Document:

Service Agreement between MagnaChip Semiconductor Ltd. and Dale Lindly

 Exhibit 10.23 
  
 SERVICE AGREEMENT 
  
 THIS SERVICE AGREEMENT (“Agreement”) is executed by and between MagnaChip Semiconductor, Ltd., a Korean limited liability company (the
“Company”), and Dale Lindly, an individual (the “Officer”), effective as April 14, 2005. 
  
 WITNESSETH: 
  
 WHEREAS, the Company desires to have the benefits of the Officer’s knowledge and experience as a full-time officer, to employ the Officer in
the manner hereinafter specified, and to make provision for payment of reasonable compensation to the Officer for such services, and the Officer is willing to be employed by the Company to perform the duties incident to such employment upon the
terms and conditions hereinafter set forth. 
  
 NOW,
THEREFORE, in consideration of the foregoing premises, the mutual covenants, terms and conditions set forth herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Officer
hereby agree as follows: 
  

	 	1.	EFFECTIVENESS OF SERVICE AGREEMENT 

  
 This Agreement shall constitute a binding obligation of the Officer and the Company as of April 14, 2005 (the “Effective Date”). 
  

	 	2.	EMPLOYMENT AND DUTIES 

  
 (a) General. The Company shall hereby employ the Officer as Senior Vice President Finance, Corporate Controller, and the Officer agrees upon the
terms and conditions herein set forth to be employed by the Company. The Officer shall diligently perform such duties and have such responsibilities as the Board of Directors of the Company may establish from time to time, and the Officer shall
report to the Executive Vice President, Strategic Operations and Chief Financial Officer of the Company. 
  
 (b) Term. Unless terminated at an earlier date in accordance with Section 4 below, the term of the Officer’s employment with the Company
hereunder shall be for a term commencing on the Effective Date and ending on the third anniversary of the Effective Date (the “Initial Term”). Thereafter, unless terminated at an earlier date in accordance with Section 4 below, the
Initial Term and each Additional Term shall be automatically extended for successive one-year periods (each, an “Additional Term”), in each case, commencing upon the expiration of the Initial Term or the then-current Additional
Term, unless at least 90 days prior to the expiration of such term, either party gives written notice to the other party of its intention not to extend the term of the Officer’s employment. 
  
 (c) Services. The Officer shall well and faithfully serve the Company,
and shall devote all of the Officer’s business time and attention to the performance of the duties of such employment and the advancement of the best interests of the Company and shall not, directly or indirectly, render services to any other
person or organization for which the Officer receives 

  

 
compensation without the prior written approval of the Company. The Officer hereby agrees to refrain from engaging in any activity that does, shall or could
reasonably be deemed to conflict with the best interests of the Company. 
  
 (d) Location of Employment. Once the Officer is legally qualified to work in Korea, the Officer’s place of employment shall be at the Company’s facility located in Seoul, Korea, but the Officer shall
travel to the extent and to the places necessary for the performance of the Officer’s duties to the Company. 
  

	 	3.	COMPENSATION AND OTHER BENEFITS 

  
 Subject to the provisions of this Agreement, including, without limitation, the termination provisions contained in Section 4 below, the Company shall pay
and provide the following compensation and other benefits to the Officer as compensation for all services rendered hereunder: 
  
 (a) Salary. The Company shall pay the Officer a base salary at the rate of US$200,000.00 per annum (the “Salary”), payable to the
Officer in accordance with the standard payroll practices of the Company as are in effect from time to time, less all such deductions or withholdings required by applicable law. The Salary is payable in U.S. dollars to a bank account designated from
time to time by the Officer. Annual salary increases will be determined by the compensation committee of the Board of Directors of the Company (the “Committee”) in accordance with the Committee’s policies and procedures.

  
 (b) Annual Incentive. The Officer shall be eligible to
earn an annual cash bonus in accordance with the annual short-term incentive plan approved annually by the compensation committee of the Company (the “Annual Incentive”). The Annual Incentive shall be a target of 50% of the
Officer’s annual salary, and is guaranteed at an amount equal to 50% of the Officer’s annual salary for the first year of the Officer’s service. The Officer may elect to have the guaranteed first-year bonus paid quarterly in arrears.

  
 (c) Expenses. The Company shall pay or reimburse the
Officer for all reasonable out-of-pocket expenses incurred by the Officer in connection with the Officer’s employment hereunder upon submission of appropriate documentation or receipts in accordance with the policies and procedures of the
Company as are in effect from time to time. 
  
 (d)
Benefits. The Officer shall be eligible to participate in or purchase as necessary and be reimbursed for medical, disability and life insurance plans and to receive other benefits applicable to senior officers of the Company generally in
accordance with the terms of such plans as are in effect from time to time. The Officer shall be entitled to the following expatriate/repatriation benefits: 
  
 (i) Visas and Work Permits. The Company will provide the necessary services and cover the cost to obtain the necessary visas and/or work
permits to enable the Officer and the Officer’s family to legally work and stay in Korea for the duration that the Officer is assigned to perform services in Korea. 
  

 2 

 (ii) Air Travel. The Company will pay for air flight expenses for the Officer to travel
to Seoul, Korea, to begin the Officer’s expatriate assignment. Should the Officer’s family decide to join him and move to Seoul, Korea, at any time during the term of this Agreement, the Company will pay for their air flight expenses from
the U.S. to Korea. 
  
 (iii) Shipment of
Household Goods. The Company shall reimburse the Officer reasonable costs to move the Officer’s household goods via surface transport from the U.S. to Korea and, upon the termination of this Agreement for any reason other than as set forth in
Section 4(a) below, reasonable costs to move the Officer’s household goods via surface transport from Korea back to the U.S. 
  
 (iv) Temporary Housing. The Company shall reimburse the Officer for reasonable costs for furnished temporary housing in Korea for up to 30
days upon the Officer’s arrival in Korea. A reasonable per diem shall be included if the temporary housing does not include cooking facilities. 
  
 (v) Host Country Housing. The Company shall reimburse the Officer for reasonable housing expenses in Korea for rent on a single home or
apartment up to a maximum of US$8,000 per month. 
  
 (vi) Tax Treatment. The Company shall provide for tax equalization (to U.S. federal and California state) commencing in the tax year when the expatriate assignment begins through the end of the tax year of repatriation (regardless of
whether the Officer is still employed by the Company at that time). The Officer shall minimize U.S. taxes as permitted by Section 901 and 911 of the Internal Revenue Code. For the avoidance of doubt, this provision shall be interpreted to mean that
the Officer’s total tax liability shall not be higher than it would have been had the Officer remained in the U.S. The Company will provide tax preparation services to assist the Officer with the preparation of the Officer’s personal
income tax returns for the U.S. and Korea. 
  
 (e)
Vacation. The Officer shall be entitled to annual vacation of three weeks per year and, while serving in an expatriate status in Korea, an additional two weeks of home leave per year, inclusive during the first year of employment only of
reasonable flight expenses for one trip to the U.S. or to Korea, as the case may be, per twelve-month period for the Officer and the Officer’s family. 
  
 (f) Equity. The Officer is granted options to purchase 75,000 MagnaChip Semiconductor LLC common units (the “Option”) pursuant to
the MagnaChip Semiconductor LLC Equity Incentive Plan at a purchase price equal to $1.00 per common unit. Twenty-five percent of the Option will vest on the first anniversary of the Option grant date and an additional 6.25% of the Option will vest
on the last day of each calendar quarter thereafter. Other terms of the Option shall be as determined by the Board of Directors of MagnaChip Semiconductor LLC but shall not be less favorable than the terms of options granted to other Company
employees. 
  
 (g) Loan Forgiveness. Effective as of the
closing of the Company’s acquisition of IC Media Corporation, a California corporation (“ICM”), the Company shall, as successor to ICM, 

  

 3 

 
immediately cancel the outstanding balance (principal and accrued but unpaid interest) on that certain promissory note of the Officer payable to ICM in the
original principal amount of $115,000.00. The Officer will be responsible for any taxes accruing or arising from the forgiveness of the promissory note. 
  

(h) Indemnification. To the fullest extent permitted by law and the governing documents of the Company, the Company will indemnify and hold the
Officer harmless from and against all losses, costs, and expenses arising from or relating to the Officer’s services as an officer or employee of the Company. 
  

	 	4.	TERMINATION OF EMPLOYMENT 

  
 Subject to the notice and other provisions of this Section 4, the Company shall have the right to terminate the Officer’s employment hereunder, at
any time for any reason or for no stated reason, and the Officer shall have the right to resign, at any time for any reason or for no stated reason. 
  
 (a) Termination for Cause or Resignation. 
  
 (i) If, prior to the expiration of the Initial Term or any Additional Term, the Officer’s employment is terminated by the Company for
Cause or if the Officer resigns for any reason other than Good Reason from the Officer’s employment hereunder, the Officer shall be entitled to payment of (A) the Officer’s Salary accrued up to and including the date of termination or
resignation, and any unreimbursed expenses. Except to the extent required by the terms of the benefits provided under Section 3(f) or applicable law, the Officer shall have no right under this Agreement or otherwise to receive any other compensation
or to participate in any other plan, program or arrangement after such termination or resignation of employment with respect to the year of such termination or resignation and later years. The treatment of any outstanding options held by the Officer
as of the date of the termination shall be governed by the agreements and equity incentive plans pursuant to which the options were granted. 
  
 (ii) Termination for “Cause” shall mean a termination of the Officer’s employment with the Company because of (A) a
failure by the Officer to substantially perform the Officer’s customary duties with the Company in the ordinary course (other than such failure resulting from the Officer’s incapacity due to physical or mental illness or any such actual or
anticipated failure after the Officer provides written notification to the Company of resignation of employment for Good Reason under this Agreement) that, if susceptible to cure, has not been cured as determined by the Company within 30 days after
a written demand for substantial performance is delivered to the Officer by the Company, which demand specifically identifies the manner in which the Company believes that the Officer has not substantially performed the Officer’s duties; (B)
the Officer’s gross negligence, intentional misconduct or fraud in the performance of the Officer’s employment; (C) the Officer’s indictment for a felony or for a crime involving fraud or dishonesty; (D) a judicial determination that
the Officer committed fraud or dishonesty against any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust, governmental authority or other 

  

 4 

 
entity (each, a “Person”); or (E) the Officer’s material violation of this Agreement or of one or more of the Company’s policies
applicable to the Officer’s employment as may be in effect from time to time. 
  
 (iii) Termination of the Officer’s employment for Cause shall be communicated by delivery to the Officer of a written notice from the
Company stating that the Officer will be terminated for Cause, specifying the particulars thereof and the effective date of such termination. If the Company provides such written notice to the Officer, to the extent the Officer is being terminated
for a failure to perform the Officer’s customary duties, as described in Section 4(a)(ii)(A) above, the Officer shall have 30 days from the date of receipt of such notice to effect a cure and, upon cure thereof by the Company, such failure to
perform shall no longer constitute Cause for purposes of this Agreement. 
  
 (iv) The date of a resignation other than for Good Reason by the Officer shall be the date specified in a written notice of resignation from the Officer to the Company provided that the Officer shall provide at least
60 days’ advance written notice of the Officer’s resignation other than for Good Reason. 
  
 (b) Involuntary Termination. 
  
 (i) If, prior to the expiration of the Initial Term or any Additional Term, the Company terminates the Officer’s employment for any
reason other than Disability, death or Cause or if the Officer resigns from the Officer’s employment for Good Reason (such termination or resignation being hereinafter referred to as an “Involuntary Termination”), the Officer
shall be entitled to (A) payment of the Officer’s Salary accrued up to and including the date of the Involuntary Termination, (B) the dollar value of all accrued and unused vacation benefits based upon the Officer’s most recent level of
Salary, (C) any Annual Incentive amount actually earned pursuant to Section 3(b) for one or more fiscal years but not previously paid to the Officer, (D) payment of any unreimbursed expenses, and (E) severance (the “Severance”),
consisting of: 
  
 (1) continuation of the
Officer’s Salary, at the rate in effect on the date of the Involuntary Termination, for a period of six months, commencing on the date next following the date of the Involuntary Termination; 
  
 (2) six months’ Company-paid benefits continuation for
the Officer and the Officer’s eligible dependents; and 
  
 (3) payment of the Annual Incentive, in a prorated amount based on the number of days the Officer was actually employed during the applicable plan year and on deemed satisfactory performance by the Officer, but based
on actual performance objectives satisfied by the Company, payable in a lump sum payment within 30 days after the date that the Annual Incentive is normally paid under the terms of the plans and policies of the Company (but in no event more than 12
months following the date of the Involuntary Termination); 
  

 5 

 provided, however, that the Severance payable to the Officer pursuant to this section shall be reduced to the
extent that the Company makes any severance payments pursuant to the Korean Commercial Code or any other statute. 
  
 (ii) Resignation for “Good Reason” shall mean resignation by the Officer because of, unless the Officer otherwise consents in
writing, one or more of the following circumstances: 
  
 (1) a reduction in the Officer’s overall pay package of more than 15% that is not applied to all officers at the Officer’s seniority level, provided that, so long as the Annual Incentive target is up to 50% or more of the
Officer’s Salary, any decrease in the amount of the Annual Incentive paid to the Officer shall not be taken into account in calculating a decrease in the overall pay package; 
  
 (2) the nature or status of the Officer’s authorities, duties or responsibilities has been materially
and adversely altered; 
  
 (3) a requirement that
the Officer move the Officer’s principal place of employment outside of Korea or an agreed-upon location in the United States. 
  
 (iii) Resignation for Good Reason shall be communicated by delivery to the Company of a written notice from the Officer stating that the
Officer will be resigning for Good Reason, specifying the particulars thereof and the effective date of such resignation. If the Officer provides such written notice to the Company, the Company shall have 30 days from the date of receipt of such
notice to effect a cure, as reasonably determined by the Company, of the material breach described therein and, upon cure thereof by the Company, such material breach shall no longer constitute Good Reason for purposes of this Agreement. 

 
 (iv) The date of termination of employment without Cause
shall be the date specified in a written notice of termination to the Officer. The date of resignation for Good Reason shall be the date specified in a written notice of resignation from the Officer to the Company; provided, however, that no
such written notice shall be effective unless the cure period specified in Section 4(b)(iii) above has expired without the Company having corrected the event or events subject to cure. 
  
 (c) Termination Due to Disability. In the event of the Officer’s Disability, the Company shall be entitled to
terminate the Officer’s employment. In the case that the Company terminates the Officer’s employment due to Disability, the Officer shall be entitled to (i) payment of the Officer’s Salary up to and including the date of termination,
(ii) the dollar value of all accrued and unused vacation benefits based upon the Officer’s most recent level of Salary, (iii) any Annual Incentive amount actually earned pursuant to Section 3(b) for one or more fiscal years but not previously
paid to the Officer, (iv) payment of any unpaid expense reimbursements, and (v) payment of the Annual Incentive, in a prorated amount based on the number of days the Officer was actually employed during the applicable plan year, based on actual
performance objectives satisfied by the Company, payable in a lump sum payment within 30 days of the date that the Annual Incentive is normally paid under the terms of the plans and policies of the 

  

 6 

 
Company. As used in this Section 4(c), the term “Disability” shall mean that the Company reasonably determines that due to physical or
mental illness or incapacity, whether total or partial, the Officer is substantially unable to perform the Officer’s duties hereunder for a period of 180 consecutive days or shorter periods aggregating 180 days during any period of 365
consecutive days. The Officer shall permit a licensed physician agreed to by the Company and the Officer (or, in the event that the Company and the Officer cannot agree, by a licensed physician agreed upon by a physician selected by the Company and
a physician selected by the Officer) to examine the Officer from time to time prior to the Officer’s being determined to be Disabled, as reasonably requested by the Company, to determine whether the Officer has suffered a Disability hereunder.

  
 (d) Death. In the event of the Officer’s death
while employed by the Company, the Officer’s estate or named beneficiary shall be entitled to (i) payment of the Officer’s Salary up to and including the date of termination, (ii) the dollar value of all accrued and unused vacation
benefits based upon the Officer’s most recent level of Salary, (iii) any Annual Incentive amount actually earned pursuant to Section 3(b) for one or more fiscal years but not previously paid to the Officer, (iv) payment of any unpaid expense
reimbursements, and (v) payment of the Annual Incentive, in a prorated amount based on the number of days the Officer was actually employed during the applicable plan year payable in a lump sum payment within 30 days of the date that the Annual
Incentive is normally paid under the terms of the plans and policies of the Company. 
  

	 	5.	COVENANTS 

  
 (a) Confidential Information. As an officer of the Company, the Officer acknowledges that the Officer has had and will have access to confidential
or proprietary information or both relating to the business of, or belonging to, the Company or any affiliates or third parties including, but not limited to, proprietary or confidential information, technical data, trade secrets, or know-how in
respect of research, product plans, products, services, customer lists, customers, markets, computer software (including object code and source code), data and databases, outcomes research, documentation, instructional material, developments,
inventions, processes, formulas, technology, designs, drawings, engineering, hardware, configuration information, models, manufacturing processes, sales information, cost information, business plans, business opportunities, marketing, finances or
other business information disclosed to the Officer in any manner including by drawings or observations of parts or equipment, etc., all of which have substantial value to the Company (collectively, “Confidential Information”).

  
 (i) The Officer agrees that while employed
with the Company and after the termination of the Officer’s employment for any reason, the Officer shall not: (A) use any Confidential Information except in the course of the Officer’s employment by the Company; or (B) disclose any
Confidential Information to any other person or entity, except to personnel of the Company utilizing it in the course of their employment by the Company or to persons identified to the Officer in writing by the Company, without the prior written
consent of the Company. 
  
 (ii) While the
Officer is employed with the Company and after the termination of the Officer’s employment for any reason, the Officer shall respect and adhere to any non-disclosure, confidentiality or similar agreements to which the Company or any of its

  

 7 

 
affiliates are, or during the period of the Officer’s employment by the Company, become, a party or subject. Upon the request of the Officer, the
Company shall disclose to the Officer any such agreements to which it is a party or is subject. 
  
 (iii) The Officer hereby confirms that all Confidential Information and “Company Materials” (as hereinafter defined) are and
shall remain the exclusive property of the Company. Immediately upon the termination of the Officer’s employment for any reason, or during the Officer’s employment with the Company upon the request of the Company, the Officer shall return
all Company Materials, or any reproduction of such materials, apparatus, equipment and other physical property. For purposes of this Agreement, “Company Materials” are documents or other media or tangible items that contain or embody
Confidential Information or any other information concerning the business, operations or plans of the Company, whether such documents have been prepared by the Officer or others. 
  
 (b) Disclosure of Previously Acquired Information to Company. The Officer hereby agrees not to disclose to the
Company, and not to induce the Company to utilize, any proprietary information or trade secrets of any other party that are in the Officer’s possession, unless and to the extent that the Officer has authority to do so. 
  
 (c) Non-Competition. While the Officer is employed by the Company and,
after the Officer’s termination of employment for any reason, until the earlier of (i) the first anniversary of the date of termination and (ii) the third anniversary of the Effective Date, the Officer (and any entity or business in which the
Officer or any affiliate of the Officer has any direct or indirect ownership or financial interest) shall not, except with the prior written consent of the Board of Directors, directly or indirectly, own any interest in, operate, join, control or
participate as a partner, director, principal, officer, or agent of, enter into any employment of, act as a consultant to, or perform any services for any business which at any time during such period is in competition with any business in which the
Company, or any of its affiliates, is planning to be engaged in the near future or is engaged on or prior to the termination of Officer’s employment by the Company, anywhere in the world. This provision shall not be construed to prohibit the
ownership by the Officer of less than 2% of any class of securities of any corporation that has a class of securities registered pursuant to the Securities Exchange Act of 1934, as amended, so long as the Officer remains a passive investor in such
entity. 
  
 (d) No Solicitation. While the Officer is
employed by the Company and for a two-year period thereafter, the Officer shall not, directly or indirectly, for the Officer’s own account or for the account of any other Person (i) solicit, employ, retain as a consultant, interfere with or
attempt to entice away from the Company or any of its affiliates, or any successor to any of the foregoing, any individual who is, has agreed to be or within one year of such solicitation, employment, retention, interference or enticement has been,
employed or retained by the Company or any of its subsidiaries or any successor to any of the foregoing or (ii) solicit or attempt to solicit the trade of any Person which, at the time of such solicitation, is a customer of the Company or its
affiliates, or any successor to any of the foregoing, or which the Company or its affiliates, or any successor to any of the foregoing, is undertaking reasonable steps to procure as a customer at the time of or immediately preceding the termination
of Officer’s employment 

  

 8 

 
by the Company; provided, however, that this limitation shall only apply to any product or service which is in competition with a product or service of the
Company or its affiliates. 
  
 (e) Non-Disparagement. The
Officer and the Company agree that at any time during the Officer’s employment with the Company or at any time thereafter, neither the Company nor the Officer shall make, or cause or assist any other person to make, any statement or other
communication which impugns or attacks, or is otherwise critical of, the reputation, business or character of the other, any subsidiary or any of their respective officers, directors, employees, products or services. The foregoing restrictions shall
not apply to any statements that are made truthfully in response to a subpoena or other compulsory legal process. 
  
 (f) Enforcement. The Officer hereby acknowledges that the Officer has carefully reviewed the provisions of this Agreement and agrees that the
provisions are fair and equitable. However, in light of the possibility of differing interpretations of law and change in circumstances, the parties hereto agree that if any one or more of the provisions of this Agreement is determined by a court of
competent jurisdiction to be invalid, void or unenforceable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable or enforceable under such circumstances shall be substituted for
the stated period, scope or area. 
  

	 	6.	GENERAL PROVISIONS 

  
 (a) Tax Withholding. All amounts paid to the Officer hereunder shall be subject to all applicable federal, state and local wage withholding.

  
 (b) Notices. Any notice hereunder by either party to
the other shall be given in writing by personal delivery, or certified mail, return receipt requested, or (if to the Company) by telex or facsimile, in any case delivered to the applicable address set forth below: 
  

			
	(i) If to the Company:	  	MagnaChip Semiconductor, Ltd.
891 Daechi-dong, Kangnam-gu
Seoul 135-738 Korea
Fax: 82-2-3459-3867
Attn: General Counsel
		
	(ii) If to the Officer:	  	at the last known residential address on the personnel records of the Company;

  
 or to such other persons or other
addresses as either party may specify to the other in writing. 
  
 (c) Assignment; Assumption of Agreement. This Agreement shall not be assignable, in whole or in part, by either party without the prior written consent of the other party, except as provided herein. The Company may assign its rights
and obligations under this Agreement to any corporation or other business entity (i) which is an affiliate of the Company, (ii) with which the Company may merge or consolidate, or (iii) to which the Company may sell or transfer all or substantially
all of its assets or 50% or more of the voting stock entitled to elect the members of the Board of Directors of the Company, provided that in each case such successor company expressly assumes the Company’s obligations hereunder in writing.
After any such assignment 

  

 9 

 
by the Company, the Company shall be discharged from all further liability hereunder and such assignee shall thereafter be deemed to be the
“Company” for purposes of all terms and conditions of this Agreement, including this Section 6(c). For purposes of this Section 6(c), “affiliate” means any company that the Company controls, that controls the Company, or that is
under common control with the Company. 
  
 (d) Amendment.
No provision of this Agreement may be amended, modified, waived or discharged unless such amendment, modification, waiver or discharge is agreed to in writing and signed by the parties. No waiver by either party hereto at any time of any breach by
the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent
time. 
  
 (e) Severability. If any term or provision hereof
is determined to be invalid or unenforceable in a final court or arbitration proceeding, (i) the remaining terms and provisions hereof shall be unimpaired and (ii) the invalid or unenforceable term or provision shall be deemed replaced by a term or
provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 
  
 (f) Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, and the venue
for all disputes arising out of this Agreement shall be the state or federal courts located therein. 
  
 (g) Entire Agreement. This Agreement contains the entire agreement of the Officer, the Company and any predecessors or affiliates thereof with
respect to the subject matter hereof and all prior agreements and negotiations are superseded hereby as of the date of this Agreement. 
  
 (h) Counterparts. This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed an original, but both such
counterparts shall together constitute one and the same document. 
  
 [Signature Page Follows] 
  

 10 

  
 IN WITNESS WHEREOF,
the Company and Officer have executed this Agreement effective as of the Effective Date. 
  

			
	MAGNACHIP SEMICONDUCTOR, LTD.
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	OFFICER
	
	 
	 Dale Lindly

  
 [Signature Page to
Service Agreement] 
  

 11MagnaChip LLC Equity Incentive Plan

 Exhibit 10.24 
  

  
 MAGNACHIP SEMICONDUCTOR LLC 
 EQUITY INCENTIVE PLAN 
  

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

	1.	DEFINITIONS. 

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

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

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

 - 2 - 

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

 - 3 - 

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

  

	2.	EFFECTIVE DATE AND TERMINATION OF PLAN. 

  
 The effective date of the Plan is October 6, 2004. The Plan shall terminate on, and no Awards shall be granted hereunder on or after, October 6, 2014, the
10 year anniversary of the effective date of the Plan; provided, however, that the Board may at any time prior to that date terminate the Plan. However, the termination of the Plan shall not affect any Awards granted prior to such termination.

  

	3.	ADMINISTRATION OF PLAN. 

  
 (a) The Plan shall be administered by the Committee, which shall have full power and authority to interpret the Plan. The Committee shall have full
authority to determine to whom Awards will be granted, the type and amount of Awards to be granted, the terms and conditions of Awards granted under the Plan and the terms of Award Agreements to be entered into with Holders. 
  
 (b) The Award Agreement shall contain such terms, provisions and conditions
not inconsistent herewith as determined by the Committee. The Holder shall take whatever additional actions and execute whatever additional documents the Committee may in its reasonable judgment deem necessary or advisable in order to carry out or
effect one or more of the obligations or restrictions imposed on the Holder pursuant to the express provisions of the Plan and the Award Agreement. 
  

 - 4 - 

	4.	ELIGIBILITY. 

  
 Any employee, consultant or non-employee director of the Company or a Subsidiary who is designated by the Committee as eligible to participate in the Plan
shall be eligible to receive an Award under the Plan. 
  

	5.	SHARES AND UNITS SUBJECT TO THE PLAN. 

  
 (a) Subject to adjustments as provided in Section 12, as of the effective date of the Plan, the maximum number of Common Units available for grant under
the Plan shall be 5,000,000 and the maximum number of Common Units available for grant under the Plan to any employee, consultant or non-employee director in any one calendar year shall be 2,500,000. Any Common Units that have been reserved for
distribution in payment for an Award but are later forfeited or for any other reason are not payable under the Plan may again be made the subject of Awards under the Plan. 
  
 (b) Upon issuance of an Award under the Plan, the Holder and any Successor of the Holder agrees to be bound by the LLC
Agreement to the same extent as would a “Member,” as that term is defined in the LLC Agreement, and to execute a Joinder to the LLC Agreement in the form of Exhibit B thereto. Without limiting the generality of the foregoing, each Holder
agrees to any transfer restrictions, drag-along rights or other obligations delineated in the LLC Agreement. Additionally, any amendment to the LLC Agreement that effects a provision contained herein shall be deemed to be an amendment to the Plan.

  
 (c) The Holder and any Successor of the Holder agrees to be
bound by the provisions in Annex I hereto regarding required transfers. 
  
 (d) The certificates (if any) for Common Units issued hereunder may include any legend which the Committee deems appropriate to reflect any restrictions on transfer hereunder, under the Securityholders’ Agreement, the LLC Agreement or
under the Award Agreement, or as the Committee may otherwise deem appropriate. 
  

	6.	OPTIONS. 

  
 Options give an employee, consultant or non-employee director the right to purchase a specified number of shares of Common Units from the Company for a
specified time period at a specified price. Options issued under the Plan are Non-Qualified Options. The grant of Options shall be subject to the following terms and conditions: 
  
 (a) Option Grants: Options shall be evidenced by an Option Award Agreement. Such agreement shall conform to the requirements
of the Plan, and may contain such other provisions as the Committee shall deem advisable. 
  
 (b) Option Price: Unless otherwise determined by the Committee and provided for in an Option Award Agreement, the Exercise Price of an Option shall be not less than the Fair Market Value of a Common Unit on the date
of grant. 
  

 - 5 - 

 (c) Term of Options: The Option Award Agreements shall specify when an Option may be exercisable and the
terms and conditions applicable thereto. The term of an Option shall in no event be greater than ten years. Unless earlier expired, forfeited or otherwise terminated, each Option shall expire in its entirety upon the day after the last day of its
term. The Option shall also expire, be forfeited and terminate at such times and in such circumstances as otherwise provided hereunder, in the LLC Agreement, in the Securityholders’ Agreement or under the Option Award Agreement. 
  
 (d) Vesting: Each Option, to the extent that the Holder has not had a
Termination of Service and the Option has not otherwise lapsed, expired, terminated or been forfeited, shall vest according to the schedule set forth in the Option Award Agreement. No Option shall become exercisable until such Option becomes vested.

  
 (e) No Rights as Securityholder: Except as required by law,
the Holder shall not have any rights as a securityholder with respect to any Units covered by the Options granted under the Plan until such time as the Units issuable upon exercise of such Options have been so issued. 
  
 (f) Restrictions on Transferability: Options may not be pledged, assigned or
transferred for any reason during the Holder’s lifetime, and any attempt to do so shall be void and the relevant Option shall be forfeited. The Successors of the Holder shall, in all cases, be subject to the provisions of the Option Award
Agreement between the Company and the Holder. Notwithstanding the generality of the foregoing, the Committee may (but need not) permit other transfers of Options (provided such transfers otherwise conform to the requirements of the LLC Agreement and
the provisions set forth in Annex I). 
  
 (g) Effect
of Termination of Service on Outstanding Options: 
  
 (i) Termination of Service by Reason of Death or Disability: Unless otherwise provided by the Committee at or after grant, if a Holder incurs a Termination of Service due to death or Disability, any unexercised Option granted to the Holder
may thereafter be exercised by the Holder (or, where appropriate, the Successor Holder), to the extent it was exercisable at the time of termination or on such accelerated basis as the Committee may determine at or after grant, for a period of 12
months or such shorter term as determined by the Committee from the date of such Termination of Service or until the expiration of the stated term of the Option, whichever period is shorter.  
  
 (ii) Termination Not for Cause: Unless otherwise
provided by the Committee at or after grant, if a Holder incurs a Termination of Service by the Company or the Subsidiary not for Cause, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate,
the Successor Holder), to the extent it was exercisable at the time of termination or on such accelerated basis as the Committee may determine at or after grant, for a period of 60 days or such shorter term as determined by the Committee from the
date of such Termination of Service or until the expiration of the stated term of the Option, whichever period is shorter. 
  

 - 6 - 

 (iii) Termination for Cause or Other Reason: Unless otherwise provided by the Committee
at or after grant, if a Holder incurs a Termination of Service by the Company or the Subsidiary for Cause, or otherwise terminates for any reason not specified in this Section (including a voluntary termination), all unexercised Options awarded to
the Holder shall terminate on the date of such termination. 
  
 (h) Exercise of Option: Subject to vesting and other restrictions provided for hereunder or otherwise imposed in accordance herewith, an Option may be exercised, and payment in full of the aggregate Exercise Price made, by a Holder (or,
where appropriate, the Successor Holder) only by notice (in the form prescribed by the Committee) to the Company specifying the number of Common Units to be purchased. Without limiting the scope of the Committee’s discretion hereunder, the
Committee may impose such other restrictions on the exercise of Options (whether or not in the nature of the foregoing restrictions) as it may deem necessary or appropriate. 
  
 (i) Payment of Option Price: The aggregate Exercise Price shall be paid in full upon the exercise of the Option. Payment
must be made by one of the following methods: 
  
 (i) cash or a certified or bank cashier’s check; 
  
 (ii) if approved by the Committee in its sole discretion, Common Units previously owned and held for a period of at least six months, having an aggregate Fair Market Value on the date of exercise equal to the
aggregate Exercise Price; 
  
 (iii) with consent
of the Committee, which may be granted or withheld in its sole discretion, by delivery of a properly executed notice of option exercise together with irrevocable written consent to the Committee to withhold that number of Common Units (rounded up to
the nearest whole unit) the Fair Market Value of which is equal to the sum of the Exercise Price and the federal, state or local income taxes legally required to be withheld with respect to the exercise of such Option and to deliver to the Holder
the net number of whole Common Units remaining after such withholding, plus cash equal to the Fair Market Value of any fractional Unit eliminated by rounding; or 
  
 (iv) by any combination of such methods of payment or any other method acceptable to the Committee in its
discretion. 
  

	7.	APPRECIATION RIGHTS. 

  
 SARs give an employee, consultant or non-employee director the right to receive, upon exercise of the SAR, the increase in the Fair Market Value of a
specified number of Common Units from the date of grant of the SAR to the date of exercise. The grant of SARs shall be subject to the following terms and conditions: 
  
 (a) SARs are rights to receive a payment in cash or Common Units as selected by the Committee. The value of these rights,
which are determined by the appreciation in the Common Units subject to the SAR, shall be evidenced by a SAR Award Agreement. Such agreement shall conform to the requirements of the Plan and may contain such other provisions as the Committee shall
deem advisable. 
  

 - 7 - 

 (b) The base price of a SAR shall be not less than 100% of the Fair Market Value of the Common Units
subject to the SAR on the date of grant. 
  
 (c) An SAR shall
entitle the recipient to receive a payment equal to the excess of the Fair Market Value of the Common Units covered by the SAR on the date of exercise over the base price of the SAR. Such payment may be in cash, in Common Units, or in any
combination, as the Committee shall determine. 
  
 (d) Term of
SARs: The SAR Award Agreements shall specify when an SAR may be exercisable and the terms and conditions applicable thereto. The term of an SAR shall in no event be greater than ten years. Unless earlier expired, forfeited or otherwise terminated,
each SAR shall expire in its entirety upon the day after the last day of its term. The SAR shall also expire, be forfeited and terminate at such times and in such circumstances as otherwise provided hereunder, in the LLC Agreement, in the
Securityholders’ Agreement or under the SAR Award Agreement. 
  
 (e) Vesting: Each SAR, to the extent that the Holder has not had a Termination of Service and the SAR has not otherwise lapsed, expired, terminated or been forfeited, shall vest according to the schedule set forth in the SAR Award
Agreement. No SAR shall become exercisable until such SAR becomes vested. 
  
 (f) SARs shall be subject to the same terms and conditions applicable to Options as stated in Sections 6(f) and 6(g) above. Additionally, SARs shall also be subject to such other terms and conditions not consistent
with the Plan as shall be determined by the Committee. 
  

	8.	RESTRICTED UNITS. 

  
 An Award of Restricted Units is an issuance of a specified number of Common Units to an employee, consultant or non-employee director, which shares are
subject to forfeiture upon the happening of specified events. In the Committee’s sole discretion, an Award of Restricted Units may, but need not be, conditioned upon an Option exercise or payment of a base price in exchange for issuance of such
Award. Such an Award shall be subject to the following terms and conditions: 
  
 (a) An Award of Restricted Units shall be evidenced by a Restricted Unit Agreement. Such agreement shall conform to the requirements of the Plan and may contain such other provisions as the Committee shall deem
advisable. 
  
 (b) Unless otherwise provided by the Board or the
Committee, upon a determination of the number of Restricted Units to be distributed to the Holder, the Committee shall direct that a certificate or certificates representing the number of Common Units be issued to the Holder with the Holder
designated as the registered owner. Such certificate(s), if any, representing such shares shall be legended as to sale, transfer, assignment, pledge or other encumbrances during the Restriction Period and deposited by the Holder, with the Company,
to be held in escrow during the Restriction Period.  
  

 - 8 - 

 (c) During the Restriction Period the Holder shall have the right to receive dividends from and to vote
the Restricted Units.  
  
 (d) The Restricted Unit
Agreement shall specify the duration of the Restriction Period and the performance, employment, service or other conditions (including Termination of Service on account of death, Disability or other cause) under which the Restricted Units may be
forfeited to the Company. At the end of the Restriction Period the restrictions imposed hereunder shall lapse with respect to the number of Restricted Units as determined by the Committee, and the legend shall be removed and such number of Units
delivered to the Holder (or, where appropriate, the Holder’s legal representative). The Committee may, in its sole discretion, modify or accelerate the vesting and delivery of Restricted Units. 
  

	9.	TAX WITHHOLDING. 

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

	10.	REGULATIONS AND APPROVALS. 

  
 (a) The obligation of the Company to issue Common Units with respect to an Award granted under the Plan shall be subject to all applicable laws, rules and
regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee. 
  
 (b) Without in any manner limiting the Committee’s authority as set
forth in Section 11, the Committee may make such changes to the Plan as may be necessary or appropriate to comply with the rules and regulations of any government authority or to obtain tax benefits applicable to an Award. 
  
 (c) Each Award is subject to the requirement that, if at any time the
Committee determines, in its discretion, that the listing, registration or qualification of Common Units issuable pursuant to the Plan is required by any securities exchange or under any state or federal law, or the consent or approval of any
governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance of an Award, no issuance of Common Units shall be made in whole or in part, unless listing, registration, qualification, consent or
approval has been effected or obtained free of any conditions in a manner acceptable to the Committee. 
  
 (d) In the event that the disposition of Common Units acquired pursuant to the Plan is not covered by a then current registration statement under the
Securities Act, and is not otherwise exempt from such registration, such Common Units shall be restricted against transfer to the extent required under the Securities Act, and the Committee may require any individual receiving Common Units pursuant
to the Plan, as a condition precedent to receipt of such 

  

 - 9 - 

 
Common Units, to represent to the Company in writing that such Common Units will be disposed of only if registered for sale under the Securities Act or if
there is an available exemption for such disposition. 
  

	11.	INTERPRETATION AND AMENDMENTS, OTHER RULES. 

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

	12.	CHANGES IN CAPITAL STRUCTURE; CERTAIN CORPORATE TRANSACTIONS. 

  
 (a) Changes in Capital Structure: In the event of a reorganization, recapitalization, spin-off, split-off, split-up, dividend payable in units, issuance
of stock rights, combination of units, shares or other securities, merger, consolidation or any other change in the structure of the Company affecting the Units, or any distribution to partners, members or other equity holders, other than a cash
distribution or any other event which in the judgment of the Committee necessitates action by way of adjusting the terms of the outstanding Awards, then the Committee, in its full discretion, shall make appropriate adjustment in the number and kind
of units authorized for use under the Plan and any adjustments to outstanding Awards as it determines appropriate. The adjustments to outstanding Awards shall include, but not be limited to, the number of Common Units covered, the respective prices
and/or limitations applicable to the outstanding Awards. No fractional Units shall be issued pursuant to such an adjustment. The Fair Market Value of any fractional Units or shares resulting from adjustments pursuant to this Section 12 shall, where
appropriate, be paid in cash to the Holder. The determinations and adjustments made by the Committee pursuant to this Section 12 shall be conclusive. 
  
 (b) Certain Corporate Transactions: In the event (1) the Company is consolidated with or otherwise combined with or acquired by a person or entity,
(2) of a merger of the Company with or into another entity, (3) of a Change of Control of the Company, (4) of a 

  

 - 10 - 

 
divisive reorganization, liquidation or partial liquidation of the Company, including, but not limited to, a Change of Control or (5) of the occurrence of an
event described in a Holder’s Award Agreement as a “Certain Corporate Transaction,” the Committee may, on a Holder by Holder basis: 
  
 (i) accelerate the vesting of all outstanding Options and/or SARs issued under the Plan that remain unvested and terminate the Option
and/or SAR immediately prior to the date of any such transaction, provided that the Holder shall have been given at least seven days written notice of such transaction and of the Committee’s intention to cancel the Options and/or SARs with
respect to all Common Units for which the Option and/or SAR remains unexercised; 
  
 (ii) fully vest and/or accelerate the Restriction Period of any Awards; 
  
 (iii) terminate the Award immediately prior to the date of any such transaction, provided that the Holder
shall have been given at least seven days written notice of such transaction and of the Committee’s intention to cancel the Award with respect to all Common Units for which the Award remains unexercised or subject to restriction or forfeiture;

  
 (iv) after having given the Holder a chance
to exercise any outstanding vested Options or SARs, terminate any or all of the Holder’s unexercised Options or SARs. 
  
 (v) cancel any outstanding Awards with respect to all Common Units for which the Award remains unexercised or for which the Award is
subject to forfeiture in exchange for a cash payment of an amount equal to the difference between the then Fair Market Value (provided that the Committee may, in its sole discretion, determine that the Fair Market Value of an unvested or restricted
Award is zero) of the Award less the Exercise Price of an Option, the base price of an SAR or the price (if any) of Restricted Units. If the Fair Market Value of the Common Units subject to the Award is less than the Exercise Price of an Option, the
base price of an SAR or the price (if any) of Restricted Units, the Award shall be deemed to have been paid in full and shall be canceled with no further payment due the Holder; 
  
 (vi) require that the Award be assumed by the successor corporation or that awards for shares or other
interests in the successor corporation with equivalent value be substituted for such Award; or 
  
 (vii) take such other action as the Committee shall determine to be reasonable under the circumstances to permit the Holder to realize the
value of the Award. 
  
 The application of the foregoing provisions, including,
without limitation, the issuance of any substitute options, shall be determined in good faith by the Committee in its sole discretion. Any adjustment may provide for the elimination of fractional Common Units in exchange for a cash payment equal to
the Fair Market Value of the eliminated fractional Common Units. 
  
 (c) Committee Authority: The judgment of the Committee with respect to any matter referred to in this Section 12 shall be conclusive and binding upon each Holder without the need for any amendment to the Plan. 
  

 - 11 - 

	13.	MISCELLANEOUS. 

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

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

			
	 MagnaChip Semiconductor LLC

		
	 By:
	 	 

			
		
	 Title:
	 	 

  

 - 12 - 

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

  

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

  

 - 2 - 

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

  

 - 3 - 

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

  

 - 4 - 

 
rights to purchase or subscribe for such Eligible Securities are subject to vesting, the Eligible Securities subject to vesting shall be included in the
definition of “Fully Diluted” only upon and to the extent of such vesting. 
  
 “Initial Ownership” means, with respect to any Securityholder and any series or class of Eligible Securities, the
Aggregate Ownership of such series or class by such Securityholder as of October 6, 2004, or, in the case of any Person who shall become a party to the Securityholders’ Agreement on a later date, as of such later date, in each case taking into
account any unit split, unit dividend, reverse unit split or similar event. 
  
 “Institutional Securityholder” means each of CVC US and FP and, to the extent either entity shall have transferred any of its Eligible Securities to any of its Permitted Transferees, shall mean the
Institutional Securityholder and such Permitted Transferees, taken together. 
  
 “New Securities” means any equity securities of the Company issued after the date hereof that do not constitute Company Securities. 
  
 “Other Securityholders” means all Securityholders other than the Institutional
Securityholders and, to the extent any such Other Securityholders shall have transferred any of their Eligible Securities to any of their Permitted Transferees, shall mean the Other Securityholders and such Permitted Transferees, taken together. For
purposes of this Annex I, “Other Securityholders” shall include recipients of Awards under the Plan. 
  
 “Permitted Transferee” means 
  
 (a) in the case of CVC Asia II Limited, CVC Asia LP, CVC Asia Investors and each of their respective Permitted Transferees, each of (A)
CVC Asia II, LP, Asia Enterprise II Domestic LLC, Asia Enterprise II Offshore, L.P., Citigroup, Inc. or any of its Affiliates in their capacity as co-investors with such Persons and any other fund, co-investment partnership or similar investment
vehicle formed for the purpose of investing with CVC Asia LP or CVC Asia II LP (each a “CVC Asia Pacific Fund”), (B) any general or limited partner of any CVC Asia Pacific Fund or co-investment partnership (each, a “CVC Asia
Pacific Partner,” and, collectively, the “CVC Asia Pacific Partners”), and any corporation, partnership or other entity that is an Affiliate of any CVC Asia Pacific Partner (collectively “CVC Asia Pacific
Affiliates”), (C) any managing director, general partner, director, limited partner, officer or employee of any CVC Asia Pacific Fund, any CVC Asia Pacific Partner or any CVC Asia Pacific Affiliate, or any spouse, lineal descendant,
sibling, parent, heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (C) (collectively, “CVC Asia Pacific Associates”), (D) any trust, the
beneficiaries of which, any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited partners of which include only one or more CVC Asia Pacific Funds, CVC
Asia Pacific Partners, CVC Asia Pacific Affiliates, CVC Asia Pacific Associates, their spouses or their lineal descendants and (E) with respect to CVC Asia II Limited, Citicorp North America, Inc. (“Citicorp N.A.”) in its capacity
as a secured lender under the certain Specific Recourse Loan Facility Agreement (the “CVC Asia Loan Agreement”), dated as of September 15, 2004, and any Affiliate of Citicorp N.A. to whom 

  

 - 5 - 

 
Citicorp N.A. assigns its rights and obligations under the CVC Asia Loan Agreement (the Persons described in clauses (A) through (E), the “CVC Asia
Pacific Permitted Transferees”); provided, that each of CVC Employee Fund, CVC Equity Fund and CVC Executive Fund shall not be a “Permitted Transferee” of any CVC Asia Pacific Investors; provided further that to the
extent a Person is a Permitted Transferee under both subparagraphs (i) and (ii) of this definition of “Permitted Transferee” such Person may transfer any Eligible Securities it receives as a Permitted Transferee pursuant to this
subparagraph (i) only to a CVC Asia Pacific Permitted Transferee and, for purposes of any provision of the Securityholders’ Agreement pursuant to which the Eligible Securities of CVC Asia Pacific Investors and its Permitted Transferees are
aggregated hereunder, such Person shall be deemed a Permitted Transferee pursuant to this subparagraph (i) only to the extent of the Eligible Securities held by such Person as a Permitted Transferee pursuant to this subparagraph (i); 
  
 (b) in the case of CVC Employee Fund, CVC Equity Fund, CVC
Executive Fund, CVC Co-Investors and each of their respective Permitted Transferees, (A) any CVC US fund or co-investment partnership or similar investment vehicle, (B) (1) any general or limited partner of any CVC US fund or co-investment
partnership (collectively, a “CVC US Partner”), and (2) Citigroup and any corporation, partnership or other entity that is an Affiliate of Citigroup or any CVC US Partner (collectively “CVC US Affiliates”), (C) any
CVC Co-Investor, Diana K. Mayer or any managing director, general partner, director, limited partner, officer or employee of any CVC US fund, any CVC US Partner or any CVC US Affiliate, or any spouse, lineal descendant, sibling, parent, heir,
executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (C) (collectively, “CVC US Associates”), (D) any trust, the beneficiaries of which, any charitable trust,
the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited partners of which include only CVC US, CVC US Partners, CVC US Affiliates, CVC Associates, their spouses or their
lineal descendants (the Persons described in clauses (A) through (D), the “CVC US Permitted Transferees”); provided, that each of CVC Asia II Limited, CVC Asia LP and CVC Asia Investors shall not be a “Permitted
Transferee” of CVC US; provided further that to the extent a Person is a Permitted Transferee under both subparagraphs (i) and (ii) of this definition of “Permitted Transferee” such Person may transfer any Eligible Securities
it receives as a Permitted Transferee pursuant to this subparagraph (ii) only to a CVC US Permitted Transferee and, for purposes of any provision of the Securityholders’ Agreement pursuant to which the Eligible Securities of CVC US and its
Permitted Transferees are aggregated hereunder, such Person shall be deemed a Permitted Transferee pursuant to this subparagraph (ii) only to the extent of the Eligible Securities held by such Person as a Permitted Transferee pursuant to this
subparagraph (ii); 
  
 (c) in the case of FP LP,
FP Fund A, and each of their Permitted Transferees, (A) any FP fund or co-investment partnership or limited liability company, including without limitation, FP Annual Investors, LLC, a Delaware limited liability company and FP-Magnachip Coinvest,
LLC, a Delaware limited liability company, (B) (1) any general or limited partner of any FP fund or co-investment partnership (collectively, an “FP Partner”), and (2) any corporation, partnership or other entity that is an Affiliate
of any FP Partner (collectively “FP Affiliates”) or (3) any manager or member of any FP co-investment limited liability company (collectively, “FP Member”), (C) any managing director, general partner, director,
limited partner, officer or employee of any FP fund, any FP Partner, any FP Affiliate or any FP Member, 

  

 - 6 - 

 
or any spouse, lineal descendant, sibling, parent, heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing
persons described in this clause (C) (collectively, “FP Associates”), (D) any trust, the beneficiaries of which, any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the
stockholders, members or general or limited partners of which include only FP, FP Partners, FP Affiliates, FP Associates, FP Members, their spouses or their lineal descendants; 
  
 (d) in the case of Peninsula and its Permitted Transferees, any Affiliate of Peninsula; provided,
that the consent of both the CVC US Securityholder Representative and the FP Securityholder Representative, which consent shall not be unreasonably withheld shall be obtained prior to such Transfer; 
  
 (e) in the case of Hynix and its Permitted Transferees, any
controlled Affiliate of Hynix; and 
  
 (f) in the
case of any Other Securityholder (other than Peninsula and Hynix) that is or becomes a party to the Securityholders’ Agreement and its Permitted Transferees, (A) a Person to whom Common Units are Transferred from such Other Securityholder (1)
by will or the laws of descent and distribution or (2) by gift without consideration of any kind, provided that, in the case of clause (2), such transferee is (x) the spouse or the lineal descendant, sibling or parent of such Securityholder,
or (y) if such Securityholder is a trust, or family corporation, limited liability company or partnership of the type described in the following clause (B), a beneficiary of, or a stockholder, member or partner of, such Securityholder or (B) any
trust, the beneficiaries of which, any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited partners of which include only such Other Securityholder or
its Permitted Transferees. 
  
 “Person” means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

  
 “Preferred Units” means the
Series A Preferred Units and the Series B Preferred Units. 
  
 “Securities” means the Common Units and Preferred Units. 
  
 “Securities Act” means the United States Securities Act of 1933, as amended. 
  
 “Securityholder” means each Person (other
than the Company) who shall be a party to or bound by the Securityholders’ Agreement, so long as such Person shall “beneficially own” (as such term is defined in Rule 13d-3 of the Exchange Act) any Eligible Securities. 
  
 “Securityholders’ Agreement” means the
Amended and Restated Securityholders’ Agreement dated as of October 6, 2004 among (i) the Company, (ii) CVC Capital Partners Asia Pacific LP, a Cayman Islands limited partnership (“CVC Asia LP”), Asia Investors LLC, a Delaware
limited liability company (“CVC Asia Investors”) and CVC Capital Partners Asia II Limited, a Jersey company (“CVC Asia II Limited” and, collectively with CVC Asia LP and CVC Asia Investors, “CVC Asia Pacific
Investors”), (iii) Citigroup Venture 

  

 - 7 - 

 
Capital Equity Partners, L.P., a Delaware limited partnership (“CVC Equity Fund”), CVC Executive Fund LLC, a Delaware limited liability
company (“CVC Executive Fund”), CVC/SSB Employee Fund, L.P., a Delaware limited partnership (“CVC Employee Fund”), the persons named on Schedule I thereto (collectively, the “CVC
Co-Investors” and, collectively with CVC Equity Fund, CVC Executive Fund and CVC Employee Fund, “CVC US”), (iv) Francisco Partners, L.P., a Delaware limited partnership (“FP LP”), Francisco Partners Fund A,
L.P., a Delaware limited partnership (“FP Fund A” and, collectively, with FP LP and FP Fund A, “FP”), (v) Peninsula Investment Pte. Ltd., a Singapore private company (“Peninsula”), (vi) Hynix
Semiconductor Inc. (“Hynix”), (vii) certain management investors named therein and (viii) such persons that shall sign joinder agreements to the Securityholders’ Agreement in accordance with the terms hereof. 
  
 “Series A Preferred Units” means the Series
A Preferred Membership Interests of the Company having the rights, including voting rights, described in the LLC Agreement and any securities into which such Series A Preferred Membership Interests may hereafter be converted or changed. 

 
 “Series B Preferred Units” means the
Series B Preferred Membership Interests of the Company having the rights, including voting rights, described in the LLC Agreement and any securities into which such Series B Preferred Membership Interests may hereafter be converted or changed.

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

  

 - 8 -

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