Exhibit 10.38

 

AMENDMENT NO. 5 AND AGREEMENT dated as of May 19, 2003 (this “Amendment”), to
the CREDIT AGREEMENT dated as of August 5, 1999, as amended and restated as of
June 30, 2000, and as amended by Amendment No. 1 dated as of March 13, 2001,
Amendment No. 2 dated as of June 8, 2001, Amendment No. 3, Waiver and Agreement
dated as of December 31, 2001, and Amendment No. 4, Waiver and Agreement dated
as of May 17, 2002 (the “Credit Agreement”), among CHIPPAC INTERNATIONAL COMPANY
LIMITED, a British Virgin Islands company (the “Company”), CHIPPAC, INC., a
Delaware corporation (“ChipPAC”), the Lenders (as defined therein) and CREDIT
SUISSE FIRST BOSTON, a bank organized under the laws of Switzerland, acting
through its Cayman Islands branch (“CSFB”), as administrative agent (in such
capacity, the “Administrative Agent”), as sole lead arranger and as collateral
agent for the Administrative Agent and the Lenders.

 

A.    Pursuant to the Credit Agreement, the Lenders and the Issuing Bank have
extended, and have agreed to extend, credit to the Company.

 

B.    ChipPAC and the Company have requested that the Credit Agreement be
amended as provided herein. The Requisite Lenders are willing to amend the
Credit Agreement pursuant to the terms and subject to the conditions set forth
herein.

 

C.    Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Credit Agreement.

 

Accordingly, in consideration of the mutual agreements herein contained and
other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.    Amendment to Section 1.  The definition of the term “Consolidated
Subordinated Notes” set forth in Section 1.1 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

 

““Convertible Subordinated Notes” means (a) the 8.0% Convertible Subordinated
Notes due 2011 of ChipPAC, in an aggregate outstanding principal amount as of
May 16, 2003, of $50,000,000, and (b) the convertible subordinated notes due
[            ], to be issued by ChipPAC on or prior to July 18, 2003, in an
aggregate principal amount not less than $50,000,000 nor more than
$[                ], and to have substantially the terms described in ChipPAC’s
preliminary confidential offering circular dated on or about May 19, 2003 (the
“2003 Convertible Subordinated Notes”).”

 

SECTION 2.    Agreement.  The Company and ChipPAC hereby agree that, within one
Business Day of the receipt of the proceeds of the 2003 Convertible Subordinated
Notes, the Company shall prepay in full the outstanding Term Loans.

 

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SECTION 3.    Representations and Warranties.  To induce the other parties
hereto to enter into this Amendment, the Company and ChipPAC represent and
warrant to each of the Lenders that, after giving effect to this Amendment, (a)
the representations and warranties set forth in Section 5 of the Credit
Agreement are true and correct in all material respects on and as of the date
hereof, except to the extent such representations and warranties expressly
relate to an earlier date, and (b) no Default or Event of Default has occurred
and is continuing.

 

SECTION 4.    Effectiveness.  This Amendment shall become effective as of the
date first written above on the date (the “Amendment Effective Date”) on which
the Administrative Agent shall received counterparts of this Amendment that,
when taken together, bear the signatures of the Company, the Guarantors, the
Requisite Lenders and the Administrative Agent.

 

SECTION 5.    Effect of Amendment.  Except as expressly set forth herein, this
Amendment shall not by implication or otherwise limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the Lenders, the
Issuing Bank or the Administrative Agent under the Credit Agreement or any other
Loan Document, and shall not alter, modify, amend or in any way affect any of
the terms, conditions, obligations, covenants or agreements contained in the
Credit Agreement or any other Loan Document, all of which are ratified and
affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle any Loan Party to a consent to, or a waiver,
amendment, modification or other change of, any of the terms, conditions,
obligations, covenants or agreements contained in the Credit Agreement or any
other Loan Document in similar or different circumstances. This Amendment shall
apply and be effective only with respect to the provisions of the Credit
Agreement specifically referred to herein. After the date hereof, any reference
to the Credit Agreement shall mean the Credit Agreement, as modified hereby.
This Amendment shall constitute a “Loan Document” for all purposes of the Credit
Agreement and the other Loan Documents.

 

SECTION 6.    Counterparts.  This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same contract. Delivery
of an executed counterpart of a signature page of this Amendment by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart hereof.

 

SECTION 7.    Applicable Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 8.    Headings.  The headings of this Amendment are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

 

SECTION 9.    Acknowledgment of Guarantors.  Each of the Guarantors hereby
acknowledges receipt and notice of, and consents to the terms of, this
Amendment.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their duly authorized officers, all as of the date and year first
above written.

 

CHIPPAC INTERNATIONAL COMPANY LIMITED,

by

 

/s/    Patricia H. McCall

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Name:  Patricia H. McCall

Title:  Director

CHIPPAC, INC.,

by

 

/s/    Dennis McKenna

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Name:  Dennis McKenna

Title:  Chairman and CEO

CHIPPAC KOREA COMPANY LTD.,

by

 

/s/    BK Sohn

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Name:  BK Sohn

Title:  President, Managing Director

CHIPPAC LIQUIDITY MANAGEMENT HUNGARY LIMITED LIABILITY COMPANY,

by

 

/s/    Michael G. Potter

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Name:  Michael G. Potter

Title:  Managing Director

CHIPPAC LUXEMBOURG S.A.R.L.,

by

 

/s/    

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Name:

Title:

CHIPPAC (BARBADOS) LTD.,

by

 

/s/    Patricia H. McCall

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Name:  Patricia H. McCall

Title:  Director

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CHIPPAC LIMITED,

by

 

/s/    Patricia H. McCall

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Name:  Patricia H. McCall

Title:  Director

CHIPPAC MALAYSIA SDN. BHD.,

by

 

/s/    BK Sohn

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Name:  BK Sohn

Title:  Director

CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands branch,
individually, and as Administrative Agent and an Issuing Bank,

by

 

/s/    Robert Hetu

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Name:  Robert Hetu

Title:  Director

by

 

/s/    David J. Dodd

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Name:  David J. Dodd

Title:  Associate

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5

 

SIGNATURE PAGE TO AMENDMENT NO. 5 AND AGREEMENT DATED AS OF MAY 19, 2003, TO THE
CHIPPAC CREDIT AGREEMENT DATED AS OF AUGUST 5, 1999, AS AMENDED AND RESTATED AS
OF JUNE 30, 2000, AS AMENDED

 

ARK II CLO 2001-1, LIMITED

By:

  Patriarch Partners II, LLC, as Collateral Manager

by

 

/s/    Lynn Tilton

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Name:  Lynn Tilton

Title:  Manager

BANK OF THE WEST

by

 

/s/    Clark Foster

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Name:  Clark Foster

Title:  Vice President

CITIZENS BANK OF MASSACHUSETTS

by

 

/s/    Christopher G. Daniel

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Name:  Christopher G. Daniel

Title:  Vice President

HELLER FINANCIAL, INC.

by

 

/s/    Mei Nishiwaki

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Name:  Mei Nishiwaki

Title:  Duly Authorized Signatory

IBM CREDIT LLC (FORMERLY IBM CREDIT CORP.)

by

 

/s/    Steven A. Flanagan

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Name:  Steven A. Flanagan

Title:  Manager, Global Special Handling

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STANFIELD ARBITRAGE CDO, LTD.

By:

  Stanfield Capital Partners LLC, as Collateral Manager

by

 

/s/    Christopher A. Bondy

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Name:  Christopher A. Bondy

Title:  Partner

STANFIELD CARRERA CLO, LTD.

By:

  Stanfield Capital Partners LLC, as Asset Manager

by

 

/s/    Christopher A. Bondy

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Name:  Christopher A. Bondy

Title:  Partner

STANFIELD QUATTRO CLO, LTD.

By:

  Stanfield Capital Partners LLC, as Collateral Manager

by

 

/s/    Christopher A. Bondy

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Name:  Christopher A. Bondy

Title:  Partner