<DOCUMENT>
<TYPE>EX-10.(XXVI)
<SEQUENCE>11
<FILENAME>w55854ex10-xxvi.txt
<DESCRIPTION>AMENDMENT NO.1 TO COMPANY'S EXEC. DEFER COMP. PLAN
<TEXT>
<PAGE>
                                                                EXHIBIT 10(xxvi)

                                AMENDMENT NO. 1
                                     TO THE
                         KULICKE & SOFFA INDUSTRIES NC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN


      WHEREAS, Kulicke & Soffa Industries Inc. (the "Company") maintains the
Kulicke & Soffa Industries, Inc. Executive Deferred Compensation Plan (the
"Plan") as amended and restated effective October 1, 1999 for the benefit of its
eligible employees; and

      WHEREAS, the Company desires to amend the Plan, with the consent of the
participants therein, to revise the definition of "Special Circumstance":

      NOW THEREFORE, effective August 1, 2001, section 1.24 of the Plan is
hereby amended to read as follows:

            1.24 Special Circumstance means the reporting by K&S of consolidated
      net losses equal to or in excess of $100,000,000, over a measuring period
      not exceeding two fiscal years of K&S (beginning with a fiscal year in
      which a loss for the year is reported). A Special Circumstance shall be
      deemed to occur on the date on which K&S makes an announcement of
      quarterly or annual earnings showing consolidated net losses, which
      together with losses reported previously during the measuring period,
      equal or exceed such $100,000,000 amount.

      IN WITNESS WHEREOF, the Company has caused this Amendment No. 1 to be
      executed by its duly authorized officers this 1st day of August 2001.

[CORPORATE SEAL]                          KULICKE & SOFFA INDUSTRIES INC.



Attest:                                   By:
       -------------------------             -----------------------------------


</TEXT>
</DOCUMENT>
