Document:

<PAGE>   1
                                                                    EXHIBIT 4.6

                            DATED 14TH DECEMBER, 2000

                       CHARTERED SILICON PARTNERS PTE LTD
                                   AS BORROWER

                    CHARTERED SEMICONDUCTOR MANUFACTURING LTD
                             EDB INVESTMENTS PTE LTD
                        AGILENT TECHNOLOGIES EUROPE B.V.
                                 AS SHAREHOLDERS

                                     - AND -

                      ABN AMRO BANK N.V., SINGAPORE BRANCH
                                    AS AGENT

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

                         THIRD SUPPLEMENTAL SHAREHOLDERS
                                   UNDERTAKING
                     (BEING SUPPLEMENTAL TO THE SHAREHOLDERS
                        UNDERTAKING DATED 1ST JULY, 1998
                               AS SUPPLEMENTED BY
              (1) THE FIRST SUPPLEMENTAL SHAREHOLDERS UNDERTAKING
                          DATED 16TH DECEMBER, 1998 AND
              (2) THE SECOND SUPPLEMENTAL SHAREHOLDERS UNDERTAKING
                            DATED 9TH NOVEMBER, 1999)

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

                                ALLEN & GLEDHILL,
                           36, ROBINSON ROAD, #18-01,
                                   CITY HOUSE,
                                SINGAPORE 068877.

<PAGE>   2

                                 C O N T E N T S

<TABLE>
<CAPTION>
CLAUSE       HEADING                                            PAGE
------       -------                                            ----
 <S>         <C>                                                <C>

  1.         INTERPRETATION                                       2

  2.         AMENDMENTS TO SHAREHOLDERS UNDERTAKING               2

  3.         REPRESENTATIONS AND WARRANTIES                       3

  4.         INCORPORATION                                        4

  5.         CONFIRMATION                                         4

  6.         GOVERNING LAW AND JURISDICTION                       4

</TABLE>
<PAGE>   3

     T H I S   T H I R D   S U P P L E M E N T A L   U N D E R T A K I N G
is made on 14th December, 2000  B E T W E E N:-

(1)  CHARTERED SILICON PARTNERS PTE LTD (the "Borrower");

(2)  CHARTERED SEMICONDUCTOR MANUFACTURING LTD, EDB INVESTMENTS PTE LTD and
     AGILENT TECHNOLOGIES EUROPE B.V. (together, the "Shareholders"); and

(3)  ABN AMRO BANK N.V., SINGAPORE BRANCH, as agent for and on behalf of the
     Banks defined below (in such capacity, the "Agent", which expression shall
     include any of its successors in such capacity),

and is supplemental to a Shareholders Undertaking (the "Shareholders
Undertaking") dated 1st July, 1998 made between (1) the Borrower, (2) Chartered
Semiconductor Manufacturing Ltd, EDB Investments Pte Ltd and Hewlett-Packard
Europe B.V., as shareholders, and (3) the Agent, as supplemented by (a) the
First Supplemental Shareholders Undertaking (the "First Supplemental
Undertaking") dated 16th December, 1998 made between the parties to the
Shareholders Undertaking and (b) the Second Supplemental Shareholders
Undertaking (the "Second Supplemental Undertaking") dated 9th November, 1999
made between (i) the Borrower, (ii) the Shareholders, (iii) Hewlett-Packard
Europe B.V., as retiring shareholder, and (iv) the Agent.

     W H E R E A S:-

(A)  Pursuant to a Credit Agreement (the "Credit  Agreement") dated 12th
March, 1998 made between (1) the Borrower, as borrower, (2) ABN AMRO
Bank  N.V., Singapore Branch, Bayerische Landesbank Girozentrale,
Singapore Branch, Citibank, N.A., Singapore Branch, Overseas Union Bank
Limited and The Sumitomo Bank, Limited, Singapore Branch, as arrangers,
(3) the Guarantor Banks named therein (the "Guarantor Banks"), as guarantor
banks, (4) the Lending Banks named therein (the "Lending  Banks"), as lending
banks, (5) the Agent, as agent, and (6) ABN AMRO Bank N.V., Singapore Branch,
as security trustee, the Guarantor Banks agreed to grant to the Borrower a
S$236,800,000 guarantee facility (the "Guarantee Facility") and the Lending
Banks agreed to grant to the Borrower a US$143,200,000 term loan facility (the
"Term Loan Facility"), upon the terms and subject to the conditions of the
Credit Agreement.

(B)  The Credit Agreement as amended by (1) a first supplemental agreement
(the "First Supplemental Agreement") dated 14th December, 1998 made between the
parties to the Credit Agreement, upon the terms and subject to the conditions of
the First Supplemental Agreement, and (2) a second supplemental agreement (the
"Second Supplemental Agreement") dated 9th November, 1999 made  between the
parties to the Credit Agreement, upon the terms and subject to the conditions of
the Second Supplemental Agreement, has been further amended  by a third
supplemental agreement (the "Third Supplemental Agreement") dated 14th
December 2000 made between the parties to the Credit Agreement,  upon the terms
and subject to the conditions of the Third Supplemental Agreement, on, inter
alia, the condition that the Borrower and the Shareholders deliver this
Supplemental Undertaking executed by each of them to the Agent.

     I T   I S   A G R E E D  as follows:

1.   INTERPRETATION

(A)  All terms and references used in this Supplemental Undertaking and which
     are defined or
<PAGE>   4
                                       2

construed in the Credit Agreement (as supplemented by the First Supplemental
Agreement, the Second Supplemental Agreement and the Third Supplemental
Agreement), the First Supplemental Agreement, the Second Supplemental Agreement,
the Third Supplemental Agreement, the Shareholders Undertaking (as supplemented
by the First Supplemental Undertaking and the Second Supplemental Undertaking),
the First Supplemental Undertaking and the Second Supplemental Undertaking but
are not defined or construed in this Supplemental Undertaking shall have the
same meaning and construction in this Supplemental Undertaking. All references
in this Supplemental Undertaking to the Credit Agreement shall be to the Credit
Agreement as amended, supplemented or modified by the First Supplemental
Agreement, the Second Supplemental Agreement and the Third Supplemental
Agreement. All references in this Supplemental Undertaking to the Shareholders
Undertaking shall be to the Shareholders Undertaking as amended, supplemented or
modified by the First Supplemental Undertaking and the Second Supplemental
Undertaking.

(B)  The headings in this Supplemental Undertaking are inserted for convenience
only and shall be ignored in construing this Supplemental Undertaking. Unless
otherwise stated, references to the "Clauses" are to be construed as references
to the clauses of this Supplemental Undertaking.

2.   AMENDMENTS TO SHAREHOLDERS UNDERTAKING

     Each of the Borrower, the Shareholders and the Agent agree that with effect
from the Effective Date (as defined in the Third Supplemental Agreement), the
Shareholders Undertaking shall be amended as follows:-

     (1)  Recital (A) to the Shareholders Undertaking shall be deleted in its
          entirety and substituted with the following new Recital:-

          "(A)     By a Credit Agreement (the Credit Agreement as amended by the
          First Supplemental Agreement (as defined below), the Second
          Supplemental Agreement (as defined below) and the Third Supplemental
          Agreement (as defined below), collectively, the "Credit Agreement")
          dated 12th March, 1998 made between (1) the Borrower, as borrower, (2)
          ABN AMRO Bank N.V., Singapore Branch, Bayerische Landesbank
          Girozentrale, Singapore Branch, Citibank, N.A., Singapore Branch,
          Overseas Union Bank Limited and The Sumitomo Bank, Limited, Singapore
          Branch, as arrangers, (3) the Guarantor Banks named therein (the
          "Guarantor Banks"), as guarantor banks, (4) the Lending Banks named
          therein (the "Lending Banks"), as lending banks, (5) the Agent, as
          agent, and (6) ABN AMRO Bank N.V., Singapore Branch (the "Security
          Trustee"), as security trustee, the Guarantor Banks agreed to grant to
          the Borrower a S$236,800,000 guarantee facility and the Lending Banks
          agreed to grant to the Borrower a US$143,200,000 term loan facility,
          upon the terms and subject to the conditions of the Credit
          Agreement.";

     (2)  Clause 1(A) of the Shareholders Undertaking shall be amended as
          follows:-

          (a)  by inserting the following new definitions:-

               ""Third Supplemental Agreement" means the third supplemental
               agreement dated, December 14, 2000 between the parties to the
               Credit Agreement, being supplemental to the Credit Agreement as
               supplemented by the First Supplemental Agreement and the Second
               Supplemental Agreement;"; and
<PAGE>   5
                                       3

               ""Trust Deed" means the trust deed dated 28th September, 2000
               made between (1) the Borrower and (2) the Security Trustee;";

               (b)  the definition of "Senior Indebtedness" shall be amended by
                    inserting the words "(which, for the avoidance of doubt,
                    excludes the Phase 2 Financing Documents (as defined in the
                    Trust Deed))" immediately after the words "Financing
                    Documents" appearing in the last line thereof; and

               (c)  the definition of "Total Indebtedness" shall be amended by
                    inserting the words "(which, for the avoidance of doubt,
                    excludes the Phase 2 Financing Documents (as defined in the
                    Trust Deed))" immediately after the words "Financing
                    Documents" appearing in the last line thereof;

          (3)  Clause 2(A)(2) of the Shareholders Undertaking shall be amended
               by substituting the words "in excess of 1:1" appearing in line 2
               thereof with the words "in excess of 2.6:1";

          (4)  Clause 2(A)(3) of the Shareholders Undertaking shall be amended
               by substituting the words "Clause 16(16)(b) or Clause 16(16)(c)"
               appearing in line 2 thereof with the words "Clause 16(16)(a) or
               Clause 16(16)(b)";

          (5)  Clause 5(A)(9) of the Shareholders Undertaking shall be amended
               as follows:-

               (a)  by deleting the words "or Potential Event of Default"
                    appearing in line 2 thereof; and

               (b)  by inserting the words "and is continuing" immediately after
                    the word "occurred" appearing in line 2 thereof;

          (6)  Clause 5(B)(2)(a) of the Shareholders Undertaking shall be
               amended by substituting the word "Singapore" appearing in line 4
               thereof with the words "the United States of America";

          (7)  Clause 5(B)(2)(c) of the Shareholders Undertaking shall be
               amended by substituting the word "Singapore" appearing in line 2
               thereof with the words "the United States of America";

          (8)  Clause 8(C)(2) of the Shareholders Undertaking shall be amended
               by substituting the words "paragraph (2)" appearing in line 1
               thereof with the words "paragraph (1) above"; and

          (9)  Clause 14(E) of the Shareholders Undertaking shall be amended by
               substituting the words "(now of 438B, Alexandra Road, #05-05,
               #05-07/12, Alexandra Technopark B, Singapore 119968, Attention:
               Legal Counsel)" appearing in lines 2 and 3 thereof with the words
               "(now of 438, Alexandra Road, #11-01/04, Alexandra Point,
               Singapore 119958, Attention: The Regional Legal Counsellor)".

3.   REPRESENTATIONS AND WARRANTIES

     Each of the Borrower and the Shareholders represents and warrants to and
for the benefit of the Agent that:-
<PAGE>   6
                                       4

          (1)  all action, conditions and things required to be taken, fulfilled
               and done (including the obtaining of any necessary consents, if
               applicable) in order (a) to enable it lawfully to enter into,
               exercise its rights and perform and comply with its obligations
               under this Supplemental Undertaking, (b) to ensure that those
               obligations are valid, legally binding and enforceable, and (c)
               to make this Supplemental Undertaking admissible in evidence in
               the courts of Singapore and the Netherlands have been taken,
               fulfilled and done;

          (2)  its entry into, exercise of its rights and/or performance of or
               compliance with its obligations under this Supplemental
               Undertaking do not and will not violate, or exceed any power or
               restriction granted or imposed by, (a) any law to which it is
               subject or (b) its Memorandum and Articles of Association;

          (3)  its obligations under this Supplemental Undertaking and the
               Shareholders Undertaking (as amended by this Supplemental
               Undertaking) are valid, binding and enforceable; and

          (4)  it is not in breach of any of its obligations under the
               Shareholders Undertaking.

4.   INCORPORATION

(A)  The Shareholders Undertaking and this Supplemental Undertaking shall be
read and construed as one document and this Supplemental Undertaking shall be
considered as part of the Shareholders Undertaking and, without prejudice to the
generality of the foregoing, where the context so allows, references in the
Shareholders Undertaking to "this Agreement", howsoever expressed, shall be read
and construed as references to the Shareholders Undertaking as amended, modified
or supplemented by the First Supplemental Undertaking, the Second Supplemental
Undertaking and this Supplemental Undertaking.

(B)  Except to the extent expressly amended by the provisions of this
Supplemental Undertaking, the terms and conditions of the Shareholders
Undertaking and all other instruments and agreements executed, delivered or
entered into thereunder or pursuant thereto are hereby confirmed and shall
remain in full force and effect.

5.   CONFIRMATION

     Each of the Shareholders hereby irrevocably and unconditionally consent to
the amendments to the provisions of the Credit Agreement in the manner set out
in the Third Supplemental Agreement and hereby confirm that the Shareholders
Undertaking remains in full force and effect and is binding on each of the
Shareholders and shall continue in full force and effect and be binding on each
of the Shareholders notwithstanding the amendments to the Credit Agreement in
the manner provided in the Third Supplemental Agreement.

6.   GOVERNING LAW AND JURISDICTION

(A)  This Supplemental Undertaking shall be governed by, and construed in
accordance with, the laws of Singapore.
<PAGE>   7
                                       5

(B)    For the benefit of the Agent and each Bank, all the parties irrevocably
agree that the courts of Singapore are to have jurisdiction to settle any
disputes which may arise out of or in connection with this Supplemental
Undertaking and that, accordingly, any legal action or proceedings arising out
of or in connection with this Supplemental Undertaking ("Proceedings") may be
brought in those courts and each of the Borrower and the Shareholders
irrevocably submits to the jurisdiction of those courts.

(C)    Nothing in this Clause shall limit the right of the Agent and/or any Bank
to take Proceedings against the Borrower or any of the Shareholders in any other
court of competent jurisdiction nor shall the taking of Proceedings in one or
more jurisdictions preclude the Agent and/or any Bank from taking Proceedings in
any other jurisdiction, whether concurrently or not.

(D)    Each of the Borrower and the Shareholders irrevocably waives any
objection which it may at any time have to stipulating the venue of any
Proceedings in any court referred to in this Clause and any claim that any such
Proceedings have been brought in an inconvenient forum.

(E)    ATE irrevocably appoints Agilent Technologies Singapore Pte Ltd (now of
438, Alexandra Road, #11-01/04, Alexandra Point, Singapore 119958, Attention:
The Regional Legal Counsellor) to receive, for it and on its behalf, service of
process in any Proceedings in Singapore. Such service shall be deemed completed
on delivery to the process agent (whether or not it is forwarded to and received
by ATE). If for any reason the process agent ceases to be able to act as such or
no longer has an address in Singapore, ATE irrevocably agrees to appoint a
substitute process agent acceptable to the Agent, and to deliver to the Agent a
copy of the new agent's acceptance of that appointment, within 30 days. Nothing
shall affect the right to serve process in any other manner permitted by law.

(F)    Each of the Borrower and the Shareholders irrevocably and generally
consents in respect of any Proceedings anywhere to the giving of any relief or
the issue of any process in connection with those Proceedings including, without
limitation, the making, enforcement or execution against any assets whatsoever
(irrespective of their use or intended use) of any order or judgment which may
be made or given in those Proceedings.

(G)    Each of the Borrower and the Shareholders irrevocably agrees that, should
the Agent or any Bank take any Proceedings anywhere (whether for an injunction,
specific performance, damages or otherwise), no immunity (to the extent that it
may at any time exist, whether on the grounds of sovereignty or otherwise) from
those Proceedings, from attachment (whether in aid of execution, before judgment
or otherwise) of its assets or from execution of judgment shall be claimed by it
or on its behalf or with respect to its assets, any such immunity being
irrevocably waived. Each of the Borrower and the Shareholders irrevocably agrees
that it and its assets are, and shall be, subject to such Proceedings,
attachment or execution in respect of its obligations under this Supplemental
Undertaking.
<PAGE>   8
                                       6

     I N  W I T N E S S  W H E R E O F  this Supplemental Undertaking has been
entered into on the date stated at the beginning.

The Shareholders

The Common Seal of                          )
CHARTERED SEMICONDUCTOR                     )
MANUFACTURING LTD                           )                       affixed seal
was hereunto affixed                        )
in the presence of:-                        )

         Sd. Lim Ming Seong                  Director
--------------------------------------------

         Sd. Nancy Tan See Sin               [Director]/Secretary
--------------------------------------------

60, Woodlands Industrial Park D,
Street 2,
Singapore 738406.

Fax Number: 360 4970
Attention: Legal Department

The Common Seal of                          )
EDB INVESTMENTS PTE LTD                     )                       affixed seal
was hereunto affixed                        )
in the presence of:-                        )

         Sd. Philip Yeo Liat Kok             Director
--------------------------------------------

         Sd. Ho Tze Wei Monica               [Director]/Secretary
--------------------------------------------

250, North Bridge Road,
#27-04, Raffles City Tower,
Singapore 179101.

Fax Number: 3362503
Attention: General Manager
Signed, Sealed and Delivered                )
by       Sd. Antoine Pierre Chavan          )
   -----------------------------------------
<PAGE>   9
                                       7

for and on behalf of                        )                       affixed seal
AGILENT TECHNOLOGIES EUROPE B.V.            )
in the presence of:- Sd.Anne Jaquenod       )

Startbaan  16,
1187  XR  Amstelveen - Postbus 412
1180  AK  Amstelveen
The Netherlands.

with copy to:-

European Legal Counsel
Agilent Technologies Europe B.V.,
Meyrin Branch,
39, rue de Veyrot,
CH-1217 Meyrin 1/Switzerland.

Fax Number: 41 22 780 6952
Attention: The European Legal Counsel

The Borrower

The Common Seal of                          )
CHARTERED SILICON PARTNERS PTE LTD          )                       affixed seal
was hereunto affixed                        )
in the presence of:-                        )

         Sd. Chia Song Hwee                 Director
--------------------------------------------

         Sd. Nancy Tan See Sin              [Director]/Secretary
--------------------------------------------

60, Woodlands Industrial Park D,
Street 2,
Singapore 738406.

Fax Number: 360 4970
Attention: Legal Department
<PAGE>   10
                                       8

The Agent

Signed, Sealed and Delivered by             )
Ronald Low and Paul Hodgson as              ) Sd. Ronald Low
attorneys for and on behalf of              )                       affixed seal
ABN AMRO BANK N.V.,                         )
 SINGAPORE BRANCH                           ) Sd. Paul Hodgson
in the presence of:- Pauline Low            )

                                              Sd. Pauline Low

63, Chulia Street, 5th Floor,
Singapore 049514.

Fax Number: 536 7816
Telex Number: RS 24396
Attention: Ms Sally Loh / Ms Patricia Teo<PAGE>   1
                                                                     EXHIBIT 4.8

                            DATED 14TH DECEMBER, 2000

                       CHARTERED SILICON PARTNERS PTE LTD
                                   AS BORROWER

                        AGILENT TECHNOLOGIES EUROPE B.V.
                    CHARTERED SEMICONDUCTOR MANUFACTURING LTD
                             EDB INVESTMENTS PTE LTD
                                 AS SHAREHOLDERS

                                     - AND -

                      ABN AMRO BANK N.V., SINGAPORE BRANCH
                               AS SECURITY TRUSTEE

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

                            SHAREHOLDERS UNDERTAKING

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

                                ALLEN & GLEDHILL,
                           36, ROBINSON ROAD, #18-01,
                                   CITY HOUSE,
                                SINGAPORE 068877.

<PAGE>   2

                                 C O N T E N T S

<TABLE>
<CAPTION>

CLAUSE          HEADING                                       PAGE
------          -------                                       ----
<S>             <C>                                           <C>
   1.           INTERPRETATION                                  2

   2.           UNDERTAKINGS BY SHAREHOLDERS                    4

   3.           DECLARATION OF TRUST                            6

   4.           SUBORDINATION                                   6

   5.           AGREEMENT BY BORROWER AND SHAREHOLDERS          7

   6.           REPRESENTATIONS AND WARRANTIES                  8

   7.           UNDERTAKINGS                                   10

   8.           PAYMENTS                                       12

   9.           NATURE OF RIGHTS AND OBLIGATIONS               14

  10.           EXPENSES                                       15

  11.           BENEFIT OF AGREEMENT                           15

  12.           WAIVERS                                        17

  13.           COMMUNICATIONS                                 17

  14.           PARTIAL INVALIDITY                             17

  15.           GOVERNING LAW AND JURISDICTION                 17
</TABLE>
<PAGE>   3

          T H I S  A G R E E M E N T  is made on 14th December, 2000
B E T W E E N:-

(1)       CHARTERED SILICON PARTNERS PTE LTD  (the "Borrower");

(2)       AGILENT TECHNOLOGIES EUROPE B.V. ("ATE"), CHARTERED SEMICONDUCTOR
          MANUFACTURING LTD ("CSM") and EDB INVESTMENTS PTE LTD ("EDBI"); and

(3)       ABN AMRO BANK N.V., SINGAPORE BRANCH, in its capacity as security
          trustee for itself and the Secured Parties defined below (in such
          capacity, the "Security Trustee").

          W H E R E A S:-

(A)       By a Credit Agreement (the "Credit Agreement") dated 28th September,
2000 made between (1) the Borrower, as borrower, (2) ABN AMRO Bank N.V.,
Singapore Branch, Citibank, N.A., Singapore, Overseas Union Bank Limited, The
Sumitomo Bank, Limited, Danske Bank A/S, Industrial And Commercial Bank Of
China, Singapore Branch, and Commerzbank Aktiengesellschaft, Singapore Branch,
as lead arrangers, (3) The Bank of Tokyo-Mitsubishi, Ltd., Singapore Branch, The
Sanwa Bank Limited, Singapore Branch, The Industrial Bank of Japan, Limited,
Singapore Branch, The Norinchukin Bank, Singapore Branch, and Credit Lyonnais,
Singapore Branch, as arrangers, (4) The HongKong and Shanghai Banking
Corporation Limited, as co-arranger, (5) Bayerische Landesbank Girozentrale,
Singapore Branch, as lead manager, (6) Westdeutsche Landesbank Girozentrale,
Singapore Branch, as manager, (7) the Guarantor Banks named therein, as
guarantor banks, (8) the Lending Banks named therein, as lending banks, (9) ABN
AMRO Bank N.V., Singapore Branch, as agent, and (10) the Security Trustee, as
security trustee, (a) the Guarantor Banks agreed to grant a S$240,000,000
guarantee facility or a US$140,000,000 term loan facility to the Borrower and
(b) the Lending Banks agreed to grant a US$680,000,000 term loan facility to the
Borrower, upon the terms and subject to the conditions of the Credit Agreement.

(B)  (1)  CSM is the legal and beneficial owner of 51 per cent. of the issued
shares in the capital of the Borrower.

     (2)  EDBI is the legal and beneficial owner of 19 per cent. of the
issued shares in the capital of the Borrower.

     (3)  ATI is the legal and beneficial owner of 100 per cent. of the
issued shares in the capital of Agilent Technologies World Trade, Inc. ("ATWT")
and ATWT is the legal and beneficial owner of 100 per cent. of the issued shares
in the capital of ATE and ATE is the legal and beneficial owner of 30 per cent.
of the issued shares in the capital of the Borrower.

(C)       The Borrower may not make its request for the making of an Advance (as
defined in the Credit Agreement) or for the issuance of the EDB Guarantee (as
defined in the Credit Agreement) unless and until, inter alia, the Security
Trustee has received this Agreement, duly executed by the Borrower and each of
the Shareholders defined below.

(D)       Each of the Shareholders (as defined below) (after giving due
consideration to the terms and conditions of the Credit Agreement and satisfying
itself that there are reasonable grounds for believing that the entry into by it
of this Agreement will benefit it) has agreed to enter into this Agreement and
give the undertakings provided in this Agreement in consideration of the
Guarantor Banks making available to

<PAGE>   4

                                       2

the Borrower the guarantee and term loan facility referred to in Recital (A)
above and the Lending Banks making available to the Borrower the term loan
facility referred to in Recital (A) above.

          I T  I S  A G R E E D  as follows:-

1.        INTERPRETATION

(A)       Definitions: In this Agreement, except to the extent that the context
          requires otherwise:-

          "ATI Entities" means ATI and any corporation which is at least 99 per
          cent. owned (whether directly or indirectly) by ATI and "ATI Entity"
          means any one of them;

          "Discharge Date" means the date on which the Senior Indebtedness has
          been discharged in full and on which the Borrower and the Shareholders
          cease to be under any liability to the Security Trustee and the
          Secured Parties under or in connection with the Financing Documents;

          "Equity Commitment Percentage" means:-

          (1)  in relation to CSM, 51/100;

          (2)  in relation to EDBI, 19/100; and

          (3)  in relation to ATE, 30/100;

          "Excluded Transaction" means any genuine and good faith commercial
          transaction entered into between the Borrower and any one or more of
          the Shareholders which is not primarily financial in nature and is
          contemplated under the Joint Venture Agreement;

          "Joint Venture Agreement" has the meaning ascribed to it in Clause
          1(A) of the Credit Agreement;

          "Scheduled Completion Date" means 31st December, 2001;

          "Secured Parties" means all parties for the time being to the Credit
          Agreement other than the Borrower (and includes their respective
          successors and assigns);

          "Security Trustee" includes its successors in title and assigns and
          any company with which it may amalgamate and all other persons for the
          time being the security trustee for itself and the Secured Parties
          under this Agreement;

          "Senior Indebtedness" means all sums (whether principal, interest, fee
          or otherwise) which are or at any time may be or become due from or
          owing by the Borrower to the Security Trustee and/or the Secured
          Parties (or any of them), whether actually or contingently, under or
          in connection with, or which the Borrower has covenanted to pay or
          discharge under or pursuant to, any of the Financing Documents (which,
          for the avoidance of doubt, excludes the Phase 1 Financing Documents
          (as defined in the Trust Deed));

          "Shareholder Funding" means:-
<PAGE>   5

                                       3

          (1)  subscription moneys paid by any Shareholder for shares in the
               Borrower for which that Shareholder has subscribed (and which
               have not been returned to that Shareholder); or

          (2)  loans made by any Shareholder to the Borrower which are
               subordinated to the Senior Indebtedness in accordance with this
               Agreement;

          "Shareholders" means ATE, CSM and EDBI (and includes their respective
          successors and permitted assignees and transferees);

          "Subordinated Indebtedness" means all sums made or to be made
          available by the Shareholders (or any of them) to the Borrower under
          or in connection with this Agreement (including, without limitation,
          under Clause 2);

          "Termination Date" means, in relation to a Shareholder, the earlier of
          (1) the date on which that Shareholder has fulfilled all its
          obligations under Clause 2(A) and (2) the date on which all
          Shareholder Funding provided by it, if any, in accordance with this
          Agreement has been converted into shares in the capital of the
          Borrower;

          "Threshold Production Date" means the date on which the Plant achieves
          a production rate of an aggregate of 9,000 wafer starts per month;

          "Threshold Production Percentage" means:-

          (1)  in relation to CSM, 70/100; and

          (2)  in relation to ATE, 30/100;

          "Trust Deed" means the trust deed dated 28th September, 2000 made
          between (1) the Borrower and (2) the Security Trustee, being the Trust
          Deed referred to in the Credit Agreement; and

          "Total Indebtedness" means, at any particular time, all sums (whether
          principal, interest, fee or otherwise) which are then due from or
          owing by the Borrower to the Security Trustee and the Secured Parties,
          whether actually or contingently, under or in connection with, any of
          the Financing Documents (which, for the avoidance of doubt, excludes
          the Phase 1 Financing Documents (as defined in the Trust Deed)) to
          which the Borrower is a party.

(B)       Construction: All terms and references used in this Agreement and
which are defined or construed in the Credit Agreement but are not defined or
construed in this Agreement shall have the same meaning and construction in this
Agreement. The provisions of Clause 1(C) of the Credit Agreement shall apply to
this Agreement as though they are set out in full in this Agreement (mutatis
mutandis) except that references to the Credit Agreement are to be construed as
references to this Agreement. All references in this Agreement to a Financing
Document include that Financing Document as amended, modified or supplemented
from time to time and any document which amends, modifies or supplements that
Financing Document.

(C)       Miscellaneous: The headings in this Agreement are inserted for
convenience only and shall be ignored in construing this Agreement. Unless the
context otherwise requires, words denoting the singular number only shall
include the plural and vice versa. References to "Clauses" are to be construed
as

<PAGE>   6

                                       4

references to the clauses of this Agreement. Any reference to a sub-Clause or a
paragraph is to a sub-Clause or paragraph of the Clause in which such reference
appears.

2.        UNDERTAKINGS BY SHAREHOLDERS

(A) (1) Shareholders Support: In consideration of the Guarantor Banks agreeing,
at the request of the Shareholders, to make available to the Borrower the
guarantee and term loan facility referred to in Recital (A) above and the
Lending Banks agreeing, at the request of the Shareholders, to make available to
the Borrower the term loan facility referred to in Recital (A) above and/or the
Secured Parties (or any of them) acting under or in connection with the Credit
Agreement:-

          (a)  Equity Support: each Shareholder shall (without demand by the
               Borrower, the Security Trustee or any Secured Party) severally
               provide Shareholder Funding to the Borrower by not later than
               31st March, 2001 an amount equal to its Equity Commitment
               Percentage of S$720,000,000 (taking into account all Shareholder
               Funding which have been provided by the Shareholders on or before
               the date of this Agreement); and

          (b)  DSCR: if, on any Calculation Date, there is a breach by the
               Borrower of its obligations under Clause 16(A)(15)(a) or Clause
               16(A)(15)(b) of the Credit Agreement, each Shareholder shall
               (without demand by the Borrower, the Security Trustee or any
               Secured Party) severally provide Shareholder Funding to the
               Borrower on that Calculation Date in an amount equal to its
               Equity Commitment Percentage of the lower of (i) the amount (as
               determined by the Security Trustee) to enable the Borrower to
               meet any shortfall in its ability to meet all payments referred
               to in component "B" of the definition of DSCR falling due during
               the next succeeding Calculation Period commencing on that
               Calculation Date and (ii) the amount of S$720,000,000 less the
               aggregate amount of Shareholder Funding immediately prior to the
               provision of Shareholder Funding by that Shareholder on that
               Calculation Date.

     (2)  Completion Guarantee: In consideration of the Guarantor Banks
agreeing, at the request of CSM and ATE, to make available to the Borrower the
guarantee and term loan facility referred to in Recital (A) above and the
Lending Banks agreeing, at the request of CSM and ATE, to make available to the
Borrower the term loan facility referred to in Recital (A) above and/or the
Secured Parties (or any of them) acting under or in connection with the Credit
Agreement:-

          (a)  subject to sub-paragraph (b) below, (i) each of CSM and ATE
               agrees to procure that the Borrower will not abandon the Project
               and to procure that the Threshold Production Date is achieved by
               not later than the Scheduled Completion Date and (ii) (and
               without prejudice to the provisions of sub-paragraph (i) above)
               each of CSM and ATE agrees to take all steps necessary to ensure
               that the Threshold Production Date is achieved by not later than
               the Scheduled Completion Date; and

          (b)  any payment obligation of each of CSM and ATE arising under
               sub-paragraph (a) above shall be limited to its Threshold
               Production Percentage of the total amount payable by CSM and ATE
               provided always that the maximum aggregate liability of CSM and
               ATE at any time under this paragraph (2) shall not exceed the
               Total Indebtedness at that time.
<PAGE>   7
                                       5

(B)       Termination: (1) The Shareholders' obligations under
sub-Clause (A)(1)(a) above shall terminate on the date falling on the earlier of
(a) the date on which the Shareholders have provided their respective Equity
Commitment Percentages of the Shareholder Funding in an aggregate amount of
S$720,000,000 in accordance with the provisions of this Agreement and (b) the
date on which the Senior Indebtedness has been discharged in full and no amount
remains to be lent to or remains payable by the Borrower under the Financing
Documents.

     (2)  The Shareholders' obligations under sub-Clause (A)(1)(b) above shall
terminate on the date on which the Senior Indebtedness has been discharged in
full and no amount remains to be lent to or remains payable by the Borrower
under the Financing Documents.

     (3)  Each of CSM's and ATE's obligations under sub-Clause (A)(2) above
shall terminate on the date falling on the earlier of (a) the date on which the
Threshold Production Date has been reached and (b) the date on which the Senior
Indebtedness has been discharged in full and no amount remains to be lent to or
remains payable by the Borrower under the Financing Documents.

(C)       Obligations Unconditional: The obligations of the Shareholders under
this Clause are unconditional and absolute, irrespective of (1) (in the case of
CSM and ATE only) any event, however fundamental, outside the control of the
Borrower, CSM or ATE or any other person preventing the Borrower from achieving
the Threshold Production Date by the Scheduled Completion Date, (2) any
winding-up of the Borrower, (3) any Event of Default or action taken by the
Security Trustee or any Secured Party under the Financing Documents or any
enforcement of any security constituted by any Financing Document, (4) whether
the Project or the business of the Borrower is being carried on by any receiver,
judicial manager or other person and (5) any other circumstances whatsoever.

(D)       Subscription Procedures: (1) The Borrower and each Shareholder shall
do all such things as may be necessary on their part for the provision of
Shareholder Funding required pursuant to this Agreement.

     (2)  If for any reason whatsoever (including, without limitation, the
winding-up of the Borrower or failure of the Borrower to issue shares or to
accept payment), a Shareholder does not or cannot provide Shareholder Funding,
that Shareholder will nevertheless, at such times as are specified in this
Clause, pay to the Borrower the amount it would otherwise have been obliged to
pay by way of Shareholder Funding, which shall be deemed to discharge its
obligation to provide that Shareholder Funding.

     (3)  If a Shareholder makes a payment under paragraph (2), the Borrower
will be liable (on the same terms and conditions) to that Shareholder for the
amount of the payment as if it had constituted Shareholder Funding by way of
subscription moneys for shares or subordinated loans (as appropriate).

(E)       Subordinated Loans: If the Shareholders' obligations under this
Clause are fulfilled by means of loans to the Borrower (whether from any of or
all the Shareholders or from some other party), each of the Borrower and the
Shareholders agrees that such loans shall:-

          (1)  be unsecured;

          (2)  not be subject to any payment of interest until after the
               Discharge Date (although interest may accrue on it prior to the
               Discharge Date); and

          (3)  be subordinated to the Senior Indebtedness in the manner set out
               in this Agreement.
<PAGE>   8
                                       6

3.        DECLARATION OF TRUST

          The Shareholders each acknowledges that the Security Trustee holds the
benefit of this Agreement as agent and trustee for the Secured Parties.

4.        SUBORDINATION

(A)       Subordination: The Shareholders and the Borrower hereby agree with and
undertake to the Security Trustee and each of the Secured Parties that,
notwithstanding anything to the contrary contained in any agreement or other
document constituting or evidencing the Subordinated Indebtedness, before the
Discharge Date the Subordinated Indebtedness and the rights and claims of the
Shareholders in relation to the Subordinated Indebtedness are subordinated to
the Senior Indebtedness and the respective rights and claims of the Secured
Parties in relation to the Senior Indebtedness and accordingly, subject as
provided in this Agreement, payments of any amount of the Subordinated
Indebtedness (whether in the event of the winding-up of the Borrower or
otherwise) are conditional upon all of the Senior Indebtedness having first been
fully satisfied and discharged and no payment of any amount of the Subordinated
Indebtedness which, but for this Agreement, would otherwise fall due for payment
will fall so due, and instead such payment will fall due only if and when the
Senior Indebtedness has been fully satisfied and discharged and, if the
Subordinated Indebtedness or any part thereof is paid by or on behalf of the
Borrower to any Shareholder, that payment shall be forthwith paid over by that
Shareholder to the Security Trustee.

(B)       Turnover: Without prejudice to the provisions of sub-Clause (A)
above, if any amount of Subordinated Indebtedness is discharged or purported to
be discharged by payment, repayment, prepayment, set-off or in any other manner
in contravention of sub-Clause (A) above or Clause 5 (and, for the avoidance of
doubt, any payment of consideration, discount or benefit given or credit terms
granted under any of the Excluded Transactions shall be deemed not to be a
discharge or purported discharge of any part of the Subordinated Indebtedness),
the relevant Shareholder shall:-

          (1)  (if the Shareholder actually receives the amount discharged or
               purported to be discharged) immediately pay it to the Security
               Trustee for application towards the Senior Indebtedness; and

          (2)  (if the Shareholder does not, as a result of discharge by set-off
               or otherwise, actually receive the amount discharged or purported
               to be discharged) pay to the Security Trustee an amount equal to
               that discharged or purported to be discharged.

(C)       Application: Any amount received by the Security Trustee from any of
the Shareholders, or any person on its behalf, under sub-Clause (A) or (B) above
shall be applied in the following manner and order:-

          (1)  first, in or towards payment of any costs, charges and expenses
               incurred by the Security Trustee then due and payable under this
               Agreement and the other Financing Documents;

          (2)  secondly, in or towards payment of the Senior Indebtedness (and
               in the event that such sums are insufficient to satisfy in full
               the Senior Indebtedness, such sums shall be paid to the Secured
               Parties in proportion to their respective shares of the Senior
               Indebtedness at the time of payment); and
<PAGE>   9
                                       7

          (3)  thirdly, in payment of any surplus to that Shareholder or any
               other person lawfully entitled thereto.

5.        AGREEMENT BY BORROWER AND SHAREHOLDERS

(A)       By Borrower: The Borrower agrees and undertakes that prior to the
Discharge Date, it shall not, without the prior consent in writing of the
Security Trustee and the Secured Parties:-

          (1)  make any loans or advances, whether directly or indirectly, to
               any of the Shareholders or provide any guarantee, indemnity or
               security for or in connection with any indebtedness or
               liabilities of any of the Shareholders or otherwise enter into
               any transactions with any of the Shareholders other than (a) any
               transaction on arm's length commercial terms and for valuable
               consideration or (b) any Excluded Transaction;

          (2)  secure all or any part of the Subordinated Indebtedness;

          (3)  redeem, purchase or otherwise acquire any of the Subordinated
               Indebtedness;

          (4)  repay or prepay any, or pay any interest, fees or commissions
               (but without prejudice to accrual thereof) on, or by reference
               to, any of the Subordinated Indebtedness otherwise than in
               accordance with the terms of this Agreement; or

          (5)  take or omit to take any action whereby the subordination of the
               Subordinated Indebtedness or any part thereof to the Senior
               Indebtedness may be terminated, impaired or adversely affected.

(B)       By Shareholders: Except as otherwise expressly provided in this
Agreement, none of the Shareholders shall, without the prior consent in writing
of the Security Trustee and the Secured Parties, prior to the Discharge Date:-

          (1)  ask, demand, sue for, take or receive, directly or indirectly,
               whether by exercise of set-off, counterclaim or in any other
               manner, or recover or enforce payment of any Subordinated
               Indebtedness (provided that, for the avoidance of doubt, nothing
               under this paragraph (1) shall prohibit any asking, demand, suit
               for, taking or receipt, or recovery or enforcement of, any
               payment due by the Borrower under any of the Excluded
               Transactions);

          (2)  take any security from the Borrower or any other person in
               respect of any Subordinated Indebtedness and any security taken
               notwithstanding the undertaking in this paragraph (2) shall be
               held by the relevant Shareholder in trust for the Security
               Trustee;

          (3)  make or enforce any claim or right against the Borrower or prove
               in competition with the Security Trustee or any Secured Party in
               respect of the performance of any obligation under this
               Agreement;

          (4)  assign, transfer, sell, charge or purport to assign, transfer,
               sell, charge or otherwise dispose or purport to dispose of the
               whole or any part of or any
<PAGE>   10
                                       8

               interest in any rights which it may from time to time and for the
               time being have against the Borrower in respect of the
               Subordinated Indebtedness; or

          (5)  take or omit to take any action whereby the subordination of the
               Subordinated Indebtedness or any part thereof to the Senior
               Indebtedness may be terminated, impaired or adversely affected.

6.        REPRESENTATIONS AND WARRANTIES

(A)       By Shareholders: Each of the Shareholders severally represents and
warrants to and for the benefit of the Security Trustee and each of the Secured
Parties that:-

          (1)  Status: it is a company duly incorporated and validly existing
               under the laws of Singapore (in the case of CSM and EDBI) or the
               Netherlands (in the case of ATE), and has the power and authority
               to own its assets and to conduct the business which it conducts
               and/or proposes to conduct;

          (2)  Powers: it has the power to enter into, exercise its rights and
               perform and comply with its obligations under this Agreement;

          (3)  Authorisations and Consents: all action, conditions and things
               required to be taken, fulfilled and done (including the obtaining
               of any necessary consents) in order (a) to enable it lawfully to
               enter into, exercise its rights and perform and comply with its
               obligations under this Agreement, (b) to ensure that those
               obligations are valid, legally binding and enforceable, and (c)
               to make this Agreement admissible in evidence in the courts of
               Singapore and the Netherlands have been taken, fulfilled and
               done;

          (4)  Non-Violation of Laws: its entry into, exercise of its rights
               and/or performance of or compliance with its obligations under
               this Agreement do not and will not violate, or exceed any power
               or restriction granted or imposed by, (a) any law to which it is
               subject or (b) its Memorandum and Articles of Association;

          (5)  Obligations Binding: its obligations under this Agreement are
               valid, binding and enforceable;

          (6)  Non-Violation of Other Agreements: its entry into, exercise of
               its rights and/or performance of or compliance with its
               obligations under this Agreement do not and will not violate, to
               an extent or in a manner which has or will have a material
               adverse effect on it, any agreement to which it is a party or
               which is binding on it or its assets;

          (7)  Litigation: no litigation, arbitration or administrative
               proceeding is current or pending (a) to restrain the entry into,
               exercise of its rights under and/or performance or enforcement of
               or compliance with its obligations under this Agreement or (b)
               which has or will have a material adverse effect on it;

          (8)  Winding-up: no meeting has been convened for its winding-up or
               for the appointment of a receiver, trustee, judicial manager or
               similar officer of it, its assets or any of them, no such step is
               intended by it and, so far as it is aware, no petition,
               application or the like is outstanding for its winding-up or for
               the
<PAGE>   11
                                       9

               appointment of a receiver, trustee, judicial manager or similar
               officer of it, its assets or any of them;

          (9)  No Default: as far as it is aware after having made all due and
               proper enquiries, no Event of Default has occurred and is
               continuing, and it is not in breach of or default under any
               agreement to an extent or in a manner which has or will have a
               material adverse effect on it; and

          (10) Repetition: each of the above representations and warranties will
               be correct and complied with in all material respects at all
               times up to the Termination Date as if repeated then by reference
               to the then existing circumstances.

(B)       By CSM: CSM further represents and warrants to and for the benefit of
the Security Trustee and each of the Secured Parties that:-

          (1)  Shareholding: CSM is (either directly or through any one or more
               of its wholly-owned subsidiaries) the legal and beneficial owner
               of at least 51 per cent. of the issued share capital of the
               Borrower;

          (2)  Accounts: its audited accounts and consolidated accounts (if any)
               as at 31st December, 1999 and for the financial year then ended
               and as delivered to the Security Trustee (with copies of the
               reports and approvals referred to in (a) below):-

               (a)  include such financial statements as are required by the
                    laws of Singapore and, save as stated in the notes thereto,
                    were prepared, audited, examined, reported on and approved
                    in accordance with accounting principles and practices
                    generally accepted in the United States of America and
                    consistently applied and in accordance with the laws of
                    Singapore and its Memorandum and Articles of Association (or
                    other constitutive documents);

               (b)  together with those notes, give a true and fair view of its
                    state of affairs and financial condition and operations (or,
                    in the case of consolidated accounts, the consolidated state
                    of affairs and financial condition and operations of CSM and
                    its subsidiaries) as at that date and for the financial year
                    then ended; and

               (c)  together with those notes and to the extent required by
                    accounting principles, standards and practices generally
                    accepted in the United States of America disclose or reserve
                    against all liabilities (contingent or otherwise) of the
                    relevant person(s) as at that date and all material
                    unrealised or anticipated losses from any commitment entered
                    into by the relevant person(s) and which existed on that
                    date;

          (3)  No Material Adverse Change: there has been no material adverse
               change in its financial condition or operations since 31st
               December, 1999 nor in the consolidated financial condition or
               operations of it and its subsidiaries since that date; and
<PAGE>   12
                                       10

          (4)  Repetition: the representation and warranty in paragraph (1) will
               be correct and complied with in all respects so long as any sum
               remains to be lent or remains payable under the Credit Agreement
               as if repeated then by reference to the then existing
               circumstances and each of the representations and warranties in
               paragraphs (2) and (3) will be correct and complied with in all
               material respects at all times up to the Termination Date as if
               repeated then by reference to the then existing circumstances.

(C)       By EDBI: EDBI further represents and warrants to and for the benefit
of the Security Trustee and each of the Secured Parties that EDBI is, on the
date of this Agreement, the legal and beneficial owner of not less than 19 per
cent. of the issued share capital of the Borrower.

(D)       By ATE: ATE further represents and warrants and for the benefit of the
Security Trustee and each of the Secured Parties that:-

          (1)  Shareholding: at all times up to 13th March, 2001 ATE has an
               effective shareholding in not less than 30 per cent. of the
               issued share capital of the Borrower and ATI (either directly or
               through any one or more of its subsidiaries in which it owns not
               less than 95 per cent. of the issued share capital of that
               subsidiary) has an effective shareholding in not less than 30 per
               cent. of the issued share capital of the Borrower;

          (2)  No Material Adverse Change: there has been no material adverse
               change in the financial condition or operations of ATI since 13th
               October, 1999; and

          (3)  Repetition: the representation and warranty in paragraph (1) will
               be correct and complied with in all respects so long as any sum
               remains to be lent or remains payable under the Credit Agreement
               as if repeated then by reference to the then existing
               circumstances and the representation and warranty in paragraph
               (2) will be correct and complied with in all material respects at
               all times up to the Termination Date as if repeated then by
               reference to the then existing circumstances.

7.        UNDERTAKINGS

(A)       By Shareholders: (1) Each of the Shareholders severally undertakes
that, at all times prior to the Termination Date:-

          (a)  Litigation: it will, as soon as reasonably practicable, deliver
               to the Security Trustee for distribution to the Secured Parties
               details of any litigation, arbitration or administrative
               proceeding which, if to its knowledge had been current or pending
               at the date of this Agreement, would have rendered the
               representation and warranty in Clause 6(A)(7) incorrect;

          (b)  Other Information: it will, as soon as reasonably practicable,
               deliver to the Security Trustee for distribution to the Secured
               Parties such other information relating to its financial
               condition or business of it as the Security Trustee (or any
               Secured Party through the Security Trustee) may from time to time
               reasonably require (except for information of a proprietary
               nature or which is reasonably regarded by it as confidential);
               and
<PAGE>   13
                                       11

          (c)  Further Assurance: it will from time to time on reasonable
               request by the Security Trustee acting on the instructions of the
               Majority Banks do or procure the doing of all such acts and will
               execute or procure the execution of all such documents as may be
               reasonably necessary for giving full effect to this Agreement or
               securing to the Security Trustee and the Secured Parties the full
               benefits of all rights, powers and remedies conferred upon the
               Security Trustee and the Secured Parties in this Agreement.

     (2)  Each of the Shareholders severally undertakes that, so long as any sum
remains to be lent or remains payable under the Credit Agreement:-

          (a)  No Winding-up: it will not propose or vote in favour of any
               resolution for the winding-up of the Borrower; and

          (b)  Dividends: it will exercise all voting rights attaching to the
               shares in the capital of the Borrower for the time being held by
               it so as to ensure that the Borrower does not declare or pay any
               dividend otherwise than in accordance with Clause 16(A)(12) of
               the Credit Agreement.

(B)       By CSM: (1) CSM further undertakes that, so long as any sum remains
to be lent or remains payable under the Credit Agreement, it will be (either
directly or through any one or more of its wholly-owned subsidiaries) the legal
and beneficial owner of at least 51 per cent. of the issued share capital of the
Borrower.

     (2)  CSM further undertakes that, so long as any sum remains to be lent or
remains payable under the Credit Agreement, it will, as soon as available and in
any event within 180 days after the end of each of its financial years
(beginning with the current one), deliver to the Security Trustee enough copies
for the Secured Parties of its audited accounts (both consolidated and
unconsolidated) as at the end of and for that financial year.

(C)       By EDBI: EDBI further undertakes that, so long as any sum remains to
be lent or remains payable under the Credit Agreement it will deliver to the
Security Trustee as soon as available and in any event within 180 days after the
end of each of its financial years (beginning with the current one), enough
copies for the Secured Parties of a statement as to its share capital and
reserves as at the end of and for that financial year.

(D)       By ATE: (1) ATE undertakes that, at all times up to 13th March, 2001
so long as any sum remains to be lent or remains payable under the Credit
Agreement, ATI (either directly or through one or more of its subsidiaries in
which it owns not less than 95 per cent. of the issued share capital of that
subsidiary) will have an effective shareholding in not less than 30 per cent. of
the issued share capital of the Borrower.

     (2)  ATE further undertakes that, at all times prior to the Termination
          Date:-

          (a)  Preparation of Accounts: it will ensure that all accounts of ATI
               to be delivered by it under this Agreement are prepared in such
               manner that they will:-

               (i)       include such financial statements as are required by
                         the laws of the United States of America and, save as
                         stated in the notes thereto, were prepared, audited,
                         examined, reported on and approved in accordance with
                         accounting principles and practices generally accepted
                         in the

<PAGE>   14
                                       12

                         United States of America consistently applied and in
                         accordance with the laws of the United States of
                         America and its Memorandum and Articles of Association
                         (or other constitutive documents);

               (ii)      together with those notes, give a true and fair view of
                         its state of affairs and financial condition and
                         operations (or, in the case of consolidated accounts,
                         the consolidated state of affairs and financial
                         condition and operations of ATI and its subsidiaries)
                         as at that date and for the financial year then ended;
                         and

               (iii)     together with those notes and to the extent required by
                         accounting principles, standards and practices
                         generally accepted in the United States of America
                         disclose or reserve against all liabilities (contingent
                         or otherwise) of the relevant person(s) as at that date
                         and all material unrealised or anticipated losses from
                         any commitment entered into by the relevant person(s)
                         and which existed on that date; and

          (b)  it will, as soon as available and in any event within 180 days
               after the end of each of its financial years (beginning with the
               current one), deliver, or cause to be delivered, to the Security
               Trustee enough copies for the Secured Parties (on the basis of
               one copy for each Secured Party) of the published annual report
               of ATI as at the end of and for that financial year.

8.        PAYMENTS

(A)       Taxes: (1)     All sums payable by the Shareholders under this
Agreement shall be paid (1) free of any restriction or condition, (2) free and
clear of and (except to the extent required by law) without any deduction or
withholding for or on account of any tax and (3) without deduction or
withholding (except to the extent required by law) on account of any other
amount, whether by way of set-off or otherwise.

     (2)  If any of the Shareholders or any other person (whether or not a party
to, or on behalf of a party to, this Agreement) must at any time deduct or
withhold any tax or other amount from any sum paid or payable by, or received or
receivable from, that Shareholder under this Agreement, that Shareholder shall
pay such additional amount as is necessary to ensure that the Security Trustee
or, as the case may be, the Secured Party to which that sum is due, receives on
the due date and retains (free from any liability other than tax on its own
overall net income) a net sum equal to what it would have received and so
retained had no such deduction or withholding been required or made.

     (3)  If any of the Shareholders or any other person (whether or not a party
to, or on behalf of a party to, this Agreement) must at any time pay any tax or
other amount on, or calculated by reference to, any sum received or receivable
by the Security Trustee or, as the case may be, any of the Secured Parties from
that Shareholder under this Agreement (except for a payment by the Security
Trustee or a Secured Party of tax on its own overall net income), that
Shareholder shall pay or procure the payment of that tax or other amount before
any interest or penalty becomes payable or, if that tax or other amount is
payable and paid by the Security Trustee or any Secured Party, shall reimburse
it on demand for the amount paid by it.

     (4)  Within 30 days after paying any sum from which it is by law to make
any deduction or withholding, and within 30 days after the due date of payment
of any tax or other amount which it is required by paragraph (3) above to pay,
the relevant Shareholder shall deliver to the Security Trustee evidence
reasonably satisfactory to the Security Trustee or, as the case may be, the
relevant

<PAGE>   15
                                       13

Secured Party of that deduction, withholding or payment and (where remittance is
required) of the remittance thereof to the relevant taxing or other authority.

     (5)  As soon as any of the Shareholders is aware that any such deduction,
withholding or payment is required (or any change in any such requirement), that
Shareholder shall notify the Security Trustee.

(B)       Goods and Services Tax: Each of the Shareholders shall also pay to the
Security Trustee and each Secured Party on demand, in addition to any amount
payable by that Shareholder under this Agreement, any goods and services, value
added or other similar tax payable in respect of that amount (and any reference
in this Agreement to that amount shall be deemed to include any such taxes
payable in addition to it).

(C)       Refund of Tax Credits: If:-

          (1)  any Shareholder makes a payment under sub-Clause (A)(2) or (3)
               (a "Tax Payment") in respect of a payment to the Security Trustee
               or any Secured Party under this Agreement; and

          (2)  that bank determines in its absolute discretion that it has
               obtained a refund of tax or obtained and used a credit against
               tax on its overall net income (a "Tax Credit") which the Security
               Trustee or that Secured Party in its absolute discretion is able
               to identify as attributable to that Tax Payment,

then, if in its absolute discretion it can do so without any adverse
consequences for the Security Trustee or, as the case may be, that Secured
Party, the Security Trustee or, as the case may be, that Secured Party shall
reimburse that Shareholder such amount as the Security Trustee or, as the case
may be, that Secured Party in its absolute discretion determines to be such
proportion of that Tax Credit as will leave the Security Trustee or, as the case
may be, that Secured Party (after that reimbursement) in no better or worse
position in respect of its worldwide tax liabilities than it would have been in
if no Tax Payment had been required. The Security Trustee or any Secured Party
shall have an absolute discretion as to whether to claim any Tax Credit (and, if
it does claim, the extent, order and manner in which it does so) and whether any
amount is due from it under this sub-Clause (C) (and, if so, what amount and
when). Neither the Security Trustee nor any Secured Party shall be obliged to
disclose any information regarding its tax affairs and computations.

(D)       Currency Indemnity: (1) Any amount received or recovered by the
Security Trustee or any Secured Party in respect of any sum expressed to be due
to it from any Shareholder under or in connection with this Agreement in a
currency (such currency being referred to as the "Relevant Currency") other than
the currency in which such sum is expressed to be due under this Agreement (such
currency being referred to as the "Currency of Account") whether as a result of,
or of the enforcement of, a judgment or order of a court or tribunal of any
jurisdiction, in the winding-up of that Shareholder or otherwise, shall only
constitute a discharge to that Shareholder to the extent of the amount in the
Currency of Account which the recipient is able, in accordance with its usual
practice, to purchase with the amount of the Relevant Currency so received or
recovered on the date of that receipt or recovery (or, if it is not practicable
to make that purchase on that date, on the first date on which it is practicable
to do so).

     (2)  If that amount in the Currency of Account is less than the amount
of the Currency of Account due to the recipient under or in connection with this
Agreement, that Shareholder shall indemnify it against any loss sustained by it
as a result. In any event, that Shareholder shall indemnify the recipient
against the cost of making any such purchase. For the purpose of this
sub-Clause (D), it will be sufficient

<PAGE>   16
                                       14

for the recipient to demonstrate that it would have suffered a loss had an
actual exchange or purchase been made.

     (3)  Each of the indemnities in this sub-Clause (D) constitutes a separate
and independent obligation from the other obligations in this Agreement, shall
give rise to a separate and independent cause of action, shall apply
irrespective of any indulgence granted by the Security Trustee, any Arranger
and/or any Secured Party and shall continue in full force and effect despite any
judgment, order, claim or proof for a liquidated amount in respect of any sum
due under this Agreement or any other judgment or order.

9.        NATURE OF RIGHTS AND OBLIGATIONS

(A)       No Release: The obligations of the Shareholders under this Agreement
(excluding, for the avoidance of doubt, any obligation of the Shareholders under
this Agreement which has been discharged) shall not be discharged, impaired or
otherwise affected by any act, omission, matter or thing which, but for this
sub-Clause (A), may operate to release or otherwise exonerate any of the
Shareholders from its obligations under this Agreement in whole or in part,
including without limitation and whether or not known to it or any other
person:-

          (1)  any variation in or to the Project;

          (2)  any time, indulgence, concession waiver or consent at any time
               given by the Security Trustee and/or any of the Secured Parties
               in respect of the Senior Indebtedness or any part thereof or to
               the Borrower, any Shareholder or any other person;

          (3)  any amendment or supplement to any provision of any Financing
               Document or any other agreement, security, guarantee or
               indemnity;

          (4)  the making or the absence of any demand on the Borrower, any
               Shareholder or any other person for payment;

          (5)  the enforcement or absence of enforcement of or release of any of
               the Financing Documents or any other agreement, security,
               guarantee or indemnity held in respect of the Senior
               Indebtedness;

          (6)  the winding-up, insolvency or bankruptcy of the Borrower, any
               Shareholder or any other person;

          (7)  the illegality, invalidity or unenforceability of or any defect
               in any provision of any Financing Document or any other
               agreement, security, guarantee or indemnity or any of the
               obligations of the Borrower, any Shareholder or any other person
               thereunder, whether on the grounds of ultra vires, not being in
               the interests of the Borrower or any other person, not having
               been duly authorised, executed or delivered by the Borrower or
               any other person or for any reason whatsoever; or

          (8)  any other act, event or omission which but for this provision
               would or might operate to impair or discharge the obligations of
               any Shareholder under this Agreement.
<PAGE>   17
                                       15

(B)       Continuing Obligations: The obligations of the Shareholders and the
Borrower under this Agreement are continuing obligations, will not be discharged
by any intermediate payment and will remain in full force and effect until the
obligations have been fulfilled (for the avoidance of doubt, nothing in this
sub-Clause (B) shall affect any obligations of the Borrower or any Shareholder
which has been discharged by the due and proper performance by the Borrower or
such Shareholder of such obligations).

(C)       Reinstatement: (1) Any settlement or discharge between the Security
Trustee or any of the Secured Parties and any of the Shareholders shall be
conditional upon no security or payment to the Security Trustee or such Secured
Party by the Borrower or any other person being avoided or reduced by virtue of
any provision or enactment relating to bankruptcy, insolvency or winding-up for
the time being in force or by virtue of any obligation to give effect to any
preference or priority and the Security Trustee or such Secured Party (as the
case may be) shall be entitled to recover the value or amount of any such
security or payment from that Shareholder subsequently as if such settlement or
discharge had not occurred.

     (2)  Without prejudice to the provisions of paragraph (1) above, where any
discharge (whether in respect of the obligations of any Shareholder or any
security for those obligations or otherwise) is made in whole or in part or any
arrangement is made on the faith of any payment, security or other disposition
which is avoided or must be repaid on bankruptcy, insolvency or winding-up or
otherwise without limitation, the liability of the Shareholders under this
Agreement shall, unless the Security Trustee and the Secured Parties agree
otherwise, continue as if the discharge or arrangement, as the case may be, had
not occurred.

(D)       Failure by Shareholder: The failure of a Shareholder or the Borrower
to perform or comply with any of its obligations under this Agreement shall not
release any other Shareholder or the Borrower of its obligations under this
Agreement.

(E)       Immediate Recourse: Each Shareholder waives any right which it may
have of first requesting the Security Trustee or any of the Secured Parties to
proceed against or enforce any other rights or security or claim payment from
the Borrower, any other Shareholder or any other person before claiming from the
Shareholder under this Agreement.

(F)       Additional Security: This Agreement shall be in addition to and shall
not in any way be prejudiced by any other security now or hereafter held by the
Security Trustee or any Secured Party as security for the obligations of the
Borrower under the Credit Agreement.

10.       EXPENSES

(A)       By Shareholders: Each of the Shareholders shall pay on demand all
costs and expenses (including legal expenses on a full indemnity basis)
reasonably incurred by the Security Trustee and/or any of the Secured Parties in
protecting or enforcing any rights against it under this Agreement.

(B)       By Borrower: The Borrower shall pay on demand all costs and expenses
(including legal expenses on a full indemnity basis) reasonably incurred by the
Security Trustee and/or any of the Secured Parties in protecting or enforcing
any rights against it under this Agreement.

11.       BENEFIT OF AGREEMENT

(A)       Shareholders/Borrower: The Borrower may not assign or transfer any of
its rights, benefits or obligations under this Agreement. None of the
Shareholders may assign or transfer any of their

<PAGE>   18
                                       16

respective rights, benefits or obligations under this Agreement other than in
the following manner and upon the following terms:-

         (1)  in the case of EDBI, it may transfer all of its rights,
              benefits and obligations under this Agreement to any of its
              wholly-owned subsidiaries which has acquired all the shares owned
              by EDBI in the Borrower, provided that (a) the transferee shall
              have agreed in writing to the other parties to this Agreement to
              assume all the obligations of EDBI under this Agreement and (b)
              EDBI and the transferee shall have undertaken to the other parties
              to this Agreement to ensure that, in the event that the transferee
              ceases to be a wholly-owned subsidiary of EDBI, the transferee
              shall transfer all its rights, benefits and obligations under this
              Agreement to EDBI or a wholly-owned subsidiary of EDBI; and

         (2)  in the case of ATE, it may transfer all of its rights,
              benefits and obligations under this Agreement to an ATI Entity
              (provided that, at the time of such transfer, ATI owns at least 95
              per cent. of the issued share capital of such ATI Entity) which
              has acquired all the shares owned by ATE in the Borrower, provided
              that (a) such ATI Entity shall have undertaken to the other
              parties to this Agreement to assume all the obligations of ATE
              under this Agreement and (b) ATE and such ATI Entity shall have
              undertaken to the other parties to this Agreement to ensure that,
              in the event ATI ceases to own at least 95 per cent. of the issued
              share capital of such ATI Entity, such ATI Entity shall transfer
              all its rights, benefits and obligations under this Agreement to
              ATI, ATE or another ATI Entity (of which ATI owns at least 95 per
              cent. of its issued share capital).

(B)       Security Trustee/Secured Parties: (1) Each of the Security and the
Secured Parties may assign all or part of its rights under this Agreement
without the consent of any party to any assignee or transferee under the Credit
Agreement (but the assignor shall give to the Borrower prior notice of such
assignment or transfer). Any such assignee shall be entitled to the full benefit
of this Agreement to the same extent as if it were an original party in respect
of the rights assigned to it.

     (2)  None of the Shareholders and the Borrower shall be liable for any
costs or expenses which may be incurred in connection with any assignment or
transfer of any of the rights of the Security Trustee or any of the Secured
Parties under this Agreement.

(C)       Disclosure of Information: The Security Trustee or any of the Secured
Parties may disclose on a confidential basis to any other party to the Financing
Documents or any of its other branches or its headquarters or to an actual or
potential New Bank, assignee, sub-participant or the like such information about
the Borrower, any Shareholder or any other person as it may think fit and may
disclose to such party such information about the Borrower or any of the
Shareholders with the prior consent in writing of the Borrower or, as the case
may be, such Shareholder (Provided that, at any time and from time to time after
the making of a declaration under Clause 17(B) of the Credit Agreement, (1) no
such consent will be required for any such disclosure and (2) the Security
Trustee or the relevant Secured Party making any such disclosure shall, if
practicable, consult with the Borrower or, as the case may be, such Shareholder
prior to making any such disclosure and shall consider in good faith any request
from the Borrower or, as the case may be, such Shareholder to the Security
Trustee or such Secured Party not to make any such disclosure or to delay making
any such disclosure).

(D)       Limitation on Certain Obligations: If, at the time of any assignment
or transfer by a Secured Party, circumstances exist which would oblige any
Shareholder to pay to the assignee or transferee under Clause 8(A) any sum in
excess of the sum (if any) which it would have been obliged to pay to that
<PAGE>   19
                                       17

Secured Party under that Clause in the absence of that assignment or transfer,
that Shareholder shall not be obliged to pay that excess.

12.       WAIVERS

          No failure on the part of the Security Trustee or any of the Secured
Parties to exercise, and no delay on its part in exercising, any right or remedy
under this Agreement will operate as a waiver thereof, nor will any single or
partial exercise of any right or remedy preclude any other or further exercise
thereof or the exercise of any other right or remedy. The rights and remedies
provided in this Agreement are cumulative and not exclusive of any other rights
or remedies (whether provided by law or otherwise).

13.       COMMUNICATIONS

(A)       Addresses: Each communication under this Agreement shall be made by
fax, telex or otherwise in writing. Each communication or document to be
delivered to any party under this Agreement shall be sent to that party at the
fax number, telex number or address, and marked for the attention of the person
(if any), from time to time designated by that party to the Security Trustee
(or, in the case of the Security Trustee, by it to each other party) for the
purpose of this Agreement. The initial fax number, telex number, address and
person (if any) so designated by each party are set out against its name at the
end of this Agreement.

(B)       Deemed Delivery: Any communication under this Agreement shall be
deemed to have been received (if sent by fax or telex) on the day of despatch or
(in any other case) when left at the address required by sub-Clause (A) above or
within five days after being sent by prepaid post (by airmail if to another
country) addressed to it at that address.

14.       PARTIAL INVALIDITY

          The illegality, invalidity or unenforceability of any provision of
this Agreement under the law of any jurisdiction shall not affect its legality,
validity or enforceability under the law of any other jurisdiction nor the
legality, validity or enforceability of any other provision.

15.       GOVERNING LAW AND JURISDICTION

(A)       Governing Law: This Agreement shall be governed by, and construed in
accordance with, the laws of Singapore.

(B)       Singapore Courts: For the benefit of the Security Trustee and each
Secured Party, all the parties irrevocably agree that the courts of Singapore
are to have jurisdiction to settle any disputes which may arise out of or in
connection with this Agreement and that, accordingly, any legal action or
proceedings arising out of or in connection with this Agreement ("Proceedings")
may be brought in those courts and each of the Borrower and the Shareholders
irrevocably submits to the jurisdiction of those courts.

(C)       Other Competent Jurisdiction: Nothing in this Clause shall limit the
right of the Security Trustee and/or any Secured Party to take Proceedings
against the Borrower or any of the Shareholders in any other court of competent
jurisdiction nor shall the taking of Proceedings in one or more jurisdictions
preclude the Security Trustee and/or any Secured Party from taking Proceedings
in any other jurisdiction, whether concurrently or not.
<PAGE>   20
                                       18

(D)       Venue: Each of the Borrower and the Shareholders irrevocably waives
any objection which it may at any time have to the laying of the venue of any
Proceedings in any court referred to in this Clause and any claim that any such
Proceedings have been brought in an inconvenient forum.

(E)       Service of Process: ATE irrevocably appoints Agilent Technologies
Singapore Pte Ltd (now of 438, Alexandra Road, #11-01/04, Alexandra Point,
Singapore 119958, Attention: The Regional Legal Counsellor) to receive, for it
and on its behalf, service of process in any Proceedings in Singapore. Such
service shall be deemed completed on delivery to the process agent (whether or
not it is forwarded to and received by ATE). If for any reason the process agent
ceases to be able to act as such or no longer has an address in Singapore, ATE
irrevocably agrees to appoint a substitute process agent acceptable to the
Security Trustee, and to deliver to the Security Trustee a copy of the new
agent's acceptance of that appointment, within 30 days. Nothing shall affect the
right to serve process in any other manner permitted by law.

(F)       Consent to Enforcement, etc.: Each of the Borrower and the
Shareholders irrevocably and generally consents in respect of any Proceedings
anywhere to the giving of any relief or the issue of any process in connection
with those Proceedings including, without limitation, the making, enforcement or
execution against any assets whatsoever (irrespective of their use or intended
use) of any order or judgment which may be made or given in those Proceedings.

(G)       Waiver of Immunity: Each of the Borrower and the Shareholders
irrevocably agrees that, should the Security Trustee or any Secured Party take
any Proceedings anywhere (whether for an injunction, specific performance,
damages or otherwise), no immunity (to the extent that it may at any time exist,
whether on the grounds of sovereignty or otherwise) from those Proceedings, from
attachment (whether in aid of execution, before judgment or otherwise) of its
assets or from execution of judgment shall be claimed by it or on its behalf or
with respect to its assets, any such immunity being irrevocably waived. Each of
the Borrower and the Shareholders irrevocably agrees that it and its assets are,
and shall be, subject to such Proceedings, attachment or execution in respect of
its obligations under this Agreement.
<PAGE>   21
                                       19

          I N   W I T N E S S   W H E R E O F  this  Agreement  has  been
entered into on the date stated at the beginning.

The Shareholders

The Common Seal of                      )
CHARTERED SEMICONDUCTOR                 )
 MANUFACTURING LTD                      )                           affixed seal
was hereunto affixed                    )
in the presence of:-                    )

         Sd. Lim Ming Seong             Director
----------------------------------------

         Sd. Nancy Tan See Sin          [Director]/Secretary
----------------------------------------

60, Woodlands Industrial Park D,
Street 2,
Singapore 738406.

Fax Number: 3622909
Attention: Legal Department

The Common Seal of                      )
EDB INVESTMENTS PTE LTD                 )                           affixed seal
was hereunto affixed                    )
in the presence of:-                    )

       Sd. Philip Yeo Liat Kok          Director
----------------------------------------

       Sd. Ho Tze Wei Monica            [Director]/Secretary
----------------------------------------

250, North Bridge Road,
#27-04, Raffles City Tower,
Singapore 179101.

Fax Number: 3362503
Attention: General Manager
Signed, Sealed and Delivered                 )
by   Sd. Antoine Pierre Chavan          )
  --------------------------------------
for and on behalf of                         )                      affixed seal
<PAGE>   22
                                       20

AGILENT TECHNOLOGIES EUROPE B.V.        )
in the presence of:- Anne Jaquenod      )

                    Sd. Anne Jaquenod

Startbaan 16,
1187 XR Amstelveen - Postbus 412
1180 AK Amstelveen
The Netherlands.

with copy to:-

European Legal Counsel
Agilent Technologies Europe B.V.,
Meyrin Branch,
39, rue de Veyrot,
CH-1217 Meyrin 1/Switzerland.

Fax Number: 41 22 780 6952
Attention: The European Legal Counsel

The Borrower

The Common Seal of                      )
CHARTERED SILICON PARTNERS PTE LTD      )                           affixed seal
was hereunto affixed                    )
in the presence of:-                    )

          Sd. Chia Song Hwee            Director
----------------------------------------

          Sd. Nancy Tan See Sin         [Director]/Secretary
----------------------------------------

60, Woodland Industrial Park D,
Street 2,
Singapore 738406.

Fax Number: 3604970
Attention: Legal Department
<PAGE>   23
                                       21

The Security Trustee

Signed, Sealed and Delivered by         )
Ronald Low and Paul Hodgson as          )    Sd. Ronald Low
attorneys for and on behalf of          )                           affixed seal
ABN AMRO BANK N.V.,                     )
 SINGAPORE BRANCH                       )    Sd. Paul Hodgson
in the presence of:- Pauline Low        )

                                             Sd. Pauline Low

63, Chulia Street, 5th Floor,
Singapore 049514.

Fax Number: 536 7816
Telex Number: RS 24396
Attention: Ms Sally Loh / Ms Patricia Teo

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