Long-Term Incentive Bonus Program
Establishment: The Compensation Committee of Cymer’s Board of Directors adopted the Long-Term
Incentive Bonus Program on October 16, 2007 (“LTIP”) effective January 1, 2008.
Eligibility: Director-level employees and Director-equivalent Individual Contributor employees and above that
are employed by Cymer or its subsidiaries are eligible to participate in the LTIP.
New Hires, Promotions and Eligibility: Eligible employees first hired or promoted to an eligible position after
January 1st of a fiscal year and on or prior to September 30 th of such fiscal year will not be eligible to receive a
Stock Option under the LTIP for that fiscal year, but such eligible employees will be eligible to receive a pro-
rated target PRSU award under the LTIP for that fiscal year. The PRSU award target amount for such newly
eligible employees will be prorated based on the number of days such person is eligible to participate in the LTIP
during such fiscal year in relation to the total number of days in the fiscal year. The proration factor will be
determined by dividing the number of days during the fiscal year that such person was eligible to participate in the
LTIP by 365 days. Those employees first hired or promoted to an eligible position on or after October 1 st of a
fiscal year will not be eligible to receive any Stock Option or PRSU award under the LITP for that fiscal year.
Bonus Targets: Any potential equity based bonuses paid under the LTIP will be calculated based on a target
dollar amount. This target dollar amount is divided into two (2) equity award components to be granted under
Cymer’s Amended And Restated 2005 Equity Incentive Plan or any successor equity incentive plan (“Incentive
Plan”): 50% in time-based vesting stock options (“Stock Options”) and 50% in performance-based restricted
stock units (“PRSUs”). The Stock Options and PRSUs will be granted on the first trading day of