EX-10.16



 Exhibit 10.16 

EMPLOYMENT AGREEMENT 

MKS Instruments, Inc., a Massachusetts corporation (the “Company”), and Seth Bagshaw of Boxford, MA (“Employee”)
agree, effective August 1, 2016, as follows. 
 1. Employment. The Company is employing Employee on an at-will basis in the
position of Vice President and Chief Financial Officer. Employee agrees to comply with the Company’s policies.
 2.
Confidential Information Agreement. Employee will sign and deliver to the Company, at the same time that Employee executes this Employment Agreement, the Confidential Information, Intellectual Property and Non-Solicitation Agreement of
MKS Instruments, Inc. (“Confidential Information Agreement”) that is Attachment 1 to this Employment Agreement. 
 3. Duty to
The Company. While employed by the Company, Employee: (a) will devote his or her full working time and best efforts to the business of the Company; and (b) will not (without the prior, express, written consent of the Chief
Executive Officer of the Company) engage in any business activity (whether or not for gain) that interferes with Employee’s work for the Company. Notwithstanding the previous sentence, this Employment Agreement does not prohibit Employee
from managing his or her personal investments or engaging in charitable and unpaid professional activities (including serving on charitable and professional boards), so long as doing so does not materially interfere with Employee’s work for the
Company or violate Section 7 of this Employment Agreement.
 4. Compensation.  

(a) Base Salary. The Company will pay Employee base salary at the rate of $475,000 per year (the “Base Salary”), in
accordance with the Company’s normal payroll practices. The Company may review and adjust the amount of the Base Salary from time to time in its sole discretion.

(b) Incentive Compensation Plan. Employee will be entitled to participate in the Company’s Annual Corporate Management/Key
Employee Bonus Plan, to the extent applicable to Employee’s position.
 (c) Stock Incentive Plan. Employee will be entitled
to participate in the Company’s stock incentive plan to the extent applicable to Employee’s position.
 (d)
Benefits. Employee will be eligible to participate in the Company’s generally available employee benefit plans, which currently include medical, dental, vision, life, accidental death and dismemberment, short-term disability and
long-term disability insurance, a 401(k) savings plan and an employee stock purchase plan, subject to the terms and conditions of each plan.

(e) Paid Time Off. Employee will be eligible for 20 days of paid vacation per year, plus paid sick time and holidays, all
subject to the terms and conditions of the Company’s policies. 







 (f) Expenses. The Company will reimburse Employee for expenses Employee reasonably
incurs in performing his or her duties, to the extent provided in the Company’s expense reimbursement policies. Reimbursement of expenses in one tax year will not affect reimbursement of expenses in any other tax year. 

5. End of Employment. Either Employee or the Company may end the employment relationship at any time, for any reason, with or
without notice or cause. The employment relationship will end automatically and immediately upon Employee’s death or entitlement to long-term disability benefits under the Company’s long-term disability program. The date on which
Employee’s employment ends, whether as the result of a resignation by Employee, a termination of employment by the Company or an automatic termination of employment upon death or disability, is referred to in this Employment Agreement as the
“Employment End Date.” If Employee resigns or the Company terminates Employee’s employment, the Company will (in either case) have the right at any time, for any reason in its sole discretion to decide the Employment End
Date. In no event will the Company’s deciding the Employment End Date following Employee’s resignation be considered termination by the Company of Employee’s employment.

6. Company Obligations Upon End of Employment. When the employment relationship ends, the Company will have no obligation
to pay or provide Employee at any time any compensation, payment or benefit of any kind, except as expressly provided in Sections 6(a) though through 6(e) below.

(a) Minimum Obligations. When the employment relationship ends, no matter how it ends: (i) the Company will pay Employee any
unpaid Base Salary through the Employment End Date; (ii) Employee will be entitled to accrued, vested benefits under the Company’s benefit plans and programs to the extent provided in Section 4(d); (iii) the Company will pay Employee for
any accrued but unused vacation; and (iv) the Company will reimburse Employee for any unreimbursed expenses incurred through the Employment End Date to the extent provided in Section 4(f).

(b) 30 Days’ Base Salary After Certain Resignations. If Employee provides the Company at least 30 days’ advance written
notice of resignation of employment, is an active employee in good standing at the time of such notice and continues to perform his or her duties diligently and professionally to the extent requested thereafter, the Company will pay Employee his or
her Base Salary for at least 30 days after such notice, even if the Employment End Date is earlier. 
 (c) 30 Days’ Base Salary
After Certain Terminations. If the Company terminates Employee’s employment other than for Cause, as defined below, the Company will provide Employee with written notice of termination and pay Employee his or her Base Salary for at
least 30 days after such notice of termination, even if the Employment End Date is earlier.
 (d) Eligibility for Ordinary Severance
Pay. If the Company terminates Employee’s employment, Employee will be eligible for severance pay in a lump sum in an amount equal to a minimum of 6 months of Base Salary or two weeks of Base Salary per year of service, whichever is
greater, in either case provided that all of 

  
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the following conditions are satisfied: (i) the Company’s primary reason for terminating Employee’s employment was a change to the Company’s business needs (such as reduction
in force or elimination of position) and not Cause as defined below; (ii) Employee has complied with and continues to comply with all of Employee’s obligations under this Employment Agreement and the Confidential Information Agreement; and
(iii) Employee executes, provides to the Company within 45 days after the Employment End Date and does not thereafter revoke or attempt to revoke, a general release of claims in a form satisfactory to the Company (“General
Release”). The Company’s good-faith determination that one or more of the conditions listed above has not been satisfied will be binding and conclusive. 

(e) Eligibility for Enhanced Severance Compensation. Employee will become eligible for the “Enhanced Severance
Compensation,” as described below, instead of severance pay under Section 6(d) above or under any other program or policy of the Company, if and only if all of the following conditions are satisfied: (i) the Company terminates
Employee’s employment without “Cause” (as defined below) or Employee resigns for “Good Reason” (as defined below); (ii) the Employment End Date is within 24 months after the effective date of a Change in Control (as
defined below); (iii) Employee has complied with and continues to comply with all of Employee’s obligations under this Employment Agreement and the Confidential Information Agreement; and (iv) Employee executes, provides to the Company
within 45 days after the Employment End Date and does not thereafter revoke or attempt to revoke, a General Release. The Company’s good-faith determination that one or more of the conditions listed above has not been satisfied will be
binding and conclusive.
 (f) “Enhanced Severance Compensation.” If Employee becomes eligible for the Enhanced
Severance Compensation:
 (i) Base Salary. The Company will pay Employee, within 14 days after the General
Release become irrevocable, a lump sum in an amount equal to two times annual Base Salary (determined without regard to any reduction in Base Salary giving rise to “Good Reason,” as defined below). 

(ii) Incentive Compensation. The Company will pay Employee, within 14 days after the General Release becomes
irrevocable, a lump sum equal to two times the annual amount of incentive compensation for which Employee was eligible under any Incentive Compensation Plan of the Company then in effect for the year containing the Employment End Date. Additionally,
the Employee will receive a payment for target bonus, prorated for the current year. 
 (iii) Continuation of
Benefits. For a period of 24 months after the Employment End Date, to the extent Employee elects to continue group medical, vision, or dental insurance coverage under COBRA and timely remits the amount of premium assessed to similarly
situated active employees for comparable coverage, the Company will pay the Company’s usual share of such premiums. Benefits payable under this Section 6(f)(iii) will terminate to the extent Employee ceases to be eligible for COBRA
coverage under the Company’s medical benefits plan. Notwithstanding the foregoing, the Company will not pay the contribution toward COBRA coverage described above to the extent that the 

  
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Company reasonably determines that doing so would subject the Company to the excise tax under Section 4980D of the Internal Revenue Code (the “Code”) (as a result of discriminatory
coverage under a group health plan). 
 (iv) Restricted Stock Units or Stock Appreciation Rights Employee’s
unvested equity awards as of the Employment End Date will be subject to accelerated vesting to the extent provided in the respective equity award agreement issued to Employee under the then effective MKS Instruments, Inc. equity incentive plan
(including the MKS Instruments, Inc. 2014 Stock Incentive Plan. 
 (vi) No Obligation to Mitigate Damages; Effect on Other
Contractual Rights. Employee will not be required to mitigate damages or the amount of any payment provided for under this Employment Agreement by seeking other employment or otherwise, nor will any payment provided for under this
Employment Agreement be reduced by any compensation earned by Employee as the result of employment by an employer other than the Company or a direct or indirect parent, subsidiary or affiliate of the Company after the Employment End Date, or
otherwise. 
 (g) “Cause.” “Cause” to terminate Employee’s employment will exist if Employee:

 (i) commits a felony or engages in fraud, misappropriation or embezzlement; 

(ii) knowingly fails or refuses to perform Employee’s duties in a material way and, to the extent that the Company
determines such failure or refusal can reasonably be cured, fails or refuses to effect a cure within 10 days after the Company notifies Employee in writing of the failure or refusal; 

(iii) knowingly causes, or knowingly creates a serious risk of causing, material harm to the Company’s business or
reputation; or 
 (iv) breaches, in a material way, this Employment Agreement, the Confidential Information Agreement or any
other agreement between Employee and the Company, and, to the extent that the Company determines such breach can reasonably be cured, fails or refuses to effect a cure within 10 days after the Company notifies Employee in writing of the breach. 

(h) “Good Reason.” “Good Reason” for Employee to resign will exist if, without Employee’s express
written consent: 
 (i) the Company materially reduces Employee’s position, duties or responsibilities; 

(ii) the Company reduces Employee’s Base Salary as in effect on the date hereof or as the same may be increased from time
to time during the term of this Employment Agreement; 

  
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 (iii) the Company changes Employee’s principal place of work to a location
more than 50 miles from Employee’s current principal place of work. 
 Notwithstanding the foregoing, an action described above will not constitute
Good Reason unless: (A) Employee, within 30 days after the he or she learns, or with reasonable diligence should have learned, of such action, delivers to the Company written notice identifying the action as Good Reason and demanding its correction;
(B) the Company fails to correct such event within 30 days after receipt of such notice; and (C) Employee resigns for Good Reason within 90 days after the date Employee learned, or with reasonable diligence should have learned, of such action.

 (i) “Change in Control.” For purposes of this Employment Agreement, the term “Change in Control”
will mean the first to occur of any of the following events: (i) any “person” (as that term is used in Section 13 and 14(d)(2) of the Securities Exchange Act of 1934 (“Exchange Act”)) becomes the beneficial owner (as that
term is used in Section 13(d) of the Exchange Act), directly or indirectly, of fifty percent (50%) or more of MKS’ capital stock entitled to vote in the election of directors; (ii) the shareholders of MKS approve any consolidation or merger of
MKS other than a consolidation or merger of MKS in which the holders of the common stock of MKS immediately prior to the consolidation or merger hold more than fifty percent (50%) of the common stock of the surviving corporation immediately after
the consolidation or merger; or (iii) the shareholders of MKS approve the sale or transfer of all or substantially all of the assets of MKS to parties that are not within a “controlled group of corporations” (as defined in Code Section
1563) in which MKS is a member.
 7. Non-Competition.

(a) During Employee’s MKS Employment (as defined below) and for 12 months immediately thereafter (together, the “Non-Compete
Period”), Employee will not engage in or otherwise carry on, directly or indirectly anywhere in the world (as principal, agent, employee, employer, investor, shareholder (except for holdings of no greater than 1% of the total outstanding shares
in a publicly-traded company), consultant, partner, member, manager, financier or in any other individual or representative capacity of any kind whatsoever), any Competitive Activity (as defined below).

(b) “MKS Employment” means the period beginning on the first day that Employee is employed by the Company and ending on the first
day on which Employee is no longer employed by any MKS Entity (as defined below).
 (c) “MKS Entity” means (i) the Company; (ii)
any current or future parent, subsidiary or affiliate of the Company; or (iii) any successor or assign of (i) or (ii).
 (d)
“Competitive Activity” means business or activity competitive with an MKS Entity but only to the extent that business or activity is related to, similar to or competitive with the activities of the business unit(s), division(s),
laborator(y)(ies), facilit(y)(ies) and other operational unit(s) in or for which Employee performed work for an MKS Entity or about which Employee acquired Proprietary Information (as defined in the Confidential Information Agreement).

  
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 (e) The Non-Compete Period will be extended for any period during which Employee is in breach of
this Employment Agreement or the Confidential Information Agreement.
 (f) If any court of competent jurisdiction determines that this
Section 7 is unenforceable because the Non-Compete Period is too long or because Competitive Activity includes too great a range of activities or too wide a geographic scope, the parties agree that this Section 7 should be interpreted to extend only
over the maximum period of time or range of activities or geographic scope as to which it may be enforceable. 
 (g) The post-employment
restrictions on Employee’s conduct contained in this Employment Agreement and in the Confidential Information Agreement: (i) will continue to apply even if Employee’s duties, title, compensation, location or other terms or conditions
of employment change, and even if such change or changes are material; and (ii) will apply regardless of how or why Employee’s employment ends.

(h) The Company and Employee agree that violation by Employee of any of the provisions of this Section 7 of this Employment Agreement would
cause the Company irreparable harm beyond what could reasonably or adequately be compensated in damages, and that the Company would therefore be entitled (in addition to the Company’s other remedies) to an injunction, declaratory judgment or
restraining order against any such violation or threatened violation.
 8. Code Section 409A Compliance.

(a) Where this Employment Agreement refers to Employee’s termination of employment for purposes of receiving any payment, whether
such a termination has occurred will be determined in accordance with Section 409A of the Internal Revenue Code (the “Code”) and Treasury Regulation Section 1.409A-1(h) (or any successor provisions) to the extent required by law. 

(b) To the extent that benefits under Section 6 are contingent upon Employee providing a General Release, Employee will sign and return the
General Release within the reasonable time period designated by the Company, which will not be more than 45 days. If the period for Employee to review a General Release plus any revocation period crosses calendar years, payments contingent
upon the Release will be made in the later calendar year. Any payments contingent upon the General Release that would otherwise be made during the period for review and revocation of the General Release will be made, provided that the General
Release is timely executed and returned to the Company and not revoked, on the first scheduled payment date after such period ends. Each payment in respect of Employee’s termination of employment under Section 6 of the Employment Agreement is
designated as a separate payment for Section 409A purposes.

  
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 (c) If Employee is designated as a “specified Executive” within the meaning of Code
Section 409A (while the Company is publicly traded), any deferred compensation payment subject to Section 409A to be made during the six-month period following Employee’s termination of employment will be withheld and the amount of the payments
withheld will be paid in a lump sum, without interest, during the seventh month after Employee’s termination; provided, however, that if Employee dies prior to the expiration of such six month period, payment to Employee’s beneficiary will
be made as soon as reasonably practicable following Employee’s death. The Company will identify in writing delivered to Employee any payments it reasonably determines are subject to delay under this Section 8(c). In no event will the
Company have any liability or obligation with respect to taxes for which Employee may become liable as a result of the application of Code Section 409A. 

9. Code Sections 280G/4999. If (a) any payments or benefits to Employee in connection with this Employment Agreement
(“Payments”) would be subject to the excise tax imposed by Code Section 4999 (the “Parachute Tax”), (b) paying Employee a lesser amount would avoid the Parachute Tax entirely and (c) payment of such lesser amount would, after
taking into account applicable federal, state and local income taxes and the Parachute Tax, result in Employee receiving a greater after-tax payment than if the Company made the Payments in full, then the Company will pay Employee such lesser amount
instead of making the Payments in full. The reporting and payment of any Parachute Tax will in all events be Employee’s responsibility. The Company will not in any event provide a gross-up or any other payment to compensate Employee
for the payment of the Parachute Tax or for any reduction in the Payments. The Company will withhold from the Payments any amounts it reasonably determines are required under Code Section 4999(c) and the Treasury Regulations thereunder. 

10. Withholding. The Company will deduct from the amounts payable to Employee pursuant to this Employment Agreement all
withholding amounts and deductions required by law or authorized by Employee.
 11. Changes to Plans and Policies. Nothing in
this Employment Agreement will: (a) require the Company or its affiliates to establish, maintain or continue any incentive compensation plan, stock incentive plan or other benefit plan, policy or arrangement; (b) restrict the right of the
Company or any of its affiliates to amend, modify or terminate any such plan, policy or arrangement; (c) entitle Employee to participate in any such plan policy or arrangement at any specified level (or at all) in any year; or (d) prevent any future
change to any such plan, policy or arrangement from applying to Employee in accordance with the terms of the change. 
 12.
Assignment. The rights and obligations of the Company under this Employment Agreement will inure to the benefit of, and be binding upon, the Company’s successors and assigns. The rights and obligations of Employee under this
Employment Agreement will inure to the benefit of, and will be binding upon, Employee’s heirs, executors and legal representatives. Employee may not delegate or assign any obligations under this Employment Agreement. 

13. Entire Agreement and Severability. This Employment Agreement and the Confidential Information Agreement supersede any and all
other agreements, either 

  
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oral or in writing, between Employee and the Company with respect to the Company’s employment of Employee. They contain all of the covenants and agreements between the parties with
respect to such employment. Neither party is entering into this Employment Agreement on the basis of any representation, inducement, promise or agreement, oral or otherwise, by any party, or by any one acting on behalf of any party, which is
not stated herein. Any modification of this Employment Agreement will be effective only if it is in writing and signed by both parties to this Employment Agreement. If any provision in this Employment Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force and effect without being impaired or invalidated in any way. 

14. Miscellaneous. This Employment Agreement and the rights and obligations of the parties hereunder will be governed by, and
construed in accordance with, the laws of the Commonwealth of Massachusetts, excluding (but only to the extent permitted by law) its conflict of laws and choice of law rules. The parties agree that service of any process, summons, notice or
document by U.S. certified mail or overnight delivery by a generally recognized commercial courier service to Employee’s last known address (or any mode of service recognized to be effective by applicable law) will be effective service of
process for any action, suit or proceeding brought against Employee. The failure of either party hereto to enforce any right under this Employment Agreement will not be considered a waiver of that right, or of damages caused thereby, or of any
other rights under this Employment Agreement.
 15. Arbitration and Waiver of Jury Trial.

(a) Any “Legal Dispute” (as defined below) between Employee and any MKS Entity (or between Employee and any employee or agent of
any MKS Entity, to the extent directly or indirectly arising from or relating in any way to Employee’s employment with or separation from the Company) will be resolved by final and binding arbitration. Notwithstanding the foregoing
sentence, the Company may, in its sole discretion, obtain preliminary injunctive relief enforcing the provisions of the Confidential Information Agreement or Section 7 of this Employment Agreement from any court of competent jurisdiction.

(b) “Legal Dispute” means a dispute about legal rights or legal obligations, including but not limited to any rights or obligations
arising under this Employment Agreement; the Confidential Information Agreement; any other agreement; any applicable legal or equitable doctrine; any applicable common law theory; or any applicable federal, state or local, statute, regulation or
other legal requirement.
 (c) The arbitration will be held in the Commonwealth of Massachusetts. It will be conducted in accordance
with the then-prevailing Employment Arbitration Rules of the American Arbitration Association.
 (d) Notwithstanding any other provision of
this Employment Agreement or any other agreement or of any arbitration rules, no Legal Dispute involving any MKS Entity may be included in any class or collective arbitration or any other class or collective proceeding. The exclusive method for
resolving any such Legal Dispute will be arbitration on an individual basis.

  
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 (e) Any issues about whether a dispute is subject to arbitration will be determined by a court of
competent jurisdiction and not by an arbitrator. Any issues about the meaning or enforceability of Section 15(d) will be decided by a court of competent jurisdiction and not by an arbitrator.

(f) The Company, Employee and the arbitrator will treat all aspects of the arbitration proceedings, including without limitation, discovery,
testimony and other evidence, briefs and the award, as strictly confidential, except that the arbitration award may be disclosed to the extent necessary to enforce the award, the provisions of the Confidential Information Agreement or the provisions
of this Employment Agreement.
 (g) Employee and the Company understand and acknowledge that by agreeing to arbitrate the disputes covered
by this Section 15, they are waiving the right to resolve those disputes in court and waiving any right to a jury trial with respect to those disputes.

16. Knowing and Voluntary Agreement. Employee understands that Employee has the right to consult counsel before signing this
Employment Agreement.
 IN WITNESS WHEREOF, the parties hereto have executed, in the Commonwealth of Massachusetts, this Employment
Agreement as a sealed instrument, all as of the day, month and year first written above. 
 MKS INSTRUMENTS, INC. 

 

							
	 By: /s/ Gerald G. Colella
	 		 	Dated:	 	8/1/16
	Name: Gerald G. Colella	 		 		 	
	Title: CEO & President	 		 		 	
				
	 /s/ Seth H. Bagshaw
	 		 	Dated:	 	July 27, 2016
	[EMPLOYEE]	 		 		 	


  
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