Document:

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                                                                 EXHIBIT 10.08.3
                                                CONFIDENTIAL TREATMENT REQUESTED

              2002 2H FORMFACTOR, INC. DIRECT SALES INCENTIVE PLAN
                                     Rev 1.0

TERM:             June 30, 2002 through December 28, 2002.

DEFINITIONS:

-        TARGETED COMMISSION PLAN (TC). The amount of compensation (aka
         "Commissions") due to the individual sales person when 100% of the
         target booking plan and MBO's are achieved.

-        TARGET BOOKINGS (TB). (aka "Quota") The amount of bookings that must be
         achieved to receive the target bonus.

-        TARGET BOOKINGS COMPONENT (TC-B): The portion of the Target commission
         plan allocated to the bookings quota achieved.

-        TARGET MBO COMPONENT (TC-M): The portion of the Target commission plan
         allocated to the MBO achieved

-        RATE PER DOLLAR BOOKED. The percentage of commission earned per dollar
         of booking achieved.

-        INCENTIVE RATE (IR): The percentage of the sales person's base salary
         used to calculate the TC.

DIRECT SALES INCENTIVE PLAN

The incentive plan is structured to pay 100% of a set commission based on the
following guidelines:

1.       The targeted commission (TC) is separated into a bookings component and
         an MBO component. The bookings component (TC-B) is ***% of the targeted
         commission plan and the MBO component (TC-M) is ***% of the TC.

2.       As 0-***% of the TB is achieved, a total of ***% of the TC-B will be
         paid to the respective sales person.

3.       The last ***% of the TB achieved will result in ***% of the targeted
         bookings component plan being paid to the respective sales person.

4.       There will be no cap on this incentive plan. For instances where the TC
         or TB is exceeded, the following will apply:

         -        The same rate per dollar booked as the last ***% of the target
                  income will be applied to all bookings achieved in excess of
                  the TB.

5.       The Direct Sales Incentive Plan is split into two 1/2 year plans.
         There will be separate TB set for each 1/2 year time period and
         separate MBOs for each 1/2 year time period.

6.       The VP of Worldwide Sales shall set the target bookings plan for each
         region and each individual sales person. These plans shall be published
         no later than 30 days after the beginning of the 1st and 3rd quarters.

7.       By mutual agreement with the VP of Worldwide Sales, each sales person
         will be assigned ***-*** MBOs for each 1/2 year. Each MBO will be
         weighted. Upon approval by the VP of Worldwide Sales, MBOs may be
         modified prior to the end of the 1/2 year period.

8.       The VP of Worldwide Sales, with approval from the VP of Finance, shall
         set the Incentive Rate (IR) for each sales person. The IR shall be
         percentage of the sales person's base salary and the rate shall be
         determined by the level of responsibility of the sales person and the
         size of the region. The standard IR are:

         a.       VP - 85%

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* * * Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *****. A complete version of this exhibit
has been filed separately with the Securities and Exchange Commission.
<PAGE>
         b.       Director/Regional Manager - ***-***%

         c.       Sr. Account Manager/Major Account Manager: ***-***%

         d.       Account Manager: ***-***%

9.       Changes to the Sales Compensation Plan shall be approved by the VP of
         Worldwide Sales and the VP of Finance.

Example: Joe H. Salesman's base salary is $*** and his IR is ***%. For the 1/2
year, Joe's TC is $*** ($***Kx***%x1/2 year). The TC-B is ***% or $***. The TC-M
is ***% or $***. The TB for the 1/2 year for Joe H. Salesman is $***M. ***% of
the TB is $***M and Joe will earn ***% of the TC-B or $*** once he achieves the
$***M in bookings (rate paid = ***% on every dollar booked up to $***M). Once
Joe exceeds $***M in bookings, he will be paid at a rate of ***%
(***%*$***/***%*$***M) with no cap on the bookings. Joe will also have *** MBOs
assigned for the half year. Each was weighted a ***%. For each MBO achieved, Joe
will earn $*** (***% x $***).

In this example, Joe books $*** and achieves *** of *** of his MBOs. Joe will be
paid in total:

$***M * *** = $***
$***M * *** = $***
$***M * *** = $***
*** MBO * $*** = $***
Total Incentive Due for 1/2 Year = $***

ADDITIONAL GUIDELINES:

1.       All direct sales personnel are eligible for the commission plan and
         will be paid on a pro rata basis as of the date of their employment.

2.       Commissions shall be paid within 45 days of the close of the quarter.

3.       Territories and assigned accounts will determine the basis of the
         targeted commission plan.

4.       The VP of Worldwide Sales will determine how much credit is awarded for
         account managers with multinational accounts and split commissions as
         part of their respective responsibilities.

5.       Any receivables not collected will be debooked from the salespersons
         totals in the following period.

/s/ Peter Mathews                                    /s/ Michael Ludwig
-------------------------                            ---------------------------
Submitted & Approved                                 Approved
Peter Mathews                                        Michael Ludwig
VP Worldwide Sales                                   VP Finance

FormFactor, Inc. Confidential          2

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* * * Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *****. A complete version of this exhibit
has been filed separately with the Securities and Exchange Commission.<PAGE>
                                                                 EXHIBIT 10.08.4
                                                CONFIDENTIAL TREATMENT REQUESTED

              2003 1H FORMFACTOR, INC. DIRECT SALES INCENTIVE PLAN
                                     Rev 2.0

TERM: December 29, 2002 through June 28, 2003.

DEFINITIONS:

-     TARGETED COMMISSION PLAN (TC). The amount of compensation (aka
      "Commissions") due to the individual sales person when 100% of the target
      booking plan and MBO's are achieved.

-     TARGET BOOKINGS (TB). (aka "Quota") The amount of bookings that must be
      achieved to receive the target bonus.

-     TARGET BOOKINGS COMPONENT (TC-B): The portion of the Target commission
      plan allocated to the bookings quota achieved.

-     TARGET MBO COMPONENT (TC-M): The portion of the Target commission plan
      allocated to the MBO achieved

-     RATE PER DOLLAR BOOKED. The percentage of commission earned per dollar of
      booking achieved.

-     INCENTIVE RATE (IR): The percentage of the sales person's base salary used
      to calculate the TC.

DIRECT SALES INCENTIVE PLAN

The incentive plan is structured to pay 100% of a set commission based on the
following guidelines:

1.    The targeted commission (TC) is separated into a bookings component and an
      MBO component. The bookings component (TC-B) is ***% of the targeted
      commission plan and the MBO component (TC-M) is ***% of the TC.

2.    As 0-***% of the TB is achieved, a total of ***% of the TC-B will be paid
      to the respective sales person.

3.    The last ***% of the TB achieved will result in ***% of the targeted
      bookings component plan being paid to the respective sales person.

4.    There will be no cap on this incentive plan. For instances where the TC or
      TB is exceeded, the following will apply:

      -     The same rate per dollar booked as the last ***% of the target
            income will be applied to all bookings achieved in excess of the TB.

5.    The Direct Sales Incentive Plan is split into two 1/2 year plans. There
      will be separate TB set for each 1/2 year time period and separate MBOs
      for each 1/2 year time period.

6.    The VP of Worldwide Sales shall set the target bookings plan for each
      region and each individual sales person. These plans shall be published no
      later than 30 days after the beginning of the 1st and 3rd quarters.

7.    By mutual agreement with the VP of Worldwide Sales, each sales person will
      be assigned ***-*** MBOs for each 1/2 year. Each MBO will be weighted.
      Upon approval by the VP of Worldwide Sales, MBOs may be modified prior to
      the end of the 1/2 year period.

8.    The VP of Worldwide Sales, with approval from the VP of Finance, shall set
      the Incentive Rate (IR) for each sales person. The IR shall be percentage
      of the sales person's base salary and the rate shall be determined by the
      level of responsibility of the sales person and the size of the region.
      The standard IR are:

      a.    VP - 85%

------------
* * * Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *****. A complete version of this exhibit
has been filed separately with the Securities and Exchange Commission.

<PAGE>

      b.    Director/Regional Manager - ***-***%

      c.    Sr. Account Manager/Major Account Manager: ***-***%

      d.    Account Manager: ***-***%

9.    Changes to the Sales Compensation Plan shall be approved by the VP of
      Worldwide Sales and the VP of Finance.

Example: Joe H. Salesman's base salary is $*** and his IR is ***%. For the 1/2
year, Joe's TC is $*** ($***Kx***%x1/2 year). The TC-B is ***% or $***. The TC-M
is ***% or $***. The TB for the 1/2 year for Joe H. Salesman is $***M. ***% of
the TB is $***M and Joe will earn ***% of the TC-B or $*** once he achieves the
$***M in bookings (rate paid = ***% on every dollar booked up to $***M). Once
Joe exceeds $***M in bookings, he will be paid at a rate of ***%
(***%*$***/***%*$***M) with no cap on the bookings. Joe will also have *** MBOs
assigned for the half year. Each was weighted a ***%. For each MBO achieved, Joe
will earn $*** (***% x $***).

In this example, Joe books $*** and achieves *** of *** of his MBOs. Joe will be
paid in total:

$***M * *** = $***
$***M * *** = $***
$***M * *** = $***
*** MBO * $*** = $***
Total Incentive Due for 1/2 Year = $***

ADDITIONAL GUIDELINES:

1.    All direct sales personnel are eligible for the commission plan and will
      be paid on a pro rata basis as of the date of their employment.

2.    Commissions shall be paid within 45 days of the close of the quarter.

3.    Territories and assigned accounts will determine the basis of the targeted
      commission plan.

4.    The VP of Worldwide Sales will determine how much credit is awarded for
      account managers with multinational accounts and split commissions as part
      of their respective responsibilities.

5.    Any receivables not collected will be debooked from the salespersons
      totals in the following period.

/s/ Peter Mathews                         /s/ Michael Ludwig
---------------------------              ---------------------------
Submitted & Approved                     Approved
Peter Mathews                            Michael Ludwig
VP Worldwide Sales                       VP Finance

                                        2

------------
* * * Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *****. A complete version of this exhibit
has been filed separately with the Securities and Exchange Commission.

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