Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 90

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 90
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 by the Compensation Committee and Board of
Directors, weighted equally. The actual number of Base PSUs earned (subject to time-based vesting, as described below) was based on the
Company’s performance relative to the pre-defined 2024 performance measures, and if the 2024 performance measures are met, the Base
PSUs that are earned vest over a three year period, such that one third of the earned Base PSUs vest at the end of each year from the
date of grant. The vesting of the Upside PSUs Type 1 was conditioned upon the Company’s actual financial performance in 2024 exceeding
the pre-defined 2024 financial performance metrics for the vesting of the Base RSUs. Subject to meeting such condition, the Upside PSUs
Type 1 earned shall be in proportion to the degree by which the pre-defined 2024 financial performance targets are exceeded in relation
to a certain target percentage that was pre-defined by the Compensation Committee and Board of Directors, and such portion of Upside PSUs
Type 1 earned, vests over the three-year time-vesting schedule as detailed above for the Base PSUs. The vesting of the Upside PSUs Type
2 was conditioned upon the attainment of three pre-defined performance measures, as follows: (i) meeting two share price performance measures
within one year of the Board approval of the grant of the Upside PSUs Type 2; and (ii) 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.

56

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