Description of President/COO Bonus Plan: 2001-2003
1. Purpose of the plan : For a period spanning 2 years, to retain Cymer president/COO and to provide
additional incentive to operate within approved quarterly financial budgets while (a) achieving/maintaining market
leadership through the current downturn, (b) executing the Company’s product roadmap, and (c) establishing the
infrastructure necessary to deal with the next anticipated industry upturn. The plan is separate from, and in
addition to, the standard Cymer bonus framework.
2. Time Period : The bonus plan is composed of two contiguous 12 month periods (each a “Bonus Period”), the
first beginning October 1, 2001 and ending September 30, 2002: the second period beginning October 1, 2002
and ending September 30, 2003.
3. Measurement of Performance : Metrics and performance milestones for each Bonus Period are agreed to in
advance by the Chief Executive Officer and the President/COO, subject to approval of the Compensation
Committee of the Company’s Board of Directors. The Chief Executive Officer will meet quarterly with the
President/COO to review achievement of relevant milestones within that quarter. At the Chief Executive
Officer’s discretion, for medium-term milestones, achievement may be reviewed and based on performance over
multiple quarters. Achievement of milestones for each Bonus Period is capped at 100%.
4. Plan Payment : Payment is contingent upon the President/COO’s ongoing employment at Cymer through the
end of each Bonus Period and satisfactory achievement of the relevant milestones. A single payment for each
Bonus Period will be made at the conclusion of such period. The maximum amount payable with respect to each
Bonus Period is $1M.
5. Compensation Committee Review : The Chief Executive Officer shall review the plan’s status with the
Compensation Committee near the conclusion of each Bonus Period and prior to any plan payment, or at any
other time upon the requ