Document:

exv10w2

 

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT

     THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (“Amendment”), dated as of March
27, 2007 (the “Amendment Date”), is among Amkor Technology, Inc. and its Subsidiaries party
hereto, the Lenders party to the Loan and Security Agreement referred to below, and Bank of
America, N.A., as administrative agent for the Lenders.

RECITALS:

     A. The Borrowers, the Lenders, and the Agent have entered into that certain Loan and Security
Agreement, dated as of November 28, 2005 (as amended, waived or otherwise modified to date, the
“Loan and Security Agreement”).

     B. The Borrowers have requested that the Lenders amend the Credit Agreement in certain
respects as specifically provided hereinbelow.

     C. Subject to satisfaction of the conditions set forth herein, the Requisite Lenders are
willing to amend the Credit Agreement as specifically provided hereinbelow.

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

ARTICLE 1

Definitions

     Section 1.1 Definitions. Unless otherwise defined in this Amendment, capitalized
terms used in this Amendment shall have the same meanings in this Amendment as in the Loan and
Security Agreement, as amended hereby.

ARTICLE 2

Amendment to Loan and Security Agreement

     Section 2.1 Amendment to Section 1.1. Effective as of the Amendment Date, the
definition of “Permitted Bank Debt” in Section 1.1 of the Loan and Security Agreement is
hereby amended and restated to read as follows:

     Permitted Bank Debt – Indebtedness incurred by Amkor or any Restricted
Subsidiary other than a Foreign Subsidiary pursuant to the Credit Facilities, any
Receivables Program, any indenture, or one or more other term loan and/or revolving
credit or commercial paper facilities (including any letter of credit subfacilities)
entered into with commercial banks and/or institutional lenders, and

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT – Page 1 

 

any replacement, extension, renewal, refinancing or refunding thereof, but excluding
the Obligations.

ARTICLE 3

Conditions and Postclosing Agreements

     Section 3.1 Conditions Precedent. The effectiveness of this Amendment is subject to
the satisfaction of the following conditions precedent:

     (a) no Default or Event of Default shall be in existence as of the Amendment Date after
giving effect to this Amendment;

     (b) the proceeds of the loan to be made to Amkor Technology Korea, Inc. (“ATK”)
by Woori Bank (“WB”) in the principal amount of $300,000,000 (to be guaranteed by
Amkor) shall have been delivered to the escrow agent in accordance with the Escrow Agreement
dated as of March ___, 2007 among Amkor, ATK and WB, as Lender-Escrow Agent, and shall be
applied contemporaneously with the effectiveness of this Amendment, together with such other
funds as may be required therefor directly from Amkor, to pay in full all Indebtedness
outstanding under the Second Lien Credit Agreement and cause all Liens thereunder to be
released or terminated;

     (c) the Agent shall have received a written opinion of Paul, Hastings, Janofsky &
Walker LLP in form and substance satisfactory to the Agent; and

     (d) the Agent shall have received (i) a fully executed copy of this Amendment, (ii) a
payoff and release agreement, executed by the holder of the Indebtedness and Liens under the
Second Lien Credit Agreement that, upon receipt of the funds referenced in Section
3.1(b), such Indebtedness and Liens, and the Intercreditor Agreement, will terminate,
and (iii) and each other agreement, document, certificate or instrument reasonably requested
by the Agent in connection with this Amendment, in each case in form and substance
satisfactory to the Agent.

ARTICLE 4

Ratifications, Representations, and Warranties

     Section 4.1 Ratifications. The terms and provisions set forth in this Amendment shall
modify and supersede all inconsistent terms and provisions set forth in the Loan and Security
Agreement and the other Loan Documents and, except as expressly modified and superseded by this
Amendment, the terms and provisions of the Loan and Security Agreement and the other Loan Documents
are ratified and confirmed and shall continue in full force and effect. The Borrowers, the Agent,
and the Lenders agree that the Loan and Security Agreement and the other Loan Documents, as amended
hereby, shall continue to be legal, valid, binding, and enforceable in accordance with their
respective terms.

     Section 4.2 Borrowers’ Representations and Warranties. The Borrowers hereby represent
and warrant to the Agent and the Lenders that (a) the execution, delivery, and

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT – Page 2 

 

performance of this Amendment and any and all other Loan Documents executed and/or delivered
in connection herewith have been authorized by all requisite action on the part of the Borrowers
and will not violate the certificate of incorporation or bylaws of any Borrower, (b) the
representations and warranties of the Borrowers contained in the Loan and Security Agreement, as
amended hereby, and any other Loan Document are true and correct on and as of the Amendment Date as
though made on and as of the Amendment Date (except to the extent that such representations and
warranties were expressly made only in reference to a specific date), and (c) after giving effect
to this Amendment, no Default or Event of Default has occurred and is continuing.

ARTICLE 5

Miscellaneous

     Section 5.1 Survival of Representations and Warranties. All representations and
warranties made in this Amendment or any other Loan Document including any Loan Document furnished
in connection with this Amendment shall survive the execution and delivery of this Amendment and
the other Loan Documents, and no investigation by the Agent or any Lender shall affect the
representations and warranties or the right of the Agent or any Lender to rely upon them.

     Section 5.2 Reference to Loan and Security Agreement and Other Loan Documents. Each
of the Loan Documents, including the Loan and Security Agreement and any and all other agreements,
documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or
pursuant to the terms of the Loan and Security Agreement and the other Loan Documents as amended
hereby, are hereby amended so that any reference in such Loan Documents to the Loan and Security
Agreement or any other Loan Document shall mean a reference to the Loan and Security Agreement and
the other Loan Documents as amended hereby.

     Section 5.3 Severability. Any provision in this Amendment that is held to be
inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be
inoperative, unenforceable, or invalid without affecting the remaining provisions in that
jurisdiction or the operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of this Amendment are declared to be severable.

     Section 5.4 Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK, PROVIDED THAT IN THE EVENT ANY COURT DETERMINES THAT NEW YORK LAW DOES NOT
GOVERN THE LAWS OF THE STATE OF TEXAS SHALL GOVERN, IN ANY SUCH CASE WITHOUT GIVING EFFECT TO ANY
CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).

     Section 5.5 Successors and Assigns. This Amendment is binding upon and shall inure to
the benefit of the Borrowers, the Agent, and the Lenders and their respective successors and
assigns, except the Borrowers may not assign or transfer any of their respective rights or

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT – Page 3 

 

obligations hereunder without the prior written consent of the Lenders and any assignment by
the Lenders shall be made only in accordance with the terms of the Loan and Security Agreement.

     Section 5.6 Counterparts. This Amendment may be executed in any number of
counterparts, all of which taken together shall constitute one agreement, and any of the parties
hereto may execute this Amendment by signing any such counterpart and a telecopy of any such
executed signature page shall be valid as an original. This Amendment shall be effective when it
has been executed by the Borrowers, the Agent, and the Requisite Lenders.

     Section 5.7 Effect of Amendment. No consent or waiver, express or implied, by the
Agent or any Lender to or for any breach of or deviation from any covenant, condition, or duty by
the Borrowers shall be deemed a consent or waiver to or of any other breach of the same or any
other covenant, condition, or duty. The Borrowers hereby (a) agree that this Amendment shall not
limit or diminish the obligations of the Borrowers under the Loan Documents delivered in connection
with the Credit Agreement, executed or joined in by the Borrowers and delivered to the Agent, (b)
reaffirms the Borrowers’ obligations under each of such Loan Documents, and (c) agrees that each of
such Loan Documents to which the Borrowers are a party remains in full force and effect and is
hereby ratified and confirmed.

     Section 5.8 Further Assurances. The Borrowers shall execute and deliver, or cause to
be executed and delivered, to the Agent such documents and agreements, and shall take or cause to
be taken such actions as the Agent may, from time to time, reasonably request to carry out the
terms of this Amendment and the other Loan Documents.

     Section 5.9 Headings. The headings, captions, and arrangements used in this Amendment
are for convenience only and shall not affect the interpretation of this Amendment.

     Section 5.10 Entire Agreement. THIS AMENDMENT AND ALL OTHER INSTRUMENTS, DOCUMENTS,
AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH THIS AMENDMENT EMBODY THE FINAL, ENTIRE
AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS,
REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THIS AMENDMENT, AND MAY
NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS
OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO.

     Section 5.11 Amendment as a Loan Document. This Amendment constitutes a Loan Document
and any failure of the Borrowers to comply with the terms and conditions of this Amendment shall
result in a Default under the Credit Agreement.

[Remainder of page intentionally left blank.]

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT – Page 4 

 

     IN WITNESS WHEREOF, the parties have entered into this Amendment on the date first above
written.

	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 
	 	 	AMKOR TECHNOLOGY, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ KENNETH T. JOYCE	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Kenneth T. Joyce
	 	 	Title: Chief Financial Officer

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT – Page 5 

 

	 	 	 	 	 	 	 
	 	 	AGENT:
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ JOY L. BARTHOLOMEW	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Joy L. Bartholomew
	 	 	Title: Senior Vice President

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT – Page 6 

 

	 	 	 	 	 	 	 
	 	 	LENDERS:
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ JOY L. BARTHOLOMEW	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Joy L. Bartholomew
	 	 	Title: Senior Vice President
	 
	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN)
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ ROBIN L. VANMETER	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Robin L. VanMeter
	 	 	Title: Vice President
	 
	 	 	 	 	 	 
	 	 	TEXTRON FINANCIAL CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ ROBERT L. DYSART	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Robert L. Dysart
	 	 	Title: Senior Account Executive

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT – Page 7exv10w3

 

[Translation]

Woori Bank must explain the material contents hereof to the Borrower, and
deliver the General Terms and Conditions for Bank Credit Transactions and a
copy of this Credit Facility Agreement to the Borrower.

Credit Facility Agreement

(For Corporate Borrower)

	 	 	 
	To: Woori Bank

	 	Date: March 30, 2007

	 	 	 	 	 	 	 
	 	 	Borrower:	 	Amkor Technology Korea, Inc. ((seal))
	 	 	 	 	Representative Director Kyu-Hyun Kim
	 

	 	 	 	/s/ KYU-HYUN KIM	 	 
	 

	 	 	 	 	 	 
	 	 	Address:	 	280-8, Sungsoo-dong 2-ga, Sungdong-gu
	 	 	 	 	Seoul

      

      

Seal Authenticity

Verification

 

(seal affixed)

The Borrower hereby acknowledges and agrees that, in entering into a transaction with Woori
Bank (the “Bank”) as contemplated by the terms of this credit facility agreement, the “Bank Credit
Transaction Basic Terms and Conditions (For Corporate Borrower)” shall apply, and hereby also agree
to the following terms:

Article 1. Transaction Terms

The terms of the transaction are as follows:

										
	Classification of
Credit Facility
(Credit Type)	 	 	Foreign Currency Loan	 	Transaction Category	 	o credit line § separate

credit
	 
	 	 	 	 	 	 	 	 	 
	Amount of Credit
Facility (Limit)

	 	 	USD 300,000,000	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Drawdown Date

	 	 	April 5, 2007
	 	 	 	Maturity Date
	 	April 5, 2014
	 
	 	 	 	 	 	 	 	 	 
	Interest Rate	 	 	[Intentionally deleted]	 	 	 	(base rate applicable to USD credit facility + 0.5%)
	 
	 	 	 	 	 	 	 	 	 
	Default Interest
Rate (Article 3,
Section 5 of the
Bank Credit
Transaction Basic
Terms and
Conditions is
applicable)	 	 	Less than 3 months: 17% p.a.
 3 months or more: 19% p.a.
	 
	 	 	 	 	 	 	 	 	 
	Calculation of	 	 	Calculated on a daily basis based on 365 days a year (provided

Woori Bank

 

 

										
	Interest	 	 	that, in foreign exchange transactions, the international practice, commercial business practice, etc. shall be followed)
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	[intentionally
deleted]
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	[intentionally
deleted]
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	Prepayment Fees	 	 	[intentionally deleted]	          [intentionally deleted]
	 	 	 	 	 	 	 	 	 	 
	 	 	 	Loan denominated in a foreign currency:
0.5%, if the remaining period is shorter than 1 year; and
1.0%, if the remaining period is 1 year or longer.
	 	 	 	 	 	 	 	 	 	 
	Drawdown	 	 	Drawdown of the entire amount on the drawdown date.
	 	 	 	 	 	 	 	 	 	 
	Repayment Method	 	 	There will be a grace period of 0 years 0 months from the drawdown date, and the repayment shall be made
in installments of every three (3) months, the first installment of which shall be repaid on July 5,
2007.
	 	 	 	 	 	 	 	 	 	 
	Interest Payment
Dates and Method	 	 	The first interest payment shall be made on or prior to the date falling three (3) months from the
drawdown date, and the interest thereafter shall be made within three (3) months from the date falling
one (1) day after the end of the previous interest period.
	 	 	 	 	 	 	 	 	 	 
	[intentionally
deleted]
	 	 	 	 	 	 	 	 	 

Article 2. Default Interest

	 	(1)	 	As to any due but unpaid interest, installment payment of principal, and installment
payment of principal and interest, a default interest thereof shall be paid immediately.
	 
	 	(2)	 	If there is a failure to satisfy the debt on the maturity date or the loan becomes
accelerated pursuant to Article 7 of General Terms and Conditions for Bank Credit
Transactions, a default interest shall be paid immediately as to the outstanding credit
facility amount.
	 
	 	(3)	 	[intentionally deleted]

Article 3. Determination of Total Amount of Loan and Notification of Installment Repayment Schedule

	 	(1)	 	[intentionally deleted]
	 
	 	(2)	 	In case of any credit facility to be repaid in installments except for either loans
based on regular installment savings (jeokkeum in Korean) or grants, the Bank shall
prepare and notify the obligors of a schedule for the repayment in installments of the
fixed total debt amount.

Woori Bank

 

 

Article 4. [intentionally deleted]

Article 5. [intentionally deleted]

Article 6. [intentionally deleted]

Article 7. [intentionally deleted]

Article 8. [intentionally deleted]

Article 9. Prepayment Fees

	 	(1)	 	If the Borrower prepays the loan provided by the Bank prior to the agreed maturity
date (including, if the maturity is extended, the maturity date as extended; hereinbelow
the same), the Borrower shall pay the Bank the prepayment fees as set forth in Section
9(2) below.
	 
	 	(2)	 	The prepayment fees shall be an amount equal to the Prepaid Amount multiplied by the
applicable prepayment fee rate as set forth in Article 1, and the Prepaid Amount, etc.
shall be calculated as follows:

	 	�.	 	“Prepaid Amount” shall mean an amount of the loan prepaid prior to the
agreed due date or, in case of a loan to be repaid in installments, an amount of the
loan prepaid prior to the due date of any installment repayment.
	 
	 	‚.	 	“Remaining Period” shall mean a period from the date of prepayment to the
agreed due date or, in case of a loan to be repaid in installments, the Remaining
Period shall be calculated with respect to each scheduled installment repayment, and,
in case of prepayment of a loan in part, the prepayment shall be applied in the order
of the installment payments of which the due date comes first.
	 
	 	ƒ.	 	[intentionally deleted]
	 
	 	„.	 	[intentionally deleted]

	 	(3)	 	In any of the following cases, the prepayment fees shall be exempted:

	 	�.	 	If the Remaining Period is less than 1 month;
	 
	 	‚.	 	If the Bank collects the loan prior to the maturity date for the reason of
acceleration or otherwise as set forth in the “General Terms and Conditions for Bank
Credit Transactions”;
	 
	 	ƒ.	 	If the Borrower is a company subject to workout or restructuring
proceedings and the prepayment is made upon agreement with the Bank;

Woori Bank

 

 

	 	„.	 	If an outside source loan, however, excluding a credit line loan (including
a passbook loan), consumer financing, and a loan subject to the limit of a maximum
amount;
	 
	 	....	 	If a floating P-Rate loan is prepaid within 1 month from the interest rate
change date due to the increase of P-Rate; and
	 
	 	†.	 	If the amount of the credit facility does not exceed the amount of deposits
in a savings account or a regular installment savings account with the Bank, a
beneficiary certificate of the Bank or financial receivables that could be utilized
as security.

Article 10. Stamp Tax

	 	(1)	 	The Borrower shall be responsible for all stamp taxes relating to this Agreement.
	 
	 	(2)	 	If the Bank pays on behalf of the Borrower any stamp tax payable by the Borrower
under Section 10(1) above, the Borrower shall promptly repay the Bank such stamp tax
amount pursuant to Article 4 of the Bank Credit Transaction Basic Terms and Conditions.

Article 11. [intentionally deleted]

Article 12. Currency and Exchange Rate

The principal and interest of a foreign-currency denominated loan may be repaid in the foreign
currency in which the loan was extended or Korea Won, and in case of repayment in Korean Won, an
applicable exchange rate shall be the telegraphic transfer selling rate to the customers as of the
date of repayment.

Article 13. Security; Insurance

Unless otherwise expressly communicated by the Bank, the Borrower shall grant to the Bank the
facilities constructed or installed with the funds from the credit facility extended hereby,
together with the land and buildings at which they are established and other facilities inside of
them, as security in favor of the Bank, and if requested by the Bank, the Borrower shall subscribe
to insurance in such types and amounts as agreed to by the Bank and shall grant a pledge over the
rights to claim the insurance proceeds in favor of the Bank.

Article 14. [intentionally deleted]

Article 15. [intentionally deleted]

Article 16. Submission of Materials, etc.

Woori Bank

 

 

	 	(1)	 	The Borrower shall submit to the Bank the following materials which are requested to
be periodically submitted pursuant to Sections 17 and 19 of General Terms and Conditions
for Bank Credit Transactions, and, at the request of the Bank, submit any other materials
necessary for the post-drawdown supervision of the credit facility:

	 	1.	 	Every quarter: a value added tax report, a total balance schedule, a table
of status of liabilities, a list of buyers, and a table of estimated sales per goods,
etc.;
	 
	 	2.	 	Every half year: a semi-annual financial statement, a value added tax
report, a total balance schedule, a table of status of liabilities, a list of buyers,
and a table of estimated sales per goods, etc.;
	 
	 	3.	 	Every year: an audit report prepared by a CPA (final financial statements),
consolidated financial statements, corporate registry extracts, business registration
certificate, a shareholder registry, articles of incorporation, a summary sheet of
earned income taxes withheld, business plan, a projected financial statements (for 3
years), information on major business partners, copies of various permits, approvals
and documents relating to certified technology (KS, ISO, patent, etc.), a
confirmation letter on labor disputes, other operating manuals for goods, reference
materials regarding the Borrower’s industry, etc.; and
	 
	 	4.	 	At any time: a total balance schedule, a table of status of liabilities,
document confirming use of proceeds, etc.

	 	(2)	 	The Borrower shall, at the request of the Bank, submit to the Bank the following
materials which the Bank, at the time of evaluating the credit standing of the Borrower,
requests for the purpose of understanding the Borrower’s status of foreign exchange risks
and its management thereof:

	 	1.	 	Status of management system on FX risks and rules on management of FX
risks;
	 
	 	2.	 	Status of procurement, and use/operation, of foreign currency funds; and

	 
	 	3.	 	Status of transactions of foreign-currency denominated derivatives.

Article 17. Other Special Agreement

							
	If there is any conflict
or discrepancy between the
Korean version of this
Agreement and the English
version of this Agreement,
the Korean version of this
Agreement shall prevail.

	 	 	Borrower
	 	 	Amkor Technology Korea, Inc.,

Representative Director
Kyu-Hyun Kim

/s/ KYU-HYUN KIM ((seal))

280-8, Sungsoo-dong 2-ga,
Sungdong-gu, Seoul

							
	The Borrower has
received the Bank Credit
Transaction Basic Terms
and Conditions and a copy
of this Agreement, and
have been sufficient
explained of, and
understands, the material
contents thereof.

	 	 	Borrower
	 	 	Amkor Technology Korea, Inc.,

Representative Director

/s/ KYU-HYUN KIM ((seal))

280-8, Sungsoo-dong 2-ga,
Sungdong-gu, Seoul

Woori Bank

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