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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 25, 2019

 

ONTO INNOVATION INC.

(Exact name of Registrant as Specified in Its Charter)

 

Delaware

 

001-39110

 

94-2276314

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

     

16 Jonspin Road

Wilmington, Massachusetts

 

01887

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (978) 253-6200

(Former Name or Former Address, if Changed Since Last Report): Nanometrics Incorporated, 1550 Buckeye Drive, Milpitas, California 95035

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of exchange

on which registered

Common Stock, $0.001 par value per share

 

ONTO

 

New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 


Introductory Note

As previously disclosed in the Current Report on Form 8-K filed by Nanometrics Incorporated, a Delaware corporation (“Nanometrics”), with the Securities and Exchange Commission (the “SEC”) on June 24, 2019, on June 23, 2019, Nanometrics entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Rudolph Technologies, Inc., a Delaware corporation (“Rudolph”), and PV Equipment Inc., a Delaware corporation and a direct wholly-owned subsidiary of Nanometrics (“Merger Sub”).

On October 25, 2019, upon the terms and subject to the conditions set forth in the Merger Agreement and in accordance with the applicable provisions of the Delaware General Corporation Law, Merger Sub merged with and into Rudolph (the “Merger”). At the effective time of the Merger (the “Effective Time”), the separate corporate existence of Merger Sub ceased and Rudolph continued its existence under Delaware law as the surviving corporation in the Merger and a direct wholly-owned subsidiary of Nanometrics, which was renamed “Onto Innovation Inc.” (“Onto Innovation”) upon the consummation of the Merger.

Item 2.01. Completion of Acquisition or Disposition of Assets.

As described above, on October 25, 2019, Rudolph and Nanometrics completed their previously announced Merger. As a result of the Merger, Rudolph became a direct wholly-owned subsidiary of Onto Innovation (formerly Nanometrics). At the Effective Time, each issued and outstanding share of common stock of Rudolph, par value $0.001 per share (“Rudolph Common Stock”) (other than shares owned by Rudolph or Nanometrics), was automatically converted into the right to receive 0.8042 (the “Exchange Ratio”) shares of Onto Innovation common stock, par value $0.001 per share (“Onto Innovation Common Stock”), and cash in lieu of any fractional shares of Onto Innovation Common Stock any former holder of Rudolph Common Stock would otherwise be entitled to receive.

At the Effective Time, options to purchase shares of Rudolph Common Stock outstanding immediately prior to the Effective Time (“Rudolph Options”), all of which were fully vested, were assumed by Nanometrics and converted into an option to acquire that number of shares of Onto Innovation Common Stock (each, an “Onto Innovation Option”) equal to the product obtained by multiplying (x) the number of shares of Rudolph Common Stock underlying the applicable Rudolph Option immediately prior to the Effective Time multiplied by (y) the Exchange Ratio, rounded down to the nearest whole share number of Onto Innovation Common Stock, and with a per share exercise price equal to (A) the per share exercise price applicable to such Rudolph Option immediately prior to the Effective Time divided by (B) the Exchange Ratio, with the resulting exercise price per share rounded up to the nearest whole cent. Each assumed and converted Onto Innovation Option will continue to be governed by substantially the same terms and conditions as were applicable to the Rudolph Option immediately prior to the Effective Time (including the term, exercisability and vesting schedule as were applicable to the Rudolph Option immediately before the Effective Time).

At the Effective Time, each Rudolph time-based restricted stock unit and performance-based restricted stock unit that was outstanding immediately prior to the Effective Time and was not vested (each, a “Rudolph RSU”) was assumed by Nanometrics and converted into an award to receive that number of shares of Onto Innovation Common Stock (each, an “Onto Innovation RSU”) equal to the product of (x) the number of shares of Rudolph Common Stock subject to such Rudolph RSU immediately prior to the Effective Time multiplied by (y) the Exchange Ratio, with the resulting number of Onto Innovation shares rounded up or down to the nearest whole share of Onto Innovation Common Stock. Each assumed and converted Onto Innovation RSU will continue to have, and will be subject to, substantially the same terms and conditions as applied to the applicable Rudolph RSU immediately prior to the Effective Time (including the vesting and settlement schedule(s) as were applicable to the corresponding Rudolph RSU immediately before the Effective Time).

Any share of Rudolph Common Stock underlying a Rudolph RSU that is vested and so is not assumed by Nanometrics, but as to which such underlying share of Rudolph Common Stock was not issued by the Effective Time (including any performance-based Rudolph RSUs) were issued as of immediately prior to the Effective Time and were treated as a share of Rudolph Common Stock issued and outstanding immediately prior to the Effective Time and received the same consideration provided to holders of Rudolph Common Stock, subject to the terms and conditions of the Merger Agreement.


The issuance of Onto Innovation Common Stock in connection with the Merger, as described above, was registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the registration statement on Form S-4 (File No. 333- 233304), filed by Nanometrics with the SEC and declared effective on September 10, 2019.

The foregoing summary description of the completion of the Merger does not purport to be complete and is qualified in its entirety by reference to the terms of the Merger Agreement, which was filed as Exhibit 2.1 to the Current Report on Form 8-K filed by Nanometrics with the SEC on June 24, 2019 and is incorporated by reference into this Item 2.01.

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

As of the close of trading on October 25, 2019, Nanometrics, acting pursuant to authorization from its Board of Directors (the “Board”), voluntarily withdrew the listing of its common stock, par value $0.001 per share from the Nasdaq Global Select Market and transferred the listing to the New York Stock Exchange (the “NYSE”), where it has been authorized for listing. Onto Innovation (formerly Nanometrics) will commence trading on the NYSE today, October 28, 2019, under the new ticker symbol “ONTO”.

Item 3.03. Material Modification to Rights of Security Holders.

The information set forth under Item 2.01, Item 3.01, Item 5.03 and Item 9.01 of this Current Report on Form 8-K is incorporated by reference into this Item 3.03.

Item 5.01. Changes in Control of Registrant.

The information set forth under Item 2.01 and Item 5.03 of this Current Report on Form 8-K is incorporated by reference into this Item 5.01.

Consistent with the terms of the Merger Agreement, and effective as of the Effective Time, pursuant to an action taken by the Board on October 22, 2019, Jeffrey A. Aukerman, Leo Berlinghieri, Vita A. Cassese, David B. Miller, Michael P. Plisinski and John R. Whitten, each a Rudolph director prior to the Merger, were appointed to the Board to serve until the earliest of (i) Onto Innovation’s next annual meeting of stockholders, (ii) the due election and qualification of such director’s successor and (iii) such director’s death, resignation or removal. As of the Effective Time, the Board consists of the following twelve members: Jeffrey A. Aukerman, Leo Berlinghieri, Vita A. Cassese, David B. Miller, Michael P. Plisinski, John R. Whitten, Edward J. Brown Jr., Roberg G. Deuster, Bruce C. Rhine, Christopher A. Seams, Dr. Timothy J. Stultz and Christine A. Tsingos. Edward J. Brown Jr., Roberg G. Deuster, Bruce C. Rhine, Christopher A. Seams, Dr. Timothy J. Stultz and Christine A. Tsingos were directors of Nanometrics prior to the closing of the Merger.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Departure of Officers and Directors

In connection with the Merger, effective as of the Effective Time, Pierre-Yves Lesaicherre, Ph.D. departed from the Board. In addition, effective as of the Effective Time, Pierre-Yves Lesaicherre, Ph.D. departed from his position as President and Chief Executive Officer, Janet Taylor departed from her position as General Counsel and Secretary, and James Barnhart departed from his position as Senior Vice President, Operations, of Nanometrics.

Appointment of Officers

The Board appointed (i) Michael P. Plisinski as Chief Executive Officer; (ii) Steven R. Roth as Chief Financial Officer, Senior Vice President and Treasurer; and (iii) Robert A. Koch as Vice President, General Counsel and Secretary, effective as of the Effective Time, and each to serve until his successor is duly appointed or until his earlier resignation, death or removal from office.

  Michael P. Plisinski, age 49, Onto Innovation’s Chief Executive Officer, previously served as Rudolph’s chief executive officer, from 2015 until the Merger, where he was responsible for all aspects of Rudolph’s


  business. Prior to his role as chief executive officer of Rudolph, Mr. Plisinski was Rudolph’s executive vice president and chief operating officer, where he was responsible for all aspects of Rudolph’s operations, since October 2014. Prior to his role as executive vice president and chief operating officer, Mr. Plisinski served as vice president and general manager of Rudolph’s software business since February 2006 when Rudolph had merged with August Technology Corporation. From 2003 to 2006, Mr. Plisinski’s positions at August Technology Corporation included vice president of engineering and director of strategic marketing for review and analysis products. Prior to joining August Technology Corporation, Mike was founder and president of Counterpoint Solutions, a semiconductor optical review and metrology company, later acquired by August Technology Corporation. Mike has a B.S. in Computer Science from the University of Massachusetts and completed the Harvard Advanced Management Program in 2012.

  Steven R. Roth, age 59, Onto Innovation’s Chief Financial Officer, Senior Vice President, Finance and Administration and Treasurer, previously served as Rudolph’s chief financial officer and senior vice president, finance and administration, from September 1996 until the Merger, where he was responsible for all aspects of Rudolph’s financial, accounting and administration functions. From August 1991 until August 1996, Mr. Roth served as the director of corporate finance for Bell Communications Research, now called Ericsson, a research and development company serving the telecommunications industry. Mr. Roth is a CPA and holds a B.S. in Accounting from Villanova University.

  Robert A. Koch, age 58, Onto Innovation’s Vice President, General Counsel and Secretary, previously served as Rudolph’s general counsel and vice president, from 2003 until the Merger, where he was responsible for all aspects of Rudolph’s legal functions. Prior to joining Rudolph, Mr. Koch held various in-house counsel positions, last serving as director of legal affairs for Howmedica Osteonics Corp., an orthopedic implant subsidiary of Stryker Corporation. Mr. Koch holds a B.S. in Chemical Engineering and a M.S. in Biomedical Engineering, both from Rutgers University. He earned his J.D. from Rutgers School of Law - Newark in 1991 and is admitted to practice in New Jersey and New York.

For a summary of the material terms of the compensatory arrangements to which each of Messrs. Plisinski, Roth and Koch is a party, see the joint proxy statement/prospectus filed by Nanometrics on September 10, 2019, including the documents incorporated therein by reference.

Appointment of Directors

The information set forth in Item 5.01 of this Current Report on Form 8-K with respect to the appointment of directors to the Board in accordance with the Merger Agreement is incorporated by reference into this Item 5.02.

New Committee Members and Chairs

In addition, effective immediately following the Effective Time, Christopher A. Seams was appointed as the Chairman of the Board and the following directors were appointed to serve on the respective committees of the Board as follows:

  Audit Committee: Christine A. Tsingos (chair), Christopher A. Seams, Jeffrey A. Aukerman, John R. Whitten and Vita Cassese.

  Compensation Committee: Edward J. Brown (chair), Robert G. Deuster, David B. Miller, Jeffrey A. Aukerman and Leo Berlinghieri.

  Nominating and Governance Committee: Leo Berlinghieri (chair), Christopher A. Seams, Bruce C. Rhine, Christine A. Tsingos and David A. Miller.

New Director Relationships

There are no family relationships between Jeffrey A. Aukerman, Leo Berlinghieri, Vita A. Cassese, David B. Miller, Michael P. Plisinski and John R. Whitten, and any director or executive officer of Nanometrics, and none has a direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.


Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

On October 25, 2019, Nanometrics filed with the Secretary of State of the State of Delaware (a) Nanometrics’ Amended and Restated Certificate of Incorporation, and (b) shortly thereafter second Nanometrics’ Amended and Restated Certificate of Incorporation. Additionally, by action of the Board effective as of the Effective Time, on October 25, 2019, Onto Innovation’s Amended and Restated Bylaws were adopted. Copies of the Amended and Restated Certificate of Incorporation, second Amended and Restated Certificate of Incorporation and the Amended and Restated Bylaws are filed as Exhibits 3.1, 3.2 and 3.3, respectively, to this Current Report on Form 8-K, and are incorporated into this Item 5.03 by reference.

Nanometrics’ Amended and Restated Certificate of Incorporation increased the number of authorized shares of Nanometrics common stock from 47,000,000 shares of common stock to 97,000,000 shares of common stock, and added a provision providing that a director of Nanometrics will not be liable for monetary damages to Nanometrics or Nanometrics’ stockholders for a breach of fiduciary duties as a director, subject to any limitations under the Delaware General Corporation Law.

Nanometrics’ second Amended and Restated Certificate of Incorporation changed the name of the company from Nanometrics Incorporated to Onto Innovation Inc.

Onto Innovation’s new bylaws are described in the joint proxy statement/prospectus filed by Nanometrics on September 10, 2019.

Item 5.05. Amendments to the Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics.

Effective as of the Effective Time, pursuant to an action taken by the Board on October 22, 2019, Onto Innovation’s Code of Business Conduct and Ethics (the “Code”) and Financial Code of Ethics were adopted as set forth on Exhibits 14.1 and 14.2, respectively. The Code is applicable to all employees, executive officers and directors of Onto Innovation. The Financial Code of Ethics is applicable to the Chief Executive Officer and all Onto Innovation senior financial officers, including the Chief Financial Officer and Controller.

The Code amends and restates the Nanometrics Code of Business Conduct and Ethics to include provisions of the Rudolph Code of Ethics to ensure compliance with the NYSE standards for a code of ethics, given Onto Innovation’s new listing on the NYSE. The Financial Code of Ethics tracks the Rudolph Financial Code of Ethics and is designed to comply with the requirements of Item 406 of Regulation S-K of the SEC.

The description of the Code and Financial Code of Ethics contained in this report is qualified in its entirety by reference to the full text of the Code and Financial Code of Ethics filed as Exhibits 14.1 and 14.2, respectively, to this Current Report on Form 8-K.

Item 7.01. Regulation FD Disclosure.

On October 28, 2019, Onto Innovation issued a press release announcing the consummation of the Merger. A copy of the press release is being furnished herewith as Exhibit 99.1

This information is being furnished under Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall this information be deemed incorporated in any filings made by Onto Innovation under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 8.01. Other Events.

Principal Office

Effective as of the Effective Time, pursuant to an action taken by the Board on October 22, 2019, Onto Innovation’s principal office of business is 16 Jonspin Road, Wilmington, Massachusetts 01887.


New NYSE Ticker Symbol

Effective at the open of business on October 28, 2019, Onto Innovation’s common stock will begin trading on the NYSE under the new ticker symbol “ONTO.”

Item 9.01. Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired.

The financial statements of Rudolph required by this item will be filed by amendment to this Current Report on Form 8-K no later than 71 calendar days after the date this Current Report on Form 8-K is required to be filed.

(b) Pro Forma Financial Information.

The pro forma financial information required by this item will be filed by amendment to this Current Report on Form 8-K no later than 71 calendar days after the date this Current Report on Form 8-K is required to be filed.

(d) Exhibits.

         
 

  2.1

   

Agreement and Plan of Merger, dated as of June 23, 2019, by and among Nanometrics Incorporated, Rudolph Technologies, Inc. and PV Equipment Inc. (incorporated herein by reference to Exhibit 2.1 to Current Report on Form 8-K filed by Rudolph Technologies, Inc. with the SEC on June 24, 2019).*

         
 

  3.1

   

Amended and Restated Certificate of Incorporation of Nanometrics Incorporated, dated October 25, 2019.

         
 

  3.2

   

Amended and Restated Certificate of Incorporation of Nanometrics Incorporated, dated October 25, 2019 (to change name from Nanometrics Incorporated to Onto Innovation Inc.)

         
 

  3.3

   

Amended and Restated Bylaws of Onto Innovation, Inc., dated October 25, 2019.

         
 

14.1

   

Code of Business Conduct Ethics of Onto Innovation, Inc., dated October 25, 2019.

         
 

14.2

   

Financial Code of Ethics of Onto Innovation, Inc., dated October 25, 2019.

         
 

99.1

   

Press Release issued by Onto Innovation Inc., dated October 28, 2019

         
 

104

   

Cover Page Interactive Data File (embedded within the Inline XBRL document)

* All schedules (or similar attachments) have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. Onto Innovation will furnish copies of any schedules to the SEC upon request.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 28, 2019

 

 

ONTO INNOVATION INC.

             

 

 

By:

 

/s/ Michael P. Plisinski

 

 

 

Michael P. Plisinski

 

 

 

Chief Executive Officer

Exhibit 3.1

AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

OF NANOMETRICS INCORPORATED

Nanometrics Incorporated, a corporation organized and existing under the laws of the State of Delaware, hereby certifies as follows:

ONE: The original name of this corporation was MINOR LEAGUE MERGER CORPORATION and the date of filing the original Certificate of Incorporation of this corporation with the Secretary of State of the State of Delaware was January 18, 2005, as amended by a Certificate of Amendment filed with the Secretary of State of the State of Delaware on January 25, 2006. An Amended and Restated Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on September 29, 2006 (the “Restated Certificate”).

TWO: Pursuant to Sections 242 and 245 of the General Corporation Law of the State of Delaware, this Amended and Restated Certificate of Incorporation amends and restates the provisions of the Certificate of Incorporation of the corporation.

THREE: The text of the Restated Certificate is hereby amended and restated in its entirety to read as follows:

ARTICLE I

The name of the corporation is Nanometrics Incorporated.

ARTICLE II

The address of the corporation’s registered office in the State of Delaware is Corporation Trust Center, 1209 Orange Street, Wilmington, New Castle County, Delaware 19801. The name of its registered agent at such address is The Corporation Trust Company.

ARTICLE III

The purpose of the corporation is to engage in any lawful act or activity for which corporations may be organized under the DGCL.

ARTICLE IV

The corporation shall have authority to issue shares as follows:

97,000,000 shares of Common Stock, par value $0.001 per share. Each share of Common Stock shall entitle the holder thereof to one (1) vote on each matter submitted to a vote at a meeting of stockholders.

3,000,000 shares of Preferred Stock, par value $0.001 per share, which may be issued from time to time in one or more series pursuant to a resolution or resolutions providing for such issue duly adopted by the Board of Directors of the corporation (authority to do so being hereby expressly vested in the Board of Directors of the corporation). The Board of Directors of the corporation is further authorized, subject to limitations prescribed by law, to fix by resolution or resolutions the designations, powers, preferences and rights, and the qualifications, limitations or restrictions thereof, of any wholly unissued series of Preferred Stock, including without limitation authority to fix by resolution or resolutions the dividend rights, dividend rate, conversion rights, voting rights, rights and terms of redemption (including sinking fund provisions), redemption price or prices, and liquidation preferences of any such series, and the number of shares constituting any such series and the designation thereof, or any of the foregoing.

The Board of Directors of the corporation is further authorized to increase (but not above the total number of authorized shares of the class) or decrease (but not below the number of shares of any such series then outstanding) the number of shares of any series, the number of which was fixed by it, subsequent to the issuance of shares of such


series then outstanding, subject to the powers, preferences and rights, and the qualifications, limitations and restrictions thereof stated in this Certificate of Incorporation or the resolution of the Board of Directors of the corporation originally fixing the number of shares of such series. If the number of shares of any series is so decreased, then the shares constituting such decrease shall resume the status which they had prior to the adoption of the resolution originally fixing the number of shares of such series.

ARTICLE V

The number of directors that constitutes the entire Board of Directors of the corporation shall be determined in the manner set forth in the Bylaws of the corporation. At each annual meeting of stockholders, each director of the corporation shall be elected to hold office, and shall serve, until the expiration of the term for which he or she is elected and until his or her successor is duly elected and qualified or until his or her death, resignation, or removal; except that if any such election shall not be so held, such election shall take place at a stockholders’ meeting called and held in accordance with the DGCL.

Any director may be removed from office by the stockholders of the corporation. Vacancies occurring on the Board of Directors of the corporation for any reason and newly created directorships resulting from an increase in the authorized number of directors may be filled only by vote of a majority of the remaining members of the Board of Directors of the corporation, although less than a quorum, at any meeting of the Board of Directors of the corporation. A person so elected by the Board of Directors of the corporation to fill a vacancy or newly created directorship shall hold office until the next election of the class for which such director shall have been chosen and until his or her successor shall have been duly elected and qualified.

ARTICLE VI

In furtherance and not in limitation of the powers conferred by statute, the Board of Directors of the corporation is expressly authorized to adopt, amend or repeal the Bylaws of the corporation.

ARTICLE VII

The election of directors need not be by written ballot unless the Bylaws of the corporation shall so provide.

ARTICLE VIII

Special meetings of the stockholders of the corporation for any purpose or purposes may be called at any time by the chairperson of the Board of Directors of the corporation or a majority of the authorized number of directors, but such special meetings may not be called by any other person or persons. No action shall be taken by the stockholders of the corporation except at an annual or special meeting of the stockholders called in accordance with this Certificate of Incorporation or the Bylaws of the corporation, and no action shall be taken by the stockholders by written consent.

ARTICLE IX

The corporation shall indemnify and hold harmless, to the fullest extent permitted by the DGCL as it presently exists or may hereafter be amended, any director or officer of the corporation who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”) by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses reasonably incurred by such person in connection with any such Proceeding. The corporation shall be required to indemnify a person in connection with a Proceeding initiated by such person only if the Proceeding was authorized by the Board of Directors of the corporation.


The corporation shall have the power to indemnify and hold harmless, to the extent permitted by applicable law as it presently exists or may hereafter be amended, any employee or agent of the corporation who was or is made or is threatened to be made a party or is otherwise involved in any Proceeding by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was an employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses reasonably incurred by such person in connection with any such Proceeding.

Neither any amendment nor repeal of this Article IX, nor the adoption of any provision of this Certificate of Incorporation inconsistent with this Article IX, shall eliminate or reduce the effect of this Article IX in respect of any matter occurring, or any cause of action, suit or claim accruing or arising or that, but for this Article IX, would accrue or arise, prior to such amendment, repeal or adoption of an inconsistent provision.

ARTICLE X

Except as provided in Article IX above, the corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation.

ARTICLE XI

A director of the corporation shall not be liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists or may hereafter be amended. Any amendment, modification or repeal of the foregoing sentence shall not adversely affect any right or protection of a director of the corporation hereunder in respect of any act or omission occurring prior to the time of such amendment, modification or repeal.

*    *    *    *    *    *


IN WITNESS WHEREOF, this Amended and Restated Certificate of Incorporation has been executed by a duly authorized officer of this corporation on this 25th day of October, 2019.

 

NANOMETRICS INCORPORATED
By:  

/s/ Greg Swyt

Name:   Greg Swyt.
Title:   President and Chief Executive Officer

Exhibit 3.2

AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

OF NANOMETRICS INCORPORATED

Nanometrics Incorporated, a corporation organized and existing under the laws of the State of Delaware, hereby certifies as follows:

ONE: The original name of this corporation was MINOR LEAGUE MERGER CORPORATION and the date of filing the original Certificate of Incorporation of this corporation with the Secretary of State of the State of Delaware was January 18, 2005, as amended by a Certificate of Amendment filed with the Secretary of State of the State of Delaware on January 25, 2006. An Amended and Restated Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on September 29, 2006. An Amended and Restated Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on October 25, 2019 (the “Restated Certificate”).

TWO: Pursuant to Sections 242 and 245 of the General Corporation Law of the State of Delaware, this Amended and Restated Certificate of Incorporation amends and restates the provisions of the Certificate of Incorporation of the corporation.

THREE: Pursuant to Section 103(d) of the General Corporation Law of the State of Delaware, this Amended and Restated Certificate of Incorporation shall be effective as of 4:01 p.m. Eastern Standard Time on October 25, 2019.

FOUR: The text of the Restated Certificate is hereby amended and restated in its entirety to read as follows:

ARTICLE I

The name of the corporation is Onto Innovation Inc.

ARTICLE II

The address of the corporation’s registered office in the State of Delaware is Corporation Trust Center, 1209 Orange Street, Wilmington, New Castle County, Delaware 19801. The name of its registered agent at such address is The Corporation Trust Company.

ARTICLE III

The purpose of the corporation is to engage in any lawful act or activity for which corporations may be organized under the DGCL.

ARTICLE IV

The corporation shall have authority to issue shares as follows:

97,000,000 shares of Common Stock, par value $0.001 per share. Each share of Common Stock shall entitle the holder thereof to one (1) vote on each matter submitted to a vote at a meeting of stockholders.

3,000,000 shares of Preferred Stock, par value $0.001 per share, which may be issued from time to time in one or more series pursuant to a resolution or resolutions providing for such issue duly adopted by the Board of Directors of the corporation (authority to do so being hereby expressly vested in the Board of Directors of the corporation). The Board of Directors of the corporation is further authorized, subject to limitations prescribed by law, to fix by resolution or resolutions the designations, powers, preferences and rights, and the qualifications, limitations or restrictions thereof, of any wholly unissued series of Preferred Stock, including without limitation authority to fix by resolution or resolutions the dividend rights, dividend rate, conversion rights, voting rights, rights and terms of redemption (including sinking fund provisions), redemption price or prices, and liquidation preferences of any such series, and the number of shares constituting any such series and the designation thereof, or any of the foregoing.


The Board of Directors of the corporation is further authorized to increase (but not above the total number of authorized shares of the class) or decrease (but not below the number of shares of any such series then outstanding) the number of shares of any series, the number of which was fixed by it, subsequent to the issuance of shares of such series then outstanding, subject to the powers, preferences and rights, and the qualifications, limitations and restrictions thereof stated in this Certificate of Incorporation or the resolution of the Board of Directors of the corporation originally fixing the number of shares of such series. If the number of shares of any series is so decreased, then the shares constituting such decrease shall resume the status which they had prior to the adoption of the resolution originally fixing the number of shares of such series.

ARTICLE V

The number of directors that constitutes the entire Board of Directors of the corporation shall be determined in the manner set forth in the Bylaws of the corporation. At each annual meeting of stockholders, each director of the corporation shall be elected to hold office, and shall serve, until the expiration of the term for which he or she is elected and until his or her successor is duly elected and qualified or until his or her death, resignation, or removal; except that if any such election shall not be so held, such election shall take place at a stockholders’ meeting called and held in accordance with the DGCL.

Any director may be removed from office by the stockholders of the corporation. Vacancies occurring on the Board of Directors of the corporation for any reason and newly created directorships resulting from an increase in the authorized number of directors may be filled only by vote of a majority of the remaining members of the Board of Directors of the corporation, although less than a quorum, at any meeting of the Board of Directors of the corporation. A person so elected by the Board of Directors of the corporation to fill a vacancy or newly created directorship shall hold office until the next election of the class for which such director shall have been chosen and until his or her successor shall have been duly elected and qualified.

ARTICLE VI

In furtherance and not in limitation of the powers conferred by statute, the Board of Directors of the corporation is expressly authorized to adopt, amend or repeal the Bylaws of the corporation.

ARTICLE VII

The election of directors need not be by written ballot unless the Bylaws of the corporation shall so provide.

ARTICLE VIII

Special meetings of the stockholders of the corporation for any purpose or purposes may be called at any time by the chairperson of the Board of Directors of the corporation or a majority of the authorized number of directors, but such special meetings may not be called by any other person or persons. No action shall be taken by the stockholders of the corporation except at an annual or special meeting of the stockholders called in accordance with this Certificate of Incorporation or the Bylaws of the corporation, and no action shall be taken by the stockholders by written consent.

ARTICLE IX

The corporation shall indemnify and hold harmless, to the fullest extent permitted by the DGCL as it presently exists or may hereafter be amended, any director or officer of the corporation who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”) by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust,


enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses reasonably incurred by such person in connection with any such Proceeding. The corporation shall be required to indemnify a person in connection with a Proceeding initiated by such person only if the Proceeding was authorized by the Board of Directors of the corporation.

The corporation shall have the power to indemnify and hold harmless, to the extent permitted by applicable law as it presently exists or may hereafter be amended, any employee or agent of the corporation who was or is made or is threatened to be made a party or is otherwise involved in any Proceeding by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was an employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses reasonably incurred by such person in connection with any such Proceeding.

Neither any amendment nor repeal of this Article IX, nor the adoption of any provision of this Certificate of Incorporation inconsistent with this Article IX, shall eliminate or reduce the effect of this Article IX in respect of any matter occurring, or any cause of action, suit or claim accruing or arising or that, but for this Article IX, would accrue or arise, prior to such amendment, repeal or adoption of an inconsistent provision.

ARTICLE X

Except as provided in Article IX above, the corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation.

ARTICLE XI

A director of the corporation shall not be liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists or may hereafter be amended. Any amendment, modification or repeal of the foregoing sentence shall not adversely affect any right or protection of a director of the corporation hereunder in respect of any act or omission occurring prior to the time of such amendment, modification or repeal.

*    *    *    *    *    *


IN WITNESS WHEREOF, this Amended and Restated Certificate of Incorporation has been executed by a duly authorized officer of this corporation on this 25th day of October, 2019.

 

NANOMETRICS INCORPORATED
By:  

/s/ Greg Swyt

Name:   Greg Swyt
Title:   Vice President, Finance and Principal Financial and Accounting Officer

Exhibit 3.3

AMENDED AND RESTATED BYLAWS

OF

ONTO INNOVATION INC.


TABLE OF CONTENTS

 

       Page  

ARTICLE I. CORPORATE OFFICES

     1  

1.1.

  REGISTERED OFFICE      1  

1.2.

  OTHER OFFICES      1  

ARTICLE II. MEETINGS OF STOCKHOLDERS

     1  

2.1.

  PLACE OF MEETINGS      1  

2.2.

  ANNUAL MEETING      1  

2.3.

  SPECIAL MEETING      1  

2.4.

  NOTICE OF STOCKHOLDERS’ MEETINGS      2  

2.5.

  ADVANCE NOTICE OF STOCKHOLDER NOMINEES AND STOCKHOLDER BUSINESS      2  

2.6.

  MANNER OF GIVING NOTICE; AFFIDAVIT OF NOTICE      7  

2.7.

  QUORUM      7  

2.8.

  ADJOURNED MEETING; NOTICE      7  

2.9.

  CONDUCT OF BUSINESS      8  

2.10.

  VOTING      8  

2.11.

  WAIVER OF NOTICE      9  

2.12.

  RECORD DATE FOR STOCKHOLDER NOTICE; VOTING      9  

2.13.

  PROXIES      10  

2.14.

  LIST OF STOCKHOLDERS ENTITLED TO VOTE      10  

2.15.

  INSPECTORS OF ELECTIONS      11  

ARTICLE III. DIRECTORS

     11  

3.1.

  POWERS      11  

3.2.

  NUMBER OF DIRECTORS      11  

3.3.

  ELECTION, QUALIFICATION AND TERM OF OFFICE OF DIRECTORS      12  

3.4.

  RESIGNATION AND VACANCIES      12  

3.5.

  PLACE OF MEETINGS; MEETINGS BY TELEPHONE      12  

3.6.

  REGULAR MEETINGS      13  

3.7.

  SPECIAL MEETINGS; NOTICE      13  

3.8.

  QUORUM; VOTING      13  

3.9.

  WAIVER OF NOTICE      14  

3.10.

  ACTION BY UNANIMOUS CONSENT OF DIRECTORS      14  

3.11.

  FEES AND COMPENSATION OF DIRECTORS      14  

3.12.

  REMOVAL OF DIRECTORS      14  

ARTICLE IV. COMMITTEES

     14  

4.1.

  COMMITTEES OF DIRECTORS      14  

4.2.

  COMMITTEE MINUTES      15  

4.3.

  MEETINGS AND ACTION OF COMMITTEES      15  

 

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ARTICLE V. OFFICERS

     15  

5.1.

  OFFICERS      15  

5.2.

  APPOINTMENT OF OFFICERS      16  

5.3.

  SUBORDINATE OFFICERS      16  

5.4.

  REMOVAL AND RESIGNATION OF OFFICERS; FILLING VACANCIES      16  

5.5.

  REPRESENTATION OF SHARES OF OTHER CORPORATIONS      16  

5.6.

  AUTHORITY AND DUTIES OF OFFICERS      17  

ARTICLE VI. INDEMNITY

     17  

6.1.

  INDEMNIFICATION OF DIRECTORS AND OFFICERS      17  

6.2.

  INDEMNIFICATION OF OTHERS      17  

6.3.

  SUCCESSFUL DEFENSE      17  

6.4.

  PAYMENT OF EXPENSES IN ADVANCE      18  

6.5.

  CLAIMS      18  

6.6.

  INDEMNITY NOT EXCLUSIVE      18  

6.7.

  INSURANCE      18  

6.8.

  OTHER SOURCES      18  

6.9.

  THE CORPORATION      19  

6.10.

  EMPLOYEE BENEFIT PLANS      19  

6.11.

  CONTINUATION OF INDEMNIFICATION AND ADVANCEMENT OF EXPENSES      19  

ARTICLE VII. GENERAL MATTERS

     19  

7.1.

  CHECKS      19  

7.2.

  EXECUTION OF CORPORATE CONTRACTS AND INSTRUMENTS      20  

7.3.

  STOCK CERTIFICATES; PARTLY PAID SHARES      20  

7.4.

  SPECIAL DESIGNATION ON CERTIFICATES      20  

7.5.

  LOST CERTIFICATES      21  

7.6.

  CONSTRUCTION; DEFINITIONS      21  

7.7.

  DIVIDENDS      21  

7.8.

  FISCAL YEAR      21  

7.9.

  SEAL      22  

7.10.

  TRANSFER OF STOCK      22  

7.11.

  STOCK TRANSFER AGREEMENTS      22  

7.12.

  REGISTERED STOCKHOLDERS      22  

7.13.

  EXCLUSIVE FORUM      22  

ARTICLE VIII. AMENDMENTS

     23  

 

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ARTICLE I.

CORPORATE OFFICES

1.1. REGISTERED OFFICE

The address of the corporation’s registered office of the corporation shall be fixed in the corporation’s certificate of incorporation, as the same may be amended from time to time.

1.2. OTHER OFFICES

The corporation’s board of directors (the “board of directors”) may at any time establish other offices at any place or places where the corporation is qualified to do business.

ARTICLE II.

MEETINGS OF STOCKHOLDERS

2.1. PLACE OF MEETINGS

Meetings of stockholders shall be held at a place, if any, either within or without the State of Delaware, as may be designated by the board of directors from time to time or in the manner provided in these bylaws. In the absence of any such designation or determination, stockholders’ meetings shall be held at the corporation’s principal executive office.

2.2. ANNUAL MEETING

If required by applicable law, an annual meeting of the stockholders shall be held each year for the purpose of electing directors and conducting such other proper business as may properly come before the meeting. The date, time and place, if any, of the annual meeting shall be determined by the board of directors. The corporation may postpone, reschedule or cancel any annual meeting of stockholders previously scheduled by the board of directors.

2.3. SPECIAL MEETING

A special meeting of the stockholders may be called as provided in the certificate of incorporation.

No business may be transacted at such special meeting otherwise than specified in the notice of such meeting provided pursuant to Section 2.4 of these bylaws. The corporation may postpone, reschedule or cancel any special meeting of stockholders previously scheduled by the board of directors.

 

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2.4. NOTICE OF STOCKHOLDERS’ MEETINGS

Whenever stockholders are required or permitted to take any action at a meeting, a notice of the meeting shall be given that shall state the place, if any, date and time of the meeting, the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, the record date for determining the stockholders entitled to vote at the meeting (if such date is different from the record date for stockholders entitled to notice of the meeting) and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Unless otherwise provided by law, the certificate of incorporation or these bylaws, the notice of any meeting shall be given not less than ten (10) nor more than sixty (60) days before the date of the meeting to each stockholder entitled to vote at such meeting as of the record date for determining the stockholders entitled to notice of the meeting.

2.5. ADVANCE NOTICE OF STOCKHOLDER NOMINEES AND STOCKHOLDER BUSINESS

(i) Advance Notice of Stockholder Nominations

Nominations of persons for election to the board of directors of the corporation may be made at an annual meeting of stockholders only (1) pursuant to the corporation’s notice of meeting (or any supplement thereto), (2) by or at the direction of the board of directors or any duly authorized committee thereof or (3) by any stockholder of the corporation entitled to vote in the election of directors at the meeting who was a stockholder of record at the time the notice provided for in this Section 2.5 is delivered to the secretary of the corporation and who complies with the notice procedures set forth in this Section 2.5. For any nomination to be properly brought before an annual meeting by any stockholder pursuant to clause (3) of this Section 2.5(i), such nomination shall be made pursuant to timely notice in writing to the secretary of the corporation. To be timely, a stockholder’s notice shall be delivered to, or mailed and received by, the secretary of the corporation at the principal executive offices of the corporation not later than the close of business on the 90th day, nor earlier than the close of business on the 120th day, prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is more than 30 days before or more than 70 days after such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the 120th day prior to such annual meeting and not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made by the corporation. Such stockholder’s notice shall set forth (a) as to each person, if any, whom the stockholder proposes to nominate for election or re-election as a director: (i) the name, age, business address and residence address of such person, (ii) the principal occupation or employment of such person, (iii) the class and number of shares of the corporation which owned beneficially and of record by such person, (iv) any other information relating to such person that is required by law to be disclosed in solicitations of proxies for election of directors in an election contest, or is otherwise required, in each case pursuant to and in accordance with Section 14(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated thereunder, and (v) such person’s

 

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written consent to being named in the corporation’s proxy statement and associated proxy card as a nominee of the stockholder and to serving as a director if elected; and (b) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination is made: (i) the name and address, as they appear on the corporation’s books, of such stockholder, and of such beneficial owner, (ii) the class or series and number of shares of capital stock of the corporation which are owned beneficially and of record by such stockholder and such beneficial owner, (iii) a representation that the stockholder is a holder of record of stock of the corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to propose such nomination, (iv) a representation whether the stockholder or the beneficial owner, if any, intends or is part of a group that intends (x) to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the corporation’s outstanding capital stock required to elect the nominee and/or (y) otherwise solicit proxies from stockholders in support of such nomination, (v) a description of all agreements, arrangements or understandings between or among such stockholder and/or beneficial owner, any of their respective affiliates or associates, and any others acting in concert with any of the foregoing, including each nominee, and any other person or persons (naming such person or persons) relating to the nomination, (vi) a description of any agreement, arrangement or understanding (including any derivative or short positions, profit interests, options, warrants, convertible securities, stock appreciation or similar rights, hedging transactions, and borrowed or loaned shares) that has been entered into as of the date of the stockholder’s notice by, or on behalf of, such stockholder and such beneficial owners, whether or not such instrument or right shall be subject to settlement in underlying shares of capital stock of the corporation, the effect or intent of which is to mitigate loss to, manage risk or benefit of share price changes for, or increase or decrease the voting power of, such stockholder or such beneficial owner, with respect to securities of the corporation and (vii) any other information relating to such stockholder and beneficial owner, if any, required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for the election of directors in an election contest pursuant to and in accordance with Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder. The corporation may require any proposed nominee to furnish such other information as the corporation may reasonably require to determine the eligibility of such proposed nominee to serve as a director of the corporation or that could be material to a reasonable stockholder’s understanding of the independence, or lack thereof, of such proposed nominee.

(ii) Advance Notice of Stockholders Business

At the annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, business must be proposed only: (a) pursuant to the corporation’s notice of meeting (or any supplement thereto), (b) by or at the direction of the board of directors or any duly authorized committee thereof, or (c) by any stockholder of the corporation entitled to vote at the meeting who was a stockholder of record at the time the notice provided for in this Section 2.5 is delivered to the secretary of the corporation and who complies with the notice procedures set forth in this Section 2.5. Business to be brought before the meeting by a stockholder shall be considered properly brought only if the stockholder has given timely notice thereof in writing to the secretary

 

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of the corporation in accordance with this Section 2.5 and such proposed business constitutes a proper matter for stockholder action. To be timely, a stockholder’s notice must be delivered to the principal executive offices of the corporation not later than the close of business on the 90th day, nor earlier than the close of business on the 120th day, prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is more than 30 days before or more than 70 days after such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the 120th day prior to such annual meeting and not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made by the corporation. A stockholder’s notice to the secretary shall set forth as to each matter the stockholder proposes to bring before the annual meeting: (i) a brief description of the business desired to be brought before the annual meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration and, in the event that such business includes a proposal to amend the bylaws of the corporation, the language of the proposed amendment), the reasons for conducting such business at the annual meeting and any material interest in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made, (ii) the name and address of the stockholder proposing such business and the beneficial owner, if any, on whose behalf the proposal is made, (iii) the class or series and number of shares of the corporation, which are owned beneficially or of record by the stockholder and beneficial owner, (iv) a representation that the stockholder is a holder of record of stock of the corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to propose such business, (v) a representation whether the stockholder or the beneficial owner, if any, intends or is part of a group that intends (x) to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the corporation’s outstanding capital stock required to adopt the proposal and/or (y) otherwise solicit proxies from stockholders in support of such proposal, (vi) any material interest of the stockholder or beneficial owner in such business, (vii) a description of any agreement, arrangement or understanding with respect to the proposal between or among such stockholder and/or such beneficial owner, any of their respective affiliates or associates, and any others acting in concert with any of the foregoing, (viii) a description of any agreement, arrangement or understanding (including any derivative or short positions, profit interests, options, warrants, convertible securities, stock appreciation or similar rights, hedging transactions, and borrowed or loaned shares) that has been entered into as of the date of the stockholder’s notice by, or on behalf of, such stockholder and such beneficial owners, whether or not such instrument or right shall be subject to settlement in underlying shares of capital stock of the corporation, the effect or intent of which is to mitigate loss to, manage risk or benefit of share price changes for, or increase or decrease the voting power of, such stockholder or such beneficial owner, with respect to securities of the corporation and (vii) any other information relating to such stockholder and beneficial owner, if any, that is required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for the proposal pursuant to and in accordance with Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder. The foregoing notice requirements of this Section 2.5(ii) shall be deemed satisfied by a stockholder with respect to any business for which the stockholder has notified the corporation of his, her or its intention to present a proposal at an annual meeting in compliance with applicable rules and regulations promulgated under the Exchange Act and such stockholder’s proposal has been included in a proxy statement that has been prepared by the corporation to solicit proxies for such annual meeting.

 

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(iii) Special Meetings of Stockholders.

Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the corporation’s notice of meeting. Nominations of persons for election to the board of directors may be made at a special meeting of stockholders at which directors are to be elected pursuant to the corporation’s notice of meeting (a) by or at the direction of the board of directors or any committee thereof or (b) provided that the board of directors has determined that directors shall be elected at such meeting, by any stockholder of the corporation who is a stockholder of record at the time of notice provided for in this Section 2.5 is delivered to the secretary of the corporation, who is entitled to vote at the meeting and upon such election and who complies with the notice procedures set forth in this Section 2.5. In the event the corporation calls a special meeting of stockholders for the purpose of electing one or more directors to the board of directors, any such stockholder entitled to vote in such election of directors may nominate a person or persons (as the case may be) for election to such position(s) as specified in the corporation’s notice of meeting, if the stockholder’s notice required by this Section 2.5 (which shall include all of the information, agreements and representations required by Section 2.5(i) as if such stockholder was nominating such person or persons for election at an annual meeting) shall be delivered to the secretary at the principal executive offices of the corporation not earlier than the close of business on the 120th day prior to such special meeting and not later than the close of business on the later of the 90th day prior to such special meeting or the 10th day following the day on which public announcement is first made of the date of the special meeting at which directors are to be elected. In no event shall the public announcement of an adjournment or postponement of a special meeting commence a new time period (or extend any time period) for the giving of a stockholder’s notice as described above.

(iv) General

No person shall be eligible for election as a director of the corporation unless nominated in accordance with the procedures set forth in this Section 2.5, and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Section 2.5. The chairman of the meeting shall have the power and duty to determine and declare whether a nomination was properly made or business was properly brought before the meeting, in accordance with the procedures prescribed by these bylaws, and if he should so determine, he shall so declare at the meeting and the defective nomination or any such business not properly brought before the meeting shall be disregarded. Notwithstanding the foregoing provisions of this Section 2.5, unless otherwise required by law, if the stockholder (or a qualified representative of the stockholder) does not appear at the annual or special meeting of stockholders of the corporation to present a nomination or proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the corporation. For purposes of this Section 2.5, to be considered a qualified representative of the

 

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stockholder, a person must be a duly authorized officer, manager or partner of such stockholder or must be authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of stockholders.

For purposes of this Section 2.5, “public announcement” shall include disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act and the rules and regulations promulgated thereunder. In no event shall the public announcement of an adjournment or postponement of an annual meeting commence a new time period (or extend any time period) for the giving of any stockholder’s notice as described above.

Notwithstanding the foregoing provisions of this Section 2.5, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 2.5; provided however, that any references in these bylaws to the Exchange Act or the rules and regulations promulgated thereunder are not intended to and shall not limit any requirements applicable to nominations or proposals as to any other business to be considered pursuant to this Section 2.5 (including paragraphs (i)(3), (ii)(c) and (iii) hereof), and compliance with paragraphs (i)(3), (ii)(c) and (iii) of this Section 2.5 shall be the exclusive means for a stockholder to make nominations or submit other business (other than, as provided in the last sentence of Section 2.5(ii), business other than nominations brought properly under and in compliance with Rule 14a-8 of the Exchange Act, as may be amended from time to time). Nothing in this Section 2.5 shall be deemed to affect any rights (a) of stockholders to request inclusion of proposals or nominations in the corporation’s proxy statement pursuant to applicable rules or regulations promulgated under the Exchange Act or (b) of the holders of any series of preferred stock to elect directors pursuant to any applicable provisions of the certificate of incorporation.

Notwithstanding anything in Section 2.5(i) to the contrary, in the event that the number of directors to be elected to the board of directors at the annual meeting is increased effective after the time period for which stockholder nominations would otherwise be due under Section 2.5(i) and there is no public announcement by the corporation naming the nominees for the additional directorships at least 100 days prior to the first anniversary of the preceding year’s annual meeting, a stockholder’s notice required by Section 2.5(i) shall also be considered timely, but only with respect to nominees for the additional directorships, if it shall be delivered to the secretary of the corporation at the principal executive offices of the corporation not later than the close of business on the 10th day following the day on which such public announcement is first made by the corporation.

 

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2.6. MANNER OF GIVING NOTICE; AFFIDAVIT OF NOTICE

Notice of any meeting of stockholders, if mailed, shall be deemed to be given when deposited in the United States mail, postage prepaid, directed to the stockholder at his address as it appears on the records of the corporation. An affidavit of the secretary or an assistant secretary or of the transfer agent of the corporation that the notice has been given shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

Without limiting the foregoing, any notice to stockholders given by the corporation shall be effective if given by a form of electronic transmission permitted by applicable law. For purposes of these bylaws, “electronic transmission” means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

Without limiting the foregoing, any notice to stockholders given by the corporation may be given by a single written notice to stockholders who share an address if consented to by the stockholders at such address to whom such notice is given. Any such consent shall be revocable by the stockholders by written notice to the corporation. Any stockholder who fails to object in writing to the corporation, within 60 days of having been given written notice by the corporation of its intention to send the single notice as set forth in this Section 2.6 shall be deemed to have consented to receiving such single written notice.

2.7. QUORUM

The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders for the transaction of business except as otherwise provided by statute or by the certificate of incorporation. If, however, such quorum is not present or represented at any meeting of the stockholders, then either (i) the chairman of the meeting or (ii) the holders of a majority in voting power of the stock entitled to vote thereat, present in person or represented by proxy, shall have power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present or represented. At such adjourned meeting at which a quorum is present or represented, any business may be transacted that might have been transacted at the meeting as originally noticed.

2.8. ADJOURNED MEETING; NOTICE

When a meeting is adjourned to another time or place, unless these bylaws otherwise require, notice need not be given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting the corporation may transact any business that might have been transacted at the original meeting. If the adjournment is for more than thirty (30) days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. If after the adjournment a new record date for determination of stockholders entitled to vote is fixed for the adjourned meeting, the board

 

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of directors shall fix as the record date for determining stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote at the adjourned meeting, and a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting as of the record date so fixed for notice of the adjourned meeting.

2.9. CONDUCT OF BUSINESS

Meetings of stockholders shall be presided over by the chairman of the board of directors, if any, or in his or her absence by a person designated by the board of directors, or in the absence of a person so designated by the board of directors, by a chairman chosen at the meeting by the holders of a majority in voting power of the stock entitled to vote thereat, present in person or represented by proxy. The secretary, or in his or her absence, an assistant secretary, or in the absence of the secretary and all assistant secretaries, a person whom the chairman of the meeting shall appoint, shall act as secretary of the meeting and keep a record of the proceedings thereof.

The board of directors shall be entitled to make such rules or regulations for the conduct of meetings of stockholders as it shall deem necessary, appropriate or convenient. Subject to such rules and regulations of the board of directors, if any, the chairman of the meeting shall have the right and authority to convene and to recess and/or adjourn the meeting, to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of such chairman, are necessary, appropriate or convenient for the proper conduct of the meeting, including, without limitation, establishing an agenda or order of business for the meeting, rules and procedures for maintaining order at the meeting and the safety of those present, limitations on participation in the meeting to stockholders of record of the corporation, their duly authorized and constituted proxies and such other persons as the chairman shall permit, restrictions on entry to the meeting after the time fixed for the commencement thereof and limitations on the time allotted to questions or comments by participants. The chairman of the meeting, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall, if the facts warrant, determine and declare to the meeting that a matter or business was not properly brought before the meeting and if the chairman should so determine, he or she shall so declare to the meeting and any such matter or business not properly brought before the meeting shall not be transacted or considered. Unless and to the extent determined by the board of directors or the chairman of the meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

2.10. VOTING

The stockholders entitled to vote at any meeting of stockholders shall be determined in accordance with the provisions of Section 2.12 of these bylaws, subject to the provisions of Sections 217 and 218 of the Delaware General Corporation Law (relating to voting rights of fiduciaries, pledgors and joint owners of stock and to voting trusts and other voting agreements).

Except as may be otherwise provided in the certificate of incorporation, each stockholder shall be entitled to one vote for each share of capital stock held by such stockholder.

 

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Except as otherwise required by law or by the certificate of incorporation, each director shall be elected by the vote of the majority of the votes cast with respect to the director at any meeting for the election of directors at which a quorum is present; provided, however, that if, as of the tenth (10th) day preceding the date the corporation first mails its notice of meeting for such meeting to the stockholders of the corporation, the number of nominees exceeds the number of directors to be elected, the directors shall be elected by the vote of a plurality of the votes cast. For purposes of this bylaw, “a majority of the votes cast” shall mean that the number of shares cast “for” a director’s election exceeds the number of votes cast “against” that director’s election (with “abstentions” and “broker non-votes” not counted as a vote cast either “for” or “against” that director’s election).

All other elections and questions presented to the stockholders at a meeting at which a quorum is present shall, unless otherwise provided by the certificate of incorporation, these bylaws, the rules or regulations of any stock exchange applicable to the corporation, applicable law or pursuant to any regulation applicable to the corporation or its securities, be decided by the affirmative vote of the holders of a majority in voting power of the shares of stock of the corporation which are present in person or represented by proxy and entitled to vote thereon.

2.11. WAIVER OF NOTICE

Whenever notice is required to be given under any provision of the Delaware General Corporation Law or of the certificate of incorporation or these bylaws, a waiver, given by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the certificate of incorporation or these bylaws.

2.12. RECORD DATE FOR STOCKHOLDER NOTICE; VOTING

In order that the corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the board of directors may fix, in advance, a record date which (i) in the case of determination of stockholders entitled to notice of any meeting of stockholders or adjournment thereof, shall, unless otherwise required by law, not be more than sixty (60) nor less than ten (10) days before the date of such meeting (which date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the board of directors determines, at the time it fixes such record date for determining the stockholders entitled to notice of the meeting, that a later date on or before the date of the meeting shall be the date for making such determination), and (ii) in the case of any

 

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other lawful action, shall not be more than sixty (60) days prior to such other action. If no record date is fixed: (1) the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held and (2) the record date for determining stockholders for any other purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the board of directors may fix a new record date for determination of the stockholders entitled to vote at the adjourned meeting, and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote in accordance herewith at the adjourned meeting.

2.13. PROXIES

Each stockholder entitled to vote at a meeting of stockholders may authorize another person or persons to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after three (3) years from its date, unless the proxy provides for a longer period. A proxy shall be irrevocable if it satisfies the requirements to qualify as irrevocable under the Delaware General Corporation Law. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by delivering to the secretary of the corporation a revocation of the proxy or a new proxy bearing a later date.

2.14. LIST OF STOCKHOLDERS ENTITLED TO VOTE

The officer who has charge of the stock ledger of a corporation shall prepare and make, at least ten (10) days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting (provided, however, if the record date for determining the stockholders entitled to vote is less than ten (10) days before the date of the meeting, the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date), arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten (10) days prior to the meeting, (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of meeting or (ii) during ordinary business hours at the principal place of business of the corporation. The list of stockholders must also be open to examination at the meeting as required by applicable law. Except as otherwise provided by law, the stock ledger shall be the only evidence as to who are the stockholders entitled to examine the list of stockholders required by this Section 2.14 or to vote in person or by proxy at any meeting of stockholders.

 

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2.15. INSPECTORS OF ELECTIONS

The corporation may, and shall if required by law, in advance of any meeting of stockholders, appoint one or three inspectors of election, who may be employees of the corporation, to act at the meeting or any adjournment thereof and to make a written report thereof. The corporation may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If there are three (3) inspectors of election, the decision, act or certificate of a majority is effective in all respects as the decision, act or certificate of all. In the event that no inspector so appointed or designated is able to act at a meeting of stockholders, the person presiding at the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before entering upon the discharge of his or her duties, shall take and sign an oath to execute faithfully the duties of inspector with strict impartiality and according to the best of his or her ability. The inspector or inspectors so appointed or designated shall (i) ascertain the number of shares of capital stock of the corporation outstanding and the voting power of each such share, (ii) determine the shares of capital stock of the corporation represented at the meeting and the validity of proxies and ballots, (iii) count all votes and ballots, (iv) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors (v) certify their determination of the number of shares of capital stock of the corporation represented at the meeting and such inspectors’ count of all votes and ballots and (vi) do any other acts that may be proper to conduct the election or vote with fairness to all stockholders. Such certification and report shall specify such other information as may be required by law. In determining the validity and counting of proxies and ballots cast at any meeting of stockholders of the corporation, the inspectors may consider such information as is permitted by applicable law. No person who is a candidate for an office at an election may serve as an inspector at such election. Any report or certificate made by the inspectors of election is prima facie evidence of the facts stated therein.

ARTICLE III.

DIRECTORS

3.1. POWERS

Subject to the provisions of the Delaware General Corporation Law and any limitations in the certificate of incorporation, the business and affairs of the corporation shall be managed and all corporate powers shall be exercised by or under the direction of the board of directors.

3.2. NUMBER OF DIRECTORS

The board of directors shall consist of 12 members. No reduction of the authorized number of directors shall have the effect of removing any director before that director’s term of office expires. This Section 3.2 of the bylaws shall not be amended or repealed (including by the adoption of additional bylaw provisions in other Sections) by the board of directors except by the affirmative vote of 66 2/3% of the members then serving on the board of directors.

 

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3.3. ELECTION, QUALIFICATION AND TERM OF OFFICE OF DIRECTORS

A director shall hold office until the next annual meeting and until his successor shall be elected and shall qualify, or until to such director’s earlier death, resignation, disqualification or removal from office. Directors need not be stockholders unless so required by the certificate of incorporation or these bylaws, wherein other qualifications for directors may be prescribed. Elections of directors need not be by written ballot.

3.4. RESIGNATION AND VACANCIES

(a) Any director may resign at any time upon notice in writing or by electronic transmission to the corporation. Such resignation shall take effect at the time specified in such notice or, if the time be not specified, upon receipt thereof by the corporation. Unless otherwise specified therein, acceptance of such resignation shall not be necessary to make it effective. When one or more directors shall resign from the board of directors, effective at a future date, a majority of the directors then in office, including those who have so resigned, shall have power to fill such vacancy or vacancies in accordance with this Section 3.4, the vote thereon to take effect when such resignation or resignations shall become effective, and each director so chosen shall hold office as provided in this section in the filling of other vacancies.

(b) Unless otherwise provided in the certificate of incorporation or these bylaws:

(i) Vacancies and newly created directorships resulting from an increase in the authorized number of directors elected by all stockholders having the right to vote as a single class shall be filled by a majority of the directors then in office, even if less than a quorum, or by a sole remaining director;

(ii) Whenever the holders of any class or series of stock are entitled to elect one or more directors by the provisions of the certificate of incorporation or these bylaws, vacancies and newly created directorships of such class or series shall be filled only by a majority of the directors elected by such class or series then in office, or by a sole remaining director so elected.

Any director elected pursuant to this Section 3.4 shall hold office for a term expiring at the next annual meeting of stockholders and until such director’s successor shall have been duly elected and qualified, or until such director’s earlier death, disqualification, resignation or removal.

3.5. PLACE OF MEETINGS; MEETINGS BY TELEPHONE

The board of directors of the corporation may hold meetings, both regular and special, either within or outside the State of Delaware.

Unless otherwise restricted by the certificate of incorporation or these bylaws, members of the board of directors, or any committee designated by the board of directors, may participate in a meeting of such board of directors, or committee by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting pursuant to this section shall constitute presence in person at the meeting.

 

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3.6. REGULAR MEETINGS

Regular meetings of the board of directors may be held without notice at such time and at such place as shall from time to time be determined by the board.

3.7. SPECIAL MEETINGS; NOTICE

Special meetings of the board of directors for any purpose or purposes may be called at any time by the chairman of the board, the president, any vice president, the secretary or any two (2) directors.

Notice of the time and place of special meetings shall be delivered to each director personally, by telephone, by first-class mail addressed to each director at that director’s address as it is shown on the records of the corporation or by other means of electronic transmission. If the notice is mailed, it shall be deposited in the United States mail at least three (3) days before the time of the holding of the meeting. If the notice is delivered personally, by telephone or by other means of electronic transmission, it shall be delivered personally, by telephone or by such means of electronic transmission at least twenty-four (24) hours before the time of the holding of the meeting. Any oral notice given personally or by telephone may be communicated either to the director or to a person at the office of the director who the person giving the notice has reason to believe will promptly communicate it to the director. The notice need not specify the purpose or the place of the meeting, if the meeting is to be held at the principal executive office of the corporation.

3.8. QUORUM; VOTING

At all meetings of the board of directors, a majority of the authorized number of directors shall constitute a quorum for the transaction of business and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the board of directors, except as may be otherwise specifically provided by statute, the certificate of incorporation, or these bylaws. If a quorum is not present at any meeting of the board of directors, then the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present. Except in cases in which the certificate of incorporation, these bylaws or applicable law otherwise provides, every act or decision done or made by a majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors.

 

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3.9. WAIVER OF NOTICE

Whenever notice is required to be given under any provision of the Delaware General Corporation Law, the certificate of incorporation, or these bylaws, a written waiver signed by the person entitled to notice, or a waiver by electronic transmission given by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when such person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the directors, or members of a committee of directors, need be specified in any written waiver of notice unless so required by the certificate of incorporation or these bylaws.

3.10. ACTION BY UNANIMOUS CONSENT OF DIRECTORS

Unless otherwise restricted by the certificate of incorporation or these bylaws, any action required or permitted to be taken at any meeting of the board of directors or of any committee thereof may be taken without a meeting, if all the members of the board of directors or committee, as the case may be, consent thereto in writing or by electronic transmission.

3.11. FEES AND COMPENSATION OF DIRECTORS

Unless otherwise restricted by the certificate of incorporation or these bylaws, the board of directors shall have the authority to fix the compensation of directors.

3.12. REMOVAL OF DIRECTORS

Except for such additional directors, if any, as are elected by the holders of any series of preferred stock as provided for or fixed pursuant to the certificate of incorporation, any director, or the entire board of directors, may be removed from office at any time, but only by the affirmative vote of the holders of at least 66 2/3% of the total voting power of the outstanding shares of capital stock of the corporation entitled to vote generally in the election of directors, voting together as a single class.

ARTICLE IV.

COMMITTEES

4.1. COMMITTEES OF DIRECTORS

The board of directors may designate one or more committees, with each committee to consist of one or more of the directors of the corporation. The board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the board of directors to act at the meeting in the place of any such absent or

 

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disqualified member. Any such committee, to the extent provided in the resolution of the board of directors, or in the bylaws of the corporation, shall have and may exercise all the powers and authority of the board of directors in the management of the business and affairs of the corporation, and may authorize the seal of the corporation to be affixed to all papers that may require it; but no such committee shall have the power or authority (i) approving or adopting or recommending to the stockholders, any action or matter expressly required by the Delaware General Corporation Law to be submitted to stockholders for approval or (ii) adopting, amending, or repealing any bylaws of the corporation and, unless the board resolution establishing the committee, the bylaws or the certificate of incorporation expressly so provide, no such committee shall have the power or authority to declare a dividend, to authorize the issuance of stock, or to adopt a certificate of ownership and merger pursuant to Section 253 of the Delaware General Corporation Law.

4.2. COMMITTEE MINUTES

Each committee shall keep regular minutes of its meetings and report the same to the board of directors when required.

4.3. MEETINGS AND ACTION OF COMMITTEES

Meetings and actions of committees shall be governed by, and held and taken in accordance with, the provisions of Article III of these bylaws, Section 3.5 (place of meetings and meetings by telephone), Section 3.6 (regular meetings), Section 3.7 (special meetings and notice), Section 3.8 (quorum and voting), Section 3.9 (waiver of notice), and Section 3.10 (action without a meeting), with such changes in the context of those bylaws as are necessary to substitute the committee and its members for the board of directors and its members to the extent that such provisions do not already govern the conduct of committees; provided, however, that the time of regular meetings of committees may be determined either by resolution of the board of directors or by resolution of the committee and that special meetings of committees may also be called by resolution of the board of directors. The board of directors may adopt rules for the government of any committee not inconsistent with the provisions of these bylaws or the certificate of incorporation.

ARTICLE V.

OFFICERS

5.1. OFFICERS

The officers of the corporation shall be a chief executive officer, a secretary, and a chief financial officer. The corporation may also have, at the discretion of the board of directors, a chairman of the board, a treasurer, one or more vice presidents, one or more assistant vice presidents, one or more assistant secretaries, one or more assistant treasurers, and any such other officers as may be appointed in accordance with the provisions of Section 5.3 of these bylaws. Any number of offices may be held by the same person.

 

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5.2. APPOINTMENT OF OFFICERS

The officers of the corporation, except such officers as may be appointed in accordance with the provisions of Section 5.3 of these bylaws, shall be appointed by the board of directors, subject to the rights, if any, of an officer under any contract of employment.

5.3. SUBORDINATE OFFICERS

The board of directors may appoint, or empower the chief executive officer to appoint, such other officers and agents as the business of the corporation may require, each of whom shall hold office for such period, have such authority, and perform such duties as are provided in these bylaws or as the board of directors may from time to time determine.

5.4. REMOVAL AND RESIGNATION OF OFFICERS; FILLING VACANCIES

Subject to the rights, if any, of an officer under any contract of employment, any officer may be removed, either with or without cause, by an affirmative vote of the majority of the board of directors at any regular or special meeting of the board or, except in the case of an officer chosen by the board of directors, by any officer upon whom such power of removal may be conferred by the board of directors.

Any officer may resign at any time by giving written notice to the corporation. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice; and, unless otherwise specified in that notice, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the corporation under any contract to which the officer is a party.

Any vacancy occurring in any office of the corporation, except such offices as may be filled in accordance with the provisions of Section 5.3 of these bylaws, shall be filled by the board of directors.

5.5. REPRESENTATION OF SHARES OF OTHER CORPORATIONS

The chairman of the board, the chief executive officer, the president, any vice president, the chief financial officer, the secretary or assistant secretary of this corporation, or any other person authorized by the board of directors or the chief executive officer or a vice president, is authorized to vote, represent, and exercise on behalf of this corporation all rights incident to any and all shares, securities or equity interests of any other corporation or entity standing in the name of this corporation. The authority granted herein may be exercised by such person directly or delegated to an attorney or agent.

 

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5.6. AUTHORITY AND DUTIES OF OFFICERS

All officers of the corporation shall respectively have such authority and perform such duties in the management of the business of the corporation as may be designated from time to time by the board of directors.

ARTICLE VI.

INDEMNITY

6.1. INDEMNIFICATION OF DIRECTORS AND OFFICERS

The corporation shall indemnify and hold harmless, to the fullest extent permitted by the Delaware General Corporation Law as it presently exists or may hereafter be amended, any director or officer of the corporation who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”) by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses reasonably incurred by such person in connection with any such Proceeding. Except as otherwise provided in Section 6.5, the corporation shall be required to indemnify a person in connection with a Proceeding initiated by such person only if the Proceeding was authorized by the board of directors.

6.2. INDEMNIFICATION OF OTHERS

The corporation shall have the power to indemnify and hold harmless, to the extent permitted by applicable law as it presently exists or may hereafter be amended, any employee or agent of the corporation who was or is made or is threatened to be made a party or is otherwise involved in any Proceeding by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was an employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses reasonably incurred by such person in connection with any such Proceeding.

6.3. SUCCESSFUL DEFENSE

To the extent that a present or former director or officer of the corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Sections 6.1, or in defense of any claim, issue or matter therein, such person shall be indemnified to the fullest extent permitted by law against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection therewith.

 

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6.4. PAYMENT OF EXPENSES IN ADVANCE

Expenses (including attorneys’ fees) incurred in defending an action, suit or proceeding, whether civil, criminal, arbitral, administrative, regulatory or investigative, by an individual who may be entitled to indemnification pursuant to Section 6.1, shall be paid by the corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if it shall ultimately be determined that such person is not entitled to be indemnified by the corporation as authorized in this Article VI.

6.5. CLAIMS

If a claim by a director or officer for indemnification (following the final disposition of such action, suit or proceeding) or advancement of expenses under this Article VI is not paid in full within sixty days after a written claim therefor by the person entitled to indemnification hereunder has been received by the corporation, such person may file suit to recover the unpaid amount of such claim and, if successful in whole or in part, shall be entitled to be paid the expense of prosecuting such claim. In any such action, the corporation shall have the burden of proving that such person is not entitled to the requested indemnification or advancement of expenses under applicable law.

6.6. INDEMNITY NOT EXCLUSIVE

The indemnification and advancement of expenses provided by or granted pursuant to the other sections of this Article VI shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in such person’s official capacity and as to action in another capacity while holding such office.

6.7. INSURANCE

The corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against any liability asserted against such person and incurred by such person in any such capacity or arising out of such person’s status as such, whether or not the corporation would have the power to indemnify such person against such liability under the provisions of this Article VI.

6.8. OTHER SOURCES

The corporation’s obligation, if any, to indemnify or to advance expenses to any person who was or is serving at its request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise or nonprofit entity shall be reduced by any amount such person may collect as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, enterprise or non-profit enterprise.

 

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6.9. THE CORPORATION

For purposes of this Article VI, references to “the corporation” shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director or officer of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under and subject to the provisions of this Article VI (including, without limitation the provisions of Section 6.4) with respect to the resulting or surviving corporation as such person would have with respect to such constituent corporation if its separate existence had continued.

6.10. EMPLOYEE BENEFIT PLANS

For purposes of this Article VI, references to “other enterprises” shall include employee benefit plans; and references to “serving at the request of the corporation” shall include any service as a director, officer, employee or agent of the corporation which imposes duties on, or involves services by, such director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries.

6.11. CONTINUATION OF INDEMNIFICATION AND ADVANCEMENT OF EXPENSES

The indemnification and advancement of expenses provided by, or granted pursuant to, this Article VI shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

ARTICLE VII.

GENERAL MATTERS

7.1. CHECKS

From time to time, the board of directors shall determine by resolution which person or persons may sign or endorse all checks, drafts, other orders for payment of money, notes or other evidences of indebtedness that are issued in the name of or payable to the corporation, and only the persons so authorized shall sign or endorse those instruments.

 

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7.2. EXECUTION OF CORPORATE CONTRACTS AND INSTRUMENTS

The board of directors, except as otherwise provided in these bylaws, may authorize any officer or officers, or agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the corporation; such authority may be general or confined to specific instances. Unless so authorized or ratified by the board of directors or within the agency power of an officer, no officer, agent or employee shall have any power or authority to bind the corporation by any contract or engagement or to pledge its credit or to render it liable for any purpose or for any amount.

7.3. STOCK CERTIFICATES; PARTLY PAID SHARES

The shares of the corporation shall be represented by certificates, provided that the board of directors of the corporation may provide by resolution or resolutions that some or all of any or all classes or series of its stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the corporation. Notwithstanding the adoption of such a resolution by the board of directors, every holder of stock represented by certificates shall be entitled to have a certificate signed by, or in the name of the corporation by any two authorized officers of the corporation (it being understood that each of the chairman and the vice-chairman of the board of directors, the chief executive officer, the president, any vice-president, the chief financial officer, any assistant treasurer, the secretary and any assistant secretary of the corporation shall be an authorized officer for this purpose) representing the number of shares registered in certificate form. Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the corporation with the same effect as if such person were such officer, transfer agent or registrar at the date of issue.

The corporation may issue the whole or any part of its shares as partly paid and subject to call for the remainder of the consideration to be paid therefor. Upon the face or back of each stock certificate issued to represent any such partly paid shares, upon the books and records of the corporation in the case of uncertificated partly paid shares, the total amount of the consideration to be paid therefor and the amount paid thereon shall be stated. Upon the declaration of any dividend on fully paid shares, the corporation shall declare a dividend upon partly paid shares of the same class, but only upon the basis of the percentage of the consideration actually paid thereon.

7.4. SPECIAL DESIGNATION ON CERTIFICATES

If the corporation is authorized to issue more than one class of stock or more than one series of any class, then the powers, the designations, the preferences, and the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or back of the certificate that the corporation shall issue to represent such class or series of stock; provided, however, that, except as otherwise provided in Section 202 of the Delaware General Corporation Law, in lieu of the foregoing requirements there may be set forth on the face

 

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or back of the certificate that the corporation shall issue to represent such class or series of stock a statement that the corporation will furnish without charge to each stockholder who so requests the powers, the designations, the preferences, and the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights.

7.5. LOST CERTIFICATES

Except as provided in this Section 7.5, no new certificates for shares shall be issued to replace a previously issued certificate unless the latter is surrendered to the corporation and canceled at the same time. The corporation may issue a new certificate of stock or uncertificated shares in the place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, and the corporation may require the owner of the lost, stolen or destroyed certificate, or his legal representative, to give the corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate or uncertificated shares.

7.6. CONSTRUCTION; DEFINITIONS

Unless the context requires otherwise, the general provisions, rules of construction, and definitions in the Delaware General Corporation Law shall govern the construction of these bylaws. Without limiting the generality of this provision, the singular number includes the plural, the plural number includes the singular, and the term “person” includes both a corporation and a natural person.

7.7. DIVIDENDS

The directors of the corporation, subject to any restrictions contained in (i) the Delaware General Corporation Law or (ii) the certificate of incorporation, may declare and pay dividends upon the shares of its capital stock. Dividends may be paid in cash, in property, or in shares of the corporation’s capital stock.

The directors of the corporation may set apart out of any of the funds of the corporation available for dividends a reserve or reserves for any proper purpose and may abolish any such reserve. Such purposes shall include but not be limited to equalizing dividends, repairing or maintaining any property of the corporation, and meeting contingencies.

7.8. FISCAL YEAR

The fiscal year of the corporation shall be fixed by resolution of the board of directors and may be changed by the board of directors.

 

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7.9. SEAL

The corporation may adopt a corporate seal, which shall be adopted and which may be altered by the board of directors, and may use the same by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

7.10. TRANSFER OF STOCK

Stock of the corporation shall be transferable in the manner prescribed by law and in these bylaws. Shares of stock of the corporation shall only be transferred on the books of the corporation by the holder of record thereof or by such holder’s attorney duly authorized in writing, upon surrender to the corporation of the certificate or certificates representing such shares endorsed by the appropriate person or persons (or by delivery of duly executed instructions with respect to uncertificated shares), with such evidence of the authenticity of such endorsement or execution, transfer, authorization, and other matters as the corporation may reasonably require, and accompanied by all necessary stock transfer stamps. No transfer of stock shall be valid as against the corporation for any purpose until it shall have been entered in the stock records of the corporation by an entry showing the names of the persons from and to whom it was transferred.

7.11. STOCK TRANSFER AGREEMENTS

The corporation shall have power to enter into and perform any agreement with any number of stockholders of any one or more classes or series of stock of the corporation to restrict the transfer of shares of stock of the corporation of any one or more classes or series owned by such stockholders in any manner not prohibited by the Delaware General Corporation Law.

7.12. REGISTERED STOCKHOLDERS

The corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends and to vote as such owner, shall be entitled to hold liable for calls and assessments the person registered on its books as the owner of shares, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of another person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of the State of Delaware.

7.13. EXCLUSIVE FORUM.

Unless the corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if the Court of Chancery of the State of Delaware does not have jurisdiction, the federal district court for the District of Delaware) shall, to the fullest extent permitted by law, be the sole and exclusive forum for: (i) any derivative action or proceeding brought on behalf of the corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, other employee or stockholder of the corporation to the corporation or the corporation’s stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law or as to which the Delaware General

 

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Corporation Law confers jurisdiction on the Court of Chancery of the State of Delaware, or (iv) any action asserting a claim arising pursuant to any provision of the Certificate of Incorporation or these bylaws (in each case, as they may be amended from time to time) or governed by the internal affairs doctrine.

Any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of the corporation shall be deemed to have notice of and consented to the provisions of this Section 7.13.

ARTICLE VIII.

AMENDMENTS

Subject to the provisions of the corporation’s certificate of incorporation, the bylaws of the corporation may be adopted, amended or repealed by the stockholders entitled to vote; provided, however, that the corporation may, in its certificate of incorporation, confer the power to adopt, amend or repeal bylaws upon the directors. The fact that such power has been so conferred upon the directors shall not divest the stockholders of the power, nor limit their power to adopt, amend or repeal bylaws.

 

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Exhibit 14.1

ONTO INNOVATION INC.

CODE OF BUSINESS CONDUCT AND ETHICS

Introduction

This Code of Business Conduct and Ethics (the “Code”) applies to all directors, officers and employees (“Employees”) of Onto Innovation Inc. and its subsidiaries worldwide (“Onto Innovation”). The Code covers a wide range of business practices and procedures. While it does not cover every issue that may arise, it does set out basic principles to guide everyone at Onto Innovation because we recognize that our company’s continued success depends upon our commitment to conduct business with honesty, integrity and in compliance with the law everywhere we operate. As a result, all of us are encouraged to read, understand and use the Code as a standard and a tool, along with other Onto Innovation policies and one’s own best judgment, in making decisions, conducting business, ensuring compliance with legal and ethical requirements and maintaining a positive and cooperative work environment.

As Onto Innovation Employees, we are each expected to comply with both the letter and the spirit of this Code. This means we must understand and comply with all of our policies, laws and regulations that apply to our respective jobs, even if we feel pressured to do otherwise, and seek to avoid even the appearance of behavior which is inconsistent with the Code. The Code applies while working on our premises, at offsite locations, customer sites, company-sponsored business and social events, trade shows or at any other place where you are or could be considered to be representing Onto Innovation. Our Code also requires us to seek guidance if we have questions or concerns and to cooperate fully in any investigation of suspected violations of the Code that may arise in the course of our employment. Periodically, we may be asked to provide a written certification that we have reviewed and understand the Code, comply with its standards, and are not personally aware of any violations of the Code by others. This certification is a pledge to live up to our Code and its expectations and to promptly raise concerns about any situation that you think may violate our Code. Onto Innovation is committed to compliance with our Code. Anyone who violates our Code puts themselves, fellow Employees, and Onto Innovation at risk and are subject to disciplinary action up to and including termination of employment.

If a policy in this Code conflicts with the law, we must comply with the law. However, if the Code conflicts with a local custom or policy, we must comply with the Code. If you have any questions about these conflicts, are faced with a potential conflict between your ethical standards and the conduct of others at Onto Innovation or if you are in a situation which you believe may violate or lead to a violation of this Code, follow the Compliance Procedure guidelines discussed below.

In line with Onto Innovation’s values and commitment to its Employees, it is important to be aware that anyone may make a good faith report of an ethical violation or incident related to this Code in confidence and without fear of the retaliation, discharge or discrimination in any way against them. In those cases where the identity of the reporter needs to remain anonymous, Onto Innovation will assure that this requirement is honored.

Code of Business Conduct and Ethics

Onto Innovation adopted this Code to:

 

   

Encourage honest and ethical conduct;

 

   

Encourage full, fair, timely and accurate disclosure of financial information;

 

   

Encourage compliance with applicable laws and regulations;

 

   

Ensure the protection of Onto Innovation’s business interests, assets and confidential information, and

 

   

Deter wrongdoing.

Each employee is obligated to make every reasonable effort to comply with all applicable laws and regulations, including U.S. laws and all local laws and regulations that apply to the Onto Innovation. While it is not possible to list all policies and laws to be observed, or all prohibited business practices to be avoided, the Code helps detail Company expectations of every one of us. The following reflects the general principles of the Code. Additional guidance, descriptions, insights and specific examples related to each of these principles can be found in Attachment A.


We must all be knowledgeable of and comply with the basic principles of the Code as follows:

 

 

Compliance with Laws, Rules and Regulations: While conducting business on behalf of Onto Innovation, respect, obey and comply with the laws, rules and regulations of the cities, states and countries in which Onto Innovation operates.

 

 

Conflicts of Interest: Avoid any actual or apparent conflicts of interest (other than conflicts of interest that have received appropriate approval) such as taking actions or having interests that may interfere with performing one’s work objectively and effectively or where one receives improper personal benefits as a result of their position with Onto Innovation.

 

 

Open and Honest Dealing: Onto Innovation encourages an open and honest atmosphere within Onto Innovation such that important information is freely exchanged with and disclosed to management and misleading information is not purposely provided.

 

 

Insider Trading: Onto Innovation’s confidential information is not permitted to be used or shared for stock trading purposes (“Insider Trading”) or for any purpose except the conduct of Onto Innovation’s business.

 

 

Fair Disclosure: Statements regarding material, non-public information about Onto Innovation or its securities may not be made to the financial community, Onto Innovation stockholders or the press without the express authorization of the CEO, CFO or General Counsel.

 

 

Payments to Agencies/Consultants: All payments and arrangements with outside agents, consultants, contractors and other parties should be per a written agreement.

 

 

Corporate Opportunities: Taking personal advantage of opportunities that are discovered, developed or known through the use of corporate property, information or one’s position without the appropriate approval at Onto Innovation is prohibited.

 

 

Competition and Fair Dealing: Respect the rights of and deal fairly with Onto Innovation’s customers, suppliers, competitors and other Employees.

 

 

Gifts, Gratuities and Entertainment: As part of Onto Innovation’s business, only reasonable gifts or business entertainment may be offered, given, or provided to or accepted from our customers, only in order to create good will and sound working relationships, and never to gain unfair advantage with customers.

 

 

Political Contributions: While Onto Innovation encourages everyone to vote and be active in the political process, it is Onto Innovation’s policy not to contribute any Onto Innovation funds, assets or services to any political party, committee, organization, or candidate for any office at any level in any country.

 

 

Prohibition Against Discrimination and Harassment: Participating in any form of harassment, retaliation, or discrimination because of race, color, national origin, sex, religion, creed, age, disability, sexual orientation, marital status, military service or any other basis protected by federal, state or local laws is prohibited.

 

 

Health and Safety: Maintain a safe and healthy workplace following safety and health rules and practices, appropriately report issues and refrain from any violent or threatening behavior.

 

 

Record-Keeping: Where we are required to make a record of or report on any form of business information, such record/report must be made honestly and accurately in order to make responsible business decisions.

 

 

Confidentiality: When receiving confidential information, maintain the confidentiality of the materials entrusted by Onto Innovation or its customers, unless disclosure is appropriately authorized.

 

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Protection and Proper Use of Company Assets: Protect Onto Innovation’s assets, including our work product and company proprietary information, to ensure its continued and efficient use and security.

 

 

Bribery and Payments to Government Personnel: Never offer bribes, accept kick-backs, or participate in corrupt activities of any kind. Further, the giving and/or offering money or anything of value, directly or indirectly, to a foreign or domestic governmental official, agency, party, official or candidate under any circumstances in order to induce the recipient to give Onto Innovation business, purchase Onto Innovation’s products or otherwise benefit Onto Innovation’s business in their country is strictly prohibited.

Waivers of the Code of Business Conduct and Ethics

Any waiver of any provision of this Code for a member of Onto Innovation’s Board of Directors, the principal executive officer, principal financial officer, principal accounting officer, other employees performing similar functions, or other executive officers must be approved in writing by Onto Innovation’s Board of Directors and promptly disclosed as required by law. Any waiver of any provision of this Code with respect to any other officer, employee, agent, contractor or consultant must be approved in writing by the General Counsel or the Chief Financial Officer. Any such waiver will be promptly disclosed, along with the reasons for the waiver, as required by applicable law, rule, regulation, and the applicable listing standards of the New York Stock Exchange (“NYSE”).

Compliance Procedures

To protect Onto Innovation and its employees, it is essential that all persons promptly and fully report any known or suspected violation(s) of the Code or any laws or policies applicable to Onto Innovation. This duty applies whether you are personally involved in the situation or not. Reporting a known or suspected violation of the Code by others should not be considered an act of disloyalty, but an action to safeguard the reputation and integrity of Onto Innovation and its employees.

We must all must work to ensure prompt and consistent action against violations of this Code. However, in some situations it is difficult to know right from wrong. Since we cannot anticipate every situation that will arise, it is important that we have a way to approach a new question or concern. These are the steps to keep in mind:

 

 

Make sure that all the facts have been collected

In order to reach the right solutions, we must be as fully informed as possible.

 

 

Ask yourself: What specifically am I being asked to do? Does it seem unethical or improper?

This will enable you to focus on the specific question you are faced with, and the alternatives you have. Use your judgment and common sense; if something seems unethical or improper, it probably is.

 

 

Discuss the problem with your supervisor or manager

The basic guidance for all situations is to ask first and act later. In many cases, your supervisor or manager will be more knowledgeable about the question and will appreciate being included in the decision-making process. Remember that it is the responsibility of our supervisors and managers to help solve problems.

 

 

Seek help from Onto Innovations resources

In the case where it may not be appropriate to discuss an issue with your supervisor or where you do not feel comfortable approaching your supervisor with a question, discussing it with a Human Resources representative or senior management is encouraged.

 

 

Reporting improper behavior

The section below on reporting presents the procedure for reporting incidents or activities relating to unethical or improper behavior.

 

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Reporting any Illegal or Unethical Behavior

Everyone is encouraged to report either orally or in writing to your immediate supervisor, or alternate line of authority as described below, all evidence of any know or believed activity by an Onto Innovation department or an Employee that may constitute:

 

   

A violation of Onto Innovation’s Code of Business Conduct and Ethics or Onto Innovation’s Financial Code of Ethics;

 

   

Any other instances of corporate fraud or unethical business conduct;

 

   

A violation of State or Federal law;

 

   

A violation of any U.S. Securities and Exchange Commission (SEC) and the New York Stock Exchange (NYSE) regulation; or

 

   

Substantial and specific danger to an Employee’s or the public’s health and safety.

Onto Innovation has made available a variety of alternative reporting mechanisms to allow everyone the ability to report any of the above activities in a manner with which they are comfortable. Anyone who wants to report evidence of alleged improper activity can choose from the following:

 

   

Contact your immediate supervisor, or the supervisor’s manager.

 

   

In instances where the supervisor or manager’s response is not satisfactory or where addressing such concerns to a supervisor or the supervisor’s manager is uncomfortable for any reason, the Human Resources department, General Counsel’s office or a member of senior management may alternatively be contacted.

Call 1-888-262-6937, the confidential, global, toll-free phone number dedicated to these reports. For reference, this number is also listed on Onto Innovation Intranet websites (https://nanometrics.sharepoint.com/sites/intranet or http://rzone/). Anonymous telephonic communications will be accepted.

 

   

Address any concerns in writing to: The Office of General Counsel, Onto Innovation Inc., 550 Clark Drive, P.O. Box 860, Budd Lake, New Jersey 07828. Anonymous written communications will be accepted.

 

   

Address any concerns or file a report via email to codeofethics@ontoinnovation.com. Due to the nature of email, the anonymity of these reports cannot be guaranteed.

 

   

Contact any of the members of the Board’s Audit Committee. Again, anonymous telephone communications will be accepted.

In filing a report and to facilitate a complete investigation of the suspected or known violation, it is necessary to provide as much specific information as possible including names of people involved and any witnesses, dates, times, places, and events that took place and your perception of why the incident(s) may be a violation. All reports of violations of the law or the Code will be kept confidential to the fullest extent possible consistent with applicable laws and Onto Innovation’s need to investigate the matter. Anyone filing such a report is also urged to keep all information regarding the internal investigation confidential and understand that they are expected to fully cooperate with any such investigation. Those who choose to identify themselves as part of the process will receive a reply to their report within twenty (20) working days or as soon as practical thereafter.

Anyone who knowingly fails to report wrongdoing per any of the above steps will have such action considered in their job performance appraisal as well as potentially subject them to discipline, up to and including discharge.

It is important to be aware that ethical violations may be reported in confidence and without fear of retaliation. If the situation requires that the identity of the reporter be kept secret, such anonymity will be protected. As stated, Onto Innovation does not permit retaliation, discharge, or other discrimination of any kind against someone who, in good faith, reports a known or suspected ethical violation or incident related to this Code. Any employee who retaliates against an employee for seeking help or making a good faith report shall be subject to disciplinary action, up to and including termination of employment. Employees who believe they have experienced retaliation for reporting possible violations should contact Human Resources or the General Counsel.

 

4


Investigations

Subject to the Board’s general authority to administer this Code, the investigation of violations and determination of disciplinary action is the responsibility of the following parties:

 

Board of Directors (or its designated committee):    Matters involving members of the Board or executive officers.
Chief Financial Officer and General Counsel:    Matters involving other Employees, agents or contractors (provided that should any such matters impact the reputation of Onto Innovation with customers, shareholders, suppliers and/or employees, or materially impact Onto Innovation’s financial performance, the Board shall be notified in a timely manner).

The above responsible parties may designate others to conduct or manage investigations on their behalf and recommend disciplinary action. In addition, the Chief Financial Officer and the General Counsel will periodically report Code violations and the corrective actions taken to the Board or its designated committee. The Board reserves the right to investigate violations and determine appropriate disciplinary action on its own or to designate others to do so in place of, or in addition to, the Chief Financial Officer and the General Counsel.

Any suspected violations will be promptly investigated. If it is determined that evidence of a violation exists, the individual subject to investigation will be notified. The individual will have an opportunity to respond to any allegations made against them. A person suspected of violating the Code may be suspended with or without pay while an investigation is conducted. If Onto Innovation determines that a violation of the Code or law has occurred, Onto Innovation will take prompt and appropriate corrective action to ensure compliance with legal and ethical requirements.

Disciplinary Action

The matters covered in this Code are of the utmost importance to Onto Innovation, its stockholders and its business partners, and are essential to Onto Innovation’s ability to conduct its business in accordance with its stated values. Onto Innovation expects all of its employees to adhere to these rules in carrying out their duties.

Onto Innovation will take appropriate action against anyone whose actions are found to violate the Code. Disciplinary actions may include, at Onto Innovation’s sole discretion, oral or written reprimand, suspension or immediate termination of employment or business relationship, or any other single or combine disciplinary action as deemed appropriate to the circumstances. A record of the disciplinary action will be retained in the Employee’s personnel file.

In determining what disciplinary action is appropriate in a particular case, all relevant information will be taken into account, including the nature and severity of the violation, any history of warnings and violations, whether the violation appears to have been intentional or inadvertent and whether the violator reported his or her own misconduct. Onto Innovation will strive to enforce the Code in a consistent manner while accounting for all relevant information.

Where Onto Innovation has suffered a loss, it may pursue its remedies against the individuals or entities responsible. Furthermore, certain violations of this Code may also be reported to the appropriate authorities and subject to civil or criminal prosecution by governmental authorities and others.

 

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ATTACHMENT A

ONTO INNOVATION CODE OF BUSINESS CONDUCT AND ETHICS

ADDITIONAL GUIDANCE

The following presents additional guidance, descriptions, insights and specific examples related to each of the principles cited in the Onto Innovation Code of Business Conduct and Ethics.

 

1.

Compliance with Laws, Rules and Regulations

Obeying the laws, both in letter and in spirit, is the foundation on which Onto Innovation’s ethical standards are built. While conducting business on behalf of Onto Innovation, we must all respect and obey the laws of the cities, states and countries in which Onto Innovation operates. Although not everyone is expected to know the details of these laws, it is important to know enough to determine when to seek advice from management. If there is a question as to the legal validity of an action, follow the Compliance Procedure guidelines of the Code or discuss the matter with the General Counsel.

Laws, rules and regulations issued by government agencies and/or other institutions govern many aspects of Onto Innovation’s business and Onto Innovation is committed to complying with all such laws. Onto Innovation employees located outside of the United States must make every reasonable effort to comply with the laws and regulations of the United States, including the U.S. Foreign Corrupt Practices Act and the U.S. Export Control Act, in addition to applicable local laws. The following reflects a sampling of the laws, rules and regulations to which Onto Innovation is subject:

 

   

The SEC and the NYSE, with which Onto Innovation is listed, both have rules and regulations that impact Onto Innovation’s business and financial reporting. Additionally, individuals are governed by these laws as well. For example, Onto Innovation’s Insider Trading Policy (discussed in more detail in #4 below) has been developed to assist us in our continued compliance with this SEC regulation.

 

   

Anti-corruption laws are established in many countries around the world in which Onto Innovation does business which prohibit bribery or the influencing of decisions through improper means as further discussed in #16 below.

 

   

Antitrust laws exist which are designed to encourage and protect free and fair competition and to prohibit companies such as Onto Innovation from taking actions which unreasonably restrict competition. These laws regulate Onto Innovation’s relationships with its competitors, customers, suppliers and distributors.

In conducting our business, we must not communicate or enter into any agreements or understandings with a competitor, customer or supplier which:

 

   

fixes prices (i.e. set prices or price related terms);

 

   

coordinates bids, the intent to bid or promotional allowances;

 

   

sets discounts, terms or conditions of sale, credit terms, secret rebates, profits or profit margins or apportions costs;

 

   

refuses to deal with or boycotts a customer or supplier;

 

   

divides or allocates markets, territories or customers;

 

   

places limitations on production; or

 

   

engages in pricing practices that suggest a monopoly.

 

   

Export control laws and regulations are in place which govern our products, services and technology and may restrict the shipment of products to certain destinations. The United States, for example, maintains such restrictions. The U.S. regulations are complex and apply to certain products we export, even if we ship them from outside of the United States. In certain circumstances, a presentation containing technical data made to foreign nationals in the United States may constitute an “export,” In some cases, a license or other government approval is necessary before the product can be exported. As a result, we need to be aware of and comply with any U.S. restrictions on doing business with certain foreign countries, all applicable export control requirements and any trade laws and regulations in the countries where Onto Innovation does business.

 

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Laws and regulations exist which apply to negotiation of and entry into government contracts as well as contact and dealings with government employees and public officials. It is Onto Innovations policy to adhere to high ethical, moral and legal standards of business conduct when pursuing any governmental contract including strict compliance with all related local, state, federal, foreign and other applicable laws, rules and regulations.

Onto Innovation is committed to obeying both the letter and spirit of these laws. Yet while the spirit of these laws is straightforward, their application to particular situations can be quite complex. If any questions arise regarding compliance with any laws, rules and regulations, please consult the General Counsel.

Onto Innovation will not tolerate any act that violates the law, even when the action appears to be in Onto Innovation’s best interest. Onto Innovation will ensure that no one is adversely affected because he or she refuses to carry out a directive which, in fact, constitutes corporate fraud or is a violation of State or federal law.

 

2.

Conflicts of Interest

A “conflict of interest” exists when a person’s private interest interferes with the interests or benefits of Onto Innovation in any way. Personal conflicts of interest are prohibited as a matter of Onto Innovation policy, unless the conflict has been waived in writing by the company. While it is difficult to identify every potential conflict of interest, the following is an overview of some situations that could create a conflict of interest.

A conflict situation can arise when an individual takes actions or has personal or family interests that may make it difficult to perform their work objectively, effectively and could reasonably be expected to cause the person’s judgment to be influenced to make a decision differently than they would otherwise make absent such conflict. For example, a conflict of interest would potentially arise in a situation where you work part time in the evening for a company that makes a product that competes with the products of Onto Innovation or a company that supplies components to Onto Innovation. Such work would affect your objective decisions on behalf of Onto Innovation.

Conflicts of interest may also arise when a person or a member of their family receives improper personal benefits as a result of the individual’s position with Onto Innovation. An example of this would be hiring a family member or person with whom you have a close personal relationship or supervising a family member or person with whom you have a close personal relationship. Another example would be engaging a company for which a member of your family works to supply product or services to Onto Innovation. This could give rise to the appearance that Onto Innovation was selected because of the relationship and therefore must be avoided. Similarly, accepting cash, gifts, favors, excessive entertainment or similar benefits from any individual or company that does business or wants to do business with Onto Innovation or is a competitor of Onto Innovation can result in a conflict of interest. In addition, loans to, or guarantees of obligations of, Employees and their family members create conflicts of interest and, in the case of executive officers, may be against the law.

Directly or indirectly competing with Onto Innovation in its business activities is also a conflict of interest. Such conflict of interest arises when any of us work simultaneously for or contract with a competitor, customer or supplier. As a result, no Employee is allowed to work for a competitor, customer or supplier as a manager, employee, independent contractor, consultant or Board member. Similarly, disclosing to an outside company or using for your benefit confidential or non-public information regarding Onto Innovation or other organizations with which Onto Innovation does business would be a conflict of interest. Therefore, the best policy is to avoid any direct or indirect business connection with our competitors, customers or suppliers, except on Onto Innovation’s behalf.

None of us may hold a financial interest in any of Onto Innovation’s customers, suppliers or competitors, unless such company is a publicly owned corporation. If the company is a publicly owned corporation, it is acceptable to hold up to one percent (1%) of such company’s outstanding shares. Anyone seeking a variance from this rule must first obtain the approval from Onto Innovation’s CEO, CFO or General Counsel.

 

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Conflicts of interest may not always be clear-cut. It is, however, very important to avoid any actual or apparent conflicts of interest for they are prohibited as a matter of Onto Innovation policy, except under Board approved guidelines. If you have a question or believe you have become aware of a conflict or potential conflict, refer to the Compliance Procedure guidelines of the Code to help resolve the issue.

 

3.

Open and Honest Dealing

Honesty requires a good faith intent to convey the truth as best we know it and to avoid communicating in a way that is likely to mislead or deceive. Openness is a willingness to comfortably voice your concerns and ask questions as well as being receptive to that which is being communicated to you.

In all of our interactions with co-workers at Onto Innovation, whether collaborating on a developmental project, reporting the results or status of your job responsibilities, providing feedback, discussing issues or in any other of the numerous dealings we are faced with each day, effective communication, starting with openness and honesty, is essential. To choose to withhold information, communicate only the “good”, or ignore the insights or data provided by another Employee are practices which not only could have a negative effect on relationships with other Employees but also could ultimately have a severe impact on Onto Innovation’s business. Thus, it is vital that everyone at Onto Innovation strives to assure that we each are open and deal honestly in our communications and the conduct of our responsibilities.

From a corporate perspective, Onto Innovation is committed to full, fair, accurate, timely and understandable disclosure in all public communications and in the information it provides to its stockholders. As a public company, Onto Innovation is subject to securities laws, regulations and reporting obligations which requires the company to file reports, proxy statements and other information with the SEC and/or the NYSE. We also provide public earnings information and other disclosures to the investment community. We believe a culture of open and honest dealing is essential to maintaining investor confidence and are committed to the highest standards of accuracy, quality and integrity in our business and financial reporting. Onto Innovation expects all employees who provide information for or are involved in the preparation of SEC reports or other public documents to use their best efforts to ensure that the information and disclosures are full, fair, accurate, timely and understandable. False or misleading entries, unrecorded funds or assets, or payments without appropriate supporting documentation and approval are strictly prohibited and violate Onto Innovation policy and the law. Inaccurate, incomplete or untimely reporting will not be tolerated and can severely damage Onto Innovation and cause legal liability.

Anyone who assists in the preparation of our reports or other public information must disclose to senior management all material facts known to them and ensure that senior management is aware of such facts on an ongoing basis. If you become aware of any material information that you believe should be disclosed to the public in Onto Innovation’s reports filed with the SEC, it is your responsibility to bring such information to the attention of the Chief Financial Officer or report it in a manner set forth in Onto Innovation’s Financial Code of Ethics. If there is any doubt about whether a fact is “material” and should be disclosed, an executive officer should be consulted. If you reasonably believe that questionable accounting or auditing conduct or practices have occurred or are occurring, your concerns should be directed immediately to the Chief Financial Officer or the General Counsel or be reported in a manner set forth in Onto Innovation’s Financial Code of Ethics.

Finally, it is against the law to mislead or manipulate our accountants with the intent to influence an audit of our financial statements. We must be open and honest with our accountants and auditors.

 

4.

Insider Trading

Anyone who has access to Onto Innovation’s Material Non-Public Information is not permitted to use or share that information for stock trading purposes or for any other purpose except the conduct of Onto Innovation’s business. Material Non-Public Information is any information concerning Onto Innovation’s business, prospects, securities, or market that an investor might consider important in deciding whether to buy or sell Onto Innovation securities or that could affect the market price of the securities. All Material Non-Public Information about Onto Innovation should be considered confidential information. To use Material Non-Public Information for personal financial benefit, or to “tip” others who might make an investment decision on the basis of this information, is considered “insider trading” and is not only unethical but also illegal.

 

8


To help understand insider trading and why it must be avoided, the following actual, real life case is offered:

Husband, an officer at Corporation, confides in Wife that Corporation would announce an expected loss for the quarter and that the price of Corporation stock would likely decline as a result. Wife breaches her duty of confidence and discloses the inside information at a cocktail party to Friend. Friend proceeds to make a series of transactions in Corporation stock that would rise in value if Corporation’s stock price went down. Corporation releases its negative earnings announcement and its stock price drops about 40 percent. Friend winds up making approximately $269,000 on his transactions.

Wife received absolutely no pecuniary benefit from Friend’s trades, and in fact probably did not even know about it nor even expected that Friend would take this “cocktail” information and use it for trading. Nevertheless, Wife was found to have violated the SEC insider trading law as did Friend. Wife’s inappropriate discussion with Friend at the cocktail party cost her dearly including joint and several liability for the return of Friend’s $269,000 profit plus interest; $100,000 in civil penalties; attorney’s fees for 5 years of litigation, including two federal jury trials; and five years of torment, newspaper stories, and loss of her reputation in the community. (SEC v. Donna Yun & Jerry Burch).

With respect to investing in Onto Innovation stock (either pursuant to the Savings and Investment Plan, Onto Innovation Employee Stock Purchase Plan or otherwise), keep in mind that such investment is a personal decision and should be made in light of the portfolio diversification needs of such individual, as well as other factors and circumstances applicable to the individual. In general, frequent or excessive trading in Onto Innovation common stock or short-selling of Onto Innovation common stock is not only inconsistent with the best interests of Onto Innovation and against company policy but also may be in violation of securities laws, whether intentional or inadvertent.

Onto Innovation has established certain specific policies with respect to Onto Innovation stock transactions applicable to directors, officers and designated employees and any immediate family members. For example, “blackout” periods have been established, during which directors, officers and designated employees cannot trade in Onto Innovation common stock (regardless of whether such individual is in possession of material, nonpublic information). Outside such blackout periods, Onto Innovation has established certain “pre-clearance” procedures applicable to directors, officers and designated employees in connection with Onto Innovation common stock transactions by such individuals. In addition, employees may not buy or sell securities of any other company, including Onto Innovation’s suppliers, customers and other business partners, when in possession of Material Non-Public Information about that company. These policies can be found in Onto Innovation’s Insider Trading Compliance Program, a copy of which can be found on Onto Innovation Intranet websites (http://rzone/ or https://nanometrics.sharepoint.com/sites/intranet) or provided upon request. If any questions arise regarding Onto Innovation’s Insider Trading Policy, please consult with management in the Finance department or with the General Counsel.

 

5.

Fair Disclosure

Onto Innovation from time to time may receive calls from the press, securities analysts, investment bankers or shareholders inquiring about Onto Innovation or its financial performance. Regarding these contacts, we must all be aware that there are very strict rules concerning the selective disclosure of non-public information to persons outside of Onto Innovation. In the U.S., Regulation FD (Fair Disclosure) is a rule which has been enacted by the SEC that addresses such selective disclosure. This law prohibits companies from selectively disclosing material nonpublic information to analysts, institutional investors, and others without making a broad public disclosure at the same time. The rule reflects the view that all investors should have equal access to a company’s important disclosures at the same time. As a result, we must avoid posting or discussing information concerning Onto Innovation’s products or business on the Internet, social networking media, or any other public forum without prior written consent of the General Counsel or the Chief Financial Officer.

To assure that Onto Innovation remains in compliance with this law, no one other than the CEO, the CFO or the CEO’s designee is authorized to speak with the persons referenced above. This includes, but is not limited to, discussing or making general or specific statements about Onto Innovation’s financial performance, product offerings or other business transactions. If you receive a call from any person outside of Onto Innovation who inquires on any of these topics, you should decline to speak with him or her and instead refer that person to the CEO, CFO or General Counsel.

 

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In addition, it is Onto Innovation’s policy not to respond to rumors about Onto Innovation. Companies have been found in violation of securities laws if their spokespeople erroneously denied a rumor, even if the spokesperson believed what he or she was saying was true. To that end, we must all avoid responding to any such inquiries regarding Onto Innovation thereby assuring that Onto Innovation’s response is a consistent message communicated solely by its authorized representative.

In the event that a statement or disclosure referenced above is made, whether by mistake or otherwise, the CEO, CFO or General Counsel must immediately be notified in order that Onto Innovation be able to meet any reporting requirements it may have as a result.

 

6.

Payment to Agencies/Consultants

Arrangements with outside agents, consultants, contractors and other parties should be in writing. The document should clearly describe the results required, the commission or fees to be paid, how fees are to be paid, the length of the agreement, and the commitment to comply with all laws and regulations.

All payments to consultants, agents, contractors and others shall be paid in accordance with proper business practices and based upon reasonable value for the service performed. Payments must be supported by adequate documentation.

By adhering to the above, we can assure that Onto Innovation receives appropriate value for its expenditures, the expectations and terms of the engagement are clearly defined, potential liability is minimized and Onto Innovation’s interests are best protected.

 

7.

Corporate Opportunities

Each of us must avoid taking personal advantage of opportunities that are offered to you by virtue of your employment with Onto Innovation or discovered through the use of Onto Innovation property, information or position without the consent of the Board. We should all be respectful of Onto Innovation property, information, and position, and make sure that none of us, nor any of our family members, use them for personal gain. Discounts on personal purchases of a supplier or customer’s products or services should not be accepted unless such discounts are offered to all Employees in general. As an Employee, we owe a duty to Onto Innovation to advance Onto Innovation’s legitimate interests when the opportunity to do so arises.

For example, through one’s position with Onto Innovation, you may, on occasion, become aware of a business opportunity, such as a new technology, product or intellectual property offering. Our policy does not permit any of us from taking personal advantage of such an opportunity unless it has been offered to Onto Innovation first. If Onto Innovation declines in writing to pursue the opportunity, then you may pursue it.

Sometimes the line between personal and company benefits is difficult to draw, and sometimes there are both personal and company benefits in certain activities. Anyone who intends to make use of company property or services in a manner not solely for the benefit of Onto Innovation should consult beforehand with the General Counsel.

 

8.

Competition and Fair Dealing

We seek to outperform our competition fairly and honestly. We seek competitive advantages through superior performance and never through unethical or illegal business practices. Although we seek information about our competitors, stealing proprietary information, possessing trade secret information that was obtained without the owner’s consent, or inducing such disclosures by past or present employees of other companies is prohibited. It is contrary to Onto Innovation practice and ethics to hire, commission or retain a competitor’s current or former employee solely to obtain such information.

Each of us should endeavor to respect the rights of and deal fairly with Onto Innovation’s customers, suppliers, competitors and their employees. No one should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other intentional unfair-dealing practice.

 

10


When making a purchase on behalf of Onto Innovation, put Onto Innovation’s interests first and seek to obtain the maximum value for the money spent. At the same time, treat the vendor fairly, honestly, with courtesy and avoid any favoritism or appearance of preferential treatment.

Our products and services must be designed and manufactured to meet our obligations to customers. All inspection and testing documents must be handled in accordance with all applicable regulations.

There are many laws and regulations which define and promote fair business practices and protect the competitive environment. For example, the competition laws, known in the U.S. as antitrust laws, protect against practices that interfere with free competition. These laws are designed to promote a free and open marketplace in which each business enterprise has an opportunity to compete fairly on the basis of price, quality and service. To comply with these laws, we must all deal fairly with Onto Innovation’s customers, service providers, suppliers, competitors and their employees and not take unfair advantage of anyone through unfair dealing practices. Should a question arise regarding any competitive activity within the market, please contact the General Counsel with regard to the matter.

 

9.

Gifts, Gratuities and Entertainment

The purpose of business entertainment and gifts in a commercial setting is to create good will and sound working relationships and not to gain unfair advantage with our customers. No gift, favor or entertainment should ever be offered, given, provided or accepted if it obligates, or appears to obligate, the recipient, or if it might be perceived as an attempt to influence fair judgment. To that end, we must never give or accept cash or its equivalent in connection with a business transaction. Further, none of us, or anyone of our family members or agents, should provide to or accept a gift from a customer, supplier, or other applicable party unless it:

 

   

is not a cash gift;

 

   

is consistent with customary business practices;

 

   

is not excessive in value;

 

   

cannot be construed as a kickback, bribe or payoff; and

 

   

does not violate any laws or regulations.

Gifts, gratuities and entertainment that we are prohibited from accepting must not be offered to other Employees or agents of Onto Innovation.

For further clarification, gifts of a nominal value may be accepted on an infrequent or occasional basis, such as during the holiday season, as a reasonable business courtesy. Routine business-related entertainment, such as a business lunch or dinner, sports outings or cultural events, is acceptable under this policy. At times, alcohol may be available at Onto Innovation-sponsored functions and business-related activities. In such situations, we must all use discretion and act responsibly to ensure our safety and the safety of others.

As an example, suppose that one of Onto Innovation’s suppliers offers to take you to lunch and also says that he’s sending out cash gift cards to all his clients as a token of appreciation. Is this acceptable? The answer is that the cash gift card cannot be accepted as a gift of cash or its equivalent is always prohibited. The lunch, however, may be accepted as long as it does not influence a business decision or create an appearance of bias in your interactions with the vendor.

It is important to be aware that specific laws apply to interactions with government officials and employees. For example, the U.S. and other countries have strict laws that prevent providing anything, including food or beverages, to a government employee. When doing business with government agents, employees, or officials be sure to understand the applicable laws as well as local customs and norms.

Should a question arise as to whether a gift or a proposed gift is appropriate, please discuss the offer with management prior to giving or accepting the gift.

 

11


10.

Political Contributions

Onto Innovation encourages everyone to vote and be active in the political process. Onto Innovation does not in any way restrict anyone’s right to participate personally, on their own time, in political activities or to use personal funds for political purposes. If someone chooses to hold public office, either by election or appointment, they must take into account any potential for actual or apparent conflict of interest and should also disclose their intentions in advance with their supervisor. Additionally, federal and many state laws restrict the use of corporate funds, assets and time in connection with federal and state elections.

In consideration of the above, it is Onto Innovation’s policy not to make any political contribution to any political party, committee, organization, or candidate for any office (federal, state or local) in the United States or any foreign country. “Political contributions” include direct and indirect payments, loans, advances, deposits, or gifts of money or assets or any service. It also includes subscriptions, memberships, tickets, purchases of advertising space, payment of expenses, or compensation of employees for a political organization, candidate or public official. Further, this restriction means that corporate facilities or other assets may not be used for the benefit of political candidates or parties.

Everyone has the option to support the political process through personal contributions or by volunteering their personal time to the candidates or organizations of their choice. These activities, however, must not be conducted on company time or involve the use of any company resources such as telephones, computers or supplies. Any personal political contributions will not be reimbursed.

Onto Innovation may only participate in selected lobbying activities conducted by industry or local associations and only upon the written authorization of the General Counsel. No one should lobby on their own personal behalf while on company time.

 

11.

Prohibition Against Discrimination and Harassment

The diversity of Onto Innovation’s work force is a tremendous asset. We are firmly committed to providing equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or harassment of any kind. Onto Innovation’s policy strictly prohibits any form of harassment, retaliation, or discrimination because of race, color, national origin, ancestry, gender, religion, creed, age, disability, affectional or sexual orientation, marital status, familial status, atypical hereditary cellular or blood trait, disability (including AIDS and HIV infection), genetic information, military service or any other basis protected by Federal, State or local laws. All such harassment or discrimination is unacceptable and violates Onto Innovation policy.

Each of us has the right to a work environment free from harassment, regardless of whether the harasser is a co-worker, supervisor, manager, customer, vendor or visitor. Harassment can include any behavior (verbal, visual, sexual or physical) that creates an intimidating, offensive, abusive or hostile work environment. In addition, any harassment that either impacts or influences wages, hours, working conditions or employment advantages is specifically prohibited. Sexual harassment includes harassment of a sexual nature of a person of the same or opposite sex as the harasser. Employees must not engage in any of these types of behavior and must actively contribute to a respectful work environment.

Examples of harassing behavior include, but are not limited to:

 

   

Any unwelcome behavior, such as verbal or physical conduct designed to threaten, intimidate or coerce.

 

   

Verbal taunting (including racial and ethnic slurs, inappropriate jokes or language).

 

   

Negative stereotyping.

 

   

Unwelcome sexual advances, requests for sexual favors or other verbal or physical conduct of a sexual nature in which:

 

   

submission to the conduct is either an explicit or implicit term or condition of employment; or

 

   

submission to or rejection of the conduct by an individual is used as the basis for making employment decisions, including advancement, affecting such individual – known as “quid pro quo,” or “this for that.”

 

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It is Onto Innovation’s goal to create a workplace free from harassment, intimidation, violence and other disruptive behaviors. Employees must not engage in this type of behavior and must actively contribute to a respectful work environment.

As is the case with any violation of the Code, we all have the responsibility to report any harassing behavior or condition regardless of if we are directly involved or just a witness. Retaliation for making a complaint or for assisting in the investigation of a discrimination or harassment complaint is prohibited by Onto Innovation. Should you be subject to or observe any such offending behavior, report it to your supervisor, another member of your management chain, your Human Resources representative, or through the reporting channels of this Code. Onto Innovation will act promptly in investigating the concern and directly address the issue with the individuals involved. We recognize the sensitive nature of these claims and will work to ensure confidential treatment of the allegations in order to protect all involved.

If someone is found to have committed discriminatory harassment, retaliation, or serious related behaviors, they may be disciplined up to and including discharge. Furthermore, Onto Innovation reserves the right to take whatever additional actions are necessary to protect its legal rights under such circumstances. For further information, please refer to Onto Innovation’s Harassment/Sexual Harassment Policy or contact a Human Resources representative.

 

12.

Health and Safety

Onto Innovation strives to provide all of us with a safe and healthful work environment. We each have the responsibility for maintaining a safe and healthy workplace for everyone else by following safety and health rules and practices, and reporting accidents, injuries and unsafe equipment, practices or conditions. Onto Innovation prohibits the use of any equipment while conducting a business activity in a way that may cause distraction and/or result in injury or damage. Immediately report any risk or hazard to management. In addition, managers are to investigate any reported risks or hazards immediately with the help of the appropriate Onto Innovation personnel.

Violence, intimidation and threatening behavior in the workplace are not permitted. Examples of such conduct include extreme or inappropriate verbal or physical threats; harassing or threatening phone calls, email or written communication directed towards an Employee or his or her friends/family members; stalking; and the destruction of personal and/or company assets. Further, to preserve Employee safety and security, weapons, firearms, ammunition, explosives and incendiary devices are forbidden on any Onto Innovation property or in an Employee’s possession while conducting Onto Innovation business offsite. Any behavior that threatens the safety of people or property, or has the potential to become violent, should be immediately reported to your supervisor, Human Resources or through the reporting channels of this Code. If confirmed, such actions will be grounds for immediate termination.

We all must report to work in condition to perform our duties, free from the influence of alcohol or illegal drugs. Alcohol and drug abuse can endanger the health, safety and security of our Employees and our customers, adversely affect the quality and effectiveness of our company operations and potentially harm fellow Employees, the communities we live in and Onto Innovation’s reputation. The use, possession, sale, purchase, distribution, manufacture or transfer of alcohol, illegal drugs, or unauthorized drugs is prohibited on Onto Innovation’s premises or work sites. No one at Onto Innovation or any of its contractors may report to work or perform any job duties while under the influence of or impaired by alcohol or drugs. We encourage Employees who may have an alcohol or drug problem to seek assistance through Onto Innovation’s Employee Assistance Program (EAP).

 

13.

Record-Keeping

Our records are our corporate memory, providing evidence of actions and decisions and containing data and information critical to the continuity of our business. Records consist of all forms of information created or received by Onto Innovation, whether originals or copies, regardless of media. Examples of Onto Innovation’s records include paper documents, e-mail, electronic files stored on disk, tape or any other medium (CD, DVD, USB data storage devices, etc.) that contains information about Onto Innovation or our business activities. All records are the property of Onto Innovation.

 

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Most of us participate to some extent in recording, processing, or analyzing financial or other information, or in the review and audit of these activities. These processes exist to assist in business decision-making and the evaluation of Onto Innovation’s performance by our Board and senior management. They are also necessary to ensure compliance with legal and other requirements pertaining to the retention of information and its disclosure to others, including to investors and regulators. Periodic audits may be conducted by the Onto Innovation’s outside legal counsel or at the direction of an appropriate company officer or department. All employees are required to cooperate fully with any such audits and to provide truthful and accurate responses to any request.

With the above in mind, Onto Innovation requires honest and accurate recording and reporting of information in order to make responsible business decisions. It is very important that everyone adhere to the highest ethical standards in generating and maintaining company record and that no one create or participate in the creation of (or falsification or alteration of) any Onto Innovation records which are intended to mislead anyone or conceal anything improper. For example, only the true and actual number of hours worked should be reported. Many of us regularly travel and file travel expense accounts, which must be documented and recorded accurately. If there is a question as to whether a certain expense is legitimate, ask your supervisor or management within the Finance department. Guidelines are available from the Finance Department as well as in the Employee Handbook which can be accessed via the Onto Innovation Intranet websites (http://rzone/ or https://nanometrics.sharepoint.com/sites/intranet).

All of Onto Innovation’s books, records, accounts and financial statements are confidential. They must be maintained in reasonable detail, must appropriately reflect Onto Innovation’s transactions and must conform both to applicable legal requirements and to Onto Innovation’s system of internal controls and audit procedures. Unrecorded or “off the books” funds or assets should not be maintained unless permitted by applicable law or regulation. In addition, any of us with financial responsibilities are subject to Onto Innovation’s Financial Code of Ethics.

Business records and communications often become public, and we should avoid exaggeration, derogatory remarks, guesswork, or inappropriate characterizations of people and companies that can be misunderstood. This applies equally to e-mail, internal memos, and formal reports. Records should always be retained or destroyed according to Onto Innovation’s record-retention policies. In accordance with those policies, in the event of litigation or governmental investigation, please consult with the General Counsel.

It is the Onto Innovation’s policy to promptly and fully investigate any incident of fraud or theft relating to the company. Onto Innovation will prosecute individuals engaged in fraud or theft to the fullest extent of the law.

 

14.

Confidentiality

Onto Innovation’s proprietary and confidential information is a valuable asset and as such must be used for Onto Innovation business purposes only.

In carrying out Onto Innovation’s business, Employees often learn confidential or proprietary information about our company, our customers, prospective customers, suppliers or other third parties. We must maintain the confidentiality of all confidential information entrusted to us by Onto Innovation or our customers, except when disclosure is authorized by the General Counsel or required by laws or regulations. Confidential information includes all nonpublic information that is learned, generated or acquired during our employment with Onto Innovation including, but not limited to:

 

   

Trade secrets

 

   

Undisclosed financial information and earnings reports

 

   

Confidential product performance information

 

   

New product offerings

 

   

Merger, acquisition, divestiture or business plans

 

   

Strategic product plans and roadmap

 

   

Procurement plans

 

   

Capital requirements and plans

 

   

Personnel information or organizational changes

 

   

Confidential technical data, product architectures and designs

 

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Customer names and contact information

 

   

Marketing, pricing or service strategies

 

   

Business negotiation and transaction information

 

   

Product costs and volumes

 

   

Supplier and subcontractor information

 

   

Proprietary computer software and source code

To be clear, confidential information includes any information that might be of use to competitors, or harmful to Onto Innovation or its customers, if disclosed. Thus, if you can answer “yes” to the questions below, the information is confidential and should be protected.

 

   

Is this information unknown to people outside Onto Innovation?

 

   

Would Onto Innovation be disadvantaged or harmed if others knew this information?

 

   

Would your project be jeopardized if the information was not held in confidence?

Keep in mind that if Onto Innovation is involved in litigation and/or other dispute-resolution proceedings, we are all prohibited from communicating with Onto Innovation’s adversaries without the express approval of the General Counsel. If there is any doubt as to whether certain information would be considered confidential information, consult with the General Counsel.

Once information is determined to qualify as confidential information, it must then be handled with care. The following guidelines are presented to assist in the handling and protection of confidential information:

 

   

Ensure that a nondisclosure agreement, approved by the Legal department, has been signed before providing any confidential information to any third party;

 

   

Limit access to confidential information, e.g., by limiting reproduction and distribution of confidential documents, to only those persons who have a genuine need to know;

 

   

Keep all confidential documents in secured areas; and

 

   

Place confidential labels or legends on such documents to indicate the degree of care that must be applied when handling and distributing to others.

Confidential Information should not be disclosed to (a) any third party who has not signed or is not covered by a nondisclosure agreement, or (b) any person inside Onto Innovation who does not have a need to know such information. Consistent with this, confidential or competitive information should not be discussed with our families, friends, acquaintances or others when in public areas such as elevators, restaurants and airplanes or in social situations or gatherings. Further, such information must not be disclosed on online bulletin boards, chat rooms, personal Web pages, blogs, or through any other form of social media (e.g., Facebook, Twitter, etc.) regardless of whether you use your own name or an alias. Materials that contain confidential information, such as memos, notebooks, computer disks and laptop computers, should be stored securely.

The obligation to preserve confidential information continues even after employment ends. The Board authorizes only the Chairman of the Board and others expressly selected to disclose information. None of us are authorized to make public disclosures unless we receive written authorization from the Chairman.

 

15.

Protection and Proper Use of Company Assets

Onto Innovation spends considerable resources to develop, maintain and protect the assets used in its business. As Employees of Onto Innovation, each of us is a steward of these assets and as such is responsible for protecting Onto Innovation’s physical assets, proprietary information, brand and reputation. This includes our work product (materials, designs, information, files, ideas, concepts, products or services developed as part of our work assignments or responsibilities) which belong solely and exclusively to Onto Innovation. They also include, but are not limited to, such things as electronic mail, computers,

 

15


communication systems, documents, equipment, facilities, information, Onto Innovation’s logo and name, materials and supplies. It is the responsibility of each of us to endeavor to protect Onto Innovation’s assets and ensure their efficient use as well as assist our company in its efforts to its control costs. Theft, carelessness, and waste have a direct impact on Onto Innovation’s profitability. We should treat Onto Innovation assets with the same care we would if they were our own. No Onto Innovation property (tangible or intangible) may be sold, loaned, used, given away or disposed of without written authorization from the department head with budgetary responsibility for the property. Any suspected incident of abuse, fraud or theft should be immediately reported to management for investigation. Onto Innovation equipment should not be used for non-company business, though incidental and reasonable personal use may be permitted, however, all equipment remains the property of Onto Innovation and no employees should assume that the email system, computer or cubicle is private or confidential. Subject to local laws, Onto Innovation may search and review any incoming or outgoing communications on all devices.

What constitutes misuse of Onto Innovation assets and resources? How do we know if personal use of Onto Innovation assets and resources crosses the line of reasonableness? The following is provided as examples of misuse and unreasonableness:

 

   

Use of Onto Innovation facilities for personal gain.

 

   

The excessive use of the telephone or facsimile long-distance for personal purposes.

 

   

The taking of office supplies or equipment for personal consumption or use at home, e.g., using Onto Innovation equipment to repair personal property.

 

   

The unauthorized copying of computer software programs.

 

   

Not paying the balance on company-issued credit card(s) after receiving reimbursement from Onto Innovation for your expenses.

In addition, the obligation to protect Onto Innovation’s assets includes its proprietary information. Proprietary information includes intellectual property such as trade secrets, patents, trademarks, and copyrights; business, marketing and service plans; engineering and manufacturing ideas, designs; databases; records; salary information and any unpublished financial data and reports. Onto Innovation proprietary information may be stored electronically on laptops, handheld devices, desktops, portable storage devices or in documents or verbal discussions. All of us are responsible for protecting the proprietary information in his or her possession. We all must endeavor to comply with all security policies and procedures including the use of passwords and prohibitions against removing information from our premises or those of our customers and the use of portable storage devices in some circumstances. Unauthorized use or distribution of any confidential or proprietary information would violate Onto Innovation policy. It could also be illegal and result in civil or even criminal penalties.

 

16.

Bribery and Payments to Government Personnel

The United States and many other countries have laws that prohibit bribery, kickbacks, and other improper payments. No Onto Innovation Employee, agent, or independent contractor acting on our behalf may offer or provide bribes or other improper benefits in order to obtain business or an unfair advantage. A bribe is defined as directly or indirectly offering anything of value (e.g., cash, presents, meals, entertainment, travel and lodging, personal services, donations, favors, business opportunities, offers of employment, or other promises) to influence or induce action, or to secure an improper advantage. Anticorruption laws, such as the U.S. Foreign Corrupt Practices Act, prohibit giving and/or offering money or anything of value, directly or indirectly, to a foreign governmental official, agency, political party, party official or candidate under any circumstances which appears that such items were offered or given to induce the recipient to give Onto Innovation business, purchase Onto Innovation’s products or otherwise benefit Onto Innovation’s business in their country. It is strictly prohibited for anyone at Onto Innovation to make illegal payments to government officials of any country or any other form of commercial bribery.

In addition, the U.S. government has a number of laws and regulations regarding business gratuities which may be accepted by U.S. government personnel. The promise, offer or delivery to an official or employee of the U.S. government of a gift, favor or other gratuity in violation of these rules would not only violate Onto

 

16


Innovation policy but could also be a criminal offense. State and local governments, as well as foreign governments, may have similar rules. These policies can be found in Onto Innovation’s Foreign Corrupt Practices Policy, a copy of which can be found on the Onto Innovation Intranet websites (http://rzone/ or https://nanometrics.sharepoint.com/sites/intranet) or provided upon request. The General Counsel can also provide guidance in this area.

Finally, in dealing with our customers, we must all avoid participating in bribery and kickbacks, or even the appearance of them, in all of our business dealings. Kickbacks are agreements to return a sum of money to another party in exchange for making or arranging a business transaction. Even in locations where kickbacks may not be, technically speaking, illegal, it is absolutely prohibited by Onto Innovation policy. Violations of any of the above can subject you and Onto Innovation to severe penalties and damage our public reputation.

 

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Exhibit 14.2

ONTO INNOVATION

FINANCIAL INFORMATION INTEGRITY POLICY

As a public company, the integrity of the financial information of Onto Innovation Inc. (“Onto Innovation”) is paramount. It guides the decisions of the Board of Directors and is relied upon by our shareholders and the financial markets.

Onto Innovation has a Code of Business Conduct and Ethics applicable to all employees, executive officers and directors of Onto Innovation. The Chief Executive Officer (“CEO”) and all Onto Innovation senior financial officers, including the Chief Financial Officer (“CFO”) and Controller (collectively, the “Financial Officers”), are bound by the provisions set forth therein relating to ethical conduct, conflicts of interest and compliance with law. In addition to the Code of Business Conduct and Ethics, the Financial Officers are subject to the additional specific policies set forth in this Financial Information Integrity Policy (the “Policy”):

 

1.

The Financial Officers are responsible for full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by Onto Innovation with the Securities and Exchange Commission (“SEC”). Accordingly, it is the responsibility of the Financial Officers promptly to bring to the attention of the Onto Innovation Board of Directors Audit Committee (“Audit Committee”) any material information of which he or she may become aware that affects the disclosures made by Onto Innovation in its public filings. Furthermore, such Financial Officers shall otherwise assist the Audit Committee in fulfilling its responsibilities as specified in Onto Innovation’s financial reporting and disclosure, controls and procedures policies as those policies are documented.

 

2.

Each Financial Officer shall promptly bring to the attention of the Audit Committee any information he or she may have concerning:

 

  (a)

Significant deficiencies in the design or operation of internal controls which could adversely affect Onto Innovation’s ability to record, process, summarize and report financial data, or

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a role in Onto Innovation’s financial reporting, disclosures or internal controls.

 

3.

Each Financial Officer shall promptly bring to the attention of the General Counsel and to the Audit Committee any information he or she may have concerning:

 

  (a)

Any violation of Onto Innovation’s Code of Business Conduct and Ethics or this Policy. This includes actual or apparent conflicts of interest, either personal or professional, involving management or other employees who have a significant role in Onto Innovation’s financial reporting, disclosures or internal controls.

 

  (b)

Evidence of a material violation of securities or other laws, rules or regulations applicable to Onto Innovation and the operation of its business, by Onto Innovation or any agent thereof.

In addition to the foregoing, any employee who has a reasonable concern about:

 

   

Onto Innovation’s financial conduct;

 

   

questionable accounting, internal accounting controls or auditing matters; or

 

   

the possible reporting of fraudulent financial information to our shareholders, the government or the financial markets;

 

Financial Information Integrity Policy    Page 1


FINANCIAL INFORMATION INTEGRITY POLICY CONTINUED

 

may communicate that concern, free of any threat of harassment, discrimination or retaliation, directly to the Audit Committee or the Chief Financial Officer. Such communications may be confidential or anonymous and may be:

 

   

e-mailed to codeofethics@ontoninnovation.com;

 

   

submitted in writing to Onto Innovation’s General Counsel or its Chief Financial Officer; or

 

   

reported by phone via the confidential, global, toll-free phone number dedicated to such reports that is listed on the Onto Innovation Intranet website.

All such concerns will be taken seriously and will be forwarded and simultaneously reviewed and addressed by the Audit Committee in the same way that other concerns are addressed and documented by Onto Innovation. All complaints under this policy will be promptly and thoroughly investigated and all information disclosed during the course of the investigation will remain confidential, except as necessary to conduct the investigation and take any remedial action, in accordance with applicable law. All employees and supervisors have a duty to cooperate in the investigation of reports of any conduct covered by this policy. In addition, an employee will be subject to disciplinary action, including termination of employment, if the employee fails to cooperate in an investigation, or deliberately provides false information during an investigation. If appropriate, such concerns addressed to the Audit Committee will be reported to the Board of Directors on a quarterly basis. The Audit Committee shall determine, or designate appropriate persons to determine, actions to be taken and may direct special treatment, including the retention of outside advisors or counsel, as appropriate, for concerns addressed to them. The specific action taken in any particular case depends on the nature and gravity of the conduct or circumstances reported, and the quality of the information provided. Such actions shall be reasonably designed to deter wrongdoing and to promote accountability for adherence to the Code of Business Conduct and Ethics and to this Policy. If, at the conclusion of its investigation, Onto Innovation determines that a violation of policy has occurred, Onto Innovation will take remedial action commensurate with the severity of the offense. This action shall include correction of the matters, reasonable and necessary steps to prevent any further violations of policy and written notices to the individual(s) involved that the Board has determined that there has been a violation. Further, the Board may take disciplinary action against the accused party including censure by the Board, demotion or re-assignment of the individual involved, suspension with or without pay or benefits (as determined by the Board) and/or termination of the individual’s employment. In determining what action is appropriate in a particular case, the Board of Directors or such designee shall take into account all relevant information, including the nature and severity of the violation, whether the violation was a single occurrence or repeated occurrences, whether the violation appears to have been intentional or inadvertent, whether the individual in question had been advised prior to the violation as to the proper course of action and whether or not the individual in question had committed other violations in the past.

Onto Innovation’s Code of Business Conduct and Ethics prohibits any employee from retaliating or taking any adverse action against anyone for raising or helping to resolve an integrity concern. If you believe that you have been subject to discrimination, retaliation or harassment for having made a report under this policy, you must immediately report those facts to your supervisor or the Human Resources Department, or both. If you have reason to believe that all those individuals are involved in these matters you should report those facts to the Audit Committee of the Board of Directors. It is imperative that you bring the matter(s) to Onto Innovation’s attention promptly so that any concern of discrimination, retaliation or harassment can be investigated and addressed promptly and appropriately in accordance with company policy.

Additional Enforcement Information

In addition to Onto Innovation’s internal complaint procedure, employees should also be aware that certain federal and state law enforcement agencies are authorized to review questionable accounting or auditing matters, or potentially fraudulent reports of financial information. Onto Innovation’s policies and practices have been developed as a guide to our legal and ethical responsibilities to achieve and maintain

 

Financial Information Integrity Policy    Page 2


FINANCIAL INFORMATION INTEGRITY POLICY CONTINUED

 

the highest business standards. Conduct which violates Onto Innovation’s policies will be viewed as unacceptable under the terms of employment at Onto Innovation. Certain violations of Onto Innovation’s policies and practices could even subject Onto Innovation and/or the individual employee(s) involved to civil and/or criminal penalties. Before issues or behavior can rise to that level, employees are encouraged to report questionable accounting or auditing matters, suspicion of fraudulent financial information, or discrimination, retaliation or harassment related to such reports. Nothing in this policy is intended to prevent an employee from reporting information to the appropriate agency when the employee has reasonable cause to believe that the violation of a federal or state statute or regulation has occurred.

Waivers of this Policy

Any waiver of this Policy will be disclosed as required by applicable law or regulation, including on Form 8-K or Onto Innovation’s website, as appropriate.

Modification

Onto Innovation can modify this policy unilaterally at any time without notice. Modification may be necessary, among other reasons, to maintain compliance with State and Federal regulations and/or accommodate organizational changes within Onto Innovation.

 

Financial Information Integrity Policy    Page 3

Exhibit 99.1

 

LOGO

Onto Innovation Merger Successfully Completed,

Combining Nanometrics and Rudolph Technologies

Wilmington, Mass., October 28, 2019Onto Innovation Inc. (NYSE: ONTO) today announced the successful completion on October 25, 2019 of the previously announced merger of equals between Nanometrics Incorporated and Rudolph Technologies, Inc. Headquartered in Wilmington, Massachusetts, Onto Innovation is expected to be the fourth largest semiconductor capital equipment supplier by revenue in the U.S. and a top 15 semiconductor equipment company by revenue worldwide, based on Gartner’s most recent semiconductor wafer fab equipment market share report, released in April 2019.

Highlights

 

   

Global semiconductor equipment and software technology leader with a broad portfolio of technologies for wafer manufacturing, front-end process control, and advanced packaging.

 

   

Experienced board and management team with decades of semiconductor industry experience.

 

   

Completed merger of equals transaction with complementary product lines in leading edge front-end wafer fabs.

 

   

Strong balance sheet with over $300 million in cash, cash equivalents and marketable securities at closing.

Shares of Nanometrics common stock, which were traded on Nasdaq under the ticker “NANO”, will begin trading today on the New York Stock Exchange under the ticker “ONTO”. Rudolph Technologies (NYSE: RTEC) shares ceased trading on the New York Stock Exchange as of market close on October 25, 2019 and have converted into 0.8042 shares of Onto Innovation common stock for each share of Rudolph common stock.

Onto Innovation is scheduled to announce Nanometrics’ and Rudolph’s respective earnings results for the 2019 third quarter on November 7, 2019 at 4:30 p.m. Eastern Time.


Board of Directors

Onto Innovation’s new Board of Directors consists of 12 members with a deep understanding of Nanometrics’ and Rudolph’s businesses, a diverse mix of background, skills and experience, and a track record of driving long-term shareholder value. The Onto Innovation Board members, drawn equally from Nanometrics and Rudolph, are:

 

   

Christopher A. Seams – Chairman, former CEO, Deca Technologies

 

   

Michael P. Plisinski – CEO, Onto Innovation

 

   

Jeffrey A. Aukerman – former Partner, Deloitte and Touche

 

   

Leo Berlinghieri – former CEO and President, MKS Instruments

 

   

Edward J. Brown – former CEO, Cymer Light Source

 

   

Vita Cassese – CEO, Mardon Management Advisors

 

   

Robert G. Deuster – former CEO, Collectors Universe

 

   

David B. Miller – former President, DuPont Electronics & Communications

 

   

Bruce C. Rhine – former CEO, Accent Optical Technologies

 

   

Timothy J. Stultz – former CEO and President, Nanometrics

 

   

Christine A. Tsingos – former EVP and CFO, Bio-Rad Laboratories

 

   

John R. Whitten – former CFO and Treasurer, Applied Industrial Technologies

Structure and Leadership

The Onto Innovation management team will be led by Mike Plisinski, CEO, and Steve Roth, CFO. The new organization, like the Board of Directors, is a combination of Nanometrics and Rudolph executives that will manage the company’s business units and corporate functions. The center for metrology innovation will be located in Milpitas, CA, with the inspection innovation headquarters remaining in Bloomington, MN. Software and lithography innovation centers will be located in Wilmington, MA.

Mike Plisinski stated, “We believe we’ve created an agile technology provider with the scale, resources and capabilities to provide innovative and rapidly fielded solutions to address our customers’ critical process needs. Each member of our Board and leadership team brings decades of experience, and I look forward to working with them to achieve the anticipated cost and revenue synergies that we expect to create significant value for our shareholders.” He continued, “Onto Innovation will provide a broader scale that can support customers with greater resources. The broader reach of our product portfolio will also allow collaboration with customers across a wider range of process challenges, delivering complementary technologies and core competencies to accelerate new innovations.”

About Onto Innovation Inc.

Onto Innovation is a leader in process control, combining global scale with an expanded portfolio of leading-edge technologies that include: 3D metrology spanning the chip from nanometer-scale transistors to micron-level die-interconnects; macro defect inspection of wafers and packages; metal interconnect composition; factory analytics; and lithography for advanced semiconductor packaging. Our breadth of offerings across the entire semiconductor value chain help our customers solve their most difficult yield,


device performance, quality, and reliability issues. Onto Innovation strives to optimize customers’ critical path of progress by making them smarter, faster and more efficient. Headquartered in Wilmington, Massachusetts, Onto Innovation supports customers with a worldwide sales and service organization. Additional information can be found at www.ontoinnovation.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe,” “continue,” “could,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, which are only predictions that involve known and unknown risks and uncertainties, many of which are beyond the control of Onto Innovation, include, but are not limited to, statements regarding: Onto Innovation’s expected market position; Onto Innovation’s scale, resources, capabilities, technologies, product portfolio, solutions and abilities; Onto Innovation’s ability to achieve anticipated cost and revenue synergies; and Onto Innovation’s ability to create value for its shareholders. Risks and uncertainties that could cause actual results to differ from these forward-looking statements include: (i) weakening of global and/or regional economic conditions, generally or specifically in the semiconductor industry, which could decrease the demand for Onto Innovation’s products and solutions; (ii) the ability of Onto Innovation to meet rapid demand shifts; (iii) the ability of Onto Innovation to continue technological innovation and introduce new products to meet customers’ rapidly changing requirements; (iv) Onto Innovation’s concentrated customer base; (v) the ability of Onto Innovation to identify, effect and integrate acquisitions, joint ventures or other transactions; (vi) the ability of Onto Innovation to protect and enforce intellectual property rights; (vii) operational, political and legal risks of Onto Innovation’s international operations; (viii) the increasing complexity of certain manufacturing processes; (ix) raw material shortages and price increases; (x) changes in government regulations of the countries in which Onto Innovation operates; (xi) the fluctuation of currency exchange rates; (xii) fluctuations in the market price of Onto Innovation’s common stock; (xiii) the ability of Onto Innovation to integrate the businesses of Rudolph and Nanometrics promptly and effectively and to achieve the anticipated synergies and value-creation contemplated by the merger of equals transaction (the “Transaction”); (xiv) unanticipated difficulties or expenditures relating to the Transaction; (xv) the response of business partners and retention as a result of the Transaction; (xvi) the diversion of management time in connection with the Transaction; (xvii) the effect of litigation related to the Transaction; and (xviii) other factors that may be disclosed in Onto Innovation’s filings with the Securities and Exchange Commission. Onto Innovation does not assume any obligation to update any forward-looking statements or information to reflect events or circumstances after the date of this press release, or to reflect the


occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement.

# # #

Contacts:

Investor Relations:

Michael Sheaffer, +1-978-253-6273

Mike.Sheaffer@OntoInnovation.com