Document:

<PAGE>

                                                                   Exhibit 10.19

      EMPLOYMENT AGREEMENT, agreed to be entered into on and effective as of
October 1, 2001 (the "Effective Date"), by and between MOORE MEDICAL CORP., a
                      --------------
Delaware corporation with an office in New Britain, Connecticut (the
"Employer"), and JON GARRITY of 133 Cutlers Farm Road, Monroe, CT 06468 (the
 --------
"Employee").
 --------

      The Employer and Employee hereby agree as follows:

      1. Term; Duties. For the period from October 1, 2001 through December 31,
         ------------
2002 (or earlier, pursuant to paragraphs 6, 7, 15 or 16) (the "Term"), the
                                                               ----
Employer will employ the Employee, and the Employee will serve the Employer, as
its Senior Vice President of Supply Chain, reporting to its President and
subject at all times to the direction of its Board of Directors and Executive
Committee. During the Term the Employee's office will be at such office of the
Employer in Connecticut as the Employer may designate. The Employee agrees that
during the Term he will devote his entire working time and give his best efforts
and attention to the business of the Employer. The Employee shall not be
required to perform duties inconsistent with those normally assigned by the
Employer to its executive level employees.

      2. Salary. As compensation for his services during the Term, the Employer
         ------
will pay the Employee, in installments on the Employer's regular payroll payment
dates and subject to statutory withholding amounts, a salary at the annual rate
of $172,000. The Compensation Committee of the Employer's Board of Directors
may, in its absolute discretion, approve an inflation-adjustment in the annual
rate of the Employee's salary for 2002.

      3. Bonus Compensation. As additional compensation for his services during
         ------------------
the Term, the Employer will pay the Employee such bonus compensation as may
become due to senior executive officers of the Employer under the 2001 Executive
Officers' Bonus Plan of the Employer. The Employee has received a copy of said
Plan. The Employee will, during the Term, be entitled to participate as a senior
executive officer of the Employer under such Executive Officers' Bonus Plan as
the Employer's Board of Directors may adopt for 2002.

      4. Vacation; Benefits. The Employee will be entitled to three weeks
         ------------------
vacation during each calendar year during the Term. The Employee has received a
list of the Employer's current benefit plans and policies regarding severance,
sick leave and the like, available or applicable to the Employer's executives,
including the Employee. The Employee acknowledges that said list does not set
forth all material terms and conditions of these plans and policies, and that
they are subject to modification or elimination by the Employer. If a new
benefit plan is made available to officers of the Employer generally, the
Employee will be a participant thereunder.

      5. Non-Competition. The Employee covenants and agrees that during the
         ---------------
Term, and until six months thereafter, he will not, directly or indirectly,
engage or own any interest in any distributor of medical or surgical supplies or
pharmaceutical, whether as principal, agent, partner, director, officer,
stockholder, investor, lender, consultant, employee, or in any other capacity.
The Employer will not unreasonably withhold its consent in writing to the
Employee's employment after the Term by a company not principally engaged in the
distribution of medical, surgical or pharmaceutical products which has a
subsidiary, division or other separate business unit engaged in such business if
the company in writing requests such consent from the Employer and gives the
Employer its written agreement, in form and substance satisfactory to the
Employer, which (i) provides that the Employee's services for said company will
not, directly or indirectly, relate to the business or affairs of said
subsidiary, division or unit or to the development of such a distribution
business, (ii) sets forth the practical steps that said company will take to
assure compliance with clause (i) hereof, and (iii) grants the Employer the
right and practical ability to have its independent accountants determine
compliance or non-compliance with said clause. The Employee agrees that a remedy
at law for any breach or threatened breach of the foregoing covenant will be
inadequate, and that Employer will be entitled to temporary and permanent
injunctive relief in respect thereof without the necessity of posting a bond or
proving actual damage to Employer.

      6. Death. The death of the Employee will terminate the Term.
         -----

      7. Incapacity. If during the Term the Employee is unable, on account of
         ----------
illness or other incapacity, to perform his duties for a total of more than 45
consecutive, or an aggregate of 75 days during any twelve month period, the

                                       1

<PAGE>

Employer has the right (subject to compliance with applicable law) to terminate
the Term on ten days' written notice to the Employee, and the Employee will
thereafter be entitled to receive only one-half of his salary installments
otherwise payable until the earlier of the last day of (i) the month-end after
the delivery of said notice, or (ii) the Term (determined without giving effect
to such termination).

      8. Employer Information. All information and materials disclosed by the
         --------------------
Employer to the Employee or acquired at the Employer's expense by the Employee
or acquired or developed by the Employee in connection with his services under
this Agreement, all trade secrets of the Employer and all Work-Product
(hereinafter defined) (herein collectively "Employer Information") shall be and
                                            --------------------
remain the sole property of the Employer. The Employee shall protect all
Employer Information which may be in his possession or custody and shall deliver
all such Information (and all copies thereof, in any media) to the Employer at
its request. Notwithstanding the foregoing, Employment Information shall not
include information that the Employee can demonstrate (i) was known to him prior
to the disclosure to him by the Employer, or (ii) was publicly known at the time
of the disclosure or which thereafter became publicly known without fault of the
Employee.

      9. Work-Product. All right, title and interest in and to any work-product
         ------------
which the Employee acquires, compiles, authors, invents, makes or otherwise
generates, in whole or in part, including all works authored and all inventions
made, for use in connection with or arising out of or in relation to his
services under this Agreement, whether or not copyrightable or patentable
(herein collectively "Work-Product"), shall belong exclusively to the Employer.
                      ------------
During and after the Term of this Agreement, the Employee shall execute,
acknowledge, and deliver all documents, including, without limitation, all
instruments of assignment, and perform all acts, which the Employer may
reasonably request to secure its rights hereunder.

      10. Confidentiality; Non-use. During and after the Term, the Employee
          ------------------------
shall not, without first obtaining the written consent of the Employer, divulge
or disclose to anyone outside the Employer, whether by private or public
communication or publication or otherwise, or use except pursuant to this
Agreement, any Employer Information; however, an incidental non-derogatory
disclosure by the Employee of Employer Information (other than trade secret or
Work Product information) after 18 months following the end of the Term will not
breach this provision.

      11. Conflicts of Interest; Conflicting Obligations. The Employee agrees
          ----------------------------------------------
that it is his responsibility to recognize and avoid, and disclose to the
President of the Employer in writing, any situation which might, either directly
or indirectly, adversely affect his judgment in serving the Employer or which
might otherwise involve a conflict between his personal interests and the
interests of the Employer. The Employee represents and warrants to the Employer
that at the date hereof no such situation exists or is contemplated or
anticipated. The Employee agrees not to disclose or use in the course of his
services for the Employer any trade secret, confidential or proprietary
information, or work-product of any party other than the Employer. The Employee
represents and warrants to the Employer that his entry into and performance of
this Agreement do not and will not conflict with any obligation by which he is
or may become bound or any right of a third party to which he is or may become
subject. The Employee will not serve as a Board member of another company unless
he seeks and obtains the Employer's approval prior to making a commitment to do
so.

      12. Non-Solicitation. The Employee agrees that, until one year after the
          ----------------
Term, he will not solicit, induce, attempt to hire, or hire any employee of the
Employer, or assist in such hiring by any other party, or encourage any such
employee to terminate his or her employment with the Employer.

      13. Standard Intellectual Property Agreement. The Employee agrees to
          ----------------------------------------
execute the Employer's standard employee agreement relating to intellectual
property and employment information. To the extent any of the provisions of this
Agreement are in conflict with any of the provisions of such standard agreement,
the provisions of this Agreement will control.

      14. Stock Option as an Inducement. As an inducement to the Employee to
          -----------------------------
enter into this Agreement, the Compensation Committee of the Employer's Board of
Directors has authorized the grant to him, subject to his execution of this
Agreement, of a non-qualified stock option pursuant to the Employer's 2000
Incentive Compensation Program to purchase 10,000 shares of the common stock of
the Employer at an exercise price equal to the closing market price of said
stock on the date of approval by the Compensation Committee. Said option is to
become exercisable in four equal cumulative annual installments commencing
November 2002 and is to expire no later than October 2006. Employee

                                       2

<PAGE>

has received a copy of said Program and of the form of option used by the
Employer. Although the option will have the tax treatment of a non-qualified,
non-incentive option, it will be subject to terms and conditions required for an
incentive stock option, and to the condition that the Employee not be in
material breach of this Agreement. It will be subject to acceleration of
exercisability of 50% of all otherwise non-exercisable installments in the event
the Employee becomes entitled to a severance payment under paragraph 15.

      15. Effect of "Change of Control"; Termination; Severance. The Employer or
          -----------------------------------------------------
Employee may terminate the Term on written notice to the other within 30 days
after a "Change of Control" (as defined in Section 3(b) of the Employer's Change
of Control and Change of Position Payment Plan). The Employee has received a
copy of said Plan. The Employee may also terminate the Term on written notice to
the Employer within 30 days after "Change of Position" (as defined in Section
3(c)(ii) of the Plan)) occurring within twelve months after a Change of Control.
A termination will be effective 30 days after the delivery of the notice. In the
event of a termination by the Employer, the Employee will be entitled to a
severance payment, under Section 4 of the Plan and subject thereto, in the
amount of 100% of the "Base Amount" (as defined in Section 4 of the Plan). In
the event of a termination by the Employee after a Change of Position within
twelve months of a Change of Control, the Employee will be entitled to a
severance payment, under Section 4 of the Plan and subject thereto, in the
amount of 75% of said Base Amount. The provisions of this paragraph 14 supersede
any prior agreement between the Employer and the Employee relating to any
severance, termination or change of control arrangement or payment.

      16. Termination. The Employer will have the right to terminate the Term
          -----------
for cause. However, in the event the Employee's employment is terminated by the
Employer without cause, the Employee will be entitled to receive his salary
payments through the end of the Term, less the compensation earned and
consideration received by the Employee from any subsequent employment or for
otherwise providing services. However, the Employee will not have an affirmative
duty to seek employment not consistent with his experience (including prior
levels of responsibility) and expertise. "Cause" shall include material breach
                                          -----
of this Agreement not cured within 10 days, breach of fiduciary duty, gross
insubordination, willful neglect of duties, habitual unreliability, personal
conduct in material violation of the Employer's policies or universally accepted
good business practices, and other matters of comparable severity to any of the
above.

      17. Governing Law; Etc. This Agreement is governed by the laws of
          ------------------
Connecticut. It represents the entire agreement of the parties and it can not be
changed except by a writing signed by the President of the Employer and the
Employee. All notices by the Employee to the Employer under this Agreement shall
be delivered to the President of the Employer.

      IN WITNESS WHEREOF, the parties have signed and delivered this Employment
Agreement, effective as of the Effective Date.

                                          MOORE MEDICAL CORP.

         /s/ Jon Garrity            by       /s/ Linda M. Autore
      ------------------------            --------------------------
             JON GARRITY                  Linda M. Autore, President

      State of Connecticut
      County of Middlesex

      I certify that I know or have sufficient evidence that Jon Garrity is the
person who appeared before me, and that said person acknowledged that he signed
this instrument and acknowledged it to be his free and voluntary act.

      Dated: November 13, 2001                /s/ Bonzena Samsel
                                    --------------------------------------
                                    Notary Public for the State of Connecticut
                                    My commission expires May 31, 2003

                                       3<PAGE>

                                                                 Exhibit 10.1.10

                        FOURTH AMENDMENT AND FIRST WAIVER

          FOURTH AMENDMENT AND FIRST WAIVER, dated as of February 8, 2002 (this
"Amendment"), to and under the Amended and Restated Credit and Guarantee
 ---------
Agreement, dated as of July 27, 2000 (as heretofore amended, supplemented or
otherwise modified, 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, The Bank of Nova Scotia, as 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, Lehman Commercial Paper Inc., as collateral
monitoring agent, and General Electric Capital Corporation, as documentation
agent.

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

          WHEREAS, Holdings and the Borrowers requested that the Lenders amend,
and agree to waive, certain of the provisions of the Credit Agreement;

          WHEREAS, the Required Lenders authorized the execution and delivery by
the General Administrative Agent of the Fourth Amendment and First Waiver, dated
as of January 10, 2002 (the "Existing Fourth Amendment"), to and under the
                             -------------------------
Credit Agreement;

          WHEREAS, the Existing Fourth Amendment has not become effective in
accordance with its terms; and

          WHEREAS, the parties hereto wish to modify the Existing Fourth
Amendment as more fully set forth below;

          NOW, THEREFORE, in consideration of the premises and the material
covenants herein contained, the parties hereto hereby agree that the Existing
Fourth Amendment is hereby replaced in its entirety as follows:

          1. Defined Terms. Terms used herein and defined in the Credit
             -------------
Agreement are used herein as therein defined.

          2. Waivers of Events of Default. The Lenders hereby waive the Defaults
             ----------------------------
and Events of Default arising by reason of (a) the failure of Holdings and the
Borrowers to comply with the provisions of Sections 11.1(a), (c) and (d) of the
Credit Agreement for any period prior to the Amendment Effective Date (as
defined below), (b) any representation and warranty made by any Borrower, in
connection with any extension of credit under the Credit Agreement between
September 30, 2001 and the Amendment Effective Date, to the effect that no
Default or Event of Default had occurred by reason of the failure of Holdings
and the Borrowers to comply with the provisions of Sections 11.1(a), (c) and (d)
of the Credit Agreement or (c) any failure of Holdings or any Borrower to give
notice under the Credit Agreement of the failure of Holdings

<PAGE>

                                                                               2

and the Borrowers to comply with the provisions of Sections 11.1(a), (c) and (d)
of the Credit Agreement.

          3. Waivers of Financial Condition Covenants. The Lenders hereby waive
             ----------------------------------------
from the Amendment Effective Date until December 31, 2002 (the "Waiver Period")
                                                                -------------
compliance by the Borrowers with the provisions of Sections 11.1(a), (c) and (d)
of the Credit Agreement for the periods ending at any time during the Waiver
Period.

          4. Amendment to Section 1.1 of the Credit Agreement (Defined Terms).
             ----------------------------------------------------------------
Section 1.1 of the Credit Agreement is hereby amended as follows:

          (a) the definition of "Asset Sale" is hereby amended to read in its
                                 ----------
     entirety as follows:

               ""Asset Sale": any Disposition of Property or series of related
                 ----------
          Dispositions of Property (excluding any such Disposition permitted by
          Section 11.5 (other than clauses (e), (f), (i), (k) and (l)(ii)
          thereof)) which yields net proceeds to Holdings or any of its
          Subsidiaries (valued at the initial principal amount thereof in the
          case of non-cash proceeds consisting of notes or other debt securities
          and valued at fair market value in the case of other non-cash
          proceeds)."

          (b) the definition of "Borrowing Base" is hereby amended by deleting
                                 --------------
     in its entirety the proviso in the first sentence thereof and substituting
     in lieu thereof the following:

          "; provided, that (A) not more than 50% of the Borrowing Base of
             --------
          either Borrower may be attributable to Eligible Inventory and (B) not
          more than $1,000,000 of the Borrowing Base of the U.S. Borrower may be
          attributable to Mexican Inventory until (notwithstanding anything to
          the contrary contained in the definition of "Eligible Inventory" or
          "Mexican Inventory") such time as the Required Lenders shall have
          determined in their sole discretion that the General Administrative
          Agent has a perfected first priority Lien (or substantial equivalent
          thereof under applicable local law) on such Inventory pursuant to the
          Security Documents at which time the Mexican Inventory shall be
          included in Borrowing Base in an amount and with such advance rates as
          may be agreed upon by the Borrowers and the Required Lenders";

          (c) paragraph (b) of the definition of "Eligible Inventory" is hereby
                                                   -----------------
     amended to read in its entirety as follows:

               "(b)(x) Inventory (other than Mexican Inventory, subject to the
          provisions of the definition of "Borrowing Base" in this Section 1.1)
          as to which an Administrative Agent does not have pursuant to the
          Security Documents a perfected first priority security interest or, in
          the case of any Inventory located outside the United States, the
          substantial equivalent thereof under applicable local law (it being
          understood that, to the extent any Inventory is located outside the
          United States or Canada, the determination of whether or not an
          Administrative

<PAGE>

                                                                               3

          Agent has such a perfected first priority security, or substantial
          equivalent thereof, in such Inventory shall be made by the Required
          Lenders in their sole discretion) or (y) Inventory as to which such
          Borrower or a Subsidiary thereof does not have good and marketable
          title, free and clear of any and all Liens (other than inchoate
          warehouseman's or similar Liens and Liens created pursuant to the
          Security Documents but including the rights of a purchaser that has
          made progress payments and the rights of a surety that has issued a
          bond to assure such Borrower's performance with respect to that
          Inventory);"

          (d) the definition of "Consolidated EBITDA" is hereby amended by (i)
                                 -------------------
     deleting "and" immediately prior to clause (m) thereof and substituting in
     lieu thereof a comma and (ii) adding immediately after clause (m) thereof
     "and (n) incremental costs incurred by Holdings and its Subsidiaries
     pursuant to the Fourth Amendment (including the fees and expenses incurred
     pursuant to the letter agreement delivered pursuant to Section 36(f) of the
     Fourth Amendment and including the fees and expenses of
     PricewaterhouseCoopers LLP, Simpson Thacher & Bartlett and any other
     advisors to the Lenders),"

          (e) the definition of "Loan Documents" is hereby amended to read in
     its entirety as follows:

               ""Loan Documents": this Agreement, the Security Documents, the
                 --------------
          Applications, the Notes, the Acceptances, the Acceptance Notes, the
          Warrant Agreement, the Warrants issued under the Warrant Agreement
          and the Registration Rights Agreement.";

          (f) the definition of "Net Cash Proceeds" is hereby amended by adding
     at the end of clause (a) thereof immediately prior to "and, (b)" the
     following: ", but in the case of proceeds from Asset Sales only to the
     extent the amount of such proceeds exceeds (i) U.S.$50,000 for any
     individual Disposition or (ii) U.S.$100,000 for all Dispositions
     consummated on or after January 10, 2002";

          (g) the definition of "Swing Line Lender" is hereby amended by
     inserting at the end thereof immediately prior to the period the following:

               "provided, however, that during the Fourth Amendment Waiver
                --------  -------
          Period the term "Swing Line Lender" shall mean Lehman Commercial Paper
          Inc., in its capacity as the lender of Swing Line Loans"; and

          (h) the following new defined terms are hereby inserted in Section 1.1
     in their correct alphabetical order:

               ""Cash Management Losses": all reasonable and customary losses,
                 ---- -----------------
          damages, costs and expenses which the General Administrative Agent,
          the Canadian Administrative Agent, any Lender or any affiliate of any
          Lender may suffer or incur, including without limitation, all
          obligations of any Loan Party on account of any overdrafts, returned
          items and canceled credits, as a result of the

<PAGE>

                                                                               4

          operation or the maintenance of any bank account by such
          Administrative Agent, such Lender or such affiliate, or otherwise in
          connection with cash management arrangements established by or on
          behalf of any Loan Party, in any case solely to the extent such
          accounts or arrangements are subject of a Lien for the benefit of the
          Lenders or are otherwise established for the benefit of the Lenders.

               "Fourth Amendment": the Fourth Amendment and First Waiver, dated
                ----------------
          as of February 8, 2002, to and under this Agreement.

               "Fourth Amendment Effective Date": the Amendment Effective Date
                -------------------------------
          under and as defined in the Fourth Amendment.

               "Fourth Amendment Waiver Period": the period commencing on the
                ------------------------------
          Fourth Amendment Effective Date through and including December 31,
          2002.

               "Irish Inventory": Inventory of the Subsidiaries of the Borrowers
                ---------------
          organized under the laws of Ireland which satisfies all requirements
          of the definition of Eligible Inventory in this Section 1.1 except the
          requirements set forth in subsections (b) and (h) of such definition.

               "Lockbox Accounts": as defined in Section 10.14.
                ----------------

               "Registration Rights Agreement": the Registration Rights
                -----------------------------
          Agreement, substantially in the form of Annex D to the Fourth
          Amendment, to be entered into pursuant to the Fourth Amendment.

               "U.S. Concentration Account": as defined in Section 10.14.
                --------------------------

               "Warrant Agreement": the Warrant Agreement, substantially in the
                -----------------
          form of Annex E to the Fourth Amendment, to be entered into pursuant
          to the Fourth Amendment.

               "Warrants": as defined in the Warrant Agreement.".
                --------

          5. Amendments to Section 2.4 of the Credit Agreement (U.S. Revolving
             -----------------------------------------------------------------
Credit Commitments). Section 2.4(b) of the Credit Agreement is hereby
------------------ amended by adding at the end thereof immediately prior to the
period therein: "provided that at any time when the Consolidated Total Leverage
                 --------
Ratio is greater than 4.00 to 1.00 as determined on any Adjustment Date
and in effect thereafter pursuant to the Pricing Grid, no U.S. Revolving Credit
Loan may be made as a Eurodollar Loan".

          6. Amendment to Section 2.6 of the Credit Agreement (Swing Line
             ------------------------------------------------------------
Commitment). Section 2.6(a) of the Credit Agreement is hereby amended by
----------
inserting at the end of the first sentence thereof the following:

<PAGE>

                                                                               5

          "Notwithstanding anything to the contrary contained in the preceding
     sentence, during the Fourth Amendment Waiver Period, Lehman Commercial
     Paper Inc. shall be the only Swing Line Lender."

          7. Amendment to Section 2.7(a) of the Credit Agreement (Procedure for
             -------------------------------------------------------------------
Swing Line Borrowing; Refunding of Swing Line Loans). Section 2.7(a) of the
--------------------------------------------------- Credit Agreement is hereby
amended by (a) inserting immediately after the phrase "1:30 P.M., New York City
time" in the first sentence thereof the following: "(or, during the Fourth
Amendment Waiver Period, 3:00 P.M., New York City time) and (b) inserting
immediately after the phrase "3:00 P.M., New York City time" in the third
sentence thereof the following: "(or, during the Fourth Amendment Waiver Period,
4:30 P.M., New York City time)".

          8. Amendment to Section 5.1(b) of the Credit Agreement (Canadian
             -------------------------------------------------------------
Revolving Commitments). Section 5.1(b) of the Credit Agreement is hereby
--------------------- amended by adding at the end thereof immediately prior to
the period therein: "provided that at any time when the Consolidated Total
                     --------
Leverage Ratio is greater than 4.00 to 1.00 as determined on any
Adjustment Date and in effect thereafter pursuant to the Pricing Grid, no
Canadian Revolving Credit Loan may be made as a Eurodollar Loan".

          9. Amendment to Section 5.14 of the Credit Agreement (Canadian Swing
             -----------------------------------------------------------------
Line Commitment). Section 5.14(a) of the Credit Agreement is hereby amended by
---------------
(a) deleting the "and" immediately prior to clause (ii) in the proviso thereof
and substituting in lieu thereof a comma and (b) adding at the end thereof
immediately before the period: "and (iii) on and after the Fourth Amendment
Effective Date, the Canadian Borrower shall not request, and the Canadian Swing
Line Lender shall not make, any Canadian Swing Line Loan".

          10. Amendment to Section 6.1 of the Credit Agreement (L/C
              -----------------------------------------------------
Commitments). Section 6.1 of the Credit Agreement is hereby amended as follows:
-----------

          (a) Section 6.1(a) of the Credit Agreement is hereby amended by adding
     at the end of the second sentence thereof immediately before the period the
     following: ", provided, further, that, notwithstanding anything to the
                   --------  -------
     contrary contained in this Section 6.1(a), with respect to any U.S. Letter
     of Credit issued or extended at any time on or after the Fourth Amendment
     Effective Date, such U.S. Letter of Credit shall expire no later than
     December 31, 2002"; and

          (b) Section 6.1(b) of the Credit Agreement is hereby amended by adding
     at the end of the second sentence thereof immediately before the period the
     following: ", provided, further, that, notwithstanding anything to the
                   --------  -------
     contrary contained in this Section 6.1(b), with respect to any Canadian
     Letter of Credit issued or extended at any time on or after the Fourth
     Amendment Effective Date,, such Canadian Letter of Credit shall expire no
     later than December 31, 2002".

          11. Amendment to Section 7.1 of the Credit Agreement (Interest Rates
              ----------------------------------------------------------------
and Payment Dates). Section 7.1(e) of the Credit Agreement is hereby
-----------------
amended to delete such Section in its entirety and substituting in lieu thereof
the following:

<PAGE>

                                                                               6

          "(e) If all or a portion of (i) the principal amount of any Loan, (ii)
     any interest payable thereon or (iii) any fee or other amount (which is not
     being disputed in good faith by Holdings or its Subsidiaries) payable
     hereunder or under any other agreement among the Borrowers, any of the
     Lenders and the General Administrative Agent shall not be paid when due
     (whether at stated maturity, by acceleration or otherwise), for so long as
     such Event of Default is continuing (i) the principal amount of all Loans
     shall to the extent legally permitted bear interest at a rate per annum
     equal to the rate that would otherwise be applicable thereto pursuant to
     the foregoing provisions of this subsection plus 2% and (ii) the fees in
     respect of Letters of Credit payable pursuant to Sections 6.3(a) and (b)
     shall be increased by 2%.".

          12. Amendment to Section 7.2 of the Credit Agreement (Conversion and
              ----------------------------------------------------------------
Continuation Option With Respect to Loans). Section 7.2 of the Credit
-----------------------------------------
Agreement is hereby amended as follows:

          (a) Section 7.2(a) is hereby amended by:

               (i) inserting immediately before the phrase "when any Default or
          Event of Default" in clause (i) in the proviso in the last sentence
          thereof "(x)"; and

               (ii) adding at the end of clause (i) in the proviso in the last
          sentence thereof: "or (y) at any time when the Consolidated Total
          Leverage Ratio is greater than 4.00 to 1.00 as determined on any
          Adjustment Date and in effect thereafter pursuant to the Pricing
          Grid";

          (b) Section 7.2(b) is hereby amended by:

               (i) inserting immediately before the phrase "when any Default or
          Event of Default" in clause (i) in the proviso in the last sentence
          thereof "(x)"; and

               (ii) adding at the end of clause (i) in the proviso in the last
          sentence thereof: "or (y) at any time when the Consolidated Total
          Leverage Ratio is greater than 4.00 to 1.00 as determined on any
          Adjustment Date and in effect thereafter pursuant to the Pricing
          Grid"; and

          (c) Section 7.2(c) is hereby amended by:

               (i) deleting "or" immediately before the reference to "(iii)" in
      the proviso thereof and substituting in lieu thereof a comma; and

               (ii) adding at the end of clause (iii) in the proviso thereof
      immediately prior to the comma therein: "or (iv) at any time when the
      Consolidated Total Leverage Ratio is greater than 4.00 to 1.00 as
      determined on any Adjustment Date and in effect thereafter pursuant to the
      Pricing Grid".

<PAGE>

                                                                               7

          13. Amendment to Section 7.5 of the Credit Agreement (Mandatory
              -----------------------------------------------------------
Prepayments; Application of Prepayments). Section 7.5 of the Credit
---------------------------------------
Agreement is hereby amended as follows:

          (a) Section 7.5(c) of the Credit Agreement is hereby amended by
     deleting such Section in its entirety and substituting in lieu thereof
     the following:

               "(c) Unless the Required Prepayment Lenders shall in their sole
          discretion otherwise agree, if on any date Holdings or any of its
          Subsidiaries shall receive Net Cash Proceeds from any Asset Sale then
          within five Business Days after receipt by the Holdings or such
          Subsidiary of such Net Cash Proceeds, the Term Loans shall be prepaid
          in an amount equal to the amount of such Net Cash Proceeds, as set
          forth in Section 7.5(f). The provisions of this Section 7.5(c) do not
          constitute a consent to the consummation of any Disposition not
          permitted by Section 11.5";

          (b) Section 7.5(f) of the Credit Agreement is hereby amended by
     adding immediately after "Section 7.4(a)" therein ", Section 7.5(c)";
     and

          (c) Section 7.5 of the Credit Agreement is hereby amended by
     inserting a new Section 7.5(j) as follows:

               "(j) On each Business Day, the U.S. Borrower shall, without
          notice or demand, immediately prepay the Loans in an aggregate
          principal amount equal to the amount of funds on deposit in the
          U.S. Concentration Account first, to the prepayment of the Swing
                                     -----
          Line Loans (without a corresponding permanent reduction of the
          Swing Line Commitment) and second, to the prepayment of the U.S.
                                     ------
          Revolving Credit Loans (without a corresponding permanent
          reduction of the U.S. Revolving Credit Commitments).".

          14. Amendment to Section 7.6 of the Credit Agreement (Certain
              ---------------------------------------------------------
Fees). Section 7.6 of the Credit Agreement is hereby amended by adding at
----
the end thereof immediately after paragraph (d) thereof the following:

               "(e) (i) Upon the occurrence of an Event of Default arising out
          of each violation of (A) any covenant set forth in Section 11.1(e) or
          (g), (B) the terms of the letter agreement delivered pursuant to
          Section 36(f) of the Fourth Amendment or (C) any covenant set forth in
          Section 11.1(f), Holdings shall pay, within 5 days after the
          occurrence of such Event of Default, to the General Administrative
          Agent, for the benefit of the Lenders, a one-time fee for each such
          violation in an amount equal to 0.25% of the sum of each Lender's
          Revolving Credit Commitments and Term Loans then outstanding; provided
                                                                        --------
          that only one such fee shall be charged for each fiscal quarter for
          all defaults under each of the foregoing clauses (A), (B) and (C)
          (i.e., the maximum aggregate amount of all such fees in any fiscal
          quarter shall not exceed 0.75% of the sum of the Revolving Credit
          Commitments and the Term Loans then outstanding).".

<PAGE>

                                                                               8

          15. Amendment to Section 8.2 of the Credit Agreement (No Change).
              -----------------------------------------------------------
Section 8.2 of the Credit Agreement is hereby amended by adding immediately
prior to the period at the end thereof the following: ", provided that on
                                                         --------
and after the Fourth Amendment Effective Date, the foregoing representation
and warranty shall be deemed amended to substitute September 30, 2001 in
lieu of December 31, 1999 so long as no fact or other information shall
have proven that any financial statement delivered prior to the Fourth
Amendment Effective Date pursuant to Section 10.1 shall not have been
correct and accurate in all material respects or shall not have presented
fairly in all material respects the consolidated financial condition of
Holdings and it Subsidiaries as at the date reflected in such financial
statement".

          16. Amendment to Section 10.1 of the Credit Agreement (Financial
              ------------------------------------------------------------
Statements). Section 10.1 of the Credit Agreement is hereby amended by (a)
----------
deleting "and" at the end of paragraph (b) thereof, (b) adding at the end
of paragraph (c) immediately after the semicolon therein "and" and (c)
adding immediately after paragraph (c) thereof the following new paragraph
(d):

               "(d) as soon as available, but in any event not later than 15
          Business Days after the end of each month occurring during the fiscal
          year of Holdings, the unaudited consolidating balance sheets of
          Holdings and its Subsidiaries as at the end of such month, and related
          unaudited consolidating statements of income and of cash flows for
          such month and the portion of the fiscal year of Holdings through the
          end of such month (including without limitation, management's
          discussion and analysis thereof), setting forth in each case in
          comparative form the figures set forth in the budget delivered to the
          Lenders and the General Administrative Agent pursuant to the Fourth
          Amendment, all of the foregoing in form and detail reasonably
          satisfactory to the General Administrative Agent;".

          17. Amendment to Section 10.2 of the Credit Agreement
              -------------------------------------------------
(Certificate; Other Information). Section 10.2 of the Credit Agreement is
 ------------------------------
hereby amended by (a) deleting the reference to "clause (f)" in the
introductory clause thereof and substituting in lieu thereof a reference to
"clause (j)", (b) adding immediately at the end of the introductory clause
thereof ", or, in the case of clause (h), to the General Administrative
Agent, (c) relettering clause (g) as clause (j), (d) deleting "and" at the
end of clause (f) thereof and (e) adding immediately after clause (f)
thereof the following:

               "(g) as soon as practicable after the end of each week (each, a
          "Reporting Week") (and in any event on or before the seventh Business
           --------------
          Day following the end of such Reporting Week, during the eight-week
          period after the Fourth Amendment Effective Date, and after the end of
          such eight-week period, on or before the last Business Day of the week
          immediately following such Reporting Week), a thirteen-week cash flow
          forecast for Holdings and its Subsidiaries, together with a comparison
          of the actual results for such Reporting Week against the prior
          forecasts, which shall (w) include the total of checks outstanding,
          (x) indicate the amount available under the Revolving Credit Facility
          and the Canadian Revolving Credit Facility, (y) indicate whether there
          is a forecasted

<PAGE>

                                                                               9

          cash surplus or deficiency and (z) in all respects provide detail
          reasonably satisfactory to the General Administrative Agent;

               (h) on each Business Day, a report of the amount of available
          cash on hand of Holdings and its Subsidiaries at the end of the
          immediately preceding Business Day;

               (i) as soon as available, but in any event not later than the
          seventh Business Day of each month occurring during the fiscal year of
          Holdings, a monthly sales flash report, together with a comparison
          setting forth actual sales results against projected sales results for
          the prior four, six and eight-week periods, in form and detail
          reasonably satisfactory to the General Administrative Agent; and".

          18. Amendment to Section 10.3 of the Credit Agreement (Collateral
              -------------------------------------------------------------
Reports). Section 10.3 of the Credit Agreement is hereby amended as
-------
follows:

          (a) by deleting paragraph (a) thereof and substituting in lieu
     thereof the following:

               "(a) to the Collateral Monitoring Agent on or before the
          last Business Day of each week, a Borrowing Base Certificate of
          such Borrower for the immediately preceding week accompanied by
          supporting detail and documentation as shall be requested by, and
          in form and detail reasonably satisfactory to, the Collateral
          Monitoring Agent in its reasonable discretion, including, without
          limitation, an aging of accounts receivable and accounts payable,
          a flash report of Eligible Inventory by customer and location and
          an update of accounts receivable balances;"; and

          (b) by (i) deleting "and" at the end of paragraph (c) thereof,
     (ii) deleting the period at the end of paragraph (d) thereof and
     substituting in lieu thereof "; and", and (iii) adding at the end
     thereof immediately after paragraph (d) the following:

               "(e) to the Collateral Monitoring Agent no later than five
          days after the end of each fiscal month, an updated report of
          values of Inventory, in form and detail reasonably satisfactory
          to the Collateral Monitoring Agent.".

          19. Amendment to Section 10.7 of the Credit Agreement (Inspection
              -------------------------------------------------------------
of Property; Books and Records; Discussion). Section 10.7 of the Credit
------------------------------------------
Agreement is hereby amended by (a) deleting "and" immediately prior to
clause (b) thereof and substituting in lieu thereof a comma and (b) adding
at the end thereof immediately prior to the period therein ", (c) permit,
on reasonable advance notice to Holdings and the Borrowers,
PricewaterhouseCoopers LLP (or such other advisor as the Lenders may
select) to conduct periodic reviews of the Borrowing Base, at the request
and direction of the General Administrative Agent, which shall be at the
expense of Holdings and the Borrowers and (d) permit, on reasonable advance
notice to Holdings and the Borrowers, the General Administrative Agent to
conduct periodic reviews of

<PAGE>

                                                                              10

the working capital of Holdings and the Borrowers, at the request and
direction of the Lenders, which shall be at the expense of Holdings and the
Borrowers".

          20. Amendment to Section 10 of the Credit Agreement (Affirmative
              ------------------------------------------------------------
Covenants). Section 10 of the Credit Agreement is hereby amended by adding at
---------
the end thereof immediately after Section 10.12 thereof the following:

               "10.13 Additional Delivery of Collateral. On and after the
                      ---------------------------------
          Fourth\ Amendment Effective Date, use their reasonable best efforts to
          provide the General Administrative Agent with a perfected first
          priority Lien (or substantial equivalent thereof under applicable
          local law) on all Inventory and real property owned by (a) the
          Borrowers and (b)(i) unless the Borrowers shall have determined in
          good faith that it would result in adverse tax consequences to the
          Borrowers or any Subsidiary thereof, of their Subsidiaries and located
          in Ireland and (ii) unless the Borrowers and the General
          Administrative Agent shall have determined in good faith that it would
          result in adverse financial consequences to the Borrowers or any
          Subsidiary thereof, of their Subsidiaries and located in Mexico,
          provided that the Borrowers shall not be obligated to provide such
          --------
          Lien until such time as the Required Lenders and the Borrowers shall
          have agreed upon the amount of Mexican Inventory to be included in the
          Borrowing Base, the advance rates applicable thereto and any related
          amendment to the definition of Borrowing Base.

               10.14 Cash Management. Within ten Business Days after the Fourth
                     ----------------
          Amendment Effective Date, (a) establish, pursuant to documentation
          reasonably satisfactory to the General Administrative Agent, a system
          of lockbox accounts in the United States (the "Lockbox Accounts") and
                                                        ------------------
          concentration accounts in the United States (the "U.S. Concentration
                                                            ------------------
          Account") and Canada with Comerica Bank, The Bank of Nova Scotia or
          -------
          any other bank or financial institution reasonably acceptable to the
          General Administrative Agent (the "Deposit Banks") under the control
                                             -------------
          of the General Administrative Agent or the Canadian Administrative
          Agent, as the case may be, into which all Accounts of the Borrowers
          and their Subsidiaries shall be paid (including the proceeds of any
          sale of Accounts or other similar transaction with respect to
          Accounts, but excluding proceeds aggregating the equivalent of
          U.S.$3,000,000 on a daily basis (the "Excluded Irish Amounts") in
                                                ----------------------
          respect of Accounts of Subsidiaries of the Borrowers organized under
          the laws of Ireland which shall be maintained in deposit accounts with
          banks located in Ireland (the "Irish Deposit Accounts")), (b)
                                         ----------------------
          instruct, pursuant to instructions reasonably satisfactory to the
          General Administrative Agent, all debtors in respect of Accounts of
          Holdings and its Subsidiaries to make payment of all amounts payable
          in respect of such Accounts directly into the Lockbox Accounts, (c)
          maintain all operating accounts and deposit accounts with the Deposit
          Banks under the control of the General Administrative Agent, except
          for the Irish Deposit Accounts, and (d) provide the General
          Administrative Agent with control of, and a perfected security
          interest in (or the substantial equivalent thereof under applicable
          local law in any jurisdiction outside the United States), all such
          lockbox, concentration, operating and deposit accounts."

<PAGE>

                                                                              11

          21. Amendment to Section 11.1 of the Credit Agreement (Financial
              ------------------------------------------------------------
Condition Covenants). Section 11.1 of the Credit Agreement is hereby
-------------------
amended by adding at the end thereof immediately after paragraph (d)
thereof the following:

               "(e) Minimum Cumulative Consolidated EBITDA. Permit the
                    ---------------------------------------
          cumulative Consolidated EBITDA of Holdings and its Subsidiaries for
          the portion of any fiscal quarter ending on any date set forth on
          Schedule 11.1(e) to be less than the amount set forth opposite such
          date on Schedule 11.1(e); provided that, for purposes of determining
          compliance with the foregoing covenant, if the cumulative Consolidated
          EBITDA for any full fiscal quarter exceeds the amount set forth on
          Schedule 11.1(e) for such fiscal quarter, 50% of such excess may be
          carried over and added to the cumulative Consolidated EBITDA for the
          immediately following full fiscal quarter, to the extent that the
          cumulative Consolidated EBITDA for such following fiscal quarter would
          be less than the required amount set forth above for such fiscal
          quarter.

               (f) Maximum Outstanding Extensions of Credit. (i) Permit the sum
                   -----------------------------------------
          of the Aggregate U.S. Revolving Extensions of Credit and the Aggregate
          Canadian Revolving Extensions of Credit (such sum, the "Total
                                                                  -----
          Revolving Extensions of Credit") on any date set forth on Schedule
          ------------------------------
          11.1(f) to be greater than the amount set forth opposite such date on
          Schedule 11.1(f).

               (ii) On any day (other than the last day) of any month set forth
          on Schedule 11.1(f), permit the Total Revolving Extensions of Credit
          to exceed the least of (A) the Borrowing Base in effect on such day,
          (B) $95,280,000 and (C) 120% of the amount set forth on Schedule
          11.1(f) for the last day of such month.

               (iii) Notwithstanding the limitations set forth in clauses (i)
          and (ii) above, the Total Revolving Extensions of Credit may, on any
          day from and including September 30, 2002 to and including December
          31, 2002, exceed the applicable limitations set forth above in clauses
          (i) and (ii) so long as (A) no Event of Default has occurred during
          the period from the Fourth Amendment Effective Date through and
          including such day, (B) the Total Revolving Extensions of Credit on
          such day does not exceed the lesser of (x) the Borrowing Base in
          effect on such day and (y) $100,000,000 and (C) the amount by which
          the Total Revolving Extensions of Credit exceeds the applicable
          limitations set forth in clauses (i) and (ii) above is less than or
          equal to the aggregate amount of scheduled principal payments made in
          respect of the Term Loans on or after September 30, 2002 and on or
          prior to such day.

               (g) Minimum Availability Test. As at the last day of each month
                   -------------------------
          during the Fourth Amendment Waiver Period, permit the difference
          between (i) the Borrowing Base (which shall, for purposes of this
          Section 11.1(g) only, also include Irish Inventory at the applicable
          Advance Rate for Eligible Inventory) in effect on such day, minus (ii)
                                                                      -----
          the Total Revolving Extensions of Credit on such day minus (iii) the
                                                               -----
          aggregate amount on such day of accounts payable of Holdings and its
          Subsidiaries that are more than 60 days past due, to be less than
          $20,000,000.".

<PAGE>

                                                                              12

          22. Amendment to Section 11.2 of the Credit Agreement (Limitation
              -------------------------------------------------------------
on Indebtedness). Section 11.2 of the Credit Agreement is hereby amended by
---------------
adding the following at the end thereof:

          "Notwithstanding the foregoing provisions of this Section 11.2,
     from and after January 10, 2002, Holdings will not, and will not
     permit any Subsidiary to, incur any Indebtedness, except (x)
     Indebtedness permitted pursuant to paragraphs (a), (b), (c), (d), (e),
     (f), (h), (i), (k) and (m) above in this Section 11.2 and (y)
     Indebtedness that is subordinated to the Indebtedness under this
     Agreement in a manner, and pursuant to documentation, reasonably
     satisfactory to the General Administrative Agent, provided that the
                                                       --------
     Net Cash Proceeds of the incurrence of any such Indebtedness shall be
     applied in accordance with Section 7.5(b) without giving effect to the
     proviso therein (it being understood that this paragraph prohibits
     only the incurrence of Indebtedness after January 10, 2002 and that
     Indebtedness outstanding on January 10, 2002 that was permitted to be
     incurred by this Section 11.2 as in effect before January 10, 2002 may
     continue to remain outstanding to the extent permitted by paragraphs
     (a) through (q) of this Section 11.2)."

          23. Amendment to Section 11.5 of the Credit Agreement (Limitation
              -------------------------------------------------------------
on Disposition of Property). Section 11.5 of the Credit Agreement is hereby
--------------------------
amended by:

          (a) adding at the end of clause (e) thereof immediately
     "provided, further, to the extent that any such Disposition
      --------  -------
     consummated pursuant to this clause (e) is a Disposition of Accounts,
     the proceeds of any such Disposition shall be paid by the applicable
     purchaser directly into a Lockbox Account;"; and

          (b) deleting clause (g) in its entirety and substituting in lieu
     thereof following new clause (g):

               "(g) the sale or discount, in each case without recourse, of
          Accounts arising in the ordinary course of business, but only in
          connection with the compromise or collection thereof; provided
                                                                --------
          that the proceeds of any such sale shall be paid by the
          applicable purchaser directly into a Lockbox Account;".

          24. Amendment to Section 11.7 of the Credit Agreement (Capital
              ----------------------------------------------------------
Expenditures). Section 11.7 of the Credit Agreement is hereby amended by
------------
adding at the end thereof the following:

          "From and after the Fourth Amendment Effective Date, the
          foregoing covenant for the 2001 fiscal year of Holdings shall not
          be applicable. Notwithstanding anything to the contrary contained
          in this Section 11.7, during the period from October 1, 2001
          though and including December 31, 2002, Holdings shall not, and
          shall not permit any of its Subsidiaries to, directly or
          indirectly, make or commit to make any Capital Expenditure,
          except Capital Expenditures of Holdings and its Subsidiaries in
          the ordinary course of business not exceeding an aggregate amount
          during any fiscal quarter of Holdings the amount set forth below
          opposite such fiscal quarter:

<PAGE>

                                                                              13

                Fiscal Quarter                            Amount
                --------------                          ----------

                   FQ4 2001                             $  750,000
                   FQ1 2002                             $1,050,000
                   FQ2 2002                             $2,000,000
                   FQ3 2002                             $2,000,000
                   FQ4 2002                     Any amount not expended in FQ2
                                                     2002 and FQ3 2002

          ; provided that with respect to any asset acquired pursuant to
            --------
          the Capital Expenditures permitted under this Section 11.7 which
          (x) has a purchase price in excess of $250,000 and is not in the
          nature of maintenance Capital Expenditures and (y) is located
          within the United States of America or Canada, Holdings or the
          applicable Borrower or Subsidiary shall comply with Section 10.11
          (without regard to the requirement of certain minimum values with
          respect to real property set forth therein) to provide the
          General Administrative Agent, for the benefit of the Lenders, a
          perfected first priority Lien on such asset.".

          25. Amendment to Section 11.8 of the Credit Agreement (Limitation
              -------------------------------------------------------------
on Investments). Section 11.8 of the Credit Agreement is hereby amended as
--------------
follows:

          (a) Section 11.8(f) is hereby amended by adding at the end
     thereof immediately prior to the semicolon therein "consummated before
     January 10, 2002"; and

          (b) Section 11.8(s) is hereby amended by adding at the end
     thereof immediately prior to the period therein the following: ",
     provided that no additional Investments shall be permitted pursuant to
     --------
     this clause (s) on and after January 10, 2002".

          26. Amendment to Section 11.9 of the Credit Agreement (Limitation
              -------------------------------------------------------------
on Optional Prepayments and Modifications of Debt Instruments, etc.).
-------------------------------------------------------------------
Section 11.9 of the Credit Agreement is hereby amended by adding at the end
of the last sentence thereof the following: ", but only to the extent any such
redemption was consummated prior to January 10, 2002".

          27. Amendment to Section 11.11 of the Credit Agreement
              --------------------------------------------------
(Limitation on Sale and Leasebacks). Section 11.11 of the Credit Agreement
----------------------------------
is hereby amended by deleting such Section in its entirety and substituting
in lieu thereof the following:

          "11.11. Limitation on Sales and Leasebacks. Enter into any
                  ----------------------------------
     arrangement with any Person providing for the leasing by Holdings,
     either Borrower or any Subsidiary of real or personal property which
     has been or is to be sold or transferred by Holdings, such Borrower or
     such Subsidiary to such Person or to any other Person to whom funds
     have been or are to be advanced by such Person on the security of such
     property or rental obligations of Holdings, such Borrower or such
     Subsidiary (a "Sale/Leaseback Transaction"), without the prior written
                    --------------------------
     consent of the Required Lenders, which consent may be withheld in the
     sole discretion of the Required Lenders.".

<PAGE>

                                                                              14

          28. Amendment to Section 13 of the Credit Agreement (Events of
              ----------------------------------------------------------
Default). Section 13(c) of the Credit Agreement is hereby amended by
-------
deleting the reference to "(i)" at the beginning thereof and adding at the
end thereof immediately prior to the semicolon therein: ", provided,
                                                           --------
however, that with respect to any default in the observance or performance
-------
of any agreement contained in Section 11.1(e), (f) or (g) at the end of any
month during the Fourth Amendment Waiver Period, any Event of Default
arising therefrom shall be deemed permanently waived by the Lenders if (x)
the Lenders in their sole discretion shall not have accelerated the
obligations under this Agreement in accordance with this Section 13, (y)
Holdings shall be in compliance with Section 11.1(e), (f) and (g) at the
end of the fiscal quarter in which such monthly financial covenant
violation occurs and (z) all fees payable pursuant to this Agreement
(including without limitation, such fees payable pursuant to Section
7.6(e)) shall have been paid when due".

          29. Amendment to Section 15.5 of the Credit Agreement (Payment of
              -------------------------------------------------------------
Expenses). Section 15.5 of the Credit Agreement is hereby amended by (a)
--------
relettering clauses (c) and (d) as clauses (d) and (e), respectively, (b)
deleting "all the foregoing in this clause (d)" in clause (d) thereof and
substituting in lieu thereof "all the foregoing in this clause (e)" and (c)
adding immediately after clause (b) thereof the following:

          "(c) to pay and reimburse (i) each advisor retained by the Lenders or
          the Agents all of their reasonable costs and expenses incurred in
          connection with any reviews or analyses reasonably requested by the
          General Administrative Agent or the Required Lenders pursuant to this
          Agreement, including without limitation, the fees and disbursements of
          PricewaterhouseCoopers LLP and Jefferson Wells and (ii) each of
          Comerica Bank, the Bank of Nova Scotia and the General Administrative
          Agent all of their reasonable costs and expenses incurred in
          connection with the preparation, execution, delivery and
          administration of the documentation entered into in connection with
          the establishment and maintenance of the cash management system
          pursuant to Section 10.14, including, without limitation, reasonable
          fees and disbursements of counsel (including the allocated fees and
          disbursements of in-house counsel),".

          30. Amendment to Section 15.18 (Intercreditor Provisions).
              -----------------------------------------------------
Section 15.18 of the Credit Agreement is hereby amended by deleting such
Section in its entirety and substituting in lieu thereof the following:

          "15.18 Intercreditor Provisions. (a) Notwithstanding (i) any
                 ------------------------
     provision hereof or of any other Loan Document and (ii) the priority
     of any Lien on the Collateral, all proceeds received by the Canadian
     Administrative Agent from the Canadian Facility Guarantees or from the
     exercise by the Canadian Administrative Agent of any of its remedies
     under any of the Canadian Security Documents or the Canadian Facility
     Guarantees shall be applied by the Canadian Administrative Agent as
     follows:

               First, to reimburse the Canadian Administrative Agent for
               -----
          all costs and expenses incurred by them in administering the
          Collateral, the Canadian Facility Guarantees and the Canadian
          Security Documents and in enforcing rights thereunder;

<PAGE>

                                                                              15

               Second, to the Canadian Administrative Agent, the Lenders or
               ------
          any affiliate of any Lender to pay all amounts payable in respect
          of Cash Management Losses owing by the Canadian Borrower or any
          Subsidiary thereof, ratably among the Canadian Administrative
          Agent, the Lenders or any affiliate of any Lender according to
          the amounts of such obligations owing to the Canadian
          Administrative Agent, the Lenders or any affiliate of any Lender;

               Third, to the Lenders or, in the case of any Specified Hedge
               -----
          Agreement, any affiliate of any Lender, to pay principal of,
          accrued and unpaid interest on, and other amounts payable
          hereunder with respect to all indebtedness, obligations and
          liabilities of the Canadian Borrower and its Subsidiaries under
          the Loan Documents (including, without limitation, the
          obligations of the Canadian Borrower to cash collateralize
          Canadian L/C Obligations) and all amounts payable in respect of
          any Specified Hedge Agreement of the Canadian Borrower or any of
          its Subsidiaries, but only to the extent that, and only so long
          as, the obligations of the Canadian Borrower under this Agreement
          are secured and guaranteed pursuant to the Canadian Security
          Documents and the Canadian Facility Guarantees, ratably among the
          Lenders according to the amounts of such obligations owing to the
          Lenders or, in the case of any Specified Hedge Agreement, any
          affiliate of any Lender;

               Fourth, after payment in full of all of the amounts
               ------
          described in the foregoing clauses First, Second and Third of
                                             -----  ------     -----
          this paragraph (a), to the Canadian Borrower or the other Loan
          Parties entitled thereto or as otherwise may be required under
          applicable law.

               (b) Notwithstanding (i) any provision hereof or of any other
          Loan Document and (ii) the priority of any Lien on the
          Collateral, all proceeds received by the General Administrative
          Agent from the guarantees contained in the Guarantee and
          Collateral Agreement or from the exercise by the General
          Administrative Agent of any of its remedies under any of the
          Security Documents or the guarantees contained in the Guarantee
          and Collateral Agreement shall be applied by the General
          Administrative Agent as follows:

               First, to reimburse the General Administrative Agent for all
               -----
          costs and expenses incurred by them in administering the
          Collateral and the Security Documents and in enforcing rights
          thereunder;

               Second, to the General Administrative Agent, the Lenders or
               ------
          any affiliate of any Lender to pay all amounts payable in respect
          of Cash Management Losses owing by the U.S. Borrower or any
          Subsidiary thereof, ratably among the General Administrative
          Agent, the Lenders or any affiliate of any Lender according to
          the amounts of such obligations owing to the General
          Administrative Agent, the Lenders or any affiliate of any Lender;

               Third, to the Lenders, or in the case of any Specified Hedge
               -----
          Agreement, any affiliate of any Lender, to pay principal of,
          accrued and unpaid interest on,

<PAGE>

                                                                              16

          and other amounts payable hereunder with respect to all
          indebtedness, obligations and liabilities of the U.S. Borrower
          and the Subsidiary Guarantors under the Loan Documents
          (including, without limitation, the guarantee obligations of the
          U.S. Borrower pursuant to Section 12 and the obligations of the
          U.S. Borrower to cash collateralize U.S. L/C Obligations) and all
          amounts payable in respect of the Borrower Hedge Agreement
          Obligations (as defined in the Guarantee and Collateral
          Agreement), but only to the extent that, and only so long as, the
          Borrower Credit Agreement Obligations (as defined in the
          Guarantee and Collateral Agreement) are secured and guaranteed
          pursuant to the Guarantee and Collateral Agreement, ratably among
          the Lenders according to the amounts of such obligations owing to
          the Lenders or, in the case of any Specified Hedge Agreement, any
          affiliate of any Lender;

               Fourth, after payment in full of all of the amounts
               ------
          described in the foregoing clauses First, Second and Third of
                                             -----  ------     -----
          this paragraph (b), to the U.S. Borrower or the other Loan
          Parties entitled thereto or as otherwise may be required under
          applicable law.".

          31. Amendment to Annex A to the Credit Agreement (Pricing Grid).
              ----------------------------------------------------------
Annex A to the Credit Agreement is hereby amended by deleting such Annex in
its entirety and inserting in lieu thereof Annex A attached hereto, it
being understood and agreed that (i) such amendment shall be deemed to be
effective as of January 10, 2002 and (ii) the Annex A attached hereto shall
be used for all determinations of the Applicable Margin on and after
January 10, 2002.

          32. Additional Schedules to the Credit Agreement. The Credit
              --------------------------------------------
Agreement is hereby amended by adding thereto Schedules 11.1(e) and (f) in
the forms attached hereto as Annexes B and C, respectively.

          33. Indemnification of Cash Management Losses. For avoidance of
              -----------------------------------------
doubt, the Lenders hereby acknowledge and confirm that the indemnification
provisions of Section 14.7 of the Credit Agreement are applicable to and
include any Cash Management Losses that may be owing to either
Administrative Agent.

          34. First Amendment to Guarantee and Collateral Agreement. The
              -----------------------------------------------------
General Administrative Agent is hereby instructed by the Lenders to execute
and deliver an amendment to the Guarantee and Collateral Agreement,
substantially in the form attached hereto as Annex F (the "First Amendment
                                                           ---------------
to the Guarantee and Collateral Agreement").
-----------------------------------------

          35. Amendment to Canadian Facility Guarantees and Canadian
              ------------------------------------------------------
Security Documents. The Canadian Administrative Agent is hereby instructed
------------------
by the Lenders to execute and deliver such amendments to the Canadian
Facility Guarantees and the Canadian Security Documents as the Canadian
Administrative Agent shall determine is necessary or advisable to obtain a
first priority security interest in the Collateral to secure obligations
owing by the Canadian Borrower or any of its Subsidiaries in respect of
Cash Management Losses incurred by the Canadian Administrative Agent, any
Lender or any affiliate of any Lender.

<PAGE>

                                                                              17

          36. Effectiveness. The Amendment shall become effective on the
              -------------
date of satisfaction of the following conditions precedent (the "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 the Borrowers.

          (d) The General Administrative Agent shall have received
     counterparts of the First Amendment to the Guarantee and Collateral
     Agreement, duly executed and delivered by the Loan Parties party
     thereto.

          (e) 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.

          (f) Holdings and the General Administrative Agent shall have
     executed and delivered a letter agreement with respect to such matters
     previously discussed and agreed between Holdings and the General
     Administrative Agent.

          (g) Holdings and the General Administrative Agent shall have
     executed and delivered the Warrant Agreement and the Registration
     Rights Agreement and the Warrants required to be issued pursuant to
     the Warrant Agreement on the Amendment Effective Date shall have been
     issued.

          (h) The Lenders and the General Administrative Agent shall have
     received a budget in form and substance satisfactory to them setting
     forth Holdings' projected monthly levels of revenue and expenses from
     October 31, 2001 through December 31, 2002 (it being understood that
     this condition has been satisfied).

          (i) The Lenders and the General Administrative Agent shall have
     received all fees required to be paid, and all expenses for which
     invoices have been presented, on or before the Amendment Effective
     Date.

          (j) The Borrowers shall have complied with Section 10.11(b) of
     the Credit Agreement with respect to all real property of the
     Borrowers and their Subsidiaries located in the United States of
     America.

          (k) All governmental and third party approvals necessary in
     connection with the Amendment shall have been obtained and be in full
     force and effect.

<PAGE>

                                                                              18

          (l) The General Administrative Agent shall have received such
     legal opinions from counsel to Holdings and its Subsidiaries and such
     documents and other instruments as are customary for transactions of
     this type or as it may reasonably request.

          (m) 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 Amendment on or prior to 5:00 p.m., New
     York City time on February 11, 2002, an amendment fee equal to 0.50% of the
     sum of such Lender's Revolving Credit Commitments and Term Loans then
     outstanding.

          37. Representations and Warranties. After giving effect to the
              ------------------------------
amendment contained herein, on the 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, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations
and warranties shall be true and correct in all material respects as of
such earlier date; 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.

          38. Release and Acknowledgements.
              -----------------------------

          (a) In order to induce the Lenders to enter into this Amendment,
each Loan Party hereby remises, releases and forever discharges, and by
these presents does for its Subsidiaries (direct or indirect), and for
itself and its predecessors, successors, affiliates and assigns (each, a
"Releasor"), remise, release and forever discharge, each Agent, each
 --------
Lender, and each predecessor, affiliate, subsidiary (direct or indirect),
successor, assign, participant, officer, director, employee or agent of any
Agent or any Lender (collectively, the "Released Parties"), of and from all
                                        ----------------
manner of actions at law or equity, all causes of action for damages,
costs, debts, sums of money, accounts, bills, rights of indemnity, breach
of contract, provision of labor or materials, loss of use, loss of
services, expenses, compensation, consequential or punitive damages,
equitable subordination, avoidance of preferential or fraudulent transfers,
or any other thing whatever, arising by virtue of actions taken, actions
omitted to be taken or the occurrence of any other event on or prior to the
Amendment Effective Date, relating in any way to (i) this Amendment, the
Credit Agreement, any other Loan Document or the obligations of the Loan
Parties under the Credit Agreement and the other Loan Documents (the
"Obligations"), (ii) any claims (including, without limitation, for
 -----------
contribution or indemnification) which have or could have arisen out of any
of the transactions contemplated by this Amendment or the Loan Documents or
any other proceedings that have been brought or may be brought by any party
hereto or to any Loan Document or any third party relating to the Loan
Documents or the transactions contemplated thereby, (iii) any acts,
transactions or events that are the subject matter of this Amendment or the
Loan Documents or (iv) the prosecution of any claims or any settlement
negotiations which such Releasor ever had, now or which it, its
Subsidiaries (direct or indirect), or its successors or assigns hereafter
can, shall or may have against the Released Parties by reason of (with
respect to each of clauses (i)-(iv) above) any matter, cause or thing
whatsoever on or prior to the Amendment Effective Date relating to this
Amendment or the Loan Documents; provided, however, that nothing herein
                                 --------  -------
shall be construed or deemed to release any

<PAGE>

                                                                              19

covenants or agreements contained herein or in any Loan Document so long as
such Loan Document shall remain in full force and effect.

          (b) Each Loan Party hereby acknowledges and agrees that the
Obligations are secured by valid and enforceable first priority liens and
security interests granted by the Loan Parties to an Agent, for the ratable
benefit of the Lenders, upon all of the Collateral, subject only to Liens
permitted under the Credit Agreement. The Obligations and the liens and
security interests of the Agents, for the ratable benefit of the Lenders,
in the Collateral are not subject to avoidance, defense, objection, action,
counterclaim, setoff or subordination, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect relating to or affecting creditors'
rights generally. The Obligations constitute legal, valid and binding
obligations of each Loan Party, enforceable in accordance with the terms of
the Loan Documents and pursuant to applicable law, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect relating to or affecting creditors'
rights generally, and subject to the limitations imposed by general
equitable principles (regardless whether such enforceability is considered
in a proceeding at law or in equity). Furthermore, no Loan Party will use
any of its cash or other assets to object to or contest in any manner, or
raise any objections, counterclaims or defenses to, the validity,
perfection, priority or enforceability of the claims or liens of the Agents
and the Lenders relating to this Amendment, the Credit Agreement or any
other Loan Document, or to investigate or assert any claims or causes of
action arising on or prior to the Amendment Effective Date against the
Agents or the Lenders relating to this Amendment, the Credit Agreement or
any other Loan Document.

          (c) Except as expressly set forth in this Amendment, each of the
Loan Parties acknowledges and agrees that the execution and delivery by the
Agents of, or the consent by the Lenders to, this Amendment shall not be
deemed (i) to create a course of dealing or otherwise obligate the Agents
or the Lenders to forbear or execute similar agreements under the same or
similar circumstances in the future, (ii) to modify, relinquish or impair
any right of the Agents or the Lenders to receive any indemnity or similar
payment from any Person or entity as a result of any matter arising from or
relating to this Amendment, (iii) to waive any right of the Lenders to
receive interest at an increased rate as a result of any Events of Default
that may occur under the Credit Agreement as amended by this Amendment,
(iv) to obligate the Lenders in any way to forbear from individually or
collectively enforcing remedies under the Credit Agreement as amended by
this Amendment in any manner or (v) a commitment from any of the Lenders to
forbear or "stand still". Except as expressly set forth in this Amendment,
no past or future forbearance on the part of any of the Lenders should be
viewed as a limitation upon or waiver of the absolute right and privilege
of the Lenders in exercising rights and remedies that currently exist or
may exist after the Amendment Effective Date.

          39. 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.

<PAGE>

                                                                              20

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

          41. Counterparts. This Amendment may be executed in any number of
              ------------
counterparts by the parties hereto, each of which shall be an original, and
all of which when taken together shall constitute one and the same
instrument. Delivery of an executed counterpart by facsimile transmission
shall be effective as delivery of a manually executed counterpart hereof.

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

<PAGE>

                                                                              21

          IN WITNESS WHEREOF, the parties hereto 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/ Paul Walker
                                            ------------------------------------
                                            Name: Paul Walker
                                            Title:President and CEO

                                        HTM HOLDINGS, INC.

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

                                        SMTC MANUFACTURING CORPORATION OF CANADA

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

<PAGE>

                                                                              22

                                        LEHMAN COMMERCIAL PAPER INC., as
                                          General Administrative Agent

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

<PAGE>

                                                                              23

                           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,
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 Fourth Amendment and First Waiver
to and under the Amended and Restated Credit and Guarantee Agreement (the
"Fourth Amendment"), (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 other Security Documents are,
and shall remain, in full force and effect after giving effect to the
Fourth Amendment and all prior modifications to the Amended and Restated
Credit and Guarantee Agreement and (c) agrees to and acknowledges the
provisions of Section 38 of the Fourth Amendment which are incorporated
herein by reference.

                                               SMTC CORPORATION
                                               HTM HOLDINGS, INC.
                                               SMTC MANUFACTURING CORPORATION OF
                                                CALIFORNIA
                                               SMTC MANUFACTURING CORPORATION OF
                                                COLORADO
                                               SMTC MANUFACTURING CORPORATION OF
                                                MASSACHUSETTS
                                               SMTC MANUFACTURING CORPORATION OF
                                                NORTH CAROLINA
                                               SMTC MANUFACTURING CORPORATION OF
                                                TEXAS
                                               SMTC MANUFACTURING CORPORATION OF
                                                WISCONSIN
                                               SMTC MEX HOLDINGS,
                                               INC. QUALTRON, INC.

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

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