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                                     Cymer Inc.

                        Executive Deferred Compensation Plan

1.     STATEMENT OF PURPOSE

       The purpose of the Cymer Inc. Executive Deferred Compensation Plan (the
       "Plan") is to aid Cymer Inc. and its subsidiaries in attracting and
       retaining key employees by providing a non-qualified compensation
       deferral vehicle.

2.     DEFINITIONS

       2.01   BENEFICIARY - "Beneficiary" means the person or persons designated
              as such in accordance with Section 8.

       2.02   BOARD OF DIRECTORS - "Board of Directors" means the Board of
              Directors of Cymer Inc.

       2.03   CALENDAR QUARTER - "Calendar Quarter" means any of the four
              calendar quarters in a full calendar year (e.g. January, February
              & March comprise the first calendar quarter).

       2.04   COMMITTEE - "Committee" means a Committee of two or more directors
              of the Company appointed by the Board of Directors of Cymer Inc.
              that will administer the Plan pursuant to the provisions of
              Section 3 of the Plan.

       2.05   COMPANY - "Company" means Cymer Inc. and, for purposes of Section
              2.24 and such other purposes as determined by the Committee, shall
              include any subsidiary of Cymer Inc.

       2.06   COMPENSATION - "Compensation" means the Participant's salary,
              Executive Incentive Plan (EIP) annual incentive bonus, or other
              items deemed Compensation by the Committee for purposes of this
              Plan.

       2.07   CYCLE - "Cycle" means the twelve month pay-in period for each
              deferral.  The first Cycle shall begin on January 1, 2000 and end
              on December 31, 2000.  The following Cycles shall begin on January
              1 of each year and end on December 31 of such year.

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       2.08   DECLINING BALANCE INSTALLMENTS - "Declining Balance Installments"
              means a series of annual payments such that each payment is
              determined by taking that portion of the Participant's account as
              of the Distribution Date and dividing by the number of years of
              distributions remaining.

       2.09   DEFERRAL AMOUNT - "Deferral Amount" means the total amount of
              Elective Deferred Compensation and/or Non-Elective Deferred
              Compensation with respect to a Participant.

       2.010  DEFERRED COMPENSATION ACCOUNT - "Deferred Compensation Account"
              means the account maintained on the books of account of the
              Company for a Participant pursuant to Section 6.

       2.10   DISABILITY - "Disability" means the Participant is eligible to
              receive benefits under a long term disability plan maintained by
              the Company.

       2.11   DISTRIBUTION DATE - "Distribution Date" means the date on which
              the Company makes distributions from the Participant's Deferred
              Compensation Account(s).

       2.12   EFFECTIVE DATE - "Effective Date" means the date on which this
              Plan is effective, December 20, 1999.

       2.13   ELECTION FORM - "Election Form" means the form or forms attached
              to this Plan and filed with the Committee by the Participant in
              order to participate in the Plan.  The terms and conditions
              specified in the Election Form(s) are incorporated by reference
              herein and form a part of the Plan.

       2.14   ELECTIVE DEFERRED COMPENSATION - "Elective Deferred Compensation"
              means the total amount elected to be deferred by an Eligible
              Employee on his/her Election Form, subject to approval by the
              Committee.

       2.15   ELIGIBLE EMPLOYEE - "Eligible Employee" means any employee of the
              Company who is an officer, or such other key executives of the
              Company as may be designated by the Chief Executive Officer of
              Cymer Inc.

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       2.16   INVESTMENT ALLOCATION CHANGE FORM - "Investment Allocation Change
              Form" means a form filed with the Committee by the Participant in
              order to request a change in the allocation of the Participant's
              Deferred Compensation Account(s) among the investment choices
              offered under the Plan.  The terms and conditions specified in the
              Investment Allocation Change Form are incorporated by reference
              herein and form a part of the Plan.

       2.17   INVESTMENT FUNDS - "Investment Funds" means those mutual funds,
              investment indexes or other measures of performance identified by
              the Committee, which shall be used to determine the returns on the
              Participants' Deferred Compensation Accounts.  The initial
              investment fund shall be the Prime Rate Account.  The Investment
              Funds may be changed by the Committee from time to time, at the
              sole discretion of the Committee.

       2.18   NON-ELECTIVE DEFERRED COMPENSATION - "Non-Elective Deferred
              Compensation" means the amount awarded to a Participant by the
              Committee pursuant to Section 4.02.

       2.19   PARTICIPANT - "Participant" means an Eligible Employee
              participating in the Plan in accordance with the provisions of
              Section 4.

       2.20   PLAN YEAR - "Plan Year" means the twelve month period beginning on
              the first day of the first Cycle in which the Eligible Employee
              elects to participate in the Plan.  The initial Plan Year will
              commence on January 1, 2000 and end on December 31, 2000.  Each
              later Plan year will begin on January 1 and end on December 31.

       2.21   PRIME RATE ACCOUNT - "Prime Rate Account" means an investment
              option providing for a return based on the hypothetical investment
              of the Deferral Amount, or a portion thereof, earning the Prime
              Rate as reported in the Wall Street Journal as of the last
              business day of each calendar quarter which rate shall be credited
              for the following calendar quarter.

       2.22   RELATED EMPLOYMENT - "Related Employment" means the employment of
              a Participant by an employer that is not the Company provided (i)
              such employment is undertaken by the Participant at the request of
              the


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              Company; (ii) immediately prior to undertaking such employment,
              the Participant was an employee of the Company, or was engaged in
              Related Employment as herein defined; and (iii) such employment is
              recognized by the Committee, in its sole discretion, as Related
              Employment.

       2.23   SUBSTANTIALLY EQUAL INSTALLMENTS - "Substantially Equal
              Installments" means a series of annual payments, such that equal
              payments over the remaining payment period would exactly amortize
              the Participant's Deferred Compensation Account balance in the
              Prime Rate Account as of the Distribution Date if the investment
              return remained constant at the return credited as of the
              Valuation Date immediately preceding the Distribution Date for the
              remainder of the payment period.

       2.24   TERMINATION OF EMPLOYMENT - "Termination of Employment" means the
              end of a Participant's employment with the Company for any reason
              other than Disability, Related Employment, or the termination of a
              Participant's Related Employment if the Participant returns to the
              Company.

       2.25   VALUATION DATE - "Valuation Date" means the date on which the
              value of a Participant's Deferred Compensation Account is
              determined for each Calendar Quarter as provided in Section 6
              hereof.  Unless and until changed by the Committee, the Valuation
              Dates within each Cycle shall be the last day of each of the four
              Calendar Quarters of the calendar year.  If a Participant requests
              a Liquidating Distribution under Section 7.06, then, for such
              Participant's Deferred Compensation Account, the Valuation Date
              for the Plan Year in which the Liquidating Distribution is
              requested shall be the last day of the Calendar Quarter in which
              the Participant submits the request.

       2.26   VESTED PARTICIPANT - "Vested Participant" means a Participant who
              would be eligible immediately for normal or early retirement under
              the qualified pension plan maintained by the Company.

3.     ADMINISTRATION OF THE PLAN

       3.01   PLAN ADMINISTRATOR.  The Committee, subject to Section 3.02, shall
              be the sole administrator of the Plan, and will administer the
              Plan.  The Committee shall have the power to formulate additional
              details and

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              regulations for carrying out this Plan.  The Committee also
              shall be empowered to make any and all determinations not
              authorized specifically herein that may be necessary or
              desirable for the effective administration of the Plan.  The
              Committee is authorized to engage such accountants, consultants
              and other service providers necessary to assist in the
              administration of the Plan.  Any decision or interpretation of
              any provision of this Plan adopted by the Committee shall be
              final and conclusive.

       3.02   DELEGATION OF DUTIES.  The Committee may delegate any or all of
              its duties as to the administration of this Plan to other
              individuals or groups of individuals within the Company, as it
              deems appropriate.

4.     PARTICIPATION

       4.01   ELECTIVE PARTICIPATION

              a.     Any Eligible Employee may elect to participate in the Plan
                     for a given Cycle by filing a completed Election Form for
                     the Cycle with the Vice-President of Human Resources.  With
                     regard to an election to participate:

                     i.     The Election Form must be filed with the
                            Vice-President of Human Resources prior to the
                            commencement of the Cycle to which the Election Form
                            pertains, or at such earlier time as determined by
                            the Committee.  Provided, however, with respect to a
                            deferral of salary, the Committee may allow an
                            Election Form for a Cycle to be filed after the
                            commencement of the Cycle with respect to salary to
                            be paid after the Election Form is filed.

                     ii.    In the event that an Eligible Employee first becomes
                            eligible to participate in the Plan during any given
                            year, such Eligible Employee shall as soon as
                            practicable be so notified in writing by the Company
                            and provided with an Election Form; provided,
                            however, that such Employee may only make an
                            election to defer with respect to that portion of
                            his or her Compensation for such year which is to be
                            paid after the date of filing of the deferral
                            election.

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                     iii.   The minimum deferral for a Cycle shall be $5,000.

                     iv.    A Participant may elect to receive payment of
                            amounts deferred during a Cycle upon Termination of
                            Employment, or in a specified year which shall be no
                            earlier than in the third Plan Year following the
                            Plan Year in which such amounts are deferred.
                            Further, a Participant may elect to receive payment
                            in a lump sum or in up to fifteen (15) annual
                            installments.

              b.     A Participant's election to defer future Compensation is
                     irrevocable upon the filing of his/her Election Form with
                     the Vice-President of Human Resources provided, however,
                     that an election to defer salary may be terminated with
                     respect to amounts not yet earned by mutual agreement in
                     writing between the Participant and the Committee.  Such
                     termination, if approved, shall be effective immediately.

       4.02   NON-ELECTIVE PARTICIPATION.  The Committee can, in its sole
              discretion, award to an Eligible Employee Non-Elective Deferred
              Compensation.  Unless otherwise specified by the Committee, the
              Participant shall determine the timing and form of payment of any
              Non-Elective Deferred Compensation at the time it is awarded,
              provided that the Participant may not elect to receive payment in
              a specific year which is prior to the third Plan Year following
              the Plan Year during which the amount is awarded.

5.     VESTING OF DEFERRED COMPENSATION ACCOUNT

       A Participant's interest in his/her Deferred Compensation Account shall
       vest immediately.

6.     ACCOUNTS AND VALUATIONS

       6.01   DEFERRED COMPENSATION ACCOUNTS.  A separate Deferred
              Compensation Account shall be established and maintained for
              each Participant for each Cycle.  Deferred amounts will be
              credited to a Participant's account on the first day of the
              month following the time at which the amount would otherwise
              have been paid.  Any Non-Elective Deferred Compensation


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              awarded to a Participant shall be credited to the Participant's
              Deferred Compensation Account on such date as specified by the
              Committee.

       6.02   INVESTMENT ALLOCATION OF DEFERRED COMPENSATION ACCOUNT.  The
              Participant's Deferral Amount shall be deemed to be invested in
              the Investment Funds in accordance with the Participant's
              election.

       6.03   INVESTMENT RETURN CREDITED.  The Participant's Deferred
              Compensation Account shall be credited quarterly with an
              investment return based on the investment return (gain or loss) of
              the fund or funds in which the Deferral Amount is deemed to be
              hypothetically invested.

       6.04   TIMING OF CREDITING OF INVESTMENT RETURN. That portion of the
              Participant's Deferred Compensation Account in the Prime Rate
              Account shall be revalued and credited with investment return as
              of each Valuation Date.  As of each Valuation Date, the value of
              that portion of the Participant's Deferred Compensation Account in
              any such account shall consist of the balance of such account as
              of the immediately preceding Valuation Date, plus the amount of
              any transfers from another account since the preceding Valuation
              Date, minus the amount of all distributions and transfers to
              another account, if any, made from such account since the
              preceding Valuation Date.  As of each Valuation Date, investment
              return shall be credited on that portion of the Participant's
              Deferred Compensation Account in the Prime Rate Account since the
              immediately preceding Valuation Date after adjustment for any
              transfers thereto or distributions or transfers therefrom.  With
              respect to any Elective Deferred Compensation or Non-Elective
              Deferred Compensation deferred and credited to a Participant's
              account since the immediately preceding Valuation Date, investment
              return (or loss) credited on the Valuation Date shall be credited
              from the time the amount is credited to the Participant's account
              pursuant to Section 6.01.

       6.05   CHANGE OF INVESTMENT ALLOCATION BY A PARTICIPANT.  If the Plan
              offers more than one Investment Fund, a Participant may make
              different investment allocations for each Cycle, and may change a
              Cycle's investment allocation once a year.  Any change will be
              effective as of April 1 of the next year if the Participant
              submits an Investment Allocation


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              Change Form to the Vice-President, Human Resources by December 1
              of any Plan year.

       6.06   CHANGE OF INVESTMENT FUNDS BY COMMITTEE.  The Committee may change
              the Investment Funds from time to time.  In the event of any such
              change, all Participants shall be given notice of the change at
              least thirty (30) days before the change is to be effective.  In
              addition, each Participant shall be given the opportunity to
              change his or her allocation of Investment Funds for his or her
              Deferred Compensation Account as of the effective date for the
              change; this change shall be in addition to any change permitted
              under 6.05.

              The Committee's decision to change the Investment Funds shall not
              in any manner alter the returns on the Participants' Deferred
              Compensation Accounts prior to the effective date of the change.

       6.07   NATURE OF ACCOUNT ENTRIES.  The establishment and maintenance of
              Participants' Deferred Compensation Accounts and the crediting of
              gains and losses pursuant to this Section 6, shall be merely
              bookkeeping entries and shall not be construed as giving any
              person any interest in any specific assets of the Company or of
              any subsidiary of the Company or any trust created by the Company,
              including any mutual funds or other investment funds owned by the
              Company or any such subsidiary or trust.  The hypothetical
              investment of the Participants' Deferred Compensation Accounts in
              the Investment Funds shall be for bookkeeping purposes only, and
              shall not require the establishment of actual corresponding funds
              by the Committee or the Company.  Benefits accrued under this Plan
              shall constitute an unsecured general obligation of the Company.

7.     BENEFITS

       7.01   NORMAL BENEFIT

              a.     A Participant's Deferred Compensation Account shall be paid
                     to the Participant in accordance with the terms of the
                     Participant's Election Form, subject to the terms and
                     conditions specified in the Election Form.  If a
                     Participant elects to receive payment of that portion of
                     his/her Deferred Compensation Account in the Prime


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                     Rate Account in installments, subject to a maximum of
                     fifteen (15) installments, payments shall be made in
                     Substantially Equal Installments.  If a Participant
                     elects to receive payment of his/her Deferred
                     Compensation Account in any other account in
                     installments, payments shall be made in Declining
                     Balance Installments.

              b.     Notwithstanding the provisions of Section 7.01a, and
                     notwithstanding any contrary election made by the
                     Participant on his/her Election Form, if a Participant has
                     a Termination of Employment, and if the Participant does
                     not qualify as a Vested Participant at the time of his/her
                     Termination of Employment, the Participant's Deferred
                     Compensation Account balance will be paid to the
                     Participant in a lump sum in the year following the
                     Participant's Termination of Employment.  However, upon the
                     written request of the Participant, the Committee, in its
                     sole discretion, may allow payments to be made to the
                     Participant in up to five (5) annual installments.

              c.     In the event of a Participant's death prior to receiving
                     any payments with respect to a Deferral Amount for a Cycle,
                     the Participant's designated Beneficiary will receive an
                     amount equal to the Participant's Deferred Compensation
                     Account for such Cycle, and such amount shall be paid in a
                     single sum or annual installments (not to exceed 10) in
                     accordance with the Participant's election.  However, the
                     Committee may, in its sole discretion, pay the
                     Participant's remaining account balance in a single sum if
                     so requested by the Participant's Beneficiary.  If the
                     Participant's designated Beneficiary survives the
                     Participant but dies before receiving a complete
                     distribution of the Participant's account, the remaining
                     account balance shall be paid to the estate of such
                     Beneficiary in a lump sum.

              d.     If a Participant dies after beginning to receive
                     payments with respect to a Deferral Amount for a Cycle,
                     the Participant's designated Beneficiary will receive an
                     amount equal to the Participant's remaining account
                     balance for such Cycle.  Such


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                     remaining account balance shall continue to be paid in
                     accordance with the Participant's election.  However,
                     the Committee may, in its sole discretion, pay the
                     Participant's remaining account balance in a single sum
                     if so requested by the Participant's Beneficiary.  If
                     the Participant's designated Beneficiary survives the
                     Participant but dies before receiving a complete
                     distribution of the Participant's account, the remaining
                     account balance shall be paid to the estate of such
                     Beneficiary in a lump sum.

       7.02   HARDSHIP BENEFIT.  In the event that the Committee, upon written
              petition of the Participant, determines in its sole discretion,
              that the Participant has suffered an unforeseeable financial
              emergency, the Company may pay to the Participant, as soon as is
              practicable following such determination, an amount necessary to
              meet the emergency, not in excess of the Deferred Compensation
              Account credited to the Participant.  The Deferred Compensation
              Account of the Participant thereafter shall be reduced to reflect
              the payment of a Hardship Benefit.

       7.03   REQUEST TO COMMITTEE FOR DELAY IN PAYMENT.  A Participant shall
              have no right to modify in any way the schedule for the
              distribution of amounts from his/her Deferred Compensation Account
              that the Participant has specified in his/her Election Form.
              However, upon a written request submitted by the Participant to
              the Committee, the Committee may, in its sole discretion, with
              respect to the Deferred Compensation Account for each Cycle:

              a.     Postpone one time the date on which payment shall commence;
                     and

              b.     Increase one time the number of installments to a number
                     not to exceed fifteen (15).

       Any such request(s) must be made at least ninety (90) days prior to the
       earlier of (1) the beginning of the Plan Year in which the Participant
       has elected for distributions to commence, or (2) the Participant's
       Termination of Employment.

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       7.04   TAXES; WITHHOLDING.  To the extent required by law, the Company
              shall withhold from payments made hereunder an amount equal to at
              least the minimum taxes required to be withheld by the federal, or
              any state or local, government.

       7.05   DATE OF PAYMENTS.  Except as otherwise provided in this Plan,
              payments under this Plan shall be made (or begin in the case of
              installments) on or before the fifteenth (15th) day of February of
              the calendar year following receipt of notice by the Committee of
              an event that entitles a Participant (or Beneficiary) to payments
              under the Plan, or at such other date as may be determined by the
              Committee.  Amounts that become payable to the estate of a
              Beneficiary under Sections 7.01c or 7.01d or pursuant to Section
              7.02 or Section 7.06 shall be paid within fifteen (15) days
              following the end of the calendar quarter in which a determination
              is made that an amount is payable, or at such other date as may be
              determined by the Committee.

       7.06   LIQUIDATING DISTRIBUTION.  Notwithstanding any provisions of the
              Plan or the Participant's Election Form to the contrary, following
              the receipt of a written request from a Participant for a
              Liquidating Distribution, the Company shall pay to the Participant
              the Participant's Liquidating Distribution Account Balance in a
              lump sum.  "Liquidating Distribution" shall mean a distribution
              requested by the Participant in writing directed to the Committee
              and specifically referencing this section.  "Liquidating
              Distribution Account Balance" shall mean all of the Deferred
              Compensation Accounts under the Plan in which the Participant has
              an undistributed balance, decreased by a forfeiture penalty equal
              to ten percent (10%) of the value of the Participant's Deferred
              Compensation Account(s).  A Liquidating Distribution shall be paid
              to a Participant on or before the fifteenth (15th) day of the
              month following the end of the calendar quarter during which the
              Participant requests the Liquidating Distribution.

              Notwithstanding any provisions of the Plan or the Participant's
              Election Form to the contrary, if the Participant requesting the
              Liquidating Distribution is, at the time of the request, an active
              employee of the Company, then the Participant, for a period of one
              (1) Plan Year following


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              the Plan Year during which the request for the Liquidating
              Distribution is made, shall be ineligible to participate in the
              Plan with respect to any Compensation not yet deferred.

       7.07   ALLOCATION OF DISTRIBUTIONS.  If a distribution of a portion of an
              account for a Cycle is made to a Participant or Beneficiary, and
              the amounts for such Cycle are invested in more than one
              Investment Fund, then a portion of such distribution shall be
              deemed to have been made from each Investment Fund on a prorata
              basis, based on the values of the Investment Funds as of the
              Valuation Date immediately preceding the distribution.

8.     BENEFICIARY DESIGNATION

       At any time prior to complete distribution of the benefits due to a
       Participant under the Plan, he/she shall have the right to designate,
       change, and/or cancel, any person(s) or entity as his/her Beneficiary
       (either primary or contingent) to whom payment under this Plan shall be
       made in the event of his/her death.  Each Beneficiary designation shall
       become effective only when filed in writing with the Committee during the
       Participant's lifetime on a form provided by the Committee.  The filing
       of a new beneficiary designation form will cancel all previously filed
       beneficiary designations relating to such Cycle or Cycles.  Further, any
       finalized divorce of a Participant subsequent to the date of filing of a
       beneficiary designation form in favor of Participant's spouse shall
       revoke such designation.

       If a Participant fails to designate a Beneficiary as provided above, or
       if his/her beneficiary designation is revoked by divorce or otherwise
       without execution of a new designation, or if all designated
       Beneficiaries predecease the Participant, then the distribution of such
       benefits shall be made to the Participant's estate in a lump sum.  If the
       Participant's designated Beneficiary survives the Participant but dies
       before receiving a complete distribution of the Participant's account,
       the remaining account balance shall be paid to the estate of such
       Beneficiary in a lump sum.


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9.     AMENDMENT AND TERMINATION OF PLAN

       9.01   AMENDMENT.  The Board of Directors may amend the Plan at any time
              in whole or in part, provided, however, that, except as provided
              in 9.02, no amendment shall be effective to decrease the benefits
              under the Plan payable to any Participant or Beneficiary with
              respect to any Elective or Non-Elective Deferred Compensation
              deferred prior to the date of the amendment.  Written notice of
              any amendments shall be given to each Participant in the Plan.

       9.02   TERMINATION OF PLAN

              a.     COMPANY'S RIGHT TO TERMINATE.  The Board of Directors may
                     terminate the Plan at any time.

              b.     PAYMENTS UPON TERMINATION.  Upon any termination of the
                     Plan under this section, Compensation shall cease to be
                     deferred prospectively, and, with respect to Compensation
                     deferred previously, the Company will pay to the
                     Participant (or the Participant's Beneficiary, if after the
                     Participant's death), in a lump-sum, the value of his/her
                     Deferred Compensation Account.

10.    MISCELLANEOUS

       10.01  UNSECURED GENERAL CREDITOR.  Participants and their beneficiaries,
              heirs, successors and assignees shall have no legal or equitable
              rights, interests, or other claims in any property or assets of
              the Company, nor shall they be beneficiaries of, or have any
              rights, claims, or interests in any life insurance policies,
              annuity contracts, or the policies therefrom owned or that may be
              acquired by the Company ("policies").  Such policies or other
              assets of the Company shall not be held in any way as collateral
              security for the fulfilling of the obligations of the Company
              under this Plan.  Any and all of the Company's assets and policies
              shall be and will remain general, unpledged, unrestricted assets
              of the Company.  The Company's obligation under the Plan shall be
              that of an unfunded and unsecured promise of the Company to pay
              money in the future.


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       10.02  GRANTOR TRUST.  Although the Company is responsible for the
              payment of all benefits under the Plan, the Company, in its sole
              discretion, may contribute funds as it deems appropriate to a
              grantor trust for the purpose of paying benefits under this Plan.
              Such trust may be irrevocable, but assets of the trust shall be
              subject to the claims of creditors of the Company.  To the extent
              any benefits provided under the Plan actually are paid from the
              trust, the Company shall have no further obligation with respect
              thereto, but to the extent not so paid, such benefits shall remain
              the obligation of, and shall be paid by, the Company.
              Participants shall have the status of unsecured creditors on any
              legal claim for benefits under the Plan, and shall have no
              security interest in any such grantor trust.

       10.03  SUCCESSORS AND MERGERS, CONSOLIDATIONS OR CHANGE IN CONTROL.  The
              terms and conditions of this Plan shall inure to the benefit of
              the Participants and shall bind the Company, its successors,
              assignees, and personal representatives.  If substantially all of
              the stock or assets of the Company are acquired by another entity,
              or if the Company is merged into, or consolidated with, another
              entity, then the obligations created hereunder shall be
              obligations of the acquirer or successor entity.

       10.04  NON-ASSIGNABILITY.  Neither a Participant, nor any other person,
              shall have any right to commute, sell, assign, transfer, pledge,
              anticipate, mortgage or otherwise encumber, transfer, hypothecate,
              or convey in advance of the actual receipt, any amounts payable
              hereunder, or any part thereof.  All rights to payments expressly
              are declared to be unassignable and nontransferable.  No part of
              the amounts payable, prior to actual payment, shall be subject to
              seizure or sequestration for the payment of any debts, judgments,
              alimony or separate maintenance owed by a Participant, or any
              other person, nor shall they be transferable by operation of law
              in the event of a Participant's, or any other person's, bankruptcy
              or insolvency.

       10.05  EMPLOYMENT OR FUTURE ELIGIBILITY TO PARTICIPATE NOT GUARANTEED.
              Nothing contained in this Plan, nor any action taken hereunder,
              shall be construed as a contract of employment, or as giving any
              Eligible Employee any right to be retained in the employ of the
              Company.


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              Designation as an Eligible Employee may be revoked at any time
              by the Board of Directors with respect to any Compensation not
              yet deferred.

       10.06  PROTECTIVE PROVISIONS.  A Participant will cooperate with the
              Company by furnishing any and all information requested by the
              Company in order to facilitate the payment of benefits hereunder,
              including taking such physical examinations as the Company
              reasonably may deem necessary and taking such other relevant
              action as may be requested by the Company.  If a Participant
              refuses to cooperate, the Participant's election to defer any
              Compensation which has not yet been deferred shall become null and
              void, and the Participant shall not be eligible to make any
              further deferral elections under the Plan.

       10.07  GENDER, SINGULAR AND PLURAL.  All pronouns, and any variations
              thereof, shall be deemed to refer to the masculine, feminine, or
              neuter, as the identity of the person(s) or entity(s) may require.
              As the context may require, the singular may be read as the plural
              and the plural as the singular.

       10.08  CAPTIONS.  The captions to the articles, sections, and paragraphs
              of this Plan are for convenience only and shall not control or
              affect the meaning or construction of any of its provisions.

       10.09  APPLICABLE LAW.  This Plan shall be governed and construed in
              accordance with the laws of the State of California.

       10.10  VALIDITY.  In the event any provision of this Plan is found to be
              invalid, void, or unenforceable, the same shall not affect, in any
              respect whatsoever, the validity of any other provision of this
              Plan.

       10.11  NOTICE.  Any notice or filing required or permitted to be given to
              the Committee shall be sufficient if in writing and hand
              delivered, or sent by registered or certified mail, to the
              principal office of the Company at 16750 Via Del Campo Court, San
              Diego, CA  92127, directed to the attention of the Vice-President,
              Human Resources.  Such notice shall be deemed given as of the date
              of delivery or, if delivery is made by mail, as of the date shown
              on the postmark on the receipt for registration or certification.
              Any notice to the Participant shall be addressed to the
              Participant at the


                                      -15-
<PAGE>

              Participant's residence address as maintained in the Company's
              records.  Any party may change the address for such party here
              set forth by giving notice of such change to the other parties
              pursuant to this Section.


                                      -16-
<PAGE>

                                     CYMER INC.
                        EXECUTIVE DEFERRED COMPENSATION PLAN

                                 2000 ELECTION FORM




     Name:__________________________  Social Security No:_____________________


COMPLETE SECTIONS A, B, C AND D OF THIS FORM.  COMPLETE SECTION E ONLY IF YOU
LIVE IN A COMMUNITY PROPERTY STATE AND DO NOT NAME YOUR SPOUSE AS BENEFICIARY IN
SECTION C.  RETURN YOUR COMPLETED FORM TO WALLACE BREITMAN, VICE PRESIDENT,
HUMAN RESOURCES.



A.   SALARY DEFERRAL ELECTION


     I elect to defer under the terms of the Cymer Executive Deferred
     Compensation Plan receipt of the following percentage or amount of my
     base salary payable in 2000 after the following date ___________ (select
     a, b or c):


     a.   / /  ______ % of my salary (5% - 100% in whole percentages).


     b.   / /  ______ % of my salary in excess of $170,000.


     c.   / /  $______ (indicate dollar amount) of my salary.  (If my
               total salary is less than the dollar amount indicated, the
               amount shall be reduced to the amount of my salary.)



     BONUS DEFERRAL ELECTION


     I elect to defer under the terms of the Cymer Inc. Executive Deferred
     Compensation Plan receipt of the following percentage of my eligible
     Executive Incentive Plan (EIP) award for 2000, payable in March, 2001
     (select a or b):


     a.   / /  ______ % of my eligible bonus (5% - 100% in whole
                    percentages).


     b.   / /  $__________ (indicate amount - $5,000 minimum) from my
               bonus.  (If my bonus is less than this amount, the amount
               shall be reduced to the amount of my bonus).


     I understand that an eligible bonus is a bonus payable from the Executive
     Incentive Plan (EIP) and that bonuses are discretionary and are not
     guaranteed.  I also


March 2000                             Page 1
<PAGE>

     understand that FICA tax must be paid in the year in which this bonus is
     granted to me and that applicable FICA, and local taxes if required,
     will be withheld from the portion of my bonus or other cash compensation
     that I receive in cash.

B.   FORM AND TIMING OF DISTRIBUTIONS


     (COMPLETE PART 1 AND PART 2 OF THIS SECTION)


     1.   FORM OF DISTRIBUTION


          Indicate the form of distribution of your deferred compensation.
          You can elect to receive payment in a lump sum or in up to 15
          annual installments.


          I elect to receive payment of my deferred compensation as follows
          (select a or b):


          a.   / /  In a lump sum.


          b.   / /  In _____ (specify number not exceeding 15) annual
          installments.


     2.   TIMING OF DISTRIBUTION


          INDICATE WHETHER YOU WANT TO RECEIVE YOUR FIRST INSTALLMENT (OR
          YOUR ENTIRE AMOUNT, IF YOU ELECT TO RECEIVE PAYMENT IN A LUMP SUM)
          OF YOUR DEFERRED COMPENSATION IN A SPECIFIC YEAR (MINIMUM DEFERRAL
          PERIOD OF 3 YEARS), OR IN THE YEAR FOLLOWING TERMINATION OF YOUR
          EMPLOYMENT.  IN GENERAL, PAYMENTS WILL BE MADE IN FEBRUARY OF THE
          YEAR DISTRIBUTION IS TO OCCUR.


          I elect to receive the first installment (or my entire account, if
          I elect a lump sum) of my deferred compensation (select a or b):


          a.   / /  in a specific year _________(specify year, but must
          be 2004 or after).


          b.   / /  following my Termination of Employment.


          Notwithstanding any election under Part 1 or Part 2 of this
          Section B, in the event of my Termination of Employment for any
          reason other than death prior to being a Retirement Eligible
          Participant, I understand that payment shall be made in a lump sum
          in the year following my Termination of Employment unless, upon my
          written request, the Committee, in its sole discretion, determines
          that payments shall be made in up to five (5) annual installments.

March 2000                             Page 2
<PAGE>


C.   DEATH BENEFITS (BENEFICIARY DESIGNATION AND PAYMENT ELECTION)


     1.   BENEFICIARY DESIGNATION


          If I die prior to the receipt of all payments to which I am
          entitled under the plan, payments shall be made to (select one):


          a.   / /  my estate


          b.   / /  the following beneficiary or beneficiaries


               Name                Address

               __________________________________________________________

               __________________________________________________________


     2.   PAYMENT ELECTION


          As to any death benefits payable to my beneficiary or to my
          estate, I elect to have payments made as follows (select one):


          a.   / /  In a lump sum within 90 days after my death.


          b.   / /  In _____ (specify number, not to exceed 10) annual
                    installments.  Payment shall be made in
                    Substantially Equal Installments or Declining
                    Balance Installments, with the first payment to be
                    made in the February following my death, and later
                    installments to be paid in February of each year.


                    If I fail to designate a beneficiary as provided
                    above, or if my beneficiary designation is revoked
                    by divorce, or otherwise, without execution of a new
                    designation, or if all my designated beneficiaries
                    predecease me or die prior to complete distribution
                    of my benefits, then the distribution of such
                    benefits shall be made to my estate.  However, if
                    any distribution to my primary beneficiary is to be
                    made in installments, and my primary beneficiary
                    dies before receiving all installments, the
                    remaining installments shall be paid to the estate
                    of my primary beneficiary.


          I reserve the right to change this designation of beneficiary at
          any time by completing a Change of Beneficiary Form.


March 2000                             Page 3
<PAGE>

D.   ACKNOWLEDGMENT


     SIGN AND DATE IN THIS SECTION.


     I agree to be bound by the terms and conditions of the Plan and agree
     that such terms and conditions shall be binding upon my beneficiaries and
     personal representatives.


     -----------------------------------             -----------------------
     Signature of Employee                           Date

E.   COMMUNITY PROPERTY STATE REQUIREMENTS

     THIS SECTION SHOULD BE COMPLETED BY YOUR SPOUSE IF YOU RESIDE IN A
     COMMUNITY PROPERTY STATE (ARIZONA, CALIFORNIA, IDAHO, LOUISIANA, NEVADA,
     NEW MEXICO, TEXAS, WASHINGTON, OR WISCONSIN) AND IF YOU DO NOT NAME YOUR
     SPOUSE AS SOLE PRIMARY BENEFICIARY IN SECTION C.

     I hereby consent to the designation of beneficiary set forth above.

     _____________________    ________  __________________________
     Witness                  Date      Signature of Spouse


              THIS FORM SHOULD BE RETURNED, BY ________________, 2000.
                                 TO THE OFFICE OF:

                                  WALLACE BREITMAN
                          VICE PRESIDENT, HUMAN RESOURCES
                                    CYMER, INC.
                              1675 VIA DEL CAMPO COURT
                                SAN DIEGO, CA 92172

ACCEPTANCE:

THE COMMITTEE, ON BEHALF OF CYMER, INC.,  HEREBY ACCEPTS THE PARTICIPANT'S
ELECTION FORM.


--------------------------------------------    ---------------------------
By                                              Date


March 2000                             Page 4