Exhibit 10.3.C

THIRD AMENDMENT TO CREDIT AGREEMENT

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (as the same may be amended, restated,
supplemented, extended or otherwise modified from time to time, this
“Amendment”) is entered into as of March 27, 2006, by and among MAGNACHIP
SEMICONDUCTOR S.A., a société anonyme, organized and existing under the laws of
the Grand Duchy of Luxembourg, having its registered office at 74, rue de Merl,
B.P. 709, L-2017 Luxembourg, Grand Duchy of Luxembourg, registered with the
Luxembourg Register of commerce and companies under the number B 97,483,
MAGNACHIP SEMICONDUCTOR FINANCE COMPANY, a Delaware corporation (collectively,
“Borrowers”), MAGNACHIP SEMICONDUCTOR LLC, a Delaware limited liability company
(“Holdings”), the Subsidiary Guarantors listed on the signature pages hereto
(each of Borrowers, Holdings and Subsidiary Guarantors are sometimes referred to
herein as a “Loan Party” and, collectively, as the “Loan Parties”), the Lenders
and UBS AG, STAMFORD BRANCH, as administrative agent (in such capacity,
“Administrative Agent”) for the Lenders and as collateral agent (in such
capacity, “Collateral Agent” and together with the Administrative Agent, the
“Agents” and each an “Agent”) for the Secured Parties and the Issuing Bank.

RECITALS

A. The Borrowers, Holdings, Subsidiary Guarantors, UBS Securities LLC, as lead
arranger, as documentation agent and as syndication agent, UBS Loan Finance LLC,
as swingline lender, Korea Exchange Bank, as issuing bank and Agents are parties
to that certain Credit Agreement dated as of December 23, 2004 (as amended
hereby, and as the same has been and hereafter may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”).
Unless otherwise specified herein, all capitalized terms used in this Amendment
shall have the meanings ascribed to them in the Credit Agreement.

B. The Borrowers have requested that the Agents and the Required Lenders amend
Sections 6.10(a), (b) and (c) of the Credit Agreement upon the terms and subject
to the conditions as herein set forth.

NOW, THEREFORE, in consideration of the foregoing, the covenants and conditions
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

SECTION 1. Amendments to Credit Agreement. Sections 6.10(a), (b) and (c) of the
Credit Agreement are each hereby amended and restated in their entirety to read
as follows:

(a) Maximum Total Leverage Ratio. Permit the Total Leverage Ratio, at the last
day of each fiscal quarter during any period set forth in the table below, to
exceed the ratio set forth opposite such period in the table below:

 

Test Period

  

Leverage Ratio

Closing Date     - December 31, 2005

  

5.100 to 1.0

January 1, 2006 - December 31, 2006

  

4.700 to 1.0

January 1, 2007 - September 30, 2007

  

4.500 to 1.0

October 1, 2007 - December 31, 2007

  

4.250 to 1.0

January 1, 2008 - December 31, 2008

  

3.200 to 1.0

January 1, 2009 and thereafter

  

2.625 to 1.0

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(b) Minimum Interest Coverage Ratio. Permit the Consolidated Interest Coverage
Ratio, for any Test Period ending during any period set forth below, to be less
than the ratio set forth opposite such period in the table below:

 

Test Period

  

Interest Coverage Ratio

Closing Date     - December 31, 2005

  

2.500 to 1.0

January 1, 2006 - December 31, 2006

  

3.000 to 1.0

January 1, 2007 - September 30, 2007

  

3.150 to 1.0

October 1, 2007 - December 31, 2007

  

3.300 to 1.0

January 1, 2008 - December 31, 2008

  

4.500 to 1.0

January 1, 2009 and thereafter

  

5.250 to 1.0

(c) Minimum Interest Coverage Ratio (Excluding CapEx). Permit the Consolidated
Interest Coverage Ratio (Excluding CapEx), for any Test Period ending during any
period set forth in the table below, to be less than the ratio set forth
opposite such period in the table below:

 

Test Period

  

Interest

Coverage Ratio

(Excluding CapEx)

Closing Date     - December 31, 2005

  

1.000 to 1.0

January 1, 2006 - December 31, 2006

  

1.400 to 1.0

January 1, 2007 - June 30, 2007

  

1.500 to 1.0

July 1, 2007       - December 31, 2007

  

1.600 to 1.0

January 1, 2008 - December 31, 2008

  

2.000 to 1.0

January 1, 2009 and thereafter

  

3.750 to 1.0

SECTION 2. Acknowledgement by Borrowers of Obligations.

The Borrowers hereby acknowledge, confirm, and agree that as of the close of
business on March 27, 2006, (a) the Borrowers are not indebted to the Lenders in
respect of the Revolving Loans and (b) the Borrowers are indebted to the Lenders
in respect of the Letters of Credit in the principal amount of approximately
$14,339,917 (subject to currency exchange fluctuations and reductions for any
Letters of Credit which are drawn and reimbursed after March 27, 2006).

 

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SECTION 3. Representations, Warranties and Covenants of Loan Parties. To induce
the Agents and Lenders to execute and deliver this Amendment, each of the Loan
Parties represent, warrant and covenant that:

(a) The execution, delivery and performance by the Loan Parties of this
Amendment and all documents and instruments delivered in connection herewith and
the Credit Agreement and all other Loan Documents have been duly authorized, and
this Amendment and all documents and instruments delivered in connection
herewith and the Credit Agreement and all other Loan Documents are legal, valid
and binding obligations of the Loan Parties enforceable against the Loan Parties
in accordance with their respective terms, except as the enforcement thereof may
be subject to (i) the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights generally
and (ii) general principles of equity (regardless of whether such enforcement is
sought in a proceeding in equity or at law);

(b) After giving effect to this Amendment, each of the representations and
warranties made by or on behalf of such Loan Party to either Agent or any Lender
in any of the Loan Documents was true and correct when made and in all material
respects is true and correct on and as of the date of this Amendment with the
same full force and effect as if each of such representations and warranties had
been made by such Loan Party on the date hereof and in this Amendment, and each
of the agreements and covenants in the Credit Agreement and the other Loan
Documents is hereby reaffirmed with the same force and effect as if each were
separately stated herein and made as of the date hereof;

(c) Neither the execution, delivery and performance of this Amendment and all
documents and instruments delivered in connection herewith nor the consummation
of the transactions contemplated hereby or thereby does or shall contravene,
result in a breach of, or violate (i) any provision of any Loan Party’s
corporate charter, bylaws, operating agreement, purchase agreement, or other
governing documents, (ii) any law or regulation, or any order or decree of any
court or government instrumentality, or (iii) any indenture, mortgage, deed of
trust, lease, agreement or other instrument to which any Loan Party is a party
or by which any Loan Party or any of its property is bound;

(d) Agents’ and Lenders’ security interests in the Collateral continue to be
valid, binding, and enforceable first-priority security interests which secure
the Obligations (subject only to any Liens permitted under the Loan Documents),
and no tax or judgment liens are currently of record against any Loan Party or
any Subsidiary thereof; and

(e) The recitals to this Amendment are true and correct.

SECTION 4. Reference to and Effect Upon the Credit Agreement.

(a) Except as specifically set forth herein, all terms, conditions, covenants,
representations and warranties contained in the Credit Agreement or any other
Loan Documents, and all rights of Agents and Lenders and all of the Obligations,
shall remain in full force and effect; provided that in the event of a conflict
between the terms and provisions of the Credit Agreement or any other Loan
Documents (other than this Amendment), the terms and provisions of the Credit
Agreement (as amended hereby, and as the same has been and hereafter may be
amended, restated, supplemented or otherwise modified from time to time) shall
control. Each Loan Party hereby confirms that the Credit Agreement and the other
Loan Documents are in full force and effect and that neither such Loan Party nor
any of its Subsidiaries has any defenses, setoffs, claims, or counterclaims to
the Obligations under the Credit Agreement or any other Loan Documents.

 

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(b) Except as expressly set forth herein, the execution, delivery and
effectiveness of this Amendment shall not directly or indirectly (i) constitute
a consent or waiver of any past, present or future violations of any provisions
of the Credit Agreement or any other Loan Documents, (ii) amend, modify or
operate as a waiver of any provision of the Credit Agreement or any other Loan
Documents or any right, power or remedy of any Agent or any Lender thereunder,
or (iii) constitute a course of dealing or other basis for altering any
Obligations or any other contract or instrument. Except as expressly set forth
herein, each of the Agents and Lenders reserves all of its rights, powers, and
remedies under the Credit Agreement, the other Loan Documents, and/or applicable
law. All of the provisions of the Credit Agreement and the other Loan Documents,
including, without limitation, the time of the essence provisions, are hereby
reiterated, and if ever waived, reinstated.

(c) Upon the effectiveness of this Amendment, all references to the Credit
Agreement in any Loan Document shall mean and be a reference to the Credit
Agreement, as amended hereby, and the term “Loan Documents” shall include,
without limitation, this Amendment.

SECTION 5. Costs and Expenses. Each of the Borrowers and the other Loan Parties
agrees jointly and severally to reimburse Agents and Lenders for all reasonable
fees, costs and expenses, including the reasonable fees, costs and expenses of
counsel or other advisors for advice, assistance, or other representation in
connection with this Amendment and the other agreements and documents executed
in connection herewith.

SECTION 6. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS OF LAWS PROVISIONS)
OF THE STATE OF NEW YORK.

SECTION 7. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purposes.

SECTION 8. Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, but
all such counterparts shall constitute one and the same instrument, and all
signatures need not appear on any one counterpart. Any party hereto may execute
and deliver a counterpart of this Amendment by delivering by facsimile
transmission a signature page of this Amendment signed by such party, and any
such facsimile signature shall be treated in all respects as having the same
effect as an original signature. Any party delivering by facsimile transmission
a counterpart executed by it shall promptly thereafter also deliver a manually
signed counterpart of this Amendment.

SECTION 9. Time of Essence. Time is of the essence in the payment and
performance of each of the obligations of any of the parties hereunder and with
respect to all conditions to be satisfied by such party.

SECTION 10. Further Assurances. Each Loan Party agrees to take, and to cause its
Subsidiaries to take, all further actions and to execute and deliver, and to
cause its Subsidiaries to execute and deliver, all further documents as the
Agents, or either of them, may from time to time reasonably request to carry out
the transactions contemplated by this Amendment.

SECTION 11. Effectiveness. This Amendment shall become effective at the time
that all of the following conditions precedent have been met (or waived) as
determined by the Required Lenders in their sole discretion (as evidenced by the
Required Lenders’ execution and delivery of this Amendment):

(a) Agreement. Duly executed signature pages for this Amendment signed by the
Required Lenders and Loan Parties shall have been delivered to Administrative
Agent.

 

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(b) Representations and Warranties. The representations and warranties contained
herein shall be true and correct in all material respects, and no Event of
Default or Default shall exist on the date hereof.

(c) No Material Adverse Change. Since the Closing Date, there shall have
occurred no material adverse change in the business, operations, financial
conditions, profits or prospects, or in the Collateral of any Loan Party or any
Subsidiary thereof.

(d) Payment of Commitment Fees and Letter of Credit Fees. All outstanding
Commitment Fees and Fees related to any of the Letters of Credit shall each have
been paid in cash to the Administrative Agent

(e) Expenses. All of the expenses owing the Agents under Section 10.03 of the
Credit Agreement shall have been paid in full.

*** Signature Pages Follow ***

 

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IN WITNESS WHEREOF, this Third Amendment to Credit Agreement has been executed
by the parties hereto as of the date first written above.

 

MAGNACHIP SEMICONDUCTOR S.A., a

Luxembourg company

By:  

/s/ Roy Kuan

Name:

 

Roy Kuan

Title:

 

Director

MAGNACHIP SEMICONDUCTOR FINANCE

COMPANY, a Delaware limited liability company

By:  

/s/ Roy Kuan

Name:

 

Roy Kuan

Title:

 

Director

MAGNACHIP SEMICONDUCTOR LLC, a

Delaware limited liability company

By:  

/s/ Robert Krakauer

Name:

 

Title:

 

 

A-1

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SUBSIDIARY GUARANTORS

MAGNACHIP SEMICONDUCTOR, INC., a

California company

By:  

/s/ Robert Krakauer

Name:

 

Title:

 

 

A-2

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MAGNACHIP SEMICONDUCTOR SA

HOLDINGS LLC, a Delaware limited liability

company

By:  

/s/ Roy Kuan

Name:

 

Roy Kuan

Title:

 

Director

 

A-3

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MAGNACHIP SEMICONDUCTOR LIMITED,

a company incorporated in England and Wales

with registered number 05232381

By:  

/s/ Robert Krakauer

Name:

 

Title:

 

 

A-4

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MAGNACHIP SEMICONDUCTOR, INC., a

Japanese company

By:  

/s/ Robert Krakauer

Name:

 

Title:

 

 

A-5

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For execution as a deed:      

EXECUTED AS A DEED by

 

)

     

)

   

as duly appointed attorney

pursuant to a power of attorney

dated

for and on behalf of

MAGNACHIP SEMICONDUCTOR
LIMITED

in the presence of:

 

)

)

)

)

)

)

)

   

Witness: 

 

/s/ Robert Krakauer

   

Witness: 

 

/s/ John McFarland

Name:

     

Name:

 

Address:

     

Address:

 

For execution otherwise than as a deed:      

SIGNED by

 

)

     

)

   

as duly appointed attorney

pursuant to a power of attorney

dated

for and on behalf of

MAGNACHIP SEMICONDUCTOR
LIMITED

in the presence of:

 

)

)

)

)

)

)

)

   

Witness: 

          

Name:

       

Address:

       

CERTIFICATION LANGUAGE

I, the undersigned, being a director of MagnaChip Semiconductor Limited, do
hereby certify that this document is a true and complete copy of its original.

/s/ Robert Krakauer

       

Name:

     

Date:

     

 

A-6

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MAGNACHIP SEMICONDUCTOR, LTD., a

Taiwan company

By:  

/s/ Robert Krakauer

Name:

 

Title:

 

 

A-7

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MAGNACHIP SEMICONDUCTOR B.V.

By:  

/s/ Robert Krakauer

Name:

 

Title:

 

 

A-8

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MagnaChip Semiconductor Holding Company

Limited., a British Virgin Islands company

By:  

/s/ Robert Krakauer

Name:

 

Title:

 

 

A-9

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IC Media International Corporation a Cayman Islands company By:  

/s/ Robert Krakauer

Name:

 

Title:

 

 

A-10

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IC Media Technology Corporation, a Taiwan company By:  

/s/ Robert Krakauer

Name:

 

Title:

 

 

A-11

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UBS SECURITIES LLC, as Arranger,

Syndication Agent and Documentation Agent

By:  

/s/ John C. Crockett

Name:

 

John C. Crockett

Title:

 

Executive Director

By:  

/s/ Lauren Clancy

Name:

 

Lauren Clancy

Title:

 

Director

UBS AG, STAMFORD BRANCH, as

Administrative Agent and Collateral Agent

By:  

/s/ Irja R. Otsa

Name:

 

Irja R. Otsa

Title:

 

Associate Director

Banking Products Services, US

By:  

/s/ Pamela Oh

Name:

 

Pamela Oh

Title:

 

Associate Director

Banking Products Services, US

UBS LOAN FINANCE LLC, as Swingline

Lender

By:  

/s/ Irja R. Otsa

Name:

 

Irja R. Otsa

Title:

 

Associate Director

Banking Products Services, US

By:  

/s/ Pamela Oh

Name:

 

Pamela Oh

Title:

 

Associate Director

Banking Products Services, US

 

A-12

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KOREA EXCHANGE BANK By:  

/s/ Il-Won Joo

Name:

 

Il-Won Joo

Title:

 

SRM

 

A-13

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GOLDMAN SACH CREDIT PARTNERS, LP By:  

/s/ Pedro Ramirez

Name:

 

Pedro Ramirez

Title:

 

Authorized Signatory

 

A-14

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CITICORP NORTH AMERICA, INC. By:  

/s/ Suzanne Crymes

Name:

 

Suzanne Crymes

Title:

 

Vice President

 

A-15

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JPMORGAN CHASE BANK N.A. By:  

/s/ John Kowalczuk

Name:

 

John Kowalczuk

Title:

 

Vice President

 

A-16

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DEUTSCHE BANK TRUST COMPANY AMERICAS

By:

 

/s/ Lana Gifas

Name:

 

Lana Gifas

Title:

 

Vice President

DEUTSCHE BANK TRUST COMPANY AMERICAS

By:

 

/s/ Evelyn Thierry

Name:

 

Evelyn Thierry

Title:

 

Vice President

 

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