Exhibit 99.2



THIS SECOND AMENDING AGREEMENT dated as of the 17th day of August, 2005



BETWEEN:



SMTC MANUFACTURING CORPORATION OF CANADA/SOCIETE DE

FABRICATION SMTC DU CANADA



as Canadian Borrower



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CONGRESS FINANCIAL CORPORATION (CANADA)



as
Lender



WHEREAS Canadian Borrower and Lender entered
into a loan agreement dated June 1, 2004 (the Loan Agreement) pursuant to which certain credit facilities were established in favour of Canadian Borrower;



AND WHEREAS the Canadian Borrower and Lender entered into a first amending agreement in respect of the Loan Agreement
dated March 10, 2005 (the Original Amending Agreement) amending certain terms and conditions of the Loan Agreement;



AND WHEREAS the Canadian Borrower and Lender entered into a first amending agreement in respect of the Loan Agreement dated March 31, 2005 (the
First Amending Agreement) amending certain terms and conditions of the Loan Agreement and providing that the terms of the First Amending Agreement supercede and replace, in its entirety, the Original Amending Agreement to the
effect that the Original Amending Agreement is deemed to have had no force and effect and to the same extent as if it had never been executed and delivered;



AND WHEREAS the parties wish to enter into this agreement to amend certain terms and conditions of the Loan Agreement and the First Amending
Agreement;



NOW THEREFORE THIS SECOND AMENDING AGREEMENT
WITNESSES THAT in consideration of the covenants and agreements contained herein and for other good and valuable consideration, the parties hereto agree to amend the Loan Agreement and the First Amending Agreement as provided herein:



|Section 1 | General
|--------- | -------



In this Second Amending Agreement, unless otherwise defined or the context otherwise requires, all capitalized terms shall have the respective meanings
specified in the Loan Agreement.



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|Section 2 | To be Read with Loan Agreement
|--------- | ------------------------------



This Second Amending Agreement is an amendment to the Loan Agreement and the First Amending Agreement. Unless the context of this Second Amending
Agreement otherwise requires, the Loan Agreement, the First Amending Agreement and this Second Amending Agreement shall be read together and shall have effect as if the provisions of the Loan Agreement, the First Amending Agreement and this Second
Amending Agreement were contained in one agreement. The term Agreement when used in the Loan Agreement means the Loan Agreement as amended by the First Amending Agreement and this Second Amending Agreement, together with all
amendments, modifications, supplements, extensions, renewals, restatements, replacements and novations thereof from time to time.



|Section 3 | No Novations
|--------- | ------------



Nothing in this Second Amending Agreement, nor in the Loan Agreement when read together with the First Amending Agreement and this Second Amending
Agreement, shall constitute a novation, payment, re-advance or reduction or termination in respect of any Obligations.



|Section 4 | Amendments to Loan Agreement
|--------- | ----------------------------



Section 1 (Definitions) of the Loan Agreement is amended by adding the following definition in its proper alphabetical order:



1.83B Suspension Notice Period



Suspension Notice Period shall have the
meaning set forth in Section 6.3(b) hereof.



|Section 5 | Amendments to First Amending Agreement
|--------- | --------------------------------------



Section 4(d) of the First Amending Agreement is hereby deleted and replaced with the following:



| | (d) | Section 6.3 (Collection of Accounts) of the Loan Agreement is hereby deleted and replaced with the following:
| | ---- | ---------------------------------------------------------------------------------------------------------------



| | 6.3 | Collection of Accounts
| | ---- | ----------------------



| | (a) | Canadian Borrower shall establish and maintain, at its expense, blocked accounts or lockboxes and related blocked accounts (in either case, Blocked
Accounts) as Lender may specify, and Lender may establish and maintain bank accounts of Lender (Payment Accounts) in each case with such banks as are acceptable to Lender into which Canadian Borrower shall, in accordance
with Lenders instructions, promptly deposit, and direct its account debtors that remit payments by electronic funds transfers to directly remit, all payments on Accounts and all payments constituting proceeds of Inventory or other Collateral
in the
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| | identical form in which such payments are made, whether by cash, cheque or other manner. The banks at which the Blocked Accounts are established shall enter
into an agreement (each, a Blocked Account Agreement), in form and substance satisfactory to Lender, acting reasonably, providing that all items received or deposited in the Blocked Accounts are the property of Lender, that the
depository bank has no Lien upon, or right to set-off against, the Blocked Accounts, the items received for deposit therein, or the funds from time to time on deposit therein and that the depository bank will wire, or otherwise transfer, in
immediately available funds, on a daily basis, all funds received or deposited into the Blocked Accounts to the Payment Accounts or such other bank account of Lender as Lender may from time to time designate for such purpose. Canadian Borrower
agrees that all payments made to such Blocked Accounts or Payment Accounts or other funds received and collected by Lender, whether on the Accounts or as proceeds of Inventory or other Collateral or otherwise, shall be the property of Lender.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Notwithstanding Section 6.3(a) above, Lender, at the request of Canadian Borrower, shall provide Canadian Borrower and its Subsidiaries (if applicable) with dominion and control
over the Blocked Accounts (and other accounts of such Subsidiaries, if applicable) by suspending (a Suspension) the operation of certain provisions of such Blocked Account Agreements by executing and delivering a notice (each, a
Cash Dominion and Control Release Notice), in substantially the form attached as Schedule 6.3 hereto and in form and substance satisfactory to Lender, to the banks party to such Blocked Account Agreements provided:
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| | (i) | Canadian Borrower provides Lender with twenty (20) days prior written notice that it requires a period of Suspension (a Suspension Notice Period);
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | prior to the effectiveness of such Suspension and during the Suspension Notice Period, Lender or its designees shall be entitled solely to confirm that, at Canadian Borrowers
cost and expense, the amount of Total Excess Availability is not less than the greater of (A) US$2,500,000 or (B) twenty-five (25%) percent of the sum of the then outstanding and unpaid Revolving Loans under this Agreement and the Revolving Loans
(as defined in the US Loan Agreement) under the terms and conditions as existed immediately prior to the Suspension Notice Period; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | during such Suspension, the amount of Total Excess Availability is not less than the greater of (A) US$2,500,000 or (B) twenty-five (25%) percent of the sum of the then outstanding
and unpaid Revolving Loans under this Agreement and the Revolving Loans (as defined in the US Loan Agreement), in either case, for a period in excess of three (3) consecutive Business Days.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Canadian Borrower and Lender agree that a Suspension shall be in effect (A) upon Lender confirming that the Total Excess Availability test set out in
subparagraph (b)(ii) immediately above has been satisfied, (B) upon execution and delivery of the applicable Cash Dominion and Control Release Notice by Lender and the applicable bank and (C) only so long as (1) the Total Excess Availability test
set out in subparagraph (b)(iii) immediately above is satisfied and (2) no Event of Default exists or has occurred and is continuing. For greater certainty, Canadian Borrower acknowledges and agrees that any Suspension shall immediately be
terminated, and Lender shall immediately have dominion and control over the Blocked Accounts pursuant to the Blocked Account Agreements, at any time that the Total Excess Availability test set out in subparagraph (b)(iii) immediately above is not
satisfied or an Event of Default exists or has occurred and is continuing and Lender may, but shall not be obligated, to provide notice to the bank party to the applicable Blocked Account Agreement notifying it of the termination of such Suspension.



| | (c) | For purposes of calculating the amount of the Loans available to Canadian Borrower, such payments referred to in Section 6.3(a) above will be applied (conditional upon final
collection) to the Obligations on the Business Day of receipt by Lender of immediately available funds in the Payment Account provided such payments and notice thereof are received in accordance with Lenders usual and customary practices as in
effect from time to time and within sufficient time to credit Canadian Borrowers loan account on such day, and if not, then on the next Business Day. For the purposes of calculating interest on the Obligations, such payments or other funds
received will be applied (conditional upon final collection) to the Obligations on the date of receipt of immediately available funds by Lender in the Payment Account provided such payments or other funds and notice thereof are received in
accordance with Lenders usual and customary practices as in effect from time to time and within sufficient time to credit Canadian Borrowers loan account on such day, and if not, then on the next Business Day. If Lender receives funds in
a Payment Account at any time at which no Obligations are outstanding or in excess of such outstanding Obligations, Lender shall transfer such funds to Canadian Borrower at such account as Canadian Borrower may direct, provided that Canadian
Borrower shall, at Lenders request, deposit such funds to an account maintained at the bank at which the Payment Accounts are maintained and, prior to such transfer, shall execute and deliver to Lender a cash collateral agreement in form and
substance satisfactory to Lender providing to Lender a first priority Lien over such account.
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| | (d) | Except during a Suspension, Canadian Borrower and all of its affiliates, Subsidiaries, shareholders, directors, employees or agents shall, acting as trustee for
Lender, receive, as the property of Lender, any monies, cheques, notes, drafts or any other payment relating to and/or proceeds of
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | Accounts or other Collateral which come into their possession or under their control and immediately upon receipt thereof, shall deposit or cause the same to
be deposited in the Blocked Accounts or the Payment Accounts, or remit the same or cause the same to be remitted, in kind, to Lender. In no event, other than during a Suspension, shall the same be commingled with Canadian Borrowers own funds.
Canadian Borrower agrees to reimburse Lender on demand for any amounts owed or paid to any bank at which a Blocked Account or Payment Account is established or any other bank or person involved in the transfer of funds to or from the Blocked
Accounts or the Payment Accounts arising out of Lenders payments to or indemnification of such bank or person. The obligation of Canadian Borrower to reimburse Lender for such amounts pursuant to this Section 6.3 shall survive the termination
or non-renewal of this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 6 | Representations and Warranties
|--------- | ------------------------------



In order to induce Lender to enter into this Second Amending Agreement, Canadian Borrower represents and warrants to Lender as follows, which
representations and warranties shall survive the execution and delivery hereof:



| | (a) | the representations and warranties set forth in Section 8 of the Loan Agreement continue to be true and correct as of the date hereof;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------



| | (b) | the execution, delivery and performance of this Second Amending Agreement and the transactions contemplated hereunder are all within Canadian Borrowers corporate powers, have
been duly authorized and are not in contravention of law or the terms of Canadian Borrowers certificate of incorporation, by-laws or other organizational documentation, or any indenture, agreement or undertaking to which Canadian Borrower is a
party or by which Canadian Borrower or its property is bound. Canadian Borrower has duly executed and delivered this Second Amending Agreement. This Second Amending Agreement constitutes a legal, valid and binding obligation of Canadian Borrower,
enforceable against it by Lender in accordance with its terms;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | no Event of Default exists; and
| | --- | -------------------------------



| | (d) | Canadian Borrower is in compliance with the covenants contained in Section 6, Section 7 and Section 9 of the Loan Agreement.
| | --- | ----------------------------------------------------------------------------------------------------------------------------



|Section 7 | Conditions Precedent
|--------- | --------------------



This Second Amending Agreement shall not be effective until each of the following conditions has been met to the satisfaction of Lender or has been waived
in writing (in whole or in part) by Lender in its sole discretion:



| | (a) | Lender has received, in form and substance satisfactory to Lender, an original copy of each of the following documents:
| | --- | -----------------------------------------------------------------------------------------------------------------------



| | (i) | this Second Amending Agreement executed by Canadian Borrower and the other Obligors party hereto;
| | --- | -------------------------------------------------------------------------------------------------



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| | (ii) | documentation in connection with corporate actions and proceedings which Lender may have requested in connection herewith, such documents where requested by Lender or its counsel to
be certified by appropriate corporate officers or governmental authorities;
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | certificate of incumbency executed by Canadian Borrower;
| | ----- | --------------------------------------------------------



| | (iv) | all consents, waivers, acknowledgements and other agreements from third parties which Lender may deem necessary or desirable in order to give effect to the provisions or purposes of
this Second Amending Agreement;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (v) | originals or copies, as determined by Lender, of such other documents and instruments as are reasonably required by Lender, including all other documents listed on the closing
agenda relating to the transactions contemplated herein;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Canadian Borrower has paid all fees, expenses and disbursements, including, without limitation, legal fees, incurred by or payable to Lender in connection with this Second Amending
Agreement;
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| | (c) | all requisite corporate actions and proceedings in connection with this Second Amending Agreement shall have been completed;
| | --- | ----------------------------------------------------------------------------------------------------------------------------



| | (d) | no Event of Default exists; and
| | --- | -------------------------------



| | (e) | no material adverse change shall have occurred with respect to Canadian Borrower or any Obligor since the date of Lenders latest field examination and no change or event shall
have occurred which would have a material adverse effect on Canadian Borrower or any Obligor.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 8 | Expenses
|--------- | --------



Canadian Borrower shall pay all fees, expenses and disbursements including, without limitation, legal fees, incurred by or payable to Lender in connection
with any confirmation of the amount of Total Excess Availability contemplated hereunder and the preparation, negotiation, completion, execution, delivery and review of this Second Amending Agreement and all other documents and instruments arising
therefrom and/or executed in connection therewith.



|Section 9 | Continuance of Loan Agreement and Security
|--------- | ------------------------------------------



The Loan Agreement, as changed, altered, amended or modified by the First Amending Agreement and this Second Amending Agreement, shall be and continue in
full force and effect and is hereby confirmed and the rights and obligations of all parties thereunder shall not be affected or prejudiced in any manner except as specifically provided for in the First



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Amending Agreement and herein. It is agreed and confirmed that after giving effect to this Second Amending Agreement, all security delivered by Canadian
Borrower secures the payment of all of the Obligations including, without limitation, the obligations arising under the Loan Agreement, as amended by the terms of the First Amending Agreement and the Second Amending Agreement.



|Section 10 | Counterparts
|---------- | ------------



This Second Amending Agreement may be executed in any number of separate original or facsimile counterparts, each of which shall be deemed an original and
all of said counterparts taken together shall be deemed to constitute one and the same instrument.



|Section 11 | Governing Law
|---------- | -------------



The validity, interpretation and enforcement of this Second Amending Agreement and any dispute arising out of the relationship between the parties hereto,
whether in contract, tort, equity or otherwise, shall be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein.



|Section 12 | Effective Date
|---------- | --------------



Notwithstanding the date of execution, the terms of this Second Amending Agreement are effective as of July 26, 2005.



[SIGNATURE PAGE FOLLOWS]



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IN WITNESS WHEREOF the parties hereto have executed this Second Amending Agreement as of the day
and year first above written.



|                                                                                   |  |                                         |  |                                                                              |  |          |  |                  
|---------------------------------------------------------------------------------- |  | --------------------------------------- |  | ---------------------------------------------------------------------------- |  | -------- |  | -----------------
|LENDER                                                                             |  |                                         |  | CANADIAN BORROWER                                                           
|                                                                                   |  |                                        
|CONGRESS FINANCIALCORPORATION (CANADA)                                             |  |                                         |  | SMTC MANUFACTURINGCORPORATION OF CANADA/SOCIETEDE FABRICATION SMTC DU CANADA
|                                                                                   |  |                                         |  |                                                                             
|By:                                                                                |  | /s/ Sophia Ljucovic                     |  |                                                                              |  | By:      |  | /s/ John Caldwell
|Name:                                                                              |  | Sophia Ljucovic                         |  |                                                                              |  | Name:    |  | John Caldwell    
|Title:                                                                             |  | Vice President, Loan Officer            |  |                                                                              |  | Title:   |  | President & CEO  
|                                                                                   |  | Congress Financial Corporation (Canada) |  |                                                                              |  |          |  |                  
|                                                                                   |  |                                         |  |                                                                             
|Address:                                                                           |  |                                         |  |                                                                              |  | Address: |  |                  
|                                                                                   |  |                                        
|141 Adelaide Street West, Suite 1500 Toronto, Ontario, M5H 3L9 Fax: (416) 364-6068 |  |                                         |  | 635 Hood Road Markham, Ontario, L3R 4N6 Fax No: (905) 479-5326              



Each of the undersigned Obligors
hereby:



| | (a) | acknowledges, confirms and agrees that such Obligors Financing Agreements (as each of the same may have been amended, modified, supplemented, extended, renewed, restated or
replaced) remain in full force and effect as at the date hereof in respect of the Obligations under the Loan Agreement; and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | acknowledges and confirms that such Obligor has received a copy of the Loan Agreement and this Second Amending Agreement and understands the terms thereof.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------



Dated as of the 17th day of August, 2005.



|                         |  |                   |  |                     |  |        |  |                  
|------------------------ |  | ----------------- |  | ------------------- |  | ------ |  | -----------------
|SMTC NOVA SCOTIA COMPANY |  |                   |  | 940862 ONTARIO INC.
|                         |  |                   |  |                    
|By:                      |  | /s/ John Caldwell |  |                     |  | By:    |  | /s/ John Caldwell
|Name:                    |  | John Caldwell     |  |                     |  | Name:  |  | John Caldwell    
|Title:                   |  | President & CEO   |  |                     |  | Title: |  | President & CEO  



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|                                            |  |                   |  |                                                 |  |        |  |                  
|------------------------------------------- |  | ----------------- |  | ----------------------------------------------- |  | ------ |  | -----------------
|SMTC MANUFACTURINGCORPORATION OF CALIFORNIA |  |                   |  | SMTC MANUFACTURINGCORPORATION OF MASSACHUSETTS 
|                                            |  |                   |  |                                                
|By:                                         |  | /s/ John Caldwell |  |                                                 |  | By:    |  | /s/ John Caldwell
|Name:                                       |  | John Caldwell     |  |                                                 |  | Name:  |  | John Caldwell    
|Title:                                      |  | President & CEO   |  |                                                 |  | Title: |  | President & CEO  
|                                            |  |                  
|SMTC MANUFACTURINGCORPORATION OF WISCONSIN  |  |                   |  | SMTC MEX HOLDINGS, INC.                        
|                                            |  |                   |  |                                                
|By:                                         |  | /s/ John Caldwell |  |                                                 |  | By:    |  | /s/ John Caldwell
|Name:                                       |  | John Caldwell     |  |                                                 |  | Name:  |  | John Caldwell    
|Title:                                      |  | President & CEO   |  |                                                 |  | Title: |  | President & CEO  
|                                            |  |                  
|SMTC CORPORATION                            |  |                   |  | SMTC MANUFACTURINGCORPORATION OF NORTH CAROLINA
|                                            |  |                   |  |                                                
|By:                                         |  | /s/ John Caldwell |  |                                                 |  | By:    |  | /s/ John Caldwell
|Name:                                       |  | John Caldwell     |  |                                                 |  | Name:  |  | John Caldwell    
|Title:                                      |  | President & CEO   |  |                                                 |  | Title: |  | President & CEO  
|                                            |  |                  
|SMTC MANUFACTURINGCORPORATION OF TEXAS      |  |                   |  | HTM HOLDINGS, INC.                             
|                                            |  |                   |  |                                                
|By:                                         |  | /s/ John Caldwell |  |                                                 |  | By:    |  | /s/ John Caldwell
|Name:                                       |  | John Caldwell     |  |                                                 |  | Name:  |  | John Caldwell    
|Title:                                      |  | President & CEO   |  |                                                 |  | Title: |  | President & CEO  
|                                            |  |                  
|RADIO COMPONENTES DE MEXICO,S.A. DE C.V.    |  |                   |  | SMTC DE CHIHUAHUA, S.A. DE C.V.                
|                                            |  |                   |  |                                                
|By:                                         |  | /s/ John Caldwell |  |                                                 |  | By:    |  | /s/ John Caldwell
|Name:                                       |  | John Caldwell     |  |                                                 |  | Name:  |  | John Caldwell    
|Title:                                      |  | President & CEO   |  |                                                 |  | Title: |  | President & CEO  



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