2005 Management Incentive Bonus Program Agreement for MKS Instruments, Inc.

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines the 2005 Management Incentive Bonus Program for select executives of MKS Instruments, Inc. It specifies that eligible participants can earn a bonus based on a percentage of their base earnings, with the actual payout determined by the company's pro forma pre-tax earnings per share (EPS) for the year. The agreement details the target bonus percentages for each executive and explains how bonus amounts increase as EPS targets are met or exceeded. The information is confidential and intended only for the named recipients.

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EX-10.1 2 b53308mkexv10w1.txt EX-10.1 2005 MANAGEMENT INCENTIVE BONUS PROGRAM OF MKS INSTRUMENTS, INC. EXHIBIT 10.1 Confidential Materials omitted and filed separately with the Securities and Exchange Commission. Asterisks denote omissions. PERSONAL AND CONFIDENTIAL 2005 MKS MANAGEMENT INCENTIVE PROGRAM [FORM OF] PRO FORMA PRE-TAX EARNINGS PER SHARE (EPS) TABLE (JANUARY 1 - DECEMBER 31) YOUR TARGET BONUS UNDER THE 2005 MKS MANAGEMENT INCENTIVE PLAN IS ___%(1) OF YOUR BASE EARNINGS. THE PAYOUT OF YOUR BONUS WILL BE ACHIEVED ACCORDING TO THE SCHEDULE SHOWN IN THE CHART BELOW. FOR EXAMPLE, YOU WILL RECEIVE 50% OF YOUR TARGET BONUS IF OUR PRO FORMA PRE-TAX EPS REACHES $**, AND 100% OF YOUR TARGET BONUS IF OUR PRO FORMA PRE-TAX EPS REACHES $**. AT A PRO FORMA PRE-TAX EPS OF $** OR MORE, YOU WOULD RECEIVE 200% OF YOUR TARGET BONUS, WHICH WOULD RESULT IN THE PAYMENT OF A BONUS EQUAL TO ___%(2) OF YOUR 2005 BASE MKS EARNINGS.
Pro forma % of Target Pre-Tax EPS Bonus Earned - ----------- ------------ <=$** 0.0% $** 15.0% $** 25.0% $** 35.0% $** 50.0% $** 60.0% $** 75.0% $** 85.0% $** 100.0% $** 125.0% $** 150.0% $** 175.0% >=$** 200%
- -------- (1) Target bonus for John Bertucci is 75% of base earnings; for Leo Berlinghieri it is 60% of base earnings; for Jerry Colella and John A. Smith it is 50% of base earnings; for Robert Klimm, Ronald Weigner, William Stewart it is 40% of base earnings. (2) This number is double the number set forth in the paragraph above with respect to each of the executive officers. THIS INFORMATION IS EXTREMELY CONFIDENTIAL AND SHOULD BE TREATED AS SUCH. YOU SHOULD NOT DIVULGE THIS INFORMATION INSIDE OR OUTSIDE OF MKS INSTRUMENTS, INC.