Common use of Performance Metric Clause in Contracts

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 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 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.

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 29December 8, 2009 Performance Period October 1December 31, 2009 to September June 30, 2012 2011 Vesting 3-year xxxxx Xxxxx xxxx on September June 30, 2012 2011 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.

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 October-December Performance Share Awards The terms of the grant are stated below: Grant Date Various Grant Dates from October 29, 2009 2010 through September 2011 Performance Period October 13, 2009 2010 to September 3028, 2012 2013 Vesting 3-year xxxxx xxxx on September 30, 2012 from Xxxxx Date Peer Companies Philadelphia Semiconductor Index (SOXX) companies at grant 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.Awards made under this plan. 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. 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 interpolated 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%

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 xxxxx cxxxx 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 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.