Document:

Exhibit 10.35

SEPARATION AGREEMENT

             This Separation Agreement (“Agreement”) is made between Credence Systems Corporation (“CSC”) and Dennis Wolf (“
Wolf”).

RECITALS

             WHEREAS, Wolf has been employed by CSC as its Chief Financial Officer since March 1998, and has voluntarily resigned from such employment effective
December 15, 2000 (the “Termination Date”);

             WHEREAS, Wolf and CSC wish to preserve the goodwill between them and to resolve any and all disputes that exist or may in the future exist between
them, arising from or relating to Wolf’s employment with CSC and his resignation; and

             THEREFORE, in consideration for the promises and benefits described below, CSC and Wolf (the “Parties”) agree as follows: 

AGREEMENTS

I.  Agreements of CSC

        A.  Post-Termination Payments. Provided that this Agreement becomes effective, CSC shall pay Wolf after the Termination Date, bi-weekly installment payments in
the gross amount of three thousand six hundred ninety-two dollars and thirty-one cents ($3,692.31), subject to tax withholdings and in accordance with its regular payroll schedule, until the earlier of:

              1.  the date Wolf commences other employment or consulting with another employer, company, entity or person, or 

              2.  December 15, 2001, or

              3.  the date Wolf breaches any term of this Agreement or any term of the Proprietary Information and Inventions Agreement signed by
Wolf in connection with his employment with CSC (“PIIA”).

        B.  COBRA Continuation Coverage. Provided that this Agreement becomes effective and Wolf and/or his eligible dependents timely elects to continue existing coverage under
CSC group health plans for the period after December 31, 2000, pursuant to the federal law known as COBRA, CSC shall pay the monthly premiums due on behalf of Wolf and/or his eligible dependents for the period beginning January 1, 2001 through the earlier
of:

              1.  the date Wolf is eligible to participate in another employer’s health benefit program, or

              2.  December 31, 2001, or 

              3.  the date Wolf breaches any term of this Agreement or any term of the PIIA.

        C.  Pay-out of Deferred Compensation. Per Wolf’s request, CSC shall pay to Wolf on January 2, 2001, the total balance of Wolf’s account in the Credence Systems
Deferred Compensation Plan, valued as of December 29,2000. Such payment shall be subject to all applicable tax withholdings.

II.  Agreements of Wolf

        A.  Notice of Employment/Consultation. Wolf shall provide CSC with written notice, pursuant to Section III.E., below, no later than two (2) calendar days after he
accepts other employment or consulting with another employer, company, entity or person, which written notice shall contain:

              1.  the date Wolf shall commence such employment or consulting; and

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              2.  the date on which Wolf will be eligible to participate in another employer’s, company’s, entity’s or person’s
health benefit  program.

        B.  General Release. Wolf hereby fully and forever waives, releases, acquits and discharges CSC, including its officers, directors, agents, stockholders, employees,
affiliates, representatives, predecessors, successors and assigns, from any and all claims, actions, charges, complaints, grievances and causes of action of whatever nature, whether known or unknown, which exist or may in the future exist arising from or
relating to events, acts or omissions through the Effective Date of this Agreement, his employment with CSC and the termination thereof, including but not limited to:  claims of breach of contract, breach of the covenant of good faith and fair dealing,
wrongful termination, unpaid wages, violation of public policy, fraud, intentional or negligent misrepresentation, defamation, personal injury, infliction of emotional distress, and claims under Title VII of the 1964 Civil Rights Act, the Equal Pay Act of
1963, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Civil Rights Act of 1866, the Employee Retirement Income Security Act of 1974, the Family Medical Leave Act, the New York State Human Rights Law and any other local,
state and federal laws and regulations relating to employment, except:

              1.  any claim Wolf may have for unemployment insurance benefits; 

              2.  any claim Wolf may have for workers’ compensation insurance benefits under any CSC policy of worker’s compensation
insurance; 

              3.  any claim Wolf may have to any employee benefit, under any employee benefit plan, that vested on or prior to the Termination Date;
 and

              4.  any claim Wolf may have to stock and stock options that vested as of the Termination Date pursuant to existing stock option
agreements with CSC.

        Wolf understands and agrees that if, hereafter, he discovers facts different from or in addition to those which he now knows or believes to be true, that the waivers and releases
of this Agreement shall be and remain effective in all respects notwithstanding such different or additional facts or the discovery of such fact. Wolf agrees that he fully and forever waives any and all rights and benefits conferred upon him by Section
1542 of the Civil Code of the State of California which states as follows (parentheticals added):

A general release does not extend to claims which the creditor [i.e., Wolf] does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his
settlement with the debtor [i.e., CSC].

        C.  Return of CSC Documents & Property. Wolf agrees that he has returned to CSC no later than the Effective Date of this Agreement, to CSC, any and all documents
(paper and electronic) created and received by Wolf during the course of his employment with CSC (including any documents of its subsidiaries), as well as all items of CSC property (including property of its subsidiaries) provided for his use during the
course of his employment with CSC, including but not limited to keys and security cards, telephone and credit cards, computer and office equipment. The only exceptions are: 

              1.  copies of records evidencing the terms, conditions and payment of compensation and benefits during his employment with CSC;

              2.  copies of documents evidencing the grant of stock options, and the terms and conditions of such grant(s);

              3.  copies of documents provided to shareholders of CSC;

              4.  copy of the PIIA; and

              5.  copy of this Agreement.

        D.  Transition Assistance. After the Termination Date, Wolf shall provide reasonable consultation and assistance as requested by CSC for the purpose of successfully
transitioning Wolf’s prior duties and responsibilities to a newly hired Chief Financial Officer.

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        E.  Cooperation in Legal Matters. After the Termination Date, Wolf shall provide information and cooperate, as reasonably requested by CSC, in connection with any legal
action involving CSC and arising from or relating in any way to Wolf’s employment with CSC.

        F.  Nondisclosure of Agreement. Wolf agrees that he will not disclose to others the fact or terms of this Agreement, except that he may disclose such information to his
spouse, and to his attorneys and/or accountants in order for such individuals to render professional services to him. However, each such person may not disclose to any other person the fact or terms of this Agreement, Wolf is responsible for ensuring that
they do not make any such disclosures, and any disclosure by such person shall be deemed to be a disclosure by Wolf.

        G.  Notice of Resignation. Wolf shall substitute the December 16, 2000 notice of resignation he previously submitted to CSC with the form of notice of resignation
attached hereto.

        H.  PIIA. Wolf shall, at all times in the future, remain bound by the PIIA he signed in connection with his employment with CSC.

        I.  Material Inducements; Breach by Wolf. Wolf hereby agrees and acknowledges that the releases, waivers and promises contained in this Agreement, including the promises
of assistance, non-disclosure and confidentiality, and compliance with the PIIA, are material inducements for the consideration described in Section I. above, and that for the breach thereof by Wolf, CSC shall be entitled to recover from Wolf all amounts
paid to and on behalf of Wolf pursuant to Section I.A. and Section I.B.

III.  Agreements and Acknowledgements of the Parties

        A.  Voluntary Termination & Final Wages. Wolf’s employment with CSC terminated, by Wolf’s voluntary resignation, at the close of business on December 15,
2000, after which he received all wages earned, including any accrued but unused paid-time-off (“PTO”), through that date.

        B.  Employee Benefits. Wolf’s participation in all employee benefits terminated at close of business on the Termination Date, except that Wolf and his
dependents (if any) may continue coverage in CSC’s group health benefit plans through December 31, 2000, and after December 31, 2000, Wolf and his dependents (if any) may elect to continue coverage in CSC’s group health benefit plans pursuant to
the federal law known as COBRA.

        C.  Stock Options. During his employment, Wolf  was granted certain options to purchase shares of CSC common stock. All vesting of such option shares ceased on the
Termination Date, at which time Wolf was vested in an aggregate of 77,500 option shares. All pre-existing terms and conditions applicable to such vested option shares remain in effect, including the post termination period during which Wolf must exercise
all vested option shares.

        D.  Disparagement. Neither Wolf nor CSC, through any of its executives, officers or directors, will make any negative or disparaging statements or comments, either as
fact or as opinion, about the other. With respect to statements or comments by Wolf about CSC, such statements or comments include but are not limited to CSC, its subsidiaries, employees, officers, directors, shareholders, vendors, products or services,
business, technologies, market position, finances, operations, performance and other similar information concerning CSC. Wolf agrees that he will refer all inquiries by any prospective employer to Dennis Hopwood, Vice President, Human Resources, for
information regarding Wolf’s past employment with CSC.

        E.  Notices. All written notices pursuant or relating to this Agreement shall be provided by email, facsimile or overnight delivery as follows:

              1.  To CSC:

		 
	Dennis Hopwood
Vice President Human Resources
Credence Systems Corporation
5975 Northwest Pinefarm Place
Hillsboro, OR 97124	 
 
 
Facsimile: 503-466-7206
Email: dennis_hopwood@credence.com 
	 	 

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              2.  To Wolf:

		 
	Dennis Wolf
6482 Pfeiffer Ranch Court
San Jose, CA  95120	 
 
Facsimile:  _________________
Email: WOLFDP@aol.com
	 	 

        F.  Severability. If any provision, or portion of a provision, of this Agreement is, for any reason, held to be unenforceable, that such unenforceability will not affect
any other provision, or portion of a provision, of this Agreement and this Agreement shall be construed as if such unenforceable provision or portion had never been contained herein. 

        G.  Assignment. This Agreement shall not be assignable by either Wolf or CSC without the express written consent of the other.

        H.  Resolution of Disputes. The Parties each agree that any and all disputes which arise out or relate to this Agreement or any of the subjects hereof, except any
of the subjects covered by the PIIA , unemployment or worker’s compensation insurance benefits, shall be resolved through final and binding arbitration . Binding arbitration will be conducted in accordance with the rules and regulations of the
American Arbitration Association (“AAA”) then in effect relative to commercial disputes provided, however, that the arbitrator(s) shall allow the discovery authorized by California Code of Civil Procedure section 1282 et seq., or any other discovery required by law in arbitration proceedings. Also, to the extent that any of the AAA rules conflict with any arbitration procedures required by applicable law, the arbitration procedures required by applicable law
shall govern. Binding arbitration shall be conducted in San Jose, California; if, however, Wolf does not reside within 100 miles of San Jose, California, at the time the dispute arises, then the arbitration may take place in the largest metropolitan area
within fifty (50) miles of Wolf’s place of residence when the dispute arose. The Parties will share equally the cost of the arbitration filing and hearing fees and the cost of the arbitrator(s); and each side will bear its own attorneys’ fees
although the arbitrator may award the prevailing party his/its reasonable attorneys fees and costs of arbitration. The arbitrator shall issue a written award that sets forth the essential findings and conclusions on which the award is based. The
Arbitrator shall have the authority to award any relief authorized by law in connection with the asserted claims or disputes. The Arbitrator’s award shall be subject to correction, confirmation, or vacation, as provided by any applicable law setting
forth the standard of judicial review of arbitration awards. The Parties each understand and agree that arbitration shall be instead of any civil litigation, that each side waives its right to a jury trial, and that the arbitrator’s decision shall be
final and binding to the fullest extent permitted by law and enforceable by any court having jurisdiction thereof.

        I.  Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of California.

        J.  Voluntary Execution of Agreement. This Agreement is the result of negotiations between Wolf and CSC and it is executed by each without duress, knowingly and
voluntarily, and with full appreciation of the rights and obligations being created and/or waived herein.

        K.  Time to Consider Agreement; Effective Date of Agreement. Wolf may have twenty-one (21) days after receipt of this Agreement within which he may review and consider,
and should discuss with an attorney of my own choosing, and decide whether or not to sign it. In addition, for the period of seven (7) days after Wolf signs this Agreement, he may revoke it by delivering a written notice of his revocation, no later than
the seventh day, consistent with Section III.E, above. The Effective Date of this Agreement shall be the eighth (8th) day after Wolf has signed it, provided that he has delivered it to CSC and he has not revoked it during the seven (7) days after he signed it.

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        L.  Modification & Entire Agreement. This Agreement may not be modified or changed, in whole or part, except by another written agreement signed by Wolf and CSC’
s President and/or Chief Executive Officer. This Agreement contains the entire agreement between the Parties with respect to the subject matters covered and referred to herein, and it supersedes any and all previous oral or written agreements between them except the PIIA which shall remain in full force and effect in accordance with its own terms.

	

	 	 	

	Dated:	 	   	
		 	 	

		 	 	Dennis Wolf

	

	 	 	CREDENCE SYSTEMS CORPORATION

	Dated:	 	By:   	
		 	 	

		 	 	Graham J. Siddall
President and Chief Executive Officer

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December 16, 2000

Dr. Graham Siddall
President & CEO
Credence Systems Corporation

Dear Graham,

             Due to my deteriorating health situation, I must immediately resign from my employment with Credence Systems Corporation (“Credence”). I
also must immediately resign from all other positions, offices, directorships, trusteeships and other posts I hold with Credence and with any of its affiliates and subsidiaries.

             I would like to thank you for your support, Graham, and wish to support you in any way that I can during the transition.

Respectfully,

Dennis P. Wolf
Executive Vice President and CFO
Credence Systems Corporation

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                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

         This AGREEMENT is entered into as of November 10, 2000 (the "Effective
Date"), by and between Scott D. Sellers ("Executive") and 3dfx Interactive,
Inc., a California corporation (the "Company"). In consideration of the mutual
covenants and agreements hereinafter set forth, the parties agree as follows:

         1. Duties and Scope of Employment.

              (a) Position and Duties. For the term of his employment under this
Agreement, the Company agrees to employ Executive as its Chief Technical Officer
and Founder, reporting directly to the Chief Executive Officer ("CEO"), or
person designated by the CEO. Executive shall have such duties and authority as
are commensurate with one employed in his position, as may be customarily
incident to such position, and as may be assigned to Executive from time to
time. Executive shall diligently, to the best of his ability, and with the
highest degree of good faith and loyalty, perform all such duties incident to
his position and use his best efforts to promote the interests of the Company.

              (b) Obligations to the Company. During the Employment Term,
Executive shall devote his full time and energy to the business of the Company
and shall not be engaged in any competitive business activity without the
express written consent of the CEO. Executive shall comply with the Company's
policies and rules, as they may be in effect from time to time during the term
of his employment.

              (c) No Conflicting Obligations. Executive represents and warrants
to the Company that he is under no obligations or commitments, whether
contractual or otherwise, that are inconsistent with his obligations under this
Agreement. Executive represents and warrants that he will not use or disclose,
in connection with his employment by the Company, any trade secrets or other
proprietary information or intellectual property in which Executive or any other
person has any right, title or interest and that his employment by the Company
as contemplated by this Agreement will not infringe or violate the rights of any
other person or entity. Executive represents and warrants to the Company that he
has returned all property and confidential information belonging to any prior
employers.

         2. Term of Employment.

              (a) Basic Rule. The Company agrees to continue Executive's
employment, and Executive agrees to remain in employment with the Company, from
the Effective Date until the date when Executive's employment terminates
pursuant to Subsection 2(b) below (the "Employment Period"). Executive's
employment with the Company shall be "at will," which means that either
Executive or the Company may terminate Executive's employment at any time, for
any reason, with "Cause" or "Without Cause." Any contrary representations, which
may have been made to Executive shall be superseded by this Agreement. This
Agreement shall constitute the full and complete agreement between Executive and
the

<PAGE>   2

Company regarding the "at will" nature of Executive's employment, which may only
be changed in an express written agreement signed by Executive and the Chief
Executive Officer.

              (b) Termination. The Company or Executive may terminate
Executive's employment at any time for any reason (or no reason), and with
"Cause" or "Without Cause," by giving the other party fourteen (14) days' notice
in writing. Executive's employment shall terminate automatically in the event of
his death.

         3. Cash and Incentive Compensation.

              (a) Base Salary. The Company shall pay Executive as compensation
for his services an annualized base salary of Two Hundred Sixty Thousand Dollars
($260,000), less applicable deductions and withholdings, payable in accordance
with the Company's standard payroll schedule. The compensation specified in this
Subsection (a), together with any increases in such compensation that the
Company may grant from time to time, are referred to in this Agreement as "Base
Salary." The Base Salary will be reviewed at least annually and shall be subject
to change from time-to-time at the sole discretion of the Chief Executive
Officer and/or the Compensation Committee of the Board of Directors (the
"Board").

              (b) Bonus. Executive will be eligible to earn an annualized bonus
(the "Target Bonus") for each fiscal year equal to at least forty percent (40%)
of his Base Salary, less applicable deductions and withholdings. The Target
Bonus shall be based upon performance criteria to be established by the CEO, in
consultation with Executive, and approved by the Compensation Committee of the
Board. If any part of the Target Bonus is earned for a given fiscal year, it
will be paid on or before March 31 of the following fiscal year.

              (c) Stock Options. As of the Effective Date of this Agreement,
Executive has been granted stock options pursuant to the Company's Stock Option
Plan (the "Plan"), which are summarized in Exhibit A to this Agreement (the
"Options"). Executive's Options shall continue to vest in accordance with the
Plan and the stock option agreements between the Company and Executive
evidencing such Options.

              (d) Vacation and Executive Benefits. During the term of his
employment, Executive shall be eligible for vacation each year, in accordance
with the Company's standard policy for senior executives, as it may be amended
from time to time. Executive shall be eligible during his employment term to
participate in any employee benefit plans generally available to the other
senior executives of the Company, subject in each case to the generally
applicable terms and conditions of the plan in question and to the
determinations of any person or committee administering such plan. The Company
reserves the right to amend, modify or terminate any employee benefits at any
time for any reason.

              (e) Business Expenses. During the term of his employment,
Executive shall be authorized to incur necessary and reasonable travel and other
business expenses in connection with his duties hereunder, pursuant to and
consistent with policies and procedures as established by the Company and as may
be modified from time-to-time. The Company shall reimburse Executive for such
expenses upon presentation of an itemized account and appropriate supporting
documentation, in accordance with Company policy and procedures.

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<PAGE>   3

         4. Payments, Benefits and Acceleration Following Termination.

              (a) Termination Following Change of Control. If, within one year
following a "Change of Control," Executive resigns for "Good Reason" or the
Company terminates Executive's employment "Without Cause," then Executive shall
receive:

                  (i) A lump sum severance payment equal to one hundred percent
         (100%) of Executive's Base Salary, less applicable deductions and
         withholdings;

                  (ii) The full amount of Executive's Target Bonus for the
         fiscal year in which Executive is terminated, less applicable
         deductions and withholdings;

                  (iii) Immediate vesting of the unvested shares under all
         outstanding stock options then held by Executive; and

                  (iv) Should Executive be eligible for and elect to continue
         his health insurance pursuant to COBRA, payment of COBRA premiums for
         twelve (12) months following the termination date of Executive's
         employment.

              (b) Termination Outside Change of Control. Subject to Section 4(e)
of this Agreement, if the Company terminates Executive's employment "Without
Cause" when no Change of Control has occurred in the prior year, then Executive
shall receive:

                  (i) Base Salary continuation payments in accordance with the
         Company's standard payroll practices until the earlier of (a) twelve
         (12) months following the termination of Executive's employment; or (b)
         the date on which Executive commences full-time employment for any
         person, venture, partnership or corporate entity (the "Continuation
         Period");

                  (ii) Immediate vesting of all then unvested shares, if any,
         under Executive's "October 2000 Option"; and

                  (iii) Should Executive be eligible for and elect to continue
         his health insurance pursuant to COBRA following the termination date,
         payment of COBRA premiums during the Continuation Period.

              (c) Resignation or Termination for "Cause." In the event that: (i)
Executive's employment is terminated by the Company at any time for "Cause;"
(ii) Executive resigns his employment for any reason when no Change of Control
has taken place within the prior twelve (12) months; or (iii) Executive resigns
his employment without "Good Reason" within twelve (12) months following a
Change of Control; then upon the termination of Executive's employment,
Executive will be paid his Base Salary and for all unused vacation earned
through the date of termination, but nothing else, and all stock vesting and
benefits will cease on Executive's date of termination.

              (d) Release Required. As a prior condition to Executive receiving
any payment, benefit or stock acceleration under Sections 4(a) and/or 4(b) of
this Agreement, Executive shall execute a full release of known and unknown
claims against the Company, its

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<PAGE>   4

successors, affiliates, employees, agents, advisors and representatives, in a
form designated by the Company.

              (e) Condition of Non-competition.

                  (i) Termination Following a Change of Control. In required by
         a successor company, Executive will not engage in any Competitive
         Activity for a period of one (1) year following a Change in Control.

                  (ii) Termination Outside a Change of Control. During the
         Continuation Period Executive shall not engage in any "Competitive
         Activity" without first notifying the Company of the contemplated
         activity. Executive agrees that if there is any reasonable question
         regarding whether or not a contemplated activity would be a Competitive
         Activity, Executive will consult with the Board before engaging in the
         contemplated activity. The Compensation Committee of the Board will
         determine in its sole discretion whether the activity contemplated by
         Executive is a Competitive Activity and, if it so determines, Executive
         will forfeit his right to any and all continued payments and benefits
         under Section 4(b) of this Agreement if he proceeds to engage in the
         Competitive Activity during the Continuation Period.

              (f) Termination Due to Death or Disability. If Executive's
employment is terminated due to death or Disability, then Executive, or
Executive's estate, will receive: (i) payment for all Base Salary and accrued
but unused vacation earned through the date of termination; and (ii) a lump-sum
payment equal to the pro-rata portion of Executive's full Target Bonus, based on
Executive's length of service during the year in which Executive's employment is
terminated due to death or Disability.

              (g) Definitions.

                  (i) "Change of Control." For all purposes under this
         Agreement, "Change of Control" shall mean (1) a merger or consolidation
         in which securities possessing at least fifty percent (50%) of the
         total combined voting power of the Company's outstanding securities are
         transferred to a person or persons different from the persons holding
         those securities immediately prior to such transaction, or (2) the
         sale, transfer or other disposition of all or substantially all of the
         Company's assets in complete liquidation or dissolution of the Company.

                  (ii) "Good Reason." For all purposes under this Agreement,
         "Good Reason" for Executive's resignation will exist if he resigns
         within sixty (60) days of any of the following events: (1) any
         reduction in his Base Salary or Target Bonus; (2) a change in his
         position with the Company or a successor company which substantially
         reduces his duties or level of responsibility; (3) change in his title
         without the express written consent of Executive; (4) any requirement
         that he relocate his place of employment by more than fifty (50) miles
         from his then current office, provided such reduction, change or
         relocation is effected by the Company without his written consent. A
         resignation by Executive under any other circumstance or for any other
         reason will be a resignation without "Good Reason."

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<PAGE>   5

                  (iii) Termination for "Cause." For all purposes under this
         Agreement, a termination for "Cause" shall mean a termination of
         Executive's employment for any of the following reasons: (1)
         misconduct; (2) misappropriation of the assets of the Company; (3)
         conviction of, or a plea of "guilty" or "no contest" to a felony under
         the laws of the United States or any state thereof; (4) committing an
         act of fraud against, or the misappropriation of property belonging to,
         the Company; (5) a material breach of any confidentiality or
         proprietary information agreement between Executive and the Company; or
         (6) continued unsatisfactory performance after being given a written
         warning and at least thirty (30) days to improve performance. A
         termination of Executive's employment in any other circumstance or for
         any other reason will be a termination "Without Cause."

                  (iv) "Disability." For all purposes under this Agreement,
         "Disability" means Executive's inability to carry out his material
         duties under this Agreement for more than six (6) months in any twelve
         (12) consecutive month period as a result of incapacity due to mental
         or physical illness or injury.

                  (v) "Competitive Activity." For the purposes of this
         Agreement, a "Competitive Activity" means any activity in which
         Executive directly or indirectly provides services of any kind or
         nature (whether or not Executive is compensated for such services),
         including, but not limited to, Executive working in an employment,
         advisory or consulting capacity, for any Competitor of the Company.

                  (vi) "Competitor." For purposes of this Agreement,
         "Competitor" is defined as any company involved in the design and
         creation of 3D graphics, animation and/or effects for use in
         entertainment, or educational. Currently, the Competitor's list
         includes, but is not limited to, 3d Labs, ATI, Nvidia, S3, Maxtrox and
         any of their successors or affiliates. During the Continuation Period,
         the Company may reasonably add other companies to the Competitors list.

                  (vii) "October 2000 Option". For the purposes of this
         Agreement, Executive's "October 2000 Option" refers solely to that
         particular option to purchase 186,000 shares of Company Common Stock
         which was granted by the Board to Executive on October 13, 2000.

         5. Non-Solicitation and Non-Disclosure.

              (a) Non-Solicitation. During the period commencing on the
Effective Date of this Agreement and continuing until the second anniversary of
the date when Executive's employment terminates for any reason, Executive shall
not directly or indirectly, personally or through others, solicit or encourage,
or attempt to solicit or encourage (on Executive's own behalf or on behalf of
any other person or entity) for hire any employee or consultant of the Company
or any of the Company's affiliates.

              (b) Non-Disclosure. As a condition of employment, Executive will
execute the Company's standard Proprietary Information Agreement, a copy of
which is attached.

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<PAGE>   6

         6. Successors.

              (a) Company's Successors. This Agreement shall be binding upon any
successor (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) to all or substantially all of the
Company's business and/or assets. For all purposes under this Agreement, the
term "Company" shall include any successor to the Company's business and/or
assets which becomes bound by this Agreement.

              (b) Executive's Successors. This Agreement and all rights of
Executive hereunder shall inure to the benefit of, and be enforceable by,
Executive's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

         7. Arbitration. Executive and the Company agree to arbitrate before a
neutral arbitrator any and all disputes or claims arising from or relating to
Executive's employment with the Company, or the termination of that employment,
including disputes or claims against any current or former agent or employee of
the Company.

              (a) Arbitrable Claims. Arbitrable disputes or claims include those
which arise in tort, contract, or pursuant to a statute, regulation, or
ordinance now in existence or which may in the future be enacted or recognized,
including, but not limited to, the following claims:

                  (i) claims for fraud, promissory estoppel, fraudulent
         inducement of contract or breach of contract or contractual obligation,
         whether such alleged contract or obligation be oral, written, or
         express or implied by fact or law;

                  (ii) claims for wrongful termination of employment, violation
         of public policy and constructive discharge, infliction of emotional
         distress, misrepresentation, interference with contract or prospective
         economic advantage, defamation, unfair business practices, and any
         other tort or tort-like causes of action relating to or arising from
         the employment relationship or the formation or termination thereof;

                  (iii) claims of discrimination, harassment, or retaliation
         under any and all federal, state, or municipal statutes, regulations,
         or ordinances that prohibit discrimination, harassment, or retaliation
         in employment, as well as claims for violation of any other federal,
         state, or municipal statute, regulation, or ordinance, except as set
         forth herein; and

                  (iv) claims for non-payment or incorrect payment of wages,
         commissions, bonuses, severance, employee fringe benefits, stock
         options and the like, whether such claims be pursuant to alleged
         express or implied contract or obligation, equity, the California Labor
         Code, the Fair Labor Standards Act, the Employee Retirement Income
         Securities Act, and any other federal, state, or municipal laws
         concerning wages, compensation or employee benefits.

              (b) Non-Arbitrable Claims. Executive and the Company further
understand and agree that the following disputes and claims are not covered by
the arbitration

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agreement contained in this Section 7 and shall therefore be resolved as
required by the law then in effect:

                  (i) claims for workers' compensation benefits, unemployment
         insurance, or state or federal disability insurance;

                  (ii) claims concerning the validity, infringement,
         enforceability, or misappropriation of any trade secret, patent right,
         copyright, trademark, or any other intellectual or confidential
         property held or sought by Employee or the Company; and

                  (iii) any other dispute or claim that has been expressly
         excluded from arbitration by statute.

              (c) Relief and Review. The Arbitrator shall have the authority to
award any relief authorized by law in connection with the asserted claims or
disputes and shall issue a written Award that sets forth the essential findings
and conclusions on which the Award is based. The Arbitrator's Award shall be
final and binding on both the Company and Employee and it shall provide the
exclusive remedy(ies) for resolving any and all disputes and claims subject to
arbitration under this Agreement. The Arbitrator's Award shall be subject to
correction, confirmation, or vacation, as provided by California Code of Civil
Procedure Section 1285.8 et seq and any applicable California case law setting
forth the standard of judicial review of arbitration Awards.

              (d) Location and Rules. The arbitration shall be conducted in
Santa Clara County, California, or such location as is mutually agreeable to the
parties, in accordance with the National Rules for the Resolution of Employment
Disputes of the American Arbitration Association; provided, however, that the
Arbitrator shall allow the discovery authorized by California Code of Civil
Procedure Section 1283.05 or any other discovery required by California law.
Also, to the extent that any of the National Rules for the Resolution of
Employment Disputes or anything in this Agreement conflicts with any arbitration
procedures required by California law, the arbitration procedures required by
California law shall govern.

              (e) Costs and Attorneys' Fees. The Company will bear the
arbitrator's fee and any other type of expense or cost that Executive would not
be required to bear if he were free to bring the dispute(s) or claim(s) in court
as well as any other expense or cost that is unique to arbitration. Executive
and the Company shall each bear their own attorneys' fees incurred in connection
with the arbitration, and the arbitrator will not have authority to award
attorneys' fees unless a statute or contract at issue in the dispute authorizes
the award of attorneys' fees to the prevailing party, in which case the
arbitrator shall have the authority to make an award of attorneys' fees as
required or permitted by applicable law. If there is a dispute as to whether the
Company or Executive is the prevailing party in the arbitration, the Arbitrator
will decide this issue.

              (f) WAIVER OF RIGHT TO JURY. EXECUTIVE AND THE COMPANY UNDERSTAND
AND AGREE THAT THE ARBITRATION OF DISPUTES AND CLAIMS UNDER THIS AGREEMENT SHALL
BE INSTEAD OF A TRIAL BEFORE A COURT OR JURY OR A HEARING BEFORE A GOVERNMENT
AGENCY.

                                       7
<PAGE>   8

         8. Miscellaneous Provisions.

              (a) Notice. Notices and all other communications contemplated by
this Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by overnight courier, U.S. registered
or certified mail, return receipt requested and postage prepaid. Mailed notices
shall be addressed to Executive at the home address which he most recently
communicated to the Company in writing. In the case of the Company, mailed
notices shall be addressed to its corporate headquarters, and all notices shall
be directed to the attention of its Secretary.

              (b) Modifications and Waivers. No provision of this Agreement
shall be modified, waived or discharged unless the modification, waiver or
discharge is agreed to in writing and signed by Executive and by an authorized
officer of the Company (other than Executive). No waiver by either party of any
breach of, or of compliance with, any condition or provision of this Agreement
by the other party shall be considered a waiver of any other condition or
provision or of the same condition or provision at another time.

              (c) Whole Agreement. No other agreements, representations or
understandings (whether oral or written) which are not expressly set forth in
this Agreement have been made or entered into by either party with respect to
the subject matter of this Agreement. This Agreement, the Proprietary
Information Agreement, and applicable stock option agreements and stock plans,
contain the entire understanding of the parties with respect to the subject
matter hereof.

              (d) Taxes. All payments made under this Agreement shall be subject
to reduction to reflect taxes or other charges required to be withheld by law.

              (e) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
California (except provisions governing the choice of law).

              (f) Severability. The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

              (g) No Assignment. This Agreement and all rights and obligations
of Executive hereunder are personal to Executive and may not be transferred or
assigned by Executive at any time. The Company may assign its rights under this
Agreement to any entity that assumes the Company's obligations hereunder in
connection with any sale or transfer of all or a substantial portion of the
Company's assets to such entity.

              (h) 280G. Executive understands and acknowledges that certain
benefits provided for under this Agreement may constitute "parachute payments"
within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended, (the "Code"). Such parachute payments may be subject to the excise tax
imposed by Section 4999 of the Code. Executive acknowledges and agrees that he
has and will review any tax consequences which may arise as the result of any
such parachute payments with his own tax advisors and that he is relying and
will rely solely on such advisors and not on any representations of the Company
or any of its

                                       8
<PAGE>   9

agent with regard to the possible tax implications of receiving such parachute
payments. Executive further acknowledges and agrees that he is responsible for
his own tax liability which may arise as the result of any such payments.

              (i) Headings. The headings of the paragraphs contained in this
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of any provision of this Agreement.

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

                                       9
<PAGE>   10

         IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by its duly authorized officer, as of the day and year
first above written.

                                       EXECUTIVE

                                       /s/ SCOTT D. SELLERS
                                       ------------------------------------
                                       Scott D. Sellers

                                       3DFX INTERACTIVE, INC.

                                       By: /s/ ALEX M. LEUPP
                                          ---------------------------------
                                       Title: PRESIDENT AND CHIEF
                                              EXECUTIVE OFFICER
                                              -----------------------------

                                       10

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