Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT (the “Agreement” or “Employment Agreement”) dated August 23, 2017 (the “Effective
Date”) between Ed Lang (“Employee”) and Nuverra Environmental Solutions, Inc. (the “Company”) (each of the Employee and the Company, a “Party,” and collectively, the “Parties”) provides: 

WHEREAS, the Company desires to employ Employee, and Employee desires to be employed by the Company; 

NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 
 1.    Previous Agreement
Superseded. Any previous agreement or understanding, whether written or oral, relating to your employment by the Company is hereby superseded, replaced in its entirety by this Agreement and considered null and void. 

2.    Definitions. 

a.    “Board of Directors” means the Board of Directors of the Company. 

b.    “Cause” means any one (1) or more of the following: 

(i)    Employee’s conviction of, or plea of guilty or nolo contendere to, any felony or a crime
involving embezzlement, conversion of property or moral turpitude; 
 (ii)    A finding by a majority of
the Board of Directors of Employee’s fraud, embezzlement or conversion of the Company’s property or Employee’s material and intentional unauthorized use, misappropriation, distribution or diversion of tangible or intangible asset or
corporate opportunity of the Company; 
 (iii)    A finding by a majority of the Board of Directors of
Employee’s knowing breach of any of Employee’s fiduciary duties to any company in the Company Group or the Company’s stockholders or making of an intentional misrepresentation or omission which breach, misrepresentation or omission
would reasonably be expected to have a material adverse effect on the business relationship, the business, properties, assets, operations, condition (financial or other) or prospects of any company in the Company Group; 

(iv)    Employee’s alcohol or substance abuse, which materially interferes with Employee’s
ability to discharge the duties, responsibilities and obligations prescribed by this Agreement as determined by a majority of the Board of Directors; 

(v)    Employee’s material and knowing failure to observe or comply with law applicable to the
business of the Company as an officer or employee of the Company which would reasonably be expected to have a material adverse effect on the business relationship, the business, properties, assets, operations, condition (financial or other), or
prospects of any company in the Company Group as determined by a majority of the Board of Directors; 

 (vi)    Employee’s gross insubordination, negligence,
recklessness or willful misconduct relating to the business or affairs of the Company that results in material harm to the Company or its operation, properties, reputation, goodwill or business relationships as determined by a majority of the Board
of Directors, 
 provided that (x) any finding or determination made by the Board of Directors concerning the existence of Cause must be made in good
faith and not for purposes of evading the Company’s obligations hereunder; and (y) a finding or determination of Cause by the Board of Directors may not be made unless, prior to determining that Cause exists, the Employee shall be given
written notice stating in reasonable detail the facts and circumstances deemed by the Company to constitute Cause, and thirty (30) days from receipt of such notice Employee has failed to cure the facts and circumstances set forth in such
notice. 
 c.    “Change in Control” shall have the meaning set forth in the MIP. Notwithstanding anything to
the contrary herein, the fact that a transaction or event is defined as a Change in Control for purposes of this Agreement shall not evidence or infer that the transaction or event constitutes a change of or in control for purposes of, including but
not limited to, any determination or definition of any licensing agency or for determining the duties of the Board of Directors under applicable corporate law. 

d.    “COBRA” means Section 4980B of the Code and Part 6 of Subtitle B of Title I of the Employee
Retirement Income Security Act of 1974, as amended, and any similar state law. 
 e.    “Code” means the
Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 
 f.    “Company
Group” shall mean the entities listed on Schedule 1. 
 g.    “Compete” shall mean to directly or
indirectly own, operate, manage, join, control, be employed by, be a consultant to, invest in, or become a director, officer, agent, partner, member, independent contractor or shareholder of any Competitive Business, as defined below. As used in
this Agreement, “Compete” does not include purely passive investments in any publicly traded company so long as Employee does not directly or indirectly own, acquire or obtain options to acquire, 5% or more of any class of shares in such
company. 
 h.    “Competitive Business” means any environmental solutions business conducted in connection
with oil or gas exploration or production which provides transportation, treatment, recycling, or disposal, relating to water, wastewater, drilling mud, drilling wastes, or related products or services as advertised on the Company’s website
from time to time, and any other related services the Company plans to provide to the Company’s customers as demonstrated in the Company’s internal strategic plans or other internal planning-related documentation or in the event such
planned services have been presented to or considered by the Company’s Board of Directors or the Company’s officers, unless the Board of Directors or officer, as applicable, have abandoned or made a determination not to pursue such plans.

 i.    “Confidential Information” means any confidential information including, without limitation, any
study, data, calculations, software, storage media or other compilation of information, patent, patent application, copyright, “know-how”, trade secrets, customer or prospective customer lists or
information, details of client, consultant, vendor, supplier or manufacturer contracts, pricing policies, operational methods, marketing plans or strategies, 

 
product development techniques or plans, business acquisition plans or any portion or phase of any scientific or technical information, ideas, discoveries, designs, computer programs (including
source or object codes), processes, procedures, formulae, improvements or other proprietary or intellectual property of any company in the Company Group, whether or not in written or tangible form, and whether or not registered, and including all
files, records, manuals, books, catalogues, memoranda, notes, summaries, plans, reports, records, documents and other evidence thereof. Notwithstanding the foregoing, the term Confidential Information does not include, and there shall be no
obligation hereunder with respect to, information that is or becomes generally available to the public other than as a result of a disclosure by the Employee not permissible hereunder. 

j.    “Disability” means Employee is either: 

(i)    determined to be totally disabled by the Social Security Administration; or 

(ii)    determined to be disabled pursuant to the Company’s disability plans for a period of at least
six (6) months in any twelve (12) month period. 
 k.    “Good Reason,” when used with reference to
a voluntary termination by Employee of Employee’s employment with the Company, shall mean any of the following conditions, provided Employee provides the Company with actual notice of the condition giving rise to the termination within sixty
(60) days of Employee’s knowledge of the initial existence of the condition, provides the Company with the opportunity to cure within thirty (30) days of the notice, and terminates employment within one hundred twenty days
(120) of Employee’s first obtaining knowledge of the initial existence of the condition: 

(i)    A material diminution in Employee’s authority, duties or responsibilities; provided that, a
material diminution of Employee’s authority, duties or responsibilities shall be deemed to have occurred if Employee ceases to have such authorities, duties or responsibilities with respect to the entity which is the ultimate parent entity of
the Company Group following a Change in Control; or 
 (ii)    A requirement that Employee report to any
person or entity other than the Board of Directors or the CEO of the Company; or 
 (iii)    A material
change in the geographic location at which the Employee must perform the services, including a change in the location of the Company’s principal office which requires Employee’s ordinary commuting distance to increase by fifty (50) or
more miles; 
 (iv)    The Company’s delivery of a notice of nonrenewal of the Term of Employment
pursuant to Section 2.q. below; or 
 (v)    Any other action or inaction that constitutes a
material breach by the Company of this Agreement and such breach is not cured as set forth above. 
 l.    
“MIP” means that certain management incentive plan adopted by the Company in 2017 following the approval of its reorganization under Chapter 11 of the Bankruptcy Code. 

 m.    “Market” means the United States. If a court, arbitrator or
arbitration panel finds that this definition of Market is unreasonable, then the Market will be considered to mean all states in which the Company has provided services to a customer. If a court, arbitrator or arbitration panel finds the definition
of Market contained in the preceding sentence is unreasonable, then the Market shall mean all states in which the Company has provided services to a customer during the twelve (12) month period prior to the Termination Date. 

n.    “Position” means the particular position of Executive Vice President and Chief Financial Officer. 

o.    “Regulations” means any laws, ordinances, regulations or rules of any governmental, regulatory or
administrative body, agent or authority, any court or judicial authority, or any public, private or industry regulatory authority. 

p.     “Specified Employee” means any Company employee that the Company determines is a Specified Employee
within the meaning of Section 409A of the Code and the regulatory and other guidance promulgated thereunder (“Code Section 409A”). The Company shall determine whether an employee is a Specified Employee by applying reasonable,
objectively determinable identification procedures compliant with Code Section 409A. 
 q.    “Term of
Employment” means the period commencing on the Effective Date and ending on the earlier of (i) a termination of employment pursuant to the terms of this Agreement and (ii) the third anniversary of the Effective Date (the “Initial
Term”); provided, however, that the period of the Employee’s employment pursuant to this Agreement shall be automatically extended for successive one-year periods
thereafter (each, a “Renewal Term”), in each case unless either Party hereto provides the other Party hereto with written notice that such period shall not be so extended at least three (3) months in advance of the expiration of the
Initial Term or the then-current Renewal Term, as applicable. 
 r.    “Termination Date” shall mean the last
day of Employee’s employment with the Company. 
 3.    Nature of Employment. Subject to the terms of
this Agreement, the Company hereby agrees to employ Employee in the Position, and Employee hereby agrees to accept such employment in the Position, for the Term of Employment under this Agreement. 

4.    Extent of Employment. While employed: 

a.    Employee shall perform the duties of the Position faithfully and to the best of Employee’s ability at the
principal offices of the Company or in such locations as may be designated from time to time by the Company or as may be necessary to fulfill the duties of the Position, except for reasonable travel in connection with the Company’s business
incident to the performance of Employee’s duties. Such duties shall include, but not be limited to, such duties as may be reasonably specified from time to time by the Board of Directors or the CEO of the Company. Employee shall report to the
CEO of the Company, or as otherwise directed by the Board of Directors. 
 b.    Employee shall abide by the policies,
rules, customs, and usages as established by or existing at the Company. 

 c.    Employee shall devote all of Employee’s business time, energy and
skill as may be reasonably necessary for the performance of the duties, responsibilities, and obligations of the Position. With the approval of the CEO or the Board of Directors, which shall not be unreasonably withheld, Employee may serve
(i) in any capacity with any civic, educational or charitable organization and/or (ii) as a member of the board of directors of no more than two (2) companies (other than the Company), in each case provided such services do not
interfere with Employee’s obligations to the Company. 
 d.    Employee shall not knowingly breach or violate any
Regulations or rules of any governmental or regulatory body in any material respect and shall not act in any manner which might reasonably be expected to have a material adverse effect on the ongoing business, properties, assets, operations,
condition (financial or other), business relationships or prospects of any company in the Company Group. 

e.    Employee shall not commit or engage in any conduct, through action or omission, which would constitute any of the
offenses set forth in the definition of “Cause” under this Agreement. 
 5.    Compensation.
While Employee is employed by the Company, the Company shall pay Employee: 
 a.    Base Salary. A base salary, paid in
accordance with the Company’s normal payroll schedule, at a rate of $350,000 per annum (the “Base Salary”). The Board of Directors or its Compensation Committee, as applicable, shall annually, and in its sole discretion, determine
whether the Base Salary should be increased and, if so, in what amount. 
 b.    Incentive Compensation. 

(i)    Employee shall be eligible to participate in such incentive compensation plans that have been approved or may in
the future be approved by the shareholders of the Company and/or the Board of Directors, as applicable, and administered by the Board of Directors. Employee’s participation level in such plans (determined on a percentage of salary basis) shall
not be less than the participation level of other named executive officers of the Company other than the CEO (subject to any applicable performance and/or vesting criteria). 

(ii)    Employee shall be eligible to participate in the MIP on terms and conditions determined at the discretion of the
Board of Directors. In connection with a grant of equity or equity-based compensation under the MIP, the Employee shall enter into an award agreement in a reasonable form to be provided by the Company that shall contain the terms and conditions of
such award, consistent with the terms of the MIP. 
 c.    Clawback. The provisions of Section 5.b and 5.c. shall
be subject to any clawback policy required by applicable Regulations of the Securities and Exchange Commission and adopted by the Company in accordance with such Regulations. 

6.    Reimbursement of Expenses. While Employee is employed, the Company shall reimburse Employee for
reasonably documented travel expenses, entertainment and other expenses reasonably incurred by Employee in connection with the performance of the duties of the Position and, in each case, according to the reasonable rules, policies, customs and
procedures promulgated by the Company from time to time. All reimbursements shall be made within thirty (30) days of Employee’s submission of any reasonably documented expense 

 
reimbursement claim, but no later than the last day of the year immediately following the year in which the expense was incurred. The amount of expenses eligible for reimbursement provided during
one (1) taxable year shall not affect the amount of expenses eligible for reimbursement or in-kind benefits provided during any other taxable year. Employee may not elect to receive cash or any other
benefit in lieu of the reimbursements provided by this Section. 
 7.    Benefits. While Employee is
employed, the Employee shall be entitled to perquisites and benefits established from time to time, at the sole discretion of the Board of Directors for the Position, including without limitation, health, short and long term disability, pension and
life insurance benefits consistent with past practice, or as increased from time to time; provided that the perquisites and benefits provided to Employee shall be at least substantially equal to those provided to any other officer of the Company.

 8.    Termination of Employment for Cause or without Good Reason. At any time during the Term of
Employment, the Company may terminate Employee’s employment for Cause effective upon the giving to Employee a written notice of termination. If Employee’s employment is terminated for Cause or Employee voluntarily terminates
Employee’s employment without Good Reason, Employee shall be entitled to: 
 a.    Payment of accrued and unpaid
base salary and unused vacation through the Termination Date in accordance with applicable law; 
 b.    Reimbursement
for expenses incurred through the Termination Date as set forth in Section 6. 
 9.    Termination of
Employment without Cause, for Good Reason, upon Change of Control, or due to the Death or Disability of Employee. During the Term of Employment, the Company may terminate Employee’s employment without Cause and without providing notice
to Employee, and Employee may terminate Employee’s employment with the Company for Good Reason. Employee’s death or Disability shall cause a termination of Employee’s employment. 

a.     Termination Without Cause or For Good Reason — No Change of Control. During the Term of Employment, if
Employee is terminated by the Company without Cause or if Employee terminates Employee’s employment for Good Reason, either of which occurs without a Change of Control, Employee shall be entitled to the following items within sixty
(60) days following the Termination Date (except as provided in Section 9.a.(iii) below) so long as Employee has signed and not revoked the Release described in Section 12 below during such sixty (60) day period (provided,
however, consistent with Section 12, if the sixty (60) day period begins in one calendar year and ends in a second calendar year, payments will be made in the second calendar year): 

(i)    The Company shall provide the items set forth in Section 8.a. and 8.b. above. 

(ii)    The Company shall pay to Employee a lump sum severance pay amount equal to the sum of (aa) twelve
(12) months of the Base Salary in effect immediately prior to the Termination Date, and (bb) twelve (12) months of the Company’s COBRA premiums in effect on the Termination Date (based on Employee’s coverage status under the
Company’s group health plan on the Termination Date). 

 (iii)    The Company shall pay Employee a lump sum amount
equal to at least one hundred percent (100%) of the bonus or bonuses attributable to the fiscal year during which the Termination Date occurs if such bonus or bonuses would have been earned and paid but for the termination of Employee’s
employment. Notwithstanding the requirement stated in this Section 9.a. above to provide amounts within sixty (60) days following the Termination Date, the payment required under this Section 9.a.(iii) shall be paid to Employee on the
same date as such fiscal year bonuses are paid to the Company’s active employees in the next year, which is the date Employee would have received such bonus payment had Employee remained continuously employed by the Company. 

(iv)    Acceleration in full, effective as of the Termination Date, of the vesting and or exercisability of
all then outstanding equity awards (excluding such portion of any equity awards (A) whose vesting is based on performance-based criteria and (B) that is intended to constitute “qualified performance-based compensation” within the
meaning of Section 162(m) of the Code (other than options granted at fair market value) (each, a “Performance-Based Award”)) held by Employee. The time-based vesting and exercisability (if any) of all Performance-Based Awards held by
Employee shall accelerate effective as of the Termination Date, and any Performance-Based Award shall become vested and exercisable only if the applicable performance-based criteria are satisfied at the end of the applicable period relating to such
award, at which time such Performance-Based Award shall become fully vested and exercisable. The term of any option that is treated as a Performance-Based Award shall include any period referred to in the preceding sentence during which the option
shall not be terminated. Any Performance-Based Award for which the performance criteria are not satisfied within the applicable performance period shall terminate at the end of such period. 

(v)    Employee’s participation in and/or coverage under all other employee benefit plans, programs or
arrangements sponsored or maintained by the Company shall cease to be effective as of the Termination Date, unless such benefit, program or plan is inalienable under the law. 

b.    Termination Without Cause or For Good Reason — Change of Control. During the Term of Employment, if Employee is
terminated by the Company without Cause or if Employee terminates Employee’s employment for Good Reason, either of which occurs within twelve (12) months after a Change of Control, or if Employee is terminated by the Company without Cause
within six (6) months prior to a Change of Control if such termination was in contemplation of such Change in Control, Employee shall be entitled to the following items within sixty (60) days following the Termination Date so long as
Employee has signed and not revoked the release described in Section 12 below during such sixty (60) day period (provided, however, consistent with Section 12, if the sixty (60) day period begins in one calendar year and ends in
a second calendar year, payments will be made in the second calendar year): 
 (i)    Except as provided
in Section 9.b.(iii) and (iv), all of the payments and benefits as set forth in Section 9.a. above; 

(ii)    An additional lump sum severance payment equal to the sum of (aa) twelve (12) months of the
Base Salary in effect immediately prior to the Termination Date and (bb) twelve (12) months of the Company’s COBRA premiums in effect on the Termination Date (based on Employee’s coverage status under the Company’s group health
plan on the Termination Date); 

 (iii)    In lieu of payment pursuant to
Section 9.a.(iii), a lump sum payment equal to one hundred percent (100%) of all bonuses attributable to the fiscal year during which the Termination Date occurs at target; and 

(iv)    Acceleration in full, effective as of the Termination Date, of all Performance-Based Awards
regardless of whether or not such Performance-Based Awards would become vested and exercisable pursuant to Section 9.a.(iv). 

c.    Disability. Unless otherwise prohibited by law, Employee’s employment with the Company will terminate on the
effective date of Employee’s Disability. The effective date of Employee’s Disability, which will be Employee’s Termination Date for purposes of this Section 9.c., is the last day of the third (3rd) month on which Employee receives disability benefits pursuant to a Company sponsored disability plan or the day on which Employee is determined to be totally disabled by the Social Security
Administration. Employee shall be entitled to the following items within sixty (60) days following the Termination Date of Employee’s employment termination due to Disability, so long as Employee has signed and not revoked the release
described in Section 12 below during such sixty (60) day period ( provided, however, consistent with Section 12, if the sixty (60) day period begins in one calendar year and ends in a second calendar year, payments will be made
in the second calendar year): 
 (i)    All the payments and benefits set forth in Section 9.a.(i),
(iv) and (v); and 
 (ii)    Disability benefits under the applicable plan or practice. 

d.    Death. If Employee dies during the Term of Employment , Employee’s estate shall be entitled to the following
items: 
 (i)    All the payments and benefits set forth in Section 9.a.(i), (iv) and (v); and 

(ii)    Employee’s dependents, if any, who are covered by the Company’s group health plan at the
time of Employee’s death shall be eligible for the COBRA continuation coverage. 
 e.    If any payment or benefit
Employee would receive under this Agreement, when combined with any other payment or benefit Employee receives pursuant to the termination of Employee’s employment with the Company (“Payment”), would: 

(i)    constitute a “parachute payment” within the meaning of Section 280G of the Code, and

 (ii)    but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then such Payment shall be whichever of the following amounts, taking into account the applicable federal, state and local employment taxes, income taxes, and the Excise Tax, results in Employee’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax: 

(a)    the full amount of such Payment; or 

 (b)    such lesser amount (with cash payments being reduced)
as would result in no portion of the Payment being subject to the Excise Tax. 
 (iii)    All
determinations required to be made under this Section 9.f., including whether and to what extent the Payments shall be reduced and the assumptions to be utilized in arriving at such determination, shall be made by a national independent
accounting firm registered with the Public Company Accounting Oversight Board as will be designated by the Company (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting calculations both to Employee and the Company
at such time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. For purposes of making the calculations required by this Section 9.f., the Accounting Firm may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of Sections 280G and 4999 of the Code. 

(iv)    To the extent any reduction of the Payments becomes necessary pursuant to this Section 9.e.,
the reduction first shall apply to amounts payable pursuant to this Section 9, or pursuant to any other arrangement, that are not subject to Section 409A of the Code. If the amount of the necessary reduction exceeds the amount of the
payments described in the preceding sentence, the reduction will then apply on a proportional basis to amounts payable to Employee that are subject to the requirements of Section 409A of the Code. 

f.    Notwithstanding any other provision of this Agreement to the contrary, neither the time nor the schedule of any
payment under this Agreement may be accelerated or subject to a further deferral except as provided in 26 C.F.R. § 1.409A-3(j)(4) or to the extent such payment constitutes a “short-term
deferral” within the meaning of Code Section 409A. 
 g.    The Employee does not have any right to make any
election regarding the time or form of any payment due under this Agreement. 
 h.    If the Company fails to make any
payment under this Agreement, either intentionally or unintentionally, within the time period specified in this Agreement, but the payment is made within the same calendar year, such payment will be treated as made within the time period specified
in the Agreement pursuant to 26 C.F.R. § 1.409A-3(d). In addition, if a payment is not made due to a dispute with respect to such payment, the payment may be delayed in accordance with 26 C.F.R. § 1.409A-3(g). 
 i.    For purposes of this Agreement, Employee’s Termination Date
shall be the date on which Employee incurs a “Separation from Service.” For this purpose, the term “Separation from Service” means either (1) the termination of Employee’s employment with the Company and all affiliates,
or (2) a permanent reduction in the level of bona fide services that Employee provides to the Company and all affiliates to an amount that is 20% or less of the average level of bona fide services that Employee provided to the Company and all
affiliates in the immediately preceding thirty-six (36) months, with the level of bona fide services to be calculated in accordance with regulations issued by the United States Treasury Department
pursuant to Section 409A of the Code. 
 Employee’s relationship is treated as continuing while Employee is on military leave,
sick leave, or other bona fide leave of absence (if the period of such leave does not exceed six (6) months, or if longer, so long as Employee’s right to reemployment with the Company or 

 
an affiliate is provided either by statute or contract). If Employee’s period of leave exceeds six (6) months and Employee’s right to reemployment is not provided either by statute
or by contract, the relationship between Employee and the Company is deemed to terminate on the first (1st) day immediately following the expiration of such six (6) month period. Whether a
termination has occurred will be determined based on all of the facts and circumstances. 
 For purposes of this paragraph, the term
“affiliate” shall have the meaning set forth in 26 C.F.R. § 1.409A-1(h)(3) (which generally requires 50% common ownership). 

If Employee is providing services to the Company in more than one (1) capacity, for example as both an employee and a member of the Board
of Directors or an independent contractor for the Company, Employee must terminate employment with or services to the Company in all capacities in order to have a Separation from Service for purposes of this Agreement. 

j.    This Agreement shall be administered in compliance with Section 409A of the Code or an exception thereto,
including, without limitation, the short-term deferral exception within the meaning of 26 C.F.R.§1.409A-1(b)(4) and separation pay due to involuntary separation from service within the meaning of 26 C.F.R.§1.409A-1(b)(9)(iii). Each provision of the Agreement shall be interpreted, to the extent possible, to comply with Section 409A or an exception thereto. Payments pursuant to this section are intended
to constitute separate payments for purposes of 26 C.F.R. § 1.409A-2(b)(2). 
 Notwithstanding
any of the foregoing, if the Employee is a Specified Employee on the Termination Date, all payments and benefits that constitute nonqualified deferred compensation within the meaning of Code Section 409A that do not satisfy the requirements of
an exception to Code Section 409A, if any, that are to be made following the fifteenth (15th) day of the third (3rd) month of the
Employee’s taxable year following the Employee’s taxable year in which the Termination Date occurred, but before the date which is six (6) months following the Termination Date, shall be delayed and paid in a lump-sum on the first (1st) day of the seventh (7th) month following the Employee’s Termination Date or,
if earlier, the date the Employee dies following the Termination Date. 
 10.    Mitigation or Reduction of
Benefits. In the event of termination of employment as set forth in Section 9 above, Employee shall not be required to mitigate the amount of any payment provided for in that Section by seeking other employment or otherwise. Except as
otherwise specifically set forth herein, the amount of any payment or benefits provided in Section 9 shall not be reduced by any compensation or benefits or other amounts paid to or earned by Employee as the result of employment by another
employer after the Termination Date. 
 11.    [Intentionally Omitted] 

12.    Release. In order to receive payments and benefits described in Section 9, other than those
provided in Section 8 and those provided in the event of Employee’s death, Employee must execute a Release substantially in the form attached as Exhibit A, and that Release must become effective by Employee not revoking it. If
Employee fails to sign the Release within the period provided in the Release, or if Employee revokes the Release within the seven (7) day revocation period provided therein, Employee will forfeit any right to the payments and benefits described
in Section 9. As a general rule, Employee shall receive the Release from the Company on or before Employee’s Termination Date, but in no event will Employee receive the Release 

 
more than ten (10) days following Employee’s Termination Date. Notwithstanding anything in this Agreement to the contrary, if the period during which Employee may consider and revoke
the Release spans two (2) calendar years, any payments to which Employee is entitled pursuant to Sections 9.a.(ii), 9.b.(ii) and 9.c.(i) shall be made in the second (2nd) calendar year. 

13.    Covenant Not to Compete. In consideration of this Agreement, and the employment under it, the parties
agree to the following Covenant Not to Compete. 
 a.    Post-Termination Restrictions. Employee acknowledges that the
services provided under this Agreement give Employee the opportunity to have special knowledge of the Company, its Confidential Information, and the capabilities of individuals employed by or affiliated with the Company. Employee further
acknowledges that interference with those business or employment relationships with the Company would cause irreparable injury to the Company. Consequently, Employee covenants and agrees as follows: 

(i)    Non-Competition. From the Effective Date hereof until twelve
(12) months after the Termination Date, without the express written approval of a majority of the Board of Directors, Employee will not directly or indirectly, Compete against Company anywhere in the Market. 

(ii)    Non-Solicitation. From the effective date hereof until
twelve (12) months after the Termination Date (which shall not be reduced by (a) any period of violation of this Agreement by Employee or (b) if the Company is the prevailing party in any litigation to enforce its rights under this
Section 13, the period which is required for such litigation), Employee will not, without the express prior written approval of a majority of the Board of Directors, directly or indirectly: (i) recruit, solicit or otherwise induce or
influence any proprietor, partner, stockholder, lender, director, officer, employee, sales agent, joint venturer, investor, lessor, customer, agent, representative or any other person which has a business relationship with the Company or had a
business relationship with the Company within the twelve (12) month period preceding the date of the incident in question, to discontinue, reduce or modify such employment, agency or business relationship with the Company; or (ii) employ
or seek to employ or cause any Competitive Business to employ or seek to employ any person or agent who is then (or was at any time within twelve (12) months prior to the date the Employee or the Competitive Business employs or seeks to employ
such person) employed or retained by the Company. Notwithstanding the foregoing, nothing herein shall prevent the Employee from providing a personal letter of recommendation to an employee of the Company with respect to a future or any other
employment opportunity. 
 b.    Acknowledgment Regarding Restrictions. Employee recognizes and agrees that the
restraints contained in Section 13 (both separately and in total) are reasonable and should be fully enforceable in view of the high level positions Employee has had with the Company, and the Company’s legitimate interests in protecting
its Confidential Information and its goodwill and relationships. Employee specifically hereby acknowledges and confirms that Employee is willing and intends to, and will, abide fully by the terms of Section 13 of this Agreement. Employee
further agrees that the Company would not have adequate protection if Employee were permitted to work in a Competitive Business in violation of the terms of this Agreement since the disclosure of Confidential Information is inevitable and the
Company would be unable to verify whether its Confidential Information was being disclosed and/or misused. Employee further specifically acknowledges that the scope and term of this Section 13 would not preclude Employee from earning a living
in an occupation or position with an entity that is not a Competitive Business. 

 c.    Company’s Right to Cease and Recoup Payments and Obtain Injunctive
Relief. In the event of a breach or imminent breach of any of Employee’s duties or obligations under this Agreement, provided the Company has provided Employee with written notice specifying the breach or imminent breach and Employee has failed
to cure such breach or has committed such imminent breach within five (5) calendar days of such notice, the Company shall be entitled to immediately cease all payments and benefits to Employee under Section 9 and, in the event of an actual
breach, require Employee to disgorge and repay to Company all payments and benefits previously paid to or conferred upon Employee under Section 9 of this Agreement after the commencement of Employee’s breach. Employee agrees that if
Employee breaches any duties or obligations Employee has under Section 13 and/or Section 14 of this Agreement, that, except for sums set forth in Section 8, Employee has no right to any money or benefits under Section 9 of this
Agreement and that Employee must return any money paid to Employee under that section. In addition to any other legal or equitable remedies the Company may have (including any right to damages that it may suffer), the Company shall be entitled to
temporary, preliminary and permanent injunctive relief restraining such breach or imminent breach without being required to post a bond, surety or other security therefor. Employee hereby expressly acknowledges that the harm which might result to
Company’s business as a result of noncompliance by Employee with any of the provisions of this Agreement would be largely irreparable. Each party undertakes and agrees that if he/it breaches or threatens to breach the Agreement, he/it shall be
liable for any attorneys’ fees and costs incurred by the other party in enforcing its rights hereunder. 

d.    Employee Agreement to Disclose this Agreement. Employee agrees to disclose the terms of this Agreement to any
potential future employer, and Employee consents to the Company’s disclosure of the terms of this Agreement to any potential future employer. 

e.    Survival. The terms of this entire Section 13 shall survive the termination of Employee’s employment under
this Agreement regardless of who terminates employment or the reasons therefore. 
 14.    Confidential
Information. 
 a.    During and after the Term of Employment, Employee will not, directly or indirectly, in one
(1) or a series of transactions, disclose to any person, or use or otherwise exploit for the Employee’s own benefit or for the benefit of anyone other than the Company, any Confidential Information, whether prepared by Employee or not;
provided, however, that any Confidential Information may be disclosed (i) to officers, representatives, employees and agents of the Company who need to know such Confidential Information in order to perform the services or conduct the
operations required or expected of them in the business, and (ii) in good faith by the Employee in connection with the performance of Employee’s duties hereunder to persons who are authorized to receive such information by the Company.
Employee shall use Employee’s best efforts to prevent the removal of any Confidential Information from the premises of the Company, except as required in Employee’s normal course of employment by the Company. Employee shall use
Employee’s best efforts to cause all persons or entities to whom any Confidential Information shall be disclosed by Employee hereunder to observe the terms and conditions set forth herein as though each such person or entity was bound hereby.
Employee shall have no obligation hereunder to keep confidential any Confidential Information, 

 
if and to the extent disclosure of any such information is specifically required by law or requested by a governmental agency; provided, however, that in the event disclosure is required by
applicable law or requested by a governmental agency, the Employee shall provide the Company with prompt notice of such requirement or request, prior to making any disclosure, so that the Company may seek an appropriate protective order. At the
request of the Company, Employee agrees to deliver to the Company, at any time during the Term of Employment, or thereafter, all Confidential Information which Employee may possess or control. Employee agrees that all Confidential Information of the
Company (whether now or hereafter existing) conceived, discovered or made by Employee during the Term of Employment exclusively belongs to the Company (and not to Employee). Employee will promptly disclose such Confidential Information to the
Company and perform all actions reasonably requested by the Company to establish and confirm such exclusive ownership. 

b.    The terms of this entire Section 14 shall survive the termination of Employee’s employment under this
Agreement regardless of who terminates employment or the reasons therefore. 
 15.    Indemnification and
Insurance. Employee will be covered under the Company’s insurance policies and, subject to applicable law, will be provided indemnification to the maximum extent permitted by applicable law and by the Company’s bylaws, Certificate
of Incorporation and standard form of Indemnification Agreement, if any, with such insurance coverage and indemnification to be in accordance with the Company’s standard practices for senior executive officers but on terms no less favorable
than provided to other Company senior executive officers. 
 16.    Notice. All notices hereunder shall be
in writing and shall be deemed to have been duly given (a) when delivered personally or by courier, or (b) on the third (3rd) business day following the mailing thereof by registered or
certified mail, postage prepaid, or (c) on the first (1st) business day following the mailing thereof by overnight delivery service, in each case addressed as set forth below: 

If to the Company: 
 Nuverra
Environmental Solutions, Inc. 
 14624 North Scottsdale Road, Suite 300 

Scottsdale, Arizona 85254 

Attention: Chief Executive Officer 

With a copy to: 
 Nuverra
Environmental Solutions, Inc. 
 14624 North Scottsdale Road, Suite 300 

Scottsdale, Arizona 85254 

Attention: Vice President of Human Resources 

If to Employee: 
 Ed Lang 

54 Ocean Drive 
 Kiawah Island,
SC 29455 

 Any party may change the address to which notices are to be addressed by giving the other party written notice in
the manner herein set forth. 
 17.    Agreement to Arbitrate. Except with respect to an action the
Company to enforce the terms of Sections 13 or 14, which may be commenced and venued in the state or federal courts located in Phoenix, Arizona, all disputes or claims regarding this Agreement, Employee’s employment with the Company or the
termination of Employee’s employment shall be submitted for resolution exclusively to binding arbitration under the Employment Arbitration Rules of the American Arbitration Association in Maricopa County, Arizona. The parties shall bear their
own attorneys’ fees, and shall bear equally the expenses of the arbitral proceedings, including without limitation the fees of the arbitrator. 

18.    Successors; Binding Agreement. 

a.    The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company, upon or prior to such succession, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would have been required
to perform it if no such succession had taken place. A copy of such assumption and agreement shall be delivered to Employee promptly after its execution by the successor. Failure of the Company to obtain such agreement upon or prior to the
effectiveness of any such succession shall be deemed to be a material breach of this Agreement. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as
aforesaid which executes and delivers the agreement provided for in this Section 18 or which otherwise becomes bound by the terms and provisions of this Agreement by operation of law. 

b.    This Agreement is personal to Employee, and Employee may not assign or delegate any part of Employee’s rights
or duties hereunder to any other person, except that this Agreement shall inure to the benefit of, and be enforceable by, Employee’s legal representatives, executors, administrators, heirs and beneficiaries. 

19.    Severability. If any provision of this Agreement or the application thereof to any person or
circumstance shall to any extent be held to be invalid or unenforceable, the remainder of this Agreement and the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be
affected thereby, and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. A court, arbitrator or arbitration panel may reasonably modify this Agreement by rewriting it and/or may
“blue-pencil” this Agreement by striking things out. 
 20.    Headings. The headings in this
Agreement are inserted for convenience of reference only and shall not in any way affect the meaning or interpretation of this Agreement. 

21.    Counterparts. This Agreement may be executed in one (1) or more identical counterparts, each of
which shall be deemed an original but all of which together shall constitute one (1) and the same instrument. 

22.    Waiver. Neither any course of dealing nor any failure or neglect of either party hereto in any
instance to exercise any right, power or privilege hereunder or under law shall constitute a waiver of such right, power or privilege or of any other right, power or privilege or of the same right, power or privilege in any other instance. Without
limiting the generality of the 

 
foregoing, Employee’s continued employment without objection shall not constitute Employee’s consent to, or a waiver of, Employee’s rights with respect to any circumstances
constituting Good Reason. All waivers by either party hereto must be contained in a written instrument signed by the party to be charged therewith. 

23.    Entire Agreement. This instrument constitutes the entire agreement of the parties in this matter and
shall supersede any other agreement between the parties, oral or written, concerning the same subject matter. 

24.    Amendment. This Agreement may be amended only by a writing which makes express reference to this
Agreement as the subject of such amendment and which is signed by Employee and by the Chairman of the Compensation Committee of the Board of Directors or the Chairman’s designee. 

25.    Governing Law. This Agreement shall be interpreted in accordance with and governed by the laws of the
State of Delaware, without regard for any conflict/choice of law principles. 
 26.    Taxes. All payments
and benefits under this Agreement are subject to applicable tax withholdings, and the tax treatment of such payments and benefits is not warranted or guaranteed by the Company. Neither the Company nor its affiliates shall be liable for any taxes,
penalties, or other monetary amounts owed by Employee or any other person as a result of any payments or the provision of any benefits under this Agreement. 

[Signatures appear on following page.] 

 IN WITNESS WHEREOF, Employee and the Company have executed this Agreement as of the day and year
first above written. 
  

							
		 	NUVERRA ENVIRONMENTAL SOLUTIONS, INC.	  	
				
		 	By:	 	 /s/ Mark D. Johnsrud
	  	
		 	Its:	 	Chief Executive Officer	  	
			
		 	EMPLOYEE:	  	
			
		 	 /s/ Ed Lang
	  	
		 	Ed Lang	  	

 SCHEDULE 1 

Companies in the Company Group consist of: 

Nuverra Environmental Solutions, Inc. 

Heckmann Water Resources Corp 

Heckmann Water Resources (CVR), Inc. 

HEK Water Solutions, LLC 
 1960
Well Services, LLC 
 Appalachian Water Services, LLC 

Badlands Powers Fuels, LLC 

Badlands Leasing, LLC 
 Badlands
Leasing, LLC 
 Nuverra Rocky Mountain Pipeline, LLC 

Landtech Enterprises, LLC 

 Exhibit A 

RELEASE 
 This RELEASE (the
“Release”) dated    ,                  is by and between {*} (“Employee”) and {Nuverra Environmental solutions, Inc.},
(“Company”); 
 WHEREAS, the Company and Employee are parties to an Employment Agreement dated {*} (the “Employment
Agreement”), which provides certain protection to Employee during employment and upon termination of employment; and 
 WHEREAS, the
execution of this Release is a condition precedent to, and material inducement to, the Company’s provision of certain benefits under the Employment Agreement; 

NOW, THEREFORE, the parties hereto agree as follows: 

1.    Mutual Promises. The Company undertakes the obligations contained in the Employment Agreement, which
are in addition to any compensation to which Employee might otherwise be entitled, in exchange for Employee’s promises and obligations contained herein. The Company’s obligations are undertaken in lieu of any other employment benefits.

 2.    Release of Claims; Agreement Not to File Suit. 

a.    Employee, for and on behalf of him or herself and his/her heirs, beneficiaries, executors, administrators,
successors, assigns and anyone claiming through or under any of the foregoing, agrees to, and does, release and forever discharge the Company and its subsidiaries and affiliates, each of their shareholders, directors, officers, employees, agents and
representatives, and its successors and assigns (collectively, the “Company Released Persons”), from any and all matters, claims, demands, damages, causes of action, debts, liabilities, controversies, judgments and suits of every kind and
nature whatsoever, foreseen or unforeseen, known or unknown, which have arisen or could arise from matters which occurred prior to the date of this Release, which matters include without limitation: (i) the matters covered by the Employment
Agreement and this Release, and (ii) Employee’s employment, and/or termination from employment with the Company. 

b.    Employee, for and on behalf of him or herself and his/her heirs, beneficiaries, executors, administrators,
successors, assigns, and anyone claiming through or under any of the foregoing, agrees that Employee will not file or otherwise submit any arbitration demand, claim, complaint, or action to any court, organization, or judicial forum (nor will
Employee permit any person, group of persons, or organization to take such action on Employee’s behalf) against any Company Released Person arising out of any actions or non-actions on the part of any
Company Released Person arising out of the parties’ employment relationship before the date of this Release or any action taken after the date of this Release pursuant to the Employment Agreement. Employee further agrees that in the event that
any person or entity should bring such a charge, claim, complaint, or action on Employee’s behalf, Employee hereby waives and forfeits any right to recovery under said claim and will exercise every good faith effort to have such claim
dismissed. 
 c.    The charges, claims, complaints, matters, demands, damages, and causes of action referenced in
Sections 2(a) and 2(b) include, but are not limited to: (i) any breach of an actual or implied contract of employment between Employee and any Company Released Person, (ii) any claim of unjust, wrongful, or tortious discharge (including,
but not limited to, any claim of fraud, 

  
 -1- 

 
negligence, retaliation for whistle blowing, or intentional infliction of emotional distress), (iii) any claim of defamation or other common law action, or (iv) any claims of violations
arising under the Civil Rights Act of 1964, as amended, 42 U.S.C. §§2000e et seq., the Age Discrimination in Employment Act, 29 U.S.C. §§621 et seq., the Americans with Disabilities Act of 1990, 42 U.S.C. §§12101 et
seq., the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. §§201 et seq., the Rehabilitation Act of 1973, as amended, 29 U.S.C. §§701 et seq., the Family and Medical Leave Act, or any other relevant federal, state, or
local statutes or ordinances, or any claims for pay, vacation pay, insurance, or welfare benefits or any other benefits of employment with any Company Released Person arising from events occurring prior to the date of this Release other than those
payments and benefits specifically provided herein. 
 d.    This Release shall not affect Employee’s right to any
governmental benefits payable under any Social Security or Worker’s Compensation law now or in the future. 

e.    This Release does not affect Employee’s right to participate in any federal, state or local investigation by
any governmental agency or to challenge the validity of this Agreement. Further, this Release is not intended to be a release of any claims under the Arizona Minimum Wage Act. 

f.    This Release does not release any claim for payments under Section 9 of the Agreement or any (i) rights of
indemnification pursuant to applicable law, Company Bylaws, or any agreement with the Company or (ii) Employee’s rights under any applicable insurance policy with the Company. 

3.    Release of Benefit Claims. Employee, for and on behalf of him or herself and his/her heirs,
beneficiaries, executors, administrators, successors, assigns and anyone claiming through or under any of the foregoing, further releases and waives any claims for pay, vacation pay, insurance or welfare benefits or any other benefits of employment
with any Company Released Person arising from events occurring prior to the date of this Release other than claims to the payments and benefits specifically provided for in the Employment Agreement and claims for benefits which are not subject to
waiver under the law. 
 4.    Revocation Period; Knowing and Voluntary Agreement. Employee acknowledges
that he/she is knowingly and voluntarily waiving and releasing any rights he/she may have under the Age Discrimination in Employment Act, as amended, (“ADEA”). Employee also acknowledges that the consideration given for the waiver and
release in the preceding Section is in addition to anything of value to which he/she would be entitled to without this Agreement. Employee further acknowledges that Employee is advised by this writing, as required by the ADEA, that: (a) this
waiver and release do not apply to any rights or claims that may arise after execution date of this Agreement; (b) Employee has been advised of having had the right to consult with an attorney prior to signing this Agreement; (c) Employee
has twenty-one (21) days to consider this Agreement (although Employee may choose to voluntarily execute this Agreement earlier); (d) Employee has seven (7) days following the signing of this
Agreement by the parties to revoke the Agreement; and (e) this Agreement shall not be effective until the date upon which the revocation period has expired, which shall be the eighth (8th)
day after this Agreement is executed by the Employee. 

  
 -2- 

 5.    Nondisparagement. Neither Employee nor the Company will
knowingly and materially make any false statements regarding the Company or Employee, respectively, and the Company, in its official statements, will not knowingly and materially make false statements regarding Employee. Notwithstanding the
foregoing, nothing contained in this Agreement will be deemed to restrict Employee, the Company or any of the Company’s current or former officers and/or directors from providing information to any governmental or regulatory agency (or in any
way limit the content of any such information) to the extent they are requested or required to provide such information pursuant to applicable law or regulation. 

6.    Severability. If any provision of this Release or the application thereof to any person or
circumstance shall to any extent be held to be invalid or unenforceable, the remainder of this Release and the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be
affected thereby, and each provision of this Release shall be valid and enforceable to the fullest extent permitted by law. 

7.    Headings. The headings in this Release are inserted for convenience of reference only and shall not in
any way affect the meaning or interpretation of this Release. 
 8.    Counterparts. This Release may be
executed in one (1) or more identical counterparts, each of which shall be deemed an original but all of which together shall constitute one (1) and the same instrument. 

9.    Entire Agreement. This Release and related Employment Agreement constitutes the entire agreement of
the parties in this matter and shall supersede any other agreement between the parties, oral or written, concerning the same subject matter. 

10.    Governing Law. This Release shall be governed by, and construed and enforced in accordance with, the
laws of the State of Arizona, without reference to the conflict of laws rules of such State. 
 IN WITNESS WHEREOF, Employee and the Company
have executed this Release as of the day and year first above written. 
  

	
	NUVERRA ENVIRONMENTAL SOLUTIONS, INC.
	
	By:
	
	Its:
	
	EMPLOYEE:
	
	{*}

  
 -3-Blueprint

 

Exhibit
10.19

 

 

AEHR TEST SYSTEMS

2016 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

 

NOTICE OF STOCK OPTION GRANT

 

Unless
otherwise defined herein, the terms defined in the Aehr Test
Systems 2016 Equity Incentive Plan (the “Plan”) will
have the same defined meanings in this Stock Option Agreement
including the Notice of Stock Option Grant (the “Notice of
Grant”), the Terms and Conditions of Stock Option Grant, and
the appendices and exhibits attached thereto (all together, the
“Award Agreement”).

 

	

Name
(“Participant”):

 

	

«Name»

 

	

Address:

	

«Address»

 

 

The
undersigned Participant has been granted an Option to purchase
Common Stock of Aehr Test Systems (the “Company”),
subject to the terms and conditions of the Plan and this Award
Agreement, as follows:

 

	

Date of
Grant

 

	

«GrantDate»

 

	

Vesting
Commencement Date

 

	

«VCD»

 

	

Number
of Shares Granted

 

	

«Shares»

 

	

Exercise Price per
Share

 

	

$«SharePrice»

 

	

Total
Exercise Price

 

	

$«TotalExercisePrice»

 

	

Type of
Option

 

	

[ ]
Incentive Stock Option

 

	
 

	

[ ]
Nonstatutory Stock Option

 

	

Term/Expiration
Date

 

	

«Term»
or «ExpirationDate»

 

Vesting Schedule:

 

       Subject
to accelerated vesting as set forth below or in the Plan, this
Option will be exercisable, in whole or in part, in accordance with
the following schedule:

 

[Insert
Vesting Schedule] 

 

Termination
Period:

 

This
Option will be exercisable for three (3) months after Participant
ceases to be a Service Provider, unless such termination is due to
Participant’s death or Disability, in which case this Option
will be exercisable for twelve (12) months after Participant ceases
to be a Service Provider. Notwithstanding the foregoing sentence,
in no event may this Option be exercised after the Term/Expiration
Date as provided above and may be subject to earlier termination as
provided in Section 15 of the Plan.

 

Participant
acknowledges receipt of a copy of the Plan and represents that he
or she is familiar with the terms and provisions thereof, and
hereby accepts this Award Agreement subject to all of the terms and
provisions thereof. Participant has reviewed the Plan and this
Award Agreement in their entirety, has had an opportunity to obtain
the advice of counsel
prior to executing this Award Agreement and fully understands all
provisions of this Award Agreement. Participant hereby agrees to
accept as binding, conclusive and final all decisions or
interpretations of the Administrator upon any questions arising
under the Plan or this Award Agreement. Participant further agrees
to notify the Company upon any change in the residence address
indicated below.

 

 

 

 

 

	

PARTICIPANT

	
 

	

AEHR
TEST SYSTEMS

	
 

	
 

	
 

	
 

	
 

	
 

	

Signature

	
 

	

By

	
 

	
 

	
 

	
 

	
 

	
 

	

Print Name

	
 

	

Print
Name

	
 

	
 

	
 

	

Address:

	
 

	

Title

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

AEHR TEST SYSTEMS

2016 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

 

TERMS AND CONDITIONS OF STOCK OPTION GRANT

 

1. Grant
of Option. The Company hereby grants to the individual (the
“Participant”) named in the Notice of Stock Option
Grant of this Award Agreement (the “Notice of Grant”)
an option (the “Option”) to purchase the number of
Shares, as set forth in the Notice of Grant, at the exercise price
per Share set forth in the Notice of Grant (the “Exercise
Price”), subject to all of the terms and conditions in this
Award Agreement and the Plan, which is incorporated herein by
reference. Subject to Section 21(c) of the Plan, in the event of a
conflict between the terms and conditions of the Plan and the terms
and conditions of this Award Agreement, the terms and conditions of
the Plan will prevail.

 

(a) For U.S.
taxpayers, the Option will be designated as either an Incentive
Stock Option (“ISO”) or a Nonstatutory Stock Option
(“NSO”). If designated in the Notice of Grant as an
ISO, this Option is intended to qualify as an ISO under Section 422
of the Internal Revenue Code of 1986, as amended (the
“Code”). However, if this Option is intended to be an
Incentive Stock Option, to the extent that it exceeds the $100,000
rule of Code Section 422(d) it will be treated as an NSO. Further,
if for any reason this Option (or portion thereof) will not qualify
as an ISO, then, to the extent of such nonqualification, such
Option (or portion thereof) shall be regarded as a NSO granted
under the Plan. In no event will the Administrator, the Company or
any Parent or Subsidiary or any of their respective employees or
directors have any liability to Participant (or any other person)
due to the failure of the Option to qualify for any reason as an
ISO.

 

(b) For
non-U.S. taxpayers, the Option will be designated as an
NSO.

 

2. Vesting
Schedule. Except as provided in Section 3, the Option awarded by this Award Agreement
will vest in accordance with the vesting provisions set forth in
the Notice of Grant. Shares scheduled to vest on a certain date or
upon the occurrence of a certain condition will not vest in
Participant in accordance with any of the provisions of this Award
Agreement, unless Participant will have been continuously a Service
Provider from the Date of Grant until the date such vesting
occurs.

3. Administrator Discretion. The
Administrator, in its discretion, may accelerate the vesting of the
balance, or some lesser portion of the balance, of the unvested
Option at any time, subject to the terms of the Plan. If so
accelerated, such Option will be considered as having vested as of
the date specified by the Administrator.

 

4. Exercise
of Option.

 

(a) Right
to Exercise. This Option may be exercised only within the
term set out in the Notice of Grant, and may be exercised during
such term only in accordance with the Plan and the terms of this
Award Agreement.

 

 

 

 

(b) Method
of Exercise. This Option is exercisable by delivery of an
exercise notice (the “Exercise Notice”) in the form
attached as Exhibit
A or in a manner and pursuant
to such procedures as the Administrator may determine, which
will state the election to exercise the Option, the number of
Shares in respect of which the Option is being exercised (the
“Exercised Shares”), and such other representations and
agreements as may be required by the Company pursuant to the
provisions of the Plan. The Exercise Notice will be completed by
Participant and delivered to the Company. The Exercise Notice will
be accompanied by payment of the aggregate Exercise Price as to all
Exercised Shares together and of any Tax Obligations (as defined in
Section 6(a)). This Option will be deemed to be exercised upon
receipt by the Company of such fully executed Exercise Notice
accompanied by the aggregate Exercise Price.

 

5. Method
of Payment. Payment of the aggregate Exercise Price will be
by any of the following, or a combination thereof, at the election
of Participant:

 

(a) cash;

 

(b) check;

 

(c) consideration
received by the Company under a formal cashless exercise program
adopted by the Company in connection with the Plan; or

 

(d) if
Participant is a U.S. employee, surrender of other Shares which
have a Fair Market Value on the date of surrender equal to the
aggregate Exercise Price of the Exercised Shares, provided that
accepting such Shares, in the sole discretion of the Administrator,
will not result in any adverse accounting consequences to the
Company.

 

6. Tax
Obligations.

 

(a) Participant
acknowledges that, regardless of any action taken by the Company
or, if different, Participant’s employer (the
“Employer”), the ultimate liability for any tax and/or
social insurance liability obligations and requirements in
connection with the Option, including, without limitation, (a) all
federal, state, and local taxes (including the Participant’s
Federal Insurance Contributions Act (FICA) obligation) that are
required to be withheld by the Company or the Employer or other
payment of tax-related items related to Participant’s
participation in the Plan and legally applicable to Participant,
(b) the Participant’s and, to the extent required by the
Company (or Employer), the Company’s (or Employer’s)
fringe benefit tax liability, if any, associated with the grant,
vesting, or exercise of the Option or sale of Shares, and
(c) any other Company (or Employer) taxes the responsibility
for which the Participant has, or has agreed to bear, with respect
to the Option (or exercise thereof or issuance of Shares
thereunder) (collectively, the “Tax Obligations”), is
and remains Participant’s responsibility and may exceed the
amount actually withheld by the Company or the Employer.
Participant further acknowledges that the Company and/or the
Employer (i) make no representations or undertakings regarding the
treatment of any Tax Obligations in connection with any aspect of
the Option, including, but not limited to, the grant, vesting or
exercise of the Option, the subsequent sale of Shares acquired
pursuant to such exercise and the receipt of any dividends or other
distributions, and (ii) do not commit to and are under no
obligation to structure the terms of the grant or any aspect of the
Option to reduce or eliminate Participant’s liability for Tax
Obligations or achieve any particular tax result. Further, if
Participant is subject to Tax Obligations in more than one
jurisdiction between the Date of Grant and the date of any relevant
taxable or tax withholding event, as applicable, Participant
acknowledges that the Company and/or the Employer (or former
employer, as applicable) may be required to withhold or account for
Tax Obligations in more than one jurisdiction. If Participant fails
to make satisfactory arrangements for the payment of any required
Tax Obligations hereunder at the time of the applicable taxable
event, Participant acknowledges and agrees that the Company may
refuse to issue or deliver the Shares.

(b) Tax
Withholding. When the Option is exercised, Participant
generally will recognize immediate U.S. taxable income if
Participant is a U.S. taxpayer. If Participant is a non-U.S.
taxpayer, Participant will be subject to applicable taxes in his or
her jurisdiction. Pursuant to such procedures as the Administrator
may specify from time to time, the Company and/or Employer shall
withhold the amount required to be withheld for the payment of Tax
Obligations or other greater amount up to the maximum statutory
rate under Applicable Laws, as applicable to the Participant, if
such other greater amount would not result in adverse financial
accounting treatment, as determined by the Company. The
Administrator, in its sole discretion and pursuant to such
procedures as it may specify from time to time, may permit
Participant to satisfy such Tax Obligations, in whole or in part
(without limitation), if permissible by applicable local law, by
(a) paying cash, (b) electing to have the Company withhold
otherwise deliverable Shares having a Fair Market Value equal to
the amount of such Tax Obligations, (c) withholding the amount of
such Tax Obligations from Participant’s wages or other cash
compensation paid to Participant by the company and/or the
Employer, (d) delivering to the Company already vested and
owned Shares having a Fair Market Value equal to such Tax
Obligations, or (e) selling a sufficient number of such Shares
otherwise deliverable to Participant through such means as the
Company may determine in its sole discretion (whether through a
broker or otherwise) equal to the amount of the Tax Obligations. To
the extent determined appropriate by the Company in its discretion,
it will have the right (but not

 

 

 

 

the
obligation) to satisfy any Tax Obligations by reducing the number
of Shares otherwise deliverable to Participant. Further, if
Participant is subject to tax in more than one jurisdiction between
the Date of Grant and a date of any relevant taxable or tax
withholding event, as applicable, Participant acknowledges and
agrees that the Company and/or the Employer (and/or former
employer, as applicable) may be required to withhold or account for
tax in more than one jurisdiction. If
Participant fails to make satisfactory arrangements for the payment
of any required Tax Obligations hereunder at the time of the Option
exercise, Participant acknowledges and agrees that the
Company may refuse to honor the exercise and refuse to deliver the
Shares if such amounts are not delivered at the time of
exercise.

 

(c) Notice
of Disqualifying Disposition of ISO Shares. If the Option
granted to Participant herein is an ISO, and if Participant sells
or otherwise disposes of any of the Shares acquired pursuant to the
ISO on or before the later of (i) the date two (2) years after the
Date of Grant, or (ii) the date one (1) year after the date of
exercise, Participant will immediately notify the Company in
writing of such disposition. Participant agrees that Participant
may be subject to income tax withholding by the Company on the
compensation income recognized by Participant.

 

(d) Code
Section 409A. Under Code Section 409A, an option that vests
after December 31, 2004 (or that vested on or prior to such date
but which was materially modified after October 3, 2004) that was
granted with a per share exercise price that is determined by the
Internal Revenue Service (the “IRS”) to be less than
the fair market value of a share on the date of grant (a
“Discount Option”) may be considered “deferred
compensation.” A Discount Option may result in (i) income
recognition by Participant prior to the exercise of the option,
(ii) an additional twenty percent (20%) federal income tax, and
(iii) potential penalty and interest charges. The Discount Option
may also result in additional state income, penalty and interest
charges to Participant. Participant acknowledges that the Company
cannot and has not guaranteed that the IRS will agree that the per
Share Exercise Price of this Option equals or exceeds the Fair
Market Value of a Share on the Date of Grant in a later
examination. Participant agrees that if the IRS determines that the
Option was granted with a per Share Exercise Price that was less
than the Fair Market Value of a Share on the Date of Grant,
Participant will be solely responsible for Participant’s
costs related to such a determination.

 

7. Rights
as Stockholder. Neither Participant nor any person claiming
under or through Participant will have any of the rights or
privileges of a stockholder of the Company in respect of any Shares
deliverable hereunder unless and until certificates representing
such Shares (which may be in book entry form) will have been
issued, recorded on the records of the Company or its transfer
agents or registrars, and delivered to Participant (including
through electronic delivery to a brokerage account). After such
issuance, recordation and delivery, Participant will have all the
rights of a stockholder of the Company with respect to voting such
Shares and receipt of dividends and distributions on such
Shares.

 

8. No
Guarantee of Continued Service. PARTICIPANT ACKNOWLEDGES AND
AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE
HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE
WILL OF THE COMPANY (OR THE EMPLOYER) AND NOT THROUGH THE ACT OF
BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES
HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS
AWARD AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE
VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR
IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR
THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT
INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF
THE COMPANY (OR THE
EMPLOYER) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A
SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

 

9. Nature
of Grant. In accepting the Option, Participant acknowledges,
understands and agrees that:

 

(a) the grant
of the Option is voluntary and occasional and does not create any
contractual or other right to receive future grants of options, or
benefits in lieu of options, even if options have been granted in
the past;

 

(b) all
decisions with respect to future option or other grants, if any,
will be at the sole discretion of the Company;

 

(c) Participant
is voluntarily participating in the Plan;

 

(d) the Option
and any Shares acquired under the Plan are not intended to replace
any pension rights or compensation;

 

(e) the Option
and Shares acquired under the Plan and the income and value of
same, are not part of normal or expected compensation for purposes
of calculating any severance, resignation, termination,
redundancy,

 

 

 

 

dismissal,
end-of-service payments, bonuses, long-service awards, pension or
retirement or welfare benefits or similar
payments;

(f) the future
value of the Shares underlying the Option is unknown,
indeterminable, and cannot be predicted with
certainty;

 

(g) if the
underlying Shares do not increase in value, the Option will have no
value;

 

(h) if
Participant exercises the Option and acquires Shares, the value of
such Shares may increase or decrease in value, even below the
Exercise Price;

 

(i) for
purposes of the Option, Participant’s engagement as a Service
Provider will be considered terminated as of the date Participant
is no longer actively providing services to the Company or any
Parent or Subsidiary (regardless of the reason for such termination
and whether or not later found to be invalid or in breach of
employment laws in the jurisdiction where Participant is a Service
Provider or the terms of Participant’s employment or service
agreement, if any), and unless otherwise expressly provided in this
Award Agreement (including by reference in the Notice of Grant to
other arrangements or contracts) or determined by the
Administrator, (i) Participant’s right to vest in the Option
under the Plan, if any, will terminate as of such date and will not
be extended by any notice period (e.g., Participant’s period of
service would not include any contractual notice period or any
period of “garden leave” or similar period mandated
under employment laws in the jurisdiction where Participant is a
Service Provider or Participant’s employment or service
agreement, if any, unless Participant is providing bona fide
services during such time); and (ii) the period (if any) during
which Participant may exercise the Option after such termination of
Participant's engagement as a Service Provider will commence on the
date Participant ceases to actively provide services and will not
be extended by any notice period mandated under employment laws in
the jurisdiction where Participant is employed or terms of
Participant’s engagement agreement, if any; the Administrator
shall have the exclusive discretion to determine when Participant
is no longer actively providing services for purposes of his or her
Option grant (including whether Participant may still be considered
to be providing services while on a leave of absence); 

 

(j) unless
otherwise provided in the Plan or by the Company in its discretion,
the Option and the benefits evidenced by this Award Agreement do
not create any entitlement to have the Option or any such benefits
transferred to, or assumed by, another company nor to be exchanged,
cashed out or substituted for, in connection with any corporate
transaction affecting the Shares; and

 

(k) the
following provisions apply only if Participant is providing
services outside the United States:

(i)    
  the Option and the Shares subject to the Option are not part
of normal or expected compensation or salary for any
purpose;

(ii)     
Participant acknowledges and agrees that none of the Company, the
Employer, or any Parent or Subsidiary shall be liable for any foreign
exchange rate fluctuation between Participant’s local
currency and the
United States Dollar that may affect thevalue of the Option or of
any amounts due to Participant pursuant to the exercise of the
Option or the subsequent sale of any Shares acquired upon exercise;
and

(iii)   
no claim or entitlement to compensation or damages shall arise from
forfeiture of the Option resulting from the termination of
Participant’s engagement as a Service Provider (for any
reason whatsoever, whether or not later found to be invalid or in
breach of employment laws in the jurisdiction where Participant is
a Service Provider or the terms of Participant’s employment
or service agreement, if any), and in consideration of the grant of
the Option to which Participant is otherwise not entitled,
Participant irrevocably agrees never to institute any claim against
the Company, any Parent, any Subsidiary or the Employer, waives his
or her ability, if any, to bring any such claim, and releases the
Company, any Parent or Subsidiary and the Employer from any such
claim; if, notwithstanding the foregoing, any such claim is allowed
by a court of competent jurisdiction, then, by participating in the
Plan, Participant shall be deemed irrevocably to have agreed not to
pursue such claim and agrees to execute any and all documents
necessary to request dismissal or withdrawal of such
claim.

 

10. No
Advice Regarding Grant. The Company is not providing any
tax, legal or financial advice, nor is the Company making any
recommendations regarding Participant’s participation in the
Plan, or Participant’s acquisition or sale of the underlying
Shares. Participant is hereby advised to consult with his or her
own personal tax, legal and financial advisors regarding his or her
participation in the Plan before taking any action related to the
Plan.

 

11. Data
Privacy. Participant hereby
explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of Participant’s
personal data as described in this Award Agreement and any other
Option grant materials by and among, as applicable, the Employer,
the Company and any

 

 

 

 

Parent or Subsidiary for
the exclusive purpose of implementing, administering and managing
Participant’s participation in the Plan.

 

Participant understands that the Company and the Employer may hold
certain personal information about Participant, including, but not
limited to, Participant’s name, home address and telephone
number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any Shares
or directorships held in the Company, details of all Options or any
other entitlement to Shares awarded, canceled, exercised, vested,
unvested or outstanding in Participant’s favor
(“Data”), for the exclusive purpose of implementing,
administering and managing the Plan.

 

Participant understands that Data will be transferred to a stock
plan service provider as may be selected by the Company in the
future, which is assisting the Company with the implementation,
administration and management of the Plan. Participant understands
that the recipients of the Data may be located in the United States
or elsewhere, and that the recipient’s country of operation
(e.g., the United States) may have different data privacy laws and
protections than Participant’s country. Participant
understands that if he or she resides outside the United States, he
or she may request a list with the names and addresses of any
potential recipients of the Data by contacting his or her local
human resources representative. Participant authorizes the Company
and any other possible recipients which may assist the Company
(presently or in the future) with implementing, administering and
managing the Plan to receive, possess, use, retain and transfer the
Data, in electronic or other form, for the sole purposes of
implementing, administering and managing Participant’s
participation in the Plan. Participant understands that Data will
be held only as long as is necessary to implement, administer and
manage Participant’s participation in the Plan. Participant
understands that if he or she resides outside the United States, he
or she may, at any time, view Data, request additional information
about the storage and processing of Data, require any necessary
amendments to Data or refuse or withdraw the consents herein, in
any case without cost, by contacting in writing his or her local
human resources representative. Further, Participant understands
that he or she is providing the consents herein on a purely
voluntary basis. If Participant does not consent, or if Participant
later seeks to revoke his or her consent, his or her engagement as
a Service Provider and career with the Employer will not be
adversely affected; the only adverse consequence of refusing or
withdrawing Participant’s consent is that the Company would
not be able to grant Participant Options or other equity awards or
administer or maintain such awards. Therefore, Participant
understands that refusing or withdrawing his or her consent may
affect Participant’s ability to participate in the Plan. For
more information on the consequences of Participant’s refusal
to consent or withdrawal of consent, Participant understands that
he or she may contact his or her local human resources
representative.

12. Address
for Notices. Any notice to be given to the Company under the
terms of this Award Agreement will be addressed to the Company at
Aehr Test Systems, 400 Kato Terrace, Fremont, CA 94539, or at such
other address as the Company may hereafter designate in
writing.

 

13. Non-Transferability
of Option. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of Participant only by
Participant.

 

14. Successors
and Assigns. The Company may assign any of its rights under
this Award Agreement to single or multiple assignees, and this
Award Agreement shall inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer
herein set forth, this Award Agreement shall be binding upon
Participant and his or her heirs, executors, administrators,
successors and assigns. The rights and obligations of Participant
under this Award Agreement may only be assigned with the prior
written consent of the Company.

 

15. Additional
Conditions to Issuance of Stock. If at any time the Company
will determine, in its discretion, that the listing, registration,
qualification or rule compliance of the Shares upon any securities
exchange or under any state, federal or foreign law, the tax code
and related regulations or under the rulings or regulations of the
United States Securities and Exchange Commission or any other
governmental regulatory body or the clearance, consent or approval
of the United States Securities and Exchange Commission or any
other governmental regulatory authority is necessary or desirable
as a condition to the purchase by, or issuance of Shares, to
Participant (or his or her estate) hereunder, such purchase or
issuance will not occur unless and until such listing,
registration, qualification, rule compliance, clearance, consent or
approval will have been completed, effected or obtained free of any
conditions not acceptable to the Company. Subject to the terms of
the Award Agreement and the Plan, the Company shall not be required
to issue any certificate or certificates for Shares hereunder prior
to the lapse of such reasonable period of time following the date
of exercise of the Option as the Administrator may establish from
time to time for reasons of administrative
convenience.

 

16. Language.
If Participant has received this Award Agreement or any other
document related to the Plan translated into a language other than
English and if the meaning of the translated version is different
than the English version, the English version will
control.

 

 

 

 

17. Interpretation.
The Administrator will have the power to interpret the Plan and
this Award Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are
consistent therewith and to interpret or revoke any such rules
(including, but not limited to, the determination of whether or not
any Shares subject to the Option have vested). All actions taken
and all interpretations and determinations made by the
Administrator in good faith will be final and binding upon
Participant, the Company and all other interested persons. Neither
the Administrator nor any person acting on behalf of the
Administrator will be personally liable for any action,
determination or interpretation made in good faith with respect to
the Plan or this Award Agreement.

 

18. Electronic
Delivery and Acceptance. The Company may, in its sole
discretion, decide to deliver any documents related to Options awarded under the Plan or future
options that may be awarded
under the Plan by electronic means or request Participant’s
consent to participate in the Plan by electronic means. Participant
hereby consents to receive such documents by electronic delivery
and agrees to participate in the Plan through any on-line or
electronic system established and maintained by the Company or a
third party designated by the Company.

 

19. Captions.
Captions provided herein are for convenience only and are not to
serve as a basis for interpretation or construction of this Award
Agreement.

 

20. Agreement
Severable. In the event that any provision in this Award
Agreement will be held invalid or unenforceable, such provision
will be severable from, and such invalidity or unenforceability
will not be construed to have any effect on, the remaining
provisions of this Award Agreement.

 

21. Amendment,
Suspension or Termination of the Plan. By accepting this
Award, Participant expressly warrants that he or she has received
an Option under the Plan, and has received, read and understood a
description of the Plan. Participant understands that the Plan is
discretionary in nature and may be amended, suspended or terminated
by the Company at any time.

22. Governing
Law and Venue. This Award Agreement will be governed by the
laws of California, without giving effect to the conflict of law
principles thereof. For purposes of litigating any dispute that
arises under this Option or this Award Agreement, the parties
hereby submit to and consent to the jurisdiction of the State of
California, and agree that such litigation will be conducted in the
courts of Alameda County, California, or the federal courts for the
United States for the Northern District of California, and no other
courts, where this Option is made and/or to be
performed.

 

23. Modifications
to the Agreement. This Award Agreement constitutes the
entire understanding of the parties on the subjects covered.
Participant expressly warrants that he or she is not accepting this
Award Agreement in reliance on any promises, representations, or
inducements other than those contained herein. Modifications to
this Award Agreement or the Plan can be made only in an express
written contract executed by a duly authorized officer of the
Company. Notwithstanding anything to the contrary in the Plan or
this Award Agreement, the Company reserves the right to revise this
Award Agreement as it deems necessary or advisable, in its sole
discretion and without the consent of Participant, to comply with
Code Section 409A or to otherwise avoid imposition of any
additional tax or income recognition under Section 409A of the Code
in connection with the Option.

 

24. No
Waiver. Either party’s failure to enforce any
provision or provisions of this Award Agreement shall not in any
way be construed as a waiver of any such provision or provisions,
nor prevent that party from thereafter enforcing each and every
other provision of this Award Agreement. The rights granted both
parties herein are cumulative and shall not constitute a waiver of
either party’s right to assert all other legal remedies
available to it under the circumstances.

 

25. Tax
Consequences. Participant has reviewed with its own tax
advisors the U.S. federal, state, local and foreign tax
consequences of this investment and the transactions contemplated
by this Award Agreement. With respect to such matters, Participant
relies solely on such advisors and not on any statements or
representations of the Company or any of its agents, written or
oral. Participant understands that Participant (and not the
Company) shall be responsible for Participant’s own tax
liability that may arise as a result of this investment or the
transactions contemplated by this Award Agreement.

 

 

 

EXHIBIT A

 

AEHR TEST SYSTEMS

2016 EQUITY INCENTIVE PLAN

EXERCISE NOTICE

 

 

Aehr
Test Systems

400
Kato Terrace

Fremont,
CA 94539

Attention:
Stock Administration

 

 

1. Exercise
of Option. Effective as of today, ________________, _____,
the undersigned (“Purchaser”) hereby elects to purchase
______________ shares (the “Shares”) of the Common
Stock of Aehr Test Systems (the “Company”) under and
pursuant to the 2016 Equity Incentive Plan (the “Plan”)
and the Stock Option Agreement, dated ________ and including the
Notice of Grant, the Terms and Conditions of Stock Option Grant,
and appendices and exhibits attached thereto (the “Award
Agreement”). The purchase price for the Shares will be
$_____________, as required by the Award Agreement.

 

2. Delivery
of Payment. Purchaser herewith delivers to the Company the
full purchase price of the Shares and any Tax Obligations (as
defined in Section 7(a) of the Award Agreement) to be paid in
connection with the exercise of the Option.

3. Representations
of Purchaser. Purchaser acknowledges that Purchaser has
received, read and understood the Plan and the Award Agreement and
agrees to abide by and be bound by their terms and
conditions.

 

4. Rights
as Stockholder. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the Shares, no right
to vote or receive dividends or any other rights as a stockholder
will exist with respect to the Shares subject to the Option,
notwithstanding the exercise of the Option. The Shares so acquired
will be issued to Purchaser as soon as practicable after exercise
of the Option. No adjustment will be made for a dividend or other
right for which the record date is prior to the date of issuance,
except as provided in Section 15 of the Plan.

 

5. Tax
Consultation. Purchaser understands that Purchaser may
suffer adverse tax consequences as a result of Purchaser’s
purchase or disposition of the Shares. Purchaser represents that
Purchaser has consulted with any tax consultants Purchaser deems
advisable in connection with the purchase or disposition of the
Shares and that Purchaser is not relying on the Company for any tax
advice.

 

6. Entire
Agreement; Governing Law. The Plan and Award Agreement are
incorporated herein by reference. This Exercise Notice, the Plan
and the Award Agreement constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in
their entirety all prior undertakings and agreements of the Company
and Purchaser with respect to the subject matter hereof, and may
not be modified adversely to the Purchaser’s interest except
by means of a writing signed by the Company and Purchaser. This
agreement is governed by the internal substantive laws, but not the
choice of law rules, of California.

 

	

Submitted by:

	
 

	

Accepted by:

	
 

	
 

	
 

	

PURCHASER:

	
 

	

AEHR TEST SYSTEMS

	
 

	
 

	
 

	

 Signature

	
 

	

By

	
 

	
 

	
 

	

 Print Name

	
 

	

Its

	
 

	
 

	
 

	

 Address:

	
 

	
 

	
 

	
 

	

	
 

	
 

	Date
Received

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