Document:

<PAGE>   1
                                                                     Exhibit 4.1

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                    CHARTERED SEMICONDUCTOR MANUFACTURING LTD

                            -----------------------

                                    INDENTURE

                            Dated as of April 2, 2001

                            -----------------------

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

                                     Trustee

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                            Page
                                                                                                            ----
<S>        <C>             <C>                                                                              <C>
ARTICLE I. DEFINITIONS AND INCORPORATION BY
         REFERENCE............................................................................................1
         Section 1.1.      Definitions........................................................................1
         Section 1.2.      Other Definitions..................................................................5
         Section 1.3.      Incorporation by Reference of Trust Indenture Act..................................5
         Section 1.4.      Rules of Construction..............................................................6

ARTICLE II. THE
         SECURITIES...........................................................................................6
         Section 2.1.      Issuable in Series.................................................................6
         Section 2.2.      Establishment of Terms of Series of Securities.....................................6
         Section 2.3.      Execution and Authentication.......................................................9
         Section 2.4.      Registrar and Paying Agent.........................................................10
         Section 2.5.      Paying Agent to Hold Money in Trust................................................10
         Section 2.6.      Securityholder Lists...............................................................11
         Section 2.7.      Transfer and Exchange..............................................................11
         Section 2.8.      Mutilated, Destroyed, Lost and Stolen Securities...................................11
         Section 2.9.      Outstanding Securities.............................................................12
         Section 2.10.     Treasury Securities................................................................13
         Section 2.11.     Temporary Securities...............................................................13
         Section 2.12.     Cancellation.......................................................................13
         Section 2.13.     Defaulted Interest.................................................................13
         Section 2.14.     Global Securities..................................................................13
         Section 2.15.     CUSIP Numbers......................................................................15

ARTICLE III.
         REDEMPTION...........................................................................................15
         Section 3.1.      Notice to Trustee..................................................................15
         Section 3.2.      Selection of Securities to be Redeemed.............................................15
         Section 3.3.      Notice of Redemption...............................................................15
         Section 3.4.      Effect of Notice of Redemption.....................................................16
         Section 3.5.      Deposit of Redemption Price........................................................16
         Section 3.6.      Securities Redeemed in Part........................................................16

ARTICLE IV.
         COVENANTS............................................................................................17
         Section 4.1.      Payment of Principal and Interest..................................................17
         Section 4.2.      SEC Reports........................................................................17
         Section 4.3.      Compliance Certificate.............................................................17
         Section 4.4.      Stay, Extension and Usury Laws.....................................................17
         Section 4.5.      Corporate Existence................................................................18
         Section 4.6.      Taxes..............................................................................18

ARTICLE V.
         SUCCESSORS...........................................................................................18
         Section 5.1.      When Company May Merge, Etc........................................................18
         Section 5.2.      Successor Corporation Substituted..................................................18
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>      <C>               <C>                                                                                <C>
ARTICLE VI. DEFAULTS AND
         REMEDIES.............................................................................................19
         Section 6.1.      Events of Default..................................................................19
         Section 6.2.      Acceleration of Maturity; Rescission and Annulment.................................20
         Section 6.3.      Collection of Indebtedness and Suits for Enforcement by Trustee....................21
         Section 6.4.      Trustee May File Proofs of Claim...................................................22
         Section 6.5.      Trustee May Enforce Claims Without Possession of Securities........................23
         Section 6.6.      Application of Money Collected.....................................................23
         Section 6.7.      Limitation on Suits................................................................23
         Section 6.8.      Unconditional Right of Holders to Receive Principal and Interest...................24
         Section 6.9.      Restoration of Rights and Remedies.................................................24
         Section 6.10.     Rights and Remedies Cumulative.....................................................24
         Section 6.11.     Delay or Omission Not Waiver.......................................................25
         Section 6.12.     Control by Holders.................................................................25
         Section 6.13.     Waiver of Past Defaults............................................................25
         Section 6.14.     Undertaking for Costs..............................................................25

ARTICLE VII.
         TRUSTEE..............................................................................................26
         Section 7.1.      Duties of Trustee..................................................................26
         Section 7.2.      Rights of Trustee..................................................................27
         Section 7.3.      Individual Rights of Trustee.......................................................28
         Section 7.4.      Trustee's Disclaimer...............................................................28
         Section 7.5.      Notice of Defaults.................................................................28
         Section 7.6.      Reports by Trustee to Holders......................................................28
         Section 7.7.      Compensation and Indemnity.........................................................29
         Section 7.8.      Replacement of Trustee.............................................................29
         Section 7.9.      Successor Trustee by Merger, etc...................................................30
         Section 7.10.     Eligibility; Disqualification......................................................30
         Section 7.11.     Preferential Collection of Claims Against Company..................................31

ARTICLE VIII. SATISFACTION AND DISCHARGE;
         DEFEASANCE...........................................................................................31
         Section 8.1.      Satisfaction and Discharge of Indenture............................................31
         Section 8.2.      Application of Trust Funds; Indemnification........................................32
         Section 8.3.      Legal Defeasance of Securities of any Series.......................................32
         Section 8.4.      Covenant Defeasance................................................................34
         Section 8.5.      Repayment to Company...............................................................35

ARTICLE IX. AMENDMENTS AND
         WAIVERS..............................................................................................35
         Section 9.1.      Without Consent of Holders.........................................................35
         Section 9.2.      With Consent of Holders............................................................36
         Section 9.3.      Limitations........................................................................36
         Section 9.4.      Compliance with Trust Indenture Act................................................37
         Section 9.5.      Revocation and Effect of Consents..................................................37
         Section 9.6.      Notation on or Exchange of Securities..............................................37
         Section 9.7.      Trustee Protected..................................................................38

ARTICLE X.
         MISCELLANEOUS........................................................................................38
</TABLE>

                                       ii
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<TABLE>
<S>      <C>               <C>                                                                                <C>
         Section 10.1.     Trust Indenture Act Controls.......................................................38
         Section 10.2.     Notices............................................................................38
         Section 10.3.     Communication by Holders with Other Holders........................................39
         Section 10.4.     Certificate and Opinion as to Conditions Precedent.................................39
         Section 10.5.     Statements Required in Certificate or Opinion......................................39
         Section 10.6.     Rules by Trustee and Agents........................................................39
         Section 10.7.     Legal Holidays.....................................................................40
         Section 10.8.     No Recourse Against Others.........................................................40
         Section 10.9.     Counterparts.......................................................................40
         Section 10.10.    Governing Laws.....................................................................40
         Section 10.11.    No Adverse Interpretation of Other Agreements......................................40
         Section 10.12.    Successors.........................................................................40
         Section 10.13.    Severability.......................................................................41
         Section 10.14.    Table of Contents, Headings, Etc...................................................41
         Section 10.15.    Securities in a Foreign Currency or in ECU.........................................41
         Section 10.16.    Judgment Currency..................................................................42

ARTICLE XI. SINKING
         FUNDS................................................................................................42
         Section 11.1.     Applicability of Article...........................................................42
         Section 11.2.     Satisfaction of Sinking Fund Payments with Securities..............................42
         Section 11.3.     Redemption of Securities for Sinking Fund..........................................43
</TABLE>

                                      iii
<PAGE>   5

         Reconciliation and tie between Trust Indenture Act of 1939 and
                      Indenture, dated as of April 2, 2001
<TABLE>
<S>               <C>                                                                        <C>
ss.310 (a)(1)     ......................................................................     7.10
       (a)(2)     ......................................................................     7.10
       (a)(3)     ......................................................................     Not Applicable
       (a)(4)     ......................................................................     Not Applicable
       (a)(5)     ......................................................................     7.10
          (b)     ......................................................................     7.10
   ss. 311(a)     ......................................................................     7.11
          (b)     ......................................................................     7.11
          (c)     ......................................................................     Not Applicable
   ss. 312(a)     ......................................................................     2.6
          (b)     ......................................................................     10.3
          (c)     ......................................................................     10.3
   ss. 313(a)     ......................................................................     7.6
       (b)(1)     ......................................................................     7.6
       (b)(2)     ......................................................................     7.6
       (c)(1)     ......................................................................     7.6
          (d)     ......................................................................     7.6
   ss. 314(a)     ......................................................................     4.2, 10.5
          (b)     ......................................................................     Not Applicable
       (c)(1)     ......................................................................     10.4
       (c)(2)     ......................................................................     10.4
       (c)(3)     ......................................................................     Not Applicable
          (d)     ......................................................................     Not Applicable
          (e)     ......................................................................     10.5
          (f)     ......................................................................     Not Applicable
   ss. 315(a)     ......................................................................     7.1
          (b)     ......................................................................     7.5
          (c)     ......................................................................     7.1
          (d)     ......................................................................     7.1
          (e)     ......................................................................     6.14
   ss. 316(a)     ......................................................................     2.10
    (a)(1)(A)     ......................................................................     6.12
    (a)(1)(B)     ......................................................................     6.13
          (b)     ......................................................................     6.8
  ss.317(a)(1)     ......................................................................     6.3
       (a)(2)     ......................................................................     6.4
          (b)     ......................................................................     2.5
   ss. 318(a)     ......................................................................     10.1
</TABLE>

---------------

Note: This reconciliation and tie shall not, for any purpose, be deemed to be
part of the Indenture.

                                       iv
<PAGE>   6

                  Indenture dated as of April 2, 2001 between Chartered
Semiconductor Manufacturing Ltd, a Singapore ("Company"), and Wells Fargo Bank
Minnesota, National Association, a U.S. national banking association
("Trustee").

                  Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Securities
issued under this Indenture.

                                   ARTICLE I.
                  DEFINITIONS AND INCORPORATION BY REFERENCE

         Section 1.1.      Definitions.

                  "Additional Amounts" means any additional amounts which are
required hereby or by any Security, under circumstances specified herein or
therein, to be paid by the Company in respect of certain taxes imposed on
Holders specified therein and which are owing to such Holders.

                  "Affiliate" of any specified person means any other person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified person. For the purposes of this definition,
"control" (including, with correlative meanings, the terms "controlled by" and
"under common control with"), as used with respect to any person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such person, whether through the
ownership of voting securities or by agreement or otherwise.

                  "Agent" means any Registrar, Paying Agent or Service Agent.

                  "Authorized Newspaper" means a newspaper in an official
language of the country of publication customarily published at least once a day
for at least five days in each calendar week and of general circulation in the
place in connection with which the term is used. If it shall be impractical in
the opinion of the Trustee to make any publication of any notice required hereby
in an Authorized Newspaper, any publication or other notice in lieu thereof that
is made or given by the Trustee shall constitute a sufficient publication of
such notice.

                  "Bearer" means anyone in possession from time to time of a
Bearer Security.

                  "Bearer Security" means any Security, including any interest
coupon appertaining thereto, that does not provide for the identification of the
Holder thereof.

                  "Board of Directors" means the Board of Directors of the
Company or any duly authorized committee thereof.

                  "Board Resolution" means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Company to have been adopted by
the Board of Directors or pursuant to authorization by the Board of Directors
and to be in full force and effect on the date of the certificate and delivered
to the Trustee.

<PAGE>   7

                  "Business Day" means, unless otherwise provided by Board
Resolution, Officers' Certificate or supplemental indenture hereto for a
particular Series, any day except a Saturday, Sunday or a legal holiday in the
City of New York or the Republic of Singapore on which banking institutions are
authorized or required by law, regulation or executive order to close.

                  "Company" means the party named as such above until a
successor replaces it and thereafter means the successor.

                  "Company Order" means a written order signed in the name of
the Company by two Officers, one of whom must be the Company's principal
executive officer, principal financial officer or principal accounting officer.

                  "Company Request" means a written request signed in the name
of the Company by its Chairman of the Board, a President or a Vice President,
and by its Chief Financial Officer, its Secretary or an Assistant Secretary, and
delivered to the Trustee.

                  "Corporate Trust Office" means the office of the Trustee at
which at any particular time its corporate trust business shall be principally
administered.

                  "Debt" of any person as of any date means, without
duplication, all indebtedness of such person in respect of borrowed money,
including all interest, fees and expenses owed in respect thereto (whether or
not the recourse of the lender is to the whole of the assets of such person or
only to a portion thereof), or evidenced by bonds, notes, debentures or similar
instruments.

                  "Default" means any event which is, or after notice or passage
of time would be, an Event of Default.

                  "Depository" means, with respect to the Securities of any
Series issuable or issued in whole or in part in the form of one or more Global
Securities, the person designated as Depository for such Series by the Company,
which Depository shall be a clearing agency registered under the Exchange Act;
and if at any time there is more than one such person, "Depository" as used with
respect to the Securities of any Series shall mean the Depository with respect
to the Securities of such Series.

                  "Discount Security" means any Security that provides for an
amount less than the stated principal amount thereof to be due and payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.2.

                  "Dollars" means the currency of The United States of America.

                  "ECU" means the European Currency Unit as determined by the
Commission of the European Union.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Foreign Currency" means any currency or currency unit issued
by a government other than the government of The United States of America.

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<PAGE>   8

                  "Foreign Government Obligations" means with respect to
Securities of any Series that are denominated in a Foreign Currency, (i) direct
obligations of the government that issued or caused to be issued such currency
for the payment of which obligations its full faith and credit is pledged or
(ii) obligations of a person controlled or supervised by or acting as an agency
or instrumentality of such government the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not callable or
redeemable at the option of the issuer thereof.

                  "Global Security" or "Global Securities" means a Security or
Securities, as the case may be, in the form established pursuant to Section 2.2
evidencing all or part of a Series of Securities, issued to the Depository for
such Series or its nominee, and registered in the name of such Depository or
nominee.

                  "Holder" or "Securityholder" means a person in whose name a
Security is registered or the holder of a Bearer Security.

                  "Indenture" means this Indenture as amended from time to time
and shall include the form and terms of particular Series of Securities
established as contemplated hereunder.

                  "interest" with respect to any Discount Security which by its
terms bears interest only after Maturity, means interest payable after Maturity.

                  "Maturity," when used with respect to any Security or
installment of principal thereof, means the date on which the principal of such
Security or such installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption, notice of option to elect repayment or
otherwise.

                  "Officer" means the Chairman of the Board, any Deputy Chairman
of the Board, any President, any Vice-President, the Treasurer, the Secretary,
any Assistant Treasurer or any Assistant Secretary of the Company.

                  "Officers' Certificate" means a certificate signed by two
Officers, one of whom must be the Company's principal executive officer,
principal financial officer or principal accounting officer.

                  "Opinion of Counsel" means a written opinion of legal counsel
who is acceptable to the Trustee, such Trustee's consent not to be unreasonably
withheld. The counsel may be an employee of or counsel to the Company.

                  "person" means any individual, corporation, partnership, joint
venture, association, limited liability company, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

                  "principal" of a Security means the principal of the Security
plus, when appropriate, the premium, if any, on, and any Additional Amounts in
respect of, the Security.

                  "Responsible Officer" means any officer of the Trustee in its
Corporate Trust Office and also means, with respect to a particular corporate
trust matter, any other officer to

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<PAGE>   9

whom any corporate trust matter is referred because of his or her knowledge of
and familiarity with a particular subject.

                  "SEC" means the Securities and Exchange Commission.

                  "Securities" means the debentures, notes or other debt
instruments of the Company of any Series authenticated and delivered under this
Indenture.

                  "Series" or "Series of Securities" means each series of
debentures, notes or other debt instruments of the Company created pursuant to
Sections 2.1 and 2.2 hereof.

                  "Significant Subsidiary" means (i) any direct or indirect
Subsidiary of the Company that would be a "significant subsidiary" as defined in
Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities
Act of 1933, as amended, as such regulation is in effect on the date hereof, or
(ii) any group of direct or indirect Subsidiaries of the Company that, taken
together as a group, would be a "significant subsidiary" as defined in Article
1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of
1933, as amended, as such regulation is in effect on the date hereof.

                  "Stated Maturity" when used with respect to any Security or
any installment of principal thereof or interest thereon, means the date
specified in such Security as the fixed date on which the principal of such
Security or such installment of principal or interest is due and payable.

                  "Subsidiary" of any specified person means any corporation of
which at least a majority of the outstanding stock having by the terms thereof
ordinary voting power for the election of directors of such corporation
(irrespective of whether or not at the time stock of any other class or classes
of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time directly or indirectly owned by
such person, or by one or more other Subsidiaries, or by such person and one or
more other Subsidiaries.

                  "TIA" means the Trust Indenture Act of 1939 (15 U.S. Code
ss.ss. 77aaa-77bbbb) as in effect on the date of this Indenture; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after such
date, "TIA" means, to the extent required by any such amendment, the Trust
Indenture Act as so amended.

                  "Trustee" means the person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each person who is then a Trustee hereunder, and
if at any time there is more than one such person, "Trustee" as used with
respect to the Securities of any Series shall mean the Trustee with respect to
Securities of that Series.

                  "U.S. Government Obligations" means securities which are (i)
direct obligations of The United States of America for the payment of which its
full faith and credit is pledged or (ii) obligations of a person controlled or
supervised by and acting as an agency or instrumentality of The United States of
America the payment of which is unconditionally guaranteed as a full faith and
credit obligation by The United States of America, and which in the case of (i)
and (ii)

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<PAGE>   10

are not callable or redeemable at the option of the issuer thereof, and shall
also include a depository receipt issued by a bank or trust company as custodian
with respect to any such U.S. Government Obligation or a specific payment of
interest on or principal of any such U.S. Government Obligation held by such
custodian for the account of the holder of a depository receipt, provided that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the U.S. Government
Obligation evidenced by such depository receipt.

         Section 1.2.      Other Definitions.

<TABLE>
<CAPTION>                                                    DEFINED IN
              TERM                                             SECTION
--------------------------------                             ----------
<S>                                                          <C>
"Bankruptcy Law"                                                  6.1
"Custodian"                                                       6.1
"Event of Default"                                                6.1
"Journal"                                                       10.15
"Judgment Currency"                                             10.16
"Legal Holiday"                                                  10.7
"mandatory sinking fund payment"                                 11.1
"Market Exchange Rate"                                          10.15
"New York Banking Day"                                          10.16
"optional sinking fund payment"                                  11.1
"Paying Agent"                                                    2.4
"Registrar"                                                       2.4
"Required Currency"                                             10.16
"Service Agent"                                                   2.4
"successor person"                                                5.1
</TABLE>

         Section 1.3.      Incorporation by Reference of Trust Indenture Act.

                  Whenever this Indenture refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this Indenture. The
following TIA terms used in this Indenture have the following meanings:

                  "Commission" means the SEC.

                  "indenture securities" means the Securities.

                  "indenture security holder" means a Securityholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture trustee" or "institutional trustee" means the
                  Trustee.

                  "obligor" on the indenture securities means the Company and
                  any successor obligor upon the Securities.

5
<PAGE>   11

                  All other terms used in this Indenture that are defined by the
TIA, defined by TIA reference to another statute or defined by SEC rule under
the TIA and not otherwise defined herein are used herein as so defined.

         Section 1.4.      Rules of Construction.

                  Unless the context otherwise requires:

                  (a)      a term has the meaning assigned to it;

                  (b)      an accounting term not otherwise defined has the
         meaning assigned to it in accordance with generally accepted accounting
         principles;

                  (c)      references to "generally accepted accounting
         principles" shall mean generally accepted accounting principles in
         effect as of the time when and for the period as to which such
         accounting principles are to be applied;

                  (d)      "or" is not exclusive;

                  (e)      words in the singular include the plural, and in the
         plural include the singular; and

                  (f)      provisions apply to successive events and
         transactions.

                                   ARTICLE II.
                                 THE SECURITIES

         Section 2.1.      Issuable in Series.

                  The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities
may be issued in one or more Series. All Securities of a Series shall be
identical except as may be set forth in a Board Resolution, a supplemental
indenture or an Officers' Certificate detailing the adoption of the terms
thereof pursuant to the authority granted under a Board Resolution. In the case
of Securities of a Series to be issued from time to time, the Board Resolution,
Officers' Certificate or supplemental indenture may provide for the method by
which specified terms (such as interest rate, maturity date, record date or date
from which interest shall accrue) are to be determined. Securities may differ
between Series in respect of any matters, provided that all Series of Securities
shall be equally and ratably entitled to the benefits of the Indenture.

         Section 2.2.      Establishment of Terms of Series of Securities.

                  At or prior to the issuance of any Securities within a Series,
the following shall be established (as to the Series generally, in the case of
Subsection 2.2.1 and either as to such Securities within the Series or as to the
Series generally in the case of Subsections 2.2.2 through 2.2.22) by a Board
Resolution, a supplemental indenture or an Officers' Certificate pursuant to
authority granted under a Board Resolution:

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<PAGE>   12

         2.2.1.   the title of the Series (which shall distinguish the
Securities of that particular Series from the Securities of any other Series);

         2.2.2.   the price or prices (expressed as a percentage of the
principal amount thereof) at which the Securities of the Series will be issued;

         2.2.3.   any limit upon the aggregate principal amount of the
Securities of the Series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of the
Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);

         2.2.4.   the date or dates on which the principal of the Securities of
the Series is payable;

         2.2.5.   the rate or rates (which may be fixed or variable) per annum
or, if applicable, the method used to determine such rate or rates (including,
but not limited to, any commodity, commodity index, stock exchange index or
financial index) at which the Securities of the Series shall bear interest, if
any, the date or dates from which such interest, if any, shall accrue, the date
or dates on which such interest, if any, shall commence and be payable and any
regular record date for the interest payable on any interest payment date;

         2.2.6.   the place or places where the principal of and interest, if
any, on the Securities of the Series shall be payable, or the method of such
payment, if by wire transfer, mail or other means;

         2.2.7.   if applicable, the period or periods within which, the price
or prices at which and the terms and conditions upon which the Securities of the
Series may be redeemed, in whole or in part, at the option of the Company;

         2.2.8.   the obligation, if any, of the Company to redeem or purchase
the Securities of the Series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the period or periods within
which, the price or prices at which and the terms and conditions upon which
Securities of the Series shall be redeemed or purchased, in whole or in part,
pursuant to such obligation;

         2.2.9.   the dates, if any, on which and the price or prices at which
the Securities of the Series will be repurchased by the Company at the option of
the Holders thereof and other detailed terms and provisions of such repurchase
obligations;

         2.2.10.  if applicable, whether the Securities of the Series will be
convertible into our Ordinary Shares (including Ordinary Shares represented by
American Depository Shares) or exchangeable for other of our securities, and if
so, the terms of conversion or exchange;

         2.2.11.  if other than denominations of $1,000 and any integral
multiple thereof, the denominations in which the Securities of the Series shall
be issuable;

7
<PAGE>   13

         2.2.12.  the forms of the Securities of the Series in bearer or fully
registered form (and, if in fully registered form, whether the Securities will
be issuable as Global Securities);

         2.2.13.  if other than the principal amount thereof, the portion of the
principal amount of the Securities of the Series that shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.2;

         2.2.14.  the currency of denomination of the Securities of the Series,
which may be Dollars or any Foreign Currency, including, but not limited to, the
ECU, and if such currency of denomination is a composite currency other than the
ECU, the agency or organization, if any, responsible for overseeing such
composite currency;

         2.2.15.  the designation of the currency, currencies or currency units
in which payment of the principal of and interest, if any, on the Securities of
the Series will be made;

         2.2.16.  if payments of principal of or interest, if any, on the
Securities of the Series are to be made in one or more currencies or currency
units other than that or those in which such Securities are denominated, the
manner in which the exchange rate with respect to such payments will be
determined;

         2.2.17.  the manner in which the amounts of payment of principal of or
interest, if any, on the Securities of the Series will be determined, if such
amounts may be determined by reference to an index based on a currency or
currencies or by reference to a commodity, commodity index, stock exchange index
or financial index;

         2.2.18.  the provisions, if any, relating to any security provided for
the Securities of the Series;

         2.2.19.  any addition to or change in the Events of Default which
applies to any Securities of the Series and any change in the right of the
Trustee or the requisite Holders of such Securities to declare the principal
amount thereof due and payable pursuant to Section 6.2;

         2.2.20.  any addition to or change in the covenants set forth in
Articles IV or V which applies to Securities of the Series;

         2.2.21.  any other terms of the Securities of the Series (which terms
shall not be inconsistent with the provisions of this Indenture, except as
permitted by Section 9.1, but which may modify or delete any provision of this
Indenture insofar as it applies to such Series); and

         2.2.22.  any depositories, interest rate calculation agents, exchange
rate calculation agents or other agents with respect to Securities of such
Series if other than those appointed herein.

         All Securities of any one Series need not be issued at the same time
and may be issued from time to time, consistent with the terms of this
Indenture, if so provided by or pursuant to the Board Resolution, supplemental
indenture or Officers' Certificate referred to

8
<PAGE>   14

above, and the authorized principal amount of any Series may not be increased to
provide for issuances of additional Securities of such Series, unless otherwise
provided in such Board Resolution, supplemental indenture or Officers'
Certificate.

         Section 2.3.      Execution and Authentication.

                  Two Officers shall sign the Securities for the Company by
manual or facsimile signature.

                  If an Officer whose signature is on a Security no longer holds
that office at the time the Security is authenticated, the Security shall
nevertheless be valid.

                  A Security shall not be valid until authenticated by the
manual signature of the Trustee or an authenticating agent. The signature shall
be conclusive evidence that the Security has been authenticated under this
Indenture.

                  The Trustee shall at any time, and from time to time,
authenticate Securities for original issue in the principal amount provided in
the Board Resolution, supplemental indenture hereto or Officers' Certificate,
upon receipt by the Trustee of a Company Order. Such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which oral instructions shall be
promptly confirmed in writing. Each Security shall be dated the date of its
authentication unless otherwise provided by a Board Resolution, a supplemental
indenture hereto or an Officers' Certificate.

                  The aggregate principal amount of Securities of any Series
outstanding at any time may not exceed any limit upon the maximum principal
amount for such Series set forth in the Board Resolution, supplemental indenture
hereto or Officers' Certificate delivered pursuant to Section 2.2, except as
provided in Section 2.8.

                  Prior to the issuance of Securities of any Series, the Trustee
shall have received and (subject to Section 7.2) shall be fully protected in
relying on: (a) the Board Resolution, supplemental indenture hereto or Officers'
Certificate establishing the form of the Securities of that Series or of
Securities within that Series and the terms of the Securities of that Series or
of Securities within that Series, (b) an Officers' Certificate complying with
Section 10.4, and (c) an Opinion of Counsel complying with Section 10.4.

                  The Trustee shall have the right to decline to authenticate
and deliver any Securities of such Series: (a) if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken; or (b) if the
Trustee in good faith by its board of directors or trustees, executive committee
or a trust committee of directors and/or vice-presidents shall determine that
such action would expose the Trustee to personal liability to Holders of any
then outstanding Series of Securities.

                  The Trustee may appoint an authenticating agent acceptable to
the Company to authenticate Securities. An authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with the Company or
an Affiliate.

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<PAGE>   15

         Section 2.4.      Registrar and Paying Agent.

                  The Company shall maintain, with respect to each Series of
Securities, at the place or places specified with respect to such Series
pursuant to Section 2.2, an office or agency where Securities of such Series may
be presented or surrendered for payment ("Paying Agent"), where Securities of
such Series may be surrendered for registration of transfer or exchange
("Registrar") and where notices and demands to or upon the Company in respect of
the Securities of such Series and this Indenture may be served ("Service
Agent"). The Registrar shall keep a register with respect to each Series of
Securities and to their transfer and exchange. The Company will give prompt
written notice to the Trustee of the name and address, and any change in the
name or address, of each Registrar, Paying Agent or Service Agent. If at any
time the Company shall fail to maintain any such required Registrar, Paying
Agent or Service Agent or shall fail to furnish the Trustee with the name and
address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders,
notices and demands.

                  The Company may also from time to time designate one or more
co-registrars, additional paying agents or additional service agents and may
from time to time rescind such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligations to maintain a Registrar, Paying Agent and Service Agent in each
place so specified pursuant to Section 2.2 for Securities of any Series for such
purposes. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the name or address of any such
co-registrar, additional paying agent or additional service agent. The term
"Registrar" includes any co-registrar; the term "Paying Agent" includes any
additional paying agent; and the term "Service Agent" includes any additional
service agent.

                  The Company hereby appoints the Trustee the initial Registrar,
Paying Agent and Service Agent for each Series unless another Registrar, Paying
Agent or Service Agent, as the case may be, is appointed prior to the time
Securities of that Series are first issued.

         Section 2.5.      Paying Agent to Hold Money in Trust.

                  The Company shall require each Paying Agent other than the
Trustee to agree in writing that the Paying Agent will hold in trust, for the
benefit of Securityholders of any Series of Securities, or the Trustee, all
money held by the Paying Agent for the payment of principal of or interest on
the Series of Securities, and will notify the Trustee of any default by the
Company in making any such payment. While any such default continues, the
Trustee may require a Paying Agent to pay all money held by it to the Trustee.
The Company at any time may require a Paying Agent to pay all money held by it
to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other
than the Company or a Subsidiary) shall have no further liability for the money.
If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold
in a separate trust fund for the benefit of Securityholders of any Series of
Securities all money held by it as Paying Agent.

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<PAGE>   16

         Section 2.6.      Securityholder Lists.

                  The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Securityholders of each Series of Securities and shall otherwise
comply with TIA ss. 312(a). If the Trustee is not the Registrar, the Company
shall furnish to the Trustee at least ten days before each interest payment date
and at such other times as the Trustee may request in writing a list, in such
form and as of such date as the Trustee may reasonably require, of the names and
addresses of Securityholders of each Series of Securities.

         Section 2.7.      Transfer and Exchange.

                  Where Securities of a Series are presented to the Registrar or
a co-registrar with a request to register a transfer or to exchange them for an
equal principal amount of Securities of the same Series, the Registrar shall
register the transfer or make the exchange if its requirements for such
transactions are met. To permit registrations of transfers and exchanges, the
Trustee shall authenticate Securities at the Registrar's request. No service
charge shall be made for any registration of transfer or exchange (except as
otherwise expressly permitted herein), but the Company may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith (other than any such transfer tax or similar
governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or
9.6).

                  Neither the Company nor the Registrar shall be required (a) to
issue, register the transfer of, or exchange Securities of any Series for the
period beginning at the opening of business fifteen days immediately preceding
the mailing of a notice of redemption of Securities of that Series selected for
redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.

         Section 2.8.      Mutilated, Destroyed, Lost and Stolen Securities.

                  If any mutilated Security is surrendered to the Trustee, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

                  If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
and (ii) such security or indemnity as may be required by them to save each of
them and any agent of either of them harmless, then, in the absence of notice to
the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and make available for delivery, in lieu of any such destroyed,
lost or stolen Security, a new Security of the same Series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

11
<PAGE>   17

                  In case any such mutilated, destroyed, lost or stolen Security
has become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security, pay such Security.

                  Upon the issuance of any new Security under this Section, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

                  Every new Security of any Series issued pursuant to this
Section in lieu of any destroyed, lost or stolen Security shall constitute an
original additional contractual obligation of the Company, whether or not the
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that Series duly issued
hereunder.

                  The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.

         Section 2.9.      Outstanding Securities.

                  The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, those reductions in the interest on a Global Security
effected by the Trustee in accordance with the provisions hereof and those
described in this Section as not outstanding.

                  If a Security is replaced pursuant to Section 2.8, it ceases
to be outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

                  If the Paying Agent (other than the Company, a Subsidiary or
an Affiliate of any thereof) holds on the Maturity of Securities of a Series
money sufficient to pay such Securities payable on that date, then on and after
that date such Securities of the Series cease to be outstanding and interest on
them ceases to accrue.

                  A Security does not cease to be outstanding because the
Company or an Affiliate holds the Security.

                  In determining whether the Holders of the requisite principal
amount of outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Discount Security that shall be deemed to be outstanding for such purposes shall
be the amount of the principal thereof that would be due and payable as of the
date of such determination upon a declaration of acceleration of the Maturity
thereof pursuant to Section 6.2.

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<PAGE>   18

         Section 2.10.     Treasury Securities.

                  In determining whether the Holders of the required principal
amount of Securities of a Series have concurred in any request, demand,
authorization, direction, notice, consent or waiver Securities of a Series owned
by the Company or an Affiliate shall be disregarded, except that for the
purposes of determining whether the Trustee shall be protected in relying on any
such request, demand, authorization, direction, notice, consent or waiver only
Securities of a Series that the Trustee knows are so owned shall be so
disregarded.

         Section 2.11.     Temporary Securities.

                  Until definitive Securities are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Securities upon
a Company Order. Temporary Securities shall be substantially in the form of
definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee upon request shall authenticate definitive
Securities of the same Series and date of maturity in exchange for temporary
Securities. Until so exchanged, temporary securities shall have the same rights
under this Indenture as the definitive Securities.

         Section 2.12.     Cancellation.

                  The Company at any time may deliver Securities to the Trustee
for cancellation. The Registrar and the Paying Agent shall forward to the
Trustee any Securities surrendered to them for registration of transfer,
exchange or payment. The Trustee shall cancel all Securities surrendered for
transfer, exchange, payment, replacement or cancellation and shall destroy such
canceled Securities (subject to the record retention requirement of the Exchange
Act) and deliver a certificate of such destruction to the Company, unless the
Company otherwise directs. The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation.

         Section 2.13.     Defaulted Interest.

                  If the Company defaults in a payment of interest on a Series
of Securities, it shall pay the defaulted interest, plus, to the extent
permitted by law, any interest payable on the defaulted interest, to the persons
who are Securityholders of the Series on a subsequent special record date. The
Company shall fix the record date and payment date. At least 30 days before the
record date, the Company shall mail to the Trustee and to each Securityholder of
the Series a notice that states the record date, the payment date and the amount
of interest to be paid. The Company may pay defaulted interest in any other
lawful manner.

         Section 2.14.     Global Securities.

                  2.14.1.  Terms of Securities. A Board Resolution, a
supplemental indenture hereto or an Officers' Certificate shall establish
whether the Securities of a Series shall be issued in whole or in part in the
form of one or more Global Securities and the Depository for such Global
Security or Securities.

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<PAGE>   19

                  2.14.2.  Transfer and Exchange. Notwithstanding any provisions
to the contrary contained in Section 2.7 of the Indenture and in addition
thereto, any Global Security shall be exchangeable pursuant to Section 2.7 of
the Indenture for Securities registered in the names of Holders other than the
Depository for such Security or its nominee only if (i) such Depository notifies
the Company that it is unwilling or unable to continue as Depository for such
Global Security or if at any time such Depository ceases to be a clearing agency
registered under the Exchange Act, and, in either case, the Company fails to
appoint a successor Depository within 90 days of such event, (ii) the Company
executes and delivers to the Trustee an Officers' Certificate to the effect that
such Global Security shall be so exchangeable or (iii) an Event of Default with
respect to the Securities represented by such Global Security shall have
happened and be continuing. Any Global Security that is exchangeable pursuant to
the preceding sentence shall be exchangeable for Securities registered in such
names as the Depository shall direct in writing in an aggregate principal amount
equal to the principal amount of the Global Security with like tenor and terms.

                  Except as provided in this Section 2.14.2, a Global Security
may not be transferred except as a whole by the Depository with respect to such
Global Security to a nominee of such Depository, by a nominee of such Depository
to such Depository or another nominee of such Depository or by the Depository or
any such nominee to a successor Depository or a nominee of such a successor
Depository.

                  2.14.3.  Legend. Any Global Security issued hereunder shall
bear a legend in substantially the following form:

                  "This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of the
Depository or a nominee of the Depository. This Security is exchangeable for
Securities registered in the name of a person other than the Depository or its
nominee only in the limited circumstances described in the Indenture, and may
not be transferred except as a whole by the Depository to a nominee of the
Depository, by a nominee of the Depository to the Depository or another nominee
of the Depository or by the Depository or any such nominee to a successor
Depository or a nominee of such a successor Depository."

                  2.14.4.  Acts of Holders. The Depository, as a Holder, may
appoint agents and otherwise authorize participants to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action which
a Holder is entitled to give or take under the Indenture.

                  2.14.5.  Payments. Notwithstanding the other provisions of
this Indenture, unless otherwise specified as contemplated by Section 2.2,
payment of the principal of and interest, if any, on any Global Security shall
be made to the Holder thereof.

                  2.14.6.  Consents, Declaration and Directions. Except as
provided in Section 2.14.5, the Company, the Trustee and any Agent shall treat a
person as the Holder of such principal amount of outstanding Securities of such
Series represented by a Global Security as shall be specified in a written
statement of the Depositary with respect to such Global Security,

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<PAGE>   20

for purposes of obtaining any consents, declarations, waivers or directions
required to be given by the Holders pursuant to this Indenture.

         Section 2.15.     CUSIP Numbers.

                  The Company in issuing the Securities may use "CUSIP" numbers
(if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in
notices of redemption as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other elements of
identification printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.

                                  ARTICLE III.
                                   REDEMPTION

         Section 3.1.      Notice to Trustee.

                  The Company may, with respect to any Series of Securities,
reserve the right to redeem and pay the Series of Securities or may covenant to
redeem and pay the Series of Securities or any part thereof prior to the Stated
Maturity thereof at such time and on such terms as provided for in such
Securities. If a Series of Securities is redeemable and the Company wants or is
obligated to redeem prior to the Stated Maturity thereof all or part of the
Series of Securities pursuant to the terms of such Securities, it shall notify
the Trustee of the redemption date and the principal amount of Series of
Securities to be redeemed. The Company shall give the notice at least 45 days
before the redemption date (or such shorter notice as may be acceptable to the
Trustee).

         Section 3.2.      Selection of Securities to be Redeemed.

                  Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture or an Officers' Certificate, if less than
all the Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed in any manner that the Trustee deems
fair and appropriate. The Trustee shall make the selection from Securities of
the Series outstanding not previously called for redemption. The Trustee may
select for redemption portions of the principal of Securities of the Series that
have denominations larger than $1,000. Securities of the Series and portions of
them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or,
with respect to Securities of any Series issuable in other denominations
pursuant to Section 2.2.10, the minimum principal denomination for each Series
and integral multiples thereof. Provisions of this Indenture that apply to
Securities of a Series called for redemption also apply to portions of
Securities of that Series called for redemption.

         Section 3.3.      Notice of Redemption.

                  Unless otherwise indicated for a particular Series by Board
Resolution, a supplemental indenture hereto or an Officers' Certificate, at
least 30 days but not more than 60 days before a redemption date, the Company
shall mail a notice of redemption by first-class mail

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<PAGE>   21

to each Holder whose Securities are to be redeemed and if any Bearer Securities
are outstanding, publish on one occasion a notice in an Authorized Newspaper.

                  The notice shall identify the Securities of the Series to be
redeemed and shall state:

                  (a)      the redemption date;

                  (b)      the redemption price;

                  (c)      the name and address of the Paying Agent;

                  (d)      that Securities of the Series called for redemption
         must be surrendered to the Paying Agent to collect the redemption
         price;

                  (e)      that interest on Securities of the Series called for
         redemption ceases to accrue on and after the redemption date; and

                  (f)      any other information as may be required by the terms
         of the particular Series or the Securities of a Series being redeemed.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense.

         Section 3.4.      Effect of Notice of Redemption.

                  Once notice of redemption is mailed or published as provided
in Section 3.3, Securities of a Series called for redemption become due and
payable on the redemption date and at the redemption price. A notice of
redemption may not be conditional. Upon surrender to the Paying Agent, such
Securities shall be paid at the redemption price plus accrued interest to the
redemption date.

         Section 3.5.      Deposit of Redemption Price.

                  On or before the redemption date, the Company shall deposit
with the Paying Agent money sufficient to pay the redemption price of and
accrued interest, if any, on all Securities to be redeemed on that date.

         Section 3.6.      Securities Redeemed in Part.

                  Upon surrender of a Security that is redeemed in part, the
Trustee shall authenticate for the Holder a new Security of the same Series and
the same maturity equal in principal amount to the unredeemed portion of the
Security surrendered.

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<PAGE>   22
                                   ARTICLE IV.
                                   COVENANTS

         Section 4.1. Payment of Principal and Interest.

                  The Company covenants and agrees for the benefit of the
Holders of each Series of Securities that it will duly and punctually pay the
principal of and interest, if any, on the Securities of that Series in
accordance with the terms of such Securities and this Indenture.

         Section 4.2. SEC Reports.

                  The Company shall deliver to the Trustee within 15 days after
it files them with the SEC copies of the annual reports and of the information,
documents, and other reports (or copies of such portions of any of the foregoing
as the SEC may by rules and regulations prescribe) which the Company is required
to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The
Company also shall comply with the other provisions of TIA ss. 314(a).

         Section 4.3. Compliance Certificate.

                  The Company shall deliver to the Trustee, within 90 days after
the end of each fiscal year of the Company, an Officers' Certificate stating
that a review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his knowledge the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions hereof
(or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he may have knowledge).

                  The Company will, so long as any of the Securities are
outstanding, deliver to the Trustee, forthwith upon becoming aware of any
Default or Event of Default, an Officers' Certificate specifying such Default or
Event of Default and what action the Company is taking or proposes to take with
respect thereto.

         Section 4.4. Stay, Extension and Usury Laws.

                  The Company covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law
wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture or the Securities; and the
Company (to the extent it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law and covenants that it will not, by resort
to any such law, hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law has been enacted.

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<PAGE>   23

         Section 4.5. Corporate Existence.

                  Subject to Article V, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate
existence and the corporate, partnership or other existence of each Significant
Subsidiary in accordance with the respective organizational documents of each
Significant Subsidiary and the rights (charter and statutory), licenses and
franchises of the Company and its Significant Subsidiaries; provided, however,
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any Significant
Subsidiary, if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and
its Subsidiaries taken as a whole and that the loss thereof is not adverse in
any material respect to the Holders.

         Section 4.6. Taxes.

                  The Company shall, and shall cause each of its Significant
Subsidiaries to, pay prior to delinquency all taxes, assessments and
governmental levies, except as contested in good faith and by appropriate
proceedings.

                                   ARTICLE V.
                                   SUCCESSORS

         Section 5.1. When Company May Merge, Etc.

                  The Company shall not consolidate with or merge into any other
person in a transaction in which we are not the surviving entity, or convey,
transfer or lease all or substantially all of its properties and assets to any
person (a "successor person"), unless:

                  (a) the successor person (if any) is a corporation,
         partnership, trust or other entity organized and validly existing under
         the laws of Singapore or any U.S. domestic jurisdiction and expressly
         assumes the Company's obligations on the Securities and under this
         Indenture and

                  (b) immediately after giving effect to the transaction, no
         Default or Event of Default, shall have occurred and be continuing.

                  The Company shall deliver to the Trustee prior to the
consummation of the proposed transaction an Officers' Certificate to the
foregoing effect and an Opinion of Counsel stating that the proposed transaction
and such supplemental indenture comply with this Indenture.

         Section 5.2. Successor Corporation Substituted.

                  Upon any consolidation or merger, or any sale, lease,
conveyance or other disposition of all or substantially all of the assets of the
Company in accordance with Section 5.1, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such sale,
lease, conveyance or other disposition is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this

18

<PAGE>   24

Indenture with the same effect as if such successor person has been named
as the Company herein; provided, however, that the predecessor Company in the
case of a sale, lease, conveyance or other disposition shall not be released
from the obligation to pay the principal of and interest, if any, on the
Securities.

                                  ARTICLE VI.
                              DEFAULTS AND REMEDIES

         Section 6.1. Events of Default.

                  "Event of Default," wherever used herein with respect to
Securities of any Series, means any one of the following events, unless in the
establishing Board Resolution, supplemental indenture or Officers' Certificate,
it is provided that such Series shall not have the benefit of said Event of
Default:

                  (a) default in the payment of any interest on any Security of
         that Series when it becomes due and payable, and continuance of such
         default for a period of 30 days (unless the entire amount of such
         payment is deposited by the Company with the Trustee or with a Paying
         Agent prior to the expiration of such period of 30 days); or

                  (b) default in the payment of the principal of any Security of
         that Series at its Maturity; or

                  (c) default in the deposit of any sinking fund payment, when
         and as due in respect of any Security of that Series; or

                  (d) default in the performance or breach of any covenant or
         warranty of the Company in this Indenture (other than a covenant or
         warranty that has been included in this Indenture solely for the
         benefit of Series of Securities other than that Series), which default
         continues uncured for a period of 90 days after there has been given,
         by registered or certified mail, to the Company by the Trustee or to
         the Company and the Trustee by the Holders of at least 25% in principal
         amount of the outstanding Securities of that Series a written notice
         specifying such default or breach and requiring it to be remedied and
         stating that such notice is a "Notice of Default" hereunder; or

                  (e) a default under any Debt of the Company (including a
         default with respect to Securities of any Series other than that
         Series) or any Subsidiary, whether such Debt now exists or shall
         hereafter be created, if (A) such default results from the failure to
         pay any such Debt when it becomes due, (B) the principal amount of such
         Debt, together with the principal amount of any other such Debt in
         default for failure to pay principal at stated final maturity or the
         maturity of which has been so accelerated, aggregates $100 million or
         more at any one time outstanding, and (C) such Debt is not discharged
         or such acceleration is not rescinded or annulled within 30 days after
         written notice to the Company by the holder or holders of such Debt in
         the manner provided for in the applicable debt instrument; provided,
         that if the default with respect to such Debt is remedied or cured by
         the Company or waived by the holders of such Debt before entry of
         judgment in favor of the relevant trustee, then the Event of Default
         under this Indenture will be deemed likewise to have been remedied,
         cured or waived; or

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<PAGE>   25

                  (f) the Company or any of its Significant Subsidiaries
         pursuant to or within the meaning of any Bankruptcy Law:

                           (i) commences a voluntary case,

                           (ii) consents to the entry of an order for relief
                  against it in an involuntary case,

                           (iii) consents to the appointment of a Custodian of
                  it or for all or substantially all of its property,

                           (iv) makes a general assignment for the benefit of
                  its creditors, or

                           (v) generally is unable to pay its debts as the same
                  become due; or

                  (g) a court of competent jurisdiction enters an order or
         decree under any Bankruptcy Law that:

                           (i) is for relief against the Company or any of its
                  Significant Subsidiaries in an involuntary case,

                           (ii) appoints a Custodian of the Company or any of
                  its Significant Subsidiaries or for all or substantially all
                  of its property, or

                           (iii) orders the liquidation of the Company or any of
                  its Significant Subsidiaries,

and the order or decree remains unstayed and in effect for 60 days; or

                  (h) any other Event of Default provided with respect to
         Securities of that Series, which is specified in a Board Resolution, a
         supplemental indenture hereto or an Officers' Certificate, in
         accordance with Section 2.2.18.

                  No Event of Default with respect to a particular Series of
Securities (except with respect to subsections (f) and (g) above) necessarily
constitutes an Event of Default with respect to any other Series of Securities.

                  The term "Bankruptcy Law" means title 11, U.S. Code or any
similar Federal or State law for the relief of debtors. The term "Custodian"
means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

         Section 6.2. Acceleration of Maturity; Rescission and Annulment.

                  If an Event of Default with respect to Securities of any
Series at the time outstanding occurs and is continuing (other than an Event of
Default referred to in Section 6.1(f) or (g)) then in every such case the
Trustee or the Holders of not less than 25% in principal amount of the
outstanding Securities of that Series may declare the principal amount (or, if
any Securities of that Series are Discount Securities, such portion of the
principal amount as may be

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<PAGE>   26

specified in the terms of such Securities) of and accrued and unpaid interest,
if any, on all of the Securities of that Series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) and accrued and unpaid interest, if any, shall become immediately due
and payable. If an Event of Default specified in Section 6.1(f) or (g) shall
occur, the principal amount (or specified amount) of and accrued and unpaid
interest, if any, on all outstanding Securities shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder.

                  At any time after such a declaration of acceleration with
respect to any Series has been made and before a judgment or decree for payment
of the money due has been obtained by the Trustee as hereinafter in this Article
provided, the Holders of a majority in principal amount of the outstanding
Securities of that Series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if:

                  (a) the Company has paid or deposited with the Trustee a sum
         sufficient to pay

                           (i) all overdue interest, if any, on all Securities
                  of that Series,

                           (ii) the principal of any Securities of that Series
                  which have become due otherwise than by such declaration of
                  acceleration and interest thereon at the rate or rates
                  prescribed therefor in such Securities,

                           (iii) to the extent that payment of such interest is
                  lawful, interest upon any overdue principal and overdue
                  interest at the rate or rates prescribed therefor in such
                  Securities, and

                           (iv) all sums paid or advanced by the Trustee
                  hereunder and the reasonable compensation, expenses,
                  disbursements and advances of the Trustee, its agents and
                  counsel;

and

                  (b) all Events of Default with respect to Securities of that
         Series, other than the non-payment of the principal of Securities of
         that Series which have become due solely by such declaration of
         acceleration, have been cured or waived as provided in Section 6.13.

                  No such rescission shall affect any subsequent Default or
impair any right consequent thereon.

         Section 6.3. Collection of Indebtedness and Suits for Enforcement by
Trustee.

                  The Company covenants that if

                  (a) default is made in the payment of any interest on any
         Security when such interest becomes due and payable and such default
         continues for a period of 30 days, or

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<PAGE>   27

                  (b) default is made in the payment of principal of any
         Security at the Maturity thereof, or

                  (c) default is made in the deposit of any sinking fund payment
         when and as due by the terms of a Security,

then, the Company will, upon demand of the Trustee, pay to it, for the benefit
of the Holders of such Securities, the whole amount then due and payable on such
Securities for principal and interest and, to the extent that payment of such
interest shall be legally enforceable, interest on any overdue principal or any
overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

                  If the Company fails to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and
unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon such Securities
and collect the moneys adjudged or deemed to be payable in the manner provided
by law out of the property of the Company or any other obligor upon such
Securities, wherever situated.

                  If an Event of Default with respect to any Securities of any
Series occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders of Securities of
such Series by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.

         Section 6.4. Trustee May File Proofs of Claim.

                  In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,

                  (a) to file and prove a claim for the whole amount of
         principal and interest owing and unpaid in respect of the Securities
         and to file such other papers or documents as may be necessary or
         advisable in order to have the claims of the Trustee (including any
         claim for the reasonable compensation, expenses, disbursements and
         advances of the Trustee, its agents and counsel) and of the Holders
         allowed in such judicial proceeding, and

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<PAGE>   28

                  (b) to collect and receive any moneys or other property
         payable or deliverable on any such claims and to distribute the same,

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.7.

                  Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.

         Section 6.5. Trustee May Enforce Claims Without Possession of
Securities.

                  All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

         Section 6.6. Application of Money Collected.

                  Any money collected by the Trustee pursuant to this Article
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal
or interest, upon presentation of the Securities and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

                  First: To the payment of all amounts due the Trustee under
Section 7.7; and

                  Second: To the payment of the amounts then due and unpaid for
principal of and interest on the Securities in respect of which or for the
benefit of which such money has been collected, ratably, without preference or
priority of any kind, according to the amounts due and payable on such
Securities for principal and interest, respectively; and

                  Third: To the Company.

         Section 6.7. Limitation on Suits.

                  No Holder of any Security of any Series shall have any right
to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless

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<PAGE>   29

                  (a) such Holder has previously given written notice to the
         Trustee of a continuing Event of Default with respect to the Securities
         of that Series;

                  (b) the Holders of not less than 25% in principal amount of
         the outstanding Securities of that Series shall have made written
         request to the Trustee to institute proceedings in respect of such
         Event of Default in its own name as Trustee hereunder;

                  (c) such Holder or Holders have offered to the Trustee
         reasonable indemnity against the costs, expenses and liabilities to be
         incurred in compliance with such request;

                  (d) the Trustee for 60 days after its receipt of such notice,
         request and offer of indemnity has failed to institute any such
         proceeding; and

                  (e) no direction inconsistent with such written request has
         been given to the Trustee during such 60-day period by the Holders of a
         majority in principal amount of the outstanding Securities of that
         Series;

it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such
Holders.

         Section 6.8. Unconditional Right of Holders to Receive Principal and
Interest.

                  Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest, if any, on
such Security on the Stated Maturity or Stated Maturities expressed in such
Security (or, in the case of redemption, on the redemption date) and to
institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder.

         Section 6.9. Restoration of Rights and Remedies.

                  If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.

         Section 6.10. Rights and Remedies Cumulative.

                  Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in

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<PAGE>   30

addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

         Section 6.11. Delay or Omission Not Waiver.

                  No delay or omission of the Trustee or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article or by law to the Trustee or to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by the Trustee or by the Holders,
as the case may be.

         Section 6.12. Control by Holders.

                  The Holders of a majority in principal amount of the
outstanding Securities of any Series shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, with respect
to the Securities of such Series, provided that

                  (a) such direction shall not be in conflict with any rule of
         law or with this Indenture,

                  (b) the Trustee may take any other action deemed proper by the
         Trustee which is not inconsistent with such direction, and

                  (c) subject to the provisions of Section 6.1, the Trustee
         shall have the right to decline to follow any such direction if the
         Trustee in good faith shall, by a Responsible Officer of the Trustee,
         determine that the proceeding so directed would involve the Trustee in
         personal liability.

         Section 6.13. Waiver of Past Defaults.

                  The Holders of not less than a majority in principal amount of
the outstanding Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default hereunder with respect to such
Series and its consequences, except a Default in the payment of the principal of
or interest on any Security of such Series (provided, however, that the Holders
of a majority in principal amount of the outstanding Securities of any Series
may rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration). Upon any such waiver, such
Default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

         Section 6.14. Undertaking for Costs.

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<PAGE>   31

                  All parties to this Indenture agree, and each Holder of any
Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in principal
amount of the outstanding Securities of any Series, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of or interest on
any Security on or after the Stated Maturity or Stated Maturities expressed in
such Security (or, in the case of redemption, on the redemption date).

                                  ARTICLE VII.
                                    TRUSTEE

         Section 7.1. Duties of Trustee.

                  (a) If an Event of Default has occurred and is continuing, the
         Trustee shall exercise the rights and powers vested in it by this
         Indenture and use the same degree of care and skill in their exercise
         as a prudent man would exercise or use under the circumstances in the
         conduct of his own affairs.

                  (b) Except during the continuance of an Event of Default:

                           (i) The Trustee need perform only those duties that
                  are specifically set forth in this Indenture and no others.

                           (ii) In the absence of bad faith on its part, the
                  Trustee may conclusively rely, as to the truth of the
                  statements and the correctness of the opinions expressed
                  therein, upon Officers' Certificates or Opinions of Counsel
                  furnished to the Trustee and conforming to the requirements of
                  this Indenture; however, in the case of any such Officers'
                  Certificates or Opinions of Counsel which by any provisions
                  hereof are specifically required to be furnished to the
                  Trustee, the Trustee shall examine such Officers' Certificates
                  and Opinions of Counsel to determine whether or not they
                  conform to the requirements of this Indenture.

                  (c) The Trustee may not be relieved from liability for its own
         negligent action, its own negligent failure to act or its own willful
         misconduct, except that:

                           (i) This paragraph does not limit the effect of
                  paragraph (b) of this Section.

                           (ii) The Trustee shall not be liable for any error of
                  judgment made in good faith by a Responsible Officer, unless
                  it is proved that the Trustee was negligent in ascertaining
                  the pertinent facts.

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<PAGE>   32

                           (iii) The Trustee shall not be liable with respect to
                  any action taken, suffered or omitted to be taken by it with
                  respect to Securities of any Series in good faith in
                  accordance with the direction of the Holders of a majority in
                  principal amount of the outstanding Securities of such Series
                  relating to the time, method and place of conducting any
                  proceeding for any remedy available to the Trustee, or
                  exercising any trust or power conferred upon the Trustee,
                  under this Indenture with respect to the Securities of such
                  Series.

                  (d) Every provision of this Indenture that in any way relates
         to the Trustee is subject to paragraph (a), (b) and (c) of this
         Section.

                  (e) The Trustee may refuse to perform any duty or exercise any
         right or power unless it receives indemnity satisfactory to it against
         any loss, liability or expense.

                  (f) The Trustee shall not be liable for interest on any money
         received by it except as the Trustee may agree in writing with the
         Company. Money held in trust by the Trustee need not be segregated from
         other funds except to the extent required by law.

                  (g) No provision of this Indenture shall require the Trustee
         to risk its own funds or otherwise incur any financial liability in the
         performance of any of its duties, or in the exercise of any of its
         rights or powers, if it shall have reasonable grounds for believing
         that repayment of such funds or adequate indemnity against such risk is
         not reasonably assured to it.

                  (h) The Paying Agent, the Registrar and any authenticating
         agent shall be entitled to the protections, immunities and standard of
         care as are set forth in paragraphs (a), (b) and (c) of this Section
         with respect to the Trustee.

         Section 7.2. Rights of Trustee.

                  (a) The Trustee may rely on and shall be protected in acting
         or refraining from acting as a result of its reasonable belief that any
         document was genuine and had been signed or presented by the proper
         person. The Trustee need not investigate any fact or matter stated in
         the document.

                  (b) Before the Trustee acts or refrains from acting, it may
         require an Officers' Certificate or an Opinion of Counsel. The Trustee
         shall not be liable for any action it takes or omits to take in good
         faith in reliance on such Officers' Certificate or Opinion of Counsel.

                  (c) The Trustee may act through agents and shall not be
         responsible for the misconduct or negligence of any agent appointed
         with due care; provided that such agent agree as a condition to its
         engagement that it shall be responsible to the Company for its own
         misconduct or negligence. No Depository shall be deemed an agent of the
         Trustee and the Trustee shall not be responsible for any act or
         omission by any Depository.

                  (d) The Trustee shall not be liable for any action it takes or
         omits to take in good faith which it believes to be authorized or
         within its rights or powers.

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<PAGE>   33

                  (e) The Trustee may consult with counsel and the advice of
         such counsel or any Opinion of Counsel shall be full and complete
         authorization and protection in respect of any action taken, suffered
         or omitted by it hereunder in good faith and in reliance thereon.

                  (f) The Trustee shall be under no obligation to exercise any
         of the rights or powers vested in it by this Indenture at the request
         or direction of any of the Holders of Securities unless such Holders
         shall have offered to the Trustee reasonable security or indemnity
         against the costs, expenses and liabilities which might be incurred by
         it in compliance with such request or direction.

         Section 7.3. Individual Rights of Trustee.

                  The Trustee in its individual or any other capacity may become
the owner or pledgee of Securities and may otherwise deal with the Company or an
Affiliate with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee is also subject to Sections 7.10
and 7.11.

         Section 7.4. Trustee's Disclaimer.

                  The Trustee makes no representation as to the validity or
adequacy of this Indenture or the Securities, it shall not be accountable for
the Company's use of the proceeds from the Securities, and it shall not be
responsible for any statement in the Securities other than its authentication.

         Section 7.5. Notice of Defaults.

                  If a Default or Event of Default occurs and is continuing with
respect to the Securities of any Series and if it is known to a Responsible
Officer of the Trustee, the Trustee shall mail to each Securityholder of the
Securities of that Series and, if any Bearer Securities are outstanding, publish
on one occasion in an Authorized Newspaper, notice of a Default or Event of
Default within 90 days after it occurs or, if later, after a Responsible Officer
of the Trustee has knowledge of such Default or Event of Default. Except in the
case of a Default or Event of Default in payment of principal of or interest on
any Security of any Series, the Trustee may withhold the notice if and so long
as its corporate trust committee or a committee of its Responsible Officers in
good faith determines that withholding the notice is in the interests of
Securityholders of that Series.

         Section 7.6. Reports by Trustee to Holders.

                  Within 60 days after May 15 in each year, the Trustee shall
transmit by mail to all Securityholders, as their names and addresses appear on
the register kept by the Registrar and, if any Bearer Securities are
outstanding, publish in an Authorized Newspaper, a brief report dated as of such
May 15, in accordance with, and to the extent required under, TIA ss. 313.

                  A copy of each report at the time of its mailing to
Securityholders of any Series shall be filed with the SEC and each stock
exchange on which the Securities of that Series are

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<PAGE>   34

listed. The Company shall promptly notify the Trustee when Securities of any
Series are listed on any stock exchange.

         Section 7.7. Compensation and Indemnity.

                  The Company shall pay to the Trustee from time to time
reasonable compensation for its services. The Trustee's compensation shall not
be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred by it. Such expenses shall include the
reasonable compensation and expenses of the Trustee's agents and counsel.

                  The Company shall indemnify the Trustee (including the cost of
defending itself) against any loss, liability or expense incurred by it except
as set forth in the next paragraph in the performance of its duties under this
Indenture as Trustee or Agent. The Trustee shall notify the Company promptly of
any claim for which it may seek indemnity. The Company shall defend the claim
and the Trustee shall cooperate in the defense. The Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel. The Company need not pay for any settlement made without its consent,
which consent shall not be unreasonably withheld. This indemnification shall
apply to officers, directors, employees, shareholders and agents of the Trustee.

                  The Company need not reimburse any expense or indemnify
against any loss or liability incurred by the Trustee or by any officer,
director, employee, shareholder or agent of the Trustee through negligence or
bad faith.

                  To secure the Company's payment obligations in this Section,
the Trustee shall have a lien prior to the Securities of any Series on all money
or property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Securities of that Series.

                  When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.1(f) or (g) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

         Section 7.8. Replacement of Trustee.

                  A resignation or removal of the Trustee and appointment of a
successor Trustee shall become effective only upon the successor Trustee's
acceptance of appointment as provided in this Section.

                  The Trustee may resign with respect to the Securities of one
or more Series by so notifying the Company. The Holders of a majority in
principal amount of the Securities of any Series may remove the Trustee with
respect to that Series by so notifying the Trustee and the Company. The Company
may remove the Trustee with respect to Securities of one or more Series if:

                  (a) the Trustee fails to comply with Section 7.10;

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<PAGE>   35

                  (b) the Trustee is adjudged a bankrupt or an insolvent or an
         order for relief is entered with respect to the Trustee under any
         Bankruptcy Law;

                  (c) a Custodian or public officer takes charge of the Trustee
         or its property; or

                  (d) the Trustee becomes incapable of acting.

                  If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the
Holders of a majority in principal amount of the then outstanding Securities may
appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

                  If a successor Trustee with respect to the Securities of any
one or more Series does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company or the Holders
of at least 10% in principal amount of the Securities of the applicable Series
may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

                  If the Trustee with respect to the Securities of any one or
more Series fails to comply with Section 7.10, any Securityholder of the
applicable Series may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately after that,
the retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee subject to the lien provided for in Section 7.7, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
with respect to each Series of Securities for which it is acting as Trustee
under this Indenture. A successor Trustee shall mail a notice of its succession
to each Securityholder of each such Series and, if any Bearer Securities are
outstanding, publish such notice on one occasion in an Authorized Newspaper.
Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the
Company's obligations under Section 7.7 hereof shall continue for the benefit of
the retiring trustee with respect to expenses and liabilities incurred by it
prior to such replacement.

         Section 7.9. Successor Trustee by Merger, etc.

                  If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee.

         Section 7.10. Eligibility; Disqualification.

                  This Indenture shall always have a Trustee who satisfies the
requirements of TIA ss. 310(a)(1), (2) and (5). The Trustee shall always have a
combined capital and surplus of at least $25,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA
ss. 310(b).

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<PAGE>   36

         Section 7.11. Preferential Collection of Claims Against Company.

                  The Trustee is subject to TIA ss. 311(a), excluding any
creditor relationship listed in TIA ss. 311(b). A Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated.

                                 ARTICLE VIII.
                     SATISFACTION AND DISCHARGE; DEFEASANCE

         Section 8.1. Satisfaction and Discharge of Indenture.

                  This Indenture shall upon Company Order cease to be of further
effect (except as hereinafter provided in this Section 8.1), and the Trustee, at
the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

                  (a) either

                           (i) all Securities theretofore authenticated and
                  delivered (other than Securities that have been destroyed,
                  lost or stolen and that have been replaced or paid) have been
                  delivered to the Trustee for cancellation; or

                           (ii) all such Securities not theretofore delivered to
                  the Trustee for cancellation

                                    (1) have become due and payable, or

                                    (2) will become due and payable at their
                           Stated Maturity within one year, or

                                    (3) are to be called for redemption within
                           one year under arrangements satisfactory to the
                           Trustee for the giving of notice of redemption by the
                           Trustee in the name, and at the expense, of the
                           Company, or

                                    (4) are deemed paid and discharged pursuant
                           to Section 8.3, as applicable;

and the Company, in the case of (1), (2) or (3) above, has deposited or caused
to be deposited with the Trustee as trust funds in trust an amount sufficient
for the purpose of paying and discharging the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or to
the Stated Maturity or redemption date, as the case may be;

                  (b) the Company has paid or caused to be paid all other sums
         payable hereunder by the Company; and

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<PAGE>   37

                  (c) the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent herein provided for relating to the satisfaction and
         discharge of this Indenture have been complied with.

                  Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 7.7, and,
if money shall have been deposited with the Trustee pursuant to clause (a) of
this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1 8.2 and 8.5 shall
survive.

         Section 8.2. Application of Trust Funds; Indemnification.

                  (a) Subject to the provisions of Section 8.5, all money
         deposited with the Trustee pursuant to Section 8.1, all money and U.S.
         Government Obligations or Foreign Government Obligations deposited with
         the Trustee pursuant to Section 8.3 or 8.4 and all money received by
         the Trustee in respect of U.S. Government Obligations or Foreign
         Government Obligations deposited with the Trustee pursuant to Section
         8.3 or 8.4, shall be held in trust and applied by it, in accordance
         with the provisions of the Securities and this Indenture, to the
         payment, either directly or through any Paying Agent (including the
         Company acting as its own Paying Agent) as the Trustee may determine,
         to the persons entitled thereto, of the principal and interest for
         whose payment such money has been deposited with or received by the
         Trustee or to make mandatory sinking fund payments or analogous
         payments as contemplated by Sections 8.3 or 8.4.

                  (b) The Company shall pay and shall indemnify the Trustee
         against any tax, fee or other charge imposed on or assessed against
         U.S. Government Obligations or Foreign Government Obligations deposited
         pursuant to Sections 8.3 or 8.4 or the interest and principal received
         in respect of such obligations other than any payable by or on behalf
         of Holders.

                  (c) The Trustee shall deliver or pay to the Company from time
         to time upon Company Request any U.S. Government Obligations or Foreign
         Government Obligations or money held by it as provided in Sections 8.3
         or 8.4 which, in the opinion of a nationally recognized firm of
         independent certified public accountants expressed in a written
         certification thereof delivered to the Trustee, are then in excess of
         the amount thereof which then would have been required to be deposited
         for the purpose for which such U.S. Government Obligations or Foreign
         Government Obligations or money were deposited or received. This
         provision shall not authorize the sale by the Trustee of any U.S.
         Government Obligations or Foreign Government Obligations held under
         this Indenture.

         Section 8.3. Legal Defeasance of Securities of any Series.

                  Unless this Section 8.3 is otherwise specified, pursuant to
Section 2.2.20, to be inapplicable to Securities of any Series, the Company
shall be deemed to have paid and discharged the entire indebtedness on all the
outstanding Securities of such Series on the 91st day after the date of the
deposit referred to in subparagraph (d) hereof, and the provisions of this
Indenture, as it relates to such outstanding Securities of such Series, shall no
longer be in effect

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<PAGE>   38

(and the Trustee, at the expense of the Company, shall, at Company Request,
execute proper instruments acknowledging the same), except as to:

                  (a) the rights of Holders of Securities of such Series to
         receive, from the trust funds described in subparagraph (d) hereof, (i)
         payment of the principal of and each installment of principal of and
         interest on the outstanding Securities of such Series on the Stated
         Maturity of such principal or installment of principal or interest and
         (ii) the benefit of any mandatory sinking fund payments applicable to
         the Securities of such Series on the day on which such payments are due
         and payable in accordance with the terms of this Indenture and the
         Securities of such Series;

                  (b) the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and
         8.5; and

                  (c) the rights, powers, trust and immunities of the Trustee
         hereunder;

provided that, the following conditions shall have been satisfied:

                  (d) the Company shall have deposited or caused to be deposited
         irrevocably with the Trustee as trust funds in trust for the purpose of
         making the following payments, specifically pledged as security for and
         dedicated solely to the benefit of the Holders of such Securities (i)
         in the case of Securities of such Series denominated in Dollars, cash
         in Dollars (or such other money or currencies as shall then be legal
         tender in the United States) and/or U.S. Government Obligations, or
         (ii) in the case of Securities of such Series denominated in a Foreign
         Currency (other than a composite currency), money and/or Foreign
         Government Obligations, which through the payment of interest and
         principal in respect thereof, in accordance with their terms, will
         provide (and without reinvestment and assuming no tax liability will be
         imposed on such Trustee), not later than one day before the due date of
         any payment of money, an amount in cash, sufficient, in the opinion of
         a nationally recognized firm of independent public accountants
         expressed in a written certification thereof delivered to the Trustee,
         to pay and discharge each installment of principal (including mandatory
         sinking fund or analogous payments) of and interest, if any, on all the
         Securities of such Series on the dates such installments of interest or
         principal are due;

                  (e) such deposit will not result in a breach or violation of,
         or constitute a default under, this Indenture or any other agreement or
         instrument to which the Company is a party or by which it is bound;

                  (f) no Default or Event of Default with respect to the
         Securities of such Series shall have occurred and be continuing on the
         date of such deposit or during the period ending on the 91st day after
         such date;

                  (g) the Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel to the effect that (i)
         the Company has received from, or there has been published by, the
         Internal Revenue Service a ruling, or (ii) since the date of execution
         of this Indenture, there has been a change in the applicable Federal
         income tax law, in either case to the effect that, and based thereon
         such Opinion of Counsel shall confirm that, the Holders of the
         Securities of such Series will not recognize income, gain

33

<PAGE>   39

         or loss for Federal income tax purposes as a result of such deposit,
         defeasance and discharge and will be subject to Federal income tax on
         the same amount and in the same manner and at the same times as would
         have been the case if such deposit, defeasance and discharge had not
         occurred;

                  (h) the Company shall have delivered to the Trustee an
         Officers' Certificate stating that the deposit was not made by the
         Company with the intent of preferring the Holders of the Securities of
         such Series over any other creditors of the company or with the intent
         of defeating, hindering, delaying or defrauding any other creditors of
         the Company;

                  (i) such deposit shall not result in the trust arising from
         such deposit constituting an investment company (as defined in the
         Investment Company Act of 1940, as amended), or such trust shall be
         qualified under such Act or exempt from regulation thereunder; and

                  (j) the Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that all
         conditions precedent provided for relating to the defeasance
         contemplated by this Section have been complied with.

         Section 8.4. Covenant Defeasance.

                  Unless this Section 8.4 is otherwise specified pursuant to
Section 2.2.20 to be inapplicable to Securities of any Series, on and after the
91st day after the date of the deposit referred to in subparagraph (a) hereof,
the Company may omit to comply with any term, provision or condition set forth
under Sections 4.2, 4.3, 4.4, 4.5, 4.6, and 5.1 as well as any additional
covenants contained in a supplemental indenture hereto for a particular Series
of Securities or a Board Resolution or an Officers' Certificate delivered
pursuant to Section 2.2.20 (and the failure to comply with any such covenants
shall not constitute a Default or Event of Default under Section 6.1) and the
occurrence of any event described in clause (e) of Section 6.1 shall not
constitute a Default or Event of Default hereunder, with respect to the
Securities of such Series, provided that the following conditions shall have
been satisfied:

                  (a) With reference to this Section 8.4, the Company has
         deposited or caused to be irrevocably deposited (except as provided in
         Section 8.2(c)) with the Trustee as trust funds in trust, specifically
         pledged as security for, and dedicated solely to, the benefit of the
         Holders of such Securities (i) in the case of Securities of such Series
         denominated in Dollars, cash in Dollars (or such other money or
         currencies as shall then be legal tender in the United States) and/or
         U.S. Government Obligations, or (ii) in the case of Securities of such
         Series denominated in a Foreign Currency (other than a composite
         currency), money and/or Foreign Government Obligations, which through
         the payment of interest and principal in respect thereof, in accordance
         with their terms, will provide (and without reinvestment and assuming
         no tax liability will be imposed on such Trustee), not later than one
         day before the due date of any payment of money, an amount in cash,
         sufficient, in the opinion of a nationally recognized firm of
         independent certified public accountants expressed in a written
         certification thereof delivered to the Trustee, to

34

<PAGE>   40

         pay principal and interest, if any, on and any mandatory sinking fund
         in respect of the Securities of such Series on the dates such
         installments of interest or principal are due;

                  (b) Such deposit will not result in a breach or violation of,
         or constitute a default under, this Indenture or any other agreement or
         instrument to which the Company is a party or by which it is bound;

                  (c) No Default or Event of Default with respect to the
         Securities of such Series shall have occurred and be continuing on the
         date of such deposit or during the period ending on the 91st day after
         such date;

                  (d) the Company shall have delivered to the Trustee an Opinion
         of Counsel confirming that Holders of the Securities of such Series
         will not recognize income, gain or loss for federal income tax purposes
         as a result of such deposit and defeasance and will be subject to
         federal income tax on the same amounts, in the same manner and at the
         same times as would have been the case if such deposit and defeasance
         had not occurred;

                  (e) the Company shall have delivered to the Trustee an
         Officers' Certificate stating the deposit was not made by the Company
         with the intent of preferring the Holders of the Securities of such
         Series over any other creditors of the Company or with the intent of
         defeating, hindering, delaying or defrauding any other creditors of the
         Company; and

                  (f) The Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that all
         conditions precedent herein provided for relating to the defeasance
         contemplated by this Section have been complied with.

         Section 8.5. Repayment to Company.

                  The Trustee and the Paying Agent shall pay to the Company upon
request any money held by them for the payment of principal and interest that
remains unclaimed for two years. After that, Securityholders entitled to the
money must look to the Company for payment as general creditors unless an
applicable abandoned property law designates another person.

                                  ARTICLE IX.
                             AMENDMENTS AND WAIVERS

         Section 9.1. Without Consent of Holders.

                  The Company and the Trustee may amend or supplement this
Indenture or the Securities of one or more Series without the consent of any
Securityholder:

                  (a) to cure any ambiguity, defect or inconsistency;

                  (b) to comply with Article V;

                  (c) to provide for uncertificated Securities in addition to or
         in place of certificated Securities;

35

<PAGE>   41

                  (d) to make any change that does not adversely affect the
         rights of any Securityholder;

                  (e) to provide for the issuance of and establish the form and
         terms and conditions of Securities of any Series as permitted by this
         Indenture;

                  (f) to evidence and provide for the acceptance of appointment
         hereunder by a successor Trustee with respect to the Securities of one
         or more Series and to add to or change any of the provisions of this
         Indenture as shall be necessary to provide for or facilitate the
         administration of the trusts hereunder by more than one Trustee; or

                  (g) to comply with requirements of the SEC in order to effect
         or maintain the qualification of this Indenture under the TIA.

         Section 9.2. With Consent of Holders.

                  The Company and the Trustee may enter into a supplemental
indenture with the written consent of the Holders of at least a majority in
principal amount of the outstanding Securities of each Series affected by such
supplemental indenture (including consents obtained in connection with a tender
offer or exchange offer for the Securities of such Series), for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying in
any manner the rights of the Securityholders of each such Series. Except as
provided in Section 6.13, the Holders of at least a majority in principal amount
of the outstanding Securities of each Series affected by such waiver by notice
to the Trustee (including consents obtained in connection with a tender offer or
exchange offer for the Securities of such Series) may waive compliance by the
Company with any provision of this Indenture or the Securities with respect to
such Series.

                  It shall not be necessary for the consent of the Holders of
Securities under this Section 9.2 to approve the particular form of any proposed
supplemental indenture or waiver, but it shall be sufficient if such consent
approves the substance thereof. After a supplemental indenture or waiver under
this section becomes effective, the Company shall mail to the Holders of
Securities affected thereby and, if any Bearer Securities affected thereby are
outstanding, publish on one occasion in an Authorized Newspaper, a notice
briefly describing the supplemental indenture or waiver. Any failure by the
Company to mail or publish such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture or waiver.

         Section 9.3. Limitations.

                  Without the consent of each Securityholder affected, an
amendment or waiver may not:

                  (a) change the amount of Securities whose Holders must consent
         to an amendment, supplement or waiver;

                  (b) reduce the rate of or extend the time for payment of
         interest (including default interest) on any Security;

36

<PAGE>   42
                  (c) reduce the principal or change the Stated Maturity of
         any Security or reduce the amount of, or postpone the date fixed for,
         the payment of any sinking fund or analogous obligation;

                  (d) reduce the principal amount of Discount Securities payable
         upon acceleration of the maturity thereof;

                  (e) waive a Default or Event of Default in the payment of the
         principal of or interest, if any, on any Security (except a rescission
         of acceleration of the Securities of any Series by the Holders of at
         least a majority in principal amount of the outstanding Securities of
         such Series and a waiver of the payment default that resulted from such
         acceleration);

                  (f) make the principal of or interest, if any, on any Security
         payable in any currency other than that stated in the Security;

                  (g) make any change in Sections 6.8, 6.13, 9.3 (this
         sentence), 10.15 or 10.16; or

                  (h) waive a redemption payment with respect to any Security or
         change any of the provisions with respect to the redemption of any
         Securities.

         Section 9.4. Compliance with Trust Indenture Act.

                  Every amendment to this Indenture or the Securities of one or
more Series shall be set forth in a supplemental indenture hereto that complies
with the TIA as then in effect.

         Section 9.5. Revocation and Effect of Consents.

                  Until an amendment or waiver becomes effective, a consent to
it by a Holder of a Security is a continuing consent by the Holder and every
subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder's Security, even if notation of the consent is not
made on any Security. However, any such Holder or subsequent Holder may revoke
the consent as to his Security or portion of a Security if the Trustee receives
the notice of revocation before the date the amendment or waiver becomes
effective.

                  Any amendment or waiver once effective shall bind every
Securityholder of each Series affected by such amendment or waiver unless it is
of the type described in any of clauses (a) through (g) of Section 9.3. In that
case, the amendment or waiver shall bind each Holder of a Security who has
consented to it and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder's Security.

         Section 9.6. Notation on or Exchange of Securities.

                  The Trustee may place an appropriate notation about an
amendment or waiver on any Security of any Series thereafter authenticated. The
Company in exchange for Securities of that Series may issue and the Trustee
shall authenticate upon request new Securities of that Series that reflect the
amendment or waiver.

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<PAGE>   43

         Section 9.7. Trustee Protected.

                  In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be entitled
to receive, and (subject to Section 7.1) shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Trustee shall sign
all supplemental indentures, except that the Trustee need not sign any
supplemental indenture that adversely affects its rights.

                                   ARTICLE X.
                                  MISCELLANEOUS

         Section 10.1. Trust Indenture Act Controls.

                  If any provision of this Indenture limits, qualifies, or
conflicts with another provision which is required or deemed to be included in
this Indenture by the TIA, such required or deemed provision shall control.

         Section 10.2. Notices.

                  Any notice or communication by the Company or the Trustee to
the other is duly given if in writing and delivered in person or mailed by
first-class mail:

if to the Company:

Chartered Semiconductor Manufacturing Ltd
60 Woodlands Industrial Park D
Street 2, Singapore 738406

Attention: Legal Department

if to the Trustee:

Wells Fargo Bank Minnesota, National Association
213 Court Street, Suite 902
Middletown, Connecticut  06457
USA

Attention: Corporate Trust Services

                  The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.

                  Any notice or communication to a Securityholder shall be
mailed by first-class mail to his address shown on the register kept by the
Registrar and, if any Bearer Securities are outstanding, published in an
Authorized Newspaper. Failure to mail a notice or communication

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<PAGE>   44

to a Securityholder of any Series or any defect in it shall not affect its
sufficiency with respect to other Securityholders of that or any other Series.

                  If a notice or communication is mailed or published in the
manner provided above, within the time prescribed, it is duly given, whether or
not the Securityholder receives it.

                  If the Company mails a notice or communication to
Securityholders, it shall mail a copy to the Trustee and each Agent at the same
time.

         Section 10.3. Communication by Holders with Other Holders.

                  Securityholders of any Series may communicate pursuant to TIA
ss. 312(b) with other Securityholders of that Series or any other Series with
respect to their rights under this Indenture or the Securities of that Series or
all Series. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA ss. 312(c).

         Section 10.4. Certificate and Opinion as to Conditions Precedent.

                  Upon any request or application by the Company to the Trustee
to take any action under this Indenture, the Company shall furnish to the
Trustee:

                  (a) an Officers' Certificate stating that, in the opinion of
         the signers, all conditions precedent, if any, provided for in this
         Indenture relating to the proposed action have been complied with; and

                  (b) an Opinion of Counsel stating that, in the opinion of such
         counsel, all such conditions precedent have been complied with.

                  Section 10.5. Statements Required in Certificate or Opinion.

                  Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than a certificate
provided pursuant to TIA ss. 314(a)(4)) shall comply with the provisions of TIA
ss. 314(e) and shall include:

                  (a) a statement that the person making such certificate or
         opinion has read such covenant or condition;

                  (b) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (c) a statement that, in the opinion of such person, he has
         made such examination or investigation as is necessary to enable him to
         express an informed opinion as to whether or not such covenant or
         condition has been complied with; and

                  (d) a statement as to whether or not, in the opinion of such
         person, such condition or covenant has been complied with.

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<PAGE>   45

         Section 10.6. Rules by Trustee and Agents.

                  The Trustee may make reasonable rules for action by or a
meeting of Securityholders of one or more Series. Any Agent may make reasonable
rules and set reasonable requirements for its functions.

         Section 10.7. Legal Holidays.

                  Unless otherwise provided by Board Resolution, Officers'
Certificate or supplemental indenture for a particular Series, a "Legal Holiday"
is any day that is not a Business Day. If a payment date is a Legal Holiday at a
place of payment, payment may be made at that place on the next succeeding day
that is not a Legal Holiday, and no interest shall accrue for the intervening
period.

         Section 10.8. No Recourse Against Others.

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

         Section 10.9. Counterparts.

                  This Indenture may be executed in any number of counterparts
and by the parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

         Section 10.10. Governing Laws.

                  THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK EXCLUDING (TO THE GREATEST EXTENT POSSIBLE) ANY
RULE OF LAW THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION
OTHER THAN THE STATE OF NEW YORK.

         Section 10.11. No Adverse Interpretation of Other Agreements.

                  This Indenture may not be used to interpret another indenture,
loan or debt agreement of the Company or a Subsidiary. Any such indenture, loan
or debt agreement may not be used to interpret this Indenture.

         Section 10.12. Successors.

                  All agreements of the Company in this Indenture and the
Securities shall bind its successor. All agreements of the Trustee in this
Indenture shall bind its successor.

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<PAGE>   46

         Section 10.13. Severability.

                  In case any provision in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

         Section 10.14. Table of Contents, Headings, Etc.

                  The Table of Contents, Cross Reference Table, and headings of
the Articles and Sections of this Indenture have been inserted for convenience
of reference only, are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.

         Section 10.15. Securities in a Foreign Currency or in ECU.

                  Unless otherwise specified in a Board Resolution, a
supplemental indenture hereto or an Officers' Certificate delivered pursuant to
Section 2.2 of this Indenture with respect to a particular Series of Securities,
whenever for purposes of this Indenture any action may be taken by the Holders
of a specified percentage in aggregate principal amount of Securities of all
Series or all Series affected by a particular action at the time outstanding
and, at such time, there are outstanding Securities of any Series which are
denominated in a coin or currency other than Dollars (including ECUs), then the
principal amount of Securities of such Series which shall be deemed to be
outstanding for the purpose of taking such action shall be that amount of
Dollars that could be obtained for such amount at the Market Exchange Rate at
such time. For purposes of this Section 10.15, "Market Exchange Rate" shall mean
the noon Dollar buying rate in New York City for cable transfers of that
currency as published by the Federal Reserve Bank of New York; provided,
however, in the case of ECUs, Market Exchange Rate shall mean the rate of
exchange determined by the Commission of the European Union (or any successor
thereto) as published in the Official Journal of the European Union (such
publication or any successor publication, the "Journal"). If such Market
Exchange Rate is not available for any reason with respect to such currency, the
Trustee shall use, in its sole discretion and without liability on its part,
such quotation of the Federal Reserve Bank of New York or, in the case of ECUs,
the rate of exchange as published in the Journal, as of the most recent
available date, or quotations or, in the case of ECUs, rates of exchange from
one or more major banks in The City of New York or in the country of issue of
the currency in question or, in the case of ECUs, in Luxembourg or such other
quotations or, in the case of ECUs, rates of exchange as the Trustee, upon
consultation with the Company, shall deem appropriate. The provisions of this
paragraph shall apply in determining the equivalent principal amount in respect
of Securities of a Series denominated in currency other than Dollars in
connection with any action taken by Holders of Securities pursuant to the terms
of this Indenture.

                  All decisions and determinations of the Trustee regarding the
Market Exchange Rate or any alternative determination provided for in the
preceding paragraph shall be in its sole discretion and shall, in the absence of
manifest error, be conclusive to the extent permitted by law for all purposes
and irrevocably binding upon the Company and all Holders.

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<PAGE>   47

         Section 10.16. Judgment Currency.

                  The Company agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of obtaining
judgment in any court it is necessary to convert the sum due in respect of the
principal of or interest or other amount on the Securities of any Series (the
"Required Currency") into a currency in which a judgment will be rendered (the
"Judgment Currency"), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City
of New York the Required Currency with the Judgment Currency on the day on which
final unappealable judgment is entered, unless such day is not a New York
Banking Day, then, the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City
of New York the Required Currency with the Judgment Currency on the New York
Banking Day preceding the day on which final unappealable judgment is entered
and (b) its obligations under this Indenture to make payments in the Required
Currency (i) shall not be discharged or satisfied by any tender, any recovery
pursuant to any judgment (whether or not entered in accordance with subsection
(a)), in any currency other than the Required Currency, except to the extent
that such tender or recovery shall result in the actual receipt, by the payee,
of the full amount of the Required Currency expressed to be payable in respect
of such payments, (ii) shall be enforceable as an alternative or additional
cause of action for the purpose of recovering in the Required Currency the
amount, if any, by which such actual receipt shall fall short of the full amount
of the Required Currency so expressed to be payable, and (iii) shall not be
affected by judgment being obtained for any other sum due under this Indenture.
For purposes of the foregoing, "New York Banking Day" means any day except a
Saturday, Sunday or a legal holiday in The City of New York on which banking
institutions are authorized or required by law, regulation or executive order to
close.

                                  ARTICLE XI.
                                  SINKING FUNDS

         Section 11.1. Applicability of Article.

                  The provisions of this Article shall be applicable to any
sinking fund for the retirement of the Securities of a Series, except as
otherwise permitted or required by any form of Security of such Series issued
pursuant to this Indenture.

                  The minimum amount of any sinking fund payment provided for by
the terms of the Securities of any Series is herein referred to as a "mandatory
sinking fund payment" and any other amount provided for by the terms of
Securities of such Series is herein referred to as an "optional sinking fund
payment." If provided for by the terms of Securities of any Series, the cash
amount of any sinking fund payment may be subject to reduction as provided in
Section 11.2. Each sinking fund payment shall be applied to the redemption of
Securities of any Series as provided for by the terms of the Securities of such
Series.

         Section 11.2. Satisfaction of Sinking Fund Payments with Securities.

                  The Company may, in satisfaction of all or any part of any
sinking fund payment with respect to the Securities of any Series to be made
pursuant to the terms of such Securities

42
<PAGE>   48

(1) deliver outstanding Securities of such Series to which such sinking fund
payment is applicable (other than any of such Securities previously called for
mandatory sinking fund redemption) and (2) apply as credit Securities of such
Series to which such sinking fund payment is applicable and which have been
redeemed either at the election of the Company pursuant to the terms of such
Series of Securities (except pursuant to any mandatory sinking fund) or through
the application of permitted optional sinking fund payments or other optional
redemptions pursuant to the terms of such Securities, provided that such
Securities have not been previously so credited. Such Securities shall be
received by the Trustee, together with an Officers' Certificate with respect
thereto, not later than 15 days prior to the date on which the Trustee begins
the process of selecting Securities for redemption, and shall be credited for
such purpose by the Trustee at the price specified in such Securities for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly. If as a result of the delivery or
credit of Securities in lieu of cash payments pursuant to this Section 11.2, the
principal amount of Securities of such Series to be redeemed in order to exhaust
the aforesaid cash payment shall be less than $100,000, the Trustee need not
call Securities of such Series for redemption, except upon receipt of a Company
Order that such action be taken, and such cash payment shall be held by the
Trustee or a Paying Agent and applied to the next succeeding sinking fund
payment, provided, however, that the Trustee or such Paying Agent shall from
time to time upon receipt of a Company Order pay over and deliver to the Company
any cash payment so being held by the Trustee or such Paying Agent upon delivery
by the Company to the Trustee of Securities of that Series purchased by the
Company having an unpaid principal amount equal to the cash payment required to
be released to the Company.

         Section 11.3. Redemption of Securities for Sinking Fund.

                  Not less than 45 days (unless otherwise indicated in the Board
Resolution, supplemental indenture hereto or Officers' Certificate in respect of
a particular Series of Securities) prior to each sinking fund payment date for
any Series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that Series pursuant to the terms of that Series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting of
Securities of that Series pursuant to Section 11.2, and the optional amount, if
any, to be added in cash to the next ensuing mandatory sinking fund payment, and
the Company shall thereupon be obligated to pay the amount therein specified.
Not less than 30 days (unless otherwise indicated in the Board Resolution,
Officers' Certificate or supplemental indenture in respect of a particular
Series of Securities) before each such sinking fund payment date the Trustee
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner specified in Section 3.2 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the
manner provided in Section 3.3. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 3.4, 3.5 and 3.6.

43

<PAGE>   49

                  IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed as of the day and year first above written.

                               Chartered Semiconductor Manufacturing Ltd

                               By: /s/ CHIA SONG HWEE
                                   -------------------------------------------
                                   Name:  Chia Song Hwee
                                   Its: Senior Vice President, Chief Financial
                                   Officer and Chief
                                   Administrative Officer

                               Wells Fargo Bank Minnesota, National
                               Association

                               By: /s/ ROBERT REYNOLDS
                                  ---------------------------------------------
                                   Name:  Robert Reynolds
                                   Its: Vice President<PAGE>   1
                                                                     Exhibit 4.2

================================================================================

                    CHARTERED SEMICONDUCTOR MANUFACTURING LTD

                                       AND

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
                                     Trustee

                                  $575,000,000

                     2.50% Senior Convertible Notes due 2006

                          FIRST SUPPLEMENTAL INDENTURE

                            Dated as of April 2, 2001

                                       TO

                                    INDENTURE

                            Dated as of April 2, 2001

================================================================================
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                     PAGE
                                                                                     ----
<S>             <C>                                                                  <C>
ARTICLE ONE  DEFINITIONS
Section 1.1.    Relation to Base Indenture                                              1
Section 1.2.    Definitions.                                                            1
Section 1.3.    Rules of Construction.                                                  9
Section 1.4     Acts of Holders.                                                        9
Section 1.5.    Notices, etc., to Trustee and Company.                                 10
Section 1.6.    Notice to Holders; Waiver.                                             10

ARTICLE TWO  FORM AND TERMS OF THE CONVERTIBLE NOTES
Section 2.1.    Terms of the Convertible Notes.                                        11
Section 2.2.    Form and Dating.                                                       13
Section 2.3.    Payment of Interest; Interest Rights Preserved.                        14
Section 2.4.    Depository and Paying Agent for Convertible Notes.                     15
Section 2.5.    Calculations.                                                          15

ARTICLE THREE  ADDITIONAL REDEMPTION PROVISIONS
Section 3.1.    Redemption at Option of the Company.                                   15
Section 3.2.    Repurchase at Option of Holders.                                       17
Section 3.3.    Purchase of Convertible Notes.                                         20

ARTICLE FOUR  CONVERSION PROVISIONS
Section 4.1.    Conversion.                                                            20

ARTICLE FIVE  DEFAULTS AND REMEDIES WITH RESPECT TO THE
               CONVERTIBLE NOTES

ARTICLE SIX  COVENANTS
Section 6.1.    Consolidation, Merger, Conveyance, Transfer or Lease                   34
Section 6.2.    Negative Pledge.                                                       35
Section 6.3.    Payment of Principal, Interest and Additional Amounts.                 36
Section 6.4.    Maintenance of Office or Agency.                                       37

ARTICLE SEVEN  MISCELLANEOUS
Section 7.1.    Effect of Headings                                                     38
Section 7.2.    Successors and Assigns.                                                38
Section 7.3.    Separability Clause.                                                   38
Section 7.4.    Governing Law.                                                         38
Section 7.5     Satisfaction and Discharge; Defeasance.                                38
Section 7.6.    Repayment to Company.                                                  38
Section 7.7.    Place of Payment.                                                      39
Section 7.8.    Jurisdiction.                                                          39
</TABLE>

                                       i
<PAGE>   3
                                    EXHIBITS

Exhibit A  FORM OF CONVERTIBLE NOTE

-----------------------------------------------------------------------------

         Reconciliation and tie between Trust Indenture Act of 1939 and
                Supplemental Indenture, dated as of April 2, 2001

<TABLE>
<S>                                                                                   <C>
Section 316(c)                                                                        1.4
</TABLE>

----------
Note: This reconciliation and tie shall not, for any purpose, be deemed to be
      part of the Indenture.

                                       ii
<PAGE>   4
     THIS FIRST SUPPLEMENTAL INDENTURE, dated as of April 2, 2001 (the
"Supplemental Indenture"), is by and between CHARTERED SEMICONDUCTOR
MANUFACTURING LTD, a Singapore limited liability company (the "Company"), having
its principal office at 60 Woodlands Industrial Park D, Street 2, Singapore
738406 and WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, a U.S. national
banking association, as trustee (the "Trustee"), having its principal office at
Sixth Street and Marquette Avenue, Minneapolis, Minnesota, 55479, USA.

                                   WITNESSETH:

     WHEREAS, the Company and the Trustee executed and delivered an Indenture,
dated as of April 2, 2001 (the "Indenture"), to provide for the issuance by the
Company from time to time of Securities to be issued in one or more series as
provided in the Indenture;

     WHEREAS, the issuance and sale of up to $575,000,000 aggregate principal
amount of a series of the Company's Securities (the "Convertible Notes") have
been authorized by resolutions adopted by the Board of Directors of the Company
on February 26, 2001, with such terms as have been established pursuant to the
authority granted by such board resolutions;

     WHEREAS, the Company desires to issue and sell up to $575,000,000 aggregate
principal amount of the Convertible Notes on the date hereof;

     WHEREAS, the Company desires to enter into this Supplemental Indenture
pursuant to Section 9.1 of the Indenture to supplement the Indenture to
establish the form and terms of the Convertible Notes; and

     NOW, THEREFORE, for and in consideration of the premises stated herein and
the purchase of the Convertible Notes by the Holders thereof, the parties hereto
hereby enter into this Supplemental Indenture, for the equal and proportionate
benefit of all Holders of Convertible Notes, as follows:

                                   ARTICLE ONE

                                   DEFINITIONS

Section 1.1. Relation to Base Indenture.

     This Supplemental Indenture constitutes an integral part of the Indenture.
In the event of inconsistencies between the Indenture and this Supplemental
Indenture, the terms hereof shall govern.

Section 1.2. Definitions.

     All of the terms used in this Supplemental Indenture which are defined in
the Indenture shall have the meanings specified in the Indenture, unless
otherwise provided herein or unless the context otherwise requires, and for the
purposes of this Supplemental Indenture, the following terms have the meanings
set forth in this Section:

     "Accreted Value" means, with respect to a Convertible Note, as of any date
of determination, the principal amount of such Convertible Note together with
such premium that would provide to the Holder of such Convertible Note an annual
yield from April 2, 2001 to (but excluding) the date of determination, of 5.25%
per annum, computed on a semi-annual internal rate of return bond equivalent
basis, on the principal amount of such Convertible Note, taking into account all

                                       1
<PAGE>   5
interest paid on such Convertible Note and treating as having been paid when due
all interest accrued and unpaid on such Convertible Note to the date of
determination.

     "Additional Amounts" means any additional amounts which are required
hereby, under circumstances specified in the Indenture, to be paid by the
Company in respect of certain taxes imposed on Holders and which are owing to
such Holders.

     "Additional Convertible Notes" means additional Convertible Notes that are
issued under a supplemental indenture after the date that Convertible Notes are
first issued by the Company and authenticated by the Trustee under this
Supplemental Indenture, which will rank pari passu with the Convertible Notes
initially issued in all respects, and shall be consolidated and form a single
series with the Convertible Notes and shall have the same terms as to status,
redemption or otherwise as the Convertible Notes.

     "ADSs" means American Depositary Shares, each representing ten Ordinary
Shares, issued pursuant to the ADS Deposit Agreement.

     "ADS Deposit Agreement" means the deposit agreement, dated November 4,
1999, among the Company, Citibank, N.A., as the Depository and holders of ADSs
from time to time.

     "Adjustment Effective Date" means the date on which an adjustment to the
Conversion Price takes effect with respect to the Convertible Notes.

     "Agent Members" has the meaning specified in Section 2.2.2.

     "Attributable Indebtedness" means, when used in connection with a Sale and
Leaseback Transaction, at any date as of which the amount thereof is to be
determined, the product of: (i) the net proceeds from such Sale and Leaseback
Transaction multiplied by (ii) a fraction, the numerator of which is the number
of full years of the term of the lease relating to the Property involved in such
Sale and Leaseback Transaction (without regard to any options to renew or extend
the term) remaining at the date of the making of such computation, and the
denominator of which is the number of full years of the term of such lease
(without regard to any options to renew or extend the term) measured from the
first day of the term.

     "Average Market Price" as of a certain date means the arithmetic mean of
the daily closing prices quoted for the Ordinary Shares on the Singapore
Exchange for the ten consecutive Trading Days immediately prior to such date.

     "Capital Stock" of any Person means any and all shares, interests
(including partnership interests), participations or other equivalents (however
designated) of capital stock of such Person whether now outstanding or issued
after the date of this Supplemental Indenture, including, without limitation,
all common stock and preferred stock.

     "Capitalized Lease Obligation" means any obligation to pay rent or other
amounts under a lease of (or other agreement conveying the right to use) real or
personal property that is required to be classified and accounted for as a
capital lease or obligation in accordance with U.S. GAAP and, for the purposes
of this Supplemental Indenture, the amount of such obligation at any date shall
be the capitalized amount thereof at such date, determined in accordance with
U.S. GAAP.

     "CDP" means The Central Depository (Pte) Limited.

     "Change of Control" means any event where: (i) any "person" or "group" (as
such terms are used in Sections 13(d) and 14(d) of the Exchange Act) other than
ST and its Affiliates (as defined in the Indenture) is or becomes the
"beneficial owner" (as defined in Rules 13d-3 and 13d-5

                                       2
<PAGE>   6
under the Exchange Act) of shares representing more than 50% of the combined
voting power of the then outstanding securities entitled to vote generally in
elections of directors of the Company ("Voting Stock"), (ii) the Company
consolidates with or merges into any other person, or any other person merges
into the Company, and, in the case of any such transaction, the outstanding
Ordinary Shares of the Company are reclassified into or exchanged for any other
property or securities, unless the shareholders of the Company immediately
before such transaction own, directly or indirectly immediately following such
transaction, at least a majority of the combined voting power of the then
outstanding voting securities entitled to vote generally in elections of
directors of the corporation resulting from such transaction, (iii) the Company
and its Subsidiaries, taken as a whole, sell, assign, convey, transfer or lease
all or substantially all assets of the Company and its Subsidiaries, taken as a
whole, as applicable (other than to one or more wholly-owned Subsidiaries of the
Company) or (iv) any time the Continuing Directors do not constitute a majority
of the board of directors of the Company (or, if applicable, a successor
corporation to the Company).

     "Company" means the Person named as the "Company" in the first paragraph of
this Supplemental Indenture, until a successor Person shall have become such
pursuant to the applicable provisions of this Supplemental Indenture, and
thereafter "Company" shall mean such successor Person.

     "Consolidated Net Assets" means, as of any date of determination, the sum
of the amount that would appear on the Company's consolidated balance sheet as
the total assets (less accumulated depreciation and amortization, allowances for
doubtful receivables, other applicable provisions and other properly deductible
items), after giving effect to purchase accounting and after deducting therefrom
consolidated current liabilities and, to the extent otherwise included, the
amounts of:

          (i)   the excess of cost over fair market value of assets or
                businesses acquired;

          (ii)  any revaluation or other write-up in book value of assets
                subsequent to the last day of the fiscal quarter immediately
                preceding the issue date as a result of a change in the method
                of valuation in accordance with U.S. GAAP;

          (iii) unamortized debt discount and expenses and other unamortized
                deferred charges, goodwill, patents, trademarks, service marks,
                trade names, copyrights, licenses, organization or developmental
                expenses and other intangible items;

          (iv)  minority interests in consolidated Subsidiaries held by Persons
                other than the Company or its Subsidiaries;

          (v)   treasury stock; and

          (vi)  cash or securities set aside and held in a sinking or other
                analogous fund established for the purpose of redemption or
                other retirement of Capital Stock to the extent such obligation
                is not reflected in consolidated current liabilities.

     "Continuing Directors" means, as of any date of determination, any member
of the Board of Directors who (i) was a member of the Board of Directors on the
date hereof or (ii) was nominated for election or elected to the Board of
Directors with the approval of (a) a majority of the Continuing Directors who
were members of the Board of Directors at the time of such nomination or
election or (b) ST.

     "Conversion Agent" means any Person authorized by the Company to accept the
presentation of Convertible Notes by Holders for conversion.

                                       3
<PAGE>   7
     "Conversion Date" has the meaning specified in Section 13.2 of Article
Thirteen set forth in Section 4.1 hereof.

     "Conversion Period" has the meaning specified in Section 13.1 of Article
Thirteen set forth in Section 4.1 hereof.

     "Conversion Price" is initially S$6.5170 per Ordinary Share, subject to
adjustments from time to time as specified in Section 13.4 of Article Thirteen
set forth in Section 4.1 hereof.

     "Convertible Notes" has the meaning stated in the first recital of this
Supplemental Indenture and more particularly means any Convertible Notes
authenticated and delivered under this Supplemental Indenture.

     "corporation" includes corporations, associations, companies and business
trusts.

     "Defaulted Interest" has the meaning specified in Section 2.3.

     "Depository" means The Depository Trust Company.

     "Event of Default" has the meaning specified in Section 5.1.

     "Extraordinary Dividend" has the meaning specified in Section 13.4 of
Article Thirteen set forth in Section 4.1 hereof.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Fixed Exchange Rate" means the exchange rate of US$1.00 = S$1.7923.

     "Global Note" has the meaning specified in Section 2.2.1.

     "Holder" means a Person in whose name a Convertible Note is registered in
the Security Register.

     "Indebtedness" means, with respect to any Person on any date of
determination:

          (i)    the principal of and premium (if any) in respect of:

                 (A)  indebtedness of such Person for money borrowed;

                 (B)  indebtedness evidenced by notes, debentures, bonds or
                      other similar instruments for the payment of which such
                      Person is responsible or liable;

          (ii)   all Capitalized Lease Obligations of such Person and all
                 Attributable Indebtedness in respect of Sale and Leaseback
                 Transactions entered into by such Person;

          (iii)  all obligations of such Person created or arising under
                 conditional sale obligations or title retention agreements or
                 similar agreements related to the deferred purchase price of
                 Property (but excluding trade accounts payable arising in the
                 ordinary course of business and other short-term accounts
                 payable arising in connection with capital expenditures
                 incurred in the ordinary course of business);

          (iv)   all obligations of such Person for the reimbursement of any
                 obligor on any letter of credit or banker's acceptance (other
                 than obligations with respect to letters of credit securing
                 obligations (other than obligations described in (i), (ii) or
                 (iii) above)

                                       4
<PAGE>   8
                 entered into in the ordinary course of business of such Person
                 to the extent such letters of credit are not drawn upon or, if
                 and to the extent drawn upon, such drawing is reimbursed no
                 later than the third Business Day following receipt by such
                 Person of a demand for reimbursement following payment on the
                 letter of credit);

          (v)    the amount of all obligations of such Person with respect to
                 the repayment of any preferred stock (but excluding, in each
                 case, any accrued dividends);

          (vi)   all obligations of the type referred to in (i) through (v)
                 above of other Persons and all dividends of other Persons for
                 the payment of which, in either case, such Person is
                 responsible or liable, directly or indirectly, as obligor,
                 guarantor or otherwise, including by means of any guarantee;

          (vii)  all obligations of the type referred to in (i) through (vi)
                 above of other Persons secured by any lien on any Property of
                 such Person (whether or not such obligation is assumed by such
                 Person), the amount of such obligation being deemed to be the
                 lesser of the value of such property and the amount of the
                 obligation so secured; and

          (viii) to the extent not otherwise included in this definition,
                 obligations of such Person hedging any of the Indebtedness
                 obligations referred to above.

     The amount of Indebtedness of any Person at any date shall be the
outstanding balance at such date of all unconditional obligations as described
above and the maximum liability, upon the occurrence of the contingency giving
rise to the obligation, of any contingent obligations at such date.

     "Indenture" means the indenture, dated as of April 2, 2001, between the
Company and the Trustee, as originally executed and as it may from time to time
be supplemented or amended by one or more supplemental indentures entered into
pursuant to the applicable provisions thereof, including, for all proposes of
this instrument and any such supplemental indenture, the provisions of the Trust
Indenture Act that are deemed to be a part of and govern this instrument and any
such supplemental indenture, respectively.

     "Interest Payment Date" means the Stated Maturity of an installment of
interest on the Convertible Notes.

     "International Investment Security" means any bond, note, debenture,
debenture stock, loan stock, certificate or other instrument evidencing
Indebtedness (excluding, for the avoidance of any doubt, any loans from banks or
other financial institutions or lenders) with a maturity of greater than one
year and which (i) is, or is intended of being, listed, quoted or traded on any
stock exchange or in any securities market (including, without limitation, any
over-the-counter market) and (ii) either (A) is by its terms payable, or confers
a right to receive payment, in any currency other than Singapore dollars or (B)
is denominated in Singapore dollars and more than 50% of the aggregate principal
amount of the offering of such International Investment Security is initially
distributed outside Singapore by or with the consent of the Company.

     "Luxembourg Paying Agent" means Kredietbank SA Luxembourgeoise.

     "Material Subsidiary" means any Subsidiary of the Company whose
consolidated net revenues or Consolidated Net Assets as shown on its most recent
audited consolidated financial statements represent 10% or more of the Company's
consolidated net revenues or Consolidated Net Assets, as shown on the Company's
most recent audited consolidated financial statements.

                                       5
<PAGE>   9
     "Maturity", when used with respect to any Security, means the date on which
the principal of such Security or an installment of principal becomes due and
payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, notice of redemption, notice of option to elect
repayment or otherwise.

     "Nasdaq National Market" means the Nasdaq National Market System.

     "One-Year Average Closing Price" is the arithmetic average of the official
closing price per Ordinary Share quoted on the Singapore Exchange for each
Trading Day during the 365 consecutive day period ending on the record date set
for such dividend that may result in an adjustment.

     "Ordinary Shares" means the ordinary shares, par value S$0.26 per share, of
the Company as they exist on the date of this Supplemental Indenture and any
shares of any class or classes of Capital Stock of the Company resulting from
any reclassification or reclassifications thereof.

     "Outstanding", when used with respect to the Convertible Notes, means, as
of the date of determination, all Convertible Notes theretofore authenticated
and delivered under this Supplemental Indenture, except:

          (i)   Convertible Notes theretofore cancelled by the Trustee or
                delivered to the Trustee for cancellation, including those
                surrendered for payment, conversion, redemption or repayment;

          (ii)  Convertible Notes, or portions thereof, for whose payment or
                redemption or repayment at the option of the Holder money in the
                necessary amount has been theretofore deposited with the Trustee
                or any Paying Agent (other than the Company) in trust or set
                aside and segregated in trust by the Company (if the Company
                shall act as its own Paying Agent) for the Holders of such
                Convertible Notes; provided that, if such Convertible Notes are
                to be redeemed, notice of such redemption has been duly given
                pursuant to this Supplemental Indenture or provision therefor
                satisfactory to the Trustee has been made; and

          (iii) Convertible Notes which have been paid pursuant to Section 5.2
                or in exchange for or in lieu of which other Convertible Notes
                have been authenticated and delivered pursuant to this
                Supplemental Indenture, other than any such Convertible Notes in
                respect of which there shall have been presented to the Trustee
                proof satisfactory to it that such Convertible Notes are held by
                a bona fide purchaser in whose hands the Convertible Notes are
                valid obligations of the Company; provided, however, that in
                determining whether the Holders of the requisite principal
                amount of Convertible Notes Outstanding have given any request,
                demand, authorization, direction, notice, consent or waiver
                hereunder, and for the purpose of making the calculations
                required by TIA Section 313, Convertible Notes owned by the
                Company or any other obligor upon the Convertible Notes or any
                Affiliate of the Company or such other obligor shall be
                disregarded and deemed not to be Outstanding, except that, in
                determining whether the Trustee shall be protected in making
                such calculation or in relying upon any such request, demand,
                authorization, direction, notice, consent or waiver, only
                Convertible Notes which the Trustee knows to be so owned shall
                be so disregarded. Convertible Notes so owned which have been
                pledged in good faith may be regarded as Outstanding if the
                pledgee establishes to the satisfaction of the Trustee the
                pledgee's right so to act with respect to such Convertible Notes
                and that the pledgee is not the Company or any other obligor
                upon the Convertible Notes or any Affiliate of the Company or
                such other obligor.

                                       6
<PAGE>   10
     "Paying Agent" means any Person authorized by the Company to pay the
principal of or interest on any Convertible Notes on behalf of the Company.

     "Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

     "Post-Distribution Price" of shares or any similar equity interest on any
date means the closing per unit sale price (or, if no closing sale price is
reported, the average of the bid and ask prices or, if more than one in either
case, the average of the average bid and the average ask prices) on such date
for trading of such units on a "when issued" basis without due bills (or similar
concept) as reported in the composite transactions for the principal securities
exchange on which such share or equity interest is traded; provided that if on
any date such units have not traded on a "when issued" basis, the
Post-Distribution Price shall be the closing per unit sale price (or, if no
closing sale price is reported, the average of the bid and ask prices or, if
more than one in either case, the average of the average bid and the average ask
prices) on such date for trading of such units on a "regular way" basis without
due bills (or similar concept) as reported in the composite transactions for the
principal securities exchange on which such share or equity interest is traded.
In the absence of such quotation, the Company will determine the
Post-Distribution Price on the basis of such quotations which reflect the
post-distribution value of the shares or equity interests as is fair and
reasonable in the opinion of its Board of Directors.

     "Predecessor Security" of any particular Convertible Note means every
previous Convertible Note evidencing all or a portion of the same indebtedness
as that evidenced by such particular Convertible Note; and, for the purposes of
this definition, any Convertible Note authenticated and delivered under Section
2.8 of the Indenture in exchange for a mutilated security or in lieu of a lost,
destroyed or stolen Convertible Note shall be deemed to evidence the same
indebtedness as the mutilated, lost, destroyed or stolen Convertible Note.

     "Prevailing Exchange Rate" means, on any date of determination, the noon
buying rate in New York City for cable transfers in Singapore dollars, as
certified for customs purposes by the Federal Reserve Bank in New York on such
date.

     "Property" of any Person means all types of real, personal, tangible,
intangible or mixed property (including any related contractual rights) owned by
such Person whether or not included in the most recent consolidated balance
sheet of such Person under U.S. GAAP.

     "Redemption Date", when used with respect to any Convertible Note to be
redeemed, in whole or in part, means the date fixed for such redemption by or
pursuant to this Supplemental Indenture.

     "Redemption Price", when used with respect to any Convertible Note to be
redeemed, means the price at which it is to be redeemed pursuant to this
Supplemental Indenture.

     "Reference Dividend" means, at any time, the largest aggregate amount of
cash dividend(s) declared with respect to any previous fiscal year (or any
interim period of such fiscal year) on a per share basis.

     "Regular Record Date" for the interest payable on any Interest Payment Date
means the March 18 or September 17 (whether or not a Business Day), as the case
may be, immediately preceding such Interest Payment Date.

     "Registration Date" has the meaning specified in Section the form of Note
attached as Exhibit A hereto.

                                       7
<PAGE>   11
     "Repayment Date", when used with respect to any Security to be repaid at
the option of the Holder, means the date fixed for such repayment pursuant to
this Supplemental Indenture.

     "Repayment Event" means the occurrence of a Change of Control or a
Termination of Trading.

     "Repayment Price", when used with respect to any Convertible Note to be
repaid at the option of the Holder, means the price at which it is to be repaid
pursuant to this Supplemental Indenture.

     "Sale and Leaseback Transaction" means any arrangement with any Person
pursuant to which Property is sold or transferred by such Person and such
Property or substantially identical Property is, in a substantially
contemporaneous transaction, leased back from the purchaser or transferee
thereof by such Person or one of its Subsidiaries.

     "Security Register" means the register kept by the Registrar with respect
to the Convertible Notes pursuant to Section 2.4 of the Indenture.

     "Singapore Exchange" means the Singapore Exchange Securities Trading
Limited.

     "Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee as specified in Section 2.3.

     "ST" means Singapore Technologies Pte Ltd.

     "Stated Maturity", when used with respect to any Indebtedness or any
installment of principal thereof or interest thereon, means the date specified
in the instrument evidencing or governing such Indebtedness as the fixed date on
which the principal amount of such Indebtedness or such installment of principal
or interest is due and payable.

     "Supplemental Indenture" means this instrument as originally executed and
as it may from time to time be supplemented or amended by one or more
supplemental indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all proposes of this instrument and
any such supplemental indenture, the provisions of the Trust Indenture Act that
are deemed to be a part of and govern this instrument and any such supplemental
indenture, respectively.

     "Termination of Trading" means an event where the Ordinary Shares (or other
securities into which the Convertible Notes are then convertible) are no longer
listed for trading on the Singapore Exchange or the ADSs are no longer listed or
admitted to trade on the New York Stock Exchange, the American Stock Exchange or
Nasdaq National Market (or their respective successors).

     "Total Current Dividend" means any and all cash dividends declared by the
Company on the Ordinary Shares, prior to the deduction of any withholding tax
plus any corporate tax attributable to that dividend, in the period starting
from the beginning of the fiscal year in which the record date set for such
dividend that may result in an adjustment falls and ending on and including such
record date (including such dividend that may result in an adjustment), other
than any dividend or portion thereof which previously resulted in an adjustment
under Section 13.4(d) of Article Thirteen established under this Supplemental
Indenture.

     "Trading Day" means, with respect to a stock exchange, a day when such
stock exchange is open for business, provided, however, that if no transaction
price or closing bid and offered prices are reported by such exchange in respect
of the relevant security for one or more Trading Days, such day or days will be
disregarded in any relevant calculation relating to a period of consecutive
Trading Days.

                                       8
<PAGE>   12
     "Trustee" means the Person named as the "Trustee" in the first paragraph of
this Supplemental Indenture until a successor Trustee shall have become such
pursuant to the applicable provisions of this Supplemental Indenture, and
thereafter "Trustee" shall mean such successor Trustee.

     "U.S. GAAP" means generally accepted accounting principles in the United
States, consistently applied, that are in effect from time to time.

     "Voting Stock" means stock or share capital which ordinarily has voting
power for the election of directors, whether at all times or only so long as no
senior class of stock or share capital has such voting power by reason of any
contingency.

Section 1.3. Rules of Construction.

     (i)  A reference to "dollars", "$" or "US$" is to the legal currency in the
          United States of America.

     (ii) A reference to "S$" is to the legal currency in the Republic of
          Singapore.

Section 1.4. Acts of Holders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Supplemental Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Supplemental Indenture and conclusive in favor of the Trustee and the Company,
if made in the manner provided in this Section.

     (b) The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is by
a signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of authority.
The fact and date of the execution of any such instrument or writing, or the
authority of the Person executing the same, may also be proved in any other
manner that the Trustee deems sufficient.

     (c) The ownership, principal amount and serial numbers of Convertible Notes
held by any Person, and the date of holding the same, shall be proved by the
Security Register.

     (d) If the Company shall solicit from the Holders of Convertible Notes any
request, demand, authorization, direction, notice, consent, waiver or other Act,
the Company may, at its option, by or pursuant to a Board Resolution, fix in
advance a record date for the determination of Holders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other Act,
but the Company shall have no obligation to do so. Notwithstanding TIA Section
316(c), such record date shall be the record date specified in or pursuant to
such Board Resolution, which shall be a date not earlier than the date 30 days
prior to the first solicitation of Holders generally in connection therewith and
not later than the date such solicitation is completed. If such a record date is
fixed, such request, demand, authorization, direction, notice, consent, waiver
or other Act may be

                                       9
<PAGE>   13
given before or after such record date, but only the Holders of record at the
close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite proportion of
Convertible Notes Outstanding have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent, waiver or other Act,
and for that purpose the Convertible Notes Outstanding shall be computed as of
such record date; provided that no such authorization, agreement or consent by
the Holders on such record date shall be deemed effective unless it shall become
effective pursuant to the provisions of this Supplemental Indenture not later
than 180 days after the record date.

     (e) Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Convertible Note shall bind every future
Holder of the same Convertible Note and the Holder of every Convertible Note
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof in respect of anything done, omitted or suffered to be done by the
Trustee or the Company in reliance thereon, whether or not notation of such
action is made upon such Convertible Note.

Section 1.5. Notices, etc., to Trustee and Company.

     Any request, demand, authorization, direction, notice, consent, waiver or
act of Holders or other document provided or permitted by this Supplemental
Indenture to be made upon, given or furnished to, or filed with,

     (a) the Trustee by any Holder or by the Company shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing to or with
the Trustee at the address of its principal office specified in the first
paragraph of this Supplemental Indenture, or at any other addresses previously
furnished in writing to each Holder or the Company by the Trustee, or

     (b) the Company by the Trustee or by any Holder shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to the Company addressed to it
at the address of its principal office specified in the first paragraph of this
Supplement Indenture, or at any other address previously furnished in writing to
the Trustee by the Company.

     All notices delivered hereunder shall be in English and shall be deemed
effective when actually received.

Section 1.6. Notice to Holders; Waiver.

     Where this Supplemental Indenture provides for notice of any event to
Holders by the Company or the Trustee, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date
(if any), and not earlier than the earliest date (if any), prescribed for the
giving of such notice. In any case where notice to Holders is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed,
to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. Any notice mailed to a Holder in the manner herein
prescribed shall be conclusively deemed to have been received by such Holder,
whether or not such Holder actually receives such notice. Where this
Supplemental Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

                                       10
<PAGE>   14
     In case, by reason of the suspension of or irregularities in regular mail
service or by reason of any other cause, it shall be impracticable to mail
notice of any event to Holders when such notice is required to be given pursuant
to any provision of this Supplement Indenture, then any manner of giving such
notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice for every purpose hereunder.

     In addition, the Company shall publish any notices to Holders as necessary,
including in English in the Financial Times, and The Wall Street Journal and, so
long as the Convertible Notes are listed on the Luxembourg Stock Exchange and
the rules of the Luxembourg Stock Exchange so require, publishing notices to
Holders in a leading newspaper having general circulation in Luxembourg, which
is expected to be the Luxemburger Wort; provided that for so long as any
Convertible Notes are represented by Global Notes notices may be given by
delivery of the relevant notice to the Depository, including their Euroclear
System and Clearstream Banking participants, for communication by them to their
respective participants in substitution for publication in any such newspaper.

                                   ARTICLE TWO

                     FORM AND TERMS OF THE CONVERTIBLE NOTES

Section 2.1. Terms of the Convertible Notes.

     The Convertible Notes shall have the following terms, established pursuant
to Section 2.2. of the Indenture:

     2.1.1. Pursuant to Section 2.2.1. of the Indenture, the title of the
Convertible Notes to be issued as a series of Securities under the Indenture
shall be the "2.50% Senior Convertible Notes due 2006".

     2.1.2. Pursuant to Section 2.2.2. of the Indenture, the Convertible Notes
shall be issued at a price equal to 100% of the aggregate principal amount
thereof.

     2.1.3. Pursuant to Section 2.2.3. of the Indenture, the aggregate principal
amount of the Convertible Notes that may be authenticated and delivered under
this Supplemental Indenture shall be limited to US$575,000,000. In addition, the
Company shall be permitted to issue additional notes that are fully fungible
with the Convertible Notes including in respect of their principal amount,
interest rate, redemption dates and terms and conditions of redemption and
conversion without the consent of the Holders. In the event the Company does so
issue such Additional Convertible Notes, provided that the terms and conditions
of such Additional Convertible Notes so allow, the Company may consolidate all
such Additional Convertible Notes, for purposes of redemptions and conversions,
so that redemptions and conversions would be made without any distinction in
respect of the Convertible Notes and all Additional Convertible Notes
subsequently issued. In the event of such consolidation, the Holders and the
holders of such Additional Convertible Notes would be deemed to be, and treated
as though they were, members of a single class.

     2.1.4. Pursuant to Section 2.2.4. of the Indenture, 115.493% of the
principal amount of the Convertible Notes shall be payable on April 2, 2006.

     2.1.5. Pursuant to Section 2.2.5. of the Indenture, the Convertible Notes
shall bear interest at a rate equal to 2.50% per annum; interest on the
Convertible Notes shall accrue from April 2, 2001 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
until the principal hereof is paid or duly provided for; interest on the
Convertible Notes shall be payable semi-annually in arrears in cash on April 2,
and October 2 of each year to holders of

                                       11
<PAGE>   15
record on the March 18 or September 17 (whether or not a Business Day)
immediately preceding the applicable Interest Payment Date.

     Interest on the Convertible Notes shall be computed from and including the
prior Interest Payment Date (or, in the case of the first Interest Payment Date,
from and including April 2, 2001) to but excluding the next Interest Payment
Date on the basis of a 360-day year consisting of twelve 30-day months. In the
event that any principal of or premium, if any, or interest on the Convertible
Notes is not paid when due, whether at the stated maturity or otherwise, then
except to the extent permitted by law, such overdue principal, premium, if any
and interest shall bear interest until paid at the rate of interest set forth in
this Section 2.1.5., compounded semi-annually.

     2.1.6. Pursuant to Section 2.2.6. of the Indenture, the place or places
where the principal of and interest in the Convertible Notes shall be payable
shall be as set forth in the Convertible Notes, the form of which is attached
hereto as Exhibit A.

     2.1.7. Pursuant to Section 2.2.7. of the Indenture, the Convertible Notes
shall be subject to redemption at the option of the Company as set forth in
Section 3.1 of this Supplemental Indenture.

     2.1.8. Pursuant to Section 2.2.8. of the Indenture, the Company shall not
be obligated to redeem or purchase the Convertible Notes pursuant to any sinking
fund or at the option of a Holder thereof prior to maturity.

     2.1.9. Pursuant to Section 2.2.9. of the Indenture, the Company shall be
obligated to repurchase the Convertible Notes at the option of the Holders
thereof as set forth in Article Twelve established under Section 3.2 of this
Supplemental Indenture.

     2.1.10. Pursuant to Section 2.2.10. of the Indenture, the Convertible Notes
shall be convertible into Ordinary Shares or Ordinary Shares in the form of ADSs
at any time on or after May 2, 2001 and prior to the close of business on the
third Business Day preceding April 2, 2006 or the Redemption Date fixed for any
early redemption at the Conversion Price then in effect as set forth in Article
Thirteen established under Section 4.1 of this Supplemental Indenture.

     2.1.11. Pursuant to Section 2.2.12. of the Indenture, the Convertible Notes
shall be issued initially in the form of a Global Note in definitive, fully
registered form without interest coupons in substantially the form of Exhibit A
hereto, as more specifically described in Section 2.2 of this Supplemental
Indenture.

     2.1.12. Pursuant to Section 2.2.13. of the Indenture, the Accreted Value of
the Convertible Notes together with any accrued but unpaid interest thereon
shall be payable upon declaration of acceleration thereof pursuant to Section
6.2 of the Indenture as amended by this Supplemental Indenture.

     2.1.13. Pursuant to Section 2.2.14. of the Indenture, the currency of
denomination of the Convertible Notes shall be U.S. dollars.

     2.1.14. Pursuant to Section 2.2.15. of the Indenture, the currency in which
payment of the principal of and interest on the Convertible Notes shall be U.S.
dollars.

     2.1.15. Pursuant to Section 2.2.18. of the Indenture, the Convertible Notes
shall not be secured by any collateral, except as may be provided in Section 6.1
of this Supplemental Indenture. The Convertible Notes shall not be guaranteed by
any Person.

                                       12
<PAGE>   16
     2.1.16. Pursuant to Section 2.2.19 of the Indenture, the Events of Default
which apply to the Convertible Notes and the right of the Trustee and Holders of
Convertible Notes to declare the principal amount thereof due and payable
pursuant to Section 6.2 of the Indenture as amended by this Supplemental
Indenture are set forth in Article Five of this Supplemental Indenture.

     2.1.17. Pursuant to Section 2.2.20 of the Indenture, additions to or
changes in the covenants set forth in Articles IV or V of the Indenture which
apply to the Convertible Notes are set forth in Article Seven of this
Supplemental Indenture.

     2.1.18. Pursuant to Section 2.2.21 of the Indenture, the Convertible Notes
shall be unsecured, senior and unsubordinated obligations of the Company.

     2.1.19. Pursuant to Section 2.2.22 of the Indenture, the Company hereby
appoints the Depository, the Paying Agents, the Conversion Agents and the
Registrars as set forth in Section 2.4.

Section 2.2. Form and Dating.

     The Convertible Notes and the Trustee's certificate of authentication shall
be substantially in the form of Exhibit A attached hereto. The Convertible Notes
may have notations, legends or endorsements required by law, stock exchange rule
or usage. Each Convertible Note shall be dated the date of its authentication.
The Convertible Notes shall be in denominations of $1,000 and integral multiples
thereof.

     The terms and provisions contained in the Convertible Notes shall
constitute, and are hereby expressly made, a part of this Supplemental Indenture
and the Company and the Trustee, by their execution and delivery of this
Supplemental Indenture, expressly agree to such terms and provisions and to be
bound thereby.

     2.2.1. Global Notes. Convertible Notes initially shall be represented by
global notes which shall be deposited on behalf of the purchasers of the
Convertible Notes represented thereby with the Depository at its New York
office, and registered in the name of the Depository or a nominee of the
Depository, duly executed by the Company and authenticated by the Trustee as
hereinafter provided (the "Global Note"). The aggregate principal amount of the
Global Notes may from time to time be increased or decreased by adjustments made
on the records of the Trustee and the Depository or its nominee as hereinafter
provided.

     2.2.2. Book-Entry Provisions. This Section 2.2.2 shall apply only to the
Global Note deposited with or on behalf of the Depository.

     The Company shall execute and the Trustee shall, in accordance with this
Section 2.2.2., authenticate and deliver the Global Note that (i) shall be
registered in the name of the Depository or the nominee of the Depository and
(ii) shall be delivered by the Trustee to the Depository or pursuant to the
Depository's instructions or held by the Trustee.

     Members of, or participants in, the Depository ("Agent Members") shall have
no rights either under this Indenture with respect to any Global Note held on
their behalf by the Depository or under such Global Note, and the Depository may
be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the absolute owner of such Global Note for all purposes.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depository
or impair, as between the Depository and its Agent Members, the operation of
customary practices of such Depository governing the exercise of the rights of
an owner of a beneficial interest in the Global Note.

                                       13
<PAGE>   17
     2.2.3. Certificated Convertible Notes. Convertible Notes issued in
certificated form Pursuant to Section 2.14.2 of the Indenture shall be
substantially in the form of Exhibit A attached hereto (but without including
the text referred to in footnotes 1 and 2 thereto). Owners of beneficial
interests in the Global Note will not be entitled to receive physical delivery
of certificated Convertible Notes pursuant to Section 13.2 as set forth in
Section 4.1.

Section 2.3. Payment of Interest; Interest Rights Preserved.

     Interest on any Convertible Note which is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person
in whose name such Convertible Note (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest.

     Any interest on any Convertible Note which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date
by virtue of having been such Holder, and such overdue interest and (to the
extent lawful) interest on such overdue interest at the rate borne by the
Convertible Notes (such overdue interest and interest thereon herein
collectively called "Defaulted Interest") may be paid by the Company, at its
election in each case, as provided in clause (1) or (2) below:

          (1)  The Company may elect to make payment of any Defaulted Interest
               to the Persons in whose names the Convertible Notes (or their
               respective Predecessor Securities) are registered at the close of
               business on a Special Record Date for the payment of such
               Defaulted Interest, which shall be fixed in the following manner.
               The Company shall notify the Trustee in writing of the amount of
               Defaulted Interest proposed to be paid on each Convertible Note
               and the date of the proposed payment, and at the same time the
               Company shall deposit with the Trustee an amount of money equal
               to the aggregate amount proposed to be paid in respect of such
               Defaulted Interest or shall make arrangements satisfactory to the
               Trustee for such deposit prior to the date of the proposed
               payment, such money when deposited to be held in trust for the
               benefit of the Persons entitled to such Defaulted Interest as in
               this clause provided. Thereupon the Trustee shall fix a Special
               Record Date for the payment of such Defaulted Interest which
               shall be not more than 15 days and not less than 10 days prior to
               the date of the proposed payment and not less than 10 days after
               the receipt by the Trustee of the notice of the proposed payment.
               The Trustee shall promptly notify the Company of such Special
               Record Date and, in the name and at the expense of the Company,
               shall cause notice of the proposed payment of such Defaulted
               Interest and the Special Record Date therefor to be given in the
               manner provided for in Section 1.5, not less than 10 days prior
               to such Special Record Date. Notice of the proposed payment of
               such Defaulted Interest and the Special Record Date therefor
               having been so given, such Defaulted Interest shall be paid to
               the Persons in whose names the Convertible Notes (or their
               respective Predecessor Securities) are registered at the close of
               business on such Special Record Date and shall no longer be
               payable pursuant to the following clause (2).

          (2)  The Company may make payment of any Defaulted Interest in any
               other lawful manner not inconsistent with the requirements of any
               securities exchange on which the Convertible Notes may be listed,
               and upon such notice as may be required by such exchange, if,
               after notice given by the Company to the Trustee of the proposed
               payment pursuant to this clause, such manner of payment shall be
               deemed practicable by the Trustee.

     Subject to the foregoing provisions of this Section, each Convertible Note
delivered under this Supplemental Indenture upon registration of transfer of or
in exchange for or in lieu of any other Convertible Note shall carry the rights
to interest accrued and unpaid, and to accrue, which were carried by such other
Convertible Note.

                                       14
<PAGE>   18
Section 2.4. Depository and Paying Agent for Convertible Notes.

     The Company initially appoints The Depository Trust Company to act as
Depository with respect to the Global Note.

     The Company initially appoints the Trustee and the Luxembourg Paying Agent
to act as the Paying Agents, the Conversion Agents and the Registrars with
respect to the Global Note.

Section 2.5. Calculations.

     All calculations relating to redemption and conversion, including
adjustment of the Conversion Price, will be made to the nearest 0.01 of an
Ordinary Share or other property or the nearest cent.

                                  ARTICLE THREE

                        ADDITIONAL REDEMPTION PROVISIONS

Section 3.1. Redemption at Option of the Company.

     Redemption of Convertible Notes at the election of the Company, as
permitted or required by any provision of the Indenture or this Supplemental
Indenture, shall be made in accordance with the following provisions:

     3.1.1. General Option of the Company.

     The Convertible Notes are redeemable at the option of the Company, in whole
or in part, at any time on or after April 2, 2003, at a Redemption Price equal
to the Accreted Value, plus any accrued and unpaid interest to the Redemption
Date (subject to the right of Holders of record of the Convertible Notes on the
relevant Regular Record Date to receive interest due on an Interest Payment Date
that is on or prior to the Redemption Date); provided, however, that no such
redemption may be made unless the closing price per Ordinary Share on the
Singapore Exchange (translated into U.S. dollars at the Prevailing Exchange Rate
on such Trading Day) or the ADSs on the Nasdaq National Market for any 20
Trading Days in a 30 consecutive Trading Day period ending not more than five
days prior to the date on which notice of such redemption is given, is at least
125% of the Conversion Price (translated into U.S. dollars at the Fixed Exchange
Rate) or of the Conversion Price per ADS (translated into U.S. dollars at the
Fixed Exchange Rate and taking into account the current 10:1 Ordinary
Share-to-ADS ratio), in each case as adjusted through, and effective on, such
notice date. Notwithstanding the foregoing, the Company may redeem the
Convertible Notes in whole but not in part, at a Redemption Price equal to the
Accreted Value, plus accrued and unpaid interest to the Redemption Date if at
anytime the aggregate principal amount of the Convertible Notes Outstanding is
less than 5% of the aggregate principal amount of the Convertible Notes
originally issued hereunder.

     3.1.2. Redemption for Taxation Reasons.

     The Convertible Notes are redeemable at the option of the Company, in whole
but not in part, on any date at a Redemption Price equal to the Accreted Value,
plus any accrued and unpaid interest to the Redemption Date if the Company
determines that, as a result of any change in or amendment to the laws or any
regulations or rulings promulgated thereunder of Singapore or any official or
judicial authority thereof or therein having the power to tax, or any change in
the general application or official or judicial interpretation of such laws,
regulations or rulings, or any change in the general application or official or
judicial interpretation of, or any execution or amendment to, any treaty or
treaties affecting taxation to which Singapore is a party, which change,
execution or

                                       15
<PAGE>   19
amendment becomes effective on or after the original issue date of the
Convertible Notes, the Company has been or will be required to pay Additional
Amounts with respect to the Convertible Notes.

     3.1.3. Election to Redeem; Notice to Trustee; Opinion of Counsel.

     The election of the Company to redeem any Convertible Notes pursuant to
Section 3.1.1. or Section 3.1.2. shall be evidenced by a Board Resolution. In
case of any redemption at the election of the Company, the Company shall,
concurrently with the giving of notice to the Holders, notify the Trustee of
such Redemption Date. Prior to any redemption pursuant to Section 3.1.2. the
Company agrees to provide the Trustee with an Opinion of Counsel that the
conditions precedent to such redemption have occurred. Prior to any redemption
pursuant to Section 3.1.1, the Company agrees to provide the Trustee with an
Officer's Certificate setting forth the relevant closing prices or the amount of
Convertible Notes Outstanding and the amount originally issued and its
conclusion that the conditions precedent to such redemption have occurred.

     3.1.4. Notice of Redemption.

     Notice of redemption shall be given in the manner provided below not less
than 30 nor more than 60 days prior to the Redemption Date, to each Holder of
Convertible Notes to be redeemed.

     All notices of redemption shall set forth:

          (1)  the Redemption Date,

          (2)  the Redemption Price and the amount of accrued and unpaid
               interest to the Redemption Date payable as provided in Section
               3.1.6., if any,

          (3)  that on the Redemption Date, the Redemption Price (and accrued
               and unpaid interest, if any, to the Redemption Date) payable as
               provided in Section 3.1.6. will become due and payable upon each
               such Convertible Note to be redeemed, and that interest thereon
               will cease to accrue on and after said date,

          (4)  whether the redemption is pursuant to Section 3.1.1. or Section
               3.1.2. and a brief description of such section, and

          (5)  the place or places where such Convertible Notes are to be
               surrendered for payment of the Redemption Price and accrued and
               unpaid interest, if any.

     Notice of redemption of Convertible Notes to be redeemed at the election of
the Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company, in which case the Trustee
shall provide the Company with a notice stating the date on which such notice of
redemption was mailed to Holders and/or proof that such notice of redemption was
published.

     3.1.5. Deposit of Redemption Price.

     Prior to any Redemption Date, the Company shall deposit with the Trustee or
with a Paying Agent an amount of money sufficient to pay the Redemption Price
of, and accrued and unpaid interest on, all the Convertible Notes which are to
be redeemed on that date.

                                       16
<PAGE>   20
     3.1.6. Convertible Notes Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Convertible Notes
so to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified (together with accrued and unpaid interest,
if any, to the Redemption Date), and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued and
unpaid interest) such Convertible Notes shall cease to bear interest. Upon
surrender of any such Convertible Note for redemption in accordance with said
notice, such Convertible Note shall be paid by the Company at the Redemption
Price, together with accrued and unpaid interest, if any, to the Redemption
Date; provided, however, that installments of interest whose Stated Maturity is
on or prior to the Redemption Date shall be payable to the Holders of such
Convertible Notes, or one or more Predecessor Securities, registered as such at
the close of business on the relevant Record Dates according to their terms and
the provisions of Section 6.3.

     If any Convertible Note called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid, bear interest
from the Redemption Date at the rate borne by the Convertible Notes.

     3.1.7. Selection of Convertible Notes to be Redeemed.

     Section 3.2 of the Indenture hereby is amended and restated with respect to
the Convertible Notes as follows:

     If less than all the Convertible Notes are to be redeemed, the Trustee
shall select the Convertible Notes to be redeemed by a method that complies with
the requirements of the principal securities exchange, if any, on which the
Convertible Notes are listed, or, if the Convertible Notes are not so listed, on
a pro rata basis, by lot or by such other method as the Trustee considers fair
and appropriate. The Trustee shall make the selection not more than 60 days and
not less than 30 days before the redemption date from Convertible Notes
Outstanding not previously called for redemption. The Trustee may select for
redemption portions of the principal of Convertible Notes that have
denominations larger than $1,000. Convertible Notes and portions of them it
selects shall be in principal amounts of $1,000 or integral multiples of $1,000.
Provisions of this Supplemental Indenture that apply to Convertible Notes called
for redemption also apply to Convertible Notes that are called for partial
redemption. The Trustee shall notify the Company promptly of the Convertible
Notes or portions of Convertible Notes to be called for redemption.

     If any Convertible Note selected for partial redemption is converted by the
Holder in part after such selection, the partially converted portion of such
Convertible Note shall be deemed (so far as may be) to have been redeemed for
such purpose. Upon any redemption of less than all the Convertible Notes, the
Company and the Trustee may treat as Outstanding any Convertible Notes
surrendered for conversion during the period 15 days immediately preceding the
mailing of a notice of redemption and need not treat as Outstanding any new
Convertible Note authenticated and delivered during such period in exchange for
the unconverted portion of any Convertible Note converted in part during such
period.

Section 3.2. Repurchase at Option of Holders.

     The Convertible Notes shall contain the following provisions regarding
repurchase at the option of Holders:

                                       17
<PAGE>   21
                                 ARTICLE TWELVE

                         REPAYMENT AT OPTION OF HOLDERS

Section 12.1. Applicability of Article.

     Upon the occurrence of a Repayment Event, each Holder of the Convertible
Notes shall have the right to require repayment by the Company for all (or any
portion equal to US$1,000 or any integral multiple thereof) of such Holder's
Convertible Notes in cash at the Accreted Value, plus accrued and unpaid
interest to the Repayment Date (subject to the right of Holders of record of the
Convertible Notes on the relevant Regular Record Date to receive interest due on
an Interest Payment Date that is on or prior to the Repayment Date) in
accordance with provisions of this Article Twelve.

Section 12.2. Repayment of Convertible Notes.

     The Company covenants that prior to the Repayment Date it will deposit with
the Trustee or with a Paying Agent accrued and unpaid interest on, all the
Convertible Notes or portions thereof, as the case may be, to be repaid on such
Repayment Date.

Section 12.3. Exercise of Option.

     In order to be repaid at the option of the Holder, any Convertible Note so
providing for such repayment, with the "Notice to Elect Repayment" form thereon
duly completed by the Holder (or by the Holder's attorney duly authorized in
writing), must be received by the Company at its office or agency for such
purpose specifying the principal amount of the Convertible Note submitted for
repayment, not later than the date specified by the Company in its notice of the
Repayment Event in accordance with Section 12.6. If less than the entire
principal amount of such Convertible Note is to be repaid, the principal amount
of such Convertible Note to be repaid, in increments of US$1,000, and the
denomination or denominations of the Convertible Note or Convertible Notes to be
issued to the Holder for the portion of the principal amount of such Convertible
Note surrendered that is not to be repaid, must be specified. The principal
amount of any Convertible Note may not be repaid in part if, following such
repayment, the unpaid principal amount of such Convertible Note would be less
than US$1,000. The exercise of the repayment option by the Holder of any
Convertible Note shall be irrevocable unless waived by the Company.

Section 12.4. When Convertible Notes Presented for Repayment Become Due and
Payable.

     Any Convertible Notes surrendered for repayment as provided in this Article
shall become due and payable and shall be paid by the Company on the Repayment
Date therein specified, and on and after such Repayment Date (unless the Company
shall default in the payment of such Convertible Notes on such Repayment Date)
such Convertible Notes shall cease to bear interest. Upon surrender of any such
Convertible Note for repayment in accordance with such provisions the Repayment
Price of such Convertible Note to be repaid shall be paid by the Company,
together with accrued interest, if any, to the Repayment Date; provided,
however, that installments of interest whose Stated Maturity is on or prior to
the Repayment Date shall be payable to the Holders of such

                                       18
<PAGE>   22
Convertible Notes, or one or more Predecessor Securities, registered as such at
the close of business on the relevant Record Dates according to their terms and
the provisions of Section 2.3.

     If the Repayment Price of any Convertible Note surrendered for repayment
shall not be so paid upon surrender thereof, such Repayment Price (together with
interest, if any, thereon accrued to such Repayment Date) shall, until paid,
bear interest from the Repayment Date at the rate of interest borne by the
Convertible Notes.

Section 12.5. Convertible Notes Repaid in Part.

     Subject to Section 2.2.3. in the case of Global Notes, upon surrender of
any Convertible Note which is to be repaid in part only, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Convertible Note, without service charge and at the expense of the Company, a
new Convertible Note or Convertible Notes of the same series, of any authorized
denomination specified by the Holder, in an aggregate principal amount equal to
and in exchange for the portion of the principal of such Convertible Note so
surrendered which is not to be repaid.

Section 12.6. Notice of Repayment Event.

     Notice of a Repayment Event shall be given in the manner provided for in
Section 1.5. as soon as practicable, but in no event later than five (5)
Business Days after the Company becomes aware of the occurrence of such event,
to the Trustee and each Holder of Convertible Notes.

     All notices of a Repayment Event shall identify the nature of such
Repayment Event and its date of occurrence and state:

          (1)  the Repayment Date, which shall be the date that is 45 days from
               the notice day (or, if not a Business Day, the next succeeding
               Business Day thereafter), and the latest date by which the
               "Notice to Elect Repayment" must be received, which shall be the
               date that is 10 days prior to the Repayment Date (or, if not a
               Business Day, the next succeeding Business Day thereafter);

          (2)  the Repayment Price and the amount of accrued and unpaid interest
               to the Repayment Date payable as provided in Section 12.4, if
               any;

          (3)  that on the Repayment Date, the Repayment Price (and accrued and
               unpaid interest, if any, to the Repayment Date payable as
               provided in Section 12.4) will become due and payable upon each
               such Convertible Note in relation to which a valid "Notice to
               Elect Repayment" has been received by the Company, and that
               interest thereon will cease to accrue on and after said date with
               respect to such Convertible Note; and

          (4)  the place or places where such Convertible Notes are to be
               surrendered for payment of the Repayment Price and accrued and
               unpaid interest, if any.

                                       19
<PAGE>   23
               Notice of any Repayment Event shall be given by the Company or,
               at the Company's request, by the Trustee in the name and at the
               expense of the Company, in which case the Trustee shall provide
               the Company with a notice stating the date on which such notice
               was mailed to Holders and/or proof that such notice was
               published, in each case in accordance with Section 1.5.

Section 3.3 Purchase of Convertible Notes.

     The Company or any Subsidiary of the Company may at any time and from time
to time purchase Convertible Notes at any price in the open market or otherwise.
Any Convertible Note so purchased may, to the extent permitted by applicable law
and subject to any other contractual obligations of the Company, be held,
re-issued, resold or surrendered to the Trustee for cancellation. In addition,
the Company or any Subsidiary of the Company shall not be entitled to convert
any such Convertible Note purchased by them.

                                  ARTICLE FOUR

                              CONVERSION PROVISIONS

Section 4.1. Conversion.

     The Convertible Notes shall contain the following provisions regarding
conversion:

                                ARTICLE THIRTEEN

                            CONVERSION OF SECURITIES

Section 13.1. Conversion Right.

     Subject to the further provisions of this Article Thirteen, a Holder of a
Convertible Note may convert such Convertible Note (or a portion thereof equal
to US$1,000 or any integral multiple thereof) into Ordinary Shares of the
Company at any time after May 2, 2001 and before the close of business on the
third Business Day preceding Maturity or the Redemption Date fixed for any early
redemption at the Conversion Price then in effect; provided, however, that, if
such Convertible Note is called for redemption pursuant to Section 3.1 of this
Supplemental Indenture, such conversion right shall terminate at the close of
business on the third Business Day preceding the Redemption Date for such
Convertible Note (unless the Company shall default in making the redemption
payment when due, in which case the conversion right shall terminate at the
close of business on the date such default is cured and such Convertible Note is
redeemed) (such period during which the Convertible Notes are convertible, the
"Conversion Period"). The number of Ordinary Shares issuable upon conversion of
a Convertible Note (or a portion thereof equal to US$1,000 or any integral
multiple thereof) shall be determined by dividing the aggregate principal amount
(translated into Singapore dollars at the Fixed Exchange Rate) of the
Convertible Note or portion thereof surrendered for conversion by the Conversion
Price per Ordinary Share in effect on the Conversion Date. The Ordinary Shares
issuable upon conversion will be duly authorized, validly issued, fully paid and
nonassessable and will rank equally with all other Ordinary Shares.

     A Holder may elect to receive Ordinary Shares upon conversion in the form
of ADSs. In such event, the Company shall, on behalf of such Holder, as soon as
practicable, deliver to and deposit with the Depository or its custodian, in
accordance with the applicable terms and conditions of the ADS Deposit
Agreement,

                                       20
<PAGE>   24
such number of Ordinary Shares such Holder would have received upon conversion
had such Holder not elected to receive such Ordinary Shares in the form of ADSs.
Such Ordinary Shares will be registered in the name of the Depository or its
nominee. Subject to compliance with the terms of the ADS Deposit Agreement,
including payment of the fees and expenses of the ADS depository by such Holder,
the ADS depository will issue such number of ADSs representing the deposited
Ordinary Shares to such Holder based on the applicable share-to-ADS ratio then
in effect.

     A Convertible Note may not be converted if a Holder has delivered a "Notice
to Elect Repayment" form in respect of such Convertible Note pursuant to Article
Twelve exercising the option of such Holder to require repayment by the Company
for such Convertible Note.

     Upon conversion, with effect from the Registration Date (as defined in
Section 13.2), the person designated in the conversion notice will be registered
as the holder of record of the applicable number of Ordinary Shares, but
beginning on the Conversion Date (as defined in Section 13.2) such converting
Holder shall cease to have any right as a Holder with respect to the Convertible
Notes surrendered for conversion.

Section 13.2. Conversion Procedure.

     To convert a Convertible Note, a Holder must (a) complete and manually sign
a conversion notice in substantially the form included in the form of
Convertible Notes set forth in Exhibit A hereto and deliver such notice to the
Conversion Agent at its own expense, (b) surrender the Convertible Note to the
Conversion Agent duly endorsed or assigned to the Company or in blank, (c)
furnish appropriate endorsements and transfer documents (if any) required by the
Registrar or the Conversion Agent, and (d) pay any required transfer or similar
tax and make any other required payment. The date on which the Holder satisfies
all of those requirements is the "Conversion Date."

     Immediately following deposit of a Convertible Note and conversion notice
and payment by the converting Holder of any required amount in accordance with
Section 13.2, the Conversion Agent shall (i) verify that the conversion notice
has been duly completed in accordance with its terms and purports to have been
signed by or on behalf of the Holder of such Convertible Note named therein and
(ii) set out in the conversion notice (A) the deposit date and the Conversion
Date in respect of the deposited Convertible Note, (B) the Conversion Price on
Conversion Date and (C) the number of Ordinary Shares or ADSs issuable upon
conversion of such deposited Convertible Note. The Conversion Agent shall reject
such deposited Convertible Note if the conversion notice in respect of which has
not been duly completed in accordance with its terms or does not purport to have
been signed by or on behalf of the Holder of such Convertible Note named
therein. The Conversion Agent shall send by facsimile to the Company a copy of
the conversion notice as soon as practicable, but in any event no later than two
Business Days, following such verification, and shall send by post, to the
Company the original conversion notice as soon as practicable following any such
request by the Company in writing. On deposit of a Convertible Note and a
conversion notice (and payment by a converting Holder of any required amount) in
accordance with Section 13.3, the Convertible Note and the Conversion Notice so
deposited and any

                                       21
<PAGE>   25
relevant amounts shall be deemed to be held by the Conversion Agent as the agent
of the Company.

     No Holder will be entitled to receive physical share certificates in
respect of the Ordinary Shares arising from the conversion of the Convertible
Notes. Delivery of the Ordinary Shares shall be made by crediting such Ordinary
Shares to a Holder's securities account or the securities account of a Holder's
depository agent with CDP. The Company shall allot and issue the Ordinary Shares
arising from the conversion of the Convertible Notes in accordance with
instructions as set out in the conversion notice and shall deliver to CDP the
share certificate(s) relating to such Ordinary Shares in the name of CDP for the
credit of the Holder's securities account or the securities account of Holder's
depository agent securities account as specified in the Conversion Notice as
soon as practicable, and in any event not later than 14 days, after the
Conversion Date (or such longer period as may be required to comply with any
applicable fiscal or other laws or regulations). The Company will register the
Person or Persons designated for the purpose in the Conversion Notice as
holder(s) of the relevant number of Ordinary Shares in its share register. The
Person or Persons specified for that purpose will become the holder of record of
the number of Ordinary Shares issuable upon conversion with effect from the date
he is or they are registered as such in the Company's share register (the
"Registration Date").

     The Ordinary Shares issued upon conversion of the Convertible Notes will in
all respects be fully paid and nonassessable and rank equally with all the
Ordinary Shares in issue on the relevant Registration Date. A holder of Ordinary
Shares issued on conversion of Convertible Notes shall not be entitled to any
rights of a shareholder the record date for which precedes the relevant
Registration Date.

     If the record date for the payment of any dividend or other distribution in
respect of the Ordinary Shares is on or after the Conversion Date in respect of
any Convertible Notes converted, but before the Registration Date, the Company
shall pay to the converting Holder an amount equal to any such dividend or other
distribution to which he would have been entitled had he on that record date
been such a shareholder of record of such number of Ordinary Shares issued upon
conversion (disregarding any retroactive adjustment of the Conversion Price
pursuant to the fourth paragraph of Section 13.5), and will make such payment at
the same time as it makes payment of the dividend or other distribution, or as
soon as practicable thereafter, but, in any event, not later than seven days
thereafter.

     No payment or adjustment will be made for accrued and unpaid interest on
dividends on the Ordinary Shares on a Convertible Note delivered for conversion.
The delivery to a Holder of the fixed number of Ordinary Shares or ADSs into
which the Convertible Note is convertible will be deemed to satisfy the
Company's obligation to pay the principal amount and any accrued and unpaid
premium and interest attributable to the period from the Interest Payment Date
immediately preceding the Conversion Date to the Conversion Date.

     If any Holder surrenders a Convertible Note for conversion after the close
of business on the Regular Record Date relating to the Interest Payment Date but
before the opening of business on the related Interest

                                       22
<PAGE>   26
Payment Date, then, notwithstanding such conversion, the interest payable on
such Interest Payment Date shall be paid to the Holder of such Convertible Note
on such Regular Record Date. In such event, unless such Convertible Note has
been called for redemption on a Redemption Date prior to such Interest Payment
Date, such Convertible Note, when surrendered for conversion, must be
accompanied by delivery of a check or draft payable to a Person designated by
the Company in an amount equal to the interest payable on such Interest Payment
Date on the portion so converted. If such payment does not accompany such
Convertible Note, the Convertible Note shall not be converted. If the Company
defaults in the payment of interest payable on the Interest Payment Date, such
funds shall be repaid to the Holder.

     Fractions of Ordinary Shares will not be issued on conversion and will not
be deposited with the Depository, and no cash adjustments will be made in
respect of any such fraction of Ordinary Shares. Under the ADS Deposit
Agreement, the Depository will not issue fractions of ADSs. To the extent the
Depository does not accept a certain number of Ordinary Shares for deposit
pursuant to the ADS Deposit Agreement, the Conversion Agent will sell the
Ordinary Shares representing such fractional ADSs and will distribute the net
proceeds of the sale to the Holder.

     If a Holder converts more than one Convertible Note at the same time, the
number of Ordinary Shares or ADSs issuable upon the conversion shall be based on
the aggregate principal amount of Convertible Notes converted. Upon surrender of
a Convertible Note that is converted in part, the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder, a new Convertible Note
equal in principal amount to the unconverted portion of the Convertible Note
surrendered.

     A conversion notice once given will be irrevocable and may not be withdrawn
without the prior written consent of the Company. The Company or the Conversion
Agent on its behalf may reject any incomplete or incorrect conversion notice.
All costs and expenses incurred by an incomplete or incorrect conversion notice
will be for the account of the relevant Holder.

Section 13.3. Taxes and Expenses on Conversion.

     As conditions precedent to conversion, the Holder must pay to the
Conversion Agent any taxes and capital, stamp, issue and registration duties
arising on conversion, other than any taxes or capital or stamp duties payable
in Singapore in respect of the allotment, issuance of the Ordinary Shares and
listing of the Ordinary Shares upon conversion. In addition, the Holder will be
required to pay any tax or duty relating to any disposal or any deemed disposal
relating to conversion and transfer involved in the issue or delivery of the
Ordinary Shares upon conversion. The Company will pay all other expenses arising
on the issue, allotment and delivery of the Ordinary Shares issuable upon
conversion. If a Holder elects to receive Ordinary Shares upon conversion in the
form of ADSs, the Holder shall pay all amounts pursuant to this Section 13.3 in
addition to the fees and expenses of the Depository pursuant to the ADS Deposit
Agreement.

                                       23
<PAGE>   27
Section 13.4. Adjustment of Conversion Price.

     The Conversion Price per Ordinary Share shall be adjusted from time to time
by the Company as follows:

     In each case, the adjusted Conversion Price is determined by multiplying
the Conversion Price before adjustment, denoted as "P", by an applicable
adjustment factor. The formulae for determining the adjustment factors are set
forth in the following subsections. In each case, the Conversion Price will be
adjusted with effect from the end of business in Singapore on the applicable
Adjustment Effective Date.

     (a) If the Company:

          (i)   pays a dividend or makes a distribution on any class of its
                Capital Stock in the form of Ordinary Shares other than a cash
                dividend or distribution that permits the recipient to elect to
                receive Ordinary Shares instead of cash (all reference to
                "dividend" in this Section 13.4 (a)(i) being a dividend other
                than an Extraordinary Dividend defined below);

          (ii)  splits or reclassifies the outstanding Ordinary Shares into a
                greater number of Ordinary Shares; or

          (iii) consolidates or reclassifies the outstanding Ordinary Shares
                into a lesser number of Ordinary Shares,

the Conversion Price will be adjusted as follows:

                                                    X
               Adjusted Conversion Price = P   x   ---
                                                    Y

where:

     "X" means the number of Ordinary Shares outstanding immediately prior to
the effectiveness of the relevant event giving rise to the adjustment; and

     "Y" means the number of Ordinary Shares outstanding immediately after
effectiveness of the relevant event giving rise to the adjustment.

     The Adjustment Effective Date, in the case of (a)(i) above, shall be the
record date set for the relevant dividend or distribution giving rise to the
adjustment. The Adjustment Effective Date, in the case of (a)(ii) and (a)(iii)
above, shall be the date on which the relevant split, consolidation or
reclassification giving rise to the adjustment becomes effective.

     (b) If (i) the Company issues or distributes Ordinary Shares, or any of its
Subsidiaries issues or distributes any securities or rights which are
convertible into or exchangeable for Ordinary Shares, or issues or distributes
any warrants or rights to purchase or subscribe for Ordinary Shares, in each
case, to all or substantially all holders of

                                       24
<PAGE>   28
Ordinary Shares; and (ii) the applicable issuance, distribution, conversion,
exchange, purchase or subscription price per Ordinary Share, after taking into
account any per share consideration received by the Company in respect of such
issuance or distribution, is below 95% of the Average Market Price as of the
date of announcement of details concerning such applicable issuance,
distribution, conversion, exchange, purchase or subscription price; provided,
however, that this Section 13.4(b) shall not apply to issuances or distributions
made pursuant to Section 13.4(a).

the Conversion Price will be adjusted as follows:

                                                    (S + f)
               Adjusted Conversion Price = P  x   -----------
                                                    (S + a)

where:

     "S" means the number of Ordinary Shares outstanding at the close of
business on the date of announcement of details concerning such applicable
issuance, distribution, conversion, exchange, purchase or subscription price;

     "f" means the number of additional Ordinary Shares which the aggregate
applicable issuance, distribution, conversion, exchange, purchase or
subscription price, reduced by any aggregate consideration received by the
Company in respect of such issuance or distribution, would purchase at the
Average Market Price as of such date of announcement; and

     "a" means the number of additional Ordinary Shares which are issued or
distributed or are initially issuable or distributable under such issuance or
distribution or under the terms of the securities or rights issued or
distributed in such issuance or distribution.

     The Adjustment Effective Date for an adjustment pursuant to this subsection
(b) shall be the record date the Company sets for such issuance or distribution.

     In case of any adjustment as a result of issuance of Ordinary Shares by way
of a rights offering to all or substantially all holders of Ordinary Shares, the
Company may elect to defer the effectiveness of that adjustment until the
subscription period applicable to such rights offering has expired. In that
case, the Conversion Price shall be adjusted using elements "f" and "a" in the
above formula that are calculated on the basis of the actual number of the
Ordinary Shares issued and aggregate purchase price actually paid in the rights
offering. The adjustment shall take effect retroactively from the record date
the Company sets for such rights offering.

     (c) If the Company issues or distributes, for less than 95% of their fair
market value, to all or substantially all holders of Ordinary Shares, any

                                       25
<PAGE>   29
          (i)   securities other than as described in (a) or (b) above or (e)
                below,

          (ii)  assets, other than cash dividends addressed in (d) below or
                other cash dividends in kind, in each case declared and paid in
                the ordinary course (as described below), but, for the avoidance
                of doubt, including any dividend or portion of such dividend
                which constitutes a redemption of share capital as part of a
                reduction in par value of the Ordinary Shares, or

          (iii) rights to acquire those securities or assets described in
                subsection (i) and (ii) above,

the Conversion Price will be adjusted as follows:

                                                  (M - d)
               Adjusted Conversion Price = P x   ----------
                                                     M

where:

     "M" means the Average Market Price per Ordinary Share as of the date of
announcement of terms of such issuance or distribution; and

     "d" means the fair market value of the portion of the securities, assets or
rights to acquire such securities, assets or rights per Ordinary Share, less any
per share consideration received by the Company in respect of such portion. The
fair market value will be as determined by the Board of Directors of the
Company, which determination will be conclusive and calculated on the last
Trading Day preceding such date of announcement.

     For purposes of this paragraph (c), dividends "in the ordinary course"
shall mean, with respect to any fiscal year, the declaration and payment by the
Company of no more than (x) an interim dividend with respect to its interim
financial results for such fiscal year and (y) a final dividend with respect to
its full year financial results for such fiscal year.

     The Adjustment Effective Date, in the case of this subsection (c), shall be
the record date set for the relevant dividend or distribution giving rise to the
adjustment.

     (d) If the Company issues or distributes an Extraordinary Dividend in the
form of cash (as described below), the Conversion Price will be adjusted as
follows:

                                                  (M - e)
               Adjusted Conversion Price = P x  -----------
                                                     M

where:

     "M" has the same meaning as in subsection (c) above; and

                                       26
<PAGE>   30
     "e" means the amount of Extraordinary Dividend payable per Ordinary Share.

     For purposes of this subsection (d), with respect of a dividend on a
certain date, an Extraordinary Dividend occurs if the Total Current Dividend as
of such date equals or exceeds on a per share basis:

          (i) if the Company has never declared or paid any cash dividend: 2% of
     the One-Year Average Closing Price of the Ordinary Shares; or

          (ii) if the Company has declared and paid at least one cash dividend:
     the lower of (A) twice the Reference Dividend and (B) the Reference
     Dividend plus 1% of the One-Year Average Closing Price of the Ordinary
     Shares.

     The Extraordinary Dividend shall be, in the case of (i) above, the amount
by which the Total Current Dividend exceeds 2% of the One-Year Average Closing
Price, and in the case of (ii) above, the amount by which the Total Current
Dividend exceeds the Reference Dividend.

     The Adjustment Effective Date, in the case of this subsection (d), shall be
the record date set for the relevant dividend or distribution giving rise to the
adjustment.

     (e) If the Company pays a dividend or makes a distribution to all or
substantially all holders of its Ordinary Shares consisting of shares of any
class or series, or similar equity interests, of or relating to any of its
Subsidiaries or other business units, the Conversion Price will be adjusted as
follows:

                                                     (D)
               Adjusted Conversion Price = P x   ------------
                                                   (D + v)

where:

     "D" means the arithmetic mean of the daily Post-Distribution Prices of the
Ordinary Shares for the 10 Trading Days commencing on and including the fifth
trading day after the date on which "ex-dividend trading" commences for such
dividend or distribution on the Singapore Exchange or such other principal
exchange or market of which the Ordinary Shares are then listed or quoted (the
"Ex-Dividend Date").

     "v" means the fair market value of portion of the securities distributed as
is attributable to one Ordinary Share, less any consideration received by the
Company in respect of such portion.

     For purposes of this subsection (e):

     The Adjustment Effective Date, in the case of this subsection (e), shall be
the record date set for the relevant dividend or distribution giving rise to the
adjustment.

                                       27
<PAGE>   31
     (f)  If the Company determines after consultation with the Trustee that any
          other adjustment should be made to the Conversion Price, the Company
          will make such adjustment which is fair and reasonable in the opinion
          of its Board of Directors.

     For purposes of subsection (a) to (f) above, as applicable:

Section 13.5. General Provisions Relating to Adjustment.

     The Company may not reduce the Conversion Price from time to time so that
on conversion, Ordinary Shares would be issued at a discount to their par value.
Except in the case of a consolidation or reclassification of Ordinary Shares
pursuant to Section 13.4(a)(iii), the Conversion Price will not be increased as
a result of any adjustment.

     In case of an adjustment that becomes effective on the record date of an
issuance or distribution giving rise to the adjustment, if the actual amount of
adjustment cannot be determined on such record date because certain terms of
issuance or distribution have not been determined, the Company may elect to
defer the effectiveness of such adjustment until it can be determined and such
adjustment will take effect retroactively from the record date set for such
issuance or distribution. In such case, the Company shall issue additional
Ordinary Shares, as a result of such adjustment, to the Holders who surrendered
for conversion between such record date and the date on which such adjustment is
determinable.

     If any doubt arises as to the appropriate adjustment to the Conversion
Ratio, a certificate of the Company's auditors at the time will be conclusive
and binding on all concerned except in the case of manifest error.

     No adjustment will be made to the Conversion Price where the adjustment,
rounded to the nearest cent as provided below, if applicable, would be less than
one percent of the Conversion Price then in effect. On any adjustment, the
resulting Conversion Price will be rounded to the nearest cent (or the smaller
of the nearest cent in the case of two equally near cents). Any adjustment not
required to be made and any amount by which the Conversion Price will be rounded
will be carried forward and taken into account in any subsequent adjustment.

     No adjustment will be made to the Conversion Price where Ordinary Shares or
other securities, options or rights to subscribe for or purchase Ordinary Shares
or other securities are issued pursuant to any stock option or purchase
programs, plans or similar arrangements approved by the Board of Directors or
the shareholders of the Company.

     If a Conversion Date falls prior to the Adjustment Effective Date of an
adjustment of the Conversion Price in circumstances where the issuance of
Ordinary Shares in respect of the exercise of relevant conversion right falls on
or after such Adjustment Effective Date, the Company shall issue to the relevant
Holder the additional number of Ordinary Shares to which that Holder would have
been entitled had the relevant Conversion Date fallen immediately following the
Adjustment Effective Date.

                                       28
<PAGE>   32
     Whenever the Company plans to take action that will result in the
adjustment of the Conversion Price under Section 13.4 or the Conversion Price
has been adjusted, the Company shall promptly notify Holders in a manner
prescribed by Section 1.5. and file with the Trustee an Officer's Certificate
briefly stating the facts requiring the adjustment and the manner of computing
it. For as long as the Convertible Notes are listed on the Luxembourg Stock
Exchange, and the rules of such stock exchange so require, the Company shall
inform Kredietbank SA Luxembourgeoise in its capacity as the Company's listing
agent of any adjustment of the Conversion Price.

     The Trustee has no duty to determine when an adjustment under this Article
Thirteen should be made, how it should be made or what it should be. The Trustee
has no duty to determine whether a supplemental indenture need be entered into
or whether any provisions of any supplemental indenture are correct. The Trustee
shall not be accountable for and makes no representation as to the validity or
value of any securities or assets issued upon conversion of the Convertible
Notes. The Trustee shall not be responsible for the Company's failure to comply
with this Article Thirteen. Each Conversion Agent (other than the Company or an
Affiliate of the Company) shall have the same protection under this Section 13.5
as the Trustee.

     The Company may, from time to time to the extent permitted by applicable
law, reduce the Conversion Price of the Convertible Notes, at the sole
discretion of the Board of Directors, by any amount for any period of at least
20 days, in which case the Company shall give at least 15 days' notice of such
decrease. The Company may, at its option, make such reductions in the Conversion
Price, in addition to those set forth above, as the Board of Directors deems
advisable to avoid or diminish any income tax to holders of Ordinary Shares
resulting from any dividend or distribution of Ordinary Shares (or rights to
acquire Ordinary Shares) or from any event treated as such for income tax
purposes.

Section 13.6. Covenants Relating to Conversion Rights.

     The Company shall, prior to issuance of any Convertible Notes hereunder,
and from time to time as it may be necessary, reserve, out of its authorized but
unissued Ordinary Shares, a sufficient number of Ordinary Shares to permit the
conversion of all Convertible Notes Outstanding into Ordinary Shares. All
Ordinary Shares delivered upon conversion of the Convertible Notes shall be duly
authorized, validly issued, fully paid and nonassessable.

     The Company covenants that if any Ordinary Shares to be provided for the
purpose of conversion of Convertible Notes hereunder require registration with
or approval of any governmental authority before such shares may be validly
issued upon conversion, the Company will in good faith and as expeditiously as
practicable endeavor to secure such registration or approval, as the case may
be.

                                       29
<PAGE>   33
Section 13.7. Conversion Duties of the Conversion Agent.

     The Conversion Agent shall (i) accept deposit on behalf of the Company of
any Convertible Note which the holder thereof desires to convert (and in respect
of which a conversion notice is deposited with the Convertible Agent prior to
the Conversion Date) together with a conversion notice duly completed and signed
(where necessary); (ii) require each converting Holder to pay in accordance with
Section 13.3 all stamp, issue, registration, excise and similar taxes or duties
or transfer costs (if any) (other than as specified in clause (iii) below)
arising on conversion in the country in which the Convertible Note is deposited
for conversion or payable in any jurisdiction consequent upon the issue,
delivery or transfer of Ordinary Shares or ADSs or any other property or cash
upon reversion to or to the order of a person other than the converting Holder;
and (iii) require the Company to pay in accordance with Section 13.3 all other
expenses arising on the issue, allotment and delivery of the Ordinary Shares
issuable upon conversion.

Section 13.8. Exercise of Conversion Rights by the Trustee.

     The Trustee may, at its absolute discretion (and without any responsibility
for any loss occasioned thereby), within the period commencing on the date six
days immediately prior to, and ending at the close of business on the third
Business Day immediately prior to April 2, 2006 or the Redemption Date fixed for
any early redemption of the Convertible Notes (on behalf of the relevant
Holders, absent instructions to the contrary) by notice in writing to the
Company exercise the conversion rights in respect of such Convertible Notes due
for redemption on such date and in respect of which conversion rights have not
previously been exercised by Holders if the Trustee is satisfied or is advised
by an investment bank of international repute appointed by the Trustee that the
net proceeds of an immediate sale of the Ordinary Shares arising from such
conversion (disregarding any liability (other than a liability of the Trustee)
to taxation or the payment of any capital, stamp, issue or registration duties
consequent thereon) would be likely to exceed by 5% or more the net proceeds on
redemption of the Convertible Notes.

     All of the Ordinary Shares issued or delivered on such conversion shall be
sold by, or on behalf of, the Trustee as soon as practicable, and (subject to
any necessary consents being obtained and to the deduction by the Trustee of any
amount which it determines to be payable in respect of its liability to taxation
and the payment of any capital, stamp, issue, transfer or registration duties
(if any) and any costs incurred by the Trustee in connection with the issue,
delivery and sale thereof) the net proceeds of sale together with accrued and
unpaid interest (if any) in respect of such Convertible Notes shall (if not in
U.S. dollars) be converted into U.S. dollars in such manner and at such time and
at such rates as the Trustee shall consider appropriate and be held by the
Trustee and distributed ratably to the holders of such Convertible Notes. The
amount payable to such holder shall be treated for all purposes as the full
amount due from us in respect of such Convertible Notes.

     The Trustee shall have no liability in respect of the exercise or
non-exercise of its discretion pursuant to the above or the timing of such

                                       30
<PAGE>   34
exercise or in respect of any such sale of Ordinary Shares or conversion of
any amounts into U.S. dollars, whether for the timing of any such sale or
conversion, the price at which any such Ordinary Shares are sold, the rate at
which any such amounts are converted into U.S. dollars or the inability to sell
any such Ordinary Shares or make such conversion or otherwise. In the event the
Trustee exercises conversion rights on behalf of any Holders of Convertible
Notes pursuant to this Section 13.8, notice of such exercise will be published
in a manner prescribed in Section 1.5.

     Any reference in this Supplemental Indenture to principal in respect of the
Convertible Notes shall, unless the context otherwise requires, also be deemed
to refer to any amounts which may be payable pursuant to the above."

                                  ARTICLE FIVE

           DEFAULTS AND REMEDIES WITH RESPECT TO THE CONVERTIBLE NOTES

     The Convertible Notes shall have the benefit of the following provisions
which shall replace Section 6.1, Section 6.2, and Section 6.3 of the Indenture,
respectively, in their entirety with respect to the Convertible Notes:

Section 6.1. Events of Default.

     "Event of Default", wherever used herein, means any one of the following
events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

          (1) default in the payment of the principal of any of the Convertible
     Notes at Maturity; or

          (2) default in the payment of any premium or interest on any of the
     Convertible Notes when it becomes due and payable, and continuance of such
     default for a period of 30 days; or

          (3) default in the performance, or breach, of any covenant or
     agreement of the Company in this Supplemental Indenture (other than a
     default in the performance, or breach, of a covenant or agreement which is
     specifically dealt with elsewhere in this Section), and continuance of such
     default or breach for a period of 60 days after there has been given, by
     registered or certified mail, to the Company by the Trustee or to the
     Company and the Trustee by the Holders of at least 25% in principal amount
     of the Convertible Notes Outstanding a written notice specifying such
     default or breach and requiring it to be remedied and stating that such
     notice is a "Notice of Default" hereunder; or

          (4) (A) there shall have occurred one or more defaults by the Company
     or any Material Subsidiary in the payment of the principal of Indebtedness
     aggregating US$30 million or more, when the same becomes due and payable at
     the Stated Maturity thereof, and such default or defaults shall have
     continued after any applicable grace period and shall not have been cured
     or waived or (B) Indebtedness of the Company or any Material

                                       31
<PAGE>   35
     Subsidiary aggregating US$30 million or more shall have been accelerated or
     otherwise declared due and payable, or required to be prepaid or
     repurchased (other than by regularly scheduled required prepayment), prior
     to the Stated Maturity thereof; and, in each case, continuance of such
     default or non-annulment of such acceleration for a period of 30 days after
     there has been given, by registered or certified mail, to the Company by
     the Trustee or to the Company and the Trustee by the Holders of at least
     25% in principal amount of the Convertible Notes Outstanding a written
     notice specifying such default or breach and requiring it to be remedied
     and stating that such notice is a "Notice of Default" hereunder; or

          (5) (A) the entry of a decree or order by a court having jurisdiction
     in the premises adjudging the Company or any of its Material Subsidiaries a
     bankrupt or insolvent, or approving as properly filed a petition seeking
     reorganization, arrangement, adjustment or composition of or in respect of
     the Company or any of its Material Subsidiaries for the benefit of its
     creditors under any applicable law, or appointing a receiver, liquidator,
     assignee, trustee, sequestrator (or other similar official) of the Company
     or any of its Material Subsidiaries or of any substantial part of its
     property, or ordering the winding up or liquidation of its affairs, and the
     continuance of any such decree or order unstayed and in effect for a period
     of 90 consecutive days; or (B) the institution by the Company or any of its
     Material Subsidiaries of proceedings to be adjudicated as bankrupt or
     insolvent, or the consent by it to the institution of bankruptcy or
     insolvency proceedings against it, or the filing by it of a petition or
     answer or consent seeking reorganization or relief for the benefit of its
     creditors under any applicable law, or the consent by it to the filing of
     any such petition or to the appointment of a receiver, liquidator,
     assignee, trustee, sequestrator (or other similar official) of the Company
     or such Material Subsidiary or of any substantial part of its property, or
     the making by it of an assignment for the benefit of creditors, or the
     admission by it in writing of its inability to pay its debts generally as
     they become due.

Section 6.2. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default occurs and is continuing, then in every such case
the Trustee or the Holders of not less than 25% in principal amount of the
Convertible Notes Outstanding may declare the Accreted Value of all the
Convertible Notes to be due and payable immediately, by a notice in writing to
the Company (and to the Trustee if given by Holders), and upon any such
declaration such Accreted Value shall become immediately due and payable.

     At any time after a declaration of acceleration has been made and before a
judgment or decree for payment of the money due has been obtained by the Trustee
as hereinafter provided in this Article, the Holders of a majority in principal
amount of the Convertible Notes Outstanding, by written notice to the Company
and the Trustee, may rescind and annul such declaration and its consequences if

          (1)  the Company has paid or deposited with the Trustee a sum
               sufficient to pay,

               (A)  all overdue interest on all Convertible Notes Outstanding,

                                       32
<PAGE>   36
               (B)  all unpaid principal of any Convertible Notes Outstanding
                    which has become due otherwise than by such declaration of
                    acceleration, and interest on such unpaid principal at the
                    rate borne by the Convertible Notes,

               (C)  to the extent that payment of such interest is lawful,
                    interest on overdue interest at the rate borne by the
                    Convertible Notes, and

               (D)  all sums paid or advanced by the Trustee hereunder and the
                    reasonable compensation, expenses, disbursements and
                    advances of the Trustee, its agents and counsel; and

          (2) all Events of Default, other than the non-payment of amounts of
     principal of or interest on Convertible Notes which have become due solely
     by such declaration of acceleration, have been cured or waived as provided
     in this Section 5.2.

     No such rescission shall affect any subsequent default or impair any right
consequent thereon.

Section 6.3. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if

          (a) default is made in the payment of any installment of interest on
     any Convertible Note when such interest becomes due and payable and such
     default continues for a period of 30 days, or

          (b) default is made in the payment of the principal of any Convertible
     Note at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to the Trustee for the benefit
of the Holders of such Convertible Notes, the whole amount then due and payable
on such Convertible Notes for principal, premium and interest, and interest on
any overdue principal and, to the extent that payment of such interest shall be
legally enforceable, upon any overdue installment of interest or premium, at the
rate borne by the Convertible Notes, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel.

     If the Company fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon the Convertible Notes and collect
the moneys adjudged or decreed to be payable in the manner provided by law out
of the property of the Company or any other obligor upon the Convertible Notes,
wherever situated.

     If an Event of Default occurs and is continuing, the Trustee may in its
discretion proceed to protect and enforce its rights and the rights of the
Holders by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any

                                       33
<PAGE>   37
covenant or agreement in this Supplemental Indenture or in aid of the exercise
of any power granted herein, or to enforce any other proper remedy.

                                   ARTICLE SIX

                                    COVENANTS

Section 6.1. Consolidation, Merger, Conveyance, Transfer or Lease

     The following provisions shall replace Article Five of the Indenture in its
entirety with respect to the Convertible Notes:

                                   "ARTICLE V

                                   SUCCESSORS

     Section 5.1. Company May Consolidate, etc., Only on Certain Terms.

     The Company shall not consolidate with or merge into any other corporation
or, together with or through one or more of its Subsidiaries, convey, transfer
or lease all or substantially all of the properties and assets of the Company
and its Subsidiaries on a consolidated basis to any Person, unless:

          (1) (A) the corporation formed by such consolidation or into which the
     Company is merged or the Person which acquires by conveyance or transfer,
     or which leases, the properties and assets of the Company substantially as
     an entirety (a) shall be a corporation, partnership or trust or other
     entity organized and validly existing under the laws of Singapore or the
     United States and (b) shall expressly assume, by an indenture supplemental
     hereto, executed and delivered to the Trustee, in a form satisfactory to
     the Trustee, the Company's obligation for the due and punctual payment of
     the principal of, and premium and interest, on all the Convertible Notes
     and the performance and observance of every covenant of this Supplemental
     Indenture and the Indenture on the part of the Company to be performed or
     observed , and (B) such supplemental indenture shall (a) provide that the
     Holder of each Convertible Note then Outstanding will have the rights,
     during the Conversion Period, to convert the Convertible Note into the kind
     and amount of Ordinary Shares, other securities, cash or other assets (with
     the Conversion Price appropriately allocated to such Ordinary Shares, other
     securities, cash or other assets) receivable upon the consolidation,
     merger, sale or similar events by a Holder of the number of Ordinary Shares
     into which the Convertible Note might have been converted immediately prior
     to that consolidation, merger, sale, transfer or similar events, and (b)
     provide for adjustments to Conversion Price which, for events subsequent to
     the effective date of such supplemental indenture, shall be as nearly
     equivalent as may be practicable to the adjustments provided for under
     Section 13.4;

          (2) immediately after giving effect to such transaction, no Event of
     Default shall have occurred and be continuing; and

          (3) the Company or such Person shall have delivered to the Trustee an
     Officer's Certificate and an Opinion of Counsel, each stating

                                       34
<PAGE>   38
     that such consolidation, merger, conveyance, transfer or lease and such
     supplemental indenture comply with the relevant terms and conditions of
     this Supplemental Indenture and that all conditions precedent herein
     provided for relating to such transaction have been complied with.

     This Section shall only apply to a merger or consolidation in which the
Company is not the surviving corporation and to conveyances, leases and
transfers by the Company as transferor or lessor.

Section 5.2. Successor Person Substituted.

     Upon any consolidation by the Company with or merger by the Company into
any other corporation or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety to any Person in accordance
with Section 5.1, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Supplemental Indenture with the same effect as
if such successor Person had been named as the Company herein, and in the event
of any such conveyance or transfer, the Company (which term shall for this
purpose mean the Person named as the "Company" in the first paragraph of this
Supplemental Indenture or any successor Person which shall theretofore become
such in the manner described in Section 5.1), except in the case of a lease,
shall be discharged of all obligations and covenants under this Supplemental
Indenture and the Convertible Notes and may be dissolved and liquidated.

Section 6.2. Negative Pledge.

     The following additional covenant shall apply to the Convertible Notes:

     6.2.1. So long as any Convertible Note remains Outstanding, the Company
shall not, and shall procure that none of its Material Subsidiaries shall,
create or permit to subsist any security interest upon the whole or any part of
any present or future property or assets to secure the repayment of, or any
guarantee or indemnity in respect of, any International Investment Securities
without (i) at the same time or prior thereto securing the Convertible Notes
equally and ratably with such securities or otherwise in a manner satisfactory
to the Trustee or (ii) providing such other security for the Convertible Notes
as the Trustee may, in its absolute discretion, deem to be not materially less
beneficial to the holders of Convertible Notes or as may be approved by an
extraordinary resolution of the Holders of Convertible Notes.

     6.2.2. The foregoing restriction shall not apply to any security interest
upon the whole or a part of any property or assets of the Company or any of its
Material Subsidiaries, which security interest is:

          (i) to secure any Indebtedness evidenced by International Investment
     Securities issued by the Company or by any of its Material Subsidiaries in
     each case solely for the purposes of financing the cost of the purchase,
     development, construction, equipping, alteration, repair or improvement of
     any property or assets acquired by the Company or by any of its Material
     Subsidiaries after April 2, 2001; provided that (A) the security interest
     is confined to such property or assets, (B) the principal amount of the
     International Investment Securities secured by such security interest shall
     not exceed such cost and (C) the security interest attaches to such

                                       35
<PAGE>   39
     property or assets concurrently with or within 120 days of the time of the
     acquisition of such property or assets or the completion of the activity
     being financed;

          (ii) to secure any Indebtedness evidenced by International Investment
     Securities existing on (A) any property or asset of any entity at the time
     the Company or one of its Subsidiaries acquire such entity after April 2,
     2001, whether by merger, consolidation or otherwise or (B) any property or
     asset at the time it is acquired by the Company or one of its Subsidiaries
     after April 2, 2001; provided that in each case such security interest
     shall not have been created in contemplation of or in connection with such
     acquisition;

          (iii) a renewal, extension or replacement (in whole or in part) of any
     security interest permitted in subsections (i) and (ii) above of this
     Section 6.2.2.

Section 6.3. Payment of Principal, Interest and Additional Amounts.

     The Company covenants and agrees for the benefit of the Holders that it
will duly and punctually pay the principal of and premium and interest on the
Convertible Notes in accordance with the terms of the Convertible Notes and this
Supplemental Indenture.

     All payments of, or in respect of, principal of and premium and interest on
the Convertible Notes shall be made without withholding or deduction for, or on
account of, any present or future taxes, duties, assessments or governmental
charges of whatever nature imposed or levied by or on behalf of Singapore or any
authority thereof or therein having power to tax unless these taxes, duties,
assessments or governmental charges are required to be withheld or deducted. In
that event, the Company agrees to pay by way of additional interest such
additional amounts of, or in respect of, principal, premium and interest as will
result (after deduction of such taxes, duties, assessments or governmental
charges and any additional taxes, duties, assessments or governmental charges of
Singapore) in the payment to each Holder of a Convertible Note of the amounts
that would have been payable in respect of such Convertible Notes had no
withholding or deduction been required, except that no Additional Amounts shall
be payable for or on account of:

          (i) any tax, duty, assessment or other governmental charge that would
     not have been imposed but for the fact that such Holder:

               (A) was for Singapore tax purposes treated as a resident of
          Singapore or who is otherwise subject to such taxes, duties,
          assessments or governmental charges by reason of his being connected
          with Singapore other than the mere ownership of, or receipt of payment
          under, such Convertible Note; or

               (B) presented such Convertible Note more than 30 days after the
          date on which the payment in respect of such Convertible Note first
          became due and payable or provided for, whichever is later, except to
          the extent that the Holder would have been entitled to such Additional
          Amounts if it had presented such Convertible Note for payment on any
          day within such period of 30 days;

          (ii) any estate, inheritance, gift, sale, transfer, personal property
     or similar tax, assessment or other governmental charge;

          (iii) any tax, duty, assessment or other governmental charge which is
     payable otherwise than by deduction or withholding from payment of
     principal of or premium or interest on the Convertible Notes;

                                       36
<PAGE>   40
          (iv) any tax, duty, assessment or other governmental charge that is
     imposed or withheld by reason of the failure to comply by the Holder or the
     beneficial owner of a Convertible Note with a request by the Company
     addressed to the Holder (A) to provide information concerning the
     nationality, residence or identity of the Holder or such beneficial owner
     or (B) to make any declaration or other similar claim or satisfy any
     information or reporting requirement, which, in the case of (A) or (B), is
     required or imposed by a statute, treaty, regulation or administrative
     practice of the taxing jurisdiction as a precondition to exemption from all
     or part of such tax, duty, assessment or other governmental charge; or

          (v) any combination of the items listed above;

          nor shall Additional Amounts be paid with respect to any payment of
     the principal of or premium or interest on any Convertible Note to any
     Holder who is a fiduciary or partnership or other than the sole beneficial
     owner of the payment to the extent that payment would be required by the
     laws of Singapore to be included in income for tax purposes of the
     fiduciary if the beneficial owner would not otherwise have been entitled to
     the Additional Amounts.

     Any reference herein to the payment of the principal of or interest on any
Convertible Note shall be deemed to include the payment of Additional Amounts
provided for in this Supplemental Indenture to the extent that, in such context,
Additional Amounts are, were or would be payable under this Supplemental
Indenture.

Section 6.4. Maintenance of Office or Agency.

     The Company will maintain in Luxembourg, Singapore and The City of New York
an office or agency where Convertible Notes may be presented or surrendered for
payment, where Convertible Notes may be presented for conversion, where
Convertible Notes may be surrendered for registration of transfer or exchange
and where notices and demands to or upon the Company in respect of the
Convertible Notes and this Supplemental Indenture may be served. The principal
office of the Company shall serve as the office or agency of the Company in
Singapore. The office of the Trustee in The City of New York shall serve as such
office or agency of the Company in The City of New York. The offices of
Kredietbank SA Luxembourgeoise (the "Luxembourg Paying Agent") in Luxembourg
shall serve as the office or agency of the Company in Luxembourg. The Company
will give prompt written notice to the Trustee of any change in the location of
any such offices or agencies. If at any time the Company shall fail to maintain
any such required offices or agencies or shall fail to furnish the Trustee with
the addresses thereof, such presentations, surrenders, notices and demands may
be made or served at the offices of the Trustee or the Luxembourg Paying Agent
in the relevant locations, and the Company hereby appoints the Trustee and the
Luxembourg Paying Agent as its Paying Agent to receive all such presentations,
surrenders, notices and demands. The Security Register of the Convertible Notes
will be kept by the Trustee in New York. The Company also hereby appoints the
Trustee and the Luxembourg Paying Agent as Conversion Agents.

     The Company may also from time to time designate one or more other offices
or agencies (in or outside of Luxembourg or The City of New York) where the
Convertible Notes may be presented or surrendered for any or all such purposes
and may from time to time rescind any such designation; provided, however, that
no such designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in each of Luxembourg and The City of
New York for such purposes and provided, further, that the Company shall be
required at all times to maintain such an office or agency in each place of
payment for the Convertible Notes. The Company will give prompt written notice
to the Trustee of any such designation or rescission and any change in the
location of any such other office or agency.

                                       37
<PAGE>   41
                                  ARTICLE SEVEN

                                  MISCELLANEOUS

Section 7.1. Effect of Headings.

     The Article and Section headings herein are for convenience only and shall
not affect the construction hereof.

Section 7.2. Successors and Assigns.

     All covenants and agreements in this Supplemental Indenture by the Company
shall bind its successors and assigns, whether so expressed or not.

Section 7.3. Separability Clause.

     In case any provision in this Supplemental Indenture or in the Convertible
Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

Section 7.4. Governing Law.

     THIS SUPPLEMENTAL INDENTURE AND THE CONVERTIBLE NOTES ISSUED HEREUNDER
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

Section 7.5 Satisfaction and Discharge; Defeasance.

     Section 8.1 through Section 8.4 of the Indenture, regarding satisfaction
and discharge, legal defeasance and covenant defeasance with respect to the
Securities of any Series shall not be applicable to the Convertible Notes.

Section 7.6. Repayment to Company.

     Section 8.5 of the Indenture is hereby amended and restated with respect to
the Convertible Notes as follows:

     The Trustee and the Paying Agent shall pay to the Company upon request any
money held by them in trust for the payment of principal and interest that
remains unclaimed for two years. After that, Securityholders entitled to the
money must look to the Company for payment as general creditors unless an
applicable abandoned property law designates another person. All liability of
the Trustee or such Paying Agent with respect to such trust money shall
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation
in the Borough of Manhattan, The City of New York, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such publication, any unclaimed balance of
such money then remaining will be repaid to the Company.

     Claims in respect of payment of principal of, and interest on, the
Convertible Notes will be prescribed unless made within a period of ten years,
in the case of principal and premium, and five years, in the case of interest,
from the date when the relevant principal, premium or interest becomes due and
payable.

                                       38
<PAGE>   42
Section 7.7. Place of Payment.

     Section 9.3(f) of the Indenture hereby is amended and restated with respect
to the Convertible Notes as follows:

          Without the consent of each Securityholder affected, such amendment or
          waiver may not: (f) change the place of payment or make the principal
          of or interest, if any, on any Security payable in any currency other
          than that stated in the Security.

Section 7.8. Jurisdiction.

     The Company agrees that any suit, action or proceeding against the Company
arising out of or based upon this Supplemental Indenture or the transactions
contemplated hereby may be instituted in any U.S. Federal or State court located
in the State of New York, County of New York ("New York Court"); and waives any
objection which it may now or hereafter have to the laying of venue of any such
proceeding, and irrevocably accepts and submits to the non-exclusive
jurisdiction of such courts in any suit, action or proceeding. The Company has
appointed CT Corporation System as its authorized agent (the "Company's
Authorized Agent"), upon whom process may be served in any suit, action or
proceeding arising out of or based upon this Supplemental Indenture or the
transactions contemplated herein which may be instituted in any New York Court
and expressly accepts the non-exclusive jurisdiction of any such court in
respect of any such suit, action or proceeding. The Company consents to process
being served in any action or proceeding by mailing a copy thereof by registered
or certified mail to the Company's Authorized Agent. The Company hereby
represents and warrants that the Company's Authorized Agent has accepted such
appointment and has agreed to act as said agent for service of process, and the
Company agrees to take any and all action, including the filing of any and all
documents that may be necessary to continue such appointment in full force and
effect as aforesaid. Service of process upon the Company's Authorized Agent
shall be deemed, in every respect, effective service of process upon the
Company. Notwithstanding the foregoing, any action arising out of or based upon
this Supplemental Indenture may be instituted in any other court of competent
jurisdiction, including those in Singapore.

           [The rest of this page has been intentionally left blank.]

                                       39
<PAGE>   43
     IN WITNESS WHEREOF, the parties have caused this Supplemental Indenture to
be duly executed, and attested, all as of the date and year first written above.

                                            CHARTERED SEMICONDUCTOR
                                            MANUFACTURING LTD

                                            By: /s/ CHIA SONG HWEE
                                               ---------------------------------
                                            Name:  Chia Song Hwee
                                            Title: Senior Vice President, Chief
                                                   Financial Officer and Chief
                                                   Administrative Officer

                                            WELLS FARGO BANK MINNESOTA,
                                            NATIONAL ASSOCIATION, as Trustee

                                            By: /s/ ROBERT  REYNOLDS
                                               ---------------------------------
                                            Name:  Robert Reynolds
                                            Title: Vice President

                                       40
<PAGE>   44
                                                                       Exhibit A

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A
NOMINEE OF THE DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY,
BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR
A NOMINEE OF SUCH A SUCCESSOR DEPOSITORY.1

                  CHARTERED SEMICONDUCTOR MANUFACTURING LTD

                     2.50% Senior Convertible Notes due 2006

No.                                                           US$
    ----                                                         ---------------

CUSIP No. 16133RAA4

     Chartered Semiconductor Manufacturing Ltd, a corporation duly organized and
existing under the laws of Singapore (herein called the "Company", which term
includes any successor Person under the Supplemental Indenture hereinafter
referred to), for value received, hereby promises to pay to                or
                                                            --------------
registered assigns, 115.493% of the principal sum of               United States
                                                     -------------
Dollars on April 2, 2006, at the office or agency of the Company referred to
below, and to pay interest thereon in arrears commencing October 2, 2001 and
semi-annually thereafter, on April 2, and October 2 in each year, at the rate of
2.50% per annum accruing from April 2, 2001 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, until the
principal hereof is paid or duly provided for, and (to the extent lawful) to pay
on demand interest on any overdue interest at the rate borne by the Convertible
Notes from the date on which such overdue interest becomes payable to the date
payment of such interest has been made or duly provided for. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Supplemental Indenture, be paid to the Person in whose
name this Convertible Note (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be the March 18 or September 17 (whether or not a Business Day), as the
case may be, immediately preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for shall forthwith cease to be payable
to the Holder on the relevant Regular Record Date, and such overdue interest,
and (to the extent lawful) interest on such overdue interest at the rate borne
by the Convertible Notes, may be paid to the Person in whose name this
Convertible Note (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Convertible Notes not less than 10 days prior to such Special Record Date, or
may be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Convertible Notes may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in said Supplemental Indenture. Payment of the principal of and
interest on this Convertible Note will be made at the office or agency of the
Company maintained for that purpose in The City of New York, Luxembourg, or at
such other office or agency of the Company as may be maintained for such
purpose, in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts; provided,
however, that payment of interest may be made at the option of the Company (i)
by check mailed to the address of the Person entitled thereto as such address
shall appear on the Security Register or (ii) by transfer to an account
maintained by the payee located in the United States.

----------
1 This paragraph should be included only if the Note is issued in global form.

                                       41
<PAGE>   45
     Reference is hereby made to the further provisions of this Convertible Note
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     Unless the certificate of authentication hereon has been duly executed by
the Trustee referred to on the reverse hereof by manual signature, this
Convertible Note shall not be entitled to any benefit under the Indenture, as
supplemented by this Supplemental Indenture, or be valid or obligatory for any
purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                            CHARTERED SEMICONDUCTOR
                                               MANUFACTURING LTD

                                            By
                                              ----------------------------------

                                            By
                                              ----------------------------------

                                            Dated:

                          CERTIFICATE OF AUTHENTICATION

     This is one of the Convertible Notes referred to in the within-mentioned
Supplemental Indenture.

                                            WELLS FARGO BANK MINNESOTA,
                                            NATIONAL ASSOCIATION, as Trustee

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

                                       42
<PAGE>   46
                      [Form of Reverse of Convertible Note]

                     2.50% Senior Convertible Notes due 2006

     Unless and until it is exchanged in whole or in part for Notes in
certificated form, this Note may not be transferred except as a whole by the
Depository to a nominee of the Depository or by a nominee of the Depository to
the Depository or another nominee of the Depository or by the Depository or any
such nominee to a successor Depository or a nominee of such successor
Depository. Unless this certificate is presented by an authorized representative
of The Depository Trust Company (55 Water Street, New York, New York) ("DTC"),
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 may be requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or such other entity as may be 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.2

     This Convertible Note is one of a duly authorized issue of securities of
the Company designated as its 2.50% Senior Convertible Notes due 2006 (herein
called the "Convertible Notes"), limited (except as otherwise provided in the
Supplemental Indenture referred to below) in aggregate principal amount of up to
US$575,000,000, which may be issued under an indenture (the "Indenture"), dated
as of April 2, 2001, as supplemented by a supplemental indenture (herein called
the "Supplemental Indenture"), dated as of April 2, 2001, between the Company
and Wells Fargo Bank Minnesota, National Association, as trustee (herein called
the "Trustee", which term includes any successor trustee under the Supplemental
Indenture), to which Indenture and Supplemental Indenture reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Trustee and the
Holders of the Convertible Notes, and of the terms upon which the Convertible
Notes are, and are to be, authenticated and delivered.

     This Convertible Note may be redeemed or repurchased as set forth in the
Supplemental Indenture and summarized below. In the event the Company redeems or
repurchases this Convertible Note for any reason at a time other than April 2,
2006, the "Redemption Price" will equal 100% of the principal amount of this
Convertible Note together with a premium calculated to provide a Holder with an
annual yield of 5.25% from April 2, 2001 to the date of such redemption or
repurchase, computed on a semi-annual internal rate of return bond equivalent
basis, taking into account all interest paid on this Convertible Note and
treating as having been paid when due all interest accrued and unpaid on this
Convertible Note through the date of determination.

     This Convertible Note is redeemable at the option of the Company, as a
whole but not in part, on any date at a Redemption Price determined as described
above, plus any accrued and unpaid interest to the Redemption Date if the
Company determines that, as a result of any change in or amendment to the laws
or any regulations or rulings promulgated thereunder of Singapore or any
official or judicial authority thereof or therein having power to tax, or any
change in the general application or official or judicial interpretation of such
laws, regulations or rulings, or any change in the official application or
interpretation of, or any execution or amendment to, any treaty or treaties
affecting taxation to which Singapore is a party, which change, execution or
amendment becomes effective on or after the original issue date of the
Convertible Notes, the Company has been or shall be required to pay Additional
Amounts with respect to the Convertible Notes.

     This Convertible Note is redeemable at the option of the Company, in whole
or in part, at any time on or after April 2, 2003, at a Redemption Price
determined as described above, plus any accrued and unpaid interest to the
Redemption Date; provided, however, that no such redemption may be made unless
the closing price per Ordinary Share on the Singapore Exchange (translated into
U.S. dollars at the Prevailing Exchange Rate on such Trading Day) or the ADSs on
the Nasdaq National Market for any 20

----------
2 This paragraph should be included only if the Note is issued in global form.

                                       43
<PAGE>   47
Trading Days in a 30 consecutive Trading Day period ending not more than five
days prior to the date on which notice of such redemption is given, is at least
125% of the Conversion Price (translated into U.S. dollars at the Fixed Exchange
Rate) or of the Conversion Price per ADS (translated into U.S. dollars at the
Fixed Exchange Rate specified in the Supplemental Indenture and taking into
account the current 10:1 Ordinary Share-to-ADS ratio), in each case as adjusted
through, and effective on, such notice date.

     Notwithstanding the foregoing, the Company may redeem all of the
Convertible Notes Outstanding, including this Convertible Note, at a Redemption
Price determined as described above, plus any accrued and unpaid interest to the
Redemption Date if at any time the aggregate principal amount of the Convertible
Notes Outstanding is less than 5% of the aggregate principal amount of the
Convertible Notes originally issued.

     The Trustee may, at its absolute discretion (and without any responsibility
for any loss occasioned thereby), within the period commencing on the date six
days immediately prior to, and ending at the close of business on the third
Business Day immediately prior to April 2, 2006 or the Redemption Date fixed for
any early redemption of the Convertible Notes (on behalf of the relevant
Holders, absent instructions to the contrary) by notice in writing to the
Company exercise the conversion rights in respect of such Convertible Notes due
for redemption on such date and in respect of which conversion rights have not
previously been exercised by Holders if the Trustee is satisfied or is advised
by an investment bank of international repute appointed by the Trustee that the
net proceeds of an immediate sale of the Ordinary Shares arising from such
conversion (disregarding any liability (other than a liability of the Trustee)
to taxation or the payment of any capital, stamp, issue or registration duties
consequent thereon) would be likely to exceed by 5% or more the amount of the
redemption moneys and interest which would otherwise be payable in respect of
such unexercised Convertible Notes.

     All of the Ordinary Shares issued or delivered on such conversion shall be
sold by, or on behalf of, the Trustee as soon as practicable, and (subject to
any necessary consents being obtained and to the deduction by the Trustee of any
amount which it determines to be payable in respect of its liability to taxation
and the payment of any capital, stamp, issue, transfer or registration duties
(if any) and any costs incurred by the Trustee in connection with the issue,
delivery and sale thereof) the net proceeds of sale together with accrued and
unpaid interest (if any) in respect of such unexercised Convertible Notes shall
(if not in U.S. dollars) be converted into U.S. dollars in such manner and at
such time and at such rates as the Trustee shall consider appropriate and be
held by the Trustee and distributed ratably to the holders of such unexercised
Convertible Notes. The amount payable to such holder shall be treated for all
purposes as the full amount due from us in respect of such Convertible Notes.

     The Trustee shall have no liability in respect of the exercise or
non-exercise of its discretion pursuant to the above or the timing of such
exercise or in respect of any such sale of Ordinary Shares or conversion of any
amounts into U.S. dollars, whether for the timing of any such sale or
conversion, the price at which any such Ordinary Shares are sold, the rate at
which any such amounts are converted into U.S. dollars or the inability to sell
any such Ordinary Shares or make such conversion or otherwise. In the event the
Trustee exercises conversion rights on behalf of any Holders of Convertible
Notes pursuant to Section 13.8 of the Supplemental Indenture, notice of such
exercise will be published in a manner prescribed in Section 1.5 of the
Supplemental Indenture.

     This Convertible Note, or a portion thereof equal to US$1,000 or any
integral multiple thereof, is subject to repayment by the Company at the option
of the Holder hereof upon the occurrence of certain Repayment Events described
in Section 3.2 of the Supplemental Indenture (including events relating to
change of control of the Company or delisting of the Ordinary Shares or ADSs),
at a Repayment Price determined as described above, plus any accrued and unpaid
interest to the Repayment Date. In order to be repaid at the option of the
Holder, this Convertible Note, with the "Notice to Elect Repayment" form duly
completed by the Holder hereof (or the Holder's attorney duly authorized in
writing), must be received by the Company at its office or agency maintained for
that purpose in the Borough of Manhattan, The City of New York, Singapore, or
Luxembourg not later than the date specified by the Company in its notice of the
Repayment Event in accordance with Section 3.2 of the Supplemental Indenture.
Exercise of such option by the Holder of this Convertible Note shall be
irrevocable unless waived by the Company.

                                       44
<PAGE>   48
     In the case of any redemption or repayment of Convertible Notes, interest
installments whose Stated Maturity is on or prior to the Redemption Date or
Repayment Date will be payable to the Holders of such Convertible Notes, or one
or more Predecessor Securities, of record at the close of business on the
relevant Regular Record Date referred to on the face hereof, as provided in the
Supplemental Indenture. Convertible Notes (or portions thereof) for whose
redemption or repayment provision is made in accordance with the Supplemental
Indenture shall cease to bear interest from and after the Redemption Date or
Repayment Date (as applicable).

     This Convertible Note is convertible into Ordinary Shares of the Company at
any time on or after May 2, 2001 and before the close of business on the third
Business Day preceding the earlier of April 2, 2006 and the Redemption Date
fixed for any early redemption, at the Conversion Price then in effect;
provided, however, that, if this Convertible Note is called for redemption
pursuant to Section 3.1 of the Supplemental Indenture, such conversion right
shall terminate at the close of business on the third Business Day preceding the
Redemption Date for this Convertible Note. A Holder may convert a portion of
this Convertible Note equal to US$1,000 or any integral multiple thereof.

     The number of Ordinary Shares issuable upon conversion of this Convertible
Note (or a portion hereof equal to US$1,000 or any integral multiple thereof)
shall be determined by dividing the principal amount (translated into Singapore
dollars at the Fixed Exchange Rate specified in the Supplemental Indenture) of
this Convertible Note or portion hereof surrendered for conversion by the
Conversion Price per Ordinary Share in effect on the Conversion Date. The
initial Conversion Price is S$6.5170 per Ordinary Share, subject to adjustment
for certain anti-dilution events as provided in Section 4.1 of the Supplemental
Indenture. The Ordinary Shares issuable upon conversion will be duly authorized,
validly issued, fully paid and nonassessable and will rank equally with all
other Ordinary Shares.

     No Holder will be entitled to receive physical share certificates in
respect of the Ordinary Shares arising from the conversion of the Convertible
Notes. Delivery of the Ordinary Shares shall be made by crediting such Ordinary
Shares to a Holder's securities account or the securities account of a Holder's
depository agent with CDP. The Company shall allot and issue the Ordinary Shares
arising from the conversion of the Convertible Notes in accordance with
instructions as set out in the conversion notice and shall deliver to CDP the
share certificate(s) relating to such Ordinary Shares in the name of CDP for the
credit of the Holder's securities account or the securities account of Holder's
depository agent securities account as specified in the Conversion Notice as
soon as practicable, and in any event not later than 14 days, after the
Conversion Date (or such longer period as may be required to comply with any
applicable fiscal or other laws or regulations). The Company will register the
Person or Persons designated for the purpose in the Conversion Notice as
holder(s) of the relevant number of Ordinary Shares in its share register. The
Person or Persons specified for that purpose will become the holder of record of
the number of Ordinary Shares issuable upon conversion with effect from the date
he is or they are registered as such in the Company's share register (the
"Registration Date").

     A Holder may elect to receive Ordinary Shares upon conversion in the form
of ADSs. In such event, the Company agrees to, on behalf of such Holder, as soon
as practicable, deliver to and deposit with the Depository or its custodian, in
accordance with the terms of the ADS Deposit Agreement, such number of Ordinary
Shares as the Holder would have received upon conversion had he not elected to
receive such Ordinary Shares in the form of ADSs. Such Ordinary Shares will be
registered in the name of the Depository or its nominee. Subject to compliance
with the terms of the ADS Deposit Agreement, including payment of the fees and
expenses of the ADS depository by such Holder, the ADS depository will issue
such number of ADSs representing the deposited Ordinary Shares to such Holder
based on the applicable share-to-ADS ratio then in effect.

     All calculations relating to redemption and conversion, including
adjustment of the Conversion Price, will be made to the nearest 0.01 of an
Ordinary Share or other property or the nearest cent. However, fractions of
Ordinary Shares will not be issued on conversion or deposited with the
Depository, and no cash adjustments will be made in respect of any such
fraction. Under the ADS Deposit Agreement, the Depository will not issue
fractions of ADSs. To the extent the Depository does not accept a certain number
of Ordinary Shares for deposit pursuant to the ADS Deposit Agreement, the
Company will deliver such Ordinary Shares to the Holder.

                                       45
<PAGE>   49
     To convert this Convertible Note, a Holder must (a) complete and manually
sign a "Conversion Notice" substantially in the form included herein, including
an election on whether to receive Ordinary Shares or ADSs upon conversion, and
deliver such notice to the Conversion Agent, (b) surrender this Convertible Note
to the Conversion Agent duly endorsed or assigned to the Company or in blank,
(c) furnish appropriate endorsements and transfer documents (if any) required by
the Registrar or the Conversion Agent, and (d) pay any required transfer or
similar tax and make any other required payment. The date on which the Holder
satisfies all of those requirements is the "Conversion Date."

     The Supplemental Indenture contains various provisions concerning
circumstances where the record date set for a dividend on the Ordinary Shares or
an Adjustment Effective Date for the adjustment of the Conversion Price falls
between the Conversion Date and the Registration Date.

     No payment or adjustment will be made for accrued and unpaid interest on
this Convertible Note when delivered for conversion. The delivery of the fixed
number of Ordinary Shares or ADSs upon conversion will be deemed to satisfy the
Company's obligation to apply the principal amount and any accrued and unpaid
premium and interest on this Convertible Note from the Interest Payment Date
immediately preceding the Conversion Date to the Conversion Date.

     If any Holder surrenders this Convertible Note for conversion after the
close of business on the Regular Record Date for the payment of an installment
of interest and before the close of business on the related Interest Payment
Date, then, notwithstanding such conversion, the interest payable on such
Interest Payment Date shall be paid to the Holder of this Convertible Note on
such Regular Record Date. In such event, unless this Convertible Note has been
called for redemption, this Convertible Note, when surrendered for conversion,
must be accompanied by delivery of a check or draft payable to the Company in an
amount equal to the interest payable on such Interest Payment Date on the
portion so converted. If such payment does not accompany this Convertible Note,
this Convertible Note shall not be converted.

     A conversion notice once given will be irrevocable and may not be withdrawn
without the prior written consent of the Company. The Company or the Conversion
Agent on its behalf may reject any incomplete or incorrect conversion notice.
All costs and expenses incurred by an incomplete or incorrect conversion notice
will be for the account of the relevant Holder.

     As conditions precedent to conversion, the Holder must pay to the
Conversion Agent any taxes and capital, stamp, issue and registration duties
arising on conversion, other than any taxes or capital or stamp duties payable
in Singapore in respect of the allotment and issuance of the Ordinary Shares and
listing of the Ordinary Shares upon conversion. In addition, the Holder will be
required to pay any tax or duty relating to any disposal or any deemed disposal
relating to conversion and transfer involved in the issue or delivery of the
Ordinary Shares upon conversion in a name other than such Holder's. The Company
will pay all other expenses arising on the issue, allotment and delivery of the
Ordinary Shares issuable upon conversion.

     In the event of conversion or repayment of this Convertible Note in part
only, a new Convertible Note or Convertible Notes for the unpaid portion hereof
shall be issued in the name of the Holder hereof upon the cancellation hereof.

     If an Event of Default shall occur and be continuing, the principal of all
the Convertible Notes may be declared due and payable in the manner and with the
effect provided in the Supplemental Indenture.

     The Supplemental Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders under the Supplemental
Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in aggregate principal amount of the Convertible Notes at
the time Outstanding. The Supplemental Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of
the Convertible Notes at the time Outstanding, on behalf of the Holders of all
the Convertible Notes, to waive compliance by the Company with certain
provisions of the Supplemental Indenture and certain past defaults under the
Supplemental Indenture and their consequences. Any such

                                       46
<PAGE>   50
consent or waiver by or on behalf of the Holder of this Convertible Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Convertible Note and of any Convertible Note issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Convertible Note.

     As provided in and subject to the provisions of the Supplemental Indenture,
the Holder of this Convertible Note shall not have the right to institute any
proceeding with respect to the Supplemental Indenture or for the appointment of
a receiver or trustee or for any other remedy thereunder, unless such Holder
shall have previously given the Trustee written notice of a continuing Event of
Default with respect to the Convertible Notes, the Holders of not less than 25%
in principal amount of the Convertible Notes at the time Outstanding shall have
made written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee indemnity, and the Trustee
shall not have received from the Holders of a majority in principal amount of
Convertible Notes at the time Outstanding a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Convertible Note
for the enforcement of any payment of principal hereof or interest hereon on or
after the respective due dates expressed herein.

     No reference herein to the Supplemental Indenture and no provision of this
Convertible Note or of the Supplemental Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Convertible Note at the times, place, and
rate, and in the coin or currency, herein prescribed.

     As provided in the Supplemental Indenture and subject to certain
limitations therein set forth, the transfer of this Convertible Note is
registrable on the Security Register of the Company, upon surrender of this
Convertible Note for registration of transfer at the office or agency of the
Company maintained for such purpose in Luxembourg and The City of New York,
respectively, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Registrar duly executed by,
the Holder hereof or his attorney duly authorized in writing, and thereupon one
or more new Convertible Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     The Convertible Notes are issuable only in fully registered form without
coupons in denominations of US$1,000 and any integral multiple thereof. As
provided in the Supplemental Indenture and subject to certain limitations
therein set forth, the Convertible Notes are exchangeable for a like aggregate
principal amount of Convertible Notes of a different authorized denomination, as
requested by the Holder surrendering the same.

     No service charge shall be made for any registration of transfer or
exchange of Convertible Notes, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.

     Prior to the time of due presentment of this Convertible Note for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Convertible Note is
registered as the owner hereof for all purposes, whether or not this Convertible
Note be overdue, and neither the Company, the Trustee nor any agent shall be
affected by notice to the contrary.

     All terms used in this Convertible Note which are defined in the
Supplemental Indenture shall have the meanings assigned to them in the
Supplemental Indenture.

                                       47
<PAGE>   51
                        FORM OF NOTICE TO ELECT REPAYMENT

     The undersigned registered Holder of the within Convertible Note hereby
irrevocably requests and instructs the Company to repay this Convertible Note
(or the portion thereof specified below), pursuant to Section 3.2 of the
Supplemental Indenture referred to in this Convertible Note, on the "Repayment
Date" specified in the Company's notice of occurrence of the Repayment Event, at
a Repayment Price equal to 100% of the principal amount thereof, together with a
premium calculated to provide an annual yield from April 2, 2001 to (but
excluding) the Repayment Date, of 5.25% per annum, computed on a semi-annual
internal rate of return bond equivalent basis, taking into account all interest
paid on such Convertible Note and treating as having been paid when due all
interest accrued and unpaid on such Convertible Note to the Repayment Date, plus
accrued and unpaid interest to the Repayment Date, to the undersigned at:

                -------------------------------------------------
                     (Name and Address of the Undersigned.)

     For this Notice to Elect Repayment to be effective, this Convertible Note
with the Notice to Elect Repayment duly completed must be received, not later
than the day that is 10 days prior to the Repayment Date, as specified in the
Company's notice of occurrence of the Repayment Event, by the Company at its
office or agency in the Borough of Manhattan, The City of New York.

     If less than the entire principal amount of the within Convertible Note is
to be repaid, specify the portion thereof (which shall be US$1,000 or an
integral multiple thereof) which is to be repaid: US$          .
                                                     ----------

     If less than the entire principal amount of the within Convertible Note is
to be repaid, specify the denomination(s) of the Convertible Note(s) to be
issued for the unpaid amount (US$1,000 or any integral multiple of US$1,000):
US$          .
   ----------

Dated:

                                            By:
                                               ---------------------------------
                                               Signature of Registered Holder

                                       48
<PAGE>   52
                            FORM OF CONVERSION NOTICE

     The undersigned registered Holder of the within Convertible Note hereby
irrevocably exercises the option to convert this Convertible Note (or the
portion thereof specified below) into Ordinary Shares of the Company and elects
to receive such Ordinary Shares in the form of:

          [ ]  Ordinary Shares, for the principal amount of the Convertible Note
               of US$          , and/or
                     ----------
          [ ]  ADSs, for the principal amount of the Convertible Note of
               US$          ,
                  ----------

pursuant to the terms of the Supplemental Indenture referred to in this
Convertible Note, and directs that Ordinary Shares or ADSs, as the case may be,
issuable upon conversion and any Convertible Note representing any unconverted
principal amount hereof, be issued and delivered to the registered Holder hereof
unless a different name has been provided below:

              -----------------------------------------------------
               (Name, Address and Taxpayer Identification Number.)

     If less than the entire principal amount of this Convertible Note is to be
converted, specify the denomination(s) of the Convertible Note(s) to be issued
for the unconverted amount (US$1,000 or any integral multiple of US$1,000):
US$          .
   ----------

     If Ordinary Shares or any portion of this Convertible Note not converted
are to be issued in the name of a person other than the undersigned, the
undersigned will pay all transfer taxes payable with respect thereto and is
delivering herewith a certificate in proper form certifying that the applicable
restrictions on transfer have been complied with.

     The undersigned hereby acknowledges that fractions of Ordinary Shares will
not be issued on conversion and will not be deposited with the Depository and no
cash adjustments will be made in respect of any such fraction. The undersigned
hereby agrees that, promptly after request of the Company or Conversion Agent,
it will furnish such proof in support of this certificate as the Company or
Conversion Agent may request.

Dated:

                                            By:
                                               ---------------------------------
                                            Signature of Registered Holder

                                            By:
                                               ---------------------------------
                                            Signature Guaranty

     For Conversion Agent's Use only:

     (A) Deposit Date:
                      -------------------

         Conversion Date:
                         ----------------

     (B) Conversion Price on Conversion Date:
                                             -----------------

     (C) Number of Ordinary Shares or ADSs (as applicable) issuable:
                                                                    --------

                                       49
<PAGE>   53
                         SCHEDULE OF EXCHANGES OF NOTES(3)

     The following exchanges of a part of this Global Note for other Notes have
been made:

<TABLE>
<CAPTION>
                                                                       PRINCIPAL AMOUNT OF        SIGNATURE OF
                            AMOUNT OF              AMOUNT OF             THIS GLOBAL NOTE         AUTHORIZED
                            DECREASE              INCREASE IN             FOLLOWING SUCH            OFFICER
                       IN PRINCIPAL AMOUNT      PRINCIPAL AMOUNT           DECREASE (OR          OF TRUSTEE OR
DATE OF EXCHANGE       OF THIS GLOBAL NOTE    OF THIS GLOBAL NOTE            INCREASE)           NOTE CUSTODIAN
----------------       -------------------    -------------------      -------------------       --------------
<S>                    <C>                    <C>                      <C>                       <C>
</TABLE>

------------
(3) This should be included only if the Note is issued in global form.

                                       50

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