Performance Share Unit Award Agreement
Exhibit
10.2
KULICKE
AND XXXXX INDUSTRIES, INC.
2009
EQUITY PLAN
This
Performance Share Unit Award Agreement (the “Agreement”) is between Kulicke and
Xxxxx Industries, Inc. (the “Company”) and Xxxxxxx X. Xxxxxx (the “Participant”)
pursuant to the Kulicke and Xxxxx 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.
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.
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).
KULICKE
AND XXXXX INDUSTRIES, INC.
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|
By:
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/s/
Xxxxx
X. Xxxxxxxx
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Name: Xxxxx
X. Xxxxxxxx
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Title: VP
& General Counsel
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By:
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/s/ Xxxxxxx X. Xxxxxx
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Participant
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Date:
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January 25,
2010
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Exhibit
10.2
Appendix
A

Kulicke
& Xxxxx 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 & Xxxxx Industries 2009 Equity Plan.
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
xxxxx xxxx 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
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National
Semiconductor Corporation
|
|
Applied
Materials, Inc
|
Novellus
Systems
|
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Advanced
Micro Devices, Inc
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SanDisk
Corporation
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|
Broadcom
Corporation
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STMicroelectronics
N.V.
|
|
Intel
Corporation
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Teradyne
|
|
KLA-Tencor
Corporation
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Taiwan
Semiconductor Manufacturing Co.
|
|
Linear
Technology Corporation
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Texas
Instruments, Inc
|
|
Marvell
Technology Inc
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MEMC
Electronic Materials
|
|
Micron
Technology Inc
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|
Xilinx,
Inc
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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.
|
|
·
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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.
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|
·
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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.
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.
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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 | % |
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