Exhibit 10.22


 


SUMMARY DESCRIPTION OF CYMER 2003 INCENTIVE BONUS PROGRAM


 


Participants’
Bonus Potential: Management, supervisors and
individual contributors at specified grade levels are eligible to participate
in the program.


 


All potential bonuses under the program are based on the participant’s
actual base salary.  The bonus potential
expressed as a percentage of base salary is as follows:


 


	
  Chief Executive Officer (“CEO”)

  	
   

  	
  120

  	
  %

  	
   

  	
   

  
	
  Chief Operating Officer

  	
   

  	
  100

  	
  %

  	
   

  	
   

  
	
  Chief Financial Officer

  	
   

  	
  80

  	
  %

  	
   

  	
   

  
	
  Executive Vice President

  	
   

  	
  80

  	
  %

  	
   

  	
   

  
	
  Chief Accounting Officer

  	
   

  	
  75

  	
  %

  	
   

  	
   

  
	
  President, Cymer Japan

  	
   

  	
  75

  	
  %

  	
   

  	
   

  
	
  All other participants

  	
   

  	
  7.5 

  	
  %

  	
  - 75%

  	
   

  



 


Bonus
Standards and Components: The program provides
for potential quarterly and year-end bonus payments to participants based upon
the following two standards:


 


•                  Annual financial
performance of Cymer.


•                  Achievement by
program participants of quarterly objectives (“quarterly component”)


 


The components of each
participant’s potential bonus under the program are as follows:


 


CEO and
Members of CEO Staff


 


•                  33.33% of the
potential bonus is based on achievement of annual operating plan (“AOP”)
operating income target (as a percentage of revenue).


 


•                  33.33% of the
potential bonus is based on achievement of AOP revenue target.


 


•                  33.34% of the
potential bonus is based on achievement of individual objectives, averaged over
four quarters.


 


All Other Participants 


 


•                  25% of the
potential bonus is based on achievement of AOP operating income target (as a
percentage of revenue).


 


•                  25% of the
potential bonus is based on achievement of AOP revenue target.


 


•                  50% of the
potential bonus is based on achievement of individual objectives, averaged over
four quarters.


 

















 


In the case of the two annual
financial components of the program, bonuses are paid only if Cymer achieves
more than 80% of the revenue and operating income targets.  For these two components, the bonus amounts
are determined on a proportional basis. 
For example, if Cymer were to achieve 80% of a performance target, no
bonus for that component would be paid, while 90% achievement would result in a
bonus equal to 50% of the potential bonus for that component, and 100%
achievement would result in a bonus equal to 100% of the potential bonus for
that component.  If achievement exceeds
100% of the performance target for a component, a 1.25 multiplier applies for
calculating the bonus payment.  Bonus
amounts for the operating income component may not exceed 200% of the potential
bonus for this component.  Bonus amounts
for the revenue component have no maximum.


 


The quarterly component of the
program is based upon each participant’s performance review and achievement of
quarterly objectives.  To receive the
quarterly bonus under the program, a participant must accomplish at least 60%
of his or her quarterly objectives. 
Above 60% accomplishment, the bonus amounts are determined on a
proportional basis up to a maximum of 100% of the potential bonus.  Cymer’s Board of Directors may approve the
payment of quarterly bonuses, even if the financial performance components have
not been achieved for a given quarter. 
Cymer will not pay bonuses under the program in any quarter in which
there is a reduction in force or in any quarter in which there is a mandatory
salary reduction.