Document:

Registration Rights Agreement, dated as of June 2, 2003

 Exhibit 4.5 
  

CREDENCE SYSTEMS CORPORATION 
  
 1.50% Convertible Subordinated Notes Due May 15, 2008 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of June 2, 2003 by and between Credence Systems
Corporation, a Delaware corporation (the ”Company”), and Citigroup Global Markets Inc., the initial purchaser (the “Initial Purchaser”), pursuant to the Purchase Agreement, dated as of May 22, 2003, between the
Company and the Initial Purchaser (the “Purchase Agreement”). In order to induce the Initial Purchaser to enter into the Purchase Agreement, the Company has agreed to provide the registration rights set forth in this Agreement. The
execution of this Agreement is a condition to the closing under the Purchase Agreement. 
  

	 	1.	 	Certain Definitions. 

  
 For purposes of this Registration Rights Agreement, the following terms shall have the following meanings: 
  
 (a) “Additional Amounts” has the meaning
assigned thereto in Section 2(d). 
  
 (b)
“Additional Amounts Payment Date” has the meaning assigned thereto in Section 2(d). 
  
 (c) “Affiliate” shall have the meaning specified in Rule 405 under the Securities Act and the terms
“controlling” and “controlled” shall have meanings correlative thereto. 
  
 (d) “Agreement” has the meaning specified in the first paragraph of this Agreement. 
  
 (e) “Applicable Conversion Price” means, as
of any date of determination, $1,000 divided by the Conversion Rate in effect as of such date of determination. 
  
 (f) “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking
institutions in The City of New York are authorized or obligated by law or executive order to close. 
  
 (g) “Closing Date” means the date on which the Notes are initially issued. 
  
 (h) “Commission” means the Securities and
Exchange Commission, or any other federal agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant statute for the particular purpose. 

 (i) “Company” has the meaning specified in the first paragraph of this
Agreement. 
  
 (j) “Conversion
Rate” shall have the meaning assigned such term in the Indenture. 
  
 (k) “Deferral Notice” has the meaning assigned thereto in Section 3(b). 
  
 (l) “Deferral Period” has the meaning assigned thereto in Section 3(b). 
  
 (m) “Effective Period” has the meaning
assigned thereto in Section 2(a). 
  
 (n)
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
  
 (o) “Holder” means each holder, from time to time, of Registrable Securities (including the Initial Purchaser).

  
 (p) “Indenture” means the
Indenture dated as of June 2, 2003, between the Company and The Bank of New York, as Trustee, pursuant to which the Notes are being issued. 
  
 (q) “Initial Placement” means the initial placement of the Securities pursuant to the terms of the Purchase Agreement.

  
 (r) “Initial Purchaser” has
the meaning specified in the first paragraph of this Agreement. 
  
 (s) “Losses” has the meaning assigned thereto in Section 6(d). 
  
 (t) “Material Event” has the meaning assigned thereto in Section 3(a)(iv). 
  
 (u) “Majority Holders” shall mean, on any
date, holders of the majority of the Shares constituting Registrable Securities; for the purposes of this definition, Holders of Notes constituting Registrable Securities shall be deemed to be the Holders of the number of Shares into which such
Notes are or would be convertible as of such date. 
  
 (v) “NASD” shall mean the National Association of Securities Dealers, Inc. 
  
 (w) “NASD Rules” shall mean the Conduct Rules and the By-Laws of the NASD. 
  
 (x) “Notes” means the 1.50% Convertible
Senior Notes Due May 15, 2008, to be issued under the Indenture and sold by the Company to the Initial Purchaser, and securities (other than the Shares) of the Company issued in exchange therefor or in lieu thereof pursuant to the Indenture.

  

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 (y) “Notice and Questionnaire” means a written notice delivered to the
Company containing substantially the information called for by the Form of Selling Securityholder Notice and Questionnaire attached as Annex A to the Offering Memorandum. 
  
 (z) “Notice Holder” means, on any date, any Holder that has delivered a Notice and
Questionnaire to the Company on or prior to such date. 
  
 (aa) “Offering Memorandum” means the Offering Memorandum dated May 22, 2003 relating to the offer and sale of the Securities. 
  
 (bb) “Person” means a corporation, association, partnership, organization, business, individual, government or political
subdivision thereof or governmental agency. 
  
 (cc) “Prospectus” means the prospectus included in any Shelf Registration Statement, as amended or supplemented by any amendment or prospectus supplement, including post-effective amendments, and all materials incorporated
by reference or explicitly deemed to be incorporated by reference in such Prospectus. 
  
 (dd) “Purchase Agreement” has the meaning specified in the first paragraph of this Agreement. 
  
 (ee) “Registrable Securities” means the
Securities; provided, however, that such Securities shall cease to be Registrable Securities when (i) in the circumstances contemplated by Section 2(a), a registration statement registering such Securities under the Securities Act has been
declared or becomes effective and such Securities have been sold or otherwise transferred by the Holder thereof pursuant to such effective registration statement; (ii) such Securities are sold pursuant to Rule 144 under circumstances in which any
legend borne by such Securities relating to restrictions on transferability thereof, under the Securities Act or otherwise, is removed or such Securities are eligible to be sold pursuant to Rule 144(k) or any successor provision; or (iii) such
Securities shall cease to be outstanding (including, in the case of the Notes, upon conversion into Shares). 
  
 (ff) “Registration Default” has the meaning assigned thereto in Section 2(d). 
  
 (gg) “Registration Expenses” has the
meaning assigned thereto in Section 5. 
  
 (hh) “Rule 144,” “Rule 405” and “Rule 415” means, in each case, such rule as promulgated under the Securities Act. 
  
 (ii) “Securities” means, collectively, the Notes and the Shares. 
  
 (jj) “Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
  

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 (kk) “Shares” means the shares of common stock of the Company, par value
$0.001 per share, into which the Notes are convertible or that have been issued upon any conversion from Notes into common stock of the Company. 
  
 (ll) “Shelf Registration Statement” means the shelf registration statement referred to in Section 2(a), as amended or
supplemented by any amendment or supplement, including post-effective amendments, and all materials incorporated by reference or explicitly deemed to be incorporated by reference in such Shelf Registration Statement. 
  
 (mm) “Trust Indenture Act” means the Trust
Indenture Act of 1939, or any successor thereto, and the rules, regulations and forms promulgated thereunder, all as the same shall be amended from time to time. 
  
 (nn) “Trustee” shall have the meaning assigned such term in the Indenture. 
  
 Unless the context otherwise requires, any reference herein to a
“Section” or “clause” refers to a Section or clause, as the case may be, of this Agreement, and the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement
as a whole and not to any particular Section or other subdivision. Unless the context otherwise requires, any reference to a statute, rule or regulation refers to the same (including any successor statute, rule or regulation thereto) as it may be
amended from time to time. 
  

	 	2.	 	Registration Under the Securities Act. 

  
 (a) The Company agrees to file under the Securities Act as promptly as practicable but in any event within 90 days after the Closing Date
a shelf registration statement providing for the registration of, and the sale on a continuous or delayed basis by the Holders of, all of the Registrable Securities, pursuant to Rule 415 or any similar rule that may be adopted by the Commission. The
Company agrees to use its reasonable best efforts to cause the Shelf Registration Statement to become or be declared effective within 180 days after the Closing Date and to keep such Shelf Registration Statement continuously effective until the
earliest of (i) the second anniversary of the Closing Date or, if later, the second anniversary of the last date of issuance of any Option Securities (as defined in the Purchase Agreement), (ii) the date on which all Notes and Shares may be sold by
non-affiliates of the Company pursuant to paragraph (k) of Rule 144 (or any successor provision) promulgated under the Securities Act, and (iii) such time as there are no longer any Registrable Securities outstanding (the “Effective
Period”). None of the Company’s securityholders (other than Holders of Registrable Securities) shall have the right to include any of the Company’s securities in the Shelf Registration Statement. 
  
 (b) The Company further agrees that it shall cause the Shelf
Registration Statement and the related Prospectus and any amendment or supplement thereto, as of the effective date of the Shelf Registration Statement or such amendment or supplement, (i) to comply in all material respects with the applicable
requirements of the Securities Act; and (ii) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein (in 

  

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the case of the Prospectus, in the light of the circumstances under which they were made) not misleading, and the Company agrees to furnish to the Holders of
the Registrable Securities copies of any supplement or amendment prior to its being used or promptly following its filing with the Commission. If the Shelf Registration Statement, as amended or supplemented from time to time, ceases to be effective
for any reason at any time during the Effective Period (other than because all Registrable Securities registered thereunder shall have been sold pursuant thereto or shall have otherwise ceased to be Registrable Securities), the Company shall use its
reasonable best efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof. 
  
 (c) Each Holder of Registrable Securities agrees that if such Holder wishes to sell Registrable Securities pursuant to the Shelf
Registration Statement and related Prospectus, it will do so only in accordance with this Section 2(c) and Section 3(b). Each Holder of Registrable Securities wishing to sell Registrable Securities pursuant to the Shelf Registration Statement and
related Prospectus agrees to deliver a Notice and Questionnaire to the Company at least ten (10) days prior to any intended distribution of Registrable Securities under the Shelf Registration Statement. From and after the date the Shelf Registration
Statement is declared effective, the Company shall, as promptly as is practicable after the date a Notice and Questionnaire is delivered, and in any event within ten (10) days after such date, (i) if required by applicable law, file with the
Commission a post-effective amendment to the Shelf Registration Statement or prepare and, if required by applicable law, file a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or
file any other required document so that the Holder delivering such Notice and Questionnaire is named as a selling security holder in the Shelf Registration Statement and the related Prospectus in such a manner as to permit such Holder to deliver
such Prospectus to purchasers of the Registrable Securities in accordance with applicable law and, if the Company shall file a post-effective amendment to the Shelf Registration Statement, use its reasonable efforts to cause such post-effective
amendment to be declared effective under the Securities Act as promptly as is practicable; (ii) provide such Holder copies of any documents filed pursuant to Section 2(c)(i); and (iii) notify such Holder as promptly as practicable after the
effectiveness under the Securities Act of any post-effective amendment filed pursuant to Section 2(c)(i); provided that if such Notice and Questionnaire is delivered during a Deferral Period, the Company shall so inform the Holder delivering
such Notice and Questionnaire and shall take the actions set forth in clauses (i), (ii) and (iii) above upon expiration of the Deferral Period in accordance with Section 3(b). Notwithstanding anything contained herein to the contrary, the Company
shall be under no obligation to name any Holder that is not a Notice Holder as a selling securityholder in any Shelf Registration Statement or related Prospectus; provided, however, that any Holder that becomes a Notice Holder pursuant
to the provisions of this Section 2(c) (whether or not such Holder was a Notice Holder at the time the Shelf Registration Statement was declared effective) shall be named as a selling securityholder in the Shelf Registration Statement or related
Prospectus in accordance with the requirements of this Section 2(c). 
  

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 (d) If any of the following events (any such event a “Registration
Default”) shall occur, then liquidated damages (the “Additional Amounts”) shall become payable to Holders in respect of the Securities as follows: 
  
 (i) if the Shelf Registration Statement is not filed with the Commission within 90 days following the
Closing Date, then commencing on the 91st day after the Closing Date, Additional Amounts shall accrue on the principal amount of the outstanding Notes that are Registrable Securities and on the Applicable Conversion Price of any outstanding Shares
that are Registrable Securities at a rate of 0.25% per annum for the first 90 days following the 90th day and at a rate of 0.5% per annum thereafter; or 
  
 (ii) if the Shelf Registration Statement is not declared effective by the Commission within 180 days following the Closing Date, then
commencing on the 181st day after the Closing Date, Additional Amounts shall accrue on the principal amount of the
outstanding Notes that are Registrable Securities and on the Applicable Conversion Price of any outstanding Shares that are Registrable Securities at a rate of 0.25% per annum for the first 90 days following the 180th day and at a rate of 0.5% per annum thereafter; or 
  
 (iii) if the Company has failed to perform its obligations set forth in Section 2(c) hereof within the time
periods required therein, then, provided that the failure of the Company is not solely due to the failure of a Holder of Registrable Securities to perform its obligations set forth in Section 2(c) hereof within the time periods specified therein,
commencing on the first day after the date by which the Company was required to perform such obligations, Additional Amounts shall accrue on the principal amount of the outstanding Notes that are Registrable Securities and on the Applicable
Conversion Price of any outstanding Shares that are Registrable Securities at a rate of 0.25% per annum for the first 90 days and at a rate of 0.5% per annum thereafter; provided, however, that in no event shall Additional Amounts accrue on specific
Registrable Securities with respect to which the Company is then in compliance with its obligations set forth in Section 2(c) hereof; 
  
 (iv) if the Shelf Registration Statement has been declared effective but such Shelf Registration Statement ceases to be effective at any
time during the Effective Period (other than pursuant to Section 3(b) hereof), then commencing on the day such Shelf Registration Statement ceases to be effective, Additional Amounts shall accrue on the principal amount of the outstanding Notes that
are Registrable Securities and on the Applicable Conversion Price of any outstanding Shares that are Registrable Securities at a rate of 0.25% per annum for the first 90 days following such date on which the Shelf Registration Statement ceases to be
effective and at a rate of 0.5% per annum thereafter; or 
  
 (v) if the aggregate duration of Deferral Periods in any period exceeds the number of days permitted in respect of such period pursuant to Section 3(b) hereof, then commencing on the day the aggregate duration of
Deferral Periods in 

  

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any period exceeds the number of days permitted in respect of such period (and again on the first day of any subsequent Deferral Period during such period),
Additional Amounts shall accrue on the principal amount of the outstanding Notes that are Registrable Securities and on the Applicable Conversion Price of any outstanding Shares that are Registrable Securities at a rate of 0.25% per annum for the
first 90 days and at a rate of 0.5% per annum thereafter; 
  
 provided, however, that the Additional Amounts rate on the Securities shall not exceed in the aggregate 0.5% per annum and shall not be payable under more than one clause above for any given period of time, except that if
Additional Amounts would be payable under more than one clause above, but at a rate of 0.25% per annum under one clause and at a rate of 0.5% per annum under the other, then the Additional Amounts rate shall be the higher rate of 0.5% per annum;
provided further, however, that (1) upon the filing of the Shelf Registration Statement (in the case of clause (i) above), (2) upon the effectiveness of the Shelf Registration Statement (in the case of clause (ii) above), (3)
upon the Company’s performing its obligations set forth in Section 2(c) hereof within the time periods required therein (in the case of clause (iii) above), (4) upon the effectiveness of the Shelf Registration Statement which had ceased to
remain effective (in the case of clause (iv) above), (5) upon the termination of the Deferral Period that caused the limit on the aggregate duration of Deferral Periods in a period set forth in Section 3(b) to be exceeded (in the case of clause (v)
above) or (6) upon the termination of certain transfer restrictions on the Securities as a result of the application of Rule 144(k) or any successor provision, Additional Amounts on the Securities as a result of such clause, as the case may be,
shall cease to accrue. 
  
 Additional Amounts on
the Securities, if any, will be payable in cash on May 15 and November 15 of each year (the “Additional Amounts Payment Date”) to holders of record of outstanding Registrable Securities on each preceding May 1 and November 1. The
date of determination of the Applicable Conversion Price of any outstanding Shares that are Registrable Securities shall be the Business Day immediately preceding the Additional Amounts Payment Date; provided that any Additional Amounts
accrued with respect to any Notes or converted into Shares on a conversion date prior to the Registration Default shall, in any such event, be paid instead to the Holder who submitted such Notes or portion thereof for conversion on the applicable
conversion date or promptly following the conversion date). Following the cure of all Registration Defaults requiring the payment of Additional Amounts by the Company to the Holders of Registrable Securities pursuant to this Section, the accrual of
Additional Amounts will cease (without in any way limiting the effect of any subsequent Registration Default requiring the payment of Additional Amounts by the Company). 
  
 The Trustee shall be entitled, on behalf of Holders of Securities, to seek any available remedy for the
enforcement of this Agreement, including for the payment of any Additional Amounts. Notwithstanding the foregoing, the parties agree that the sole monetary damages payable for a violation of the terms of this Agreement with respect to which
liquidated damages are expressly provided shall be as set forth in this Section 2(d). Nothing shall preclude a Notice Holder or Holder of Registrable Securities 

  

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from pursuing or obtaining specific performance or other equitable relief with respect to this Agreement. 
  

	 	3.	 	Registration Procedures. 

  
 The following provisions shall apply to the Shelf Registration Statement filed pursuant to Section 2: 
  
 (a) The Company shall: 
  
 (i) prepare and file with the Commission a registration
statement with respect to the shelf registration on any form which may be utilized by the Company and which shall permit the disposition of the Registrable Securities in accordance with the intended method or methods thereof, as specified in writing
by the Holders of the Registrable Securities, and use its reasonable efforts to cause such registration statement to become effective in accordance with Section 2(a) above; 
  
 (ii) before filing any Shelf Registration Statement or Prospectus or any amendments or supplements thereto
with the Commission, furnish to the Initial Purchaser copies of all such documents proposed to be filed and use reasonable efforts to reflect in each such document when so filed with the Commission such comments as the Initial Purchaser reasonably
shall propose within three (3) Business Days of the delivery of such copies to the Initial Purchaser; 
  
 (iii) use its reasonable efforts to prepare and file with the Commission such amendments and post-effective amendments to the Shelf
Registration Statement and file with the Commission any other required document as may be necessary to keep such Shelf Registration Statement continuously effective until the expiration of the Effective Period; cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and comply with the provisions of the Securities Act applicable to it
with respect to the disposition of all Securities covered by such Shelf Registration Statement during the Effective Period in accordance with the intended methods of disposition by the sellers thereof set forth in such Shelf Registration Statement
as so amended or such Prospectus as so supplemented; 
  
 (iv) promptly notify the Notice Holders of Registrable Securities (A) when such Shelf Registration Statement or the Prospectus included therein or any amendment or supplement to the Prospectus or post-effective amendment has been filed with
the Commission, and, with respect to such Shelf Registration Statement or any post-effective amendment, when the same has become effective, (B) of any request, following the effectiveness of the Shelf Registration Statement, by the Commission or any
other Federal or state governmental authority for amendments or supplements to the Shelf Registration Statement or related Prospectus or for additional information, (C) of the issuance by the 

  

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Commission of any stop order suspending the effectiveness of such Shelf Registration Statement or the initiation or written threat of any proceedings for
that purpose, (D) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or written threat of any proceeding for such
purpose, (E) of the occurrence of (but not the nature of or details concerning) any event or the existence of any fact (a “Material Event”) as a result of which any Shelf Registration Statement shall contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or any Prospectus shall contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided, however, that no notice by the Company shall be required pursuant to this
clause (E) in the event that the Company either promptly files a Prospectus supplement to update the Prospectus or a Form 8-K or other appropriate Exchange Act report that is incorporated by reference into the Shelf Registration Statement, which, in
either case, contains the requisite information with respect to such Material Event that results in such Shelf Registration Statement no longer containing any untrue statement of material fact or omitting to state a material fact necessary to make
the statements contained therein not misleading), (F) of the determination by the Company that a post-effective amendment to the Shelf Registration Statement will be filed with the Commission, which notice may, at the discretion of the Company (or
as required pursuant to Section 3(b)), state that it constitutes a Deferral Notice, in which event the provisions of Section 3(b) shall apply or (G) at any time when a Prospectus is required to be delivered under the Securities Act, that the Shelf
Registration Statement, Prospectus, Prospectus amendment or supplement or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and
regulations of the Commission thereunder; 
  
 (v)
prior to any public offering of the Registrable Securities pursuant to the Shelf Registration Statement, use reasonable efforts to register or qualify or cooperate with the Notice Holders in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any Notice Holder reasonably requests in writing (which
request may be included in the Notice and Questionnaire); prior to any public offering of the Registrable Securities pursuant to the Shelf Registration Statement, use its reasonable efforts to keep each such registration or qualification (or
exemption therefrom) effective during the Effective Period in connection with such Notice Holder’s offer and sale of Registrable Securities pursuant to such registration or qualification (or exemption therefrom) and do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions of such Registrable Securities in the manner set forth in the Shelf Registration Statement and the related Prospectus; provided, that the Company will not be
required to (i) qualify as a foreign corporation or as 

  

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a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Agreement or (ii) take any action that would
subject it to general service of process in suits or to taxation in any such jurisdiction where it is not then so subject; 
  
 (vi) use its reasonable best efforts to prevent the issuance of, and if issued, to obtain the withdrawal of any order suspending the
effectiveness of the Shelf Registration Statement or any post-effective amendment thereto, and to lift any suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction in which they have been qualified for sale,
in each case at the earliest practicable date; 
  
 (vii) upon reasonable notice, for a reasonable period prior to the filing of the Shelf Registration Statement, and throughout the Effective Period, make available at reasonable times at the Company’s principal place of business or such
other reasonable place for inspection by a representative appointed by the Notice Holders in connection with an underwritten offering (or any underwriter, placement agent or counsel acting on their behalf), who shall certify to the Company that they
have a current intention to sell their Registrable Securities pursuant to the Shelf Registration Statement, such financial and other information and books and records of the Company, and cause the officers, directors, employees and independent
certified public accountants of the Company to respond to such inquiries, as shall be reasonably necessary, in the judgment of the counsel to such Notice Holders, to conduct a reasonable “due diligence” investigation; provided,
however, that each such representative appointed by the Notice Holders in connection with an underwritten offering shall be required to maintain in confidence and not to disclose to any other Person any information or records reasonably
designated by the Company in writing as being confidential, until such time as (A) such information becomes a matter of public record (whether by virtue of its inclusion in the Shelf Registration Statement or otherwise) or (B) such Person shall be
required so to disclose such information pursuant to a subpoena or order of any court or other governmental agency or body having jurisdiction over the matter (subject to the requirements of such order, and only after such Person shall have given
the Company prompt prior written notice of such requirement and the opportunity to contest the same or seek an appropriate protective order); 
  
 (viii) if reasonably requested by the Initial Purchaser or any Notice Holder, promptly incorporate in a Prospectus supplement or
post-effective amendment to the Shelf Registration Statement such information as the Initial Purchaser or such Notice Holder shall, on the basis of a written opinion of nationally-recognized counsel experienced in such matters, determine to be
required to be included therein by applicable law and make any required filings of such Prospectus supplement or such post-effective amendment; provided, that the Company shall not be required to take any actions under this Section 3(a)(viii)
that are not, in the reasonable opinion of counsel for the Company, in compliance with applicable law; 
  

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 (ix) promptly furnish to each Notice Holder and the Initial Purchaser, upon their request
and without charge, at least one (1) conformed copy of the Shelf Registration Statement and any amendments thereto, including financial statements but excluding schedules, all documents incorporated or deemed to be incorporated therein by reference
and all exhibits (unless requested in writing to the Company by such Notice Holder or the Initial Purchaser, as the case may be); and 
  
 (x) during the Effective Period, deliver to each Notice Holder in connection with any sale of Registrable Securities pursuant to the Shelf
Registration Statement, without charge, as many copies of the Prospectus relating to such Registrable Securities (including each preliminary prospectus) and any amendment or supplement thereto as such Notice Holder may reasonably request; and the
Company hereby consents (except during such periods that a Deferral Notice is outstanding and has not been revoked) to the use of such Prospectus or each amendment or supplement thereto by each Notice Holder in connection with any offering and sale
of the Registrable Securities covered by such Prospectus or any amendment or supplement thereto in the manner set forth therein. 
  
 (b) Upon (A) the issuance by the Commission of a stop order suspending the effectiveness of the Shelf Registration Statement or the
initiation of proceedings with respect to the Shelf Registration Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence of any Material Event as a result of which the Shelf Registration Statement
shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or any Prospectus shall contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (C) the occurrence or existence of any corporate
development that, in the discretion of the Company, makes it appropriate to suspend the availability of the Shelf Registration Statement and the related Prospectus, the Company will (i) in the case of clause (B) above, subject to the third sentence
of this provision, as promptly as practicable prepare and file a post-effective amendment to such Shelf Registration Statement or a supplement to the related Prospectus or any document incorporated therein by reference or file any other required
document that would be incorporated by reference into such Shelf Registration Statement and Prospectus so that such Shelf Registration Statement does not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein not misleading, and such Prospectus does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, and, in the case of a post-effective amendment to the
Shelf Registration Statement, subject to the third sentence of this provision, use reasonable efforts to cause it to be declared effective as promptly as is practicable, and (ii) give notice to the Notice Holders that the availability of the Shelf
Registration Statement is suspended (a “Deferral Notice”). Upon receipt of any Deferral 

  

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Notice, each Notice Holder agrees not to sell any Registrable Securities pursuant to the Shelf Registration Statement until such Notice Holder’s receipt
of copies of the supplemented or amended Prospectus provided for in clause (i) above, or until it is advised in writing by the Company that the Prospectus may be used, and has received copies of any additional or supplemental filings that are
incorporated or deemed incorporated by reference in such Prospectus. The Company will use its reasonable best efforts to ensure that the use of the Prospectus may be resumed (x) in the case of clause (A) above, as promptly as practicable, (y) in the
case of clause (B) above, as soon as, in the sole judgment of the Company, public disclosure of such Material Event would not be prejudicial to or contrary to the interests of the Company or, if necessary to avoid unreasonable burden or expense, as
soon as practicable thereafter and (z) in the case of clause (C) above, as soon as, in the discretion of the Company, such suspension is no longer appropriate; provided that the period during which the availability of the Shelf Registration
Statement and any Prospectus is suspended (the “Deferral Period”), without the Company incurring any obligation to pay liquidated damages pursuant to Section 2(d), shall not exceed ninety (90) days in the aggregate in any twelve
(12) month period, forty-five (45) days in the aggregate in any fiscal quarter or sixty (60) consecutive days in any twelve (12) month period. 
  
 (c) Each Holder of Registrable Securities agrees that upon receipt of any Deferral Notice from the Company, such Holder shall forthwith
discontinue (and cause any placement or sales agent or underwriters acting on their behalf to discontinue) the disposition of Registrable Securities pursuant to the registration statement applicable to such Registrable Securities until such Holder
(i) shall have received copies of such amended or supplemented Prospectus and, if so directed by the Company, such Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies, then in such
Holder’s possession of the Prospectus covering such Registrable Securities at the time of receipt of such notice or (ii) shall have received notice from the Company that the disposition of Registrable Securities pursuant to the Shelf
Registration may continue. 
  
 (d) The Company
may require each Holder of Registrable Securities as to which any registration pursuant to Section 2(a) is being effected to furnish to the Company such information regarding such Holder and such Holder’s intended method of distribution of such
Registrable Securities as the Company may from time to time reasonably request in writing, but only to the extent that such information is required in order to comply with the Securities Act. Each such Holder agrees to notify the Company as promptly
as practicable of any inaccuracy or change in information previously furnished by such Holder to the Company or of the occurrence of any event in either case as a result of which any Prospectus relating to such registration contains or would contain
an untrue statement of a material fact regarding such Holder or such Holder’s intended method of disposition of such Registrable Securities or omits to state any material fact regarding such Holder or such Holder’s intended method of
disposition of such Registrable Securities required to be stated therein or necessary to make the statements therein not misleading, and promptly to furnish to the Company any additional information required to correct and update any previously
furnished information or required so that such Prospectus shall not contain, with respect to such Holder or the 

  

 12 

 
disposition of such Registrable Securities, an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading. 
  
 (e) The Company shall comply with all applicable rules and regulations of the Commission and make generally available to its securityholders earning statements (which need not be audited) satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days after the end of any 12-month period (or 90 days after the end of any 12-month period if such period is a
fiscal year) commencing on the first day of the first fiscal quarter of the Company commencing after the effective date of the Shelf Registration Statement, which statements shall cover said 12-month periods. 
  
 (f) The Company shall provide a CUSIP number for all
Registrable Securities covered by the Shelf Registration Statement not later than the effective date of such Shelf Registration Statement and provide the Trustee for the Notes and the transfer agent for the Shares with printed certificates for the
Registrable Securities that are in a form eligible for deposit with The Depository Trust Company. 
  
 (g) The Company shall use its reasonable efforts to provide such information as is required for any filings required to be made with the
National Association of Securities Dealers, Inc. 
  
 (h) Until the expiration of two years after the Closing Date, the Company will not, and will not permit any of its “affiliates” (as defined in Rule 144) to, resell any of the Securities that have been reacquired by any of them
except pursuant to an effective registration statement under the Securities Act. 
  
 (i) The Company shall cause the Indenture to be qualified under the Trust Indenture Act in a timely manner. 
  
 (j) The Company shall enter into such customary agreements
and take all such other necessary and lawful actions in connection therewith (including those requested by the Majority Holders of the Registrable Securities being sold) in order to expedite or facilitate disposition of such Registrable Securities.

  

	 	4.	 	Holder’s Obligations. 

  
 Each Holder agrees, by acquisition of the Registrable Securities, that no Holder of Registrable Securities shall be entitled to sell any of such
Registrable Securities pursuant to the Shelf Registration Statement or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with a Notice and Questionnaire as required pursuant to Section 2(c) hereof (including the
information required to be included in such Notice and Questionnaire) and the information set forth in the next sentence. Each Notice Holder agrees promptly to furnish to the Company all information required to be disclosed in order to make the
information previously furnished to the Company by such Notice Holder not misleading and any other information regarding such Notice Holder and the distribution of such Registrable Securities as 

  

 13 

 
may be required to be disclosed in the Shelf Registration Statement under applicable law or pursuant to Commission comments. Each Holder further agrees not
to sell any Registrable Securities pursuant to the Shelf Registration Statement without delivering, or causing to be delivered, a Prospectus to the purchaser thereof and, following termination of the Effective Period, to notify the Company, within
10 business days of a request by the Company, of the amount of Registrable Securities sold pursuant to the Shelf Registration Statement and, in the absence of a response, the Company may assume that all of the Holder’s Registrable Securities
were so sold. 
  

	 	5.	 	Registration Expenses. 

  
 The Company agrees to bear and to pay or cause to be paid promptly upon request being made therefor all expenses incident to the Company’s
performance of or compliance with this Agreement, including (a) all Commission and any NASD registration and filing fees and expenses, (b) all fees and expenses in connection with the qualification of the Securities for offering and sale under the
State securities and Blue Sky laws referred to in Section 3(a)(v) hereof, including reasonable fees and disbursements of counsel for the placement agent or underwriters, if any, in connection with such qualifications, (c) all expenses relating to
the preparation, printing, distribution and reproduction of the Shelf Registration Statement, the related Prospectus, each amendment or supplement to each of the foregoing, the certificates representing the Securities and all other documents
relating hereto, (d) fees and expenses of the Trustee under the Indenture, any escrow agent or custodian, and of the registrar and transfer agent for the Shares, (e) fees, disbursements and expenses of counsel and independent certified public
accountants of the Company (including the expenses of any opinions or “cold comfort” letters required by or incident to such performance and compliance) and (f) reasonable fees, disbursements and expenses of counsel for the Holders of
Registrable Securities retained in connection with the Shelf Registration Statement, and fees, expenses and disbursements of any other Persons, including special experts, retained by the Company in connection with such registration (collectively,
the “Registration Expenses”). To the extent that any Registration Expenses are incurred, assumed or paid by any Holder of Registrable Securities or any placement agent therefor or underwriter thereof, the Company shall reimburse
such Person for the full amount of the Registration Expenses so incurred, assumed or paid promptly after receipt of a documented request therefor. Notwithstanding the foregoing, the Holders of the Registrable Securities being registered shall pay
all placement agent fees and commissions and underwriting discounts and commissions attributable to the sale of such Registrable Securities and the fees and disbursements of any counsel or other advisors or experts retained by such Holders
(severally or jointly), other than the counsel and experts specifically referred to above. 
  

	 	6.	 	Indemnification and Contribution. 

  
 (a) The Company agrees to indemnify and hold harmless each Holder of Securities covered by any Shelf Registration Statement, the
directors, officers, employees, Affiliates and agents of each such Holder and each Person who controls any such Holder within the meaning of either the Securities Act or the Exchange Act against any and all losses, claims, damages or liabilities,
joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, 

  

 14 

 
claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material
fact contained in the Shelf Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any preliminary Prospectus or the Prospectus, in the light of the circumstances under which
they were made), and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by it in connection with investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or
alleged omission made therein in reliance upon and in conformity with written information relating to the party claiming indemnification furnished to the Company by or on behalf of the party claiming indemnification specifically for inclusion
therein. This indemnity agreement shall be in addition to any liability that the Company may otherwise have. 
  
 The Company also agrees to indemnify as provided in this Section 6(a) or contribute as provided in Section 6(d) hereof to Losses of each
underwriter, if any, of Securities registered under the Shelf Registration Statement, its directors, officers, employees, Affiliates or agents and each Person who controls such underwriter on substantially the same basis as that of the
indemnification of the selling Holders provided in this paragraph (a) and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement. 
  
 (b) Each Holder of securities covered by the Shelf Registration Statement severally and not jointly agrees
to indemnify and hold harmless the Company, each of its directors, each of its officers who signs the Shelf Registration Statement and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the
same extent as the foregoing indemnity from the Company to each such Holder, but only with reference to written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion in the documents
referred to in the foregoing indemnity. This indemnity agreement will be in addition to any liability which any such Holder may otherwise have. 
  
 (c) Promptly after receipt by an indemnified party under this Section 6 or notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 6, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not
relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses; and (ii) will not,
in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel (including local
counsel) of the indemnifying party’s choice at the indemnifying party’s 

  

 15 

 
expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be
responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the indemnifying party, retained by the indemnified party or parties except as set forth below); provided, however, that such
counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel (including local counsel) to represent the indemnified party in an action, the indemnified party shall have the right
to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified
party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded that there may be legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory
to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of
the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an
unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding. 
  
 (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 6 is unavailable to or insufficient to hold harmless
an indemnified party for any reason, then each applicable indemnifying party shall have a joint and several obligation to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in
connection with investigating or defending such loss, claim, liability, damage or action) (collectively “Losses”) to which such indemnified party may be subject in such proportion as is appropriate to reflect the relative benefits
received by such indemnifying party, on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the Shelf Registration Statement which resulted in such Losses; provided, however, that in no case
shall any subsequent Holder of any Securities be responsible, in the aggregate, for any amount in excess of the purchase discount or commission applicable to such Security, as set forth in the Offering Memorandum, nor shall any underwriter be
responsible for any amount in excess of the underwriting discount or commission applicable to the securities purchased by such underwriter under the Shelf Registration Statement which resulted in such Losses. If the allocation provided by the
immediately preceding sentence is unavailable for any reason, the indemnifying party and the indemnified party shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of such
indemnifying party, on the one hand, and such indemnified party, on the other hand, in connection with the statements or omissions which resulted in such Losses as well as any 

  

 16 

 
other relevant equitable considerations. Benefits received by the Company shall be deemed to be equal to the sum of (x) the total net proceeds from the
Initial Placement (before deducting expenses) as set forth in the Offering Memorandum and (y) the total amount of Additional Amounts which the Company was not required to pay as a result of registering the securities covered by the Shelf
Registration Statement which resulted in such Losses. Benefits received by the Initial Purchaser shall be deemed to be equal to the total purchase discounts and commissions as set forth in the Offering Memorandum, and benefits received by any other
Holders shall be deemed to be equal to the value of receiving Securities registered under the Securities Act. Benefits received by any underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set forth on the
cover page of the Prospectus forming a part of the Shelf Registration Statement which resulted in such Losses. Relative fault shall be determined by reference to, among other things, whether any untrue or any alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to information provided by the indemnifying party, on the one hand, or by the indemnified party, on the other hand, the intent of the parties and their relative knowledge, access
to information and opportunity to correct or prevent such untrue statement or omission. The parties agree that it would not be just and equitable if contribution were determined by pro rata allocation (even if the Holders were treated as one entity
for such purpose) or any other method of allocation which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d), no Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each Person who controls a Holder within the meaning of either
the Securities Act or the Exchange Act and each director, officer, employee and agent of such Holder shall have the same rights to contribution as such Holder, and each Person who controls the Company within the meaning of either the Securities Act
or the Exchange Act, each officer of the Company who shall have signed the Shelf Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and
conditions of this paragraph (d). 
  
 (e) The
provisions of this Section 6 shall remain in full force and effect, regardless of any investigation made by or on behalf of any Holder or the Company or any of the indemnified Persons referred to in this Section 6, and shall survive the sale by a
Holder of securities covered by the Shelf Registration Statement. 
  

	 	7.	 	Rule 144. 

  
 The Company covenants to the Holders of Registrable Securities that the Company shall use its reasonable efforts to timely file the reports required to be
filed by it under the Exchange Act or the Securities Act (including the reports under Section 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted by the Commission under the Securities Act) and the rules and
regulations adopted by the Commission thereunder, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by
Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any similar or 

  

 17 

 
successor rule or regulation hereafter adopted by the Commission. Upon the request of any Holder of Registrable Securities in connection with that
Holder’s sale pursuant to Rule 144, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. 
  

	 	8.	 	Inconsistent Agreements. 

  
 The Company has not entered into, and agrees not to enter into, any agreement with respect to its securities that is inconsistent with the rights granted
to the Holders herein or that otherwise conflict with the provisions hereof. 
  

	 	9.	 	Miscellaneous. 

  
 (a) Entire Agreement; Amendments. This Agreement and the other writings referred to herein (including the Indenture) or delivered
pursuant hereto which form a part hereof contain the entire understanding of the parties and supersedes all prior agreements and understandings between the parties with respect to its subject matter. This Agreement may be amended and the observance
of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument duly executed by the Company and the Majority Holders of the Registrable Securities at
the time outstanding. 
  
 (b) Notices. All
notices, requests, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered by hand, if delivered personally or by courier, or three days after being deposited in the
mail (registered or certified mail, postage prepaid, return receipt requested) as follows: 
  
 (i) If to the Company, to it at 215 Fourier Avenue, Fremont, California 94359, Attention: General Counsel, with a copy to Morrison &
Foerster, LLP, 755 Page Mill Road, Palo Alto, California 94304, Attention: William D. Sherman, Esq.; 
  
 (ii) If to the Initial Purchaser, to the address set forth in the Purchase Agreement; and 
  
 (iii) If to a Holder, to the address of such Holder set
forth in the security register, the Notice and Questionnaire or other records of the Company, 
  
 or to such other address as the Company, the Initial Purchaser or any such Holder may have furnished to the other parties in writing in accordance herewith, except that notices of change of address shall be effective
only upon receipt. 
  
 (c) Remedies.
Nothing shall preclude a Notice Holder or Holder of Registrable Securities from pursuing or obtaining specific performance or other equitable relief with respect to this Agreement. 
  

 18 

 (d) Successors. This Agreement shall be binding upon, shall inure to the benefit
of and shall be enforceable by the respective successors and assigns of the parties hereto. In the event that any transferee of any Holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by gift, bequest,
purchase, operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be deemed a party hereto for all purposes and such Registrable Securities shall be held subject to all of the terms of this Agreement,
and by taking and holding such Registrable Securities such transferee shall be entitled to receive the benefits of, and be conclusively deemed to have agreed to be bound by and to perform, all of the applicable terms and provisions of this
Agreement. 
  
 (e) Survival. The
respective indemnities, agreements, representations, warranties and each other provision set forth in this Agreement or made pursuant hereto shall remain in full force and effect regardless of any investigation (or statement as to the results
thereof) made by or on behalf of any Holder of Registrable Securities, any director, officer or partner of such Holder, any agent or underwriter or any director, officer or partner thereof, or any controlling person of any of the foregoing, and
shall survive delivery of and payment for the Registrable Securities pursuant to the Purchase Agreement and the transfer and registration of Registrable Securities by such Holder. 
  
 (f) Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK. 
  
 (g) Headings. The descriptive headings of the several Sections and paragraphs of this Agreement are inserted for convenience only,
do not constitute a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement. 
  
 (h) Counterparts. This Agreement may be executed by the parties in counterparts, each of which shall be deemed to be an original,
but all such respective counterparts shall together constitute one and the same instrument. 
  
 (i) Severability. In the event that any one of more of the provisions contained herein, or the application thereof in any
circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or
affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
  
 (j) Securities Held by the Company, etc. Whenever the consent or approval of Holders of a specified percentage of Securities is
required hereunder, Securities held by the Company or its Affiliates (other than subsequent Holders of Securities if such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such Securities) shall not be counted in
determining whether such consent or approval was given by the Holders of such required percentage. 
  

 19 

 Agreed to and accepted as of the date referred to above. 
  

	 Very truly yours,

	
	CREDENCE SYSTEMS CORPORATION
		
	 By:
	 	 /s/ Graham J. Siddall

	 Name: Graham J. Siddall

	 Title:   Chief Executive Officer

  

 20 

	CITIGROUP GLOBAL MARKETS INC.
		
	 By:
	 	 /s/ Laurence Braham

	 	 	 Name:     Laurence Braham

	 	 	 Title:       DirectorExhibit  10.1
                                                                           AXESS

RAPIDTRON
3151 Airway Avenue, Building Q,
Costa  Mesa,
CA  92626

                                                               December 11, 2002

DISTRIBUTION  CONTRACT

Dear  John,

With regard to your request I am able to confirm

1)  according  to  the  distribution agreement paragraph 4.3, a minimum purchase
volume  of  US$  3,000,000  in  period  May  02  until  May  03  is  committed.

2) according to the above mentioned paragraph a letter of credit for US$ 750,000
shall  be  issued  by  Rapidtron

Axess  AG  will  release Rapidtron from that obligation under the condition that
the payments and agreements defined in the Report 23 Nov 02 will be fulfilled by
Rapidtron.

With  best  regards,

Wolfram  Kocznar

CEO  Axess  AG

<PAGE>
                             DISTRIBUTION AGREEMENT

1.   PREAMBLE
     TEAMAXESS  TICKETING  GMBH,  Habach  221,  A-5321  Koppl,  (hereinafter
     "TEAMAXESS")  develops  and  distributes  systems  for  access  control, in
     particular  for  ski  areas  and  similar  applications  such  as stadiums,
     entertainment  complexes,  etc.
     RAPLDTRON  INC.,  3991 MacArthur Blvd., Suite 400, Newport Beach, CA 92660,
     (hereinafter "DISTRIBUTOR') is a Delaware Corporation and plans, sells, and
     maintains  systems  for  access  control  in  America.

2.   SUBJECT  MATTER  OF  THE  AGREEMENT

     2.1. TEAMAXESS  assigns  the  Distributor  the  right  to  market  specific
          Contractual Products (Section 3) in specific Business Sectors (Section
          5)  in  specified Contractual Territories (Section 5) according to the
          conditions  of  this  agreement.
     2.2. This  agreement does not extend to other products produced or marketed
          by  TeamAxess  currently  or  in  the  future.
     2.3. The  Distributor  markets the Contractual Products on its own account.
          Neither the Distributor nor TeamAxess is authorized to act in the name
          of  the  other.
     2.4. The  Distributor  is  obligated  to  observe  the  guidelines  and
          instructions  of  TeamAxess  for  the  marketing  of  the  Contractual
          Products.  These  guidelines are included as Annex C to this agreement
          and  may  be  updated  by  TeamAxess  from  time  to  time.
3.   CONTRACTUAL  PRODUCTS
     3.1. Contractual  products  are  the  systems  and components of the ticket
          system  AX  400,  pure  successor  products,  improvements,  and
          enhancements,  or  functionally  similar  products, to the Contractual
          Products.
     3.2. TeamAxess sells the Contractual Products exclusively under its general
          contract  conditions  according to Annex A in the version valid at the
          time  of  order  of  the agreement and at the prices in effect on that
          date.  In  the event of a conflict between this Distribution Agreement
          and  the  Business  Conditions  according  to  Annex  A  has priority.
     3.3. The  systems  and  components  of  the  ticket  system  AX 400 and the
          respective current prices for the Business Sectors mentioned are found
          in  Annex  B.  Delivery  and  fulfillment site for all transactions is
          Salzburg  (FOB  Salzburg).  The  following  product  groups  are
          differentiated:
          3.3.1.  Standard  Hardware  &  Software  (commercial  products)
          3.3.2.  System-specific  Hardware  (TeamAxess  developments)
          3.3.3.  System-specific  Software  (TeamAxess  developments)
          33.4.   Services
          3.3.5.  Tickets  &  Accessories
          3.3.6.  Special  Developments

4.   PERIOD  OF  THE  AGREEMENT

     4.1. This  agreement  is  open-ended  and  takes  effect  on  May  1, 2000.

     4.2. Either  party  to  the agreement may give a 12-month advance notice to
          terminate  this agreement as of the end of the calendar month of April
          of  any  year.

     4.3. TeamAxess  waives  its right to give advance notice before May 1 2003.
          In  return,  the  Distributor  is  obligated  to the following minimum
          purchase  volumes  of  the  Contractual  Products  from  TeamAxess:

          May  2000  -  April  2001          500,000.00 US$
          May  2001  -  April  2002        2,000,000.00 US$
          May  2002  -  April  2003         3,000,00000 US$

          The  Distributor  is  obligated, as a partial guarantee of the minimum
          purchase  obligation,  to issue an irrevocable Letter of Credit to the
          order  of  TeamAxess  for  each  year  as  follows:

<PAGE>
          May00  -  April  01   500,000.00 US$   issued  no  later than 12/21/00
          May01  -  April  02   500,000.00 US$   issued  no  later than 05/01/01
          May02  -  April  03   750,000.00 US$   issued  no  later than 05/01/02

5.   CONTRACTUAL  TERRITORY  &  BUSINESS  SECTORS

TeamAxess  grants  the  Distributor  the  following  distribution rights for the
Contractual  Territories  and  Business  Sectors  mentioned:

     5.1. TRANSPORTATION: EXCLUSIVE DISTRIBUTION LICENSE for the business sector
          "TRANSPORTATION  (Monorail,  subway, people mover)" in the Contractual
          Territory  "NORTH  AMERICA".
          - A prerequisite for this distribution license is that the Distributor
          obtains  the  project  "Las  Vegas  Monorail"  by  December  30, 2000.
          -  Bombardier  is  the  exclusive  partner  of  Rapidtron
     5.2. FITNESS  CLUBS: EXCLUSIVE DISTRIBUTION LICENSE for the business sector
          Fitness  Clubs" in the Contractual Territory "NORTH AMERICA", "CENTRAL
          AND  "SOUTH  AMERICA".
     5.3. UNIVERSITY  & COLLEGE APPLICATIONS: EXCLUSIVE DISTRIBUTION LICENSE for
          the  business  sector  UNIVERSITY  &  COLLEGE  APPLICATIONS  in  the
          Contractual  Territory  "NORTH  AMERICA".
     5.4. AMUSEMENT  PARKS:  EXCLUSIVE  DISTRIBUTION  LICENSE  for  the business
          sectors  "AMUSEMENT  PARKS,  ZOOS  AND  MUSEUMS'  in  the  Contractual
          Territory  'NORTH  AMERICA".
     5.5. SKI  APPLICATIONS:  NONEXCLUSIVE DISTRIBUTION LICENSE for the business
          sector  "SKI  RESORTS"  in  the  Contractual Territory "NORTH AMERICA.
         5.5.1. If  TeamAxess  delivers  directly  to  the  purchaser  in  the
               Contractual  Territory  of  Ski resorts, the Distributor is has a
               claim  for  compensation  at  the rate of 10%. A prerequisite for
               this  is that the Distributor is actually active in the marketing
               process,  for  example,  exhibits at the corresponding fairs, The
               claim  for  compensation  iscalculated  on  the invoice amount ex
               factory,  excluding  taxes  and  fees,  less  any cash or in-kind
               discounts.  The  claim  for  compensation  comes  into being upon
               remuneration claim is created as of the receipt of the payment by
               TeamAxess  and  is  payable  30  days  after  receipt of payment.
         5.5.2. TeamAxess will make no direct sales to contractual partners of
               the Distributor, provided that the Distributor has identified the
               partner  in  question  by name in writing before signature of the
               direct  transaction.
     5.6. The  parties  agree  that  to retain the Distribution Licenses minimum
          volumes  are  necessary  for  each individual business sector for each
          business  year.  These  minimum  volumes  will  be  applied  fairly by
          TeamAxess  for  the first time as of January 1, 2001 for the following
          contract year. The minimum volumes for the business sectors "Fitness",
          "University"  and  "Transportation"  will  be  mutually  agreed  on.
     5.7. TeamAxess  grants,  in the case of exclusive distribution licenses, no
          right  to  third  parties for distribution of the Contractual Products
          during  the  period  of  this  agreement.
     5.8. The  Distributor  pledges  to  recruit  no  customers, to establish no
          branch  offices,  and to take no other measures for active acquisition
          of  customers  outside the Contractual Territory, unless TeamAxess has
          been  previously  notified  and  agreed  on.
          The  Distributor  shall immediately forward to TeamAxess any inquiries
          and  contacts  which  fall  outside  the  Contractual  Products,  the
          Contractual  Territory,  or  the  Business  Sectors.
          TeamAxess  shall  forward  to the Distributor any inquiries from third
          parties  about  Contractual  Products if they concern Business Sectors
          and Contractual Territories for which the Distributor has an exclusive
          distribution  license.

6.   OBLIGATIONS  OF  TEAMAXESS

<PAGE>
     6.1. TeamAxess  shall  keep  the  Distributor  informed  concerning
          characteristics,  developments,  and  improvements  of the Contractual
          Products  to  the  extent  this  is necessary for sales, planning, and
          maintenance  of  the  Contractual  Products.
          TeamAxess  shall provide to the Distributor support on issues of sales
          and  technology  with regard to the Contractual Products at reasonable
          intervals.

     6.2. TeamAxess shall make available to the Distributor advertising material
          to the extent that TeamAxess has such and shall train the personnel of
          the  Distributor  to  a reasonable extent and at reasonable intervals.
          Such  training  schedules  shall  be  established by mutual agreement:
          training  shall  be  at  TeamAxess  headquarters  and without separate
          invoicing.  The  costs  of  travel  and  meals  shall  be borne by the
          Distributor.
     6.3. TearnAxess  shall  replace  for  the  Distributor  defective parts and
          components,  to  the extent these are returned within the framework of
          warranty  work  of  the  Distributor  within the warranty period of 12
          months  after  delivery.  There  are no more extensive liabilities and
          warranties  whatsoever  on  the  part  of  TeamAxess.
     6.4. TeamAxess  shall  support  the  Distributor in obtaining the necessary
          authorizations  for  the  sale  of  the  Contractual  Products  in the
          Contractual  Territories  within the framework of its capabilities. In
          particular, TeamAxess shall provide necessary product descriptions and
          inspection  samples  in  a  timely  manner.
     6.5. TeamAxess shall include the Contractual Territories of the Distributor
          in  its  product  liability  insurance and shall forward a copy of the
          corresponding  policies.  TeamAxess  assumes  no  further  liability.
     6.6. TeamAxess  shall  make  every  effort  that  the  Contractual Products
          produced  by  it  are  free  of  third-party rights. In the event that
          Contractual  Products  infringe  on  patent  rights  of third parties,
          TeamAxess  shall
          -  support  the defense against claims by providing information to the
          extent  available
          -  or  shall  alter the products such that there is no infringement of
          third-party  rights
          -  or  pay  any  license  fee  to  the  third  party
          If  TeamAxess cannot free Contractual Products from third-party patent
          rights,  the Distributor has the right to withdraw from the respective
          order.  Such  a  withdrawal  must  occur  no later than 3 months after
          delivery.  There  is  no  more  extensive  liability  on  the  part of
          TeamAxess.

7.   OBLIGATIONS  OF  THE  DISTRIBUTOR

     7.1. The  Distributor  looks  after  the  interests  of  TeamAxess with the
          diligence  of  a  prudent  businessperson and promotes the sale of the
          Contractual  Products  in  the  Business  Sectors  and  Contractual
          Territories  to  the  best  of  its  ability.
     7.2. The  tasks  of  the  Distributor  include,  in  particular:
          72.1.  Marketing  plan  and  market  reports
          7.2.2. Sale  of  the  Contractual  Products
          72.3.  Project development, (planning and preparation for involvement)
          7.2.4. Analysis  and  adaptation  of  the  applications  software
          7.25.  On-site  startup  of  the  ticket  systems
          7.2.6. Problem  solving  in  the  framework  of  the  warranty
          7.2.7. Service  and  maintenance
          7.2.8. Training  of  the operators and service personnel of customers
     7.3. The Distributor shall deliver to TeamAxess no later than 20 days after
          the  end of each quarter a written report concerning the status of its
          distribution activities (customer contacts, offers, agreements signed,
          competitive  activities,  problems,  and  warranty situations, desired
          features  of  the Contractual Products, etc.) and a revised projection
          of  the  marketing  plan  for  the  following  12  months.
     7.4. The  Distributor  is  obligated  to maintain specialized personnel for
          project  development  and  personnel  for  appropriate  service  and
          maintenance  for  the  business  sectors  and  contractual territories
          assigned,  and  in  particular,  to  provide  appropriately  trained
          personnel.
     7.5. The  Distributor  will  neither produce, market, nor develop products,
          intermediate  products  or  sub-products  or  services  which  must be
          developed  subsequent  to  the  production of the product which are in
          competition  with  the Contractual Products, nor support third parties
          therein.  The  Distributor  also extends this obligation in writing to
          its  agents and other employees. The Distributor pledges not to engage
          directly  or  indirectly in a competitive relationship within a period
          of 6 months after termination of the contractual relationship with the
          Contractual  Products,  intermediate  products,  or  sub-products  or
          services  which  are  essential  to  production  of  the  product.
     7.6. If  the  Distributor needs additional products that are not offered by
          TeamAxess  to  realize its business, TeamAxess will provide support in
          the  development  or  production  of  such  additional  products. This

<PAGE>
          support  may  be withheld if the interests of TeamAxess are negatively
          affected  thereby  or  the  support  may  be  subject  to  additional
          conditions  on  the  Distributor  or  to  third parties on the part of
          TeamAxess.
          If TeamAxess cannot develop a product needed by the distributor due to
          the  lack of timely availability of resources (talent or capital) then
          the  distributor  may joint venture with TeamAxess for the development
          of  this  product.

8.   PRICING
     8.1. The  guidelines of TeamAxess conceming distribution of the Contractual
          Products  may  also  include  price  recommendations.
     8.2. The  Distributor  shall  inform  TeamAxess  concerning  any  special
          conditions  in  substantial  projects  and  shall  follow  special
          instructions  in  these  or  other  special  cases,
     8.3. TeamAxess  shall  inform the Distributor about new products. TeamAxess
          reserves  the  right  to remove products from its offerings at its own
          discretion  with  a  9-month  notification.

9.   INTANGIBLE  RIGHTS

     9.1. The  Distributor  shall make use of the intangible rights of TeamAxess
          only  within  the  framework  of  this agreement and instructions from
          TeamAxess.  It  will  not register or enforce any patents, trademarks,
          trade  names,  or  logos,  which  are similar or identical to those of
          TeamAxess  inside  or  outside  the  Contractual  Territory.
     9.2. The Distributor shall stress its capacity as a distribution partner of
          TeamAxess  and  follow  instructions of TeamAxess regarding the brand.
          The  Distributor  shall,  in  particular, indicate on all products and
          publications  that  TeamAxess is the manufacturer of these Contractual
          Products.
     9.3. The  parties are in agreement that information of the respective other
          party  not  generally  known  including  such  data  as  organization,
          business  matters,  customer  lists,  sales  information,  operating
          processes,  technical  data,  software  and  know-how,  and  other
          information  constitute  valuable  property  rights  and  that  this
          proprietary  data  must  be  kept secret from third parties even after
          expiration  of  the  agreement.

10.  EARLY  TERMINATION
     TeamAxess  may  terminate  this  agreement  for  cause,  if
    10.1  Insolvency  proceedings  are  opened  with regard to the assets of the
          Distributor
    10.2. The  Distributor  abuses  the  intangible rights of TeamAxess and does
          not  desist  in  this  within  30  days  after  written  request  from
          TeamAxess.
    10.3. The  Distributor violates its obligations pursuant to 7.5 and does not
          desist  in  this  within 30 days after written request from TeamAxess,
          whereby in this request, the type of violation of the obligations must
          be  stated  with  adequate  precision.
    10.4. The  Distributor  falls  below  the minimum volume pursuant to Section
          4.3.
    10.5. The  Distributor  is  no  longer  capable  for  any reason to meet its
          obligations  pursuant to this agreement. TeamAxess must present such a
          reason  with adequate precision in writing and give the Distributor 30
          days  to  remedy  this  breach  of  obligation.
    10.6. If  a  change  in  the  partnership  situation of the Distributor or a
          change  in  the  management  situation  occurs  which  jeopardizes the
          interests  of  TeamAxess,  such as an agreement or sale of shares to a
          direct  competitor  of  TeamAxess.

11.  RESULTS  OF  TERMINATION  OF  THE  AGREEMENT
After  termination  of  this  agreement  for  any  reason  whatsoever,  e.g., by
expiration,  early  termination, the following obligations apply to the parties:

     11.1. All open balances from deliveries must be promptly reimbursed. Orders
of  the  Distributor  delivered  before  termination  of  the agreement shall be
executed  under  the conditions agreed to if they have been confirmed in writing
by  TeamAxess.

<PAGE>
    11.2. The  Distributor  has  the  right  to  sell  off his products still in
          inventory  according  to  the  provisions  of  this  agreement.
    11.3. The  obligation  to  protect  business  secrets  remains  in  force.
    11.4. The  Distributor  ceases  use  of  immaterial  assets  of  TeamAxess
          immediately.  The  Distributor  will  change  any  similar name of its
          company  to  a  different  unmistakable  name.
    11.5. The  documents  and  items  placed  at the disposal of the Distributor
          must  be  returned  immediately to TeamAxess. This also applies to any
          transcriptions  or  copies of documents and, in particular, to all EDP
          programs  and  data.
    11.6. The  Distributor  supports  TeamAxess  in the takeover of customers by
          TeamAxess or a new distribution partner and surrenders all information
          and  documents  necessary  for  this.  If  TeamAxess designates no new
          distribution  partner,  the  Distributor  has  the  right  to  request
          delivery  from  TeamAxess  of replacement parts and accessories to the
          extent  these  are necessary for the service and operation of existing
          systems  with  Contractual  Products.
    11.7. No claim whatsoever for compensation for expenses or marketing by the
          Distributor  exists,

12.   LEGAL  SUCCESSION
The  transfer  of  rights  and  obligations  under  this  Agreement,  either  by
Distributor  or  by  TeamAxess  to  third parties requires express prior written
consent  of  the  other party. Notwithstanding the foregoing no consent shall be
required  for a transfer of this Agreement in its entirety to a corporation that
acquires  all  of  the stock or assets of a party (a Successor Entity), provided
that  the  transferring  party  provides to the other party (i) at least 30 days
prior written notice of the anticipated date of such transfer and (ii) a written
agreement  from  the Successor Entity agreeing to be bound by and to comply with
this  Agreement.  In  no  event shall a transferring party be relieved, however,
from  its  obligations  hereunder  by  reason  of  any such transfer without the
express written consent of the non-transferring party. Subject to the foregoing,
this  Agreement  is  binding  on  and  shall inure to the benefit of each of the
parties  hereto  and  their  respective  successor  and  assigns.

13.   FORMS  AND  DEADLINES
No amendment or modification of this Agreement shall be enforceable unless it is
set  forth  in  a written agreement or document signed by each of the parties to
this Agreement, No waiver by either party of any breach or default of any of the
covenants  or  agreements herein contained of the other party shall be effective
unless  it is contained in a written agreement or document signed by each of the
parties  to  this Agreement and no such waiver shall be deemed to be a waiver as
to  any  subsequent  or  similar  breach  or default or any breach or default of
different  covenant  or  agreement  .  Except  as  otherwise  set  forth in this
Agreement, no right or remedy herein conferred upon either party is exclusive of
any  other  right  or  remedy  herein  or  by  law  provided  or  permitted.

14.   PLACE  OF  FULFILLMENT  AND  LEGAL  VENUE
Only Austrian law, other than the non-compete clause as already mentioned, shall
apply  to  this  Agreement  including  the  issue  of the valid existence of the
agreement.  The headquarters of TeamAxess is expressly agreed to as the place of
fulfillment, For all disputes arising from this Agreement including the issue of
the  valid  existence  thereof  and  its  preliminary-  and  after-effects,  the
competency of the relevant competent court of the city of Salzburg is agreed to.
Such legal proceedings, however, shall be conducted in the English language, and
judgment  upon  the  award  rendered  may  be  entered  in  any  court  having
jurisdiction.  Each  party  shall  bear  its  own  expenses  of such proceeding.

15.   SEVERABILITY  CLAUSE
If  any provisions of this Agreement are or become invalid or unenforceable, the
remainder  of  the  Agreement  shall be unaffected thereby and parties shall use
their  reasonable  and  diligent  efforts to modify the offending provision in a
manner that makes it enforceable without altering the intent or purpose thereof.

16.   COUNTERPARTS

This Agreement may be executed in duplicate counterparts, each of which shall be
deemed  to  be  an  original; provided however, such counterparts shall together
constitute  only  one  instrument.

17.   NOTICES

Notices  to  be  given  to any party under this Agreement shall not be effective
unless  in  writing and hand-delivered or mailed by certified or registered mail
to  the  party  to whom notice is to be given at the address

<PAGE>
stated on the first page of this Agreement or if sent by telefax to the party to
be notified to such telefax number as such party hereafter designates by written
notice  to  the  other  party. Notices sent by mail shall be deemed to have been
given  ten  (10)  days  after  the  postmark thereof. All other notices shall be
deemed  to  have  been given on the date of receipt thereof Any party may change
its  address  by  giving  written  notice  of such change in the manner provided
herein,

18.   LANGUAGE

This  Agreement  has  been  originally written in the German language. It may be
translated,  for  convenience,  into  other  languages.  However, in the case of
conflict  or  disagreement,  the executed German language version shall prevail.

19.   INTERPRETATION;HEADINGS

This  Agreement  is  the  result of arms-length negotiations between the parties
hereto  and  no provision hereof, because of any ambiguity found to be contained
therein  or  otherwise, shall be construed against a party by reason of the fact
that  such  party  or  its  legal  counsel  was  the principal draftsman of that
provision.  The  section, subsection and any paragraph headings contained herein
are  for the purpose of convenience only and are not intended to define or limit
or affect, and shall not be considered in connection with, the interpretation of
any  of  the  terms  or provisions of this Agreement. Unless otherwise indicated
elsewhere  in this Agreement, (i) the term "or" shall not be exclusive, (ii) the
term  "including"  shall  mean "including, but not limited to" and (c) the terms
"herein,"  "hereof," "hereto," "hereunder" and other terms similar to such terms
shall refer to this Agreement as a whole and not merely to the specific section,
subsection,  paragraph  or  clause  where  such  terms  may appear; and (Hi) the
Recitals  to this Agreement are fully incorporated into and are an integral part
of  this  Agreement.

IN  WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be duly
executed  by  their  duly  authorized  officers  as  of  5-6,  2000.

Rapidtron,  Inc.

By:  /s/  John  Creel
   ------------------
     John  Creel

     TeamAxess:TEAMAXESS  TICKETING  GMBH

     By:  /s/ Robert Gruber
        -------------------------
         Robert  Gruber

<PAGE>

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