Document:

KLAC 10Q EX 10.43 093011

Exhibit 10.43

NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by KLA-Tencor Corporation to the Securities and Exchange Commission (the “SEC”). Such portions have been redacted and are marked with a “**” in place of the redacted language. The redacted information has been filed separately with the SEC.

FY12 EXECUTIVE INCENTIVE PLAN
(Annual Executive Bonus)

Plan Summary
The KLA-Tencor Executive Incentive Plan (the “Plan”) is intended to motivate senior executives to achieve short-term and long-term corporate objectives by providing a competitive bonus for target performance and potential upside for outstanding performance.  

Plan Period
This Plan is effective for the fiscal year period from July 1, 2011 through June 30, 2012.  Newly eligible employees (e.g. employees promoted to an incentive-eligible position for the first time or a new hire) must be in an eligible position on or before April 1, 2012 and recorded in the HR system in order to qualify for participation in this fiscal year.

Eligible Positions
The Company's Chief Executive Officer (CEO) and Executives holding a position at the X02 level and above are eligible to participate in the Plan.

Program Payments
Bonus payments, based on performance during the Plan Period, will be paid within 90 days following June 30, 2012.  Bonus calculations are based on paid base salary for the applicable Plan Period.  Paid base salary includes base salary and seasonal bonuses paid in some countries if the seasonal bonus is considered a component of the employee's annual salary.  Paid base salary does not include relocation allowances and reimbursements, tuition reimbursements, car/transportation allowances, expatriate allowances, commissions, long-term disability payments, or bonuses paid during the fiscal year.  A participant must be a regular, active employee of the Company on the date of the payout in order to receive payment.  Employees who are promoted or hired into an eligible position during the year (on or before April 1) will have their payouts calculated on paid salary from the effective date of the promotion or hire. If an employee's target bonus changes during the year, the payout will be prorated.

Target Bonus
A target bonus is established as a percent of base salary for each Plan participant.

Funding Threshold
Total available funding for the Plan will be determined by performance against a threshold level as measured by Balanced Scorecard and Operating Margin (OM) %* performance for the fiscal year. The Plan will be fully funded (equivalent to the sum, for all Plan participants in the aggregate, of 3.00 times the product of each Plan 
____________________
* References in this Plan to Operating Margin refer to the Company's calculation of non-GAAP Operating Margin 

participant's target bonus percentage and base salary during the Plan Period) upon achievement of Operating Margin Performance of **%. This performance threshold constitutes the performance threshold for purposes of Section 162(m) of the Internal Revenue Code (Section 162(m)). This fully funded amount represents the maximum bonus opportunity for each Plan participant and the maximum total cost of the Plan.

Effective July 1, 2011

Performance Matrix and Determination of Funding Available for Bonus Payments
The level of funding available for payment to participating executives will be based on performance as measured against the Corporate Balanced Scorecard and OM performance, as provided in the table (“FY12 Executive Bonus Payout Table”) below.  Amounts in the table represent the multiple of each Executive's target bonus available for allocation of bonus payments.

Individual Performance and Determination of Executive Bonus Payments
Each individual Executive's actual bonus payment amount will be based on the CEO's assessment of the Executive's performance for the year and determination of an Individual Performance Multiplier (“IPM”) ranging from 80-120%.  The IPM is multiplied by the Executive's target bonus and the multiple achieved from the Performance Matrix to determine the actual bonus payment amount (see bonus calculation below).  Each Executive's performance will be evaluated based on how effectively they led their organization as demonstrated against the key Balanced Scorecard measures and objectives for the Executive's respective organization.  The IPM and final bonus payments for each Plan participant who is an executive officer of the Company for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, with the exception of the CEO, will be recommended by the CEO and reviewed and approved by the Compensation Committee.  The IPM and final bonus for the CEO will be determined by the Company's Board of Directors. 
____________________
** This information has been omitted pursuant to a request for confidential treatment and has been filed separately with the SEC.

Bonus Calculation
The formula for a participant's bonus calculation is:

Participant's Paid Base Salary for Plan Period
x Participant's Target Bonus Percentage
x Payout Multiple from the Executive Bonus Payout Table
x Participant's Individual Performance Multiplier (IPM)

In no event can an individual bonus payment to a participant exceed 3.00 times such participant's Target Bonus.

General Provisions
The Compensation Committee (or the independent members of the Company's Board of Directors, within the meaning set forth in Section 162(m) (the “Independent Directors”)) shall be the Plan Administrator.  The Compensation Committee (or the Independent Directors) shall make such rules, regulations, interpretations and computations and shall take such other action to administer the Plan as it may deem appropriate.  The establishment of the Plan shall not confer any legal rights upon any employee or other person for a continuation of employment, nor shall it interfere with the rights of the Company to discharge any employee and to treat him or her without regard to the effect which that treatment might have upon him or her as a participant in the Plan.

Effective July 1, 2011

This Plan shall be construed, administered and enforced by the Compensation Committee (or the Independent Directors), in its sole discretion.  The laws of the State of California will govern any legal dispute involving the Plan.  The Compensation Committee (or the Independent Directors) may at any time alter, amend or terminate the Plan, subject to the requirements of Section 162(m).

Effective July 1, 2011exhibit_4-16.htm

Exhibit 4.16

 

(Front Side of Common Stock Certificate)

 

	  	  	  
	
NUMBER:

	  	
COMMON STOCK

	
RI

	  	  SHARES

 

(Realty Income Corporation Logo)

 

REALTY INCOME CORPORATION

 

	  	  	  
	  	  	
SEE REVERSE FOR IMPORTANT NOTICE ON TRANSFER RESTRICTIONS AND OTHER INFORMATION

	  	  	  
	
INCORPORATED UNDER THE LAWS

OF THE STATE OF MARYLAND

	
THIS CERTIFICATE IS TRANSFERABLE IN SOUTH SAINT PAUL, MN.

	
CUSIP 756109 10 4

SEE REVERSE FOR CERTAIN DEFINITIONS

 

This certifies that

 

is the record holder of

 

 

FULLY PAID AND NONASSESSABLE SHARES OF THE COMMON STOCK, $0.01 PAR VALUE, OF

 

 

Realty Income Corporation transferable on the books of the Corporation by the holder hereof in

person or by duly authorized attorney upon surrender of this Certificate properly endorsed. This Certificate is not

valid until countersigned by the Transfer Agent and registered by the Registrar.

 

Witness the seal of the Corporation and the signatures of its duly authorized officers.

 

Dated:

 

	
/s/ DONALD R. CAMERON

	  	  	  	  
	
CHAIRMAN

	  	  	  	  
	  	  	  	  	  
	
/s/ MICHAEL R. PFEIFFER

	  	  	  	  
	
SECRETARY

	  	  	  	  
	  	  	  	  	  

 

COUNTERSIGNED AND REGISTERED:

WELLS FARGO BANK, N.A.

 

	
By:

	  	
 

	  	
(Corporate Seal)

	
/s/ TODD J. MAY

	  	  	  	  
	
TRANSFER AGENT AND REGISTRAR

 

AUTHORIZED SIGNATURE 

	  	
 

	  	  

 

 

  

  

  

 

(Back Side of Common Stock Certificate)

 

IMPORTANT NOTICE

 

The Corporation will furnish to any stockholder, on request and without charge, a full statement of the information required by Section 2-211(b) of the Corporations and Associations Article of the Annotated Code of Maryland with respect to the designations and any preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms and conditions of redemption of the stock of each class which the Corporation has authority to issue and (if the Corporation is authorized to issue any preferred or special class in series), (i) the differences in the relative rights and preferences between the shares of each series to the extent set, and (ii) the authority of the Board of Directors to set such rights and preferences of subsequent series. The foregoing summary does not purport to be complete and is subject to and qualified in its entirety by reference to the charter of the Corporation (the "Charter"), a copy of which will be sent without charge to each stockholder who so requests. Requests for such written statement may be directed to the Secretary of the Corporation, at the Corporation's principal office.

 

The shares represented by this certificate are subject to the restrictions on Beneficial and Constructive Ownership and Transfer for the purpose of the Corporation's maintenance of its status as a Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended (the "Code"). Subject to certain further restrictions and except as expressly provided in the Corporation's Charter, (i) no Person may Beneficially Own in excess of 9.8% of the outstanding Common Shares of the Corporation (by value or by number of shares, whichever is more restrictive); (ii) no Person may Constructively Own in excess of 9.8% of the outstanding Common Sharess of the Corporation (by value or by number of shares, whichever is more restrictive); (iii) no Person may Beneficially or Constructively Own Common Shares that would result in the Corporation being "closely held" under Section 856(h) of the Code or otherwise cause the Corporation to fail to qualify as a REIT; and (iv) no Person may Transfer Common Shares if such Transfer would result in the capital stock of the Corporation being owned by fewer than 100 Persons. Any Person who Beneficially or Constructively Owns or attempts to Beneficially or Constructively Own Common Shares which causes or will cause a Person to Benefically or Constructively Own Common Shares in excess of the above limitations must immediately notify the Corporation. If any of the restrictions on transfer or ownership are violated, the Common Shares represented hereby will be automatically transferred to a Trustee of a Trust for the benefit of one or more Charitable Beneficiaries. In addition, the Corporation may redeem shares upon the terms and conditions specified by the Board of Directors in its sole discretion if the Board of Directors determines that ownership or a Transfer or other event may violate the restrictions described above. Furthermore, upon the occurrence of certain events, attempted Transfers in violation of the restrictions described above may be void AB INITIO. All capitalized terms in this legend have the meanings defined in the Charter of the Corporation, as the same may be amended from time to time, a copy of which, including the restrictions on transfer and ownership, will be furnished to each holder of Common Shares on request and without charge. Requests for such a copy may be directed to the Secretary of the Corporation, at the Corporation's principal office.

 

The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	  	  	  	  	  	  	  	  	  	  	  
	
TEN COM

	  	
--

	  	
As tenants in common

	  	
UNIF GIFT MIN ACT

	  	
--

	  	
______Custodian________

	
TEN ENT

	  	
--

	  	
As tenants by the entireties

	  	  	  	  	  	
(Cust)                    (Minor)

	
JT TEN

	  	
--

	  	
As joint tenants with right of

	  	  	  	  	  	
under Uniform Gifts to Minors

	  	  	  	  	
survivorship and not as tenants

	  	  	  	  	  	
Act___________________

	  	  	  	  	
in common

	  	  	  	  	  	
                    (State)

	  	  	  	  	  	  	
UNIF TRF MIN ACT

	  	
--

	  	
______Custodian (until age____)

	  	  	  	  	  	  	  	  	  	  	
(Cust)

	  	  	  	  	  	  	  	  	  	  	
______under Uniform Transfers

	  	  	  	  	  	  	  	  	  	  	
(Minor)

	  	  	  	  	  	  	  	  	  	  	
to Minors Act______________

	  	  	  	  	  	  	  	  	  	  	
                                (State)

 

Additional abbreviations may also be used though not in the above list.

 

 

FOR VALUE RECEIVED, ______________________________hereby sell assign and transfer unto

 

 

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

 

 

________________________________________________

 

	  	  	  
	  
	
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

	  
	  
	  
	  

	  	  	
Shares

	
of the common stock represented by the within Certificate, and do hereby irrevocably constitute and appoint

	  	  

 

	  	  	
Attorney

	
to transfer the said stock on the books of the within named Corporation with full power of substitution in the premises.

	  	  	  	  

 

Dated _____________________________________________________________

 

	  	  	  	  	  
	  	  	
X

	  	  	  	  	  
	  	  	  	  	  
	  	  	
X

	  	  	  	  	  
	
NOTICE:

	  	
THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME(S) AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

 

Signature(s) Guaranteed                                       

This certificate also evidences and entitles the holder hereof to

certain rights as set forth in an Agreement between Realty Income

Corporation (the "Corporation") and The Bank of New York, as

Rights Agent, dated as of June 26, 1998, as the same may be

amended from time to time (the "Agreement"), the terms of which

are hereby incorporated herein by reference and a copy of which

is on file at the principal executive offices of the Corporation.

Under certain circumstances, as set forth in the Agreement, such

Rights will be represented by separate certificates and will no

longer be represented by this certificate.  The Corporation will mail

to the holder of this certificate a copy of the Agreement without

charge after receipt of a written request therefor.  As described in

the Agreement, Rights which are owned by, transferred to or have

been owned by Acquiring Persons or Associates or Affiliates

thereof (as defined in the Agreement) shall become null and void

and will no longer be transferable.

By_____________________________________________________________________________________

THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS,

STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN

APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

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