Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 91

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 91
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 the Upside PSUs Type 2 detailed above were attained, the chief executive officer is entitled to all of the Upside PSUs Type 2, which
continue to be subject to the three-year-time-vesting schedule described above. Accordingly, in accordance with the above referenced shareholder
approval, we granted to the chief executive officer 78,366 RSUs, 117,549 Base PSUs, 58,774 Upside PSUs Type 1 and 38,790 Upside PSUs Type
2, subject to the time-vesting schedule as detailed above, for a total compensation value of approximately $11.9 million.

In addition, at our 2024 annual general meeting, our shareholders
approved, following the approval of the Compensation Committee and Board of Directors, a long-term incentive PSU award to our chief executive
officer, that provides him with the opportunity to earn 217,500 RSUs if a very ambitious share price of $80 per share is achieved within
a five year period, calculated as an average of the share price during any consecutive 20 trading days during the five year performance
period (subject to time-based vesting if the defined share price is met during the first three years following Board approval of the award
on May 27, 2024 (the “ Board Approval”), as detailed below). The value of the long-term incentive PSU award under the Equity
Calculation Model (as defined in our compensation policy) was $4.5 million as of the date of the Board Approval. If the $80 share price
(calculated as a 20 consecutive trading day average) is not achieved during the five-year period, but the Company’s share price
reaches $75 or more at the end of the five-year performance period (calculated as an average of the closing share price for the last 20
trading days of such period), the PSU award will partially vest, at a ratio between 33% of the award to 100% of the award, depending on
where the share price falls within the $75 and $80 range. The time-vesting component of this award applies if the performance goal is
achieved within the first three years from the date of the Board Approval, as follows: (i) if the performance price is met during the
first year following the Board Approval, two-thirds of the award will vest on the second anniversary of the Board Approval and the remaining
one-third will vest on the third anniversary of the Board