Document:

Building Lease Agreement for R, C1 and C2 Buildings Dated as of October 6, 2004

 Exhibit 10.11 
  
 Execution Copy 
  
 BUILDING LEASE AGREEMENT 
  
 Between 
  
 MagnaChip Semiconductor, Inc. 
  
 (as Lessor) 
  
 and 
  
 Hynix Semiconductor Ltd. 
  
 (as Lessee) 
  
 with respect to 
  
 R Building, C1 Building and C2 Building located in Cheong-Ju 
  
 the Republic of Korea 
  
 October 6, 2004 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 Article 1.
	  	Definitions	  	2
			
	 Article 2.
	  	Premises	  	12
			
	 Article 3.
	  	Term	  	15
			
	 Article 4.
	  	Rent; Taxes	  	15
			
	 Article 5.
	  	Maintenance; Lessor Maintenance Fee	  	18
			
	 Article 6.
	  	Payment of Rent and Lessor Maintenance Fee	  	21
			
	 Article 7.
	  	Representations, Warranties and Covenants	  	23
			
	 Article 8.
	  	Registration of the Lease Right	  	29
			
	 Article 9.
	  	Use, Improvements and Alterations	  	30
			
	 Article 10.
	  	Restricted Matters for Lessee	  	31
			
	 Article 11.
	  	Lessor Work	  	32
			
	 Article 12.
	  	Indemnification	  	33
			
	 Article 13.
	  	Termination; Reduction of Leased Premises	  	34
			
	 Article 14.
	  	Assignment	  	36
			
	 Article 15.
	  	Quiet Enjoyment	  	37
			
	 Article 16.
	  	Surrender	  	37
			
	 Article 17.
	  	Disputes and Governing Law	  	38
			
	 Article 18.
	  	Change of Applicable Laws	  	39
			
	 Article 19.
	  	Insurance	  	39
			
	 Article 20.
	  	Signage	  	40
			
	 Article 21.
	  	Property Damage and Condemnation	  	41
			
	 Article 22.
	  	Lessor Waiver	  	43
			
	 Article 23.
	  	Intentionally Deleted	  	43
			
	 Article 24.
	  	Force Majeure	  	43
			
	 Article 25.
	  	Coordinating Committee	  	44
			
	 Article 26.
	  	Confidentiality	  	45
			
	 Article 27.
	  	Miscellaneous	  	46

			
	EXHIBIT A-1	  	LEASED PREMISES, COMMON AREAS AND RESTRICTED AREAS WITHIN LEASED BUILDINGS (R Building)
		
	EXHIBIT A-2	  	LEASED PREMISES, COMMON AREAS AND RESTRICTED AREAS WITHIN LEASED BUILDINGS (C1 Mask Shop)
		
	EXHIBIT A-3	  	LEASED PREMISES, COMMON AREAS AND RESTRICTED AREAS WITHIN LEASED BUILDINGS (C2 Mask Shop)
		
	EXHIBIT A-4	  	LEASED PREMISES, COMMON AREAS AND RESTRICTED AREAS WITHIN LEASED BUILDINGS (Property Analysis Room)
		
	EXHIBIT B-1	  	LEASED BUILDINGS AND LESSOR COMPLEX
		
	EXHIBIT B-2	  	LESSEE COMPLEX
		
	EXHIBIT B-3	  	LAND
		
	EXHIBIT C	  	RENT CALCULATION FOR MONTHLY UNIT RENT
		
	EXHIBIT D	  	LESSOR MAINTENANCE SERVICES
		
	EXHIBIT E	  	RULES AND REGULATIONS

  

 ii 

 BUILDING LEASE AGREEMENT 
  
 This BUILDING LEASE AGREEMENT (this “Agreement” or this “Lease”), dated as of October 6, 2004, is entered into by and
between: 
  

	(1)	MagnaChip Semiconductor, Ltd., a company organized and existing under the laws of Korea with its registered office at 1 Hyangjeong-dong, Heungduk-gu, Cheongju City, Chung Cheong
Bok-do, Korea (“Lessor”); and 

  

	(2)	Hynix Semiconductor Inc., a company organized and existing under the laws of the Republic of Korea (“Korea”) with its registered office at San-136-1, Ami-Ri, Bubal-Eub,
Ichon-Si, Kyoungki-Do, Korea (“Lessee”) (each a “Party”, and collectively the “Parties”). 

  
 RECITALS 
  
 WHEREAS, the Parties have entered into a certain business transfer agreement dated June 12, 2004, as amended (the “BTA”) pursuant to which, among other things, Lessor has agreed to acquire the Acquired
Assets (as defined in the BTA) from Lessee subject to the terms and conditions set forth in the BTA; 
  
 WHEREAS, the Parties desire to enter into an agreement as contemplated by the BTA whereby Lessor leases to Lessee all or certain parts of the Leased Buildings (as defined below), which are necessary for Lessee’s
Business (as defined below) and for the operation of facilities necessary for its business, in accordance with this Agreement; and 
  
 WHEREAS, the execution and delivery of this Agreement is a condition to the Closing under the BTA. 

 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, and
intending to be legally bound hereby, Lessor and Lessee agree as follows: 
  
 Article 1. Definitions 
  

	1.1.	Unless otherwise defined herein or defined in the BTA, all capitalized terms shall have the meanings set forth below: 

  
 “Affiliate” shall have the meaning ascribed to such term in the
BTA. 
  
 “Alterations” shall have the meaning ascribed
to such term in Section 9.3. 
  
 “Alternate Space”
shall have the meaning ascribed to such term in Section 7.2. 
  
 “Applicable Laws” shall mean all laws, constitutions, statutes, codes, ordinances, decrees, rules, regulations, municipal by-laws, judicial or arbitral or administrative or ministerial or departmental or regulatory judgments,
orders, decisions, rulings or awards, consent orders and decrees, policies, guidelines or any interpretations of any of the foregoing, including general principles of civil law and equity, issued by any Governmental Entity having or exercising
jurisdiction over or otherwise affecting any Party, the Business or the Leased Buildings. 
  
 “Book Value” shall mean Lessee’s book value for the particular asset as set forth in Lessee’s financial statements as of December 31, 2003 as amortized in accordance with Lessee’s accounting
practices as of December 31, 2003 and adjusted from time to time (a) as a result of the installation of capital improvements or as a result of the incurrence 
  

 2 

 of capital expenditures as determined in accordance with Korean generally accepted accounting principles
or (b) as a result of revaluation as may be permitted by Applicable Laws. 
  
 “BTA” shall have the meaning ascribed to such term in the Recitals. 
  
 “Business” shall mean any business conducted by the Lessee as of the Closing Date as well as Permitted Uses. 
  
 “Calculation Date” shall have the meaning ascribed to such term in
Section 4.1. 
  
 “CDC Machinery Room” shall mean that
certain machinery room located in the R Building as more specifically outlined on Exhibit A-1. 
  
 “Closing” shall have the meaning ascribed to such term in the BTA. 
  
 “Closing Date” shall have the meaning ascribed to such term in the BTA. 
  
 “Common Areas” shall mean Common Areas of the Leased Buildings and
Common Areas of the Lessor Complex, as appropriate for the context. 
  
 “Common Areas of the Leased Buildings” shall mean the areas of the Leased Buildings used in common by Lessor and Lessee on a shared basis, including the Special Common Areas and Specially Treated Common Areas, basement level 1 and
2 and first and second floor of R Building (including parking lot), roof area of R Building, corridors, hallways, stairways, entryways, lavatories, elevators, central mechanical rooms, elevator machine rooms, pump rooms, loading dock facilities,
electrical and communication rooms, postal, security facilities, janitorial facilities, corridors, lobbies, reception areas, atriums, fire 
  

 3 

 vestibules, elevator foyers, service elevator receiving areas, mailrooms, electric and communication
closets, public areas as well as balconies, terraces and patios on floors where other Common Areas of the Leased Buildings exist. 
  
 “Common Areas of the Lessor Complex” shall have the meaning set forth in Section 2.2. 
  
 “Common Area Share” shall mean 551/1,000 for calculations made for
any month following the Closing Date through and including March 2005, or thereafter, a fraction, the numerator of which is the number of Lessee employees at the Lessor Complex and Lessee Complex, and the denominator of which is such number of
Lessee employees plus the number of Lessor employees at the Lessor Complex and Lessee Complex, in each case such number of employees shall be measured as of April 1 of the calendar year of calculation (or as of April 1 of the year prior to the
calendar year of calculation in the case of calculations made for January, February or March); provided that if the number of employees fluctuates after any such measurement date such that the Common Area Share would have changed by at least 10% if
such fluctuation were taken into account the Common Area Share shall be adjusted to reflect such fluctuation until the next measurement date or the next such fluctuation. 
  
 “Consents” shall mean any consents, approvals, waivers or authorizations to be obtained from, or notices to be
given to, any persons or entities, and includes Governmental Authorizations. 
  
 “Coordinating Committee” shall have the meaning ascribed to such term in Section 25.1. 
  

 4 

 “Damages” shall mean any and all losses, settlements, expenses, liabilities, obligations,
claims, damages (including any governmental penalty or costs of investigation, clean-up and remediation), deficiencies, royalties, interest, costs and expenses (including reasonable attorneys’ fees and all other expenses reasonably incurred in
investigating, preparing or defending any litigation or proceeding, commenced or threatened incident to the successful enforcement of this Agreement), the extent of which are recoverable under Korean law, but shall specifically exclude Excluded
Damages. 
  
 “Due Date” shall have the meaning ascribed
to such term in Section 6.1. 
  
 “Event of Force
Majeure” shall have the meaning ascribed to such term in Section 25.1. 
  
 “Excluded Damages” shall mean any punitive damages. 
  
 “Extension Term” shall have the meaning ascribed to such term in Section 3.1. 
  
 “General Service Supply Agreement” shall mean that certain General Service Supply Agreement between Lessor and Lessee, dated as of the same date
hereof. 
  
 “Governmental Authorization” shall mean any
approval, consent, license, permit, waiver or other authorization issued, granted, given or otherwise made available by or under the authority of any Governmental Entity or otherwise pursuant to any Applicable Law, and any registration with, or
report or notice to, any Governmental entity pursuant to any Applicable Law. 
  
 “Governmental Entity” shall mean a court, arbitral tribunal, administrative agency or commission or other governmental or other regulatory authority or agency. 
  

 5 

 “Grace Period” shall have the meaning ascribed to such term in Section 16.1. 
  
 “Indemnified Person” of a Party shall mean the Party and its
Subsidiary (as defined in the BTA), and any shareholder, partner, member, director, officer, employee, agent or representative of the Party or such Subsidiary. 
  

“Initial Lease Term” shall have the meaning ascribed to such term in Section 3.1. 
  
 “Invoice” shall have the meaning ascribed to such term in Section
6.1. 
  
 “Joint Use Area” shall mean those portions of
the Test Room and the CDC Machinery Room in the R Building which are demised to Lessee or retained by Lessor and to be used jointly, as more specifically depicted on Exhibit A-1. 
  
 “Land” shall mean certain portion of lots on which the Leased Buildings are located, as more specifically
identified on Exhibit B-3. 
  
 “Leased
Buildings” shall mean the R Building, C1 Building, and C2 Building, located in the Lessor Complex, as more specifically identified in Exhibit B-1. 
  
 “Leased Premises” shall mean (i) the portion of the Leased Buildings occupied exclusively by the Lessee, comprising approximately 8,874.52
square meters and more specifically outlined on Exhibit A-1 through A-3 and (ii) the portion of the Joint Use Area designated as Lessee’s Leased Premises. 
  
 “Lease Right” shall have the meaning contained in Section 2.2. 
  
 “Lease Term” shall have the meaning ascribed to such term in
Section 3.1 
  

 6 

 “Lease Year” shall mean the one year period beginning on the Closing Date and each anniversary
thereafter. 
  
 “Lessee” shall have the meaning
contained in the Preamble of this Agreement. 
  
 “Lessee
Complex” shall mean the manufacture, testing, packaging, research and development and other facilities (including buildings) owned by Lessee, located at Cheong-Ju, Korea, and more specifically depicted on Exhibit B-2. 
  
 “Lessee Complex Lease Agreement” shall mean the Building Lease
Agreement dated as of the same date hereof, entered into by and between Lessor and Lessee with respect to certain Buildings and Warehouses located in the Lessee Complex. 
  
 “Lessor” shall have the meaning contained in the Preamble of this Agreement. 
  
 “Lessor Complex” shall mean the manufacture, testing, packaging,
research and development and other facilities (including buildings) owned by Lessor, located at Cheong-Ju, Korea, and more specifically depicted on Exhibit B-1. 
  
 “Lessor Maintenance Fee” shall have the meaning ascribed to such term in Section 5.2. 
  
 “Lessor Work” shall have the meaning contained in Article 11.

  
 “Lien” shall mean any lien, charge, claim,
agreement to sell, pledge, security interest, judgment, conditional sale agreement or other title retention agreement, finance lease, mortgage, deed of trust, security agreement, right of first refusal or offer (or other similar right), option,
restriction, tenancy, license, covenant, encroachment (whether upon any real property or by any improvement situated on any real property onto any adjoining real property or onto any easement area), right of way, easement, title defect or other
encumbrance or title matter, existing as of the Closing Date. 
  

 7 

 “Mask Shops” shall mean the portions of the C-1 Building and C-2 Building areas designated as
“Mask Shops” on the attached Exhibits A-2 and A-3, and demised to Lessee as part of its Leased Premises. 
  
 “Monthly Unit Rent” shall mean the amount of Rent with respect to each Leased Building in terms of rent per square meter for each month of the
Lease Term. 
  
 “Other Building Rent” shall have the
meaning ascribed to such term in Section 4.1. 
  
 “Other
Costs” shall have the meaning ascribed to such term in Section 6.3. 
  
 “Other Occupants of the Leased Buildings” shall mean the third parties occupying portions of the Leased Buildings under lease or occupancy arrangements with Lessor. 
  
 “Permitted Uses” shall mean the use of the Leased Buildings to
conduct the Business or any other semiconductor, information technology or other technology related business. 
  
 “Property Analysis Room” shall mean the portions of the C-2 Building designated as “Property Analysis Room” on the attached Exhibit
A-4, and demised to Lessee as part of its Leased Premises. 
  
 “Property Damage” shall have the meaning ascribed to such term in Section 21.1. 
  
 “Proceeding” shall mean any action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, or
investigative) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Entity. 
  

 8 

 “R Building Rent” shall have the meaning ascribed to such term in Section 4.2. 
  
 “Refinancing” shall have the meaning ascribed to such term in
Section 2.3. 
  
 “Rent” shall mean, collectively, the
Other Building Rent and the R Building Rent. 
  
 “Rent
Calculation for Monthly Unit Rent” shall have the meaning set forth in Exhibit C. 
  
 “Restricted Areas” shall have the meaning ascribed to such term in Section 7.5. 
  
 “Rules and Regulations” shall mean the reasonable rules and regulations, including those attached as Exhibit E to this Agreement, adopted by
Lessor and applied generally to the Leased Premises, Common Areas of the Leased Buildings and Common Area of the Lessor Complex, if any, (a) which rules and regulations have been previously provided to Lessee, (b) shall be uniformly applied to all
occupants of the Leased Premises, Common Areas of the Leased Buildings and Common Areas of the Lessor Complex, including Lessor, and (c) do not diminish the rights or increase the liabilities of the Lessee as otherwise provided under this Agreement.

  
 “Second Priority” shall have the meaning ascribed
to such term in Section 2.3. 
  
 “Special Common Area”
shall mean those portions of the Common Areas of Lessor Complex limited to the exclusive use of Lessor or Lessee, as the case may be, more specifically depicted on Exhibit A-1. 
  
 “Specially Treated Common Areas” shall mean those portions of the Common Areas on the third through sixth floors
of the R Building which are lavatories, elevators, A.H.U. room and stairways. 
  

 9 

 “Subsidiary” shall have the meaning ascribed to such term in the BTA. 
  
 “Substitute Premises” shall have the meaning ascribed to such term
in Section 21.1. 
  
 “Successor” shall have the meaning
ascribed to such term in Section 14.1. 
  
 “Taxes”
shall mean any and all taxes, fees, levies, duties, tariffs, imposts, and other charges of any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto) imposed by any Governmental
Entity pursuant to any Applicable Law levied on the Leased Buildings. Taxes shall not include any taxes on income, rents, franchise, gift, gross receipts, or capital stock tax, or similar tax arising from the Lessor’s receipt of rent.

  
 “Test Room” shall mean those certain test and
measurement rooms located in the R Building as more specifically outlined on Exhibit A-1. 
  
 “VAT” shall mean the value added Tax required to be paid to the relevant Governmental Entity in respect of the lease of the Leased Buildings to Lessee. 
  

	1.2.	Rules of Interpretation. 

  

	 	(a)	When a reference is made in this Agreement to a section or article, such reference shall be to a section or article of this Agreement unless otherwise clearly indicated to the
contrary. 

  

	 	(b)	Whenever the words “include”, “includes” or “including” are used in this Agreement they shall be deemed to be followed by the words “without
limitation.” 

  

 10 

	 	(c)	The words “hereof”, “hereto”, “herein” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to
this Agreement as a whole and not to any particular provision of this Agreement, and article, section, paragraph and exhibit references are to the articles, sections, paragraphs and exhibits of this Agreement unless otherwise specified.

  

	 	(d)	The meaning assigned to each term defined herein shall be equally applicable to both the singular and the plural forms of such term, and words denoting any gender shall include all
genders. Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning. 

  

	 	(e)	A reference to any party to this Agreement or any other agreement or document shall include such party’s successors and permitted assigns. 

  

	 	(f)	A reference to any legislation or to any provision of any legislation shall include any amendment to, and any modification or re-enactment thereof, any legislative provision
substituted therefor and all regulations and statutory instruments issued thereunder or pursuant thereto. 

  

	 	(g)	The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement
shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of this Agreement. 

  

 11 

	 	(h)	Headings are for convenience only and do not affect the interpretation of the provisions of this Agreement. 

  

	 	(i)	Any Exhibits attached hereto are incorporated herein by reference and shall be considered as part of this Agreement. 

  
 Article 2. Premises 
  

	2.1.	In consideration of the Rent hereby agreed to be paid to Lessor by Lessee and the agreements and covenants herein made by Lessee, during the Lease Term, Lessor hereby leases to
Lessee the Leased Premises, and grants the right to use the Common Areas of the Leased Buildings, including the Special Common Areas for Lessee’s use and the right to use the Common Areas of the Lessor Complex, and the right to use the Joint
Use Areas of the Leased Buildings upon the terms and conditions contained herein. 

  

	2.2.	As consideration for the Rent hereby agreed to be paid to Lessor by Lessee, as an essential inducement to Lessee to enter into this Agreement, as one of the necessary rights for the
use and benefit of this Agreement by Lessee, and as consideration for the agreements and covenants herein made by Lessee, Lessor hereby grants to Lessee with a right (i) to access and ingress to, and egress from, the Lessor Complex for the purpose
of using the Leased Premises in accordance with this Agreement, (ii) to use the Common Areas of the Leased Building and (iii) to pass and repass to and from and through the Leased Buildings or any part thereof over and along roads, accessways,
paths, hallways, corridors, highways and usable areas in, over, under and between the Leased Buildings, skybridges, including those connecting C2 Building and R Building and C2 Building and Assembly Building, walkways, arcades and all landscaped
areas (including pools and 

  

 12 

	 	 
fountains) and other thoroughfares within the Lessor Complex owned by Lessor (together, the “Common Areas of the Lessor Complex”), provided that
Lessee shall fully comply with all Applicable Laws and applicable Rules and Regulations. Lessor represents that all of such portions of the Lessor Complex are available for use by Lessee for the purpose of using the Leased Premises or operating the
Business. Lessor acknowledges that any reduction in the rights granted to Lessee under this Section 2.2 would cause immediate and irreparable harm to Lessee and will entitle Lessee, in addition to any other remedies Lessee may have hereunder or
otherwise under Applicable Laws (a) to stop any such reduction by injunction, whether such reduction arises from the acts of Lessor, or any other party claiming an interest in the Lessor Complex against Lessor and (b) to reduce the rights granted by
Lessee to Lessor under Section 2.2 of the Lessee Complex Lease Agreement. The rights granted hereunder shall be integral to the grants of the rights under Section 2.1 and elsewhere in this Agreement, shall benefit Lessee and run with Lessee’s
interest under this Agreement, and shall automatically pass to any successor and permitted assign of Lessee. 

  

	2.3.	In addition, Lessor hereby grants to Lessee a right to register the lease and rights created under this Agreement (“deunggi imchakwon”) over the Leased Premises
(the “Lease Right”) with the relevant real property registry offices for a term of the Lease Term. The Parties each upon the request of the other agree to submit a joint application to re-register the Lease Right to include any Extension
Term. Lessor will take any action necessary to maintain or cause to be maintained the priority of the Lease Right (the “Second Priority”), subordinate only to the registered rights of Lessor’s mortgagees, and any re-financing or
replacement of their mortgage loans (each, a “Financing”) secured against the Leased 

  

 13 

	 	 
Buildings during the Lease Term. Lessee acknowledges that the Financing may be refinanced or replaced from time to time and Lessee agrees to take any action
reasonably requested by Lessor at Lessor’s sole cost in connection therewith including de-registration of the Lease Right so long as Lessor and any applicable mortgagee of Lessor takes any action necessary to maintain or cause to be maintained
the Second Priority of the Lease Right, including re-registration thereof. 

  

	2.4.	Lessee acknowledges and agrees that Lessee has the right to occupy and use the Leased Premises only for the purposes provided, and upon the terms and conditions set forth, in this
Agreement. 

  

	2.5.	With respect to the CDC Machinery Room each of Lessor and Lessee shall cooperate with the other Party and take or cause to be taken such action as may be reasonably requested by the
other Party in order to, among other requirements, institute a security program to restrict access to the CDC Machinery Room solely to approved personnel. Notwithstanding anything to the contrary set forth herein, with respect to the CDC Machinery
Room, Lessor retains space therein equivalent to 229.39 square meters, and Lessee is granted as part of the Leased Premises space therein equivalent to 289.60 square meters. The CDC Machinery Room may be used by both Lessor and Lessee as Joint Use
Areas. 

  

	2.6.	Each Party shall cooperate with the other Party and take or cause to be taken such actions as may be reasonably requested by the other Party in order to comply with the other
Party’s reasonable security rules and regulations. 

  

 14 

	2.7.	With respect to the Test Room in the R Building, each of Lessor and Lessee shall cooperate with the other Party and take or cause to be taken such action as may be reasonably
requested by the other Party in order to, among other requirements, institute a security program to restrict access to the Test Room solely to approved personnel. Notwithstanding anything to the contrary set forth herein, with respect to the Test
Room, Lessor shall retain 417.57 square meters to be used as Joint Use Area, and Lessee shall be granted as Leased Premises 512.43 square meters to be used as Joint Use Area. 

  
 Article 3. Term 
  

	3.1	The initial term of this Agreement (the “Initial Lease Term”) shall be for twenty (20) years from the Closing Date, which Initial Lease Term shall, subject to the
termination provisions of Article 13, be automatically extended for successive ten (10)-year periods (each, an “Extension Term”; the Lease Term and all Extension Terms are collectively referred herein as the “Lease Term”)
under the terms and conditions hereof, (i) unless otherwise agreed between the Parties and (ii) as long as the Leased Buildings remain on the Land and Lessee uses the Leased Premises for the purpose of operating the Business. In any event, Lessor
and Lessee will undertake such action to extend the Lease Term in the event the automatic extension is not enforceable. 

  
 Article 4. Rent; Taxes 
  

	4.1.	The monthly rent for all of the Leased Premises (other than the Leased Premises in the R Building), exclusive of VAT (the “Other Building Rent”), for the first
four (4) years of the Initial Lease Term, shall be the sum for all of the Leased Premises of the calculation for 

  

 15 

	 	 
each Leased Building of the applicable Monthly Unit Rent as of December 31, 2003 derived in accordance with Exhibit C multiplied by the number of
square meters in the Leased Premises of the applicable Leased Building. Commencing on the fourth (4th) anniversary
of the Closing Date, or on the first day of the immediately succeeding calendar month if the Closing Date is not the first day of the calendar month, and every anniversary of such date (each, a “Calculation Date”), the Other Building Rent
for each Leased Premises in each Leased Building (other than the Leased Premises in the R Building) will be recalculated annually based on the Rent Calculation for Monthly Unit Rent attached as Exhibit C, multiplied by the number of square meters in
the Leased Premises of the applicable Leased Building. 

  

	4.2.	The monthly rent due from Lessee for the Leased Premises and Common Areas in R Building, exclusive of VAT (the “R Building Rent”; the R Building Rent and the Other
Building Rent are collectively referred to herein as the “Rent”), for the first four (4) years of the Initial Lease Term, shall be the Monthly Unit Rent as of December 31, 2003 derived in accordance with Exhibit C multiplied
by the sum of (i) the number of square meters in the Leased Premises of the R Building, (ii) the number of square meters of the Common Areas of the R Building (other than the Specially Treated Common Areas of the R Building) multiplied by the
Lessee’s Common Area Share, and (iii) for each of the third through sixth floors of the R Building, the number of square meters in the Specially Treated Common Areas of the relevant floor in the R Building multiplied by a fraction, the
numerator of which is the number of square meters of Leased Premises for such floor and the denominator of which is the number of square meters of total floor area for such floor excluding the Specially Treated Common Areas and any area occupied by
third 

  

 16 

	 	 
parties (other than the Leased Premises) on such floor. On each Calculation Date, the Rent for the Leased Premises of the R Building will be recalculated
annually based on the Rent Calculation for Monthly Unit Rent attached as Exhibit C, multiplied by the sum of (i) the number of square meters in the Leased Premises of the R Building, (ii) the number of square meters of the Common Areas of the R
Building (other than the Specially Treated Common Areas of the R Building) multiplied by the Lessee’s Common Area Share recalculated as of such Calculation Date, and (iii) for each of the third through sixth floors of the R Building, the number
of square meters in the Specially Treated Common Areas of the relevant floor in the R Building multiplied by a fraction, the numerator of which is the number of square meters of the Leased Premises for such floor and the denominator of which is the
number of square meters of total floor area for such floor excluding the Specially Treated Common Areas and any area occupied by third parties (other than the Leased Premises) on such floor. 

  

	4.3.	Provided the square meters of the Leased Premises for the particular Leased Building are more than fifty percent (50%) of all of the square meters of the Leased Building, Lessee
shall have the right to require Lessor to contest the amount or validity of any Taxes or other claim (collectively, “Claims”) relating to such Leased Building, if Lessee in good faith, reasonably believes they are incorrect, in which case
Lessee may pay under protest while the Claim is contested, or delay payment thereof or compliance therewith to the extent they are being so contested, provided that (i) Lessee shall pay or perform the contest of such Claim, and the amount due for
such Claims as finally determined; (ii) such contest shall not otherwise cause Lessor to be in default under any contracts or legally enforceable requirements of third parties including any Governmental Entity 

  

 17 

 which are binding upon Lessor; or cause any material part of the Leased Buildings or any Rent therefrom
to be in any immediate danger of sale, forfeiture, attachment or loss; and (iii) Lessee shall indemnify, protect, defend and hold harmless Lessor from and against any Damage incurred by Lessor in connection therewith or as a result thereof.

  
 Article 5. Maintenance; Lessor Maintenance Fee

  

	5.1.	Lessor shall be obligated to perform all maintenance and repairs, and to the extent not provided for in the General Service Supply Agreement, to supply all customary services with
respect to the Leased Premises and Common Areas as more fully described on Exhibit D (“Lessor Maintenance Services”). 

  

	5.2.	The amount of monthly maintenance fee for the Lessor Maintenance Services, exclusive of VAT (the “Lessor Maintenance Fee”) with respect to the Leased
Premises in the R Building and Common Areas of the R Building shall be initially calculated for each of the first four (4) Lease Years as follows: 

  
 two percent (2%) of each Leased Building’s Book Value as of December 31,
2003; 
 divided by the number of square meters in the R Building; 
 divided by twelve (12). 
  
 Then such monthly per square meter Lessor Maintenance Fee shall be: 
  
 multiplied by each of (i) the number of square meters in the Leased Premises of the R Building, (ii) the number of square
meters of the Common Areas of the R Building (other than the Specially Treated Common Areas of the R Building) multiplied by the Lessee’s 
  

 18 

 Common Area Share, and (iii) for each of the third through sixth floors of the R Building, the number of
square meters in the Specially Treated Common Areas of the relevant floor in the R Building multiplied by a fraction, the numerator of which is the number of square meters of the Leased Premises for such floor and the denominator of which is the
number of square meters of total floor area for such floor excluding the Specially Treated Common Areas and any area occupied by third parties (other than the Leased Premises) on such floor. 
  
 Thereafter, the Lessor Maintenance Fee with respect to the Leased Premises
in the R Building and Common Areas of the R Building shall be recalculated annually to increase or decrease by the same percentage as the change in the consumer price index published by the Korean National Statistical Office of the Ministry of
Finance and Economy (each, an “Index”) or any of its equivalent if an Index is not available, between the Index published most recently prior to the Calculation Date compared to the Index published most recently prior to one year before
such Calculation Date and as adjusted as well for the recalculation of the Common Area Share as of the Calculation Date. 
  

	5.3.	The Lessor Maintenance Fee with respect to the Leased Premises and Common Areas of the Leased Building other than those in the R Building for each of the first four (4) Lease Years
as follows: 

  
 two percent
(2%) of each Leased Building’s Book Value as of December 31, 2003; 
 divided by the number of square meters in the
applicable Leased Building; 
 divided by twelve (12). 
  

 19 

 Then such monthly per square meter Lessor Maintenance Fee shall be multiplied by the number of square
meters in the Leased Premises of the applicable Leased Building. 
  
 Thereafter, the Lessor Maintenance Fee with respect to the Leased Premises and Common Areas of the Leased Building other than those in the R Building shall be recalculated annually to increase or decrease by the same percentage as of the
change in the Index, or any of its equivalent if an Index is not available, between the Index published most recently prior to the Calculation Date compared to the Index published most recently prior to one year before such Calculation Date.

  

	5.4.	Lessor shall perform all Lessor Maintenance Service necessary to maintain the Leased Buildings in as good condition as exists as of the Closing Date, reasonable wear and tear
excepted. 

  

	5.5.	The Lessor Maintenance Fee shall be charged from the Closing Date. 

  

	5.6.	Notwithstanding anything herein to the contrary, the Parties acknowledge and agree that it is their mutual intent that the Lessor Maintenance Fee for the Lessor Maintenance Services
provided hereunder shall be no greater than the actual cost reasonably incurred to provide such Lessor Maintenance Services. The Parties agree to cooperate in good faith in furtherance of the foregoing, including by adjusting the Lessor Maintenance
Fee from time to time if necessary in order to effectuate this intent. Lessor shall use its commercially reasonable efforts to minimize the costs incurred to provide the Lessor Maintenance Services. 

  

 20 

 Article 6. Payment of Rent and Lessor Maintenance Fee 
  

	6.1.	Lessor shall provide an invoice (the “Invoice”) to Lessee by the 10th day of each calendar month which shall include the amounts of Rent (including Taxes), Lessor
Maintenance Fee, Other Costs (as defined in Section 6.3) and the corresponding VAT amount payable by Lessee for such month. Lessee shall pay in aggregate the Rent, Lessor Maintenance Fee, Other Costs and the corresponding VAT amount stated on each
Invoice to the Lessor’s designated account, or as otherwise designated by Lessor, by means of a wire transfer in immediately available funds by the 25th day of each calendar month (the “Due Date”). Lessee shall review each Invoice for
Taxes by the 20th day of each month, and, notwithstanding anything herein to the contrary, if not in agreement with
the amount, then Lessee may require the Lessor to contest such Taxes as provided in Section 4.3 of this Agreement. 

  

	6.2.	For the Initial Lease Term or any Extension Term which is less than a full calendar month, the amount of Rent, Lessor Maintenance Fee and the corresponding VAT amount payable by
Lessee shall be equal to a pro rata portion of the Rent, Lessor Maintenance Fee and the corresponding VAT amount, based on a ratio of the number of days during such month that the Initial Lease Term, or applicable Extension Term, as the case may be,
is in effect to the total number of days in such month. 

  

	6.3.	If (a) the Rent and/or Lessor Maintenance Fee are not paid on or before the Due Date or (b) any other amounts payable herein including payments due by either Party with respect to
Damages (collectively, the “Other Costs”) are not paid when due, after the passage of any applicable grace and/or cure period, Lessee or Lessor, as applicable, shall be liable 

  

 21 

 for and pay interest on the outstanding amounts of the Rent, Lessor Maintenance Fee and/or Other Costs at
a rate of eight percent (8%) per annum calculated from and including the sixth day after the Due Date until the date the Rent, the Lessor Maintenance Fee and/or Other Costs are received by the Party to whom they are due.

  

	6.4.	Lessee shall be responsible for payment of any VAT levied on the Rent, Lessor Maintenance Fee and/or Other Costs due from it to Lessor under this Agreement.

  

	6.5.	Lessor shall, at the request of Lessee, provide the Lessee with relevant data and records for the calculation of the Rent, Lessor Maintenance Fee, Other Costs and VAT and
determination of Lessor’s compliance with its obligations under this Agreement; provided that Lessee may make no more than one such request per calendar quarter and any such request must be reasonably specific. Lessor shall prepare and
maintain proper books and records of all matters pertaining to the calculation of Rent, Lessor Maintenance Fee, Other Costs and VAT under this Agreement. Subject to Article 26 and the first sentence of this Section 6.5, upon seven (7) days prior
written notice, Lessee, or its authorized representatives, may examine during normal business hours, the books, records and documents of Lessor to the extent reasonably necessary for verification of any invoice or compliance under this Agreement;
provided, however, that if a Lessor is to provide such books and records to Lessee for such Lessee’s examination and photocopying purposes, Lessor may blackout any information contained in such books and records that relates to Lessor other
than information regarding the calculation of the Rent, Lessor Maintenance Fee, Other Costs and VAT and that is required for the determination of Lessor’s compliance with its obligations under this Agreement. 

  

 22 

	6.6	Notwithstanding anything herein to the contrary, in the event of a bankruptcy filing with respect to Lessee, Lessee shall deposit with Lessor an amount equal to the Rent paid by
Lessee during the immediately preceding full calendar month under the terms of this Agreement, against which will be credited Rent payable by Lessee over the thirty day period following such deposit. Lessee shall renew such deposit each thirty days
in each case by reference to the Rent paid by Lessee during the full calendar month immediately preceding any such renewal until such bankruptcy protection filing has been accepted by the bankruptcy court. For the avoidance of doubt, Lessee shall
not be relieved of responsibility for, and shall pay when due, any Rent hereunder during any such thirty day period to the extent in excess of the then actual deposit. 

  
 Article 7. Representations, Warranties and Covenants 
  

	7.1.	Lessor hereby represents and warrants to Lessee that all of the statements contained in this Section 7.1 are true and correct in all material respects as of the Closing Date.

  

	 	(a)	Organization. Lessor is a corporation duly organized and validly existing under the laws of Korea and has full power and authority to own and lease the Leased Buildings.

  

	 	(b)	Authorization. Lessor has full corporate power and authority to execute and deliver this Agreement. The execution, delivery and performance by Lessor of this Agreement have
been duly authorized by all corporate actions on the part of Lessor that are necessary to authorize the execution, delivery and performance by Lessor of this Agreement. 

  

 23 

	 	(c)	Binding Agreement. This Agreement has been duly executed and delivered by Lessor and, assuming due and valid authorization, execution and delivery hereof by Lessee, is a
valid and binding obligation of Lessor, enforceable against Lessor in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general
application affecting enforcement of creditors’ rights generally and (ii) the availability of the remedy of injunctive relief may be subject to the discretion of the court before which any proceeding therefor may be brought or the general
principle of good faith and fairness provided for in the Korean Civil Code. 

  

	 	(d)	Title and Consents. Subject to various rights of Other Occupants of the Leased Buildings as tenants in possession, Lessor is the legal and beneficial owner of the Leased
Buildings and has requisite power to grant the lease hereunder to Lessee and the registration of the Lease Right on the Leased Premises to Lessee, and Lessor has obtained all necessary and relevant Consents in relation to the granting of the Lease
Right and the registration thereof in accordance with Article 8. 

  

	 	(e)	Use of the Leased Buildings. Lessor has obtained all Governmental Authorizations required in connection with the ownership or use of the Leased Buildings. The present
condition and use of the Leased Buildings by Lessor complies with all Applicable Laws in all material respects. 

  

 24 

	 	(f)	Brokerage. Lessor and its Subsidiaries have not made any agreement or taken any other action which might cause any Person (as defined in the BTA) to become entitled to a
broker’s or finder’s fee or commission as a result of this Lease. 

  

	 	(g)	NO OTHER REPRESENTATIONS. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT OR THE BTA, NEITHER LESSOR NOR ANY OTHER PERSON OR ENTITY ACTING ON BEHALF
OF LESSOR, MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED. TO THE EXTENT ANY REPRESENTATIONS OR WARRANTIES HEREIN ARE INCONSISTENT WITH ANY REPRESENTATIONS OR WARRANTIES IN THE BTA, THE APPLICABLE REPRESENTATIONS OR WARRANTIES IN THE BTA
SHALL CONTROL. 

  

	7.2.	Lessor will maintain the Leased Buildings in material compliance with all Applicable Laws. If the Leased Premises at any time cannot be leased to and occupied by Lessee in
compliance with Applicable Laws, whether as a result of the Lessor’s failure to perform permitting requirements or for other reasons with respect to any of the Leased Buildings, other than due to Lessee’s acts, omissions or use of the
Leased Premises, then in any of such events, (a) Rent for the applicable Leased Premises shall be abated based on the square meters of the Leased Premises which cannot be leased and occupied, (b) Lessor shall either (i) provide Substitute Premises
to the extent that Substitute Premises are in the possession of Lessor, or (ii) use commercially reasonable efforts to locate alternate space for Lessee to occupy (the “Alternate Space”) to the extent that Substitute Premises are not in
the possession of Lessor, and (c) Lessor shall pay for all of the Lessee’s expenses in demobilization and remobilization to the Substitute Premises to the extent not 

  

 25 

 covered by Lessee’s insurance. Lessee shall pay Rent attributable to the square meters provided in
any Substitute Premises based on the formula in Exhibit C or Lessee shall pay rent required by the applicable landlord for the Alternate Space to the extent such Alternate Space is provided by third parties. 
  

	7.3.	Lessee hereby represents and warrants to Lessor that all of the statements contained in this Section 7.3 are true and correct in all material respects as of the Closing Date.

  

	 	(a)	Organization. Lessee is a corporation duly organized and validly existing under the laws of Korea and has full power and authority to carry on its business as heretofore
conducted. 

  

	 	(b)	Authorization. Lessee has full corporate power and authority to execute and deliver this Agreement. The execution, delivery and performance by Lessee of this Agreement have
been duly authorized by all corporate actions on the part of Lessee that are necessary to authorize the execution, delivery and performance by Lessee of this Agreement. 

  

	 	(c)	Binding Agreement. This Agreement has been duly executed and delivered by Lessee and, assuming due and valid authorization, execution and delivery hereof by Lessor, is a
valid and binding obligation of Lessee, enforceable against Lessee in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general
application affecting enforcement of creditors’ rights generally and (ii) the availability of the remedy of injunctive relief may be subject to the discretion of the court before which any proceeding therefor may be brought or the general
principle of good faith and fairness provided for in the Korean Civil Code. 

  

 26 

	 	(d)	Brokerage. Lessee and its Subsidiaries have not made any agreement or taken any other action which might cause any Person to become entitled to a broker’s or
finder’s fee or commission as a result of the Lease. 

  

	 	(e)	NO OTHER REPRESENTATIONS. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT OR THE BTA, NEITHER LESSEE NOR ANY OTHER PERSON OR ENTITY ACTING ON BEHALF
OF LESSEE, MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE EXTENT ANY REPRESENTATIONS OR WARRANTIES HEREIN ARE INCONSISTENT WITH ANY REPRESENTATIONS OR WARRANTIES IN THE BTA, THE APPLICABLE REPRESENTATIONS OR WARRANTIES IN THE BTA
SHALL CONTROL. 

  

	7.4.	Each Party covenants and agrees to endeavor to cooperate with the other Party so as to minimize any interference with the other Party’s operation of its business, and to
instruct its employees to so cooperate. 

  

	7.5.	If, for whatever reason, it is necessary for Lessor to gain access to the Leased Premises, then Lessee’s prior consent shall be required, and Lessee covenants and agrees that
such consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, and except for those restricted areas of the Leased Premises set forth on Exhibit A-1 through A-3 as to which Lessor shall have access only if accompanied by
a representative 

  

 27 

	 	 
of Lessee (the “Restricted Areas”), Lessor or its employees shall be permitted to have access to the Leased Premises during normal business hours
with prior written notice of at least two (2) Business Days (a) specifying the purpose of the inspection of the condition of the Leased Premises, (b) indemnifying Lessee for any Damage that arises as a result of such inspection, and (c) agreeing not
to interfere with the ordinary operation of Lessee’s Business; provided, however, such prior notice is not required in case of emergency, risk of injury or property damage. In case of emergency, Lessee shall provide Lessor with access to the
Leased Premises (other than Restricted Areas); only on the condition that such emergency could reasonably be expected to cause Lessor to be liable for Damages if Lessor did not address such emergency. Notwithstanding the foregoing, personnel engaged
by Lessor providing Lessor Maintenance Service shall have access to the entirety of the Leased Premises, including the Restricted Areas, for the purpose of providing Lessor Maintenance Service. 

  

	7.6.	From and after the Closing Date, Lessee shall comply in all material respects with all Applicable Laws, including the environmental laws, and with the terms of all Government
Authorizations relating to the Lessee’s conduct of its Business in the Leased Buildings. 

  

	7.7.	Lessee acknowledges that as part of its past practice in operating the Leased Buildings, the Lessee allowed Other Occupants of the Leased Buildings to occupy those spaces designated
on Exhibit A-1 as Other Occupant Space. Some of the Other Occupants of the Leased Buildings have provided conveniences, amenities, or support for Lessee and the Business. Notwithstanding such past practices, or any other circumstance, Lessor has the
right to elect to permit or prohibit the continued occupancy by such Other Occupants of 

  

 28 

	 	 
the Leased Buildings as Lessor may decide in its sole discretion, and without any obligation or liability to Lessee for the consequences of such election,
including, any obligation or liability to continue to provide the conveniences, amenities or support previously provided by the Other Occupants of the Leased Buildings. Lessor also has the right to replace or add Other Occupants of the Leased
Buildings, without any obligation or liability to Lessee, and such Other Occupants of the Leased Buildings shall have the right to share in Lessor’s use of the Common Areas of the Leased Buildings, Common Areas of the Lessee Complex and Common
Areas of the Lessor Complex, including rights to use parking, to the extent possessed by Lessor. 

  

	7.8.	In the event of a default by Lessee under this Lease, Lessee covenants and agrees to reimburse Lessor, in full and promptly upon demand, if Lessor sustains any material Damages or
is reasonably required to expend any money as a result of a default by Lessee hereunder; provided, however, Lessee shall not reimburse Lessor for any Damages resulting from reasonable wear and tear to the Leased Buildings or fully insured Property
Damage. 

  
 Article 8. Registration of the Lease
Right 
  

	8.1.	Lessor hereby consents to the registration of the Lease Right for the benefit of Lessee on the Leased Premises, in accordance with Section 2.3, and shall provide to Lessee all the
necessary documents normally required of a lessor for the registration of the Lease Right thereon on the Closing Date. Lessee shall be entitled to register, on or after the Closing Date, the Lease Right granted under this Agreement with the
pertinent real property registry offices, such Lease Right registration having a priority over any Lien established 

  

 29 

	 	 
on the Leased Premises other than Liens established thereon by Lessor’s mortgagees. This consent by Lessor shall be deemed to apply to Extension Terms;
and Lessor will perform any further requirements of registration of Lease Rights that Lessee may reasonably be deemed necessary or appropriate to clarify and vest necessary title in Lessor to make Lessor’s consent hereunder the only consent
required, which costs and expenses shall be borne by Lessor. The expenses and costs associated with de-registration and re-registration of any prior security interests against Lessor, or after the Closing Date against Lessee, if required pursuant to
this paragraph to establish the lien priority, shall be paid by Lessor. Lessor shall, as a condition to any future lien registered against the Lessor’s interest in land or buildings, require such lien holder to take all actions necessary to
maintain the priority of the Lease Right, with respect to the Leased Buildings during the Lease Term, including any Extension Term. 

  
 Article 9. Use, Improvements and Alterations 
  

	9.1.	Lessee shall not occupy or use any material portion of the Leased Premises, Common Areas of the Leased Buildings and Common Areas of the Lessor Complex for any purpose whatsoever,
other than in connection with the operation of the Business and in compliance with all Applicable Laws and the Rules and Regulations in all material respects. This Agreement and all the terms, covenants and conditions hereof are in all respects
subject and subordinate to all Applicable Laws affecting the Leased Buildings. 

  

	9.2.	Lessee shall maintain and repair all nonstructural elements, furniture, fixtures, and equipment in the Leased Premises. 

  

 30 

	9.3.	Lessee, in its sole discretion, but with prior written notice to Lessor, shall have the right, from time to time to make, or cause to be made, at its sole cost and expense,
improvements, additions, alterations and changes (collectively, the “Alterations”) to the Leased Premises that it deems necessary or desirable to carry on any activity or use consistent with this Agreement; provided (a) any such
Alterations shall be in compliance with Applicable Laws, (b) no such Alterations materially adversely affect the value of the applicable Leased Buildings or Lessor’s contemporaneous occupancy, if any, of the Leased Buildings, and (c) at
Lessor’s request, Lessee is required to restore the affected Leased Building to the condition that existed prior to the Alterations by the end of the Lease Term, reasonable wear and tear and insured Property Damage excepted. Lessee shall bear
all Taxes to be imposed on all Alterations and facilities newly or additionally installed by Lessee whether a notice of Taxes was issued to Lessee or Lessor. Notwithstanding the foregoing requirement that only notice be provided to the Lessor,
Lessee shall submit a written plan for any material Alteration and shall obtain Lessor’s express consent prior to making any such material Alteration, which consent shall not be unreasonably withheld or delayed. 

  
 Article 10. Restricted Matters for Lessee 
  

	10.1.	Lessee shall comply with the Rules and Regulations attached hereto as Exhibit E. 

  

	10.2.	During the Lease Term, Lessee, its employees, invitees, and agents may park passenger cars without additional charge (other than as specified herein) on a first come first served
basis in the R Building. With respect to the parking lot on the second floor of the R Building, only customers of Lessor’s Business or Lessee’s Business may park passenger cars thereon. 

  

 31 

 Article 11. Lessor Work 
  

	11.1.	Lessor shall provide Lessee with advance notice of any repair, alteration or remodeling of the Leased Buildings by Lessor in accordance with this Agreement (“Lessor Work”)
as soon as reasonably practicable but in any event Lessor shall provide Lessee with no less than fifteen (15) days advance notice of any such Lessor Work, except to the extent an emergency requires earlier performance of such Lessor Work, and then
with such advance notice as is commercially reasonable. If as a result of the Lessor Work, the Lessee’s Business at the Leased Premises at any time cannot be conducted in all material respects equivalent to the conduct of such Business prior to
such Lessor Work, then in any of such event, (a) Rent for the applicable Leased Premises shall be abated based on the square meters of the Leased Premises which cannot be leased and occupied, (b) to the extent that Substitute Premises are in the
possession of Lessor, Lessor shall immediately provide Substitute Premises, or to the extent that Substitute Premises are not in the possession of Lessor, Lessor shall use commercially reasonable efforts to locate Alternate Space, and (c) Lessor
shall pay for all of the Lessee’s expenses in demobilization from and remobilization to the Substitute Premises. Lessee shall pay Rent attributable to the square meters provided in any Substitute Premises based on the formula in Exhibit C or
shall pay rent charged by the landlord for the Alternate Space to the extent such Alternate Space is provided by third parties. Lessor shall not be responsible for the interruption or shortage of any services or suspension of the use of any common
facilities that were caused by the Lessor Work. Upon the earlier to occur of the completion of the Lessor 

  

 32 

	 	 
Work or the end of the interference with the Business of Lessee, (i) Lessee is obligated to resume occupancy of the Leased Premises, and (ii) Lessee shall
resume the payments of the next regularly scheduled Rent, Lessor Maintenance Fee, Other Costs and related VAT in accordance with the terms of this Agreement, pro rated, as applicable, for the number of days of any partial month of Rent.

  

	11.2.	If any Lessor Work would likely materially affect the Business or materially reduce the size of the Leased Premises, Lessor shall obtain Lessee’s consent prior to the
commencement of any such Lessor Work, such consent not to be unreasonably withheld. 

  
 Article 12. Indemnification 
  

	12.1.	Lessor shall indemnify Lessee and its Indemnified Persons (the “Lessee Indemnified Parties”), and hold the Lessee Indemnified Parties harmless from and against, any and
all Damages arising out of, resulting from or relating to claims by third parties arising from the negligence of Lessor, except to the extent such Damage is caused by the negligence or willful misconduct of any such Lessee Indemnified Party.

  

	12.2.	Lessee shall indemnify Lessor and its Indemnified Persons (the “Lessor Indemnified Parties”) and hold the Lessor Indemnified Parties harmless from and against, any and all
Damages arising out of, resulting from or relating to claims by third parties arising from the negligence of Lessee, except to the extent such Damage is caused by the negligence or willful misconduct of any such Lessor Indemnified Party.

  

	12.3.	Lessee agrees to indemnify and hold harmless Lessor for, from and against all Damages asserted against, resulting to, imposed on, or incurred by Lessor arising directly or

  

 33 

	 	 
indirectly from Lessee’s operations at the Lessee’s Mask Shop(s) and Property Analysis Rooms in any of the Leased Buildings, including Damages
resulting from violations of Applicable Laws, from environmental conditions, and from environmental releases except to the extent caused by Lessor. 

  
 Article 13. Termination; Reduction of Leased Premises 
  

	13.1.	Termination. This Agreement may be terminated at any time during the Lease Term of this Agreement upon the occurrence of any of the following events:

  

	 	(a)	by the non-breaching Party serving a written notice of termination to the other Party and to the Coordinating Committee in the event of a material breach or default by such other
Party of its obligations hereunder, which default shall not have been cured by the other Party, or otherwise resolved by the Coordinating Committee within sixty (60) days after written notice is provided by the non-breaching Party to the other Party
and the Coordinating Committee; 

  

	 	(b)	by Lessor’s serving sixty (60) days prior written notice thereof to Lessee if Lessee ceases to conduct any Business (provided that an assignment pursuant to Article 14 shall
not trigger the application of this provision in so far as such assignee does not cease to conduct the Business); or 

  

	 	(c)	By Lessee with ninety (90) days prior written notice to Lessor for any reason whatsoever. 

  

	13.2.	Upon termination of this Agreement, each Party shall discontinue the use of all Confidential Information provided by the other Party in connection with this Agreement,

  

 34 

	 	 
and shall promptly return to the other Party any and all Confidential Information, including documents originally conveyed to it by the other Party and any
copies thereof made thereafter. 

  

	13.3.	Termination of this Agreement shall be without prejudice to the accrued rights and liabilities of the Parties prior to the termination of this Agreement. 

 

	13.4.	The respective rights and obligations of the Parties under any Sections which by their nature are intended to extend beyond termination, shall survive the termination or expiry of
this Agreement. 

  

	13.5.	In the event of the termination of this Agreement pursuant to Section 13.1 hereof, a written notice thereof shall forthwith be given to the other Party specifying the provision
hereof pursuant to which such termination is made, and Lessee or Lessor (as the case may be) shall only be liable thereafter for (i) Damages suffered as a result of its fraud or willful breach of this Agreement that occurred prior to the termination
of this Agreement, or (ii) the obligations and liabilities of the Parties pursuant to this Agreement that accrued prior to the termination of this Agreement. 

  

	13.6.	In addition, upon ninety (90) days’ prior written notice to Lessor, Lessee shall have the right to reduce the Leased Premises and the corresponding Rent and Lessor Maintenance
Fee. 

  

	13.7.	In no event shall a Party be liable for Excluded Damages. 

  

 35 

 Article 14. Assignment 
  

	14.1.	This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns; provided, however, that no Party hereto
will assign or sublet its rights or delegate its obligations under this Agreement without the express prior written consent of the other Party hereto, except that (i) Lessor may assign its rights hereunder as collateral security to any bona fide
financial institution engaged in financing in the ordinary course of its business in providing financing to the Warrant Issuer or its Subsidiaries and any of the foregoing financial institutions may assign such rights in connection with a sale of
Lessor’s business in the form then being conducted by Lessor substantially as an entirety; (ii) Lessor and Lessee each may, upon written notice to the other Party (but without the obligation to obtain the consent of such other Party), assign
this Agreement or any of its rights and obligations under this Agreement to any person, entity or organization that succeeds (by purchase, merger, operation of law or otherwise) to all or substantially all of the capital stock, assets or business of
such party, all or substantially all of its assets and liabilities or to all or substantially all of the assets and liabilities of the portion of the Party’s business to which the subject of this Agreement relates or of a division of either
Party, if such person or entity agrees in writing to assume and be bound by all of the relevant obligations of such Party under this Agreement; and (iii) Lessor may, upon written notice to Lessee (but without the obligation to obtain the consent of
Lessee), assign this Agreement or any of its rights and obligations under this Agreement to one or more direct or indirect Subsidiaries of Warrant Issuer. 

  

 36 

 Article 15. Quiet Enjoyment 
  
 Without prejudice to Lessor’s rights under this Agreement or under the Applicable Laws, so long as Lessee pays the Rent, the Lessor
Maintenance Fee, and Other Costs, and observes all other material terms, conditions and covenants hereof, Lessor shall ensure that Lessee has the right to quietly enjoy the Leased Buildings without hindrance, molestation or interruption during the
Lease Term, subject to the terms and conditions of this Agreement. 
  
 Article 16. Surrender 
  

	16.1.	Upon the expiration or termination of this Agreement, Lessor and Lessee shall consult in good faith to determine a reasonable grace period (which shall not be more than 6 months)
(the “Grace Period”) for Lessee to peaceably and quietly vacate and surrender the Leased Premises to Lessor. For the avoidance of doubt, Lessee shall be obligated to pay the Rent and Lessor Maintenance Fee for the period until the date of
surrender of the Leased Premises to Lessor. 

  

	16.2.	During the Grace Period, Lessee shall, among other things, restore the Leased Premises to their condition equivalent to that of the Closing Date, reasonable wear and tear and fully
insured Property Damage excepted, and as otherwise reasonably acceptable to Lessor by removing at its own expense any Alterations made by Lessee in accordance with the terms and conditions of this Agreement. In the event Lessee fails to vacate,
surrender and restore the Leased Premises by the end of the Grace Period, Lessor may move, remove or dispose of any Alterations or other property or belongings remaining in the Leased Premises, and all reasonable expenses incurred therefrom shall be
borne by Lessee. 

  

 37 

 Article 17. Disputes and Governing Law 
  

	17.1.	This Agreement shall be governed by and construed in accordance with the laws of Korea, without reference to the choice of law principle thereof. 

  

	17.2.	Any Party seeking the resolution of a dispute arising under this Agreement must provide written notice of such dispute to the other Party, which notice shall describe the nature of
such dispute. All such disputes shall be referred initially to the Coordinating Committee for resolution. Decisions of the Coordinating Committee under this Section 17.2 shall be made by unanimous vote of all members and shall be final and legally
binding on the Parties. If a dispute is resolved by the Coordinating Committee, then the terms of the resolution and settlement of such dispute shall be set forth in writing and signed by both Parties. In the event that the Coordinating Committee
does not resolve a dispute within thirty (30) days of the submission thereof, such dispute shall be resolved in accordance with Section 17.3. Notwithstanding the foregoing, Lessor and Lessee shall each continue to perform their obligations under
this Agreement during the pendency of such dispute in accordance with this Agreement. 

  

	17.3.	The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction to prevent any breach of this Agreement and to enforce specifically the terms and provisions of this Agreement by bringing a relevant action in the
Seoul Central District Court located in Seoul, Korea, in addition to any other remedy to which any Party may be entitled at law or in equity. In addition, the Parties agree that any disputes, claims or controversies between the Parties arising out
of or relating to this Agreement, whether in contract, tort, equity or otherwise and whether relating to the meaning, interpretation, effect, validity, performance or enforcement of this Agreement shall be submitted to the exclusive jurisdiction of
the Seoul Central District Court. 

  

 38 

 Article 18. Change of Applicable Laws 
  
 Lessor shall process, and Lessee shall pay for, every zoning requirement or the requirements imposed by the Applicable Laws, which arise
from change of conditions caused by Lessee subsequent to the Closing Date from the operation of the Business, as they come into effect during the Lease Term. 
  
 Article 19. Insurance 
  

	19.1.	Lessor shall obtain from, keep in force during the Lease Term with, and pay all premiums due to, an insurer(s) holding a A.M. Best Rating of B+ or higher, and reasonably acceptable
to Lessee, “all risk” property insurance on the Leased Buildings, with an insurer(s) holding a A.M. Best Rating of B+ or higher and reasonably acceptable to Lessee, insuring 100% of the replacement value thereof. This insurance shall
include, but not be limited to, fire and extended coverage perils, and shall include a waiver of claims and waiver of subrogation against the Lessee. Said insurance shall provide for payment of Damages thereunder to Lessor or to the holders of the
mortgages or deeds of trust on the Leased Buildings. 

  

	19.2.	Lessee shall obtain and keep in force during the Lease Term, at its expense, on its own furniture, furnishings, fixtures and equipment located in the Leased Buildings, with
companies reasonably acceptable to Lessor, policies of fire and extended coverage insurance with standard coverage vandalism, malicious mischief and special extended perils (all risk) and shall include a wavier of claims and waiver of subrogation
against the Lessor. 

  

 39 

	19.3.	Lessor and Lessee shall each obtain from, keep in force during the Lease Term with, and pay all premiums due to, an insurer(s) holding a A.M. Best Rating of B+ or higher, Standard
Commercial General Liability Insurance. The limits of liability of such insurance shall be in an amount not less than One Million Dollars ($1,000,000.00) per occurrence, Personal Injury including death and One Million Dollars ($1,000,000.00) per
occurrence, Property Damage Liability or One Million Dollars ($1,000,000.00) combined single limit for Personal Injury and property Damage Liability. 

  
 Article 20. Signage 
  
 Lessee shall not make any changes to the exterior of the Leased Buildings, install any exterior lights, decorations, balloons, flags, pennants, banners, or paintings, or
erect or install any signs, windows or door lettering, placards, or advertising media of any type which can be viewed from the exterior of the Leased Buildings, without Lessor’s prior written consent which shall not be unreasonably withheld or
delayed. Notwithstanding the foregoing, Lessee has the right to install signs, decorations, advertising media, blinds, draperies and other window treatment or bars or other security installations (i) inside the Leased Premises and not visible from
outside the Leased Buildings identifying the presence of Lessee at its sole discretion, or (ii) inside the Leased Premises and visible from outside the Leased Buildings, located in the Common Areas of the Leased Buildings, or located outside the
Leased Buildings identifying the presence of Lessee in form and fashion consistent with Lessor’s current signage or otherwise subject to Lessor’s reasonable approval. Upon surrender or vacation of the Leased Premises, Lessee shall have

  

 40 

 removed all signs it has installed and repair, paint, and/or replace the building facia surface to which its signs are
attached. Lessee shall obtain all applicable Governmental Authorizations for sign and exterior treatments at its sole cost and expense. Signage rights in the Common Areas of the Leased Buildings shall be shared equally between Lessor and Lessee. If
the size of the signage is limited in the Common Areas of the Leased Buildings or outside of the Leased Buildings, Lessee shall be entitled to a share of signage equal to not less than its proportionate share of all signage which is permitted at the
Leased Buildings based on the square meters of the Leased Premises compared to the square meters available for occupancy in the Leased Buildings.  
  
 Article 21. Property Damage and Condemnation 
  

	21.1.	In the event that any of the Leased Buildings shall be damaged or destroyed by fire or other event (each, a “Property Damage”) the Lessor shall promptly commence repair of
the applicable Leased Building and diligently restore the same to substantially the same condition as existed immediately prior to the event of such Property Damage. During the period from the date of such Property Damage until the applicable Leased
Building is repaired and restored, (a) Lessee’s obligation to pay the Rent, Lessor Maintenance Fee, any Other Costs and related VAT due hereunder shall abate based on the square meters of the Leased Premises which are untenantable as a result
of such damage, based on the formula in Exhibit C, (b) if Lessor caused the Property Damage, Lessor shall contemporaneously provide Lessee with premises that are vacant, in substitution for and equivalent to the affected Leased Building for
which Lessee shall pay Rent attributable to the square meters provided based on the formula in Exhibit C (“Substitute Premises”), and (c) if Lessor did not cause the Property Damage, (i) to the extent that Substitute Premises are in
the possession of Lessor, Lessor shall provide the Substitute Premises for 

  

 41 

	 	 
which Lessee shall pay Rent attributable to the square meters provided based on the formula in Exhibit C, or (ii) to the extent that Substitute
Premises are not in the possession of Lessor, Lessor shall use commercially reasonable efforts to locate Alternate Space for which Lessee shall pay rent to the extent such Alternate Space is provided by third parties. Upon the earlier to occur of
the completion of such repair or the end of the interference with the Business of Lessee, (i) Lessee is obligated to resume occupancy of the Leased Premises, and (ii) Lessee shall resume the next regularly scheduled payments of Rent, Lessor
Maintenance Fee, Other Costs and related VAT in accordance with the terms of the Agreement, pro rated, as applicable, for the number of days of any partial month of Rent. 

  

	21.2.	If (a) the whole of any Leased Building shall be taken or condemned for a public or quasi-public use or purpose by a competent authority, or (b) such portion of any Leased Building
or Leased Premises shall be so taken that as a result thereof the balance cannot, continue to be used by Lessee for the reasonable conduct of the Business, then in either of such events (x) Lessor shall immediately provide Substitute Premises, and
(y) any award, compensation, or damages (hereinafter sometimes called the “award”), shall be paid to and be the sole property of Lessor, but nothing therein shall preclude Lessee from proving (to the extent allowable by law) its damages
with respect to moving expenses and Damages of personal property, and receiving an award therefor. In such event, Lessee shall continue to pay Rent until this Agreement is terminated and shall continue to pay rent under the lease for the Substitute
Premises. 

  

	21.3.	If only a part of any Leased Premises shall be so taken or condemned, and, as a result thereof, the balance of the Leased Premises can be used by Lessee, in its reasonable

  

 42 

	 	 
opinion, for the reasonable conduct of the Business, Lessor shall perform such construction to the balance of the applicable Leased Premises to make it
usable for Lessee. Rent shall be equitably abated based on the square meters that are untenantable as a result of such taking based on the formula in Exhibit C. Any portion of the award which has not been expended by Lessor for such repair or
restoration shall be retained by Lessor as Lessor’s sole property. 

  

	21.4.	Intentionally Deleted. 

  
 Article 22. Lessor Waiver 
  
 Lessor agrees to execute, upon the request of Lessee, an agreement in favor of any lender to Lessee, agreeing to allow such lender to temporarily occupy the Leased Premises if Lessee defaults under the lender’s loan, for the limited
purpose of recovering any collateral of such lender located at the Leased Premises, provided such agreement provides for the payment of the Rent, Lessor Maintenance Fee, Other Costs and VAT by the Lessee’s lender during the period of such
occupancy. 
  
 Article 23. Intentionally Deleted 

 
 Article 24. Force Majeure 
  

	24.1.	Neither Party shall be liable to the other Party for failure of or delay in the performance of any obligations under this Agreement due to causes reasonably beyond its control
including (i) war, insurrections, riots, explosions, inability to obtain raw materials due to then current market situation; (ii) natural disasters and acts of God, such as violent storms, earthquakes, floods, and destruction by lightning; (iii) the
intervention of any 

  

 43 

	 	 
Governmental Entity or changes in relevant laws or regulations which restrict or prohibit either Party’s performance of its obligations under this
Agreement or implementation of this Agreement; or (iv) strikes, lock-outs and work-stoppages, which are beyond the reasonable control of the Party claiming the benefit (each, an “Event of Force Majeure”). Upon the occurrence of an Event of
Force Majeure, the affected Party shall notify the other Party as soon as possible of such occurrence, describing the nature of the Event of Force Majeure and the expected duration thereof. Notwithstanding the foregoing, Lessee shall be under
continuing obligation to make the payments required hereunder for any Rent, Lessor Maintenance Fee, Other Costs and the corresponding VAT payable by Lessee, which was payable by Lessee prior to the occurrence of an Event of Force Majeure.

  

	24.2.	If a Party is unable, by reason of an Event of Force Majeure, to perform any of its obligations under this Agreement, then such obligation shall be suspended to the extent and for
the period that the affected Party is unable to perform. If this Agreement requires an obligation to be performed by a specified date, such date shall be extended for the period during which the relevant obligation is suspended due to such an Event
of Force Majeure under this Agreement. 

  
 Article
25. Coordinating Committee 
  

	25.1.	Within thirty (30) days after the date hereof, the Parties shall establish a coordinating committee (the “Coordinating Committee”) which shall consist of four (4) members,
two (2) of which shall be appointed by Lessor and two (2) of which shall be appointed by Lessee. Each Party, upon prior written notice to the other Party, may from time to time remove or replace any member appointed by such Party.

  

 44 

	25.2.	Except as the Parties may otherwise agree in writing, the Coordinating Committee shall have the power and the responsibility under this Agreement to: 

  

	 	(a)	act as a forum for the liaison between the Parties with respect to the day-to-day implementation of this Agreement; 

  

	 	(b)	subject to Article 17, seek to resolve disputes; and 

  

	 	(c)	undertake such other functions as the Parties may agree in writing. 

  
 Article 26. Confidentiality 
  

	26.1.	Confidentiality. Neither Party shall, except as expressly permitted by the terms of this Agreement, disclose to any third party the terms and conditions of this Agreement,
the existence of this Agreement and any Confidential Information which either Party obtains from the other Party in connection with this Agreement and/or use such Confidential Information for any purposes whatsoever other than those contemplated
hereunder, provided, however, that this Agreement (and its terms and conditions) may be disclosed and filed publicly in connection with a public offering of securities by Lessee or its Affiliates. “Confidential Information” shall mean any
and all information including technical data, trade secrets or know-how, disclosed by either Party to the other Party in connection with this Agreement, which is marked as “Proprietary” or “Confidential” or is declared by the
other Party, whether in writing or orally, to be confidential, or which by its nature would reasonably be considered confidential. 

  

 45 

	26.2.	The obligation of confidentiality in Section 26.1 shall not apply to any information that: (a) was known to the other Party without an obligation of confidentiality prior to its
receipt thereof from the disclosing Party; (b) is or becomes generally available to the public without breach of this Agreement, other than as a result of a disclosure by the recipient Party, its representatives, its Affiliates or the
representatives of its Affiliates in violation of this Agreement; (c) is rightfully received from a third party with the authority to disclose without obligation of confidentiality and without breach of this Agreement; or (d) is required by law or
regulation to be disclosed by a recipient Party or its representatives (including by oral question, interrogatory, subpoena, civil investigative demand or similar process), provided that written notice of any such disclosure shall be provided to the
disclosing Party in advance. If a Party determines that it is required to disclose any information pursuant to applicable law (including the requirements of any law, rule or regulation in connection with a public offering of securities by Lessor or
its Affiliates) or receives any demand under lawful process to disclose or provide information of the other Party that is subject to the confidentiality provisions hereof, such Party shall notify the other Party prior to disclosing and providing
such information and shall cooperate at the expense of the requesting Party in seeking any reasonable protective arrangements requested by such other Party. Subject to the foregoing, the Party that receives such request may thereafter disclose or
provide information to the extent required by such law or by lawful process. 

  
 Article 27. Miscellaneous 
  

	27.1.	Exercise of Right. A Party may exercise a right, power or remedy at its discretion, and separately or concurrently with another right, power or remedy. A single or partial

  

 46 

	 	 
exercise of a right, power or remedy by a Party does not prevent a further exercise of that or of any other right, power or remedy. A failure to exercise a
right, power or remedy or a delay in exercising a right, power or remedy by a Party does not prevent such Party from exercising the same right thereafter. 

  

	27.2.	Extension; Waiver. At any time during the Lease Term, each of Lessor and Lessee may (a) extend the time for the performance of any of the obligations or other acts of the
other or (b) waive any inaccuracies in the representations and warranties of the other contained in this Agreement or in any document delivered pursuant to this Agreement. Any agreement on the part of a Party to any such extension or waiver shall be
valid only if set forth in an instrument in writing signed on behalf of such Party. The failure of any Party to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of those rights. Any rights under this Agreement
may not be waived except in writing signed by the Party granting the waiver or varied except in writing signed by the Parties. 

  

	27.3.	Notices. Any notice, request, demand, waiver, consent, approval or other communication which is required or permitted to be given to any Party shall be in writing and shall
be deemed duly given only upon delivery to the Party personally (including by reputable overnight courier service), when telecopied (with confirmation of transmission having been received) during normal business hours or three days after being
mailed by registered or certified mail (return receipt requested), with postage and registration or certification fees thereon prepaid, addressed to the Party at its address set forth below (or at such other address for a party as shall be specified
by such Party by like notice): 

  

 47 

 If to Lessor, to: 
  
 MagnaChip Semiconductor, Ltd. 
 1 Hyangjeong-dong 
 Heungduk-gu 
 Cheongju City 
 Chung Cheong Bok-do 
 Korea 
 Fax: +82-43-270-2134 
 Attention: Dr. Youm Huh 
  
 with a copy to: 
  
 Dechert LLP 
 30 Rockefeller Plaza 
 New York, NY 10112 
 Telephone: (212) 698-3500 
 Facsimile: (212) 698-3599 
 Attention: Geraldine A. Sinatra, Esq. 
                   Sang H. Park, Esq.

  
 If to Lessee, to: 
  
 Hynix Semiconductor Inc. 
 Hynix Youngdong Building 891 
 Daechi-dong 
 Kangnam-gu, Seoul 135-738 
 Korea 
 Fax:
+82 2 3459 3647 
 Attention: Mr. O.C. Kwon 
  

	27.4.	Fees and Expenses. All costs and expenses incurred in connection with this Agreement shall be paid by the Party incurring such expenses, except as specifically provided to
the contrary in this Agreement. 

  

	27.5.	Entire Lease; No Third Party Beneficiaries. This Agreement (a) constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings,

  

 48 

	 	 
both written or oral, between the Parties with respect to the subject matter hereof and (b) is not intended to confer upon any person other than the Parties
hereto any rights or remedies hereunder. 

  

	27.6.	Severability of Provisions. Any term or provision of this Agreement that is held by a court of competent jurisdiction or other authority to be unlawful, invalid, void or
unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any
other jurisdiction. If the final judgment of a court of competent jurisdiction or other authority declares that any term or provision hereof is unlawful, invalid, void or unenforceable, the Parties agree that the court making such determination
shall have the power to reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or to replace any unlawful, invalid, void or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the unlawful, invalid or unenforceable term or provision. 

  

	27.7.	Amendment and Modification. This Agreement (for the avoidance of doubt, including Exhibits attached hereto) may be amended, modified and supplemented in any and all respects,
but only by a written instrument signed by the Parties expressly stating that such instrument is intended to amend, modify or supplement this Agreement. 

  

	27.8.	Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement. 

  

 49 

	27.9.	Election of Remedies. Neither the exercise of nor the failure to exercise a right or to give notice of a claim under this Agreement shall constitute an election of remedies
or limit any Party in any manner in the enforcement of any other remedies that may be available to such Party, whether at law or in equity. 

  

	27.10.	Language. This Agreement is being originally executed in the English language only. In the event that the Parties agree to have a Korean version of this Agreement following
signing, this Agreement may be translated into Korean. The Parties acknowledge that the Korean version of this Agreement shall be for reference purpose only, and in the event of any inconsistency between the two texts, the English version shall
control. 

  
 [SIGNATURE PAGE TO FOLLOW] 

 

 50 

 IN WITNESS WHEREOF, each of the Parties has caused this Lease to be executed by its duly authorized representatives as of
the date first above written. 
  

			
	 MagnaChip Semiconductor, Ltd.

		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	Hynix Semiconductor Inc.
		
	By:	 	  

	Name:	 	 
	 Title:Land Lease and Easement Agreement Dated as of October 6, 2004

 Exhibit 10.12 
  
 Execution Copy 
  
 LAND LEASE AND EASEMENT AGREEMENT 
  
 between 
  
 Hynix Semiconductor Inc. 
  
 as Lessor 
  
 and

  
 MagnaChip Semiconductor, Ltd. 
  
 as Lessee 
  
 with respect to 
  
 certain land located in the Cheong-Ju Complex 
  
 in Cheong-Ju, the Republic of Korea 
  
 October 6, 2004 
  
 /*****/ = Portions of this exhibit are subject to a request for confidential treatment and have been redacted and filed separately with the Securities and Exchange Commission. 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 Article 1.
	  	Definitions	  	1
			
	 Article 2.
	  	Grant of Lease and Easement	  	6
			
	 Article 3.
	  	Term	  	7
			
	 Article 4.
	  	Rent	  	8
			
	 Article 5.
	  	Representations, Warranties and Covenants	  	9
			
	 Article 6.
	  	Maintenance and Other Expenses	  	12
			
	 Article 7.
	  	Registration of the Lease Right and Easement Right	  	13
			
	 Article 8.
	  	[Intentionally Deleted]	  	14
			
	 Article 9.
	  	Use and Maintenance	  	14
			
	 Article 10.
	  	Termination	  	15
			
	 Article 11.
	  	Sublease and Assignment	  	15
			
	 Article 12.
	  	Quiet Enjoyment; Indemnification	  	16
			
	 Article 13.
	  	Surrender	  	16
			
	 Article 14.
	  	Disputes and Governing Law	  	17
			
	 Article 15.
	  	Change of Applicable Laws of Korea	  	17
			
	 Article 16.
	  	Alterations	  	18
			
	 Article 17.
	  	Right of First Refusal	  	18
			
	 Article 18.
	  	Additional Warehouse	  	19
			
	 Article 19.
	  	Insurance	  	19
			
	 Article 20.
	  	Signage	  	20
			
	 Article 21.
	  	Force Majeure	  	20
			
	 Article 22.
	  	Confidentiality	  	20
			
	 Article 23.
	  	Miscellaneous	  	21

  

			
	EXHIBIT A	  	CHEONG-JU COMPLEX
	EXHIBIT B	  	DESCRIPTION OF THE SITE, ACCESS AREAS AND EASEMENT AREAS
	EXHIBIT C	  	CONSENTS
	EXHIBIT D	  	DESCRIPTION OF THE PORTIONS TO BE SUB-LEASED TO VEOLIA
	EXHIBIT E	  	SIGNAGE
	SCHEDULE 5.1(d)	  	VEOLIA LEASE RIGHTS
	SCHEDULE 5.1(e)	  	VEOLIA CONSENTS

 
LAND LEASE AND EASEMENT AGREEMENT 
  
 This LAND LEASE AND EASEMENT AGREEMENT (this “Agreement”), dated as of October 6, 2004, is entered into by and between: 
  

	(1)	Hynix Semiconductor Inc., a company organized and existing under the laws of the Republic of Korea (“Korea”) with its registered office at San-136-1, Ami-Ri, Bubal-Eub,
Ichon-Si, Kyoungki-Do, Korea (“Lessor”); and 

  

	(2)	MagnaChip Semiconductor, Ltd., a company organized and existing under the laws of Korea with its registered office at 1 Hyanjeong-dong, Heungduk-gu, Cheongju City, Chung Cheong
Bok-do, Korea (“Lessee”) (each a “Party”, and collectively, the “Parties”). 

  
 RECITALS 
  
 WHEREAS, the Parties have entered into a certain business transfer agreement dated as of June 12, 2004 as amended (the “BTA”) pursuant to which, among other things, Lessee has agreed to acquire the Acquired
Assets (as defined in the BTA) from Lessor subject to the terms and conditions set forth in the BTA; 
  
 WHEREAS, the Parties desire to enter into an agreement as contemplated by the BTA whereby Lessor grants lease rights and easement rights to Lessee as to certain parts of parcels of land, which are necessary for
Lessee’s ownership of certain buildings that are now or hereafter used in the Business (as defined below) and for its operation of facilities necessary for its Business, in accordance with this Agreement; and 
  
 WHEREAS, the execution and delivery of this Agreement is a condition to the Closing under the
BTA. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements hereinafter set forth, and intending to be legally bound hereby, each of Lessor and Lessee agrees as follows: 
  
 Article 1. Definitions 
  

	1.1.	Unless otherwise defined herein or in the BTA, all capitalized terms shall have the meanings set forth below: 

  
 “Access Areas” shall mean the access roads and areas located on
the Lease Rights Site I, as more specifically shown on Exhibit B. 
  
 “Additional Warehouses” shall have the meaning ascribed to such term in Section 18.1. 
  
 “Affiliate” shall have the meaning ascribed to such term in the BTA. 

 “Amended Section 6.5 of the BTA” shall mean Section 6.5 of the BTA as amended by an First
Amendment to Business Transfer Agreement made and entered into on October 6, 2004 by and between Lessor and Lessee. 
  
 “Applicable Laws” shall mean all laws, constitutions, statutes, codes, ordinances, decrees, rules, regulations, municipal by-laws, judicial or
arbitral or administrative or ministerial or departmental or regulatory judgments, orders, decisions, rulings or awards, consent orders and decrees, policies, guidelines or any interpretations of any of the foregoing, including general principles of
civil law and equity, issued by any Governmental Entity having or exercising jurisdiction over or otherwise affecting any Party, the Business or the Land. 
  
 “BTA” shall have the meaning ascribed to such term in the Recitals. 
  
 “Buildings” shall mean the “R” Building, “C1” Building and “C2” Building, as well as
the to be built Gas Warehouse Building and Waste Water Facility Building and such other buildings, if any, and improvements affixed to such buildings now or hereafter owned by Lessee located in the Cheong-Ju Complex, each of which Building is owned
by Lessee, as the same may be altered or replaced. 
  
 “Business” shall have the meaning ascribed to such term in the BTA including all Permitted Uses. 
  
 “Cheong-Ju Complex” shall mean Lessor’s manufacturing, testing, packaging and research and development facilities and appurtenant areas
located in Cheong-Ju, Korea, as more specifically identified in Exhibit A attached hereto. 
  
 “Closing Date” shall have the meaning ascribed to such term in the BTA. 
  
 “Confidential Information” shall mean any and all information including technical data, trade secrets or know-how, disclosed by either Party to
the other Party in connection with this Agreement, which is marked as “Proprietary” or “Confidential” or is declared by the other Party, whether in writing or orally, to be confidential, or which by its nature would reasonably be
considered confidential. 
  
 “Consents” shall mean any
consents, approvals, waivers or authorizations to be obtained from, or notices to be given to, any persons or entities, and includes Governmental Authorizations. 
  
 “Damages” shall mean any and all losses, settlements, expenses, liabilities, obligations, claims, damages
(including any governmental penalty or costs of investigation, clean-up and remediation), deficiencies, royalties, interest, costs and expenses (including reasonable attorneys’ fees and all other expenses reasonably incurred in investigating,
preparing or defending any litigation or proceeding, commenced or threatened incident to the successful enforcement of this Agreement), the extent of which are recoverable under Korean law. Damages also shall include, if applicable, any and all
increases in insurance premiums that are reasonably demonstrably attributable to the breach by Lessee or Lessor, as the case may be, of its representations, warranties, agreements and covenants expressly 
  

 2 

 contained in this Agreement, or negligence, gross negligence, intentional breach or willful misconduct of
Lessee or Lessor, as the case may be, for the two following annual policy periods. 
  
 “Due Date” shall have the meaning ascribed to such term in Section 4.3. 
  
 “Easement Right” shall mean the right to use all necessary and appropriate roads for ingress to, egress from and access to and from all
locations at the Cheong Ju Complex and the right to use certain land to own, use or perform maintenance, repair and replacement of utility, pipeline, conduit and wiring systems at the Cheong Ju Complex serving the locations leased by Lessee or owned
by Lessor, as the case may be, each of which is on an equal and shared basis with the owner or lessee, as the case may be, of relevant land. 
  
 “Easement Site” shall mean Easement Site I and Easement Site II. 
  
 “Easement Site I” shall mean the main access roads from public roads to the Lease Right Site I, as more
specifically shown on Exhibit B. 
  
 “Easement Site II”
shall mean the access roads, areas and the parking lots at the Cheong Ju Complex, as more specifically shown on Exhibit B. 
  
 “Event of Force Majeure” shall have the meaning ascribed to such term in Section 21.1. 
  
 “Excluded Damages” shall mean any punitive damages. 
  
 “Execution Date” shall mean the date of this Agreement.

  
 “Expansion Area” shall have the meaning ascribed to
such term in Section 17.1. 
  
 “Governmental
Authorization” shall mean any approval, consent, license, permit, waiver or other authorization issued, granted, given or otherwise made available by or under the authority of any Governmental Entity or otherwise pursuant to any Applicable Law,
and any registration with, or report or notice to, any Governmental entity pursuant to any Applicable Law, including those listed on Exhibit C. 
  
 “Governmental Entity” shall mean a court, arbitral tribunal, administrative agency or commission or other governmental or other regulatory
authority or agency. 
  
 “Grace Period” shall have the
meaning ascribed to such term in Section 13.1. 
  
 “Hynix
Building” shall mean any building in the Cheong-Ju Complex other than any of the Buildings. 
  
 “Hynix Easement Right” shall mean the Easement Right over the Access Areas on an equally shared basis with Lessee. 
  

 3 

 “Hynix Land” shall mean the portions of the Cheong-Ju Complex land, excluding the Land.

  
 “Indemnified Person” of a Party shall mean the
Party and its Subsidiary and any shareholder, director, officer, employee or agent of the Party or such Subsidiary. 
  
 “Invoice” shall have the meaning ascribed to such term in Section 4.2. 
  
 “Land” shall mean (a) the Lease Rights Site I, (b) Lease Rights Site II, (c) Easement Site I and (d) Easement Site
II located in the Cheong-Ju Complex, as more specifically identified in Exhibit B, all of which are subject to the lease or easement rights under this Agreement. 
  
 “Lease Right” shall have the meaning ascribed to such term in Section 2.5. 
  
 “Lease Rights Site” shall mean the Lease Rights Site I and the
Lease Rights Site II. 
  
 “Lease Rights Site I” shall
mean the Site and the Access Areas. 
  
 “Lease Rights Site
II” shall mean certain lots on which the Gas Warehouse Building and the Waste Water Facility Building will be built by Lessee, as more specifically identified in Exhibit B attached hereto. 
  
 “Lease Term” shall have the meaning ascribed to such term in
Section 3.1. 
  
 “Lessee Easement Rights Consents”
shall have the meaning ascribed to such term in Section 5.2(e). 
  
 “Lessor Easement Rights Consents” shall have the meaning ascribed to such term in Section 5.1(e). 
  
 “Lessor Lease Rights Consents” shall have the meaning ascribed to such term in Section 5.1(e). 
  
 “Lien” shall mean any lien, charge, claim, agreement to sell,
pledge, judgment, security interest, conditional sale agreement or other title retention agreement, lease, mortgage, deed of trust, security agreement, right of first refusal or offer (or other similar right), option, restriction, tenancy, license,
covenant, encroachment (whether upon any real property or by any improvement situated on any real property onto any adjoining real property or onto any easement area), right of way, easement, title defect or other encumbrance or title matter or
interest in real estate, existing as of the Closing Date. 
  
 “Other Costs” shall have the meaning ascribed to such term in Section 4.5. 
  
 “Partition Date” shall mean the date on which the Lease Rights Site I is partitioned as a separate parcel and the Lessor acquires the sole legal and beneficial ownership thereto from the Lessee. 

 

 4 

 “Permitted Uses” shall mean the Business or any other semiconductor, information technology or
other technology related business. 
  
 “Proceeding”
shall mean any action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, or investigative) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Entity.

  
 “Rent” shall have the meaning ascribed to such term
in Section 4.1. 
  
 “Rules and Regulations” shall have
the meaning ascribed to such term in Section 2.2. 
  
 “Site” shall mean certain lots which are occupied by Building “R”, Building “C1”, Building “C2”, as more specifically identified in Exhibit B, all of which are subject to the lease under this
Agreement. 
  
 “Subsidiary” shall have the meaning
ascribed to such term in the BTA. 
  
 “Successor” shall
have the meaning ascribed to such term in Section 11.2. 
  
 “Turnover Condition” shall have meaning set forth in Section 17.1(d) of this Lease. 
  
 “VAT” shall mean the value added tax required to be paid to the relevant Governmental Entity in respect of the lease or grant of easement rights
of the Land to Lessee. 
  
 “Warrant Issuer” shall have
the meaning ascribed to such term in the BTA. 
  

	1.2.	Rules of Interpretation. 

  

	 	(a)	When a reference is made in this Agreement to a section or article, such reference shall be to a section or article of this Agreement unless otherwise clearly indicated to the
contrary. 

  

	 	(b)	Whenever the words “include”, “includes” or “including” are used in this Agreement they shall be deemed to be followed by the words “without
limitation.” 

  

	 	(c)	The words “hereof”, “hereto”, “herein” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to
this Agreement as a whole and not to any particular provision of this Agreement, and article, section, paragraph and exhibit references are to the articles, sections, paragraphs and exhibits of this Agreement unless otherwise specified.

  

	 	(d)	The meaning assigned to each term defined herein shall be equally applicable to both the singular and the plural forms of such term, and words denoting any gender shall include all
genders. Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning. 

  

 5 

	 	(e)	A reference to any party to this Agreement or any other agreement or document shall include such party’s successors and permitted assigns. 

  

	 	(f)	A reference to any legislation or to any provision of any legislation shall include any amendment to, and any modification or re-enactment thereof, any legislative provision
substituted therefor and all regulations and statutory instruments issued thereunder or pursuant thereto. 

  

	 	(g)	The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement
shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of this Agreement. 

  

	 	(h)	Headings are for convenience only and do not affect the interpretation of the provisions of this Agreement. 

  

	 	(i)	Any Exhibits attached hereto are incorporated herein by reference and shall be considered as part of this Agreement. 

  
 Article 2. Grant of Lease and Easement 
  

	2.1.	Subject to Article 3, in consideration of the Rent hereby agreed to be paid to Lessor by Lessee and the agreements and covenants herein made by Lessee and subject to other terms and
conditions herein, Lessor hereby (a) leases to Lessee the Lease Rights Site and the one-half of the Easement Site (until the date of registration of the Easement Right on the Easement Site) and (b) grants Lessee the Easement Right to use the
Easement Site from the date of the registration of the Easement Right; provided that the Easement Right and the Lease Right on the one-half of the Easement Site granted to Lessee shall be exercisable by Lessee in a manner and to the extent that it
is in common with equivalent rights exercisable by Lessor, as owner. 

  

	2.2.	In consideration of the lease rights and easement rights hereby granted to Lessee by Lessor and the agreements and covenants herein made by Lessor and subject to other terms and
conditions herein, for the Lease Term Lessee shall grant to Lessor the Hynix Easement Right over the Access Areas for free; provided that the Hynix Easement Right granted to Lessor shall be exercised by Lessor in a manner and to the extent that
allows Lessee to exercise equal right to use the Access Areas based upon Lessee’s Lease Rights over the Access Areas. 

  

	2.3.	In consideration of the Rent hereby agreed to be paid to Lessor by Lessee and the agreements and covenants herein made by Lessee and subject to other terms and conditions herein,
Lessor hereby grants to Lessee a right (i) to access to the Cheong-Ju Complex for the purpose of using the Land in accordance with this Agreement, and to pass and repass to and from the Land or any part thereof over and along certain roads,
accessways, paths, highways and other thoroughfares within the Cheong-Ju Complex, provided that Lessee shall fully comply in all material respects with all Applicable Laws and the rules and regulations as currently adopted and enforced in the
ordinary operation 

  

 6 

	    	of the Cheong-Ju Complex and such additional rules and regulations adopted by Lessor and enforced uniformly as to all occupants of the Cheong-Ju Complex which do not materially
change the economic structure or effect of the Business (together “Rules and Regulations”) and (ii) to use, operate, maintain, repair and replace all of Lessee’s utility, pipeline, conduit and wiring systems on the Cheong Ju Complex
or any part thereof that serve the Site. In case where it is necessary, (i) Lessee may install utility, pipeline, conduit or wiring systems for the purpose of using the Buildings on Easement Site and Access Areas with Lessor’s prior written
consent which may not be unreasonably withheld and (ii) Lessor may install such facilities for the purpose of using Hynix Buildings on Access Areas with Lessee’s prior written consent which may not be unreasonably withheld.

  

	2.4	In consideration of the Lease Right and the Easement Right hereby granted to Lessee by Lessor and the agreements and covenants herein made by Lessor and subject to other terms and
conditions herein, Lessee hereby grants to Lessor a right (i) to access to the Cheong-Ju Complex for the purpose of using the Hynix Land as the owner thereof, and to pass and repass to and from the Land or other part of the Cheong Ju Complex on
which Lessee has a lease right or any part thereof over and along certain roads, accessways, paths, highways and other thoroughfares within the Cheong-Ju Complex, provided that Lessor shall fully comply in all material respects with all Applicable
Laws and reasonable rules and regulations adopted by Lessee and enforced uniformly as to all occupants of the Cheong-Ju Complex which do not materially change the economic structure of, or have an effect on, Lessor’s business and (ii) to use,
operate, maintain, repair and replace all of Lessor’s utility, pipeline, conduit and wiring systems on the Cheong Ju Complex or any part thereof that serve the Hynix Land. 

  

	2.5	Subject to Article 7, Lessor hereby grants to Lessee a right to register the lease under this Agreement (“Lease Right”, “deunggi imchakwon”) over the
Lease Rights Site and the one-half of the Easement Site and the Easement Right (“jiyokkown”) over the Easement Site with the relevant real property registry offices. The Lease Right and the Easement Right shall be effective during
the Lease Term, as long as the Buildings remain on the Lease Rights Site and the Lease Rights Site is used for the Permitted Uses in accordance with the terms of this Agreement. 

  

	2.6	Subject to Article 7, Lessee hereby grants to Lessor a right to register the Hynix Easement Right over the Access Areas with the relevant real property registry offices.

  

	2.7	Lessee acknowledges and agrees that Lessee has the right to occupy and use the Land only for the Permitted Uses, and upon the terms and conditions set forth in this Agreement.

  
 Article 3. Term 
  

	3.1.	This Agreement shall be effective from the Closing Date. 

  

	3.2.	Subject to Section 3.4, the lease term for the Lease Right (“Lease Term”) shall be indefinite (i) unless otherwise agreed between the Parties, and (ii) as long as the
Buildings remain on the Lease Rights Site and are owned by Lessee and Lessee uses the Lease Rights Site for the purpose of the Permitted Uses. 

  

 7 

	3.3	The Lease Term for the Lease Right on the one-half of the Easement Site shall continue until the Easement Right is registered on the Easement Site. 

  

	3.4	Term for the Easement Right on the Easement Site shall continue from the Partition Date to the expiration date of the Lease Term. 

  

	3.5	Hynix Easement Right on Access Areas shall be effective from the Partition Date to the expiration date of the Lease Term. 

  
 Article 4. Rent 
  

	4.1.	The monthly rent for the Land, exclusive of VAT, (the “Rent”) shall be [*****] per year for ten (10) years, which is [*****]
payable monthly in accordance with Article 4. Commencing on the tenth (10th) anniversary of the Closing Date, or the
first day of the immediately succeeding calendar month if the Closing Date is not the first day of a calendar month, and every second (2nd) anniversary of such date (each, a “Calculation Date”), Rent shall be recalculated for the next succeeding two years to increase or decrease by the same percentage as the change in the consumer price index
published by the Korean National Statistical Office of the Ministry of Finance and Economy (each, an “Index”) or any of its equivalent if an Index is not available, between the Index published most recently prior to the Calculation Date
compared to the Index published most recently prior to two years before such Calculation Date. In any event prior to the commencement date on which such recalculated Rent shall be applicable, the Parties, upon the request of either Party, agree to
submit a joint application to modify the amount of the Rent registered as of such time into such recalculated amount of the Rent. 

  

	4.2.	Lessor shall provide an invoice (the “Invoice”) to Lessee by the 10th day of each calendar month which shall include the amount of Rent, Other Costs and the corresponding VAT amount payable by Lessee for such month. 

  

	4.3.	Lessee shall pay in aggregate the Rent, Other Costs and the corresponding VAT amount stated on each Invoice to the Lessor’s designated account, or as otherwise designated by
Lessor, by means of wire transfer in immediately available funds by 25th day of each calendar month (the “Due
Date”). 

  

	4.4.	For any month of the Lease Term which is less than a full calendar month, the amount of Rent (and the corresponding VAT amount) payable by Lessee shall be equal to a pro rata
portion of the Rent, based on a ratio of the number of days during such month that the Lease Term is in effect to the total number of days in such month. 

  

	4.5.	If (a) the Rent is not paid on or before the Due Date or (b) any other amounts payable herein including payments due by either Party with respect to Damages (collectively, the
“Other Costs”) are not paid when due, after the passage of any applicable grace and/or cure period, Lessee or Lessor, as applicable, shall be liable for and pay interest on the outstanding amounts of the Rent and/or Other Costs at a rate
of eight percent (8%) per annum calculated from and including the sixth day after the Due Date until the date Rent and/or Other Costs are received in full by the Party to whom they are due. 

  
 /*****/ = Portions of this exhibit are subject to a request for confidential treatment
and have been redacted and filed separately with the Securities and Exchange Commission. 
  

 8 

	4.6.	Lessee shall be responsible for payment of any VAT levied on the Rent under this Agreement. 

  

	4.7	Notwithstanding anything herein to the contrary, in the event of a bankruptcy filing with respect to Lessee, Lessee shall deposit with Lessee an amount equal to the fees paid by
Lessee during the immediately preceding full calendar month under the terms of this Agreement, against which will be credited fees payable by Lessee over the thirty day period following such deposit. Lessee shall renew such deposit each thirty days
in each case by reference to the fees paid by Lessee during the full calendar month immediately preceding any such renewal until such bankruptcy protection filing has been accepted by the bankruptcy court. For the avoidance of doubt, Lessee shall
not be relieved of responsibility for, and shall pay when due, any fees for services hereunder during any such thirty day period to the extent in excess of the then actual deposit. 

  
 Article 5. Representations, Warranties and Covenants 
  

	5.1.	Lessor hereby covenants, represents and warrants to Lessee that all of the representations and warranties contained in this Section 5.1 are true and correct in all material respects
as of the Closing Date, and the Partition Date, as the case may be. 

  

	 	(a)	Organization. Lessor is a corporation duly organized and validly existing under the laws of Korea and has full power and authority to own and lease the Land.

  

	 	(b)	Authorization. Lessor has full corporate power and authority to execute and deliver this Agreement. The execution, delivery and performance by Lessor of this Agreement have
been duly authorized by all corporate actions on the part of Lessor that are necessary to authorize the execution, delivery and performance by Lessor of this Agreement. 

  

	 	(c)	Binding Agreement. This Agreement has been duly executed and delivered by Lessor and, assuming due and valid authorization, execution and delivery hereof by Lessee, is a
valid and binding obligation of Lessor, enforceable against Lessor in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general
application affecting enforcement of creditors’ rights generally and (ii) the availability of the remedy of injunctive relief may be subject to the discretion of the court before which any proceeding therefor may be brought or the general
principle of good faith and fairness provided for in the Korean Civil Code. 

  

	 	(d)	Title and Consents. Except as disclosed in Schedule 5.1(d), Lessor is the only legal and beneficial owner of the Land and has requisite power to grant the Lease Rights or the
Easement Right hereunder to Lessee and has the requisite power to grant the registration of the Lease Right and the Easement Right on the relevant portions of the Land to Lessee. 

  

 9 

	 	(e)	Use of Land. Except as disclosed in Schedule 5.1(e), Lessor has obtained all Consent required in connection with the ownership or use of the Land and the granting to Lessee
of the rights under this Agreement, and shall obtain such additional Consents necessary or appropriate for the grant of the Lease Rights or the Easement Right, as applicable, and the registration thereof in accordance with Section 7 (“Lessor
Lease Rights Consents” or “Lessor Easement Rights Consent”, as the case may be). Lessor has provided Lessee with copies of all such Consents and shall provide Lessee with the Lessor Lease Rights Consents related to the registration of
Lease Rights on or before the Closing Date and the Lessor Easement Rights Consents related to the registration of the Easement Right on or before the Partition Date, including those listed on Exhibit C. The present condition and use of the Land by
Lessor complies with all Applicable Laws in all material respects. 

  

	 	(f)	Veolia Lease Right. Lessor shall de-register the registered lease rights in favor of Veolia Water Korea Co., Ltd. (formerly known as Vivendi Water Industrial Development Co.,
Ltd.) (“Veolia”) on the land described in Schedule 5.1(d) (“Veolia Leased Land”) and consent to the registration of Lease Right I for the benefit of Lessee on the Veolia Leased Land as soon as possible after the Closing but in no
event later than 4 weeks thereafter. 

  

	 	(g)	Brokerage. Lessor and its Subsidiaries (as defined in the BTA) have not made any agreement or taken any other action which might cause any Person to become entitled to a
broker’s or finder’s fee or commission as a result of this Agreement. 

  

	 	(h)	NO OTHER REPRESENTATIONS. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT OR THE BTA, NEITHER LESSOR NOR ANY OTHER PERSON OR ENTITY ACTING ON BEHALF
OF LESSOR, MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED. TO THE EXTENT ANY REPRESENTATIONS OR WARRANTIES HEREIN ARE INCONSISTENT WITH ANY REPRESENTATIONS OR WARRANTIES IN THE BTA, THE APPLICABLE REPRESENTATIONS OR WARRANTIES IN THE BTA
SHALL CONTROL. 

  

	5.2.	Lessee hereby covenants, represents and warrants to Lessor that all of the representations and warranties contained in this Section 5.2 are true and correct in all material respects
as of the Closing Date, and the Partition Date, as the case may be. 

  

	 	(a)	Organization. Lessee is a corporation duly organized and validly existing under the laws of Korea and has full power and authority to carry on its business as heretofore
conducted. 

  

 10 

	 	(b)	Authorization. Lessee has full corporate power and authority to execute and deliver this Agreement. The execution, delivery and performance by Lessee of this Agreement have
been duly authorized by all corporate actions on the part of Lessee that are necessary to authorize the execution, delivery and performance by Lessee of this Agreement. 

  

	 	(c)	Binding Agreement. This Agreement has been duly executed and delivered by Lessee and, assuming due and valid authorization, execution and delivery hereof by Lessor, is a
valid and binding obligation of Lessee, enforceable against Lessee in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general
application affecting enforcement of creditors’ rights generally and (ii) the availability of the remedy of injunctive relief may be subject to the discretion of the court before which any proceeding therefor may be brought or the general
principle of good faith and fairness provided for in the Korean Civil Code. 

  

	 	(d)	Title and Consents. As of the Partition Date, Lessee has requisite power to grant the easement rights hereunder to Lessor and has the requisite power to grant the
registration of the Hynix Easement Right on the relevant portions of the Land to Lessor. 

  

	 	(e)	Use of Land. Lessee has obtained all Consents required in connection with the use of the Land and the granting to Lessor of the rights under this Agreement, and shall obtain
such additional Consents necessary or appropriate for the grant of the Hynix Easement Right and the registration thereof in accordance with Section 7 (“Lessee Easement Rights Consents”). As of Partition Date, Lessee has provided Lessor
with copies of all such Consents and shall provide Lessor with the Lessee Easement Rights Consents on or before the Partition Date, including those listed on Exhibit C. The condition and use of the Access Areas as of the Partition Date by Lessee
complies with all Applicable Laws in all material respects. 

  

	 	(f)	Construction of Warehouses. Lessee shall construct a Gas Warehouse Building on the Lease Right Site II within two (2) years from the Closing Date and a Waste Water Facility Building
on the Lease Rights Site II within one(1) year from the Closing Date. 

  

	 	(g)	Brokerage. Lessee has not made any agreement or taken any other action which might cause any Person to become entitled to a broker’s or finder’s fee or commission as a
result of this Agreement. 

  

	 	(h)	NO OTHER REPRESENTATIONS. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT OR THE BTA, NEITHER LESSEE NOR ANY OTHER PERSON OR ENTITY ACTING ON BEHALF OF
LESSEE, MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED. TO THE EXTENT ANY REPRESENTATIONS OR WARRANTIES HEREIN ARE 

  

 11 

	 	    	INCONSISTENT WITH ANY REPRESENTATIONS OR WARRANTIES IN THE BTA, THE APPLICABLE REPRESENTATIONS OR WARRANTIES IN THE BTA SHALL CONTROL. 

  

	5.3.	Each Party covenants and agrees to endeavor to cooperate with the other Party so as to minimize any interference with the other Party’s operation of its business.

  

	5.4.	With respect to Lessee’s use of the Land, from and after the Closing Date, Lessee shall comply in all material respects with all Applicable Laws applicable to the ordinary
operation of Lessee’s Business, including the environmental laws, and with the terms of all Government Authorizations relating to Lessee’s operation of its Business at the Land or in the Buildings arising after the Closing Date.

  

	5.5.	Lessee covenants and agrees to reimburse Lessor, in full and promptly upon demand, if Lessor sustains any material Damages or is reasonably required to expend any money as a result
of a default by Lessee hereunder; provided, however, Lessee shall not reimburse Lessor for any damages resulting from (a) reasonable wear and tear to the Land, (b) Lessor’s maintenance of the Land as provided for herein, or (c) to the extent
such Damages arises from Lessor’s gross negligence or intentional misconduct. 

  

	5.6.	Based on the Lease Right over the Site, Lessee shall grant to Veolia a registered sublease (“deunggi cheonchawkwon”) on certain portions of the Site, as more
specifically depicted in Exhibit D attached hereto, under the terms and conditions substantially the same as those of the Land Use Rights Agreement dated March 27, 2001 entered into by and between Lessor and Veolia. 

  

	5.7.	Except as disclosed in Schedule 5.1(d), Lessor will deliver actual possession of the Site free and clear of occupancy. 

  

	5.8.	By the Closing Date, Lessor shall have obtained all necessary and relevant Lessor Lease Rights Consents related to the registration of the Lease Rights. By the Partition Date,
Lessee shall have obtained all necessary and relevant Lessee Easement Rights Consents. Lessor shall not permit or suffer future Liens on the Lease Rights Site I. 

  

	5.9.	Lessor covenants and agrees to reimburse Lessee, in full and promptly upon demand, if Lessee sustains any material Damages or is reasonably required to expend any money as a result
of a default by Lessor hereunder; provided, however, Lessor shall not reimburse Lessee for any damages resulting from (a) reasonable wear and tear to the Land, or (b) Lessee’s maintenance of the Land as provided for herein, or (c) to the extent
such Damage arises from Lessee’s gross negligence or intentional misconduct. 

  
 Article 6. Maintenance and Other Expenses 
  
 All costs, expenses and obligations relating to the Site which arise or are attributable to Lessee’s occupancy or use of the Site during the Lease Term, shall be paid by Lessee. Lessee hereby assumes all other responsibilities normally
identified with the ownership of the Site, such as responsibility for the condition of the premises, such as operation, repair, replacement, maintenance and management of the Site, including repairs to the paved areas and driveways on 
  

 12 

 the Site. During the Lease Term, if Lessee fails to maintain the Site in good repair and condition for Lessor to obtain
the reasonable benefits of the Site, Lessor may so notify Lessee and perform such repair and shall be reimbursed upon demand by Lessee for such costs based on invoices for work actually performed. Without limiting the foregoing, except as otherwise
provided in this Agreement, or the other contracts executed by the Parties in connection with the BTA, the Parties agree that Lessor shall not be required or obligated to furnish any services or facilities to the Lease Rights Site. All costs,
expenses and obligations relating to the Easement Site and taxes that Lessor should pay, which arise or are attributable to the period of the Lease Term shall be paid by Lessor. Lessor hereby assumes all other responsibilities normally identified
with the ownership of the Easement Site, such as a responsibility for the condition of the Easement Site, such as operation, repair, replacement, maintenance and management of the Easement Site, including repairs to the paved areas and driveways on
the Easement Site. If Lessor fails to maintain the Easement Site in good repair and condition for Lessee to obtain the reasonable benefit of the Easement Right, Lessee may so notify Lessor and perform such repair and shall be reimbursed upon demand
by Lessor for such costs based on invoices for work actually performed, with a right of setoff against next Rent due to the extent not reimbursed. 
  
 Article 7. Registration of the Lease Right and Easement Right. 
  

	7.1.	On the Closing Date, Lessor shall consent to the registration of (a) the Lease Right over the Lease Rights Site for the benefit of Lessee, in accordance with Section 2.3 and (b) the
lease rights over the one-half of the Easement Site for the benefit of Lessee, subject to Lessor’s rights to use the Easement Site as the owner thereof, and shall provide to Lessee all the necessary and appropriate documents normally required
of a lessor for the registration of such Lease Right on the Closing Date, including Lessor Lease Rights Consents. Lessee shall be entitled to register, on or after the Closing Date, the rights granted under this Section 7.1 with the pertinent real
property registry offices. Such registration shall have, (i) with respect to the Lease Rights Site I and the Easement Site I, first priority during the Lease Term over any Lien on the Lease Rights Site I and the Easement Site I, subject to the
subsequent de-registration of such lease rights over the one-half of the Easement Site on the Partition Date and (ii) with respect to the Lease Rights Site II, subordinate to the Liens held by Lessor’s creditors. The registration shall include
such material matters provided in this Agreement as Lessor and Lessee may agree to register and as permitted to be registered in the real property registry under the Applicable Laws, provided that the terms of such Lease Right shall be the same as
the terms and conditions of this Agreement. The expenses and costs of such registration of the Lease Right shall be borne wholly by Lessee. 

  

	7.2	On the Partition Date, Lessor shall consent to the registration of the Easement Right over the Easement Site for the benefit of Lessee, in accordance with Section 2.3 and shall
provide to Lessee all necessary and appropriate documents normally required of a lessor for the registration of such Easement Right on the Partition Date. Lessee shall be entitled to register, on or after the Partition Date, the Easement Right over
the Easement Site granted under this Section 7.2 with the pertinent real property registry offices. Such registration shall have, (a) with respect to the Easement Site I, first priority during the Lease Term over any Lien on the Easement Site I and
(b) with respect to Easement Site II, priority subordinated to the Liens held by Lessor’s creditors. The registration shall 

  

 13 

	    	include such material matters provided in this Agreement as Lessor and Lessee may agree to register and as permitted to be registered in the real property registry under the
Applicable Laws, including the matter of the exercise by Lessee of the Easement Right in a manner and to the extent that allows Lessor to exercise a equal rights to use the Easement Site based on its ownership rights to the Easement Site set forth
in Section 2.1, provided that the terms of such Easement Right shall be the same as the terms and conditions of this Agreement. The expenses and cost of deregistration and re-registration of rights other than Lease Right over Lease Rights Site and
Easement Right over Easement Site shall be borne by the Party incurring such costs and expenses. The expenses and costs of such registration of such Easement Right shall be borne solely by Lessee. 

  

	7.3	On the Partition Date, Lessee shall consent to the registration of the Hynix Easement Right over the Access Areas in accordance with Section 2.1 for the benefit of Lessor and shall
provide to Lessor all necessary and appropriate documents normally required of a lessor for the registration of such easement rights on the Partition Date. Lessor shall be entitled to register, on or after the Partition Date, such Easement Right
over the Access Areas granted under this Section 7.3 with the pertinent real property registry offices. Such registration shall have, with respect to the Access Areas, first priority during the Lease Term over any Lien on the Access Areas. The
registration shall include such material matters provided in this Agreement as Lessor and Lessee may agree to register and as permitted to be registered in the real property registry under the Applicable Laws, including the matter of the exercise by
Lessee of the Easement Right in a manner and to the extent that allows Lessee to exercise a equal rights to use the Access Areas based on its Lease Rights over the Access Areas set forth in Section 2.2, provided that the terms of such easement
rights shall be the same as the terms and conditions of this Agreement. The expenses and costs of such registration of Hynix Easement Right shall be borne solely by Lessor. 

  
 Article 8. [Intentionally Deleted] 
  
 Article 9. Use and Maintenance 
  

	9.1.	Subject to Section 2.7, Lessee shall not occupy or use the Lease Rights Site and the Easement Site for any purpose whatsoever, other than in connection with the operation of the
Business, including all Permitted Uses and in compliance with all Applicable Laws and Rules and Regulations. 

  

	9.2.	Lessee shall, at its sole cost and expense, maintain, or cause to be maintained, during the Lease Term, the Site in equivalent condition to the condition as of the Closing Date,
wear and tear, insured casualty and condemnation excepted. 

  

 14 

 Article 10. Termination 
  

	10.1.	Termination. This Agreement may be terminated at any time during the Lease Term of this Agreement upon the occurrence of any of the following events:

  

	 	(a)	by a Party serving a written notice of termination to the other Party in the event of a material breach or default by such other Party of its obligations hereunder, which default
shall not have been cured within sixty (60) days after written notice is provided by the non-breaching Party to the breaching Party; or 

  

	 	(b)	by Lessee with ninety (90) days prior written notice to Lessor for any reason whatsoever. 

  

	10.2.	Upon termination of this Agreement, each Party shall discontinue the use of all Confidential Information provided by the other Party in connection with this Agreement, and shall
promptly return to the other Party any and all Confidential Information, including documents originally conveyed to it by the other Party and any copies thereof made thereafter. 

  

	10.3.	Termination of this Agreement shall be without prejudice to the accrued rights and liabilities of the Parties prior to the termination of this Agreement. 

 

	10.4.	The respective rights and obligations of the Parties under any Sections which by their nature are intended to extend beyond termination, shall survive the termination or expiry of
this Agreement. 

  

	10.5.	In the event of the termination of this Agreement pursuant to Section 10.1 hereof, a written notice thereof shall forthwith be given to the other Party specifying the provision
hereof pursuant to which such termination is made, and Lessee or Lessor (as the case may be) shall only be liable thereafter for (i) Damages suffered as a result of its fraud or willful breach of this Agreement that occurred prior to the termination
of this Agreement, or (ii) the obligations and liabilities of the Parties pursuant to this Agreement that accrued prior to the termination of this Agreement. 

  
 Article 11. Sublease and Assignment 
  

	11.1.	This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns; provided, however, that no Party hereto
will assign its rights or delegate its obligations under this Agreement without the express prior written consent of the other Party hereto, except that (i) Lessee may assign its rights hereunder (other than the lease right over the one-half of the
Easement Site allowed from the Closing Date until the Partition Date) as collateral security to any bona fide financial institution engaged in financing in the ordinary course providing financing to the Warrant Issuer or its Subsidiaries and any of
the foregoing financial institutions may assign such rights in connection with the sale of Lessee’s business in the form then being conducted by Lessee substantially as an entirety; (ii) Lessor and Lessee each may, upon written notice to the
other Party (but without the obligation to obtain the consent of such other Party), assign this Agreement or any of its rights and obligations under this Agreement to 

  

 15 

	    	any person, entity or organization that succeeds (by purchase, merger, operation of law or otherwise) to all or substantially all of the capital stock, assets or business of such
party, all or substantially all of its assets and liabilities or to all or substantially all of the assets and liabilities of the portion of the Party’s business to which the subject of this Agreement relates or of a division of Lessee, if such
person or entity agrees in writing to assume and be bound by all of the relevant obligations of such Party under this Agreement; and (iii) Lessee may, upon written notice to Lessor (but without the obligation to obtain the consent of Lessor), assign
this Agreement or any of its rights and obligations under this Agreement to one or more direct or indirect Subsidiaries of the Warrant Issuer if such Subsidiaries agree in writing to assume and be bound by all of the relevant obligations of Lessee
under this Agreement. 

  

	11.2.	Intentionally Deleted. 

  

	11.3.	Notwithstanding anything to the contrary, Lessee shall not sublease the Lease Rights Site, in whole or in part, to a third party, except Veolia in accordance with Section 5.6 and
the Hynix Easement Right. 

  
 Article 12. Quiet
Enjoyment; Indemnification. 
  

	12.1.	Without prejudice to Lessor’s rights under this Agreement or under the Applicable Laws, so long as Lessee pays the Rent and materially observes all other terms, conditions and
covenants hereof, Lessor shall ensure that Lessee has the right to quietly enjoy the Land without hindrance, molestation or interruption during the Lease Term, subject to the terms and conditions of this Agreement. 

  

	12.2.	Lessor shall indemnify Lessee and its Indemnified Persons (the “Lessee Indemnified Parties”), and hold the Lessee Indemnified Parties harmless from and against, any and
all Damages arising out of, resulting from or relating to claims by third parties arising from the negligent acts of Lessor, except to the extent such Damage is caused by the negligence or willful misconduct of any such Lessee Indemnified Party.

  

	12.3.	Lessee shall indemnify Lessor and its Indemnified Persons (the “Lessor Indemnified Parties”) and hold the Lessor Indemnified Parties harmless from and against, any and all
Damages arising out of, resulting from or relating to claims by third parties arising from the negligent acts of Lessee, except to the extent such Damage is caused by the negligence or willful misconduct of any such Lessor Indemnified Party.

  

	12.4.	In no event shall a Party be liable for Excluded Damages. 

  
 Article 13. Surrender. 
  

	13.1.	Upon the expiration or termination of this Agreement, Lessor and Lessee shall consult in good faith to determine a reasonable grace period (which shall not be more than 6 months)
(the “Grace Period”) for Lessee to peaceably and quietly vacate and surrender the Land to Lessor. For the avoidance of doubt, Lessee shall be obligated to pay the Rent for the period until the date of surrender of the Land to Lessor.

  

 16 

	13.2.	During the Grace Period, Lessee shall, among other things, restore the Land to its condition and shape equivalent to that of the Closing Date, wear and tear, insured casualty and
condemnation excepted, and as otherwise reasonably acceptable to Lessor by removing at its own expense any additional fixtures, partitions and structural alterations made by Lessee not consented to by Lessor. In the event Lessee fails to vacate,
surrender and restore the Land to its condition equivalent to that of the Closing Date, including the presence of any buildings and improvements, reasonable wear and tear and insured casualty excepted, by the end of the Grace Period, Lessor may
move, remove or dispose of any fixtures, partitions, structural alterations or other property or belongings remaining on the Land, and all reasonable expenses incurred therefrom shall be borne by Lessee. 

  
 Article 14. Disputes and Governing Law. 
  

	14.1.	This Agreement shall be governed by and construed in accordance with the laws of Korea without reference to the choice of law principles thereof. 

  

	14.2.	The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction to prevent any breach of this Agreement and to enforce specifically the terms and provisions of this Agreement by bringing a relevant action in the
Seoul Central District Court in Seoul, Korea, in addition to any other remedy to which any Party may be entitled at law or in equity. In addition, the Parties agree that any disputes, claims or controversies between the Parties arising out of or
relating to this Agreement, whether in contract, tort, equity or otherwise and whether relating to the meaning, interpretation, effect, validity, performance or enforcement of this Agreement shall be submitted to the exclusive jurisdiction of the
Seoul Central District Court in Seoul, Korea. Each of the Parties irrevocably waives, to the fullest extent permitted by law, any objection which it may now, or hereafter, have with respect to the jurisdiction of, or the venue in, the Seoul Central
District Court. 

  
 Article 15. Change of
Applicable Laws of Korea 
  
 Lessor shall process, and Lessee shall pay for,
every zoning requirement or the requirements imposed by the Applicable Laws, which arise from change of conditions caused by Lessee subsequent to the Closing Date from the operation of the Business, as they come into effect during the Lease Term.

  

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 Article 16. Alterations 
  
 Each of the Buildings is now or hereafter shall be owned by Lessee, Lessee has the unfettered right to alter, replace, construct and/or
reconstruct the Buildings, and Lessor acknowledges such alteration, replacement, construction or reconstruction shall not be deemed to be a termination of the Business or this Agreement. Lessor shall, upon request by Lessee, either (a) give evidence
of this prior consent to such demolition and construction during the Lease Term as long as the applicable Building is to be used for a Permitted Use, and/or (b) issue the requisite consent letter for submission to competent authorities. 

 
 Article 17. Right of First Refusal 
  

	17.1.	Lessor is the current occupant of portions of the Hynix Land (“Expansion Area”), Lessee shall have both a Right of First Refusal on the Expansion Area as set forth below:

  

	 	(a)	Right of First Refusal. If Lessor shall receive an offer to lease any portion of the Expansion Area, from time to time, which offer Lessor shall desire to accept, Lessor
shall transmit a memorandum of said offer to Lessee. The memorandum shall set forth in detail the terms of the offer, including a description of the area, the rent (including any abatement and escalations), and any other material terms of the offer,
to the extent available. Within fifteen (15) days of receiving Lessor’s memorandum, Lessee shall, by written notice to Lessor exercise the right (each, a “Right of First Refusal”), (i) to accept such Expansion Area upon the terms and
conditions stated in the offer or (ii) to accept such Expansion Area on the terms and conditions set forth in Section 17.1(c) and 17.1(d). Lessee’s failure to make the election shall be deemed a rejection of the Expansion Area. Upon
Lessee’s acceptance of the Expansion Area, the parties shall execute an amendment incorporating the Expansion Area into the Site subject to all of the terms, covenants, and conditions of the Lease, except as modified by the terms of the offer
(if Lessee has elected option (i) above). Notwithstanding anything to the contrary in the offer, the terms of the Lease for the Expansion Area shall be as provided in Section 17.1(c) immediately below. Notwithstanding that Lessee should fail or
refuse to exercise its Right of First Refusal in the manner herein provided, if the Expansion Area, or any part thereof, is not leased to the prospective tenant contemplated by Lessor’s memorandum within the time-period and on terms no more
favorable to such tenant than originally offered to Lessee, the Expansion Area shall thereafter continue to be subject to the terms and conditions imposed by this Section 17.1(a) upon third party offers to lease and the first refusal procedure
established by this Section 17.1(a) shall be reinstated. 

  

	 	(b)	Should Lessee elect to exercise its Right of First Refusal, the terms and conditions of this Lease shall apply to the Expansion Area except as modified by the terms of the offer if
Lessee has accepted in Section 17.1(a) option (i) above. Rent for the Expansion Area shall be at the then current square meter rental rate except as modified by the terms of the offer if Lessee has accepted in Section 17.1(a) option (i) above.

  

 18 

	 	(c)	Should Lessee exercise its Right of First Refusal, Lessor shall deliver such Expansion Area to Lessee, in Turnover Condition (defined below) whereupon said Expansion Area shall be
added to and become a part of the Site and shall be governed in all respects by the terms of this Lease except that (i) as to the Right of First Refusal, the terms of the offer upon which Lessee exercised such right shall govern to the extent
inconsistent with the terms of this Agreement and (ii) notwithstanding anything herein to the contrary, the term applicable to such space shall end at the same time, and under the same conditions, as applicable to the Lease Term. As used herein,
“Turnover Condition” shall mean broom clean, free of occupants, debris, and movable property. 

  
 Article 18. Additional Warehouse 
  

	18.1	In accordance with Applicable Laws and if any land in the Cheong Ju Complex is available for the construction of one additional warehouse (“First Additional Warehouse”),
Lessee may elect to construct a First Additional Warehouse by hiring its own contractors and performing such construction. In such event, Lessor shall provide or engage in the following: 

  

	 	(a)	the use or lease of the additional land necessary for the construction of the First Additional Warehouse, which would become part of the Lease Rights Site II; and

  

	 	(b)	the use of access to such additional land and to the completed First Additional Warehouse, which would become part of the Easement Site II. 

  

	 	(c)	to undertake the performance for Lessee to obtain second priority Lease Rights for the site of the First Additional Warehouse and second priority Easement Rights for access from a
public road along the main road to the site of the First Additional Warehouse consistent with Article 7 of this Agreement. 

  

	18.2	In accordance with Applicable Laws and if any land in the Cheong Ju Complex is available for the construction of one other additional warehouse (“Second Additional
Warehouse”, together with the First Additional Warehouse, the “Additional Warehouses”), upon Lessee’s request, the Parties shall discuss in good faith (i) to accommodate such request and (ii) the selection of the site for the
Second Additional Warehouse and other required acts. If both Parties agree, Lessor shall provide the undertakings as set forth in Sections 18.1(a), (b) and (c) above. 

  

	18.3	This Section shall be deemed as advance consent by Lessor to the site of the Additional Warehouses becoming part of the Lease Rights Site II and having the right of Easement Right
II for access from a public road along the main road to the site of the Additional Warehouses. 

  
 Article 19. Insurance. 
  

	19.1.	Lessor and Lessee shall each obtain from, keep in force during the Lease Term with, and pay all premiums due to, an insurer(s) holding a Best Rating of B+ or higher, Standard

  

 19 

	    	Commercial General Liability Insurance. The limits of liability of such insurances shall be in an amount not less than One Million Dollars ($1,000,000.00) per occurrence, Personal
Injury including death and One Million Dollars ($1,000,000.00) per occurrence, Property Damage Liability or One Million Dollars ($1,000,000.00) combined single limit for Personal Injury and property Damage Liability. 

  

	19.2.	Lessee shall pay to Lessor the incremental amount of insurance premiums which will be additionally charged to Lessor due to Lessor’s grant to Lessee of lease of the Lease
Rights Site I and easement right to the Easement Site in accordance with this Agreement. 

  
 Article 20. Signage. 
  
 Upon surrender or vacation of the Leased Premises, Lessee shall have removed all signs it has installed. Lessee shall obtain all applicable Governmental Authorizations for sign and exterior treatments at its sole cost and expense. Lessor
consents to the signage as depicted on Exhibit E. If Lessee desires to install signs, decorations, or advertising media, the Parties shall discuss in good faith the installation of such signage. 
  
 Article 21. Force Majeure. 
  

	21.1.	Neither Party shall be liable to the other Party for failure of or delay in the performance of any obligations under this Agreement due to causes reasonably beyond its control
including (i) war, insurrections, riots, explosions, inability to obtain raw materials due to then current market situation; (ii) natural disasters and acts of God, such as violent storms, earthquakes, floods, and destruction by lightning; (iii) the
intervention of any Governmental Entity or changes in relevant laws or regulations which restrict or prohibit either Party’s performance of its obligations under this Agreement or implementation of this Agreement; or (iv) strikes, lock-outs and
work-stoppages, which are beyond the reasonable control of the Party claiming the benefit (each, an “Event of Force Majeure”). Upon the occurrence of an Event of Force Majeure, the affected Party shall notify the other Party as soon as
possible of such occurrence, describing the nature of the Event of Force Majeure and the expected duration thereof. Notwithstanding the foregoing, Lessee shall be under continuing obligation to make the payments required hereunder for any Rent,
Other Costs and the corresponding VAT payable by Lessee, which was payable by Lessee prior to the occurrence of an Event of Force Majeure. 

  

	21.2.	If a Party is unable, by reason of an Event of Force Majeure, to perform any of its obligations under this Agreement, then such obligation shall be suspended to the extent and for
the period that the affected Party is unable to perform. If this Agreement requires an obligation to be performed by a specified date, such date shall be extended for the period during which the relevant obligation is suspended due to such an Event
of Force Majeure under this Agreement. 

  
 Article
22. Confidentiality. 
  

	22.1.	Confidentiality. Neither Party shall, except as expressly permitted by the terms of this Agreement, disclose to any third party the terms and conditions of this Agreement, the

  

 20 

	    	existence of this Agreement and any Confidential Information which either Party obtains from the other Party in connection with this Agreement and/or use such Confidential
Information for any purposes whatsoever other than those contemplated hereunder provided, however, that this Agreement (and its terms and conditions) may be disclosed and filed publicly in connection with a public offering of
securities by Lessee or its Affiliates. “Confidential Information” shall mean any and all information including technical data, trade secrets or know-how, disclosed by either Party to the other Party in connection with this Agreement,
which is marked as “Proprietary” or “Confidential” or is declared by the other Party, whether in writing or orally, to be confidential, or which by its nature would reasonably be considered confidential. 

 

	22.2.	The obligation of confidentiality in Section 22.1 shall not apply to any information that: (a) was known to the other Party without an obligation of confidentiality prior to its
receipt thereof from the disclosing Party; (b) is or becomes generally available to the public without breach of this Agreement, other than as a result of a disclosure by the recipient Party, its representatives, its Affiliates or the
representatives of its Affiliates in violation of this Agreement; (c) is rightfully received from a third party with the authority to disclose without obligation of confidentiality and without breach of this Agreement; or (d) is required by law or
regulation to be disclosed by a recipient Party or its representatives (including by oral question, interrogatory, subpoena, civil investigative demand or similar process), provided that written notice of any such disclosure shall be provided to the
disclosing Party in advance. If a Party determines that it is required to disclose any information pursuant to applicable law (including the requirements of any law, rule or regulation in connection with a public offering of securities by Lessor or
its Affiliates) or receives any demand under lawful process to disclose or provide information of the other Party that is subject to the confidentiality provisions hereof, such Party shall notify the other Party prior to disclosing and providing
such information and shall cooperate at the expense of the requesting Party in seeking any reasonable protective arrangements requested by such other Party. Subject to the foregoing, the Party that receives such request may thereafter disclose or
provide information to the extent required by such law or by lawful process. 

  
 Article 23. Miscellaneous. 
  

	23.1.	Exercise of Right. A Party may exercise a right, power or remedy at its discretion, and separately or concurrently with another right, power or remedy. A single or partial
exercise of a right, power or remedy by a Party does not prevent a further exercise of that or of any other right, power or remedy. A failure to exercise a right, power or remedy or a delay in exercising a right, power or remedy by a Party does not
prevent such Party from exercising the same right thereafter. 

  

	23.2.	Extension; Waiver. At any time during the Lease Term, each of Lessor and Lessee may (a) extend the time for the performance of any of the obligations or other acts of the
other or (b) waive any inaccuracies in the representations and warranties of the other contained in this Agreement or in any document delivered pursuant to this Agreement. Any agreement on the part of a Party to any such extension or waiver shall be
valid only if set 

  

 21 

	    	forth in an instrument in writing signed on behalf of such Party. The failure of any Party to assert any of its rights under this Agreement or otherwise shall not constitute a
waiver of those rights. Any rights under this Agreement may not be waived except in writing signed by the Party granting the waiver or varied except in writing signed by the Parties. 

  

	23.3.	Notices. Any notice, request, demand, waiver, consent, approval or other communication which is required or permitted to be given to any Party shall be in writing and shall
be deemed duly given only upon delivery to the Party personally (including by reputable overnight courier service), when telecopied (with confirmation of transmission having been received) during normal business hours or three days after being
mailed by registered or certified mail (return receipt requested), with postage and registration or certification fees thereon prepaid, addressed to the Party at its address set forth below (or at such other address for a party as shall be specified
by such Party by like notice): 

  
 If to Lessor, to: 
  
 Hynix
Semiconductor Inc. 
 Hynix Youngdong Building 
 891 Daechi-dong, Gangnam-gu 
 Seoul 135-738, Korea 
 Attention: O.C. Kwon 
 Telephone: 82-2-3459-3006 
 Facsimile: 82-2-3459-5955 
  
 If to Lessee, to: 
  
 MagnaChip Semiconductor, Ltd. 
 1 Hyangjeong-dong 
 Heungduk-gu 
 Cheongju City 
 Chung Cheong Bok-do 
 Korea 
 Telephone: 
  
 Attention: Dr. Youm Huh

 Facsimile: +82-43-270-2134 
  
 with a copy to: 
  
 Dechert LLP 
 30 Rockefeller Plaza 
 New York, New York 10112 
 Telephone: (212) 698-3500 
 Facsimile: (212) 698-3599 
 Attention: Geraldine A. Sinatra, Esq. 
 Sang H. Park, Esq. 
  

 22 

	23.4.	Fees and Expenses. All costs and expenses incurred in connection with this Agreement shall be paid by the Party incurring such expenses, except as specifically provided to
the contrary in this Agreement. 

  

	23.5.	Entire Lease; No Third Party Beneficiaries. This Agreement (a) constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings,
both written or oral, between the Parties with respect to the subject matter hereof and (b) is not intended to confer upon any person other than the Parties hereto any rights or remedies hereunder. 

  

	23.6.	Severability of Provisions. Any term or provision of this Agreement that is held by a court of competent jurisdiction or other authority to be unlawful, invalid, void or
unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any
other jurisdiction. If the final judgment of a court of competent jurisdiction or other authority declares that any term or provision hereof is unlawful, invalid, void or unenforceable, the Parties agree that the court making such determination
shall have the power to reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or to replace any unlawful, invalid, void or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the unlawful, invalid or unenforceable term or provision. 

  

	23.7.	Amendment and Modification. This Agreement (for the avoidance of doubt, including Exhibits attached hereto) may be amended, modified and supplemented in any and all respects,
but only by a written instrument signed by the Parties expressly stating that such instrument is intended to amend, modify or supplement this Agreement. 

  

	23.8.	Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement. 

  

	23.9.	Election of Remedies. Neither the exercise of nor the failure to exercise a right or to give notice of a claim under this Agreement shall constitute an election of remedies
or limit any Party in any manner in the enforcement of any other remedies that may be available to such Party, whether at law or in equity. 

  

	23.10.	Language. This Agreement is being originally executed in the English language only. In the event that the Parties agree to have a Korean version of this Agreement following
signing, this Agreement may be translated into Korean. The Parties acknowledge that the Korean version of this Agreement shall be for reference purposes only, and in the event of any inconsistency between the two texts, the English version shall
control. 

  

	23.11.	No Merger. It is the intention of the Lessor to lease the Land to the Lessee free of any merger of the fee estate and leasehold estate or any other interests that may be held
contemporaneously by Lessor, or any of them, and Lessee. No such merger will occur until such time as the Lessee executes a written instrument specifically effecting such merger and duly records the same. 

  

 23 

 IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed by its duly authorized
representatives as of the date first above written. 
  

			
	Hynix Semiconductor Inc.
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	MagnaChip Semiconductor, Ltd.
		
	By:	 	  

	Name:	 	 
	Title:

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