SEC Contract Filing

Filing Date: 2016-03-31

Document Content:
<DOCUMENT>
<TYPE>EX-10.42
<SEQUENCE>12
<FILENAME>smtc-01312016xex1042.htm
<DESCRIPTION>SEMTECH CORPORATION EXECUTIVE STOCK OWNERSHIP GUIDELINES
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<a name="sC7F4A3D416A6794457B7CA1399B666C9"></a><div></div><br><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">SEMTECH CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">EXECUTIVE STOCK OWNERSHIP GUIDELINES</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Consistent with an emphasis on higher standards of corporate governance, the Compensation Committee of the Board of Directors (the &#8220;Committee&#8221;) of Semtech Corporation, a Delaware corporation (the &#8220;Company&#8221;), believes that the investment community values stock ownership by officers and that, by holding an equity position in the Company, officers demonstrate their commitment to and belief in the long-term profitability of the Company. Accordingly, the Committee believes that ownership of Company stock by officers should be encouraged. </font></div><div style="line-height:120%;padding-top:8px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;text-decoration:underline;">Covered Individuals</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:16px;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">These Executive Stock Ownership Guidelines (these &#8220;Guidelines&#8221;) apply to the Company&#8217;s officers who: (a) are subject to Section 16 of the Securities Exchange Act of 1934 (each, an &#8220;Executive Officer&#8221;) and (b) was an Executive Officer as of August 13, 2014. These Guidelines do not apply to any Executive Officer whose employment with the Company commenced after August 13, 2014.</font></div><div style="line-height:120%;padding-top:8px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;text-decoration:underline;">Chief Executive Officer Target Ownership</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:16px;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The Chief Executive Officer should seek to acquire and maintain a level of ownership of Company common stock that has a fair market value equal to five times the Chief Executive Officer&#8217;s annualized base salary level. The Chief Executive Officer should work toward achieving this level of ownership with the objective of meeting the Guidelines within five years of becoming subject to these Guidelines. Once the Chief Executive Officer has achieved the target level of stock ownership, the Chief Executive Officer should maintain at least that level of ownership for the duration of his or her tenure with the Company. </font></div><div style="line-height:120%;padding-bottom:8px;padding-top:16px;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;text-decoration:underline;">Executive Officer Target Ownership</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:16px;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Each Executive Officer other than the Chief Executive Officer should seek to acquire and maintain a level of ownership of Company common stock that has a fair market value equal to two times the executive&#8217;s annualized base salary level. Each such Executive Officer should work toward achieving this level of ownership with the objective of meeting the Guidelines within five years of becoming subject to these Guidelines. Once the Executive Officer has achieved the target level of stock ownership, the Executive Officer should maintain at least that level of ownership for the duration of his or her tenure with the Company. </font></div><div style="line-height:120%;padding-top:8px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;text-decoration:underline;">Implementation</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">For purposes of determining whether the above ownership target is satisfied, the following sources of stock ownership will be included:</font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:48px;"><font style="font-family:inherit;font-size:12pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">shares of Company common stock purchased by an Executive Officer on the open market or acquired and held upon exercise of stock options and/or after the vesting of any Company restricted stock or similar awards;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:8px;font-f