Document:

Exhibit
10.23

CYMER,
INC.

REDUCTION
IN FORCE SEPARATION BENEFITS PLAN

 

REVISION
4, NOVEMBER 14, 2007

 

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 due to a Reduction in Force
other than written employment or separation agreements with the Company that
provide severance benefits are hereby superseded by this Plan, effective as of October         ,
2007.  This plan will remain in effect
until terminated by the Board of Directors of Cymer, Inc. or its designee.

 

SECTION 3.         DEFINITIONS

 

(a)           “BASE SALARY” means
the Eligible Employee’s wages earned on the basis of a 40 hour work week
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; or (vii) a leave of absence exceeding the period allowed
by contract, policy or applicable law. 
Notwithstanding the foregoing, termination of the Eligible Employee’s
employment due to death or disability shall not be considered termination for
Cause.  The determination that a termination is for Cause
shall be by the Committee, as applicable, in its sole and exclusive judgment
and discretion.

 

(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.

 

1

 

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

 

(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 base salary offered for such position is not less than eighty-five
percent (85%) of Eligible Employee’s Base Salary 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
benefits under the Company’s long-term disability plan are not eligible for the
benefits provided herein.

 

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

 

(i)            “GROUP HEALTH PLAN”
means a plan offered by the Company that provides medical, dental and/or vision
coverage to the Company’s employees, but does not include an Internal Revenue
Code Section 125 health care reimbursement plan.

 

(j)            “HEALTH BENEFIT PERIOD”
the first full calendar month that commences following the Participant’s
Termination Date.

 

(k)           “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 (1) the
employee’s death or disability, (2) a force majeure circumstance beyond the Company’s control
including, but not limited to, fire, flood, explosion, bombing, earthquake or
civil unrest, or (3) the employee’s resignation for any reason
(including retirement).

 

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

 

(m)          “PLAN” means this
Cymer, Inc. Reduction in Force Separation Benefits Plan, as set forth in
this instrument and as amended from time to time.

 

(n)           “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, a corporate restructuring, or any business, operational or other
circumstances which necessitate a reduction in the number of U.S. employees on
U.S. payroll as a means of ensuring the financial health, efficiency and
viability of the Company on a short-term or long-term basis.  The determinationas to whether or not a
Reduction in Force has occurred under particular circumstances shall be made by
the Committee in its sole and exclusive discretion.

 

2

 

(o)           “SERVICE DATE”
means the Eligible Employee’s first date of employment with the Company or, if
rehired by the Company, the date of rehire.

 

(p)           “TERMINATION DATE” means
the date of the Eligible Employee’s Involuntary Termination Without Cause.

 

(q)           “YEARS OF SERVICE” means
the number of full years (i.e., a period of twelve complete months) or partial
years of service completed by the Eligible Employee measured from the Service
Date to the Termination Date, rounded up to the next whole year.

 

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 Human Resources Department, or its
designee an effective Release in substantially the form attached hereto as Exhibit A
or Exhibit B, as appropriate (the “Release”),
within the time period set forth therein, but in no event later than forty-five
(45) days following the Termination Date, and such release must become
effective in accordance with its terms. 
The Company, in its discretion, may modify the form of the required
Release at any time to comply with applicable law and shall determine the form
of the required Release.  Additionally, a
condition to receiving the severance benefits described in Section 5, the
Eligible Employee must return all Company property within five (5) days of
the Eligible Employee’s Termination Date.

 

SECTION 5.         PARTICIPATION AND BENEFITS.

 

(a)           SEVERANCE
BENEFITS.  An Eligible Employee who
timely returns a Release as 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.  In the event of the Participant’s death prior
to receipt of the severance payment, such severance payment shall be made to
the Participant’s beneficiary or beneficiaries, as applicable.

 

	
  POSITION LEVEL

  	
   

  	
  SEVERANCE PAYMENTS

  
	
  Senior
  Director/Director 

  	
   

  	
  4 months Base
  Salary plus

  1 week Base Salary

  per Year of Service

  
	
   

  	
   

  	
   

  
	
  Senior Manager/Manager 

  	
   

  	
  2 months Base
  Salary plus

  1 week Base Salary

  per Year of Service

  
	
   

  	
   

  	
   

  
	
  Senior Level Professional,

  	
   

  	
  2 months Base Salary plus

  

 

3

 

	
  Individual
  Contributor (IC 5-6) 

  	
   

  	
  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

  Employee (IC 1-4)

  	
   

  	
  1 month Base Salary plus

  1 week Base Salary

  per Year of Service

  
	
   

  	
   

  	
   

  
	
  Non-Exempt
  Employee 

  	
   

  	
  1 week Base
  Salary

  per Year of Service

  (minimum 3 weeks Base Salary)

  

 

(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

  
	
   

  	
   

  	
   

  
	
  Senior
  Director/Director

  	
   

  	
  3-months

  
	
   

  	
   

  	
   

  
	
  Senior
  Manager/Manager

  	
   

  	
  1-month

  
	
   

  	
   

  	
   

  
	
  Senior
  Level Professional,

  Individual Contributor (IC 5-6)

  	
   

  	
  1-month

  
	
   

  	
   

  	
   

  
	
  Supervisor

  	
   

  	
  2-day workshop

  
	
   

  	
   

  	
   

  
	
  Exempt
  or Technical

  Employee (IC 1-4)

  	
   

  	
  2-day workshop

  
	
   

  	
   

  	
   

  
	
  Non-Exempt
  Employee

  	
   

  	
  2-day workshop

  

 

(iii)         Group Health Plan
Coverage Payments.  Assuming the
Participant timely elects to continue his Group Health Plan coverage under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) during the
Health Benefit Period the Company will pay the applicable portion of the
Company premium for the Participant and any qualified dependents for Group
Health Plan coverage as in effect immediately prior to the Participant’s
Termination Date.  As a condition to
receiving such benefits, during the Health Benefit Period the Participant must
continue to pay the Participant’s applicable portion of the premium for the
Participant and any qualified dependents for Group Health Plan coverage as in
effect immediately prior to the Participant’s Termination Date.  The
Company agrees that, in the event of the death of the Participant prior to the
end of the Benefit Period, the Participant’s surviving 

 

4

 

spouse
and the Participant’s eligible dependent children covered under the Company’s
Group Health Plan at the time of the Participant’s death, shall continue to
receive benefits under this Section for the Heath Benefit Period.  No further provisions in this
agreement are made available to a Participant’s surviving spouse or the
Participant’s dependent children.  Following the Health Benefit Period, the
Participant, Participant’s spouse, and Participant’s eligible dependent
children, may continue to receive coverage under the Company’s Group Health
Plan by paying for the entire applicable COBRA coverage premiums until the
Participant, Participant’s spouse, or Participant’s dependent children, as applicable,
cease to be eligible for COBRA continuation coverage.

 

(iv)          Deferred Compensation.  Benefits payable under the Plan are intended
to be payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of
the Treasury Regulations or otherwise exempt from application of Section 409A
of the Code.

 

(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 benefits hereunder if his or her
termination is for Cause, occurs as a result of his or her death or disability,
a force majeure circumstance beyond the
Company’s control including, but not limited to, fire, flood, explosion,
bombing, earthquake or civil unrest, or 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 to the
extent permitted by applicable laws.

 

(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 other
than individual written employment or separation agreements with the Company
that provide severance benefits or any severance programs that specifically
provide for benefits additional to those provided by this Plan.

 

(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; NON-DUPLICATION 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.

 

5

 

(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, within the
period commencing 90 days prior to the Termination Date and ending on the date
upon 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 base salary
replacement period represented by the severance payment described in
subparagraph 5(a)(i), a Participant is offered and accepts a position (whether
a Comparable Position or not) with the Company, then he or she shall not
receive any further severance benefits under this Plan and must repay the
Company the pro-rata portion of the lump sum severance payment representing the
portion of the base salary replacement period that follows his or her date of
rehire.

 

(iv)          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.

 

(v)            If an Eligible
Employee receives pay and/or other benefits in lieu of notice, or receives pay
and/or other benefits during an applicable notice period, under any applicable
Federal, state or local law including, but not limited to, the Worker
Adjustment Retraining Notification Act, 29 U.S.C. Section 2101 et seq., or
the California “mini-WARN” Act, then the benefits and amounts payable under
subsection 5(a) of this Agreement shall be reduced (but not below 1 week
Base Salary) by an amount equal to the aggregate amount of such pay and/or
other benefits received by Eligible Employee in lieu of such notice or during
such notice period.

 

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 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.

 

6

 

(b)           The members of the
Committee shall be the named 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: Human Resources Department, Cymer, Inc., 17075
Thornmint Court, San Diego, California 92127, which 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.

 

(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.

 

7

 

(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.  An Eligible Employee’s right to receive
payments under the Plan is no greater than that of the Company’s unsecured
general creditors.  Therefore, if the
Company were to become insolvent, the Eligible Employee might not receive
benefits under the Plan.

 

8

 

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 amendment
or other modification of the Plan shall be only in writing and signed by an
authorized officer of the Company.

 

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

 

Type of Plan: 
Welfare benefit plan

 

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:  Vice President or acting Vice
President, Human Resources, Cymer, Inc., 17075 Thornmint 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.

 

9

 

(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 the Plan, the employee should contact the Plan
Administrator.  If an employee any
questions about this statement or about the employee’s rights under ERISA, or
if the employee needs assistance in obtaining documents from the Plan
Administrator, the employee should contact the nearest office of the Employee
Benefits Security Administration, U.S. Department of Labor, listed in the
telephone directory or the Division of Technical Assistance and Inquiries,
Employee Benefits Security Administration, U.S. Department of Labor, 200
Constitution Avenue N.W., Washington, D.C. 20210.  The employee may also obtain certain
publications about the employee’s rights and responsibilities under ERISA by calling
the publications hotline of the Employee Benefits Security Administration or
accessing its website at http://www.dol.gov/ebsa/.

 

10

 

For
Employees Under Age 40

 

EXHIBIT A

 

RELEASE
AND WAIVER OF CLAIMS

 

In consideration of the payments and other benefits set forth in Section 4
of the Reduction In Force Separation Benefits Plan dated October         ,
2007, 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 that I have seven (7) days
to consider this Release and Waiver (although I may choose voluntarily to
execute this Release and Waiver earlier).

 

	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  [EMPLOYEE]

  

 

1

 

For
Employees Over Age 40

 

EXHIBIT B

 

RELEASE
AND WAIVER OF CLAIMS

 

In consideration of the payments and other benefits set forth in Section 4
of the Reduction In Force Separation Benefits Plan dated October         ,
2007, 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 should consult with an attorney
prior to executing this Release and Waiver; (c) I have forty-five (45)
days 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 unexercised.

 

	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  [EMPLOYEE]

  

 

1Exhibit
10.24

 

CYMER, INC.

 

EXECUTIVE
OPTION, BONUS AND

GROUP
HEALTH COVERAGE EXTENSION PROGRAM

 

SECTION 1.         PURPOSE

 

This Executive Option,
Bonus and Group Health Coverage Extension Program (the “Program”) is designed
to provide Eligible Executives (as defined herein) with certain benefits (as
described herein) as of the time at which such Eligible Executive retires and
ceases to serve the Company (as defined herein) on a Full-Time (as defined
herein) basis on the terms and conditions set forth herein.

 

SECTION 2.         EFFECTIVE DATE

 

This Program was adopted by the Board of Directors of the Company on August 22,
2001 originally effective as of December 1, 2001, and most recently
amended and restated as of November 14, 2007.

 

SECTION 3.         DEFINITIONS

 

(a)           “CAUSE” means,
with respect to a particular Eligible Executive, the occurrence of any of the following: (i) such Eligible Executive’s
conviction of any felony or any crime involving fraud or dishonesty which has a
material adverse effect on the Company and/or its affiliates; (ii) such
Eligible Executive’s participation (whether by affirmative act or omission) in
a fraud, act of dishonesty or other act of misconduct against the Company
and/or its affiliates; (iii) conduct by such Eligible Executive which,
based upon a good faith and reasonable factual investigation, demonstrates such
Eligible Executive’s gross unfitness to serve; (iv) such Eligible
Executive’s violation of any fiduciary duty or duty of loyalty owed to the
Company and/or its affiliates; (v) such Eligible Executive’s breach of any
material term of any material contract between such Eligible Executive and the
Company and/or its affiliates which has a material adverse effect on the
Company and/or its affiliates; (vi) such Eligible Executive’s repeated
violation of any material Company policy which has a material adverse effect on
the Company and/or its affiliates; (vii) the Eligible Executive’s
violation of state or federal law in connection with the performance of the
Eligible Executive’s job which has a material adverse effect on the Company
and/or its affiliates; (viii) such Eligible Executive’s death or
Disability; or (ix) such Eligible Executive’s repeated neglect of
duties or substandard performance that is not cured within fifteen (15) days
following notice of such neglect or deficient performance.  The
determination that a termination is for Cause shall be by the Committee, as
applicable, in its sole and exclusive judgment and discretion.

 

(b)           “COMMITTEE” means the Committee established by the
Company’s Board of Directors (and any delegatee(s) of such Committee) to
administer this Program in accordance with its terms.

 

1

 

(c)           “COMPANY” means Cymer, Inc., and any
successor entity following a merger, reverse merger, the sale of all or
substantially all of the assets, or similar transaction with respect to Cymer, Inc.

 

(d)           “DISABILITY” means the Executive is prevented from
performing his duties to the Company by reason of any physical or mental
incapacity that results in Executive’s satisfaction of all requirements
necessary to receive benefits under the Company’s long-term disability plan due
to a total disability.

 

(e)           “ELIGIBLE EXECUTIVE” means any Executive or former Executive
who the Committee determines, in its sole and exclusive discretion, satisfies
each of the following conditions as of the Separation Date:

 

(i)            is in good standing with the Company,

 

(ii)           the Company does not have grounds to terminate the
Executive for Cause,

 

(iii)         voluntarily retires from employment with the Company,

 

(iv)          either (A) voluntarily relinquishes all options
that are unvested and unexercised as of the Separation Date and any other
unvested equity awards for which the shares subject to such awards have not yet
been issued as of the Separation Date which were granted to such Executive
within the one-year period prior to such voluntary retirement, or B) has an
individual employment agreement with the Company that otherwise provides for
full acceleration of vesting of Executive’s unvested equity awards as of the
Separation Date.

 

(v)            satisfies either of the following service conditions:

 

(A)          Ten (10) consecutive Years of
Service on a Full-Time basis (at least five (5) of which were as an
Executive) and the attainment of age fifty-five (55); or

 

(B)           Fifteen (15) consecutive Years of Service
on a Full-Time basis (at least five (5) of which were as an Executive) and
the attainment of age fifty (50).

 

(f)            “EXECUTIVE” means an Officer, the Chief Technical
Officer, the Chief Technical Advisor or the Chief Intellectual Property Counsel
of the Company.

 

(g)           “FULL-TIME” means, with respect to a particular
Eligible Executive, he or she is scheduled to work forty (40) or more hours per
week, or such hours as required by a Committee-approved succession plan as
described in subsection 4(a) herein.

 

(h)           “GROUP HEALTH PLAN” means a plan offered by the Company that
provides medical, dental and/or vision coverage to the Company’s employees, but
does not include an Internal Revenue Code Section 125 health care
reimbursement plan.

 

(i)            “HEALTH BENEFIT PERIOD”
means the twelve (12) month period following the Eligible Executive’s
Separation Date.

 

2

 

(j)            “OFFICER” means, with respect to the Company, a
person who is an officer within the meaning of Section 16 of the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

 

(k)           “PARTICIPANT” means an Eligible Executive who has
fulfilled the requirements of Section 4 herein.

 

(l)            “SEPARATION
DATE” means the effective date of the Eligible Executive’s retirement from
Full-Time status with the Company; provided that such retirement also qualifies
as a “separation from service” for purposes of Section 409A(a)(2)(A)(i) of
the Internal Revenue Code and the regulations and other guidance thereunder.

 

(m)          “SERVICE DATE” means the Eligible Executive’s first date of employment with the
Company.

 

(n)           “YEAR OF SERVICE” means a full year (i.e., a period of
twelve complete months) of service completed by an Eligible Executive, and “Years
of Service” means, with respect to such Eligible Executive, the number of Years
of Service measured from such Eligible Executive’s Service Date to such
Eligible Executive’s Separation Date, but excluding any monthly period during
which Executive is not employed by the Company.

 

SECTION 4.         DEPARTURE AND ENTITLEMENT REQUIREMENTS.

 

As a
condition to becoming a Participant and receiving any of the benefits pursuant
to this Program, the Eligible Executive must satisfy each of the following:

 

(a)           Successfully complete an approved succession planning
process (the exact length and satisfaction of which shall be determined by the
Committee in its sole and exclusive discretion) prior to such Eligible
Executive’s Separation Date to ensure a smooth transition following such
Eligible Executive’s retirement from the Company;

 

(b)           Within the time period set forth therein, but in no
event later than forty-five (45) days following termination of employment, the
Eligible Executive must provide the Company with a Release and Waiver of Claims
(in the form attached hereto as Exhibit A (the “Release and Waiver”) or
such other form of Release and Waiver as may be required by the Company), and
such Release and Waiver must become effective in accordance with its terms; and

 

(c)           On or before such Eligible Executive’s Separation
Date, enter into a Consulting Agreement with the Company (in the form attached
hereto as Exhibit B, as amended by the Company from time to time), a copy
of which shall be provided to Eligible Executives upon the distribution of this
Program.

 

SECTION 5.         PARTICIPATION AND BENEFITS.

 

An Eligible Executive who timely signs and returns an executed
Consulting Agreement and an effective Release and Waiver as described in Section 4
shall become a Participant as of the later of the effective date of the
Consulting Agreement and the Release and Waiver, and, subject to the terms and
conditions of the Consulting Agreement, shall be entitled to the following:

 

3

 

(a)           Service as a consultant to the Company for a term of
four (4) years from the Separation Date;

 

(b)           Remuneration in the amount of one thousand dollars
($1,000.00) per month during the term of the Consulting Agreement, which
amounts shall accrue and be paid on a monthly basis within thirty (30) days of
the Company’s receipt of the monthly invoice for such consulting services;
provided, however, that no payments of such remuneration shall be made any
earlier than six (6) months after the Separation Date to the extent
necessary to satisfy the distribution requirements of Internal Revenue Code Section 409A(a)(2)(B);

 

(c)           Continued vesting of stock options and other equity
awards during the term of the Consulting Agreement pursuant to the terms and
conditions of the applicable Company stock option plan and stock option
agreement (not including the stock options and other equity awards voluntarily
relinquished as a condition to receiving benefits under this Program, if applicable);

 

(d)           An extension of the period in which such Participant
or, in the event of such Participant’s death, such Participant’s beneficiary or
beneficiaries may exercise such Participant’s options following such
Participant’s termination of service with the Company to a date that is the
earlier of: (i) ninety (90) days from end of the term of the Consulting
Agreement, or (ii) the expiration of the maximum term of the option;

 

(e)           Continued availability of the AYCO Company for
financial services at Consultant’s own expense; and

 

(f)            Continue vesting during the term of the
Consulting Agreement of eligible bonus under the Executive 3-Year Cash Bonus
Program, Long-Term Incentive Bonus Plan and any successor plan to such plans;
and

 

(g)           The Company will pay the premiums for coverage
under the Company’s Group Health Plan(s) for the Participant, Participant’s
spouse, and Participant’s eligible dependent children during the Health Benefit
Period.  As a condition to the benefits
provided herein, the Participant must waive (and not revoke such waiver) any
and all rights under Title X of the Consolidated Omnibus Budget Reconciliation
Act (COBRA) of 1985 and Section 4980B of the Internal Revenue Code of
1986.  The Participant, Participant’s
spouse, and Participant’s dependent children, acknowledge and agree that by
accepting the Group Health Plan premium payments provided by the Company during
the Health Benefit Period they are waiving such COBRA rights.  Following the Health Benefit Period, the
Participant, Participant’s spouse, and Participant’s eligible dependent
children, may participate in the Company’s Group Health Plan by paying for such
coverage at the Company’s Group Health Plan retirement group rate in effect at
the time such payment is due, until the earlier of: (1) the date the
Participant or the Participant’s spouse reaches age sixty-five (65) or becomes
entitled to Medicare coverage (Part A or Part B), (2) the
Participant, Participant’s spouse, or Participant’s dependent children cease to
pay their applicable premiums for coverage under the applicable Group Health
Plan, or (3) the Participant, Participant’s spouse, or Participant’s
dependent children, as applicable, otherwise cease to satisfy the eligibility
requirements of the applicable Group Health Plan.

 

4

 

Notwithstanding the foregoing, following the Health Benefit Period the
Company shall have no obligation to permit the Participant, the Participant’s
spouse, or the Participant’s eligible dependent children, to participate in the
Company’s Group Health Plan at the Company’s retirement group rate, if such
Participant,  Participant’s spouse, or
Participant’s eligible dependent children, otherwise become eligible for
coverage under another health plan. The Company shall have no obligation to
continue the Participant’s, the Participant’s spouse, or the Participant’s
eligible dependent children coverage if the Company ceases to sponsor a Group
Health Plan.

 

The Company agrees that, in the event of the death of the Participant
during the term of the agreement, the Participant’s surviving spouse and the
Participant’s eligible dependent children covered under the Company’s Plan at
the time of the Participant’s death, shall be eligible to participate in the
Company’s Group Health Plan until they cease to be eligible to participate in
the Company’s Group Health Plan as described in this Section.  No further provisions in this agreement are made
available to a Participant’s surviving spouse or the Participant’s dependent
children.

 

(h)           Notwithstanding the foregoing,
to the extent that there is any conflict between the terms set forth in this Program and the terms
of the Consulting Agreement attached hereto (or as amended by the Company from
time to time), the terms of the Consulting Agreement shall control.

 

(i)            Notwithstanding anything to the contrary set forth
herein, if the Eligible Executive is entitled to a greater benefit under any
individual employment agreement than a benefit provided under this Program, the
Eligible Executive will receive the greater benefit provided under such
individual employment agreement in lieu of the lesser benefit provided under
this Program, as well as any additional benefits provided under this Program
not included in such individual employment agreement.

 

SECTION 6.         COMMITTEE

 

The Committee is
empowered to construe and interpret the provisions of the Program and to decide
all questions of eligibility for benefits under this Program and shall make all
determinations, interpretations and decisions with respect to this Program and
the benefits provided hereunder 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 responsibilities or administrative
duties with respect to this Program.

 

SECTION 7.         AMENDMENT

 

Except as otherwise
provided in this Section 7, the Company reserves the right to amend this
Program at any time and from time to time. 
Any modification or other amendment of this Program shall be only in
writing and signed by the Chief Executive Officer of the Company.  No such amendment of the Plan shall impair
the rights of an Executive or former Executive who has fulfilled the age and
service requirements of either subsection 3(e)(i) or 3(e)(ii) herein
unless (i) the Company requests the consent of such person and (ii) such
person consents in writing.

 

5

 

EXHIBIT A

 

RELEASE
AND WAIVER OF CLAIMS

 

In consideration of the payments and other benefits set forth in the
Executive Option, Bonus and Group Health Coverage Extension Program, to which
this Release and Waiver is attached, I, [EXECUTIVE], hereby furnish CYMER, INC. (the “Company”), with the following release and
waiver (“Release and Waiver”).

 

In consideration for the benefits and other consideration provided
under the Executive Option, Bonus and Group Health Coverage Extension Program,
I hereby release the Company and its directors, officers, employees,
shareholders, agents, attorneys, predecessors, successors, affiliates, and
assigns from any and all claims, liabilities, or obligations, whether they are
known or unknown to me, arising out of, or in any way related to, events, acts,
conduct, or omissions that occurred prior to or on the date I sign this Release
and Waiver.  This general release
includes, but is not limited to: (1) all claims directly or indirectly
arising out of or in any way connected with my employment with the Company or
the termination of that employment; (2) all claims related to my
compensation or benefits from the Company including salary, bonuses,
commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, stock, stock options or any other ownership interests in the Company;
(3) all contractual claims, including claims for breach of contract,
wrongful termination, or breach of the covenant of good faith and fair dealing;
(4) all tort claims, including claims for fraud, defamation, and emotional
distress; and (5) all federal, state, and local statutory claims including
claims for discrimination, harassment, or other claims arising under the
federal Civil Rights Act of 1964, as amended, the federal Americans with
Disabilities Act of 1990, the federal Age Discrimination in Employment Act of
1967, as amended (“ADEA”), the California Fair Employment and Housing Act, and
the California Labor Code.

 

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 Company.

 

I acknowledge that, among other rights, I am waiving and releasing any
rights I may have under ADA and Title X of
the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 and Section 4980B
of the Internal Revenue Code of 1986 relating to continuation coverage and
conversion rights, 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 under the ADEA which may arise after this Release and Waiver is
executed; (b) I should consult with an attorney prior to executing this
Release and Waiver; (c) I have twenty-one (21) days 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 unexercised.

 

	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  [EXECUTIVE]

  

 

 

EXHIBIT B

 

CONSULTING
AGREEMENT

 

This Consulting
Agreement is entered into between
                      (the
“Consultant” and CYMER, INC. (the “Company”)
effective                          .

 

WITNESSETH

 

WHEREAS, Consultant retired from his position of
                                        
with the Company effective                     
and Consultant’s last day of employment with the Company will be
                                
(the “Separation Date”);

 

WHEREAS, the Company believes Consultant
possesses significant skills and knowledge in Consultant’s area of expertise of
[                            ]
and can provide valuable consulting services to the Company and Consultant
wishes to provide such services to the Company;

 

WHEREAS, the Company and Consultant have agreed
that Consultant will provide consulting services as provided herein, pursuant
to the terms and conditions herein;

 

NOW,
THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, the
parties agree as follows:

 

1.             CONSULTING ENGAGEMENT.

 

1.1          Engagement of Services.  Consultant is
hereby engaged by the Company in the capacity of Consultant to the President of
the Company for a period of four years from the Separation Date or until such
earlier date as this Agreement is terminated pursuant to Section 4 below.
(“Consulting Engagement”).  During the
Consulting Engagement, Consultant shall render such services in connection with
the business of the Company as may reasonably be requested from time to time by
the President of the Company or his designee, and Consultant shall utilize his
best efforts, skills and talents in the performance of those services.  Consultant shall be available to perform such
services, at such times and locations as shall be mutually convenient to Consultant and the Company.

 

1.2          Prohibition Against Use Or Disclosure Of Proprietary And Confidential
Information.
Consultant acknowledges and agrees to abide by his continuing obligations under
the Proprietary Agreement he signed with the Company on
                    
(“Proprietary Agreement”), a copy of which is attached hereto as Exhibit A.  In addition,  Consultant
agrees as a condition of this Agreement to execute and comply with the
Consultant Non-Disclosure Agreement (“Consultant Non-disclosure Agreement”), a
copy of which is attached hereto as Exhibit B.

 

1.3          Limitations On Other Activities.     During the Consulting Engagement, Consultant will not
directly or indirectly (whether for compensation or without compensation), as
an individual proprietor, partner, stockholder, officer, Consultant,
consultant, director, joint 

 

1

 

venturer, investor,
lender, or in any other capacity whatsoever (other than as the holder of not
more than one percent (1%) of the total outstanding stock of a publicly held
company), engage in any business activity that is competitive with the business
of the Company, (“Competitive Activity”). For purposes of the Agreement, “Competitive
Activity” shall be defined as obtaining employment, performing work or
providing services to Komatsu, Lambda Physik, Ushio, SVGL, GigaPhoton, Applied
Materials, Nikon, Canon, or ASML (or any related corporation, partnership, or
other related entity).  These Competitive
Activities are in addition to the limitations on Consultant’s activities set
forth in his Consultant Non-Disclosure Agreement and they are considered by the
parties to constitute a reasonable restriction for the purpose of protecting
the business of the Company.  However, if
any such limitation is found by a court of competent jurisdiction to be
unenforceable because it extends for too long a period of time or over too
great a range of activities or in too broad a geographic area, it shall be
interpreted to extend only over the maximum period of time, range of activities
or geographic area as to which it may be enforceable.

 

2.             COMPENSATION.

 

2.1          As compensation for Consultant’s services as a
consultant hereunder for services rendered during the Consulting Engagement,
the Company shall pay Consultant a fee of one thousand dollars ($1,000.00) per
month, which amounts shall accrue and be paid on a monthly basis within thirty
(30) days of the Company’s receipt of the monthly invoice for such consulting
services.  To be entitled to the
consulting fee, the Consultant must provide such monthly invoice within thirty
(30) days following the close of the month for which such consulting services
were rendered.  Notwithstanding the
foregoing, no consulting services payments shall be made any earlier than six (6) months
after the Separation Date to the extent necessary to satisfy the distribution
requirements of Internal Revenue Code Section 409A(a)(2)(B).

 

2.2          In addition to such compensation, the Company will
reimburse Consultant for travel and other out-of-pocket costs reasonably
incurred by him in the course of performing services under this Agreement; provided, however, that the Company shall not be obligated
hereunder unless (i) the Company has agreed in advance to reimburse such
costs, and (ii) Consultant provides the Company with appropriate receipts
or other relevant documentation for all such costs as part of any submission by
him for reimbursement.

 

2.3          Consultant acknowledges and agrees that he is not
entitled to and will not receive any fees or other items of value in connection
with either his Consulting Engagement or any of his other obligations under Section 1
of this Agreement, except as expressly set forth above.

 

3.             BENEFITS.

 

3.1          Provided Consultant satisfies the eligibility criteria
stated in Section 4 of the Executive Option, Bonus and Group Health Coverage
Extension Program (the “Program”), Consultant will be entitled to the benefits
stated in Section 5 of the Program.

 

4.             RIGHT TO TERMINATE. 
The Company has the right to terminate this Agreement only upon written
notice to Consultant in the event that (a) Consultant breaches any of his
continuing obligations under the Proprietary Agreement he signed
on                      ;
(b) Consultant 

 

2

 

commences a Competitive
Activity in violation of Section 1.3 of this Agreement, (c) Consultant’s
death, or (d) Consultant becomes disabled during the Consulting Engagement
with a disability that prevents Consultant from performing his obligations
hereunder for a period of greater than twelve (12) months. Consultant may
terminate this Agreement upon thirty (30) days written notice to Company.

 

5.             INDEPENDENT CONTRACTOR STATUS.

 

5.1          Independent Contractor Status.  It is
understood and agreed that Consultant is an independent contractor and not an
Consultant, agent, joint venturer or partner of the Company, and Consultant
agrees not to hold himself out as, or give any person reason to believe that he
is, a Consultant, agent, joint venturer or partner of the Company.

 

5.2          Consultant’s Responsibility for Tax Payments. 
As an independent contractor, Consultant is responsible for paying all
required state and federal taxes and insurance. 
In particular, the Company will not withhold FICA (Medicare and Social
Security) from Consultant’s payments, make state or federal unemployment
insurance contributions on behalf of Consultant, withhold state and federal
income tax from Consultant’s payments, make disability insurance contributions
on behalf of Consultant, or obtain workers’ compensation insurance on behalf of
Consultant.  Consultant will indemnify
the Company against any liability for any of the payments or withholdings
described in this Section 5.2.

 

5.3          Office Space; Support Services.  The Company
shall provide Consultant with office space and secretarial support if and when
Consultant is performing services under this Agreement on the Company’s
premises, should he desire to utilize them.

 

6.             MISCELLANEOUS.

 

6.1          Confidentiality.  Consultant shall hold the
provisions of this Agreement in strictest confidence and not publicize or
disclose them in any manner whatsoever; provided, however,
that Consultant may disclose this Agreement to his immediate family, attorneys,
accountants, tax preparers and financial advisers, provided the person to whom
he intends to make such disclosure first agrees to be bound by this provision,
and he may also disclose this Agreement insofar as such disclosure is required
by law.

 

6.2          Binding Effect; Non-Assignability.  The rights and
obligations of the parties hereto shall bind and inure to the benefit of their
respective successors, assigns, heirs, executors and administrators, as the
case may be; provided that, as the Company has
specifically contracted for Consultant’s services, Consultant may not assign or
delegate his consulting obligations under this Agreement either in whole or in
part without the prior express written consent of an authorized officer of the
Company.

 

6.3          Complete Understanding; Modification.  Effective the
date first stated above, Consultant’s Employment Agreement with the Company is
no longer of any force or effect.  This
Agreement, including Exhibits A and B, constitutes the complete, final and
exclusive embodiment of the entire agreement between the parties hereto with
respect to the subject matter hereof. 
This Agreement is entered into without reliance on any promise or
representation, written or oral, other than those expressly contained herein,
and it supersedes any other such promises and representations.  Any modification or amendment of this
Agreement shall be effective only if in writing and signed by Consultant and an
authorized officer of the Company.

 

3

 

IN WITNESS WHEREOF, the parties have
executed this Agreement as of the date first written above.

 

 

	
  [CONSULTANT NAME]

  	
   

  	
  CYMER, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date Signed:

  	
   

  	
   

  	
   

  	
  Dated Signed:

  	
   

  	
   

  
							

 

4

 

EXHIBIT A

 

PROPRIETARY AGREEMENT

 

 

EXHIBIT B

 

CONSULTANT NON-DISCLOSURE
AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]