Document:

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                                                                     Exhibit 4.2

                          [TRANSLATED FROM THE HEBREW]

                                 ELSCINT LIMITED

                                 ("THE COMPANY")

      2003 INCENTIVE PLAN TO EMPLOYEES AND OFFICERS - CAPITAL GAINS COURSE

THE PLAN IS INTENDED FOR THE ALLOTMENT OF UP TO 116,000 NON-NEGOTIABLE OPTIONS
OF THE COMPANY, EXERCISABLE INTO 116,000 ORDINARY SHARES PAR VALUE NIS 0.05 PER
ORDINARY SHARE OF THE COMPANY, TO EMPLOYEES AND OFFICERS OF THE COMPANY AND/OR
COMPANIES OF THE COMPANY GROUP, IN ACCORDANCE WITH THE CONDITIONS OF SECTION 102
OF THE INCOME TAX ORDINANCE (NEW VERSION), 5721-1961 - CAPITAL GAINS TAX COURSE,
ALL IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET OUT BELOW IN THIS PLAN.

1.       INTRODUCTION AND DEFINITIONS

         1.1        Every expression in this plan referring to the singular
                    shall also apply in respect of the plural and vice versa and
                    every expression referring to one sex shall also apply in
                    respect of the other sex, unless the content otherwise
                    requires.

         1.2        In this plan the undermentioned expressions shall have the
                    meanings set out against them, unless the content otherwise
                    requires:

                    "OPTION" means a non-negotiable option, exercisable into one
                    ordinary shares of NIS 0.05 n.v. of the Company in
                    accordance with the provisions of this plan;

                    "THE ORDINANCE" and/or "THE INCOME TAX ORDINANCE" means the
                    Income Tax Ordinance (New Version), 5721-1961, as amended
                    from time to time, including regulations, rules, orders and
                    any other provisions that have been or are in future issued
                    by virtue of it;

                    "THE COMPANY GROUP" means the Company, the Company's
                    subsidiaries, Europe Israel (MMS) Ltd and companies under
                    the control of Europe Israel (MMS) Ltd;

                    "THE SECTION 102 RULES" or "THE RULES" means the Income Tax
                    (Tax Concessions on the Allotment of Shares to Employees)
                    Rules, 5763-2003;

                    "SHARE" means an ordinary share of NIS 0.05 n.v. of the
                    Company;

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                    "OFFEREE" means an employee, director or officer of a
                    company of the Company group, provided that he is not a
                    controlling shareholder of the Company (as that term is
                    defined in section 102 of the Ordinance), to whom options
                    have been granted in accordance with the provisions of this
                    plan;

                    "PLAN" or "THE REMUNERATION PLAN" means this plan, as
                    amended from time to time;

                    "THE EXERCISE SHARES" means as defined in clause 11.1 below.

2.       CAPITAL GAINS TAX COURSE

         2.1        This plan shall be subject to, construed in accordance with
                    and fulfil all the requirements of section 102 of the
                    Ordinance and every written approval from the Israeli tax
                    authorities.

         2.2        This plan and the allotments pursuant hereto are subject to
                    the provisions of section 102 of the Ordinance - capital
                    gains tax course, as in force from time to time, and the
                    Rules by virtue thereof, and the offerees are obligated to
                    act in accordance with the provisions of the Ordinance and
                    the Rules as aforesaid.

         2.3        Options pursuant to this plan shall be allotted to an
                    employee remuneration trust company (hereinafter referred to
                    as "the trustee"), as trustee for each offeree. The terms
                    and conditions of the trust are set out in the trust
                    agreement that is to be made between the Company and the
                    trustee (hereinafter referred to as "trust agreement"), as
                    appended hereto.

         2.4        So that the offeree will pay the taxes fixed for the capital
                    gains tax course, the offeree may not transfer or sell the
                    exercise shares from the trustee until the expiration of 24
                    months from the end of tax year in which the options were
                    allotted to the trustee for the offeree or such other period
                    as approved by the Israeli tax authorities (hereinafter
                    referred to as "the lock-up period").

         2.5        In the event of a distribution of bonus shares and/or an
                    offer of rights by virtue of the options and/or the exercise
                    shares (hereinafter referred to as "the additional rights"),
                    all the additional rights shall be allotted to the trustee
                    for the offerees and be held by the trustee until the end of
                    the lock-up period of the options in respect of which the
                    rights were allotted, and the conditions of the tax course
                    shall apply to those additional rights.

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         2.6        In the event that the offeree transfers or sells the
                    exercise shares from the trustee before the end of the
                    lock-up period (hereinafter referred to as "the breach"),
                    the offeree shall pay all the taxes that are payable due to
                    the breach in accordance with the provisions of section 7 of
                    the Rules and shall indemnify the Company for any expense
                    incurred by the Company by reason of the breach, including
                    payment of the employer's share to the National Insurance
                    Institute due to the breach.

         2.7        For the avoidance of doubt, the provisions of section 102 of
                    the Ordinance augment every other provision laid down in the
                    plan and the provisions of section 102 of the Ordinance do
                    not derogate from the provisions of this plan, including
                    provisions concerning the qualification period, as defined
                    in clause 7 below and/or any other provision that limits the
                    offeree's ability to exercise the options or transfer the
                    shares from the trustee.

3.       QUANTITY OF OPTIONS TO BE ALLOTTED IN ACCORDANCE WITH THE PLAN

         The total quantity of options to be allotted pursuant to this plan will
         stand at 116,000 non-negotiable options of the Company, exercisable
         into 116,000 ordinary shares of NIS 0.05 n.v. each of the Company. The
         quantity of shares that result from the options' exercise will be
         subject to adjustments, as set out in clause 4 below.

4.       ADJUSTMENTS

         4.1        In the event that the Company distributes a cash dividend,
                    the date determining the distribution whereof being after
                    the date of allotting the options to the trustee for an
                    offeree but before the options have been exercised or
                    lapsed, the number of exercise shares that the offeree will
                    be entitled to receive on exercising an option will increase
                    by the quantity computed in accordance with the following
                    formula:

                                            A x B
                                            -----
                                              C

                    A - the original number of exercise shares to which the
                        offeree is entitled in respect of any exercise of
                        options pursuant to the plan;

                    B - the dividend per share paid by the Company in US
                        dollars;

                    C - the closing price of the share on the New York Stock
                        Exchange in US dollars at the time of allotting the
                        exercise shares in respect of the options that have been
                        exercised.

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         4.2        In the event that the Company distributes bonus shares the
                    date determining the distribution whereof being after the
                    date of allotting the options to the trustee for the offeree
                    but before the options have been exercised or lapsed, the
                    number of shares to which the offeree will be entitled on
                    exercising the options shall be increased by the number of
                    shares to which the offeree would have been entitled as
                    bonus shares had he exercised the options prior to the date
                    determining the distribution of bonus shares. The exercise
                    price of each option shall not alter as a result of the
                    increased number of exercise shares to which the offeree is
                    entitled due to the bonus share distribution.

         4.3        If the Company's shareholders are offered, by way of rights,
                    rights for the purchase of any securities, the Company shall
                    act so that the rights are also offered on the same terms
                    and conditions, mutatis mutandis, to the holders of options
                    that have not yet been exercised or lapsed, as though the
                    holders of those options had exercised their options
                    immediately prior to the date determining the right to
                    participate in the said rights issue. The quantity of
                    exercise shares shall not increase as a result of the said
                    rights issue.

         4.4        In the event that the Company's share capital is split or
                    consolidated or in the case of any corporate capital
                    occurrence of essentially similar character, the Company
                    shall make the changes and adjustments necessary in order to
                    avoid diluting or increasing the rights of an offeree in the
                    context of the plan in relation to the number and class of
                    exercise shares as regards the options that have not yet
                    been exercised by the offeree and/or the exercise price of
                    each option.

         4.5        In the event of a merger, spin-off or other structural
                    change, options that have been allotted pursuant to this
                    plan shall be exchanged for or converted into another option
                    of the Company after such structural change, in the absolute
                    discretion of the Company's board of directors.

5.       PLAN'S MANAGEMENT

         The Company's board of directors has full discretion in the management
         of the plan, making resolutions in connection with the plan,
         interpreting it and making changes to it, as it deems fit, including
         changing the exercise price of all or any of the options, subject
         always to the provisions of the law. The Company's board of directors
         need not treat all the offerees equally.

6.       ALLOTMENT OF OPTIONS

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         6.1        Any allotment of options pursuant to the plan will only be
                    made after fulfilment of all the undermentioned conditions:

                    (a)        30 days have expired since the date on which the
                               application for approval of the plan was
                               submitted to the Israeli tax authorities in
                               accordance with the provisions of section 102 of
                               the Ordinance;

                    (b)        the requisite approvals for the allotment in
                               accordance with the plan have been given by the
                               Company's competent organs in accordance with the
                               law.

         6.2        The option allotment date shall be the date on which the
                    Company has allotted options in the trustee's name for each
                    offeree in accordance with the provisions of this plan.

         6.3        The options that are allotted to the trustee for the
                    offerees pursuant to this plan will be allotted without
                    consideration.

         6.4        The Company's board of directors shall fix the exercise
                    price for each option that is allotted pursuant to this plan
                    (hereinafter referred to as "the exercise price"). For the
                    avoidance of doubt, the exercise price need not be the same
                    for all the offerees.

         6.5        The options that are allotted pursuant to this plan are not
                    transferable to the offeree and/or any third party, save for
                    transmission by virtue of a will or by operation of law, and
                    in such event the provisions of section 102 of the Ordinance
                    and the Rules shall apply to the offeree's heirs and/or
                    transferees.

7.       QUALIFICATION PERIOD

         7.1        The Company's board of directors or a committee on its
                    behalf shall determine the times for maturity of the
                    entitlement to exercise options that are allotted to the
                    trustee for each offeree pursuant to this plan (hereinafter
                    referred to as "the qualification period"). For the
                    avoidance of doubt, the entitlement maturity times might be
                    at intervals or at once in respect of all the options that
                    are allotted for the offeree, all in the absolute discretion
                    of the Company's board of directors or its committee as
                    aforesaid, subject to the law. After all the qualification
                    periods applicable to the offeree have ended, the offeree
                    shall be entitled to exercise all the options that have been
                    allotted to the trustee for him, subject always to the terms
                    and conditions of this plan.

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         7.2        The offeree's entitlement to exercise the options in
                    accordance with the qualification period fixed for him as
                    provided in clause 7.1 above is conditional upon the
                    offeree's continued employment by or office in a company of
                    the Company group, all in accordance with the provisions of
                    clause 12 below.

8.       OPTION EXERCISE

         8.1        Subject to the provisions of this plan, the offeree may
                    exercise all or any of the options by sending written
                    exercise notice signed by the offeree to the registered
                    office of the Company and to the trustee, inter alia
                    including the offeree's name and identity number and the
                    number of options that the offeree wishes to exercise
                    (hereinafter referred to as "the exercise notice"). The
                    exercise notice shall include an amount in cash equal to the
                    result of multiplying (i) the number of options that the
                    offeree wishes to exercise, as specified in the exercise
                    notice, by (ii) the exercise price.

         8.2        Within three days of receiving the signed exercise notice
                    and the total exercise price being paid to the Company in
                    respect of the options specified in the exercise notice, the
                    Company shall allot the exercise shares to the trustee
                    and/or the offeree, subject to the terms and conditions of
                    this plan.

         8.3        Options are not exercisable for parts of shares. In the
                    event that as a result of the options' exercise, the offeree
                    is entitled to receive fractions of shares, the number of
                    shares being allotted shall be rounded to the nearest whole
                    number.

         8.4        An offeree cannot exercise options at a total exercise price
                    of less than $ 500, unless he exercises the remainder of the
                    options that have been granted to the offeree that have
                    vested.

9.       OPTION TERM

         Unless otherwise determined by the Company's board of directors, all
         the options that have been allotted to the trustee for an offeree
         pursuant to this plan but not been exercised shall lapse and be void at
         5:00 P.M, Israel time, on the expiration of five years from the date of
         their allotment, unless they have lapsed prior thereto in accordance
         with the provisions of clause 10 below (hereinafter referred to as "the
         option term").

10.      OPTIONS' LAPSE

         10.1       The options allotted pursuant to this plan will lapse in
                    each of the following cases:

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                    (a)        options that have been exercised will lapse on
                               the date of allotment of the exercise shares in
                               respect of them;

                    (b)        options will lapse and not be exercisable at the
                               end of the option term;

                    (c)        options, the offeree's entitlement to exercise
                               which has been cancelled in accordance with
                               clause 12 below, will lapse and not vest that
                               offeree with any right.

         10.2       In the event that an option that has been granted in
                    accordance with the provisions of this plan lapses in
                    accordance with clause 10.1 above (save for the lapse of an
                    option as a result of its exercise into shares), the option
                    that has lapsed will revert to the Company's reserve of
                    options and the Company may again grant the option in the
                    future to offerees in accordance with the provisions of this
                    plan.

11.      EXERCISE SHARES

         11.1       The shares that result from the exercise of any options
                    pursuant to this plan (hereinafter referred to as "the
                    exercise shares") will rank equally in all respects with the
                    Company's shares immediately on their allotment and will be
                    entitled to any dividend or other bonus, the date
                    determining the right to receive which is on or after the
                    date of allotment.

         11.2       In the event that the offeree is entitled to receive rights
                    and/or bonus shares and/or any other right vested in an
                    offeree by virtue of the options and/or the exercise shares
                    (hereinafter referred to as "the rights") and at the time
                    determining the distribution of the rights, the options
                    and/or the exercise shares were held by the trustee, the
                    rights shall be transferred to the trustee which shall
                    deduct tax at source in accordance with the law, if and
                    insofar as charged, and the provisions of clause 2.5 above
                    shall apply to any such distribution and/or allotment.

         11.3       In the event that the Company distributes a dividend in cash
                    and at the date determining the distribution of the dividend
                    the trustee holds exercise shares for any of the offerees,
                    the Company shall transfer the dividends to the trustee in
                    respect of the exercise shares that are held by the trustee
                    as aforesaid for each offeree, the trustee shall withold tax
                    in accordance with the law, if and insofar as required, and
                    the trustee shall then transfer the dividends (net of tax)
                    to the offeree.

12.      TERMINATION OF EMPLOYMENT OR OFFICE

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         12.1       Save for the exceptions mentioned in clauses 12.2 and 12.3
                    below, if before the end of the qualification period:

                    (a)        the labour relationship between an offeree and
                               the company by which he is employed on the date
                               of the plan comes to an end at the initiative of
                               the offeree, except in the event that there is a
                               deterioration in the terms of his employment or
                               the seniority of his position; or

                    (b)        an offeree who serves as a company director stops
                               serving as a company director of his own
                               initiative or in the event that the office of an
                               external director comes to an end in accordance
                               with the law;

                    the offeree's entitlement to options, his entitlement to
                    receive which had not yet matured as at that time, shall
                    lapse. The offeree shall be entitled to options, the
                    qualification period in respect of which had matured when
                    his employment or office came to an end, as the case may be,
                    and the said options shall be subject to the provisions of
                    this plan.

         12.2       Notwithstanding as provided in clause 12.1 above, in the
                    event of:

                    (a)        the offeree's complete incapacity, as defined
                               below; or

                    (b)        the offeree's death;

                    the offeree, or his heirs in the case of death, shall be
                    entitled to exercise all the options that have been allotted
                    to the trustee for the offeree immediately after occurrence
                    of the event mentioned in sub-clause (a) or (b) above,
                    regardless of the completion or non-completion of the
                    qualification period applicable to the offeree, subject to
                    the provisions of section 102 of the Ordinance in relation
                    to the capital gains tax course and the Rules, the
                    qualification period, as provided in clause 7 above, and the
                    other provisions of this plan.

                    For the purpose of this clause 12.2 "complete incapacity"
                    shall be construed as a stable physical and/or mental
                    condition that lasts for at least six months, which is
                    caused as a result of an illness or accident and precludes
                    the offeree from any engagement in a profession and/or
                    occupation consistent with his previous expertise,
                    experience and standard of education.

         12.3       Notwithstanding as provided in clauses 12.1 and 12.2 above,
                    if before the end of the qualification period the labour
                    relationship between an

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                    offeree and the company by which he is employed on the date
                    of the plan comes to an end at the initiative of the
                    employer company in circumstances that do not entitle the
                    offeree to severance pay in accordance with the provisions
                    of law or in the event that an offeree who serves as a
                    company director stops serving as a director of a company of
                    the Company group at the initiative of the company of the
                    Company group in circumstances in which limitations to the
                    service of the director apply pursuant to the provisions of
                    law, as provided in sections 226(a) and 227 of the Companies
                    Law, 5759-1999, the offeree's entitlement to options will
                    lapse, whether or not his entitlement to receive them has
                    then matured.

         12.4       Should the offeree go to work for another company of the
                    Company group, for the purpose hereof his term of employment
                    with the other company as aforesaid shall be treated as a
                    term of employment with the company by which he was employed
                    on the date of this plan, subject always to obtaining
                    appropriate approvals from the tax authorities, if and
                    insofar as necessary.

         12.5       For the purpose of this clause 12, pensionable retirement
                    pursuant to the provisions of law or contract shall not be
                    treated as terminating the labour relationship, subject to
                    obtaining appropriate approvals from the tax authorities, if
                    and insofar as necessary.

13.      TAXES AND EXPENSES

         13.1       All the legal tax implications (other than stamp duty in
                    respect of the allotment of the exercise shares, if and
                    insofar as charged) resulting from the allotment and/or
                    designation and/or exercise and/or holding of the options
                    and/or the sale of the exercise shares (or any other
                    security allotted pursuant to the plan) by or for an
                    offeree, shall be paid by the offeree. The offeree shall
                    indemnify the company of the Company group and/or the
                    trustee and relieve them of any liability for any such tax
                    payment and/or fine and/or interest and/or linkage as
                    aforesaid.

         13.2       At any time payment is claimed from the offeree and/or a
                    company of the Company group and/or the trustee by deducting
                    tax at source in connection with the options that have been
                    allotted to the trustee for the offeree and/or the exercise
                    shares, such company of the Company group and/or the
                    trustee, as the case may be, may require of the offeree an
                    amount sufficient to cover all the tax that needs to be
                    deducted at source as aforesaid. In the event that shares or
                    any other property other than money are transferred further
                    to the exercise of options as aforesaid to a company of the
                    Company group and/or the trustee, the Company and/or the
                    trustee shall be entitled to require the

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                    offeree to transfer a sum of money sufficient to comply with
                    any requirement for tax to be deducted at source and if that
                    amount is not transferred on time, the said company and/or
                    the trustee shall be entitled to hold or set off (subject to
                    the law) the shares or any other property as aforesaid until
                    the said payment is remitted by the offeree.

         13.3       Before the tax charged as provided in section 7 of the Rules
                    has been paid, the options or the exercise shares may not be
                    transferred, assigned, pledged, attached or otherwise
                    voluntarily charged and no power of attorney or instrument
                    of transfer shall be granted in respect of them, whether
                    with immediate or future effect, save for transmission by
                    virtue of a will or by operation of law; should the options
                    or exercise shares be transmitted by virtue of a will or by
                    operation of law as aforesaid, the provisions of section 102
                    of the Ordinance and the provisions of the Rules shall apply
                    to the offeree's heirs or transferees.

         13.4       Expenses incurred in respect of the management and
                    implementation of this plan, including the payment of stamp
                    duty in respect of the allotment of the exercise shares, if
                    and insofar as charged, shall be paid by the Company.

14.      LIMITATIONS TO THE OPTIONS' EXERCISE BY VIRTUE OF THE LAW IN THE USA

         Notwithstanding as provided anywhere in this plan, an offeree may not
         exercise options that have been allotted to the trustee for him in
         accordance with the plan so long as a registration document has not
         been filed to list the exercise shares, that will result from
         exercising the options as aforesaid, for trading on the New York Stock
         Exchange.

15.      PERIOD DURING WHICH THE SHARES ARE HELD ON TRUST

         The exercise shares and the additional rights allotted by the Company
         to the trustee shall be held by the trustee for the benefit of the
         offeree for a period of not more than 10 years from the end of the
         option term.

16.      ABSENCE OF OTHERS' RIGHTS TO OPTIONS

         Subject to the provisions of the plan, no person other than the offeree
         shall have any rights in respect of the options that have been allotted
         to the trustee for an offeree pursuant to the plan.

17.      PRESERVATION OF AUTHORISED CAPITAL

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         The Company undertakes at all times to preserve a quantity of shares in
         its authorised capital for the exercise of options that have been
         allotted pursuant to this plan.

18.      GOVERNING LAW AND JURISDICTION

         This plan and all the documents ancillary hereto that have been given
         or signed by a company of the Company group in connection with this
         plan shall be construed in accordance with the laws of the State of
         Israel and be subject thereto. Jurisdiction in all respects relating to
         this plan and all the documents ancillary hereto as aforesaid shall be
         vested solely in the relevant courts of Tel Aviv-Jaffa.

                                      * * *

                                       11<PAGE>

                                                                   EXHIBIT 10.19

                 EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

      THIS EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Amendment") is
entered into as of the 25Th day of June, 2004, by and between LASALLE BANK
NATIONAL ASSOCIATION, a national banking association (the "Bank"), and SMT
UNLIMITED L.P., an Illinois limited partnership (the "Borrower").

                              W I T N E S S E T H:

      WHEREAS, Bank and Borrower entered into that certain Loan and Security
Agreement dated as of August 25, 1999, as amended by that certain Amendment to
Loan and Security Agreement dated as of December 17, 1999, that certain Second
Amendment to Loan and Security Agreement dated as of September 8, 2000, that
certain Third Amendment to Loan and Security Agreement dated as of October 26,
2000, that certain Fourth Amendment to Loan and Security Agreement dated as of
February 16, 2001, that certain Fifth Amendment to Loan and Security Agreement
dated as of July 10, 2002, that certain Sixth Amendment to Loan and Security
Agreement dated as of February 27, 2003 and that certain Seventh Amendment to
Loan and Security Agreement dated as of July 9, 2003 (collectively, the
"Agreement"), and now desire to further amend such Agreement to, among other
things, (i) renew the Revolving Credit Commitment, (ii) include certain amounts
receivable of Solectron (as defined below) as Accounts Receivable under the
Revolving Loan Borrowing Base and (iii) amend certain financial covenants.

      NOW, THEREFORE, for and in consideration of the premises and mutual
agreements herein contained and for the purposes of setting forth the terms and
conditions of this Amendment, the parties, intending to be bound, hereby agree
as follows:

      1.    Incorporation of the Agreement. All capitalized terms which are not
defined hereunder shall have the same meanings as set forth in the Agreement,
and the Agreement, to the extent not inconsistent with this Amendment, is
incorporated herein by this reference as though the same were set forth in its
entirety. To the extent any terms and provisions of the Agreement are
inconsistent with the amendments set forth in Paragraph 2 below, such terms and
provisions shall be deemed superseded hereby. Except as specifically set forth
herein, the Agreement shall remain in full force and effect and its provisions
shall be binding on the parties hereto.

      2.    Amendment of the Agreement. The Agreement is hereby amended as
follows:

            (a)   The definition of the terms "Solectron" and "Solectron
Eligible Accounts Receivable" are hereby added to the Agreement to read in their
entirety as follows:

            "Solectron" means [Solectron], a company organized under the laws of
            Malaysia.

            "Selectron Eligible Accounts Receivable" means an Account Receivable
            generated by Solectron which otherwise satisfies all of the terms
            and conditions for being classified as an Eligible Account
            Receivable, with the exception of subsection (ix) contained in such
            definition of Eligible Account Receivable. For

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            purposes of such determination, any references to the Borrower
            contained in the definition of Eligible Account Receivable shall be
            deemed to refer to Solectron.

            (b)   The definition of the terms "Maturity Date", "Revolving Loan
Borrowing Base," "Revolving Note" and "SigmaTron Guaranty" are hereby amended
and restated to read as follows:

            "Maturity Date" means July 31, 2005.

            "Revolving Loan Borrowing Base" means, as at any date of
            determination thereof, an amount equal to the lesser of (i) the
            amount then available under the Revolving Credit Commitment and (ii)
            an amount equal to the sum of (A) eighty-five percent (85%) of the
            net amount of Eligible Accounts Receivable outstanding at such date;
            (B) fifty percent (50%) of Eligible Inventory at such date and (C)
            fifty percent (50%) of the net amount of Solectron Eligible Accounts
            Receivable outstanding at such date; provided, however, that (x) the
            aggregate amount of advances for Eligible Inventory shall not exceed
            One Million Five Hundred Thousand Dollars ($1,500,000) at any time
            and (y) the aggregate amount of advances for Solectron Eligible
            Accounts Receivable shall not exceed Five Hundred Thousand Dollars
            ($500,000) at any time.

            "Revolving Note" means, that certain Substitute Revolving Note dated
            as of June 25th, 2004 in the maximum principal amount of THREE
            MILLION DOLLARS ($3,000,000), as the same may be amended, modified
            or restated from time to time, and together with any renewals
            thereof or exchanges or substitutes therefor.

            "SigmaTron Guaranty" means that certain Guaranty dated as of August
            25, 1999 made by SigmaTron in favor of Bank, as amended by that
            certain Reaffirmation of and Amendment to Guaranty dated as of
            December 17, 1999, that certain Second Reaffirmation of and
            Amendment to Guaranty dated as of September 8, 2000, that certain
            Third Reaffirmation of and Amendment to Guaranty dated as of October
            26, 2000, that certain Fourth Reaffirmation of and Amendment to
            Guaranty dated as of February 16, 2001, that certain Fifth
            Reaffirmation of and Amendment to Guaranty dated as of July 10,
            2002, that certain Sixth Reaffirmation of and Amendment to Guaranty
            dated as of February 27, 2003, that certain Seventh Reaffirmation of
            and Amendment to Guaranty dated as of July 9, 2003 and that certain
            Eighth Reaffirmation of and Amendment to Guaranty dated as of June
            25th, 2004, as further amended, modified or restated from time to
            time.

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            (c)   Paragraph 11.2(f)(i) is hereby amended and restated to read as
follows:

            Maintain minimum Pre-Tax Income of at least the following amounts as
            calculated for the periods set forth below:

<TABLE>
<CAPTION>
                  Period                                           Amount
                  ------                                           ------
<S>                                                               <C>
May 1, 2004 through July 31, 2004                                 $200,000
May 1, 2004 through October 31, 2004                              $500,000
May 1, 2004 through January 31, 2005                              $700,000
May 1, 2004 through April 30, 2005 and                            $900,000
each trailing twelve months period ended thereafter
measured as of the end of each fiscal quarter of
Borrower
</TABLE>

            (d)   Paragraph 11.2(f)(ii) is hereby amended and restated to read
as follows:

            Maintain Tangible Net Worth, at all times, of at least the following
            amounts for the periods set forth below:

<TABLE>
<CAPTION>
                    Period                                         Amount
                    ------                                         ------
<S>                                                             <C>
July 31, 2004                                                   $2,200,000
October 31, 2005 and at all times thereafter                    $2,400,000
</TABLE>

            (e)   A new Paragraph 11.2(h) is hereby added to the Agreement to
read in its entirety as follows:

            (h) Compliance with Federal Laws. Borrower shall (a) ensure, and
            cause each Subsidiary to ensure, that no person who owns a
            controlling interest in or otherwise controls Borrower or any
            Subsidiary is or shall be listed on the Specially Designated
            Nationals and Blocked Person List or other similar lists maintained
            by the Office of Foreign Assets Control ("OFAC"), the Department of
            the Treasury or included in any Executive Orders, (b) not use or
            permit the use of the proceeds of the Loans to violate any of the
            foreign asset control regulations of OFAC or any enabling statute or
            Executive Order relating thereto, and (c) comply, and cause each
            Subsidiary to comply, with all applicable Bank Secrecy Act ("BSA")
            laws and regulations, as amended. As required by federal law and
            Lender's policies and practices, Borrower shall promptly cooperate
            with Lender's requests to obtain, verify and record certain customer
            identification information and documentation in connection with
            opening or maintaining accounts or establishing or continuing to
            provide services.

      3.    Representations and Warranties. The representations and warranties
set forth in Paragraph 11.1 and all covenants set forth in Paragraphs 11.2 and
11.3 of the Agreement shall be deemed remade and affirmed as of the date hereof
by Borrower, except that any and all

                                     - 3 -
<PAGE>

references to the Agreement in such representations, warranties and covenants
shall be deemed to include this Amendment.

      4.    Closing Conditions. Prior to entering into this Amendment, Bank
shall have received the following documents, each in form and substance
satisfactory to it:

            (a)   Substitute Revolving Note executed by Borrower;

            (b)   Eighth Reaffirmation of and Amendment to Guaranty executed by
SigmaTron;

            (c)   Seventh Reaffirmation of and Amendment to Subordination
Agreement with D.S. Patel;

            (d)   Seventh Reaffirmation of and Amendment to Subordination
Agreement with SigmaTron;

            (e)   Resolutions of the General Partner of Borrower approving this
Amendment; and

            (f)   Such other documents, certificates and opinions as Bank shall
request.

      5.    Fees and Expenses. Borrower shall pay or reimburse Bank for all
costs, fees, and expenses incurred by Bank, or for which Bank becomes obligated,
in connection with the negotiation, preparation, and closing of this Amendment,
together with all attorneys' fees, search fees and taxes payable in connection
with this Amendment.

      6.    Effectuation. The amendments to the Agreement contemplated by this
Amendment shall be deemed effective immediately upon the full execution of this
Amendment and without any further action required by the parties hereto. There
are no conditions precedent or subsequent to the effectiveness of this
Amendment.

      7.    Counterparts. This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                     - 4 -
<PAGE>

                      (SIGNATURE PAGE TO EIGHTH AMENDMENT)

      IN WITNESS WHEREOF, the parties hereto have duly executed this Eighth
Amendment as of the date first above written.

                                  SMT UNLIMITED L.P., an Illinois limited
                                  partnership

                                  By: SMT Unlimited, Inc., its General Partner

                                     By: /s/ Gary R. Fairhead
                                        ----------------------------------------
                                     Its: Vice President

      Accepted as of the 25th day of June, 2004, at Bank's principal place of
business in the City of Chicago, State of Illinois.

                                  LASALLE BANK NATIONAL ASSOCIATION

                                  By: /s/ Sara A. H. Huizinga
                                      ------------------------------------------
                                  Its: Assistant Vice President

                                     - 5 -

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