Document:

Letter of amendment dated December 4, 2009

 Exhibit 10.59 
 Wachovia Capital Finance Corporation (Canada) 
 40 King Street West 
 Suite 2500 
 Toronto, ON M5H 3Y2 
  

					
	

	  	December 4, 2009	  	

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

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

 Reference is made to the Second Amended and
Restated US Loan Agreement dated as of August 7, 2008 as amended by letter agreement dated April 2, 2009 and August 4, 2009 (as amended, modified, supplemented, extended, renewed, restated or replaced from time to time, the “US
Loan Agreement”) between Wachovia Capital Finance Corporation (Central), as the Revolving Lender and the Agent, Export Development Canada, as the Tranche B Lender and the Tranche B Agent, and each of SMTC Manufacturing Corporation of
California, SMTC Manufacturing Corporation of Massachusetts and SMTC Mex Holdings, Inc., as the US Borrowers. 
  

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

  

	 	2.	Amendment to US Loan Agreement. 

  

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

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

  

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

 “8.24    Maximum Unfunded Capital Expenditures 
 Each US Borrower shall ensure that SMTC Corporation and its Subsidiaries do not, directly or indirectly, make or commit to
make, whether through purchase, capital leases or otherwise, unfunded Capital Expenditures in an aggregate amount in excess of US$1,600,000 for fiscal year 2009 of SMTC Corporation. 
 It is the intention of the Agent, the Tranche B Agent and the US Borrowers to reset in writing the Maximum Unfunded Capital
Expenditures covenant in Section 8.24 by July 10, 2010 and if the Agent, the Tranche B Agent and the US Borrowers cannot agree on such reset by July 10, 2010 then the maximum unfunded capital expenditure amount above shall be
US$500,000 plus one hundred (100%) percent of the unused portion of the permitted Capital Expenditures amount for fiscal year 2009 for fiscal year 2010 and US$500,000 for each fiscal year of SMTC Corporation on a go forward basis.”.

  

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

  

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

  

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

  

	 	5.	Amendment Fee. The US Borrowers shall pay to the Agent an amendment fee of US$2,500 which amendment fee shall be fully earned as of and payable on the date
hereof. The US Borrowers shall pay to the Tranche B Agent an amendment fee of US$2,500 which amendment fee shall be fully earned as of and payable on the date hereof. 

  

	 	6.	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.

  

 Page 2 

	 	7.	Continuance of US Loan Agreement and Security. 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

 Page 3 

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

 Page 4 

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

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

  

 Page 5 

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

	 		 	
		 		 	 Name:
	 	PETER JOHNSTON	 		 	
		 		 	 Title:
	 	LOAN PORTFOLIO MOR	 		 	
					
		 	 By:
	 	
 

	 		 	
		 		 	 Name:
	 	KEVIN SKILLITER	 		 	
		 		 	 Title:
	 	SR ASSET MANAGER	 		 	

  

 Page 6 

															
		 	 Agreed this 4th day of December 2009.
	 		 		 		 	
			
		 	US BORROWER:	 	US BORROWER:
			
		 	 SMTC MANUFACTURING
 CORPORATION OF CALIFORNIA
	 	 SMTC MANUFACTURING
 CORPORATION OF MASSACHUSETTS

						
		 	 By:
	 	
 

	 		 	 By:
	 	
 

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

		 		 	 Name:
	 		 		 		 	 Name:
	 	
		 		 	 Title:
	 		 		 		 	 Title:
	 	
					
		 	 US BORROWER:
	 		 		 	
					
		 	SMTC MEX HOLDINGS, INC.	 		 		 	
							
		 	 By:
	 	
 

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

  

 Page 7 

 OBLIGORS: 
 Each of the undersigned Obligors hereby: 
  

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

  

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

  

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

  

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

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

															
		 	SMTC CORPORATION	 		 	SMTC HOLDINGS, LLC
						
		 	 By:
	 	
 

	 		 	 By:
	 	
 

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

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

						
		 	 By:
	 	
 

	 		 	 By:
	 	
 

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

		 		 	 Name:
	 		 		 		 	 Name:
	 	
		 		 	 Title:
	 		 		 		 	 Title:
	 	

  

 Page 8 

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

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

  

 Page 9Note Modification Agreement

 Exhibit 4.5 
 NOTE MODIFICATION AGREEMENT 
 THIS
NOTE MODIFICATION AGREEMENT (this “Agreement”) is made and entered into on March 11, 2010, to be effective as of the 28th day of February, 2010, by and among FNDS3000 CORP., a Delaware corporation (the “Issuer”), and
SHERINGTON HOLDINGS, LLC, a Georgia limited liability company (the “Purchaser”). 
 W I T
N E S S E T H : 
 WHEREAS, the Issuer and the Purchaser entered into that
certain Amended and Restated Note Purchase Agreement dated as of December 1, 2008 (as amended or otherwise modified from time to time, the “Purchase Agreement”), and in connection therewith, the Issuer executed and delivered in
favor of the Purchaser that certain Amended and Restated Secured Convertible Promissory Note, dated December 1, 2008 (the “Original Promissory Note”), which Original Promissory Note evidenced the obligation of the Issuer to
repay loans to the Purchaser in the aggregate principal amount of $1,000,000 (the “Loans”); and 
 WHEREAS, the
Issuer and the Purchaser entered into that certain First Amendment to Amended and Restated Note Purchase Agreement dated as of July 1, 2009 (the “First Amendment”), and in connection therewith, the Issuer executed and delivered
in favor the Purchaser that certain Second Amended and Restated Secured Convertible Promissory Note, dated July 1, 2009 (as amended or otherwise modified from time to time, the “Promissory Note”), which re-evidenced the Loans;
and 
 WHEREAS, the Promissory Note shall mature, and all amounts owing thereunder, including without limitation all principal
and interest, shall become automatically and immediately due and payable on February 28, 2010; and 
 WHEREAS, the Issuer
has requested that Purchaser modify the Promissory Note to extend the maturity date thereof to March 31, 2010; and 
 WHEREAS, the Purchaser is willing to grant such request, subject to the terms and conditions set forth herein; 
 NOW,
THEREFORE, in consideration of the foregoing premises, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Defined Terms. All capitalized terms used herein and not otherwise expressly defined herein shall have the respective meanings
given to such terms in the Promissory Note. 
 2. Acknowledgements by Issuer. Issuer hereby acknowledges and agrees that
(i) as of the close of business on the date hereof, the outstanding balance of the Loan is equal to a principal amount of $1,000,000 plus accrued and unpaid interest owing in respect of the Loan, and (ii) all Obligations of Issuer to the
Purchaser are secured by validly perfected first priority security interest in all of the assets of the Issuer. 

 3. Amendment to Promissory Note. Effective upon satisfaction of the conditions set
forth in paragraph 4 below, and in reliance upon the representations, warranties, agreements and covenants of the Issuer set forth herein, the second sentence of the first full paragraph of the Promissory Note (after the legend at the top of the
first page thereof) is hereby amended and restated in its entirety to read as follows: 
 All unpaid principal, together with any
then unpaid and accrued Interest and other amounts payable hereunder, shall be due and payable on the earlier of: (i) the close of business on March 31, 2010, or (ii) when, upon or after the occurrence of an Event of Default (as
defined below), such amounts become due and payable to Purchaser in accordance with the terms hereof (the earliest of such dates being hereinafter referred to as the “Maturity Date”). 
 4. Effectiveness. The modification provided in paragraph 3 shall be effective as of February 28, 2010 upon the execution and
delivery of this Agreement by the parties hereto. 
 5. Reaffirmation of Transaction Documents. The Issuer hereby
represents and warrants that the facts set forth in the recitals to this Agreement are true and correct, and hereby restates, ratifies, and reaffirms each and every term, condition, representation and warranty heretofore made by it under or in
connection with the execution and delivery of the Purchase Agreement, the Promissory Note and each other security agreement and other agreements, document and instrument executed and delivered by the Issuer from time to time in connection therewith,
as fully as though such representations and warranties had been made on the date hereof and with specific reference to this Agreement, and the Issuer hereby further acknowledges and agrees that the Transaction Documents and the related security
agreement and other agreements, documents and instruments, and all terms, conditions, covenants, agreements and other provisions thereof remain in full force and effect as originally written, without waiver or modification and are hereby ratified
and confirmed, and shall continue to constitute the legal, valid and binding and enforceable obligation of the Issuer to the Purchaser. 
 6. No Event of Default; No Offset, Counterclaim. To induce the Purchaser to enter into this Agreement, the Issuer hereby (a) represents and warrants that, as of the date hereof and after
giving effect to the terms hereof, there exists no Event of Default under the Promissory Note; (b) acknowledges and agrees that no right of offset, defense, counterclaim, claim, causes of action or objection in favor of the Issuer against the
Purchaser exists arising out of or with respect to any of the Transaction Documents, the related guaranties, agreements, documents and instruments, the obligations of the Issuer thereunder, or with respect to the administration or funding of the
Loan, or under any other facts or circumstances whatsoever; and (c) releases, acquits, remises and forever discharges the Purchaser and its affiliates and all of their past, present and future officers, directors, employees, agents, attorneys,
representatives, successors and assigns from any and all claims, demands, actions and causes of action, whether at law or in equity, whether now accrued or hereafter maturing, and whether known or unknown, which the

 
Issuer now or hereafter may have by reason of any manner, cause or things to and including the date of this Agreement with respect to matters arising out of or with respect to the Transaction
Documents, the related guaranties, agreements, documents and instruments, the obligations of the Issuer thereunder, or any other arrangement or relationship between the Purchaser and the Issuer. 
 7. Miscellaneous. The Issuer agrees to take such further action as the Purchaser shall request in connection herewith to evidence the
agreements herein contained. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which, when so executed and delivered, shall be deemed to be an original and all of which
counterparts, taken together, shall constitute but one and the same instrument. This Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the parties hereto. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Georgia, other than its laws respecting choice of law. Each of the Transaction Documents and the related guaranties, agreements, documents and instruments shall be and remain in full force and
effect, and shall constitute the legal, valid, binding and enforceable obligations of the Issuer to the Purchaser. 
 8. No
Amendment or Waiver. The Issuer acknowledges that (a) the Purchaser has not agreed to (and has no obligation whatsoever to discuss, negotiate or agree to) any further restructuring, modification, amendment, waiver or forbearance with
respect to the Transaction Documents or the obligations of the Issuer thereunder or relating thereto, (b) no understanding with respect to any restructuring, modification, amendment, waiver or forbearance with respect to the Transaction
Documents or the obligations of the Issuer thereunder or relating thereto shall constitute a legally binding agreement or contract, or have any force or effect whatsoever, unless and until reduced to writing and signed by authorized representatives
of each party hereto, and (c) the execution and delivery of this Agreement has not established any course of dealing between the parties hereto or created any obligation or agreement of the Purchaser with respect to any future restructuring,
modification, amendment, waiver or forbearance with respect to the Transaction Documents or the obligations of the Issuer thereunder or relating thereto. 

 IN WITNESS WHEREOF, Issuer and Purchaser have caused their duly authorized officers to set
their hands and seals as of the day and year first above written. 
  

			
	“ISSUER”
	
	FNDS3000 CORP.
		
	By:	 	/s/ John Watson
		 	Name: John Watson
		 	Title: Executive Vice President
		
	Attest:	 	/s/ Joseph F. McGuire
		 	Name: Joseph F. McGuire
		 	Title: Chief Financial Officer
	
	[CORPORATE SEAL]
	
	“PURCHASER”
	
	SHERINGTON HOLDINGS, LLC.
		
	By:	 	/s/ Raymond Goldsmith
		 	Name: Raymond Goldsmith
		 	Title: Chairman and CEO

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