Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 191

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 191
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 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 Approval, subject to the chief executive officer’s continued employment
through each such vesting date; (ii) if the performance price is met during the second year following the Board Approval, one-third of
the award will vest immediately, one-third will vest on the second anniversary of the Board Approval and the remaining one-third will
vest on the third anniversary of the Board Approval, subject to the chief executive officer’s continued employment through each
such vesting date; and (iii) if the performance price is met during the third year following the Board Approval, two-thirds of the award
will vest immediately and the remaining one-third will vest on the third anniversary of the Board Approval, subject the chief executive
officer’s continued employment through each such vesting date. If the performance price is met during the fourth or fifth
year following the Board Approval, the entire award will immediately fully vest.

57

Our compensation policy includes minimum shareholding guidelines
(the “ Minimum Holding”) pursuant to which: (i) the chief executive officer is required to own ordinary shares with a minimum
value that equals at least three times his annual base salary, commencing May 2024; and (ii) the directors and other executive officers
are required to own ordinary shares with a minimum value that equals at least 50% of their respective annual fee or annual base salary,
as applicable, commencing July 2025. The chief executive officer and the other officers and directors have, five years from