SEC Contract Filing

Filing Date: 2017-04-28

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>cy17executiveincentiveplan.htm
<DESCRIPTION>EXHIBIT 10.1
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<div><a name="s0CB162D461C5BEEBE8D6B0C6C3CD8CCC"></a></div><div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;">Exhibit 10.1</font></div><div style="line-height:120%;text-align:center;"><img src="ktlogoa04.jpg" alt="ktlogoa04.jpg" style="height:56px;width:184px;"></div><div style="line-height:120%;text-align:center;font-size:14pt;"><font style="font-family:Arial;font-size:14pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:14pt;"><font style="font-family:Arial;font-size:14pt;font-weight:bold;">CY17 EXECUTIVE INCENTIVE PLAN</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">(Annual Executive Bonus)</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;">Plan Summary</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;">This KLA-Tencor Executive Incentive Plan (the &#8220;Plan&#8221;) is intended to motivate senior executives to achieve short-term and long-term corporate objectives by providing a competitive bonus for target performance and potential upside for outstanding performance. </font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;">Plan Period</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;">This Plan is effective for the calendar year period from January 1, 2017 through December 31, 2017 (the &#8220;Plan Period&#8221;). Newly eligible employees (e.g., employees promoted to an incentive-eligible position for the first time or a new hire) must be in an eligible position on or before October 1, 2017 as recorded in the HR system in order to qualify for participation in this Plan Period.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;">Eligible Positions</font><font style="font-family:inherit;font-size:10pt;">&#32;<br></font><font style="font-family:Arial;font-size:11pt;">The Company&#8217;s Chief Executive Officer (&#8220;CEO&#8221;) and employees holding a position at the X02 level and above (collectively, with the CEO, &#8220;Executives&#8221;) are eligible to participate in the Plan.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;">Program Payments</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;">Bonus payments, based on performance during the Plan Period, will be paid within 90 days following December 31, 2017. Bonus calculations are based on paid base salary for the applicable Plan Period. Paid base salary includes base salary and seasonal bonuses paid in some countries if the seasonal bonus is considered a component of the employee&#8217;s annual salary. Paid base salary does not include relocation allowances and reimbursements, tuition reimbursements, car/transportation allowances, expatriate allowances, commissions, long-term disability payments, or bonuses paid during the Plan Period. A participant must be a regular, active employee of the Company on the date of the payout in order to receive payment. Employees who are promoted or hired into an eligible position during the Plan Period (on or before October 1, 2017) will have their payouts calculated on paid salary from the effective date of the promotion or hire, as recorded in the HR system. If an employee&#8217;s target bonus changes during the year, the payout will be prorated.</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;">Target Bonus</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;">A target bonus is established as a percent of base salary for each Plan participant.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;">Funding Threshold</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;">Total available funding for the Plan will be determined by performance against a threshold level as measured by Balanced Scorecard and Operating Margin (&#8220;OM&#8221;)* performance for the Plan Period. The Plan will be fully