Document:

<PAGE>

                                                                  EXHIBIT 10.1.9

                                THIRD AMENDMENT

          THIRD AMENDMENT, dated as of February 6, 2001 (this "Amendment"), to
                                                               ---------
the Amended and Restated Credit and Guarantee Agreement, dated as of July 27,
2000, (as amended by the First Amendment and the Second Amendment thereto, and
as may be further amended, supplemented or otherwise modified from time to time,
the "Credit Agreement"), among SMTC Corporation ("Holdings"), HTM Holdings, Inc.
     ----------------                             --------
(the "U.S. Borrower"), SMTC Manufacturing Corporation of Canada (the "Canadian
      -------------                                                   --------
Borrower"; together with the U.S. Borrower, the "Borrowers"), the several banks
--------                                         ---------
and other financial institutions or entities from time to time parties thereto
(the "Lenders"), Lehman Brothers Inc., as advisor, lead arranger and book
      -------
manager (in such capacity, the "Arranger"), The Bank of Nova Scotia, as
                                --------
syndication agent (in such capacity, the "Syndication Agent"), Lehman Commercial
                                          -----------------
Paper Inc., as general administrative agent (in such capacity, the "General
                                                                    -------
Administrative Agent"), The Bank of Nova Scotia, as Canadian administrative
--------------------
agent (in such capacity, the "Canadian Administrative Agent"), Lehman Commercial
                              -----------------------------
Paper Inc., as collateral monitoring agent (in such capacity, the "Collateral
                                                                   ----------
Monitoring Agent"), and General Electric Capital Corporation, as documentation
----------------
agent (in such capacity, the "Documentation Agent").
                              -------------------

                              W I T N E S S E T H
                              - - - - - - - - - -

          WHEREAS, Holdings and the Borrowers have requested that the Lenders
amend certain of the provisions of the Credit Agreement upon the terms and
subject to the conditions set forth below; and

          WHEREAS, the Required Lenders have agreed to amend the Credit
Agreement in the manner and upon the terms and subject to the conditions set
forth below;

          NOW, THEREFORE, the parties hereto hereby agree as follows:

          1.   Defined Terms.  As used herein, terms defined in this Amendment
               -------------
or in the Credit Agreement are used herein as so defined.

          2.   Amendment to Section 10.1 of the Credit Agreement.  Clause (c)
               -------------------------------------------------
of Section 10.1 of the Credit Agreement is hereby amended by deleting the number
"45" and inserting in lieu thereof "30".

          3.   Amendment to Section 10.2 of the Credit Agreement.  Clause (f)
               -------------------------------------------------
of Section 10.2 of the Credit Agreement is hereby deleted in its entirety and
the following new clauses (f) and (g) inserted in lieu thereof:
<PAGE>

                                                                               2

          "(f)  as soon as available, but in any event not later than (i) 30
days after the end of each month (other than the third, sixth, ninth and twelfth
such months) occurring during each fiscal year of Holdings, a schedule setting
forth all Capital Expenditures that the Borrower and its Subsidiaries have made,
agreed to or arranged for during that month; (ii) 45 days after the end of each
of the first three quarterly periods of each fiscal year of Holdings, a schedule
setting forth all Capital Expenditures that the Borrower and its Subsidiaries
have made, agreed to or arranged for during that quarter; and (iii) 45 days
after the end of each fiscal year of Holdings, a schedule of setting forth all
Capital Expenditures that the Borrower and its Subsidiaries have made, agreed to
or arranged for during that year; and

          (g) promptly, such additional financial and other information as any
Lender may from time to time reasonably request."

          4.  Amendment to Section 10.3 of the Credit Agreement.  Section 10.3
              -------------------------------------------------
of the Credit Agreement is hereby amended by (1) deleting the word "and" at the
end of clause (b), (2) deleting the "." at the end of clause (c) and
substituting in lieu thereof, the following: "; and" and (3) adding thereto the
following new clause (d):

          "(d) without limiting the generality of the foregoing, to the
Collateral Monitoring Agent, not later than March 31, 2001, a completed audit of
the Accounts and Inventory of the Borrower and its Subsidiaries performed by an
entity reasonably acceptable to the Collateral Monitoring Agent.

          5.  Amendment to Section 11.7 of the Credit Agreement.  Section 11.7
              -------------------------------------------------
of the Credit Agreement is hereby amended by deleting the amount "$14,000,000"
(set forth opposite fiscal year 2000) and inserting in lieu thereof, the amount
"$27,000,000". The amendment effected by this paragraph 5 shall be given
retroactive effect to December 31, 2000.

          6.  Effectiveness.  The Amendment shall become effective on the date
              -------------
of satisfaction of the following conditions precedent (the "Third Amendment
                                                            ---------------
Effective Date"):
--------------

          (a) The General Administrative Agent shall have received counterparts
     of this Amendment, duly executed and delivered by Holdings and each of the
     Borrowers.

          (b)   The General Administrative Agent shall have received executed
     Lender Consent Letters, substantially in the form of Exhibit A hereto
     ("Lender Consent Letters"), from Lenders constituting the Required Lenders.
       ----------------------

          (c)  The General Administrative Agent shall have received an executed
     Acknowledgment and Consent, in the form set forth at the end of this
     Amendment, from each Loan Party other than Holdings and the Borrowers.
<PAGE>

                                                                               3

          (d)   All corporate and other proceedings, and all documents,
     instruments and other legal matters in connection with the transactions
     contemplated by this Amendment shall be satisfactory in form and substance
     to the General Administrative Agent.

          (e) The General Administrative Agent shall have received from
     Holdings, for the account of each Lender that has executed a Lender Consent
     Letter granting its consent to this Agreement on or prior to 5:00 p.m., New
     York City time on February 9, 2001, an amendment fee equal to 0.10% of such
     Lender's Aggregate Total Outstandings and aggregate undrawn Commitments.

          7.  Representations and Warranties.  After giving effect to the
              ------------------------------
amendment contained herein, on the Third Amendment Effective Date, Holdings and
each of the Borrowers hereby confirms, reaffirms and restates the
representations and warranties set forth in Section 8 of the Credit Agreement;
provided that each reference in such Section 8 to "this Agreement" shall be
--------
deemed to be a reference both to this Amendment and to the Credit Agreement as
amended by this Amendment.

          8.  Continuing Effect; No Other Amendments.  Except as expressly
              --------------------------------------
amended or waived hereby, all of the terms and provisions of the Credit
Agreement and the other Loan Documents are and shall remain in full force and
effect. The amendments contained herein shall not constitute an amendment or
waiver of any other provision of the Credit Agreement or the other Loan
Documents or for any purpose except as expressly set forth herein.

          9.  No Default.  No Default or Event of Default shall have occurred
              ----------
and be continuing as of the Third Amendment Effective Date after giving effect
to this Amendment.

          10. Counterparts.  This Amendment may be executed in any number of
              ------------
counterparts by the parties hereto, each of which counterparts when so executed
shall be an original, but all the counterparts shall together constitute one and
the same instrument.

          11. GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
              -------------
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
<PAGE>

                                                                               4

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

                                   SMTC CORPORATION

                                   By: /s/  Richard Smith
                                       --------------------------
                                     Name: Richard Smith
                                     Title:  Chief Financial Officer

                                   HTM HOLDINGS, INC.

                                   By: /s/  Richard Smith
                                       ---------------------------
                                     Name: Richard Smith
                                     Title:   Chief Financial Officer

                                   SMTC MANUFACTURING CORPORATION OF CANADA

                                   By: /s/  Richard Smith
                                       -----------------------------
                                     Name: Richard Smith
                                     Title:   Chief Financial Officer

                                   LEHMAN COMMERCIAL PAPER INC., as
                                     General Administrative Agent

                                   By: /s/  G. Andrew Keith
                                       ------------------------------
                                     Name: G. Andrew Keith
                                     Title:   Authorised Signatory

                                   LEHMAN COMMERCIAL PAPER INC., as
                                   Collateral Monitoring Agent and as a Lender

                                   By: /s/  G. Andrew Keith
                                       ----------------------------
                                     Name: G. Andrew Keith
                                     Title:   Authorised Signatory
<PAGE>

                                                                               5

                                    THE BANK OF NOVA SCOTIA, as Canadian
                                    Administrative Agent

                                    By: /s/  Paul Phillips
                                        --------------------------
                                      Name: Paul Phillips
                                      Title:   Director

                                    THE BANK OF NOVA SCOTIA, as Syndication
                                    Agent and as a Lender

                                    By: /s/  Liz Hanson
                                        --------------------------
                                      Name: Liz Hanson
                                      Title:   Director

                                    GENERAL ELECTRIC CAPITAL
                                    CORPORATION, as Documentation Agent and as
                                    a Lender

                                    By: /s/  John Goodwin
                                        --------------------------
                                      Name: John Goodwin
                                      Title:   Duly Authorized Signatory
<PAGE>

                           ACKNOWLEDGMENT AND CONSENT

          Each of the undersigned parties to the Amended and Restated Guarantee
and Collateral Agreement, dated as of July 27, 2000, as amended by the First
Amendment and the Second Amendment thereto, and as amended, supplemented or
otherwise modified from time to time, made by the undersigned in favor of Lehman
Commercial Paper Inc., as General Administrative Agent, for the benefit of the
Lenders, hereby (a) consents to the transactions contemplated by the Third
Amendment to the Amended and Restated Credit and Guarantee Agreement and (b)
acknowledges and agrees that the guarantees and grants of security interests
contained in such Amended and Restated Guarantee and Collateral Agreement and in
the Security Documents are, and shall remain, in full force and effect after
giving effect to the Third Amendment and all prior modifications to the Amended
and Restated Credit and Guarantee Agreement.

                                       SMTC CORPORATION

                                       By: /s/  Richard Smith
                                           ---------------------------
                                       Title:  Chief Financial Officer

                                       HTM HOLDINGS, INC.

                                       By: /s/  Richard Smith
                                           ----------------------------
                                       Title:  Chief Financial Officer

                                       SMTC MANUFACTURING CORPORATION
                                       OF TEXAS

                                       By: /s/  Richard Smith
                                           ----------------------------
                                       Title:  Chief Financial Officer

                                       SMTC MANUFACTURING CORPORATION
                                       OF CALIFORNIA

                                       By: /s/  Richard Smith
                                           ----------------------------
                                       Title:  Chief Financial Officer

<PAGE>

                                       SMTC MANUFACTURING CORPORATION
                                       OF NORTH CAROLINA

                                       By: /s/  Richard Smith
                                           ----------------------------
                                       Title:  Chief Financial Officer

                                       SMTC MEX HOLDINGS, INC.

                                       By: /s/  Richard Smith
                                           ----------------------------
                                       Title:  Chief Financial Officer

                                       SMTC MANUFACTURING CORPORATION
                                       OF COLORADO

                                       By: /s/  Richard Smith
                                           ----------------------------
                                       Title:  Chief Financial Officer

                                       SMTC MANUFACTURING CORPORATION
                                       OF MASSACHUSETTS

                                       By: /s/  Richard Smith
                                           ----------------------------
                                       Title:  Chief Financial Officer

                                       PENSAR CORPORATION

                                       By: /s/  Richard Smith
                                           ----------------------------
                                       Title:  Chief Financial Officer
<PAGE>

                                                                       EXHIBIT A
                             LENDER CONSENT LETTER

                               HTM HOLDINGS, INC.
                    SMTC MANUFACTURING CORPORATION OF CANADA
                              AMENDED AND RESTATED
                         CREDIT AND GUARANTEE AGREEMENT
                           DATED AS OF JULY 27, 2000

To:  Lehman Commercial Paper Inc.,
      as General Administrative Agent
     3 World Financial Center
     New York, New York 10285

Ladies and Gentlemen:

          Reference is made to the Amended and Restated Credit and Guarantee
Agreement, dated as of July 27, 2000, as amended by the First Amendment and the
Second Amendment thereto, and as may be further amended, supplemented or
otherwise modified from time to time (the "Credit Agreement"), among HTM
                                           ----------------
Holdings, Inc. (the "U.S. Borrower"), SMTC Corporation ("Holdings"), SMTC
                     -------------                       --------
Manufacturing Corporation of Canada (the "Canadian Borrower"; together with the
                                          -----------------
U.S. Borrower, the "Borrowers"), the several banks and other financial
                    ---------
institutions or entities from time to time parties thereto (the "Lenders"),
                                                                 -------
Lehman Commercial Paper Inc., as general administrative agent (in such capacity,
the "General Administrative Agent"), and others.  Unless otherwise defined
     ----------------------------
herein, capitalized terms used herein and defined in the Credit Agreement are
used herein as therein defined.

          The Borrowers have requested that the Lenders consent to amend the
Credit Agreement on the terms described in the Third Amendment to which a form
of this Lender Consent Letter is attached as Exhibit A (the "Third Amendment").
                                                             ---------------

          Pursuant to Section 15.1 of the Credit Agreement, the undersigned
Lender hereby consents to the execution by the General Administrative Agent of
the Third Amendment.

                                     Very truly yours,

                                     LEHMAN COMMERCIAL PAPER INC.

                                     By: /s/  G. Andrew Keith
                                         ---------------------------
                                         Name: G. Andrew Keith
                                         Title:  Authorized Signatory

<PAGE>
                              THE BANK OF NOVA SCOTIA

                              By: /s/  Paul Phillips
                                  ----------------------------
                                  Name:  Paul Phillips
                                  Title:  Director

                              THE BANK OF NOVA SCOTIA

                              By: /s/  Liz Hanson
                                  --------------------------
                                  Name:  Liz Hanson
                                  Title:  Director

                              AMMC CDO II, LIMITED
                              (American Money Management Corp., as Collateral
                              Manager)

                              By: /s/  David P. Meyer
                                  ---------------------------
                                  Name:  David P. Meyer
                                  Title:  Vice President

                              COMERICA BANK

                              By:  /s/  Pamela R. Horne Eidt
                                   ------------------------------
                                  Name:  Pamela R. Horne Eidt
                                  Title:  Assistant Vice President

                              IBM CREDIT CORPORATION

                              By: /s/  Thomas S. Curcio
                                  ----------------------------
                                  Name:  Thomas S. Curcio
                                  Title:  Manager of Credit

                              ROYAL BANK OF CANADA

                              By:  /s/  Stephanie Babich
                                   ----------------------------
                                  Name:  Stephanie Babich
                                  Title:  Senior Manager

Dated as of February 9, 2001<PAGE>

                                                                   Exhibit 10.17

                                SMTC CORPORATION
                                  625 Hood Road
                            Markham, Ontario L3R 4N6

                                          July 27, 2000

Mr. Stanley C. Plzak
c/o Pensar Corporation
2222 E. Pensar Drive
Appleton, WI  54911

      Re:   Employment Agreement

Dear Mr. Plzak:

      This letter sets forth the terms and conditions of your employment with
SMTC Corporation, a Delaware corporation (the "Company") to be effective as of
the date of closing of the transactions (the "Effective Date") described in the
Stock Purchase Agreement dated as of May 23, 2000 among Pensar Corporation, a
Wisconsin corporation ("Pensar"), the Company, you and the other stockholders of
the Company (the "Stock Purchase Agreement"). This Agreement is entered into in
connection with the transactions described in the Stock Purchase Agreement
pursuant to which you, as a stockholder of Pensar, will receive certain cash
payments and common stock of the Company upon the purchase of your shares of
common stock of Pensar.

      1. Employment and Services. You shall be employed as Executive Vice
President, Pensar Corporation for the period beginning on the Effective Date and
ending on December 31, 2001 or on such earlier date as your employment is
terminated pursuant to paragraph 4 hereof (the "Employment Period"). The
Employment Period shall automatically be extended for successive one-year terms
on December 31 of each year beginning with December 31, 2001, unless (i) either
party has given written notice of non-renewal to the other party at least 90
days prior to the scheduled expiration date of the Employment Period or (ii)
your employment has been terminated pursuant to paragraph 4 hereof.

      During the Employment Period, you shall render such services of a senior
executive nature to the Company and its subsidiaries, including Pensar
Corporation (collectively, the "SMTC Group"), and shall have such powers, duties
and responsibilities as may from time to time be prescribed by the Company's
Board of Directors (the "Board"). You shall perform
<PAGE>

                                                                 Pensar Employee
                                                            Employment Agreement
                                                                   July 27, 2000

and discharge, faithfully, diligently and competently such services, duties and
responsibilities. You shall devote all of your business time and attention and
your best efforts and ability to the business and affairs of the SMTC Group and
shall not engage in other business activities (whether or not compensated)
during the Employment Period without prior written consent of the Board. You
agree to serve, if elected or appointed thereto, in one or more positions as an
officer or director of any one or more current or future members of the SMTC
Group or any of their affiliates, or as an officer, trustee, director or other
fiduciary of any pension or other employee benefit plan of any member of the
SMTC Group. Service in such additional positions will be without additional
compensation except for reimbursement of reasonably related business expenses on
the same terms as provided elsewhere in this Agreement.

      2. Compensation. As compensation for your services performed under this
Agreement during the Employment Period, the Company shall pay you a base salary
at the rate of $275,000 per year, subject to such increases as the Board may
approve in its sole discretion ("Base Salary"). Such compensation shall be
payable in installments in accordance with the Company's regular payroll
practices.

      3. Benefits.

            a. Participation in Benefit Plans. During the Employment Period, you
shall be entitled to participate in or receive benefits under any life insurance
plan, health and accident insurance plan, retirement plan and all other benefit
arrangements generally available to the executive officers and employees of the
Company (other than severance plans or arrangements) as in effect from time to
time, except to the extent these benefit plans are duplicative of benefits
otherwise provided to you under this agreement. Participation in these benefit
plans shall be subject to (i) the terms of the applicable plan documents, (ii)
generally applicable policies of the Company, and (iii) the discretion of the
Board or any administrative or other committee provided for in or contemplated
by such plan.

            b. Business Expenses. The Company will reimburse your reasonable
out-of-pocket expenses incurred in connection with the performance of your
services hereunder, in each case subject to and consistent with the policies of
the Company.

            c. Vacation. During the Employment Period you shall be entitled to
forty paid vacation days in every fiscal year, to be taken at such times and
intervals as shall be determined by you in your reasonable discretion and as
consented to by the Board, which consent shall not be unreasonably withheld. You
shall also be entitled to all paid holidays given by the Company to its
employees. Your paid vacation days shall be prorated for any period of service
hereunder less than a full year. You will not be entitled to cash compensation
for any vacation time not taken during the term hereof.

                                      -2-
<PAGE>

                                                                 Pensar Employee
                                                            Employment Agreement
                                                                   July 27, 2000

            d. Other Allowances. You shall be entitled to annual allowances of
(i) $15,000 per annum for a company car, (ii) $2,000 per annum for tuition
reimbursement, and (iii) $1,000 per annum for third-party financial planning
services. You shall also be entitled to a one-time $1,000 allowance for the
purchase of a computer, to be repaid over 18 months through payroll deductions.

            e. Stock Option. On the Effective Date, the Company shall grant you
a stock option to purchase _________ shares of Common Stock, $0.001 par value,
of the Company at an exercise price of $16.00 per share. Such stock option shall
be pursuant to the Company's 2000 Stock Option Plan as in effect from time to
time and any applicable stock grant agreement and the Stockholders Agreement
dated as of July 27, 2000, by and among the Company and certain of its
stockholders.

      4. Termination and Severance. The Employment Period shall terminate prior
to its scheduled expiration date on the first to occur of (i) your death or
permanent disability (defined as your actual inability to perform normal duties
for a period of 90 consecutive days or for a total of 120 days in any two-year
period or your prospective inability to perform such duties for such period as
determined in good faith by the Board), (ii) a vote of the Board directing such
termination for Cause, (iii) a vote of the Board directing such termination
without Cause, or (iv) termination by you for Good Reason (which termination
shall in any event be upon not less than 30 days' prior written notice). In the
event of termination of the Employment Period pursuant to clauses (iii) or (iv)
above and so long as you comply with the restrictions set forth in paragraphs 5
and 6 below, the Company shall continue to pay your Base Salary until the date
which is one year following the date of such termination or until December 31,
2001, whichever is later. Except as set forth in this paragraph 4, you shall not
be entitled to any compensation or other payment from the Company or any current
or future member, or affiliate of any such member, of the SMTC Group in
connection with the termination of your employment. For purposes of this
Agreement, (x) "Cause" shall mean (i) your willful and repeated failure to
comply with the lawful directives of the Board, (ii) any criminal act or act of
dishonesty, disloyalty, misconduct or moral turpitude by you that is injurious
to the property, operations, business or reputation of any member of the SMTC
Group, or (iii) your material breach of this Agreement that is not cured within
30 days after written notice thereof to you by the Company (provided, however,
that the Company shall be required to allow only one such cure period in each
twelve-month period), and (y) "Good Reason" shall mean (i) the Company's
material breach of this Agreement that is not cured within 30 days after written
notice thereof to the Company by you or (ii) a reduction in your
responsibilities and authority such that you no longer function as Executive
Vice President, Pensar Corporation, provided however, that if you do not
terminate within 30 days after the Company has provided you notice of any such
reduction in responsibilities (provided, however, that the Employee shall be
required to allow only one such cure period in each twelve-month period), then
you shall be deemed to have waived your right to terminate for Good Reason based
on such reduction.

                                      -3-
<PAGE>

                                                                 Pensar Employee
                                                            Employment Agreement
                                                                   July 27, 2000

      5. Confidential Information. You acknowledge that by reason of the
transactions described in the Stock Purchase Agreement and by reason of your
employment by Pensar Corporation (during the term prior to the Employment
Period) and the Company, you have acquired and will acquire information
concerning the business or affairs of members of the SMTC Group (collectively,
the "Confidential Information"). You further acknowledge that the Confidential
Information is the property of the SMTC Group. You shall not at any time during
or after the Employment Period without the prior written consent of the Board,
disclose to any unauthorized person or use for your own account or for the
account of any person other than the SMTC Group or its affiliates any
Confidential Information, except to the extent necessary to comply with (i)
applicable law or regulation or (ii) an order of a court or governmental
authority acting within its jurisdiction.

      Notwithstanding anything contained in this Agreement to the contrary, the
term "Confidential Information" shall not include information that (i) becomes
generally available to the public other than as a result of a disclosure by you
or anyone to whom you transmit Confidential Information; (ii) was available to
you on a nonconfidential basis prior to acquiring such information in connection
with your employment by Pensar Corporation or the Company or otherwise from
Pensar Corporation, the Company or another member of the SMTC Group (including
during the term prior to the Employment Period); (iii) during or after the
Employment Period becomes available to you on a nonconfidential basis from a
source other than the Company or another member of the SMTC Group who, to your
knowledge, is not bound by a confidentiality agreement or other obligation of
secrecy with the Company with respect to such information; or (iv) was known to
you or in your possession prior to the date you acquired such information in
connection with your employment by Pensar Corporation or the Company or
otherwise from Pensar Corporation, the Company or by another member of the SMTC
Group (including during the term prior to the Employment Period).

      Upon termination of the Employment Period or at the request of the Board
at any time, you shall deliver to the Board all documents containing
Confidential Information or relating to the business or affairs of the SMTC
Group or their affiliates that you may then possess or have under your control.

      6. Non-Competition; Non-Solicitation.

            a. Non-Competition. You acknowledge that you are and will be in
possession of Confidential Information, that your services are of unique and
great value to the SMTC Group, and that some restrictions on your activities
during and after your employment are necessary to protect the goodwill,
Confidential Information and other legitimate interests of the SMTC Group.
Accordingly, during the Employment Period and for the period thereafter during
which you receive continued payments of your Base Salary pursuant to Section 4
or, in the case of termination of your employment for Cause pursuant to Section
4(ii), for a period of

                                      -4-
<PAGE>

                                                                 Pensar Employee
                                                            Employment Agreement
                                                                   July 27, 2000

one year following the date of termination of your employment (the "Non-Compete
Period"), you shall not, directly or indirectly, own, manage, control,
participate in, consult with, render services to, or in any manner engage in,
any enterprise engaged in the design, development, manufacture or assembly of
printed circuit boards or other electronic manufacturing services within any
geographical area in which the SMTC Group or its affiliates do business on the
date of termination of your employment. Such geographical area shall include but
not be limited to North America (including Mexico). Nothing herein shall
prohibit you from being a passive owner of not more than 5% of any
publicly-traded class of capital stock of any entity engaged in a competing
business.

            b. Non-Solicitation of Employees, Suppliers and Customers. During
the Non-Compete Period, you shall not (i) interfere with the relationship
between the SMTC Group or any of its affiliates on the one hand, and any of
their employees on the other hand, or induce or attempt to induce any employee
of the SMTC Group or its affiliates to terminate his or her employment, (ii)
hire directly or through another entity any person who was an employee of the
SMTC Group or any of its affiliates at any time during the Employment Period
(other than a former employee of the SMTC Group who left his or her employment
without any inducement by you), (iii) induce or attempt to induce any
independent contractor providing services to the SMTC Group or any of its
affiliates to terminate or diminish its relationship with the SMTC Group or its
affiliates, (iv) induce or attempt to induce any customer, supplier, licensee or
other business relation of the SMTC Group or its affiliates to cease doing
business with such entity, or (v) in any way interfere in any material respect
with the relationship between any such customer, supplier, licensee or business
relation and the SMTC Group or its affiliates.

            c. Scope of Restriction. If, at the time of enforcement of this
paragraph 6, a court shall hold that the duration, scope or area restrictions
stated herein are unreasonable under circumstances then existing, you agree that
the maximum duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area.

            d. Necessity of Restraints. You acknowledge that the restraints
imposed by this paragraph 6 and by paragraph 5 above are reasonable and
necessary for the protection of the SMTC Group and its affiliates, and that any
such entity would be irreparably harmed by a breach by you of these provisions,
and that the SMTC Group have the right and remedy to seek specific performance
and accounting.

            e. Enforceability of Covenants Under Stock Purchase Agreement.
Notwithstanding anything to the contrary in this Agreement, nothing herein shall
limit or impair in any way the separate and independent enforceability of the
non-competition and confidentiality covenants set forth in Sections 7 and 8 of
the Stock Purchase Agreement, which covenants shall be and remain separate and
independent covenants enforceable in accordance with their terms.

                                      -5-
<PAGE>

                                                                 Pensar Employee
                                                            Employment Agreement
                                                                   July 27, 2000

      7. Withholding; Currency. All payments made by the Company under this
Agreement shall be net of any tax or other amounts required to be withheld by
the Company under any applicable law or legal requirement. All amounts set forth
in this Agreement are denominated in US Dollars.

      8. Prior Agreements. Except as expressly provided herein, all prior
agreements, arrangements or understandings, written or oral, with respect to
your employment with the Company or any subsidiary or affiliate thereof are
superseded by this Agreement and shall be of no further force and effect.

      9. Survival. The provisions of paragraphs 4, 5 and 6 hereof will survive
any termination of this Agreement in accordance with their respective terms.

      10. Governing Law. All questions concerning the construction, validity and
interpretation of this Agreement shall be governed by the laws of the State of
Delaware without giving effect to any choice or conflict of laws provision or
rule that would cause the application of the domestic substantive laws of any
other jurisdiction.

      11. Notices. All notices, requests and demands to or upon the parties
hereto to be effective shall be in writing, by facsimile, by overnight courier
or by registered or certified mail, postage prepaid and return receipt
requested, and shall be deemed to have been duly given or made upon: (i)
delivery by hand, (ii) one business day after being sent by overnight courier;
or (iii) in the case of transmission by facsimile, when confirmation of receipt
is obtained. Such communications shall be addressed and directed to the parties
as follows (or to such other address as either party shall designate by giving
like notice of such change to the other party):

            If to you, at the address first stated above.

            If to the Company:

                  Pensar Corporation
                  2222 E. Pensar Drive
                  Appleton, WI 54911

            with a copy to:

                  SMTC Corporation
                  635 Hood Road
                  Markham, Ontario
                  L3R 4N6

                                      -6-
<PAGE>

                                                                 Pensar Employee
                                                            Employment Agreement
                                                                   July 27, 2000

            and:

                  Ropes & Gray
                  One International Place
                  Boston, MA 02110
                  Attention: Alfred O. Rose
                  Facsimile: 617-951-7050

      12. Amendment; Waiver. No provision of this Agreement may be amended
modified, waived or discharged unless such amendment waiver, modification or
discharge is approved by the Board and agreed to in writing signed by you and
such officer as may be specifically authorized by the Board in connection with
such approval. No waiver of any condition or provision of this Agreement shall
be deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.

      13. Assignment. This Agreement shall inure to the benefit of and be
binding upon (i) you, your personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees and (ii)
the Company and its successors (including, without limitation, by means of
reorganization, merger, amalgamation, consolidation or liquidation) and
permitted assigns. The Company may assign this Agreement to any member of the
SMTC Group or to any successor of the Company by reorganization, merger,
consolidation or liquidation and any transferee of all or substantially all of
the business or assets of the Company or of any division or line of business of
the Company with which you are associated. The Company and the members of the
SMTC Group require your personal services hereunder and you may not assign this
Agreement.

                                    * * * * *

                                      -7-
<PAGE>

                                                                 Pensar Employee
                                                            Employment Agreement
                                                                   July 27, 2000

      Please execute the extra copy of this letter Agreement in the space below
and return it to the undersigned at the address set forth above to confirm your
understanding and acceptance of the agreements contained herein.

                                       Very truly yours,

                                       SMTC Corporation

                                       By: /s/ Paul Walker
                                          --------------------------
                                       Name: Paul Walker
                                       Title:  President

Accepted and agreed to:

 /s/ Stanley C. Plzak
-------------------------
Stanley C. Plzak

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