EXHIBIT 10.1.23

 

FIRST WAIVER AND CONSENT UNDER THE SECOND AMENDED AND

RESTATED CREDIT AND GUARANTEE AGREEMENT

 

FIRST WAIVER AND CONSENT, dated April 12, 2005 (the “Agreement”), to and under
the Second Amended and Restated Credit and Guarantee Agreement, dated as of June
1, 2004 (as heretofore amended, supplemented or otherwise modified, the “Credit
Agreement”), among SMTC Corporation (“Holdings”), HTM Holdings, Inc. (the
“Borrower”), SMTC Manufacturing Corporation of Canada (“SMTC-Canada”; together
with the U.S. Borrower, the “Credit Parties”), the several banks and other
financial institutions or entities from time to time parties thereto (the
“Lenders”), Lehman Brothers Inc., as advisor, lead arranger and book manager,
The Bank of Nova Scotia, as syndication agent, Lehman Commercial Paper Inc., as
general administrative agent (in such capacity, the “General Administrative
Agent”), Lehman Commercial Paper Inc., as collateral monitoring agent, and
General Electric Capital Corporation, as documentation agent.

 

WITNESSETH:

 

WHEREAS, Holdings and the Borrowers requested that the Lenders agree to waive
certain of the provisions of the Credit Agreement upon the terms and subject to
the conditions set forth below; and

 

WHEREAS, the Required Lenders have consented to the requested waivers in the
manner set forth below;

 

NOW, THEREFORE, in consideration of the premises and the material covenants
herein contained, the parties hereto hereby agree as follows:

 

1. Defined Terms. Defined terms used and not otherwise defined in this Agreement
shall have the meanings given to them in the Credit Agreement.

 

2. Waiver of Defaults or Events of Default. (a) The Lenders hereby waive, for
the period from the Effective Date (as defined below) through April 15, 2005,
the Defaults and Events of Default arising by reason of (a) the failure of
Holdings and the Borrowers to comply with the provisions of Section 10.1(a) of
the Credit Agreement for any period prior to the Effective Date (as defined
below), (b) any representation and warranty made by any Borrower, in connection
with any extension of credit under the Credit Agreement prior to the Effective
Date, to the effect that no Default or Event of Default had occurred by reason
of the failure of Holdings and the Borrowers to comply with the provisions of
Section 10.1(a) of the Credit Agreement or (c) any failure of Holdings or any
Borrower to give notice under the Credit Agreement of the failure of Holdings
and the Borrowers to comply with the provisions of Section 10.1(a) of the Credit
Agreement.

 

(b) No waiver of this Agreement, the Credit Agreement or the other Loan
Documents shall be binding unless executed in writing by the party bound
thereby. No waiver of any provision of this Agreement shall constitute a waiver
of any other provision nor shall any waiver or any provision of this Agreement
constitute a continuing waiver unless otherwise expressly provided.

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3. Effectiveness. This Agreement shall become effective on the date of
satisfaction of the following conditions precedent (the “Effective Date”):

 

  (a) The General Administrative Agent shall have received counterparts of this
Agreement, duly executed and delivered by Holdings and each of the Borrowers;

 

  (b) The General Administrative Agent shall have received executed Lender
Consent Letters, substantially in the form of Exhibit A hereto (“Lender Consent
Letters”), from Lenders constituting the Required Lenders;

 

  (c) The General Administrative Agent shall have received an executed
Acknowledgment and Consent in the form set forth at the end of this Agreement,
from each Loan Party other than the Borrowers;

 

  (d) All corporate and other proceedings, and all documents, instruments and
other legal matters in connection with the transactions contemplated by this
Agreement shall be satisfactory in form and substance to the General
Administrative Agent; and

 

  (e) The Lenders and the General Administrative Agent shall have received all
fees required to be paid, and all expenses for which invoices have been
presented, on or before the Effective Date.

 

4. Representations and Warranties. (a) After giving effect to the waiver
contained herein, on the Effective Date, Holdings and each of the Borrowers
hereby confirms, reaffirms and restates the representations and warranties set
forth in Section 8 of the Credit Agreement, except to the extent such
representations and warranties specifically relate to an earlier date, in which
case such representations and warranties shall be true and correct in all
material respects as of such earlier date; provided that each reference in such
Section 8 to “this Agreement” shall be deemed to be a reference both to this
Agreement and to the Credit Agreement as amended and modified by this Agreement.

 

  (b) Each of the Borrowers hereby represents and warrants that as of March 31,
2005, the aggregate principal outstanding balance of (i) the Tranche A Term
Loans is $13,333,333.34 and (ii) the Tranche B Term Loans is $12,997,267.76. The
obligation of each of the Loan Parties to repay the Term Loans, together with
all interest and fees accrued thereon, is absolute and unconditional, and such
obligations are secured pursuant to a perfected security interest in the assets
of the Loan Parties in accordance with the terms of the Loan Documents, and
there exists no right of set off or recoupment, counterclaim or defence of any
nature whatsoever to payment of the Loans.

 

5. Continuing Effect; No Other Waivers or Amendments. Except as expressly waived
hereby, all of the terms and provisions of the Credit Agreement and the other
Loan Documents are and shall remain in full force and effect.

 

6. No Default. No Default or Event of Default shall have occurred and be
continuing as of the Effective Date after giving effect to this Agreement.

 

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7. Counterparts. This Agreement may be executed in any number of counterparts by
the parties hereto, each of which shall be an original, and all of which when
taken together shall constitute one and the same instrument. Delivery of an
executed counterpart by facsimile transmission shall be effective as delivery of
a manually executed counterpart hereof.

 

8. Governing Law. This Agreement shall be governed by, and construed and
interpreted in accordance with, the laws of the state of New York.

 

*    *    *

 

[Signature pages to follow.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered by their respective proper and duly authorized officers
as of the day and year first above written.

 

SMTC CORPORATION

By:

 

/s/ John Caldwell

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Name:

 

John Caldwell

Title:

 

President

HTM HOLDINGS, INC.

By:

 

/s/ John Caldwell

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Name:

 

John Caldwell

Title:

 

President

SMTC MANUFACTURING

CORPORATION OF CANADA

By:

 

/s/ John Caldwell

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Name:

 

John Caldwell

Title:

 

President

LEHMAN COMMERCIAL PAPER INC.,

as General Administrative Agent

By:

 

/s/ Frank P. Turner

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Name:

 

Frank P. Turner

Title:

 

Vice President

 

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ACKNOWLEDGEMENT AND CONSENT

 

Each of the undersigned parties to the Second Amended and Restated Guarantee and
Collateral Agreement, dated as of June 1, 2004, as amended, supplemented or
otherwise modified from time to time, made by the undersigned in favor of Lehman
Commercial Paper Inc., as General Administrative Agent, for the benefit of the
Lenders, hereby (a) consents to the transactions contemplated by the First
Waiver and Consent to and under the Second Amended and Restated Credit and
Guarantee Agreement and (b) acknowledges and agrees that the guarantees and
grants of security interests contained in such Second Amended and Restated
Guarantee and Collateral Agreement and in the other Security Documents are, and
shall remain, in full force and effect after giving effect to the Ninth Waiver
and all prior modifications to the Second Amended and Restated Credit and
Guarantee Agreement.

 

SMTC MANUFACTURING CORPORATION OF

  CALIFORNIA

SMTC MANUFACTURING CORPORATION OF

  COLORADO

SMTC MANUFACTURING CORPORATION OF

  MASSACHUSETTS

SMTC MANUFACTURING CORPORATION OF

  NORTH CAROLINA

SMTC MANUFACTURING CORPORATION OF

  TEXAS

SMTC MANUFACTURING CORPORATION OF

  WISCONSIN

SMTC MEX HOLDINGS, INC.

QUALTRON, INC.

 

By:

 

/s/ John Caldwell

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Name:

 

John Caldwell

Title:

 

President