Document:

Letter of amendment dated August 4, 2009

 Exhibit 10.57 
 Wachovia Capital Finance Corporation (Canada) 
 141 Adelaide Street West, Suite 1500 
 Toronto, Ontario M5H 3L5 
  

					
	

	 	August 4, 2009	  	

 VIA EMAIL 
 SMTC Manufacturing Corporation of California 
 2302 Trade Zone Boulevard 
 San Jose, California USA 95131 
 -and- 
 SMTC
Manufacturing Corporation of Massachusetts 
 109 Constitution Boulevard, Unit 160 
 Franklin, Massachusetts USA 02038 
 -and- 
 SMTC Mex Holdings, Inc. 
 635 Hood Road 
 Markham, Ontario Canada L3R 4N6 
 Dear Ms. Jane Todd: 
  

	 	Re:	Wachovia Capital Finance Corporation (Central), Export Development Canada, SMTC Manufacturing Corporation of California, SMTC Manufacturing Corporation of
Massachusetts and SMTC Mex Holdings, Inc. 

 Reference is made to the second amended and
restated US loan agreement dated as of August 7, 2008 as amended by letter agreement dated April 2, 2009 (as amended, modified, supplemented, extended, renewed, restated or replaced from time to time, the “US Loan Agreement”)
between Wachovia Capital Finance Corporation (Central), as the Revolving Lender and the Agent, Export Development Canada, as the Tranche B Lender and the Tranche B Agent, and each of SMTC Manufacturing Corporation of California, SMTC
Manufacturing Corporation of Massachusetts and SMTC Mex Holdings, Inc., as the US Borrowers. 
  

	 	1.	Definitions. In this letter, unless otherwise defined or the context otherwise requires, all capitalized terms shall have the respective meanings specified in
the US Loan Agreement. 

  

	 	2.	Amendment to US Loan Agreement. 

  

	 	(a)	This letter is an amendment to the US Loan Agreement. Unless the context of this letter otherwise requires, the US Loan Agreement and this letter shall be read together
and shall have effect as if the provisions of the US Loan Agreement and this letter were contained in one agreement. The term “Agreement” when used in the US Loan Agreement means the US Loan Agreement as amended by this letter,
together with all amendments, modifications, supplements, extensions, renewals, restatements and replacements thereof from time to time. 

	 	(b)	The US Loan Agreement is amended as follows: 

  

	 	(i)	Schedule 8.18 hereto shall be a schedule to the US Loan Agreement. 

  

	 	(ii)	Section 8.18 “EBITDA” of the US Loan Agreement is deleted and replaced with: 

 “8.18    EBITDA 
 Each US Borrower shall ensure that EBITDA for SMTC Corporation and its Subsidiaries, calculated at the end of each month on
a consolidated trailing twelve (12) month basis, shall not be less than the amounts set forth in the table below: 
  

				
	 End of Month
	  	TTM EBITDA
		
	January 2009	  	US$	5,900,000
		
	February 2009	  	US$	6,200,000
		
	March 2009	  	US$	3,400,000
		
	April 2009	  	US$	3,400,000
		
	May 2009	  	US$	4,200,000
		
	June 2009	  	US$	3,700,000
		
	July 2009	  	US$	4,200,000
		
	August 2009	  	US$	4,000,000
		
	September 2009	  	US$	3,700,000
		
	October 2009	  	US$	3,800,000
		
	November 2009	  	US$	4,300,000
		
	December 2009	  	US$	3,800,000
		
	January 2010	  	US$	4,200,000
		
	February 2010	  	US$	4,700,000
		
	March 2010	  	US$	5,500,000
		
	April 2010	  	US$	4,200,000
		
	May 2010	  	US$	4,700,000
		
	June 2010	  	US$	5,500,000

  

 Page 2 

 It is the intention of the Agent, the Tranche B Agent and the US Borrowers
to reset in writing the EBITDA covenant in Section 8.18 by July 10, 2010 and if the Agent, the Tranche B Agent and the US Borrowers cannot agree on such reset by July 10, 2010 then the US Borrowers shall comply with the Fixed
Charge Coverage Ratio in Section 8.22. 
 The Agent, the Tranche B Agent and the US Borrowers
acknowledge and agree that Schedule 8.18 sets out how the Agent calculated the EBITDA covenant in Section 8.18 and that total 2008 EBITDA of US$5,897,000 in column A in Schedule 8.18 represents EBITDA for 2008 retrieved
from SMTC Corporation’s 2008 financial statements.”. 
  

	 	(iii)	Section 8.22 “Fixed Charge Coverage Ratio” of the US Loan Agreement is deleted and replaced with: 

 “8.22    Fixed Charge Coverage Ratio 
 In the event that the Agent, the Tranche B Agent and the US Borrowers cannot agree to reset in writing the EBITDA covenant
in Section 8.18 by July 10, 2010 then each US Borrower shall ensure that SMTC Corporation and its Subsidiaries maintain a Fixed Charge Coverage Ratio of not less than 1.25:1 calculated at the end of each fiscal month starting with
July 2010 on a consolidated trailing twelve (12) month basis and in accordance with GAAP.”. 
  

	 	(iv)	Section 8.24 “Maximum Unfunded Capital Expenditures” of the US Loan Agreement is deleted and replaced with:

 “8.24    Maximum Unfunded Capital Expenditures 
 Each US Borrower shall ensure that SMTC Corporation and its Subsidiaries do not, directly or indirectly, make or commit to
make, whether through purchase, capital leases or otherwise, unfunded Capital Expenditures in an aggregate amount in excess of US$1,000,000 for fiscal year 2009 of SMTC Corporation. 
 It is the intention of the Agent, the Tranche B Agent and the US Borrowers to reset in writing the Maximum Unfunded Capital
Expenditures covenant in Section 8.24 by July 10, 2010 and if the Agent, the Tranche B Agent and the US Borrowers cannot agree on such reset by July 10, 2010 then the maximum unfunded capital expenditure amount above shall be
US$500,000 for fiscal year 2010 and each fiscal year of SMTC Corporation on a go forward basis.”. 
  

	 	(c)	The effective date of the amendment to the US Loan Agreement provided in this letter is August 4, 2009. 

  

	 	3.	No Novations. Nothing in this letter, or in the US Loan Agreement when read together with this letter, shall constitute a novation, payment, re-advance or
reduction or termination in respect of any Obligations. 

  

	 	4.	Financing Agreement. This letter is a Financing Agreement. 

  

 Page 3 

	 	5.	Expenses. The US Borrowers shall pay all fees, expenses and disbursements including, without limitation, legal fees, incurred by or payable to the Agent, Tranche
B Agent and US Lenders in connection with the preparation, negotiation, completion, execution, delivery and review of this letter and all other documents and instruments arising therefrom and/or executed in connection therewith.

  

	 	6.	Conditions Precedent to Effectiveness. This letter shall not be effective until each of the following conditions has been met to the satisfaction of each of the
Agent, the Tranche B Agent and the US Lenders or has been waived in writing (in whole or in part) by all of them in their sole respective discretion: 

  

	 	(a)	the Agent, the Tranche B Agent and the US Lenders have received this letter duly authorized, executed and delivered by each of the US Borrowers and the Obligors;

  

	 	(b)	[no Default or Event of Default has occurred and is continuing; and 

  

	 	(c)	no material adverse change shall have occurred with respect to any of the US Borrowers or the Obligors since the date of the Agent’s latest field examination and
no change or event shall have occurred which would have a material adverse effect on any of the US Borrowers or the Obligors. 

  

	 	7.	Continuance of US Loan Agreement and Security. 

  

	 	(a)	The US Loan Agreement, as amended by this letter, 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 herein. 

  

	 	(b)	Each of the US Borrowers and the Obligors hereby acknowledges, confirms and agrees that: 

  

	 	(i)	all security delivered by the US Borrowers and the Obligors secures the payment of all of the Obligations including, without limitation, the obligations arising under
the US Loan Agreement, as amended by the terms of this letter; and 

  

	 	(ii)	the Agent, the Tranche B Agent and the US Lenders shall continue to have valid, enforceable and perfected first priority liens upon the collateral described in the
Financing Agreements, subject only to liens expressly permitted pursuant to the US Loan Agreement. 

  

	 	(c)	To induce the Agent, the Tranche B Agent and the US Lenders to enter into this letter, each of the US Borrowers and the Obligors hereby represent and warrant to each of
the Agent, the Tranche B Agent and the US Lenders as follows, which representations and warranties shall survive the execution and delivery of this letter: 

  

	 	(i)	the US Borrowers and the Obligors are in compliance with all covenants in the Financing Agreements; 

  

 Page 4 

	 	(ii)	all the representations and warranties set out in the Financing Agreements are true and accurate; 

  

	 	(iii)	no Default or Event of Default has occurred or is continuing; 

  

	 	(iv)	no material adverse change has occurred with respect to any of the US Borrowers or the Obligors since the date of the Agent’s latest field examination and no
change or event has occurred which would have a material adverse effect on any of the US Borrowers or the Obligors; 

  

	 	(v)	the execution delivery, delivery and performance of this letter and the transactions contemplated hereunder are all within its powers, have been duly authorized by it
and are not in contravention of law or the terms of its organizational documents or any indenture, agreement or undertaking to which it is a party or by which it or its property is bound; 

  

	 	(vi)	it has duly executed and delivered this letter; and 

  

	 	(vii)	this letter constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms. 

  

	 	8.	Counterparts. This letter may be executed in any number of separate original, facsimile or pdf 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. 

  

	 	9.	Governing Law. The validity, interpretation and enforcement of this letter 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 State of Illinois. 

  

	 	10.	Further Assurances. At the request of any of the Agent, the Tranche B Agent and the US Lenders at any time and from time to time, each of the US Borrowers and
the Obligors shall, at their expense, duly execute and deliver, or cause to be duly executed and delivered, such further agreements, documents and instruments, and do or cause to be done such further acts as may be requested by any of the Agent, the
Tranche B Agent and the US Lenders to effectuate the provisions or purposes of this letter. 

  

	 	11.	Amendments and Waivers. Neither this letter nor any provision hereof shall be amended, modified, waived or discharged orally or by course of conduct, but only by
a written agreement signed by the parties hereto. 

  

	 	12.	Headings. The division of this letter into sections and the insertion of headings are for convenience of reference only and shall not affect the construction or
interpretation of this letter. 

  

	 	13.	Successors and Assigns. This letter shall be binding upon and inure to the benefit of and be enforceable by the Agent, the Tranche B Agent, the US Lenders, the
US Borrowers and the Obligors and their respective successors and assigns. The US Borrowers and the Obligors may not assign their respective rights under this letter without the prior written consent of the Agent, the Tranche B Agent and the US
Lenders. 

  

 Page 5 

	 	14.	Partial Invalidity. If any provision of this letter is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this letter
as a whole, but this letter shall be construed as though it did not contain the particular provision held to be invalid or unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be
permitted by applicable law. 

  

	 	15.	Acceptance. If the foregoing correctly sets out our agreement, please indicate your acceptance of this letter by signing below and returning an executed copy to
us by no later than 5:00 p.m. on August 4, 2009 (the “Effective Date”). If not so signed and returned to us by all parties hereto on the Effective Date, this letter shall be null and void. 

  

											
		 	 Yours truly,
	 		 	
				
		 	REVOLVING LENDER AND AGENT:	 		 	
				
		 	 WACHOVIA CAPITAL FINANCE
 CORPORATION (CENTRAL)
	 		 	
					
		 	 By:
	 	
 

	 		 	
		 		 	 Name:
	 	Carmela Massari	 		 	
		 		 	 Title:
	 	First Vice President	 		 	
		 		 		 	 Wachovia Capital Finance Corporation
 (Canada)
	 		 	
					
		 	 By:
	 	  
	 		 	
		 		 	 Name:
	 		 		 	
		 		 	 Title:
	 		 		 	

  

 Page 6 

											
		 	 Agreed this 4th day of August 2009.
	 		 	
				
		 	TRANCHE B LENDER AND TRANCHE B AGENT:	 		 	
				
		 	EXPORT DEVELOPMENT CANADA	 		 	
					
		 	 By:
	 	  
	 		 	
		 		 	 Name:
	 		 		 	
		 		 	 Title:
	 		 		 	
					
		 	 By:
	 	  
	 		 	
		 		 	 Name:
	 		 		 	
		 		 	 Title:
	 		 		 	

  

 Page 7 

															
		 	 Agreed this 4th day of August 2009.
	 		 	
				
		 	 US BORROWER:
	 		 	 US BORROWER:

				
		 	SMTC MANUFACTURING CORPORATION OF CALIFORNIA	 		 	SMTC MANUFACTURING CORPORATION OF MASSACHUSETTS
						
		 	 By:
	 	
 

	 		 	 By:
	 	
 

		 		 	 Name:
	 	 Jane Todd
	 		 		 	 Name:
	 	 Jane Todd

		 		 	 Title:
	 	 CFO
	 		 		 	 Title:
	 	 CFO

						
		 	 By:
	 	
 

	 		 	 By:
	 	
 

		 		 	 Name:
	 	 John Caldwell
	 		 		 	 Name:
	 	 John Caldwell

		 		 	 Title:
	 	 CEO
	 		 		 	 Title:
	 	 CEO

						
		 	 US BORROWER:
	 		 		 		 	
						
		 	SMTC MEX HOLDINGS, INC.	 		 		 		 	
							
		 	 By:
	 	
 

	 		 		 		 	
		 		 	 Name:
	 	 Jane Todd
	 		 		 		 	
		 		 	 Title:
	 	 CFO
	 		 		 		 	
							
		 	 By:
	 	
 

	 		 		 		 	
		 		 	 Name:
	 	 John Caldwell
	 		 		 		 	
		 		 	 Title:
	 	 CEO
	 		 		 		 	

  

 Page 8 

 OBLIGORS: 
 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 US Loan Agreement; 

  

	 	(b)	acknowledges and confirms that such Obligor has received a copy of the US Loan Agreement and this letter and understands and agrees to the terms thereof;

  

	 	(c)	acknowledges and confirms that the representations and warranties set forth in the Financing Agreements to which it is a party continue to be true and correct as of the
date hereof; and 

  

	 	(d)	acknowledges and confirms that it is in compliance with the covenants set forth in the Financing Agreements to which it is a party as of the date hereof.

 Dated as of the 4th day of August, 2009. 
  

															
		 	SMTC CORPORATION	 		 	SMTC HOLDINGS, LLC
						
		 	 By:
	 	
 

	 		 	 By:
	 	
 

		 		 	 Name:
	 	 Jane Todd
	 		 		 	 Name:
	 	 Jane Todd

		 		 	 Title:
	 	 CFO
	 		 		 	 Title:
	 	 CFO

						
		 	 By:
	 	
 

	 		 	 By:
	 	
 

		 		 	 Name:
	 	 John Caldwell
	 		 		 	 Name:
	 	 John Caldwell

		 		 	 Title:
	 	 CEO
	 		 		 	 Title:
	 	 CEO

				
		 	HTM HOLDINGS, INC.	 		 	RADIO COMPONENTES DE MEXICO, S.A. DE C.V.
						
		 	 By:
	 	
 

	 		 	 By:
	 	
 

		 		 	 Name:
	 	 Jane Todd
	 		 		 	 Name:
	 	 Jane Todd

		 		 	 Title:
	 	 CFO
	 		 		 	 Title:
	 	 CFO

						
		 	 By:
	 	
 

	 		 	 By:
	 	
 

		 		 	 Name:
	 	 John Caldwell
	 		 		 	 Name:
	 	 John Caldwell

		 		 	 Title:
	 	 CEO
	 		 		 	 Title:
	 	 CEO

  

 Page 9 

											
				
		 	SMTC DE CHIHUAHUA, S.A. DE C.V.	 		 	
					
		 	 By:
	 	
 

	 		 	
		 		 	 Name:
	 	 Jane Todd
	 		 	
		 		 	 Title:
	 	 CFO
	 		 	
					
		 	 By:
	 	
 

	 		 	
		 		 	 Name:
	 	 John Caldwell
	 		 	
		 		 	 Title:
	 	 CEO
	 		 	

  

 Page 10 

 SCHEDULE 8.18 
 EBITDA CALCULATIONS 
 [NTD: See attached.]

  

 Page 11 

																								
	 SMTC
 EBITDA
	 	(US$)	  	A
Actual
2008	 	 	B
Plan
2009	 	 	C
85%
plan	 	 	D
Rolling 12-mth
2009
	  	E
Rolling 12-mth
adj
non
qtr mths	  	F
Covenant
	 Jan
	 		  	$	(1,016	) 	 	$	(461	) 	 	$	(530	) 	 	$	6,383	  	$	5,883	  	$	5,900
	 Feb
	 		  	 	30	  	 	 	107	  	 	 	91	  	 	 	6,444	  	 	6,194	  	 	6,200
	 Mar
	 		  	 	3,316	  	 	 	347	  	 	 	295	  	 	 	3,423	  	 	3,423	  	 	3,400
	 Apr
	 		  	 	(475	) 	 	 	233	  	 	 	198	  	 	 	4,096	  	 	3,366	  	 	3,400
	 May
	 		  	 	107	  	 	 	466	  	 	 	396	  	 	 	4,385	  	 	4,135	  	 	4,200
	 Jun
	 		  	 	1,300	  	 	 	698	  	 	 	593	  	 	 	3,678	  	 	3,678	  	 	3,700
	 Jul
	 		  	 	(950	) 	 	 	360	  	 	 	306	  	 	 	4,934	  	 	4,204	  	 	4,200
	 Aug
	 		  	 	1,187	  	 	 	600	  	 	 	510	  	 	 	4,257	  	 	4,007	  	 	4,000
	 Sep
	 		  	 	1,212	  	 	 	693	  	 	 	589	  	 	 	3,634	  	 	3,634	  	 	3,700
	 Oct
	 		  	 	(589	) 	 	 	390	  	 	 	332	  	 	 	4,555	  	 	3,816	  	 	3,800
	 Nov
	 		  	 	371	  	 	 	394	  	 	 	335	  	 	 	4,519	  	 	4,269	  	 	4,300
	 Dec
	 		  	 	1,404	  	 	 	759	  	 	 	645	  	 	 	3,760	  	 	3,760	  	 	3,800
								
	 Total
	 		  	$	5,897	  	 	$	4,586	  	 	$	3,760	  	 	$	3,760	  	$	3,760	  	$	3,800
								
	 Per 2008 10 K
	 		  	$	5,897	  	 				 				 			  			  		
								
	 Jan 2010
	 		  				 	$	380	  	 	$	332	  	 	$	4,680	  	$	4,180	  	$	4,200
	 Feb 2010
	 		  				 	 	394	  	 	 	335	  	 	 	4,983	  	 	4,733	  	 	4,700
	 Mar 2010
	 		  				 	 	759	  	 	 	645	  	 	 	5,447	  	 	5,447	  	 	5,500

 Note: 
 If financial covenant is not reset by April 10, 2010, April test will be FCCR 1.25:1 
 Column A represents actual EBITDA for 2008 retrieved from client’s projection model and total matched to 2008 10-K 
 Column B represents EBITDA per 2009 projections 
 Column C represents 85% of 2009 projected EBITDA

 Column D represents rolling EBITDA (A and C) 
 Column E is the same as D except that non-qtr month ends are lower than in D-QTR end periods are equal 
 Column F covenant (rounded)Letter of Amendment dated December 4, 2009

 Exhibit 10.58 
 Wachovia Capital Finance Corporation (Canada) 
 40 King Street West 
 Suite 2500 
 Toronto, ON M5H 3Y2 
  

					
	

	  	December 4, 2009	  	

 VIA EMAIL 
 SMTC Manufacturing Corporation of Canada/ 
 Societe de Fabrication SMTC du Canada 
 635 Hood Road 
 Markham, Ontario L3R 4N6 
 Dear Ms. Jane Todd: 
  

	 	Re:	Wachovia Capital Finance Corporation (Canada) and SMTC Manufacturing Corporation of Canada/Societe de Fabrication SMTC du Canada 

Reference is made to the Second Amended and Restated Canadian Loan Agreement dated as of August 7, 2008 as amended
by letter agreement dated November 19, 2008, April 2, 2009 and August 4, 2009 (as amended, modified, supplemented, extended, renewed, restated or replaced from time to time, the “Canadian Loan Agreement”) between
Wachovia Capital Finance Corporation (Canada), as the Revolving Lender and the Agent, and SMTC Manufacturing Corporation of Canada/Societe de Fabrication STMC du Canada, as the Canadian Borrower. 
  

	 	1.	Definitions. In this letter, unless otherwise defined or the context otherwise requires, all capitalized terms shall have the respective meanings specified in
the Canadian Loan Agreement. 

  

	 	2.	Amendment to Canadian Loan Agreement. 

  

	 	(a)	This letter is an amendment to the Canadian Loan Agreement. Unless the context of this letter otherwise requires, the Canadian Loan Agreement and this letter shall be
read together and shall have effect as if the provisions of the Canadian Loan Agreement and this letter were contained in one agreement. The term “Agreement” when used in the Canadian Loan Agreement means the Canadian Loan Agreement as
amended by this letter, together with all amendments, modifications, supplements, extensions, renewals, restatements and replacements thereof from time to time. 

  

	 	(b)	The Canadian Loan Agreement is amended as follows: 

  

	 	(i)	Section 8.25 “Maximum Unfunded Capital Expenditures” of the Canadian Loan Agreement is deleted and replaced with: 

  

	 	“8.25	Maximum Unfunded Capital Expenditures 

 The Canadian Borrower shall ensure that SMTC Corporation and its
Subsidiaries do not, directly or indirectly, make or commit to make, whether through purchase, capital leases or otherwise, unfunded Capital Expenditures in an aggregate amount in excess of US$1,600,000 for fiscal year 2009 of SMTC Corporation.

 It is the intention of the Agent and the Canadian Borrower to reset in writing the Maximum Unfunded Capital
Expenditures covenant in Section 8.25 by July 10, 2010 and if the Agent and the Canadian Borrower cannot agree on such reset by July 10, 2010 then the maximum unfunded capital expenditure amount above shall be US$500,000 plus
one hundred (100%) percent of the unused portion of the permitted Capital Expenditures amount for fiscal year 2009 for fiscal year 2010 and US$500,000 for each fiscal year of SMTC Corporation on a go forward basis.”. 
  

	 	(c)	The effective date of the amendment to the Canadian Loan Agreement provided in this letter is December 4, 2009. 

  

	 	3.	No Novations. Nothing in this letter, or in the Canadian Loan Agreement when read together with this letter, shall constitute a novation, payment, re-advance or
reduction or termination in respect of any Obligations. 

  

	 	4.	Financing Agreement. This letter is a Financing Agreement. 

  

	 	5.	Expenses. The Canadian Borrower shall pay all fees, expenses and disbursements including, without limitation, legal fees, incurred by or payable to the Agent and
Revolving Lender in connection with the preparation, negotiation, completion, execution, delivery and review of this letter and all other documents and instruments arising therefrom and/or executed in connection therewith. 

 

	 	6.	Continuance of Canadian Loan Agreement and Security. 

  

	 	(a)	The Canadian Loan Agreement, as amended by this letter, 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 herein. 

  

	 	(b)	Each of the Canadian Borrower and the Obligors hereby acknowledges, confirms and agrees that: 

  

	 	(i)	all security delivered by the Canadian Borrower and the Obligors in connection with the Canadian Loan Agreement secures the payment of all of the Obligations including,
without limitation, the obligations arising under the Canadian Loan Agreement, as amended by the terms of this letter; and 

  

	 	(ii)	the Agent and the Canadian Lenders shall continue to have valid, enforceable and perfected first priority liens upon the collateral described in the Financing
Agreements, subject only to liens expressly permitted pursuant to the Canadian Loan Agreement. 

  

 Page 2 

	 	(c)	To induce the Agent and the Revolving Lender to enter into this letter, each of the Canadian Borrower and the Obligors hereby represent and warrant to each of the Agent
and the Revolving Lender as follows, which representations and warranties shall survive the execution and delivery of this letter: 

  

	 	(i)	the Canadian Borrower and the Obligors are in compliance with all covenants in the Financing Agreements; 

  

	 	(ii)	all the representations and warranties set out in the Financing Agreements are true and accurate; 

  

	 	(iii)	no Default or Event of Default has occurred or is continuing; 

  

	 	(iv)	no material adverse change has occurred with respect to any of the Canadian Borrower or the Obligors since the date of the Agent’s latest field examination and no
change or event has occurred which would have a material adverse effect on any of the Canadian Borrower or the Obligors; 

  

	 	(v)	the execution delivery, delivery and performance of this letter and the transactions contemplated hereunder are all within its powers, have been duly authorized by it
and are not in contravention of law or the terms of its organizational documents or any indenture, agreement or undertaking to which it is a party or by which it or its property is bound; 

  

	 	(vi)	it has duly executed and delivered this letter; and 

  

	 	(vii)	this letter constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms. 

  

	 	7.	Counterparts. This letter may be executed in any number of separate original, facsimile or pdf 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. 

  

	 	8.	Governing Law. The validity, interpretation and enforcement of this letter 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. 

  

	 	9.	Further Assurances. At the request of any of the Agent or the Revolving Lender at any time and from time to time, each of the Canadian Borrower and the Obligors
shall, at their expense, duly execute and deliver, or cause to be duly executed and delivered, such further agreements, documents and instruments, and do or cause to be done such further acts as may be requested by any of the Agent or the Revolving
Lender to effectuate the provisions or purposes of this letter. 

  

	 	10.	Amendments and Waivers. Neither this letter nor any provision hereof shall be amended, modified, waived or discharged orally or by course of conduct, but only by
a written agreement signed by the parties hereto. 

  

 Page 3 

	 	11.	Headings. The division of this letter into sections and the insertion of headings are for convenience of reference only and shall not affect the construction or
interpretation of this letter. 

  

	 	12.	Successors and Assigns. This letter shall be binding upon and inure to the benefit of and be enforceable by the Agent, the Revolving Lender, the Canadian
Borrower and the Obligors and their respective successors and assigns, The Canadian Borrower and the Obligors may not assign their respective rights under this letter without the prior written consent of the Agent and the Revolving Lender,

  

	 	13.	Partial Invalidity. If any provision of this letter is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this letter
as a whole, but this letter shall be construed as though it did not contain the particular provision held to be invalid or unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be
permitted by applicable law. 

  

	 	14.	Acceptance. If the foregoing correctly sets out our agreement, please indicate your acceptance of this letter by signing below and returning an executed copy to
us by no later than 5:00 p.m. on December 4, 2009 (the “Effective Date”). If not so signed and returned to us by all parties hereto on the Effective Date, this letter shall be null and void. 

  

 Page 4 

											
		 	Yours truly,	 		 	
				
		 	REVOLVING LENDER AND AGENT:	 		 	
				
		 	WACHOVIA CAPITAL FINANCE	 		 	
		 	CORPORATION (CANADA)	 		 	
					
		 	By:	 	
 

	 		 	
		 		 	Name:	 	Carmela Massari	 		 	
		 		 	Title:	 	First Vice President Wachovia Capital Finance Corporation (Canada)	 		 	
					
		 	 By:
	 	  
	 		 	
		 		 	 Name:
	 		 		 	
		 		 	 Title:
	 		 		 	
				
		 	 Agreed this 4th day of December 2009.
	 		 	
				
		 	 CANADIAN BORROWER:
	 		 	
				
		 	 SMTC MANUFACTURING
 CORPORATION OF CANADA/SOCIETE
 DE FABRICATION SMTC DU CANADA
	 		 	
					
		 	 By:
	 	
 

	 		 	
		 		 	 Name:
	 	J Todd	 		 	
		 		 	 Title:
	 	Secretary & Treasurer	 		 	
					
		 	 By:
	 	  
	 		 	
		 		 	 Name:
	 		 		 	
		 		 	 Title:
	 		 		 	

  

 Page 5 

 OBLIGORS: 
 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 Canadian Loan Agreement; 

  

	 	(b)	acknowledges and confirms that such Obligor has received a copy of the Canadian Loan Agreement and this letter and understands and agrees to the terms thereof;

  

	 	(c)	acknowledges and confirms that the representations and warranties set forth in the Financing Agreements to which it is a party continue to be true and correct as of the
date hereof; and 

  

	 	(d)	acknowledges and confirms that it is in compliance with the covenants set forth in the Financing Agreements to which it is a party as of the date hereof.

 Dated as of the 4th day of December, 2009. 
  

															
		 	SMTC CORPORATION	 		 	SMTC HOLDINGS, LLC
						
		 	By:	 	
 

	 		 	By:	 	
 

		 		 	Name:	 	J Todd	 		 		 	Name:	 	
		 		 	Title:	 	Secretary & Treasurer	 		 		 	Title:	 	
						
		 	 By:
	 	  
	 		 	By:	 	  

		 		 	 Name:
	 		 		 		 	Name:	 	
		 		 	 Title:
	 		 		 		 	Title:	 	
				
		 	HTM HOLDINGS, INC.	 		 	RADIO COMPONENTES DE MEXICO, S.A. DE C.V.
						
		 	 By:
	 	
 

	 		 	By:	 	
 

		 		 	 Name:
	 		 		 		 	Name:	 	
		 		 	 Title:
	 		 		 		 	Title:	 	
						
		 	 By:
	 	  
	 		 	By:	 	  

		 		 	 Name:
	 		 		 		 	Name:	 	
		 		 	 Title:
	 		 		 		 	Title:	 	

  

 Page 6 

															
		 	SMTC DE CHIHUAHUA, S.A. DE C.V.	 		 	SMTC NOVA SCOTIA COMPANY
						
		 	By:	 	
 

	 		 	By:	 	
 

		 		 	Name:	 	J Todd	 		 		 	Name:	 	
		 		 	Title:	 	Secretary & Treasurer	 		 		 	Title:	 	
						
		 	By:	 	  
	 		 	By:	 	  

		 		 	Name:	 		 		 		 	Name:	 	
		 		 	Title:	 		 		 		 	Title:	 	
				
		 	SMTC MANUFACTURING CORPORATION OF CALIFORNIA	 		 	SMTC MEX HOLDINGS, INC.
						
		 	By:	 	
 

	 		 	By:	 	
 

		 		 	Name:	 		 		 		 	Name:	 	
		 		 	Title:	 		 		 		 	Title:	 	
						
		 	By:	 	  
	 		 	By:	 	  

		 		 	Name:	 		 		 		 	Name:	 	
		 		 	Title:	 		 		 		 	Title:	 	
						
		 	SMTC MANUFACTURING CORPORATION OF MASSACHUSETTS	 		 		 		 	
							
		 	By:	 	
 

	 		 		 		 	
		 		 	Name:	 		 		 		 		 	
		 		 	Title:	 		 		 		 		 	
							
		 	By:	 	  
	 		 		 		 	
		 		 	Name:	 		 		 		 		 	
		 		 	Title:	 		 		 		 		 	

  

 Page 7

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