Document:

exv4w2

 

Exhibit 4.2

OFFICERS’ CERTIFICATE

          The undersigned, Raymond Sadowski and David R. Birk, do hereby certify on behalf of AVNET,
INC., a New York corporation (“Avnet” or the “Company”), that they are the duly appointed Senior
Vice President, Chief Financial Officer and Assistant Secretary, and Senior Vice President, General
Counsel and Secretary, respectively, of the Company. Each of the undersigned also hereby certifies
on behalf of the Company, pursuant to the Indenture, dated as of March 5, 2004, between the Company
and J.P. Morgan Trust Company, National Association, as Trustee (the “Indenture”), that:

RECITAL

          Pursuant to the authorizations granted by resolutions duly adopted by the Board of Directors
on August 12, 2005, and the Finance Committee of the Company on August 11, 2005, a series of
Securities (as defined in the Indenture) to be issued under the Indenture has been established (the
“Notes”).

TERMS

          The Notes shall have the terms set forth in this certificate (this “Certificate”) (defined
terms used herein and not otherwise defined herein have the meanings ascribed to such terms in the
Indenture):

     (1) The title of the Notes: The Notes shall constitute a series of Securities having
the title “6.00% Notes due 2015.”

     (2) Any limit upon the aggregate principal amount of the Notes that may be
authenticated and delivered under the Indenture (except for Notes authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes
pursuant to Sections 304, 305, 306, 906, 1107 or 1305 of the Indenture: The aggregate
principal amount of Notes that may be authenticated and delivered under the Indenture
initially shall be $250,000,000. The Company will have the ability to issue Additional
Notes as provided in Section 24(A) below.

     (3) The date or dates, or the method by which such date or dates shall be determined or
extended, on which the principal (and premium, if any) of the Notes shall be payable: The
entire principal of the Notes shall be due on September 1, 2015 (the “Stated Maturity”),
unless earlier redeemed by the Company as provided in Section 6 below.

     (4) The rate or rates (which may be fixed or variable) at which the Notes shall bear
interest, if any, or the method by which such rate or rates shall be determined, the date or
dates from which such interest shall accrue or the method by which such date or dates shall
be determined, the Interest Payment Dates on which such interest shall be payable and the
Regular Record Date, if any, for the interest payable on any Note on any Interest Payment
Date, or the method by which such date shall be determined, and the basis upon which such
interest shall be calculated if other than that of a 360-day year of twelve 30-day months:
The unpaid principal amount of

 

 

the Notes shall bear Interest at the rate of 6.00% per annum, until paid or duly
provided for, and such Interest shall accrue from August 19, 2005 or from the most recent
Interest Payment Date to which Interest has been paid or duly provided for. Except as
provided herein, Interest shall be paid semi-annually in arrears on each March 1 and
September 1 (the “Interest Payment Dates”), commencing March 1, 2006, to the Person or
Persons in whose name the Notes are registered at the close of business on the date that is
15 calendar days prior to such Interest Payment Date (each a “Regular Record Date”), whether
or not such Regular Record Date shall be a Business Day. Interest on the Notes shall be
computed on the basis of a 360-day year of twelve 30-day months.

     Payments of Interest on the Notes shall include Interest accrued to but excluding the
respective Interest Payment Dates or Redemption Date, as the case may be. In the case of a
Redemption Date that occurs after a Regular Record Date and prior to the corresponding
Interest Payment Date, the Company shall pay accrued and unpaid Interest, if any, on the
Notes being redeemed to, but not including, the Redemption Date to the same Person to whom
it will pay the principal of such Notes. If any Interest Payment Date (other than an
Interest Payment Date coinciding with the Stated Maturity or earlier Redemption Date) of a
Note falls on a day that is not a Business Day, such Interest Payment Date will be postponed
to the next succeeding Business Day; provided, that, if such Business Day falls in
the next succeeding calendar month, the Interest Payment Date will be brought forward to the
immediately preceding Business Day. If the Stated Maturity or Redemption Date of a Note
would fall on a day that is not a Business Day, the required payment of Interest, if any,
and principal will be made on the next succeeding Business Day, and no Interest on such
payment shall accrue for the period from and after the Stated Maturity or Redemption Date to
such next succeeding Business Day.

     (5) The place or places where, subject to the provisions of Section 1002 of the
Indenture, the principal of (and premium, if any) and interest, if any, on the Notes shall
be payable, where any Registered Notes may be surrendered for registration of transfer,
where Notes may be surrendered for exchange, where Notes that are convertible or
exchangeable may be surrendered for conversion or exchange, as applicable, and where notices
or demands to or upon the Company in respect of the Notes and the Indenture may be served:
The place of payment, registration of transfer and exchange for the Notes shall be at the
Company’s office or agency in the Borough of Manhattan, the City of New York, which
initially shall be the designated corporate trust office of the Trustee currently located at
GIS Unit Trust Window, 4 New York Plaza, 1st Floor, New York, New York 10004, Attention:
Institutional Trust Services. So long as the Notes are in the form of registered Global
Notes, the Company will wire, through the facilities of the Trustee, payments of principal,
Interest or the Redemption Price (as hereinafter defined) on the Global Notes to Cede & Co.,
the nominee of the depositary, The Depository Trust Company (“DTC”), as the registered owner
of the Global Notes.

     (6) The period or periods within which, the price or prices at which, the Currency or
Currencies in which, and other terms and conditions upon which, Notes may be redeemed, in
whole or in part, at the option of the Company, if the Company is to have the option:

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     (A) The Company may, at its option, redeem some or all of the Notes at any time, upon
notice to Holders of Notes of not less than 30 days nor more than 60 days prior to the
Redemption Date, at a redemption price equal to the sum of (i) the principal amount of the
Notes to be redeemed, (ii) accrued and unpaid Interest on that principal amount to (but
excluding) the Redemption Date, and (iii) the Make-Whole Amount, if any (the “Redemption
Price”).

     “Make-Whole Amount” means, in connection with the optional redemption, the excess, if
any, of (a) the aggregate present value as of the date of such redemption of each dollar of
principal being redeemed and the amount of Interest, exclusive of Interest accrued to the
Redemption Date, that would have been payable in respect of such dollar if such redemption
had not been made, determined by discounting, on a semi-annual basis (assuming a 360-day
year of twelve 30-day months), such principal and Interest at the Reinvestment Rate,
determined on the third Business Day preceding the date notice of such redemption is given,
from the respective dates on which such principal and Interest would have been payable if
such redemption had not been made, to the Redemption Date, over (b) the aggregate principal
amount of the Notes being redeemed.

     “Reinvestment Rate” means 0.30% plus the arithmetic mean of the yields under the
headings “Week Ending” published in the most recent Statistical Release under the caption
“Treasury Constant Maturities” for the maturity, rounded to the nearest month, corresponding
to the remaining life to maturity, as of the payment date of the Notes being redeemed. If
no maturity exactly corresponds to such maturity, yields for the two published maturities
most closely corresponding to such maturity will be calculated pursuant to the immediately
preceding sentence, and the reinvestment rate will be interpolated or extrapolated from such
yields on a straight-line basis, rounding in each of the relevant periods to the nearest
month. For purposes of calculating the reinvestment rate, the most recent Statistical
Release published prior to the date of determination of the Make-Whole Amount will be used.

     “Statistical Release” means the statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Federal Reserve System and which
establishes yields on actively traded United States government securities adjusted to
constant maturities or, if such statistical release is not published at the time of any
determination, then such other reasonably comparable index which shall be designated by the
Company.

     (B) In case of any redemption at the Company’s election of less than all of the Notes,
the Company shall, not less than 30 days nor more than 60 days prior to the Redemption Date,
notify the Trustee in writing of such Redemption Date and of the principal amount of the
Notes to be redeemed. Unless the procedures of the DTC provide otherwise, the Trustee shall
select the Notes to be redeemed either by lot, on a pro rata basis, or by any other method
as the Trustee shall deem fair and reasonable. The Trustee shall make the selection within
five Business Days after it receives the notice provided for in this paragraph 6(B) from
outstanding Notes not previously called for redemption. The portions of the principal
amount of Notes to be redeemed may be equal to $1,000 or any integral multiple of $1,000.
For all purposes under the Indenture and this Certificate,

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unless the context otherwise requires, all provisions relating to the redemption of
Notes shall relate, in the case of Notes redeemed or to be redeemed only in part, to that
portion of the principal amount of such Note that has been or is to be redeemed. The
Trustee promptly shall notify the Company in writing of the Notes selected for redemption
and, in the case of Notes selected for partial redemption, the principal amount thereof to
be redeemed.

     (C) Notice of redemption to Holders of Notes shall be given in the manner provided in
Section 1104 of the Indenture.

     (D) Once notice of redemption is given, Notes called for redemption become due and
payable on the Redemption Date and at the Redemption Price stated in the notice. Upon
surrender to the Paying Agent of the Notes for redemption in accordance with the notice,
such Notes shall be paid at the Redemption Price stated in the notice. With respect to any
Notes surrendered in accordance with the notice that are to be redeemed only in part, after
the Redemption Date, the Company shall issue to the Holder thereof, without a charge, a new
Note or Notes in aggregate principal amount equal to, and in exchange for, the unredeemed
portion of the principal amount of the Note so surrendered.

     (E) Prior to 10:00 a.m. New York City time on the Redemption Date, the Company shall
deposit with the Paying Agent (or if the Company or a Subsidiary or an Affiliate of either
of them is the Paying Agent, shall segregate and hold in trust as provided in Section 1003
of the Indenture), money sufficient to pay the Redemption Price of all Notes or portions
thereof to be redeemed on that date other than Notes or portions of Notes called for
redemption which on or prior thereto have been delivered by the Company to the Trustee for
cancellation. If money sufficient to pay the Redemption Price of all Notes (or portions
thereof) to be redeemed on the Redemption Date is deposited with the Paying Agent prior to
10:00 a.m. New York City time on the Redemption Date, immediately on and after such
Redemption Date, Interest will cease to accrue on such Notes or portions thereof.

     (7) Any deletions from, modifications of or additions to, the redemption provisions set
forth in Section 1102 of the Indenture, and the obligation, if any, of the Company to
redeem, repay or purchase the Notes pursuant to any sinking fund or analogous provision or
at the option of a Holder thereof, and the period or periods within which or the date or
dates on which, the price or prices at which, the Currency or Currencies in which, and other
terms and conditions upon which, the Notes shall be redeemed, repaid or purchased, in whole
or in part, pursuant to such obligation: The Notes shall not have the benefit of any
sinking fund.

     (8) If not as provided in Section 302 of the Indenture, the denomination or
denominations in which the Notes shall be issuable: The Notes initially shall be issued in
fully registered form, without coupons, in denominations of $1,000 and any integral multiple
thereof.

     (9) If other than the Trustee, the identity of each Security Registrar and/or Paying
Agent: The Paying Agent and Security Registrar initially shall be the Trustee.

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J.P. Morgan Trust Company, National Association, initially shall be the Trustee with
respect to the Notes.

     (10) If other than the total principal amount thereof, the portion of the principal
amount of the Notes that shall be payable upon declaration of acceleration of the Maturity
thereof pursuant to Section 502 of the Indenture or the method by which such portion shall
be determined: Not applicable.

     (11) If other than the Dollar, the Currency or Currencies in which payment of the
principal of (or premium, if any) or interest, if any, on, the Notes shall be made or in
which the Notes shall be denominated, and the particular provisions applicable thereto in
accordance with, in addition to or in lieu of any of the provisions of Section 312 of the
Indenture: Not applicable.

     (12) Whether the amount of payments of principal of (or premium, if any) or interest,
if any, on, the Notes may be determined with reference to an index, formula or other method
(which index, formula or method may be based, without limitation, on one or more Currencies,
commodities, equity indices or other indices), and the manner in which such amounts shall be
determined: Except as set forth in the Indenture and this Certificate, the amount of
payments of principal of or Interest on the Notes is not to be determined with reference to
an index, formula or other method.

     (13) Whether the principal of (or premium, if any) or interest, if any, on, the Notes
are to be payable, at the election of the Company or a Holder thereof, in one or more
Currencies other than that in which such Notes are denominated or stated to be payable, the
period or periods within which (including the Election Date), and the terms and conditions
upon which, such election may be made, and the time and manner of determining the exchange
rate between the Currency or Currencies in which such Notes are denominated or stated to be
payable and the Currency or Currencies in which such Notes are to be paid, in each case in
accordance with, in addition to or in lieu of any of the provisions of Section 312 of the
Indenture: Not applicable.

     (14) Provisions, if any, granting special rights to the Holders of the Notes upon the
occurrence of such events as may be specified: Not applicable.

     (15) Any deletions from, modifications of or additions to the Events of Default or
covenants (including any deletions from, modifications of or additions to any of the
provisions of Section 1009 of the Indenture) or other undertakings of the Company with
respect to the Notes, whether or not such Events of Default, covenants or undertakings are
consistent with the Events of Default, covenants or undertakings set forth herein: Not
applicable.

     (16) Whether the Notes are to be issuable as Registered Notes, Bearer Notes (with or
without coupons) or both, any restrictions applicable to the offer, sale or delivery of
Bearer Notes and the terms upon which Bearer Notes may be exchanged for Registered Notes and
vice versa (if permitted by applicable laws and regulations),

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whether any Notes are to be issuable initially in temporary global form and whether any
Notes are to be issuable in permanent global form with or without coupons and, if so,
whether beneficial owners of interests in any such permanent global Note may exchange such
interests for Notes in certificated form and of like tenor of any authorized form and
denomination and the circumstances under which any such exchanges may occur, if other than
in the manner provided in Section 305 of the Indenture, and, if Registered Notes are to be
issuable as a global Note, the identity of the depository for such series: The Notes
initially shall be issued as Registered Notes in the form of one or more Global Notes
deposited with the Trustee as custodian for DTC. The Notes shall be registered in the name
of Cede & Co., as nominee of DTC. So long as Cede & Co., as nominee of DTC, is the
registered owner of the Global Notes, Cede & Co. for all purposes will be considered the
sole holder of the Global Notes. Except as provided below, owners of beneficial interests
in the Global Notes will not be entitled to have certificates registered in their names and
will not be considered holders of the Global Notes. The Company shall issue the Notes in
the form of definitive certificated notes if DTC notifies the Company that it is unwilling
or unable to continue as depositary or DTC ceases to be a clearing agency registered under
the Exchange Act and a successor depositary is not appointed by the Company within 90 days.
In addition, beneficial interests in a Global Note may be exchanged for definitive
certificated notes upon request by or on behalf of DTC and in accordance with Section 305 of
the Indenture and DTC’s customary procedures. The Company may determine at any time and in
its sole discretion that the Notes no longer shall be represented by Global Notes, in which
case the Company will issue certificated notes in definitive form in exchange for the Global
Notes.

     (17) The date as of which any Bearer Notes and any temporary global Note representing
Outstanding Notes shall be dated if other than the date of original issuance of the first
Note to be issued: Not applicable.

     (18) (A) The Person to whom any interest on any Registered Note shall be payable, if
other than the Person in whose name such Note (or one or more Predecessor Notes) is
registered at the close of business on the Regular Record Date for such interest: Not
applicable.

     (B) The manner in which, or the Person to whom, any interest on any Bearer Note shall
be payable, if otherwise than upon presentation and surrender of the coupons appertaining
thereto as they severally mature: Not applicable.

     (C) The extent to which, or the manner in which, any interest payable on a temporary
global Note on an Interest Payment Date will be paid if other than in the manner provided in
Section 304 of the Indenture: Not applicable.

     (19) The applicability, if any, of Sections 1402 and/or 1403 of the Indenture to the
Notes and any provisions in modification of, in addition to or in lieu of any of the
provisions of Article 14 of the Indenture: The defeasance and discharge provisions of
Sections 1402 and 1403 of the Indenture are fully applicable to the Notes. There are

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no provisions in modification of, in addition to or in lieu of any of the provisions of
Article 14 of the Indenture.

     (20) If the Notes are to be issuable in definitive form (whether upon original issue or
upon exchange of a temporary Note) only upon receipt of certain certificates or other
documents or satisfaction of other conditions, then the form and/or terms of such
certificates, documents or conditions: The Notes shall not be issuable in definitive form
except under the circumstances described in Section 16 hereof and Article Two of the
Indenture.

     (21) Whether, under what circumstances and the Currency in which, the Company will pay
additional amounts as contemplated by Section 1004 of the Indenture on the Notes to any
Holder who is not a United States person (including any modification to the definition of
such term) in respect of any tax, assessment or governmental charge and, if so, whether the
Company will have the option to redeem such Notes rather than pay such additional amounts
(and the terms of any such option): The Company will not pay additional amounts as
contemplated by Section 1004 of the Indenture on the Notes to any Holder who is not a United
States person (including any modification to the definition of such term) in respect of any
tax, assessment or governmental charge.

     (22) The designation of the initial Exchange Rate Agent: Not applicable.

     (23) If the Notes are to be convertible into or exchangeable for any securities of any
Person (including the Company), the terms and conditions upon which such Notes will be so
convertible or exchangeable: Not applicable.

     (24) Any additional, fewer or different terms of the series, which terms shall not be
inconsistent with the requirements of the Trust Indenture Act:

     (A) Additional Notes: The Company will have the ability to issue additional notes of
the same series (“Additional Notes”) from time to time without the consent of the
then-existing Holders of the Notes, in compliance with the applicable terms of the Indenture
and this Certificate. Any Additional Notes will be issued on the same terms as the Notes,
will constitute part of the same series of notes as the Notes and will vote together as one
series on all matters with respect to the Notes. References to Notes herein includes
Additional Notes, except as stated, or unless the context requires otherwise.

     (B) Article Thirteen of the Indenture shall not apply to the Notes.

     (C) The form of the Note attached hereto as Exhibit A is approved.

     (D) The foregoing form and terms of the Notes have been established in conformity with
the provisions of the Indenture.

     (E) Each of the undersigned has read the Indenture and the definitions relating thereto
and has examined the resolutions referred to in the Recital of this

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Certificate and the Notes and has made such examination or investigation as is
necessary to enable the undersigned to represent as to whether or not all conditions
precedent provided in the Indenture relating to the establishment, authentication and
delivery of the Notes have been complied with. On the basis of the foregoing, all such
conditions precedent have been complied with.

     (F) Additional Definitions used herein:

     (a) “Business Day” means any day other than a Saturday, a Sunday, or a day on
which banking institutions in New York City or the place of payment are authorized
or required by law, regulation or executive order to close.

     (b) “Global Notes” means Notes that are substantially in the form of the Notes
attached hereto as Exhibit A, and that are registered in the register of Notes in
the name of the DTC or a nominee thereof.

     (c) “Interest” means, when used with reference to the Notes, any interest
payable under the terms of the Notes.

     (d) “Redemption Date” means the date specified by the Company in a notice of
redemption on which the Notes may be redeemed in accordance with the terms of the
Notes and the Indenture.

[signature page follows]

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     IN WITNESS WHEREOF, the undersigned have hereunto executed this Certificate as of the
___th day of August, 2005.

	 	 	 	 	 
	 	 	AVNET, INC.,

a New York corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:

Title:
	 	Raymond Sadowski

Senior Vice President, Chief Financial Officer

and Assistant Secretary
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:

Title:
	 	David R. Birk

Senior Vice President, General Counsel and

Secretaryexv10w11

 

Exhibit 10.11

EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made and entered into by and between Hargopal (Paul) Singh
(“Executive”) and Suntron Corporation, a Delaware corporation (the “Company”), to
be effective upon approval of the Board of Directors.

WITNESSETH:

     WHEREAS, Executive and the Company deem it to be in their respective best interests to enter
into an agreement providing for the Company’s continued employment of Executive pursuant to the
terms herein stated;

     NOW, THEREFORE, in consideration of the premises and the mutual promises and agreements
contained herein, it is hereby agreed as follows:

     1. Effective Date. Provided the Agreement has been executed by Executive, this
Agreement shall be effective immediately upon the approval of the Board of Directors and shall be
effective only upon the approval of Board of Directors, which date shall be referred to herein as
the “Effective Date.”

     2. Position and Duties.

               (a) The Company hereby agrees to employ Executive and Executive hereby agrees to continue his
employment as President and Chief Executive Officer of the Company for the “Term of
Employment” (as defined in Section 5). In this capacity, Executive shall devote his reasonable
best efforts to the performance of the services customarily incident to such office and position
and to such other services of an executive nature as may be reasonably requested by the Board of
Directors (the “Board”) of the Company which may include services for one or more
subsidiaries or affiliates of the Company. Executive, in his capacity as an employee and officer
of the Company, shall be directly responsible to and obey the reasonable and lawful directives of
the Board.

               (b) Executive shall use his reasonable best efforts during the Term of Employment to protect,
encourage, and promote the interests of the Company.

     3. Compensation.

               (a) Base Salary. The Company shall pay to Executive during the Term of Employment a
salary at the rate of three hundred thousand dollars ($300,000) per calendar year. Such salary
shall be payable in accordance with the Company’s normal payroll procedures. Executive’s annual
salary, as set forth above or as it may be increased from time to time by the Board in its sole
discretion, shall be referred to hereinafter as “Base Salary.”

               (b) Bonus Compensation. In addition to the Base Salary, for each fiscal year of the
Company, or any portion thereof, during the Term of Employment, Executive shall be eligible to
participate in an incentive-based bonus compensation program (the “Bonus Compensation”) in
an amount determined by the Compensation Committee of the Board (the “Compensation
Committee”), and consistent with other comparable executives of the Company

 

 

and its affiliated companies. The amount, if any, of such Bonus Compensation for each such
fiscal year shall be determined based upon the Company’s attainment of performance goals approved
by the Compensation Committee and/or the Board of Directors. Performance goals may include, among
other things, the Company’s earnings before interest expenses, taxes, and amortization costs
(adjusted to reflect working capital carrying costs and capital spending) (“EBITDA”) as well as
other goals and targets to be determined solely by the Compensation Committee and/or the Board of
Directors. Without limiting the foregoing, the amount of Bonus Compensation, if any, to be paid in
respect of any such fiscal year shall be up to $360,000 for meeting or exceeding the agreed upon
performance goals. The performance goals and associated potential bonus payments for fiscal year
2005 are set forth in Exhibit A hereto. For any subsequent years after 2005, the performance or
other goals, EBITDA targets, EBITDA target payout levels, and bonus payouts will be determined by
the Board of Directors or its designee, in its sole discretion.

     4. Benefits. During the Term of Employment:

               (a) Executive shall be eligible to participate in any life, health and long-term disability
insurance programs, pension and retirement programs, leave of absence and other fringe benefit
programs made available to senior executive employees of the Company from time to time, and
Executive shall be entitled to receive such other fringe benefits as may be granted to him from
time to time by the Compensation Committee.

               (b) Executive shall be entitled to four weeks paid vacation per each full year during the Term
of Employment; provided that Executive may be provided with additional paid vacation as provided by
the Board (or its designee) in its sole discretion.

               (c) Executive shall be eligible to participate in the Company’s 2002 Stock Option Plan, as
amended, and such other equity based or incentive compensation plans or programs as may be adopted
by the Company from time to time (collectively, the “Equity Plan”) for its senior
executives, at such level and in such amounts as may be determined by the Board in its sole
discretion, subject to the terms and conditions of the Equity Plan and any applicable award
agreements; provided that Executive shall receive an initial award of options to purchase 700,000
shares of common stock of the Company substantially on the terms set forth on Exhibit B hereto.

               (d) The Company shall reimburse Executive for reasonable business expenses incurred in
performing Executive’s duties and promoting the business of the Company, including, but not limited
to, reasonable entertainment expenses, travel and lodging expenses, following presentation of
documentation in accordance with the Company’s business expense reimbursement policies.

               (e) The Company shall reimburse Executive for reasonable moving expenses incurred by Executive
if he is asked to move to the Phoenix, Arizona area in connection with his employment by the
Company following presentation of documentation thereof; provided, that such expenses shall not
exceed $75,000 (grossed up for tax purposes) in the aggregate and shall include any previously
unused portion of the $50,000 in moving expenses offered to Executive to facilitate his move from
Minnesota to Texas, as set forth in the

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offer letter from Suntron Corporation to Hargopal (Paul) Singh dated June 30, 2004 for the
position of Vice President of Customer Business Management at its Gulf Coast Operations
(hereinafter “GCO 2004 Offer Letter”), but that was not used by Executive).

               (f) If Executive is not able to sell his home in Minnesota for a period of six (6) months
from the date of its placement on the market, which shall require an active listing in the multiple
listing service for a period of six (6) months, the Company will offer additional assistance to
Executive to offset the financial burden, if any, at that time.

     5. Term; Termination of Employment. As used herein, the phrase “Term of
Employment” shall mean the period commencing on the Effective Date and, except as otherwise
specifically provided below, ending on December 31, 2006, which shall automatically renew for
periods of one year unless one party gives written notice to the other at least 60 days prior to
the end of the then current term that the Agreement shall not be further extended. Notwithstanding
the foregoing, the Term of Employment shall expire on the first to occur of the following:

               (a) Termination by the Company without Cause or Resignation for Good Reason.
Notwithstanding anything to the contrary in this Agreement, whether express or implied, (i) the
Company may, at any time, terminate Executive’s employment without Cause (as defined below) by
giving Executive at least 15 days’ prior written notice of the effective date of termination and
(ii) the Executive may resign for Good Reason (as defined below) by giving the Company at least 15
days’ prior written notice of the effective date of termination. In the event Executive’s
employment hereunder is terminated by the Company without Cause (defined below), or Executive
resigns for Good Reason (defined below), the Company shall continue to pay to Executive Base Salary
for a period of twelve (12) months following the date of such termination, in accordance with the
Company’s customary payroll practices, subject to and consistent with Section 409A of the Internal
Revenue Code, and shall pay Executive a pro-rated Bonus Compensation for the year in which such
termination occurs, based on performance to the date of termination. Further, notwithstanding the
foregoing, as a condition precedent to Executive’s receipt of said continued Base Salary and any
pro-rated Bonus Compensation under this Section 5(a), Executive shall execute and shall not revoke
a Severance Agreement and Release of All Claims, consistent with and not in excess of the
consideration set forth this Section, and in a form mutually acceptable to the Company and
Executive. The Parties agree to amend this Agreement to the extent necessary to avoid imposition
of any additional tax or income recognition prior to actual payment to Executive under Internal
Revenue Code 409A and any temporary or final Treasury Regulations and IRS guidance thereunder.

               (b) Termination for Cause. The Company shall have the right to terminate Executive’s
employment at any time for Cause by giving Executive written notice of the effective date of
termination (which effective date may, except as otherwise provided below, be the date of such
notice). If the Company terminates Executive’s employment for Cause, Executive shall be paid his
unpaid Base Salary through the date of termination and the Company shall have no further obligation
hereunder from and after the effective date of such termination and the Company shall have all
other rights and remedies available under this or any other agreement and at law or in equity.

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               (c) Certain Definitions. For purposes of this Agreement:

                    (i) “Cause” shall mean:

                         (A) Fraud, misappropriation, embezzlement, dereliction of duty, or other act of material
misconduct by Executive against the Company or any of its affiliates;

                         (B) Executive’s indictment for, charging with, or conviction of a felony;

                         (C) Executive’s breach of any material term of this Agreement, including without limitation
Section 6; or

                         (D) Executive’s willful refusal or failure to act on any reasonable and lawful directive or
order from the Board which is material to the business of the Company and which remains uncured for
a period of thirty days following written notice by the Company to Executive describing such
refusal or failure to act.

                    (ii) “Change of Control” shall mean:

                         (A) The acquisition by any person, entity, or group (other than any of the Company, its
subsidiaries or any employee benefit plan of the Company) of more than 50% of the combined voting
power of the Company’s then outstanding securities;

                         (B) Stockholder approval of a merger or consolidation of the Company, other than (i) a merger
or consolidation in which the voting securities of the Company immediately prior thereto continue
to represent more than 50% of the combined voting power of the outstanding voting securities of the
surviving entity immediately after such merger or consolidation; or

                         (C) A sale of all or substantially all of the Company’s assets.

                    (iii) “Good Reason” shall mean:

                         (A) A material breach of a material term of this Agreement by the Company;

                         (B) Any material adverse change in Executive’s job title, duties, responsibilities and
authority;

                         (C) Failure of the Company to pay Base Salary, Bonus Compensation, or any other compensation
due Executive, when due under this Agreement.

provided, however, that none of the events described in this Section 5(c)(iii) shall constitute
Good Reason unless Executive shall have notified the Company in writing describing the events

4

 

which constitute Good Reason and the Company shall have failed to cure such event within thirty
days after the Company’s receipt of such written notice.

               (d) Termination on Account of Death. In the event of Executive’s death while in the
employ of the Company, his employment hereunder shall terminate on the date of his death and
Executive shall be paid his unpaid Base Salary through the date of termination of employment, any
pro-rated Bonus Compensation, if any, for the then current fiscal year when it is paid to other
active employees, and any unpaid Bonus Compensation for the prior year, if any, when it is paid to
other active employees. No additional payments under Section 5(a) shall be paid by the Company.
In addition, any other benefits payable on behalf of Executive shall be determined under the
Company’s insurance and other compensation and benefit plans and programs then in effect in
accordance with the terms of such programs.

               (e) Resignation by Executive without Good Reason. In the event that Executive’s
employment with the Company is voluntarily terminated by Executive for any reason other than for
Good Reason, Executive shall be paid his unpaid Base Salary through the date of termination of
employment and any unpaid Bonus Compensation for the prior year, if any, when it is paid to other
active employees, and the Company shall have no further obligation hereunder from and after the
effective date of termination and the Company shall have all other rights and remedies available
under this Agreement or any other agreement and at law or in equity. Executive shall give the
Company at least 30 days’ advance written notice of his intention to terminate his employment
hereunder.

               (f) Termination on Account of Disability. To the extent not prohibited by The
Americans With Disabilities Act of 1990 or other applicable law, if, as a result of Executive’s
incapacity due to physical or mental illness (as determined in good faith by a physician acceptable
to the Company and Executive), Executive shall have been absent from the full-time performance of
his duties with the Company for 120 consecutive days during any twelve (12) month period or if a
physician acceptable to the Company advises the Company that it is likely that Executive will be
unable to return to the full-time performance of his duties for 120 consecutive days during the
succeeding twelve (12) month period, his employment may be terminated for “Disability.”
During any period that Executive fails to perform his full-time duties with the Company as a result
of incapacity due to physical or mental illness, he shall continue to receive his Base Salary,
Bonus Compensation and other benefits provided hereunder, together with all compensation payable to
him under the Company’s disability plan or program or other similar plan during such period, until
Executive’s employment hereunder is terminated pursuant to this Section 5(f). Upon termination of
employment under this Section 5(f), Executive shall not be entitled to additional payments under
Section 5(a), provided, however, Executive shall be paid any pro-rated Bonus Compensation, if any,
for the then current fiscal year when it is paid to other active employees, and any unpaid Bonus
Compensation for the prior year, if any, when it is paid to other active employees. In the event
of a Disability, Executive’s benefits shall be determined under the Company’s retirement,
insurance, and other compensation and benefit plans and programs then in effect, in accordance with
the terms of such programs and to the extent permitted by applicable law.

               (g) Termination of Employment Due to Change of Control. The initial grant of options
(700,000), provided for under Section 4(c) and Exhibit B hereto, shall fully vest

5

 

at a Change of Control (as defined herein). If Company terminates Executive’s employment
without Cause (as defined herein) six (6) months prior to a Change of Control and in anticipation
thereof, or, if within the first year after a Change of Control, Executive’s employment is either
terminated without Cause (as defined herein) or Executive resigns for Good Reason (as defined
herein) , subject to Section 409A of the Internal Revenue Code, Executive will receive a bonus
(less statutory deductions) to the extent that the value of those options is less than $600,000
(two year’s base salary) at the time of termination of employment. The value of the options shall
be measured as the difference between the aggregate value of the shares issuable upon exercise of
the options and the aggregate exercise price (the gain). Termination after a Change of Control,
under this scenario, will not trigger the additional payment of one year’s salary and any pro-rated
Bonus Compensation under the provisions of Section 5(a).

     6. Confidential Information, Non-Solicitation and Non-Competition.

               (a) During the Term of Employment and for a period of one year following the date Executive
ceases to be employed by the Company (the “Non-Compete Period”) for any reason, including,
but not limited to, termination with or without Cause or Resignation for Good Reason, with the
exception of a termination of employment after a Change of Control (as defined above in Section
5(c)(ii)) in the event a successor to the Company and Executive have not reached a mutually
acceptable employment agreement prior to termination, Executive shall not, directly or indirectly,
engage in, work for, consult or provide advice or assistance to any Named Competitor (as defined
below) within the United States and its territories and protectorates. “Named Competitor”
shall mean any company that derives more than 50% of its annual revenues from the provision of high
mix electronic manufacturing services to original equipment manufacturers in the semiconductor
capital equipment, aerospace and defense electronics, computer peripherals, medical equipment,
industrial controls, telecommunications equipment and/or electronic instrumentation industries.
Executive further agrees that during the Non-Compete Period he will not assist or encourage any
other person in carrying out any activity that would be prohibited by the provisions of this
Section 6 if such activity were carried out by Executive and, in particular, Executive agrees that
he will not induce any employee of the Company to carry out any such activity; provided, however,
that the “beneficial ownership” by Executive, either individually or as a member of a “group,” as
such terms are used in Rule 13d of the General Rules and Regulations under the Exchange Act, of not
more than five percent (5%) of the voting stock of any publicly held corporation shall not be a
violation of this Agreement.

               (b) Executive agrees that, during the Term of Employment, and for a period of one year
thereafter, he will not, directly or indirectly, solicit or contact any customer or supplier of the
Company on behalf of any Named Competitor or in any way interfere with the Company’s relationship
with any customer or supplier of the Company.

               (c) Executive agrees that, during the Term of Employment, and for a period of one year
thereafter, he will not, directly or indirectly, solicit or recruit any employee of the Company for
the purpose of being employed by him or by any Named Competitor.

6

 

               (d) Executive and the Company expressly agree that the Company will or would suffer
irreparable injury if Executive were to violate any provision of this Section 6 and that the
Company would by reason of such violation be entitled to injunctive relief in a court of
appropriate jurisdiction.

               (e) If it is determined by a court of competent jurisdiction in any state that any restriction
in this Section 6 is excessive in duration or scope or is unreasonable or unenforceable under the
laws of that state, it is the intention of the parties that such restriction may be modified or
amended by the court to render it enforceable to the maximum extent permitted by the law of that
state.

     7. Taxes. All payments to be made to Executive under this Agreement will be subject to
any applicable withholding of federal, state and local income and employment taxes.

     8. Miscellaneous. This Agreement shall also be subject to the following miscellaneous
considerations:

               (a) Executive and the Company each represent and warrant to the other that he or it has the
authorization, power and right to deliver, execute, and fully perform his or its obligations under
this Agreement in accordance with its terms.

               (b) This Agreement contains a complete statement of all the arrangements between the parties
with respect to Executive’s employment by the Company, this Agreement supersedes all prior and
existing negotiations and agreements between the parties concerning Executive’s employment,
including, but not limited to, the GCO 2004 Offer Letter, and this Agreement can only be changed or
modified pursuant to a written instrument duly executed by each of the parties hereto.

               (c) If any provision of this Agreement or any portion thereof is declared invalid, illegal, or
incapable of being enforced by any court of competent jurisdiction, the remainder of such
provisions and all of the remaining provisions of this Agreement shall continue in full force and
effect.

               (d) This Agreement shall be governed by and construed in accordance with the internal laws of
the State of Delaware, except to the extent governed by federal law.

               (e) The Company may assign this Agreement to any direct or indirect subsidiary or parent of
the Company or joint venture in which the Company has an interest, or any successor (whether by
merger, consolidation, spin-off, purchase or otherwise) to all or substantially all of the stock,
assets or business of the Company or any subsidiary or parent of the Company, and this Agreement
shall be binding upon and inure to the benefit of such successors and assigns. Except as expressly
provided herein, Executive may not sell, transfer, assign, or pledge any of his rights or interests
pursuant to this Agreement.

               (f) Any rights of Executive hereunder shall be in addition to any rights Executive may
otherwise have under benefit plans, agreements, or arrangements of the Company

7

 

to which he is a party or in which he is a participant, including, but not limited to, any
Company-sponsored employee benefit plans.

               (g) For the purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given when delivered or
mailed by United States certified or registered mail, return receipt requested, postage prepaid,
addressed to the named Executive at the address contained in the Company’s records concerning the
Executive. All notices to the Company shall be directed to the attention of the Board with a copy
to the Secretary of the Company.

               (h) Section headings in this Agreement are included herein for convenience of reference only
and shall not constitute a part of this Agreement for any other purpose.

               (i) Failure to insist upon strict compliance with any of the terms, covenants, or conditions
hereof shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or
relinquishment of, or failure to insist upon strict compliance with, any right or power hereunder
at any one or more times be deemed a waiver or relinquishment of such right or power at any other
time or times.

               (j) This Agreement may be executed in several counterparts, each of which shall be deemed to
be an original but all of which together will constitute one and the same instrument.

               (k) The Company shall indemnify Executive to the fullest extent permitted by the laws of the
State of Delaware, as in effect at the time of the subject act or omission, and he will be entitled
to the protection of any insurance policies that the Company may elect to maintain generally for
the benefit of its directors and officers against all costs, charges and expenses incurred or
sustained by him in connection with any action, suit or proceeding to which he may be made a party
by reason of his being or having been a director, officer or employee of the Company or any of its
affiliates or his having served any other enterprise, plan or trust as director, officer, employee
or fiduciary at the request of the Company. The provisions of this Section 8(k) shall survive any
termination of Executive’s employment or any termination of this Agreement.

     9. Resolution of Disputes. Any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration, conducted in Phoenix, Arizona in
accordance with the rules of the American Arbitration Association governing employment disputes as
then in effect. The Company and Executive hereby agree that the arbitrator will not have the
authority to award punitive damages, damages for emotional distress or any other damages that are
not contractual in nature. Judgment may be entered on the arbitrator’s award in any court having
jurisdiction; provided, however, that the Company shall be entitled to seek a restraining order or
injunction in any court of competent jurisdiction to prevent any continuation of any violation of
the provisions of Section 6, and Executive consents that such restraining order or injunction may
be granted without the necessity of the Company’s posting any bond except to the extent otherwise
required by applicable law. The fees and

8

 

expenses of the American Arbitration Association and the arbitrator shall be borne by the
Company.

     10. Attorneys’ Fees.

               (a) Upon invoice in conformity with the Company’s customary practices, the Company shall
reimburse Executive the amount of all reasonable legal fees incurred by Executive in connection
with the negotiation of this Agreement; provided, that such expenses shall not exceed $5,000 in the
aggregate.

               (b) If any suit or action is filed by any party to enforce this Agreement or otherwise with
respect to the subject matter of this Agreement, each party shall be responsible to pay the
attorneys fees and costs incurred by such party in preparation or in prosecution or defense of such
suit or action; provided, however, that the court or adjudicator may in its sole discretion
allocate attorneys fees and costs to Executive.

* * * * * * * *

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates set forth
below, to be effective as of approval of the Board of Directors of Suntron Corporation.

	 	 	 	 	 
	EXECUTIVE:	 	SUNTRON CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	/s/ Hargopal Singh

	 	By:
	 	/s/ Jeffrey W. Goettman
	 

	 	 	 	 
	Hargopal (Paul) Singh
	 	 	 	 

9

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