SEC Contract Filing

Filing Date: 2016-05-27

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d199162dex101.htm
<DESCRIPTION>EX-10.1
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<TITLE>EX-10.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>AGREEMENT </U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This
Agreement (this &#147;<U>Agreement</U>&#148;) is made and entered into as of May 26, 2016, by and among MagnaChip Semiconductor Corporation (the &#147;<U>Company</U>&#148;), Engaged Capital Master Feeder II, LP (&#147;<U>Engaged Capital Master
II</U>&#148;), Engaged Capital Master Feeder I, LP (&#147;<U>Engaged Capital Master I</U>&#148;), Engaged Capital I, LP (&#147;<U>Engaged Capital I</U>&#148;), Engaged Capital I Offshore, Ltd. (&#147;<U>Engaged Capital Offshore</U>&#148;), Engaged
Capital II, LP (&#147;<U>Engaged Capital II</U>&#148;), Engaged Capital II Offshore Ltd. (&#147;<U>Engaged Capital Offshore II</U>&#148;), Engaged Capital, LLC (&#147;<U>Engaged Capital</U>&#148;), Engaged Capital Holdings, LLC (&#147;<U>Engaged
Holdings</U>&#148;) and Glenn W. Welling (&#147;<U>Welling</U>&#148;, and together with Engaged Capital Master II, Engaged Capital Master I, Engaged Capital I, Engaged Capital Offshore, Engaged Capital II, Engaged Capital Offshore II, Engaged
Capital and Engaged Holdings, the &#147;<U>Engaged Stockholders</U>&#148;) (each of the Company and the Engaged Stockholders, a &#147;<U>Party</U>&#148; to this Agreement, and collectively, the &#147;<U>Parties</U>&#148;). </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">RECITALS </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, on May 12,
2016, Engaged Capital Master II submitted to the Company a notice (the &#147;<U>Notice</U>&#148;) of stockholder nominations of individuals for election as members of the Company&#146;s board of directors (the &#147;<U>Board</U>&#148;) at the 2016
annual meeting of stockholders of the Company, including any adjournment or postponement thereof (the &#147;<U>2016 Annual Meeting</U>&#148;); </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Company and the Engaged Stockholders have engaged in various discussions and communications concerning the Company and its
governance structure; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Engaged Stockholders are deemed to beneficially own shares of Common Stock of the Company (the
&#147;<U>Common Stock</U>&#148;) totaling, in the aggregate, 3,852,974 shares on the date hereof; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Company and the
Engaged Stockholders have determined to come to an agreement with respect to the election of members of the Board at the 2016 Annual Meeting and certain other matters, as provided in this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound hereby, agree as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">1. <U>Board Matters; 2016 Annual Meeting</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Commencing on the date hereof until the 2016 Annual Meeting and subject to the execution of a confidentiality agreement, substantially in
the form attached hereto as <U>Exhibit A</U> (the &#147;<U>Confidentiality Agreement</U>&#148;), each of Melvin L. Keating and Camillo Martino (each an &#147;<U>Observer</U>&#148; and together, the &#147;<U>Observers</U>&#148;) shall receive (i)
copies of all documents distributed to the Board and the Strategic Review Committee of the Board (the &#147;<U>Strategic Review Committee</U>&#148;), including notice of all meetings of each </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>

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of the Board and Strategic Review Committee, all written consents executed by the Board and/or Strategic Review Committee and all materials prepared for consideration at any meeting of the Board
or Strategic Review Committee; (ii) copies of all material documents and materials previously distributed to the Strategic Review Committee; and (iii) copies of the minutes related to each previous and forthcoming meeting of the Strategic Review
Committee.&nbsp;Each Observer shall be permitted to attend and reasonably participate, but not vote, at all meetings of the Board and Strategic Review Committee (whether such meetings are held in person, telephonically or otherwise). Promptly after
the date hereof and subject to the execution by the Observers of the Confidentiality Agreement, the Observers shall be granted reasonable access to the financial advisor of the Strategic Review Committee for the purpose of providing the Observers a
briefing by such financial advisor with respect to the status and history of the Company&#146;s strategic review