Document:

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                                                                     EXHIBIT 4.1

                    CHARTERED SEMICONDUCTOR MANUFACTURING LTD

                             SHARE OPTION PLAN 1999

                            ADOPTED ON 30 MARCH 1999

                       AMENDED AND RESTATED ON 30 MAY 2001
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                                TABLE OF CONTENTS

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SECTION 1.  ESTABLISHMENT AND PURPOSE                                   1

SECTION 2.  ADMINISTRATION                                              1

   (a)  Committee of the Board of Directors                             1
   (b)  Duties and Powers of the Committee                              1

SECTION 3.  ELIGIBILITY                                                 2

   (a)  General Rule                                                    2
   (b)  Ten-Percent Shareholders                                        2

SECTION 4.  SHARES SUBJECT TO PLAN                                      2

   (a)  Basic Limitation                                                2
   (b)  Additional Shares                                               3

SECTION 5.  TERMS AND CONDITIONS OF OPTIONS                             3

   (a)  Share Option Agreement                                          3
   (b)  Number of Shares                                                3
   (c)  Exercise Price                                                  3
   (d)  Withholding Taxes                                               3
   (e)  Exercisability                                                  3
   (f)  Accelerated Exercisability                                      4
   (g)  Basic Term                                                      4
   (h)  Nontransferability                                              4
   (i)  Termination of Service (Except by Death)                        4
   (j)  Leave of Absence                                                5
   (k)  Death of Optionee                                               5
   (l)  No Rights as a Shareholder                                      5
   (m)  Provisions Applicable to Section 162(m) Options                 5

SECTION 6.  PAYMENT FOR SHARES                                          6

   (a)  General Rule                                                    6
   (b)  Surrender of Shares                                             6
   (c)  Exercise/Sale                                                   6
   (d)  Exercise/Pledge                                                 6

SECTION 7.  ADJUSTMENT OF SHARES                                        6

   (a)  General                                                         6
   (b)  Mergers and Consolidations                                      6
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   (c)  Reservation of Rights                                           7

SECTION 8.  SECURITIES LAWS REQUIREMENTS                                7

   (a)  General                                                         7
   (b)  Financial Reports                                               7

SECTION 9.  NO RETENTION RIGHTS                                         7

SECTION 10.  DURATION AND AMENDMENTS                                    8

   (a)  Term of the Plan                                                8
   (b)  Right to Amend or Terminate the Plan                            8
   (c)  Effect of Amendment or Termination                              8

SECTION 11.  DEFINITIONS                                                8

SECTION 12.  EXECUTION                                                  11
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                    CHARTERED SEMICONDUCTOR MANUFACTURING LTD
                             SHARE OPTION PLAN 1999

SECTION 1. ESTABLISHMENT AND PURPOSE.

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

     Capitalized terms are defined in Section 11.

SECTION 2. ADMINISTRATION.

     (a) COMMITTEE OF THE BOARD OF DIRECTORS. The Plan shall be administered by
the Committee. The Committee shall consist solely of two or more members of the
Board of Directors appointed by and holding office at the pleasure of the Board
of Directors; provided, however, that in the event that the Board of Directors
or the Committee determines that the Plan is to comply with Section 162(m) of
the U.S. Tax Code, the Committee shall consist solely of two or more members of
the Board of Directors appointed by and holding office at the pleasure of the
Board of Directors, each of whom is an "outside director" for purposes of
Section 162(m) of the U.S. Tax Code. Appointment of Committee members shall be
effective upon acceptance of appointment. Committee members may resign at any
time by delivering written notice to the Board of Directors. Vacancies in the
Committee may be filled by the Board of Directors.

     (b) DUTIES AND POWERS OF THE COMMITTEE. It shall be the duty of the
Committee to conduct the general administration of the Plan in accordance with
its provisions. The Committee shall have the power to interpret the Plan and the
Share Option Agreements, and to adopt such rules for the administration,
interpretation, and application of the Plan as are consistent therewith, to
interpret, amend or revoke any such rules and to amend any Share Option
Agreement provided that the rights or obligations of the holder of the Option
that is the subject of any such Share Option Agreement are not affected
adversely. Any such interpretations and rules with respect to ISOs shall be
consistent with the provisions of Section 422 of the U.S. Tax Code. In its
absolute discretion, the Board of Directors may at any time and from time to
time exercise any and all rights and duties of the Committee under the Plan
except, in the case of Section 162(m) Options, with respect to matters which
under Section 162(m) of the U.S. Tax Code, or any regulations or rules issued
thereunder, are required to be determined in the sole discretion of the
Committee. Notwithstanding the foregoing, the full Board of Directors, acting by
a majority of its members in office, shall conduct the general administration of
the Plan with respect to Options granted to Outside Directors. All decisions,
interpretations and other actions of the Committee or the Board of Directors, as
the case may be, shall be final and binding on all Optionees and all persons
deriving their rights from an Optionee. The Committee may, but need not,
delegate from time to time some or all of its authority to grant Options under
the Plan to a

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committee consisting of one or more members of the Committee or of one or more
officers of the Company; provided, however, that the Committee may not delegate
its authority to grant (i) Section 162(m) Options or (ii) Options to individuals
who are officers of the Company who are delegated authority by the Committee
hereunder. Any delegation hereunder shall be subject to the restrictions and
limits that the Committee specifies at the time of such delegation of authority
and may be rescinded at any time by the Committee. At all times, any delegate
appointed under this Section 2(b) shall serve in such capacity at the pleasure
of the Committee.

SECTION 3. ELIGIBILITY.

     (a) GENERAL RULE. Employees, Outside Directors and Consultants shall be
eligible for the grant of Options except as follows:

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

          (ii)  Employees, Outside Directors and Consultants of Affiliated
     Companies who are citizens of the United States or who are deemed to be
     resident in the United States shall not be eligible for the grant of
     Options; and

          (iii) Employees of SMP who are citizens of the United States or who
     are deemed to be resident in the United States shall not be eligible for
     the grant of Options.

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

SECTION 4. SHARES SUBJECT TO PLAN.

     (a) BASIC LIMITATION. Shares offered under the Plan may be authorized but
unissued Shares. The aggregate number of Shares that may be issued under the
Plan shall not exceed 197,160,000 Shares. Such number shall be subject to
adjustment pursuant to Section 7. The aggregate number of Shares that are
subject to Options or other rights outstanding at any time under the Plan shall
not exceed the number of Shares that then remain available for issuance. The
Company, during the term of the Plan, shall at all times reserve and keep
available sufficient Shares to satisfy the requirements of the Plan. The maximum
number of Shares which may be subject to Options granted under the Plan to any
individual in any fiscal year shall not exceed the Award Limit and, to the
extent required by Section 162(m) of the U.S. Tax Code, shares subject to
Options which are canceled continue to be counted against the Award Limit.

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     (b) ADDITIONAL SHARES. In the event that any outstanding Option for any
reason expires or is cancelled or otherwise terminated, the Shares allocable to
the unexercised portion of such Option shall again be available for the purposes
of the Plan. Notwithstanding the foregoing, no Shares may again be optioned
hereunder if such action would cause an ISO to fail to qualify as an incentive
stock option under Section 422 of the U.S. Tax Code.

SECTION 5. TERMS AND CONDITIONS OF OPTIONS.

     (a) SHARE OPTION AGREEMENT. Each grant of an Option under the Plan shall be
evidenced by a Share Option Agreement between the Optionee and the Company. Such
Option shall be subject to all applicable terms and conditions of the Plan and
may be subject to any other terms and conditions which are not inconsistent with
the Plan and which the Committee deems appropriate for inclusion in a Share
Option Agreement; provided, however, that the terms and conditions of Section
162(m) Options shall include, but not be limited to, such terms and conditions
as may be necessary to meet the applicable provisions of Section 162(m) of the
U.S. Tax Code. The provisions of the various Share Option Agreements entered
into under the Plan need not be identical. Share Option Agreements evidencing
Section 162 (m) Options shall contain such terms and conditions as may be
necessary to meet the applicable provisions of Section 162(m) of the U.S. Tax
Code. Share Option Agreements evidencing ISOs shall contain such terms and
conditions as may be necessary to meet the applicable provisions of Section 422
of the U.S. Tax Code

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

     (c) EXERCISE PRICE. Each Share Option Agreement shall specify the Exercise
Price. The Exercise Price of an ISO shall not be less than 100% of the Fair
Market Value of a Share on the date of grant, and a higher percentage may be
required by Section 3(b). Subject to Section 3(b), the Exercise Price of an
Option shall not be less than the par value of a Share, unless otherwise
permitted by applicable law; provided, however, that in the case of Section
162(m) Options, such price shall not be less than 100% of the Fair Market Value
of a Share on the date the Option is granted. Subject to the foregoing, the
Exercise Price under any Option shall be determined by the Committee at its sole
discretion. The Exercise Price shall be payable in a form described in Section
6.

     (d) WITHHOLDING TAXES. As a condition to the exercise of an Option, the
Optionee shall make such arrangements as the Committee may require for the
satisfaction of any withholding tax obligations that may arise in connection
with such exercise. The Optionee shall also make such arrangements as the
Committee may require for the satisfaction of any withholding tax obligations
that may arise in connection with the disposition of Shares acquired by
exercising an Option.

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

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     (f) ACCELERATED EXERCISABILITY. All of an Optionee's Options shall become
exercisable in full if (i) the applicable Share Option Agreement does not
provide otherwise, (ii) the Company is subject to a Change in Control before the
Optionee's Service terminates, (iii) such Options do not remain outstanding,
(iv) such Options are not assumed by the surviving corporation or its parent and
(v) the surviving corporation or its parent does not substitute options with
substantially the same terms for such Options. If (i) the Company is subject to
a Change in Control before an Optionee's Service terminates, (ii) the Optionee's
Options do not become exercisable in full under the preceding sentence and (iii)
the applicable Share Option Agreement does not provide otherwise, then the
exercisability schedule in respect of the Optionee's Options that were
outstanding at the time of such Change in Control shall thereupon accelerate by
12 months. If (i) the Company makes an underwritten initial public offering of
its equity securities before an Optionee's Service terminates and (ii) the
applicable Share Option Agreement does not provide otherwise, then the
exercisability schedule in respect of the Optionee's Options that were
outstanding at the time of such offering shall thereupon accelerate by 12
months.

     (g) BASIC TERM. The Share Option Agreement shall specify the term of the
Option. The term shall not exceed 10 years from the date of grant, and a shorter
term may be required by Section 3(b). Subject to the preceding sentence, the
Committee at its sole discretion shall determine when an Option is to expire.

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

     (i) TERMINATION OF SERVICE (EXCEPT BY DEATH). If an Optionee's Service
terminates for any reason other than the Optionee's death, then the Optionee's
Options shall expire on the earliest of the following occasions:

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

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

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

     The Optionee or his guardian or legal representative or such other person
who has the management of the Optionee's estate may exercise all or part of the
Optionee's Options at any time before the expiration of such Options under the
preceding sentence, but only to the extent that such Options had become
exercisable before the Optionee's Service terminated (or became exercisable as a
result of the termination). The balance of such Options shall lapse when the

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Optionee's Service terminates. In the event that the Optionee dies after the
termination of the Optionee's Service but before the expiration of the
Optionee's Options, all or part of such Options may be exercised (prior to
expiration) by the Optionee's personal representatives, but only to the extent
that such Options had become exercisable before the Optionee's Service
terminated (or became exercisable as a result of the termination).

     (j) LEAVE OF ABSENCE. For purposes of Subsection (i) above, Service shall
be deemed to continue while the Optionee is on a bona fide leave of absence, if
such leave was approved by the Company in writing and if continued crediting of
Service for this purpose is expressly required by the terms of such leave or by
applicable law (as determined by the Company); provided, however, that, with
respect to ISOs, unless otherwise determined by the Committee in its discretion,
a leave of absence, change in status from an employee to an independent
contractor or other change in the employee-employer relationship shall
constitute a termination of Service if, and to the extent that, such leave of
absence, change in status or other change interrupts employment for the purposes
of Section 422(a)(2) of the U.S. Tax Code and the then applicable regulations
and revenue rulings under such Section.

     (k) DEATH OF OPTIONEE. If an Optionee dies while the Optionee is in
Service, then the Optionee's Options shall expire on the earlier of the
following dates:

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

          (ii) The date 12 months after the Optionee's death.

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

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

     (m) PROVISIONS APPLICABLE TO SECTION 162(m) OPTIONS. The Committee, in its
discretion, may determine whether an Option is to qualify as a Section 162(m)
Option. In the event that the Board of Directors or the Committee determines
that the Plan is to comply with Section 162(m) of the U.S. Tax Code, the Plan
and any Section 162(m) Option granted thereunder shall be subject to any
additional limitations set forth in Section 162(m) of the U.S. Tax Code
(including any amendment to Section 162(m) of the U.S. Tax Code) or any
regulations or rulings issued thereunder that are requirements for qualification
as performance-based compensation as described in Section 162(m)(4)(C) of the
U.S. Tax Code, and the Plan shall be deemed amended to the extent necessary to
conform to such requirements.

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SECTION 6. PAYMENT FOR SHARES.

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

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

     (c) EXERCISE/SALE. To the extent that a Share Option Agreement so provides,
and if Shares are publicly traded, payment may be made all or in part by the
delivery (on a form prescribed by the Company) of an irrevocable direction to a
securities broker approved by the Company to sell Shares and to deliver all or
part of the sales proceeds to the Company in payment of all or part of the
Exercise Price and any withholding taxes.

     (d) EXERCISE/PLEDGE. To the extent that a Share Option Agreement so
provides, and if Shares are publicly traded, payment may be made all or in part
by the delivery (on a form prescribed by the Company) of an irrevocable
direction to pledge Shares to a securities broker or lender approved by the
Company, as security for a loan, and to deliver all or part of the loan proceeds
to the Company in payment of all or part of the Exercise Price and any
withholding taxes.

SECTION 7. ADJUSTMENT OF SHARES.

     (a) GENERAL. In the event of a subdivision of the outstanding Shares, a
declaration of a dividend payable in Shares, a declaration of an extraordinary
dividend payable in a form other than Shares in an amount that has a material
effect on the Fair Market Value of the Shares, a consolidation of the
outstanding Shares into a lesser number of Shares, a recapitalization, a
reclassification or a similar occurrence, the Board of Directors or the
Committee shall make appropriate adjustments in one or more of (i) the number of
Shares available for future grants under Section 4, (ii) the number of Shares
covered by each outstanding Option or (iii) the Exercise Price under each
outstanding Option. With respect to Section 162(m) Options which are granted to
Section 162(m) Participants, no adjustment or action described in this Section 7
or in any other provision of the Plan shall be authorized to the extent that
such adjustment or action would cause such Option to fail to so qualify under
Section 162(m)(4)(C) of the U.S. Tax Code, or any successor provisions thereto.
No adjustment or action described in this Section 7 or in any other provision of
the Plan shall be authorized to the extent that such adjustment or action would
cause the Plan to violate Section 422(b)(1) of the U.S. Tax Code.

     (b) MERGERS AND CONSOLIDATIONS. In the event that the Company is a party to
a merger or consolidation, outstanding Options shall be subject to the agreement
of merger or consolidation, and the Board of Directors or the Committee shall
make appropriate adjustments

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in one or more of (i) the number of Shares available for future grants under
Section 4, (ii) the number of Shares covered by each outstanding Option or (iii)
the Exercise Price under each outstanding Option. Such agreement, without the
Optionees' consent, shall provide for one of the following:

          (i)   The continuation of such outstanding Options by the Company (if
     the Company is the surviving corporation);

          (ii)  The assumption of the Plan and such outstanding Options by the
     surviving corporation or its parent;

          (iii) The substitution by the surviving corporation or its parent of
     options with substantially the same terms for such outstanding Options; or

          (iv)  The cancellation of each outstanding Option after payment to the
     Optionee of an amount in cash or cash equivalents equal to (A) the Fair
     Market Value of the Shares subject to such Option at the time of the merger
     or consolidation minus (B) the Exercise Price of the Shares subject to such
     Option.

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

SECTION 8. SECURITIES LAW REQUIREMENTS.

     (a) GENERAL. Shares shall not be issued under the Plan unless the issuance
and delivery of such Shares comply with (or are exempt from) all applicable
requirements of law, including (without limitation) the U.S. Securities Act of
1933, as amended, the rules and regulations promulgated thereunder, all other
securities laws and regulations, and the regulations of any exchange or other
securities market on which the Company's securities may then be traded.

     (b) FINANCIAL REPORTS. The Company each year shall furnish to Optionees and
shareholders who have received Shares under the Plan its balance sheet and
income statement, unless such Optionees are key Employees whose duties with the
Company assure them access to equivalent information. Such balance sheet and
income statement need not be audited.

SECTION 9. NO RETENTION RIGHTS.

     Nothing in the Plan or in any right or Option granted under the Plan shall
confer upon the Optionee any right to continue in Service for any period of
specific duration or interfere with or

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otherwise restrict in any way the rights of the Company (or any Parent or,
Subsidiary employing or retaining the Optionee) or of the Optionee, which rights
are hereby expressly reserved by each, to terminate his or her Service at any
time and for any reason, with or without cause.

SECTION 10. DURATION AND AMENDMENTS.

     (a) TERM OF THE PLAN. The Plan, as set forth herein, shall become effective
on the date of its approval by the Company's shareholders. The Plan shall
terminate automatically 10 years after its adoption by the Board of Directors
and may be terminated on any earlier date pursuant to Subsection (b) below.

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

     (c) EFFECT OF AMENDMENT OR TERMINATION. No Options shall be granted and no
Shares shall be issued under the Plan after the termination thereof, except upon
exercise of an Option granted prior to such termination. The termination of the
Plan, or any amendment thereof, shall not affect any Share previously issued or
any Option previously granted under the Plan. No Option may be granted during
any period of suspension of the Plan, and in no event may any ISO be granted
under the Plan after the first to occur of (i) the expiration of ten years from
the date the Plan is originally adopted by the Board of Directors, or (ii) the
expiration of ten years from the date the Plan is originally approved by the
Company's stockholders.

SECTION 11. DEFINITIONS.

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

     (b) "AWARD LIMIT" shall mean 26,790,000 Shares, subject to adjustment
pursuant to Section 7.

     (c) "BOARD OF DIRECTORS" shall mean the Board of Directors of the Company,
as constituted from time to time.

     (d) "CHANGE IN CONTROL" shall mean:

          (i)   A transfer of the Company's equity securities to any person who
     was not a shareholder of the Company immediately prior to such transfer, if
     such person owns immediately after such transfer more than 50% of the
     voting power of the outstanding securities of the Company;

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          (ii)  The consummation of a merger or consolidation of the Company
     with or into another entity or any other corporate reorganization, if
     persons who were not shareholders of the Company immediately prior to such
     merger, consolidation or other reorganization own immediately after such
     merger, consolidation or other reorganization more than 50% of the voting
     power of the outstanding securities of each of (A) the continuing or
     surviving entity and (B) any direct or indirect parent corporation of such
     continuing or surviving entity; or

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

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

     (e) "COMMITTEE" shall mean the Executive Resource and Compensation
Committee of the Board of Directors, or another committee or subcommittee of the
Board of Directors, appointed as provided in Section 2(a).

     (f) "COMPANY" shall mean Chartered Semiconductor Manufacturing Ltd, a
company incorporated in the Republic of Singapore.

     (g) "CONSULTANT" shall mean any consultant or advisor (other than an
Employee or Outside Director) if (i) the consultant or advisor renders bona fide
services to the Company, a Parent or a Subsidiary or an Affiliated Company, (ii)
the services rendered by the consultant or adviser are not in connection with
the offer or sale of securities in a capital-raising transaction and do not
directly or indirectly promote or maintain a market for the Company's
securities, and (iii) the consultant or advisor is a natural person who has
contracted directly with the Company, a Parent or a Subsidiary or an Affiliated
Company, to render such services.

     (h) "DISABILITY" shall mean that the Optionee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment.

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

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

     (k) "FAIR MARKET VALUE" shall mean, as of any given date, the fair market
value of a Share, determined as follows:

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

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

     (l) "ISO" shall mean an employee incentive stock option described in
Section 422 of the U.S. Tax Code.

     (m) "NONSTATUTORY OPTION" shall mean a stock option (or portion thereof)
that is not designated as an ISO by the Committee, or which is designated as an
ISO by the Committee but fails to qualify as an incentive stock option within
the meaning of Section 422 of the U.S. Tax Code.

     (n) "OFFICER" shall mean any director or secretary or a person employed in
an executive capacity .

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

     (p) "OPTIONEE" shall mean an individual who holds an Option.

     (q) "OUTSIDE DIRECTOR" shall mean an individual who (i) is a member of the
Board of Directors or a member of the board of directors of a Parent, Subsidiary
or Affiliated Company and (ii) is not an Employee.

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

     (s) "PLAN" shall mean this Chartered Semiconductor Manufacturing Ltd Share
Option Plan 1999, as amended from time to time.

     (t) "SECTION 162(m) PARTICIPANT" shall mean any key Employee designated by
the Committee as a key Employee whose compensation for the fiscal year in which
the key Employee is so designated or a future fiscal year may be subject to the
limit on deductible compensation imposed by Section 162(m) of the U.S. Tax Code.

     (u) "SECTION 162(m) OPTION" shall mean an Option intended to qualify as
performance-based compensation as described in Section 162(m)(4)(C) of the U.S.
Tax Code.

     (v) "SERVICE" shall mean service as an Employee, Outside Director, or
Consultant.

     (w) "SHARE" shall mean one ordinary share, of par value Singapore $0.26, in
the capital of the Company, as adjusted in accordance with Section 7 (if
applicable).

                                       10
<PAGE>   14
     (x) "SHARE OPTION AGREEMENT" shall mean the agreement between the Company
and an Optionee which contains the terms, conditions and restrictions pertaining
to the Optionee's Option.

     (y) "SMP" means Silicon Manufacturing Partners Pte Ltd, a company
incorporated in Singapore and an associated company of the Company.

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

     (aa) "U.S. TAX CODE" shall mean the U.S. Internal Revenue Code of 1986, as
amended.

SECTION 12. EXECUTION.

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

                                             CHARTERED SEMICONDUCTOR
                                             MANUFACTURING LTD

                                             By:       /s/ BARRY WAITE
                                                --------------------------------
                                             Title: PRESIDENT & CEO

                                       11<PAGE>   1
                                                                     EXHIBIT 4.4

                   CHARTERED SEMICONDUCTOR MANUFACTURING LTD.

                        EMPLOYEE SHARE PURCHASE PLAN 2001

                       (AS ADOPTED EFFECTIVE 30 MAY, 2001)

<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
SECTION 1. PURPOSE OF THE PLAN                                                1

SECTION 2. ADMINISTRATION OF THE PLAN                                         1
     (a) Committee Composition                                                1
     (b) Committee Responsibilities                                           1

SECTION 3. ENROLLMENT AND PARTICIPATION                                       1
     (a) Offering Periods                                                     1
     (b) Enrollment                                                           1
     (c) Duration of Participation                                            1

SECTION 4. EMPLOYEE CONTRIBUTIONS                                             2
     (a) Frequency of Payroll Deductions                                      2
     (b) Amount of Payroll Deductions                                         2
     (c) Changing Contribution Rate                                           2
     (d) Discontinuing Payroll Deductions                                     2

SECTION 5. WITHDRAWAL FROM THE PLAN                                           2
     (a) Withdrawal                                                           2
     (b) Re-Enrollment After Withdrawal                                       3

SECTION 6. CHANGE IN EMPLOYMENT STATUS                                        3
     (a) Termination of Employment                                            3
     (b) Leave of Absence                                                     3
     (c) Death                                                                3

SECTION 7. PLAN ACCOUNTS AND PURCHASE OF SHARES                               3
     (a) Plan Accounts                                                        3
     (b) Purchase Price                                                       3
     (c) Number of Shares Purchased                                           4
     (d) Available Shares Insufficient                                        4
     (e) Issuance of Shares                                                   4
     (f) Unused Cash Balances                                                 5
     (g) Shareholder Approval                                                 5

SECTION 8. LIMITATIONS ON OWNERSHIP                                           5
     (a) Five Percent Limit                                                   5
     (b) U.S. Dollar Limit                                                    5
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>                                                                         <C>
SECTION 9. RIGHTS NOT TRANSFERABLE                                            6

SECTION 10. NO RIGHTS AS AN EMPLOYEE                                          6

SECTION 11. NO RIGHTS AS A SHAREHOLDER                                        6

SECTION 12. SECURITIES LAW REQUIREMENTS                                       7

SECTION 13. SHARES OFFERED UNDER THE PLAN                                     7
     (a) Authorized Shares                                                    7
     (b) Anti-Dilution Adjustments                                            7
     (c) Reorganizations                                                      7

SECTION 14. AMENDMENT OR DISCONTINUANCE                                       7

SECTION 15. DEFINITIONS                                                       8
     (a) "Board of Directors"                                                 8
     (b) "CDP"                                                                8
     (c) "Committee"                                                          8
     (d) "Company"                                                            8
     (e) "Compensation"                                                       8
     (f) "Corporate Reorganization"                                           8
     (g) "CPF"                                                                8
     (h) "Eligible Employee"                                                  8
     (i) "Fair Market Value"                                                  9
     (j) "Offering Period"                                                    9
     (k) "Parent"                                                             9
     (l) "Participant"                                                        9
     (m) "Participating Company"                                              9
     (n) "Plan"                                                               9
     (o) "Plan Account"                                                       9
     (p) "Purchase Price"                                                     9
     (q) "Share"                                                              9
     (r) "SMP Share Purchase Plan"                                           10
     (s) "Subsidiary"                                                        10
     (t) "U.S. Tax Code"                                                     10

SECTION 16. EXECUTION                                                        10
</TABLE>

                                       ii
<PAGE>   4
                   CHARTERED SEMICONDUCTOR MANUFACTURING LTD.
                      EMPLOYEE SHARE PURCHASE PLAN 2001

SECTION 1. PURPOSE OF THE PLAN.

     This Plan is effective as of 30 May 2001, having previously been adopted by
the Board of Directors and Shareholders of the Company. The purpose of the Plan
is to provide Eligible Employees with an opportunity to increase their
proprietary interest in the success of the Company by purchasing Shares from the
Company on favorable terms and to pay for such purchases through payroll
deductions. The Plan is intended to qualify under section 423 of the U.S. Tax
Code; however, the Company assumes no responsibility, and shall not be liable,
for tax consequences to any Participant in the event the Plan does not so
qualify.

SECTION 2. ADMINISTRATION OF THE PLAN.

     (a) COMMITTEE COMPOSITION. The Plan shall be administered by the Committee.
The Committee shall consist of two or more members appointed by and holding
office at the pleasure of the Board of Directors. The members of the Committee
may be, but need not be, members of the Board of Directors. Appointment of
Committee members shall be effected by way of a resolution of the Board of
Directors. Committee members may resign at any time by delivering written notice
to the Board of Directors. Vacancies in the Committee may be filled by the Board
of Directors.

     (b) COMMITTEE RESPONSIBILITIES. The Committee shall interpret the Plan and
make all other policy decisions relating to the operation of the Plan. The
Committee may adopt such rules, guidelines and forms as it deems appropriate to
implement the Plan. The Committee's determinations under the Plan shall be final
and binding on all persons.

SECTION 3. ENROLLMENT AND PARTICIPATION.

     (a) OFFERING PERIODS. While the Plan is in effect, two Offering Periods
shall commence in each calendar year. The Offering Periods shall consist of the
six-month periods commencing on each 1 March and 1 September.

     (b) ENROLLMENT. Any individual who, on the day preceding the first day of
an Offering Period, qualifies as an Eligible Employee may elect to become a
Participant in the Plan for such Offering Period by executing the enrollment
form prescribed for this purpose by the Committee. The enrollment form shall be
filed with the Company at the prescribed location not later than 30 days prior
to the commencement of such Offering Period.

     (c) DURATION OF PARTICIPATION. Once enrolled in the Plan, a Participant
shall continue to participate in the Plan until he or she ceases to be an
Eligible Employee, withdraws from the Plan under Section 5(a) or reaches the end
of the Offering Period in which his or her employee

                                       1
<PAGE>   5
contributions were discontinued under Section 4(d) or 8(b). A Participant who
discontinued employee contributions under Section 4(d) or withdrew from the Plan
under Section 5(a) may again become a Participant, if he or she then is an
Eligible Employee, by following the procedure described in Subsection (b) above.
A Participant whose employee contributions were discontinued automatically under
Section 8(b) shall automatically resume participation at the beginning of the
earliest Offering Period ending in the next calendar year, if he or she then is
an Eligible Employee.

SECTION 4. EMPLOYEE CONTRIBUTIONS.

     (a) FREQUENCY OF PAYROLL DEDUCTIONS. A Participant may purchase Shares
under the Plan solely by means of payroll deductions. Payroll deductions, as
designated by the Participant pursuant to Subsection (b) below, shall occur on
each payday during participation in the Plan.

     (b) AMOUNT OF PAYROLL DEDUCTIONS. An Eligible Employee shall designate on
the enrollment form the portion of his or her Compensation that he or she elects
to contribute for the purchase of Shares. Such portion shall be a whole
percentage of the Eligible Employee's Compensation, but not less than 1% nor
more than 10%.

     (c) CHANGING CONTRIBUTION RATE. A Participant may not change the rate of
payroll deduction during an Offering Period, except to discontinue contributions
pursuant to Subsection (d) below or to withdraw from the Plan pursuant to
Section 5(a). If a Participant wishes to change the rate of payroll deduction
effective upon the commencement of a subsequent Offering Period, he or she may
do so by filing a new enrollment form with the Company at the prescribed
location not later than 30 days prior to the commencement of such subsequent
Offering Period. The new contribution rate shall be a whole percentage of the
Eligible Employee's Compensation, but not less than 1% nor more than 10%.

     (d) DISCONTINUING PAYROLL DEDUCTIONS. If a Participant wishes to
discontinue employee contributions entirely, he or she may do so by filing a new
enrollment form with the Company at the prescribed location at any time. Payroll
deductions shall cease as soon as reasonably practicable after such form has
been received by the Company. In addition, employee contributions may be
discontinued automatically pursuant to Section 8(b). A Participant who has
discontinued employee contributions may resume such contributions during a
subsequent Offering Period, if such Participant is then an Eligible Employee, by
following the procedure under Section 3(b), subject to the requirements of
Section 3(c).

SECTION 5. WITHDRAWAL FROM THE PLAN.

     (a) WITHDRAWAL. A Participant may elect to withdraw from the Plan by filing
the prescribed form with the Company at the prescribed location at any time
before the last day of an Offering Period. As soon as reasonably practicable
thereafter, payroll deductions shall cease and the entire amount credited to the
Participant's Plan Account shall be refunded to him or her in cash, without
interest, after deducting from such amount any expenses incurred by the Company
in maintaining such account. No partial withdrawals shall be permitted.

                                       2
<PAGE>   6
     (c) RE-ENROLLMENT AFTER WITHDRAWAL. A former Participant who has withdrawn
from the Plan shall not be a Participant until he or she re-enrolls in the Plan
under Section 3(b), subject to the requirements of Section 3(c). Re-enrollment
may be effective only at the commencement of an Offering Period.

SECTION 6. CHANGE IN EMPLOYMENT STATUS.

     (a) TERMINATION OF EMPLOYMENT. Termination of employment as an Eligible
Employee for any reason, including death, shall be treated as an automatic
withdrawal from the Plan under Section 5(a). A transfer from one Participating
Company to another shall not be treated as a termination of employment.

     (b) LEAVE OF ABSENCE. For purposes of the Plan, employment shall not be
deemed to terminate when the Participant goes on a military leave, a sick leave
or another bona fide leave of absence, if the leave was approved by the Company
in writing. Employment, however, shall be deemed to terminate 90 days after the
Participant goes on a leave, unless a contract or statute guarantees his or her
right to return to work. Employment shall be deemed to terminate in any event
when the approved leave ends, unless the Participant immediately returns to
work.

     (c) DEATH. In the event of the Participant's death, the entire amount
credited to his or her Plan Account shall, after deducting from such amount any
expenses incurred by the Company in maintaining such account, be paid, without
interest, to a beneficiary designated by him or her for this purpose on the
prescribed form or, if none, to the Participant's estate. Such form shall be
valid only if it was filed with the Company at the prescribed location before
the Participant's death.

SECTION 7. PLAN ACCOUNTS AND PURCHASE OF SHARES.

     (a) PLAN ACCOUNTS. The Company shall maintain a Plan Account on its books
in the name of each Participant. Whenever an amount is deducted from the
Participant's Compensation under the Plan, such amount shall be credited to the
Participant's Plan Account. To the extent required by all applicable laws, all
amounts credited to Plan Accounts shall be held in trust for the Participants.
To the extent not so required, amounts credited to Plan Accounts may be
commingled with the Company's general assets and applied to general corporate
purposes. No interest shall be credited to Plan Accounts.

     (b) PURCHASE PRICE. The Purchase Price for each Share purchased at the
close of an Offering Period shall be the lower of:

          (i) 85% of the Fair Market Value of such Share on the last trading day
     in such Offering Period; or

          (ii) 85% of the Fair Market Value of such Share on the last trading
     day before the commencement of such Offering Period.

                                       3
<PAGE>   7
     Notwithstanding the foregoing, the Purchase Price for each Share shall in
no event be less than the par value of such Share.

     (c) NUMBER OF SHARES PURCHASED. As of the last day of each Offering Period,
each Participant shall, subject to the provisions of this Subsection (c), be
deemed to have elected to purchase the number of Shares calculated in accordance
with this Subsection (c), unless the Participant has previously elected to
withdraw from the Plan in accordance with Section 5(a). The amount then in the
Participant's Plan Account shall be divided by the Purchase Price, and the
resulting number of Shares, rounded down to the nearest whole Share, shall be
purchased from the Company with the funds in the Participant's Plan Account. The
foregoing notwithstanding and subject to the Share limitations set forth in
Sections 8(b) and 13(a), the maximum number of Shares that a Participant may
purchase in each Offering Period shall not exceed the number of Shares derived
by dividing US$12,500 by the Fair Market Value of a Share as of the commencement
of the Offering Period. The Committee may determine with respect to all
Participants that any quantity of Shares less than 10 whole Shares, as
calculated under this Subsection (c), shall be rounded down to the next lower
multiple of 10 whole Shares. As a condition to the purchase by the Participant
of Shares in accordance with this Subsection (c), the Participant may be
required to deliver to the Company, on or before the last day of each Offering
Period, a cheque or cash in the amount reasonably required by the Company to
satisfy the Company's withholding obligations under applicable tax laws arising
in connection with such purchase (unless the Company has no withholding
obligation in respect of the Participant or unless the Company and the
Participant shall have made other arrangements for deductions or withholding
from the Participant's salary, bonus or other income payable to the Participant
by the Company provided such arrangements satisfy the requirements of applicable
laws).

     (d) AVAILABLE SHARES INSUFFICIENT. In the event that the aggregate number
of Shares that all Participants elect to purchase during an Offering Period
exceeds the maximum number of Shares remaining available for issuance under
Section 13(a), then the number of Shares to which each Participant is entitled
shall be determined by multiplying the number of Shares available for issuance
by a fraction, the numerator of which is the number of Shares that such
Participant has elected to purchase and the denominator of which is the number
of Shares that all Participants have elected to purchase, rounded down to the
nearest whole Share. The Committee may determine with respect to all
Participants that any quantity of Shares less than 10 whole Shares, as
calculated under this Subsection (d), shall be rounded down to the next lower
multiple of 10 whole Shares.

     (e) ISSUANCE OF SHARES. Subject to such consents or other required action
of any competent authority under any regulations or enactments for the time
being in force as may be necessary and subject to the compliance with the terms
of the Plan and the Memorandum and Articles of Association of the Company, the
Company shall, as soon as practicable after the close of the applicable Offering
Period, allot the relevant Shares and despatch to CDP the relevant share
certificates by ordinary post or such other mode as the Committee may deem fit.
The Company shall, as soon as practicable after such allotment and where
required, apply to any stock exchange(s) on which the Shares are quoted or
listed for permission to deal in and for quotation of such Shares. Shares which
are allotted to a Participant at the end of an Offering Period shall be issued
in the name of CDP to the credit of the securities account of that Participant
maintained

                                       4
<PAGE>   8
with CDP, the securities sub-account maintained with a CDP Agent or the CPF
investment account maintained with a CPF agent bank.

     (f) UNUSED CASH BALANCES. Any amount remaining in the Participant's Plan
Account that is (1) less than the Purchase Price for 10 whole Shares (if the
Committee determines in its discretion to apply the rounding procedures
described in Sections 7(c) and 7(d) hereof), or (2) less than the Purchase Price
for a whole Share (if the Committee does not apply such rounding procedures),
shall be refunded to the Participant in cash, without interest, together with
any amount remaining in the Participant's Plan Account that represents the
Purchase Price for whole Shares that could not be purchased by reason of the
Share limitations set forth in Subsections (c) or (d) above, Section 8(b) or
Section 13(a), in each case after deducting from such amount any expenses
incurred by the Company in maintaining such account.

     (g) SHAREHOLDER APPROVAL. Any other provision of the Plan notwithstanding,
no Shares shall be purchased under the Plan unless and until the Company's
shareholders have approved the adoption of the Plan.

SECTION 8. LIMITATIONS ON OWNERSHIP.

     (a) FIVE PERCENT LIMIT. Any other provision of the Plan notwithstanding, no
Participant shall be granted a right to purchase Shares under the Plan if such
Participant, immediately after his or her election to purchase such Shares,
would own shares possessing more than 5% of the total combined voting power or
value of all classes of shares of the Company or any Parent or Subsidiary of the
Company. For purposes of this Subsection (a), the following rules shall apply:

          (i) Ownership of shares shall be determined after applying the
     attribution rules of section 424(d) of the U.S. Tax Code;

          (ii) Each Participant shall be deemed to own any shares that he or she
     has a right or option to purchase under this or any other plan; and

          (iii) Each Participant shall be deemed to have the right to purchase,
     with respect to each Offering Period under the Plan, the number of Shares
     derived by dividing US$12,500 by the Fair Market Value of Shares as of the
     commencement of such Offering Period.

     (b) U.S. DOLLAR LIMIT. Any other provision of the Plan notwithstanding, no
Participant shall be granted a right under the Plan which permits the
Participant's rights to purchase Shares under the Plan, together with other
rights or options to purchase Shares or other shares under all other employee
share purchase plans of the Company or any Parent or any Subsidiary subject to
Section 423 of the U.S. Tax Code, to accrue at a rate which exceeds US$25,000 of
the Fair Market Value of such Shares or other shares for each calendar year in
which the option is outstanding at any time. For the purpose of the limitation
imposed by this Subsection (b), (i) the right to purchase Shares or other shares
under a right or option accrues when the right or option (or any portion
thereof) first becomes exercisable during the calendar

                                       5
<PAGE>   9
year, (ii) the right to purchase Shares or other shares under a right or option
accrues at the rate provided in the right or option, but in no case may such
rate exceed US$25,000 of the Fair Market Value of such Shares or other shares
for any one calendar year, and (iii) a right to purchase Shares or other shares
which has accrued under one right granted pursuant to the Plan may not be
carried over to any other right or option. This limitation shall be applied in
accordance with Section 423(b)(8) of the U.S. Tax Code and the U.S. Treasury
Regulations thereunder.

     For purposes of this Subsection (b), the Fair Market Value of Shares which
are or may be purchased pursuant to the Plan shall be determined in each case as
of the beginning of the Offering Period in which such Shares are purchased, and
the Fair Market Value of shares which are or may be purchased pursuant to all
other employee share purchase plans of the Company or any Parent or any
Subsidiary subject to Section 423 of the U.S. Tax Code shall be determined in
each case at the time the option or right to purchase shares pursuant to such
plan is granted. Employee share purchase plans not described in section 423 of
the U.S. Tax Code shall be disregarded. If a Participant is precluded by this
Subsection (b) from purchasing additional Shares under the Plan, then his or her
employee contributions shall automatically be discontinued and shall resume at
the beginning of the earliest Offering Period ending in the next calendar year
(if he or she then is an Eligible Employee).

SECTION 9. RIGHTS NOT TRANSFERABLE.

     The rights of any Participant under the Plan (including without limitation
the right to acquire Shares), or any Participant's interest in moneys to which
he or she may be entitled under the Plan, shall not be transferable by voluntary
or involuntary assignment or by operation of law, or in any other manner other
than by beneficiary designation or the laws of descent and distribution. If a
Participant in any manner attempts to transfer, assign or otherwise encumber his
or her rights or interest under the Plan, other than by beneficiary designation
or the laws of descent and distribution, then such act shall be treated as an
election by the Participant to withdraw from the Plan under Section 5(a).

SECTION 10. NO RIGHTS AS AN EMPLOYEE.

     Nothing in the Plan or in any right granted under the Plan shall confer
upon the Participant any right to continue in the employ of a Participating
Company for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Participating Companies or of the
Participant, which rights are hereby expressly reserved by each, to terminate
his or her employment at any time and for any reason, with or without cause.

SECTION 11. NO RIGHTS AS A SHAREHOLDER.

     A Participant shall have no rights as a shareholder with respect to any
Shares that he or she may have a right to purchase under the Plan until such
Shares have been purchased on the last day of the applicable Offering Period.

                                       6
<PAGE>   10
SECTION 12. SECURITIES LAW REQUIREMENTS.

     Shares shall not be issued under the Plan unless the issuance and delivery
of such Shares comply with (or are exempt from) all applicable requirements of
law, including (without limitation) the U.S. Securities Act of 1933, as amended,
the rules and regulations promulgated thereunder, U.S. state securities laws and
regulations, and the regulations of any securities exchange or other securities
market on which the Company's securities may then be traded.

SECTION 13. SHARES OFFERED UNDER THE PLAN.

     (a) AUTHORIZED SHARES. Subject to adjustment pursuant to this Section 13,
the number of Shares available for purchase under the Plan shall be 10,000,000,
less the number of Shares that are purchased by participants under the SMP Share
Purchase Plan, on a Share-for-Share basis.

     (b) ANTI-DILUTION ADJUSTMENTS. The following shall be adjusted
proportionately by the Committee for any increase or decrease in the number of
outstanding Shares resulting from a subdivision or consolidation of Shares or
the payment of a share dividend, any other increase or decrease in such Shares
effected without receipt or payment of consideration by the Company, the
distribution of the shares of a Subsidiary to the Company's shareholders or a
similar event: (i) the aggregate number of Shares offered under the Plan; (ii)
the Share limitation per Offering Period described in Section 7(c); (iii) the
rounding procedures described in Sections 7(c) and 7(d) hereof; and (iv) the
price of Shares that any Participant has elected to purchase. No adjustment or
action described in this Section 13(b) or in any other provision of the Plan
shall be authorized to the extent that such adjustment or action would cause the
Plan to fail to satisfy the requirements of Section 423 of the U.S. Tax Code.

     (c) REORGANIZATIONS. Any other provision of the Plan notwithstanding,
immediately prior to the effective time of a Corporate Reorganization, the
Offering Period then in progress shall terminate and Shares shall be purchased
pursuant to Section 7, unless the Plan is continued or assumed by the surviving
corporation or its parent corporation. The Plan shall in no event be construed
to restrict in any way the Company's right to undertake a dissolution,
liquidation, merger, consolidation or other reorganization.

SECTION 14. AMENDMENT OR DISCONTINUANCE.

     The Board of Directors shall have the right to amend, suspend or terminate
the Plan at any time and from time to time, without notice. No right to purchase
Shares under the Plan may be granted during any period of suspension of the Plan
or after termination of the Plan. Except as provided in Section 13, any increase
in the aggregate number of Shares to be issued under the Plan shall be subject
to approval by a vote of the shareholders of the Company in accordance with
applicable law or regulation. In addition, any other amendment of the Plan shall
be subject to approval by a vote of the shareholders of the Company to the
extent required by an applicable law or regulation. In the event that the Board
of Directors terminates the Plan, any amount remaining in each Participant's
Plan Account shall be refunded to the Participant in cash, without interest,

                                       7
<PAGE>   11
after deducting from such amount any expenses incurred by the Company in
maintaining such account.

SECTION 15. DEFINITIONS.

     (a) "BOARD OF DIRECTORS" means the Board of Directors of the Company, as
constituted from time to time.

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

     (c) "COMMITTEE" means a committee of the Board of Directors, as described
in Section 2.

     (d) "COMPANY" means Chartered Semiconductor Manufacturing Ltd, a company
incorporated in Singapore.

     (e) "COMPENSATION" means (i) the total compensation paid in cash to a
Participant by a Participating Company, including salaries, wages, bonuses,
incentive compensation, commissions, overtime pay, shift premiums, in each case
before deducting any CPF contributions made by a Participant, plus (ii) any
pre-tax contributions made by the Participant under section 401(k) or 125 of the
U.S. Tax Code. "Compensation" shall exclude all non-cash items, moving or
relocation allowances, cost-of-living equalization payments, car allowances,
tuition reimbursements, imputed income attributable to cars or life insurance,
severance pay, fringe benefits, contributions or benefits received under
employee benefit plans, CPF contributions made by a Participating Company,
income attributable to the exercise of share options, and similar items. The
Committee shall determine whether a particular item is included in Compensation.

     (f) "CORPORATE REORGANIZATION" means:

          (i) The consummation of a merger or consolidation of the Company with
     or into any other entity or any other corporate reorganization; or

          (ii) The sale, transfer or other disposition of all or substantially
     all of the Company's assets or the complete liquidation or dissolution of
     the Company.

     (g) "CPF" means Central Provident Fund.

     (h) "ELIGIBLE EMPLOYEE" means any employee of a Participating Company who
meets both of the following requirements:

          (i) His or her customary employment is for more than five months per
     calendar year and for more than 20 hours per week; and

          (ii) He or she has been an employee of a Participating Company for not
     less than 6 months.

                                       8
<PAGE>   12
     The foregoing notwithstanding, an individual shall not be considered an
Eligible Employee if his or her participation in the Plan is prohibited by the
law of any country which has jurisdiction over him or her or if he or she is
subject to a collective bargaining agreement that does not provide for
participation in the Plan.

     (i) "FAIR MARKET VALUE" means the fair market value of a Share, determined
in the following order of priority:

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

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

     (j) "OFFERING PERIOD" means a six-month period with respect to which the
right to purchase Shares may be granted under the Plan, as determined pursuant
to Section 3(a).

     (k) "PARENT" means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company, if, at the time of the granting
of the right to purchase Shares under the Plan, each of the corporations other
than the Company owns shares possessing more than 50% of the total combined
voting power of all classes of shares in one of the other corporations in such
chain. A corporation that attains the status of a Parent on a date after the
adoption of the Plan shall be considered a Parent commencing as of such date.

     (l) "PARTICIPANT" means an Eligible Employee who elects to participate in
the Plan, as provided in Section 3(b).

     (m) "PARTICIPATING COMPANY" means (i) the Company and (ii) each present or
future Subsidiary designated by the Committee as a Participating Company.

     (n) "PLAN" means this Chartered Semiconductor Manufacturing Ltd Employee
Share Purchase Plan 2001, as amended from time to time.

     (o) "PLAN ACCOUNT" means the account established for each Participant
pursuant to Section 7(a).

     (p) "PURCHASE PRICE" means the price at which Participants may purchase
Shares under the Plan, as determined pursuant to Section 7(b).

     (q) "SHARE" means one ordinary share, of par value Singapore $0.26, in the
capital of the Company, as adjusted in accordance with Section 13 (if
applicable).

                                       9
<PAGE>   13
     (r) "SMP SHARE PURCHASE PLAN" means the Chartered Semiconductor
Manufacturing Share Purchase Plan for Employees of Silicon Manufacturing
Partners Pte Ltd, to be adopted in 2001 by the Company for the benefit of the
employees of Silicon Manufacturing Partners Pte Ltd, a company incorporated in
Singapore and an associated company of the Company.

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

     (t) "U.S. TAX CODE" means the U.S. Internal Revenue Code of 1986, as
amended.

SECTION 16. EXECUTION.

     To record the adoption of the Plan by the Board of Directors and
Shareholders of the Company, the Company has caused this Plan to be executed by
its duly authorized officer and to become effective as of 30 May 2001.

                                             CHARTERED SEMICONDUCTOR
                                             MANUFACTURING LTD

                                             By:    /s/ BARRY WAITE
                                                    ----------------------------
                                             Title: PRESIDENT/CEO
                                                    ----------------------------

                                       10

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