Document:

Executive Severance Plan

 Exhibit 10.48 
 KLA-TENCOR CORPORATION 
 EXECUTIVE SEVERANCE PLAN 
 AS AMENDED AND RESTATED NOVEMBER 13, 2008 
 1. Introduction 
 The KLA-Tencor Corporation Executive Severance Plan (the “Plan”) is designed to (i) assure
the Company that it will have the continued dedication and availability of, and objective advice and counsel from, the Participants and (ii) provide Participants with the compensation and benefits described in the Plan in the event of their
termination of employment with the Company under the circumstances described in the Plan. This document constitutes the written instrument under which the Plan is maintained and supersedes any prior plan or practice of the Company that provides
severance benefits to Participants. 
 The primary purposes of this November 13, 2008 amendment and restatement are to clarify certain
benefits payable under the Plan and to bring the provisions of the Plan into documentary compliance with the applicable requirements of Section 409A of the Internal Revenue Code and the Treasury Regulations issued thereunder and thereby
continue to facilitate the administration of the Plan in compliance with those requirements. 
 Participants shall be those Employees
selected at the sole discretion of the Committee. 
 2. Definitions 
 For purposes of this Plan, the following terms shall have the meanings set forth below: 
 (a) “Acceleration Ratio” shall mean the ratio of (i) the number of months (with any fractional month rounded up to
the next whole month) that elapse between the grant date of an outstanding equity award and the date of the Participant’s Separation from Service hereunder to (ii) the number of months (with any fractional month rounded up to the next
whole month) in the total vesting period in effect for such award.  
 (b) “Amended Plan Effective
Date” shall mean November 13, 2008. 
 (c) “Average Annual Incentive” shall mean the average
annual incentive cash compensation earned in the aggregate by the Participant under the Company’s various incentive bonus plans for the last three completed fiscal years of the Company, including any portion earned but deferred; provided,
however that if a Participant has not been in Employee status for the last three full fiscal years, the Average Annual Incentive shall mean the Participant’s aggregate target bonus for the fiscal year in which he or she ceases Employee
status. 
 (d) “Base Salary” shall mean the Participant’s annual rate of base salary in effect as of the
date of his or her cessation of Employee status, but prior to any reduction to such Base Salary that would qualify as a Good Reason termination event. 

 (e) “Board” means the Board of Directors of the Company. 
 (f) “Cause” shall mean (A) outside the Change of Control Period, the occurrence of any of the following events:
(i) the Participant’s conviction of, or plea of nolo contendre to, a felony; (ii) the Participant’s gross misconduct; (iii) any material act of personal dishonesty taken by the Participant in connection with his or her
responsibilities as an employee of the Company, or (iv) the Participant’s willful and continued failure to perform the duties and responsibilities of his or her position after there has been delivered to the Participant a written demand
for performance from the Board which describes the basis for the Board’s belief that the Participant has not substantially performed his or her duties and provides the Participant with thirty (30) days to take corrective action, and
(B) within the Change of Control Period, the occurrence of any of the following events: (i) the Participant’s conviction of, or plea of nolo contendre to, a felony that the Board reasonably believes has had or will have a material
detrimental effect on the Company’s reputation or business; (ii) the Participant’s willful gross misconduct with regard to the Company that is materially injurious to the Company; (iii) any act of personal dishonesty taken by the
Participant in connection with his or her responsibilities as an employee of the Company with the intention or reasonable expectation that such action may result in substantial personal enrichment of the Participant or (iv) the
Participant’s willful and continued failure to perform the duties and responsibilities of his or her position after there has been delivered to the Participant a written demand for performance from the Board which describes the basis for the
Board’s belief that the Participant has not substantially performed his or her duties and provides the Participant with thirty (30) days to take corrective action. 
 (g) “Change of Control” shall mean the occurrence of any of the following events: (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities; (ii) the sale or disposition by the Company of all or substantially all of the Company’s assets; (iii) the
consummation of any merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation, or (iv) a change in the composition of the Board, as a result of which fewer than a majority of the Board members are Incumbent Directors. “Incumbent Directors” shall mean Board members who either
(A) are members of the Board on the Amended Plan Effective Date or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those Board members whose election or nomination was not in
connection with any transactions described in subsections (i), (ii) or (iii) or in connection with an actual or threatened proxy contest relating to the election of directors of the Company. 
 (h) “Change of Control Period” shall mean the two (2) year period commencing upon the occurrence of a Change of
Control. 
 (i) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  

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 (j) “Committee” shall mean the Board or such committee appointed by the
Board to act as the committee for purposes of administering the Plan. 
 (k) “Company” shall mean KLA-Tencor
Corporation, a Delaware corporation, and any successor entity. 
 (l) “Employee” shall mean an individual who
is a full-time regular employee of one or more members of the Employer Group, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. An individual shall be deemed to
continue in Employee status for so long as he or she continues as a full-time regular employee of at least one member of the Employer Group. 
 (m) “Employer Group” means (i) the Company and (ii) each of the other members of the controlled group that includes the Company, as determined in accordance with Sections 414(b) and
(c) of the Code, except that in applying Sections 1563(1), (2) and (3) of the Code for purposes of determining the controlled group of corporations under Section 414(b), the phrase “at least 50 percent” shall be used
instead of “at least 80 percent” each place the latter phrase appears in such sections and in applying Section 1.414(c)-2 of the Treasury Regulations for purposes of determining trades or businesses that are under common control for
purposes of Section 414(c), the phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place the latter phrase appears in Section 1.414(c)-2 of the Treasury Regulations. 
 (n) “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code. 
 (o) “Good Reason” shall mean (i) a material reduction of the Participant’s duties, authority or
responsibilities; (ii) a material change in the Participant’s reporting requirements such that the Participant is required to report to a person whose duties, responsibilities and authority are materially less than those of the person to
whom the Participant was reporting immediately prior to such change, (iii) a material reduction in the Participant’s Base Salary, other than a reduction that applies to other executives generally; (iv) a material reduction in the
aggregate level of the Participant’s overall compensation, other than a reduction that applies to other executives generally; or (iv) a material relocation of the Participant’s office, with a relocation of more than fifty
(50) miles from its then present location to be deemed material, unless the relocated office is closer to the Participant’s then principal residence; provided however, that in no event shall the Participant’s Separation from
Service be deemed to be for Good Reason unless (x) the Participant provides the Company with written notice specifying in detail the event or transaction constituting grounds for a Good Reason resignation and delivered to the Company within
ninety (90) days after the occurrence of that event or transaction, (y) the Company fails to remedy the purported Good Reason event or transaction within a reasonable cure period of at least thirty (30) days following receipt of such
notice and (z) the Participant resigns for such Good Reason within sixty (60) days after the Company’s failure to take such timely curative action, but in no event more than one hundred eighty (180) days after the occurrence of
the event or transaction identified in the clause (x) notice to the Company as the grounds for the Good Reason resignation. 
 (p) “Original Effective Date” shall mean January 1, 2006. 
  

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 (q) “Participant” shall mean an Employee who meets the eligibility
requirements of Section 3. 
 (r) “Plan” shall mean this KLA-Tencor Corporation Executive Severance
Plan. 
 (s) “Plan Year” shall mean the Company’s fiscal year. 
 (t) “Prorated Annual Incentive” shall mean the aggregate incentive bonus paid to the Participant under the Company’s
various incentive bonus plans for the Company’s most recently completed fiscal year, including any portion earned but deferred, multiplied by a fraction, the numerator of which is the number of days in the Company’s then current fiscal
year through the date of the Participant’s Separation from Service, and the denominator of which is equal to 365. 
 (u)
“Separation from Service” means the Participant’s cessation of Employee status by reason of his or her death, retirement or termination of employment. The Participant shall be deemed to have terminated employment for
such purpose at such time as the level of his or her bona fide services to be performed as an Employee (or non-employee consultant) permanently decreases to a level that is not more than twenty percent (20%) of the average level of services he
or she rendered as an Employee during the immediately preceding thirty-six (36) months (or such shorter period for which he or she may have rendered such service). Any such determination as to Separation from Service, however, shall be made in
accordance with the applicable standards of the Treasury Regulations issued under Code Section 409A. In addition to the foregoing, a Separation from Service will not be deemed to have occurred while an Employee is on military leave, sick leave
or other bona fide leave of absence if the period of such leave does not exceed six (6) months or any longer period for which such Employee’s right to reemployment with one or more members of the Employer Group is provided either by
statute or contract; provided, however, that in the event of an Employee’s leave of absence due to any medically determinable physical or mental impairment that can be expected to result in death or to last for a continuous period
of not less than six (6) months and that causes such individual to be unable to perform his or her duties as an Employee, no Separation from Service shall be deemed to occur during the first twenty-nine (29) months of such leave. If the
period of leave exceeds six (6) months (or twenty-nine (29) months in the event of disability as indicated above) and the Employee’s right to reemployment is not provided either by statute or contract, then such Employee will be
deemed to have a Separation from Service on the first day immediately following the expiration of such six (6)-month or twenty-nine (29)-month period. 
 (v) “Severance Multiple” shall mean the Participant’s Severance Period, expressed in years or fractions thereof (e.g., a Severance Period of two years results in a Severance Multiple of two). The
Severance Multiple may be different for periods outside of the Change of Control Period and within the Change of Control Period. 
 (w) “Severance Payment” shall mean the payment of severance compensation as provided in Section 4 hereof. 
 (x) “Severance Period” shall mean the number of years (which may include fractional years) established by the Committee for an individual Participant. The Severance Period may be different for periods
outside of the Change of Control Period and within the Change of Control Period. 
  

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 (y) Specified Employee” means any individual who is, at any time during the
twelve (12)-month period ending with the identification date specified below, a “key employee” (within the meaning of that term under Code Section 416(i)), as determined by the Committee in accordance with the applicable standards of
Code Section 409A and the Treasury Regulations thereunder and applied on a consistent basis for all non-qualified deferred compensation plans of the Employer Group subject to Code Section 409A. The Specified Employees shall be identified
by the Committee on December 31 each year and shall have that status for the twelve (12)-month period beginning on the April 1 subsequent to such determination by the Committee. 
 3. Eligibility 
 (a)
Required Release. In order to qualify for severance benefits under Section 4(b), 4(c) or 4(d) of the Plan, the Participant must, within twenty-one (21) days (or forty-five (45) days to the extent any such longer period is
required under applicable law) after the date of his or her Separation from Service, sign and deliver to the Company a general waiver and release (the “Required Release”) in the form provided by (and in favor of) the Company, and such
Required Release must become effective under applicable law following the expiration of any applicable revocation period under federal or state law. 
 (b) Participation in Plan. The Committee shall from time to time designate the Employees who are to participate in the Plan. The Committee may, with respect to one or more such designated Participants, limit
their participation to certain Separations from Service during or related to the Change of Control Period as set forth in Sections 4(c) and 4(d) hereof and not allow them to participate with respect to certain Separations from Service outside of and
unrelated to the Change of Control Period, as set forth in Section 4(b) hereof. A Participant shall cease to be a Participant upon cessation of Employee status (unless such Participant is then entitled to a Severance Payment under the Plan) or
upon the expiration date of the Plan. However, a Participant who becomes entitled to a Severance Payment shall remain a Participant in the Plan until the full amount of his or her benefits under the Plan have been provided to such Participant,
notwithstanding the prior expiration of the Plan. Upon receipt of all the Severance Payments, the Participant releases the Company from any and all further obligations under the Plan. 
 4. Severance Benefits 
 (a) Termination of Employment. Except as otherwise provided in this Section 4(a), upon the termination of the Participant’s Employee status for any reason, the Participant shall be immediately entitled to any
(i) unpaid Base Salary accrued through the effective date of such termination; (ii) unreimbursed business expenses required to be reimbursed to the Participant in accordance with the Company’s business expense reimbursement policy,
and (iii) pay for accrued but unused vacation that the Company is legally obligated to pay the Participant. Any amounts deferred by such Participant under one or more of the Company’s non-qualified deferred compensation programs subject to
Section 409A of the Code which remain unpaid on the termination date shall be paid at such time and in such manner as set forth in each applicable plan or agreement governing the payment of those deferred amounts, subject, however, to the
deferred payment provisions of Section 6 below. Amounts deferred under any other deferred compensation plans or programs shall be paid to the Participant in accordance with the terms and 

  

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provisions of each such applicable plan or program. In addition, should the Participant incur a Separation from Service because his or her service as an
Employee is terminated or reduced by the Company other than for Cause or by the Participant for Good Reason, then the Participant shall be entitled to the amounts and benefits specified below. 
 (b) Termination by the Company Without Cause or the Participant Terminates for Good Reason Outside of the Change of Control Period.
If the Participant incurs a Separation from Service because his or her service as an Employee is reduced or terminated by the Company without Cause or by the Participant for Good Reason, and such Separation from Service does not occur during the
Change of Control Period, then, subject to Sections 3(a) and 5, the Participant shall receive: (i) an amount equal to the Participant’s Severance Multiple multiplied by the Participant’s Base Salary, payable in successive equal
installments over the Severance Period in accordance with the Company’s normal payroll policies for salaried employees, with the first such payment to begin on the first payday within the sixty (60)-day period following the date of such
Separation from Service on which the Participant’s Required Release is effective, but in no event shall such initial payment be made later than the last business day of such sixty (60)-day period on which the Release is so effective;
(ii) the Participant’s Prorated Annual Incentive, with such payment to be made in a lump sum at the same time as the first installment payment under clause (i) above; (iii) partial vesting acceleration with respect to the
Participant’s then outstanding unvested equity awards, with the amount of such accelerated vesting being equal to, for each such award, (A) the product of the number of shares originally granted under such award (as such number may be
modified based upon the satisfaction of (or failure to satisfy) any performance criteria or other criteria applicable to such award) multiplied by the Acceleration Ratio, less (B) the number of shares under such award that have actually vested
in accordance with the terms of such award (without giving effect to the acceleration terms hereunder) as of the date of the Participant’s Separation from Service hereunder; and (iv) with respect to any of the Participant’s then
outstanding options or stock appreciation rights granted on or after the Original Effective Date (“New Options/SARs”), an extended post-termination exercise period for each such New Option/SAR equal to the earlier of (x) twelve
(12) months from the date of the Participant’s cessation of Employee status or (y) the expiration date of the maximum term (not to exceed ten years) of such New Option/SAR. 
 (c) Termination Without Cause or Resignation for Good Reason During the Change of Control Period. If the Participant incurs a
Separation from Service because his or her service as an Employee is reduced or terminated by the Company without Cause or by the Participant for Good Reason, and such Separation from Service occurs within the Change of Control Period, then, subject
to Sections 3(a) and 5, Participant shall receive: (i) a cash amount equal to the Participant’s Severance Multiple multiplied by the sum of the Participant’s Base Salary and Average Annual Incentive, payable in successive equal
installments over the Severance Period in accordance with the Company’s normal payroll policies for salaried employees, with the first such payment to begin on the first payday within the sixty (60)-day period following the date of his or her
Separation from Service on which the Participant’s Required Release is effective, but in no event shall such initial payment be made later than the last business day of such sixty (60)-day period on which the Release is so effective;
(ii) the Participant’s Prorated Annual Incentive, with such payment to be made in a lump sum at the same time as the first installment payment under clause (i) above; (iii) 100% accelerated vesting with respect to each of the
Participant’s then outstanding unvested equity awards; (iv) an extended post-termination exercise period 

  

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for each New Option/SAR equal to the earlier of (x) twelve (12) months from the date of the Participant’s cessation of Employee status or
(y) the expiration date of the maximum term (not to exceed ten years) of such New Option/SAR; and (v) a monthly payment of $2,000 for the duration of the Severance Period, with the payment for each such month to be made concurrently with
the first payment made under clause (i) above for that month. 
 (d) Certain Terminations Prior to a Change of
Control. If at any time during the period beginning with the execution of a definitive agreement to effect a Change of Control and ending with the earlier (x) the termination of that agreement without a Change of Control or (y) the
effective date of the Change of Control contemplated by that agreement, the Participant incurs a Separation from Service because his or her service as an Employee is reduced or terminated by the Company without Cause or by the Participant for Good
Reason, then each of his or her outstanding equity awards, whether vested or unvested, shall, notwithstanding anything to the contrary in the documents evidencing those awards, remain outstanding for a period of six (6) months following such
Separation from Service (or, if earlier, until the expiration date of the maximum term (not to exceed ten years) of such award). Should the Change of Control contemplated by that agreement become effective during that six (6)-month period, then,
subject to Sections 3(a) and 5, Participant shall thereupon become entitled to the following benefits: (i) the unvested portion of each of his or her outstanding equity awards shall vest immediately; (ii) each of his or her New
Options/SARs shall have an extended post-termination exercise period equal to the earlier of (x) twelve (12) months from the date of his or her cessation of Employee status or (y) the expiration date of the maximum term (not to exceed
ten years) of such New Option/SAR; (iii) a cash amount equal to the Participant’s Severance Multiple multiplied by the sum of the Participant’s Base Salary and Average Annual Incentive, payable in successive equal installments over
the Severance Period in accordance with the Company’s normal payroll policies for salaried employees, with the first such payment to begin on the first payday within the sixty (60)-day period following the date of his or her Separation from
Service on which the Participant’s Required Release is effective, but in no event shall such initial payment be made later than the last business day of such sixty (60)-day period on which the Release is so effective; (iv) the
Participant’s Prorated Annual Incentive, with such payment to be made in a lump sum at the same time as the first installment payment under clause (iii) above and (v) a monthly payment of $2,000 for the duration of the Severance
Period, with the payment for each such month to be made concurrently with the first payment made under clause (iii) above for that month. The severance benefits payable under this Section 4(d) shall be in lieu of any severance benefits to
which the Participant might otherwise be entitled under Section 4(c); accordingly, there shall be no duplication of benefits under Sections 4(c) and 4(d). 
 (e) Code Section 409A Status. The Participant’s right to receive compensation continuation payments pursuant to clause
(i) of Section 4(b), clauses (i) and (v) of Section 4(c) or clauses (iii) and (v) of Section 4(d)) shall in each instance be treated, for purposes of Code Section 409A, as a right to a series of separate
payments. To the extent the Participant vests in any outstanding restricted stock unit award or other similar full value equity award in accordance with the provisions of Section 4(b), 4(c) or 4 (d), the underlying shares of the Company’s
common stock shall be issued on the date that award vests upon the satisfaction of the applicable requirements for such vesting (including the Release requirements under Section 3(a)) or as soon as administratively practicable thereafter, but
in no event later than the fifteenth day of the third calendar month following such vesting date. The Participant’s right to receive shares of the Company’s common stock in one or more installments under such equity awards shall, for
purposes of Code Section 409A, be treated as a right to receive a series of separate payments. 
  

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 (f) Golden Parachute Excise Taxes. 
 (i) Parachute Payments of Less than 3x Base Amount Plus Fifty Thousand Dollars. If the benefits provided to the Participant under
this Plan or otherwise payable to him or her (a) constitute “parachute payments” within the meaning of Section 280G of the Code, (b) would be subject to the Excise Tax, and (c) the aggregate present value of those
parachute payments, as determined in accordance with Section 280G of the Code and the Treasury Regulations thereunder, is less than the dollar amount obtained by first multiplying the Participant’s “base amount” (within the
meaning of Code Section 280G(b)(3)) by three (3) and then adding to such product fifty thousand dollars, then such benefits shall be reduced to the extent necessary (but only to that extent) so that no portion of such benefits will be
subject to excise tax under Section 4999 of the Code. Such reduction shall be effected first by reducing the dollar amount of the Participant’s cash severance payments under clause (i) of Section 4(b), clauses (i) and
(v) of Section 4(c) or clauses (iii) and (v) of Section 4(d), as applicable, with such reduction to be applied pro-rata to each such payment without any change in the payment dates, then by reducing his or her lump sum
Pro-rated Annual Incentive payment and finally by reducing the accelerated vesting of his or her outstanding equity awards. All calculations required under this Section 4(f)(i) shall be performed by an independent registered public accounting
firm mutually agreeable to the Company and the Participant (the “Independent Auditors”). The initial calculations shall be completed within thirty (30) business days following the effective date of the Change of Control, and any
additional calculations required in connection with the Participant’s subsequent Separation from Service shall be completed within thirty (30) business days following the date of such Separation from Service. 
 (ii) Parachute Payments Equal to or Greater than 3x Base Amount Plus Fifty Thousand Dollars. If the benefits provided to the
Participant under this Plan or otherwise payable to him or her (a) constitute “parachute payments” within the meaning of Section 280G of the Code, (b) would be subject to the Excise Tax, and (c) the aggregate present
value of those parachute payments, as determined in accordance with Section 280G of the Code and the Treasury Regulations thereunder, equals or exceeds the dollar amount obtained by first multiplying the Participant’s “base
amount” (within the meaning of Code Section 280G(b)(3)) by three (3) and then adding to such product fifty thousand dollars, then (A) those benefits shall be delivered in full to the Participant, and (B) the Participant
shall also receive (1) a payment from the Company sufficient to pay such Excise Tax and (2) an additional payment from the Company sufficient to pay the federal and state income and employment taxes and additional Excise Taxes arising from
the payments made to the Participant by the Company pursuant to this clause (B), with such combined payment herein designated the “Tax Gross-Up.” 
 (iii) 280G Determinations. Within thirty (30) days after any Change of Control transaction in which one or more of the benefits paid or provided to the Participant constitute, in the opinion of the
Independent Auditors, parachute payments under Code Section 280G which equal or exceed the dollar amount calculated under subparagraph (ii) of this Section 4(f), the Independent Auditors shall calculate the Excise Tax attributable to
those payments and the resulting Tax Gross-Up to which the Participant is entitled with respect to such tax liability. Within thirty (30) days after the Participant’s Separation from Service under Section 4(c) or 4(d), the Independent
Auditors shall identify any additional parachute payments which such Participant is to receive pursuant to this Plan in connection with such Separation from Service and submit to the Company and the Participant the calculation of the Excise Tax
attributable to those payments and the resulting Tax Gross-Up to which the 

  

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Participant is entitled with respect to such tax liability. In each such instance, the Company will pay the applicable Tax Gross-Up to the Participant (net
of all applicable withholding taxes, including any taxes required to be withheld under Code Section 4999) within ten (10) business days following the later of (i) the delivery by the Independent Auditors of the calculation of the
applicable Excise Tax and the resulting Tax Gross-Up, provided such calculations represent a reasonable interpretation of the applicable law and regulations or (ii) the date the related Excise Tax is remitted to the appropriate tax authorities.
For purposes of making the calculations required by this Section 4(f), the Independent Auditors may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the
application of Sections 280G and 4999 of the Code. The Company and the Participant shall furnish the Independent Auditors with such information and documents as the Independent Auditors may reasonably request in order to make the calculations
required under this Section 4(f). The Company shall bear all costs the Independent Auditors may reasonably incur in connection with any calculations contemplated by this Section 4(f). 
 (iv) In the event that the Participant’s actual Excise Tax liability is determined by a Final Determination (as defined below) to be
greater than the Excise Tax liability taken into account for purposes of the Tax Gross-Up paid to the Participant pursuant to the preceding provisions of this Section 4(f), then within thirty (30) days following the Final Determination,
the Participant shall submit to the Company a new Excise Tax calculation based upon that Final Determination. The Independent Auditors shall, within the next forty-five (45) days thereafter, calculate (in accordance with the same procedures
applicable to the calculation of the initial Tax Gross-Up payment hereunder) the additional Tax Gross-Up payment to which the Participant is entitled on the basis of the Excise Tax liability resulting from that Final Determination and deliver those
calculations to the Company and the Participant. The Company shall make such additional Tax Gross Up payment to the Participant within ten (10) business days following the later of (i) the delivery of the applicable calculations or
(ii) the date the excess tax liability attributable to the Final Determination is remitted to the appropriate tax authorities. 
 (v) In the event that the Participant’s actual Excise Tax liability is determined by a Final Determination to be less than the Excise Tax liability taken into account for purposes of the Tax Gross-Up paid to the Participant pursuant to
the preceding provisions of this Section 4(f), then the Participant shall refund to the Company, promptly upon receipt, any federal or state tax refund attributable to the Excise Tax overpayment. 
 (vi) For purposes of this Section 4(f), a “Final Determination” means an audit adjustment by the Internal Revenue Service
that is either (i) agreed to by both the Participant (or his or her estate) and the Company (such agreement by the Company to be not unreasonably withheld) or (ii) sustained by a court of competent jurisdiction in a decision with which the
Participant and the Company concur (such concurrence by the Company to be not unreasonably withheld) or with respect to which the period within which an appeal may be filed has lapsed without a notice of appeal being filed. 
  

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 (g) Additional Limitations on Tax Gross-Up. In order to assure that the Tax
Gross-Up provisions of Section 4(f) comply with the applicable requirements of Code Section 409A, the following limitation shall be controlling, notwithstanding anything to the contrary in the preceding provisions of Section 4(f):

 (i) To the extent the Tax Gross-Up (or any additional Tax Gross-Up hereunder) is attributable to any benefits under this
Plan that are triggered by the Participant’s Separation from Service, that portion of the Tax Gross-Up (or additional Tax Gross-Up) shall be subject to the delayed payment provisions of Section 6. 
 (ii) In no event shall any Tax Gross-Up to which the Participant becomes entitled pursuant to Section 4(f) be made later than the
later of (i) the close of the calendar year in which the Excise Tax triggering the right to such payment is paid by or on behalf of the Participant or (ii) the fifteenth day of the third calendar month following the day of
payment of such Excise Tax. 
 (iii) To the extent the Participant may become entitled to any reimbursement of expenses
incurred by him or her at the direction of the Company in connection with any tax audit or litigation addressing the existence or amount of the Excise Tax, such reimbursement shall be paid to the Participant no later than the close of the calendar
year in which the Excise Tax that is the subject of such audit or litigation is paid by or on behalf of the Participant or, if no Excise Tax is found to be due as a result of such audit or litigation, no later than the later of
(i) the close of the calendar year in which the audit is completed or there is a final and nonappealable settlement or other resolution of the litigation or (ii) the fifteenth day of the third calendar month following the date the audit is
completed or the date the litigation is so settled or resolved. 
 (h) Mitigation Required. Payments and benefits
provided for under the Plan shall be reduced by any compensation or benefits earned by the Participant as a result of any earnings or benefits that the Participant may receive from any other source following his or her termination of employment.
Moreover, payments and benefits provided for under the Plan shall be reduced by any payments or benefits received by Participant pursuant to any other plan, policy, agreement or arrangement with the Company. 
 5. Covenants Not to Compete and Not to Solicit. 
 (a) Remedies for Breach. The Company’s obligations to provide Severance Payments as provided in Section 4 are expressly conditioned upon the Participant’s covenants not to compete and not to
solicit as provided herein. In the event the Participant breaches his or her obligations to the Company as provided herein, the Company’s obligations to make Severance Payments to the Participant pursuant to Section 4 shall cease (subject
to Section 5(b) below), without prejudice to any other remedies that may be available to the Company. 
 (b) Covenant
Not to Compete. If a Participant is receiving Severance Payments pursuant to Section 4 hereof, then for the duration of the Severance Period, the Participant shall not directly engage in (whether as an employee, consultant, proprietor,
partner, director or otherwise), or have any ownership interest in, or participate in the financing, operation, management or control of, any person, firm, corporation or business that engages or participates anywhere in the world in providing

  

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goods and services similar to those provided by the Company upon the date of the Participant’s termination of employment. Ownership of less than 3% of
the outstanding voting stock of a publicly-held corporation or other entity shall not constitute a violation of this provision. In the event of a violation of this Section 5(b) by a Participant, all severance benefits payable to the Participant
under this Plan shall cease, except that the Participant shall nonetheless be entitled to receive, as consideration for his or her delivery of an effective Required Release, the cash severance payments contemplated by Section 4(b)(i), 4(c)(i)
or 4(d)(iii) (as applicable) for a period equal to the greater of (i) the period of time between the date of the Participant’s Separation from Service and the date of violation of this Section 5(b) and (ii) the six
(6) months following the date of the Participant’s Separation from Service. 
 (c) Covenant Not to Solicit.
If a Participant is receiving Severance Payments pursuant to Section 4 hereof, he or she shall not, at any time during the Severance Period, directly or indirectly solicit any individuals to leave the Company’s employ for any reason
or interfere in any other manner with the employment relationships at the time existing between the Company and its current or prospective employees. 
 (d) Representations. The covenants contained in this Section 5 shall be construed as a series of separate covenants, one for each county, city and state (or analogous entity) and country of the world. If,
in any judicial proceeding, a court shall refuse to enforce any of the separate covenants, or any part thereof, then such unenforceable covenant, or such part thereof, shall be deemed eliminated from this Plan for the purpose of those proceedings to
the extent necessary to permit the remaining separate covenants, or portions thereof, to be enforced. 
 (e)
Reformation. In the event that the provisions of this Section 5 should ever be deemed to exceed the time or geographic limitations, or scope of this covenant, permitted by applicable law, then such provisions shall be reformed to the
maximum time or geographic limitations, as the case may be, permitted by applicable laws. 
 6. Special Limitations on Benefit
Payments. The following special provisions shall govern the commencement date of the payments and benefits to which a Participant may become entitled under the Plan: 
 (a) Notwithstanding any provision in this Plan to the contrary (other than Section 6(b) below), no payment or benefit under the Plan
which constitutes an item of deferred compensation under Section 409A of the Code and becomes payable by reason of the Participant’s Separation from Service will be made to such Participant prior to the earlier of
(i) the first day following the six-month anniversary of the date of Separation of Service or (ii) the date of the Participant’s death, if the Participant is deemed at the time of such Separation from Service to be a Specified
Employee and such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2). Upon the expiration of the applicable deferral period, all payments, benefits and reimbursements deferred
pursuant to this Section 6(a) (whether they would have otherwise been payable in a single sum or in installments in the absence of such deferral) shall be paid or provided to the Participant in a lump sum on the first day of the seventh
(7th) month after the date of his or her Separation from Service or, if earlier, the first day of the month immediately following the date the Company receives proof of his or her death. Any remaining payments or benefits due under the Plan
will be paid in accordance with the normal payment dates specified herein. 
  

 11 

 (b) Notwithstanding Section 6(a) above, the following provisions shall also be
applicable to a Participant who is a Specified Employee at the time of his or her Separation of Service: 
 (i) Any payments
or benefits under the Plan which become due and payable to such Participant during the period beginning with the date of his or her Separation from Service and ending on March 15 of the following calendar year shall not be subject to the six
(6)-month holdback under Subsection 6.A and shall accordingly be paid as and when they become due and payable under the Plan. 
 (ii) The remaining portion of the payments and benefits to which the Participant becomes entitled under the Plan, to the extent they do not in the aggregate exceed the dollar limit described below and are otherwise scheduled to be paid no
later than the last day of the second calendar year following the calendar year in which the Participant’s Separation from Service occurs, shall not be subject to any deferred commencement date under Section 6(a) and shall be paid to the
Participant as they become due and payable under the Plan. For purposes of this subparagraph (ii), the applicable dollar limitation will be equal to two times the lesser of (i) the Participant’s annualized compensation (based
on his or her annual rate of pay for the calendar year preceding the calendar year of his or her Separation from Service, adjusted to reflect any increase during that calendar year which was expected to continue indefinitely had such Separation from
Service not occurred) or (ii) the compensation limit under Section 401(a)(17) of the Code as in effect in the year of such Separation from Service. To the extent the portion of the severance payments and benefits to which the Participant
would otherwise be entitled under the Plan during the deferral period under Section 6(a) exceeds the foregoing dollar limitation and the amount payable pursuant to subparagraph (i) above, such excess shall be paid in a lump sum upon the
expiration of that deferral period, in accordance with the payment delay provisions of Section 6(a), and the remaining severance payments and benefits (if any) shall be paid in accordance with the normal payment dates specified for them herein.

 7. Employment Status; Withholding 
 (a) Employment Status. This Plan does not constitute a contract of employment or impose on the Participant or the Company any obligation to retain the Participant as an Employee, to change the status of the
Participant’s employment, or to change the Company’s policies regarding termination of employment. The Participant’s employment is and shall continue to be at-will, as defined under applicable law. If the Participant’s employment
with the Company or a successor entity terminates for any reason, the Participant shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Plan or available in accordance with the Company’s
established employee plans and practices or other agreements with the Company at the time of termination. 
 (b) Taxation
of Plan Payments. All amounts paid pursuant to this Plan shall be subject to all applicable payroll and withholding taxes. 
  

 12 

 8. Arbitration. Any dispute or controversy that shall arise out of the terms and conditions of the
Plan and that cannot be resolved within thirty (30) days of the dispute or controversy through good-faith negotiation or non-binding mediation between the Participant and the Company, shall be subject to binding arbitration in Santa Clara,
California before the American Arbitration Association under its National Rules for the Resolution of Employment Disputes, supplemented by the California Rules of Civil Procedure. The Company and the Participant shall each bear their own respective
costs and attorneys’ fees incurred in connection with the arbitration; and the Company shall pay the arbitrator’s fees, unless law applicable at the time of the arbitration hearing requires otherwise. The arbitrator shall issue a written
decision that sets forth the essential findings of fact and conclusions of law on which the award is based. The arbitrator’s decision shall be final and binding to the fullest extent permitted by law and enforceable by any court having
jurisdiction thereof. 
 9. Successors to Company and Participants. 
 (a) Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Plan and agree expressly to perform the obligations under this Plan by executing a written
agreement. For all purposes under this Plan, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this subsection or which becomes
bound by the terms of this Plan by operation of law. 
 (b) Participant’s Successors. All rights of the
Participant hereunder shall inure to the benefit of, and be enforceable by, the Participant’s personal or legal representatives, executors, administrators, successors, heirs, devisees and legatees. 
 10. Duration, Amendment and Termination 
 (a) Duration. The initial term of this Plan shall be three (3) years from the Original Effective Date. At the end of the initial three (3) year term and any subsequent annual terms, the Plan shall be
automatically extended for a one (1) year period unless terminated by the Committee prior to the end of such term, provided that any such termination shall be effective only with respect to future Plan Years. Participants shall be given notice
of a Plan termination within sixty (60) days of the Committee’s decision. A termination of this Plan pursuant to the preceding sentence shall be effective for all purposes, except that such termination shall not affect the right of a
Participant whose Separation from Service occurred prior to the termination date of the Plan to receive any Severance Payment to which such Participant is then entitled under the terms of the Plan. 
 (b) Change of Control. In the event of a Change of Control during the term of the Plan, the term of the Plan shall automatically be
the Change of Control Period. 
 (c) Amendment. The Committee shall have the discretionary authority to amend the Plan
at any time, except that no such amendment shall affect the right of a Participant whose Separation from Service occurred prior to the amendment date of the Plan to receive any Severance Payment to which such Participant is then entitled under the
terms of the Plan without the written consent of the Participant. 
  

 13 

 (d) No Impermissible Acceleration or Deferral. Any action by the Committee to
terminate the Plan or amend the Plan in accordance with the foregoing provisions of this Section 10 shall be effected in a manner so as not to result in any impermissible acceleration or deferral of benefits under Code Section 409A or the
Treasury Regulations thereunder. 
 11. Plan Administration 
 (a) Plan Administrator. The Plan shall be administered by the Committee and the Committee shall be responsible for the general
administration and interpretation of the Plan and for carrying out its provisions. The Committee shall have such powers as may be necessary to discharge its duties hereunder. 
 (b) Procedures. The Committee may adopt such rules, regulations and bylaws and shall have the discretionary authority to make such
decisions as it deems necessary or desirable for the proper administration of the Plan. Any rule or decision by the Committee shall be conclusive and binding upon all Participants. 
 12. Miscellaneous Provisions. 
 (a) Notices and all other communications contemplated by this Plan shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and
postage prepaid. In the case of the Participant, mailed notices shall be addressed to him or her at the home address which he or she most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed
to the Company’s Vice President, Human Resources, 1 Technology Drive, Milpitas, CA 95035. 
 (b) The invalidity or
unenforceability of any provision of this Plan shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
 (c) The rights of any person to payments or benefits under this Plan shall not be made subject to option or assignment, either by
voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this subsection shall be void. However, payments and
benefits under the Plan may be reduced or offset by any amount a Participant may owe the Company, to the extent permitted by applicable law. 
 (d) Company may assign its rights under this Plan to an affiliate, and an affiliate may assign its rights under this Plan to another affiliate of the Company or to the Company; provided, however, that no assignment
shall be made if the net worth of the assignee is less than the net worth of the Company at the time of assignment; provided, further, that the Company shall guarantee all benefits payable hereunder. In the case of any such assignment, the term
“Company” when used in this Plan shall mean the corporation that actually employs the Participant. 
  

 14 

 (e) To the extent there is any ambiguity as to whether any provision of this Plan would otherwise
contravene one or more requirements or limitations of Code Section 409A, such provision shall be interpreted and applied in a manner that does not result in a violation of the applicable requirements or limitations of Code Section 409A and
the Treasury Regulations thereunder. 
 IN WITNESS WHEREOF, KLA-Tencor Corporation has caused this amended and restated Plan to be
executed by a duly authorized officer effective as of November 13, 2008 
  

			
	KLA-TENCOR CORPORATION
		
	By:	 	/s/ BRIAN M. MARTIN
	Name:	 	Brian M. Martin
	Title:	 	Senior Vice President and General Counsel
	Dated:	 	December 19, 2008

  

 15Executive Deferred Savings Plan

 Exhibit 10.49 
 KLA-TENCOR 
 EXECUTIVE DEFERRED SAVINGS PLAN 
 AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2009 

					
	ARTICLE I	  	DEFINITIONS	  	1
			
	1.1	  	“Account”	  	1
	1.2	  	“Affiliated Company”	  	2
	1.3	  	“Beneficiary”	  	2
	1.4	  	“Board of Directors”	  	2
	1.5	  	“Bonus”	  	2
	1.6	  	“Code”	  	2
	1.7	  	“Committee”	  	2
	1.8	  	“Company”	  	2
	1.9	  	“Company Contribution”	  	2
	1.10	  	“Credited Investment Return (Loss)”	  	2
	1.11	  	“Deferral Amount”	  	3
	1.12	  	“Deferral Election”	  	3
	1.13	  	“Early Termination”	  	3
	1.14	  	“Effective Date”	  	3
	1.15	  	“Eligible Employee”	  	3
	1.16	  	“Employee”	  	3
	1.17	  	“Employer Group”	  	3
	1.18	  	“Extended Deferral Election”	  	4
	1.19	  	“Hardship”	  	4
	1.20	  	“KLA”	  	4
	1.21	  	“Normal Termination”	  	4
	1.22	  	“Old KLA Plan”	  	4
	1.23	  	“Outside Director”	  	4
	1.24	  	“Participant”	  	5
	1.25	  	“Participating Employer”	  	5
	1.26	  	“Performance Period”	  	5
	1.27	  	“Plan”	  	5
	1.28	  	“Plan Year”	  	5
	1.29	  	“Prior Plans”	  	5
	1.30	  	“Prior Plan Company Contribution”	  	5
	1.31	  	“Prior Policy”	  	5
	1.32	  	“Retention Period”	  	5
	1.33	  	“Separation from Service”	  	5
	1.34	  	“Specified Employee”	  	6
	1.35	  	“Supplemental Executive Benefits”	  	6
	1.36	  	“Tencor”	  	6
	1.37	  	“Trust”	  	6
	1.38	  	“Trust Agreement”	  	6
	1.39	  	“Trustee”	  	6
	1.40	  	“Year of Service”	  	6
			
	ARTICLE II	  	ELIGIBILITY	  	7
			
	2.1	  	Eligible Persons	  	7
	2.2	  	Continuation of Participation	  	7
	2.3	  	Resumption of Participation Following Separation from Service	  	7
	2.4	  	Cessation or Resumption of Participation Following a Change in Status	  	8

  

 -i- 

					
			
	ARTICLE III	  	SALARY, COMMISSION AND BONUS REDUCTION CONTRIBUTIONS; COMPANY CONTRIBUTIONS	  	8
			
	3.1	  	Salary and Commission Deferrals	  	8
	3.2	  	Annual Bonus Deferrals	  	9
	3.3	  	Requirements for Deferral Elections	  	10
	3.4	  	Limitations on Deferrals	  	12
	3.5	  	Deferral Election Subaccounts	  	12
	3.6	  	Subsequent Distribution	  	12
	3.7	  	Company Contributions	  	12
			
	ARTICLE IV	  	CREDITED INVESTMENT RETURN (LOSS) ON DEFERRAL ACCOUNTS	  	13
			
	4.1	  	Accounts	  	13
	4.2	  	Credited Investment Return (Loss)	  	13
	4.3	  	Deemed Investment Options	  	13
			
	ARTICLE V	  	DISTRIBUTION OF PRE-2005 DEFERRED ACCOUNT	  	13
			
	5.1	  	Distribution of Benefits upon Normal Termination	  	13
	5.2	  	Distribution of Benefits upon Early Termination	  	14
	5.3	  	Election of Form of Benefit Payment	  	15
	5.4	  	Payment to Beneficiary	  	15
	5.5	  	Early Withdrawals	  	15
	5.6	  	Automatic Lump-Sum Distribution for Accounts below $25.000	  	16
	5.7	  	Valuation	  	16
	5.8	  	Tax Withholding	  	16
	5.9	  	Outside Directors	  	16
			
	ARTICLE VI	  	DISTRIBUTION OF 2005-2007 DEFERRED ACCOUNT	  	17
			
	6.1	  	Special Distribution Election	  	17
	6.2	  	Commencement Date	  	17
	6.3	  	Method of Distribution	  	17
	6.4	  	Continuing Elections	  	18
	6.5	  	Tax Withholding	  	18
			
	ARTICLE VII	  	DISTRIBUTION OF POST 2007 DEFERRAL ELECTION SUBACCOUNTS	  	18
			
	7.1	  	Normal Distribution	  	18
	7.2	  	Tax Withholding	  	18
	7.3	  	Special Distribution Election	  	18
			
	ARTICLE VIII	  	PROVISIONS APPLICABLE TO 2005-2007 ACCOUNTS AND POST-2007 DEFERRAL ELECTION SUBACCOUNTS	  	19
			
	8.1	  	Extended Deferral Election	  	19
	8.2	  	Distribution Commencement Date	  	19
	8.3	  	Hardship Withdrawal	  	20
	8.4	  	Death Before Full Distribution	  	20
	8.5	  	Valuation	  	20
	8.6	  	Small Account Balances	  	20
	8.7	  	Mandatory Deferral of Distribution	  	21

  

 ii 

					
			
	ARTICLE IX	  	BENEFICIARIES	  	21
			
	9.1	  	Designation of Beneficiary	  	21
	9.2	  	No Designated Beneficiary	  	21
			
	ARTICLE X	  	OBLIGATION TO PAY SUPPLEMENTAL EXECUTIVE BENEFITS	  	21
			
	10.1	  	Benefits Paid From Trust	  	21
	10.2	  	Trustee Investment Discretion	  	21
	10.3	  	No Secured Interest	  	22
			
	ARTICLE XI	  	ADMINISTRATION	  	22
			
	11.1	  	Administration of the Plan	  	22
	11.2	  	Indemnification	  	22
			
	ARTICLE XII	  	MISCELLANEOUS	  	22
			
	12.1	  	No Employment Right	  	22
	12.2	  	Amendment/Termination	  	22
	12.3	  	Applicable Law	  	24
	12.4	  	Satisfaction of Claims	  	24
	12.5	  	Alienation of Benefits	  	24
	12.6	  	Expenses	  	24
	12.7	  	Successors and Assigns	  	24
	12.8	  	Reimbursement of Costs	  	25
	12.9	  	Arbitration	  	25
	12.10	  	Entire Agreement	  	25
			
	ARTICLE XIII	  	BENEFIT CLAIMS	  	25
			
	13.1	  	Claims Procedure	  	25
	13.2	  	Denial of Benefits	  	25
	13.3	  	Review	  	26
	13.4	  	Denial of Appeal	  	26

 APPENDIX I 
 SCHEDULE
I 
  

 iii 

 KLA-TENCOR EXECUTIVE DEFERRED SAVINGS PLAN 
 AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2009 
 This KLA-Tencor Executive
Deferred Savings Plan was originally adopted effective October 1, 1997 to amend, restate and consolidate in their entirety the KLA Instruments Corporation Supplemental Executive Benefit Plan and the Tencor Instruments Amended and Restated
Deferral Plan. The Plan is hereby amended and restated, effective January 1, 2009, to conform the provisions of the Plan to the applicable requirements of Section 409A of the Internal Revenue Code and the Treasury Regulations issued
thereunder and thereby bring the Plan into documentary compliance with those requirements. The Plan as so amended and restated shall continue to function solely as a so-called “top hat” plan of deferred compensation subject to the
provisions of the Employee Retirement Income Security Act of 1974 (as amended from time to time) applicable to such a plan. 
 ARTICLE I

 DEFINITIONS 
 Whenever used herein, the masculine pronoun shall be deemed to include the feminine, and the singular to include the plural, unless the context clearly indicates otherwise, and the following definitions shall govern the Plan: 
 1.1 “Account” shall mean the following accounts maintained for each Participant on the books and records of the
Participating Employer to which there shall be credited the items of compensation deferred by such Participant under the Plan: 
 (a) The Pre-2005 Deferred Account to which there shall be credited the following items of compensation which were deferred and vested under the Plan as of December 31, 2004: the Participant’s Deferral Amounts pursuant to
Article III, any Company Contributions and any Prior Plan Company Contributions. Such account shall be subject to adjustment from time to time to reflect the Credited Investment Return (Loss) determined under Article IV, any distributions made to
Participant and any charges which may be imposed on such account pursuant to the terms of the Plan. 
 (b) The 2005-2007
Deferred Account to which there shall be credited the following items of compensation which were deferred under the Plan after December 31, 2004 but prior to January 1, 2008 or which were deferred under the Plan prior to
January 1, 2005 but were not vested as of December 31, 2004: the Participant’s Deferral Amounts pursuant to Article III and any Company Contributions. Such account shall be subject to adjustment from time to time to reflect the
Credited Investment Return (Loss) determined under Article IV, any distributions made to Participant and any charges which may be imposed on such account pursuant to the terms of the Plan. 
 (c) The Post-2007 Plan Year Account which will be divided into a series of Deferral Election Subaccounts, one for each post-2007
Plan Year in which the Participant defers one or more of the following items of compensation earned for services rendered the 

 
Participating Companies after December 31, 2007: the Participant’s Salary and Commission Deferral Amounts pursuant to Article III, any Bonuses
attributable to Performance Periods commencing after December 31, 2007 and any Company Contributions. 
 Each Account or
Subaccount shall be subject to adjustment from time to time to reflect the Credited Investment Return (Loss) determined for that Account or Subaccount pursuant to Article IV, any distributions made to the Participant from that Account or Subaccount
and any charges which may be imposed on such Account or Subaccount pursuant to the terms of the Plan. 
 1.2 “Affiliated
Company” shall mean (i) the Company and (ii) each member of the group of commonly controlled corporations or other businesses that include the Company, as determined in accordance with Sections 414(b) and (c) of the Code
and the Treasury Regulations thereunder. 
 1.3 “Beneficiary” means any of the persons, trusts or other
entities which a Participant shall, in his or her most recent written form of beneficiary designation filed with the Company, have designated as a beneficiary to receive benefits which may become payable hereunder following Participant’s death,
as provided under Articles V and VIII. 
 1.4 “Board of Directors” or “Board”
means the Company’s Board of Directors. 
 1.5 “Bonus” means the annual, semi-annual or quarterly bonus which
the Participant may earn based on the attainment of performance objectives established for a designated Performance Period or the continuation in Employee status through the completion of a specified Retention Period. 
 1.6 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 1.7 “Committee” means an independent committee of two or more individuals appointed by the Board to administer this Plan,
including the selection of Participants, the administration of the Deferral Election process and the designation of the available investment funds, and to take such other actions as may be specified herein. 
 1.8 “Company” means KLA-Tencor Corporation, a Delaware corporation, and any successor or assignee corporation, whether by way of
merger, acquisition or other reorganization. 
 1.9 “Company Contribution” means a contribution made on behalf
of a Participant by the Company pursuant to Section 3.7 hereof. 
 1.10 “Credited Investment Return
(Loss)” means the notional investment return credited to the Participant’s Accounts or Deferral Election Subaccounts pursuant to Article IV. 
  

 2 

 1.11 “Deferral Amount” means the Salary and/or Commission Deferral Amount and the
Bonus Deferral Amount which the Participant elects to contribute for Supplemental Executive Benefits pursuant to the Plan. For Participants who are non-employee Board members, the Deferral Amount means the retainer and meeting fees earned for
service as a Board member or a member of one or more Board committees. 
 1.12 “Deferral Election” means the
irrevocable election filed by the Participant under Article III pursuant to which a portion of his or her Salary, Commissions and Bonus for each Plan Year is to be deferred under the Plan. 
 1.13 “Early Termination” means, with respect to any pre-2005 Account, the Participant’s termination of Employee status other
than pursuant to a Normal Termination. 
 1.14 “Effective Date” means, for this Amendment and Restatement,
January 1, 2009. 
 1.15 “Eligible Employee” means any Employee who is either a highly compensated employee of
his or her Participating Employer or part of its management personnel, as determined pursuant to guidelines established from time to time by the Committee. In no event shall any of the following individuals be deemed to be Eligible Employees:

 (i) an Employee who is not on the United States payroll of a Participating Employer, 
 (ii) any individual classified as an independent contractor or consultant or as a temporary employee, or 
 (iii) any individual who has ceased Employee status or otherwise incurred a Separation from Service. 
 1.16 “Employee” means any person in the employ of one or more members of the Employer Group, subject to the control and direction
of the employer entity as to both the work to be performed and the manner and method of performance. An individual shall be deemed to continue in Employee status for so long as he or she continues in the employee of at least one member of the
Employer Group. 
 1.17 “Employer Group” means (i) the Company and (ii) each of the other members of
the controlled group that includes the Company, as determined in accordance with Sections 414(b) and (c) of the Code, except that in applying Sections 1563(1), (2) and (3) of the Code for purposes of determining the controlled group
of corporations under Section 414(b), the phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place the latter phrase appears in such sections and in applying Section 1.414(c)-2 of the
Treasury Regulations for purposes of determining trades or businesses that are under common control for purposes of Section 414(c), the phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place
the latter phrase appears in Section 1.4.14(c)-2 of the Treasury Regulations. 
  

 3 

 1.18 “Extended Deferral Election” shall mean a Participant’s
election, made in accordance with the terms and conditions of Section 8.1 of the Plan, to defer the distribution of any of his or her Post-2004 Accounts or Deferral Election Subaccounts for an additional period of at least five (5) years
measured from the date or event on which that particular Account or Subaccount would otherwise first become due and payable under the Plan in the absence of such election. 
 1.19 “Hardship” means a severe financial hardship to the Participant resulting from: 
 (a) a sudden or unexpected illness or accident of the Participant, his or her spouse or any dependent (as determined in accordance with
Section 152 of the Code), or 
 (b) a casualty loss involving the Participant’s property or other similar
extraordinary and unforeseeable event beyond the control of the Participant. 
 A severe financial hardship shall not constitute a Hardship
under the Plan to the extent that it is, or may be, relieved by: 
 (i) reimbursement or compensation, by insurance or
otherwise; 
 (ii) cancellation of the Participant’s Deferral Election under the Plan; or 
 (iii) liquidation of the Participant’s assets to the extent that the liquidation of such assets would not itself cause severe
financial hardship. 
 A Hardship under the Plan shall in no event include: 
 (i) sending a child to college; or 
 (ii) purchasing a home 
 1.20 “KLA” means KLA Instruments Corporation
or any of its subsidiaries. 
 1.21 “Normal Termination” means, with respect to any pre-2005 Account, the
Participant’s termination of Employee status on or after (i) the attainment of age fifty five (55) and the completion of at least five (5) Years of Service or (ii) the completion of at least fifteen (15) Years of
Service and means, with respect to any other Account or Subaccount, the Participant’s Separation from Service on or after the attainment of age fifty five (55) and the completion of at least five (5) Years of Service. 
 1.22 “Old KLA Plan” shall mean the KLA Instruments Corporation Supplemental Executive Benefit Plan, as in effect on
September 30, 1997. 
 1.23 “Outside Director” means any member of the Board of Directors who is not an
Employee. 
  

 4 

 1.24 “Participant” means (i) an Eligible Employee selected for participation
in the Plan in accordance with the provisions of Section 2.1 or (ii) any Outside Director electing to participate in the Plan. 
 1.25 “Participating Employer” means, with respect to each Participant, the Affiliated Company employing that individual which has adopted the Plan as a deferred compensation program for one or more of
its Employees. The Participating Employers for the 2007 Plan Year are set forth in attached Schedule I. Any additional Affiliated Companies which may from time to time become Participating Employers shall be listed in revised Schedule I. 

1.26 “Performance Period” means, with respect to any annual, semi-annual or quarterly Bonus that is tied to the attainment of
performance objectives, the period over which those performance objectives are to be measured for purposes of determining the amount of such Bonus (if any) to be earned by the Participant for service during that period. Accordingly, the Performance
Period may be coincident with the Company’s fiscal year or with one or more semi-annual or quarterly periods within such fiscal year. 
 1.27 “Plan” means this KLA-Tencor Executive Deferred Savings Plan, as it may be amended from time to time. 
 1.28 “Plan Year” means, effective January 1, 2005, the 12-month period coincidental with each calendar year. 
 1.29 “Prior Plans” means the KLA Instruments Corporation Supplemental Executive Benefit Plan and the Tencor Instruments Amended and Restated Deferral Plan. 
 1.30 “Prior Plan Company Contribution” means the amount, if any, which the Company contributed on behalf of Participants for
Supplemental Executive Benefits under the Prior Plans. Any Prior Plan Company Contributions that were credited to Participant Accounts as of October 1, 1997 and had not already been forfeited as of such date became 100% vested on that date.

 1.31 “Prior Policy” means the life insurance policy on the life of a Participant maintained pursuant to a Prior
Plan. 
 1.32 “Retention Period” means, with respect to any annual, semi-annual or quarterly Bonus that is tied to
continuation in Employee status, the period of service in such capacity that must be completed in order to earn that Bonus. The Retention Period may be coincident with the Plan Year or with one or more semi-annual or quarterly periods within such
Plan Year. 
 1.33 “Separation from Service” means the Participant’s cessation of Employee status by
reason of his or her death, retirement or termination of employment. The Participant shall be deemed to have terminated employment for such purpose at such time as the level of his or her bona fide services to be performed as an Employee (or
non-employee consultant) permanently decreases to a level that is not more than twenty percent (20%) of the average level of services he or she rendered as an Employee during the immediately preceding thirty-six (36) months (or such
shorter period for which he or she may have rendered such service). Any such determination as to Separation from Service, however, shall be made in accordance with the 

  

 5 

 
applicable standards of the Treasury Regulations issued under Code Section 409A. In addition to the foregoing, a Separation from Service will not be
deemed to have occurred while an Employee is on military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six (6) months or any longer period for which such Employee’s right to reemployment
with one or more members of the Employer Group is provided either by statute or contract; provided, however, that in the event of an Employee’s leave of absence due to any medically determinable physical or mental impairment that
can be expected to result in death or to last for a continuous period of not less than six (6) months and that causes such individual to be unable to perform his or her duties as an Employee, no Separation from Service shall be deemed to occur
during the first twenty-nine (29) months of such leave. If the period of leave exceeds six (6) months (or twenty-nine (29) months in the event of disability as indicated above) and the Employee’s right to reemployment is not
provided either by statute or contract, then such Employee will be deemed to have a Separation from Service on the first day immediately following the expiration of such six (6)-month or twenty-nine (29)-month period. 
 1.34 “Specified Employee” means any individual who is, at any time during the twelve (12)-month period ending with the
identification date specified below, a “key employee” (within the meaning of that term under Code Section 416(i)), as determined by the Committee in accordance with the applicable standards of Code Section 409A and the Treasury
Regulations thereunder and applied on a consistent basis for all non-qualified deferred compensation plans of the Employer Group subject to Code Section 409A. The Specified Employees shall be identified by the Committee on December 31 of
each Plan Year and shall have that status for the twelve (12)-month period beginning on the April 1 subsequent to such determination by the Committee. 
 1.35 “Supplemental Executive Benefits” means the benefits payable to the Participant and/or his or her Beneficiary under this Plan. 
 1.36 “Tencor” means Tencor Instruments or any of its subsidiaries. 
 1.37 “Trust” means the legal entity created by the Trust Agreement. 
 1.38 “Trust Agreement” means that trust agreement entered into between the Company and Wells Fargo Bank. 
 1.39 “Trustee” means the original Trustee(s) named in the Trust Agreement and any duly appointed successor or successors thereto.

 1.40 “Year of Service” means each twelve (12) consecutive month period of Employee service
measured from the date on which the Participant initially became a Company, KLA or Tencor employee, and successive anniversaries thereof, during which the Participant continues in Employee status, including leaves of absence approved by the Company
or other member of the Employer Group. Should the Participant cease Employee status and then return to such status, the following break in service provisions shall be in effect: 
 (i) The period of Employee service following such break shall be measured from the date of the Participant’s return and shall be
aggregated with the period of Employee service he or she rendered prior to the break to determine his or her total Years of Service. 
  

 6 

 (ii) The Participant shall not receive any Year of Service credit for the period of the
break in service if the break is of a duration of twelve (12) months or more. 
 ARTICLE II 
 ELIGIBILITY 
 2.1 Eligible
Persons. The Committee shall have absolute discretion in selecting the Eligible Employees who are to participate in the Plan for each Plan Year. An Eligible Employee selected for participation for any Plan Year must, in order to participate
in the Plan for that year, file his or her Deferral Election on or before the last day of the immediately preceding Plan Year. However, an Eligible Employee who is first selected for participation in the Plan after the start of a Plan Year and who
has not otherwise been eligible for participation in any other non-qualified elective account balance plan subject to Code Section 409A and maintained by one or more Affiliated Companies will have until the thirtieth (30th) day following
the date he or she is so selected in which to file his or her Deferral Election for that Plan Year. Individuals who are selected for participation in the Plan shall be promptly notified by the Company of their eligibility to participate in the Plan.
Outside Directors shall automatically be eligible to participate in the Plan and must make their Deferral Elections in accordance with the same requirements set forth above for Employee Participants. Notwithstanding the foregoing, Participants
receiving benefits pursuant to the Corporate Officers Severance Plan or the Management Severance Plan are not eligible to participate in the Plan and are deemed to have ceased Employee status for Plan purposes. 
 2.2 Continuation of Participation. Every Eligible Employee who becomes a Participant may continue to file Deferral Elections under the Plan
for one or more subsequent Plan Years until the earliest of (i) his or her exclusion from the Plan upon written notice from the Committee, (ii) his or her cessation of Eligible Employee status or (iii) the termination of
the Plan. The Committee shall have complete discretion to exclude one or more Eligible Employees from Participant status for one or more Plan Years as the Committee deems appropriate. However, no such exclusion authorized by the Committee shall
become effective until the first day of the first Plan Year coincident with or next following the date of the Committee’s determination to exclude the individual from such participation. If any Eligible Employee is excluded from Participant
status for one or more Plan Years, then such individual shall not be entitled to defer any part of his or her Salary, Bonus or Commissions for those Plan Years. 
 2.3 Resumption of Participation Following Separation from Service. If a Participant ceases to be an Eligible Employee or an Outside Director due to a Separation from Service and thereafter returns to
service with the Company or any other Participation Company, such individual will again become a Participant as of the first day the first Plan Year coincident with or next following the date on which he or she resumes Eligible Employee or Outside
Director status, provided such individual files a timely a Deferral Election under Article III with respect to that Plan Year. However, a Participant who returns to Eligible Employee or Outside Director status after a Separation from Service of more
than twenty-four (24) months during which he or she was not eligible to defer any compensation under this Plan or any other non-qualified elective account balance plan subject to Code Section 409A and maintained by one or more Affiliated
Companies shall, upon resumption of such service, be permitted to make a Deferral Election under Article III in accordance with the requirements applicable to a 

  

 7 

 
newly-selected Participant. Notwithstanding the foregoing provisions of this Section 2.3, no returning Eligible Employee shall be eligible to
participate in the Plan if the Committee determines to exclude such individual from participation on or before his or her resumption of service. 
 2.4 Cessation or Resumption of Participation Following a Change in Status. If any Participant continues in the service of the Employer Group but ceases to be an Eligible Employee or Outside Director, the individual will
continue to be a Participant until the entire amount of his or her Accounts distributed. However, the individual will not be entitled to make any Deferral Elections with respect to compensation earned for the period that he or she is not an Eligible
Employee or Outside Director. In the event that the individual subsequently resumes Eligible Employee or Outside Director status, he or she will again become a Participant as of the first day the first Plan Year coincident with or next following the
date of his or her resumption of Eligible Employee or Outside Director status, provided such individual files a timely a Deferral Election under Article III with respect to that Plan Year. However, an Eligible Employee shall not be eligible to
participate in the Plan upon his or her resumption of Eligible Employee status if the Committee determines to exclude such individual from participation on or before such resumption of Eligible Employee status. 
 ARTICLE III 
 SALARY, COMMISSION AND
BONUS REDUCTION 
 CONTRIBUTIONS; COMPANY CONTRIBUTIONS 
 3.1 Salary and Commission Deferrals. 
 (a) Each Employee Participant shall have the right to file a Deferral Election to defer a portion of the salary and/or commissions earned by such Participant for service as an Employee during the Plan Year for which
the Deferral Election is made. Each Deferral Election must be made by a written or electronic notice filed with the Committee or its designate in which the Participant shall indicate the percentage (up to one hundred percent) of the salary and/or
commissions to be deferred. The notice must be filed on or before the last day of the calendar year immediately preceding the start of the Plan Year for which the salary and/or commissions subject to that election are to be earned. However, an
Eligible Employee who is first selected for participation in the Plan after the start of a Plan Year and who has not otherwise been eligible for participation in any other non-qualified elective account balance plan subject to Code Section 409A
and maintained by one or more Affiliated Companies must file his or her initial Deferral Election no later than thirty (30) days after the date he or she is so selected. Such Deferral Election shall only be effective for salary and/or
commissions attributable to Employee service for the period commencing with the first day of the first calendar month next following the filing of such Deferral Election and ending with the close of such Plan Year. 
 (b) For purposes of determining the compensation which may be deferred pursuant to a Deferral Election under Section 3.1(a), the
following provisions shall be in effect: 
 (i) Salary shall mean the Participant’s base salary, and commissions shall
mean the Participant’s sales commissions. 
  

 8 

 (ii) For any Deferral Election made with respect to commissions, the commissions will be
deemed to be earned as a result of the Participant’s service in the Plan Year in which the customer payments relating to the sales generating those particular commissions are made to the Participating Employer. Accordingly, such commissions
shall only be deferred under the Plan to the extent the Participant has a Deferral Election covering commissions for that Plan Year. 
 (iii) For purposes of any Deferral Election made by an Outside Director, salary shall mean the compensation payable to the Outside Director for service as a member of the Board and any Board committee and/or for attendance at meetings of
the Board or any Board committee on which such Outside Director serves. 
 (c) The salary and commissions deferred for each
Plan Year shall be designated the “Salary and Commission Deferral Amount” for that Plan Year. The Salary and Commission Deferral Amount shall not be paid to the Participant, but shall be withheld from the Participant’s salary and/or
commissions, and an amount equal to the Salary and Commission Deferral Amount shall be credited to the Participant’s Deferral Election Subaccount for the Plan Year within ten business days following the date on which such deferred amount would
otherwise have been paid to the Participant in the absence of the Deferral Election. The same procedure shall be utilized for crediting any fees which an Outside Director elects to defer under the Plan, except that the deferred fees shall be
credited to his or her Deferral Election Subaccount within thirty business days following the date on which those deferred fees would otherwise have been paid to the Outside Director in the absence of the Deferral Election. 
 (d) The Deferral Election for a particular Plan Year shall become irrevocable as of the first day of that Plan Year (or any later day the
Deferral Election for such Plan Year may be filed under Section 3.1(a) by a newly-eligible Participant), and no subsequent changes may be made to that Deferral Election once it becomes irrevocable. 
 3.2 Bonus Deferrals. 
 (a) The Committee shall determine the Bonuses eligible for deferral under the Plan. Each Employee Participant shall have the right to file a separate Deferral Election to defer a portion of each eligible Bonus earned by such Participant for
any Performance Period or Retention Period commencing in the Plan Year for which the Deferral Election is made. Each Deferral Election must be made by a written or electronic notice filed with the Committee or its designate in which the Participant
shall indicate the percentage (up to one hundred percent) of the Bonus to be deferred. The notice must be filed on or before the last day of the Plan Year immediately preceding the Plan Year in which the Performance Period or Retention Period for
the Bonus subject to that election is to commence. However, the following special rules shall be in effect for any Deferral Elections with respect to such Bonuses: 
 (i) The Committee may allow a Deferral Election with respect to a Bonus which is based on a Performance Period of twelve (12) month
or more and which qualifies as performance-based compensation in accordance with the standards and requirements set forth in Section 1.409A-1(e) of the Treasury Regulations to be made by a Participant after the start of the Performance Period
to which that Bonus pertains but not later than by a designated date that is at least six (6) months prior to the end of that Performance Period; provided, however, that such Participant otherwise satisfies the applicable service
requirements of Section 1.409A-2(a)(8) of the Treasury Regulations,. Accordingly, for a Performance Period coincidental with the Company’s July 1 to June 30 fiscal year, the Committee may, in accordance with the foregoing, allow
a Deferral Election with respect to any performance-based Bonus earned over that period to be made not later than December 31 of the calendar year immediately preceding the calendar year in which that Performance Period will end. 
  

 9 

 (ii) An Eligible Employee who is first selected for participation in the Plan after the
start of a Plan Year and who has not otherwise been eligible for participation in any other non-qualified elective account balance plan subject to Code Section 409A and maintained by one or more Affiliated Companies must, with respect to any
Bonus to be covered by his or her initial Deferral Election, file that election no later than thirty (30) days after the date he or she is so selected. Such Deferral Election shall only be effective for the portion of such Bonus determined by
multiplying the dollar amount of such Bonus by a fraction, the numerator of which is the number of days remaining in the Performance or Retention Period applicable to that Bonus following the close of the calendar month in which the
Participant’s Deferral Election as to such Bonus is filed and the denominator of which is the total number of days in that Performance or Retention Period; provided, however, that in the event any such Bonus qualifies as
performance-based compensation, then the provisions of subparagraph (i) shall also be applicable in determining the amount of such Bonus that may be deferred. 
 (b) The amount of the Bonus or Bonuses deferred for each Plan Year shall be designated the “Bonus Deferral Amount” for that Plan
Year. The Bonus Deferral Amount shall not be paid to the Participant, but shall be withheld from the Participant’s Bonus or Bonuses subject to the Deferral Election, and an amount equal to the Bonus Deferral Amount shall be credited to the
Participant’s Deferral Election Subaccount within ten business day following the date on which such deferred amount would otherwise have been paid to the Participant in the absence of the Deferral Election. 
 (c) The Deferral Election shall become irrevocable as of the first day of the Plan Year to which that election relates (or any later day
the Deferral Election for such Bonus may be filed pursuant to the special provisions of Section 3.2(a)), and no subsequent changes may be made to that Deferral Election once it becomes irrevocable. 
 3.3 Requirements for Deferral Elections. The following requirements shall be in effect for each Deferral Election filed by a Participant
for a Plan Year beginning after December 31, 2007 or a Fiscal Year beginning after June 30, 2007: 
 (a) The
percentage of compensation which a Participant may elect to defer each Plan Year or Fiscal Year pursuant to his or her Deferral Election must comply with the following guidelines: 
 (i) To the extent the Participant’s salary or commissions are the subject of the Deferral Election, the amount to be deferred
pursuant to such election may be any multiple of one percent (1%) of the portion of such salary and commissions eligible for deferral for such Plan Year, but not less than five percent (5%) of such compensation. 
  

 10 

 (ii) To the extent the Participant’s Bonus is the subject of the Deferral Election,
the amount to be deferred pursuant to such election must be a multiple of five percent (5%), up to one hundred percent (100%) of the portion of such bonus eligible for deferral for such Plan Year or Fiscal Year. 
 (b) The Participant must also specify in the Deferral Election the date or event for the commencement of the distribution of the Deferral
Election Subaccount attributable to that election. The following commencement dates or events shall be permissible: 
  

	 	•	 	 a date within the first sixty (60) days of any calendar year which is at least two (2) calendar years after the calendar year to which such Deferral
Election relates, 

  

	 	•	 	 the Participant’s Separation from Service, or 

  

	 	•	 	 the earlier of (i) a date within the first sixty (60) of any calendar year which is at least two (2) calendar years after the calendar
year to which the Deferral Election relates or (ii) the Participant’s Separation from Service. 

 (c) The Participant shall also specify in the Deferral Election the manner in which the Deferral Election Subaccount attributable to that election shall be distributed. The following methods of distribution shall be permissible for a
distribution tied to a specified date: 
  

	 	•	 	 lump sum payment, or 

  

	 	•	 	 substantially equal quarterly installments (subject to periodic adjustment for Credited Investment Returns (Losses)) over a five (5)-year term.

 The following methods of distribution shall be permissible for a distribution tied to a Separation from
Service: 
  

	 	•	 	 lump sum payment, 

  

	 	•	 	 substantially equal quarterly installments (subject to periodic adjustment for Credited Investment Returns (Losses)) over a five (5)-year term, or

  

	 	•	 	 substantially equal quarterly installments (subject to periodic adjustment for Credited Investment Returns (Losses)) over a ten (10)-year term, provided,
however, that any election of such a ten (10)-year payment stream shall only be effective if the Participant’s Separation from Service is due to a Normal Termination; otherwise, such election shall automatically revert to a five
(5)-year term. 

  

 11 

 For purposes of Section 8.1, an installment distribution shall be treated as a
single aggregate payment, and not as a series of individual installment payments. 
 3.4 Limitations on Deferrals. In applying
the Participant’s Deferral Election to the salary, commissions or bonuses subject to that election, the percentage of such compensation to be deferred shall be determined based upon the Participant’s gross compensation. Any payroll
deductions to be made from the Participant’s compensation for purposes of the Company’s Employee Stock Purchase Plan (“ESPP”) shall be calculated on the basis of the Executive’s gross compensation prior to reduction for his
or her Deferral Elections under the Plan. However, prior to the start of the Plan Year for which the Deferral Election is to be in effect, the amount of Participant’s compensation available for deferral hereunder shall be calculated by reducing
Participant’s gross compensation by (a) the amount necessary to satisfy all federal, state and local income, employment and other payroll taxes (including FICA taxes) required to be withheld with respect to such items of compensation,
(b) amounts deducted with respect to the Participant’s elections regarding employee health and welfare benefits and (c) the amount of payroll deductions elected by the Participant in connection with the Company’s ESPP (such
reduced amount, the “Available Deferral Amount”). If those reductions would result in gross compensation less than the dollar amount of compensation requested to be deferred pursuant to Participant’s Deferral Election for that Plan
Year, then the actual dollar amount of compensation to be deferred pursuant to such Participant’s Deferral Election shall be reduced, effective with the start of that Plan Year, to be equal to the Available Deferral Amount. In no event,
however, may the Participant change the rate of payroll deduction in effect for him or her under the ESPP for a particular Plan Year at any time after the start of that Plan Year, if such change would otherwise affect the amount of compensation to
be deferred under this Plan pursuant to his or her Deferral Election in effect for that Plan Year. Any changes to the Participant’s elections regarding health and welfare benefits to be made after the start of the Plan Year for which his or her
Deferral Election is in effect shall be effected in accordance with the requirements of Sections 1.409A-2(a)(10) and 1.409A-3(j)(6) of the Treasury Regulations. Any salary deferral elections made by the Participant under the Company’s 401(k)
Plan shall be calculated on the basis of the Executive’s compensation after reduction for his or her Deferral Elections under the Plan. 
 3.5 Deferral Election Subaccounts. A separate Deferral Election Subaccount shall be established for each Plan Year for which the Participant defers a portion of his or her eligible compensation under the Plan. The Participant
shall at all times be fully vested in the balance credited to each of his or her Deferral Election Subaccounts. 
 3.6 Subsequent
Distribution. Each of the Participant’s Deferral Election Subaccounts shall be distributed in accordance with the provisions of Articles VII and VIII of the Plan. 
 3.7 Company Contributions. The Company may, in its sole discretion, make a Company Contribution to an Account or Subaccount on behalf of a
Participant, subject to such vesting and distribution conditions and limitations as the Company, in its sole discretion, shall impose at the time such contribution is made. 
  

 12 

 ARTICLE IV 
 CREDITED INVESTMENT RETURN (LOSS) ON DEFERRAL ACCOUNTS 
 4.1 Accounts. One or more
Accounts and Subaccounts shall be established and maintained for each Participant in accordance with the provisions of Section 1.1. Each Account or Subaccount shall be charged with any distributions made therefrom pursuant to the Plan, any
charges imposed thereon pursuant to the terms of the Plan and, with respect to the Pre-2005 Account, the cash surrender value of any Prior Policy distributed pursuant to Appendix I hereof. In addition, any Pre-2005 Account established for a
Participant was credited, as of October 1, 1997, with the ending balance (if any) accrued by that Participant under the Prior Plans. 
 4.2 Credited Investment Return (Loss). 
 (a) Each of the Participant’s Accounts and Subaccounts
shall be credited monthly with the Credited Investment Return (Loss) attributable to the balance credited to that Account or Subaccount. The Credited Investment Return (Loss) is the amount which the balance credited to the Account or Subaccount
would have earned if that balance had in fact been invested in the Deemed Investment Options in accordance with the Participant’s Investment Elections. 
 (b) The Committee shall, from time to time, designate the Deemed Investment Options. The Committee shall specify the particular funds
which shall constitute the Deemed Investment Options and may, in its sole discretion, change or add to the Deemed Investment Options; provided, however, that the Committee shall notify the Participants of any such change prior to the
effective date thereof. 
 4.3 Deemed Investment Options. Each Participant may select among the Deemed Investment Options and
specify the manner in which his or her Accounts and Subaccounts shall be deemed to be invested (the “Investment Election”) for purposes of determining the Credited Investment Return on those Accounts and Subaccounts. The Committee shall
establish and communicate the rules, procedures and deadlines for making and changing such Investment Elections. Each Participant may continue to make such Investment Election for so long as he or she has an outstanding balance credited to an
Account or Subaccount, whether or not such Participant is in Employee status or active Participant status at the time. 
 ARTICLE V 

 DISTRIBUTION OF PRE-2005 DEFERRED ACCOUNT 
 The provisions of this Article V shall apply solely to the Participant’s Pre-2005 Deferred Account for so long as that account remains exempt from the requirements of Code Section 409A by reason of
the applicable effective date of those requirements. 
 5.1 Distribution of Benefits upon Normal Termination. The
following provisions shall govern the distribution to be made with respect to a Participant who ceases Employee status through a Normal Termination: 
 (a) Unless the Participant otherwise elects pursuant to Section 5.1(b), the amount credited to his or her Pre-2005 Deferred Account (reduced by the cash surrender value of any Prior Policy distributed pursuant to
Appendix I hereof) shall be paid in sixty (60) substantially equal quarterly installments (subject to ongoing Credited Investment Returns (Losses)), with the first installment to be paid as soon as practicable following the first day of first
calendar quarter following such Normal Termination. 
  

 13 

 (b) If the Participant has filed an appropriate distribution election with the Committee
at least one (1) year prior to his or her Normal Termination, then the amount of his or her Pre-2005 Deferred Account shall be distributed in one of the following methods as the Participant may specify in that election: 
 (i) a single lump sum payment; 
 (ii) twenty (20) substantially equal (subject to ongoing Credited Investment Returns (Losses)) quarterly installments, or 
 (iii) forty (40) substantially equal (subject to ongoing Credited Investment Returns (Losses)) quarterly installments. 
 The applicable distribution shall commence as soon as practicable following the first day of the first calendar quarter following such
Normal Termination. 
 5.2 Distribution of Benefits upon Early Termination. The following provisions shall govern the
distribution to be made with respect to a Participant who ceases Employee status through an Early Termination: 
 (a) Unless
the Participant otherwise elects a different form of distribution in accordance the requirements and limitations of Section 5.2(b) or 5.2(c), the amount credited to his or her Pre-2005 Deferred Account (reduced by the cash surrender value of
any Prior Policy distributed pursuant to Appendix I) shall be distributed to the Participant in a single lump sum payment within a reasonable amount of time after such Early Termination event. 
 (b) If the Participant with an Early Termination has more than five (5) Years of Service, then he or she may file a distribution
election at least one (1) year prior to the date of such Early Termination to have the amount credited to his or her Pre-2005 Deferred Account (as adjusted pursuant to Section 5.2(a)), to the extent vested, distributed in twenty
(20) substantially equal quarterly installments (subject to ongoing Credited Investment Returns (Losses)). The elected distribution shall commence as soon as reasonably practicable following the Early Termination Event. Such election, however,
shall not be effective if the date of the Participant’s Early Termination occurs within one (1) year after the filing date of that election. 
 (c) If the Participant with an Early Termination has at least ten (10) Years of Service, then he or she may file a distribution election at least one (1) year prior to the date of such Early Termination to
have the amount credited to his or her Pre-2005 Deferred Account (as adjusted pursuant to Section 5.2(a)), to the extent vested, distributed in either twenty (20) or forty (40) substantially equal quarterly installments (subject to
ongoing Credited Investment Returns (Losses)). The elected distribution shall commence as soon as reasonably practicable following the Early Termination Event. Such election, however, shall not be effective if the date of the Participant’s
Early Termination occurs within one (1) year after the filing date of that election. 
  

 14 

 5.3 Election of Form of Benefit Payment. The Participant may file a distribution election
permitted under Section 5.1 or 5.2, above with the Committee or its designate at any time which is more than one (1) year prior to the applicable Normal Termination or Early Termination date and may revoke or change such election at any
time or times which is more than one (1) year prior to the then applicable Normal Termination or Early Termination date. Any distribution election which is filed within one (1) year of the applicable Normal Termination or Early Termination
date shall be void and without effect, and the most recently effective distribution election shall control instead. 
 5.4 Payment to
Beneficiary. In the event the Participant dies after installment payments have begun but before all of the installments are paid, the undistributed installments shall be paid to his or her Beneficiary as they become due. 
 5.5 Early Withdrawals. 
 (a) Notwithstanding any other provision of this Plan, the Participant may, upon thirty (30) days prior written notice, withdraw up to ninety-two percent (92%) of the balance credited to his or her Pre-2005 Deferred Account
determined at the time of such withdrawal. Upon such withdrawal, eight percent (8%) of the amount requested from the Participant’s Pre-2005 Deferred Account shall be forfeited, and the Participant shall have no further right thereto. The
Participant shall be prohibited from making any compensation deferrals pursuant to this Plan for the Plan Year immediately following the Plan Year in which such withdrawal occurs and for a subsequent period of months equal to the number of months
(rounded to the next whole month) that elapse between the date on which such withdrawal is effected and the last day of the Plan Year in which that withdrawal occurs. The Participant may only make a maximum of two (2) early withdrawals pursuant
to this Section 5.5(a). 
 (b) Notwithstanding any other provision of this Plan, the Participant may request to withdraw
any or all of the balance credited to his or her Pre-2005 Deferred Account in the event of a Hardship. The Committee shall, in its sole discretion, determine whether or not to approve such a withdrawal request. The Participant shall be required to
demonstrate to the Committee’s satisfaction that the financial burden imposed by the Hardship cannot reasonably be satisfied out of his or her other financial resources. Withdrawals pursuant to a Hardship request shall only be permitted, if at
all, to the extent reasonably required to satisfy the Participant’s need. 
 (c) Notwithstanding any other provision of
this Plan, Executive may schedule an in-service distribution of any portion of the balance credited to his or her Pre-2005 Deferred Account by submitting a distribution election form (or by scheduling an in-service distribution in his or her initial
enrollment election) to the Committee at least two (2) years prior to the desired distribution date. Such distribution shall be paid in a lump-sum; provided, however, that if (i) the Participant elects such form of distribution on the
distribution election or initial enrollment form and (ii) the distribution commences after five (5) or more years of service with the Company, the distribution shall be made in twenty (20) equal quarterly installments, payable on the
first day of each calendar quarter. Any Credited Investment Return (Loss) with respect to the portion of the Participant’s Pre-2005 Deferred Account scheduled for an in-service installment distribution that is to be credited on and after the
date of the initial in-service distribution shall be 

  

 15 

 
credited to the remaining portion of the Participant’s Pre-2005 Deferred Account. The Participant may postpone a scheduled in-service distribution date
by submitting a new distribution election form to the Committee at least one (1) year prior to the otherwise scheduled in-service distribution date. Any in-service distribution election form which is filed within one (1) year of the
scheduled in-service distribution date shall be void and without effect. Once an in-service installment distribution commences, such distribution shall continue over the applicable installment period, whether or not the Participant continues in
Employee status. However, if the Participant has an Early Termination or a Normal Termination prior to the first scheduled in-service distribution, then his or her in-service distribution election shall become void and without effect, and the
distribution provisions relating to such Participant’s Early or Normal Termination, as applicable, shall control the distribution of the Participant’s Pre-2005 Deferred Account. 
 5.6 Automatic Lump-Sum Distribution for Accounts below $25.000. Notwithstanding any other provisions of this Plan or the provisions of a
Participant’s distribution election with respect to his or her Pre-2005 Deferred Account, in the event such Participant has less than twenty-five thousand dollars ($25,000) credited to his or her Pre-2005 Deferred Account as of the date of his
or her cessation of Employee status, then 100% of that Account shall be distributed to him or her in a single lump-sum payment within a reasonable amount of time following the date of such cessation of Employee status. 
 5.7 Valuation. The amount to be distributed from the Participant’s Pre-2005 Deferred Account shall be determined on the basis of the
balance credited to that Account as of the most recent practicable valuation date (as determined by the Committee or its designate) preceding the date of the actual distribution. For a Participant who has elected an installment distribution from his
or her Pre-2005 Account (or any portion thereof), such distribution shall be effected through a series of substantially equal payments (as adjusted for Credited Investment Returns (Losses)), and the amount of each such installment shall accordingly
be determined by dividing the balance credited to that Account (or applicable portion) as of the most recent practicable valuation date (as determined by the Committee) preceding the date of the actual distribution of that installment by the number
of installments (including the current installment) remaining in the applicable distribution period. 
 5.8 Tax Withholding.
Each payment made from the Participant’s Pre-2005 Deferred Account shall be subject to the Participating Employer’s collection of all applicable federal, state and local income and employment/payroll taxes, and each payment shall be net of
such applicable withholding taxes. 
 5.9 Outside Directors. As applied to an Outside Director, for all purposes under the
Plan, the terms “service,” “employed” and “employment” shall mean the time during which the Outside Director serves on the Board of Directors, and the terms “retirement” and “termination” shall mean
the time at which the Outside Director ceases to serve on the Board of Directors. 
  

 16 

 ARTICLE VI 
 DISTRIBUTION OF 2005-2007 DEFERRED ACCOUNT 
 The provisions of this Article VI shall apply solely to
the Participant’s 2005-2007 Deferred Account. 
 6.1 Special Distribution Election. Each Participant may, prior to
December 31, 2007, make a new payment election under this Article VI with respect to the commencement date and form of payment to be in effect for his or her 2005-2007 Deferred Account (the “Special Distribution Election”). Any such
Special Distribution Election made by the Participant shall constitute a new payment election under Q&A 19(c) of Notice 2005-1, as modified by the Preamble to the proposed Treasury Regulations under Code Section 409A and Notice 2006-79.
However, any Special Distribution Election submitted during the 2007 calendar year can only apply to amounts not otherwise payable in that calendar year, and the election may not cause any amount to be paid in the 2007 calendar year that would not
otherwise be payable in that year. 
 6.2 Commencement Date. In the Special Distribution Election, the Participant must specify
the date or event for the commencement of the distribution of his or her 2005-2007 Deferred Account. The following commencement dates or events shall be permissible: 
  

	 	•	 	 a date within the first sixty (60) days of any calendar year after the 2008 calendar year, 

  

	 	•	 	 the Participant’s Separation from Service, or 

  

	 	•	 	 the earlier of (i) a date within the first sixty (60) days of any post-2008 calendar year or (ii) the Participant’s Separation
from Service. 

 6.3 Method of Distribution. The Participant must specify in the Special Distribution
Election the method by which his or her 2005-2007 Deferred Account shall be distributed. The following methods of distribution shall be permissible for a distribution tied to a specified date: 
  

	 	•	 	 lump sum payment, or 

  

	 	•	 	 substantially equal quarterly installments (subject to periodic adjustment for Credited Investment Returns (Losses)) over a five (5)-year term.

 The following methods of distribution shall be permissible for a distribution tied to a Separation from
Service: 
  

	 	•	 	 lump sum payment, 

  

	 	•	 	 substantially equal quarterly installments (subject to periodic adjustment for Credited Investment Returns (Losses)) over a five (5)-year term, or

  

	 	•	 	 substantially equal quarterly installments (subject to periodic adjustment for Credited Investment Returns (Losses)) over a ten (10)-year term, or

  

 17 

	 	•	 	 substantially equal quarterly installments (subject to periodic adjustment for Credited Investment Returns (Losses)) over a fifteen (15)-year term; provided,
however, that any election of such a fifteen (15)-year payment stream shall only be effective if the Participant’s Separation from Service due to a Normal Termination; otherwise, such election shall automatically revert to a ten
(10)-year term. 

 For purposes of Section 8.1, an installment distribution shall be treated as a
single aggregate payment, and not as a series of individual installment payments. 
 6.4 Continuing Elections. Should the
Participant not file a Special Distribution Election on a timely basis in accordance with Section 6.1, then each of the separate distribution elections he or she initially made with respect to the compensation deferred under the Plan for each
of the 2005, 2006 and 2007 Plan Years shall continue in full force and effect and may not be subsequently changed except in accordance with the requirements of Section 7.3 or 8.1. 
 6.5 Tax Withholding. Each payment made from the Participant’s 2005-2007 Deferred Account shall be subject to the Participating
Employer’s collection of all applicable federal, state and local income and employment/payroll taxes, and each payment shall be net of such applicable withholding taxes. 
 ARTICLE VII 
 DISTRIBUTION OF POST 2007 DEFERRAL ELECTION SUBACCOUNTS

 The provisions of this Article VII shall apply to each of the Participant’s Deferral Election Subaccounts attributable to a Plan
Year beginning after December 31, 2007 or a Fiscal Year beginning after June 30, 2007. 
 7.1 Normal Distribution.
The Participant’s Deferral Election Subaccount for a particular Plan Year or Fiscal Year shall become due and payable in accordance with the commencement date and method of distribution designated by the Participant in his or her Deferral
Election for that Plan Year or Fiscal Year. Such distribution shall begin on the designated commencement date or event as soon as administratively practicable thereafter, but in no event later than the later of (i) the close of
the calendar year in which the designated commencement date or event occurs or (ii) the fifteenth (15th) day of the third (3rd) calendar month following the occurrence of such commencement date or event. 
 7.2 Tax Withholding. Each payment made from a Deferral Election Subaccount shall be subject to the Participating Employer’s collection
of all applicable federal, state and local income and employment/payroll taxes, and each payment shall be net of such applicable withholding taxes. 
 7.3 Special Distribution Election. Notwithstanding the provisions of Sections 3.3, 6.1 and 7.1 of the Plan, each Participant may, prior to December 31, 2008, make a new payment election under this Article VII with respect
to the commencement date and form of payment to be in effect for his or her 2005-2007 Deferred Account and/or his or her Deferral Election Subaccount for the 2008 Plan Year (the “2008 Special Distribution Election”). Any such 2008 Special
Distribution Election made by the Participant shall constitute a new payment election under Q&A 19(c) of Notice 2005-1, as modified by the Preamble to the proposed Treasury 

  

 18 

 
Regulations under Code Section 409A and Notice 2006-79, and shall not be treated as an Extended Deferral Election for purposes of Section 8.1 of
the Plan. However, the 2008 Special Distribution Election can only apply to amounts not otherwise payable in that calendar year, and the election may not cause any amount to be paid in the 2008 calendar year that would not otherwise be payable in
that year. The 2008 Special Deferral Election must be made on or before December 31, 2008 in order to be effective. 
 ARTICLE VIII

 PROVISIONS APPLICABLE TO 2005-2007 ACCOUNTS AND POST-2007 DEFERRAL 
 ELECTION SUBACCOUNTS 
 The provisions of this Article VIII shall apply to the
Participant’s 2005-2007 Account and each of his or her Deferral Election Subaccounts attributable to a Plan Year beginning after December 31, 2007. Each such Account or Subaccount shall, for purposes of this Article VIII, be designated a
Post-2004 Account. 
 8.1 Extended Deferral Election. A Participant may make an Extended Deferral Election with respect
to any Post 2004 Account maintained for him or her under the Plan, provided the Participant remains at the time of such election a highly compensated Employee or member of the management group of a Participating Employer (as determined pursuant to
guidelines established by the Committee). The Extended Deferral Election must be made by filing an appropriate election form with the Committee at least twelve (12) months prior to the date the Post-2004 Account subject to such election is
scheduled to become payable pursuant to the applicable provisions of Article VI or Article VII, and the Extended Deferral Election for that Account shall in no event become effective or otherwise have any force or applicability until the expiration
of the twelve (12)-month period measured from the date such election is filed with the Committee. The Extended Deferral Election must specify a commencement date in a Plan Year which is at least five (5) Plan Years later than the Plan Year in
which the distribution of that Post-2004 Account would have otherwise been made or commenced in the absence of the Extended Deferral Election. As part of the Extended Deferral Election, the Participant may also elect a different method of
distribution, provided the selected method complies with one of the forms of distribution permissible for that Account in accordance with the provisions of the Plan. Once the Extended Deferral Election becomes effective in accordance with the
foregoing provisions of this Paragraph 8.1, such election shall remain in effect, whether or not the Participant continues in Employee status; provided, however, that in the event of the Participant’s death, the provisions of
Paragraph 8.4 shall apply. Notwithstanding anything to the contrary in the foregoing provisions of this Section 8.1, neither the Special Distribution Election under Section 6.1 nor the 2008 Special Distribution Election under
Section 7.3 shall be deemed to be an Extended Deferral Election or otherwise be subject to the requirements of this Section 8.1 
 8.2 Distribution Commencement Date. The distribution of any Post-2004 Account shall be made or commence on the distribution date or event applicable to that Account or as soon thereafter as administratively practicable, but in
no event later than the later of (i) the end of the calendar year in which that distribution date or event occurs or (ii) the fifteenth (15th) day of the third (3rd) calendar month following such distribution date or event.

  

 19 

 8.3 Hardship Withdrawal. If a Participant incurs a Hardship and does not have any other
resources available, whether through reimbursement or compensation (by insurance or otherwise), liquidation of existing assets (to the extent such liquidation would not itself result in financial hardship) or cancellation of his or her existing
Deferral Election(s) under the Plan, to satisfy such financial emergency, then the Participant may apply to the Committee Administrator for an immediate distribution from one or more of his or her Post-2004 Accounts in an amount necessary to satisfy
such Hardship and the tax liability attributable to such distribution. The Committee shall have complete discretion to accept or reject the request and shall in no event authorize a distribution in an amount in excess of that reasonably required to
meet such Hardship and the tax liability attributable to that distribution. 
 8.4 Death Before Full Distribution. If the
Participant dies before the entire aggregate balance of his or her Post-2004 Accounts is distributed, then the unpaid balance shall be paid in a lump sum to his or her designated Beneficiary under the Plan. Such payment shall be made as soon as
administratively practical following the Participant’s death, but in no event later than the later of (i) the end of the calendar year in which the Participant’s death occurs or (ii) the fifteenth (15th) day of
the third (3rd) calendar month following the date of the Participant’s death. Should the Participant die without a valid Beneficiary designation in effect or after the death of his or her designated Beneficiary, then any amounts due him or
her from his or her Post-2004 Accounts shall be paid to his or her estate. 
 8.5 Valuation. The amount to be distributed from
any Post-2004 Account shall be determined on the basis of the balance credited to that Account as of the most recent practicable valuation date (as determined by the Committee or its designate) preceding the date of the actual distribution. For a
Participant who has elected an installment distribution for any Post-2004 Account, such distribution shall be effected through a series of substantially equal payments (as adjusted for Credited Investment Returns (Losses)), and the amount of each
such installment shall accordingly be determined by dividing the balance credited to that Account as of the most recent practicable valuation date (as determined by the Committee) preceding the date of the actual distribution of that installment by
the number of installments (including the current installment) remaining in the applicable distribution period. 
 8.6 Small Account
Balances. 
 (a) If the aggregate balance of the Participant’s Post-2004 Accounts is not greater than the
applicable dollar amount in effect under Code Section 402(g)(1)(B) at the time of the Participant’s Separation from Service and the Participant is not otherwise at that time participating in any other non-qualified elective account balance
plan subject to Code Section 409A and maintained by one or more Affiliated Companies, then that balance shall be distributed to the Participant in a lump sum distribution as soon as administratively practical following such Separation from
Service, whether or not the Participant elected that form of distribution or distribution event, but in no event later than the later of (i) the end of the calendar year in which such Separation from Service occurs or
(ii) the fifteenth (15th) day of the third (3rd) calendar month following the date of such Separation from Service. 
  

 20 

 (b) If the Participant is receiving one or more installment distributions from his or her
Post-2004 Accounts following his or her Separation from Service and the aggregate present value of all the remaining unpaid installments is at any time during the installment period less than Fifty Thousand Dollars ($50,000), then those remaining
installments shall be paid in a lump sum within thirty (30) days thereafter. 
 8.7 Mandatory Deferral of Distribution.
Notwithstanding any provision to the contrary in this Article VIII or any other article in the Plan, no distribution which becomes due and payable from any of the Participant’s Post-2004 Accounts by reason of his or her Separation from
Service shall be made to such Participant prior to the earlier of (i) the first day of the seventh (7th) month following the date of such Separation from Service or (ii) the date of his or her death, if the Participant
is deemed at the time of such Separation from Service to be a Specified Employee and such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2). Upon the expiration of
such deferral period, all payments deferred pursuant to this Section 8.7 (whether they would have otherwise been payable in a single sum or in installments in the absence of such deferral) shall be paid in a lump sum to the Participant, and any
remaining payments due under the Plan shall be paid in accordance with the normal payment dates specified for them herein. During such deferral period, the Participant’s Account shall continue to be subject to the investment return provisions
of Article IV. 
 ARTICLE IX 
 BENEFICIARIES 
 9.1 Designation of Beneficiary. Executive shall have the right to designate on such form as
may be prescribed by the Committee a Beneficiary to receive any Supplemental Executive Benefits due to the Participant’s deferrals of compensation under the Plan which remains unpaid at the time of his or her death. The Participant shall have
the right at any time to revoke such designation and to substitute another such Beneficiary. 
 9.2 No Designated Beneficiary.
If, upon the Participant’s death, there is no valid designation of Beneficiary, the Beneficiary shall be the Participant’s estate. 
 ARTICLE X 
 OBLIGATION TO PAY SUPPLEMENTAL EXECUTIVE BENEFITS 
 10.1 Benefits Paid From Trust. All benefits payable to the Participant hereunder shall be paid by the Trustee, to the extent of the assets
held in the Trust by the Trustee, and by the Company to the extent the assets in the Trust are insufficient to pay the Participant the Supplemental Executive Benefits to which he or she is entitled under this Plan. 
 10.2 Trustee Investment Discretion. The Deemed Investment Options shall be for the sole purpose of determining the Credited Investment
Return (Loss), and neither the Trustee nor the Company shall have any obligation to invest the Participant’s Deferral Amounts in the Deemed Investment Options or in any other investment. 
  

 21 

 10.3 No Secured Interest. Except as otherwise provided by the Trust Agreement, the assets
of the Trust shall be subject to the claims of creditors of the Company, and no Participant or Beneficiary shall have any legal or equitable interest in such assets or policies or any other asset of the Company. The Participant shall be a general
unsecured creditor of the Company with respect to the promises of the Company made herein, except as otherwise expressly provided by the Trust Agreement. 
 ARTICLE XI 
 ADMINISTRATION 
 11.1 Administration of the Plan. The Plan shall be administered by the Committee. The Committee shall have full power and discretionary
authority to administer, construe and interpret the Plan, to establish procedures for administering the Plan, to prescribe forms, and take any and all necessary or desirable actions in connection with the Plan. The Committee’s interpretation
and construction of the Plan shall be conclusive and binding on all persons having an interest in the Plan, including (without limitation) all decisions relating to an individual’s eligibility for participation in the Plan, his or her
entitlement to benefits hereunder and the amount of any such benefit entitlement. The Committee may appoint a Committee or any other agent and delegate to them such powers and duties in connection with the administration of the Plan as the Committee
may from time to time prescribe. 
 11.2 Indemnification. The Committee and each of its members shall be indemnified by the
Company against any and all liabilities incurred by reason of any action taken in good faith pursuant to the provisions of the Plan. 
 ARTICLE XII 
 MISCELLANEOUS 
 12.1 No Employment Right. Neither the action of the Company or the Participating Employer in establishing or maintaining the Plan, nor any action taken under the Plan by the Committee, nor any provision
of the Plan itself shall be construed so as to grant any person the right to remain in the employ of the Participating Employer or any other Affiliated Company for any period of specific duration, and the Participant may be discharged at any time,
with or without cause. 
 12.2 Amendment/Termination. 
 (a) The Committee may at any time amend the provisions of the Plan to any extent and in any manner the Committee may deem advisable, and
such amendment shall become effective at the time of such Committee action. Without limiting the generality of the foregoing, the Committee may amend the Plan to impose such restrictions upon (i) the timing, filing and effectiveness of Deferral
Elections or Extended Deferral Elections and (ii) the distribution provisions of the Plan which the Committee deems appropriate or advisable in order to avoid the current income taxation of amounts deferred under the Plan which might otherwise
occur as a result of changes to the tax laws and regulations governing deferred compensation arrangements such as the Plan. The Committee may also at any time terminate the Plan in whole or in part. Except for (i) such modifications,
limitations or restrictions as may otherwise be 

  

 22 

 
required to avoid current income taxation or other adverse tax consequences to Participants as a result of changes to the tax laws and regulations applicable
to the Plan or (ii) as otherwise provided in Sections 12.2 (b), (c) and (d) below with respect to the distribution of Participant Accounts, no such plan amendment or plan termination authorized by the Committee shall adversely affect
the benefits of Participants accrued to date under the Plan or otherwise reduce the then outstanding balances credited to their Accounts or Deferral Election Subaccounts or otherwise adversely affect the distribution provisions in effect for those
Accounts or Subaccounts, and all amounts deferred prior to the date of any such plan amendment or termination shall, subject to the foregoing exception, continue to become due and payable in accordance with the distribution provisions of the Plan as
in effect immediately prior to such amendment or termination. 
 (b) Except as otherwise provided in Sections 12.2(c) and
(d) below, in the event of a termination of the Plan, the Participant Accounts may, in the Company’s discretion, be distributed within the period beginning twelve (12) months after the date the Plan is terminated and ending
twenty-four (24) months after the date of such plan termination, or pursuant to Articles VI, VII and VIII of the Plan, if earlier. If the Plan is terminated and Accounts are distributed, the Company and the other Participating Employers shall
also terminate and liquidate all other non-qualified elective account balance deferred compensation plans maintained by them and shall not adopt a new non-qualified elective account balance deferred compensation plan for at least three
(3) years after the date the Plan is terminated. 
 (c) The Company and the other Participating Employers may terminate
the Plan thirty (30) days prior to or within twelve (12) months following a Change of Control and distribute, within the twelve (12)-month period following the termination of the Plan, the Accounts of the Participants affected by such
Change in Control If the Plan is terminated and Accounts are distributed, the Company and the other Participating Employers shall also terminate all other non-qualified elective account balance deferred compensation plans sponsored by them in which
such Participants participate, and all of the benefits accrued under those terminated plans by such Participants shall be distributed to them within twelve (12) months following the termination of such plans. 
 (d) The Company may terminate the Plan upon a corporate dissolution of the Company that is taxed under Section 331 of the Code or
with the approval of a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1)(A), provided that the Participant Accounts are distributed and included in the gross income of the Participants by the later of (i) the Plan Year in which the
Plan terminates or (ii) the first Plan Year in which payment of the Accounts is administratively practicable. 
 (e)
Notwithstanding the foregoing provisions of this Section 12.2 or any other provision in this Plan to the contrary, should the Plan be terminated, then all benefits attributable to the Participant’s Pre-2005 Deferred Account shall be paid
pursuant to the provisions of Section 5.2 as if such Participant had voluntarily ceased Employee status on the date of such Plan termination. 
 (f) All amounts remaining in the Trust after all benefits have been paid in connection with the termination of the Plan shall revert to the Company. 
  

 23 

 12.3 Applicable Law. The Plan is intended to constitute an unfunded deferred compensation
arrangement for a select group of management and other highly compensated persons, and all rights hereunder shall be construed, administered and governed in all respects in accordance with the provisions of the Employee Retirement Income Security
Act of 1974 (as amended from time to time) applicable to such an arrangement and, to the extent not pre-empted thereby, by the laws of the State of California without resort to its conflict-of-laws provisions. If any provision of this Plan shall be
held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of the Plan shall continue in full force and effect. 
 12.4 Satisfaction of Claims. Any payment made to a Participant or his or her legal representative or beneficiary in accordance with the terms of this Plan shall to the extent thereof be in full
satisfaction of all claims with respect to that payment which such person may have against the Plan, the Committee (or its designate), the Company, the Participating Employer and all other Affiliated Companies, any of whom may require the
Participant or his or her legal representative or Beneficiary, as a condition precedent to such payment, to execute a receipt and release in such form as shall be determined by the Committee. 
 12.5 Alienation of Benefits. No person entitled to any benefits under the Plan shall have the right to alienate, pledge, hypothecate or
otherwise encumber his or her interest in such benefits, and those benefits shall not, to the maximum extent permissible by law, be subject to claim of his or her creditors or liable to attachment, execution or other process of law. Notwithstanding
the foregoing, any benefits otherwise due and payable to the Participant shall instead be distributed to one or more third parties (including, without limitation, the Participant’s former spouse) to the extent such distribution is required by a
domestic relations order or other order or directive of a court with jurisdiction over the Participant and his or her benefits hereunder, and the Participant shall cease to have any right, interest or entitlement to any benefits to be distributed
pursuant to such order or directive. 
 12.6 Expenses. The Accounts and Subaccounts of each Participant shall be charged with
its allocable share of all other costs and expenses incurred in the operation and administration of the Plan, except to the extent one or more Participating Employers elect in their sole discretion to pay all or a portion of those costs and
expenses. 
 12.7 Successors and Assigns. The obligation of each Participating Employer to make the payments required hereunder
shall be binding upon the successors and assigns of that Participating Employer, whether by merger, consolidation, acquisition or other reorganization. Except for such modifications, limitations or restrictions as may otherwise be required to avoid
current income taxation or other adverse tax consequences to Participants as a result of changes to the tax laws and regulations applicable to the Plan, no amendment or termination of the Plan by any such successor or assign shall adversely affect
or otherwise impair the rights of Participants to receive benefit payments hereunder, to the extent attributable to amounts deferred prior to the date of such amendment or termination, in accordance with the applicable distribution provisions of the
Plan as in effect immediately prior to such amendment or termination. 
  

 24 

 12.8 Reimbursement of Costs. If the Company, the Participant, any Beneficiary or a
successor in interest to any of the foregoing brings legal action to enforce any of the provisions of this Plan, the prevailing party in such legal action shall be entitled to reimbursed by the other party for the prevailing party’s costs of
such legal action, including (without limitation) reasonable fees of attorneys, accountants and similar advisors and expert witnesses. 
 12.9 Arbitration. Any dispute or claim relating to or arising from the Plan that cannot be resolved within thirty (30) days of the dispute or controversy through good-faith negotiation or non-binding mediation between the
Participant and the Company shall be subject to binding arbitration in Santa Clara, California before the American Arbitration Association under its National Rules for the Resolution of Employment Disputes, supplemented by the California Rules of
Civil Procedure. The Company and the Participant shall each bear their own respective costs and attorneys’ fees incurred in connection with the arbitration; and the Company shall pay the arbitrator’s fees, unless law applicable at the time
of the arbitration hearing requires otherwise. The arbitrator shall issue a written decision that sets forth the essential findings of fact and conclusions of law on which the award is based. The arbitrator’s decision shall be final and binding
to the fullest extent permitted by law and enforceable by any court having jurisdiction thereof. 
 12.10 Entire Agreement.
This Plan and any applicable deferral election and beneficiary forms constitute the entire understanding and agreement with respect to the Plan, and there are no agreements, understandings, restrictions, representations or warranties among the
Participant, the Company and the Participating Employers other than those as set forth or provided for therein. 
 ARTICLE XIII

 BENEFIT CLAIMS 
 13.1 Claims Procedure. No application is required for the payment of benefits under the Plan. However, if any Participant (or beneficiary) believes he or she is entitled to a benefit from the Plan which differs from the
benefit determined by the Committee, then such individual may file a written claim for benefits with the Committee. Each claim shall be acted upon and approved or disapproved within ninety (90) days following receipt by the Committee.

 13.2 Denial of Benefits. In the event any claim for benefits is denied, in whole or in part, the Committee shall notify the
claimant in writing of such denial and of his or her right to a review by the Committee and shall set forth, in a manner calculated to be understood by the claimant, specific reasons for such denial, specific references to pertinent provisions of
the Plan on which the denial is based, a description of any additional material or information necessary to perfect the claim, an explanation of why such material or information is necessary, and an explanation of the review procedure. 

 

 25 

 13.3 Review. 
 (a) Any person whose claim for benefits is denied in whole or in part may appeal to the Committee for a full and fair review of the
decision by submitting to the Committee, within ninety (90) days after receiving written notice from the Committee of such denial, a written statement: 
 (i) requesting a review by the Committee of his or her claim for benefits; 
 (ii) setting forth all of the grounds upon which the request for review is based and any facts in support thereof; and 
 (iii) setting forth any issues or comments which the claimant deems pertinent to his or her claim. 
 (b) The Committee shall act upon each such appeal within sixty (60) days after receipt of the claimant’s request for review by
the Committee, unless special circumstances require an extension of time for processing. If such an extension is required, written notice of the extension shall be furnished to the claimant within the initial sixty (60)-day period, and a decision
shall be rendered as soon as possible, but not later than one hundred twenty (120) days after receipt of the initial request for review. The Committee shall make a full and fair review of each such appeal and any written materials submitted by
the claimant or the Participating Employer in connection therewith and may require the Participating Employer or the claimant to submit such additional facts, documents or other evidence as the Committee may, in its sole discretion, deem necessary
or advisable in making such a review. On the basis of its review, the Committee shall make an independent determination of the claimant’s eligibility for benefits under the Plan. The decision of the Committee on any benefit claim shall be final
and conclusive upon all persons. 
 13.4 Denial of Appeal. Should the Committee deny an appeal in whole or in part, the
Committee shall give written notice of such decision to the claimant, setting forth in a manner calculated to be understood by the claimant the specific reasons for such denial and specific reference to the pertinent Plan provisions on which the
decision was based. 
 IN WITNESS WHEREOF, the Company has caused this amended and restated Plan to be executed by a duly authorized
officer effective as of the Effective Date. 
  

			
	KLA-TENCOR CORPORATION
		
	By:	 	/s/ BRIAN M. MARTIN
	Name:	 	Brian M. Martin
	Title:	 	Senior Vice President and General Counsel
	
	Dated: December 19, 2008 

  

 26 

 APPENDIX I 
 GRANDFATHERED PROVISIONS FOR CERTAIN PRIOR PLAN PARTICIPANTS 
 ARTICLE I 
 OLD KLA PLAN LIFE INSURANCE POLICY ELECTIONS 
 1.1 Rights to Prior Policy. A Participant who timely made a “Prior Policy Election” (as such term was defined in the Old KLA Plan) in accordance with the terms and conditions of the Old KLA Plan (a “Prior Policy
Executive”) shall continue to have the life insurance premiums for the “Prior Policy” (as such term was defined in the Old KLA Plan) paid by the Company, subject to termination or distribution of the Prior Policy pursuant to the
provisions of this Article I of Appendix I, and 
 (a) The Prior Policy Executive may designate in writing to the Company, on
such forms as the Committee shall specify, the beneficiary to receive death benefits payable under the Prior Policy; provided, however, that the maximum amount of death benefits under the-Prior Policy which may be paid to the Prior Policy
Executive’s beneficiary is the amount of death benefit specified on the September 30, 1994 Participant Statement of benefits for the Prior Policy Executive (the “Prior Policy Death Benefit”), and 
 (b) The Prior Policy Executive may elect to have the Prior Policy distributed to him in kind in accordance with Section 1.4 below.

 1.2 Payment of Premiums. All Prior Policy Executives must pay to the Company, on an after-tax basis, their Prior Policy Premium.
The Prior Policy Premium shall be equal to the one-year term insurance rates for the Prior Policy Death Benefit as set forth in the PS-58 Rate Table contained in Rev. Rul. 55-747. In the event a Prior Policy Executive fails to pay the Prior Policy
Premium to the Company by the last day of the relevant Plan Year, all rights of the Prior Policy Executive and his beneficiary to the Prior Policy shall terminate. 
 1.3 Payment of Death Benefit. If the Prior Policy Executive dies prior to his Benefit Distribution Commencement Date, his or her Prior Policy Death Benefit shall be paid to the Prior Policy Executive’s
properly designated beneficiary in accordance with the terms and conditions of the Prior Policy. The payment of the Prior Policy Death Benefit shall be in addition to any other Plan benefits which may be payable upon the Executive’s death. Any
proceeds payable under the Prior Policy in excess of the Prior Policy Death Benefit shall be paid to the Trustee and shall be used to help defray the Company’s expenses for administering the Plan. 
 1.4 Distribution of Prior Policy. If (i) a Prior Policy Executive’s Supplemental Executive Benefits become payable upon a Normal
Termination or an Early Termination pursuant to Plan Sections 5.1 or 5.2, or if the Plan terminates, and (ii) the value of his or her Deferral Account on the date of the Early Termination Event, Termination Event or termination of the Plan, as
the case may be (the “In Kind Event Date”), equals or exceeds the cash surrender value of the Prior Policy as determined by the Committee, in its discretion, as of the In Kind Event Date (the “Cash Surrender Value”), then the
Prior Policy Executive’s election, by means of a writing to the Company prior to the In Kind Event Date, to have the Trust distribute the Prior Policy to him or her, in kind, shall become effective, 
 (a) If the Prior Policy Executive’s election becomes effective, the Prior Policy shall be distributed within a reasonable time after
the In Kind Event Date and Executive’s Deferral Account shall be reduced by the Cash Surrender Value; 

 (b) Upon the distribution of the Prior Policy, the Company shall have no further
responsibility for the payment of any premiums related to the Prior Policy on or after the date on which the Prior Policy is distributed to the Executive. If the Executive does not elect to have the Prior Policy distributed, or if such election is
made and does not become effective, then the Executive and his beneficiary shall have no further rights with respect to the Prior Policy after the In Kind Event Date; and 
 (c) Prior to the in kind distribution of a Prior Policy to Executive, or at any time thereafter as requested by the Company, Executive
agrees to authorize withholding from any other amounts payable to Executive pursuant to the Plan, and shall otherwise make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the
Company, if any, which arise in connection with the in kind distribution of the Prior Policy, and the Company shall not be required to distribute the Prior Policy unless and until the Executive has made adequate provision for such withholding
obligations, with such adequacy to be determined by the Committee in its sole discretion. 
 ARTICLE II 
 OLD KLA PLAN PRE-DISTRIBUTION DEATH BENEFITS 
 2.1 Pre-Distribution Death Benefits. If, prior to October 31, 1997 a Participant had elected a Pre-Distribution Death Benefit pursuant to and in accordance with the terms and conditions of the Old KLA Plan (a
“Pre-Distribution Death Benefit Executive”), then such election shall remain in effect with respect to the Pre-Distribution Death Benefit Executive’s Deferral Account under the Plan; provided, however, that the Credited Investment
Return (Loss) determined under Plan Section 4.2 shall be decreased (increased) by one percent (1%) per annum for the period during which such Pre-Distribution Death Benefit Election remains in effect. 
 2.2 Revocation of Pre-Distribution Death Benefit. Each Pre-Distribution Death Benefit Executive may elect to revoke a Pre-Distribution Death
Benefit by means of a writing to the Company that is acceptable to the Committee, in its sole discretion_ Upon the effectiveness of such revocation, the Pre-Distribution Death Benefit Executive’s Credited Investment Return (Loss) relating to
his or her Deferral Account shall thereafter cease to be decreased (increased) by one percent (1%); provided, however, that such revocation shall not affect any decreases or increases to the Credited Investment Return that were made prior to the
effective date of such revocation. Once a written revocation has been submitted to the Company, it may not thereafter be revoked or modified in any manner. 
 2.3 Automatic Termination of Pre-Distribution Death Benefit. Any Pre-Distribution Death Benefit Election shall automatically terminate upon the Pre-Distribution Death Benefit Executive’s Benefit
Distribution Commencement Date: Upon the Benefit Distribution Commencement Date, the Pre-Distribution Death Benefit Executive’s Credited Investment Return (Loss) relating to his or her Deferral Account shall thereafter cease to be decreased
(increased) by one percent (1%); provided, however, that such revocation shall not affect any decreases or increases to the Credited Investment Return that were made prior to the Benefit Distribution Commencement Date. 
  

 2 

 2.4 Amount Payable Upon Death. Upon the Pre-Distribution Death Benefit Executive’s death
prior to his or her Benefit Distribution Commencement Date: 
 (a) if the Pre-Distribution Death Benefit Executive has a
currently effective election to receive the Pre-Distribution Death Benefit, then instead of receiving the value of his or her Deferral Account, his or her designated beneficiary shall be entitled to a Pre-Distribution Death Benefit equal to the
greater of (i) or (ii) below: 
 (i) his or her Deferral Amounts which were made within 12 months from the date he
or she commenced participation in the Plan and were credited to his or her Deferral Account prior to the date of his or her death, multiplied by 10; or 
 (ii) the value of his or her Deferral Account determined as of the date of such the Pre-Distribution Death Benefit Executive’s death multiplied by: 
 (A) 2.0, if Executive is less than 56 years of age on the date of death; or 
 (B) 1.5, if Executive is age 56 years or older on the date of death. 
 (b) If Executive does not have an election to receive a Pre-Distribution Death Benefit in effect on the date of his or her death, then the
deceased Executive’s death benefit shall be an amount equal to the amount credited to his or her Deferral Account, determined as of the date of death. 
 (c) Any benefit payable upon Executive’s death under this Section 2 of Appendix I shall be paid to Executive’s Beneficiary in a single lump sum payment on the first day of the month following the end of
the quarter in which the Executive’s death occurred. 
 (d) The death benefit payable under this Section 2 of
Appendix I shall be independent of any Prior Policy Death Benefit which may be paid pursuant to Section 1 of Appendix I to the Beneficiary of a Prior Policy Executive. 
 ARTICLE III 
 PRIOR PLAN DISTRIBUTIONS IN PAYOUT STATUS 
 3.1 Prior Plan Participants in Payout Status. Participants in the Old Plans who are in payout status and are no longer eligible to make
compensation deferrals into the Plan shall have their Deferral Accounts paid out and credited consistently with the terms and conditions of the Old Plans and such Participants’ elections thereunder as in effect immediately prior to the
Effective Date. 
  

 3 

 ARTICLE IV 
 PRIOR PLAN DISTRIBUTION ELECTIONS 
 4.1 Prior Plan Distribution Elections. Distribution
elections made by Prior Plan participants prior to the Effective Date shall remain in full force and effect unless changed consistently with the provisions of the Plan. 
  

 4 

 SCHEDULE I 
 LIST OF PARTICIPATING EMPLOYERS AS OF OCTOBER 1, 2008 
 KLA-Tencor Corporation 
 KLA-Tencor Technologies Corporation 
 VLSI
Standards, Inc. 
 ADE Technologies, Inc.

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