Document:

Form of Executive Severance Agreement

 Exhibit 10.1 
 EXECUTIVE SEVERANCE AGREEMENT 
 BETWEEN 
 BRUCE CRAWFORD 
 AND 
 NANOMETRICS INCORPORATED 
 This Executive Severance Agreement (the “Severance
Agreement”) is made and entered into this         th day of July 2007 by and between Bruce Crawford (“Mr. Crawford”) and Nanometrics Incorporated (the “Company”), a
Delaware corporation. 
 WHEREAS, Mr. Crawford is Chief Operating Officer of the Company, and 
 WHEREAS, the Board of Directors of the Company has approved this Severance Agreement to provide a degree of financial security and income protection to
Mr. Crawford in the event of his involuntary termination without Cause (as defined herein). 
 NOW, THEREFORE, the parties hereby agree
as follows: 
 1.    This Severance Agreement is intended solely to set out the parties’ understanding with respect
to the involuntary separation without Cause of Mr. Crawford and is not intended to constitute a contract of employment for any period of time. Mr. Crawford understands that he is, and following the execution of this Severance Agreement,
remains an, at-will employee of the Company and may be terminated at any time with or without cause or notice. 
 2.    In the event Mr. Crawford’s employment with the Company terminates for any reason, Mr. Crawford will be entitled to any (a) unpaid base salary accrued up to the effective date of termination;
(b) pay for accrued but unused vacation; (c) benefits or compensation as provided under the terms of any employee benefit and compensation agreements or plans applicable to Mr. Crawford; (d) unreimbursed business expenses
required to be reimbursed to Mr. Crawford; and (e) rights to indemnification Mr. Crawford may have under the Company’s Certificate of Incorporation, Bylaws or separate indemnification agreement, as applicable. In addition,
depending on the reason for termination, Mr. Crawford may be entitled to the additional amounts and benefits specified in Section 3 of this Severance Agreement. 
 3.    In the event that Mr. Crawford’s employment with the Company is terminated by the Company without Cause on or after the date hereof, effective as of the date of separation from
employment and subject to Sections 4 through 8 of this Severance Agreement, the vesting of each outstanding equity award relating to shares of the Company’s common stock shall accelerate and become immediately exercisable as to that number
of shares that would have vested had Mr. Crawford remained an employee of the Company through the twelve-month anniversary of the date 

  

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of separation from employment. In addition, in the event that Mr. Crawford’s employment with the Company is terminated by the Company without Cause
on or after the date hereof, the Company agrees, effective as of the date of separation from employment and subject to Sections 4 through 8 of this Severance Agreement, as a separation payment, (i) to pay to Mr. Crawford his annual
salary (as in effect immediately prior to such separation from employment), but no bonuses, on the Company’s normal paydays for a period of six (6) months from the date of separation from employment and (ii) to reimburse
Mr. Crawford for his premium payments under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for a period of one (1) year from the date of separation from employment. If Mr. Crawford’s separation is for
Cause, he shall be due no separation payment or reimbursement of COBRA premium payments and will not benefit from the equity award acceleration referenced herein. 
 4.    Notwithstanding anything in this Severance Agreement to the contrary, reimbursement for premiums paid under COBRA pursuant to this Severance Agreement shall be paid only if Mr. Crawford
validly elects to continue coverage under COBRA and shall be reimbursed only until the earlier of (i) the termination date set forth in Section 3 of this Severance Agreement; (ii) the date upon which Mr. Crawford and
Mr. Crawford’s eligible dependents become otherwise covered under similar plans; (iii) the date upon which Mr. Crawford and Mr. Crawford’s eligible dependents cease to be eligible for coverage under COBRA. 

5.     Notwithstanding anything to the contrary in this Severance Agreement, if Mr. Crawford is a “specified
employee” within the meaning of Section 409A of the Code and any final regulations and guidance promulgated thereunder (“Section 409A”) at the time of Mr. Crawford’s separation from employment, then any severance
payments payable pursuant to this Severance Agreement and any other severance payments or separation benefits which may be considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”)
otherwise due to Mr. Crawford on or within the six (6) month period following Mr. Crawford’s separation from employment will accrue during such six (6) month period and will become payable in a lump sum payment on the date
six (6) months and one (1) day following the date of Mr. Crawford’s separation from employment. All subsequent payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. It is
the intent of this Severance Agreement to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any
ambiguities herein will be interpreted to so comply. 
 6.    The severance payments and benefits provided herein shall
be conditioned on the following: 
 (a)    The receipt of any severance or other benefits pursuant to this Severance
Agreement will be conditioned upon (i) Mr. Crawford signing and not revoking a release of claims in a form acceptable to the Company; (ii) Mr. Crawford’s promptly resigning from all positions with the Company as requested;
and (iii) Mr. Crawford continuing to comply with the terms of any Confidential Information Agreement by which he is then bound. No severance or other benefits will be paid or provided until the release agreement becomes effective.

  

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 (b)    During the period of Mr. Crawford’s employment with the Company and
the Continuance Period (as defined herein), Mr. Crawford will not knowingly and materially disparage, criticize, or otherwise make any derogatory statements regarding the Company or any officer, director or agent of the Company. Notwithstanding
the foregoing, nothing contained in this Severance Agreement will be deemed to restrict Mr. Crawford, the Company or any of the Company’s current or former officers and/or directors from providing information to any governmental or
regulatory agency (or in any way limit the content of any such information) to the extent they are requested or required to provide such information pursuant to applicable law or regulation. 
 (c)    Mr. Crawford acknowledges that the nature of the Company’s business is such that if Mr. Crawford were to become
employed by, or substantially involved in, the business of a competitor of the Company during the twelve (12) months following the termination of Mr. Crawford’s employment with the Company, it would be very difficult for
Mr. Crawford not to rely on or use the Company’s trade secrets and confidential information. Thus, to avoid the inevitable disclosure of the Company’s trade secrets and confidential information, Mr. Crawford agrees and
acknowledges that Mr. Crawford’s right to receive the separation payments set forth in Section 3 of this Severance Agreement (to the extent Mr. Crawford is otherwise entitled to such payments) shall be conditioned upon
Mr. Crawford not directly or indirectly engaging in (whether as an employee, consultant, agent, proprietor, principal, partner, stockholder, corporate officer, director or otherwise), nor having any ownership interested in or participating in
the financing, operation, management or control of, any person, firm, corporation or business that competes with Company or is a customer of the Company. Upon any breach of this section, all severance payments pursuant to this Severance Agreement
shall immediately cease. 
 (d)    Until the date one (1) year after the termination of Mr. Crawford’s
employment with the Company for any reason, Mr. Crawford agrees and acknowledges that Mr. Crawford’s right to receive the separation payments set forth in Section 3 of this Severance Agreement (to the extent Mr. Crawford is
otherwise entitled to such payments) shall be conditioned upon Mr. Crawford not either directly or indirectly soliciting, inducing, attempting to hire, recruiting, encouraging, taking away, hiring any employee of the Company or causing an
employee to leave his or her employment either for Mr. Crawford or for any other entity or person. 
 7.    All
payments made pursuant to this Severance Agreement will be subject to standard deductions and the withholding of applicable taxes. 
 8.    In the event that the severance and other benefits provided for in this Severance Agreement or otherwise payable to Mr. Crawford (i) constitute “parachute payments” within the meaning of
Section 280G of the Code and (ii) but for this Section, would be subject to the excise tax imposed by Section 4999 of the Code, then Mr. Crawford’s separation payments under this Severance Agreement will be either:

 (a)    delivered in full, or 
 (b)    delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code, 

  

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whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999
of the Code, results in the receipt by Mr. Crawford on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code.
Unless the Company and Mr. Crawford otherwise agree in writing, any determination required under this Section will be made in writing by the independent public accountants who are primarily used by the Company (the “Accountants”),
whose determination will be conclusive and binding upon Mr. Crawford and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Mr. Crawford will furnish to the Accountants such information and documents as
the Accountants may reasonably request in order to make a determination under this Section. The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section. 
 9.    The following capitalized terms shall the meanings set forth herein: 
 (a)    Cause. For purposes of this Severance Agreement, “Cause” means (i) Mr. Crawford’s willful
misconduct; (ii) Mr. Crawford’s unjustifiable neglect of his duties (as determined in the good faith judgment of the Board); (iii) Mr. Crawford’s acting in any manner that has a direct, substantial and adverse effect on
the Company or its reputation, (iv) Mr. Crawford’s repeated material failure or repeated refusal to comply with written policies, standards and regulations established by the Company from time to time which failure, if curable, is not
cured to the reasonable satisfaction of the Board during the thirty (30 ) day period following written notice of such failure from the Company; (v) any tortious act, unlawful act or malfeasance which causes or reasonably could cause (for
example, if it became publicly known) material harm to the Company’s standing, condition or reputation; (vi) any material breach by Mr. Crawford of the provisions of any confidential information agreement with the Company or other
material improper disclosure of the Company’s confidential or proprietary information, (vii) Mr. Crawford’s theft, dishonesty, or falsification of any Company records; (viii) Mr. Crawford being found liable in any Securities
and Exchange Commission or other civil or criminal securities law action or entering any cease and desist order with respect to such action (regardless of whether or not Mr. Crawford admits or denies liability); or (ix) Mr. Crawford
(A) obstructing or impeding; (B) endeavoring to influence, obstruct or impede, or (C) failing to materially cooperate with, any investigation authorized by the Board or any governmental or self-regulatory entity (an
“Investigation”). However, Mr. Crawford’s failure to waive attorney-client privilege relating to communications with Mr. Crawford’s own attorney in connection with an Investigation will not constitute “Cause.”

 (b)    Code. For purposes of this Severance Agreement, “Code” means the Internal Revenue Code of
1986, as amended. 
 (c)    Continuance Period. For purposes of this Severance Agreement, “Continuance
Period” will mean the period of time beginning on the date of the termination of Mr. Crawford’s employment and ending on the date on which Mr. Crawford is no longer entitled to receive severance payments under this Severance
Agreement. 
  

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 10.    This Severance Agreement will be binding upon and inure to the benefit of
(a) the heirs, executors and legal representatives of Mr. Crawford upon Mr. Crawford’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms
of this Severance Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of the Company. None of the rights of Mr. Crawford to receive any form of compensation payable pursuant to this Severance Agreement may be assigned or transferred except by will or the laws of descent
and distribution. Any other attempted assignment, transfer, conveyance or other disposition of Mr. Crawford’s right to compensation or other benefits will be null and void. 
 11.    This Severance Agreement constitutes the entire agreement between the parties pertaining to the separation of
Mr. Crawford from employment with the Company and its subsidiaries, is intended to apply to the exclusion of all other remedies in the event of such separation and supersedes all prior or contemporaneous agreements whether written or oral. The
Company and Mr. Crawford agree to work together in good faith to consider amendments to this Severance Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or
income recognition under Section 409A prior to actual payment to Mr. Crawford. No waiver, alteration, or modification of any of the provisions of this Severance Agreement will be binding unless in writing and signed by duly authorized
representatives of the parties hereto. 
 12.    In the event that any provision hereof becomes or is declared by a court
of competent jurisdiction to be illegal, unenforceable or void, this Severance Agreement will continue in full force and effect without said provision. 
 13.    This Severance Agreement shall be governed by and construed in accordance with the laws of the State of California (with the exception of its conflict of laws provisions). 
 14.    In the event of disagreement, the parties agree to attempt to work out their differences in good faith. In the event the
parties are unable to so work out their differences, any controversy or claim arising out of or relating to this Severance Agreement, or the breach thereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the
American Arbitration Association, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The parties agree that such arbitration shall be held in Santa Clara County, California and that the
Company shall reimburse Mr. Crawford’s reasonable costs and attorneys’ fees. 
 15.    Mr. Crawford
acknowledges and agrees that Mr. Crawford is executing this Severance Agreement voluntarily and without any duress or undue influence by the Company or anyone else. Mr. Crawford further acknowledges and agrees that he has carefully read
this Severance Agreement and that he has asked any questions needed for him to understand the terms, consequences and binding effect of this Severance Agreement and fully understand it, including that he is waiving his right to a jury trial.
Finally, Mr. Crawford agrees that he has been provided an opportunity to seek the advice of an attorney of his choice before signing this Severance Agreement. 
  

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 16.    This Severance Agreement may be executed in counterparts, and each counterpart
will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned. 
 17.    All notices, requests, demands and other communications called for hereunder will be in writing and will be deemed given (a) on the date of delivery if delivered personally, (b) one (1) day after
being sent overnight by a well established commercial overnight service, or (c) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the
following addresses, or at such other addresses as the parties may later designate in writing: 
 If to the Company:

 Attn: Chairman of the Compensation Committee 
 c/o Corporate Secretary 
 Nanometrics Incorporated 
 1550 Buckeye Drive 
 Milpitas, CA 95035 
 If to Mr. Crawford: 
 at the last residential address known by the Company. 
 Executed as of the date first above written. 
  

			
	NANOMETRICS INCORPORATED
		
	By:	 	 
		 	 Bruce C. Rhine
 Chief Executive
Officer

 AGREED TO AND ACCEPTED: 
  

 Bruce Crawford 
  

 -6-Separation and Release Agreement

 Exhibit 10.2 
 SEPARATION AGREEMENT AND RELEASE 
 This Separation Agreement and Release (“Agreement”) is
made by and between John D. Heaton (“Employee”) and Nanometrics Incorporated (“Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”). 
 RECITALS 
 WHEREAS, Employee was
formerly employed by the Company; 
 WHEREAS, Employee signed the Company’s Employee Patent and Confidential Information Agreement (the
“Confidentiality Agreement”) on September 17, 1990; 
 WHEREAS, the Company and Employee entered into an Employment Agreement
effective as of October 4, 2006 (the “Employment Agreement”); 
 WHEREAS, the Company terminated Employee’s employment
with the Company on March 26, 2007 (the “Termination Date”); and 
 WHEREAS, the Parties wish to resolve any and all disputes,
claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of, or in any way
related to Employee’s employment with, or separation from, the Company; 
 NOW, THEREFORE, in consideration of the mutual promises made
herein, the Company and Employee hereby agree as follows: 
 COVENANTS 
 1.    Consideration. The Employee will be entitled to the consideration indicated in the Employment Agreement, as follows:

 a.    Cash. The Company agrees to pay Employee the gross sum of $404,250.00 over twelve (12) months
commencing on the first Company payroll date that occurs after the Effective Date of this Agreement. Such payments will be made in equal installments, less applicable withholding, in accordance with the Company’s normal payroll practices. Any
and all payments of already made by the Company to Employee since the Termination Date, with the exception of repayment of expenses, shall be deducted from this amount. 
 b.    Equity. Effective as of the Termination Date, the vesting of each outstanding equity award relating to shares of the Company’s common stock shall accelerate and become immediately
exercisable as to that number of shares that would have vested had Employee remained an employee of the Company through the twelve-month anniversary of the Termination Date. Employee’s deadline to exercise is extended to the date before the
Company’s first public disclosure of earnings after the Effective Date of this Agreement. Except as provided herein, each of 

 
Employee’s equity awards shall continue to be governed by the terms and conditions of the equity plan under which it was granted and the equity award
agreement between Employee and the Company (such plan(s) and agreement(s) the “Stock Agreements”). 
 c.    COBRA. Provided that Employee timely and validly elects to continue medical care coverage for Executive (and any eligible dependents) under the Company’s benefit plans pursuant to COBRA, the Company
shall reimburse Employee for the payments Employee makes for COBRA coverage for continued medical benefits until the earlier of (i) twelve (12) months from the Termination Date, or (ii) the date upon which Employee and Employee’s
eligible dependents obtain coverage through some alternative source, whichever occurs first. COBRA reimbursements shall be made by the Company to Employee consistent with the Company’s normal expense reimbursement policy, provided that Employee
submits documentation to the Company substantiating his payments for COBRA coverage. For purposes of this Agreement, “COBRA” shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended and as codified in
Section 4980B of the Code and Section 601 et. seq. of ERISA or any similar applicable state law. 
 2.    Benefits. Employee’s health insurance benefits shall cease on the last day of March 2007 (or, if provided by the Company’s benefits plans, on the Termination Date), subject to Employee’s right
to continue his health insurance under COBRA. Employee’s participation in all benefits and incidents of employment, including, but not limited to, vesting in stock options (subject to paragraph 1.b above), and the accrual of bonuses,
vacation, and paid time off, shall cease as of the Termination Date. 
 3.    Payment of Salary. Employee
acknowledges and represents that, other than the consideration set forth in this Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation/paid time off, housing allowances, relocation costs, interest, severance,
outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee. 
 4.    Release of Claims. Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and
former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”). Employee,
on his own behalf and on behalf of his respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any
claim, complaint, charge, duty, obligation, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions,
acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including, without limitation: 
 a.    any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that relationship; 
 b.    any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of
the Company, including, without limitation, any claims for 

  

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fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;

 c.    any and all claims for wrongful discharge of employment; termination in violation of public policy;
discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress;
fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion
of privacy; false imprisonment; conversion; and disability benefits; 
 d.    any and all claims for violation of any
federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the
Fair Labor Standards Act, except as prohibited by law; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker
Adjustment and Retraining Notification Act; the Family and Medical Leave Act, except as prohibited by law; the Sarbanes- Oxley Act of 2002; the Uniformed Services Employment and Reemployment Rights Act; the California Family Rights Act; the
California Labor Code, except as prohibited by law; the California Workers’ Compensation Act, except as prohibited by law; and the California Fair Employment and Housing Act; 
 e.    any and all claims for violation of the federal or any state constitution; 
 f.    any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

 g.    any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other
tax treatment of any of the proceeds received by Employee as a result of this Agreement; and 
 h.    any and all claims
for attorneys’ fees and costs. 
 Employee agrees that the release set forth in this section shall be and remain in effect in all
respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released as a matter of law, including, but not
limited to: (1) your right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission or comparable state agency against the Company (with the understanding that any such filing or participation does not
give you the right to recover any monetary damages against the Company; your release of claims herein bars you from recovering such monetary relief from the Company); (2) claims under Division 3, Article 2 of the California Labor Code
(which includes California Labor Code section 2802 regarding indemnity for necessary expenditures or losses by employee); (3) claims prohibited from release as set forth in California Labor Code section 206.5 (specifically “any
claim or right on account of wages due, or to become due, or made as an advance on wages to be earned, 

  

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unless payment of such wages has been made”); (4) and any claims for indemnity or the advance of defense costs, whether such claims arise under
Company instruments (including, but limited to, the Company’s Articles, By-laws, resolutions, policies, and practices), policies of insurance, or the Delaware General Corporation Law. 
 5.    Acknowledgement of Waiver of Claims under ADEA. Employee acknowledges that he is waiving and releasing any rights he may
have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary. Employee agrees that this waiver and release does not apply to any rights or claims that may arise under the
ADEA after the Effective Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled. Employee further acknowledges that he has
been advised by this writing that: (a) he should consult with an attorney prior to executing this Agreement; (b) he has twenty-one (21) days within which to consider this Agreement; (c) he has seven (7) days following
his execution of this Agreement to revoke this Agreement; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking
a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law. In the event Employee signs this Agreement and
returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering this Agreement. Employee acknowledges and understands
that revocation must be accomplished by a written notification to the Chairman of the Board of the Company or the General Counsel of the Company that is received prior to the Effective Date. 
 6.    California Civil Code Section 1542. Employee acknowledges that he has been advised to consult with legal counsel
and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows: 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
 Employee, being aware of said code
section, agrees to expressly waive any rights he may have thereunder, as well as under any other statute or common law principles of similar effect. 
 7.    No Pending or Future Lawsuits. Employee represents that he has no lawsuits, claims, or actions pending in his name, or on behalf of any other person or entity, against the Company or
any of the other Releasees. Employee also represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the Company or any of the other Releasees arising out of acts or omissions
occurring prior to the Effective Date of this Agreement. 
  

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 8.    Application for Employment. Employee understands and agrees that, as a
condition of this Agreement, Employee shall not be entitled to any employment with the Company, and Employee hereby waives any right, or alleged right, of employment or re-employment with the Company. Employee further agrees not to apply for
employment with the Company. 
 9.    Trade Secrets and Confidential Information/Company Property. Employee agrees
that he will not disclose the Company’s trade secrets and confidential and proprietary information. Employee further agrees to assist the Company, or its designee, at the Company’s expense, in every proper way to secure the Company’s
rights in the Company’s trade secrets and confidential and proprietary information and any rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the
execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem proper or necessary in order to apply for, register, obtain, maintain, defend, and enforce such rights and in order to assign
and convey to the Company and Releasees the sole and exclusive rights, title and interest in and to such trade secrets and confidential and proprietary information and any rights relating thereto, and testifying in a suit or other proceeding
relating to such trade secrets and confidential and proprietary information and any rights relating thereto. Employee has returned all Company property in his possession as of the date he executed this Agreement. Employee specifically confirms that,
up to the date that he executes this Agreement, he has had no business relationship (other than as a representative and on behalf of the Company) with Micro Precision Automation, including service as an employee, officer, director, consultant,
shareholder, or advisor. 
 10.    No Cooperation. Employee further agrees that he will not knowingly encourage,
counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court
order to do so or as related directly to the ADEA waiver in this Agreement. Employee agrees both to immediately notify the Company upon receipt of any subpoena or court order to compel evidence against the Company, and to furnish promptly thereafter
a copy of such subpoena or other court order. 
 11.    Non-Disparagement. Employee agrees to refrain from any
disparaging statements about the Company or any of the other Releasees including, without limitation, the business, products, intellectual property, financial standing, future, or employment/compensation/benefit practices of the Company. Employee
agrees to refrain from any defamation, libel, or slander of any of the Company or any of the other Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of the Company and any of the other Releasees.

 12.    Breach. Executive’s receipt of continued severance payments will be subject to Executive continuing
to comply with the material terms of this Agreement, and the Confidentiality Agreement, provided that a legal action by Employee challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA shall
not be a breach of this Agreement. 
 13.    No Admission of Liability. Employee understands and acknowledges that
this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee. No action taken by the Company hereto, either previously or in connection with this Agreement, shall be deemed or construed to be
(a) an admission of the truth or falsity of 

  

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any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third
party. 
 14.    Non-Solicitation. Employee agrees that for a period of twelve months (12) months immediately
following the Effective Date of this Agreement, Employee shall not directly or indirectly solicit any of the Company’s employees to leave his or her employment at the Company. 
 15.    Costs. The Parties shall each bear their own costs, attorneys’ fees, and other fees incurred in connection with
the preparation of this Agreement. 
 16.    ARBITRATION. THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT
OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SANTA CLARA COUNTY, BEFORE JAMS, PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (“JAMS
RULES”). THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES. THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH CALIFORNIA LAW, INCLUDING THE CALIFORNIA CODE OF CIVIL PROCEDURE, AND THE ARBITRATOR
SHALL APPLY SUBSTANTIVE AND PROCEDURAL CALIFORNIA LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW PROVISIONS OF ANY JURISDICTION. TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH CALIFORNIA LAW, CALIFORNIA LAW SHALL TAKE
PRECEDENCE. THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT
JURISDICTION TO ENFORCE THE ARBITRATION AWARD. THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN
A COURT OF LAW BY A JUDGE OR JURY. NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER
OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE. 
 17.    Tax
Consequences. The Company makes no representations or warranties with respect to the tax consequences of the payments and any other consideration provided to Employee or made on his behalf under the terms of this Agreement. Employee agrees and
understands that he is responsible for payment, if any, of local, state, and/or federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon. Employee further agrees to
indemnify and hold the Company harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of
(a) Employee’s failure to pay, or Employee’s delayed payment of, federal or state taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs. 
  

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 18.    Authority. The Company represents and warrants that the undersigned has
the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that he has the capacity to act on his own behalf and on behalf of
all who might claim through him to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or
causes of action released herein. 
 19.    No Representations. Employee represents that he has had an opportunity
to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in
this Agreement. 
 20.    No Waiver. The failure of the parties to insist upon the performance of any of the terms
and conditions in this Agreement, or the failure to prosecute any breach of any of the terms or conditions of this Agreement, shall not be construed thereafter as a waiver of any such terms or conditions. This entire Agreement shall remain in full
force and effect as if no such forbearance or failure of performance had occurred. 
 21.    Severability. In the
event that any provision or any portion of any provision hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said
provision or portion of provision. 
 22.    Attorneys’ Fees. Except with regard to a legal action
challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to
recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action. 
 23.    Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee
concerning the subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings
concerning the subject matter of this Agreement and Employee’s relationship with the Company, with the exception of the Employment Agreement, to the extent that it does not conflict with the substance or terms of this Agreement, and the
Confidentiality Agreement and the Stock Agreements. Executive agrees to work in good faith with the Company to consider amendments to this Agreement which are necessary or appropriate to avoid imposition of any additional tax or income recognition
to Employee under Section 409A of the Internal Revenue Code of 1986, as amended and any proposed, temporary or final Treasury Regulations and Internal Revenue Service guidance thereunder. Notwithstanding the foregoing, this Agreement will be
deemed amended, without any consent required from Executive, to the extent necessary to avoid imposition of any additional tax or income recognition pursuant to Section 409A prior to actual payments under this Agreement to Executive. The
parties agree to cooperate with each other and to take reasonably necessary steps in this regard. To the extent that the terms and conditions of the 

  

 -7- 

 
Employment Agreement, the Confidentiality Agreement or any of the Stock Agreements conflict with this Agreement, the provisions of this Agreement shall
control. 
 24.    No Oral Modification. This Agreement may only be amended in a writing signed by Employee and
the Company’s Chief Executive Officer. 
 25.    Governing Law. This Agreement shall be governed by the laws
of the State of California, without regard for choice-of-law provisions. 
 26.    Effective Date. Employee shall
have seven (7) days after Employee signs this Agreement to revoke it. This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed by the Parties and has not been revoked
by Employee before that date (the “Effective Date”). 
 27.    Counterparts. This Agreement may be
executed in counterparts. An electronic image or copy of this Agreement shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
 28.    Voluntary Execution of Agreement. Employee understands and agrees that he executed this Agreement voluntarily, without
any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of his claims against the Company and any of the other Releasees. Employee acknowledges that: 
 (a)    he has read this Agreement; 
 (b)    he has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his own choice or has elected not to retain legal counsel; 
 (c)    he understands the terms and consequences of this Agreement and of the releases it contains; and 
 (d)    he is fully aware of the legal and binding effect of this Agreement. 
  

 -8- 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

  

									
		 		 	 JOHN D. HEATON, an individual

					
	Dated:	 	June 25, 2007	 		 		 	/s/ John D. Heaton
		 		 		 		 	John D. Heaton

  

									
		 		 	 NANOMETRICS INCORPORATED

					
	Dated:	 	June 25, 2007	 		 		 	/s/ Edmond R. Ward
		 		 		 		 	 Edmond R. Ward
 Board of
Directors

  

 -9-

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