Document:

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EXHIBIT 4.1

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                                    FORM OF

                            STOCKHOLDERS AGREEMENT

                                     among

                               SMTC Corporation

                                      and

                      The Stockholders referred to herein

                           Dated as of July __, 2000

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                               TABLE OF CONTENTS

                                                                            Page

1.   EFFECTIVENESS; DEFINITIONS ...............................................2
     1.1. Effectiveness .......................................................2
     1.2. Definitions .........................................................2

2.   [RESERVED] ...............................................................2

3.   [RESERVED] ...............................................................2

4.   [RESERVED] ...............................................................2

5.   [RESERVED] ...............................................................2

6.   REGISTRATION RIGHTS ......................................................2
     6.1. Majority Investor Demand Registration Rights ........................3
          6.1.1. General ......................................................3
          6.1.2. Payment of Expenses ..........................................4
          6.1.3. Additional Procedures ........................................4
     6.2. Investors' Demand Registration Rights ...............................4
          6.2.1. General ......................................................4
          6.2.2. Payment of Expenses ..........................................5
          6.2.3. Additional Procedures ........................................5
     6.3. Piggyback Registration Rights .......................................6
          6.3.1. Piggyback Registration .......................................6
          6.3.2. Payment of Expenses ..........................................7
          6.3.3. Additional Procedures ........................................7
     6.4. Certain Other Provisions ............................................7
          6.4.1. Underwriter's Cutback ........................................7
          6.4.2. Other Actions ................................................8
          6.4.3. Selection of Underwriters and Counsel ........................9
          6.4.4. Lock-Up ......................................................9
     6.5. Indemnification and Contribution ....................................9
          6.5.1. Indemnities of the Company ...................................9
          6.5.2. Indemnities to the Company ..................................11
          6.5.3. Contribution ................................................11
          6.5.4. Limitation on Liability of Holders of Registrable
                 Securities ..................................................12

7.   TRANSFERS TO OTHER HOLDERS ..............................................12

8.   REMEDIES ................................................................12
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     8.1. Generally ..........................................................12
     8.2. [RESERVED] .........................................................12

9.   LEGENDS .................................................................12
     9.1. [RESERVED] .........................................................12
     9.2. 1933 Act Legends ...................................................12
     9.3. Stop Transfer Instruction ..........................................13
     9.4. Termination of 1933 Act Legend .....................................13

10.  [RESERVED] ..............................................................13

11.  AMENDMENT, TERMINATION, ETC. ............................................13
     11.1. Oral Modifications ................................................13
     11.2. Written Modifications .............................................13
     11.3. Termination .......................................................14

12.  DEFINITIONS .............................................................14
     12.1. Certain Matters of Construction ...................................14
     12.2. Definitions .......................................................14

13.  MISCELLANEOUS ...........................................................19
     13.1. Expenses of EMSIcon Transfers .....................................19
     13.2. Authority; Effect .................................................20
     13.3. Notices ...........................................................20
     13.4. Binding Effect, Etc. ..............................................21
     13.5. Descriptive Headings ..............................................22
     13.6. Counterparts ......................................................22
     13.7. Severability ......................................................22

14.  GOVERNING LAW, ETC ......................................................22
     14.1. Governing Law .....................................................22
     14.2. Consent to Jurisdiction ...........................................22
     14.3. WAIVER OF JURY TRIAL ..............................................23
     14.4. Exercise of Rights and Remedies ...................................23

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                             STOCKHOLDERS AGREEMENT

     The Stockholders Agreement (the "1999 Agreement") made as of July 30, 1999
                                      -------------
by and among:

     (i)   SMTC Corporation (the "Company");
                                  -------

     (ii)  SMTC Manufacturing Corporation of Canada (f/k/a The Surface Mount
           Technology Centre, Inc.) ("SMTC-Canada");
                                      -----------

     (iii) EMSIcon Investments ("EMSIcon"), LLC, Edward A. Johnson, James
                                 -------
           Holmes, J & E Enterprises, LLC, Allen & Company, Incorporated, Allen
           Value Partners, L.P., Allen Value Limited, Celerity EMSIcon, LLC,
           Bain Capital Fund VI, L.P., BCIP Associates II, BCIP Trust Associates
           II, BCIP Associates II-B, BCIP Associates II-C, BCM Capital Partners,
           L.P., Bain Capital V Mezzanine Fund, L.P., Sankaty High Yield Asset
           Partners, L.P., General Electric Capital Corporation, RGIP, LLC, J&L
           Investments, LLC ("J&L) and the members of Celerity EMSIcon, LLC
                              ---
           listed on the signature pages thereto (collectively, the "HTM
                                                                     ---
           Investors");
           ---------

     (iv)  P.N. Walker Consulting Inc., Paul Walker, Nichal Inc., Derek
           D'Andrade, Gary Walker, Philip Woodard and Kilmer Electronics Group
           Limited (collectively, the "SMTC Investors"); and
                                       --------------

     (v)   Edward A. Johnson, James Laurion and each Person who, upon acquiring
           Shares in connection with the exercise of Options granted by the
           Company, became party hereto by executing a counterpart signature
           page thereto (collectively, the "Managers"),
                                            --------

is hereby amended and restated in its entirety pursuant to Section 11.2 of the
1999 Agreement by written agreement of the Majority Stockholders, the Majority
HTM Investors, the Majority SMTC Investors and the Majority Managers (as each
term is defined in the 1999 Agreement) in the form of this Stockholders
Agreement (1999 Agreement as amended and restated hereby is referred to herein
as the "Agreement") as of July __, 2000 to read as follows:
        ---------

                                    Recitals
                                    --------

1.   The Company (i) has filed a registration statement on Form S-1 with the
Commission, (ii) intends to effect an Initial Public Offering of New Common
Stock and Exchangeable Shares (each as defined below) and (iii) immediately
prior to the consummation of the Initial Public Offering, intends to (a)
purchase all outstanding Class N Stock from the holders thereof, (b) issue a
single share of special voting stock (the "Special Voting Stock"), (c) cause
                                           --------------------
SMTC Nova
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Scotia to purchase all outstanding Class Y Canadian Shares in exchange for Class
L Stock (d) convert its Class L Stock into Class A Stock, (e) thereafter convert
its Class A stock into a new class of common stock, par value $.01 (the "New
                                                                         ---
Common Stock"), and (f) cause SMTC-Canada to convert the Class L Exchangeable
------------
Shares into exchangeable shares of SMTC-Canada (the "Exchangeable Shares") which
                                                     -------------------
are exchangeable for New Common Stock (the foregoing actions together the
"Reclassification").
 ----------------

2.   Pursuant to the terms of a Stock Purchase Agreement dated May 23, 2000, the
Company intends to acquire the capital stock of Pensar Corporation, a Wisconsin
corporation ("Pensar") and, in connection with such acquisition, the Sellers (as
              ------
defined in such Stock Purchase Agreement, and for purposes of this agreement the
"Pensar Investors") will acquire New Common Stock in consideration of their
 ----------------
interests in the capital stock of Pensar.

3.   The parties desire to amend and restate the 1999 Agreement on the date
hereof to establish the agreements on certain matters following the
Reclassification and the effectiveness of the Initial Public Offering.

4.   It is a condition to the closing of the acquisition of Pensar that the
Pensar Investors execute a counterpart signature page to this Agreement as
"Pensar Investors."

                                    Agreement
                                    ---------

     Therefore, the parties hereto hereby agree as follows:

1.   EFFECTIVENESS; DEFINITIONS.

     1.1  Effectiveness. This Agreement shall become effective upon the closing
          -------------
of the Initial Public Offering.

     1.2  Definitions. Certain terms are used in this Agreement as specifically
          -----------
defined herein. These definitions are set forth or referred to in Section 12
hereof.

2.   [RESERVED].

3.   [RESERVED].

4.   [RESERVED].

5.   [RESERVED].

6.   REGISTRATION RIGHTS. The Company will perform and comply, and cause each of
its subsidiaries to perform and comply, with such of the following provisions as
are

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applicable to it. Each holder of Shares will perform and comply with such of the
following provisions as are applicable to such holder.

     6.1 Majority Investor Demand Registration Rights.
         --------------------------------------------

          6.1.1. General. The Majority Stockholders (for purposes of this
                 -------
     Section 6.1, "Initiating Investors"), by notice to the Company specifying
                   --------------------
     the intended method or methods of disposition, may request that the Company
     effect the registration under the Securities Act for a Public Offering of
     all or a specified part of the Registrable Securities (x) held by such
     Initiating Investors or (y) issuable to such Initiating Investors upon
     Conversion of any Exchangeable Shares held by such Initiating Investors.
     The Company will then use its best efforts to effect the registration under
     the Securities Act of the Registrable Securities which the Company has been
     requested to register by such Initiating Investors together with all other
     Registrable Securities which the Company has been requested to register
     pursuant to Section 6.3 all to the extent requisite to permit the
     disposition (in accordance with the intended methods thereof as aforesaid)
     of the Registrable Securities which the Company has been so requested to
     register; provided, however, that the Company shall not be obligated to
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     take any action to effect any such registration pursuant to this Section
     6.1.1:

               (a) Within 180 days immediately following the effective date of
          any registration statement pertaining to an underwritten public
          offering of securities of the Company for its own account (other than
          a Rule 145 Transaction, or a registration relating solely to employee
          benefit plans); or

               (b) On any form other than Form S-3 (or any successor form) if
          the Company has previously effected three or more registrations of
          Registrable Securities under this Section 6.1.1 on any form other than
          Form S-3 (or any successor form); provided, however, that no
                                            --------  -------
          registrations of Registrable Securities which shall not have become
          and remained effective in accordance with the provisions of this
          Section 6, and no registrations of Registrable Securities pursuant to
          which the Initiating Investors are not able to include at least 90% of
          the Registrable Securities which they desired to include, shall be
          included in the calculation of numbers of registrations contemplated
          by this clause (b).

               6.1.1.1. Form. Except as otherwise provided above, each
                        ----
          registration requested pursuant to this Section 6.1.1 shall be
          effected by the filing of a registration statement on Form S-1 (or any
          other form which includes substantially the same information as would
          be required to be included in a registration statement on such form as
          currently constituted), unless the use of a different form has been
          agreed to in writing by holders of at least a majority of

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          the Registrable Securities to be included in the proposed registration
          statement in question by the Initiating Investors (the "Majority
                                                                  --------
          Participating Stockholders").
          --------------------------

          6.1.2. Payment of Expenses. The Company shall pay all reasonable
                 -------------------
     expenses of the Initiating Investors incurred in connection with each
     registration of Registrable Securities requested pursuant to this Section
     6.1, other than underwriting discount and commission, if any, and
     applicable transfer taxes, if any.

          6.1.3. Additional Procedures. In the case of a registration pursuant
                 ---------------------
     to Section 6.1, whenever the Majority Participating Stockholders shall
     request that such registration shall be effected pursuant to an
     underwritten offering, the Company shall include such information in the
     written notices to holders of Registrable Securities and Convertible
     Securities referred to in Section 6.3. In such event, the right of any
     holder of Registrable Securities to have securities owned by such holder
     included in such registration pursuant to Section 6.1 shall be conditioned
     upon such holder's participation in such underwriting and the inclusion of
     such holder's Registrable Securities in the underwriting (unless otherwise
     mutually agreed upon by the Majority Participating Stockholders and such
     holder). If requested by such underwriters, the Company together with the
     holders of Registrable Securities proposing to distribute their securities
     through such underwriting will enter into an underwriting agreement with
     such underwriters for such offering containing such representations and
     warranties by the Company and such holders and such other terms and
     provisions as are customarily contained in underwriting agreements with
     respect to secondary distributions, including, without limitation,
     customary indemnity and contribution provisions (subject, in each case, to
     the limitations on such liabilities set forth in this Agreement).

     6.2. Investors' Demand Registration Rights.
          -------------------------------------

          6.2.1. General. From and after July 30, 2003, each of the Majority
                 -------
     Bain Investors, the Majority Celerity Investors and the Majority SMTC
     Investors, in each case, holding Shares that constitute at least 15% of the
     Registrable Securities (for purposes of this Section 6.2, "Initiating
                                                                ----------
     Investors"), by notice to the Company specifying the intended method or
     ---------
     methods of disposition, may request that the Company effect the
     registration under the Securities Act for a Public Offering of all or a
     specified part of the Registrable Securities (x) held by such Initiating
     Investors or (y) issuable to such Initiating Investor upon Conversion of
     any Exchangeable Shares held by such Initiating Investor. The Company will
     then use its best efforts to effect the registration under the Securities
     Act of the Registrable Securities which the Company has been requested to
     register by such Initiating Investors together with all other Registrable
     Securities which the Company has been requested to register pursuant to
     Section 6.3 all to the extent requisite to permit the disposition (in
     accordance with

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     the intended methods thereof as aforesaid) of the Registrable Securities
     which the Company has been so requested to register; provided, however,
                                                          --------  -------
     that the Company shall not be obligated to take any action to effect any
     such registration pursuant to this Section 6.2.1:

               (a) Within 180 days immediately following the effective date of
          any registration statement pertaining to an underwritten public
          offering of securities of the Company for its own account (other than
          a Rule 145 Transaction, or a registration relating solely to employee
          benefit plans); or

               (b) On any form other than Form S-3 (or any successor form) if
          the Company has previously effected three or more registrations of
          Registrable Securities under this Section 6.2.1 on any form other than
          Form S-3 (or any successor form); provided, however, that no
                                            --------  -------
          registrations of Registrable Securities which shall
          not have become and remained effective in accordance with the
          provisions of this Section 6, and no registrations of Registrable
          Securities pursuant to which the Initiating Investors are not able to
          include at least 90% of the Registrable Securities which they desired
          to include, shall be included in the calculation of numbers of
          registrations contemplated by this clause (b).

               6.2.1.1. Form. Except as otherwise provided above, each
                        ----
          registration requested pursuant to this Section 6.2.1 shall be
          effected by the filing of a registration statement on Form S-1 (or any
          other form which includes substantially the same information as would
          be required to be included in a registration statement on such form as
          currently constituted), unless the use of a different form has been
          agreed to in writing by holders of at least a majority of the
          Registrable Securities to be included in the proposed registration
          statement in question by the Initiating Investors (the "Majority
                                                                  --------
          Participating Stockholders").
          --------------------------

          6.2.2. Payment of Expenses. The Company shall pay all reasonable
                 -------------------
     expenses of the Initiating Investors incurred in connection with each
     registration of Registrable Securities requested pursuant to this Section
     6.2, other than underwriting discount and commission, if any, and
     applicable transfer taxes, if any.

          6.2.3. Additional Procedures. In the case of a registration pursuant
                 ---------------------
     to Section 6.2, whenever the Majority Participating Stockholders shall
     request that such registration shall be effected pursuant to an
     underwritten offering, the Company shall include such information in the
     written notices to holders of Registrable Securities and Convertible
     Securities referred to in Section 6.3. In such event, the right of any
     holder of Registrable Securities to have securities owned by such holder
     included in such

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<PAGE>

     registration pursuant to Section 6.2 shall be conditioned upon such
     holder's participation in such underwriting and the inclusion of such
     holder's Registrable Securities in the underwriting (unless otherwise
     mutually agreed upon by the Majority Participating Stockholders and such
     holder). If requested by such underwriters, the Company together with the
     holders of Registrable Securities proposing to distribute their securities
     through such underwriting will enter into an underwriting agreement with
     such underwriters for such offering containing such representations and
     warranties by the Company and such holders and such other terms and
     provisions as are customarily contained in underwriting agreements with
     respect to secondary distributions, including, without limitation,
     customary indemnity and contribution provisions (subject, in each case, to
     the limitations on such liabilities set forth in this Agreement).

     6.3  Piggyback Registration Rights.
          -----------------------------

          6.3.1. Piggyback Registration.
                 ----------------------

               6.3.1.1. General. Each time the Company proposes to register any
                        -------
          shares of Common Stock under the Securities Act on a form which would
          permit registration of Registrable Securities for sale to the public,
          for its own account and/or for the account of any stockholder
          (pursuant to Section 6.1, Section 6.2 or otherwise) for sale in a
          Public Offering, the Company will give notice to all holders of
          Registrable Securities and holders of Convertible Securities of its
          intention to do so. Any such holder may, by written response delivered
          to the Company within 20 days after the effectiveness of such notice,
          request that all or a specified part of the Registrable Securities (a)
          held by such holder or (b) issuable to such holder upon Conversion of
          Exchangeable Shares held by such holder be included in such
          registration. The Company thereupon will use its reasonable efforts to
          cause to be included in such registration under the Securities Act all
          shares of Common Stock which the Company has been so requested to
          register by such holders, to the extent required to permit the
          disposition (in accordance with the methods to be used by the Company
          or other holders of shares of Common Stock in such Public Offering) of
          the Registrable Securities to be so registered. No registration of
          Registrable Securities effected under this Section 6.3 shall relieve
          the Company of any of its obligations to effect registrations of
          Registrable Securities pursuant to Section 6.1 or Section 6.2.

               6.3.1.2. Excluded Transactions. The Company shall not be
                        ---------------------
          obligated to effect any registration of Registrable Securities under
          this Section 6.3 incidental to the registration of any of its
          securities in connection with:

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               (a) Any Public Offering relating to employee benefit plans or
          dividend reinvestment plans;

               (b) Any Public Offering relating to the acquisition or merger
          after the date hereof by the Company or any of its subsidiaries of or
          with any other businesses; or

               (c) The Initial Public Offering and the Qualified Public
          Offering, unless such Public Offering has been initiated pursuant to
          Section 6.1.1 or 6.2.1.

          6.3.2. Payment of Expenses. The Company shall pay all reasonable
                 -------------------
     expenses of a single legal counsel representing any and all holders of
     Registrable Securities incurred in connection with each registration of
     Registrable Securities requested pursuant to this Section 6.3.

          6.3.3. Additional Procedures. Holders of Shares participating in any
                 ---------------------
     Public Offering pursuant to this Section 6.3 shall take all such actions
     and execute all such documents and instruments that are reasonably
     requested by the Company to effect the sale of their Shares in such Public
     Offering, including, without limitation, being parties to the underwriting
     agreement entered into by the Company and any other selling shareholders in
     connection therewith and being liable in respect of the representations and
     warranties by, and the other agreements (including without limitation
     customary selling stockholder representations, warranties, indemnifications
     and "lock-up" agreements) for the benefit of the underwriters; provided,
                                                                    --------
     however, that (a) with respect to individual representations, warranties,
     -------
     indemnities and agreements of sellers of Shares in such Public Offering,
     the aggregate amount of such liability shall not exceed such holder's net
     proceeds from such offering and (b) to the extent selling stockholders give
     further representations, warranties and indemnities, then with respect to
     all other representations, warranties and indemnities of sellers of shares
     in such Public Offering, the aggregate amount of such liability shall not
     exceed the lesser of (i) such holder's pro rata portion of any such
     liability, in accordance with such holder's portion of the total number of
     Shares included in the offering or (ii) such holder's net proceeds from
     such offering.

     6.4. Certain Other Provisions.
          ------------------------

          6.4.1. Underwriter's Cutback. In connection with any registration of
                 ---------------------
     shares, the underwriter may determine that marketing factors (including,
     without limitation, an adverse effect on the per share offering price)
     require a limitation of the number of shares to be underwritten.
     Notwithstanding any contrary provision of this Section 6 and subject to the
     terms of this Section 6.4.1, the underwriter may limit the number of shares
     which would otherwise be included in such registration by excluding any or
     all

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<PAGE>

     Registrable Securities from such registration (it being understood that the
     number of shares which the Company seeks to have registered in such
     registration shall not be subject to exclusion, in whole or in part, under
     this Section 6.4.1). Upon receipt of notice from the underwriter of the
     need to reduce the number of shares to be included in the registration, the
     Company shall advise all holders of the Company's securities that would
     otherwise be registered and underwritten pursuant hereto, and the number of
     shares of such securities, including Registrable Securities, that may be
     included in the registration shall be allocated in the following manner,
     unless the underwriter shall determine that marketing factors require a
     different allocation: shares, other than Registrable Securities, requested
     to be included in such registration by shareholders shall be excluded to
     the extent necessary to achieve the underwriter's cutback unless the
     Company has, with the consent of the Majority Stockholders, granted
     registration rights which are to be treated on an equal basis with
     Registrable Securities for the purpose of the exercise of the underwriter
     cutback; and, if a limitation on the number of shares is still required,
     the number of Registrable Securities and other shares of Common Stock that
     may be included in such registration shall be allocated among holders
     thereof in proportion, as nearly as practicable, to the respective amounts
     of Common Stock which each shareholder requested be registered in such
     registration. For purposes of any underwriter cutback, all Common Stock
     held by any holder of Registrable Securities which is a partnership or
     corporation shall also include any Common Stock held by the partners,
     retired partners, shareholders or affiliated entities of such holder, or
     the estates and family members of any such partners and retired partners
     and any trusts for the benefit of any of the foregoing persons, and such
     holder and other persons shall be deemed to be a single selling holder, and
     any pro rata reduction with respect to such selling holder shall be based
     upon the aggregate amount of Common Stock owned by all entities and
     individuals included in such selling holder, as defined in this sentence.
     No securities excluded from the underwriting by reason of the underwriter's
     marketing limitation shall be included in such registration. If any holder
     of Registrable Securities disapproves of the terms of the underwriting, it
     may elect to withdraw therefrom by written notice to the Company and the
     underwriter. The Registrable Securities so withdrawn shall also be
     withdrawn from registration.

          6.4.2. Other Actions. If and in each case when the Company is required
                 -------------
     to use its best efforts to effect a registration of any Registrable
     Securities as provided in this Section 6, the Company shall take
     appropriate and customary actions in furtherance thereof, including,
     without limitation: (a) promptly filing with the Commission a registration
     statement and using reasonable efforts to cause such registration statement
     to become effective, (b) preparing and filing with the Commission such
     amendments and supplements to such registration statements as may be
     required to comply with the Securities Act and to keep such registration
     statement effective for a period not to exceed 270 days from the date of
     effectiveness or such earlier time as the Registrable Securities covered by
     such registration statement shall have been disposed of in accordance with
     the intended method of distribution therefor or the expiration of the

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<PAGE>

     time when a prospectus relating to such registration is required to be
     delivered under the Securities Act, (c) use its best efforts to register or
     qualify such Registrable Securities under the state securities or "blue
     sky" laws of such jurisdictions as the sellers shall reasonably request;
     provided, however, that the Company shall not be obligated to file any
     --------  -------
     general consent to service of process or to qualify as a foreign
     corporation in any jurisdiction in which it is not so qualified or to
     subject itself to taxation in respect of doing business in any jurisdiction
     in which it would not otherwise be so subject and (d) otherwise cooperate
     reasonably with, and take such customary actions as may reasonably be
     requested by the holders of Registrable Securities in connection with, such
     registration.

          6.4.3. Selection of Underwriters and Counsel. The underwriters and
                 -------------------------------------
     legal counsel to be retained in connection with any Public Offering shall
     be selected by the Board or, in the case of an offering following a request
     therefor under Section 6.1, the Initiating Investors.

          6.4.4. Lock-Up. Without the prior written consent of the underwriters
                 -------
     managing any Public Offering, for a period beginning seven days immediately
     preceding and ending on the 90th day (or, in the case of the Initial Public
     Offering, the 180th day) following the effective date of the registration
     statement used in connection with such offering, no holder of Shares
     (whether or not a selling shareholder pursuant to such registration
     statement) shall (a) offer, pledge, sell, contract to sell, sell any option
     or contract to purchase, purchase any option or contract to sell, grant any
     option, right or warrant to purchase, lend, or otherwise Transfer, directly
     or indirectly, any shares of Common Stock or any securities convertible
     into or exercisable or exchangeable for such Common Stock or (b) enter into
     any swap or other arrangement that transfers to another, in whole or in
     part, any of the economic consequences of ownership of Common Stock,
     whether any such transaction described in clause (a) or (b) above is to be
     settled by delivery of such Common Stock or such other securities, in cash
     or otherwise; provided, however, that the foregoing restrictions shall not
                   --------  -------
     apply to (i) transactions relating to shares of Common Stock or other
     securities acquired in open market transactions after the completion of the
     Initial Public Offering, (ii) Transfers to a Permitted Transferee of such
     holder or (iii) Conversions of Exchangeable Shares or conversions or
     exchanges of shares of Common Stock into other classes of Common Stock, in
     either case without change of holder, or (iv) transfers of Common Stock to
     any of the Pensar Investors, the Company or its affiliates pursuant to the
     Escrow Agreement dated on or about the date hereof among the Company, the
     Pensar Investors and Brown Brothers Harriman & Co., as Escrow Agent.

     6.5. Indemnification and Contribution.
          --------------------------------

          6.5.1. Indemnities of the Company. In the event of any registration of
                 --------------------------
     any Registrable Securities or other debt or equity securities of the
     Company or any of its

                                      -9-
<PAGE>

     subsidiaries under the Securities Act pursuant to this Section 6 or
     otherwise, and in connection with any registration statement or any other
     disclosure document produced by or on behalf of the Company or any of its
     subsidiaries including, without limitation, reports required and other
     documents filed under the Exchange Act, and other documents pursuant to
     which any debt or equity securities of the Company or any of its
     subsidiaries are sold (whether or not for the account of the Company or its
     subsidiaries), the Company will, and hereby does, and will cause each of
     its subsidiaries, jointly and severally, to indemnify and hold harmless
     each seller of Registrable Securities, any Person who is or might be deemed
     to be a controlling Person of the Company or any of its subsidiaries within
     the meaning of Section 15 of the Securities Act or Section 20 of the
     Exchange Act, their respective direct and indirect partners, advisory board
     members, directors, officers, trustees, members and shareholders, and each
     other Person, if any, who controls any such seller or any such holder
     within the meaning of Section 15 of the Securities Act or Section 20 of the
     Exchange Act (each such person being referred to herein as a "Covered
                                                                   -------
     Person"), against any losses, claims, damages or liabilities (or actions or
     ------
     proceedings in respect thereof), joint or several, to which such Covered
     Person may be or become subject under the Securities Act, the Exchange Act,
     any other securities or other law of any jurisdiction, the common law or
     otherwise, insofar as such losses, claims, damages or liabilities (or
     actions or proceedings in respect thereof) arise out of or are based upon
     (a) any untrue statement or alleged untrue statement of any material fact
     contained or incorporated by reference in any registration statement under
     the Securities Act, any preliminary prospectus or final prospectus included
     therein, or any related summary prospectus, or any amendment or supplement
     thereto, or any document incorporated by reference therein, or any other
     such disclosure document (including without limitation reports and other
     documents filed under the Exchange Act and any document incorporated by
     reference therein) or other document or report, (b) any omission or alleged
     omission to state therein a material fact required to be stated therein or
     necessary to make the statements therein not misleading or (c) any
     violation or alleged violation by the Company or any of its subsidiaries of
     any federal, state, foreign or common law rule or regulation applicable to
     the Company or any of its subsidiaries and relating to action or inaction
     in connection with any such registration, disclosure document or other
     document or report, and will reimburse such Covered Person for any legal or
     any other expenses incurred by it in connection with investigating or
     defending any such loss, claim, damage, liability, action or proceeding;
     provided, however, that neither the Company nor any of its subsidiaries
     --------  -------
     shall be liable to any Covered Person in any such case to the extent that
     any such loss, claim, damage, liability, action or proceeding arises out of
     or is based upon an untrue statement or alleged untrue statement or
     omission or alleged omission made in such registration statement, any such
     preliminary prospectus, final prospectus, summary prospectus, amendment or
     supplement, incorporated document or other such disclosure document or
     other document or report, in reliance upon and in conformity with written
     information furnished to the Company or to any of its subsidiaries through
     an instrument duly

                                     -10-
<PAGE>

     executed by such Covered Person specifically stating that it is for use in
     the preparation thereof. The indemnities of the Company and of its
     subsidiaries contained in this Section 6.5.1 shall remain in full force and
     effect regardless of any investigation made by or on behalf of such Covered
     Person and shall survive any transfer of securities.

          6.5.2. Indemnities to the Company. The Company and any of its
                 --------------------------
     subsidiaries may require, as a condition to including any securities in any
     registration statement filed pursuant to this Section 6, that the Company
     and any of its subsidiaries shall have received an undertaking satisfactory
     to it from the prospective seller of such securities, to indemnify and hold
     harmless the Company and any of its subsidiaries, each director of the
     Company or any of its subsidiaries, each officer of the Company or any of
     its subsidiaries who shall sign such registration statement and each other
     Person (other than such seller), if any, who controls the Company and any
     of its subsidiaries within the meaning of Section 15 of the Securities Act
     or Section 20 of the Exchange Act and each other prospective seller of such
     securities with respect to any statement in or omission from such
     registration statement, any preliminary prospectus, final prospectus or
     summary prospectus included therein, or any amendment or supplement
     thereto, or any other disclosure document (including, without limitation,
     reports and other documents filed under the Exchange Act or any document
     incorporated therein) or other document or report, if such statement or
     omission was made in reliance upon and in conformity with written
     information furnished to the Company or any of its subsidiaries through an
     instrument executed by such seller specifically stating that it is for use
     in the preparation of such registration statement, preliminary prospectus,
     final prospectus, summary prospectus, amendment or supplement, incorporated
     document or other document or report. Such indemnity shall remain in full
     force and effect regardless of any investigation made by or on behalf of
     the Company, any of its subsidiaries or any such director, officer or
     controlling Person and shall survive any transfer of securities.

          6.5.3. Contribution. If the indemnification provided for in Sections
                 ------------
     6.5.1 or 6.5.2 is unavailable to a party that would have been entitled to
     indemnification pursuant to the foregoing provisions of this Section 6.5
     (an "Indemnitee") in respect of any losses, claims, damages or liabilities
          ----------
     (or actions or proceedings in respect thereof) referred to therein, then
     each party that would have been an indemnifying party thereunder shall, in
     lieu of indemnifying such Indemnitee, contribute to the amount paid or
     payable by such Indemnitee as a result of such losses, claims, damages or
     liabilities (or actions or proceedings in respect thereof) in such
     proportion as is appropriate to reflect the relative fault of such
     indemnifying party on the one hand and such Indemnitee on the other in
     connection with the statements or omissions which resulted in such losses,
     claims, damages or liabilities (or actions or proceedings in respect
     thereof). The relative fault shall be determined by reference to, among
     other things, whether the untrue or alleged untrue statement of a material
     fact or the omission or alleged omission to state a material fact relates
     to information supplied by such

                                     -11-
<PAGE>

     indemnifying party or such Indemnitee and the parties' relative intent,
     knowledge, access to information and opportunity to correct or prevent such
     statement or omission. The parties agree that it would not be just or
     equitable if contribution pursuant to this Section 6.5.3 were determined by
     pro rata allocation or by any other method of allocation which does not
     take account of the equitable considerations referred to in the preceding
     sentence. The amount paid or payable by a contributing party as a result of
     the losses, claims, damages or liabilities (or actions or proceedings in
     respect thereof) referred to above in this Section 6.5.3 shall include any
     legal or other expenses reasonably incurred by such Indemnitee in
     connection with investigating or defending any such action or claim. No
     Person guilty of fraudulent misrepresentation (within the meaning of
     Section 11(f) of the Securities Act) shall be entitled to contribution from
     any Person who was not guilty of such fraudulent misrepresentation.

          6.5.4. Limitation on Liability of Holders of Registrable Securities.
                 ------------------------------------------------------------
     The liability of each holder of Registrable Securities in respect of any
     indemnification or contribution obligation of such holder arising under
     this Section 6.5 shall not in any event exceed an amount equal to the net
     proceeds to such holder (after deduction of all underwriters' discounts and
     commissions) from the disposition of the Registrable Securities disposed of
     by such holder pursuant to such registration.

7.   TRANSFERS TO OTHER HOLDERS. Shares Transferred by a holder of Shares to
another holder of shares under this Agreement shall be deemed for all purposes
hereof to be HTM Shares, SMTC Shares, Pensar Shares, or the Management Shares
hereunder, of like kind with the other Shares held by the acquiring holder.

8.   REMEDIES.

     8.1 Generally. To the extent permitted by applicable law, the Company and
         ---------
each holder of Shares shall have all remedies at law, in equity or otherwise in
the event of any breach or violation of this Agreement or any default hereunder
by the Company or any holder of Shares. The parties acknowledge and agree that
in the event of any breach of this Agreement, in addition to any other remedies
which may be available, each of the parties hereto shall be entitled to specific
performance of the obligations of the other parties hereto and, in addition, to
such other equitable remedies (including, without limitation, preliminary or
temporary relief) as may be appropriate in the circumstances.

     8.2. [RESERVED].

9.   LEGENDS.

     9.1. [RESERVED].

                                     -12-
<PAGE>

     9.2. 1933 Act Legends. Each certificate representing Shares shall have the
          ----------------
following legend endorsed conspicuously thereupon:

          The securities represented by this certificate were issued in a
     private placement, without registration under the Securities Act of 1933,
     as amended (the "Act"), and may not be sold, assigned, pledged or otherwise
                      ---
     transferred in the absence of an effective registration under the Act
     covering the transfer or an opinion of counsel, satisfactory to the issuer,
     that registration under the Act is not required.

     9.3. Stop Transfer Instruction. The Company will instruct any transfer
          -------------------------
agent not to register the Transfer of any Shares until the conditions specified
in the foregoing legends are satisfied.

     9.4. Termination of 1933 Act Legend. The requirement imposed by Section 9.2
          ------------------------------
shall cease and terminate as to any particular Shares (a) when, in the opinion
of Ropes & Gray, or other counsel reasonably acceptable to the Company, such
legend is no longer required in order to assure compliance by the Company with
the Securities Act or (b) when such Shares have been effectively registered
under the Securities Act or transferred pursuant to Rule 144. Wherever (x) such
requirement shall cease and terminate as to any Shares or (y) such Shares shall
be transferable under paragraph (k) of Rule 144, the holder thereof shall be
entitled to receive from the Company, without expense, new certificates not
bearing the legend set forth in Section 9.2.

10.  [RESERVED].

11.  AMENDMENT, TERMINATION, ETC.

     11.1. Oral Modifications. This Agreement may not be orally amended,
           ------------------
modified, extended or terminated, nor shall any oral waiver of any of its terms
be effective.

     11.2. Written Modifications. This Agreement may be amended, modified,
           ---------------------
extended or terminated, and the provisions hereof may be waived, only by an
agreement in writing signed by the Majority Stockholders; provided, however,
                                                          --------  -------
that (a) the consent of the Majority HTM Investors shall be required for any
amendment, modification, extension, termination or waiver which has a material
adverse effect on the rights of the holders of HTM Shares as such under this
Agreement, (b) the consent of the Majority SMTC Investors shall be required for
any amendment, modification, extension, termination or waiver which has a
material adverse effect on the rights of the holders of SMTC Shares as such
under this Agreement, (c) the consent of the Majority Pensar Investors shall be
required for any amendment, modification, extension, termination or waiver which
has a material adverse effect on the rights of the holders of Pensar Shares as
such under this Agreement and (d) the consent of the Majority Managers shall be
required for any amendment, modification, extension, termination or waiver

                                     -13-
<PAGE>

which has a material adverse effect on the rights of the holders of Management
Shares as such under this Agreement. Each such amendment, modification,
extension, termination and waiver shall be binding upon each party hereto and
each holder of Shares subject hereto. In addition, each party hereto and each
holder of Shares subject hereto may waive any right hereunder by an instrument
in writing signed by such party or holder.

     11.3. Termination. No termination under this Agreement shall relieve any
           -----------
Person of liability for breach prior to termination.

12.  DEFINITIONS. For purposes of this Agreement:

     12.1. Certain Matters of Construction. In addition to the definitions
           -------------------------------
referred to or set forth below in this Section 12:

          (a) The words "hereof", "herein", "hereunder" and words of similar
     import shall refer to this Agreement as a whole and not to any particular
     Section or provision of this Agreement, and, unless otherwise provided,
     reference to a particular Section shall refer to the applicable Section of
     this Agreement and shall include all subsections thereof;

          (b) Definitions shall be equally applicable to both nouns and verbs
     and the singular and plural forms of the terms defined; and

          (c) The masculine, feminine and neuter genders shall each include the
     other.

     12.2. Definitions. The following terms shall have the following meanings:
           -----------

     "Agreement" shall have the meaning set forth in the Preamble.
      ---------

     "Bain Equity Funds" shall mean, collectively, Bain Capital Fund VI, L.P.,
      -----------------
BCIP Associates II, BCIP Trust Associates II, BCIP Associates II-B and BCIP
Associates II-C.

     "Bain Investors" shall mean, collectively, Bain Capital Fund VI, L.P., BCIP
      --------------
Associates II, BCIP Trust Associates II, BCIP Associates II-B, BCIP Associates
II-C, Bain Capital V Mezzanine Fund, L.P., BCM Capital Partners, L.P., Sankaty
High Yield Asset Partners, L.P.

     The "Beneficial Owner" of any Share shall be the owner of such Share and,
          ----------------
in the case of any Share owned by EMSIcon, the owner of the membership unit of
EMSIcon corresponding to such Share. The terms "Beneficial Ownership" and
                                                --------------------
"Beneficially Owned" shall have a corresponding meaning.
 ------------------

     "Celerity Investor" shall mean Celerity EMSIcon, LLC.
      -----------------

                                     -14-
<PAGE>

     "Class A Stock" shall mean the Company's Class A-1 Common Stock together
      -------------
with the Class A-2 Common Stock.

     "Class A-1 Stock" shall mean the Company's Class A-1 Common Stock, par
      ---------------
value $.001 per share.

     "Class A-2 Stock" shall mean the Company's Class A-2 Common Stock, par
      ---------------
value $.001 per share.

     "Class L Exchangeable Shares" shall mean SMTC-Canada's Class L non-voting
      ---------------------------
preferred shares.

     "Class L Stock" shall mean the Company's Class L Common Stock, par value
      -------------
$.001 per share.

     "Class N Stock" shall mean the Company's Class N Common Stock, par value
      -------------
$.001 per share.

     "Class Y Canadian Shares" shall mean SMTC-Canada's Class Y non-voting
      -----------------------
preferred shares.

     "Commission" shall mean the Securities and Exchange Commission.
      ----------

     "Common Stock" shall mean the common stock of the Company including without
      ------------
limitation the Class A Stock, the Class L Stock and the New Common Stock.

     "Company" shall have the meaning set forth in the Preamble.
      -------

     "Conversion" shall mean the Transfer of an Exchangeable Share to the
      ----------
Company or one of its subsidiaries in consideration of the receipt of Common
Stock whether pursuant to the Articles of Incorporation (as amended from time to
time) of SMTC-Canada, any agreement relating generally to the conversion of
Exchangeable Shares or otherwise, and "Convert" shall have a similar meaning.

     "Convertible Securities" shall mean any evidence of indebtedness, shares of
      ----------------------
stock (other than Common Stock) or other securities which are directly or
indirectly convertible into or exchangeable or exercisable for shares of Common
Stock, including without limitation the Exchangeable Shares.

     "Covered Person" shall have the meaning set forth in Section 6.5.1.
      --------------

     "EMSIcon" shall have the meaning set forth in the Preamble.
      -------

                                     -15-
<PAGE>

     "Equivalent Shares" shall mean as to any outstanding shares of Common
      -----------------
Stock, such number of shares of Common Stock, and as to any outstanding Options
or Convertible Securities, the maximum number of shares of Common Stock for
which or into which such Options or Convertible Securities may at the time be
exercised, exchanged or converted.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as in effect
      ------------
from time to time.

     "Exchangeable Shares" shall have the meaning set forth in the Recitals.
      -------------------

     "HTM" shall have the meaning set forth in the Recitals.
      ---

     "HTM Investors" shall have the meaning set forth in the Preamble.
      -------------

     "HTM Shares" shall mean (a) all shares of Common Stock originally issued
      ----------
to, or issued with respect to shares originally issued to, or held by, an HTM
Investor, whenever issued, including, without limitation, all shares of Common
Stock issued pursuant to the exercise of any Convertible Securities and (b) all
Convertible Securities originally granted or issued to an HTM Investor. As to
any particular HTM Shares, such shares shall cease to be HTM Shares when (w) a
registration statement with respect to the sale of such securities shall have
become effective under the Securities Act and such securities shall have been
disposed of in accordance with such registration statement, (x) such securities
shall have been Transferred pursuant to Rule 144 or Rule 701, (y) subject to the
provisions of Section 9, such securities shall have been otherwise transferred,
new certificates for them not bearing a legend restricting further transfer
shall have been delivered by the Company and subsequent disposition of them
shall not require registration of them under the Securities Act and such
securities may be distributed without volume limitation or other restrictions on
transfer under Rule 144 (including without application of paragraphs (c), (e),
(f) and (h) of Rule 144) or (z) such securities shall have ceased to be
outstanding. Except as otherwise provided in this Agreement, Convertible
Securities shall be treated as a number of Shares equal to the number of
Equivalent Shares represented by such Convertible Securities in all cases where
it is necessary to calculate the number of Shares held by any holder of HTM
Shares.

     "Indemnitee" shall have the meaning set forth in Section 6.5.3.
      ----------

     "Initial Public Offering" means the initial Public Offering registered on
      -----------------------
Form S-1 (or any successor form under the Securities Act).

     "Initiating Investors" shall have the meaning set forth in Sections 6.1.1,
      --------------------
6.2.1.1 and 6.2.1.2.

     "J&L" shall have the meaning set forth in the Preamble.
      ---

                                     -16-
<PAGE>

     "Majority Bain Investors" shall mean, as of any date, the holders of a
      -----------------------
majority of the Shares then Beneficially Owned by the Bain Investors.

     "Majority Celerity Investors" shall mean, as of any date, the holders of a
      ---------------------------
majority of the Shares then Beneficially Owned by the Celerity Investor.

     "Majority HTM Investors" shall mean, as of any date, the holders of a
      ----------------------
majority of the HTM Shares outstanding on such date.

     "Majority Managers" shall mean, as of any date, the holders of a majority
      -----------------
of the Management Shares outstanding on such date.

     "Majority Participating Stockholders" shall have the meaning set forth in
      -----------------------------------
Section 6.2.1.1 and 6.2.1.4.

     "Majority SMTC Investors" shall mean, as of any date, the holders of a
      -----------------------
majority of the SMTC Shares outstanding on such date.

     "Majority Stockholders" shall mean, as of any date, the holders of a
      ---------------------
majority of the Shares outstanding on such date.

     "Management Shares" shall mean (a) all shares of Common Stock originally
      -----------------
issued to, or issued with respect to shares originally issued to, or held by, a
Manager, whenever issued, including, without limitation, all shares of Common
Stock issued pursuant to the exercise of any Convertible Securities and (b) all
Convertible Securities originally granted or issued to a Manager. As to any
particular Management Shares, such shares shall cease to be Management Shares
when (w) a registration statement with respect to the sale of such securities
shall have become effective under the Securities Act and such securities shall
have been disposed of in accordance with such registration statement, (x) such
securities shall have been Transferred pursuant to Rule 144 or Rule 701, (y)
subject to the provisions of Section 9, such securities shall have been
otherwise transferred, new certificates for them not bearing a legend
restricting further transfer shall have been delivered by the Company and
subsequent disposition of them shall not require registration of them under the
Securities Act and such securities may be distributed without volume limitation
or other restrictions on transfer under Rule 144 (including without application
of paragraphs (c), (e), (f) and (h) of Rule 144) or (z) such securities shall
have ceased to be outstanding. Except as otherwise provided in this Agreement,
Convertible Securities shall be treated as a number of Shares equal to the
number of Equivalent Shares represented by such Convertible Securities in all
cases where it is necessary to calculate the number of Shares held by any holder
of Management Shares.

     "Managers" shall have the meaning set forth in the Preamble.
      --------

     "New Common Stock" shall have the meaning set forth in the Recitals.
      ----------------

                                     -17-
<PAGE>

     "Options" shall mean Convertible Securities in the form of options or
      -------
warrants to subscribe for, purchase or otherwise acquire either Common Stock or
other Convertible Securities.

     "Pensar" shall have the meaning set forth in the Recitals.
      ------

     "Pensar Investors" shall have the meaning set forth in the Recitals.
      ----------------

     "Pensar Shares" shall mean (a) all shares of Common Stock originally issued
      -------------
to, or issued with respect to shares originally issued to, or held by, a Pensar
Investor, whenever issued, including, without limitation, all shares of Common
Stock issued pursuant to the exercise of any Convertible Securities and (b) all
Convertible Securities originally granted or issued to a Pensar Investor. As to
any particular Pensar Shares, such shares shall cease to be Pensar Shares when
(w) a registration statement with respect to the sale of such securities shall
have become effective under the Securities Act and such securities shall have
been disposed of in accordance with such registration statement, (x) such
securities shall have been Transferred pursuant to Rule 144 or Rule 701, (y)
subject to the provisions of Section 9, such securities shall have been
otherwise transferred, new certificates for them not bearing a legend
restricting further transfer shall have been delivered by the Company and
subsequent disposition of them shall not require registration of them under the
Securities Act and such securities may be distributed without volume limitation
or other restrictions on transfer under Rule 144 (including without application
of paragraphs (c), (e), (f) and (h) of Rule 144) or (z) such securities shall
have ceased to be outstanding. Except as otherwise provided in this Agreement,
Convertible Securities shall be treated as a number of Shares equal to the
number of Equivalent Shares represented by such Convertible Securities in all
cases where it is necessary to calculate the number of Shares held by any holder
of Pensar Shares.

     "Permitted Transferee" shall mean (a) with respect to any holder of Shares
      --------------------
who is a natural Person, each spouse or child or other descendants of such
holder, each trust created solely for the benefit of one or more of the
aforementioned Persons and their spouses and each custodian or guardian of any
property of one or more of the aforementioned Persons in his capacity as such
custodian or guardian (each such Person set forth in this clause (a), a "Member
                                                                         ------
of the Immediate Family"), (b) with respect to Shares held by a natural Person
-----------------------
and distributed by will or other instrument taking effect at death of such
holder or by applicable laws of descent and distribution, such holder's estate,
executors, administrators, personal representatives, heirs, legatees or
distributees whether or not such recipients are Members of the Immediate Family
of such holder and (c) with respect to any holder of Shares, an Affiliate of
such holder or the holders of the beneficial interests (which, for purposes of
this clause (c), shall be deemed to include, without limitation, its partners,
members or stockholders) of such holder; provided, however, that no Transferee
pursuant to the above clauses (a), (b) or (c) shall be a "Permitted Transferee"
unless such Transferee has delivered to the Company a written acknowledgment and
agreement in form and substance reasonably satisfactory to the Company that such
Shares to be received by such Transferee shall remain HTM Shares, SMTC

                                     -18-
<PAGE>

Shares or Management Shares hereunder, as the case may be, and shall continue to
be subject to all of the provisions of this Agreement and that such Transferee
shall be bound by, and shall be a party to, this Agreement as the holder of HTM
Shares, SMTC Shares or Management Shares, as the case may be; provided, further,
                                                              --------  -------
that no Transfer by any party to a Permitted Transferee shall relieve such party
of any of its obligations hereunder.

     "Person" shall mean any individual, partnership, corporation, company,
      ------
association, trust, joint venture, unincorporated organization, entity or
division, or any government, governmental department or agency or political
subdivision thereof.

     "Public Offering" shall mean a public offering and sale of Common Stock for
      ---------------
cash pursuant to an effective registration statement under the Securities Act.

     "Qualified Public Offering" shall mean a Public Offering, other than any
      -------------------------
Public Offering or sale pursuant to a registration statement on Form S-8 or
comparable form, in which the aggregate price to the public of all such common
stock sold in such offering shall exceed $55 million.

     "Reclassification" shall have the meaning set forth in the Recitals.
      ----------------

     "Registrable Securities" shall mean (a) all shares of Common Stock, (b) all
      ----------------------
shares of Common Stock issuable upon exercise of any Convertible Security and
(c) all shares of Common Stock directly or indirectly issued or issuable with
respect to the securities referred to in clauses (a) or (b) above by way of
stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization, in each case
constituting Shares. As to any particular Registrable Securities, such shares
shall cease to be Registrable Securities when (w) a registration statement with
respect to the sale of such securities shall have become effective under the
Securities Act and such securities shall have been disposed of in accordance
with such registration statement, (x) such securities shall have been
Transferred pursuant to Rule 144 or Rule 701, (y) subject to the provisions of
Section 9, such securities shall have been otherwise transferred, new
certificates for them not bearing a legend restricting further transfer shall
have been delivered by the Company and subsequent disposition of them shall not
require registration of them under the Securities Act and such securities may be
distributed without volume limitation or other restrictions on transfer under
Rule 144 (including without application of paragraphs (c), (e), (f) and (h) of
Rule 144) or (z) such securities shall have ceased to be outstanding.

     "Rule 144" shall mean Rule 144 under the Securities Act (or any successor
      --------
Rule).

     "Rule 145 Transaction" shall mean a registration on Form S-4 pursuant to
      --------------------
Rule 145 of the Securities Act (or any successor Form or provision, as
applicable).

     "Rule 701" shall mean Rule 701 under the Securities Act (or any Successor
      --------
Rule).

     "Sale" shall mean any Transfer for value.
      ----

                                     -19-
<PAGE>

     "Securities Act" shall mean the Securities Act of 1933, as in effect from
      --------------
time to time.

     "Shares" shall mean all HTM Shares, SMTC Shares, Pensar Shares and
      ------
Management Shares.

     "SMTC" shall have the meaning set forth in the Recitals.
      ----

     "SMTC - Canada" shall have the meaning set forth in the Preamble.
      -------------

     "SMTC Investors" shall have the meaning set forth in the Preamble.
      --------------

     "SMTC Nova Scotia" shall mean SMTC Nova Scotia Company.
      ----------------

     "SMTC Shares" shall mean (a) all shares of Common Stock originally issued
      -----------
to, or issued with respect to shares originally issued to, or held by, an SMTC
Investor, whenever issued, including, without limitation, all shares of Common
Stock issued pursuant to the exercise of any Convertible Securities and (b) all
Convertible Securities originally granted or issued to an SMTC Investor. As to
any particular SMTC Shares, such shares shall cease to be SMTC Shares when (w) a
registration statement with respect to the sale of such securities shall have
become effective under the Securities Act and such securities shall have been
disposed of in accordance with such registration statement, (x) such securities
shall have been Transferred pursuant to Rule 144 or Rule 701, (y) subject to the
provisions of Section 9, such securities shall have been otherwise transferred,
new certificates for them not bearing a legend restricting further transfer
shall have been delivered by the Company and subsequent disposition of them
shall not require registration of them under the Securities Act and such
securities may be distributed without volume limitation or other restrictions on
transfer under Rule 144 (including without application of paragraphs (c), (e),
(f) and (h) of Rule 144) or (z) such securities shall have ceased to be
outstanding. Except as otherwise provided in this Agreement, Convertible
Securities shall be treated as a number of Shares equal to the number of
Equivalent Shares represented by such Convertible Securities in all cases where
it is necessary to calculate the number of Shares held by any holder of SMTC
Shares.

     "Special Voting Stock" shall have the meaning set forth in the Recitals.
      --------------------

     "Stockholders" shall mean the HTM Investors, the SMTC Investors, the
      ------------
Managers and the Pensar Investors.

     "Transfer" shall mean any sale, pledge, assignment, encumbrance or other
      --------
transfer or disposition of any Shares to any other Person, whether directly,
indirectly, voluntarily, involuntarily, by operation of law, pursuant to
judicial process or otherwise.

                                     -20-
<PAGE>

13.  MISCELLANEOUS.

     13.1. Expenses of EMSIcon Transfers. In connection with any Transfer of
           -----------------------------
Shares by EMSIcon to the Beneficial Owner of such Shares, the Company will pay,
or cause one of its subsidiaries to pay, on behalf of EMSIcon or any such
Beneficial Owner, all fees payable to governmental authorities relating to
securities regulation and anti-trust enforcement in connection with, or
resulting from, such Transfer.

     13.2. Authority; Effect. Each party hereto represents and warrants to and
           -----------------
agrees with each other party that the execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby have been duly
authorized on behalf of such party and do not violate any agreement or other
instrument applicable to such party or by which its assets are bound. This
Agreement does not, and shall not be construed to, give rise to the creation of
a partnership among any of the parties hereto, or to constitute any of such
parties members of a joint venture or other association.

     13.3. Notices. Any notices and other communications required or permitted
           -------
in this Agreement shall be effective if in writing and (a) delivered personally
or (b) sent (i) by Federal Express, DHL or UPS or (ii) by registered or
certified mail, postage prepaid, in each case, addressed as follows:

          If to the Company to it:

                    c/o EMSIcon

               with a copy to:

                    SMTC Manufacturing Corporation of Canada
                    625 Hood Road
                    Markham, Ontario L3R 4N6
                    Canada
                    Attention:  President

          If to EMSIcon, to it:

                    c/o Bain Capital, Inc.
                    Two Copley Place, 7th Floor
                    Boston, MA  02116
                    Attention:  Stephen G. Pagliuca
                                Ian K. Loring

                                     -21-
<PAGE>

               with copies to:

                    Celerity Management Co., Inc.
                    11111 Santa Monica Boulevard, Suite 1127
                    Los Angeles, CA  90025
                    Attention:  Stephen E. Adamson

                    and

                    Ropes & Gray
                    One International Place
                    Boston, Massachusetts 02110
                    Attention:  Alfred O. Rose, Esq.

                    and

                    Brownstein, Hyatt & Farber, P.C.
                    410 Seventeenth Street
                    22nd Floor
                    Denver, CO 80202-4437
                    Attention:  Jacquelyn Kilmer, Esq.

     If to any other holder of Shares, to him at the address set forth in the
stock record book of the Company.

     Notice to the holder of record of any shares of capital stock shall be
deemed to be notice to the holder of such shares for all purposes hereof.

     Unless otherwise specified herein, such notices or other communications
shall be deemed effective (a) on the date received, if personally delivered, (b)
two business days after being sent by Federal Express, DHL or UPS and (c) three
business days after deposit with the U.S. Postal Service, if sent by registered
or certified mail. Each of the parties hereto shall be entitled to specify a
different address by giving notice as aforesaid to each of the other parties
hereto.

     13.4. Binding Effect, Etc. Except for restrictions on Transfer of Shares
           -------------------
set forth in other agreements, plans or other documents, this Agreement
constitutes the entire agreement of the parties with respect to its subject
matter, supersedes all prior or contemporaneous oral or written agreements or
discussions with respect to such subject matter, and shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs,
representatives, successors and assigns. Upon execution by any party, this
Agreement shall become a valid and binding obligation of such party
notwithstanding the failure of any Stockholder to execute this Agreement.

                                     -22-
<PAGE>

     13.5. Descriptive Headings. The descriptive headings of this Agreement are
           --------------------
for convenience of reference only, are not to be considered a part hereof and
shall not be construed to define or limit any of the terms or provisions hereof.

     13.6. Counterparts. This Agreement may be executed in multiple
           ------------
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one instrument.

     13.7. Severability. In the event that any provision hereof would, under
           ------------
applicable law, be invalid or unenforceable in any respect, such provision shall
be construed by modifying or limiting it so as to be valid and enforceable to
the maximum extent compatible with, and possible under, applicable law. The
provisions hereof are severable, and in the event any provision hereof should be
held invalid or unenforceable in any respect, it shall not invalidate, render
unenforceable or otherwise affect any other provision hereof.

14.  GOVERNING LAW, ETC.

     14.1. Governing Law. This Agreement shall be governed by and construed in
           -------------
accordance with the domestic substantive 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.

     14.2. Consent to Jurisdiction. Each party to this Agreement, by its
           -----------------------
execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction
of the state courts of the United States District Court for the District of
Delaware for the purpose of any action, claim, cause of action or suit (in
contract, tort or otherwise), inquiry, proceeding or investigation arising out
of or based upon this Agreement or relating to the subject matter hereof, (b)
hereby waives to the extent not prohibited by applicable law, and agrees not to
assert, and agrees not to allow any of its subsidiaries to assert, by way of
motion, as a defense or otherwise, in any such action, any claim that it is not
subject personally to the jurisdiction of the above-named courts, that its
property is exempt or immune from attachment or execution, that any such
proceeding brought in one of the above-named courts is improper, or that this
Agreement or the subject matter hereof or thereof may not be enforced in or by
such court and (c) hereby agrees not to commence or maintain any action, claim,
cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or
investigation arising out of or based upon this Agreement or relating to the
subject matter hereof or thereof other than before one of the above-named courts
nor to make any motion or take any other action seeking or intending to cause
the transfer or removal of any such action, claim, cause of action or suit (in
contract, tort or otherwise), inquiry, proceeding or investigation to any court
other than one of the above-named courts whether on the grounds of inconvenient
forum or otherwise. Notwithstanding the foregoing, to the extent that any party
hereto is or becomes a party in any litigation in connection with which it may
assert indemnification rights set forth in this agreement, the court in which
such

                                     -23-
<PAGE>

litigation is being heard shall be deemed to be included in clause (a) above.
Each party hereto hereby consents to service of process in any such proceeding
in any manner permitted by Delaware law, and agrees that service of process by
registered or certified mail, return receipt requested, at its address specified
pursuant to Section 13.3 is reasonably calculated to give actual notice.

     14.3. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW
           --------------------
WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT
WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO
TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF
ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR
INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER
HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS
CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING.
EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES
HERETO THAT THIS SECTION 14.3 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY
ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. ANY PARTY HERETO MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 14.3 WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO
TRIAL BY JURY.

     14.4. Exercise of Rights and Remedies. No delay of or omission in the
           -------------------------------
exercise of any right, power or remedy accruing to any party as a result of any
breach or default by any other party under this Agreement shall impair any such
right, power or remedy, nor shall it be construed as a waiver of or acquiescence
in any such breach or default, or of any similar breach or default occurring
later; nor shall any such delay, omission nor waiver of any single breach or
default be deemed a waiver of any other breach or default occurring before or
after that waiver.

                                     -24-
<PAGE>

                                                          SMTC Corporation
                                                          Stockholders Agreement
                                                          July __, 2000

     IN WITNESS WHEREOF, each of the undersigned has duly executed this
Agreement (or caused this Agreement to be executed on its behalf by its officer
or representative thereunto duly authorized) under seal as of the date first
above written.

THE COMPANY:                SMTC Corporation

                            By
                              --------------------------------
                              Name:
                              Title:

THE STOCKHOLDERS:           EMSIcon Investments, LLC

                            By
                              --------------------------------
                              Name:
                              Title:

                            Bain Capital Fund VI, L.P.
                            By:  Bain Capital Partners VI, L.P.,
                                 its general partner
                                 By: Bain Capital Investors VI, Inc.,
                                     its general partner

                            By
                              --------------------------------
                              Name:
                              Title:

                            Sankaty High Yield Asset Partners, L.P.

                            By
                              --------------------------------
                              Name:
                              Title:
<PAGE>

                                                          SMTC Corporation
                                                          Stockholders Agreement
                                                          July __, 2000

                            Bain Capital V Mezzanine Fund, L.P.
                            By: Bain Capital V Mezzanine Partners, L.P.,
                                its general partner
                                By: Bain Capital Investors V, Inc.,
                                    its general partner

                            By
                              --------------------------------
                              Name:
                              Title:

                            BCM Capital Partners, L.P.
                            By: Bain Capital V Mezzanine Partners, L.P.
                                its general partner
                                By: Bain Capital Investors V, Inc.,
                                    its general partner

                            By
                              --------------------------------
                              Name:
                              Title:

                            BCIP Associates II
                            BCIP Trust Associates II
                            BCIP Associates II-B
                            BCIP Associates II-C
                            By: Bain Capital, Inc.,
                                their Managing Partner

                            By
                              --------------------------------
                              Name:
                              Title:

                            Celerity EMSIcon, LLC

                            By
                              --------------------------------
                              Name:
                              Title:  An Authorized Person
<PAGE>

                                                          SMTC Corporation
                                                          Stockholders Agreement
                                                          July __, 2000

                            P.N. Walker Consulting Inc.

                            By
                              --------------------------------
                              Name:
                              Title:

                            Nichal Inc.

                            By
                              --------------------------------
                              Name:
                              Title:

                            Kilmer Electronics Group Limited

                            By
                              --------------------------------
                              Name:
                              Title:

                            ----------------------------------
                                       Gary Walker

                            ----------------------------------
                                      Philip Woodard

                            ----------------------------------
                                        Paul Walker

                            ----------------------------------
                                      Derek D'Andrade

                            ----------------------------------
                                      Edward A. Johnson
<PAGE>

                                                          SMTC Corporation
                                                          Stockholders Agreement
                                                          July __, 2000

                            ----------------------------------
                                      James Laurion

                            ----------------------------------
                                        Brad Tesch

                            ----------------------------------
                                        Richard Koss

THE PENSAR INVESTORS:

                            ----------------------------------
                                      Stanley C. Plzak

                            ----------------------------------
                                    William M. Moeller

                            ----------------------------------
                                      Richard V. Baxter

                            ----------------------------------
                                      David E. Steel

                            ----------------------------------
                                      Bruce D. Backer<PAGE>

EXHIBIT 4.7

                                    FORM OF

                         EXCHANGEABLE SHARE PROVISIONS

     The non-voting exchangeable shares of the Corporation shall have the
following rights, privileges, restrictions and conditions:

                                   ARTICLE 1
                                INTERPRETATION

1.1  For the purpose of these share provisions:

     "Affiliate" of any Person means any other Person directly or indirectly
     controlling, controlled by, or under common control of, that Person. For
     the purposes of this definition, "control" (including, with correlative
     meanings, the terms "controlled by" and "under common control of"), as
     applied to any Person, means the possession by another Person, directly or
     indirectly, of the power to direct or cause the direction of the management
     and policies of that first-mentioned Person, whether through the ownership
     of voting securities, by contract or otherwise.

     "Board of Directors" means the board of directors of the Corporation.

     "Business Day" means any day on which commercial banks are open for
     business in Toronto, Ontario, and New York, New York, other than a
     Saturday, a Sunday or a day observed as a holiday in Toronto, Ontario,
     under the laws of the Province of Ontario or the federal laws of Canada or
     in New York, New York, under the laws of the State of New York or the
     federal laws of the United States of America.

     "Call Rights" means the Liquidation Call Right, the Redemption Call Right
     and the Retraction Call Right, collectively.

     "Canadian Dollar Equivalent" means, in respect of an amount expressed in a
     currency other than Canadian dollars (the "Foreign Currency Amount") at any
     date, the product obtained by multiplying (i) the Foreign Currency Amount,
     and (ii) the noon spot exchange rate on such date for such foreign currency
     expressed in Canadian dollars as reported by the Bank of Canada or, if such
     noon spot exchange rate is not available, such spot exchange rate on such
     date for such foreign currency expressed in Canadian dollars as may be
     deemed by the Board of Directors to be appropriate for such purpose.

     "Company Liquidation Amount" has the meaning ascribed thereto in Section
     5.1 of these share provisions.

     "Company Liquidation Date" has the meaning ascribed thereto in Section 5.1
     of these share provisions.

                                      -1-
<PAGE>

     "Current Market Price" means, in respect of a share of SMTC Common Stock on
     any date, the Canadian Dollar Equivalent of the average of the closing bid
     and ask prices of the SMTC Common Stock during a period of 20 consecutive
     trading days ending not more than three trading days before such date on
     Nasdaq, or, if the shares of SMTC Common Stock are not then quoted on
     Nasdaq, on such other stock exchange or automated quotation system on which
     shares of SMTC Common Stock are listed or quoted, as the case may be, as
     may be selected by the Board of Directors for such purpose; provided,
     however, that if in the opinion of the Board of Directors the public
     distribution or trading activity of SMTC Common Stock during such period
     does not create a market that reflects the fair market value of SMTC Common
     Stock, then the Current Market Price of a share of SMTC Common Stock shall
     be determined by the Board of Directors, in good faith and in its sole
     discretion; and provided further that any such selection, opinion or
     determination by the Board of Directors shall be conclusive and binding.

     "Dividend Amount" means, at any date with respect to any Exchangeable
     Share, the full amount of all dividends, if any, declared and unpaid on
     each such Exchangeable Share held by a holder on any dividend record date
     which occurred prior to such date.

     "Exchangeable Shares" means the non-voting exchangeable shares in the
     capital of the Corporation having the rights, privileges, restrictions and
     conditions set forth in these share provisions.

     "Exchangeable Share Support Agreement" means that certain exchangeable
     share support agreement made as of     , 2000 between SMTC, SMTC Nova
     Scotia and the Corporation.

     "Exchangeable Share Voting Event" means any matter in respect of which
     holders of Exchangeable Shares are entitled to vote as shareholders of the
     Corporation, other than an Exempt Exchangeable Share Voting Event, and, for
     greater certainty, excluding any matter in respect of which holders of
     Exchangeable Shares are entitled to vote (or instruct the Trustee to vote)
     in their capacity as Beneficiaries under (and as that term is defined in)
     the Voting and Exchange Trust Agreement.

     "Exempt Exchangeable Share Voting Event" means any matter in respect of
     which holders of Exchangeable Shares are entitled to vote as shareholders
     of the Corporation in order to approve or disapprove, as applicable, any
     change to, or in the rights of the holders of, the Exchangeable Shares,
     where the approval or disapproval, as applicable, of such change would be
     required to maintain the equivalence of the Exchangeable Shares and the
     shares of SMTC Common Stock.

     "Liquidation Call Purchase Price" has the meaning ascribed thereto in
     Section 5.4 of these share provisions.

     "Liquidation Call Right" has the meaning ascribed thereto in Section 5.4 of
     these share provisions.

     "Nasdaq" means the Nasdaq National Market.

                                      -2-
<PAGE>

     "OBCA" means the Business Corporations Act (Ontario) as now in effect and
     as it may be amended from time to time.

     "Person" includes any individual, firm, partnership, joint venture, venture
     capital fund, limited liability company, unlimited liability company,
     association, trust, trustee, executor, administrator, legal personal
     representative, estate, group, body corporate, corporation, unincorporated
     association or organization, syndicate or other entity, whether or not
     having legal status.

     "Purchase Price" has the meaning ascribed thereto in Section 6.3 of these
     share provisions.

     "Redemption Call Purchase Price" has the meaning ascribed thereto in
     Section 7.4 of these share provisions.

     "Redemption Call Right" has the meaning ascribed thereto in Section 7.4 of
     these share provisions.

     "Redemption Date" means the date, if any, established by the Board of
     Directors for the redemption by the Corporation of all but not less than
     all of the outstanding Exchangeable Shares pursuant to Article 7 of these
     share provisions, which date shall be no earlier than       , 2015, unless:

     (i)  there are fewer than 500,000 Exchangeable Shares outstanding (other
          than Exchangeable Shares held by SMTC and its Affiliates), as such
          number of shares may be adjusted by the Board of Directors to give
          effect to any subdivision or consolidation of or stock dividend on the
          Exchangeable Shares, any issue or distribution of rights to acquire
          Exchangeable Shares or securities exchangeable for or convertible into
          Exchangeable Shares, any issue or distribution of other securities or
          rights or evidences of indebtedness, or assets, or any other capital
          reorganization or other transaction affecting the Exchangeable Shares,
          in which case the Board of Directors may accelerate such redemption
          date to such date prior to       , 2015 as it may determine upon at
          least 60 days' prior written notice to the registered holders of the
          Exchangeable Shares and the Trustee;

     (ii) an SMTC Control Transaction occurs, in which case, provided that the
          Board of Directors determines, in good faith and in its sole
          discretion, that it is not reasonably practicable to substantially
          replicate the terms and conditions of the Exchangeable Shares in
          connection with such SMTC Control Transaction and that the redemption
          of all but not less than all of the outstanding Exchangeable Shares is
          necessary to enable the completion of such SMTC Control Transaction in
          accordance with its terms, the Board of Directors may accelerate such
          redemption date to such date prior to      , 2015 as it may determine
          upon such number of days' prior written notice to the registered
          holders of the Exchangeable Shares and the Trustee as the Board of
          Directors may determine to be reasonably practicable in such
          circumstances;

                                      -3-
<PAGE>

    (iii) an Exchangeable Share Voting Event is proposed, in which case,
          provided that the Board of Directors has determined, in good faith and
          in its sole discretion, that it is not reasonably practicable to
          accomplish the business purpose intended by the Exchangeable Share
          Voting Event, which business purpose must be bona fide and not for the
          primary purpose of causing the occurrence of a Redemption Date, in any
          other commercially reasonable manner that does not result in an
          Exchangeable Share Voting Event, the Redemption Date shall be the
          Business Day prior to the record date for any meeting or vote of the
          holders of the Exchangeable Shares to consider the Exchangeable Share
          Voting Event, and the Board of Directors shall give such number of
          days' prior written notice of such redemption to the registered
          holders of Exchangeable Shares and the Trustee as it may determine to
          be reasonably practicable in such circumstances; or

    (iv)  an Exempt Exchangeable Share Voting Event is proposed and the holders
          of the Exchangeable Shares fail to take the necessary action at a
          meeting or other vote of holders of Exchangeable Shares to approve or
          disapprove, as applicable, the Exempt Exchangeable Share Voting Event,
          in which case the Redemption Date shall be the Business Day following
          the day on which the holders of the Exchangeable Shares failed to take
          such action, and the Board of Directors shall give such number of
          days' prior written notice of such redemption to the registered
          holders of the Exchangeable Shares and the Trustee as it may determine
          to be reasonably practicable in such circumstances;

    provided, however, that the accidental failure or omission to give any
    notice of redemption under clause (i), (ii), (iii) or (iv) above to less
    than 10% of such holders of Exchangeable Shares shall not affect the
    validity of any such redemption.

    "Redemption Price" has the meaning ascribed thereto in Section 7.1 of these
    share provisions.

    "Retracted Shares" has the meaning ascribed thereto in Section 6.1(a) of
    these share provisions.

    "Retraction Call Right" has the meaning ascribed thereto in Section 6.1(c)
    of these share provisions.

    "Retraction Date" means, subject to Section 6.1(b), the Business Day on
    which a holder of Exchangeable Shares desires to have the Corporation
    redeem the Retracted Shares as set out in these share provisions, which
    date shall not be less than 10 Business Days, nor more than 15 Business
    Days, after the date on which the Retraction Request is received by the
    Corporation.

    "Retraction Price" has the meaning ascribed thereto in Section 6.1 of these
    share provisions.

    "Retraction Request" has the meaning ascribed thereto in Section 6.1 of
    these share provisions.

                                      -4-
<PAGE>

     "SMTC" means SMTC Corporation, a corporation existing under the laws of the
     State of Delaware, and any successor corporation thereto.

     "SMTC Common Stock" means the shares of common stock, par value US$0.01, in
     the capital of SMTC, and any other securities into which such shares may be
     changed, including shares into which SMTC Common Stock may be changed
     consequent upon an amalgamation, merger, reorganization or other
     transaction affecting the SMTC Common Stock.

     "SMTC Control Transaction" means any merger, amalgamation, tender offer,
     material sale of shares or rights or interests therein or thereto or
     similar transactions involving, for or by SMTC, or any proposal to take any
     such action.

     "SMTC Dividend Declaration Date" means the date on which the board of
     directors of SMTC declares any dividend on the SMTC Common Stock.

     "SMTC Nova Scotia" means SMTC Nova Scotia Company, an unlimited company
     existing under the laws of the Province of Nova Scotia and a wholly-owned
     subsidiary of SMTC.

     "Subdivision" has the meaning ascribed thereto in Section 3.2 of these
     share provisions.

     "SMTC Nova Scotia Call Notice" has the meaning ascribed thereto in Section
     6.3 of these share provisions.

     "Transfer Agent" means CIBC Mellon Trust Company or such other Person as
     may from time to time be appointed by the Corporation as the registrar and
     transfer agent for the Exchangeable Shares.

     "Trustee" means CIBC Mellon Trust Company or such other Person as may from
     time to time be appointed as the trustee under the Voting and Exchange
     Trust Agreement, being a corporation organized and existing under the laws
     of Canada and authorized to carry on the business of a trust company in all
     the provinces of Canada, and any successor trustee appointed under the
     Voting and Exchange Trust Agreement.

     "Voting and Exchange Trust Agreement" means that certain voting and
     exchange trust agreement entered into between SMTC, SMTC Nova Scotia, the
     Corporation and the Trustee on        , 2000.

                                   ARTICLE 2
                        RANKING OF EXCHANGEABLE SHARES

2.1 The Exchangeable Shares shall be entitled to a preference over the common
shares of the Corporation and any other shares ranking junior to the
Exchangeable Shares with respect to the payment of dividends and the
distribution of assets in the event of the liquidation, dissolution or
winding-up of the Corporation, whether voluntary or involuntary, or any other
distribution of the assets of the Corporation among its shareholders for the
purpose of

                                      -5-
<PAGE>

winding-up its affairs. The Exchangeable Shares will rank junior to the Class C
preferred shares of the Corporation and any other shares ranking prior to the
Exchangeable Shares.

                                    ARTICLE 3
                                    DIVIDENDS

3.1 Subject to Section 3.2 below, a holder of an Exchangeable Share shall be
entitled to receive and the Board of Directors shall, subject to applicable law,
on each SMTC Dividend Declaration Date, declare a dividend on each Exchangeable
Share:

     (a)  in the case of a cash dividend declared on the SMTC Common Stock, in
          an amount in cash for each Exchangeable Share in U.S. dollars, or, at
          the option of the Corporation, the Canadian Dollar Equivalent thereof
          on the SMTC Dividend Declaration Date, in each case, corresponding to
          the cash dividend declared on each share of SMTC Common Stock;

     (b)  in the case of a stock dividend declared on the SMTC Common Stock to
          be paid in SMTC Common Stock, in such number of Exchangeable Shares
          for each Exchangeable Share as is equal to the number of shares of
          SMTC Common Stock to be paid on each share of SMTC Common Stock; or

     (c)  in the case of a dividend declared on the SMTC Common Stock in
          property other than cash or SMTC Common Stock, in such type and amount
          of property for each Exchangeable Share as is the same as or
          economically equivalent to (as determined by the Board of Directors
          and as contemplated by Section 3.6 hereof) the type and amount of
          property declared as a dividend on each share of SMTC Common Stock.

3.2 In the case of a stock dividend declared on the SMTC Common Stock to be paid
in SMTC Common Stock, in lieu of declaring a corresponding stock dividend on the
Exchangeable Shares (as contemplated by Section 3.1(b) hereof), the Board of
Directors may, by resolution, in its discretion and subject to applicable law,
subdivide, redivide or change (each, a "Subdivision") each issued and unissued
Exchangeable Share on the basis that each Exchangeable Share before the
Subdivision becomes that number of Exchangeable Shares as is equal to the sum of
(i) one; and (ii) the number of shares of SMTC Common Stock to be paid as a
stock dividend on each share of SMTC Common Stock. In such instance, and
notwithstanding any other provision hereof, such Subdivision shall become
effective on the effective date specified in Section 3.4 hereof without any
further act or formality on the part of the Board of Directors or of the holders
of Exchangeable Shares. For greater certainty, no approval of the holders of
Exchangeable Shares to an amendment to the articles of the Corporation shall be
required to give effect to such Subdivision.

3.3 Cheques of the Corporation payable at par at any branch of the bankers of
the Corporation shall be issued in respect of any cash dividends contemplated by
Section 3.1(a) hereof and the sending of such a cheque to each holder of an
Exchangeable Share shall satisfy the cash dividend represented thereby unless
the cheque is not paid on presentation. Subject to applicable law, certificates
registered in the name of the registered holder of Exchangeable

                                      -6-
<PAGE>

Shares shall be issued or transferred in respect of any stock dividends
contemplated by Section 3.1(b) hereof or any Subdivision contemplated by Section
3.2 hereof and the sending of such a certificate to each holder of an
Exchangeable Share shall satisfy the stock dividend or Subdivision represented
thereby. Such other type and amount of property in respect of any dividends
contemplated by Section 3.1(c) hereof shall be issued, distributed or
transferred by the Corporation in such manner as it shall determine and the
issuance, distribution or transfer thereof by the Corporation to each holder of
an Exchangeable Share shall satisfy the dividend represented thereby. No holder
of an Exchangeable Share shall be entitled to recover by action or other legal
process against the Corporation any dividend that is represented by a cheque
that has not been duly presented to the Corporation's bankers for payment or
that otherwise remains unclaimed for a period of six years from the date on
which such dividend was payable.

3.4 The record date for the determination of the holders of Exchangeable Shares
entitled to receive payment of, and the payment date for, any dividend declared
on the Exchangeable Shares under Section 3.1 hereof shall be the same dates as
the record date and payment date, respectively, for the corresponding dividend
declared on the SMTC Common Stock. The record date for the determination of the
holders of Exchangeable Shares entitled to receive Exchangeable Shares in
connection with any Subdivision of Exchangeable Shares under Section 3.2 hereof
and the effective date of such Subdivision shall be the same dates as the record
date and payment date, respectively, for the corresponding stock dividend
declared on the SMTC Common Stock.

3.5 If, on any payment date for any dividends declared on the Exchangeable
Shares under Section 3.1 hereof, the dividends are not paid in full on all of
the Exchangeable Shares then outstanding, any such dividends that remain unpaid
shall be paid on a subsequent date or dates determined by the Board of Directors
on which the Corporation shall have sufficient moneys, assets or property
properly applicable to the payment of such dividends.

3.6 The Board of Directors shall determine, in good faith and in its sole
discretion, economic equivalence for the purposes of Sections 3.1 and 3.2
hereof, and each such determination shall be conclusive and binding on the
Corporation and its shareholders. In making each such determination, the
following factors shall, without excluding other factors determined by the Board
of Directors to be relevant, be considered by the Board of Directors:

     (a)  in the case of any stock dividend or other distribution payable in
          shares of SMTC Common Stock, the number of such shares issued in
          proportion to the number of shares of SMTC Common Stock previously
          outstanding;

     (b)  in the case of the issuance or distribution of any rights, options or
          warrants to subscribe for or purchase shares of SMTC Common Stock (or
          securities exchangeable for or convertible into or carrying rights to
          acquire shares of SMTC Common Stock), the relationship between the
          exercise price of each such right, option or warrant and the Current
          Market Price of a share of SMTC Common Stock;

     (c)  in the case of the issuance or distribution of any other form of
          property (including, without limitation, any shares or securities of
          SMTC of any class

                                      -7-
<PAGE>

          other than shares of SMTC Common Stock, any rights, options or
          warrants other than those referred to in Section 3.6(b) above, any
          evidences of indebtedness of SMTC or any assets of SMTC), the
          relationship between the fair market value (as determined by the Board
          of Directors) of such property to be issued or distributed with
          respect to each outstanding share of SMTC Common Stock and the Current
          Market Price of a share of SMTC Common Stock;

     (d)  in the case of any subdivision, redivision or change of the
          then-outstanding shares of SMTC Common Stock into a greater number of
          shares of SMTC Common Stock or the reduction, combination,
          consolidation or change of the then-outstanding shares of SMTC Common
          Stock into a lesser number of shares of SMTC Common Stock or any
          amalgamation, merger, reorganization or other transaction affecting
          shares of SMTC Common Stock, the effect thereof upon the
          then-outstanding shares of SMTC Common Stock; and

     (e)  in all such cases, the general taxation consequences of the relevant
          event to holders of Exchangeable Shares to the extent that such
          consequences may differ from the taxation consequences to holders of
          shares of SMTC Common Stock as a result of differences between
          taxation laws of Canada and the United States (except for any
          differing consequences arising as a result of differing marginal
          taxation rates and without regard to the individual circumstances of
          holders of Exchangeable Shares).

                                   ARTICLE 4
                             CERTAIN RESTRICTIONS

4.1 So long as any of the Exchangeable Shares are outstanding, the Corporation
shall not at any time without, but may at any time with, the approval of the
holders of the Exchangeable Shares given as specified in Section 10.2 of these
share provisions:

     (a)  pay any dividends on the common shares of the Corporation or on any
          other shares ranking junior to the Exchangeable Shares, other than
          stock dividends payable in common shares of the Corporation, or any
          such other shares ranking junior to the Exchangeable Shares, as the
          case may be;

     (b)  redeem, purchase or make any capital distribution in respect of the
          common shares of the Corporation or any other shares ranking junior to
          the Exchangeable Shares;

     (c)  redeem or purchase any other shares of the Corporation ranking equally
          with the Exchangeable Shares with respect to the payment of dividends
          or on any liquidation distribution;

     (d)  issue any Exchangeable Shares; provided that the Corporation may at
          any time, with or without such approval, issue Exchangeable Shares (i)
          pursuant to any shareholder rights plan or equity incentive plan
          adopted by the Corporation, (ii) by way of stock dividend to the
          holders of Exchangeable Shares contemplated

                                      -8-
<PAGE>

          by Section 3.1 hereof, or (iii) by way of any subdivision of
          Exchangeable Shares contemplated by Section 3.2 hereof; or

     (e)  issue any shares of the Corporation ranking equally with, or superior
          to, the Exchangeable Shares other than by way of stock dividend to the
          holders of such Exchangeable Shares.

     The restrictions in Sections 4.1(a), 4.1(b), 4.1(c) and 4.1(d) above shall
not apply at any time when the dividends on the outstanding Exchangeable Shares
corresponding to dividends declared and paid on the SMTC Common Stock shall have
been declared and paid in full.

                                   ARTICLE 5
                DISTRIBUTION ON LIQUIDATION of THE CORPORATION

5.1 In the event of the liquidation, dissolution or winding-up of the
Corporation or any other distribution of the assets of the Corporation among its
shareholders for the purpose of winding-up its affairs, subject to the exercise
by SMTC Nova Scotia of the Liquidation Call Right, a holder of Exchangeable
Shares shall be entitled, subject to applicable law, to receive from the assets
of the Corporation in respect of each Exchangeable Share held by such holder on
the effective date (the "Company Liquidation Date") of such liquidation,
dissolution or winding-up, before any distribution of any part of the assets of
the Corporation among the holders of the common shares of the Corporation or any
other shares ranking junior to the Exchangeable Shares, an amount per share
equal to the Current Market Price of a share of SMTC Common Stock on the last
Business Day prior to the Company Liquidation Date (the "Company Liquidation
Amount"), which shall be satisfied in full by the Corporation causing to be
delivered to such holder one share of SMTC Common Stock, together with the
Dividend Amount.

5.2 On or promptly after the Company Liquidation Date, the Corporation shall
cause to be delivered to the holders of the Exchangeable Shares the Company
Liquidation Amount for each such Exchangeable Share upon presentation and
surrender of the certificates representing such Exchangeable Shares, together
with such other documents and instruments as may be required to effect a
transfer of Exchangeable Shares under the OBCA and the articles and bylaws of
the Corporation and such additional documents and instruments as the Transfer
Agent, SMTC or the Corporation may reasonably require, at the registered office
of the Corporation or at any office of the Transfer Agent as may be specified by
the Corporation by notice to the holders of the Exchangeable Shares. Payment of
the total Company Liquidation Amount for such Exchangeable Shares shall be made
by delivery to each holder, at the address of the holder recorded in the
securities register of the Corporation for the Exchangeable Shares or by holding
for pick-up by the holder at the registered office of the Corporation or at any
office of the Transfer Agent as may be specified by the Corporation by notice to
the holders of Exchangeable Shares, on behalf of the Corporation, certificates
representing shares of SMTC Common Stock and a cheque of the Corporation payable
at par at any branch of the bankers of the Corporation in respect of the
remaining portion, if any, of the total Company Liquidation Amount (without
interest), in each case, less any amounts withheld pursuant to Section 12.3. On
and after the Company Liquidation Date, the holders of the Exchangeable Shares
shall cease to be holders of such Exchangeable Shares and shall not be entitled
to exercise any of the

                                      -9-
<PAGE>

rights of holders in respect thereof, other than the right to receive their
proportionate part of the total Company Liquidation Amount, unless payment of
the total Company Liquidation Amount for such Exchangeable Shares shall not be
made upon presentation and surrender of share certificates in accordance with
the foregoing provisions, in which case the rights of the holders shall remain
unaffected until the total Company Liquidation Amount has been paid in the
manner hereinbefore provided. The Corporation shall have the right at any time
after the Company Liquidation Date to deposit or cause to be deposited in a
custodial account with any chartered bank or trust company in Canada the total
Company Liquidation Amount in respect of the Exchangeable Shares represented by
certificates that have not at the Company Liquidation Date been surrendered by
the holders thereof. Upon such deposit being made, the rights of the holders of
Exchangeable Shares after such deposit shall be limited to receiving their
proportionate part of the total Company Liquidation Amount (without interest),
in each case, less any amounts withheld pursuant to Section 12.3 for such
Exchangeable Shares so deposited, against presentation and surrender of the said
certificates held by them, respectively, in accordance with the foregoing
provisions. Upon such payment or deposit of the total Company Liquidation
Amount, the holders of the Exchangeable Shares shall thereafter be considered
and deemed for all purposes to be holders of the SMTC Common Stock delivered to
them or to the custodian on their behalf.

5.3 After the Corporation has satisfied its obligations to pay the holders of
the Exchangeable Shares the Company Liquidation Amount per Exchangeable Share
pursuant to Section 5.1 of these share provisions, such holders shall not be
entitled to share in any further distribution of the assets of the Corporation.

5.4 SMTC Nova Scotia shall have the overriding right (the "Liquidation Call
Right"), in the event of and notwithstanding the proposed liquidation,
dissolution or winding-up of SMTC Canada pursuant to these share provisions, to
purchase from all but not less than all of the holders of Exchangeable Shares
(other than any holder of Exchangeable Shares which is SMTC or an Affiliate of
SMTC) on the Company Liquidation Date all but not less than all of the
Exchangeable Shares held by each such holder on payment by SMTC Nova Scotia of
an amount per share (the "Liquidation Call Purchase Price") equal to the Current
Market Price of a share of SMTC Common Stock on the last Business Day prior to
the Company Liquidation Date, which shall be satisfied in full by SMTC Nova
Scotia causing to be delivered to such holder one share of SMTC Common Stock,
plus, to the extent not paid by the Corporation, an additional amount equivalent
to the Dividend Amount. In the event of the exercise of the Liquidation Call
Right by SMTC Nova Scotia in accordance with these share provisions, each holder
of Exchangeable Shares (other than SMTC or any Affiliate of SMTC) shall be
obligated to sell all of the Exchangeable Shares held by the holder to SMTC Nova
Scotia on the Company Liquidation Date and, upon payment by SMTC Nova Scotia to
the holder of the Liquidation Call Purchase Price for each such share, the
Corporation shall have no obligation to pay the Company Liquidation Amount of
such shares so purchased by SMTC Nova Scotia. If SMTC Nova Scotia does not
exercise the Liquidation Call Right in the manner described above, on the
Company Liquidation Date the holders of the Exchangeable Shares will be entitled
to receive in exchange therefor the Company Liquidation Amount otherwise payable
by the Corporation in connection with the liquidation, dissolution or winding-up
of the Corporation pursuant to this Article 5.

                                     -10-
<PAGE>

5.5 To exercise the Liquidation Call Right, SMTC Nova Scotia must notify the
Transfer Agent, as agent for the holders of Exchangeable Shares, and the
Corporation of SMTC Nova Scotia's intention to exercise such right at least 45
days before the Company Liquidation Date in the case of a voluntary liquidation,
dissolution or winding-up of the Corporation and at least five Business Days
before the Company Liquidation Date in the case of an involuntary liquidation,
dissolution or winding-up of the Corporation. The Transfer Agent will notify the
holders of Exchangeable Shares as to whether or not SMTC Nova Scotia has
exercised the Liquidation Call Right forthwith after the expiry of the period
during which the same may be exercised by SMTC Nova Scotia. If SMTC Nova Scotia
exercises the Liquidation Call Right, then on the Company Liquidation Date, SMTC
Nova Scotia will purchase and holders will sell all of the Exchangeable Shares
then outstanding for a price per share equal to the Liquidation Call Purchase
Price.

5.6 For the purposes of completing the purchase of the Exchangeable Shares
pursuant to the exercise of the Liquidation Call Right, SMTC Nova Scotia shall
deposit with the Transfer Agent, on or before the Company Liquidation Date,
certificates representing the aggregate number of shares of SMTC Common Stock
deliverable by SMTC Nova Scotia pursuant to such exercise and a cheque or
cheques of SMTC Nova Scotia payable at par at any branch of the bankers of SMTC
Nova Scotia representing the aggregate Dividend Amount in payment of the total
Liquidation Call Purchase Price (without interest), less any amounts withheld
pursuant to Section 12.3. Provided that SMTC Nova Scotia has complied with the
immediately preceding sentence, on and after the Company Liquidation Date, the
rights of each holder of Exchangeable Shares will be limited to receiving such
holder's proportionate part of the total Liquidation Call Purchase Price payable
by SMTC Nova Scotia upon presentation and surrender by the holder of
certificates representing the Exchangeable Shares held by such holder and the
holder shall on and after the Company Liquidation Date be considered and deemed
for all purposes to be the holder of the shares of SMTC Common Stock to which it
is entitled pursuant to the exercise of the Liquidation Call Right. Upon
surrender to the Transfer Agent of a certificate or certificates representing
Exchangeable Shares, together with such other documents and instruments as may
be required to effect a transfer of Exchangeable Shares under the OBCA and the
articles and by-laws of the Corporation and such additional documents and
instruments as the Transfer Agent may reasonably require, the holder of such
surrendered certificate or certificates shall be entitled to receive in exchange
therefor, and the Transfer Agent on behalf of SMTC Nova Scotia shall deliver to
such holder, certificates representing the number of shares of SMTC Common Stock
to which the holder is entitled pursuant to the exercise of the Liquidation Call
Right and a cheque or cheques of SMTC Nova Scotia payable at par at any branch
of the bankers of SMTC Nova Scotia in payment of the remaining portion, if any,
of the total Liquidation Call Purchase Price (without interest), less any
amounts withheld pursuant to Section 12.3.

                                   ARTICLE 6
                  RETRACTION OF EXCHANGEABLE SHARES BY HOLDER

6.1 A holder of Exchangeable Shares shall be entitled at any time, subject to
the exercise by SMTC Nova Scotia of the Retraction Call Right and otherwise upon
compliance with the provisions of this Article 6, to require the Corporation to
redeem any or all of the Exchangeable Shares registered in the name of such
holder for an amount per share equal to the Current

                                     -11-
<PAGE>

Market Price of a share of SMTC Common Stock on the last Business Day prior to
the Retraction Date (the "Retraction Price"), which shall be satisfied in full
by the Corporation causing to be delivered to such holder one share of SMTC
Common Stock for each Exchangeable Share presented and surrendered by the
holder, together with, on the payment date therefor, the Dividend Amount. To
effect such redemption, the holder shall present and surrender at the registered
office of the Corporation or at any office of the Transfer Agent as may be
specified by the Corporation by notice to the holders of Exchangeable Shares the
certificate or certificates representing the Exchangeable Shares which the
holder desires to have the Corporation redeem, together with such other
documents and instruments as may be required to effect a transfer of
Exchangeable Shares under the OBCA and the articles and bylaws of the
Corporation and such additional documents and instruments as the Transfer Agent,
SMTC or the Corporation may reasonably require, and together with a duly
executed statement (the "Retraction Request") in the form of Schedule "A" hereto
or in such other form as may be acceptable to the Corporation:

     (a)  specifying that the holder desires to have all or any number specified
          therein of the Exchangeable Shares represented by such certificate or
          certificates (the "Retracted Shares") redeemed by the Corporation;

     (b)  stating the Retraction Date, provided that in the event that a
          Retraction Date is not specified by the holder in the Retraction
          Request, the Retraction Date shall be deemed to be the fifteenth
          Business Day after the date on which the Retraction Request is
          received by the Corporation; and

     (c)  acknowledging the overriding right (the "Retraction Call Right") of
          SMTC Nova Scotia to purchase all but not less than all of the
          Retracted Shares directly from the holder and that the Retraction
          Request shall be deemed to be a revocable offer by the holder to sell
          all but not less than all of the Retracted Shares to SMTC Nova Scotia
          in accordance with the Retraction Call Right on the terms and
          conditions set out in Section 6.3 of these share provisions.

6.2 Subject to the exercise by SMTC Nova Scotia of the Retraction Call Right,
upon receipt by the Corporation or the Transfer Agent in the manner specified in
Section 6.1 of a certificate or certificates representing the number of
Retracted Shares, together with a Retraction Request, and provided that the
Retraction Request is not revoked by the holder in the manner specified in
Section 6.7, the Corporation shall redeem the Retracted Shares effective at the
close of business on the Retraction Date and shall cause to be delivered to such
holder the total Retraction Price with respect to such shares, provided that all
declared and unpaid dividends for which the record date has occurred prior to
the Retraction Date shall be paid to the holder on the payment date for such
dividends. If only a part of the Exchangeable Shares represented by any
certificate is redeemed (or purchased by SMTC Nova Scotia pursuant to the
Retraction Call Right), a new certificate for the balance of such Exchangeable
Shares shall be issued to the holder at the expense of the Corporation.

6.3 Upon receipt by the Corporation of a Retraction Request, the Corporation
shall immediately notify SMTC Nova Scotia thereof. In order to exercise the
Retraction Call Right, SMTC Nova Scotia must notify the Corporation of its
determination to do so (the

                                     -12-
<PAGE>

"SMTC Nova Scotia Call Notice") within five Business Days of notification to
SMTC Nova Scotia by the Corporation of the receipt by the Corporation of the
Retraction Request. If SMTC Nova Scotia does not so notify the Corporation
within such five Business Day period, the Corporation will notify the holder as
soon as possible thereafter that SMTC Nova Scotia will not exercise the
Retraction Call Right. If SMTC Nova Scotia delivers the SMTC Nova Scotia Call
Notice within such five Business Day period, and provided that the Retraction
Request is not revoked by the holder in the manner specified in Section 6.7, the
Retraction Request shall thereupon be considered only to be an offer by the
holder to sell the Retracted Shares to SMTC Nova Scotia in accordance with the
Retraction Call Right. In such event, the Corporation shall not redeem the
Retracted Shares and SMTC Nova Scotia shall purchase from such holder and such
holder shall sell to SMTC Nova Scotia on the Retraction Date the Retracted
Shares for a purchase price (the "Purchase Price") per share equal to the
Retraction Price per share, plus, on the designated payment date therefor, to
the extent not paid by the Corporation on the designated payment date therefor,
an additional amount equivalent to the Dividend Amount. To the extent that SMTC
Nova Scotia pays the Dividend Amount in respect of the Retracted Shares, the
Corporation shall no longer be obligated to pay any declared and unpaid
dividends on such Retracted Shares. For the purposes of completing a purchase
pursuant to the Retraction Call Right, SMTC Nova Scotia shall deposit with the
Transfer Agent, on or before the Retraction Date, certificates representing
shares of SMTC Common Stock registered in the name of the holder or in such
other name as the holder may request, and a cheque or cheques of SMTC Nova
Scotia payable at par at any branch of the bankers of SMTC Nova Scotia
representing the aggregate Dividend Amount (without interest), less any amounts
pursuant to Section 12.3. Provided that SMTC Nova Scotia has complied with the
immediately preceding sentence, the closing of the purchase and sale of the
Retracted Shares pursuant to the Retraction Call Right shall be deemed to have
occurred as at the close of business on the Retraction Date and, for greater
certainty, no redemption by the Corporation of such Retracted Shares shall take
place on the Retraction Date. In the event that SMTC Nova Scotia does not
deliver an SMTC Nova Scotia Call Notice within such five Business Day period,
and provided that the Retraction Request is not revoked by the holder in the
manner specified in Section 6.7, the Corporation shall redeem the Retracted
Shares on the Retraction Date and in the manner otherwise contemplated in this
Article 6.

6.4 The Corporation or SMTC Nova Scotia, as the case may be, shall deliver or
cause the Transfer Agent to deliver to the relevant holder, at the address of
the holder recorded in the securities register of the Corporation for the
Exchangeable Shares or at the address specified in the holder's Retraction
Request or by holding for pick-up by the holder at the registered office of the
Corporation or at any office of the Transfer Agent as may be specified by the
Corporation by notice to the holders of Exchangeable Shares, certificates
representing shares of SMTC Common Stock registered in the name of the holder or
in such other name as the holder may request, and, if applicable and on or
before the payment date therefor, a cheque payable at par at any branch of the
bankers of the Corporation or SMTC Nova Scotia, as applicable, representing the
aggregate Dividend Amount in payment of the total Retraction Price or the total
Purchase Price, as the case may be (without interest), in each case, less any
amounts withheld pursuant to Section 12.3, and such delivery of such
certificates and cheques on behalf of the Corporation or by SMTC Nova Scotia, as
the case may be, or by the Transfer Agent shall be deemed to be payment of and
shall satisfy and discharge all liability for the total Retraction

                                     -13-
<PAGE>

Price or total Purchase Price, as the case may be, to the extent that the same
is represented by such share certificates and cheques.

6.5 On and after the close of business on the Retraction Date, the holder of the
Retracted Shares shall cease to be a holder of such Retracted Shares and shall
not be entitled to exercise any of the rights of a holder in respect thereof,
other than the right to receive its proportionate part of the total Retraction
Price or total Purchase Price, as the case may be, unless upon presentation and
surrender of certificates in accordance with the foregoing provisions, payment
of the total Retraction Price or the total Purchase Price, as the case may be,
shall not be made as provided in Section 6.4, in which case the rights of such
holder shall remain unaffected until the total Retraction Price or the total
Purchase Price, as the case may be, has been paid in the manner hereinbefore
provided. On and after the close of business on the Retraction Date, provided
that presentation and surrender of certificates and payment of the total
Retraction Price or the total Purchase Price, as the case may be, has been made
in accordance with the foregoing provisions, the holder of the Retracted Shares
so redeemed by the Corporation or purchased by SMTC Nova Scotia shall thereafter
be considered and deemed for all purposes to be a holder of the shares of SMTC
Common Stock delivered to it.

6.6 Notwithstanding any other provision of this Article 6, the Corporation shall
not be obligated to redeem Retracted Shares specified by a holder in a
Retraction Request to the extent that such redemption of Retracted Shares would
be contrary to solvency requirements or other provisions of applicable law. If
the Corporation believes that on any Retraction Date it would not be permitted
by any of such provisions to redeem the Retracted Shares tendered for redemption
on such date, and provided that SMTC Nova Scotia shall not have exercised the
Retraction Call Right with respect to the Retracted Shares, the Corporation
shall only be obligated to redeem Retracted Shares specified by a holder in a
Retraction Request to the extent of the maximum number that may be so redeemed
(rounded down to the nearest whole number of shares) as would not be contrary to
such provisions and shall notify the holder and the Trustee at least two
Business Days prior to the Retraction Date as to the number of Retracted Shares
which will not be redeemed by the Corporation. In any case in which the
redemption by the Corporation of Retracted Shares would be contrary to solvency
requirements or other provisions of applicable law, the Corporation shall redeem
the maximum number of Exchangeable Shares which the Board of Directors
determines the Corporation is, on the Retraction Date, permitted to redeem,
which shall be selected as nearly as may be pro rata (disregarding fractions) in
proportion to the total number of Exchangeable Shares tendered for retraction by
holders thereof and the Corporation shall issue to each holder of Retracted
Shares a new certificate, at the expense of the Corporation, representing the
Retracted Shares not redeemed by the Corporation pursuant to Section 6.2.
Provided that the Retraction Request is not revoked by the holder in the manner
specified in Section 6.7 and provided further that SMTC Nova Scotia shall not
have exercised the Retraction Call Right with respect to the Retracted Shares,
the holder of any such Retracted Shares not redeemed by the Corporation pursuant
to Section 6.2 as a result of solvency requirements or other provisions of
applicable law shall be deemed, by giving the Retraction Request, to have
instructed the Trustee to require SMTC to purchase such Retracted Shares from
such holder on the Retraction Date or as soon as practicable thereafter on
payment by SMTC to such holder of the Purchase Price for each such Retracted
Share, all as more specifically provided in the Voting and Exchange Trust
Agreement.

                                     -14-
<PAGE>

6.7 A holder of Retracted Shares may by notice in writing given by the holder to
the Corporation before the close of business on the Business Day immediately
preceding the Retraction Date, withdraw its Retraction Request, in which event
such Retraction Request shall be null and void and, for greater certainty, the
revocable offer constituted by the Retraction Request to sell the Retracted
Shares to SMTC Nova Scotia and the instruction to the Trustee to require SMTC to
purchase such Retracted Shares shall each be deemed to have been revoked.

                                   ARTICLE 7
                       REDEMPTION OF EXCHANGEABLE SHARES

7.1 Subject to applicable law, and provided that SMTC Nova Scotia has not
exercised the Redemption Call Right, the Corporation shall, on the Redemption
Date, redeem all but not less than all of the then outstanding Exchangeable
Shares for an amount per share equal to the Current Market Price of one share of
SMTC Common Stock on the last Business Day prior to the Redemption Date (the
"Redemption Price"), which shall be satisfied in full by the Corporation causing
to be delivered to each holder of Exchangeable Shares one share of SMTC Common
Stock for each Exchangeable Share held by such holder, together with the
Dividend Amount.

7.2 In any case of a redemption of Exchangeable Shares under this Article 7, the
Corporation shall, at least 60 days before the Redemption Date (other than a
Redemption Date established in connection with an SMTC Control Transaction, an
Exchangeable Share Voting Event or an Exempt Exchangeable Share Voting Event),
send or cause to be sent to each holder of Exchangeable Shares a notice in
writing of the redemption by the Corporation or the purchase by SMTC Nova Scotia
under the Redemption Call Right, as the case may be, of the Exchangeable Shares
held by such holder. In the case of a Redemption Date established in connection
with an SMTC Control Transaction, an Exchangeable Share Voting Event or an
Exempt Exchangeable Share Voting Event, the written notice of redemption by the
Corporation or the purchase by SMTC Nova Scotia under the Redemption Call Right
will be sent on or before the Redemption Date, on as many days' prior written
notice as may be determined by the Board of Directors to be reasonably
practicable in the circumstances. In any such case, such notice shall set out
the Redemption Price, as the case may be, the Redemption Date and, if
applicable, particulars of the Redemption Call Right.

7.3 On or after the Redemption Date and subject to the exercise by SMTC Nova
Scotia of the Redemption Call Right, the Corporation shall cause to be delivered
to the holders of the Exchangeable Shares to be redeemed the Redemption Price
for each such Exchangeable Share, together with the Dividend Amount, upon
presentation and surrender at the registered office of the Corporation or at any
office of the Transfer Agent as may be specified by the Corporation in such
notice of the certificates representing such Exchangeable Shares, together with
such other documents and instruments as may be required to effect a transfer of
Exchangeable Shares under the OBCA and the articles and bylaws of the
Corporation and such additional documents and instruments as the Transfer Agent,
SMTC or the Corporation may reasonably require. Payment of the total Redemption
Price for such Exchangeable Shares, together with payment of such dividends,
shall be made by delivery to each holder, at the address of the holder recorded
in the securities register of the Corporation or by holding for pick-up by the
holder at the registered office of the Corporation or at any office of the
Transfer Agent as may

                                     -15-
<PAGE>

be specified by the Corporation in such notice, on behalf of the Corporation,
certificates representing shares of SMTC Common Stock and, if applicable, a
cheque of the Corporation payable at par at any branch of the bankers of the
Corporation in payment of any such dividends (without interest), in each case,
less any amounts withheld pursuant to Section 12.3. On and after the Redemption
Date, the holders of the Exchangeable Shares called for redemption shall cease
to be holders of such Exchangeable Shares and shall not be entitled to exercise
any of the rights of holders in respect thereof, other than the right to receive
their proportionate part of the total Redemption Price and any such dividends,
unless payment of the total Redemption Price and any such dividends for such
Exchangeable Shares shall not be made upon presentation and surrender of
certificates in accordance with the foregoing provisions, in which case the
rights of the holders shall remain unaffected until the total Redemption Price
and any such dividends have been paid in the manner hereinbefore provided. The
Corporation shall have the right at any time after the sending of a notice of
its intention to redeem the Exchangeable Shares as aforesaid to deposit or cause
to be deposited the total Redemption Price for and the full amount of such
dividends on (except as provided in the preceding sentence) the Exchangeable
Shares so called for redemption, or of such Exchangeable Shares represented by
certificates that have not at the date of such deposit been surrendered by the
holders thereof in connection with such redemption, in a custodial account with
any chartered bank or trust company in Canada named in such notice (without
interest), less any amounts withheld pursuant to Section 12.3. Upon the later of
such deposit being made and the Redemption Date, the Exchangeable Shares in
respect whereof such deposit shall have been made shall be redeemed and the
rights of the holders thereof after such deposit or Redemption Date, as the case
may be, shall be limited to receiving their proportionate part of the total
Redemption Price and such dividends for such Exchangeable Shares so deposited
(without interest), against presentation and surrender of the said certificates
held by them, respectively, in accordance with the foregoing provisions. Upon
such payment or deposit of the total Redemption Price and the full amount of
such dividends, the holders of the Exchangeable Shares shall thereafter be
considered and deemed for all purposes to be holders of the SMTC Common Stock
delivered to them or to the custodian on their behalf.

7.4 SMTC Nova Scotia shall have the overriding right (the "Redemption Call
Right"), notwithstanding the proposed redemption of Exchangeable Shares by the
Corporation pursuant to these share provisions, to purchase from all but not
less than all of the holders of Exchangeable Shares (other than any holder of
Exchangeable Shares which is SMTC or an Affiliate of SMTC) on the Redemption
Date all but not less than all of the Exchangeable Shares held by each such
holder on payment by SMTC Nova Scotia to each holder of an amount per
Exchangeable Share (the "Redemption Call Purchase Price") equal to the Current
Market Price of a share of SMTC Common Stock on the last Business Day prior to
the Redemption Date, which shall be satisfied in full by SMTC Nova Scotia
causing to be delivered to such holder one share of SMTC Common Stock, plus, to
the extent not paid by the Corporation, an additional amount equivalent to the
Dividend Amount. In the event of the exercise of the Redemption Call Right by
SMTC Nova Scotia, each holder shall be obligated to sell all of the Exchangeable
Shares held by the holder to SMTC Nova Scotia on the Redemption Date and, upon
payment by SMTC Nova Scotia to the holder of the Redemption Call Purchase Price
for each such share, the Corporation shall have no obligation to redeem such
shares so purchased by SMTC Nova Scotia or to pay the Redemption Price in
respect thereof. If SMTC Nova Scotia does not exercise the Redemption Call Right
in the manner described above, on the

                                     -16-
<PAGE>

Redemption Date the holders of the Exchangeable Shares will be entitled to
receive in exchange therefor the Redemption Price otherwise payable by the
Corporation in connection with the redemption of Exchangeable Shares pursuant to
this Article 7.

7.5 To exercise the Redemption Call Right, SMTC Nova Scotia must notify the
Transfer Agent, as agent for the holders of Exchangeable Shares, and the
Corporation of SMTC Nova Scotia's intention to exercise such right at least 60
days before the Redemption Date, except in the case of a redemption occurring as
a result of an SMTC Control Transaction, an Exchangeable Share Voting Event or
an Exempt Exchangeable Share Voting Event, in which case SMTC Nova Scotia shall
so notify the Transfer Agent and the Corporation on or before the Redemption
Date. The Transfer Agent will notify the holders of Exchangeable Shares as to
whether or not SMTC Nova Scotia has exercised the Redemption Call Right
forthwith after the expiry of the period during which the same may be exercised
by SMTC Nova Scotia. If SMTC Nova Scotia exercises the Redemption Call Right,
then on the Redemption Date, SMTC Nova Scotia will purchase and the holders will
sell all of the Exchangeable Shares then outstanding for a price per share equal
to the Redemption Call Purchase Price.

7.6 For the purposes of completing the purchase of the Exchangeable Shares
pursuant to the exercise of the Redemption Call Right, SMTC Nova Scotia shall
deposit with the Transfer Agent, on or before the Redemption Date, certificates
representing the aggregate number of shares of SMTC Common Stock deliverable by
SMTC Nova Scotia pursuant to such exercise and a cheque or cheques of SMTC Nova
Scotia payable at par at any branch of the bankers of SMTC Nova Scotia
representing the aggregate Dividend Amount in payment of the total Redemption
Call Purchase Price (without interest), less any amounts withheld pursuant to
Section 12.3. Provided that SMTC Nova Scotia has complied with the immediately
preceding sentence, on and after the Redemption Date, the rights of each holder
of Exchangeable Shares will be limited to receiving such holder's proportionate
part of the total Redemption Call Purchase Price payable by SMTC Nova Scotia
upon presentation and surrender by the holder of certificates representing the
Exchangeable Shares held by such holder and the holder shall on and after the
Redemption Date be considered and deemed for all purposes to be the holder of
the shares of SMTC Common Stock to which it is entitled pursuant to the exercise
of the Redemption Call Right. Upon surrender to the Transfer Agent of a
certificate or certificates representing Exchangeable Shares, together with such
other documents and instruments as may be required to effect a transfer of
Exchangeable Shares under the OBCA and the articles and by-laws of the
Corporation and such additional documents and instruments as the Transfer Agent
may reasonably require, the holder of such surrendered certificate or
certificates shall be entitled to receive in exchange therefor, and the Transfer
Agent on behalf of SMTC Nova Scotia shall deliver to such holder, certificates
representing shares of SMTC Common Stock to which the holder is entitled
pursuant to the exercise of the Redemption Call Right and a cheque or cheques of
SMTC Nova Scotia payable at par at any branch of the bankers of SMTC Nova Scotia
in payment of the remaining portion, if any, of the total Redemption Call
Purchase Price (without interest), less any amounts withheld pursuant to Section
12.3.

                                     -17-
<PAGE>

                                    ARTICLE 8
                            PURCHASE FOR CANCELLATION

8.1 Subject to applicable law and the articles of the Corporation, the
Corporation may at any time and from time to time purchase for cancellation all
or any part of the outstanding Exchangeable Shares at any price by tender to all
the holders of record of Exchangeable Shares then outstanding or through the
facilities of any stock exchange or stock quotation system on which the
Exchangeable Shares are then listed or quoted at any price per share, together
with an amount equal to the Dividend Amount. If in response to an invitation for
tenders under the provisions of this Section 8.1, more Exchangeable Shares are
tendered at a price or prices acceptable to the Corporation than the Corporation
is prepared to purchase, the Exchangeable Shares to be purchased by the
Corporation shall be purchased as nearly as may be pro rata according to the
number of shares tendered by each holder who submits a tender to the
Corporation, provided that when shares are tendered at different prices, the pro
rating shall be effected (disregarding fractions) only with respect to the
shares tendered at the price at which more shares were tendered than the
Corporation is prepared to purchase after the Corporation has purchased all the
shares tendered at lower prices. If only part of the Exchangeable Shares
represented by any certificate shall be purchased, a new certificate for the
balance of such shares shall be issued at the expense of the Corporation.

                                    ARTICLE 9
                                  VOTING RIGHTS

9.1 Except as required by applicable law and by Article 10, Section 11.1 and
Section 12.2 hereof, the holders of the Exchangeable Shares shall not be
entitled as such to receive notice of or to attend any meeting of the
shareholders of the Corporation or to vote at any such meeting.

                                   ARTICLE 10
                             AMENDMENT AND APPROVAL

10.1 The rights, privileges, restrictions and conditions attaching to the
Exchangeable Shares may be added to, changed or removed but only with the
approval of the holders of the Exchangeable Shares given as hereinafter
specified.

10.2 Any approval given by the holders of the Exchangeable Shares to add to,
change or remove any right, privilege, restriction or condition attaching to the
Exchangeable Shares or any other matter requiring the approval or consent of the
holders of the Exchangeable Shares shall be deemed to have been sufficiently
given if it shall have been given in accordance with applicable law subject to a
minimum requirement that such approval be evidenced by a resolution passed by
not less than two-thirds of the votes cast on such resolution at a meeting of
holders of Exchangeable Shares duly called and held at which the holders of at
least 25% of the holders of outstanding Exchangeable Shares at that time are
present or represented by proxy; provided that if at any such meeting the
holders of at least 25% of the outstanding Exchangeable Shares at that time are
not present or represented by proxy within one-half hour after the time
appointed for such meeting, then the meeting shall be adjourned to such date not
less than five days thereafter and to such time and place as may be designated
by the chairman of such meeting. At such adjourned meeting the holders of
Exchangeable Shares present or

                                     -18-
<PAGE>

represented by proxy thereat may transact the business for which the meeting was
originally called and a resolution passed thereat by the affirmative vote of not
less than two-thirds of the votes cast on such resolution at such meeting shall
constitute the approval or consent of the holders of the Exchangeable Shares.

                                  ARTICLE 11
                    RECIPROCAL CHANGES, ETC. IN RESPECT OF
                               SMTC COMMON STOCK

11.1 Each holder of an Exchangeable Share acknowledges that the Exchangeable
Share Support Agreement provides, in part, that SMTC will not, without the prior
approval of the Corporation and the prior approval of the holders of the
Exchangeable Shares given in accordance with Section 10.2 of these share
provisions:

     (a)  issue or distribute shares of SMTC Common Stock (or securities
          exchangeable for or convertible into or carrying rights to acquire
          shares of SMTC Common Stock) to the holders of all or substantially
          all of the then outstanding shares of SMTC Common Stock by way of
          stock dividend or other distribution, other than an issue of shares of
          SMTC Common Stock (or securities exchangeable for or convertible into
          or carrying rights to acquire shares of SMTC Common Stock) to holders
          of shares of SMTC Common Stock who exercise an option to receive
          dividends in shares of SMTC Common Stock (or securities exchangeable
          for or convertible into or carrying rights to acquire shares of SMTC
          Common Stock) in lieu of receiving cash dividends;

     (b)  issue or distribute rights, options or warrants to the holders of all
          or substantially all of the then outstanding shares of SMTC Common
          Stock entitling them to subscribe for or to purchase shares of SMTC
          Common Stock (or securities exchangeable for or convertible into or
          carrying rights to acquire shares of SMTC Common Stock); or

     (c)  issue or distribute to the holders of all or substantially all of the
          then outstanding shares of SMTC Common Stock:

          (i)   shares or securities of SMTC of any class other than SMTC Common
                Stock (other than shares convertible into or exchangeable for or
                carrying rights to acquire shares of SMTC Common Stock);

          (ii)  rights, options or warrants other than those referred to in
                Section 11.1(b) above;

          (iii) evidences of indebtedness of SMTC; or

          (iv)  assets of SMTC;

unless the economic equivalent on a per share basis of such rights, options,
securities, shares, evidences of indebtedness or other assets is issued or
distributed simultaneously to holders of the Exchangeable Shares.

                                     -19-
<PAGE>

11.2 Each holder of an Exchangeable Share acknowledges that the Exchangeable
Share Support Agreement further provides, in part, that SMTC will not, without
the prior approval of the Corporation and the prior approval of the holders of
the Exchangeable Shares given in accordance with Section 10.2 of these share
provisions:

     (a)  subdivide, redivide or change the then outstanding shares of SMTC
          Common Stock into a greater number of shares of SMTC Common Stock;

     (b)  reduce, combine, consolidate or change the then outstanding shares of
          SMTC Common Stock into a lesser number of shares of SMTC Common Stock;
          or

     (c)  reclassify or otherwise change the shares of SMTC Common Stock or
          effect an amalgamation, merger, reorganization or other transaction
          affecting the shares of SMTC Common Stock;

unless the same or an economically equivalent change shall simultaneously be
made to or in the rights of the holders of the Exchangeable Shares. The
Exchangeable Share Support Agreement further provides, in part, that the
aforesaid provisions of the Exchangeable Share Support Agreement shall not be
changed without the approval of the holders of the Exchangeable Shares given in
accordance with Section 10.2 of these share provisions.

                                  ARTICLE 12
                 ACTIONS BY THE CORPORATION AND ITS AFFILIATES

12.1 The Corporation will take all such actions and do all such things as shall
be necessary or advisable to perform and comply with and to ensure performance
and compliance by SMTC, SMTC Nova Scotia and the Corporation with all provisions
of the Exchangeable Share Support Agreement applicable to SMTC, SMTC Nova Scotia
and the Corporation, respectively, in accordance with the terms thereof
including, without limitation, taking all such actions and doing all such things
as shall be necessary or advisable to enforce to the fullest extent possible for
the direct benefit of the Corporation all rights and benefits in favour of the
Corporation under or pursuant to such agreement.

12.2 The Corporation shall not propose, agree to or otherwise give effect to any
amendment to, or waiver or forgiveness of its rights or obligations under, the
Exchangeable Share Support Agreement without the approval of the holders of the
Exchangeable Shares given in accordance with Section 10.2 of these share
provisions other than such amendments, waivers and/or forgiveness as may be
necessary or advisable for the purposes of:

     (a)  adding to the covenants of the other parties to such agreement for the
          protection of the Corporation or the holders of the Exchangeable
          Shares thereunder;

     (b)  making such provisions or modifications not inconsistent with such
          agreement as may be necessary or desirable with respect to matters or
          questions arising thereunder which, in the good faith opinion of the
          Board of Directors, it may be expedient to make, provided that the
          Board of Directors shall be of the good faith opinion, after
          consultation with counsel, that such provisions and

                                     -20-
<PAGE>

          modifications will not be prejudicial to the interests of the holders
          of the Exchangeable Shares; or

     (c)  making such changes in or corrections to such agreement which, on the
          advice of counsel to the Corporation, are required for the purpose of
          curing or correcting any ambiguity or defect or inconsistent provision
          or clerical omission or mistake or manifest error contained therein,
          provided that the Board of Directors shall be of the good faith
          opinion, after consultation with counsel, that such changes or
          corrections will not be prejudicial to the interests of the holders of
          the Exchangeable Shares.

12.3 The Corporation, SMTC Nova Scotia, SMTC and the Transfer Agent shall be
entitled to deduct and withhold from any dividend or consideration otherwise
payable to any holder of Exchangeable Shares such amounts as the Corporation,
SMTC Nova Scotia, SMTC or the Transfer Agent is required to deduct and withhold
with respect to such payment under the Income Tax Act (Canada), the United
States Internal Revenue Code of 1986 or any provision of provincial, state,
local or foreign tax law, in each case, as amended. To the extent that amounts
are so withheld, such withheld amounts shall be treated for all purposes hereof
as having been paid to the holder of the Exchangeable Shares in respect of which
such deduction and withholding was made, provided that such withheld amounts are
actually remitted to the appropriate taxing authority. To the extent that the
amount so required or permitted to be deducted or withheld from any payment to a
holder exceeds the cash portion of the consideration otherwise payable to the
holder, the Corporation, SMTC Nova Scotia, SMTC and the Transfer Agent are
hereby authorized to sell or otherwise dispose of such portion of the
consideration as is necessary to provide sufficient funds to the Corporation,
SMTC Nova Scotia, SMTC or the Transfer Agent, as the case may be, to enable it
to comply with such deduction or withholding requirement and the Corporation,
SMTC Nova Scotia, SMTC or the Transfer Agent shall notify the holder thereof and
remit to such holder any unapplied balance of the net proceeds of such sale.

12.4 All shares of SMTC Common Stock delivered by or on behalf of the
Corporation, SMTC Nova Scotia, or SMTC to any holder of Exchangeable Shares in
accordance with these share provisions shall be duly issued as fully paid and
non-assessable and shall be free and clear of any lien, claim or encumbrance.

                                  ARTICLE 13
                              LEGEND; CALL RIGHTS

13.1 The certificates evidencing the Exchangeable Shares shall contain or have
affixed thereto a legend in form and on terms approved by the Board of
Directors, with respect to the Exchangeable Share Support Agreement, the Call
Rights, and the Voting and Exchange Trust Agreement (including the provisions
with respect to the voting rights, exchange right and automatic exchange right
thereunder).

13.2 Each holder of an Exchangeable Share, whether of record or beneficial, by
virtue of becoming and being such a holder shall be deemed to acknowledge each
of the Liquidation Call Right, the Retraction Call Right and the Redemption Call
Right, in each case, in favour of

                                     -21-
<PAGE>

SMTC Nova Scotia, and the overriding nature thereof in connection with the
liquidation, dissolution or winding-up of the Corporation or the retraction or
redemption of Exchangeable Shares, as the case may be, and to be bound thereby
in favour of SMTC Nova Scotia as therein provided.

                                  ARTICLE 14
                                    NOTICES

14.1 Any notice, request or other communication to be given to the Corporation
by a holder of Exchangeable Shares shall be in writing and shall be valid and
effective if given by mail (postage prepaid) or by fax or by delivery to the
registered office of the Corporation and addressed to the attention of the
President of the Corporation. Any such notice, request or other communication,
if given by mail, fax or delivery, shall only be deemed to have been given and
received upon actual receipt thereof by the Corporation.

14.2 Any presentation and surrender by a holder of Exchangeable Shares to the
Corporation or the Transfer Agent of certificates representing Exchangeable
Shares in connection with the liquidation, dissolution or winding-up of the
Corporation or the retraction or redemption of Exchangeable Shares shall be made
by ordinary mail (postage prepaid) or by delivery to the registered office of
the Corporation or to such office of the Transfer Agent as may be specified by
the Corporation, in each case, addressed to the attention of the President of
the Corporation. Any such presentation and surrender of certificates shall only
be deemed to have been made and to be effective upon actual receipt thereof by
the Corporation or the Transfer Agent, as the case may be. Any such presentation
and surrender of certificates made by ordinary mail shall be at the sole risk of
the holder mailing the same.

14.3 Any notice, request or other communication to be given to a holder of
Exchangeable Shares by or on behalf of the Corporation shall be in writing and
shall be valid and effective if given by mail (postage prepaid) or by delivery
to the address of the holder recorded in the securities register of the
Corporation or, in the event of the address of any such holder not being so
recorded, then at the last known address of such holder. Any such notice,
request or other communication, if given by mail, shall be deemed to have been
given and received on the third Business Day following the date of mailing and,
if given by delivery, shall be deemed to have been given and received on the
date of delivery. Accidental failure or omission to give any notice, request or
other communication to one or more holders of Exchangeable Shares shall not
invalidate or otherwise alter or affect any action or proceeding to be taken by
the Corporation pursuant thereto.

14.4 If the Corporation determines that mail service is or is threatened to be
interrupted at the time when the Corporation is required or elects to give any
notice to the holders of Exchangeable Shares hereunder, the Corporation shall,
notwithstanding the provisions hereof, give such notice by means of publication
in The Globe and Mail, national edition, or any other English language daily
newspaper or newspapers of general circulation in Canada and in a French
language daily newspaper of general circulation in the Province of Quebec, once
in each of two successive weeks, and notice so published shall be deemed to have
been given on the latest date on which the first publication has taken place.

                                     -22-
<PAGE>

         If, by reason of any actual or threatened interruption of mail service
due to strike, lock-out or otherwise, any notice to be given to the Corporation
would be unlikely to reach its destination in a timely manner, such notice shall
be valid and effective only if delivered personally to the Corporation in
accordance with Section 14.1 or 14.2, as the case may be.

                                     -23-
<PAGE>

                                  SCHEDULE "A"
                              NOTICE OF RETRACTION

To:  SMTC Manufacturing Corporation of Canada (the "Corporation") and SMTC Nova
     Scotia Company ("SMTC Nova Scotia").

     This notice is given pursuant to Article 6 of the provisions (the
"Exchangeable Share Provisions") attaching to the Exchangeable Shares of the
Corporation represented by this certificate and all capitalized words and
expressions used in this notice that are defined in the Exchangeable Share
Provisions have the meanings ascribed to such words and expressions in such
Exchangeable Share Provisions.

     The undersigned hereby notifies the Corporation that, subject to the
Retraction Call Right referred to below, the undersigned desires to have the
Corporation redeem in accordance with Article 6 of the Exchangeable Share
Provisions:

     []   all share(s) represented by this certificate; or

     []   __________________ share(s) only represented by this certificate.

     The undersigned hereby notifies the Corporation that the Retraction Date
     shall be ________________________.

     NOTE: The Retraction Date must be a Business Day and must not be less than
           10 Business Days nor more than 15 Business Days after the date upon
           which this notice is received by the Corporation. If no such Business
           Day is specified above, the Retraction Date shall be deemed to be the
           fifteenth Business Day after the date on which this notice is
           received by the Corporation.

     The undersigned acknowledges the overriding Retraction Call Right of SMTC
Nova Scotia to purchase all but not less than all the Retracted Shares from the
undersigned and that this notice shall be deemed to be a revocable offer by the
undersigned to sell the Retracted Shares to SMTC Nova Scotia in accordance with
the Retraction Call Right on the Retraction Date for the Purchase Price and on
the other terms and conditions set out in Section 6.3 of the Exchangeable Share
Provisions. This Retraction Request, and this offer to sell the Retracted Shares
to SMTC Nova Scotia, may be revoked and withdrawn by the undersigned by notice
in writing given to the Corporation at any time before the close of business on
the Business Day immediately preceding the Retraction Date.

     The undersigned acknowledges that if, as a result of solvency provisions of
applicable law, the Corporation is unable to redeem all Retracted Shares, the
undersigned will be deemed to have exercised the Exchange Right (as defined in
the Voting and Exchange Trust Agreement) so as to require SMTC to purchase the
unredeemed Retracted Shares.

                                      -i-
<PAGE>

     The undersigned hereby represents and warrants to the Corporation and SMTC
Nova Scotia that the undersigned:

     []   is

     (select one)

     []   is not

a non-resident of Canada for purposes of the Income Tax Act (Canada).

     The undersigned acknowledges that in the absence of an indication that the
undersigned is not a non-resident of Canada, withholding on account of Canadian
tax may be made from amounts payable to the undersigned on the redemption or
purchase of the Retracted Shares.

     The undersigned hereby represents and warrants to the Corporation and SMTC
Nova Scotia that the undersigned has good title to, and owns, the share(s)
represented by this certificate to be acquired by the Corporation or SMTC Nova
Scotia, as the case may be, free and clear of all liens, claims and
encumbrances.

-------------        ----------------------------     --------------------------
(Date)               (Signature of Shareholder)       (Guarantee of Signature)

[]    Please check box if the securities and any cheque(s) resulting from the
      retraction or purchase of the Retracted Shares are to be held for pick-up
      by the shareholder from the Transfer Agent, failing which the securities
      and any cheque(s) will be mailed to the last address of the shareholder as
      it appears on the register.

NOTE: This panel must be completed and this certificate, together with such
      additional documents as the Transfer Agent may require, must be deposited
      with the Transfer Agent. The securities and any cheque(s) resulting from
      the retraction or purchase of the Retracted Shares will be issued and
      registered in, and made payable to, respectively, the name of the
      shareholder as it appears on the register of the Corporation and the
      securities and any cheque(s) resulting from such retraction or purchase
      will be delivered to such shareholder as indicated above, unless the form
      appearing immediately below is duly completed.

                                     -ii-
<PAGE>

Date:
     ------------------

Name of Person in Whose Name Securities or Cheque(s)
Are to be Registered, Issued or Delivered (please print):
                                                         -----------------------
Street Address or P.O. Box:
                           -----------------------------------------------------
Signature of Shareholder:
                           -----------------------------------------------------
City, Province and Postal Code:
                               -------------------------------------------------
Signature Guaranteed by:
                           -----------------------------------------------------

NOTE: If this Retraction Request is for less than all of the shares represented
      by this certificate, a certificate representing the remaining shares of
      the Corporation will be issued and registered in the name of the
      shareholder as it appears on the register of the Corporation, unless the
      Share Transfer Power hereon is duly completed in respect of such share(s).

                                     -iii-

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