Document:

6.30.2014 EX 10.2

Exhibit 10.2
 

RUDOLPH TECHNOLOGIES
RESTATED AMD AMENDED MANAGEMENT AGREEMENT

THIS MANAGEMENT AGREEMENT (the “Agreement”) is made as of July 24, 2000 (the “Effective Date”), as restated and amended through July 29, 2014, by and among Rudolph Technologies (“Technologies” or the “Company”), a Delaware corporation, and Steven R. Roth (“Executive”).

WHEREAS, Executive desires to be employed as an Officer of Technologies, and Technologies desires to employ Executive Officer and to be assured of its right to his services on the terms and conditions hereinafter set forth, and Executive is willing to agree to such employment on such terms and conditions:

NOW, THEREFORE, the Company and Executive agree as follows:

		
	1.
	Definitions.  As used herein, the following terms shall have the following meanings:

“Board” means the Company’s board of directors.

“Cause” means the determination by the Board, in the exercise of its good faith judgment, that:  (a) Executive has committed a fraud, felony or other serious act of moral turpitude; or (b) Executive has breached his duty of loyalty to the Company or its Subsidiaries; or (c) Executive has committed a material breach of this Agreement.  A termination for Cause may be made effective on five (5) days written notice to the Executive from the Company.  A termination for Cause shall not take effect unless, and Executive’s employment with the Company shall continue while, these provisions for a Cause termination are complied with.  Executive shall be given written notice by the Company of its intention to terminate him for Cause, such notice (A) to follow a good faith investigation by the Company into the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination for Cause is based, (B) to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination for Cause is based, and (C) to be given within sixty (60) days of the Company’s learning of such act or acts or failure or failures to act.  Executive shall have thirty (30) days after the date that such written notice has been given to him in which to seek to remedy such matter.  If he fails to remedy such matter, Executive shall be entitled to a hearing before the Board at which Executive (with legal counsel, if Executive so wishes) is entitled to appear.  Such hearing shall be held within fifteen (15) days of the end of the foregoing thirty (30) day remedy period, provided Executive requests such hearing in writing within such thirty (30) day period.  If following such hearing (or, if no hearing is so requested, following the end of the thirty (30) day remedy period), the Board furnishes to the Executive written notice and confirms that, in its good faith judgment, grounds for Cause on the basis of the original notice exist, the termination for Cause shall be effective five (5) days following the date of such subsequent notice.

“Good Reason” means the resignation by Executive of employment with Technologies as a direct result of either (i) a material diminution of duties and responsibilities of Executive as an employee of Technologies, (ii) the relocation of Executive outside of the Flanders, New Jersey area (for the avoidance of doubt, this area is considered a fifty (50) mile radius around the headquarters office in Flanders, NJ), (iii) any requirement by the Company that Executive make a material misstatement or omission in any financial report or governmental filing, or (iv) a material breach of this Agreement by the Company or its Subsidiaries in the absence of a material breach of this Agreement by Executive, provided that, in the case of Executive’s termination of employment for Good Reason pursuant to Section 4(c) of this Agreement, such diminution or breach, as the case may be, has continued fifteen (15) days after delivery of written notice by Executive to the Board stating Executive’s intent to resign as a consequence of such diminution or breach and Executive’s resignation actually occurs within sixty (60) days following the first occurrence of such diminution or breach.

“Independent Third Party” means any Person or group of Persons who, immediately prior to the contemplated transaction, does not own in excess of 5% of the common equity of the Company or its Subsidiaries on a fully-diluted basis, who is not controlling, controlled by or under common control with any such 5% owner of capital stock and who is not the spouse or descendent (by birth or adoption) of any such 5% owner of capital stock.

“Permanent Disability” means that Executive, is unable to perform, by reason of physical or mental incapacity, his duties or obligations under this Agreement, for a period of one hundred eighty (180) days.

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“Sale of the Company” means the sale of Technologies to an Independent Third Party or affiliated group of Independent Third Parties pursuant to which such party or parties acquire (i) capital stock of Technologies possessing the voting power to elect a majority of Technologies Board (whether by merger, consolidation or sale or transfer of the Company’s capital stock) or (ii) all or substantially all of the Company’s assets determined on a consolidated basis.

“Change of Control” shall be deemed to occur upon the earliest to occur after the Effective Date of this Agreement of any of the following events:

		
	(i)
	Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing twenty-five percent (25%) or more of the combined voting power of the Company’s then outstanding securities;

		
	(ii)
	Change in Board of Directors.  During any period of two (2) consecutive years (not including any period prior to the Effective Date of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clauses (i), (iii) or (iv) of this definition of Change of Control whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

		
	(iii)
	Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger of consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;

		
	(iv)
	Liquidation.  The approval by the shareholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and

		
	(v)
	Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule l4A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

Provided, however, that any transaction or other event described in clauses (i) through (v) above shall not be deemed to constitute a “Change of Control” under this Agreement unless such transaction or event constitutes a “change in control” under Section 409A of the Internal Revenue Code (“Code”) and the regulations and interpretative guidance thereunder.

Certain Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

		
	(A)
	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

		
	(B)
	“Person” means an individual, a partnership, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof.  Person shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company.

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	(C)
	“Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

		
	2.
	Employment.  Technologies agrees to employ Executive, and Executive hereby accepts employment with Technologies, upon the terms and conditions set forth in this Agreement.

		
	(a)
	Position and Duties:

		
	(i)
	Executive shall serve as CFO of Technologies and shall have such duties as may be consistent with such position and as are determined by the Board from time to time.

		
	(ii)
	Executive shall devote his best efforts and his full business time and attention (except for permitted vacation periods and reasonable periods of illness or other incapacity which does not constitute Permanent Disability) to the business and affairs of Technologies; provided, that subject to approval by the Board, Executive may serve as a director of other companies that are not competitive with the business of Technologies.  Executive shall perform his duties and responsibilities to the best of his abilities in a diligent, trustworthy, businesslike and efficient manner.

		
	(b)
	Term:  The “Term” of this Agreement shall be for 1 year from the date hereof, unless earlier terminated by either party as provided in Section 4(a) below, subject to automatic renewals for successive 1 year Term unless either party has delivered written notice not less than ninety (90) days prior to the expiration of the initial Term or any renewal thereof.

		
	3.
	Non-competition, non-solicitation:

		
	(a)
	Executive acknowledges that during the course of his employment with Technologies he will become familiar with the trade secrets and with other Confidential Information of the Company and its Subsidiaries and his services will be of a special, unique and extraordinary value to the Company and its Subsidiaries.  Therefore, Executive agrees that, during the time he is employed by Technologies and for 1 year thereafter (the “Non-Compete Period”), Executive shall not directly or indirectly own, operate, manage, control, participate in, consult with, advise, provide services for, or in any manner engage in (including by himself or in association with any person, firm, corporate or other business organization or through an entity), any business engaged in the businesses in which the Company and its Subsidiaries is engaged or then proposes to engage within any geographical area in which the Company or its Subsidiaries engages in business.  Nothing herein shall prohibit Executive from being a passive owner or not more that 5% of the outstanding stock of any class of a corporation which is publicly traded, or any other passive minority investment in any investment fund, limited partnership or similar entity, whether or not publicly traded, and so long as Executive has no active participation in the business of such entity.

		
	(b)
	During the time Executive is employed by Technologies and for 1 year thereafter (the “Non-Solicitation Period”), Executive shall not, directly or indirectly through another entity, (i) induce or attempt to induce any employee of Technologies to leave the employ of Technologies, or in any way interfere with the relationship between Technologies and any employee thereof, including without limitation, inducing or attempting to induce any employee, group of employees or any other person or persons to interfere with the business or operations of Technologies, (ii) hire any person who was an employee of Technologies at any time during Executive’s employment period, or (iii) induce or attempt to induce, whether directly or indirectly, any customer, supplier, distributor, franchisee, licensee or other business relation of Technologies to cease doing business with Technologies, or in any way interfere with the relationship between any such customer, supplier, distributor, franchisee, licensee or business relation and Technologies.

		
	(c)
	Executive agrees that:  (i) the covenants set forth in this Section are reasonable in geographical and temporal scope and in all other respects, (ii) the Company would not have entered into this Agreement but for the covenants of Executive contained herein, and (iii) the covenants contained herein have been made in order to induce the Company to enter into this Agreement.

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	(d)
	If, at the time of enforcement of this Section, a court shall hold that the duration, scope or area restrictions stated herein are unreasonable under the circumstances then existing, the parties agree that the courts shallbe allowed to revise the maximum duration, scope or area contained herein to cover the maximum period, scope and area permitted by law.

		
	(e)
	Executive recognizes and affirms that in the event of his breach of the provisions of this Section 3 of this Agreement, money damages would be inadequate and the Company and its Subsidiaries would have no adequate remedy at law.  Accordingly, Executive agrees that in the event of a breach or threatened breach by Executive of any of the provisions of this Section 3 of this Agreement, the Company and its Subsidiaries, in addition and supplementary to other rights and remedies existing in its favor may apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security).

		
	4.
	Termination and Severance:

		
	(a)
	Termination.  Executive and Technologies shall each have the right to terminate the Term and Executive’s employment with Technologies (a “Termination”, and the date of such termination the “Termination Date”) at any time and for any reason or for no reason at all, by delivering written notice to the other party, and upon any such Termination, Technologies shall have no further obligations to Executive hereunder, except as set forth in Sections 4(b), (c) and (d) and Sections 5(b) and (c) below.

		
	(b)
	Base Salary through Termination:  COBRA.  Executive shall be entitled to receive his Base Salary earned through his Termination Date, prorated on a daily basis together with all accrued but unpaid vacation time earned through his Termination Date, all of which shall be paid in a lump sum as of the Termination Date.  In addition, Executive shall be entitled to COBRA benefits after the Termination Date.  Except as set forth in Sections 4(c) and (d) and Sections 5(b) and (c) below, Executive shall not be entitled to receive his Base Salary or any bonuses or other benefits from Technologies for any period after the Termination Date.

		
	(c)
	Severance Obligation.  In the event Executive’s employment is terminated by Technologies without Cause or Executive resigns from employment with Technologies with Good Reason, following such Termination and upon execution by Executive of a general release in favor of the Company and its Subsidiaries (i) satisfying all applicable requirements of the Older Workers Benefit Protection Act, including expiration of the applicable revocation period, and (ii) releasing any and all claims against the Company and its Subsidiaries, Technologies shall pay Executive (or his estate):  (i) an amount equal to his Base Salary (as in effect on the Termination Date), plus (ii) an amount equal to the annual bonus paid or payable to Executive for the most recent completed annual bonus period prior to the Termination Date (with the aggregate amount under clauses (i) and (ii) the “Severance Amount”), with the Severance Amount to be paid to Executive in equal installments over a period of one (1) year immediately following the Termination Date, payable in accordance with Technologies’ normal payroll procedures and cycles commencing with the first payroll cycle after the Termination Date and shall be subject to withholding of applicable taxes and governmental charges in accordance with federal and state law and all unvested options, restricted stock units or other awards granted in accordance with the Stock Plan (as hereinafter defined) as of the date of this Agreement as well as those granted after the date of this Agreement (“Awards”) shall fully vest, provided that such Awards have not already accelerated under the Stock Plan.  None of the above Awards constituting options was granted at less than fair market value.  The Awards constituting options shall be exercisable within the shorter of:

		
	(x)
	three (3) years from the Termination Date; or

		
	(y)
	the remaining term of the exercise life of the respective option as of the Termination Date.

Notwithstanding the foregoing, in the event that Executive shall breach any of his material obligations under this Agreement which, if such breach is capable of cure, is not cured or remedied within fifteen (15) business days from the date on which written notice of such breach was given to Executive, Technologies shall be relieved from and shall have no further obligation to pay Executive any amounts to which Executive would otherwise be entitled pursuant to this Section 4.

		
	(d)
	Death or Permanent Disability.  If Executive’s employment with Company is terminated as a result of Executive’s death or Permanent Disability, Executive shall be entitled to the following benefits:

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	(i)
	Final Paycheck.  Payment, in a lump sum as of the Termination Date, of any and all base salary due and owing through the Termination Date, plus an amount equal to all earned but unused vacation time earned through the Termination Date and reimbursement for all reasonable expenses, less any deductions required by applicable law; and

		
	(ii)
	Bonus.  Payment, in a lump sum as of the Termination Date, of an amount equal to Executive’s annual bonus paid or payable for the most recent completed annual bonus period

		
	(iii)
	Accelerated Vesting.  All Awards shall fully vest, provided that such Awards have not already accelerated under the Stock Plan.  None of the above Awards constituting options was granted at less than fair market value.  The Awards constituting options shall be exercisable within the shorter of:

		
	1.
	three (3) years from the Termination Date; or

		
	2.
	the remaining term of the exercise life of the respective option as of the Termination Date.

		
	5.
	Sale or Change of Control:

		
	(a)
	In the event of Sale of the Company or Change of Control of Technologies which results in the Executive being offered and accepting a Management Agreement with the new owners or the new company (“NewCo”) that is substantially comparable to this Agreement, then the obligations of Technologies under this Agreement shall terminate effective on the execution of the comparable Management Agreement between the Executive and the new owners or NewCo.  The new Management Agreement will specifically include comparable compensation, management duties and responsibilities, geographical location and severance and equity award rights and terms, as set forth in this Agreement, among other things.

		
	(b)
	Termination By Company Without Cause Following a Change of Control.  If Executive’s employment with Company is terminated by Company for any reason other than for “Cause” as defined in Section 1 herein, within one (1) year following the occurrence of a “Change of Control” as defined in Section 1 herein, Executive shall be entitled to the following benefits:

		
	(i)
	Final Paycheck.  Payment, in a lump sum as of the Termination Date, of any and all base salary due and owing through the Termination Date, plus an amount equal to all earned but unused vacation time earned through the Termination Date and reimbursement for all reasonable expenses, less any deductions required by applicable law;

		
	(ii)
	Continued Payment of Salary.  Payment of Executive’s then-current base salary for a period of twelve (12) months commencing with the first payroll cycle after the Termination Date;

		
	(iii)
	Bonus.  Payment of an amount equal to the annual bonus paid or payable to Executive for the most recent completed annual bonus period prior to the Termination Date, payable in equal installments over a period of twelve (12) months commencing with the first payroll cycle after the Termination Date;

		
	(iv)
	Accelerated Vesting.  Provided that Executive’s Awards have not accelerated under the Stock Plan, then all such Awards shall fully vest;

		
	(v)
	Option Exercise.  Executive shall be entitled to exercise the Options granted herein within the shorter of:

		
	1.
	three (3) years from the Termination Date; or

		
	2.
	the remaining term of the exercise life of the Options as of the Termination Date.

		
	(vi)
	Medical and Dental Benefits.  Executive shall be entitled to elect to maintain Executive’s and his/her dependent’s health care benefit coverage to the same extent provided for by and with the same Company/Executive payment contribution percentages under Company’s group plans at the time of termination.  Such coverage shall extend for a term of one (1) year from the Termination Date unless Executive becomes covered as an insured under another employer’s or spousal health care plan.  At such time Executive shall notify Company and Company shall cease its obligation to provide for continued health care benefits coverage.  For tax purposes, this Company contribution may be considered income to the Executive.

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	(c)
	Termination By Executive for Good Reason Following a Change of Control.  Alternatively, should Executive terminate employment with Company for “Good Reason” as defined in Section 1 herein, having given the Company ninety (90) days advanced written notice of the existence of the “Good Reason” condition, and where Company has had thirty (30) days to remedy the “Good Reason” condition and has failed to do so, provided however, this has occurred within one (1) year of a “Change of Control” as defined in Section 1 herein, Executive shall be entitled to the following benefits:

		
	(i)
	Final Paycheck.  Payment, in a lump sum as of the Termination Date, of any and all base salary due and owing through the Termination Date, plus an amount equal to all earned but unused vacation time earned through the Termination Date and reimbursement for all reasonable expenses, less any deductions required by applicable law;

		
	(ii)
	Continued Payment of Salary.  Payment of Executive’s then-current base salary for a period of twelve (12) months commencing with the first payroll cycle after the Termination Date;

		
	(iii)
	Bonus.  Payment of an amount equal to the annual bonus paid or payable to Executive for the most recent completed annual bonus period prior to the Termination date, payable in equal installments over a period of twelve (12) months commencing with the first payroll cycle after the Termination Date;

		
	(iv)
	Accelerated Vesting.  Provided that Executive’s Awards have not accelerated under the Stock Plan, then all such Awards shall fully vest.

		
	(v)
	Option Exercise.  Executive shall be entitled to exercise the Options granted herein within the shorter of: 

		
	1.
	three (3) years from the Termination Date; or

		
	2.
	the remaining term of the exercise life of the Options as of the Termination Date.

		
	(vi)
	Medical and Dental Benefits.  Executive shall be entitled to elect to maintain Executive’s and his/her dependent’s health care benefit coverage to the same extent provided for by and with the same Company/Executive payment contribution percentages under Company’s group plans at the time of termination.  Such coverage shall extend for a term of one (1) year from the Termination Date unless Executive becomes covered as an insured under another employer’s or spousal health care plan.  At such time Executive shall notify Company and Company shall cease its obligation to provide for continued health care benefits coverage.  For tax purposes, this Company contribution may be considered income to the Executive.

The severance benefits provided in Section 5 are the exclusive remedies and shall not be provided in addition to those benefits provided in Section 4 of this Agreement.

		
	6.
	Notices.  All notices or communications provided for herein shall be deemed to be validly given as of the date of delivery, if delivered personally, and three days after mailing, if sent by registered or certified mail, return receipt requested, addressed to Technologies at its headquarters or executive offices or to Executive at his current home address as set forth from time to time in the records of the Company.

		
	7.
	Miscellaneous:

		
	(a)
	Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

		
	(b)
	Complete Agreement.  This Agreement embodies the complete agreement and understanding among the parties and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

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	(c)
	Counterparts.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

		
	(d)
	Governing Law.  The corporate law of the State of Delaware shall govern all issues and questions concerning the relative rights of the Company and its stockholders.  All other issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of New Jersey, without giving effect to any choice of law or conflicts of law rules or provisions (whether of the State of New Jersey or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New Jersey.

		
	(e)
	Successors and Assigns.  Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the Company and its subsidiaries and Executive and their respective successors and assigns; provided that the rights and obligations of Executive under this Agreement shall not be assignable without the prior written approval of the Board.

		
	(f)
	Remedies.  Each of the parties to this Agreement will be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including reasonable attorneys’ fees in the case where the Company has breached any obligation to provide any compensation or severance benefits or amounts to which Executive is entitled under this Agreement) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor.  The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of Section 3 of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any violations of the provisions of Section 3 of this Agreement.

		
	(g)
	Amendment and Waiver.  The provisions of this Agreement may be amended and waived only with the prior written consent of the Company and Executive.

		
	(h)
	Timing of Payments.  The payments provided for in Sections 4.(b), 4.(d)(i), 5.(b)(i), or 5.(c)(i) herein, as applicable, shall be payable immediately upon Executive’s termination or cessation of employment.  Payments provided for in Section 4(c), 4.(d)(ii)-(v), 5.(b)(ii)-(v) or 5.(c)(ii)-(v) herein, as applicable, will not begin until after Company’s receipt of a signed, unrevoked release of claims (“General Release”).  This General Release must be returned to Company within eighty (80) days, so that payments shall begin no later than ninety (90) days after the Termination Date, provided that if such 90-day period begins in one calendar year and ends in the subsequent calendar year then notwithstanding any other provision of this Agreement payment of such amounts referenced above in this Section shall begin in the subsequent calendar year.  All such payments will be subject to applicable payroll or other taxes required to be withheld by Company.  Medical and other health benefit coverage provided for in Section 5.(b)(vi) or 5.(c)(vi) shall begin on the first day of the next full month following the Termination Date with no lapse in coverage.

		
	(i)
	Subsequent Employment.  The compensation and benefits payable hereunder, with the exception of those medical and health benefits provided for under Section 5.(b)(v) or 5.(c)(v), shall not be reduced or offset by any amounts that Executive earns or could earn from any subsequent employment.

		
	(j)
	Section 280G Matters.  If the benefits described in Section 4 or 5 herein, as applicable, would otherwise constitute a parachute payment under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and but for this Section would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), Executive shall either:

		
	(i)
	pay the Excise Tax, or

		
	(ii)
	have the benefits reduced to such lesser extent as would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.

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Unless Company and Executive otherwise agree in writing, any determination required under this Section shall be made in writing by Company’s independent public accountants or other nationally-recognized accounting firm or executive compensation/consulting firm in each case as shall be reasonably selected by Executive (“Accounting/Benefits Firm”), whose determination shall be conclusive and binding upon Executive and Company for all purposes.  For purposes of making the calculations required by this Section, the Accounting/Benefits Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code.  Company and Executive shall furnish to the Accounting/Benefits Firm such information and documents as the Accounting/Benefits Firm may reasonably request in order to make a determination under this Section.  Company shall bear all fees and costs of the Accounting/Benefits Firm in connection with the calculations and determinations contemplated by this Section.

		
	(k)
	Specified Employee.

		
	(i)
	“Specified Employee” is an Executive who, as of the Termination Date, is a key employee of the Company within the meaning of Section 416(i)(1)(A)(i), (ii), or (iii) of the Code (applied in accordance with the regulations thereunder and disregarding Section 416(i)(5)) at any time during the twelve (12) month period ending on a Specified Employee Identification Date.  If an Executive is a key employee as of a Specified Employee Identification Date, the Executive is treated as a key employee for purposes of the Agreement for the entire twelve (12) month period beginning on the Specified Employee Effective Date.

		
	(ii)
	“Specified Employee Effective Date” is the date as set forth in Treasury Regulation Section 1.409A-1(i)(4).

		
	(iii)
	“Specified Employee Identification Date” shall mean December 31st of each year.

Anything in this Agreement to the contrary notwithstanding, if at the time of the Termination Date, the Executive is considered a “Specified Employee”, and if any payment that the Executive becomes entitled to under this Agreement is considered deferred compensation subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earlier of (1) six (6) months after the Executive’s separation from service, or (2) the Executive’s death, if and to the extent the delay in such payment is necessary to comply with the requirements of Section 409A of the Code and the regulations and interpretive guidance thereunder taking into account the extent to which such payments are exempt from Section 409A of the Code by virtue of the short-term deferral rule under Treas. Reg. Section 1.409A-1(b)(4) and/or the separation pay exception under Treas. Reg. Section 1.409A-1(b)(9)(iii).  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

		
	(l)
	Code Section 409A.  In order to avoid any ambiguity and to further clarify the understanding of the parties as to this Agreement, the parties intend that this Agreement comply with Section 409A of the Code and all regulations or other interpretative guidance issued thereunder, and that the payments of any benefits or amounts thereunder and the interpretation of this Agreement will be operated and administered accordingly. For purposes of clarification and for avoidance of ambiguity, (i) references to termination of employment, retirement and similar terms used in this Agreement are intended to refer to “separation from service” within the meaning of Section 409A of the Code to the extent necessary to comply with Section 409A of the Code (applying the default rules contained therein); (ii) the Company acknowledges that, for purposes of Section 409A of the Code, each and every payment under this Agreement shall, to the extent permitted by Section 409A of the Code, be deemed a separate payment and not a series of payments; (iii) to the extent that the reimbursement of any cost or expense or the provision of any in-kind benefits to or for the benefit of Executive is subject to Section 409A of the Code, the amount of such cost or expense eligible for reimbursement, or in-kind benefits to be provided, during any one calendar year shall not affect the amount of such cost or expense eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, reimbursement of any such cost or expense shall be made by no later than December 31 of the year following the calendar year in which such cost or expense is incurred, and Executive’s right to receive such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. 

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	8.
	Stock Option Grant.  Pursuant to the Rudolph Technologies 1999 Stock Plan (as such equity plan may be and has been amended and also including all successor or additional equity compensation plans of the Company, collectively “Stock Plan”) and subject to the terms and conditions set forth in this Agreement, the Company granted to Executive the right and option (the “Option”) to purchase from the Company fifty-six thousand (56,000) shares of Company common stock.  The date of grant of this Option was the date on which the grant of such Option was approved by the Company’s Board of Directors (“Grant Date”).  The Options shall have a term of ten (10) years and shall vest as follows:  twenty percent (20%) of the Options subject to the grant (rounded down to the next whole number of Options) on each of the first five (5) anniversaries of the Grant Date.  The Options shall constitute non-qualified stock options.

		
	9.
	Resolution of Disputes. Any controversy or claim or defense arising out of or relating to this Agreement or any breach or asserted breach hereof (other than seeking equitable relief such as specific performance and/or injunctive relief), shall be resolved by binding arbitration before a single arbitrator (who shall be a former New Jersey state or federal judge), to be held in Newark, New Jersey in accordance with the rules and procedures of the Rules for the Resolution of Employment Disputes of the American Arbitration Association.  Judgment upon any award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  The cost of the arbitrator shall be paid by the Company.

		
	10.
	Jurisdiction.  Subject to Section 11 above, the Company and Executive each hereby consent to the exclusive jurisdiction of any or all of the following courts for purposes of resolving any dispute under this Agreement: (i) the United States District Court for New Jersey or (ii) any of the courts of the State of New Jersey.  Each of the parties irrevocably consents to the service of any summons and complaint and all other process or notice in any such proceeding by certified mail, return receipt requested or by hand delivery or by such other method of service of process or notice as permitted under such court procedures or court rules.  The Company and Executive hereby waive, to the fullest extent permitted by applicable law, any objection which it or he may now or hereafter have to such jurisdiction and any defense of inconvenient forum.

		
	11.
	Survival. Any provision of or obligation under this Agreement which contemplates performance or observance subsequent to termination or expiration of this Agreement, shall survive any such termination or expiration of this Agreement and shall continue in effect.

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

EXECUTIVE

By: ____/s/ Steven R. Roth                        
Name: _Steven R. Roth_________________

Title: _CFO__________________________

RUDOLPH TECHNOLOGIES, INC.

By: _ ________/s/ Paul F. McLaughlin___

Name: _Paul F. McLaughlin___________

Title: _Chairman & CEO______________

96.30.2014 EX 10.3

Exhibit 10.3
 

RESTATED AND AMENDED EMPLOYMENT AGREEMENT

This Agreement is entered into by and between August Technology Corporation (“August Technology”), a Minnesota corporation, with its principal place of business at 4900 West 78th Street, Bloomington, Minnesota 55435, and Michael Plisinski of [Address]. (“Employee”).  This Agreement has been restated and amended effective as of July 29, 2014.  For all purposes of the Agreement, reflecting the merger of August Technology with and into Rudolph Technologies, Inc. effective as of February 15, 2006, references in the Agreement to August Technology or the Company shall mean Rudolph Technologies, Inc.

WHEREAS, Employee desires employment with Company or has been employed with Company and wishes to continue employment under the terms and conditions set forth in this Agreement;

WHEREAS, Employee acknowledges and agrees that he has and will continue to have access to confidential, proprietary and trade secret information in the course of his employment and continued employment with Company, the unauthorized use or disclosure of which would cause irreparable harm to Company;

WHEREAS, Company and Employee wish to set forth the terms of their agreement in writing;

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein and for other good and valuable consideration the receipt and sufficiency of which is specifically acknowledged by the parties, Company and Employee agree as follows:

1.Employment.  Company agrees to employ or continue to employ Employee, effective April 22, 2005 and Employee accepts employment or continued employment, upon the terms and conditions set forth in this Agreement.

2.Term of Employment.  Company shall continue to employ Employee for an indefinite duration until his employment is terminated in accordance with Paragraph 8 of this Agreement.

3.Duties and Responsibilities.  Employee shall devote his time, attention and best efforts to the duties and responsibilities of his position, and to the business and affairs of Company.  Employee’s title shall be as set forth in Exhibit A as “Employee’s Title”, reporting to the person or office as set forth in Exhibit A as “Manager”.  Employee shall perform all duties and responsibilities of the position he holds with Company as those duties and responsibilities may change from time to time.  Employee shall comply with Company’s standards, policies and procedures in effect and as they may change from time to time; provided that to the extent such policies and procedures are inconsistent with this Agreement, the provisions of this Agreement shall control.

4.Compensation.  Company shall pay Employee a gross annual salary as set forth in Exhibit A as “Base Salary”, less appropriate payroll deductions.  Employee may also receive incentive compensation in accordance with the Annual Incentive Plan, as issued and as may change from time to time by the Company, or any other similar plan authorized by the Board of Directors.  Employee’s compensation may be periodically increased or adjusted as authorized by the Board of Directors in the case of the Chief Executive Officer, or, in the case of all others, as recommended by the Chief Executive Officer and approved by the Board of Directors.

5.Business Expenses.  Company will, in accordance with its policies and practices as such may change from time to time, reimburse Employee for all ordinary and necessary business expenses after receipt of appropriate documentation of such expenses.

6.Benefits.  Employee shall be entitled to insurance and other benefits provided to key management employees in accordance with applicable plan documents and commensurate with vice president and higher positions within the Company.  Benefits provided to employees are subject to change in the discretion of Company.

7.Stock Options.  At the discretion of Company, Employee may be granted stock options from time to time, which options shall be subject to the terms and conditions of the Rudolph Technologies 2009 Stock Plan, as amended from time to time, or any successor plan, and the related stock option agreements.  Further, Employee shall be eligible to participate in the Rudolph Technologies 2009 Employee Stock Purchase Plan, as amended from time to time, or any successor plan, subject to the terms and conditions contained therein.

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8.Termination.  Employee’s employment under this Agreement may be terminated:

		
	(a)
	At any time upon mutual written agreement of the parties;

		
	(b)
	By either Employee or Company at any time, with or without cause, upon thirty (30) days’ written notice to the other;

		
	(c)
	By Company immediately upon notice to Employee for cause which shall be defined as:

		
	(1)
	Employee’s material failure or neglect, or refusal to perform, the duties and responsibilities of his position and/or the reasonable direction of the Board of Directors or his superiors;

		
	(2)
	Commission by Employee of any willful, intentional or negligent act that has the effect of injuring the reputation, business or performance of Company;

		
	(3)
	Employee’s conviction of a crime, or commission of any act involving moral turpitude;

		
	(4)
	Any material default or nonperformance of the terms of this Agreement, or any violation of Paragraphs 10, 11, 12, 14 and/or 15 of this Employment Agreement; or

		
	(d)
	Immediately upon Employee’s death.

Upon Employee’s resignation or termination under this Paragraph 8 for any reason, Company shall pay Employee his Base Salary through the Employee’s last date of employment, and any accrued and unused vacation or other paid time off through the Employee’s last date of employment.  Employee’s entitlement to any vested pension, profit sharing or other benefits shall be governed by applicable plan documents.  In the event Employee’s employment is terminated either by Employee or Company under Paragraph 8(b), Company may elect, in its sole discretion, to pay Employee his salary for the thirty (30) day notice period in lieu of Employee’s continued performance of duties during the notice period.  In the event Employee is terminated by Company in accordance with Paragraph 8(b) above, without cause, Company shall, in addition to the above, pay Employee a severance at his then current Base Salary rate for the time period set forth in Exhibit A as “Severance Period”, to be paid according to the normal payroll schedule, directly following the thirty (30) day notice period, and Company shall, if the Employee elects to continue group health or other group benefits as allowed by COBRA, make the COBRA payments for the Severance Period.  Employee shall not be entitled to any further or other payments or benefits of any kind upon the Employee’s termination or resignation under this Paragraph 8.  In the event, Employee is entitled to Change in Control benefits as set forth in Paragraph 9, Employee shall not be entitled to any severance or notice rights under this Paragraph 8.

9.Change in Control.  If, within eighteen (18) months following a Change in Control (as defined below), Employee’s employment is Terminated (as defined in Paragraph 9(f) below), then:

		
	(a)
	Employee shall be paid his last Base Salary on a regular payroll cycle as of the effective date for the time period as set forth in Exhibit A as “Change In Control Severance Period” from the effective date of such termination;

		
	(b)
	For the same Change In Control Severance Period from the effective date of such termination as set forth in Paragraph 9(b), the Company shall, if Employee elects to continue group health or other group benefits as allowed under COBRA, make the COBRA payments for the Change In Control Severance Period;

		
	(c)
	All unvested options, restricted stock units or other equity awards granted in accordance with the Stock Plan (as hereinafter defined) as of the date of this Amendment as well as those granted after the date of this Amendment (“Awards”) shall fully vest and options will immediately be fully exercisable and other Awards will be paid within sixty (60) days of such termination, provided that such Awards have not already vested under the Rudolph Technologies 1999 Stock Plan or the Rudolph Technologies 2009 Stock Plan, as applicable (each as amended to date and including all successor and additional equity compensation plans of the Company, collectively the “Stock Plan”); and

		
	(d)
	Limitation on Change of Control Payments.  Employee shall not be entitled to receive any Change of Control Action, as defined below, which would constitute an “excess parachute payment” for purposes of Code Section 280G, or any successor provision, and the regulations thereunder.  In the event any Change of Control Action payable to Employee would constitute an “excess parachute payment,” then the acceleration 

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of the exercisability of such stock options, the accelerated vesting of other Awards and the payments to such Participant pursuant to this Paragraph 9 shall be reduced to the largest extent or amount as will result in no portion of such payments being subject to the excise tax imposed by Section 4999 of the Code.  For purposes of this Paragraph 9, a “Change of Control Action” shall mean any payment, benefit or transfer of property in the nature of compensation paid to or for the benefit of Employee under any arrangement which is considered contingent on a Change of Control for purposes of Code Section 280G, including, without limitation, any and all salary, bonus, incentive, restricted stock, stock option, compensation or benefit plans, programs or other arrangements, and shall include benefits payable under this Agreement.

		
	(e)
	“Change of Control”. For purposes of this Agreement, “Change of Control” shall mean any of the following events occurring after the date of this Agreement:

		
	(1)
	A merger or consolidation to which the Company is a party, an acquisition by the Company involving the issuance of the Company’s securities as consideration for the acquired business, or any combination of fully closed and completed mergers, consolidations or acquisitions during any consecutive twenty-four (24) month period, if the individuals and entities who were shareholders of the Company immediately prior to the effective date of such merger, consolidation, or acquisition (or prior to the effective date of the first of a combination of such transactions) have, immediately following the effective date of such merger, consolidation or acquisition (or following the effective date of the last of a combination of such transactions), beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of less than fifty percent (50%) of the total combined voting power of all classes of securities issued by the surviving corporation for the election of directors of the surviving corporation;

		
	(2)
	The acquisition of direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of securities of the Company by any person or entity or by a group of associated persons or entities acting in concert in one or a series of transactions, which causes the aggregate beneficial ownership of such person, entity or group to equal or exceed twenty percent (20%) or more of the total combined voting power of all classes of the Company’s then issued and outstanding securities;

		
	(3)
	The sale of the properties and assets of the Company substantially as an entirety, to any person or entity which is not a wholly-owned subsidiary of the Company;

		
	(4)
	The stockholders of the Company approve any plan or proposal for the liquidation of the Company; or

		
	(5)
	A change in the composition of the Board of the Company at any time during any consecutive twenty-four (24) month period such that the “Continuity Directors” no longer constitute at least a seventy percent (70%) majority of the Board.  For purposes of this event, “Continuity Directors” means (i) those members of the Board who were directors at the beginning of such consecutive twenty-four (24) month period or at the date of this Agreement if this Agreement was entered into less than twenty-four months prior to the change in composition of the Board; and (ii) any new director whose election to the Board of Directors or nominations for election to the Board of Directors was approved by a vote of at least two-thirds (2/3) of the directors identified in the immediately preceding clause (i).

		
	(6)
	The Company enters into a letter of intent, an agreement in principle or a definitive agreement relating to an event described in Paragraph 9(e)(1), 9(e)(2), 9(e)(3), 9(e)(4), or 9(e)(5) that ultimately results in such a Change of Control, or a tender or exchange offer or proxy contest is commenced that ultimately results in an event described in Paragraph 9(e)(2) or 9(e)(5).

Provided, however, that any transaction or other event described in clauses (1) through(6) above shall not be deemed to constitute a Change of Control under this Agreement unless such transaction or event constitutes a “change in control” under Section 409A of the Internal Revenue Code (“Code”) and the regulations and interpretative guidance thereunder.

		
	(f)
	Termination.  For purposes of this Paragraph 9, “Termination” shall mean any of the following events occurring within eighteen (18) months after a Change of Control:

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	(1)
	The termination of Employee’s employment by the Company for any reason, with or without cause, except for termination resulting from conduct by Employee constituting (a) a felony involving moral turpitude under either federal law or the law of the State of Minnesota, or (b) Employee’s willful failure to fulfill his employment duties with the Company; provided, however, that for purposes of this clause (b), an act or failure to act by Employee shall not be “willful” unless it is done, or omitted to be done, in bad faith and without any reasonable belief that Employee’s action or omission were in the best interests of the Company; or

		
	(2)
	The termination of employment with the Company by Employee for Good Reason.  Such termination shall be accomplished by, and effective upon, Employee giving written notice to Company of his decision to terminate.  “Good Reason” shall mean a good faith determination by Employee, in Employee’s sole and absolute judgment, that any one or more of the following events has occurred, at any time during the term of this Agreement or after a Change of Control; provided, however, that such event shall not constitute “Good Reason” if Employee has expressly consented to such event in writing or if Employee fails to provide written notice of his decision to terminate within sixty (60) days of the occurrence of such event:

		
	(a)
	A material change in Employee’s reporting responsibilities, titles or offices, or any removal of Employee from or any failure to re-elect Employee to any of such positions, which has the effect of materially diminishing Employee’s responsibility or authority;

		
	(b)
	A reduction by the Company in Employee’s base salary (as increased from time to time);

		
	(c)
	A requirement imposed by the Company on Employee that results in Employee being based at a location that is outside of a twenty-five (25) mile radius of Employee’s prior job location;

		
	(d)
	Without the adoption of a replacement plan, program or arrangement that provides benefits to Employee that are equal to or greater than those benefits that are discontinued or adversely affected:

		
	i.
	A failure by the Company to continue in effect, within its maximum stated term, any pension, bonus, incentive, stock ownership, stock purchase, stock option, life insurance, health, accident, disability, or any other employee compensation or benefit plan, program or arrangement, in which Employee is or has been participating;

		
	ii.
	The taking of any action by the Company that would adversely affect Employee’s participation or materially reduce Employee’s benefits under any of such plans, programs or arrangements; or

		
	(e)
	Any action by the Company that would materially adversely affect the physical conditions in or under which Employee performs his employment duties; or

		
	(f)
	Any material breach by the Company of this Employment Agreement between Employee and the Company.

Termination for “Good Reason” shall not include Employee’s death or a termination for any reason other than the events specified in clauses (a) through (f) above.

10.Confidential Information.  During the term of this Agreement and at all times thereafter, Employee shall not directly or indirectly use or disclose any trade secret, proprietary or confidential information of Company or any subsidiary for the benefit of any person or entity other than Company or any subsidiary without prior written approval of Company’s Board of Directors.  For purposes of this Agreement, in addition to all materials and information protected by applicable statute or law, the parties acknowledge that confidential information shall include any information, whether in print, on computer disc or tape or otherwise, which is not public information and which relates to Company or any subsidiary, or Company’s or any subsidiary’s existing or reasonably foreseeable business, including but not limited to information relating to research, development, technology, manufacturing processes, purchasing and sales, information relating to sales and other financial strategies, plans and/or goals, information relating to proprietary rights and data, ideas, know-how, and/or trade secrets, information regarding the identity and/or needs of clients or customers, client or 

4

customer lists and other client or customer information, information regarding active and inactive accounts of Company or any subsidiary, and information relating to Company’s or any subsidiary’s methods of operation.

11.Noncompetition Obligations.  As a condition to and in consideration of his employment and continued employment, participation in and payment under the Key Executive Bonus Plans of Company and in exchange for the severance and Change of Control provisions as set forth in Paragraphs 8 and 9 of this Employment Agreement, and the mutual covenants herein, Employee agrees that, during his employment and for a period of one (1) year following his voluntary or involuntary resignation or termination for any reason, the Employee will not, on behalf of himself or any other person or entity:

		
	(a)
	Directly or indirectly solicit, on Employee’s own behalf, or on behalf of another, any of Company’s or any subsidiary’s customers or potential customers with whom Employee or Employee’s supervisees had contact, either directly or indirectly, within the twelve months immediately preceding Employee’s resignation or termination of employment, for the purpose of providing, selling, or attempting to sell any products or services competing with those provided or sold by Company or any subsidiary, or clearly contemplated thereby due to research, development, engineering, applications, licensing, or other like projects in process, at the time of resignation or termination; or

		
	(b)
	Hire or attempt to hire, or influence or solicit, or attempt to influence or solicit, either directly or indirectly, any employee of Company or any subsidiary to leave or terminate his or her employment, or to work for any other person or entity.

		
	(c)
	Directly or indirectly, whether as sole proprietor, partner, silent partner, venturer, stockholder, director, officer, consultant or employee or agent, engage or participate in any employment or activity which involves the sale, distribution, design and/or manufacturing of precision film thickness measurement instruments, defect and yield metrology tools or data analysis systems for use in the semiconductor manufacturing industry or is otherwise competitive with Company’s business within the United States; and

		
	(d)
	Directly or indirectly, whether as sole proprietor, partner, silent partner, venturer, stockholder, director, officer, consultant or employee or agent, engage or participate in any employment or activity which may cause him to use or disclose, either intentionally or inadvertently, Company’s confidential information.

12.Work Product and Inventions.  Company shall be entitled to all of the benefits, profits, results and work product arising from or incident to all work, services, advice and activities of Employee, including without limitation all rights in inventions (as set forth below), trademark or trade name creations, and copyrightable materials.    Employee shall not, during the term of his employment by Company, be interested, directly or indirectly, in any manner, including, but not limited to, as partner, officer, advisor, or in any other capacity in any other business similar to, or in competition with, Company’s or any subsidiary’s business.

Employee agrees to communicate promptly and fully to Company all inventions, discoveries, improvements or designs conceived or reduced to practice by Employee during the period of his employment with Company (alone or jointly with others), and, except as provided in this Paragraph 12, Employee will and hereby does assign to Company and/or its nominees all of the Employee’s right, title and interest in such inventions, discoveries, improvements or designs and all of his right, title and interest in any patents, patent applications or copyrights based thereon without obligation on the part of Company or any subsidiary to make any further compensation, royalty or payment to Employee.  Employee further agrees to assist Company and/or its nominee (without charge but at no expense to Employee) at any time and in every proper way to obtain and maintain for its and/or their own benefit, patents for all such inventions, discoveries and improvements and copyrights for all such designs.

This Agreement does not obligate Employee to assign to Company any invention, discovery, improvement or design for which no equipment, supplies, facility or trade secret information of Company or any subsidiary was used and which was developed entirely on Employee’s own time, and (1) which does not relate (a) directly to the business of Company or any subsidiary, or (b) to Company’s or any subsidiary’s actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by Employee for Company or any subsidiary.

13.Exempt Inventions.  Identified under Exempt Inventions in Exhibit A by descriptive title are all of the Inventions, if any, in which Employee possesses any right, title or interest prior to Employee’s employment with Company or execution of this Employment Agreement which are not subject to the terms hereof.

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14.Copyrights.  Employee acknowledges that any documents, drawings, computer software or other work of authorship prepared by Employee within the scope of his employment is a “work made for hire” under U.S. copyright laws and that, accordingly, Company exclusively owns all copyright rights in such works of authorship.  For purposes of this paragraph, “scope of employment” means that the work of authorship (a) relates to any subject matter pertaining to his employment, (b) relates to or is directly or indirectly connected with the existing or reasonably foreseeable business, products, projects or confidential information of Company or any subsidiary, or (c) involves the use of any time, material or facility of Company or any subsidiary.

15.Return of Property.  Employee shall, immediately upon his involuntary or voluntary resignation or termination from employment for any reason, deliver to Company all documents and other items, whether on computer disc or tape or otherwise, including all copies thereof, belonging to Company or any subsidiary or in any way related to the business of Company or any subsidiary or the services Employee performed for Company or any subsidiary, including but not limited to any documents or items containing trade secret, proprietary, or confidential information, documents in any way relating to any inventions or copyrights, client or customer information, information relating to Company’s or any subsidiary’s processes or procedures and any other materials or documents of any sort relating to Company or any subsidiary.  Employee shall not retain any copies or summaries of any kind of documents and materials covered by this Paragraph 15.

16.Remedy upon Violation.  Employee and Company agree that a breach or threatened breach of Paragraphs 10, 11, 12, 14 or 15 would cause irreparable harm to Company and/or its subsidiaries, and that monetary damages alone would not be an adequate remedy.  Employee agrees that Company and any subsidiary shall be entitled, in addition to any other remedy it may have at law or in equity, to an injunction, without the posting of a bond if allowed by applicable law or with the posting of a minimal bond if required, enjoining or restraining Employee from any violation or violations or threatened violation or violations of Paragraphs 10, 11, 12, 14 and 15, and/or for specific performance of duties and obligations under such paragraphs, and Employee hereby consents to the issuance of such injunction.  If any rights or restrictions contained in Paragraphs 10, 11, 12, 14 and 15 shall be deemed to be unenforceable by reason of the extent, duration or geographic scope, or other provision thereof, the parties contemplate that the Court shall reduce such extent, duration or geographic scope or other provision and enforce Paragraphs 10, 11, 12, 14 and 15 in their reduced form for all purposes in the manner contemplated by such Paragraphs.

17.Other Agreements.  By Employee’s signature to this Agreement, Employee warrants that he is not subject to any employment, noncompetition, confidentiality, inventions or other obligations or agreements which would prevent or restrict the Employee in any way from accepting employment with Company and fully performing his duties and responsibilities as described in this Agreement.  Employee, by his signature to this Agreement, further warrants that he has not taken and will not take any trade secret, proprietary or confidential information of any former employer, and will not use or disclose any such information to anyone in the performance of duties and responsibilities under this Agreement.

18.Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and assigns of Company.

19.Notices.  All notices and other communications to be given under this Agreement shall be in writing and shall be deemed to be given when delivered personally, or when mailed by registered or certified mail or overnight courier, addressed to the party to whom such notice is intended to be given, at the last known address for that party or at such other address as the party may specify by written notice.

		
	(a)
	In the case of Company, the notice shall be provided to: 

Rudolph Technologies, Inc.
One Rudolph Road
Flanders, New Jersey 07836
Attn:  Chief Executive Officer

		
	(b)
	In the case of Employee, the notice shall be provided to:

Michael Plisinski
[Address]

6

Either party may, by written notice hereunder, designate a change of address.  Any notice, if mailed properly addressed, postage prepaid, registered or certified mail, shall be deemed dispatched on the registered date or that stamped on the certified mail receipt, and shall be deemed received within the fifth business day thereafter, or when it is actually received, whichever is sooner.

20.Survival of Provisions.  Employee acknowledges and agrees that the restrictions and obligations set forth in Paragraphs 10, 11, 12, 13, 14, 15 and 16 of this Agreement are reasonable, shall survive his resignation from or the termination of his employment, and shall apply to him whether his resignation or termination from employment is voluntary or involuntary and regardless of the reason for such resignation or termination.

21.Nonwaivers.  No failure on the part of either party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any right or remedy granted hereby or by any related document or by law.

22.Governing Law.  This Agreement shall be construed and interpreted according to the laws of the State of Minnesota, without reference to its conflict of laws provisions.

23.Paragraph Headings.  Paragraph headings are included in this Agreement for convenience of reference only, and are not intended to be full or accurate descriptions of the contents hereof.

24.Counterparts.  This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which shall constitute one (1) and the same instrument.

25.Entire Agreement.  This Agreement states the entire Agreement of the parties on the subjects set forth herein, and merges and supersedes all prior agreements and understandings between the parties.  No modification, termination, or attempted waiver of any provision of this Agreement will be valid unless it is made in writing and signed by the party against whom the same is sought to be enforced, and is specifically identified as a modification, termination, release, waiver or discharge of this Agreement.  If any term, clause or provision of this Agreement shall for any reason be adjudged invalid, unenforceable or void, the same shall not impair or invalidate any of the other provisions contained herein, all of which shall be performed in accordance with their respective terms.

26.General Release.  All post-employment termination compensation and benefits arising as a result of termination pursuant to Paragraph 8(b) or 9 hereof, as applicable, are in consideration for Employee’s execution of a general release (“General Release”) of all known and unknown claims that Employee may then have against Company and its officers, directors, employees and affiliates, a form of which is available from Company.  If Employee does not properly execute such General Release, the parties expressly acknowledge and agree that Employee will not be entitled to any of the post-employment termination compensation and benefits provided as a result of termination pursuant to Paragraph 8(b) or 9 hereof, as applicable.

27.Code Section 409A.  In order to avoid any ambiguity and to further clarify the understanding of the parties as to this Agreement, the parties intend that this Agreement comply with Section 409A of the Code and all regulations or interpretive guidance issued thereunder, and that the payment of any benefits or amounts thereunder and the interpretation of this Agreement will be operated and administered accordingly, provided, however, that the Company makes no representation or warranty to Employee that this Agreement or the payment of any amounts or benefits hereunder will in fact comply with Section 409A of the Code.  The parties each acknowledge that as of the date of this Amendment all severance amounts and benefits which would be payable under this Agreement would be exempt from Section 409A of the Code by reason of the severance pay exception under Treas. Reg. 1.409A-1(b)(9)(iii).  For purposes of clarification and for the avoidance of ambiguity,

		
	(a)
	Employee agrees that if, at the time of termination of employment, Employee is considered to be a specified employee as defined in Section 409A of the Code (as determined as of December 31 preceding the termination of employment, unless the termination of employment occurs prior to April 1, in which case the determination will be made as of the second preceding December 31), then such payments as are to be made under any of such agreements as a result of Employee’s termination of employment will be delayed until the first business day following the date that is six months and a day following such termination of employment (or, if earlier, the date of Employee’s death), if and to the extent the delay in such payments is necessary in order to comply with the requirements of Section 409A of the Code, taking into account the extent to which such payments 

7

are exempt from Section 409A of the Code by virtue of the short-term deferral rule under Treas. Reg. Sec. 1.409A-1(b)(4) and/or the severance pay exception under Treas. Reg. Sec. 1.409A-1(b)(9)(iii).

		
	(b)
	In the event that any payment is determined to be payable to Employee under this Agreement and under this Agreement such payment is conditioned upon Employee executing (and not thereafter revoking) a release of claims, then if the period during which Employee is entitled to consider the release of claims (and to revoke the release, if applicable) spans two calendar years, then any payment that otherwise would have been payable during the first calendar year will in no case be made until the later of (i) the end of any revocation period (assuming that Employee does not revoke), or (ii) the first business day of the second calendar year (regardless of whether Employee used the full time period allowed for consideration), all as required for purposes of Section 409A of the Code.

		
	(c)
	References to termination of employment and similar terms used in this Agreement are intended to refer to “separation from service” within the meaning of Section 409A of the Code to the extent necessary to comply with Section 409A of the Code (applying the default rules contained therein).

		
	(d)
	The Company acknowledges that, for purposes of Section 409A of the Code, each and every payment under this Agreement shall, to the extent permitted by Section 409A of the Code, be deemed a separate payment and not a series of payments.

		
	(e)
	To the extent that the reimbursement of any cost or expense or the provision of any in-kind benefits to or for the benefit of Employee is subject to Section 409A of the Code, the amount of such cost or expense eligible for reimbursement, or in-kind benefits to be provided, during any one calendar year shall not affect the amount of such cost or expense eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, reimbursement of any such cost or expense shall be made by no later than December 31 of the year following the calendar year in which such cost or expense is incurred, and Employee’s right to receive such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

RUDOLPH TECHNOLOGIES, INC.

Dated:  July 29, 2014                By:   Paul F. McLaughlin                              
Its:  Chairman & CEO                                   

Dated: July 29, 2014                By:   Michael P. Plisinski                            
Employee

                    

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EXHIBIT A

Employee’s Name    =    Michael Plisinski

Employee’s Title      =      VP & General Manager, Data Analysis and Review Business Unit

Manager            =    Chief Executive Officer

Base Salary (2014)    =    $289,261

Severance Period        =    twelve (12) months

Change In Control 
Severance Period        =    eighteen (18) months

Exempted Inventions    =             

Initials of approval of Exhibit:    RUDOLPH TECHNOLOGIES, INC.    PFM

EMPLOYEE                MPP

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}]]