**Exhibit 10.22**

 

SUMMARY DESCRIPTION OF CYMER 2003 INCENTIVE BONUS PROGRAM

 

***Participants’Bonus Potential:*** Management, supervisors andindividual contributors at specified grade levels are eligible to participatein the program.

 

All potential bonuses under the program are based on the participant’sactual base salary.  The bonus potentialexpressed 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%  |   |

 

***BonusStandards and Components:*** The program providesfor potential quarterly and year-end bonus payments to participants based uponthe following two standards:

 

•                  Annual financialperformance of Cymer.

•                  Achievement byprogram participants of quarterly objectives (“quarterly component”)

 

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

 

# **CEO andMembers of CEO Staff**

 

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

 

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

 

•                  33.34% of thepotential bonus is based on achievement of individual objectives, averaged overfour quarters.

 

## **All Other Participants**

 

•                  25% of thepotential bonus is based on achievement of AOP operating income target (as apercentage of revenue).

 

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

 

•                  50% of thepotential bonus is based on achievement of individual objectives, averaged overfour quarters.

 

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In the case of the two annualfinancial components of the program, bonuses are paid only if Cymer achievesmore than 80% of the revenue and operating income targets.  For these two components, the bonus amountsare determined on a proportional basis. For example, if Cymer were to achieve 80% of a performance target, nobonus for that component would be paid, while 90% achievement would result in abonus 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 forthat component.  If achievement exceeds100% of the performance target for a component, a 1.25 multiplier applies forcalculating the bonus payment.  Bonusamounts for the operating income component may not exceed 200% of the potentialbonus for this component.  Bonus amountsfor the revenue component have no maximum.

 

The quarterly component of theprogram is based upon each participant’s performance review and achievement ofquarterly objectives.  To receive thequarterly 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 aproportional basis up to a maximum of 100% of the potential bonus.  Cymer’s Board of Directors may approve thepayment of quarterly bonuses, even if the financial performance components havenot been achieved for a given quarter. Cymer will not pay bonuses under the program in any quarter in whichthere is a reduction in force or in any quarter in which there is a mandatorysalary reduction.

 

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