Exhibit 99.1
February 22, 2005
John Shin 3804 Modena Place San Diego, CA 92130
Re:
Separation Agreement: SETTLEMENT AGREEMENT AND MUTUAL
RELEASE
Dear John:
This letter sets forth the terms and conditions of our agreement (the “Agreement”) regarding your employment with Cymer, Inc. (the “Company”). The Company and you have mutually agreed to terminate the employment relationship and to release each other from any claims arising from or related to the employment relationship. This Agreement shall become effective on the “Effective Date” as defined in Section 12. You and the Company hereby agree as follows:
Separation Date. Your employment with the Company was terminated effective December 15, 2004 (the “Separation Date”). You have been paid all accrued salary, and all accrued and unused vacation benefits earned through the Separation Date, if any, subject to standard payroll deductions, withholding taxes and other obligations. You are entitled to this payment regardless of whether or not you sign this Agreement.
1.
Severance. In exchange for the promises and covenants set forth herein, and in consideration thereof, the Company will provide you with severance benefits as follows:
2.
Your base salary in effect as of the Separation Date ($240,000 per annum) will continue to be paid to you for a period of one (1) year following the Separation Date, said payments to be made on the Company’s standard payroll dates and in accordance with the Company’s standard payroll practices, less standard payroll deductions and withholdings. In the event your death occurs within one (1) year following the Separation Date, the Company shall immediately pay to you and/or your heirs the remainder of your base salary pursuant to this Section 2(a);
(a)
You shall receive a monthly payment of three thousand six hundred dollars ($3,600.00) as a housing and car allowance/reimbursement until the earlier of: i) the relocation of your principal residence to a point outside San Diego County, California, or ii) the termination, expiration, or revocation of, or your material breach of, the Consulting Services Agreement attached hereto as Exhibit A, provided that you shall include this allowance in the monthly consulting fee invoice you submit to the Company;
(b)
In lieu of a bonus, you shall receive a lump sum payment of $121,846.15, less standard deductions and withholdings, to be paid no later than five (5) business days after the
(c)
John Shin February 22, 2005
Effective Date of this Agreement. No portion or amount of this severance nor any other benefit provided by this Agreement shall be paid until after the Effective Date of this Agreement; and
The Company will provide you, upon your written request made no later than the Effective Date of this Agreement, with outplacement services through Lee, Hecht, Harrison for a period not to exceed six (6) months.
(d)
Insurance Benefits. If you are eligible for and should you elect continued health insurance under the Company’s policies pursuant to COBRA, the Company will pay your COBRA premium covering you and your family for the period of one year from the Separation Date. At the conclusion of said period, to the extent provided by the federal COBRA law or, if ap