Exhibit
10.1

      
          

        
          
            
              
                
                  	
                          



                        	
                          Kulicke
      & Soffa Industries Inc.

                          1005
      Virginia Drive

                          Fort
      Washington, PA  19034 USA

                        
	 
      	
                          215-784-6000
      phone

                        
	 
      	
                          215-659-7588
      fax

                        
	 
      	
                          www.kns.com

                        


                

              

            

          

        

      

       

    

    October
18, 2010

    


    Mr. Jason
Livingston

    [Address
Omitted]

    


    Dear
Jason:

    


    This letter confirms our mutual
understanding that your employment with Kulicke and Soffa Industries, Inc. (the
“Company”) will cease on October 31, 2010.  On behalf of the Company,
I would like to thank you for your contributions to the Company during the last
two years.

    


    In connection with your separation from
the Company and as contemplated by Section 4.4(a) of your Employment
Agreement dated October 3, 2008 (the “Employment Agreement”), as severance, the Company will
continue to pay to you your current base salary through October 3, 2011,
provided that you execute a release of all employment and related claims against
the Company, its officers, directors and stockholders within 21
days.  If you do not revoke the release within seven days of its
execution, the release will become effective and the Company will commence
severance payments.  As provided in Section 4.4(a) of your Employment
Agreement, if you do not sign the release or if you timely revoke it, you will
not receive any severance payments from the Company.  The form of the
release is attached as Exhibit A to this letter.

    


    You acknowledge that following your
separation from employment, you continue to be bound by the confidentiality,
noncompetition, non-solicitation and other provisions in Section 5 of the
Employment Agreement.

    


    The Company reserves all of its rights
and remedies under the Employment Agreement and under applicable law, and
nothing in this letter shall be construed as a waiver of those rights or
remedies.

    


    Please acknowledge you understand and
agree with the arrangement described above by signing below and returning a copy
of this letter and the executed release.

    


    
      
        
          	 
      	
                  Sincerely,

                	 
	 
      	 
      	 
	 
      	
                  /s/
      Bruno Guilmart

                	 
	 
      	
                  Bruno
      Guilmart

                	 
	 
      	
                  President
      and

                	 
	 
      	
                  Chief
      Executive Officer

                	 


        

      

    

     

    ACCEPTED
AND AGREED

     

    
      
        
          	
                  /s/
      Jason Livingston

                	 
	
                  Jason
      Livingston

                	 


        

      

    

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    RELEASE

     

               1.            
   Release.  In further
consideration of the compensation and benefits provided pursuant to the
Employment Agreement between Kulicke and Soffa Industries, Inc. (the “Company”)
and Jason Livingston (the “Executive”) and intending to be legally bound,
Executive hereby irrevocably and unconditionally releases and forever discharges
the Company and any and all of its parents, subsidiaries, affiliates, related
entities, joint venturers and each of its and their predecessors, successors,
insurers, owners, stockholders, directors, officers, employees, attorneys, and
other agents (“Released Parties”) of and from any and all rights, obligations,
promises, agreements, debts, losses, controversies, claims, causes of action,
liabilities, damages, and expenses, including without limitation attorneys’ fees
and costs, of any nature whatsoever, whether known or unknown, asserted or
unasserted, which he ever had, now has, or hereafter may have against the
Released Parties, or any of them, that arose at any time before or upon his
signing this Release, including without limitation the right to take discovery
with respect to any matter, transaction, or occurrence existing or happening at
any time before or upon his signing this Release and any and all claims arising
under any oral or written Company program, policy or practice, contract,
agreement or understanding (except and only as set forth in Section 4.4(a) of
the Employment Agreement), any common-law principle of any jurisdiction, any
federal, state or local statute or ordinance, with all amendments thereto,
including without limitation the National Labor Relations Act of 1947, the Civil
Rights Acts of 1866, 1871, 1964, and 1991, the Equal Pay Act, the Age
Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the
Bankruptcy Code, the Fair Credit Reporting Act, the Worker Adjustment and
Retraining Notification Act, the Employee Retirement Income Security Act of
1974, the Americans With Disabilities Act of 1990, the Family and Medical Leave
Act of 1993, the Health Insurance Portability and Accountability Act of 1996,
the Sarbanes-Oxley Act of 2002, the California Fair Employment and Housing Act,
and any other employee-protective law of any jurisdiction that may
apply.  (All claims encompassed by this Paragraph are hereinafter
referred to collectively as the “Claims”).

    


    2.           Covenant Not To
Sue.  Executive hereby represents and warrants that he has
brought no complaint, claim, charge, action or proceeding against any of the
Released Parties in any judicial, administrative or any other
forum.  Executive covenants to the fullest extent permitted by law
that he will not lodge any formal or informal complaint or pursue any Claim in
court.

    


    3.           Knowing and Voluntary
Agreement.  Executive acknowledges that he has carefully read
and fully understands all of the provisions and effects of this Release; that
the Company has advised him in writing, by this Paragraph, to consult with an
attorney, and that he has consulted with an attorney of his choice, before
signing this Release; that the Company has provided him with no less than
twenty-one days to consider this Release before signing it; that the Company has
provided him with no less than seven days within which to revoke this Release
after signing it; that Executive is voluntarily entering into this Release free
of coercion and duress; and that neither the Company nor any of its agents or
attorneys has made any representations or promises concerning the terms or
effects of this Release.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    4.           Severability.  If
any provision of this Release is determined to be invalid or unenforceable, the
remainder of this Release other than such provision shall not be affected and
will remain in full force and effect; provided, however, that if any release or
waiver set forth in Section 1 of this Release is declared to be invalid, illegal
or unenforceable in whole or in material respect, the party on whose benefit the
release or waiver was provided shall have the right to elect to consider this
Release to be nullified and, in such case, any payments or benefits that have
been or were to be afforded under this Release shall be returned to the Company
with interest unless prohibited by law.

    


    5.           Good Faith Settlement / Continuing
Rights and Obligations.  This Release constitutes the good
faith settlement of all claims or potential claims Executive may have against
the Released Parties, or any of them, and is not and shall not in any way be
construed as an admission of any wrongful or discriminatory act against
Executive or that the termination of Executive’s employment was in any way
wrongful or unlawful.  This Release shall not in any way impact or
diminish the rights and entitlements that the Company has under the Employment
Agreement or the continuing duties and obligations that Executive owes the
Company and others under the Employment Agreement, including Section 5
thereof.  This Release shall not in any way impact or diminish the
rights or entitlements that the parties have under the Asset Purchase Agreement
by and between Orthodyne Electronics Corporation (“OE”) and the Company, dated
as of July 30, 2008, the Earnout Agreement by and between OE and the Company,
dated as of July 30, 2008, or any other agreement between OE and the
Company.

    


    6.           Non-Disparagement.  Executive agrees not to make any
derogatory, unfavorable, negative or disparaging statements concerning the
Company and its affiliates, officers, directors, managers, employees or agents,
or its or their business affairs or performance.

    


    7.           Effective
Date.  This Release shall become effective and enforceable,
unless sooner revoked pursuant to Paragraph 9, on the eighth day after Executive
signs this Release.  Executive shall deliver this Release bearing his
original signature to the Company at the following address:

    


    Kulicke and Soffa Industries,
Inc.

    1005 Virginia Drive

    Fort Washington,
PA   19034

    Attn:  General
Counsel

    


    8.           Revocation.  Executive
may revoke this Release if, before 5:00 p.m. on the seventh day after Executive
signs the Release, he delivers to the Company, at the address specified in
Paragraph 8, written notice of his intent to revoke this Release.

    


    IN WITNESS WHEREOF, intending to be
legally bound, the undersigned has executed this Release this 18th day of
October, 2010.

     

    
      
        
          	 
      	
                  /s/
      Jason Livingston

                	
                   

                
	 
      	
                  Jason
      Livingston