Document:

Exhibit 10.29

 

SERVICE AGREEMENT

 

This SERVICE AGREEMENT, effective January 1, 2012 (the “Effective Date”), is by and between Veeco Instruments Inc., a Delaware corporation (the “Company”), and Edward H. Braun (“Mr. Braun”).

 

The Company and Mr. Braun are parties to a Service Agreement, effective July 24, 2008 (the “Prior Service Agreement”), that sets forth the compensation and benefits to which Mr. Braun shall be entitled for his service as a member of the Board of Directors through December 31, 2011.  Mr. Braun is presently serving a three-year term as director that will expire at the annual meeting of the Company’s stockholders in May, 2012.  The Board has determined that it is appropriate to amend the terms of Mr. Braun’s Prior Service Agreement to provide for his continued service to the Board.

 

The Company and Mr. Braun hereby agree as follows:

 

1.         Service and Compensation.

 

(a)        Mr. Braun shall continue to serve in his present capacity as Chairman of the Board from January 1, 2012 until the expiration of his current term in 2012 (the “Current Service Period”), after which he may stand for reelection.  During the Current Service Period, the Company shall continue to compensate Mr. Braun for his service at his current rate of $200,000 per year. Mr. Braun will receive this compensation through the Company’s regular, bi-weekly payroll process.  During this period, Mr. Braun shall not be entitled to any additional compensation, including, without limitation, bonuses, equity awards, meeting fees, retainers or other compensation, for his service on the Board or in any other capacity.

 

(b)        Provided that Mr. Braun is reelected by the Company’s stockholders in the 2012 election of directors, then for periods of Board service after the Current Service Period, the Company shall pay Mr. Braun such compensation and equity awards as are consistent with the Company’s then current Board Compensation Policy, provided that any annual and/or quarterly retainers shall be paid through the Company’s regular, bi-weekly payroll process.

 

(c)        While serving on the Board, Mr. Braun shall be entitled to participate in all group health and insurance programs available generally to senior executives of the company (including in the case of health programs, continued coverage for Mr. Braun’s spouse and eligible dependents).  In the event that Mr. Braun’s participation in any such plan or program is prohibited by operation of law or by the terms of such plan or program, the Company shall arrange to provide Mr. Braun with benefits substantially similar to those which Mr. Braun would have been entitled to receive had he been eligible to participate in such plans and programs.  In any event, the level of benefits provided to Mr. Braun under such plans while serving on the Board shall be equal to the level of benefits provided for active executives of the Company.

 

 

(d)        In addition, the Company will reimburse Mr. Braun for all reasonable and necessary traveling expenses and other disbursements incurred by Mr. Braun in connection with his service on the Board, upon presentation by Mr. Braun to the Company of appropriate vouchers or documentation.

 

(e)        While serving on the Board, Mr. Braun shall be treated as an employee for purposes of the Company’s stock incentive plans and any prior employment agreements which Mr. Braun had with the Company, i.e., he shall retain the right to exercise any options to purchase shares of the Company’s stock under such plans for the duration of his service period plus any applicable post-employment period thereafter, as specified in the applicable plan, subject in all cases to the earlier expiration of the original term of each such option.

 

2.         Release of Claims.  Mr. Braun hereby knowingly and voluntarily releases and forever discharges the Company, and its subsidiaries, successors and assigns and its and their officers, directors, employees and agents, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries, of and from any and all claims, known and unknown, which Mr. Braun, Mr. Braun’s heirs, executors, administrators, successors and assigns have or may have against such persons as of the Effective Date.

 

3.         Non-Competition.  For so long as Mr. Braun is receiving payments or other benefits from the Company hereunder and for twelve (12) months thereafter (the “Noncompete Period”), Mr. Braun will not, without the prior written consent of the Company, directly or indirectly, engage or invest in, own, manage, operate, finance, control or participate in the ownership, management, operation, financing or control of, be employed by, associated with, or in any manner connected with, lend Mr. Braun’s name to, lend Mr. Braun’s credit to or render services or advice to, any business whose products or activities compete in whole or in part with the former, current or currently contemplated products or activities of the Company or any of its subsidiaries, in any state of the United States or in any country in which the Company or any of its subsidiaries sells products or conducts business; provided, however, that Mr. Braun may purchase or otherwise acquire up to (but not more than) one percent of any class of securities of any enterprise (but without otherwise participating in the activities of such enterprise) if such securities are listed on any national or regional securities exchange or have been registered under Section 12(g) of the Securities Exchange Act of 1934, as amended.  Mr. Braun agrees that this covenant is reasonable with respect to its duration, geographical area, and scope.  During the Noncompete Period, Mr. Braun will, within ten days after accepting any employment, advise the Company of the identity of any employer of Mr. Braun.  Receipt of the benefits provided under Section 1 is conditioned upon compliance by Mr. Braun with this Section 3.

 

4.         Non-Solicitation; Non-Hire.  For the Noncompete Period, Mr. Braun hereby agrees that he will not, directly or indirectly, either for himself or any other person:  (a)

 

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induce or attempt to induce any employee of the Company or any of its subsidiaries to leave the employ of the Company or such subsidiary, (b) in any way interfere with the relationship between the Company and its subsidiaries and any employee of the Company or any of its subsidiaries, (c) employ, or otherwise engage as an employee, independent contractor or otherwise, any current or former employee of the Company or any of its subsidiaries, other than such former employees who have not worked for the Company or any of its subsidiaries in the prior 12 months; (d) induce or attempt to induce any customer, supplier, licensee or business relation of the Company or any of its subsidiaries to cease doing business with the Company or such subsidiary, or in any way interfere with the relationship between the Company and its subsidiaries and any customer, supplier, licensee or business relation of the Company or any of its subsidiaries; or (e) solicit the business of any person known to Mr. Braun to be a customer of the Company or any of its subsidiaries, whether or not Mr. Braun had personal contact with such person, with respect to products or activities which compete in whole or in part with the former, current or currently contemplated products or activities of the Company and its subsidiaries or the products or activities of the Company and its subsidiaries in existence or contemplated at the time of termination of Mr. Braun’s employment.  Receipt of the benefits provided under Section 1 is conditioned upon compliance by Mr. Braun with this Section 4.

 

5.         Injunctive Relief.  A breach of Mr. Braun’s obligations under Section 3 or 4 hereof may not be one which is capable of being easily measured by monetary damages and, consequently, Mr. Braun specifically agrees that such sections may be enforced by injunctive relief.

 

6.         Governing Law; Severability.  This Agreement will be governed by, and construed and enforced in accordance with, the laws of the State of New York, without regard to the conflicts of law principles thereof.  If any provision of this Agreement is prohibited or unenforceable in any jurisdiction, then such provision will, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction will not invalidate or render unenforceable such provision in any other jurisdiction.

 

7.         Withholding.  The Company is authorized to withhold, or cause to be withheld, from any payment or benefit under this Agreement the full amount of any applicable withholding taxes or other applicable deductions.

 

8.         Assignment; Successors.  This Agreement is personal to Mr. Braun and Mr. Braun shall not assign or transfer this Agreement or any of his rights or obligations hereunder.  The provisions hereof will inure to the benefit of, and be binding upon, the respective heirs, legal representatives and successors of Mr. Braun and each successor of the Company, whether by merger, consolidation, transfer of all or substantially all of its assets or otherwise.

 

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9.         Entire Agreement; Amendment; Waiver.  This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements or understandings among the parties with respect thereto, except for (a) the Employment Agreement dated April 1, 2003, as amended June 9, 2006, between the Company and Mr. Braun as it relates to the treatment upon termination of Mr. Braun’s employment of stock options granted between the date of such agreement and April 26, 2007, which provisions shall continue in accordance with their terms with respect to such stock options.  This Agreement may be amended or terminated only in a writing signed by the parties hereto.  The waiver by either party of a breach of any provision of this Agreement by the other party must be in writing and will not operate, or be construed as, a waiver of any subsequent breach by such other party.

 

*     *     *     *     *

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above written.

 

	
VEECO   INSTRUMENTS INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:/s/   Roger D. McDaniel
    	
 
    	
/s/   Edward H. Braun
    
	
 
    	
 
    	
 
    
	
Name:
    	
Roger D. McDaniel
    	
 
    	
Edward   H. Braun
    
	
 
    	
on behalf of the
    	
 
    	
 
    
	
 
    	
Board of   Directors
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
February 3,   2012
    	
 
    	
Date:  February 3, 2012
    
					

 

4Exhibit 10.30

 

 

1 Terminal Drive  ·  Plainview, New York 11803 U.S.A.  ·  Phone (516) 677-0200  ·  Fax (516) 677-0380  ·  www.veeco.com

 

January 30, 2012

 

 

Dr. William J. Miller

44 Old Hills Ct.

Greenlawn, NY 11740

 

Dear Bill:

 

I am very pleased to confirm additional details relating to your recent appointment to the position of Executive Vice President, Process Equipment, reporting to John Peeler, CEO.

 

The elements of your compensation package are as follows:

 

·      Effective January 1, 2012, your bi-weekly base salary will be increased to $15,961.60, which, when annualized, is equal to $415,001.60.  This will serve as your base salary for 2012.

·      Your Management Bonus Plan target has been increased, effective January 1, 2012, from 60% to 70% of your base salary for the plan year (January 1 through December 31).  For 2012, your bonus will be based on the Corporate financial targets coupled with your individual performance.

 

I am also pleased to offer to you an enhanced severance arrangement. In the event you are terminated without “Cause” or you resign for “Good Reason” (each as defined below):

 

·      Veeco will provide you with 52 weeks of severance in the form of a salary continuation benefit based on your base salary then in effect (but without regard to any salary reduction program then in place), less applicable deductions, and

·      If you are enrolled in the Company’s healthcare plans at the time of termination and you elect to continue coverage in accordance with the continuation of benefits requirements of COBRA, your contribution amount will be the normal employee contribution rate for the period of your severance, and

·      You will have the right to exercise any then outstanding and vested stock option for up to twelve (12) months, not to exceed the original expiration date of the option.

 

As used herein, “Good Reason” shall mean a reduction of your base salary, other than as part of a salary reduction program affecting management employees generally, and “Cause” shall mean (i) your willful and substantial misconduct, (ii) your repeated, after written notice, neglect of duties or failure to perform your assigned duties, (iii) your commission of any material fraudulent act with respect to Veeco or its business, or (iv) your conviction of (or plea of no contest to) a crime constituting a felony.

 

These severance benefits compliment but do not duplicate any benefits to which you may be entitled under the Sr. Executive Change in Control policy, of which you are a participant, in connection with a change in control.  Receipt of the severance benefits described above is conditioned upon your execution (without revocation) of a general release of claims in a form satisfactory to Veeco, including noncompetition and non-solicitation provisions for the duration of the period during which salary continuation benefits are payable as described above.

 

over...

 

 

 

Innovation.  Performance.  Brilliant.

 

 

Dr. William J. Miller

January 30, 2012

Page Two

 

 

All of the other elements of your current compensation and benefits will continue unchanged.  This letter is not a contract of employment and this letter does not alter the “at-will” nature of your employment with Veeco.  This means that the employment relationship is non-contractual, for no fixed period and may be terminated by you or by Veeco at any time, with or without cause.  As described above, however, you may be entitled to severance benefits depending upon the circumstances of the termination of employment.  In addition, no subsequent oral or written agreements on this subject shall be valid unless they are in writing and signed by an authorized representative of Veeco.

 

Kindly indicate your acceptance by signing and returning a copy of this letter to my attention no later than February 6, 2012.

 

Bill, I’d like to personally congratulate you and wish you much success in your new role at Veeco.  Should you have any questions regarding the above items, please contact me at (516) 677-0200, extension 1440.

 

	
Sincerely,
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Robert W. Bradshaw
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Robert W. Bradshaw
    	
 
    	
 
    
	
Sr. Vice President,   Human Resources
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ACCEPTED and AGREED:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ William J. Miller
    	
 
    	
January 30, 2012
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
William J. Miller
    	
 
    	
Date

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