Document:

Exhibit 10.19

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST

AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of June 7,

2002 by and between CYMER, INC (“Borrower”), and WELLS FARGO HSBC TRADE BANK,

NATIONAL ASSOCIATION (“Trade Bank”).

 

RECITALS

 

WHEREAS,

Borrower is currently indebted to Trade Bank pursuant to the terms and

conditions of that certain Credit Agreement between Borrower and Trade Bank

dated as of June 28, 2001, as amended from time to time (“Credit Agreement”).

 

WHEREAS, Trade

Bank and Borrower have agreed to certain changes in the terms and conditions

set forth in the Credit Agreement and have agreed to amend the Credit Agreement

to reflect said changes.

 

NOW,

THEREFORE, for valuable consideration, the receipt and sufficiency of which are

hereby acknowledged, the parties hereto agree that the Credit Agreement shall

be amended as follows:

 

I.                                         Article

I. CREDIT FACILITY,  Section 1.1 The Facility is hereby amended by deleting “June 15, 2002” as the Facility Termination

Date, and by substituting “June 16, 2003”

therefor.

 

II.                                     Article

VII. DEFINITIONS  Section 8.20 “Subordinated Debt” is hereby deleted in its entirety,

and the following substituted therefor:

 

“8.20 “Subordinated Debt” means Borrower’s 3

1/2% Convertible Subordinated Notes due February 15, 2009 as amended,

supplemented, extended, restated, renewed or otherwise modified from time to

time (“Convertible Notes”), and any other indebtedness of Borrower subordinated

to the Obligations by an instrument or agreement in form reasonably acceptable

to Trade Bank or by subordination language reasonably acceptable to Trade Bank

or by subordination language reasonably acceptable to Trade Bank in the

instrument evidencing such indebtedness.”

 

III.                                 The

TERMS:  Maturity section of EXHIBIT B, REVOLING CREDIT FACILITY SUPPLEMENT is

hereby deleted in its entirety, and the following substituted therefor:

 

“Maturity:  All Revolving Credit Loans will mature on

June 16, 2003.”

 

Except as specifically provided herein, all terms and conditions of the

Credit Agreement remain in full force and effect, without waiver or

modification. All terms defined in the Credit Agreement shall have the same

meaning when used in this Amendment. 

This Amendment and the Credit Agreement shall be read together, as one

document.

 

Borrower hereby remakes all representations and warranties contained in

the Credit Agreement and reaffirms all covenants set forth therein.  Borrower further certifies that as of the

date of this Amendment there exists no Event of Default as defined in the

Credit Agreement, nor any condition, act or event which with the giving of

notice or the passage of time or both would constitute any such Even of

Default.

 

1

 

IN WITNESS

WHEREOF, the parties hereto have caused this amendment to be executed as of the

day and year first written above.

 

 

	

  CYMER, INC.

  	

  WELLS FARGO HSBC TRADE BANK,

  NATIONAL ASSOCIATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

  /s/ Nancy J.

  Baker

  	

   

  	

  By:

  	

  /s/ Kollyn

  D. Kanz

  	

   

  
	

              Nancy

  J. Baker

  	

   

  	

  Kollyn Kanz

  
	

   

  	

   

  	

   

  
	

  Title:

  	

  Sr. Vice

  President and CFO

  	

   

  	

  Title:

  	

   Assistant Vice President

  	

    

  	 

											

 

2

 

	

  WELLS FARGO HSBC TRADE BANK

  	

   

  	

  REVOLVING CREDIT LOANS NOTE

  

 

 

	

  $10,000,000

  	

   

  	

  Los Angeles, California

  
	

   

  	

   

  	

  June 7, 2002

  

 

FOR VALUE RECEIVED, the

undersigned CYMER, INC., a Nevada corporation (“Borrower”) promises to pay to

the order of WELLS FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION (“Trade Bank”)

at its office at 333 So. Grand Avenue, 8th Floor, Los Angeles, CA

90071, or at such other place as the holder hereof may designate, in lawful

money of the United States of America and in immediately available funds, the

principal sum of Ten Million Dollars ($10,000,000), or so much thereof as may

be advanced and be outstanding, with interest thereon, to be computed on each

advance from the date of its disbursement (computed on the basis of a 360-day

year, actual days elapsed) either (i) at a fluctuating rate per annum equal to

the Prime Rate in effect from time to time, or (ii) at a fixed rate per annum

determined by WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) to be one and

three-quarters percent (1.75%) above Bank’s LIBOR in effect on the first day of

the applicable Fixed Rate Term. When interest is determined in relation to the

Prime Rate, each change in the rate of interest hereunder shall become

effective on the date each Prime Rate change is announced within Bank.  With respect to each LIBOR option selected

hereunder, Trade Bank is hereby authorized to note the date, principal amount,

interest rate and Fixed Rate Term applicable thereto and any payments made

thereon on Trade Bank’s books and records (either manually or by electronic

entry) and/or on any schedule attached to this Note, which notations shall be

prima facie evidence of the accuracy of the information noted.

 

1.             DEFINITIONS:  As used herein, the following terms shall

have the meanings set forth after each:

 

1.1           “Business

Day” means any day except a Saturday, Sunday or any other day

designated as a holiday under Federal or California statute or regulation.

 

1.2           “Fixed

Rate Term” means a period commencing on a Business Day and

continuing for thirty (30), sixty (60) or ninety (90) or one hundred eighty

(180) days, as designated by Borrower, during which all or a portion of the

outstanding principal balance of this Note bears interest determined in

relation to Bank’s LIBOR; provided however, that no Fixed Rate Term may be

selected for a principal amount less than One Hundred Thousand Dollars

($100,000); and provided further, that no Fixed Rate Term shall extend beyond

the scheduled maturity date hereof. If any Fixed Rate Term would end on a day

which is not a Business Day, then such Fixed Rate Term shall be extended to the

next succeeding Business Day.

 

1.3           “LIBOR”

means the rate per annum (rounded upward, if necessary, to the nearest whole

1/100 of 1%) and determined pursuant to the following formula:

 

	

  LIBOR

  	

  =

  	

  Base LIBOR

  
	

   

  	

   

  	

  100% - LIBOR

  Reserve Percentage

  

 

(a)           “Base LIBOR”

means the rate per annum for United States dollar deposits quoted by Bank as

the Inter-Bank Market Offered Rate, with the understanding that such rate is

quoted by Bank for the purpose of calculating effective rates of interest for

loans making reference thereto, on the first day of a Fixed Rate Term for delivery

of funds on said date for a period of time approximately equal to the number of

days in such Fixed Rate Term and in an amount approximately equal to the

principal amount to which such Fixed Rate Term applies.  Borrower understands and agrees that Bank

may base its quotation of the Inter-Bank Market Offered Rate upon such offers

or other market indicators of the Inter-Bank Market as Bank in its discretion

deems appropriate including, but not limited to, the rate offered for U.S.

dollar deposits on the London Inter-Bank Market.

 

(b)           “LIBOR

Reserve Percentage” means the reserve percentage prescribed by the

Board of Governors of the Federal Reserve System (or any successor) for

“Eurocurrency Liabilities” (as defined in Regulation D of the Federal Reserve

Board, as amended), adjusted by Bank for expected changes in such reserve

percentage during the applicable Fixed Rate Term.

 

1.4           “Prime Rate”

means at any time the rate of interest most recently announced within Bank at

its principal office in San Francisco as its Prime Rate, with the

understanding that the Prime Rate is one of Bank’s base rates and serves as the

basis upon which effective rates of interest are calculated for those loans

making reference thereto, and is evidenced by the recording thereof after its

announcement in such internal publication or publications as Bank may

designate.

 

2.             INTEREST:

 

2.1           Payment of Interest.  Interest accrued on this Note shall be

payable on the first day of each month, commencing July 1, 2002.

 

2.2           Selection of Interest Rate Options.  At any time any portion of this Note bears

interest determined in relation to Bank’s LIBOR, it may be continued by

Borrower at the end of the Fixed Rate Term applicable thereto so that all or a

portion thereof bears interest determined in relation to the Prime Rate or in

relation to Bank’s LIBOR for a new Fixed Rate Term designated by Borrower.  At any time any portion of this Note bears

interest determined in relation to the Prime Rate, Borrower may convert all or

a portion thereof so that it bears interest determined in relation to Bank’s

LIBOR for a Fixed Rate Term designated by Borrower.  At the time each advance is requested hereunder or Borrower

wishes to select the LIBOR option for all or a portion of the outstanding

principal balance hereof, and at the end of each Fixed Rate Term, Borrower

shall give Trade Bank notice specifying (a) the interest rate option 

 

 

3

 

 

selected by Borrower, (b) the principal amount subject thereto,

and (c) if the LIBOR option is selected, the length of the applicable Fixed

Rate Term.  Any such notice may be given

by telephone so long as, with respect to each LIBOR selection, (i) Trade Bank

receives written confirmation from Borrower not later than three (3) Business

Days after such telephone notice is given, and (ii) such notice is given to

Trade Bank prior to 10:00 a.m., California time, on the first day of the Fixed

Rate Term.  For each LIBOR option

requested hereunder, Trade Bank will quote the applicable fixed rate to

Borrower at approximately 10:00 a.m., California time, on the first day of the

Fixed Rate Term.  If Borrower does not

immediately accept the rate quoted by Trade Bank, any subsequent acceptance by

Borrower shall be subject to a redetermination by Trade Bank of the applicable

fixed rate; provided however, that if Borrower fails to accept any such rate by

11:00 a.m., California time, on the Business Day such quotation is given, then

the quoted rate shall expire and Trade Bank shall have no obligation to permit

a LIBOR option to be selected on such day. 

If no specific designation of interest is made at the time any advance

is requested hereunder or at the end of any Fixed Rate Term, Borrower shall be

deemed to have made a Prime Rate interest selection for such advance or the

principal amount to which such Fixed Rate Term applied.

 

3              ADDITIONAL

LIBOR PROVISIONS.

 

3.1           If Trade Bank at any

time shall determine that for any reason adequate and reasonable means do not

exist for ascertaining Bank’s LIBOR, then Trade Bank shall promptly give notice

thereof to Borrower.  If such notice is

given and until such notice has been withdrawn by Trade Bank, than (i) no new

LIBOR option may be selected by Borrower, and (ii) any portion of the

outstanding principal balance hereof which bears interest determined in

relation to Bank’s LIBOR, subsequent to the end of the Fixed Rate Term

applicable thereto, shall bear interest determined in relation to the Prime

Rate.

 

3.2           If any law, treaty,

rule, regulation or determination of a court or governmental authority or any

change therein or in the interpretation or application thereof (each, a “Change

in Law”) shall make it unlawful for Trade Bank (i) to make LIBOR options

available hereunder, or (ii) to maintain interest rates based on Bank’s LIBOR,

then in the former event, any obligation of Trade Bank to make available such

unlawful LIBOR options shall immediately be canceled, and in the latter event,

any such unlawful LIBOR-based interest rates then outstanding shall be converted,

at Trade Bank’s option, so that interest on the portion of the outstanding

principal balance subject thereto is determined in relation to the Prime Rate;

provided however, that if any such Change in Law shall permit any LIBOR-based

interest rates to remain in effect until the expiration of the Fixed Rate Term

applicable thereto, then such permitted LIBOR-based interest rates shall

continue in effect until the expiration of such Fixed Rate Term.  Upon the occurrence of any of the foregoing

events, Borrower shall pay to Trade Bank immediately upon demand such amounts

as may be necessary to compensate Trade Bank for any fines, fees, charges,

penalties or other costs incurred or payable by Trade Bank as a result thereof

and which are attributable to any LIBOR options made available to Borrower

hereunder, and any reasonable allocation made by Trade Bank among its

operations shall be conclusive and binding upon Borrower.

 

3.3           If any Change in Law

or compliance by Trade Bank with any request or directive (whether or not

having the force of law) from any central bank or other governmental authority

shall:

 

(a)           subject Trade Bank

to any tax, duty or other charge with respect to any LIBOR options, or change

the basis of taxation of payments to Trade Bank of principal, interest, fees or

any other amount payable hereunder (except for changes in the rate of tax on

the overall net income of Trade Bank); or

 

(b)           impose, modify or

hold applicable any reserve, special deposit, compulsory loan or similar

requirement against assets held by, deposits or other liabilities in or for the

account of, advances or loans by, or any other acquisition of funds by any

office of Trade Bank; or

 

(c)           impose on Trade Bank

any other condition;

 

and

the result of any of the foregoing is to increase the cost to Trade Bank of

making, renewing or maintaining any LIBOR options hereunder and/or to reduce

any amount receivable by Trade Bank in connection therewith, then in any such

case, Borrower shall pay to Trade Bank immediately upon demand such amounts as

may be necessary to compensate Trade Bank for any additional costs incurred by

Trade Bank and/or reductions in amounts received by Trade Bank which are

attributable to such LIBOR options.  In

determining which costs incurred by Trade Bank and/or reductions in amounts

received by Trade Bank are attributable to any LIBOR options made available to

Borrower hereunder, any reasonable allocation made by Trade Bank among its

operations shall be conclusive and binding upon Borrower.

 

4              BORROWING

AND REPAYMENT:

 

4.1           Borrowing and Repayment.  Borrower may from time to time during the

term of this Note borrow, partially or wholly repay its outstanding borrowings,

and reborrow, subject to all of the limitations, terms and conditions of this

Note and of any document executed in connection with or governing this Note;

provided however, that the total outstanding borrowings under this Note shall

not at any time exceed the principal amount stated above.  The unpaid principal balance of this

obligation at any time shall be the total amounts advanced hereunder by the

holder hereof less the amount of principal payments made hereon by or for any

Borrower, which balance may be endorsed hereon from time to time by the

holder.  The outstanding principal

balance of this Note shall be due and payable in full on June 16, 2003.

 

4.2           Advances.  Advances hereunder, to the total amount of

the principal sum stated above, may be made by the holder at the oral or

written request of Nancy J. Baker, any one acting alone, who are authorized to

request advances and direct the disposition of any advances until written

notice of the revocation of such authority is received by the holder at the

office designated above, or (b) any person, with respect to advances deposited

to the credit of any 

 

 

4

 

 

account of any Borrower with the holder, which advances, when so

deposited, shall be conclusively presumed to have been made to or for the

benefit of each Borrower regardless of the fact that persons other than those

authorized to request advances may have authority to draw against such

account.  The holder shall have no

obligation to determine whether any person requesting an advance is or has been

authorized by any Borrower.

 

4.3           Application of Payments.  Each payment made on this Note shall be

credited first, to any interest then due and second, to the outstanding

principal balance hereof.  All payments

credited to principal shall be applied first, to the outstanding principal

balance of this Note which bears interest determined in relation to the Prime

Rate, if any, and second, to the outstanding principal balance of this Note

which bears interest determined in relation to Bank’s LIBOR, with such payments

applied to the oldest Fixed Rate Term first.

 

4.4           Prepayment.

 

(a)           Prime Rate.  Borrower may prepay principal on any portion

of this Note which bears interest determined in relation to the Prime Rate at

any time, in any amount and without penalty.

 

(b)           LIBOR.  Borrower may prepay principal on any portion

of this Note which bears interest determined in relation to Bank’s LIBOR at any

time and in the minimum amount of One Hundred Thousand Dollars ($100,000);

provided however, that if the outstanding principal balance of such portion of

this Note is less than said amount, the minimum prepayment amount shall be the

entire outstanding principal balance thereof. 

In consideration of Trade Bank providing this prepayment option to

Borrower, or if any such portion of this Note shall become due and payable at

any time prior to the last day of the Fixed Rate Term applicable thereto by

acceleration or otherwise, Borrower shall pay to Trade Bank immediately upon

demand a fee which is the sum of the discounted monthly differences for each

month from the month of prepayment through the month in which such Fixed Rate

Term matures, calculated as follows for each such month:

 

(1)           Determine the amount

of interest which would have accrued each month on the amount prepaid at the

interest rate applicable to such amount had it remained outstanding until the

last day of the Fixed Rate Term applicable thereto.

 

(2)           Subtract from the

amount determined in (1) above the amount of interest which would have accrued

for the same month on the amount prepaid for the remaining term of such Fixed

Rate Term at Bank’s LIBOR in effect on the date of prepayment for new loans

made for such term and in a principal amount equal to the amount prepaid.

 

(3)           If the result

obtained in (2) for any month is greater than zero, discount that difference by

Bank’s LIBOR used in (2) above.

 

Each Borrower

acknowledges that prepayment of such amount may result in Trade Bank incurring

additional costs, expenses and/or liabilities, and that it is difficult to

ascertain the full extent of such costs, expenses and/or liabilities.  Each Borrower, therefore, agrees to pay the

above-described prepayment fee and agrees that said amount represents a

reasonable estimate of the prepayment costs, expenses and/or liabilities of

Trade Bank.  If Borrower fails to pay any

prepayment fee when due, the amount of such prepayment fee shall thereafter

bear interest until paid at a rate per annum two percent (2.00%) above the

Prime Rate in effect from time to time (computed on the basis of a 360-day

year, actual days elapsed).

 

5.             EVENTS OF DEFAULT:  This Note is made pursuant to and is subject

to the terms and conditions of that certain Credit Agreement between Borrower

and Trade Bank dated as of June 28, 2001, as amended from time to time (“Credit

Agreement”).  Any default in the payment

or performance of any obligation under this Note, or any defined event of

default under the Credit Agreement, shall constitute an “Event of Default”

under this Note.

 

6.             MISCELLANEOUS:

 

6.1           Remedies.  Upon the occurrence of any Event of Default,

the holder of this Note, at the holder’s option, may declare all sums of

principal and interest outstanding hereunder to be immediately due and payable

without presentment, demand, protest or notice of dishonor, all of which are

expressly waived by each Borrower, and the obligation, if any, of the holder to

extend any further credit hereunder shall immediately cease and terminate.  Each Borrower shall pay to the holder

immediately upon demand the full amount of all payments, advances, charges,

costs and expenses, including reasonable attorneys’ fees (to include outside

counsel fees and all allocated costs of the holder’s in-house counsel),

incurred by the holder in connection with the enforcement of the holder’s

rights and/or the collection of any amounts which become due to the holder

under this Note, and the prosecution or defense of any action in any way

related to this Note, including without limitation, any action for declaratory

relief, and including any of the foregoing incurred in connection with any

bankruptcy proceeding relating to any Borrower.

 

6.2           Obligations Joint and Several.  Should more than one person or entity sign

this Note as a Borrower, the obligations of each such Borrower shall be joint

and several.

 

 

5

 

 

6.3           Governing Law.  This Note shall be governed by and construed

in accordance with the laws of the State of California, except to the extent

Trade Bank has greater rights or remedies under Federal law, whether as a

national bank or otherwise, in which case such choice of California law shall

not be deemed to deprive Bank of any such rights and remedies as may be

available under Federal law.

 

 

“BORROWER”

 

CYMER, INC.

 

	

  By:

  	

  /s/ Nancy J. Baher

  
	

   

  	

  Nancy J. Baher

  
	

   

  	

   

  
	

  Title:

  	

  Sr. Vice President and CFO

  

 

	

  Borrower’s Address:

  16750 Via Del Campo Court

  San Diego, CA 92127

  

 

 

6

 

ADDENDUM TO PROMISSORY NOTE

 

 

                THIS ADDENDUM is attached to and made a part of that certain promissory

note executed by CYMER, INC., a Nevada corporation  (“Borrower”) and payable to WELLS FARGO HSBC TRADE BANK, NATIONAL

ASSOCIATION, or order, dated as of June 7, 2002, in the principal amount of Ten

Million Dollars ($10,000,000) (the “Note”).

 

                The following arbitration provision is hereby incorporated into the

Note:

 

ARBITRATION:

 

1.             Arbitration. 

The parties hereto agree, upon demand by any party, to submit to binding

arbitration all claims, disputes and controversies between or among them (and

their respective employees, officers, directors, attorneys, and other agents),

whether in tort, contract or otherwise arising out of or relating to in any way

(i) the loan and related loan and security documents which are the subject of

this Note and its negotiation, execution, collateralization, administration,

repayment, modification, extension, substitution, formation, inducement,

enforcement, default or termination; or (ii) requests for additional credit.

 

2.             Governing Rules.  Any arbitration proceeding will (i) proceed

in a location in California selected by the American Arbitration Association

(“AAA”); (ii) be governed by the Federal Arbitration Act (Title 9 of the United

States Code), notwithstanding any conflicting choice of law provision in any of

the documents between the parties; and (iii) be conducted by the AAA, or such

other administrator as the parties shall mutually agree upon, in accordance

with the AAA’s commercial dispute resolution procedures, unless the claim or

counterclaim is at least $1,000,000.00 exclusive of claimed interest,

arbitration fees and costs in which case the arbitration shall be conducted in

accordance with the AAA’s optional procedures for large, complex commercial

disputes (the commercial dispute resolution procedures or the optional

procedures for large, complex commercial disputes to be referred to, as

applicable, as the “Rules”).  If there

is any inconsistency between the terms hereof and the Rules, the terms and

procedures set forth herein shall control. 

Any party who fails or refuses to submit to arbitration following a

demand by any other party shall bear all costs and expenses incurred by such

other party in compelling arbitration of any dispute.  Nothing contained herein shall be deemed to be a waiver by any

party that is a bank of the protections afforded to it under 12 U.S.C. §91 or

any similar applicable state law.

 

3.             No Waiver; Provisional Remedies,

Self-Help and Foreclosure. 

The arbitration requirement does not limit the right of any party to (i)

foreclose against real or personal property collateral; (ii) exercise self-help

remedies relating to collateral or proceeds of collateral such as setoff or

repossession; or (iii) obtain provisional or ancillary remedies such as

replevin, injunctive relief, attachment or the appointment of a receiver,

before during or after the pendency of any arbitration proceeding.  This exclusion does not constitute a waiver

of the right or obligation of any party to submit any dispute to arbitration or

reference hereunder, including those arising from the exercise of the actions

detailed in sections (i), (ii) and (iii) of this paragraph.

 

4.             Arbitrator Qualifications and Powers.  Any arbitration proceeding in which the

amount in controversy is $5,000,000.00 or less will be decided by a single

arbitrator selected according to the Rules, and who shall not render an award

of greater than $5,000,000.00.  Any

dispute in which the amount in controversy exceeds $5,000,000.00 shall be

decided by majority vote of a panel of three arbitrators; provided however,

that all three arbitrators must actively participate in all hearings and

deliberations.  The arbitrator will be a

neutral attorney licensed in the State of California or a neutral retired judge

of the state or federal judiciary of California, in either case with a minimum

of ten years experience in the substantive law applicable to the subject matter

of the dispute to be arbitrated.  The

arbitrator will determine whether or not an issue is arbitratable and will give

effect to the statutes of limitation in determining any claim.  In any arbitration proceeding the arbitrator

will decide (by documents only or with a hearing at the arbitrator’s

discretion) any pre-hearing motions which are similar to motions to dismiss for

failure to state a claim or motions for summary adjudication.  The arbitrator shall resolve all disputes in

accordance with the substantive law of California and may grant any remedy or

relief that a court of such state could order or grant within the scope hereof

and such ancillary relief as is necessary to make effective any award.  The arbitrator shall also have the power to

award recovery of all costs and fees, to impose sanctions and to take such

other action as the arbitrator deems necessary to the same extent a judge could

pursuant to the Federal Rules of Civil Procedure, the California Rules of Civil

Procedure or other applicable law. 

Judgment upon the award rendered by the arbitrator may be entered in any

court having jurisdiction.  The

institution and maintenance of an action for judicial relief or pursuit of a

provisional or ancillary remedy shall not constitute a waiver of the right of

any party, including the plaintiff, to submit the controversy or claim to

arbitration if any other party contests such action for judicial relief.

 

5.             Discovery.  In any arbitration proceeding discovery will

be permitted in accordance with the Rules. 

All discovery shall be expressly limited to matters directly relevant to

the dispute being arbitrated and must be completed no later than 20 days before

the hearing date and within 180 days of the filing of the dispute with the

AAA.  Any requests for an extension of

the discovery periods, or any discovery disputes, will be subject to final

determination by the arbitrator upon a showing that the request for discovery

is essential for the party’s presentation and that no alternative means for

obtaining information is available.

 

6.             Class Proceedings and Consolidations.  The resolution of any dispute arising

pursuant to the terms of this Note shall be determined by a separate

arbitration proceeding and such dispute shall not be consolidated with other

disputes or included in any class proceeding.

 

7.             Payment Of Arbitration Costs And Fees.  The arbitrator shall award all costs and

expenses of the arbitration proceeding.

 

8.             Real Property Collateral; Judicial

Reference. 

Notwithstanding anything herein to the contrary, no dispute shall be

submitted to arbitration if the dispute concerns indebtedness secured directly

or indirectly, in whole or in part, by any real property unless (i) the holder

of the mortgage, lien or security interest specifically elects in writing to

proceed with the arbitration, or (ii) all parties to the arbitration waive any

rights or benefits that might accrue to them by virtue of the single action

rule statute of California, thereby agreeing that all indebtedness and

obligations of the parties, and all mortgages, liens and security interests

securing such indebtedness and obligations, shall remain fully valid and

enforceable.  If any such dispute is not

submitted to arbitration, the dispute shall be referred to a referee in

accordance with California Code of Civil Procedure Section 638 et seq., and

this general reference 

 

 

7

 

 

agreement is intended to

be specifically enforceable in accordance with said Section 638.  A referee with the qualifications required

herein for arbitrators shall be selected pursuant to the AAA’s selection

procedures.  Judgment upon the decision

rendered by a referee shall be entered in the court in which such proceeding

was commenced in accordance with California Code of Civil Procedure Sections

644 and 645.

 

                Miscellaneous.  To the maximum extent

practicable, the AAA, the arbitrators and the parties shall take all action

required to conclude any arbitration proceeding within 180 days of the filing

of the dispute with the AAA.  No

arbitrator or other party to an arbitration proceeding may disclose the

existence, content or results thereof, except for disclosures of information by

a party required in the ordinary course of its business or by applicable law or

regulation.  If more than one agreement

for arbitration by or between the parties potentially applies to a dispute, the

arbitration provision most directly related to the documents between the

parties or the subject matter of the dispute shall control.  This Note may be amended or modified only in

writing signed by each party hereto.  If

any provision of this Note shall be held to be prohibited by or invalid under

applicable law such provision shall be ineffective only to the extent of such

prohibition or invalidity, without invalidating the remainder of such provision

or any remaining provisions of this Note. 

This arbitration provision shall survive termination, amendment or

expiration of any of the documents or any relationship between the parties.

 

IN WITNESS WHEREOF, this

Addendum has been executed as of the same date as the Note.

 

 

 

 CYMER, INC.

 

 

	

  By:

  	

  /s/ Nancy J. Baher

  
	

   

  	

  Nancy J. Baher

  
	

   

  	

   

  
	

  Title:

  	

  Sr. Vice President and CFO

  

 

 

 

8Exhibit
10.23

 

CYMER,
INC.

REDUCTION IN
FORCE SEPARATION BENEFITS PLAN

SECTION
1.                            PURPOSE

This Plan (as
defined herein) is designed to provide separation pay and benefits to Eligible
Employees (as defined herein) of the Company (as defined herein) pursuant to
the terms and conditions set forth in this Plan.  The Plan is intended to be an employee welfare benefit plan, as
defined in Section 3(1) of ERISA (as defined herein) and shall be interpreted
to effectuate this intent.  This
document shall serve as both a plan document and summary plan description for
purposes of Title I of ERISA.

SECTION 2.                            EFFECTIVE DATE AND TERM

Any and all of the
Company’s policies and practices regarding severance benefits or similar
payments upon employment termination or position elimination with respect to
Eligible Employees, other than written employment or separation agreements with
the Company that provide severance benefits executed prior to the effective
date of this Plan, are hereby superseded by this Plan, effective as of April 1,
2001.  This plan will remain in effect
for the period from April 1, 2002 through March 31, 2003, at which time it
shall automatically terminate and cease to be in effect, unless earlier renewed
by the Board of Directors of Cymer, Inc.

SECTION
3.                            DEFINITIONS

(a)           “Base
Pay” means the Eligible Employee’s wages
earned on a weekly basis determined as of the Eligible Employee’s Termination
Date (as defined herein), excluding bonuses and commissions, and, if paid
hourly, is based on the average number of regularly scheduled hours worked per
week for the three months preceding the Termination Date.

(b)           “Board” means the Board of Directors of Cymer,
Inc.

(c)           “Cause”
means, with
respect to a particular Eligible Employee: 
(i) fraud, misappropriation,
embezzlement or other act of misconduct against the Company; (ii) conviction of
a felony; (iii) violation of any rules or regulations of any governmental or
regulatory body which has an adverse effect on the Company; (iv) a material
breach of the terms of the Eligible Employee’s employment obligations, or a
breach of the Eligible Employee’s duty not to engage in any transaction that
represents, directly or indirectly, self-dealing with the Company or any of the
Company’s affiliates, which has not been approved by the Company; (v)
unsatisfactory performance; (vi) violation of state or federal law in
connection with the Eligible Employee’s performance of his/her job; (vii) a
leave of absence exceeding the period allowed by contract, policy or applicable
law; or (viii) circumstances beyond the Company’s control including, but not
limited to, fire, flood, explosion, bombing, earthquake, and civil unrest.  Notwithstanding the foregoing, termination
of the Eligible Employee’s employment due to death or disability shall not be
considered termination for Cause.

(d)           “Committee”
means the
Committee of the Board (and any delegatee(s) of such Committee) established by
the Board to administer this Plan in accordance with its terms.

(e)           “Company” means Cymer, Inc. and its subsidiaries.

 

1

 

(f)            “Comparable
Position” 
means any position with the Company, regardless of title and
responsibilities, that is located within [50] miles of the location at which the Eligible Employee was performing his or her
duties immediately prior to his or her Termination Date and the compensation
for such position is within fifteen percent (15%) of Eligible Employee’s Base
Pay as of the Eligible Employee’s Termination Date.

(g)           “Eligible
Employee” means any non-temporary, full-time [or
part-time employee] (i.e., working at least 20 hours per week) of the Company
(specifically excluding any individual who is not treated by the Company as a
common law employee without regard to the characterization or recharacterization
of such individual’s status by any court or governmental agency), who is paid
from the Company’s United States payroll and who has been notified by the
Company that he or she is subject to Involuntary Termination Without Cause as a
result of a Reduction in Force and who has not been offered a Comparable
Position with the Company.  Employees
who do not return to work following a leave of absence prior to a Reduction in
Force and/or who begin receiving Long-Term Disability benefits are not eligible
for the benefits provided herein.

(h)           “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended.

(i)            “Involuntary
Termination  Without  Cause” means an employee’s dismissal or discharge by the Company for a reason
other than for Cause.  The termination
of an employee’s employment will not be deemed to be an “Involuntary
Termination Without Cause” if such termination either occurs as a result of the
employee’s death or disability, or is the result of the employee’s resignation
for any reason (including retirement).

(j)            “Participant”
means an Eligible
Employee who has fulfilled the requirements of Section 4 herein.

(k)           “Plan”
means this Cymer,
Inc. 2000 Separation Benefits Plan, as set forth in this instrument and as
amended from time to time.

(l)            “Reduction
in Force”
means the Involuntary Termination without Cause (as defined in the Plan) of the
employment of two (2) or more [full-time or part-time] employees of the Company
[within a ninety (90) day period] as a result of lack of work, lack of funds,
economic slowdowns, technological or structural changes in the Company’s
operations, or business, operational or other circumstances which necessitate a
reduction in the number of employees as a means of ensuring the financial
health, efficiency and viability of the Company on a short-term or long-term
basis.  The determination as to whether
a not a Reduction in Force has occurred under particular circumstances shall be
made by the Committee in its sole and exclusive discretion.

(m)          “Service
Date” means the Eligible Employee’s first date
of employment with the Company or, if rehired by the Company, the adjusted date
of employment based on the date of rehire.

(n)           “Termination  Date” means the date of the Eligible
Employee’s Involuntary Termination Without Cause.

 

2

 

(o)           “Years
of  Service” means the number of full years (i.e., a period of
twelve complete months) of service completed by the Eligible Employee from the
Service Date to the Termination Date.

SECTION 4.                            DEPARTURE AND ENTITLEMENT
PROCEDURE.

As a condition to
receiving the severance benefits described in Section 5, the Eligible Employee
must deliver to the Director, Human Resources, or his or her designee an
effective Release and return all Company property within five (5) days of the
Eligible Employee’s Termination Date. 
The Release is attached hereto as Exhibit A and is incorporated herein
by reference.  Employees shall receive
the Release upon the distribution of this Plan document.

 

SECTION 5.                            PARTICIPATION AND BENEFITS.

(a)           Severance
Benefits.  An Eligible Employee who timely returns
the signed Release described in Section 4 and meets the additional departure
conditions described in Section 4 shall become a Participant as of the
effective date of the Release and the following shall apply.

(i)            Severance
Payments.  The Participant shall receive a
[lump-sum] severance payment within [one (1) week (seven days)] of becoming a
Participant and the amount of such payment shall be based on the Participant’s
position level (as designated by the Company) and the Participant’s Years of
Service as of the Participant’s Termination Date as set forth below.

 

	
  POSITION LEVEL

  	
  SEVERANCE PAYMENTS

  
	
   

  	
   

  
	
  Director

  	
  4 months Base Salary
  plus

  
	
   

  	
  1 week Base Salary

  
	
   

  	
  per Year of Service

  
	
   

  	
   

  
	
  Manager

  	
  2
  months Base Salary plus

  
	
   

  	
  1 week Base Salary

  
	
   

  	
  per Year of Service

  
	
   

  	
   

  
	
  Senior Level Professional,

  	
  2 months Base
  Salary plus

  
	
  Individual Contributor

  	
  1 week Base Salary

  
	
   

  	
  per Year of Service

  
	
   

  	
   

  
	
  Supervisor

  	
  1 month Base Salary plus

  
	
   

  	
  1 week Base
  Salary

  
	
   

  	
  per Year of
  Service

  
	
   

  	
   

  
	
  Exempt or Technical

  	
  1 month Base Salary
  plus

  
	
  Employee

  	
  1 week Base
  Salary

  
	
   

  	
  per Year of
  Service

  
	
   

  	
   

  
	
  Non-Exempt Employee

  	
  1 week Base Salary

  
	
   

  	
  per Year of Service

  
	
   

  	
  (minimum 3 weeks Base
  Salary)

  

 

3

 

(ii)           Outplacement Assistance.  The Participant shall be eligible for outplacement
assistance provided by a vendor to be chosen by the Company at the Company’s
sole and exclusive discretion for the applicable period of time based on the
Participant’s position level (as designated by the Company) and Years of
Service as of the Participant’s Termination Date as set forth below.

	
  POSITION LEVEL

  	
  OUTPLACEMENT SERVICES

  
	
   

  	
   

  
	
  Director

  	
  3-months

  
	
   

  	
   

  
	
  Manager

  	
  1-month

  
	
   

  	
   

  
	
  Senior Level Professional,

  	
  1-month

  
	
  Individual Contributor

  	
   

  
	
   

  	
   

  
	
  Supervisor

  	
  2-day workshop

  
	
   

  	
   

  
	
  Exempt or Technical

  	
  2-day workshop

  
	
  Employee

  	
   

  
	
   

  	
   

  
	
  Non-Exempt Employee

  	
  2-day workshop

  

 

(iii)         Medical and Dental Coverage.  The Participant [and any dependents]
shall continue to receive the medical and dental coverage in effect as of the
Participant’s Termination Date for a period of four (4) weeks from the
Participant’s Termination Date and such coverage shall cease as of the last day
of the month in which such four week period expires.

(b)           Voluntary
Resignation/Termination for Cause. 
Notwithstanding any other provision of the Plan to the contrary, in no
event shall an Eligible Employee receive any payment hereunder if his or her
termination is for Cause or occurs as a result of his or her death or
disability, or is the result of his or her resignation for any reason
(including retirement).

(c)           “At
Will” Employment.  No provision of this Plan
alters a Participant’s “at will” employment status with the Company.

(d)           Offsets/Withholding.  Notwithstanding any other provision of the Plan to the
contrary, severance benefits received pursuant to this Plan shall be subject to
offset(s) and withholding as set forth below.

(i)            All severance benefits under this Plan shall be
subject to legal deductions and applicable withholding.

(ii)           The Company reserves the right to offset the benefits
payable under this Plan by any advanced monies the Participant owes the
Company.

(iii)         The benefits and amounts payable under this Plan shall
be reduced (but not below zero) by any severance pay or benefits to which an
Eligible Employee or Participant, as applicable, is or becomes entitled under
any other severance pay plan, agreement, policy or arrangement.

 

4

 

(iv)          There shall be no duplication of benefits under this
Plan.

The Committee shall
determine in its sole and exclusive judgment and discretion whether and in what
manner the provisions of this subsection 5(d) shall apply.

(e)           Loss
and Reduction of Benefits.  Notwithstanding any other provision of
the Plan to the contrary,  severance
benefits under this Plan shall terminate and/or shall be reduced as set forth
below.

(i)            If an Eligible Employee resigns for any reason prior
to his or her Termination Date, then he/she shall not be entitled to any
severance benefits hereunder.

(ii)           If, prior to the date on which the severance payment
described in subparagraph 5(a)(i) is paid, an Eligible Employee or Participant,
as applicable, is offered a Comparable Position with the Company, then he or
she will not receive the benefits described in subparagraph 5(a)(i)
irrespective of whether or not he or she accepts such Comparable Position.

(iii)         If, during the period represented by the severance
payment described in subparagraph 5(a)(i), a Participant is offered and accepts
a position (whether Comparable or not) with the Company, then he or she shall
not receive any further severance benefits under this Plan [and must repay the
portion of the lump sum representing the unexpired severance benefit payment].

(iv)          If a Participant receives severance benefits provided
hereunder, later accepts a position (whether Comparable or not) with the
Company and is subsequently subject to Involuntary Termination Without Cause as
a result of a Reduction in Force, then any severance benefits to which such
Participant becomes entitled under this Plan or any other severance pay plan,
agreement, policy or arrangement shall be reduced by the amount of the
severance payment, if any, previously received by such Participant pursuant to
subparagraph 5(a)(i) hereunder.

(v)            If, prior to the date on which the severance payment
described in subparagraph 5(a)(i) is paid, it is discovered that an otherwise
Eligible Employee or Participant, as applicable, engaged in conduct prior to or
following his or her Termination Date which would constitute Cause as defined
herein, then severance payments and applicable benefits shall cease immediately
and such Eligible Employee or Participant, as applicable, shall no longer be
entitled to any benefits hereunder.

The Committee shall
determine in its sole and exclusive judgment and discretion whether and in what
manner the provisions of this subsection 5(e) shall apply

(f)            Limitation
on Employee rights.  The Plan shall not give any employee of
the Company the right to be retained in the service of the Company or to
interfere with or restrict the right of the Company to discharge any employee
at any time, for any reason, with or without Cause.

SECTION
6.                            ADMINISTRATION AND OPERATION OF
THE PLAN

(a)           Plan
Sponsor  and  Administrator.  The Company is the “Plan Sponsor” and the “Plan
Administrator” of the Plan (as such terms are defined in ERISA) and shall have
responsibility for complying with any reporting and disclosure rules applicable
to the Plan under

 

5

 

ERISA.  In all other respects, except as provided
herein, the Plan shall be administered and operated by the Committee and its
delegatee(s).  The Committee is
empowered to construe and interpret the provisions of the Plan and to decide
all questions of eligibility for benefits under this Plan and shall make such
determinations in its sole and absolute discretion which shall be conclusive
and binding upon all persons.  The Committee
may at any time delegate to any other named person or body, or reassume
therefrom, any of its fiduciary responsibilities or administrative duties with
respect to this Plan.

(b)           The members of the Committee shall be the name
fiduciaries with respect to this Plan for purposes of Section 402 of ERISA.

(c)           The Committee may contract with one or more persons
including, but without limitation, actuaries, attorneys, accountants and
consultants to render advice with regard to any responsibility it has under the
Plan.

(d)           Subject to the limitations of this Plan, the Committee
shall from time to time establish such rules for the administration of this
Plan as it may deem desirable.

(e)           The Company shall, to the extent permitted by law, by
the purchase of insurance or otherwise, indemnify and hold harmless the members
of the Committee and each other fiduciary with respect to this Plan for
liabilities or expenses they and each of them incur in carrying out their
respective duties under the Plan, other than for any liabilities or expenses
arising out of such fiduciary’s gross negligence or willful misconduct.  A fiduciary shall not be responsible for any
breach of responsibility of any other fiduciary except to the extent provided
in Section 405 of ERISA.

SECTION
7.                            CLAIMS, INQUIRIES AND APPEALS

(a)           Applications
for  Benefits  and  Inquiries. 
Except as otherwise provided in this subsection 7(a), no application for
benefits is required to receive benefits under this Plan.  If an individual believes that he or she has
been wrongfully denied any benefits under this Plan, such individual shall
submit an application for benefits signed and in writing to:  Corporate Human Resources, Cymer, Inc.,
16750 Via Del Campo Court, San Diego, California 92127, who shall forward such
request to the Committee.

(b)           Denial
of  Claims.  If any application for
benefits is denied in whole or in part, the Committee must notify the claimant,
in writing, of the denial of the application, and of the claimant’s right to
review of the denial.  The written
notice of denial will be set forth in a manner designed to be understood, and
will include specific reasons for the denial, specific references to the Plan
provision upon which the denial is based, a description of any information or
material that the Committee needs to complete the review and an explanation of
the Plan’s review procedure.

(i)            This written notice will be provided to
the claimant within ninety (90) days after the Committee receives the
application, unless special circumstances require an extension of time, in
which case, the Committee has up to an additional ninety (90) days for
processing the application.  If an
extension of time for processing is required, written notice of the extension
will be furnished to the claimant before the end of the initial 90-day period.

 

6

 

(ii)           This notice of extension will describe the special
circumstances necessitating the additional time and the date by which the
Committee is to render its decision on the application.  If written notice of denial of the
application for benefits is not furnished within the specified time, the
application shall be deemed to be denied. 
The claimant will then be permitted to appeal the denial in accordance
with the review procedure described below.

(c)           Request
for  Review.  The claimant (or the
claimant’s authorized representative) may appeal a denied benefit claim by
submitting a written request for a review to: Corporate Human Resources, Cymer,
Inc., 16750 Via Del Campo Court, San Diego, California 92127, who shall forward
such request to the Committee.

(i)            Any appeal must be submitted within sixty (60) days
after the application is denied (or deemed denied).  The Committee will give the claimant (or the claimant’s
representative) an opportunity to review pertinent documents in preparing a
request for a review.

(ii)           A request for review must set forth all of the grounds
on which it is based, all facts in support of the request and any other matters
that the claimant or the claimant’s representative feel are pertinent.  The Committee may require the claimant or
the claimant’s representative to submit additional facts, documents or other
material as it may find necessary or appropriate in making its review.

(iii)         If the claimant wishes to submit additional
information in connection with an appeal from the denial (or deemed denial) of
benefits, the claimant may be required to do so at the claimant’s own expense.

(d)           Decision
on  Review.  The Committee will act on each
request for review within sixty (60) days after receipt of the request, unless
special circumstances require an extension of time (not to exceed an additional
sixty (60) days) for processing the request for a review.  If an extension for review is required,
written notice of the extension will be furnished within the initial 60-day
period.  The Committee will give written
notice of its decision to the applicant. 
In the event that the Committee confirms the denial of the application
for benefits in whole or in part, the notice will outline the specific Plan
provisions upon which the decision is based. 
If written notice of the Committee’s decision is not given within the
time prescribed above, the application will be deemed denied on review.

(e)           Exhaustion
of  Remedies.  No legal
action for benefits under the Plan may be brought until (i) a written
application for benefits has been submitted in accordance with the procedures
described above, (ii) the person claiming benefits has been notified by the
Committee that the application is denied (or the application is deemed denied
due to the Committee’s failure to act on it within the time prescribed), (iii)
a written request for a review of the application has been submitted in
accordance with the appeal procedure described above and (iv) the person
appealing the denial has been notified in writing that the Committee has denied
the appeal (or the appeal is deemed to be denied due to the Committee’s failure
to take any action on the claim within the time prescribed).

SECTION
8.                            BASIS OF PAYMENTS TO AND FROM THE
PLAN

All benefits under the Plan shall be paid by the
Company.  The Plan shall be unfunded and
benefits hereunder shall be paid only from the general assets of the Company.

 

7

 

SECTION
9.                            AMENDMENT AND TERMINATION

The Company reserves the right to amend or terminate
this Plan at any time; provided, however, that no amendment or
termination shall diminish benefits to which a Participant is currently
entitled under this Plan.  Any
termination, modification or other amendment of the Plan shall be only in
writing and signed by the President and Chief Operating Officer, Cymer, Inc..

SECTION
10.                     NON-ALIENATION OF BENEFITS

No Plan benefit may be anticipated, alienated, sold,
transferred, assigned, pledged, encumbered or charged, and any attempt to do so
will be void.

SECTION
11.                     LEGAL CONSTRUCTION

This Plan shall be
interpreted in accordance with ERISA and, to the extent not preempted by ERISA,
with the laws of the State of California.

SECTION
12.                     OTHER PLAN INFORMATION

Plan
Identification Number:  The Plan ID #501

Employer
Identification Number: 33-0175463

Ending
of the Plan’s Fiscal Year: December 31.

Agent
for the Service of Legal Process:  The Plan’s
agent for service of legal process is: 
Sr. Vice President, Human Resources, Cymer, Inc., 16750 Via Del Campo
Court, San Diego, California 92127.

SECTION
13.                     STATEMENT OF ERISA RIGHTS AND
DUTIES

(a)           Participants in this Plan (which is a welfare benefit
plan sponsored by the Company) are entitled to certain rights and protections
under ERISA, including the right to:

(i)            Examine, without charge, at the Plan Administrator’s
office and at other specified locations, such as work sites, all Plan documents
and copies of all documents filed by the Plan with the U.S. Department of
Labor, such as detailed annual reports;

(ii)           Obtain copies of all Plan documents and Plan
information upon written request to the Plan Administrator.  The Plan Administrator may make a reasonable
charge for the copies; and

(iii)         Receive a summary of the Plan’s annual financial
report, in the case of a plan which is required to file an annual financial
report with the Department of Labor. 
(Generally, all pension plans and welfare plans with 100 or more
participants must file these annual reports.)

(b)           In addition to creating rights for Plan participants,
ERISA imposes duties upon the people responsible for the operation of the
employee benefit plan.  The people who
operate the Plan, called “fiduciaries” of the Plan, have a duty to do so
prudently and in the interest of Plan participants and beneficiaries.

 

8

 

(c)           No one, including the Company or any other person, may
fire any person or otherwise discriminate against him or her in any way to
prevent him or her from obtaining a Plan benefit or exercising rights under
ERISA.  If a claim for a Plan benefit is
denied in whole or in part, the claimant must receive a written explanation of
the reason for the denial.  A claimant
has the right to have the Plan review and reconsider his or her claim.

(d)           Under ERISA, there are steps an employee can take to
enforce the above rights.  For instance,
if an employee request materials from the Plan and does not receive them within
30 days, he or she may file suit in a federal court.  In such a case, the court may require the Plan Administrator to
provide the materials and pay up to $100 a day until the employee receives the
materials, unless the materials were not sent because of reasons beyond the
control of the Plan Administrator.  If
an employee has a claim for benefits that is denied or ignored, in whole or in
part, he or she may file suit in a state or federal court.  If it should happen that the Plan
fiduciaries misuse the Plan’s money, or if an employee is discriminated against
for asserting his or her rights, he or she may seek assistance from the U.S.
Department of Labor, or file suit in a federal court.  The court will decide who should pay court costs and legal
fees.  If he or she is successful, the
court may order the person sued to pay these costs and fees.  If he or she is unsuccessful, the court may
order him or her to pay these costs and fees, for example, if it finds the
claim is frivolous.

(e)           If an employee has any questions about this statement
or about his or her rights under ERISA, he or she should contact the nearest
office of the Pension and Welfare Benefits Administration, U.S. Department of
Labor, listed in the telephone directory, or the Division of Technical
Assistance and Inquiries, Pension and Welfare Benefit Administration, U.S.
Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.

 

9

 

EXHIBIT A

RELEASE AND WAIVER OF CLAIMS

In consideration of the payments and other benefits set forth in
Section  4
of the Employment Agreement dated April 1, 2001, to which this form is
attached, I, [Employee], hereby furnish Cymer, Inc. (the “Company”), with the
following release and waiver (“Release and Waiver”).

I hereby release, and forever discharge the Company, its officers,
directors, agents, employees, stockholders, successors, assigns, affiliates,
parent, subsidiaries, and benefit plans (the “Releasees”), of and from any and
all claims, liabilities, demands, causes of action, costs, expenses, attorneys’
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known and unknown, suspected and unsuspected, disclosed
and undisclosed, arising at any time prior to and including my employment
termination date with respect to any claims relating to my employment and the
termination of my employment, including but not limited to, claims pursuant to
any federal, state or local law relating to employment, including, but not
limited to, discrimination claims, claims under the California Fair Employment
and Housing Act, Title VII of the 1964 Civil Rights Act, as amended, the
Americans with Disabilities Act, and the Federal Age Discrimination in
Employment Act of 1967, as amended (“ADEA”), or claims for wrongful
termination, breach of the covenant of good faith, contract claims, tort
claims, and wage or benefit claims, including but not limited to, claims for
salary, bonuses, commissions, stock, stock options, vacation pay, fringe
benefits, severance pay or any form of compensation.

I also acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: 
“A
general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the debtor.”  I
hereby expressly waive and relinquish all rights and benefits under that
section and any law of any jurisdiction of similar effect with respect to any
claims I may have against the Releasees.

I further acknowledge that I have been advised: (a) I have seven (7)
days following the execution of this Release and Waiver to revoke my consent to
this Release and Waiver; and (b) this Release and Waiver shall not be effective
until the seven (7) day revocation period has expired.

	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
        [Employee]

  

 

10

 

EXHIBIT A

RELEASE AND WAIVER OF CLAIMS

In consideration of the payments and other benefits set forth in
Section  4
of the Employment Agreement dated April 1, 2001, to which this form is
attached, I, [Employee], hereby furnish Cymer, Inc. (the “Company”), with the
following release and waiver (“Release and Waiver”).

I hereby release, and forever discharge the Company, its officers,
directors, agents, employees, stockholders, successors, assigns, affiliates,
parent, subsidiaries, and benefit plans (the “Releasees”), of and from any and
all claims, liabilities, demands, causes of action, costs, expenses, attorneys’
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known and unknown, suspected and unsuspected, disclosed
and undisclosed, arising at any time prior to and including my employment
termination date with respect to any claims relating to my employment and the
termination of my employment, including but not limited to, claims pursuant to
any federal, state or local law relating to employment, including, but not limited
to, discrimination claims, claims under the California Fair Employment and
Housing Act, Title VII of the 1964 Civil Rights Act, as amended, the Americans
with Disabilities Act, and the Federal Age Discrimination in Employment Act of
1967, as amended (“ADEA”), or claims for wrongful termination, breach of the
covenant of good faith, contract claims, tort claims, and wage or benefit
claims, including but not limited to, claims for salary, bonuses, commissions,
stock, stock options, vacation pay, fringe benefits, severance pay or any form
of compensation.

I also acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: 
“A
general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the debtor.”  I
hereby expressly waive and relinquish all rights and benefits under that
section and any law of any jurisdiction of similar effect with respect to any
claims I may have against the Releasees.

I acknowledge that, among other rights, I am waiving and releasing any
rights I may have under ADEA, that this Release and Waiver is knowing and
voluntary, and that the consideration given for this Release and Waiver is in
addition to anything of value to which I was already entitled as an executive
of the Company.  I further acknowledge
that I have been advised, as required by the Older Workers Benefit Protection
Act, that:  (a) the Release and Waiver
granted herein does not relate to claims which may arise after this Release and
Waiver is executed; (b) I have the right to consult with an attorney prior to
executing this Release and Waiver (although I may choose voluntarily not to do
so); and if I am over 40 years of age upon execution of this Release and
Waiver: (c) I have forty-five (45) days from the date of termination of my
employment with the Company in which to consider this Release and Waiver
(although I may choose voluntarily to execute this Release and Waiver earlier);
(d) I have seven (7) days following the execution of this Release and Waiver to
revoke my consent to this Release and Waiver; and (e) this Release and Waiver
shall not be effective until the seven (7) day revocation period has expired.

	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
        [Employee]

  

 

11

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