EXECUTIVE INCENTIVE PLAN (EIP)
Thoratec’s Executive Incentive Plan, hereinafter referred to as EIP is intended to reward executive
personnel who significantly impact and influence Thoratec’s productivity in proportion to their
accomplishment of specified objectives.
The purpose of the plan is to ensure maximum return to Thoratec by encouraging greater initiative,
resourcefulness, teamwork and efficiency on the part of senior management whose performance and
responsibilities directly affect company profits.
Awarding of the bonus will be based on accomplishing a set of annual objectives, determined by the Chief
Executive Officer (“CEO”) and the Board of Directors, typically at the beginning of the year. Bonus
determinations and payouts will take place after the financial statements have been prepared for the fiscal
II. Determination Of The Fund
The availability of, and participants in, the fund will be set by the CEO and approved by the Board of
Directors as part of the annual budgeting process.
III. Effective Date
The effective date of this program is January 1, 2006, the beginning of the plan year, and will continue in
effect until December 30, 2006, or until terminated or amended by the Board of Directors. This plan
supersedes all prior EIP plans.
Participation in the plan is limited to Officers and others in comparable levels of responsibility who have a
direct and significant influence on Thoratec’s growth and profitability. Employees must be regular and not
eligible for any other Thoratec commission, bonus or incentive plan in order to be eligible to participate in
Participating employees will be determined at the beginning of the fiscal year, or at such time during the
Fiscal Year that an employee achieves an eligible position. Employees will be notified of their eligibility and