Document:

Letter of waiver and amendment, Wachovia Capital Finance Corporation (Central)

 Exhibit 10.54 
 [LETTERHEAD OF WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL)] 
 April 2, 2009

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

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

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

  

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

  

	2.	Waiver of Existing Events of Default. 

  

	 	(a)	Two (2) Events of Default have occurred and are existing under Section 9.1(a)(ii) of the US Loan Agreement as a result of the US Borrowers breaching:

  

	 	(i)	the EBITDA covenant in Section 8.18 of the US Loan Agreement. More specifically, each US Borrower failed to ensure that EBITDA for SMTC Corporation and its Subsidiaries
was not less than US$8,500,000 on a consolidated rolling four (4) fiscal quarter basis at the end of December 2008; and 

 Page 2 
  

	 	(ii)	the Fixed Charge Coverage Ratio covenant in Section 8.22 of the US Loan Agreement. More specifically, each US Borrower failed to ensure that SMTC Corporation and its
Subsidiaries maintain a Fixed Charge Coverage Ratio of not less than 1.00x on a consolidated rolling four (4) fiscal quarter basis at the end of December 2008, 

 (collectively, the “Existing Events of Default”). 
  

	 	(b)	In the sole and absolute discretion of each of the Agent, the Tranche B Agent and the US Lenders, and in reliance on the specific description of the Existing Events of Default
herein, each of the Agent, the Tranche B Agent and the US Lenders hereby waives the Existing Events of Default. 

  

	 	(c)	Notwithstanding the foregoing, the waiver by each of the Agent, the Tranche B Agent and the US Lenders as set forth herein: 

  

	 	(i)	shall not extend to any other Default or Event of Default; 

  

	 	(ii)	shall not be construed as a waiver of any other provision of the Financing Agreements or any further or future action on the part of any of the US Borrowers or the Obligors that
would require a consent or waiver by any of the Agent, the Tranche B Agent or the US Lenders; and 

  

	 	(iii)	is intended to be limited to the specific purpose and intent for which same has been provided and does not prejudice any rights or remedies that any of the Agent, the Tranche B
Agent and the US Lenders may now have or may have in the future under or in connection with the US Loan Agreement or the other Financing Agreements including, without limitation, the exercise of any rights and remedies by any of the Agent, the
Tranche B Agent and the US Lenders. 

  

	 	(d)	Each of the Agent, the Tranche B Agent and the US Lenders reserves its rights and remedies at any time and from time to time in connection with any Default or Event of Default now
existing or hereafter arising, other than the Existing Events of Default specifically waived herein. 

  

	3.	Amendment to US Loan Agreement. 

  

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

  

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

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	 	(i)	The definition of “Applicable Margin” in Section 1.5 of the US Loan Agreement is amended by deleting the existing table therein and replacing it with
the following table: 

  

									
	Level	  	Total Leverage Ratio	  	Applicable Margin for
Libor Rate Loans	 	 	Applicable Margin for
Reference Rate Loans	 
	 	 	 	 
	Level I	  	Greater than or equal to 2.00x	  	5.50	%	 	4.25	%
	 	 	 	 
	Level II	  	Less than 2.00x but greater than or equal to 1.50X	  	5.00	%	 	3.75	%
	 	 	 	 
	Level III	  	Less than 1.50x	  	4.50	%	 	3.25	%

  

	 	(ii)	The definition of “EBITDA” in Section 1.49 of the US Loan Agreement is amended by adding the following new paragraph after subparagraph (iv):

  

	 	    	“For purposes of EBITDA calculations with respect to fiscal year 2009 and the first fiscal quarter of 2010 of SMTC Corporation, negative EBITDA up to US$10,000,000 incurred by
SMTC Corporation and its Subsidiaries in such period generated by the Boston operations and other restructuring as set out in the 2009 projections of SMTC Corporation provided by the US Borrowers to EDC and Wachovia and approved by them shall be
excluded from such calculations.”. 

  

	 	(iii)	The definition of “Interest Rate” in Section 1.81 of the US Loan Agreement is amended as follows: 

  

	 	(A)	by inserting “plus two (2%) percent per annum” after “Prime Rate” in the first line; and 

  

	 	(B)	by deleting “three (3%)” in the third line and replacing it with “five (5%)”. 

  

	 	(iv)	The definition of “Total Debt” in Section 1.139 of the US Loan Agreement is deleted and replaced with: 

  

	 	    	“1.139 “Total Debt” 

  

	 	    	“Total Debt” shall mean, at any time, the outstanding amount of the Obligations and all other obligations, liabilities and indebtedness of SMTC Corporation and its
Subsidiaries, calculated on a consolidated basis and in accordance with GAAP, secured by valid and perfected first priority Liens on any property, assets or undertaking of such Persons minus the amount of cash held in the bank accounts of
such Persons.”. 

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	 	(v)	Schedule 2.3(b)(i) to the US Loan Agreement is deleted and replaced with Schedule 2.3(b)(i) attached to this letter. 

  

	 	(vi)	Section 8.6(a)(i) “Financial Statements and Other Information” of the US Loan Agreement is deleted and replaced with: 

  

	 	    	“(i) within thirty (30) days after the end of each fiscal month or within forty-five (45) days after the end of a fiscal month that is the month end of a fiscal
quarter of SMTC Corporation, monthly unaudited financial statements of Canadian Borrower and US Borrowers and unaudited consolidating financial statements of SMTC Corporation (including in each case balance sheets, statements of income and loss,
statements of cash flow, statements of shareholders’ equity, sales backlog reports and sales and profitability reports for the ten (10) largest customers of SMTC and its Subsidiaries), all in reasonable detail, fairly presenting the
financial position and the results of the operations of US Borrowers, Canadian Borrower and SMTC Corporation and their respective Subsidiaries as of the end of and through such fiscal month together with a certificate of the chief financial officer
of each US Borrower in form and content satisfactory to US Lenders and substantially in the form attached hereto as Schedule 8.6 (each, an “Officer’s Compliance Certificate”) setting out compliance with Sections 8.18
and 8.22, as applicable, each as at the end of the most recent fiscal month of SMTC Corporation, and the calculations used to determine such compliance and attaching the financial statements used to determine such compliance;”.

  

	 	(vii)	Section 8.6(a)(ii) “Financial Statements and Other Information” of the US Loan Agreement is deleted and replaced with: 

  

	 	    	“(ii) within forty-five (45) days after the end of each fiscal quarter of SMTC Corporation, quarterly unaudited financial statements of Canadian Borrower and US Borrowers
and unaudited consolidating financial statements of SMTC Corporation (including in each case balance sheets, statements of income and loss, statements of cash flow, statements of shareholders’ equity, sales backlog reports and sales and
profitability reports for the ten (10) largest customers of SMTC and its Subsidiaries), all in reasonable detail, fairly presenting the financial position and the results of the operations of US Borrowers, Canadian Borrower and SMTC Corporation
and their respective Subsidiaries as of the end of and through such fiscal quarter together with an Officer’s Compliance Certificate in form and content satisfactory to US Lenders setting out the Total Leverage Ratio for the calculation of the
Applicable Margin and compliance with Sections 8.23 and 8.24 each as at the end of the most recent fiscal quarter of SMTC Corporation, and the calculations used to determine such ratio and compliance and attaching the financial
statements used to determine such ratio and compliance;”. 

  

	 	(viii)	Schedules 8.6 and 8.18 hereto shall be schedules to the US Loan Agreement. 

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

  

	 	    	“8.18 EBITDA 

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

			
	 	 
	End of Month	  	TTM EBITDA
	 	 
	 January
2009
	  	US$5,900,000
	 	 
	 February
2009
	  	US$6,200,00
	 	 
	 March
2009
	  	US$3,400,000
	 	 
	 April
2009
	  	US$3,400,000
	 	 
	 May
2009
	  	US$4,200,000
	 	 
	 June
2009
	  	US$3,700,000
	 	 
	 July
2009
	  	US$4,200,000
	 	 
	 August
2009
	  	US$4,000,000
	 	 
	 September
2009
	  	US$3,700,000
	 	 
	 October
2009
	  	US$3,800,000
	 	 
	 November
2009
	  	US$4,300,000
	 	 
	 December
2009
	  	US$3,800,000
	 	 
	 January
2010
	  	US$4,200,000
	 	 
	 February
2010
	  	US$4,700,000
	 	 
	 March
2010
	  	US$5,500,000

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

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

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	 	    	“8.22 Fixed Charge Coverage Ratio 

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

 

	 	(xi)	Section 8.23 “Maximum Total Debt” of the US Loan Agreement is deleted and replaced with the following: 

  

	 	    	“8.23 Maximum Total Debt 

 Each US Borrower shall ensure that the outstanding Total Debt of SMTC Corporation and its Subsidiaries under this Agreement, the Canadian Loan Agreement and Capital Leases shall not exceed the applicable number set forth in the table below
times trailing twelve (12) month EBITDA of SMTC Corporation and its Subsidiaries calculated at the end of each fiscal quarter in the table below on a consolidated basis in accordance with GAAP: 
  

			
	 	 
	End of Fiscal Quarter	  	Maximum Total Debt/EBITDA
	 	 
	 March 2009
	  	 6.3x

	 	 
	 June 2009
	  	 4.7x

	 	 
	 September 2009
	  	 3.9x

	 	 
	 December 2009
	  	 3.1x

	 	 
	 Each Fiscal Quarter thereafter
	  	 3.0x

  

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

  

	 	    	“8.24 Maximum Unfunded Capital Expenditures 

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

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	 	(xiii)	Section 8 “Affirmative and Negative Covenants” of the US Loan Agreement is amended by adding the following new Section 8.26 “Total
Excess Availability” thereto: 

  

	 	    	“8.26 Total Excess Availability 

 US Borrowers shall ensure that Total Excess Availability at all times is not less than US$1,000,000.”. 
  

	 	(xiv)	Section 9.1(a)(ii) “Events of Default” of the US Loan Agreement is amended by: 

  

	 	(A)	deleting “and” in the fourth line and replacing it with “,”; and 

  

	 	(B)	inserting “and 8.26” after “8.25” in the fourth line. 

  

	 	(c)	The effective date of the amendment to the US Loan Agreement provided in this letter is April 2, 2009. 

  

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

  

	5.	Financing Agreement. This letter is a Financing Agreement. 

  

	6.	Amendment Fees. 

  

	 	(a)	The US Borrowers shall pay to the Agent an amendment fee of US$100,000 which amendment fee shall be fully earned as of and payable on the date hereof. 

  

	 	(b)	The US Borrowers shall pay to the Tranche B Agent an amendment fee of US$32,500 which amendment fee shall be fully earned as of and payable on the date hereof.

  

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

  

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

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

  

	 	(b)	the fees set out in Section 6 above have been paid by the US Borrowers; 

  

	 	(c)	no Default or Event of Default has occurred and is continuing other than the Existing Events of Default; and 

  

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

  

	9.	Continuance of US Loan Agreement and Security. 

  

	 	(a)	The US Loan Agreement, as amended by this letter, shall be and continue in full force and effect and is hereby confirmed and the rights and obligations of all parties thereunder
shall not be affected or prejudiced in any manner except as specifically provided for herein. 

  

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

  

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

  

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

  

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

  

	 	(i)	after giving effect to this letter, the US Borrowers and the Obligors are in compliance with all covenants in the Financing Agreements; 

  

	 	(ii)	after giving effect to this letter, all the representations and warranties set out in the Financing Agreements are true and accurate; 

  

	 	(iii)	after giving effect to this letter, no Default or Event of Default has occurred or is continuing; 

  

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

 Page 9 
  

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

  

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

  

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

  

	10.	Counterparts. This letter may be executed in any number of separate original, facsimile or pdf counterparts, each of which shall be deemed an original and all of said
counterparts taken together shall be deemed to constitute one and the same instrument. 

  

	11.	Governing Law. The validity, interpretation and enforcement of this letter and any dispute arising out of the relationship between the parties hereto, whether in contract,
tort, equity or otherwise, shall be governed by the laws of the State of Illinois. 

  

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

 [REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK] 

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

  

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

  

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

  

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

  

	16.	Acceptance. If the foregoing correctly sets out our agreement, please indicate your acceptance of this letter by signing below and returning an executed copy to us by no
later than 5:00 p.m. on April 2, 2009 (the “Effective Date”). If not so signed and returned to us on the Effective Date, this letter shall be null and void. 

 Yours truly, 
  

			
	REVOLVING LENDER AND AGENT :
	
	WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL)
		
	By:	 	/s/ Carmela Massari
	Name	 	Carmela Massari
	Title:	 	Vice President
	
	
		
	By:	 	 
	Name:	 	
	Title:	 	

 Page 11 
  

 Agreed this 2nd day of April 2009. 
  

			
	TRANCHE B LENDER AND TRANCHE B AGENT:
	
	EXPORT DEVELOPMENT CANADA
		
	By:	 	/s/ Kevin Skilliter
	Name	 	Kevin Skilliter
	Title:	 	Senior Asset Manager
	
	
		
	By:	 	/s/ Peter Johnston
	Name:	 	Peter Johnson
	Title:	 	Loan Portfolio Manager

 Page 12 
  

 Agreed this 2nd day of April 2009. 
  

									
			
	US BORROWER:	 		 	US BORROWER:
			
	SMTC MANUFACTURING CORPORATION OF CALIFORNIA	 		 	SMTC MANUFACTURING CORPORATION OF MASSACHUSETTS
					
	By:	 	 /s/ John Caldwell
	 		 	 By:
	 	 /s/ John Caldwell

	Name	 	John Caldwell	 		 	Name	 	John Caldwell
	Title:	 	President & CEO	 		 	Title:	 	President & CEO
					
	By:	 	 /s/ Jane Todd
	 		 	By:	 	 /s/ Jane Todd

	Name:	 	Jane Todd	 		 	Name:	 	Jane Todd
	Title:	 	CFO & Secretary	 		 	Title:	 	CFO & Secretary
				
	US BORROWER:	 		 		 	
				
	SMTC MEX HOLDINGS, INC.	 		 		 	
					
	By:	 	 /s/ John Caldwell
	 		 		 	
	Name	 	John Caldwell	 		 		 	
	Title:	 	President & CEO	 		 		 	
					
	By:	 	 /s/ Jane Todd
	 		 		 	
	Name:	 	Jane Todd	 		 		 	
	Title:	 	CFO & Secretary	 		 		 	

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 OBLIGORS: 
 Each of the undersigned Obligors hereby: 
  

	 	(a)	acknowledges, confirms and agrees that such Obligor’s Financing Agreements (as each of the same may have been amended, modified, supplemented, extended, renewed, restated or
replaced) remain in full force and effect as at the date hereof in respect of the Obligations under the US Loan Agreement; 

  

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

 

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

  

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

Dated as of the 2nd day of April, 2009. 
  

									
			
	SMTC CORPORATION	 		 	SMTC HOLDINGS, LLC
					
	By:	 	 /s/ John Caldwell
	 		 	 By:
	 	 /s/ John Caldwell

	Name	 	John Caldwell	 		 	Name	 	John Caldwell
	Title:	 	President & CEO	 		 	Title:	 	President & CEO
					
	By:	 	 /s/ Jane Todd
	 		 	By:	 	 /s/ Jane Todd

	Name:	 	Jane Todd	 		 	Name:	 	Jane Todd
	Title:	 	CFO & Secretary	 		 	Title:	 	CFO & Secretary
			
	HTM HOLDINGS, INC.	 		 	RADIO COMPONENTES DE MEXICO, S.A. DE C.V.
					
	By:	 	 /s/ John Caldwell
	 		 	By:	 	 /s/ John Caldwell

	Name	 	John Caldwell	 		 	Name	 	John Caldwell
	Title:	 	President & CEO	 		 	Title:	 	President & CEO
					
	By:	 	 /s/ Jane Todd
	 		 	By:	 	 /s/ Jane Todd

	Name:	 	Jane Todd	 		 	Name:	 	Jane Todd
	Title:	 	CFO & Secretary	 		 	Title:	 	CFO & Secretary

 Page 14 
  

									
				
	SMTC DE CHIHUAHUA, S.A. DE C.V.	 		 		 	
					
	By:	 	 /s/ John Caldwell
	 		 		 	
	Name	 	John Caldwell	 		 		 	
	Title:	 	President & CEO	 		 		 	
					
	By:	 	 /s/ Jane Todd
	 		 		 	
	Name:	 	Jane Todd	 		 		 	
	Title:	 	CFO & Secretary	 		 		 	

  

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 SCHEDULE 2.3(b)(i) 
 TRANCHE B LOAN AMORTIZATION SCHEDULE 
  

			
	 	 
	Date	  	Principal Repayment Amount
	 	 
	 April 1, 2009
	  	 US$325,000

	 	 
	 July 1, 2009
	  	 US$325,000

	 	 
	 October 1, 2009
	  	 US$487,500

	 	 
	 January 1, 2010
	  	 US$1,300,000

	 	 
	 April 1, 2010
	  	 US$1,300,000

	 	 
	 July 1, 2010
	  	 US$1,462,500

	 	 
	 October 1, 2010
	  	 US$975,000

	 	 
	 January 1, 2011
	  	 US$975,000

	 	 
	 April 1, 2011
	  	 US$975,000

	 	 
	 July 1, 2011
	  	 US$975,000

	 	 
	 October 1, 2011
	  	 US$650,000

	 	 
	 January 1, 2012
	  	 US$650,000

	 	 
	 April 1, 2012
	  	 US$650,000

	 	 
	 August 12, 2012
	  	 US$650,000

 SCHEDULE 8.6 
 FORM OF OFFICER’S COMPLIANCE CERTIFICATE 
 FORM OF COMPLIANCE CERTIFICATE 
 This Compliance Certificate (this “Certificate”) is delivered to you pursuant to the Second Amended and Restated Canadian Loan Agreement
dated as of August 7, 2008, by and among SMTC MANUFACTURING CORPORATION OF CANADA, as Canadian Borrower, and WACHOVIA CAPITAL FINANCE CORPORATION (CANADA), as Revolving Lender and Agent, and the Second Amended and Restated US Loan Agreement
dated as of August 7, 2008 by and among SMTC MANUFACTURING CORPORATION OF CALIFORNIA, SMTC MANUFACTURING CORPORATION OF MASSACHUSETTS, SMTC MEX HOLDINGS, INC., as US Borrowers, WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL), as Revolving
Lender and Agent, and EXPORT DEVELOPMENT CANADA, as Tranche B Lender and Tranche B Agent. 
  

	 	1.	I am the duly elected, qualified and acting Senior Vice President Finance and Chief Financial Officer of the Borrowers and SMTC Corporation. 

  

	 	2.	I have reviewed and am familiar with the contents of this Certificate. 

  

	 	3.	I have reviewed the terms of the Canadian Loan Agreement and the US Loan Agreement referred to above. 

  

	 	4.	Attached hereto as Attachment is a certificate signed by me demonstrating compliance with the EBITDA covenants set forth in Section 8.19 of the Canadian Loan
Agreement and Section 8.18 of the US Loan Agreement together with the financial statements used to determine such compliance. 

  

	 	5.	Attached hereto as Attachment 2 is a certificate signed by me demonstrating compliance with the Fixed Charge Coverage Ratio covenants set forth in Section 8.23
of the Canadian Loan Agreement and Section 8.22, of the US Loan Agreement together with the financial statements used to determine such compliance. 

  

	 	6.	Attached hereto as Attachment is a certificate signed by me demonstrating compliance with the Maximum Total Debt covenants set forth in Section 8.24 of the
Canadian Loan Agreement and Section 8.23 of the US Loan Agreement together with the financial statements used to determine such compliance. 

  

	 	7.	Attached hereto as Attachment 4 is a certificate signed by me demonstrating compliance with the Maximum Unfunded Capital Expenditures covenants set forth in
Section 8.25 of the Canadian Loan Agreement and Section 8.24 of the US Loan Agreement together with the financial statements used to determine such compliance. 

 IN WITNESS WHEREOF, I execute this Certificate this          day of
                    , 20        . 
 SMTC CORPORATION 
 By: 
         Name: Jane Todd 
         Title: SVP Finance and CFO 
  

 2 

			
	 Company Name
	  	31/03/2009 15:41
	 EBITDA Compliance Certificate
	  	
	 For Month and YTD period ending:
	  	

  

					
	 	  	Monthly Actual	  	YTD Actual
			
	 Net income
	  	—  	  	—  
			
	 Plus: Interest
	  	—  	  	—  
			
	 Plus: Income taxes
	  	—  	  	—  
			
	 Plus: Depreciation
	  	—  	  	—  
			
	 Plus: Amortization
	  	—  	  	—  
			
	 Less: Unusual gains             Detail below
	  	—  	  	—  
			
	 Plus: Unusual losses              Detail below
	  	—  	  	—  
			
	 Plus: Stock option expenses
	  	—  	  	—  
			
	 EBITDA
	  	—  	  	—  

 Monthly rolling EBITDA 
  

						
			
	 EBITDA for:
	 	 months ended
	  	$	—  
			
	 EBITDA for the month of:
	 		  	 	        —  
		 		  	 	 
			
	 Rolling month /QTR EBITDA at
	 		  		
			
	 Standard
	 		  		
			
	 Compliance
	 		  	 	no

  

			
		
	 Name
	 	 
		
	 Signature
	 	 
		
	 Title
	 	 
		
	 Date
	 	 

  

 3 

			
	 Company Name
	  	XXXXXXXXXX
	 FCCR Compliance Certificate
	  	
	 For the period ending             X month ending date
	  	

  

				
	 EBITDA for period ending:
                                    Date
	  	$	        —  
	 Fixed Charges
	  	 	—  
	 Pension Payments
	  	 	—  
	 Capital Leases Payments
	  	 	—  
	 Interest Payments
	  	 	—  
	 Unfunded Capital Expenditures
	  	 	—  
	 Maintenance Capex
	  	 	—  
	 Cash Taxes
	  	 	—  
	 Other
	  	 	—  
	 Other
	  	 	—  
	 Other
	  	 	—  
		
	 Total Fixed Charges
	  	$	        —  
		
	 Fixed Charge Covenant Ratio
	  	 	#DIVIO!
		
	 Standard
	  	 	0
		
	 Compliance
	  	 	#DIV/O!

  

			
		
	 Name
	 	 
		
	 Signature
	 	 
		
	 Title
	 	 
		
	 Date
	 	 

  

 4 

			
	 Company Name
	  	
	Debt/EBITDA minus Unfunded Capex Ratio	  	
	 Date
	  	

  

									
	  	  	31-Mar	  	30-Jun	  	30-Sep	  	31-Dec
	 Revolver
	  		  		  		  	
	 Term (Current)
	  		  		  		  	
	 Leases (Current)
	  		  		  		  	
	 Term( LT)
	  		  		  		  	
	 Leases (LT)
	  		  		  		  	
	 Letters of credit
	  	—  	  		  		  	
					
	 Total debt
	  	—  	  	—  	  	—  	  	—  
					
	 EBITDA (4 QTR Rolling)
	  		  		  		  	
					
	 Debt/EBITDA
	  	#D1V/O!	  	#DIV/O!	  	#DIV/O!	  	#D1V/O!
					
	 Standard
	  	6.9	  	5.2	  	4.4	  	3.6
					
	 Compliance
	  	#DIV/O!	  	#DIV/O!	  	#DIV/O!	  	#DIV/O!

  

			
		
	 Name
	 	 
		
	 Signature
	 	 
		
	 Title
	 	 
		
	 Date
	 	 

  

 5 

			
	 Company Name
	  	3/31/2009 16:34
	Date	  	
	 Unfunded CAPEX Covenant
	  	

  

													
	  	  	31-Mar	  	30-Jun	  	30-Sep	  	31-Dec
	 YTD CAPEX
	  			  			  			  		
	 YTD CAPEX financing
	  			  			  			  		
					
	 YTD Unfunded CAPEX
	  	$	—  	  	$	—  	  	$	—  	  	$	—  
					
	 Maximum
	  	$	1,000,000	  	$	1,000,000	  	$	1,000,000	  	$	1,000,000
					
	 Compliance
	  	 	YES	  	 	YES	  	 	YES	  	 	YES

  

			
		
	 Name
	 	 
		
	 Signature
	 	 
		
	 Title
	 	 
		
	 Date
	 	 

  

 5 

 Page 21 
  

 SCHEDULE 8.18 
 EBITDA CALCULATIONS 
  

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

 Note: 
 If financial covenant is not reset by April 10, 2010, April test will be FCCR 1.25:1 
 Column A represents actual EBITDA for 2008 retrieved from client's projection model and total matched to 2008 10K 
 Column B represents EBITDA per 2009 projections 
 Column C represents 85% of 2009 projected EBITDA 
 Column D represents rolling EBITDA (A and C) 
 Column E is the same as D except that non-qtr month ends are lower than in D—QTR end periods are equal 
 Column F covenant ( rounded)Letter of waiver and amendment, Wachovia Capital Finance Corporation (Canada)

 Exhibit 10.55 
 [LETTERHEAD OF WACHOVIA CAPITAL FINANCE CORPORATION (CANADA)] 
 April 2, 2009

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

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

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

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

  

	2.	Waiver of Existing Events of Default. 

  

	 	(a)	Two (2) Events of Default have occurred and are existing under Section 9.1(a)(ii) of the Canadian Loan Agreement as a result of the Canadian Borrower breaching:

  

	 	(i)	the EBITDA covenant in Section 8.19 of the Canadian Loan Agreement. More specifically, the Canadian Borrower failed to ensure that EBITDA for SMTC Corporation and its
Subsidiaries was not less than US$8,500,000 on a consolidated rolling four (4) fiscal quarter basis at the end of December 2008; and 

  

	 	(ii)	the Fixed Charge Coverage Ratio covenant in Section 8.23 of the Canadian Loan Agreement. More specifically, the Canadian Borrower failed to ensure that SMTC Corporation
and its Subsidiaries maintain a Fixed Charge Coverage Ratio of not less than 1.00x on a consolidated rolling four (4) fiscal quarter basis at the end of December 2008, 

  

	 	    	(collectively, the “Existing Events of Default”). 

  

	 	(b)	 In the sole and absolute discretion of each of the Agent and the Revolving Lender, and in reliance on the specific description of the Existing Events of Default
herein, 

	 	 
each of the Agent and the Revolving Lender hereby waives the Existing Events of Default. 

  

	 	(c)	Notwithstanding the foregoing, the waiver by each of the Agent and the Revolving Lender as set forth herein: 

  

	 	(i)	shall not extend to any other Default or Event of Default; 

  

	 	(ii)	shall not be construed as a waiver of any other provision of the Financing Agreements or any further or future action on the part of any of the Canadian Borrower or the Obligors
that would require a consent or waiver by any of the Agent or the Revolving Lender; and 

  

	 	(iii)	is intended to be limited to the specific purpose and intent for which same has been provided and does not prejudice any rights or remedies that any of the Agent or the Revolving
Lender may now have or may have in the future under or in connection with the Canadian Loan Agreement or the other Financing Agreements including, without limitation, the exercise of any rights and remedies by any of the Agent and the Revolving
Lender. 

  

	 	(d)	Each of the Agent and the Revolving Lender reserves its rights and remedies at any time and from time to time in connection with any Default or Event of Default now existing or
hereafter arising, other than the Existing Events of Default specifically waived herein. 

  

	3.	Amendment to Canadian Loan Agreement. 

  

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

  

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

  

	 	(i)	The definition of “EBITDA” in Section 1.33 of the Canadian Loan Agreement is amended by adding the following new paragraph after subparagraph
(iv): 

  

	 	    	“For purposes of EBITDA calculations with respect to fiscal year 2009 and the first fiscal quarter of 2010 of SMTC Corporation, negative EBITDA up to US$10,000,000 incurred by
SMTC Corporation and its Subsidiaries in such period generated by the Boston operations and other restructuring as set out in the 2009 projections of SMTC Corporation provided by the Canadian Borrower to the Agent and approved by the Agent shall be
excluded from such calculations.”. 

	 	(ii)	The definition of “Interest Rate” in Section 1.62 of the Canadian Loan Agreement is amended as follows: 

  

	 	(A)	by inserting “plus two (2%) percent per annum” after “Canadian Prime Rate” in the first line; 

  

	 	(B)	by inserting “plus two (2%) percent per annum” after “US Prime Rate” in the third line; 

  

	 	(C)	by deleting “one (1%)” in the fifth line and replacing it with “three (3%)”; and 

  

	 	(D)	by deleting “three (3%)” in the sixth line and replacing it with “five (5%)”. 

  

	 	(iii)	The definition of “Total Debt” in Section 1.120 of the Canadian Loan Agreement is deleted and replaced with 

  

	 	    	“1.120                 “Total Debt” 

  

	 	    	“Total Debt” shall mean, at any time, the outstanding amount of the Obligations and all other obligations, liabilities and indebtedness of SMTC Corporation and its
Subsidiaries, calculated on a consolidated basis and in accordance with GAAP, secured by valid and perfected first priority Liens on any property, assets or undertaking of such Persons minus the amount of cash held in the bank accounts of
such Persons.”. 

  

	 	(iv)	Section 8.6(a)(i) “Financial Statements and Other Information” of the Canadian Loan Agreement is deleted and replaced with: 

  

	 	    	“(i) within thirty (30) days after the end of each fiscal month or within forty-five (45) days after the end of a fiscal month that is the month end of a fiscal
quarter of SMTC Corporation, monthly unaudited financial statements of Canadian Borrower and US Borrowers and unaudited consolidating financial statements of SMTC Corporation (including in each case balance sheets, statements of income and loss,
statements of cash flow, statements of shareholders’ equity, sales backlog reports and sales and profitability reports for the ten (10) largest customers of SMTC and its Subsidiaries), all in reasonable detail, fairly presenting the
financial position and the results of the operations of US Borrowers, Canadian Borrower and SMTC Corporation and their respective Subsidiaries as of the end of and through such fiscal month together with a certificate of the chief financial officer
of Canadian Borrower in form and content satisfactory to Canadian Lenders and substantially in the form attached hereto as Schedule 8.6 (each, an “Officer’s Compliance Certificate”) setting out compliance with
Sections 8.19 and 8.23, as applicable, each as at the end of the most recent fiscal month of SMTC Corporation, and the calculations used to determine such compliance and attaching the financial statements used to determine such
compliance;”. 

	 	(v)	Section 8.6(a)(ii) “Financial Statements and Other Information” of the Canadian Loan Agreement is deleted and replaced with: 

 

	 	    	“(ii) within forty-five (45) days after the end of each fiscal quarter of SMTC Corporation, quarterly unaudited financial statements of Canadian Borrower and US Borrowers
and unaudited consolidating financial statements of SMTC Corporation (including in each case balance sheets, statements of income and loss, statements of cash flow, statements of shareholders’ equity, sales backlog reports and sales and
profitability reports for the ten (10) largest customers of SMTC and its Subsidiaries), all in reasonable detail, fairly presenting the financial position and the results of the operations of US Borrowers, Canadian Borrower and SMTC Corporation
and their respective Subsidiaries as of the end of and through such fiscal quarter together with an Officer’s Compliance Certificate in form and content satisfactory to Canadian Lenders setting out the Total Leverage Ratio for the calculation
of the Applicable Margin and compliance with Sections 8.24 and 8.25 each as at the end of the most recent fiscal quarter of SMTC Corporation, and the calculations used to determine such ratio and compliance and attaching the financial
statements used to determine such ratio and compliance;”. 

  

	 	(vi)	Schedules 8.6 and 8.19 hereto shall be schedules to the Canadian Loan Agreement. 

  

	 	(vii)	Section 8.19 “EBITDA” of the Canadian Loan Agreement is deleted and replaced with: 

  

	 	    	“8.19                EBITDA 

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

			
	 End of Month
	  	 TTM EBITDA

	January 2009	  	US$5,900,000
		
	February 2009	  	US$6,200,00
		
	March 2009	  	US$3,400,000
		
	April 2009	  	US$3,400,000
		
	May 2009	  	US$4,200,000
		
	June 2009	  	US$3,700,000
		
	July 2009	  	US$4,200,000
		
	August 2009	  	US$4,000,000
		
	September 2009	  	US$3,700,000
		
	October 2009	  	US$3,800,000
		
	November 2009	  	US$4,300,000
		
	December 2009	  	US$3,800,000
		
	January 2010	  	US$4,200,000
		
	February 2010	  	US$4,700,000
		
	March 2010	  	US$5,500,000

 It is the intention of the Agent and the Canadian Borrower to reset in writing the
EBITDA covenant in Section 8.19 by April 10, 2010 and if the Agent and the Canadian Borrower cannot agree on such reset by April 10, 2010 then the Canadian Borrower shall comply with the Fixed Charge Coverage Ratio in
Section 8.23. 
 The Agent and the Canadian Borrower acknowledge and agree that Schedule 8.19 sets out how
the Agent calculated the EBITDA covenant in Section 8.19 and that total 2008 EBITDA of US$5,897,000 in column A in Schedule 8.19 represents EBITDA for 2008 retrieved from SMTC Corporation’s 2008 financial statements.”.

  

	 	(viii)	Section 8.23 “Fixed Charge Coverage Ratio” of the Canadian Loan Agreement is deleted and replaced with: 

  

	 	    	“8.23                Fixed Charge Coverage Ratio 

 In the event that the Agent and the Canadian Borrower cannot agree to reset in writing the EBITDA covenant in Section 8.19
by April 10, 2010 then the Canadian Borrower shall ensure that SMTC Corporation and its Subsidiaries maintain a Fixed Charge Coverage Ratio of not less than 1.25:1 calculated at the end of each fiscal month starting with April 2010 on a
consolidated trailing twelve (12) month basis and in accordance with GAAP.”. 
  

	 	(ix)	Section 8.24 “Maximum Total Debt” of the Canadian Loan Agreement is deleted and replaced with the following: 

  

	 	    	“8.24                Maximum Total Debt 

 The Canadian Borrower shall ensure that the outstanding Total Debt of SMTC Corporation and its Subsidiaries under this Agreement, the US
Loan Agreement and Capital Leases shall not exceed the applicable number set forth in the table below times trailing twelve (12) month EBITDA of SMTC Corporation and its Subsidiaries calculated at the end of each fiscal quarter in the table
below on a consolidated basis in accordance with GAAP: 

			
	 End of Fiscal Quarter
	  	 Maximum Total Debt/EBITDA

		
	March 2009	  	6.3x
		
	June 2009	  	4.7x
		
	September 2009	  	3.9x
		
	December 2009	  	3.1x
		
	Each Fiscal Quarter thereafter	  	3.0x

  

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

  

	 	    	“8.25                Maximum Unfunded Capital Expenditures 

 The Canadian Borrower shall ensure that SMTC Corporation and its Subsidiaries do not, directly or indirectly, make or commit to make,
whether through purchase, capital leases or otherwise, unfunded Capital Expenditures in an aggregate amount in excess of US$1,000,000 for fiscal year 2009 of SMTC Corporation. 
 It is the intention of the Agent and the Canadian Borrower to reset in writing the Maximum Unfunded Capital Expenditures covenant in
Section 8.25 by April 10, 2010 and if the Agent and the Canadian Borrower cannot agree on such reset by April 10, 2010 then the maximum unfunded capital expenditure amount above shall be US$500,000 for each fiscal year of SMTC
Corporation on a go forward basis.”. 
  

	 	(xi)	Section 8 “Affirmative and Negative Covenants” of the Canadian Loan Agreement is amended by adding the following new Section 8.27
“Total Excess Availability” thereto: 

  

	 	    	“8.27                Total Excess Availability 

 The Canadian Borrower shall ensure that Total Excess Availability at all times is not less than US$1,000,000.”. 
  

	 	(xii)	Section 9.1(a)(ii) “Events of Default” of the Canadian Loan Agreement is amended by: 

  

	 	(A)	deleting “and” in the fourth line and replacing it with “,”; and 

  

	 	(B)	inserting “and 8.27” after “8.26” in the fourth line. 

	 	(c)	The effective date of the amendment to the Canadian Loan Agreement provided in this letter is April 2, 2009. 

  

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

  

	5.	Financing Agreement. This letter is a Financing Agreement. 

  

	6.	Intentionally Deleted. 

  

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

  

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

  

	 	(a)	the Agent and the Revolving Lender have received this letter duly authorized, executed and delivered by each of the Canadian Borrower and the Obligors; 

  

	 	(b)	no Default or Event of Default has occurred and is continuing other than the Existing Events of Default; and 

  

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

  

	9.	Continuance of Canadian Loan Agreement and Security. 

  

	 	(a)	The Canadian Loan Agreement, as amended by this letter, shall be and continue in full force and effect and is hereby confirmed and the rights and obligations of all parties
thereunder shall not be affected or prejudiced in any manner except as specifically provided for herein. 

  

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

  

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

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

  

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

  

	 	(i)	after giving effect to this letter, the Canadian Borrower and the Obligors are in compliance with all covenants in the Financing Agreements; 

  

	 	(ii)	after giving effect to this letter, all the representations and warranties set out in the Financing Agreements are true and accurate; 

  

	 	(iii)	after giving effect to this letter, no Default or Event of Default has occurred or is continuing; 

  

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

  

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

  

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

  

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

  

	10.	Counterparts. This letter may be executed in any number of separate original, facsimile or pdf counterparts, each of which shall be deemed an original and all of said
counterparts taken together shall be deemed to constitute one and the same instrument. 

  

	11.	Governing Law. The validity, interpretation and enforcement of this letter and any dispute arising out of the relationship between the parties hereto, whether in contract,
tort, equity or otherwise, shall be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein. 

  

	12.	 Further Assurances. At the request of any of the Agent or the Revolving Lender at any time and from time to time, each of the Canadian Borrower and the
Obligors shall, at their expense, duly execute and deliver, or cause to be duly executed and delivered, such further 

	 	 
agreements, documents and instruments, and do or cause to be done such further acts as may be requested by any of the Agent or the Revolving Lender to
effectuate the provisions or purposes of this letter. 

  

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

  

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

  

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

 

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

  

	17.	Acceptance. If the foregoing correctly sets out our agreement, please indicate your acceptance of this letter by signing below and returning an executed copy to us by no
later than 5:00 p.m. on April 2, 2009 (the “Effective Date”). If not so signed and returned to us on the Effective Date, this letter shall be null and void. 

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

			
	
		
	By:	 	/s/ Carmela Massari
		 	 Name: Carmela Massari
 Title: First Vice President

  

			
	
		
	By:	 	 
		 	 Name:
 Title:

 Agreed this 2nd day of April 2009. 
 CANADIAN BORROWER: 
 SMTC MANUFACTURING 
 CORPORATION OF CANADA/s/OCIETE 
 DE FABRICATION SMTC DU CANADA 

  

			
	
		
	By:	 	/s/ John Caldwell
		 	 Name: John Caldwell
 Title: President &
CEO

  

			
	
		
	By:	 	/s/ Jane Todd
		 	 Name: Jane Todd
 Title: CFO &
Secretary

 OBLIGORS: 
 Each of the undersigned Obligors hereby: 
  

	 	(a)	acknowledges, confirms and agrees that such Obligor’s Financing Agreements (as each of the same may have been amended, modified, supplemented, extended, renewed, restated or
replaced) remain in full force and effect as at the date hereof in respect of the Obligations under the Canadian Loan Agreement; 

  

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

  

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

  

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

Dated as of the 2nd day of April, 2009. 
  

									
	SMTC CORPORATION	 		 	SMTC HOLDINGS, LLC
					
	By:	 	/s/ John Caldwell	 		 	 By:
	 	 /s/ John Caldwell

		 	 Name: John Caldwell
 Title: President & CEO
	 		 		 	 Name: John Caldwell
 Title: President & CEO

  

									
					
	By:	 	 /s/ Jane Todd
	 		 	 By:
	 	 /s/ Jane Todd

		 	 Name: Jane Todd
 Title: CFO & Secretary
	 		 		 	 Name: Jane Todd
 Title: CFO & Secretary

  

									
	HTM HOLDINGS, INC.	 		 	RADIO COMPONENTES DE MEXICO, S.A. DE C.V.
					
	By:	 	/s/ John Caldwell	 		 	 By:
	 	 /s/ John Caldwell

		 	 Name: John Caldwell
 Title: President & CEO
	 		 		 	 Name: John Caldwell
 Title: President & CEO

  

									
					
	By:	 	 /s/ Jane Todd
	 		 	 By:
	 	 /s/ Jane Todd

		 	 Name: Jane Todd
 Title: CFO & Secretary
	 		 		 	 Name: Jane Todd
 Title: CFO & Secretary

									
	SMTC DE CHIHUAHUA, S.A. DE C.V.	 		 	SMTC NOVA SCOTIA COMPANY
					
	By:	 	/s/ John Caldwell	 		 	 By:
	 	 /s/ John Caldwell

		 	 Name: John Caldwell
 Title: President & CEO
	 		 		 	 Name: John Caldwell
 Title: President & CEO

  

									
					
	By:	 	 /s/ Jane Todd
	 		 	 By:
	 	 /s/ Jane Todd

		 	 Name: Jane Todd
 Title: CFO & Secretary
	 		 		 	 Name: Jane Todd
 Title: CFO & Secretary

  

									
	SMTC MANUFACTURING CORPORATION OF CALIFORNIA	 		 	SMTC MEX HOLDINGS, INC.
					
	By:	 	/s/ John Caldwell	 		 	 By:
	 	 /s/ John Caldwell

		 	 Name: John Caldwell
 Title: President & CEO
	 		 		 	 Name: John Caldwell
 Title: President & CEO

  

									
					
	By:	 	 /s/ Jane Todd
	 		 	 By:
	 	 /s/ Jane Todd

		 	 Name: Jane Todd
 Title: CFO & Secretary
	 		 		 	 Name: Jane Todd
 Title: CFO & Secretary

  

			
	SMTC MANUFACTURING CORPORATION OF MASSACHUSETTS
		
	By:	 	/s/ John Caldwell
		 	 Name: John Caldwell
 Title: President & CEO

  

			
	
		
	By:	 	 /s/ Jane Todd

		 	 Name: Jane Todd
 Title: CFO & Secretary

 SCHEDULE 8.6 
 FORM OF OFFICER’S COMPLIANCE CERTIFICATE 
 FORM OF COMPLIANCE CERTIFICATE 
 This Compliance Certificate (this “Certificate”) is delivered to you pursuant to the Second Amended and Restated Canadian Loan Agreement
dated as of August 7, 2008, by and among SMTC MANUFACTURING CORPORATION OF CANADA, as Canadian Borrower, and WACHOVIA CAPITAL FINANCE CORPORATION (CANADA), as Revolving Lender and Agent, and the Second Amended and Restated US Loan Agreement
dated as of August 7, 2008 by and among SMTC MANUFACTURING CORPORATION OF CALIFORNIA, SMTC MANUFACTURING CORPORATION OF MASSACHUSETTS, SMTC MEX HOLDINGS, INC., as US Borrowers, WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL), as Revolving
Lender and Agent, and EXPORT DEVELOPMENT CANADA, as Tranche B Lender and Tranche B Agent. 
  

	 	1.	I am the duly elected, qualified and acting Senior Vice President Finance and Chief Financial Officer of the Borrowers and SMTC Corporation. 

  

	 	2.	I have reviewed and am familiar with the contents of this Certificate. 

  

	 	3.	I have reviewed the terms of the Canadian Loan Agreement and the US Loan Agreement referred to above. 

  

	 	4.	Attached hereto as Attachment is a certificate signed by me demonstrating compliance with the EBITDA covenants set forth in Section 8.19 of the Canadian Loan
Agreement and Section 8.18 of the US Loan Agreement together with the financial statements used to determine such compliance. 

  

	 	5.	Attached hereto as Attachment 2 is a certificate signed by me demonstrating compliance with the Fixed Charge Coverage Ratio covenants set forth in Section 8.23
of the Canadian Loan Agreement and Section 8.22, of the US Loan Agreement together with the financial statements used to determine such compliance. 

  

	 	6.	Attached hereto as Attachment is a certificate signed by me demonstrating compliance with the Maximum Total Debt covenants set forth in Section 8.24 of the
Canadian Loan Agreement and Section 8.23 of the US Loan Agreement together with the financial statements used to determine such compliance. 

  

	 	7.	Attached hereto as Attachment 4 is a certificate signed by me demonstrating compliance with the Maximum Unfunded Capital Expenditures covenants set forth in
Section 8.25 of the Canadian Loan Agreement and Section 8.24 of the US Loan Agreement together with the financial statements used to determine such compliance. 

 IN WITNESS WHEREOF, I execute this Certificate this          day of
                    , 20        . 
 SMTC CORPORATION 
 By: 
         Name: Jane Todd 
         Title: SVP Finance and CFO 
  

 2 

			
	 Company Name
	  	31/03/2009 15:41
	 EBITDA Compliance Certificate
	  	
	 For Month and YTD period ending:
	  	

  

					
	 	  	Monthly Actual	  	YTD Actual
			
	 Net income
	  	—  	  	—  
			
	 Plus: Interest
	  	—  	  	—  
			
	 Plus: Income taxes
	  	—  	  	—  
			
	 Plus: Depreciation
	  	—  	  	—  
			
	 Plus: Amortization
	  	—  	  	—  
			
	 Less: Unusual gains             Detail below
	  	—  	  	—  
			
	 Plus: Unusual losses              Detail below
	  	—  	  	—  
			
	 Plus: Stock option expenses
	  	—  	  	—  
			
	 EBITDA
	  	—  	  	—  

 Monthly rolling EBITDA 
  

						
			
	 EBITDA for:
	 	 months ended
	  	$	—  
			
	 EBITDA for the month of:
	 		  	 	        —  
		 		  	 	 
			
	 Rolling month /QTR EBITDA at
	 		  		
			
	 Standard
	 		  		
			
	 Compliance
	 		  	 	no

  

			
		
	 Name
	 	 
		
	 Signature
	 	 
		
	 Title
	 	 
		
	 Date
	 	 

  

 3 

			
	 Company Name
	  	XXXXXXXXXX
	 FCCR Compliance Certificate
	  	
	 For the period ending             X month ending date
	  	

  

				
	 EBITDA for period ending:
                                    Date
	  	$	        —  
	 Fixed Charges
	  	 	—  
	 Pension Payments
	  	 	—  
	 Capital Leases Payments
	  	 	—  
	 Interest Payments
	  	 	—  
	 Unfunded Capital Expenditures
	  	 	—  
	 Maintenance Capex
	  	 	—  
	 Cash Taxes
	  	 	—  
	 Other
	  	 	—  
	 Other
	  	 	—  
	 Other
	  	 	—  
		
	 Total Fixed Charges
	  	$	        —  
		
	 Fixed Charge Covenant Ratio
	  	 	#DIVIO!
		
	 Standard
	  	 	0
		
	 Compliance
	  	 	#DIV/O!

  

			
		
	 Name
	 	 
		
	 Signature
	 	 
		
	 Title
	 	 
		
	 Date
	 	 

  

 4 

			
	 Company Name
	  	
	Debt/EBITDA minus Unfunded Capex Ratio	  	
	 Date
	  	

  

									
	  	  	31-Mar	  	30-Jun	  	30-Sep	  	31-Dec
	 Revolver
	  		  		  		  	
	 Term (Current)
	  		  		  		  	
	 Leases (Current)
	  		  		  		  	
	 Term( LT)
	  		  		  		  	
	 Leases (LT)
	  		  		  		  	
	 Letters of credit
	  	—  	  		  		  	
					
	 Total debt
	  	—  	  	—  	  	—  	  	—  
					
	 EBITDA (4 QTR Rolling)
	  		  		  		  	
					
	 Debt/EBITDA
	  	#D1V/O!	  	#DIV/O!	  	#DIV/O!	  	#D1V/O!
					
	 Standard
	  	6.9	  	5.2	  	4.4	  	3.6
					
	 Compliance
	  	#DIV/O!	  	#DIV/O!	  	#DIV/O!	  	#DIV/O!

  

			
		
	 Name
	 	 
		
	 Signature
	 	 
		
	 Title
	 	 
		
	 Date
	 	 

  

 5 

			
	 Company Name
	  	3/31/2009 16:34
	Date	  	
	 Unfunded CAPEX Covenant
	  	

  

													
	  	  	31-Mar	  	30-Jun	  	30-Sep	  	31-Dec
	 YTD CAPEX
	  			  			  			  		
	 YTD CAPEX financing
	  			  			  			  		
					
	 YTD Unfunded CAPEX
	  	$	—  	  	$	—  	  	$	—  	  	$	—  
					
	 Maximum
	  	$	1,000,000	  	$	1,000,000	  	$	1,000,000	  	$	1,000,000
					
	 Compliance
	  	 	YES	  	 	YES	  	 	YES	  	 	YES

  

			
		
	 Name
	 	 
		
	 Signature
	 	 
		
	 Title
	 	 
		
	 Date
	 	 

  

 6 

 Page 18 
  

 SCHEDULE 8.19 
 EBITDA CALCULATIONS 
  

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

 Note: 
 If financial covenant is not reset by April 10, 2010, April test will be FCCR 1.25:1 
 Column A represents actual EBITDA for 2008 retrieved from client's projection model and total matched to 2008 10K 
 Column B represents EBITDA per 2009 projections 
 Column C represents 85% of 2009 projected EBITDA 
 Column D represents rolling EBITDA (A and C) 
 Column E is the same as D except that non-qtr month ends are lower than in D—QTR end periods are equal 
 Column F covenant ( rounded)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]