<PAGE>
Wallace E. Breitman
Sr. Vice President, Human Resources
Telephone: 858-385-6521
Fax: 858-385-6061
E-mail: [email protected]
May 4, 2000
Brian C. Klene
72 Farrer Road
Belmont #05-04, Gallop Gables
Singapore 268851
Dear Brian:
It is my pleasure to offer you the position of Senior Vice President,
Marketing and Business Development, for Cymer, Inc. This position reports to
the President, Cymer, Inc. Cymer's dynamic environment will offer you both
challenges and opportunities. All who have met you are very impressed with
your qualifications and potential, and believe you can make a significant
contribution to our future success. The specific terms of our offer to you
are:
BASE SALARY: Your initial base salary will be $8,269.23 bi-weekly,
the equivalent of $215,000.00 per year. You will receive
a performance-based merit review in January of each year.
START DATE: We would like you to begin work on as soon as possible,
on a date mutually agreed upon by you and the President.
SIGN-ON BONUS: You will be granted a Sign-on bonus of $100,000.00 net.
This bonus will be paid to you in your first regular
paycheck. In the event your employment terminates within
one year of your start date, you will be required to
repay the prorated bonus amount.
INCENTIVE BONUS: You will be eligible to participate in the Cymer 2000
Executive Incentive Bonus Plan. Your annual target bonus
will be 80.0% of your base salary. The bonus parameters
are: 33.3% is based on the company achieving its annual
net profit target; 33.3% is based on the company
achieving its annual revenue target; and 33.3% is based
on your achieving specific MBOs to be determined between
you and the president after you begin work. Your year
2000 bonus payments will be based on your actual base
payroll. In addition, you will be eligible for a 5.0%
Profit Sharing Bonus if the Company achieves its 2000
revenue and operating profit targets. Both Bonus and
Profit Sharing, if paid, will be based on your actual
2000 Cymer base payroll.
STOCK OPTION: Subject to the approval of the Compensation Committee of
the Board of Directors, you will be granted the approval
to acquire 150,000 shares of Cymer Common Stock in
accordance with the Company's 1996 Stock Option Plan.
The request will be presented to the Committee for
action at its first regular meeting after you have
become an employee of the Company. The exercise price of
the option will be the closing market price on the date
you join Cymer. Vesting of your options will be as
follows:
a) 35,000 options will be 100% vested at the close of
your first day of employment;
b) 15,000 options will be 100% vested after three (3)
months of employment;
c) 100,000 shares will vest per the Company's normal
vesting schedule over four years, twenty-five percent
vesting after one year of service, and one forty-eighth
(1/48) vesting monthly thereafter.
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<PAGE>
Wallace E. Breitman
Sr. Vice President, Human Resources
Telephone: 858-385-6521
Fax: 858-385-6061
E-mail: [email protected]
RELOCATION: We recognize that your move to San Diego will require
some effort and expense. To help offset these
expenditures, you will be paid a net Relocation Bonus of
up to two months base salary, to be paid not later than
the end of your first week of work. A Taxability of
Moving Expense Reimbursements summary has been enclosed
for your assistance. In the event that you voluntarily
terminate your employment with CYMER within one year of
your date of hire, you will be required to repay the
prorated amount of your relocation benefit. In addition
to your relocation bonus, the following relocation
benefits will be paid by Cymer in order to assist in
your move to San Diego:
- One (1) house-hunting trip for you and your family
from Singapore to San Diego for up to seven (7) days.
The Company will pay for round-trip coach air-fare,
hotel accommodations, and a rental car. Please contact
Tammy Tistle at (858) 385-6587 for assistance in
making these reservations.
- Temporary housing in a corporate apartment or similar
accommodations, of Cymer's choice, for a period no
longer than ninety (90) days.
- Actual costs of packing, transportation, unpacking,
insurance, and storage for up to 90 days, of your
normal household goods and personal effects, not to
exceed 18,000 pounds total, from Singapore to San
Diego, and/or from Boise, Idaho or similar location.
The bulk of this shipment will be made by surface
transportation. For air shipment you will be
permitted a limit of one "LDN" 94.5 cubic foot
container for yourself and one "D" 63.5 cubic foot
container each for your wife and children.
- Items not covered under this offer with regard to
shipping are boats, planes, ski mobiles and other
recreational vehicles, aquariums, articles of
extraordinary value (jewelry, furs, precious stones,
stamp or coin collections, wills, stocks, etc.),
firearms, ammunition, combustibles, playground
equipment or items of a similar nature.
- The Company will reimburse you up to $300 for
shipment of household pets from Singapore to San
Diego. Shipping/importation arrangements and
boarding/quarantine costs will be your responsibility.
- Any duty or customs fees imposed on normal household
goods, including those acquired by you in Singapore,
will be reimbursed by the Company. Customs duties
assessed on expensive furs, clothing, trademark items
and non-approved high value items will be your
responsibility.
- One-way coach air travel for you and your family from
Singapore to San Diego, California when you begin
work at Cymer.
Ms. Kirsten Gilbert, 858-385-6512, will help you
coordinate your relocation to San Diego, including
coordinating with the moving company, travel, and
temporary accommodations.
OTHER: You will be eligible for coverage under the Company's
Group Health Plans on the first day of your employment.
Page 2 of 3
<PAGE>
Wallace E. Breitman
Sr. Vice President, Human Resources
Telephone: 858-385-6521
Fax: 858-385-6061
E-mail: [email protected]
You will be eligible to enroll in the Company's 401(k)
Retirement Plan on the first of the month following
completion of 30 days of service.
As a member of senior management, you will not accrue
either vacation or sick leave. You may take vacation
time and sick leave as needed and appropriate, based on
the requirements of your job and the approval of your
manager.
We have enclosed details of our benefits package for
your review.
Cymer employees are hired and work as employees-at-will, and we expect you to
comply with our standard conditions of employment such as entering into a
proprietary rights and confidentiality agreement, and providing the necessary
proof of citizenship or other status that enables the Company to legally
employ you. For the safety of our company and the security of our
technologies, all prospective employees are subject to a background check,
which may or may not be completed before you start work at Cymer. Employment,
or continued employment, with Cymer is contingent on satisfactory results of
this investigation.
I hope you will decide to join the Cymer team, as our success is derived from
the people who work here. You may accept this offer by signing below,
indicating your anticipated start date, and returning one copy of this letter
to me in the enclosed envelope. We will expect a reply from you no later than
May 12, 2000, after which we will consider this offer closed. Please retain
the extra original of this letter for your personal records.
We ask that your start date be on a Monday; this will allow us to participate
in the regular Employee Orientation Program and begin your new-hire
paperwork. Please report to our administration building (CS-1) at 16750 Via
Del Campo Court at 8:00 am and bring this entire packet of information (with
all necessary forms completed) with you. Directions to this building have
been enclosed for your use. Should you have any questions, please contact me
at 858-385-6521.
Sincerely,
Wallace E. Breitman
Sr. Vice President, Human Resources
I accept Cymer's offer of employment:
/s/ BRIAN C. KLENE May 8, 2000
--------------------------- ------------------------
Brian C. Klene Date Signed
Signature
As soon as possible
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Expected Start Date
June 12, 2000
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Employment Start Date
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