EXHIBIT
10.1


 


Veeco
Instruments Inc.


 


2009
Management Bonus Plan


 


February 27,
2009


 


·                  Profit Sharing: 25% of Participant’s
Bonus Target


·                  Based on Total Veeco EBITA results


·                  Calculated and paid quarterly


·                  Payable when EBITA > 5% of
Revenue (subject to review/reduction for Q3’09 and Q4’09, at the discretion of
the Compensation Committee)


·                  Suspended for Q1’09 and Q2’09 (representing
the forfeiture of 12.5% of total target bonus)


 


·                  Management Bonus: 75% of Participant’s
Bonus Target


·                  Metrics (measured and calculated
independently)


·                  50% Individual Performance Objectives


·                  25% Net Cash from Operations


·                  25% Revenue


 


·                  Individual Performance


·                  Awards will be determined and payable on
an annual basis


·                  Based on 3 to 5 “SMART” objectives
developed for each participant.


·                  Awards range from 0% (for failing to meet
minimum expectations) to 100% (for fully achieving the objective).


·                  Awards for Individual Performance are
payable even if awards for financial elements are not payable


 


·                  Financial Performance


·                  Awards based on Revenue and Net Cash from
Operations, each as compared to targets established at the beginning of the two
semi-annual performance periods


·                  Financial targets set, measured and paid
semi-annually:


·                  First Half 2009: January 2009 to June 2009


·                  Based on the approved Veeco 2009 Business
Plan


·                  Weighted 40%


·                  Second Half 2009: July 2009 to December 2009


·                  Established at the beginning of the
second half performance period and based on the Veeco 2009 Business Plan and
the then current forecast for Second Half performance


·                  Weighted 60%


·                  Metrics established for the following
organizations:


·                  Corporate


·                  Process Equipment


·                  Data Storage/MOCVD


·                  MBE


·                  Metrology Group


·                  Optical/Industrial Business Unit (70% BU;
30% MI Group for Revenue Metric)


·                  AFM Business Unit (70% BU; 30% MI Group
for Revenue Metric)


·                  Solar (Hybrid approach based on bookings,
revenue and expense management)


 

















 


·                  Financial Performance Ranges: Revenue


 


	
   

  	
   

  	
  Small
  Business: H1 Revenue Plan <

  $30m

  	
   

  
	
   

  	
   

  	
  Performance

  	
   

  	
  Bonus

  Award

  	
   

  
	
   

  	
  Maximum

  	
   

  	
  125

  	
  %

  	
  150

  	
  %

  
	
   

  	
  Target

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
   

  	
  Threshold

  	
   

  	
  85

  	
  %

  	
  75

  	
  %

  
	
   

  	
   

  	
   

  	
  <85

  	
  %

  	
  0

  	
  %

  



 


	
   

  	
   

  	
  Medium Business: $30m  < H1 Revenue

  < $60m

  	
   

  
	
   

  	
   

  	
  Performance

  	
   

  	
  Bonus

  Award

  	
   

  
	
   

  	
  Maximum

  	
   

  	
  120

  	
  %

  	
  150

  	
  %

  
	
   

  	
  Target

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
   

  	
  Threshold

  	
   

  	
  85

  	
  %

  	
  75

  	
  %

  
	
   

  	
   

  	
   

  	
  <85

  	
  %

  	
  0

  	
  %

  



 


	
   

  	
   

  	
  Large Business: H1 Revenue > $60m

  	
   

  
	
   

  	
   

  	
  Performance

  	
   

  	
  Bonus

  Award

  	
   

  
	
   

  	
  Maximum

  	
   

  	
  110

  	
  %

  	
  150

  	
  %

  
	
   

  	
  Target

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
   

  	
  Threshold

  	
   

  	
  85

  	
  %

  	
  75

  	
  %

  
	
   

  	
   

  	
   

  	
  <85

  	
  %

  	
  0

  	
  %

  



 


·                  Financial Performance Ranges: Net Cash
from Operations


 


	
   

  	
   

  	
  H1 Net Cash from Operations

  	
   

  
	
   

  	
   

  	
  Performance

  	
   

  	
  Bonus

  Award

  	
   

  
	
   

  	
  Maximum

  	
   

  	
  130

  	
  %

  	
  150

  	
  %

  
	
   

  	
  Target

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
   

  	
  Threshold

  	
   

  	
  85

  	
  %

  	
  75

  	
  %

  
	
   

  	
   

  	
   

  	
  <85

  	
  %

  	
  0

  	
  %

  



 


Awards will be
interpolated for performance between threshold, target and maximum.


 


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