Document:

Exhibit 4.5

                               STATS ChipPAC LTD.
                    SUBSTITUTE SHARE PURCHASE AND OPTION PLAN

         1. Purpose of Plan. Pursuant to that certain Agreement and Plan of
Merger and Reorganization, dated as of February 10, 2004 (the "Merger
Agreement"), among ST Assembly Test Services Ltd., a Singapore public company
limited by shares ("STATS"), Camelot Merger, Inc. and ChipPAC, Inc., a Delaware
corporation ("ChipPAC"), ChipPAC will become a wholly owned subsidiary of STATS.
Under the terms of the Merger Agreement, STATS agreed to grant Substitute
Options (as hereinafter defined) in substitution for the Options (as hereinafter
defined) that were outstanding and unexercised immediately prior to the
Effective Time (as defined in the Merger Agreement) on substantially the same
terms in all material respects as were applicable to the Options that were
substituted with the Substitute Options. The Merger Agreement also provides for
the change of the name of the combined company, effective as of the Effective
Time, to "STATS ChipPAC Ltd." This STATS ChipPAC Ltd. Substitute Share Purchase
and Option Plan (the "Plan") of STATS ChipPAC Ltd., a Singapore public company
limited by shares (the "Company"), which is designed to provide for the grant of
Substitute Options to holders of Options in accordance with the terms of the
Merger Agreement, shall not become effective until the Effective Time.

         2. Definitions. The capitalized terms used in the Plan have the
meanings set forth below:

         "ADS" means an American Depositary Share issued pursuant to the deposit
agreement, dated as of February 8, 2001, as may be amended from time to time, by
and among STATS, Citibank, N.A., as depositary, and the holders from time to
time of ADSs (evidenced by American Depositary Receipts). Each ADS represents
the right to receive ten Shares.

         "Board" means the Company's board of directors.

         "ChipPAC" has the meaning ascribed to it in Section 1 hereof.

         "ChipPAC Share" means a share of Class A Common.

         "Class A Common" means the Class A Common Stock, par value $.01 per
share, of ChipPAC.

         "Code" means the Unites States Internal Revenue Code of 1986, as it may
be amended from time to time, and the rules and regulations promulgated
thereunder.

         "Committee" means the committee of the Board that may be designated by
the Board to administer the Plan. The Committee shall be composed of two or more
members as appointed to serve from time to time by the Board. In the absence of
the appointment of any such Committee, any action permitted or required to be
taken hereunder by the Committee shall be deemed to refer to the Board.

         "Company" has the meaning ascribed to it in Section 1 hereof.

         "Effective Time" has the meaning ascribed to it in Section 1 hereof.

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         "ESOP" means the STATS ChipPAC Ltd. Share Option Plan, as may be
amended from time to time.

         "Exchange Ratio" means the numeral 8.7.

         "Fair Market Value" means, as of any date, the value of Shares
determined as follows:

         (i)     If the Shares are listed on any established stock exchange or a
national market system, including, without limitation, The Nasdaq National
Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, the Fair Market
Value shall be the closing sales price for the Shares (or the closing bid, if no
sales were reported) as quoted on such exchange or system for the last market
trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Committee deems reliable;

         (ii)    If the Shares are regularly quoted by a recognized securities
dealer but selling prices are not reported, the Fair Market Value shall be the
mean between the high bid and low asked prices for the Shares on the last market
trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Committee deems reliable; or

         (iii)   In the absence of an established market for the Shares, the
Fair Market Value shall be determined in good faith by the Committee.

         "Former Plan" means the ChipPAC, Inc. 1999 Stock Purchase and Option
Plan.

         "Incentive Stock Option" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code, or a
Substitute Option granted in substitution for an Option that was granted as an
Incentive Stock Option, as applicable given the context.

         "Option" means an option enabling the holder thereof to purchase
ChipPAC Shares from ChipPAC granted pursuant to the terms of the Former Plan
that is outstanding and unexercised immediately prior to the Effective Time,
that has a per Share exercise price that is equal to or greater than the par
value of a Share, after giving effect to the Exchange Ratio and the applicable
currency exchange rate conversion and that is eligible to be substituted with a
Substitute Option pursuant to the provisions of the Plan. Options granted under
the Former Plan may have been granted as Incentive Stock Options or in such
other form, consistent with the Former Plan, as the plan administrator of the
Former Plan may have determined.

         "Plan" means this STATS ChipPAC Ltd. Substitute Share Purchase and
Option Plan, as amended from time to time.

         "Participant" means the holder of an outstanding Substitute Option
granted under the Plan.

         "Plan" has the meaning ascribed to the term in Section 1 hereof.

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         "Share" means an ordinary share of STATS ChipPAC Ltd., par value S$0.25
per share.

         "Subsidiary" means any corporation of which shares of stock having a
majority of the general voting power in electing the board of directors are, at
the time as of which any determination is being made, owned by the Company
either directly or through its Subsidiaries.

         "Substitute Option" means an option granted pursuant to the terms of
the Plan in substitution for an Option and representing the right to receive,
upon exercise thereof, a number of Shares equal to the product of the number of
ChipPAC Shares subject to the Option substituted with the Substitute Option,
multiplied by the Exchange Ratio (rounded down to the nearest whole Share).

         "Substitute Option Notice" means the written or electronic notice that
shall be delivered to a holder of an Option informing the holder that his or her
Option shall be substituted with a Substitute Option and providing information
regarding the number of Shares for which the Substitute Option shall be
exercisable and the exercise price applicable to the Substitute Option. The
Substitute Option Notice shall become part of the agreement evidencing the
Option and shall supersede the applicable terms contained in the notice of grant
and agreement evidencing the grant of the Option entered into with the holder of
the Option, including without limitation, the number of Shares subject, and the
exercise price applicable, to the Option, all as set forth in the Substitute
Option Notice.

         3. Grant of Substitute Options. A holder of an Option that is
outstanding and unexercised immediately prior to the Effective Time shall be
granted a Substitute Option subject to the terms and conditions set forth in
this Section 3. Anything in the Plan to the contrary notwithstanding, the holder
of a Substitute Option may elect to receive ADSs in lieu of Shares upon the
exercise of a Substitute Option, and upon such election, the holder of the
Substitute Option shall receive a number of ADSs equal to the quotient resulting
from dividing the number of Shares subject to the Option for which a Substitute
Option is exercisable, by the number 10 (rounded down to the nearest whole ADS).
The per Share exercise price of a Substitute Option shall be equal to the
quotient (rounded up to the nearest cent) resulting from dividing the per
ChipPAC Share exercise price of the Option substituted with the Substitute
Option, by the Exchange Ratio; provided, however, that the per Share exercise
price of a Substitute Option shall in no event be less than par value of a
Share. The exercise period within which a Substitute Option is exercisable shall
be the same exercise period applicable to the Option substituted with the
Substitute Option; provided, however, that (i) the exercise period applicable to
a Participant who was an employee of ChipPAC or any Subsidiary at the time of
grant of an Option and a Substitute Option shall in no event be greater than 120
months, measured from the date of grant of the Option so substituted and (ii)
that the exercise period applicable to a Participant who was not an employee of
the Company or any Subsidiary at the time of grant of a Substitute Option shall
in no event be greater than 60 months, measured from the date of grant of the
Substitute Option. The Substitute Option shall not be transferable other than by
will or under the laws of descent and distribution. The rate at which a
Substitute Option is exercisable shall be the same rate applicable to the Option
substituted with the Substitute Option. Unless a Participant's employment with
the Company or any Subsidiary is terminated for cause, as defined by applicable
law or the terms of any agreement evidencing any grant of the Option substituted
with

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<PAGE>

the Substitute Option or a contract of employment, a Participant shall have the
right to exercise, in the event of termination of employment, to the extent that
the Participant is otherwise entitled to exercise on the date employment
terminates, for a period of (A) not less than six (6) months from the date of
termination if termination was caused by death or disability and (B) not less
than 30 days from the date of termination if termination was caused by any
reason other than death or disability. Substitute Options granted under the Plan
shall be subject to such terms and conditions and evidenced by agreements as
shall be determined from time to time by the Committee to the extent not
inconsistent with the provisions of the Plan.

         4. [INTENTIONALLY LEFT BLANK]

         5. Administration of the Plan. The Committee shall have the power and
authority to prescribe, amend and rescind rules and procedures governing the
administration of the Plan, including, but not limited to, the full power and
authority (i) to specify and approve the provisions of agreements evidencing any
grant of any Substitute Option, including, without limitation, the method of
exercise, including via written or electronic media, (ii) to interpret the terms
of the Plan, the terms of any Substitute Options granted under the Plan,
consistent with the provisions of the Plan, including, without limitation, the
terms and conditions set forth in Section 3 hereof, and the rules and procedures
established by the Committee governing any such Substitute Options and (iii) to
determine the rights of any person under the Plan, or the meaning of
requirements imposed by the terms of the Plan or any rule or procedure
established by the Committee. Each action of the Committee shall be binding on
all persons. In administering the Plan, the Committee shall provide the
Participants with such financial statements as may be required pursuant to
applicable law.

         6. Limitation on the Aggregate Number of Shares. The number of Shares
issued under the Plan (including the number of Shares with respect to which
Substitute Options may be granted under the Plan (and which may be issued upon
the exercise or payment thereof)) shall not exceed, in the aggregate, 7.2
million Shares, which is an aggregate number that is intended to be equal to or
greater than the product of the aggregate number of ChipPAC Shares subject to
all Options, multiplied by the Exchange Ratio (as such numbers are equitably
adjusted pursuant to Section 9 hereof). If any Substitute Options expire
unexercised or unpaid or are canceled, terminated or forfeited in any manner
without the issuance of Shares or payment thereunder, the Shares with respect to
which such Substitute Options were granted shall become available for issuance
pursuant to options or other awards under the ESOP. In addition, Shares that are
not made subject to Substitute Options hereunder shall become available for
issuance pursuant to options or other awards under the ESOP. Shares to be issued
upon exercise of a Substitute Option may be authorized, but unissued Shares, as
the Committee shall determine.

         7. Incentive Stock Options. All Incentive Stock Options shall comport
with all requirements set forth in Section 422 of the Code. To the extent that
the aggregate Fair Market Value of Shares with respect to which Substitute
Options that are intended to be Incentive Stock Options are exercisable for the
first time by any individual during any calendar year exceeds US$100,000
(measured as of the date the Options substituted with the Substitute Options
were granted), such options shall be treated as options that are not Incentive
Stock Options.

         8. [INTENTIONALLY LEFT BLANK]

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<PAGE>

         9. Adjustment for Change in Capitalization of the Company. In the event
of a reorganization, recapitalization, stock split, stock dividend, combination
of shares, merger, consolidation or other change in the Shares or ADSs, the
Committee shall make appropriate changes in the number and type of shares
authorized by the Plan, the number and type of shares covered by outstanding
Substitute Options and the exercise prices thereof.

         10. Taxes. The Company shall be entitled, if necessary or desirable, to
withhold (or secure payment from the Participant in lieu of withholding) the
amount of any withholding or other tax due from the Company with respect to any
amount payable and/or Shares of ADSs issuable under the Plan, and the Company
may defer such payment or issuance unless indemnified to its satisfaction.

         11. Termination and Amendment. The Committee at any time may suspend or
terminate the Plan and make such additions or amendments as it deems advisable
under the Plan, except that the Committee shall obtain shareholder approval of
any amendment to the Plan to the extent necessary and desirable to comply with
applicable law; provided that, subject to Section 8 hereof, the Committee shall
not change any of the terms of a written agreement with respect to an Option or
Substitute Option between the Company and a Participant without the approval of
the Participant. Unless terminated earlier in accordance with this Section 11,
the Plan shall terminate on the earlier of the tenth anniversary of the date the
Plan becomes effective and the date that each Substitute Option has been
exercised.

         12. Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company at the time that the transactions contemplated by
the Merger Agreement are subject to shareholder approval. Such shareholder
approval shall be obtained in the manner and to the degree required under
applicable laws. The Plan shall not become effective and no Substitute Option
shall be granted under the Plan in the event that the Plan is not approved by
the shareholders of the Company, and in no event prior to the Effective Time.

         13. Governing Law. The validity, construction, interpretation,
administration and effect of the Plan shall be determined in accordance with the
laws of the Republic of Singapore.

                                    * * * * *

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<PAGE>Exhibit 4.3

                                  [STATS LOGO]

                               STATS CHIPPAC LTD.

                                SHARE OPTION PLAN

                             Adopted on 28 May 1999

                 Amended by ordinary resolution approved at the
                 6th Annual General Meeting held on 8 June 2000

           Amended by the Executive Resource & Compensation Committee
                               on 23 October 2001

           Amended by the Executive Resource & Compensation Committee
                               on 28 January 2002

           Amended by the Executive Resource & Compensation Committee
                               on 29 October 2002

                 Amended by ordinary resolution approved at the
                10th Annual General Meeting held on 25 April 2004

                     Amended by ordinary resolution approved
               at the Extraordinary Meeting held on 4 August 2004

                                       1

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                                TABLE OF CONTENTS

                                                                      Page No.
                                                                      --------

SECTION 1.   ESTABLISHMENT AND PURPOSE.                                   4

SECTION 2.   ADMINISTRATION.                                              4

      (a)    Committees of the Board of Directors.                        4

      (b)    Authority of the Board of Directors.                         5

SECTION 3.   ELIGIBILITY.                                                 6

      (a)    General Rule.                                                6

      (b)    Ten Percent Shareholders.                                    6

SECTION 4.   SHARES SUBJECT TO PLAN.                                      6

      (a)    Basic Limitation.                                            6

      (b)    Additional Shares.                                           7

SECTION 5.   TERMS AND CONDITIONS OF OPTIONS.                             7

      (a)    Share Option Agreement.                                      7

      (b)    Number of Shares.                                            7

      (c)    Exercise Price.                                              7

      (d)    Withholding Taxes.                                           8

      (e)    Exercisability.                                              8

      (f)    Change of Control.                                           8

      (g)    Basic Term.                                                  9

      (h)    Nontransferability.                                          9

      (i)    Termination of Service (Except by Death).                    9

      (j)    Leave of Absence.                                           10

      (k)    Death of Optionee.                                          10

      (l)    No Rights as a Shareholder.                                 10

                                       2

<PAGE>

      (m)    Modification, Extension and Assumption of Options.          10

SECTION 6.   PAYMENT FOR SHARES.                                         11

      (a)    General Rule.                                               11

      (b)    Surrender of Shares.                                        11

      (c)    Exercise/Sale.                                              11

      (d)    Exercise/Pledge.                                            11

SECTION 7.   ADJUSTMENT OF SHARES.                                       12

      (a)    General.                                                    12

      (b)    Reservation of Rights.                                      12

SECTION 8.   SECURITIES LAW REQUIREMENTS.                                12

SECTION 9.   NO RETENTION RIGHTS.                                        12

SECTION 10.  DURATION AND AMENDMENTS.                                    13

      (a)    Term of the Plan.                                           13

      (b)    Right to Amend or Terminate the Plan.                       13

      (c)    Effect of Amendment or Termination.                         13

SECTION 11.  DEFINITIONS.                                                13

SECTION 12.  EXECUTION.                                                  17

                                       3

<PAGE>

                                  [STATS LOGO]

                               STATS CHIPPAC LTD.

                                SHARE OPTION PLAN

                             Adopted on 28 May 1999

        Amended by ordinary resolution approved at the 6th Annual Meeting
                              held on 8 June 2000

  Amended by the Executive Resource & Compensation Committee on 23 October 2001

  Amended by the Executive Resource & Compensation Committee on 28 January 2002

  Amended by the Executive Resource & Compensation Committee on 29 October 2002

       Amended by ordinary resolution approved at the 10th Annual General
                         Meeting held on 25 April 2004

      Amended by ordinary resolution approved at the Extraordinary Meeting
                             held on 4 August 2004

SECTION 1. ESTABLISHMENT AND PURPOSE.

          The purpose of the Plan is to offer selected individuals an
opportunity to acquire a proprietary interest in the success of the Company, or
to increase such interest, by exercising Options to purchase Shares. Options
granted under the Plan may include Nonstatutory Options as well as ISOs intended
to qualify under Section 422 of the U.S. Tax Code.

          Capitalized terms are defined in Section 11 hereof.

SECTION 2. ADMINISTRATION.

          (a) Committees of the Board of Directors.

          The Board of Directors shall administer the Plan unless and until the
Board of Directors delegates administration to a Committee, as provided herein.
The Board of Directors may delegate administration of the Plan to one or more
Committees consisting of two or more members of the Board of Directors. If
administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore possessed
by the Board of Directors, including the power to delegate to a subcommittee any
of the administrative powers the Committee is authorized to exercise, subject,
however, to such resolutions, not inconsistent with the provisions of the Plan,
as may be adopted from time to time by the Board of Directors. The Board of
Directors may abolish the Committee at any time and

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<PAGE>

revest in the Board of Directors the administration of the Plan. Any reference
to the Board of Directors in the Plan shall be construed as a reference to the
Committee (if any) to whom the Board of Directors has assigned a particular
function.

          (b) Committee Composition under Section 16 and Section 162(m)

          At such time as the Company is subject to Section 162(m) of the U.S.
Tax Code or an Optionee is subject to Section 16 of the U.S. Exchange Act, in
the discretion of the Board of Directors, a Committee may consist solely of two
or more Outside Directors, in accordance with Section 162(m) of the U.S. Tax
Code, and/or two or more Non-Employee Directors, in accordance with Rule 16b-3.
Notwithstanding the foregoing, the Board of Directors or the Committee may (1)
delegate to a committee of one or more members of the Board of Directors who are
not Outside Directors the authority to grant Options to eligible persons who are
either (a) not then Covered Employees and are not expected to be Covered
Employees at the time of recognition of income resulting from such Option or (b)
not persons with respect to whom the Company wishes to comply with Section
162(m) of the U.S. Tax Code and/or (2) delegate to a committee of one or more
members of the Board of Directors who are not Non-Employee Directors the
authority to grant Options to eligible persons who are not then subject to
Section 16 of the U.S. Exchange Act.

          (c) Authority of the Board of Directors.

          Subject to the provisions of the Plan, the Board of Directors shall
have full authority and discretion to take any actions it deems necessary or
advisable for the administration of the Plan, including, without limitation, to
(i) select Optionees from the individuals eligible to receive Options under the
Plan; (ii) grant Options in accordance with the terms of the Plan; (iii)
determine the terms and conditions of each Option; (iv) specify and approve the
provisions of the Share Option Agreements, including, without limitation, the
method of exercise and delivery of notice thereof, including via written or
electronic media, in connection with their Options; (v) construe and interpret
any Share Option Agreement delivered under the Plan; (vi) prescribe, amend and
rescind rules and procedures relating to the Plan; (vii) employ such legal
counsel, independent auditors and consultants as it deems desirable for the
administration of the Plan and to rely upon any opinion received therefrom;
(viii) vary the terms of Options to take account of tax, securities law and
other regulatory requirements of foreign jurisdictions; (ix) make all legal and
factual determinations; and (x) make all other determinations and take any other
action desirable or necessary to interpret, construe or implement properly the
provisions of the Plan or any Share Option Agreement.

          All decisions, interpretations and other actions of the Board of
Directors shall be final and binding on all Optionees and all persons deriving
their rights from an Optionee.

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<PAGE>

SECTION 3. ELIGIBILITY.

          (a) General Rule.

          Employees, Directors and Consultants shall be eligible for the grant
of Options except as follows:

                (i)  Employees of Affiliated Companies, Directors who are not
          Employees and Consultants shall not be eligible for the grant of ISOs;
          and

               (ii)  Employees, Directors and Consultants, in each case, of
          Affiliated Companies who are residents of the United States shall not
          be eligible for the grant of Options.

          (b) Ten Percent Shareholders.

          An individual who owns more than 10% of the total combined voting
power of all classes of outstanding shares of the Company, its Parent or any of
its Subsidiaries shall not be eligible to be granted ISOs unless (i) the
Exercise Price of the ISO is at least 110% of the Fair Market Value of a Share
on the date of grant and (ii) such ISO by its terms is not exercisable after the
expiration of five years from the date of grant. For purposes of this Subsection
(b), in determining share ownership, the attribution rules of Section 424(d) of
the U.S. Tax Code shall be applied.

          (c) Section 162(m) Limitation.

          Subject to the provisions of Section 7 relating to adjustment upon
change in the Shares, no Employee shall be eligible to be granted an Option
covering more than fifty million (50,000,000) Shares during any calendar year.
This Section 3(c) shall not apply at such times that the Company is not subject
to Section 162(m) of the U.S. Tax Code or such other date required by Section
162(m) of the U.S. Tax Code and the rules and regulations promulgated
thereunder.

SECTION 4. SHARES SUBJECT TO PLAN.

          (a) Basic Limitation.

          Shares offered under the Plan may be authorized but unissued Shares.
Subject to adjustment as provided pursuant to Section 7 hereof, the maximum
aggregate number of Shares that may be issued under this Plan shall not exceed
(i) 245 million Shares, plus (ii) any unissued Shares subject to any option or
other awards or rights under the Existing Plans that expire unexercised or are
otherwise cancelled as a result of a termination of those options or other
awards or rights under the Existing Plans or the non-issuance of options or
other awards or rights under the Existing Plans. The aggregate number of Shares
that are subject to Options outstanding at any time under the Plan shall not
exceed the number of Shares that then remain

                                       6

<PAGE>

available for issuance. The Company, during the term of the Plan, shall at all
times reserve and keep available sufficient Shares to satisfy the requirement of
the Plan.

          (b) Additional Shares.

          For purposes of determining the number of Shares that remain available
for issuance under Section 4(a) hereof, the following Shares shall be added back
to the Plan Limit and again be available for the purposes of the Plan and all
other share incentive and option schemes approved by the Board of Directors and
contracts of employment:

                (i)  The number of Shares tendered in accordance with applicable
          laws to pay the exercise price of an Option;

               (ii)  The number of Shares acquired by the Company under Section
          6(b) below in satisfaction of any tax withholding requirement; and

              (iii)  The number of Shares subject to an Option that expire
          unexercised or that are cancelled or otherwise terminated.

SECTION 5. TERMS AND CONDITIONS OF OPTIONS.

          (a) Share Option Agreement.

          Each grant of an Option under the Plan shall be evidenced by a Share
Option Agreement between the Optionee and the Company. Such Option shall be
subject to all applicable terms and conditions of the Plan and may be subject to
any other terms and conditions which are not inconsistent with the Plan and
which the Board of Directors deems appropriate for inclusion in a Share Option
Agreement. The provisions of the various Share Option Agreements entered into
under the Plan need not be identical.

          (b) Number of Shares.

          Each Share Option Agreement shall specify the number of Shares that
are subject to the Option and shall provide for the adjustment of such number in
accordance with Section 7. The Share Option Agreement shall also specify whether
the Option is an ISO or a Nonstatutory Option.

          (c) Exercise Price.

          Each Share Option Agreement shall specify the Exercise Price. The
Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of
a Share on the date of grant, and a higher percentage may be required by Section
3(b) hereof. In no event shall the Exercise Price of an Option be less than the
par value of Share on the date of grant. Subject to the preceding two sentences,
the Exercise Price under any Option shall be determined by the Board of
Directors at its sole discretion. The Exercise Price shall be payable in a form
described in Section 6 hereof.

                                       7

<PAGE>

          (d) Expenses and Withholding Taxes.

          As a condition to the exercise of an Option, the Optionee shall make
such arrangements as the Board of Directors may require for the satisfaction of
any withholding tax obligations and such other bank-related transactional costs
that may arise in connection with such Option exercise or both of the foregoing.
The Board of Directors may require any Optionee to remit to the Company, prior
to exercise of an Option, an amount sufficient to satisfy any applicable tax
withholding requirements or such other bank-related transactional costs
associated with the Option exercise or both of the foregoing. The Board of
Directors may permit such Optionee to satisfy, in whole or in part, such
obligations to remit the tax withholdings, pay the bank-related transactional
costs associated with the Option exercise or both of the foregoing by directing
the Company to withhold Shares that would otherwise be received by such Optionee
to satisfy the minimum statutory withholding rates for any applicable tax
withholding purposes, any bank-related transactional costs associated with the
Option exercise or both of the foregoing, as applicable, in accordance with all
applicable laws and pursuant to such rules as the Board of Directors may
establish from time to time. The Company shall also have the right to deduct
from all cash payments made to an Optionee (whether or not such payment is made
in connection with the exercise of an Option) any applicable taxes required to
be withheld with respect to such payments, or any bank-related transactional
costs associated with the exercise of an Option, in accordance with all
applicable laws.

          (e) Exercisability.

          Each Share Option Agreement shall specify the date when all or any
installment of the Option is to become exercisable. The exercisability
provisions of any Share Option Agreement shall be determined by the Board of
Directors at its sole discretion.

          (f) Change of Control.

          In the event of a Change of Control, in addition to any action
required or authorized by the terms of a Share Option Agreement, the Board of
Directors may, in its sole discretion unless otherwise provided in a Share
Option Agreement, take any or all or any combination of the following actions as
a result, or in anticipation, of any such event:

                (i)  accelerate the time period for purposes of vesting in, or
          realizing gain from, any outstanding Option made pursuant to this
          Plan;

               (ii)  provide for the continuation of any outstanding Options by
          the Company (if the Company is the survivor corporation);

              (iii)  provide for the assumption of outstanding Options by the
          surviving corporation or its parent;

               (iv)  provide for the substitution by the surviving corporation
          or its parent of options with substantially the same terms as
          outstanding Options;

                (v)  cancel each outstanding Option but only after payment to
          the Optionee of an amount in cash or cash equivalents equal to (A) the
          Fair Market

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<PAGE>

          Value of the Shares subject to such Option at the time of the merger
          or consolidation minus (B) the Exercise Price of the Shares subject
          to such Option; or

               (vi)  make adjustments or modifications to outstanding Options as
          the Board of Directors deems appropriate to maintain and protect the
          rights and interests of Optionees following the Change of Control.

          Any such action approved by the Board of Directors shall be conclusive
and binding on the Company and all Optionees.

          (g) Basic Term.

          Subject to this Section 5(g), the Share Option Agreement shall specify
the term of the Option. The term of an Option granted to an Employee shall not
exceed 10 years from the date of grant, and a shorter term may be required by
Section 3(b) hereof. The term of an Option granted to a person who is not an
Employee shall not exceed 5 years from the date of grant. Subject to the
preceding two sentences, the Board of Directors at its sole discretion shall
determine when an Option is to expire.

          (h) Nontransferability.

          No Option shall be transferable by the Optionee other than to an
Optionee's personal representative on the death of that Optionee. An Option may
be exercised during the lifetime of the Optionee only by the Optionee or by the
Optionee's guardian or legal representative or such other person who has the
management of the Optionee's estate. No Option or interest therein may be
transferred, assigned, pledged or hypothecated by the Optionee or by the
Optionee's guardian or legal representative or such person who has the
management of the Optionee's estate, or during the Optionee's lifetime, whether
by operation of law or otherwise, or be made subject to execution, attachment or
similar process.

          (i) Termination of Service (Except by Death).

          If an Optionee's Service terminates for any reason other than the
Optionee's death, then the Optionee's Options shall expire on the earliest of
the following occasions:

                (i)  The expiration date determined pursuant to Subsection (g)
          above;

               (ii)  The date 30 days after the termination of the Optionee's
          Service for any reason other than Disability, or such later date as
          the Board of Directors may determine; or

              (iii)  The date 12 months after the termination of the Optionee's
          Service by reason of Disability, or such later date as the Board of
          Directors may determine.

The Optionee or his guardian or legal representative or such other person who
has the management of the Optionee's estate may exercise all or part of the
Optionee's Options at any

                                       9

<PAGE>

time before the expiration of such Options under the preceding sentence but only
to the extent that such Options had become exercisable before the Optionee's
Service terminated (or became exercisable as a result of the termination) unless
otherwise determined by the Board of Directors in its sole discretion. The
balance of such Options shall lapse when the Optionee's Service terminates. In
the event that the Optionee dies after the termination of the Optionee's Service
but before the expiration of the Optionee's Options, all or part of such Options
may be exercised (prior to expiration) by the Optionee's personal
representatives, but only to the extent that such Options had become exercisable
before the Optionee's Service terminated (or became exercisable as a result of
the termination).

          (j) Leave of Absence.

          For purposes of Subsection (i) above, Service shall be deemed to
continue while the Optionee is on a bona fide leave of absence, if such leave
was approved by the Company in writing and if continued crediting of Service for
this purpose is expressly required by the terms of such leave or by applicable
law (as determined by the Company).

          (k) Death of Optionee.

          If an Optionee dies while the Optionee is in Service, then the
Optionee's Options shall expire on the earlier of the following dates:

                (i)  The expiration date determined pursuant to Section 5(g)
          hereof; or

               (ii)  The date 12 months after the Optionee's death or such later
          date as the Board of Directors may determine.

All or part of the Optionee's Options may be exercised at any time before the
expiration of such Options under the preceding sentence by the Optionee's
personal representatives, but only to the extent that such Options had become
exercisable before the Optionee's death or became exercisable as a result of the
death unless otherwise determined by the Board of Directors in its sole
discretion. The balance of such Options shall lapse when the Optionee dies.

          (l) No Rights as a Shareholder.

          An Optionee, or his guardian, legal representative or such other
person who has the management of the Optionee's estate, or the personal
representatives of an Optionee in the event of the death of an Optionee, shall
have no rights as a shareholder with respect to any Shares covered by the
Optionee's Option until such person has been allotted and issued such Shares by
filing a notice of exercise and paying the Exercise Price pursuant to the terms
of such Option.

          (m) Modification, Extension and Assumption of Options.

          Within the limitations of the Plan, the Board of Directors may modify,
extend or assume outstanding Options or may accept the cancellation of
outstanding Options (whether granted by the Company or another issuer) in return
for the grant of new Options for the same or a different number of Shares and at
the same or a different Exercise Price. The foregoing

                                     10

<PAGE>

notwithstanding, no modification of an Option shall, without the consent of the
Optionee, impair the Optionee's rights or increase the Optionee's obligations
under such Option.

SECTION 6. PAYMENT FOR SHARES.

          (a) General Rule.

          The entire Exercise Price of Shares issued under the Plan shall be
payable in cash or cash equivalents at the time when the Options are exercised,
except as otherwise provided in this Section 6.

          (b) Surrender of Shares.

          To the extent that a Share Option Agreement so provides and provided
that the relevant requirements of the Companies Act, Chapter 50 of Singapore and
the requirements of all other prevailing laws and regulations have been complied
with, all or any part of the Exercise Price may be paid by surrendering Shares
that are already owned by the Optionee. Such Shares shall be valued at their
Fair Market Value on the date when the Option is exercised. The Optionee shall
not surrender Shares in payment of the Exercise Price if such action would cause
the Company to recognize compensation expense (or additional compensation
expense) with respect to the Option for financial reporting purposes.

          (c) Exercise/Sale.

          To the extent that a Share Option Agreement so provides, and in
accordance with the rules and procedures established by the Board of Directors
for this purpose and subject to applicable law, an Option may also be exercised
through "cashless exercise" procedures approved by the Board of Directors
involving a broker or dealer approved by the Board of Directors that affords an
Optionee the opportunity to sell immediately some or all of the Shares
underlying the exercised portion of the Option in order to generate sufficient
cash to pay the Exercise Price and/or to satisfy withholding tax obligations
related to the Option.

          (d) Exercise/Pledge.

          To the extent that a Share Option Agreement so provides, and in
accordance with the rules and procedures established by the Board of Directors
for this purpose and subject to applicable law, payment of the Exercise Price
may be made all or in part by the delivery of an irrevocable direction to pledge
Shares to a securities broker or lender approved by the Board of Directors, as
security for a loan, and to deliver sufficient cash to pay the Exercise Price
and/or to satisfy withholding tax obligations related to the Option.

                                       11

<PAGE>

SECTION 7. ADJUSTMENT OF SHARES.

          (a) General.

          In the event of a subdivision of the outstanding Shares, a declaration
of a dividend payable in Shares, a declaration of an extraordinary dividend
payable in a form other than Shares in an amount that has a material effect on
the Fair Market Value of the Shares, a consolidation of the outstanding Shares
into a lesser number of Shares, a recapitalization, a reclassification,
reorganization, merger, consolidation, combination or a similar occurrence, the
Board of Directors shall make appropriate adjustments in one or more of (i) the
number of Shares available for future grants under Section 4 hereof, (ii) the
number of Shares covered by each outstanding Option or (iii) the Exercise Price
under each outstanding Option.

          (b) Reservation of Rights.

          Except as provided in this Section 7, an Optionee shall have no rights
by reason of (i) any subdivision or consolidation of shares of any class, (ii)
the payment of any dividend or (iii) any other increase or decrease in the
number of shares of any class. Any issuance by the Company of shares of any
class, or securities convertible into shares of any class, shall not affect, and
no adjustment by reason thereof shall be made with respect to, the number or
Exercise Price of Shares subject to an Option. The grant of an Option pursuant
to the Plan shall not affect in any way the right or power of the Company to
make adjustments, reclassifications, reorganizations or changes of its capital
or business structure, to merge or consolidate or to dissolve, liquidate, sell
or transfer all or any part of its business or assets.

SECTION 8. SECURITIES LAW REQUIREMENTS.

          Shares shall not be issued under the Plan unless the issuance and
delivery of such Shares comply with (or are exempt from) all applicable
requirements of law, including (without limitation) the U.S. Securities Act, all
other securities laws and regulations, and the regulations of any exchange or
other securities market on which the Company's securities may then be traded.

SECTION 9. NO RETENTION RIGHTS.

          Nothing in the Plan or in any right or Option granted under the Plan
shall confer upon the Optionee any right to continue in Service for any period
of specific duration or interfere with or otherwise restrict in any way the
rights of the Company (or any Parent or Subsidiary employing or retaining the
Optionee) or of the Optionee, which rights are hereby expressly reserved by
each, to terminate his or her Service at any time and for any reason, with or
without cause.

                                       12

<PAGE>

SECTION 10. DURATION AND AMENDMENTS.

          (a) Term of the Plan.

          The Plan, as set forth herein, shall become effective on the date of
its approval by the Company's shareholders. The Plan shall terminate
automatically 10 years after the date of the later of the Plan's adoption by the
Board or Directors or approval by the Company's shareholders of an increase in
the Plan Limit, and may be terminated on any earlier date pursuant to Section
10(b) hereof.

          (b) Right to Amend or Terminate the Plan.

          The Board of Directors may amend, suspend or terminate the Plan at any
time and for any reason; provided, however, that any amendment of the Plan which
increases the number of Shares available for issuance under the Plan (except as
provided in Section 7 hereof), or which materially changes the class of persons
who are eligible for the grant of ISOs, shall be subject to the approval of the
Company's shareholders. Shareholder approval shall not be required for any other
amendment of the Plan.

          (c) Effect of Amendment or Termination.

          No Option shall be granted and no Shares shall be issued under the
Plan after the termination thereof, except upon exercise of an Option granted
prior to such termination. The termination of the Plan, or any amendment
thereof, shall not affect any Option previously granted under the Plan.

SECTION 11. CONTRACTS (RIGHTS OF THIRD PARTIES) ACT.

          Except as expressly provided in this Plan, no person other than the
Company or an Optionee shall have any rights to enforce any provision of this
Plan under the Contracts (Rights of Third Parties) Act, Chapter 53B of
Singapore.

SECTION 12. DEFINITIONS.

          (a) "Affiliated Company" shall mean any corporation (other than the
Company, a Parent or Subsidiary) in an unbroken chain of corporations beginning
with a Parent, if each of the corporations other than the last corporation in
the unbroken chain owns shares possessing more than 50% of the total combined
voting power of all classes of shares in one of the other corporations in such
chain.

          (b) "Board of Directors" shall mean the Board of Directors of the
Company, as constituted from time to time or, if a Committee has been appointed,
such Committee.

          (c) "Change of Control" of the Company shall mean any of the following
events:

                                       13

<PAGE>

                (i)  the acquisition by any "person" as defined in Section 3(a)
          (9) of the U.S. Exchange Act and as used in Sections 13(d) or 13(e)
          thereof, including a "group" as defined in Section 13(d) of the U.S.
          Exchange Act, of beneficial ownership (within the meaning of Rule
          13d-3 promulgated under the U.S. Exchange Act) of 30% or more of the
          combined voting power of the Company's then outstanding securities in
          a single or series of transactions, but shall not include (i) any such
          acquisition by any employee benefit plan of the Company, or any person
          or entity organized, appointed or established by the Company for or
          pursuant to the terms of any such employee benefit plan and (ii) any
          person who beneficially owns 30% or more of the combined voting power
          of the Company's then outstanding securities as of August 4, 2004;

               (ii)  the consummation after approval by the shareholders of the
          Company of a reorganization, merger or consolidation of the Company
          with or into another entity or any other corporate transaction, if
          persons who were not shareholders of the Company immediately prior to
          such merger, consolidation or other reorganization own directly or
          indirectly immediately after such reorganization, merger,
          consolidation or other corporate transaction more than 50% of the
          combined voting power of the Company's then outstanding securities of
          each of (A) the continuing or surviving entity and (B) any direct or
          indirect parent corporation of such continuing or surviving entity in
          substantially the same proportions as their ownership, immediately
          prior to such reorganization, merger, consolidation or other corporate
          transaction, of the voting securities of the Company;

              (iii)  during any period of two consecutive years (not including
          any period prior to August 4, 2004), individuals who at the beginning
          of such period constituted the Board of Directors and any new
          directors, whose election by the Board of Directors or nomination for
          election by the Company's stockholders was approved by a vote of at
          least three-fourths of the directors then still in office who either
          were directors at the beginning of the period or whose election or
          nomination for election was previously so approved, cease for any
          reason to constitute a majority thereof; or

               (iv)  the sale, transfer or other disposition of all or
          substantially all of the Company's assets.

          A transaction shall not constitute a Change in Control if its sole
purpose is to create a holding company that will be owned in substantially the
same proportions by the persons who held the Company's securities immediately
before such transaction.

          (d) "Committee" shall mean a committee appointed by the Board of
Directors, as described in Section 2(a).

          (e) "Company" shall mean STATS ChipPAC Ltd., a Singapore public
company limited by shares.

                                       14

<PAGE>

          (f) "Consultant" shall mean a person who performs bona fide services
for the Company, a Parent or a Subsidiary or an Affiliated Company as a
consultant or advisor, excluding Employees and Directors.

          (g) "Covered Employee" shall mean the chief executive officer and the
four (4) other highest compensated Officers for whom total compensation is
required to be reported to shareholders of the Company under the U.S. Exchange
Act, as determined for purposes of Section 162(m) of the U.S. Tax Code.

          (h) "Director" shall mean a member of the Board of Directors.

          (i) "Disability" shall mean, for purposes of an ISO, the permanent and
total disability of an Optionee within the meaning of Section 22(e)(3) of the
U.S. Tax Code, and for purposes of a Nonstatutory Option, the inability of the
Optionee to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment.

          (j) "Employee" shall mean any individual who is an employee of the
Company, a Parent or a Subsidiary or an Affiliated Company.

          (k) "Exercise Price" shall mean the amount for which one Share may be
purchased upon exercise of an Option, as specified by the Board of Directors in
the applicable Share Option Agreement.

          (l) "Existing Plans" shall mean the existing share option plans of the
Company, including, without limitation, the STATS ChipPAC Ltd. Substitute Equity
Incentive Plan and STATS ChipPAC Ltd. Substitute Share Purchase and Option Plan.

          (m) "Fair Market Value" shall mean the fair market value of a Share,
determined as follows:

                (i)  if the Shares are listed on any established stock exchange
          or national market system, the Fair Market Value shall be the mean of
          the high and low sales prices for a Share (or the mean of the high and
          low bids, if no sales were reported) as quoted on such exchange or
          system on the date of the grant, as reported on The Straits Times or
          such other source as the Board of Directors deems reliable; or

               (ii)  in the absence of an established stock exchange market or
          quotation system for the Shares, the Fair Market Value shall be
          determined by the Board of Directors in good faith. Such determination
          shall be conclusive and binding on all persons.

          (n) "ISO" shall mean an Option intended to qualify as an employee
incentive stock option, as described in Section 422(b) of the U.S. Tax Code.

          (o) "Non-Employee Director" shall mean a Director who either (i) is
not a current Employee or Officer or an officer of the Company's Parent or a
Subsidiary, does not receive compensation (directly or indirectly) from the
Company or its Parent or a Subsidiary for services

                                       15

<PAGE>

rendered as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of the Regulation S-K promulgated pursuant to the
U.S. Securities Act ("Regulation S-K")), does not possess an interest in any
other transaction as to which the disclosure would be required under Item 404(a)
of Regulation S-K and is not engaged in a business relationship as to which
disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a "non-employee director" for purposes of Rule 16b-3.

          (p) "Nonstatutory Option" shall mean an Option that is not an ISO.

          (q) "Option" shall mean an ISO or Nonstatutory Option granted under
the Plan and entitling the holder to purchase Shares.

          (r) "Officer" shall mean, at such time as an Optionee is subject to
Section 16 of the U.S. Exchange Act, a person who is an officer of the Company
within the meaning of Section 16 of the U.S. Exchange Act and the rules and
regulations promulgated thereunder, and at such other times, any director or
secretary or a person employed in an executive capacity.

          (s) "Optionee" shall mean an individual who holds an Option.

          (t) "Outside Director" shall mean a Director who either (i) is not a
current employee of the Company or an "affiliated corporation" (within the
meaning of Treasury Regulations promulgated under Section 162(m) of the U.S. Tax
Code), is not a former employee of the Company or an "affiliated corporation"
receiving compensation for prior services (other than benefits under a tax
qualified pension plan), was not an Officer or an officer of an "affiliated
corporation" at any time and is not currently receiving direct or indirect
compensation from the Company or an "affiliated corporation" for services in any
capacity other than as a Director or (ii) is otherwise considered an "outside
director" for purposes of Section 162(m) of the U.S. Tax Code.

          (u) "Parent" shall mean any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns shares possessing more than 50% of the
total combined voting power of all classes of shares in one of the other
corporations in such chain. A corporation that attains the status of a Parent on
a date after the adoption of the Plan shall be considered a Parent commencing as
of such date.

          (v) "Plan" shall mean this STATS ChipPAC Ltd. Share Option Plan, as
amended from time to time.

          (w) "Plan Limit" shall mean the total number of Shares that may be
issued under this Plan pursuant to Section 4(a) hereof.

          (x) "Rule 16b-3" shall mean Rule 16b-3 promulgated under the U.S.
Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

          (y) "Service" shall mean service as an Employee, Outside Director, or
Consultant.

                                       16

<PAGE>

          (z) "Share" shall mean one ordinary share, of par value Singapore
$0.25, in the capital of the Company, as adjusted in accordance with Section 7
hereof (if applicable).

          (aa) "Share Option Agreement" shall mean the agreement between the
Company and an Optionee that contains the terms, conditions and restrictions
pertaining to the Optionee's Option.

          (bb) "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns shares
possessing more than 50% of the total combined voting power of all classes of
shares in one of the other corporations in such chain. A corporation that
attains the status of a Subsidiary on a date after the adoption of the Plan
shall be considered a Subsidiary commencing as of such date.

          (cc) "U.S. Exchange Act" shall mean the Securities Exchange Act of
1934 of the United States of America, as amended, and the rules and regulations
promulgated thereunder.

          (dd) "U.S. Securities Act" shall mean the Securities Act of 1933 of
the United States of America, as amended, and the rules and regulations
promulgated thereunder.

          (ee) "U.S. Tax Code" shall mean the Internal Revenue Code of 1986 of
the United States of America, as amended, and the rulings and regulations
(including proposed regulations) promulgated thereunder.

SECTION 13. EXECUTION.

          To record the adoption of the Plan by the Company's shareholders, the
Company has caused its authorized officer to execute the same.

                                                 STATS CHIPPAC LTD.

                                                 By:      Tan Lay Koon
                                                          --------------------
                                                 Title:   President & CEO
                                                          --------------------

                                       17

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