Incentive Compensation Plan FY2021

The purpose of the Kulicke and Soffa Industries, Inc. (“Company” or “K&S”) Incentive Compensation Plan (“Plan” or “ICP”) is to:

•focus the efforts of Plan participants to achieve financial goals and individual objectives and maximize personal performance consistent with the Company’s business strategy

•provide Plan participants with the opportunity to earn an annual ICP award based on Corporate and Business Unit (“BU”) (if appropriate) financial performance and individual performance

•align the interests of our employees and K&S shareholders by providing awards that are commensurate with business performance

This Plan document is effective beginning fiscal 2021, commencing on October 4, 2020. This Plan document and its attachments constitute the entire ICP and supersede any other oral or written agreements dated prior to the effective date. The Plan year is aligned to the K&S fiscal Plan year.

The Management Development and Compensation Committee (“MDCC”) of the Board of Directors is responsible for reviewing the overall performance and funding of the Company’s incentive plans. Specifically, the MDCC is responsible for:

•determining the criteria and mechanism for funding the Plan

•determining the suspension or reduction of aggregate ICP awards due to current or projected business performance

•determining the primary financial performance metrics

•approving any adjustments to Corporate or BU performance for transition, start-up, or other extraordinary costs and circumstances

•approving the aggregate annual award amounts

•approving all objectives, weightings, targets and payouts to individual Executive Officers

•approving any discretionary adjustments to ICP awards

•delegating routine Plan administration responsibilities to Company management

Company management’s responsibilities include:

•providing summary information and analysis to the MDCC on an annual basis and presenting the aggregate pool for review and approval by the MDCC

•facilitating the collection of financial and individual performance results and award recommendations

•recommending and enforcing eligibility and administration rules, individual ICP target assignments, and the relative performance weightings of Company, BU, and individual performance

•recommending financial performance metrics and funding scales (including threshold, target and maximum performance) for Company and BU awards

•coordinating financial planning and accruals as necessary

•reviewing and verifying all proposed awards before such awards are made

•determining suspension or reduction of non-Executive Officer individual ICP awards due to performance

•counseling the MDCC on the determination of suspension or reduction of aggregate ICP awards due to current or projected business performance

•determining the extent to which internal transfers, promotions, changes in full-or-part-time status and approved leaves of absence impact accruals, targets and actual awards

•interpreting this ICP document and establishing, adopting, or amending any provisions as are necessary for proper administration, consulting where appropriate with the MDCC

Funding of the Plan is based on two metrics: Corporate Net Income (“NI”) and Corporate Operating Margin (“OM”).

The Plan has funding scales for Corporate NI and Corporate OM. Each scale correlates performance results to funding percentages from threshold, to target, to maximum performance. The average of the Corporate NI and Corporate OM funding percentages equals the Corporate Financial Payout which generates the ICP pool. The funding percentages range from zero to 200% of the target according to the Plan funding schedule.

Corporate NI and Corporate OM funding scales are reviewed and approved by the MDCC on an annual basis. Sample funding scales are shown in Appendix 1.

Threshold Performance

Minimum funding for the Plan requires achievement of threshold Corporate NI and Corporate OM performance. If only one of the two thresholds is achieved, funding will be based on the funding scale for the metric that achieved threshold, and only up to 50% of the Plan will be funded. If neither of the two thresholds is achieved, the Plan will not fund and there will not be a payout. Corporate NI and Corporate OM thresholds are reviewed and approved by the MDCC on an annual basis.

To be eligible for payment from the ICP an employee must be:

•classified as regular full-time or regular part-time;

•in a Professional, Management or Executive level position (grade levels P1-P7, M1-M6, E1-E5);

•active on the Company payroll at the start of the fiscal year and

•active on the Company payroll on the last working day of the fiscal year (also see Plan Administration section for new hire or job change eligibility).

Participants in the ICP will not be eligible to participate concurrently in any other Company provided incentive or sales compensation program (i.e. Sales Incentive Plan (“SIP”). Employees in locations with bonus months normally paid in addition to the standard 12-month payroll or with non-Company-wide bonus plans (i.e. production bonus) will not be excluded from the SS Plan because of those situations.

The performance measurement period is the full fiscal year and payout will be based on full fiscal year financial results (defined below) annually.

There are four performance measures to determine a participant’s annual award.

•Corporate Net Income at the close of the fiscal year

•Corporate Operating Margin at the close of the fiscal year

•Business Unit Scorecard at the close of the fiscal year

◦BU Scorecards are set on an annual basis by a Scorecard Committee consisting of the CEO, CFO, and the BU Heads

◦The BU Scorecard metrics consist of financial components (BU Revenue and BU Direct Operating Margin) and non-financial components deemed important to drive sustainable success in the marketplace such as research and development, market share and customer penetration, and quality goals

•Individual Performance based on the employee’s Performance Rating on a scale of 1-5

For participants in Corporate roles, the financial performance measures consist of Corporate NI and Corporate OM, each weighted 50%.

For participants in BU roles, the financial measures consist of Corporate Financial Performance and the BU Scorecard results.

•If a participant’s role involves working with two BUs that participant may have a split BU in which the BU Scorecard result for each will be used. In a split BU one of the BUs must be allocated at least 20% of the full BU component weighting. Allocation of split BUs must be in increments of 10%.

Two performance components are used to calculate awards, the financial component and the individual component. The weightings of each component are based on the participant’s grade level, and whether the participant is in a Corporate or BU position.

Note: For the Executive Leadership Team (“ELT”) the calculation of awards is based on Corporate Financial Performance only.

The ICP Individual Component award pool is calculated as the sum of all participants’ individual ICP target multiplied by the individual component weighting modified by the Corporate Financial Performance. Managers will allocate the individual component for each participant based on the available pool and considering the participant’s individual performance rating.

Participant’s ICP target is based on a percentage of the employee’s annual base salary. Targets are determined for each grade level based on market competitive practice. Targets for the ELT are individually market priced. The ICP target structure is shown in Appendix 2.

Individual awards can range from 0% to 200% of the target incentive (capped at 200% of target incentive).

Corporate NI, Corporate OM and BU Scorecard performance measures are based on actual achievement against targets according to the funding scale.

Corporate Financial Payout is calculated as the average of the Corporate NI payout funding and Corporate OM payout funding. The maximum Corporate Financial Payout is 200%.

Individual Component Payout is modified by the Corporate Financial Payout.

BU Scorecard Payout is modified by the Corporate Financial Payout and the Individual Component Payout.

Sample Calculations are shown in Appendix 3.

All awards will be paid in cash (via check or direct deposit), subject to all tax and withholding under applicable country laws and regulations, and Company policy in effect at the time.

Timing of awards payout is subject to the timing of the MDCC meetings, during which awards are approved, and the timing of payroll processing. Payments (if any) will be made as soon as administratively practicable after approval.

With exception of the ELT, the CEO and Vice President of Human Resources shall have complete discretion concerning the determination of ICP awards under the Plan, and the decision of the CEO shall be final and conclusive. Any disputes regarding ICP eligibility or an award must be communicated in writing to the Vice President of Human Resources within thirty (30) days from the date an ICP award would otherwise have been paid with respect to that fiscal year.

•The Incentive Compensation Plan may be amended, suspended, terminated or reinstated at any time with the approval of the MDCC.

•Participant’s Base Salary will remain the basis for life insurance, accidental death and disability and long and short-term disability and the like.

•As a condition of receiving benefits under the Plan, all Participants agree to respect the confidentiality of K&S’s financial and other business critical information.

•This Plan will be construed in accordance with and governed by the laws of the Commonwealth of Pennsylvania, without reference to principles of conflicts of law, as to all matters, including, but not limited to, matters of validity, construction and performance.

•The Plan shall be administered in accordance with Section 409(A) of the Internal Revenue Code of 1986, as amended (“Code”).

•Participants may not sell, assign, transfer, pledge or encumber any expectation of or right to an award under this Plan and any attempt to do so shall be void.

•K&S is an at-will employer. Participation in the Plan or any enhancement of the Plan does not impact this fact in any way.

•Inclusion in this Plan does not constitute a guarantee of employment or specific earnings.

•Nothing in this Plan shall act as an expressed or implied contract, a guarantee or commitment for an employee to be or to continue to be a Participant in the Plan, to receive payments under the Plan, or to be retained in the employment of K&S.

Award or Incentive Award – the incentive payment made to a participant under this Plan, which is based on the achievement of Corporate, Business Unit and Individual Performance Goals and the participant’s Incentive Target

Base Salary – the annualized rate of base salary compensation paid to a participant

Board of Directors – the Board of Directors of Kulicke and Soffa Industries, Inc.

Business Unit Direct Operating Margin (“BU DOM”) - Direct Operating Profit / Revenue (in %) (Excluding corporate service and shared expense charges)

Company – Kulicke and Soffa Industries, Inc., its subsidiaries, and any successor thereto

Executive Leadership Team (“ELT”) – the executive team of the Company including the CEO, and direct reports to the CEO

Executive Officer – An individual designation by the Kulicke and Soffa Industries, Inc. Board of Directors as an Officer of the Company

Fiscal Year – the business year as defined by finance

Incentive Target – the percentage of a participant’s base salary established as the basis for his or her ICP award. The actual ICP award, if any, may equal, exceed, or fall below the ICP target based on Corporate, Business Unit and Individual performance

Management Development and Compensation Committee (“MDCC”) – the committee of the Board of Directors accountable for aspects of the Plan

Net Income (“NI”) – Revenue less expenses, interest and taxes. The MDCC has the authority to exclude any unusual or extraordinary items from the calculation

Operating Margin (“OM”) - Operating Income / Revenue (in %)

Participant – an employee of Kulicke and Soffa Industries Inc. who is eligible to participate in the Plan

Plan – this Kulicke and Soffa Industries Inc. Incentive Compensation Plan (“ICP”)

Plan Year – the fiscal year of the Company

Reduction in Force – involuntary termination due to a K&S reorganization or cost containment measures

Retirement – termination of a regular full-time or part-time employee who is at least 50 years of age, has at least 3 years of service, and age and service equal at least 60

Sales Incentive Plan (“SIP”) - an incentive plan of the Company, different from this Plan, intended to motivate certain sales employees to achieve defined sales objectives

Success Shares Plan – an incentive plan of the Company, different from this Plan, intended to motivate participants (see Appendix 2) to support Company objectives by sharing in the financial success of the Company

Treatment of eligibility or calculation of award based on changes to a participant’s job or employment status.

In all cases, eligibility for any prorated award is contingent on meeting all other conditions and requirements of the Plan.

*Net Income results are weighted 50% of overall Corporate Performance Measure. Interpolation will be applied between each of the discreet points in the scale.

Net Income target will be reviewed annually

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*Operating Margin % results are weighted 50% of the overall Corporate Financial Performance Measure. Interpolation will be applied between each of the discreet points in the scale.

Operating Margin target will be reviewed annually