Document:

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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.

        * * * The minimum threshold equals * * * % of the target (i.e., no
        payment for that indicator unless * * * % of the target is reached.) The
        maximum threshold equals * * * % of the target (i.e., for any single
        indicator, no more than * * * % 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

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

<PAGE>

        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 * * * % and a maximum of * * * % for each objective achieved; if the
        percentage achievement is less than * * * % 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   =        %

                                       CAF = * * *

        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:

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

                                       2
<PAGE>

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

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

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

                       FY2001 MANAGEMENT BONUS PLAN MATRIX

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

                       FY2001 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    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    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        241,900    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    4060   Jens Meyerhoff       206,000    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

    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        255,000    * * *   * * *    * * *   * * *     * * *   * * *   * * *    * * *   * * *    * * *

           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.<PAGE>
                                                                   EXHIBIT 10.09

                     SECURED FULL RECOURSE PROMISSORY NOTE
                              Livermore, California

$_________________________                            ____________________, 20__

Reference is made to that certain Stock Option Agreement (the "PURCHASE
AGREEMENT") of even date herewith, by and between the undersigned (the
"PURCHASER") and FormFactor, Inc., a Delaware corporation (the "COMPANY"),
issued to Purchaser under the Company's Management Incentive Option Plan (the
"PLAN"). This Secured Full Recourse Promissory Note (the "NOTE") is being
tendered by Purchaser to the Company as part of the total purchase price of the
Shares (as defined below) pursuant to the Purchase Agreement.

        1. OBLIGATION. In exchange for the issuance to the Purchaser pursuant to
the Purchase Agreement of ______________ shares of the Company's Common Stock
(the "SHARES"), receipt of which is hereby acknowledged, Purchaser hereby
promises to pay to the order of the Company on or before _______________, _____,
at the Company's principal place of business, or at such other place as the
Company may direct, the principal sum of ________________________ Dollars
($__________) together with interest compounded semi-annually on the unpaid
principal at the rate of _________ percent (___%), which rate is not less than
the minimum rate established pursuant to Section 1274(d) of the Internal Revenue
Code of 1986, as amended, on the earliest date on which there was a binding
contract in writing for the purchase of the Shares; provided, however, that the
rate at which interest will accrue on unpaid principal under this Note will not
exceed the highest rate permitted by applicable law. All payments hereunder
shall be made in lawful tender of the United States.

        2. SECURITY. Performance of Purchaser's obligations under this Note is
secured by a security interest in the Shares granted to the Company by Purchaser
under a Stock Pledge Agreement dated of even date herewith between the Company
and Purchaser (the "PLEDGE AGREEMENT").

        3. EVENTS OF DEFAULT. Purchaser will be deemed to be in default under
this Note upon the occurrence of any of the following events (each an "EVENT OF
DEFAULT"): (i) upon Purchaser's failure to make any payment when due under this
Note; which failure shall continue for a period of ten (10) days after such due
date; (ii) Purchaser is Terminated (as defined in the Plan) for any reason;
(iii) the failure of any representation or warranty in the Pledge Agreement to
have been true, the failure of Purchaser to perform any obligation under the
Pledge Agreement, or upon any other breach by the Purchaser of the Pledge
Agreement; (iv) any voluntary or involuntary transfer of any of the Shares or
any interest therein (except a transfer to the Company); (v) upon the filing
regarding the Purchaser of any voluntary or involuntary petition for relief
under the United States Bankruptcy Code or the initiation of any proceeding
under federal law or law of any other jurisdiction for the general relief of
debtors; or (vi) upon the execution by Purchaser of an assignment for the
benefit of creditors or the appointment of a receiver, custodian, trustee or
similar party to take possession of Purchaser's assets or property.

        4. ACCELERATION; REMEDIES ON DEFAULT. Upon the occurrence of any Event
of Default, at the option of the Company, all principal and other amounts owed
under this Note shall become immediately due and payable without notice or
demand on the part of the Company, and the Company will have, in addition to its
rights and remedies under this Note, the

<PAGE>

Pledge Agreement, full recourse against any real, personal, tangible or
intangible assets of Purchaser, and may pursue any legal or equitable remedies
that are available to it.

        5. RULE 144 HOLDING PERIOD. PURCHASER UNDERSTANDS THAT THE HOLDING
PERIOD SPECIFIED UNDER RULE 144(d) OF THE SECURITIES AND EXCHANGE COMMISSION
WILL NOT BEGIN TO RUN WITH RESPECT TO SHARES PURCHASED WITH THIS NOTE UNTIL
EITHER (i) THE EXERCISE PRICE OF SUCH SHARES IS PAID IN FULL IN CASH OR BY OTHER
PROPERTY ACCEPTED BY THE COMPANY, OR (ii) THIS NOTE IS SECURED BY COLLATERAL,
OTHER THAN THE SHARES THAT HAVE NOT BEEN FULLY PAID FOR IN CASH, HAVING A FAIR
MARKET VALUE AT LEAST EQUAL TO THE AMOUNT OF PURCHASER'S THEN OUTSTANDING
OBLIGATION UNDER THIS NOTE (INCLUDING ACCRUED INTEREST).

        6. PREPAYMENT. Prepayment of principal and/or other amounts owed under
this Note may be made at any time without penalty. Unless otherwise agreed in
writing by the Company, each payment will be applied to the extent of available
funds from such payment in the following order: (i) first to the accrued and
unpaid costs and expenses under the Note or the Pledge Agreement, (ii) then to
accrued but unpaid interest, and (iii) lastly to the outstanding principal.

        7. GOVERNING LAW; WAIVER. The validity, construction and performance of
this Note will be governed by the internal laws of the State of California,
excluding that body of law pertaining to conflicts of law. Purchaser hereby
waives presentment, notice of non-payment, notice of dishonor, protest, demand
and diligence.

        8. ATTORNEYS' FEES. If suit is brought for collection of this Note,
Purchaser agrees to pay all reasonable expenses, including attorneys' fees,
incurred by the holder in connection therewith whether or not such suit is
prosecuted to judgment.

        IN WITNESS WHEREOF, Purchaser has executed this Note as of the date and
year first above written.

---------------------------------------       ----------------------------------
    Purchaser's Name [type or print]          Purchaser's Signature

<PAGE>

                          FULL RECOURSE PROMISSORY NOTE
                              Livermore, California

$_________________________                            ____________________, 19__

        FOR VALUE RECEIVED, ______________ (the "Maker") promises to pay to
FormFactor, Inc., a Delaware corporation (the "Company"), or order, the
principal sum of __________________________ ($____________) (such amount
representing the total purchase price of the Common Stock minus the payment
received for the aggregate value of the par value of the Common Stock), together
with interest on the unpaid principal hereof from the date hereof at the rate of
____% per annum, compounded semiannually.

        Subject to the following two sentences, principal and interest shall be
due and payable on the date this Note is due and payable. Should the undersigned
fail to make full payment of any installment of principal or interest for a
period of 10 days or more after the due date thereof, or should the
undersigned's employment or consulting relationship with the Company be
terminated for any reason (or for no reason), the whole unpaid balance on this
Note of principal and interest shall become immediately due at the option of the
holder of this Note. This promissory note shall be due and payable (if not
previously due and payable or paid in fact) upon the earliest to occur of any of
the following: (i) the date the Maker is entitled to sell shares in an
established public market or (ii) the date the Maker receives cash from an
acquiror of the Company in connection with such acquisition or (iii) the date
the Maker is entitled to sell any securities received in any such acquisition or
(iv) the sixth anniversary of the date of this Note. Payments of principal and
interest shall be made in lawful money of the United States of America.

        The undersigned may at any time prepay all or any portion of the
principal or interest owing hereunder.

        This Note is subject to the terms of a Restricted Stock Purchase
Agreement, dated as of ______________. This Note is secured by a pledge of the
Company's Common Stock under the terms of a Security Agreement of even date
herewith and is subject to all the provisions thereof.

        Should any action be instituted for the collection of this Note, the
reasonable costs and attorneys' fees therein of the holder shall be paid by the
undersigned.

        THE HOLDER OF THlS NOTE MAY PROCEED AGAINST ANY ASSETS OF THE MAKER, OR
AGAINST THE COLLATERAL SECURING THIS NOTE, OR BOTH, IN THE EVENT OF DEFAULT.

Name: ____________________________              ________________________________

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