Document:

exv10w1

EXHIBIT 10.1

AVNET, INC.

2010 STOCK COMPENSATION PLAN

ARTICLE 1

PURPOSE OF THE PLAN

The Avnet, Inc. 2010 Stock Compensation Plan is intended to advance
the interests of the Company by helping Avnet and its Subsidiaries to attract,
retain, and appropriately motivate high caliber persons to serve as Eligible
Employees and Non-Employee Directors, and by providing incentives to Eligible
Employees and Non-Employee Directors that are consistent with the shareholders’
interest in maximizing the value of Avnet’s Common Stock.

ARTICLE 2

DEFINITIONS

Unless the context indicates otherwise, the following terms, when used in capitalized
form, shall have the meanings set forth below:

          2.1. “Administrator” means—

     (a) with respect to each Award granted to an Eligible Employee, the
Committee; and

     (b) with respect to each Award granted to a Non-Employee Director, the
Independent Directors.

          2.2. “Avnet” means Avnet, Inc.

          2.3. “Agreement” means the agreement evidencing an Award granted hereunder,
including any addendum to an Option Agreement relating to Stock Appreciation Rights.
Each Agreement shall be in such form as prescribed or approved by the Administrator.

          2.4. “Award” means a grant under the Plan of an Option, Stock Appreciation
Right, Restricted Stock, Restricted Stock Unit, or Other Stock Unit Award, as evidenced
by an Agreement.

          2.5. “Board of Directors” and “Director” shall mean, respectively, the Board
of Directors of Avnet and any member thereof.

          2.6. “Change in Control” means the happening of any of the following:

     (a) the acquisition, by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”)), of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 50% or more of either (A) the then outstanding shares of Stock or
(B) the combined voting power of the then outstanding voting securities of Avnet
entitled to vote generally in the election of Directors; provided, however, that
none of the following acquisitions shall constitute a Change in Control under this
subsection (a): (i) an acquisition directly from Avnet (excluding an acquisition
by virtue of the exercise of a conversion privilege), (iii) an acquisition by
Avnet, or (iv) an acquisition by any employee benefit plan (or related trust)
sponsored or maintained by Avnet or any entity controlled by Avnet; or

     (b) individuals who, as of the date of the 2010 annual meeting of
Avnet’s stockholders (the “Determination Date”), constitute the Board of Directors
(the “Incumbent Board”) cease for any

 

 

reason to constitute at least a majority of the Board of Directors; provided, however, that an individual who becomes a
Director after the Determination Date shall be treated as a member of the
Incumbent Board if (i) his election, or nomination for election by Avnet’s
stockholders, was approved by a vote of at least a majority of the Directors then
comprising the Incumbent Board, and (ii) his initial assumption of office does not
occur as a result of an actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board; or

     (c) A complete liquidation or dissolution of Avnet or the sale or other
disposition of all or substantially all of the assets of Avnet.

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

     2.8. “Committee” means the Compensation Committee of the Board of Directors, which
shall consist of three or more Non-Employee Directors appointed by the Board of
Directors; provided, however, that no individual who is not both a “non-employee
director” within the meaning of Rule 16b-3 and an “outside director” within the meaning
of Section 162(m) of the Code shall serve as a member of the Committee unless there are
fewer than two Non-Employee Directors who satisfy such conditions.

     2.9. “Company” means Avnet and all its Subsidiaries.

     2.10. “Covered Participant” means a Participant who is a “covered employee” under
Code Section 162(m).

     2.11. “Eligible Employee” means a regular full-time employee of Avnet or of any of
its Subsidiaries (including any Director who is also a regular full-time employee of
Avnet or a Subsidiary). The term “Eligible Employee” shall also include an individual
retained by Avnet or any of its Subsidiaries to render services as a consultant or
advisor other than services in connection with the offer or sale of securities in a
capital-raising transaction or services that directly or indirectly promote or maintain
a market for Avnet’s securities.

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

     2.13. “Executive Officer” means an employee designated by Avnet as an executive
officer under Rule 16b-3.

     2.14. “Fair Market Value” means, with respect to any date, the closing price (as
reported for New York Stock Exchange Composite Transactions) at which shares of Stock
have been sold on such date (or, if such date is a date for which no trading is so
reported, on the next preceding date for which trading is so reported.

     2.15. “Grant Date” means, with respect to granting an Award or modification of an
outstanding Award, the date on which the material terms of the Award (including the
number of shares covered by the Award, the conditions for vesting, lapse of the Period
of Restriction, and exercise, and the purchase price, if any) are established and the
Administrator’s action constituting the making or modification of such Award is
completed, without regard to (a) the date on which the applicable Agreement is executed
or (b) whether such Award or modification is subject to future shareholder approval or
other conditions. The Grant Date for any Award shall not occur before the recipient of
the Award becomes an Eligible Employee or Non-Employee Director, as applicable.

     2.16. “Incentive Stock Option” or “ISO” means an Option intended to qualify as an
“incentive stock option” under Section 422 of the Code.

     2.17. “Independent Directors” means members of the Board of Directors acting as a
group, each of whom satisfies Avnet’s “Director Independence Standards,” which are
consistent with the director independence requirements established from time to time by
the New York Stock Exchange.

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     2.18. “Non-Employee Director” means a Director who is not an Eligible Employee.

     2.19. “Option” means an Award granted pursuant to Article 5 that gives the
recipient the right to purchase a specified number of shares at a specified price during
a specified term, subject to the terms and conditions of the applicable Agreement.

     2.20. “Optionee” means a person who, at the time in question, holds an Option that
then remains unexercised in whole or in part, has not been surrendered, and has not
expired or terminated. The term “Optionee” also includes any Successor Optionee.

     2.21. “Other Stock Unit Award” means an Award granted pursuant to Article 9.

     2.22. “Participant” means an Eligible Employee or Non-Employee Director who has
been granted an Award hereunder.

     2.23. “Period of Restriction” means the period during which the transfer of shares
of Restricted Stock is restricted, pursuant to Article 7.

     2.24. “Person” means “person” as defined in Section 3(a)(9) of the Exchange Act and
as used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section
13(d) of the Exchange Act, but excluding Avnet, any Subsidiary, and any employee benefit
plan sponsored or maintained by Avnet or any Subsidiary (including any trustee of such
plan acting as trustee).

     2.25. “Performance Criteria” means any of the following criteria as related to
Avnet, any Subsidiary, or any division or other area of Avnet or a Subsidiary: economic
profit, total stockholder return, revenues, sales, net income, earnings per share,
return on equity, cash flow, operating margin, or net worth. In addition, for any
Participant who is not a Covered Participant, Performance Criteria may include any other
criteria selected by the Committee.

     2.26. “Performance Objectives” means, for any Award that is contingent in whole or
in part on achievement of performance objectives, the objectives or other performance
levels with respect to specified Performance Criteria that are measured over a calendar
year or other specified period for the purpose of determining the amount of such Award
and/or whether such Award is granted or vested.

     2.27. “Plan” means the Avnet, Inc. 2010 Stock Compensation Plan, as set forth
herein and as amended from time to time.

     2.28. “Restricted Stock” means an Award of Stock granted pursuant to Article 7.

     2.29. “Restricted Stock Unit” means an Award granted pursuant to Article 8 that
gives the recipient a contractual right to receive cash or shares of Stock upon the
attainment of specified vesting conditions.

     2.30. “Rule 16b-3” means SEC Rule 16b-3 promulgated under the Exchange Act.

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

     2.32. “Stock” means, subject to the adjustment provisions set forth in Article 11,
Avnet’s $1.00 par value common stock.

     2.33. “Stock Appreciation Right” or “SAR” means an Award granted pursuant to
Article 6 that gives the recipient the right to receive, upon exercise of the Award, an
amount equal to the excess of the Fair Market Value of the shares of Stock with respect to which the SAR is being
exercised (determined as of the exercise date) over the exercise price set forth in the
Agreement. The amount payable upon exercise of a SAR may be paid in cash, shares of
Stock, or a combination of cash and shares of Stock with an aggregate

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Fair Market Value (determined as of the exercise date) equal to the amount described in the immediately
preceding sentence.

     2.34. “Subsidiary” means a corporation in which Avnet directly or indirectly owns
more than 50% of the total combined voting power of all classes of capital stock. The
term Subsidiary includes any corporation in which a Subsidiary described in the
immediately preceding sentence owns more than 50% of the total combined voting power of
all classes of capital stock.

     2.35. “Successor Optionee” means any person who, under the provisions of Article 5,
has acquired from an Optionee the right to exercise an Option, for so long as such
Option remains unexercised in whole or in part, and has not been surrendered, exercised,
or terminated.

ARTICLE 3

SHARES RESERVED FOR THE PLAN

     3.1. General Limitations. Subject to the adjustment provisions
set forth in Article 11, the maximum number of shares of Stock that may be delivered
pursuant to the exercise of Awards granted under the Plan shall be 7,000,000. At no
time shall there be outstanding Awards under the Plan covering more than such maximum
number of shares less the aggregate of the shares of Stock previously delivered pursuant
to the exercise of Options (including the shares of Stock previously covered by Options
surrendered in connection with the exercise of SARs), the shares of Stock with respect
to which stock-settled SARs have been exercised (without regard to the number of shares
of Stock issued upon settlement of such SARs), and the shares of Stock previously
delivered pursuant to the vesting of Restricted Stock, Restricted Stock Units and Other
Stock Unit Awards. The shares of Stock authorized hereunder shall be in addition to the
shares of Stock authorized for grant under the 2006 Avnet, Inc. Stock Compensation Plan
(the “2006 Plan”), which shall continue to be available for grant under the 2006 Plan.
Shares of Stock subject to Awards may consist of authorized but unissued shares of Stock
and/or shares of Stock held in Avnet’s treasury.

     3.2. Individual Limitations. No Covered Participant may be granted Awards for more
than 1,000,000 shares of Stock in any calendar year, and no individual may be granted
Options for more than 500,000 shares of Stock in any calendar year. In addition, no
Non-Employee Director may be granted Awards for more than 30,000 shares of Stock in any
calendar year; provided, however, that up to 60,000 shares of Stock may be subject to
Awards granted to a Non-Employee Director during the calendar year in which he first
joins the Board of Directors or is first designated as Chairman of the Board of
Directors or Lead Director.

     3.3. Termination and Expiration of Awards. If an Award is surrendered, terminates,
or expires, whether in whole or in part, the number of shares of Stock covered by such
Award immediately before such surrender, termination, or expiration shall thereupon be
added back to the number of shares of Stock otherwise available for further grants of
Awards hereunder; provided, however, that the following transactions involving shares of
Stock shall not result in shares of Stock becoming available for subsequent Awards: (a)
Stock tendered or withheld in payment of the exercise price of an Option; (b) Stock
tendered or withheld for taxes; (c) Stock that was subject to a stock-settled SAR or an
Option that was related to a SAR and was not issued upon the net settlement or net
exercise of such SAR; and (d) Stock repurchased on the open market with the proceeds of
an Option exercise.

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ARTICLE 4

ADMINISTRATION OF THE PLAN

     4.1. Plan Administration. This Plan shall be administered by the Administrator.
The Administrator shall have full and exclusive power to: (a) construe and interpret the
Plan; (b) establish and amend rules and regulations for the administration of the Plan;
and (c) correct any defect, remedy any omission, and reconcile any ambiguity or
inconsistency in the Plan or any Award in the manner and to the extent it deems
necessary or desirable to carry out the intent of the Plan and such Award. Subject to
Section 4.6, the Administrator may delegate its authority hereunder to one or more Company officers to the extent
permitted by and not inconsistent with any requirements of applicable law.

     4.2. Committee’s Authority to Grant Awards. In addition to the powers enumerated
in Section 4.1 (and without limiting the generality thereof), the Committee shall have
plenary authority and discretion to determine the time or times at which Awards shall be
granted to Eligible Employees, the Eligible Employees to whom Awards shall be granted,
the number of shares of Stock to be covered by each such Award, and (to the extent not
inconsistent with the provisions of this Plan) the terms and conditions upon which each
such Award may be exercised. Subject to the requirements of the Plan, the terms and
conditions prescribed or approved for any Agreement with an Eligible Employee shall be
entirely within the discretion of the Committee; and nothing in this Plan shall be
deemed to give any Eligible Employee any right to receive Awards.

     4.3. Independent Directors’ Authority to Grant Awards. In addition to the powers
enumerated in Section 4.1 (and without limiting the generality thereof), the Independent
Directors shall have plenary authority and discretion to determine the time or times at
which Awards shall be granted to Non-Employee Directors, the Non-Employee Directors to
whom Awards shall be granted, the number of shares of Stock to be covered by each such
Award, and (to the extent not inconsistent with the provisions of this Plan) the terms
and conditions upon which each such Award may be exercised; provided that (a) the
members of the Committee shall abstain from participating in any action taken by the
Independent Directors with respect to Awards granted or to be granted to any such
members, and (b) no Award shall be granted to a Non-Employee Director unless such grant
is approved by a majority of the Non-Employee Directors. Subject to the requirements of
the Plan, the terms and conditions prescribed or approved for any Agreement with a
Non-Employee Director shall be entirely within the discretion of the Independent
Directors; and nothing in this Plan shall be deemed to give any Non-Employee Director
any right to receive Awards.

     4.4. Actions of the Committee. A majority of the members of the Committee (but not
less than two) shall constitute a quorum, and all acts, decisions or determinations of
the Committee shall be by majority vote of such of its members as shall be present at a
meeting duly held at which a quorum is so present. Any act, decision, or determination
of the Committee reduced to writing and signed by a majority of its members (but not
less than two) shall be fully effective as if it had been made, taken or done by vote of
such majority at a meeting duly called and held.

     4.5. Reporting. The Committee shall deliver a report to the Board of Directors
with reasonable promptness following the taking of any action(s) in the administration
of this Plan, which report shall set forth in full the action(s) so taken. The Committee
shall also file such other reports and make such other information available as may from
time to time be prescribed by the Board of Directors.

     4.6. CEO Input on Award Determinations. The Committee may request recommendations
for individual Awards from the Chief Executive Officer of Avnet and, to the extent
permitted by applicable law, may delegate to the Chief Executive Officer of Avnet the
authority to make Awards to Participants who are not Executive Officers or Covered
Participants, subject to a maximum aggregate Award amount for such a group and a maximum
individual Award amount for any one Participant, as determined by the Committee.
However, only the Committee is authorized to grant Awards to Executive Officers and
Covered Participants, and the Committee may not delegate such authority.

     4.7. Decisions of the Administrator. All determinations and decisions made by the
Administrator pursuant to the provisions of the Plan shall be final, conclusive, and
binding upon all Persons and the

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Company, except to the extent that the terms of any
sale or award of shares of Stock or any grant of rights or Options under the Plan are
required by law or by the Articles of Incorporation or Bylaws of Avnet to be approved by
the Board of Directors or shareholders.

     4.8. Law Compliance. Notwithstanding any other provision of the Plan, the
Administrator may impose such conditions on any Award, and the Board may amend the Plan
in any such respects, as the Administrator or the Board determines is necessary or
desirable to avoid adverse consequences under Rule
16b-3, Section 162(m) of the Code, Section 409A of the Code. Section 280G of the
Code, or any other applicable law.

ARTICLE 5

OPTIONS

     5.1. Grant. The Committee may grant Options to Eligible Employees, and the
Independent Directors may grant Options to Non-Employee Directors.

     5.2. Exercise Price. The price per share at which Stock subject to an Option may
be purchased shall be determined by the Administrator, and shall be set forth in the
Agreement. In no event shall such exercise price be less than 100% of the Fair Market
Value of the Stock on the Grant Date.

     5.3. Term. The term of each Option granted under the Plan shall be such period of
time as the Administrator shall determine, and shall be set forth in the Agreement;
provided, however that, in no event shall an Option be exercisable after the day before
the tenth anniversary of the Grant Date. Unless sooner forfeited or otherwise
terminated pursuant to the terms hereof or of the Agreement, each Option granted under
the Plan shall expire at the end of its term, and the term may not be extended. No
Option granted hereunder may be exercised after the expiration of its term.

     5.4. Exercisability (Vesting). Each Option granted under the Plan shall become
vested and exercisable, in whole or in part, at such time or times during its term as
set forth in the Agreement; provided, however, that the exercisability of any Option may
be accelerated in whole or in part, at any time, by the Administrator. Subject to the
provisions of the Agreement, each Option granted under the Plan that has become
exercisable pursuant to the preceding sentence shall remain exercisable thereafter until
the expiration of its term as described in Section 5.3.

     5.5. Exercise. To the extent that an Option has become exercisable in accordance
with Section 5.4, such Option may be exercised by written notice to Avnet stating the
number of shares of Stock with respect to which such Award is being exercised,
accompanied by payment in full therefor as prescribed below. After receipt of such
notice and payment, subject to Section 10.6, Avnet shall either (a) deliver to the
Optionee, at the principal office of Avnet or such other place as Avnet may designate, a
certificate or certificates representing the shares of Stock acquired upon such
exercise, or (b) record the stock transfer on its book and records without the need to
issue a physical certificate. In the discretion of the Administrator, the payment due
upon exercise of an Option may be made (i) by check (certified, if so required by
Avnet); (ii) in the form of certificates representing shares of Stock (duly endorsed or
accompanied by appropriate stock powers, in either case with signature guaranteed if so
required by Avnet) with a Fair Market Value, at the date of receipt by Avnet of such
certificates and the notice above mentioned, equal to the aggregate exercise price;
(iii) by a combination of check and certificates for shares of Stock; or (iv) in any
other manner (including cashless exercise) acceptable to the Administrator.

     5.6. General Modification Rules. The Administrator may, for such consideration (if
any) as it may deem adequate and with the prior consent of the Optionee, modify the
terms of any outstanding Option; provided, however, that except to the extent permitted
by Section 5.7, no Option may be repriced, replaced, or regranted through cancellation,
or by lowering the exercise price of such Option, without shareholder approval.

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     5.7. Special Modification in the Event of a Corporate Transaction. In the event of
a corporate transaction (within the meaning of Treas. Reg. 1.424-1(a)(3)), the
Administrator may provide for the assumption or substitution of outstanding Options,
provided that the requirements of Treas. Reg. § 1.424-1(a) are satisfied with respect to
Incentive Stock Options, and the requirements of Treas. Reg. § 1.409A-1(b)(v)(D) are
satisfied with respect to all other Options.

     5.8. Special Rules for Incentive Stock Options (“ISOs”). ISOs shall be subject to
the requirements of Section 422 of the Code, including the following (all of which shall
be interpreted consistent with the intent to comply with the requirements of Section 422 of the Code and not to impose any
restrictions that are not required by Section 422):

     (a) Shares Available for ISO Grants. All shares of Stock authorized for
Awards under Article 3 are available to be issued through ISOs; provided, however,
that to the extent required by Section 422 of the Code, canceled Awards shall
continue to be counted against the number of shares available.

     (b) Optionee Must Be an Employee. No ISO shall be granted to any individual
who is not an employee of Avnet or a Subsidiary at the time of grant.

     (c) Special Rules for 10% Owners. An Incentive Stock Option shall not be
granted to an individual who, immediately before the time the Option is granted,
owns shares of Stock possessing more than 10 percent of the total combined voting
power of all classes of stock of Avnet, unless the Agreement for such Incentive
Stock Option provides that (i) the exercise price is no less than 110 percent
(110%) of the Fair Market Value of the Stock on the Grant Date (determined in
accordance with Treas. Reg. § 1.422-2(f)(1)), and (ii) the Option expires no later
than the fifth anniversary of the Grant Date.

ARTICLE 6

STOCK APPRECIATION RIGHTS (“SARs”)

     6.1. Grant. The Committee may grant SARs to Eligible Employees, and the
Independent Directors may grant SARs to Non-Employee Directors. Each SAR may be
free-standing or related to all or part of an Option. In the discretion of the
Administrator, a SAR related to an Option may be granted at any time before the related
Option is exercised, expires, is terminated, or is surrendered, and may be modified when
the related Option is modified.

     6.2. Exercise Price. The exercise price per share for each free-standing SAR
granted under the Plan shall be determined by the Administrator, and shall be set forth
in the Agreement. In no event shall the exercise price be less than 100% of the Fair
Market Value of the Stock on the Grant Date.

     6.3. Term. The term of each SAR granted under the Plan shall be such period
of time as the Administrator shall determine, and shall be set forth in the Agreement;
provided, however that in no event shall a SAR be exercisable after the day before the
tenth anniversary of the Grant Date. Unless sooner forfeited or otherwise terminated
pursuant to the terms hereof or of the Agreement, each SAR granted under the Plan shall
expire at the end of its term, and the term may not be extended. No SAR granted
hereunder may be exercised after the expiration of its term.

     6.4. Exercisability (Vesting). Each SAR shall become vested and exercisable, in
whole or in part, at such time or times during its term as set forth in the Agreement;
provided, however, that (a) the exercisability of any SAR may be accelerated in whole or
in part, at any time, by the Administrator, and (b) if a SAR relates to all or part of
an Option, such SAR shall be exercisable only to the extent that the related Option is
exercisable. Subject to the provisions of the Agreement, each SAR that is exercisable
pursuant to the preceding sentence shall remain exercisable thereafter until the
expiration of its term as described in Section 6.3.

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     6.5. Exercise. To the extent that a SAR has become exercisable in accordance with
Section 6.4, such SAR may be exercised in accordance with the procedures set forth in
Section 5.5 (Exercise of Options), but without the requirement to make a payment
therefor. If the SAR is related to all or part of an Option, the Optionee must provide
with the exercise notice an instrument effecting the surrender of the related portion of
the Option. Each SAR may be settled in shares of Stock, cash, or a combination of cash
and shares. No fractional shares shall be issued; any amount that would have been
payable in fractional shares shall be paid in cash.

     6.6. Other Conditions. The Administrator may impose any other conditions upon the
exercise of Stock Appreciation Rights. Such conditions may govern the right to exercise
SARs granted before the adoption or amendment of such conditions as well as SARs granted
thereafter.

     6.7. Modification Rules. The modification rules and restrictions set forth in
Sections 5.6 and 5.7 shall also apply with respect to SARs.

ARTICLE 7

RESTRICTED STOCK

     7.1. Grant. The Committee may grant Restricted Stock to Eligible Employees,
and the Independent Directors may grant Restricted Stock to Non-Employee Directors. The
number of shares granted pursuant to any Award shall be determined by the Administrator
and set forth in the Agreement.

     7.2. Restrictions. During the Period of Restriction established by the
Administrator and set forth in the applicable Agreement, shares of Restricted Stock
shall not be sold, transferred, pledged, assigned, exchanged, encumbered, alienated,
hypothecated, or otherwise disposed of. In addition, if a Participant ‘s employment
with the Company terminates before the end of the Period of Restriction for any shares
of Restricted Stock, all such restricted shares shall be forfeited, and all rights of
the Participant with respect to such shares of Stock shall immediately terminate without
any payment or other consideration therefor. Any forfeited shares of Restricted Stock
that had been delivered to, or held in custody for, a Participant shall be returned to
Avnet, accompanied by any instrument of transfer requested by Avnet.

     7.3. Lapse of Period of Restriction (Vesting). The Period of Restriction for each
Award of Restricted Stock shall lapse upon satisfaction of conditions established by the
Administrator and set forth in the Agreement. Such conditions may be based on (a)
continued service to Avnet or a Subsidiary for a specified period, (b) achievement of
Performance Objectives, or (c) a combination of (a) and (b). Except as provided in
Section 10.2 (Acceleration of Vesting), the Period of Restriction for any Award that is
conditioned (all or in part) on achievement of Performance Objectives shall be no less
than one (1) year from the Grant Date, and the Period of Restriction for any Award that
is not conditioned on achievement of Performance Objectives shall lapse no faster than
pro rata on an annual basis over the three (3) year period that starts on the Grant
Date.

     7.4. Settlement of Restricted Stock. Shares of Restricted Stock shall become
freely transferable immediately following the last day of the Period of Restriction. As
soon as practicable after the Period of Restriction lapses, certificates for any shares
of Restricted Stock that have not already been delivered to the Participant shall be so
delivered, at the principal office of Avnet (or such other place as Avnet may
designate), or Avnet may record the stock transfer on its book and records without the
need to issue a physical certificate.

     7.5. Voting Rights. During the Period of Restriction, Participants in whose name
Restricted Stock is granted under the Plan may exercise full voting rights with respect
to those shares.

     7.6. Dividend Rights. During the Period of Restriction, Participants in whose name
Restricted Stock is granted shall be entitled to receive all dividends and other
distributions paid with respect to such Awards, as set forth in this Section 7.6.
Dividends paid in cash shall be automatically reinvested in additional shares of
Restricted Stock at a purchase price per share equal to Fair Market Value of a share of
Stock on the date

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of such dividend is paid; provided, however fractional shares shall
not be issued. Any amount that would have been invested in a fractional share shall be
payable to the Participant in cash when the Period of Restriction for the underlying
shares lapses. All additional shares of Stock received by a Participant in respect of a
dividend or other distribution on Restricted Stock, whether through reinvestment or
through a dividend or other distribution paid in shares of Stock, shall be subject to
the same restrictions (for the same Period of Restriction) as the Restricted Stock with
respect to which they were received; and the right to receive cash with respect to any
fractional share shall be subject to forfeiture until the Period of Restriction for the
underlying shares lapses.

     7.7. Foreign Laws. Notwithstanding any other provision of the Plan, if Restricted
Stock is to be awarded to a Participant who is subject to the laws, including the tax
laws, of any country other than the United States, the Committee may, in its discretion,
direct Avnet to sell, assign, or otherwise transfer the Restricted Stock to a trust or
other entity or arrangement, rather than grant the Restricted Stock directly to the
Participant.

ARTICLE 8

RESTRICTED STOCK UNITS

     8.1. Grant. The Committee may grant Restricted Stock Units to Eligible Employees,
and the Independent Directors may grant Restricted Stock Units to Non-Employee
Directors. The number of shares of Stock underlying any Restricted Stock Unit Award
shall be determined by the Administrator and set forth in the Agreement.

     8.2. Vesting. An Award of Restricted Stock Units shall be subject to vesting
conditions established by the Administrator and set forth in the applicable Agreement.
Such vesting conditions may be based on (a) continued service to Avnet or a Subsidiary
for a specified period, (b) achievement of Performance Objectives, or (c) a combination
of (a) and (b). Except as provided in Section 10.2 (Acceleration of Vesting), (i) if
vesting of the Award is conditioned (all or in part) on achievement of Performance
Objectives, the Award shall not become vested before the first anniversary of the Grant
Date, and (ii) if vesting of the Award is not conditioned on achievement of Performance
Objectives, the Award shall become vested no faster than pro rata on an annual basis
over the three (3) year period that starts on the Grant Date. If a Participant’s
employment with the Company terminates before his Award becomes fully vested, the
unvested portion of such Award shall be forfeited.

     8.3. Settlement of Restricted Stock Units. Subject to Section 10.6, as soon as
practicable after any Restricted Stock Unit becomes vested, Avnet shall transfer to the
Participant one share of Stock for each such vested Restricted Stock Unit, cash in lieu
of shares of Stock, or a combination of cash and shares of Stock. No fractional shares
shall be issued with respect to vesting of Restricted Stock Units.

     8.4. Dividend Rights. Participants in whose name Restricted Stock Units are
granted shall not be entitled to receive dividends or other distributions with respect
to shares of Stock underlying such Restricted Stock Unit, unless the Agreement provides
otherwise. Any right to receive dividends or other distributions shall be subject to
the same vesting conditions and risk of forfeiture as the Restricted Stock Units with
respect to which such right is granted, and all dividends and distributions shall be
paid when the applicable Restricted Stock Units are settled.

ARTICLE 9

OTHER STOCK UNIT AWARDS

     9.1. Grant. The Committee may grant Other Stock Unit Awards to Eligible
Employees, and the Independent Directors may grant Other Stock Unit Awards to
Non-Employee Directors. Each Other Stock Unit Award may be granted as a stand-alone
Award or in connection with another Award made under the Plan, and may be in the form of
Stock or other securities. The number of shares of Stock or other securities underlying
any Other Stock Unit Award shall be determined by the Administrator and set forth in the
Agreement.

-9-

 

     9.2. Amount of Award. The value of each Other Stock Unit Award shall be based, in
whole or in part, on the value of the underlying Stock or other securities. The
Administrator, in its sole and complete discretion, may determine that an Other Stock
Unit Award may provide to the Participant (a) dividends or dividend equivalents (to the
extent provided in the applicable Agreement) and (b) cash payments in lieu of or in
addition to an Award.

     9.3. General Rules for Other Stock Unit Awards. Subject to the requirements of the
Plan, including this Section 9.3, the Administrator shall have sole and complete
discretion to determine the terms, restrictions, conditions, vesting requirements, and
payment rules of an Other Stock Unit Award (collectively, the “Rules”). The Rules for
each Other Stock Unit Award shall be set forth in the Award Agreement. Each Other Stock
Unit Award need not be subject to identical Rules.

     (a) An Other Stock Unit Award shall be subject to vesting conditions
established by the Administrator and set forth in the applicable Agreement. Such
vesting conditions may be based on any criterion permitted by Section 8.2;
provided that, except as provided in Section 10.2 (Acceleration of Vesting), the
minimum vesting period required by Section 8.2 shall also apply for Other Stock
Unit Awards.

     (b) An Other Stock Unit Award may be contingent on the payment of cash
consideration by the Participant upon receipt of the Award or provide that the
Award, and any Stock or other securities issued in conjunction with the Award, be
delivered without the payment of cash consideration.

     (c) An Other Stock Unit Award may be subject to a deferred payment schedule,
if so set forth in the Agreement.

     (d) The Administrator, in its sole and complete discretion, as a result of
certain circumstances, including the assumption of, or substitution of stock unit
awards of a company with which Avnet or a Subsidiary participates in an
acquisition, separation, or similar corporate transaction, may waive or otherwise
remove, in whole or in part, any restriction or condition imposed on an Other
Stock Unit Award at the time of grant.

ARTICLE 10

ADDITIONAL TERMS AND PROVISIONS

     10.1. Agreements. Promptly after the granting of any Award or the
modification of any outstanding Award, the Administrator shall cause such Participant to
be notified of such action and shall cause Avnet to deliver to such Participant an
Agreement (which Agreement shall be signed on behalf of Avnet by an officer of Avnet
with appropriate authorization therefor) evidencing the Award so granted or modified and
the terms and conditions thereof and including (when appropriate) an addendum evidencing
the SAR so granted or modified and the terms and conditions thereof.

     10.2. Acceleration of Vesting. The Administrator, in its sole discretion, may
accelerate the vesting of any Award (including the lapsing of the Period of Restriction
for Restricted Stock), or remove conditions for vesting (or lapsing of the Period of
Restriction) upon a Change in Control or the Participant’s death, retirement, layoff,
separation from service in connection with a Change in Control, or other separation from
service where the Administrator determines that such treatment is appropriate and in the
Company’s best interests, as well as upon assumption of, or in substitution for equity
awards of a company with which Avnet or a Subsidiary participates in an acquisition,
separation, merger, or similar corporate transaction; provided, however, that with
respect to an Award to a Covered Participant that is intended to qualify as “other
performance-based compensation,” waiver of performance conditions shall be permitted
only to the extent permitted by Revenue Ruling 2008-13 or any successor thereto. In
addition, the Administrator may grant awards of Restricted Stock, Restricted Stock
Units, and Other Stock Unit Awards that do not satisfy the minimum vesting periods and
Periods of Restriction prescribed by Sections 7.3, 8.2, and 9.3(a); provided, however,
that the total number of shares of Stock underlying Awards that do not satisfy such
minimum

-10-

 

vesting periods and Periods of Restriction shall not exceed five percent (5%) of
the total number of shares available for grant under the Plan.

     10.3. Tax Withholding. The Company shall have the right to deduct from all amounts
paid to a Participant or beneficiary any taxes required by law to be withheld in respect
of Awards under the Plan. In the case of an Award settled in shares of Stock, no shares
of Stock shall be issued, and no election under Section 83(b) of the Code shall be
accepted, unless and until arrangements satisfactory to the Company
have been made to satisfy any applicable withholding tax obligations. Without
limiting the generality of the foregoing and subject to such terms and conditions as the
Committee may impose, the Company shall have the right to (a) retain shares of Stock or
(b) subject to such terms and conditions as the Committee may establish from time to
time, allow Participants or beneficiaries to (i) tender shares of Stock (including
shares of Stock issuable in respect of an Award) to satisfy, in whole or in part, the
amount required to be withheld, or (ii) pay the required withholding amount to Avnet in
cash. For purposes of determining the number of shares of Stock required to satisfy a
withholding obligation, the Fair Market Value shall be calculated as of the date that
the amount to be withheld is determined. A Participant or beneficiary shall pay Avnet
cash for any fractional share that would otherwise be required to be withheld.
Regardless of the amount withheld, each Participant and beneficiary shall be responsible
at all times for paying all federal, state, and local income and employment taxes due
with respect to any Award (including taxes due with respect to imputed income), and the
Company shall not be responsible for any interest or penalty that a Participant incurs
by failing to make timely payments of tax.

     10.4. No Right to Employment. The Plan shall not confer upon any Participant or
other individual any right with respect to continuance of employment by the Company or
continuance of membership on the Board of Directors, nor shall it interfere in any way
with his right, or the Company’s right, to terminate his employment or Board membership
at any time.

     10.5. Shareholder Rights. Except provided in Article 7 with respect to Restricted
Stock, no Participant shall acquire or have any rights as a shareholder of Avnet by
virtue of any Award until the certificates representing shares of Stock issued pursuant
to the Award or the exercise thereof are delivered to such Participant or otherwise
recorded in the books and records of Avnet in accordance with the terms of the Plan.
Subsequent to such delivery of Stock certificates or recordation in the books and
records of Avnet, the recipient of shares of Stock shall have the full rights of a
holder of such Stock.

     10.6. Registration of Shares. It is Avnet’s present intention to register under
the Securities Act. Avnet shall not be obligated to sell or deliver any shares of Stock
pursuant to the granting or exercise of any Award unless and until—

     (a) either (i) Avnet has received from its counsel an opinion concluding that
such shares need not be registered under the Exchange Act, or (ii) (A) Such shares
have been registered under the Securities Act, (B) no stop order suspending the
effectiveness of such registration statement has been issued and no proceedings
therefor have been instituted or threatened under said Act, and (C) there is
available at the time of such grant and/or exercise a prospectus containing
certified financial statements and other information meeting the requirements of
Section 10(a)(3) of said Act;

     (b) such shares are (or upon official notice of issuance will be) listed on
each national securities exchange on which the Stock is then listed;

     (c) the prior approval of such delivery has been obtained from any State
regulatory body having jurisdiction (but nothing herein contained shall be deemed
to require Avnet to register or qualify as a foreign corporation in any State nor,
except as to any matter or transaction relating to the sale or delivery of such
shares, to consent in service of process in any State); and

     (d) if the Committee so requires, Avnet has received an opinion from its
counsel with respect to compliance with the matters set forth in subsections (a),
(b), and/or (c) of this Section 10.6.

-11-

 

In addition, the making of any Award or determination, the delivery or recording of a stock
transfer, and payment of any amount due to a Participant may be postponed for such period as
Avnet may require, in the exercise of reasonable diligence, to comply with the requirements of
any applicable law.

     10.7. Document Requirements. The Committee may require, as a condition of any
payment or share issuance, that certain agreements, undertakings, representations,
certificates, and/or information, as the Committee may deem necessary or advisable, be
executed or provided to the Company to assure compliance with all applicable laws. Any certificates for shares of Stock
delivered under the Plan may be subject to such stock-transfer orders and other
restrictions as the Committee may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon which
the Stock is then listed, and any applicable federal or state securities law.

     10.8. Deferrals. The Administrator may allow a Participant to elect to defer
receipt of any payment of cash or any delivery of shares of Stock that would otherwise
be due to such Participant by virtue of the exercise, earn-out, or settlement of any
Award made under the Plan, other than Options or Stock Appreciation Rights. If such
election is permitted, the Committee shall establish rules and procedures for such
deferrals, including provisions that the Committee or the Participant determines are
necessary or advisable to comply with, or avoid being subject to, the requirements of
Section 409A of the Code, and provisions for the payment or crediting of dividend
equivalents in respect of deferrals credited in units of Stock.

     10.9. Nontransferability. Except as otherwise provided in Section 7.7, this
Section 10.9, or the applicable Agreement, no Award granted under the Plan, and no
interests therein, may be sold, transferred, pledged, assigned, exchanged, encumbered or
otherwise alienated or hypothecated; and each Award shall be exercisable during the
Participant’s lifetime only by the Participant or his legal guardian or representative.

     (a) An Award may be transferred by testamentary disposition or the laws of
descent and distribution.

     (b) The Committee shall have sole discretion to approve, and to establish
terms and conditions for, a transfer of an Option other than an Incentive Stock
Option to (i) the child, step-child, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, son-in-law,
daughter-in-law, brother-in-law, sister-in-law, including adoptive relationships,
and any person sharing the Participant’s household (other than a tenant or
employee) of the Participant (an “Immediate Family Member”); (ii) a trust in which
Immediate Family Members have more than fifty percent of the beneficial interest;
(iii) a foundation in which Immediate Family Members or the Employee control the
management of the assets; or (iv) any other entity in which Immediate Family
Members or the Employee own more than 50% of the voting interests; provided,
however, that, without the prior approval of the Committee, no Permitted
Transferee shall further transfer an Award, either directly or indirectly, other
than by testamentary disposition or the laws of descent and distribution. For
example, without prior approval of the Committee, a Permitted Transferee may not
transfer an Award by reason of the dissolution of, or a change in the
beneficiaries of, a Permitted Transferee that is a trust; the sale, merger,
consolidation, dissolution, or liquidation of a Permitted Transferee that is a
partnership (or the sale of all or any portion of the partnership interests
therein); or the sale, merger, consolidation, dissolution or liquidation of a
Permitted Transferee that is a corporation (or the sale of all or any portion of
the stock thereof).

     (c) The Committee shall have discretion to authorize a transfer pursuant to a
domestic relations order; provided, however, that the Committee shall not be
required under any circumstance to accept or approve a transfer pursuant to a
domestic relations order.

     10.10. Applicable Law and Severability. The Plan, and its rules, rights,
agreements and regulations, shall be governed, construed, interpreted and administered
solely in accordance with the laws of the state of New York, without regard to any
conflicts or choice of law rule or principle that might otherwise refer construction or
interpretation of the Plan to the substantive law of another jurisdiction. If any
provision of the Plan is held invalid, illegal, or unenforceable, in whole or in part,
for any reason, such determination shall not

-12-

 

affect the validity, legality or enforceability of any remaining provision, portion of provision or the Plan overall,
which shall remain in full force and effect as if such invalid, illegal or unenforceable
provision (or portion thereof) had never been included in the Plan.

     10.11. Special Incentive Compensation. No shares of Stock or other remuneration
provided pursuant to an Award shall be included in compensation for purposes of
determining the amount payable to any individual under any pension, savings, retirement, life insurance, or other
employee benefits arrangement of the Company, unless otherwise determined by the
Company.

     10.12. Legends. In its sole and complete discretion, the Committee may elect to
legend certificates representing shares of Stock sold or awarded under the Plan, to make
appropriate references to the restrictions imposed on such shares.

     10.13. Section 16(b) of the Exchange Act. All Agreements for Participants subject
to Section 16(b) of the Exchange Act shall be deemed to include any such additional
terms, conditions, limitations and provisions as Rule 16b-3 requires, unless the
Committee in its discretion determines that any such Award should not be governed by
Rule 16b-3. In addition, with respect to persons subject to Section 16(b) of the
Exchange Act, transactions under the Plan are intended to comply with all applicable
conditions of Rule 16b-3. To the extent that any provision of the Plan or any action by
the Administrators fails to comply with Rule 16b-3, it shall be deemed null and void, to
the extent permitted by law and deemed advisable by the Committee.

     10.14. Section 162(m) of the Code. Each Award to a Covered Participant that is
contingent upon the achievement of Performance Objectives shall be deemed to include any
such additional terms, conditions, limitations, and other provisions as are necessary
for such Award to qualify as “other performance-based compensation” within the meaning
of Section 162(m)(4)(C) of the Code, unless the Committee in its discretion determines
that such Award is not intended to qualify as “other performance-based compensation.”
Performance Objectives for each Award granted to a Covered Employee shall be measured
either annually or cumulatively over a period of years, on an absolute basis or relative
to a pre-established target, as specified by the Committee in the Agreement. The
Performance Objectives for each Award that is intended to qualify as “other
performance-based compensation” shall be set forth in writing no later than 90 days
after commencement of the period of service (within the meaning of Treas. Reg. §
1.162-27(e)(2)(i)) to which the Performance Objectives relate (or, if sooner, before 25
percent (25%) of such period of service has elapsed), at a time when achievement of the
Performance Objectives is substantially uncertain. To the extent permitted by Section
162(m)(4)(C) of the Code, the Committee may adjust performance results to take into
account extraordinary, unusual, non-recurring, or non-comparable items, and shall have
discretion to reduce the amount due upon attainment of any Performance Objective. No
amount shall be paid to a Covered Employee pursuant to an Award that is contingent upon
the achievement of Performance Objectives unless and until the Committee has certified
that the Performance Objectives have been satisfied. To the extent required by Section
162(m) of the Code, canceled Awards shall continue to be counted against the limit set
forth in Section 3.2 on shares of Stock available for Awards.

     10.15. Section 409A of the Code. The Plan, any Award granted under the Plan, and
all Agreements evidencing such Awards, shall be interpreted, administered, and construed
consistent with the intent that (a) all options, SARs, and comparable awards shall be
exempt from Section 409A of the Code by reason of the exemption for certain stock rights
set forth in Treas. Reg. § 1.409A-1(b)(5); (b) all Awards of Restricted Stock shall be
exempt from Section 409A of the Code by reason of the exemption for restricted property
governed by Section 83 of the Code set forth in Treas. Reg. § 1.409A-1(b)(6); (c) all
Restricted Stock Unit Awards shall be exempt from Section 409A of the Code by reason of
the “short-term deferral rule” set forth in Treas. Reg. § 1.409A-1(b)(4); and (d) and
all Other Stock Unit Awards shall be exempt from Section 409A of the Code by reason of
one of the provisions referenced in clause (a), (b), or (c), except (with respect to
each type of Award) to the extent that the applicable Agreement clearly sets forth an
intent to provide for nonqualified deferred compensation that is subject to the
requirements of Section 409A.

     10.16. Application of Proceeds. The proceeds received by the Company from the sale
of Shares under the Plan shall be used for general corporate purposes.

-13-

 

     10.17. Rules of Construction. Whenever used in the Plan, (a) words in the masculine
gender shall be deemed to refer to females as well as to males; (b) words in the
singular shall be deemed to refer also to the plural; (c) the word “include” shall mean
“including but not limited to”; (d) references to a statute or regulation or statutory
or regulatory provision shall refer to that provision (or to a successor provision of
similar import) as currently in effect, as amended, or as reenacted, and to any
regulations and other formal guidance of general applicability issued thereunder; and (e) references to a law shall include
any statute, regulation, rule, court case, or other requirement established by an
exchange or a governmental authority or agency, and applicable law shall include any tax
law that imposes requirements in order to avoid adverse tax consequences.

     10.18. Headings and Captions. The headings and captions in this Plan document are
provided for reference and convenience only, shall not be considered part of the Plan,
and shall not be employed in the construction of the Plan.

     10.19. Effective Date. The Plan shall become effective on the date the Plan is
approved by Avnet’s shareholders.

ARTICLE 11

ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

     11.1. Share Adjustments. If the Stock is split, divided, or otherwise
reclassified into or exchanged for a greater or lesser number of shares of Stock or into
shares of Stock and/or any other securities of Avnet by reason of recapitalization,
reclassification, stock split or reverse split, combination of shares or other
reorganization, the term “Stock” as used herein shall thereafter mean the number and
kind of shares or other securities into which the Stock shall have been so split,
divided or otherwise reclassified or for which the Stock shall have been so exchanged;
and the remaining number of shares of Stock which may, in the aggregate, thereafter be
delivered pursuant to the grant or exercise of an Award and the remaining number of
shares of Stock which may thereafter be delivered pursuant to the exercise of any
Options and/or Stock Appreciation Rights then outstanding, shall be correspondingly
adjusted. If a dividend payable in shares of Stock is paid to the holders of
outstanding shares of Stock, the remaining number of shares of Stock which may, in the
aggregate, thereafter be delivered pursuant to the exercise or grant of Awards, and the
remaining number of shares of Stock that may thereafter be delivered pursuant to the
exercise of any Awards then outstanding shall be increased by the percentage that the
number of shares of Stock so paid as a dividend bears to the total number of shares of
Stock outstanding immediately before the payment of such dividend. If an extraordinary
cash dividend is paid to the holders of outstanding shares of Stock, the remaining
number of shares of Stock that may, in the aggregate, thereafter be delivered pursuant
to the exercise or grant of Awards and the remaining number of shares of Stock that may
thereafter be delivered pursuant to the exercise of any Awards then outstanding, shall
be equitably adjusted by the Committee.

     11.2. Exercise Price Adjustments. If the Stock is split, divided or otherwise
reclassified or exchanged, or that any dividend payable in shares or Stock or
extraordinary cash dividend is paid to the holders of outstanding shares of Stock, in
each case, as provided in the preceding paragraph, the purchase price per share of Stock
upon exercise of outstanding Options, and the aggregate number of shares of Stock with
respect to which Awards may be granted to any Participant in any calendar year, shall be
correspondingly adjusted.

     11.3. Fractional Shares. Notwithstanding any other provision of this Article 11,
if upon any adjustment made in accordance with Section 11.1 above, the remaining number
of shares of Stock which may thereafter be delivered pursuant to the exercise of any
Award then outstanding shall include a fractional share of Stock, such fractional share
of Stock shall be disregarded for all purposes of the Plan and the Optionee holding such
Award shall become entitled neither to purchase the same nor to receive cash or scrip in
payment therefor or in lieu thereof.

-14-

 

ARTICLE 12

AMENDMENT OR TERMINATION OF THE PLAN

     12.1. The Plan shall automatically terminate on November 4, 2020, unless it is
sooner terminated pursuant to Section 12.2, below. No Award shall be granted after the
Plan terminates. All Awards granted before the Plan terminates shall continue in effect
thereafter in accordance with the terms of the applicable Agreements and the Plan.

     12.2. Reservation of Rights. The Board of Directors may amend or terminate the
Plan at any time as the Board may deem advisable and in the best interests of Avnet;
provided, however, that the terms of an outstanding Award shall not be changed without
written consent of the Participant and, unless approved by the affirmative vote of a
majority of the votes cast at a meeting of the shareholders of Avnet duly called and
held for that purpose, no amendment to the Plan shall be adopted which shall (a) affect
the composition or functioning of the Committee; (b) increase the aggregate number of
shares of Stock that may be delivered pursuant to the exercise of Awards; (c) increase
the aggregate number of shares of Stock with respect to which Options or other Awards
may be granted to any Participant during any calendar year; (d) decrease the minimum
purchase price per share of Stock (in relation to the Fair Market Value thereof at the
respective dates of grant) upon the exercise of Options; or (e) extend the ten-year
maximum period within which an Award is exercisable or the termination date of the Plan.

-15-exv10w1

Exhibit 10.1

COMMERCIAL PROMISSORY NOTE

			
	$148,861.30
	 	Dated: June 10, 2010

FOR VALUE RECEIVED, the undersigned, Sun River Energy, Inc., a Colorado corporation (hereinafter
“Maker”), promises to pay to J.H. BRECH, LLC, at 501 Trophy
Lake Drive, Ste 314, PMB 116, Trophy
Club, Texas 76262, the principal sum of One Hundred forty-eight
thousand, eight hundred sixty-one Dollars and Thirty cents ($148,861.30),
together 4% interest per annum, due on demand.

     Conversion Privilege. The Holder of this Note shall have the option, in its sole discretion,
until payment of the Note, to convert all or part of the principal balance on this Note to common
stock of the issuer at $1.38 per share based upon the closing market price of the Maker’s common
stock on June 10, 2010, upon three days’ notice. Holder of this Note shall only convert in those
amounts that do not exceed 5% or more of the Maker’s issued and outstanding common stock on the
date of conversion.

     In event Maker shall (i) default in the performance of any of the obligations,
covenants or agreements legally imposed by the terms of this Note, or (ii) apply for or consent in
writing to the appointment of a receiver, trustee, or liquidator of Maker or (iii) file a
voluntary petition in bankruptcy, or admit in writing Maker’s inability to pay Maker’s debts as
they come due, or (iv) make general assignments for the benefit of creditors, or (v) file a
petition or answer seeking reorganization or rearrangement with creditors or taking advantage of
any insolvency law, or (vi) file an answer admitting the material allegations of a petition filed
against Maker in any bankruptcy, reorganization, insolvency of similar proceedings, at the option
of the Holder, the whole indebtedness evidenced hereby may be declared due and payable whereupon
the entire unpaid principal balance of this Note and all interest accrued thereon from last
payment date shall thereupon at once mature and become due and payable without presentment or
demand for payment or notice of the intent to exercise such option or notice of the exercise of
such option by the Holder, or notice of any kind, all of which arc hereby expressly waived by
Maker and may be collected by suit or other legal proceedings.

     If all or any part of the amount of this Note be declared due in accordance with the other
provisions hereof, or if any installment herein provided is not paid when due, the principal
balance as the case may be, shall bear interest at the lesser of (i) twelve percent (12%) per
annum, or (ii) the Maximum Rate allowed under applicable law until paid in full or until the Note
is reinstated. Notice of Default shall be given, in writing, to Maker, after five days after
occurrence of default. Maker shall have 10 days after written Notice of Default, within which to
cure the default plus interest at default rate, legal fees and costs incurred.

     Except as otherwise provided herein, the undersigned and all sureties, guarantors and
endorsers of this Note severally waive all notices, demands, presentments for payment notices of
non-payment, notice of intention to accelerate the maturity, notices of acceleration,
notices of dishonor, protest and notice of protest, diligence in collecting or bringing suit as to
this Note and as to each, every and all installments hereof and all obligations hereunder and
against any party hereto

 1 of 2

 

and to the application of any payment on this obligation, or as an offset hereto, and agree
to all extensions, renewals, partial payments, substitutions or evidence of indebtedness and the
taking, release or substitution of all or any part of the security or the release of any party
liable hereon with or without notice before or after maturity.

     It is the intention of the parties hereto to comply with the usury laws applicable to this
loan if any, accordingly it is agreed that notwithstanding any provision to the contrary in this
Note or in any of the documents securing payment hereof no such provision shall require the payment
or permit the collection of interest in excess of the maximum permitted by law. If any excess of
interest is provided for, contracted for, charged for or received, then the provisions of this
paragraph shall govern and control and neither the Maker hereof nor any other party liable for the
payment hereof shall be obligated to pay the amount of such excess interest. Any such excess
interest which may have been collected shall be, at the Holder’s option, either applied as a credit
against the then unpaid principal amount hereof or refunded to Maker. The effective rate of
interest shall be automatically subject to reduction to the maximum lawful contract rate allowed
under the usury laws as now or hereafter construed. It is further agreed that without limitation of
the foregoing, all calculations of the rate of interest contracted for, charged for, or received
under this Note which are made for the purposes of determining whether such rate exceeds the
maximum lawful rate, shall be made, to the extent permitted by law, by amortizing, prorating,
allocating and spreading in equal parts during the full stated term of this Note, all interest
contracted for, charged for or received from the Maker or otherwise by the Note Holder.

     In the event this Note is placed in the hands of an attorney for collection (whether or not
suit is filed), or in the event it is collected by suit or through bankruptcy, probate,
receivership or other legal proceedings (including foreclosure), the undersigned hereby agrees to
pay to the Holder as attorney’s fees a reasonable amount in addition to the principal and interest
then due hereon, and all other costs of collection.

     IN WITNESS WHEREOF, Maker has fully executed this Note as of the date first above written.

	 	 	 	 	 	 	 

	 	 	Sun River Energy, Inc.

a Colorado Corporation
	 
	 	 	 	 	 	 
	 
	 		 		 	 
	 
	 	By:	 	 	 	 
	 

	 	
	 	 

Redgic Green, Chief Executive Officer
	 	 

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