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                                         CONFIDENTIAL TREATMENT REQUESTED
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                                                                    EXHIBIT 10.6

 103095                        AGREEMENT with an effective date of
                               October 31, 1995 between
                               INTERNATIONAL BUSINESS MACHINES
                               CORPORATION, a New York corporation
                               (hereinafter called IBM), and
                               APPLIED SCIENCE FICTION, a Delaware
                               corporation (hereinafter called
                               LICENSEE).

      IBM has the right to license others under certain patents.
      LICENSEE desires to acquire a nonexclusive license under those
      patents. In consideration of the premises and mutual covenants
      herein contained, IBM and LICENSEE agree as follows:

Section 1. Definitions

1.1 "Information Handling System" shall mean any instrumentality
or aggregate of instrumentalities primarily designed to compute,
classify, process, transmit, receive, retrieve, originate,
switch, store, display, manifest, measure, detect, record,
reproduce, handle or utilize any form of information,
intelligence or data for business, scientific, control or other
purposes.

1.2 "IHS Product" shall mean:

1.2.1 an Information Handling System; or

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1.2.2 any instrumentality or aggregate of instrumentalities (including, without
      limitation, any component, subassembly or program) designed for
      incorporation into an Information Handling System. An apparatus primarily
      designed for use in the fabrication (including testing) of an IHS Product
      shall not be considered an IHS Product even if it otherwise meets the
      above definition.

1.3 "Type Number" shall mean the combination of numbers, letters or words
utilized by LICENSEE to identify each type or model of Licensed Product.

1.4 "Licensed Patents" shall mean the patents listed in Exhibit 1 to this
Agreement, any patents issuing on the applications listed in Exhibit 1, any
patents of other countries corresponding to the listed patents and applications,
and any reissues, divisions, continuations, or extensions of the foregoing
patents and applications.

1.5 "Licensed Products" shall mean IHS Products which capture, create, process,
handle, transmit, store, or output images.

1.6 "Patented Portion" shall mean that portion of a Licensed Product which
embodies or uses all of the elements or steps recited in one claim of one
Licensed Patent or which is

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manufactured by the use of all of the steps recited in one claim of one Licensed
Patent or which is capable of being used to practice the method recited in one
claim of one Licensed Patent. A Licensed Product which embodies or uses all of
the elements or steps recited in more than one claim of one Licensed Patent or
in the claims of more than one Licensed Patent shall have more than one Patented
Portion.

1.7 "Subsidiary" shall mean a corporation, company or other entity:

1.7.1 more than fifty percent (50%) of whose outstanding shares or securities
      (representing the right to vote for the election of directors or other
      managing authority) are, now or hereafter, owned or controlled, directly
      or indirectly, by a party hereto, but such corporation, company or other
      entity shall be deemed to be a Subsidiary only so long as such ownership
      or control exists; or

1.7.2 which does not have outstanding shares or securities, as may be the case
      in a partnership, joint venture or unincorporated association, but more
      than fifty percent (50%) of whose ownership interest representing the
      right to make the decisions for such corporation, company or other entity
      is now or hereafter, owned or controlled, directly or indirectly, by a
      party hereto, but such corporation, company or other entity shall be

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      deemed to be a Subsidiary only so long as such ownership or control
      exists.

1.8 "LICENSEE's Selling Price" for each Licensed Product sold by LICENSEE to
other than its affiliate shall mean the bona fide selling price, after prompt
payment discounts and quantity discounts actually allowed, at which LICENSEE
sold said Licensed Product. If said selling price includes the following items,
they may be deducted only if separately invoiced to LICENSEE's customer:
packing, transportation and insurance charges; import, export, excise, sales and
value added taxes; and customs duties. "LICENSEE's Selling Price" for each
Licensed Product sold by LICENSEE to one of its affiliates shall be equal to the
average of the LICENSEE's Selling Prices for all Licensed Products identical to
said Licensed Product which were sold to other than LICENSEE's affiliates in the
relevant semiannual accounting period.

Section 2. License

2.1 IBM grants to LICENSEE a nonexclusive license under the Licensed Patents:

2.1.1 to make, use, import, and lease, sell and otherwise transfer Licensed
      Products; and

2.1.2 to use any apparatus in the manufacture of Licensed Products and practice
      any method or process in the manufacture or use of Licensed Products.

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The license granted in this Section 2.1 for any particular Licensed Product
shall be only under claims of Licensed Patents which claims define a Patented
Portion for said particular Licensed Product and which are claims of Licensed
Patents of the countries of manufacture, use, importation, or lease, sale or
other transfer by LICENSEE.

A particular Licensed Product is licensed under a Licensed Patent when and only
when:

2.1.3 such Licensed Patent defines a Patented Portion of such Licensed Product;

2.1.4 such Licensed Patent was identified in a report, as specified in Section
      5.5, as covering such Licensed Product; and

2.1.5 the royalty attributable to such Licensed Product was either timely paid
      as required by Section 5.4 or a late payment was made and accepted by IBM
      pursuant to Section 5.2.

2.2 No license, immunity or other right is granted by IBM either directly or by
implication, estoppel, or otherwise:

2.2.1 other than under the Licensed Patents;

2.2.2 to have Licensed Products made by a third party for
      LICENSEE;

2.2.3 with respect to any Licensed Product which does not fully include a
      Patented Portion;

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2.2.4 with respect to any item other than a Licensed Product notwithstanding
      that such other item may incorporate one or more Licensed Products; or

2.2.5 to parties acquiring any item from LICENSEE for the combination of such
      acquired item with any other item, including other items provided by
      LICENSEE, or for the use of any such combination even if such acquired
      item has no substantial use other than as part of such combination.

Section 3. Extension of License to Subsidiaries

3.1 The license granted herein by IBM is also granted to LICENSEE's
Subsidiaries, provided that:

3.1.1 each Subsidiary so licensed shall be bound by the terms and conditions of
      this Agreement as if it were named herein in the place of LICENSEE; and

3.1.2 LICENSEE shall pay and account to IBM for royalties hereunder in respect
      of the exercise by any Subsidiary of any license granted to it hereunder.

Any license granted to a Subsidiary shall terminate on the date such Subsidiary
ceases to be a Subsidiary.

Section 4. Royalty and Other Payment

4.1 LICENSEE shall pay, as hereinafter provided, royalties to IBM in respect of
each Licensed Product having one or more Patented Portions by virtue of one or
more Licensed Patents of

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the countries of manufacture, use, or lease, sale, or other transfer.

4.2 Subject to Sections 4.3, 4.5 and 4.6, for each Licensed Product which
includes one or more Patented Portions and which is manufactured, used, or
leased, sold or otherwise transferred in any country by or for LICENSEE,
LICENSEE shall pay a royalty at a rate computed at the following percentages of
LICENSEE's Selling Price of such Licensed Product:

    Number of Licensed Patents             Percentage of Licensee's
    Defining Patented Portions                   Selling Price
    --------------------------             ------------------------
                1                                    [*]
                2                                    [*]
                3                                    [*]
                4                                    [*]
                5 or more                            [*]

For the purposes of this Section 4.2, a Licensed Patent and its corresponding
patents shall be deemed to be one Licensed Patent.

4.3 In computing royalties on a Licensed Product, LICENSEE may exclude from the
number of Licensed Patents used to compute royalties under Section 4.2, any
Licensed Patent that defines one or more Patented Portions which are fully
included in an item that is part of the Licensed Product and which was purchased
by Licensee directly or indirectly from a third party who was authorized by IBM
to sell such item. If, however, a Licensed

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-----------
[*]  Indicates that material has been omitted and confidential treatment
requested therefor. All such material has been filed separately with the
Commission pursuant to Rule 406.

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Patent also defines another Patented Portion not fully included in such
purchased item, that particular Licensed Patent must be counted in the number of
Licensed Patents used to compute the percentage of LICENSEE's Selling Price of
the Licensed Product in accordance with Section 4.2.

4.4 If LICENSEE purchases from a third party portions of a Licensed Product and
combines such portions with each other and/or with other portions such that the
combination is itself a Licensed Product which includes a Patented Portion not
fully included in any individual purchased portion, then royalty shall be due
for the combination in accordance with this Section 4, notwithstanding the fact
that said third party is authorized by IBM to sell said purchased portions.

4.5 No royalties shall be paid by LICENSEE for Licensed Products which LICENSEE
manufactures for a third party where:

4.5.1 the third party is licensed by IBM to have such Licensed Product
      manufactured for it; and

4.5.2 LICENSEE received prior authorization from such third party under such
      party's license from IBM for such manufacture.

4.6 For royalties accruing through December 31, 1995, if a Licensed Product is
covered by more than four (4) Licensed Patents, LICENSEE may, at his election,
pay a royalty of four

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percent (4%) of the LICENSEE's Selling Price of said Licensed Product. On
January 1, 1996, this Section 4.6 and the reference to it contained in Section
4.2 shall be deemed to have been automatically deleted from this Agreement.

4.7 LICENSEE shall bear and pay all taxes (including, without limitation, sales
and value added taxes) imposed by the national government (including any
political subdivision thereof) of any country in which LICENSEE is doing
business, as the result of the existence of this Agreement or the exercise of
rights hereunder.

Section 5. Accruals, Records, Reports and Other Information

5.1 Royalties shall accrue when a Licensed Product, with respect to which
royalty payments are required by this Agreement, is first sold or otherwise
transferred (including, except as otherwise agreed in writing by IBM, sold or
otherwise transferred to IBM or any of its Subsidiaries), or first used or
leased in each country of use or lease, by or for LICENSEE, or when a newly
issued or acquired Licensed Patent covers any portion of a Licensed Product in
use or on lease by or for LICENSEE on which portion the royalties provided for
in Section 4.1 have not previously accrued.

5.2 IBM may accept a late payment provided such payment includes all overdue
royalties or other payment plus an interest penalty. The interest penalty on any
overdue royalty or other payment

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shall be calculated commencing on the date such royalty or other payment became
due, using an annual rate which is the greater of ten percent (10%) or one
percentage point higher than the prime interest rate as quoted by the head
office of Citibank N.A., New York, at the close of banking on such date, or on
the first business day thereafter if such date falls on a non-business day. If
such interest rate exceeds the maximum legal rate in the jurisdiction where a
claim therefor is being asserted, the interest rate shall be reduced to such
maximum legal rate.

5.3 LICENSEE shall pay all royalties and other payments due hereunder in United
States dollars. All royalties for an accounting period computed in other
currencies shall be converted into United States dollars at the exchange rate
for bank transfers from such currency to United States dollars as quoted by the
head office of Citibank N.A., New York, at the close of banking on the last day
of such accounting period (or the first business day thereafter if such last day
shall be a non-business day).

5.4 LICENSEE's accounting period shall be semiannual and shall end on the last
day of each June and December during the term of this Agreement. Within sixty
(60) days after the end of each such period LICENSEE shall furnish to IBM a
written report containing the information specified in Section 5.5 and shall pay

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to IBM all unpaid royalties accrued hereunder to the end of each such period.

5.5 LICENSEE's written report shall be certified by an officer of LICENSEE and
shall contain the following information:

5.5.1 for each Type Number of each Licensed Product upon which royalty has
      accrued, the Type Number, a description of said Licensed Product, the
      quantity sold or otherwise transferred during the accounting period, and
      the total LICENSEE Selling Price for such quantity;

5.5.2 each country in which the Licensed Products identified pursuant to Section
      5.5.1 were manufactured or leased, sold or otherwise transferred;

5.5.3 each Licensed Patent covering each such Licensed Product upon which
      LICENSEE is paying royalties. However, if LICENSEE pays royalties for the
      use of five (5) or more Licensed Patents for a particular Licensed Product
      pursuant to Section 4, LICENSEE shall have no obligation to identify the
      Licensed Patents for that Licensed Product;

5.5.4 the amount of royalties due for each Licensed Product;

5.5.5 the aggregate amount of all royalties due;

5.5.6 on IBM's request, the name and address of any third party providing items
      as described in Section 4.3;

5.5.7 for each Type Number of Licensed Product which LICENSEE has delivered
      during such accounting period to a third

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      party and which is exempt from royalty under Section 4.5, the quantity
      delivered, a description of such Licensed Product, and the name of such
      third party; and

5.5.8 in the event that any of Sections 5.5.1 through 5.5.7 do not apply to an
      accounting period, LICENSEE shall so state as to each such Section.

In the event no royalties are due, LICENSEE'S report shall so state.

5.6 For the purpose of determining obligations under IBM patents, LICENSEE
shall, within thirty (30) days of a written request by IBM:

5.6.1 provide to or make available for inspection by IBM or its designee a copy
      of any materials (including, but not limited to, brochures and service,
      use and other technical manuals) relevant to any product identified by
      IBM;

5.6.2 sell, license or otherwise transfer and deliver to IBM any product at any
      time offered for sale or license or otherwise marketed or transferred by
      LICENSEE or, at IBM's option, make such product available to IBM for
      inspection on LICENSEE'S premises. Such sale, license or transfer shall
      occur under LICENSEE'S generally available terms and conditions, subject
      to the time requirement specified in this Section 5.6; and

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5.6.3 provide to IBM or its designee access to those manufacturing processes
      used by LICENSEE in the manufacture of LICENSEE's products.

5.7 LICENSEE shall keep records in accordance with generally accepted accounting
principles and in sufficient detail to permit the determination of products
subject to this Agreement, the royalties due IBM, and the accuracy of the
information on LICENSEE's written reports. Such records shall include, but not
be limited to, detailed records supporting the information provided under
Section 5.5.

Such records shall be kept for six (6) years following the due date for the
report relating to the reporting period to which such records pertain.

Upon IBM's written request for an audit, LICENSEE shall permit auditors
designated by IBM, together with such legal and technical support as IBM deems
necessary, to examine, during ordinary business hours, records, materials, and
manufacturing processes of LICENSEE for the purpose of determining royalties due
IBM.

Such audit shall be restricted to an audit of those records, materials, and
manufacturing processes related to Licensed Products or Licensed Patents. Such
records and materials shall

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be deemed to include general financial information to provide a cross-check for
the amount of royalties reported. Such general financial information shall
include, but not be limited to, records on the total revenue for the period
covered by the audit with documentation supporting the fact that the part of
LICENSEE's total revenue which exceeds the reported total of LICENSEE's Selling
Price for Licensed Product was derived from activities other than the sale,
lease or other transfer of Licensed Products.

LICENSEE shall provide its full cooperation in such audit. Such cooperation
shall include, but not be limited to, providing sufficient time for such
examination and convenient access to relevant personnel and records.

Each party shall pay the costs that it incurs in the course of the audit.
However, in the event that the audit establishes underpayment greater than or
equal to the lesser of: five percent (5%) of the royalties which should have
been paid for the accounting periods being audited or the cost of the audit,
then LICENSEE shall reimburse IBM for the costs IBM incurred in conducting such
audit. However, such costs shall not include salaries paid to IBM employees
associated with such audit and such reimbursement shall not exceed the amount of
underpayment.

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5.8 In the event an audit under the provisions of Section 5.7 identifies an
underpayment of royalties by LICENSEE, LICENSEE shall pay an amount equal to the
sum of such underpayment, any interest due under the provisions of Section 5.2,
and any reimbursement to IBM for the costs IBM incurred in conducting such audit
as specified by Section 5.7, within sixty (60) days of IBM's written request.
Such amounts shall be subject to interest under the provisions of Section 5.2.

Section 6. Term of Agreement; Termination

6.1 The term of this Agreement shall be from the effective date of this
Agreement until five (5) years after said date.

6.2 LICENSEE may terminate the license granted herein, in whole or as to any
specified Licensed Patent by giving notice in writing to IBM, provided, however,
that termination of the license as to any specified Licensed Patent shall
include termination of the license as to all Licensed Patents in other countries
which correspond to such specified License Patent. Such termination shall be
effective on the date such notice is mailed unless the notice specifies a later
date. Any such termination shall be irrevocable.

6.3 IBM shall have the right to terminate this Agreement, or LICENSEE's license
granted hereunder, if LICENSEE:

6.3.1 fails, at any time:

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6.3.1.1 to make a report which meets the requirements of Section 5.5;

6.3.1.2 to pay any accrued royalties;

6.3.1.3 to make any other payment required herein;

6.3.1.4 to permit an audit pursuant to Section 5.7; or

6.3.1.5 to comply with the provisions of Section 5.6; and

6.3.2 does not cure such failure (including the payment of any interest due
      pursuant to Section 5.2) within sixty (60) days after written notice from
      IBM to LICENSEE specifying the nature of such failure.

IBM's termination of this Agreement or of LICENSEE's license shall be given by
written notice to LICENSEE by mail or by facsimile transmission, effective on
the date of mailing or transmission.

6.4 IBM shall notify LICENSEE in the event IBM identifies an underpayment of
accrued royalties. IBM shall provide to LICENSEE the basis on which it has
identified such underpayment. If LICENSEE cannot show that the basis used is
substantially incorrect, IBM may, in its sole discretion, terminate LICENSEE's
license. In such event, IBM shall institute an audit. If such audit shows that
the LICENSEE's payments of royalties are substantially correct for the period
being audited, LICENSEE's license shall be reinstated effective as of the date
of its termination.

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6.5 In the event this Agreement or the license granted hereunder, in whole or as
to any specified patent or claim, shall be terminated pursuant to this Section
6, the corresponding licenses granted to Subsidiaries of LICENSEE pursuant to
Section 3 shall likewise terminate, but no notices need be given by IBM to such
Subsidiaries.

6.6 In the event that more than fifty percent (50%) of LICENSEE's outstanding
shares or securities (representing the right to vote for the election of
directors or other managing authority) are now, or hereafter become, owned or
controlled, directly or indirectly, by a third party, LICENSEE's license shall
terminate unless IBM agrees otherwise in a signed writing.

6.7 No termination pursuant to this Section 6, Section 3.1 or Section 12.9 shall
relieve LICENSEE of any obligation or liability accrued hereunder prior to such
termination, or rescind or give rise to any right to rescind anything done by
LICENSEE or any payments made or other consideration given to IBM hereunder
prior to the time such termination becomes effective. Such termination shall not
affect in any manner any rights of IBM arising under this Agreement prior to
such termination, even though the exercise of such rights occurs after such
termination.

Section 7. Options for Other Licenses

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7.1 LICENSEE grants to IBM the right to obtain, at any time, and from time to
time, during the term of this Agreement, a license upon terms and conditions,
including royalty rates, no less favorable than those granted to LICENSEE herein
or in any amendment hereto. Said right shall be with respect to any IHS Product
and any patent, including utility models and including design patents for type
fonts and registrations for type fonts (but not including any other design
patents or registrations), issued prior to the termination of this Agreement,
which patent covers an invention applicable to IHS Products or any method or
process involved in the manufacture or use of such IHS Product and under which
patent, or the application therefor, LICENSEE or any of its Subsidiaries has the
right, at any time during the term of this Agreement, to grant licenses to third
parties (other than Subsidiaries). Said right of IBM shall be exercisable with
respect to any such patents whether or not issued and whether or not the
applications therefor exist at the time such right is exercised. If IBM
exercises said right, IBM shall pay to LICENSEE the sum of five thousand United
States dollars ($5,000) if such license is for a single patent of one country
and its corresponding patents, or twenty-five thousand United States dollars
($25,000) if such license is for two or more patents, which sum shall be
creditable against royalties payable by IBM under the provisions of said license
agreement. The date of said license agreement shall be the date on which IBM
requests such license.

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Section 8. Warranty

8.1 IBM represents and warrants that it has the full right and power to grant
the license set forth in Section 2, and that there are no outstanding
agreements, assignments, or encumbrances inconsistent with the provisions of
said license or with any other provisions of this Agreement. IBM makes no other
representations or warranties, express or implied, nor does IBM assume any
liability, in respect of any infringement of patents or other rights of third
parties due to LICENSEE's operation under the license herein granted.

8.2 IBM does not warrant nor does it represent that LICENSEE will not require a
license under other patents (owned by IBM or by third parties) to make, use,
import, or lease, sell or otherwise transfer Licensed Products.

Section 9. Means of Payments and Communications

9.1 Payment shall be made by electronic funds transfer. Any notice or other
communication required or permitted to be made or given to either party hereto
pursuant to this Agreement shall be sent to such party by facsimile or by
registered airmail (except that registered or certified mail may be used where
delivery is in the same country as mailing), postage prepaid, addressed to it at
its address set forth below, or to such other address as it shall designate by
written notice given to the other party. Payments shall be deemed to be made on
the date of electronic

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funds transfer. Notices or other communications shall be deemed to have been
given or provided on the date of sending. The addresses are as follows:

9.1.1 For electronic funds transfers of payments:

      IBM Director of Licensing
      The Bank of New York
      48 Wall Street
      New York, New York 10286
      United States of America
      Credit Account No. 890-0209-674
      ABA No. 0210-0001-8

9.1.2 For mailing to IBM:

      Director of Licensing
      International Business Machines Corporation
      500 Columbus Avenue
      Thornwood, New York 10594
      United States of America

9.1.3 For facsimile transmission to IBM:

      (914) 742-6737

9.1.4 For mailing to LICENSEE:

      Controller
      Applied Science Fiction
      2700 West Anderson Lane, Suite 901
      Austin, TX 78757

9.1.5 For facsimile transmission to ASF:

      (512) 450-0397

Section 10. Trade Secrets, Know-How and Copyrights

10.1 No license or other right is granted herein to either party, directly or by
implication, estoppel or otherwise, with respect to any trade secrets or know-
how, and no such license or other

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right shall arise from the consummation of this Agreement or from any acts,
statements or dealings leading to such consummation. Except as specifically
provided herein, neither party is required hereunder to furnish or disclose to
the other any technical or other information.

10.2 No license or other right is granted herein to either party, directly or by
implication, estoppel or otherwise to or under copyrights, or mask work or
similar rights.

Section 11. Assignments

11.1 IBM shall neither assign nor grant any right under any of its Licensed
Patents, and LICENSEE shall neither assign nor grant any right under any of its
patents which are subject to IBM's rights pursuant to Section 7, unless such
assignment or grant is made subject to the terms and conditions of this
Agreement. LICENSEE shall neither sublicense nor assign any of its rights or
privileges hereunder without the prior written consent of IBM. Any attempted
sublicense, assignment, or grant in derogation of the foregoing shall be void.

Section 12. Miscellaneous

12.1 Nothing contained in this Agreement shall be construed as conferring on
either party any license or other right to copy the exterior design of the
products of the other party.

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12.2 Nothing contained in this Agreement shall be construed as conferring any
right to use in advertising, publicity, or other promotional activities any
name, trade name, trademark or other designation of either party hereto
(including any contraction, abbreviation or simulation of any of the foregoing).
Each party hereto agrees not to use or refer to this Agreement or any provision
thereof in any promotional activity associated with products licensed hereunder,
without the express written approval of the other party.

12.3 Nothing contained in this Agreement shall be construed as limiting the
rights which the parties have outside the scope of the license granted
hereunder, or restricting the right of either party or any of its Subsidiaries
to make, have made, use, or lease, sell or otherwise dispose of any particular
product or products not herein licensed.

12.4 Neither party nor any of its Subsidiaries shall be required hereunder to
file any patent application, or to secure any patent or patent rights, or to
maintain any patent in force, or to provide copies of patent applications to the
other party or its Subsidiaries, or to disclose any inventions described or
claimed in such patent applications.

12.5 IBM shall not have any obligation hereunder to institute any action or suit
against third parties for infringement of any

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                                         UNDER 17 C.F.R. Sections 200.80(b) (4),
                                         200.83 AND 230.496

patent applications or Licensed Patents or to defend any action or suit brought
by a third party which challenges or concerns the validity of any patent
applications or Licensed Patents. In addition, LICENSEE shall not have any right
to institute any action or suit against third parties for infringement of any
patent applications or Licensed Patents.

12.6 In the event IBM prevails in any claim, proceeding or suit against LICENSEE
based upon this Agreement, including, but not limited to, actions for the
recovery of royalties due, LICENSEE shall pay all of IBM's associated costs and
attorneys' fees.

12.7 This Agreement shall not be binding upon the parties nor shall it obligate
either of the parties until it has been signed hereinbelow by or on behalf of
each party, in which event it shall be effective as of the date of this
Agreement first above written. No amendment or modification hereof shall be
valid or binding upon the parties unless made in writing and signed as
aforesaid. This Agreement and its Exhibit I embody the entire understanding of
the parties with respect to the Licensed Patents hereof and merges all prior
discussions between them, and neither of the parties shall be bound by any
conditions, definitions, warranties, understandings or representations with
respect to the subject matter hereof other than as expressly provided herein.

                                       23
<PAGE>

                                         CONFIDENTIAL TREATMENT REQUESTED
                                         UNDER 17 C.F.R. Sections 200.80(b) (4),
                                         200.83 AND 230.496

12.8 The headings of the several Sections are inserted for convenience of
reference only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.

12.9 If any Section of this Agreement is found by competent authority to be
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such Section in every other respect and the
remainder of this Agreement shall continue in effect so long as the Agreement
still expresses the intent of the parties. If the intent of the parties cannot
be preserved, this Agreement shall be either renegotiated or terminated.

12.10 This Agreement shall be construed, and the legal relations between the
parties hereto shall be determined, in accordance with the law of the State of
New York, United States of America.

                                       24
<PAGE>

                                         CONFIDENTIAL TREATMENT REQUESTED
                                         UNDER 17 C.F.R. Sections 200.80(b) (4),
                                         200.83 AND 230.496

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly signed as of the date first above written.

                                     INTERNATIONAL BUSINESS
                                     MACHINES CORPORATION

Witness:                             By /s/ M. C. Phelps, Jr.
                                        -----------------------------
/s/ D. J. Sullivan                      M. C. Phelps, Jr.
-------------------------               Vice President

                                     APPLIED SCIENCE FICTION

                                     By /s/ Mark Urdahl
                                        -----------------------------
                                        Mark Urdahl
                                        President
Witness:

/s/ ?????????????????
-------------------------
<PAGE>

                                         CONFIDENTIAL TREATMENT REQUESTED
                                         UNDER 17 C.F.R. Sections 200.80(b) (4),
                                         200.83 AND 230.496

                                   EXHIBIT I
                                  ----------

                               Licensed Patents

1. Issued US Patents

Patent Number              Issue Date
-------------              ----------

     [*]                       [*]

2. Filed US Patent Applications

Serial Number              Date Filed        Title
-------------              ----------        -----

     [*]                      [*]             [*]

-----------
[*]  Indicates that material has been omitted and confidential treatment
requested therefor. All such material has been filed separately with the
Commission pursuant to Rule 406.

<PAGE>

                                         CONFIDENTIAL TREATMENT REQUESTED
                                         UNDER 17 C.F.R. Sections 200.80(b) (4),
                                         200.83 AND 230.496

                              EXHIBIT 1 (CONT'D)

Serial Number              Date Filed        Title
-------------              ----------        -----

    [*]                        [*]            [*]

-----------
[*]  Indicates that material has been omitted and confidential treatment
requested therefor. All such material has been filed separately with the
Commission pursuant to Rule 406.

<PAGE>

                                         CONFIDENTIAL TREATMENT REQUESTED
                                         UNDER 17 C.F.R. Sections 200.80(b) (4),
                                         200.83 AND 230.496

021997

                                    AMENDMENT No. I dated January 1, 1997
                                    between INTERNATIONAL BUSINESS
                                    MACHINES CORPORATION a New York
                                    corporation (hereinafter "IBM") and
                                    APPLIED SCIENCE FICTION a Delaware
                                    corporation (hereinafter "ASF").

IBM and ASF entered into a patent license agreement "Agreement" effective
October 31, 1995 in which IBM granted ASF certain rights under Licensed Patents
as defined in Agreement.

ASF now desires, and IBM wishes to grant, the right to ASF to have Licensed
Products made by others:

In consideration of the premises and the mutual covenants herein contained, IBM
and LICENSEE agree as follows:

Delete section 2.1 and replace with new section 2.1 as follows:

Section 2. License

2.1   IBM grants to LICENSEE a nonexclusive license under the Licensed Patents:

2.1.1 to make, use, import, and lease, sell and otherwise transfer Licensed
      Products; and

2.1.2 to use any apparatus in the manufacture of Licensed Products and practice
      and method or process in the manufacture or use of Licensed Products.

2.1.3 to have Licensed Products made by another manufacturer for the use and/or
      lease, sale or other transfer by LICENSEE provided:

(a)   the specifications for Licensed Products were created by LICENSEE (either
      solely or jointly with one or more third parties);

and further provided that the license to have made products granted in this
Section 2.1.3

(b)   shall only be under claims of the Licensed Patents, the infringement of
      which would be necessitated by compliance with such specifications;

(c)   shall not be under claims for a method or process unless such method or
      process is based upon technology created by LICENSEE (either solely or
      jointly with one or more third parties); and

(d)   shall not apply to any products in the form manufactured or marketed by
      said other manufacturer prior to LICENSEE's furnishing of said
      specifications.

Unless LICENSEE informs IBM to the contrary, LICENSEE shall be deemed to have
authorized said other manufacturer to make Licensed Products under the license
granted to LICENSEE in this section 2.1.3 when the conditions specified herein
2.1.3 are fulfilled. In response to a written request identifying a product and
a manufacturer, LICENSEE shall in a timely manner inform IBM of the quantity of
such product, if any, manufactured by such manufacturer pursuant to the license
granted in this Section 2.1.3.
<PAGE>

                                         CONFIDENTIAL TREATMENT REQUESTED
                                         UNDER 17 C.F.R. Sections 200.80(b) (4),
                                         200.83 AND 230.496

The license granted in this Section 2.1 for any particular Licensed Product
shall be only under claims of Licensed Patents which claims define a Patented
Portion for said particular Licensed Product and which are claims of Licensed
Patents of the countries of manufacture, use, importation, or lease, sale or
other transfer by LICENSEE.

A particular Licensed Product is licensed under a Licensed Patent when and only
when:

2.1.4  such Licensed Patent defines a Patented Portion of such Licensed Product;

2.1.5  such Licensed Patent was identified in a report, as specified in Section
       5.5, as covering such Licensed Product; and

2.1.6  the royalty attributable to such Licensed Product was either timely paid
       as required by Section 5.4 or a late payment was made and accepted by IBM
       pursuant to Section 5.2.

Add new Section 6.8 as follows:

6.8 Each party agrees to promptly enter into good faith negotiations for a new
license on terms and conditions no less favorable then the terms and conditions
of this Agreement, upon written request received no more than six months prior
to the expiration of this Agreement.

Delete Sections 9.1.4 and 9.1.5 and replace with new sections 9.1.4 and 9.1.5,
respectively, as follows:

9.1.4 For mailing to LICENSEE:

      Intellectual Property Counsel
      Applied Science Fiction
      3925 West Braker Lane, Suite 500
      Austin, TX 78759

9.1.5 For facsimile transmission to ASF:

      (512) 305-0811

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly signed as of the date first above written.

Agreed to:                           Agreed to:
                                     International Business
                                     Machines Corporation

By: /s/ Mark Urdahl                  By: /s/ M. C. Phelps, Jr.
    --------------------------           -------------------------
    Name:  Mark Urdahl                   M. C. Phelps, Jr.
    Title: President & CEO               Vice President

Witness: Ava C. Ward                 Witness: Linda Condels
         ----------------------               --------------------

                                 2<PAGE>

                                                                     Exhibit 4.5

                             FORM OF EXCHANGE NOTE

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW
YORK, TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

<PAGE>

                                                                               2

No.                                                                 $150,000,000
                                                         CUSIP NO.:
                                                         ISIN NO.:

              12 3/4% Series B Senior Subordinated Notes Due 2009

          ChipPAC International Company Limited, a British Virgin Islands
corporation, promises to pay to CEDE & CO., or registered assigns, the principal
sum of ONE HUNDRED AND FIFTY MILLION UNITED STATES DOLLARS on August 1, 2009.

          Interest Payment Dates:  August 1 and February 1.

          Record Dates:  July 15 and January 15.

          Additional provisions of this Security are set forth on the other side
of this Security.

Dated:

                              CHIPPAC INTERNATIONAL COMPANY LIMITED,

                                by
                                  _________________________________
                                  Name:
                                  Title:

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

FIRSTAR BANK OF MINNESOTA, N.A.
     as Trustee, certifies that
     this is one of the Securities
     referred to in the Indenture.

by
    _____________________________
        Authorized Signatory
<PAGE>

                                                                               3

              12 3/4% Series B Senior Subordinated Note Due 2009

1.  Interest
    --------

          ChipPAC International Company Limited, a British Virgin Islands
corporation (such corporation, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the "Issuer"), promises
to pay interest on the principal amount of this Security at the rate per annum
shown above. The Issuer will pay interest semiannually on August 1 and February
1 of each year. Interest on the Securities will accrue from the most recent date
to which interest has been paid or, if no interest has been paid, from July 29,
1999. Interest will be computed on the basis of a 360-day year of twelve 30-day
months. The Issuer shall pay interest on overdue principal at the rate borne by
the Securities plus 1% per annum, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

2.  Method of Payment
    -----------------

          The Issuer will pay interest on the Securities to the Persons who are
registered holders of Securities at the close of business on the July 15 or
January 15 next preceding the interest payment date even if Securities are
canceled after the record date and on or before the interest payment date.
Holders must surrender Securities to a Paying Agent to collect principal
payments. The Issuer will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and
private debts. Payments in respect of the Securities represented by a Global
Security (including principal, premium and interest) will be made by wire
transfer of immediately available funds to the accounts specified by The
Depository Trust Company. The Issuer will make all payments in respect of a
certificated Security (including principal, premium and interest) by mailing a
check to the registered address of each Holder thereof; provided, however, that
                                                        --------  -------
payments on a certificated Security will be made by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such
Holder elects payment by wire transfer by giving written notice to the Trustee
or the Paying Agent to such effect designating such account no later than 30
days immediately preceding the
<PAGE>

                                                                               4

relevant due date for payment (or such other date as the Trustee may accept in
its discretion).

3.  Paying Agent and Registrar
    --------------------------

          Initially, Firstar Bank of Minnesota, N.A., a Delaware banking
corporation (the "Trustee"), will act as Paying Agent and Registrar. The Issuer
may appoint and change any Paying Agent, Registrar or co-registrar without
notice. The Issuer or any of its domestically incorporated Wholly Owned
Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4.  Indenture
    ---------

          The Issuer issued the Securities under an Indenture dated as of July
29, 1999 (as supplemented by a First Supplemental Indenture, dated as of August
5, 1999, the "Indenture"), among the Issuer, the Company and the Trustee. The
terms of the Securities include those stated in the Indenture and those made
part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
                                                                          ------
(S)(S) 77aaa-77bbbb) as in effect on the date of the Indenture (the "Act").
Terms defined in the Indenture and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of
those terms. The Issuer's obligations under the Securities are guaranteed by the
Company and each of the Subsidiary Guarantors.

          The Securities are general unsecured obligations of the Issuer. The
Issuer shall be entitled, subject to its compliance with Section 4.03 of the
Indenture, to issue Additional Securities pursuant to Section 2.13 of the
Indenture. The Securities issued under the indenture will be treated as a single
class for all purposes under the Indenture. The Indenture limits, among other
things (i) the incurrence of additional debt by the Company and its Restricted
Subsidiaries, (ii) the payment of dividends on capital stock of the Company and
the purchase, redemption or retirement of capital stock or subordinated
indebtedness, (iii) certain transactions with affiliates, (iv) sales of assets,
including capital stock of subsidiaries, and (v) certain consolidations, mergers
and transfers of assets. The Indenture also prohibits certain restrictions on
distributions from subsidiaries. All of these limitations and prohibitions,
however, are subject to a number of important qualifications contained in the
Indenture.
<PAGE>

                                                                               5

5. Optional Redemption
   -------------------

          Except as set forth in the next paragraph of this Section 5, the
Securities may not be redeemed prior to August 1, 2004. On and after that date,
the Issuer may redeem the Securities in whole at any time or in part from time
to time at the following redemption prices (expressed in percentages of
principal amount), plus accrued interest to the redemption date (subject to the
right of Holders of record on the relevant record date to receive interest due
on the related interest payment date):

          if redeemed during the 12-month period beginning August 1,

     Period                                        Percentage
     ------                                        ----------
     2004.......................................... 106.375%
     2005.......................................... 104.250
     2006.......................................... 102.125
     2007 and thereafter........................... 100.000%

          In addition, at any time prior to August 1, 2002, the Issuer may at
its option on one or more occasions redeem up to 35% of the aggregate principal
amount of Securities with the proceeds of one or more Equity Offerings, at any
time or from time to time, at a redemption price (expressed as a percentage of
principal amount) of 112 3/4% of the principal amount thereof, plus accrued
interest to redemption date (subject to the right of Holders of record on the
relevant record date to receive interest due on the related interest payment
date); provided, however, that:
       --------  -------

          (1) at least 65% of such aggregate principal amount of Securities
     (which includes Additional Securities, if any) remains outstanding
     immediately after the occurrence of each such redemption (other than the
     Securities held, directly or indirectly, by the Issuer or its Affiliates);
     and

          (2) each such redemption occurs within 60 days after the date of the
     related Equity Offering.

          The Securities may be redeemed, at the option of the Issuer, at any
time as a whole but not in part, on not less than 30 nor more than 60 days'
notice, at 100% of the principal amount thereof, plus accrued and unpaid
interest (if any) to the date of redemption (subject to the right of holders of
record on the relevant record date to receive interest due on the relevant
interest payment date), in the event the Issuer has become or would become
obligated to
<PAGE>

                                                                               6

pay, on the next date on which any amount would be payable with respect to the
Securities, any Additional Amounts as a result of a change in or an amendment to
the laws (including any regulations promulgated thereunder) of the British
Virgin Islands (or any political subdivision or taxing authority thereof or
therein), or any change in or amendment to any official position regarding the
application or interpretation of such laws or regulations, which change or
amendment is announced or becomes effective on or after the Issue Date;
provided, however, that (i) no such notice of redemption may be given earlier
--------  -------
than 60 days prior to the earliest date on which Additional Amounts are due and
payable in respect of the Notes and (ii) at the time any such redemption notice
is given, such obligation to pay Additional Amounts remains in effect. Prior to
giving any notice of redemption pursuant to this provision, the Issuer will
deliver to the applicable Trustee (i) an Officers' Certificate stating that it
is entitled to effect such redemption and setting forth a statement of facts
showing that the conditions precedent to its right to so redeem have occurred
and (ii) an Opinion of Counsel in the British Virgin Islands to the effect that
the Issuer has or will become obligated to pay Additional Amounts as a result of
such amendment or change.

          In the case of any partial redemption, selection of the Securities for
redemption will be made by the Trustee, on a pro rata basis, by lot or by such
                                             --- ----
other method as the Trustee in its sole discretion shall deem to be fair and
appropriate, although no Security of U.S. $1,000 in original principal amount or
less shall be redeemed in part. If any Security is to be redeemed in part only,
the notice of redemption relating to such Security shall state the portion of
the principal amount thereof to be redeemed. A new Security in principal amount
equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security.

6.  Notice of Redemption
    --------------------

          Notice of optional redemption will be mailed at least 30 days but not
more than 60 days before the redemption date to each Holder of Securities to be
redeemed at his registered address. Securities in denominations larger than
$1,000 may be redeemed in part but only in whole multiples of $1,000. If money
sufficient to pay the redemption price of and accrued interest on all Securities
(or portions thereof) to be redeemed on the redemption date is deposited with
the Paying Agent on or before the redemption date and certain other conditions
are satisfied,
<PAGE>

                                                                               7

on and after such date interest ceases to accrue on such Securities (or such
portions thereof) called for redemption.

7. Put Provisions
   --------------

          Upon a Change of Control, any Holder of Securities will have the
right, subject to certain conditions, to cause the Issuer to repurchase all or
any part of the Securities of such Holder at a repurchase price equal to 101% of
the principal amount of the Securities to be repurchased plus accrued interest
to the date of repurchase (subject to the right of holders of record on the
relevant record date to receive interest due on the related interest payment
date) as provided in, and subject to the terms of, the Indenture.

8. Subordination
   -------------

          The Securities are subordinated to Senior Indebtedness, as defined in
the Indenture. To the extent provided in the Indenture, Senior Indebtedness must
be paid before the Securities may be paid. The Issuer agrees, and each
Securityholder by accepting a Security agrees, to the subordination provisions
contained in the Indenture and authorizes the Trustee to give it effect and
appoints the Trustee as attorney-in-fact for such purpose.

9.  Denominations; Transfer; Exchange
    ---------------------------------

          The Securities are in registered form without coupons in denominations
of $1,000 and whole multiples of $1,000. A Holder may transfer or exchange
Securities in accordance with the Indenture. The Registrar may require a Holder,
among other things, to furnish appropriate endorsements or transfer documents
and to pay any taxes and fees required by law or permitted by the Indenture. The
Registrar need not register the transfer of or exchange any Securities selected
for redemption (except, in the case of a Security to be redeemed in part, the
portion of the Security not to be redeemed) or any Securities for a period of 15
days before a selection of Securities to be redeemed or 15 days before an
interest payment date.

10.  Persons Deemed Owners
     ---------------------

          The registered Holder of this Security may be treated as the owner of
it for all purposes.
<PAGE>

                                                                               8

 11.  Unclaimed Money
      ---------------

          If money for the payment of principal or interest remains unclaimed
for two years, the Trustee or Paying Agent shall pay the money back to the
Issuer at its request unless an abandoned property law designates another
Person. After any such payment, Holders entitled to the money must look only to
the Issuer and not to the Trustee for payment.

12.  Discharge and Defeasance
     ------------------------

          Subject to certain conditions, the Issuer at any time may terminate
some or all of its obligations under the Securities and the Indenture if the
Issuer deposits with the Trustee money or U.S. Government Obligations for the
payment of principal and interest on the Securities to redemption or maturity,
as the case may be.

13.  Amendment, Waiver
     -----------------

          Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount outstanding of the Securities
and (ii) any default or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in principal amount outstanding of
the Securities. Subject to certain exceptions set forth in the Indenture,
without the consent of any Securityholder, the Issuer and the Trustee may amend
the Indenture or the Securities to cure any ambiguity, omission, defect or
inconsistency, or to comply with Article 5 of the Indenture, or to provide for
uncertificated Securities in addition to or in place of certificated Securities,
or to add guarantees with respect to the Securities or to secure the Securities,
or to add additional covenants or surrender rights and powers conferred on the
Issuer, or to comply with any request of the SEC in connection with qualifying
the Indenture under the Act, or to make any change that does not adversely
affect the rights of any Securityholder.

14.  Defaults and Remedies
     ---------------------

          Under the Indenture, Events of Default include (i) default for 30 days
in payment of interest on the Securities; (ii) default in payment of principal
on the Securities at maturity, upon redemption pursuant to para  graph 5 of the
Securities, upon acceleration or otherwise,
<PAGE>

                                                                               9

or failure by the Issuer to redeem or purchase Securities when required; (iii)
failure by the Issuer and the Company to comply with other agreements in the
Indenture or the Securities, in certain cases subject to notice and lapse of
time; (iv) certain accelerations (including failure to pay within any grace
period after final maturity) of other Indebtedness of the Issuer if the amount
accelerated (or so unpaid) exceeds $10.0 million; (v) certain events of
bankruptcy or insolvency with respect to the Company and its Significant
Subsidiaries; (vi) certain judgments or decrees for the payment of money in
excess of $10.0 million; and (vii) failure of the Company Guaranty or any
Subsidiary Guaranty to be in full force and effect, or the failure of the
Company or a Significant Subsidiary that is a Subsidiary Guarantor to honor its
obligations under the Company Guaranty or its Subsidiary Guaranty, as the case
may be. If an Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the Securities may declare all
the Securities to be due and payable immediately. Certain events of bankruptcy
or insolvency are Events of Default which will result in the Securities being
due and payable immediately upon the occurrence of such Events of Default.

          Securityholders may not enforce the Indenture or the Securities except
as provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives reasonable indemnity or security. Subject to
certain limitations, Holders of a majority in principal amount of the Securities
may direct the Trustee in its exercise of any trust or power. The Trustee may
with hold from Securityholders notice of any continuing Default (except a
Default in payment of principal or interest) if it determines that withholding
notice is in the interest of the Holders.

15.  Trustee Dealings with the Issuer
     --------------------------------

          Subject to certain limitations imposed by the Act,  the Trustee under
the Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Issuer or its Affiliates and may otherwise deal with the Issuer or
its Affiliates with the same rights it would have if it were not Trustee.
<PAGE>

                                                                              10

16.  No Recourse Against Others
     --------------------------

          A director, officer, employee or stockholder, as such, of the Issuer
or the Trustee shall not have any liability for any obligations of the Issuer
under the Securities or the Indenture or for any claim based on, in respect of
or by reason of such obligations or their creation.  By accepting a Security,
each Securityholder waives and releases all such liability.  The waiver and
release are part of the consideration for the issue of the Securities.

17.  Authentication
     --------------

          This Security shall not be valid until an authorized signatory of the
Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

18.  Abbreviations
     -------------

          Customary abbreviations may be used in the name of a Securityholder or
an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

19.  Holders' Compliance with Registration Rights Agreement.
     ------------------------------------------------------

          Each Holder of a Security, by acceptance hereof, acknowledges and
agrees to the provisions of the Registration Rights Agreement, including,
without limitation, the obligations of the Holders with respect to a
registration and the indemnification of the Issuer to the extent provided
therein.

20.  Governing Law.
     --------------

          THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

          The Issuer will furnish to any Securityholder upon written request and
without charge to the Security holder a copy of the Indenture which has in it
the text of this Security in larger type.  Requests may be made to:
<PAGE>

                                                                              11

                                               CHIPPAC INTERNATIONAL COMPANY
                                               LIMITED
                                               c/o CHIPPAC, INC.
                                               3151 CORONADO DRIVE
                                               SANTA CLARA, CA 95054
<PAGE>

                                                                              12

________________________________________________________________________________

                                ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

          (Print or type assignee's name, address and zip code)

          (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint                           agent to transfer this
Security on the books of the Issuer.  The agent may substitute another to act
for him.

________________________________________________________________________________

Date: ________________ Your Signature:__________________________________________

________________________________________________________________________________
Sign exactly as your name appears on the other side of this Security.

                                    _________________________
                                           Signature

Signature Guarantee:

____________________________        _________________________
Signature must be guaranteed               Signature

<PAGE>

                                                                              13

             SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

               The following increases or decreases in this Global Security have
been made:

<TABLE>
<CAPTION>
<S>             <C>                  <C>                      <C>                    <C>
Date of         Amount of decrease   Amount of increase       Principal amount       Signature of
Exchange        in Principal         in Principal             of this Global         authorized officer
                Amount of this       Amount of this           Security following     of Trustee or
                Global Security      Global Security          such decrease or       Securities
                                                              increase)              Custodian
</TABLE>
<PAGE>

                                                                              14

                       OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Issuer
pursuant to Section 4.06 or 4.09 of the Indenture, check the box:

                                     [  ]

          If you want to elect to have only part of this Security purchased by
the Issuer pursuant to Section 4.06 or 4.09 of the Indenture, state the amount
in principal amount:  $

Date: _______________    Your Signature:      _________________________________
                                              (Sign exactly as your name
                                              appears on the other side of this
                                              Security.)

Signature Guarantee: __________________________________________________________
                                (Signature must be guaranteed)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]