Document:

MagnaChip LLC California Equity Incentive Plan

 Exhibit 10.25 
  

  
 MAGNACHIP SEMICONDUCTOR LLC 
 CALIFORNIA EQUITY INCENTIVE PLAN

  

  
 MagnaChip Semiconductor LLC, a Delaware limited liability company, wishes to attract outstanding employees, consultants and non-employee directors to the
Company and its Subsidiaries, to induce employees, consultants and non-employee directors to remain with the Company and its Subsidiaries, to encourage them to increase their efforts to make the business of the Company and its Subsidiaries more
successful and to enhance equity holder value. In furtherance thereof, the MagnaChip Semiconductor LLC Equity Incentive Plan is designed to provide employees, consultants and non-employee directors a greater stake in the success of the Company and
its Subsidiaries and a closer identity with it, and to encourage ownership of the Company’s Common Units by such employees, consultants and non-employee directors. 
  

	1.	DEFINITIONS. 

  
 Whenever used herein and unless otherwise provided in the Holder’s Award Agreement, the following terms shall have the meanings set forth below:

  
 “Award” means an award of Restricted Units, Options
or SARs under the Plan. 
  
 “Award Agreement” means any
written agreement in a form approved by the Committee to be entered into by the Company and the Holder to evidence the Award of Options, Restricted Units or SARs. 
  
 “Board” means the Board of Directors of the Company as defined in the LLC Agreement. 
  
 “Cause” means, unless otherwise defined in the Holder’s
employment or consulting agreement, as applicable: (i) the Holder’s willful misconduct or gross negligence in connection with the performance of the Holder’s duties for the Company or its Subsidiaries; (ii) the Holder’s conviction of,
or a plea of nolo contendre to, a felony or a crime involving fraud or moral turpitude; (iii) the Holder’s engaging in any business that directly or indirectly competes with the Company or its Subsidiaries; or (iv) disclosure of trade secrets,
customer lists or confidential information of the Company or its Subsidiaries to a competitor or unauthorized person. 
  
 “Change of Control” means such time as: 
  
 (i) any “person” (as such term is used in Sections 3(a)(9) and 13(d)(3) of the Exchange Act), other than 
  
 (A) the Institutional Securityholders and/or their respective permitted
transferees, or 
  

 (B) any “group” (within the meaning of such Section 13(d)(3)) of which either of the
Institutional Securityholders constitutes a majority (on the basis of ownership interest), 
  
 acquires, directly or indirectly, by virtue of the consummation of any purchase, merger or other combination, securities of the Company representing more than 51% of the combined voting power of the Company’s
then outstanding voting securities with respect to matters submitted to a vote of the holders of Units generally; or 
  
 (ii) a sale or transfer by the Company or any of its Subsidiaries of substantially all of the consolidated assets of the Company and its Subsidiaries to a
Person that is not an affiliate of the Company prior to such sale or transfer. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Committee” means the committee designated by the Board to administer the Plan under Section 3. If no such committee has been established, then
the Board shall perform the duties of the Committee hereunder. 
  
 “Common Units” means common membership interests having the rights, including voting rights, described in the LLC Agreement. 
  
 “Company” means MagnaChip Semiconductor LLC, a Delaware limited liability company. 
  
 “Disability” means that the Company determines that due to physical or mental illness or incapacity, whether total
or partial, the Holder is substantially unable to perform his duties hereunder for a period of 180 consecutive days or shorter periods aggregating 180 days during any period of 365 consecutive days. The Holder shall permit a licensed physician
agreed to by the Company and the Holder (or, in the event that the Company and the Holder cannot agree, by a licensed physician agreed upon by a physician selected by the Company and a physician selected by the Holder) to examine the Holder from
time to time prior to the Holder’s being determined to be Disabled, as reasonably requested by the Company, to determine whether the Holder has suffered a Disability hereunder. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Exercise Price” means the exercise price per Common Unit of an
Option. 
  
 “Fair Market Value” shall mean the fair
market value of Common Units, as determined by the Committee in good faith in its sole and absolute discretion. 
  
 “Holder” means an employee, consultant or non-employee director of the Company to whom an Award is made, or the Successors of the Holder, as the
context so requires. 
  

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 “Institutional Securityholder” means each of Citigroup Venture Capital Equity Partners, L.P.,
CVC Executive Fund LLC, CVC/SSB Employee Fund, L.P., Francisco Partners, L.P. and Francisco Partners Fund A, L.P. 
  
 “LLC Agreement” means the Second Amended and Restated Limited Liability Company Operating Agreement of MagnaChip Semiconductor LLC dated as of
September 23, 2004, as amended from time to time. 
  
 “Non-Qualified Option” means an Option which is not intended to be an “incentive stock option” within the meaning of Section 422(b) of the Code and designated as a Non-Qualified Option. 
  
 “Option” means any option to purchase Common Units granted from
time to time under Section 6 of the Plan. 
  
 “Option Award
Agreement” means any written agreement in a form approved by the Committee to be entered into by the Company and the Holder to evidence the Award of Options under Section 6 of the Plan. 
  
 “Person” means any individual, partnership, corporation, company,
limited liability company, association, trust, joint venture, unincorporated organization, entity or division, or any government, governmental department or agency or political subdivision thereof. 
  
 “Plan” means this MagnaChip Semiconductor LLC Equity Incentive
Plan, as amended from time to time. 
  
 “Public
Offering” means an underwritten public offering of the Common Units of the Company (or any successor to the Company) pursuant to an effective registration statement under the Securities Act other than pursuant to a registration statement on
Form S-4 or Form S-8 or any similar or successor form, provided that the proceeds of such public offering amount to at least $30,000,000 of gross proceeds to the Company (or any successor to the Company). 
  
 “Restricted Units” means Common Units awarded by the Committee
under Section 8 of the Plan. 
  
 “Restricted Unit
Agreement” means any written agreement in a form approved by the Committee to be entered into by the Company and the Holder to evidence the Award of Restricted Units under Section 8 of the Plan. 
  
 “Restriction Period” means the period during which Restricted Units
awarded under Section 8 of the Plan is subject to forfeiture. 
  
 “SAR” means a unit appreciation right awarded by the Committee under Section 7 of the Plan. 
  
 “SAR Award Agreement” means any written agreement in a form approved by the Committee to be entered into by the Company and the Holder to
evidence the Award of SARs under Section 7 of the Plan. 
  

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 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Subsidiary” of any Person (with respect to such Subsidiary, the
“parent”) means any other Person whose (a) securities having ordinary voting power to elect a majority of its board of directors or managing or general partners (or other persons having similar functions) or (b) other ownership interests
(including partnership and membership interests) ordinarily constituting a majority interest in the capital, profits or cash flow of such Person, are at the time, directly or indirectly, owned or controlled by such parent, or by one or more other
Subsidiaries of such parent, or by such parent and one or more of its other Subsidiaries. 
  
 “Successor Holder” means: (i) the legal representative of the estate of a deceased Holder or (ii) the person who shall acquire the right to exercise an Award by bequest or inheritance or other transfer or by
reason of the death of the Holder or (iii) persons who shall acquire the right to exercise an Award on behalf of the Holder as the result of a determination by a court or other governmental agency of the incapacity of the Holder. 
  
 “Ten Percent Holder” means a person who owns (or is deemed to own
pursuant to Section 424(d) of the Code) securities possessing more than ten percent (10%) of the total combined voting power of all classes of securities of the Company, any parent or of any of its Subsidiaries. 
  
 “Termination of Service” means a Holder’s termination of
employment or other service, as applicable, with the Company and its Subsidiaries for any reason, including death, Disability, termination by the Company with or without Cause and resignation by the Holder. 
  
 “Units” means all ownership interests in the Company.

  

	2.	EFFECTIVE DATE AND TERMINATION OF PLAN. 

  
 The effective date of the Plan is March 21, 2005; provided that no Common Units shall be issued pursuant to an Award unless and until the Plan has been
approved by the holders of the Units, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board. The Plan shall terminate on, and no Awards shall be granted hereunder on or after the 10th year anniversary of the effective date of the Plan; provided, however, that the Board may at any time prior to that date
terminate the Plan. However, the termination of the Plan shall not affect any Awards granted prior to such termination. 
  

	3.	ADMINISTRATION OF PLAN. 

  
 (a) The Plan shall be administered by the Committee, which shall have full power and authority to interpret the Plan. The Committee shall have full
authority to determine to whom Awards will be granted, the type and amount of Awards to be granted, the terms and conditions of Awards granted under the Plan and the terms of Award Agreements to be entered into with Holders. 
  
 (b) The Award Agreement shall contain such terms, provisions and conditions
not inconsistent herewith as determined by the Committee. The Holder shall take whatever additional actions and execute whatever additional documents the Committee may in its 

  

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reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Holder pursuant
to the express provisions of the Plan and the Award Agreement. 
  

	4.	ELIGIBILITY. 

  
 (a) General. Any employee, consultant or non-employee director of the Company or a Subsidiary who is designated by the Committee as eligible to
participate in the Plan shall be eligible to receive an Award under the Plan. 
  
 (b) Ten Percent Holders. 
  
 (i) A Ten Percent Holder shall not be granted an Option or SAR (if such SAR could be settled in Units) unless the per unit exercise price of such Option or such SAR is at least (i) one hundred ten percent (110%) of
the Fair Market Value of a Common Unit on the date of grant or (ii) such lower percentage of the Fair Market Value of a Common Unit on the date of grant as is permitted by Section 260.140.42 of Title 10 of the California Code of Regulations at the
time of the grant of the Option or SAR. In addition, an Option or SAR (if such SAR could be settled in Units) granted to a Ten Percent Holder shall not be exercisable after the expiration of five (5) years from the date of grant. 
  
 (ii) A Ten Percent Holder shall not be granted a Restricted
Unit Award, unless the purchase price per Common Unit of the Restricted Unit Award is at least (i) one hundred percent (100%) of the Fair Market Value of a Common Unit on the date of grant or (ii) such lower percentage of the Fair Market Value of a
Common Unit on the date of grant as is permitted by Section 260.140.42 of Title 10 of the California Code of Regulations at the time of the grant of the award. 
  

(c) Consultants. A consultant shall not be eligible for the grant of an Award if, at the time of grant, either the offer or the sale of the
Company’s securities to such consultant is not exempt under Rule 701 of the Securities Act (“Rule 701”) because of the nature of the services that the consultant is providing to the Company, because the consultant is not a natural
person, or because of some other provision of Rule 701. 
  

	5.	UNITS SUBJECT TO THE PLAN. 

  
 (a) Subject to adjustments as provided in Section 12, as of the effective date of the Plan, the aggregate maximum number of Common Units available for
grant under the Plan and the MagnaChip Semiconductor LLC Equity Incentive Plan shall be 6,190,864. Any Common Units that have been reserved for distribution in payment for an Award but are later forfeited or for any other reason are not issued under
the Plan may again be made the subject of Awards under the Plan. 
  
 (b) Upon issuance of an Award under the Plan, the Holder and any Successor of the Holder agrees to be bound by the LLC Agreement to the same extent as would a “Member,” as that term is defined in the LLC Agreement, and to execute
a Joinder to the LLC Agreement in the form of Exhibit B thereto. Without limiting the generality of the foregoing, each Holder agrees to any transfer restrictions, drag-along rights or other obligations delineated 

  

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in the LLC Agreement. Additionally, any amendment to the LLC Agreement that effects a provision contained herein shall be deemed to be an amendment to the
Plan. 
  
 (c) The Holder and any Successor of the Holder agree to
be bound by the provisions in Annex I hereto regarding required transfers. 
  
 (d) The certificates (if any) for Common Units issued hereunder may include any legend which the Committee deems appropriate to reflect any restrictions on transfer hereunder, under the Securityholders’
Agreement, the LLC Agreement or under the Award Agreement, or as the Committee may otherwise deem appropriate. 
  
 (e) Plan Reserve Limitation. To the extent required by Section 260.140.45 of Title 10 of the California Code of Regulations, the total number of
Common Units issuable upon exercise of all outstanding Options and the total number of Common Units provided for under any Unit bonus or similar plan of the Company shall not exceed the applicable percentage as calculated in accordance with the
conditions and exclusions of Section 260.140.45 of Title 10 of the California Code of Regulations, based on the Common Units of the Company that are outstanding at the time the calculation is made. 
  

	6.	OPTIONS. 

  
 Options give an employee, consultant or non-employee director the right to purchase a specified number of Common Units from the Company for a specified
time period at a specified price. Options issued under the Plan are Non-Qualified Options. The grant of Options shall be subject to the following terms and conditions: 
  
 (a) Option Grants: Options shall be evidenced by an Option Award Agreement. Such agreement shall conform to the requirements
of the Plan, and may contain such other provisions as the Committee shall deem advisable. 
  
 (b) Option Price: Unless otherwise determined by the Committee and provided for in an Option Award Agreement or as provided for in Section 4(b), the Exercise Price of an Option shall be not less than the Fair Market
Value of a Common Unit on the date of grant. 
  
 (c) Term of
Options: The Option Award Agreements shall specify when an Option may be exercisable and the terms and conditions applicable thereto. The term of an Option shall in no event be greater than ten years. Unless earlier expired, forfeited or otherwise
terminated, each Option shall expire in its entirety upon the day after the last day of its term. The Option shall also expire, be forfeited and terminate at such times and in such circumstances as otherwise provided hereunder, in the LLC Agreement,
in the Securityholders’ Agreement or under the Option Award Agreement. 
  
 (d) Vesting: The total number of Common Units subject to an Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such
other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the 

  

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Committee may deem appropriate. The vesting provisions of individual Options may vary. Each Option, to the extent that the Holder has not had a Termination
of Service and the Option has not otherwise lapsed, expired, terminated or been forfeited, shall vest according to the schedule set forth in the Option Award Agreement. No Option shall become exercisable until such Option becomes vested. 

 
 (e) Minimum Vesting. Notwithstanding the foregoing Section 6(d), to the
extent that the following restrictions on vesting are required by Section 260.140.41(f) of Title 10 of the California Code of Regulations at the time of the grant of the Option, then: 
  
 (i) An Option granted to an employee who is not an officer, director or consultant shall provide for vesting
of the total number of Common Units subject to the Option at a rate of at least twenty percent (20%) per year over five (5) years from the date the Option was granted, subject to reasonable conditions such as continued employment; and 
  
 (ii) Options granted to officers, directors or consultants
may have such vesting provisions as the Committee. 
  
 (e) No
Rights as Securityholder: Except as required by law, the Holder shall not have any rights as a securityholder with respect to any Units covered by the Options granted under the Plan until such time as the Units issuable upon exercise of such Options
have been so issued. 
  
 (f) Restrictions on Transferability: An
Option shall not be pledged, assigned or transferred except by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of the Holder only by the Holder. The Successors of the Holder shall, in all cases, be
subject to the provisions of the Option Award Agreement between the Company and the Holder. Notwithstanding the generality of the foregoing, the Committee may (but need not) permit other transfers of Options; provided such transfers otherwise
conform to (i) the LLC Agreement, (ii) the provisions set forth in Annex I and, (iii) to the extent permitted by Section 260.140.41(d) of Title 10 of the California Code of Regulations. 
  
 (g) Effect of Termination of Service on Outstanding Options:

  
 (i) Termination of Service by Reason of Death
or Disability: If a Holder incurs a Termination of Service due to death or Disability, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Successor Holder), to the extent it was
exercisable at the time of termination or on such accelerated basis as the Committee may determine at or after grant, (x) for a period of 12 months or such longer or shorter term from the date of such Termination of Service as determined by the
Committee at or after the grant date (but in no event shorter than six (6) months after the date of Termination of Service) or (y) until the expiration of the stated term of the Option, if shorter.  
  
 (ii) Termination Not for Cause: If a Holder incurs a
Termination of Service by the Company or the Subsidiary not for Cause, any vested unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Successor Holder), to the extent it was vested and
exercisable at the time of termination or on such 

  

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accelerated basis as the Committee may determine at or after grant, (x) for a period of 60 days from the date of such Termination of Service or such longer
or shorter period as determined by the Committee at or after the grant date (but in no event shall the period be shorter than 30 days) or (y) until the expiration of the stated term of the Option, if shorter. 
  
 (iii) Termination for Cause: Unless otherwise provided by
the Committee at or after grant, if a Holder incurs a Termination of Service by the Company or the Subsidiary for Cause, all unexercised Options awarded to the Holder shall terminate on the date of such termination. 
  
 (iv) Voluntary Termination: If a Holder incurs a
Termination of Service by the Company or the Subsidiary not for Cause, any vested unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Successor Holder), to the extent it was vested and
exercisable at the time of termination or on such accelerated basis as the Committee may determine at or after grant, (x) for a period of 30 days from the date of such Termination of Service or such longer period as determined by the Committee at or
(y) after the grant date or until the expiration of the stated term of the Option, whichever period is shorter. 
  
 (h) Exercise of Option: Subject to vesting and other restrictions provided for hereunder or otherwise imposed in accordance herewith, an Option may be
exercised, and payment in full of the aggregate Exercise Price made, by a Holder (or, where appropriate, the Successor Holder) only by notice (in the form prescribed by the Committee) to the Company specifying the number of Common Units to be
purchased. Without limiting the scope of the Committee’s discretion hereunder, the Committee may impose such other restrictions on the exercise of Options (whether or not in the nature of the foregoing restrictions) as it may deem necessary or
appropriate; provided that the Option shall become exercisable at the minimum rates described for vesting in Section 6(e). 
  
 (i) Payment of Option Price: The aggregate Exercise Price shall be paid in full upon the exercise of the Option. Payment must be made by one of the
following methods: 
  
 (i) cash or a certified or
bank cashier’s check; 
  
 (ii) if approved
by the Committee in its sole discretion, Common Units previously owned and held for such period of time as necessary to avoid a charge for financial accounting purposes and having an aggregate Fair Market Value on the date of exercise equal to the
aggregate Exercise Price; 
  
 (iii) with consent
of the Committee, which may be granted or withheld in its sole discretion, by delivery of a properly executed notice of option exercise together with irrevocable written consent to the Committee to withhold that number of Common Units (rounded up to
the nearest whole unit) the Fair Market Value of which is equal to the sum of the Exercise Price and the federal, state or local income taxes legally required to be withheld with respect to the exercise of such Option and to deliver to the Holder
the net number of whole Common Units remaining after such withholding, plus cash equal to the Fair Market Value of any fractional Unit eliminated by rounding; or 
  

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 (iv) by any combination of such methods of payment or any other legal method acceptable
to the Committee in its discretion. 
  

	7.	APPRECIATION RIGHTS. 

  
 SARs give an employee, consultant or non-employee director the right to receive, upon exercise of the SAR, the increase in the Fair Market Value of a
specified number of Common Units from the date of grant of the SAR to the date of exercise. The grant of SARs shall be subject to the following terms and conditions: 
  
 (a) SARs are rights to receive a payment in cash or Common Units as selected by the Committee. The value of these rights,
which are determined by the appreciation in the Common Units subject to the SAR, shall be evidenced by a SAR Award Agreement. Such agreement shall conform to the requirements of the Plan and may contain such other provisions as the Committee shall
deem advisable. 
  
 (b) Except as provided in Section 4(b), the
base price of a SAR shall be not less than 100% of the Fair Market Value of the Common Units subject to the SAR on the date of grant. 
  
 (c) An SAR shall entitle the recipient to receive a payment equal to the excess of the Fair Market Value of the Common Units covered by the SAR on the
date of exercise over the base price of the SAR. Such payment may be in cash, in Common Units, or in any combination, as the Committee shall determine. 
  
 (d) Term of SARs: The SAR Award Agreements shall specify when an SAR may be exercisable and the terms and conditions applicable thereto. Subject to
Section 4(b), the term of an SAR shall in no event be greater than ten years. Unless earlier expired, forfeited or otherwise terminated, each SAR shall expire in its entirety upon the day after the last day of its term. The SAR shall also expire, be
forfeited and terminate at such times and in such circumstances as otherwise provided hereunder, in the LLC Agreement, in the Securityholders’ Agreement or under the SAR Award Agreement. 
  
 (e) Vesting: The total number of Common Units subject to a SAR may, but need
not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The SAR may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other
criteria) as the Committee may deem appropriate. The vesting provisions of individual SARs may vary. Each SAR, to the extent that the Holder has not had a Termination of Service and the SAR has not otherwise lapsed, expired, terminated or been
forfeited, shall vest according to the schedule set forth in the SAR Award Agreement. No SAR shall become exercisable until such SAR becomes vested. 
  
 (f) Minimum Vesting. Notwithstanding the foregoing Section 7(e), to the extent that the following restrictions on vesting are required by Section
260.140.41(f) of Title 10 of the California Code of Regulations at the time of the grant of the SAR which is payable in Units, then: 
  
 (i) A SAR payable in Units and granted to an employee who is not an officer, director or consultant shall provide for vesting of the total
number of Common Unites subject to the SAR at a rate of at least twenty percent (20%) per year over five (5) years from the date the SAR was granted, subject to reasonable conditions such as continued employment; and 
  

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 (ii) SARs granted to officers, directors or consultants may have such vesting provisions
as the Committee. 
  
 (g) No Rights as Securityholder: Except as
required by law, the Holder shall not have any rights as a securityholder with respect to any Units covered by the SARs granted under the Plan until such time as the Units issuable, if any, upon exercise of such SARs have been so issued. 

 
 (h) Restrictions on Transferability: A SAR shall not be pledged, assigned
or transferred except by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of the Holder only by the Holder. The Successors of the Holder shall, in all cases, be subject to the provisions of the SAR Award
Agreement between the Company and the Holder. Notwithstanding the generality of the foregoing, the Committee may (but need not) permit other transfers of SAR; provided such transfers otherwise conform to the requirements of (i) the LLC Agreement,
(ii) the provisions set forth in Annex I and, (iii) to the extent permitted by Section 260.140.41(d) of Title 10 of the California Code of Regulations. 
  

(i) Effect of Termination of Service on Outstanding SAR: 
  
 (i) Termination of Service by Reason of Death or Disability: If a Holder incurs a Termination of Service due
to death or Disability, any unexercised SAR granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Successor Holder), to the extent it was exercisable at the time of termination or on such accelerated basis as
the Committee may determine at or after grant, (x) for a period of 12 months from the date of such Termination of Service or such longer or shorter period as determined by the Committee at or after grant (but in no event shall the period be shorter
than 6 months after Termination of Service) or (y) until the expiration of the stated term of the SAR, whichever period is shorter.  
  
 (ii) Termination Not for Cause: If a Holder incurs a Termination of Service by the Company or the Subsidiary not for Cause, any
vested unexercised SAR granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Successor Holder), to the extent it was vested and exercisable at the time of termination or on such accelerated basis as the
Committee may determine at or after grant, (x) for a period of 60 days from the date of such Termination of Service or such longer or shorter period as determined by the Committee (but in no event shorter than 30 days for a SAR payable in Units) or
until the expiration of the stated term of the SAR, if shorter. 
  
 (iii) Termination for Cause: Unless otherwise provided by the Committee at or after grant, if a Holder incurs a Termination of Service by the Company or the Subsidiary for Cause, all unexercised SARs awarded to the
Holder shall terminate on the date of such termination. 
  

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 (iv) Voluntary Termination: If a Holder incurs a Termination of Service by the
Company or the Subsidiary not for Cause, any vested unexercised SARs granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Successor Holder), to the extent it was vested and exercisable at the time of
termination or on such accelerated basis as the Committee may determine at or after grant, (x) for a period of 30 days from the date of such Termination of Service or such longer or, if the SAR is payable only in cash, shorter period of time as
determined by the Committee or (y) until the expiration of the stated term of the Option, if shorter. 
  
 (j) Exercise of SAR: Subject to vesting and other restrictions provided for hereunder or otherwise imposed in accordance herewith, a SAR may be exercised
by a Holder (or, where appropriate, the Successor Holder) only by notice (in the form prescribed by the Committee) to the Company specifying the number of Common Units for which the SAR will be exercised. Without limiting the scope of the
Committee’s discretion hereunder, the Committee may impose such other restrictions on the exercise of SARs (whether or not in the nature of the foregoing restrictions) as it may deem necessary or appropriate; provided that the SARs shall become
exercisable at the minimum rates described for vesting in Section 7(f). 
  

	8.	RESTRICTED UNITS. 

  
 An Award of Restricted Units is an issuance of a specified number of Common Units to an employee, consultant or non-employee director, which Units are
subject to forfeiture upon the happening of specified events. Such an Award shall be subject to the following terms and conditions: 
  
 (a) An Award of Restricted Units shall be evidenced by a Restricted Unit Agreement. Such agreement shall conform to the requirements of the Plan and may
contain such other provisions as the Committee shall deem advisable. 
  
 (b) Unless otherwise provided by the Board or the Committee, upon a determination of the number of Restricted Units to be distributed to the Holder, the Committee shall direct that a certificate or certificates representing the number of
Common Units be issued to the Holder with the Holder designated as the registered owner. Such certificate(s), if any, representing such Units shall be legended as to sale, transfer, assignment, pledge or other encumbrances during the Restriction
Period and deposited by the Holder, with the Company, to be held in escrow during the Restriction Period.  
  
 (c) During the Restriction Period the Holder shall have the right to receive dividends from and to vote the Restricted Units.  
  
 (d) The Restricted Unit Agreement shall specify the duration of the
Restriction Period and the performance, employment, service or other conditions (including Termination of Service on account of death, Disability or other cause) under which the Restricted Units may be forfeited to the Company. At the end of the
Restriction Period the restrictions imposed hereunder shall lapse with respect to the number of Restricted Units as determined by the Committee, and the legend shall be removed and such number of Common Units delivered to the Holder (or, where
appropriate, the Holder’s legal representative). The 

  

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Committee may, in its sole discretion, modify or accelerate the vesting and delivery of Restricted Units. 
  
 (e) Purchase Price. At the time of grant of a Restricted Unit Award, the
Board will determine the price to be paid by the Participant for each Unit subject to the Restricted Unit Award. Subject to the provisions of Section 4(b) regarding Ten Percent Holders, the price to be paid by the Participant for each Unit subject
to the Restricted Unit Award shall not be less than eighty-five percent (85%) of the Common Unit’s Fair Market Value on the date such award is made or at the time the purchase is consummated. A Restricted Unit Award may be awarded as a bonus
(i.e., with no cash purchase price to be paid) to the extent permissible under applicable law. 
  
 (f) Consideration. At the time of the grant of a Restricted Unit Award, the Board will determined the consideration permissible for the payment of the purchase price of the Restricted Unit Award. The purchase price of
Common Unit acquired pursuant to the Restricted Unit Award shall be paid in one of the following ways: (i) in cash at the time of purchase; (ii) at the discretion of the Board and to the extent legally permissible, according to a deferred payment or
other similar arrangement with the Participant; (iii) by services rendered or to be rendered to the Company; (iv) in any other form of legal consideration that may be acceptable to the Board. 
  
 (g) Vesting. Subject to the “Repurchase Limitation” in Section
8(i), Common Units acquired under a Restricted Unit Award may, but need not, be subject to a repurchase right in favor of the Company in accordance with a vesting schedule to be determined by the Board. 
  
 (h) Termination of Service. Subject to the “Repurchase Limitation”
in Section 8(i), in the event of a Termination of Service, the Company may repurchase or otherwise reacquire any or all of the Common Units held by the Holder that have not vested as of the date of termination under the terms of the Restricted Unit
Award agreement. Provided that the “Repurchase Limitation” in Section 8(i) is not violated, the Company will not exercise its repurchase right until at least six (6) months (or such longer or shorter period of time required to avoid a
charge to earnings for financial accounting purposes) have elapsed following the purchase of the Restricted Units unless otherwise determined by the Board or provided in the Restricted Unit Award agreement. 
  
 (i) Repurchase Limitation. The terms of any repurchase right shall be
specified in the Restricted Unit Award, and the repurchase price may be either the Fair Market Value of the Common Units on the date of Termination of Service or the lower of (i) the Fair Market Value of the Common Units on the date of repurchase or
(ii) their original purchase price. To the extent required by Section 260.140.41 and Section 260.140.42 of Title 10 of the California Code of Regulations at the time a Restricted Unit Award is made, any repurchase right contained in a Restricted
Unit Award granted to a person who is not an officer, director or consultant shall be upon the terms described below: 
  
 (i) Fair Market Value. If the repurchase right gives the Company the right to repurchase the Common Units upon Termination of Service at
not less than the Fair Market Value of the Common Units to be purchased on the date of Termination of Service, then (i) the right to repurchase shall be exercised for cash or cancellation of purchase money 

  

 - 12 - 

 
indebtedness for the Common Units within ninety (90) days of the Termination of Service (or in the case of Common Units issued upon exercise of Restricted
Unit Awards after such date of termination, within ninety (90) days after the date of the exercise) and (ii) the right terminates upon a Public Offering. 
  
 (ii) Original Purchase Price. If the repurchase right gives the Company the right to repurchase the Common Units upon the Termination of
Service at the lower of (i) the Fair Market Value of the Common Units on the date of repurchase or (ii) their original purchase price, then (x) the right to repurchase shall lapse at the rate of at least twenty percent (20%) of the Common Units per
year over five (5) years from the date the Restricted Unit Award is granted (without respect to the date the Restricted Unit Award was exercised or became exercisable) and (y) the right to repurchase shall be exercised for cash or cancellation of
purchase money indebtedness for the Common Units within ninety (90) days of termination of Continuous Service (or in the case of Common Units issued upon exercise of Options after such date of termination, within ninety (90) days after the date of
the exercise). 
  
 (j) Restrictions on Transferability: The right
to purchase a Restricted Unit Award shall not be pledged, assigned or transferred except by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of the Holder only by the Holder. 
  

	9.	TAX WITHHOLDING. 

  
 The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding determined by the Committee to be required by
law. Without limiting the generality of the foregoing, the Committee may, in its discretion, require a Holder to pay to the Company at such time as the Committee determines the amount that the Committee deems necessary to satisfy the Company’s
obligation to withhold federal, state or local income or other taxes incurred by reason of the exercise or vesting of any Award. 
  

	10.	REGULATIONS AND APPROVALS. 

  
 (a) The obligation of the Company to issue Common Units with respect to an Award granted under the Plan shall be subject to all applicable laws, rules and
regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee. 
  
 (b) Without in any manner limiting the Committee’s authority as set
forth in Section 11, the Committee may make such changes to the Plan as may be necessary or appropriate to comply with the rules and regulations of any government authority or to obtain tax benefits applicable to an Award. 
  
 (c) Each Award is subject to the requirement that, if at any time the
Committee determines, in its discretion, that the listing, registration or qualification of Common Units issuable pursuant to the Plan is required by any securities exchange or under any state or federal law, or the consent or approval of any
governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance of an Award, no issuance of Common Units shall be made in whole or in part, unless listing, registration, qualification, 

  

 - 13 - 

 
consent or approval has been effected or obtained free of any conditions in a manner acceptable to the Committee. 
  
 (d) In the event that the disposition of Common Units acquired pursuant to
the Plan is not covered by a then current registration statement under the Securities Act, and is not otherwise exempt from such registration, such Common Units shall be restricted against transfer to the extent required under the Securities Act,
and the Committee may require any individual receiving Common Units pursuant to the Plan, as a condition precedent to receipt of such Common Units, to represent to the Company in writing that such Common Units will be disposed of only if registered
for sale under the Securities Act or if there is an available exemption for such disposition. 
  

	11.	INTERPRETATION AND AMENDMENTS, OTHER RULES. 

  
 (a) The Committee may make such rules and regulations and establish such procedures for the administration of the Plan as it deems appropriate. Without
limiting the generality of the foregoing, the Committee may (i) determine the extent, if any, to which any Award shall be forfeited (whether or not such forfeiture is expressly contemplated hereunder); (ii) interpret the Plan and the Award
Agreements hereunder, with such interpretations to be conclusive and binding on all persons and otherwise accorded the maximum deference permitted by law; and (iii) take any other actions and make any other determinations or decisions that it deems
necessary or appropriate in connection with the Plan or the administration or interpretation thereof. Unless otherwise expressly provided hereunder, the Committee, with respect to any grant, may exercise its discretion hereunder at the time of the
grant or thereafter. In the event of any dispute or disagreement as to the interpretation of the Plan or of any rule, regulation or procedure, or as to any question, right or obligation arising from or related to the Plan, the decision of the
Committee shall be final and binding upon all persons.  
  
 (b) The Board may amend the Plan or any Award as it shall deem advisable, except that no amendment may adversely affect a Holder with respect to an Award previously granted unless such amendments are required in order to comply with
applicable laws; provided that the Board may not make any amendment in the Plan that would, if such amendment were not approved by the holders of the Units, cause the Plan to fail to comply with any requirement of applicable law or regulation,
unless and until the approval of the holders of such Units is obtained. 
  

	12.	CHANGES IN CAPITAL STRUCTURE; CERTAIN CORPORATE TRANSACTIONS. 

  
 (a) Changes in Capital Structure: In the event of a reorganization, recapitalization, spin-off, split-off, split-up, dividend payable in units, issuance
of stock rights, reclassification, combination of units, shares or other securities, merger, consolidation or any other change in the structure of the Company affecting the Units, or any distribution to partners, members or other equity holders,
other than a cash distribution or any other event which in the judgment of the Committee necessitates action by way of adjusting the terms of the outstanding Awards, then the Committee, in its full discretion, shall make appropriate adjustment in
the number and kind of units authorized for use under the Plan and any adjustments to outstanding 

  

 - 14 - 

 
Awards as it determines appropriate. The adjustments to outstanding Awards shall include, but not be limited to, the number of Common Units covered, the
respective prices and/or limitations applicable to the outstanding Awards. No fractional Units shall be issued pursuant to such an adjustment. The Fair Market Value of any fractional Units or shares resulting from adjustments pursuant to this
Section 12 shall, where appropriate, be paid in cash to the Holder. The determinations and adjustments made by the Committee pursuant to this Section 12 shall be conclusive. 
  
 (b) Certain Corporate Transactions: In the event (1) the Company is consolidated with or otherwise combined with or
acquired by a person or entity, (2) of a merger of the Company with or into another entity, (3) of a Change of Control of the Company, (4) of a divisive reorganization, liquidation or partial liquidation of the Company, including, but not limited
to, a Change of Control or (5) of the occurrence of an event described in a Holder’s Award Agreement as a “Certain Corporate Transaction,” the Committee may, on a Holder by Holder basis: 
  
 (i) accelerate the vesting of all outstanding Options and/or
SARs issued under the Plan that remain unvested and terminate the Option and/or SAR immediately prior to the date of any such transaction, provided that the Holder shall have been given at least seven days written notice of such transaction and of
the Committee’s intention to cancel the Options and/or SARs with respect to all Common Units for which the Option and/or SAR remains unexercised; 
  
 (ii) fully vest and/or accelerate the Restriction Period of any Awards; 
  
 (iii) terminate the Award immediately prior to the date of any such transaction, provided that the Holder
shall have been given at least seven days written notice of such transaction and of the Committee’s intention to cancel the Award with respect to all Common Units for which the Award remains unexercised or subject to restriction or forfeiture;

  
 (iv) after having given the Holder a chance
to exercise any outstanding vested Options or SARs, terminate any or all of the Holder’s unexercised Options or SARs. 
  
 (v) cancel any outstanding Awards with respect to all Common Units for which the Award remains unexercised or for which the Award is
subject to forfeiture in exchange for a cash payment of an amount equal to the difference between the then Fair Market Value (provided that the Committee may, in its sole discretion, determine that the Fair Market Value of an unvested or restricted
Award is zero) of the Award less the Exercise Price of an Option, the base price of an SAR or the price (if any) of Restricted Units. If the Fair Market Value of the Common Units subject to the Award is less than the Exercise Price of an Option, the
base price of an SAR or the price (if any) of Restricted Units, the Award shall be deemed to have been paid in full and shall be canceled with no further payment due the Holder; 
  
 (vi) require that the Award be assumed by the successor corporation or that awards for shares or other
interests in the successor corporation with equivalent value be substituted for such Award; or 
  

 - 15 - 

 (vii) take such other action as the Committee shall determine to be reasonable under the
circumstances to permit the Holder to realize the value of the Award. 
  
 The
application of the foregoing provisions, including, without limitation, the issuance of any substitute options, shall be determined in good faith by the Committee in its sole discretion. Any adjustment may provide for the elimination of fractional
Common Units in exchange for a cash payment equal to the Fair Market Value of the eliminated fractional Common Units. 
  
 (c) Committee Authority: The judgment of the Committee with respect to any matter referred to in this Section 12 shall be conclusive and binding
upon each Holder without the need for any amendment to the Plan. 
  

	13.	MISCELLANEOUS. 

  
 (a) No Rights to Employment or Other Service: Nothing in the Plan or in any grant made pursuant to the Plan shall confer on any individual any right to
continue in the employ or other service of the Company or its Subsidiaries or interfere in any way with the right of the Company or its Subsidiaries and its holders of Units to terminate the individual’s employment or other service at any time.

  
 (b) No Fiduciary Relationship: Nothing contained in the Plan,
and no action taken pursuant to the provisions of the Plan, shall create or shall be construed to create a trust of any kind, or a fiduciary relationship between the Committee, the Company or its Subsidiaries, or their officers or the Board, on the
one hand, and the Holder, the Company, its Subsidiaries or any other person or entity, on the other. 
  
 (c) Notices: All notices under the Plan shall be in writing, and if to the Company, shall be delivered to the Committee or mailed to its principal office,
addressed to the attention of the Committee; and if to the Holder, shall be delivered personally, sent by facsimile transmission or mailed to the Holder at the address appearing in the records of the Company. Such addresses may be changed at any
time by written notice to the other party given in accordance with this Section 13(c). 
  
 (d) Exculpation and Indemnification: The Company shall indemnify and hold harmless the members of the Committee and the Board, from and against any and all liabilities, costs and expenses incurred by such persons as a
result of any act or omission to act in connection with the performance of such person’s duties, responsibilities and obligations under the Plan, to the maximum extent permitted by law, other than such liabilities, costs and expenses as may
result from the gross negligence, bad faith, willful misconduct or criminal acts of such persons. 
  
 (e) Captions: The use of captions in this Plan is for convenience. The captions are not intended to provide substantive rights. 
  
 (f) Governing Law: THE PLAN SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
DELAWARE WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAWS. 
  

 - 16 - 

 (g) Information Obligation. To the extent required by Section 260.140.46 of Title 10 of the
California Code of Regulations, the Company shall deliver financial statements to Holders at least annually. This Section 13(g) shall not apply to key employees whose duties in connection with the Company assure them access to equivalent
information. 
  
 IN WITNESS WHEREOF, on behalf of MagnaChip
Semiconductor LLC and pursuant to the direction of the Board, the undersigned hereby adopts the Plan as set forth herein. 
  

			
	 MagnaChip Semiconductor LLC

		
	 By:
	 	 
		
	 Title:
	 	 

  

 - 17 - 

  
 ANNEX I 
  
 Section 4.02 Right to Compel Participation in Certain Transfers. (a)
If the Institutional Securityholders together propose (i) to Transfer not less than 50% of each of their respective Initial Ownership of any class or series of Eligible Securities to a Third Party in a bona fide sale or (ii) a Transfer in which the
Eligible Securities to be Transferred by the Institutional Securityholders, plus the Eligible Securities to be Transferred by the Other Securityholders pursuant to this Section 4.02(a), constitute more than 50% of the outstanding Eligible Securities
in a particular class or series to a Third Party pursuant to a bona fide sale, or (iii) a sale of all or substantially all of the assets of the Company to a Third Party pursuant to a bona fide sale (any of (i), (ii) or (iii), a “Compelled
Sale”), the Institutional Securityholders together may at their option require all Other Securityholders to vote all securities of the Company then held by such Other Securityholders in favor of such Compelled Sale and to Transfer the
Drag-Along Portion of such class or series of Eligible Securities (“Drag-Along Rights”) then held by every Other Securityholder, and in the case of a Compelled Sale involving Common Units (but subject to and at the closing of the
Compelled Sale) to exercise such number of options or warrants (including the Warrant and including, at the option of Hynix, pursuant to Section 2(c) thereof) for Common Units held by every Other Securityholder as is required in order that a
sufficient number of Common Units are available to Transfer the relevant Drag-Along Portion of each such Other Securityholder, for the same consideration per unit of the relevant class of Eligible Security and otherwise on the same terms and
conditions as the Institutional Securityholders, provided that any Other Securityholder who holds options or warrants (including the Warrant) the exercise price per share of which is greater than the per share price at which the Common Units are to
be Transferred to the Third Party may, if required by the Institutional Securityholders to exercise such options or warrants (including the Warrant), in place of such exercise, submit to irrevocable cancellation thereof without any liability for
payment of any exercise price with respect thereto. If the Compelled Sale is not consummated with respect to any Common Units acquired upon exercise of such options or warrants (including the Warrant), or the Compelled Sale is not consummated, such
options or warrants (including the Warrant) shall be deemed not to have been exercised or canceled, as applicable. The CVC US Securityholder Representative and the FP Securityholder Representative, on behalf of the Institutional Securityholders,
shall provide written notice of such Compelled Sale to the Other Securityholders (a “Compelled Sale Notice”) not later than the 15th day prior to the proposed Compelled Sale. The Compelled Sale Notice shall identify the transferee,
in the case of a Compelled Sale pursuant to clauses (i) or (ii) of this Section 4.02(a), the number of Eligible Securities subject to the Compelled Sale, the consideration for which either a Transfer or a sale of all or substantially all of the
assets of the Company, as appropriate, is proposed to be made (the “Compelled Sale Price”) and all other material terms and conditions of the Compelled Sale. The number of Eligible Securities to be sold by each Other Securityholder
will be the Drag-Along Portion of the class of Eligible Securities that such Other Securityholder owns. Each Other Securityholder shall be required to participate in the Compelled Sale on the terms and conditions set forth in the Compelled Sale
Notice and to tender all its Eligible Securities as set forth below. The price payable in such Transfer shall be the Compelled Sale Price. Not later than the tenth day following the date of the Compelled Sale Notice (the “Compelled Sale
Notice Period”), each of the Other Securityholders shall deliver to a representative of the Institutional 

  

 
Securityholders designated in the Compelled Sale Notice certificates (to the extent the Eligible Securities are certificated), and in the case of options or
warrants (including the Warrant), the applicable instrument, representing all Eligible Securities comprising the Drag-Along Portion held by such Other Securityholder, duly endorsed, together with all other documents required to be executed in
connection with such Compelled Sale or, if such delivery is not permitted by applicable law, an unconditional agreement to deliver such Eligible Securities pursuant to this Section 4.02(a) at the closing for such Compelled Sale against delivery to
such Other Securityholder of the consideration therefor. If an Other Securityholder should fail to deliver such certificates to the Institutional Securityholders, the Company (subject to reversal under Section 4.02(b)) shall cause the books and
records of the Company to show that such Eligible Securities are bound by the provisions of this Section 4.02(a) and that such Eligible Securities shall be Transferred to the Third Party immediately upon surrender for Transfer by the holder thereof.
The Other Securityholders shall (a) be required (i) to bear their proportionate share of any escrows, holdbacks or adjustments in purchase price and any transaction expenses, (ii) to make such representations, warranties and covenants and enter into
such agreements as are customary for transactions of the nature of the Compelled Sale, in each case under the terms of any definitive agreements relating to such Compelled Sale, (b) benefit from all of the same provisions of the definitive
agreements as the Institutional Securityholders, (c) with respect to each class of Eligible Securities to be Transferred in such Compelled Sale, have the right to receive the same form of consideration and same amount of consideration as each other
holder of such class, and (d) if any holders of a class of Eligible Securities are given an option as to the form and amount of consideration received, each holder of such class of Eligible Securities shall be given the same option, it being
understood that any liability of any Other Securityholder for indemnification or similar post-closing obligations shall not exceed the consideration such Other Securityholder receives in the Compelled Sale and shall be a proportional share of any
such liability based on such Other Securityholder’s share of the aggregate consideration in the Compelled Sale. 
  
 (b) The Institutional Securityholders shall have a period of 90 days from the date of receipt of the Compelled Sale Notice to consummate the Compelled
Sale on the terms and conditions set forth in such Compelled Sale Notice, provided that, if such Compelled Sale is subject to regulatory approval, such 90-day period shall be extended until the expiration of five Business Days after all such
approvals have been received, but in no event later than 180 days following the receipt of the Compelled Sale Notice by the Other Securityholders. If the Compelled Sale shall not have been consummated during such period, the Institutional
Securityholders shall return to each of the Other Securityholders all certificates or other applicable instruments (including the Warrant) representing Eligible Securities that such Other Securityholders delivered for Transfer pursuant hereto,
together with any documents in the possession of the Institutional Securityholders executed by the Other Securityholders in connection with such proposed Transfer, and all the restrictions on Transfer contained in the Securityholders’ Agreement
or otherwise applicable at such time with respect to such Eligible Securities owned by the Other Securityholders shall again be in effect. 
  
 (c) Concurrently with the consummation of the Transfer of Eligible Securities pursuant to this Section 4.02, the CVC US Securityholder Representative and
the FP Securityholder Representative, on behalf of the Institutional Securityholders, shall give notice thereof to the Other Securityholders, shall remit to each of the Other Securityholders who have 

  

 - 2 - 

 
surrendered their certificates or other applicable instruments the total consideration (the cash portion of which is to be paid by wire transfer of
immediately available funds, or if requested by the Other Securityholders, bank or certified check) for the Eligible Securities Transferred pursuant hereto, less such Other Securityholder’s proportionate share of any escrows, holdbacks or
adjustments in purchase price, and any transaction expenses and shall furnish such other evidence of the completion and time of completion of such Transfer and the terms thereof as may be reasonably requested by such Other Securityholders. The
Institutional Securityholders shall promptly remit any additional consideration payable upon the release of any escrows or holdbacks or the payment of any adjustments. 
  
 (d) Notwithstanding anything contained in this Section 4.02, there shall be no liability on the part of the Institutional
Securityholders to the Other Securityholders (other than the obligation to return any certificates or other applicable instruments representing Eligible Securities received by the Institutional Securityholders) if the Transfer of Eligible Securities
pursuant to this Section 4.02 is not consummated for whatever reason, regardless of whether the Institutional Securityholders have delivered a Compelled Sale Notice. Whether to effect a Transfer of Eligible Securities pursuant to this Section 4.02
by the Institutional Securityholders is in the sole and absolute discretion of the Institutional Securityholders. 
  
 (e) This Section 4.02 shall terminate upon the third anniversary of the First Public Offering. 
  
 Definitions 
  
 Capitalized terms not otherwise defined in this Annex I shall have the meaning set forth in
the MagnaChip Semiconductor LLC Equity Incentive Plan (the “Plan”). The following terms, as used herein, have the following meanings: 
  
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or
under common control with such Person, provided that no securityholder of the Company shall be deemed an Affiliate of any other securityholder solely by reason of any investment in the Company. For the purpose of this definition, the term
“control” (including with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Aggregate Ownership” means, with respect
to any Securityholder or group of Securityholders, and with respect to any class of Eligible Securities, the total number of shares, units (or other unit of measurement into which such securities are designated) of such class of Eligible Securities
“beneficially owned” (as such term is defined in Rule 13d-3 of the Exchange Act) (without duplication) by such Securityholder or group of Securityholders as of the date of such calculation, calculated as if all units issuable in respect of
securities convertible into or exchangeable for such units, have been issued and all options, warrants (including the Warrant) and other rights to purchase or subscribe for units of such class of Eligible Securities have been exercised (regardless
of any vesting provisions contained therein); provided, that the determination of the Aggregate Ownership of a Securityholder with respect to Common Units 

  

 - 3 - 

 
shall not include any of a Securityholder’s Preferred Units that have not been converted into Common Units at the time of determination. 
  
 “Business Day” means any day except a
Saturday, Sunday or other day on which commercial banks in New York City are authorized by law to close. 
  
 “Company Securities” means (i) the Common Units and Preferred Units, (ii) securities convertible into or exchangeable for
Common Units and/or Preferred Units and (iii) options, warrants (including the Warrant) or other rights to acquire Common Units, Preferred Units or any other equity or equity-linked security issued by the Company. 
  
 “CVC US Securityholder Representative”
means CVC Equity Fund as agent for CVC Employee Fund, CVC Equity Fund, CVC Executive Fund, CVC Co-Investors, and their Permitted Transferees that are Securityholders. The entity appointed as the CVC US Securityholder Representative may be replaced
at any time and from time to time by the vote of a majority of the Eligible Securities held by CVC Employee Fund, CVC Equity Fund and CVC Executive Fund, CVC Co-Investors, and their Permitted Transferees. 
  
 “Dollars” or “$” means the
lawful currency of the United States of America. 
  
 “Drag-Along Portion” means, with respect to any Other Securityholder and any series or class of Eligible Securities, (i) the Aggregate Ownership of such series or class of Eligible Securities by such Other Securityholder
multiplied by (ii) a fraction, the numerator of which is the number of units of such series or class of Eligible Securities proposed to be purchased by a Third Party in the applicable Compelled Sale under Section 4.02 and the denominator of which is
the Fully-Diluted number of units of such series or class of Eligible Securities. 
  
 “Eligible Securities” means (a) the Company Securities and (b) any New Securities purchased by a Securityholder pursuant
to Section 4.04. 
  
 “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
  
 “First Public Offering” means the first Public Offering of Common Units (or securities into which the Common Units have been converted or changed) after the date hereof. 
  
 “FP Securityholder Representative” means FP
LP as agent for FP LP and FP Fund A and their Permitted Transferees that are Securityholders. The entity appointed as the FP Securityholder Representative may be replaced at any time and from time to time by the vote of a majority of the Eligible
Securities held by FP LP and FP Fund A and their Permitted Transferees. 
  
 “Fully Diluted” means, with respect to any series or class of Eligible Securities, all outstanding units of such series or class of Eligible Securities and all units issuable in respect of securities
convertible into or exchangeable for such units, all options, warrants (including the Warrant) and other rights to purchase or subscribe for units of such series or class of Eligible Securities or securities convertible into or exchangeable for
units of such series or class of Eligible Securities, provided that, to the extent any of the foregoing options, warrants or other 

  

 - 4 - 

 
rights to purchase or subscribe for such Eligible Securities are subject to vesting, the Eligible Securities subject to vesting shall be included in the
definition of “Fully Diluted” only upon and to the extent of such vesting. 
  
 “Initial Ownership” means, with respect to any Securityholder and any series or class of Eligible Securities, the
Aggregate Ownership of such series or class by such Securityholder as of October 6, 2004, or, in the case of any Person who shall become a party to the Securityholders’ Agreement on a later date, as of such later date, in each case taking into
account any unit split, unit dividend, reverse unit split or similar event. 
  
 “Institutional Securityholder” means each of CVC US and FP and, to the extent either entity shall have transferred any of its Eligible Securities to any of its Permitted Transferees, shall mean the
Institutional Securityholder and such Permitted Transferees, taken together. 
  
 “New Securities” means any equity securities of the Company issued after the date hereof that do not constitute Company Securities. 
  
 “Other Securityholders” means all Securityholders other than the Institutional
Securityholders and, to the extent any such Other Securityholders shall have transferred any of their Eligible Securities to any of their Permitted Transferees, shall mean the Other Securityholders and such Permitted Transferees, taken together. For
purposes of this Annex I, “Other Securityholders” shall include recipients of Awards under the Plan. 
  
 “Permitted Transferee” means 
  
 1.1.1.1. in the case of CVC Asia II Limited, CVC Asia LP, CVC Asia Investors and each of their respective Permitted Transferees, each of
(A) CVC Asia II, LP, Asia Enterprise II Domestic LLC, Asia Enterprise II Offshore, L.P., Citigroup, Inc. or any of its Affiliates in their capacity as co-investors with such Persons and any other fund, co-investment partnership or similar investment
vehicle formed for the purpose of investing with CVC Asia LP or CVC Asia II LP (each a “CVC Asia Pacific Fund”), (B) any general or limited partner of any CVC Asia Pacific Fund or co-investment partnership (each, a “CVC Asia
Pacific Partner,” and, collectively, the “CVC Asia Pacific Partners”), and any corporation, partnership or other entity that is an Affiliate of any CVC Asia Pacific Partner (collectively “CVC Asia Pacific
Affiliates”), (C) any managing director, general partner, director, limited partner, officer or employee of any CVC Asia Pacific Fund, any CVC Asia Pacific Partner or any CVC Asia Pacific Affiliate, or any spouse, lineal descendant,
sibling, parent, heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (C) (collectively, “CVC Asia Pacific Associates”), (D) any trust, the
beneficiaries of which, any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited partners of which include only one or more CVC Asia Pacific Funds, CVC
Asia Pacific Partners, CVC Asia Pacific Affiliates, CVC Asia Pacific Associates, their spouses or their lineal descendants 

  

 - 5 - 

 
and (E) with respect to CVC Asia II Limited, Citicorp North America, Inc. (“Citicorp N.A.”) in its capacity as a secured lender under the
certain Specific Recourse Loan Facility Agreement (the “CVC Asia Loan Agreement”), dated as of September 15, 2004, and any Affiliate of Citicorp N.A. to whom Citicorp N.A. assigns its rights and obligations under the CVC Asia Loan
Agreement (the Persons described in clauses (A) through (E), the “CVC Asia Pacific Permitted Transferees”); provided, that each of CVC Employee Fund, CVC Equity Fund and CVC Executive Fund shall not be a “Permitted
Transferee” of any CVC Asia Pacific Investors; provided further that to the extent a Person is a Permitted Transferee under both subparagraphs (i) and (ii) of this definition of “Permitted Transferee” such Person may transfer
any Eligible Securities it receives as a Permitted Transferee pursuant to this subparagraph (i) only to a CVC Asia Pacific Permitted Transferee and, for purposes of any provision of the Securityholders’ Agreement pursuant to which the Eligible
Securities of CVC Asia Pacific Investors and its Permitted Transferees are aggregated hereunder, such Person shall be deemed a Permitted Transferee pursuant to this subparagraph (i) only to the extent of the Eligible Securities held by such Person
as a Permitted Transferee pursuant to this subparagraph (i); 
  
 1.1.1.2. in the case of CVC Employee Fund, CVC Equity Fund, CVC Executive Fund, CVC Co-Investors and each of their respective Permitted Transferees, (A) any CVC US fund or co-investment partnership or similar
investment vehicle, (B) (1) any general or limited partner of any CVC US fund or co-investment partnership (collectively, a “CVC US Partner”), and (2) Citigroup and any corporation, partnership or other entity that is an Affiliate
of Citigroup or any CVC US Partner (collectively “CVC US Affiliates”), (C) any CVC Co-Investor, Diana K. Mayer or any managing director, general partner, director, limited partner, officer or employee of any CVC US fund, any CVC US
Partner or any CVC US Affiliate, or any spouse, lineal descendant, sibling, parent, heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (C) (collectively, “CVC
US Associates”), (D) any trust, the beneficiaries of which, any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited partners of which include
only CVC US, CVC US Partners, CVC US Affiliates, CVC Associates, their spouses or their lineal descendants (the Persons described in clauses (A) through (D), the “CVC US Permitted Transferees”); provided, that each of CVC
Asia II Limited, CVC Asia LP and CVC Asia Investors shall not be a “Permitted Transferee” of CVC US; provided further that to the extent a Person is a Permitted Transferee under both subparagraphs (i) and (ii) of this definition of
“Permitted Transferee” such Person may transfer any Eligible Securities it receives as a Permitted Transferee pursuant to this subparagraph (ii) only to a CVC US Permitted Transferee and, for purposes of any provision of the
Securityholders’ Agreement pursuant to which the Eligible Securities of CVC US and its Permitted Transferees are aggregated hereunder, such Person shall be deemed a Permitted Transferee pursuant to this subparagraph (ii) only to the extent of
the Eligible Securities held by such Person as a Permitted Transferee pursuant to this subparagraph (ii); 
  

 - 6 - 

 1.1.1.3. in the case of FP LP, FP Fund A, and each of their Permitted Transferees, (A)
any FP fund or co-investment partnership or limited liability company, including without limitation, FP Annual Investors, LLC, a Delaware limited liability company and FP-Magnachip Coinvest, LLC, a Delaware limited liability company, (B) (1) any
general or limited partner of any FP fund or co-investment partnership (collectively, an “FP Partner”), and (2) any corporation, partnership or other entity that is an Affiliate of any FP Partner (collectively “FP
Affiliates”) or (3) any manager or member of any FP co-investment limited liability company (collectively, “FP Member”), (C) any managing director, general partner, director, limited partner, officer or employee of any FP
fund, any FP Partner, any FP Affiliate or any FP Member, or any spouse, lineal descendant, sibling, parent, heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (C)
(collectively, “FP Associates”), (D) any trust, the beneficiaries of which, any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited
partners of which include only FP, FP Partners, FP Affiliates, FP Associates, FP Members, their spouses or their lineal descendants; 
  
 1.1.1.4. in the case of Peninsula and its Permitted Transferees, any Affiliate of Peninsula; provided, that the consent of both the
CVC US Securityholder Representative and the FP Securityholder Representative, which consent shall not be unreasonably withheld shall be obtained prior to such Transfer; 
  
 1.1.1.5. in the case of Hynix and its Permitted Transferees, any controlled Affiliate of Hynix; and

  
 1.1.1.6. in the case of any Other
Securityholder (other than Peninsula and Hynix) that is or becomes a party to the Securityholders’ Agreement and its Permitted Transferees, (A) a Person to whom Common Units are Transferred from such Other Securityholder (1) by will or the laws
of descent and distribution or (2) by gift without consideration of any kind, provided that, in the case of clause (2), such transferee is (x) the spouse or the lineal descendant, sibling or parent of such Securityholder, or (y) if such
Securityholder is a trust, or family corporation, limited liability company or partnership of the type described in the following clause (B), a beneficiary of, or a stockholder, member or partner of, such Securityholder or (B) any trust, the
beneficiaries of which, any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited partners of which include only such Other Securityholder or its
Permitted Transferees. 
  
 “Person” means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

  

 - 7 - 

 “Preferred Units” means the Series A Preferred Units and the Series B
Preferred Units. 
  
 “Public
Offering” means an underwritten public offering of the Common Units of the Company (or any successor to the Company) pursuant to an effective registration statement under the Securities Act other than pursuant to a registration statement on
Form S-4 or Form S-8 or any similar or successor form, provided that the proceeds of such public offering amount to at least $30,000,000 of gross proceeds to the Company (or any successor to the Company). 
  
 “Securities” means the Common Units and
Preferred Units. 
  
 “Securities
Act” means the United States Securities Act of 1933, as amended. 
  
 “Securityholder” means each Person (other than the Company) who shall be a party to or bound by the Securityholders’ Agreement, so long as such Person shall “beneficially own” (as such
term is defined in Rule 13d-3 of the Exchange Act) any Eligible Securities. 
  
 “Securityholders’ Agreement” means the Amended and Restated Securityholders’ Agreement dated as of October 6, 2004 among (i) the Company, (ii) CVC Capital Partners Asia Pacific LP, a Cayman
Islands limited partnership (“CVC Asia LP”), Asia Investors LLC, a Delaware limited liability company (“CVC Asia Investors”) and CVC Capital Partners Asia II Limited, a Jersey company (“CVC Asia II
Limited” and, collectively with CVC Asia LP and CVC Asia Investors, “CVC Asia Pacific Investors”), (iii) Citigroup Venture Capital Equity Partners, L.P., a Delaware limited partnership (“CVC Equity Fund”),
CVC Executive Fund LLC, a Delaware limited liability company (“CVC Executive Fund”), CVC/SSB Employee Fund, L.P., a Delaware limited partnership (“CVC Employee Fund”), the persons named on Schedule I thereto
(collectively, the “CVC Co-Investors” and, collectively with CVC Equity Fund, CVC Executive Fund and CVC Employee Fund, “CVC US”), (iv) Francisco Partners, L.P., a Delaware limited partnership (“FP
LP”), Francisco Partners Fund A, L.P., a Delaware limited partnership (“FP Fund A” and, collectively, with FP LP and FP Fund A, “FP”), (v) Peninsula Investment Pte. Ltd., a Singapore private company
(“Peninsula”), (vi) Hynix Semiconductor Inc. (“Hynix”), (vii) certain management investors named therein and (viii) such persons that shall sign joinder agreements to the Securityholders’ Agreement in
accordance with the terms hereof. 
  
 “Series A Preferred Units” means the Series A Preferred Membership Interests of the Company having the rights, including voting rights, described in the LLC Agreement and any securities into which such Series A Preferred
Membership Interests may hereafter be converted or changed. 
  
 “Series B Preferred Units” means the Series B Preferred Membership Interests of the Company having the rights, including voting rights, described in the LLC Agreement and any securities into which
such Series B Preferred Membership Interests may hereafter be converted or changed. 
  
 “Subsidiary” means, with respect to any Person, any entity of which securities or other ownership interests having
ordinary voting power to elect a majority of the board of 

  

 - 8 - 

 
directors or other persons performing similar functions are at the time directly or indirectly owned by such Person. 
  
 “Third Party” means a prospective
purchaser(s) of (i) Eligible Securities from a Securityholder or (ii) all or substantially all of the assets of the Company, in an arm’s-length transaction where such purchaser is not a Permitted Transferee or other Affiliate of any
Securityholder. 
  
 “Transfer”
means, with respect to any Eligible Security, (i) when used as a verb, to sell, assign, dispose of, exchange, pledge, encumber, hypothecate or otherwise transfer such security or any participation or interest therein, whether directly or indirectly,
or agree or commit to do any of the foregoing and (ii) when used as a noun, a direct or indirect sale, assignment, disposition, exchange, pledge, encumbrance, hypothecation or other transfer of such security or any participation or interest therein
or any agreement or commitment to do any of the foregoing. 
  
 “Warrant” means the warrant dated as of the Closing Date issued by the Company to Hynix for the purchase of Common Units. 
  

 - 9 -R&D Equipment Utilization Agreement, dated October 6, 2004-Hynix and MagnaChip

 Exhibit 10.26 
  
 Execution Copy 
  
 R&D EQUIPMENT UTILIZATION AGREEMENT 
  
 Between 
  
 Hynix Semiconductor Inc. 
  
 And 
  
 MagnaChip Semiconductor,
Ltd. 
  
 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 
  

					
	 Article 1.
	  	Definition	  	1
			
	 Article 2.
	  	Term of Agreement; Duration of Use/Services	  	5
			
	 Article 3.
	  	Obligations of Hynix	  	5
			
	 Article 4.
	  	Obligations of NewCo	  	6
			
	 Article 5.
	  	Use of Equipments	  	7
			
	 Article 6.
	  	Fees	  	8
			
	 Article 7.
	  	Maintenance Activities	  	9
			
	 Article 8.
	  	Coordinating Committee	  	10
			
	 Article 9.
	  	Payment	  	11
			
	 Article 10.
	  	Representations, Warranties and Covenants	  	12
			
	 Article 11.
	  	Force Majeure	  	13
			
	 Article 12.
	  	Termination	  	14
			
	 Article 13.
	  	[Intentionally Omitted]	  	15
			
	 Article 14.
	  	Indemnification	  	15
			
	 Article 15.
	  	Limitation of Liability	  	15
			
	 Article 16.
	  	Right of First Refusal	  	16
			
	 Article 17.
	  	Assignment	  	17
			
	 Article 18.
	  	Governing Law; Dispute Resolution	  	17
			
	 Article 19.
	  	Confidentiality	  	18
			
	 Article 20.
	  	Miscellaneous	  	19
			
	 Exhibit A
	  	Hynix Analysis Equipments (Part A)	  	 
			
	 Exhibit B
	  	Hynix Analysis Equipments (Part B)	  	 
			
	 Exhibit C
	  	Hynix Measurement Equipments A	  	 
			
	 Exhibit D
	  	Hynix Measurement Equipments B	  	 
			
	 Exhibit E
	  	KrF Scanner	  	 
			
	 Exhibit F
	  	ArF Scanner	  	 
			
	 Exhibit G.1
	  	NewCo Measurement Equipments	  	 
			
	 Exhibit G.2
	  	NewCo Analysis Equipments	  	 
			
	 Exhibit H
	  	Hynix New Analysis Equipments	  	 
			
	 Appendix I
	  	Calculation Formula for Fees	  	 
			
	 Appendix II
	  	Calculation Formula for Fees per Hour	  	 

 R&D EQUIPMENT UTILIZATION AGREEMENT 
  
 This R&D EQUIPMENT UTILIZATION 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 (“Hynix”); and 

  

	(2)	MagnaChip Semiconductor, Ltd., a company organized and existing under the laws of Korea with its registered office at 1, Hyangjeong-Dong, Heungduk-Gu, Cheongju-Si,
Chungcheongbuk-Do, Korea (“NewCo”) (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,
NewCo has agreed to purchase and acquire the Acquired Assets (as defined in the BTA) from Hynix subject to the terms and conditions set forth in the BTA; 
  
 WHEREAS, Hynix owns the Hynix Equipments in the research center located at Cheongju, Korea (the “Research Center”), KrF Scanner and ArF Scanner in the research
and development line in the “R2” building located at Ichon, Korea and the Hynix New Analysis Equipments in the M8/M9 line in the “C3” building located at Cheongju, Korea, and NewCo will own the NewCo Measurement Equipments in the
Research Center and lease the NewCo Analysis Equipments after the Closing; 
  
 WHEREAS, the Parties desire to enter into an agreement as contemplated by the BTA whereby NewCo will use the Hynix Equipments, Hynix New Analysis Equipments, KrF Scanner and ArF Scanner and engage Hynix to provide NewCo with the maintenance
and operation services for the NewCo Equipments, and Hynix will grant to NewCo the right to use the Hynix Equipments, Hynix New Analysis Equipments, KrF Scanner and ArF Scanner and provide NewCo with the maintenance and operation services for the
NewCo Equipments; and 
  
 WHEREAS, the execution and delivery of this Agreement is
a condition to Closing under the BTA. 
  
 NOW, THEREFORE, in consideration of the
premises and mutual covenants and agreements hereinafter set forth, and intending to be legally bound hereby, the Parties agree as follows: 
  
 Article 1. Definitions 
  

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

  
 “Affiliate” shall have the meaning ascribed to such term in the
BTA. 

 “Aggregate Usage Value” shall mean statistical weight of the Measurement and Analysis
Equipments, the numerical values of which are set forth in Exhibits A to D and G.1 and G.2 hereto. 
  
 “ArF Scanner” shall mean the ArF scanner and its auxiliary facilities owned by Hynix and installed in the “R2” building located in
Ichon, Korea as of the Closing Date, the details of which are specified in Exhibit F hereto. 
  
 “AUP” shall mean the agreed-upon-procedures which Samil PricewaterhouseCoopers (formerly Samil Accounting Corporation) has performed in connection with the financial statements attached in Schedule 2.4 of
the BTA. 
  
 “BTA” shall have the meaning ascribed to
such term in the Recitals. 
  
 “Business” shall have
the meaning ascribed to such term in the BTA. Any reference to the “conduct of the Business” or the “operation of the Business” shall refer to the conduct or operation of the Business as conducted as of the execution date of the
BTA. 
  
 “Business Day” shall mean any day other than a
Saturday, Sunday or a day on which banks in Seoul are authorized or obligated by relevant law to close. 
  
 “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. 
  
 “Confidential Information” shall have the meaning ascribed to such
term in Section 19.1. 
  
 “Coordinating Committee”
shall have the meaning ascribed to such term in Section 8.1. 
  
 “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. For the purposes of Articles 14 and 15, Damages also shall include any and all increases in insurance premiums that are reasonably demonstrably attributable to the breach by NewCo or
Hynix, as the case may be, of its representations, warranties, agreements and covenants expressly contained in this Agreement, or negligence, gross negligence, intentional breach or willful misconduct of NewCo or Hynix, as the case may be, for the
two following annual policy periods. 
  
 “Event of Force
Majeure” shall have the meaning ascribed to such term in Section 11.1. 
  
 “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 laws, or any registration with, or report or notice to, any Governmental Entity pursuant to any applicable laws. 
  

 2 

 “Governmental Entity” shall mean a court, arbitral tribunal, administrative agency or
commission or other governmental or other regulatory authority or agency. 
  
 “Hynix Analysis Equipments” shall mean certain analysis equipments owned by Hynix and installed in the Research Center as of the Closing Date, the details of which are specified in Exhibit A and Exhibit B
hereto. 
  
 “Hynix Equipments” shall mean Hynix
Measurement Equipments A, Hynix Measurement Equipments B and Hynix Analysis Equipments. 
  
 “Hynix Measurement Equipments A” shall mean certain measurement equipments owned by Hynix and installed in the Research Center as of the Closing Date, the details of which are specified in Exhibit C hereto.

  
 “Hynix Measurement Equipments B” shall mean certain
measurement equipments owned by Hynix and installed in the Research Center as of the Closing Date, the details of which are specified in Exhibit D hereto. 
  
 “Hynix New Analysis Equipments” shall mean certain analysis equipments owned by Hynix, and installed in the M8/M9 line in the “C3”
building in Cheongju, Korea the details of which are specified in Exhibit H hereto. 
  
 “Indemnified Party” shall have the meaning ascribed to such term in Section 14.1. 
  
 “Indemnifying Party” shall have the meaning ascribed to such term in Section 14.1. 
  
 “Maintenance Activities” shall have the meaning ascribed to such
term in Section 7.1. 
  
 “KrF Scanner” shall mean the
KrF scanner and its auxiliary facilities owned by Hynix and installed in the “R2” building located at Ichon, Korea as of the Closing Date, the details of which are specified in Exhibit E hereto. 
  
 “Measurement and Analysis Equipments” shall mean certain
measurement and analysis equipments, consisting of Hynix Equipments and NewCo Equipments. 
  
 “NewCo Analysis Equipments” shall mean certain analysis equipments owned by Chung Nam University and leased to NewCo, the details of which are specified in Exhibit G.2 hereto. 
  
 “NewCo Equipments” shall mean NewCo Analysis Equipments and NewCo
Measurement Equipments. 
  
 “NewCo Measurement
Equipments” shall mean certain measurement equipments transferred to NewCo by Hynix upon Closing and installed in the Research Center as of the Closing Date, the details of which are specified in Exhibit G.1 hereto. 
  

 3 

 “Notice of Sale” shall have the meaning ascribed to such term in Article 16. 
  
 “Operators” shall have the meaning ascribed to such term in
Section 3.5. 
  
 “Permitted Business” shall mean the
Business or any other semiconductor, information technology or other technology related business. 
  
 “Research Center” shall have the meaning ascribed to such term in the Recitals. 
  
 “Subsidiaries” shall have the meaning ascribed to such term in the BTA. 
  
 “Term” shall have the meaning ascribed to such term in Article 2.

  
 “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, exhibit and schedule references are to the articles, sections, paragraphs, exhibits and schedules 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. 

  

 4 

	 	(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. Term of Agreement; Duration of Use/Services

  

	2.1.	This Agreement shall become effective on the date hereof and continue in full force and effect for an initial term of five (5) years thereafter unless otherwise earlier terminated
pursuant to this Agreement (the “Initial Term”). After the Initial Term, this Agreement may be extended for additional one (1)-year periods by mutual written agreement of the Parties at least ninety (90) days prior to the expiration of the
Initial Term or any extension thereof (the “Renewal Period(s)”). The Term of this Agreement is, collectively, the Initial Term and any Renewal Period(s). 

  

	2.2.	Notwithstanding any other provision of this Agreement to the contrary, (i) NewCo may terminate this Agreement with respect to the use of any piece(s) of the Hynix Equipments; Hynix
New Analysis Equipments, KrF Scanner and/or ArF Scanner and/or any other use/service provided by Hynix hereunder (including the provision of technical assistance and/or maintenance and operation services), in whole or in part, by providing Hynix
with sixty (60) days prior notice of such termination and (ii) NewCo shall not be obligated to pay Hynix any fees attributable to such cancelled use/service(s), or part thereof, except as otherwise accrued prior to termination.

  
 Article 3. Obligations of Hynix

  

	3.1.	Subject to the terms and conditions hereunder, the Parties agree that the Hynix Equipments shall be used based on the following principles: 

  

	 	(a)	Hynix Measurement Equipments A shall be solely used by Hynix; and 

  

	 	(b)	Hynix Measurement Equipments B and Hynix Analysis Equipments shall be used by Hynix and NewCo on a “first come first served” basis. 

  

	3.2.	Subject to Section 5.2, Hynix shall grant to NewCo the right to use the KrF Scanner. 

  

	3.3.	Subject to Section 5.3, Hynix shall grant to NewCo the right to use the ArF Scanner. 

  

	3.4.	Subject to Section 5.4, Hynix shall grant to NewCo the right to use the Hynix New Analysis Equipments. 

  

	3.5.	Hynix shall, through its directors, officers, employees, agents or representatives who are responsible for the operation and maintenance of Hynix Equipments, Hynix New

  

 5 

 Analysis Equipments, KrF Scanner and/or ArF Scanner (collectively, the “Operators”), provide
NewCo with such assistance (such as instructions, explanations, consultations or interpretations of data) as may be necessary or prudent for NewCo’s use of the Hynix Equipments, Hynix New Analysis Equipments, KrF Scanner and/or ArF Scanner.

  

	3.6.	Hynix shall provide such maintenance and operation services, such as normal inspections or repairs, as may be necessary or prudent for the maintenance and operation of the NewCo
Equipments. 

  

	3.7.	In addition to the right to use the pieces of equipment or receive the maintenance and operation services on pieces of equipment set forth herein, the Parties acknowledge and agree
that there may be additional pieces of equipment which have not been identified but which the Business has historically been granted the right to use or for which the Business has historically received maintenance and operation services, which such
use or maintenance and operation services shall continue to be required or desired by NewCo. If, within one year of the Closing Date, any such additional equipment or additional maintenance and operation services are identified and requested
reasonably in advance by NewCo, Hynix shall grant NewCo the right to use such additional equipment and shall provide such maintenance and operation services in a manner consistent with the usage and maintenance and operation services accorded to
NewCo with respect to like equipment hereunder, at a price no greater than actual cost, and, to the extent applicable, calculated by taking into account the AUP. Any such additional use/services shall be provided until
the fifth anniversary of the date hereof, subject to Section 2.2. With respect to additional maintenance and operation services and the right to use additional equipment which historically have not been provided by Hynix with
respect to the Business (“New Service”), at the request of NewCo, the Parties will discuss in good faith the provision of any such New Service by Hynix to NewCo. 

  

	3.8.	All services provided by Hynix to NewCo under this Agreement (including the provision of technical assistance and/or maintenance and operation services) shall be performed in
compliance with all applicable laws and regulations in all material respects, in a manner, to the extent and at a time, substantially consistent with past practice and in the manner, extent and time in which Hynix performs similar services for its
own benefit (including with respect to using employees with similar levels and experience). 

  
 Article 4. Obligations of NewCo 
  

	4.1.	NewCo shall pay to Hynix the fees set forth in Article 6 which are exclusive of all taxes or duties imposed by any Governmental Entity with respect to this Agreement.

  

	4.2.	NewCo shall comply, in all material respects, with (i) all laws and regulations, (ii) all reasonable internal safety, security and administrative rules and regulations adopted by
Hynix, and (iii) the reasonable directions and instructions given by the Operators to NewCo, provided Hynix has provided NewCo with written notice and copies, with respect to each item set forth in subitems (ii) through (iii) of this sentence, to
the extent that each of the foregoing are applicable to NewCo’s use of the Hynix Equipments, Hynix New Analysis Equipments, KrF Scanner and/or ArF Scanner. 

  

 6 

	4.3.	Subject to Article 17, unless Hynix otherwise agrees, NewCo shall use the Hynix Equipments, Hynix New Analysis Equipments, KrF Scanner and/or ArF Scanner for the sole purpose of
operating and maintaining NewCo’s business. NewCo and NewCo’s employees may access and/or operate any of the Hynix Measurement Equipments B, Hynix Analysis Equipments and Hynix New Analysis Equipments without consent or notification. NewCo
and NewCo’s employees may not access the KrF Scanner or the ArF Scanner without the prior written consent of Hynix, which consent shall not be unreasonably withheld. Upon written notice to Hynix, NewCo may grant any third party the right to
access and/or operate any of the Hynix Measurement Equipments B. NewCo may not grant any third party the right to access any Hynix Analysis Equipments, Hynix New Analysis Equipments, KrF Scanner and/or ArF Scanner without Hynix’s prior written
consent. No consent or notification shall be required for measurement or analysis of third party samples, or for measurement or analysis by NewCo or Hynix of samples on behalf of a third party. 

  
 Article 5. Use of Equipments 
  

	5.1.	The use of the Hynix Equipments shall be arranged based on the principles set forth in Section 3.1; provided, however, that (i) with respect to the Hynix Measurement Equipments B, a
Party shall not make a reservation for any particular piece of such Hynix Measurement Equipments B for more than [*****], and (ii) with respect to the Hynix Analysis Equipments, a Party shall not request for an analysis of
samples which requires use of such Hynix Analysis Equipments for more than [*****]; and provided that in case of emergency or longer required use or reservation time, the Parties shall mutually consult in good faith on a
reasonable schedule for use or reservation. 

  

	5.2.	NewCo shall be permitted to use the KrF Scanner for up to [*****]; provided that should NewCo’s usage requirements change, the Parties shall
negotiate in good faith to accommodate the needs of NewCo’s business. NewCo shall make a request at least two (2) days prior to the date of intended use of the KrF Scanner and Hynix shall notify NewCo within one (1) day of such request (a)
whether NewCo can use KrF Scanner on such requested date and (b) if NewCo cannot use the KrF Scanner on such requested date, the next available time for NewCo’s use; provided, however, that in case of emergency, the Parties shall
mutually consult in good faith and agree to change the applicable reservations to the extent possible to accommodate NewCo’s requested use. 

  

	5.3.	NewCo shall be permitted to use the ArF Scanner for up to [*****]; provided that should NewCo’s usage requirements change, the Parties shall
negotiate in good faith to accommodate the needs of NewCo’s business. NewCo shall make a request at least two (2) days prior to the date of intended use of the ArF Scanner and Hynix shall notify NewCo within one (1) day of such request (a)
whether NewCo can use ArF Scanner on such requested date and (b) if NewCo cannot use the ArF Scanner on such requested date, the next available time for NewCo’s use; provided, however, that in case of emergency, the Parties shall
mutually consult in good faith and agree to change the applicable reservations to the extent possible to accommodate NewCo’s requested use. 

  

/*****/ = 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. 
  

 7 

	5.4.	NewCo shall be permitted to use the Hynix New Analysis Equipments for the number of hours per week and hours per month as are specified for each piece of equipment on Exhibit H;
provided that should NewCo’s usage requirements change, the Parties shall negotiate in good faith to accommodate the needs of NewCo’s business. NewCo shall make a request at least two (2) days prior to the date of intended use of
the Hynix New Analysis Equipments and Hynix shall notify NewCo within one (1) day of such request (a) whether NewCo can use the Hynix New Analysis Equipments on such requested date and (b) if NewCo cannot use the Hynix New Analysis Equipments on
such requested date, the next available time for NewCo’s use; provided, however, that in case of emergency, the Parties shall mutually consult in good faith and agree to change the applicable reservations to the extent possible to
accommodate NewCo’s requested use. 

  

	5.5.	The right to use any equipment shall include the right to use, with respect to such equipment, any software used for data processing, reservations, and delivery of results of
analysis or measurement and any software embedded in such equipment. 

  
 Article 6. Fees 
  

	6.1.	In consideration for NewCo’s use of Hynix Measurement Equipments B and Hynix Analysis Equipments, and the Hynix’s maintenance and operation service for NewCo Measurement
Equipments and NewCo Analysis Equipments hereunder, NewCo shall pay to Hynix a certain portion of the costs and expenses incurred by Hynix in connection with operating and maintaining the Measurement and Analysis Equipments, which shall consist of
(a) Labor Charge, (b) Asset Charge, (c) Fixed Overhead Charge, (d) Variable Overhead Charge and (e) Part and Repair Charge as provided in Appendix I (see also Appendix I for definitions of the charges set forth above). 

  

	6.2.	The fees per hour for NewCo’s use of the KrF Scanner, ArF Scanner and each piece of equipment consisting of the Hynix New Analysis Equipments shall be calculated in accordance
with the formula provided in Appendix II. 

  

	6.3.	Any fees for the use/services hereunder are set forth in this Article 6 and there are no other fees for the use/services except as set forth in this Article 6. To the extent
applicable, calculations hereunder shall be made by taking into account the AUP. 

  

	6.4.	Notwithstanding anything herein to the contrary but subject to the last sentence of Section 3.7, the Parties acknowledge and agree that it is their mutual intent that the fees for
the use/services hereunder shall be no greater than the actual cost reasonably incurred to provide such use/services. The Parties agree to cooperate in good faith in furtherance of the foregoing, including by adjusting the fees
from time to time if necessary in order to effectuate this intent and by conducting, at the request of NewCo, an audit of the fees in each calendar year during which use/services are provided (at a time within the first six months of the succeeding
calendar year mutually agreed to in good faith) to compare the costs actually incurred to provide the use/services hereunder during such period with the fees paid for such use/services. Hynix may dispute the results of any such audit, provided that
Hynix shall notify NewCo in writing of such disputed results within 30 days of Hynix’s receipt of the results of the audit. In the event of any such dispute, Hynix and NewCo shall attempt to reconcile their 

  

 8 

 differences and any resolution by them as to any disputed amounts shall be final, binding and conclusive
on Hynix and NewCo. If Hynix and NewCo are unable to reach a resolution to such effect of all disputed amounts within 30 days of receipt of Hynix’s written notice of dispute to NewCo, NewCo and Hynix shall submit the amounts remaining in
dispute for resolution to the Independent Accounting Firm, which shall, within 30 days after such submission, determine and report to Hynix and NewCo with respect to the amounts disputed. The findings of the Independent Accounting Firm shall be
final, binding and conclusive on Hynix and NewCo. If the results of any such audit as finally determined indicate that NewCo has, in the aggregate with respect to all costs audited, paid more than the amount otherwise required to have been paid
pursuant to this Agreement, Hynix shall promptly (and in no event later than 30 days from the date of such determination) refund the amount of such overpayment to NewCo. If the results of any such audit as finally determined indicate that NewCo has,
in the aggregate with respect to all costs audited, paid less than the amount otherwise required to have been paid pursuant to this Agreement, NewCo shall promptly (and in no event later than 30 days from the date of such determination) pay the
amount of such underpayment to Hynix. For any individual deficiency or overpayment indicated by the results of any such audit as finally determined, the Party owing the payment shall pay to the other Party, in addition to such payment due, interest
thereon at a rate of eight (8%) percent per annum of such deficiency or overpayment for the period from the date of such deficiency or overpayment until the date finally paid or reimbursed, as the case may be. The total costs involved in any such
audit shall be paid by: (i) NewCo, in the case that the audit demonstrates a deviation in the aggregate with respect to all audited costs of less than 5% from the amount otherwise required to have been paid pursuant to this Agreement, (ii) both
Parties equally, in the case that the audit demonstrates a deviation from 5% to 10% and (iii) Hynix, in the event that the audit demonstrates a deviation greater than 10%. Hynix will use its commercially reasonable efforts to minimize the costs
incurred to provide the use/services hereunder, including managing its part stock reasonably in an effort to avoid excess. The Parties agree that the audit contemplated hereunder shall be conducted only once in each calendar year for all of the
following agreements entered into by and between the Parties and/or their Affiliates as of the date hereof: General Service Supply Agreement, R&D Equipment Utilization Agreement, IT & FA Service Agreement, Taiwan Overseas Sales Services
Agreement, U.S. Overseas Sales Services Agreement, Japan Overseas Sales Services Agreement, U.K. Overseas Sales Services Agreement and Hong Kong Overseas Sales Services Agreement. 
  
 Article 7. Maintenance Activities 
  

	7.1.	During the Term of this Agreement, if Hynix has scheduled or otherwise has planned to undertake inspection, testing, preventive maintenance, corrective maintenance, repairs,
replacement, improvement or other similar activities to all or any part of the Hynix Measurement Equipments B, Hynix Analysis Equipments, Hynix New Analysis Equipments, KrF Scanner and/or ArF Scanner (collectively, the “Maintenance
Activities”), Hynix may, for the duration of such Maintenance Activities interrupt, suspend or curtail NewCo’s use of such Hynix Measurement Equipments B, Hynix Analysis Equipments, Hynix New Analysis Equipments, KrF Scanner and/or ArF

  

 9 

 Scanner to the extent that the Maintenance Activities for the affected part of Hynix Measurement
Equipments B, Hynix Analysis Equipments, Hynix New Analysis Equipments, KrF Scanner and/or ArF Scanner are necessary or advisable. In the event that Hynix is required to perform corrective maintenance, repairs due to malfunction or non-routine
inspection due to a suspected malfunction, Hynix shall give NewCo prior written notice of such activities to the extent reasonably possible. In the event that Hynix proposes to conduct any other Maintenance Activities, Hynix shall give NewCo as much
prior written notice as reasonably possible of such activities, which in any event shall not be less than 30 days prior written notice, and Hynix shall consult with NewCo prior to undertaking or permitting to occur any such Maintenance Activity.
Upon Hynix’s receipt of any notice of any Maintenance Activities by any third party suppliers, Hynix promptly shall provide NewCo written notice thereof and shall consult with NewCo to the extent reasonably possible prior to permitting any such
Maintenance Activities to occur. 
  

	7.2.	If NewCo receives such notice as set forth in Section 7.1, then to the extent that the use of Hynix Measurement Equipments B, Hynix Analysis Equipments, Hynix New Analysis
Equipments, KrF Scanner and/or ArF Scanner during the Maintenance Activities are insufficient to meet NewCo’s requirements for NewCo’s use thereof in accordance with the terms and conditions hereof, Hynix shall (i) discuss in good faith
NewCo’s obtaining alternate sources similar to such equipment as is/are affected for the duration of the Maintenance Activities, (ii) to the extent that Hynix obtains any alternate sources for such use/services and equipment, Hynix shall make
available a pro-rata share of such alternate sources to NewCo, and (iii) if the foregoing are not available or are insufficient to meet NewCo’s requirements, Hynix shall cooperate with NewCo to locate alternate sources for such services and
equipment. To the extent the foregoing alternate sources are provided by Hynix, there shall be no incremental cost or expense to NewCo. To the extent the foregoing alternate sources are provided by third-parties, NewCo shall bear the actual costs of
the services and equipment it uses. 

  
 Article 8.
Coordinating Committee 
  

	8.1.	Within thirty (30) days after the effective date of this Agreement, 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 Hynix and two (2) of which shall be appointed by NewCo. Each Party, upon prior written notice to the other Party, may from time to time remove or replace any member appointed by such Party.

  

	8.2.	Except as the Parties may otherwise agree in writing, the Coordinating Committee shall have the power and 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 18, seek to resolve disputes; and 

  

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

  

 10 

 Article 9. Payment 
  

	9.1.	Hynix shall invoice NewCo on the tenth (10th) day of each calendar month for the fees provided under Article 6 for the immediately preceding calendar month, which invoices shall
specify the use and/or services provided for the applicable month and the amount of fees for such use and/or services calculated in accordance with Article 6. By the twenty-fifth (25th) day of each calendar month so invoiced NewCo shall pay the
invoiced amount and value added tax thereto to Hynix’s designated account by means of a wire transfer in immediately available funds. All payments hereunder shall be made in Korean Won. 

  

	9.2.	If NewCo fails to make any payment due hereunder by the date it is due, NewCo shall pay Hynix, in addition to the amount of such payment due, interest on the outstanding amounts of
the fees at a rate of eight (8%) percent per annum of the outstanding amount, prorated to reflect the pro rata portion of such interest calculated from and including the relevant due date until the date the fees are fully paid.

  

	9.3.	Notwithstanding any dispute on the amount of payment under this Agreement, each Party shall continue to perform its obligations hereunder (including obligations to make payments of
the amounts included on the invoices provided under Section 9.1 which are not disputed in good faith) and be entitled to exercise its rights under this Agreement; provided, however, that if NewCo fails to pay in full the portion of sums invoiced by
Hynix which are not disputed by NewCo in good faith for three (3) calendar months after such sums become due, Hynix may suspend or curtail the performance of its obligations hereunder of the type for which payment was not made until such payment is
made in full. Any invoice amount that remains disputed after thirty (30) days shall be referred to the Coordinating Committee in accordance with Section 18.2. 

  

	9.4.	Hynix shall, at the request by NewCo, provide NewCo with relevant data and records for the determination of Hynix’s compliance with its obligations under this Agreement (other
than with respect to calculation of fees hereunder which will be governed by Section 6.4); provided that NewCo may make no more than one such request per calendar quarter and any such request must be reasonably specific. In this regard, Hynix shall
prepare and maintain proper books and records of all matters pertaining to the use of Hynix Measurement Equipments B, Hynix Analysis Equipments, Hynix New Analysis Equipments, KrF Scanner and ArF Scanner, and services provided by Hynix, under this
Agreement. Subject to the first sentence of this Section 9.4 and Article 19, upon seven (7) days prior written notice, NewCo, or its authorized representatives, may examine during normal business hours, the books, records and documents of Hynix to
the extent necessary for verification of compliance under this Agreement; provided, however, that if Hynix is to provide such books and records on certain equipment to NewCo for NewCo’s examination and photocopying purposes, Hynix
may blackout any information contained in such books and records that relate to Hynix other than information regarding usage time, number of samples or any other information that is required for the determination of Hynix’s compliance with its
obligations under this Agreement. 

  

	9.5.	Notwithstanding anything herein to the contrary, in the event of a bankruptcy filing with respect to NewCo, NewCo shall deposit with Hynix an amount equal to the fees paid by NewCo
during the immediately preceding full calendar month under the terms of this Agreement, against which will be credited fees payable by NewCo over the thirty day 

  

 11 

 period following such deposit. NewCo shall renew such deposit each thirty days in each case by reference
to the fees paid by NewCo 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, NewCo 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 10. Representations, Warranties and Covenants 
  

	10.1.	Each Party hereby represents and warrants to the other Party that all of the statements contained in this Section 10.1 are true and correct with respect to such Party as of the
effective date of this Agreement and at all times thereafter during the Term. 

  

	 	(a)	Organization. Such Party is duly incorporated and validly existing under the laws of Korea and has full power and authority to perform its respective obligations herein.

  

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

  

	 	(c)	Binding Agreement. This Agreement has been duly executed and delivered by such Party and, assuming due and valid authorization, execution and delivery hereof by the other
Party, is a valid and binding obligation of such Party, enforceable against such Party 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)	No Violation of Laws or Agreements. The execution, delivery and performance of this Agreement does not, (i) contravene any provision of the articles of incorporation or
bylaws, or other similar organizational documents, of such Party; or (ii) violate, conflict with, result in a breach of, or constitute a default (or an event which might, with the passage of time or the giving of notice, or both, constitute a
default) under any agreement to which such Party is a party or by which it is bound. 

  

	 	(e)	Governmental Authorizations. Such Party has obtained all required Governmental Authorizations in connection with the performance of the obligations herein.

  

	10.2.	EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT OR IN THE BTA, NEITHER PARTY NOR ANY OTHER PERSON OR ENTITY ACTING ON BEHALF OF SUCH PARTY, MAKES ANY

  

 12 

 REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED (INCLUDING ANY REPRESENTATION OR WARRANTY FOR SUFFICIENCY,
SATISFACTORY RESULT OR FITNESS FOR PARTICULAR PURPOSE WITH RESPECT TO THE SERVICE PROVIDED HEREUNDER). 
  

	10.3.	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.

  
 Article 11. Force Majeure

  

	11.1.	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 and inability to obtain raw materials due to then current market situations; (ii) natural disasters and acts of God, such as violent storms, earthquakes, floods and destruction by lightning; (iii)
the intervention of any governmental authority 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 (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 reasonably possible of such occurrence, describing the nature of
the Event of Force Majeure and the expected duration thereof. Notwithstanding the foregoing, the Party receiving services hereunder shall be under a continuing obligation to make payments for such services which have already been supplied to the
Party prior to the occurrence of an Event of Force Majeure. 

  

	11.2.	If a Party is unable, by reason of an Event of Force Majeure, to perform any of its obligations under this Agreement, then such obligations 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. 

  

	11.3.	Notwithstanding anything to the contrary contained herein, a third party supplier’s failure to meet its obligations in accordance with the applicable third party supplier
agreement shall not constitute an Event of Force Majeure and Hynix shall be liable to NewCo for any breach of this Agreement resulting from such failure; provided that any such liability to NewCo shall be limited to the extent that such third party
supplier’s liability to Hynix is limited under the applicable third party supplier agreement; provided, further, that any such liability to NewCo shall be limited to the amount that Hynix actually recovers from such third party supplier. In the
case of a material breach by a third party supplier, and in the event that NewCo incurs Damages resulting from such breach of the applicable third party supplier agreement material to NewCo, Hynix shall use commercially reasonable efforts to
vigorously pursue all available actions for Damage compensation from any such third party supplier. In the event Hynix receives any compensation for Damages from the third party supplier for any breach, Hynix shall pay to NewCo a pro rata portion of
such actual Damages received from the third party supplier based on the amount of Damages suffered by NewCo relative to the aggregate amount of Damages suffered by 

  

 13 

 both Parties. Each Party shall be responsible for a portion of the reasonable and documented expenses of
any such actions for Damage compensation in proportion to the allocation of any recovery of Damages pursuant to the preceding sentence; provided that the Parties shall cooperate in good faith to minimize such expenses and consult with each other in
advance with respect to the conduct of any such action. 
  

	11.4.	To the extent that the equipment or services affected due to a third party’s failure to meet its obligations under the applicable third party supplier agreement are
insufficient to meet NewCo’s requirements for NewCo’s use thereof in accordance with the terms and conditions hereof, Hynix shall (i) to the extent Hynix has alternative sources available internally, provide such alternate sources for the
affected equipment or services for the duration the equipment or services are affected, (ii) to the extent that Hynix obtains any alternate sources for such equipment or services, Hynix shall make available a pro-rata share of such alternate sources
to NewCo, and (iii) if the foregoing are not available or are insufficient to meet NewCo’s requirements, Hynix shall cooperate with NewCo to locate alternate sources for such equipment or services. To the extent the foregoing alternate sources
are provided by Hynix, there shall be no incremental cost or expense to NewCo. To the extent the foregoing alternate sources are provided by third parties, NewCo shall bear the actual costs of the services it uses. To the extent that any service
which both Parties utilize for their respective businesses remains partially available during an Event of Force Majeure (e.g., Hynix makes some quantity of service available but not the usual amount or Hynix otherwise accesses an alternative source
of some quantity of service), each Party shall receive, to the extent practically possible, equal provision of such service up to the amount it would otherwise receive if there were no Event of Force Majeure. 

  
 Article 12. Termination 
  

	12.1.	Termination. This Agreement may be terminated at any time during the Term of this Agreement as follows: 

  

	 	(a)	by either Party’s serving a written notice thereof to the other Party and 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 breaching Party, or otherwise resolved by the Coordinating Committee, within sixty (60) days after written notice is provided by the non-breaching Party to the breaching Party and
Coordinating Committee; 

  

	 	(b)	by Hynix’s serving sixty (60) days prior written notice thereof to NewCo if NewCo ceases to conduct any Permitted Business (provided that an assignment pursuant to Article 17
shall not trigger the application of this provision in so far as such assignee does not cease to conduct any Permitted Business); or 

  

	 	(c)	by NewCo’s serving a written notice of termination to Hynix, at such time as NewCo has terminated all of Hynix’s obligations to provide the use of equipment and services
hereunder in accordance with Section 2.2. 

  

 14 

	12.2.	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. 

  

	12.3.	Except as provided in this Section 12.3 and Section 12.4, following the termination or expiration of this Agreement all obligations and liabilities of the Parties under or arising
from this Agreement shall cease and be of no effect, and neither Party shall have any liability under or arising from this Agreement as a consequence of the termination or expiration of this Agreement in accordance with Section 12.1 except for fraud
or willful breach of this Agreement. Notwithstanding the foregoing, termination of this Agreement shall be without prejudice to the accrued rights and liabilities of the Parties prior to the termination of this Agreement. 

 

	12.4.	The respective rights and obligations of the Parties under Section 9.4 and Articles 14, 15, 16, 18 and 19 and other Sections which by their nature are intended to extend beyond
termination, shall survive the termination or expiry of this Agreement. 

  
 Article 13. [Intentionally Omitted] 
  
 Article 14. Indemnification 
  

	14.1.	Subject to Article 15 hereof, each Party (the “Indemnifying Party”) shall defend, indemnify and hold harmless the other Party (and its shareholders, partners, members,
directors, officers, employees, agents and representatives) (collectively, the “Indemnified Party”) from and against, and shall pay to the Indemnified Party the amount of any Damages arising from any breach of any representation, warranty,
agreement or covenant made by the Indemnifying Party under this Agreement or the negligence, gross negligence or willful misconduct of the Indemnifying Party. 

  
 Article 15. Limitation on Liability 
  

	15.1.	Notwithstanding anything to the contrary herein, neither Party shall have any liability whatsoever to the other Party, and the other Party shall have no rights or remedies
whatsoever (in each case whether in contract, tort, including negligence, or otherwise), for or in connection with any failure to provide any services or fees for services (as applicable) in accordance with this Agreement to the extent such failure
is attributable to the occurrence of an Event of Force Majeure. 

  

	15.2.	Notwithstanding anything to the contrary, no Party shall be liable to the other Party, whether by way of indemnity or otherwise, for any punitive damages, whether any such damages
arise out of contract, equity, tort (including negligence), strict liability or otherwise, arising out of, or related to, this Agreement and each Party hereby waives, to the fullest extent permitted by law, all rights with respect to the punitive
damages. 

  

	15.3.	Notwithstanding anything to the contrary contained herein, the liability of each Party (the “Breaching Party”) hereunder, for Damages resulting from the Breaching
Party’s breach 

  

 15 

 of this Agreement or its negligence, gross negligence or willful misconduct shall be limited to (a) in
the event that the Breaching Party proves that such breach was the result of the negligence of the Breaching Party and no other reason or, in the case of a tort claim, the Indemnifying Party proves that such Damages resulted from the negligence of
the Indemnifying Party and no other reason the aggregate amount received by the Breaching Party in fees hereunder for the calendar year prior to the year of determination for the use/service affected by such breach and (b) in all other events,
including if the breach was the result of gross negligence, willful misconduct or intentional breach, the maximum amount permitted by Korean law. 
  

	15.4.	If any Indemnified Party is at any time entitled to recover under any third-party policy of insurance (excluding any self-insurance that is not reinsured with a third party), in
respect of any Damages for which indemnification is sought under Article 14, the Indemnified Party shall, at the request of the Indemnifying Party, use its commercially reasonable efforts to enforce such recovery for the benefit of the Indemnifying
Party and, upon recovery under such policy, reduce the amount of Damages for which it is seeking indemnification under Article 14 by the amount actually recovered under the policy (net of and costs, charges and expenses of the Indemnified Party in
connection with such recovery). 

  
 Article 16.
Right of First Refusal 
  
 In the event Hynix wishes to sell or
otherwise dispose of all or any part of the Hynix Equipments, Hynix New Analysis Equipments, KrF Scanner, ArF Scanner or any other equipment that is the subject matter of this Agreement (collectively, the “Used Equipments”) at any time
during the Term, Hynix shall first make an offer for sale of such Used Equipments to NewCo by giving NewCo a written notice setting forth the purchase price and other terms and conditions thereof (“Notice of Sale”). NewCo shall notify
Hynix in writing whether NewCo accepts or rejects such offer made by Hynix in the Notice of Sale within thirty (30) days after the receipt thereof (such thirty-day period, the “Notice Period”). Unless NewCo accepts in writing such offer
made by Hynix in the Notice of Sale prior to the expiration of the Notice Period, Hynix shall be free to sell or otherwise dispose of all or any part of such Used Equipments offered through the Notice of Sale to a third party within thirty (30) days
from the date of expiration of the Notice Period; provided, however, that such sale or disposal to a third party shall not be made under the terms and conditions more favorable than the offer made to NewCo in the Notice of Sale. If Hynix sells or
otherwise disposes of any of such Used Equipments (other than Hynix Measurement Equipments A) to a third party, then, to the extent Hynix replaces such equipment with equipment that is substitutive thereof, NewCo shall have the option to use such
replacement equipment on terms and conditions consistent with the terms and conditions of NewCo’s use of the equipment that was sold or disposed of (with the fees being calculated in accordance with Appendix I or II hereof), and to the extent
Hynix does not replace such equipment, Hynix shall provide NewCo with the use of alternative equipment that is substantially the same as the equipment that was sold or disposed of on terms and conditions consistent with the terms and conditions of
NewCo’s use of the equipment that was sold or disposed of (with the fees being calculated in accordance with Appendix I or II hereof); provided, however, that Hynix shall not be obligated to provide NewCo with the use of such alternative
equipment following the third anniversary of the date hereof if NewCo has rejected the offer made in a Notice of Sale with respect to the applicable Used Equipment. 
  

 16 

 Article 17. Assignment 
  

	17.1.	This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; provided, however, that no Party will assign its
rights or delegate its obligations under this Agreement without the express prior written consent of the other Party, except that (i) NewCo may assign its rights hereunder 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 a sale of NewCo in the form then being conducted by NewCo
substantially as an entirety; (ii) Hynix and NewCo 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, to 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 the 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) NewCo may, upon written notice to Hynix (but without the obligation to obtain the consent of Hynix), assign this Agreement or any of its rights and
obligations under this Agreement to one or more direct or indirect Subsidiaries of Warrant Issuer. 

  

	17.2.	Notwithstanding anything to the contrary contained herein, Hynix may not subcontract the performance of all or any parts of its obligations under this Agreement to any third party
or parties, without the prior written consent of NewCo. 

  
 Article 18. Governing Law; Dispute Resolution 
  

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

  

	18.2.	Each 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 18.2 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 18.3. Notwithstanding the foregoing, Hynix and NewCo shall each continue to perform its obligations under this
Agreement during the pendency of such dispute in accordance with this Agreement. 

  

 17 

	18.3.	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 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 dispute, claims or controversy 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, which is not resolved by the Coordinating Committee
pursuant to Section 18.2 may 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 19. Confidentiality 
  

	19.1.	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 NewCo 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. 

  

	19.2.	The obligation of confidentiality in Section 19.1 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 NewCo 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 

  

 18 

 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 20. Miscellaneous 
  

	20.1.	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. 

  

	20.2.	Extension; Waiver. At any time during the Term, each of Hynix and NewCo 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. 

  

	20.3.	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 Hynix, to:

	
	 Hynix Semiconductor Inc.

	 Hynix Youngdong Building

	 891 Daechi-dong, Gangnam-gu

	 Seoul 135-738, Korea

	 Attention: Mr. O.C. Kwon

	 Facsimile: 82-2-3459-5955

	
	 If to NewCo, to:

	
	 MagnaChip Semiconductor, Ltd.

	 1 Hyangjeong-dong

	 Heungduk-gu

	 Cheongju City

	 Chung Cheong Bok-do, Korea

	 Facsimile: 82-43-270-2134

	 Attention: Dr. Youm Huh

  

 19 

			
	 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.

  

	20.4.	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. 

  

	20.5.	Entirety; 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. 

  

	20.6.	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. 

  

	20.7.	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 hereto expressly stating that such instrument is intended to amend, modify or supplement this Agreement. 

  

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

  

	20.9.	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. 

  

 20 

	20.10.	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. 

  

	20.11.	Relationship of the Parties. Each Party shall perform its obligations hereunder as an independent contractor. This Agreement does not create a fiduciary or agency
relationship between Hynix and NewCo, each of which shall be and at all times remain independent companies for all purposes hereunder. Nothing in this Agreement is intended to make either Party a general or special agent, joint venturer, partner or
employee of the other for any purpose. 

  
 [SIGNATURE
PAGE TO FOLLOW] 
  

 21 

 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.	 	MAGNACHIP SEMICONDUCTOR, LTD.
				
	By:	 	  

	 	By:	 	  

	Name:	 	  

	 	Name:	 	  

	Title:	 	  

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]