Document:

exv10wjj

 

EXHIBIT
10.JJ

Skyworks Solutions, Inc.

Performance Share Agreement

Granted Under 2005 Long-Term Incentive Plan

     1. Grant of Award.

     This Agreement evidences the grant by Skyworks Solutions, Inc., a Delaware corporation
(“Skyworks” or the “Company”) on [DATE] (the “Grant Date”) to [NAME] (the “Participant”)
of up to [# of SHARES] performance shares of the Company. Each performance share represents the
right to receive one share of the common stock, $0.25 par value per share, of the Company (“Common
Stock”) upon, and to the extent of, the achievement of the performance targets, as provided in this
Agreement. The shares of Common Stock that are issuable upon, and to the extent, of the
achievement of the performance targets are referred to in this Agreement as “Shares.” No Shares
shall be issued by the Company and delivered to the Participant unless, and until, all conditions
set forth herein for such issuance and delivery are met, including but not limited to the
achievement of an applicable performance target.

     2. Vesting; Forfeiture.

          (a) The Participant’s right to receive the Shares shall vest if, and to the extent, the
performance targets described in Exhibit A to this award (the “Targets”) are satisfied before the
date set forth in Exhibit A (the “Termination Date”). If none of the Targets are met before the
Termination Date, the Company shall have no obligation to issue any Shares and this award shall be
forfeited.

          (b) In the event that the Participant’s employment with the Company terminates for any reason
before the Termination Date, the Company shall have no obligation to issue any Shares and this
award shall be forfeited.

     3. Distribution of Shares.

          (a) The Company will distribute to the Participant (or to the Participant’s estate, in the
event that his or her death occurs after the Participant’s right to receive the Shares vests but
before distribution of the corresponding Shares), as soon as administratively practicable after the
Participant’s right to receive the Shares vests, the Shares of Common Stock represented by the
performance shares. In no event shall the issuance and distribution of the Shares be made later
than March 15 of the calendar year following the calendar year in which the Participant’s right to
receive the Shares vests.

          (b) The Company shall not be obligated to issue and deliver the Shares to the Participant upon
the vesting of the Participant’s right to receive the Shares unless the issuance and delivery of
the Shares shall comply with all relevant provisions of law and other legal requirements including,
without limitation, any applicable federal or state securities laws and the requirements of any
stock exchange upon which shares of Common Stock may then be listed.

     4. Restrictions on Transfer.

     The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of,
by operation of law or otherwise, any performance shares, or any
interest therein, except by will or the laws of descent and distribution. The provisions of this Section 4 shall not
apply to any of the Shares.

 

 

     5. Provisions of the Plan; Dividend and Other Shareholder Rights.

     This Agreement is subject to the provisions of the Plan, a copy of which is furnished to the
Participant with this Agreement. Except as set forth in the Plan, neither the Participant nor any
person claiming under or through the Participant shall be, or have any rights or privileges of, a
stockholder of the Company in respect of the Shares issuable pursuant to the performance shares
granted hereunder until the Shares have been issued by the Company and delivered to the
Participant.

     6. Reorganization Event; Change in Control Event.

     In the event of a Reorganization Event (as defined in the Plan) that is not also a Change of
Control (as defined below), the terms of the Plan shall govern the treatment of this award. In the
event of a Change of Control (as defined below), this award shall be deemed earned, and Shares
vested, as to the greater of (a) the “target” level of Shares described in Exhibit A to this award
or (b) the number of Shares that would have been earned pursuant to the terms of this award as of
the day immediately prior to the date of such Change of Control, and such shares shall be issued by
the Company immediately prior to such Change of Control transaction. For purposes of this award
agreement, the term “Change of Control” shall mean an event or occurrence set forth in any one or
more of subsections (a) through (d) below (including an event or occurrence that constitutes a
Change of Control under one of such subsections but is specifically exempted from another such
subsection):

     (a) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership of any capital stock of Skyworks if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 40% or more
of either (x) the then-outstanding shares of common stock of Skyworks (the “Outstanding Company
Common Stock”) or (y) the combined voting power of the then-outstanding securities of Skyworks
entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change of Control: (i) any acquisition directly from Skyworks
(excluding an acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for, convertible into or exchangeable for common stock or voting securities of
Skyworks, unless the Person exercising, converting or exchanging such security acquired such
security directly from Skyworks or an underwriter or agent of Skyworks), (ii) any acquisition by
Skyworks, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by Skyworks or any corporation controlled by Skyworks, or (iv) any acquisition by any
corporation pursuant to a transaction which complies with clauses (i) and (ii) of subsection (c) of
this Section 1.2; or

     (b) such time as the Continuing Directors (as defined below) do not constitute a majority of
the Board of Directors of Skyworks (the “Board”) (or, if applicable, the Board of Directors of a
successor corporation to Skyworks), where the term “Continuing Director” means at any date a member
of the Board (i) who was a member of the Board on the date of the execution of this Agreement or
(ii) who was nominated or elected subsequent to such date by at

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least a majority of the directors who were Continuing Directors at the time of such nomination
or election or whose election to the Board was recommended or endorsed by at least a majority of
the directors who were Continuing Directors at the time of such nomination or election;
provided, however, that there shall be excluded from this clause (ii) any
individual whose initial assumption of office occurred as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents, by or on behalf of a person other than the Board; or

     (c) the consummation of a merger, consolidation, reorganization, recapitalization or statutory
share exchange involving Skyworks or a sale or other disposition of all or substantially all of the
assets of Skyworks in one or a series of transactions (a “Business Combination”), unless,
immediately following such Business Combination, each of the following two conditions is satisfied:
(i) all or substantially all of the individuals and entities who were the beneficial owners of the
Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors, respectively, of the resulting
or acquiring corporation in such Business Combination (which shall include, without limitation, a
corporation which as a result of such transaction owns Skyworks or substantially all of Skyworks’
assets either directly or through one or more subsidiaries) (such resulting or acquiring
corporation is referred to herein as the “Acquiring Corporation”) in substantially the same
proportions as their ownership, immediately prior to such Business Combination, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, respectively; and (ii) no Person
(excluding any employee benefit plan (or related trust) maintained or sponsored by Skyworks or by
the Acquiring Corporation) beneficially owns, directly or indirectly, 40% or more of the then
outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of
the then-outstanding securities of such corporation entitled to vote generally in the election of
directors (except to the extent that such ownership existed prior to the Business Combination); or

     (d) approval by the stockholders of Skyworks of a complete liquidation or dissolution of
Skyworks.

     7. Withholding Taxes; No Section 83(b) Election.

          (a) No Shares will be delivered pursuant to the vesting of the Participant’s
right to receive the Shares unless and until the Participant pays to the Company, or makes
provision satisfactory to the Company for payment of, any federal, state or local withholding
taxes required by law to be withheld in respect of this award and any Shares issued hereunder.

          (b) The Participant acknowledges that no election under Section 83(b) of the
Internal Revenue Code of 1986 may be filed with respect to this award or the Shares issued hereunder.

     8. Miscellaneous.

          (a)No Rights to Employment. The Participant acknowledges and agrees that
the vesting of his or her right to receive Shares pursuant to Section 2 hereof is triggered only by
the achievement by the Company of the Target(s) and continuing service until the Company has
made a determination that such Target(s) has (have) been achieved. The Participant further

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acknowledges and agrees that the transactions contemplated hereunder and the vesting events set
forth herein do not constitute an express or implied promise of continued engagement as an
employee or consultant for the vesting period, for any period, or at all.

          (b) Non-Solicitation. The Participant agrees that while employed by the
Company and for one year thereafter, he or she will not, either directly or through others, raid,
solicit, or attempt to solicit any employee of the Company to terminate his or her relationship
with the Company in order to become an employee to or for any other person or entity.
Participant further agrees that he or she will not disrupt or interfere or attempt to disrupt or
interfere with the Company’s relationships with such employees. Participant also agrees that in
addition to any damages that may be recovered, the prevailing party in any legal action to
enforce this agreement shall be entitled to recover its costs and attorneys’ fees from the other party.

          (c) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, and each other provision of this Agreement shall be severable and enforceable to the
extent permitted by law.

          (d) Waiver. Any provision for the benefit of the Company contained in this
Agreement may be waived, either generally or in any particular instance, by the Board of
Directors of the Company.

          (e) Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the Company and the Participant and their respective heirs, executors, administrators,
legal representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 4 of this Agreement.

          (f) Notice. All notices required or permitted hereunder shall be in writing
and deemed effectively given upon personal delivery or five days after deposit in the United
States Post Office, by registered or certified mail, postage prepaid, addressed to the other party
hereto at the address shown beneath his or its respective signature to this Agreement, or at such
other address or addresses as either party shall designate to the other in accordance with this
Section 8(e).

          (g) Pronouns. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns and pronouns shall include the plural, and vice versa.

          (h) Entire Agreement. This Agreement and the Plan constitute the entire
agreement between the parties, and supersedes all prior agreements and understandings, relating
to the subject matter of this Agreement.

          (i) Amendment. This Agreement may be amended or modified only by a
written instrument executed by both the Company and the Participant.

          (j) Governing Law. This Agreement shall be construed, interpreted and
enforced in accordance with the internal laws of the State of Delaware without regard to any
applicable conflicts of laws.

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          (k) Participant’s Acknowledgments. The Participant acknowledges that he or
she: (i) has read this Agreement; (ii) understands the terms and consequences of this Agreement;
and (iii) is fully aware of the legal and binding effect of this Agreement.

          (l) Unfunded Rights. The right of the Participant to receive Common Stock
pursuant to this Agreement is an unfunded and unsecured obligation of the Company. The
Participant shall have no rights under this Agreement other than those of an unsecured general
creditor of the Company.

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          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

	 	 	 	 	 
	 	Skyworks Solutions, Inc.

 	 
	 	
 	 
	 	Name:  	David Aldrich             	 
	 	Title:  	President and CEO 	 
	 
	 	______________________________

Signed: [NAME]

 	 
	 	 	 
	 	 	 
	 	 	 

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Exhibit A

[PERFORMANCE
TARGETS]

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EXHIBIT 10.18

Description of the RPS Performance Bonus Award Process

     In fiscal years 2006 and 2007, Old RPS and RPS determined and awarded performance
bonuses in the same manner. In each case, the Board of Directors reviewed and approved an annual
budget that included a provision for awarding bonuses to the executive officers based upon
achieving performance targets established by the Board of Directors for each fiscal year.
Depending on whether Old RPS or RPS, as applicable, achieved, exceeded or fell short of the
financial target established by the Board of Directors, the Board of Directors determined, in its
sole discretion, whether an amount equal to or greater or less than the budgeted amount was paid in
performance bonuses. The targets established by the Board of Directors serve as general guidelines
for determining bonuses, but the ultimate determination regarding the performance bonus amount
awarded to individual executive officers is at the discretion of the Board of Directors, taking
into account any contractual provisions in an executive’s employment agreement. During 2006 and
2007, progress towards meeting the financial target was evaluated on a quarterly basis. Each
executive officer was awarded 50% of the bonus that the Board of Directors determined that
executive officer was entitled to receive for the relevant quarter, and the remaining bonus amounts
were paid at the end of the fiscal year.

     The performance target established by the Board of Directors of Old RPS in fiscal year 2006
was an EBITDA target of $3,000,000, for which an aggregate bonus pool of $550,000 was available to
the executive officers of Old RPS. In addition, the Board of Directors had the discretion to
increase the amount available in the bonus pool based on Old RPS exceeding the established EBITDA
target. For example, if EBITDA for 2006 exceeded the established target by up to $150,000, 100% of
such excess could be added to the aggregate amount available for bonuses. Up to 25% of the next
$550,000 in EBITDA could be contributed to the aggregate bonus pool, as well as 15% of any
additional excess EBITDA amounts. The Board of Directors of Old RPS had sole discretion in
determining whether to increase the size of the aggregate bonus pool if the EBITDA target was
exceeded, as well as determining the percentage of the aggregate bonus pool to be paid to
individual executive officers. In determining the amounts to be paid to individual executive
officers, the Board of Directors of Old RPS considered factors including the performance of the
individual executive and the performance of Old RPS as a whole, in addition to the performance
target as measured by EBITDA.

     No executive officer is guaranteed to receive a bonus with the exception that Dr. Koffer’s
bonus was guaranteed for his service in 2006 following his hire in July of 2006.

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