Exhibit (b)
CITIBANK., N.A.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
September 26, 2007
Xxxxxx Xxxxxx CFO
Chartered Semiconductor Manufacturing Ltd.
00 Xxxxxxxxx
Xxxxxxxxxx Xxxx X
Xxxxxx 0
Xxxxxxxxx 000000
Chartered Semiconductor Manufacturing Ltd. - Direct Registration System
for ADSs representing Ordinary Shares
Ladies and Gentlemen:
Reference is made to the Deposit Agreement, dated as of November 4, 1999
(the "Deposit Agreement"), by and among Chartered Semiconductor Manufacturing
Ltd., a company incorporated under the laws of the Republic of Singapore (the
"Company"), Citibank, N.A,, as Depositary (the "Depositary"), and all Holders
and Beneficial Owners of American Depositary Shares ("ADSs") evidenced by
American Depositary Receipts ("ADRs") issued thereunder, each ADS representing
ten (10) ordinary shares the "Shares") of the Company. Capitalized terms used
herein without definition shall have the meaning assigned thereto in the Deposit
Agreement.
The purpose of this letter agreement is to supplement the Deposit
Agreement to enable the establishment by the Depositary of a "direct
registration system" (the "DR System") for ADSs and the issuance by the
Depositary of "uncertificated ADSs" as part of the DR System. In order to enable
such issuance of "uncertificated ADSs", the Company and the Depositary agree as
follows:
1. Notwithstanding any provision of the Deposit Agreement, the Depositary
may, at any time and from time to time, issue ADSs that are not evidenced by
ADRs (such ADSs, the "Uncertificated ADSs", and the ADSs evidenced by ADRs, the
"Certificated ADSs"). When issuing and maintaining Uncertificated ADS(s) under
the Deposit Agreement (as supplemented by this letter agreement), the Depositary
shall at all times be subject to (i) the standards applicable to registrars and
transfer agents maintaining direct registration systems for equity securities in
New York and issuing uncertificated securities under New York law, and (ii) the
terms of New York law applicable to uncertificated equity securities;
2. Uncertificated ADSs shall not be represented by any instrument(s) but
shall be evidenced only by the registration of "uncertificated securities" on
the books and records of the Depositary maintained for such purpose, Any
reference to Holders of ADR(s) or ADS(s) in the Deposit Agreement shall, in the
context of the Uncertificated ADSs, refer to the person(s) in whose name the
Uncertificated ADSs are registered on the books of the Depositary maintained for
such purpose;
3. Holders of Uncertificated ADSs that are not subject to any registered
pledges, liens, restrictions or adverse claims, of which the Depositary has
written notice at such time, shall at all times have the right to exchange the
Uncertificated ADSs (or any portion thereof) for Certificated ADSs of the same
type and class, subject in each case to applicable laws and any rules the
Depositary may establish in respect of the Uncertificated ADSs;
4. Holders of Certificated ADSs shall, so long as the Depositary maintains
the DR System for the ADSs, have the right to exchange the Certificated ADSs (or
any portion thereof) for Uncertificated ADSs upon (i) the due surrender of the
Certificated ADSs to the Depositary for such purpose, and (ii) the presentation
of a written request to such effect to the Depositary, subject in each case to
(a) all liens and restrictions noted on the ADR evidencing the Certificated
ADS(s) and all adverse claims of which the Depositary then has written notice,
(b) the terms of the Deposit Agreement (as supplemented by this letter
agreement) and the rules that the Depositary may establish from time to time for
such purposes thereunder; and (c) applicable law;
5. Uncertificated ADSs shall in all respects be identical to Certificated
ADSs of the same type and class, except that (i) no ADR(s) shall be, nor shall
need to be, issued to evidence Uncertificated ADSs, (ii) Uncertificated ADSs
shall, subject to the terms of the Deposit Agreement (as supplemented by this
letter agreement), be transferable upon the same terms and conditions as
uncertificated securities under New York law, (iii) each Holder's ownership of
Uncertificated ADSs shall be recorded on the books and records of the Depositary
maintained for such purpose and evidence of such Holder's ownership shall be
reflected in periodic statements provided by the Depositary to each such Holder
in accordance with applicable law, (iv) the Depositary may from time to time,
upon notice to the Holders of Uncertificated ADSs affected thereby, establish
rules and amend or supplement existing rules, as may be deemed reasonably
necessary to maintain the DR System and for the issuance of Uncertificated ADSs
on behalf of Holders, provided that such rules do not conflict with the terms of
the Deposit Agreement (as supplemented by this letter agreement) and applicable
law, (v) the Holder of Uncertificated ADSs shall not be entitled to any benefits
under the Deposit Agreement (as supplemented by this letter agreement) and such
Holder's Uncertificated ADSs shall not be valid or enforceable for any purpose
against the Depositary or the Company unless such Holder is registered on the
books and records of the Depositary maintained for such purpose, (vi) the
Depositary may, in connection with any deposit of Shares resulting in the
issuance of Uncertificated ADSs and with any transfer, pledge, release and
cancellation of Uncertificated ADSs, require the prior receipt of such
documentation as the Depositary may reasonably request, and (vii) upon
termination of the Deposit Agreement (as supplemented by this letter agreement),
the Depositary shall not require Holders of Uncertificated ADSs to affirmatively
instruct the Depositary before remitting proceeds from the sale of the Deposited
Securities represented by such Holders' Uncertificated ADSs under the terms of
Section 6.2 of the Deposit Agreement;
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6. When issuing ADSs under the terms of the Deposit Agreement, including,
without limitation, issuances pursuant to Sections 4.3 and 4.4 thereof, the
Depositary may in its discretion determine to issue Uncertificated ADSs rather
than Certificated ADSs, unless otherwise specifically instructed in writing by
the applicable Holder to issue Certificated ADSs;
7. Holders of Uncertificated ADSs may request the sale of ADSs through the
Depositary, subject to the terms and conditions generally applicable to the sale
of ADSs through the Depositary (which may be changed by the Depositary from
time-to-time);
8. All provisions and conditions of the Deposit Agreement shall apply to
Uncertificated ADSs to the same extent as to Certificated ADSs, except as
contemplated herein. The Depositary is authorized and directed to take any and
all actions, and establish any and all procedures, deemed reasonably necessary
to give effect to the terms hereof. Any references in the Deposit Agreement or
any ADR(s) to the terms "American Depositary Share(s)" or "ADS(s)" shall, unless
the context otherwise requires, include Certificated ADS(s) and Uncertificated
ADS(s), individually or collectively, as the context may require;
9. Except as set forth herein and except as required by applicable law,
the Uncertificated ADSs shall be treated as ADSs issued and outstanding under
the terms of the Deposit Agreement (as supplemented by this letter agreement).
In the event that, in determining the rights and obligations of parties to the
Deposit Agreement (as supplemented by this letter agreement) with respect to any
Uncertificated ADSs, any conflict arises between (a) the terms of the Deposit
Agreement and (b) the terms hereof, the terms and conditions set forth herein
shall be controlling and shall govern the rights and obligations of the parties
to the Deposit Agreement pertaining to the Uncertificated ADSs; and
10. This letter agreement shall be interpreted under, and all the rights
and obligations hereunder shall be governed by, the laws of the State of New
York without regard to the principles of choice of law thereof
In addition, the Company and the Depositary agree that (i) the terms
hereof supplement the Deposit Agreement, and do not prejudice any substantial
existing rights of Holders of ADSs and, as a result, notice may but does not
need to be given of the terms hereof to Holders of ADSs, and (ii) the Company
and the Depositary shall make reference to the terms hereof in, or attach an
executed copy hereof to, the next Registration Statement on Form F-6 filing made
with the Securities and Exchange Commission in respect of the ADSs.
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CITIBANK, NA.,
as Depositary
By: /s/ Xxxx Xxx
-----------------------
Name: Xxxx Xxx
Title: Vice President
Date: 09/26/2007
Acknowledged and Agreed:
Chartered Semiconductor Manufacturing Ltd.
By: /s/ Xxxxxx Xxxxxx
-----------------------------------
Name: Xxxxxx Xxxxxx
Title: CFO
Date: 3 October 2007
