Document:

Krung Thai Bank Public Company Ltd. Agreements

 Exhibit 10.2a 
  
       Term      Loan Agreement 
  
 Made at Krung Thai Bank Public Company Limited, Head Office 
 Date             March 31,
2004             
  
 This Agreement is made between PEMSTAR (THAILAND) LTD         Age              years, residing at
No         129/1         Moo         1         , Trok/Soi
         Road             , Tambon/Khwaeng          Banlane         
Amphoe/Khet          Bangpa-in          Province          Ayutthaya         ,PostalCode
             13160             ,Telephone,              hereinafter
referred to as the “ Borrower” on the one part and Krung Thai Bank Public Company Limited, hereinafter referred to as the “ Lender”, on the other part, Both parties agree as follows: 
  
 Clause 1.     The Lender agrees to lend and the Borrower
agrees to borrow from the Lender a loan in the amount of Baht          220,000,000.00         (        Two hundred and twenty
million baht) on which the Borrower agrees to pay interests to the Lender at the maximum rate annonced by the Lender (currently at          14.50          per cent per
annum) throughout such time until the full discharge of the debts by the Borrower whether within the term of this Agreement or after expiry of the repayment schedule hereunder, and the Borrower 
  

	 	1.1	has received the loan hereunder in full. 

  

	 	1.2	shall receive the loan in installments according to the drawdown conditions 

 prescribed in Appendix 1 attached hereto and deemed an integral part hereof 
  

	 	1.3	the drawdown shall be made within 90 days from the execution date of legal documentation 

  
 Clause 2.     The Borrower covenants to pay the debts hereunder to the Lender by 
  

	 	2.1	Making payment of the principal sum and interest in monthly installments at the amount not less than Baht              -
             each. 

  

	 	2.2	Making payment of the principal sum in              -
             month installments at the amount not less than Baht              -
             Each with interest payment made separately every month 

  

	 	2.3	Others (specify)              an equal principal repayments shall be made on a quarterly basis. The first repayment shall
fall on the date 3 months after the agreement date 

  
 The payment
shall be made within the              day of every month at the place and within the business hours of the Lender. If any payment date falls on a non-business day of the Lender, payment
shall be postponed to the next business day of the Lender. The Borrower agrees to commence installment payment of the principal sum as 

 from          2004          onwards and
payment of interests as from          April, 2004          onwards, and shall make complete payment of the debts hereunder within
         March 31, 2007          
  
 Clause 3.     The Borrower agrees to pay fees to the Lender as follows: 
  
 3.1 Management fee and/or front-end fee and/or project analysis fee at the rate of
             -              per cent of the total amount of loan. Such fee shall be payable once 
  

	 	(1)	on the date of execution of this Agreement 

  

	 	(2)	on the date of the first drawdown 

  

	 	(3)	others (specify)              -             

  
 3.2 Commitment Fee at the rate of
             -              per cent per annum of the amount of loan. 
  

	 	(1)	not drawndown by the Borrower within a period of              -
             months from the date of execution of this Agreement. Such fee shall be payable upon expiration of such drawdown period. 

  

	 	(2)	not drawndown by the Borrower in accordance with the drawdown conditions. Such fee shall be payable in every interest payment period. 

  

	 	(3)	others (specify)              -             

  

	For 	the loan which is not drawndown by the Borrower within the period of drawdown as prescribed or specified in the drawdown conditions, it shall be construed that such undrawn portion
is cancelled and no longer be drawndown by the Borrower, 

  
 3.3 Prepayment fee at the rate of- per cent of the amount of loan prepaid within              -              years from
the date of execution of this Agreement. Such fee shall be payable once within the date the Borrower prepays such obligation and debts hereunder. 
  
 3.4 Cancellation fee at the rate of              -
             per cent of the amount of loan cancelled. Such fee shall be payable once within the date of cancellation of the loan. 
  
 3.5 others ( specify)
             In a case of refinance, prepayment fee shall be at the rate of 2% per annum on the prepayment amount. The Lender shall be informed at least 7 banking business days in advance
         
  
 Clause 4.
    If, after date of execution of this Loan Agreement, the Lender announces a change in the maximum interest rate as specified in Clause I hereof, the Borrower shall allow the Lender to charge interests at the maximum interest
rate as announced as from the date such announcement comes into force until the Borrower makes full discharge of the debts, whether within the term of this Agreement or after expiry of the repayment schedule hereunder, irrespective of whether the
Borrower receives a notice of such change of interest rate from the Lender or not. 
  

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 Clause 5.     If the Borrower is in arrears with interest payment for not less than
one year, the Borrower allows the Lender to have such outstanding interests compounded with the principal sum and to continue charging interests on such compounded amounts at the maximum interest rate announced by the Lender until the full discharge
of the debts by the Borrower, irrespective of whether the Borrower receives a notice of the compound of interests from the Lender or not. 
  
 Clause 6.     Changes in Circumstances 
  
 6.1 Change in circumstance which causes the performance hereunder to become unlawful or impracticable 
  
 In case there is a change in circumstance due to promulgation of new law, or
change of law, or enforcement of law, or interpretation of law, order regulation or any requirement, or in case the government or the Bank of Thailand makes an order, or lays down any rule, or issues new regulation or requirement which causes the
provision of loan by the Lender to become unlawful or makes it impossible for the Lender to grant all or part of the loan to the Borrower, the Lender shall give a notice of such circumstance to the Borrower. When such notice is given, the Lender
shall be entitled to regard that its obligations hereunder are terminated in whole or in part. In case the Lender deems that its obligations are terminated entirely, the Borrower agrees to repay the debts under the loan facility together with
interests and any other outstanding sum to the Lender within the period of time prescribed by the Lender. In case the lender deems that its obligations are terminated in part and the remaining obligations can continue to be performed by the Lender,
the Borrower agrees to repay the debts under the loan together with interests and any other sum affected by such change in circumstance to the Lender within the period of time prescribed by the Lender, and it shall be the right of the Borrower to
request that this Agreement be deemed to be terminated in its entirety. In case the Borrower requests that this Agreement be deemed to by terminated in its entirety, the Borrower agrees to repay the outstanding debts under the loan facility together
with interests and any other outstanding sum to the Lender within the period of time prescribed by the Lender without the necessity to pay the prepayment fee to the Lender 
  
 6.2 Increase in expenses 
  
 In case there is a change in circumstance due to promulgation of new law, or change of law, or enforcement of law, or interpretation of law, order,
regulation or any requirement, or in case the government or the Bank of Thailand makes an order, or lays down any rule, or issues new regulation or requirement, including the change in condition of interbank financial market or general financial
market which requires the Lender to pay additional expenses in provision of the loan to the Borrower hereunder and/or to receive interests, fees or any other sum receivable hereunder at lower rate or lesser amount, the Borrower agrees to make extra
payment from time to time in the amount necessary for compensating for such additional expenses or for compensating for the decrease in such interests, fees or any other sum to the Lender within the period of time prescribed by the Lender. In
addition, the Lender shall be granted the right to consider adjusting the interest rate of the loan hereunder. If the Borrower is of the opinion that the additional expenses or interests fees 
  

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 or any other sum which the Borrower must pay to compensate the Lender and/or the interest rate adjusted by the Lender
would become onerous burden to the Borrower, the Borrower shall have the right to repay all the outstanding debts under the loan facility to the Lender together with interests and any other sum due to the Lender on the last date of such interest
period without the necessity to pay the prepayment fee to the Lender. 
  
 6.3 Change in interest computation basis 
  
 In case there is a change in circumstance which affects the interbank financial market or general financial market to such extent that a proper method for determination of interest rate for relevant interest period is unavailable, the
Borrower and the Lender shall make an agreement on a substitute basis for the provision of loan for use in computing interests and determining new interest period and interest payment date. Such substitute basis for the provision of loan shall be
binding on the Borrower and the Lender and become enforceable as from the commencement date of relevant interest period until such time that the change in circumstance as stated in this Clause comes to and end. If the Borrower and the Lender cannot
reach an agreement, the substitute basis for the provision of loan shall be determined by the Lender, and if the Borrower is not satisfied with such substitute basis as determined by the Lender, the Borrower shall have the right to repay all the
outstanding loan to the Lender immediately together with interests and any other sum due to the Lender on the last date of relevant interest period without the necessity to pay the prepayment fee to the Lender. 
  
 6.4 Change which affects interbank financial market. 
  
 In case the Lender is of the opinion that there is a
circumstance which affects the interbank financial market in general thereby causing the Lender to be unable to provide a facility to the Borrower, the Lender shall give a written notice of such circumstance to the Borrower. When a notice thereof is
given by the Lender to the Borrower, it shall be construed that the Lender is no longer obligated to provide a facility to the Borrower according to this Loan Agreement. In such case, the Borrower shall pay all the loan together with interests and
any other sum due to the Lender within the period of time prescribed by the Lender. 
  
 Clause 7.     If the Borrower fails to pay any debt hereunder or breaches any clause of this Agreement, it shall be deemed that the Borrower is in default of this Agreement in its entirety. Even if
the term of this Agreement has expired or this Agreement has been terminated, the Borrower shall allow the Lender to demand full and immediate repayment of the debts together with damages incurred by the Lender due to the default of the Borrower,
including expenses in the warning, claim, demand, litigation and enforcement of the repayment in full in all respects. 
  
 Clause 8.     The stipulation of time for repayment of debts under this Agreement shall be without prejudice to the right of the
Lender to terminate this Agreement or demand the Borrower to prepay the principal sum and interests in full or in part as the Lender may think fit without having to provide reasons to the Borrower 
  

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 Clause 9.     The Borrower agrees that the Lender shall have the right to delay or
suspend the provision of loan or terminate the Agreement and demand the full and immediate payment of the debts from the Borrower when there is any circumstance under which the Lender has reasonable ground to believe that the financial condition of
the Borrower would be affected to such extent that its ability to repay the debts hereunder is diminished or distinct. Such circumstance shall include the Borrower’s failure to pay the principal sum, interests, fees or any other sum to other
creditor, or the Borrower’s consent to restructure the debts with other creditor. 
  
 Clause 10. In case the Borrower and/or its affiliated entities are in default or in breach of any agreement which the Borrower and/or its affiliated entities have made with the Lender, the Borrower and the Lender
agrees that such default or breach shall be deemed to be the default or breach of all the agreements of whatever kind which the Borrower and/or its affiliated entities have made with the Lender and that all the debts which the Borrower and/or its
affiliated entities owe to the Lender shall concurrently and immediately become due and payable . 
  
 Affiliated entities mean any two or more limited public companies or companies or juristic partnerships which have relationship in the following manners:

  
 a. The shareholders or partners in the number
exceeding one half of the number of shareholders or partners in one juristic entity are shareholders or partners in the number exceeding one half of the number of shareholders or partners in another juristic entity. 
  
 b. The shareholders or partners whose shares or
contributions in one juristic entity are in excess of 50 per cent of the total capital are holding shares or making contributions in another juristic entity with value in excess of 50 per cent of the total capital. 
  
 c. A juristic entry is a shareholder or partner in another
juristic entity, directly or indirectly, in excess of 50 per cent of the total capital. 
  
 d. The persons in the number exceeding one half of the number of directors or partners who have the management authority in one juristic
entity are directors or partners who have the management authority in another juristic entity. 
  
 e. A juristic entity whose one shareholder or partner or several shareholders or partners in the aggregate is/are the majority
shareholder(s) in another juristic entity, due to direct or indirect holding of shares in excess of 25 per of the total capital. 
  
 f. A juristic entity whose shareholder or partner and/or any person can direct or control the directors or partners who have the
management authority in another juristic entity, whether directly or indirectly. 
  
 Clause 11.     As security for the performance under this Agreement, the Borrower has          details of the securities shall be specified in the
Attachment I hereto
                                        
                                        

  
 Clause 12.     The Borrower hereby
covenants and agrees not to cause the security to become depreciated or have lesser value, nor to created encumbrance on and 
  

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 do whatsoever act such as change, demolition, removal, lease or transfer, to the property which the Borrower has provided
to secure the debts under the loan facility to the Lender except with written consent of the Lender. The Borrower shall also allow the Lender’s officer or designated person to inspect and/or assess the value of the security at all times.

  
 In case the Borrower fails to pay the debts at the time
prescribed herein, the Lender shall have the right to enforce the payment of debts by selling the mortgaged or pledged property by public auction immediately as the Lender thinks fit. After the sale. The Borrower shall allow the Lender to deduct all
expenses from the amount obtained, and apply the net proceeds towards payment of interests and principal sum to the Lender respectively. If the net proceeds of the sale are not sufficient for the payment of debts, the Borrower shall allow the Lender
to enforce the payment thereof out of other properties of the Borrower until the Lender receives the full payment of the debts. 
  
 Clause 13.     The Borrower covenants to take out an insurance for the security, be it immovable or movable property which can be
mortgaged according to law to secured debts at the time of execution of this Agreement and arising hereafter, with an insurance company approved by the Lender for an insured sum not lower than the amount which the Borrower borrows from the Lender,
or not lower than the amount of outstanding debts of the Borrower with the Lender, or according to the full assessed price as the Lender may prescribe, and to designate the Lender as a sole beneficiary in the insurance policy. The Borrower shall
also pay the insurance premiums by itself until the Borrower makes a full payment of debts. If The Borrower fails to effect such an insurance, the Lender shall have the right to take out an insurance on behalf of the Borrower, and the Borrower shall
allow the Lender to add the insurance premium to the outstanding principal sum and to have it construed that the insurance premium which is added to such principal sum is the principal sum on which the Borrower is obliged to pay interest at the same
rate as prescribed in Clause 1 until the Borrower make a full payment of debts to the Lender. In addition, the original insurance policy and receipt of such insurance shall be kept by the Lender. 
  
 Clause 14.     If, upon the scheduled time of payment of
the principal sum and/or interest and/or insurance premium advanced by the Bank and/or fees and/or other expenses payable by the Borrower, the Borrower fails to pay such principal sum and/or interests and/or insurance premium advanced by the Lender
and/or fees and /or expenses to the Lender or within any period of time as the Lender thinks fit, the Borrower agrees that it shall be deemed that the Borrower has authorized the Lender to immediately deduct funds from the deposit account of the
Borrower or the deposit account which the Borrower is a joint holder for the purpose of repaying the debts and/or liability of the Borrower under the Agreement in full until the Borrower makes a full payment of debts, whether such deposit account is
savings account or other kind of account which the Borrower has with the Lender either now or hereafter and which is in the possession, custody and/or authority of the Lender irrespective of how the Lender has acquired such possession, custody
and/or authority. In this connection, the Lender shall not be obliged to give a notice of such deduction and make evidence thereof and/or any other document to the Borrower. 
  

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 Clause 15.     Expense for stamp duty affixed on this Agreement, or duty payable in
money including fee and stamp duty in the registration of security mortgage and the registration of redemption shall be borne by the Borrower solely. 
  
 Clause 16.     The Borrower agrees that all letters, correspondences, notices of the Lender which are sent to the address of the
Borrower as specified above or address as notified in writing by the Borrower, whether by hand, or registered or non-registered mail, shall be deemed to have been duly delivered to the Borrower in all respects if they are received by any person at
the address of the Borrower or are refused to accept by the Borrower or other person on behalf of the Borrower, or are undeliverable because the Borrower has changed it address without written notice of the new address to the Lender because such
address cannot be located or has been demolished 
  
 This Agreement
is made in duplicate with the same content, Each party shall retain one copy. The parties, having thoroughly read and understood the contents of this Agreement, have therefore signed their name in the presence of witnesses on the date specified
herein above. 
  
 Signed
         Laddawan Maisonti              Borrower 
  
 ( Pemstar (Thailand) Ltd. ) 
  
 Signed
                                        
     Spouse giving consent 
  
 (                        ) 
  
 Signed          Supin Hongsiripong          Lender 
  
 ( Miss Supin Hongsiripong ) 
  
 Signed          Kanitta
Tunjalearn         Witness 
  
 ( Mrs. Kanitta Tunjalearn ) 
  
 Signed
         Boonrugsa Kongrattanasomboon          Witness 
  
 ( Mrs. Boonrugsa Kongrattanasomboon ) 
  
 Signed          Kanitta Tunjalearn          Writer/typist 
  
 ( Mrs. Kanitta Tunjalearn ) 
  

 7 

 Detail of Securities 
 The Attachment of Loan Agreement dated 31 March 2004 
 The line of credit limited to Baht 220,000,000.00

 (two hundred and twenty million Baht) 
 Customer: Pemstar (Thailand) Ltd. 
  
 11. In order to secure any
indebtedness arising out of this Loan Agreement, I hereby granted these securities as follow: 
  

	 	1.	the mortgage of a piece of land and all buildings owned by Pemstar (Thailand) Ltd., located at Banlane, Bangpa – In, Ayutthaya represented by a land title deed No. 4789;

  

	 	2.	the pledge of machines and accessories, provided that such pledge shall be executed prior to the drawdown and the mortgage of such machined and accessories shall be effectuated
within six months after the date hereof; 

  

	 	3.	the insurance of (i) all buildings located at Banlane, Bangpa-In, Ayutthaya represented by a land title deed No. 4789 and (ii) all machines, provided that the sum insured shall (a)
not less than the amount of the appraisal price of such all building and machines an (b) be assigned to the Krung Thai Bank Public Company Limited as the beneficiary; 

  

	 	4.	the corporate guarantee, guarantee limits up to the full amount of this credit facility line, executed by Pemstar Singapore Pte Ltd., provided that such corporate guarantee shall be
authenticated by Notary Public; and 

  

	 	5.	the subordinated loan agreement issued by Pemstar Inc, USA, and Pemstar Netherlands Holding, BV, Netherlands to their lenders, provided that (i) each of such lender shall grant the
consent in writing to the content and format of such subordinated loan agreement and (ii) such subordinated loan agreement and written consent shall be authenticated by Notary Public. 

  

	
	Laddawan Maisonti
	( Pemstar (Thailand) Ltd.)

  

 8 

 Exhibit 10.2b 
  
 ( In case of borrowing by issuing of a promissory notes) 
  
 Undertaking of Debt Repayment Agreement 
  
 Made at Krung Thai Bank Plc.,     Head    Office 
  
 Date:    March 31, 2004    

  
 I,     PEMSTAR (THAILAND)
LTD    , Age     -    years, Race    , Nationality    Thai    Residing at
No    129/1    Moo    1    , Trok/Soi    -
Road    -    ,Tambon/Khwaeng    Banlane    Amphoe/Khet    Bangpa-in    ,
Province    Ayutthaya    , Postal Code    13160     , hereby, make this written undertaking of debt repayment in favor of Krungthai Bank Plc.,(hereinafter referred to as
“ the Bank”) that in consideration of the Bank’s approval of my loan by issuance of promissory notes with Krungthai Bank Plc.,    Head    Office, in the amount of Bant
    170,000,000.00    , (    one hundred and seventy million Baht    ), I, hereby undertake with the Bank as follows: 
  
 1. Each and every promissory note issued by me in favor of the Bank for
repayment of debt deriving from loan, shall be the promissory note with the maturity of not exceeding    90     days from the date entered into the promissory note and delivered to the Bank. When adding the
amount appeared in a promissory note or promissory noted delivered to the Bank that is/are not matured and/or matured, and /or is/are with the Bank, the sum, at any time, shall, in aggregate, not exceed the amount approved by the Bank as
aforementioned. 
  
 2. I, hereby, undertake that I will pay the
amount in full as that mentioned in the promissory note along with the interest on the maturity date of the promissory note or earlier than its maturity as the Bank deems appropriate. 
  
 3. In the event the Bank does not receive the payment under the promissory note when it matures, I agree to pay the interest
at the maximum rate in pursuant to the announcement of the Bank that may vary (the current rate is 14.50    % per annum ) of the outstanding amount from the maturity date of the promissory note until it is settled, whether or not
I am notified of the variation of the said interest by the Bank. 
  
 4. If thee promissory note deposited with the Bank is aval and/or endorsed, the Bank my, at the same time, demand from every of any other acceptors of aval or persons who so endorsed or some persons before demanding from me. In which case,
should the Bank grants a leniency or extends the duration for repayment to those persons, with or without notifying me, it shall deem that I so agree with each and every of leniency or extension of time granted by the Bank. 
  
 5. I will continue to issue promissory notes to the Bank one after another
and should I wish to cease borrowing by issuance of promissory notes under this agreement, I shall prior notify the Bank in writing with the period of not less than 15 days. The Bank may refuse to accept any one or several of my promissory notes
delivered to the Bank without clarification and/or may reduce the facility or completely cancel the approval of the loan by issuance of my promissory notes at any time as the Bank deems appropriate without notifying me in advance. 
  

 1 

 6. I agree to deem that my letter to the Bank in relation to acceptance of the loan by issuance of
promissory notes is the supporting document of the promissory note in each of application of withdrawal of the advance and it also forms an integral part of this undertaking of debt repayment agreement 
  
 7. The securities under this agreement are as follows: 
  
 The secured properties are:     details of securities as
attached here to 
  
 The individual guarantees are: 

 
 In witness whereof, I hereby, affix my hand on the date, month, and year
first above written. 
  
 Sign    Supin
Hongsiripong    The Bank 
  
 ( Miss Supin
Hongsiripong ) 
  
 Sign    Laddawan
Maisonti    The Borrower 
  
 ( Pemstar
(Thailand) Ltd ) 
  
 Sign    Kanitta
Tunjalearn    Witness 
  
 ( Mrs. Kanitta
Tunjalearn ) 
  
 Sign    Boonrungsa
Kongrattanasomboon    Witness 
  
 ( Mrs.
Boonrungsa Kongrattanasomboon ) 
  

 2 

 Exhibit 10.2c 
  
 (Import and export financing) 
  
 Performance of Obligations Agreement 
  
 This Agreement is made on March 31, 2004  
  
 By and between 
  
 Krungthai Bank Plc., a limited public company, incorporated and registered in Thailand under the Public Company Act B.E. 2535, the registration no. is Bor
Mor Jor. 335. The principal office is situated at no. 35 Sukhumvit Road, Kwaeng Klongtoeynua, Khet Wattana, Bangkok Metropolis, represented by Ms. Supin Hongsiripong, the authorized person, hereinafter referred to as the “Bank” of
one part and 
  
 Pemstar (Thailand) Ltd. the office/house
no. 129/1, Moo 1, Kwaeng/Tambon Banlane, Khet/Amphoe BangPa-in, Ayutthaya Province, the tax payer I.D. card No. is 3181069125 (hereinafter referred to as the “the Promisor”) of the other part.

  
 Whereas Krungthai Bank Plc. granted the Promisor the import
and export financing, that is to say, the import financing are facilities for letters of credit and trusts receipt (hereinafter referred to as the “import credit”) and the export financing are packing credit, foreign bills under L/C
purchased/discount, foreign bills for collection purchased/discount, (hereinafter referred to as the “Export Financing”). In applying such aforementioned facility, the Promisor is to prepare documents in accordance with terms and
conditions in applying certain category of credits in pursuant to regulations and formalities of the Bank (hereinafter referred to as “terms and conditions in applying the facility”). 
  
 Both parties hereby entered into the agreement under conditions as following:

  
 1. The objectives of the agreement 
  
 The Promisor allows the Bank to take money in the amount the Promisor
received from the Bank under the import financing to repay the cost of goods and/or the services on behalf of the Promisor. It further agrees to take the money in the amount received from the Bank under the export financing in each instance to apply
in accordance with the objective in receiving various categories of the credits. In this regard, the Promisor is to furnish the Bank documents in relation to this export such as bill of exchange, invoice, bill of lading, insurance policy (if any)
and other relevant documents (hereinafter referred to as the “export document”) whether by means of transmitting of documents and information through electronic mean or submitting of the original documents so that the Bank may further
collect or perform other acts in accordance with the procedures in applying of each category of export financing on behalf of the Promisor within the due date of payment. 
  
 2. Facility and practices in applying the import facility 
  
 The Promisor agrees to comply with regulations and practices of the Bank in
relation to the application for the import facility. Particulars of the facility and practices in applying the import facility are as follows: 
  

 1 

  ̈ A credit facility in relation to an application for opening of a letter of credit (L/C), the Bank shall grant the facility by issuing letters of credits in the total amount of -
                    -                    
                                        
(                            -           
                                        
                                        
             ) (hereinafter referred to as the “credit facility for the application for opening of L/C”). In applying the facility by opening an L/C, the Promisor shall
prior prepare an application for irrevocable documentary letter of credit for the Bank at each of the application of such credit facility. In addition, the Promisor agrees to bind to and comply with conditions and terms set forth in the application
for irrevocable documentary letter of credit in all respects and it shall deem said conditions and terms as an integral part of this Agreement. 
  
  ̈ A credit facility in relation to an application
for opening a letter of credit and a trust receipt (L/C + T/R), the Bank grants the Promisor the credit facility for opening of             letters of credit or trusts receipt in the total
amount of (             ) (hereinafter referred to as “L/C and T/R credit facility”) In applying this L/C and T/R credit facility the Promisor shall furnish the Bank with an
application for irrevocable documentary letter of credit and enter into a trust receipt agreement in accordance with the regulations and the practices for each application of the L/C and T/R credit facility. In addition, the Promisor agrees to bind
to and comply with conditions and terms set forth in the application for irrevocable documentary letter of credit and the trust receipt agreement in all respects and it shall deem said conditions and terms as an integral part of this Agreement.

  
 In the event the Bank approves the Promisor to apply the
credit facility from T/R under the conditions that in applying the facility from T/R, the Promisor shall submit to the Bank documentation in supporting the use of such credit facility. That is to say, in the event the documentation in using the
T/R’s facility is the inward bills for collection, the Promisor shall submit the inward bills of collection together with entering into the trust receipt agreement with the Bank or in case of the open account, the Promisor shall submit the
documentation in applying for the use of T/R facility which is comprised of the copy of invoice and/or the bill of lading and/or the shipping order together with entering into the trust receipt agreement with the Bank. In addition, the Promisor
agrees to bind to and comply with conditions and terms set forth in the trust receipt agreement in all respects and it shall deem said conditions and terms as an integral part of this Agreement. 
  
 3. Facility and practices in applying the packing credit 

 
 3.1 Packing credit 
  
 The Promisor agrees to comply with the conditions in applying the packing
credit as follows: 
  
 (1) The Bank grants the Promisor the
facility in the total amount of     624,000,000.00     (    six hundred and twenty four million baht    ) hereinafter referred to as the “Packing Credit”). In
using such packing credit, the Promisor shall take the money received from selling/discounting promissory notes under the export financing facility granted by the Bank in each instance to be expended in exporting of goods to overseas. The Promisor
shall make an application for selling /discounting the promissory note (hereinafter referred to as the 
  

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 “application”) and shall issue a promissory note indicating the amount as it received from the
Bank in each instance to the Bank at each time the application to use the packing credit is made. 
  

	 	(2)	The Promisor agrees to pay to the Bank the interest or the discount (as the case may be) in accordance with the interest rate or the cost of discount set forth in each of the
application and the promissory note. The Promisor agrees to pay the interest or the cost of discount based on the following criteria: 

  

	 	a.	In case of making payment by the interest, the Promisor shall pay the principal with the interest on the maturity date as specified in the promissory note in the amount set
forth in the application and the promissory issued by the Promisor to the Bank. In which case the Promisor agrees to pay to the Bank the principal sum as specified in the promissory note on the maturity date of the promissory note as prescribed in
Clause (3). 

  

	 	b.	In case of making payment by the discount, the Promisor allows the Bank to deduct the discount in accordance with the rate of discount set forth in the application and the
promissory note from the Promisor in the full amount at the same time on the date the Promisor sells by discount each of promissory note to the Bank. The Promisor agrees to pay the Bank the principal sum in accordance with the promissory note on the
maturity date of the promissory note as prescribed in (3). 

  
 Where the interest rates imposed by the Bank on the Promisor are to be referred to MOR or MLR or MRR or LIBOR or SIBOR, the Promisor agrees and accepts that MOR or MLR or MRR or LIBOR or SIBOR may vary in accordance
with the Bank’s annoucement regarding the lending interest rate and discount to be proclaimed from time to time whether or not the Promisor receives the notification on the variation of such interest rates from the Bank. 
  
 (3) Where the Promisor submits the export documents to the Bank and the Bank
already collects the money in accordance with the export documents, the Promisor allows the Bank to apply the collected money to deduct the Promisor’s debt in the promissory note until the amount reaches the sum set forth in each of the
promissory note whether or not such promissory note is mature. 
  
 (4) The Promisor agrees to indemnify the Bank a penalty in the following circumstances: 
  

	a.	In the event the Promisor does not export goods or export goods but not in the sufficient quantity which is not consistent with each issued promissory note within the duration in
the letter of credit or purchase and sale agreement or the order to purchase goods or in the event such promissory note is issued in accordance with the warehouse receipt and the Promisor does not export or export but not in the full quantity within
the maturity date of each of the promissory note, the Promisor agrees to pay damages to the Bank at the punitive rate as set forth in each application in the amount prescribed in the promissory note or the outstanding amount owing the Bank in the
promissory note. 

  

 3 

 b. In the event the Promisor export goods but does not deliver the export documents to the Bank as set
forth in Clause 1 or does not inward the foreign currency, the Promisor agrees to pay the interest at the rate indicated in the promissory note. In addition, should the Promisor be in default of payment in accordance with the maturity set for in the
promissory note, the Promisor agrees to pay the interest to the Bank at the maximum rate. Moreover, it agrees to compensate the Bank the commission in lieu of exchange at the rate stipulated in each of the application and in the amount set forth in
each promissory note or the outstanding amount owing the Bank in the promissory note. 
  
 3.2 Foreign bill under L/C purchased/discount (FPL) 
  
 The Bank grants Promisor foreign bills under L/C purchased/discount in the facility of
            -            
(            -            ) in total (hereinafter referred to as “FPL”). In this regard the Promisor shall prepare a
request for negotiation/discount of export bills drawn under letter of credit to apply FPL in the forms, regulations and practices of the Bank for the Bank for each and every instance. In addition, the Promisor agrees to bind to and comply with
conditions and terms set forth in such FPL in all respects and it shall deem said conditions and terms as an integral part of this Agreement. 
  
 3.3 Foreign bills for collection purchased/discount (FPC) 
  
 The Bank grants the Promisor foreign bills for collection purchased/discount in the facility of
            -            (            -    
        ) in total (hereinafter referred to as “FPC”).”). In this regard the Promisor shall prepare a request for collection/instruction for negotiation/discount for export bills in order to
apply for the use of FPC in the forms, regulations and practices of the Bank for the Bank for each and every application of FPC. In addition, the Promisor agrees to bind to and comply with conditions and terms set forth in such FPC in all respects
and it shall deem said conditions and terms as an integral part of this Agreement. 
  
 4. In the event there is an original import and/or export facility 
  
 The Promisor and the Bank jointly agree that the import and export facility previously granted to the Promisor prior to the date of execution of this
Agreement is a part of the import and/or export facility set forth in Clause 2 and Clause 3 of the Agreement hereof. In addition, it shall deem that all documents relevant to the application to use the import and/or export facility made by the
Promisor to the Bank also form an integral part of this Agreement. 
  
 5. Consent to debit the money from the deposit account 
  
 Where the Promisor is to pay the money under the terms and conditions in applying the credit facility and/or interests and/or fees and/or penalties, and/or other expenses incurred in connection with this Agreement but the Promisor fail to
pay the Bank or fail to pay within the time prescribed by the Bank, the Promisor allows the Bank to at all time debit the money from the deposit account of the Promisor in order to repay the Promisor’s debts under the terms and conditions in
applying all or part of the credit facility and/or this Agreement until the all debts are fully settled regardless of such account is the current account or any other category of account the Promisor currently established with the Bank and/or to be
established in the future and whether or not the Bank shall posses, maintain 
  

 4 

 and/or be authorized to render an order in connection with such deposit account by whatsoever means. In which case, the
Bank shall notify the Promisor of such debit after such debit is made from the Promisor’s deposit account by the Bank. Moreover, the Promisor agrees to deem the covenants herein contained as the Promisor’s consent in allowing the Bank to
debit the money from the Promisor’s account in order to pay the Bank under the terms and conditions in applying the credit facility and/or interests and/or fees and/or penalties, and/or other expenses incurred in connection with this Agreement
without making a letter of consent for the Bank to debit the money from the deposit account. 
  
 6. In case of the default of the agreement and the consequences of the default of the agreement 
  
 In the event, the Promisor is in default to repay debt under the terms and conditions in applying the credit facility and/or does not comply with any one of the
provisions herein contained, it shall deem that the Promisor is in default of all of the Agreement and the Promisor allows the Bank to perform as follows: 
  
 6.1 All categories of debts of the Promisor incurred to the Bank shall become due and payable at the same time regardless of their maturity or without notice, in which
case the Promisor allows the Bank to forth with demand all debts. 
  
 6.2 In the
event the import and/or export facility is made in foreign currency and the Promisor does not repay on the due date of repayment under the terms and conditions in applying the credit facility, the Promisor allows the Bank to convert the debt
denominated in foreign currency into debts in Baht currency on the due date of repayment under the terms and conditions in applying the credit facility, in which case the rate of exchange determined by the Bank in selling foreign currency applicable
to the general customers on such due date of repayment shall apply. 
  
 Should the
incident as prescribed in Clause 7 occur, the Promisor allows the Bank to forthwith convert the debt denominated in foreign currency into debt in Bath currency without waiting for the maturity under the terms and conditions in applying the credit
facility, in which case the rate of exchange determined by the Bank in selling foreign currency applicable to the general customers on such due date of termination of the Agreement and demanding the debt under Clause 7 shall apply. 
  
 In addition, where the due date of payment under the terms and conditions in applying the
credit facility or the due date of termination of the Agreement falls on the Bank’s holiday, in which case the rate of exchange determined by the Bank in selling foreign currency applicable to the general customers on succeeding bank’s
business day shall apply. 
  
 Moreover, other than exercising such aforementioned
right of the Bank to convert the currency, the Promisor also agrees to pay the Bank the interest at the maximum rate prescribed in Clause 6.4. 
  
 6.3 The Promisor agrees to indemnify the Bank damages to be receivable due to the Promisor’s default including the expenses in connection to the claim, demand, legal
action and enforcement of repayment of debt in the full amount in all respects without further notice. 
  

 5 

 6.4 Should the Promisor be in default of repayment of debt in the amount indicated in the terms and
conditions in applying the credit facility, the Promissor agrees and consents to pay the Bank the interest from such outstanding amount at the maximum rate (the present rate is 14.50 % per annum) as from the due date of payment under the
terms and conditions in applying the credit facility until the debt is fully settled by the Promisor. Such maximum rate may increase or decrease in accordance with the Bank’s announcement regarding the lending interest rate and discount to be
proclaimed by the Bank from time to time whether or not the Promisor shall receive the notification of such variation from the Bank. 
  
 6.5 Should the Promisor do not pay the interest less than one year, the Promisor allows the Bank to bring forward such outstanding interest to compound
with the principal and collect the interest from such compound amount at the maximum interest rate proclaimed by the Bank as prescribed in the above Clause 6.4 until the Promisor shall repay debt in full whether or not the Promisor shall receive the
notification of such compound interest from the Bank. 
  
 6.6 The
Promisor allows the Bank to forthwith enforce repayment of debt from the security as indicated in Clause 11 whether or not the debts under the terms and conditions in applying the credit facility are mature. 
  
 7. In the event there is an adverse material affect on the financial
status of the Promisor 
  
 When there is any one of the
incidents makes the Bank believes that such incident may affect the financial status of the Promisor to the extent that the Promisor’s capability in repayment of debt decreases or suspends, the Promisor allows the Bank to delay or suspend
granting of the credit or terminate the Agreement or forthwith demand all Promisor’s debts incurred to the Bank. 
  
 8. Governing law 
  
 In the event the Promisor conduct financial transaction in the credit facility granted by the Bank to the Promisor under the conditions and covenants of
this Agreement and there is a transmission of information via electronic mean to the Bank, the Promisor agrees and accepts that such transaction and documents transmitted by the Promisor to the Bank via electronic mean are subject to the practices
in the Act on Electronic Transaction B.E. 2544 including the ministerial regulations issued by virtue of the Act on Electronic Transaction B.E. 2544 and its further amendments to be made in the future and are also subject to the practices of
Supplements to UCP 500 for electronics presentation (eUCP version 1.0) and its further amendments to be made in the future. In such regards, the Promisor shall certify and confirm correctness and completeness of documents and signature of the
authorized person in the aforementioned documents transmitted to the Bank in all respects. 
  
 9. Termination of the agreement 
  
 9.1 Should the Promisor fail to repay debt under the terms and conditions in applying the credit facility, the Bank, by serving a notice in writing to the Promisor, is entitled to forthwith terminate this Agreement. 
  

 6 

 9.2 Should the Promisor be in default of any other conditions besides those stipulated in the above
Clause 9.1, the Promisor agrees to duly give a remedy to such error or fault within 30 days from the date the Bank notifies the Promisor of such error or fault. Should the Promisor fail to give a remedy to the fault within time prescribed, the Bank,
by serving a notice in writing to the Promisor, is entitled to forthwith terminate the Agreement. 
  
 Provided that in course of termination of this Agreement, should there be any duty or liability to be performed by the Promisor under the terms and
conditions of the Agreement hereof, the Promisor is still bound to be liable and conducts in compliance with such terms and conditions until the Promisor is discharged of all such liability. 
  
 10. Notices 
  
 All documents, letters and notices of the Bank sent the aforementioned
address of the Promisor or the address to which the Promisor notifies the Bank of the change, sent by person or by registered mail or unregistered mail, if any person at the Promisor’s address so receives, or the Promisor does not so accept or
no person receives it on behalf of the Promisor or it cannot be delivered because the Promisor relocates its address without expressly notifying the Bank in writing of its new address or the address give cannot be found or it is dismantled in any
one of those cases, the Promisor agrees to deem that such document, letter and notice are duly delivered to the Promisor. 
  
 11. Security 
  
 As the security against performance in compliance with the Agreement hereof, the Promisor agrees to place the following security with the Bank:

  

	 	(1)	Securities: 

  

	 	6.	the mortgage of a piece of land and all buildings owned by Pemstar (Thailand) Ltd., located at Banlane, Bangpa – In, Ayutthaya represented by a land title deed No. 4789;

  

	 	7.	the pledge of machines and accessories, provided that such pledge shall be executed prior to the drawdown and the mortgage of such machined and accessories shall be effectuated
within six months after the date hereof; 

  

	 	8.	the insurance of (i) all buildings located at Banlane, Bangpa-In, Ayutthaya represented by a land title deed No. 4789 and (ii) all machines, provided that the sum insured shall
(a) not less than the amount of the appraisal price of such all building and machines an (b) be assigned to the Krung Thai Bank Public Company Limited as the beneficiary;  

  

	 	9.	the corporate guarantee, guarantee limits up to the full amount of this credit facility line, executed by Pemstar Singapore Pte Ltd., provided that such corporate guarantee shall
be authenticated by Notary Public; and 

  

 7 

	 	10.	the subordinated loan agreement issued by Pemstar Inc, USA, and Pemstar Netherlands Holding, BV, Netherlands to their lenders, provided that (i) each of such lender shall grant
the consent in writing to the content and format of such subordinated loan agreement and (ii) such subordinated loan agreement and written consent shall be authenticated by Notary Public. 

  

	 	(2)	Personal guarantee:
                    -                    
                     

  
 In witness whereof both parties have hereunto set their hands in the presence of witnesses on the date, month and year first above written. 
  

							
	 Sign
	 	     Laddawan Maisonti

	  	the Promisor
	 	 	    Pemstar (Thailand) Ltd.	  	 
			
	Sign	 	     Supin Hongsiripong

	  	Authorized person
			
	 	 	Represented by	  	     Miss Supin Hongsiripong

			
	Title:	 	     First VP and Manager

	  	 
			
	Sign	 	     Miss Supin Hongsiripong

	  	Bank
			
	Sign	 	     Boonrugsa Kongrattanasomboon

	  	Witness
			
	Sign	 	     Kanitta Tunjalearn

	  	Writer/Typist

  

 8 

 Exhibit 10.2d 
  
 (Translation) 
  
 Loan Agreement from Overdraw 
  
 This Agreement is made at Krung Thai Bank Plc., Head Office Office 
  
 Date: March 31,2004  
  
 I, Pemstar (Thaialnd) Ltd. , Age     -     years, Race
    -     ,Nationality     _Thai     , residing at no.     129/1    , Moo
    1    , Trok/Soi     -    , Road     -    , Tambon/Khwaeng
    Banlane     Amphoe/Khet     BangPa-in     Province _    Ayutthaya    , Post Code
    13160    , telephone no.     -    , hereinafter referred to as “the Borrower” hereby makes this Agreement for Krung Thai Bank Plc., Head
Office, hereinafter referred to as “the Lender” to be the evidence that: 
  
 1. The Borrower applies for a loan in pursuant to methods, and normal practices in relation to overdraw granted by the bank to borrowers in the amount of Baht 30,000,000.00 ( thirty million baht ). It is
agreed that the Borrower shall draw the money from the Lender in the amount and time required by the Borrower and as considered appropriate and approved by the Lender. All withdrawal slips or payment orders of the Borrower in forms of checks or any
instruments shall be deemed as evidences of this Borrower’s obligations and also form an integral part of this Agreement. The money to be drawn by the Borrower in accordance with such withdrawal slips or payment orders shall be the loan herein
as well. Should there be outstanding debt of the Borrower from overdraw incur to the Lender prior to the date of execution of this Agreement, the Borrower allows the Lender to consider such overdrawn amounts as the overdrawn herein in all respects.

  
 2. The Borrower agrees to pay the interest from the balance
appeared in the Borrower’s current account at MOR rate per annum (the current rate is 5.75% per annum). The interest shall be daily calculated and to be payable on monthly basis on the closing date of Borrower’s account every
month. If it is apparent that the balance of the debt exceeds the facility contained herein, the Borrower allows the Lender to impose the maximum interest rate collectable by the Lender in pursuant to the Lender’s announcement from the
exceeding amount. 
  
 After the date of execution of the Agreement
hereof, should there be any variation of the interest rate proclaimed by the Lender or the Banking Association, the Bank of Thailand, organizations or any institutions that makes the maximum interest rate collectable by the Lender or the commercial
bank from customers higher than that stipulated herein, the Borrower allows the Lender to be authorized to forthwith adjust the interest herein at the higher rate as the Lender deems appropriate without prior notice to the Borrower. In such regards,
it shall deem that the Borrower agrees with such adjustment of the interest from the date prescribed by the Lender in each and every occasion. 
  
 3. Lending and borrowing in accordance with this Agreement shall be subject to the banking practices, hence, should the Borrower be in default of payment
of the 
  

 1 

 interest at the rate and time set forth in the said Clause 2, whether or not the Lender so demands, the Borrower allows
the Lender to forthwith compound the outstanding interest with the principal at each instance of unsettled interest occurs. In which case, such interest compounded with the principal shall become the principal from which the Borrower shall pay the
interest at the same interest rate and the due date of payment shall be the same as that stipulated in Clause 2. 
  
 4. The Borrower shall repay debt herein in the gradually decrease order until the full amount is duly settled within March 31, 2005, provided that
the aforesaid shall not deprive the Lender’s right to demand the Borrower to settle all or part prior to the aforesaid due date as the Lender deems appropriate and without clarification of the reason. 
  
 In addition, whether or not the Borrower settles all debts within such time,
should the Borrower still withdraws money from the Lender subsequent to the expiration of this Agreement, it shall deem that such Overdraw Agreement is indefinitely renewed. The Borrower promises that the money overdrawn by the Borrower after such
time shall be the obligations under this Agreement in all respects, in which case the Lender may so demand at any time. In the event the Lender demands for payment from the Borrower, the Borrower shall forthwith settle such debts as demanded.

  
 5. Should the Borrower fail to perform its obligation or be in
default of any one of the provisions hereof despite of the expiration of the Agreement or the termination of the Agreement, the Borrower agrees to pay the interest at the interest rate imposes on a debtor who is in default of repayment or conditions
of the agreement in pursuant to the Lender’s announcement (the current rate is 14.50 % per annum) or at the maximum interest rate collectable in accordance with the Lender’s announcement from the date the Borrower is in default or
in breach of the Agreement until the debt is duly settled. Moreover, the Borrower shall indemnify all damages to be receivable by the Lender due to the Borrower’s default including the expenses incurred in connection with serving a notice,
claim, demand, legal action and enforce repayment of debt in the full amount in all respects. 
  
 After the date of execution of the Agreement hereof, at any time, should there be any variation of the interest rate prescribed in the preceding paragraph proclaimed by the Lender, the Borrower allows the Lenders to
forthwith impose the interest at the maximum interest rate as announced as from the date such announcement comes into full force without a notice to the Borrower. 
  
 6. As a security in compliance with this Agreement the Borrower hereby provides the securities as attached hereto

  
 _______________________________________________________________________________________________________ 
  
 _______________________________________________________________________________________________________ 
  
 _______________________________________________________________________________________________________ 
  
 7. Regarding the security under Clause 6, the Borrower and the Lender agreed
that if such property is kept in the Borrower’s premise or the premise of the agent or the depositary of the Borrower or the Borrower or the agent or the depositary, the Borrower shall still be the custodian of such property. It shall deem that
such maintenance is made for and on behalf of the Lender in all respects. The Borrower or the agent or the depositary shall be considered as the depositary of the Lender only. Such custody cannot be relocated 
  

 2 

 without the Lender’s written notice, in which case, should any damage occurs to such property, the Borrower agrees
to indemnify the Lender in all respects and in this regard, the Borrower shall not impose a maintenance fee or a remuneration on the Lender. 
  
 8. In the event the Borrower is in default of repayment of the debt at the time prescribed herein, the Lender is entitled to forthwith enforce the
performance of obligation from the mortgaged or pledged property by selling by auction as the Lender deems appropriate. After such sale, the Borrower allows the Lender to deduct all expenses from the proceeds from sale, and to apply the net proceeds
towards the repayment of interest and principal respectively to the Lender. Should the proceeds from the sale be insufficient to repay debt, the Borrower agrees to pay the deficit amount in full. 
  
 9. All communications, demands, notices or letters sent by whatsoever means
to the Borrower, if they are sent to the address of the Borrower first above written herein, it deems that they are served to the Borrower and the Borrower duly receives them, except in the case where the Borrower expressly notifies the Lender in
writing of the relocation of its domiciles where it can be reached and sends such notice to the Lender by post and the registered mail with a return slip prior to serving such demand or notice. 
  
 The Borrower, having thoroughly read and understood the contents hereof, has hereunto set his
hand in the presence of witnesses. 
  

					
	Sign	  	    Laddawan Maisonti

	 	The Borrower
	 	  	    (Pemstar (Thailand) Ltd.)
			
	Sign	  	  

	 	Wife/husband who gives a consent
	 	  	    (                                )	 	 
			
	Sign	  	    Kanitta Tunjalearn

	 	Witness
	 	  	    (Mrs. Kanitta Tunjalearn)
			
	Sign	  	    Boonrugsa Kongrattanasomboon

	 	Witness
	 	  	    (Mrs. Boonrugsa Kongrattanasomboon)

  

 3PEMSTAR Inc. Senior Management Variable Compensation Plan

 Exhibit 10.3 
  
 

 
  
 SENIOR MANAGEMENT

 VARIABLE COMPENSATION PLAN 
 Fiscal Year 2005 Plan Document 

 Table of Contents 
  

					
	 Section

	  	Page

	1.	  	General Purpose of the Plan	  	3
			
	2.	  	Definitions	  	3
			
	3.	  	Administration	  	4
			
	4.	  	Eligibility and Participation	  	4
			
	5.	  	Establishing Plan Objectives	  	5
			
	6.	  	Award Opportunity	  	5
			
	7.	  	Determining the Payout	  	6
			
	8.	  	Relationship to Other Compensation Plans	  	6
			
	9.	  	Extraordinary Events	  	6
			
	10.	  	Termination	  	6
			
	11.	  	Employment Rights	  	7
		
	Attachment A             Payout Matrix	  	8

  

 2 

 PEMSTAR Inc. 
 Management Variable Compensation Plan 
  
 Section 1. General Purpose of the Plan 
  
 The purpose of
this plan is to focus efforts on achievement of strategic, financial, business, and other performance objectives which are critical to the success of PEMSTAR; to provide participants the opportunity to earn significant awards, commensurate with
performance; and to more closely couple total compensation (salary plus variable) to the financial results of the company, leading to the creation of value for the Company’s shareholders. No employment contract is implied by participation in
the Plan. The Plan does not change the “at will” nature of each Participant’s employment relationship with PEMSTAR. 
  
 Section 2. Definitions 
  
 Definitions as used in the Plan are: 
  

	 	a.	“Affiliate” means any legal entity owned or controlled by the Company. 

  

	 	b.	“Board” means the Board of Directors of the Company. 

  

	 	c.	“Compensation Committee” means the Board committee responsible for approval of the PEMSTAR Management Variable Compensation Plan. 

  

	 	d.	“CEO” means the Chief Executive Officer duly elected by the Board. 

  

	 	e.	“Company” means PEMSTAR Inc., a corporation organized under the laws of the State of Minnesota. 

  

	 	f.	“Employee” means any full-time employee of the Company or it’s Affiliates, whether or not an officer or member of the Board, but excluding any temporary
employee and any person serving the Company only in the capacity of a member of the Board. 

  

	 	g.	“Participant” means an Employee who is eligible to participate in the Plan. 

  

	 	h.	“Plan” means the PEMSTAR Management Variable Compensation Plan. 

  

	 	i.	“Plan Year” means the applicable fiscal year of the company. 

  

 3 

 Section 3. Administration 
  
 The overall plan objectives and performance goals are established and approved by the Compensation Committee of the Board of Directors
before the end of the first quarter of the fiscal year. 
  
 The objectives for
participants below the direct reports to the CEO require Executive Committee Approval to: 
  

	 	•	Integrate objectives into the Company operating plan 

	 	•	Guard against conflicting objectives 

	 	•	Help to assure consistency in degree of difficulty 

  
 The CEO has the final approval for plan objectives over all participants other than himself. 
  
 Section 4. Eligibility and Participation 
  
 The positions and employees eligible to participate in the Plan shall be selected at the sole discretion of the Compensation Committee and
Executive Officers. 
  
 The positions identified for participation in the Plan are
considered “Qualifying Positions”. An employee must be in a Qualifying Position by March 31st in order to be eligible for the fiscal year Plan beginning the preceding April 1st. Other requirements include: 
  

	 	a)	Participants must also work at least 1,000 hours in a Qualifying Position in the Plan Year and be employed at the time of the Plan payout to be eligible for a payout.

  

	 	b)	If services in the Qualifying Position commence after the adoption of the Plan, the participant may be eligible to receive a payout that is proportionately adjusted based on the
period of actual service in the Qualifying Position during the Plan Year. 

  

	 	c)	Participants resigning or terminating (regardless of cause) before the date of the Plan’s payout are not eligible for a payout. 

  

	 	d)	Participants who are otherwise eligible for a payout under the Plan, but who work less than full time during the Plan Year (e.g., due to a personal leave, but not due to illness),
would earn a proportionately reduced payout. “Full time” employment for the purposes of this Plan is defined as an employee who averages 40 or more hours per week (in limited circumstances full time regular employees averaging 30 or more
hours per week may be eligible) and who maintains continuous regular employment status. 

  

	 	e)	Employees eligible for other variable compensation (i.e. commissions) are not eligible to participate in the Plan. 

  
 The CEO must approve any waivers to the eligibility and participation rules listed above.

  

 4 

 Section 5. Establishing Plan Objectives and Performance Measures 
  
 The major emphasis of the Plan objectives is achieving financial results. The financial
objectives for the Plan Year include: 
  

	 	•	Return On Invested Capital (ROIC) 

  

	 	•	Gross Profit 

  

	 	•	Total Gross Profit 

  

	 	•	Manufacturing 

  

	 	•	Development 

  

	 	•	Automation and Test 

  

	 	•	Revenue 

  
 The objectives are established and approved for the following Groups: 
  
 Executive Management 
  

	 	•	Section 16 Officers 

  

	 	•	Regional Executive Management 

  

	 	•	Industry Executive Management 

  
 Senior Management (Director Level and Above) 
  

	 	•	Site Management 

  

	 	•	Functional Management 

  

	 	•	Other Management 

  
 Achieving the ROIC target is a minimum threshold for earning an award under the plan. Additional, individualized targets may also apply. For any payout to occur the corporate ROIC target must first be met.

  
 Each group will have specific goals at the corporate level
tailored to their area of responsibility. Each goal will have an assigned weighting and the sum of the relative weightings of the objectives must equal 100% (See Attachment A for the Fiscal-Year 2005 payout matrix). 
  
 Section 6. Award Opportunities 
  
 The Management Variable Compensation (MVC) target payment for Participants is expressed as a
percentage of the available bonus pool. The percentage is determined at the beginning of the Plan Year and is based on scope of responsibility and profit impact of the position. Incentive payments vary above and below the target percent based on the
financial results in comparison to the established objectives. 
  
 Each year the
Company will define the following Plan Components: 
  

	 	1.	Performance Period 

  

	 	2.	Participants eligible to receive an Award 

  

	 	3.	Performance Measures for each participant or groups of participants 

  

	 	4.	Relative weight accorded each Performance Measure 

  

	 	5.	Target Performance Levels for each Performance Measure 

  

	 	6.	Threshold Award and Target Award for each Participant 

  

 5 

 Section 7. Determining the Payout 
  
 Payouts are based on five factors: 1) Scope of responsibility (job level and business area responsibility), 2) Degree to which objectives
are met, 3) MVC target percentage, 4) Percentage of time worked during the Plan Year, and 5) number of eligible Participants in the Plan. To be eligible for any payout, the employee must be, at a minimum, meeting the performance expectations for
their job. 
  
 Each year the Corporation will establish a minimum award threshold
or “hurdle rate” that represents the level of performance below which no award is to be paid. Payouts will be made in cash within 90 days of the end of the Plan Year (the “Payout Date”), expected to be on or before June 30.

  
 The Committee may, in it’s sole discretion provide Participants the
opportunity to elect to defer the payment of any Bonus under the Plan in a manner to be determined. 
  
 Section 8. Relationship to Company Sponsored Retirement Savings Plan (401K) 
  
 Payout to a U.S. based participant in the Management Variable Compensation Plan is excluded from total compensation for the purpose of calculating the
Company’s contribution to the employee’s 401K plan. 
  
 Payout to
a U.S. based participant in the Management Variable Compensation Plan is excluded from total compensation for the purpose of calculating the Employee’s contribution to the employee’s 401K plan. 
  
 Section 9. Extraordinary Events 
  
 The Compensation Committee, in its discretion, may adjust the basis upon which performance
is measured to reflect the effect of significant changes that include, but are not limited to, unbudgeted acquisitions/divestitures, unusual or extraordinary accounting items, or significant, unplanned changes in the economic or regulatory
environment. 
  
 Section 10. Termination 
  
 If a Participant terminates employment with the Company, either voluntarily or
involuntarily, before the Payout Date, such individual will not be entitled to any payout under the Plan for the applicable Plan Year unless termination is due to the Participant’s death, disability, or retirement. If a Participant terminates
due to retirement, total and permanent disability, or death, the Compensation Committee has the discretion to pay a prorated award based upon the percentage of the year worked. 
  

 6 

 Section 11. Employment Rights. 
  
 To the extent any provision of the Plan conflicts with any provision of a written employment or other agreement between a Participant and
the Company, the provisions of the employment agreement shall control. 
  
 Neither
the establishment of the Plan nor the provision for or payment of any amounts hereunder, nor any action of the Company, the Board of Directors of the Company or the Committee in respect of the Plan, shall be held or construed to confer upon any
person any legal right to receive, or any interest in, a payout or any other benefit under the Plan. 
  
 The employment relationship of each participant is “at will” and may be terminated at any time and for any reason by the Company or the Participant with or without cause. Neither the Plan nor any action
taken hereunder shall be construed as giving any Participant or other person any right to continue to be employed by or perform services for the Company or any Affiliate. 
  

 7 

 Attachment A. Payout Matrix 
  
 Payout Plan Name 
  

																				
	 	  	ROIC

	 	 	Sales

	 	 	Mfg GM

	 	 	PD GM

	 	 	Eng GM

	 	 	Tot GM

	 
	 ROIC
	  	100	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 RST
	  	50	%	 	 	40	%	 	 	 	 	 	 	 	 	 	 	10	%
	 RSP
	  	50	%	 	 	10	%	 	 	 	 	40	%	 	 	 	 	 	 
	 RSM
	  	50	%	 	 	10	%	 	40	%	 	 	 	 	 	 	 	 	 
	 RSE
	  	50	%	 	 	10	%	 	 	 	 	 	 	 	10	%	 	 	 
	 RT
	  	80	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20	%
							
	 	  	ROIC

	 	 	Sales

	 	 	Mfg GM

	 	 	PD GM

	 	 	Eng GM

	 	 	Tot GM

	 
	 FY05 Hurdle
 (100% Payout)
	  	5	%	 	$	740	M	 	8.8	%	 	23.7	%	 	14.4	%	 	10.0	%

  
 Payout Plan applies
to Executive Management and Senior Management categories 
  

			
	 ROIC plan
	 	-     CEO, COO, CFO and EVP Sales
	 RST plan 
	 	-     Industry Executives/Senior Management
	 RSP plan
	 	-     Product Development Executives/Senior Management
	 RSM plan
	 	-     Manufacturing Operations Executives/Senior Management
	 RSE plan
	 	-     Automation and Test Engineering Executives/Senior Management
	 RT plan
	 	-     Support Executives/Senior Management

  
  

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]