Document:

EXHIBIT 10.2

 

Veeco Instruments Inc.

1 Terminal Drive

Plainview, New York 11803 U.S.A.

Phone (516) 677-0200

Fax (516) 677-0380

www.veeco.com

 

August 29, 2018

 

William J. Miller, Ph.D

 

Dear Bill:

 

Further to your discussion with the Board of Directors of Veeco Instruments Inc. (the “Company” or “Veeco”), this letter will confirm your appointment to the position of Chief Executive Officer and as a member of the Board of Directors of the Company. Upon your acceptance, the effective date of your appointment shall be October 1, 2018 (“Effective Date”). The terms of your employment as Chief Executive Officer are set forth in Exhibit A hereto attached (the “Employment Terms”).

 

This letter, including the Employment Terms, constitutes the sole and complete agreement between the Company and you with respect to the subject matter herein and supersedes all other agreements, both oral and written, between the Company or any of its subsidiaries and you, to the extent inconsistent with this letter and the attached Employment Terms.

 

This letter and the terms and conditions hereof are to be construed, governed and interpreted in accordance with the laws of the State of New York, without giving effect to its conflict of law principles.

 

This letter is not a contract of employment and does not provide any rights regarding your continued employment with Veeco.  Your employment with Veeco will continue on an “at will” basis.  This means that the employment relationship is non-contractual, for no fixed period and terminable at any time by either you or the Company.  In addition, no subsequent oral or written agreements on this subject shall be valid unless they are in writing and signed by an authorized representative of Veeco.

 

Two copies of this letter are enclosed. Please sign and return a copy and let me know if you have any questions about this letter or the terms of your appointment.

 

Bill, I’d like to personally congratulate you and wish you much success in your new role at Veeco.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
/s/ Gordon Hunter
    	
 
    
	
Gordon Hunter
    	
 
    
	
Compensation Committee   Chairman
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEPTED AND AGREED:
    
	
 
    	
 
    
	
 
    	
/s/ William J. Miller
    
	
 
    	
William J. Miller
    
	
 
    	
Date: August 29,   2018
    

 

1

 

Exhibit A

Executive Compensation Term Sheet

William J. Miller (the “Executive”)

($000)

 

	
 
    	
 
    	
Description
    
	
Title
    	
 
    	
Chief Executive Officer; will also be named to the   Board of Directors
    
	
Effective Date
    	
 
    	
October 1, 2018
    
	
Base Salary
    	
 
    	
$575
    
	
Annual Bonus Opportunity
    	
 
    	
110% of Base Salary / $633(1)
    
	
Promotion Equity
   Award
    	
 
    	
$2,500 to be granted at the Effective Date on the   following terms:

·                  $2,000 granted   as PRSUs subject to the Company’s 3-year TSR vs. the 3-year TSR of the   Russell 2000; see grant agreement for specific terms and conditions

·                  $500 granted   as time-based restricted stock subject to 4-year vesting (25% / year)
    
	
2019 Annual Equity Award
    	
 
    	
$1,500 to be granted in conjunction with 2019 annual   award program:

·                  Not less than   51% to be performance-based restricted stock units

·                  Balance to be   granted as time-based restricted stock subject to ratable 4-year vesting
    
	
Stock Ownership Requirement
    	
 
    	
·                  4x   Base Salary

·                  Executive   shall have, in accordance with the Company’s Stock Ownership policy, five   years to achieve compliance with the requirement.
    
	
Employee Benefits Plans and Perquisites
    	
 
    	
·                  Will continue   to participate in all employee benefit plans.

·                  Car allowance   to continue at $8.4.
    
	
Change in
   Control Benefits
    	
 
    	
Covered by Veeco Instruments Inc. Sr. Executive   Change in Control Policy with the following amendments applicable to   Executive:

·                  The definition   of Good Reason set forth in Section 2 shall be expanded to include an   involuntary diminution in the executive’s position, title, responsibilities,   authority or reporting responsibilities.

·                  The multiplier   set forth in Section 4(b)(ii) shall be increased from 1.5 to 2.0.
    
	
Non-Change-in-Control Severance Benefits
    	
 
    	
·                  Applicable   in the event of Executive’s termination by the Company other than for Cause   or resignation for Good Reason and conditioned on the receipt of a general   release of claims satisfactory to the Company.

·                  Good Reason   Definition

·                  Significant   and involuntary reduction in base salary and/or the total benefits available   under cash or stock incentives or other employee benefit plans(2)

·                  Involuntary   relocation of principal place of work by more than 50 miles

·                  If not   appointed to the Board within thirty (30) days of his assignment or if he   thereafter involuntarily ceases to be a member of the Board

·                  Any   involuntary diminution in the executive’s position, title, responsibilities,   authority or reporting responsibilities.

·                  Twenty four   (24) months of salary continuation paid as severance

·                  Pro-rata bonus   for year of termination based on actual company and individual performance   through end of the year. Payment, if any, would be made at same time bonus   payments are made to other employees.

·                  Up to 18   months of subsidized COBRA

·                  Outstanding   equity to vest immediately or, in the case of PRSU awards, after first being   earned. Stock options to remain exercisable for the shorter of 24 months or   the original term of the option.
    

 

(1)  2018 Bonus to be prorated based on the effective date of new assignment

(2)  Excludes base salary or other reductions made in connection with a reduction program affecting similarly situated employees.

 

2EXHIBIT 10.3

 

Veeco Instruments Inc.

1 Terminal Drive

Plainview, New York 11803 U.S.A.

Phone (516) 677-0200

Fax (516) 677-0380

www.veeco.com

 

August 29, 2018

 

Shubham (Sam) Maheshwari

 

Dear Sam:

 

I am pleased to confirm your appointment to the position of Chief Operating Officer, which role shall be in addition to your current role as Chief Financial Officer. Upon your acceptance, the effective date of your appointment shall be October 1, 2018 (“Effective Date”). The terms of your employment are set forth in Exhibit A hereto attached (the “Employment Terms”).

 

This letter, including the Employment Terms, constitutes the sole and complete agreement between the Company and you with respect to the subject matter herein and supersedes all other agreements, both oral and written, between the Company or any of its subsidiaries and you, to the extent inconsistent with this letter and the attached Employment Terms.

 

This letter and the terms and conditions hereof are to be construed, governed and interpreted in accordance with the laws of the State of New York, without giving effect to its conflict of law principles.

 

This letter is not a contract of employment and does not provide any rights regarding your continued employment with Veeco.  Your employment with Veeco will continue on an “at will” basis.  This means that the employment relationship is non-contractual, for no fixed period and terminable at any time by either you or the Company.  In addition, no subsequent oral or written agreements on this subject shall be valid unless they are in writing and signed by an authorized representative of Veeco.

 

Two copies of this letter are enclosed. Please sign and return a copy and let me know if you have any questions about this letter or the terms of your appointment.

 

Sam, I’d like to personally congratulate you and wish you much success in your new role at Veeco.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
/s/ Robert W. Bradshaw
    	
 
    
	
Robert W. Bradshaw
    	
 
    
	
Sr. Vice President, Human   Resources
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEPTED AND AGREED:
    
	
 
    	
 
    
	
 
    	
/s/ Shubham Maheshwari
    
	
 
    	
Shubham Maheshwari
    
	
 
    	
Date: August 29,   2018
    

 

1

 

Exhibit A

Executive Compensation Term Sheet

Shubham (Sam) Maheshwari (the “Executive”)

($000)

 

	
 
    	
 
    	
Description
    
	
Title
    	
 
    	
Executive Vice President, Chief Operating Officer   and Chief Financial Officer
    
	
Effective Date
    	
 
    	
October 1, 2018
    
	
Base Salary
    	
 
    	
$500
    
	
Annual Bonus Opportunity
    	
 
    	
90% of Base Salary / $450(3)
    
	
Promotion Equity Award
    	
 
    	
$1,000 to be granted at the Effective Date on the   following terms:

·                  $750 granted   as PRSUs subject to the Company’s 3-year TSR vs. the 3-year TSR of the   Russell 2000; see grant agreement for specific terms and conditions

·                  $250 granted   as time-based restricted stock subject to 4-year vesting (25% / year)
    
	
2019 Annual Equity Award
    	
 
    	
$850 to be granted in conjunction with 2019 annual   award program:

·                  Not less than   51% to be performance-based restricted stock units

·                  Balance to be   granted as time-based restricted stock subject to 4-year vesting
    
	
Stock Ownership Requirement
    	
 
    	
·                  3x Base Salary

·                  Executive   shall have, in accordance with the Company’s Stock Ownership policy, five   years to achieve compliance with the requirement.
    
	
Employee Benefits Plans and Perquisites
    	
 
    	
·                  Will continue   to participate in all employee benefit plans.

·                  Car allowance   to continue at $8.4.
    
	
Change in Control Benefits
    	
 
    	
Covered by Veeco Instruments Inc. Sr. Executive   Change in Control Policy.
    
	
Non-Change-in-Control Severance Benefits
    	
 
    	
·                  Applicable in   the event of Executive’s termination by the Company other than for Cause or   resignation for Good Reason and conditioned on the receipt of a general   release of claims satisfactory to the Company.

·                  Good Reason   Definition

·                  Significant   and involuntary reduction in base salary and/or the total benefits available   under cash or stock incentives or other employee benefit plans(4)

·                  Involuntary   relocation of principal place of work by more than 50 miles

·                  Twelve (12)   months of salary continuation paid as severance

·                  Up to twelve   (12) months of subsidized COBRA
    

 

(3)  2018 Bonus to be prorated based on the effective date of new assignment

(4)  Excludes base salary or other reductions made in connection with a reduction program affecting similarly situated employees.

 

2

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