Document:

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                                                                   EXHIBIT 10.07

                                FORMFACTOR, INC.

                        2002 EMPLOYEE STOCK PURCHASE PLAN

                         As adopted April 18, 2002 and
                            as amended May 23, 2003

        1. ESTABLISHMENT OF PLAN. FormFactor, Inc. (the "COMPANY") proposes to
grant options for purchase of the Company's Common Stock to eligible employees
of the Company and its Participating Subsidiaries (as hereinafter defined)
pursuant to this Employee Stock Purchase Plan (this "PLAN"). For purposes of
this Plan, "PARENT CORPORATION" and "SUBSIDIARY" shall have the same meanings as
"parent corporation" and "subsidiary corporation" in Sections 424(e) and 424(f),
respectively, of the Internal Revenue Code of 1986, as amended (the "CODE").
"PARTICIPATING SUBSIDIARIES" are Parent Corporations or Subsidiaries that the
Board of Directors of the Company (the "BOARD") designates from time to time as
corporations that shall participate in this Plan. The Company intends this Plan
to qualify as an "employee stock purchase plan" under Section 423 of the Code
(including any amendments to or replacements of such Section), and this Plan
shall be so construed. Any term not expressly defined in this Plan but defined
for purposes of Section 423 of the Code shall have the same definition herein. A
total of 1,500,000 shares of the Company's Common Stock is reserved for issuance
under this Plan. In addition, on each January 1, the aggregate number of shares
of the Company's Common Stock reserved for issuance under the Plan shall be
increased automatically by a number of shares equal to 1% of the total number of
outstanding shares of the Company Common Stock on the immediately preceding
December 31; provided, that the Board or the Committee may in its sole
discretion reduce the amount of the increase in any particular year; and,
provided further, that the aggregate number of shares issued over the term of
this Plan shall not exceed 20,000,000 shares. Such number shall be subject to
adjustments effected in accordance with Section 14 of this Plan.

        2. PURPOSE. The purpose of this Plan is to provide eligible employees of
the Company and Participating Subsidiaries with a convenient means of acquiring
an equity interest in the Company through payroll deductions, to enhance such
employees' sense of participation in the affairs of the Company and
Participating Subsidiaries, and to provide an incentive for continued
employment.

        3. ADMINISTRATION. This Plan shall be administered by the Compensation
Committee of the Board (the "COMMITTEE"). Subject to the provisions of this Plan
and the limitations of Section 423 of the Code or any successor provision in the
Code, all questions of interpretation or application of this Plan shall be
determined by the Committee and its decisions shall be final and binding upon
all participants. Members of the Committee shall receive no compensation for
their services in connection with the administration of this Plan, other than
standard fees as established from time to time by the Board for services
rendered by Board members serving on Board committees. All expenses incurred in
connection with the administration of this Plan shall be paid by the Company.

        4. ELIGIBILITY. Any employee of the Company or the Participating
Subsidiaries is eligible to participate in an Offering Period (as hereinafter
defined) under this Plan except the following:

               (a) employees who are not employed by the Company or a
Participating Subsidiary prior to the beginning of such Offering Period or prior
to such other time period as specified by the Committee, except that employees
who are employed on the Effective Date of the Registration Statement filed by
the Company with the Securities and Exchange Commission ("SEC") under the
Securities Act of 1933, as amended (the "SECURITIES ACT") registering the
initial public offering of the Company's Common Stock shall be eligible to
participate in the first Offering Period under the Plan;

               (b) employees who are customarily employed for twenty (20) hours
or less per week;

               (c) employees who are customarily employed for five (5) months or
less in a calendar year;

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               (d) employees who, together with any other person whose stock
would be attributed to such employee pursuant to Section 424(d) of the Code, own
stock or hold options to purchase stock possessing five percent (5%) or more of
the total combined voting power or value of all classes of stock of the Company
or any of its Participating Subsidiaries or who, as a result of being granted an
option under this Plan with respect to such Offering Period, would own stock or
hold options to purchase stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of stock of the Company or any of
its Participating Subsidiaries; and

               (e) individuals who provide services to the Company or any of its
Participating Subsidiaries as independent contractors who are reclassified as
common law employees for any reason except for federal income and employment tax
purposes.

        5. OFFERING DATES. The offering periods of this Plan (each, an "OFFERING
PERIOD") shall be of twenty-four (24) months duration commencing on February 1
and August 1 of each year and ending on January 31 and July 31 of each year;
provided, however, that the first such Offering Period shall commence on the
date on which the registration statement filed by the Company with the SEC under
the Securities Act registering the initial public offering of the Company's
Common Stock is declared effective by the SEC (the "FIRST OFFERING DATE") and
shall end on July 31, 2005 (the "FIRST OFFERING PERIOD"). Each Offering Period
shall consist of four (4) six month purchase periods (individually, a "PURCHASE
PERIOD") during which payroll deductions of the participants are accumulated
under this Plan. The First Offering Period shall consist of no more than five
and no fewer than three Purchase Periods, any of which may be greater or less
than six months as determined by the Committee. The first business day of each
Offering Period is referred to as the "OFFERING DATE". The last business day of
each Purchase Period is referred to as the "PURCHASE DATE". The Committee shall
have the power to change the Offering Dates, the Purchase Dates and the duration
of Offering Periods or Purchase Periods without stockholder approval if such
change is announced prior to the relevant Offering Period or prior to such other
time period as specified by the Committee.

        6. PARTICIPATION IN THIS PLAN. Eligible employees may become
participants in an Offering Period under this Plan on the Offering Date after
satisfying the eligibility requirements by delivering a subscription agreement
to the Company prior to such Offering Date, or such other time period as
specified by the Committee; provided, however, that all eligible employees
employed on or before the First Offering Date will be automatically enrolled in
the First Offering Period. Notwithstanding the foregoing, (i) an eligible
employee may elect to decrease the number of shares of Common Stock that such
employee would otherwise be permitted to purchase pursuant to Section 7 below
for the First Offering Period and/or purchase shares of Common Stock for the
First Offering Period through payroll deductions by delivering a subscription
agreement to the Company within thirty (30) days following the First Offering
Date after the filing of an effective registration statement pursuant to Form
S-8 and (ii) the Committee may set a later time for filing the subscription
agreement authorizing payroll deductions for all eligible employees with respect
to a given Offering Period. Except as provided above with respect to the First
Offering Period, an eligible employee who does not deliver a subscription
agreement to the Company after becoming eligible to participate in an Offering
Period shall not participate in that Offering Period or any subsequent Offering
Period unless such employee enrolls in this Plan by filing a subscription
agreement with the Company prior to such Offering Period, or such other time
period as specified by the Committee. Once an employee becomes a participant in
an Offering Period by filing a subscription agreement, such employee will
automatically participate in the Offering Period commencing immediately
following the last day of the prior Offering Period unless the employee
withdraws or is deemed to withdraw from this Plan or terminates further
participation in the Offering Period as set forth in Section 11 below. Such
participant is not required to file any additional subscription agreement in
order to continue participation in this Plan.

        7. GRANT OF OPTION ON ENROLLMENT. Enrollment by an eligible employee in
this Plan with respect to an Offering Period will constitute the grant (as of
the Offering Date) by the Company to such employee of an option to purchase on
the Purchase Date up to that number of shares of Common Stock of the Company
determined by a fraction, the numerator of which is the amount accumulated in
such employee's payroll deduction account during such Purchase Period and the
denominator of which is the lower of (i) eighty-five percent (85%) of the fair
market value of a share of the Company's Common Stock on the Offering Date (but
in no event less than the par value of a

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share of the Company's Common Stock), or (ii) eighty-five percent (85%) of the
fair market value of a share of the Company's Common Stock on the Purchase Date
(but in no event less than the par value of a share of the Company's Common
Stock), provided, however, that for each Purchase Period within the First
Offering Period the numerator shall be fifteen percent (15%) of the eligible
employee's compensation for such Purchase Period and PROVIDED, FURTHER, that the
number of shares of the Company's Common Stock subject to any option granted
pursuant to this Plan shall not exceed the lesser of (x) the maximum number of
shares set by the Committee pursuant to Section 10(c) below with respect to the
applicable Purchase Date, or (y) the maximum number of shares which may be
purchased pursuant to Section 10(b) below with respect to the applicable
Purchase Date. The fair market value of a share of the Company's Common Stock
shall be determined as provided in Section 8 below.

        8. PURCHASE PRICE. The purchase price per share at which a share of
Common Stock will be sold in any Offering Period shall be eighty-five percent
(85%) of the lesser of:

               (a) The fair market value on the Offering Date; or

               (b) The fair market value on the Purchase Date.

        The term "FAIR MARKET VALUE" means, as of any date, the value of a share
of the Company's Common Stock determined as follows:

               (a) if such Common Stock is then quoted on the Nasdaq National
Market, its closing price on the Nasdaq National Market on the date of
determination as reported in The Wall Street Journal;

               (b) if such Common Stock is publicly traded and is then listed on
a national securities exchange, its closing price on the date of determination
on the principal national securities exchange on which the Common Stock is
listed or admitted to trading as reported in The Wall Street Journal; or

               (c) if such Common Stock is publicly traded but is not quoted on
the Nasdaq National Market nor listed or admitted to trading on a national
securities exchange, the average of the closing bid and asked prices on the date
of determination as reported in The Wall Street Journal.

Notwithstanding the foregoing, for purposes of the First Offering Date, fair
market value shall be the price per share at which shares of the Company's
Common Stock are initially offered for sale to the public by the Company's
underwriters in the initial public offering of the Company's Common Stock
pursuant to a registration statement filed with the SEC under the Securities
Act.

        9. PAYMENT OF PURCHASE PRICE; CHANGES IN PAYROLL DEDUCTIONS; ISSUANCE OF
SHARES.

               (a) The purchase price of the shares is accumulated by regular
payroll deductions made during each Offering Period, PROVIDED, HOWEVER, that for
the First Offering Period the purchase price of the shares shall be paid by the
eligible employee in cash on each Purchase Date within the First Offering Period
unless the eligible employee elects to purchase such shares through payroll
deductions after the filing of an effective Form S-8 registration statement
pursuant to the second sentence of Section 6 above within thirty (30) days
following the First Offering Period. The deductions are made as a percentage of
the participant's compensation in one percent (1%) increments not less than one
percent (1%), nor greater than fifteen percent (15%) or such lower limit set by
the Committee. Compensation shall mean all W-2 cash compensation, including, but
not limited to, base salary, wages, commissions, overtime, shift premiums, plus
draws against commissions, provided, however, that for purposes of determining a
participant's compensation, any election by such participant to reduce his or
her regular cash remuneration under Sections 125 or 401(k) of the Code shall be
treated as if the participant did not make such election. Payroll deductions
shall commence on the first payday of the Offering Period and shall continue to
the end of the Offering Period unless sooner altered or terminated as provided
in this Plan.

               (b) A participant may increase or decrease the rate of payroll
deductions during an Offering Period by filing with the Company a new
authorization for payroll deductions, in which case the new rate shall

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become effective for the next payroll period commencing after the Company's
receipt of the authorization and shall continue for the remainder of the
Offering Period unless changed as described below. Such change in the rate of
payroll deductions may be made at any time during an Offering Period, but not
more than one (1) change may be made effective during any Purchase Period. A
participant may increase or decrease the rate of payroll deductions for any
subsequent Offering Period by filing with the Company a new authorization for
payroll deductions prior to the beginning of such Offering Period, or such other
time period as specified by the Committee.

               (c) A participant may reduce his or her payroll deduction
percentage to zero during an Offering Period by filing with the Company a
request for cessation of payroll deductions. Such reduction shall be effective
beginning with the next payroll period after the Company's receipt of the
request and no further payroll deductions will be made for the duration of the
Offering Period. Payroll deductions credited to the participant's account prior
to the effective date of the request shall be used to purchase shares of Common
Stock of the Company in accordance with Section (e) below. A participant may not
resume making payroll deductions during the Offering Period in which he or she
reduced his or her payroll deductions to zero.

               (d) All payroll deductions made for a participant are credited to
his or her account under this Plan and are deposited with the general funds of
the Company. No interest accrues on the payroll deductions. All payroll
deductions received or held by the Company may be used by the Company for any
corporate purpose, and the Company shall not be obligated to segregate such
payroll deductions.

               (e) On each Purchase Date, so long as this Plan remains in effect
and provided that the participant has not submitted a signed and completed
withdrawal form before that date which notifies the Company that the participant
wishes to withdraw from that Offering Period under this Plan and have all
payroll deductions accumulated in the account maintained on behalf of the
participant as of that date returned to the participant, the Company shall apply
the funds then in the participant's account to the purchase of whole shares of
Common Stock reserved under the option granted to such participant with respect
to the Offering Period to the extent that such option is exercisable on the
Purchase Date. The purchase price per share shall be as specified in Section 8
of this Plan. Any cash remaining in a participant's account after such purchase
of shares shall be refunded to such participant in cash, without interest;
provided, however that any amount remaining in such participant's account on a
Purchase Date which is less than the amount necessary to purchase a full share
of Common Stock of the Company shall be carried forward, without interest, into
the next Purchase Period or Offering Period, as the case may be. In the event
that this Plan has been oversubscribed, all funds not used to purchase shares on
the Purchase Date shall be returned to the participant, without interest. No
Common Stock shall be purchased on a Purchase Date on behalf of any employee
whose participation in this Plan has terminated prior to such Purchase Date.

               (f) As promptly as practicable after the Purchase Date, the
Company shall issue shares for the participant's benefit representing the shares
purchased upon exercise of his or her option.

               (g) During a participant's lifetime, his or her option to
purchase shares hereunder is exercisable only by him or her. The participant
will have no interest or voting right in shares covered by his or her option
until such option has been exercised.

        10.    LIMITATIONS ON SHARES TO BE PURCHASED.

               (a) No participant shall be entitled to purchase stock under this
Plan at a rate which, when aggregated with his or her rights to purchase stock
under all other employee stock purchase plans of the Company or any Subsidiary,
exceeds $25,000 in fair market value, determined as of the Offering Date (or
such other limit as may be imposed by the Code) for each calendar year in which
the employee participates in this Plan. The Company shall automatically suspend
the payroll deductions of any participant as necessary to enforce such limit
provided that when the Company automatically resumes such payroll deductions,
the Company must apply the rate in effect immediately prior to such suspension.

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               (b) No more than two hundred percent (200%) of the number of
shares determined by using eighty-five percent (85%) of the fair market value of
a share of the Company's Common Stock on the Offering Date as the denominator
may be purchased by a participant on any single Purchase Date.

               (c) No participant shall be entitled to purchase more than the
Maximum Share Amount (as defined below) on any single Purchase Date. Prior to
the commencement of any Offering Period or prior to such time period as
specified by the Committee, the Committee may, in its sole discretion, set a
maximum number of shares which may be purchased by any employee at any single
Purchase Date (hereinafter the "MAXIMUM SHARE AMOUNT"). Until otherwise
determined by the Committee, there shall be no Maximum Share Amount. In no event
shall the Maximum Share Amount exceed the amounts permitted under Section 10(b)
above. If a new Maximum Share Amount is set, then all participants must be
notified of such Maximum Share Amount prior to the commencement of the next
Offering Period. The Maximum Share Amount shall continue to apply with respect
to all succeeding Purchase Dates and Offering Periods unless revised by the
Committee as set forth above.

               (d) If the number of shares to be purchased on a Purchase Date by
all employees participating in this Plan exceeds the number of shares then
available for issuance under this Plan, then the Company will make a pro rata
allocation of the remaining shares in as uniform a manner as shall be reasonably
practicable and as the Committee shall determine to be equitable. In such event,
the Company shall give written notice of such reduction of the number of shares
to be purchased under a participant's option to each participant affected.

               (e) Any payroll deductions accumulated in a participant's account
which are not used to purchase stock due to the limitations in this Section 10
shall be returned to the participant as soon as practicable after the end of the
applicable Purchase Period, without interest.

        11. WITHDRAWAL.

               (a) Each participant may withdraw from an Offering Period under
this Plan by signing and delivering to the Company a written notice to that
effect on a form provided for such purpose. Such withdrawal may be elected at
any time prior to the end of an Offering Period, or such other time period as
specified by the Committee.

               (b) Upon withdrawal from this Plan, the accumulated payroll
deductions shall be returned to the withdrawn participant, without interest, and
his or her interest in this Plan shall terminate. In the event a participant
voluntarily elects to withdraw from this Plan, he or she may not resume his or
her participation in this Plan during the same Offering Period, but he or she
may participate in any Offering Period under this Plan which commences on a date
subsequent to such withdrawal by filing a new authorization for payroll
deductions in the same manner as set forth in Section 6 above for initial
participation in this Plan.

               (c) If the Fair Market Value on the first day of the current
Offering Period in which a participant is enrolled is higher than the Fair
Market Value on the first day of any subsequent Offering Period, the Company
will automatically enroll such participant in the subsequent Offering Period.
Any funds accumulated in a participant's account prior to the first day of such
subsequent Offering Period will be applied to the purchase of shares on the
Purchase Date immediately prior to the first day of such subsequent Offering
Period, if any.

        12. TERMINATION OF EMPLOYMENT. Termination of a participant's employment
for any reason, including retirement, death or the failure of a participant to
remain an eligible employee of the Company or of a Participating Subsidiary,
immediately terminates his or her participation in this Plan. In such event, the
payroll deductions credited to the participant's account will be returned to him
or her or, in the case of his or her death, to his or her legal representative,
without interest. For purposes of this Section 12, an employee will not be
deemed to have terminated employment or failed to remain in the continuous
employ of the Company or of a Participating Subsidiary in the case of sick
leave, military leave, or any other leave of absence approved by the Board;
provided that such leave is for a period of not more than ninety (90) days or
reemployment upon the expiration of such leave is guaranteed by contract or
statute.

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        13. RETURN OF PAYROLL DEDUCTIONS. In the event a participant's interest
in this Plan is terminated by withdrawal, termination of employment or
otherwise, or in the event this Plan is terminated by the Board, the Company
shall deliver to the participant all payroll deductions credited to such
participant's account. No interest shall accrue on the payroll deductions of a
participant in this Plan.

        14. CAPITAL CHANGES. Subject to any required action by the stockholders
of the Company, the number of shares of Common Stock covered by each option
under this Plan which has not yet been exercised and the number of shares of
Common Stock which have been authorized for issuance under this Plan but have
not yet been placed under option (collectively, the "RESERVES"), as well as the
price per share of Common Stock covered by each option under this Plan which has
not yet been exercised, shall be proportionately adjusted for any increase or
decrease in the number of issued and outstanding shares of Common Stock of the
Company resulting from a stock split or the payment of a stock dividend (but
only on the Common Stock) or any other increase or decrease in the number of
issued and outstanding shares of Common Stock effected without receipt of any
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration". Such adjustment shall be made by the
Committee, whose determination shall be final, binding and conclusive. Except as
expressly provided herein, no issue by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock subject to an option.

               In the event of the proposed dissolution or liquidation of the
Company, the Offering Period will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the
Committee. The Committee may, in the exercise of its sole discretion in such
instances, declare that this Plan shall terminate as of a date fixed by the
Committee and give each participant the right to purchase shares under this Plan
prior to such termination. In the event of (i) a merger or consolidation in
which the Company is not the surviving corporation (other than a merger or
consolidation with a wholly-owned subsidiary, a reincorporation of the Company
in a different jurisdiction, or other transaction in which there is no
substantial change in the stockholders of the Company or their relative stock
holdings and the options under this Plan are assumed, converted or replaced by
the successor corporation, which assumption will be binding on all
participants), (ii) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their
shares or other equity interest in the Company, (iii) the sale of all or
substantially all of the assets of the Company or (iv) the acquisition, sale, or
transfer of more than 50% of the outstanding shares of the Company by tender
offer or similar transaction, the Plan will continue with regard to Offering
Periods that commenced prior to the closing of the proposed transaction and
shares will be purchased based on the Fair Market Value of the surviving
corporation's stock on each Purchase Date, unless otherwise provided by the
Committee.

               The Committee may, if it so determines in the exercise of its
sole discretion, also make provision for adjusting the Reserves, as well as the
price per share of Common Stock covered by each outstanding option, in the event
that the Company effects one or more reorganizations, recapitalizations, rights
offerings or other increases or reductions of shares of its outstanding Common
Stock, or in the event of the Company being consolidated with or merged into any
other corporation.

        15. NONASSIGNABILITY. Neither payroll deductions credited to a
participant's account nor any rights with regard to the exercise of an option or
to receive shares under this Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 22 below) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be void and
without effect.

        16. REPORTS. Individual accounts will be maintained for each participant
in this Plan. Each participant shall receive promptly after the end of each
Purchase Period a report of his or her account setting forth the total payroll
deductions accumulated, the number of shares purchased, the per share price
thereof and the remaining cash balance, if any, carried forward to the next
Purchase Period or Offering Period, as the case may be.

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        17. NOTICE OF DISPOSITION. Each participant shall notify the Company in
writing if the participant disposes of any of the shares purchased in any
Offering Period pursuant to this Plan if such disposition occurs within two (2)
years from the Offering Date or within one (1) year from the Purchase Date on
which such shares were purchased (the "NOTICE PERIOD"). The Company may, at any
time during the Notice Period, place a legend or legends on any certificate
representing shares acquired pursuant to this Plan requesting the Company's
transfer agent to notify the Company of any transfer of the shares. The
obligation of the participant to provide such notice shall continue
notwithstanding the placement of any such legend on the certificates.

        18. NO RIGHTS TO CONTINUED EMPLOYMENT. Neither this Plan nor the grant
of any option hereunder shall confer any right on any employee to remain in the
employ of the Company or any Participating Subsidiary, or restrict the right of
the Company or any Participating Subsidiary to terminate such employee's
employment.

        19. EQUAL RIGHTS AND PRIVILEGES. All eligible employees shall have equal
rights and privileges with respect to this Plan so that this Plan qualifies as
an "employee stock purchase plan" within the meaning of Section 423 or any
successor provision of the Code and the related regulations. Any provision of
this Plan which is inconsistent with Section 423 or any successor provision of
the Code shall, without further act or amendment by the Company, the Committee
or the Board, be reformed to comply with the requirements of Section 423. This
Section 19 shall take precedence over all other provisions in this Plan.

        20. NOTICES. All notices or other communications by a participant to the
Company under or in connection with this Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

        21. TERM; STOCKHOLDER APPROVAL. After this Plan is adopted by the Board,
this Plan will become effective on the First Offering Date (as defined above).
This Plan shall be approved by the stockholders of the Company, in any manner
permitted by applicable corporate law, within twelve (12) months before or after
the date this Plan is adopted by the Board. No purchase of shares pursuant to
this Plan shall occur prior to such stockholder approval. This Plan shall
continue until the earlier to occur of (a) termination of this Plan by the Board
(which termination may be effected by the Board at any time), (b) issuance of
all of the shares of Common Stock reserved for issuance under this Plan, or (c)
ten (10) years from the adoption of this Plan by the Board.

        22. DESIGNATION OF BENEFICIARY.

               (a) A participant may file a written designation of a beneficiary
who is to receive any shares and cash, if any, from the participant's account
under this Plan in the event of such participant's death subsequent to the end
of an Purchase Period but prior to delivery to him of such shares and cash. In
addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant's account under this Plan in the event
of such participant's death prior to a Purchase Date.

               (b) Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under this
Plan who is living at the time of such participant's death, the Company shall
deliver such shares or cash to the executor or administrator of the estate of
the participant, or if no such executor or administrator has been appointed (to
the knowledge of the Company), the Company, in its discretion, may deliver such
shares or cash to the spouse or to any one or more dependents or relatives of
the participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

        23. CONDITIONS UPON ISSUANCE OF SHARES; LIMITATION ON SALE OF SHARES.
Shares shall not be issued with respect to an option unless the exercise of such
option and the issuance and delivery of such shares pursuant thereto shall
comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange or automated quotation system upon which the shares may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

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        24. APPLICABLE LAW. The Plan shall be governed by the substantive laws
(excluding the conflict of laws rules) of the State of California.

        25. AMENDMENT OR TERMINATION OF THIS PLAN. The Board may at any time
amend, terminate or extend the term of this Plan, except that any such
termination cannot affect options previously granted under this Plan, nor may
any amendment make any change in an option previously granted which would
adversely affect the right of any participant, nor may any amendment be made
without approval of the stockholders of the Company obtained in accordance with
Section 21 above within twelve (12) months of the adoption of such amendment (or
earlier if required by Section 21) if such amendment would:

               (a) increase the number of shares that may be issued under this
Plan; or

               (b) change the designation of the employees (or class of
employees) eligible for participation in this Plan.

               Notwithstanding the foregoing, the Board may make such amendments
to the Plan as the Board determines to be advisable, if the continuation of the
Plan or any Offering Period would result in financial accounting treatment for
the Plan that is different from the financial accounting treatment in effect on
the date this Plan is adopted by the Board.

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                                                                   EXHIBIT 10.08

                                                CONFIDENTIAL TREATMENT REQUESTED

                      FORMFACTOR KEY MANAGEMENT BONUS PLAN

I.      PURPOSE

        To further the success of FormFactor (hereinafter referred to as the
        Company) by enabling the Company to be competitive with the rest of the
        industry in attracting and retaining key talent and to provide an
        incentive, in addition to base salary compensation, to those key
        professionals of the Company who will have a substantial opportunity to
        influence achievement of major corporate objectives and subsequent
        Company growth. This will 1) more closely associate the personal
        interests of such key professionals with Company interests, 2) encourage
        such key professionals to continue as employees of the Company; and 3)
        position FormFactor as a company that provides better-than-market
        rewards for better-than-market performance.

II.     DETERMINATION OF BONUS PAYMENT

        Actual bonus award amounts are based on a combination of specific
        percentage achievement of corporate objectives and specific percentage
        achievement of personal objectives. Percentage participation rates are
        established for each individual based on level of responsibility and
        scope of work in the organization. Specific bonus target percentages
        will be established for each plan year.

III.    CORPORATE OBJECTIVES

        Due to the economic climate and lack of visibility when establishing the
        2002 Operating Plan, the company established an Operating Plan for the
        first half of 2002 only. The company will complete a second half
        Operating Plan prior to the commencement of the second half of FY2002.
        As a result of establishing two half-year operating plans for FY2002,
        the company will establish two sets of indicators to measure the
        achievement of the corporate objectives, one set for the first half of
        2002 and one set for the second half of 2002.

        Attachment A lists the indicators used to measure achievement of the
        corporate objectives component for the first half current year plan.

        Each objective has equal weight. The minimum threshold equals 80% of the
        target (i.e., no payment for that indicator unless 80% of the target is
        reached.) The maximum threshold equals 200% of the target (i.e., for any
        single indicator, no more than 200% of the bonus target amount will be
        paid).

IV.     PERSONAL OBJECTIVES

        Participants will work with their Managers to identify three to five
        personal objectives to be used as achievement indicators for each
        individual participating in the Plan. These objectives should be
        critical to the success of the individual and should tie into the

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

<PAGE>

        overall Corporate business priorities. The applicable Senior Vice
        President must approve each individual's personal objectives. The
        personal objectives component will constitute a pre-determined
        percentage of the total award depending upon the degree of each
        participant's actual achievement of personal goals as determined by the
        appropriate Senior Vice President.

        Each participant's manager will determine whether the participant will
        have one set of personal objectives for FY2002 or two sets of
        objectives, one for the first half of FY2002 and a separate set for the
        second half.

V.      ALLOCATION OF INCENTIVE BONUS

        A.     DEFINITIONS:

        1. CAF = Corporate Achievement Factor defined as the average of the
        percentage achievement of the three corporate objectives (with a minimum
        of 80% and a maximum of 200% for each objective achieved; if the
        percentage achievement is less than 80% for a corporate objective,
        it counts as zero in computing the CAF):

               Percentage of Bookings Target achieved               =        %
               Percentage of Net Sales Target achieved              =        %
               Percentage of Operating Margin Target achieved       = ______ %

                                                            Total   =        %
                                             Total
                                       CAF = -----
                                               3

        2.  PPS = Participant's Proportional Share (%) defined as:
                  -             -            -

<TABLE>
       <S>                <C>                           <C>                     <C>
       Participant's                                    Participant's
       Bonus %            x  (CAF  x # * * * %    +        Personal        x    # * * * %)
                                                          Objectives
                                                         Achievement

        # percentage see Attachment A
</TABLE>

        3.  PIB = Participant's Incentive Bonus defined as: (example)
                  -             -         -

       Participant's
       Individual         x    PPS      =     PERSONAL INCENTIVE BONUS
       Base Salary                            (subject to Override calculation)

        B.     EXAMPLE ONLY:

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

                                       2
<PAGE>

Director-BU at $ * * * base with * * * % bonus % and personal objectives
achievement of 89%. HYPOTHETICAL

<TABLE>
<CAPTION>
                               AOP          RESULT        ACHIEVEMENT %         CAF
                               ---          ------        -------------         ---
       <S>                     <C>          <C>           <C>                   <C>
       Bookings                $ * * *      $ 69.3M             * * * %
       Net Sales               $ * * *      $ 75.0M             * * * %         * * * %
       Operating Margin        $ * * *      $  1.1M             * * * %
</TABLE>

        PPS =  (* * * %) X (* * *  % x * * * %     +          89% X * * * %)
               (* * * %) X (* * * % + * * * %)  =  * * * %

        PIB = $* * *   X  * * * %  =  $* * * .-  = PERSONAL INCENTIVE BONUS

VI.     DEFINITION OF BASE PAY

        An individual's eligible gross earnings for the Plan Year (exclusive of
        overtime, shift premiums, car allowance, bonuses, etc.) will be used in
        calculating the bonus payment.

        For the 2001 Plan Year the 10% reduction in salary for the third and
        fourth quarters will not be factored into the base pay.

VII.    PLAN YEAR

        The Plan Year nets from December 30, 2001- December 28, 2002.

VIII.   MISCELLANEOUS PROVISIONS

        A.     ADMINISTRATION

        The Chairman of the Board of Directors and the Board Compensation
        Committee shall have full power and authority to administer and
        interpret the plan and to adopt such rules and regulations consistent
        with the terms of the Plan as they deem necessary or advisable to carry
        out the provisions of the Plan. The CEO/President may appoint an
        Administrator of the Plan and delegate to such Administrator power to
        administer and interpret the Plan as to such matters as the
        CEO/President may deem necessary.

        B.     TERMINATION OF EMPLOYMENT

        In order to be eligible for the bonus, an employee must be employed with
        FormFactor on the date payouts for the designated plan year occur. If
        prior to the end of the award period a participant's employment
        terminates by way of retirement, normal retirement date, death, or total
        and permanent disability (as determined under the

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

                                       3
<PAGE>

        Company's Long-Term Disability Plan), and the participant would have
        been entitled to the payment of the award if his/her employment had not
        so terminated, payment of the award shall be pro-rated based on the
        number of months of the award period during which the participant was an
        employee. If a participant's employment terminates by reason of death,
        payment of the award shall be made to the person(s) designated as the
        participant's beneficiary under the FormFactor incorporated Retirement
        Plan, and if there is none, to the participant's estate.

        C.     SALE OF COMPANY

        If the Company is sold, or if the Company is a party to a merger or
        consolidation in which it is not the surviving company, all awards will
        be deemed to have been earned at 100% of the target value for the
        current year and will be paid to the applicable participant at that
        point.

        D.     TRANSFER OF RIGHTS

        The rights and interests of a participant under the Plan may not be
        assigned or transferred except by will and the laws of descent or
        distribution.

        E.     RIGHT TO EMPLOYMENT

        Participation in the Plan shall not confer on any employee the right to
        continued employment in the same or any other capacity.

        F.     RIGHTS TO PLAN

        No employee or other person shall have any claim or right to be granted
        an award under the Plan, nor shall participation in the Plan in one year
        grant any right to participate in the Plan in any subsequent year.

        G.     WITHHOLDING

        The Company shall have the right to deduct from all awards paid under
        the Plan any federal, state, local, or foreign taxes required by law to
        be withheld with respect to such awards.

        H.     UNALLOCATED FUNDS

        Monies that are unallocated due to the personal objectives not being
        satisfactorily accomplished, as determined by the President, will remain
        part of the Company's operating funds.

        I.     AMENDMENT AND TERMINATION

        The Board of Directors may amend or suspend the Plan, in whole or in
        part, at any time with respect to the current or any subsequent Plan
        year.

                                       4
<PAGE>

                                  ATTACHMENT A

                       FY2002 MANAGEMENT BONUS PLAN MATRIX

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
Title/Responsibility            Target % Corporate     Target % Personal
-------------------------------------------------------------------------------
<S>                             <C>                    <C>
CEO                              100                      0
-------------------------------------------------------------------------------
Senior Vice-President             80                     20
-------------------------------------------------------------------------------
Vice-President-Corp.            * * *                  * * *
-------------------------------------------------------------------------------
Vice-President-B.U.             * * *                  * * *
-------------------------------------------------------------------------------
Vice-President-Tech. L.C.       * * *                  * * *
-------------------------------------------------------------------------------
Director - BU                   * * *                  * * *
-------------------------------------------------------------------------------
Director - Tech. I.C.           * * *                  * * *
-------------------------------------------------------------------------------
</TABLE>

                       FY2002 CORPORATE BONUS PLAN TARGETS

                          BOOKINGS:                $ * * *

                          NET SALES:               $ * * *

                          OPERATING MARGIN:        $ * * *

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

                                       5
<PAGE>

FORMFACTOR
BONUS PLAN CALCULATIONS
2001

<TABLE>
<CAPTION>
                                                  PAYOUT
DEPARTMENT  PARTICIPANT        ANNUAL      BONUS   FOR     TARGET      TARGET %        ACHIEVEMENT %   BONUS PAYMENT
                               SALARY        %    MONTHS    BONUS   CORP.   PERSONAL  CORP.  PERSONAL  CORP. PERSONAL  TOTAL
<S>        <C>                 <C>         <C>    <C>       <C>     <C>     <C>       <C>     <C>      <C>     <C>     <C>
R&D
                                                            -----                                                      -----
    1000   Ben Eldridge         200,000      40     12      80,000   80%       20%     96.5%   100%    61,760  16,000  77,760

    1005   Carl Reynolds          * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1005   Gaetan Mathieu         * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1005   Ravindra Shenoy        * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1005   Treliant Fang          * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1020   Chuck Miller           * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1040   Thomas Watson          * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1040   Alec Madsen            * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1120   Nick Sporck            * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1120   Roy Henson             * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1085   Stuart Merkadeau       * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    1085   Kenneth Burraston      * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

S&M

    3010  Mark Brandemuehl        * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    3010  Kevin Crowley           * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    2025  Stefan Zschiegner       * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

G&A

    4055   Igor Khandros        240,000      50      12    120,000   100%      0%    96.5%   100%    115,800    0     115,800

    4060   Jens Meyerhoff       200,000      40      12     80,000    80%     20%    96.5%   100%     61,760  16,000   77,500

    4060   Mike Ludwig            * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    4060   Mark Brown             * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    4080   Norm  Donovan          * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    5075   Mark Zeni              * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    4065   Elizabeth Lamb         * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

OPERATIONS

    5095   Harrold Rust           * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    5085   Tom Dozier             * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    9100   Yvonne Hobbs           * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    5115   Larry Levi             * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

           NORTH AMERICAN TOTAL                             * * *                                      * * *   * * *    * * *
           AVG.                                    * * *    * * *                                                       * * *

           NON-US EMPLOYEES

           Hatsukano san        243,750      40       12   97,500     80%      20%     96.5%  71%     75,270  13,845   89,115

           Imai Nobuo             * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

           Kawashimo              * * *    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

           INTERNATIONAL TOTAL                              * * *                                      * * *   * * *    * * *
           AVG.                                             * * *                                                       * * *

           TOTAL COMPANY                                    * * *                                      * * *   * * *    * * *
           AVG.                                             * * *                                                       * * *
                                                           -------                                                      -----
</TABLE>

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]