First Modification To First Amended Plan of Liquidation

UNITED STATES BANKRUPTCY COURT
WESTERN DISTRICT OF TEXAS
AUSTIN DIVISION


IN RE: ss.
ss. CASE NO. 02-14222-FM XETEL CORPORATION ss. (Chapter 11)
(Debtor) ss.


FIRST MODIFICATION TO FIRST AMENDED PLAN OF LIQUIDATION
FOR XETEL CORPORATION
---------------------


TO THE HONORABLE UNITED STATES BANKRUPTCY JUDGE:


XeTel Corporation, the Debtor herein, along with the Official Unsecured


Creditor's Committee files this Modification to First Amended Plan of


Liquidation, as follows:


1. The Texas Comptroller of Public Accounts has objected to certain


provisions of the Plan relating to the treatment of its claims.


2. The Debtor makes the following modifications to the Plan, which are


non-material and do not require re-solicitation:


a. With respect to the claims filed by the Texas Comptroller of
Public Accounts for insurance premium taxes, franchise taxes, and
sales and use taxes, Section 5.3 of the Plan is modified to
provide that the Debtor or Plan Trust shall, within thirty (30)
days following the Effective Date, pay the amounts it agrees it
owes to the State of Texas for insurance premium taxes, franchise
taxes, and sales and use taxes. All other amounts for such
insurance premium taxes, franchise taxes, and sales and use taxes
shall be paid within ten (10) days following the entry of a final
and non-appealable order allowing such claims.


b. Section 9.1 of the Plan is modified to provide that the State of
Texas shall be allowed to file an amendment to its Proof of Claim
within thirty (30) days following the completion of the sales tax
audit currently being scheduled by the State of Texas for the
Debtor; provided however, the sales tax audit shall be completely
within ninety (90) days following ...