EXHIBIT 10.91
ADDENDUM TWO
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AMENDED LOAN AND SECURITY AGREEMENT
-----------------------------------
WHEREAS, TEXAS INSTRUMENTS SINGAPORE (PTE) LIMITED ("IT") and
MICROELECTRONIC PACKAGING (S) PTE LTD ("MPS") have executed a Loan and Security
Agreement (the "AGREEMENT") dated 16 May, 1995 and an Addendum One to the
Agreement which was last signed on 15 July, 1996; and
WHEREAS, MPS, and TI recognized that there has been a change in business
conditions, and
WHEREAS, MPS is the those circumstances, unable to meet the revised payment
schedule specified in Addendum One to the Loan and Security Agreement, and
WHEREAS, MPS and TI are individually and jointly agreeable to an amiacable
revision of terms to the Amended Loan Security Agreement,
Now therefore, MPS and TI agree to modify the Agreement and Addendum One to
the agreement as follows:
Repayment
- ---------
(1) The repayment of loan principal and accumulated interest shall be as stated
in Exhibit 5, which shall replace Exhibit 4.
Distributions to Shareholders
- -----------------------------
(2) As long as any balances are owned TI for principal and accumulated
interest, neither MPS and MPI shall pay any cash dividends to its/their
shareholders;
Interest
- --------
(3) In recognition of items (4) below, beginning 17 February 1997, interest
shall accrue at a reduced rate of 3.5% per annum (based on a 365-day year),
Addendum Two
Amended Loan and Security Agreement Page 2 of 3
Acceleration of Principal Repayment & Adjustment of Interest
- ------------------------------------------------------------
(4) Attached is an income forecast (Exhibit 6) for the remaining operations of
MPI (following certain projected actions of liquidation & consolidation in
2H96 and 1H97) for the three years ending 31 December, 1999. Those
operations include MPA in San Diego, California and MPS in Singapore. It
is agreed that, if MPI's remaining operations generate higher income
levels than those reflected in Exhibit 6, then additional principal
repayment(s) will be made against the latest principal due dates. The
additional principal repayment(s) will be 33-1/3% of the amount that each
year's actual "Net Income" for 1997, 1998 and 1999 exceeds the forecasted
Net Income as shown on Exhibit 6. (E.g., if MPI's income from its
remaining operations in 1997 exceeds forecast by US$500,000, MPI agrees to
pay an additional principal amount of US$166,500 or 33-1/3% of the
increased income. All such accelerated principal repayment(s) will be made
by MPI to TI within 45 days after the end of each year-end. Following such
accelerated principal repayment, interest accrual amounts shall be
appropriately reduced and confirmed by an amended schedule signed by both
parties.
Security Interest
- -----------------
(5) TI's first priority security interest in the equipment purchased with TI
borrowed funds will remain in effect; such security interest will not
change as a result of this Addendum to the Amended Loan and Security
Agreement or other restructuring covenants and agreements entered into by
MPS/MPI. TI may independently "perfect" its lien on this equipment.
Other Trade Customer Equipment Loans
- ------------------------------------
(6) It is recognized that MPS/MPI has approximately $10.5 million in Trade
Customer supplied equipment loans, including the $3.5M loan from TI
Singapore. MPS agrees that, with respect to the repayment of principal
amounts due for the above loans, that no other trade customer lender will
receive repayments of principal (measured as a cumulative repayment
percent of balances outstanding at 31 December, 1996) at a rate faster
than for the repayment of principal to TI.
(7) Items 3 & 4 of Addendum One to the Loan and Security Agreement are waived
by TI and MPS.
Addendum Two
Amended Loan and Security Agreement Page 3 of 3
All other terms and conditions of the Loan and Security Agreement and Addendum
One to the Loan and Security Agreement remain in full force and unchanged. The
failure of either party to enforce at any time any of the provisions of either
the original Loan and Security Agreement or its Addendum One or Addendum Two or
any right with respect thereto, or to exercise any options therein provided,
shall in no way be construed to be a waiver of such provisions, rights or
options, or in any way to affect the validity of this Loan and Security
Agreement or its Addendum One or Addendum Two. Either party's exercise of any of
its rights or options shall not preclude or prejudice said party from thereafter
exercising the same or any other right it may have under this Agreement and its
Addendum One and Addendum Two, irrespective of any previous action or proceeding
taken by said party.
By agreeing to the foregoing, TI hereby waives its rights to pursue a default
remedy payments due under the revised schedule of Addendum One.
In witness whereof, the parties hereto have caused this Addendum Two to the
Agreement to be executed by their respective duly authorized representatives
having an effective date of February 16, 1997 (or the date of the latest
interest payment by MPS):
Texas Instruments Singapore (Pte) Ltd Microelectronics Packaging (S) Pte Ltd
By : /s/ Jen Kwong Hwa By: /s/ Pak Jee Fook
------------------------- -----------------------
NAME: Jen Kwong Hwa NAME: Pak Jee Fook
TITLE: General Manager TITLE: Managing Director
DATE: 2 April 97 DATE: 2 April 97
------------------------ ---------------------
Microelectronic Packaging Inc.
By: /s/ Denis J. Trafecanty
------------------------------
NAME: Denis J. Trafecanty
TITLE: Vice President and Chief Financial Officer
DATE: 2 April 97
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EXHIBIT 5
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MICROELECTRONIC PACKAGING, INC.
QUARTERLY PAYMENT SCHEDULE
====================================================================================================================================
Principal = $ 3,500,000 All Amounts in U.S. $
---------------------
Interest Rate = 3.50% (For interest accrued beginning 17-Feb-97)
------------------------------------------------------------------------------------------------------------------------------
Interest Interest
Date Days O/S Accrual Payments Principal Payment Total Payment Ending Balance
------------------------------------------------------------------------------------------------------------------------------
16-May-95 $ 3,500,000.00
16-Feb-96 276 191,876.71 - - - 3,691,876.71
16-May-96 90 66,915.27 113,000.00 - 113,000.00 3,645,791.98
-----------
16-Aug-96 92 66,079.98 113,000.00 - 113,000.00 3,598,871.96
-----------
16-Nov-96 92 65,229.55 49,815.00 - 49,815.00 3,614,286.51
----------
16-Feb-97 92 66,047.37 49,815.00 49,815.00 3,630,518.88
----------
16-May-97 89 30,983.74 5,000.00 45,000.00 50,000.00 3,611,502.62
16-Aug-97 92 31,860.38 5,000.00 45,000.00 50,000.00 3,593,363.00
16-Nov-97 92 31,700.35 5,000.00 45,000.00 50,000.00 3,575,063.35
16-Feb-98 92 31,538.92 34,717.00 280,417.00 315,134.00 3,291,468.27
16-May-98 89 28,090.20 34,717.00 280,417.00 315,134.00 3,004,424.47
16-Aug-98 92 26,504.79 34,717.00 280,417.00 315,134.00 2,715,795.26
16-Nov-98 92 23,958.52 34,717.00 280,417.00 315,134.00 2,424,619.78
16-Feb-99 92 21,389.80 34,717.00 280,417.00 315,134.00 2,130,875.58
16-May-99 89 18,185.42 34,717.00 280,417.00 315,134.00 1,833,927.00
16-Aug-99 92 16,178.75 34,717.00 280,417.00 315,134.00 1,534,971.75
16-Nov-99 92 13,541.39 34,717.00 280,417.00 315,134.00 1,233,379.14
16-Feb-00 92 10,880.77 34,717.00 280,417.00 315,134.00 929,125.91
16-May-00 90 8,018.48 34,717.00 280,417.00 315,134.00 622,010.39
16-Aug-00 92 5,487.32 34,717.00 280,417.00 315,134.00 312,363.71
16-Nov-00 92 2,755.65 34,706.36 280,413.00 315,119.36 (0.00)
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TOTALS $ 757,223.36 $ 757,223.36 $ 3,500,000.00 $ 4,257,223.36
==============================================================================
==================================================================================================================================
Interest payments previously paid.
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EXHIBIT 6
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CLOSE MPM/MULTI-LAYER MICROELECTRONIC PACKAGING, INC.
- --------------------- CONSOLIDATED PROFORMA
===========================================================================================================================
Actual Forecast
Q3 '96 Q4 '96 FY '96 Q1 '97 Q2 '97 Q3 '97
- ---------------------------------------------------------------------------------------------------------------------------
SALES $ 45,647 $ 9,933 $ 55,580 $ 16,850 $ 16,200 $ 15,650
Direct Labor 5,052 1,445 6,497 1,473 1,356 974
Direct Materials 21,464 4,565 26,029 9,972 9,710 9,684
Variable Manufacturing Overhead 4,725 809 5,534 1,359 1,089 699
---------------------------------------------------------------------------
Total Variable Cost 31,241 6,819 38,060 12,804 12,155 11,357
---------------------------------------------------------------------------
CONTRIBUTION MARGIN 14,406 3,114 17,520 4,046 4,045 4,293
Percent of Sales 31.6% 31.4% 31.5% 24.0% 25.0% 27.4%
Fixed Manufacturing Overhead 6,662 3,482 10,144 1,369 1,273 911
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GROSS MARGIN 7,744 (368) 7,376 2,677 2,772 3,382
Percent of Sales 17.0% -3.7% 13.3% 15.9% 17.1% 21.6%
Variable Selling Expenses 976 230 1,206 384 373 404
Direct Fixed Overhead 5,437 1,899 7,336 1,679 1,644 1,544
Allocated Fixed Overhead 125 -- 125 -- 322 --
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Total Overhead 6,538 2,129 8,667 2,063 2,339 1,948
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OPERATING PROFIT 1,206 (2,497) (1,291) 614 433 1,434
Percent of Sales 2.6% -25.1% -2.3% 3.6% 2.7% 9.2%
Interest Expense 1,927 771 2,698 453 421 394
Other (1,227) (277) (1,504) (40) (40) (40)
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PRE-TAX PROFIT/(LOSS) FROM
CONTINUING OPERATIONS 506 (2,991) (2,485) 201 52 1,080
Percent of Sales 1.1% -30.1% -4.5% 1.2% 0.3% 6.9%
Restructuring Expenses (1) -- 203 203 19 10 --
Write-Off's/ (Gain) on extinguish of debt -- 28,916 28,916 (1,000) -- --
Income Tax 47 -- 47 420 420 420
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NET INCOME $ 459 $(32,110) $(31,651) $ 762 $ (378) $ 660
===========================================================================
Percent of Sales 1.0% -323.3% -56.9% 4.5% -2.3% 4.2%
===========================================================================================================================
===================================================================================================
Q4 '97 FY '97 FY '98 FY '99
- ---------------------------------------------------------------------------------------------------
SALES $ 17,100 $ 65,800 $ 69,500 $ 88,000
Direct Labor 1,039 4,842 4,236 5,292
Direct Materials 10,711 40,077 44,110 56,795
Variable Manufacturing Overhead 727 3,874 2,835 3,215
-------------------------------------------------
Total Variable Cost 12,477 48,793 51,181 65,302
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CONTRIBUTION MARGIN 4,623 17,007 18,319 22,698
Percent of Sales 27.0% 25.8% 26.4% 25.8%
Fixed Manufacturing Overhead 904 4,457 3,580 3,580
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GROSS MARGIN 3,719 12,550 14,739 19,118
Percent of Sales 21.7% 19.1% 21.2% 21.7%
Variable Selling Expenses 478 1,639 2,024 2,691
Direct Fixed Overhead 1,543 6,410 6,047 6,158
Allocated Fixed Overhead -- 322 -- --
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Total Overhead 2,021 8,371 8,071 8,849
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OPERATING PROFIT 1,698 4,179 6,668 10,269
Percent of Sales 9.9% 6.4% 9.6% 11.7%
Interest Expense 367 1,636 1,302 882
Other (40) (160) (308) (308)
-------------------------------------------------
PRE-TAX PROFIT/(LOSS) FROM
CONTINUING OPERATIONS 1,371 2,703 5,675 9,695
Percent of Sales 8.0% 4.1% 8.2% 11.0%
Restructuring Expenses (1) -- 29 -- --
Write-Off's/ (Gain) on extinguish of debt -- (1,000) -- --
Income Tax 420 1,680 2,090 3,660
-------------------------------------------------
NET INCOME $ 951 $ 1,994 $ 3,585 $ 6,035
=================================================
Percent of Sales 5.6% 3.0% 5.2% 6.9%
===================================================================================================
(1) These expenses shown in Q4 of 1996 and Q1 and Q2 of 1997 will be eliminated
as a result of our restructuring program.
Attachment A
MICROELECTRONIC PACKAGING, INC.
QUARTERLY PAYMENT SCHEDULE
===========================================================================================================
Principal = $ 1,250,000
Interest Rate = 18.00%
- -----------------------------------------------------------------------------------------------------------
Beginning Days Interest Principal Total Ending
Date Balance O/S Payment Payment Payment Balance
- -----------------------------------------------------------------------------------------------------------
02-Jan-97 $ 1,250,000 - - - - $ 1,250,000
31-Mar-97 1,250,000 88 55,000 - 55,000 1,250,000
30-Jun-97 1,250,000 91 56,875 - 56,875 1,250,000
30-Sep-97 1,250,000 92 57,500 - 57,500 1,250,000
05-Jan-98 1,250,000 97 60,625 - 60,625 1,250,000
31-Mar-98 1,250,000 85 53,125 78,125 131,250 1,171,875
30-Jun-98 1,171,875 91 53,320 78,125 131,445 1,093,750
30-Sep-98 1,093,750 92 50,313 78,125 128,438 1,015,625
05-Jan-99 1,015,625 97 49,258 78,125 127,383 937,500
31-Mar-99 937,500 85 39,844 78,125 117,969 859,375
30-Jun-99 859,375 91 39,102 78,125 117,227 781,250
30-Sep-99 781,250 92 35,938 78,125 114,063 703,125
04-Jan-00 703,125 96 33,750 78,125 111,875 625,000
29-Mar-00 625,000 85 26,563 78,125 104,688 546,875
28-Jun-00 546,875 91 24,883 78,125 103,008 468,750
03-Oct-00 468,750 97 22,734 78,125 100,859 390,625
02-Jan-01 390,625 91 17,773 78,125 95,898 312,500
03-Apr-01 312,500 91 14,219 78,125 92,344 234,375
03-Jul-01 234,375 91 10,664 78,125 88,789 156,250
02-Oct-01 156,250 91 7,109 78,125 85,234 78,125
02-Jan-02 78,125 92 3,594 78,125 81,719 -
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TOTALS $ 712,189 $ 1,250,000 $ 1,962,189
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