Document:

Prepared by R.R. Donnelley Financial -- Form of Indemnification Agreement

 Exhibit 10.9 
  
 NPTEST HOLDING CORPORATION 
  
 INDEMNIFICATION AGREEMENT 
  
 This Indemnification Agreement (the “Agreement”) is made as of ____________, 2003 by and between NPTest Holding Corporation, a Delaware
corporation (the “Company”), and ____________ (the “Indemnitee”). 
  
 WHEREAS, the Company and the Indemnitee recognize the difficulty in obtaining directors’ and officers’ liability insurance, the cost of such
insurance and the limited scope of coverage of such insurance; 
  
 WHEREAS, the Company and the Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting officers and directors to expensive litigation risks at the same time as the availability and coverage of
liability insurance has been severely limited; 
  
 WHEREAS, the
Indemnitee does not regard the current protection available as adequate under the present circumstances, and the Indemnitee and other officers and directors of the Company may not be willing to continue to serve as officers and directors without
additional protection; and 
  
 WHEREAS, the Company desires to
attract and retain the services of highly qualified individuals, such as the Indemnitee, to serve as officers and directors of the Company and to indemnify its officers and directors so as to provide them with the maximum protection permitted by
law. 
  
 NOW, THEREFORE, the Company and the Indemnitee hereby
agree as follows: 
  

	 	1.	 	Indemnification. 

  
 (a) Third Party Actions. The Company shall indemnify and hold harmless the Indemnitee if the Indemnitee was or is a party or is threatened to be
made a party to, or is involved in any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Company) by reason of the fact that the
Indemnitee is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
or by reason of anything done or not done by Indemnitee in any such capacity, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which
approval shall not be unreasonably withheld) actually and reasonably incurred by 

 the Indemnitee in connection with such action, suit or proceeding if the Indemnitee acted in good faith and in a manner
the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal action or proceeding, had no reasonable cause to believe the Indemnitee’s conduct was unlawful. The termination of
any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, in itself, create a presumption that the Indemnitee did not act in good faith and in a manner which the
Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that the Indemnitee’s conduct was unlawful. 
  
 (b) Actions by or in the Right of the Company. The Company shall
indemnify and hold harmless the Indemnitee if the Indemnitee was or is a party or is threatened to be made a party to, or is involved in any threatened, pending or completed action or suit by or in the right of the Company or any entity controlled
by or under common with the Company, or other enterprise related to the Company, to procure a judgment in its favor by reason of the fact that the Indemnitee is or was a director, officer, employee or agent of the Company, or is or was serving at
the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, or by reason of anything done or not done by Indemnitee in any such capacity, against expenses
(including attorneys’ fees) and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by the Indemnitee in connection with the
defense or settlement of such action or suit if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, except that, if applicable law so provides, no
indemnification shall be made in respect of any claim, issue or matter as to which the Indemnitee shall have been adjudged to be liable to the Company unless and only to the extent that the Delaware Court of Chancery or the court in which such
action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnity for such expenses which the
Delaware Court of Chancery or such other court shall deem proper. 
  
 (c) Mandatory Payment of Expenses. To the extent that the Indemnitee has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Subsections (a) and (b) of this Section 1 or in defense
of any claim, issue or matter therein, the Indemnitee shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by the Indemnitee in connection therewith. 
  

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 (d) Determination of Conduct. Any indemnification under Subsections (a) and (b) of this Section 1
(unless ordered by a court) shall be made by the Company unless the Company shall prove by clear and convincing evidence to a forum identified below that the Indemnitee has not met the applicable standard of conduct set forth in Subsections (a) and
(b) of this Section 1. The Indemnitee shall be entitled to select the forum in which the validity of any claim by the Company that the Indemnitee is not entitled to indemnification will be heard from among the following: (1) by a majority vote of
the disinterested directors, even though less than a quorum, (2) by independent legal counsel mutually agreed upon by Indemnitee and the Board in a written opinion, or (3) by the stockholders; provided that Indemnitee can select a forum consisting
of stockholders only with the approval of the Company. Notwithstanding the foregoing, the Indemnitee shall be entitled to contest any determination that the Indemnitee has not met the applicable standard of conduct set forth in Subsections (a) and
(b) of this Section 1 by petitioning a court of competent jurisdiction. 
  
 (e) Selection of Independent Counsel. If the determination of entitlement to indemnification is to be made by independent counsel pursuant to Subsection (d) of this Section 1, the independent counsel shall be
selected as provided in this Subsection (e). The independent counsel shall be selected jointly by the Indemnitee and the Company. In the event the Indemnitee and the Company cannot agree on a selection for the independent counsel, either party may
petition the Delaware Court of Chancery or other court of competent jurisdiction to resolve the issue or to make its own provisions for the selection of independent counsel. The Company shall pay any and all reasonable fees and expenses of
independent counsel incurred by such independent counsel in connection with acting pursuant to Subsection (d) of this Section 1, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Subsection (e), regardless
of the manner in which such independent counsel was selected or appointed. 
  

	 	2.	 	Expenses; Indemnification Procedure. 

  
 (a) Advancement of Expenses. In addition to Indemnitee’s rights under Section 1, expenses incurred in defending a civil or criminal action,
suit or proceeding by the Indemnitee, if the Indemnitee reasonably believes that he is entitled to indemnification pursuant to Subsection (a) or (b) of Section 1, shall be paid by the Company in advance of the final disposition of such action, suit
or proceeding upon receipt of an undertaking by or on behalf of the Indemnitee to repay such amount if it shall ultimately be determined that the Indemnitee is not entitled to be indemnified by the Company as authorized by this Agreement (the
“Undertaking”). 
  

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 (b) Notice/Cooperation by the Indemnitee. The Indemnitee shall give the Company notice in writing
as soon as practicable of any claim made against the Indemnitee for which indemnification will or could be sought under this Agreement. Notice to the Company shall be directed to the Chief Executive Officer of the Company at the Company’s
principal office shown on its public filings or posted on its website. In addition, the Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within the Indemnitee’s power. 

 
 (c) Procedure. Any indemnification and advances under Section 1 or
Section 2 shall be made no later than 45 days after Indemnitee’s request for payment. If a claim under this Agreement, under any statute, or under any provision of the Company’s Amended and Restated Certificate of Incorporation or Amended
and Restated Bylaws providing for indemnification, is not paid in full by the Company within 45 days after such determination, the Indemnitee may, but need not, at any time thereafter bring an action against the Company to recover the unpaid amount
of the claim and, subject to Section 13 of this Agreement, the Indemnitee shall also be entitled to be paid for the expenses (including attorneys’ fees) of bringing such action. It shall be a defense to any such action (other than an action
brought to enforce a claim for expenses incurred in connection with any action, suit or proceeding in advance of its final disposition) that the Indemnitee has not met the standards of conduct which make it permissible under applicable law for the
Company to indemnify the Indemnitee for the amount claimed. It is the parties’ intention that if the Company contests Indemnitee’s right to indemnification, the question of Indemnitee’s right to indemnification shall be for the court
to decide, and neither the failure of the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a determination that indemnification of Indemnitee
is proper in the circumstances because Indemnitee has met the applicable standard of conduct required by applicable law, nor an actual determination by the Company (including it Board of Directors, any committee or subgroup of the Board of
Directors, independent legal counsel, or its stockholders) that Indemnitee has not met such applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct. 
  
 (d) Notice to Insurers. If, at the time of the receipt of a notice of
a claim pursuant to Section 2(b) hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in
the respective policies. The Company shall thereafter take all reasonable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

  

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 (e) Selection of Counsel. In the event the Company shall be obligated under Section 2(a) hereof to
pay the expenses of any proceeding against the Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by the Indemnitee (such approval not to be unreasonably withheld), upon the
delivery to the Indemnitee of written notice of its election so to do. After delivery of such notice, approval of such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not be liable to the Indemnitee under
this Agreement for any fees of counsel subsequently incurred by the Indemnitee with respect to the same proceeding, provided that (i) the Indemnitee shall have the right to employ his or her counsel in any such proceeding at the Indemnitee’s
expense; and (ii) if (A) the employment of counsel by the Indemnitee has been previously authorized by the Company, (B) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in
the conduct of any such defense, or (C) the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of the Indemnitee’s counsel shall be at the expense of the Company. 

 

	 	3.	 	Additional Indemnification Rights; Nonexclusivity. 

  
 (a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s Amended and Restated Certificate of Incorporation, the Company’s Amended and Restated
Bylaws or by statute. In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such changes, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement shall have no effect on this Agreement or the parties’ rights and obligations hereunder. 
  
 (b) Nonexclusivity. The indemnification provided by this Agreement shall not be deemed exclusive of any rights to
which the Indemnitee may be entitled under the Company’s Amended and Restated Certificate of Incorporation, its Amended and Restated Bylaws, any agreement, any vote of shareholders or disinterested directors, the Delaware General Corporation
Law, or otherwise, both as to action in the Indemnitee’s official capacity and as to action in another capacity while holding such office. The indemnification provided under this Agreement shall continue as to the Indemnitee for any action
taken or not taken while serving in an indemnified capacity even though he or she may have ceased to serve in such capacity at the time of any action, suit or other covered proceeding. 
  

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 4.     Partial Indemnification. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred by him or her in the investigation, defense, appeal or settlement of any civil or
criminal action, suit or proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion of such expenses, judgments, fines or penalties to which the Indemnitee is entitled.

  
 5.     Mutual Acknowledgment.
Both the Company and the Indemnitee acknowledge that in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. The Indemnitee understands
and acknowledges that the Company has undertaken or may be required in the future to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify the Indemnitee. 
  
 6.     Officer and Director Liability Insurance. The Company may, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or
policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this
Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage. In all policies of director and officer liability insurance, the Indemnitee shall be named
as an insured in such a manner as to provide the Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, if the Indemnitee is a director; or of the Company’s officers, if the
Indemnitee is not a director of the Company, but is an officer; or of the Company’s key employees, if the Indemnitee is not an officer or director, but is a key employee. Notwithstanding the foregoing, the Company shall have no obligation to
obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by
such insurance is limited by exclusions so as to provide an insufficient benefit, or if the Indemnitee is covered by similar insurance maintained by a subsidiary or parent of the Company. However, the Company’s decision whether or not to adopt
and maintain such insurance shall not affect in any way its obligations to indemnify the Indemnitee under this Agreement or otherwise. 
  
 7.     Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do
or fail to do any act in violation 
  

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 of applicable law. The Company’s inability, pursuant to court order, to perform its obligations under this Agreement
shall not constitute a breach of this Agreement. The provisions of this Agreement shall be severable as provided in this Section 7. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction,
then the Company shall nevertheless indemnify the Indemnitee to the fullest extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable
in accordance with its terms. 
  
 8.     Exceptions. Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement: 
  
 (a) Claims Initiated by the Indemnitee. To indemnify or advance
expenses to the Indemnitee with respect to proceedings or claims initiated or brought voluntarily by the Indemnitee and not by way of defense, except with respect to proceedings brought to establish or enforce a right to indemnification under this
Agreement or any other statute or law, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board of Directors has approved the initiation or bringing of such suit. 
  
 (b) Lack of Good Faith. To indemnify the Indemnitee for any expenses
incurred by the Indemnitee with respect to any proceeding instituted by the Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by the Indemnitee in such
proceeding was not made in good faith or was frivolous. 
  
 (c)
Insured Claims. To indemnify the Indemnitee for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) which have been paid directly to
the Indemnitee by an insurance carrier under a policy of officers’ and directors’ liability insurance maintained by the Company. 
  
 (d) Claims Under Section 16(b). To indemnify the Indemnitee for expenses and the payment of profits arising from the purchase and sale by the
Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute. 
  

	 	9.	 	Construction of Certain Phrases. 

  
 (a) For purposes of this Agreement, references to the “Company” shall include any constituent corporation (including any constituent 

 

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 of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had
power and authority to indemnify its directors, officers, and employees or agents, so that if the Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, the Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting
or surviving corporation as the Indemnitee would have with respect to such constituent corporation if its separate existence had continued. 
  
 (b) For purposes of this Agreement, references to “other enterprises” shall include employee benefit plans; references to “fines”
shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company
which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants, or beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably
believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

  
 10.   Effectiveness. This Agreement
shall be deemed to be effective as of the commencement date of the Indemnitee’s services as an officer or director of the Company. 
  
 11.   Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original.

  
 12.   Successors and Assigns. This
Agreement shall be binding upon the Company and its successors and assigns, and shall inure to the benefit of the Indemnitee and the Indemnitee’s estate, heirs, legal representatives and assigns. This Agreement is not assignable by the
Company except in connection with a sale of all or substantially all of the Company’s business through a merger, asset sale or similar transaction. 
  
 13.   Attorneys’ Fees. In the event that any action is instituted by the Indemnitee under this Agreement to enforce or
interpret any of the terms hereof, the Indemnitee shall be entitled to be paid all court costs and expenses, including reasonable attorneys’ fees, incurred by the Indemnitee with respect to such action, unless as a part of such action, the
court of competent jurisdiction determines that each of the material assertions made by the Indemnitee as a basis for such action 
  

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 were not made in good faith or were frivolous. In the event of an action instituted by or in the name of the Company
under this Agreement or to enforce or interpret any of the terms of this Agreement, the Indemnitee shall be entitled to be paid all court costs and expenses, including attorneys’ fees, incurred by the Indemnitee in defense of such action
(including with respect to the Indemnitee’s counterclaims and cross-claims made in such action), unless as a part of such action the court determines that each of the Indemnitee’s material defenses to such action were made in bad faith or
were frivolous. 
  
 14. Notice. All notices, requests,
demands and other communications under this Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and receipted for by the party addressee, on the date of such receipt, or (ii) if mailed by domestic certified or
registered mail with postage prepaid, on the third business day after the date postmarked. Addresses for notice to either party are as shown on the signature page of this Agreement, or as subsequently modified by written notice. 
  
 15. Consent to Jurisdiction. The Company and the Indemnitee each
hereby irrevocably consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement and agree that any action instituted under this
Agreement shall be brought only in the state courts of the State of Delaware. 
  
 16. Choice of Law. This Agreement shall be governed by and its provisions construed in accordance with the laws of the State of Delaware. 
  
 17. Modification. This Agreement constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof. All prior negotiations, agreements and understandings between the parties with respect thereto are superseded hereby. This Agreement may not be modified or amended except by an instrument in writing signed by or on behalf of
the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 
  

	 	18.	 	Survival of Rights. 

  
 (a) The rights conferred on Indemnitee by this Agreement shall continue after Indemnitee has ceased to be a director or officer of the Company or to serve
at the request of the Company as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, in each case in respect of the period during which Indemnitee so served, and shall inure to the benefit of
Indemnitee’s heirs, executors and administrators. 
  

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 (b) The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no
such succession had taken place. 
  
 19.   Period of Limitations. No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company against Indemnitee, Indemnitee’s estate, spouse, heirs, executors or
personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a
legal action within such two-year period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern. 
  
  
 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  

	NPTEST HOLDING CORPORATION
		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  
 AGREED TO AND ACCEPTED:

  
 INDEMNITEE 
  

	

	
	

	
	

	
	

	 (address)

  

 11Prepared by R.R. Donnelley Financial -- Employment Agreement dated 09/22/2003

 Exhibit 10.12 
  
 EMPLOYMENT AGREEMENT 
  
 EMPLOYMENT AGREEMENT (“Agreement”) dated as of September 22, 2003 (the “Effective Date”) by and among NPTest Holding
Corporation, a Delaware corporation (together with its successors and subsidiaries, the “Company”), and David Mullin (“Executive”). 
  
 WHEREAS, the Company desires to employ Executive on the terms set forth herein; 
  
 WHEREAS, Executive desires to accept such employment and enter into this
Agreement; 
  
 NOW THEREFORE, in consideration of the foregoing
and of the mutual covenants and agreements of the parties set forth in this Agreement, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound,
agree as follows: 
  
 ARTICLE 1 
 POSITION; TERM OF AGREEMENT 
  
 Section 1.01. Position. (a) As of and following the Effective Date, Executive shall serve as Vice President and Chief
Financial Officer and shall report to the Chief Executive Officer. Executive shall have such duties and authority, consistent with such position, as shall be determined from time to time by the Chief Executive Officer. 
  
 (b) During the Employment Term, Executive will devote substantially all of
his business time to the performance of his duties under this Agreement and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict with the rendition of such services either directly or
indirectly, without the prior written consent of the Board of the Directors of the Company (the “Board”); provided that, so long as such service does not interfere with the performance of Executive’s duties hereunder,
nothing herein shall be deemed to preclude Executive from serving on any civic or charitable board or, subject to the prior written consent of the Board, on any other corporate board. 
  
 Section 1.02. Term. Executive shall be employed by the Company for a period (the “Employment Term”)
commencing on the Effective Date and, subject to earlier termination or extension as provided herein, ending on the second anniversary of the Effective Date; provided that on each anniversary of the Effective Date beginning on such second
anniversary, the Employment Term shall be automatically extended for successive one-year periods unless not later 

 than one month prior to any such automatic extension the Company or Executive shall give notice that the Employment Term
shall not be extended. 
  
 ARTICLE 2 
 COMPENSATION AND BENEFITS 
  
 Section 2.01. Base Salary. Commencing on the Effective Date, the Company shall pay Executive an annual base salary
(the “Base Salary”) at the initial annual rate of $225,000 payable in accordance with the payroll and personnel practices of the Company from time to time. Executive’s base salary shall be reviewed by the Board at least
annually (and at least as often as salaries are reviewed for other officers of the Company) for possible increases in the sole discretion of the Board. 
  
 Section 2.02. Performance Bonus. For each calendar year during the term of this Agreement, subject to Executive’s continued employment
hereunder on December 31 of such year, Executive shall be eligible for an annual bonus (the “Annual Bonus”), with a target bonus opportunity of up to 50% of Base Salary, based on attainment of such goals as the Board shall determine
each year; provided that subject to Executive’s continued employment hereunder through December 31, 2003, Executive will be eligible to receive a bonus with a target bonus opportunity up to 50% of the pro-rated portion of Base Salary for
the period from the Effective Date through December 31, 2003, based on attainment of such goals as the Board shall determine. The Annual Bonus for each calendar year (including the bonus for the period ending December 31, 2003) shall be paid in a
lump sum payment on or before March 31 of the following calendar year. 
  
 Section 2.03. Employee Benefits. During the Employment Term, Executive shall be eligible for employee benefits (including fringe benefits, vacation and health, accident and disability insurance, and retirement plan participation)
substantially similar to those benefits made available generally to senior executives of the Company. 
  
 Section 2.04. Business And Travel Expenses. Reasonable travel, entertainment and other business expenses incurred by Executive in the performance
of Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies as in effect from time to time. 
  
 Section 2.05. Options. (a) On or promptly after the Effective Date, the Company shall grant to Executive an option (the “Option”)
to purchase 700,000 shares of common stock of the Company (“Common Stock”), at an exercise price per share equal to the fair market value (determined in accordance with the terms of the Plan) of a share of Common Stock on the grant
date. 
  
 (b) Subject to Executive’s continued employment
with the Company or one of its subsidiaries as of the applicable vesting date, (i) 25% of the shares 
  

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 constituting the Option shall become vested and exercisable on September 15, 2004, and (ii) thereafter, the Option shall
become vested and exercisable at a rate of 1/48 of the shares constituting the Option per month. 
  
 (c) If within 12 months after a Change in Control (as defined in Article 7), Executive’s employment is terminated by the Company without Cause (as
defined in Article 7) or by Executive for Good Reason (as defined in Article 7), a portion of the then unvested portion of the Option shall become vested and exercisable as follows: (i) if such termination is on or before the first anniversary of
the Effective Time, the Option shall become vested to the extent the Option would have otherwise become vested during the 18 months following the date of such termination had Executive remained employed by the Company; (ii) if such termination is
after the first anniversary but on or before the second anniversary of the Effective Time, the Option shall become vested to the extent the Option would have otherwise become vested during the 24 months following the date of such termination had
Executive remained employed by the Company; or (iii) if such termination is after the second anniversary of Effective Time, the Option will become vested in full. 
  
 (d) After the completion of an initial public offering, if any, of the Common Stock, if during Executive’s employment
with the Company any executive officer of the Company has the opportunity, with the consent of the applicable managing underwriters, to sell Common Stock in a secondary offering pursuant to a registration statement of the Company, then the Company
shall use its reasonable efforts to cause Executive to have the opportunity to sell his shares of Common Stock in such offering on the following terms: 
  
 (i) Executive shall be entitled to sell a number of shares equal to (x) the number of shares underlying his unexercised options plus
shares held by Executive acquired from the Company, times (y) the percentage obtained by dividing (A) the number of shares to be sold in the offering by the officer who is entitled to sell the highest percentage of his beneficially owned shares by
(B) such officer’s equity in the Company (both shares acquired from the Company and shares underlying unexercised options). 
  
 (ii) The terms and conditions of Executive’s participation in any such offering shall be on substantially the same terms and
conditions (including any underwriting arrangements and cross-indemnification) as for the other executive officers. 
  
 (iii) In the event Executive has the right under this subsection to participate in an offering before his Option begins to vest on
September 15, 2004, then a portion of the Option shall become vested to the extent necessary to enable Executive to acquire the number of shares he would be entitled to sell in such secondary offering as calculated under clause (i) above;
provided that in no event shall Executive become vested 
  

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 by virtue of this clause (iii) in more than 25% of the shares originally subject to the Option.

  
 (e) Except as set forth herein, the Options shall otherwise
be subject to the terms of the Company’s Stock Incentive Plan (the “Plan”), a copy of which is attached hereto as Attachment 1. 
  
 ARTICLE 3 
 CERTAIN
TERMINATION BENEFITS 
  
 Section
3.01. General. The receipt of any payments and benefits pursuant to this Article 3 by Executive shall be contingent upon Executive signing a release of claims arising from Executive’s employment and the termination thereof in a form
reasonably acceptable to the Company. 
  
 Section 3.02.
Termination Without Cause. In the event that Executive’s employment is terminated by the Company without Cause (other than by reason of Executive’s death or disability) during the Employment Term, the Company shall pay Executive as
soon as practicable a lump sum, in cash, equal to one times Executive’s then current annual Base Salary plus the pro-rated portion (based on the time period during which Executive was employed by the Company during the year) of Executive’s
target Annual Bonus for the year of termination. 
  
 Section 3.03.
Termination Following a Change in Control. If, within 12 months after a Change in Control, Executive’s employment is terminated by the Company without Cause or by Executive for Good Reason, then in lieu of any benefits pursuant to
Section 3.02, Executive shall be entitled to the following benefits: 
  
 (a) The Company shall pay Executive as soon as practicable a lump sum, in cash, equal to one times Executive’s then current annual Base Salary. 
  
 (b) The Company shall pay Executive the pro-rated portion (based on the time period during which Executive
was employed by the Company during the year) of Executive’s target Annual Bonus for the year of termination. 
  
 ARTICLE 4 
 COVENANTS AND REPRESENTATIONS

  
 Section 4.01. Nondisclosure, Noncompetition,
Nonsolicitation, and Nondisparagement. (a) Executive shall not (except to the extent required by an order of a court having competent jurisdiction or under subpoena from an appropriate government agency) disclose to any third person, whether
during or 
  

 4 

 subsequent to the Executive’s employment with the Company, any trade secrets; customer lists; provider lists;
product development and related information; marketing plans and related information; sales plans and related information; premium or any other pricing information; operating policies and manuals; research; payment rates; methodologies; contractual
forms; business plans; financial records; or other financial, commercial, business or technical information related to the Company or any affiliate of the Company unless such information has been previously disclosed to the public by the Company or
has become public knowledge other than by a breach of this Agreement; provided that this limitation shall not apply to any such disclosure made while the Executive is employed by the Company or its affiliate if such disclosure occurred in
connection with the performance of Executive’s job as an employee of the Company or its affiliates. Executive agrees that upon termination of Executive’s employment with the Company for any reason, Executive will return to the Company
immediately all memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of the Company or its affiliates. Executive further agrees that Executive will not retain
or use for Executive’s account at any time any trade names, trademark or other proprietary business designation used or owned in connection with the business of the Company or its affiliates. 
  
 (b) While employed by the Company, Executive shall not, on his account, or as
an employee, consultant, independent contractor, partner, owner, officer, director or stockholder, engage in, be connected with, have any interest in, or aid or assist anyone else to engage in, be connected with, or have any interest in, any firm or
person which directly competes with a line or lines of business which the Company (or any of its subsidiaries) was engaged in or sought to be engaged in during the Employment Term; provided that Executive may purchase securities in any
corporation whose securities are listed or traded on a national securities exchange or in an over-the-counter securities market if such purchases do not result in Executive beneficially owning, directly or indirectly, at any time 5% or more of the
equity securities of any such corporation. 
  
 (c) While employed
by the Company and for 12 months after the termination of Executive’s employment, Executive shall not, directly or indirectly: 
  
 (i) induce or attempt to induce any employee of the Company (or any subsidiary of the Company) to be employed or perform services
elsewhere; 
  
 (ii) solicit or attempt to solicit
away from the Company the trade of any individual or entity which, at the time of such solicitation, is a customer of the Company (or any subsidiary of the Company) or which the Company (or any subsidiary of the Company) is undertaking reasonable
steps to procure as a customer at the time of or immediately preceding termination of employment; provided, however, that this 
  

 5 

 limitation shall only apply to any product or service which is in competition with a product or service
of the Company (or any subsidiary of the Company). 
  
 (d) In
connection with the termination of Executive’s employment hereunder, Executive shall cooperate with the Company and its affiliates to ensure an orderly transition, in such a manner and at such times as the Company shall reasonably request;
provided that (i) such obligation shall not continue beyond the period 90 days following such termination and (ii) the Company shall provide reasonable compensation, at a rate agreed by the Company and Executive, for any such post-employment
cooperation that requires more than a de minimis amount of Executive’s time. 
  
 (e) Except as required by law, neither party will at any time (whether during or after termination of Executive’s employment with the Company) knowingly make any statement, written or oral, or take any other
action that would disparage or otherwise harm the other party, its business or reputation or, in the case of the Company, the reputation of any of its affiliates or the officers and directors of any of them. 
  
 Section 4.02. Material Inducement; Specific Performance. (a) If any
provision of Section 4.01 is determined by a court of competent jurisdiction not to be enforceable in the manner set forth in this Agreement, the Company and Executive agree that it is the intention of the parties that such provision should be
enforceable to the maximum extent possible under applicable law and that such court shall reform such provision to make it enforceable in accordance with the intent of the parties. 
  
 (b) Executive acknowledges that a material part of the inducement for the Company to provide the compensation provided
herein is Executive’s covenants set forth in Section 4.01 and that the covenants and obligations of Executive with respect to noncompetition, nondisclosure and nonsolicitation relate to special, unique and extraordinary matters and that a
violation of any of the terms of such covenants and obligations will cause the Company irreparable injury for which adequate remedies are not available at law. Therefore, Executive agrees that, if Executive shall materially breach any of Section
4.01(a), (b) or (c) during or following termination of employment, the Company shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post a bond) restraining Executive from committing any
violation of the covenants and obligations contained in such Sections and the Company shall have no further obligation to pay Executive any benefits otherwise payable hereunder. The remedies in the preceding sentence are cumulative and are in
addition to any other rights and remedies the Company may have at law or in equity as an arbitrator (or court) shall reasonably determine. 
  
 Section 4.03. Employee Representation. Executive expressly represents and warrants to the Company that Executive is not a party to any contract or

  

 6 

 agreement which will or may restrict in any way Executive’s ability to fully perform Executive’s duties and
responsibilities under this Agreement. 
  
 ARTICLE 5 
 SUCCESSORS AND ASSIGNMENTS 
  
 Section 5.01. Assignments. Except for an assignment to a successor or subsidiary of the Company, this Agreement shall
not be assignable by the Company without the written consent of Executive. This Agreement shall not be assignable by Executive. 
  
 Section 5.02. Successors; Binding Agreement. This Agreement shall inure to the benefit of and be binding upon personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and legatees. 
  
 ARTICLE 6 
 MISCELLANEOUS 
  
 Section 6.01. Notices. Any notice required to be delivered hereunder shall be in writing and shall be addressed:

  

	 	(i)	 	if to the Company, to: 

  
 c/o NPTest, Inc. 
 150 Baytech Drive 
 San Jose, CA 95134 
 Attention: Chief Executive Officer 
 Fax: (408) 586-4661 
  
 with copies to: 
  
 Davis Polk &
Wardwell 
 1600 El Camino Real 
 Menlo Park, CA 94025 
 Tel: 650-752-2000 
 Fax: 650-752-2111 
 Attn: David W. Ferguson 
  

	 	(ii)	 	if to Executive, to Executive’s last known address as reflected on the books and records of the Company; 

  
 or, in each case, to such other address as such party may hereafter specify for the purpose
by written notice to the other party hereto. Any such notice shall be deemed received on the date of receipt by the recipient thereof if received prior to 
  

 7 

 5:00 p.m. in the place of receipt and such day is a business day in the place of receipt. Otherwise, any such notice
shall be deemed not to have been received until the next succeeding business day in the place of receipt. 
  
 Section 6.02. Dispute Resolution. (a) Except as provided in Section 4.02, each of Executive and the Company shall have the right and option to
elect (in lieu of litigation) to have any dispute or controversy arising under or in connection with this Agreement settled by arbitration in a location in California, in accordance with the rules of the American Arbitration Association then in
effect. The election to arbitrate, as herein provided, and the decision of the arbitrator in that proceeding, shall be binding on the Company and Executive. Judgment may be entered on the award of the arbitrator in any court having jurisdiction.

  
 (b) Each party shall pay its own expenses of such arbitration
or litigation and all common expenses of such arbitration or litigation shall be borne equally by Executive and the Company. Each party to an arbitration or litigation hereunder shall be responsible for the payment of its own attorneys’ fees.

  
 Section 6.03. Unfunded Agreement. The obligations of
the Company under this Agreement represent an unsecured, unfunded promise to pay benefits to Executive and/or Executive’s beneficiaries, and shall not entitle Executive or such beneficiaries to a preferential claim to any asset of the Company.

  
 Section 6.04. Non-exclusivity Of Benefits. Unless
specifically provided herein, neither the provisions of this Agreement nor the benefits provided hereunder shall reduce any amounts otherwise payable, or in any way diminish Executive’s rights as an employee of the Company, whether existing now
or hereafter, under any compensation and/or benefit plans (qualified or nonqualified), programs, policies, or practices provided by the Company, for which Executive may qualify; provided that the severance benefits provided pursuant to
Article 3 hereof shall be in lieu of any cash severance benefits under any such plans, programs, policies or practices. 
  
 Section 6.05. Employment Status. Nothing herein contained shall interfere with the Company’s right to terminate Executive’s employment
with the Company at any time, with or without Cause, subject to the Company’s obligation to provide benefits pursuant to Article 3, if any. Executive shall also have the right to terminate Executive’s employment with the Company at any
time without liability, subject only to the provisions hereof and Executive’s obligations hereunder. 
  
 Section 6.06. Entire Agreement. This Agreement represents the entire agreement between Executive and the Company and its affiliates with respect to
Executive’s employment and/or severance rights, and supersedes all prior discussions, negotiations, and agreements concerning such rights; provided that any amounts payable to Executive hereunder shall be reduced by any amounts

  

 8 

 paid to Executive or notice period as required by any applicable law in connection with any termination of
Executive’s employment. 
  
 Section 6.07. Tax Withholding.
Notwithstanding anything in this Agreement to the contrary, the Company shall withhold from any amounts payable under this Agreement all federal, state, city, or other taxes as are legally required to be withheld. 
  
 Section 6.08. Waiver Of Rights. The waiver by either party of a breach
of any provision of this Agreement shall not operate or be construed as a continuing waiver or as a consent to or waiver of any subsequent breach hereof. 
  
 Section 6.09. Severability. In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining parts of this Agreement, and this Agreement shall be construed and enforced as if the illegal or invalid provision had not been included. 
  
 Section 6.10. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the
State of California without reference to principles of conflict of laws. 
  
 Section 6.11. Counterparts. This Agreement may be signed in several counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were on the same instrument.

  
 ARTICLE 7 
 DEFINITIONS 
  
 For purposes of this Agreement, the following terms shall have the meanings set forth below. 
  
 “Cause” means the occurrence of any one or more of the following: 
  
 (i) Executive’s willful and continued failure
substantially to perform the duties of Executive’s position as then in effect (other than as a result of incapacity due to physical or mental illness) which failure is not remedied within 15 business days of written notice from the Company;

  
 (ii) Executive’s gross negligence or
willful malfeasance in the performance of Executive’s material duties hereunder; 
  
 (iii) Executive’s willful breach of any of the covenants contained in Section 4.01; or 
  

 9 

 (iv) Executive’s commission of an act constituting fraud or embezzlement, or
Executive’s conviction of, or entry of a plea of guilty or nolo contendere to, a felony. 
  
 For purposes of this definition, no act or failure to act shall be deemed “willful” unless effected by Executive not in good faith and without reasonable belief that such action or failure to act was in the
best interests of the Company. 
  
 “Change in
Control” means the occurrence of any of the following: 
  
 (i) the consummation of a merger or consolidation of the Company with or into any other entity pursuant to which the direct or indirect stockholders of the Company immediately prior to such merger or consolidation
hold less than 50% of the voting power of the surviving entity; 
  
 (ii) the sale or other disposition of all or substantially all of the Company’s assets; or 
  
 (iii) any acquisition by any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) and other than the direct and indirect stockholders of the Company immediately after the Effective Date) of the beneficial ownership of 50% or more of the voting power of the
Company’s equity securities in a single transaction or series of related transactions, other than in an underwritten public offering of the securities of the Company or any of its affiliates; 
  
 provided that a transaction shall not constitute a “Change in Control” if
its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who, directly or indirectly, held the securities of the Company
immediately before such transaction. 
  
 “Good
Reason” means the occurrence of any of the following without Executive’s written consent: 
  
 (i) Any change in Executive’s title or position that constitutes a material diminution in authority as compared to the authority of
his title or position as of the Effective Date, or any substantial diminution in Executive’s duties and responsibilities (other than a change due to Executive’s disability), including if Executive is no longer the Chief Financial Officer
of the Company (or, in the case of a Change of Control, of the ultimate parent entity of the Company) or its successor; 
  
 (ii) Any relocation of Executive’s office to a location more than 50 miles from its location on the Effective Date; 
  
 (iii) A material reduction in Executive’s salary or
benefits not agreed to by Executive. 
  

 10 

 IN WITNESS WHEREOF, the Company and Executive have executed this Agreement, to be effective as of the day
and year first written above. 
  

	NPTEST HOLDING CORPORATION
		
	By:	 	 /s/    ASHOK BELANI

	 	 	 Name:    Ashok Belani

	 	 	 Title:    President

	
	 EXECUTIVE:

	
	 /s/    DAVID MULLIN

	 Name:    David Mullin

  

 11

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