Document:

Form of 4.875% Note due 2010

 Exhibit 4.3 
  
 FORM OF NOTE 
  
 THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE IS
EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
  
 UNLESS THIS NOTE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	No.:  1	 	 
	CUSIP No.:  05564E BG 0	 	Principal Amount: $150,000,000

  
 BRE PROPERTIES, INC.

  
 4.875% Notes due 2010 
  
 BRE Properties, Inc., a Maryland corporation (hereinafter called the
“Company,” which term includes any successor corporation under the Indenture referred to below), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of ONE HUNDRED AND FIFTY MILLION
DOLLARS ($150,000,000), on May 15, 2010, (the “Maturity Date”), and to pay interest thereon from May 19, 2005 or from the most recent date to which interest has been paid or duly provided for, semiannually on May 15 and November 15 of each
year (each an “Interest Payment Date”), commencing November 15, 2005, and at Maturity and any earlier Redemption Date (as defined herein), at the rate of 4.875 % per annum, until the principal hereof is paid or duly made available for
payment. Interest on this Note shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. The interest so 

 payable and punctually paid or duly provided for on any Interest Payment Date will, as provided in such Indenture, be
paid to the Person in whose name this Note (or one or more Predecessor Debt Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the May 1 or November 1 (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date. Any such interest which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be payable to the registered Holder hereof on the
relevant Regular Record Date by virtue of having been such Holder, and may be paid to the Person in whose name this Note (or one or more Predecessor Debt Securities) is registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to the Holder of this Note not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in such Indenture. 
  
 Payment of the principal of, premium, if any, and interest on this Note will be made at the office or agency of the Company
maintained for that purpose in the Borough of Manhattan, the City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that, at
the option of the Company, interest may be paid by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Registrar or by transfer to an account maintained by the payee located in the United States.

  
 This Note is one of a duly authorized issue of Debt Securities
of the Company (herein called the “Notes”) issued and to be issued in one or more series under an Indenture dated as of June 23, 1997, as amended by a First Supplemental Indenture dated as of April 23, 1998 (herein called, together with
all indentures supplemental thereto, the “Indenture”) between the Company and J.P. Morgan Trust Company, National Association (successor to Chase Manhattan Bank and Trust Company, National Association), as trustee (herein called the
“Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture, and the Officers’ Certificate dated May 19, 2005 pursuant to Sections 201, 301 and 303 of the Indenture creating
the series designated on the face hereof, for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes, and the terms upon which the Notes are, and are to
be, authenticated and delivered. This Note is one of the series designated on the face hereof initially limited (subject to exceptions provided in the Indenture) in aggregate principal amount to $150,000,000; provided, however, that the series may
be reopened without the consent of the Holders for the issuance of additional Notes as may be authorized by the Company from time to time. 
  
 The Notes are redeemable, in whole or from time to time in part, at the option of the Company on any date (a “Redemption Date”), at a redemption
price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to such Redemption
Date) discounted to such Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 15 basis points, plus, in either case, accrued and unpaid interest on the
principal amount being 
  

 2 

 redeemed to such Redemption Date; provided that installments of interest on Notes which are due and payable on an
Interest Payment Date falling on or prior to the relevant Redemption Date shall be payable to the Holders of such Notes, or one or more Predecessor Debt Securities, registered as such at the close of business on the relevant Regular Record Date,
according to their terms and the provisions of the Indenture. Notice of redemption shall be given in the manner provided in the Indenture, not less than 30 days nor more than 60 days prior to the relevant Redemption Date, to each Holder of Notes to
be redeemed. Any redemption of Notes shall be made in accordance with the further terms and provisions set forth in the Indenture. 
  
 As used herein, the following terms will have the meanings set forth below: 
  
 “Treasury Rate” means, with respect to any Redemption Date for the Notes, (i) the yield, under the heading which
represents the average for the immediately preceding week, appearing in the most recently published statistical release published by the Board of Governors of the Federal Reserve System designated as “Statistical Release H.15(519)” or any
successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury
Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Maturity Date, yields for the two published maturities most closely corresponding to the Comparable
Treasury Issue shall be determined and the Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month), or (ii) if such release (or any successor release) is not published during the
week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date. 
  
 “Comparable Treasury Issue” means the United States Treasury
security selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of comparable maturity to the remaining term of the Notes. 
  
 “Independent Investment Banker” means Banc of America Securities LLC or J.P. Morgan Securities Inc. or either of their respective successors, or
if both such firms are unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Trustee after consultation with the Company. 
  
 “Comparable Treasury Price” means with respect to any Redemption
Date for the Notes (i) the average of four Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations. 
  

 3 

 “Reference Treasury Dealer” means each of Banc of America Securities LLC, J.P. Morgan
Securities Inc., Commerzbank Capital Markets Corp. and Wachovia Capital Markets, LLC, and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a
“Primary Treasury Dealer”), the Company shall substitute therefor another Primary Treasury Dealer. 
  
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined
by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on
the third Business Day preceding such Redemption Date. 
  
 If an
Event of Default with respect to the Notes shall occur and be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect provided in the Indenture. 
  
 The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the Company and rights of the Holders of the Debt Securities of each series issued under the Indenture at any time by the Company and the Trustee with the consent of the Holders
of not less than a majority in aggregate principal amount of the Debt Securities at the time Outstanding of each series affected thereby. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal
amount of the Debt Securities of any series at the time Outstanding, on behalf of the Holders of all Debt Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Notes issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
  
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of, premium, if any, and interest on this Note, at the time, place and rate, and in the coin or currency, herein and in the Indenture prescribed. 
  
 As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Note may be registered on the Security Register upon surrender of this Note for registration of transfer at the office or agency of the Company maintained for the purpose in any place where the principal of, premium, if
any, and interest on this Note are payable, duly endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by the Holder hereof or by his attorney duly authorized in
writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
  
 The Notes are issuable only in registered form without coupons in the denominations of $1,000 and integral multiples of
$1,000. As provided in the Indenture and subject to certain limitations set forth therein, the Notes are exchangeable for a like aggregate principal amount of Notes of authorized denominations as requested by the Holders surrendering the same.

  

 4 

 No service charge shall be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith, other than in certain cases provided in the Indenture. 
  
 Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or
the Trustee may treat the Person in whose name this Note is registered as owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

  
 The Indenture contains provisions whereby (i) the Company may
be discharged from its obligations with respect to the Notes (subject to certain exceptions) or (ii) the Company may be released from its obligations under specified covenants and agreements in the Indenture, in each case if the Company irrevocably
deposits with the Trustee money or Government Obligations sufficient to pay and discharge the entire indebtedness of all Notes, and satisfies certain other conditions, all as more fully provided in the Indenture. 
  
 This Note shall be governed by and construed in accordance with the laws of
the State of New York, without regard to conflict of law principles that would result in the application of any law other than the laws of the State of New York. 
  
 All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

  
 Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee under the Indenture by the manual signature of one of its authorized signatories, this Note shall not be entitled to any benefits under the Indenture or be valid or obligatory for any purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 5 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

  
 Dated: 
  

							
	[Seal]	 	 	 	BRE PROPERTIES, INC.
				
	Attest:	 	  

	 	By:	 	

	 	 	 Edward F. Lange, Jr.
 Executive Vice President,
 Chief Financial Officer and
 Secretary
	 	 	 	 Constance B. Moore
 President and Chief
 Executive Officer

  

			
	 TRUSTEE’S CERTIFICATE OF
 AUTHENTICATION
 This is one of the Debt Securities of the series
 designated therein referred to in the within-
 mentioned Indenture.

	
	 J.P. MORGAN TRUST COMPANY,
 NATIONAL
ASSOCIATION,
 as Trustee

		
	 By:
	 	  

	 	 	Authorized Signatory

  
  

 ABBREVIATIONS 
  
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations: 
  

													
	TEN COM	 	–	  	as tenants in common	  	UNIF GIFT MIN ACT –	 	         Custodian            
	TEN ENT	 	–	  	as tenants by the entireties	  	 	 	(Cust)	 	            (Minor)
	JT TEN	 	–	  	as joint tenants with right of survivorship and not as tenants in common	  	 	 	Under Uniform Gifts to
Minors
Act                             
	 	 	 	  	 	  	 	 	 	 	            (State)	 	 

  
 Additional
abbreviations may also be used though not in the above list. 
  
 FOR VALUE
RECEIVED, the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 
  
 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 

	
	 
	 
	 
	 

  
  
 __________________________________________________________________________________________________________________________________________________________________________

 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE 
  
  
 __________________________________________________________________________________________________________________________________________________________________________ 
 the within Note and all rights thereunder, hereby irrevocably constituting and appointing 
  
  
 ____________________________________________________________________________________________________Attorney 
 to transfer said Note on the books of
the Company with full power of substitution in the premises. 
  
 Dated:                     
  
 Notice: The signature(s) to this assignment must correspond with the name(s) as it/they appear(s) upon the face of the within Note in every particular,
without alteration or enlargement or any change whatever. 
  

 7First Amendment to Lease and Extension Agreement

 EXHIBIT 10.1 
  
 FIRST AMENDMENT TO LEASE 
 AND EXTENSION AGREEMENT 
  
 THIS FIRST AMENDMENT TO LEASE
AND EXTENSION AGREEMENT (the “First Amendment”) is made as of this 1st day of October, 2004 by and between Teachers Insurance and Annuity Association of America, a New York corporation, for the benefit of its Real Estate Account (the
“Landlord”) having an office at 730 Third Avenue, New York, New York 10017 and SMTC Manufacturing Corporation of Massachusetts, a Massachusetts corporation (the “Tenant”) having a mailing address c/o SMTC Corporation, 635 Hood
Road, Markham, Ontario, Canada L3R 4N6, Attention: Linda Millage, Director of Financial Reporting. 
  
 WITNESSETH: 
  
 WHEREAS, Lincoln-Franklin LLC (the “Original Landlord”) has leased certain space comprised of approximately 144,000 rentable square feet (the “Premises”) to the Tenant on the first (1st) floor in that certain building (the “Building”) located at and known as 109 Constitution Boulevard, Franklin, Massachusetts (the Building
together with the land parcel on which it is situated is hereinafter called the “Property”) pursuant to that certain Lease dated August 11, 2000 (the “Lease”); and 
  
 WHEREAS, the Landlord is the owner of the Property and is the successor in interest to RREEF America REIT Corp. BB (the
“Successor Landlord”) as “Landlord” under the Lease, and the Successor Landlord is the successor in interest to the Original Landlord as “Landlord” under the Lease; and 
  
 WHEREAS, SMTC Corporation, a Delaware corporation (the “Guarantor”)
executed and delivered that certain Guarantee dated August 11, 2000 in favor of the Original Landlord (the “Guarantee”) in which the Guarantor guaranteed to the Original Landlord and its successors the payment and performance of all of the
Tenant’s covenants, agreements and obligations on the part of the Tenant to be observed, performed and complied with under the Lease; and 
  
 WHEREAS, the Landlord and the Tenant mutually desire to extend the Term of the Lease and to amend the Lease upon the terms and conditions hereinafter set
forth. 
  
 NOW, THEREFORE, in consideration of the mutual
covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and subject to the conditions that Tenant is current as to payment of Yearly Rent and other charges
under the Lease and no default of Tenant exists under the Lease which remains uncured beyond any applicable notice, grace and cure periods under the Lease, the Landlord and the Tenant hereby agree that as of the “Extended Term Commencement
Date” (as said term is hereinafter defined), the Lease is hereby amended as follows: 
  
 1. As used in this First Amendment, the term “Extended Term Commencement Date” shall mean October 1, 2004 and the term “Extended Term” shall mean the period commencing on the Extended Term
Commencement Date and expiring on September 30, 2014, unless sooner terminated in accordance with the terms and provisions of the Lease. 

 2. The term of the Lease is extended to September 30, 2014. Exhibit 1, Sheet 2 to the Lease is amended to
change the meaning of the defined term “Termination Date” to the following “September 30, 2014 (unless sooner terminated in accordance with the terms and provisions of the Lease), or such later date to which the term of this Lease may
be extended by Tenant pursuant to Paragraph 2 of the Rider to Lease.” 
  
 3. The Tenant is currently in possession of the Premises in its existing “As Is” condition. 
  
 4. During the Extended Term, the Tenant shall pay Yearly Rent for the Premises in accordance with the terms and provisions of the Lease, as amended by
this First Amendment, as follows: 
  
 Yearly Rent 
  

									
	 Rent Year

	  	 Annual Per Square
 Foot Rate

	  	Yearly Rent

	  	Monthly Rent

	 1 (10/1/2004 through and including 9/30/2005)
	  	 $4.50 per rentable
 square foot
	  	$	648,000.00	  	$	54,000.00
				
	 2 (10/1/2005 through and including 9/30/2006)
	  	 $5.50 per rentable
 square foot
	  	$	792,000.00	  	$	66,000.00
				
	 3 (10/1/2006 through and including 9/30/2007)
	  	 $6.00 per rentable
 square foot
	  	$	864,000.00	  	$	72,000.00
				
	 4 (10/1/2007 through and including 9/30/2008)
	  	 $7.25 per rentable
 square foot
	  	$	1,044,000.00	  	$	87,000.00
				
	 5 (10/1/2008 through and including 9/30/2009)
	  	 $7.50 per rentable
 square foot
	  	$	1,080,000.00	  	$	90,000.00

  

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	 6 (10/1/2009 through and including 9/30/2010)
	  	 $8.00 per rentable
 square foot
	  	$	1,152,000.00	  	$	96,000.00
				
	 7 (10/1/2010 through and including 9/30/2011)
	  	 $8.00 per rentable
 square foot
	  	$	1,152,000.00	  	$	96,000.00
				
	 8 (10/1/2011 through and including 9/30/2012)
	  	 $8.50 per rentable
 square foot
	  	$	1,224,000.00	  	$	102,000.00
				
	 9 (10/1/2012 through and including 9/30/2013)
	  	 $8.50 per rentable
 square foot
	  	$	1,224,000.00	  	$	102,000.00
				
	 10 (10/1/2013 through and including 9/30/2014)
	  	 $8.50 per rentable
 square foot
	  	$	1,224,000.00	  	$	102,000.00

  
 5. In the definition
of “Landlord” in Exhibit 1, Sheet 1 of the Lease, the reference to “LINCOLN-FRANKLIN LLC, a Delaware limited liability company” is hereby deleted and, in replacement thereof, the following is hereby added to the Lease:
“Teachers Insurance and Annuity Association of America, for the benefit of its Real Estate Account”. 
  
 6. In the definition of “Mailing Address” in Exhibit 1, Sheet 1 of the Lease, the addresses of “c/o Lincoln Property Company, 101 Arch
Street, Suite 650, Boston, Massachusetts 02110, Attention: Sean V. Chrisom...with a copy to: Goulston & Storrs, P.C., 400 Atlantic Avenue, Boston, Massachusetts 02110, Attention: Raymond Kwasnick, Esq.” are hereby deleted and, in
replacement thereof, the following is hereby added to the Lease: “730 Third Avenue, New York, New York 10017, Attention: Michael Farrell, Associate Director/Mortgage and Real Estate Division”. 
  
 7. Section 4.7 of the Lease, entitled “Landlord’s
Contribution”, is hereby deleted in its entirety from the Lease. 
  
 8. The following is hereby added to subparagraph (b) of Section 26 of the Lease: “Notwithstanding anything to the contrary contained in this Lease, the Tenant acknowledges and agrees that the Landlord owns the Building as an investment
for its separate Real Estate Account and the Landlord’s liability under this Lease shall be limited to the Landlord’s equity interest in 

  

 - 3 - 

 
the Building and the uncollected rents, issues and profits thereof without recourse to any other assets of the Landlord, whether of its separate Real Estate
Account or its general account. The Tenant specifically agrees to look solely to the Landlord’s then equity interest in the Building at the time owned and the uncollected rents, issues and profits thereof, for recovery of any judgment against
the Landlord and not to any other assets of the Landlord; it being specifically agreed that neither the Landlord (original or successor) nor any of its assigns, agents, servants, employees, directors, shareholders, officers, trustees and
beneficiaries shall ever be personally liable for any such judgment, or for the payment of any monetary obligations to the Tenant. Nothing in this Section 26 shall limit any right that Tenant might otherwise have to obtain injunctive relief against
Landlord or to take any other action which shall not involve the personal liability of Landlord to respond in monetary damages from Landlord’s assets, other than Landlord’s equity interest in the Building and the uncollected rents, issues
and profits thereof.” 
  
 9. The following paragraph is
hereby added as subparagraph (c) to Section 29.3 of the Lease: “Each of the Landlord and the Tenant represents and warrants to the other that it has dealt with no broker in connection with the consummation of that certain First Amendment to
Lease and Extension Agreement dated as of October 1, 2004 by and between the Landlord and the Tenant other than JRT Realty Group, Inc., Cushman & Wakefield of Massachusetts, Inc. and Equis Corporation (collectively, the “Recognized
Brokers”). In the event of any brokerage claims against either the Landlord or the Tenant predicated upon the other party’s prior dealing with any broker other than any of the Recognized Brokers, the party with such dealings agrees to
defend the party against which such claim was made and to indemnify and hold harmless such party against any such claim (except any claim by any of the Recognized Brokers, all of which shall be paid by the Landlord pursuant to its separate
agreements with the Recognized Brokers). The obligations of each of the Landlord and the Tenant contained in the preceding sentence shall expressly survive the expiration or any termination of this Lease.” 
  
 10. Paragraph 1 entitled “Security Deposit” is hereby deleted in
its entirety and, in replacement thereof, the following is hereby added to the Lease: 
  

	 	“1.	SECURITY DEPOSIT/LETTER OF CREDIT. 

  
 Simultaneously with the Tenant’s execution and delivery of that certain First Amendment to Lease and Extension Agreement dated as of October 1, 2004
by and between the Landlord and the Tenant, the Tenant shall deposit with the Landlord a Letter of Credit in the amount and form hereafter described (the “Letter of Credit”) to be held and, as applicable, presented and drawn upon and the
proceeds thereof retained and applied by the Landlord as security for the faithful payment, performance and observance by the Tenant of the terms, covenants, provisions, conditions and agreements of the Tenant under and pursuant to this Lease. It is
agreed and understood that in the event of the occurrence of a default of the Tenant under the Lease beyond all applicable notice, grace, or cure periods, the Landlord may present for payment and draw upon the Letter of Credit and the Landlord shall
use, apply or retain the whole or any part of the amounts available to be drawn under the Letter of Credit to the extent required for the payment of any Yearly Rent, the Tenant’s Taxes, the Tenant’s Operating Expenses, additional rent or
any other sum which the Landlord may expend or be entitled to the payment of by reason of any default of the Tenant or any failure of the Tenant to pay, perform or observe any term, covenant, 
  

 - 4 - 

 condition or provision of this Lease, including without limitation, any late charges, interest payments or any damages or
deficiency in the re-letting of the Premises whether said damages or deficiency occurred before or after summary proceedings or other re-entry by the Landlord. 
  

If the Landlord shall present, draw upon and apply or retain all or any portion of the amounts evidenced by the Letter of Credit, the Tenant shall
immediately replenish and reinstate the amount available to be drawn under the Letter of Credit or cause a substitute Letter of Credit in the form and amount required by this Lease to be re-issued so that at all times during the Term of this Lease,
the Landlord shall be entitled to draw upon the entire dollar amount of the Letter of Credit in the amounts required hereunder notwithstanding any prior presentation and draw thereon. 
  
 In addition, in the event of a termination of this Lease by the Landlord as a result of any default of the Tenant or a
rejection of this Lease pursuant to the provisions of the Federal Bankruptcy Code, the Landlord shall have the right to draw upon the Letter of Credit and/or any substitute Letter of Credit or additional Letter(s) of Credit (from time to time, if
necessary) to cover the full amount of damages and other amounts due from the Tenant to the Landlord under this Lease without reference, if the same is applicable, to any limitation on such damages and amounts that might otherwise be imposed by the
Bankruptcy Code. 
  
 The Letter of Credit must at all times be an
“irrevocable clean” commercial Letter of Credit in the amount required by this Lease. The Letter of Credit shall be in the form attached hereto as Exhibit 7 or in another form approved by Landlord, which approval Landlord shall not
unreasonably withhold. The Letter of Credit shall be issued by Wachovia Bank, N.A. or another bank or financial institution approved by Landlord, which approval Landlord shall not unreasonably withhold. The Letter of Credit must be payable upon
presentment in New York City, New York. In addition, the Letter of Credit shall be payable solely to the benefit of the Landlord from time to time under this Lease and shall be automatically renewable and, upon the direction of the Landlord,
transferable to and payable for the benefit of any successor the Landlord under the Lease. The Letter of Credit (or substitutes thereof consistent with the terms hereof) shall be and remain presentable and payable for a period of one (1) year from
the original date of issuance. The Letter of Credit shall be automatically renewable in accordance with the terms set forth in the form attached as Exhibit 7; provided, however, that if the issuer of the Letter of Credit gives notice
of its election not to renew the Letter of Credit, then Tenant shall be required to deliver to Landlord a new Letter of Credit satisfying the conditions set forth in this Paragraph 1 of Rider to Lease (a “Substitute Letter of Credit”) on
or before the date that is thirty (30) days prior to the expiration of the term of such Letter of Credit. If Tenant fails to deliver a Substitute Letter of Credit when required, then Landlord may, without giving any additional notice to Tenant, draw
down the Letter of Credit. The proceeds from any such draw shall be held by the Landlord as a cash security deposit under this Lease to be used, applied or retained as provided herein including, without limitation, application against any defaults
of the Tenant hereunder, which remain uncured beyond all applicable notice, grace or cure periods herein, from time to time arising under this Lease. 
  
 The Tenant shall bear all costs and expenses in connection with procuring the Letter of Credit (and any Substitute Letter of Credit) and maintaining it in
full force and effect for the time 
  

 - 5 - 

 periods required hereunder. In the event of a sale or other transfer of the Building, the Tenant shall, at its sole cost
and expense, cause the Letter of Credit, in the form required hereunder (and any Substitute Letter of Credit, in the form required hereunder), to be issued to and for the benefit of such transferee or purchaser, as designated by the Landlord.

  
 The Landlord from time to time under this Lease, shall be
entitled to receive thirty (30) days prior written notice of any cancellation of the Letter of Credit for any reason and the Letter of Credit shall not be cancellable unless and until the Landlord shall have received such thirty (30) day advance
written notice. Upon (i) receiving notice of cancellation of the Letter of Credit or (ii) failure of the Tenant to deliver to the Landlord a substitute Letter of Credit on or before the date which is thirty (30) days prior to any renewal date and
whether or not the Tenant shall then be in default in the payment, performance or observance of any term, covenant or provision of this Lease, the Landlord shall be entitled to present, draw upon and retain the entire amount of the Letter of Credit
and upon so doing, the Landlord shall be entitled to hold, apply and retain the proceeds of such payment as if it were a cash security deposit under this Lease to be applied against defaults of the Tenant, which remain uncured beyond all applicable
notice, grace or cure periods herein, from time to time arising under this Lease. 
  
 It is agreed and understood that any failure of the Tenant to perform, observe or comply with any term or provision contained in this Paragraph 1 of the Rider to Lease to be performed or observed by the Tenant shall
entitle the Landlord to the same rights and remedies under this Lease, as a failure by the Tenant to pay Yearly Rent as and when same shall be due and payable. 
  

The amount of the Letter of Credit shall be Four Hundred Fifty Thousand and No/100ths ($450,000.00) Dollars. 
  
 Within thirty (30) days after the last day of the term of this Lease or the
date on which all of Tenant’s obligations under this Lease have been satisfied, whichever is later, Landlord shall return all collateral held by Landlord as the Security Deposit for Tenant’s obligations under this Lease, whether in the
form of the Letter of Credit, cash, or both. 
  
 Upon
Landlord’s receipt and approval of the Letter of Credit and the execution and delivery of this First Amendment by all the parties hereto, Landlord shall pay to Tenant $162,750.00 representing the balance of the original cash security deposit
currently held by Landlord.” 
  
 11. In the first sentence of
subparagraph A of Paragraph 3 of the Rider to Lease, the word “retail” is deleted. 
  
 12. Exhibit 7 to the Lease is deleted in its entirety and is replaced with Exhibit 7 to this First Amendment. 
  
 13. All capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to them in the Lease. 
  

 - 6 - 

 14. Except as amended and modified by this First Amendment, all the terms, provisions, covenants and
conditions of the Lease are hereby affirmed and ratified. 
  
 15.
This First Amendment may be executed in any number of counterparts, each of which is an original, but all of which shall constitute one instrument. 
  
 [Remainder of page intentionally left blank. Signatures appear on next following page.] 
  

 - 7 - 

 IN WITNESS WHEREOF, this First Amendment to Lease and Extension Agreement has been executed as of the day
and year first above written. 
  

					
	 Landlord:
	 	TEACHERS INSURANCE AND
	 	 	ANNUITY ASSOCIATION OF AMERICA,
	 	 	a New York corporation for the benefit of
	 	 	its Real Estate Account
			
	 	 	By:	 	 /s/ Michael Farrell

	 	 	Its:	 	Director
		
	 Tenant:
	 	SMTC MANUFACTURING CORPORATION
	 	 	OF MASSACHUSETTS
			
	 	 	By:	 	 /s/ Patrick Dunne

	 	 	Its:	 	Senior Vice President

  

 - 8 - 

			
	 GUARANTOR:

	
	 ACKNOWLEDGED, AGREED AND

	 CONSENTED TO AS OF THIS

	 1ST DAY OF OCTOBER, 2004.

	
	For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby affirms and ratifies its obligations as Guarantor under that
certain Guarantee dated August 11, 2000 to guarantee to the Landlord the payment and performance of all of the covenants, agreements and obligations on the part of the Tenant to be observed, performed and complied with under the
Lease.
	
	 SMTC CORPORATION,

	 a Delaware corporation

		
	 By:
	 	 /s/ Jane Todd

	 Its:
	 	Chief Financial Officer
	
	 Guarantor’s Address:

	 SMTC Corporation

	 632 Hood Road

	 Markham, Ontario, Canada L3R 4N6

	Attention: Linda Millage, Director of Financial Reporting

  
 TIAA SMTC 
  

 - 9 -

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