Document:

FORM-2012.12.29-EX10.10

EXHIBIT 10.10 

FORMFACTOR, INC.
EMPLOYEE STOCK PURCHASE PLAN
(As Amended and Restated April 18, 2012)  

1.     Establishment of Plan. FormFactor, Inc. (the “Company”) proposes to grant options for purchase of the Company's Common Stock to eligible employees of the Company and its Participating Subsidiaries (as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this “Plan”). For purposes of this Plan, “Parent Corporation” and “Subsidiary” shall have the same meanings as “parent corporation” and “subsidiary corporation” in Sections 424(e) and 424(f), respectively, of the Internal Revenue Code of 1986, as amended (the “Code”). “Participating Subsidiaries” are Parent Corporations or Subsidiaries that the Board of Directors of the Company (the “Board”) designates from time to time as corporations that shall participate in this Plan. The Company intends this Plan to qualify as an “employee stock purchase plan” under Section 423 of the Code (including any amendments to or replacements of such Section), and this Plan shall be so construed. Any term not expressly defined in this Plan but defined for purposes of Section 423 of the Code shall have the same definition herein. A total of 4,000,000 shares of the Company's Common Stock are reserved for issuance under this Plan.  Such number shall be subject to adjustments effected in accordance with Section 14 of this Plan.

2.     Purpose. The purpose of this Plan is to provide eligible employees of the Company and Participating Subsidiaries with a convenient means of acquiring an equity interest in the Company through payroll deductions, to enhance such employees' sense of participation in the affairs of the Company and Participating Subsidiaries, and to provide an incentive for continued employment.

3.    Administration. This Plan shall be administered by the Compensation Committee of the Board (the “Committee”). Subject to the provisions of this Plan and the limitations of Section 423 of the Code or any successor provision in the Code, or limitations imposed by other taxing jurisdictions, as applicable, all questions of interpretation or application of this Plan shall be determined by the Committee and its decisions shall be final and binding upon all participants. Members of the Committee shall receive no compensation for their services in connection with the administration of this Plan, other than standard fees as established from time to time by the Board for services rendered by Board members serving on Board committees. All expenses incurred in connection with the administration of this Plan shall be paid by the Company.

4.    Eligibility. Any employee of the Company or the Participating Subsidiaries is eligible to participate in an Offering Period (as hereinafter defined) under this Plan except the following:

(a) employees who are not employed by the Company or a Participating Subsidiary prior to the beginning of such Offering Period or prior to such other time period as specified by the Committee, under the Plan;

(b) employees who, together with any other person whose stock would be attributed to such employee pursuant to Section 424(d) of the Code, own stock or hold options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any of its Participating Subsidiaries or who, as a result of being granted an option under this Plan with respect to such Offering Period, would own stock or hold options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any of its Participating Subsidiaries; and

(c) individuals who provide services to the Company or any of its Participating Subsidiaries as independent contractors who are reclassified as common law employees for any reason except for federal income and employment tax purposes. 

Participating in the Plan does not change the status of an employee from being an “at will” employee. 

5.     Offering Dates.  The offering periods of this Plan (each, an “Offering Period”) shall be of twelve (12) months fixed duration commencing on February 1 of each calendar year and ending on January 31 of the subsequent calendar year and of six (6) months fixed duration commencing on August 1 of each calendar year and ending on January 31 of the subsequent calendar year.
The twelve (12) month Offering Periods shall consist of two (2) six month purchase periods and the six (6) month Offering Periods shall consist of one (1) six month purchase period (individually, an appropriate “Purchase Period”) during which payroll deductions of the participants are accumulated under this Plan. The first market trading day of each Offering Period is referred to as the “Offering Date”. The 

last market trading day of each Purchase Period is referred to as the “Purchase Date”. The Committee shall have the power to change the Offering Dates, the Purchase Dates and the duration of Offering Periods or Purchase Periods without stockholder approval if such change is announced prior to the relevant Offering Period or prior to such other time period as specified by the Committee.

6.    Participation in this Plan. Eligible employees may become participants in an Offering Period under this Plan after satisfying the eligibility requirements and by delivering a subscription agreement to the Company prior to the commencement of such Offering Period (or such other time as may be specified by the Company or the Committee). Once an employee becomes a participant in an Offering Period by filing a subscription agreement, such employee will automatically participate in the Offering Period commencing immediately following the last day of the prior Offering Period unless the employee withdraws or terminates participation. Such participant is not required to file any additional subscription agreement in order to continue participation in this Plan.

7.     Grant of Option on Enrollment. Enrollment by an eligible employee in this Plan with respect to an Offering Period will constitute the grant (as of the Offering Date) by the Company to such employee of an option to purchase on the Purchase Date up to that number of shares of Common Stock of the Company determined by a fraction, the numerator of which is the amount accumulated in such employee's payroll deduction account during such Purchase Period and the denominator of which is the lower of (i) eighty-five percent (85%) of the fair market value of a share of the Company's Common Stock on the Offering Date (but in no event less than the par value of a share of the Company's Common Stock), or (ii) eighty-five percent (85%) of the fair market value of a share of the Company's Common Stock on the Purchase Date (but in no event less than the par value of a share of the Company's Common Stock), and provided, further, that the number of shares of the Company's Common Stock subject to any option granted pursuant to this Plan shall not exceed the lesser of (x) the maximum number of shares which may be purchased pursuant to Section 10(a) below with respect to the applicable Purchase Date, or (y) the maximum number of shares which may be purchased pursuant to Section 10(c) below with respect to the applicable Purchase Date. The fair market value of a share of the Company's Common Stock shall be determined as provided in Section 8 below.

8.     Purchase Price. The purchase price per share at which a share of Common Stock will be sold in any Offering Period shall be eighty-five percent (85%) of the lesser of:

(a) The fair market value on the Offering Date; or

(b) The fair market value on the Purchase Date.

The term “fair market value” means, as of any date, the value of a share of the Company's Common Stock determined as follows:

(a) if such Common Stock is then quoted on the Nasdaq Global Market, the last transaction’s price quoted on the Nasdaq Global Market on the date of determination as reported at www.nasdaq.com; 

(b) if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported at www.nasdaq.com; or 

(c) if such Common Stock is publicly traded but is not quoted on the Nasdaq Global Market nor listed or admitted to trading on a national securities exchange, the average of the closing bid and asked prices on the date of determination at www.nasdaq.com.
 
9.    Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares.

(a) The purchase price of the shares is accumulated by regular payroll deductions made during each Purchase Period. The deductions are made as a percentage of the participant's compensation in one percent (1%) increments not less than one percent (1%), nor greater than fifteen percent (15%) or such lower limit set by the Committee. Compensation shall mean all W-2 cash compensation, including, but not limited to, base salary, wages, commissions, overtime, shift premiums, plus draws against commissions (determined consistently for the Company and Participating Subsidiaries), provided, however, that for purposes of determining a participant's compensation, any election by such participant to reduce his or her regular cash remuneration under Sections 125 or 401(k) of the Code shall be treated as if the participant did not make such election. Payroll deductions shall commence on the first payday of the Offering Period and shall continue to the end of the Offering Period unless sooner altered or terminated as provided in this Plan.

(b) A participant may not increase the rate of payroll deductions at any time during an Offering Period. A participant may decrease the rate of payroll deductions during an Offering Period by filing with the Company a new authorization for payroll deductions, in which case the new rate shall become effective as soon as practicable commencing after the Company's receipt of the authorization and shall continue unless otherwise instructed by the Participant. Such decrease in the rate of payroll deductions may be made at any time during an Offering 

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Period, but not more than one (1) change may be made effective during any Purchase Period. A participant may increase the rate of payroll deductions for the subsequent Offering Period beginning in February and a participant may decrease the rate of payroll deductions for any subsequent Offering Period by filing with the Company a new authorization for payroll deductions prior to the beginning of such Offering Period, or such other time period as specified by the Company or the Committee.

(c) A participant may reduce his or her payroll deduction percentage to zero during an Offering Period by filing with the Company a request for cessation of payroll deductions. Such reduction shall be effective beginning as soon as practicable after the Company's receipt of the request and no further payroll deductions will be made for the duration of the Offering Period. Payroll deductions credited to the participant’s account prior to the effective date of the request shall be used to purchase shares of Common Stock of the Company in accordance with Section (e) below. A participant may not resume making payroll deductions during the Offering Period in which he or she reduced his or her payroll deductions to zero.

(d) All payroll deductions made for a participant are credited to his or her account under this Plan and are deposited with the general funds of the Company. No interest accrues on the payroll deductions. All payroll deductions received or held by the Company may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

(e) On each Purchase Date, so long as this Plan remains in effect and provided that the participant has not submitted a signed and completed withdrawal form before that date which notifies the Company that the participant wishes to withdraw from that Offering Period under this Plan and have all payroll deductions accumulated in the account maintained on behalf of the participant as of that date returned to the participant, the Company shall apply the funds then in the participant's account to the purchase of whole shares of Common Stock reserved under the option granted to such participant with respect to the Offering Period to the extent that such option is exercisable on the Purchase Date. The purchase price per share shall be as specified in Section 8 of this Plan. Any cash remaining in a participant's account after such purchase of shares shall be refunded to such participant in cash, without interest; provided, however that any amount remaining in such participant's account on a Purchase Date which is less than the amount necessary to purchase a full share of Common Stock of the Company shall be carried forward, without interest, into the next Purchase Period or Offering Period, as the case may be. In the event that this Plan has been oversubscribed, all funds not used to purchase shares on the Purchase Date shall be returned to the participant, without interest. No Common Stock shall be purchased on a Purchase Date on behalf of any employee whose participation in this Plan has terminated prior to such Purchase Date.

(f) As promptly as practicable after the Purchase Date, the Company shall issue shares for the participant's benefit representing the shares purchased upon exercise of his or her option.

(g) During a participant's lifetime, his or her option to purchase shares hereunder is exercisable only by him or her. The participant will have no interest or voting right in shares covered by his or her option until such option has been exercised.

10.    Limitations on Shares to be Purchased.

(a) The maximum number of shares purchasable by any participant on any one Purchase Date shall not exceed 10,000 shares. Such number shall be subject to adjustments in accordance with Section 14 of this Plan and shall be further subject to other limits as described in Sections 10(b) and 10(c) below.

(b) No participant shall be entitled to purchase stock under this Plan at a rate which, when aggregated with his or her rights to purchase stock under all other employee stock purchase plans of the Company or any Subsidiary, exceeds $25,000 in fair market value, determined as of the Offering Date (or such other limit as may be imposed by the Code) for each calendar year in which the employee participates in this Plan. The Company shall automatically suspend the payroll deductions of any participant as necessary to enforce such limit provided that when the Company automatically resumes such payroll deductions, the Company must apply the rate in effect immediately prior to such suspension.

(c) No more than two hundred percent (200%) of the number of shares determined by using eighty-five percent (85%) of the fair market value of a share of the Company's Common Stock on the Offering Date as the denominator may be purchased by a participant on any single Purchase Date.

(d) If the number of shares to be purchased on a Purchase Date by all employees participating in this Plan exceeds the number of shares then available for issuance under this Plan, then the Company will make a pro rata allocation of the remaining shares in as uniform a manner as shall be reasonably practicable and as the Committee shall determine to be equitable. In such event, the Company shall give written notice of such reduction of the number of shares to be purchased under a participant's option to each participant affected.

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(e) Any payroll deductions accumulated in a participant's account which are not used to purchase stock due to the limitations in this Section 10 shall be returned to the participant as soon as practicable after the end of the applicable Purchase Period, without interest.

11.    Withdrawal.

(a) Each participant may withdraw from an Offering Period under this Plan by signing and delivering to the Company a written notice to that effect on a form provided for such purpose. Such withdrawal may be elected at any time prior to the end of a Purchase Period, or such other time period as specified by the Committee or the Company.

(b) Upon withdrawal from this Plan, the accumulated payroll deductions shall be returned to the withdrawn participant, without interest, and his or her interest in this Plan shall terminate. In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume his or her participation in this Plan during the same Offering Period, but he or she may participate in any Offering Period under this Plan which commences on a date subsequent to such withdrawal by filing a new subscription agreement in the same manner as set forth in Section 6 above for initial participation in this Plan.

12.    Termination of Employment. Termination of a participant's employment for any reason, including retirement, death or the failure of a participant to remain an eligible employee of the Company or of a Participating Subsidiary, immediately terminates his or her participation in this Plan. In such event, the payroll deductions credited to the participant's account will be returned to him or her or, in the case of his or her death, to his or her legal representative, without interest. For purposes of this Section 12, an employee will not be deemed to have terminated employment or failed to remain in the continuous employ of the Company or of a Participating Subsidiary in the case of sick leave, military leave, or any other leave of absence approved by the Board; provided that such leave is for a period of not more than ninety (90) days or reemployment upon the expiration of such leave is guaranteed by contract or statute.

13.    Return of Payroll Deductions. In the event a participant's interest in this Plan is terminated by withdrawal, termination of employment or otherwise, or in the event this Plan is terminated by the Board, the Company shall deliver to the participant all payroll deductions credited to such participant's account. No interest shall accrue on the payroll deductions of a participant in this Plan.

14.    Capital Changes. Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each option under this Plan which has not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under this Plan but have not yet been placed under option (collectively, the “Reserves”), as well as the price per share of Common Stock covered by each option under this Plan which has not yet been exercised and the maximum number of shares of Common Stock purchasable per participant on any one Purchase Date, shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding shares of Common Stock of the Company resulting from a stock split or the payment of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number of issued and outstanding shares of Common Stock effected without receipt of any consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration”. Such adjustment shall be made by the Committee, whose determination shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option.

In the event of the proposed dissolution or liquidation of the Company, the Offering Period will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Committee. The Committee may, in the exercise of its sole discretion in such instances, declare that this Plan shall terminate as of a date fixed by the Committee and give each participant the right to purchase shares under this Plan prior to such termination. In the event of (i) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the options under this Plan are assumed, converted or replaced by the successor corporation, which assumption will be binding on all participants), (ii) a merger in which the Company is the surviving corporation but after which the stockholders of the Company immediately prior to such merger (other than any stockholder that merges, or which owns or controls another corporation that merges, with the Company in such merger) cease to own their shares or other equity interest in the Company, (iii) the sale of all or substantially all of the assets of the Company or (iv) the acquisition, sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or similar transaction, the Plan will continue with regard to Offering Periods that commenced prior to the closing of the proposed transaction and shares will be purchased based on the Fair Market Value of the surviving corporation’s stock on each Purchase Date, unless otherwise provided by the Committee.

The Committee may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of shares of its outstanding Common Stock, or in the event of the Company being consolidated with or merged into any other corporation.

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15.    Nonassignability. Neither payroll deductions credited to a participant's account nor any rights with regard to the exercise of an option or to receive shares under this Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 22 below) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be void and without effect.

16.    Reports. Individual accounts will be maintained for each participant in this Plan. Each participant shall receive promptly after the end of each Purchase Period a report of his or her account setting forth the total payroll deductions accumulated, the number of shares purchased, the per share price thereof and the remaining cash balance, if any, carried forward to the next Purchase Period or Offering Period, as the case may be.

17.    Notice of Disposition. Each participant shall notify the Company in writing if the participant disposes of any of the shares purchased in any Offering Period pursuant to this Plan if such disposition occurs within two (2) years from the Offering Date or within one (1) year from the Purchase Date on which such shares were purchased (the “Notice Period”). The Company may, at any time during the Notice Period, place a legend or legends on any certificate representing shares acquired pursuant to this Plan requesting the Company's transfer agent to notify the Company of any transfer of the shares. The obligation of the participant to provide such notice shall continue notwithstanding the placement of any such legend on the certificates.

18.    No Rights to Continued Employment. Neither this Plan nor the grant of any option hereunder shall confer any right on any employee to remain in the employ of the Company or any Participating Subsidiary, or restrict the right of the Company or any Participating Subsidiary to terminate such employee's employment.

19.    Equal Rights And Privileges. All eligible employees shall have equal rights and privileges with respect to this Plan so that this Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 or any successor provision of the Code and the related regulations. Any provision of this Plan which is inconsistent with Section 423 or any successor provision of the Code shall, without further act or amendment by the Company, the Committee or the Board, be reformed to comply with the requirements of Section 423. This Section 19 shall take precedence over all other provisions in this Plan.

20.    Notices. All notices or other communications by a participant to the Company under or in connection with this Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

21.    Term; Stockholder Approval. This Plan shall be approved by the stockholders of the Company, in any manner permitted by applicable corporate law, within twelve (12) months before or after the date this Plan is adopted by the Board. This Plan shall continue until the earlier to occur of (a) termination of this Plan by the Board (which termination may be effected by the Board at any time), (b) issuance of all of the shares of Common Stock reserved for issuance under this Plan, or (c) the Company’s annual meeting in 2022.

22.    Designation of Beneficiary.

(a) A participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the participant's account under this Plan in the event of such participant's death subsequent to the end of a Purchase Period but prior to delivery to him of such shares and cash. In addition, a participant may file a written designation of a beneficiary who is to receive any cash from the participant's account under this Plan in the event of such participant's death prior to a Purchase Date.

(b) Such designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a participant and in the absence of a beneficiary validly designated under this Plan who is living at the time of such participant's death, the Company shall deliver such shares or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.

23.    Conditions Upon Issuance of Shares; Limitation on Sale of Shares. Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange or automated quotation system upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

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24.    Applicable Law. The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of Delaware.

25.    Amendment or Termination of this Plan. The Board may at any time amend, terminate or extend the term of this Plan, except that any such termination cannot affect options previously granted under this Plan, nor may any amendment make any change in an option previously granted which would adversely affect the right of any participant, nor may any amendment be made without approval of the stockholders of the Company obtained in accordance with Section 21 above within twelve (12) months of the adoption of such amendment (or earlier if required by Section 21) if such amendment would:

(a) increase the number of shares that may be issued under this Plan; or

(b) change the designation of the employees (or class of employees) eligible for participation in this Plan.

Notwithstanding the foregoing, the Board may make such amendments to the Plan as the Board determines to be advisable, if the continuation of the Plan or any Offering Period would result in financial accounting treatment for the Plan that is different from the financial accounting treatment in effect on the date this Plan is adopted by the Board.

6FORM-2012.12.29-EX10.19

EXHIBIT 10.19

August 29, 2012

Mike Slessor

Dear Mike,

 We  welcome the opportunity to offer you a salaried, exempt position with FormFactor, Inc. (the “Company” or “FormFactor”) as a Senior Vice President and General Manager of the SOC business, subject to the completion of the acquisition of Astria Semiconductor Holdings, Inc. and its subsidiaries including MicroProbe, Inc. (collectively, “Astria”) by the Company (the “Acquisition”) pursuant to a merger agreement expected to be executed by the Company and certain other parties thereto (the “Merger Agreement”).  Your starting date will be the closing date of the Acquisition (the “Closing Date”), if you remain employed by Astria until such date.  If the Acquisition is not completed, this offer will be null and void.

You will report to the Chief Executive Officer of FormFactor and will receive an annual salary of $275,000, which will be paid bi-weekly in accordance with, and subject to, the Company’s normal payroll procedures.  Additionally, you will be eligible to participate in a cash incentive plan at an annualized target rate of 60% of your earned annual salary, subject to meeting specified performance objectives.  Regular full-time employees of the Company are eligible to receive certain employee benefits, which may from time to time change at the Company’s discretion. These currently include:

		
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	Medical, Dental and Vision Insurance Benefits

		
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	Short-Term and Long-Term Disability Insurance Coverage

		
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	Group Life Insurance

		
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	Paid Time-Off (or vacation and sick leave, as applicable)

		
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	401k Plan with match 

		
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	Section 125 Flex Spending Plan

		
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	Employee Assistance Program

		
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	Employee Stock Purchase Plan

Employee and dependent contributions are outlined in our Benefit Plan Summary.  Please note that for most purposes under the FormFactor benefit and compensation plans, your service date will be reflected as your hire date at Astria. Prior to the Closing Date, you will receive further information about continuation of Astria benefits and of applicable FormFactor benefits. 

We will recommend that the Company’s Compensation Committee approve the following equity awards, which will be subject to the terms and conditions of the Company’s Equity Incentive Plan and award agreement:

		
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	On or following the Closing Date, a restricted stock unit award for 60,000 Company shares, which will vest in three equal annual installments from the grant date. 

		
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	On or following the Closing Date, a performance-based restricted stock unit award for 30,000 Company shares at target, that will be earned (between 0% and 125% of such target) based on 2013 performance, as set forth on Exhibit A hereto. If earned, the award will be eligible for service-based vesting in an amount equal to 50% of the earned award in the first quarter of 2014 after the Compensation Committee determines whether the 2013 performance criteria were met and 50% on the one-year anniversary of such determination. 

		
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	In addition, at a later date, we expect that the Compensation Committee will grant you a performance-based restricted stock unit award for 50,000 Company shares at target, that will be earned based on 2014 performance, as set forth on Exhibit A hereto. If earned, the award will be eligible for service-based vesting in an amount equal to 50% of the earned award in the first quarter of 2015 after the 

Employment Offer Letter
Mike Slessor
Page 2 of 2

Compensation Committee determines whether the 2014 performance criteria were met and 50% on the one-year anniversary of such determination.

Your agreement to accept this offer is contingent upon your ability to show proof of your legal right to work for the Company in the United States as well as successfully completing a background check required for all new hires.

As a condition of your employment you are required to sign and return to the company our standard Agreement Regarding Employment, Confidential Information, Invention Assignment, and Arbitration (the “Confidentiality Agreement”).  A copy for your signature is enclosed.  We will not be able to commence your employment until we have received a signed copy of this document.  If you accept this offer, please return a signed copy to me, along with your signed Equityholder Non-Compete Agreement.

You should be aware that your employment with the Company is for no specified period and constitutes at-will employment.  As a result, you are free to resign at any time, for any reason or for no reason.  Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause.

By accepting this offer and if the Acquisition is completed, you agree that any existing offer letter or employment agreement between you and Astria, including without limitation the Executive Employment Agreement dated August 6, 2008 (the “Existing Employment Agreement”), will terminate and will be superseded by this offer letter and the Confidentiality Agreement.  

Notwithstanding the foregoing, if, prior to the first anniversary of the Closing Date, you are terminated by the Company without Cause (as defined in the Existing Employment Agreement) or you resign for Good Reason (as defined in the Existing Employment Agreement), then you will be eligible to receive severance benefits equal to six months of your base salary, payable in a lump sum on the 45th day following your “separation from service” (within the meaning of Section 409A of the Code), if you sign and let become effective on or before such 45th day a general release of claims, releasing all claims, known or unknown, that you may have arising out of or in any way related to your employment or termination of employment with the Company, Astria or their affiliates, and if you continue to comply with the Confidentiality Agreement (as defined below) and the Equityholder Non-Compete Agreement that you are executing in connection with the Merger Agreement. The foregoing severance shall be in lieu of any severance provided under any other Company or Astria plan, policy or agreement and shall be reduced by any notice period (or pay in lieu thereof) required by applicable federal or state law.  You acknowledge and agree that this offer by the Company and the closing of the Acquisition do not constitute “Good Reason” under this offer letter or your Existing Employment Agreement.

If you accept this offer and remain employed by Astria until immediately prior to the closing of the Acquisition, we will consent to Astria accelerating your unvested Astria stock options immediately prior to such closing. After the Merger Agreement is signed, you will separately receive further information about the consideration you will receive under the Merger Agreement for your Astria shares and/or vested stock options, as applicable.

You hereby agree that if any payment or benefits under this offer letter or any other agreement with Astria or the Company would be subject to any excise tax pursuant to Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), such payments and/or benefits shall be reduced (to the least extent possible) in order to avoid any “excess parachute payment” under Section 280G(b)(1) of the Code, unless Astria obtains shareholder approval of such payments and/or benefits in compliance with Section 280G of the Code.

As a FormFactor employee you are required to comply at all times with the Company’s various rules, policies and procedures, including those set forth in our Statement of Corporate code of Business Conduct (the “Code”), and our Statement of Policy Regarding Insider Trading (“Policy Statement”).  Copies of these documents are available via the Corporate Governance section of www.FormFactor.com.  Please access www.FormFactor.com and select Investors, Stockholder Information, Corporate Governance.  As a condition of employment you are required to sign and return to the Company the enclosed Acknowledgement relating to the Policy Statement and the Code.  
        
You should understand that, while referenced in this offer letter, the Company rules, policies and procedures are not incorporated by reference into this offer letter, and they can be changed, replaced or withdrawn at any time at the discretion of the Company. 

Employment Offer Letter
Mike Slessor
Page 3 of 3

To indicate your acceptance of the Company’s offer, please sign and date this letter in the space provided below and return it with all other new hire forms in the enclosed envelope.  A duplicate original is enclosed for your records.  This letter, along with the Confidentiality Agreement, set forth the terms of your employment with the Company and supersede any prior representations or agreements, whether written or oral.  This letter may not be modified or amended except by a written agreement, signed by an officer of the Company and by you.  This offer, if not accepted, will expire five (5) days from the offer date.  Please call me if you have any questions.

We look forward to your favorable reply and to a productive, fun and exciting work relationship.  

Sincerely,
                        

Tom St. Dennis
CEO                     
FormFactor, Inc.

	
		
	
	    31st    day of      August     , 2012

ACCEPTED AND AGREEDTO this NAME
Enclosures:
- Agreement Regarding Employment, Confidential Information, Invention Assignment, and Arbitration
- Equityholder Non-Compete Agreement
- Acknowledgements

Exhibit A
Performance RSU Goals

The Performance Goal Multiplier for FY 2013 performance (measured on the current MicroProbe products and their derivatives) if both Revenue and Gross Margin goals are met as follows:

	
					
	Revenue
	Gross Margin
	% PRSUs Earned
	Gross Margin
	% PRSUs Earned

	$115M
	40%
	30%
	43%
	50%

	$120M
	40%
	80%
	43%
	100%

	$125M
	40%
	105%
	43%
	125%

		
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	Below $115M Revenue, or below 40% Gross Margin, results in 0% of the PRSUs being earned.

		
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	If a Revenue goal in the table above is achieved, then for Gross Margin achievement between 40% and 43%, linear interpolation will be used to determine the percentage of PRSUs earned between the amounts set forth in the applicable line item in the table above.

		
	•
	125% is the maximum Multiplier.

The Performance Goal Multiplier for FY 2014 performance (measured on the current MicroProbe products and their derivatives) if both Revenue and Gross Margin goals are met as follows::

	
					
	Revenue
	Gross Margin
	% PRSUs Earned
	Gross Margin
	% PRSUs Earned

	$130M
	40%
	30%
	43%
	50%

	$135M
	40%
	80%
	43%
	100%

	$140M
	40%
	105%
	43%
	125%

		
	•
	Below $130M Revenue, or below 40% Gross Margin, results in 0% of the PRSUs being earned.

		
	•
	If a Revenue goal in the table above is achieved, then for Gross Margin achievement between 40% and 43%, linear interpolation will be used to determine the percentage of PRSUs earned between the amounts set forth in the applicable line item in the table above.

		
	•
	125% is the maximum Multiplier.

EQUITYHOLDER NON-COMPETE AGREEMENT

August 29, 2012

Mike  Slessor

This letter agreement  (this "Agreement")    between  you and Form Factor,  Inc. (the "Acquiror")    is being entered  into in connection  with the Agreement  and Plan of Merger (as may be amended,  the "Merger   Agreement")    dated  on or about  August  31, 2012 among  Astria Semiconductor   Holdings,  Inc. (the "Company"),    Acquiror,  and certain other  parties (the "Merger   Agreement").

You understand  that the Company  will become  a wholly  owned  subsidiary  of Acquiror  (the "Acquisition")    if and when the transactions  contemplated   by the Merger Agreement  are consummated   (the effective  date of the Acquisition,  the "Closing   Date"), and that you are entering  this Agreement  in your capacity  as an equityholder   of the Company  with a key and significant  role with the Company.

In order to induce Acquiror  to enter into the Merger  Agreement,  and to preserve the goodwill  and proprietary   rights of the Company  for Acquiror's   benefit,  you hereby covenant  and agree as follows:

1.      Commencing   on the Effective  Time and continuing  until the first
anniversary  of the Closing  Date, you shall not own, assist or have any interest  in, whether alone  or as a partner,  officer,  director,  employee,  consultant,  agent,  independent
contractor,  stockholder  or equity  owner of any company  or business  organization,   any business  or enterprise  engaged  in the Company's   business  (such business,  together  with any other business  of the Company  reasonably  contemplated   as of the Closing  Date being collectively  referred  to herein  as the "Competitive    Business").    Notwithstanding   the foregoing,  you may own, solely as a passive  investment,  securities  in any corporation  or other business  entity whose  securities  are traded on a national  securities  exchange  so long as you do not beneficially  own, directly  or indirectly,   1% or more of the equity  securities of any such corporation  or business  entity.

2.      If any restriction  set forth in this Agreement   is found by a court to be unenforceable,  then you agree,  and hereby  submit,  to the reduction  and  limitation  of such prohibition  to such area, time  period or other extent  as shall be deemed  enforceable.

3.          You acknowledge   and agree that Acquiror's   remedy  at law for a breach or threatened  breach of paragraph   I above  would be inadequate.    In recognition  of this  fact, in the event of a breach by you thereof,  you agree that, in addition  to Acquiror's   remedy at law, Acquiror  shall be entitled  to obtain equitable  relief  in the form of specific performance,  temporary  restraining  order, temporary  or permanent  injunction  or any
other equitable  remedy  which  may then be available.   Nothing  herein  contained  shall be
construed  as prohibiting  Acquiror  from pursuing  any other remedies  available  to it for such breach or threatened  breach.

4.          This Agreement  may be amended  or altered only  in a writing signed  by you and Acquiror.   This Agreement   shall be construed  and interpreted  in accordance  with the laws of the State ofCalifomia.     In case anyone   or more of the provisions  or parts ofa provision  contained  in this Agreement  shall, for any reason,  be held to be invalid,  illegal or  unenforceable  in any respect,  

such invalidity,  ilIegaJity or unenforceability   shall not affect any other provision  or part of a provision  of this Agreement;  and this Agreement shall, to the fullest extent  permitted  by law, be reformed  and construed  as if such invalid or  illegal or unenforceable   provision,  or part of a provision,  had never  been contained herein,  and such provision  or part reformed  so that it would  be valid,  legal and
enforceable  to the maximum  extent  possible.

5.          This Agreement  may not be assigned  or delegated  by you, but may be assigned  or delegated  by Acquiror  (a) to an affiliate  of Acquiror,  (b) in the event  that Acquiror  shall be merged  with, or consolidated   into, any other corporation,   to the surviving  corporation,  or (c) in the event  that Acquiror  shall sell and transfer  substantially all of its assets to, or shall become  a subsidiary  of, another  entity, to such entity.

If the Merger  Agreement   is terminated  without  consummation   of the Acquisition, this Agreement  will be null and void.

Please  sign and date this Agreement  below and return  it to me.

Sincerely,

FormFactor,  Inc.

By:__Tom St. Dennis___
Name: Tom St. Dennis
Title: CEO

I agree to the terms and conditions in this Agreement.
Date: 8/31/12

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