Document:

exv10w37

 

Exhibit
10.37

AMENDMENT NO. 1 TO

APPLIED MATERIALS, INC.

AMENDED AND RESTATED

EMPLOYEE FINANCIAL ASSISTANCE PLAN

     The Applied Materials, Inc. Employee Financial Assistance Plan, as amended and restated
effective December 9, 2003 (the “Plan”), is hereby further amended as follows:

     1. Section 2.5 of the Plan is hereby amended and restated in its entirety as follows:

     “2.5 Term and Interest of Loans. The term for all loans made
pursuant to the authority set forth in paragraphs 2.1, 2.2, 2.3 and 2.4 above shall
not exceed five years and shall bear interest, if at all, at a rate to be determined
by the authorizing officers. Notwithstanding the foregoing, subject to the approval
set forth in paragraph 2.7.3 below, loans may be extended for a term not to exceed
seven years from the original date of the loan.”

     2. A new Section 2.7 is hereby added to the Plan as follows:

     “2.7 Loan Amendments, Modifications and Extensions.

          2.7.1 The Vice President, Global Human Resources and the Treasurer of the
Company, acting jointly, may authorize amendments, modifications and extensions to
any loans made by the Company pursuant to paragraphs 2.1, 2.2, 2.3, 2.4 and 2.6.

          2.7.2 In the event that the Vice President, Global Human Resources or the
Treasurer of the Company is a recipient of a loan from the Company for which an
amendment, modification or extension is sought, then, notwithstanding the authority
set forth in paragraph 2.7.1 above, authority shall vest in the Chief Financial
Officer and either the Vice President, Global Human Resources or the Treasurer of
the Company, as appropriate, whose loan is not subject to the proposed amendment,
modification or extension.

          2.7.3 Notwithstanding the authority set forth in paragraph 2.7.1 above, the
Chief Financial Officer and the Vice President, Global Human Resources of the
Company, acting jointly, may authorize: (i) the extension of the loan for a term not
to exceed seven years from the original date of the loan, subject to the limitation
set forth in paragraph 2.5 above; and (ii) the forgiveness of all or a portion of a
loan, provided the loan had not been made to either of the aforementioned officers.

          2.7.4 On a loan-by-loan basis and subject to certain parameters

 

 

approved in
advance by the Vice President, Global Human Resources and Treasurer, the Vice
President, Global Human Resources and the Treasurer of the Company, acting jointly,
may delegate their joint authority hereunder to any Assistant Treasurer of the
Company.

          2.7.5 In the event a loan, including a Special Purpose Loan, or Equity Advance
has been made to an employee who later becomes a Section 16 Officer, such loan or
Equity Advance shall become due and payable immediately upon the appointment of such
employee as a Section 16 Officer.”

     3. Except as modified herein, all other provisions of the Plan remain in full force and
effect.exv10w38

 

Exhibit 10.38

APPLIED
MATERIALS, INC.

GLOBAL EXECUTIVE INCENTIVE PLAN

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	SECTION 1 ESTABLISHMENT AND PURPOSE
	 	 	2	 
	 
	 	 	 	 
	1.1 Purpose
	 	 	2	 
	 
	 	 	 	 
	SECTION 2 DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	2.1 “Actual Award”
	 	 	2	 
	 
	 	 	 	 
	2.2 “Base Salary”
	 	 	2	 
	 
	 	 	 	 
	2.3 “Business Unit VP”
	 	 	2	 
	 
	 	 	 	 
	2.4 “Committee”
	 	 	2	 
	 
	 	 	 	 
	2.5 “Company”
	 	 	2	 
	 
	 	 	 	 
	2.6 “Disability”
	 	 	2	 
	 
	 	 	 	 
	2.7 “Earnings Per Share”
	 	 	2	 
	 
	 	 	 	 
	2.8 “Executive”
	 	 	3	 
	 
	 	 	 	 
	2.9 “Individual MBOs”
	 	 	3	 
	 
	 	 	 	 
	2.10 “Maximum Award”
	 	 	3	 
	 
	 	 	 	 
	2.11 “Participant”
	 	 	3	 
	 
	 	 	 	 
	2.12 “Payout Formula”
	 	 	3	 
	 
	 	 	 	 
	2.13 “Performance Goals”
	 	 	3	 
	 
	 	 	 	 
	2.14 “Plan Year”
	 	 	3	 
	 
	 	 	 	 
	2.15 “Retirement”
	 	 	3	 
	 
	 	 	 	 
	2.16 “Target Award”
	 	 	3	 
	 
	 	 	 	 
	SECTION 3 SELECTION OF PARTICIPANTS AND DETERMINATION OF
AWARDS
	 	 	3	 
	 
	 	 	 	 
	3.1 Selection of Participants
	 	 	3	 
	 
	 	 	 	 
	3.2 Determination of Performance Goals
	 	 	4	 
	 
	 	 	 	 
	3.3 Determination of Target Awards
	 	 	4	 
	 
	 	 	 	 
	3.4 Determination of Payout Formula or Formulae
	 	 	4	 
	 
	 	 	 	 
	3.5 Determination of Actual Awards
	 	 	4	 
	 
	 	 	 	 
	SECTION 4 PAYMENT OF AWARDS
	 	 	5	 
	 
	 	 	 	 
	4.1 Right to Receive Payment
	 	 	5	 
	 
	 	 	 	 
	4.2 Timing of Payment
	 	 	5	 
	 
	 	 	 	 
	4.3 Form of Payment
	 	 	5	 

 

 

	 	 	 	 	 
	SECTION 5 ADMINISTRATION
	 	 	5	 
	 
	 	 	 	 
	5.1 Committee is the Administrator
	 	 	5	 
	 
	 	 	 	 
	5.2 Delegation by the Committee
	 	 	5	 
	 
	 	 	 	 
	5.3 Committee Authority
	 	 	5	 
	 
	 	 	 	 
	5.4 Tax Withholding
	 	 	6	 
	 
	 	 	 	 
	SECTION 6 GENERAL PROVISIONS
	 	 	6	 
	 
	 	 	 	 
	6.1 Nonassignability
	 	 	6	 
	 
	 	 	 	 
	6.2 No Effect on Employment
	 	 	6	 
	 
	 	 	 	 
	6.3 No Individual Liability
	 	 	6	 
	 
	 	 	 	 
	6.4 Severability; Governing Law
	 	 	6	 
	 
	 	 	 	 
	6.5 Affiliates of the Company
	 	 	6	 
	 
	 	 	 	 
	SECTION 7 AMENDMENT AND TERMINATION
	 	 	6	 
	 
	 	 	 	 
	7.1 Amendment and Termination
	 	 	6	 

 

 

APPLIED MATERIALS, INC.

GLOBAL EXECUTIVE INCENTIVE PLAN

Section 1

ESTABLISHMENT AND PURPOSE

1.1 Purpose. Applied Materials, Inc. having established the Applied Materials, Inc.
Global Executive Incentive Plan (the “Plan”) effective as of September 6, 2000, hereby amends and
restates the Plan effective as of December 10, 2004. The Plan is intended to increase shareholder
value and the success of the Company by motivating executives (a) to perform to the best of their
abilities, and (b) to achieve the Company’s objectives. The Plan’s goals are to be achieved by
providing such executives with incentive awards based on the achievement of goals relating to their
individual performance, the performance of the individual’s business unit and the performance of
the Company.

DEFINITIONS

The following words and phrases shall have the following meanings unless a different meaning is
plainly required by the context:

2.1 “Actual Award” means as to any Plan Year, the actual award (if any) payable to a
Participant for the Plan Year. Each Actual Award is determined by the Payout Formula for the Plan
Year, subject to the Committee’s authority under Section 3.5 to reduce or increase the award
otherwise determined by the Payout Formula.

2.2 “Base Salary” means as to any Plan Year, 100% of the Participant’s annualized salary
rate on the last day of Plan participation during the Plan Year. A weighted average annualized
salary rate will be used for certain mid Plan Year status changes including but not limited to
part-time schedules, transfers to other countries and job scope reductions. Such Base Salary shall
be before both (a) deductions for taxes or benefits, and (b) deferrals of compensation pursuant to
Company-sponsored plans.

2.3 “Business Unit VP” Business Unit Vice President means the top level executive of a unit
(“unit” is determined at the beginning of the plan year by the committee and generally includes
Product Groups, Accounts & Support Functions)

2.4 “Committee” means the CEO or a committee appointed by the CEO to administer the Plan.

2.5 “Company” means Applied Materials, Inc., a Delaware corporation.

2.6 “Disability” means a permanent and total disability determined in accordance with
uniform and nondiscriminatory standards adopted by the Committee from time to time.

2.7 “Earnings Per Share” means as to any Plan Year, the Company’s Net Income or a business
unit’s Pro Forma Net Income, divided by a weighted average number of common shares outstanding and
dilutive common equivalent shares deemed outstanding.

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2.8 “Executive” means any employee in Global Job Group Senior Executive through x50 with
the title of Director, Senior Director, Managing Director, Appointed Vice President, Corporate Vice
President, Group Vice President, Senior Vice President or Executive Vice President.

2.9 “Individual MBOs” means as to a Participant for any Plan Year, the objective and
measurable goals set by a “management by objectives” process and approved by the Committee at their
discretion or the Business Unit Vice President at his/her discretion.

2.10 “Maximum Award” means as to any Participant for any Plan Year, the maximum amount
that may be paid to a participant for any Plan Year.

2.11 “Participant” means as to any Plan Year, an executive who has been selected by and in
the discretion of the Committee or the Business Unit Vice President for participation in the Plan
for that Plan Year.

2.12 “Payout Formula” means as to any Plan Year, the formula or payout matrix established
by the CEO or the Committee in order to determine the Actual Awards (if any) to be paid to
Participants. The formula or matrix may differ from Participant to Participant and may differ from
year to year.

2.13 “Performance Goals” means the goal(s) (or combined goal(s)) determined by the
Committee (in its discretion for Officers) or the Business Unit Vice President (at his/her
discretion for non- Officer executives) to be applicable to a Participant for a Plan Year. As
determined by the CEO, Committee or the Business Unit Vice President, the Performance Goals
applicable to each Participant shall provide for a targeted level or levels of achievement using
both financial and operational performance measures. The Performance Goals may differ from
Participant to Participant.

2.14 “Plan Year means the fiscal year of the Company.

2.15 “Retirement” means, with respect to any Participant, a termination of his or her
employment with the Company and all affiliates pursuant to any retirement program adopted by the
Company.

2.16 “Target Award” means the target award payable under the Plan to a Participant for the
Plan Year, expressed as a percentage of his or her Base Salary, as determined by the Committee or
the Business Unit Vice President in accordance with Section 3.3.

SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS

3.1 Selection of Participants. At the start of each fiscal year, the Committee in its
sole discretion, shall select the executives of the Company who shall be Participants for the Plan
Year. Participation in the Plan is in the sole discretion of the Committee and on a Plan Year by
Plan Year basis. Accordingly, an executive who is a Participant for a given Plan Year in no way is
guaranteed or assured of being selected for participation in any subsequent Plan Year or Years.
Additionally, at the start of each fiscal year the Business Unit Vice President shall select the

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executives of the Company (below the Officer level) who shall participate in the Plan.
Participation below the Officer level is at the full discretion of the Business Unit Vice
President, and on a Plan Year by Plan Year basis. Accordingly, an executive who is a Participant
for a given Plan Year in no way is guaranteed or assured of being selected for participation in any
subsequent Plan Year or Years. Any level of Executive who participates in the Plan is not eligible
for any other Company incentive Plan (milestone Plans, Profit Sharing, etc.). An executive must be
enrolled in the Plan by the last business day of the third fiscal quarter in order to be eligible
to participate in the Plan for that fiscal year.

3.2 Determination of Performance Goals. The Committee, in its sole discretion, shall
establish the Performance Goals for each Officer Participant for the Plan Year. Such Performance
Goals shall be set forth in writing. The Business Unit Vice President, in his/her sole discretion,
shall establish the Performance Goals for each non- Officer Executive Participant for the Plan
Year. Such Performance Goals shall be set forth in writing.

3.3 Determination of Target Awards. The Committee, in its sole discretion, shall
establish a Target Award for each Executive Officer Participant. The CEO or the Committee in its
sole discretion shall determine each Participant’s Target Award, and each Target Award shall be set
forth in writing. The Business Unit Vice President, in his/her sole discretion, shall establish a
Target Award for each non- Officer Executive Participant. Each non-Officer Executive Participant’s
Target Award shall be determined by the Business Unit Vice President in his/her sole discretion,
and each Target Award shall be set forth in writing.

3.4 Determination of Payout Formula or Formulae. The Committee, in its sole discretion,
shall establish a Payout Formula or Formulae for purposes of determining the Actual Award (if any)
payable to each Participant. Each Payout Formula shall (a) be in writing, (b) be based on a
comparison of actual performance to the Performance Goals, (c) provide for the payment of a
Participant’s Target Award if the Performance Goals for the Plan Year are achieved, and (d) provide
for an Actual Award greater than or less than the Participant’s Target Award, depending upon the
extent to which actual performance exceeds or falls below the Performance Goals. Notwithstanding
the preceding, no Participant’s Actual Award under the Plan may exceed his or her Maximum Award.
In addition, no payments shall be made under the Plan if the Company does not achieve a profit
before tax of 10%. If the Company’s profit before tax is greater than 5% but less than 10%, Plan
participants will receive a payout equal to the US profit sharing rate.

3.5 Determination of Actual Awards . After the end of each Plan Year, the Committee (for
Executive officers) or the Business Unit Vice President (for non- Officer Executives) shall
determine the extent to which the Performance Goals applicable to each Participant for the Plan
Year were achieved or exceeded. The Actual Award for each Participant shall be determined by
applying the Payout Formula to the level of actual performance. Notwithstanding any contrary
provision of the Plan, (a) the Committee, in its sole discretion, or the Business Unit Vice
President (for non-Officer executives) in his/her sole discretion may increase, eliminate or reduce
the Actual Award payable to any Participant that which otherwise would be payable under the Payout
Formula. If a Participant terminates employment with the Company prior to the end of the fiscal
year for a reason other than Retirement, Disability or death, he or she shall

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not be
entitled to the payment of an Actual Award for the Plan Year. An Award will be paid within two and
one-half calendar months of the end of the Plan year to the estate of a deceased Participant, or to
any Participant who terminates employment on account of retirement or disability during the Plan
Year. The award will be determined based on the participant’s level of achievement against the
Performance Goals and is at the full discretion of the Committee. For Participants who are not
enrolled in the Plan for a full Plan year due to leave of absence or disability, the award will be
determined based on the participant’s level of achievement against the Performance Goals and is at
the full discretion of the Committee. For Participants who join the Plan after the start of the
Plan Year, but before the last business day of the third fiscal quarter, the Target Award will be
pro-rated for their time in the Plan (a partial month shall be treated as a full calendar month)
and the Payout Formula shall be applied to the pro-rated Target Award and the level of actual
performance.

PAYMENT OF AWARDS

4.1 Right to Receive Payment Each Actual Award that may become payable under the Plan
shall be paid solely from the general assets of the Company. Nothing in this Plan shall be
construed to create a trust or to establish or evidence any Participant’s claim of any right other
than as an unsecured general creditor with respect to any payment to which he or she may be
entitled.

4.2 Timing of Payment. Payment of each Actual Award shall be made within two and
one-half calendar months after the end of the Plan Year during which the Award was earned (other
then employees on personal leave of absence on the last day of the Plan Year). In the case of Plan
Participants who were on personal leave of absence, on the last day of the Plan Year, the payout
will not be made until the employee has returned to work for 90 days.

4.3 Form of Payment. Each Actual Award normally shall be paid in cash (or its equivalent)
in a single lump sum.

ADMINISTRATION

5.1 Committee is the Administrator. The Plan shall be administered by the Committee.

5.2 Delegation by the Committee. The Committee, in its sole discretion and on such terms
and conditions as it may provide, may delegate all or any part of its authority and powers under
the Plan to one or more officers or employees of the Company. As of the effective date of the Plan
and until otherwise determined by the Committee, each Business Unit Vice President shall exercise
the powers of the Committee under Section 3, but only with respect to Executives and Participants
who are direct reports of the Business Unit Vice President. Notwithstanding the preceding, each
decision, action or determination under the Plan by any Business Unit Vice President shall be
subject to change by the Committee.

5.3 Committee Authority the Committee shall have all discretion and authority necessary or
appropriate to administer the Plan and to interpret the provisions of the Plan. Any determination,
decision or action of the Committee in connection with the construction, interpretation,
administration or application of the Plan (or any delegate of the committee) shall be final,

5

 

conclusive, and binding upon all persons, and shall be given the maximum deference permitted by
law.

5.4 Tax Withholding The Company shall withhold all applicable taxes from any payment,
including (but not limited to) any income, payroll, employment or other taxes

GENERAL PROVISIONS

6.1 Nonassignability. A Participant shall have no right to assign or transfer any
interest under this Plan.

6.2 No Effect on Employment. The establishment and subsequent operation of the Plan,
including eligibility as a Participant, shall not be construed as conferring any legal or other
rights upon any Participant for the continuation of his or her employment for any Plan Year or any
other period. Employment with the Company is on an at-will basis only. The Company expressly
reserves the right, which may be exercised at any time and without regard to when during a Plan
Year such exercise occurs, to terminate any individual’s employment with or without cause, and to
treat him or her without regard to the effect which such treatment might have upon him or her as a
Participant.

6.3 No Individual Liability. No member of the Committee or the Board, or any officer or
employee of the Company, shall be liable for any determination, decision or action made in good
faith with respect to the Plan or any award under the Plan.

6.4 Severability; Governing Law. If any provision of the Plan is found to be invalid or
unenforceable, such provision shall not affect the other provisions of the Plan, and the Plan shall
be construed in all respects as if such invalid provision had been omitted. The provisions of the
Plan shall be governed by and construed in accordance with the laws of the State of California,
with the exception of California’s conflict of laws provisions.

6.5 Affiliates of the Company. Requirements referring to employment with the Company or
payment of awards may, in the Committee’s discretion, be performed through the Company or any
affiliate of the Company.

AMENDMENT AND TERMINATION

7.1 Amendment and Termination. The Committee may amend or terminate the Plan at any time
and for any reason.

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