Document:

EX-10.7

 Exhibit 10.7 

EXECUTION VERSION 
 SECOND
AMENDMENT TO TERMINATION AND SETTLEMENT AGREEMENT 
 This Second Amendment to Termination and Settlement Agreement (this
“Amendment”) is entered into as of August 5, 2022, by and among South Dearborn Limited, an exempted company incorporated in the Cayman Islands with limited liability (“Parent”), Magnachip Semiconductor
Corporation, a Delaware corporation (the “Company”), and Wise Road Capital LTD (“Wise Road”). Each of Parent, Wise Road and the Company are sometimes referred to herein as a “Party”. 

RECITALS 
 WHEREAS,
Parent, Company and Michigan Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (the “Merger Sub”), previously entered into that certain Agreement and Plan of Merger, dated as of March 25, 2021
(“Merger Agreement”), pursuant to which Merger Sub was to merge with and into the Company with the Company surviving as a wholly-owned subsidiary of Parent, subject to the terms and conditions of the Merger Agreement; 

WHEREAS, Parent, Merger Sub, the Company and Wise Road have entered into that certain Termination and Settlement Agreement (the
“Agreement”), dated as of December 13, 2021 and amended pursuant to the First Amendment to Termination and Settlement Agreement, dated as of April 4, 2022, pursuant to which, among other things, the Merger Agreement was
terminated on December 20, 2021 upon the Company’s receipt of the Parent Initial Fee and the Amended Standby Letter of Credit; and 

WHEREAS, pursuant to Section 16 of the Agreement, the Parties, with the exception of Merger Sub, which was dissolved effective
March 21, 2022, desire to mutually amend the Agreement as set forth herein. 
 NOW, THEREFORE, in consideration of the
mutual covenants, agreements and understandings herein contained, the receipt and sufficiency of which are acknowledged, on the terms and subject to the conditions set forth in this Amendment, the parties, intending to be legally bound, agree as
follows: 
 1. Section 2 of the Agreement titled “Parent Fees” is hereby amended and restated as follows: 

“Promptly following the execution of this Agreement, and in any event no later than 5:00 p.m. Eastern time on December 15, 2021 (the
“Parent Initial Fee Deadline”), and in consideration for the agreements made by the Company under this Agreement, Parent shall (and Wise Road shall cause Parent to) pay or cause to be paid $51,000,000 (the “Parent Initial
Fee”) in cash by wire transfer of immediately available funds to the account designated by the Company prior to the date hereof. Promptly following the execution of the first amendment to this Agreement, and in any event no later than 5:00
p.m. Eastern time on April 4, 2022 (the “Parent Second Fee Deadline”), and in consideration for the agreements made by the Company under this Agreement, Parent shall (and Wise Road shall cause Parent to) pay or cause to be paid
$14,400,000 (the “Parent Second Fee”) in cash by wire transfer of immediately available funds to the account designated by the Company. Promptly following the execution of the second amendment to this Agreement, and in any event no
later than 5:00 p.m. Eastern time on August 5, 2022 (the “Parent Third Fee Deadline”), and in consideration for the agreements made by the Company under this Agreement, Parent shall (and Wise Road shall cause Parent to) pay or
cause to be paid $3,000,000 (the “Parent Third Fee”) in cash by wire transfer of immediately available funds to the account designated by the Company. By no later than 5:00 p.m. Eastern time on October 31, 2022 (the
“End Date”), Parent shall (and Wise Road shall cause Parent to) pay or cause to be paid $1,800,000 (the “Remaining Parent Fee”) in cash by wire transfer of immediately available funds to the account designated by
the Company. None of the Parent Initial Fee, the Parent Second Fee, the Parent Third Fee or the Remaining Parent Fee shall be repayable or refundable under any circumstances. The Parties acknowledge and agree that, effective as of, and from and
after, the Termination Effective Time, neither the Company Termination Fee nor the Parent Termination Fee shall be payable in connection with this Agreement, the Merger Agreement, the Termination or otherwise.” 

 2. Section 3 of the Agreement titled “Amended Standby Letter of Credit” is hereby
amended and restated as follows: 
 “Promptly following the execution of this Agreement, and in any event no later than 5:00 p.m.
Eastern time on December 22, 2021 (the “SBLC Deadline”), (a) the Parties shall cause the Standby Letter of Credit to be amended to provide that, on or any time after April 1, 2022, if Parent has not paid the Parent Second
Fee to the Company by the Parent Second Fee Deadline, the Company may deliver a draw notice to the Issuing Bank and demand immediate payment of the full amount of the Parent Second Fee (which, for the avoidance of doubt, will not require any
consent, instruction or other approval or acknowledgment from Parent or any of its Affiliates) (the “Amended Standby Letter of Credit”), and (b) Parent and Wise Road shall cause an original fully executed version of the Amended
Standby Letter of Credit to be delivered to the Company or its designee. Promptly following the execution of the first amendment to this Agreement, and in any event immediately prior to the payment of the Parent Second Fee (the “Second SBLC
Deadline”), (a) the Parties shall cause the Amended Standby Letter of Credit, dated as of December 20, 2021, to be amended to provide that, on or any time after June 30, 2022, if Parent has not paid the Parent Third Fee to the
Company by the Parent Third Fee Deadline, the Company may deliver a draw notice to the Issuing Bank and demand immediate payment of the full amount of the Parent Third Fee (which, for the avoidance of doubt, will not require any consent, instruction
or other approval or acknowledgment from Parent or any of its Affiliates) (the “Second Amended Standby Letter of Credit”), and (b) Parent and Wise Road shall cause an original fully executed version of the Second Amended
Standby Letter of Credit to be delivered to the Company or its designee. Promptly following the execution of the second amendment to this Agreement, and in any event immediately prior to the payment of the Parent Third Fee (the “Third SBLC
Deadline”), (a) the Parties shall cause the Second Amended Standby Letter of Credit, dated as of April 4, 2022, to be amended to provide that, on or any time after October 31, 2022, if Parent has not paid the Remaining Parent Fee
to the Company by the End Date, the Company may deliver a draw notice to the Issuing Bank and demand immediate payment of the full amount of the Remaining Parent Fee (which, for the avoidance of doubt, will not require any consent, instruction or
other approval or acknowledgment from Parent or any of its Affiliates) (the “Third Amended Standby Letter of Credit”), and (b) Parent and Wise Road shall cause an original fully executed version of the Third Amended Standby
Letter of Credit to be delivered to the Company or its designee.” 
 3. All references herein and in the Agreement to the
“Agreement” shall mean and include the Agreement as amended by this Amendment. Except as amended hereby, the Agreement shall remain unchanged, and the Agreement, as so amended, shall continue in full force and effect in accordance with its
terms. 
 4. The provisions of this Amendment may not be amended, modified or supplemented in any manner, whether by course of conduct or
otherwise, except by an instrument in writing specifically designated as a subsequent amendment to the Agreement, signed on behalf of each of the Parties. No Party may assign either this Amendment or any of its rights, interests, or obligations
hereunder without the prior written approval of the other Parties. Subject to the preceding sentence, this Amendment shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. This
Amendment and any dispute, claim, legal action, suit, proceeding or controversy arising out of or relating hereto, shall be governed by, and construed in accordance with, the Law of the State of Delaware, without regard to conflict of law principles
(whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware. 

5. Each Party represents and warrants to the other Parties that: (i) such Party has all requisite power and authority to enter into this
Amendment and to take the actions contemplated hereby; (ii) the execution and delivery of this Amendment and the actions contemplated hereby have been duly authorized by all necessary corporate or other action on the part of such Party; and
(iii) this Amendment has been duly executed and delivered by such Party and, assuming the due authorization, execution and delivery by the other Parties, constitutes a legal, valid and binding obligation of such, enforceable against such Party
in accordance with its terms, subject to the Enforceability Exceptions. 

  
 2 

 6. This Amendment may be executed in any number of counterparts, as if the signatures to
each counterpart were upon a single instrument, and all such counterparts together shall be deemed an original of this Amendment. Facsimile signatures or signatures received as a pdf attachment to electronic mail shall be treated as original
signatures for all purposes of this Amendment. This Amendment shall become effective when, and only when, each Party shall have received a counterpart signed by all of the other Parties. 

7. Capitalized terms used herein but not otherwise defined shall have the respective meanings ascribed thereto in the Agreement. 

[Remainder of page intentionally left blank.] 

  
 3 

 IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by the duly
authorized officers of the Parties as of the date first written above. 
  

			
	SOUTH DEARBORN LIMITED
		
	By:	 	 /s/ Yuanjie Zhang

	        Name: Yuanjie Zhang
	        Title: Director
	
	WISE ROAD CAPITAL LTD
		
	By:	 	 /s/ Yuanjie Zhang

	        Name: Yuanjie Zhang
	        Title: Director

 IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by the duly
authorized officers of the Parties as of the date first written above. 
  

			
	MAGNACHIP SEMICONDUCTOR CORPORATION
		
	By:	 	 /s/ Theodore S. Kim

		 	Name: Theodore S. Kim
		 	 Title:   Chief Compliance Officer, General Counsel and SecretaryEX-10.8

 Exhibit 10.8 

[***] 
 CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL 

MagnaChip/Infineon Confidential     

PATENT CROSS-LICENSE AGREEMENT 
 This
Patent Cross-License Agreement (“AGREEMENT”) is entered into on June 15, 2017 (“EFFECTIVE DATE”) by and between Infineon Technologies AG (“INFINEON”), a corporation duly incorporated under the laws of
Germany having its principal offices at Am Campeon 1-12, 85579 Neubiberg, Germany, and MagnaChip Semiconductor, Ltd. (“MAGNACHIP”), a company duly organized under the laws of Korea, having its
principal offices at 424, Teheran-ro, Gangnam-gu, Seoul 135-738, Republic of Korea (INFINEON and MAGNACHIP hereinafter collectively referred to as the “PARTIES” and individually as a
“PARTY”). 
 Preamble 
 WHEREAS, each
of the PARTIES desires to acquire for itself and its AFFILIATES (as “LICENSEE”) a non-exclusive license under patents of the other PARTY and its AFFILIATES (as “LICENSOR”); 

WHEREAS, each of the PARTIES is engaged in semiconductor business; 

WHEREAS, each of the PARTIES is willing to enhance its capability in research and development and other necessary functions as a semiconductor company; and

 NOW THEREFORE, INFINEON and MAGNACHIP agree as follows: 
  

	1.	 Definitions 

 

	1.1	 “ACQUIRED ENTITY” shall have the meaning ascribed to it in Section 6.1. 

 

	1.2	 “ACQUIRED PARTY” shall have the meaning ascribed to it in Section 6.2. 

 

	1.3	 “ACQUIRING ENTITY” shall have the meaning ascribed to it in Section 6.2. 

 

	1.4	 “ACQUIRING PARTY” shall have the meaning ascribed to it in Section 6.1. 

 

	1.5	 “AFFILIATE” shall mean, with respect to any PERSON, any other PERSON that directly, or indirectly
through one or more intermediaries, CONTROLS, is CONTROLLED by or is under common CONTROL with, such first PERSON, provided that such other PERSON shall be deemed to be an AFFILIATE only so long as such CONTROL exists. For these purposes,
“CONTROL” shall mean that more than 50% of the controlled PERSON’s outstanding shares or ownership interests representing the right to make decisions for that PERSON are owned or controlled directly or indirectly by the controlling
PERSON. Notwithstanding the foregoing, [***] shall not be regarded as an AFFILIATE of INFINEON. 

  

			
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	1.6	 “AGREEMENT” shall have the meaning ascribed to it on page 1 of this AGREEMENT. 

 

	1.7	 “BALANCING PAYMENTS” shall have the meaning ascribed to it in Section 4.1.1.

  

	1.8	 “COMPETITOR” shall mean, with respect to a PARTY, any PERSON that engages, as of the date of the
closing of the transaction contemplated by Section 6.2 or 6.3, in a business that competes with the LICENSED PRODUCTS of such PARTY. 

  

	1.9	 “DISCRETE POWER MOSFET PRODUCT” shall mean [***]. 

 

	1.10	 “EFFECTIVE DATE” shall have the meaning ascribed to it on page 1 of this AGREEMENT.

  

	1.11	 “IGBT DISCRETE PRODUCT” shall mean [***]. 

 

	1.12	 “INFINEON LICENSED PATENTS” shall mean: 

 

	 	(a)	 all classes or types of patents, utility models and design patents, including applications therefor, in all
countries of the world, which are issued or published, or filed prior to (and including) December 31, 2020, including continuations, divisionals, reissues and other pre-grant and post-grant applications and issuances and foreign counterparts thereof; and 

  

	 	(b)	 under which patents, utility models or design patents (including applications therefor) INFINEON or any of its
AFFILIATES has, during the TERM, the right to grant licenses of or within the scope granted herein without such grant or the exercise of rights thereunder resulting in the payment of royalties or other consideration by INFINEON or its AFFILIATES to
THIRD PARTIES (except for payments among INFINEON and its AFFILIATES, and payments to employees of INFINEON or any of its AFFILIATES or to THIRD PARTIES for inventions made by said THIRD PARTIES while employed or otherwise engaged by INFINEON or any
of its AFFILIATES). 

  

	1.13	 “INFINEON LICENSED PRODUCTS” shall mean [***]. 

 

	1.14	 “LICENSED PATENTS” shall mean INFINEON LICENSED PATENTS or MAGNACHIP LICENSED PATENTS, as applicable.

  

	1.15	 “LICENSED PRODUCTS” shall mean INFINEON LICENSED PRODUCTS or MAGNACHIP LICENSED PRODUCTS, as
applicable. 

  

	1.16	 “LICENSEE” shall have the meaning ascribed to it on page 1 of this AGREEMENT. 

 

	1.17	 “LICENSOR” shall have the meaning ascribed to it on page 1 of this AGREEMENT. 

 

	1.18	 “MAGNACHIP LICENSED PATENTS” shall mean: 

  

			
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 [***] 
  

	 	(a)	 all classes or types of patents, utility models and design patents, including applications therefor, in all
countries of the world, which are issued or published, or filed prior to (and including) December 31, 2020, including continuations, divisionals, reissues and other pre-grant and post-grant applications and issuances and foreign counterparts thereof; and 

  

	 	(b)	 under which patents, utility models or design patents (including applications therefor) MAGNACHIP or any of its
AFFILIATES has, during the TERM, the right to grant licenses of or within the scope granted herein without such grant or the exercise of rights thereunder resulting in the payment of royalties or other consideration by MAGNACHIP or its AFFILIATES to
THIRD PARTIES (except for payments among MAGNACHIP and its AFFILIATES, and payments to employees of MAGNACHIP or any of its AFFILIATES or to THIRD PARTIES for inventions made by said THIRD PARTIES while employed or otherwise engaged by MAGNACHIP or
any of its AFFILIATES). 

  

	1.19	 “MAGNACHIP LICENSED PRODUCTS” shall mean any DISCRETE POWER MOSFET PRODUCTS with identification
numbers or codes assigned thereto and any individual IGBT DISCRETE PRODUCTS with identification numbers or codes assigned thereto, in each case first sold at production volume prior to (and including) December 31, 2020 which (i) are
designed or developed by or for MAGNACHIP and/or any of its AFFILIATES (either solely or jointly with one or more THIRD PARTIES), or of which designs are licensed or acquired by MAGNACHIP and/or any of its AFFILIATES and (ii) if marketed, are
marketed by MAGNACHIP and/or any of its AFFILIATES under its own name as its own product. 

  

	1.20	 “MAGNACHIP POWER BUSINESS LINE” shall mean MAGNACHIP’s business line consisting of the design,
marketing and sale of any and all power solutions products, where the term “power solutions” has the meaning generally understood in the global semiconductor industry. As of the EFFECTIVE DATE, the MAGNACHIP POWER BUSINESS LINE includes
certain discrete and integrated circuit solutions for power management in consumer, communication and industrial applications — namely, power converters, discrete IGBTs, MOSFETs (low voltage, mid voltage, high voltage and superjunction) and
power modules. Without limiting the foregoing, in the event that MAGNACHIP designs, markets and sells any other power solutions products now or anytime during the TERM, such products shall be deemed to be a part of the MAGNACHIP POWER BUSINESS LINE.

  

	1.21	 “MX” shall mean MagnaChip Semiconductor Corporation, a corporation duly incorporated under the laws
of the State of Delaware, U.S.A. 

  

	1.22	 “PERSON” shall mean an individual, corporation, partnership, limited liability company, limited
liability partnership, syndicate, person, trust, association, organization or other entity, including any successor, by merger or otherwise, of any of the foregoing. 

 

	1.23	 “PRIOR LICENSE AGREEMENT” shall have the meaning ascribed to it in Section 6.1.

  

			
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	1.24	 “RECIPIENT” shall have the meaning ascribed to it in Section 6.3. 

 

	1.25	 “RECIPIENT LICENSED PATENTS” shall mean: 

 

	 	(a)	 all classes or types of patents, utility models and design patents, including applications therefor, in all
countries of the world, which are issued or published, or filed prior to (and including) December 31, 2020, including continuations, divisionals, reissues and other pre-grant and post-grant applications and issuances and foreign counterparts thereof; and 

  

	 	(b)	 under which patents, utility models or design patents (including applications therefor) RECIPIENT or any of its
AFFILIATES has, during the TERM, the right to grant licenses of or within the scope granted herein without such grant or the exercise of rights thereunder resulting in the payment of royalties or other consideration by RECIPIENT or its AFFILIATES to
THIRD PARTIES (except for payments among RECIPIENT and its AFFILIATES, and payments to employees of RECIPIENT or any of its AFFILIATES or to THIRD PARTIES for inventions made by said THIRD PARTIES while employed or otherwise engaged by RECIPIENT or
any of its AFFILIATES). 

  

	1.26	 “SUBSIDIARY” of a PERSON shall mean a corporation, company or other entity: 

 

	 	(a)	 more than fifty percent (50%) of whose outstanding shares or securities (representing the right to vote for the
election of directors or other managing authority) are, now or hereafter, owned or controlled, directly or indirectly, by such PERSON, but such corporation, company or other entity shall be deemed to be a SUBSIDIARY only so long as such ownership or
control exists; or 

  

	 	(b)	 which does not have outstanding shares or securities, as may be the case in a partnership, joint venture or
unincorporated association, but more than fifty percent (50%) of whose ownership interest representing the right to make the decisions for such corporation, company or other entity is now or hereafter, owned or controlled, directly or indirectly, by
such PERSON, but such corporation, company or other entity shall be deemed to be a SUBSIDIARY only so long as such ownership or control exists. 

Notwithstanding the foregoing, [***] shall not be regarded as a SUBSIDIARY of INFINEON. 

 

	1.27	 “TERM” shall have the meaning ascribed to it in Section 5.1. 

 

	1.28	 “THIRD PARTY” shall mean a PERSON other than a PARTY, a PARTY’S AFFILIATE or a PARTY’S
SUBSIDIARY. 

  

	1.29	 “THIRD PARTY MANUFACTURER” shall mean a manufacturer that is a THIRD PARTY, subject to the conditions
set forth in Section 2.3. 

  

	1.30	 “TRANSFERRING PARTY” shall have the meaning ascribed to it in Section 6.3.

  

			
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	2.	 License Grants 

 

	2.1	 INFINEON, as LICENSOR, hereby grants and shall cause its AFFILIATES to grant to MAGNACHIP, as LICENSEE, a non-exclusive, non-transferable (except in accordance with Section 7.2), worldwide license, without the right to sublicense (except to its AFFILIATES in accordance with
Section 2.5), under INFINEON LICENSED PATENTS: 

  

	 	(a)	 to make (including the right to use any apparatus and practice any method in making, including without
limitation design, test, assemble etc.), use, import, offer for sale, lease, license, sell and/or otherwise dispose of MAGNACHIP LICENSED PRODUCTS; and 

  

	 	(b)	 to have MAGNACHIP LICENSED PRODUCTS made by a THIRD PARTY MANUFACTURER for the use, importation, offer for
sale, lease, sale and/or other disposition of such LICENSED PRODUCTS by MAGNACHIP subject to the conditions set forth in Section 2.3. 

  

	2.2	 MAGNACHIP, as LICENSOR, hereby grants and shall cause its AFFILIATES to grant to INFINEON, as LICENSEE, a non-exclusive, non-transferable (except in accordance with Section 7.2), worldwide license, without the right to sublicense (except to its AFFILIATES in accordance with
Section 2.5), under MAGNACHIP LICENSED PATENTS: 

  

	 	(a)	 to make (including the right to use any apparatus and practice any method in making, including without
limitation design, test, assemble etc.), use, import, offer for sale, lease, license, sell and/or otherwise dispose of INFINEON LICENSED PRODUCTS; and 

  

	 	(b)	 to have INFINEON LICENSED PRODUCTS made by THIRD PARTY MANUFACTURER for the use, importation, offer for sale,
lease, sale and/or other disposition of such LICENSED PRODUCTS by INFINEON subject to the conditions set forth in Section 2.3. 

  

	2.3	 The licenses granted in Section 2.1(b) and 2.2(b) to have LICENSED PRODUCTS made by a THIRD PARTY
MANUFACTURER: 

  

	 	(a)	 shall only apply to such LICENSED PRODUCTS manufactured by such THIRD PARTY MANUFACTURER for LICENSEE after the
EFFECTIVE DATE; 

  

	 	(b)	 shall only apply to LICENSED PRODUCTS or portions thereof for which the specifications were created by LICENSEE
(either solely or jointly with one or more THIRD PARTIES) or for LICENSEE or by or for LICENSEE’S predecessor (including specifications licensed or acquired by LICENSEE or LICENSEE’S predecessor from THIRD PARTIES); 

 

	 	(c)	 shall only be granted under claims of LICENSED PATENTS, the infringement of which would be necessary in order
to comply with such specifications; 

  

			
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	 	(d)	 shall not apply to any apparatus or methods when used or practiced by said THIRD PARTY MANUFACTURER for the
manufacture of products other than LICENSED PRODUCTS; 

  

	 	(e)	 shall not include the right to resell LICENSED PRODUCTS to the THIRD PARTY MANUFACTURER for the purpose of
further resale by the THIRD PARTY MANUFACTURER under its own name, trade mark or logo to THIRD PARTIES; and 

  

	 	(f)	 shall not apply to the manufacture or assembly by the THIRD PARTY MANUFACTURER of a standard, off-the shelf product of the THIRD PARTY MANUFACTURER, originally designed or developed by or for the THIRD PARTY MANUFACTURER and to which only minor revisions are made to conform to the specifications of the
LICENSED PRODUCT. 

 For the avoidance of doubt, the licenses granted in Section 2.1(b) and 2.2(b) to have LICENSED
PRODUCTS made by a THIRD PARTY MANUFACTURER shall not extend to the manufacturing process employed by the THIRD PARTY for manufacture of LICENSED PRODUCTS, except to the extent that the manufacturing process has been licensed or provided to the
THIRD PARTY MANUFACTURER by LICENSEE. 
 Notwithstanding the foregoing, with respect to the manufacturing process employed by the THIRD PARTY
MANUFACTURER, each PARTY agrees not to assert its rights under the LICENSED PATENTS against the other PARTY and/or its AFFILIATES and/or their customers to the extent the other PARTY would be licensed under this AGREEMENT if the manufacturing
process had been provided by the other PARTY; provided, however, that each PARTY reserves the right to assert its rights against the THIRD PARTY MANUFACTURER or any other THIRD PARTY. 

In response to a written request identifying a LICENSED PRODUCT and a THIRD PARTY MANUFACTURER, LICENSEE shall in a timely manner inform
LICENSOR whether such LICENSED PRODUCT is manufactured by such THIRD PARTY MANUFACTURER pursuant to the license granted in Section 2.1(b) or 2.2(b). 
  

	2.4	 It is the intent of the PARTIES that a PARTY is not subject to claims of indirect infringement (under 35 U.S.C.
271(b) and (c)) of any LICENSED PATENT of the other PARTY (“INDIRECT INFRINGEMENT”) arising from any activity that is authorized under the licenses granted to such PARTY under this AGREEMENT; provided that (a) nothing in this
Section 2.4 will be deemed to constitute or give rise to any right of any THIRD PARTY by way of exhaustion or otherwise, and (b) an assertion of claims of infringement against any THIRD PARTY is not an assertion of INDIRECT INFRINGEMENT
against the other PARTY for purposes of this Section 2.4. Each PARTY agrees that it will not in any event advocate or advise that this Section 2.4 constitutes or gives rise to any right of any THIRD PARTY by way of exhaustion or otherwise.

  

			
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 The PARTIES agree that a PARTY has the right to sue a THIRD PARTY for patent infringement
where such infringement arises from a combination of LICENSED PRODUCT with any other products or from the interaction/relationship between the LICENSED PRODUCT and such other products, but such PARTY shall not sue such THIRD PARTY for patent
infringement solely based on the other PARTY’s LICENSED PRODUCT. By way of example and for the avoidance of any doubt regarding the effect of patent exhaustion, if MAGNACHIP’s customer (a THIRD PARTY) purchases a discrete power MOSFET
product constituting a LICENSED PRODUCT from MAGNACHIP and incorporates such product into its TV device, which naturally includes many other semiconductor components and materials, then INFINEON shall have the right to sue such customer for patent
infringement based on such other semiconductor components or materials or based on the interaction/relationship between the LICENSED PRODUCT and such other semiconductor components or materials, but not based solely on the LICENSED PRODUCT that the
customer purchased from MAGNACHIP. 
 Nothing contained in this AGREEMENT shall be construed as conferring any rights by implication,
estoppels or otherwise, under any non-patent intellectual property right, or any patents, patent applications, utility models or utility model applications, other than the LICENSED PATENTS. Neither PARTY is
required hereunder to furnish or disclose to the other any technical or other information (including copies of LICENSED PATENTS) except as specifically provided herein. 

In the event that neither a PARTY nor any of its AFFILIATES has the right to grant a license of the scope set forth in Section 2 under any
particular LICENSED PATENT, then the license granted herein under said LICENSED PATENT shall be of the broadest scope which said PARTY or any of its AFFILIATES has the right to grant within the scope set forth above. 

 

	2.5	 The licenses granted herein include the right of each PARTY to grant sublicenses to its AFFILIATES existing on
or after the EFFECTIVE DATE, which sublicenses may include the right of the sublicensed AFFILIATES to grant sublicenses to other AFFILIATES. No sublicense shall be broader in any respect at any time during the TERM than the license held at that time
by the PARTY that granted the sublicense. 

 Except as otherwise provided in Section 6, a sublicense granted to an
AFFILIATE shall terminate on the earlier of: 
  

	 	(a)	 the date on which such AFFILIATE ceases to be an AFFILIATE of a PARTY hereto; and 

 

	 	(b)	 the date of termination or expiration of the license to the PARTY or AFFILIATE that granted the sublicense.

 If an AFFILIATE ceases to be an AFFILIATE and holds any LICENSED PATENTS under which a PARTY hereto is licensed, such
license shall continue for the TERM. 

  

			
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	3.	 Releases and Non-Assertion Covenants

  

	3.1	 MAGNACHIP and its AFFILIATES hereby release, acquit and forever discharge INFINEON, its AFFILIATES, directors,
officers, employees, successors, customers, THIRD PARTY MANUFACTURERS and end users in any country, for any time prior to the EFFECTIVE DATE, from any and all claims or liability for acts of infringement or alleged infringement of any of MAGNACHIP
LICENSED PATENTS under which a license is herein granted by MAGNACHIP and which, if performed after the EFFECTIVE DATE, would have been licensed pursuant to the terms of this AGREEMENT. 

 

	3.2	 Upon INFINEON’S receipt in full of BALANCING PAYMENT NO. 1 and BALANCING PAYMENT NO. 2, INFINEON and its
AFFILIATES hereby, automatically and without further action being required, release, acquit and forever discharge MAGNACHIP, its AFFILIATES, directors, officers, employees, successors, customers, THIRD PARTY MANUFACTURERS and end users in any
country, for any time prior to the EFFECTIVE DATE, from any and all claims or liability for acts of infringement or alleged infringement of any of INFINEON LICENSED PATENTS under which a license is herein granted by INFINEON and which, if performed
after the EFFECTIVE DATE, would have been licensed pursuant to the terms of this AGREEMENT. Prior to INFINEON’S receipt in full of BALANCING PAYMENT NO. 1 and BALANCING PAYMENT NO. 2, no release will be understood to have been granted
by INFINEON. 

  

	3.3	 Subject to Section 5.4 and until the release set forth in Section 3.2 becomes effective, INFINEON and
its AFFILIATES hereby covenant not to file against MAGNACHIP, its AFFILIATES, directors, officers, employees, successors, customers, THIRD PARTY MANUFACTURERS and/or end users any suit for infringement of any INFINEON LICENSED PATENTS under which a
license is herein granted by INFINEON and which, if performed after the EFFECTIVE DATE, would have been licensed pursuant to the terms of this AGREEMENT. 

  

	3.4	 The releases and non-assertion covenants contained herein shall not
apply to any person other than the persons named in this Section 3 and shall not apply to the manufacture of any items by any person other than the PARTIES and their AFFILIATES and their respective THIRD PARTY MANUFACTURERS. The releases
granted herein are effective immediately upon receipt of the payment due, if any, under Section 4. 

  

	4.	 Payments 

 

	4.1	 MAGNACHIP shall make the following payments to INFINEON in accordance with the following provisions:

  

	4.1.1	 Balancing Payments 

In consideration for the license granted by each PARTY and its AFFILIATES pursuant to this AGREEMENT and the releases set forth in
Section 3, MAGNACHIP shall pay to INFINEON in accordance with the agreed upon payment schedule as set forth in Annex 1 a sum of [***] (collectively, the “BALANCING PAYMENTS”). 

  

			
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 [***] 
  

 For each BALANCING PAYMENT installment as set forth in Annex 1, INFINEON will issue a
corresponding invoice, and payments shall be made not later than (i) fifteen (15) calendar days following the receipt by MAGNACHIP of the respective invoice or (ii) the respective due date, whichever is later. 

 

	4.1.2	 For the avoidance of doubt, no payment is to be made by INFINEON or its AFFILIATES to MAGNACHIP or its
AFFILIATES with respect to the licenses and other rights granted by MAGNACHIP or its AFFILIATES to INFINEON and its AFFILIATES; provided that the foregoing shall not have any effect on any obligation that may arise under this AGREEMENT
whereby INFINEON is required to make an adjustment payment or a refund payment to MAGNACHIP, including pursuant to Section 6.2. 

  

	4.2	 MAGNACHIP shall be liable for interest on any overdue payment required to be made pursuant to this
Section 4, commencing on the date such payment becomes due, at an annual rate of ten percent (10%). If such interest rate exceeds the maximum permissible legal rate in the jurisdiction where a claim therefor is being asserted, the interest rate
shall be reduced to such maximum permissible legal rate. 

  

	4.3	 Payments shall be made in US Dollars by electronic funds transfer and shall be deemed to be made on the date
credited to the following account of INFINEON: 

  

			
	Bank	  	[***]
	Account No.	  	[***]
	Swift Code	  	[***]
	IBAN	  	[***]

  

	4.4	 With the exception of value added tax (hereinafter “VAT”) and similar taxes (if any), all taxes,
customs duties and other charges imposed by governmental authorities on INFINEON with respect to any payments to be made by MAGNACHIP under or in connection with this AGREEMENT (hereinafter “TAXES”) shall be the responsibility of INFINEON.
All fees and charges hereunder shall include all TAXES. 

 All fees and charges (amounts) specified in accordance with this
AGREEMENT shall be net of any VAT, sales tax, goods and service tax, business taxes or similar taxes thereon. Insofar as the license grants agreed upon under this AGREEMENT are subject to VAT or similar taxes, such VAT / similar taxes shall –
to the extent they are not owed to the competent tax authority by the respective Licensee under a reverse charge mechanism/for an intra-community acquisition (or any similar provision under the applicable tax laws) – be paid by the respective
Licensee in addition to the agreed amounts. The respective Licensor is obliged to render proper invoices within the meaning of the applicable tax law. 

Notwithstanding the foregoing, the PARTIES acknowledge that for VAT purposes INFINEON supplies its service to a place of business of MAGNACHIP
outside of Germany (that is, cross-border supply of services) and does not have to charge German VAT, MAGNACHIP will inform INFINEON in writing if a permanent establishment is to be established in Germany to which INFINEON’s service is to be
rendered. In the event 

  

			
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that the PARTIES determine jointly that the place of supply (from INFINEON to MAGNACHIP) has changed to a German place of business and that INFINEON has to charge German VAT at statutory rates,
then MAGNACHIP shall bear the cost of such German VAT, provided that INFINEON issues to MAGNACHIP on a timely basis an invoice that complies with the requirements of sec. 14, para. 4 of the German VAT Act (Umsatzsteuergesetz). The
same applies in case the German tax authorities assess such German VAT on the grounds that MAGNACHIP has a permanent establishment in Germany. If MAGNACHIP fails to timely inform INFINEON about establishing a permanent establishment in Germany,
MAGNACHIP holds INFINEON harmless of any damages, fines or penalties assessed against INFINEON as a result of MAGNACHIP having a permanent establishment in Germany. 

All amounts due under this AGREEMENT shall be paid without deduction for income taxes. If withholdings of whatever nature are due on payments
to be made by any LICENSEE or LICENSOR, then the PARTIES shall cooperate to achieve, if possible, a partial or complete exemption from the withholding obligation and to make the withholding at the lowest possible rate. Should a withholding
obligation nevertheless exist, LICENSEE shall make the necessary gross-up payments to leave LICENSOR (after the deduction of the withholding tax) with an amount equal to the payment which would have been due had no withholding tax deduction been
required. Gross-up payment for the tax to be withheld by LICENSEE shall not be made (i) if and to the extent LICENSOR may claim a credit in its own tax jurisdiction and (ii) if and to the extent
LICENSOR may claim a refund of the tax withheld in the jurisdiction of the LICENSEE. In this event, LICENSEE shall promptly furnish receipts and other documents evidencing the payment of such withholding taxes. 

Each PARTY shall be responsible for any and all taxes payable to any local, autonomous, state and/or national governments on its LICENSED
PRODUCTS manufactured, imported, exported, distributed, marketed, promoted, advertised and/or sold, and the PARTIES shall reasonably cooperate with each other in obtaining exemption from withholding taxes where available under applicable law. 

 

	5.	 Term and Termination 

 

	5.1	 This AGREEMENT shall become effective as of the EFFECTIVE DATE and shall continue in effect until
December 31, 2021 (the “TERM”). Unless this AGREEMENT is terminated before the end of TERM pursuant to Section 5.2, 5.3 or 5.4, at the request of a PARTY the PARTIES shall in good faith, commence discussing a renewal at least
two (2) months prior to the end of TERM, including the consideration for renewal and the adjustment of the scope of LICENSED PRODUCTS under this AGREEMENT. 

 

	5.2	 If, during the TERM, a PARTY or any of its AFFILIATES files any suit for infringement of any LICENSED PATENTS
against the other PARTY or any of its AFFILIATES with regard to any product which is not a LICENSED PRODUCT (such PARTY hereinafter referred to as “ASSERTING PARTY”), the other PARTY shall have the right to terminate the ASSERTING
PARTY’s and its AFFILIATES’ rights and licenses granted pursuant to this AGREEMENT with immediate effect. Should the other PARTY exercise this right: (i) 

  

			
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the other PARTY’s obligations (including without limitation any payment obligations) set forth in this AGREEMENT shall likewise terminate with immediate effect; and (ii) the licenses
granted to the other PARTY under this AGREEMENT shall survive for the TERM, and the ASSERTING PARTY’s obligations (including without limitation any payment obligations) set forth in this AGREEMENT shall likewise survive for the TERM. The terms
and conditions of this AGREEMENT shall be otherwise unaffected. 

 If MAGNACHIP is the ASSERTING PARTY and INFINEON terminates
MAGNACHIP’s and its AFFILIATES’ rights and licenses granted pursuant to this AGREEMENT, all BALANCING PAYMENTS as set forth in Annex 1 shall automatically become due and payable in full on the effective date of such termination. 

In the event of a PARTY being acquired by a THIRD PARTY pursuant to Section 6.2, the other PARTY shall have the right to terminate this
Section 5.2 with immediate effect by giving written notice to the ACQUIRED PARTY within ninety (90) calendar days from receiving written notice of such acquisition. 
  

	5.3	 Either PARTY may terminate this AGREEMENT with immediate effect by giving written notice to the other PARTY if
such other PARTY: (a) becomes insolvent or makes an assignment for the benefit of creditors, or attempts to effect a composition with creditors; (b) suspends normal business operations; or (c) files a petition for bankruptcy,
insolvency or reorganization, or for the appointment of a receiver, trustee or custodian for any creditor or its property (or any substantial portion thereof), or any similar petition or commencement of any similar action under applicable law, or
has such a petition filed or proceeding commenced against it and such a petition filed or proceeding commenced against it is not dismissed within sixty (60) calendar days. 

 

	5.4	 If any BALANCING PAYMENT is not made in full on or prior to the applicable due date, then INFINEON may
terminate this AGREEMENT by providing written notice to MAGNACHIP; provided, however, that such written notice shall include sufficient details to inform MAGNACHIP as to the reason for the termination notice, including the amount due;
and provided further that, MAGNACHIP shall have thirty (30) calendar days from receipt of such notice to cure its non-payment. If MAGNACHIP fails to make the required payment within such 30-day period, then INFINEON’s termination notice shall become effective immediately upon expiration of such 30-day period. In the event of termination by INFINEON
pursuant to this Section 5.4, the licenses and rights granted hereunder to INFINEON shall remain unaffected for the duration of the TERM. 

  

	5.5	 If INFINEON terminates this AGREEMENT pursuant to Section 5.3 or 5.4, BALANCING PAYMENT NO. 1, and
BALANCING PAYMENT NO. 2, to the extent not already paid, and any other BALANCING PAYMENT that is due but unpaid, shall automatically become due and payable in full on the effective date of such termination. 

 

	5.6	 The releases given to each PARTY pursuant to Section 3 of this AGREEMENT shall, once granted, be
irrevocable and shall not be affected by the expiration or termination of this AGREEMENT. Sections 1, 3 and 7 shall survive the expiration or termination of this AGREEMENT. 

  

			
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	6.	 Acquisition; Transfer; Spin-off 

 

	6.1	 A PARTY acquiring a THIRD PARTY 

If, after the EFFECTIVE DATE, a PARTY or any of its AFFILIATES (“ACQUIRING PARTY”) either acquires an entity or acquires
substantially all of the assets from an entity (“ACQUIRED ENTITY”), the following shall apply: 
  

	 	(a)	 The license, release and other rights granted herein to the ACQUIRING PARTY with respect to the LICENSED
PATENTS shall apply to products of the ACQUIRED ENTITY, to the extent that such products of the ACQUIRED ENTITY would be considered LICENSED PRODUCTS under this AGREEMENT if they were products of the ACQUIRING PARTY. 

 

	 	(b)	 In the event that, at the date of the acquisition, the ACQUIRED ENTITY is licensed by the other PARTY to this
AGREEMENT through an existing license agreement covering the same LICENSED PRODUCTS and LICENSED PATENTS, or parts thereof, as licensed under this AGREEMENT (“PRIOR LICENSE AGREEMENT”), pursuant to which payments are to be made by the
ACQUIRED ENTITY to the other PARTY, the following shall apply: In order to avoid double payment for the same license, the BALANCING PAYMENTS to be made under this AGREEMENT shall prevail over payments or royalties to be made under the PRIOR LICENSE
AGREEMENT to the extent both agreements cover the same LICENSED PATENTS and LICENSED PRODUCTS. To the extent the PRIOR LICENSE AGREEMENT covers LICENSED PATENTS or LICENSED PRODUCTS not subject to this AGREEMENT, the royalties or other payments due
for that scope of the PRIOR LICENSE AGREEMENT shall continue to be made by the ACQUIRING PARTY or ACQUIRED ENTITY to the other PARTY pursuant to the payment terms of the PRIOR LICENSE AGREEMENT. 

 

	 	(c)	 The other PARTY to this AGREEMENT shall have the right to terminate the application of the license in
Section 6.1(a) to products of the ACQUIRED ENTITY based on a pending patent infringement suit or alleged patent infringement pursuant to a notice letter involving the ACQUIRED ENTITY or any of its SUBSIDIARIES and the other PARTY to this
AGREEMENT or any of its SUBSIDIARIES whether or not related to any of the LICENSED PATENTS or LICENSED PRODUCTS. 

  

	6.2	 A PARTY being acquired by a THIRD PARTY 

If one PARTY (the “ACQUIRED PARTY”) is acquired by a THIRD PARTY (“ACQUIRING ENTITY”): 

 

	 	(a)	 the ACQUIRED PARTY shall promptly give notice of such acquisition to the other PARTY; and

  

			
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	 	(b)	 the license granted to the ACQUIRED PARTY and all sublicenses (if any) granted to the ACQUIRED PARTY’S
remaining AFFILIATES shall automatically become limited to apply to those LICENSED PRODUCTS, including error corrections and minor adaptations pursuant to customer requirements which are created by the ACQUIRED PARTY in the normal course of
business, that have been marketed by said ACQUIRED PARTY (or, in the case of an AFFILIATE, by such AFFILIATE) within the licenses granted in this AGREEMENT (or within the sublicense in the case of an AFFILIATE) prior to such acquisition; and

  

	 	(c)	 following such acquisition, the license granted to the ACQUIRED PARTY shall be limited in the twelve
(12) months immediately following such acquisition to a volume of LICENSED PRODUCTS having an aggregate net selling price equal to no more than the aggregate net selling price of such LICENSED PRODUCTS in the twelve (12) months preceding
such acquisition plus ten percent (10%) and shall be limited, in each of the successive twelve-month periods following such acquisition, to a volume of LICENSED PRODUCTS having an aggregate net selling price equal to no more than the aggregate net
selling price of such LICENSED PRODUCTS for the immediately preceding twelve-month period plus ten percent (10%). 

 In the
event the ACQUIRING ENTITY is a COMPETITOR or a supplier to a COMPETITOR of the other PARTY or any of its AFFILIATES at the time of the acquisition, then such other PARTY shall have the right to terminate this AGREEMENT with immediate effect by
giving written notice to the ACQUIRED PARTY within ninety (90) calendar days from receiving written notice of the acquisition. In the event of a disagreement between the ACQUIRED ENTITY and such other PARTY regarding whether the ACQUIRING
ENTITY is a COMPETITOR or a supplier to a COMPETITOR, the ACQUIRED PARTY shall have the burden of proof of establishing that the ACQUIRING ENTITY is neither a COMPETITOR nor a supplier to a COMPETITOR of such other PARTY. 

If INFINEON terminates this AGREEMENT pursuant to the foregoing sentence, then BALANCING PAYMENT NO. 1, and BALANCING PAYMENT NO. 2,
to the extent not already paid, and any other BALANCING PAYMENT that is due but unpaid, shall immediately become due and payable in full. 

Notwithstanding the foregoing, except for BALANCING PAYMENT NO. 1, and BALANCING PAYMENT NO. 2, if INFINEON terminates this AGREEMENT
pursuant to this Section 6.2, then any BALANCING PAYMENT, which had already been paid for the year during which such termination occurs, shall be subject to a pro rata refund. The amount of such refund shall be calculated by multiplying the
amount of the applicable BALANCING PAYMENT by a fraction whose numerator is the number of calendar days remaining in the calendar year and whose denominator is 365. INFINEON shall pay such refund within thirty (30) calendar days after receipt
of a proper invoice issued upon termination of this AGREEMENT pursuant to this Section 6.2. As an example, if this AGREEMENT is terminated after BALANCING PAYMENT NO. 4 is made and there are two hundred (200) calendar days remaining
in the calendar year 2019, then INFINEON shall pay a refund of [***] to MAGNACHIP. 

  

			
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 [***] 
  

 In the event of a PRIOR LICENSE AGREEMENT between the ACQUIRING ENTITY and the other PARTY,
pursuant to which royalties or other payments are to be made by the ACQUIRING ENTITY to the other PARTY, such royalties or other payments shall continue to be made by the ACQUIRING ENTITY to the other PARTY pursuant to the payment terms of the PRIOR
LICENSE AGREEMENT. 
  

	6.3	 If, subsequent to the EFFECTIVE DATE, a PARTY (the “TRANSFERRING PARTY”) either:

  

	 	(i)	 transfers a business unit producing LICENSED PRODUCTS or a product line with LICENSED PRODUCTS to a THIRD PARTY
without transferring the SUBSIDIARY to said THIRD PARTY; or 

  

	 	(ii)	 spins off a SUBSIDIARY producing LICENSED PRODUCTS (either by disposing of it to a THIRD PARTY or in any other
manner reducing ownership or control so that the spun-off entity is no longer a SUBSIDIARY of the TRANSFERRING PARTY) (in each case of (i) and (ii) above, the THIRD PARTY transferee or spun-off ex-SUBSIDIARY hereinafter referred to as “RECIPIENT”), then the following shall apply: 

After written request made jointly by the TRANSFERRING PARTY and the RECIPIENT to the other PARTY hereto, which is made within one hundred and
twenty (120) calendar days following the effective date of such transfer or spin off (the “TRANSFER NOTICE”), the other PARTY hereto shall grant a license at no further cost (otherwise under the same terms as the license granted to
the TRANSFERRING PARTY herein) to the RECIPIENT under its LICENSED PATENTS, provided that: 
  

	 	(a)	 the license shall be as broad as the scope of the license granted herein to the TRANSFERRING PARTY, but no
broader than necessary to cover the particular LICENSED PRODUCTS, assets and/or business being transferred or spun off, of the ex-SUBSIDIARY, including derivatives thereof and extensions thereto created
pursuant to the normal course of business; and 

  

	 	(b)	 the RECIPIENT shall grant to such other PARTY a royalty-free license (under the same terms as the license
granted to such other PARTY herein) under all RECIPIENT LICENSED PATENTS for all LICENSED PRODUCTS of such other PARTY; 

  

	 	(c)	 this Section 6.3, Section 3, Section 4 and Section 5.2 shall be omitted from the license
granted to the RECIPIENT; and 

  

	 	(d)	 the license granted to the RECIPIENT and granted by the RECIPIENT to the other PARTY shall terminate if the
license granted to the TRANSFERRING PARTY terminates or is terminated for any reason. 

  

			
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 Any payments under this AGREEMENT shall continue to be made by the TRANSFERRING PARTY to the
other PARTY, unless upon written request made jointly by the TRANSFERRING PARTY and the RECIPIENT, the other PARTY agrees in writing to receive a certain portion of any payments due hereunder directly from the RECIPIENT. 

Notwithstanding the foregoing, if the RECIPIENT is a COMPETITOR or a supplier to a COMPETITOR of the other PARTY or any of its AFFILIATES at
the time of the transfer or spin-off, as applicable, then such other PARTY shall have the right to contest its obligation under this Section 6.3 to grant a license to the RECIPIENT by providing written
notice (the “CONTEST NOTICE”) to the TRANSFERRING PARTY within ninety (90) calendar days after delivery of the TRANSFER NOTICE. For a period of sixty (60) calendar days after delivery of the CONTEST NOTICE, such other PARTY, the
TRANSFERRING PARTY and the RECIPIENT shall engage in good faith discussions to resolve the issue. In the event of a disagreement regarding whether the RECIPIENT is a COMPETITOR or a supplier to a COMPETITOR, the TRANSFERRING PARTY shall have the
burden of proof of establishing that the RECIPIENT is neither a COMPETITOR nor a supplier to a COMPETITOR of such other PARTY. If the three parties are unable to resolve the issue within such sixty (60) day period, then such other PARTY shall
not be obligated under this Section 6.3 to grant a license to the RECIPIENT. 
 In the event that the transfer of a business unit
contemplated in this Section 6.3 consists of or includes all or substantially all of the MAGNACHIP POWER BUSINESS LINE, then INFINEON, MAGNACHIP and the RECIPIENT shall engage in good faith discussions for the purpose of assigning
MAGNACHIP’s rights and obligations under this AGREEMENT to the RECIPIENT under substantially the same terms and conditions of this AGREEMENT; provided that, if the RECIPIENT is a COMPETITOR or a supplier to a COMPETITOR of INFINEON or
any of its AFFILIATES at the time of the transfer or spin-off, as applicable, then the immediately preceding paragraph shall nevertheless apply. 

 

	7.	 Miscellaneous 

 

	7.1	 Either PARTY shall be free to assign or grant any right under any of its LICENSED PATENTS provided that
the licenses and rights granted hereunder remain unaffected. 

  

	7.2	 Without prejudice to Sections 6.2 and 6.3, neither PARTY shall assign any of its rights (other than the right
to receive payments) or delegate any of its obligations under this AGREEMENT. Any attempt to do so shall be void. However, a PARTY which undergoes reorganization may assign such rights and delegate such obligations to its legal successor,
provided that after the reorganization, the successor and its SUBSIDIARIES will have essentially the same assets as such PARTY and its SUBSIDIARIES had prior to the reorganization. 

 

	7.3	 Notices and other communications shall be in writing and shall be deemed duly given (a) if by facsimile,
on the date of written confirmation of receipt by facsimile, e-mail or otherwise, or (b) on the third (3rd) business day following the date of dispatch if delivered utilizing a express courier service by
a recognized international courier. All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such other instructions as may be designated in writing by the Party to receive such notice: 

  

			
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	For INFINEON:	  	For MAGNACHIP:
	Vice President Intellectual Property	  	General Counsel
	Infineon Technologies AG	  	MagnaChip Semiconductor, Ltd.
	[***]	  	[***]
	Fax: [***]	  	Fax: [***]
	Email: [***]	  	Email: [***]

 with a copy to 

Infineon Technologies AG 
 Legal
Department 
 [***] 
 Fax: [***]

 E-mail: [***] 
  

	7.4	 Each PARTY represents and warrants that it has the full right and power to grant the licenses and releases set
forth in Sections 2 and 3. Neither PARTY makes any other representation or warranty, express or implied, nor shall either PARTY have any liability in respect of any infringement of patents or other rights of THIRD PARTIES due to the other
PARTY’s operation under the license herein granted. In no event shall either PARTY be liable to the other PARTY by reason of this AGREEMENT or any breach or termination of this AGREEMENT for any loss of profits or revenue, business
interruptions, cost of capital or any special, incidental or consequential damages. INFINEON represents and warrants that it has the proper power and authority to cause its AFFILIATES to comply with Section 2.1, and INFINEON hereby agrees to
cause such AFFILIATES to comply with Section 2.1. MX represents and warrants that it has the proper power and authority to cause MAGNACHIP’s AFFILIATES to comply with Section 2.2, and MX hereby agrees to cause such AFFILIATES to
comply with Section 2.2. 

  

	7.5	 In particular, without limitation, nothing contained in this AGREEMENT shall be construed as:

  

	 	(a)	 restricting the right of a PARTY to make, use, sell, lease of otherwise dispose of any particular product or
products not herein licensed; 

  

	 	(b)	 an admission by a PARTY, or a warranty or representation of a PARTY, as to the validity and/or scope of the
LICENSED PATENTS, or a limitation of a PARTY to contest, in any proceeding the validity and/or scope thereof; 

  

	 	(c)	 a warranty or representation by a PARTY that any manufacture, use, import, sale, lease or other disposition of
LICENSED PRODUCTS will be free from infringement of any patent or other intellectual property rights, other than the LICENSED PATENTS; or 

  

	 	(d)	 an admission by a PARTY that it has infringed any patent or other intellectual property rights of the other
PARTY. 

  

			
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	7.6	 Neither PARTY shall have any obligation hereunder to institute any action or suit against THIRD PARTIES for
infringement of any of its LICENSED PATENTS or to defend any action or suit brought by a third party which challenges or concerns the validity of any of its LICENSED PATENTS. Neither PARTY shall have any right to institute any action or suit against
THIRD PARTIES for infringement of any of the other PARTY’S LICENSED PATENTS. Neither PARTY, nor any of its AFFILIATES, is required to file any patent application, or to secure any patent or patent rights, or to maintain any patent in force.

  

	7.7	 This AGREEMENT including the arbitration agreement in Section 7.8 shall be subject to the substantive law
in force in the State of New York, USA, without reference to its conflicts of law provisions. The application of the United Nations Convention on Contracts for the International Sale of Goods of April 11, 1980 shall be excluded.

  

	7.8	 All disputes arising out of or in connection with this AGREEMENT, including any question regarding its
existence, validity or termination, shall be settled finally by arbitration under the Rules of Arbitration of the International Chamber of Commerce, Paris (“ICC”) / (“Rules”) by three arbitrators without recourse to the courts of
any jurisdiction. Each PARTY shall nominate one arbitrator and the two party nominated arbitrators shall nominate the chairman within thirty (30) calendar days. In case the two party nominated arbitrators are unable to nominate a chairman,
he/she shall be nominated by the ICC in accordance with the Rules. Place of Arbitration shall be Zurich, Switzerland. The language to be used in the arbitration proceeding shall be English. The arbitration award shall be rendered in writing and
shall be binding upon the PARTIES. Nothing in this AGREEMENT shall preclude either PARTY from seeking interim measures of protection in any court of competent jurisdiction. The courts at the place of arbitration shall not have exclusive jurisdiction
to entertain such applications. Notwithstanding anything in this Section 7.8 to the contrary, a PARTY or any AFFILIATE of a PARTY shall be free to enforce this AGREEMENT, or any of the terms or conditions hereof, before any judicial,
administrative or other body in which the other PARTY, any AFFILIATE of such other PARTY or any successor in interest to any of such other PARTY’s LICENSED PATENTS has asserted or claimed that such PARTY or any AFFILILATE of such PARTY is or
may be infringing one or more of such other PARTY’s LICENSED PATENTS. 

  

	7.9	 This AGREEMENT shall not be binding upon the PARTIES until it has been signed by or on behalf of each PARTY. No
amendment or modification hereof shall be valid or binding upon the PARTIES unless made in writing and signed as aforesaid, except that either PARTY may amend its address in Section 7.3 by written notice to the other PARTY. The requirement of
the written form itself can only be waived in writing. 

  

	7.10	 Neither PARTY shall use or refer to this AGREEMENT or any of its provisions in any promotional activity, public
announcement, press release or other communication with THIRD PARTIES. Notwithstanding the foregoing, each PARTY may disclose the existence of this AGREEMENT and what products are LICENSED PRODUCTS to THIRD PARTY customers and/or potential customers
who have a reasonable need to know such information and who are bound to confidentiality obligations not less stringent than the obligations of this AGREEMENT. 

  

			
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 During the TERM, each PARTY agrees not to disclose any term or condition of this AGREEMENT,
as well as any information provided hereunder by a PARTY in performance of its obligations hereunder, to any THIRD PARTY without the prior written consent of the other PARTY. This obligation is subject to the following exceptions: 

 

	 	(a)	 disclosure is permissible if required by government or court order, provided the PARTY required to
disclose first gives the other PARTY prior written notice to enable it to seek a protective order; 

  

	 	(b)	 disclosure is permissible if otherwise required by law; 

 

	 	(c)	 disclosure is permissible if required to enforce rights under this AGREEMENT; 

 

	 	(d)	 each PARTY may use similar terms and conditions in other agreements; 

 

	 	(e)	 each PARTY may disclose, subject to a written confidentiality agreement or other legally binding
confidentiality obligation (such as an attorney’s duty of confidentiality), this AGREEMENT to its accountants, attorneys and financial advisors, solely to the extent necessary for the performance of their services, and a redacted version of
this AGREEMENT limited to the scope of the licenses and releases granted hereunder to its present or future providers of venture capital and/or potential investors in or acquirers of such PARTY, any of its AFFILIATES or product lines which qualify
under Section 6. 

  

	7.11	 If any provision of this AGREEMENT is held to be invalid, illegal or unenforceable under applicable law the
remaining provisions shall continue to be in full force and effect. The PARTIES undertake to replace the invalid provision or parts thereof by a new provision which will meet as closely as possible the economic effect intended by the PARTIES at the
time of execution of this AGREEMENT. 

  

	7.12	 This AGREEMENT embodies the entire understanding of the PARTIES with respect to the LICENSED PATENTS, and
replaces any prior oral or written communications between them. 

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] 

  

			
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 IN WITNESS WHEREOF, the PARTIES hereto have caused this AGREEMENT to be executed by their respective duly
authorized representatives: 
  

									
	MagnaChip Semiconductor, Ltd.	 		 	Infineon Technologies AG
			
	Date: May 31, 2017	 		 	Date: June 16, 2017
					
	By:	 	 /s/ Theodore S. Kim
	 		 	By:	 	 /s/ [***]

	Name: Theodore S. Kim	 		 	Name: [***]
	Title: Executive Vice President & General Counsel	 		 	Title: Director & Corporate Legal Counsel
					
	By:	 	 /s/ Woung Moo Lee
	 		 	By:	 	 /s/ [***]

	Name: Woung Moo Lee	 		 	Name: [***]
	Title: Executive Vice President & General Manager of SPG	 		 	Title: Senior Director
		
	AGREED only with respect to Section 7.4 of this AGREEMENT:	 	
			
	MagnaChip Semiconductor Corporation	 		 	
			
	Date: May 31, 2017	 		 	
				
	By:	 	 /s/ Theodore S. Kim
	 		 	
	Name: Theodore S. Kim	 		 	
	Title: Executive Vice President & General Counsel	 		 	
				
	By:	 	 /s/ Woung Moo Lee
	 		 	
	Name: Woung Moo Lee	 		 	
	Title: Executive Vice President & General Manager of SPG	 		 	

  

			
	Infineon – MagnaChip Confidential	  	Page 19 of 20

 [***] 
  

 ANNEX 1 

[***] 

  

			
	Infineon – MagnaChip Confidential	  	Page 20 of 20

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