Employment Agreement dated May 28, 2004



 Exhibit 10.1 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 This Executive Employment Agreement is between CREDENCE SYSTEMS
CORPORATION, a California corporation (the “Company”) and BRETT HOOPER, an individual (“Executive”). This Agreement shall become effective on the date of the Company’s merger with
NPTest Holdings Corporation (“NPTest”) (the “Effective Time”). 
  
 1. POSITION AND RESPONSIBILITIES 
  
 a.
Position. Executive shall be employed by the Company to render services to the Company in the position of Senior Vice President of Human Resources for a period of two (2) years. Executive shall perform such duties and responsibilities as are
normally related to such position in accordance with the standards of the industry and any additional duties now or hereafter assigned to Executive by the Company. Executive shall abide by the rules, regulations, and practices as adopted or modified
from time to time in the Company’s sole discretion. 
  
 b.
Other Activities. Except upon the prior written consent of the Company, Executive will not, during the term of this Agreement, (i) accept any other employment, or (ii) engage, directly or indirectly, in any other business activity (whether or
not pursued for pecuniary advantage) that might interfere with Executive’s duties and responsibilities hereunder or create a conflict of interest with the Company. 
  
 c. No Conflict. Executive represents and warrants that Executive’s execution of this Agreement, Executive’s
employment with the Company, and the performance of Executive’s proposed duties under this Agreement shall not violate any obligations Executive may have to any other employer, person or entity, including any obligations with respect to
proprietary or confidential information of any other person or entity. 
  
 2.
COMPENSATION AND BENEFITS 
  
 a. Base Salary. In
consideration of the services to be rendered under this Agreement, the Company shall pay Executive a salary at the rate of One Hundred and Eighty Thousand Dollars ($180,000) per year (“Base Salary”). The Base Salary shall be paid in
accordance with the Company’s regularly established payroll practice. 
  
 b. Current-Year NPTest Incentive Compensation. The Company agrees that Executive shall continue participating in his current NPTest incentive compensation plan for the remainder of the plan year in which the
Effective Time occurs. Executive shall receive any incentive compensation payment earned under such plan for the current year in accordance with its terms. Thereafter, Executive shall cease to be eligible for any further payments under his incentive
compensation arrangements with NPTest. 







 c. Incentive Bonus. For each full fiscal year of his employment with the Company, Executive shall
be eligible for an annual incentive bonus, based on his attainment of performance goals established by the Company (“Annual Bonus”). For his first full fiscal year of his employment with the Company, the target for Executive’s Annual
Bonus shall be fifty percent (50%) of his Base Salary. For subsequent fiscal years, the target for Executive’s Annual Bonus shall be determined by the Company in accordance with the target bonuses established for other senior Company
executives. 
  
 d. Benefits. Executive shall be eligible to
participate in the benefits made generally available by the Company to similarly-situated executives, in accordance with the benefit plans established by the Company, and as may be amended from time to time in the Company’s sole discretion.

  
 e. Expenses. The Company shall reimburse Executive for
reasonable business expenses incurred in the performance of Executive’s duties hereunder in accordance with the Company’s expense reimbursement guidelines. 
  
 3. AT-WILL EMPLOYMENT; TERMINATION BY COMPANY 
  
 a. At-Will Termination by Company. The Company may terminate Executive’s employment with the Company at any
time, for any reason or no reason at all, upon thirty (30) days’ advance written notice. 
  
 b. Severance. Except in situations where the employment of Executive is terminated For Cause, By Death or By Disability (as defined in Section 4 below), in the event that the Company terminates the employment
of Executive at any time, the Company will provide salary continuation payments for a period of twelve (12) months (the “Severance Period”). On the date of such termination, any unvested portion of Executive’s stock options shall
become immediately vested and exercisable to the extent that the options would have otherwise become vested and exercisable during the Severance Period. In addition, if Executive elects to continue his health coverage under COBRA, the Company shall
pay the premiums for Executive’s COBRA coverage until the earlier of the following: (1) the end of the Severance Period or (2) Executive becomes covered by another employer’s health plans. Executive’s eligibility for all of the
foregoing severance benefits is conditioned on Executive having first signed a release of claims in a form provided by the Company. 
  
 4. OTHER TERMINATIONS BY COMPANY 
  
 a. Termination for Cause. For purposes of this Agreement, “for Cause” shall mean: (i) Executive commits a crime involving dishonesty,
breach of 
  

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 trust, or physical harm to any person; (ii) Executive willfully engages in conduct that is in bad faith and materially
injurious to the Company, including but not limited to, misappropriation of trade secrets, fraud or embezzlement; (iii) Executive commits a material breach of this Agreement, which breach is not cured within twenty days after written notice to
Executive from the Company; (iv) Executive willfully refuses to implement or follow a lawful policy or directive of the Company, which breach is not cured within twenty days after written notice to Executive from the Company; or (v) Executive
willfully engages in misfeasance or malfeasance demonstrated by a pattern of failure to perform job duties diligently and professionally. The Company may terminate Executive’s employment for Cause at any time, without any advance notice. The
Company shall pay to Executive all compensation to which Executive is entitled up through the date of termination for Cause, subject to any other rights or remedies of Employer under law; and thereafter all obligations of the Company under this
Agreement shall cease. 
  
 b. By Death. Executive’s
employment shall terminate automatically upon Executive’s death. The Company shall pay to Executive’s beneficiaries or estate, as appropriate, any compensation then due and owing. Thereafter all obligations of the Company under this
Agreement shall cease. Nothing in this Section shall affect any entitlement of Executive’s heirs or devisees to the benefits of any life insurance plan or other applicable benefits. 
  
 c. By Disability. If Executive becomes eligible for the Company’s long term disability benefits or if, in the
sole opinion of the Company, Executive is unable to carry out the responsibilities and functions of the position held by Executive by reason of any physical or mental impairment for more than ninety (90) consecutive days or more than one hundred and
twenty (120) days in any twelve-month period, then, to the extent permitted by law, the Company may terminate Executive’s employment. The Company shall pay to Executive all compensation to which Executive is entitled up through the date of
termination, and thereafter all obligations of the Company under this Agreement shall cease. Nothing in this Section shall affect Executive’s rights under any disability plan in which Executive is a participant. 
  
 5. TERMINATION BY EXECUTIVE 
  
 Executive may terminate his employment with the Company at any time for any
reason or no reason at all, upon thirty (30) days’ advance written notice. During such notice period Executive shall continue to diligently perform all of his duties hereunder. The Company shall have the option, in its sole discretion, to make
Executive’s termination effective at any time prior to the end of such notice period as long as the Company pays Executive all compensation to which Executive is entitled up through the last day of the four week notice period. Thereafter all
obligations of the Company shall cease. 
  

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 6. TERMINATION OBLIGATIONS 
  
 a. Return of Property. Executive agrees that all property (including without limitation all equipment, tangible
proprietary information, documents, records, notes, contracts and computer-generated materials) furnished to or created or prepared by Executive incident to Executive’s employment belongs to the Company and shall be promptly returned to the
Company upon termination of Executive’s employment. 
  
 b.
Resignation and Cooperation. Upon termination of Executive’s employment, Executive shall be deemed to have resigned from all offices and directorships then held with the Company. Following any termination of employment, Executive shall
cooperate with the Company in the winding up of pending work on behalf of the Company and the orderly transfer of work to other employees. Executive shall also cooperate with the Company in the defense of any action brought by any third party
against the Company that relates to Executive’s employment by the Company. 
  
 7. INVENTIONS AND PROPRIETARY INFORMATION; PROHIBITION ON THIRD PARTY INFORMATION 
  
 a. Proprietary Information Agreement. Executive agrees to sign and be bound by the terms of the Company’s standard Employee Proprietary
Information and Inventions Agreement (“Proprietary Information Agreement”). 
  
 b. Non-Solicitation. Executive acknowledges that because of Executive’s position in the Company, Executive will have access to material intellectual property and confidential information. During the term
of Executive’s employment and for a period of twelve (12) months thereafter, in addition to Executive’s other obligations hereunder or under the Proprietary Information Agreement, Executive shall not, for Executive or any third party,
directly or indirectly (a) divert or attempt to divert from the Company any business of any kind, including without limitation the solicitation of or interference with any of its customers, clients, members, business partners or suppliers, or (b)
solicit or otherwise induce any person employed by the Company to terminate his employment. 
  
 c. Non-Disclosure of Third Party Information. Executive represents and warrants and covenants that Executive shall not disclose to the Company, or use, or induce the Company to use, any proprietary information
or trade secrets of others at any time, including but not limited to any proprietary information or trade secrets of any former employer, if any; and Executive acknowledges and agrees that any violation of this provision shall be grounds for
Executive’s immediate termination and could subject Executive to substantial civil liabilities and criminal penalties. Executive further specifically and expressly acknowledges that no officer or other employee or representative of the Company
has requested or instructed Executive to disclose or use any such third party proprietary information or trade secrets. 
  

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 8. ARBITRATION 
  
 Executive and the Company agree that any dispute, controversy or claim between them shall be settled exclusively by final and binding arbitration in
accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (the “AAA Rules”). A neutral and impartial arbitrator shall be chosen by mutual agreement of the parties or, if the
parties are unable to agree upon an arbitrator within a reasonable period of time, then a neutral and impartial arbitrator shall be appointed in accordance with the arbitrator nomination and selection procedure set forth in the AAA Rules. The
arbitrator shall apply the same substantive law, with the same statutes of limitations and remedies, that would apply if the claims were brought in court. The arbitrator also shall prepare a written decision containing the essential findings and
conclusions upon which the decision is based. Either party may bring an action in court to compel arbitration under this Agreement or to enforce an arbitration award. Otherwise, neither party shall initiate or prosecute any lawsuit in any way
related to any claim subject to this agreement to arbitrate. Any arbitration held pursuant to this Paragraph shall take place in Santa Clara County, California. Each party shall pay its own costs and attorneys’ fees, unless a party prevails on
a statutory claim and the statute provides that the prevailing party is entitled to payment of its attorneys’ fees. In that case, the arbitrator may award reasonable attorneys’ fees and costs to the prevailing party as provided by law. The
Company agrees to pay the costs and fees of the arbitrator. THE PARTIES UNDERSTAND AND AGREE THAT THIS AGREEMENT CONSTITUTES A WAIVER OF THEIR RIGHT TO A TRIAL BY JURY OF ANY CLAIMS OR CONTROVERSIES COVERED BY THIS AGREEMENT. 
  
 9. AMENDMENTS; WAIVERS; REMEDIES 
  
 This Agreement may not be amended or waived except by a writing signed by
Executive and by a duly authorized representative of the Company other than Executive. Failure to exercise any right under this Agreement shall not constitute a waiver of such right. Any waiver of any breach of this Agreement shall not operate as a
waiver of any subsequent breaches. All rights or remedies specified for a party herein shall be cumulative and in addition to all other rights and remedies of the party hereunder or under applicable law. 
  
 10. ASSIGNMENT; BINDING EFFECT 
  
 a. Assignment. The performance of Executive is personal hereunder,
and Executive agrees that Executive shall have no right to assign and shall not assign or purport to assign any rights or obligations under this Agreement. This Agreement may be assigned or transferred by the Company; and nothing in this Agreement
shall prevent the consolidation, merger or sale of the Company or a sale of any or all or substantially all of its assets. 
  

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 b. Binding Effect. Subject to the foregoing restriction on assignment by Executive, this Agreement
shall inure to the benefit of and be binding upon each of the parties; the affiliates, officers, directors, agents, successors and assigns of the Company; and the heirs, devisees, spouses, legal representatives and successors of Executive.

  
 11. NOTICES 
  
 All notices or other communications required or permitted hereunder shall be
made in writing and shall be deemed to have been duly given if delivered: (a) by hand; (b) by a nationally recognized overnight courier service; or (c) by United States first class registered or certified mail, return receipt requested, to the
principal address of the other party, as set forth below. The date of notice shall be deemed to be the earlier of (i) actual receipt of notice by any permitted means, or (ii) five business days following dispatch by overnight delivery service or the
United States Mail. Executive shall be obligated to notify the Company in writing of any change in Executive’s address. Notice of change of address shall be effective only when done in accordance with this paragraph. 
  
 Company’s Notice Address: 
  
 Credence Systems Corporation 
 1421 California Circle 
 Milpitas, CA 95035 
  
 Executive’s Notice Address: 
  

	
	  


	  



  
 12. SEVERABILITY 
  
 If any provision of this Agreement shall be held by a court or arbitrator to
be invalid, unenforceable, or void, such provision shall be enforced to the fullest extent permitted by law, and the remainder of this Agreement shall remain in full force and effect. In the event that the time period or scope of any provision is
declared by a court or arbitrator of competent jurisdiction to exceed the maximum time period or scope that such court or arbitrator deems enforceable, then such court or arbitrator shall reduce the time period or scope to the maximum time period or
scope permitted by law. 
  

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 13. TAXES 
  
 All amounts paid under this Agreement (including without limitation Base Salary and Severance) shall be paid less all applicable state and federal tax
withholdings and any other withholdings required by any applicable jurisdiction. 
  
 14. GOVERNING LAW 
  
 This Agreement shall be
governed by and construed in accordance with the laws of the State of California. 
  
 15. INTERPRETATION 
  
 This Agreement shall be
construed as a whole, according to its fair meaning, and not in favor of or against any party. Sections and section headings contained in this Agreement are for reference purposes only, and shall not affect in any manner the meaning or
interpretation of this Agreement. Whenever the context requires, references to the singular shall include the plural and the plural the singular. 
  
 16. OBLIGATIONS SURVIVE TERMINATION OF EMPLOYMENT 
  
 Executive agrees that any and all of Executive’s obligations under this agreement shall survive the termination of employment and the termination of
this Agreement. 
  
 17. COUNTERPARTS 
  
 This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original of this Agreement, but all of which together shall constitute one and the same instrument. 
  
 18. AUTHORITY 
  
 Each party represents and warrants that such party has the right, power and authority to enter into and execute this Agreement and to perform and
discharge all of the obligations hereunder; and that this Agreement constitutes the valid and legally binding agreement and obligation of such party and is enforceable in accordance with its terms. 
  
 19. ENTIRE AGREEMENT 
  
 This Agreement is intended to be the final, complete, and exclusive statement of the terms of Executive’s employment by
the Company and may not be contradicted by evidence of any prior or contemporaneous statements or agreements, except for agreements specifically referenced herein (including the Executive Proprietary Information and Inventions Agreement, the
Arbitration 
  

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 Agreement, and the Stock Plan and Stock Option Agreement of the Company). To the extent that the practices, policies or
procedures of the Company, now or in the future, apply to Executive and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control. Any subsequent change in Executive’s duties, position, or compensation
will not affect the validity or scope of this Agreement. 
  
 20. EXECUTIVE
ACKNOWLEDGEMENT 
  
 EXECUTIVE ACKNOWLEDGES THAT HE HAS HAD
THE OPPORTUNITY TO CONSULT LEGAL COUNSEL CONCERNING THIS AGREEMENT, THAT EXECUTIVE HAS READ AND UNDERSTANDS THE AGREEMENT, THAT EXECUTIVE IS FULLY AWARE OF ITS LEGAL EFFECT, AND THAT EXECUTIVE HAS ENTERED INTO IT FREELY BASED ON HIS OWN JUDGMENT AND
NOT ON ANY REPRESENTATIONS OR PROMISES OTHER THAN THOSE CONTAINED IN THIS AGREEMENT. 
  
 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first written above. 
  

					
	CREDENCE SYSTEMS CORPORATION:	 	BRETT HOOPER:
			
	By:	 	 /s/ Graham J. Siddall

	 	 /s/ Brett Hooper


	 	 	Graham J. Siddall	 	 
	 	 	Chairman and Chief Executive Officer	 	 

  

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