EXHIBIT 10.67
January 19, 1999
Xx. Xxxx-Won Xxxxx
Legal Team
Samsung, Corning Co., Ltd.
000 Xxxx-xxxx Xxxxxx-xx
Xxxxx Xx Xxxxxxx-xx
Xxxxx
RE: Conditional Agreement Reached on Conversion of Debt to Equity
Dear Xx.Xxxxx:
On Friday, January 15, 0000, Xxxxxxxx, Xxxxx Instruments and our secured
creditor Motorola conditionally agreed to a debt-for-equity conversion
essentially as outlined in the proposal submitted by Microelectronic Packaging,
Inc. ("MPI") and its investment banker and financial advisors, L. H, Friend,
Weinress, Xxxxxxxx & Xxxxxxx, Inc. ("LH Friend"). The acceptance of the
attached proposal by these creditors is conditional upon agreement of the same
proposal by the majority of the remaining creditors. In addition, in fairness
to all seven creditors and due to financial constraints, MPI could not complete
this conversion without the acceptance by all of the creditors.
We are hopeful that Samsung Corning ("Samsung") will accept the attached
proposal. If you agree, your acceptance of this proposal will, of course, be
subject to 1) the completion and execution of a definitive agreement to be
drafted by MPI's legal counsel, and 2) the approval by MPI's shareholders. MPI
will obtain a fairness opinion relating to conversion on these terms from LH
Friend, and MPI anticipates its shareholders will approve the conversion at a
special meeting of shareholders to be held in mid to late March, 1999.
In the attached proposal summary, MPI will convert the Asian debt into MPI
Preferred Stock which will be convertible into MPI Common Stock on a one-for-one
basis at $0.51 per share. Considering Samsung's Settled Debt amount of
US$150,00.00, Samsung would receive sufficient Preferred Stock to convert into a
minimum of 294,118 shares of MPI Common Stock. For your information, MPI's
common shares closed at US$0.47 on Friday, January 15, 1999 and traded as high
as US$0.63 last week.
Xx. Xxxx-Won Xxxxx
Page 2
Now that Transpac, Texas Instruments and our secured creditor Motorola have
conditionally agreed to this proposal, we need your concurrence by signing your
acceptance at the bottom of this letter. As indicated, we will immediately
commence preparation of the legal documents for you and your legal advisors'
review. All creditors will receive the identical conversion rate of $0.51 per
share; this will be so noted in the agreement between MPI and each creditor.
Thank you kindly for all your help in our efforts to complete this debt-for-
equity conversion. Please call me at 000-000-0000, extension 3014 if you have
any questions or desire further information.
Best Regards,
/s/ XXXXX X. XXXXXXXXXX
-----------------------
Xxxxx X. Xxxxxxxxxx
Senior Vice President
Chief Financial Officer
CC: Xxxxxx X. Xxxxxx, Chairman, CEO and President, MPI
Xxxxxx X. Xxxxxxxx, Managing Director, LH Friend
Van X. Xxxxxx, Esq., Xxxx, Xxxxx & Xxxx
AGREED AND ACCEPTED:
/s/ JONG-WON XXXXX 12 Mar 99
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Xx. Xxxx-Won Xxxxx Date
Legal Team
MICROELECTRONIC PACKAGING, INC.
SUMMARY OF TERMS
CONVERSION OF DEBT FOR SERIES A
CONVERTIBLE PREFERRED STOCK
The Agreement to convert the debt held by the Asian creditors into Series A
Convertible Preferred Stock (the "Debt Conversion") on the following terms:
TYPE OF SECURITY: Series A Convertible Preferred Stock (the "Preferred
Stock)
PRICE PER SHARE: US$0.51
PREFERRED STOCK ISSUED
TO SAMSUNG CORNING: 366,549 shares
DIVIDEND RATE: Cumulative at 3.5% per annum (US$0.0179 per share)
CONVERSION RATIO: Each share of Preferred Stock will be convertible 1
share of MPI Common Stock
GENERAL: The rights, preferences and privileges of the Preferred
Stock will be senior over Common Stock, unless otherwise
noted. Usual and customary liquidation preferences,
voting and registration rights will apply.
