Document:

Exhibit 10.5

 

FEI COMPANY

EMPLOYEE SHARE PURCHASE PLAN

As amended effective May 17, 2007

 

1.     Purpose
of the Plan. FEI Company (the “Company”) believes that ownership of
shares of its Common Stock by employees of the Company and its Participating
Subsidiaries (hereinafter defined) is desirable as an incentive to better
performance and improvement of profits, and as a means by which employees may
share in the rewards of growth and success. The purpose of this Employee Share
Purchase Plan (the “Plan”) is to provide a convenient means by which employees
of the Company and Participating Subsidiaries may purchase the Company’s shares
through payroll deductions and a method by which the Company may assist and
encourage such employees to become share owners.

 

2.     Shares
Reserved for the Plan. There are 2,450,000 shares of the Company’s
authorized Common Stock reserved for issuance under the Plan. The number of
shares reserved for issuance under the Plan is subject to adjustment in the
event of any stock dividend, stock split, combination of shares,
recapitalization or other change in the outstanding Common Stock of the
Company. The determination of whether an adjustment shall be made and the
manner of any such adjustment shall be made by the Board of Directors of the Company,
which determination shall be conclusive.

 

3.     Administration
of the Plan. The Plan shall be administered by the Board of
Directors. The Board of Directors may promulgate rules and regulations for
the operation of the Plan, adopt forms for use in connection with the Plan, and
decide any question of interpretation of the Plan or rights arising thereunder.
The Board of Directors may consult with counsel for the Company on any matter
arising under the Plan. All determinations and decisions of the Board of
Directors shall be conclusive. Notwithstanding the foregoing, the Board of
Directors, if it so desires, may delegate to the Compensation Committee of the
Board the authority for general administration of the Plan.

 

4.     Eligible
Employees. Except as indicated below, all full-time employees of the
Company and all full-time employees of each of the Company’s subsidiary
corporations which is designated by the Board of Directors of the Company as a
participant in the Plan (such participating subsidiary being hereinafter called
a “Participating Subsidiary”) are eligible to participate in the Plan. Any
employee who would, after a purchase of shares under the Plan, own or be deemed
(under Section 424(d) of the Internal Revenue Code of 1986, as
amended (the “Code”)) to own stock (including stock subject to any outstanding
options held by the employee) possessing five percent or more of the total
combined voting power or value of all classes of stock of the Company or any
parent or subsidiary of the Company, shall be ineligible to participate in the
Plan. A “full-time employee” is one who is in the active service of the Company
or a Participating Subsidiary excluding, however, any employee whose customary
employment is 20 hours or less per week or whose customary employment is for
not more than five months per calendar year.

 

5.     Offerings.

 

(a)   Offering
Periods. The Plan shall be implemented by a series of offering
periods of approximately twelve months’ duration or such other duration as the
Board of Directors shall determine (“Offering Periods”), commencing on March 1
and September 1 of each year and ending on the last day of February or
August, respectively, occurring thereafter. The initial Offering Period shall
commence on March 1, 1998 and shall end on February 28, 1999.
Notwithstanding the foregoing, the Board of Directors may establish a different
duration for one or more future Offering Periods, provided, however, that no
Offering Period may have a duration exceeding twenty-seven (27) months. Each
Offering Period shall be comprised of a series of two purchase periods (“Purchase
Periods”), as provided in clause (b) below. The first day of each Offering
Period is an “Offering Date” and the last day of each Purchase Period is a “Purchase
Date” for the Offering Period. If an Offering Date or a Purchase Date falls on
a day on which the public equity securities markets in the United States are
not open for trading, the Company shall, by announcement at least ten days
before the date on which the Offering Date or Purchase Date would otherwise
fall, specify the trading day that will be deemed that Offering Date, or
Purchase Date, as the case may be. As of each Offering Date, the Company hereby
grants to each eligible employee a right under the Plan to purchase shares of Common
Stock on the Purchase Date for the price determined under paragraph 7 of
the Plan exclusively through payroll deductions authorized under
paragraph 6 of the Plan; provided, however, that (a) no such right
shall permit 

 

1

 

the purchase of more than 1,000
shares, and (b) no such right shall allow an employee’s right to purchase
shares under all stock purchase plans of the Company and its parents and
subsidiaries to which Section 423 of the Code applies to accrue at a rate
that exceeds $25,000 of fair market value of shares (determined at the Offering
Date) for each calendar year in which such right is outstanding.

 

(b)   Purchase
Periods. Each Offering Period shall consist of two (2) consecutive
Purchase Periods of approximately six (6) months’ duration, or such other
number or duration as the Board shall determine. A Purchase Period commencing
on or about March 1 shall end on or about the next August 31. A
Purchase Period commencing on or about September 1 shall end on or about
the next February 28. Notwithstanding the foregoing, the Board may
establish a different duration for one or more future Purchase Periods or
different commencing or ending dates for such Purchase Periods.

 

6.     Participation in the Plan.

 

(a)   Initiating
Participation. An eligible employee may participate in an
Offering Period under the Plan by filing with the Company no later than the
close of business on the Offering Date, on forms furnished by the Company, a
subscription and payroll deduction authorization. Once filed, a subscription
and payroll deduction authorization shall remain in effect for subsequent
Offering Periods unless amended or terminated. The payroll deduction
authorization will take effect on the Offering Date or, if later, on the first
payroll effective date that is at least three business days after the date on
which it was filed, and will authorize the employing entity to make payroll
deductions in the specified amount from each paycheck of the participating
employee. Payroll deductions for any Purchase Period may not exceed
15 percent of the gross amount of base pay plus commissions, if any, in
the aggregate payable to the employee for such Purchase Period. If a payroll
deduction is made by a Participating Subsidiary, that entity will promptly
remit the amount of the deduction to the Company. Eligible employees may not
participate simultaneously in more than one Offering Period.

 

(b)   Amending or
Terminating Participation. A participating employee may amend
his or her payroll deduction authorization once during any Purchase Period, to
reduce the amount of future payroll deductions, with effect during the
remaining part of the Purchase Period. Other amendments to the payroll
deduction authorization will not become effective until the next following
Purchase Period. A permitted change in payroll deductions shall be effective
for any pay period only if written notice is received by the Company at least
three business days prior to the payroll effective date published by the Company
for that pay period. After an employee has begun participating in the Plan, he
or she may terminate participation in the Plan by written notice received by
the Company at any time up to the tenth day before a Purchase Date.
Participation in the Plan shall also terminate when a participant ceases to be
an eligible employee for any reason, including death or retirement.
Determination of when the employment relationship terminates for this purpose
shall be made under Section 1.421-7 of U.S. Treasury Regulations or
successor regulations. A participant may not reinstate participation in the
Plan with respect to a particular Offering Period after once terminating
participation in the Plan with respect to that Offering Period. Upon
termination of a participant’s participation in the Plan, all amounts deducted
from the participant’s pay and not previously used to purchase shares under the
Plan shall be returned to the participant.

 

(c)   Automatic
Withdrawal from an Offering Period. If the fair market value of
a share of Common Stock on a Purchase Date other than the final Purchase Date
of an Offering Period is less than the fair market value of a share of Common
Stock on the Offering Date of the Offering Period, then every participant shall
be (a) automatically withdrawn from such Offering Period at the close of
such Purchase Date and after the acquisition of shares of Common Stock for the
Purchase Period and (b) enrolled in the Offering Period commencing on the
first business day subsequent to such Purchase Date. A participant may elect
not to be automatically withdrawn from an Offering Period pursuant to this
paragraph 6(c) by delivering to the Company not later than the close of
business on the Purchase Date a written notice indicating such election.

 

7.     Option
Price. The price at which shares shall be purchased in an Purchase
Period shall be the lower of (a) 85% of the fair market value of a share
of Common Stock on the Offering Date of the applicable Offering Period or (b) 85%
of the fair market value of a share of Common Stock on that Purchase Date. The
fair market value of a share of Common Stock on any date shall be the closing
price of the Common Stock for such date as reported by the Nasdaq National
Market or, if the Common Stock is not reported on the Nasdaq National Market,
such other reported value of the Common Stock as shall be specified by the
Board of Directors.

 

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8.     Newly
Eligible Employees. A person who becomes an eligible employee after
the Offering Date of an Offering Period shall not be eligible to participate in
such Offering Period but may participate in any subsequent Offering Period
provided he or she is still an eligible employee as of the Offering Date of
such subsequent Offering Period.

 

9.     Purchase
of Shares. All amounts withheld from the pay of a participant shall
be credited to his or her account under the Plan by the Custodian appointed
under paragraph 10. No interest will be paid on such accounts unless the
Board of Directors determines otherwise. On each Purchase Date of an Offering
Period, the amount of the account of each participant will be applied to the
purchase of whole shares by such participant from the Company at the price
determined under paragraph 7. Any cash balance remaining in a participant’s
account after a Purchase Date because it was less than the amount required to
purchase a full share shall be retained in the participant’s account for the
next Purchase Period.

 

10.   Delivery
and Custody of Shares. Shares purchased by participants pursuant to
the Plan will be delivered to and held in the custody of such investment or
financial firm (the “Custodian”) as shall be appointed by the Board of
Directors. The Custodian may hold in nominee or street name certificates for
shares purchased pursuant to the Plan and may commingle shares in its custody
pursuant to the Plan in a single account without identification as to
individual participants. By appropriate instructions to the Custodian on forms
to be provided for that purpose, a participant may from time to time obtain (a) transfer
into the participant’s own name of some or all of the shares held by the
Custodian for the participant’s account and delivery of such shares to the
participant; (b) transfer of some or all of the shares held for the
participant’s account by the Custodian to a regular individual brokerage
account in the participant’s own name, either with the firm then acting as
Custodian or with another firm, or (c) sale of some or all of the shares
held by the Custodian for the participant’s account at the market price at the
time the order is executed and remittance of the net proceeds of sale to the
participant. Upon termination of participation in the Plan, a participant may
elect to have the shares held by the Custodian for his or her account
transferred and delivered in accordance with (a) above, transferred to a
brokerage account in accordance with (b), or sold in accordance with (c).

 

11.   Records and
Statements. The Custodian will maintain the records of the Plan. As
soon as practicable after each Purchase Date the Custodian will furnish to each
participant a statement showing the activity in the participant’s account for
the period covered by the statement and the cash and share balances in the
account as of the Purchase Date. Participants will be furnished such other
reports and statements, and at such intervals, as the Board of Directors shall
determine from time to time.

 

12.   Expense of
the Plan. The Company will pay all expenses incident to operation of
the Plan, including costs of record keeping, accounting fees, legal fees,
commissions and issue or transfer taxes on purchases pursuant to the Plan and
on delivery of shares to a participant or into his or her brokerage account.
The Company will not pay expenses, commissions or taxes incurred in connection
with sales of shares by the Custodian at the request of a participant. Expenses
to be paid by a participant will be deducted from the proceeds of sale prior to
remittance.

 

13.   Rights Not
Transferable. The right to purchase shares under this Plan is not
transferable by a participant, and such right is exercisable during the
participant’s lifetime only by the participant. Upon the death of a
participant, any cash or shares held for the participant’s account shall be
transferred to the persons entitled thereto under the laws of the state of
domicile of the participant upon a proper showing of authority.

 

14.   Dividends
and Other Distributions. Cash dividends and other cash
distributions, if any, on shares held by the Custodian will be paid currently
to the participants entitled thereto unless the Company subsequently adopts a
dividend reinvestment plan and the participant directs that his or her cash
dividends be invested in accordance with such plan. Stock dividends and other
distributions in shares of the Company on shares held by the Custodian shall be
issued to the Custodian and held by it for the account of the respective
participants entitled thereto.

 

15.   Voting and
Shareholder Communications. In connection with voting on any matter
submitted to the shareholders of the Company, the Custodian will furnish to
each participant a proxy authorizing the participant to vote the shares held by
the custodian for his account. Copies of all general communications to
shareholders of the Company will be sent to participants in the Plan.

 

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16.   Tax
Withholding. Each participant who has purchased shares under
the Plan shall immediately upon notification of the amount due, if any, pay to the
Company in cash amounts necessary to satisfy any applicable federal, state,
local, national or other governmental tax withholding determined by the Company
to be required in any country having taxing jurisdiction. If the Company
determines that additional withholding is required beyond any amount deposited
at the time of purchase, the participant shall pay such amount to the Company
on demand. If the participant fails to pay the amount demanded, the Company may
withhold that amount from other amounts payable by the Company to the
participant, including salary, subject to applicable law.

 

17.   Responsibility
and Indemnity. Neither the Company, its Board of Directors, the
Custodian, any Participating Subsidiary, nor any member, officer, agent, or
employee of any of them, shall be liable to any participant under the Plan for
any mistake of judgment or for any omission or wrongful act unless resulting
from gross negligence, willful misconduct or intentional misfeasance. The
Company will indemnify and save harmless its Board of Directors, the Custodian
and any such member, officer, agent or employee against any claim, loss,
liability or expense arising out of the Plan, except such as may result from
the gross negligence, willful misconduct or intentional misfeasance of such
entity or person.

 

18.   Conditions
and Approvals. The obligations of the Company under the Plan shall
be subject to and conditional upon compliance with all applicable U.S. state,
federal and foreign laws and regulations, compliance with the rules of any
stock exchange or market on which the Company’s securities may be listed, and
approval of such federal, state and foreign authorities or agencies as may have
jurisdiction over the Plan or the Company. The Company will use its best effort
to comply with such laws, regulations and rules and to obtain such
approvals.

 

19.   Amendment
of the Plan. The Board of Directors of the Company may from time to
time amend the Plan in any and all respects, except that without the approval
of the shareholders of the Company, the Board of Directors may not increase the
number of shares reserved for the Plan or decrease the purchase price of shares
offered pursuant to the Plan.

 

20.   Termination
of the Plan. The Plan shall terminate when all of the shares
reserved for purposes of the Plan have been purchased, provided that the Board
of Directors in its sole discretion may at any time terminate the Plan without
any obligation on account of such termination, except as hereinafter in this
paragraph provided. Upon termination of the Plan, the cash and shares, if any,
held in the account of each participant shall forthwith be distributed to the
participant or to the participant’s order, provided that if prior to the
termination of the Plan, the Board of Directors and shareholders of the Company
shall have adopted and approved a substantially similar plan, the Board of
Directors may in its discretion determine that the account of each participant
under this Plan shall be carried forward and continued as the account of such participant
under such other plan, subject to the right of any participant to request
distribution of the cash and shares, if any, held for his account.

 

21.   Effective
Date of the Plan. The Plan shall become effective on March 1,
1998, subject to approval not later than June 30, 1998, by the affirmative
vote, in person or by proxy, of the holders of at least a majority of the
shares of the Company represented and voting on the approval of the Plan at a
validly held meeting of the shareholders.

 

Adopted
October 14, 1997

 

Amendments
approved by Shareholders:

April 23,
1998

May 21,
1998

May 18,
2000

May 20,
2004

May 19,
2005

May 17,
2007

 

4EXHIBIT
10.24

 

FEI

5350
NE Dawson Creek Drive

Hillsboro,
OR 97124

Phone:
503-726-7500, Fax: 503-726-7509

 

Benjamin,

 

This is confirmation of the
offer that we discussed earlier today. The contents of this offer are an
outline of terms and are subject to more complete agreements and documents
described in this letter.

 

The arrangements for your
employment would be:

 

·                  Position: Executive Vice President, reporting
to Don Kania. You would also be designated as an executive officer of FEl,

 

·                  Base pay of $310k annualized rate (paid at
least monthly and consistent with the local payroll schedule). For clarity: you
will paid in Sing Dollars; this does not include a 131h month annual wage
supplement, which is sometimes the case in Singapore.

 

·                  Targeted annual incentive compensation of 60%
of base-pay at 100% of targeted payout (initially $186k)

 

·                  This is paid out under the company’s existing
management incentive compensation plan as established by the compensation
committee. Payments are based upon company and individual performance; I can
provide you with more details on that if you need them. Your participation
would be effective upon date of hire and pro-rated from your start of
employment.

 

·                  Further, to provide you bonus income
protection for the year 2007 until you begin FEI employment: From January 1s1
2007 until your start date of employment, you will be provided an amount of
money equal to a payment of 1x of your targeted annual bonus, applicable for
that period of time (I.e., from 1/1/2007, until
your start date with FEI, later in 2007).

 

·                  However, FEI will not pay for any lost bonus
if bonus is otherwise paid for any period starting from 1/1/2007 until you commence employment.
This means you can’t receive over-lapping bonuses for the same time period from
your current employer and from FEI.

·                  In the event you leave FEI voluntarily prior
to one year of employment, you are obligated to repay this in full.

·                  In the event you are terminated from FEI “without
cause” no repayment would be required.

 

·                  Special Hiring Bonus on $100,000, payable soon
after you commence FEI employment. You agree that you will repay this amount in
the event you leave FEI Voluntarily prior to two years of employment. That
repayment would be 100% if were to leave prior to one full year of employment,
50% if you leave between one year and two years of employment, and no repayment
after two years of employment. However, should you be terminated from FEI “without
cause” no repayment would be required.

 

·                  FEI will provide you a “Living Allowance”
amount in Singapore of $11 Ok USD per year, which is for a combination of
housing, educational assistance, and transport. However, each of these
components will require appropriate documentation about these expenses, with
the total not to exceed the $110k amount, with payments to be made on a monthly
basis. A part of this amount will be a transport allowance of $2,700 per month
for which reimbursement documentation will not be required.

 

·                  Your pay amount is being established and will
be computed on an on-going basis in
USD, but will be converted to Sing Dollars at the rate applicable at the time
of hire, and then again periodically re-computed per the Company’s applicable
accounting policies concerning recalculation of exchange rates, This same
methodology will be used for other areas where USD is quoted in this letter,
although actual payments will be in SGD.

 

·                  RSU’s: 60,000 RSU’s, which vest over four
years in equal annual installments, beginning with start date. Price
established upon start date,

 

·                  Severance: In the event you are terminated
from FEI “without cause” within the first four years of employment, you will
receive a severance amount of one year of base-pay and an additional amount
equivalent to one year of your “Living Allowance” as described above.

 

·                  Change-of-Control: In the event there is a “Change-of-Control”
involving the Company the benefits below will apply.

 

 

The change-of-control benefit
will be subject to a “double trigger”, which means that there must be a change
of control in company ownership, plus your position must be significantly
altered in order for a change-of-control event to have occurred. “Significantly
altered” could mean termination or it could be your being asked to assume a job
of significantly decreased responsibility.

 

The Change-of-Control
Agreement will provide:

 

·                  One year of base-pay,

·                  One year of targeted annual bonus,

·                  One year of continued vesting on any equity
grants.

 

As mentioned earlier, we will
provide:

 

·                  Indemnification of non-compete claims, should
that situation occur, provided that you have not breached your obligations to
FEI not to use proprietary information acquired from a prior employer.

·                  Three weeks (15 days) of vacation time per
year.

 

Additional components of this
offer: Subsequent to your eventual termination from FEl employment, you will be
subject to a one year non-solicitation obligation, plus you will be subject to
a one year non-compete obligation. Also you will be required to enter into our
standard forms of agreement and policies concerning protection of FEl
proprietary information, assignment of inventions and protection of confidential
information.

 

I also must point out that
employment at FEI is mutually “at will” and either you or FEI may terminate
your employment for any reason or no reason at all at any time (however, in
compliance with the terms stated above). We will work together to agree upon a
mutually acceptable date for your employment to commence.

 

FEI is prepared to wait up to
six months, should that be necessary, from the date of your resignation, for
you to begin FEI employment. Of course, this presumes you will be promptly
tendering your resignation from your current employer.

 

Benjamin, as we’ve previously
mentioned, we would very much like to have you be part of the executive team of
FEI. We believe you can have a large impact on our company, and your
opportunity to build a business and realize personal benefit is significant.

 

We look forward to hearing
back from you, confirming your plans to join FEI. If you have any questions,
please let Don Kania or me know.

 

Best Regards,

 

	
  /s/ Jim Higgs

  	
   

  
	
  Jim Higgs

  	
   

  
	
  Sr. Vice President, Human
  Resources

  	
   

  
	
   

  
	
   

  	
  My below signature confirms
  my acceptance of the above offer:

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Benjamin Loh,
  May 6, 2007

  	
   

  
	
   

  	
  Benjamin Loh / date

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