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Exhibit
10.34
 
 Plan: FY08 Executive Incentive Plan  Division: Corporate
 I.
    
    Objective
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 year.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 December 30, 2007, the beginning of the plan year, and
will continue in effect until January 3, 2009, or until terminated or amended by the Board
of Directors. This plan supersedes all prior EIP plans.IV.
    
    Eligibility
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 the EIP.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 plan objectives, as soon as possible after the
determination by the CEO or Board of Directors.Individuals must be employed by Thoratec at the close of the fiscal year and on the date of
payment in order to be eligible for an award under the EIP except participants who are
involuntarily terminated due to a divestiture, plant closing, reorganization or reduction in
force during the plan year may receive an award on the prorated basis described in Section
VIII, Plan Administration, Prorated Awards, [subject to approval by the CEO]. These monies
will be paid out at the usual and customary time of payment of all bonuses. For purposes of
this plan, termination shall mean the day the employee leaves the job, which may not
necessarily be the last day on the payroll.V.
    
    Incentive Objectives
Objectives will be agreed to by the CEO with the Executive Officers reporting to him and
with concurrence by the Board of Directors as necessary. Generally, there will be a minimum
of four up to a maximum of seven objectives, which will include two or more corporate
financial objectives. Each objective will be weighted according to its importance, which
weight will determine the percentage of the bonus awarded for completion of that objective.
(See Section VI below.)VI.
    
    Bonus Opportunity and Award
The award opportunity will be expressed as a percentage of the participants base salary at
the close of the fiscal year.
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VII.
    
    Performance Goal and Payout
In addition to your individual goals, everyone will have two company-oriented financial
goals that will be achieved according to the following guidelines:
 (1)Revenue
    
    Non-GAAP Income Before TaxGoal
    
    Award
    
    Goal
    
    AwardThreshold = to, or >
    
    $
    *
    
    
    
    50
    %
    
    $
    *
    
    
    
    50
    %Target = to, or >
    
    $
    *
    
    
    
    100
    %
    
    $
    *
    
    
    
    100
    %
  (1)
    
    NGIBT earnings is defined as consolidated GAAP net income before taxes excluding, as
applicable, amortization of intangibles, in-process R&D, impairment of intangibles, certain
litigation, restructuring and CEO transition expenses and other unusual or non-recurring
costs, and also excluding share-based compensation expense under SFAS No. 123R and changes
in the value of the make-whole provision of our convertible notes and special incentive
awards.
 VIII.
    
    Over-Achievement Award Opportunity/Performance Accelerator
In addition, each EIP participant will receive a [x]*% increase for every [y]*% increase in
consolidated NGIBT earnings over the target level. For example, if you earned 85% of your
total objectives for the year, and the company made $* of NGIBT earnings (a *%
over-achievement), with a base salary of $50,000 and a bonus target of 20%, your award would
be calculated as follows:
 Annualized base salary ($50,000) x target bonus (20%) x
(30% financial and 55% individual accomplishment for 85% total) x 1.* = $*
 IX.
    
    Plan AdministrationProrated Awards.Individuals who are promoted to eligible positions during the plan
year, new hires into eligible positions and eligible employees who are either on
leave or on active written warning for part of the year may be awarded partial bonuses
under this program, based on the accomplished objectives and their respective weights,
subject to the approval of the CEO.Transfers.In the event of transfer of an eligible participant to another position or
department, the transferring manager will evaluate EIP results for prorated award (see
Prorated Awards above) at the end of the year, and forward to the Human Resources
Department. The hiring manager will be responsible for setting the key business plan
objectives for the balance of the year, if applicable, and forwarding to Human Resources for
approval. Awards based on these objectives will be prorated (see Prorated Awards above) as
well, for end of the year payment.Authority.The Board of Directors shall have the full power and authority to construe,
interpret and administer the plan. All decisions, actions or interpretations of the Board
of Directors shall be final and conclusive and binding on all
parties. This program shall be administered by the Human Resources Department.
 
 *
    
    Amounts and percentages to be determined by the Compensation and
Option Committee of the Board of Directors. 2




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X.
    
    General Provisions
 
    
    The Executive Incentive Plan for 2008 may be reviewed and revised at the Boards
discretion.
    
    Nothing in this plan shall be construed to limit in any way the right of Thoratec
Corporation to terminate an employees employment at any time, with or without cause or
notice, nor shall it be evidence of any agreement or understanding, expressed or
implied, that Thoratec or any of its subsidiaries will employ an employee in any
particular position, for any particular period of time, ensure participation in any
incentive programs, or the granting of awards from such programs as they may from time
to time exist or be constituted. Thoratec reserves the right to discontinue or alter
the plan at its sole discretion at any time with or without notice.
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