Document:

Varian Semiconductor Equipment Associates, Inc. 2006 Management Incentive Plan.

 EXHIBIT 10.8 
  
 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. 
  
 2006 MANAGEMENT INCENTIVE PLAN 
  

	I.	 	General Purpose of Plan 

  
 The Varian Semiconductor Equipment Associates, Inc. 2006 Management Incentive Plan is designed to assist the Company and its Subsidiaries in attracting, retaining, and
providing incentives to Eligible Employees and to align their interests with those of the Company’s stockholders by providing for the payment of Incentive Awards subject to the achievement of specified Performance Goals. 
  

	II.	 	Definitions 

  
 Terms not otherwise defined herein shall have the following meanings: 
  
 A. “Award Period” means the fiscal year of the Company, except to the extent the Board of Directors determines
otherwise. 
  
 B. “Base Salary” means as to any Award
Period, the Participant’s annualized salary on the last day of the Award Period. Such Base Salary shall be before both (i) deductions for taxes or benefits; and (ii) deferrals of compensation pursuant to Company-sponsored plans.

  
 C. “Board” means the Board of Directors of the
Company. 
  
 D. A “Change in Control” shall be deemed
to have occurred if: 
  
 (i) Any individual or group constituting
a “person,” as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (other than (a) the Company or any of its subsidiaries, or (b) any trustee or
other fiduciary holding securities under an employee benefit plan of the Company or of any of its subsidiaries), is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or more
of the combined voting power of the Company’s outstanding securities then entitled ordinarily (and apart from rights accruing under special circumstances) to vote for the election of directors; or 
  
 (ii) Continuing Directors cease to constitute at least a majority of the
Board; or 
  
 (iii) there occurs a reorganization, merger,
consolidation or other corporate transaction involving the Company (a “Transaction”), in each case with respect to which the stockholders of the Company immediately prior to such Transaction do not, immediately after the Transaction, own
more than 50% of the combined voting power of the Company or other corporation resulting from such Transaction; or 
  
 (iv) all or substantially all of the assets of the Company are sold, liquidated or distributed; provided, however, that a “Change in Control”
shall not be deemed to have occurred if, prior to the occurrence of a specified event that would otherwise constitute a Change in Control hereunder, the disinterested Continuing Directors then in office, by a majority vote thereof, determine that
the occurrence of such specified event shall not be deemed to be a Change in Control with respect to an Eligible Employee hereunder if the Change in Control results from actions or events in which an Eligible Employee is a participant in a capacity
other than solely as an officer, employee or director of the Company. 
  
 E. “Code” means the Internal Revenue Code of 1986, as amended. 
  
 F. “Committee” means the committee appointed by the Board to establish and administer the 2006 Plan as provided herein, which shall consist of two or more individuals, each of whom is an “outside
director” within the meaning of Section 162(m)(4)(c)(i) of the Code and regulations promulgated thereunder. Unless otherwise determined by the Board, the Compensation Committee of the Board shall be the Committee if it meets the
qualifications set forth in the preceding sentence. 
  

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 G. “Company” means Varian Semiconductor Equipment Associates, Inc., a Delaware corporation, and
its successors and assigns and any corporation which shall acquire substantially all of its assets. 
  
 H. “Covered Employee” means any Eligible Employee who is or may become a “covered employee” as defined in Section 162(m) of the
Code. 
  
 I. “Eligible Employee” means an employee
described in Section IV hereof. 
  
 J. “Incentive
Award” means an award payable to a Participant for an Award Period. 
  
 K. “Participant” means any Eligible Employee who has been selected to participate in the 2006 Plan for an Award Period. 
  
 L. “Performance Goals” means the goal(s) determined by the Committee, in its sole discretion, to be applicable to
a Participant eligible for an Incentive Award during an Award Period, and which, for any Award Period, may be selected from (i) earnings per share; (ii) return on average equity in relation to a peer group (the “Peer Group”) of
companies designated by the Committee; (iii) return on average assets in relation to the Peer Group; or (iv) such other performance goals as may be established by the Committee which may be based on earnings, earnings growth, earnings
before interest, taxes, depreciation and amortization (EBITDA), operating income, operating margins, revenues, expenses, stock price, market share, charge-offs, reductions in non-performing assets, regulatory compliance, satisfactory internal or
external audits, improvement of financial ratings, achievement of balance sheet or income statement objectives, net cash provided from continuing operations, stock price appreciation, total stockholder return, cost control, strategic initiatives,
market share, pre-tax or after-tax income, or any other objective goals established by the Committee, and may be absolute in their terms or measured against or in relationship to other companies comparably, similarly or otherwise situated. Such
performance goals may be particular to a Participant or the division, department, branch, line of business, Subsidiary or other unit in which the Participant works, or may be based on the performance of the Company generally, and may cover such
period as may be specified by the Committee. Such Performance Goals may be applied by excluding the impact of charges for restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring items, and the cumulative
effects of accounting changes, each as defined by accounting principles generally accepted in the United States. 
  
 M. “2006 Plan” means the Varian Semiconductor Equipment Associates, Inc. 2006 Management Incentive Plan as set forth herein and as hereafter
amended from time to time. 
  
 N. “Subsidiary” means a
corporation of which at least 50% of the total combined voting power of all classes of stock is owned by the Company, either directly or through one or more other Subsidiaries. 
  

	III.	 	Administration 

  
 The 2006 Plan shall be administered by the Committee. The Committee shall have plenary authority, in its discretion, to determine the terms of all Incentive Awards,
including, without limitation, the Eligible Employees to whom, and the time or times at which, Incentive Awards are made, the Award Period to which each Incentive Award shall relate, the actual dollar amount to be paid pursuant to an Incentive
Award, the Performance Goals to which payment of Incentive Awards will be subject, and when payments pursuant to Incentive Awards shall be made, which payments shall, without limitation, be made within 75 days after the end of an Award Period, or,
if later, within 75 days after the date specified in the Incentive Award, in each case on which date the Eligible Employee must be employed in order to receive the payment in question. In making such determinations, the Committee may take into
account the nature of the services rendered by the respective Eligible Employees, their present and potential contributions to the success of the Company and its Subsidiaries, and such other factors as the Committee in its discretion shall deem
relevant. Subject to the express provisions of the 2006 Plan, the Committee shall have plenary authority to interpret the 2006 Plan, to prescribe, amend, and rescind rules and regulations relating to it and to make all other determinations deemed
necessary or advisable for the administration of the 2006 Plan. The determinations of the Committee pursuant to its authority under the 2006 Plan shall be conclusive and binding. 
  

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	IV.	 	Eligibility 

  
 Incentive Awards for any Award Period may be granted only to executive officers of the Company or a Subsidiary, selected by the Committee in its sole discretion. 
  

	V.	 	Incentive Share Awards; Terms of Awards; Payment 

  
 A. The Committee shall, in its sole discretion, determine which Eligible Employees shall receive Incentive Awards. For each Award Period with respect to
which the Committee determines to make Incentive Awards, the Committee may by resolution establish one or more Performance Goals applicable to such Incentive Awards and the other terms and conditions of the Incentive Awards. Such Performance Goals
and other terms and conditions shall be established by the Committee in its sole discretion. Such Performance Goals shall be established within the first 90 days of the Award Period and before 25% of the Award Period has elapsed. Without intending
to limit the generality of the preceding provisions or to limit the authority of the Committee, the Committee may make Incentive Awards that provide for payment in two or more installments with the payment of each installment being conditioned upon
being employed on a specified date. 
  
 B. After the end of each
Award Period for which the Committee has granted Incentive Awards, the Committee shall determine the extent to which the Performance Goals established by the Committee for the Award Period have been achieved, shall make a written certification of
the amount of the payment to be made for each Incentive Award, and shall authorize the Company to make Incentive Award payments to Participants in accordance with the terms of the Incentive Awards, subject to such written certification. In no event
shall the amount paid to a Participant in accordance with the terms of an Incentive Award, by reason of Performance Goal achievement, exceed, for any Award Period, $3,000,000. Unless otherwise determined by the Committee, no Incentive Award payments
shall be made to a Participant unless the Participant is employed by the Company or a Subsidiary on the date that such incentive award payment is made or on the date upon which a Change in Control occurs. 
  
 C. The Committee may at any time, in its sole discretion, cancel an
Incentive Award or eliminate or reduce the amount payable pursuant to the terms of an Incentive Award without the consent of a Participant. The Committee may not increase the amount payable pursuant to an Incentive Award. 
  
 D. Incentive Award payments shall be subject to applicable federal, state,
and local withholding taxes and other applicable withholding in accordance with the Company’s payroll practices as are, from time-to-time, in effect. 
  
 E. The Committee shall have the power to impose such other restrictions on Incentive Awards as it may deem necessary or appropriate. 
  
 F. All obligations of the Company under the 2006 Plan, with respect to
Incentive Awards granted hereunder, shall be binding on any successor to the Company; and in the event of any acquisition, consolidation, merger or similar event involving substantially all of the business or assets of the Company, a pro rata
portion of Incentive Awards shall be paid to Participants based on the attainment of the applicable Performance Goals for such Incentive Awards for the portion of the applicable Award Period that has elapsed prior to such acquisition, consolidation,
merger or similar event. 
  

	VI.	 	Transferability 

  
 Incentive Awards shall not be subject to the claims of creditors and may not be assigned, alienated, transferred or encumbered in any way other than by will or pursuant
to the laws of descent and distribution. 
  

	VII.	 	Termination or Amendment 

  
 The Committee may amend, modify or terminate the 2006 Plan in any respect at any time without the consent of Participants, provided that except as provided in Section
V(C), no amendment or termination of the 2006 Plan after the end of an Award Period may adversely affect the rights of Participants with respect to their Incentive Awards for that Award Period. 
  

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	VIII.	 	Effective Date; Term of the 2006 Plan 

  
 The 2006 Plan shall be effective as of October 1, 2005, subject to Section IX(E), and shall remain in existence until it is terminated pursuant to Section VII. No
Incentive Awards may be awarded under the 2006 Plan after its termination. Termination of the 2006 Plan shall not affect any Incentive Awards outstanding on the date of termination and such awards shall continue to be subject to the terms of the
2006 Plan notwithstanding its termination. 
  

	IX.	 	General Provisions 

  
 A. The establishment of the 2006 Plan shall not confer upon any Eligible Employee any legal or equitable right against the Company or any Subsidiary,
except as expressly provided in the 2006 Plan. 
  
 B. The 2006
Plan does not constitute an inducement or consideration for the employment of any Eligible Employee, nor is it a contract between the Company, or any Subsidiary and any Eligible Employee. Participation in the 2006 Plan shall not give an Eligible
Employee any right to be retained in the employ of the Company or any Subsidiary. 
  
 C. Nothing contained in this 2006 Plan shall prevent the Committee from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required, and such arrangements may
be either generally applicable or applicable only in specific cases. 
  
 D. The 2006 Plan shall be governed, construed, and administered in accordance with the laws of the State of Delaware. 
  
 E. The effectiveness of the 2006 Plan is subject to the approval of the stockholders of the Company to the extent required by
Section 162(m)(4)(c)(ii) of the Code. No payment shall be made hereunder before such approval has been obtained. 
  
 F. The Committee may make grants to participants who are not Covered Employees without satisfying the requirements of Section 162(m) of the Code.

  

 4Form of Restricted Stock Agreement for Officers with Performance Vesting

 EXHIBIT 10.30 
  
 Form of Restricted Stock Agreement 
 for Officers with Performance Vesting 
  
 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. 
  
 Restricted Stock Agreement  
 Granted Under 2006 Stock Incentive Plan 
  
 This agreement evidences the grant by Varian Semiconductor Equipment Associates, Inc., a
Delaware corporation (the “Company”) on [            ], 200[    ] (the “Grant Date”) to
                         (the “Participant”) [            ]
shares (the “Shares”) of common stock, par value $0.01 per share, of the Company (the “Common Stock”), as “Restricted Stock” under the Company’s 2006 Stock Incentive Plan (the “Plan”). The vesting
schedule is set forth in Section 2 of Appendix A attached hereto. 
  
 Your
online acceptance indicates your agreement and understanding that this grant is subject to all the terms and conditions contained in Appendix A and the Plan. PLEASE BE SURE TO READ ALL OF APPENDIX A, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS
OF THIS AGREEMENT. 
  

	
	 VARIAN SEMICONDUCTOR
 EQUIPMENT ASSOCIATES, INC.

	
	  
	                     Gary E. Dickerson
                     Chief Executive Officer

 APPENDIX A 
  
 TERMS AND CONDITIONS OF RESTRICTED STOCK AGREEMENT 
  
 For valuable consideration, receipt of which is acknowledged, the parties hereto agree as follows: 
  

	 	1.	 	Issuance of Shares. 

  
 The Company shall issue to the Participant in consideration for the Participant’s past services and as a separate incentive in connection with his or
her employment and not in lieu of any salary or other compensation for his or her services, subject to the terms and conditions set forth in this Agreement and in the Plan,             
Shares of Common Stock. The Shares will be held in book entry by the Company’s transfer agent in the name of the Participant for that number of Shares issued to the Participant. The Company shall not be required (i) to transfer on its
books any of the Shares that have been transferred in violation of any of the provisions set forth in this Agreement or (ii) to treat as the owner of such Shares, or to pay dividends to, any transferee to whom such Shares have been transferred
in violation of any of the provisions of this Agreement. The Participant agrees that the Shares shall be subject to Forfeiture as set forth in Section 2 of this Agreement and the restrictions on transfer set forth in Section 3 of this
Agreement. 
  

	 	2.	 	Forfeiture. 

  
 (a) Except as otherwise provided in this Agreement or any other agreement between the Participant and the Company, the balance of the
Shares that are Unvested Shares (as defined below) at the time of the Participant’s termination of employment with the Company shall thereupon be forfeited and automatically transferred to and reacquired by the Company at no cost to the Company
(“Forfeiture”). The Participant hereby appoints the Secretary of the Company with full power of substitution, as the Participant’s true and lawful attorney-in-fact with irrevocable power and authority in the name and on behalf of the
Participant to take any action and execute all documents and instruments, including, without limitation, stock powers that may be necessary to transfer the Shares to the Company upon such termination of employment. 
  
 “Unvested Shares” means the total number of Shares multiplied by the Applicable
Percentage at the time of Forfeiture. The “Applicable Percentage” shall be: 
  
 (1) 75% on the first anniversary of Grant Date (the “First Vesting Date”), provided that the Company’s “Net income per
share—diluted” for the most recently completed fiscal year reflected on the Company’s consolidated statements of income included in the Company’s Annual Report on Form 10-K filed with respect to such fiscal year, equals or
exceeds [            ] (the “Vesting Metric”); and 
  
 (2) Following the First Vesting Date, if the Vesting Metric is equaled or exceeded as of the First Vesting Date, the Applicable Percentage
shall be 75%, less an additional 6.25% on the last day of each successive three-month period following the First Vesting Date until the fourth anniversary of Grant Date. 
  
 (b) In the event that the Participant’s employment with the Company terminates by reason of the
Participant’s disability (within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986 (the “Code”), provided that the Board of Directors of the Company (the “Board”) in its discretion may determine
whether a disability exists in accordance with uniform and non-discriminatory standards adopted by the Board from time to time), death or Retirement (as defined pursuant to the Company’s or the Board’s Retirement Policies, as they may be
established from time to time), the balance of the Shares that have not vested as of immediately prior to the Participant’s death, disability or Retirement shall be fully vested effective as of the date of such death, disability or Retirement.

  
 (c) If the Participant is employed by a
parent or subsidiary of the Company, any references in this Agreement to employment with the Company or termination of employment by or with the Company shall instead be deemed to refer to such parent or subsidiary. 
  
  

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	 	3.	 	Restrictions on Transfer. 

  
 (a) The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise
(collectively “transfer”) any Shares, or any interest therein, that are subject to Forfeiture, except that the Participant may transfer such Shares (i) to or for the benefit of any spouse, children, parents, siblings, grandchildren
and any other relatives approved by the Board (collectively, “Approved Relatives”) or to a trust established solely for the benefit of the Participant and/or Approved Relatives, provided that such Shares shall remain subject to this
Agreement (including without limitation the restrictions on transfer set forth in this Section 3 and Forfeiture) and such permitted transferee shall, as a condition to such transfer, deliver to the Company a written instrument confirming that
such transferee shall be bound by all of the terms and conditions of this Agreement or (ii) as part of the sale of all or substantially all of the shares of capital stock of the Company (including pursuant to a merger or consolidation),
provided that, in accordance with the Plan, the securities or other property received by the Participant in connection with such transaction shall remain subject to this Agreement. 
  

	 	4.	 	Provisions of the Plan. 

  
 (a) This Agreement is subject to the provisions of the Plan, a copy of which is furnished to the Participant with this Agreement.

  
 (b) As provided in the Plan, upon the
occurrence of a Reorganization Event (as defined in the Plan), the repurchase and other rights of the Company hereunder shall inure to the benefit of the Company’s successor and shall apply to the cash, securities or other property which the
Shares were converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as they applied to the Shares under this Agreement. If, in connection with a Reorganization Event, a portion of the cash,
securities and/or other property received upon the conversion or exchange of the Shares is to be placed into escrow to secure indemnification or similar obligations, the mix between the vested and unvested portion of such cash, securities and/or
other property that is placed into escrow shall be the same as the mix between the vested and unvested portion of such cash, securities and/or other property that is not subject to escrow. 
  

	 	5.	 	Withholding Taxes; Section 83(b) Election. 

  
 (a) The Participant acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the
Participant any federal, state or local taxes of any kind required by law to be withheld with respect to the issuance of the Shares to the Participant or the vesting of any Shares. The Participant acknowledges and agrees that the Company may elect
to satisfy any such income tax withholding requirement by causing Shares to be sold on the Participant’s behalf at each vesting date in an amount sufficient to satisfy any tax withholding resulting from such vesting. 
  
 (b) The Participant has reviewed with the Participant’s
own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. The Participant is relying solely on such advisors and not on any statements or representations of the
Company or any of its agents. The Participant understands that the Participant (and not the Company) shall be responsible for the Participant’s own tax liability that may arise as a result of this investment or the transactions contemplated by
this Agreement. The Participant understands that it may be beneficial in many circumstances to elect to be taxed at the time the Shares are purchased rather than when and as the Company’s Purchase Option expires by filing an election under
Section 83(b) of the Code with the I.R.S. within 30 days from the date of purchase. 
  
 THE PARTICIPANT ACKNOWLEDGES THAT IT IS SOLELY THE PARTICIPANT’S RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE
ELECTION UNDER SECTION 83(b), EVEN IF THE PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE PARTICIPANT’S BEHALF. 
  

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	 	6.	 	Miscellaneous. 

  
 (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting of the Shares pursuant to Section 2
hereof is earned only by continuing service as an employee at the will of the Company (not through the act of being hired or being issued Shares hereunder). The Participant further acknowledges and agrees that the transactions contemplated hereunder
and the vesting schedule set forth herein do not constitute an express or implied promise of continued engagement as an employee or consultant for the vesting period, for any period, or at all. 
  
 (b) Severability. The invalidity or unenforceability
of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law. 
  
 (c) Waiver. Any provision for the benefit of the
Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board. 
  
 (d) Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Company and the Participant and their
respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 3 of this Agreement. 
  
 (e) Notice. All notices required or permitted hereunder shall be in writing and deemed effectively
given upon personal delivery or five days after deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto at the address shown beneath his or its respective signature to this
Agreement, or at such other address or addresses as either party shall designate to the other in accordance with this Section 6(e). 
  
 (f) Pronouns. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa. 
  
 (g) Entire Agreement. This Agreement and the Plan constitute the entire agreement between the parties, and supersedes all prior
agreements and understandings, relating to the subject matter of this Agreement. 
  
 (h) Amendment. This Agreement may be amended or modified only by a written instrument executed by both the Company and the
Participant. 
  
 (i) Governing Law. This
Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the State of Delaware without regard to any applicable conflicts of laws. 
  
 (j) Participant’s Acknowledgments. The Participant acknowledges that he or she: (i) has
read this Agreement; (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Participant’s own choice or has voluntarily declined to seek such counsel; (iii) understands the
terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of WilmerHale, is acting as counsel to the Company in connection with the transactions
contemplated by the Agreement, and is not acting as counsel for the Participant. 
  

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