Document:

<PAGE>   1
                                                                    EXHIBIT 10.1

                ST GROUP MANAGEMENT & SUPPORT SERVICES AGREEMENT

THIS AGREEMENT is made the 27th day of December 1999

BETWEEN:

(1)  SINGAPORE TECHNOLOGIES PTE LTD, a company incorporated in Singapore and
     having its registered office at 51 Cuppage Road, #09-01 StarHub Centre,
     Singapore 229 469 ("STPL"); and

(2)  ST ASSEMBLY TEST SERVICES LTD, a company incorporated in Singapore and
     having its registered office at 5 Yishun Street 23 Singapore 768442 ("the
     Company").

WHEREAS:

(A)  STPL is a majority shareholder of the Company, and the corporate
     headquarters for the Singapore Technologies group of companies and provides
     administrative and support services to its related companies within and
     outside Singapore.

(B)  STPL has invaluable experience in the fields of finance, treasury,
     investment risk review, governmental relations, business development,
     management information systems, human resources management and
     development, legal and corporate secretarial matters and internal audit.
     STPL is also able to offer the Company the benefits of a global network.
     Further, the "Singapore Technologies" name, affiliation to STPL and STPL's
     wide spectrum of industries provide the Company with operational and
     financial leverages (such as improved credit rating, easier access to
     funding and lower cost of borrowing) in its dealings with external parties
     ("STPL Franchise").

(C)  STPL and the Company acknowledge that the centralisation of support staff
     in STPL enables them to share the cost of business services, enhance
     communication and eliminate duplication of efforts.

                                     - 1 -
<PAGE>   2
NOW IT IS HEREBY AGREED as follows:

1.   CORPORATE SERVICES & SUPPORT

1.1  STPL shall maintain throughout the duration of this Agreement a staff of
     personnel with acknowledged proficiency in their respective fields who
     shall render the Services, as defined in Clause 1.2 below and according to
     the headcounts allocated, to the Company. STPL shall also continue to work
     on strengthening and improving its global network and reputation for the
     benefit of the ST group of companies.

1.2  "Services" shall refer to services in the areas specified in the Appendix
     attached.

1.3  In addition to the Services mentioned in Clause 1.1 above, the Company may
     request STPL to render additional specific services relating to specific
     projects, or require personnel from STPL to be seconded or assigned to the
     Company or its subsidiaries for an agreed period of time. In such events,
     the said additional services shall be invoiced on a case by case basis at
     terms and conditions to be mutually agreed between the parties.

2.   CONSIDERATION

2.1  In consideration of the Services provided by STPL hereunder, the Company
     agrees to pay ST such amount (the "Consideration") to be determined at the
     beginning of each year in accordance with the Appendix. The method and
     basis of determination of the Consideration shall be reviewed by the
     parties every 3 years. STPL and the Company may upon mutual agreement,
     delete any of the Services specified in the Appendix or add new Services
     to the Appendix, in which event that Consideration shall be adjusted
     accordingly by mutual agreement. Any variation shall be subject to the
     written agreement of both parties.

2.2  The Company shall pay to STPL the Consideration in four equal advance
     instalments upon presentation by STPL of its invoices at the beginning of
     each financial quarter.

2.3  All payments by the Company to STPL shall be made in full in Singapore
     Dollars within thirty (30) days of the date of invoice, without set-off or
     deduction of taxes, duties, assessments or other charges of any kind or
     description. The Company shall bear all goods and services tax payable on
     the supply of the Services.

3.   TERM AND TERMINATION

3.1  This Agreement shall take effect from the date hereof and shall remain
     valid until terminated pursuant to Clauses 3.2 and 3.3 below.

                                     - 2 -
<PAGE>   3
3.2  If the Company fails to effect payment of the Consideration in
     accordance with Clause 2, and such default shall not be remedied
     within fourteen (14) days after written notice of such default is
     given by STPL to the Company, then at any time after the expiration
     of such period of fourteen (14) days, STPL may give written notice to
     the Company of its desire to terminate this Agreement, whereupon this
     Agreement shall terminate on the date specified in such notice.

3.3  The parties agree that this Agreement shall terminate forthwith in
     the event the Company ceases to be a subsidiary of STPL.

3.4  The termination of this Agreement howsoever caused shall be without
     prejudice to any obligations, rights or remedy which have accrued prior to
     such termination and shall not affect any provision of this Agreement
     which is expressly or by implication provided to come into effect on or
     continue in effect after such termination.

4.   CONFIDENTIALITY

     Except as authorised in writing by the respective party, each party shall
     keep secret and shall not at any time, whether during or after this
     Agreement, use for its own or any other person's advantage or reveal to
     any person any of the trade secrets, secret or confidential operations,
     processes or dealings, or any secret or confidential information
     concerning the organisation, business or undertaking of the other party or
     any of its subsidiaries or associated companies.

5.   SEVERABILITY

     If any provision of this Agreement at any time shall be deemed invalid,
     illegal or unenforceable in any respect under Singapore law, such
     invalidity, illegality or unenforceability shall not in any way affect or
     impair any other provision of this Agreement and this Agreement shall be
     construed as if such invalid or illegal or unenforceable provision had
     been severed from the Agreement.

6.   GENERAL

6.1  This Agreement contains the entire agreement between the parties in
     respect to the subject matter hereof and supersedes and cancels any and
     all previous negotiations, offers, agreements (whether written or oral) in
     respect thereto.

6.2  This Agreement or any rights and liabilities hereunder may not be assigned
     or transferred by either party hereto without the prior written consent of
     the other party hereto.

                                      - 3 -
<PAGE>   4
6.3  No failure or delay on the part of either party hereto in exercising any
     power or right hereunder shall operate as a waiver thereof nor shall any
     single or partial exercise of such right or power preclude any other or
     further exercise of any right or power hereunder.

7.   GOVERNING LAW

7.1  This Agreement shall be governed by and construed in all respects in
     accordance with the laws of Singapore.

7.2  Any dispute arising out of or in connection with this Agreement,
     including any question regarding its existence, validity or termination,
     shall be referred to and finally resolved by arbitration in Singapore in
     accordance with the Arbitration Rules of the Singapore International
     Arbitration Centre ("SIAC Rules") for the time being in force, which Rules
     are deemed to be incorporated by reference into this Clause.

                                     - 4 -
<PAGE>   5

     IN WITNESS WHEREOF the parties have caused their duly authorised
representatives to set their hands.

Signed by                          }
for and on behalf of               }
SINGAPORE TECHNOLOGIES PTE LTD     }
in the presence of:-               }  /s/ GAN CHEE YEN
                                   }  ---------------------------------------
                                   }  Name: Gan Chee Yen
                                   }  Designation: Group Financial Controller
                                   }

/s/ ISOO TAN
----------------------
Name:

Signed by                          }
for and on behalf of               }
ST ASSEMBLY TEST SERVICES LTD      }
in the presence of:-               }  /s/ WONG KOK KIT
                                   }  --------------------------------------
                                   }  Name: Wong Kok Kit
                                   }  Designation: Chief Financial Officer
                                   }

/s/ BERNARD LIEW
---------------------
Name: Bernard Liew

                                     - 5 -
<PAGE>   6
                                    APPENDIX

                          COMPUTATION OF CONSIDERATION

The Consideration payable to STPL shall be calculated on the following basis:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
     DESCRIPTION OF SERVICES                     FEE BASIS              AMOUNT (S$'000)
----------------------------------------------------------------------------------------
<S>  <C>                                         <C>                    <C>

1    Corporate Secretarial Work

     Comprising corporate secretarial            Co Secretary + 1             150
     support for STATS.                          equivalent headcount
                                                 cost

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

2    Executive Resource Support

     Comprising support provided to STATS        1 equivalent                 150
     Executive Resource and Compensation         headcount cost
     Committee ("ERCC") in the design and
     implementation (including
     benchmarking) of compensation
     structure for executives; and together
     with STATS, support to STATS ERCC
     in the implementation of decisions and
     support for administration of
     compensation of executives under
     STATS ERCC

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

3    Internal Audit

     Comprising continuing audit plans,          1 1/2 equivalent             150
     monitoring statutory compliance and         headcount cost
     compliance with relevant procedures
     and policies.

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

4    Finance

     Comprising treasury related activities,     1 equivalent                 200
     risk management, and accounting             headcount cost
     systems, policies, guidelines and
     procedures

----------------------------------------------------------------------------------------
</TABLE>

                                      - 6 -
<PAGE>   7
<TABLE>
<S>  <C>                                         <C>                          <C>
----------------------------------------------------------------------------------------

5    Information Technology                      Based on
                                                 reimbursement of its          200
                                                 share of group wide
                                                 licences and IT
                                                 infrastructure (eg
                                                 Lotus Notes,
                                                 Hyperion).

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

6    STPL Franchise

     Comprising benefits derived from the        Based on 0.25% of            3,650
     STPL global network and affiliation to      Group Sales or
     STPL, and                                   S$5mil, whichever is
                                                 lower.

     Financial leverage such as bank             Based on 0.5% of ST
     guarantee support, provision of standby     Financial Support or
     credit facilities, improved credit rating,  S$5mil, whichever is
     easier access to funding and lower cost     lower.
     of borrowing.

                                                 GRAND TOTAL                  4,500

----------------------------------------------------------------------------------------
</TABLE>

                                     - 7 -
<PAGE>   8
Where:

STATS means the Company.

Group Sales means the Company and its subsidiaries' worldwide actual sales. As
the Consideration is payable in advance, the Consideration for this Service
shall be determined based on the Company and its subsidiaries' worldwide
planned sales at the beginning of the year, and at the end of the year, the
final Consideration payable for such Service shall be determined based on the
actual sales. STPL shall refund to the Company any excess payment and the
Company shall make payment to STPL of any shortfall in payment within fourteen
(14) days after the determination of the final Consideration payable for such
Service.

ST Financial Support means the projected annual average outstanding amount of
(a) standby credit facilities provided by STPL to the Company and (b) guarantee
facilities provided by the STPL to third parties to secure loans granted by
such third parties to the Company.

For the avoidance of doubt, the headcount cost allocated in the Appendix above
shall be applicable for the first year from the date hereof and shall be
adjusted every year thereafter based on mutual agreement.

                                     - 8 -<PAGE>   1
                                                                    EXHIBIT 10.2

THIS AGREEMENT is made the 5th day of June One Thousand Nine Hundred and Ninety
Eight (1998) Between:

ST ASSEMBLY TEST SERVICES LTD a company incorporated in Singapore and having its
registered office at 5 Yishun Street 23 Singapore 468442 hereinafter called "the
Company") of the one part; And

ECONOMIC DEVELOPMENT BOARD, a Corporate Body established in the Republic of
Singapore by The Economic Development Board Act (Cap. 85) of 250, North Bridge
Road, #24-00 Raffles City Tower Singapore 179101 (hereinafter called "the
Board") of the other part.

WHEREAS:

(1)  The Company has applied to the Board for a term loan up to a maximum
aggregate principal amount of Singapore Dollars Ninety Million (S$90,000,000.00)
under the Capital Assistance Scheme of the Board.

(2)  The Board is willing to grant the term loan to the Company, upon the terms
and subject to the conditions hereinafter set forth.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:-

1.   DEFINITIONS

1.1  In this Agreement, unless the context otherwise requires, the following
words or expressions shall have the following meanings respectively:-

     (a)  "Business Day" means a day on which banks in Singapore are open for
          business excluding Sunday.

     (b)  "Day" means a calendar day.

     (c)  "Dollars" and the sign"$" respectively mean the lawful currency of the
          Republic of Singapore.

     (d)  "Drawing" means any, each or all (as the context may require) of the
          drawings made by the Company under the Term Loan and includes the
          First Drawing as defined hereof.

     (e)  "Event of Default" and "Events of Default" mean any, each or all (as
          the context may require) of the Events of Default described in Clause
          15 hereof.

     (f)  "First Drawing" means the first of the drawings made by the Company
          under the Term Loan.

<PAGE>   2

     (g)  "Fixed Productive Assets" means the buildings, facilities and
          equipment, for the semiconductor assembly and test project.

     (h)  "Guarantee" means the Corporate Guarantee to be issued by Singapore
          Technologies Pte Ltd duly executed and signed by the Corporate's
          authorised signatories, in favour of the Board and in the form and
          containing terms acceptable to the Board.

     (i)  "Interest Rate" means the rates of interest determined in accordance
          with Clause 7.2 hereof.

     (j)  "Interest Payment Dates" means the day falling on the first Business
          Day of March or the first Business Day of September as the case may
          be and the first Interest Payment Date shall be the Interest Payment
          Date immediately following the date of the First Drawing of the Term
          Loan.

     (k)  "Interest Period" means the period or periods determined as follows:-

          (i)    the Interest Period in relation to the First Drawing shall
                 begin on the date on which that Drawing is made hereunder and
                 shall end on the first Interest Payment Date;

          (ii)   the Interest Period in respect of any subsequent Drawing shall
                 begin on the date on which the relevant subsequent Drawing is
                 made and shall end on the Interest Payment Date falling
                 immediately thereafter;

          (iii)  each successive Interest Period shall begin on the last
                 Interest Payment Date and shall end on the Interest Payment
                 Date falling six (6) months immediately following;

          (iv)   if any Interest Period would otherwise end on a day which is
                 not a Business Day that Interest Period shall be extended to
                 the next succeeding day which is a Business Day;

          (v)    if any Interest Period is extended by the application of (iv)
                 above, the following Interest Period shall (without prejudice
                 to the application of (iv) above) end on the day on which it
                 would have ended if the preceding Interest Period had not been
                 so extended; and

          (vi)   any amount to be repaid under clause 8 shall have a final
                 Interest Period expiring on the relevant Repayment Date.

     (l)  "Month" means a calendar month.

     (m)  "person" shall include a company, body of persons, association or
          body corporate or unincorporated.

<PAGE>   3
     (n)  "Repayment Dates" means the first Day of March and the first Day of
          September of each year.

     (o)  "Term Loan" means the loan facility in the aggregate amount of
          Singapore Dollars Ninety million (S$90,000,000.00) to be made
          available to the Company by the Board in accordance with the terms
          and conditions set out in this Agreement and shall also be deemed to
          include the whole or any part thereof.

     (p)  "Year" means a calendar year.

1.2  Unless the context otherwise requires, words importing the singular number
include the plural number and vice versa.

1.3  The words "hereof", "herein", "hereon" and "hereunder" and words of
similar import, when used in this Agreement, refer to this Agreement as a whole
and not to any particular provision of this Agreement.

1.4  The headings to the Clauses hereof shall not be deemed to be a part
thereof or be taken in consideration in the interpretation or construction
thereof or of this Agreement.

1.5  Reference herein to Clauses are references to Clauses of this Agreement.

2.   TERM LOAN

     Subject to the provisions of this Agreement and in particular those of
Clause 3 hereof, the Board will make available to the Company the Term Loan
at the times and in the manner as hereinafter provided. The Term Loan shall be
for a period of 5 years, inclusive of a 2 year grace period for repayment of
the Term Loan as provided in Clause 8 herein.

3.   CONDITIONS PRECEDENT AND AVAILABILITY

     The right of the Company to make any Drawing or Drawings under the Term
Loan, and the obligations of the Board to make available the same shall be
subject to the following conditions precedent, that is to say:-

     (a)  There shall not exist at or prior to any Drawing, any Event of
          Default or any condition, event or act which, with the giving of
          notice or lapse of time, or both, would constitute such an Event of
          Default.

<PAGE>   4
     (b)  All representations, warranties and statements contained herein, or
          otherwise made in writing in connection herewith or in any
          certificate or statement furnished pursuant to any provision of
          this Agreement or in any document referred to herein made by the
          Company shall be true and correct with the same effect as though
          made on the date on which the Drawing is to be made.

     (c)  The Board shall have received, in form and substance satisfactory
          to the Board, the following:-

          (i)    A copy of the Memorandum and Articles of Association
                 of the Company duly certified by a Director and the Secretary
                 of the Company to be a true copy thereof;

          (ii)   A copy, certified by a Director and Secretary of the
                 Company, of the resolution of the Board of Directors of the
                 Company, which is in full force and effect, approving the terms
                 and conditions contained in this Agreement and authorising a
                 person or persons to sign this Agreement and any other document
                 to be given to the Board from time to time by the Company;

          (iii)  Specimen signatures of the persons authorised to sign
                 this Agreement on behalf of the Company, and to sign the
                 notices of Drawing and any other document to be given from time
                 to time by the Company, such specimens to be certified by a
                 Director or the Secretary of the Company to be the true
                 signatures of such persons respectively; and

          (iv)   The Guarantee relating to the Term Loan to be made
                 and duly executed.

     (d)  All acts, conditions and things required to be done and performed and
          to have happened precedent to the execution and delivery of this
          Agreement and the Guarantee and to constitute this Agreement and the
          Guarantee legal, valid and binding obligations enforceable in
          accordance with their respective terms, shall have been done and
          performed and have happened in compliance with all applicable laws.

     (e)  There is no breach by the Company of any of the terms, conditions and
          undertakings herein contained.

4.   PURPOSE OF THE TERM LOAN

4.1  Subject to the terms and conditions herein contained and in particular to
those of Clause 3, the Term Loan will be made available by the Board to the
Company for financing the Fixed Productive Assets of the semiconductor assembly
and test project.
<PAGE>   5
4.2  Upon advance of a Drawing under Clause 5, the Company shall apply all the
proceeds thereof for the purposes described in Clause 4.1 above and save with
the prior written consent of the Board for no other purpose whatsoever.

5.   DRAWINGS OF TERM LOAN

5.1  Subject to the terms and conditions of this Agreement and in particular to
all the conditions of Clause 3 being complied with the Board will make available
drawings under the Term Loan in accordance with a disbursement schedule
submitted by the Company and approved by the Board at least 45 Days before the
First Drawing of the Term Loan.

5.2  The Company shall give notice of Drawing to the Board not later than thirty
(30) Business Days prior to the intended date of Drawing and each notice of
Drawing shall be substantially in the form set out in the Appendix I hereto and
shall:-

     (i)    state the date (which must be a Business Day) and the
            amount of the proposed Drawing;

     (ii)   be irrevocable;

     (iii)  commit the Company to borrow the amount and on the date stated; and

     (iv)   constitute a representation and warranty that at the date
            thereof the warranties and representations set out in Clause 12 are
            true and no Event of Default and no event or act which with the
            giving of notice or lapse of time or both would constitute such an
            Event of Default has occurred.

5.3  The First Drawing shall be made not later than 25 May 1998 or such other
later date as may be approved by the Chairman of the Board or his lawful
representative.

5.4  All Drawings shall be made on the first Day of March or the first Day of
September of the respective years or such other date as may be approved by the
Chairman of the Board or his lawful representative.

6.   AVAILABILITY OF TERM LOAN

     The Term Loan shall be available for Drawing for a period of 5 years from
the date of the First Drawing after which date any part of the Term Loan not
drawn shall be cancelled.

<PAGE>   6

7.   INTEREST

7.1  The Company shall pay to the Board on each Interest Payment Date interest
in arrears on the amounts drawn and outstanding under the Term Loan
from time to time in respect of each Interest Period relating thereto
determined in accordance with clause 1.1(k) and at the Interest Rate determined
in accordance with sub-clause 7.2 hereof.

7.2  Interest will be charged by the Board at the prevailing rate per annum
declared by the Central Provident Fund Board (henceforth referred to as "CPF
Board") for contributions made to the CPF under the CPF Act plus one per cent
(1%) (the "Interest Rate") and shall be payable in arrears at six-monthly
intervals, the first payment to be made on the Interest Payment Date as defined
in Clause 1.1(j) hereof.

7.3  The amount of interest payable on the drawings under the Term Loan from
time to time owing and outstanding shall be calculated at the Interest Rate on
the basis of a year of three hundred and sixty five (365) Days for the actual
number of Days elapsed.

7.4  The certificate of the Board in writing as to the determination of the
amount of interest payable on each Interest Payment Date shall be conclusive
and binding upon the parties hereto, save for manifest error.

7.5  The Company recognises and accepts that it is commercial practice for
interest on amounts in default to be charged and that the rate of interest to
be applied by the Board on the amounts in default shall be three per cent (3%)
per annum above the average prevailing prime interest rate as reported by the
Monetary Authority of Singapore compounded on a monthly basis, which will
represent a genuine estimate of the damage the Board would suffer in the event
of a failure by the Company in the payment on the due date of any principal
and/or interest on the amounts due and payable to the Board.

8.   REPAYMENT OF THE TERM LOAN

     The Company shall repay the principal of the amounts drawn under the Term
Loan in seven (7) equal consecutive six-monthly instalments on the Repayment
Dates. The first of such instalments shall be paid on the first Repayment Date
following two (2) Years from the date of the First Drawing of the Term Loan or
such other later date as the Board may determine in its absolute discretion.

9.   PAYMENT PROVISIONS

9.1  All payments to be made by the Company under this Agreement shall be made
not later than 11 a.m. (Singapore time) on the relevant day to the Board at
its address described above or at such other address as the Board may from time
to time designate by notice in writing to the Company not less than ten (10)
Business Days prior to the date of any such payment hereunder.

<PAGE>   7
9.2  If any sum becomes due for payment under this Agreement on a day which is
not a Business Day, such payment shall be made on the next succeeding Business
Day and all calculation of interest shall be adjusted accordingly.

10.  PREPAYMENT

10.1 The Company may prepay in the inverse order of maturity any part of the
Term Loan or the entire Term Loan before maturity on paying a fee amounting to
a quarter of one percent (1/4 of 1%) of the amount prepaid for every period of
six (6) months or any lesser period before maturity or one percent (1 %) of the
amount prepaid, whichever is the lesser amount.

10.2 The Company shall give the Board seven (7) Days' prior written notice of
the intention to prepay any amount described in Clause 10.1.

10.3 In the event the Company is required to prepay the principal sum owing
under the Term Loan pursuant to Clause 15.2 (a) hereof the Company shall pay to
the Board the fee at the rate described in Clause 10.1 above on the principal
sum owing.

11.  SECURITY

     Prior to the first Drawing of the Term Loan, the Company shall procure the
requisite Guarantee to be given in favour of the Board.

12.  WARRANTIES AND REPRESENTATIONS

12.1 The Company hereby warrants and represents to the Board as follows:-

     (a)  that it is lawfully incorporated, validly existing and in
          good standing under the laws of the Republic of Singapore;

     (b)  that it has the corporate power and authority to carry
          on the business as now being conducted;

     (c)  that it has the corporate power to execute and perform
          this Agreement and to borrow hereunder;

     (d)  that the execution, delivery and performance of this
          Agreement and the borrowings hereunder have been duly
          authorised by all requisite corporate action and will not
          violate any provision of any agreement or other
          instrument to which the Company is a party;
<PAGE>   8

     (e)  that its latest audited accounts submitted to the Board are correct
          and complete and accurately represent the financial condition of the
          Company on the date thereof and the results of its operation for the
          period then ended and such audited accounts shows all known present
          and future liabilities, direct or contingent, of the Company as of
          the date thereof and each such audited accounts referred to herein
          was prepared in accordance with generally accepted accounting
          principles;

     (f)  save as disclosed to the Board that there has been no material
          adverse change in the business activities operations or financial
          condition of the Company since the date of the latest audited
          accounts referred to in sub-paragraph (e) above;

     (g)  save as otherwise disclosed to the Board, there are no actions, suits
          or proceedings pending or, to the knowledge of the Company,
          threatened against the Company or any of its subsidiaries, at law or
          in equity (whether or not purportedly on behalf of the Company, or
          any of its subsidiaries) before any court or competent body
          adjudicating such matters, which involve the possibility of any
          judgement or liability which may result in any material adverse
          change in the business, operations, properties or assets, or in the
          condition, financial or otherwise of the Company or its parent or any
          of its subsidiaries and adversely affect the Company's ability to
          make repayment of the Term Loan;

     (h)  that to the best of the knowledge of the Company no steps have been
          taken or are being taken to appoint a receiver and/or manager or
          judicial manager or liquidator or any other person over it or any of
          its assets or in any winding up action.

12.2 Each of the warranties and representations contained in the preceding
sub-clause shall survive and continue to have full force and effect after the
execution of this Agreement and that they will be true and correct and fully
observed as though made on the date of Drawing or each Interest Payment Date
with reference to the facts and circumstances then subsisting.

13.  AFFIRMATIVE UNDERTAKING

     The Company hereby undertakes and agrees with the Board as follows:-

     (a)  that the Term Loan granted by the Board under the provisions of this
          Agreement and every part thereof shall be used solely for the purpose
          and in the manner hereinbefore stipulated and not for any other
          purpose or manner save with the prior written consent of the Board.

<PAGE>   9
     (b)  that it will carry on and conduct its business and affairs with due
          diligence and efficiency in accordance with sound technical financial
          industrial and managerial standards and practices including the
          maintenance of adequate financial records with qualified personnel
          and in accordance with its Memorandum and Articles of Association.

     (c)  that it will furnish and provide the Board with and permit the Board
          to obtain all such statements information explanation and data, except
          information of a confidential nature, as the Board may reasonably
          require, by prior written notice, regarding the affairs operations
          administration financial or other whatsoever state or condition of
          the Company or any of the matters in this Clause mentioned.

     (d)  that it will furnish to the Board particulars of any kind of
          immovable property hereafter acquired by the Company.

     (e)  that the Board shall have the right as it may reasonably request, by
          prior written notice, to inspect any land or premises where the
          Company carries on its business and inspect the same and all
          property and assets whatsoever therein or thereon and all accounts
          records and statements wherever the same may be situate and to
          make inventories and record thereof.

     (f)  that it will supply to the Board certified copies of all resolutions
          passed which materially affect the financial state and condition
          of the Company at general and/or special meetings of the Company
          within seven (7) Days from the date of the passing of such
          resolutions.

     (g)  that it will deliver to the Board every year immediately after the
          issue of the audited accounts a copy of the Company's audited
          balance sheet and profit and loss accounts audited by a firm of
          auditors of international repute together with Auditors' and
          Directors' Reports and will also deliver to the Board a copy of
          the annual return which the Company is required by law to file
          with the Registrar of Companies.

     (h)  that it shall punctually pay all rents rates assessments taxes and
          all outgoings payable in respect of any land/or premises belonging
          to the Company or at which it carries on business and obtain all
          necessary licences and comply with all laws regulations rules
          and orders relating to the carrying on of its business on such
          premises.

     (i)  that it will keep all its plant machinery equipment buildings
          construction fixtures fittings implements and other effects in
          good and substantial repair and proper working condition to the
          satisfaction of the Board.
<PAGE>   10
     (j)  that it shall not dismantle pull down or remove any part of the
          buildings and fixtures, except in cases where such dismantling
          pulling down or removal shall in the opinion of the Company be
          rendered necessary by reason of the same being obsolete worn out
          or damaged, in which case the Company shall give sufficient
          written notice to the Board and will replace such property by
          property of similar nature and value after giving intimation to
          the Board.

     (k)  that it shall given to the Board such written authorities or other
          directions and provide such facilities and access as the Board may
          require for the aforesaid inspection and shall pay all costs fees
          travelling and other out-of-pocket expenses whether legal or
          otherwise in respect of such inspection.

     (l)  that insofar as may be necessary the Company shall amend its
          Memorandum and Articles of Association so as to enable it to
          observe and perform all the covenants undertakings terms
          stipulations conditions and other provisions of this Agreement.

14.  NEGATIVE UNDERTAKINGS

     The Company hereby undertakes and agrees with the Board that it shall not
without the written consent of the Board, which consent shall not be
unreasonably withheld:-

     (a)  embark on any new project or substantial expansion or diversification
          of its present business and operations, which are not related to
          its present business activities;

     (b)  invest its funds by way of deposits (other than deposits with banks
          licensed by the Monetary Authority of Singapore), loans, share
          capital or otherwise in any other concern or issue or give
          guarantees for the account or on behalf of any person or otherwise
          become contingently liable for or in connection with any obligations
          or indebtedness of any person;

     (c)  effect any form of reconstruction including amalgamation with another
          company which will result in a change in the control of the Company;

     (d)  create or permit to arise or subsist, any mortgage, charge (whether
          fixed or floating), pledge, lien or other encumbrances whatsoever
          (except those which have been specifically disclosed to and
          approved by the Board respectively) on any of its properties or
          assets, both present and future whatsoever and wheresoever
          situate;
<PAGE>   11
     (e)  declare or pay any dividend or make any income or capital
          distribution, whether in cash or in specie, to its share-
          holders or any of them; or

     (f)  raise, borrow, take, make, issue or give, as the case may
          be, any loans, debentures, bonds or credits from or to any
          persons.

15.  EVENTS OF DEFAULT

15.1 If any one or more of the following Events of Default shall occur, that is
     to say:

     (a)  if the Company shall fail to pay or otherwise discharge when due any
          sums of money, whether principal, interest, fees or otherwise, payable
          under this Agreement;

     (b)  if the Company shall default in the payment of any principal or
          interest or any other obligation for borrowed money (whether or not
          to the Board) beyond any period of grace provided in respect thereof;

     (c)  if any representation or warranty made in or in pursuance of this
          Agreement or in any certificate, statement or other document
          delivered in connection with the execution and delivery hereof or in
          pursuance of this Agreement shall be or become incorrect in any
          material respect;

     (d)  if the Company defaults in the due performance of any undertaking,
          condition or obligation on its part to be performed and observed
          hereunder (other than the payment of any sum due hereunder) and
          such default (if capable of being rectified) shall not be rectified
          for a period of thirty (30) Days after the date of receipt by the
          Company of written notice of such default from the Board;

     (e)  if a petition is presented in any court of competent jurisdiction or
          a resolution is passed for the winding-up of the Company or for the
          filing or any application for placing the Company under judicial
          management or any similar or analogous proceedings are taken against
          the Company and are not withdrawn within thirty (30) Days after being
          presented;

     (f)  if any encumbrancer or lessor shall take possession or a receiver
          and/or manager, judicial manager, liquidator or other similar officer
          is appointed of the whole of the undertaking, property or assets, or
          any part thereof, of the Company;

     (g)  if a distress or execution is levied or enforced upon or sued out
          against any part of the property or assets of the Company and is not
          discharged within thirty (30) Days of being levied and the Board is of
          the reasonable opinion that such an event will be materially
          prejudicial to the interests of the Board;

<PAGE>   12
     (h)  if a judgement or order is made against the Company and is not
          discharged within sixty (60) Days and the Board is in that
          case of the reasonable opinion that the said judgement will
          materially affect the Company's ability to perform and observe
          its obligations under this Agreement;

     (i)  if the Company becomes insolvent or is unable or deemed unable
          to pay its debts or admits in writing its inability to pay its
          debts, as they mature, or enters into composition, compromise
          or arrangement with its creditors or makes a general assignment
          for the benefit of its creditors and the Board is of the opinion
          that any such event will be materially prejudicial to the interests
          of the Board;

     (j)  if a winding-up petition is presented by or against the guarantor
          of the Guarantee or analogous proceedings shall be taken by or against
          it and is not discharged within thirty (30) Days after being
          presented;

     (k)  if the Company ceases or threatens to cease to carry on its
          business and the Board is of the opinion that it will materially
          affect the ability of the Company to perform and observe its
          obligations under this Agreement;

     (l)  if any licence, consent or approval of any authority at any time
          necessary to enable the Company to comply with and perform its
          obligations under this Agreement to a material extent shall be
          revoked, withheld or materially modified or shall otherwise not be
          granted or fail to remain in full force and effect;

     (m)  if any of the consents, authorities, approvals, waivers or
          resolutions referred to in Clause 3 shall be modified in a manner
          unacceptable to the Board or shall be wholly or partly revoked,
          withdrawn, suspended or terminated or shall expire and not be
          renewed or shall otherwise fail to remain in full force and its
          effect and such circumstances are considered by the Board to be
          material;

     (n)  if without the prior written consent of the Board there is any
          change in the shareholding of the Company which will result in a
          change in the control of the Company;

     (o)  if a situation shall have arisen, which shall make it improbable
          that the company will be able to perform its obligations under
          this Agreement;

     (p)  if the Board determines in its absolute discretion that its
          interests under the Guarantee is or are in jeopardy;

then and in any of such event, the Board may, by notice in writing to the
Company declare that an Event of Default has occurred and such declaration
shall be deemed to take effect from the date of such an Event of Default.

<PAGE>   13

15.2 Upon the declaration by the Board that an Event of Default has occurred:-

     (a)  the whole of the principal sum drawndown and owing under the Term
          Loan, interest thereon and all other sums agreed to be paid under
          this Agreement shall immediately become due and payable without any
          demand or notice of any kind by the Board to the Company; and

     (b)  it shall be lawful for the Board to exercise all or any rights,
          powers or remedies under this Agreement, the Guarantee given to the
          Board or any one or more of them.

15.3 In the event of an occurrence of an Event of Default before the Term Loan
shall have been fully drawn or utilised hereunder, the Board's obligations
hereunder shall automatically and forthwith cease.

15.4 After the declaration by the Board that an Event of Default has occurred,
all moneys received or recovered by the Board (whether such moneys shall have
been received or recovered as a result of or arising from its exercise of all
or any rights, powers or remedies under this Agreement, the Guarantee or any
one or more of them or by way of a set-off or otherwise) shall be held by it
and shall be applied as follows:-

     (a)  Firstly, in or towards payment of all costs charges and expenses, if
          any, incurred in enforcing this Agreement, the Guarantee or any one or
          more of them.

     (b)  Secondly, in or towards payment to the Board of all moneys and
          liabilities for the time being due, owing or outstanding under this
          Agreement and where such moneys and liabilities are of a contingent
          nature, in or towards making full and adequate provisions for payment
          of such moneys and liabilities as and when they become due and
          payable; and

     (c)  Thirdly, any surplus shall be paid to the Company.

16.  NOTICES

16.1 Except as otherwise expressly provided herein, any notice, request, demand
or other communication to be given or served hereunder by one of the parties
hereto to or on the other or others may be delivered at or sent by prepaid
registered post or by facsimile to the address or addresses herein specified of
the other party or parties and shall be deemed to be duly served:

     (a)  if it is delivered, at the time of delivery,

     (b)  if it is sent by prepaid registered post, one (1) Day after posting
          thereof, or
<PAGE>   14
     (c)  if it is sent by facsimile, immediately after transmission thereof, if
          the date of transmission is a Business Day, and if such a date is not
          a Business Day, then the notice by facsimile shall be deemed to be
          served on the immediately next succeeding Business Day.

Except as otherwise expressly provided herein, all notices, requests, demands or
other communications which are required by this Agreement to be in writing may
be made by facsimile.

16.2 For the purpose of this Clause 16 each of the parties hereto shall from
time to time notify the other party in writing of an address in Singapore where
such notice, request, demand or other communication as aforesaid can be given
or served and such notification shall be effective only when it is actually
received. In the absence of such notification, the notice, request, demand or
other communication aforesaid may be given or served at the addresses of the
respective parties as stated above.

17.  WAIVER NOT TO PREJUDICE RIGHT OF BOARD

     The Board may from time to time and at any time waive either
unconditionally or on such terms and conditions as it may deem fit any breach
by the Company of any of the undertakings stipulations terms and conditions
herein contained and any modification thereof but without prejudice to its
powers rights and remedies for enforcement thereof, provided always that:-

     (a)  no neglect or forbearance of the Board to require and enforce
          payment of any moneys hereunder or the performance and observance
          of any undertaking stipulation term or condition herein contained,
          nor any time which may be given to the Company shall in any way
          prejudice or affect any of the rights powers or remedies of the
          Board at any time afterwards to act strictly in accordance with the
          provisions hereof;

     (b)  no such waiver of any such breach as aforesaid shall prejudice the
          rights of the Board in respect of any other or subsequent breach of
          any of the undertakings stipulations terms or conditions aforesaid.

18.  INDULGENCE OF THE BOARD

     The liability of the Company hereunder shall not be impaired or discharged
by reason of any time or other indulgence being granted by or with the consent
of the Board to any person who or which may be in any way liable to pay any of
the moneys secured hereby by any other security in favour of the Board or by
reason of any arrangement being entered into or composition accepted by the
Board which has the effect of modifying the operation of law or otherwise its
rights and remedies under the provisions of this Agreement.
<PAGE>   15

19.  SEVERABILITY

     In case any provision in this Agreement shall be, or at any time shall
become invalid, illegal or unenforceable in any respect under any law, such
invalidity, illegality or unenforceability shall not in any way affect or impair
the other provisions of this Agreement but this Agreement shall be construed as
if such invalid or illegal or unenforceable provision contained herein or
therein did not form a part of this Agreement.

20.  GOVERNING LAW

     This Agreement shall be governed by and construed in all respects in
accordance with the laws of the Republic of Singapore.

21.  MISCELLANEOUS

21.1 All legal and other professional fees, out-of-pocket expenses, charges and
expenses of and in connection with this Agreement shall be paid by the Company.

21.2 The Company shall further pay all legal fees as between solicitor and
client and other costs and disbursements incurred in connection with or
demanding and enforcing payment of moneys due under this Agreement and
Guarantee and otherwise howsoever in enforcing the performance of any other
undertakings stipulations terms conditions or provisions of hereof and thereof.

21.3 A certificate signed by a duly authorised officer for the time being of
the Board as to the amount of moneys and liabilities for the time being due to
the Board or incurred by the Board under this Agreement and Guarantee shall be
conclusive and binding on the Company, save for any computation or clerical
error.

21.4 This Agreement shall be binding upon the successors of the Company and
shall enure to the benefit of the Board and its successors and assigns.
<PAGE>   16
IN WITNESS WHEREOF the parties hereto have hereunto affixed their respective
common seals.

The Common Seal of
ST ASSEMBLY TEST SERVICES LTD
was hereunto affixed in the
presence of:-

                    /s/ [ILLEGIBLE SIGNATURE]
                    -------------------------
                    Director
                                                                    [SEAL]

                    /s/ [ILLEGIBLE SIGNATURE]
                    -------------------------
                    Director/Secretary

The Common Seal of the ECONOMIC
DEVELOPMENT BOARD was
hereunto affixed in the presence of:-

                    /s/ [ILLEGIBLE SIGNATURE]
                    -------------------------
                    Chairman
                                                                   [SEAL]

                    /s/ [ILLEGIBLE SIGNATURE]
                    -------------------------
                    Secretary

<PAGE>   17
                                                                 APPENDIX I

ECONOMIC DEVELOPMENT BOARD
250 North Bridge Road
#24-00 Raffles City Tower
Singapore 179101

Dear Sirs,

NOTICE OF DRAWING
TERM LOAN OF S$90,000,000.00

Pursuant to Clause 5 of the EDB Loan Agreement dated        1998 in respect of
the above Term Loan we hereby give you notice for a Drawing of Singapore
Dollars [ ] (S$    ) on       1998.

We confirm--

     (i)    that the conditions precedent under Clause 3 of the EDB
            Loan Agreement have been complied with in every respect;

     (ii)   that each of the representations and warranties contained
            in Clause 12 of the EDB Loan Agreement are true and accurate in all
            respects as though made on the date of this Notice with reference to
            facts and circumstances presently subsisting and will be true and
            accurate in all respects on the date of the intended Drawing as
            though made on the date of the intended Drawing with reference to
            facts and circumstances then subsisting; and

     (iii)  that as at the date hereof no Event of Default has occurred
            and no event has occurred which, with the giving of notice and/or
            the lapse of time and/or upon you making any necessary determination
            under Clause 15 of the EDB Loan Agreement, might constitute and
            Event of Default, and we undertake that no Event of Default and none
            of the events aforesaid will exist at the date of the intended
            Drawing.

In addition to the above documents kindly let us know if you require copies of
any opinion approval or other documents.

Dated this     day of    19

Yours faithfully

Director/Authorised Signatory

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