Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 190

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 190
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) the Company’s actual financial performance
in 2024 meeting or exceeding the pre-defined 2024 financial performance metrics for the vesting of the Base PSUs by certain pre-defined
threshold targets, as determined by the Compensation Committee and Board of Directors. Subject
to meeting these three conditions, all of the Upside PSUs Type 2 are earned, and if earned, vest over the three-year time-vesting schedule
as detailed above for the Base PSUs.

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Actual net profit for 2024 was $207.9 million and cash from operations
for 2024 was $448.7 million. Since these 2024 actual financial results exceeded the pre-defined financial performance metrics for the
vesting of the Base PSUs and Upside PSUs Type 1, the chief executive officer is entitled to all of the Base and Upside PSUs Type 1, which
continue to be subject to the three-year-time-vesting schedule described above. In addition, as the three conditions for the vesting
of 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)