Long-Term Incentive Program
Establishment: The Compensation Committee of Cymer’s Board of Directors originally adopted the Long-
Term Incentive Program on October 16, 2007 (“LTIP”). The following is a summary of the terms of the LTIP,
as amended effective January 1, 2009.
Eligibility: Director-level employees and senior Individual Contributor employees and above that are employed
by Cymer or its subsidiaries are eligible to participate in the LTIP. Employees hired or promoted to an eligible
position within a fiscal year will be eligible to participate in the LTIP for that fiscal year and receive a full award.
Those employees first hired or promoted to an eligible position on or after October 1st of a fiscal year will not be
eligible to participate in the LTIP for the immediately following fiscal year.
Award Targets: Equity awards will be granted under Cymer’s Amended And Restated 2005 Equity Incentive
Plan or any successor equity incentive plan (“Incentive Plan”) and may include any of the following equity
vehicles: performance-based vesting restricted stock units (“PRSUs”), restricted stock units (“RSUs”), stock
options, and/or any other equity awards permitted under the Incentive Plan. All potential equity awards granted
under the LTIP will be based on a target dollar amount which is benchmarked annually against similarly-sized
companies within our industry. This target dollar award is then converted into equity awards by dividing an
average fair value of the equity vehicle into the target dollar award to determine the size of the equity award (the
“equity guideline”). The equity guideline is tied to the position level held at the time of the grant and is expressed
as a number of shares subject to the equity awards (i.e., participants at the same position level are eligible to
receive similar-sized equity awards).
PRSU Performance Measures: The number of shares subject to any PRSU awards that will vest and bec