Document:

exv10w40

 

Exhibit
10.40

MAGNACHIP SEMICONDUCTOR LLC 

NOTICE OF GRANT OF UNIT OPTION

[Non-US Participants]

The Participant has been granted an option (the “Option”) to purchase certain Common Units of
MagnaChip Semiconductor LLC pursuant to the MagnaChip Semiconductor LLC 2009 Common Unit Plan (the
“Plan”), as follows:

	 	 	 
	Participant:

	 	Heungkyu Kim
	 
	 	 
	Date of Grant:

	 	December 8, 2009
	 
	 	 
	Number of Option Units:

	 	560,000, subject to adjustment as provided by the Option Agreement.
	 
	 	 
	Exercise Price:

	 	US $ 1.16
	 
	 	 
	Initial Vesting Date:

	 	The date one (1) year after the Date of Grant
	 
	 	 
	Option Expiration Date:

	 	The date ten (10) years after the Date of Grant
	 
	 	 
	Local Law:

	 	The laws, rules and regulations of [Name of Country], of which the Participant is a
resident.
	 
	 	 
	Vested Units:

	 	Except as provided in the Option Agreement and provided the Participant’s Service has not
terminated prior to the applicable date, the number of Vested Units (disregarding any resulting
fractional Unit) as of any date is determined by multiplying the Number of Option Units by the
cumulative “Vested Ratio” (not to exceed 1.0) determined as of such date as follows:

	 	 	 	 	 
	 	 	Vested Ratio
	Prior to Initial Vesting Date
	 	 	0.00	 
	 
	 	 	 	 
	On Initial Vesting Date
	 	 	0.34	 
	 
	 	 	 	 
	Plus, on completion of next period of three (3) months
	 	 	0.09	 
	 
	 	 	 	 
	Plus, on completion of each of next three (3) periods of three (3) months
	 	 	0.08	 
	 
	 	 	 	 
	Plus, on completion of next period of three (3) months
	 	 	0.09	 
	 
	 	 	 	 
	Plus, on completion of each of next three (3) periods of three (3) months
	 	 	0.08	 

By their signatures below, the Company and the Participant agree that the Option and the Units that
may be acquired upon the exercise of the Option are governed by this Grant Notice, by the
provisions of the Plan and the Option Agreement, and by the Operating Agreement, all of which are
attached to and made a part of this document. The Participant acknowledges receipt of copies of the
Plan, the Option Agreement and the Operating Agreement, represents that the Participant has read
and is familiar with their provisions, and hereby accepts the Option subject to all of their terms
and conditions.

	 	 	 	 	 
	MAGNACHIP SEMICONDUCTOR LLC	 	PARTICIPANT
	 
	By:

	 	/s/ Sang Park
	 	/s/ Heungkyu Kim
	 
	 	 	 	 
	 

	 	 	 	Signature
	 
	Its:

	 	CEO & Chairman
	 	Dec. 18, 2009
	 
	 	 	 	 
	 

	 	 	 	Date
	Address:

	 	891 Daechi-dong,

Gangnam-gu Seoul, Korea
135-738
	 	 
	 	 	 	 
	 	 	 	Address
	 
	 
	 	 	 	 

			
	ATTACHMENTS:	 	2009 Common Unit Plan, as amended to the Date of Grant; Option Agreement and Exercise
Notice; and Operating Agreementexv10w41

Exhibit
10.41

MAGNACHIP SEMICONDUCTOR LLC

NOTICE OF GRANT OF RESTRICTED UNITS

[Non-US Participants]

The
Participant has been granted an award (the
“Award”) of certain Common Units (the
“Units”) of MagnaChip Semiconductor LLC pursuant to the MagnaChip Semiconductor LLC 2009 Common Unit Plan (the
“Plan”), as follows:

	 	 	 
	Participant:

	 	Heungkyu Kim
	 
	 	 
	Date of Grant:

	 	December 8, 2009
	 
	 	 
	Total Number of Option Units:

	 	280,000, subject to
adjustment as provided by the Restricted Unit Agreement.
	 
	 	 
	Fair Marker Per Unit on Date of Grant:

	 	US $ 0.74
	 
	 	 
	Initial Vesting Date:

	 	The Date of Grant
	 
	 	 
	Local Law:

	 	The laws, rules and regulations of [Name of Country], of which the Participant is a
resident.
	 
	 	 
	Vested Units:

	 	Except as provided in the Restricted Unit Agreement and provided the Participant’s Service has not
terminated prior to the applicable date, the number of Vested Units (disregarding any resulting
fractional Unit) as of any date is determined by multiplying the Total Number of Units by the
cumulative “Vested Ratio” (not to exceed 1.0)
determined as of such date as follows:

	 	 	 	 	 
	 	 	Vested Ratio
	Prior to Initial Vesting Date
	 	 	0.0	 
	 
	 	 	 	 
	On Initial Vesting Date
	 	 	0.34	 
	 
	 	 	 	 
	Plus, on completion of next period of one (1) year
	 	 	0.33	 
	 
	 	 	 	 
	Plus, on completion of next period of one (1) year
	 	 	0.33	 

     By
their signatures below, the Company and the Participant agree that
the Award is governed by this Grant Notice, by the
provisions of the Plan and the Restricted Unit Agreement, and by the Operating Agreement, all of which are
attached to and made a part of this document. The Participant acknowledges receipt of copies of the
Plan, the Restricted Unit Agreement and the Operating Agreement, represents that the Participant has read
and is familiar with their provisions, and hereby accepts the Award subject to all of their terms
and conditions.

	 	 	 	 	 
	MAGNACHIP SEMICONDUCTOR LLC	 	PARTICIPANT
	 
	By:

	 	/s/ Sang Park
	 	/s/ Heungkyu Kim
	 
	 	 	 	 
	 

	 	 	 	Signature
	 
	Its:

	 	CEO & Chairman
	 	Dec. 18, 2009
	 
	 	 	 	 
	 

	 	 	 	Date
	Address:

	 	891 Daechi-dong,

Gangnam-gu Seoul, Korea
135-738
	 	 
	 	 	 	 
	 	 	 	Address
	 
	 
	 	 	 	 

			
	ATTACHMENTS:	 	2009 Common Unit Plan, as amended to the Date of Grant;
Restricted Unit Agreement; Assignment Separate from Certificate; and Operating Agreementexv10w42

Exhibit 10.42

	 	 	 
	 

	 	
	 

	 	891 Daechi-dong, Gangnam-gu Seoul,

135-178 Korea 
Tel: 82-2-3459-3675 
Fax: 82-2-3459-3686 
	 

	 	www.magnachip.com

Confidential

June 20,
2007

Dear Dr. Taejong Lee

     MagnaChip Semiconductor, Ltd. (“MagnaChip”) is pleased to present you with an offer for
employment in the position of VP of Corporate Engineering, reporting to Sang Park, CEO/Chairman of
MagnaChip Semiconductor Ltd. We believe that you have significant potential to make valuable
contributions to MagnaChip, and we hope you will find your employment with us a rewarding
experience.

     You will be based at MagnaChip’s office in Seoul and Cheongju, Korea, but will be expected to
travel as needed within Korea and to other destinations as the job may require. The expected start
date of your employment is September 03, 2007.

     Your annual salary will be KRW 170,000,000 per annum. You will be paid in accordance with
MagnaChip’s normal payroll practices and your compensation will be subject to payroll deductions
and all required withholdings. Annual salary increases will be determined by MagnaChip in
accordance with MagnaChip’s internal policies and procedures. In addition, you will be paid a
sign-on of KRW20,000,000 on the first normal pay day date after your employment begins, provided
that, should you resign for any reason or be terminated for cause at any time prior to completion
of one year of employment with the Company, you must pay the pro-rated amount of sign-on bonus to
the Company. MagnaChip may from time to time in its sole discretion adjust the salary and benefits
paid to you and its other employees in the normal course of operations. Your target annual
incentive is targeted to be 50% of your base salary. The annual incentive will be based on company
performance and attainment of your management objectives under a plan to be established and
approved by the Board of Directors of MagnaChip’s parent company. MagnaChip may from time to time
in its sole discretion adjust the salary and benefits paid to you and its other employees in the
normal course of operations.

     Upon Approval by the Board of Directors of MagnaChip Semiconductor LLC (the “Board), you will
be granted options to purchase 40,000 MagnaChip common units (the “Option”) pursuant to the
MagnaChip Semiconductor LLC Equity Incentive Plan at the exercise price per common unit of the
greater of (i) $3.00 or (ii) the fair market value of a common unit. An installment of 25% of the
common units subject to the option shall become vested and exercisable on the first anniversary of
the commencement date of your employment and 6.25% of the common units subject to the option shall
become vested and exercisable at the end of each three month period thereafter on the same day of
the month as the commencement date (or, if earlier, the last day of such month), subject to your
continuing employment with the Company. Other terms of the option shall be as determined by the
Board, and

 

 

prior to receiving the option you must execute an option agreement in the form as approved by the
Board.

     You
will be eligible to participate in MagnaChip’s employee benefits programs for which you
qualify and as are applicable to other MagnaChip employees of your level based in Korea. In
addition to that, you shall be entitled to the following benefits:

	 	(a)	 	School tuition for children. MagnaChip will reimburse middle and high school
tuition for your two children at a foreign school upon receiving a tuition receipt and
other documentation acceptable to MagnaChip. The reimbursement amount shall not exceed
KRW32,400,000 in total per each year’s reimbursement.
	 
	 	(b)	 	Housing support. MagnaChip will reimburse temporary housing fee in the amount
of up to KRW4,000,000 for your first month of employment upon receiving a receipt
and/or other documentation acceptable to MagnaChip. You will also be provided with
housing allowance in the amount of KRW3,600,000 per month upon receiving a receipt
and/or other documentation acceptable to MagnaChip..
	 
	 	(c)	 	Moving expenses & Others. MagnaChip will pay reasonable, fully justified
moving expenses in the amount of up to KRW8,000,000 upon receiving a receipt and/or
other documentation acceptable to MagnaChip. MagnaChip will also pay one-way airline
tickets from your country origin to Korea in economy class for you, and upon their
relocation to Korea, for your spouse and up to two children upon receiving a receipt
and/or other documentation acceptable to MagnaChip.

     As an
employee of MagnaChip organizations, you will expected to abide by
MagnaChip’s rules
and regulations and sign and comply with MagnaChip’s form employment agreement for employees based
in Korea that includes confidentiality and non-competition provisions. Your employment relationship
with MagnaChip is at-will, although you will be eligible for severance programs as required by
Korean law. You may terminate your employment with MagnaChip at any time and for any reason
whatsoever simply by notifying us, although you agree to provide one month’s notice prior to your
resignation. Likewise, MagnaChip may terminate your employment in accordance with Korean law.

     As an employee in the MagnaChip organization, you will be expected to abide by MagnaChip’s
rules and regulations and sign and comply with MagnaChip’s form employment agreement for employees
who are Korean citizens and based in Korea that includes confidentiality and non-competition
provisions.

     This letter forms the complete and exclusive offer of your employment with MagnaChip. No other
representative has any authority to modify or enter into an agreement or modification, express or
implied, contrary to the foregoing. Any such modification or agreement must be in writing and
signed by Sang Park, Robert Krakauer or Dongjin Kim and must clearly and expressly specify an
intent to change the at-will nature of your employment.

     We look forward to your participation in the future growth of MagnaChip. Please indicate your
acceptance of this offer of employment by signing in the space below. Please fax or e-mail an
executed copy of this letter to me as soon as possible, with the original to follow by mail.

Sincerely,

 

 

	 	 	 	 	 
	 	MAGNACHIP SEMICONDUCTOR, LTD.

 	 
	 	/s/ Sang Park
 	 
	 	Sang Park 	 
	 	CEO/Chairman

MagnaChip Semiconductor, Ltd. 	 
	 

THIS EMPLOYMENT OFFER IS WHOLLY AGREED AND ACCEPTED BY:

	 	 	 	 	 
	Dr. Taejong Lee

 	 	 
	Signature: 	 /s/ Taejong Lee

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