Document:

License Agreement(ModularBCD) dated Mar. 18, 2005-Advanced Analogic Technologies

 Exhibit 10.27 
  
 LICENSE AGREEMENT 
 (ModularBCD) 
  
 DATED March 18, 2005

  
 BETWEEN 
  
 ADVANCED ANALOGIC TECHNOLOGIES INC. 
  
 AND 
  
 MAGNACHIP SEMICONDUCTOR, LTD. 

  
 LICENSE AGREEMENT

 (ModularBCD) 
  
 This agreement (the “Agreement”) is made effective as of March 18, 2005, by and between Advanced Analogic Technologies Inc., a California
corporation with its principal place of business located at 830 E. Arques Ave, Sunnyvale California 94085 (hereafter called “AATI”) and MagnaChip Semiconductor, Ltd. with its principal place of business located at 1,
Hyangjeong-dong, Hungduk-gu, Cheongju-si, Chungbuk, South Korea (hereafter called “MAGNACHIP”). 
  
 RECITALS 
  
 WHEREAS, AATI and/or its affiliates own certain technology related to ModularBCD Technology (as defined below), and 
  
 WHEREAS, MAGNACHIP wishes to obtain a license to certain technology of AATI, and AATI has agreed to license such technology pursuant to the terms and
conditions set forth herein, including a use restriction, and 
  
 WHEREAS, AATI wishes to provide for the manufacture, assembly, test and delivery of certain products (defined below), and MAGNACHIP has agreed to undertake such obligations pursuant to the terms and conditions set forth in the Wafer
Supply Agreement dated June 4, 2002 (“Wafer Agreement”), as those terms and conditions are amended by an Amendment effective on the Effective Date hereof. 
  
 NOW, THEREFORE, the MAGNACHIP and AATI agree as follows: 
  
 AGREEMENT 
  
 1. DEFINITIONS. The following terms will have the meanings attributed thereto, unless otherwise provided herein:

  
 1.1 “AATI Field”
means the design, manufacturing, testing, sale, offer for sale, or distribution of Products, which are using AATI ModularBCD Technology described hereunder. 
  
 1.2 “AATI Improvements” shall have the meaning attributed thereto in Section 3.3. 
  
 1.3 “AATI Intellectual Property”
means those Intellectual Property Rights that AATI owns or has a right to license consistent with the scope of the license hereunder. 
  
 1.4 “AATI Licensed Products” means those AATI Products whose manufacture includes the use of MAGNACHIP Technology.

  
 1.5 “AATI Products”
means those Low-Voltage Power Management Products of AATI, including, but not limited to, those identified on Exhibit A, as may be amended by AATI from time to time. 
  
 1.6 “AATI IC Technology” means the designs, technology and other information
provided by AATI to MAGNACHIP related to ModularBCD Technology and related device and processing under this 

  

 
Agreement. AATI IC Technology includes the processes, methods, devices and apparatus described in the United States and foreign patent and patent
applications listed on Exhibit B along with any improvements, derivatives, continuation patents, foreign filings, continuation in part (CIP) applications, and all work by AATI or its employees related to ModularBCD Technology preceding
said applications (dating back to September 1998) continuing through the term of this Agreement. AATI IC Technology also includes the features, devices, processes, apparatus and methods identified in Exhibit C and protected by the
Patents in Exhibit B. For purposes of clarity and notwithstanding the above definition of AATI IC Technology, AATI IC Technology does not include discrete trench-gated vertical power MOSFETs and AATI’s proprietary TrenchDMOS
Technology used to produce discrete vertical power MOSFETs, circuit designs, packaging technology, the multi-chip combination of TrenchDMOS or discrete transistors with integrated circuits containing ModularBCD Technology or other integrated
circuits, and other related designs, technologies and information. 
  
 1.7 “Basic Semiconductor Technology” means designs, technology and other information used to design, manufacture and test semiconductors, including etching, depositions, diffusion, cleaning,
photolithography, and other semiconductor processes or sequences (such as LOCOS). Basic Semiconductor Technology does not include process architecture or the process integration (and resulting process flow) of an integrated
process such as ModularBCD Technology. It also does not include “specialized” unit process steps such as directionally deposited oxides, chained and non-Gaussian implants, etc. 
  
 1.8 “Battery Management” means a Low-Voltage Power Management Products
comprising any device or solution that manages battery performance, including controls the charging and discharging of batteries, electrochemical cells, and fuel cells. Battery Management includes battery charger circuits, protection of LiIon
or Lithium polymer batteries from potentially damaging overcharged and over-discharged conditions, the multiplexing and sequencing of different batteries in multi-battery systems (e.g. in notebook computers), and voltage clamping to limit the
maximum voltage output from a charger circuit. Battery Management functions typically include sensing the battery’s condition (voltage, temperature, total coulombs) and interrupting or permitting current flow (switching). 
  
 1.9 “Competing Products” means
products that compete with the AATI Products after the date of this Agreement. If any portion of a Product includes or integrates the functions of a Competing Product, then such product is a “Competing Product.” 
  
 1.10 “Confidential
Information” means any information disclosed by either Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) under this Agreement, either directly or
indirectly, in writing, orally or by inspection of tangible objects (including without limitation documents, prototypes, samples and equipment), which is designated as “Confidential,” “Proprietary” or some similar designation.
Information communicated orally or through inspection shall be considered Confidential Information if such information is confirmed in writing as being Confidential Information within a reasonable time after the initial disclosure.
Confidential Information may also include information disclosed to a Disclosing Party by Third Parties. Notwithstanding any designation of “Confidential”, Confidential Information includes the AATI IC Technology. 

 
 1.11 “Effective
Date” means the date at which this Agreement is signed by both Parties. 
  
 1.12 “Facility” means the MAGNACHIP-owned wafer fabrication facility located in Gumi, Korea and Cheong-ju, Korea
or such other MAGNACHIP-owned facility that the Parties may agree upon in writing. 
  

 1.13 “MAGNACHIP Field” means Basic Semiconductor Technology,
along with the design, manufacture, test, and sales of products not related to analog semiconductors, power semiconductors, or the AATI Field (such as memory ICs, digital ICs, displays, sensors, and other non-analog non-power semiconductor
products). 
  
 1.14
“MAGNACHIP Licensed Products” means Non-Competing Products of MAGNACHIP, i.e. Non-Competing Products marketed and sold under a MAGNACHIP-owned brand or sold by MAGNACHIP to a Third Party as wafer sales, die sales or
finished good sales through MAGNACHIP’s foundry services business that include, employ or rely upon AATI IC Technology. 
  
 1.15 “MAGNACHIP Improvements” shall have the meaning attributed thereto in Section 3.3. 
  
 1.16 “MAGNACHIP Intellectual
Property” means those Intellectual Property Rights that MAGNACHIP owns or has a right to license consistent with the scope of the license hereunder. 
  

1.17 “MAGNACHIP Technology” means the Basic Semiconductor Technology, and technology not related to
analog and power semiconductor manufacture such as memory IC and digital IC processes, provided by MAGNACHIP to AATI. 
  
 1.18 “Intellectual Property Rights” means any intellectual property right existing now or during the term of this
Agreement recognized throughout the world, including without limitation copyright, maskwork rights, patent rights, trade secrets and know-how. For the purposes of this Agreement, “Intellectual Property Rights” excludes trademarks,
service marks and domain names. 
  
 1.19
“Improvements” means all copyrightable material, notes, records, drawings, designs, inventions, patents, improvements, developments, discoveries and trade secrets first conceived, made or discovered by a Party
during the period of this Agreement which relate in any manner to, or are derived from, the AATI IC Technology, the MAGNACHIP Technology or Confidential Information licensed or provided hereunder, including any enhancements, modifications or
derivations thereto. 
  
 1.20
“Joint Improvements” shall have the meaning attributed thereto in Section 3.3. 
  
 1.21 “Load Switching and Power Supervision” involves Low-Voltage Power Management Products which
shuts-off or limits loads to save power when the load is not in use (load switching) or to supervise power by sensing when an adequate power supply condition is reached (voltage monitoring as a power good indicator), including the sequencing of
multiple power supplies. Voltage references, along with voltage detectors and microprocessor reset ICs are considered as power supervision type products. Some load switching functions may include slow-turn-on to limit in-rush current (and
over-current) or over-temperature protection to prevent damage during a shorted load condition. 
  
 1.22 “Low-Voltage Power Management Products” means those products that have low- voltage power management
characteristics. For the purpose of this Agreement, “Low-Voltage” shall be defined as semiconductor components rated at 35 volts or less. “Power Management Products” include the following
semiconductor components: (1) Integrated Circuits, (2) Power Integrated Circuits, (3) Discrete Power MOSFETs, (4) Intelligent and Application-Specific Power MOSFETs, and (5) Multi-chip Combinations of ICs and Power MOSFETs which include any Product
controlling the flow of power in the 

  

 
following broadly defined functions: (1) Port Protection, (2) Battery Management, (3) Load Switching & Power Supervision, and/or (4) Voltage Regulation
& DC/DC Conversion.  
  
 1.23
“Other Technology” means all designs, technology and information other than AATI IC Technology are beyond the scope of this Agreement. Other Technology includes, without limitation, TrenchDMOS Technology (as
defined in the License Agreement (TrenchDMOS) between AATI and MAGNACHIP of even date with this Agreement. 
  
 1.24 “Port Protection” means Low-Voltage Power Management Products having functions that include
limiting current, clamping voltage, providing ESD protection, facilitating over-temperature protection, and preventing operation during under-voltage or shorted-load conditions. Port Protection includes protecting any input or output pin (or
connector) from damage, especially during the connection or disconnection of components while power is available at the connector (hot plugging) such as PC Cards (PCMCIA), Universal Serial Bus (USB), IEEE1394 (FireWire), Bluetooth, camera modules,
external peripherals, and PCB (printed circuit board) hot plugging. Port Protection may also include protocol-specific functions such as sensing of the port condition, power supply voltage sequencing, noise suppression between loads, and
in-rush induced noise spikes. Port Protection may also include supplying power to a port (such as USB on-the-go) or by driving an external load (such as a speaker in a class D audio output). 
  
 1.25 “ModularBCD Technology” means
that technology related to the fabrication of electronic devices and semiconductor integrated circuits capable of monolithically integrating fully-isolated devices without the need for epitaxial layers or high-thermal-budget processing (including
long or high-temperature diffusions, deep diffusions, or any processes that substantially redistribute dopant profiles from their as-implanted distributions through thermal diffusion). ModularBCD Technology is distinguished by its
extensive use of high-energy ion implantation methods (including multi-energy chained-implants) to form and isolate any and various combinations of electronic devices including N-channel and P-channel MOSFETs (i.e. CMOS), NPN and PNP bipolar
transistors (i.e. complementary bipolars), DMOS (double-junction) transistors, lateral and quasi-vertical trench-gated power MOSFET devices, along with on-chip passives (such as high-sheet-resistance resistors and poly-to-poly capacitors).
Isolation of components is achieved using deeply-implanted junctions without requiring epitaxy, isolation diffusions, trench isolation, or SOI (silicon-on-insulator) materials. ModularBCD Technology can also be characterized by its
multi-voltage capability whereby components and circuitry operating at different voltages can be integrated and isolated with little or no interaction among the differing voltage components, and with no substantial area penalty for mixing
voltages within the integrated circuit. ModularBCD Technology includes but is not limited to the processes, methods, devices and apparatus described in United States and foreign Patent and Patent applications listed in Exhibit B
along with any improvements, derivatives, continuation patents, foreign filings, continuation in part (CIP) applications, and all work by AATI or its employees related to ModularBCD Technology preceding said applications (dating back to September
1998) continuing through the term of this Agreement. ModularBCD Technology features includes but is not limited to the features, device structures, apparatus and fabrication methods listed in Exhibit C and protected by the
Patents in Exhibit B. 
  
 1.26
“Net Sales” means the gross selling die or wafer price (depending on how such is sold) invoiced by MAGNACHIP, its affiliates and authorized manufacturers on sales or other dispositions of MAGNACHIP Licensed Products, less the
following items to the extent they are included in such gross revenues and separately stated on the invoice: (i) normal and customary rebates, refunds and discounts actually given by seller, (ii) insurance, transportation and other delivery charges
actually paid by seller, (iii) sales, excise, value-added and other taxes, (iv) testing and packaging costs and (v) wafer thinning, and other 

  

 
outside expenses incurred in manufacturing, but not included in the Projected Wafer Costs. Sales between MAGNACHIP, its affiliates and authorized
manufacturers shall not be included in Net Sales (but sales or other dispositions by MAGNACHIP, its affiliates and authorized manufacturers to third parties shall be counted as Net Sales). If any MAGNACHIP Licensed Products are sold or transferred
in whole or in part for consideration other than cash, Net Sales shall include the fair market value of such MAGNACHIP Licensed Product. For purposes of this definition of Net Sales, “authorized manufacturer” means any entity (other
than a MAGNACHIP affiliate) that manufacturers (including any assembly and packaging of MAGNACHIP Licensed Products) and sells MAGNACHIP Licensed Products under authority, directly or indirectly, from MAGNACHIP. 
  
 1.27 “Non-Competing
Products” means Products that either (i) Operate above 35V, or (ii) Do NOT perform Power Management functions (namely Port Protection, Load Switching & Power Supervision, Battery Management, or Voltage Regulation & DC/DC
Conversion). Specific examples of Non-Competitive Products are listed in Exhibit D. 
  
 1.28 “Party” means each of AATI and MAGNACHIP (and collectively “Parties” means both MAGNACHIP
and AATI). The term Party (whether referred to as a “Party” or “Parties” or “AATI” or “MAGNACHIP”) does not include any affiliates of such Party except for wholly owned subsidiaries, unless expressly agreed
upon in writing by both Parties. In addition, the terms Party, AATI, MAGNACHIP and Parties shall not include any assignees or successors in interest except as provided for under Section 12.3. 
  
 1.29 “Products” means
semiconductor devices; integrated circuits; discrete transistors; or semiconductor components; whether in wafer form or separated into individual dice (chips), whether assembled into packages, modules, chip-scale packages, bumped, or otherwise
unassembled, whether tested or untested. Products include both Competing Products and Non-Competing Products. 
  
 1.30 “Release-to-Design (RTD) Date” means the date when IC circuit design using ModularBCD
Technology can commence. The RTD Date requires the completion of working test devices and the extraction of SPICE simulation models. Thereafter design of the first integrated circuit product can commence. 
  
 1.31 “Release-to-Manufacturing (RTM)
Date” means the date when the first integrated circuit Product using ModularBCD Technology is successfully qualified. The RTM Date requires the successful fabrication and burn-in qualification of three (3) wafer runs of said
Product. Thereafter both Product and ModularBCD Technology are qualified and manufacturing production can commence. 
  
 1.32 “Third Party” means any company, corporation, partnership, person or commercial entity other
than a Party. 
  
 1.33
“Voltage Regulation & DC/DC Conversion” means Low-Voltage Power Management Products that regulate voltage (or in some cases current) by linear (i.e. linear regulators or LDO’s), switched capacitive (i.e. charge pumps),
and switched inductor (i.e. switching or PWM regulator) methods. The input voltage is generally stepped up and/or down in voltage by the converter circuitry then the output is regulated by some sort of feedback to produce constant output voltage (or
in some cases constant output current). Linear regulators and charge pumps need external capacitors while switching regulators also require one or more inductors. Voltage Regulation applications include regulators for cell phones, CPUs, chip sets,
displays, RF ICs, DSPs, memory, data busses, whole systems, and more. Constant current applications include LED drivers for portable electronics display backlights. 
  

 1.34 “Projected Wafer Cost” means the estimated cost of a
wafer, including the substrate, but not including back grind or project costs. This will also be the same cost that AATI will pay directly for said wafers from MAGNACHIP. The projected wafer costs shall be mutually agreed upon by both parties and
both parties agree to revisit the projected wafer cost on an annual basis in the future. 
  
 1.35 “Customer” means any third party purchaser of products under this Agreement who is not an affiliate,
parent company or subsidiary of MAGNACHIP or AATI. 
  
 2.
LICENSE 
  
 2.1
License by AATI. 
  
 (a)
Subject to the terms and conditions set forth in this Agreement, AATI hereby grants and agrees to grant to MAGNACHIP, and MAGNACHIP accepts, the following license: 
  
 (i) a non-exclusive and non-transferable (except pursuant to Section 12.3), license under the
AATI Intellectual Property to: 
  
 (1) make at
the Facility (but not have made elsewhere), design, develop, offer to sell, sell, use, import, and otherwise dispose of the MAGNACHIP Licensed Products; 
  
 (2) practice, at the Facility, any process or method involved in the manufacture or use of MAGNACHIP Licensed Products; and

  
 (3) to make, use and have made any
manufacturing apparatus involved in the manufacture or use of MAGNACHIP Licensed Products. 
  
 (ii) a non-exclusive nontransferable (except pursuant to Section 12.3) license under the AATI Intellectual Property to use
the AATI IC Technology for the sole purpose of manufacturing and repairing AATI Products, at the Facility, for distribution to AATI. 
  
 (iii) a non-exclusive and non-transferable (except pursuant to Section 12.3), license on a world-wide basis under the AATI
Intellectual Property to use, reproduce modify and make derivative works of the copyrightable materials of the AATI IC Technology solely for use in connection with the exercise of the license granted in Section 2.1(a)(i) and (ii).

  
 (b) MAGNACHIP Licensed Products shall be
royalty-bearing in accordance with Section 5. 
  
 (c) MAGNACHIP shall have no license under the AATI Intellectual Property to supply AATI Products or Competing Products to any party other than AATI without AATI’s prior written approval except as provided for in Section 2.3.
Further, for clarity and notwithstanding anything to the contrary set forth in this Agreement, to the extent (i) a MAGNACHIP License Product includes or relies upon both AATI IC Technology and Other Technology, or (ii) the practice of any rights
granted under this Section 2.1 infringes or misappropriates any AATI Intellectual Property due to such Other Technology, then (iii) the use of the Other Technology shall not be considered licensed under this Agreement, but shall instead
require a 

  

 
separate license from AATI (which AATI may grant or withhold in its sole discretion). The parties acknowledge that AATI and MAGNACHIP have executed a
separate License Agreement (TrenchDMOS) concurrently with this Agreement. 
  
 (d) MAGNACHIP shall have the right, upon prior approval of AATI in writing, to sublicense to Third Parties its right under Section 2.1(a). Except as expressly provided in this Section 2.1,
MAGNACHIP shall have no right to sublicense the rights granted in this Section 2.1. 
  
 2.2 License by MAGNACHIP: 
  

(a) Subject to the terms and conditions set forth in this Agreement, MAGNACHIP hereby grants and agrees to grant to AATI, and AATI
accepts, a non-exclusive, irrevocable, royalty-free, fully paid-up and non-transferable (except pursuant to Section 12.3 , and, under no circumstances, to any other manufacturer of the Products apart from MAGNACHIP), and only for the Term of
this Agreement, license on a world-wide basis under the MAGNACHIP Intellectual Property to: 
  
 (i) make and have made AATI Licensed Products solely in the Facility, 
  
 (ii) design, develop, offer to sell, sell, use, import and otherwise dispose of AATI Licensed Products made
or to be made in the Facility, 
  
 (iii)
practice, solely within the Facility, any process or method involved in the manufacture of the AATI Licensed Products, 
  
 (iv) to practice any process or method involved in the use of the AATI Licensed Products made in the Facility, and 
  
 (v) make and have made any manufacturing apparatus
involved in the manufacture or use of AATI Licensed Products that incorporates or is based upon MAGNACHIP Technology and to use such apparatus exclusively at the Facility. 
  
 2.3 Competing Products. In no event shall MAGNACHIP utilize any AATI IC Technology in
connection with the design, manufacturing, distribution or sale of any Competing Product without the prior written permission of AATI. MAGNACHIP agrees to provide AATI at least thirty (30) days prior written notice prior to MAGNACHIP’s
manufacture, distribution or sale (or assisting others with regard to the same) of any Competing Product. At no time my AATI utilize MAGNACHIP Licensed Products or MAGNACHIP Intellectual property in connection with the design or manufacturing of
AATI Products or AATI Licensed Products outside of MAGNACHIP’ Facility without MAGNACHIP’ expressed written approval. 
  
 3. OWNERSHIP AND RESERVATION 
  
 3.1 By AATI. Subject to the rights granted to or retained by MAGNACHIP under Sections 2, 3.2 and
3.3, the Parties acknowledge and agree that as between the Parties, all title to and ownership of all AATI Intellectual Property and AATI IC Technology not expressly granted herein shall remain the sole and exclusive property of AATI. Nothing
herein shall be construed as granting MAGNACHIP any ownership rights in the AATI Intellectual Property and AATI IC Technology. AATI grants no rights, license or title to its technology beyond the scope of this Agreement, unless otherwise agreed to
in writing by both parties. 
  

 3.2 By MAGNACHIP: Subject to the rights granted to or retained by
AATI under Sections 2, 3.1 and 3.3, the Parties acknowledge and agree that as between the Parties, all title to and ownership of all MAGNACHIP Technology and MAGNACHIP Intellectual Property not expressly granted herein
shall remain the sole and exclusive property of MAGNACHIP. Nothing herein shall be construed as granting AATI any ownership rights in the MAGNACHIP Intellectual Property and MAGNACHIP Technology. MAGNACHIP grants no rights, license, or title to its
technology beyond the scope of this Agreement, unless otherwise agreed to in writing by both parties. 
  
 3.3 Improvements. With respect to any Improvements, ownership shall be allocated as follows: 
  
 (a) AATI Improvements. All Improvements to AATI IC
Technology that are created or conceived solely by AATI shall be solely owned by AATI (the “AATI Improvements”). AATI shall own all right, title, and interest in the AATI Improvements and all Intellectual Property therein (excluding
MAGNACHIP’ rights in and ownership of any Joint Improvement under Section 3.3(c) below). AATI shall have the exclusive right to apply for or register any patents, mask work rights, copyrights, and such other proprietary protections with respect
thereto. Nothing herein shall be construed as granting MAGNACHIP any ownership rights in the AATI Intellectual Property and AATI IC Technology. AATI grants no rights, license or title to such technology and/or Intellectual Property outside the scope
of this Agreement. 
  
 (b) MAGNACHIP
Improvements: All Improvements to MAGNACHIP Technology that are created or conceived solely by MAGNACHIP shall be solely owned by MAGNACHIP (the “MAGNACHIP Improvements”). MAGNACHIP shall own all right, title, and interest in
the MAGNACHIP Improvements, and all Intellectual Property therein (excluding AATI’s rights in and ownership of any Joint Improvement under Section 3.3(c) below). MAGNACHIP shall have the exclusive right to apply for or register any patents,
mask work rights, copyrights, and such other proprietary protections with respect thereto. Nothing herein shall be construed as granting AATI any ownership rights in the MAGNACHIP Intellectual Property and MAGNACHIP Technology. MAGNACHIP grants no
rights, license or title to such technology and/or Intellectual Property outside the scope of this Agreement. 
  
 (c) Joint Improvements. Any Improvement which is jointly created or conceived by the Parties pursuant to this Agreement shall:

  
 (i) if created or conceived as an
Improvement to AATI IC Technology as a result of the licenses granted to MAGNACHIP in Section 2 or access to the AATI IC Technology or AATI Confidential Information, be considered: 
  
 (1) a “Joint Improvement” under this Section 3.3(c), if falling outside the AATI
Field; or 
  
 (2) an “AATI
Improvement” under Section 3.3(a), if falling within the AATI Field; and 
  

 (ii) if created or conceived as an Improvement to MAGNACHIP Technology as a result of
the licenses granted to AATI in Section 2 or access to the MAGNACHIP Technology or MAGNACHIP Confidential Information, be considered: 
  
 (1) a “Joint Improvement” under this Section 3.3(c), if falling outside the MAGNACHIP Field; or 
  
 (2) a “MAGNACHIP Improvement” under
Section 3.3(b), if falling within the MAGNACHIP Field. 
  
 (iii) The Parties shall cooperate with each other in obtaining and securing all possible United States and foreign rights to the Joint Improvements and enforcing such rights. The Parties agree to meet and confer prior
to any public dissemination, use or sale of Joint Improvement in order to ensure that any related patent applications have been filed prior to such event, and shall not make such dissemination, use or sale of Joint Improvement until related patent
applications have been filed. The Parties shall share equally in the costs of obtaining Joint Improvement rights which are jointly owned, including but not limited to the costs of preparing, filing and prosecuting applications and patent maintenance
fees. If a Party determines that it does not want to pursue or continue to pursue obtaining a particular Joint Improvement right which otherwise would be jointly owned, and the other Party elects to do so (the “electing Party”), the cost
related to that particular Joint Improvement right shall be borne solely by the electing Party and the electing Party shall have sole and full ownership of such Joint Improvement right, including any derivatives, continuations, divisions, reissues
and reexaminations of that Joint Improvement right. 
  
 (iv) MAGNACHIP hereby irrevocably transfers, conveys and assigns to AATI all of its right, title, and interest in any Improvements described in Section 3.3(c)(i)(B) (AATI Improvement). MAGNACHIP shall execute such documents, render such
assistance, and take such other action as AATI may reasonably request, at AATI’s expense, to apply for, register, perfect, confirm, and protect AATI rights to such Improvements, and all Intellectual Property therein. AATI hereby irrevocably
transfers, conveys and assigns to MAGNACHIP all of its right, title, and interest in any Improvements described in Section 3.3(c)(ii)(B) (MAGNACHIP Improvement). AATI shall execute such documents, render such assistance, and take such other action
as MAGNACHIP may reasonably request, at MAGNACHIP’s expense, to apply for, register, perfect, confirm, and protect MAGNACHIP’s rights to such Improvements, and all Intellectual Property therein. 
  
 (v) MAGNACHIP and AATI shall each have the right to exploit
all Joint Improvements (that are not AATI Improvements or MAGNACHIP Improvements) without being required any additional payment to the other, provided however, in the event a Party refuses to cooperate and pay costs related to the Joint
Improvement under Section 3(c)(iii), such Party shall have no rights to use or exploit such Joint Improvement under the terms of this Agreement. 
  
 (d) Independently Developed. Notwithstanding the above, to the extent that any Improvements is solely created by a Party
under this Agreement, without reference or use of the other Party’s Technology, Intellectual Property or Confidential Information (as defined below), then such Party shall exclusively own such Improvements. 
  
 3.4 Waiver of Moral Rights. Each party
hereby waives any and all “moral rights,” meaning any right to identification of authorship or limitation on subsequent modification that a party (or its employees, agents or consultants) has or may have in the other party’s
Improvements, to the extent recognized by applicable law consistent with Berne Convention, art. 6bis. 
  

 3.5 Attorney in Fact. Each Party assigning any rights under Section
3 hereunder (the “Assignor”) agrees that if the other Party (the “Assignee”) is unable because of Assignor’s unavailability, dissolution or incapacity, or for any other reason, to secure Assignor’s
signature to apply for or to pursue any application for any United States or foreign patents or mask work or copyright registrations covering the inventions assigned to Assignee above, then Assignor hereby irrevocably designates and appoints the
company and its duly authorized officers and agents as Assignor’s agent and attorney in fact, to act for and in Assignor’s behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further
the prosecution and issuance of patents, copyright and mask work registrations thereon with the same legal force and effect as if executed by Assignor. This power of attorney is deemed coupled with an interest and is irrevocable. 
  
 3.6 Non-Exclusive Arrangement. Nothing
in this Agreement shall be construed to limit AATI’s rights to manufacture, distribute or take any other action with respect to the AATI Products, AATI IC Technology, AATI Improvements or AATI Confidential Information or to authorize any other
persons to do any of the foregoing except as it relates to MAGNACHIP Technology or Improvements to MAGNACHIP Technology pursuant to Section 3.3. Likewise nothing in this agreement shall be construed to limit MAGNACHIP’s rights to
manufacture, distribute or take any other action with respect to the MAGNACHIP Products, MAGNACHIP Technology, MAGNACHIP Improvements or MAGNACHIP Confidential Information or to authorize any other persons to do any of the foregoing, except as it
relates to AATI IC Technology or Improvements to AATI IC Technology pursuant to Section 3.3. 
  
 4. TECHNOLOGY DELIVERY & IMPLEMENTATION. 
  
 4.1 AATI Technology. AATI will deliver to MAGNACHIP the AATI IC Technology
promptly after the Effective Date in a form that is mutually acceptable to both Parties. AATI deliverables to MAGNACHIP are outlined in Exhibit E. Thereafter, AATI may (but is not obligated to) supplement the AATI IC Technology.

  
 4.2 MAGNACHIP
Technology: Upon the recommendation of MAGNACHIP or upon agreement of both Parties, MAGNACHIP will deliver to AATI the MAGNACHIP Technology listed in Exhibit F that may be applicable and useful in adapting and
implementing the AATI IC Technology in said Facility. It is understood by both Parties that the applicability of such MAGNACHIP Technology to AATI IC Technology Implementation may vary by Facility. Thereafter, as agreed upon by both Parties,
certain processing steps, methods, or features in the AATI IC Technology (such as unit process steps in the ModularBCD Technology process flow) may be adapted to incorporate MAGNACHIP Technology or variants thereof. MAGNACHIP may (but is not
obligated to) supplement the MAGNACHIP Technology at a later date. 
  
 4.3 AATI IC Technology Implementation. Both Parties agree to implement with commercially reasonable effort, the AATI IC Technology in said Facility in accordance with the procedures for
AATI IC Technology Implementation as described in Exhibit G. 
  
 (i) Adapting AATI IC Technology for Facility. In the event that AATI IC Technology is adapted or modified to best match or fit said
Facility by utilizing MAGNACHIP Technology in certain steps or processes, such steps or techniques that constitute MAGNACHIP Technology shall remain the property of MAGNACHIP. Those portions of the AATI IC Technology not using MAGNACHIP Technology
along with the integrated process flow of ModularBCD Technology constitute AATI IC Technology and shall remain the property of AATI. 
  

 (ii) Initial AATI IC Technology Implementation. The initial implementation of AATI
IC Technology in said Facility does NOT constitute an Improvement to AATI IC Technology. 
  
 (iii) Initial AATI IC Technology Implementation Milestones. Both Parties will use commercially reasonable efforts to meet the
milestones of the Initial AATI IC Technology Implementation including efforts to meet the objective Release-to-Design (RTD) Date, and the Release-to-Manufacturing (RTM) Date. 
  
 5. ROYALTIES AND PAYMENT TERMS. 
  
 5.1 Royalty. 
  
 (a) MAGNACHIP shall pay [*****] royalty for Products its
produces for and sells to AATI (or AATI’s affiliate as designated in writing by contract from AATI). AATI’s wafer price from MAGNACHIP is covered under the AATI MAGNACHIP supply agreement and is not covered by this Agreement. 

 
 (b) In the case of Non-Competing Products, MAGNACHIP
shall pay AATI [*****] royalty of Net Sales of all wafers produced using or incorporating the AATI Intellectual Property licensed herein (such MAGNACHIP payment to be offset by any payment due from AATI pursuant to Section 5.4 below); provided,
however, that the Parties agree that the foregoing royalty rate is based on a presumption of a [*****] withholding tax rate as of the Effective Date, and so the Parties agree to negotiate in good faith an increase or decrease in such royalty rate at
any time the withholding tax rate changes after the Effective Date. Customer shall be responsible for its own designs or pay for AATI’s design with a release to AATI. Customer and/or MagnaChip shall be responsible for the qualification, orders,
shipping logistics and quality. 
  
 (c) In the
case of Competing Products, MAGNACHIP has no license under this Agreement to sell Competing Products to customers other than AATI (and AATI’s affiliates). In the event that AATI has provided said customer with a license to have made, purchase,
promote and sell Competing Products, however, MAGNACHIP may, to the extent it is a qualified manufacturer manufacture Competing Products for such licensee, to the extent authorized by AATI. In such instances, MAGNACHIP shall pay AATI [*****] of the
difference between the Net Sales of a wafer produced using or incorporating the AATI Intellectual Property licensed herein, and the mutually agreed upon “Projected Wafer Cost” (such MAGNACHIP payment to be offset by
any payment due from AATI pursuant to Section 5.4 below). AATI reserves the right to charge additional consideration directly to such customers (as opposed to MAGNACHIP) for such Competing Products. In such cases, (1) MAGNACHIP makes no
representation to AATI with respect to the qualification and product quality; (2) AATI, at its election, may choose to assist such customers with respect to qualification and product quality; and (3) as between AATI and MAGNACHIP. MAGNACHIP shall be
responsible for shipping logistics, orders and process quality of wafers. 
  
 (d) Both parties shall negotiate a mutually agreeable new cost price. In any case, both parties agree that they will review the pricing structure hereunder on an annual basis to ensure the pricing structure is
mutually agreeable, and adjust such accordingly. 
  
 5.2 Payment. Within 30 days following the end of each calendar quarter, MAGNACHIP and AATI shall pay their respective royalty payments on invoices paid by the third party in U.S. Dollars and shall include a report
sufficient to show the basis for calculation of the royalty payments made hereunder, including without limitation, quantity and identification of all Competing and Non-Competing Products 

  

 [*****] - 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. 

 
(“Report”). Upon AATI approval, in lieu of payment on a quarterly basis MAGNACHIP may pay such outstanding royalties by issuing a credit
against outstanding AATI invoices or toward new wafer starts for Products from MAGNACHIP. 
  
 5.3 Records and Audit. Each party shall retain records and supporting documentation sufficient to document the fee
payable under this Agreement in any particular quarter in which this Agreement is in effect for at least three years following the end of such quarter and its compliance with Section 5.2. Upon prior reasonable written notice of no less than
sixty (60) days by one party, the other party shall provide to a nationally recognized independent public accounting firm (the “Auditors”) designated in writing by that party access during normal business hours to the audited
party’s personnel, outside accountants and data and records maintained in connection with this Agreement, in each case to the extent necessary or appropriate for the purpose of determining whether (i) calculations of the royalties payable under
this Agreement are accurate and in accordance with this Agreement and/or (ii) MAGNACHIP has offered most favorable pricing to AATI in accordance with Section 5.2 (an “Audit”). Audits will be conducted no more frequently than
once per calendar year. Each party agrees to use commercially reasonable efforts to assist such Auditors in connection with such Audits. Any such Audits shall be conducted at the requesting party’s sole cost and expense. 
  
 5.4 Taxes. Each Party shall bear any
and all taxes and other charges incurred by or levied on it by its own country in connection with this Agreement; provided, however, that AATI shall bear fifty percent (50%) of any withholding or similar tax for foreign payments that is levied by
the Korean Government upon any amounts due from MAGNACHIP to AATI under this Agreement, and MAGNACHIP is entitled to offset such AATI payment obligation from any amounts actually paid by MAGNACHIP to AATI under this Agreement, including but not
limited to amounts due pursuant to Sections 5.1(b) and 5.1(c) above. MAGNACHIP will furnish AATI with each tax receipt issued by the Korean taxing authority to assist AATI in obtaining the credit in the United States. 
  
 6. WARRANTY AND DISCLAIMER. 
  
 6.1 General. Each Party
represents and warrants to the other that: 
  
 (e) it has all requisite corporate power and authority to enter into this Agreement and to carry out the transactions contemplated by this Agreement; and 
  
 (f) the execution, delivery and performance of this Agreement and the consummation of the transactions
contemplated by this Agreement have been duly authorized by all requisite corporate action on the part of such Party 
  
 6.2 EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS SECTION 6, NEITHER PARTY MAKES ANY OTHER WARRANTIES WITH
RESPECT TO THE TECHNOLOGY AND INTELLECTUAL PROPERTY RIGHTS LICENSED HEREUNDER, WHETHER EXPRESSED OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. 
  

 7. TERM AND TERMINATION OF AGREEMENT. 
  
 7.1 Term. This Agreement shall have an
initial term of three (3) years but shall be automatically renewed thereafter (and after each subsequent renewal term) for a renewal term of one year unless, at least sixty (60) days prior to the date of any such renewal, either Party hereto shall
have given notice in writing to the other of its intention to terminate the Agreement. This Agreement shall thereafter be automatically terminated at the end of the term during which such notice is given. 
  
 7.2 Termination for Default. Should
either Party materially default in the performance of any term or condition of this Agreement (a “Default”), in addition to all other legal rights and remedies, the other Party may terminate this Agreement by giving thirty (30) days
written notice of said Default unless such Default is corrected within the notice period. 
  
 7.3 Termination for Bankruptcy: Either Party may terminate this Agreement by written notice in the event that the
other Party makes an assignment for this benefit of creditors, or admits in writing inability to pay debts as they become due; or a Trustee or receiver for any substantial part of its assets is appointed by any court; or a proceeding is instituted
under a provision of the Federal Bankruptcy Act by or against the other Party and is acquiesced in or is not dismissed within 60 days or results in an adjudication in bankruptcy. An assignment by AATI of all or part of its rights to payment
hereunder as part of a working capital financing shall not be deemed cause for termination under this paragraph. 
  
 7.4 Effect of Termination. Upon termination or expiration of this Agreement for any reason, all licenses shall immediately
terminate. Each Party shall return the Confidential Information of the other Party within thirty (30) days after the effective date of such termination or expiration. In addition Sections 1, 3, 5.3, 6, 7, 8, 9, 10, 11 and 12 shall survive any
expiration or termination of this Agreement. 
  
 8.
INTELLECTUAL PROPERTY RIGHTS INDEMNITY. 
  
 8.1 By MAGNACHIP:  
  
 (a) MAGNACHIP will defend or settle, at its expense, all claims, proceedings and/or suits brought by Third Parties against AATI, its Affiliates (including their directors, officers, and employees) and customers
alleging that the MAGNACHIP Technology as provided by MAGNACHIP to AATI hereunder infringes or violates any patent, copyright, trade secret or other intellectual property right (herein “Infringement Claim”) and will
indemnify AATI from and pay all litigation costs, reasonable attorney’s fees, settlement payments (subject to reasonable approval by MAGNACHIP) and damages awarded by a court having jurisdiction over such Infringement Claim with respect to any
Infringement Claim; and provided that MAGNACHIP shall be relieved of its obligations under this Section 8.1 unless AATI promptly notifies MAGNACHIP in writing of any such Infringement Claim and gives MAGNACHIP sole control, full
authority, information and assistance (at MAGNACHIP’s expense) for the defense or settlement of such Infringement Claim. 
  
 (b) Without limiting its obligations under Section 8.1(a), when notified of an action or motion that seeks to restrict the use, sale
and/or distribution of any MAGNACHIP Technology hereunder (or part thereof), MAGNACHIP may but is not required nor obligated to, at its option and expense, (1) obtain the right for AATI the right to use the MAGNACHIP Technology as licensed
hereunder, (2) substitute other functionally equivalent technology that does not infringe, or (3) modify such MAGNACHIP Technology so that it no longer infringes. 
  

 (c) Notwithstanding any provision to the contrary, the indemnification obligations in
this Section 8.1 shall not be applicable to the extent an Infringement Claim arises from (1) use of the MAGNACHIP Technology in violation of the license terms herein, (2) the modification of any MAGNACHIP Technology by AATI, or (3) a combination of
the MAGNACHIP Technology with other technology not provided by MAGNACHIP. THE FOREGOING SECTION 8.1 STATES THE SOLE LIABILITY OF MAGNACHIP, AND THE SOLE REMEDY OF AATI, WITH RESPECT TO INFRINGEMENT OR MISAPPROPRIATION OF ANY PATENT, COPYRIGHT, TRADE
SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT BY THE MAGNACHIP TECHNOLOGY OR MAGNACHIP INTELLECTUAL PROPERTY UNDER THIS AGREEMENT. 
  
 8.2 By AATI. 
  
 (a) AATI will defend or settle, at its expense, all claims, proceedings and/or suits brought by Third Parties against MAGNACHIP, its
Affiliates (including their directors, officers, and employees) alleging that AATI IC Technology as provided by AATI to MAGNACHIP hereunder infringes or violates any patent, copyright, trade secret or other intellectual property right (herein
“Claim”) and will indemnify MAGNACHIP from and pay all litigation costs, reasonable attorney’s fees, settlement payments (subject to AATI’s reasonable approval) and damages awarded by a court having
jurisdiction over such Claim with respect to any such Claim; and provided that AATI shall be relieved of its obligations under this Section 8.2 unless MAGNACHIP promptly notifies AATI in writing of any such Claim and gives AATI sole
control, full authority, information and assistance (at AATI’s expense) for the defense or settlement of such Claim. 
  
 (b) Without limiting its obligations under Section 8.2(a), when notified of an action or motion that seeks to restrict the use, sale
and/or distribution of any AATI IC Technology hereunder (or part thereof), AATI may but is not required or obligated to, at its option and expense, (1) obtain the right for MAGNACHIP the right to use the AATI IC Technology licensed hereunder, (2)
substitute other functionally equivalent technology that does not infringe, or (3) modify such technology so that it no longer infringes. 
  
 (c) Notwithstanding any provision to the contrary, the indemnification obligations in this Section 8.2 shall not be applicable to
the extent a Claim arises from (1) use of the AATI IC Technology in violation of the license terms herein or (2) modification of the AATI IC Technology by a party other than AATI, or (3) a combination of the AATI IC Technology with other technology
not provided by AATI or (4) MAGNACHIP acting as a foundry to any Third Party AATI Intellectual Property licensee, provided, however, that AATI has, in its written consent granting permission to MAGNACHIP to act as a foundry to such Third Party
licensee, provided a written representation reasonably satisfactory to counsel to MAGNACHIP that AATI has indemnified such Third Party licensee from and against all claims, proceedings and/or suits brought against the Third Party licensee and
alleging that AATI intellectual property as provided by AATI to the Third Party licensee infringes or violates any patent, copyright, trade secret or other intellectual property right. THE FOREGOING SECTION 8.2 STATES THE SOLE LIABILITY OF AATI, AND
THE SOLE REMEDY OF MAGNACHIP, WITH RESPECT TO INFRINGEMENT OR MISAPPROPRIATION OF ANY PATENT, COPYRIGHT, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT BY AATI IC TECHNOLOGY PROVIDED TO MAGNACHIP BY AATI UNDER THIS AGREEMENT. 
  

 9. OTHER INDEMNITIES. Notwithstanding anything to the contrary in this Agreement or
any Exhibit hereto, each party agrees to defend, indemnify and hold the other harmless from and against any and all claims, liability for damages, costs and expenses (including reasonable attorney’s fees and disbursements) for any noncompliance
by said party or its Affiliates or agents with the laws, rules or regulations of any jurisdiction, including export control laws. 
  
 10. LIMITATION OF LIABILITY. 
  
 EXCEPT FOR A BREACH OF SECTIONS 2.1(c) or 11 or LIABILITY UNDER SECTIONS 8 AND 9, IN NO EVENT WILL EITHER PARTY BE LIABLE FOR LOST PROFITS
OR ANY CONSEQUENTIAL, SPECIAL, PUNITIVE, INCIDENTAL, OR INDIRECT DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING WITHOUT LIMITATION, NEGLIGENCE), ARISING OUT OF OR RELATED TO THIS AGREEMENT WHETHER OR NOT SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EACH PARTY ACKNOWLEDGES THAT FEES AGREED UPON BY THE PARTIES ARE BASED IN PART UPON THESE LIMITATIONS, AND THAT THESE LIMITATIONS WILL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY REMEDY.
NOTWITHSTANDING THE FOREGOING, THIS LIMITATION OF LIABILITY SHALL NOT APPLY TO ANY CLAIM WITH RESPECT TO DEATH OR PERSONAL INJURY. 
  
 EXCEPT FOR A BREACH OF SECTIONS 2.1(c) or 11, IN NO EVENT SHALL EITHER PARTY’S LIABILITY UNDER THIS AGREEMENT EXCEED THE AMOUNT OF
U.S. FIVE MILLION DOLLARS (US$5,000,000.00) IN THE AGGREGATE. 
  
 11. CONFIDENTIALITY OF INFORMATION. 
  
 11.1 Each Receiving Party shall safeguard the Confidential Information and keep it in strict confidence, and shall use reasonable efforts, consistent with those used in the protection of its own confidential
information of similar nature and significance, to prevent the disclosure of such Confidential Information to Third Parties. 
  
 11.2 A Receiving Party shall limit the dissemination of the Confidential Information to only its shareholders, directors, officers,
employees and agents, who have a specific need to know such Confidential Information for the purpose for which such Confidential Information is disclosed and prevent the dissemination of such Confidential Information to Third Parties;
provided however a Receiving Party may disclose Confidential Information of the a Disclosing Party to the extent required to do so under applicable law. In the event such disclosure is required, the Receiving Party shall provide prompt
prior written notice to the Disclosing Party, shall use commercially reasonable efforts to limit any such disclosure, shall cooperate in a reasonable manner with the Disclosing Party in resisting such disclosure, and provide sufficient time, if
possible, for the Disclosing Party to seek a protective order or other legal recourse against disclosure. 
  
 11.3 Each Receiving Party shall not use or disclose the Confidential Information for any purposes other than for the performance of
this Agreement. 
  
 11.4
Confidentiality of Terms. The Parties shall keep the terms of this Agreement confidential and shall not now or hereafter divulge these terms to any Third Party except: 
  
 (a) with the prior written consent of the other Party; or 
  

 (b) to any governmental body having jurisdiction to call therefor; or 
  
 (c) as otherwise may be required by law or legal process, including to legal
and financial advisors in their capacity of advising a Party in such matters; or 
  
 (d) to the extent reasonably necessary to comply with United States law in a filing with the Securities and Exchange Commission, or other governmental agency; or 
  
 (e) during the course of litigation so long as the disclosure of such terms
and conditions are restricted in the same manner as is the confidential information of other litigating Parties and so long as (1) the restrictions are embodied in a court-entered protective order and (2) the disclosing Party informs the other Party
in writing at least ten (10) days in advance of the disclosure; or 
  
 (f) in confidence to legal counsel, accountants, banks and financing sources and their advisors solely in connection with financial transactions or other corporate transactions, and said persons are held to the same level of confidentiality
as set forth herein. 
  
 11.5 Nothing
contained in this Section 11 shall be construed as granting or conferring any rights, licenses or establishing relationships by the disclosure or transmission of a Disclosing Party’s Confidential Information. 
  
 11.6 All Confidential Information disclosed to or
received by a Receiving Party’s under this Agreement shall always remain the property of the Disclosing Party, except for the license granted herein or other terms or conditions expressly provided herein. Upon the expiration or termination of
this Agreement, the Receiving Party shall return to the Disclosing Party all Confidential Information and any documents or storage media (including any and all transcripts and copies thereof recording such Confidential Information. 
  
 11.7 The confidentiality obligations set forth in
this Article shall not apply to any information which: 
  
 (a) is
already known by the Receiving Party at the time of its receipt from the Disclosing Party; or 
  
 (b) is or becomes publicly available or known through no breach of this Section 11, or any other agreement between the Parties by the Receiving Party ; or 
  
 (g) is made available to a Third Party by the Disclosing Party without any restriction on disclosure; or 
  
 (h) is rightfully received by the Receiving Party from a Third Party who is
not restricted from disclosing such information and is not in wrongful possession of such information; or 
  
 (i) can be demonstrated has been independently developed by the Receiving Party without reference to the Disclosing Party’s Confidential Information;
or 
  
 (j) is disclosed with the prior written consent of the
Disclosing Party. 
  

 11.8 Each Receiving Party acknowledge that any disclosure or dissemination of any
Confidential Information of the Disclosing Party which is not expressly authorized under this Agreement is likely to cause irreparable injury to such Disclosing Party, for which monetary damages is not likely to be an adequate remedy, and therefore
such Party shall be entitled to equitable relief, without the posting of bond or security, in addition to any remedies it may have under this Agreement or at law. 
  
 12. GENERAL. 
  
 12.1 Independent Contractors. The Parties hereto are independent contractors. Nothing contained herein will
constitute either Party the agent of the other Party, or constitute the Parties as partners or joint ventures. MAGNACHIP shall make no representations or warranties on behalf of AATI with respect to the MAGNACHIP Licensed Products or AATI IC
Technology. 
  
 12.2 Days.
Unless otherwise indicated, the term “days” used in this Agreement is assumed to be calendar days. 
  
 12.3 Assignment. Neither Party may assign or delegate this Agreement or any of its licenses, rights or duties under this
Agreement, directly or indirectly (in a single transaction or any series of transactions), by operation of law or otherwise, without the prior written consent of the other Party. Notwithstanding, a Party may assign this agreement to an affiliate of
such Party and in the case of a re-incorporation, reorganization or a sale or other transfer of substantially all such Party’s assets or equity, including, without limitation, either party’s right to sell all or spin-off all or
substantially all of its assets to which this Agreement relates, whether by sale of assets or stock or by merger or other reorganization that the assignee has agreed in writing to be bound by all the terms and conditions of this Agreement, and
further, provided that in no event shall either party (or its permitted successors) assign or transfer (in a single transaction or any series of transactions) this Agreement or any of its licenses, rights or duties hereunder, to a party primarily
engaged in the manufacture, marketing or sale of a product that directly competes with the products of the other party without the prior written permission of such other party. Upon any such attempted prohibited assignment or delegation, such
assignment shall be deemed null and void, and this Agreement will immediately automatically terminate. Subject to the terms of this Section 12.3, this Agreement will inure to the benefit of each Party’s successors and assigns.
 
  
 12.4 Notices. Any
notice required or permitted to be given by either Party under this Agreement will be in writing or by email and will be deemed given: (i) one day after pre-paid deposit with a commercial courier service (e.g., DHL, FedEx), (ii) upon receipt, if
personally delivered, (iii) three days after deposit, postage pre-paid, with first class airmail (certified or registered if available), or (iv) upon receipt, when sent by facsimile or e-mail (with a confirmation copy to follow by regular U.S.
Mail), in any such case, to the other Party at its address below, or to such new address as may from time to time be supplied hereunder by the Parties hereto: 
  
 Notice Address for AATI: 
  
 Advanced Analogic Technologies Inc. 
 830 E.
Arques Ave. 
 Sunnyvale, California 94085 
 Attn: President 
 Tel: (408) 737-4600 
 Fax: (408) 737-4611 
 Email: 
  

 Notice Address for MAGNACHIP: 
  
 MagnaChip Semiconductor, Ltd. 
 1, Hyangjeong-dong, Hungduk-gu, Cheongju-si, Chungbuk, South Korea 
 Attn: President & CEO, with
copy to Legal Department 
 Tel: 82-2-3459-3007 
 Fax: 82-2-3459-3666 
 Email: youm.huh@magnachip.com 
  
 12.5 Export Regulations. MAGNACHIP understands
and acknowledges that AATI is subject to regulation by agencies of the United States Government, including, but not limited to, the U.S. Department of Commerce, which prohibit export or diversion of certain technology to certain countries. Any
obligations of AATI to provide technology are subject in all respects to such United States laws and regulations as from time to time govern the license and delivery of technology and services outside the United States. MAGNACHIP will comply with
all applicable laws, and will not export, re-export, transfer, divert or disclose, directly or indirectly, including via remote access, the AATI IC Technology, Products, any confidential information contained or embodied in the AATI IC Technology or
Products, or any direct product thereof, except as authorized under the Export Administration Regulations or other United States laws and regulations governing exports in effect from time to time. 
  
 12.6 Payment. Payment must be in U.S. Dollars.
All references to “dollars” or “$” in this Agreement mean United States dollars. 
  
 12.7 Legal Compliance. MAGNACHIP will comply with all applicable laws in connection with its performance under this
Agreement. 
  
 12.8 Force
Majeure. Neither Party shall be responsible for delays or failures in performance not within its reasonable control resulting from acts of God, strikes or other labor disputes, riots, acts of war, acts of terrorism, plagues and epidemics,
governmental regulations superimposed after the facts, communication line failures, power failures, fire or other disasters beyond its control. If it appears that MAGNACHIP’s performance hereunder will be delayed for more than ninety (90) days,
AATI shall have the right to terminate this Agreement, or to cancel without cancellation charges those Purchase Orders or portions thereof which are affected by the delay. 
  
 12.9 Language. This Agreement is in the English language only, which language will be
controlling in all respects, and all versions hereof in any other language will not be binding on the Parties hereto. All communications and notices to be made or given pursuant to this Agreement must be in the English language. The Parties hereto
confirm that it is their wish that this Agreement, as well as other documents relating hereto, including notices, have been and will be written in the English language only. 
  
 12.10 Governing Law. The rights and obligations of the Parties under this Agreement
will not be governed by the 1980 U.N. Convention on Contracts for the International Sale of Goods; 

  

 
rather such rights and obligations will be governed by and construed under the laws of the State of California, without reference to its conflict of laws
principles. 
  
 12.11
Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the existence, validity, breach or termination of this Agreement, whether during or after its term, will be finally settled by arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”), as modified or supplemented as follows:  
  
 (a) To initiate arbitration, a Party will file the appropriate notice at the AAA. The arbitration proceeding
will take place in San Francisco, CA or such other place as the Parties may agree in writing. The arbitration panel will be selected in accordance with the AAA standards. The Parties expressly agree that the arbitrators will be empowered to, at a
Party’s request, (i) issue an interim order requiring one or more other Parties to cease using and return the requesting Party’s Confidential Information and/or (ii) grant injunctive relief. 
  
 (b) The arbitration award will be the exclusive remedy of
the Parties for all claims, counterclaims, issues or accounting presented or pled to the arbitrators. The award will be granted and paid in U.S. Dollars exclusive of any tax, deduction or offset and will include reasonable attorneys fees and costs.
Judgment on the arbitration award may be entered in any court that has jurisdiction thereof. Any additional costs, fees or expenses incurred in enforcing the arbitration award will be charged against the Party that resists its enforcement.

  
 (c) Nothing in this Section
12.11 will prevent a Party from seeking injunctive relief against another Party from any judicial or administrative authority pending the resolution of a dispute by arbitration. MAGNACHIP acknowledges that a violation of proprietary rights of
AATI would result in irreparable injury entitling MAGNACHIP to injunctive relief. 
  
 12.12 Modification and Waiver. No amendment, waiver or any other change in any term or condition of this Agreement will be
valid or binding unless mutually agreed to in writing by both Parties. The failure of a Party to enforce any provision of this Agreement, or to require performance by the other Party, will not be construed to be a waiver, or in any way affect the
right of either Party to enforce such provision thereafter. 
  
 12.13 Severability. If a court or other body of competent jurisdiction finds, or the Parties mutually believe, any provision of this Agreement, or portion thereof, to be invalid or unenforceable, such
provision will be enforced to the maximum extent permissible so as to effect the intent of the Parties, and the remainder of this Agreement will continue in full force and effect. The Parties shall negotiate in good faith an enforceable substitute
provision that most nearly achieves the intent and economic effect of such invalid or unenforceable provision.  
  
 12.14 Favored Pricing Terms. 
  
 12.15 The price charged AATI and its customers for any MAGNACHIP Licensed Products shall always be MAGNACHIP’s lowest price
charged any customer for such MAGNACHIP Licensed Product (or other products which are most similar or substantially equivalent to the manufacturing, function, and electrical specification of said MAGNACHIP Licensed Products) regardless of any
special terms, conditions, rebates, or allowances of any nature. If MAGNACHIP provides MAGNACHIP Licensed Products or other technologies that are related to the AATI IC Technology or AATI Intellectual Property to any customer at a price less than
provided for herein, MAGNACHIP shall adjust its price charged to AATI to 

  

 
the lower price for any un-invoiced product and for all outstanding and future invoices for such product. AATI shall have the right to audit MAGNACHIP’s
compliance with this provision by conducting an Audit in accordance with Section 5.3 of this Agreement. 
  
 12.16 Entire Agreement. The terms and conditions of this Agreement, including all exhibits hereto, constitute the entire
agreement between the Parties and supersede all previous agreements and understandings, whether oral or written, between the Parties hereto with respect to the subject matter hereof.  
  
 12.17 Authority. 
  
 (i) By AATI. Execution or modification of this
License Agreement requires the approval of the President (or the CEO) and the Chief Technical Officer (CTO) of AATI. No other employee of AATI can approve modifications to the Intellectual Property licenses contained herein. 
  
 (ii) By MAGNACHIP. Execution or modification
of this License Agreement requires the approval of a representative officer or director of MAGNACHIP. No other employee of MAGNACHIP can approve modifications to the Intellectual Property licenses contained herein. 
  
 12.18 Counterparts. This Agreement may
be executed in one or more counterparts, each of which shall be an original, and all of which taken together shall constitute a single instrument. 
  

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the date and the year first herein
above written. 
  

			
	MAGNACHIP Semiconductor, Ltd.
		
	Signature:	 	 
		
	 Name:
	 	 Youm Huh

		
	 Title:
	 	President and Chief Executive Officer (CEO)
		
	 Address:
	 	891 Daechi-dong Kangnam-gu, Seoul, South Korea, 135-738
		
	 Facsimile:
	 	82-2-3459-3666

  

			
	Advanced Analogic Technologies, Inc.:
		
	Signature:	 	 
		
	 Name:
	 	 Richard K. Williams

		
	 Title:
	 	President, Chief Executive Officer (CEO) and Chief Technical Officer (CTO)
		
	 Address:
	 	830 E. Arques Ave. Sunnyvale, California 94085
		
	 Facsimile:
	 	(408) 737-4611License Agreement(TrenchDMOS) dated Mar. 18, 2005-Advanced Analogic Technologies

 Exhibit 10.28 
  
 LICENSE AGREEMENT 
 (TrenchDMOS) 
  
 DATED March 18 2005

  
 BETWEEN 
  
 ADVANCED ANALOGIC TECHNOLOGIES INC. 
  
 AND 
  
 MAGNACHIP SEMICONDUCTOR, LTD. 
  

 LICENSE AGREEMENT 
 (TrenchDMOS) 
  
 This agreement (the “Agreement”) is made effective as of March 18, 2005, by and between Advanced Analogic Technologies Inc., a California corporation with its principal place of business located at
830 E. Arques Ave, Sunnyvale California 94085 (hereafter called “AATI”) and MagnaChip Semiconductor, Ltd. with its principal place of business located 1, Hyangjeong-dong, Hungduk-gu, Cheongju-si,Chungbuk, South Korea (hereafter
called “MAGNACHIP”). 
  
 RECITALS

  
 WHEREAS, AATI and/or its affiliates own certain
technology related to TrenchDMOS Technology (as defined below), and 
  
 WHEREAS, MAGNACHIP wishes to obtain a license to certain technology of AATI, and AATI has agreed to license such technology pursuant to the terms and conditions set forth herein, including a use restriction, and 
  
 WHEREAS, AATI wishes to provide for the manufacture, assembly, test and
delivery of certain Products (defined below), and MAGNACHIP has agreed to undertake such obligations pursuant to the terms and conditions set forth in the Wafer Supply Agreement dated June 4, 2002 (“Wafer Agreement”), as those terms
and conditions are amended by an Amendment effective on the Effective Date hereof. 
  
 NOW, THEREFORE, the MAGNACHIP and AATI agree as follows: 
  
 AGREEMENT 
  
 1.
DEFINITIONS. The following terms will have the meanings attributed thereto, unless otherwise provided herein: 
  
 1.1 “AATI Field” means the design, manufacturing, testing, sale, offer for sale, or distribution of Products,
which are using AATI TrenchDMOS Technology described hereunder. 
  
 1.2 “AATI Improvements” shall have the meaning attributed thereto in Section 3.3. 
  
 1.3 “AATI Intellectual Property” means those Intellectual Property Rights that AATI owns or has a right to license
consistent with the scope of the license hereunder. 
  
 1.4 “AATI Licensed Products” means those AATI Products whose manufacture includes the use of MAGNACHIP Technology. 
  
 1.5 “AATI Products” means those Low-Voltage TrenchDMOS Products of AATI, including, but not limited to, those
identified on Exhibit A, as may be amended by AATI from time to time. 
  
 1.6 “AATI Discrete Technology” means the designs, technology and other information provided by AATI to MAGNACHIP related to TrenchDMOS Technology and related device and processing under this
Agreement. AATI Discrete Technology includes the processes, methods, devices and apparatus described in the United States and foreign patents and patent applications listed on Exhibit B along with any 

  

 
improvements, derivatives, continuation patents, foreign filings, continuation in part (CIP) applications, and all work by AATI or its employees related to
TrenchDMOS Technology preceding said applications (dating back to September 1998) continuing through the term of this Agreement. AATI Discrete Technology also includes the features, devices, processes, apparatus and methods identified in
Exhibit C including those protected by the Patents in Exhibit B. For the purposes of clarity (and notwithstanding the above definition of AATI Discrete Technology), AATI Discrete Technology does not include integrated
circuit technology (including IC processes incorporating CMOS, BiCMOS, CBiC, and BCD device arsenals), IC processes used to produce power management integrated circuits (such as AATI’s proprietary ModularBCD Technology), circuit designs,
packaging technology, the multi-chip combination of TrenchDMOS or discrete transistors with integrated circuits, the multi-chip combination of TrenchDMOS or discrete devices with Schottky diodes, and other related designs, technologies and
information. 
  
 1.7 “Basic
Semiconductor Technology” means designs, technology and other information used to design, manufacture and test semiconductors, including etching, depositions, diffusion, cleaning, photolithography, and other semiconductor processes or
sequences (such as LOCOS). Basic Semiconductor Technology does not include process architecture or the process integration (and resulting process flow) of an integrated process such as TrenchDMOS Technology. It also does
not include “specialized” unit process steps such as directionally deposited oxides, chained and non-Gaussian implants, etc. 
  
 1.8 “Competing Products” means products that compete with the AATI Products after the date of this Agreement. If
any portion of a Product includes or integrates the functions of a Competing Product, then such product is a “Competing Product.” 
  
 1.9 “Confidential Information” means any information disclosed by either Party (the “Disclosing
Party”) to the other Party (the “Receiving Party”) under this Agreement, either directly or indirectly, in writing, orally or by inspection of tangible objects (including without limitation documents, prototypes, samples
and equipment), which is designated as “Confidential,” “Proprietary” or some similar designation. Information communicated orally or through inspection shall be considered Confidential Information if such information is
confirmed in writing as being Confidential Information within a reasonable time after the initial disclosure. Confidential Information may also include information disclosed to a Disclosing Party by Third Parties. Notwithstanding any
designation of “Confidential”, Confidential Information includes the AATI Discrete Technology. 
  
 1.10 “Effective Date” means the date at which this Agreement is signed by both Parties. 
  
 1.11 “Facility” means the
MAGNACHIP-owned wafer fabrication facility located in Gumi, Korea and Cheong-ju, Korea or such other MAGNACHIP-owned facility that the Parties may agree upon in writing. 
  
 1.12 “MAGNACHIP Field” means Basic Semiconductor Technology, along with the design,
manufacture, test, and sales of products not related to analog semiconductors, power semiconductors, or the AATI Field (such as memory ICs, digital ICs, displays, sensors, and other non-analog or non-power semiconductor products). 
  
 1.13 “MAGNACHIP Licensed Products”
means Non-Competing Products of MAGNACHIP, i.e. Non-Competing Products marketed and sold under a MAGNACHIP-owned brand or sold by MAGNACHIP to a Third Party as wafer sales, die sales or finished good sales through MAGNACHIP’s foundry services
business that include or rely upon AATI Discrete Technology. 
  

 -2- 

 1.14 “MAGNACHIP Improvements” shall have the meaning attributed
thereto in Section 3.3. 
  
 1.15
“MAGNACHIP Intellectual Property” means those Intellectual Property Rights that MAGNACHIP owns or has a right to license consistent with the scope of the license hereunder. 
  
 1.16 “MAGNACHIP Technology” means
the Basic Semiconductor Technology, and technology not related to analog and power semiconductor manufacture such as memory IC and digital IC processes, provided by MAGNACHIP to AATI. 
  
 1.17 “Intellectual Property Rights”
means any intellectual property right existing now or during the term of this Agreement recognized throughout the world, including without limitation copyright, maskwork rights, patent rights, trade secrets and know-how. For the purposes of this
Agreement, “Intellectual Property Rights” excludes trademarks, service marks and domain names. 
  
 1.18 “Improvements” means all copyrightable material, notes, records, drawings, designs, inventions, patents,
improvements, developments, discoveries and trade secrets first conceived, made or discovered by a Party during the period of this Agreement which relate in any manner to, or are derived from, the AATI Discrete Technology, the MAGNACHIP Technology
or Confidential Information licensed or provided hereunder, including any enhancements, modifications or derivations thereto. 
  
 1.19 “Joint Improvements” shall have the meaning attributed thereto in Section 3.3. 
  
 1.20 “Low-Voltage TrenchDMOS
Products” means those TrenchDMOS products that have low- voltage characteristics. For the purpose of this Agreement, “Low-Voltage” shall be defined as semiconductor components rated at 35 volts or less, i.e. devices
who drain-to-source breakdown specification not exceeding 35V. “TrenchDMOS Products” include the following semiconductor components: (1) Discrete power MOSFETs produced using TrenchDMOS Technology or portions of TrenchDMOS
Technology (2) Multichip packages containing at least one discrete power MOSFET produced using TrenchDMOS Technology or portions of TrenchDMOS Technology (3) Monolithically integrated power MOSFETs produced using TrenchDMOS Technology or portions of
TrenchDMOS Technology (including dual common-drain devices). “TrenchDMOS Products” collectively comprise N-channel or P-channel devices of differing drain and gate voltage ratings (i.e. Process Types). Some TrenchDMOS
Products may also include gate-to-source ESD protection diodes. 
  
 1.21 “Starting Material” means un-patterned epitaxial silicon wafers comprising either N-epi on an N++ Substrate or P-epi on a P++ Substrate, as applicable. Epitaxial doping and thickness vary with
Process Type. 
  
 1.22 “TrenchDMOS
Technology” means that technology related to the fabrication of semiconductor electronic components comprising or containing at least one trench-gated MOSFET device having vertical current flow (i.e., where current flows between a
topside source contact and a backside drain contact in a manner which is substantially perpendicular to the wafer’s surface in the drain and/or channel regions of the device) and incorporating any of several unique features, processes, or
characteristics (as described in Exhibit C ) including; 
  

	 	(a)	A “chained implant DMOS body” (or CIDB) using sequential multiple and high energy (including MeV) ion implantations to form an active MOS channel;

  

 -3- 

	 	(b)	A trench gate with “thick bottom oxide” (TBOX) formed by directional deposition of dielectric material; 

  

	 	(c)	A “dual polysilicon trench gate” process comprising an embedded trench gate contacted by a second polysilicon (also used to form optional PN polysilicon diodes);

  

	 	(d)	A “hardmask self-aligned trench gate” photolithographically defined by a dielectric hardmask layer not removed prior to the trench-etch and trench-fill
processing steps; 

  

	 	(e)	A “super-self aligned” (or SSA) trench gate photolithographically defined by a dielectric hardmask layer subsequently removed by chemical and/or CMP methods to
facilitate contact across the entire silicon mesa (i.e. trench-to-trench); 

  

	 	(f)	A high-speed embedded “polycide” trench gate comprising a polysilicon-sealed silicide trench gate structure (i.e. where the silicide does not touch the gate
oxide); 

  

	 	(g)	A “planarized gate bus” comprising the integration of narrow (trench-gates) and wide (trench-gate-bus) regions, sharing a common embedded polysilicon, planarized by
CMP or etchback 

  

	 	(h)	A rugged trench-gated DMOS combining thick bottom oxide (TBOX) with an embedded PN drain clamping diode (or “TBOX clamping diode”), said clamping diode being
shallower than trenches but deeper than the polysilicon gates; 

  

	 	(i)	A “planarized silicided trench contact” for a trench gated DMOS with improved ruggedness (avalanche capability); 

  

	 	(j)	A “salicide trench gate DMOS”, comprising self aligned silicided (i.e. salicide) polysilicon and mesa regions; 

  
 TrenchDMOS Technology can also be characterized by its low thermal budget fabrication
(no long or high temperature diffusions), its high-density-capable device construction (287 Mcells/in2 and
up), a highly-reproducible short channel capable of low thresholds without punchthrough, and the unique benefits of its thick bottom oxide including lower gate charge (per trench width), reduced field-plate-induced breakdown, and improved
reliability (since impact ionization and avalanche occur near the thick bottom oxide, not in the vicinity of thin gate oxide). TrenchDMOS Technology includes but is not limited to the processes, methods, devices, mask designs, and
apparatus described in United States and foreign Patents and Patent applications listed in Exhibit B along with any improvements, derivatives, continuation patents, foreign filings, continuation in part (CIP) applications, and all work
by AATI or its employees related to TrenchDMOS Technology preceding said applications (dating back to September 1998) continuing through the term of this Agreement. TrenchDMOS Technology features includes but is not limited to the
features, device structures, apparatus and fabrication methods listed in Exhibit C. TrenchDMOS Technology collectively comprises processes and methods to manufacture N-channel and P-channel TrenchDMOS Products, for any and all
drain-to-source and gate-to-source device voltage ratings (referred to herein as “Process Types”). 
  
 1.23 “Net Sales” means the gross selling die or wafer price (depending on how such is sold) invoiced by MAGNACHIP,
its affiliates and authorized manufacturers on sales or other dispositions of 

  

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MAGNACHIP Licensed Products, less the following items to the extent they are included in such gross revenues and separately stated on the invoice: (i) normal
and customary rebates, refunds and discounts actually given by seller, (ii) insurance, transportation and other delivery charges actually paid by seller, (iii) sales, excise, value-added and other taxes, and (iv) testing and packaging costs (v)
backmetal and backgrind performed as a service to MAGNACHIP by any 3rd party vendor. Sales between MAGNACHIP, its
affiliates and authorized manufacturers shall not be included in Net Sales (but sales or dispositions by MAGNACHIP, its affiliates and authorized manufacturers to third parties shall count as Net Sales). If any MAGNACHIP Licensed Products are sold
or transferred in whole or in part for consideration other than cash, Net Sales shall include the fair market value of such MAGNACHIP Licensed Product. For purposes of this definition of Net Sales, “authorized manufacturer” means
any entity (other than a MAGNACHIP affiliate) that manufacturers (including any assembly and packaging of MAGNACHIP Licensed Products) and sells MAGNACHIP Licensed Products under authority, directly or indirectly, from MAGNACHIP. 
  
 1.24 “Non-Competing Products” means
(i) Products comprising or containing vertical power MOSFETs that operate above 35V (i.e. have a drain to source breakdown voltage specification in excess of 35V), or (ii) Products that do not comprise or contain vertical power MOSFETs (including
conventional planar lateral MOSFETs). For clarity, vertical MOS-bipolar merged devices such as the MOS gated thyristor, emitter switch thyristors, or IGBTs (insulated gate bipolar transistors) whether conventional or trench-gated are
Non-Competing Products. Specific examples of Non—Competing Products are listed in Exhibit D. 
  
 1.25 “Other Technology” means all designs, technology and information other than AATI Discrete Technology and
beyond the scope of this Agreement. Other Technology includes, without limitation, ModularBCD Technology as defined in the License Agreement (ModularBCD) between AATI and MAGNACHIP of even date with this Agreement. 
  
 1.26 “Party” means each of AATI and
MAGNACHIP (and collectively “Parties” means both MAGNACHIP and AATI). The term Party (whether referred to as a “Party” or “Parties” or “AATI” or “MAGNACHIP”) does not include any affiliates of
such Party except for wholly owned subsidiaries, unless expressly agreed upon in writing by both Parties. In addition, the terms Party, AATI, MAGNACHIP and Parties shall not include any assignees or successors in interest except as provided for
under Section 12.3. 
  
 1.27
“Process Type” means the process variations of TrenchDMOS Technology in conductivity type, epitaxial doping, and gate oxide thickness that sets the device voltage ratings for drain minimum avalanche breakdown (i.e. BVDSS) and for maximum gate voltage (i.e., its VGS(max) specification). Process Types are coded by their ratings using the nomenclature Polarity-BVDSS -VGS(max). A TrenchDMOS
Process Type P3020, for example, refers to a P-channel device with a 30V drain rating and a 20V maximum gate voltage rating. Other Process Types in TrenchDMOS Technology include; P2012, P1208, N3020, N3012, and N2012. 
  
 1.28 “Products” means semiconductor
devices; integrated circuits, discrete transistors; or semiconductor components; whether in wafer form or separated into individual dice (chips), whether assembled into packages, modules, chip-scale packages, bumped, or otherwise unassembled,
whether tested or untested. Products include both Competing Products and Non-Competing Products. 
  
 1.29 “AATI Wafer Price” means the current price of an eight-inch wafer which AATI pays to MAGNACHIP, including the
EPI substrate, but not including back metal, back grind or project costs. 

  

 -5- 

 
The said wafer price shall be agreed upon by both Parties and both Parties agree to revisit the wafer price on an annual basis in the future. 
  
 1.30 Customer means any third party purchaser of
products under this Agreement who is not an affiliate, parent company or subsidiary of MAGNACHIP or AATI. 
  
 1.31 “Release-to-Manufacturing (RTM) Date” means the date when the first TrenchDMOS Product using TrenchDMOS
Technology is successfully qualified for a particular TrenchDMOS Process Type, i.e. for a given drain and gate voltage specification. The RTM Date requires the successful fabrication and burn-in qualification of three (3) wafer runs of said
Product for that Product Type. Thereafter both Product and TrenchDMOS Technology are qualified and manufacturing production for that particular Process Type can commence. Each specific Process Type (e.g. N2012, P3020) will require separate
qualification to constitute a Release-to-Manufacturing (RTM) for that Process Type. 
  
 1.32 “Third Party” means any company, corporation, partnership, person or commercial entity other than a Party.

  
 2. LICENSE 
  
 2.1 License by AATI. 
  
 (a) Subject to the terms and conditions set forth in this
Agreement, AATI hereby grants and agrees to grant to MAGNACHIP, and MAGNACHIP accepts, the following license: 
  
 (i) a non-exclusive and non-transferable (except pursuant to Section 12.3), license under the AATI Intellectual Property to:

  
 (1) make at the Facility (but not have made
elsewhere), design, develop, offer to sell, sell, use, import, and otherwise dispose of the MAGNACHIP Licensed Products; 
  
 (2) practice, at the Facility, any process or method involved in the manufacture or use of MAGNACHIP Licensed Products; and

  
 (3) to make, use and have made any
manufacturing apparatus involved in the manufacture or use of MAGNACHIP Licensed Products. 
  
 (ii) a non-exclusive nontransferable (except pursuant to Section 12.3) license under the AATI Intellectual Property to use the
AATI Discrete Technology for the sole purpose of manufacturing and repairing AATI Products, at the Facility, for distribution to AATI. 
  
 (iii) a non-exclusive and non-transferable (except pursuant to Section 12.3), license on a world-wide basis under the AATI
Intellectual Property to use, reproduce modify and make derivative works of the copyrightable materials of the AATI Discrete Technology solely for use in connection with the exercise of the license granted in Section 2.1(a)(i) and
(ii). 
  
 (b) MAGNACHIP Licensed Products
shall be royalty-bearing in accordance with Section 5. 
  

 -6- 

 (c) MAGNACHIP shall have no license under the AATI Intellectual Property to supply AATI
Products or Competing Products to any party other than AATI without AATI’s prior written approval except as provided for in Section 2.3. Further, for clarity and notwithstanding anything to the contrary set forth in this Agreement, to
the extent (i) a MAGNACHIP License Product includes or relies upon both AATI Discrete Technology and Other Technology, or (ii) the practice of any rights granted under this Section 2.1 infringes or misappropriates any AATI Intellectual
Property due to such Other Technology, then (iii) the use of the Other Technology shall not be considered licensed under this Agreement, but shall instead require a separate license from AATI (which AATI may grant or withhold in its sole
discretion). The parties acknowledge that AATI and MAGNACHIP have executed a separate License Agreement (ModularBCD) concurrently with this Agreement. 
  
 (d) MAGNACHIP shall have the right, upon prior approval of AATI in writing, to sublicense to Third Parties its right under Section
2.1(a). Except as expressly provided in this Section 2.1, MAGNACHIP shall have no right to sublicense the rights granted in this Section 2.1. 
  

2.2 License by MAGNACHIP 
  

(a) Subject to the terms and conditions set forth in this Agreement, MAGNACHIP hereby grants and agrees to grant to AATI, and AATI
accepts, a non-exclusive, irrevocable, royalty free, fully paid-up and non-transferable (except pursuant to Section 12.3, and, under no circumstances, to any other manufacturer of the Products apart from MAGNACHIP), and only for the Term of
this Agreement, license on a world-wide basis under the MAGNACHIP Intellectual Property to: 
  
 (i) make and have made AATI Licensed Products solely in the Facility, 
  
 (ii) offer to sell, sell, use, design, develop, import, and otherwise dispose of AATI Licensed Products
made or to be made in the Facility, 
  
 (iii)
practice, solely within the Facility, any process or method involved in the manufacture of the AATI Licensed Products, 
  
 (iv) to practice any process or method involved in the use of the AATI Licensed Products made in the Facility, and 
  
 (v) make and have made any manufacturing apparatus
involved in the manufacture or use of AATI Licensed Products that incorporates or is based upon MAGNACHIP Technology and to use such apparatus exclusively at the Facility. 
  
 2.3 Competing Products. In no event shall MAGNACHIP utilize any AATI Discrete
Technology in connection with the design, manufacturing, distribution or sale of any Competing Product without the prior written permission of AATI. MAGNACHIP agrees to provide AATI at least thirty (30) days prior written notice prior to
MAGNACHIP’s manufacture, distribution or sale (or assisting others with regard to the same) of any Competing Product. At no time may AATI utilize MAGNACHIP Licensed Products or MAGNACHIP Intellectual property in connection with the design or
manufacturing of AATI Products or AATI Licensed Products outside of MAGNACHIP’ Facility without MAGNACHIP’ expressed written approval. 
  

 -7- 

 3. OWNERSHIP AND RESERVATION 
  
 3.1 By AATI. Subject to the rights
granted to or retained by MAGNACHIP under Sections 2, 3.2 and 3.3, the Parties acknowledge and agree that as between the Parties, all title to and ownership of all AATI Intellectual Property and AATI Discrete Technology not
expressly granted herein shall remain the sole and exclusive property of AATI. Nothing herein shall be construed as granting MAGNACHIP any ownership rights in the AATI Intellectual Property and AATI Discrete Technology. AATI grants no rights,
license or title to its technology beyond the scope of this Agreement, unless otherwise agreed to in writing by both parties. 
  
 3.2 By MAGNACHIP Subject to the rights granted to or retained by AATI under Sections 2, 3.1 and
3.3, the Parties acknowledge and agree that as between the Parties, all title to and ownership of all MAGNACHIP Technology and MAGNACHIP Intellectual Property not expressly granted herein shall remain the sole and exclusive property of
MAGNACHIP. Nothing herein shall be construed as granting AATI any ownership rights in the MAGNACHIP Intellectual Property and MAGNACHIP Technology. MAGNACHIP grants no rights, license or title to its technology beyond the scope of this Agreement,
unless otherwise agreed to in writing by both parties. 
  
 3.3 Improvements. With respect to any Improvements, ownership shall be allocated as follows: 
  
 (a) AATI Improvements. All Improvements to AATI Discrete Technology that are created or conceived solely by AATI shall be solely
owned by AATI (the “AATI Improvements”). AATI shall own all right, title, and interest in the AATI Improvements and all Intellectual Property therein (excluding MagnaChip’ rights in and ownership of any Joint Improvement
under Section 3.3(c) below). AATI shall have the exclusive right to apply for or register any patents, mask work rights, copyrights, and such other proprietary protections with respect thereto. 82Nothing herein shall be construed as granting MAGNACHIP any ownership rights in the AATI Intellectual Property and AATI Discrete Technology. AATI grants no
rights, license or title to such technology and/or Intellectual Property outside the scope of this Agreement. 
  
 (b) MAGNACHIP Improvements All Improvements to MAGNACHIP Technology that are created or conceived solely by MAGNACHIP shall be
solely owned by MAGNACHIP (the “MAGNACHIP Improvements”). MAGNACHIP shall own all right, title, and interest in the MAGNACHIP Improvements, and all Intellectual Property therein (excluding AATI’s rights in and ownership of any
Joint Improvement under Section 3.3(c) below). MAGNACHIP shall have the exclusive right to apply for or register any patents, mask work rights, copyrights, and such other proprietary protections with respect thereto. Nothing herein shall be
construed as granting AATI any ownership rights in the MagnaChip Intellectual Property and MagnaChip Technology. MagnaChip grants no rights, license or title to such technology and/or Intellectual Property outside the scope of this Agreement.

  
 (c) Joint Improvements. Any
Improvement which is jointly created or conceived by the Parties pursuant to this Agreement shall: 
  
 (i) if created or conceived as an Improvement to AATI Discrete Technology as a result of the licenses granted to MAGNACHIP in Section 2
or access to the AATI Discrete Technology or AATI Confidential Information, be considered: 
  
 (1) a “Joint Improvement” under this Section 3.3(c), if falling outside the AATI Field; or 
  

 -8- 

 (2) an “AATI Improvement” under Section 3.3(a), if falling within the AATI
Field; and 
  
 (ii) if created or conceived as
an Improvement to MAGNACHIP Technology as a result of the licenses granted to AATI in Section 2 or access to the MAGNACHIP Technology or MAGNACHIP Confidential Information, be considered: 
  
 (1) a “Joint Improvement” under this Section 3.3(c), if
falling outside the MAGNACHIP Field; or 
  
 (2) a
“MAGNACHIP Improvement” under Section 3.3(b), if falling within the MAGNACHIP Field. 
  
 (iii) The Parties shall cooperate with each other in obtaining and securing all possible United States and foreign rights to the Joint
Improvements and enforcing such rights. The Parties agree to meet and confer prior to any public dissemination, use or sale of Joint Improvement in order to ensure that any related patent applications have been filed prior to such event, and
shall not make such dissemination, use or sale of Joint Improvement until related patent applications have been filed. The Parties shall share equally in the costs of obtaining Joint Improvement rights which are jointly owned, including but not
limited to the costs of preparing, filing and prosecuting applications and patent maintenance fees. If a Party determines that it does not want to pursue or continue to pursue obtaining a particular Joint Improvement right which otherwise
would be jointly owned, and the other Party elects to do so (the “electing party”), the cost related to that particular Joint Improvement right shall be borne solely by the electing Party and the electing Party shall have sole and full
ownership of such Joint Improvement right, including any derivatives, continuations, divisions, reissues and reexaminations of that Joint Improvement right. 
  
 (iv) MAGNACHIP hereby irrevocably transfers, conveys and assigns to AATI all of its right, title, and
interest in any Improvements described in Section 3.3(c)(i)(2) (AATI Improvement). MAGNACHIP shall execute such documents, render such assistance, and take such other action as AATI may reasonably request, at AATI’s expense, to apply for,
register, perfect, confirm, and protect AATI rights to such Improvements, and all Intellectual Property therein. AATI hereby irrevocably transfers, conveys and assigns to MAGNACHIP all of its right, title, and interest in any Improvements described
in Section 3.3(c)(ii)(b) (MAGANACHIP Improvement). AATI shall execute such documents, render such assistance, and take such other action as MAGNACHIP may reasonably request, at MAGNACHIP’s expense, to apply for, register, perfect, confirm, and
protect MAGNACHIP’s rights to such Improvements, and all Intellectual Property therein. 
  
 (v) MAGNACHIP and AATI shall each have the right to exploit all Joint Improvements (that are not AATI Improvements or MAGNACHIP
Improvements) without being required any additional payment to the other, provided however, in the event a Party refuses to cooperate and pay costs related to the Joint Improvement under Section 3(c)(iii), 

  

 -9- 

 
such Party shall nave no rights to use or exploit such Joint Improvement under the terms of this Agreement. 
  
 (d) Independently Developed. Notwithstanding
the above, to the extent that any Improvements is solely created by a Party under this Agreement, without reference or use of the other Party’s Technology, Intellectual Property or Confidential Information (as defined below), then such Party
shall exclusively own such Improvements. 
  
 3.4 Waiver of Moral Rights. Each party hereby waives any and all “moral rights,” meaning any right to identification of authorship or limitation on subsequent modification that a party (or its employees,
agents or consultants) has or may have in the other party’s Improvements, to the extent recognized by applicable law consistent with Berne Convention, art. 6bis. 
  
 3.5 Attorney in Fact. Each Party assigning any rights under this Section 3 hereunder
(the “Assignor”) agrees that if the other Party (the “Assignee”) is unable because of Assignor’s unavailability, dissolution or incapacity, or for any other reason, to secure Assignor’s signature to apply
for or to pursue any application for any United States or foreign patents or mask work or copyright registrations covering the inventions assigned to Assignee above, then Assignor hereby irrevocably designates and appoints the company and its duly
authorized officers and agents as Assignor’s agent and attorney in fact, to act for and in Assignor’s behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and
issuance of patents, copyright and mask work registrations thereon with the same legal force and effect as if executed by Assignor. This power of attorney is deemed coupled with an interest and is irrevocable. 
  
 3.6 Non-Exclusive Arrangement. Nothing
in this Agreement shall be construed to limit AATI’s rights to manufacture, distribute or take any other action with respect to the AATI Products, AATI Discrete Technology, AATI Improvements or AATI Confidential Information or to authorize any
other persons to do any of the foregoing except as it relates to MAGNACHIP Technology or Improvements to MAGNACHIP Technology pursuant to Section 3.3. Likewise nothing in this agreement shall be construed to limit MAGNACHIP’s rights to
manufacture, distribute or take any other action with respect to the MAGNACHIP Products, MAGNACHIP Technology, MAGNACHIP Improvements or MAGNACHIP Confidential Information or to authorize any other persons to do any of the foregoing, except as it
relates to AATI Discrete Technology or Improvements to AATI Discrete Technology pursuant to Section 3.3. 
  
 4. TECHNOLOGY DELIVERY & IMPLEMENTATION. 
  
 4.1 AATI Discrete Technology. AATI will deliver to MAGNACHIP the AATI Discrete Technology after the Effective Date in a form
that is mutually acceptable to both Parties. AATI deliverables to MAGNACHIP are outlined in Exhibit E. Thereafter, AATI may (but is not obligated to) supplement the AATI Discrete Technology. 
  
 4.2 MAGNACHIP Technology: Upon the
recommendation of MAGNACHIP or upon agreement of both Parties, MAGNACHIP will deliver to AATI the MAGNACHIP Technology listed in Exhibit F that may be applicable and useful in adapting and implementing the AATI Discrete
Technology in said Facility. It is understood by both Parties that the applicability of such MAGNACHIP Technology to AATI Discrete Technology Implementation may vary by Facility. Thereafter, as agreed upon by both Parties, certain processing
steps, methods, or features in the AATI Discrete Technology (such as unit process steps in 

  

 -10- 

 
the TrenchDMOS process flow) may be adapted to incorporate MAGNACHIP Technology or variants thereof. MAGNACHIP may (but is not obligated to)
supplement the MAGNACHIP Technology at a later date. 
  
 4.3 AATI Discrete Technology Implementation. Both Parties agree to implement with commercially reasonable effort, the AATI Discrete Technology in said Facility in accordance with the procedures for AATI
Discrete Technology Implementation as described in Exhibit G. 
  
 (i) Adapting AATI Discrete Technology for Facility. In the event that AATI Discrete Technology is adapted or modified to
best match or fit said Facility by utilizing MAGNACHIP Technology in certain steps or processes, such steps or techniques that constitute MAGNACHIP Technology shall remain the property of MAGNACHIP. Those portions of the AATI Discrete Technology not
using MAGNACHIP Technology along with the integrated process flow of TrenchDMOS Technology constitute AATI Discrete Technology and shall remain the property of AATI. 
  
 (ii) Initial AATI Discrete Technology Implementation. The initial implementation of AATI
Discrete Technology in said Facility does NOT constitute an Improvement to AATI Discrete Technology. 
  
 (iii) Initial AATI Discrete Technology Implementation Milestones. Both Parties will use commercially reasonable efforts to
meet the milestones of the Initial AATI Discrete Technology Implementation including efforts to meet the objective Release-to-Manufacturing (RTM) Date 
  
 5. ROYALTIES AND PAYMENT TERMS. 
  
 5.1 Royalty. 
  
 (a) MAGNACHIP shall pay [*****] royalty for Products its produces for and sells to AATI (or AATI’s affiliate as designated in writing
by contract from AATI). AATI’s wafer price from MAGNACHIP is covered under the AATI MAGNACHIP supply agreement and is not covered by this Agreement. 
  
 (b) In the case of Non-Competing Products, MAGNACHIP shall pay AATI [*****] royalty of Net Sales of all wafers produced using or
incorporating the AATI Intellectual Property licensed herein. (such MAGNACHIP payment to be offset by any payment due from AATI pursuant to Section 5.4 below); provided, however, that the Parties agree that the foregoing royalty rate is based on a
presumption of a [*****] withholding tax rate as of the Effective Date, and so the Parties agree to negotiate in good faith an increase or decrease in such royalty rate at any time the withholding tax rate changes after the Effective Date. Customer
shall be responsible for its own designs or pay for AATI’s design with a release to AATI. Customer and/or MagnaChip shall be responsible for the qualification, orders, shipping logistics and quality. 
  
 (c) In the case of Competing Products, MAGNACHIP has no
license under this Agreement to sell Competing Products to customers other than AATI (and AATI’s affiliates). In the event that AATI has provided said customer with a license to have made, purchase, promote and sell Competing Products, however,
MAGNACHIP may, to the extent it is a qualified manufacturer manufacture Competing Products for such licensee, to the extent authorized by AATI. In such instances, MAGNACHIP shall pay AATI [*****] of the difference between the Net Sales of a wafer
produced using or incorporating the AATI Intellectual 
  
 [*****] - 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. 
  

 -11- 

 
Property licensed herein, and the “AATI Wafer Price” (such MAGNACHIP payment to be offset by any payment due from AATI pursuant to
Section 5.4 below). In the event that a customer provides the Starting Material, the Parties agree to adjust the foregoing AATI Wafer Price by (1) deducting the actual third party costs of such Starting Material ; or (2) otherwise agreeing upon a
commercially reasonable value for such Starting Material and deducting such agreed upon value from the AATI Wafer Price. Customer shall be responsible for qualification and product quality; AATI, at its election, may choose to assist Customer.
MagnaChip shall be responsible for shipping logistics, orders and process quality of wafers. 
  
 (d) Both parties agree that they will review the pricing structure hereunder on an annual basis to ensure the pricing structure is
mutually agreeable, and adjust such accordingly. In the event that a customer provides the Starting Material, the parties agree to adjust the foregoing Net Sales price by (1) deducting the actual third party costs of such Starting Material or (2)
otherwise agreeing upon a commercially reasonable value for Starting Material and deducting such agreed upon value from the Net Sales price. AATI reserves the right to charge additional consideration directly to such customers (as opposed to
MAGNACHIP) for such Competing Products. In such cases, (1) MAGNACHIP makes no representation to AATI with respect to the qualification and product quality; (2) AATI, at its election, may choose to assist such customers with respect to qualification
and product quality; and (3) as between AATI and MAGNACHIP, . MAGNACHIP shall be responsible for shipping logistics, orders and process quality of wafers. 
  
 5.2 Payment. Within 30 days following the end of each calendar quarter, MAGNACHIP and AATI shall pay their respective
royalty payments on invoices paid by the third party in U.S. Dollars and shall include a report sufficient to show the basis for calculation of the royalty payments made hereunder, including without limitation, quantity and identification of all
Competing and Non-Competing Products (“Report”). Upon AATI approval, in lieu of payment on a quarterly basis MAGNACHIP may pay such outstanding royalties by issuing a credit against outstanding AATI invoices or toward new wafer
starts for Products from MAGNACHIP. 
  
 5.3
Records and Audit. Each party shall retain records and supporting documentation sufficient to document the fee payable under this Agreement in any particular quarter in which this Agreement is in effect for at least three years
following the end of such quarter and its compliance with Section 5.2. Upon prior reasonable written notice of no less than sixty (60) days by one party, the other party shall provide to a nationally recognized independent public accounting
firm (the “Auditors”) designated in writing by that party access during normal business hours to the audited party’s personnel, outside accountants and data and records maintained in connection with this Agreement, in each case
to the extent necessary or appropriate for the purpose of determining whether (i) calculations of the royalties payable under this Agreement are accurate and in accordance with this Agreement and/or (ii) MAGNACHIP has offered most favorable pricing
to AATI in accordance with Section 5.2 (an “Audit”). Audits will be conducted no more frequently than once per calendar year. Each party agrees to use commercially reasonable efforts to assist such Auditors in connection with
such Audits. Any such Audits shall be conducted at the requesting party’s sole cost and expense. 
  
 5.4 Taxes. Each Party shall bear any and all taxes and other charges incurred by or levied on it by its own country
in connection with this Agreement, provided, however, that AATI shall bear fifty percent (50%) of any withholding or similar tax for foreign payments that is levied by the Korean Government upon any amounts due from MAGNACHIP to AATI under this
Agreement, and MAGNACHIP is entitled to offset such AATI payment obligation from any amounts actually paid by MAGNACHIP to AATI under this Agreement, including but not limited to amounts due pursuant to Sections 5.1(b) and 5.1(c) 

  

 -12- 

 
above. MAGNACHIP will furnish AATI with each tax receipt issued by the Korean taxing authority to assist AATI in obtaining the credit in the United States.

  
 6. WARRANTY AND DISCLAIMER. 

 
 6.1 General. Each Party
represents and warrants to the other that: 
  
 (a) it has all requisite corporate power and authority to enter into this Agreement and to carry out the transactions contemplated by this Agreement; and 
  
 (b) the execution, delivery and performance of this Agreement and the consummation of the transactions
contemplated by this Agreement have been duly authorized by all requisite corporate action on the part of such Party 
  
 6.2 EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS SECTION 6, NEITHER PARTY MAKES ANY OTHER WARRANTIES WITH
RESPECT TO THE TECHNOLOGY AND INTELLECTUAL PROPERTY RIGHTS LICENSED HEREUNDER, WHETHER EXPRESSED OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. 
  
 7. TERM AND TERMINATION OF AGREEMENT. 
  
 7.1 Term. This Agreement shall have an
initial term of three (3) years but shall be automatically renewed thereafter (and after each subsequent renewal term) for a renewal term of one year unless, at least sixty (60) days prior to the date of any such renewal, either Party hereto shall
have given notice in writing to the other of its intention to terminate the Agreement. This Agreement shall thereafter be automatically terminated at the end of the term during which such notice is given. 
  
 7.2 Termination for Default. Should
either Party materially default in the performance of any term or condition of this Agreement (a “Default”), in addition to all other legal rights and remedies, the other Party may terminate this Agreement by giving thirty (30) days
written notice of said Default unless such Default is corrected within the notice period. 
  
 7.3 Termination for Bankruptcy: Either Party may terminate this Agreement by written notice in the event that the
other Party makes an assignment for this benefit of creditors, or admits in writing inability to pay debts as they become due; or a Trustee or receiver for any substantial part of its assets is appointed by any court; or a proceeding is instituted
under a provision of the Federal Bankruptcy Act by or against the other Party and is acquiesced in or is not dismissed within 60 days or results in an adjudication in bankruptcy. An assignment by AATI of all or part of its rights to payment
hereunder as part of a working capital financing shall not be deemed cause for termination under this paragraph. 
  
 7.4 Effect of Termination. Upon termination or expiration of this Agreement for any reason, all licenses shall
immediately terminate. Each Party shall return the Confidential Information of the other Party within thirty (30) days after the effective date of such termination or expiration. In addition Sections 1, 3, 5.3, 6, 7, 8, 9, 10, 11 and 12 shall
survive any expiration or termination of this Agreement. 
  

 -13- 

 8. INTELLECTUAL PROPERTY RIGHTS INDEMNITY. 
  
 8.1 By MAGNACHIP. 
  
 (a) MAGNACHIP will defend or settle, at its expense, all
claims, proceedings and/or suits brought by Third Parties against AATI, its Affiliates (including their directors, officers, and employees) and customers alleging that the MAGNACHIP Technology as provided by MAGNACHIP to AATI hereunder infringes or
violates any patent, copyright, trade secret or other intellectual property right (herein “Infringement Claim”) and will indemnify AATI from and pay all litigation costs, reasonable attorney’s fees, settlement payments (subject
to reasonable approval by MagnaChip) and damages awarded by a court having jurisdiction over such Infringement Claim with respect to any Infringement Claim; and provided that MAGNACHIP shall be relieved of its obligations under this Section
8.1 unless AATI promptly notifies MAGNACHIP in writing of any such Infringement Claim and gives MAGNACHIP sole control, full authority, information and assistance (at MAGNACHIP’s expense) for the defense or settlement of such Infringement
Claim. 
  
 (b) Without limiting its obligations
under Section 8.1(a), when notified of an action or motion that seeks to restrict the use, sale and/or distribution of any MAGNACHIP Technology hereunder (or part thereof), MAGNACHIP may but is not required nor obligated to, at its option and
expense, (1) obtain the right for AATI to use the MAGNACHIP Technology as licensed hereunder, (2) substitute other functionally equivalent technology that does not infringe, or (3) modify such MAGNACHIP Technology so that it no longer infringes.

  
 (c) Notwithstanding any provision to the
contrary, the indemnification obligations in this Section 8.1 shall not be applicable to the extent an Infringement Claim arises from (1) use of the MAGNACHIP Technology in violation of the license terms herein, (2) the modification of any MAGNACHIP
Technology by AATI, or (3) a combination of the MAGNACHIP Technology with other technology not provided by MAGNACHIP. THE FOREGOING SECTION 8.1 STATES THE SOLE LIABILITY OF MAGNACHIP, AND THE SOLE REMEDY OF AATI, WITH RESPECT TO INFRINGEMENT OR
MISAPPROPRIATION OF ANY PATENT, COPYRIGHT, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT BY THE MAGNACHIP TECHNOLOGY OR MAGNACHIP INTELLECTUAL PROPERTY UNDER THIS AGREEMENT. 
  
 8.2 By AATI. 
  
 (a) AATI will defend or settle, at its expense, all claims, proceedings and/or suits brought by Third
Parties against MAGNACHIP, its Affiliates (including their directors, officers, and employees) alleging that AATI Discrete Technology as provided by AATI to MAGNACHIP hereunder infringes or violates any patent, copyright, trade secret or other
intellectual property right (herein “Claim”) and will indemnify MAGNACHIP from and pay all litigation costs, reasonable attorney’s fees, settlement payments (subject to AATI’s reasonable approval) and damages awarded by a
court having jurisdiction over such Claim with respect to any such Claim; and provided that AATI shall be relieved of its obligations under this Section 8.2 unless MAGNACHIP promptly notifies AATI in writing of any such Claim and gives AATI
sole control, full authority, information and assistance (at AATI’s expense) for the defense or settlement of such Claim. 
  
 (b) Without limiting its obligations under Section 8.2(a), when notified of an action or motion that seeks to restrict the use, sale
and/or distribution of any AATI Discrete Technology hereunder, (or part thereof), AATI may but is not required nor obligated to, at its option and expense, (1) obtain for MAGNACHIP the right to use the AATI Discrete Technology licensed hereunder,
(2) substitute other functionally equivalent technology that does not infringe, or (3) modify such technology so that it no longer infringes. 
  

 -14- 

 (c) Notwithstanding any provision to the contrary, the indemnification obligations in
this Section 8.2 shall not be applicable to the extent a Claim arises from (1) use of the AATI Discrete Technology in violation of the license terms herein or (2) modification of the AATI Discrete Technology by a party other than AATI, or (3)
a combination of the AATI Discrete Technology with other technology not provided by AATI or (4) MAGNACHIP acting as a foundry to any AATI Third Party AATI Intellectual Property licensee, provided, however, that AATI has, in its written consent
granting permission to MAGNACHIP to act as a foundry to such Third Party licensee, provided a written representation reasonably satisfactory to counsel to MAGNACHIP that AATI has indemnified such Third Party licensee from and against all claims,
proceedings and/or suits brought against the Third Party licensee and alleging that AATI intellectual property as provided by AATI to the Third Party licensee infringes or violates any patent, copyright, trade secret or other intellectual property
right. THE FOREGOING SECTION 8.2 STATES THE SOLE LIABILITY OF AATI, AND THE SOLE REMEDY OF MAGNACHIP, WITH RESPECT TO INFRINGEMENT OR MISAPPROPRIATION OF ANY PATENT, COPYRIGHT, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT BY AATI DISCRETE
TECHNOLOGY PROVIDED TO MAGNACHIP BY AATI UNDER THIS AGREEMENT. 
  
 9. OTHER INDEMNITIES. Notwithstanding anything to the contrary in this Agreement or any Exhibit hereto, each Party agrees to defend, indemnify and hold the other harmless from and against any and all claims, liability
for damages, costs and expenses (including reasonable attorney’s fees and disbursements) for any noncompliance by said Party or its Affiliates or agents with the laws, rules or regulations of any jurisdiction, including export control laws.

  
 10. LIMITATION OF LIABILITY. 

 
 EXCEPT FOR A BREACH OF SECTIONS 2.1(c) or 11 or LIABILITY
UNDER SECTIONS 8 AND 9, IN NO EVENT WILL EITHER PARTY BE LIABLE FOR LOST PROFITS OR ANY CONSEQUENTIAL, SPECIAL, PUNITIVE, INCIDENTAL, OR INDIRECT DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING WITHOUT LIMITATION, NEGLIGENCE),
ARISING OUT OF OR RELATED TO THIS AGREEMENT WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EACH PARTY ACKNOWLEDGES THAT FEES AGREED UPON BY THE PARTIES ARE BASED IN PART UPON THESE LIMITATIONS, AND THAT THESE
LIMITATIONS WILL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY REMEDY. NOTWITHSTANDING THE FOREGOING, THIS LIMITATION OF LIABILITY SHALL NOT APPLY TO ANY CLAIM WITH RESPECT TO DEATH OR PERSONAL INJURY. 
  
 EXCEPT FOR A BREACH OF SECTIONS 2.1(c) or 11, IN NO EVENT
SHALL EITHER PARTY’S LIABILITY UNDER THIS AGREEMENT EXCEED THE AMOUNT OF U.S.FIVE MILLION DOLLARS (US$5,000,000.00) IN THE AGGREGATE. 
  
 11. CONFIDENTIALITY OF INFORMATION. 
  
 11.1 Each Receiving Party shall safeguard the Confidential Information and keep it in strict confidence, and shall use reasonable
efforts, consistent with those used in the protection of its own confidential information of similar nature and significance, to prevent the disclosure of such Confidential Information to Third Parties. 
  

 -15- 

 11.2 A Receiving Party shall limit the dissemination of the Confidential
Information to only its shareholders, directors, officers, employees and agents, who have a specific need to know such Confidential Information for the purpose for which such Confidential Information is disclosed and prevent the dissemination of
such Confidential Information to Third Parties; provided however a Receiving Party may disclose Confidential Information of the a Disclosing Party to the extent required to do so under applicable law. In the event such disclosure is required,
the Receiving Party shall provide prompt prior written notice to the Disclosing Party, shall use commercially reasonable efforts to limit any such disclosure, shall cooperate in a reasonable manner with the Disclosing Party in resisting such
disclosure, and provide sufficient time, if possible, for the Disclosing Party to seek a protective order or other legal recourse against disclosure. 
  
 11.3 Each Receiving Party shall not use or disclose the Confidential Information for any purposes other than for the performance of
this Agreement. 
  
 11.4
Confidentiality of Terms. The Parties shall keep the terms of this Agreement confidential and shall not now or hereafter divulge these terms to any Third Party except: 
  
 (a) with the prior written consent of the other Party; or 
  
 (b) to any governmental body having jurisdiction to call therefore; or 
  
 (c) as otherwise may be required by law or legal process, including to legal
and financial advisors in their capacity of advising a Party in such matters; or 
  
 (d) to the extent reasonably necessary to comply with United States law in a filing with the Securities and Exchange Commission, or other governmental agency; or 
  
 (e) during the course of litigation so long as the disclosure of such terms
and conditions are restricted in the same manner as is the confidential information of other litigating Parties and so long as (1) the restrictions are embodied in a court-entered protective order and (2) the disclosing Party informs the other Party
in writing at least ten (10) days in advance of the disclosure; or 
  
 (f) in confidence to legal counsel, accountants, banks and financing sources and their advisors solely in connection with financial transactions or other corporate transactions, and said persons are held to the same level of confidentiality
as set forth herein. 
  
 11.5 Nothing
contained in this Section 11 shall be construed as granting or conferring any rights, licenses or establishing relationships by the disclosure or transmission of a Disclosing Party’s Confidential Information. 
  
 11.6 All Confidential Information disclosed to or
received by a Receiving Party’s under this Agreement shall always remain the property of the Disclosing Party, except for the license granted herein or other terms or conditions expressly provided herein. Upon the expiration or termination of
this Agreement, the Receiving Party shall return to the Disclosing Party all Confidential Information and any documents or storage media (including any and all transcripts and copies thereof) recording such Confidential Information. 
  

 -16- 

 11.7 The confidentiality obligations set forth in this Article shall not apply to
any information which: 
  
 (a) is already known by the Receiving
Party at the time of its receipt from the Disclosing Party; or 
  
 (b) is or becomes publicly available or known through no breach of this Section 11, or any other agreement between the Parties by the Receiving Party ; or 
  
 (c) is made available to a Third Party by the Disclosing Party without any restriction on disclosure; or 
  
 (d) is rightfully received by the Receiving Party from a Third Party who is
not restricted from disclosing such information and is not in wrongful possession of such information; or 
  
 (e) can be demonstrated has been independently developed by the Receiving Party without reference to the Disclosing Party’s Confidential Information;
or 
  
 (f) is disclosed with the prior written consent of the
Disclosing Party. 
  
 11.8 Each Receiving
Party acknowledge that any disclosure or dissemination of any Confidential Information of the Disclosing Party which is not expressly authorized under this Agreement is likely to cause irreparable injury to such Disclosing Party, for which monetary
damages is not likely to be an adequate remedy, and therefore such Party shall be entitled to equitable relief, without the posting of bond or security, in addition to any remedies it may have under this Agreement or at law. 
  
 12. GENERAL. 
  
 12.1 Independent Contractors. The
Parties hereto are independent contractors. Nothing contained herein will constitute either Party the agent of the other Party, or constitute the Parties as partners or joint ventures. MAGNACHIP shall make no representations or warranties on behalf
of AATI with respect to the MAGNACHIP Licensed Products or AATI Discrete Technology. 
  
 12.2 Days. Unless otherwise indicated, the term “days” used in this Agreement is assumed to be calendar
days. 
  
 12.3
Assignment. Neither Party may assign or delegate this Agreement or any of its licenses, rights or duties under this Agreement, directly or indirectly (in a single transaction or any series of transactions), by operation of law or
otherwise, without the prior written consent of the other Party. Notwithstanding, a Party may assign this agreement to an affiliate of such Party and in the case of a re-incorporation, reorganization or a sale or other transfer of substantially all
such Party’s assets or equity, including, without limitation, either Party’s right to sell all or spin-off all or substantially all of its assets to which this Agreement relates, whether by sale of assets or stock or by merger or other
reorganization that the assignee has agreed in writing to be bound by all the terms and conditions of this Agreement, and further, provided that in no event shall either party (or its permitted successors) assign or transfer (in a single transaction
or any series of transactions) this Agreement or any of its licenses, rights or duties hereunder, to a party primarily engaged in the manufacture, marketing or sale of a product that directly competes with the products of the other party without the
prior written permission of such other party. Upon any such attempted prohibited assignment or delegation, such assignment shall be deemed null and void, and this Agreement will immediately automatically terminate. Subject to the terms of this
Section 12.3, this Agreement will inure to the benefit of each Party’s successors and assigns. 
  

 -17- 

 12.4 Notices. Any notice required or permitted to be given by either
Party under this Agreement will be in writing or by email and will be deemed given: (i) one day after pre-paid deposit with a commercial courier service (e.g., DHL, FedEx), (ii) upon receipt, if personally delivered, (iii) three days after deposit,
postage pre-paid, with first class airmail (certified or registered if available), or (iv) upon receipt, when sent by facsimile or e-mail (with a confirmation copy to follow by regular U.S. Mail), in any such case, to the other Party at its address
below, or to such new address as may from time to time be supplied hereunder by the Parties hereto: 
  
 Notice Address for AATI: 
  
 Advanced Analogic Technologies Inc. 
 830 E.
Arques Ave.  
 Sunnyvale, California 94085  
 Attn: President 
 Tel: (408) 737-4600 
 Fax: (408) 737-4611 
 Email: 
  
 Notice Address for MAGNACHIP: 
  
 MagnaChip Semiconductor, Ltd. 
 891 Daechi-dong Kangnam-gu, Seoul, South Korea, 135-738 
  
 Attn: President & CEO 
 Tel:
82-2-3459-3007 
 Fax: 82-2-3459-3666 
 Email: youm.huh@magnachip.com 
  
 12.5 Export Regulations. MAGNACHIP understands and acknowledges that AATI is subject to regulation by agencies of the United States Government, including, but not limited to, the U.S. Department of Commerce, which
prohibit export or diversion of certain technology to certain countries. Any obligations of AATI to provide technology are subject in all respects to such United States laws and regulations as from time to time govern the license and delivery of
technology and services outside the United States. MAGNACHIP will comply with all applicable laws, and will not export, re-export, transfer, divert or disclose, directly or indirectly, including via remote access, the AATI Discrete Technology,
Products, or any confidential information contained or embodied in the AATI Discrete Technology or Products, or any direct product thereof, except as authorized under the Export Administration Regulations or other United States laws and regulations
governing exports in effect from time to time. 
  
 12.6 Payment. Payment must be in U.S. Dollars. All references to “dollars” or “$” in this Agreement mean United States dollars. 
  
 12.7 Legal Compliance. MAGNACHIP will comply with all applicable laws in connection
with its performance under this Agreement. 
  

 -18- 

 12.8 Force Majeure. Neither Party shall be responsible for delays or
failures in performance not within its reasonable control resulting from acts of God, strikes or other labor disputes, riots, acts of war, acts of terrorism, plagues and epidemics, governmental regulations superimposed after the facts, communication
line failures, power failures, fire or other disasters beyond its control. If it appears that MAGNACHIP’s performance hereunder will be delayed for more than ninety (90) days, AATI shall have the right to terminate this Agreement, or to cancel
without cancellation charges those Purchase Orders or portions thereof which are affected by the delay. 
  
 12.9 Language. This Agreement is in the English language only, which language will be controlling in all respects,
and all versions hereof in any other language will not be binding on the Parties hereto. All communications and notices to be made or given pursuant to this Agreement must be in the English language. The Parties hereto confirm that it is their wish
that this Agreement, as well as other documents relating hereto, including notices, have been and will be written in the English language only. 
  
 12.10 Governing Law. The rights and obligations of the Parties under this Agreement will not be governed by the
1980 U.N. Convention on Contracts for the International Sale of Goods; rather such rights and obligations will be governed by and construed under the laws of the State of California, without reference to its conflict of laws principles.

  
 12.11 Arbitration. Any
controversy or claim arising out of or relating to this Agreement, or the existence, validity, breach or termination of this Agreement, whether during or after its term, will be finally settled by arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association (“AAA”), as modified or supplemented as follows: 
  
 (a) To initiate arbitration, a Party will file the appropriate notice at the AAA. The arbitration proceeding will take place in San
Francisco, CA or such other place as the Parties may agree in writing. The arbitration panel will be selected in accordance with the AAA standards. The Parties expressly agree that the arbitrators will be empowered to, at a Party’s request, (i)
issue an interim order requiring one or more other Parties to cease using and return the requesting Party’s Confidential Information and/or (ii) grant injunctive relief. 
  
 (b) The arbitration award will be the exclusive remedy of the Parties for all claims, counterclaims, issues
or accounting presented or pled to the arbitrators. The award will be granted and paid in U.S. Dollars exclusive of any tax, deduction or offset and will include reasonable attorneys fees and costs. Judgment on the arbitration award may be entered
in any court that has jurisdiction thereof. Any additional costs, fees or expenses incurred in enforcing the arbitration award will be charged against the Party that resists its enforcement. 
  
 (c) Nothing in this Section 12.11 will prevent
a Party from seeking injunctive relief against another Party from any judicial or administrative authority pending the resolution of a dispute by arbitration. MAGNACHIP acknowledges that a violation of proprietary rights of AATI would result in
irreparable injury entitling MAGNACHIP to injunctive relief. 
  
 12.12 Modification and Waiver. No amendment, waiver or any other change in any term or condition of this Agreement will be valid or binding unless mutually agreed to in writing by both Parties.
The failure of a Party to enforce any provision of this Agreement, or to require performance by the other Party, will not be construed to be a waiver, or in any way affect the right of either Party to enforce such provision thereafter. 

 

 -19- 

 12.13 Severability. If a court or other body of competent
jurisdiction finds, or the Parties mutually believe, any provision of this Agreement, or portion thereof, to be invalid or unenforceable, such provision will be enforced to the maximum extent permissible so as to effect the intent of the Parties,
and the remainder of this Agreement will continue in full force and effect. The Parties shall negotiate in good faith an enforceable substitute provision that most nearly achieves the intent and economic effect of such invalid or unenforceable
provision. 
  
 12.14 Favored
Pricing Terms. The price charged AATI and its customers for any MAGNACHIP Licensed Products shall always be MAGNACHIP’s lowest price charged any customer for such MAGNACHIP Licensed Product (or other products which are most similar or
substantially equivalent to the manufacturing, function, and electrical specification of said MAGNACHIP Licensed Products) regardless of any special terms, conditions, rebates, or allowances of any nature. If MAGNACHIP provides MAGNACHIP
Licensed Products or other technologies that are related to the AATI Discrete Technology or AATI Intellectual Property to any customer at a price less than provided for herein, MAGNACHIP shall adjust its price charged to AATI to the lower price for
any un-invoiced product and for all outstanding and future invoices for such product. AATI shall have the right to audit MAGNACHIP’s compliance with this provision by conducting an Audit in accordance with Section 5.3 of this
Agreement. 
  
 12.15
Entire Agreement. The terms and conditions of this Agreement, including all exhibits hereto, constitute the entire agreement between the Parties and supersede all previous agreements and understandings, whether oral or written,
between the Parties hereto with respect to the subject matter hereof. 
  
 12.16 Authority 
  
 (i) By AATI. Execution or modification of this License Agreement requires the approval of the President (or the CEO) and the Chief Technical Officer (CTO) of AATI. No other employee of AATI can approve
modifications to the Intellectual Property licenses contained herein. 
  
 (ii) By MAGNACHIP Execution or modification of this License Agreement requires the approval of a representative, officer or director of MAGNACHIP. No other employee of MAGNACHIP can approve modifications
to the Intellectual Property licenses contained herein. 
  
 12.17 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be an original, and all of which taken together shall constitute a single instrument.

  

 -20- 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the date and the year first herein
above written. 
  

			
	MagnaChip Semiconductor, Ltd :
		
	 Signature:
	 	 
		
	 Name:
	 	 Youm Huh

		
	 Title:
	 	President and Chief Executive Officer (CEO)
		
	 Address:
	 	891 Daechi-dong Kangnam-gu, Seoul, South Korea, 135-738
		
	 Facsimile:
	 	 82-2-3459-3666

	
	Advanced Analogic Technologies, Inc.:
		
	Signature:	 	 
		
	 Name:
	 	 Richard K. Williams

		
	 Title:
	 	President, Chief Executive Officer (CEO) and Chief Technical Officer (CTO)
		
	 Address:
	 	830 E. Arques Ave. Sunnyvale, California 94085
		
	 Facsimile:
	 	 (408) 737-4611

  

 -21-

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