US Lenders Uses in Existing Obligations Clause

Existing Obligations from Amended and Restated

This Amended and Restated US Loan Agreement dated August 3, 2007 is entered into by and between Wachovia Capital Finance Corporation (Central), formerly known as Congress Financial Corporation (Central), an Illinois corporation, in its capacity as lender of Revolving Loans hereunder (in such capacity together with its successors and assigns, Revolving Lender) and in its capacity as agent (in such capacity together with its successors and assigns, Agent), Monroe Capital Management Advisors LLC, a Delaware limited liability company, in its capacity as agent for the Tranche B Lenders (in such capacity together with its successors and assigns, Tranche B Agent), the lenders party hereto from time to time as lenders of the Tranche B Loan (in such capacity together with their respective successors and assigns, collectively, Tranche B Lenders and individually a Tranche B Lender), SMTC Manufacturing Corporation of California, a California corporation, SMTC Manufacturing Corporation of Massachus

Existing Obligations. US Borrowers hereby acknowledge, confirm and agree that US Borrowers are indebted to Agent and Revolving Lender for outstanding loans and advances to US Borrowers under the Original US Loan Agreement and in respect of Letter of Credit Accommodations (as defined in the Original US Loan Agreement), together with all interest accrued and accruing thereon (to the extent applicable), and all fees, costs, expenses and other charges relating thereto, all of which are unconditionally owing by US Borrowers to Agent and Revolving Lender to the extent set forth in the Original US Loan Agreement, without offset, defense or counterclaim of any kind, nature or description whatsoever.