Document:

exv10w17

Exhibit 10.17

TRANSLATION

Basic Contract on Joint Development and Grant of License

This Basic Contract on Joint Development and Grant of License (hereinafter “Contract”) is made and
entered into as of November 10, 2006, by between MagnaChip Semiconductor, Ltd. (hereinafter “MC”)
and Silicon Works Co., Ltd. (hereinafter “SW”).

Article 1 (Purpose)

The Agreement is designed to define rights and obligations of the two parties in SW’s granting to
MC the license to manufacture and sell the contract product as defined in Article 2 of the Contract
(“Contract Product”) that MC and SW co-developed by utilizing the technical information that SW had
provided for the Contract Product (“Technical Information”).

Article 2 (Definition)

	 	1.	 	“Contract Product” shall mean all products that MC and
SW are currently co-developing and will co-develop in
the future and all their Derivative Products, and
product specifications for the Contract Product shall
be specified in the Contract on Development of the
Contract Product.
	 
	 	2.	 	“Derivative Product” shall mean any product whose
gamma is changed from the Contract Product (in case of
source driver) and any product whose design is changed
from the Contract Product (reinforcement and
complement of its characteristics).
	 
	 	3.	 	“Technical Information” shall mean any technical
information, including but not limited to product
specifications, test plan, assembly plan and RT plan
that are required for MC to manufacture and sell the
Contract Product. The Technical Information which
shall be kept confidential is classified and specified
as Confidential Information. The details are based on
“Attachment 1.”
	 
	 	4.	 	“Co-development” shall mean a series of development
activities for which SW takes the responsibility of
design for the Contract Product, MC manufactures it,
SW and MC jointly validate characteristics of the
products and MC completes the development in
accordance with the rule on new product introduction
(“NPI,” hereinafter).

Article 3 (Grant of License)

	 	1.	 	SW shall grant to MC the license that permits MC to
manufacture and sell the Contract Product using SW’s
Technical Information (including license to
subcontract manufacturing and re-license).
	 
	 	2.	 	MC shall pay a running royalty to SW as prescribed in
Article 7 of this Contract and in the Development
Contract for the Contract Product in return for the
grant of license as prescribed paragraph 1 of this
Article.

Article 4 (Conduct development work)

	 	1.	 	In accordance with the Product Specification as
prescribed in the Development Contract for the
Contract Product, MC and SW shall conduct development
work in a good faith. In case of “Derivative Product,”
MC and SW may determine product specification and
development schedule through discussion when the
development is needed.
	 
	 	2.	 	When MC manufactures the Contract Product, SW shall
provide needed technological support to MC based on
the Technical Information prescribed in paragraph 3,
Article 2 of this Contract.

 

 

TRANSLATION

	 	3.	 	In case the development work is hindered due to the reasons for
which one of the two parties is not responsible during the
development work that was being executed based on this Contract,
the party shall immediately notify the other party of the
disturbance and if the reason for the disturbance is not removed
through mutual consultation, either of the two parties may
terminate this Contract by delivering written notice to the other
party without taking any responsibility for contract violation.
	 
	 	4.	 	The development work stipulated in this Contract shall
be deemed to be completed at the time when the
Contract Product or the Derivative Product passes
examination by the Quality Evaluation and Judgment
Committee as stipulated in MC’s NPI, and SW shall
provide utmost cooperation so that the Contract
Product or Derivative Product passes the examination
by the Quality Evaluation and Judgment Committee.

Article 5 (Buyer of the Contract Product)

	 	1.	 	The Contract Product that MC manufactured or produced
in accordance with license granted under Article 3 of
this Contract, shall be supplied to LG.Philips LCD
Co., Ltd., before any other entity in the volume that
was agreed with LG.Philips LCD Co., Ltd.
	 
	 	2.	 	After fulfilling the supply obligation to LG.Philips
LCD Co., Ltd., stipulated in Article 1 of the
Contract, MC may sell the Contract Product to a third
party without any restriction, under the condition
that when MC sells the Contract Product to a third
party, the timing shall be six (6) months or more
after LG.Philips LCD Co., Ltd. conducted the first
mass production of LCD modules that have the Contract
Product attached.

Article 6 (Provision of Technical Information)

	 	1.	 	SW shall provide Technical Information on the Contract
Product as prescribed in Attachment 1 to MC under its
responsibility and at its cost as per procedures and
methods mutually agreed between the two parties.
	 
	 	2.	 	MC may ask for additional Technical Information
without charge that is required to manufacture and
sell the Contract Product through consultation with
SW, and SW shall respond to such request.

Article 7 (Payment of running royalty)

	 	1.	 	MC shall pay a running royalty which is equivalent to
a certain percentage of the Net Selling Price” of the
Contract Product in return for the license granted by
SW based on this Contract by end of the next month of
the month when the Contract Product was sold.
	 
	 	2.	 	The Net Selling Price referred to in this Contract
shall mean the total selling amount minus all the
expenses incurred for sales of the Contract Product
including, but limited to the following amount and it
is set as 0.1% of the total selling price.

	 	 	 	� Discount given in accordance with transaction discount practice
	 
	 	 	 	‚ Price of the Contract Products that were returned due to defect
	 
	 	 	 	ƒ Value-added tax imposed in relation to sale of the Contract Product
	 
	 	 	 	„ Insurance and transportation charges incurred in
relation to sale of the Contract Product

	 	3.	 	The rate of the running royalty for the Contract
Product is determined based on agreement between the
two parties when the Development Contract is sealed
and the Development Contract, in principle, shall be
signed 15 days before initiation of development of the
Contract Product.

 

 

TRANSLATION

	 	4.	 	The rate of the running royalty, payment terms and penalty
interest due to delinquencies are determined and prescribed in the
Development Contract.

Article 8 (Development cost and schedule)

	 	1.	 	The cost for design of the Contract Product is wholly borne by SW.
	 
	 	2.	 	The sample production cost for the Contract Product is
wholly borne by MC under the condition that Masks
consumed in this case shall be limited to 1.5 sets per
product.
	 
	 	3.	 	Additional Mask costs that exceed the limit of
paragraph 2 of this Article shall be paid by the party
that caused those costs.
	 
	 	4.	 	The development schedule for the Contract Product is
agreed between the two parties to meet the deadlines
required by LG.Philips LCD Co., Ltd.

Article 9 (Technical Support)

	 	1.	 	After finishing the first manufacturing of the
Contract Product using Technical Information provided
by SW, MC shall provide the reliability test result
for the products. If the reliability test result
indicates any problem that is caused by flawed design,
SW shall provide the technical support to MC to
resolve the identified problem with no charge.
	 
	 	2.	 	When there is any request by MC during the Contract
period, SW shall provide to MC with no charge the
design related technical support required for
manufacturing, testing, field application engineering
(FAE) and sale of the Contract Product using the
Technical Information based on mutual consultation
between the two parties. The detailed contents and
method of technical support are determined and agreed
by MC and SW based on MC’s request.

Article 10 (Ownership)

	 	1.	 	The intellectual properties for the technical
information that MC provided for the Contract Product
is owned by MC and those for the technical information
that SW provided for the Contract Product is owned by
SW.
	 
	 	2.	 	The technical information that is developed jointly by
MC and SW is co-owned by MC and SW and in case the
co-owned technical information violates intellectual
property of a third who raises claim for that or files
related lawsuits, MC and SW shall respond to the claim
or the lawsuits under the joint responsibility and
joint payment for the incurred costs.

Article 11 (Warranty)

	 	1.	 	In case MC finds any design flaw(s) after careful
observation during sales or use of the Contract
Product, it my take corrective measures including, but
not limited to, recalls or may request that SW fix the
flaw(s) including, but not limited to, design
modification.
	 
	 	2.	 	In case of paragraph 1, SW shall take the
responsibility of fixing the flaw(s) at its expense
and compensate for all the losses that may have
inflicted on MC due to design flaw(s) including costs
for recall and product liability to a third party.

 

 

TRANSLATION

Article 12 (Report and Investigation)

If deemed needed, SW, at its costs, may visit MC’s business sites to investigate materials used to
calculate the running royalty or request MC to present related materials as long as such activities
do not disturb MC’s usual business. But in this case, SW shall notify MC of purpose, timing, etc.
of such visits 15 days in advance at the latest and MC shall provide utmost cooperation to SW’s
investigation. SW’s visits and investigations as per this Article shall not exceed twice a year.

Article 13 (Intellectual property rights and indemnity)

In case a third party raises claim or files a lawsuit against MC or its customers for the reason
that the technical information related to the Contract Product that SW has provided as per this
Contract, SW shall indemnify MC or MC’s customers from such claim or lawsuit under its
responsibility and at its costs and at the same time, it shall compensate for the entire loss that
is inflicted on MC due to such claim or lawsuit.

Article 14 (Confidentiality)

Each of the parties shall not publicize existence of the Contract, its contents, all the technical
information and related technical materials that it acquired or was provided from the other party
in relation to the Contract, to others than persons concerned in this Contract without written
agreement of the other party for five years following termination or expiry of the Contract and it
shall not use or partially use the Contract for other purposes than is prescribed in this Contract.
But MC may reveal non-confidential technical information to a third party with no prior written
agreement from SW only if such revelation is needed for MC to sell the Contract Product to the
third party for its business purposes.

Article 15 (Contract period and termination)

	 	1.	 	Unless terminated per paragraph 2 and 3 of this
Article, this Contract remains effective for five
years after it is signed, and it is automatically
renewed every year in case there is no written notice
of termination of either of the two parties three
months before expiry of the Contract at the latest.
	 
	 	2.	 	In case either of the parties violates the Contract,
the other party may demand the violating party, in
written manner, to execute its obligations within 30
days at minimum and in case such obligations are not
fulfilled within the time frame given, it may
immediately terminate the Contract via written notice.
	 
	 	3.	 	In case either of the following occurs to either of
the two parties, the other party may immediately
terminate the Contract via written notice.

	 	a.	 	Bills or checks that are issued, guaranteed for
payment or accepted by either of the two parties
bounced or are suspended for trading.
	 
	 	b.	 	Forcible execution including seizure, provisional
seizure and provisional disposition, is commenced to
either of the two parties or their main assets
	 
	 	c.	 	Bankruptcy, liquidation, composition or company
disorganization is commenced to either of the two
parties.
	 
	 	d.	 	Due to any other events, usual business cannot be conducted.

	 	4.	 	When the Contract is terminated or expired, the
license granted as per this Contract immediately loses
its effect and MC shall immediately return to SW or
scrap according to SW’s instruction all related
technical documents and other materials (including
copies) held by MC or its subcontractors. But the
Contract Product that is being

 

 

TRANSLATION

	 	 	 	manufactured or kept in stock may be sold, used or disposed in accordance
with terms and conditions of the Contract within one year after the termination
or expiration and it may postpone return of technical document or other
materials during the period.

Article 16 (Compensation for damage)

Unless otherwise prescribed in this Contract, either of the two parties shall compensate for direct
and actual losses that can be inflected on the other party in relation to execution of this
Contract due to the reasons that it is responsible for.

Article 17 (Force majeure)

	 	1.	 	Should either of the parties to this Contract fail to
perform this Contract due to force majeure, such as
earthquake, hurricane, flood, fire or any other
unpreventable or unavoidable event, the party affected
by the force majeure may be exempt from liability and
shall immediately notify the other party in written
form about the force majeure.
	 
	 	2.	 	In case such force majeure continues for 60 days or
longer, either of the two parties may immediately
terminate the Contract in written form without any
responsibility for the other party.

Article 18 (Restriction on assignment)

Either of the two parties shall not assign to others this Contract or its rights prescribed in this
Contract or have others fulfill its obligations for it, without prior written agreement of the
other party. But, if needed to manufacture or sell the Contract Product, MC may assign to others
this Contract or its rights prescribed in this Contract or have others fulfill its obligations for
it under prior consultation with SW.

Article 19 (Others)

	 	1.	 	All disputes that can happen in relation to this
Contract are resolved by Seoul Central District Court
which shall be the competent court.
	 
	 	2.	 	The articles of the Contract including, but not
limited to Article 10, 11, 13, 14, 15, 16, 18 and any
other articles that shall remain effective even after
the Contract expires or is terminated, if need be.
	 
	 	3.	 	Deficiencies to this Contract or matters in relation
to its interpretation are determined through mutual
agreement and in case no agreement is established,
commercial practices apply and in case no such
commercial practices do not exist, related laws and
regulations apply.
	 
	 	4.	 	The Contract may be revised based on written agreement
and sealing (signature) of the two parties.
	 
	 	5.	 	The agreement reached verbally or in written form
before this Contract is sealed shall lose its effect
and replaced by this Contract.

Each of the two parties produces two copies of the Contract and keeps one copy each after signing
it in order to prove existence and contents of the Contract.

 

 

TRANSLATION

Nov. 10, 2006

MC: Magnachip Semiconductor, Ltd.

361- 725, 1, Hyangjeong-dong, Heongdeok-gu, Cheongju-si, Korea

CEO Sang Ho Park

SW: 104-13 Munji-dong, Yuseong-gu, Daejeon-si 305-380

CEO Dae Keun Han

Attachment 1 Technical Information

	 	1.	 	Test Plan
	 
	 	2.	 	Assembly Plan
	 
	 	3.	 	R/T Plan
	 
	 	4.	 	Custom Tape manufacturing information
	 
	 	5.	 	Mask (FAB/Bump) manufacturing informationexv10w18

Exhibit 10.18

Master Service Agreement

This Master Service Agreement (hereinafter referred to as the “Agreement”) on manufacturing
and supply of goods is made and entered into by and between Sharp Corporation (“Sharp”) and Hyundai
Electronics Japan Co., Ltd (“Hyundai”).

Article 1 (Basic Elements)

	1.	 	Sharp and Hyundai shall execute the Agreement and all other transactions (hereinafter
referred to as “Individual Agreements”) signed under the Agreement in good faith and
sincerity, respecting mutual interest and based on mutual trust.

	2.	 	Details of the Agreement shall be applicable to all Individual Agreements signed between
Sharp and Hyundai unless otherwise stipulated in the special agreement.

Article 2 (Individual Agreements)

	1.	 	Individual Agreements shall stipulate names, quantities, delivery dates, delivery places,
delivery methods, unit prices or payment amount and other necessary descriptions of traded
goods (hereinafter referred to as “Completed Goods”).

	2.	 	Individual Agreements shall be deemed in effect in the case Sharp submits Hyundai an order
form containing descriptions mentioned in the preceding paragraph, in the case Hyundai issues
Sharp a confirmation of order or in the case Hyundai notifies Sharp its receipt of an order by
phone or other means.

	3.	 	Notwithstanding the preceding paragraph, in the case Hyundai fails to issue a confirmation of
order or take any measures upon receipt of the order form from Sharp, Hyundai shall be deemed
to have accepted the Sharp’s order.

	4.	 	In the case Sharp needs to change descriptions of an order form, it may do so after
consulting with Hyundai.

Article 3 (Supply of Materials)

	1.	 	Sharp may supply Hyundai necessary materials, components, half-finished products, and
products (hereinafter referred to as “Supplied Goods”) to produce Completed Goods. In this
case, Hyundai shall make use of Supplied Goods to produce Completed Goods. Supplied
Goods shall be managed pursuant to this Article and Article 5.

	 	i.	 	Supplied Goods are charged and their price, payment due date, payment method and
other necessary details shall be separately determined by Sharp. However, in the case
Sharp exceptionally acknowledges the necessity, they can be provided free of charge.
	 
	 	ii.	 	Sharp takes full ownership of Supplied Goods and Supplied Goods used in components,
work in progress and Completed Goods regardless of whether or not they are paid.
	 
	 	iii.	 	For those Supplied Goods that were delivered to Hyundai directly by Sharp’s appointed
vendor, Hyundai shall issue a goods receipt slip immediately.

1 / 7

 

	 	iv.	 	Upon receipt of Supplied Goods, Hyundai shall inspect them without any delay and in
the case defective goods or overage or shortage is found, such cases shall be immediately
reported to Sharp. Hyundai shall compensate for all damages caused by not sending out the
aforementioned notice promptly.
	 
	 	v.	 	To insure Supplied Goods, Sharp may subscribe to accident insurance and relevant cost
shall be borne by Hyundai. While Hyundai bears the cost, it has the right to choose an
insurance company.

Article 4 (Equipment Lease)

Sharp may lease machinery, tools and mold (hereinafter referred to as “Leased Equipment”) to
Hyundai if desired. Lease methods, processes, periods and expenses shall be separately determined
by Sharp.

Article 5 (Managing Supplied Goods and Leased Equipment)

	1.	 	Supplied Goods and Leased Equipment shall be managed in the following manner:

	 	i.	 	Hyundai shall keep Supplied Goods and Leased Equipment with the care of a good
manager and not use them for other than producing Completed Goods or transfer, sublease to
the third party or mortgage them without an approval of Sharp.
	 
	 	ii.	 	Hyundai shall clearly specify that Sharp takes full ownership of Supplied Goods and
Leased Equipment all the time.
	 
	 	iii.	 	In the case Supplied Goods and Leased Equipment managed by Hyundai are or may be put
or under seizure, provisional attachment or sentenced to provisional injunction by the
third party, Hyundai shall make a point and prove that they are the property of Sharp and
immediately notify Sharp and follow its instructions.
	 
	 	iv.	 	Sharp or Sharp’s agent is allowed to access Hyundai’s office and warehouse at all
times to check usage, storage and maintenance of Supplied Goods and Leased Equipment or
can ask Hyundai to submit the report.
	 
	 	v.	 	In the case Supplied Goods and Leased Equipment are demolished, tarnished, deformed
or stolen; Hyundai shall compensate the loss amount claimed by Sharp.
	 
	 	vi.	 	In the case Sharp demands return of Supplied Goods and Leased Equipment or the
Agreement is terminated for some reasons, Hyundai shall hand over Supplied Goods and
Leased Equipment to Sharp immediately at its own expense.
	 
	 	vii.	 	The blueprint, specifications and other documents borrowed by Hyundai from Sharp
shall also be returned to Sharp immediately as mentioned in the preceding paragraph.

Article 6 (Delivery of Completed Goods)

	1.	 	For delivery of Completed Goods, Hyundai shall deliver Sharp ordered quantities of Completed
Goods to the deliver location on the delivery date.
	 
	2.	 	In the case where Hyundai makes delivery of Completed Goods to the delivery location earlier
than the delivery date, Sharp may keep them. However, until hand-over is completed on the
delivery date except for the case pursuant to Article 3-2, Hyundai

2 / 7

 

	 	 	takes full ownership
of Completed Goods and bears related risks such as demolishing.
	 
	3.	 	In the case Sharp faces damages caused by delivery of Completed Goods not made in accordance
with Individual Agreements, Sharp may claim for such damages against Hyundai.
	 
	4.	 	At the time Completed Goods are delivered by Hyundai, it shall attach delivery slips
specified by Sharp. In the case Hyundai fails to fulfill this requirement, Sharp may refuse to
accept Completed Goods.
	 
	5.	 	In the case Hyundai enters Sharp’s premises; it shall follow Sharp’s instructions.
	 
	6.	 	In the case accidents attribute to Hyundai during delivery of Completed Goods, Hyundai shall
compensate Sharp or the third party for relevant damages.
	 
	7.	 	In the case Sharp asked for specific packaging and handling during delivery of Completed
Goods, they shall be fulfilled.
	 
	8.	 	Hyundai shall bear all expenses such as carriage charge, packing expense and insurance cost
incurred until the delivery of Completed Goods.

Article 7 (Receipt and Inspection)

	1.	 	At the time of receiving Completed Goods from Hyundai, Sharp shall issue a written slip
confirming goods receipt.

	2.	 	Upon receipt of goods, Sharp shall promptly inspect them. And if there are any defective
goods or shortages found, such cases are reported to Hyundai. Inspection methods, pass/fail
criteria and other details related to inspection shall be determined by Sharp.

	3.	 	After the inspection, only when Sharp acknowledges that goods are acceptable, hand-over of
goods shall be deemed to be completed.

	4.	 	Ownership of Completed Goods shall be transferred from Hyundai to Sharp at the time delivery
of Completed Goods mentioned in the preceding paragraph is finished.

	5.	 	Sharp may skip inspection of delivered Completed Goods described in the paragraph 2 depending
on the situation. In such case, the delivery is deemed to be completed at the time Sharp
issues a written slip confirming goods receipt.

Article 8 (Replacing Rejected Goods)

	1.	 	In the case Sharp found out defective Completed Goods are delivered or shortage detected and
reported this to Hyundai regardless the inspection described in the preceding paragraph took
place or not, Hyundai shall follow Sharp’s given instructions whether it be delivery of
replaced goods, repair of defective goods or fulfillment or shortage within the given
deadline.

	2.	 	In the case Sharp did not make any demands from preceding paragraph against handling
defective goods, deduction of payment shall be carried out and its details shall be separately
discussed and determined between Sharp and Hyundai.

	3.	 	In the case Sharp selected acceptable goods out of the defective lot and repaired defective
goods, all costs incurred shall be borne by Hyundai.

3 / 7

 

	4.	 	In the case Hyundai received a notification on defective goods and goods to be returned from
Sharp, Hyundai shall bear all costs incurred to receive them immediately. Damages incurred
from demolishing, tarnishing and deforming while Sharp is keeping defective goods and goods to
be returned in custody shall be borne by Hyundai unless their cause attributed to Sharp.

Article 9 (Quality Control)

	1.	 	Hyundai shall carry out proper quality control and strict shipping inspection during
production and delivery of Completed Goods and make sure product quality is maintained to
satisfy Sharp’s standards and specifications.

	2.	 	If desired, Sharp can ask Hyundai to establish proper quality control system and Hyundai
shall satisfy this.

Article 10 (Warranty for Goods)

	1.	 	Unless otherwise specified separately in the Individual Agreements, Hyundai shall offer Sharp
warrant of goods for one year since delivery of Completed Goods is made. In the case tarnished
Completed Goods are found during the warranty period, they shall be either replaced in
accordance with Sharp’s instructions or repaired with relevant costs borne by Hyundai within
the warranty period.

	2.	 	The warranty period described in the preceding paragraph may be extended depending on types
of Completed Goods upon discussion between Sharp and Hyundai.

	3.	 	In the case Sharp faced damages occurred from tarnished Completed Goods in accordance with
preceding paragraph 2, it can claim compensations for such damages against Hyundai.

Article 11 (Payment)

Sharp shall make payment to Hyundai for Completed Goods it received from Hyundai. The payment
method shall be decided separately upon discussion between Sharp and Hyundai.

Article 12 (Offset)

In the case Sharp holds credit obligation against Hyundai regardless of the Agreement, such credit
obligation and liabilities held against Hyundai may be set off regardless of a repayment date. In
this case, Sharp shall notify Hyundai of details.

Article 13 (Bearing of Risk)

Hyundai shall be responsible for such damages as demolishing, tarnishing and deforming of Completed
Goods occurred before hand-over except for those attributed to Sharp and Sharp shall be responsible
for such damages as demolishing, tarnishing and deforming of Completed Goods occurred after
hand-over except for those attributed to Hyundai.

4 / 7

 

Article 14 (Non-Disclosure)

	1.	 	Sharp and Hyundai shall not disclose or leak all information about the other party related to
the Agreement and Individual Agreements obtained to the third party without prior approval of
the other party.

	2.	 	Hyundai shall not copy or reuse blueprints, specifications and materials provided by Sharp
without gaining a prior approval and also refrain from transferring, opening, leaking or using
them to the third party.

	3.	 	Even after this provision and the Agreement are terminated, their effectiveness remains
valid.

Article 15 (Prohibiting Entrustment of Production)

	1.	 	Except in the case where a written consent was gained from Sharp in advance, Hyundai shall
not use design, technical data, blueprint and specification of Completed Goods neither for
itself nor the third party.

	2.	 	Without gaining a prior consent, Hyundai shall not entrust whole or part of producing
Completed Goods to the third party. Even in the case where Sharp has granted entrustment to
the third party, Hyundai shall not be exempted from its duties and obligations under the
Agreement and Individual Agreements.

Article 16 (Prohibiting Direct Negotiations)

Hyundai shall not carry out direct negotiations with Sharp’s vendors except in the case
instructions were given by Sharp.

Article 17 (Industrial Property)

In the case a dispute arise surrounding industrial property, circuit placement right to use and
copyright of Completed Goods with the third party, Hyundai shall resolve this under its
responsibility and bear relevant costs except in the case the dispute attributed to Sharp. And in
the case damages are caused to Sharp, such damages shall be compensated by Hyundai.

Article 18 (Public Liability)

	1.	 	Regardless of defects are found in the Completed Goods, in the case Completed Goods
themselves attributed damages to lives, bodies and properties of the third party or a dispute
arises with the third party, Hyundai shall resolve this under its responsibility and bear
relevant costs regardless of warranty period stated in the Article 10. However, this shall not
apply to the case where damages attributed to Sharp.

	2.	 	While producing the Completed Goods, Hyundai shall make sure and pay extra attention to avoid
harming the surrounding and if and when damages or disputes occur from operation, Hyundai
shall resolve this under its responsibility and bear relevant costs.

5 / 7

 

	3.	 	In the case damages are caused to Sharp under paragraph 2 situations, such damages shall be
compensated by Hyundai.

Article 19 (Transfer of Rights and Obligations)

Sharp and Hyundai shall neither transfer whole or part of their rights and obligations generated
from the Agreement or Individual Agreements to the third party nor use them as collateral unless
written consents to the other party are obtained.

Article 20 (Contract Termination)

	1.	 	Sharp may terminate whole or part of the Agreement and Individual Agreements immediately
without giving a separate notification to Hyundai in any one of the following cases:

	i.	 	Infringe any provisions of the Agreement or Individual Agreements
	 
	ii.	 	Admit that it cannot execute the contract within contract period
	 
	iii.	 	Sentenced to seizure, provisional injunction, face public sale, Subject to
bankruptcy, composition, liquidation, corporate rehabilitation or there are such
possibilities
	 
	iv.	 	Sentenced business suspension and cancellation from the regulators
	 
	v.	 	Checks overdue, insolvency
	 
	vi.	 	Business are shut down, suspended or changed or business are managed by third parties
or there are such possibilities
	 
	vii.	 	An act of breach found against Sharp
	 
	viii.	 	Harm public order and morality, and maintaining contract with Sharp is considered
inadequate
	 
	ix.	 	Financial state is instable or there are such possibilities
	 
	x.	 	Other reasons similar to one of the above

 

			
	2.	 	In the case Hyundai is under one of the above and received a notification from Sharp, Hyundai
shall settle all debts it has against Sharp immediately
	 
	3.	 	In the case damages are caused to Sharp due to contract termination under paragraph 1, Sharp
may claim compensation for damages against Hyundai
	 
	4.	 	In the case the contract is terminated pursuant to paragraph 1 and a request was made by
Sharp, Hyundai shall hand over Completed Goods (work in process included) before the delivery
to Sharp. In return, Sharp shall pay Hyundai the amount of Completed Goods agreed with
Hyundai.
	 
	5.	 	In the case the contract is terminated pursuant to paragraph 1, Sharp may produce Completed
Goods in needed volume itself or ask the third party for production and sell them. In this
case, all industrial properties held by Hyundai are deemed to have granted to Sharp. Grant of
properties shall be determined upon discussion between Sharp and Hyundai.

6 / 7

 

Article 21 (Dispute Settlement)

	1.	 	In the case disputes or differences in opinions arise under the Agreement or Individual
Agreements, or items not covered under the Agreement or individual Agreements appear, they
shall be resolved upon discussion between Sharp and Hyundai.

	2.	 	The lawsuits filed related to the Agreement or Individual Agreements shall be governed in the
Daejeon District Court.

Article 22 (Validity Period)

The contract period of the Agreement shall be one year commencing December 27, 2000. However, if
neither party expresses their position in writing two months prior to the expiration date, the
Agreement is deemed to have automatically extended for one year and the same applies afterwards.

Article 23 (Supplementary Provision)

	1.	 	The previous master agreement on production and supply of Completed Goods signed between
Sharp and Hyundai shall have lose its effects after the Agreement come into effect. However,
ancillary contracts and memorandum that were signed between Sharp and Hyundai shall remain
effective unless otherwise they are in conflict with the Agreement.

	2.	 	The Agreement shall be applicable to Individual Agreements that were signed between Sharp and
Hyundai before the Agreement comes into effect.

IN WITNESS WHEREOF, Sharp and Hyundai have subscribed their names or affixed their seals and the
Agreement has been executed in two (2) sets and each party shall retain a copy for their
records.

December 27, 2000

SHARP:

HYUNDAI:

7 / 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]