Document:

1998 Nonstatutory Stock Option Plan

 Exhibit 10.6 
 NEOMAGIC CORPORATION 
 1998 NONSTATUTORY STOCK OPTION PLAN 
 1. Purposes of the Plan. The purposes of this Nonstatutory Stock Option Plan are: 
 to attract and retain the best available personnel for positions of substantial responsibility, 
 to provide additional incentive to Employees, Directors and Consultants, and 
 to promote the success of the Company’s business. 
 Options granted under the Plan will be Nonstatutory
Stock Options. 
 2. Definitions. As used herein, the following definitions shall apply: 
 (a) “Administrator” means the Board or any of its Committees as shall be administering the Plan, in accordance with Section 4 of the
Plan. 
 (b) “Applicable Laws” means the requirements relating to the administration of stock option plans under U.S. state
corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options are, or will be,
granted under the Plan. 
 (c) “Board” means the Board of Directors of the Company. 
 (d) “Code” means the Internal Revenue Code of 1986, as amended. 
 (e) “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan. 
 (f) “Common Stock” means the Common Stock of the Company. 
 (g) “Company” means NeoMagic Corporation, a Delaware corporation. 
 (h)
“Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such entity. 
 (i) “Director” means a member of the Board. 
 (j) “Disability” means total
and permanent disability as defined in Section 22(e)(3) of the Code. 
 (k) “Employee” means any person, including
Officers, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the

  

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 Company or between the Company, its Parent, any Subsidiary, or any successor. Neither service as a Director nor payment
of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 
 (l) “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
 (m) “Fair Market Value” means, as of any date, the
value of Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted
on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of
Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; 
 (iii) In the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good
faith by the Administrator. 
 (n) “Notice of Grant” means a written or electronic notice evidencing certain terms and
conditions of an individual Option grant. The Notice of Grant is part of the Option Agreement. 
 (o) “Officer” means a
person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (p) “Option” means a nonstatutory stock option granted pursuant to the Plan, that is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder. 
 (q) “Option Agreement” means an agreement between the Company and an Optionee
evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
 (r) “Option Exchange Program” means a program whereby outstanding options are surrendered in exchange for options with a lower exercise price. 
 (s) “Optioned Stock” means the Common Stock subject to an Option. 
 (t)
“Optionee” means the holder of an outstanding Option granted under the Plan. 
  

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 (u) “Parent” means a “parent corporation,” whether now or hereafter existing,
as defined in Section 424(e) of the Code. 
 (v) “Plan” means this 1998 Nonstatutory Stock Option Plan. 
 (w) “Service Provider” means an Employee including an Officer, Consultant or Director. 
 (x) “Share” means a share of the Common Stock, as adjusted in accordance with Section 12 of the Plan. 
 (y) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the
Code. 
 3. Stock Subject to the Plan. Subject to the provisions of Section 12 of the Plan, the maximum
aggregate number of Shares which may be optioned and sold under the Plan is 1,639,955 as adjusted for 1:5 reserves stock split on August 12, 2005. The Shares may be authorized, but unissued, or reacquired Common Stock. 
 If an Option expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the
unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). 
 4. Administration of the Plan. 
 (a) Administration. The Plan shall be administered by (i) the
Board or (ii) a Committee, which committee shall be constituted to satisfy Applicable Laws. 
 (b)
Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its
discretion: 
 (i) to determine the Fair Market Value of the Common Stock; 
 (ii) to select the Service Providers to whom Options may be granted hereunder; 
 (iii) to determine whether and to what extent Options are granted hereunder; 
 (iv) to determine the number of shares of Common Stock to be covered by each Option granted hereunder; 
 (v) to approve forms of agreement for use under the Plan; 
 (vi) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times
when Options may be exercised (which may be based on performance 
  

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 criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any
Option or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 
 (vii) to reduce the exercise price of any Option to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option shall have declined since the date the Option was granted;

 (viii) to institute an Option Exchange Program; 
 (ix) to construe and interpret the terms of the Plan and awards granted pursuant to the Plan; 
 (x) to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 
 (xi) to modify or amend each Option (subject to Section 14(b) of the Plan), including the discretionary authority to extend the post-termination
exercisability period of Options longer than is otherwise provided for in the Plan; 
 (xii) to authorize any person to execute on behalf of
the Company any instrument required to effect the grant of an Option previously granted by the Administrator; 
 (xiii) to determine the
terms and restrictions applicable to Options; 
 (xiv) to allow Optionees to satisfy withholding tax obligations by electing to have the
Company withhold from the Shares to be issued upon exercise of an Option that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date
that the amount of tax to be withheld is to be determined. All elections by an Optionee to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable; and

 (xv) to make all other determinations deemed necessary or advisable for administering the Plan. 
 (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations shall be final
and binding on all Optionees and any other holders of Options. 
 5. Eligibility. Options may be granted to Service Providers except
Officers and Directors; provided, however, that Options may be granted to an Officer in connection with the Officer’s initial employment by the Company. 
 6. Limitation. Neither the Plan nor any Option shall confer upon an Optionee any right with respect to continuing the Optionee’s relationship as a Service Provider with the Company, nor shall they
interfere in any way with the Optionee’s right or the Company’s right to terminate such relationship at any time, with or without cause. 
  

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 7. Term of Plan. The Plan shall become effective upon its adoption by the Board. It
shall continue in effect for ten (10) years, unless sooner terminated under Section 14 of the Plan. 
 8. Term of Option.
The term of each Option shall be stated in the Option Agreement. 
 9. Option Exercise Price and Consideration. 
 (a) Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the
Administrator. 
 (b) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator shall fix the period
within which the Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised. 
 (c) Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment. Such consideration may consist entirely of: 
 (i) cash; 
 (ii) check; 
 (iii) promissory note; 
 (iv) other Shares
which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate
exercise price of the Shares as to which said Option shall be exercised; 
 (v) consideration received by the Company under a cashless
exercise program implemented by the Company in connection with the Plan; 
 (vi) a reduction in the amount of any Company liability to the
Optionee, including any liability attributable to the Optionee’s participation in any Company-sponsored deferred compensation program or arrangement; 
 (vii) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or 
 (viii) any combination of the foregoing methods of payment. 
  

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 10. Exercise of Option. 
 (a) Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder shall be exercisable according to the terms of the Plan
and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. Unless the Administrator provides otherwise, vestings of Options granted hereunder shall be tolled during any unpaid leave of
absence. An Option may not be exercised for a fraction of a Share. 
 An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may
consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the
Optionee, in the name of the Optionee and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends
or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will
be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 12 of the Plan. 
 Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

 (b) Termination of Relationship as a Service Provider. If an Optionee ceases to be a Service Provider, other than upon the
Optionee’s death or Disability, the Optionee may exercise his or her Option, but only within such period of time as is specified in the Option Agreement, and only to the extent that the Option is vested on the date of termination (but in no
event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Optionee’s
termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 (c) Disability of Optionee. If an Optionee ceases to be a Service Provider as a result of the Optionee’s Disability, the Optionee may exercise his or her Option within such period of time as is specified
in the Option Agreement, to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option
Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

  

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 (d) Death of Optionee. If an Optionee dies while a Service Provider, the Option may be
exercised within such period of time as is specified in the Option Agreement (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant), by the Optionee’s estate or by a person who acquires the
right to exercise the Option by bequest or inheritance, but only to the extent that the Option is vested on the date of death. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve
(12) months following the Optionee’s termination. If, at the time of death, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan. The
Option may be exercised by the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the Optionee’s will or the laws of descent or distribution. If the Option is not so
exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 (e) Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares, an Option previously granted based on such terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made. 
 (f) Advance Election to Exercise Option. An Optionee may make an election that will
require an Option, or any portion thereof, to the extent such Option (i) was granted with an exercise price per Share less than the Fair Market Value of a Share on its date of grant, (ii) was unvested as of December 31, 2004 and
(iii) was not exercised prior to December 31, 2005, to be exercised in whole, or in part, pursuant to an election authorized by this Section 10(f). 
 (i) Short Term Deferral Election. An Optionee may make an election to exercise an Option, or any vested portion thereof, by March 15th of the calendar year after the calendar year in which such Option, or portion thereof, vests, subject to ear. 
 (ii) Impact of Termination of Service Provider Status on Elections. Notwithstanding the foregoing, in the event of the Optionee’s status as
a Service Provider terminates prior to the exercise of any Option pursuant to an election made under this Section 10(f), then the Optionee’s election shall be automatically cancelled as of the date of such Optionee’s status as a
Service Provider terminates. 
 (iii) Post-Termination Exercise Period for Options Subjected to Cancelled Elections. Any Option, or
any vested portion thereof, which again becomes exercisable as a result of the automatic cancellation of an exercise election pursuant to Section 10(f)(ii), shall thereafter be exercisable and remain outstanding only to the extent authorized by
its original terms and conditions as of the date of the automatic cancellation of the election, provided, however, that as a condition to making any such election under this Section 10(f), the Optionee must acknowledge and agree that in the
event any such Option, or any vested portion thereof, is not exercised by the Optionee (if applicable under its terms) by March 15th of the year after such Options vest (with respect to any Short Term Deferral Election), the Optionee
understands and acknowledges that such Option, or any vested portion thereof, will be forfeited. 
  

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 (iv) Terms and Conditions of Exercise Elections. Any election made pursuant to this
Section 10(f) must be made in a manner and pursuant to the terms and conditions approved by the Company, and in no event may elections be made after any date authorized by Applicable Law. In order for an election to become effective, the
Optionee must provide the Company with an executed election, on a form approved by the Company, pursuant to the applicable procedures established by the Company. The Company reserves, at any and all times, the right, in the Company’s sole and
absolute discretion, (A) to decline to approve or (B) to terminate or amend any program or procedures for authorizing any Optionee to make such election to exercise Options pursuant to this Section 10(f), provided however, that any
valid election made by an Optionee prior to the date of the Company’s termination or amendment of such a program or procedures shall remain effective. 
 (v) Cancellation of Elections. Notwithstanding any other provision of the Plan or any applicable valid election entered into by any Optionee pursuant to this Section 10(f), in the event that a change in
Applicable Law occurs prior to the exercise of Options under any election, and such change in Applicable Law results in (1) the revocation of the unfavorable tax impacts required by Section 409A of the Code or (2) the postponement or
delay in the effective date of Section 409A of the Code (as determined in the sole discretion of the Company), then with respect to any such Option, all elections made by Optionee’s under this Section 10(f) shall be either
automatically revoked and rescinded to the extent authorized by such change in the Applicable Law or, with the consent of the Optionee amended to comply with such changes in Applicable Law. The determination of the impact of any changes in
Applicable Law to this Section 10(f), and the procedures to implement such changes, shall be made in the sole and absolute discretion of the Company. 
 11. Non-Transferability of Options . Unless determined otherwise by the Administrator, an Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than
by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. If the Administrator makes an Option transferable, such Option shall contain such additional terms and conditions as
the Administrator deems appropriate. 
 12. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset
Sale. 
 (a) Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of shares of
Common Stock covered by each outstanding Option, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Option, as well as the price per share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of 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 Board, whose determination in that respect
shall be final, binding and conclusive. Except as expressly provided herein, no issuance 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. 
  

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 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the
Company, the Administrator shall notify each Optionee as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Optionee to have the right to exercise his or her Option
until ten (10) days prior to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase
option applicable to any Shares purchased upon exercise of an Option shall lapse as to all such Shares, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously
exercised, an Option will terminate immediately prior to the consummation of such proposed action. 
 (c) Merger or Asset Sale. In the
event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding Option shall be assumed or an equivalent option or right substituted by the successor corporation or a
Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the Option, the Optionee shall fully vest in and have the right to exercise the Option as to all of the Optioned
Stock, including Shares as to which it would not otherwise be vested or exercisable. If an Option becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify
the Optionee in writing or electronically that the Option shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Option shall terminate upon the expiration of such period. For the purposes
of this paragraph, the Option shall be considered assumed if, following the merger or sale of assets, the option or right confers the right to purchase or receive, for each Share of Optioned Stock, immediately prior to the merger or sale of assets,
the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation
or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Share of Optioned Stock to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
 13. Date of Grant. The date of grant of an Option shall be, for all purposes, the date on which the Administrator makes the determination granting such Option, or such other later date as is determined by the
Administrator. Notice of the determination shall be provided to each Optionee within a reasonable time after the date of such grant. 
  

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 14. Amendment and Termination of the Plan. 
 (a) Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 
 (b) Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the
rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to options granted under the Plan prior to the date of such termination. 
 15. Conditions Upon Issuance of Shares. 
 (a) Legal Compliance. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such
compliance. 
 (b) Investment Representations. As a condition to the exercise of an Option the Company may require the person
exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the
Company, such a representation is required. 
 16. Inability to Obtain Authority. The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to
issue or sell such Shares as to which such requisite authority shall not have been obtained. 
 17. Reservation of Shares.
The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  

 –10–Severance Agreement and General Release, dated March 31, 2006

 EXHIBIT 10.1 
 SEVERANCE AGREEMENT AND GENERAL RELEASE 
 THIS SEVERANCE AGREEMENT AND GENERAL RELEASE
(“Agreement”) is made and entered into by and between Kulicke and Soffa Industries, Inc. (“Company”) and Oded Lendner (“Executive”). 
 WHEREAS, Company and Executive wish to conclude their relationship amicably and on mutually satisfactory terms and to settle fully and finally all claims, disputes, and potential claims and disputes between them.

 NOW, THEREFORE, in consideration of the mutual promises contained herein and intending to be legally bound, Company and Executive AGREE as
follows: 
 1. Employment End Date. Company’s employment of Executive shall conclude permanently and irrevocably effective
March 31, 2006 (“Employment End Date”). 
 2. Effective Date. This Agreement shall become effective and enforceable,
unless sooner revoked pursuant to Paragraph 3, on the eighth day after Executive signs the Agreement (“Effective Date”). Executive shall cause the Agreement, bearing Executive’s original signature, to be delivered to Company at the
following address: 
 David J. Anderson 
 Vice President and General Counsel 
 Kulicke and Soffa Industries, Inc. 
 2101 Blair Mill Road 
 Willow Grove, Pa 19090 
 3.
Revocation. Executive may revoke this Agreement if he delivers written notice of revocation to Company at the address specified in Paragraph 2 before 5:00 p.m. on the seventh day after he signs it. 
 4. Salary and Vacation Payment. Company will pay Executive in full all salary for work he performed for or on behalf of Company on or before the
Employment End Date and any vacation and personal days that may remain accrued and unused as of the Employment End Date, as reduced by all payroll deductions required by law and/or authorized by Executive, on the first regular payday occurring on or
after the Employment End Date. Company will also pay Executive the amount, if any, that he is or may become entitled to receive under the Officer Incentive Compensation Plan for the quarter ending March 31, 2006, as reduced by all payroll
deductions required by law and/or authorized by Executive including his 401(k) contribution (which, if made by Executive will be accompanied by Company’s matching 410(k) contribution), no later than the date that the other participants receive
payment, if any. 
 5. Severance Payments. Conditioned upon Executive’s signing and not revoking this Agreement, Company shall
pay Executive as severance an amount equivalent to eighteen (18) months of his current base salary in accordance with the following: 

 (a) commencing on the first regular payday occurring after the Effective Date and ending on March 1, 2007,
Company shall pay Executive equal bi-weekly installments equivalent to 1/26th of his current annual base salary of
$307,000, as reduced by all payroll deductions required by law and/or authorized by Executive; and, (b) on March 1, 2007, Company shall pay Executive a lump sum amount, as reduced by all payroll deductions required by law and/or authorized
by Executive, equal to 18 months of his current base salary minus the amounts paid to him on or before March 1, 2007 pursuant to subsection (a) of this Paragraph. Such payments are conditioned upon Executive’s compliance with all
terms and obligations under this Agreement. If Executive breaches any terms of this Agreement, Company’s obligation to make any further severance payments will immediately cease and Executive agrees to return or reimburse Company for all
severance payments previously made to the extent permitted by law, as more fully described in paragraph 15. 
 6. Test-Based Severance
Amount. On January 25, 2006, the Company entered into an asset purchase agreement with SV Probe Pte. Ltd and SV Probe, Inc. (jointly, “SV Probe”) to sell substantially all of the Company’s assets related to the Company’s
wafer test business (“Wafer Business”) for a sale price equal to $15.2 million. Also on January 25, 2006, the Company entered into an asset purchase agreement with Tyler Acquisition Corp., an entity formed and controlled by Investcorp
Technology Ventures II, L.P. and its affiliates (collectively, “Investcorp”) to sell substantially all of the Company’s assets related to the Company’s package test business (“Package Business”) for $17 million.

 The Company shall pay Executive an additional severance payment (“Test-Based Severance Amount”) calculated as
follows: 
 Executive’s annual base salary as of the Employment End Date ($307,000) multiplied by: Aggregate Test Sale Price

                                        
                                        
                                        
             $40 million. 
 By way of example, if the Wafer and Package Businesses are sold
under the Asset Purchase Agreements for an aggregate amount of $32.2 million, Executive shall be entitled to a Test-Based Severance Amount of: 
 $307,000 x 32.2/40 
 = $247,135. 
 Any Test Based Severance Amount will be paid in a lump sum amount, as reduced by all payroll deductions required by law and/or authorized by Executive, on April 15,
2006. The Aggregate Test Sale Price for the above calculation shall only include amounts actually paid by SV Probe and Investcorp or affiliates thereof to the Company or an affiliate of the Company for the Wafer Business and the Package Business,
respectively. Executive is not entitled to any payment based on a sale of the Wafer or Package Businesses to buyers other than SV Probe or Investcorp or affiliates thereof. 
  

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 7. Severance Period; Group Medical and Other Insurance Benefits. The period beginning on the
Employment End Date and ending on February 28, 2007 shall be referred to as the “Severance Period.” 
 Company will continue
to provide Executive’s group medical and dental benefits, on the same terms and conditions that would have applied had he been employed throughout the Severance Period, through February 28, 2007, after which the Company will provide
Executive continuation of such benefits, at Company’s cost until September 30, 2007, pursuant to the Consolidated Omnibus Benefits Restoration Act (“COBRA”) of 1986. Executive’s eligibility for life, disability, accident and
other insurance benefits will cease as of the Employment End Date. 
 8. Stock Options/Grants/Purchase Agreements. Any and all options
to purchase shares of Company granted to Executive under the Employee Stock Option Grants identified on the Optionee Summary Statement attached hereto and incorporated herein as Exhibit A, that have not become vested and exercisable prior to
the Employment End Date, shall become vested and exercisable effective upon the Effective Date. In accordance with the Employee Incentive Stock Option and Non-Qualified Stock Option Plan or Non-Qualified Employee Stock Option Plan, as applicable,
Executive shall have three months from the Employment End Date to exercise vested and exercisable options. Executive will forfeit options not exercised during the said three-month period. 
 9. Company-Issued Laptop Computer. Conditioned upon Executive’s signing and not revoking this Agreement, Company hereby conveys to Executive
his Company issued laptop computer. 
 10. Good and Valuable Consideration. The payments and other consideration promised in
paragraphs 5, 6, 7, 8, and 9 (collectively the “Severance Payment”) are in addition to anything of value Executive is entitled to receive from Company and are good and valuable consideration for this Agreement. 
 11. Transition/Cooperation. As a material condition of this Agreement, Executive agrees to cooperate fully in the transition of his duties and
responsibilities by providing Company all documents, materials, files, and information prepared, received or obtained by Executive at any time during his employment. Further, during the Severance Period Executive agrees to make himself reasonably
available upon reasonable notice to respond by telephone or email to any inquiries or assist by telephone or email in any matters for which he had any direct or indirect responsibility or involvement while employed by Company. Executive further
agrees to assist Company in any pending or future litigation, for which he will be reimbursed for reasonable travel, meal and lodging expenses only, by appearing for depositions, hearings or other proceedings without service of a subpoena by Company
and to provide truthful testimony. Company acknowledges that Executive will be employed by another entity during the Severance Period and shall not interfere with such employment by reason of the foregoing. 
 12. Return of Property. Except and only as specifically provided in Paragraph 9, Executive shall on the Employment End Date deliver to Company any
and all Company property in his possession, custody, or control, including without limitation all, keys 

  

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(office, desk), Company credit cards, equipment, files, records, notes, documents, memoranda, computer diskettes, computer programs, catalogs, customer
lists, and any other data or information in any form whatever, in whatever form or format including any and all copies, summaries or excerpts thereof and will not retain any information that he prepared or acquired from any source while employed
except for his personal payroll, tax and benefit information; provided nothing contained in this Agreement shall restrict Executive from maintaining any such property relating to the Package Business which Investcorp or its assignee acquires from
the Company. 
 13. Mutual General Releases. In consideration of the Severance Payment and intending to be legally bound, Executive
hereby irrevocably and unconditionally releases and forever discharges Company and any and all of its parents, subsidiaries, affiliates, related entities, joint venturers and each of its and their predecessors, successors, insurers, owners,
stockholders, directors, officers, employees, attorneys, and other agents (“Released Parties”) of and from any and all rights, obligations, promises, agreements, debts, losses, controversies, claims, causes of action, liabilities, damages,
and expenses, including without limitation attorneys’ fees and costs, of any nature whatsoever, whether known or unknown, asserted or unasserted, which he ever had, now has, or hereafter may have against the Released Parties, or any of them,
that arose at any time before or upon his signing this Agreement, including without limitation the right to take discovery with respect to any matter, transaction, or occurrence existing or happening at any time before or upon his signing this
Agreement and any and all claims arising under any oral or written Company program, policy or practice, contract, agreement or understanding (except this Agreement), any common-law principle of any jurisdiction, any federal, state or local statute
or ordinance, with all amendments thereto, including without limitation the Civil Rights Acts of 1866, 1871, 1964, and 1991, the Equal Pay Act, the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the Bankruptcy Code,
the Fair Credit Reporting Act, the Worker Adjustment and Retraining Notification Act, the Employee Retirement Income Security Act of 1974, the Americans With Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Health Insurance
Portability and Accountability Act of 1996, the Sarbanes-Oxley Act of 2002, the Pennsylvania Human Relations Act, and any other employee-protective law of any jurisdiction that may apply. The Severance Payment is in lieu of and precludes Executive
receiving any other payment or benefit from Company. Notwithstanding anything to the contrary, this release shall not affect in any manner (i) Executive’s right to enforce any of the terms and conditions of this Agreement, and
(ii) Executive’s rights to indemnification in accordance with Company’s governing documents and policies, and to coverage under Company’s insurance policies, for any and all acts or omissions or alleged acts or omissions during
his period of employment with the Company. 
 In consideration of this Agreement and intending to be legally bound, the Company hereby
irrevocably and unconditionally releases and forever discharges Executive of and from any and all rights, obligations, promises, agreements, debts, losses, controversies, claims, causes of action, liabilities, damages and expenses, including without
limitation attorneys’ fees and costs, of any nature whatsoever, whether known or unknown, asserted or unasserted, which it ever had, now has, or hereafter may have against the Executive that arose at any time before or upon the signing of this
Agreement, including without limitation the right to take discovery with respect to any matter, transaction, or occurrence existing or happening at any 

  

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time before or upon Company’s signing this Agreement and any and all claims arising under any oral or written program, policy or practice, contract,
agreement or understanding (except this Agreement), any common-law principle of any jurisdiction, any federal, state or local statute or ordinance, with all amendments thereto. Notwithstanding anything to the contrary, this release shall not effect
in any manner the Company’s rights to enforce any of the terms and conditions of this Agreement. 
 14. No Right to Relief.
Executive shall have no right to obtain or receive any money damages, injunctive, or other relief through any lawsuit, complaint, action or proceeding commenced or maintained in any court, agency, or other forum by him or by any person or entity
on his behalf with respect to any act, omission, claim or other matter that is covered by Paragraph 13 of this Agreement. 
 15. Tender
Back. Should Executive materially breach any one or more of his obligations contained in this Agreement or file a lawsuit challenging the validity of the release of, or file a lawsuit based upon, any claim released under Paragraph 13 (other than
a federal Age Discrimination in Employment Act claim) Executive shall immediately reimburse Company any and all of the Severance Payment it paid to Executive or on his behalf pursuant to this Agreement, any and all remaining obligations of Company
may have under this Agreement to the Severance Payment shall immediately be fully satisfied and forever discharged, and Executive shall reimburse Company for any and all attorneys’ fees and other costs the Company incurs in such action or
otherwise in enforcing this provision. Should Executive file a lawsuit asserting one or more federal Age Discrimination in Employment Act claims, he shall immediately reimburse Company any and all of the Severance Payment it paid or property it
conveyed to Executive or on his behalf pursuant to this Agreement, except that portion of the Severance Payment attributable to the release of such claims. For the purposes of this Agreement, twenty percent of the consideration provided hereunder is
attributable to the release of any federal Age Discrimination in Employment Act claims. In the event either party takes any legal action to enforce the terms and conditions of this Agreement, the prevailing party in such legal action shall be
reimbursed by the losing party for its costs and expenses either in prosecuting or defending the legal action, as the case may be. 
 16.
Confidentiality. Executive agrees that, except in an action for breach of this Agreement or as reasonably required in connection with the obtaining or performance of further employment, the terms of this Agreement shall not be disclosed or
introduced or used in any future proceedings. Executive agrees that he shall keep the terms of this Agreement STRICTLY CONFIDENTIAL and that he shall not disclose them to any person other than his immediate family and his current or future
attorneys, accountants or tax advisors, each of whom shall agree before any such disclosure to be bound by this confidentiality provision. 
 17. Confidential Information. 
 a. Defined. In the course of his employment with Company, Executive had access to
trade secrets and other confidential information belonging to Company, or its affiliates, including without limitation, their finances, operations, and organization, sales, sales volume, sales methods, sales proposals, customers and prospective
customers, identity of customers and prospective customers, the contents of all rolodexes or other devices for storing 

  

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contact information, whether electronic or otherwise, the identity of customers’ and prospective customers’ decision makers, requirements,
specifications, and preferences of customers and potential customers, terms of customer contracts and/or agreements, Company’s computer programs, designs, software, research reporting-related formulae, and other technology, system
documentation, special hardware, manuals, formulae, products (whether existing, in development, being contemplated, or those Company developed, tested, and decided not to market), processes, methods, equipment, machines, compositions, ideas,
improvements, inventions, other confidential or proprietary information belonging to the Company or its affiliates, or relating to the Company’s affairs, and all similar information from, belonging to, or relating to one or more of the
Company’s customers (collectively “Confidential Information”). Confidential Information shall specifically exclude any such information which is or becomes in the public domain through no action of the Executive, which is generally
known in the industry, which Executive independently obtains without breach of this Paragraph 17, which relates to the Package Business, or which Investcorp or its assignees or affiliates has the legal right to use. 
 b. Non-Disclosure and Non-Use of Confidential Information. Executive acknowledges and agrees that Company’s business is fiercely
competitive; the Confidential Information provides Company an opportunity to obtain an advantage over its competitors who do not know or use it; the Confidential Information derives independent economic value from not being generally known to or
readily ascertainable by proper means by competitors; Company takes all reasonable measures to protect the confidentiality of the Confidential Information; the Confidential Information is the property of one or more of the Company and/or its
customers; and, the misappropriation, use, or disclosure of Confidential Information would constitute a breach of trust and would cause irreparable injury to the Company and/or its affiliates or their customers. Because it is essential to the
protection of Company’s good will and to the maintenance of its competitive position that all of the Confidential Information be kept secret, Executive covenants that he shall hold and safeguard all Confidential Information in trust for the
Company and its successors and assigns and that he shall not at any time appropriate, use, disclose, or permit to be appropriated, used or disclosed by or to any person or entity any Confidential Information. 
 18. Protective Covenants. To protect the Company’s Confidential Information and goodwill, Executive shall not during the Severance Period:

  

	 	a.	Divert from Company the business of any person, business, customer or account for whom or which Executive had direct or indirect responsibility at any time during the final two
years of his employment with Company, except in connection with the Package Business; 

  

	 	b.	 Conduct without Company’s consent any business activity (as an employee, owner or otherwise) competitive with Company in the geographical area or areas for
which Executive had responsibility, either directly or indirectly, at any time during the final two years of Executive’s employment with Company, which the parties acknowledge and agree is worldwide; and provided further the Parties agree that
for purposes of this Paragraph 18, the following 

  

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activities are defined as those competitive with Company: wire ball bonding, stud bumping, bonding wire, blades and bonding tools (caps and wedges) but
specifically excluding the Package Business; or, 

  

	 	c.	Solicit, induce or attempt to persuade any person who is employed by Company on the Employment End Date to terminate his or her employment with Company and/or to accept employment
or similar engagement (e.g., as a consultant or contractor) with any person or entity other than Company, except those employees engaged in the Package Business on the Employment End Date. 

 The Company represents and agrees that the protective covenants set forth in this Agreement constitute the only continuing restrictions applicable to Executive with
respect to the Company. 
 19. Injunctive Relief. Executive acknowledges that money damages will be an inadequate remedy in the event
of an intended, threatened or actual breach of any of Executive’s covenants, including without limitations those in Paragraphs 11, 12, 16, 17, and 18, and that any such breach will cause Company great and irreparable injury and damage. In the
event Executive breaches any of those covenants, Company shall be entitled, without waiving any rights or remedies otherwise available to Company at law or in equity, to preliminary and permanent injunctive and other equitable relief. 
 20. Good Faith Settlement. This Agreement constitutes the good faith compromise and settlement of all claims and potential claims each party has
against any one or more of the other party or the Released Parties and is not and shall not be construed as an admission of any wrongful or unlawful act or that the conclusion of Executive’s employment was in any way wrongful or unlawful.

 21. Knowing and Voluntary Agreement. Executive acknowledges that Company advised him in writing, by this Paragraph and otherwise,
to consult with an attorney before signing this Agreement; that Company provided him with no less than 21 days within which to consider this Agreement before signing it; that Company provided him with no less than seven days within which to revoke
this Agreement after signing it; that Executive carefully read and fully understands all of the provisions and effects of this Agreement; that Executive is entering into this Agreement voluntarily and free of coercion and duress; and that neither
Company nor any of its agents or attorneys made any representations or promises concerning the terms or effects of this Agreement. Executive acknowledges that he has consulted his own tax advisor regarding the Severance Payment and the other terms
of this Agreement. 
 22. Governing Law. This Agreement shall in all respects be interpreted, enforced, and governed under the laws of
the Commonwealth of Pennsylvania, without reference to the principles of conflicts of law otherwise applicable therein. 
 23.
Construction. Each Party to this Agreement had full opportunity to negotiate all terms and language of this Agreement and this Agreement and all of its terms shall be construed as if drawn by both parties and not against either as the
drafter. 
  

 Page 7 of 8 

 24. Entire Agreement. This Agreement sets forth the entire agreement between the parties hereto
and fully supersedes any and all other prior or contemporaneous written or oral contracts, agreements, or understandings between the Parties pertaining to the subject matter hereof. 
 25. Severability. If a court of competent jurisdiction adjudicates any covenant or obligation under this Agreement void or unenforceable, then the
parties intend that the court modify such provision only to the extent necessary to render the covenant or obligation enforceable as modified or, if the covenant or obligation cannot be so modified, the parties intend that the court sever such
covenant or obligation, and that the remainder of this Agreement, and all remaining covenants, obligations and provisions as so modified, shall remain valid, enforceable, and in full force and effect. 
 26. Successors. This Agreement shall be binding upon and inure to the benefit of each Party’s respective successors. Severance payments under
paragraphs 5 and 6 and Executive’s rights under paragraphs 7 and 8 shall be deemed fully earned to the extent there is not a then existing violation of this Agreement by Executive, and shall be assigned to Executive’s Estate, heirs or
legal representatives in the event of Executive’s death or disability prior to payment or performance in full. 
 BY SIGNING THIS AGREEMENT, EACH
PARTY ACKNOWLEDGES THAT HE/IT DOES SO VOLUNTARILY AFTER CAREFULLY READING AND FULLY UNDERSTANDING EACH PROVISION AND ALL OF THE EFFECTS OF THIS AGREEMENT, WHICH INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS AND RESTRICTS FUTURE LEGAL ACTION AGAINST
THE OTHER PARTY AND OTHER RELEASED PARTIES. 
 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties have executed
this Severance Agreement and General Release. 
  

															
		 		 		 		  	KULICKE AND SOFFA INDUSTRIES, INC.
								
	 By: /s/ Oded Lendner
	 		 	 / March 31, 2006
	 		  	By:	  	 /s/ Maurice E. Carson
	 		  	 / March 31, 2006

	Oded Lendner	 		 	/ Date	 		  		  	 Maurice E. Carson
 Chief Financial
Officer
	 		  	 / Date

 EXHIBIT A – STOCK OPTION SCHEDULE 
  

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