Document:

Unassociated Document

     

    Exhibit
10.2         

     

    KULICKE
AND SOFFA INDUSTRIES, INC.

    2009
EQUITY PLAN

    

    Performance Share Unit Award
Agreement

    

    This
Performance Share Unit Award Agreement (the “Agreement”) is between Kulicke and
Soffa Industries, Inc. (the “Company”) and Michael J. Morris (the “Participant”)
pursuant to the Kulicke and Soffa Industries, Inc. 2009 Equity Plan (the
“Plan”).  Capitalized terms that are not defined herein shall have the
same meanings given to such terms in the Plan.

    

    WHEREAS,
on October 29, 2009 the Committee granted to the Participant Performance Share
Units in accordance with the provisions of the Plan, a copy of which is attached
hereto; and

    

    WHEREAS,
the Participant and the Company desire to enter into this Agreement to evidence
and confirm the grant of such Performance Share Units on October 29, 2009 on the
terms and conditions set forth herein.

    

    NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and
for other good and valuable consideration, the legal sufficiency of which is
hereby acknowledged, the parties hereto, intending to be legally bound hereby,
agree as follows:

    

    1.           Grant of Performance Share
Units.  The Company granted to the Participant an Award of
25,000 Performance Share Units on October 29, 2009.  Upon fulfillment
of the requirements set forth below, the Participant shall have the right to
receive one share of Common Stock of the Company (“Share”) for each earned
Performance Share Unit.  This grant is in all respects limited and
conditioned as hereinafter provided, and is subject in all respects to the terms
and conditions of the Plan now in effect and as it may be amended from time to
time (but only to the extent that such amendments apply to outstanding grants of
Performance Share Units).  Such terms and conditions are incorporated
herein by reference, made a part hereof, and shall control in the event of any
conflict with any other terms of this Agreement.

     

    2.           Performance Share Unit
Vesting.  The performance period for this Award shall commence
on October 1, 2009 and shall end on September 30, 2012.  The Award
shall be subject to performance vesting requirements based upon the achievement
of Performance Goals as set forth in Appendix A to this Agreement.

     

    3.           Payment of Earned
Performance Share Units.  For each earned Performance Share
Unit, one Share shall be delivered to the Participant during the period from
October 1 to December 15 following the end of the performance period,
except as otherwise provided herein.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.           Termination of
Service. Entitlement to the Award is also subject to the Participant
remaining continuously employed through the last day of the performance
period.  Notwithstanding the foregoing, if the Participant terminates
employment during the performance period due to Retirement, Disability, death,
involuntary termination without Cause, or resignation under circumstances
entitling Participant to severance payments under the letter agreement between
the Company and Participant dated September 24, 2009 (copy attached), the
Participant (or in the event of death, the Participant’s beneficiary) shall be
entitled to a pro rata portion of the Award the Participant would otherwise have
earned based on the actual achievement of the Performance Goals as determined at
the end of the performance period had he or she remained employed to the end of
the performance period. The pro rata portion will be calculated by multiplying
the number of Performance Share Units by a fraction, the numerator of which is
the number of full vesting months of the Participant’s employment in the
performance period and the denominator of which is
thirty-six.  Vesting months are measured from the first day of the
performance period to the corresponding day of each succeeding
month.  If the Participant terminates employment with the Company and
Related Corporations for any other reason, all unvested Performance Share Units
at the time of such termination of employment shall be forfeited.

     

    5.           Adjustment in
Capitalization.  In the event any stock dividend, stock split,
or similar change in the capitalization of the Company affects the number of
issued Shares such that an adjustment is required in order to preserve, or to
prevent the enlargement of, the benefits or potential benefits intended to be
made available under this Award, then the number of Performance Share Units
shall be proportionately adjusted as provided under the terms of the
Plan.  Unless the Committee determines otherwise, the number of
Performance Share Units subject to this Award shall always be a whole
number.

     

    6.           Certain Corporate
Transactions.  In the event of a corporate transaction (as, for
example, a merger, consolidation, acquisition of property or stock, separation,
reorganization, or liquidation), each outstanding Award shall be assumed by the
surviving or successor entity; provided, however, that in the event of a
proposed corporate transaction, the Committee may terminate all or a portion of
any outstanding Award, if it determines that such termination is in the best
interests of the Company.

     

    If the Participant will, following the
corporate transaction, be employed by or otherwise providing services to an
entity which is a surviving or acquiring entity in such transaction or an
affiliate of such an entity, the Committee may, in lieu of the action described
above with respect to outstanding Awards, arrange to have such surviving or
acquiring entity or affiliate grant to the Participant a replacement award
which, in the judgment of the Committee, is substantially equivalent to the
Award.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.           Change in
Control.  Notwithstanding any other provisions of this
Agreement, in the event a Change in Control (as defined in the Plan) occurs and
the surviving or successor entity does not agree to assume the Performance Share
Unit Award, the performance requirements under any outstanding Performance Share
Units are waived and the Participant will vest in such Units if he or she is
employed on the last day of the performance period.  A cash payment
will be made as if “target” performance had been attained based on the value of
Shares on the date of the Change in Control.  Such payment shall be
made during the period from January 1 to March 15 following the end of
the performance period.  If the surviving or successor entity agrees
to assume the outstanding Performance Share Unit Award and the Participant is
terminated without Cause (as defined in the Plan) prior to the twenty-four (24)
month anniversary of the Change in Control, the Participant shall be entitled to
a pro rata portion of the Award the Participant would otherwise have earned
based on the actual achievement of the Performance Goals as determined at the
end of the performance period had he or she remained employed to the end of the
performance period. The pro rata portion will be calculated by multiplying the
number of Performance Share Units by a fraction, the numerator of which is the
number of full vesting months of the Participant’s employment in the performance
period and the denominator of which is thirty-six.  Vesting months are
measured from the first day of the performance period to the corresponding day
of each succeeding month.

     

    8.           Restrictions on
Transfer.  Performance Share Units may not be sold, assigned,
hypothecated, pledged or otherwise transferred or encumbered in any manner
except by will or the laws of descent and distribution.

     

    9.           Withholding of
Taxes.  The obligation of the Company to deliver Shares shall
be subject to applicable Federal, state and local tax withholding
requirements.  The Participant, subject to the provisions of the Plan
and the Withholding Rules may satisfy the withholding tax, in whole or in part,
by electing to have the Company withhold Shares (or by returning previously
acquired Shares to the Company).  Such election must be made in
compliance with and subject to the Withholding Rules, and the Company may limit
the number of Shares withheld to satisfy the minimum tax withholding
requirements to the extent necessary to avoid adverse accounting
consequences.

     

    10.         No Rights as a
Shareholder.  Until Shares are issued, if at all, in
satisfaction of the Company’s obligations under this Award, in the time and
manner specified above, the Participant shall have no rights as a
shareholder.

     

    11.         No Right to Continued
Employment.  Neither the execution and delivery hereof nor the
granting of the Award shall constitute or be evidence of any agreement or
understanding, express or implied, on the part of the Company or any of its
Related Corporations to employ or continue the employment of the Participant for
any period.

     

    12.         Governing
Law.  The Award and the legal relations between the parties
shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania (without reference to the principles of conflicts
of law).

     

    13.         Signature in
Counterpart.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signature
thereto and hereto were upon the same instrument.

     

    14.         Binding Effect;
Benefits. This Agreement shall be binding upon and inure to the benefit
of the Company and the Participant and their respective successors and permitted
assigns.  Nothing in this Agreement, express or implied, is intended
or shall be construed to give any person other than the Company or the
Participant or their respective successors or assigns any legal or equitable
right, remedy or claim under or in respect of any agreement or any provision
contained herein.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    15.         Amendment.  This
Agreement may not be altered, modified or amended except by a written instrument
signed by the Company and the Participant.

     

    16.         Sections and Other
Headings.  The section and other headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement.

     

    IN WITNESS WHEREOF, the Company, by its
duly authorized officer, and the Participant has executed this Agreement in
duplicate as of the day and year first above written.

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                KULICKE
      AND SOFFA INDUSTRIES, INC.

                              
	 
      	 
      
	
                                By:

                              	
                                /s/
      David
      J. Anderson

                              
	
                                Name:    David
      J. Anderson

                              
	
                                Title:      VP
      & General Counsel

                              
	 
      	 
      
	
                                By:

                              	
                                /s/ Michael J. Morris

                              
	 
      	
                                    
      Participant

                              
	
                                Date: 

                              	
                                January 25,
2010

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      Exhibit
10.2         

       

    

    Appendix
A

    

    

    Kulicke
& Soffa Industries

    Performance
Share Plan

    October
2009

    

    The
Management Development and Compensation Committee of the Board of Directors has
established the following Performance Share Plan terms for the 2009 Performance
Share grants.  All Performance Share Award grants are made pursuant to
the Kulicke & Soffa Industries 2009 Equity Plan.

    

    Performance
Metric:  Relative Total Shareholder Return

    Performance
for the purposes of determining the vesting of the performance share awards will
be based on Relative Total Shareholder Return (TSR).  Relative TSR
measures the K&S share price movement over a performance period relative to
the share price movement of peer companies.

    

    TSR =
End of Period Share
Price – Beginning of Period Share Price + Dividend

    Beginning
of Period Share Price

    

    2009
Performance Share Awards

    The terms
of the grant are stated below:

    

    
      
        	
                Grant
      Date

              	 
      	
                October
      29, 2009

              
	
                Performance
      Period

              	 
      	
                October
      1, 2009 to September 30, 2012

              
	
                Vesting

              	 
      	
                3-year
      cliff vest on September 30, 2012

              
	
                Peer
      Companies

              	 
      	
                Philadelphia
      Semiconductor Index (SOXX) companies at grant

              
	
                Target
      Performance

              	 
      	
                Median
      of the Peer Companies

              
	
                Payout
      Range

              	 
      	
                0%
      to 200% of Target Performance

              
	
                Stock
      Averaging Period

              	
                  

              	
                90
      calendar days

              

      

    

    

    Peer
Companies

    The
companies of the Philadelphia Semiconductor (SOXX) Index as of the Grant Date
will comprise the Peer Companies for the determination of the Relative TSR
results of K&S at Vesting.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                Altera
      Corporation

              	 
      	
                National
      Semiconductor Corporation

              
	
                Applied
      Materials, Inc

              	 
      	
                Novellus
      Systems

              
	
                Advanced
      Micro Devices, Inc

              	 
      	
                SanDisk
      Corporation

              
	
                Broadcom
      Corporation

              	 
      	
                STMicroelectronics
      N.V.

              
	
                Intel
      Corporation

              	 
      	
                Teradyne

              
	
                KLA-Tencor
      Corporation

              	 
      	
                Taiwan
      Semiconductor Manufacturing Co.

              
	
                Linear
      Technology Corporation

              	 
      	
                Texas
      Instruments, Inc

              
	
                Marvell
      Technology Inc

              	 
      	
                MEMC
      Electronic Materials

              
	
                Micron
      Technology Inc

              	
                  

              	
                Xilinx,
      Inc

              

      

    

    

    The Peer
Companies may change over the Performance Period as follows:

    
      	
               
      

            	
              ·

            	
              In
      the event of a merger, acquisition or business combination transaction of
      a Peer Company with or by another Peer Company, the surviving entity will
      remain a Peer Company, without adjustment to its financial or market
      structure.

            

    

    
      	
               
      

            	
              ·

            	
              In
      the event of a merger of a Peer Company with an entity that is not a Peer
      Company, or the acquisition or business combination transaction by or with
      a member of the peer group, or with an entity that is not a Peer Company,
      in each case, where the Peer Company is the surviving entity and remains
      publicly traded, the surviving entity will remain a Peer
      Company.

            

    

    
      	
               
      

            	
              ·

            	
              In
      the event of a merger or acquisition or business combination transaction
      of a Peer Company by or with an entity that is not a Peer Company, a
      ‘going private’ transaction involving a Peer Company or the liquidation of
      a Peer Company, where the Peer Company is not a surviving entity or is
      otherwise no longer publicly traded, the company shall no longer be a Peer
      Company.

            

    

    

    Changes
to the companies comprising the SOXX Index over the Performance Period will not
change the Peer Companies for the 2009 Performance Share Awards.

    

    Target
Performance

    TSR for
each of the Peer Companies is calculated and ranked highest to
lowest.  The Median TSR performance of the Peer Companies is the TSR
at which half the Peer Companies’ TSR results are below and half the Peer
Companies’ TSR results are above.

    

    Payout
Range

    Grants of
Performance Share Awards will be made at the Target Performance amount defined
as the Median performance of the Peer Companies.  The amount vested at
Vesting will range from 0% to 200% of the Target Performance amount depending
upon the final positioning of KLIC’s TSR to the median of the Peer Companies at
the end of the Performance Period.

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    The
payout scale below shows the Award vesting percentage at percentile performance
points from <25th to
99th
at 5 percentile point increments.  Final Vesting of Performance Share
Awards will be expressed as a full percentage point ranging from 0% to
200%.

    

    
      
        
          
            
              	
                      Percentile Performance

                    	 	
                      Payout

                    	 
	
                      99th

                    	 	 	200	%
	
                      95th

                    	 	 	190	%
	
                      90th

                    	 	 	180	%
	
                      85th

                    	 	 	170	%
	
                      80th

                    	 	 	160	%
	
                      75th

                    	 	 	150	%
	
                      70th

                    	 	 	140	%
	
                      65th

                    	 	 	130	%
	
                      60th

                    	 	 	120	%
	
                      55th

                    	 	 	110	%
	
                      Median 50%

                    	 	 	100	%
	
                      45th

                    	 	 	90	%
	
                      40th

                    	 	 	80	%
	
                      35th

                    	 	 	70	%
	
                      30th

                    	 	 	60	%
	
                      25th

                    	 	 	50	%
	
                      <25th

                    	 	 	0	%

            

          

        

      

    

    
      
         

      

      
        - 3
-Unassociated Document

    Exhibit
10.3

    KULICKE
AND SOFFA INDUSTRIES, INC.

    2009
EQUITY PLAN

    

    Performance Share Unit Award
Agreement

    

    This
Performance Share Unit Award Agreement (the “Agreement”) between Kulicke and
Soffa Industries, Inc. (the “Company”) and Christian Rheault (the “Participant”)
pursuant to the Kulicke and Soffa Industries, Inc. 2009 Equity Plan (the
“Plan”).  Capitalized terms that are not defined herein shall have the
same meanings given to such terms in the Plan.

    

    WHEREAS,
on October 29, 2009 the Committee granted to the Participant Performance Share
Units in accordance with the provisions of the Plan, a copy of which is attached
hereto; and

    

    WHEREAS,
the Participant and the Company desire to enter into this Agreement to evidence
and confirm the grant of such Performance Share Units on October 29, 2009 on the
terms and conditions set forth herein.

    

    NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and
for other good and valuable consideration, the legal sufficiency of which is
hereby acknowledged, the parties hereto, intending to be legally bound hereby,
agree as follows:

    

    1.           Grant of Performance Share
Units.  The Company granted to the Participant an Award of
33,500 Performance Share Units on October 29, 2009.  Upon fulfillment
of the requirements set forth below, the Participant shall have the right to
receive one share of Common Stock of the Company (“Share”) for each earned
Performance Share Unit.  This grant is in all respects limited and
conditioned as hereinafter provided, and is subject in all respects to the terms
and conditions of the Plan now in effect and as it may be amended from time to
time (but only to the extent that such amendments apply to outstanding grants of
Performance Share Units).  Such terms and conditions are incorporated
herein by reference, made a part hereof, and shall control in the event of any
conflict with any other terms of this Agreement.

     

    2.           Performance Share Unit
Vesting.  The performance period for this Award shall commence
on October 1, 2009 and shall end on September 30, 2012.  The Award
shall be subject to performance vesting requirements based upon the achievement
of Performance Goals as set forth in Appendix A to this Agreement.

     

    3.           Payment of Earned
Performance Share Units.  For each earned Performance Share
Unit, one Share shall be delivered to the Participant during the period from
October 1 to December 15 following the end of the performance period,
except as otherwise provided herein.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.           Termination of
Service. Entitlement to the Award is also subject to the Participant
remaining continuously employed through the last day of the performance
period.  Notwithstanding the foregoing, if the Participant terminates
employment during the performance period due to Retirement, Disability, death or
involuntary termination without Cause, the Participant (or in the event of
death, the Participant’s beneficiary) shall be entitled to a pro rata portion of
the Award the Participant would otherwise have earned based on the actual
achievement of the Performance Goals as determined at the end of the performance
period had he or she remained employed to the end of the performance period. The
pro rata portion will be calculated by multiplying the number of Performance
Share Units by a fraction, the numerator of which is the number of full vesting
months of the Participant’s employment in the performance period and the
denominator of which is thirty-six.  Vesting months are measured from
the first day of the performance period to the corresponding day of each
succeeding month.  If the Participant terminates employment with the
Company and Related Corporations for any other reason, all unvested Performance
Share Units at the time of such termination of employment shall be
forfeited.

     

    5.           Adjustment in
Capitalization.  In the event any stock dividend, stock split,
or similar change in the capitalization of the Company affects the number of
issued Shares such that an adjustment is required in order to preserve, or to
prevent the enlargement of, the benefits or potential benefits intended to be
made available under this Award, then the number of Performance Share Units
shall be proportionately adjusted as provided under the terms of the
Plan.  Unless the Committee determines otherwise, the number of
Performance Share Units subject to this Award shall always be a whole
number.

     

    6.           Certain Corporate
Transactions.  In the event of a corporate transaction (as, for
example, a merger, consolidation, acquisition of property or stock, separation,
reorganization, or liquidation), each outstanding Award shall be assumed by the
surviving or successor entity; provided, however, that in the event of a
proposed corporate transaction, the Committee may terminate all or a portion of
any outstanding Award, if it determines that such termination is in the best
interests of the Company.

     

    If the Participant will, following the
corporate transaction, be employed by or otherwise providing services to an
entity which is a surviving or acquiring entity in such transaction or an
affiliate of such an entity, the Committee may, in lieu of the action described
above with respect to outstanding Awards, arrange to have such surviving or
acquiring entity or affiliate grant to the Participant a replacement award
which, in the judgment of the Committee, is substantially equivalent to the
Award.

    

     
7.           Change in
Control.  Notwithstanding any other provisions of this
Agreement, in the event a Change in Control (as defined in the Plan) occurs and
the surviving or successor entity does not agree to assume the Performance Share
Unit Award, the performance requirements under any outstanding Performance Share
Units are waived and the Participant will vest in such Units if he or she is
employed on the last day of the performance period.  A cash payment
will be made as if “target” performance had been attained based on the value of
Shares on the date of the Change in Control.  Such payment shall be
made during the period from January 1 to March 15 following the end of
the performance period.  If the surviving or successor entity agrees
to assume the outstanding Performance Share Unit Award and the Participant is
terminated without Cause (as defined in the Plan) prior to the twenty-four (24)
month anniversary of the Change in Control, the Participant shall be entitled to
a pro rata portion of the Award the Participant would otherwise have earned
based on the actual achievement of the Performance Goals as determined at the
end of the performance period had he or she remained employed to the end of the
performance period. The pro rata portion will be calculated by multiplying the
number of Performance Share Units by a fraction, the numerator of which is the
number of full vesting months of the Participant’s employment in the performance
period and the denominator of which is thirty-six.  Vesting months are
measured from the first day of the performance period to the corresponding day
of each succeeding month.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8.           Restrictions on
Transfer.  Performance Share Units may not be sold, assigned,
hypothecated, pledged or otherwise transferred or encumbered in any manner
except by will or the laws of descent and distribution.

     

    9.           Withholding of
Taxes.  The obligation of the Company to deliver Shares shall
be subject to applicable Federal, state and local tax withholding
requirements.  The Participant, subject to the provisions of the Plan
and the Withholding Rules may satisfy the withholding tax, in whole or in part,
by electing to have the Company withhold Shares (or by returning previously
acquired Shares to the Company).  Such election must be made in
compliance with and subject to the Withholding Rules, and the Company may limit
the number of Shares withheld to satisfy the minimum tax withholding
requirements to the extent necessary to avoid adverse accounting
consequences.

     

    10.          No Rights as a
Shareholder.  Until Shares are issued, if at all, in
satisfaction of the Company’s obligations under this Award, in the time and
manner specified above, the Participant shall have no rights as a
shareholder.

     

    11.          No Right to Continued
Employment.  Neither the execution and delivery hereof nor the
granting of the Award shall constitute or be evidence of any agreement or
understanding, express or implied, on the part of the Company or any of its
Related Corporations to employ or continue the employment of the Participant for
any period.

     

    12.          Governing
Law.  The Award and the legal relations between the parties
shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania (without reference to the principles of conflicts
of law).

     

    13.          Signature in
Counterpart.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signature
thereto and hereto were upon the same instrument.

     

    14.          Binding Effect;
Benefits. This Agreement shall be binding upon and inure to the benefit
of the Company and the Participant and their respective successors and permitted
assigns.  Nothing in this Agreement, express or implied, is intended
or shall be construed to give any person other than the Company or the
Participant or their respective successors or assigns any legal or equitable
right, remedy or claim under or in respect of any agreement or any provision
contained herein.

     

    15.          Amendment.  This
Agreement may not be altered, modified or amended except by a written instrument
signed by the Company and the Participant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    16.          Sections and Other
Headings.  The section and other headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement.

     

    IN WITNESS WHEREOF, the Company, by its
duly authorized officer, and the Participant has executed this Agreement in
duplicate as of the day and year first above written.

    

    
      
        
          
            	
                    KULICKE
      AND SOFFA INDUSTRIES, INC.

                  
	 
      	 
      
	
                    By:

                  	
                          
                      /s/
      David
      J. Anderson

                    

                  
	
                    Name:

                  	
                       
      David J. Anderson

                  
	
                    Title:

                  	
                       
      VP & General Counsel

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ Christian Rheault

                  
	 
      	
                     Participant

                  
	
                    Date:

                  	
                    January 28,
2010

                  

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.3        

    Appendix
A

    

    

    Kulicke
& Soffa Industries

    Performance
Share Plan

    October
2009

    

    The
Management Development and Compensation Committee of the Board of Directors has
established the following Performance Share Plan terms for the 2009 Performance
Share grants.  All Performance Share Award grants are made pursuant to
the Kulicke & Soffa Industries 2009 Equity Plan.

    

    Performance
Metric:  Relative Total Shareholder Return

    Performance
for the purposes of determining the vesting of the performance share awards will
be based on Relative Total Shareholder Return (TSR).  Relative TSR
measures the K&S share price movement over a performance period relative to
the share price movement of peer companies.

    

    TSR =
End of Period Share
Price – Beginning of Period Share Price + Dividend

    Beginning
of Period Share Price

    

    2009
Performance Share Awards

    The terms
of the grant are stated below:

    

    
      
        
          
            
              
                
                  	
                          Grant
      Date

                        	 
      	
                          October
      29, 2009

                        
	
                          Performance
      Period

                        	 
      	
                          October
      1, 2009 to September 30, 2012

                        
	
                          Vesting

                        	 
      	
                          3-year
      cliff vest on September 30, 2012

                        
	
                          Peer
      Companies

                        	 
      	
                          Philadelphia
      Semiconductor Index (SOXX) companies at grant

                        
	
                          Target
      Performance

                        	 
      	
                          Median
      of the Peer Companies

                        
	
                          Payout
      Range

                        	 
      	
                          0%
      to 200% of Target Performance

                        
	
                          Stock
      Averaging Period

                        	 
      	
                          90
      calendar
days

                        

                

              

            

          

        

      

    

    

    Peer
Companies

    The
companies of the Philadelphia Semiconductor (SOXX) Index as of the Grant Date
will comprise the Peer Companies for the determination of the Relative TSR
results of K&S at Vesting.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    	
                            Altera
      Corporation

                          	 
      	
                            National
      Semiconductor Corporation

                          
	
                            Applied
      Materials, Inc

                          	 
      	
                            Novellus
      Systems

                          
	
                            Advanced
      Micro Devices, Inc

                          	 
      	
                            SanDisk
      Corporation

                          
	
                            Broadcom
      Corporation

                          	 
      	
                            STMicroelectronics
      N.V.

                          
	
                            Intel
      Corporation

                          	 
      	
                            Teradyne

                          
	
                            KLA-Tencor
      Corporation

                          	 
      	
                            Taiwan
      Semiconductor Manufacturing Co.

                          
	
                            Linear
      Technology Corporation

                          	 
      	
                            Texas
      Instruments, Inc

                          
	
                            Marvell
      Technology Inc

                          	 
      	
                            MEMC
      Electronic Materials

                          
	
                            Micron
      Technology Inc

                          	 
      	
                            Xilinx,
      Inc

                          

                  

                

              

            

          

        

      

    

    

    The Peer
Companies may change over the Performance Period as follows:

    
      	
               
      

            	
              ·

            	
              In
      the event of a merger, acquisition or business combination transaction of
      a Peer Company with or by another Peer Company, the surviving entity will
      remain a Peer Company, without adjustment to its financial or market
      structure.

            

    

    
      	
               
      

            	
              ·

            	
              In
      the event of a merger of a Peer Company with an entity that is not a Peer
      Company, or the acquisition or business combination transaction by or with
      a member of the peer group, or with an entity that is not a Peer Company,
      in each case, where the Peer Company is the surviving entity and remains
      publicly traded, the surviving entity will remain a Peer
      Company.

            

    

    
      	
               
      

            	
              ·

            	
              In
      the event of a merger or acquisition or business combination transaction
      of a Peer Company by or with an entity that is not a Peer Company, a
      ‘going private’ transaction involving a Peer Company or the liquidation of
      a Peer Company, where the Peer Company is not a surviving entity or is
      otherwise no longer publicly traded, the company shall no longer be a Peer
      Company.

            

    

    

    Changes
to the companies comprising the SOXX Index over the Performance Period will not
change the Peer Companies for the 2009 Performance Share Awards.

    

    Target
Performance

    TSR for
each of the Peer Companies is calculated and ranked highest to
lowest.  The Median TSR performance of the Peer Companies is the TSR
at which half the Peer Companies’ TSR results are below and half the Peer
Companies’ TSR results are above.

    

    Payout
Range

    Grants of
Performance Share Awards will be made at the Target Performance amount defined
as the Median performance of the Peer Companies.  The amount vested at
Vesting will range from 0% to 200% of the Target Performance amount depending
upon the final positioning of KLIC’s TSR to the median of the Peer Companies at
the end of the Performance Period.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    The
payout scale below shows the Award vesting percentage at percentile performance
points from <25th to
99th
at 5 percentile point increments.  Final Vesting of Performance Share
Awards will be expressed as a full percentage point ranging from 0% to
200%.

    

    
      
        
          
            
              
                
                  
                    
                      	
                              Percentile Performance

                            	 	
                              Payout

                            	 
	
                              99th

                            	     	 	200	%
	
                              95th

                            	 	 	190	%
	
                              90th

                            	 	 	180	%
	
                              85th

                            	 	 	170	%
	
                              80th

                            	 	 	160	%
	
                              75th

                            	 	 	150	%
	
                              70th

                            	 	 	140	%
	
                              65th

                            	 	 	130	%
	
                              60th

                            	 	 	120	%
	
                              55th

                            	 	 	110	%
	
                              Median
      50%

                            	 	 	100	%
	
                              45th

                            	 	 	90	%
	
                              40th

                            	 	 	80	%
	
                              35th

                            	 	 	70	%
	
                              30th

                            	 	 	60	%
	
                              25th

                            	 	 	50	%
	
                              <25th

                            	 	 	0	%

                    

                  

                

              

            

          

        

      

    

    

    
      
         

      

      
        -3-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]