Document:

exv10wf

 

Exhibit 10.F

SKYWORKS SOLUTIONS, INC.

1996 LONG-TERM INCENTIVE PLAN

Section I. Purpose of the Plan.

The purposes of this Skyworks Solutions, Inc. 1996 Long-term Incentive Plan (the “1996 Plan”) are
(i) to provide long-term incentives and rewards to those key employees (the “Employee
Participants”) of Skyworks Solutions, Inc. (the “Corporation”) and its subsidiaries (if any), and
any other persons (the “Non-employee Participants”) who are in a position to contribute to the
long-term success and growth of the Corporation and its subsidiaries, (ii) to assist the
Corporation in retaining and attracting executives and key employees with requisite experience and
ability, and (iii) to associate more closely the interests of such executives and key employees
with those of the Corporation’s stockholders.

Section II. Definitions.

“Code” is the Internal Revenue Code of 1986, as it may be amended from time to time.

“Common
Stock” is the $.25 per value common stock of the Corporation.

“Committee” is defined in Section III, paragraph (a).

“Corporation” is defined in Section I.

“Corporation ISOs” are all stock options (including 1996 Plan ISOs) which (i) are Incentive Stock
Options and (ii) are granted under any plans (including this 1996 Plan) of the Corporation, a
Parent Corporation and/or a Subsidiary Corporation.

“Employee Participants” is defined in Section 1.

“Expiration Date” is defined in Section IV(a)(ii).

“Fair Market Value” of any property is the value of the property as reasonably determined by the
Committee.

“Free Shares” are Restricted Shares as to which the restrictions against disposition and the
obligation of resale to the Corporation have lapsed.

“Incentive Stock Option” is a stock option which is treated as an incentive stock option under
Section 422 of the Code.

“1996 Plan” is defined in Section 1.

“1996 Plan ISOs” are Stock Options which are Incentive Stock Options.

“Non-employee Participants” is defined in Section I.

“Non-qualified Option” is a Stock Option which does not qualify as an Incentive Stock Option or for
which the Committee provides, in the terms of such option and at the time such option is granted,
that the option shall not be treated as an Incentive Stock Option.

“Parent Corporation” has the meaning provided in Section 424(e) of the Code.

“Participants” are all persons who are either Employee Participants or Non- employee Participants.

1

 

“Permanent and Total Disability” has the meaning provided in Section 22(e)(3) of the Code.

“Restricted Share Awards” are grants of Restricted Shares.

“Restricted Shares” are shares of Common Stock acquired by a Participant subject to the
restrictions set forth in Section IV.

“Section 16” means Section 16 of the Securities Exchange Act of 1934, as amended, or any similar or
successor statute, and any rules, regulations, or policies adopted or applied thereunder.

“Stockholder Approval” means the affirmative vote of at least a majority of the shares of Common
Stock present and entitled to vote at a duly held meeting of the stockholders of the Corporation,
unless a greater vote is required by state law or Section 16, if applicable to the Corporation, in
which case such greater requirement shall apply. Stockholder approval may be obtained by written
consent or other means, to the extent permitted by applicable state law. Awards may be made
hereunder prior to the date of, but subject to, such approval.

“Stock Options” are rights granted pursuant to this 1996 Plan to purchase shares of Common Stock at
a fixed price.

“Subsidiary Corporation” has the meaning provided in Section 424(f) of the Code.

“Ten Percent Stockholder” means, with respect to a 1996 Plan ISO, any individual who directly or
indirectly owns stock possessing more than 10% of the total combined voting power of all classes of
stock of the Corporation or any Parent Corporation or any Subsidiary Corporation at the time such
1996 Plan ISO is granted.

Section III. Administration.

(a) The Committee. This 1996 Plan shall be administered by a compensation committee designated by
the Board of Directors of the Corporation, which may include any persons (including any or all of
the directors) designated by the Board of Directors (the administering body is hereafter referred
to as the “Committee”). The Committee shall serve at the pleasure of the Board of Directors, which
may from time to time, and in its sole discretion, discharge any member, appoint additional new
members in substitution
for those previously appointed and/or fill vacancies however caused. A majority of the Committee
shall constitute a quorum and the acts of a majority of the members present at any meeting at which
a quorum is present shall be deemed the action of the Committee. No person shall be eligible to be
a member of the Committee if that person’s membership would prevent the plan from complying with
Section 16, if applicable to the Corporation. At such time as any class of equity security of the
Corporation is registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended
(the “Act”), (i) the Committee shall consist of at least two members of the Board of Directors and
(ii) to the extent required by Rule 16b-3 promulgated under the Act, each member of the Committee
while a member thereof shall be a “Non-Employee Director” as defined in Rule 16b-3.

(b) Authority and Discretion of the Committee. Subject to the express provisions of This 1996 Plan
and provided that all actions taken shall be consistent with the purposes of this 1996 Plan, and
subject to ratification by the Board of Directors only if required by applicable law, the Committee
shall have frill and complete authority and the sole discretion to: (i) determine those persons who
shall constitute key employees eligible to be Employee Participants; (ii) select the Participants
to whom awards shall be granted under this 1996 Plan; (iii) determine the size and the form of the
award or, if any, to be granted to any Participant; (iv) determine the time or times such awards
shall be granted including the grant of Stock Options and Restricted Share Awards in connection
with other awards made, or compensation paid, to the Participant; (v) establish the terms and
conditions upon which such awards may be exercised and/or transferred, including the exercise of
Stock Options in connection with other awards made, or compensation paid, to the Participant; (vi)
make or alter any restrictions and conditions upon such awards; and (vii) adopt such rules and
regulations, establish, define and/or interpret these and any other terms and conditions, and make
all determinations (which may be on a case-by-case basis) deemed necessary or desirable for the
administration of this 1996 Plan. Notwithstanding any provision of this 1996 Plan to the contrary,
only Employee Participants shall be eligible to receive 1996 Plan ISOs.

2

 

(c) Applicable Law. This 1996 Plan, and all awards shall be governed by the law of the state in
which the Corporation is incorporated.

Section IV. Awards

Awards under this 1996 Plan may include Stock Options and Restricted Share Awards, all as described
herein.

	(a)	 	Stock Options.

(i) Form of Agreement. Stock Options shall be evidenced by a writing or
written agreement between the Corporation and the Participant awarded the Stock Option. This document shall be in such
form, and contain such terms and conditions (not inconsistent with this 1996 Plan) as the
Committee may determine. If the Stock Option described
therein is not intended to be an Incentive Stock Option, but otherwise qualifies as an
Incentive Stock Option, the agreement shall include the following, or a similar, statement:
“This stock option is not intended to be an Incentive Stock Option, as that term is
described in Section 422 of the Internal Revenue Code of 1986, as amended.”

(ii) Period of Exercisability. Stock Options shall be for such periods as
may be determined by the Committee. In no event may a 1996 Plan ISO be exercisable (including provisions, if any,
for exercise in installments) subsequent to ten years after the date of grant, or, in the
case of 1996 Plan ISOs granted to Ten Percent Stockholders, more than five years after the
date of grant. The date upon which a Stock Option ceases to be exerciseable is the Stock
Option’s “Expiration Date’.

(iii) Purchase Price and Payment. The purchase price of shares purchased
pursuant to any Stock Option
shall be determined by the Committee, and shall be paid by the Participant or other person
permitted to exercise the Stock Option in full upon exercise, (A) in cash, (B) by delivery
of shares of Common Stock (valued at theft Fair Market Value on the date of such exercise),
(C) any other property (valued at its Fair Market Value on the date of such exercise), or
(D) any combination of cash, stock and other property, with any payment made pursuant to
clauses (B), (C) or (D) only as permitted by the Committee, in its sole discretion. In no
event will the purchase price of Common Stock be less than the greater of Fair Market Value
on the date of issuance of the Stock Option or the par value of the Common Stock, provided
that in the case of 1996 Plan ISOs granted to Ten Percent Stockholders, the purchase price
shall not be less than 110% of the Fair Market Value of the Common Stock on the date of
issuance of the 1996 Plan ISO.

(iv) Incentive Options Over $100,000. To the extent that the aggregate
Fair Market Value of Common
Stock with respect to which Corporation ISOs (determined without regard to this section)
are exercisable for the first time by any Employee Participant during any calendar year
exceeds $109,000, such Corporation ISOs shall be treated as options which are not
Incentive Stock Options. For the purpose of this limitation, options shall be taken into
account in the order granted, and the Committee may designate that portion of any
Corporation ISO that shall be treated as not an Incentive Stock Option in the event that
the provisions of this paragraph apply to a portion of any option, unless otherwise
required by the Code or regulations of the Internal Revenue Service. The designation
described in the preceding sentence may be made at such time as the Committee considers
appropriate, including after the issuance of the Stock Option or at the time of its
exercise. For the purpose of this section, Fair Market Value shall be determined as of the
time the option with respect to such stock is granted. For the purposes of this limitation,
options shall be taken into account in the order granted.

(v) Vesting and Transferability. At the discretion of the Committee, the
Common Stock issued pursuant
to the Stock Options granted hereunder may be subject to restrictions on vesting or
transferability.

(vi) Termination of Employment and Other Events. If a Participant’s
employment or relationship with the Corporation is terminated, then that
Participant’s Stock Options may be exercised as to all shares that have not been
previously purchased only in accordance with the following provisions and
notwithstanding any other provision of this Plan —

3

 

a. In the event of termination by reason of a Participant’s death, the Participant’s Stock Options
may be exercised as to all vested and unvested shares until the earlier of the Expiration Date or
twelve (12) months after the date of death.

b. In the event of termination by reason of a Participant’s permanent and total disability, the
Participant’s Stock Options may be exercised as to all shares vested as of the date of the
termination until the earlier of the Expiration Date or six (6) months after the date of
termination. Shares not vested as of the date of the termination may not be exercised.

c. In the event of termination for Cause, the Participant’s Stock Options may not be exercised as
to any shares, whether or not they were previously vested. “Cause” shall mean: (i) deliberate
dishonesty significantly detrimental to the best interests of the Corporation or any subsidiary or
affiliate; (ii) conduct constituting an act of moral turpitude; (iii) willful disloyalty to the
Corporation Or refusal or failure to obey the directions of supervisors; or (iv) inadequate
performance or inattention to or neglect of duties. The Corporation’s appropriate management
personnel shall determine whether termination was for Cause.

d. In the event of termination for any other reason, including without limitation termination
without Cause and voluntary resignation, the Participant’s Stock Options may be exercised as to all
shares vested as of the date of the termination until the earlier of the Expiration Date or three
(3) months after the date of termination. Shares not vested as of the date of the termination may
not be exercised.

(b) Restricted Share Awards. Restricted Shares may be issued for any lawful consideration and on
such terms as may be determined by the Committee, subject to the restrictions described in the
following subsections.

(i) Nontransferability and Repurchase. Shares may not be sold, transferred or otherwise disposed
of, pledged or otherwise encumbered, except (A) if they become Free Shares in accordance with their
terms and the terms of this 1996 Plan, (B) if the Corporation declines to repurchase such shares,
as provided in this paragraph, or (C) as provided in paragraph (g) of Section VIII. In the event of
the recipient’s termination of employment for any reason except death, retirement or permanent
disability, Restricted Shares which have not become Free Shares shall be delivered to the
Corporation within 30 days following such termination. Within 60 days following a timely delivery
of said shares, the Corporation may repurchase all or a portion of said shares by paying to the
recipient the original acquisition price, if any, for the number of shares that the Corporation
elects to purchase, and the Corporation will return to the recipient any shares not so purchased.
The restrictions against disposition and the obligation of resale to the Corporation shall
lapse as to any shares which the Corporation declines to purchase. Any of such shares which are not
delivered to the Corporation within 30 days following the termination of employment shall be deemed
void for all corporate purposes, and shall remain subject to the restrictions imposed thereon which
restrictions shall not lapse as otherwise provided. Nothing in this Section shall require the
Company to repurchase Restricted Shares issued to Participants under the 1996 Plan.

(ii) Transferability after Death, Retirement or Disability. Upon the occurrence of the earlier of
the death, retirement or permanent disability of the recipient of a Restricted Share Award, the
restrictions against disposition and the obligation of resale to the Corporation of shares as to
which such restrictions and obligations have not otherwise lapsed shall immediately lapse.

(iii) Terms of Restricted Shares Discretionary with Committee. In addition to or in lieu of the
terms provided in paragraph (b)(ii) above, the Committee may, in its discretion, provide terms
pursuant to which Restricted Shares issued to a Participant shall become Free Shares. In this
regard, the Committee may, in its discretion, provide that the Restricted Shares shall immediately
become Free Shares upon issuance. Such terms shall be incorporated into the terms of the Restricted
Share Award at the time of the granting of the award, and may also be made a part of an agreement
between the Corporation and the recipient at the time of the transfer of the Restricted Shares.

4

 

(iv) Registration and Legend. Certificates issued in respect of Restricted Shares awarded
under the 1996 Plan shall be registered in the name of the recipient but shall bear the following
legend if such Restricted Shares do not immediately become Free Shares:

“The transferability of this certificate and the shares of stock represented hereby is restricted
and the shares are subject to the further terms and conditions contained in the Skyworks Solutions,
Inc. 1996 Long-Term Incentive Plan and in a repurchase agreement executed pursuant thereto. Copies
of said plan and agreement are on file in the office of the Treasurer of the Company at the
Company’s offices in Woburn, Massachusetts.”

(v) Deposit of Restricted Shares. In order to enforce the restrictions, terms and conditions on
Restricted Shares, the Committee may in its discretion require each recipient thereof, immediately
upon receipt of a certificate or certificates representing such shares, to deposit such
certificates together with stock powers and other instructions of transfer as the Committee may
require, appropriately endorsed in blank, with the Corporation as Escrow Agent under an escrow
agreement in such form as shall be determined by the Committee.

(vi) Restricted Shares Subject to the Plan. Notwithstanding the provisions of Section VII below,
the total number of Restricted Shares which may be awarded under this 1996 Plan shall not exceed
200,000.

Section V. Amendment and Termination; Adjustments Upon Changes in Stock.

(a) Power to Amend and Restrictions on Amendment. The Board of Directors of the Corporation may at
any time, and from time to time, amend, suspend or terminate this 1996 Plan in whole or in part;
provided, however, that, in the case of Incentive Stock Options, to the extent required by the
Internal Revenue Code, as amended, neither the Board of Directors nor the Committee may amend or
modify the definition of Employee Participants, or increase the number of shares of Common Stock
reserved for purposes of this 1996 Plan, without Stockholder Approval in compliance with the Code
and the rules and regulations thereunder. Except as provided herein, no amendment, suspension or
termination of this 1996 Plan may affect the rights of a Participant to whom an award has been
granted without such Participant’s consent. The Committee is specifically authorized to convert, in
its discretion, the unexercised portion of any 1996 Plan ISO granted to an Employee Participant to
a Non-qualified Option at any time prior to the exercise, in full, of such 1996 Plan ISO.

(b) Merger
or Consolidation, If the Corporation is a party to any merger or consolidation, any
purchase or acquisition of property or stock, or any separation, reorganization or liquidation, the
Board of Directors (or, if the Corporation is not the surviving corporation, the board of directors
of the surviving corporation) shall have the power to make arrangements, which shall be binding
upon the holders of Restricted Shares and unexpired Stock Options, for the substitution of new
options for, or the assumption by another corporation of, any Restricted Shares or unexpired Stock
Options then outstanding hereunder.

(c) Adjustment of Exercise Price after Corporate Event. If by reason of recapitalization,
reclassification, stock split-up, combination of shares, separation (including a spin-off) or
dividend on the stock payable in shares of Common Stock, the outstanding shares of Common Stock are
increased or decreased or changed into or exchanged for a different number or kind of shares or
other securities of the Corporation, the Board of Directors shall conclusively determine the
appropriate adjustment in the exercise prices of outstanding Stock Options and repurchase price of
outstanding Restricted Shares and in the number and kind of shares as to which outstanding Stock
Options shall be exercisable.

(d) Adjustment of Number of Shares after Corporate Event. In the event of a transaction of the type
described in paragraphs (b) and (c) above, the total number of shares of Common Stock on which
Stock Options or as to which Restricted Shares may be granted under this 1996 Plan shall be
appropriately adjusted by the Board of Directors.

5

 

Section VI. Change of Control Provisions.

(a) Notwithstanding any other provision of the Plan to the contrary, in the event of a Change of
Control, any Options outstanding as of the date such Change of Control is determined to have
occurred and not then exercisable shall become fully exercisable to the full extent of the original
grant.

(b) A “Change in Control” will be deemed to have occurred if the Continuing Board of
Skyworks shall have ceased for any reason to constitute a majority of the Board of Directors of
Skyworks. For this purpose, a “Continuing Director” will include any member of the Board of
Directors of Skyworks as of the Effective Date and any person nominated for election to the Board
of Directors of Skyworks by a majority of the then Continuing Directors.

Section VII. Shares of Stock Subject to the Plan.

The number of shares of Common Stock that may be the subject of awards under this 1996 Plan shall
not exceed an aggregate of 1,400,000 shares. Shares to be delivered under this 1996 Plan may be
either authorized but unissued shares of Common Stock or treasury shares. My shares subject to a
Stock Option hereunder which for any reason terminates, is canceled or otherwise expires
unexercised, shares reacquired by the Corporation because restrictions do not lapse and any shares
reacquired by the Corporation due to restrictions imposed on the shares, shares returned because
payment is made hereunder in stock of equivalent value rather than in cash, and/or shares
reacquired from a recipient for any other reason shall, at such time, no longer count towards the
aggregate number of shares which have been the subject of Stock Options and Restricted Shares
issued hereunder, and such number of shares shall be subject to further awards under this 1996
Plan.

Section VIII. Miscellaneous Provisions.

(a) Indemnity. Neither the Board of Directors nor the Committee, nor any members of either, nor any
employees of the Corporation or any parent, subsidiary, or other affiliate, shall be liable for any
act, omission, interpretation, construction or determination made in good faith in connection with
their responsibilities with respect to this 1996 Plan, and the Corporation hereby agrees to
indemnify the members of the Board of Directors, the members of the Committee, and the employees of
the Corporation and its parent or subsidiaries in respect of any claim, loss, damage, or expense
(including reasonable counsel fees) arising from any such act, omission, interpretation,
construction or determination to the full extent permitted by law.

(b) Participation by Foreigners. Without amending this 1996 Plan, except to the extent required by
the Code in the case of Incentive Stock Options, the Committee may modify grants made to
participants who are foreign nationals or employed outside the United States so as to recognize
differences in local law, tax policy, or custom.

(c) Rights of Recipients of Awards. The holder of any Stock Option granted under the 1996 Plan
shall have no rights as a stockholder of the Corporation with respect thereto unless and until
certificates for shares are issued. Except as otherwise provided herein, the holder of Restricted
Shares will be entitled to receive any dividends on such shares in the same amount and at the same
time as declared on shares of Common Stock of the Company and shall be entitled to vote such shares
as a stockholder of record.

(d) Assignment of Stock Options. No Stock Option or Restricted Shares or any rights or interests of
the recipient therein shall be assignable or transferable by such recipient except by will or the
laws of descent and distribution. During the lifetime of the recipient,
such Stock Option shall be exercisable only by, or payable only to, the recipient thereof.

(e) Legal and Other Requirements. No shares of Common Stock shall be issued or transferred upon
grant or exercise of any award under the 1996 Plan unless and until all legal requirements
applicable to the issuance or transfer of such shares and such other requirements as are consistent
with the 1996 Plan have been complied with to the satisfaction of the Committee. Furthermore, the
Corporation is not obligated to register or qualify Restricted Shares or the shares of Common Stock
to be issued upon exercise of a Stock Option under federal or

6

 

state securities laws (or to register them at any time thereafter), and it may refuse to issue
such shares if, in its sole discretion, registration or exemption from registration is not
practical or available. The Committee may require that prior to the issuance or transfer of Common
Stock hereunder, the recipient thereof shall enter into a written agreement to comply with any
restrictions on subsequent disposition that the Committee or the Company deem necessary or
advisable under any applicable law, regulation or official interpretation thereof. Certificates of
stock issued hereunder may be legended to reflect such restrictions.

(f) Withholding of Taxes. Pursuant to applicable federal, state, local or foreign laws, the
Corporation may be required to collect income or other taxes upon the grant of awards to, or
exercise of a Stock Option by, a holder. The Corporation may require, as a condition to the
issuance of Restricted Shares or the exercise of a Stock Option, or demand, at such other time as
it may consider appropriate, that the Participant pay the Corporation the amount of any taxes which
the Corporation may determine is required to be withheld or collected, and the Participant shall
comply with the requirement or demand of the Corporation. In its discretion, the Corporation may
withhold shares to be received upon exercise of a Stock Option if it deems this an appropriate
method for withholding or collecting taxes.

(g) Pledge of Shares. Notwithstanding restrictions against disposition of any award made pursuant
to the 1996 Plan, the Committee, in its discretion, may permit any shares acquired under the 1996
Plan to be pledged or otherwise encumbered to secure borrowing by the recipient thereof solely for
the purpose of obtaining the acquisition price to be paid for such shares, provided, that the
amount of such borrowing may not exceed the acquisition price of such shares, and the recipient
must provide the Corporation with a copy of the documents executed in connection with such
borrowing. Any borrowing made by the recipient of an award pursuant to this paragraph (g) must
permit the Corporation to repay the outstanding indebtedness and reacquire the pledged shares in
the event of a default by the recipient under the borrowing documents. Nothing in this paragraph
(g) shall require the Corporation to repay any indebtedness of a Participant or reacquire shares
pledged hereunder.

(h) Right to Awards. No employee of the Corporation or other person shall have any claim or right
to be a Participant in this 1996 Plan or to be granted an award
hereunder. Neither this 1996 Plan nor any action taken hereunder shall be construed as giving any Participant
any right to be retained in the employ of the Corporation. Nothing contained hereunder shall be
construed as giving any Participant or any other person any equity or interest of any kind in any
assets of the Company or creating a trust of any kind or a fiduciary relationship of any kind
between the Company and any such person. As to any claim for any unpaid amounts under the 1996
Plan, any Participant or any other person having a claim for payments shall be an unsecured
creditor.

Section IX. Effective Date and Term of this Plan.

Provided there is Stockholder Approval on or before June 14, 1997, the effective date of this 1996
Plan is June 14, 1996 (the “Effective Date”) and awards under this 1996 Plan may be made for a
period of ten years commencing on the Effective Date. The period during which a Stock Option or
other award may be exercised may extend beyond that time as provided herein.

As amended through June 26, 2002.

7exv10wr

 

EXHIBIT
10.R

FY07 Executive Incentive Plan

	1.	 	Purpose: The FY07 Executive Incentive Plan (the”FY07 Plan”) is designed to reward key
management employees for achieving certain financial and business objectives.
	 
	2.	 	Plan Period: The FY07 Plan covers the period from October 1, 2006 through September 30,
2007.
	 
	3.	 	Eligibility: This program applies to the Chief Executive Officer and his direct reporting
senior executives. Other key employees may be added based upon the recommendation of the
Chief Executive Officer and subsequent approval of the Compensation Committee. Those
employees not covered by this plan may be eligible for other programs established by Skyworks.
	 
	4.	 	Incentive Targets: Participants are eligible to earn a percentage of their base salary for
attaining certain performance objectives. Nominal, target and stretch incentive awards have
been established as follows (shown as a percentage of the participant’s base salary):

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Incentive At	 	Incentive At	 	Incentive At
	Name	 	Nominal	 	Target	 	Stretch
	CEO

	 	 	30	%	 	 	100	%	 	 	200	%
	CFO, VP Sales, Business Unit 

General Managers, VP Ops

	 	 	20	%	 	 	60	%	 	 	120	%
	Other VPs

	 	 	20	%	 	 	50	%	 	 	100	%
	Special Participants

	 	 	10	%	 	 	40	%	 	 	80	%

	5.	 	FY07 Metrics: The performance metrics for FY07 are as follows:

1st Half

	 	 	 	 	 	 	 
	Metric

	 	Nominal
	 	Target
	 	Stretch
	Revenue

	 	REDACTED
	 	REDACTED
	 	REDACTED
	Operating Income $

	 	REDACTED
	 	REDACTED
	 	REDACTED
	Operating Income %

	 	REDACTED
	 	REDACTED
	 	REDACTED

2nd Half1

	 	 	 	 	 	 	 
	Metric

	 	Nominal
	 	Target
	 	Stretch
	Revenue

	 	REDACTED
	 	REDACTED
	 	REDACTED
	Operating Income $

	 	REDACTED
	 	REDACTED
	 	REDACTED
	Operating Income %

	 	REDACTED
	 	REDACTED
	 	REDACTED

 

			
	 	 	1 Preliminary. To be updated after second quarter

     Performance periods are semi-annual. The individual metrics on the prior page are for normal
operations and any extraordinary events and/or charges will be brought to the Compensation
Committee for review and approval.

     Metrics will be weighted based on corporate performance for FY07 as follows:

	 	 	 	 	 	 	 	 	 
	 
Period

	 	Revenue

Growth
	 	Operating

Income $
	 	Operating

Income %
	 	Quality

																	
	1st Half of Fiscal Year

	 	 	0	%	 	 	45	%	 	 	45	%	 	 	10	%
	2nd Half of Fiscal Year*

	 	 	30	%	 	 	30	%	 	 	30	%	 	 	10	%

     The quality metric for FY07 will focus on drivers of our Six Sigma initiative.

 

 

	6.	 	How the Plan Works: Upon completion of the first six months of the Fiscal Year, the Chief
Executive Officer will provide the Compensation Committee with recommendations for incentive
award payments to the named participants of the plan. The Committee will review the
recommendations and approve the actual amount to be paid to each participant. The Committee
will rely upon the CEO for the appropriate distribution of the authorized incentive pool. The
same process will occur for the second six months of the Fiscal Year.
	 
	7.	 	Administration: Actual performance between the Nominal and Target metrics will be paid on a
linear sliding scale beginning at the Nominal percentage and moving up to the Target
percentage. The same linear scale will apply for performance between Target and Stretch
metrics. In order to fund the incentive plans and insure the overall Company’s financial
performance, the following terms apply.

	 	•	 	No incentive award will be paid unless the Company meets its Nominal operating
income goal after accounting for any incentive award payments.
	 
	 	•	 	Payout for the first six month performance period will be capped at 80% of earnings
with 20% being held back until the end of the fiscal year based on sustained
performance.
	 
	 	•	 	Skyworks’ CEO, subject to approval by the Compensation Committee, retains discretion
to award below nominal or above Stretch.

	8.	 	Taxes: All awards are subject to federal, state, local and social security taxes. Payments
under this Plan will not affect the base salary, which is used as the basis for Skyworks’
benefits program.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]