Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e)
As previously announced, on February 28, 2020, Jonathan Kim, Chief Financial Officer, Executive Vice President and Chief Accounting Officer of MagnaChip Semiconductor Corporation (the “Company”), notified the Company of his resignation from all positions with the Company and its subsidiaries, including MagnaChip Semiconductor, Ltd. (“MSK”), to be effective March 27, 2020.
In connection with Mr. Kim’s resignation, the Company entered into a separation agreement with Mr. Kim (the “Separation Agreement”), dated March 26, 2020. Pursuant to the Separation Agreement, Mr. Kim and the Company agreed that Mr. Kim’s resignation shall not be deemed with “Good Reason” and shall not be deemed a “Qualifying Termination” under that certain letter agreement regarding severance terms, dated November 3, 2015, among Mr. Kim and the Company, a copy of which has been previously filed as an exhibit to the Company’s Annual Report on Form10-K for the fiscal year ended December 31, 2019. The Separation Agreement provides for (i) a $50,000 payment to Mr. Kim to be paid on the first regular payroll date that is at least fourteen (14) days after the effective date of a Release of Claims (defined below), and (ii) an extension of the exercise date of Mr. Kim’s vested options to purchase shares of the Company’s common stock to March 27, 2022 (collectively, the “Separation Benefits”), provided that the Release of Claims has not been revoked, Mr. Kim has complied with all restrictive covenants contained in the Separation Agreement and Mr. Kim has complied with all other terms of the Separation Agreement and the Release of Claims.
In connection with the Separation Agreement, Mr. Kim also entered into a release with MSK whereby Mr. Kim released all claims he may have against MSK, the Company or their respective affiliates, subsidiaries, representatives and other related parties in exchange for the Separation Benefits and the other applicable severance benefits set forth in the Separation Agreement (the “Release of Claims”). Mr. Kim also entered into a consulting agreement whereby Mr. Kim has agreed to provide consulting services relating to his prior work with MSK for a period of 60 days from the date of his resignation, and will be compensated on an hourly basis for his consulting services.
The foregoing description of the Separation Agreement is qualified in its entirety by reference to the full text of the Separation Agreement, which is filed as Exhibit 10.1 to this Current Report and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
The following exhibit is furnished as part of this report:
