EXHIBIT 10.78
RESTRUCTURING, SETTLEMENT
AND MUTUAL RELEASE AGREEMENT
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This Restructuring, Settlement and Mutual Release Agreement (this
"Agreement") is entered into as of this 19th day of May, 1998 (the "Effective
Date"), by and among Microelectronic Packaging, Inc. ("MPI"), on behalf of
itself and its predecessors, successors, former or current subsidiaries,
affiliates, officers, directors, shareholders, agents, attorneys,
representatives, insurers, employees and assigns (collectively with MPI, the
"MPI Releasees"), and Samsung Corning Co., Ltd. ("SSC"), and its predecessors,
successors, subsidiaries, affiliates, officers, directors, stockholders, agents,
attorneys, representatives, insurers, employees and assigns (collectively with
SSC, the "SSC Releasees").
W I T N E S S E T H:
WHEREAS, pursuant to the Supplemental Deed by and between Micro-
electronic Packaging (S) Pte Ltd ("MPS") and the Development Bank of Singapore
Limited ("DBS") (the "Loan Agreement"), DBS loaned $1,000,000 to MPS, a
subsidiary of MPI currently in liquidation, which Agreement calls for certain
payments and interest amounts were thereafter due and payable periodically;
WHEREAS, MPI and SSC entered into a Guarantee and Indemnity with DBS in
connection with the Loan Agreement (the "Guarantee"), pursuant to which MPI and
SSC agreed to guaranty the obligations of MPS under the Loan Agreement;
WHEREAS, the parties wish to settle all obligations under the Loan
Agreement and the Guarantee, and terminate and release all rights and
obligations under such documents and all other related agreements, and settle
all other disputes that may exist between MPI and each of the other MPI
Releasees and SSC and each of the other SSC Releasees.
NOW, THEREFORE, in consideration of the mutual promises contained herein
and for other good and sufficient consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:
1. Definitions.
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a. "Payment Date" shall mean the calendar date after MPI completes the full
performance of its obligations under subsection 2 of this Agreement that the
payment to SSC called for in such subsection have been received.
b. "Release Date" shall be the calendar date that is ninety (90) days after
the Payment Date.
c. "Insolvency Action" shall mean the commencement of a voluntary or
involuntary case against MPI under the United States Bankruptcy Code or an
assignment for the benefit of creditors by MPI that is not dismissed within
sixty (60) days of its commencement.
d. Other defined terms shall have the meanings assigned to them herein.
2. Settlement. In order to settle the defaults, amounts owed, debts,
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liabilities and other obligations pursuant to, in connection with, or arising
out of the Loan Agreement and the Guarantee and each of their respective related
agreements, letters, documents and instruments (collectively, the "Loan
Documents"), MPI agrees that, within six (6) calendar months of the Effective
Date, it shall pay to SSC the amount of US$150,000.00, by wire transfer in
accordance with the wire transfer instructions provided by SSC. If such payment
is not made within six (6) calendar months of the Effective Date, MPI agrees
that the amount of US$500,000.00 shall be paid to SSC immediately.
3. Release Procedure. If and only if no Insolvency Action has occurred, then
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effective on the Release Date:
a. SSC, on behalf of itself and the other SSC Releasees, agrees as follows:
i. SSC, on behalf of itself and each other SSC Releasee, fully and
forever releases and discharges each of the MPI Releasees from and against any
and all claims, damages and causes of action they may have against each such
person or entity with respect to any matter under the provisions of, arising out
of or in connection with, the Loan Documents, including any breach of any
representation or warranty or noncompliance or nonfulfillment of any covenant or
agreement set forth in such documents; provided that such release and discharge
shall not extend to any claims, damages and causes of action any SSC Releasee
may have against any MPI Releasee for fraud or willful misconduct with respect
to any of the Loan Documents or any of the transactions contemplated by this
Agreement.
ii. SSC agrees that each of the Loan Documents, regardless of whether
they are in default, are fully and completely terminated and rendered devoid of
legal effect and unenforceable, such that even provisions of the Loan Documents
that, according to their terms, survive termination, are terminated and
nullified. Further, SSC acknowledges and agrees that any loan, debt, liability
or other obligation created pursuant to or arising out of the Loan Documents, as
well as any writings, agreements, notes or certificates representing such loan,
debt, liability or obligations, are canceled and rendered devoid of force and
effect.
b. MPI, on behalf of itself and the other MPI Releasees, agrees as follows:
i. MPI, on behalf of itself and each other MPI Releasee, fully and
forever releases and discharges each of the SSC Releasees from any claims,
damages, and causes of action it or they may have against any of them with
respect to any matter under the provisions of, arising out of or in connection
with the Loan Documents; provided that such release and discharge shall not
extend to any claims, damages and causes of action any MPI Releasee may have
against any SSC Releasee for fraud or willful misconduct with respect to any of
the Loan Documents or any of the transactions contemplated by this Agreement.
ii. MPI acknowledges and agrees that each of the Loan Documents are
fully and completely terminated and rendered devoid of force and effect, such
that even provisions of the Loan Documents and each of their respective related
agreements, letters, documents and
instruments that, according to their terms, survive termination, are terminated
and nullified.
4. Confidentiality. No party to this Agreement shall, except as may be
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mandated by statutory or regulatory requirements, as may be required by legal
process in the course of actual litigation or in the case of a subpoena, as may
be necessary for MPI to negotiate with its creditors, disclose to others the
fact or terms of this settlement, the amounts referred to in this Agreement or
the fact of the payment of said amounts, except that each such party may
disclose to each such party's attorneys, accountant or other advisors to whom
the disclosure is necessary to effectuate the purposes for which such party has
consulted with such professional advisors and except that (i) MPI may file this
Agreement with any governmental or regulatory body, describe it and refer to it
in any filing it makes pursuant to federal and state securities laws or to its
Board of Directors or shareholders, and (ii) MPI may issue a press release
describing the general terms of this Agreement in connection with any public
filing it makes with any governmental or regulatory body.
5. Representations and Warranties.
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a. MPI. MPI represents and warrants that:
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i. It has all requisite corporate power and authority to execute and
deliver, and fulfill its obligations under this Agreement. This Agreement
(notwithstanding the lack of approval of MPS), upon execution and delivery by
MPI and assuming due and proper execution and delivery by the other parties,
will constitute a valid and binding obligation of MPI, enforceable in accordance
with its terms, except as such enforcement may be limited by bankruptcy,
insolvency, moratorium and other laws of general application affecting the
enforcement of creditors' rights.
ii. No consent, approval, order or authorization, or registration,
qualification, designation, declaration or filing with, any federal, state or
local governmental authority on the part of MPI is required in connection with
the execution, delivery and performance of this Agreement by MPI, other than
state securities law filings.
iii. No consent, approval, waiver or other action by any person under
any contract, agreement, indenture, lease, instrument or other document to which
MPI is a party or by which it is bound is necessary for the execution, delivery
and performance of this Agreement by MPI.
b. SSC. SSC represents and warrants that:
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i. It has all requisite corporate power and authority to execute and
deliver, and fulfill its obligations under this Agreement. This Agreement
(notwithstanding the lack of approval of MPS), upon execution and delivery by
SSC, and assuming due and proper execution and delivery by MPI, will constitute
a valid and binding obligation of SSC, enforceable in accordance with its terms,
except as such enforcement may be limited by bankruptcy, insolvency, moratorium
and other laws of general application affecting the enforcement of creditors'
rights.
ii. No consent, approval, order or authorization, or registration,
qualification, designation, declaration or filing with, any foreign, federal,
state or local governmental or other
authority or third party on the part of SSC is required in connection with the
execution, delivery and performance of this Agreement.
iii. No consent, approval, waiver or other action by any person under
any contract, agreement, indenture, lease, instrument or other document or law,
ordinance, statute, rule or regulation to which SSC is a party or by which it or
its property is bound is necessary for the execution, delivery and performance
of this Agreement.
6. Miscellaneous. MPI and SSC hereby agree as follows:
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a. Severability. If any provision of this Agreement is found to be
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unenforceable, it shall not affect the enforceability of the remaining
provisions and the court shall enforce all remaining provisions to the extent
permitted by law. All parties agree that, notwithstanding the lack of execution
of this Agreement by MPS, this Agreement is valid, binding and enforceable on
all parties.
b. Prior Agreements. This Agreement shall supersede and render null and
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void any and all prior agreements between MPI and/or MPS, on one hand, and SSC
and/or any SSC Releasee, on the other hand, concerning the subject matter
contained herein.
c. Successors and Assigns. This Agreement shall bind and benefit each of
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SSC and its successors and assigns and shall also bind and benefit each MPI and
its successors and assigns. This Agreement may not be assigned by MPI, by
operation of law (e.g., merger) or otherwise (e.g., sale of substantially all
assets), without the prior written consent of SSC, except that no such consent
shall be required after the Release Date.
d. Governing Law. This Agreement shall be deemed to have been entered into
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in the State of California and shall be construed and interpreted in accordance
with the laws of California.
e. Jurisdiction. The parties to the Agreement hereby (i) irrevocably
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submit to the jurisdiction of the courts of the State of California, the Federal
courts of the United States sitting in the State of California and the courts of
Singapore for the purpose of any action or proceeding arising out of or relating
to this Agreement and any other documents and instruments relating hereto, (ii)
agree that all claims in respect of any such action or proceeding may be heard
and determined in such courts, (iii) irrevocably waive (to the extent permitted
by applicable law) any objection which any of them now or hereafter may have to
the laying of venue of any such action or proceeding brought in any of the
foregoing courts, and any objection on the ground that any such action or
proceeding in any such court has been brought in an inconvenient forum and (iv)
agree that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any
other manner permitted by law.
f. Counterparts. This Agreement may be executed in two or more
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counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
g. Titles and Subtitles. The titles and subtitles used in this Agreement
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are used for convenience only and are not to be considered in construing or
interpreting this Agreement.
h. Amendment. No amendment, modification or waiver of this Agreement or
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any part thereof shall be effective unless it is in writing and is signed by MPI
and SSC. No delay on the part of any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof. Nor shall any waiver on
the part of any party of any such right, power or privilege, nor any single or
partial exercise of any such right, power or privilege, preclude any further
exercise thereof or the exercise of any other such right, power or privilege.
The rights and remedies herein provided are cumulative and are not exclusive of
any rights or remedies that any party may otherwise have at law or in equity.
The rights and remedies of any party based upon, arising out of or otherwise in
respect of any inaccuracy in or breach or nonfulfillment of or noncompliance
with any representation, warranty, covenant or agreement contained in this
Agreement shall in no way be limited by the fact that the act, omission,
occurrence or other state of facts upon which any claim of any such inaccuracy
or breach is based may also be the subject matter of any other representation,
warranty, covenant or agreement contained in this Agreement (or in any other
agreement between the parties) as to which there is no inaccuracy or breach.
i. Termination. This Agreement may be terminated upon the mutual written
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consent of MPI and SSC. SSC may terminate this Agreement upon three (3)
business days' written notice to MPI in the event (i) an Insolvency Action
occurs or (ii) MPI commits a material breach of this Agreement. Unless
previously terminated pursuant to Section 3 of this Agreement, the Loan
Documents including the Guarantees shall remain in full force and effect upon
any termination of this Agreement.
j. Survival of Representations, Warranties, Covenants and Agreements. The
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representations, warranties, covenants and agreements contained in this
Agreement shall survive the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby.
k. Notices. All notices, demands or other communications to be given or
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delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given when delivered personally to the
recipient, sent to the recipient by reputable overnight courier service (charges
prepaid), mailed to the recipient by certified or registered mail, return,
receipt requested and postage prepaid, or transmitted by facsimile (with request
for immediate confirmation of receipt in a manner customary for communications
of such type and with physical delivery of the communication being made by one
of the other means specified in this Section as promptly as practicable
thereafter). Such notices, demands and other communications shall be addressed
as follows:
If to SSC:
Attn: ▇▇. ▇▇▇▇-▇▇▇▇ ▇▇▇
Legal Team
Samsung, Corning Co., Ltd.
27th Floor, Glass Tower Building
▇▇▇-▇, ▇▇▇▇▇▇-▇▇▇▇, ▇▇▇▇▇▇▇-▇▇
▇▇▇▇▇, ▇▇▇▇▇ 135 280
If to MPI:
Attn: President
Microelectronic Packaging, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
with a copy to:
▇▇▇▇▇▇▇, Phleger & ▇▇▇▇▇▇▇▇ LLP
Two Embarcadero Place
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▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Esq.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
or to such other address or to the attention of such other person as the
recipient party has specified by prior written notice to the sending party
(provided that notice of a change of address shall be effective only upon
receipt thereof).
m. Strict Construction. This Agreement is the result of arms-length
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negotiations between the parties hereto and has been prepared jointly by the
parties. In applying and interpreting the provisions of this Agreement, there
shall be no presumption that the Agreement was prepared by any one party or that
the Agreement shall be construed in favor of or against any one party.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
and as of the day and year first above written.
MICROELECTRONIC PACKAGING, INC.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
Chief Financial Officer
SAMSUNG, CORNING CO., LTD.
By: /s/ ▇. ▇. ▇▇▇▇
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Name: ▇▇▇▇▇ Wha, ▇▇▇▇
Its: Corporate Planning Team
General Manager