EXHIBIT 10.105
[LETTERHEAD OF MICROELECTRONIC PACKAGING, INC.]
October 8, 1997
Vincent Woo
Assistant General Manager
ORIX Leasing Singapore Limited
331 North Bridge Road
#19-01/06 Odeon Towers
Singapore 188720
RE: HIRE PURCHASE AGREEMENTS: H/1875/95-9264, H/1874/95-9263, H/1876/95-9265,
H/2212/95-9668, H/0459/96-1061, H0957/96-1329, H0959/96-1331, H/0958/96-
1330, H0069/96-0179 AND H/1751/96-2298
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Dear Mr. Woo:
Thank you for your letter of September 15, 1997 regarding the settlement
arrangement for the liabilities of MPM (S) Pte Ltd. We would like to take this
opportunity to incorporate your recommended changes into a final repayment plan.
1) The above-referenced-leases were entered into between Orix Leasing
Singapore Limited ("Orix") and MPM (S), Pte., Ltd. ("MPM") and were
guaranteed by Microelectronic Packaging Singapore ("MPS") and
Microelectronic Packaging, Inc. ("MPI").
2) Due to MPM being in default under the terms of these leases, Orix has taken
possession of the leased equipment and has sold some of this equipment.
3) Orix has called upon MPI's guarantee of the MPM leases. MPS, also a
guarantor, was placed into receivership on July 10, 1997 by DBS Bank.
4) The balance remaining on these leases, according to Orix's analysis is
S$2,406,065.40, which is equal to US$1,666,250 using the exchange rate of
S$1.44/US$1 on July 15, 1997. The amount above has been further reduced by
the subsequent recovery of S$84,095.14 (effective September 30, 1997) from
the sale of additional equipment. At the prevailing exchange rate of
S$1.50/US$1.00, the recovery is equal to US$56,063. This balance may be
further reduced as a result of proceeds from:
. The sale of additional leased equipment which was repossessed by Orix, and
. Cash which may be available from the liquidation of MPS assets.
Vincent Woo
Orix Leasing Singapore Limited
October 8, 1997
Page 2
5) MPI will repay the balance on this loan of US$1,666,250 over a five-year
period, with interest-only payments in the first year, in accordance with
the attached schedule. Interest shall be paid at the rate of 7.25% per
annum (based on a 360 day year). The recovery of US$56,063 noted in (4)
above will be used to reduce the principal balance as of September 30,
1997. The remaining principal payments have been reduced accordingly.
6) Any additional proceeds received by Orix Leasing as described in (4) above
shall be used to reduce the principal balance outstanding. The remaining
principal payments shall be reduced to repay the remaining principal
balance ratably over the remaining number of principal payments originally
scheduled. Orix Leasing shall promptly notify (within 5 days of receipt)
MPI of any such proceeds received by Orix. All recoveries shall reduce the
principal balance due using the prevailing exchange rate as of the date of
the recovery.
7) Acceptance of this settlement agreement is subject to Orix reserving its
rights and remedies under the various hire purchase agreements and the
respective guarantees of MPS and Microelectronic Packaging, Inc., except as
otherwise modified by this settlement agreement.
Please indicate your acceptance of the above terms by signing in the space
provided below.
Most sincerely,
/s/ DENIS J. TRAFECANTY
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Denis J. Trafecanty
Senior Vice President and Chief Financial Officer
AGREED AND ACCEPTED:
Orix Leasing Singapore Limited
by: /s/ C.T. KWEK
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C.T. Kwek
Title: Managing Director
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Date: 15 OCT 1997
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Microelectronic Packaging, Inc.
Deficiency Balance Owed to Orix
Amortization Schedule
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Principal = $1,666,250
Interest Rate = 7.25% (based on a 360 day year)
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Beginning Days Interest Principal Ending
Date Balance O/S Payment Payment Balance
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30-Jun-97 $1,666,250 $1,666,250
30-Sep-97 1,666,250 92 30,872 56,063 1,610,187
31-Dec-97 1,610,187 92 29,833 0 1,610,187
31-Mar-98 1,610,187 90 29,185 0 1,610,187
30-Jun-98 1,610,187 91 29,509 0 1,610,187
30-Sep-98 1,610,187 92 29,833 100,637 1,509,550
31-Dec-98 1,509,550 92 27,969 100,637 1,408,913
31-Mar-99 1,408,913 90 25,537 100,637 1,308,276
30-Jun-99 1,308,276 91 23,976 100,637 1,207,639
30-Sep-99 1,207,639 92 22,375 100,637 1,107,002
31-Dec-99 1,107,002 92 20,510 100,637 1,006,365
31-Mar-00 1,006,365 91 18,443 100,637 905,728
30-Jun-00 905,728 91 16,599 100,637 805,091
30-Sep-00 805,091 92 14,917 100,637 704,454
31-Dec-00 704,454 92 13,052 100,637 603,817
31-Mar-01 603,817 90 10,944 100,637 503,180
30-Jun-01 503,180 91 9,221 100,637 402,543
30-Sep-01 402,543 92 7,458 100,637 301,906
31-Dec-01 301,906 92 5,594 100,637 201,269
31-Mar-02 201,269 90 3,648 100,637 100,632
30-Jun-02 100,632 91 1,844 100,632 0
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TOTALS $371,319 $1,666,250
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