Document:

exv10w8

Exhibit 10.8

MKS INSTRUMENTS, INC.

Restricted Stock Unit Agreement

Granted Under the 2004 Stock Incentive Plan

     AGREEMENT made                      (the “Grant Date”), between MKS Instruments, Inc., a Massachusetts
corporation (the “Company”), and «First_Name» «Last_Name» (the “Participant”).

     For valuable consideration, receipt of which is acknowledged, the parties hereto agree as
follows:

     1. General.

The Company has granted to the Participant restricted stock units (“RSUs”) with respect to the
number of shares set forth in Exhibit A hereto (the “Shares”) of common stock, no par value, of the
Company (“Common Stock”), subject to the terms and conditions set forth in this Agreement and in
the Company’s 2004 Stock Incentive Plan (the “Plan”). The RSUs represent a promise by the Company
to deliver Shares upon vesting.

     (a) Definitions. “Forfeiture” shall mean any forfeiture of RSUs pursuant to Section
2. “Vesting Date” is defined on Exhibit A hereto. “Determination Date” (if applicable) is defined
on Exhibit A hereto. For purposes of this Agreement, “employ” or “employment” with the Company
shall include employment with a parent or subsidiary of the Company as defined in Sections 424(e)
or (f) of the Internal Revenue Code.

     (b) Vesting Period. Subject to the terms and conditions of this Agreement (including
the Forfeiture provisions described in Section 2 below), the RSUs shall vest according to the terms
set forth in Exhibit A. As soon as practicable after each applicable Vesting Date, but in any
event, within the period ending on the later to occur of the date that is 2 1/2 months from the end
of (i) the Participant’s tax year that includes the Vesting Date or (ii) the Company’s tax year
that includes the Vesting Date, the Company shall instruct its transfer agent to deposit the Shares
subject to the RSUs into the Participant’s existing equity account at Fidelity Stock Plan Services,
LLC, or such other broker with which the Company has established a relationship (“Broker”), subject
to payment in accordance with Section 6 of all applicable withholding taxes.

     2. Forfeiture.

     (a) Cessation of Employment. In the event that the Participant ceases to be employed
by the Company for any reason or no reason (except for death, disability or retirement), with or
without cause, prior to a Vesting Date, all of the Participant’s unvested RSUs shall automatically
be forfeited as of such cessation. In the event that the Participant ceases to be employed by the
Company by reason of death, disability or retirement prior to a Vesting Date, then 100% of the
Participant’s RSUs shall become immediately and fully vested and shall no longer be subject to the
Forfeiture provisions under this Agreement.

 

 

For the purpose of this Section 2, “disability” shall mean disability as defined in Section
216(i)(1) of the U.S. Social Security Act.

“Retirement” means a voluntary termination of employment by the Participant after he or she is at
least age sixty (60) and has a combination of years of age plus Years of Service with the Company
equal to seventy (70) or more. “Years of Service” means the total number of days of employment
since Participant’s original hire with the Company (or subsidiary of the Company, provided that
service with a subsidiary shall only be counted towards Years of Service during the time in which
such subsidiary is owned (directly or indirectly) by the Company) and provided that in the event
the employee left or was terminated and then rehired by the Company, the Company shall include
previous employment period in the calculation of the Years of Service provided that the absence
from the Company or subsidiary has been five (5) years or less and only if the total number of days
employed by the Company (or its subsidiary, as provided above) exceeds the total number of days
that the employee was not employed by the Company (or its subsidiary, as provided above).

     (b) Change in Control. Notwithstanding the foregoing, if, prior to any Vesting Date,
and within two years after the effectiveness of a Change in Control (as defined below), the
Participant is (i) terminated by the Company without Cause (as defined below) or (ii) terminates
his employment for Good Reason (as defined below), then, 100% of the Participant’s RSUs shall
become immediately and fully vested and shall no longer be subject to the Forfeiture provisions
under this Agreement. For purposes of this section “Change in Control” means the first to
occur of any of the following events: (I) any “person” (as that term is used in Section 13 and
14(d)(2) of the Securities Exchange Act of 1934 (“Exchange Act”)) becomes the beneficial owner (as
that term is used in Section 13(d) of the Exchange Act), directly or indirectly, of fifty percent
(50%) or more of the Company’s capital stock entitled to vote in the election of directors; (II)
the shareholders of the Company approve any consolidation or merger of the Company, other than a
consolidation or merger of the Company in which the holders of the common stock of the Company
immediately prior to the consolidation or merger hold more than fifty percent (50%) of the common
stock of the surviving corporation immediately after the consolidation or merger; or (III) the
shareholders of the Company approve the sale or transfer of all or substantially all of the assets
of the Company to parties that are not within a “controlled group of corporations” (as defined in
Code Section 1563) in which the Company is a member. For purposes of this Agreement,
“Cause” shall mean conviction for the commission of a felony, willful failure by the
Participant to perform his responsibilities to the Company, or willful misconduct by the
Participant. For purposes of this section, “Good Reason” shall mean termination of the
Participant’s employment by the Participant within 90 days following (I) a material diminution in
the Participant’s positions, duties and responsibilities from those described in the Participant’s
Employment Agreement, (II) a material reduction in the Participant’s base salary (other than a
reduction which is part of a general salary reduction program affecting senior executives of the
Company), (III) a material reduction in the aggregate value of the pension and welfare benefits
provided to the Participant from those in effect prior to the Change in Control (other than a
reduction which is proportionate to the reductions applicable to other senior executives pursuant
to a cost-saving plan that includes all senior executives), (IV) a material breach of any provision
of the Participant’s Employment Agreement by the Company or (V) the Company’s requiring the
Participant to be based at a location that creates for the Participant a one way commute in excess
of 60 miles from his primary residence, except for required travel on the Company’s business to an
extent substantially consistent with the business travel obligations of the

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Participant under the Participant’s Employment Agreement. Notwithstanding the foregoing, a
termination shall not be treated as a termination for Good Reason (I) if the Participant shall have
consented in writing to the occurrence of the event giving rise to the claim of termination for
Good Reason or (II) unless the Participant shall have delivered a written notice to the Company
within 30 days of his having actual knowledge of the occurrence of one of such events stating that
he intends to terminate his employment for Good Reason and specifying the factual basis for such
termination, and such event, if capable of being cured, shall not have been cured within 30 days of
the receipt of such notice.

     3. Restrictions on Transfer.

     The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of,
by operation of law or otherwise (collectively “transfer”) any RSUs, or any interest therein,
except that the Participant may transfer such RSUs (i) to or for the benefit of any spouse,
children, parents, uncles, aunts, siblings, grandchildren and any other relatives approved by the
Board of Directors (collectively, “Approved Relatives”) or to a trust established solely for the
benefit of the Participant and/or Approved Relatives, provided that such RSUs shall remain
subject to this Agreement (including without limitation the terms of Forfeiture and the
restrictions on transfer set forth in this Section 3) and such permitted transferee shall, as a
condition to such transfer, deliver to the Company a written instrument confirming that such
transferee shall be bound by all of the terms and conditions of this Agreement.

     4. Provisions of the Plan.

          This Agreement is subject to the provisions of the Plan, a copy of which is furnished to the
Participant with this Agreement.

     5. No Compensation Deferral. Neither the Plan nor this Agreement is intended to
provide for an elective deferral of compensation that would be subject to Section 409A (“Section
409A”) of the U.S. Internal Revenue Code of 1986, as amended. The Company reserves the right, to
the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend
or modify the Plan and/or this Agreement to ensure that no awards (including without limitation,
the RSUs) become subject to the requirements of Section 409A.

     6. Withholding Taxes.

     (a) The Company’s obligation to deliver Shares to the Participant upon the vesting of RSUs
shall be subject to the satisfaction of all income tax (including federal, state and local taxes),
social insurance, payroll tax, payment on account or other tax related withholding requirements
(“Withholding Taxes”). In order to satisfy all Withholding Taxes due upon vesting of the
Participant’s RSUs, the Participant agrees to the following:

     (b) As a condition to receiving any Shares upon vesting of the RSUs, on the date of this
Agreement, the Participant hereby irrevocably instructs the Company to take the actions described
in this subsection 6(b). On each Vesting Date, the Participant hereby elects to satisfy all
Withholding Taxes obligation then due through the retention by the Company of Shares. Accordingly,
the Participant hereby instructs the Company, with no further action by the

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Participant, on each Vesting Date to deduct and retain from the number of Shares to which the
Participant is entitled from the RSUs then scheduled to vest such number of Shares as is equal to
the value of the Withholding Taxes. The Participant understands that the fair market value of the
surrendered Shares will be based on the closing price of the Company’s Common Stock on the trading
day preceding the Vesting Date.

     (c) Participant has reviewed with the Participant’s own tax advisors the federal, state, local
and foreign tax consequences of this grant and the transactions contemplated by this Agreement.
The Participant is relying solely on such advisors and not on any statements or representations of
the Company or any of its agents. The Participant understands that the Participant (and not the
Company) shall be responsible for the Participant’s own tax liability that may arise as a result of
this grant or the transactions contemplated by this Agreement.

     (d) The Participant represents to the Company that, as of the date hereof, he/she is not aware
of any material nonpublic information about the Company or the Common Stock. The Participant and
the Company have structured this Agreement to constitute a “binding contract” relating to the
retention by the Company of Common Stock pursuant to this Section 6, consistent with the
affirmative defense to liability under Section 10(b) of the Securities Exchange Act of 1934 under
Rule 10b5-1(c) promulgated under such Act.

     7. Nature of the Grant. In signing this Agreement, the Participant acknowledges that:

(a) the Plan is established voluntarily by the Company, it is discretionary in nature and
may be modified, amended, suspended or terminated by the Company at any time, unless
otherwise provided in the Plan and this Agreement;

(b) the grant of RSUs is voluntary and occasional and does not create any contractual or
other right to receive future awards of RSUs, or benefits in lieu of RSUs even if RSUs have
been awarded repeatedly in the past;

(c) all decisions with respect to future grants of RSUs, if any, will be at the sole
discretion of the Company;

(d) the Participant’s participation in the Plan is voluntary;

(e) RSUs are an extraordinary item that do not constitute compensation of any kind for
services of any kind rendered to the Company or to the Participant’s employer, and RSUs are
outside the scope of the Participant’s employment contract, if any;

(f) RSUs are not part of normal or expected compensation or salary for any purpose,
including, but not limited to, calculation of any severance, resignation, termination,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement
benefits or similar payments and in no event should be considered as compensation for, or
relating in any way to, past services for the Company or the Participant’s employer;

(g) the future value of the underlying Shares is unknown and cannot be predicted with
certainty;

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(h) if the Participant receives Shares upon vesting, the value of such Shares acquired on
vesting of RSUs may increase or decrease in value;

(i) in consideration of the grant of RSUs, no claim or entitlement to compensation or
damages arises from termination of the RSUs or diminution in value of the RSUs or Shares
received upon vesting of RSUs resulting from termination of the Participant’s employment by
the Company or the Participant’s employer (for any reason whatsoever and whether or not in
breach of local labor laws) and the Participant irrevocably releases the Company and his or
her employer from any such claim that may arise; if, notwithstanding the foregoing, any such
claim is found by a court of competent jurisdiction to have arisen, then, by signing this
Agreement, the Participant shall be deemed irrevocably to have waived his or her entitlement
to pursue such claim; and

(j) further, if the Participant ceases to be a employee (whether or not in breach of local
labor laws), the Participant’s right to receive RSUs and vest under the Plan, if any, will
terminate effective as of the date that the Participant is no longer actively employed by
the Company and will not be extended by any notice period mandated under local law (e.g.,
active employment would not include a period of “garden leave” or similar period pursuant to
local law); the Committee shall have the exclusive discretion to determine when the
Participant is no longer actively employed for purposes of the Plan.

     8. Data Privacy Notice and Consent. The Participant hereby explicitly and
unambiguously consents to the collection, use and transfer, in electronic or other form, of his or
her personal data as described in this paragraph, by and among, as applicable, the Participant’s
employer and the Company and its subsidiaries and affiliates for, among other purposes,
implementing, administering and managing the Participant’s participation in the Plan. The
Participant understands that the Company and its subsidiaries hold certain personal information
about the Participant, including the Participant’s name, home address and telephone number, date of
birth, social security number or identification number, salary, nationality, job title, any Shares
or directorships held in the Company, details of all options or any other entitlement to Shares
awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor, for the
purpose of managing and administering the Plan (“Data”). The Participant further understands that
the Company and/or its subsidiaries will transfer Data amongst themselves as necessary for
employment purposes, including implementation, administration and management of the Participant’s
participation in the Plan, and that the Company and/or any of its subsidiaries may each further
transfer Data to Broker or such other stock plan service provider or other third parties assisting
the Company with processing of Data. The Participant understands that these recipients may be
located in the United States, and that the recipient’s country may have different data privacy laws
and protections than in the Participant’s country. The Participant authorizes them to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the purposes described
in this section, including any requisite transfer to Broker or such other stock plan service
provider or other third party as may be required for the administration of the Plan and/or the
subsequent holding of Shares of stock on the Participant’s behalf. The Participant understands
that he or she may, at any time, request access to the Data, request any necessary amendments to it
or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his
or her local human

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resources representative. The Participant understands, however, that withdrawal of consent
may affect the Participant’s ability participate in or realize benefits from the Plan. For more
information on the consequences of refusal to consent or withdrawal of consent, the Participant
understands that he or she may contact his or her local human resources representative.

     9. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the RSUs pursuant to Section 1 and Exhibit A hereof is earned only in accordance with the terms
of such sections. The Participant further acknowledges and agrees that the transactions
contemplated hereunder and the vesting schedule set forth herein do not constitute an express or
implied promise of continued engagement as an employee for the vesting period, for any period, or
at all.

          (b) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (c) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

          (d) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 3 of this Agreement.

          (e) Notice. All notices required or permitted hereunder shall be in writing and
deemed effectively given upon personal delivery or five days after deposit in the United States
Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto
at the address shown beneath his or its respective signature to this Agreement, or at such other
address or addresses as either party shall designate to the other in accordance with this Section
9(e).

          (f) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          (g) Language. If the Participant has received this Agreement or any other document
related to the Plan translated into a language other than English and if the translated version is
different than the English version, the English version will control.

          (h) Electronic Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to participation in the Plan, RSUs granted under the Plan or future RSUs that
may be granted under the Plan by electronic means or to request the Participant’s consent to
participate in the Plan by electronic means. The Participant hereby consents to receive such
documents by electronic delivery and, if requested, to agree to participate in the Plan through an
on-

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line or electronic system established and maintained by the Company or another third party
designated by the Company.

          (i) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersedes all prior agreements and understandings, relating to the
subject matter of this Agreement.

          (j) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (k) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the Commonwealth of Massachusetts without regard to any
applicable conflicts of laws.

          (l) The Participant’s Acknowledgments. The Participant acknowledges that he or she:
(i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of the Participant’s own choice or has voluntarily
declined to seek such counsel; and (iii) understands the terms and consequences of this Agreement;
and (iv) is fully aware of the legal and binding effect of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	MKS INSTRUMENTS, INC.

 	 
	 	By:  	/s/ Leo Berlinghieri
 	 
	 	 	Title: Chief Executive Officer & President 	 
	 	 	2 Tech Drive, Suite 201

Andover, MA 01810

«First_Name» «Last_Name»

Participants Signature 	 

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Exhibit A

Participant: «First_Name» «Last_Name»

Grant Date:                     

Restricted Stock Units Granted: <<NumShares>>

Subject to the terms and conditions of this Agreement (including the Forfeiture provisions
described in Section 2 above), the RSUs shall vest in three (3) equal installments as follows: (a)
the first third will vest upon the the first anniversary of the Grant Date; (b) an additional one
third will vest on the second anniversary of the Grant Date, and (c) the final one third will vest
on the third anniversary of the Grant Date. The date upon which each such installment vests shall
be considered a “Vesting Date” for the portion of the RSUs vesting on that date.

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MKS INSTRUMENTS, INC.

Restricted Stock Unit Agreement

Granted Under the 2004 Stock Incentive Plan

     AGREEMENT made this X day of March 2011 (the “Grant Date”), between MKS Instruments, Inc., a
Massachusetts corporation (the “Company”), and «First_Name» «Last_Name» (the “Participant”).

     For valuable consideration, receipt of which is acknowledged, the parties hereto agree as
follows:

     1. General.

The Company has granted to the Participant restricted stock units (“RSUs”) with respect to the
number of shares set forth in Exhibit A hereto (the “Shares”) of common stock, no par value, of the
Company (“Common Stock”), subject to the terms and conditions set forth in this Agreement and in
the Company’s 2004 Stock Incentive Plan (the “Plan”). The RSUs represent a promise by the Company
to deliver Shares upon vesting.

     (a) Definitions. “Forfeiture” shall mean any forfeiture of RSUs pursuant to Section
2. “Vesting Date” is defined on Exhibit A hereto. “Determination Date” (if applicable) is defined
on Exhibit A hereto. For purposes of this Agreement, “employ” or “employment” with the Company
shall include employment with a parent or subsidiary of the Company as defined in Sections 424(e)
or (f) of the Internal Revenue Code.

     (b) Vesting Period. Subject to the terms and conditions of this Agreement (including
the Forfeiture provisions described in Section 2 below), the RSUs shall vest according to the terms
set forth in Exhibit A. As soon as practicable after each applicable Vesting Date, but in any
event, within the period ending on the later to occur of the date that is 2 1/2 months from the end
of (i) the Participant’s tax year that includes the Vesting Date or (ii) the Company’s tax year
that includes the Vesting Date, the Company shall instruct its transfer agent to deposit the Shares
subject to the RSUs into the Participant’s existing equity account at Fidelity Stock Plan Services,
LLC, or such other broker with which the Company has established a relationship (“Broker”), subject
to payment in accordance with Section 6 of all applicable withholding taxes.

     2. Forfeiture.

     (a) Cessation of Employment. In the event that the Participant ceases to be employed
by the Company for any reason or no reason (except for death, disability or retirement), with or
without cause, prior to a Vesting Date, all of the Participant’s unvested RSUs shall automatically
be forfeited as of such cessation. In the event that the Participant ceases to be employed by the
Company by reason of death, disability or retirement prior to a Vesting Date, then 100% of the

 

 

Participant’s RSUs shall become immediately and fully vested and shall no longer be subject to
the Forfeiture provisions under this Agreement.

For the purpose of this Section 2, “disability” shall mean disability as defined in Section
216(i)(1) of the U.S. Social Security Act.

Retirement” means a voluntary termination of employment by the Participant after he or she is at
least age sixty (60) and has a combination of years of age plus Years of Service with the Company
equal to seventy (70) or more. “Years of Service” means the total number of days of employment
since Participant’s original hire with the Company (or subsidiary of the Company, provided that
service with a subsidiary shall only be counted towards Years of Service during the time in which
such subsidiary is owned (directly or indirectly) by the Company) and provided that in the event
the employee left or was terminated and then rehired by the Company, the Company shall include
previous employment period in the calculation of the Years of Service provided that the absence
from the Company or subsidiary has been five (5) years or less and only if the total number of days
employed by the Company (or its subsidiary, as provided above) exceeds the total number of days
that the employee was not employed by the Company (or its subsidiary, as provided above).

     (b) Change in Control. Notwithstanding the foregoing, if, prior to any Vesting Date,
and within two years after the effectiveness of a Change in Control (as defined below), the
Participant is (i) terminated by the Company without Cause (as defined below) or (ii) terminates
his employment for Good Reason (as defined below), then, 100% of the Participant’s RSUs shall
become immediately and fully vested and shall no longer be subject to the Forfeiture provisions
under this Agreement. For purposes of this section “Change in Control” means the first to
occur of any of the following events: (I) any “person” (as that term is used in Section 13 and
14(d)(2) of the Securities Exchange Act of 1934 (“Exchange Act”)) becomes the beneficial owner (as
that term is used in Section 13(d) of the Exchange Act), directly or indirectly, of fifty percent
(50%) or more of the Company’s capital stock entitled to vote in the election of directors; (II)
the shareholders of the Company approve any consolidation or merger of the Company, other than a
consolidation or merger of the Company in which the holders of the common stock of the Company
immediately prior to the consolidation or merger hold more than fifty percent (50%) of the common
stock of the surviving corporation immediately after the consolidation or merger; or (III) the
shareholders of the Company approve the sale or transfer of all or substantially all of the assets
of the Company to parties that are not within a “controlled group of corporations” (as defined in
Code Section 1563) in which the Company is a member. For purposes of this Agreement,
“Cause” shall mean conviction for the commission of a felony, willful failure by the
Participant to perform his responsibilities to the Company, or willful misconduct by the
Participant. For purposes of this section, “Good Reason” shall mean termination of the
Participant’s employment by the Participant within 90 days following (I) a material diminution in
the Participant’s positions, duties and responsibilities from those described in the Participant’s
Employment Agreement, (II) a material reduction in the Participant’s base salary (other than a
reduction which is part of a general salary reduction program affecting senior executives of the
Company), (III) a material reduction in the aggregate value of the pension and welfare benefits
provided to the Participant from those in effect prior to the Change in Control (other than a
reduction which is proportionate to the reductions applicable to other senior executives pursuant
to a cost-saving plan that includes all senior executives), (IV) a material breach of any provision
of the Participant’s Employment Agreement by the Company or (V) the

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Company’s requiring the Participant to be based at a location that creates for the Participant
a one way commute in excess of 60 miles from his primary residence, except for required travel on
the Company’s business to an extent substantially consistent with the business travel obligations
of the Participant under the Participant’s Employment Agreement. Notwithstanding the foregoing, a
termination shall not be treated as a termination for Good Reason (I) if the Participant shall have
consented in writing to the occurrence of the event giving rise to the claim of termination for
Good Reason or (II) unless the Participant shall have delivered a written notice to the Company
within 30 days of his having actual knowledge of the occurrence of one of such events stating that
he intends to terminate his employment for Good Reason and specifying the factual basis for such
termination, and such event, if capable of being cured, shall not have been cured within 30 days of
the receipt of such notice.

     3. Restrictions on Transfer.

     The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of,
by operation of law or otherwise (collectively “transfer”) any RSUs, or any interest therein,
except that the Participant may transfer such RSUs (i) to or for the benefit of any spouse,
children, parents, uncles, aunts, siblings, grandchildren and any other relatives approved by the
Board of Directors (collectively, “Approved Relatives”) or to a trust established solely for the
benefit of the Participant and/or Approved Relatives, provided that such RSUs shall remain
subject to this Agreement (including without limitation the terms of Forfeiture and the
restrictions on transfer set forth in this Section 3) and such permitted transferee shall, as a
condition to such transfer, deliver to the Company a written instrument confirming that such
transferee shall be bound by all of the terms and conditions of this Agreement.

     4. Provisions of the Plan.

          This Agreement is subject to the provisions of the Plan, a copy of which is furnished to the
Participant with this Agreement.

     5. No Compensation Deferral. Neither the Plan nor this Agreement is intended to
provide for an elective deferral of compensation that would be subject to Section 409A (“Section
409A”) of the U.S. Internal Revenue Code of 1986, as amended. The Company reserves the right, to
the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend
or modify the Plan and/or this Agreement to ensure that no awards (including without limitation,
the RSUs) become subject to the requirements of Section 409A.

     6. Withholding Taxes.

     (a) The Company’s obligation to deliver Shares to the Participant upon the vesting of RSUs
shall be subject to the satisfaction of all income tax (including federal, state and local taxes),
social insurance, payroll tax, payment on account or other tax related withholding requirements
(“Withholding Taxes”). In order to satisfy all Withholding Taxes due upon vesting of the
Participant’s RSUs, the Participant agrees to the following:

     (b) As a condition to receiving any Shares upon vesting of the RSUs, on the date of this
Agreement, the Participant hereby irrevocably instructs the Company to take the actions described

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in this subsection 6(b). On each Vesting Date, the Participant hereby elects to satisfy all
Withholding Taxes obligation then due through the retention by the Company of Shares. Accordingly,
the Participant hereby instructs the Company, with no further action by the Participant, on each
Vesting Date to deduct and retain from the number of Shares to which the Participant is entitled
from the RSUs then scheduled to vest such number of Shares as is equal to the value of the
Withholding Taxes. The Participant understands that the fair market value of the surrendered
Shares will be based on the closing price of the Company’s Common Stock on the trading day
preceding the Vesting Date.

     (c) Participant has reviewed with the Participant’s own tax advisors the federal, state, local
and foreign tax consequences of this grant and the transactions contemplated by this Agreement.
The Participant is relying solely on such advisors and not on any statements or representations of
the Company or any of its agents. The Participant understands that the Participant (and not the
Company) shall be responsible for the Participant’s own tax liability that may arise as a result of
this grant or the transactions contemplated by this Agreement.

     (d) The Participant represents to the Company that, as of the date hereof, he/she is not aware
of any material nonpublic information about the Company or the Common Stock. The Participant and
the Company have structured this Agreement to constitute a “binding contract” relating to the
retention by the Company of Common Stock pursuant to this Section 6, consistent with the
affirmative defense to liability under Section 10(b) of the Securities Exchange Act of 1934 under
Rule 10b5-1(c) promulgated under such Act.

     7. Nature of the Grant. In signing this Agreement, the Participant acknowledges that:

(a) the Plan is established voluntarily by the Company, it is discretionary in nature and
may be modified, amended, suspended or terminated by the Company at any time, unless
otherwise provided in the Plan and this Agreement;

(b) the grant of RSUs is voluntary and occasional and does not create any contractual or
other right to receive future awards of RSUs, or benefits in lieu of RSUs even if RSUs have
been awarded repeatedly in the past;

(c) all decisions with respect to future grants of RSUs, if any, will be at the sole
discretion of the Company;

(d) the Participant’s participation in the Plan is voluntary;

(e) RSUs are an extraordinary item that do not constitute compensation of any kind for
services of any kind rendered to the Company or to the Participant’s employer, and RSUs are
outside the scope of the Participant’s employment contract, if any;

(f) RSUs are not part of normal or expected compensation or salary for any purpose,
including, but not limited to, calculation of any severance, resignation, termination,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement
benefits or similar payments and in no event should be considered as compensation for, or
relating in any way to, past services for the Company or the Participant’s employer;

4

 

(g) the future value of the underlying Shares is unknown and cannot be predicted with
certainty;

(h) if the Participant receives Shares upon vesting, the value of such Shares acquired on
vesting of RSUs may increase or decrease in value;

(i) in consideration of the grant of RSUs, no claim or entitlement to compensation or
damages arises from termination of the RSUs or diminution in value of the RSUs or Shares
received upon vesting of RSUs resulting from termination of the Participant’s employment by
the Company or the Participant’s employer (for any reason whatsoever and whether or not in
breach of local labor laws) and the Participant irrevocably releases the Company and his or
her employer from any such claim that may arise; if, notwithstanding the foregoing, any such
claim is found by a court of competent jurisdiction to have arisen, then, by signing this
Agreement, the Participant shall be deemed irrevocably to have waived his or her entitlement
to pursue such claim; and

(j) further, if the Participant ceases to be a employee (whether or not in breach of local
labor laws), the Participant’s right to receive RSUs and vest under the Plan, if any, will
terminate effective as of the date that the Participant is no longer actively employed by
the Company and will not be extended by any notice period mandated under local law (e.g.,
active employment would not include a period of “garden leave” or similar period pursuant to
local law); the Committee shall have the exclusive discretion to determine when the
Participant is no longer actively employed for purposes of the Plan.

     8. Data Privacy Notice and Consent. The Participant hereby explicitly and
unambiguously consents to the collection, use and transfer, in electronic or other form, of his or
her personal data as described in this paragraph, by and among, as applicable, the Participant’s
employer and the Company and its subsidiaries and affiliates for, among other purposes,
implementing, administering and managing the Participant’s participation in the Plan. The
Participant understands that the Company and its subsidiaries hold certain personal information
about the Participant, including the Participant’s name, home address and telephone number, date of
birth, social security number or identification number, salary, nationality, job title, any Shares
or directorships held in the Company, details of all options or any other entitlement to Shares
awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor, for the
purpose of managing and administering the Plan (“Data”). The Participant further understands that
the Company and/or its subsidiaries will transfer Data amongst themselves as necessary for
employment purposes, including implementation, administration and management of the Participant’s
participation in the Plan, and that the Company and/or any of its subsidiaries may each further
transfer Data to Broker or such other stock plan service provider or other third parties assisting
the Company with processing of Data. The Participant understands that these recipients may be
located in the United States, and that the recipient’s country may have different data privacy laws
and protections than in the Participant’s country. The Participant authorizes them to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the purposes described
in this section, including any requisite transfer to Broker or such other stock plan service
provider or other third party as may be required for the administration of the Plan and/or the
subsequent holding

5

 

of Shares of stock on the Participant’s behalf. The Participant understands that he or she
may, at any time, request access to the Data, request any necessary amendments to it or refuse or
withdraw the consents herein, in any case without cost, by contacting in writing his or her local
human resources representative. The Participant understands, however, that withdrawal of consent
may affect the Participant’s ability participate in or realize benefits from the Plan. For more
information on the consequences of refusal to consent or withdrawal of consent, the Participant
understands that he or she may contact his or her local human resources representative.

     9. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the RSUs pursuant to Section 1 and Exhibit A hereof is earned only in accordance with the terms
of such sections. The Participant further acknowledges and agrees that the transactions
contemplated hereunder and the vesting schedule set forth herein do not constitute an express or
implied promise of continued engagement as an employee for the vesting period, for any period, or
at all.

          (b) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (c) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

          (d) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 3 of this Agreement.

          (e) Notice. All notices required or permitted hereunder shall be in writing and
deemed effectively given upon personal delivery or five days after deposit in the United States
Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto
at the address shown beneath his or its respective signature to this Agreement, or at such other
address or addresses as either party shall designate to the other in accordance with this Section
9(e).

          (f) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          (g) Language. If the Participant has received this Agreement or any other document
related to the Plan translated into a language other than English and if the translated version is
different than the English version, the English version will control.

          (h) Electronic Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to participation in the Plan, RSUs granted under the Plan or future

6

 

RSUs that may be granted under the Plan by electronic means or to request the Participant’s
consent to participate in the Plan by electronic means. The Participant hereby consents to receive
such documents by electronic delivery and, if requested, to agree to participate in the Plan
through an on-line or electronic system established and maintained by the Company or another third
party designated by the Company.

          (i) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersedes all prior agreements and understandings, relating to the
subject matter of this Agreement.

          (j) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (k) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the Commonwealth of Massachusetts without regard to any
applicable conflicts of laws.

          (l) The Participant’s Acknowledgments. The Participant acknowledges that he or she:
(i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of the Participant’s own choice or has voluntarily
declined to seek such counsel; and (iii) understands the terms and consequences of this Agreement;
and (iv) is fully aware of the legal and binding effect of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	MKS INSTRUMENTS, INC.

 	 
	 	By:  	/s/ Leo Berlinghieri
 	 
	 	 	Title: Chief Executive Officer & President 	 
	 	 	2 Technology Drive

Andover, MA 01810

«First_Name» «Last_Name»

Participants Signature 	 

7

 

	 	 	 	 	 

Exhibit A

8exv10w23

Exhibit 10.23

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT dated January 5, 2006,(“Employment Agreement”), by and between MKS
Instruments, Inc., a Massachusetts Corporation (“the Corporation”), and of, Seth H. Bagshaw , (the
“Employee”).

WHEREAS, the Corporation and the Employee desire to provide for the employment of the Employee by
the Corporation:

NOW, THEREFORE, in consideration of the premises and the mutual premises contained herein, the
Corporation and the Employee hereby agree as follows:

     (1) Term of Employment

     (a) The Corporation hereby employs the Employee, and the Employee hereby accepts
employment with the Corporation, for a period commencing as of (start date) and continuing
thereafter until terminated as provided in this Section (1) or Section (5).

     (b) The Corporation may terminate Employee’s employment at any time for any reason, or
no reason, by notifying Employee of such termination. The employment of the Employee under
this Employment Agreement shall terminate thirty (30) days after the date of such notice;
provided, however, that the employment of the Employee under this Employment Agreement is
subject to prior termination as hereinafter provided in Section (5)(b) and (c).
Notwithstanding the above, the Corporation shall be entitled, at its sole discretion, to
waive its obligation to continue active employment of the Employee during the 30 day notice
period. In the event the Corporation elects at any time to waive its obligation to continue
active employment of the Employee during the 30 day notice period, the Corporation shall
continue to pay the Employee his customary Base Salary (as defined in Section (4)) and will
reimburse Employee for the premiums (if any) he pays for continuation of life insurance
should he elect to exercise the conversion feature (if any) of the Corporation’s group life
policy then in effect and for the premiums (if any) for the continuation under the federal
COBRA program of such medical/dental insurance as Employee may then receive through the
balance of the 30 day notice period.

     (c) Employee may terminate employment by delivering notice of resignation no later than
thirty (30) days prior to the intended date of termination of employment (“Resignation
Date”); provided, however, that the Corporation may at any time and for any reason, or no
reason, accelerate the Resignation Date to any date prior thereto up to and including the
date Employee delivers such notice of resignation, which such acceleration shall not, in any
event, be deemed a termination by Corporation of Employee’s employment. Unless the
employment is terminated pursuant to Section (5), the Corporation shall, if it terminates
the employment prior to the Resignation Date, continue to pay Employee his customary Base
Salary (as defined in Section 4)) and will

 

 

reimburse Employee for the premiums (if any) he pays for continuation of life
insurance should he elect to exercise the conversion feature (if any) of the Corporation’s
group life policy then in effect and for the premiums (if any) for continuation under the
federal COBRA program of such medical/dental insurance as Employee may then receive, through
the balance of the 30 day notice period.

     (2) Capacity: Employee is being paid to perform such duties and exercise such
powers, authorities and discretions in relation to the Corporation as are customary and incidental
to Employee’s position and such other services that are delegated or assigned to him by the CEO &
President of the Corporation or his designee, including any authorized manager or supervisor of the
Employee. It shall be a condition to Employee’s employment hereunder that Employee execute and
deliver to the Corporation that Confidential Information Agreement of MKS Instruments, Inc.
(“Confidential Information Agreement”) attached hereto as Attachment 1, and by execution of this
Employment Agreement, Employee (i) acknowledges receipt of the Confidential Information Agreement
and (ii) agrees to be bound by all of the terms of the Confidential Information Agreement.

     (3) Extent of Services: During the term of employment of the Employee under this
Employment Agreement, the Employee shall devote his full time to, and use his best efforts in the
furtherance of, the business of the Corporation and shall not perform similar duties in any other
capacity for any other person or engage in any other business activity which interferes in any way
with the Employee performance of his duties to the Corporation, whether or not such business
activity is pursued for gain or any other pecuniary advantage, without the prior written consent of
the Corporation. Employee agrees and understands that Employee owes the Corporation fidelity and
loyalty during his term of employment with the Corporation.

     (4) Compensation: In consideration of the services to be rendered by the Employee
under this Employment Agreement, the Corporation agrees to pay, and the Employee agrees to accept,
the following compensation:

     (a) Base Salary: A base salary at the rate of two-hundred thousand dollars
($200,000) per year for the term of employment of the Employee under this Employment
Agreement. The base salary shall be payable in equal biweekly installments subject to usual
withholding requirements. This salary will be reviewed regularly according to the practices
of the Corporation and will be subject to any changes in pay policies implemented by the
Corporation from time to time. As an exempt employee, the Employee shall not be entitled to
receive any overtime pay from the Corporation.

     (b) MKS Instruments, Inc. Profit Sharing and 401-K Plan: The Employee shall
be eligible to become a participant under the profit sharing plan of the Corporation on
fulfilling the conditions set forth in the MKS Instruments, Inc. Profit Sharing and 401-K
Plan, subject to any changes thereto that may be implemented from time to time.

     (c) Vacation: The Employee shall be entitled to an annual vacation leave of
15 days at full pay during each year of this Employment Agreement, subject to the Employee
arranging such vacation so as not to affect adversely the ability of the

2 

 

     Corporation to transact its business. Such vacation leave shall accrue and be administered
according to the policies and practices of the Corporation.

     (d) Life Insurance: The Corporation shall provide and pay such premiums for
such term life insurance for the Employee during the term of employment of the Employee
under this Employment Agreement as may be applicable to the Employee, subject to any changes
in the term life insurance policies that may be implemented by the Corporation from time to
time.

     (e) Medical/Dental Insurance: The Corporation shall provide and pay such
premiums for such group medical/dental insurance for the Employee during the term of
employment of the Employee under this Employment Agreement as may be applicable to the
Employee, subject to any changes in the medical/dental insurance policies that may be
implemented by the Corporation from time to time.

     (f) Other Benefits: The Corporation shall provide other benefits for the
employee under the Plans of the Corporation applicable to the Employee during the term of
employment of the Employee under this Employment Agreement.

     (5) Termination: The employment of the Employee under this Employment
Agreement shall terminate:

     (a) On the expiration of the period of employment as provided in Section (1).

     (b) Upon the death of the Employee, or the disability of the Employee as defined in
Section (6) (e) below.

     (c) Upon Corporation’s delivery of notice of the existence of Cause. “Cause” shall
mean: (i) Employee’s refusal to follow directions from the CEO & President of the
Corporation or his designee that are not inconsistent with Employee’s position, (ii)
Employee’s failure to perform his duties other than as a result of Disability or death,
(iii) Employee’s disregard of or failure to comply with the Corporation’s directives,
policies or procedures other than as a result of Disability or death, (iv) Employee’s
engaging in negligent, reckless or intentional conduct injurious to the Corporation, any of
its subsidiaries or affiliates or any of its directors or officers, (v) Employee’s
conviction of a felony or a serious misdemeanor or plea of other than “not guilty” to any
felony or serious misdemeanor charge, (vi) Employee’s engaging in conduct that is injurious
to the Corporation’s name or reputation or (vii) Employee’s breach of this Employment
Agreement or the Confidential Information Agreement.

     (6) Payment Upon Termination:

     (a) Upon the termination of employment as provided in Section (1), the Employee shall
not be entitled to any further compensation or benefits, and the
Corporation shall have no obligation to provide the Employee any further compensation or benefits, except as provided in this Employment Agreement.

3 

 

     (b) If the employment of the Employee is terminated by death, the Corporation shall
pay to the estate of the Employee the compensation which would otherwise be payable to the
Employee at the end of the month in which his death occurs and other unpaid amounts to which
Employee would have been at that time entitled as an Employee under any applicable
compensation or benefit plan or program.

     (c) In the event the employment of the Employee is terminated by the Corporation for
Cause pursuant to Section (5) (c) hereof, the Corporation shall have no obligation to pay
the Employee any amounts, except for Base Salary through the last full day of actual work
for the Corporation.

     (d) In the event the Employee voluntarily resigns, the Corporation shall have no
obligation to pay the Employee any amounts, except for Base Salary through the last full day
of actual work for the Corporation, or, if applicable, amounts payable in accordance with
Section (1.c), and other unpaid amounts to which Employee is at that time entitled under any
applicable compensation or benefit plan or program.

     (e) If Employee is incapacitated by a physical or mental condition, illness, or injury
that prevents Employee from being able to perform his duties under this Employment Agreement
in a satisfactory manner for substantially all of a twelve (12) consecutive week period (or
such longer period as may be required by law or that the CEO & President of the Corporation
or his designee may, in his discretion, determine) with any reasonable accommodation that
may be required by law, then Employee shall be deemed to be unable to perform his job (any
such physical or mental condition, illness, or injury, a “Disability”). In such event, the
Corporation may terminate Employee’s employment, in which case Employee shall receive (i)
any accrued but unpaid Base Salary and other unpaid amounts to which Employee is at that
time entitled under any applicable compensation or benefit plan or program and (ii) al
applicable disability benefits consistent with any applicable benefits program. The
Corporation shall have no further obligations to Employee. Nothing in this paragraph is
intended to or shall operate to excuse the Corporation from any legal obligations it may
have under applicable laws.

     (f) The Corporation shall deduct from the amounts payable to Employee pursuant to this
Agreement all required withholding amounts and deductions, including but not limited to
federal, state and local withholding amounts in accordance all applicable laws and
regulations and deductions authorized by Employee. Employee shall be solely responsible for
and shall pay all taxes associated with the amounts payable under this Agreement

     (7) Noncompetition Agreement: Employee shall not, without the written consent of the
Corporation, during the term of employment with the Corporation and for the period of one year
thereafter (the “Non-Compete Period”), engage in or otherwise carry on, directly or indirectly
anywhere in the world (either as principal, agent, employee, employer, investor, shareholder
(except for holdings of no great than 1% of the total outstanding shares in a publicly-traded

4 

 

company), consultant, partner, member, financier or in any other individual or representative
capacity of any kind whatsoever), any business or activity competitive with the Corporation but
solely to the extent such business or activity is related to, similar to or competitive with the
activities of the business unit(s), division(s), laborator(y)(ies), facilit(y)(ies) and other
operational unit(s) in or for which Employee performed work for the Corporation or about which
Employee acquired Proprietary Information (as defined in the Confidential Information Agreement).
The Non-Compete Period shall be extended for any period during which Employee is in breach of this
Agreement or the Confidential Information Agreement.

     (8) Notice: Any and all notices under this Employment Agreement shall be in writing
and, if to the Corporation, shall be duly given if sent to the Corporation by registered or
certified mail, postage prepaid, return receipt requested, at the address of the Corporation set
forth under its name below or at such other address as the Corporation may hereafter designate to
the Employee in writing for the purpose, and if to the Employee, shall be duly given if delivered
to the Employee by hand or if sent to the Employee by registered or certified mail, postage
prepaid, return receipt requested, at the address of the Employee set forth under his name below or
at such other address as the Employee may hereafter designate to the Corporation in writing for the
purpose.

     (9) Assignment: The rights and obligations of the Corporation under this Employment
Agreement shall inure to the benefit of, and shall be binding upon, the successors and assigns of
the Corporation. The rights and obligations of the Employee under this Employment Agreement shall
inure to the benefit of, and shall be binding upon, the heirs, executors and legal representatives
of the Employee.

     (10) Entire Agreement and Severability:

     (a) This Employment Agreement and the Confidential Information Agreement supersede any
and all other agreements, either oral or in writing, between the parties hereto with respect
to the employment of the Employee by the Corporation and contains all of the covenants and
agreements between the parties with respect to such employment. Each party to this
Employment Agreement acknowledges that no representations, inducements, promises or
agreement, oral or otherwise, have been made by any party, or any one acting on behalf of
any party, which are not embodied herein, and that no other agreement, statement or promise
not contained in this Employment Agreement shall be valid and binding. Any modification of
this Employment Agreement will be effective only if it is in writing signed by both parties
to this Employment Agreement.

     (b) If any provision in this Employment Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions shall
nevertheless continue in full force and effect without being impaired or invalidated in any
way.

     (c) All pronouns used herein shall include the masculine, feminine, and neuter gender
as the context requires.

5 

 

     (11) Miscellaneous: This Agreement and the rights and obligations of the parties
hereunder shall be governed by, and construed in accordance with, the laws of the Commonwealth of
Massachusetts, excluding (but only to the extent permitted by law) its conflict of laws and choice
of law rules, and jurisdiction over any action to enforce this Agreement, or any dispute arising
from or relating to this Agreement shall subsist solely in the state and/or federal courts located
within the Commonwealth of Massachusetts. The parties hereto further agree that service of any
process, summons, notice or document by U.S. certified mail or overnight delivery by a generally
recognized commercial courier service to Employee’s last known address (or any mode of service
recognized to be effective by applicable law) will be effective service of process for any action,
suit or proceeding brought against Employee in any such court. This Agreement may be executed in
any number of counterparts, each of which, when executed by both parties to this Agreement shall be
deemed to be an original, and all of which counterparts together shall constitute one and the same
instrument. The failure of either party hereto to enforce any right under this Agreement shall not
be construed to be a waiver of that right, or of damages caused thereby, or of any other rights
under this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed, in the Commonwealth of Massachusetts, this
Employment Agreement as a sealed instrument, all as of the day, month and year first written above.

	 	 	 	 	 

	MKS INSTRUMENTS, INC.
	 
	 	 	 	 
	By:

	 	/s/ Leo Berlinghieri
 

	 	 
	 

	 	CEO & President	 	 
	 
	 	 	 	 
	 

	 	90 Industrial Way	 	 
	 

	 	Wilmington, MA 01887	 	 
	 
	 	 	 	 
	 

	 	/s/ Seth H. Bagshaw
	 	Legal Signature
	 

	 	 	 	 
	 

	 	Seth Bagshaw	 	 
	 

	 	5 Bayns Hill Road	 	 
	 

	 	Boxford, MA 01921	 	 

6

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