Document:

<PAGE>

                                                                   Exhibit 10.37

August 2, 2000                                                          $250,000

                                PROMISSORY NOTE

     FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to the order
                                           -----
of ChipPAC, Inc., a Delaware corporation ("Payee"), the aggregate principal sum
                                           -----
of Two Hundred Fifty Thousand Dollars ($250,000) (the "Principal Amount") on the
                                                       ----------------
termination of Maker's employment with Payee (the "Maturity Date") as more
                                                   -------------
fully described in Section 6.2.

     1.   Payment Provisions.  Maker covenants that so long as any amount
          ------------------
hereunder is outstanding:

          1.1.  Maturity.  Upon the occurrence of the Maturity Date, or on any
                --------
     accelerated maturity hereof, Maker will pay the entire principal amount of
     this Note then outstanding, together with all accrued and unpaid interest
     thereon.

          1.2.  Interest. Interest calculated daily on the basis of a 365-day
                --------
     year on the entire Principal Amount from time to time unpaid through and
     including the maturity hereof shall accrue at a rate per annum equal to
     eight percent (8.0%) after the first anniversary of the date hereof. No
     interest shall accrue prior to the first anniversary hereof. Interest after
     maturity shall be payable at a rate of one percent (1%) per annum in excess
     of the rate payable hereunder prior to maturity. In no event shall the rate
     of interest hereunder exceed the maximum interest rate permitted by
     applicable law.

          1.3.  Voluntary Prepayments.  Maker may at any time or from time to
                ---------------------
     time prepay all or any part of the principal amount of this Note, without
     premium or penalty. Any prepayment shall be accompanied by payment of the
     interest accrued on the prepaid amount.

          1.4.  Place of Payments.  Payment shall be made in lawful money of the
                -----------------
     United States of America at Payee's principal executive offices in
     California or at such other place as the holder hereof shall designate in
     writing to Maker.

     2.   Remedy.  If a default shall have occurred and be continuing, Payee
          ------
shall thereafter have the right and remedy (to the extent permitted by
applicable law), to demand, sue for or collect from Maker up to the entire
Principal Amount plus all accrued and unpaid interest thereon, such right and
remedy being exclusive.

     3.   Marshaling.  Payee shall not be required to marshal any present or
          ----------
future security for (including but not limited to this Promissory Note), or
other assurances of payment of, the amounts due hereunder, or to resort to such
security or other assurances of payment in any particular order. All of Payee's
rights hereunder and in respect of such security and other assurances of payment
shall be cumulative and in addition to all other rights, however existing or
arising. To the extent that he lawfully may, Maker hereby agrees that he will
not invoke any law relating to the marshaling of collateral that might cause
delay in or impede the enforcement of Payee's rights under this
<PAGE>

Promissory Note, and to the extent that he lawfully may, Maker hereby
irrevocably waives the benefits of all such laws.

     4.   Maker's Obligations Not Affected. The obligations of Maker hereunder
          --------------------------------
shall remain in full force and effect without regard to and shall not be
impaired by (a) any exercise or nonexercise, or any waiver, by Payee of any
right, remedy, power or privilege under or in respect of any of such obligations
or any security thereof; (b) any amendment to or modification of this Promissory
Note, or (c) the taking of additional security for, or any other assurances of
payment of, any of such obligations or the release or discharge or termination
of any security or other assurances of payment or performance for any of such
obligations; whether or not Maker shall have notice or knowledge of any of the
foregoing.

     5.   Further Assurances. Maker will do all such acts, and will furnish to
          ------------------
Payee all such financing statements, certificates, legal opinions and other
documents and will obtain all such governmental consents and corporate approvals
and will do or cause to be done all such other things as Payee may reasonably
request from time to time in order to give full effect to this Promissory Note
and to secure the rights of Payee hereunder, all without any cost or expense to
Payee. If Payee so elects, a photocopy of this Promissory Note may at any time
and from time to time be filed by Payee as a financing statement in any
recording office in any jurisdiction.

     6.   Certain Events.
          --------------

          6.1.  Bankruptcy, Insolvency, Etc. This Note shall become immediately
                ----------------------------
     due and payable, without any demand, notice or other act on the part of
     Payee upon the entry of a decree or order by a court of competent
     jurisdiction adjudging Maker bankrupt or insolvent, or the institution of
     voluntary or involuntary proceedings to adjudge Maker bankrupt or
     insolvent. No failure by any holder hereof to take action with respect to
     any such event shall affect any right to take action with respect to the
     same or any other such event.

          6.2.  Termination of Maker's Employment.  This Note shall become
                ---------------------------------
     immediately due and payable, without any demand, notice or other act on the
     part of Payee upon the termination of Maker's employment with Payee.

     7.   Notice, Etc. Any notice or other communication in connection with this
          ------------
Promissory Note shall be in writing and shall, except as otherwise provided
herein, be deemed to have been duly given when (i) delivered by hand, (ii) sent
by telecopier (with receipt confirmed), provided that a copy is mailed by
certified mail, return receipt requested, or (iii) when received by the
addressee, if sent by Express Mail, Federal Express or other express delivery
service (receipt requested), in each case, at the appropriate addresses and
telecopier numbers as set forth below:

                                      -2-
<PAGE>

If to Maker, to him at:

  Robert Krakauer
  7851 Perry Lane
  Pleasanton, California 94588
  Telephone: (925) 462-3783

or at such other address he shall specify by notice actually received by the
addressor.

If to Payee, to it at:                       with a copy to:

ChipPAC, Inc.                                Kirkland & Ellis
3151 Coronado Drive                          777 South Figueroa Street
Santa Clara, CA 95054                        Los Angeles, CA 90017
Attn: Connie Fredrickson-Bray                Attn: Eva Davis
Telephone: (408) 486-5900                    Telephone: (213) 680-8400
Telecopier: (408) 486-5914                   Telecopier: (213) 680-8500

or at such other address or telecopier number as a party shall have specified by
notice actually received by the addressor.

     8.   Miscellaneous. Maker and all endorsers hereby waive presentment,
          -------------
demand, notice, protest, and all other demands, notices and defenses (other than
payment) in connection with delivery, acceptance, performance and enforcement of
this Note except as specifically otherwise provided herein, assent to extensions
of the time of payment or forbearance or other indulgence without notice and
agree to pay all of each holder's costs of collection or enforcement, including
without limitation attorney's fees and disbursements, to the extent allowed by
law.

                                    * * * *

                                      -3-
<PAGE>

     IN WITNESS WHEREOF, I have set my hand to this Promissory Note, under seal,
this 2nd day of August, 2000.

WITNESS:                                          MAKER:

/s/ Dennis McKenna                                /s/ Robert Krakauer
-----------------------------                     -----------------------
                                                  Robert Krakauer
                                      S-1<PAGE>

                                                                   Exhibit 10.38

                         SUPPLEMENTAL AGREEMENT NO. 1
                         ----------------------------
                                    to the
                                    ------
                              ADVISORY AGREEMENT
                              ------------------

     This Supplemental Agreement No. 1 (this "Supplemental Agreement") is
entered into as of August 2, 2000 by and among ChipPAC, Inc., a Delaware
corporation, ChipPAC Limited, a corporation incorporated under the laws of the
Territory of the British Virgin Islands, ChipPAC International Company Limited,
a corporation incorporated under the laws of the Territory of the British Virgin
Islands (collectively, the "Companies") and Bain Capital, Inc., a Delaware
corporation ("Bain") (collectively, the "Parties"), and hereby amends and
supplements the Advisory Agreement (the "Advisory Agreement") entered into as of
August 5, 1999 by and among the Parties.

     WHEREAS, pursuant to a Registration Statement on Form S-1 (Registration No.
333-39428) filed with the Securities and Exchange Commission on June 16, 2000,
and as amended from time to time (the "Registration Statement"), the Company is
preparing an initial public offering (the "Offering");

     WHEREAS, the Parties have agreed that upon completion of the Offering, the
Company will no longer need the services provided to it by Bain under the
Advisory Agreement, and Bain will no longer need to provide such services;

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and for other goods and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereto, intending to be legally
bound, hereby agree as follows:

     1.   Early Termination.  The Advisory Agreement shall terminate immediately
upon the satisfaction or written waiver of all of the conditions listed in
Section 2 below; provided however, that any obligations of the Companies owed
under Sections 3 or 4 of the Advisory Agreement arising prior to the termination
shall survive termination and Sections 6, 7, 8 and 12 of the Advisory Agreement
shall survive termination of the Advisory Agreement.

     2.   Conditions.  The Advisory Agreement shall terminate pursuant to
Section 1 above, upon the satisfaction or written waiver of all of the
following:

          a.   Offering.  The Offering shall have been consummated.

          b.   Payment of Termination Fee.  The Company shall have delivered to
Bain, by wire transfer of immediately available funds to an account or accounts
as Bain shall designate, an amount equal to $4 million (the "Termination Fee").

          c.   Payment of All Fees.  The Company shall have delivered to Bain by
wire transfer of immediately available funds to an account or accounts as Bain
shall designate, or by any other method or form of payment as Bain approves, all
and any amounts owed under Sections 3 or 4 of the Advisory Agreement as of and
up until the date of the termination of the Advisory Agreement pursuant to
Section 1, above.

          d.   The Advisory Agreement between the Companies and SXI Group LLC
shall have been terminated on terms identical to those contained in this
Supplemental Agreement.

<PAGE>

     3.   Notices.  All notices hereunder shall be in writing and shall be
delivered personally or mailed by United States mail, postage prepaid, addressed
to the parties as follows:

          To the Companies, as appropriate:
          --------------------------------

          ChipPAC, Inc.
          3151 Coronado Drive
          Santa Clara, California 95054
          Attention: Chief Executive Officer
          Facsimile: (408) 486-5914

          ChipPAC Limited
          Road Town
          Tortola, British Virgin Islands
          Facsimile: (284) 494-3547

          ChipPAC Operating Limited
          (Name to be changed to
          ChipPAC International Company Limited)
          Road Town
          Tortola, British Virgin Islands
          Facsimile: (284) 494-3547

          To Bain:
          -------

          Bain Capital II, Inc.
          One Embarcadero, Suite 2260
          San Francisco, CA 94111
          Facsimile: (415) 627-1333
          Attention: David Dominik
                     Prescott Ashe

          and
          ---

          c/o Bain Capital, Inc.
          Two Copley Place
          Boston, MA 20116
          Facsimile: (617) 572-3274
          Attention: Edward Conard

                                       2
<PAGE>

     4.   Assignment.  None of the Companies may assign any obligations
hereunder to any other party without the prior written consent of Bain (which
consent shall not be unreasonably withheld), and Bain may not assign any
obligations hereunder to any other party without the prior written consent of
the Companies (which consent shall not be unreasonably withheld); provided that
Bain may, without consent of the Companies, assign its rights and obligations
under this Supplemental Agreement to any of its affiliates (but only if such
affiliate is a person or entity (excluding any Bain portfolio companies)
controlled by Bain, or in the case of an affiliate which is a partnership,
only if Bain is the ultimate general partner of such partnership) or to
Citicorp Venture Capital Ltd. The assignor shall remain liable for the
performance of any assignee.

     5.   Successors.  This Supplemental Agreement and all the obligations and
benefits hereunder shall inure to the successors and assigns of the parties.

     6.   Counterparts.  This Supplemental Agreement may be executed and
delivered by each party hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original and all of which taken
together shall constitute but one and the same agreement.

     7.   Entire Agreement; Modification; Governing Law. The terms and
conditions hereof constitute the entire agreement between the parties hereto
with respect to the subject matter of this Supplemental Agreement and
supersede all previous communications, either oral or written, representations
or warranties of any kind whatsoever, except as expressly set forth herein. No
modifications of this Supplemental Agreement nor waiver of the terms or
conditions thereof shall be binding upon either party unless approved in
writing by any authorized representative of such party. All issues concerning
this agreement shall be governed by and construed in accordance with the laws
of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any
other jurisdiction) that would cause the application of the law of any
jurisdiction other than the State of New York.

     8.   Lapse. This Supplemental Agreement shall terminate and be of no
force and effect if the conditions set forth in Section 2 have not been
satisfied on or prior to December 31, 2000.

                     *     *     *     *     *     *     *

                                       3
<PAGE>

     IN WITNESS WHEREOF, each of the Parties have caused this Supplemental
Agreement to be executed on its behalf as an instrument under seal as of the
date first above written by its officer or representative thereunto duly
authorized.

                              CHIPPAC, INC.

                              By /s/ Robert Krakauer
                                 -----------------------------------
                                 Name (Please print): Rober Krakauer
                                 Title: Senior Vice President and
                                        Chief Financial Officer

                              CHIPPAC LIMITED

                              By /s/ Richard Parsons
                                 ------------------------------------
                                 Name (Please print): Richard parsons
                                 Title: Director

                              CHIPPAC INTERNATIONAL COMPANY
                              LIMITED

                              By /s/ Richard Parsons
                                 -------------------------------------
                                 Name (Please print): Richard Parsons
                                 Title: Director

                              BAIN CAPITAL, INC.

                              By /s/ Edward Conard
                                 -------------------------------------
                                 Name (Please print): Edward Conard
                                 Title: Managing Director

                                      S-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}]]