Document:

EXHIBIT 10.56.1

Amended and Restated Committed
Account Receivable Purchase Agreement

Dated              01
April 2005 and amended and restated on 14 July, 2006

Sanmina-SCI
Magyarorszag Elektronikai Gyarto Kft

(Supplier)

Citibank
International Plc

(Bank)

 

Contents

 

	
  1. Definitions. Unless otherwise expressly defined herein, all
  capitalized terms used herein and defined in the Credit Agreement shall be
  used herein as so defined. Unless otherwise expressly stated herein, all
  Section and Article references herein shall refer to Sections and Articles of
  the Credit Agreement.

  	
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  2. Amendment to Definitions. (a) Section 1.1 is
  amended by amending and restating the definition of Current Book Value in its
  entirety as follows:

  	
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  3. Amendment to Section 6.2. Section 6.2 is
  amended by deleting the word “and” at the end of clause (dd) thereof,
  deleting the period at the end of clause (ee) thereof and replacing it with a
  “; and” and by adding a new clause (ff) as follows:

  	
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  4. Conditions Precedent. This Amendment shall
  become effective upon the satisfaction of each of the following conditions
  precedent:

  	
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  5. Representations and Warranties. The Company
  hereby represents and warrants to the Administrative Agent and the Lenders
  that, as of the date hereof and after giving effect to this Amendment, (a)
  all representations and warranties set forth in the Credit Agreement are true
  and correct in all material respects as if made again on and as of such date
  (except for those which by their terms specifically refer to an earlier date,
  in which case such representations and warranties shall be true and correct
  in all material respects as of such earlier date), (b) no Default or Event of
  Default has occurred and is continuing and (c) the Credit Agreement (as
  amended by this Amendment) and all other Credit Documents are and remain
  legal, valid, binding and enforceable obligations of the Credit Parties in
  accordance with the terms thereof except as may be limited by bankruptcy,
  insolvency, reorganization, moratorium or similar laws relating to or
  limiting creditors’ rights generally or by equitable principles (regardless
  of whether enforcement is sought in equity or at law).

  	
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  6. Survival of Representations and Warranties.
  All representations and warranties made in this Amendment shall survive the
  execution and delivery of this Amendment, and no investigation by the
  Administrative Agent or the Lenders shall affect the representations and
  warranties or the right of the Administrative Agent or the Lenders to rely
  upon them. If any representation or warranty made in this Amendment is false
  in any material respect when made, then such shall constitute an Event of
  Default under the Credit Agreement.

  	
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  7. Reference to Agreement. Each of the Credit
  Documents, including the Credit Agreement, and any and all other agreements,
  documents or instruments now or hereafter executed and/or delivered pursuant
  to the terms hereof or pursuant to the terms of the Credit Agreement as
  amended hereby, are hereby amended so that any reference in such Credit
  Documents to the Credit Agreement, whether direct or indirect, shall mean a
  reference to the Credit Agreement as amended hereby. This Amendment shall
  constitute a Credit Document.

  	
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  8. Costs and Expenses. The Company shall pay on
  demand all reasonable costs and expenses of the Administrative Agent
  (including the reasonable fees, costs and expenses of counsel to the
  Administrative Agent) incurred in connection with the preparation, execution
  and delivery of this Amendment.

  	
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  9. Governing Law. This Amendment shall be
  construed in accordance with and governed by the laws of the State of New
  York (including Sections 5-1401 and 5-1402 of the General Obligations Law of
  the State of New York).

  	
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  10. Execution. This Amendment may be executed in
  any number of counterparts and by different parties hereto in separate
  counterparts, each of which when so executed shall be deemed to be an

  	
   

  

 

 

 

	
  original and all of which taken together shall constitute one and the
  same agreement. Delivery of an executed counterpart of a signature page to
  this Amendment by telecopier shall be effective as delivery of an manually
  executed counterpart of this Amendment.

  	
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  11. Limited Effect. This Amendment relates only
  to the specific matters expressly covered herein, shall not be considered to
  be a waiver of any rights or remedies any Lender or Agent may have under the
  Credit Agreement or under any other Credit Document, and shall not be
  considered to create a course of dealing or to otherwise obligate in any
  respect any Lender or Agent to execute similar or other consents under the
  same or similar or other circumstances in the future.

  	
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  12. Ratification by Guarantors. Each of the
  Guarantors acknowledges that its consent to this Amendment is not required,
  but each of the undersigned nevertheless does hereby agree and consent to
  this Amendment and to the documents and agreements referred to herein. Each
  of the Guarantors agrees and acknowledges that (a) notwithstanding the
  effectiveness of this Amendment, such Guarantor’s Guaranty shall remain in
  full force and effect without modification thereto and (b) nothing herein
  shall in any way limit any of the terms or provisions of such Guarantor’s
  Guaranty or any other Credit Document executed by such Guarantor (as the same
  may be amended from time to time), all of which are hereby ratified,
  confirmed and affirmed in all respects. Each of the Guarantors hereby agrees
  and acknowledges that no other agreement, instrument, consent or document
  shall be required to give effect to this Section 12. Each of the Guarantors
  hereby further acknowledges that Company, Administrative Agent, Collateral
  Agent and any Lender may from time to time enter into any further amendments,
  modifications, terminations and/or waivers of any provision of the Credit
  Documents without notice to or consent from such Guarantor and without
  affecting the validity or enforceability of such Guarantor’s Guaranty or
  giving rise to any reduction, limitation, impairment, discharge or
  termination of such Guarantor’s Guaranty.

  	
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  1

  	
  Definitions and Interpretation

  	
  5

  
	
   

  	
   

  	
   

  
	
  Interpretation

  	
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  2

  	
  The Facility

  	
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  3

  	
  Conditions Precedent

  	
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  4

  	
  Purchase and Sale of Account Receivable

  	
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  5

  	
  Representations and Warranties

  	
  9

  
	
   

  	
   

  	
   

  
	
  6

  	
  Undertakings

  	
  10

  
	
   

  	
   

  	
   

  
	
  7

  	
  Buy back of Account Receivable

  	
  12

  
	
   

  	
   

  	
   

  
	
  8

  	
  Indemnities

  	
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  9

  	
  Termination Events

  	
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  10

  	
  General

  	
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  11

  	
  Termination

  	
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  12

  	
  Facility Fee

  	
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  13

  	
  Notices

  	
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  14

  	
  Assignments

  	
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  15

  	
  Governing Law

  	
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  Schedule 1 – Supplier Pricing Schedule

  	
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  Schedule 2 – Purchase Pack

  	
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  Schedule 3 – Condition Precedent Documents

  	
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Committed Account Receivable Purchase
Agreement made on 01 April 2005 as amended and restated on 14 July, 2006

Between

(1)                                 Sanmina-SCI Magyarorszag Elektronikai Gyarto Kft (the
Supplier) of H-2800 Tatabánya,
Kóta Jozsef u. hrzs.11809/4 with court registered number 11-09-006625; and

(2)                                 Citibank International Plc (the Bank) acting through its office at
Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB.

Whereas

A             From time to time the
Supplier enters into commercial trade transactions with IBM Singapore Pte Ltd
of 9 Changi Business Park Central 1, The IBM Place, Singapore 486048 (the Buyer) for the sale of goods and/or
services, resulting in Account Receivables (as hereinafter defined) owed by the
Buyer to the Supplier; and

B             The Supplier wishes
to assign to the Bank from time to time, and the Bank shall have assigned to
it, such Account Receivables subject to the terms and conditions set forth in
this Agreement.

Now,
therefore, the Supplier and the Bank agree as follows:

It
is agreed:

1                                        Definitions and Interpretation

Account Receivable means any indebtedness
of the Buyer to the Supplier, evidenced by an invoice, which indebtedness shall
include the right to receive payment of interest or finance charges or other
liabilities of the Buyer under the relevant contract to which such invoice
relates.

Affiliate means, in relation to any person,
a Subsidiary of that person or a Holding Company of that person or any other
Subsidiary of that Holding Company.

Alternative Sanmina Agreement means the
amended and restated committed account receivable purchase agreement entered
into between the Bank and Sanmina-SCI UK Limited and dated on or about the date
of this Agreement.

Amendment and Restatement Deed means the
deed of amendment and restatement dated 14 July, 2006 and made between the
Supplier and the Bank, amending and restating the terms of this Agreement.

Business Day means a day on which banks are
open for business in London and the principal financial centre of each relevant
currency.

Charge Over Account means the charge over
Collection Account granted by the Supplier in favour of the Bank and dated on
or about 01 April 2005.

Collection Account means the interest
bearing (at the overnight rates) account of the Supplier held at Citibank N.A.

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with
account number 11096540, Sort Code 18-50-08, SWIFT-CITIGB2L and which has been
charged by way of first fixed charge in favour of the Bank.

Commercial Contract means the contract or
contracts entered into between the Supplier and the Buyer in respect of
commercial trade transactions, the Account Receivables of which have been or
will be purchased by the Bank pursuant to this Agreement.

Cut Off Date means in respect of any
Account Receivable purchased by the Bank which has not been paid in full on the
Maturity Date for such Account Receivable the earlier of:

(a)          the date
falling 30 days after such Maturity Date (or if such a day is not a Business
Day the next following Business Day); or

(b)         the date
falling on which the Buyer makes a payment in full of such Account Receivable.

Default means:

(a)          a
Termination Event; or

(b)         any event
or circumstance which would (with the expiry of a grace period, the giving of
notice, the satisfaction of any condition, the making of any determination or
any combination of any of them) become a Termination Event;

Deferred Amount means, in respect of an
Account Receivable, any amount received from the Buyer in respect of such
Account Receivable which is in excess of the Purchase Price.

Discount Rate means the rate used by the
Bank from time to time to calculate the Purchase Price of any Account
Receivable.

Facility Fee means the facility fee payable
in accordance with Clause 12.

Holding Company means, in relation to a
company or corporation, any other company or corporation in respect of which it
is a Subsidiary.

Insolvency Event means, in relation to the
Buyer, that any of the following has occurred:

(a)                                  the
Buyer shall generally not pay its debts as such debts become due, or shall
admit in writing its inability to pay its debts generally, or any formal
corporate action, legal proceedings or other procedure or step is taken in
relation to (i) the suspension of payments, a moratorium of any indebtedness,
winding-up, dissolution, administration or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of the Buyer other than a
solvent liquidation or reorganisation of the Buyer; (ii) a composition,
assignment or arrangement with the creditors of the Buyer as a whole; (iii) the
appointment of a liquidator (other than in respect of a solvent liquidation of
the Buyer), receiver, administrator, administrative receiver, compulsory
manager or other similar officer in respect of the Buyer or any of its assets;
provided, that any such event arising by reason of currency restrictions or
foreign political restrictions or regulations beyond the control of the
Supplier or the Buyer shall not be deemed an “Insolvency Event” hereunder; or

(b)                                 any
procedure or step analogous to any of the foregoing is taken in any
jurisdiction.

Material Adverse Change means any event or
circumstance which (when taken alone or together with any

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previous
event or circumstance) has, or (in the opinion of the Bank formed in good
faith) could reasonably be expected to have, a material adverse change on all or
any of:

(a)          the
assets, business or financial condition of the Supplier or the Buyer;

(b)         the ability
of the Supplier and the Buyer to perform their obligations under this Agreement
and the Commercial Contract;

(c)          the
validity or enforceability of this Agreement, the Commercial Contract or the
Purchase Pack or the rights of the Bank under any of them.

Maturity
Date means, in respect of an Account Receivable, the date on
which such Account Receivable becomes due and payable by the Buyer as specified
in the Purchase Pack.

Pricing
Schedule shall have the meaning set out in Clause 0.

Purchase
Date means in relation to any Account Receivable the date
when the Bank is due to pay the Purchase Price in respect of that Account
Receivable.

Proposed
Purchase Date means in relation to any Account Receivable the
date specified as “Purchase Date” in any Purchase Pack in relation to such
Account Receivable.

Purchase
Pack means, in relation to each Account Receivable, a
document in the form set out in Schedule 2, duly executed by the parties
thereto.

Purchase
Price means in relation to any Account Receivable to be
purchased by the Bank at any time, the purchase price thereof as calculated in
accordance with the Pricing Schedule in force at the time of the purchase of
such Account Receivable by the Bank.

Reconciliation
Date means a Thursday in any week (or, if such day is not a
Business Day, the immediately following Business Day).

Relevant Percentage
means 95.5%, subject to adjustment by the Bank in accordance with Clause 4.4.

Saleable
Account Receivable means an Account Receivable the subject of
a Purchase Pack whose Maturity Date falls at least 5 Business Days after the
Proposed Purchase Date in respect of such Account Receivable.

Subsidiary
means, in relation to any company, corporation, undertaking or partnership, a
company, corporation, undertaking or partnership:

(A)                              which
is controlled, directly or indirectly, by the first mentioned company,
corporation, undertaking or partnership;

(B)                                more
than half the issued share capital of which is beneficially owned, directly or
indirectly by the first mentioned company, corporation, undertaking or
partnership; or

(C)                                which
is a Subsidiary of another Subsidiary of the first mentioned company,
corporation, undertaking or partnership,

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and for this purpose, a
company, corporation, undertaking or partnership shall be treated as being
controlled by another if that other company, corporation, undertaking or
partnership is able to direct its affairs and/or to control the composition of
its board of directors or equivalent body.

Termination
Date means 13 July, 2007.

Termination
Event means any event or circumstance described in Clause 9
(Termination Events);

Total
Amount means one hundred and fifty million United States
Dollars (US$150,000,000).

Total
Purchased Amount means the aggregate of (i) the Purchase
Price of all outstanding Account Receivables purchased by the Bank under this
Agreement and (ii) the Purchase Price of all outstanding Account Receivables
purchased by the Bank under the Alternative Sanmina Agreement (as each such
term is defined in the Alternative Sanmina Agreement).

Interpretation

Any additional capitalised terms are defined in
Schedule 1 to this Agreement.

Unless a contrary indication appears, any reference in
this Agreement to:

(a)          the Supplier and the Bank shall be construed so as to include its successors in
title, permitted assigns and permitted transferees; and

(b)         this Agreement or the Alternative Sanmina Agreement is a reference to this Agreement
or the Alternative Sanmina Agreement as amended, novated, supplemented,
extended or restated from time to time.

2                                        The Facility

Subject to the terms and conditions of this Agreement, the Supplier may
from time to time offer to assign and sell Account Receivables to the Bank by
submitting a Purchase Pack to the Bank and the Bank shall acquire such Account
Receivables.

3                                        Conditions Precedent

3.2                                Initial conditions precedent

The Supplier may not
deliver a Purchase Pack to the Bank unless the Bank has received all of the
documents and other evidence listed in Schedule 3 (Conditions Precedent) in form and substance satisfactory to
the Bank.  The Bank shall notify the
Supplier promptly upon being so satisfied.

3.3                                Further conditions precedent

The Bank will only be
obliged to comply with Clause 4 (Purchase
and sale of Account Receivable) if on the date of the submission of
the Purchase Pack and on the Proposed Purchase Date for the relevant Account
Receivables:

(a)                                 no Default is continuing or would result from
the proposed purchase of the Account Receivables;

(b)                                the representations to be made by the
Supplier and repeated under Clause 5 (Representations
and Warranties) are true in all material respects;

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(c)                                 each of the Account Receivables the subject
of the relevant Purchase Pack is a Saleable Account Receivable; and

(d)                                the Total Purchased Amount is not greater
than the Total Amount and shall not be greater than the Total Amount
immediately after the purchase of the relevant Account Receivables.

4                                        Purchase and Sale of Account Receivable

4.1                                The Bank shall (subject to the terms of the
Pricing Schedule from time to time in force) purchase and the Supplier shall,
as legal and beneficial owner, sell such Account Receivable and the Bank shall
pay the Purchase Price in respect of such Account Receivable to the Supplier
into the following account:- Account Number 10486922 with Citibank N.A. (Sort
Code 18-50-08 SWIFT - CITIGB2L) or to such other account or accounts with any
such bank or banks as the Supplier may notify the Bank in writing from time to
time, on the date specified in the Purchase Pack as the Proposed Purchase Date
for such Account Receivable.

4.2                                The Bank will provide to the Supplier a
pricing schedule from time to time that sets out the method used to calculate
Purchase Prices and other fees and charges (the Pricing Schedule).  The Bank’s agreement to purchase Account
Receivables hereunder shall be subject to the terms of the Pricing
Schedule.  Each Pricing Schedule shall be
valid for 12 months from the effective date specified therein.  The initial Pricing Schedule is set forth as
Schedule 1 hereto; provided that, in the event that there is an adverse or
beneficial change to the credit rating of International Business Machines
Corporation, the ultimate parent of the Buyer, as determined by either Standard
& Poor’s or Moody’s, the Bank may at any time, upon 30 days written notice
to the Supplier, amend the terms of the Pricing Schedule, provided that any
such change shall not affect the Purchase Price applicable to purchases of Account
Receivable whose Proposed Purchase Date falls within such notice period and
further provided that in the event of any such change to the Pricing Schedule
the Supplier may at any time, upon 30 days written notice to the Bank,
terminate this Agreement.

4.3                                Any Deferred Amount received from the Buyer
in respect of any Account Receivable purchased by the Bank under this Agreement
shall be for the benefit of the Supplier.

4.4                                The Bank (acting reasonably) shall be able to
adjust the Relevant Percentage from time to time following consultation with
the Supplier, provided that if the Purchase Price relating to an Account
Receivable purchased by the Bank under this Agreement would be less than 95
percent of the Payment Amount of such Account Receivable (the Minimum Level), the Bank shall adjust the Relevant
Percentage to ensure that the Purchase Price does not fall below the Minimum
Level.

5                                        Representations and Warranties

The Supplier hereby makes
the following representations and warranties as of the date hereof, as of each
day a Purchase Pack is delivered hereunder and as of each proposed date for the
purchase of an Account Receivable by the Bank as if made on each such date with
reference to the facts and circumstances then existing (it being understood
that representations and warranties with respect to Account Receivable are made
only with respect to the Account Receivable that are the subject of the
applicable Purchase Pack):

(a)                                 it is duly organised and validly existing
under the laws of Hungary and possesses the capacity to sue or to be sued in
its own name and the power to own its property and assets and carry on its
business as it is now being conducted and it has taken all necessary steps to
authorise the execution of this Agreement and each Purchase Pack and the
transactions contemplated thereby;

(b)                                the contract relating to each Account
Receivable assigned to the Bank is in full force and effect and legal, valid
and binding on the Buyer and the Supplier is not in breach thereof or in
default thereunder that would result in the Buyer being entitled to exercise
any set off rights or counterclaim or to withhold, extend or delay payment of
any such Account Receivable;

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(c)                                 this Agreement and each Purchase Pack
constitute or will, when executed, constitute its legal, valid and binding
obligations enforceable in accordance with its terms and each Purchase Pack
when duly executed is effective to assign the Account Receivables referred to
therein to the Bank;

(d)                                each Account Receivable assigned to the Bank
is freely assignable and constitutes amounts due and payable by the Buyer on
the relevant Maturity Date and each Account Receivable assigned to the Bank
pursuant to a Purchase Pack constitutes an unconditional, legal, valid and
binding obligation of the Buyer and has not, to any extent, been prepaid;

(e)                                 immediately prior to the execution of each
Purchase Pack by the Supplier, the Supplier was the legal and beneficial owner
of each Account Receivable assigned in such Purchase Pack and it has not
assigned, transferred or otherwise disposed of, or created any encumbrance or
security interest over any such Account Receivable, other than to the Bank;

(f)                                   it is not aware of any reason why the Bank
should not receive, the amount due in respect of any Account Receivable
assigned to the Bank in each Purchase Pack;

(g)                                no invoice for amounts due from the Supplier
to the Buyer under or outside the Commercial Contract remains unpaid by the
Supplier for:

(i)                                    in relation to any invoice with a due date of
45 days or more, 15 days after such due date; or

(ii)                                 in relation to any invoice with a due date of
less than 45 days, 60 days from the date on which the relevant invoice is
received by the Supplier,

unless and only to the extent that payment of such invoice is being
contested in good faith and the aggregate amount of invoices so contested under
the Commercial Contract does not exceed 5% of the aggregate amount of all
outstanding invoices for amounts due from the Supplier to the Buyer under or
outside the Commercial Contract at the relevant time; and

(h)                                the Supplier has not received notice from the
Buyer under the Commercial Contract of the Buyer’s intention to exercise its
right to offset valid invoices under the Commercial Contract by amounts due and
owing from the Supplier to the Buyer.

6                                        Undertakings

6.1                                The Supplier hereby agrees and undertakes:

(a)                                 not to create or permit to subsist any
encumbrance over any of the Supplier’s rights, title and interest in and to any
Account Receivable the subject of a Purchase Pack and not to assign, transfer
or otherwise deal with any of its rights in respect of any Account Receivable
the subject of a Purchase Pack;

(b)                                in relation to the Commercial Contract:

(i)                                    to use reasonable and usual care, skill and
forethought in the performance of its obligations under the Commercial
Contract;

(ii)                                 to take all practical measures to prevent or
minimise loss arising in connection with the Commercial Contract;

(iii)                              to promptly notify the Bank upon becoming
aware of any material breach of any Commercial Contract or of any event
materially affecting the performance of the Commercial Contract;

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(c)                                 forthwith to pay any amount received by it in
respect of an Account Receivable to the Bank and pending such payment hold that
amount on trust for the Bank;

(d)                                to assist the Bank in every way to recover
each Account Receivable assigned to the Bank and/or to assist the Bank to
perfect the assignment to the Bank of any Account Receivable in respect of
which the Bank has made payment to the Supplier;

(e)                                 (i) to maintain and implement administrative
and operating procedures and to keep and maintain all documents, books, records
and other information reasonably necessary or advisable for the collection of
all Account Receivables purchased by the Bank or in order to comply in all
material respects with applicable laws and regulations; (ii) to retain all such
records and information relating thereto so long as any Account Receivable
purchased by the Bank remains outstanding; and (iii) to hand copies of such
records and documentation to the Bank promptly on request; and

(f)                                   not to amend (other than by way of extension
on substantially the same terms), cancel or terminate any contract to which any
Account Receivable assigned to the Bank relates and not to, or purport to, terminate,
revoke or vary any term or condition of or extend the Maturity Date of any
Account Receivable assigned to the Bank and to refrain from any action which
might in any way prejudice or limit the Bank’s rights under or in respect of
any Account Receivable assigned to the Bank;

(g)                                to act as agent for the Bank in the
collection of the sums owing under the Account Receivables and to procure that
payments from the Buyer in respect of Account Receivables are made into the
Collection Account.

6.2                                The Supplier hereby irrevocably authorizes
the Bank, in its sole discretion, to file any document or financing statements,
and any amendments thereto, in relation to all or any Account Receivable
purchased by the Bank, without the signature of Supplier, to the extent
permitted by applicable law.  If not so
permitted by applicable law, or in such other circumstances as the Bank may
reasonably request, the Supplier will execute and file any such document,
financing statements, or amendments thereto, and such other instruments or
notices, as may be necessary or appropriate to perfect and maintain the
perfection of the Bank’s ownership interest in such Account Receivable.

6.3                                The Supplier and the Bank hereby acknowledge
and agree that:

(a)                                 irrespective of the assignment of each
Account Receivable to the Bank, the Supplier remains liable to perform all
obligations under the Commercial Contract and the Bank has assumed no liability
to do so;

(b)                                the Bank is and shall be irrevocably and
unconditionally authorised to operate the Collection Account as it sees fit and
in accordance with the terms of the Charge Over Account, subject to the terms
of Clause 6.3(c);

(c)                                 no withdrawal may be made by the Supplier
from the Collection Account.  If the
Supplier provides the Bank with an analysis of a remittance advice from the
Buyer (as may be supported by an allocation prepared by the Supplier showing
the breakdown in such remittance advice between sums in relation to Account
Receivables and sums in relation to other debts owed by the Buyer to the
Supplier),  the Bank shall, upon
reviewing and being satisfied with such analysis of the remittance advice and
allocation, withdraw from the Collection Account for its own benefit such sums
paid by the Buyer by way of discharge of the Account Receivables (other than
the Deferred Amount) and undertakes to immediately thereafter and on the same
day release to an account designated by the Supplier from time to time all
monies from the Collection Account, which do not relate to the Account
Receivables, and the Deferred Amount, as evidenced by such agreed analysis of
the remittance advice and allocation; and

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(d)                                interest accruing on credit balances in the
Collection Account shall be for the benefit of the Supplier.

7                                        Buy back of Account Receivable

7.1                              Failure to Pay

7.1.1                        Notwithstanding the terms of Clause 4 of this Agreement (Purchase and
Sale of Account Receivable) the Supplier and the Bank agree that, in the event
that the Buyer fails to pay any Account Receivable by the Cut Off Date for such
Account Receivable, provided that no Insolvency Event has occurred and is
continuing, the Bank shall be entitled to require the Supplier to purchase such
Account Receivable from the Bank.  The
provisions of Clause 7.2 shall apply during the period from the Maturity Date
to the Cut Off Date for each such Account Receivable.

7.2                              Treatment of Overdue Account
Receivable

Provided
that no Insolvency Event has occurred and is continuing:

7.2.1                        If the Buyer, for any reason whatsoever fails to pay on the Maturity
Date for any Account Receivable purchased by the Bank, in whole or in part, the
amount of such Account Receivable, the Supplier shall pay charges (Discount
Rate Charge) at the relevant Revised Discount Rate calculated in accordance
with the most recent Pricing Schedule on the unpaid amount of any such Account
Receivable (as notified by the Bank to the Supplier), subject as provided in
this Clause. Such Discount Rate Charges shall:

(i)                                    accrue from day to day during each period
from (and including) such Maturity Date to (but excluding) the next
Reconciliation Date and each subsequent period which shall commence forthwith
upon the expiry of the previous period and end (but excluding) on the next
Reconciliation Date provided that if a period would otherwise end on a date
falling after the Cut Off Date in respect of such unpaid Account Receivable,
such period shall instead end on the Cut Off Date; and

(ii)                                 be calculated as if the unpaid amount of such
Account Receivable was repaid on the earlier of (i) the date of actual payment
and (ii) the relevant Cut Off Date.

Discount Rate Charge in
relation to any unpaid Account Receivable shall only accrue up to the Cut Off
Date for such Account Receivable and it shall only be payable by the Supplier
on such Cut Off Date.

7.2.2                       At any time on or after the Cut Off Date and to the extent that any
Account Receivable remains unpaid, the Bank may sell, as legal and beneficial
owner, to the Supplier and the Supplier shall purchase such Account Receivable
and the Bank shall (at the cost and expense of the Supplier) execute such
documents as may be necessary to re-assign any rights the Bank may have in
relation to such Account Receivable to the Supplier and the Supplier shall pay
to the Bank in respect of such Account Receivable an amount equal to and in the
same currency as the unpaid amount of such Account Receivable together with the
Discount Rate Charge calculated in accordance with Clause 7.2.1. Such Cut Off
Date shall be notified by the Bank to the Supplier, but failure to notify shall
not affect the payment obligations of the Supplier hereunder.

7.3                              Default Interest

7.3.1                       In the event that any amount payable by the Supplier pursuant to Clause
7.2 or this Clause 7.3 remains unpaid on the date on which it becomes due and
payable the Bank shall charge and the

 12
 

 

Supplier shall pay interest from time to time on any such unpaid amount
due from the Supplier to the Bank during the period from (and including) the
due date thereof to (but excluding) the date payment is received by the Bank in
full, at a rate equal to the aggregate of (i) the Discount Rate applicable
pursuant to the most recent Pricing Schedule (calculated by reference to such
calculation periods ending on or before the date payment is made in full as the
Bank may select and notify to the Supplier from time to time ) and (ii) 2% per
annum.

7.3.2                       Such interest calculated pursuant to Clause 7.3.1 shall be payable by
the Supplier at the end of each calculation period selected and notified by the
Bank (as referred to above) by reference to which interest is calculated and
shall be billed to the Supplier and paid separately from any other amounts
owing under this Agreement.

8                                        Indemnities

8.1                                The Supplier shall pay to the Bank on demand on a full indemnity basis:

(a)                                 all reasonable costs, charges and expenses
including legal costs, in relation to the enforcement of this Agreement and any
Purchase Pack; and

(b)                                all stamp, documentary, registration or other
like duties or taxes (other than taxes based on Bank’s income), including
withholding taxes and any penalties, additions, fines, surcharges or interest
relating thereto, or any notarial fees which are imposed or chargeable on or in
connection with this Agreement or any Purchase Pack or the purchase by the Bank
of any Account Receivable.

8.2                                The Supplier agrees to indemnify the Bank on
demand against any loss or expense (including, but not limited to, any loss of
the margin or any other loss or expense sustained or incurred by the Bank in
liquidating or employing deposits acquired or contracted for to effect its
acquisition of an Account Receivable) which the Bank has sustained or incurred
as a consequence of a purchase of an Account Receivable not being made
following the service of a Purchase Pack for any reason whatsoever.

9                                        Termination Events

9.1                                Each of these events or circumstances is a
Termination Event:

(a)                                 Non-payment – the Buyer does
not pay on the due date any amount payable pursuant to the Commercial Contract
at the place and in the currency in which it is expressed to be payable unless:

(i)                                    its failure to pay is caused by
administrative or technical error; and

(ii)                                 payment is made within thirty days of its due
date; or

(iii)                              the Supplier repurchases the relevant Account
Receivable,

(b)                                Other obligations – the Buyer or the Supplier does not comply
with any material provision of the Commercial Contract (other than those
referred to in sub clause (a) (Non-payment)
and such failure (if capable of remedy) is not remedied within thirty days.

(c)                                 Misrepresentation – any representation or statement made or
deemed to be made by the Supplier in this Agreement is or proves to have been
incorrect or misleading in a material respect in the context of this Agreement
when made or deemed to be made.

(d)                                Insolvency

(i)                                    The Supplier or the Buyer is unable or admits
inability to pay its debts as they fall due, suspends making payment on any of
its debts or, by reason of actual or anticipated

 13
 

 

financial difficulties, commences
negotiations with one or more of its creditors with a view to rescheduling any
material amount of its indebtedness.

(ii)                             A moratorium is declared in
respect of any financial indebtedness of the Supplier or the Buyer.

(e)                                 Insolvency proceedings – any corporate action, legal proceedings or
other procedure is taken in relation to:

(i)                                    the suspension of payments, a moratorium of
any indebtedness, winding-up, dissolution, administration, examinership or
reorganisation (by way of voluntary arrangement, scheme of arrangement or
otherwise) of the Supplier or the Buyer;

(ii)                                 a composition, assignment or arrangement with
the creditors as a whole of either the Supplier or the Buyer;

(iii)                              the appointment of a liquidator, receiver,
administrator, administrative receiver, examiner, compulsory manager or other
similar officer in respect of the Supplier or the Buyer or any its assets; or

(iv)                             enforcement of any encumbrance over any of
the Supplier or the Buyer assets, or any analogous procedure or step is taken
in any jurisdiction.

(f)                                   Material Adverse Change – the occurrence of a Material Adverse Change.

(g)           Sanmina-SCI Corporation

Any of the following occur in relation to Sanmina-SCI
Corporation (a company registered in the state of Delaware as company number
2195845) (“Sanmina-SCI Corporation”):

(i)                                    the credit rating of Sanmina-SCI Corporation,
as provided by Standard & Poor’s Rating Services or Moody’s Investor
Services, is downgraded by two or more sub-grades from its credit rating on the
date of Amendment and Restatement Deed; and

(ii)                                 there occurs an event of default (howsoever
described) under any credit facility provided by the Bank or any of the Bank’s
Affiliates to Sanmina-SCI Corporation and/or any of its Affiliates including
(without limitation) the Amended and Restated Credit and Guaranty Agreement
dated as of 16 December 2005 and made among (amongst others) Sanmina-SCI
Corporation, the subsidiaries of Sanmina – SCI Corporation party thereto as
guarantors, the lenders from time to time party thereto, Bank of America N.A.
as administrative agent and Citibank N.A. as collateral agent.

(h)                                 Breach of obligations – the Supplier does not comply with any
provision of this Agreement and such failure, if capable of remedy, is not
remedied within 15 Business Days of the Bank giving notice to the Supplier or
of the Supplier becoming aware of the failure to comply.

9.2                                If a Termination Event occurs and is
continuing unremedied or unwaived for 30 days the Bank may, by notice to the
Supplier, terminate the operation of Clause 2 (The Facility) or suspend the
operation of that clause for such period as the Bank may specify; provided that
for the avoidance of doubt the Bank shall be obliged to acquire all Account
Receivable with a Purchase Date prior to the receipt of such notice by the
Supplier.

 14
 

 

10                                 General

10.1                          Any amounts which but for this Clause 10.1
would fall due for payment by the Bank or the Supplier on a day other than a
Business Day shall be payable on the succeeding Business Day and the Purchase
Price (or as the case may be, the amount payable by the Supplier) shall, where
necessary, be adjusted accordingly.

10.2                          The Supplier agrees and acknowledges that it
has taken independent legal and accounting advice in relation to the accounting
treatment to be applied to the transactions contemplated herein and the
Purchase Pack.  It is agreed that the
Supplier has not relied on any representation of the Bank in this regard.

10.3                          The Bank shall be entitled to rely on any
communication sent by the Supplier irrespective of any error or fraud contained
in the communication or the identity of the individual who sent the
communication, and shall not be liable for any action taken or omitted in
reliance on any notice, direction, consent, certificate, affidavit, statement,
designation or other paper or document reasonably believed by it to be genuine
and to have been duly and properly signed and presented to it by the Supplier.

10.4                          In no event shall the Bank be liable for any
loss of profits, business, data or information or for any incidental, indirect,
special or consequential damages whether arising from negligence, breach of
contract or otherwise, even if informed of the possibility of those losses or
damages.  The Bank shall not be liable
for any losses arising out of or relating to any of its actions or omissions to
act hereunder, except to the extent that any such losses are caused by the Bank’s
wilful misconduct, fraud or gross negligence.

10.5                          This Agreement may be executed in any number
of counterparts (including by facsimile transmission) and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument.

10.6                          The Supplier shall remain liable to perform
all obligations assumed by it under any Commercial Contract and the Bank shall
be under no obligation of any kind whatsoever under such contract or be under
any liability whatsoever in the event of any failure by the Supplier to perform
its obligations under any such contract.

11                                 Termination

11.1                          On the Termination Date the Bank shall have no further obligation to
purchase Account Receivables from the Supplier.

11.2                          Notwithstanding clauses 9.1, 9.2 and 11.1
above, each of the Supplier and the Bank may, by giving not less than 90 days’
prior written notice to the other party, terminate this Agreement; provided
that for the avoidance of doubt, the Bank shall be obliged to acquire all Account
Receivables with a Purchase Date falling prior to the last day
of such 90 day notice period.

12                                 Facility Fee

12.1                          Subject to clause 12.3 below, the Supplier
shall pay to the Bank a facility fee of 25 basis points per annum on the Total
Amount (the Facility
Fee) for the period from and
including the date of the Amendment and Restatement Deed to and including the
Termination Date.

12.2                          The Supplier shall pay the accrued Facility
Fee by the third Business Day of each calendar quarter after receipt of an
invoice from the Bank.

12.3                          The aggregate liability of the Supplier under
this clause 12 and Sanmina-SCI UK Limited (the Alternative Supplier) under
clause 12 of the Alternative Sanmina Agreement to pay the Facility Fee shall
not exceed the total amount of the Facility Fee.  If the Alternative Supplier pays any or all
of Facility Fee under the Alternative Sanmina Agreement, the Facility Fee
payable under this Agreement shall be reduced by the amount so paid by the Alternative
Supplier.

 15
 

 

13                                 Notices

13.1                          All notices, requests and demands given or
made under this Agreement shall be given or made in writing and unless
otherwise stated shall be made by telefax or letter using the address as
specified below or such other address as the party may designate to the other
party:

13.1.1      To the Supplier:

Attention:               Treasury Manager

Address: 7 West Nile Street, Glasgow, G1
2PR

Facsimile:                44 141 245 2882

with a copy to:-                     Sanmina-SCI
Corporation

Attention:                               Corporate
Treasurer

Address:                 2700 North First
Street, San Jose, CA 95134

Facsimile:                                (408)
964 3644

13.1.2       To the Bank

Attention:               Trade Services

Address: 4th Floor. 68 Molesworth Street,
Lewisham, London, SE13 7EU

Facsimile:                0207 500 8063

with a copy to:

Attention:               Trade Finance/Dror
Polak

Address:                                             Citigroup
Centre, Canada Square, Canary Wharf, London E14 5LB.

Facsimile:               44 207 500 2624

13.2                          All notices or other communication shall be
deemed to have been received:

(i)                                    if sent by fax with a confirmed receipt of
transmission from the receiving machine, on the day on which transmitted;

(ii)                                 in the case of a notice given by hand, on the
day of actual delivery;

(iii)                              if sent by post, 5 Business Days after being
deposited in the post with first class prepaid postage,

provided that a notice given in accordance with the above but received
on a day which is not a

 16
 

 

Business Day or after normal business hours in the place of receipt
shall be deemed to have been received on the next Business Day.

14                                 Assignments

The Bank may at any time
assign, transfer or sub participate (including by way of novation) any of its
rights hereunder or under any Purchase Pack to another bank or financial
institution. The Supplier may not assign or otherwise transfer its rights,
benefits or obligations or any of them hereunder.

15                                 Governing Law

15.1                          This Agreement shall be governed by and
construed in accordance with English law.

15.2                          The Supplier irrevocably agrees for the
exclusive benefit of the Bank that the courts of England shall have
jurisdiction to hear and determine any suit, action or proceeding and to settle
any dispute which may arise out of or in connection with this Agreement and for
such purposes irrevocably submits to the jurisdiction of such courts.  The Supplier irrevocably waives any objection
which it may have now or in the future to the courts of England being nominated
for the purpose of this Clause on the ground of venue or otherwise and agrees
not to claim that any such court is not a convenient or appropriate forum.

15.3                          The Supplier hereby authorises Sanmina-SCI UK Limited of 9th Floor, Northwest Wing, Bush
House, Aldwych, London, WC2B 4EZ with registered number 04370464 (or such other
person as it may from time to time substitute by not less than fifteen days
written notice to the Bank) to accept service of all legal process arising out
of or connected herewith or any Purchase Pack and service on such person (or
substitute) shall be deemed to be service on the Supplier. Except upon such
substitution the Supplier shall not revoke any such authority or appointment
and shall at all times maintain an agent for service of process in England and
if any such agent ceases for any reason to be an agent for this purpose, shall
forthwith appoint another agent and advise the Bank accordingly.

As witness the hands of the authorised
signatories of the parties hereto the day and year first above written.

	
  The Supplier

  	
   

  
	
  Executedfor and

  	
  )

  
	
  on behalf of Sanmina-SCI Magyarorszag

  	
  )

  
	
  Elektronikai
  Gyarto Kft

  	
  )

  
	
   

  	
  )

  
	
  by 

  	
  /S/ MONIKA
  BARTHA

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The
  Bank

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executedfor and on behalf of

  	
  )

  
	
  Citibank
  International Plc

  	
  )

  
	
  By /S/ ERIC VAN
  DE PEER

  	
  )

  
				

 

 17
 

 

Schedule 1 – Supplier Pricing
Schedule

Supplier Name: Sanmina-SCI
Magyarorszag Elektronikai Gyarto Kft

Control Number:

(to be completed by the Bank)

A.            Licensing Fees and Charges

Facility Fee is
0.25% per annum.

B.            Fees and Charges in connection with
purchase of Account Receivables

1.             The Bank will
calculate the Initial Discount Charge for each Account Receivable on its
Purchase Date and on each Reconciliation Date it will calculate the Revised
Discount Charge for that Account Receivable in accordance with this Pricing
Schedule.

2.                                      If
on the Reconciliation Date falling immediately after the Maturity Date for an
Account Receivable purchased by the Bank, the Bank calculates that there is a
difference between the Initial Discount Charge and the aggregate Revised
Discount Charge for such Account Receivable, the Bank shall, subject to receipt
of the Reconciliation Report in accordance with paragraph 3 below, debit or
credit the Collection Account with the amount of such difference.

3.                                      The
Supplier shall deliver to the Bank on each Business Day by no later than 1.30pm
a reconciliation report in the form previously agreed with the Bank (the Reconciliation Report).

4.                                    On
each Reconciliation Date, the Bank shall debit the Collection Account with the
amount of any sums which are due to the Bank under the terms of the Agreement
(including this schedule).

Initial Discount Charge for each Account
Receivable means the Payment Amount of such Account Receivable multiplied by
the Initial Discount Rate:

Initial Discount Charge = Payment Amount X Initial
Discount Rate

Where:

Initial Discount Period means the number of
days in the period starting from (and including) the Purchase Date for any
Account Receivable to (but excluding) the Maturity Date of such Account
Receivable.

Initial Discount Rate means:

on the
Purchase Date for each Account Receivable, the rate percent per annum
calculated as follows:

Initial Discount Rate
=(LIBOR + Spread) X (Initial Discount Period / 360)

Each
Initial Discount Rate is identified on the Purchase Date for each respective
Purchase Pack and will apply to any Account Receivable from that respective
Purchase Pack for the period from the Purchase Date until the date on which
such Account Receivable paid by Buyer or repurchased by Supplier.

 18
 

 

LIBOR means :

(a)          the
applicable Screen Rate; or

(b)         (if no
Screen Rate is available) the rate at which the Bank was offering deposits for
the relevant period in an amount comparable to the Account Receivable in the
relevant currency to leading banks in the London interbank market.

Payment Amount in respect of any Account
Receivable means the face amount of such Account Receivable (including VAT) due
from a Buyer on the Maturity Date of such Account Receivable.

Purchase Price means, in respect of any
Account Receivable, the Relevant Percentage of the Payment Amount, less the
Initial Discount Charge applicable to such Account Receivable.

Revised Discount Charge for each Account
Receivable means the Outstanding Account Receivable Amount of such Account
Receivable multiplied by the Revised Discount Rate;

Revised Discount
Charge = Outstanding Account Receivable Amount X Revised Discount Rate

Where:

Outstanding
Account Receivable Amount means in relation to any Account
Receivable, the outstanding amount of such Account Receivable on any
Reconciliation Date.

Revised
Discount Period means the number of days in the period
starting from (and including) the first Reconciliation Date falling after the
Purchase Date for any Account Receivable to (but excluding) the next
Reconciliation Date and each subsequent period which shall commence forthwith
upon the expiry of the previous period and end on (but excluding) the next
Reconciliation Date.

Revised Discount Rate means:

on
each Reconciliation Date falling after the Purchase Date for each Account
Receivable, the rate percent per annum calculated as the sum of LIBOR for the
Revised Discount Period and the Spread, multiplied by the Revised Discount
Period and divided by 360:

Revised Discount Rate
=(LIBOR + Spread) X (Revised Discount Period / 360)

The
Revised Discount Rate is identified on the Reconciliation Date for each Account
Receivable following its Purchase Date and for each Revised Discount Period.

Screen Rate means in relation to LIBOR the
interest rate for Dollar deposits for the relevant period which is displayed on
the screen displays designated “LIBOR01” and “ICAP01” of the Reuters service
(or such other page which may replace them for the purpose of displaying
British Bankers’ Association Interest Settlement Rates for Dollar deposits in
the London interbank market) at or about 11.00am London time on the applicable
day.

Spread is equal to 0.40% per annum.

Transaction Fee of $0 will be charged for
each purchase of Account Receivables offered in a Purchase Package.

 19
 

 

C.            Effective Date:

(1)                                 Effective
Date means the Effective Date under and as defined in the Amendment and
Restatement Deed (the Amended Effective Date).

(2)                                 Subject
to Clause 4.2, the above pricing is valid from the Amended Effective Date until
(and including) the first anniversary of the Amended Effective Date.

 20
 

 

Schedule 2 – Purchase Pack

To:          Citibank International Plc

and

IBM Singapore PTE Ltd
(“Buyer”)

Date:

Dear
Sirs,

1.                                      Sanmina SCI-Magyarorszag Elektronikai Gyarto Kft
(the Supplier) as legal and
beneficial owner, hereby assigns absolutely with full title guarantee to
Citibank International Plc (the Bank)
with effect from **                        (this date must fall at least [·] Business Days after the date of
the Purchase Pack) (the “Purchase
Date”) all its right, title and interest in and to the amounts
payable to the Supplier by IBM Singapore PTE Ltd (the Buyer) in relation to and evidenced by the
Account Receivables listed in the email sent to tradefinance.europe@citigroup.com
from                                              
at                pm
on            and as further
evidenced by the summary of such Account Receivables set out in appendix 1
attached to this Purchase Pack.

2.             Assignment

This Assignment shall
have the effect of assigning to the Bank all of our right, title, benefit and
interest in and to all monies due to us from time to time in relation to each
Account Receivable referred to above including, in each case, all rights to demand,
receive or dispose of any such monies or claims, all rights to sue for or in
relation thereto and all rights of action against any person in connection
therewith or otherwise to enforce the same.

3.             Representations

3.1                                The
Supplier confirms that all representations and warranties set out in the
agreement between the Supplier and the Bank dated **                       as
amended from time to time (the Agreement)
are correct as at the date hereof and as of the Proposed Purchase Date in
respect of each Account Receivable referred to above and the circumstances
existing on the date hereof now and as of the Proposed Purchase Date.

3.2                                The
Supplier hereby represents and warrants that a copy of this Purchase Pack has
been delivered to the Buyer and (a) the Buyer has been notified of the
assignment by the Supplier to the Bank of the Account Receivables referred to
in this Purchase Pack and (b) the Buyer has been instructed to pay all sums
becoming due and payable under or by virtue of each Account Receivable to the
Collection Account held at the Bank.

4.                                      Notice

4.1                                The
Supplier hereby notifies the Buyer of the assignment set out above.  As assignee of each Account Receivable
referred to above, the Bank is therefore entitled to collect or recover for its
own account the sums due by the Buyer in respect of such Account Receivable and
each of the Supplier and the Bank hereby irrevocably instruct the Buyer to pay
all sums becoming due and payable under or by virtue of the above Account
Receivable to account number                              ,
Sort Code                            ,
SWIFT                        
(the Collection Account) held at
Citibank N.A.

6              No Implied Duties

The Bank shall be obliged
to perform such duties and only such duties as are specifically set forth
herein,

 21
 

 

and no implied duties or
responsibilities shall be read or implied into this agreement.  Notwithstanding any other provision elsewhere
contained, the Bank does not assume any obligation or relationship of agency or
trust hereunder for, or with, the Supplier, the Buyer, or any other person.

7                                         Counterparts

This agreement may be
executed in any number of counterparts (including by facsimile transmission)
and all of such counterparts taken together shall be deemed to constitute one
and the same instrument.

8                                        Governing law and jurisdiction

8.1                                This agreement shall be governed by and shall
be construed in accordance with English law.

8.2           The Supplier
irrevocably agrees for the exclusive benefit of the Bank that the courts of
England shall have jurisdiction to hear and determine any suit, action or
proceeding and to settle any dispute which may arise out of or in connection
with this agreement and for such purposes irrevocably submits to the
jurisdiction of such courts.  The
Supplier irrevocably waive any objection which it may have now or in the future
to the courts of England being nominated for the purpose of this Clause on the
ground of venue or otherwise and agrees not to claim that any such court is not
a convenient or appropriate forum.

Dated:

 

Signed
for and on behalf of

Sanmina
SCI-Magyarorszag Elektronikai Gyarto Kft

 22
 

 

APPENDIX
1

Summary
of Account Receivables

 23
 

 

Schedule 3 –  Condition Precedent Documents

(A)          For the Supplier

(a)          a copy of its constitutional documents

(b)         a certificate of an authorised signatory certifying that each copy
document relating to it specified in this Schedule is correct, complete and in
full force and effect as at a date no earlier than the date of this Agreement.

(c)          Certified copies of resolutions of the Supplier’s board of directors
authorising the acceptance and execution of this agreement and each Purchase
Pack and authorising a person or persons to sign this agreement and each
Purchase Pack from time to time.

(B)           Other

(a)          An original first fixed charge over the Collection Account granted by
the Supplier in favour of the Bank.

(b)         An original guaranty granted by Sanmina-SCI Corporation in favour of
the Bank.

(c)          Account opening mandate for the Collection Account.

(d)         Such other documents,
opinions, consents, licences, assurance or evidence as the Bank considers
relevant and may request.

 24Exhibit 10.57.1

LETTER WAIVER

Dated as of August 10, 2006

	
  To the banks and other
  financial institutions 

  or entities (collectively, the “Purchasers”) 

  party to the Purchase Agreement 

  referred to below and to Deutsche Bank AG 

  New York, as administrative agent (the 

  “Administrative Agent”) for the Purchasers

  

 

Ladies and Gentlemen:

We refer to the
Revolving Trade Receivables Purchase Agreement, dated as of September 23, 2005,
among Sanmina-SCI Magyarorszag Elektronikai Gyarto Kft and Sanmina-SCI Systems
de Mexico, S.A. de C.V., as originators, Sanmina-SCI Corporation (“Sanmina-SCI”)
and Sanmina-SCI UK Ltd., as servicers, the Purchasers from time to time party
thereto and the Administrative Agent (the “Purchase Agreement”).
Capitalized terms not otherwise defined in this Letter Waiver have the same
meanings as specified in the Purchase Agreement.

Section 5.1(b) of
the Purchase Agreement requires that the Originators and Servicers deliver to
the Administrative Agent “as soon as available, but in any event not later than
60 days after the end of each of the first three quarterly periods of each
fiscal year of Sanmina-SCI, the unaudited consolidated balance sheet of
Sanmina-SCI as at the end of such quarter and the related unaudited
consolidated statements of income and of cash flows for such quarter and the
portion of the fiscal year through the end of such quarter, setting forth in
comparison form the figures for the previous year, certified by a Responsible
Financial Officer of Sanmina-SCI”.

We believe that we
will be unable to deliver the financial statements for the fiscal quarter ended
July 1, 2006, and the Responsible Financial Officer certification thereof,
within the 60 day period required under Section 5.1(b). Such failure to the
deliver such financial statements, and the Responsible Financial Officer
certification thereof, within the required period will constitute an Incipient
Termination Event under the Purchase Agreement. This Letter Waiver shall
constitute notice of such Incipient Termination Event pursuant to Section
5.6(a) and 6.3(b) of the Purchase Agreement.

Section 7(b) of
the Purchase Agreement provides for a Termination Event under the Purchase
Agreement if, among other things, any Originator or any Servicer shall default
in the observance or performance of any agreement or condition relating to
Indebtedness in the aggregate outstanding principal amount of more than
$45,000,000 or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event shall occur or condition exist, the effect
of which default or other event or condition is to cause, or permit the holder
or beneficiary of such Indebtedness to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or to
become payable. We have been advised that it is a possibility that the trustees
in respect of, or the holders of, the 8.125% Senior

 

Subordinated Notes due
2016 issued by Sanmina-SCI and the 6.75% Senior Subordinated Notes due 2013
issued by Sanmina-SCI (collectively, the “Senior Subordinated Notes”)
and the 3% Convertible Subordinated Notes due 2007 issued by SCI Systems, Inc.
and guaranteed by Sanmina-SCI (the “Convertible Notes”), respectively,
may notify us, in accordance with the respective terms thereof that Sanmina-SCI’s
failure to deliver the financial statements for the fiscal quarter ended July
1, 2006 constitutes a default thereunder and will become an event of default if
not cured or waived within the applicable grace period, at which time they may
declare such Indebtedness due and payable as a consequence of such failure.

We hereby request
that you waive the requirements of Section 5.1(b) and Section 7(e) of the
Purchase Agreement, solely for the period commencing on the date first above
written through October 10, 2006 (the “Waiver Termination Date”), and
solely with respect to the delivery of the financial statements of Sanmina-SCI
for the fiscal quarter of Sanmina-SCI ended July 1, 2006 and the Responsible
Financial Officer certification thereof. On the Waiver Termination Date,
without any further action by the Administrative Agent and the Purchasers, all
of the terms and provisions set forth in the Purchase Agreement with respect to
the Incipient Termination Events thereunder that are waived hereunder and not
cured prior to the Waiver Termination Date shall have the same force and effect
as if this Letter Waiver had not been entered into by the parties hereto, and
the Administrative Agent and the Purchasers shall have all of the rights and
remedies afforded to them under the Purchase Agreement with respect to such
Incipient Termination Events as though no waiver had been granted by them
hereunder.

We further request
that you waive the requirements of (i) Section 4.2(b) with respect to the
representations and warranties contained in Section 3.7 of the Purchase
Agreement through the Waiver Termination Date and solely with respect to any
defaults under Contractual Obligations arising from the failure of Sanmina-SCI
to deliver the financial statements of Sanmina-SCI for the fiscal quarter ended
July 1, 2006 or to file and deliver its Quarterly Report on Form 10-Q for the
fiscal quarter ended July 1, 2006, (ii) Section 4.2(b) with respect to the
representations and warranties contained in Sections 3.1, 3.2, 3.6 and 3.12 of
the Purchase Agreement through the Waiver Termination Date and solely with
respect to the review by Sanmina-SCI of its stock option practices, the inquiry
by the SEC with respect thereto and the results of the foregoing and the
matters referred to in clause (i), and (iii) Section 4.2(c) solely with respect
to the Incipient Termination Events for which waivers are granted under this
Letter Waiver (it being understood that the Originators may qualify any
Purchase Notice with respect to the foregoing clauses (i) through (iii)).

This Letter Waiver
and the waivers requested herein shall become effective as of the date first
above written when, and only when, the Administrative Agent shall have received
counterparts of this Letter Waiver executed by us, the Administrative Agent and
the Required Purchasers. This Letter Waiver is subject to the provisions of
Section 9.1 of the Purchase Agreement.

The Purchase Agreement and
each of the other Transaction Documents, except to the extent of the waiver
specifically provided above, are and shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed. The execution,
delivery and effectiveness of this Letter Waiver shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any
Purchaser or any Agent under any of the

 

Transaction Documents,
nor constitute a waiver of any provision of any of the Transaction Documents.

If you agree to
the terms and provisions of this Letter Waiver, please evidence such agreement
by executing and returning four counterparts of this Letter Waiver to Kathleen
D. Rothman at Wilson Sonsini Goodrich & Rosati, P.C., 650 Page Mill Road,
Palo Alto, CA 94304, Facsimile: (650) 493-6811, Telephone (650) 320-4629 by no
later than 5:00 P.M. (New York City time) on August 10, 2006.

This Letter Waiver
may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Letter Waiver by telecopier shall be effective as delivery of a manually
executed counterpart of this Letter Waiver.

This Letter Waiver
shall be governed by, and construed in accordance with, the laws of the State
of New York.

[BALANCE OF THIS
PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

 

 

 

	
  

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  SANMINA-SCI MAGYARORSZAG
ELEKTRONIKAI GYARTO KFT

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  
	
   

  	
  SANMINA-SCI
  SYSTEMS DE MEXICO, S.A. DE

  C.V

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Title: Chairman/Director

  
	
   

  	
   

  
	
   

  	
  SANMINA-SCI CORPORATION

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Walter Boileau

  	
   

  
	
   

  	
   

  	
  Title: VP and
  Treasurer

  
	
   

  	
   

  
	
   

  	
  SANMINA-SCI UK
  LTD.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed as of the date firstabove
  written:

  	
   

  
	
   

  	
   

  
	
  Deutsche Bank AG
  New York,

  	
   

  
	
  as Administrative Agent and as Purchaser

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Vice
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Vice
  President

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