Document:

cosm_ex102.htm

EXHIBIT 10.2
  
 GUARANTY AGREEMENT
  
 This Guaranty Agreement (as amended, amended and restated, supplemented or otherwise modified, renewed or replaced from time to time, this “Guaranty Agreement”), dated as of April 1, 2019, by and between Grigorios Siokas, with a principal residence at __________________________________, (“Guarantor”) and ___________________________ (“Lender”). All capitalized terms used herein and not otherwise defined shall have the meaning set forth in that certain Senior Promissory Note, dated as of the date hereof (the “Note”), by and between the Lender and Cosmos Holdings, Inc. (the “Debtor”).
  
 RECITALS
  
 WHEREAS, pursuant to that certain Note, the Lender has agreed to lend the Debtor $250,000; 
  
 WHEREAS, the Guarantor has agreed to personally guaranty repayment of the Note as security for the obligations of the Debtor under the Note; 
  
 WHEREAS, Guarantor will benefit, directly or indirectly, from repayment of the Note contemplated by the Note; and
  
 WHEREAS, it is a condition to the effectiveness of the Note that this Guaranty Agreement be executed and delivered by the parties hereto. 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor hereby agrees for the benefit of Lender as follows:
  
 1. GUARANTY.
  
 1.1 Guaranty.
  
 (a) Guarantor unconditionally and irrevocably guarantees to Lender repayment of the Note.
  
 (a) Guarantor, to the extent permitted by applicable law, waives presentation to, demand for payment from and protest to, as the case may be, Debtor or any other guarantor of any of the Guaranteed Obligations, and also waives notice of protest for nonpayment, notice of acceleration and notice of intent to accelerate. The obligations of Guarantor hereunder shall not be affected by: (i) the failure of Lender to assert any claim or demand or to exercise or enforce any right or remedy against Debtor under the provisions of the Note or otherwise; (ii) any extension or renewal of any provision hereof or thereof; or (iii) any rescission, waiver, compromise, acceleration, amendment or modification of any of the terms or provisions of the Note. 
  
 (c) Guarantor further agrees that this Guaranty Agreement constitutes a guaranty of performance and of payment when due (beyond applicable notice and cure periods) and not just of collection, and waives, to the fullest extent permitted by applicable law, any right to require that any resort be had by Lender to any security held for payment of the Guaranteed Obligations or to any balance of any deposit, account or credit on the books of Lender in favor of Debtor.
  
 (d) Guarantor acknowledges and agrees that Guarantor expects to derive benefit, directly and indirectly, from the successful operations of Debtor and any financial accommodations arising from the Note. 
  
  	 
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 1.2 Limitation on Guaranteed Amount.
  
 (a) Notwithstanding any other provision of this Guaranty Agreement, the amount guaranteed by Guarantor hereunder shall be limited to the extent, if any, required so that its obligations under this Guaranty Agreement shall not be rendered voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or to being set aside or annulled under any applicable state law or foreign statute relating to fraud on creditors or under common law. In determining the limitations, if any, on the amount of Guarantor’s obligations hereunder pursuant to the preceding sentence, any rights of subrogation or contribution which Guarantor may have under this Guaranty Agreement or applicable statute shall be taken into account.
  
 (b) Without limiting the provisions of Section 1.2(a) above, and notwithstanding any other provision of this Guaranty Agreement, the continuing liability of the Guarantor under this Guaranty Agreement shall be limited to the Shortfall Shares.
  
 2. REPRESENTATIONS AND WARRANTIES; COVENANTS.
  
 2.1 Guarantor makes the following representations and warranties, all of which shall survive the execution and delivery of this Guaranty Agreement:
  
 (i) the execution, delivery and performance of this Guaranty Agreement (a) will not violate any provision of applicable law, any order of any court or other agency of the United States or any state thereof, applicable to Guarantor or any of his properties or assets; (b) does not require the consent or approval of any Person or entity, including but not limited to any governmental authority, or any filing or registration of any kind; and (c) is the legal, valid and binding obligation of Guarantor enforceable against Guarantor in accordance with its terms, except to the extent that enforcement may be limited by applicable bankruptcy, insolvency and other similar laws affecting creditors’ rights generally, and general principles of equity; and
  
 (ii) the execution, delivery and performance of this Guaranty Agreement will not result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any properties or assets of Guarantor other than pursuant to this Guaranty Agreement or the Note.
  
  	 
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 3. MISCELLANEOUS
  
 3.1 Notices. All communications and notices hereunder shall be in writing and given to the addresses first set forth above in the Preamble.
  
 3.2 Binding Effect; Several Agreement; Assignments. Whenever in this Guaranty Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements by or on behalf of Guarantor that are contained in this Guaranty Agreement shall bind and inure to the benefit of each party hereto and their respective successors and assigns. This Guaranty Agreement shall become effective as to Guarantor when a counterpart hereof executed on behalf of Guarantor shall have been delivered to Lender, and a counterpart shall have been executed on behalf of Lender, and thereafter shall be binding upon Guarantor and Lender and their respective successors and assigns, and shall inure to the benefit of Guarantor, Lender, and their respective successors and assigns, except that Guarantor shall not have the right to assign its rights or obligations hereunder or an interest herein (and any such attempted assignment shall be void). 
  
 3.3 Governing Law. This Guaranty shall be governed by and be construed and enforced in accordance with the substantive law of the State of Nevada, without regard to the choice of law provisions thereof. Each party hereto irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the state courts sitting in the City and State of New York, Borough of Manhattan and federal court of the United States Southern District Court of New York for any action, dispute, suit or proceeding arising out of or relating to this Guaranty. The choice of forum set forth in this Section 3.3 will not be deemed to preclude the enforcement of any judgment obtained in such forum or the taking of any action under this Agreement to enforce same in any other jurisdiction. In the event of any action or suit as to any matters of dispute between the parties, service of any process may be made upon the other party in the same manner as the giving of notices under Section 4.1 of this Agreement.
  
 3.4 No Waiver, etc. Neither a failure nor a delay on the part of Lender in exercising any right, power or privilege under this Guaranty Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege. The rights, remedies and benefits of Lender expressly specified herein are cumulative and not exclusive of any other rights, remedies or benefits which Lender may have under this Guaranty Agreement, at law, in equity, by statute, or otherwise.
  
 3.5 Modification, etc. No modification, amend­ment or waiver of any provision of this Guaranty Agreement, nor the consent to any departure by Guarantor therefrom, shall in any event be effective unless the same shall be in writing and signed by Lender, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on Guarantor in any case shall entitle Guarantor to any other or further notice or demand in the same, similar or other circumstances.
  
 3.6 Severability. If any one or more of the provisions contained in this Guaranty Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall in no way be affected or impaired thereby.
  
 3.7 Headings. Section headings used herein are for convenience of reference only and are not to affect the construction of, or be taken into consideration in interpreting, this Guaranty Agreement.
  
  	 
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 3.8 Counterparts. This Guaranty Agreement may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract, and shall become effective as provided in Section 3.2. Delivery of an executed signature page to this Guaranty Agreement by facsimile or other electronic transmission shall be as effective as delivery of a manually executed counterpart to this Guaranty Agreement.
  
 3.9 Waiver of Jury Trial. EACH OF THE PARTIES HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN RESOLVING ANY CLAIM OR COUNTERCLAIM RELATING TO OR ARISING OUT OF THIS GUARANTY AGREEMENT OR THE SUBJECT MATTER HEREOF.
  
 3.10 Right of Setoff. If an Event of Default under the Note shall have occurred and be continuing beyond applicable notice and cure periods, Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by Lender to or for the credit or the account of Guarantor against any or all of the obligations of Guarantor now or hereafter existing under this Guaranty Agreement and any other Note held by Lender, irrespective of whether or not Lender shall have made any demand under this Guaranty Agreement or the Note and although such obligations may be unmatured. The rights of Lender under this Section 3.10 are in addition to the other rights and remedies (including other rights of setoff) which Lender may have. Lender agrees to promptly notify Guarantor after any such setoff and application made by Lender; provided that the failure to give such notice shall not affect the validity of such setoff and application.
  
  
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 IN WITNESS WHEREOF, Guarantor and Lender have executed this Guaranty Agreement as of the date first written above.
  
  	 	GUARANTOR:	
	 	 	 	  
	 
		By:		
	  
		 Name:  
	 Grigorios Siokas
	 
	 	 	 Address: 
	  
	 
	  
	  
	   
	   
	  

	 	  	    	    
	 
	  
	    
	    
	    
	  

	  
	 LENDER:
	  

	  
	   
	   
	   
	  

	  
	 By: 
	  
	  

	  
	  
	 Name: 
	  
	  

	  
	   
	   
	   
	  

  
  	 -5-Exhibit 10.1

 

 

FIRST AMENDMENT TO

AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY
AGREEMENT

 

This First Amendment to Amended and Restated
Revolving Credit and Security Agreement (the “Amendment”) is made
as of this 29th day of March, 2019 by and among SMTC Corporation, a Delaware corporation
(“SMTC”), SMTC Manufacturing Corporation of California, a California
corporation (“SMTC California”), SMTC Mex Holdings, Inc., a Delaware
corporation (“SMTC Mex”), HTM Holdings, Inc., a Delaware corporation
(“HTM”), MC TEST SERVICE, INC., a Florida corporation (“MC Test”), MC ASSEMBLY INTERNATIONAL LLC, a Delaware
limited liability company (“MC Assembly International”), MC ASSEMBLY LLC, a Delaware limited liability company (“MC
Assembly” and together with SMTC, SMTC California, SMTC Mex, HTM, MC Test, and MC Assembly International, and each other
Person joined hereto as a borrower from time to time, each a “Borrower” and collectively the “Borrowers”),
the financial institutions which are now or which hereafter become a party to the Credit Agreement (each a “Lender”
and collectively, the “Lenders”) and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as agent for
the Lenders (in such capacity, the “Agent”).

 

BACKGROUND

 

A.               
On November 8, 2018, Borrowers, Lenders and Agent entered into, inter alia, a certain Amended and Restated Revolving
Credit and Security Agreement (as same has been or may be amended, modified, supplemented, renewed, extended, replaced or substituted
from time to time, the “Credit Agreement”) to reflect certain financing arrangements between the parties thereto.

 

B.                
The Borrowers have requested, and the Agent and the Lenders have agreed, subject to the terms and conditions of this Amendment,
to modify certain definitions, terms and provisions of the Credit Agreement.

 

NOW,
THEREFORE, with the foregoing background hereinafter deemed incorporated by reference herein
and made part hereof, the parties hereto, intending to be legally bound, promise and agree as follows:

 

1.                 
Definitions.

 

(a)              
Interpretation. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the
Credit Agreement. In the case of a direct conflict between the provisions of the Credit Agreement and the provisions of this Amendment,
the provisions of this Amendment shall govern and control.

 

     

     

    

 

2.                 
Amendment. Section 6.5(c) of the Credit Agreement is hereby amended by deleting such Section in its entirety and
replacing it with the following:

 

(a)              
Senior Leverage Ratio. Cause to be maintained a Senior Leverage Ratio of not greater than the ratio set forth below
as of the end of each fiscal quarter set forth below during the term of this Agreement, in each case, on a trailing twelve month
basis:

 

	Fiscal Quarter End	Senior Leverage Ratio
	December 31, 2018   	4.00x
	March 31, 2019	3.75x
	June 30, 2019   	3.25x
	September 30, 2019	2.90x
	December 31, 2019   	2.55x
	March 31, 2020	2.40x
	June 30, 2020   	2.40x
	September 30, 2020	2.20x
	December 31, 2020  	2.00x
	March 31, 2021	1.90x
	June 30, 2021   	1.90x
	September 30, 2021	1.75x
	December 31, 2021   	1.75x
	March 31, 2022	1.75x
	June 30, 2022   	1.75x
	September 30, 2022	1.50x
	December 31, 2022   	1.50x
	March 31, 2023	1.50x
	June 30, 2023   	1.50x
	September 30, 2023	1.50x
	December 31, 2023 	1.50x

 

3.                 
Representations and Warranties. Each Borrower hereby:

 

(a)            
reaffirms all representations and warranties made to Agent and Lenders under the Credit Agreement and all of the Other Documents
and confirms that all are true and correct in all respects as of the date hereof as if made on and as of the date hereof, except
for representations and warranties which related exclusively to an earlier date, which shall be true and correct in all respects
as of such earlier date;

 

(b)           
reaffirms all of the covenants contained in the Credit Agreement, covenants to abide thereby until all Advances, Obligations
and other liabilities of Borrowers to Agent and Lenders under the Credit Agreement of whatever nature and whenever incurred, are
satisfied and/or released by Agent and Lenders;

 

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(c)            
represents and warrants that no Default or Event of Default has occurred and is continuing under the Credit Agreement or
any of the Other Documents;

 

(d)           
represents and warrants that it has the authority and legal right to execute, deliver and carry out the terms of this Amendment,
that such actions were duly authorized by all necessary corporate action and that the officers executing this Amendment and the
Equipment Note (defined below) on its behalf were similarly authorized and empowered, and that this Amendment does not contravene
any provisions of its articles of incorporation, bylaws or other formation documents, or of any contract or agreement to which
it is a party or by which any of its properties are bound; and

 

(e)            
represents and warrants that this Amendment and all assignments, instruments, documents, and agreements executed and delivered
in connection herewith are valid, binding and enforceable in accordance with their respective terms except as such enforceability
may be limited by equitable principles or any applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’
rights generally.

 

4.                 
Conditions Precedent/Effectiveness Conditions. This Amendment shall be effective upon:

 

(a)            
execution and delivery of this Amendment by all parties hereto;

 

(b)           
receipt by Agent of an executed copy of the Amendment No. 1 and Waiver to Financing Agreement, in form and substance reasonably
satisfactory to Agent;

 

(c)            
on the date of this Amendment and after giving effect hereto, no Default or Event of Default shall exist or shall have occurred
and be continuing.

 

5.                 
Further Assurances. Borrowers hereby agree to take all such actions and to execute and/or deliver to Agent and Lenders
all such documents, assignments, financing statements and other documents, as Agent and Lenders may reasonably require from time
to time, to effectuate and implement the purposes of this Amendment.

 

6.                 
Waivers. Pursuant to the request of the Loan Parties and in reliance upon the representations and warranties of the
Loan Parties described herein, the Agent and the Lenders hereby waive all Defaults and Events of Default identified on Schedule
I hereto (the "Specified Events of Default").

 

7.                 
Payment of Expenses. Borrowers shall pay or reimburse Agent and Lenders for their reasonable attorneys’ fees
and expenses in connection with the preparation, negotiation and execution of this Amendment and the documents provided for herein
or related hereto.

 

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8.                 
Reaffirmation of Credit Agreement. Except as modified by the terms hereof, all of the terms and conditions of the
Credit Agreement, as amended, and all of the Other Documents are hereby reaffirmed and shall continue in full force and effect
as therein written.

 

9.                 
Acknowledgment of Guarantors. By execution of this Amendment, each Guarantor hereby covenants and agrees that each
of its respective Amended and Restated Guaranty and Suretyship Agreements, dated November 8, 2018, shall remain in full force and
effect and shall continue to cover the existing and future Obligations of Borrowers to Agent and Lenders.

 

10.             
Miscellaneous.

 

(a)            
Third Party Rights. No rights are intended to be created hereunder for the benefit of any third party donee, creditor,
or incidental beneficiary.

 

(b)           
Headings. The headings of any paragraph of this Amendment are for convenience only and shall not be used to interpret
any provision hereof.

 

(c)            
Modifications. No modification hereof or any agreement referred to herein shall be binding or enforceable unless
in writing and signed on behalf of the party against whom enforcement is sought.

 

(d)           
Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New
York applied to contracts to be performed wholly within the State of New York.

 

(e)            
Counterparts. This Amendment may be executed in any number of counterparts and by facsimile or electronic transmission,
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. Any signature to this Amendment delivered by a party by facsimile or other electronic means of transmission shall be
deemed to be an original signature hereto.

 

[Remainder of Page Intentionally Left Blank]

 

 

 

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IN WITNESS WHEREOF, the parties have caused
this Amendment to be executed and delivered by their duly authorized officers as of the date first above written.

 

	LOAN PARTIES:	SMTC CORPORATION
	 	By:	/s/ Steve Waszak	 
	 	Name:	Steve Waszak	 
	 	Title	Chief Financial Officer	 

 

	 	SMTC MANUFACTURING CORPORATION OF CALIFORNIA
	 	By:	/s/ Steve Waszak	 
	 	Name:	Steve Waszak	 
	 	Title	Chief Financial Officer	 

 

	 	SMTC MEX HOLDINGS INC.
	 	By:	/s/ Steve Waszak	 
	 	Name:	Steve Waszak	 
	 	Title	Chief Financial Officer	 

 

	 	HTM HOLDINGS, INC.
	 	By:	/s/ Steve Waszak	 
	 	Name:	Steve Waszak	 
	 	Title	Chief Financial Officer	 

 

	 	MC TEST SERVICE, INC.
	 	By:	/s/ Steve Waszak	 
	 	Name:	Steve Waszak	 
	 	Title	Chief Financial Officer	 

 

	 	MC ASSEMBLY INTERNATIONAL LLC
	 	By:	/s/ Steve Waszak	 
	 	Name:	Steve Waszak	 
	 	Title	Chief Financial Officer	 

 

	 	MC ASSEMBLY LLC
	 	By:	/s/ Steve Waszak	 
	 	Name:	Steve Waszak	 
	 	Title	Chief Financial Officer	 

 

 

 

    [SIGNATURE PAGE TO FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]
 
S-1

     

    

 

	AGENT AND LENDERS:	PNC BANK, NATIONAL ASSOCIATION,
	 	By:	/s/ Jason T. Sylvester	 
	 	Name:	Jason T. Sylvester	 
	 	Title	Vice President	 
	 	 	 	 
	 	 	Revolving Commitment Amount: $45,000,000
	 	 	Revolving Commitment Percentage: 100%
	 	 	 	 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO FIRST AMENDMENT
TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

 

S-2

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