8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 7, 2005

FLEXTRONICS INTERNATIONAL LTD.

(Exact name of registrant as specified in its charter)

Singapore	0-23354	Not Applicable
(State or other jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One Marina Boulevard, # 28-00, Singapore	018989
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (65) 6890-7188

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01 Entry into a Material Definitive Agreement

Employment Agreement with Michael E. Marks

On July 8, 2005, Flextronics International USA, Inc. (“FIUI”), a U.S. subsidiary of Flextronics International Ltd. (the “Company”), entered into an employment agreement with Michael E. Marks, the Company’s Chief Executive Officer (the “Employment Agreement”). The Employment Agreement, which has an effective date of July 8, 2005, generally provides that Mr. Marks will (i) continue to serve as the Company’s Chief Executive Officer until a transition date of January 31, 2006 or such earlier date mutually agreed upon by the parties (the “Transition Date”) and (ii) subject to his re-election at the 2006 Annual General Meeting of Shareholders and unless earlier terminated as set forth in the Employment Agreement, serve as the Company’s Chairman of the Board of Directors for a transition period from the Transition Date until at least July 1, 2009 (the “Termination Date”).

The Employment Agreement outlines certain terms related to Mr. Marks’s continued service to the Company, including terms providing that Mr. Marks is to receive: (i) a salary at his current rate of pay until July 1, 2007, (ii) no cash bonuses beginning on the Transition Date, (iii) no director compensation for periods prior to the Termination Date, (iv) payment of a salary of $5,000 per month from July 1, 2007 until the Termination Date, (v) health insurance until the Termination Date and medical and dental benefits for the remainder of Mr. Marks’s life following the Termination Date, (vi) disability insurance until the Termination Date, (vii) the right to continue to make contributions to his 401(k) plan until the Termination Date, (viii) personal use of the Company’s corporate jets beginning on the Termination Date, subject to availability, and subject to Mr. Marks’s reimbursement of the Company’s variable cost as determined by FIUI in its sole discretion, (ix) no additional grants of stock options in Mr. Marks’s capacity as an employee, (x) acceleration of vesting of options if the Termination Date occurs prior to July 1, 2009 as a result of a resignation requested by the Board of Directors under certain circumstances, and (xi) no director equity compensation for periods prior to the Termination Date.

Under the Employment Agreement, Mr. Marks is bound by certain conflict of interest and non-solicitation restrictions, and will remain bound by an existing confidentiality agreement.

The foregoing description of the Employment Agreement is qualified in its entirety by reference to the complete terms and conditions of the Employment Agreement, which is filed as Exhibit 10.01 to this Report on Form 8-K.

Flextronics International USA, Inc. 2005 Senior Executive Deferred Compensation Plan

On July 7, 2005, the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) approved the Flextronics International USA, Inc. 2005 Senior Executive Deferred Compensation Plan (together with the related form of Rabbi Trust Agreement and the Deferral Agreement Form for 2005, the “Senior Executive Plan”). The following persons who are expected to be “named executive officers” (as defined in Item 402(a)(2) of Regulation S-K) for purposes of the Company’s Proxy Statement for the 2005 Annual General Meeting of Shareholders are initially designated as eligible to participate in the Senior Executive Plan: Michael McNamara (the Company’s Chief Operating Officer) and Thomas J. Smach (the Company’s Chief Financial Officer).

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Under the Senior Executive Plan, a participant may defer all or a part of his or her compensation in accordance with the applicable deferral agreement executed by the participant and FIUI. The deferred compensation is credited to a deferral account established for each participant under the Senior Executive Plan for recordkeeping purposes. Amounts credited to a deferral account are deemed to be invested in hypothetical investments selected by an investment manager on behalf of each participant. Under the Senior Executive Plan, which is an unfunded plan, FIUI entered into a trust agreement, providing for the establishment of an irrevocable trust into which FIUI is required to deposit cash or other assets as specified in the applicable deferral agreement, equal to the aggregate amount required to be credited to the participant’s deferral account, less any applicable taxes required to be withheld.

The foregoing description of the Senior Executive Plan, is qualified in its entirety by reference to the complete terms and conditions of the Senior Executive Plan, which is filed as Exhibit 10.02 to this Report on Form 8-K.

Deferred Bonuses

On July 7, 2005, the Compensation Committee approved award agreements (the “Award Agreements”) providing for deferred long-term incentive bonuses (the “Deferred Bonuses”) in return for services to be performed in the future for the benefit of the Company to the following persons who are expected to be “named executive officers” (as defined in Item 402(a)(2) of Regulation S-K) for purposes of the Company’s Proxy Statement for the 2005 Annual General Meeting of Shareholders: Michael McNamara (the Company’s Chief Operating Officer), Thomas J. Smach (the Company’s Chief Financial Officer) and Peter Tan (the Company’s President and Managing Director, Asia Operations).

The Deferred Bonuses will not be paid currently, but will be, in the case of Mr. McNamara and Mr. Smach, credited to such person’s deferral account under the Senior Executive Plan (which is discussed more fully above), and, in the case of Mr. Tan, credited to an account with a mutually acceptable brokerage firm.

The amounts of the Deferred Bonuses are as follows:

Named Executive Officer	Amount
Michael McNamara	$	5,000,000
Thomas J. Smach	$	3,000,000
Peter Tan	$	3,200,000

The Deferred Bonuses for Mr. McNamara and Mr. Smach will vest as follows: (i) 10% will vest on April 1, 2006; (ii) an additional 15% will vest on April 1, 2007; (iii) an additional 20% will vest on April 1, 2008; (iv) an additional 25% will vest on April 1, 2009; and (v) an additional 30% will vest on April 1, 2010. The Deferred Bonuses for Mr. McNamara and Mr. Smach will be 100% vested upon a change of control (as defined in the Senior Executive Plan) if they are employed at that time or if their employment is terminated as a result of death or disability.

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The Deferred Bonus for Mr. Tan will be paid as follows: (i) 0% will be paid if Mr. Tan’s employment is terminated for any reason (other than death or disability) before April 1, 2008; (ii) 50% will be paid if Mr. Tan’s employment is terminated (other than as a result of death or disability) on or after April 1, 2008; and (iii) 100% will be paid if Mr. Tan’s employment is terminated on or after April 1, 2009. 100% of the Deferred Bonus will be paid to Mr. Tan if his employment is terminated as a result of death or disability.

The foregoing description of the Award Agreements, is qualified in its entirety by reference to the complete terms and conditions of each of the Award Agreements for Mr. McNamara, Mr. Smach and Mr. Tan, which are filed as Exhibits 10.03, 10.04 and 10.05, respectively, to this Report on Form 8-K.

Ronny Nilsson Bonus

On July 7, 2005, the Compensation Committee approved the payment of a $500,000 cash bonus to Ronny Nilsson (the Company’s President, Flextronics Network Services), who is expected to be a “named executive officer” (as defined in Item 402(a)(2) of Regulation S-K) for purposes of the Company’s Proxy Statement for the 2005 Annual General Meeting of Shareholders, as part of the pending separation of his employment with the Company in connection with the pending merger of the Company’s Flextronics Network Services business with Telavie AS, a company wholly-owned by Altor, a private equity firm focusing on investments in the Nordic region.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

The following exhibits are filed with this Report on Form 8-K:

Exhibit
10.01	Employment Agreement, dated as of July 8, 2005, by and between Michael E. Marks and Flextronics International USA, Inc.
10.02	Flextronics International USA, Inc. 2005 Senior Executive Deferred Compensation Plan (together with the related form of Rabbi Trust Agreement and the Deferral Agreement Form for 2005).
10.03	Award Agreement for Michael McNamara.
10.04	Award Agreement for Thomas J. Smach.
10.05	Award Agreement for Peter Tan.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FLEXTRONICS INTERNATIONAL LTD.
Date: July 13, 2005	By:	/s/ Thomas J. Smach
	Name:	Thomas J. Smach
	Title:	Chief Financial Officer

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EX-10.01

EXHIBIT 10.01

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is entered into as of the 8th day of July (the “Effective Date”) by and between Michael E. Marks, an individual, (“Executive”) and Flextronics International USA, Inc. (“Flextronics” or the “Company”).

1. Executive’s Relationship with the Company.

a. Executive acknowledges that he has been and currently is employed by Flextronics and he currently serves as Chief Executive Officer (“CEO”) of Flextronics International Ltd., Flextronics’s parent (“FIL”). Executive agrees that he will continue to serve as CEO until January 31, 2006 or an earlier date mutually agreed upon by both parties, on which date Executive agrees that he shall relinquish his duties as CEO and shall serve exclusively in the capacity of Chairman of the Board of Directors (the “Board”). The actual date of Executive’s transition is referred to as the “Transition Date”.

b. Subject to his re-election at the 2006 Annual General Meeting of the shareholders and unless earlier terminated as set forth in this Agreement, Executive agrees to serve as Chairman from the Transition Date until at least until July 1, 2009 (“Transition Period”).

c. Executive and Flextronics agree that unless earlier terminated as set forth in this Agreement, Executive’s employment with Flextronics shall terminate on July 1, 2009. The actual date of the termination of Executive’s employment is referred to as the “Employment Termination Date”.

2. Cash Compensation.

a. Salary. Provided that the Executive does not revoke this Agreement pursuant to Section 6(b) of this Employment Agreement, Flextronics shall continue to pay Employee his salary at his rate of pay as of the Effective Date until July 1, 2007. From July 1, 2007 until the Employment Termination Date Flextronics shall pay Employee at the rate of Five Thousand Dollars ($5,000) per month. Flextronics shall make all payments under this Section 2(a) less payroll taxes and withholdings for Executive’s benefits as set forth in Section 3 below and otherwise as required by law.

b. Cash Bonuses. Beginning on the Transition Date, Executive will no longer be eligible for a cash bonus, including without limited pursuant to Flextronics’s executive bonus plan.

c. Director Cash Compensation. Executive agrees that he will not be entitled to any cash compensation paid to members of the Board for any periods prior to the Employment Termination Date.

3. Benefits.

a. Healthcare Benefits.

(i) Until the Employment Termination Date, Executive shall continue to be eligible for health insurance in accordance with the health insurance plan maintained by Flextronics for similarly situated employees. Flextronics and Executive shall continue to pay the previously agreed upon respective shares of the premiums for such health care coverage through deductions from Executive’s base salary paid pursuant to Section 2(a) above. Flextronics reserves the right to modify or to cancel such plans at any time for any reason.

(ii) Following the Employment Termination Date, Flextronics shall continue to provide medical and dental benefits equivalent to the benefits provided for Executive as of the Employment Termination Date for the remainder of Executive’s life, provided that if Executive is ineligible (e.g., by operation of law or the terms of the applicable plan) to continue to participate in any such plan, Flextronics will provide Executive with a comparable level of compensation or benefit; provided further, that the health and medical benefits provided in this paragraph shall be reduced to the extent, if any, that Executive receives comparable benefits from another employer.

b. Certain Life and Disability Insurance Plans. Beginning on the Transition Date, Employee shall not be eligible for life insurance, short-term disability buy up and/or long term disability benefits due to the nature of his employment during the Transition Period.

c. Individual Disability Insurance. Until the Employment Termination Date, Flextronics will continue to pay the premiums for the UnumProvident Individual Disability Policy. Following the Employment Termination Date, this plan will be canceled.

d. 401K Plan. Until the Employment Termination Date, Executive may continue to contribute to the 401(k) plan in accordance with Flextronics 401(k) Plan through withholding from Executive’s salary as provided in Section 2(a) above. Flextronics reserves the right to modify or to cancel such plan at any time for any reason.

e. Use of Corporate Jets. Beginning on the Employment Termination Date Executive will be entitled to use the Flextronics corporate jets for his personal use, subject to availability, by paying Flextronics the variable cost of the use of the jet as determined by Flextronics in its sole discretion.

4. Equity Compensation.

a. Executive’s Employee Options.

(i) Executive has been granted stock options pursuant to the Flextronics International Ltd. 1993 Share Option Plan; the Flextronics International Ltd. 1998 Interim Option Plan; the Flextronics International Ltd. 2001 Equity Incentive Plan; and the Flextronics International Ltd. 2002 Interim Incentive Plan (collectively, the “Share Option and Incentive

Plans”) as provided in the applicable option grant forms issued to Executive pursuant to each of the Share Option and Incentive Plans. The Share Option and Incentive Plans are incorporated herein by reference.

(ii) Executive’s options are listed on Exhibit A, which is attached hereto and incorporated herein by reference (the “Employee Options”). Executive acknowledges that he is not entitled to any additional grants of stock options in his capacity as an employee of Flextronics.

(iii) Executive acknowledges and agrees that all of his Employee Options shall continue to vest in accordance with their terms until the Employment Termination Date In addition, in the event that the Employment Termination Date occurs prior to July 1, 2009 for the reasons set forth in Section 5(a)(iii) below, then the vesting of all Employee Options shall automatically be deemed to be accelerated as of such Employment Termination Date so that all of Executives Employee Options will be fully vested.

b. Director Equity Compensation. Executive agrees that he will not be entitled to any equity compensation paid to members of the Board for any periods prior to the Employment Termination Date.

5. Termination of Employment

a. Conflict of Interest Activity: Flextronics Competitor or Customer.

(i) Conflict of Interest Activities. “Conflict of Interest Activity” shall mean being employed by, or providing services to, or serving as a consultant, agent, independent contractor, partner, officer or director of, or owning any equity interests in, or participate in the ownership, management, operation or control of, or be connected in any similar manner with, any company or business that (either directly or through a subsidiary) is engaged in any activity that is substantially similar to or competitive with any business activity conducted or under development by Flextronics, FIL, or any of its or their affiliates (collectively referred to as the “Flextronics Group” and each competitor of the Flextronics Group is referred to as a “Flextronics Competitor”) or any customer of the Flextronics Group (each a “Flextronics Customer Competitor”); provided, however that Executive may own less than one percent (1%) of the outstanding capital stock of any publicly-traded company and may serve as an employee of any company in the Flextronics Group. The geographic scope of a Conflict of Interest Activity includes all countries in which the Flextronics Group has engaged in manufacturing, marketing or sales or otherwise conducted business or selling or marketing efforts at any time during the Transition Period and ending at such time as Executive is no longer an employee of Flextronics. Executive acknowledges that the scope and period of restrictions and the geographical area to which the restriction imposed in this subparagraph shall apply are fair and reasonable and are reasonably required for the protection of Flextronics and that this Section 5(a)(i) accurately describes the business to which the restrictions are intended to apply.

(ii) Flextronics Competitor. In the event that Executive wishes to resign in order to engage in a Conflict of Interest Activity with a Flextronics Competitor at any time during the

Transition Period, Executive agrees to provide written notice of his intent to the Board along with a resignation of his position as Chairman and his agreement to refrain from engaging in such Conflict of Interest Activity for a period of six (6) months from the date of the notice. The notice will describe the proposed activity and identify the Flextronics Competitor. In such event, the Employment Termination Date will be the date of Executive’s notice.

(iii) Flextronics Customer Competitor. In the event that Executive wishes to engage in a Conflict of Interest Activity with a Flextronics Customer Competitor at any time during the Transition Period, Executive agrees to provide written notice of his intent to the Board. The notice will describe the proposed activity and identify the Flextronics Customer Competitor. If the Board determines that the proposed activity is a Conflict of Interest Activity with a Flextronics Customer, then the Board may in its sole discretion request that Executive resign his position as Chairman. If the Board requests Executive’s resignation of his Chairman position, then the Employment Termination Date will be the date of the Board’s request.

b. Termination of Employment for Good Cause. Flextronics may terminate Executive’s employment for Good Cause effective immediately and upon written notice to Executive, without prejudice to any other remedy to which Flextronics may be entitled at law, in equity or otherwise under this Agreement. For the purpose of this Agreement, “Good Cause” shall mean (i) a breach by Executive of this Agreement, including without limitation, a failure to provide written notice of his intent to engage in a Conflict of Interest Activity as defined in Section 5(a), a failure to refrain from engaging in a Conflict of Interest Activity, or a breach of paragraphs 10, 11, 12 or 13 of this Agreement and/or any existing Confidential Information and Inventions Agreement between Flextronics and Executive. In the event that Flextronics terminates Executive’s employment for Good Cause prior to the expiration of the Transition Period, then on the effective date of such termination, Flextronics shall no longer be required to pay Executive the cash compensation or provide the benefits set forth in Sections 2 or 3 above.

6. Releases.

a. General Release by Executive of Employment-Related Matters. In consideration for the covenants and release set forth in this Agreement, Executive on his own behalf and on the behalf his heirs, executors, administrators, successors, attorneys, insurers, and assigns shall release and discharge the Flextronics Group and any predecessor divisions or entities, their respective past and present officers, directors, shareholders, partners, attorneys, agents, employees, and their respective insurance companies, successors and assigns (hereinafter “Flextronics Releasees”), from any and all claims, of any and every kind, nature and character, known and unknown, suspected and unsuspected, including any and all claims for attorneys’ fees and costs which Executive either may now have, or has ever had, against the Flextronics Releasees, which arise in whole or in part from Executive’s employment relationship with Flextronics, the termination of that relationship, any other employment-related dealings of any kind between Executive and the Flextronics Group and/or any past or present officer, director, agent or employees of the Flextronics Group and/or with respect to any other obligation (contractual or otherwise) event, matter, claim, damages or injury arising prior to the execution of this Agreement by all parties.

This release covers, but is not limited to: any and all claims, rights, demands, and causes of action for wrongful termination, intentional or negligent infliction of emotional distress, defamation, breach of any employment contract or employment agreement, breach of the covenant of good faith and fair dealing, claim for reinstatement or rehire, failure to pay wages, commissions, benefits, PTO, severance or other compensation of any sort, discrimination, right to paid or unpaid leave, and/or violation of any and all statutes, rules, regulations or ordinances whether state, federal or local, including without limitation: Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, as amended, the Fair Employment and Housing Act, as amended, and the Age Discrimination in Employment Act, as amended by the Older Workers’ Benefits Protection Act. Nothing in this release shall affect Executive’s right, if any, to obtain unemployment benefits or any obligation set forth in this Agreement. This release does not extend to any of the obligations of Flextronics arising out of this Agreement

b. ADEA Waiver and Release. Executive hereby acknowledges that he is waiving and releasing any rights he might have under the Age Discrimination in Employment Act of 1967 (“ADEA”), as amended, and that this waiver and release is knowing and voluntary. The parties agree that this waiver and release does not apply to any rights or claims that may arise under ADEA after the parties have executed this Agreement and the revocation period has expired. Executive acknowledges that a portion of the consideration given for this waiver is in addition to anything of value to which he was already entitled for salary and PTO up to the Transition Date. Executive further acknowledges by this writing that he has been advised that (a) he should consult with an attorney prior to executing this Agreement; (b) he has twenty-one (21) calendar days from the date of his receipt within which to consider this Agreement; (c) he has seven (7) calendar days following the execution of this Agreement by the parties to revoke the Agreement; and (d) this Agreement shall not be effective until the revocation period has expired. Executive acknowledges that he received this Agreement on July 8, 2005. Executive understands that, in the event, he does not execute this Agreement or revokes this Agreement in accordance with this paragraph, he will not be entitled to the salary continuation through the Transition Period and any other benefits or payments provided for in this Agreement.

c. No Legal Action. Executive represents that he has not filed a legal action with any local, state or federal agency or court relating in any manner to any claim released herein, and that if any such governmental agency or court assumes jurisdiction of any complaint or charge against Flextronics Releasees on behalf of Executive, relative to any claim released herein, he will request such agency or court to withdraw from the matter.

d. Section 1542 Waiver. Executive acknowledges that he understands the statutory language of Section 1542 of the Civil Code of the State of California and, having been so apprised, agrees nevertheless to waive any and all rights or benefits which he may now have, or in the future may have, under the terms of Section 1542 of the California Civil Code or any similar provision of any state or federal law. California Civil Code section 1542 provides as follows:

A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.

7. Confidentiality.

a. Restrictions on Use and Disclosure of Confidential Information. Executive acknowledges and agrees that he will remain bound by the terms and obligations set forth in the Disclosure and Secrecy Agreement between Flextronics and Executive dated February 11, 1994 and attached hereto as Exhibit B (the “Confidentiality Agreement”). Executive further acknowledges that the confidentiality, non-solicitation and non-compete clauses in this Agreement and the Confidentiality Agreement with Flextronics are intended to be read together. Should the terms of the Confidentiality Agreement differ from the terms of this Agreement, the provisions of this Agreement shall prevail.

Executive agrees that any original works of authorship, products, software, and/or applications that Executive created or developed for Flextronics while in the employ of Flextronics is the sole property of Flextronics. Executive further acknowledges and agrees that Executive shall not, without the prior written consent of the Board, disclose or use for any purpose (except in furtherance of the business of the Flextronics Group) any Confidential Information (as herein defined and as defined in the Confidentiality Agreement) of the Flextronics Group.

b. Scope of Confidential Information. Confidential Information shall mean any and all proprietary or confidential information of the Flextronics Group or any of its vendors or customers, whether or not developed by Executive, including without limitation the following:

(i) Any and all technical information, including, without limitation, product data and specifications, know-how, formulae, source code, or other software information, test results, processes, inventions, research projects or product development.

(ii) Any and all business information, including, without limitation, cost information, profits, profit margins, sales information, costs, overhead, accounting and unpublished financial information, business plans, markets, marketing methods, vendor or customer lists, including without limitation, and a vendor’s or customer’s specific needs, advertising and operating strategies.

(iii) Any and all employee information, including, without limitation, salaries, and specific strengths, weaknesses and skills of employees of the Flextronics Group.

c. Customer Non-Solicitation. Executive understands and agrees that the relationship between the Flextronics Group and each of its customers and vendors constitutes a valuable asset of the Flextronics Group, that information related to customers is kept confidential and may not be disclosed or converted for the use of Executive or any third party for any reason whatsoever. Accordingly, Executive shall not, directly or indirectly, for a period of one year after his date of termination, on behalf of Executive or any third party, solicit any customer or vendor to conduct any business with such customer that is the same as or similar to, or is otherwise competitive with, the business of the Flextronics Group or to terminate such vendor’s or customer’s business relationship with the Flextronics Group.

d. Employee Non-Solicitation. Executive understands and agrees that the relationship between the Flextronics Group and each of its employees constitutes a valuable asset of the Flextronics Group, that information related to employee’s skills and compensation is kept confidential, and may not be disclosed or converted for the use of Executive or any third party for any reason whatsoever. Accordingly, Executive shall not, directly or indirectly, for a period of one year after his date of termination, on behalf of Executive or any third party, solicit any employee to terminate his or her employment relationship with the Flextronics Group.

8. Miscellaneous

a. Representation by Counsel. The parties represent that they have had an opportunity to be represented by counsel of their own choosing in the execution of this Agreement and that this Agreement has been carefully and fully read and is voluntarily executed.

b. Severability. It is the desire and intent of the parties that the provisions of this Agreement shall be enforced to the fullest extent permissible under applicable law. If any particular provision or portion of this Agreement shall be adjudicated to be invalid or unenforceable, this Agreement shall be deemed amended to revise those provisions or portions to the minimum extent necessary to render them enforceable.

c. Governing Law; Waiver of Jury Trial. This Agreement shall in all respects be interpreted, enforced, and governed under the laws of the State of California.

IN THE EVENT OF ANY DISPUTE BETWEEN THE PARTIES, WHETHER IT RESULTS IN PROCEEDINGS IN ANY COURT IN ANY JURISDICTION OR IN ARBITRATION, THE PARTIES HEREBY KNOWINGLY AND VOLUNTARILY, AND HAVING HAD AN OPPORTUNITY TO CONSULT WITH COUNSEL, WAIVE ALL RIGHTS TO TRIAL BY JURY, AND AGREE THAT ANY AND ALL MATTERS SHALL BE DECIDED BY A JUDGE OR ARBITRATOR WITHOUT A JURY TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW.

d. Entire Agreement. This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements or understandings between the parties pertaining to any subject matter contained in this Agreement, except that the Confidentiality Agreement and Share Option and Incentive Plans as defined in Section 4 of this Agreement shall remain in full force and effect. Any amendments or modifications to this Agreement must be made in writing and signed by both parties.

e. Notices. All notices required or permitted under this Agreement will be in writing and will be deemed received (a) when delivered personally; (b) when sent by confirmed facsimile; (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (d) one (1) day after deposit with a commercial overnight carrier. All communications will be sent to the addresses set forth above or to such other address as may be designated by a party by giving written notice to the other party pursuant to this subsection.

f. Counterparts. This Agreement may be signed in counterparts. A copy of a signature shall have the full force and effect as an original signature.

IN WITNESS WHEREOF, this Agreement is executed as of the Effective Date.

/s/ Michael E. Marks
MICHAEL E. MARKS
FLEXTRONICS INTERNATIONAL USA, INC.
By:	/s/ Thomas J. Smach
	THOMAS J. SMACH,
	CHIEF FINANCIAL OFFICER

EX-10.02

EXHIBIT 10.02

FLEXTRONICS INTERNATIONAL USA, INC. 2005 SENIOR

EXECUTIVE DEFERRED COMPENSATION PLAN

1. Purpose.

The purpose of this Plan is to provide the terms of an unfunded deferred compensation plan for a select group of executive management and highly compensated employees of Flextronics International USA, Inc. (the “Company”) who may agree, pursuant to the Deferral Agreements, to defer certain compensation otherwise due to them. It is intended that the Plan constitute an unfunded “top hat plan” for purposes of the Employee Retirement Income Security Act of 1974, as amended. This Plan shall be construed and administered in accordance with Section 409A of the Internal Revenue Code of 1986, as amended.

2. Definitions.

The following terms used in the Plan shall have the meanings set forth below:

(a) “Affiliate” means, with respect to the Company, any entity directly or indirectly controlling, controlled by, or under common control with the Company or any other entity designated by the Board in which the Company or an Affiliate has an interest.

(b) “Beneficiary” shall mean any person, persons, trust or other entity designated by a Participant to receive benefits, if any, under the Plan upon such Participant’s death. No designation or change in designation of a Beneficiary shall be effective until received and acknowledged in writing by the Committee or Plan Administrator.

(c) “Board” shall mean the Board of Directors of Flextronics International Ltd.

(d) “Change of Control” shall mean (i) a merger or consolidation of Flextronics International Ltd. in which its voting securities immediately prior to the merger or consolidation do not represent, or are not converted into securities that represent, a majority of the voting power of all voting securities of the surviving entity immediately after the merger or consolidation; (ii) the sale, lease, conveyance or other disposition of all or substantially all of the Flextronics International Ltd.’s assets as an entirety or substantially as an entirety to any person, entity or group acting in concert; (iii) any transaction or series of transactions (as a result of a tender offer, merger, consolidation or otherwise) that results in, or that is in connection with, any person, entity or group acting in concert becoming the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) directly or indirectly, of more than 50% of the aggregate voting power of all classes of shares of Flextronics International Ltd.; or (iv) a liquidation and winding up of the business of Flextronics International Ltd.

(e) “Claimant” shall have the meaning set forth in Section 9(a).

(f) “Code” shall mean the Internal Revenue Code of 1986, as amended, and Treasury Regulations issued thereunder.

(g) “Committee” shall mean the Compensation Committee appointed by the Board.

(h) “Company” shall mean Flextronics International USA, Inc., and its successors.

(i) “Deferral Account” shall mean the recordkeeping account established and maintained by the Company in the name of a Participant as provided in Section 4(b) for compensation payable to a Participant pursuant to a Deferral Agreement.

(j) “Deferral Agreement” shall mean an agreement executed by the Participant and the Company, in such form as approved by the Committee or the Plan Administrator, and as may be revised from time to time with respect to any one or more Participants by or at the direction of the Committee or Plan Administrator, whereby (A) the Participant (i) agrees to receive certain types of compensation in the future pursuant to the provisions of this Plan, (ii) elects to defer future compensation such Participant would otherwise be entitled to receive in cash from the Company, including an amount or percentage of compensation to be deferred, and/or (iii) makes such other elections as are permitted and provides such other information as is required under the Plan, and (B) the Participant specifies a schedule according to which the Participant will receive payout of his or her compensation that is payable in the future under this Plan. Each Deferral Agreement shall be consistent with this Plan and shall incorporate by its terms the provisions of this Plan.

(k) “Deferral Day” shall mean, for each Participant, the day on which the Company is required, by the terms of the applicable Deferral Agreement form or any other agreement between the Participant and the Company, to credit an amount to the Participant’s Deferral Account under this Plan.

(l) “Disability” shall mean that a Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Participant’s employer. This definition shall be construed and administered in accordance with the requirements of Code Section 409A(a)(2)(C).

(m) “Fair Market Value” shall mean, on a given date of valuation, (i) with respect to any mutual fund, the closing net asset value as reported in The Wall Street Journal with respect to the date of valuation and (ii) with respect to a security traded on a national securities exchange or the NASDAQ National Market, the closing price on the date of valuation as reported in The Wall Street Journal.

(n) “Hypothetical Investments” shall have the meaning set forth in Section 4(d).

(o) “Manager” shall have the meaning set forth in Section 4(d).

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(p) “Officers” shall have the meaning set forth in Section 8(b)(ii).

(q) “Participant” shall mean a present or former employee or director of the Company who participates in this Plan and any other present or former employee or director designated from time to time by the Committee.

(r) “Plan” shall mean this Flextronics International USA, Inc., 2005 Senior Executive Deferred Compensation Plan.

(s) “Plan Administrator” shall mean the Plan Administrator, if any, appointed pursuant to Section 3(a).

(t) “Released Party” shall have the meaning set forth in Section 8(b)(iii).

(u) “Separation from Service” shall mean, with respect to a Participant, the cessation of an Employee’s employment with the Employer, other than by death of Disability. This definition shall be construed and administered in accordance with the requirements of Code Section 409A(a)(2)(B)(i).

(v) “Specified Employee” shall mean a key employee (as defined in Code Section 416(i) without regard to paragraph 5 thereof) of Flextronics International Ltd., for so long as any of its stock is publicly traded on an established securities market or otherwise. This definition shall be construed and administered in accordance with the requirements of Code Section 409A(a)(2)(B)(i).

(w) “Trust” shall mean any trust or trusts established or designated by the Company pursuant to Section 5(a) to hold assets in connection with the Plan.

(x) “Trustee” shall have the meaning set forth in Section 5(a).

(y) “Unforeseeable Emergency” shall mean a severe financial hardship to a Participant resulting from an illness or accident of the Participant, the Participant’s Spouse, or a dependent (as defined in Section 152(a) of the Code) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. This definition shall be construed and administered in accordance with the requirements of Code Section 409A(a)(2)(B)(ii).

3. Authority and Administration of the Committee and Plan Administrator.

(a) Authorization of Committee or Plan Administrator. The Committee shall administer the Plan and may select one or more persons to serve as the Plan Administrator. The Plan Administrator shall have authority to perform any act that the Committee is entitled to perform under this Plan, except to the extent that the Committee specifies limitations on the Plan Administrator’s authority. The initial Plan Administrator shall be the Company’s Chief Financial Officer. Any person selected to serve as the Plan Administrator may, but need not, be a Committee member or an officer or employee of the Company. However, if a person serving as Plan Administrator or a member of the Committee is a Participant, such person may not decide or vote on a matter affecting his interest as a Participant.

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(b) Administration by Committee or Plan Administrator. The Committee or Plan Administrator shall administer the Plan in accordance with its terms, and shall have all powers necessary to accomplish such purpose, including the power and authority to reasonably construe and interpret the Plan, to reasonably define the terms used herein, to reasonably prescribe, amend and rescind rules and regulations, agreements, forms, and notices relating to the administration of the Plan, and to make all other determinations reasonably necessary or advisable for the administration of the Plan. The Committee or Plan Administrator may appoint additional agents and delegate thereto powers and duties under the Plan.

4. Deferral Agreements and Deferral Accounts.

(a) Deferral Agreement. The Company and any Participant may agree to defer all or a portion of his or her compensation, under the terms provided in any Deferral Agreement form provided to the Participant in accordance with the Plan, by executing a completed Deferral Agreement. An election to defer compensation for a taxable year pursuant to a Deferral Agreement must be made not later than the close of the preceding taxable year, or at such other time provided in Treasury Regulations issued under Code Section 409A (or earlier date specified in the applicable Deferral Agreement form); provided that, in the case of the first year in which a Participant becomes eligible to participate in the Plan within the meaning of Code Section 409A and applicable administrative guidance, such election may be made with respect to services to be performed subsequent to the election within 30 days after the date the Participant becomes eligible to participate in the Plan (or earlier date specified in the applicable Deferral Agreement form); and, in the case of any performance-based compensation based on services performed over a period of at least 12 months, such election may be made no later than 6 months before the end of the period (or earlier date specified in the applicable Deferral Agreement form). The Deferral Agreement form shall establish for each Participant the amount and type of compensation (including bonuses and/or salary) that may or shall be deferred pursuant to the Plan and such determination will be reflected on the relevant Deferral Agreement form, and may establish maximum or minimum amounts of aggregate deferrals that may be elected for a Participant. A Participant shall not be entitled to vary any term that is set forth in the Deferral Agreement form except to the extent that the form of Deferral Agreement itself permits variations.

(b) Establishment of Deferral Accounts. The Committee or Plan Administrator shall establish a Deferral Account for each Participant. Each Deferral Account shall be maintained for the Participant solely as a bookkeeping entry by the Company to evidence unfunded obligations of the Company. The Participant shall be 100% vested in the Participant’s Deferral Account at all times, except to the extent otherwise specified in the applicable Deferral Agreement or in any other agreement between the Company and the Participant. The provisions with respect to vesting in any such Deferral Agreement or other agreement shall be incorporated in this Plan and given effect as if fully set forth herein. A Participant’s Deferral Account shall be credited with the amounts required to be credited to the Participant’s Deferral Account pursuant to the Participant’s initial Deferral Agreement or pursuant to any subsequent Deferral Agreement entered into by that Participant and the Company, in each case, less the amount of federal, state or local tax required by law to be withheld with respect to such amounts, unless such withholding is provided from another source, and shall be adjusted for Hypothetical Investment results as described herein.

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(c) Hypothetical Investments and Managers. Subject to the provisions of Section 4(g), amounts credited to a Deferral Account shall be deemed to be invested in one or more hypothetical investments (“Hypothetical Investments”). Each Participant shall select an investment manager (a “Manager”) from a list established by the Committee or Plan Administrator, and the Manager will then select Hypothetical Investments on the Participant’s behalf. A Participant may select a successor Manager from such list of Managers from time to time. For the unvested portion of a Participant’s Deferral Account, a Manager may select Hypothetical Investments from a list of investments selected from time to time by the Committee or Plan Administrator (the “Unvested Account List”), and subject to any limitation on permissible allocations among groups of Hypothetical Investments that the Committee or Plan Administrator may establish. For the vested portion of a Participant’s Deferral Account (which shall be accounted for in a separate vested subaccount pursuant to Section 4(j)), a Manager may select Hypothetical Investments from a list of publicly available mutual funds, publicly traded stock and bonds selected from time to time by the Committee or Plan Administrator (the “Vested Account List”). The Committee or Plan Administrator shall consider requests from any Participant to add to the list of Managers and/or to the Vested Account List, and shall satisfy such requests if they are reasonably acceptable to the Committee or Plan Administrator. The Committee or Plan Administrator may change or discontinue any Hypothetical Investment or Manager if reasonably necessary to satisfy business objectives of the Company or its Affiliates; provided that, following a Change of Control, neither the Committee nor the Plan Administrator may change or modify the investment options existing immediately prior to such Change of Control in any manner that is adverse to the Participants. No Hypothetical Investments may be made in any debt or equity issued by Flextronics International Ltd. or its Affiliates.

(d) List of Hypothetical Investments and Managers. An initial list of Managers, an initial Unvested Account List, and an initial Vested Account List shall be established by the Board, the Committee or the Plan Administrator and each such list shall be provided to each Participant in connection with the initial Deferral Agreement.

(e) Investment of Deferral Accounts. As provided in Sections 4(d) and 5(b), each Deferral Account shall be deemed to be invested in one or more Hypothetical Investments as of the date of the deferral or credit, as the case may be. The amounts of hypothetical income, appreciation and depreciation in value of the Hypothetical Investments shall be credited and debited to, or otherwise reflected in, such Deferral Account from time to time in accordance with procedures established by the Committee or Plan Administrator. Unless otherwise determined by the Committee or Plan Administrator, amounts credited to a Deferral Account shall be deemed invested in Hypothetical Investments as of the date so credited.

(f) Allocation and Reallocation of Hypothetical Investments. A Manager may allocate and reallocate amounts credited to a Participant’s Deferral Account to one or more of the Hypothetical Investments authorized under the Plan with such frequency as determined by the Committee or the Plan Administrator. Subject to the rules established by the Committee or Plan Administrator, a Manager may reallocate amounts credited to a Participant’s Deferral Account to other Hypothetical Investments by filing with the Committee or Plan Administrator a notice, in such form as may be specified by the Committee or Plan Administrator. No Participant shall have the right, at any time, to direct a Manager to enter into specific transactions in connection with his or her Deferral Account; provided that this provision shall not prohibit the

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Participant from communicating with the Manager regarding Hypothetical Investments, including communication regarding preferred Hypothetical Investment objectives. Each Manager shall have the power to acquire and dispose of such Hypothetical Investments as the Manager determines necessary in connection with its portfolio. The Committee or Plan Administrator may restrict or prohibit reallocation of amounts deemed invested in specified Hypothetical Investments or invested by specified Managers to comply with applicable law or regulation.

(g) No Actual Investment. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Hypothetical Investments are to be used for measurement purposes only. A Participant’s election of any such Hypothetical Investments, the allocation of such Hypothetical Investments to his or her Deferral Account, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant’s Deferral Account shall not be considered or construed in any manner as an actual investment of his or her Deferral Account in any such Hypothetical Investments. In the event that the Company or the Trustee, in its own discretion, decides to invest funds in any or all of the Hypothetical Investments, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant’s Deferral Account shall at all times be a bookkeeping entry only and shall not represent any investment made on his or her behalf by the Company or the Trust. The Participant shall at all times remain an unsecured creditor of the Company.

(h) Forfeiture of Unvested Portions of Deferral Accounts Upon Termination of Employment. Upon the termination of a Participant’s employment with the Company, any unvested portion of the Participant’s Deferral Account (excluding the portion, if any, that vests as a result of such termination) shall be forfeited and terminated in accordance with the applicable Deferral Agreement, except as otherwise determined by the Committee in its sole and absolute discretion.

(i) Change in Law. If a future change in law would, in the judgment of the Committee or Plan Administrator, likely accelerate taxation to a Participant of amounts that would be credited to the Participant’s Deferral Account in the future under the Participant’s Deferral Agreement, the Company and the Participant will attempt to amend the Plan to satisfy the requirements of the change in law and, unless and until such an amendment is agreed to, Company shall cease deferrals under this Deferral Agreement on the effective date of such change in law.

(j) Separate Maintenance of Vested Subaccounts. A separate vested subaccount shall be established and maintained for each Participant who either (a) elects to defer amounts of salary and/or cash bonus payments pursuant to a Deferral Agreement, or (b) becomes vested in a portion of the unvested balance of the Participant’s Deferral Account (the “Unvested Balance”). A Participant’s vested subaccount shall constitute part of the Participant’s Deferral Account. Whenever a portion of a Participant’s Unvested Balance becomes vested, the portion that becomes vested shall be transferred to the Participant’s separate vested subaccount as specified in the Deferral Agreement or other agreement entered into between the Participant and the Company. If a Participant elects to defer amounts of salary and cash bonus pursuant to a Deferral Agreement, the deferral salary and cash bonus shall be accounted for in the Participant’s separate vested subaccount. The amounts of hypothetical income, appreciation and depreciation

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in value of the Hypothetical Investments of amounts in a vested subaccount shall be credited and debited to, or otherwise reflected in, such vested subaccount from time to time in accordance with procedures established by the Committee or Plan Administrator. Unless otherwise determined by the Committee or Plan Administrator, amounts credited to a vested subaccount shall be deemed invested in Hypothetical Investments as of the date so credited.

5. Establishment of Trust.

(a) The Trust Agreement. The Company shall enter into a Trust Agreement, in substantially the form attached hereto as Exhibit A, providing for the establishment of a trust to be held and administered by a trustee (the “Trustee”) designated in the Trust Agreement (the “Trust”). The Trustee shall be the agent for purposes of such duties delegated to the Trustee by the Committee or Plan Administrator as set forth in the Trust Agreement. The Trust shall be irrevocable.

(b) Funding the Trust. On the relevant Deferral Day, the Company shall deposit into the Trust cash or other assets, as specified in the applicable Deferral Agreement, equal to the aggregate amount required to be credited to the Participant’s Deferral Account for that Deferral Day, less applicable taxes required to be withheld, if any. The assets of the Trust shall remain subject to the claims of the general creditors of the Company in the event of an insolvency of the Company. Assets of the Trust shall at all times be located within the United States.

(c) Taxes and Expenses of the Trust. The Committee and the Plan Administrator shall make all investment decisions for the Trust, and no Participant shall be entitled to direct any investments of the Trust. All taxes on any gains and losses from the investment of the assets of the Trust shall be recognized by the Company and the taxes thereon shall be paid by the Company and shall not be recovered from the Deferral Accounts or the Trust. The third-party administrative expenses of the Plan and the Trust, including expenses charged by the Trustee to establish the Trust and the Trustee’s annual fee per Deferral Account, shall be paid by the Company, and shall neither be payable by Trustee from the Trust nor reduce any Deferral Accounts; provided that any Managers’ fees or other expenses incurred with respect to particular Hypothetical Investment or any asset of the Trust which corresponds to a particular Hypothetical Investment shall be charged to the Deferral Account that is deemed invested in such Hypothetical Investment. No part of the Company’s internal expenses to administer the Plan, including overhead expenses, shall be charged to the Trust or the Deferral Accounts.

6. Settlement of Deferral Accounts.

The Company shall pay or direct the Trustee to pay the net amount credited to a Deferral Account as elected by the Participant in the Participant’s Deferral Agreement in accordance with the provisions of this Plan. A Participant shall be required to select one of the payout alternatives set forth in the form of Deferral Agreement provided to the Participant by the Plan Administrator. Except for payouts due to the death, Disability, Unforeseeable Emergency or Separation from Service of the Participant, no payout of amounts credited to a Participant’s Deferral Account shall occur prior to the first anniversary of the Deferral Agreement. The Committee or Plan administer may, in its sole discretion, allow a Participant may redefer the

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payout of his Deferral Account one or more times; provided, that (i) such redeferral may not take effect until at least 12 months after the date on which such election is made; (ii) in the case of an election related to any payment other than a payment that would be made upon the Participant’s death, Disability, or the occurrence of an Unforeseeable Emergency, the first payment with respect to which such election is made must be deferred for a period of not less than 5 years from the date such payment would otherwise have been made; and (iii) any election that would affect a scheduled payout may be made not less than 12 months prior to the date of the first scheduled payout date. The preceding restrictions on redeferrals shall be construed and administered in accordance with the requirements of Code Section 409A(a)(4)(C). No Participant shall be entitled to accelerate the time or schedule of any payment under the Plan, except as may be permitted by Treasury Regulations promulgated under Code Section 409A.

(a) Payment in Cash or Securities. The Company shall settle a Participant’s Deferral Account, and discharge all of its obligations to pay deferred compensation under the Plan with respect to such Deferral Account, by payment of cash in an amount equal to or, at the option of the Committee or Plan Administrator, in marketable securities selected by the Committee or Plan Administrator with a Fair Market Value equal to the net amount credited to the applicable Deferral Account. Any such distributions to a Participant shall reduce the Company’s obligations under the Plan to such Participant. The Company’s obligation under the Plan may be satisfied by distributions from the Trust.

(b) Timing of Payments.

(i) Payments in settlement of a Participant’s Deferral Account may be distributed no earlier than the Participant’s Separation from Service, Disability, death, a specified time (or pursuant to a fixed schedule) specified in the applicable Deferral Agreement, or the occurrence of an Unforeseeable Emergency. In the case of a Participant who is a Specified Employee, a payment on account of Separation from Service may not be made before the date which is 6 months after the date of Separation from Service (or, if earlier, the date of the Participant’s death).

(ii) Payments in settlement of a Deferral Account shall be made as soon as practicable after the date or dates (including upon the occurrence of specified events), and in such number of installments, as directed by the Participant in the Participant’s Deferral Agreement, unless otherwise provided in this Section 6. All amounts needed for a payment shall be deemed withdrawn from the Hypothetical Investments as close in time as is practicable to the requested payment date. If a Participant has elected to receive installment payments, the amount of the distribution payable is based upon the value of the Deferral Account at the time of the installment payment date and shall act to reduce Hypothetical Investments in the following order: (A) cash and money market accounts, and (B) each other Hypothetical Investment on a pro rata basis, based on the value of the Participant’s Deferral Account. If a Participant has elected to receive partial payments of the amount in his or her Deferral Account, unpaid balances shall continue to be deemed to be invested in the Hypothetical Investments that such Participant has designated pursuant to Section 4(d) or 4(f).

(iii) In the event of a Participant’s death prior to the payment of all net amounts credited to his or her Deferral Account, such amounts shall be paid to the Participant’s

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designated Beneficiary in a single lump sum as soon as practicable after the Participant’s death. If a Participant fails to designate a Beneficiary or if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant’s benefits, the Participant’s designated Beneficiary shall be the executor or personal representative of the Participant’s estate, if a probate proceeding is open at the time for the distribution(s), and otherwise shall be the person(s) who would be entitled to the distribution(s) under the Participant’s last will and /or revocable trust (if such will distributes the residuary estate to such trust) and otherwise to the person(s) who would inherit the Participant’s property under the law of the Participant’s last domicile. If the Committee or Plan Administrator has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Committee or Plan Administrator shall have the right, exercisable in its discretion, to withhold such payments until this matter is resolved to the Committee’s or Plan Administrator’s satisfaction. The payment of benefits under the Plan to a Beneficiary shall fully and completely discharge the Company from all further obligations under this Plan with respect to the Participant, and such Participant’s interest in the Plan shall terminate upon such full payment of benefits.

(iv) Irrespective of any elections made by a Participant, the Committee or Plan Administrator may provide that the net vested amount credited to a Participant’s Deferral Account may be paid out in a single lump sum to the Participant in the event of the Participant’s Disability.

(c) Unforeseeable Emergency. Other provisions of the Plan notwithstanding, if the Committee or Plan Administrator determines that the Participant has an Unforeseeable Emergency, the Committee or Plan Administrator may direct the immediate lump sum payment to the Participant of vested amounts that the Committee or Plan Administrator determines to be necessary to satisfy such Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship). The preceding sentence shall be construed and administered in accordance with the requirements of Code Section 409A(a)(2)(B)(ii). If a Participant has suffered an Unforeseeable Emergency, the Plan Administrator may, in its sole discretion, authorize the cessation of deferrals by such Participant under the Plan.

(d) Effect on Deferral Account. A Participant’s Deferral Account shall be debited to the extent of any distributions to the Participant pursuant to this Section 6.

7. Amendment/Termination.

(a) The Committee, Plan Administrator or the Board may, with prospective or retroactive effect, amend, alter, suspend, discontinue, or terminate the Plan (i) if there is a change in law or regulatory authority that reasonably would be expected to result in an increase in the cost to the Company of at least $200,000 to maintain the Plan (other than an increase resulting from taxes on any gains from investment of the assets of the Trust), (ii) if the Internal Revenue Service determines that any amounts deferred under the Plan are includible in the Participant’s gross income prior to being paid out to the Participant, (iii) any time during the calendar year

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2005 if determined to be necessary, appropriate or advisable in response to administrative guidance issued under Code Section 409A or to comply with the provisions of Code Section 409A, or (iv) if no Participant is materially adversely affected by such action with respect to amounts required to be credited to the Participant’s Deferral Account under any previously executed Deferral Agreement; provided that, the Company may accelerate distributions under this Plan only where doing so is consistent with Treasury Regulations and other guidance issued by the Internal Revenue Service under Code Section 409A; provided further that, upon an event described in clause (i) or (ii) the Company may not, aside from any acceleration of benefits, alter any Participant’s rights under this Plan; and provided further that, following a Change of Control, the Plan will not be subject to amendment, alteration, suspension, discontinuation or termination without the prior written consent of each Participant who would be materially adversely affected by such action.

(b) Notwithstanding any other provision to the contrary and except as may otherwise be provided by the Committee or Plan Administrator, the Plan shall terminate as soon as possible following the payment of all amounts in respect of all Deferral Accounts.

8. General Provisions.

(a) Limits on Transfer of Awards. Other than by will, the laws of descent and distribution, or by appointing a Beneficiary, no right, title or interest of any kind in the Plan shall be transferable or assignable by a Participant (or the Participant’s Beneficiary) or be subject to alienation, anticipation, encumbrance, garnishment, attachment, levy, execution or other legal or equitable process, nor subject to the debts, contracts, liabilities or engagements, or torts of any Participant or the Participant’s Beneficiary. Any attempt to alienate, sell, transfer, assign, pledge, garnish, attach or take any other action subject to legal or equitable process or encumber or dispose of any interest in the Plan shall be void.

(b) Waiver, Receipt and Release.

(i) As between the Participant and the Company, a Participant and the Participant’s Beneficiary shall assume all risk (other than gross negligence of the Company or the Committee or Plan Administrator, or breach by the Company of the terms of this Plan) in connection with the Plan, Trust design, implementation or administration, Hypothetical Investment decisions made by the Participant and the resulting value of the Participant’s Deferral Account, the selection and actions of the Trustee or any other third party providing services to the Company or the Trust in connection with the Plan or Trust (including their administrative and investment expenses), including any income taxes of the Participant or Participant’s Beneficiary relating to or arising out of his or her participation in the Plan, and neither the Company nor the Committee or Plan Administrator shall be liable or responsible therefor other than as provided in Section 5(c).

(ii) As a condition of being a Participant in the Plan, each Participant must sign a waiver (which may be a part of the Deferral Agreement) releasing the Company and its Affiliates, the Committee, the Plan Administrator, officers of the Company or its Affiliates (the “Officers”) and the Board from any claims and liabilities regarding the matters to which the Participant has assumed the risk as set forth in this Section. Payments (in any form) to any

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Participant or Beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full satisfaction of all claims for compensation deferred and relating to the Deferral Account to which the payments relate against the Company or any Affiliate or the Committee or Plan Administrator, and the Committee or Plan Administrator may require such Participant or Beneficiary, as a condition to such payments, to execute a waiver, receipt and release to such effect.

(iii) As a condition of being a Participant in the Plan, each Participant must sign a waiver releasing the Trustee and each of its Affiliates (each, a “Released Party”) against any and all loss, claims, liability and expenses imposed on or incurred by any Released Party as a result of any acts taken or any failure to act by the Trustee, where such act or failure to act is in accordance with the directions from the Committee or Plan Administrator or any designee of the Committee or Plan Administrator.

(iv) Each Participant agrees to pay any taxes, penalties and interest such Participant or Beneficiary may incur in connection with his or her participation in this Plan, and further agrees to indemnify the Company and its Affiliates, the Committee, the Plan Administrator, Officers and the Board for such taxes, penalties and interest the Participant or Participant’s Beneficiary incurs and fails to pay and for which the Company is made liable by the appropriate tax authority.

(c) Unfunded Status of Awards, Creation of Trusts. The Plan is intended to constitute an unfunded plan for deferred compensation and each Participant shall rely solely on the unsecured promise of the Company for payment hereunder. With respect to any payment not yet made to a Participant under the Plan, nothing contained in the Plan shall give a Participant any rights that are greater than those of a general unsecured creditor of the Company.

(d) Participant Rights. No provision of the Plan or transaction hereunder shall confer upon any Participant any right or impose upon any Participant any obligation to be employed by the Company or an Affiliate, or to interfere in any way with the right of the Company or an Affiliate to increase or decrease the amount of any compensation payable to such Participant. Subject to the limitations set forth in Section 8(c) hereof, the Plan shall inure to the benefit of, and be binding upon, the parties hereto and their successors and assigns.

(e) Tax Withholding. The Company shall have the right to deduct from amounts otherwise credited to or paid from a Deferral Account any sums that federal, state, local or foreign tax law requires to be withheld.

(f) Governing Law. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of California, without giving effect to principles of conflicts of laws to the extent not pre-empted by federal law.

(g) Limitation. A Participant and the Participant’s Beneficiary shall assume all risk in connection with (i) the performance of the Managers, (ii) the performance of the Hypothetical Investments, and (iii) the tax treatment of amounts deferred under or paid pursuant to the Plan, and the Company, the Committee, the Plan Administrator, and the Board shall not be liable or responsible therefor.

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(h) Construction. The captions and numbers preceding the sections of the Plan are included solely as a matter of convenience of reference and are not to be taken as limiting or extending the meaning of any of the terms and provisions of the Plan. Whenever appropriate, words used in the singular shall include the plural or the plural may be read as the singular.

(i) Severability. In the event that any provision of the Plan shall be declared illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining provisions of the Plan but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or invalid provision had never been inserted herein.

(j) Status. The establishment and maintenance of, or allocations and credits to, the Deferral Account of any Participant shall not vest in any Participant any right, title or interest in or to any Plan or Company assets or benefits except at the time or times and upon the terms and conditions and to the extent expressly set forth in the Plan and in accordance with the terms of any Trust.

(k) Spouse’s Interest. The interest in the benefits hereunder of a Participant’s spouse who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse’s will, nor shall such interest pass under the laws of intestate succession.

(l) Successors. The provisions of the Plan shall bind the Company and its successors.

9. Claims Procedures.

(a) Presentation of Claim. If any person (a “Claimant”) does not believe that he or she will receive the benefits to which the person is entitled or believes that fiduciaries of the Plan have breached their duties or that the Plan is not being operated properly or that his or her legal rights have been or are being violated with respect to the Plan, the Claimant must file a formal claim with the Committee or Plan Administrator under the procedures set forth in this Article. The procedures in this Article shall apply to all claims that any person has with respect to the Plan, including claims against fiduciaries and former fiduciaries, unless the Committee or Plan Administrator determines, in its sole discretion, that it does not have the power to grant, in substance, all relief reasonably being sought by the Claimant. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

(b) Notification of Decision. The Committee or Plan Administrator shall consider a Claimant’s claim within twenty-five (25) days of receipt of the claim and shall notify the Claimant in writing:

(i) that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or

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(ii) that the Committee or Plan Administrator has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner reasonably believed to be understood by the Claimant:

(A) a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and

(B) an explanation of the claim review procedure set forth below.

(c) Review of a Denied Claim. Within sixty (60) days after receiving a notice from the Committee or Plan Administrator that a claim has been denied in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file with the Committee or Plan Administrator a written request for a review of the denial of the claim. Thereafter, but not later than thirty (30) days after the review procedure begins, the Claimant (or the Claimant’s duly authorized representative):

(i) may review pertinent documents;

(ii) will be provided specific reference(s) to the pertinent Plan provisions upon which the decision was based; and

(iii) will be informed of such other matters as the Committee or Plan Administrator deems relevant.

(d) Arbitration. If a Claimant’s claim described in Section 9(a) (an “Arbitrable Dispute”) is denied pursuant to Section 9(b) and 9(c), the Claimant’s only further recourse shall be to submit the claim to final and binding arbitration in the city of San Jose, State of California, before an experienced employment arbitrator selected in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association. Except as otherwise provided in this Section 9(d) or Section 9(f), each party shall pay the fees of their respective attorneys, the expenses of their witnesses and any other expenses connected with the arbitration, but all other costs of the arbitration, including the fees of the arbitrator, costs of any record or transcript of the arbitration, administrative fees and other fees and costs shall be paid in equal shares by each party (or, if applicable, each group of parties) to the arbitration. In any dispute involving a Claimant in which the Claimant prevails, the Company shall reimburse the Claimant’s reasonable attorneys fees and related expenses. Arbitration in this manner shall be the exclusive remedy for any Arbitrable Dispute. The arbitrator’s decision or award shall be fully enforceable and subject to an entry of judgment by a court of competent jurisdiction. Should any party attempt to resolve an Arbitrable Dispute by any method other than arbitration pursuant to this Section, the responding party shall be entitled to recover from the initiating party all damages, expenses and attorneys fees incurred as a result.

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(e) Legal Action. Prior to a Change of Control, except to enforce an arbitrator’s award, no actions may be brought by a Claimant in any court with respect to an Arbitrable Dispute.

(f) Following a Change of Control. Upon the occurrence of a Change of Control, an independent party selected jointly by the Participants in the Plan prior to the Change in the Control and the Committee or the Plan Administrator or other appropriate person shall assume all duties and responsibilities of the Committee or Plan Administrator under this Article 9 and actions may be brought by a Claimant in any appropriate court with respect to an Arbitrable Dispute. After a Change of Control, if any person or entity has failed to comply (or is threatening not to comply) with any of its obligations under the Plan, or takes or threatens to take any action to deny, diminish or to recover from any Participant the benefits intended to be provided thereunder, the Company shall reimburse the Participant for reasonable attorneys fees and related costs incurred in the successful pursuance or defense of the Participant’s rights. If the Participant does not prevail, attorneys fees shall also be payable under the preceding sentence to the extent the Participant had reasonable justification for pursuing its claim, but only to the extent that the scope of such representation was reasonable.

10. Effective Date.

The Plan shall be effective as of July 7, 2005.

Flextronics International USA, Inc.

By:	/s/ Thomas J. Smach
	Thomas J. Smach
	Chief Financial Officer

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EXHIBIT A – Trust Agreement

The Merrill Lynch Non-Qualified Deferred

Compensation Plan Trust Agreement

TRUST UNDER:

<<Plan Name>>

DEFERRED COMPENSATION PLAN

This Agreement is by and between                                                               (the “Employer”) and Merrill Lynch Trust Company, FSB (the “Trustee”);

WHEREAS, the Employer has adopted the Non-Qualified Deferred Compensation Plan identified above;

WHEREAS, the Employer has incurred or expects to incur liability under the terms of such Plan with respect to the individuals participating in such Plan;

WHEREAS, the Employer wishes to establish a trust (the “Trust”) and to contribute to the Trust assets that shall be held therein, subject to the claims of the Employer’s creditors in the event of the Employer’s Insolvency, as herein defined, until paid to Plan participants and their beneficiaries in such manner and at such times as specified in the Plan;

WHEREAS, it is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as an unfunded plan maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees for purpose of Title I of the Employee Retirement Income Security Act of 1974;

WHEREAS, it is the intention of the Employer to make contributions to the Trust to provide itself with a source of funds to assist it in the meeting of its liabilities under the Plan;

NOW, THEREFORE, the parties do hereby establish the Trust and agree that the Trust shall be comprised, held and disposed of as follows:

1. Establishment of Trust

(a) Deposit of Funds. The Employer hereby deposits with the Trustee in trust such cash and/or marketable securities, if any, which shall become the principal of the Trust to be held, administered and disposed of by the Trustee as provided in this Trust Agreement.

(b) Irrevocability. The Trust hereby established shall be irrevocable; provided that, upon termination of a participant’s employment with Employer, the Trustee shall pay to the Employer an amount equal to the unvested portion of the Participant’s Deferral Account as determined under the Plan.

(c) Grantor Trust. The Trust is intended to be a grantor trust, of which the Employer is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly.

(d) Trust Assets. The principal of the Trust, and any earnings thereon, shall be held separate and apart from other funds of the Employer and shall be used exclusively for the uses and purposes of Plan participants and general creditors as herein set forth. Plan participants and their beneficiaries shall have no preferred claim on, or any beneficial ownership interest in, any assets of the Trust. Any rights created under the Plan and this Trust Agreement shall be mere unsecured contractual rights of Plan participants and their beneficiaries against the Employer. Any assets held by the Trust will be subject to the claims of the Employer’s general creditors under federal and state law in the event of Insolvency, as defined in Section 3(a) herein.

(e) Additional Deposits. The Employer, in its sole discretion, may at any time, or from time to time, make additional deposits of cash or other property in trust with the Trustee to augment the principal to be held, administered and disposed of by the Trustee as provided in this Trust Agreement. Neither the Trustee nor any Plan participant or beneficiary shall have any right to compel such additional deposits.

(f) Acceptance of Additional Deposits. The Trustee shall not be obligated to receive such cash and/or property unless prior thereto the Trustee has agreed that such cash and/or property is acceptable to the Trustee and the Trustee has received such reconciliation, allocation, investment or other information concerning, or representation with respect to, the cash and/or property as the Trustee may require. The Trustee shall have no duty or authority to (a) require any deposits to be made under the Plan or to the Trustee; (b) compute any amount to be deposited under the Plan to the Trustee; or (c) determine whether amounts received by the Trustee comply with the Plan. Assets of the Trust may, in the Trustee’s discretion, be held in an account with an affiliate of the Trustee.

2. Payments to Plan Participants and Their Beneficiaries.

(a) Payment of Benefits by Trustee. With respect to each Plan participant, the Employer shall deliver to the Trustee a schedule (the “Payment Schedule”) that indicates the amounts payable in respect of the participant (and his or her beneficiaries), that provides a formula or other instructions acceptable to the Trustee for determining the amounts so payable, the form in which such amounts are to be paid (as provided for or available under the Plan), and the time of commencement for payment of such amounts. The Payment Schedule shall be delivered to the Trustee not more than thirty (30) business days nor fewer than fifteen (15) business days prior to the first date on which a payment is to be made to the Plan participant. Any change to a Payment Schedule shall be delivered to the Trustee not more than thirty (30) business days nor fewer than fifteen (15) business days prior to the date on which the first payment is to be made in accordance with the changed Payment Schedule. Except as otherwise provided herein, the Trustee shall make payments to Plan participants and their beneficiaries in accordance with such Payment Schedule. The Trustee shall make provisions for the reporting

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and withholding of any federal, state or local taxes that may be required to be withheld with respect to the payment of benefits pursuant to the terms of the Plan and shall pay amounts withheld to the appropriate taxing authorities or determine that such amounts have been reported, withheld and paid by the Employer, it being understood between the parties hereto that (1) the Employer shall on a timely basis provide the Trustee specific information as to the amount of taxes to be withheld and (2) the Employer shall be obligated to receive such withheld taxes from the Trustee and properly pay and report such amounts to the appropriate taxing authorities.

(b) Entitlement to Benefits. The entitlement of a Plan participant or his or her beneficiaries to benefits under the Plan shall be determined by the Employer or such party as it shall designate under the Plan, and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plan.

(c) Payment of Benefits by Employer. The Employer may make payment of benefits directly to Plan participants or their beneficiaries as they become due under the terms of the Plan. If the Employer determines to make a payment of a deferred compensation benefit directly to a participant or beneficiary as the benefit becomes payable to the participant or such participant’s beneficiary under the terms of the Plan, the Employer shall notify the Trustee of the decision to make payment of the benefit directly to the participant or the participant’s beneficiary prior to the time the benefit becomes payable to the participant or the participant’s beneficiary. The Employer shall provide written certification to the Trustee evidencing such payment, and may at that time or at a subsequent time request reimbursement from the Trustee of the amount of such payment. The Trustee, upon receipt of such written certification and such request, shall distribute such amount to the Employer. In addition, if the principal of the Trust, and any earnings thereon, are not sufficient to make payments of benefits in accordance with the terms of the Plan, the Employer shall make the balance of each payment as it falls due. The Trustee shall notify the Employer where principal and earnings are not sufficient.

(d) No Duty to Determine Sufficiency. The Trustee shall have no responsibility to determine whether the Trust is sufficient to meet the liabilities under the Plan, and shall not be liable for payments or Plan liabilities in excess of the value of the assets held in the Trust.

3. Trustee Responsibility Regarding Payments in the Event of Insolvency.

(a) Insolvency. The Trustee shall cease payment of benefits to Plan participants and their beneficiaries if the Employer is Insolvent. The Employer shall be considered “Insolvent” for purposes of this Trust Agreement if (i) the Employer is unable to pay its debts as they become due, or (ii) the Employer is subject to a pending proceeding as a debtor under the United States Bankruptcy Code.

(b) Notice of Insolvency. At all times during the continuance of this Trust, as provided in Section 1(d) hereof, the principal and income of the Trust, for which the Employer is treated as grantor and owner shall be subject to the claims of general creditors of the Employer under federal and state law as set forth below.

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(i) The Board of Directors and the Chief Executive Officer of the Employer (or, if there is no Chief Executive Officer, the highest ranking officer) shall have the duty to inform the Trustee in writing of the Insolvency of the Employer. If a person claiming to be a creditor of the Employer alleges in writing to the Trustee that the Employer has become Insolvent, the Trustee shall determine whether the Employer is Insolvent and, pending such determination, the Trustee shall discontinue payment of benefits to Plan participants or their beneficiaries.

(ii) Unless the Trustee has actual knowledge of the Insolvency of the Employer, or has received notice from the Employer or a person claiming to be a creditor alleging that the Employer is Insolvent, the Trustee shall have no duty to inquire whether the Employer is Insolvent. The Trustee may in all events rely on such evidence concerning the solvency of the Employer as may be furnished to the Trustee and that provides the Trustee with a reasonable basis for making a determination concerning the solvency of the Employer.

(iii) If at any time the Trustee has determined that the Employer is Insolvent, the Trustee shall discontinue payments to Plan participants or their beneficiaries and shall hold the assets of the Trust for the benefit of the general creditors of the Employer. Nothing in this Trust Agreement shall in any way diminish any rights of Plan participants or their beneficiaries to pursue their rights as general creditors of the Employer with respect to benefits due under the Plan or otherwise.

(iv) The Trustee shall resume the payment of benefits to Plan participants or their beneficiaries in accordance with Section 2 of this Trust Agreement only after the Trustee has determined that the Employer is not Insolvent (or is no longer Insolvent).

(c) Amount of Payments after Insolvency. Provided that there are sufficient assets, if the Trustee discontinues the payment of benefits from the Trust pursuant to Section 3(b) hereof and subsequently resumes such payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to Plan participants or their beneficiaries under the terms of the Plan for the period of such discontinuance, less the aggregate amount of any payments made to Plan participants provided for hereunder during any such period of discontinuance; provided that the Employer has given the Trustee the information with respect to such payments made during the period of discontinuance prior to resumption of payments by the Trustee.

(d) Parent Assets after Insolvency. Notwithstanding the foregoing provisions of this Section 3, to the extent a parent corporation, if any (“Parent”), contributes Parent stock or other assets to the Trust to satisfy any subsidiary corporation’s obligations to the Plan participants and beneficiaries (“Parent Assets”), such Parent Assets are subject to claims of both the general creditors of the subsidiary corporation as well as the general creditors of the Parent.

4. Payments to the Employer.

Except as provided in Section 1(b), Section 2(c) and Section 3 hereof, since the Trust is irrevocable, in accordance with Section 1(b) hereof, the Employer shall have no right or power to direct the Trustee to return to the Employer or to divert to others any of the Trust assets before the payment of all benefits have been made to Plan participants and their beneficiaries pursuant to the terms of the Plan and this Trust Agreement.

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5. Investment Authority.

(a) Investment of Principal and Interest. The Trustee shall invest and reinvest the principal and income of the Trust as directed by the Employer (including directions that the Trustee follow Plan participants’ deemed investment elections made in accordance with the terms of the Plan), which directions may be changed from time to time, all in accordance with procedures established by the Trustee. The Trustee may limit the categories of assets in which the Trust may be invested.

(b) Voting Rights. Subject to Section 5(a), the Trustee may invest in securities (including stock or rights to acquire stock) or obligations issued by the Employer. All rights associated with assets of the Trust shall be exercised by the Trustee or the person designated by the Trustee, and shall in no event be exercised by or rest with Plan participants, except that voting rights with respect to Trust assets will be exercised by the Employer, unless an investment adviser has been appointed pursuant to Section 5(d) and voting authority has been delegated to such investment adviser.

(c) Substitution of Assets. The Employer shall have the right at any time, and from time to time in its sole discretion, to substitute assets of equal fair market value for any asset held by the Trust. This right is exercised by the Employer in a nonfiduciary capacity without the approval or consent of any person in a fiduciary capacity.

(d) Appointment of Investment Manager. The Employer may appoint one or more investment managers, including any entities affiliated with the Trustee, who shall have the power to manage, acquire, or dispose of such portion of the assets of the Trust as the Employer shall determine subject to the following:

(i) An investment manager shall act in accordance with the provisions of an investment management agreement entered into between it and the Employer, an executed copy of which investment management agreement shall be filed with the Trustee;

(ii) Each such investment manager must be registered as an investment adviser under the Investment Advisers Act of 1940, and shall provide investment advice on a discretionary or nondiscretionary basis with respect to that portion of the assets of the Trust as the Employer shall specify from time to time by written direction(s) to the Trustee;

(iii) The indicia of ownership of the assets of the Trust shall be held by the Trustee at all times;

(iv) Any entity affiliated with the Trustee may act as broker or dealer to execute transactions, including the purchase of any securities directly distributed, underwritten, or issued by an entity affiliated with the Trustee, at standard commission rates, mark-ups or concessions, and to provide other management or investment services with respect to such trust, including the custody of assets;

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(v) Any direction provided to the Trustee by an investment manager shall be provided in writing or given orally and confirmed in writing, or by telephonic or electronic methods acceptable to the Trustee as soon as practicable. Alternatively, an investment manager may provide investment instructions directly to the broker or dealer and receipt by the Trustee of a confirmation of the transaction from the broker or dealer shall be conclusive evidence of such transactions. In either case, the Trustee shall have the authority within twenty-four (24) hours of receipt of such direction from the investment manager or confirmation of a transaction to instruct the investment manager to rescind the transaction if the Trustee determines that the investment is inconsistent with its operational or administrative requirements; and

(vi) The Trustee may pay any such investment manager for any such services from the assets of the Trust without reduction for any fees or compensation paid to the Trustee for its services as trustee.

Notwithstanding any other provision of the Trust Agreement to the contrary, with respect to the investment of the assets of the Trust managed by an investment manager, the Trustee shall have only the duty to follow the directions of the investment manager and the Trustee shall not be liable to anyone:

(I) for an act or omission of the investment manager with respect to the investment of such assets;

(II) or failing to act with respect to the investment or reinvestment of such assets absent direction from the investment manager; or

(III) for failing to invest, periodically review or otherwise deal with the investment of such assets.

In the event the Employer is Insolvent for purposes of Section 3 and the Employer fails to provide effective investment instructions to the Trustee as provided in Section 5(a), the Trustee may appoint one or more investment advisers who are registered as investment advisers under the Investment Advisers Act of 1940, who may be affiliates of the Trustee, to provide investment advice on a discretionary or non-discretionary basis with respect to all or a specified portion of the assets of the Trust.

(e) Powers of Trustee. Subject to Section 5(a), the Trustee, or the Trustee’s designee, is authorized and empowered:

(i) To invest and reinvest Trust assets, together with the income therefrom, in common stock, preferred stock, convertible preferred stock, bonds, debentures, convertible debentures and bonds, mortgages, notes, commercial paper and other evidences of indebtedness (acts which the Trustee deems necessary including those issued by the Trustee), shares of mutual funds (which funds may be sponsored, managed or offered by an affiliate of the Trustee), guaranteed investment contracts, bank investment contracts, other securities, policies of life insurance, annuity contracts, options, options to buy or sell securities or other assets, and all other property of any type (personal, real or mixed, and tangible or intangible);

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(ii) To deposit or invest all or any part of the assets of the Trust in savings accounts or certificates of deposit or other deposits in a bank or savings and loan association or other depository institution, including the Trustee or any of its affiliates, provided with respect to such deposits with the Trustee or an affiliate the deposits bear a reasonable interest rate;

(iii) To hold, manage, improve, repair and control all property, real or personal, forming part of the Trust; to sell, convey, transfer, exchange, partition, lease for any term, even extending beyond the duration of this Trust, and otherwise dispose of the same from time to time;

(iv) To hold in cash, without liability for interest, such portion of the Trust as is pending investments, or payment of expenses, or the distribution of benefits;

(v) To take such actions as may be necessary or desirable to protect the Trust from loss due to the default on mortgages held in the Trust including the appointment of agents or trustees in such other jurisdictions as may seem desirable, to transfer property to such agents or trustees, to grant to such agents such powers as are necessary or desirable to protect the Trust, to direct such agent or trustee, or to delegate such power to direct, and to remove such agent or trustee;

(vi) To settle, compromise or abandon all claims and demands in favor of or against the Trust;

(vii) To exercise all of the further rights, powers, options and privileges granted, provided for, or vested in trustees generally under the laws of the state in which the Trustee has its principal place of business so that the powers conferred upon the Trustee herein shall not be in limitation of any authority conferred by law, but shall be in addition thereto;

(viii) To borrow money from any source and to execute promissory notes, mortgages or other obligations and to pledge or mortgage any trust assets as security; and

(ix) To maintain accounts at, execute transactions through, and lend on an adequately secured basis stocks, bonds or other securities to, any brokerage or other firm, including any firm which is an affiliate of the Trustee.

6. Additional Powers Of The Trustee.

To the extent necessary or which it deems appropriate to implement its powers under Section 5 or otherwise to fulfill any of its duties and responsibilities as the Trustee of the Trust, the Trustee shall have the following additional powers and authority:

(a) To register securities, or any other property, in its name or in the name of any nominee, including the name of any affiliate or the nominee name designated by any affiliate, with or without indication of the capacity in which property shall be held, or to hold securities in bearer form and to deposit any securities or other property in a depository or clearing corporation;

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(b) To designate and engage the services of, and to delegate powers and responsibilities to, such agents, representatives, advisers, counsel and accountants as the Trustee considers necessary or appropriate, any of whom may be an affiliate of the Trustee or a person who renders services to such an affiliate, and, as part of its expenses under this Trust Agreement, to pay their reasonable expenses and compensation;

(c) To make, execute and deliver, as the Trustee, any and all deeds, leases, mortgages, conveyances, waivers, releases or other instruments in writing necessary or appropriate for the accomplishment of any of the powers listed in this Trust Agreement; and

(d) Generally to do all other or appropriate for the protection of the Trust.

7. Disposition of Income.

During the term of this Trust Agreement, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested.

8. Accounting by the Trustee.

The Trustee shall keep accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be made, including such specific records as shall be agreed upon in writing between the Employer and the Trustee. Within ninety (90) calendar days following the close of each calendar year and within ninety (90) calendar days after removal or resignation of the Trustee, the Trustee shall deliver to the Employer a written account of its administration of the Trust during such year or during the period from the close of the last preceding year to the date of such removal or resignation, setting forth all investments, receipts, disbursements and other transactions effected by it, including a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately), and showing all cash, securities and other property held in the Trust at the end of such year or as of the date of such removal or resignation, as the case may be. The Trustee may satisfy its obligation under this Section 8 by rendering to the Employer monthly statements setting forth the information required by this Section separately for the month covered by the statement,

9. Responsibility and Indemnity of the Trustee.

(a) Standard of Conduct. The Trustee shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims, provided, however, that the Trustee shall incur no liability to any person for any action taken pursuant to a direction, request or approval given by the Employer which is contemplated by, and in conformity with, the terms of the Plan and this Trust and is given in writing by the Employer or in such other manner prescribed by the Trustee. The Trustee shall also incur no liability to any person for any failure to act in the absence of direction, request or approval from the Employer which is contemplated by, and in conformity with, the terms of this Trust. In the event of a dispute between the Employer and a party, the Trustee may apply to a court of competent jurisdiction to resolve the dispute.

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(b) Indemnification of Trustee. The Employer hereby indemnifies the Trustee and each of its affiliates (collectively, the “Indemnified Parties”) against, and shall hold them harmless from, any and all loss, claims, liability, and expense, including reasonable attorneys’ fees, imposed upon or incurred by any Indemnified Party as a result of any acts taken, or any failure to act, in accordance with the directions from the Employer or any designee of the Employer, or by reason of the Indemnified Party’s good faith execution of its duties with respect to the Trust, including, but not limited to, its holding of assets of the Trust. Trustee is authorized to prosecute or defend actions, suits, claims or proceedings for the protection of Trust assets and of the Trustee in the performance of the duties of the Trustee and to represent the Trust in all actions, suits, claims or proceedings. The Trustee shall have the authority to pay, contest or settle any claim by or against the Trust by compromise, arbitration or otherwise; to release, in whole or in part, any claim belonging to the Trust to the extent that the claim is deemed uncollectible by the Trustee. Notwithstanding the foregoing, the Trustee may only pay or settle a claim assessed against the Trust by the Employer if it is compelled to do so by a final order of a court of competent jurisdiction which is not subject to appeal. The Employer agrees to indemnify the Trustee against the Trustee’s costs, expenses and liabilities (including, without limitation, attorneys’ fees and expenses) relating thereto. The Employer’s obligations in the foregoing regard shall be satisfied promptly by the Employer, provided that in the event the loss, claim, liability or expense involved is determined by a no longer appealable final judgment entered in a lawsuit or proceeding to have resulted from the gross negligence or willful misconduct of the Trustee, the Trustee shall promptly on request thereafter return to the Employer any amount previously received by the Trustee under this Section with respect to such loss, claim, liability or expense. If the Employer does not pay such costs, expenses and liabilities in a reasonably timely manner, the Trustee may obtain payment from the Trust without direction from the Employer.

(c) Legal Counsel. The Trustee may consult with legal counsel (who may also be counsel for the Employer generally) with respect to any of its duties or obligations hereunder.

(d) Other Advisers. The Trustee may hire agents, accountants, actuaries, investment advisers, financial consultants or other professionals to assist it in performing any of its duties or obligations hereunder.

(e) Authority of Trustee. The Trustee shall have, without exclusion, all powers conferred on the Trustee by applicable law, unless expressly provided otherwise herein, provided, however, that if an insurance policy is held as an asset of the Trust, the Trustee shall have no power to name a beneficiary of the policy other than the Trust, to assign the policy (as distinct from conversion of the policy to a different form) other than to a successor Trustee, or to loan to any person the proceeds of any borrowing against such policy.

(f) Loan Against Insurance Policy. However, notwithstanding the provisions of Section 9(e) above, the Trustee may loan to the Employer the proceeds of any borrowing against an insurance policy held as an asset of the Trust.

(g) Limitation on Trustee. Notwithstanding any powers granted to the Trustee pursuant to this Trust Agreement or to applicable law, the Trustee shall not have any power that

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could give this Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning of Section 301. 7701-2 of the Procedure and Administrative Regulations promulgated pursuant to the Internal Revenue Code.

10. Compensation and Expenses of the Trustee.

The Trustee is authorized, unless otherwise agreed by the Trustee, to withdraw from the Trust without direction from the Employer the amount of its fees in accordance with the fee schedule agreed to by the Employer and the Trustee. The Employer shall pay all administrative expenses, but if not so paid, the expenses shall be paid from the Trust.

11. Resignation and Removal of the Trustee.

(a) Resignation of Trustee. The Trustee may resign at any time by written notice to the Employer, which shall be effective sixty (60) calendar days after receipt of such notice unless the Employer and the Trustee agree otherwise.

(b) Removal of Trustee. The Trustee may be removed by the Employer on sixty (60) calendar days’ written notice or upon shorter written notice accepted by the Trustee.

(c) Transfer of Assets to Successor.

(i) Upon resignation or removal of the Trustee and appointment of a successor Trustee, all assets shall subsequently be transferred to the successor Trustee. The transfer shall be completed within 60 days after receipt of notice of resignation, removal or transfer, unless the Employer extends the time limit, provided that the Trustee is provided assurance by the Employer satisfactory to the Trustee that all fees and expenses reasonably anticipated will be paid.

(ii) Upon settlement of the account and transfer of the Trust assets to the successor Trustee, all rights and privileges under this Trust Agreement shall vest in the successor Trustee and all responsibility and liability of the Trustee with respect to the Trust and assets thereof shall terminate subject only to the requirement that the Trustee execute all necessary documents to transfer the Trust assets to the successor Trustee.

12. Appointment of Successor.

(a) Employer Appointment of Successor. If the Trustee resigns or is removed in accordance with Section 11(a) or Section 11(b), the Employer may appoint any third party, such as a bank trust department or other party that may be granted corporate trustee powers under state law, as a successor to replace the Trustee upon resignation or removal. The appointment shall be effective when accepted in writing by the new Trustee, who shall have all of the rights and powers of the former Trustee, including ownership rights in the Trust assets. The former Trustee shall execute any instrument necessary or reasonably requested by the Employer or the successor Trustee to evidence the transfer.

(b) Court Appointment of Successor. If the Trustee resigns or is removed, a successor shall be appointed, in accordance with Section 12(a) hereof, by the effective date of

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resignation or removal under Section 11(a) or Section 11(b). If no such appointment has been made, the Trustee may apply to a court of competent jurisdiction for appointment of a successor or for instructions. All expenses of the Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust.

(c) Duty of Successor Trustee. The successor Trustee need not examine the records and acts of any prior Trustee and may retain or dispose of existing Trust assets, subject to Sections 8 and 9. The successor Trustee shall not be responsible for and the Employer shall indemnify and defend the successor Trustee from any claim or liability resulting from any action or inaction of any prior Trustee or from any other past event, or any condition existing at the time it becomes successor Trustee.

13. Amendment or Termination.

(a) Amendment. This Trust Agreement may be amended by a written instrument executed by the Trustee and the Employer. Notwithstanding the foregoing, no such amendment shall conflict with the terms of the Plan or shall make the Trust revocable, since the Trust is irrevocable in accordance with Section 1(b) hereof.

(b) Termination by Employer. The Trust shall not terminate until the date on which Plan participants and their beneficiaries are no longer entitled to benefits pursuant to the terms of the Plan. Upon termination of the Trust any assets remaining in the Trust shall be returned to the Employer. Notwithstanding the preceding sentence, if Parent Assets remain in the Trust at termination, such Parent Assets shall be returned to Parent.

(c) Termination with Participant Approval. Upon written approval of participants or beneficiaries entitled to payment of benefits pursuant to the terms of the Plan, the Employer may terminate this Trust prior to the time all benefit payments under the Plan have been made. All assets in the Trust at termination shall be returned to the Employer. Notwithstanding the preceding sentence, if Parent Assets remain in the Trust at termination, such Parent Assets shall be returned to Parent.

14. Miscellaneous.

(a) Severability. Any provision of this Trust Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions hereof.

(b) No Assignment of Benefits. Benefits payable to Plan participants and their beneficiaries under this Trust Agreement may not be anticipated, assigned (either at law or in equity), alienated, pledged, encumbered or subjected to attachment, garnishment, levy, execution or other legal or equitable process.

(c) Governing Law. This Trust Agreement and its enforcement shall be governed by and construed in accordance with the laws of the State of New Jersey.

(d) Survival. The provisions of Sections 2(d), 3(b)(iii), 9(b) and 15 of this Agreement shall survive termination of this Agreement.

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(e) Conflict with Plan Document. The rights, duties, responsibilities, obligations and liabilities of the Trustee are as set forth in this Trust Agreement, and no provision of the Plan or any other documents shall affect such rights, responsibilities, obligations and liabilities, If there is a conflict between provisions of the Plan and this Trust Agreement with respect to any subject involving the Trustee, including but not limited to the responsibility, authority or powers of the Trustee, the provisions of this Trust Agreement shall be controlling.

(f) Shareholder Communications Act. The Employer agrees that the Trustee will not supply the Employer’s name to issuers of any securities held in the Trust and, therefore, the Employer will not receive information regarding those securities directly from the issuer. Instead, the Employer will receive information from the Trustee, unless the Employer notifies the Trustee in writing otherwise.

15. Arbitration.

(a) Binding Effect. Arbitration is final and binding on the parties.

(b) Waiver of Other Remedies. The parties waive their right to seek remedies in court, including the right to jury trial.

(c) Discovery. Pre-arbitration discovery is generally more limited than and different from court proceedings.

(d) Award. The arbitrators’ award is not required to include factual findings or legal reasoning and any party’s right to appeal or seek modification of rulings by the arbitrators is strictly limited.

(e) Arbitrators. The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.

(f) Determination by Arbitration. The Employer agrees that all controversies which may arise between the Employer and either or both the Trustee and its affiliate Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) in connection with the Trust, including, but not limited to, those involving any transactions, or the construction, performance, or breach of this or any other agreement between the Employer and either or both the Trustee and MLPF&S, whether entered into prior, on, or subsequent to the date hereof, shall be determined by arbitration. Any arbitration under this Agreement shall be conducted only before the New York Stock Exchange, Inc., the American Stock Exchange, Inc., or arbitration facility provided by any other exchange of which MLPF&S is a member, the National Association of Securities Dealers, Inc., or the Municipal Securities Rulemaking Board, and in accordance with its arbitration rules then in force. The Employer may elect in the first instance whether arbitration shall be conducted before the New York Stock Exchange, Inc., the American Stock Exchange, Inc., other exchange of which MLPF&S is a member, the National Association of Securities Dealers, Inc., or the Municipal Securities Rulemaking Board, but if the Employer fails to make such election, by registered letter or telegram addressed to Merrill Lynch Trust Company, FSB, Employee Benefit Trust Operations, 1600 Merrill Lynch Drive, Pennington, NJ 08534, before the expiration of five days after receipt of a written request from MLPF&S and/or the Trustee to make such election then MLPF&S and/or the Trustee may make such election.

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Judgment upon the award of arbitrators may be entered in any court, state or federal, having jurisdiction. No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement, against any person: who has initiated in court a putative class action, or who is a member of putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until:

(i) the class certification is denied;

(ii) the class is decertified; or

(iii) the person is excluded from the class by the court.

Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this agreement except to the extent stated herein.

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Employer Copy

16. Effective Date.

The effective date of this Trust Agreement shall be                     , 20     .

IN WITNESS WHEREOF, the Employer and the Trustee have executed this Trust Agreement each by action of a duty authorized person.

By signing this Agreement, the undersigned Employer acknowledges (1) that, in accordance with Section 15 of this Agreement, the Employer is agreeing in advance to arbitrate any controversies which may arise with either or both the Trustee or MLPF&S and (2) receipt of a copy of this Agreement.

Merrill Lynch Trust Company, FSB
	<<Employer>>
By:	By:
Name/Title:	Name/Title:
Date:	Date:
	Add second signature if required:
	By:
	Name/Title:
	Date:

Merrill Lynch Trust Company, FSB Copy

Section 16. Effective Date.

The effective date of this Trust Agreement shall be                     , 20     .

IN WITNESS WHEREOF, the Employer and the Trustee have executed this Trust Agreement each by action of a duly authorized person.

By signing this Agreement, the undersigned Employer acknowledges (1) that, in accordance with Section 15 of this Agreement, the Employer is agreeing in advance to arbitrate any controversies which may arise with either or both the Trustee or MLPF&S and (2) receipt of a copy of this Agreement.

Merrill Lynch Trust Company, FSB
	<<Employer>>
By:	By:
Name/Title:	Name/Title:
Date:	Date:
	Add second signature if required:
	By:
	Name/Title:
	Date:

FLEXTRONICS INTERNATIONAL USA, INC.

2005 SENIOR EXECUTIVE DEFERRED COMPENSATION PLAN

Deferral Agreement Form for 2005

and Beneficiary Form

Please complete and sign this form and submit it to the Company no later than July 15, 2005. When signed by the eligible participant and the Company, this document shall evidence a binding contract between such parties. All capitalized terms used but not defined herein shall have the meanings assigned to them in the Plan.

1. Personal Information

Name:

Social Security Number:

Address:

2. Enrollment Information

I understand that I have been designated as a Participant in the Flextronics International USA, Inc. 2005 Senior Executive Deferred Compensation Plan (the “Plan”). By entering into this Deferral Agreement, I understand I will be enrolled in the Plan.

3. Deferral Agreements

In addition, I elect to defer (fill in any blank that applies):

(i)             % of base salary payable in cash in 2005 for services performed during payroll periods that begin after the effective date of the Plan (Provide a percentage between 0% and 50%; absence of any designation will be treated as a 0% designation) for services performed during 2005; and

(ii)             % of each cash bonus otherwise payable in the calendar year 2005 for services performed during calendar quarters that begin after the effective date of the Plan (Provide a percentage between 0% and 100%; absence of any designation will be treated as a 0% designation);

and to have the amount deferred credited to my Deferral Account under the Plan. I will be 100% vested in the portion of the Deferral Account represented by such amounts of base salary and cash bonus.

I understand and agree that the Company may reduce any amounts to be credited to my Deferral Account under this Deferral Agreement by the amount of any applicable federal,

state or local tax (including in respect of FICA taxes for social security and/or Medicare, as applicable) required to be withheld with respect to such amount, if not withheld or provided by me from other sources.

4. Distribution Election

I elect the following payment date(s) for my Deferral Account, each of which is after the date of my Separation from Service from the Company (the “Termination Date”):

Check One Applicable Box:

(    ) Single Lump Sum Payment to be payable on the fifteenth day of the first calendar month following the calendar year in which the Termination Date occurs, or, if later and if I am treated as a Specified Employee, the first business day that is at least six months after the Termination Date; or

(    ) Annually (    ) Semi-Annualy (    ) Quarterly $                     (enter an amount not less than $25,000 annually; absence of a dollar designation if a box is checked will be treated as a $25,000 designation) commencing on the fifteenth day of the first calendar month that begins after the calendar year in which the Termination Date occurs, or, if later and if I am treated as a Specified Employee, the first business day that is at least six months after the Termination Date and continuing until the date that is              (enter a number between 1 and 10; absence of any designation will be treated as a designation of 10) year(s) after the Termination Date, at which time the remaining balance of the Deferral Account shall be payable in full; or

(    ) An amount payable annually, on the fifteenth day of the first calendar month that begins after the first calendar year in which the Termination Date occurs, or, if later and if I am treated as a Specified Employee, the first business day that is at least six months after the Termination Date, and on each annual anniversary of the such day, in the amount of             % (enter a percentage between 1% and 20%; absence of a designation if the box is checked will be treated as a 20% designation) of the balance of the Deferral Account on such day, continuing until the date that is              (enter a number between 1 and 10; absence of any designation will be treated as a designation of 10) year(s) after the Termination Date, at which time the remaining balance of the Deferral Account shall be payable in full.

5. Beneficiary Election

I hereby name the following persons as beneficiaries of my remaining benefit under the Plan if I should die before I receive my entire benefit under the Plan:

Primary Beneficiary:

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Contingent Beneficiary: (Payable if the Primary Beneficiary does not survive me by at least 120 hours or disclaims all or part of the Plan benefits)

OR:

(    ) See attached primary and contingent beneficiary designation

6. Agreement

I understand and agree further that:

(a) In accordance with the Award Agreement, the unvested portion of my Deferral Account shall be forfeited and terminated for no consideration if and when my employment with the Company is terminated for any reason. Under the Plan, the portion of the unvested balance of my Deferral Account that becomes vested at any time shall therafter be accounted for in a separate vested subaccount, and any elective deferrals of my base salary and/or cash bonus shall also be accounted for in the separate vested subaccount.

(b) I cannot change my agreements and elections under Section 3 above except as expressly allowed under the Plan and this Deferral Agreement.

(c) The Plan is incorporated into and made a part of this document as though set forth in full herein. In the event there is any inconsistency between the terms of the Plan and this document, the terms of the Plan shall prevail.

(d) I can change my distribution election specified in Section 4 above at any time only in accordance with the Plan.

(e) I can change my beneficiary designation at any time by a writing delivered to the Committee or Plan Administrator. Such change shall be effective upon receipt by the Committee or Plan Adminstrator.

(f) The amount allocated to my Deferral Account pursuant to my Deferral Agreement shall be reflected in my Deferral Account established for me under the Plan. Such Deferral Account shall be considered unfunded for purposes of the Code and the Employee Retirement Income Security Act of 1974, as amended, and I shall rely solely on the unsecured promise of the Company for payments with respect to my Deferral Account.

(g) The Company may deduct from my Deferral Account the amount of any expenses incurred with respect to a particular Hypothetical Investment in which my Deferral Account is or was deemed invested if the Company acquires, holds and/or disposes of a corresponding investment.

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(h) My rights and interests under the Plan, including amounts that I am to receive under the Plan, may not be assigned, pledged, or transferred other than to the designated beneficiary upon my death (or, if none, to my estate).

(i) I waive and release the Company and its Affiliates, the Officers, the Board, the Committee and Plan Administrator, and their agents and attorneys, from any claims and liabilities (other than from gross negligence of the Company or the Committee or Plan Administrator or breach by the Company of the terms of the Plan) in connection with the Plan, Trust design, implementation or administration, my Hypothetical Investment decisions resulting in the value of my Deferral Account(s), or the selection and actions of the Trustee or any other third party providing services to the Company or the Trust in connection with the Plan or Trust, including any income taxes to me relating to or arising out of participation in the Plan and any penalties payable under Section 409A of the Code, and neither the Company nor the Committee or Plan Administrator shall be liable or responsible therefor.

(j) I agree that I or my Beneficiary shall pay any taxes, penalties and interest that I or my Beneficiary may incur in connection with my participation in the Plan, and further agree to indemnify the Company and its Affiliates, the Committee, the Plan Administrator, the Officers and the Board for such taxes, penalties and interest I incur and fail to pay and for which the Company is made liable by the appropriate tax authority, in each case, not to include taxes on any income, gains and losses of the Company from investment of the assets of the Trust that the Company has agreed to report pursuant to the Plan.

(k) I waive and release the Trustee and each of its Affiliates from any loss, claims, liability or expenses imposed on or incurred by any of them as a result of any act or failure to act by the Trustee, where such act or failure to act is in accordance with directions from the Committee or Plan Administrator.

(l) If a future change in law would, in the judgment of the Committee or Plan Administrator, likely accelerate taxation to me of amounts that would be credited to my Deferral Account in the future under this Deferral Agreement , the Company and I will attempt to amend the Plan to satisfy the requirements of the change in law and, unless and until such an amendment is agreed to, the Company shall cease deferrals under this Deferral Agreement on the effective date of such change in law.

(m) I assume all risk in connection with any decrease in value of my Deferral Account and neither the Company nor the Committee or Plan Administrator shall be liable or responsible therefor.

(n) I waive any claim against the Company and its Affiliates, Committee, Plan Administrator, the Officers and the Board for any liability relating to the income tax treatment of the Plan or the Trust or any payments received under the Plan.

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(o) My participation in the Plan does not confer upon me any right or impose upon me any obligation to be employed by the Company or an Affiliate, nor does it interfere in any way with the right of the Company or an Affiliate to increase or decrease the amount of any compensation payable to me.

(p) I have read the Plan and understand the provisions therein. I have been advised by the Company to consult with counsel before I agree to participate in the Plan.

(q) Disputes under the Plan are subject to binding arbitration in accordance with the Plan.

(r) If, and to the extent that, the Plan or this Deferral Agreement is inconsistent with any provision of an employment agreement, bonus agreement, or similar agreement between the Company and me, the provisions of the Plan and my Deferral Agreement shall control; provided that neither the Plan nor the Deferral Agreement shall otherwise amend or alter the terms of any such agreement.

(s) This Deferral Agreement and the Plan constitute the entire agreement between the Company and me and are the complete, final, and exclusive embodiment of our agreement with regard to this subject matter.

7. Initial Hypothetical Investment

I understand and agree that amounts deferred pursuant to this election shall initially be hypothetically invested in a money market fund selected by the Committee.

8. Initial Investment Manger

I designate the following initial Manager, who shall select Hypothetical Investments on my behalf under the Plan:

9. Authorization

I hereby agree to participate in the Plan and authorize the above elections. By agreeing to participate in the Plan, I agree that all benefits and rights to which I am entitled will be determined only in accordance with the terms of the Plan and all amendments thereto. I understand that this Deferral Agreement consitutes a contract between me and the Company and shall be binding on me, my successors-in-interest, my heirs, devisees and legal representatives and the Company and its legal successors.

Employee Signature Date

-5-

Agreed to by the Company

By
Name:	Michael Marks
Title:	Chief Executive Officer
Date:	July 8, 2005

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EX-10.03

EXHIBIT 10.03

July 8, 2005

Mr. Michael McNamara

Chief Operating Officer

Flextronics International USA, Inc.

2090 Fortune Drive

San Jose, California 95131

Award Agreement for Deferred Compensation Plan

Dear Michael:

I am pleased to confirm that Flextronics International USA, Inc. (the “Company”) has agreed to provide you with a deferred long term incentive bonus in return for services to be performed in the future as an employee of the Company (the “Deferred Bonus”). The amount of your Deferred Bonus will be $5,000,000. Your Deferred Bonus will not be paid currently to you. Instead, the Deferred Bonus will be credited to the account (the ”Deferral Account”) established on your behalf under the Flextronics International USA, Inc. 2005 Senior Executive Deferred Compensation Plan (the “Deferred Compensation Plan”).

Your Deferral Account will be payable to you on the date(s) following your separation from service with the Company that are specified in your Deferral Agreement entered into pursuant to the Deferred Compensation Plan. This agreement will constitute the Award Agreement referred to in Section 3 of your Deferral Agreement.

The Deferral Account will vest as follows: ten percent (10%) will vest on April 1, 2006; an additional fifteen percent (15%) will vest on April 1, 2007; an additional 20 percent (20%) will vest on April 1, 2008; an additional twenty-five percent (25%) will vest on April 1, 2009; and an additional thirty percent (30%) will vest on April 1, 2010 (the “Vesting Dates”). Your Deferral Account shall be 100% vested upon a “Change of Control” as defined in the Deferred Compensation Plan, if you are employed by the Company at that time.

The Deferral Account will be deemed invested in one or more hypothetical investments as determined by an investment manager selected by you under the Deferred Compensation Plan. If you are still an employee of the Company on a Vesting Date, a percentage of the unvested balance of your Deferral Account will be transferred to a vested subaccount of your Deferral Account maintained for you under the Plan. The percentage to be transferred will be the percentage of the Deferral Account that vests at such time divided by that percentage of the Deferral Account that has not already vested. For example, on April 1, 2006, 10% of your Deferral Account will be transferred to your vested subaccount; on April 1, 2007, if you are still employed with the Company, 16.67% (i.e., 15/90) of the unvested balance of your Deferral Account will be transferred to your vested subaccount; and on April 1, 2008, 26.67% (i.e., 20/75) of the unvested balance of your Deferral Account will be transferred to your vested subaccount. The “unvested balance” of your Deferral Account at any time will be the entire balance of your Deferral Account less the balance, if any, of your vested subaccount.

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To the extent allowed under the Deferred Compensation Plan, you may also elect to defer portions of your base salary or cash bonuses to be earned after the date of the election, and these amounts will be vested when they are credited to your account under the Deferred Compensation Plan. If you elect to defer any such amounts, they will be accounted for in your separate vested subaccount under the Deferred Compensation Plan.

If your employment with the Company is terminated for any reason (other than death or disability) before the entire Deferred Bonus has vested, the unvested balance of your Deferral Account (as determined at the end of the day of your termination) will be terminated and forfeited for no consideration.

Should your employment with the Company be terminated as a result of death or disability, you (or your estate) will be 100% vested in your Deferral Account, and the entire unvested balance of your Deferral Account will be transferred to your vested subaccount. For purposes of this agreement, you will be considered disabled if you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months or, if later, until May 1, 2010, or if, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months or, if later, until May 1, 2010, you are receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering other employees of your employer.

When your employment with the Company is terminated, you will be entitled to receive distributions of any vested balance of your Deferral Account in accordance with a payout election that you will make under the Deferred Compensation Plan.

You understand and acknowledge that your account balance under the Deferred Compensation Plan will be reachable by the Company’s general creditors upon the insolvency of the Company. You also understand and acknowledge that you will not be entitled to accelerate distributions from the Deferred Compensation Plan except in the event of your Disability or Unforeseeable Emergency as defined under the Deferred Compensation Plan.

The Deferred Bonus will be in addition to any rights that you have under any other agreement with the Company. Any Deferred Bonus will not be deemed to be salary or other compensation for the purpose of computing benefits under any employee benefit plan or other arrangement of the Company for the benefit of its employees.

The Deferred Bonus does not give you any right to be retained by the Company, and does not affect the right of the Company to dismiss any employee. The Company may withhold from any payment of the Deferred Bonus as may be required pursuant to applicable law.

Page 3

Enclosed are:

(1) Flextronics International USA, Inc. 2005 Deferred Compensation Plan;

(2) Deferral Agreement Form for 2005 and Beneficiary Form; and

(3) Summary of the 2005 Deferred Compensation Plan.

By signing below, you represent that you have read and understand these documents and have had adequate opportunity to ask any questions about the documents. You understand that although the Company has attempted to structure a plan to accomplish the tax results discussed in the documents, the Company cannot warrant that the tax effect on you will be as expected. You also understand that the Company and its representatives are not attempting to give you tax advice. We strongly advise you to seek any tax advice from your own tax adviser.

If any provision of this agreement is determined to be unenforceable, the remaining provisions shall nonetheless be given effect. This agreement shall be construed in accordance with the laws of the State of California without regard to conflict of law rules.

Sincerely,

FLEXTRONICS INTERNATIONAL USA, INC.
By:	/s/ Michael Marks
	Michael Marks
	Chief Executive Officer
Accepted and agreed on this 8th day of July, 2005.
/s/ Michael McNamara Michael McNamara

EX-10.04

EXHIBIT 10.04

July 8, 2005

Mr. Thomas Smach

Chief Financial Officer

Flextronics International USA, Inc.

2090 Fortune Drive

San Jose, California 95131

Award Agreement for Deferred Compensation Plan

Dear Tom:

I am pleased to confirm that Flextronics International USA, Inc. (the “Company”) has agreed to provide you with a deferred long term incentive bonus in return for services to be performed in the future as an employee of the Company (the “Deferred Bonus”). The amount of your Deferred Bonus will be $3,000,000. Your Deferred Bonus will not be paid currently to you. Instead, the Deferred Bonus will be credited to the account (the ”Deferral Account”) established on your behalf under the Flextronics International USA, Inc. 2005 Senior Executive Deferred Compensation Plan (the “Deferred Compensation Plan”).

Your Deferral Account will be payable to you on the date(s) following your separation from service with the Company that are specified in your Deferral Agreement entered into pursuant to the Deferred Compensation Plan. This agreement will constitute the Award Agreement referred to in Section 3 of your Deferral Agreement.

The Deferral Account will vest as follows: ten percent (10%) will vest on April 1, 2006; an additional fifteen percent (15%) will vest on April 1, 2007; an additional 20 percent (20%) will vest on April 1, 2008; an additional twenty-five percent (25%) will vest on April 1, 2009; and an additional thirty percent (30%) will vest on April 1, 2010 (the “Vesting Dates”). Your Deferral Account shall be 100% vested upon a “Change of Control” as defined in the Deferred Compensation Plan, if you are employed by the Company at that time.

The Deferral Account will be deemed invested in one or more hypothetical investments as determined by an investment manager selected by you under the Deferred Compensation Plan. If you are still an employee of the Company on a Vesting Date, a percentage of the unvested balance of your Deferral Account will be transferred to a vested subaccount of your Deferral Account maintained for you under the Plan. The percentage to be transferred will be the percentage of the Deferral Account that vests at such time divided by that percentage of the Deferral Account that has not already vested. For example, on April 1, 2006, 10% of your Deferral Account will be transferred to your vested subaccount; on April 1, 2007, if you are still employed with the Company, 16.67% (i.e., 15/90) of the unvested balance of your Deferral Account will be transferred to your vested subaccount; and on April 1, 2008, 26.67% (i.e., 20/75) of the unvested balance of your Deferral Account will be transferred to your vested subaccount. The “unvested balance” of your Deferral Account at any time will be the entire balance of your Deferral Account less the balance, if any, of your vested subaccount.

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To the extent allowed under the Deferred Compensation Plan, you may also elect to defer portions of your base salary or cash bonuses to be earned after the date of the election, and these amounts will be vested when they are credited to your account under the Deferred Compensation Plan. If you elect to defer any such amounts, they will be accounted for in your separate vested subaccount under the Deferred Compensation Plan.

If your employment with the Company is terminated for any reason (other than death or disability) before the entire Deferred Bonus has vested, the unvested balance of your Deferral Account (as determined at the end of the day of your termination) will be terminated and forfeited for no consideration.

Should your employment with the Company be terminated as a result of death or disability, you (or your estate) will be 100% vested in your Deferral Account, and the entire unvested balance of your Deferral Account will be transferred to your vested subaccount. For purposes of this agreement, you will be considered disabled if you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months or, if later, until May 1, 2010, or if, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months or, if later, until May 1, 2010, you are receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering other employees of your employer.

When your employment with the Company is terminated, you will be entitled to receive distributions of any vested balance of your Deferral Account in accordance with a payout election that you will make under the Deferred Compensation Plan.

You understand and acknowledge that your account balance under the Deferred Compensation Plan will reachable by the Company’s general creditors upon the insolvency of the Company. You also understand and acknowledge that you will not be entitled to accelerate distributions from the Deferred Compensation Plan except in the event of your Disability or Unforeseeable Emergency as defined under the Deferred Compensation Plan.

The Deferred Bonus will be in addition to any rights that you have under any other agreement with the Company. Any Deferred Bonus will not be deemed to be salary or other compensation for the purpose of computing benefits under any employee benefit plan or other arrangement of the Company for the benefit of its employees.

The Deferred Bonus does not give you any right to be retained by the Company, and does not affect the right of the Company to dismiss any employee. The Company may withhold from any payment of the Deferred Bonus as may be required pursuant to applicable law.

Page 3

Enclosed are:

(1) Flextronics International USA, Inc. 2005 Deferred Compensation Plan;

(2) Deferral Agreement Form for 2005 and Beneficiary Form; and

(3) Summary of the 2005 Deferred Compensation Plan.

By signing below, you represent that you have read and understand these documents and have had adequate opportunity to ask any questions about the documents. You understand that although the Company has attempted to structure a plan to accomplish the tax results discussed in the documents, the Company cannot warrant that the tax effect on you will be as expected. You also understand that the Company and its representatives are not attempting to give you tax advice. We strongly advise you to seek any tax advice from your own tax adviser.

If any provision of this agreement is determined to be unenforceable, the remaining provisions shall nonetheless be given effect. This agreement shall be construed in accordance with the laws of the State of California without regard to conflict of law rules.

Sincerely,

FLEXTRONICS INTERNATIONAL USA, INC.
By:	/s/ Michael Marks
	Michael Marks
	Chief Executive Officer
Accepted and agreed on this 8th day of July, 2005.
/s/ Thomas Smach
Thomas Smach

EX-10.05

EXHIBIT 10.05

Mr. Peter Tan

President, Flextronics Asia

Award Agreement for Peter Tan Deferred Compensation Plan

Dear Peter:

I am pleased to confirm that Flextronics International Asia-Pacific Ltd. (the “Company”) has agreed to provide you with a deferred long term incentive bonus in return for services to be performed in the future as an employee of the Company (the “Incentive Bonus”). The amount of your Incentive Bonus will be US $3,200,000.

The Incentive Bonus will not be paid currently to you. Instead, as of the date of this agreement, an amount equal to the Incentive Bonus (net of applicable withholding taxes, if any) will be credited to an account with Merrill Lynch or another mutually acceptable brokerage firm at a location chosen by the Company (the “Bonus Account”). The Bonus Account will be held in the name of the Company. However, an investment manager selected by you and acceptable to the Company will direct the investment of the amount held in the Bonus Account. Pending selection of an investment manager and directions as to investments of the Bonus Account, the entire Bonus Account will be invested in a money market fund selected by the brokerage firm with whom the account is maintained and approved by Flextronics.

Until April 1, 2009, the Bonus Account must be invested in one or more investment funds agreeable to you and the Company (the “Funds”). Beginning on April 1, 2009, the investment manager may cause the Bonus Account to invest in one or more securities that are traded on an established securities exchange and are reasonably acceptable to the Company, provided, however, that no investment in securities issued by Flextronics International Ltd. or its affiliates will be permitted. The investment manager will not be entitled to cause the Bonus Account to incur indebtedness or to enter into short sales or similar derivative type transactions.

As soon as practical following termination of your employment with the Company and its affiliates (other than as a result of your death or disability) at any time on or after April 1, 2008, and before April 1, 2009, the Company will pay you an amount equal to 50% of the account balance of the Bonus Account on the date of payment (net of applicable withholding taxes, if any). As soon as practical following termination of your employment with the Company and its affiliates at any time on or after April 1, 2009, the Company will pay you an amount equal to the entire account balance of the Bonus Account on the date of payment (net of applicable withholding taxes, if any). However, if your employment with the Company and its affiliate is terminated for any reason (other than death or disability) before April 1, 2008, you will not be entitled to receive any portion of the Incentive Bonus.

Should your employment with the Company and its affiliates be terminated as a result of death or disability, the Company will pay you (or your designated beneficiary) as soon as

Page 2

practical following the termination of employment an amount equal to the entire balance of the Bonus Account at such time. For purposes of this agreement, you will be considered disabled if you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months or, if later, until April 1, 2009, or if, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months or, if later, until April 1, 2009, you are receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering other employees of your employer.

At the discretion of the Company, any payment to you of the balance in the Bonus Account may be made in cash and/or in securities held in the Bonus Account, valued at their fair market value at the closing of the payment date. At any relevant payout date, the balance of the Bonus Account shall be the sum of any cash amount in the account and the fair market value of the securities held in the account, net of any accrued but unpaid account expenses. For these purposes, the fair market value of any security shall be, on a given date of valuation, (i) with respect to any mutual fund, the closing net asset value as reported in The Wall Street Journal with respect to the date of valuation and (ii) with respect to a security traded on a national securities exchange or the NASDAQ National Market, the closing price on the date of valuation as reported in The Wall Street Journal.

Expenses associated with the Bonus Account and any investments in the Bonus Account, including management fees and transaction costs, will be charged to the Bonus Account. Earnings on the Bonus Account will be reinvested in the Bonus Account, and the Company will not transfer or distribute any portion of the Bonus Account to any person while you are still employed with the Company. However, at any time after the termination of your employment with the Company, the Company may transfer or receive all or any portion of the Bonus Account balance.

No part of the balance of the Bonus Account will belong to you, and you will have no ownership or beneficial interest in the Bonus Account. Instead, the Bonus Account will be maintained solely in order to establish the amount that will be payable to you following the time of the termination of your employment with the Company and its affiliates in accordance with the terms of this agreement. Your right to receive an amount equal to the balance in the Bonus Account following termination of employment in accordance with the terms of this Agreement will represent an unfunded obligation of the Company, and accordingly will be subject to the claims of the Company’s creditors.

As owner of the Bonus Account, the Company will bear all income taxes, excluding withholding taxes on investment income, on earnings in the Bonus Account. Withholding taxes on investment income shall be born by the Bonus Account. In addition, you will be solely responsible for all taxes, penalties and interest imposed upon you by any taxing authority with respect to the Incentive Bonus when such bonus is paid to you in accordance with the terms of this Agreement or if any taxing authority determines the Incentive Bonus is taxable to you prior to such termination.

Page 3

Your interest in the Incentive Bonus may not be sold, transferred, assigned or pledged in any manner to any person, other than by will or the laws of descent and distribution. Any attempt to sell, transfer, assign or pledge your interest in the Incentive Bonus will be void.

The Incentive Bonus will be in addition to any rights that you have under any other agreement with the Company. Any Incentive Bonus will not be deemed to be salary or other compensation for the purpose of computing benefits under any employee benefit plan or other arrangement of the Company for the benefit of its employees.

The Incentive Bonus does not give you any right to be retained by the Company, and does not affect the right of the Company to dismiss you at any time or for any reason. The Company may withhold from any payment of the Incentive Bonus as may be required pursuant to applicable law.

Any disputes concerning or related to the Incentive Bonus will be resolved pursuant to final and binding arbitration in Singapore, before an experienced employment arbitrator selected in accordance with the Arbitration Rules of the Singapore International Arbitration Centre, applying Singapore law (other than Singapore principles of conflicts of law). Arbitration in this manner shall be the exclusive remedy for any such dispute. Each party will pay the fees of their respective attorneys and the expenses of their witnesses and any other expenses connected with the arbitration and will share equally all other costs of the arbitration, provided that, if you prevail in a dispute, the Company will bear your reasonable attorneys fees and related expenses for the dispute. The arbitrator’s decision or award will be fully enforceable and subject to an entry of judgment by a court of competent jurisdiction.

By signing below, you represent that you have read and understand this agreement and have had adequate opportunity to ask any questions about the Incentive Bonus. You further agree to waive and release the Company, its agents and attorneys from any claims and liabilities in connection with the design and implementation of the Incentive Bonus, selection of the investment manager, selection of the Funds by the Company, investment decisions with respect to the Bonus Account, and personal tax consequences with respect to the Incentive Bonus. You understand that the Company cannot warrant any tax effect of the Incentive Bonus. You also understand that the Company and its representatives are not attempting to give you tax advice. We strongly advise you to seek any tax advice concerning the Incentive Bonus from your own tax adviser.

If any provision of this agreement is determined to be unenforceable, the remaining provisions shall nonetheless be given effect. This agreement shall be construed in accordance with the laws of Singapore without regard to conflict of law rules.

By executing this agreement, you hereby name the following persons as beneficiaries of your benefits described in this agreement if you should die before receiving such benefits.

Primary Beneficiary:

________________________________________

________________________________________

________________________________________

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Contingent Beneficiary: (Payable if the Primary Beneficiary does not survive you or disclaims all or part of the benefits hereunder)

________________________________________

________________________________________

________________________________________

Sincerely,

FLEXTRONICS INTERNATIONAL ASIA-PACIFIC LTD.
By:	/s/ Manny Marimuthu
	Manny Marimuthu
	Director
Accepted and agreed.
/s/ Peter Tan Peter Tan