall be eligible to serve on the Primary Committee if such individual has, during the
twelve (12)-month period immediately preceding the date of his or her appointment to the Committee
or (if shorter) the period commencing with the Section 12(g) Registration Date and ending with the
date of his or her appointment to the Primary Committee, received an option grant under the Plan or
any other stock option, stock appreciation, stock bonus or other stock plan of the Corporation (or
any parent or subsidiary corporation), other than pursuant to the Automatic Option Grant
Program.

     B. Administration of the Discretionary Option Grant Program with respect to all other persons
eligible to participate in that program may, at the Board’s discretion, be vested in the Primary
Committee or a Secondary Committee, or the Board may retain the power to administer that program
with respect to all such persons. The members of the Secondary Committee may be Board members who
are Employees eligible to receive discretionary option grants under the Plan or any other stock
option, stock appreciation, stock bonus or other stock plan of the Corporation (or any Parent or
Subsidiary).

     C. Members of the Primary Committee or any Secondary Committee shall serve for such period of
time as the Board may determine and may be removed by the Board at any time. The Board may also at
any time terminate the functions of any Secondary Committee and reassume all powers and authority
previously delegated to such committee.

     D. Each Plan Administrator shall, within the scope of its administrative functions under the
Plan, have full power and authority (subject to the provisions of the Plan) to establish such rules
and regulations as it may deem appropriate for proper administration of the Discretionary Option
Grant Program and to make such determinations under, and issue such interpretations of the
provisions of such program and any outstanding options or stock issuances thereunder as it may deem
necessary or advisable. Decisions of the Plan Administrator within the scope of its administrative
functions under the Plan shall be final and binding on all parties who have an interest in the
Discretionary Option Grant Program under its jurisdiction or any option grant thereunder.

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     E. Service on the Primary Committee or the Secondary Committee shall constitute service as a
Board member, and members of each such committee shall accordingly be entitled to full
indemnification and reimbursement as Board members for their service on such committee. No member
of the Primary Committee or the Secondary Committee shall be liable for any act or omission made in
good faith with respect to the Plan or any option grants under the Plan.

     F. Administration of the Automatic Option Grant Program shall be self-executing in accordance
with the terms and conditions of that program, and no Plan Administrator shall exercise any
discretionary functions with respect to any option grants made under that program.

V. OPTION GRANTS

     A. The persons eligible to participate in the Discretionary Option Grant Program under Article
Two shall be limited to the following:

	 	1.	 	officers and other key employees of the Corporation (or its parent or
subsidiary corporations) who render services which contribute to the management, growth
and financial success of the Corporation (or its parent or subsidiary corporations);
and
	 
	 	2.	 	those consultants or other independent contractors who provide valuable
services to the Corporation (or its parent or subsidiary corporations) but who are not
residents of Singapore.

     B. Non-employee Board members shall not be eligible to participate in the Discretionary Option
Grant Program. Such individuals shall, however, be eligible to receive automatic option grants
pursuant to the provisions of Article Three, provided such individuals are not residents of
Singapore.

     C. The Plan Administrator shall have full authority to determine which eligible individuals
are to receive option grants under the Discretionary Option Grant Program, the number of Ordinary
Shares to be covered by each such grant, the status of the granted option as either an Incentive
Option or a Non-Statutory Option, the time or times at which each granted option is to become
exercisable and the maximum term for which the option may remain outstanding.

     D. Options may be granted to eligible individuals or upon the request of any such individual
to a trust or other entity for the benefit of such individual at the discretion of the Plan
Administrator.

VI. STOCK SUBJECT TO THE PLAN

     A. The maximum number of Ordinary Shares which may be issued over the term of the Plan shall
not exceed 50,800,000* Ordinary Shares, subject to adjustment from time to time in accordance with
the provisions of this Section VI. The Ordinary Shares reserved for issuance under the Plan shall
be drawn from the Corporation’s authorized but unissued Ordinary Shares.

     B. In no event may the aggregate number of Ordinary Shares for which any one individual
participating in the Plan may be granted stock options exceed 4,000,000* Ordinary Shares annually.

     C. Should one or more outstanding options under this Plan expire or terminate for any reason
prior to exercise in full (including any option cancelled in accordance with the
cancellation-regrant provisions of Section IV of Article Two of the Plan), then the Ordinary Shares
subject to the portion of each option not so exercised shall be available for subsequent issuance
under the Plan. Ordinary Shares subject to any option or portion thereof surrendered in accordance
with Section V of Article Two or Section III of Article Three and all Ordinary Shares issued under
the Plan shall reduce on a share-for-share basis the number of Ordinary Shares available for
subsequent issuance the Plan.

     D. Should any change be made to the Ordinary 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 Ordinary Shares as a class without the Corporation’s receipt of
consideration, then appropriate adjustments shall be made to (i)

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the maximum number and/or class of
securities issuable under the Plan, (ii) the maximum number and/or class of securities for which
any one individual participating in the Plan may be granted stock options over the term of the
Plan, (iii) the number and/or class of securities and price per share in effect under each option
outstanding under the Discretionary Option Grant or Automatic Option Grant Program, and (iv) the
class of securities for which automatic option grants are to be subsequently made to newly elected
or continuing non-employee Board members under Automatic Option Grant Program. Such adjustments to
the outstanding options are to be effected in a manner which shall preclude the enlargement or
dilution of rights and benefits under such options. The adjustments determined by the Plan
Administrator shall be final, binding and conclusive. In no event shall such adjustments be made to
the number of securities for which automatic option grants are to be subsequently made to newly
elected or continuing non-employee Board members under the Automatic Option Grant Program.

     E. The repricing, replacement or regranting of any previously granted share option, through
cancellation or by lowering the exercise price of such share option, shall be prohibited unless the
shareholders of the Company first approve such repricing, replacement or regranting.

ARTICLE TWO

DISCRETIONARY OPTION GRANT PROGRAM

I. TERMS AND CONDITIONS OF OPTIONS

     Options granted pursuant to the Discretionary Option Grant Program shall be authorized by
action of the Plan Administrator and may, at the Plan Administrator’s discretion, be either
Incentive Options or Non-Statutory Options. Individuals who are not Employees of the Corporation or
its parent or subsidiary corporations may only be granted Non-Statutory Options. Each granted
option shall be evidenced by one or more instruments in the form approved by the Plan
Administrator; provided, however, that each such instrument shall comply with the terms and
conditions specified below. Each instrument evidencing an Incentive Option shall, in addition, be
subject to the applicable provisions of Section II of this Article Two.

     A. Exercise Price.

	 	1.	 	The exercise price per Ordinary Share shall be fixed by the Plan Administrator
in accordance with the following provisions:

	 	(a)	 	The exercise price per Ordinary Share subject to an Incentive Option
shall in no event be less than one hundred percent (100%) of the Fair Market Value
per Ordinary Share on the grant date.
	 
	 	(b)	 	The exercise price per Ordinary Share subject to a Non-Statutory Option
shall in no event be less than eighty-five percent (85%) of the Fair Market Value
per Ordinary Share on the grant date.
	 
	 	(c)	 	In no event may the exercise price per Ordinary Share subject to any
Incentive or Non-Statutory Option be less than the par value of such Ordinary
Share.

	 	2.	 	The exercise price shall become immediately due upon exercise of the option
and, subject to the provisions of Section I of Article Four and the instrument
evidencing the grant, shall be payable in one of the following alternative forms
specified below:

	 	(a)	 	full payment in cash or check made payable to the Corporation’s order;
	 
	 	(b)	 	full payment through a broker-dealer sale and remittance procedure
pursuant to which the Optionee shall provide concurrent irrevocable written
instructions (i) to a Corporation-designated brokerage firm to effect the immediate
sale of the purchased Ordinary Shares and remit to the Corporation, out of the sale
proceeds available on the settlement date, sufficient funds to cover the aggregate
exercise price payable for the purchased Ordinary Shares plus all applicable

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	 	 	 	Federal, state and local income and employment taxes required to be withheld by the
Corporation in connection with such purchase and (ii) to the Corporation to deliver
the certificates for the purchased Ordinary Shares directly to such brokerage firm
in order to complete the sale transaction; or
	 
	 	(c)	 	conversion of a convertible note issued by the Corporation or a
Subsidiary, the terms of which provide that it is convertible into Ordinary Shares
issuable pursuant to the 1993 Plan (with the principal amount and any accrued
interest being converted and credited dollar for dollar to the payment of the
exercise price).

     B. Term and Exercise of Options. Each option granted under this Discretionary Option Grant
Program shall be exercisable at such time or times and during such period as is determined by the
Plan Administrator and set forth in the instrument evidencing the grant. No such option, however,
shall have a maximum term in excess of five (5) years measured from the grant date. The option,
together with any stock appreciation rights pertaining to such option, shall be exercisable only by
the Optionee and shall not be assignable by the Optionee, except for a transfer of the option
effected by will or the laws of descent or distribution following the Optionee’s death.
Notwithstanding the foregoing, (i) Optionees may transfer or assign their options (other than
Incentive Options) to family members (as defined below) 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, Optionees 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 Plan Administrator, in accordance with the terms of the
applicable instrument. The Optionee 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
Plan Administrator shall have the discretion to adopt such rules as it deems necessary to ensure
that any assignment is in compliance with all applicable laws.

     C. Termination of Service.

	 	1.	 	The following provisions shall govern the exercise period applicable to any
outstanding options held by the Optionee at the time of cessation of Service or death.

	 	(a)	 	Should an Optionee cease Service for any reason (including death or
Permanent Disability) while holding one or more outstanding options under this
Article Two, then none of those options shall (except to the extent otherwise
provided pursuant to subparagraph 3 below) remain exercisable for more than a
twenty-four (24)-month period (or such shorter period determined by the Plan
Administrator and set forth in the instrument evidencing the grant) measured from
the date of such cessation of Service.
	 
	 	(b)	 	Any option held by the Optionee under this Article Two and exercisable
in whole or in part on the date of his or her death may be subsequently exercised
by the personal representative of the Optionee’s estate or by the person or persons
to whom the option is transferred pursuant to the Optionee’s will or in accordance
with the laws of descent and distribution. However, the right to exercise such
option shall lapse upon the earlier of (i) the second anniversary of the date of
the Optionee’s death (or such shorter period determined by the Plan Administrator
and set forth in the instrument evidencing the grant) or (ii) the specified
expiration date of the option term. Accordingly, upon the occurrence of the earlier
event, the option shall terminate and cease to remain outstanding.
	 
	 	(c)	 	Under no circumstances shall any such option be exercisable after the
specified expiration date of the option term.
	 
	 	(d)	 	During the applicable post-Service exercise period, the option may not
be exercised in the aggregate for more than the number of Ordinary Shares (if any)
for which that option is exercisable at the time of the Optionee’s cessation of
Service. Upon the expiration of the limited post-Service exercise period or (if
earlier) upon the specified expiration date of the option term, each such option
shall terminate and cease to be outstanding with respect to any vested Ordinary

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	 	 	 	Shares for which the option has not otherwise been exercised. However, each
outstanding option shall immediately terminate and cease to be outstanding, at the
time of the Optionee’s cessation of Service, with respect to any Ordinary Shares
for which the option is not otherwise at that time exercisable or in which Optionee
is not otherwise vested.
	 
	 	(e)	 	Should (i) the Optionee’s Service be terminated for misconduct
(including, but not limited to, any act of dishonesty, willful misconduct, fraud or
embezzlement) or (ii) the Optionee make any unauthorized use or disclosure of
confidential information or trade secrets of the Corporation or its parent or
subsidiary corporations, then in any such event all outstanding options held by the
Optionee under this Article Two shall terminate immediately and cease to remain
outstanding.

	 	2.	 	The Plan Administrator shall have complete discretion, exercisable either at
the time the option is granted or at any time while the option remains outstanding, to
permit one or more options held by the Optionee under this Article Two to be exercised,
during the limited post-Service exercise period applicable under this paragraph C., not
only with respect to the number of vested Ordinary Shares for which each such option is
exercisable at the time of the Optionee’s cessation of Service but also with respect to
one or more subsequent installments of vested Ordinary Shares for which the option
would otherwise have become exercisable had such cessation of Service not occurred.
	 
	 	3.	 	The Plan Administrator shall also have full power and authority, exercisable
either at the time the option is granted or at any time while the option remains
outstanding, to extend the period of time for which the option is to remain exercisable
following the Optionee’s cessation of Service or death from the limited period in
effect under subparagraph 1. above to such greater period of time as the Plan
Administrator shall deem appropriate. In no event, however, shall such option be
exercisable after the specified expiration date of the option term.

     D. Stockholder Rights. An optionee shall have no stockholder rights with respect to the
Ordinary Shares subject to the option until such individual shall have exercised the option and
paid the exercise price for the purchased Ordinary Shares.

II. INCENTIVE OPTIONS

     The terms and conditions specified below shall be applicable to all Incentive Options granted
under this Article Two. Incentive Options may only be granted to individuals who are Employees of
the Corporation. Options which are specifically designated as Non-Statutory Options when issued
under the Plan shall not be subject to such terms and conditions. Except as so modified by this
Section II, the provisions of Articles One, Two and Four of the Plan shall apply to all Incentive
Options granted hereunder.

     A. Dollar Limitation. The aggregate Fair Market Value (determined as of the respective date
or dates of grant) of the Ordinary Shares for which one or more options granted to any Employee
under this Plan (or any other option plan of the Corporation or its parent or subsidiary
corporations) may for the first time become exercisable as incentive stock options under the Code
during any one calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000).
To the extent the Employee holds two (2) or more such options which become exercisable for the
first time in the same calendar year, the foregoing limitation on the exercisability of such
options as incentive stock options under the Code shall be applied on the basis of the order in
which such options are granted. Should the number of Ordinary Shares for which any Incentive Option
first becomes exercisable in any calendar year exceed the applicable One Hundred Thousand Dollar
($100,000) limitation, then that option may nevertheless be exercised in such calendar year for the
excess number of shares as a non-statutory option under the Code.

     B. 10% Stockholder. If any individual to whom an Incentive Option is granted is the owner of
stock (as determined under Section 424(d) of the Code) possessing ten percent (10%) or more of the
total combined voting power of all classes of stock of the Corporation or any one of its parent or
subsidiary corporations, then the exercise price per Ordinary Share shall not be less than the
greater of (i) one hundred and ten percent (110%) of the Fair Market Value per Ordinary Share on
the grant date or (ii) the par value of such Ordinary Share.

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III. CORPORATE TRANSACTION/CHANGE IN CONTROL

     A. In the event of any Corporate Transaction, each option which is at the time outstanding
under this Article Two 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 Ordinary Shares at the time subject to such option and may be
exercised for all or any portion of such Ordinary Shares. However, an outstanding option under this
Article Two 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 Plan Administrator at the time of the option grant. The determination of option
comparability under clause (i) above shall be made by the Plan Administrator, and its determination
shall be final, binding and conclusive.

     B. Immediately following the consummation of the Corporate Transaction, all outstanding
options under this Article Two shall terminate and cease to remain outstanding, except to the
extent assumed by the successor corporation or its parent company.

     C. Each outstanding option under this Article Two which is assumed in connection with the
Corporate Transaction or is otherwise to continue in effect shall be appropriately adjusted,
immediately after such Corporate Transaction, to apply and pertain to the number and class of
securities which would have been issued to the option holder, in consummation of such Corporate
Transaction, had such person exercised the option immediately prior to such Corporate Transaction.
Appropriate adjustments shall also be made to the exercise price payable per share, provided the
aggregate exercise price payable for such securities shall remain the same. In addition, the class
and number of securities available for issuance under the Plan following the consummation of the
Corporate Transaction shall be appropriately adjusted.

     D. The Plan Administrator shall have the discretion, exercisable either in advance of any
actually-anticipated Corporate Transaction or at the time of an actual Corporate Transaction, to
provide (upon such terms as it may deem appropriate) for the automatic acceleration of one or more
outstanding options granted under the Plan which are assumed or replaced in the Corporate
Transaction and do not otherwise accelerate at that time, in the event the Optionee’s Service
should subsequently terminate within a designated period following such Corporate Transaction.

     E. The Plan Administrator shall have the discretionary authority, exercisable either in
advance of any actually-anticipated Change in Control or at the time of an actual Change in
Control, to provide for the automatic acceleration of one or more outstanding options under this
Article Two upon the occurrence of the Change in Control. The Plan Administrator shall also have
full power and authority to condition any such option acceleration upon the subsequent termination
of the Optionee’s Service within a specified period following the Change in Control.

     F. Any options accelerated in connection with the Change in Control shall remain fully
exercisable until the expiration or sooner termination of the option term.

     G. The grant of options under this Article Two shall in no way affect the right of the
Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure
or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business
or assets.

     H. The portion of any Incentive Option accelerated under this Section III in connection with a
Corporate Transaction or Change in Control shall remain exercisable as an incentive stock option
under the Code only to the extent the dollar limitation of Section II of this Article Two is not
exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option
shall be exercisable as a non-statutory option under the Code.

IV. CANCELLATION AND REGRANT OF OPTIONS

     The Plan Administrator shall have the authority to effect, at any time and from time to time,
with the consent of the

-9-

 

affected Optionees, the cancellation of any or all outstanding options
under this Article Two and to grant in substitution new options under the Plan covering the same or
different numbers of Ordinary Shares but with an exercise price per Ordinary Share not less than
(i) eighty-five percent (85%) of the Fair Market Value per Ordinary Share on the new grant date or
(ii) one hundred percent (100%) of such Fair Market Value in the case of an Incentive Option, but
in no event shall the exercise price per Ordinary Share be less than the par value of such Ordinary
Share.

V. STOCK APPRECIATION RIGHTS

     A. Provided and only if the Plan Administrator determines in its discretion to implement the
stock appreciation right provisions of this Section V, one or more Optionees may be granted the
right, exercisable upon such terms and conditions as the Plan Administrator may establish, to
surrender all or part of an unexercised option under this Article Two in exchange for a
distribution from the Corporation in an amount equal to the excess of (i) the Fair Market Value (on
the option surrender date) of the number of vested Ordinary Shares for which the surrendered option
(or surrendered portion thereof) is at the time exercisable over (ii) the aggregate exercise price
payable for such vested Ordinary Shares.

     B. No surrender of an option shall be effective hereunder unless it is approved by the Plan
Administrator. If the surrender is so approved, then the distribution to which the Optionee shall
accordingly become entitled under this Section V may be made in Ordinary Shares valued at Fair
Market Value on the option surrender date, in cash, or partly in Ordinary Shares and partly in
cash, as the Plan Administrator shall in its sole discretion deem appropriate.

     C. If the surrender of an option is rejected by the Plan Administrator, then the Optionee
shall retain whatever rights the Optionee had under the surrendered option (or surrendered portion
thereof) on the option surrender date and may exercise such rights at any time prior to the later
of (i) five (5) business days after the receipt of the rejection notice or (ii) the last day on
which the option is otherwise exercisable in accordance with the terms of the instrument evidencing
such option, but in no event may such rights be exercised more than five (5) years after the date
of the option grant.

     D. One or more Section 16 Insiders may, in the Plan Administrator’s sole discretion, be
granted limited stock appreciation rights in tandem with their outstanding options under this
Article Two. Upon the occurrence of a Hostile Take-Over, the Section 16 Insider shall have a thirty
(30)-day period in which he or she may surrender any outstanding options with such a limited stock
appreciation right in effect for at least six (6) months to the Corporation, to the extent such
option is at the time exercisable for vested Ordinary Shares. The Section 16 Insiders shall in
return be entitled to a cash distribution from the Corporation in an amount equal to the excess of
(i) the Take-Over Price of the vested Ordinary Shares for which each surrendered option (or
surrendered portion thereof) is at the time exercisable over (ii) the aggregate exercise price
payable for such Ordinary Shares. The cash distribution payable upon such option surrender shall be
made within five (5) days following the date the option is surrendered to the Corporation. Neither
the approval of the Plan Administrator nor the consent of the Board shall be required in connection
with such option surrender and cash distribution. Any unsurrendered portion of the option shall
continue to remain outstanding and become exercisable in accordance with the terms of the
instrument evidencing such grant.

     E. The Ordinary Shares subject to any option surrendered for an appreciation distribution
pursuant to this Section V shall not be available for subsequent issuance under the Plan.

ARTICLE THREE

AUTOMATIC OPTION GRANT PROGRAM

I. ELIGIBILITY

     A. Eligible Directors. The individuals eligible to receive automatic option grants pursuant
to the provisions of this Article Three shall be limited to (i) those individuals who are serving
as non-employee Board members on the Initial Automatic Grant Date, (ii) those individuals who are
first elected or appointed as non-employee Board members after the Initial Automatic Grant Date,
whether through appointment by the Board or election by the Corporation’s stockholders, and (iii)
those individuals who continue to serve as non-employee Board members at one or more Annual

-10-

 

Stockholders Meetings held after the Underwriting Execution Date. In no event, however, may any
non-employee Board member who is a Singapore resident participate in this Automatic Option Grant
Program. Any non-employee Board member eligible to participate in the Automatic Option Grant
Program pursuant to the foregoing criteria shall be designated an Eligible Director for purposes of
the Plan.

     B. Limitation. Except for the option grants to be made pursuant to the provisions of this
Automatic Option Grant Program, a non-employee Board member shall not be entitled to receive any
additional option grants or stock issuances under this Plan or any other stock plan of the
Corporation (or its parent or subsidiaries) during his or her period of Board service.

II. TERMS AND CONDITIONS OF AUTOMATIC OPTION GRANTS

     A. Grant Dates. Option grants shall be made under this Article Three on the dates specified
below:

	 	1.	 	Initial Grant.

          Each individual serving as an Eligible Director on the Initial Automatic Grant Date shall
automatically be granted on such date a Non-Statutory Option to purchase 30,000 Ordinary Shares
upon the terms and conditions of this Article Three.

          Each individual who first becomes an Eligible Director after the Initial Automatic Grant Date,
whether through election by the stockholders or appointment by the Board, shall automatically be
granted, at the time of such initial election or appointment, a Non-Statutory Option to purchase
30,000* Ordinary Shares upon the terms and conditions of this Article Three.

	 	2.	 	Annual Grant. On the date of each Annual Stockholders Meeting held after the
Underwriting Execution Date, each individual who is at that time serving as an Eligible
Director, whether or not such individual is standing for reelection as a Board member
at that Annual Meeting, shall automatically be granted a Non-Statutory Option to
purchase an additional 6,000* Ordinary Shares upon the terms and conditions of this
Article Three, provided such individual has served as a Board member for at least six
(6) months.

     B. There shall be no limit on the number of such 6,000* Ordinary Share option grants any one
Eligible Director may receive over his or her period of Board service. The number of Ordinary
Shares for which the automatic option grants are to be made to each newly elected or continuing
Eligible Director shall be subject to periodic adjustment pursuant to the applicable provisions of
Section VI.C. of Article One.

     C. Exercise Price. The exercise price per Ordinary Share subject to each automatic option
grant made under this Article Three shall be determined as follows:

	 	1.	 	For each automatic option grant made on the Initial Automatic Grant Date, the
exercise price per Ordinary Share shall be equal to the Fair Market Value per Ordinary
Share on such date as shall be determined by the Plan Administrator after taking into
account such factors as the Plan Administrator deems relevant.
	 
	 	2.	 	For all other automatic option grants, the exercise price per Ordinary Share
shall be equal to one hundred percent (100%) of the Fair Market Value per Ordinary
Share on the automatic grant date, but in no event less than the par value of such
Ordinary Share.

     D. Payment. The exercise price shall be payable in one of the alternative forms specified
below:

	 	1.	 	full payment in cash or check made payable to the Corporation’s order; or
	 
	 	2.	 	to the extent the option is exercised for vested Ordinary Shares, full payment
through a sale and

-11-

 

	 	 	 	remittance procedure pursuant to which the non-employee Board member
shall provide concurrent irrevocable written instructions (i) to a
Corporation-designated brokerage firm to effect the immediate sale of the purchased
Ordinary Shares and remit to the Corporation, out of the sale proceeds available on the
settlement date, sufficient funds to cover the aggregate exercise price payable for the
purchased Ordinary Shares and (ii) to the Corporation to deliver the certificates for
the purchased Ordinary Shares directly to such brokerage firm in order to complete the
sale transaction.

     E. Option Term. Each automatic grant under this Article Three shall have a maximum term of
ten (10) years measured from the automatic grant date, except that any grant to a person who is not
an employee of the Company or a related entity will have a maximum term of five (5) years.

     F. Exercisability. Each automatic grant shall become exercisable for the Ordinary Shares
subject to that grant in a series of successive equal monthly installments upon the Optionee’s
completion of each month of Board service over the twenty-four (24) month period measured from the
automatic grant date. The exercisability of each such grant shall be subject to acceleration as
provided in Section II.G and Section III of this Article Three. In no event, however, shall any
automatic option grant become exercisable for any additional Ordinary Shares after the Optionee’s
cessation of Board service.

     G. Transferability. During the lifetime of the Optionee, each automatic option grant,
together with the limited stock appreciation right pertaining to such option, shall be exercisable
only by the Optionee and shall not be assignable or transferable by the Optionee, except for a
transfer of the option effected by will or the laws of descent or distribution following the
Optionee’s death. Notwithstanding the foregoing, (i) Optionees may transfer or assign their options
(other than Incentive Options) to family members (as defined below) through a gift or domestic
relations order (and not in a transfer for value), and (ii) if the terms of the applicable Award
Agreement so provide, Optionees 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 award agreement. The
Optionee 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 establish such rules as it deems necessary to ensure that all such assignments are
made in compliance with all applicable laws. For purposes of this paragraph, “family member”
includes any 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, including adoptive relationships, any person sharing the employee’s household
(other than a tenant or employee), a trust in which these persons have more than fifty percent of
the beneficial interest, a foundation in which these persons (or the employee) control the
management of assets, and any other entity in which these persons (or the employee) own more than
fifty percent of the voting interests.

     H. Termination of Board Service.

	 	1.	 	Should the Optionee cease to serve as a Board member for any reason (other than
death or Permanent Disability) while holding one or more automatic option grants under
this Article Three, then such individual shall have a six (6)-month period following
the date of such cessation of Board service in which to exercise each such option for
any or all of the option shares for which the option is exercisable at the time of such
cessation of Board service. Each such option shall immediately terminate and cease to
remain outstanding, at the time of the Optionee’s cessation of Board service, with
respect to any option shares for which the option is not otherwise at that time
exercisable.
	 
	 	2.	 	Should the Optionee die within six (6) months after cessation of Board service,
then any automatic option grant held by the Optionee at the time of death may
subsequently be exercised, for any or all of the option shares for which the option is
exercisable at the time of the Optionee’s cessation of Board service (less any option
 shares subsequently purchased by the Optionee prior to death), by the personal
representative of the Optionee’s estate or by the person or persons to whom the option
is transferred pursuant to the Optionee’s will or in accordance with the laws of
descent and distribution. The right to exercise each such option shall lapse upon the
expiration of the twelve (12)-month period measured from the date of the Optionee’s
death.

-12-

 

	 	3.	 	Should the Optionee die or become Permanently Disabled while serving as a Board
member, then each automatic option grant held by such Optionee under this Article Three
shall immediately become exercisable for all the Ordinary Shares subject to that
option, and the Optionee (or the representative of the Optionee’s estate or the person
or persons to whom the option is transferred upon the Optionee’s death) shall have a
twelve (12)-month period following the date of the Optionee’s cessation of Board
service in which to exercise such option for any or all of those Ordinary Shares as
fully-vested shares.
	 
	 	4.	 	In no event shall any automatic grant under this Article Three remain
exercisable after the expiration date of the five (5)-year option term. Upon the
expiration of the applicable post-service exercise period under subparagraphs 1.
through 3. above or (if earlier) upon the expiration of the five (5)-year option term,
the automatic grant shall terminate and cease to be outstanding for any option shares
for which the option was exercisable at the time of the Optionee’s cessation of Board
service but for which such option was not otherwise exercised.

     I. Stockholder Rights. The holder of an automatic option grant under this Article Three shall
have none of the rights of a stockholder with respect to the Ordinary Shares subject to such option
until such individual shall have exercised the option and paid the exercise price for the purchased
Ordinary Shares.

     J. Remaining Terms. The remaining terms and conditions of each automatic option grant shall
be as set forth in the form Automatic Stock Option Agreement attached as Exhibit A.

III. CORPORATE TRANSACTION/CHANGE IN CONTROL/HOSTILE TAKE-OVER

     A. In the event of any Corporate Transaction, each option at the time outstanding under this
Article Three but not otherwise fully exercisable shall, immediately prior to the specified
effective date for the Corporate Transaction, automatically accelerate and become fully exercisable
for all of the Ordinary Shares at the time subject to that option and may be exercised for all or
any portion of those shares as fully vested Ordinary Shares. Immediately following the consummation
of the Corporate Transaction, all automatic option grants under this Article Three shall terminate
and cease to remain outstanding.

     B. In connection with any Change in Control of the Corporation, each option at the time
outstanding under this Article Three but not otherwise fully exercisable shall, immediately prior
to the specified effective date for the Change in Control, automatically accelerate and become
fully exercisable for all of the Ordinary Shares at the time subject to that option and may be
exercised for all or any portion of those shares as fully vested Ordinary Shares. Each such option
shall remain so exercisable for the option shares until the expiration or sooner termination of the
option term.

     C. Upon the occurrence of a Hostile Take-Over, the Optionee shall have a thirty (30)-day
period in which to surrender to the Corporation each option held by him or her under this Article
Three for a period of at least six (6) months. The Optionee shall in return be entitled to a cash
distribution from the Corporation in an amount equal to the excess of (i) the Take-Over Price of
the Ordinary Shares at the time subject to the surrendered option (whether or not the option is
otherwise at the time exercisable for those Ordinary Shares) over (ii) the aggregate exercise price
payable for such Ordinary Shares. Such cash distribution shall be paid within five (5) days
following the surrender of the option to the Corporation. Neither the approval of the Plan
Administrator nor the consent of the Board shall be required in connection with such option
surrender and cash distribution. The Ordinary Shares subject to each option surrendered in
connection with the Hostile Take-Over shall NOT be available for subsequent issuance under the
Plan.

     D. The automatic option grants outstanding under this Article Three shall in no way affect the
right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or
business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any
part of its business or assets.

IV. AMENDMENT OF THE AUTOMATIC GRANT PROVISIONS

     A. Limited Amendments. The provisions of this Automatic Option Grant Program, together with
the automatic option grants outstanding under this Article Three, may not be amended at intervals
more frequently than once every six

-13-

 

(6) months, other than to the extent necessary to comply with
applicable U.S. income tax laws and regulations.

ARTICLE FOUR

MISCELLANEOUS

I. LOANS OR INSTALLMENT PAYMENTS

     A. The Plan Administrator may, in its discretion but subject to any prohibition imposed by any
applicable laws, assist any Optionee, to the extent such Optionee is an Employee (including an
Optionee or Participant who is an officer of the Corporation), in the exercise of one or more stock
options granted to such Optionee under the Discretionary Option Grant Program, including the
satisfaction of any Federal, state and local income and employment tax obligations arising
therefrom, by (i) authorizing the extension of a loan from the Corporation to such Optionee or (ii)
permitting the Optionee to pay the exercise price for the purchased shares in installments over a
period of years. The terms of any loan or installment method of payment (including the interest
rate and terms of repayment) shall be upon such terms as the Plan Administrator specifies in the
applicable option agreement or otherwise deems appropriate under the circumstances. Loans or
installment payments may be authorized with or without security or collateral. However, the maximum
credit available to the Optionee may not exceed the exercise price of the acquired Ordinary Shares
(less the par value of such shares) plus any Federal, state and local income and employment tax
liability incurred by the Optionee in connection with the acquisition of the Ordinary Shares.

     B. The Plan Administrator may, in its absolute discretion, determine that one or more loans
extended under this financial assistance program shall be subject to forgiveness by the Corporation
in whole or in part upon such terms and conditions as the Plan Administrator may deem appropriate.

     C. All financial assistance provided under this Section I of Article Four shall be effected in
compliance with the applicable provisions of Section 76(9)(b) of the Companies Act, Chapter 50 of
Singapore (or any successor statutory provision).

II. AMENDMENT OF THE PLAN AND AWARDS

     A. 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, (i) no such amendment or
modification shall adversely affect rights and obligations with respect to options at the time
outstanding under the Plan, unless the Optionee consents to such amendment, and (ii) any amendment
made to the Automatic Option Grant Program (or any options outstanding thereunder) shall be in
compliance with the limitation of Section IV of Article Three. In addition, the Board may not,
without the approval of the Corporation’s stockholders, amend the Plan to (i) materially increase
the maximum number of Ordinary Shares issuable under the Plan or the number of Ordinary Shares for
which options may be granted per newly-elected or continuing Eligible Director under Article Three
of the Plan or the maximum number of Ordinary Shares for which any one individual participating in
the Plan may be granted stock options over the term of the Plan, except for permissible adjustments
under Section VI.C. of Article One, (ii) materially modify the eligibility requirements for plan
participation or (iii) materially increase the benefits accruing to plan participants.

     B. Options to purchase Ordinary Shares may be granted under the Discretionary Option Grant
Program which are in excess of the number of Ordinary Shares then available for issuance under the
Plan. However, no such option shall become exercisable in whole or in part for the excess Ordinary
Shares subject to that option until stockholder approval is obtained for a sufficient increase in
the number of Ordinary Shares available for issuance under the Plan. If such stockholder approval
is not obtained within twelve (12) months after the date the first such excess option grants are
made, then such options shall terminate and cease to be exercisable with respect to the excess
number of Ordinary Shares, and no further option grants shall be made under the Plan.

III. TAX WITHHOLDING

     The Corporation’s obligation to deliver Ordinary Shares upon the exercise of stock options for
such shares under the Plan shall be subject to the satisfaction of all applicable income and
employment tax withholding requirements.

-14-

 

IV. EFFECTIVE DATE AND TERM OF PLAN

     A. This Plan became effective when adopted by the Board and approved by the stockholders in
1993. On June 8, 1995, the Board approved an amendment to the Plan to (i) increase the aggregate
number of Ordinary Shares issuable over the term thereof from 7,200,000* shares to 12,000,000*
shares and (ii) increase the number of Ordinary Shares for which options may be granted to any one
individual from 2,400,000* shares to 4,000,000* shares. The shareholders approved those amendments
at the 1995 Annual Meeting.

     B. In June 1996, the Board amended the Plan to (i) increase the aggregate number of Ordinary
Shares issuable over the term of the Plan from 6,000,000* Ordinary Shares to 8,000,000* Ordinary
Shares. The stockholders approved such amendment at the 1996 Annual Meeting.

     C. On August 15, 1996, the Board amended and restated the Plan to authorize, among other
things, the separate but concurrent jurisdiction of the Discretionary Option Grant Program by the
Primary Committee and one or more Secondary Committees of the Board, with the Primary Committee to
have the sole authority to administer such program with respect to Section 16 Insiders.

     D. In September 1997, the Board approved an amendment to the Plan to increase the aggregate
number of Ordinary Shares issuable over the term thereof from 16,000,000* to 20,800,000* shares.
The shareholders approved those amendments at the 1997 Annual Meeting.

     E. In August 1998, the Board approved an amendment to the Plan to increase the aggregate
number of Ordinary Shares issuable over the term thereof from 20,800,000* to 28,800,000* shares.
The shareholders approved this amendment at the 1998 Annual Meeting.

     F. In July 1999, the Board approved an amendment to the Plan to increase the aggregate number
of Ordinary Shares issuable over the term of the Plan from 28,800,000* Ordinary Shares to
32,800,000* Ordinary Shares. The shareholders approved this amendment at the 1999 Annual Meeting.

     G. In November 1999, the Board approved an amendment to the Plan to increase the aggregate
number of Ordinary Shares issuable over the term of the Plan from 32,800,000* Ordinary Shares to
40,800,000* Ordinary Shares. The shareholders approved this amendment at the 2000 Extraordinary
General Meeting.

     H. In September 2000, the Board approved an amendment to the Plan to increase the aggregate
number of Ordinary Shares issuable over the term of the Plan from 40,800,000* Ordinary Shares to
50,400,000* Ordinary Shares. The shareholders approved this amendment at the 2000 Annual Meeting.

     I. The Plan shall terminate upon the earlier of (i) November 30, 2003 or (ii) the date on
which all Ordinary Shares available for issuance under the Plan shall have been issued or cancelled
pursuant to the exercise, surrender or cash-out of the options granted under the Plan. If the date
of termination is determined under clause (i) above, then all option grants outstanding on such
date shall thereafter continue to have force and effect in accordance with the provisions of the
instruments evidencing such grants.

V. USE OF PROCEEDS

     Any cash proceeds received by the Corporation from the sale of Ordinary Shares pursuant to
option grants under the Plan shall be used for general corporate purposes.

VI. REGULATORY APPROVALS

     A. The implementation of the Plan, the granting of any stock option or stock appreciation
right under the Plan, the issuance of any Ordinary Shares upon the exercise or surrender of the
stock options or stock appreciation rights granted hereunder shall be subject to the Corporation’s
procurement of all approvals and permits required by regulatory

-15-

 

authorities having jurisdiction
over the Plan, the stock options and stock appreciation rights granted under it and the Ordinary
Shares issued pursuant to it.

     B. No Ordinary Shares or other assets or securities shall be issued or delivered under this
Plan unless and until there shall have been compliance with (i) all applicable requirements of U.S.
and state securities laws, including the filing and effectiveness of the Form S-8 registration
statement for the Ordinary Shares issuable under the Plan, (ii) all applicable listing requirements
of any securities exchange on which the Ordinary Shares are then listed for trading and (iii) all
applicable requirements of Singapore law.

VII. NO EMPLOYMENT/SERVICE RIGHTS

     Neither the action of the Corporation in establishing the Plan, nor any action taken by the
Plan Administrator hereunder, nor any provision of the Plan shall be construed so as to grant any
individual the right to remain in the Service of the Corporation (or any parent or subsidiary
corporation) for any period of specific duration, and the Corporation (or any parent or subsidiary
corporation retaining the services of such individual) may terminate such individual’s Service at
any time and for any reason, with or without cause.

VIII. MISCELLANEOUS PROVISIONS

     A. Except to the extent otherwise expressly provided in the Plan, the right to acquire
Ordinary Shares or other assets or securities under the Plan may not be assigned, encumbered or
otherwise transferred by any Optionee.

     B. The provisions of the Plan shall inure to the benefit of, and be binding upon, the
Corporation and its successors or assigns, whether by Corporate Transaction or otherwise, and the
Participants and Optionees, the legal representatives of their respective estates, their respective
heirs or legatees and their permitted assignees.

VIX. OPTION EXCHANGE PROGRAM

          Notwithstanding any other provision of this Plan to the contrary, upon approval of this
amendment by the Corporation’s shareholders, the Board, the Plan Administrator or any designee of
the Board or the Plan Administrator may provide for, and the Corporation 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 Corporation 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 Corporation acquiring, directly or indirectly, a right or interest in the surrendered
options.

 

			
	*	 	Reflects the two-for-one stock splits in the form of a bonus issue (the equivalent of a stock
dividend) effective December 22, 1998, December 22, 1999 and October 16, 2000.

-16-exv10w05

Exhibit 10.05

SOLECTRON CORPORATION

2002 STOCK PLAN

Amended as of July 13, 2009

     1. Purposes of the Plan. The purposes of this 2002 Stock Plan are:

	 	•	 	to attract and retain the best available personnel for positions of
substantial responsibility,
	 
	 	•	 	to provide additional incentive to Employees, Directors and Consultants, and
	 
	 	•	 	to promote the success of the Company’s business.

          Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options,
as determined by the Administrator at the time of grant.

     2. Definitions. As used herein, the following definitions shall apply:

          (a) “Administrator” means the Board or any of its Committees as shall be administering
the Plan, in accordance with Section 4 of the Plan.

          (b) “Applicable Laws” means the requirements relating to the administration of stock
option plans under U. S. state corporate laws, U.S. federal and state securities laws, the Code,
any stock exchange or quotation system on which the Common Stock is listed or quoted and the
applicable laws of any foreign country or jurisdiction where Options are, or will be, granted under
the Plan.

          (c) “Board” means the Board of Directors of the Company.

          (d) “Change in Control” means the occurrence of any of the following events:

               (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company’s then outstanding voting securities; or

               (ii) A change in the composition of the Board occurring within a two-year period, as a result
of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors”
will mean directors who either (A) are directors of the Company as of the date hereof, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of at least a majority
of the Incumbent Directors at the time of such election or nomination (but will not include an
individual whose election or nomination is in connection with an actual or threatened proxy contest
relating to the election of directors to the Company); or

               (iii) The consummation of the sale or disposition by the Company of all or substantially all
of the Company’s assets; or

               (iv) The consummation of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity or its parent) at least fifty
percent (50%) of the total voting power represented by the

 

 

voting securities of the Company or such surviving entity or its parent outstanding
immediately after such merger or consolidation.

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

          (f) “Committee” means a committee of Directors appointed by the Board in accordance
with Section 4 of the Plan.

          (g) “Common Stock” means the common stock of the Company.

          (h) “Company” means Solectron Corporation, a Delaware corporation.

          (i) “Consultant” means any natural person, including an advisor, engaged by the
Company or a Parent or Subsidiary to render services to such entity.

          (j) “Director” means a member of the Board.

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

          (l) “Employee” means any person, including Officers and Directors, employed by the
Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between
locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. For
purposes of Incentive Stock Options, no such leave may exceed ninety days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of
a leave of absence approved by the Company is not so guaranteed, then three (3) months following
the 91st day of such leave, any Incentive Stock Option held by the Optionee shall cease
to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory
Stock Option. Neither service as a Director nor payment of a director’s fee by the Company shall
be sufficient to constitute “employment” by the Company.

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

          (n) “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows:

               (i) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or
the closing bid, if no sales were reported) as quoted on such exchange or system on the day of
determination, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable;

               (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between
the high bid and low asked prices for the Common Stock on the day of determination, as reported in
The Wall Street Journal or such other source as the Administrator deems reliable;

               (iii) In the absence of an established market for the Common Stock, the Fair Market Value
shall be determined in good faith by the Administrator.

          (o) “Incentive Stock Option” means an Option intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

          (p) “Inside Director” means a Director who is an Employee.

-2-

 

          (q) “Nonstatutory Stock Option” means an Option not intended to qualify as an
Incentive Stock Option.

          (r) “Notice of Grant” means a written or electronic notice evidencing certain terms
and conditions of an individual Option grant. The Notice of Grant is part of the Option Agreement.

          (s) “Officer” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

          (t) “Option” means a stock option granted pursuant to the Plan.

          (u) “Option Agreement” means an agreement between the Company and an Optionee
evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject
to the terms and conditions of the Plan.

          (v) “Optioned Stock” means the Common Stock subject to an Option.

          (w) “Optionee” means the holder of an outstanding Option granted under the Plan.

          (x) “Outside Director” means a Director who is not an Employee.

          (y) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

          (z) “Plan” means this 2002 Stock Plan, as amended and restated.

          (aa) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3,
as in effect when discretion is being exercised with respect to the Plan.

          (bb) “Section 16(b) “ means Section 16(b) of the Exchange Act.

          (cc) “Service Provider” means an Employee, Director or Consultant.

          (dd) “Share” means a share of the Common Stock, as adjusted in accordance with Section
14 of the Plan.

          (ee) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing,
as defined in Section 424(f) of the Code.

     3. Stock Subject to the Plan. Subject to the provisions of Section 13 of the Plan,
the maximum aggregate number of Shares that may be optioned and sold under the Plan is 35,000,000
Shares plus (a) any Shares which have been reserved but not issued under the Company’s 1992 Stock
Option Plan (the “1992 Plan”) as of the date of stockholder approval of this Plan and (b) any
Shares returned to the 1992 Plan as a result of termination of options or repurchase of Shares
issued under the 1992 Plan. The Shares may be authorized, but unissued, or reacquired Common
Stock.

          If an Option expires or becomes unexercisable without having been exercised in full, the
unpurchased Shares which were subject thereto shall become available for future grant or sale under
the Plan (unless the Plan has terminated); provided, however, that Shares that have
actually been issued under the Plan shall not be returned to the Plan and shall not become
available for future distribution under the Plan, except that if Shares of restricted stock are
repurchased by the Company at their original purchase price, such Shares shall become available for
future grant under the Plan.

-3-

 

     4. Administration of the Plan.

          (a) Procedure.

               (i) Multiple Administrative Bodies. Different Committees with respect to different
groups of Service Providers may administer the Plan.

               (ii) Section 162(m). To the extent that the Administrator determines it to be
desirable to qualify Options granted hereunder as “performance-based compensation” within the
meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more
“outside directors” within the meaning of Section 162(m) of the Code.

               (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt
under Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the
requirements for exemption under Rule 16b-3.

               (iv) Other Administration. Other than as provided above, the Plan shall be
administered by (A) the Board or (B) a Committee, which committee shall be constituted to satisfy
Applicable Laws.

          (b) Powers of the Administrator. Subject to the provisions of the Plan, and in the
case of a Committee, subject to the specific duties delegated by the Board to such Committee, the
Administrator shall have the authority, in its discretion:

               (i) to determine the Fair Market Value;

               (ii) to select the Service Providers to whom Options may be granted hereunder;

               (iii) to determine the number of shares of Common Stock to be covered by each Option granted
hereunder;

               (iv) to approve forms of agreement for use under the Plan;

               (v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any
Option granted hereunder. Such terms and conditions include, but are not limited to, the exercise
price, the time or times when Options may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or
limitation regarding any Option or the Shares relating thereto, based in each case on such factors
as the Administrator, in its sole discretion, shall determine;

               (vi) to construe and interpret the terms of the Plan and awards granted pursuant to the Plan;

               (vii) to establish, amend and rescind rules and regulations relating to the Plan, including
rules and regulations relating to sub-plans established for the purpose of satisfying applicable
foreign laws;

               (viii) to modify or amend each Option (subject to Section 15(c) of the Plan), including the
discretionary authority to extend the post-termination exercisability period of Options longer than
is otherwise provided for in the Plan;

               (ix) to allow Optionees to satisfy withholding tax obligations by electing to have the Company
withhold from the Shares to be issued upon exercise of an Option that number of Shares having a
Fair Market Value equal to the minimum amount required to be withheld. The Fair Market Value of
the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is
to be determined. All elections by an Optionee to have Shares withheld for this purpose shall be
made in such form and under such conditions as the Administrator may deem necessary or advisable;

-4-

 

               (x) to authorize any person to execute on behalf of the Company any instrument required to
effect the grant of an Option previously granted by the Administrator;

               (xi) to correct any defect, supply any omission, or reconcile any inconsistency in the Plan,
or in any Option Agreement, in a manner and to the extent it shall deem necessary, all of which
determinations and interpretations made by the Administrator shall be conclusive and binding on all
Optionees, any other holders of Options and on their legal representatives and beneficiaries; and

               (xii) except to the extent prohibited by, or impermissible in order to obtain treatment
desired by the Administrator under, applicable law or rule, to allocate or delegate all or any
portion of its powers and responsibilities to any one or more of its members or to any person(s)
selected by it, subject to revocation or modification by the Administrator of such allocation or
delegation.

               (xiii) to make all other determinations deemed necessary or advisable for administering the
Plan.

          (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations
and interpretations shall be final and binding on all Optionees and any other holders of Options.

     5. Eligibility. Nonstatutory Stock Options may be granted to Service Providers.
Incentive Stock Options may be granted only to Employees.

     6. Limitations.

          (a) Each Option shall be designated in the Option Agreement as either an Incentive Stock
Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent
that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options
are exercisable for the first time by the Optionee during any calendar year (under all plans of the
Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as
Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options shall be
taken into account in the order in which they were granted. The Fair Market Value of the Shares
shall be determined as of the time the Option with respect to such Shares is granted.

          (b) Neither the Plan nor any Option shall confer upon an Optionee any right with respect to
continuing the Optionee’s relationship as a Service Provider with the Company, nor shall they
interfere in any way with the Optionee’s right or the Company’s right to terminate such
relationship at any time, with or without cause.

          (c) The following limitation shall apply to grants of Options:

               (i) No Service Provider shall be granted, in any fiscal year of the Company, Options to
purchase more than 750,000 Shares.

               (ii) The foregoing limitation shall be adjusted proportionately in connection with any change
in the Company’s capitalization as described in Section 13.

     7. Term of Plan. Subject to Section 20 of the Plan, the Plan shall become effective
upon its adoption by the Board. It shall continue in effect for a term of ten (10) years unless
terminated earlier under Section 15 of the Plan.

     8. Term of Option. The term of each Option shall be stated in the Option Agreement.
In the case of an Incentive Stock Option, the term shall be ten (10) years from the date of grant
or such shorter term as may be provided in the Option Agreement. Moreover, in the case of an
Incentive Stock Option granted to an Optionee who, at the time the Incentive Stock Option is
granted, owns stock representing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock
Option shall be five (5) years from the date of grant or such shorter term as may be provided in
the Option Agreement.

-5-

 

     9. Option Exercise Price and Consideration.

          (a) Exercise Price. The per share exercise price for the Shares to be issued pursuant
to exercise of an Option shall be determined by the Administrator, subject to the following:

               (i) In the case of an Incentive Stock Option

                    (A) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of stock of the Company
or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant.

                    (B) granted to any Employee other than an Employee described in paragraph (A) immediately
above, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share
on the date of grant.

               (ii) In the case of a Nonstatutory Stock Option, the per Share exercise price shall be
determined by the Administrator. In the case of a Nonstatutory Stock Option intended to qualify as
“performance-based compensation” within the meaning of Section 162(m) of the Code, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

               (iii) Notwithstanding the foregoing, Options may be granted with a per Share exercise price of
less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or
other corporate transaction.

          (b) Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator shall fix the period within which the Option may be exercised and shall determine any
conditions that must be satisfied before the Option may be exercised.

          (c) Form of Consideration. The Administrator shall determine the acceptable form of
consideration for exercising an Option, including the method of payment. In the case of an
Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at
the time of grant. Such consideration may consist of (without limitation):

               (i) cash;

               (ii) check;

               (iii) other Shares, provided Shares acquired directly or indirectly from the Company, (A) have
been owned by the Optionee for more than six (6) months on the date of surrender, and (B) have a
Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as
to which said Option shall be exercised;

               (iv) consideration received by the Company under a cashless exercise program implemented by
the Company in connection with the Plan;

               (v) a reduction in the amount of any Company liability to the Optionee, including any
liability attributable to the Optionee’s participation in any Company-sponsored deferred
compensation program or arrangement;

               (vi) any combination of the foregoing methods of payment; or

               (vii) such other consideration and method of payment for the issuance of Shares to the extent
permitted by Applicable Laws.

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     10. Exercise of Option.

          (a) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder
shall be exercisable according to the terms of the Plan and at such times and under such conditions
as determined by the Administrator and set forth in the Option Agreement. Unless the Administrator
provides otherwise, vesting of Options granted hereunder shall be suspended during any unpaid leave
of absence. An Option may not be exercised for a fraction of a Share.

               An Option shall be deemed exercised when the Company receives: (i) written or electronic
notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise
the Option, and (ii) full payment for the Shares with respect to which the Option is exercised.
Full payment may consist of any consideration and method of payment authorized by the Administrator
and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall
be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee
and his or her spouse or in the name of a family trust of which the Optionee is a trustee. Until
the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company), no right to vote or receive dividends or any other
rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after
the Option is exercised; provided that if the Company shall be advised by counsel that certain
requirements under the Federal, state or foreign securities laws must be met before Shares may be
issued under this Plan, the Company shall notify all persons who have been issued Options, and the
Company shall have no liability for failure to issue Shares under any exercise of Options because
of delay while such requirements are being met or the inability of the Company to comply with such
requirements. No adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in Section 13 of the Plan.

               Exercising an Option in any manner shall decrease the number of Shares thereafter available,
both for purposes of the Plan and for sale under the Option, by the number of Shares as to which
the Option is exercised.

          (b) Termination of Relationship as a Service Provider. If an Optionee ceases to be a
Service Provider, other than upon the Optionee’s death or Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option Agreement to the extent that
the Option is vested on the date of termination (but in no event later than the expiration of the
term of such Option as set forth in the Option Agreement). In the absence of a specified time in
the Option Agreement, the Option shall remain exercisable for sixty (60) days following the
Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or
her entire Option, the Shares covered by the unvested portion of the Option shall revert to the
Plan. If, after termination, the Optionee does not exercise his or her Option within the time
specified by the Administrator, the Option shall terminate, and the Shares covered by such Option
shall revert to the Plan.

          (c) Disability of Optionee. If an Optionee ceases to be a Service Provider as a
result of the Optionee’s Disability, the Optionee may exercise his or her Option within such period
of time as is specified in the Option Agreement to the extent the Option is vested on the date of
termination (but in no event later than the expiration of the term of such Option as set forth in
the Option Agreement). In the absence of a specified time in the Option Agreement, the Option
shall remain exercisable for six (6) months following the Optionee’s termination. If, on the date
of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by
the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee
does not exercise his or her Option within the time specified herein, the Option shall terminate,
and the Shares covered by such Option shall revert to the Plan.

          (d) Death of Optionee. If an Optionee dies while a Service Provider, the Option may
be exercised following the Optionee’s death within such period of time as is specified in the
Option Agreement to the extent that the Option is vested on the date of death (but in no event may
the Option be exercised later than the expiration of the term of such Option as set forth in the
Option Agreement), by the Optionee’s designated beneficiary, provided such beneficiary has been
designated prior to the Optionee’s death in a form acceptable to the Administrator. If no such
beneficiary has been designated by the Optionee, then such Option may be exercised by the personal
representative of the Optionee’s estate or by the person(s) to whom the Option is transferred
pursuant to the Optionee’s will or in

-7-

 

accordance with the laws of descent and distribution. In the
absence of a specified time in the Option Agreement, the Option shall remain exercisable for nine
(9) months following the Optionee’s death. If, at the time of death, the Optionee
is not vested as to his or her entire Option, the Shares covered by the unvested portion of
the Option shall immediately revert to the Plan. If the Option is not so exercised within the time
specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

     11. Transferability of Options. Unless determined otherwise by the Administrator, an
Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee. If the Administrator makes an Option transferable,
such Option shall contain such additional terms and conditions as the Administrator deems
appropriate.

     12. Formula Option Grants to Outside Directors. Outside Directors shall be
automatically granted Options each year in accordance with the following provisions:

          (a) All Options granted pursuant to this Section shall be Nonstatutory Stock Options and,
except as otherwise provided herein, shall be subject to the other terms and conditions of the
Plan.

          (b) Each person who first becomes an Outside Director on or after January 7, 2004, whether
through election by the stockholders of the Company or appointment by the Board to fill a vacancy,
shall be automatically granted an Option to purchase 20,000 Shares (the “First Option”) on the date
he or she first becomes an Outside Director.

          (c) Each Outside Director shall be automatically granted an Option to purchase 20,000 Shares
(a “Full Subsequent Option”) on December 1 of each year (beginning in 2004), provided such Outside
Director was an Outside Director on or before the last day of the first quarter of the fiscal year
of the Company just ended.

          (d) On December 1 of each year, each Outside Director who was not an Outside Director on or
before the last day of the first quarter of the fiscal year of the Company just ended shall be
automatically granted a pro-rated Full Subsequent Option (a “Partial Subsequent Option”) calculated
according to the number of quarters of service provided by such Outside Director in the just ended
fiscal year of the Company. For purposes of this calculation, service for only a portion of the
quarter shall be deemed service for the whole quarter.

          (e) Notwithstanding the provisions of subsections (b), (c) and (d) hereof, any exercise of an
Option granted before the Company has obtained stockholder approval of the Plan in accordance with
Section 19 hereof shall be conditioned upon obtaining such stockholder approval of the Plan in
accordance with Section 19 hereof.

          (f) The terms of each Option granted pursuant to subsections (b), (c) and (d) shall be as
follows:

               (i) the term of each Option shall be seven (7) years.

               (ii) each Option shall only be exercisable while the Outside Director remains a Director;
provided, however, that if the Outside Director (i) provides five (5) years of continuous service
as a Director or (ii) voluntarily resigns as a Director after attaining the age of seventy (70),
then each Option shall remain exercisable until the end of its seven-year term.

               (iii) the exercise price per Share shall be 100% of the Fair Market Value per Share on the
date of grant of an Option.

               (iv) each Option shall vest as to 1/12 of the Shares subject to such Option on each full month
following its date of grant provided that the Optionee continues to serve as a Director on such
date.

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          (g) The Administrator in its discretion may change and otherwise revise the terms of Options
granted under this Section 12, including, without limitation, the number of Shares and exercise
prices thereof, for Options granted on or after the date the Administrator determines to make any
such change or revision.

     13. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Change in
Control.

          (a) Changes in Capitalization. Subject to any required action by the stockholders of
the Company, the number of shares of Common Stock that have been authorized for issuance under the
Plan but as to which no Options have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Option, the number of Shares as well as the price per share of
Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting from a stock split,
reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any
other increase or decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company; provided, however, that conversion of any convertible securities
of the Company shall not be deemed to have been “effected without receipt of consideration.” Such
adjustment shall be made by the Board, whose determination in that respect shall be final, binding
and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of shares of Common
Stock subject to an Option.

          (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Optionee as soon as practicable
prior to the effective date of such proposed transaction. The Administrator in its discretion may
provide for an Optionee to have the right to exercise his or her Option until ten (10) days prior
to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which
the Option would not otherwise be exercisable. In addition, the Administrator may provide that any
Company repurchase option applicable to any Shares purchased upon exercise of an Option shall lapse
as to all such Shares, provided the proposed dissolution or liquidation takes place at the time and
in the manner contemplated. To the extent it has not been previously exercised, an Option will
terminate immediately prior to the consummation of such proposed action.

          (c) Merger or Change in Control. In the event of a merger of the Company with or into
another corporation, or a Change in Control, each outstanding Option shall be assumed or an
equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of
the successor corporation. With respect to Options granted to an Outside Director pursuant to
Section 13 that are assumed or substituted for, if following such assumption or substitution the
Optionee’s status as a Director or a director of the successor corporation, as applicable, is
terminated other than upon a voluntary resignation by the Optionee, then the Optionee shall fully
vest in and have the right to exercise the Option as to all of the Optioned Stock, including Shares
as to which it would not otherwise be vested or exercisable and such Option shall remain
exercisable for a period of three (3) months following such termination.

               In the event that the successor corporation refuses to assume or substitute for the Option,
the Optionee shall fully vest in and have the right to exercise the Option as to all of the
Optioned Stock, including Shares as to which it would not otherwise be vested or exercisable. If
an Option becomes fully vested and exercisable in lieu of assumption or substitution in the event
of a merger or Change in Control, the Administrator shall notify the Optionee in writing or
electronically that the Option shall be fully vested and exercisable for a period of thirty (30)
days, or such longer time as the Administrator may provide, from the date of such notice, and the
Option shall terminate upon the expiration of such period.

               For the purposes of this subsection (c), the Option shall be considered assumed if, following
the merger or Change in Control, the option or right confers the right to purchase or receive, for
each Share subject to the Option immediately prior to the merger or Change in Control, the
consideration (whether stock, cash, or other securities or property) received in the merger or
Change in Control by holders of Common Stock for each Share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or Change in Control is not solely common stock of the
successor corporation or its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of the

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Option, for each
Share subject to the Option, to be solely common stock of the successor corporation or its Parent
equal in fair market value to the per share consideration received by holders of Common Stock in
the merger or Change in Control.

     14. Date of Grant. The date of grant of an Option shall be, for all purposes, the
date on which the Administrator makes the determination granting such Option, or such other later
date as is determined by the Administrator. Notice of the determination shall be provided to each
Optionee within a reasonable time after the date of such grant.

     15. Amendment and Termination of the Plan.

          (a) Amendment and Termination. The Board may at any time amend, alter, suspend or
terminate the Plan.

          (b) Stockholder Approval. The Company shall obtain stockholder approval of any Plan
amendment to the extent necessary and desirable to comply with Applicable Laws and Section 15(c)
below.

          (c) Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan or any Option shall (i) impair the rights of any Optionee, unless mutually
agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and
signed by the Optionee and the Company or (ii) permit the reduction of the exercise price of an
Option after it has been granted (except for adjustments made pursuant to Section 13). Neither may
the Administrator, without the approval of the Company’s stockholders, cancel any outstanding
Option and replace it with a new Option with a lower exercise price, where the economic effect
would be the same as reducing the exercise price of the cancelled Option. Termination of the Plan
shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with
respect to Options granted under the Plan prior to the date of such termination.

     16. Conditions Upon Issuance of Shares.

          (a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an
Option unless the exercise of such Option and the issuance and delivery of such Shares shall comply
with Applicable Laws and shall be further subject to the approval of counsel for the Company with
respect to such compliance.

          (b) Investment Representations. As a condition to the exercise of an Option, the
Company may require the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

     17. Inability to Obtain Authority. The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

     18. Reservation of Shares. The Company, during the term of this Plan, will at all
times reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

     19. Stockholder Approval. The Plan shall be subject to approval by the stockholders
of the Company within twelve (12) months after the date the Plan is adopted. Such stockholder
approval shall be obtained in the manner and to the degree required under Applicable Laws.

     20. Option Exchange Program.

     Notwithstanding any other provision of this Plan to the contrary, upon approval of this
amendment by the shareholders of Flextronics International Ltd. (“Flextronics”), the Board of
Directors of Flextronics, the Compensation

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Committee of its board or any designee of its board or
the committee may provide for, and Flextronics may implement, a one-time Option exchange offer,
pursuant to which certain outstanding Options would, at the election of the holder of such Options
be surrendered to Flextronics 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 Flextronics acquiring, directly or
indirectly, a right or interest in the surrendered Options.

-11-

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