Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 188

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 188
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 value of $200,000 (which represented
4,920 time-based vesting RSUs granted in July 2024), which vest over a two-year period, with 50% vesting at the end of each of the two
anniversaries of the date of grant. In the event any such director’s service is terminated for any reason other than for cause,
including by way of resignation, prior to the second anniversary of the date of grant, (i) if the director has served on the board of
directors for five years or more, all unvested RSUs shall be accelerated; and (ii) if the director has served on the board of directors
for less than five years, 50% of all unvested RSUs shall be accelerated.

We have entered into exemption and indemnification agreements with
each of our officers and directors, pursuant to which, subject to the limitations set forth in the Companies Law, the Israeli Securities
Law, 1968 and our articles of association, they will be exempt from liability for breaches of the duty of care and we agreed to indemnify
them for certain costs, expenses and liabilities with respect to events specified in such agreements. In addition, our officers and directors
are currently covered by a directors’ and officers’ liability insurance policy.

Equity Incentive Plans

In 2013, the Company adopted a share incentive plan for its directors,
officers, employees and its subsidiaries’ employees (the “2013 Plan”). In accordance with our compensation policy, the
aggregate amount of outstanding equity-based compensation awarded by the Company at any time shall not exceed 10% of the fully-diluted
share capital of the Company, as calculated at the time of grant (which fully-diluted share capital will be calculated pro-forma after
taking into account the proposed grants and shares underlying all outstanding equity-based awards).

As of December 31, 2024, we had a total of approximately 1.41 million
outstanding RSUs and PSUs which were awarded to our directors and Covered Officers under the 2013 Plan, of which approximately 0.70 million
to our chief executive officer and approximately 0.015 million to the chairman of our board of directors.

At our 2024 annual general meeting, our shareholders approved,
following the approval and recommendation of the Compensation Committee and Board of Directors, the award of the following equity grants
to our chief executive officer: (a) an annual equity grant in the value of