January 5, 2006


To Whom It May Concern:

The purpose of this letter is to advise you that, effective January 1, 2006, the distribution agreement between Globe Motors Inc. and Avnet Electronics has been terminated.  The relationship between Globe Motors and Avnet has been a long and respected one for both Globe Motors and the Avnet group of companies for many years.  In light of the decision by Globe Motors to move forward and initiate an in-house distribution network, we would like to take this opportunity to ensure that every effort will be made between the two parties to provide an orderly transition of customer service, design, and product support. 

It is the intent of the parties to finalize the complete transition by the end of the 1st quarter of 2006.  Globe Motors recognizes that the value of the current Avnet Modification Center has been the capability to respond to your requests for quick prototyping, design, and modification support.  In addition to flexible product scheduling and inventory to support the demands of the market, we are committed to continue the level of service that you have come to expect.

The strategic decision to form a dedicated Globe Motors Modification Center will allow Globe Motors to remain competitive in an ever-changing environment and is a result of our commitment to ensure continued growth and success for our customers and Globe Motors.  Throughout the first quarter of 2006, a transition from the Avnet Modification Center in Grapevine, TX to the Globe Motors Modification Center in Dothan, AL will occur.

Should you have any questions relative to the new Modification Center, please feel free to contact your local Globe Motors Representative or your Globe Motors Regional Manager.

Derek J. Keegan
Derek J. Keegan
Vice President,
Marketing and Sales