Document:

ex_154842.htm

Exhibit 10.2

 

EXECUTION VERSION

 

 

AMENDMENT NO. 3

TO FINANCING AGREEMENT

 

This AMENDMENT NO. 3 TO FINANCING AGREEMENT, dated as of August 8, 2019 (this "Third Amendment"), amends that certain Financing Agreement, dated as of November 8, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the "Financing Agreement"), by and among SMTC CORPORATION, a Delaware corporation, each Person that is a party thereto as a borrower from time to time (collectively, the "Borrowers"), each other Loan Party that is a party thereto from time to time, each financial institution that is a party thereto from time to time (collectively, the "Lenders"), TCW ASSET MANAGEMENT COMPANY LLC, as administrative agent for the Lenders (in such capacity, the "Administrative Agent"), and TCW ASSET MANAGEMENT COMPANY LLC, as collateral agent for the Lenders (in such capacity, the "Collateral Agent").

 

WHEREAS, the Loan Parties have requested that the Agents and the Lenders amend certain terms and conditions of the Financing Agreement; and

 

WHEREAS, the Agents and the Lenders are willing to amend such terms and conditions of the Financing Agreement on the terms and conditions set forth herein.

 

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.      Definitions. All terms used herein that are defined in the Financing Agreement and not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement, as amended by this Third Amendment.

 

2.      Amendments.

 

(a)      Section 1.01 of the Financing Agreement is hereby amended by deleting the definition of "Senior Leverage Ratio" in its entirety.

 

(b)      Section 1.01 of the Financing Agreement is hereby amended by deleting the definition of "Applicable Margin" in its entirety and substituting the following therefor:

 

""Applicable Margin" means, as of any date of determination, with respect to the interest rate of the

 

(I)     Term Loan A (or any portion thereof):

 

(a)     From the Third Amendment Effective Date until delivery of the financial statements for the Fiscal Quarter ending June 30, 2020, pursuant to Section 7.01(a)(ii) together with the related Compliance Certificate required under Section 7.01(a)(iv) (the "Initial Applicable Margin Period"), the relevant Applicable Margin shall be set at Level I in the table below.

 

 

 

 

(b)     After the Initial Applicable Margin Period, the relevant Applicable Margin shall be set at the respective level indicated below based upon the Total Leverage Ratio set forth opposite thereto, which ratio shall be calculated as of the end of the most recent Fiscal Quarter of the Parent and its Subsidiaries for which quarterly financial statements and a Compliance Certificate are received by the Agents and the Lenders in accordance with Section 7.01(a)(ii) and Section 7.01(a)(iv):

 

	
			Level

				
			Total Leverage Ratio

				
			Reference Rate Loans

				
			LIBOR Rate Loans

			
	
			I

				
			Greater than or equal to 3.00 to 1:00

				
			6.75%

				
			8.75%

			
	
			II

				
			Less than 3.00 to 1:00 and equal to or greater than 2.50 to 1:00

				
			6.25%

				
			8.25%

			
	
			III

				
			Less than 2.50 to 1:00 and equal to or greater than 2.00 to 1:00

				
			5.75%

				
			7.75%

			
	
			IV

				
			Less than 2.00 to 1:00

				
			5.25%

				
			7.25%

			

 

(c)     Subject to clause (d) below, the adjustment of the Applicable Margin (if any) will occur 2 Business Days after the date on which quarterly financial statements and a Compliance Certificate are required to be delivered in accordance with Section 7.01(a)(ii) and Section 7.01(a)(iv).

 

(d)     Notwithstanding the foregoing:

 

(i)     the Applicable Margin shall be set at Level I in the table above (x) upon the occurrence and during the continuation of a Default or Event of Default, or (y) if, for any period, the Administrative Agent does not receive the financial statements and certificates described in clause (c) above, for the period commencing on the date such financial statements and certificate were required to be delivered through the date on which such financial statements and certificate are actually received by the Administrative Agent and the Lenders; and

 

(ii)     in the event that any financial statement or certificate described in clause (c) above is inaccurate (regardless of whether this Agreement or any Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any fiscal period, then the Applicable Margin for such fiscal period shall be adjusted retroactively (to the effective date of the determination of the Applicable Margin that was based upon the delivery of such inaccurate financial statement or certificate) to reflect the correct Applicable Margin, and the Borrowers shall promptly make payments to the Agents and the Lenders to reflect such adjustment; and

 

(II)     Term Loan B (or any portion thereof):

 

(a) in the case of any Reference Rate Loan, 8.50% per annum; provided that (i) such rate in respect of the Term Loan B shall increase to 10.50% per annum on the first anniversary of the Effective Date in the event that the Term Loan B is not paid in full on or prior to the first anniversary of the Effective Date and (ii) such rate in respect of the Term Loan B shall increase to 12.50% per annum on the second anniversary of the Effective Date in the event that the Term Loan B is not paid in full on or prior to the second anniversary of the Effective Date (and the Lenders have not elected to increase the number of warrant shares issuable under the Warrants pursuant to the terms thereof); and

 

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(b) in the case of any LIBOR Rate Loan, 10.50% per annum; provided that (i) such rate in respect of the Term Loan B shall increase to 12.50% per annum on the first anniversary of the Effective Date in the event that the Term Loan B is not paid in full on or prior to the first anniversary of the Effective Date and (ii) such rate in respect of the Term Loan B shall increase to 14.50% per annum on the second anniversary of the Effective Date in the event that the Term Loan B is not paid in full on or prior to the second anniversary of the Effective Date (and the Lenders have not elected to increase the number of warrant shares issuable under the Warrants pursuant to the terms thereof)."

 

(c)      Section 1.01 of the Financing Agreement is hereby amended by deleting the definition of "Applicable Premium" in its entirety and substituting the following therefor:

 

""Applicable Premium" means

 

(a)     as of the date of the occurrence of an Applicable Premium Trigger Event specified in clause (b), (c) or (d) of the definition thereof:

 

(i)(A)     with respect to the Term Loan A, during the period from and after the Third Amendment Effective Date up to and including the date that is the first anniversary of the Third Amendment Effective Date (the "First Post-Amendment Period"), an amount equal to 3.00% times the aggregate amount of all Term Loan A Obligations (other than the Applicable Premium) outstanding on the date of such Applicable Premium Trigger Event and (B) with respect to the Term Loan B, during the period from and after the Effective Date up to and including the date that is the first anniversary of the Effective Date (the "First Period"), 1.00% times the aggregate amount of all Term Loan B Obligations (other than the Applicable Premium) outstanding on the date of such Applicable Premium Trigger Event;

 

(ii)(A)     with respect to the Term Loan A, during the period after the First Post-Amendment Period up to and including the date that is the second anniversary of the Third Amendment Effective Date (the "Second Post-Amendment Period"), an amount equal to 2.00% times the aggregate amount of all Term Loan A Obligations (other than the Applicable Premium) outstanding on the date of such Applicable Premium Trigger Event and (B) with respect to the Term Loan B, during the period after the First Period up to and including the date that is the second anniversary of the Effective Date (the "Second Period"), 2.00% times the aggregate amount of all Term Loan B Obligations (other than the Applicable Premium) outstanding on the date of such Applicable Premium Trigger Event;

 

(iii)(A)     with respect to the Term Loan A, during the period after the Second Post-Amendment Period up to and including the date that is the third anniversary of the Third Amendment Effective Date (the "Third Post-Amendment Period"), an amount equal to 1.00% times the aggregate amount of all Term Loan A Obligations (other than the Applicable Premium) outstanding on the date of such Applicable Premium Trigger Event and (B) with respect to the Term Loan B, during the period after the Second Period up to and including the date that is the third anniversary of the Effective Date (the "Third Period"), 3.00% times the aggregate amount of all Term Loan B Obligations (other than the Applicable Premium) outstanding on the date of such Applicable Premium Trigger Event;

 

- 3 -

 

 

(iv)     during the period after the Third Period up to and including the date that is the fourth anniversary of the Effective Date (the "Fourth Period"), with respect to the Term Loan B only, an amount equal to 4.00% times the aggregate amount of all Term Loan B Obligations (other than the Applicable Premium) outstanding on the date of such Applicable Premium Trigger Event; and

 

(v)     during the period after the Fourth Period (the "Fifth Period"), with respect to the Term Loan B only, an amount equal to 5.00% times the aggregate amount of all Term Loan B Obligations (other than the Applicable Premium) outstanding on the date of such Applicable Premium Trigger Event; and

 

(b)     as of the date of the occurrence of an Applicable Premium Trigger Event specified in clause (a) of the definition thereof:

 

(i)(A)      with respect to the Term Loan A, during the First Post-Amendment Period, an amount equal to 3.00% times the amount of the Term Loan A Obligations (other than the Applicable Premium) being paid on such date, and (B) with respect to the Term Loan B, during the First Period, an amount equal to 1.00% times the amount of the Term Loan B Obligations (other than the Applicable Premium) being paid on such date;

 

(ii)(A)     with respect to the Term Loan A, during the Second Post-Amendment Period, an amount equal to 2.00% times the amount of the Term Loan A Obligations (other than the Applicable Premium) being paid on such date, and (B) with respect to the Term Loan B, during the Second Period, an amount equal to 2.00% times the amount of the Term Loan B Obligations (other than the Applicable Premium) being paid on such date;

 

(iii)(A)     with respect to the Term Loan A, during the Third Post-Amendment Period, an amount equal to 1.00% times the amount of the Term Loan A Obligations (other than the Applicable Premium) being paid on such date, and (B) with respect to the Term Loan B, during the Third Period, an amount equal to 3.00% times the amount of the Term Loan B Obligations (other than the Applicable Premium) being paid on such date;

 

(iv)     during the Fourth Period, with respect to the Term Loan B only, an amount equal to 4.00% times the amount of the Term Loan B Obligations (other than the Applicable Premium) being paid on such date; and

 

(v)     during the Fifth Period, with respect to the Term Loan B only, an amount equal to 5.00% times the amount of the Term Loan B Obligations (other than the Applicable Premium) being paid on such date."

 

(d)      Section 1.01 of the Financing Agreement is hereby amended by deleting the reference to "$2,000,000" in clause (b)(vii) of the definition of "Consolidated EBITDA" and substituting "$3,000,000" therefor.

 

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(e)      Section 1.01 of the Financing Agreement is hereby amended by adding the following to the definition of "Total Leverage Ratio":

 

"For all purposes of calculating the Total Leverage Ratio hereunder, the amount of Revolving Loan Obligations outstanding as of the end of any period shall be deemed to be an amount equal to the result of (i) the sum of the aggregate amount of Revolving Loan Obligations outstanding at the end of each Business Day during the most recently ended fiscal month of such period divided by (ii) the number of Business Days in such fiscal month."

 

(f)      Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions in alphabetical order:

 

""Third Amendment" means that certain Amendment No. 3 to Financing Agreement, dated as of August 8, 2019, by and among the Parent, the other Loan Parties party thereto, the Lenders party thereto and the Agents."

 

""Third Amendment Effective Date" has the meaning specified therefor in the Third Amendment."

 

""Third Amendment Fee" has the meaning specified therefor in Section 2.06(h)."

 

(g)      Section 2.06 of the Financing Agreement is hereby amended by adding the following clause (h) at the end thereof:

 

"(h)     Third Amendment Fee. On or prior to the Third Amendment Effective Date, the Borrowers shall pay to the Administrative Agent for the account of the Lenders, in accordance with their Pro Rata Shares, a nonrefundable amendment fee (the "Third Amendment Fee") equal to $125,000."

 

(h)      Section 7.03 of the Financing Agreement is hereby deleted in its entirety and the following substituted therefor:

 

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"Section 7.03     Financial Covenants. So long as any principal of or interest on any Loan or any other Obligation (whether or not due) shall remain unpaid (other than Contingent Indemnity Obligations) or any Lender shall have any Commitment hereunder, each Loan Party shall not, unless the Required Lenders shall otherwise consent in writing:

 

(a)     Total Leverage Ratio. Permit the Total Leverage Ratio of the Parent and its Subsidiaries as of the last day of any period of 4 consecutive Fiscal Quarters of the Parent and its Subsidiaries for which the last Fiscal Quarter ends on a date set forth below to be greater than the ratio set forth opposite such date:

 

	 	
			Fiscal Quarter End

				
			Total Leverage Ratio

				 
	 	
			September 30, 2019

				
			3.95:1.00

				 
	 	
			December 31, 2019

				
			3.85:1.00

				 
	 	
			March 31, 2020

				
			3.70:1.00

				 
	 	
			June 30, 2020

				
			3.65:1.00

				 
	 	
			September 30, 2020

				
			3.55:1.00

				 
	 	
			December 31, 2020

				
			3.45:1.00

				 
	 	
			March 31, 2021

				
			3.35:1.00

				 
	 	
			June 30, 2021

				
			3.20:1.00

				 
	 	
			September 30, 2021

				
			3.10:1.00

				 
	 	
			December 31, 2021

				
			3.00:1.00

				 
	 	
			March 31, 2022

				
			2.85:1.00

				 
	 	
			June 30, 2022

				
			2.75:1.00

				 
	 	
			September 30, 2022

				
			2.50:1.00

				 
	 	
			December 31, 2022

				
			2.50:1.00

				 
	 	
			March 31, 2023

				
			2.35:1.00

				 
	 	
			June 30, 2023

				
			2.35:1.00

				 
	 	
			September 30, 2023

				
			2.25:1.00

				 
	 	
			December 31, 2023

				
			2.25:1.00

				 

 

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(b)     Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage Ratio of the Parent and its Subsidiaries as of the last day of any period of 4 consecutive Fiscal Quarters of the Parent and its Subsidiaries for which the last Fiscal Quarter ends on a date set forth below to be less than the ratio set forth opposite such date:

 

	 	
			Fiscal Quarter End

				
			Fixed Charge Coverage Ratio

				 
	 	
			September 30, 2019

				
			1.35:1.00

				 
	 	
			December 31, 2019

				
			1.35:1.00

				 
	 	
			March 31, 2020

				
			1.50:1.00

				 
	 	
			June 30, 2020

				
			1.50:1.00

				 
	 	
			September 30, 2020

				
			1.50:1.00

				 
	 	
			December 31, 2020

				
			1.50:1.00

				 
	 	
			March 31, 2021

				
			1.75:1.00

				 
	 	
			June 30, 2021

				
			1.75:1.00

				 
	 	
			September 30, 2021

				
			1.75:1.00

				 
	 	
			December 31, 2021

				
			1.75:1.00

				 
	 	
			March 31, 2022

				
			2.00:1.00

				 
	 	
			June 30, 2022

				
			2.00:1.00

				 
	 	
			September 30, 2022

				
			2.00:1.00

				 
	 	
			December 31, 2022

				
			2.00:1.00

				 
	 	
			March 31, 2023

				
			2.00:1.00

				 
	 	
			June 30, 2023

				
			2.00:1.00

				 
	 	
			September 30, 2023

				
			2.00:1.00

				 
	 	
			December 31, 2023

				
			2.00:1.00"

				 

 

 

3.      Representations and Warranties. Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows:

 

(a)      Representations and Warranties; Event of Default. The representations and warranties herein, in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered to any Secured Party pursuant hereto or thereto on or prior to the Third Amendment Effective Date (as defined below) are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the Third Amendment Date as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of such earlier date). No Default or Event of Default has occurred and is continuing on the Third Amendment Effective Date or would result from this Third Amendment or the transactions contemplated hereby, the Financing Agreement or the other Loan Documents becoming effective in accordance with its or their respective terms.

 

(b)      Organization, Good Standing, Etc. Each Loan Party (i) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state or jurisdiction of its organization, (ii) has all requisite power and authority to conduct its business as now conducted and as presently contemplated and, in the case of the Borrowers, to make the borrowings contemplated by the Financing Agreement, and to execute and deliver this Third Amendment and each other Loan Document to which it is a party, and to consummate the transactions contemplated thereby, and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except (solely for the purposes of this subclause (iii)) where the failure to be so qualified and in good standing could not reasonably be expected to have a Material Adverse Effect.

 

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(c)      Authorization, Etc. The execution, delivery and performance by each Loan Party of this Third Amendment and each other Loan Document to which it is or will be a party, (i) have been duly authorized by all necessary action, (ii) do not and will not contravene (A) any of its Governing Documents, (B) any applicable Requirement of Law or (C) any material Contractual Obligation binding on or otherwise affecting it or any of its properties, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Loan Document) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its properties, except, in the case of clauses (ii)(B), (ii)(C) and (iv), to the extent where such contravention, default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal could not reasonably be expected to have a Material Adverse Effect.

 

(d)      Governmental Approvals. No material authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required in connection with the due execution, delivery and performance by any Loan Party of this Third Amendment or any other Loan Document to which it is or will be a party other than filings and recordings with respect to Collateral to be made, or otherwise delivered to the Collateral Agent for filing or recordation, on or prior to the Third Amendment Effective Date.

 

(e)      Enforceability of Loan Documents. This Third Amendment is, and each other Loan Document to which any Loan Party is or will be a party, when delivered hereunder, will be, a legal, valid and binding obligation of such Person, enforceable against such Person in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and by general principles of equity.

 

4.      [Reserved].

 

5.      Conditions to Effectiveness. This Third Amendment shall become effective only upon satisfaction in full, in a manner satisfactory to the Agents, of the following conditions precedent (the first date upon which all such conditions shall have been satisfied being hereinafter referred to as the "Third Amendment Effective Date"):

 

(a)      Payment of Fees, Etc. The Borrowers shall have paid all fees and expenses, including the Third Amendment Fee, required to be paid on or prior to the Third Amendment Effective Date pursuant to Section 2.06 or Section 12.04 of the Financing Agreement.

 

- 8 -

 

 

(b)      Representations and Warranties. After giving effect to this Third Amendment and the transactions contemplated hereby, the representations and warranties herein, in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered to any Secured Party pursuant hereto or thereto on or prior to the Third Amendment Effective Date shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the Third Amendment Effective Date as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of such earlier date).

 

(c)      No Default; Event of Default. After giving effect to this Third Amendment and the transactions contemplated hereby, no Default or Event of Default shall have occurred and be continuing on the Third Amendment Effective Date or result from this Third Amendment becoming effective in accordance with its terms.

 

(d)      Delivery of Documents.  The Agents shall have received on or before the Third Amendment Effective Date the following, each in form and substance reasonably satisfactory to the Agents and, unless indicated otherwise, dated the Third Amendment Effective Date:

 

(i)     this Third Amendment, duly executed by the Loan Parties, each Agent and the Required Lenders;

 

(ii)     an amendment to the Intercreditor Agreement, in form and substance reasonably satisfactory to the Agents, duly executed by the Loan Parties, the Collateral Agent and the Revolving Loan Agent;

 

(iii)     an amendment to the Revolving Loan Agreement, in form and substance reasonably satisfactory to the Agents, and duly executed by the Loan Parties, the Revolving Loan Agent and the requisite Revolving Loan Lenders;

 

(iv)     a certificate signed by the chief executive officer of each Loan Party, certifying as to the matters set forth in subsections (b) and (c) of this Section 5;

 

(v)     a certificate of the chief financial officer of the Parent, certifying that immediately after giving effect to this Third Amendment, the amendment to the Revolving Loan Agreement, and all Revolving Loans to be made on the Third Amendment Effective Date, Undrawn Availability is not less than $8,500,000; and

 

(vi)     a Borrowing Base Certificate (as defined in the Revolving Loan Agreement), calculated immediately after giving effect to this Third Amendment, the amendment to the Revolving Loan Agreement, and all Revolving Loans to be made on the Third Amendment Effective Date.

 

(e)      Prepayment. The Administrative Agent shall have received satisfactory evidence that the Borrowers have prepaid no less than $10,000,000 in aggregate principal amount of the Term Loan A pursuant to the terms of Section 2.05(b)(i) of the Financing Agreement. Notwithstanding anything to the contrary in the Financing Agreement, such prepayment shall be applied against the remaining installments of principal due on the Term Loan A in the inverse order of maturity.

 

- 9 -

 

 

(f)      Material Adverse Effect. There shall not have occurred since the Effective Date (as defined in the Financing Agreement) any event or development that has had or could reasonably be expected to have any Material Adverse Effect.

 

6.      Continued Effectiveness of the Financing Agreement and other Loan Documents. Each Loan Party hereby (a) acknowledges and consents to this Third Amendment, (b) confirms and agrees that the Financing Agreement and each other Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the Third Amendment Effective Date, all references in the Financing Agreement or any such other Loan Document to "the Financing Agreement", the "Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Financing Agreement shall mean the Financing Agreement as amended by this Third Amendment, and (c) confirms and agrees that, to the extent that the Financing Agreement or any such other Loan Document purports to assign or pledge to the Collateral Agent, for the benefit of the Agents and the Lenders, or to grant to the Collateral Agent, for the benefit of the Agents and the Lenders, a security interest in or Lien on any Collateral as security for the Obligations of the Loan Parties from time to time existing in respect of the Financing Agreement (as amended hereby) and the other Loan Documents, such pledge, assignment and/or grant of the security interest or Lien is hereby ratified and confirmed in all respects. This Third Amendment does not and shall not affect any of the obligations of the Loan Parties, other than as expressly provided herein, including, without limitation, the Loan Parties' obligations to repay the Term Loans in accordance with the terms of Financing Agreement or the obligations of the Loan Parties under the Financing Agreement (as amended hereby) or any other Loan Document to which they are a party, all of which obligations shall remain in full force and effect. Except as expressly provided herein, the execution, delivery and effectiveness of this Third Amendment shall not operate as a waiver of any right, power or remedy of any Agent or any Lender under the Financing Agreement or any other Loan Document nor constitute a waiver of any provision of the Financing Agreement or any other Loan Document.

 

7.      No Novation. Nothing herein contained shall be construed as a substitution or novation of the Obligations outstanding under the Financing Agreement or instruments securing the same, which shall remain in full force and effect, except as modified hereby.

 

8.      No Representations by Agents or Lenders. Each Loan Party hereby acknowledges that it has not relied on any representation, written or oral, express or implied, by any Agent or any Lender, other than those expressly contained herein, in entering into this Third Amendment.

 

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9.      Release. Each Loan Party hereby acknowledges and agrees that: (a) neither it nor any of its Subsidiaries has any claim or cause of action against any Agent or any Lender (or any of the directors, officers, employees, agents, attorneys or consultants of any of the foregoing) and (b) the Agents and the Lenders have heretofore properly performed and satisfied in a timely manner all of their obligations to the Loan Parties, and all of their Subsidiaries and Affiliates. Notwithstanding the foregoing, the Agents and the Lenders wish (and the Loan Parties agree) to eliminate any possibility that any past conditions, acts, omissions, events or circumstances would impair or otherwise adversely affect any of their rights, interests, security and/or remedies. Accordingly, for and in consideration of the agreements contained in this Third Amendment and other good and valuable consideration, each Loan Party (for itself and its Subsidiaries and Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the "Releasors") does hereby fully, finally, unconditionally and irrevocably release, waive and forever discharge the Agents and the Lenders, together with their respective Affiliates and Related Funds, and each of the directors, officers, employees, agents, attorneys and consultants of each of the foregoing (collectively, the "Released Parties"), from any and all debts, claims, allegations, obligations, damages, costs, attorneys' fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done, in each case, on or prior to the Third Amendment Effective Date directly arising out of, connected with or related to this Third Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use, operation or control of any of the assets of any Loan Party, or the making of any Loans or other advances, or the management of such Loans or other advances or the Collateral. Each Loan Party represents and warrants that it has no knowledge of any claim by any Releasor against any Released Party or of any facts or acts or omissions of any Released Party which on the date hereof would be the basis of a claim by any Releasor against any Released Party which would not be released hereby.

 

10.      Further Assurances. The Loan Parties shall execute any and all further documents, agreements and instruments, and take all further actions, as may be required under Applicable Law or as any Agent may reasonably request, in order to effect the purposes of this Third Amendment.

 

11.      Miscellaneous.

 

(a)      This Third Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Third Amendment by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart of this Third Amendment.

 

(b)      Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Third Amendment for any other purpose.

 

(c)      This Third Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

 

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(d)      Each Loan Party hereby acknowledges and agrees that this Third Amendment constitutes a "Loan Document" under the Financing Agreement. Accordingly, it shall be an immediate Event of Default under the Financing Agreement if (i) any representation or warranty made by any Loan Party under or in connection with this Third Amendment shall have been incorrect in any material respect (or in any respect if such representation or warranty is qualified or modified as to materiality or "Material Adverse Effect" in the text thereof) when made or deemed made, or (ii) any Loan Party shall fail to perform or observe any term, covenant or agreement contained in this Third Amendment.

 

(e)      Any provision of this Third Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

[Remainder of page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be executed and delivered as of the date set forth on the first page hereof.

 

	 	
			BORROWERS:

			
	 	 
	 	
			MC ASSEMBLY, LLC, as a Borrower

			
	 	 
	 	
			By:

				
			/s/ Steven Michael Waszak

			
	 	 	
			Name: Steven Michael Waszak

			
	 	 	
			Title:   Chief Financial Officer

			
	 	 
	 	 
	 	
			MC ASSEMBLY INTERNATIONAL, LLC, as a Borrower

			
	 	 
	 	
			By:

				
			/s/ Steven Michael Waszak

			
	 	 	
			Name: Steven Michael Waszak

			
	 	 	
			Title:   Chief Financial Officer

			
	 	 
	 	
			MC TEST SERVICE, INC., as a Borrower

			
	 	 
	 	
			By:

				
			/s/ Steven Michael Waszak

			
	 	 	
			Name: Steven Michael Waszak

			
	 	 	
			Title:   Chief Financial Officer

			
	 	
			 

			
	 	 
	 	
			SMTC MANUFACTURING CORPORATION OF CALIFORNIA, as a Borrower

			
	 	 
	 	
			By:

				
			/s/ Steven Michael Waszak

			
	 	 	
			Name: Steven Michael Waszak

			
	 	
			 

				
			Title:   Chief Financial Officer

			
	 	 
	 	
			SMTC MEX HOLDINGS INC., as a Borrower

			
	 	 
	 	
			By:

				
			/s/ Steven Michael Waszak

			
	 	 	
			Name: Steven Michael Waszak

			
	 	 	
			Title:   Chief Financial Officer

			

 

Amendment No. 3 to Financing Agreement

 

 

 

	 	
			GUARANTORS:

			
	 	 
	 	
			HTM HOLDINGS, INC.,

			as a Guarantor

			
	 	
			 

			
	 	 
	 	
			By:

				
			/s/ Steven Michael Waszak

			
	 	 	
			Name: Steven Michael Waszak

			
	 	 	
			Title:   Chief Financial Officer

			
	 	 
	 	 
	 	
			MC ASSEMBLY HOLDINGS, INC.,

			as a Guarantor

			
	 	
			By:

				
			/s/ Steven Michael Waszak

			
	 	 	
			Name: Steven Michael Waszak

			
	 	 	
			Title:   Chief Financial Officer

			
	 	 	 
	 	 	 
	 	
			SMTC CORPORATION,

			as a Guarantor

			
	 	
			 

			
	 	 
	 	
			By:

				
			/s/ Steven Michael Waszak

			
	 	 	
			Name: Steven Michael Waszak

			
	 	 	
			Title:   Chief Financial Officer

			
	 	 	 

 

Amendment No. 3 to Financing Agreement

 

 

 

	 	
			AGENTS:

			
	 	 
	 	
			TCW ASSET MANAGEMENT COMPANY LLC,

			as Administrative Agent and as Collateral Agent

			
	 	 
	 	
			By:

				
			/s/ Suzanne Grosso

			
	 	 	
			Name: Suzanne Grosso

			
	 	 	
			Title:   Managing Director

			
	 	 
	 	 
	 	
			LENDERS:

			
	 	 
	 	
			TCW DL VII FINANCING LLC

			 

			By: TCW Asset Management Company LLC, its Investment Advisor,

			as a Lender

			
	 	 
	 	
			By:

				
			/s/ Suzanne Grosso

			
	 	 	
			Name: Suzanne Grosso

			
	 	 	
			Title:   Managing Director

			
	 	 
	 	 
	 	
			WEST VIRGINIA DIRECT LENDING LLC

			 

			By: TCW Asset Management Company LLC,

			Its Investment Advisor,

			as a Lender

			
	 	 
	 	
			By:

				
			/s/ Suzanne Grosso

			
	 	 	
			Name: Suzanne Grosso

			
	 	 	
			Title:   Managing Director

			
	 	 
	 	 
	 	
			TCW BRAZOS FUND LLC

			 

			By: TCW Asset Management Company LLC, its Investment Advisor,

			as a Lender

			
	 	 
	 	
			By:

				
			/s/ Suzanne Grosso

			
	 	 	
			Name: Suzanne Grosso

			
	 	 	
			Title:   Managing Director

			

 

Amendment No. 3 to Financing Agreement

 

 

 

	 	
			TCW SKYLINE LENDING, L.P.

			 

			By: TCW Asset Management Company LLC, its Investment Advisor,

			as a Lender

			
	 	 
	 	
			By:

				
			/s/ Suzanne Grosso

			
	 	 	
			Name: Suzanne Grosso

			
	 	 	
			Title:   Managing Director

			

 

 

	 	
			NJ/TCW DIRECT LENDING LLC

			 

			By: TCW Asset Management Company LLC, its Investment Advisor,

			as a Lender

			
	 	 
	 	
			By:

				
			/s/ Suzanne Grosso

			
	 	 	
			Name: Suzanne Grosso

			
	 	 	
			Title:   Managing Director

			
	 	 	 
	 	 	 
	 	
			BTC HOLDINGS FUND I, LLC

			 

			By: Blue Torch Credit Opportunities Fund I LP, its sole member

			By: Blue Torch Credit Opportunities GP LLC, its general partner

			
	 	 
	 	
			By:

				
			/s/ Kevin Genda

			
	 	 	
			Name: Kevin Genda

			
	 	 	
			Title:   Authorized Signer

			
	 	 	 
	 	 	 
	 	
			BTC HOLDINGS SC FUND LLC

			 

			By: Blue Torch Credit Opportunities SC Master Fund LP, its sole member

			By: Blue Torch Credit Opportunities SC GP LLC, its general partner

			
	 	 
	 	
			By:

				
			/s/ Kevin Genda

			
	 	 	
			Name: Kevin Genda

			
	 	 	
			Title:   Authorized Signer

			

 

Amendment No. 3 to Financing Agreement

 

 

 

	 	
			SWISS CAPITAL BTC PRIVATE DEBT OFFSHORE SP

			 

			By: Blue Torch Capital LP, acting solely in its capacity as Investment Advisor to the Manager of Swiss Capital BTC Private Debt Offshore Fund SP, a segregated portfolio of Swiss Capital Private Debt (Offshore) Funds SPC

			
	 	 
	 	
			By:

				
			/s/ Kevin Genda

			
	 	 	
			Name: Kevin Genda

			
	 	 	
			Title:   Authorized Signer

			
	 	 	 
	 	 	 
	 	
			SC BTC PRIVATE DEBT FUND L.P.

			 

			By: Blue Torch Capital LP, acting solely in its capacity as Investment Advisor to the Manager of SC BTC Private Debt Fund L.P.

			
	 	 
	 	
			By:

				
			/s/ Kevin Genda

			
	 	 	
			Name: Kevin Genda

			
	 	 	
			Title:   Authorized Signer

			

 

Amendment No. 3 to Financing AgreementEX-10.1

 Exhibit 10.1 

BARRICK GOLD CORPORATION 

AMENDED AND RESTATED 

DIVIDEND REINVESTMENT PLAN 

EFFECTIVE FOR DIVIDENDS PAYABLE 

AFTER AUGUST 31, 2015 

AMENDED AND RESTATED AS OF 

AUGUST 12, 2019 

 BARRICK GOLD CORPORATION 

AMENDED AND RESTATED DIVIDEND REINVESTMENT PLAN 

Introduction 
 This dividend reinvestment
plan (the “Plan”) is being offered to the registered or beneficial holders (the “Shareholders”) of common shares (“Common Shares”) of Barrick Gold Corporation (the “Corporation”)
who reside in Canada or the United States as an alternative to the receipt of regular cash dividends. Under the Plan, Shareholders can automatically reinvest cash dividends (net of any applicable withholding tax) paid on their Common Shares in
additional Common Shares, either at no discount or at a discount of up to 5% of the Average Market Price (as defined below), as determined by the Corporation from time to time in its sole discretion. 

Full investment of cash dividends (net of any applicable withholding tax) is possible under the Plan because the Plan permits fractions of
Common Shares as well as whole Common Shares to be purchased and held for participants. In addition, dividends in respect of whole and fractional Common Shares held in the Plan will be automatically reinvested in further Common Shares. Common Shares
issued under the Plan will be issued directly from the treasury of the Corporation. 
 No Commissions or Administrative Costs 

No brokerage commissions are payable in connection with the purchase of Common Shares under the Plan and all administrative costs will be borne
by the Corporation. 
 Use of Proceeds 

Proceeds received by the Corporation upon the purchase of new Common Shares under the Plan will form part of the working capital of the
Corporation and will be used for general corporate purposes. 
 Administration 

AST Trust Company (Canada) (the “Agent”) has been retained to act as the Agent for the participants under the Plan pursuant to
an agreement which may be terminated by the Corporation or the Agent at any time. The Corporation will promptly pay over to the Agent, on behalf of the participants in the Plan, all cash dividends due on their Common Shares and the Agent will
purchase new Common Shares for the participants directly from the treasury of the Corporation on the dividend payment date. New Common Shares purchased under the Plan will be registered in the name of the Agent, or its nominee, as Agent for the
participants in the Plan. 
 The Corporation reserves the right to interpret and regulate the Plan as it deems necessary or desirable.
Unless the context otherwise requires, words importing only the singular number shall include the plural and vice versa, words importing the masculine gender shall include feminine and neuter genders and vice versa, and words importing persons shall
include individuals, partnerships, associations, trusts, unincorporated organizations and corporations. 

 Eligible Participants 

Any registered holder of Common Shares who is a resident of Canada or the United States is eligible to join in the Plan at any time. Beneficial
owners of Common Shares whose Common Shares are not registered in their own names may participate in the Plan only (1) by transferring such Common Shares into their own name or into a specific segregated registered account such as a numbered
account with a bank, trust company or broker, or (2) if such Common Shares are held through CDS Clearing and Depository Services (the “Depository”), by enrolling in the Plan through a participant in the Depository (a
“Depository Participant”). 
 Beneficial owners of Common Shares whose Common Shares are held in a numbered nominee account
with a bank, trust company or broker may arrange to enrol such account in the Plan. If a beneficial owner holds Common Shares in more than one such account, or in such an account or accounts as well as in such owner’s own name, such Common
Shares may be dealt with separately with respect to the Plan. For example, an owner can elect to participate in the Plan in respect of the Common Shares held in one account but not in respect of those held in another. Furthermore, if beneficial
owners of Common Shares hold such shares through the facilities of a Depository, they can arrange to treat each of their Common Shares separately with respect to the Plan. For example, such beneficial owners can choose to participate in the Plan in
respect of some of the Common Shares but not in respect of others. 
 The distribution of Common Shares under the Plan is registered under
the United States Securities Act of 1933 (the “Securities Act”), and Common Shares are offered for sale in both Canada and the United States. Shareholders that are resident in jurisdictions other than Canada or the United States can
also participate in the Plan, subject to any restrictions of laws in such Shareholder’s jurisdiction of residence and provided such laws do not subject the Corporation or the Plan to any additional legal, regulatory, filing or registration
requirements. 
 Enrolment 
 General

 Shareholders may join the Plan by completing the Plan Enrolment Form attached to the Plan, signing it and returning it to the Agent
within the applicable deadlines set out below. Additional Forms may be obtained from the Agent at any time upon written request addressed to the Agent. The Corporation may deny the right to participate in the Plan to any person or terminate the
participation of any participant in the Plan if the Corporation deems it advisable under any laws or regulations. 
 The Plan Enrolment Form
directs the Corporation to forward to the Agent all of the participating Shareholder’s cash dividends received on the Common Shares and directs the Agent to invest such dividends in the purchase of new Common Shares on behalf of the
shareholder. If a beneficial owner holds Common Shares in, for example, more than one brokerage account, and wishes to participate in the Plan in respect of Common Shares in all such accounts, they may enrol through the intermediary that currently
holds their Common Shares, provided they do so in sufficient time for notice to be provided to the Agent within the applicable deadlines set out below. 

  
 -2- 

 Depository Participants 

Beneficial owners of Common Shares whose Common Shares are held through a Depository may enrol through the Depository Participant that
currently holds their Common Shares, provided they do so in sufficient time to allow a Depository Participant to notify the Depository no later than 3:30 p.m. (Toronto time) on that dividend record date. The Depository shall in turn notify the Agent
by 2:00 p.m. (Toronto time) a business day after the relevant dividend record date. 
 Effective Date of Participation 

Following receipt by the Agent of a properly completed Plan Enrolment Form, participation in the Plan becomes effective on the next record date
for any dividend declared on the Common Shares provided that the Plan Enrolment Form is received not less than five business days before such record date. Dividend record dates are normally the last day of the month preceeding the payment date of
the dividend of each quarter in which the Corporation declares a dividend. 
 Ongoing Enrolment 

Once a Shareholder has enrolled in the Plan, participation continues automatically unless terminated in accordance with the terms of the Plan.
However, participants are advised that Common Shares acquired outside of the Plan may not be automatically enrolled in the Plan. Participants should contact the Agent, their intermediary or the Depository Participant who holds their shares, if
applicable, to confirm which of the Common Shares owned by them are enrolled in the Plan. 
 Price and Valuation of New Common Shares 

The price at which the Agent will purchase new Common Shares from the Corporation on the dividend payment dates with cash dividends on Common
Shares will be either (1) at a discount of up to 5% of the weighted average of the trading prices for a board lot of Common Shares on The Toronto Stock Exchange (the “Exchange”) for a period of five trading days on which at
least a board lot was traded immediately preceding a dividend payment date (the “Average Market Price”), or (2) at the Average Market Price with no discount. The Corporation will from time to time in its sole discretion
determine whether the Plan will offer any discount to the Average Market Price of Common Shares, and, if so, the amount of the discount. 

Participants’ Accounts and Statements 

The Agent will maintain a separate account for each registered participant. Where a participating beneficial owner holds his or her Common
Shares through a Depository, the Agent will maintain an account for and in the name of the Depository and the appropriate Depository Participant will provide each such participating beneficial owner with confirmation of his or her purchase of Common
Shares through the Plan. 
 On each dividend payment date, the Corporation will advise the Agent of the prices for the new Common Shares to
be purchased by the Agent on behalf of the participants and the number of new Common Shares to be issued. Each registered participant’s account will be credited by the Agent with that number of Common Shares purchased for that participant, 

  
 -3- 

 including fractions computed to four decimal places, which is equal to the cash dividends to be invested for
each participant divided by the applicable purchase price for such Common Shares (as set out above under “Price and Valuation of New Common Shares”). In like fashion, the accounts of each participating beneficial owner of Common Shares
will be credited with that number of Common Shares purchased on their behalf through the facilities of the relevant Depository and relevant Depository Participant. 

As soon as practicable following each dividend payment date, the Agent will send statements of account to registered participants setting out
the number of whole and fractional Common Shares acquired by reinvestment of cash dividends. 
 These statements are a participant’s
only record of the cost of each purchase of Common Shares, and accordingly, should be retained by such participant for income tax purposes. In addition, each registered participant will receive annually the appropriate tax information for reporting
dividend income. 
 Generally, Common Shares will be registered in the name of the Agent or its nominee and held by the Agent for a
participant under the Plan. For participants holding Common Shares through a Depository, such Common Shares will be registered in the name of the relevant Depository and held for the benefit of its relevant Depository Participants under the Plan. No
share certificates will be issued for Common Shares acquired under the Plan. Common Shares may not be sold, transferred, pledged or otherwise disposed of by the participant while such Common Shares remain in the Plan. A participant who wishes to
sell, transfer, pledge or dispose of any Common Shares must withdraw them from the Plan by instructing the Agent to issue, in the name of the participant, a share certificate representing such Common Shares. 

A participant may, at any time upon written request to the Agent, have share certificates issued and registered in the participant’s name
for any number of whole Common Shares owned by such participant without terminating participation in the Plan. Otherwise, share certificates will not be issued to participants for Common Shares. No certificate for a fraction of a Common Share will
be issued. 
 Normally, requests will be processed within three weeks of the receipt of your request. If the request is received by the
Agent less than five business days prior to a dividend record date, the request will be processed as soon as practicable after the dividend payment date. 

Non-Registered Participants should contact their intermediary or Depository Participant who holds their shares to determine the relevant
procedures for withdrawing Common Shares from the Plan. 
 Termination of Participation 

General 
 A participant may
terminate participation in the Plan at any time by written notice to the Agent (or, where appropriate, to a Depository Participant, as set out below). The Agent will then settle the participant’s account by issuing a share certificate for the
number of whole Common Shares standing to the credit of the participant and by purchasing for cash any fraction of a Common Share. The amount of the payment for any such fraction will be based on the last

  
 -4- 

 
dividend reinvestment price paid by the Agent for such new Common Shares purchased out of cash dividends to be reinvested. Normally, request will be processed within three weeks of the receipt of
your request for termination by your Agent. If the notice is received by the Agent less than five business days prior to a dividend record date, the termination and settlement of the participant’s account will take place as soon as practicable
after the dividend payment date. 
 Participation in the Plan will also be terminated upon receipt by the Agent of written notice of the
death of a participant. Proof of the legal representative’s authority to act and supporting documentation must accompany the notice of the death of a participant. Certificates for Common Shares and cash for any fractional entitlement will be
issued in the name of the deceased participant and/or in the name of the estate of the deceased participant, as appropriate, and the Agent will send such certificates and cash payment for any fraction of a Common Share to the representative of the
deceased participant. 
 Upon termination of participation, a participant may request that all Common Shares held for the participant’s
account be sold. Such sale will be made by the Agent, through a registered dealer or stockbroker designated by the Agent. The proceeds of such sale, less brokerage commissions and transfer taxes, if any, will be paid to the participant by the Agent.
Common Shares sold pursuant to such a request may be commingled with Common Shares of other participants, in which case the proceeds to each participant will be based upon the average sale price of all Common Shares so commingled. With respect to
any fraction of a Common Share, the Agent will purchase such fraction for cash at a price determined in the same manner as in the case of whole Common Shares sold for the participant. Written requests for sale of Common Shares received less than
five Business Days prior to a dividend record date will be processed as soon as practicable after that dividend payment date. 
 All
payments of cash under the Plan will be made in either Canadian or United States currency. The Agent will sell shares through the facilities of the TSX and make payments in Canadian currency where the participant has a Canadian mailing address and
sell shares through the facilities of the NYSE and make payments in United States currency where the participant has a U.S. mailing address, in each case as such address is shown on the records of the Agent. 

Non-Registered Participants should contact their intermediary or Depository Participant who holds their shares to determine the procedures for
termination of their participation and selling of shares from the plan, where applicable. 
 Depository Participants 

Where participants hold their Common Shares through a Depository Participant and Depository, any notice or actions must be delivered to or
performed by the relevant Depository Participant. For greater certainty, if notice or termination is not received by the relevant Depository Participant at least five business days before a dividend record date, termination will not occur until
after the next dividend record date and after investment has been completed. 

  
 -5- 

 Rights Offerings, Stock Splits and Stock Dividends 

In the event that the Corporation makes available to its Shareholders rights to subscribe for additional shares or other securities, rights
certificates will be issued to participants for their whole Common Shares. No such rights will be made available in respect of fractions of Common Shares. Instead, the Agent will sell any rights relating to such fractions at a time and price
determined by the Agent and participants will be paid their proportionate interests in the proceeds of such sale. 
 Any Common Shares
distributed pursuant to a stock dividend or a stock split on Common Shares will be retained by the Agent and credited proportionately to the accounts of participants. 

In the event of a change, reclassification or conversion of the Common Shares into other shares or securities or of any further change,
reclassification or conversion of such other shares or securities, into other shares or securities, the Plan will continue to apply to the shares or securities resulting from that event and references herein to the Common Shares and to Common Shares
will be deemed to be references to the shares or securities resulting from that event. 
 Voting of Common Shares 

Whole Common Shares held on the record date for a vote of Shareholders may be voted in the same manner as the participant’s Common Shares
of record may be voted, either in person or by proxy. 
 Responsibilities of the Corporation and the Agent 

Neither the Corporation nor the Agent is liable for any act, or for any good faith omission to act, including, without limitation, for
liability: 
  

	 	(a)	 arising out of a failure to terminate a participant’s account upon such participant’s death prior to
receipt of notice in writing of such death; or 

  

	 	(b)	 relating to the prices at which Common Shares are purchased or sold for the participant’s account and the
times at which such purchases or sales are made. 

 PARTICIPANTS SHOULD
RECOGNIZE THAT NEITHER THE CORPORATION NOR THE AGENT CAN ASSURE A
GAIN OR PROTECT AGAINST LOSS AS A RESULT OF THEIR HOLDING COMMON
SHARES. 
 Amendment, Suspension or Termination of the Plan 

The Corporation reserves the right to amend, suspend or terminate the Plan at any time. The Corporation will send written notice to the
participants of any material amendment, suspension or termination. Any amendment of the Plan which materially affects the rights of participants in the Plan will be subject to the prior approval of the Exchange. If the Plan is terminated, the Agent
will remit to participants certificates registered in their name for whole Common Shares, together with the proceeds from the sale of any fractions of Common Shares. If the Plan is suspended, subsequent dividends on Common Shares will be paid in
cash. 

  
 -6- 

 Governing Law 

The Plan shall be governed and construed in accordance with the laws in force of the Province of Ontario, Canada and the federal laws of Canada
applicable therein. 
 Effective Date 

The Plan is effective for dividends payable after August 31, 2015. 

Notices 
 All notices required to be given
to participants under the Plan will be mailed to participants at the address shown on the records of the Agent. 
 All communications to the
Agent and requests for forms or information regarding the Plan, should be directed to the Agent by phone, mail, fax or e-mail to: 
  

			
		
	BY PHONE:	  	 Toll free in North America: 1-800-387-0825

Toronto: 416-682-3860

		
	BY FAX:	  	 1-888-249-6189
 Outside Canada/U.S.: 514-285-8457

		
	BY EMAIL:	  	inquiries@astfinancial.com
		
	WEBSITE:	  	www.astfinancial.com/ca-en
		
	BY MAIL:	  	 AST Trust Company (Canada)
 P.O. Box 700

Station B
 Montreal, Quebec H3B 3K3

  
 -7- 

 CANADIAN FEDERAL INCOME TAX CONSIDERATIONS 

Summary of Principal Canadian Federal Income Tax Considerations 

The following is a general summary of the principal Canadian federal income tax considerations generally applicable to participants in the
Plan. It is assumed for the purposes of this summary that the participant deals at arm’s length and is not affiliated with the Corporation and holds Common Shares as capital property. Generally, Common Shares are considered to be capital
property to a holder provided that the holder does not hold the Common Shares in the course of carrying on a business and has not acquired the Common Shares in one or more transactions considered to be an adventure or concern in the nature of trade.
Certain participants resident in Canada whose Common Shares might not otherwise qualify as capital property may, in certain circumstances, make an irrevocable election in accordance with subsection 39(4) of the Income Tax Act (Canada) (the
“Tax Act”) to have their Common Shares and every “Canadian security” (as defined in the Tax Act) owned by such participant in the taxation year of the election and in all subsequent taxation years deemed to be capital
property. 
 This summary is not applicable to a participant: (i) that is a “financial institution” (within the meaning of
the Tax Act) for the purposes of the “mark-to-market” rules contained in the Tax Act; (ii) that is a “specified financial institution” (within the meaning of the Tax Act); (iii) an interest in which would be a “tax
shelter investment” (within the meaning of the Tax Act); (iv) that has elected to report its “Canadian tax results” (as defined in the Tax Act) in a currency other than the Canadian currency; or (v) that has entered a
“synthetic disposition arrangement” or “derivative forward agreement” (in each case as defined in the Tax Act) or a “synthetic equity arrangement” (as defined in Proposed Amendments released July 31, 2015) in respect of
Common Shares. Any such participant should consult its own tax advisor with respect to an investment in the Common Shares. 
 This summary
is based on the current provisions of the Tax Act, the regulations thereunder (the “Regulations”), all specific proposals to amend the Tax Act or the Regulations publicly announced by the Minister of Finance (Canada) prior to the
date hereof (“Proposed Amendments”) and the current published administrative practices of the Canada Revenue Agency (the “CRA”). This summary does not otherwise take into account or anticipate any changes in law,
whether by judicial, administrative or legislative decision or action, nor does it take into account provincial, territorial or foreign income tax legislation or considerations, which may differ from those described. This summary is not exhaustive
of all possible Canadian federal income tax consequences that may affect a participant in the Plan. 
 This summary is of a general
nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular participant, and no representation with respect to the Canadian federal income tax consequences to any particular participant is made.
Consequently, prospective participants are advised to consult their own tax advisors with respect to their particular circumstances. 

Foreign Exchange 
 For the
purposes of the Tax Act, all amounts expressed in a currency other than Canadian dollars relating to the acquisition, holding or disposition of a Common Share, 

  
 -8- 

 
including dividends, adjusted cost base and proceeds of disposition, must be determined in Canadian dollars using the relevant rate of exchange quoted by the Bank of Canada at noon on the day the
amount first arose or such other rate of exchange as is acceptable to the CRA. 
 Residents of Canada 

The following summary is generally applicable to a participant who, at all relevant times for purposes of the Tax Act, is, or is deemed to be,
resident in Canada. 
 Dividends 

A participant will be subject to tax under the Tax Act on all dividends paid on Common Shares (including where such shares are held of record
by the Agent for the account of the participant pursuant to the Plan) which are reinvested in Common Shares under the Plan (as well as on any dividends deemed under the Tax Act to be received on Common Shares) in the same manner as the participant
would have been if such dividends had been received directly by the participant. Such dividends paid to (or deemed to be received by) a participant who is an individual (including most trusts) will be subject to the gross-up and dividend tax credit
rules in the Tax Act normally applicable to dividends received from taxable Canadian corporations, including the enhanced gross-up and dividend tax credit in respect of dividends designated by the Corporation as “eligible dividends.” There
may be limitations on the ability of the Corporation to designate dividends as “eligible dividends.” 
 A participant that is a
corporation will include such dividends in computing its income and generally will deduct the amount of such dividends in computing its taxable income, with the result that no tax will be payable by it in respect of such dividends. In certain
circumstances, subsection 55(2) of the Tax Act (as proposed to be amended by Proposed Amendments released on July 31, 2015) will treat a taxable dividend received by a participant that is a corporation as proceeds of disposition or a capital gain.
Participants that are corporations should consult their own tax advisors having regard to their own circumstances. A participant that is a “private corporation” or “subject corporation” (as such terms are defined in the Tax Act)
may be liable under Part IV of the Tax Act to pay a refundable tax of 33 1/3% of dividends received or deemed to be received on the Common Shares to the extent that such dividends are deductible in computing the participant’s taxable income.

 The cost for tax purposes to a participant of Common Shares purchased on the reinvestment of dividends will be the Canadian dollar
equivalent of the price paid by the Agent for the Common Shares. The cost of such Common Shares will be averaged with the adjusted cost base of all other Common Shares held by the participant at the time such Common Shares are acquired for purposes
of subsequently computing the adjusted cost base of each such Common Share owned by the participant. 
 Dispositions 

On a disposition or deemed disposition of a Common Share (including by the Agent on behalf of the participant), the participant will realize a
capital gain (or capital loss) equal to the amount by which the participant’s proceeds of disposition, net of any reasonable costs of disposition, are greater than (or less than) the participant’s adjusted cost base of the

  
 -9- 

 
Common Share. Proceeds of disposition will not include an amount that is otherwise required to be included in the participant’s income. The payment of cash in respect of any fraction of a
Common Share on termination of participation in the Plan will constitute a disposition of such fraction of a Common Share for proceeds of disposition equal to the cash payment. 

One-half of any capital gains (or capital losses) realized by a participant will be required to be included in computing the
participant’s income as a taxable capital gain (or allowable capital loss). An allowable capital loss will be deductible against a taxable capital gain realized in the year or in any of the three years preceding the year or any year following
the year to the extent and under the circumstances described in the Tax Act. Capital gains realized by an individual (including certain trusts) may be subject to alternative minimum tax. A “Canadian- controlled private corporation” (as
defined in the Tax Act) may be liable to pay an additional 6 2/3% refundable tax on certain investment income, including taxable capital gains. 

Under specific rules in the Tax Act, any capital loss realized by a corporation on the disposition of a Common Share may be reduced by the
amount of certain dividends which were received or were deemed to have been received on such share. Similar rules may apply where a corporation is a member of a partnership or a beneficiary of a trust that disposes of such shares or where a trust or
partnership of which a corporation is a beneficiary or member is a member of a partnership or beneficiary of a trust that disposes of such shares. Participants should consult their own tax advisors for specific advice regarding the application of
the relevant “stop-loss” provisions in the Tax Act. 
 Non-Residents of Canada 

The following summary is generally applicable to a participant who, for purposes of the Tax Act and any applicable income tax treaty, is not
resident, nor is deemed to be resident, in Canada, and who does not use or hold and is not deemed to use or hold Common Shares in carrying on business in Canada. Special rules which are not discussed in this summary may apply to a non-resident
participant that is an insurer which carries on business in Canada and elsewhere. 
 Dividends 

Dividends paid or credited or deemed to be paid or credited on Common Shares to a non-resident of Canada (including where such shares are held
of record by the Agent for the account of the non-resident pursuant to the Plan) are generally subject to Canadian withholding tax, whether or not such dividends are reinvested under the terms of the Plan. Under the Tax Act, the rate of withholding
tax is 25% of the gross amount of such dividends, which rate may be subject to reduction under the provisions of an applicable tax treaty. Under the Canada-United States Income Tax Convention (the “U.S. Treaty”), a
participant who is resident in the United States for the purposes of the U.S. Treaty and who is entitled to the benefits of such treaty will generally be subject to Canadian withholding tax at a rate of 15% of the amount of such dividends. In
addition, under the U.S. Treaty, dividends may be exempt from Canadian withholding tax if paid to certain participants that are qualifying religious, scientific, literary, educational or charitable tax-exempt organizations, or are qualifying trusts,
companies organizations or other arrangements operated exclusively to administer or provide pension, retirement or employee benefits which are exempt from tax in the U.S., and that have complied 

  
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with specific administrative procedures. Dividends to be reinvested in Common Shares under the Plan for non-resident participants will be reduced by the amount of any applicable Canadian
withholding tax. 
 Dispositions 

A non-resident participant will not be subject to tax under the Tax Act on any capital gain realized on a disposition of Common Shares unless
those Common Shares constitute “taxable Canadian property” at the time of the disposition and the participant is not entitled to relief under an applicable income tax treaty or convention. 

Generally, Common Shares will not be taxable Canadian property to a participant at a particular time provided that either: (i) the Common
Shares are listed on a designated stock exchange (such as the Exchange or the New York Stock Exchange) at that time and at no time during the 60-month period that ends at that time did the participant, persons with whom the participant did not deal
at arm’s length, or the participant together with such persons, own 25% or more of the issued shares of any class or series of the Corporation, or (ii) at no time during such 60-month period did the Common shares derive more than 50% of
their value from any combination of: (a) real or immovable property situated in Canada, (b) “timber resource property” (within the meaning of the Tax Act), (c) “Canadian resource property” (within the meaning of the Tax Act)
or (d) options in respect of, or interests in, or for civil law, rights in any of the foregoing, whether or not the property exists. A Common Share may also be taxable Canadian property where the participant elected to have such Common Share
treated as taxable Canadian property upon ceasing to be a resident of Canada, and in certain other circumstances. 
 Even if a Common Share
is considered to be taxable Canadian property of a participant at the time of its disposition, a capital gain realized on the disposition may nevertheless be exempt from tax under the Tax Act pursuant to the terms of an applicable income tax treaty
or convention. 
 Under the U.S. Treaty, a capital gain realized on the disposition of a Common Share by a participant who is entitled to
the benefits of such treaty generally will be exempt from tax under the Tax Act except where the Common Share at the time of disposition derives its value principally from real property situated in Canada including rights to explore for or exploit
mineral deposits in Canada. 
 Generally, if a Common Share constitutes taxable Canadian property to a participant at the time of its
disposition and any capital gain realized by the participant on the disposition is not exempt from tax under the Tax Act by virtue of an applicable income tax treaty or convention, the participant will be required to include one-half of the amount
of the capital gain in its income for the year as a taxable capital gain. Subject to and in accordance with the provisions of the Tax Act, one-half of any capital loss realized by a participant in a taxation year from the disposition of taxable
Canadian property may be deducted as an allowable capital loss from any taxable capital gains realized by the participant in the year from the disposition of taxable Canadian property. If allowable capital losses for a year exceed taxable capital
gain from the disposition of taxable Canadian property, the excess may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year from net taxable capital gains realized
in such years from the disposition of taxable 

  
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Canadian property to the extent and in the circumstances prescribed by the Tax Act. Non-residents who dispose of taxable Canadian property are required to
file a Canadian income tax return for the year of disposition, including where any resulting capital gain is not subject to tax under the Tax Act by virtue of an applicable income tax treaty or convention. 

  
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 UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS 

The following is a summary of material United States federal income tax considerations generally applicable to certain participants in the
Plan. The summary is based upon the Internal Revenue Code of 1986, as amended (the “Code”), existing and proposed regulations promulgated thereunder, and judicial decisions and administrative interpretations, as in effect on the
date of the Plan, all of which are subject to change, possibly with retroactive effect. These United States federal income tax considerations apply only to a person or entity who, for United States federal income tax purposes, is: a citizen or
resident of the United States; a corporation or other entity organized under the laws of the United States or of any political subdivision thereof; an estate whose income is subject to United States federal income taxation regardless of its source;
or a trust (i) if a United States court can exercise primary jurisdiction over the trust’s administration and one or more United States persons have the authority to control all substantial decisions of the trust, or (ii) that has
elected to be treated as a United States person under applicable Treasury regulations. 
 This summary does not address the United States
federal income tax consequences for participants that are subject to special provisions under the Code, including the following participants: (i) participants that are tax-exempt organizations, qualified retirement plans, individual retirement
accounts, or other tax-deferred accounts; (ii) participants that are financial institutions, insurance companies, real estate investment trusts, or regulated investment companies or that are broker-dealers, dealers, or traders in securities or
currencies that elect to apply a mark-to-market accounting method; (iii) participants that have a “functional currency” other than the United States dollar; (iv) participants that are liable for the alternative minimum tax under
the Code; (v) participants that own Common Shares as part of a straddle, hedging transaction, conversion transaction, constructive sale, or other arrangement involving more than one position; (vi) participants that hold the Common Shares
other than as a capital asset within the meaning of Section 1221 of the Code; (vii) participants that own, directly or indirectly, 5% or more, by voting power or value, of the Corporation; (viii) partnerships or other entities
classified as partnerships for United States federal income tax purposes; (ix) investors in pass-through entities; and (x) certain former citizens or residents of the United States. Participants that are subject to special provisions under
the Code, including participants described immediately above, should consult their own tax advisors regarding the tax consequences of reinvesting cash dividends in additional Common Shares under the Plan. This summary does not include any discussion
of tax consequences to participants in the Plan other than United States federal income tax consequences. Participants are urged to consult their own tax advisors regarding any United States estate and gift, state and local, and foreign tax
consequences of participating in the Plan. 
 Partners of entities that are classified as partnerships for United States federal income tax
purposes should consult their own tax advisors regarding the United States federal income tax consequences of reinvesting cash dividends in additional Common Shares under the Plan. 

Subject to the “passive foreign investment company” (“PFIC”) discussion below, the gross amount of any distribution
(including any Canadian taxes withheld therefrom) paid on Common Shares generally should be included in the gross income of a participant as foreign 

  
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source dividend income to the extent such distribution is paid out of current or accumulated earnings and profits of the Corporation, as determined under United States federal income tax
principles. To the extent that the amount of any distribution exceeds the Corporation’s current and accumulated earnings and profits for a taxable year, the distribution is treated as a tax-free return of capital to the extent of the
participant’s adjusted tax basis in the Common Shares. Then, to the extent that such distribution exceeds the participant’s adjusted tax basis, it is treated as a sale or exchange and taxed as a capital gain. Subject to certain limitations
under the Code, participants who are subject to United States federal income tax will be entitled to a credit or deduction for Canadian income taxes withheld from any distributions. 

Dividends received by non-corporate participants may be subject to United States federal income tax at lower rates (generally 20% plus the new
3.8% unearned income Medicare contribution tax on higher income taxpayers) than other types of ordinary income if certain conditions are met. These conditions include the Corporation not being classified as a PFIC, the Corporation being a
“qualified foreign corporation”, the participant’s satisfaction of a holding period requirement, and the participant not treating the distribution as “investment income” for purposes of the investment interest deduction
rules. 
 In the case of participants that are domestic corporations, distributions from the Corporation generally are not eligible for the
dividends received deduction. 
 A participant will be treated for United States federal income tax purposes as having received a
distribution in an amount equal to the fair market value of the Common Shares acquired with reinvested dividends pursuant to the Plan plus the amount of any Canadian income tax withheld therefrom. The fair market value of each Common Share so
acquired will be equal to 100% of the average of the high and low sale prices of Common Shares on the dividend payment date, which amount may be higher or lower than the Average Market Price used to determine the number of Common Shares acquired
under the Plan. A participant’s tax basis per share for Common Shares purchased pursuant to the Plan will be equal to the fair market value of the share (as described in the preceding sentence). A participant’s holding period for Common
Shares purchased with dividends will begin on the day following the dividend payment date. 
 Participants generally will recognize a
taxable gain or loss when they sell or exchange Common Shares and when they receive cash payments for fractional shares credited to their accounts upon withdrawal from or termination of the Plan or otherwise. The amount of this gain or loss will be
equal to the difference between the amount a participant receives for his or her Common Shares or fraction thereof and the participant’s adjusted tax basis in these Common Shares or fraction thereof. The gain or loss will be a capital gain or
loss and will be a long-term capital gain or loss if the holding period for such Common Shares exceeds one year. Capital gain of a non-corporate United States holder is generally taxed at a maximum rate of 20% (plus the new 3.8% unearned income
Medicare contribution tax on higher income taxpayers) if the property has been held for more than one year. The deductibility of capital losses is subject to limitations. The gain or loss realized by participants who are United States persons will
generally be gain or loss from sources within the United States for foreign tax credit limitation purposes. 

  
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 The Corporation will be a passive foreign investment company (“PFIC”) for
United States federal income tax purposes in any taxable year if 75% or more of its gross income (including the pro rata share of the gross income of any corporation in which it is considered to own, directly or indirectly, 25% or more of the shares
by value) is passive income, or on average at least 50% of the gross value of its assets is held for the production of, or produces, passive income. 

PFIC status is determined on an annual basis. The Corporation does not expect to be a PFIC for the taxable year ending December 31, 2015, or
thereafter. However, because the Corporation’s income and assets and the nature of its activities may vary from time to time, no assurance can be given that the Corporation will not be considered a PFIC for any taxable year. If a participant
owns Common Shares during a taxable year in which the Corporation is a PFIC, the PFIC rules generally will apply to a participant thereafter, even if in subsequent taxable years the Corporation no longer meets the test described above to be treated
as a PFIC. No ruling will be sought from the Internal Revenue Service (the “IRS”) regarding whether the Corporation is a PFIC. 

In general, if the Corporation were to be treated as a PFIC, certain adverse rules would apply to dividends received from the Corporation and
to dispositions of Common Shares (potentially including dispositions that would not otherwise be taxable). Participants are urged to consult their tax advisors about the PFIC rules in connection with their holding of Common Shares. 

Under current United States law, if the Corporation is a PFIC in any year, a participant must file an annual return on IRS Form 8621, which
describes the income received (or deemed to be received pursuant to a QEF Election) from the Corporation, any gain realized on a disposition of common shares and certain other information. 

Dividends on and proceeds arising from a sale of common shares generally will be subject to information reporting and backup withholding tax,
currently at the rate of 28%, if (a) a participant fails to furnish its correct United States taxpayer identification number (generally on Form W-9), (b) the withholding agent is advised the participant furnished an incorrect United States
taxpayer identification number, (c) the withholding agent is notified by the IRS that the participant has previously failed to properly report items subject to backup withholding tax, or (d) a participant fails to certify, under penalty of
perjury, that the participant has furnished its correct United States taxpayer identification number and that the IRS has not notified the participant that it is subject to backup withholding tax. However, participants that are corporations
generally are excluded from these information reporting and backup withholding tax rules. Amounts withheld as backup withholding may be credited against a participant’s United States federal income tax liability, and a participant may obtain a
refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information. 

United States individuals are required to report an interest in any “specified foreign financial asset” if the aggregate value of
such assets owned by the United States individual exceeds U.S.$50,000 (or such higher amount as the IRS may prescribe in future 

  
 -15- 

 
guidance). Stock issued by a foreign corporation is treated as a specified foreign financial asset for this purpose. 

  
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