Document:

Unassociated Document

    MORTGAGE
      LOAN PURCHASE AGREEMENT

     

    THIS
      MORTGAGE LOAN PURCHASE AGREEMENT dated as of March 30, 2006 by and between
      FIRST
      HORIZON HOME LOAN CORPORATION, a Kansas corporation (the “Seller”), and FIRST
      HORIZON ASSET SECURITIES INC. (the “Purchaser”). 

     

    WHEREAS,
      the Seller owns certain Mortgage Loans (as hereinafter defined) which Mortgage
      Loans are more particularly listed and described in Schedule
      A
      attached
      hereto and made a part hereof.

     

    WHEREAS,
      the Seller and the Purchaser wish to set forth the terms pursuant to which
      the
      Mortgage Loans, excluding the servicing rights thereto, are to be sold by the
      Seller to the Purchaser.

     

    WHEREAS,
      the Seller will simultaneously transfer the servicing rights for the Mortgage
      Loans to First Tennessee Mortgage Services, Inc. (“FTMSI”) pursuant to the
      Servicing Rights Transfer and Subservicing Agreement (as hereinafter
      defined).

     

    WHEREAS,
      the Purchaser will engage FTMSI to service the Mortgage Loans pursuant to the
      Servicing Agreement (as hereinafter defined).

     

    NOW,
      THEREFORE, in consideration of the foregoing, other good and valuable
      consideration, and the mutual terms and covenants contained herein, the parties
      hereto agree as follows:

     

     

    ARTICLE
      I

    Definitions

     

    Agreement:
      This
      Mortgage Loan Purchase Agreement, as the same may be amended, supplemented
      or
      otherwise modified from time to time in accordance with the terms
      hereof.

     

    Alternative
      Title Product:
      Any one
      of the following: (i) Lien Protection Insurance issued by Integrated Loan
      Services or ATM Corporation of America, (ii) a Mortgage Lien Report issued
      by
      EPN Solutions/ACRAnet, (iii) a Property Plus Report issued by Rapid Refinance
      Service through SharperLending.com, or (iv) such other alternative title
      insurance product that the Seller utilizes in connection with its then current
      underwriting criteria.

    

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, or (ii) a day on which banking
      institutions in the City of Dallas, the State of Texas or New York City is
      located are authorized or obligated by law or executive order to be
      closed.

     

    Closing
      Date:
      March
      30, 2006

     

    Code:
      The
      Internal Revenue Code of 1986, including any successor or amendatory
      provisions.

     

    Cooperative
      Corporation:
      The
      entity that holds title (fee or an acceptable leasehold estate) to the real
      property and improvements constituting the Cooperative Property and which
      governs the Cooperative Property, which Cooperative Corporation must qualify
      as
      a Cooperative Housing Corporation under Section 216 of the Code.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Coop
      Shares:
      Shares
      issued by a Cooperative Corporation.

     

    Cooperative
      Loan:
      Any
      Mortgage Loan secured by Coop Shares and a Proprietary Lease.

     

    Cooperative
      Property:
      The
      real property and improvements owned by the Cooperative Corporation, including
      the allocation of individual dwelling units to the holders of the Coop Shares
      of
      the Cooperative Corporation.

     

    Cooperative
      Unit:
      A
      single family dwelling located in a Cooperative Property.

     

    Custodian:
      First
      Tennessee Bank National Association, and its successors and assigns, as
      custodian under the Custodial Agreement dated as of March 30, 2006 by and among
      The Bank of New York, as trustee, First Horizon Home Loan Corporation, as master
      servicer, and the Custodian.

     

    Cut-Off
      Date:
      March
      1, 2006.

     

    Cut-off
      Date Principal Balance:
      As to
      any Mortgage Loan, the Stated Principal Balance thereof as of the close of
      business on the Cut-off Date.

     

    Debt
      Service Reduction:
      With
      respect to any Mortgage Loan, a reduction by a court of competent jurisdiction
      in a proceeding under the Bankruptcy Code in the Scheduled Payment for such
      Mortgage Loan which became final and non-appealable, except such a reduction
      resulting from a Deficient Valuation or any reduction that results in a
      permanent forgiveness of principal.

     

    Deficient
      Valuation:
      With
      respect to any Mortgage Loan, a valuation by a court of competent jurisdiction
      of the Mortgaged Property in an amount less than the then-outstanding
      indebtedness under the Mortgage Loan, or any reduction in the amount of
      principal to be paid in connection with any Scheduled Payment that results
      in a
      permanent forgiveness of principal, which valuation or reduction results from
      an
      order of such court which is final and non-appealable in a proceeding under
      the
      United States Bankruptcy Reform Act of 1978, as amended.

     

    Delay
      Delivery Mortgage Loans:
      The
      Mortgage Loans for which all or a portion of a related Mortgage File is not
      delivered to the Trustee or to the Custodian on its behalf on the Closing Date.
      The number of Delay Delivery Mortgage Loans shall not exceed 25% of the
      aggregate number of Mortgage Loans as of the Closing Date.

     

    Deleted
      Mortgage Loan:
      As
      defined in Section 4.1(c) hereof.

     

    Determination
      Date:
      The
      earlier of (i) the third Business Day after the 15th day of each month, and
      (ii)
      the second Business Day prior to the 25th
      day of
      each month, or if such 25th
      day is
      not a Business Day, the next succeeding Business Day.

     

    GAAP:
      Generally accepted accounting principles as in effect from time to time in
      the
      United States of America.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Insurance
      Proceeds:
      Proceeds paid by an insurer pursuant to any insurance policy, including all
      riders and endorsements thereto in effect, including any replacement policy
      or
      policies, in each case other than any amount included in such Insurance Proceeds
      in respect of expenses covered by such insurance policy.

     

    Liquidation
      Proceeds:
      Amounts, including Insurance Proceeds, received in connection with the partial
      or complete liquidation of defaulted Mortgage Loans, whether through trustee’s
      sale, foreclosure sale or otherwise or amounts received in connection with
      any
      condemnation or partial release of a Mortgaged Property.

     

    MERS:
      Mortgage Electronic Registration Systems, Inc., a corporation organized and
      existing under the laws of the State of Delaware, or any successor
      thereto.

     

    MERS
      Mortgage Loan:
      Any
      Mortgage Loan registered with MERS on the MERS System.

     

    MERS®
      System:
      The
      system of recording transfers of mortgages electronically maintained by
      MERS.

     

    MIN:
      The
      Mortgage Identification Number for any MERS Mortgage Loan.

     

    MOM
      Loan:
      Any
      Mortgage Loan as to which MERS is acting as mortgagee, solely as nominee for
      the
      originator of such Mortgage Loan and its successors and assigns.

     

    Mortgage:
      The
      mortgage, deed of trust or other instrument creating a first lien on the
      property securing a Mortgage Note.

     

    Mortgage
      File:
      The
      mortgage documents listed in Section 3.1 pertaining to a particular Mortgage
      Loan and any additional documents required to be added to the Mortgage File
      pursuant to this Agreement.

     

    Mortgage
      Loans:
      The
      mortgage loans transferred, sold and conveyed by the Seller to the Purchaser,
      pursuant to this Agreement.

     

    Mortgage
      Loan Purchase Price:
      With
      respect to any Mortgage Loan required to be purchased by the Seller pursuant
      to
      Section 4.1(c) hereof, an amount equal to the sum of (i) 100% of the unpaid
      principal balance of the Mortgage Loan on the date of such purchase, and (ii)
      accrued interest thereon at the applicable Mortgage Rate from the date through
      which interest was last paid by the Mortgagor to the first day in the month
      in
      which the Mortgage Loan Purchase Price is to be distributed to the Purchaser
      or
      its designees.

     

    Mortgage
      Note:
      The
      original executed note or other evidence of indebtedness evidencing the
      indebtedness of a Mortgagor under a Mortgage Loan.

     

    Mortgage
      Rate:
      The
      annual rate of interest borne by a Mortgage Note from time to time, net of
      any
      insurance premium charged by the mortgagee to obtain or maintain any primary
      insurance policy.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Mortgaged
      Property:
      The
      underlying property securing a Mortgage Loan, which, with respect to a
      Cooperative Loan, is the related Coop Shares and Proprietary Lease.

     

    Mortgagor:
      The
      obligor(s) on a Mortgage Note.

     

    Principal
      Prepayment:
      Any
      payment of principal by a Mortgagor on a Mortgage Loan that is received in
      advance of its scheduled Due Date and is not accompanied by an amount
      representing scheduled interest due on any date or dates in any month or months
      subsequent to the month of prepayment.

     

    Proprietary
      Lease:
      With
      respect to any Cooperative Unit, a lease or occupancy agreement between a
      Cooperative Corporation and a holder of related Coop Shares.

     

    Purchase
      Price:
      $[
      ]

     

    Purchaser:
      First
      Horizon Asset Securities, Inc., in its capacity as purchaser of the Mortgage
      Loans from the Seller pursuant to this Agreement.

     

    Recognition
      Agreement:
      With
      respect to any Cooperative Loan, an agreement between the Cooperative
      Corporation and the originator of such Mortgage Loan which establishes the
      rights of such originator in the Cooperative Property.

     

    Scheduled
      Payment:
      The
      scheduled monthly payment on a Mortgage Loan due on the first day of the month
      allocable to principal and/or interest on such Mortgage Loan which, unless
      otherwise specified herein, shall give effect to any related Debt Service
      Reduction and any Deficient Valuation that affects the amount of the monthly
      payment due on such Mortgage Loan.

     

    Security
      Agreement: The
      security agreement with respect to a Cooperative Loan.

     

    Seller:
      First
      Horizon Home Loan Corporation, a Kansas corporation, and its successors and
      assigns, in its capacity as seller of the Mortgage Loans.

     

    Servicing
      Agreement:
      The
      servicing agreement, dated as of November 26, 2002 by and between First
      Horizon Asset Securities, Inc., and its assigns, as owner, and First Tennessee
      Mortgage Services, Inc., as servicer.

     

    Servicing
      Rights Transfer and Subservicing Agreement:
      The
      servicing rights transfer and subservicing agreement, dated as of November
      26,
      2002 by and between First Horizon Home Loan Corporation, as transferor and
      subservicer, and First Tennessee Mortgage Services, Inc., as transferee and
      servicer.

     

    Stated
      Principal Balance:
      As to
      any Mortgage Loan, the unpaid principal balance of such Mortgage Loan as
      specified in the amortization schedule at the time relating thereto (before
      any
      adjustment to such amortization schedule by reason of any moratorium or similar
      waiver or grace period) after giving effect to any previous partial Principal
      Prepayments and Liquidation Proceeds allocable to principal (other than with
      respect to any Liquidated Mortgage Loan) and to the payment of principal due
      on
      such date and irrespective of any delinquency in payment by the related
      Mortgagor.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Substitute
      Mortgage Loan:
      A
      Mortgage Loan substituted by the Seller for a Deleted Mortgage Loan which must,
      on the date of such substitution, (i) have a Stated Principal Balance, after
      deduction of the principal portion of the Scheduled Payment due in the month
      of
      substitution, not in excess of, and not more than 10% less than the Stated
      Principal Balance of the Deleted Mortgage Loan; (ii) have a Mortgage Rate not
      lower than the Mortgage Rate of the Deleted Mortgage Loan; (iii) have a maximum
      mortgage rate not more than 1% per annum higher or lower than the maximum
      mortgage rate of the Deleted Mortgage Loan; (iv) have a minimum mortgage rate
      specified in its related Mortgage Note not more than 1% per annum higher or
      lower than the minimum mortgage rate of the Deleted Mortgage Loan; (v) have
      the
      same mortgage index, reset period and periodic rate as the Deleted Mortgage
      Loan
      and a gross margin not more than 1% per annum higher or lower than that of
      the
      Deleted Mortgage Loan (vi) be accruing interest at a rate no lower than and
      not
      more than 1% per annum higher than, that of the Deleted Mortgage Loan; (vii)
      have a loan-to-value ratio no higher than that of the Deleted Mortgage Loan;
      (viii) have a remaining term to maturity no greater than (and not more than
      one
      year less than that of) the Deleted Mortgage Loan; (ix) not be a Cooperative
      Loan unless the Deleted Mortgage Loan was a Cooperative Loan and (x) comply
      with
      each representation and warranty set forth in Schedule
      B
      hereto.

     

    Trustee:
      The
      Bank of New York and its successors and, if a successor trustee is appointed
      hereunder, such successor.

     

     

    ARTICLE
      II

    Purchase
      and Sale

     

    Section
      2.1  Purchase
      Price.
      In
      consideration for the payment to it of the Purchase Price on the Closing Date,
      pursuant to written instructions delivered by the Seller to the Purchaser on
      the
      Closing Date, the Seller does hereby transfer, sell and convey to the Purchaser
      on the Closing Date, but with effect from the Cut-off Date, (i) all right,
      title
      and interest of the Seller in the Mortgage Loans, excluding the servicing rights
      thereto, and all property securing such Mortgage Loans, including all interest
      and principal received or receivable by the Seller with respect to the Mortgage
      Loans on or after the Cut-off Date and all interest and principal payments
      on
      the Mortgage Loans received on or prior to the Cut-off Date in respect of
      installments of interest and principal due thereafter, but not including
      payments of principal and interest due and payable on the Mortgage Loans on
      or
      before the Cut-off Date, and (ii) all proceeds from the foregoing. Items (i)
      and
      (ii) in the preceding sentence are herein referred to collectively as “Mortgage
      Assets.”

     

    Section
      2.2  Timing.
      The
      sale of the Mortgage Assets hereunder shall take place on the Closing
      Date.

     

     

    ARTICLE
      III

    Conveyance
      and Delivery

     

    Section
      3.1  Delivery
      of Mortgage Files.
      In
      connection with the transfer and assignment set forth in Section 2.1 above,
      the
      Seller has delivered or caused to be delivered to the Trustee or to the
      Custodian on its behalf (or, in the case of the Delay Delivery Mortgage Loans,
      will deliver or cause to be delivered to the Trustee or to the Custodian on
      its
      behalf within thirty (30) days following the Closing Date) the following
      documents or instruments with respect to each Mortgage Loan so assigned
      (collectively, the “Mortgage Files”):

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	(a)  	
            (1)the
              original Mortgage Note endorsed by manual or facsimile signature in
              blank
              in the following form: “Pay to the order of ________________, without
              recourse,” with all intervening endorsements showing a complete chain of
              endorsement from the originator to the Person endorsing the Mortgage
              Note
              (each such endorsement being sufficient to transfer all right, title
              and
              interest of the party so endorsing, as noteholder or assignee thereof,
              in
              and to that Mortgage Note); or

             

            
              (2)  with
                respect to any Lost Mortgage Note, a lost note affidavit from the
                Seller
                stating that the original Mortgage Note was lost or destroyed, together
                with a copy of such Mortgage Note;

            

          

     

     

    	(b)  	
            except
              as provided below and for each Mortgage Loan that is not a MERS Mortgage
              Loan, the original recorded Mortgage or a copy of such Mortgage certified
              by the Seller as being a true and complete copy of the Mortgage, and
              in
              the case of each MERS Mortgage Loan, the original Mortgage, noting
              the
              presence of the MIN of the Mortgage Loans and either language indicating
              that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM
              Loan or
              if the Mortgage Loan was not a MOM Loan at origination, the original
              Mortgage and the assignment thereof to MERS, with evidence of recording
              indicated thereon, or a copy of the Mortgage certified by the public
              recording office in which such Mortgage has been
              recorded;

          

     

    	(c)  	
            a
              duly executed assignment of the Mortgage in blank (which may be included
              in a blanket assignment or assignments), together with, except as provided
              below, all interim recorded assignments of such mortgage (each such
              assignment, when duly and validly completed, to be in recordable form
              and
              sufficient to effect the assignment of and transfer to the assignee
              thereof, under the Mortgage to which the assignment relates); provided
              that, if the related Mortgage has not been returned from the applicable
              public recording office, such assignment of the Mortgage may exclude
              the
              information to be provided by the recording
              office;

          

     

    	(d)  	
            the
              original or copies of each assumption, modification, written assurance
              or
              substitution agreement, if any;

          

     

    	(e)  	
            either
              the original or duplicate original title policy (including all riders
              thereto) with respect to the related Mortgaged Property, if available,
              provided that the title policy (including all riders thereto) will
              be
              delivered as soon as it becomes available, and if the title policy
              is not
              available, and to the extent required pursuant to the second paragraph
              below or otherwise in connection with the rating of the Certificates,
              a
              written commitment or interim binder or preliminary report of the title
              issued by the title insurance or escrow company with respect to the
              Mortgaged Property, or, in lieu thereof, an Alternative Title Product;
              and

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	(f)  	
            in
              the case of a Cooperative Loan, the originals of the following documents
              or instruments:

          

     

    (1)  The
      Coop
      Shares, together with a stock power in blank;

     

    (2)  The
      executed Security Agreement;

     

    (3)  The
      executed Proprietary Lease;

     

    (4)  The
      executed Recognition Agreement;

     

    (5)  The
      executed UCC-1 financing statement with evidence of recording thereon which
      have
      been filed in all places required to perfect the Seller’s interest in the Coop
      Shares and the Proprietary Lease; and

     

    (6)  Executed
      UCC-3 financing statements or other appropriate UCC financing statements
      required by state law, evidencing a complete and unbroken line from the
      mortgagee to the Trustee with evidence of recording thereon (or in a form
      suitable for recordation).

     

    In
      the
      event that in connection with any Mortgage Loan that is not a MERS Mortgage
      Loan
      the Seller cannot deliver (i) the original recorded Mortgage or (ii) all interim
      recorded assignments satisfying the requirements of clause (b) or (c) above,
      respectively, concurrently with the execution and delivery hereof because such
      document or documents have not been returned from the applicable public
      recording office, the Seller shall promptly deliver or cause to be delivered
      to
      the Trustee or the Custodian on its behalf such original Mortgage or such
      interim assignment, as the case may be, with evidence of recording indicated
      thereon upon receipt thereof from the public recording office, or a copy
      thereof, certified, if appropriate, by the relevant recording office, but in
      no
      event shall any such delivery of the original Mortgage and each such interim
      assignment or a copy thereof, certified, if appropriate, by the relevant
      recording office, be made later than one year following the Closing Date;
      provided, however, in the event the Seller is unable to deliver or cause to
      be
      delivered by such date each Mortgage and each such interim assignment by reason
      of the fact that any such documents have not been returned by the appropriate
      recording office, or, in the case of each such interim assignment, because
      the
      related Mortgage has not been returned by the appropriate recording office,
      the
      Seller shall deliver or cause to be delivered such documents to the Trustee
      or
      the Custodian on its behalf as promptly as possible upon receipt thereof and,
      in
      any event, within 720 days following the Closing Date; provided, further,
      however, that the Seller shall not be required to provide an original or
      duplicate lender’s title policy (together with all riders thereto) if the Seller
      delivers an Alternative Title Product in lieu thereof. The Seller shall forward
      or cause to be forwarded to the Trustee or the Custodian on its behalf (i)
      from
      time to time additional original documents evidencing an assumption or
      modification of a Mortgage Loan and (ii) any other documents required to be
      delivered by the Seller to the Trustee. In the event that the original Mortgage
      is not delivered and in connection with the payment in full of the related
      Mortgage Loan and the public recording office requires the presentation of
      a
“lost instruments affidavit and indemnity” or any equivalent document, because
      only a copy of the Mortgage can be delivered with the instrument of satisfaction
      or reconveyance, the Seller shall execute and deliver or cause to be executed
      and delivered such a document to the public recording office. In the case where
      a public recording office retains the original recorded Mortgage or in the
      case
      where a Mortgage is lost after recordation in a public recording office, the
      Seller shall deliver or cause to be delivered to the Trustee or the Custodian
      on
      its behalf a copy of such Mortgage certified by such public recording office
      to
      be a true and complete copy of the original recorded Mortgage.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    In
      addition, in the event that in connection with any Mortgage Loan the Seller
      cannot deliver or cause to be delivered the original or duplicate original
      lender’s title policy (together with all riders thereto), satisfying the
      requirements of clause (v) above, concurrently with the execution and delivery
      hereof because the related Mortgage has not been returned from the applicable
      public recording office, the Seller shall promptly deliver or cause to be
      delivered to the Trustee or the Custodian on its behalf such original or
      duplicate original lender’s title policy (together with all riders thereto) upon
      receipt thereof from the applicable title insurer, but in no event shall any
      such delivery of the original or duplicate original lender’s title policy be
      made later than one year following the Closing Date; provided, however, in
      the
      event the Seller is unable to deliver or cause to be delivered by such date
      the
      original or duplicate original lender’s title policy (together with all riders
      thereto) because the related Mortgage has not been returned by the appropriate
      recording office, the Seller shall deliver or cause to be delivered such
      documents to the Trustee or the Custodian on its behalf as promptly as possible
      upon receipt thereof and, in any event, within 720 days following the Closing
      Date. 

     

    Notwithstanding
      anything to the contrary in this Agreement, within thirty days after the Closing
      Date, the Seller shall either (i) deliver or cause to be delivered to the
      Trustee or the Custodian on its behalf the Mortgage File as required pursuant
      to
      this Section 3.1 for each Delay Delivery Mortgage Loan or (ii) (A) substitute
      or
      cause to be substituted a Substitute Mortgage Loan for the Delay Delivery
      Mortgage Loan or (B) repurchase or cause to be repurchased the Delay Delivery
      Mortgage Loan, which substitution or repurchase shall be accomplished in the
      manner and subject to the conditions set forth in Section 4.1 (treating each
      Delay Delivery Mortgage Loan as a Deleted Mortgage Loan for purposes of such
      Section 4.1), provided, however, that if the Seller fails to deliver a Mortgage
      File for any Delay Delivery Mortgage Loan within the thirty-day period provided
      in the prior sentence, the Seller shall use its best reasonable efforts to
      effect or cause to be effected a substitution, rather than a repurchase of,
      such
      Deleted Mortgage Loan and provided further that the cure period provided for
      in
      Section 4.1 hereof shall not apply to the initial delivery of the Mortgage
      File
      for such Delay Delivery Mortgage Loan, but rather the Seller shall have five
      (5)
      Business Days to cure or cause to be cured such failure to deliver.

     

     

    ARTICLE
      IV

    Representations
      and Warranties

     

    Section
      4.1  Representations
      and Warranties of the Seller.
      (a) The
      Seller hereby represents and warrants to the Purchaser, as of the date of
      execution and delivery hereof, that:

     

    (1)  The
      Seller is duly organized as a Kansas corporation and is validly existing and
      in
      good standing under the laws of the State of Kansas and is duly authorized
      and
      qualified to transact any and all business contemplated by this Agreement to
      be
      conducted by the Seller in any state in which a Mortgaged Property is located
      or
      is otherwise not required under applicable law to effect such qualification
      and,
      in any event, is in compliance with the doing business laws of any such state,
      to the extent necessary to ensure its ability to enforce each Mortgage Loan
      and
      to perform any of its other obligations under this Agreement in accordance
      with
      the terms thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (2)  The
      Seller has the full corporate power and authority to sell each Mortgage Loan,
      and to execute, deliver and perform, and to enter into and consummate the
      transactions contemplated by this Agreement and has duly authorized by all
      necessary corporate action on the part of the Seller the execution, delivery
      and
      performance of this Agreement; and this Agreement, assuming the due
      authorization, execution and delivery thereof by the other parties thereto,
      constitutes a legal, valid and binding obligation of the Seller, enforceable
      against the Seller in accordance with its terms, except that (a) the
      enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights generally and
      (b) the remedy of specific performance and injunctive and other forms of
      equitable relief may be subject to equitable defenses and to the discretion
      of
      the court before which any proceeding therefor may be brought.

     

    (3)  The
      execution and delivery of this Agreement by the Seller, the sale of the Mortgage
      Loans by the Seller under this Agreement, the consummation of any other of
      the
      transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms thereof are in the ordinary course of business of
      the
      Seller and will not (a) result in a material breach of any term or provision
      of
      the charter or by-laws of the Seller or (b) materially conflict with, result
      in
      a material breach, violation or acceleration of, or result in a material default
      under, the terms of any other material agreement or instrument to which the
      Seller is a party or by which it may be bound, or (c) constitute a material
      violation of any statute, order or regulation applicable to the Seller of any
      court, regulatory body, administrative agency or governmental body having
      jurisdiction over the Seller; and the Seller is not in breach or violation
      of
      any material indenture or other material agreement or instrument, or in
      violation of any statute, order or regulation of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over it which
      breach or violation may materially impair the Seller’s ability to perform or
      meet any of its obligations under this Agreement.

     

    (4)  No
      litigation is pending or, to the best of the Seller’s knowledge, threatened
      against the Seller that would prohibit the execution or delivery of, or
      performance under, this Agreement by the Seller.

     

    (5)  The
      Seller is a member of MERS in good standing, and will comply in all material
      respects with the rules and procedures of MERS in connection with the servicing
      of the MERS Mortgage Loans for as long as such Mortgage Loans are registered
      with MERS.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	(b)  	
            The
              Seller hereby makes the representations and warranties set forth in
              Schedule
              B
              hereto to the Purchaser, as of the Closing Date, or if so specified
              therein, as of the Cut-off Date.

          

     

    	(c)  	
             Upon
              discovery by either of the parties hereto of a breach of a representation
              or warranty made pursuant to Schedule
              B
              hereto that materially and adversely affects the interests of the
              Purchaser in any Mortgage Loan, the party discovering such breach shall
              give prompt notice thereof to the other party. The Seller hereby covenants
              that within 90 days of the earlier of its discovery or its receipt
              of
              written notice from the Purchaser of a breach of any representation
              or
              warranty made pursuant to Schedule
              B
              hereto which materially and adversely affects the interests of the
              Purchaser in any Mortgage Loan, it shall cure such breach in all material
              respects, and if such breach is not so cured, shall, (i) if such 90-day
              period expires prior to the second anniversary of the Closing Date,
              remove
              such Mortgage Loan (a “Deleted Mortgage Loan”) from the pools of mortgages
              listed on Schedule
              B
              hereto and substitute in its place a Substitute Mortgage Loan, in the
              manner and subject to the conditions set forth in this Section; or
              (ii)
              repurchase the affected Mortgage Loan or Mortgage Loans from the Purchaser
              at the Mortgage Loan Purchase Price in the manner set forth below.
              With
              respect to the representations and warranties described in this Section
              which are made to the best of the Seller’s knowledge, if it is discovered
              by either the Seller or the Purchaser that the substance of such
              representation and warranty is inaccurate and such inaccuracy materially
              and adversely affects the value of the related Mortgage Loan or the
              interests of the Purchaser therein, notwithstanding the Seller’s lack of
              knowledge with respect to the substance of such representation or
              warranty, such inaccuracy shall be deemed a breach of the applicable
              representation or warranty.

          

     

    With
      respect to any Substitute Mortgage Loan or Loans, the Seller shall deliver
      to
      the Trustee or to the Custodian on its behalf the Mortgage Note, the Mortgage,
      the related assignment of the Mortgage, and such other documents and agreements
      as are required by Section 3.1, with the Mortgage Note endorsed and the Mortgage
      assigned as required by Section 3.1. No substitution is permitted to be made
      in
      any calendar month after the Determination Date for such month. Scheduled
      Payments due with respect to Substitute Mortgage Loans in the month of
      substitution will be retained by the Seller. Upon such substitution, the
      Substitute Mortgage Loan or Loans shall be subject to the terms of this
      Agreement in all respects, and the Seller shall be deemed to have made with
      respect to such Substitute Mortgage Loan or Loans, as of the date of
      substitution, the representations and warranties made pursuant to Schedule
      B
      hereto
      with respect to such Mortgage Loan. 

     

    It
      is
      understood and agreed that the obligation under this Agreement of the Seller
      to
      cure, repurchase or replace any Mortgage Loan as to which a breach has occurred
      and is continuing shall constitute the sole remedy against the Seller respecting
      such breach available to the Purchaser on its behalf.

     

    The
      representations and warranties contained in this Agreement shall not be
      construed as a warranty or guaranty by the Seller as to the future payments
      by
      any Mortgagor.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 4.1 shall survive the sale of the Mortgage Loans to the Purchaser
      hereunder.

     

     

    ARTICLE
      V

    Miscellaneous

     

    Section
      5.1  Transfer
      Intended as Sale.
      It is
      the express intent of the parties hereto that the conveyance of the Mortgage
      Loans by the Seller to the Purchaser be, and be construed as, an absolute sale
      thereof in accordance with GAAP and for regulatory purposes. It is, further,
      not
      the intention of the parties that such conveyances be deemed a pledge thereof
      by
      the Seller to the Purchaser. However, in the event that, notwithstanding the
      intent of the parties, the Mortgage Loans are held to be the property of the
      Seller or the Purchaser, respectively, or if for any other reason this Agreement
      is held or deemed to create a security interest in such assets, then (i) this
      Agreement shall be deemed to be a security agreement within the meaning of
      the
      Uniform Commercial Code of the State of Texas and (ii) the conveyance of the
      Mortgage Loans provided for in this Agreement shall be deemed to be an
      assignment and a grant by the Seller to the Purchaser of a security interest
      in
      all of the Mortgage Loans, whether now owned or hereafter acquired.

     

    The
      Seller and the Purchaser shall, to the extent consistent with this Agreement,
      take such actions as may be necessary to ensure that, if this Agreement were
      deemed to create a security interest in the Mortgage Loans, such security
      interest would be deemed to be a perfected security interest of first priority
      under applicable law and will be maintained as such throughout the term of
      the
      Agreement. The Seller and the Purchaser shall arrange for filing any Uniform
      Commercial Code continuation statements in connection with any security interest
      granted hereby.

     

    Section
      5.2  Seller’s
      Consent to Assignment»

     

    .
      The
      Seller hereby acknowledges the Purchaser’s right to assign, transfer and convey
      all of the Purchaser’s rights under this Agreement to a third party and that the
      representations and warranties made by the Seller to the Purchaser pursuant
      to
      this Agreement will, in the case of such assignment, transfer and conveyance,
      be
      for the benefit of such third party. The Seller hereby consents to such
      assignment, transfer and conveyance.

     

    Section
      5.3  Specific
      Performance.
      Either
      party or its assignees may enforce specific performance of this
      Agreement.

     

    Section
      5.4  Notices.
      All
      notices, demands and requests that may be given or that are required to be
      given
      hereunder shall be sent by United States certified mail, postage prepaid, return
      receipt requested, to the parties at their respective addresses as
      follows:

     

    If
      to

    
      	
            	the
              Purchaser: 	
              4000
                Horizon Way

              
                Irving,
                  Texas 75063

                Attn:
                  Larry P. Cole

              

            

    

    

    
      	
            	If
              to the Seller: 	
              4000
                Horizon Way

              Irving,
                Texas 75063

              Attn:
                Larry P. Cole

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Section
      5.5  Choice
      of Law.
      This
      Agreement shall be construed in accordance with and governed by the substantive
      laws of the State of Texas applicable to agreements made and to be performed
      in
      the State of Texas and the obligations, rights and remedies of the parties
      hereto shall be determined in accordance with such laws. 

     

    

    [remainder
      of page intentionally left blank]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Purchaser and the Seller have caused their names to be
      signed hereto by their respective officers thereunto duly authorized as of
      the
      30th day of March, 2006.

     

    
      	 	 	 
	 	FIRST
              HORIZON HOME
              LOAN CORPORATION, as Seller
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Terry
              McCoy
	 	Executive
              Vice
              President

      	 	 	
               

            
	 	FIRST
              HORIZON
              ASSET SECURITIES INC., as Purchaser
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Alfred
              Chang
	 	Vice
              President

    

     

     

    
      
        
          Mortgage
            Loan Purchase Agreement - 2006-FA2 Signature Page 

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    SCHEDULE
      A

     

    [Available
      Upon Request From Trustee]

     

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    SCHEDULE
      B

     

    Representations
      and Warranties as to the Mortgage Loans

     

    First
      Horizon Home Loan Corporation (the “Seller”) hereby makes the representations
      and warranties set forth in this Schedule
      B
      on which
      First Horizon Asset Securities Inc. (the “Purchaser”) relies in accepting the
      Mortgage Loans. Such representations and warranties speak as of the execution
      and delivery of the Mortgage Loan Purchase Agreement, dated as of March 30,
      2006
      (the “MLPA”), between First Horizon Home Loan Corporation, as seller, and the
      Purchaser and as of the Closing Date, or if so specified herein, as of the
      Cut-off Date or date of origination of the Mortgage Loans, but shall survive
      the
      sale, transfer, and assignment of the Mortgage Loans to the Purchaser and any
      subsequent sale, transfer and assignment by the Purchaser to a third party.
      Capitalized terms used but not otherwise defined in this Schedule
      B
      shall
      have the meanings ascribed thereto in the MLPA or the Pooling and Servicing
      Agreement, dated as of March 1, 2006, between First Horizon Asset Securities
      Inc., as depositor, First Horizon Home Loan Corporation, as master servicer,
      and
      The Bank of New York, as trustee.

     

    	(1)  	
            The
              information set forth on Schedule
              A
              to
              the MLPA, with respect to each Mortgage Loan is true and correct in
              all
              material respects as of the Closing Date.

          

     

    	(2)  	
            Each
              Mortgage is a valid and enforceable first lien on the Mortgaged Property
              subject only to (a) the lien of nondelinquent current real property
              taxes
              and assessments and liens or interests arising under or as a result
              of any
              federal, state or local law, regulation or ordinance relating to hazardous
              wastes or hazardous substances and, if the related Mortgaged Property
              is a
              unit in a condominium project or Planned Unit Development, any lien
              for
              common charges permitted by statute or homeowner association fees,
              (b)
              covenants, conditions and restrictions, rights of way, easements and
              other
              matters of public record as of the date of recording of such Mortgage,
              such exceptions appearing of record being generally acceptable to mortgage
              lending institutions in the area wherein the related Mortgaged Property
              is
              located or specifically reflected in the appraisal made in connection
              with
              the origination of the related Mortgage Loan, and (c) other matters
              to
              which like properties are commonly subject which do not materially
              interfere with the benefits of the security intended to be provided
              by
              such Mortgage.

          

     

    	(3)  	
            Immediately
              prior to the assignment of the Mortgage Loans to the Purchaser, the
              Seller
              had good title to, and was the sole owner of, each Mortgage Loan free
              and
              clear of any pledge, lien, encumbrance or security interest and had
              full
              right and authority, subject to no interest or participation of, or
              agreement with, any other party, to sell and assign the same pursuant
              to
              this Agreement.

          

     

    	(4)  	
            As
              of the date of origination of each Mortgage Loan, there was no delinquent
              tax or assessment lien against the related Mortgaged
              Property.

          

     

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    	(5)  	
            There
              is no valid offset, defense or counterclaim to any Mortgage Note or
              Mortgage, including the obligation of the Mortgagor to pay the unpaid
              principal of or interest on such Mortgage
              Note.

          

     

    	(6)  	
            There
              are no mechanics’ liens or claims for work, labor or material affecting
              any Mortgaged Property which are or may be a lien prior to, or equal
              with,
              the lien of such Mortgage, except those which are insured against by
              the
              title insurance policy referred to in item (11)
              below.

          

     

    	(7)  	
            To
              the best of the Seller’s knowledge, no Mortgaged Property has been
              materially damaged by water, fire, earthquake, windstorm, flood, tornado
              or similar casualty (excluding casualty from the presence of hazardous
              wastes or hazardous substances, as to which the Seller makes no
              representation) so as to affect adversely the value of the related
              Mortgaged Property as security for such Mortgage Loan. With respect
              to the
              representations and warranties contained within this item (7) that
              are
              made to the knowledge or the best knowledge of the Seller or as to
              which
              the Seller has no knowledge, if it is discovered that the substance
              of any
              such representation and warranty is inaccurate and the inaccuracy
              materially and adversely affects the value of the related Mortgage
              Loan,
              or the interest therein of the Purchaser, then notwithstanding the
              Seller’s lack of knowledge with respect to the substance of such
              representation and warranty being inaccurate at the time the
              representation and warranty was made, such inaccuracy shall be deemed
              a
              breach of the applicable representation and warranty and the Seller
              shall
              take such action described in Section 4.1(c) of this Agreement in respect
              of such Mortgage Loan.

          

     

    	(8)  	
            Each
              Mortgage Loan at origination complied in all material respects with
              applicable local, state and federal laws, including, without limitation,
              usury, equal credit opportunity, real estate settlement procedures,
              truth-in-lending and disclosure laws and specifically applicable predatory
              and abusive lending laws, or any noncompliance does not have a material
              adverse effect on the value of the related Mortgage
              Loan.

          

     

    	(9)  	
            No
              Mortgage Loan is a “high cost loan” as defined by the specific applicable
              predatory and abusive lending laws.

          

     

    	(10)  	
            Except
              as reflected in a written document contained in the related Mortgage
              File,
              the Seller has not modified the Mortgage in any material respect;
              satisfied, cancelled or subordinated such Mortgage in whole or in part;
              released the related Mortgaged Property in whole or in part from the
              lien
              of such Mortgage; or executed any instrument of release, cancellation,
              modification or satisfaction with respect
              thereto.

          

     

    	(11)  	
            A
              lender’s policy of title insurance together with a condominium endorsement
              and extended coverage endorsement, if applicable, in an amount at least
              equal to the Cut-off Date Principal Balance of each such Mortgage Loan
              or
              a commitment (binder) to issue the same was effective on the date of
              the
              origination of each Mortgage Loan, each such policy is valid and remains
              in full force and effect, or, in lieu thereof, an Alternative Title
              Product.

          

     

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    	(12)  	
            To
              the best of the Seller’s knowledge, all of the improvements which were
              included for the purpose of determining the appraised value of the
              Mortgaged Property lie wholly within the boundaries and building
              restriction lines of such property, and no improvements on adjoining
              properties encroach upon the Mortgaged Property, unless such failure
              to be
              wholly within such boundaries and restriction lines or such encroachment,
              as the case may be, does not have a material effect on the value of
              such
              Mortgaged Property.

          

     

    	(13)  	
            To
              the best of the Seller’s knowledge, as of the date of origination of each
              Mortgage Loan, no improvement located on or being part of the Mortgaged
              Property is in violation of any applicable zoning law or regulation
              unless
              such violation would not have a material adverse effect on the value
              of
              the related Mortgaged Property. To the best of the Seller’s knowledge, all
              inspections, licenses and certificates required to be made or issued
              with
              respect to all occupied portions of the Mortgaged Property and, with
              respect to the use and occupancy of the same, including but not limited
              to
              certificates of occupancy and fire underwriting certificates, have
              been
              made or obtained from the appropriate authorities, unless the lack
              thereof
              would not have a material adverse effect on the value of such Mortgaged
              Property.

          

     

    	(14)  	
            The
              Mortgage Note and the related Mortgage are genuine, and each is the
              legal,
              valid and binding obligation of the maker thereof, enforceable in
              accordance with its terms and under applicable
              law.

          

     

    	(15)  	
            The
              proceeds of the Mortgage Loans have been fully disbursed and there
              is no
              requirement for future advances
              thereunder.

          

     

    	(16)  	
            The
              related Mortgage contains customary and enforceable provisions which
              render the rights and remedies of the holder thereof adequate for the
              realization against the Mortgaged Property of the benefits of the
              security, including, (i) in the case of a Mortgage designated as a
              deed of
              trust, by trustee’s sale, and (ii) otherwise by judicial
              foreclosure.

          

     

    	(17)  	
            With
              respect to each Mortgage constituting a deed of trust, a trustee, duly
              qualified under applicable law to serve as such, has been properly
              designated and currently so serves and is named in such Mortgage, and
              no
              fees or expenses are or will become payable by the holder of the Mortgage
              to the trustee under the deed of trust, except in connection with a
              trustee’s sale after default by the
              Mortgagor.

          

     

    	(18)  	
            As
              of the Closing Date, the improvements upon each Mortgaged Property
              are
              covered by a valid and existing hazard insurance policy with a generally
              acceptable carrier that provides for fire and extended coverage and
              coverage for such other hazards as are customarily required by
              institutional single family mortgage lenders in the area where the
              Mortgaged Property is located, and the Seller has received no notice
              that
              any premiums due and payable thereon have not been paid; the Mortgage
              obligates the Mortgagor thereunder to maintain all such insurance
              including flood insurance at the Mortgagor’s cost and expense. Anything to
              the contrary in this item (18) notwithstanding, no breach of this item
              (18) shall be deemed to give rise to any obligation of the Seller to
              repurchase or substitute for such affected Mortgage Loan or Loans so
              long
              as the Seller maintains a blanket policy.

          

     

    
      
         

      

      
        B-3

        
          

        

      

      
         

      

    

    	(19)  	
            If
              at the time of origination of each Mortgage Loan, the related Mortgaged
              Property was in an area then identified in the Federal Register by
              the
              Federal Emergency Management Agency as having special flood hazards,
              a
              flood insurance policy in a form meeting the then-current requirements
              of
              the Flood Insurance Administration is in effect with respect to such
              Mortgaged Property with a generally acceptable
              carrier.

          

     

    	(20)  	
            To
              the best of the Seller’s knowledge, there is no proceeding pending or
              threatened for the total or partial condemnation of any Mortgaged
              Property, nor is such a proceeding currently
              occurring.

          

     

    	(21)  	
            To
              best of the Seller’s knowledge, there is no material event which, with the
              passage of time or with notice and the expiration of any grace or cure
              period, would constitute a material non-monetary default, breach,
              violation or event of acceleration under the Mortgage or the related
              Mortgage Note; and the Seller has not waived any material non-monetary
              default, breach, violation or event of
              acceleration.

          

     

    	(22)  	
            Any
              leasehold estate securing a Mortgage Loan has a stated term at least
              as
              long as the term of the related Mortgage
              Loan.

          

     

    	(23)  	
            Each
              Mortgage Loan was selected from among the outstanding fixed-rate one-
              to
              four-family mortgage loans in the Seller’s portfolio at the Closing Date
              as to which the representations and warranties made with respect to
              the
              Mortgage Loans set forth in this Schedule
              B
              can be made. No such selection was made in a manner intended to adversely
              affect the interests of the
              Certificateholders.

          

     

    	(24)  	
            The
              Mortgage Loans provide for the full amortization of the amount financed
              over a series of monthly payments.

          

     

    	(25)  	
            At
              origination, substantially all of the Mortgage Loans in Pool I and
              Pool II
              had stated terms to maturity of 30 years and 15 years,
              respectively.

          

     

    	(26)  	
            Scheduled
              monthly payments made by the Mortgagors on the Mortgage Loans either
              earlier or later than their Due Dates will not affect the amortization
              schedule or the relative application of the payments to principal and
              interest.

          

     

    	(27)  	
            The
              Mortgagors may prepay all of the Mortgage Loans at any time without
              penalty.

          

     

    
      
         

      

      
        B-4

        
          

        

      

      
         

      

    

    	(28)  	
            Approximately
              23.29% of the Mortgage Loans in Pool I and approximately 16.41% of
              the
              Mortgage Loans in Pool II are jumbo mortgage loans that have Stated
              Principal Balances at origination that exceed the then applicable
              limitations for purchase by Fannie Mae and Freddie
              Mac.

          

     

    	(29)  	
            Each
              Mortgage Loan in Pool I and Pool II was originated on or after January
              26,
              2005 and January 10, 2006, respectively.

          

     

    	(30)  	
            The
              latest stated maturity date of any Mortgage Loan in Pool I is April
              1,
              2036, and the earliest is March 1, 2031. The latest stated maturity
              date
              of any Mortgage Loan in Pool II is March 1, 2021, and the earliest
              is
              February 1, 2021. 

          

     

    	(31)  	
            No
              Mortgage Loan was delinquent more than 30 days as of the Cut-off
              Date.

          

     

    	(32)  	
            No
              Mortgage Loan had a Loan-to-Value Ratio at origination of more than
              95%.
              Generally, each Mortgage Loan with a Loan-to-Value Ratio at origination
              of
              greater than 80% is covered by a Primary Insurance Policy issued by
              a
              mortgage insurance company that is acceptable to Fannie Mae or Freddie
              Mac.

          

     

    	(33)  	
            Each
              Mortgage Loan constitutes a “qualified mortgage” within the meaning of
              Section 860G(a)(3) of the Code.

          

     

    	(34)  	
            No
              Mortgage Loan is a “high cost loan” as defined by the specific applicable
              local, state or federal predatory and abusive lending laws. In addition,
              no Mortgage Loan is a “High Cost Loan” or a “Covered Loan”, as applicable
              (as such terms are defined in the then current Standard & Poor’s
              LEVELSâ
              Glossary which is now Version 5.6c Revised, Appendix E) and no Mortgage
              Loan originated on or after October 1, 2002 through March 6, 2003 is
              governed by the Georgia Fair Lending Act.

          

     

    	(35)  	
            Appraisal
              form 1004 or form 2055 with an interior inspection for first lien mortgage
              loans has been obtained for all related mortgaged properties, other
              than
              condominiums, investment properties, two to four unit properties and
              exempt properties, for which appraisal form 1004 or form 2055 has not
              been
              obtained.

          

     

    Appraisal
      form 704, 2065 or 2055 with an exterior only inspection for junior lien
      mortgages combined with first lien mortgages (including home equity lines of
      credit) has been obtained for all related mortgaged properties, other than
      condominiums, investment properties, two to four unit properties and exempt
      properties, for which appraisal form 1004 or form 2055 has not been obtained.
      Appraisal form 704, 2065 or 2055 with an exterior only inspection for all other
      junior lien mortgages has been obtained for all related mortgaged properties,
      other than those related mortgaged properties that qualify for an Automated
      Valuation Model.

     

    
      
         

      

      
        B-5EX-4.1 Fitfh Supplemental Indenture dated Apr 4 06

 

EXHIBIT 4.1

EXECUTION COPY

 

 

CHARTERED SEMICONDUCTOR MANUFACTURING LTD

AND

THE BANK OF NEW YORK

Trustee

$300,000,000

6.25% Senior Notes due 2013

FIFTH SUPPLEMENTAL INDENTURE

Dated as of April 4, 2006

TO

INDENTURE

Dated as of April 2, 2001

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE ONE

DEFINITIONS

	Section 1.1
	 	Relation to Base Indenture.	 	 	1	 
	Section 1.2
	 	Trustee.	 	 	1	 
	Section 1.3
	 	Definitions.	 	 	2	 
	Section 1.4
	 	Rules of Construction.	 	 	7	 
	Section 1.5
	 	Acts of Holders.	 	 	7	 
	Section 1.6
	 	Notices, etc., to Trustee and
Company.	 	 	8	 
	Section 1.7
	 	Notice to Holders; Waiver.	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE TWO

FORM AND TERMS OF THE SENIOR NOTES

	Section 2.1
	 	Terms of the Senior Notes.	 	 	9	 
	Section 2.2
	 	Form and Dating.	 	 	11	 
	Section 2.3
	 	Payment of Interest; Interest
Rights Preserved.	 	 	12	 
	Section 2.4
	 	Depository and Paying Agent for
Senior Notes.	 	 	13	 
	Section 2.5
	 	Calculations.	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE THREE

ADDITIONAL REDEMPTION PROVISIONS

	Section 3.1
	 	Redemption at Option of the Company.	 	 	13	 
	Section 3.2
	 	Repurchase at Option of Holders.	 	 	14	 
	Section 3.3
	 	Purchase of Senior Notes.	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE FOUR

DEFAULTS AND REMEDIES WITH RESPECT TO THE SENIOR NOTES

	Section 4.1
	 	Events of Default.	 	 	17	 
	Section 4.2
	 	Acceleration of Maturity;
Rescission and Annulment.	 	 	18	 
	Section 4.3
	 	Collection of Indebtedness and
Suits for Enforcement by Trustee.	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE FIVE

COVENANTS

	Section 5.1
	 	Consolidation, Merger, Conveyance,
Transfer or Lease.	 	 	19	 
	Section 5.2
	 	Negative Pledge.	 	 	20	 
	Section 5.3
	 	Payment of Principal, Interest and
Additional Amounts.	 	 	22	 
	Section 5.4
	 	Maintenance of Office or Agency.	 	 	23	 
	Section 5.5
	 	Reports to Holders.	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE SIX

MISCELLANEOUS

	Section 6.1
	 	Effect of Headings.	 	 	24	 
	Section 6.2
	 	Successors and Assigns.	 	 	24	 
	Section 6.3
	 	Separability Clause.	 	 	24	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 6.4
	 	Governing Law.	 	 	24	 
	Section 6.5
	 	Satisfaction and Discharge; Legal
Defeasance.	 	 	24	 
	Section 6.6
	 	Covenant Defeasance.	 	 	24	 
	Section 6.7
	 	Repayment to Company.	 	 	25	 
	Section 6.8
	 	Place of Payment.	 	 	26	 
	Section 6.9
	 	Jurisdiction.	 	 	26	 

ii

 

EXHIBITS

	 	 	Exhibit A            FORM OF SENIOR NOTE

 

Reconciliation and tie between Trust Indenture Act of 1939 and

Supplemental Indenture, dated as of April 4, 2006

§ 316(c) 1.5

 

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

iii

 

          
This FIFTH SUPPLEMENTAL INDENTURE, dated as of April 4, 2006, is by and between CHARTERED
SEMICONDUCTOR MANUFACTURING LTD, a Singapore limited liability company, having its principal office
at 60 Woodlands Industrial Park D, Street 2, Singapore 738406 and THE BANK OF NEW YORK, a U.S.
national banking association, as Trustee, having its principal office at 101 Barclay Street,
21st Floor West, New York, New York 10286, USA.

WITNESSETH:

          
WHEREAS, the Company and Wells Fargo Bank Minnesota, National Association (“Wells
Fargo”) executed and delivered an indenture, dated as of April 2, 2001, to provide for the
issuance by the Company from time to time of Securities to be issued in one or more series as
provided in the Indenture;

          
WHEREAS, Wells Fargo and the Company entered into the First Supplemental Indenture, dated as
of April 2, 2001, naming Wells Fargo as trustee for 2.50% Senior Convertible Notes due 2006 (the
“Convertible Notes”);

          
WHEREAS, the Trustee and the Company entered into (i) the Second Supplemental Indenture, dated
as of August 3, 2005, naming The Bank of New York as trustee for 5.75% Senior Notes due 2010, (ii)
the Third Supplemental Indenture, dated as of August 3, 2005, naming The Bank of New York as
trustee for 6.375% Senior Notes due 2015, and (iii) the Fourth Supplemental Indenture, dated as of
August 17, 2005, naming The Bank of New York as trustee for 6.00% Amortizing Bonds due 2010;

          
WHEREAS, the issuance and sale of up to $300,000,000 aggregate principal amount of a series of
the Company’s Securities due 2013 (the “Senior Notes”) have been authorized by the Board of
Directors of the Company;

          
WHEREAS, the Company desires to issue and sell $300,000,000 aggregate principal amount of the
Senior Notes on the date hereof;

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

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

ARTICLE ONE

DEFINITIONS

			
	Section 1.1	 	Relation to Base Indenture.

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

			
	Section 1.2	 	Trustee.

          
The Trustee with respect to the Senior Notes shall be The Bank of New York. For the sole
purpose of the issuance of the Senior Notes, the Trustee acknowledges and agrees that (i) all
references to the “Trustee” under the Indenture as used with respect to the Senior Notes shall mean
The Bank of New York and (ii) unless specifically provided otherwise in this Supplemental
Indenture,

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it shall be bound by the provisions of the Indenture (not taking into account any future
amendments of the Indenture unless specifically agreed to by the Company and The Bank of New York
in writing and approved by the Holders, if such approval is required under the relevant provisions
of the Indenture and this Supplemental Indenture) as if it is a party to the Indenture in place of
Wells Fargo such that The Bank of New York shall have the same obligations, rights and benefits
under the Indenture as Wells Fargo with respect to the Senior Notes. For the avoidance of any
doubt, Wells Fargo shall continue to serve as the Trustee with respect to the outstanding
Convertible Notes.

			
	Section 1.3	 	Definitions. 

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

          
“Act” has the meaning specified in Section 1.5.

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

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

          
“Agent Members” has the meaning specified in Section 2.2.2.

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

          
“Beneficial Ownership” has the meaning specified in Rules 13d-3 and 13d-5 of the
Exchange Act.

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

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

          
“Clearstream” means Clearstream Banking, société anonyme.

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

          
“Company’s Authorized Agent” has the meaning specified in Section 6.9.

          
“Control” means (i) possession, directly or indirectly, of more than 50% of the Voting
Securities of the Company, or (ii) the ability, directly or indirectly, to influence any decision
of, or to direct or cause the direction of, the Company’s management, and policies, including
decisions pertaining to operations and maintenance.

          
“corporation” includes corporations, associations, companies and business trusts.

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

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

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

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

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

      (v) treasury stock (if any are permitted under applicable law); and

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

          
“Convertible Notes” has the meaning set forth in the recitals.

          
“Defaulted Interest” has the meaning specified in Section 2.3.

          
“Depository” means The Depository Trust Company.

          
“Event of Default” has the meaning specified in Section 4.1.

          
“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

          
“Euroclear” means Euroclear Bank S.A./N.V.

          
“Global Note” has the meaning specified in Section 2.2.1.

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“Group” has the meaning as used in Rules 13d-3 and 13d-5 of the Exchange Act.

          
“Holder” means a Person in whose name a Senior Note is registered in the Security
Register.

          
“Indebtedness” means, except as provided otherwise in Section 5.2 for the purposes of
Section 5.2 only, with respect to any Person on any date of determination:

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

      (A) indebtedness of such Person for money borrowed; and

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

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

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

      (iv) all obligations of such Person for the reimbursement of any obligor on any
letter of credit or banker’s acceptance (other than obligations with respect to
letters of credit securing obligations (other than obligations described in (i),
(ii) or (iii) above) entered into in the ordinary course of business of such Person
to the extent such letters of credit are not drawn upon or, if and to the extent
drawn upon, such drawing is reimbursed no later than the third Business Day
following receipt by such Person of a demand for reimbursement following payment on
the letter of credit);

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

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

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

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

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

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“Indenture” means the indenture, dated as of April 2, 2001, between the Company and
Wells Fargo, as originally executed and as it may from time to time be supplemented or amended by
one or more supplemental indentures entered into between the Company and The Bank of New York, as
trustee thereunder, pursuant to the applicable provisions thereof, including, for all purposes of
this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that
are deemed to be a part of and govern this instrument and any such supplemental indenture,
respectively.

          
“Interest Payment Date” means the Stated Maturity of an installment of interest on the
Senior Notes.

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

          
“Maturity”, when used with respect to any Senior Note, means the date on which the
principal of such Senior Note or an installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of acceleration, notice of
redemption, notice of option to elect repayment or otherwise.

          
“New York Court” has the meaning specified in Section 6.9.

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

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

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

      (iii) Senior Notes which have been paid pursuant to Section 2.8 of the Indenture or in
exchange for or in lieu of which other Senior Notes have been authenticated and delivered
pursuant to this Supplemental Indenture, other than any such Senior Notes in respect of
which there shall have been presented to the Trustee proof satisfactory to it that such
Senior Notes are held by a bona fide purchaser in whose hands the Senior Notes are valid
obligations of the Company; provided, however, that in determining whether the Holders of
the requisite principal amount of Senior Notes Outstanding have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, and for the purpose of
making the calculations required by TIA Section 313, Senior Notes owned by the Company or
any other obligor upon the Senior Notes or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in making such calculation or in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Senior
Notes which the Trustee knows to be so owned shall be so disregarded. Senior Notes so
owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Senior Notes and

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that the pledgee is not the Company or any other obligor upon the
Senior Notes or any Affiliate of the Company or such other obligor.

          
“Paying Agent” means any Person authorized by the Company to pay the principal of or
interest on any Senior Notes on behalf of the Company.

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

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

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

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

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

          
“Regular Record Date” for the interest payable on any Interest Payment Date means the
March 20 or September 19 (whether or not a Business Day), as the case may be, immediately preceding
such Interest Payment Date.

          
“Repayment Date”, when used with respect to any Senior Note to be repaid at the option
of the Holder, means the date fixed for such repayment pursuant to this Supplemental Indenture.

          
“Repayment Event” means any event where (a) Temasek ceases to beneficially own at
least 30% of the Company’s Voting Securities; (b) any “person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Exchange Act) acquires Beneficial Ownership of the Company’s
Voting Securities that is greater than the Beneficial Ownership of Temasek of the Company’s Voting
Securities; or (c) Temasek ceases to Control the Company.

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

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

          
“Security Register” means the register kept by the Registrar with respect to the
Senior Notes pursuant to Section 2.4 of the Indenture.

          
“Senior Notes” has the meaning specified in the recitals.

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“Singapore Exchange” means the Singapore Exchange Securities Trading Limited.

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

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

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

          
“Temasek” means Temasek Holdings (Private) Limited.

          
“Trustee” means, pursuant to Section 1.2, The Bank of New York until a successor
Trustee shall have become such pursuant to the applicable provisions of this Supplemental
Indenture, and thereafter “Trustee” shall mean such successor Trustee.

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

          
“Voting Securities” refers to all of the Company’s outstanding securities entitled to
vote generally in elections of the Company’s directors.

          
“Wells Fargo” has the meaning specified in the recitals.

			
	Section 1.4	 	Rules of Construction.

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

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

          
(iii) References to Articles and Sections, unless otherwise stated, refer to the articles and
sections of this Supplemental Indenture.

			
	Section 1.5	 	Acts of Holders.

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

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

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

          
(d) If the Company shall solicit from the Holders of Senior Notes any request, demand,
authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by
or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders
entitled to give such request, demand, authorization, direction, notice, consent, waiver or other
Act, but the Company shall have no obligation to do so. Notwithstanding TIA Section 316(c), such
record date shall be the record date specified in or pursuant to such Board Resolution, which shall
be a date not earlier than the date 30 days prior to the first solicitation of Holders generally in
connection therewith and not later than the date such solicitation is completed. If such a record
date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act
may be given before or after such record date, but only the Holders of record at the close of
business on such record date shall be deemed to be Holders for the purposes of determining whether
Holders of the requisite proportion of Senior Notes Outstanding have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent, waiver or other Act,
and for that purpose the Senior Notes Outstanding shall be computed as of such record date;
provided that no such authorization, agreement or consent by the Holders on such record date shall
be deemed effective unless it shall become effective pursuant to the provisions of this
Supplemental Indenture not later than 180 days after the record date.

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

			
	Section 1.6	 	Notices, etc., to Trustee and Company.

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

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

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

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

			
	Section 1.7	 	Notice to Holders; Waiver.

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

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

          
In addition, the Company shall publish any notices to Holders as necessary, including in
English in the Financial Times, and The Wall Street Journal; provided that for so long as any
Senior Notes are represented by Global Notes, notices may be given by delivery of the relevant
notice to the Depository, including their Euroclear System and Clearstream Banking participants,
for communication by them to their respective participants in substitution for publication in any
such newspaper. If at any time publication in any such newspaper is not practicable, notices will
be valid for the purposes of this section if published in an English language newspaper selected by
the Company with general circulation in the market regions otherwise covered by the Financial Times
and The Wall Street Journal. Any such notice shall be deemed to have been given on the date of such publication or, if published more than once on
different dates, on the first date on which publication is made.

ARTICLE TWO

FORM AND TERMS OF THE SENIOR NOTES

			
	Section 2.1	 	Terms of the Senior Notes.

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

          
2.1.1 Pursuant to Section 2.2.1. of the Indenture, the title of the Senior Notes to be issued
as a series of Securities under the Indenture shall be the “6.25% Senior Notes due 2013”.

          
2.1.2 Pursuant to Section 2.2.2. of the Indenture, the Senior Notes shall be issued at a price
equal to 99.053% of the aggregate principal amount thereof.

          
2.1.3 Pursuant to Section 2.2.3. of the Indenture, the aggregate principal amount of the
Senior Notes that may be authenticated and delivered under this Supplemental Indenture shall be

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limited to US$300,000,000. In addition, the Company shall be permitted to issue additional notes
that are fully fungible with the Senior Notes including in respect of their principal amount,
interest rate, redemption dates and terms and conditions of redemption without the consent of the
Holders. In the event the Company does so issue such Additional Senior Notes, provided that the
terms and conditions of such Additional Senior Notes so allow, the Company may consolidate all such
Additional Senior Notes, for purposes of redemptions, so that redemptions would be made without any
distinction in respect of the Senior Notes and all Additional Senior Notes subsequently issued. In
the event of such consolidation, the Holders and the holders of such Additional Senior Notes would
be deemed to be, and treated as though they were, members of a single class.

          
2.1.4 Pursuant to Section 2.2.4. of the Indenture, 100% of the principal amount of the Senior
Notes shall be payable on April 4, 2013.

          
2.1.5 Pursuant to Section 2.2.5. of the Indenture, the Senior Notes shall bear interest at a
rate equal to 6.25% per annum; interest on the Senior Notes shall accrue from April 4, 2006 or from
the most recent Interest Payment Date to which interest has been paid or duly provided for, until
the principal hereof is paid or duly provided for; interest on the Senior Notes shall be payable
semi-annually in arrears in cash on April 4 and October 4 of each year to Holders of record on
March 20 or September 19 (whether or not a Business Day) immediately preceding the applicable
Interest Payment Date. Interest on the Senior Notes shall be computed from and including the prior
Interest Payment Date (or, in the case of the first Interest Payment Date, from and including April
4, 2006) to but excluding the next Interest Payment Date on the basis of a 360-day year consisting
of twelve 30-day months. In the event that any principal or interest on the Senior Notes is not paid when due, whether at Maturity or otherwise, then except to the
extent permitted by law, such overdue principal and interest shall bear interest until paid at the
rate of interest set forth in this Section 2.1.5., compounded semi-annually.

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

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

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

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

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

          
2.1.11 Pursuant to Section 2.2.13. of the Indenture, the principal amount of the Senior Notes
together with any accrued, but unpaid, interest thereon shall be payable upon declaration of
acceleration thereof pursuant to Section 6.2 of the Indenture as amended by Article Four.

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

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

10

 

          
2.1.14 Pursuant to Section 2.2.18. of the Indenture, the Senior Notes shall not be secured by
any collateral, except as may be provided in Section 5.1. The Senior Notes shall not be guaranteed
by any Person.

          
2.1.15 Pursuant to Section 2.2.19 of the Indenture, the Events of Default which apply to the
Senior Notes and the right of the Trustee and Holders of Senior Notes to declare the principal
amount thereof due and payable pursuant to Section 6.2 of the Indenture as amended by this
Supplemental Indenture are set forth in Article Four.

          
2.1.16 Pursuant to Section 2.2.20 of the Indenture, additions to or changes in the covenants
set forth in Articles IV or V of the Indenture which apply to the Senior Notes are set forth in
Article Five.

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

          
2.1.18 Pursuant to Section 2.2.22 of the Indenture, the Company hereby appoints the
Depository, the Paying Agent and the Registrar as set forth in Section 2.4.

			
	Section 2.2	 	Form and Dating.

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

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

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

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

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

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

11

 

Depository and its Agent Members, the operation of customary practices of
such Depository governing the exercise of the rights of an owner of a beneficial interest in the
Global Note.

          
2.2.3 Certificated Senior Notes. Senior Notes issued in certificated form pursuant to Section
2.14.2 of the Indenture shall be substantially in the form of Exhibit A attached hereto (but
without including the text referred to in footnotes 1 and 2 thereto). Owners of beneficial
interests in the Global Note shall not be entitled to receive physical delivery of certificated
Senior Notes except as specified pursuant to Section 2.14.2 of the Indenture.

			
	Section 2.3	 	Payment of Interest; Interest Rights Preserved.

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

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

      (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Senior Notes (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such Defaulted Interest,
which shall be fixed in the following manner. The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Senior Note and the
date of the proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of
such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to be held in
trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause
provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such
Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to
the date of the proposed payment and not less than 10 days after the receipt by the Trustee
of the notice of the proposed payment. The Trustee shall promptly notify the Company of
such Special Record Date and, in the name and at the expense of the Company, shall cause
notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be given in the manner provided for in Section 1.6, not less than 10 days prior
to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and
the Special Record Date therefor having been so given, such Defaulted Interest shall be
paid to the Persons in whose names the Senior Notes (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (2).

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

          
Subject to the foregoing provisions of this Section, each Senior Note delivered under this
Supplemental Indenture upon registration of transfer of or in exchange for or in lieu of any other

12

 

Senior Note shall carry the rights to interest accrued and unpaid, and to accrue, which were
carried by such other Senior Note.

			
	Section 2.4	 	Depository and Paying Agent for Senior Notes.

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

          
The Company initially appoints the Trustee to act as the Paying Agent and the Registrar with
respect to the Global Note.

			
	Section 2.5	 	Calculations.

          
All calculations relating to redemption will be made to the nearest cent.

ARTICLE THREE

ADDITIONAL REDEMPTION PROVISIONS

			
	Section 3.1	 	Redemption at Option of the Company.

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

          
3.1.1      Redemption for Taxation Reasons.

          
The Senior Notes are redeemable at the option of the Company, in whole but not in part, on any
date at a Redemption Price equal to the principal amount, plus any accrued and unpaid interest to
the Redemption Date, if the Company determines that, as a result of (1) any change in or amendment
to the laws or regulations of Singapore or any authority of or in Singapore having power to tax, or
rulings promulgated under any such laws or regulations or by any authority of or in Singapore having power to tax, (2) any change in the general
application or official or judicial interpretation of any such laws, regulations or rulings, or (3)
any change in the general application or official or judicial interpretation of, or any execution
or amendment to, any treaty or treaties affecting taxation to which Singapore is a party, which
change, execution or amendment, in each case, becomes effective on or after April 4, 2006, the
Company has been or will be required to pay Additional Amounts with respect to the Senior Notes.

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

          
The election of the Company to redeem any Senior Notes pursuant to Section 3.1.1. shall be
evidenced by a Board Resolution. In case of any redemption at the election of the Company, the
Company shall, concurrently with the giving of notice to the Holders, notify the Trustee of such
Redemption Date. Prior to any redemption pursuant to Section 3.1.1, the Company agrees to provide
the Trustee with an Opinion of Counsel that the conditions precedent to such redemption have
occurred.

          
3.1.3      Notice of Redemption.

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

          
All notices of redemption shall set forth:

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        (1) the Redemption Date,

        (2) the Redemption Price and the amount of accrued and unpaid interest to the
Redemption Date payable as provided in Section 3.1.5, if any,

        (3) that on the Redemption Date, the Redemption Price (and accrued and unpaid
interest, if any, to the Redemption Date) payable as provided in Section 3.1.5 will
become due and payable upon each such Senior Note to be redeemed, and that interest
thereon will cease to accrue on and after said date, and

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

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

				
	 	3.1.4	 	Deposit of Redemption Price.

          
On or before any Redemption Date (but no later than 10:00 A.M. (New York time) on the
Redemption Date), the Company shall deposit with the Trustee or with a Paying Agent an amount of
money sufficient to pay the Redemption Price of, and accrued and unpaid interest on, all the Senior
Notes which are to be redeemed on that date. The Trustee and Paying Agent shall have no obligation
to make any payments prior to the receipt of funds sufficient for such payment from the Company.

				
	 	3.1.5	 	Senior Notes Payable on Redemption Date.

          
Notice of redemption having been given as aforesaid, the Senior Notes so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified (together
with accrued and unpaid interest, if any, to the Redemption Date), and from and after such date
(unless the Company shall default in the payment of the Redemption Price and accrued and unpaid
interest) such Senior Notes shall cease to bear interest. Upon surrender of any such Senior Note
for redemption in accordance with said notice, such Senior Note shall be paid by the Company at the
Redemption Price, together with accrued and unpaid interest, if any, to the Redemption Date;
provided, however, that installments of interest whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Senior Notes, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record Dates according to
their terms and the provisions of Section 2.3.

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

			
	Section 3.2	 	Repurchase at Option of Holders.

          
The Indenture governing the Senior Notes shall be deemed to include the following provisions
regarding repurchase at the option of Holders:

ARTICLE TWELVE

REPAYMENT AT OPTION OF HOLDERS

Section 12.1.      Applicability of Article.

14

 

          Upon the occurrence of a Repayment Event, each Holder of the Senior Notes
shall have the right to require repayment by the Company for all (or any portion
equal to US$1,000 or any integral multiple thereof) of such Holder’s Senior Notes
in cash at a Repayment Price equal to 101% of the principal amount, plus any
accrued and unpaid interest to the Repayment Date (subject to the right of Holders
of record of the Senior Notes on the relevant Regular Record Date to receive
interest due on an Interest Payment Date that is on or prior to the Repayment Date) in accordance with the provisions of this Article Twelve of
this Indenture.

Section 12.2.      Repayment of Senior Notes.

          The Company covenants that on or before the Repayment Date (but no later than
10:00 A.M. (New York time) on the Redemption Date) it will deposit with the Trustee
or with a Paying Agent an amount of money sufficient to pay the Repayment Price and
the accrued and unpaid interest on, all the Senior Notes or portions thereof, as
the case may be, to be repaid on such Repayment Date. The Trustee and Paying Agent
shall have no obligation to make any payments prior to the receipt of funds
sufficient for such payment from the Company.

Section 12.3.      Exercise of Option.

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

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

          Any Senior Notes surrendered for repayment as provided in this Article shall
become due and payable and shall be paid by the Company on the Repayment Date
therein specified, and on and after such Repayment Date (unless the Company shall
default in the payment of such Senior Notes on such Repayment Date) such Senior
Notes shall cease to bear interest. Upon surrender of any such Senior Note for
repayment in accordance with the provisions of this Article 12 of this Indenture,
the Repayment Price of such Senior Note to be repaid shall be paid by the Company,
together with accrued interest, if any, to the Repayment Date; provided, however, that installments of interest whose Stated
Maturity is on or prior to the Repayment Date shall be payable to the Holders of
such Senior Notes, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 2.3 of the Fifth Supplemental Indenture.

15

 

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

Section 12.5.      Senior Notes Repaid in Part.

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

Section 12.6.      Notice of Repayment Event.

          Notice of a Repayment Event shall be given in the manner provided for in
Section 1.6 of the Fifth Supplemental Indenture as soon as practicable, but in no
event later than five (5) Business Days after the Company becomes aware of the
occurrence of such event, to the Trustee and each Holder of Senior Notes.

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

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

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

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

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

          Notice of any Repayment Event shall be given by the Company or, at the
Company’s request, by the Trustee in the name and at the expense of the Company, in
which case the Trustee shall provide the Company with a notice stating the date on
which such notice was mailed to Holders and/or proof that such notice was
published, in each case in accordance with Section 1.6 of the Fifth Supplemental
Indenture.

16

 

			
	Section 3.3	 	Purchase of Senior Notes.

          
The Company or any Subsidiary of the Company may at any time and from time to time purchase
Senior Notes at any price in the open market or otherwise. Any Senior Note so purchased may, to the
extent permitted by applicable law and subject to any other contractual obligations of the Company,
be held, re-issued or resold or, at the Company’s option, be surrendered to the Trustee for
cancellation.

ARTICLE FOUR

DEFAULTS AND REMEDIES WITH RESPECT TO THE SENIOR NOTES

          
With respect to the Senior Notes, Section 6.1, Section 6.2, and Section 6.3 of the Indenture,
respectively, shall be replaced in their entirety by Section 4.1, Section 4.2, and Section 4.3
hereunder:

			
	Section 4.1	 	Events of Default.

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

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

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

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

      (4) (A) there shall have occurred one or more defaults by the Company or any Material
Subsidiary in the payment of the principal of Indebtedness aggregating US$30 million or
more, when the same becomes due and payable at the Stated Maturity thereof, and such
default or defaults shall have continued after any applicable grace period and shall not
have been cured or waived or (B) Indebtedness of the Company or any Material Subsidiary
aggregating US$30 million or more shall have been accelerated or otherwise declared due and
payable, or required to be prepaid or repurchased (other than by regularly scheduled
required prepayment), prior to the Stated Maturity thereof; and, in the case of both (A)
and (B), continuance of such default or non-annulment of such acceleration for a period of
30 days after there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in principal
amount of the Senior Notes Outstanding a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder; or

      (5) (A) the entry of a decree or order by a court having jurisdiction in the premises
adjudging the Company or any of its Material Subsidiaries a bankrupt or insolvent, or
approving as properly filed a petition seeking reorganization, arrangement, adjustment or

17

 

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

			
	Section 4.2	 	Acceleration of Maturity; Rescission and Annulment.

          
If an Event of Default (other than an Event of Default referred to in Section 4.1(5) of this
Indenture) occurs and is continuing, then in every such case the Trustee or the Holders of not less
than 25% in principal amount of the Senior Notes Outstanding may declare the principal amount of
all the Senior Notes to be due and payable immediately, by a notice in writing to the Company (and
to the Trustee if given by Holders), and upon any such declaration such principal amount of all
Senior Notes shall become immediately due and payable. If an Event of Default specified in Section
4.1(5) of this Indenture shall occur, the principal amount of all outstanding Senior Notes shall
ipso facto become and be immediately due and payable without declaration or other act on the part
of the Trustee or any Holder.

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

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

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

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

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

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

      (2) all Events of Default, other than the non-payment of amounts of principal of or
interest on Senior Notes which have become due solely by such declaration of acceleration,
have been cured or waived as provided in this Section 4.2 of this Indenture.

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

18

 

			
	Section 4.3	 	Collection of Indebtedness and Suits for Enforcement by Trustee.

          
The Company covenants that if

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

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

the Company will, upon demand of the Trustee (but no such demand shall be required in the case of
an Event of Default specified in Section 4.1(5) of this Indenture), pay to the Trustee for the
benefit of the Holders of such Senior Notes, the whole amount then due and payable on such Senior
Notes for principal and interest, and interest on any overdue principal and, to the extent that
payment of such interest shall be legally enforceable, upon any overdue installment of interest, at
the rate borne by the Senior Notes, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

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

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

ARTICLE FIVE

COVENANTS

			
	Section 5.1	 	Consolidation, Merger, Conveyance, Transfer or Lease

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

ARTICLE V

SUCCESSORS

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

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

       (1) the corporation formed by such consolidation or into which the Company is
merged or the Person which acquires by conveyance or transfer, or which

19

 

leases, the
properties and assets of the Company and its Subsidiaries substantially as an
entirety (a) shall be a corporation, partnership or trust or other entity organized
and validly existing under the laws of Singapore or the United States and (b) shall
expressly assume, by an indenture supplemental hereto, executed and delivered to
the Trustee, in a form satisfactory to the Trustee, the Company’s obligation for
the due and punctual payment of the principal of, and interest, on all the Senior
Notes and the performance and observance of every covenant of the Fifth
Supplemental Indenture and this Indenture on the part of the Company to be
performed or observed;

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

       (3) the Company or such Person shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and such supplemental
indenture comply with the relevant terms and conditions of this Indenture and that
all conditions precedent herein provided for relating to such transaction have been
complied with.

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

     Section 5.2      Successor Person Substituted.

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

			
	Section 5.2	 	Negative Pledge.

          
The following additional covenant shall apply to the Senior Notes:

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

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

20

 

     (i) existing on April 4, 2006;

     (ii) to secure any Indebtedness (including Capitalized Lease Obligations)
incurred by the Company solely for the purposes of financing all or any part of the
purchase price or the cost of acquisition, design, development, construction,
equipping, installation, alteration, repair or improvement of any property or
assets acquired by the Company after April 4, 2006; provided that (A) the security
interest is confined to such property or assets, (B) the principal amount of
Indebtedness secured by such security interest shall not exceed such cost and (C)
the security interest attaches to such property or assets concurrently with or
within 120 days of the time of the acquisition of such property or assets or the
completion of the activity being financed;

     (iii) to secure any Indebtedness existing on (A) any property or asset of any
entity at the time the Company or one of its Subsidiaries acquire such entity after
April 4, 2006, whether by merger, consolidation or otherwise or (B) any property or
asset at the time it is acquired by the Company or one of its Subsidiaries after
April 4, 2006; provided that in each case such security interest shall not have been created in contemplation of or in connection with such
acquisition;

     (iv) on the property, assets or accounts of a Material Subsidiary to secure
Indebtedness (including Capitalized Lease Obligations) incurred for the purpose of
financing all or any part of the purchase price or cost of acquisition, design,
development, construction, equipping, installation, alteration, repair or
improvement of property, plant or equipment of such Material Subsidiary;

     (v) upon any debt service reserve or similar account of the Company or any of
its Material Subsidiaries established or existing for the purpose of servicing
payments of principal, interest or other amounts due or payable by the Company or
any of its Material Subsidiaries under any agreement, understanding or arrangement
pursuant to which the Company or any of its Material Subsidiaries has incurred
Indebtedness or (without duplication) evidencing any Indebtedness of the Company or
any of its Material Subsidiaries; provided that the total Indebtedness of the
Company or of its Material Subsidiaries (taken together) secured by such accounts
of the Company or any of its Material Subsidiaries shall not exceed $50.0 million,
excluding any Indebtedness permitted to be secured by sub-sections (i) through
(iv), (vi), (vii) or (viii) of this Section 5.2.2 of this Indenture;

     (vi) a contractual right of setoff pertaining to the pooled deposit and/or
sweep accounts of the Company or any of its Material Subsidiaries to permit
satisfaction of overdraft or similar obligations incurred in the ordinary course of
business;

     (vii) to secure any Indebtedness owing to the Company or to a wholly-owned
Material Subsidiary; or

     (viii) a refinancing, renewal, extension or replacement (in whole or in part)
of any Indebtedness permitted to be secured by subsections (i) through (vii) above
of Section 5.2.2 of this Indenture; provided that the relevant indebtedness is not
increased.

          For the purposes of Section 5.2 of this Indenture only:

          “Indebtedness” means any obligation for the payment or repayment of money borrowed.

21

 

			
	Section 5.3	 	Payment of Principal, Interest and Additional Amounts.

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

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

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

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

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

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

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

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

     (v) any combination of the items listed above;

nor shall Additional Amounts be paid with respect to any payment of the principal of or
interest on any Senior Note to any Holder who is a fiduciary or partnership or other than
the sole beneficial owner of the payment if the beneficial owner would not otherwise have
been entitled to the Additional Amounts.

22

 

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

			
	Section 5.4	 	Maintenance of Office or Agency.

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

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

			
	Section 5.5	 	Reports to Holders.

          
Notwithstanding that the Company may not be subject to the reporting requirements of Section
13 or 15(d) of the Exchange Act, so long as any Senior Notes remain outstanding, the Company shall,
(A) provide the Trustee and the Holders with the annual reports and information, documents and
reports as are specified in Sections 13 and 15(d) of the Exchange Act and applicable to a foreign
private issuer subject to such Sections within 15 days after the times specified for the filing of
the information, documents and reports under such Sections; and (B) file with the U.S. Securities
and Exchange Commission, to the extent permitted, the information, documents, and reports referred to in the provision above within the periods
specified for such filings under the Exchange Act (whether or not applicable to the Company).

          
In addition, at any time when the Company is not subject to, or the Company is not current in
reporting obligations under the provisions above, the Company shall make available, upon request,
to any Holder and any prospective purchaser of the Senior Notes the information required pursuant
to Rule 144A under the U.S. Securities Act of 1933.

23

 

ARTICLE SIX

MISCELLANEOUS

			
	Section 6.1	 	Effect of Headings.

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

			
	Section 6.2	 	Successors and Assigns.

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

			
	Section 6.3	 	Separability Clause.

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

			
	Section 6.4	 	Governing Law.

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

			
	Section 6.5	 	Satisfaction and Discharge; Legal Defeasance.

          Section 8.1 and Section 8.3 of the Indenture, regarding satisfaction and discharge, and legal
defeasance with respect to the Securities of any Series shall not be applicable to the Senior
Notes.

			
	Section 6.6	 	Covenant Defeasance.

          Section 8.4 of the Indenture is hereby amended and restated with respect to the Senior Notes
as follows:

          The Company need not comply with the covenants described in Sections 5.2 and 5.5 of this
Indenture, if:

          (i) the Company has deposited or caused to be irrevocably deposited in trust with the Trustee,
specifically pledged as security for, and dedicated solely to, the benefit of the Holders of the
Senior Notes, (a) cash in U.S. dollars, or (b) U.S. Government Obligations, or (c) any combination
of (a) and (b), which through the payment of interest and principal in respect thereof, in
accordance with their terms, will provide (and without reinvestment and assuming no tax liability
will be imposed on such Trustee), not later than one day before the due date of any payment of
money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent
certified public accountants expressed in a written certification thereof delivered to the Trustee,
to pay principal and interest, if any, on the Senior Notes on the dates such installments of
interest or principal are due;

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

24

 

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

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

          (v) the Company shall have delivered to the Trustee an Opinion of Counsel confirming that
Holders of the Senior Notes will not recognize income, gain or loss for Singapore income tax
purposes as a result of such deposit and defeasance and will be subject to Singapore income tax on
the same amounts, in the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred (unless the Company has deposited or caused to be
irrevocably deposited in trust with the Trustee, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of the Senior Notes, (a) cash in U.S. dollars, or
(b) U.S. Government Obligations, or (c) any combination of (a) and (b), which through the payment
of interest and principal in respect thereof, in accordance with their terms, will provide (and
without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than
one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion
of a nationally recognized firm of independent certified public accountants expressed in a written
certification thereof delivered to the Trustee, to fully compensate the Holders of the Senior Notes
for any Singapore taxes they would be required to pay as a result of such deposit and defeasance);

          (vi) the Company shall have delivered to the Trustee an Officers’ Certificate stating the
deposit was not made by the Company with the intent of preferring the Holders of the Senior Notes
over any other creditors of the Company or with the intent of defeating, hindering, delaying or
defrauding any other creditors of the Company; and

          (vii) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, each stating that all conditions precedent herein provided for relating to the
defeasance stated in subsections (i) through (vi) have been complied with.

          In the event covenant defeasance occurs, any omission to comply with the applicable covenants
will not constitute a Default or an Event of Default with respect to the Senior Notes.

			
	Section 6.7	 	Repayment to Company.

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

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

25

 

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

			
	Section 6.8	 	Place of Payment.

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

          change the place of payment or make the principal of or interest, if any, on any
Security payable in any currency other than that stated in

          the Security.

			
	Section 6.9	 	Jurisdiction.

          The Company agrees that any suit, action or proceeding against the Company arising out of or
based upon this Supplemental Indenture or the transactions contemplated hereby may be instituted in
any U.S. Federal or State court located in the State of New York, County of New York (“New York
Court”); and waives any objection which it may now or hereafter have to the laying of venue of
any such proceeding, and irrevocably accepts and submits to the non-exclusive jurisdiction of such
courts in any suit, action or proceeding. The Company has appointed Chartered Semiconductor
Manufacturing, Inc., at 1450 McCandless Drive, Milpitas, California 94035, as its authorized agent
(the “Company’s Authorized Agent”), upon whom process may be served in any suit, action or
proceeding arising out of or based upon this Supplemental Indenture or the transactions
contemplated herein which may be instituted in any New York Court and expressly accepts the
non-exclusive jurisdiction of any such court in respect of any such suit, action or proceeding.
The Company consents to process being served in any action or proceeding by mailing a copy thereof
by registered or certified mail to the Company’s Authorized Agent. The Company hereby represents
and warrants that the Company’s Authorized Agent has accepted such appointment and has agreed to
act as said agent for service of process, and the Company agrees to take any and all action,
including the filing of any and all documents that may be necessary to continue such appointment in
full force and effect as aforesaid. Service of process upon the Company’s Authorized Agent shall be
deemed, in every respect, effective service of process upon the Company. Notwithstanding the
foregoing, any action arising out of or based upon this Supplemental Indenture may be instituted in
any other court of competent jurisdiction, including those in Singapore.

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

26

 

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

	 	 	 	 	 
	 	 	CHARTERED SEMICONDUCTOR

MANUFACTURING LTD
	 
	 	 	 	 
	 

	 	By:	 	/s/ George Thomas 
	 

	 	 	 	 
	 

	 	 	 	Name: George Thomas

Title:   Senior Vice President and

            Chief Financial Officer
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 
	 	 	 	 
	 

	 	By:	 	/s/ Vanessa Loh 
	 

	 	 	 	 
	 

	 	 	 	Name: Vanessa Loh

Title:   Vice President

27

 

Exhibit A

This Security is a Global Security within the meaning of the Indenture hereinafter referred to and
is registered in the name of the Depository or a nominee of the Depository. This Security is
exchangeable for Securities registered in the name of a person other than the Depository or its
nominee only in the limited circumstances described in the Indenture, and may not be transferred
except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository
to the Depository or another nominee of the Depository or by the Depository or any such nominee to
a successor Depository or a nominee of such a successor Depository.1

CHARTERED SEMICONDUCTOR MANUFACTURING LTD

6.25% Senior Notes due 2013

	 	 	 
	No.           

	 	US$                    

CUSIP No. 16133R AD 8

          Chartered Semiconductor Manufacturing Ltd, a corporation duly organized and existing under the
laws of Singapore (herein called the “Company”, which term includes any successor Person
under the Supplemental Indenture hereinafter referred to), for value received, hereby promises to
pay to                      or registered assigns, at the office or agency of the Company referred to
below, 100% of the principal sum of                      United States Dollars ($300,000,000) on April 4,
2013, at the office or agency of the Company referred to below, and to pay interest thereon in
arrears commencing October 4, 2006 and semi-annually thereafter, on April 4, and October 4 in each
year, at the rate of 6.25% per annum accruing from April 4, 2006 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, until the principal hereof is
paid or duly provided for, and (to the extent lawful) to pay on demand interest on any overdue
interest at the rate borne by the Senior Notes from the date on which such overdue interest becomes
payable to the date payment of such interest has been made or duly provided for. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided
in such Supplemental Indenture, be paid to the Person in whose name this Senior Note (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest, which shall be the March 20 or September 19 (whether or not a Business Day), as the
case may be, immediately preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for shall forthwith cease to be payable to the Holder on the relevant Regular
Record Date, and such overdue interest, and (to the extent lawful) interest on such overdue
interest at the rate borne by the Senior Notes, may be paid to the Person in whose name this Senior
Note (or one or more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof
shall be given to Holders of Senior Notes not less than 10 days prior to such Special Record Date,
or may be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Senior Notes may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Supplemental Indenture. Payment of
the principal of and interest on this Senior Note will be made at the office or agency of the
Company maintained for that purpose in The City of New York or at such other office or agency of
the Company as may be maintained for such purpose, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that payments on a Senior Note in definitive certificated form can be made at
the option of the Company by (i) check mailed to

 

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

28

 

the address of the Person entitled thereto as such address shall appear on the Security
Register or (ii) transfer to an account maintained by the payee located in the United States.

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

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

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

	 	 	 	 	 
	 	 	CHARTERED SEMICONDUCTOR

     MANUFACTURING LTD
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:
	 
	 	 	 	 
	 

	 	Dated:	 	 

CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee

 
	 	 	By:  	 
	 	 	 	Name:  
	 	 	 	Title:  
	 

29

 

                                                                 [Form of Reverse of Senior Note]

6.25% Senior Notes due 2013

     Unless and until it is exchanged in whole or in part for Notes in certificated form, this Note
may not be transferred except as a whole by the Depository to a nominee of the Depository or by a
nominee of the Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such successor Depository.
Unless this certificate is presented by an authorized representative of The Depository Trust
Company (55 Water Street, New York, New York) (“DTC”) to the issuer or its agent for
registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede & Co. or such other name as may be requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or such other entity as may be requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.2

     This Senior Note is one of a duly authorized issue of securities of the Company designated as
its 6.25% Senior Notes due 2013 (herein called the “Senior Notes”), limited (except as
otherwise provided in the Supplemental Indenture referred to below) in aggregate principal amount
of up to US$300,000,000, which may be issued under the indenture, dated as of April 2, 2001,
between the Company and Wells Fargo Bank Minnesota, as originally executed and as it may from time
to time be supplemented or amended by one or more supplemental indentures entered into between the
Company and The Bank of New York pursuant to the applicable provisions thereof, including, for all
purposes of this instrument and any such supplemental indenture, the provisions of the Trust
Indenture Act that are deemed to be a part of and govern this instrument and any such supplemental
indenture, respectively (the “Indenture”), as supplemented by a fifth supplemental
indenture (herein called the “Supplemental Indenture”), dated as of April 4, 2006, between
the Company and The Bank of New York, as trustee (herein called the “Trustee”, which term
includes any successor trustee under the Supplemental Indenture), to which Indenture and
Supplemental Indenture reference is hereby made for a statement of the respective rights,
limitations of rights, duties, obligations and immunities thereunder of the Company, the Trustee
and the Holders of the Senior Notes, and of the terms upon which the Senior Notes are, and are to
be, authenticated and delivered.

     This Senior Note may be redeemed or repurchased as set forth in the Supplemental Indenture and
summarized below. This Senior Note is redeemable at the option of the Company, in whole but not in
part, on any date at a Redemption Price equal to the principal amount of this Senior Note, plus any
accrued and unpaid interest to the Redemption Date, if the Company determines that, as a result of
(A) any change in or amendment to the laws or regulations of Singapore or any authority of or in
Singapore having power to tax, or rulings promulgated under any such laws or regulations or by any
authority of or in Singapore having power to tax, (B) any change in the general application or
official or judicial interpretation of any such laws, regulations or rulings, or (C) any change in
the general application or official or judicial interpretation of, or any execution or amendment
to, any treaty or treaties affecting taxation to which Singapore is a party, which change,
execution or amendment, in each case, becomes effective on or after April 4, 2006, the Company has
been or will be required to pay Additional Amounts with respect to the Senior Notes.

     This Senior Note, or a portion thereof equal to US$1,000 or any integral multiple thereof, is
subject to repayment by the Company at the option of the Holder hereof upon the occurrence of
certain Repayment Events described in Section 3.2 of the Supplemental Indenture (including events
relating to change of control of the Company), at a Repayment Price equal to 101% of the principal
amount of this

 

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

30

 

Senior Note, plus any accrued and unpaid interest to the Repayment Date. In order to be
repaid at the option of the Holder, this Senior Note, with the “Notice to Elect Repayment” form
duly completed by the Holder hereof (or the Holder’s attorney duly authorized in writing), must be
received by the Company at its office or agency maintained for that purpose in the Borough of
Manhattan, The City of New York, or Singapore, not later than the date specified by the Company in
its notice of the Repayment Event in accordance with Section 3.2 of the Supplemental Indenture.
Exercise of such option by the Holder of this Senior Note shall be irrevocable unless waived by the
Company.

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

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

     The Indenture and the Supplemental Indenture permit, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders under the Indenture and the Supplemental Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount
of the Senior Notes at the time Outstanding. The Indenture and the Supplemental Indenture also
contain provisions permitting the Holders of specified percentages in aggregate principal amount of
the Senior Notes at the time Outstanding, on behalf of the Holders of all the Senior Notes, to
waive compliance by the Company with certain provisions of the Indenture and the Supplemental
Indenture and certain past defaults under the Indenture and the Supplemental Indenture and their
consequences. Any such consent or waiver by or on behalf of the Holder of this Senior Note shall
be conclusive and binding upon such Holder and upon all future Holders of this Senior Note and of
any Senior Note issued upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this Senior Note.

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

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

     As provided in the Supplemental Indenture and subject to certain limitations therein set
forth, the transfer of this Senior Note is registrable on the Security Register of the Company,
upon surrender of this Senior Note for registration of transfer at the office or agency of the
Company maintained for such purpose in The City of New York, duly endorsed by, or accompanied by a
written instrument of transfer in

31

 

form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Senior Notes, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

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

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

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

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

32

 

FORM OF NOTICE TO ELECT REPAYMENT

     The undersigned registered Holder of the within Senior Note hereby irrevocably requests and
instructs the Company to repay this Senior Note (or the portion thereof specified below), pursuant
to Section 3.2 of the Supplemental Indenture referred to in this Senior Note, on the “Repayment
Date” specified in the Company’s notice of occurrence of the Repayment Event, at a Repayment Price
equal to 101% of the principal amount thereof, plus any accrued and unpaid interest to the
Repayment Date, to the undersigned at:

 

(Name and Address of the Undersigned.)

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

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

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

Dated:

	 	 	 	 	 
	 	 	 
	 	By:  	     ____________________________________
 	 
	 	 	 	 
	 	 	Signature of Registered Holder 	 

33

 

	 	 	 	 	 

SCHEDULE
OF EXCHANGES OF NOTES3

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

	 
	 	 	 	 	 	 	 	 	Principal Amount of	 	 	Signature of
	 	 	Amount of	 	 	Amount of	 	 	this Global Note	 	 	authorized
	 	 	decrease in	 	 	increase in	 	 	following such	 	 	officer
	 	 	Principal Amount	 	 	Principal Amount	 	 	decrease (or	 	 	of Trustee or
	Date of Exchange	 	of this Global Note	 	 	of this Global Note	 	 	increase)	 	 	Note Custodian

 

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

34

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