Document:

Second Amendment to Lease dated 11/05/2003

 Exhibit 10.5 
  
 SECOND AMENDMENT TO LEASE 
 (1821 East Dyer Road) 
  
 THIS SECOND AMENDMENT TO
LEASE (“Second Amendment”) is made and entered into as of the 5th day of November, 2003, by and between ARDEN REALTY LIMITED PARTNERSHIP, a Maryland limited partnership (“Landlord”) and NEWPORT CORPORATION, a Nevada
corporation (“Tenant”). 
  
 RECITALS:

  
 A.            Landlord and Tenant entered into that certain Standard Form Office Lease dated as of November 1, 2000 (the “Original Lease”) as amended by that
certain First Amendment to Lease dated as of May 23, 2001 by and between Landlord and Tenant (“First Amendment”), whereby Landlord leased to Tenant and Tenant leased from Landlord certain office space located in that certain
building located and addressed at 1821 East Dyer Road, Santa Ana, California (the “Building”). The Original Lease, as amended by the First Amendment, may be referred to herein as the “Lease.” 
  
 B.            By
this Second Amendment, Landlord and Tenant desire to reduce the Existing Premises (as such term is defined in Section 1 below) and to otherwise modify the Lease as provided herein. 
  
 C.            Unless otherwise defined herein, capitalized terms
as used herein shall have the same meanings as given thereto in the Original Lease. 
  
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows: 
  
 AGREEMENT:

  
 1.            The Existing Premises.  Landlord and Tenant hereby agree that pursuant to the Lease, Landlord currently leases to Tenant and Tenant currently leases
from Landlord that certain office space in the Building containing a total of 89,623 rentable square feet and comprised of that certain space known as Suite 100 containing 65,255 rentable square feet located on the first (1st) floor of the Building
(“Suite 100”), plus that certain space known as Suite 225 containing 12,488 rentable square feet located on the second (2nd) floor of the Building (“Suite 225”), both as outlined on Exhibit ”A” to the Original Lease, plus that certain mezzanine space containing approximately 11,880 rentable square feet located on the
second (2nd) floor of the Building (“Mezzanine Space”), as outlined on Exhibit “A” to the
First Amendment. Collectively, Suite 100, Suite 225 and the Mezzanine Space are referred to as the “Existing Premises.” 
  
 2.            Reduction of the Existing Premises.  Suite 100, the Mezzanine
Space, and a portion of Suite 225, all as outlined on the floor plan attached hereto as Exhibit “A” and made a part hereof, may be referred to collectively herein as the “Reduction Space.” Landlord and Tenant
hereby stipulate that the Reduction Space contains a total of 77,635 rentable square feet. Effective as of the earlier of (i) the Commencement Date under the New Lease (as such term is defined in Section 8 below) as reasonably determined by Landlord
and (ii) April 1, 2004 (the “Reduction Commencement Date”), the Existing Premises shall be decreased to exclude the Reduction Space and Tenant shall surrender and deliver exclusive possession of the Reduction Space to Landlord in
accordance with Article 29 of the Original Lease. Landlord and Tenant hereby agree that such deletion of the Reduction Space from the Existing Premises shall, effective as of the Reduction Commencement Date, decrease the number of rentable square
feet leased by Tenant in the Building to a total of 11,988 rentable square feet (the “Reduced Premises”). If Tenant fails to vacate and surrender and deliver exclusive possession of the Reduction Space to Landlord on or before the
Reduction Commencement Date, the holdover provisions of the Lease shall apply. Effective as of the Reduction Commencement Date, all references to the “Premises” shall mean and refer to the Existing Premises as reduced by the Reduction
Space. 

 3.            Access to the Existing
Premises/Reduction Space.  Tenant hereby acknowledges and agrees to provide Landlord or its designees access to the Existing Premises from and after the date of mutual execution and delivery of this Second Amendment by Landlord and
Tenant and prior to the Reduction Commencement Date to allow Landlord or its designees to construct certain improvements in the Reduction Space as required under the New Lease. The performance of such work by or on behalf of Landlord or its
designees shall not be deemed a constructive eviction, nor shall Tenant be entitled to any abatement of rent in connection therewith; provided, however, in connection with any entry to the Existing Premises by Landlord or its designees pursuant to
Landlord’s rights set forth in this Section 3, Landlord and its designees agree to use good faith, commercially reasonable efforts to minimize any interference with Tenant’s permitted business operations in the Existing Premises.

  
 4.            Tenant’s Representations.  Tenant represents and warrants to Landlord that (i) Tenant has not heretofore assigned or sublet all or any portion
of its interest in the Reduction Space; (ii) no other person, firm or entity has any right, title or interest in the Reduction Space; and (iii) Tenant has the full right, legal power and actual authority to enter into this Second Amendment and to
terminate the Lease as to the Reduction Space without the consent of any person, firm or entity. Tenant further represents and warrants to Landlord that as of the date hereof there are no, and as of the Reduction Commencement Date there shall not be
any, mechanics’ liens or other liens encumbering all or any portion of the Reduction Space by virtue of any act or omission on the part of Tenant, its predecessors, contractors, agents, employees, successors or assigns. 
  
 5.            Monthly Basic Rental for the Reduced Premises.  Effective as of the Reduction Commencement Date, Tenant shall pay in accordance with the provisions
of this Section 5, monthly Basic Rental for the Reduced Premises only: 
  

							
	Period

	 	Monthly Basic Rent

	 	Monthly Basic Rent Per
Rentable Square Foot*

	Reduction Commencement
Date – 1/31/04	 	$	12,707.28	 	$	1.06
	2/1/04-1/31/05	 	$	13,066.92	 	$	1.09
	2/1/05-1/31/06	 	$	13,546.44	 	$	1.13

	*	Calculated based upon the rentable square feet within that portion of the Reduced Premises comprised of the remaining portion of Suite 225 only. In addition, if the Reduction
Commencement Date is not the first (1st) day of a calendar month, the monthly Basic Rental for such partial month
shall be prorated based on the actual number of days in such month. All other payments or adjustments required to be made under the terms of the Lease, as amended by this Second Amendment with regard to the Reduced Premises, shall be prorated on the
same basis. 

  
 6.            Tenant’s Proportionate Share.  Notwithstanding anything to the contrary in the Lease, commencing as of the Reduction Commencement Date and
continuing during the remainder of the Term, Tenant’s Proportionate Share of any increase in Direct Costs shall be 9.44% (based upon a total of 126,941 rentable square feet in the Building). 
  
 7.            Parking.  Notwithstanding anything to the contrary contained in the lease, effective as of the Reduction Commencement Date and continuing throughout
the remainder of the Term, Tenant shall be entitled to use up to a total of fifty (50) unreserved parking passes, plus an additional three (3) reserved parking spaces (the location of such reserved parking spaces to be designated by Landlord).
Tenant’s rental and use of such unreserved passes and reserved parking spaces shall be governed by the terms and conditions set forth in Article 23 of the Original Lease, as amended. 
  
 8.            Condition.  The obligations of
Landlord under this Second Amendment are conditioned upon the following (collectively, the “Conditions”): (i) the full execution and delivery of a new lease (“New Lease”) by and between Landlord and a new tenant,
whereby the new tenant shall lease the Reduction Space upon terms satisfactory to Landlord in its sole, but good faith discretion; and (ii) the satisfaction or waiver of any express conditions to the effectiveness of the New Lease. In the event that
the Conditions are not satisfied on or before December 1, 2003, this Second Amendment shall, at Landlord’s option upon written notice to Tenant, be null and void and of no force or effect and the Lease shall continue in full force and effect
with Tenant. 
  

 2 

 9.            Consideration to
Landlord.  As additional consideration for Landlord’s execution of this Second Amendment, Tenant shall pay to Landlord the sum of Seven Hundred Thirty-Five Thousand and No/100 Dollars ($735,000.00) (the “Reduction
Fee”). The Reduction Fee shall be paid by Tenant in two (2) equal installments of Three Hundred Sixty-Seven Thousand Five Hundred and No/100 Dollars ($367,500.00) as follows: (i) the first installment in the amount of Three Hundred
Sixty-Seven Thousand Five Hundred and No/100 Dollars ($367,500.00) shall be paid by Tenant to Landlord concurrently with Tenant’s execution of this Second Amendment in immediately available funds; and (b) the second installment in the amount of
Three Hundred Sixty-Seven Thousand Five Hundred and No/100 Dollars ($367,500.00) shall be paid to Landlord through funds made available from a Letter of Credit to be provided by Tenant in favor of Landlord pursuant to the further provisions of this
Section 9. 
  
 In furtherance of clause (ii) of this Section 9,
concurrently with Tenant’s execution of this Second Amendment, Tenant shall deliver to Landlord an unconditional, irrevocable, renewable and transferable letter of credit (“Letter of Credit”) in favor of Landlord in a form
attached hereto as Exhibit “B”, issued by a bank reasonably satisfactory to Landlord with a branch located in Southern California, in the principal amount of Three Hundred Sixty-Seven Thousand Five Hundred and No/100 Dollars
($367,500.00) (“Stated Amount”), which Stated Amount represents the second installment of the Reduction Fee required to be paid by Tenant pursuant to the first grammatical paragraph of this Section 9 above. The Letter of Credit
shall be held by Landlord in accordance with the terms, provisions and conditions of this Section 9. Tenant shall pay all expenses, points and/or fees incurred by Tenant in obtaining the Letter of Credit. If the Letter of Credit delivered by Tenant
is inconsistent with the form attached hereto as Exhibit “B” (including, without limitation, the wrong name or address for the Beneficiary), Landlord may so notify Tenant in writing, in which case Tenant shall cause the
Letter of Credit to be corrected within five (5) business days after such notice. In no event shall the issuing bank have total assets of less than One Billion Dollars and capital less than six percent (6%) of its total assets (in each case as
determined by the applicable federal regulator of the respective bank). If at any time the issuing bank does not satisfy such criteria, Tenant shall immediately deliver to Landlord a replacement Letter of Credit issued by a bank that satisfies such
criteria. 
  
 The Letter of Credit shall state that an authorized
officer or other representative of Landlord may make demand on Landlord’s behalf for the Stated Amount of the Letter of Credit, or any portion thereof, and that the issuing bank must immediately honor such demand, without qualification or
satisfaction of any conditions, except the proper identification of the party making such demand (the foregoing requirement will be satisfied with language to the following effect in the Letter of Credit: “Beneficiary is entitled to draw upon
the Letter of Credit in accordance with that certain Second Amendment to Lease dated November 5, 2003, between Beneficiary and Applicant”). Landlord agrees that Landlord shall make only one (1) demand for the Stated Amount and except as
otherwise set forth in clauses (A), (B) (C), or (D) of this grammatical paragraph below, such demand will not be made by Landlord prior to April 1, 2004. In addition, the Letter of Credit shall indicate that it is transferable in its entirety by
Landlord as beneficiary and that upon receiving written notice of transfer, and upon presentation to the issuing bank of the original Letter of Credit, the issuer or confirming bank will reissue the Letter of Credit naming such transferee as the
beneficiary. Tenant shall be responsible for the payment to the issuing bank of any transfer costs imposed by the issuing bank in connection with any such transfer. If (A) the term of the Letter of Credit held by Landlord will expire prior to May
31, 2004 and the Letter of Credit is not extended, or a new Letter of Credit for an extended period of time is not substituted, at least thirty (30) days prior to the expiration of the Letter of Credit, or (B) Tenant commits a default beyond any
applicable notice and cure period, with respect to any provision of the Lease (as amended by this Second Amendment), or (C) Tenant files a voluntary petition under Title 11 of the United States Code (i.e., the Bankruptcy Code), or otherwise becomes
a debtor in any case or proceeding under the Bankruptcy Code, as now existing or hereinafter amended, or any similar law or statute, or (D) Tenant does not deliver a substitute Letter of Credit as required above in the event the issuing bank fails
to satisfy the financial criteria set forth above, Landlord may (but shall not be required to) draw upon all or any portion of the Stated Amount of the Letter of Credit, and the proceeds received from such draw shall constitute Landlord’s
property (and not Tenant’s property or the property of the bankruptcy estate of Tenant) and Landlord may then use, apply or retain all or any part of the proceeds for the second installment of the Reduction Fee payable to Landlord pursuant to
this Section 9. 
  

 3 

 The use, application or retention of the Letter of Credit, the proceeds or any portion thereof, shall not
prevent Landlord from exercising any other rights or remedies provided under the Lease (as modified by this Second Amendment), it being intended that Landlord shall not be required to proceed against the Letter of Credit, and such use, application
or retention of the Letter of Credit shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. No trust relationship is created herein between Landlord and Tenant with respect to the Letter of Credit. 

 
 Landlord and Tenant acknowledge and agree that in no event or circumstance
shall the Letter of Credit, any renewal thereof or substitute therefor or the proceeds thereof be (i) deemed to be or treated as a “security deposit” within the meaning of California Civil Code Section 1950.7, (ii) subject to the terms of
such Section 1950.7, or (iii) intended to serve as a “security deposit” within the meaning of such Section 1950.7. The parties hereto (A) recite that the Letter of Credit is not intended to serve as a security deposit and such Section
1950.7 and any and all other laws, rules and regulations applicable to security deposits in the commercial context (“Security Deposit Laws”) shall have no applicability or relevancy thereto and (B) waive any and all rights, duties
and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws. 
  
 Notwithstanding anything contained in this Section 9 to the contrary, if Tenant fails to deliver the first installment of the Reduction Fee and/or the
Letter of Credit to Landlord at the times and in the manner set forth for each above, then Landlord shall have the option to either (i) deem this Second Amendment null and void, in which case the Lease shall continue in full force and effect for the
remainder of the Lease Term, or (ii) deem this Second Amendment effective and pursue any remedies Landlord may have against Tenant at law or in equity for failure to pay such Reduction Fee. 
  
 10.            Brokers.  Each party represents and warrants to the other that no broker, agent or finder negotiated or was instrumental in negotiating or
consummating this Second Amendment. Each party further agrees to defend, indemnify and hold harmless the other party from and against any claim for commission or finder’s fee by any person or entity who claims or alleges that they were retained
or engaged by the first party or at the request of such party in connection with this Second Amendment. 
  
 11.            Defaults.  Tenant hereby represents and warrants to Landlord
that, as of the date of this Second Amendment, Tenant is in full compliance with all terms, covenants and conditions of the Lease and that there are no breaches or defaults under the Lease by Landlord or Tenant, and that Tenant knows of no events or
circumstances which, given the passage of time, would constitute a default under the Lease by either Landlord or Tenant. 
  
 12.            No Further Modification.  Except as set forth in this Second
Amendment, all of the terms and provisions of the Lease shall apply during the Extended Term and shall remain unmodified and in full force and effect. Effective as of the date hereof, all references to the “Lease” shall refer to the Lease
as amended by this Second Amendment. 
  
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 4 

 IN WITNESS WHEREOF, this second Amendment has been executed as of the day and year first above written.

  

													
	 “LANDLORD”
	 	 	 	 ARDEN REALTY LIMITED PARTNERSHIP,
 a Maryland limited partnership

					
	 	 	 	 	 	 	By:	 	 ARDEN REALTY, INC.,
 a Maryland corporation
 Its: Sole General Partner

						
	 	 	 	 	 	 	 	 	By:	 	 /S/ ROBERT C.
PEDDICORD

	 	 	 	 	 	 	 	 	 	 	Its:	 	 Senior Vice President
 Leasing and Operations

											
				
	 “TENANT”
	 	 	 	 	 	 NEWPORT CORPORATION,
 a Nevada corporation

					
	 	 	 	 	 	 	By:	 	 /S/ WILLIAM R. ABBOTT

	 	 	 	 	 	 	 	 	 Print Name: William R. Abbott
 Title: Vice President of Finance and Treasurer

						
	 	 	 	 	 	 	 	 	By:	 	 /S/ DANIEL DELLA
FLORA

	 	 	 	 	 	 	 	 	 Print Name: Daniel Della Flora
 Title: Vice President & Corporate Controller

  

 5 

 EXHIBIT “A” 
  
 OUTLINE OF REDUCTION SPACE 
  
 [PLAN] 
  

 6 

 EXHIBIT B 
  
 LETTER OF CREDIT 
  
 Arden Realty Limited Partnership 
 11601 Wilshire Boulevard, Fourth Floor 
 Los Angeles, California 90025 
 Attention: Legal Department 
  
 Ladies and Gentlemen: 
  
 We hereby establish in your favor, for the account of Newport Corporation, a Nevada corporation (“Applicant”), our Irrevocable Letter of
Credit and authorize you to draw on us at sight the aggregate amount of Three Hundred Sixty-Seven Thousand Five Hundred and No/100 Dollars ($367,500.00) (“Stated Amount”). 
  
 Funds under this Letter of Credit are available to Arden Realty Limited
Partnership Limited Partnership, a Maryland limited partnership (the “Beneficiary”) as follows: 
  
 Any and all of the sums hereunder may be drawn down at any time and from time to time from and after the date hereof by Beneficiary when accompanied by
this Letter of Credit and a written certification signed by an authorized signatory of Beneficiary certifying that such sums are due and owing to Beneficiary pursuant to that certain Second Amendment dated November 5, 2003 (“Second
Amendment”) by and between Beneficiary, as Landlord, and Applicant, as Tenant, together with a notarized certification by any such individual representing that such individual is authorized by Beneficiary to take such action on behalf of
Beneficiary. The sums drawn by Beneficiary under this Letter of Credit shall be payable upon demand without necessity of notice to the Applicant. Partial drawings shall be permitted. 
  
 This Letter of Credit is transferable in its entirety. Should a transfer be desired, such transfer will be subject to the
return to us of this Letter of Credit, together with written instructions. 
  
 The amount of each draft must be endorsed on the reverse hereof by the negotiating bank. We hereby agree that this Letter of Credit shall be duly honored upon presentation and delivery of the certification specified
above. 
  
 This Letter of Credit shall expire on May 31, 2004.

  
 Should the term of this Letter of Credit expire at any time
prior to the foregoing expiration date, this Letter of Credit shall be automatically renewed, at least thirty (30) days prior to any such date of expiration, for successive one (1) year periods, or for lesser periods as required to ensure that this
Letter of Credit remains in full force and effect until the foregoing expiration date, unless, at least thirty (30) days prior to any such date of expiration, the undersigned shall give written notice to Beneficiary, by certified mail, return
receipt requested and at the address set forth above or at such other address as may be given to the undersigned by Beneficiary, that this Letter of Credit will not be renewed. 
  
 This Letter of Credit is governed by the International Standby Practices 1998, International Chamber of Commerce Publication
No. 590. 
  

			
	 Very truly yours,

	
	 (Name of Issuing Bank)

		
	 By:Form of Severance Compensation Agreement

 Exhibit 10.14 
  
 SEVERANCE COMPENSATION AGREEMENT 
  
 This SEVERANCE COMPENSATION AGREEMENT (“Agreement”) is effective as of [date], between NEWPORT CORPORATION, a Nevada corporation (the
“Company”), and [Name] (the “Executive”). 
  
 WHEREAS, the Company’s Board of Directors has determined that it is appropriate to reinforce and encourage the continued attention and dedication of members of the Company’s management, including the Executive, to their assigned
duties without distraction in potentially disturbing circumstances arising from the possibility of a change in control of the Company; and 
  
 WHEREAS, the Company and the Executive desire to set forth the terms and conditions upon which the Company will pay severance compensation to the
Executive if the Executive’s employment with the Company terminates under one of the circumstances described herein following a Change in Control of the Company (as defined in Section 2 below). 
  
 NOW, THEREFORE, in consideration of the mutual agreements herein contained,
the parties agree as follows: 
  
 1. Term. The term of
this Agreement shall commence on the date hereof and shall continue for a period extending until two (2) years following the date on which notice of termination of this Agreement is given by either the Company or Executive to the other (unless
earlier terminated pursuant to Section 3(f)). 
  
 2. Definition
of Change in Control. For purposes of this Agreement, a “Change in Control” of the Company shall be deemed to have occurred if: 
  
 (i) there shall be consummated any consolidation or merger of the Company in which the Company is not the continuing or surviving corporation or
pursuant to which shares of the Company’s outstanding voting securities would be converted into cash, securities or other property (other than a merger of the Company in which the holders of the Company’s outstanding voting securities
immediately prior to the merger have the same proportionate ownership of at least eighty percent (80%) of the outstanding voting securities of the surviving corporation immediately after the merger); or 
  
 (ii) there shall be consummated any consolidation or merger of the Company
in which the Company is the surviving corporation, but the holders of the Company’s outstanding voting securities immediately prior to such merger or consolidation hold, in the aggregate, securities possessing less than fifty percent
(50%) of the total combined voting power of all outstanding voting securities of the Company immediately after such merger or consolidation; or 
  
 (iii) there shall be consummated any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or
substantially all, of the assets of the Company; or 
  
 (iv) the
stockholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company; or 
  
 (v) any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
shall become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of twenty percent (20%) or more of the Company’s outstanding voting securities (other than any such person who is the record owner of at least fifteen
percent (15%) of the Company’s outstanding voting securities on the date hereof, other than nominees); or 

 (vi) during any period of two consecutive years during the term of this Agreement, individuals who at
the beginning of the two year period constituted the entire Board of Directors do not for any reason constitute a majority thereof unless the election, or the nomination for election by the Company’s stockholders, of each new director was
approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period; or 
  
 (vii) an event constituting a “Business Combination” under the Company’s Articles of Incorporation as amended to date. 
  
 3. Termination of Employment Following Change in Control. 

 
 (a) Eligible Termination. The Executive shall be entitled to the
compensation set forth in Section 4 of this Agreement if (1) a Change in Control of the Company shall have occurred while the Executive is an employee of the Company and (2) the Executive’s employment with the Company is subsequently terminated
by the Company or by the Executive within two (2) years of such Change in Control, unless such termination is as a result of: 
  
 (i) the Executive’s death; or 
  
 (ii) the Executive’s Disability (as defined in Section (3)(b) below); or 
  
 (iii) the Executive’s Retirement (as defined in Section 3(c) below); or 
  
 (iv) the Executive’s termination by the Company for Cause (as defined
in Section 3(d) below); or 
  
 (v) the Executive’s decision
to terminate employment other than for Good Reason (as defined in Section 3(e) below). 
  
 (b) Disability. For the purposes of this Agreement, the term “Disability” shall mean the Executive’s incapacity due to physical or mental illness which results in the Executive’s absence
from his duties with the Company on a full-time basis for six (6) consecutive months and prevents the Executive from returning to the full-time performance of duties within thirty (30) days after receipt of written notice of termination from the
Company. 
  
 (c) Retirement. For the purposes of this
Agreement, the term “Retirement” shall mean termination of the Executive’s employment by the Company or by the Executive based on the Executive having reached age sixty-five (65) or such other age as shall have been fixed in any
arrangement established with the Executive’s consent with respect to the Executive. 
  
 (d) Cause. For purposes of this Agreement only, the Executive shall be deemed terminated for “Cause” only if Executive has engaged in fraud, misappropriation or embezzlement on the part of the
Executive. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less
than three-quarters of the entire membership of the Company’s Board of Directors at a meeting of the Board called and held for that purpose (after reasonable notice to the Executive and an opportunity for the Executive, together with the
Executive’s counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Executive was guilty of conduct set forth in this Section 3(d) and specifying the particulars thereof in detail. 
  

 2 

 (e) Good Reason. For purposes of this Agreement, the term “Good Reason” shall mean any
of the following (without the Executive’s express written consent): 
  
 (i) the Company has materially reduced the Executive’s position, duties, responsibilities, status, or offices as in effect immediately prior to a Change in Control of the Company, or removed the Executive from or
failed to reelect the Executive to any of such positions, except in connection with the termination of his employment for Disability, Retirement or Cause or as a result of the Executive’s death; 
  
 (ii) a reduction by the Company in the Executive’s base
salary as in effect on the date hereof or as the same may be increased from time to time during the term of this Agreement or the Company’s failure to increase (within twelve (12) months of the Executive’s last increase in base salary) the
Executive’s base salary after a Change in Control of the Company in an amount which at least equals, on a percentage basis, the average percentage increase in base salary for all officers of the Company effected in the preceding 12 months;

  
 (iii) any failure by the Company to continue
in effect any benefit plan or arrangement (including, without limitation, the Company’s life insurance, accident, disability and health insurance plans, 401(k) and bonus plans, stock options, monthly automobile allowance, and all other similar
plans which are from time to time made generally available to senior executives of the Company) and in which the Executive is participating at the time of a Change in Control of the Company (or any other plan providing the Executive with
substantially similar benefits) (each hereinafter referred to as a “Benefit Plan”), or the taking of any action by the Company which would adversely affect the Executive’s participation in or materially reduce the Executive’s
benefits under any such Benefit Plan or deprive the Executive of any material fringe benefit enjoyed by the Executive at the time of a Change in Control of the Company; 
  
 (iv) any failure by the Company to continue in effect any incentive plan or arrangement (including, without
limitation, the Company’s plans enumerated in subparagraph (iii) above and similar incentive compensation benefits) in which the Executive is participating at the time of a Change in Control of the Company (or any other plans or arrangements
providing him with substantially similar benefits) (each hereinafter referred to as an “Incentive Plan”) or the taking of any action by the Company which would adversely affect the Executive’s participation in any such Incentive Plan
or reduce the Executive’s potential benefits under any such Incentive Plan, expressed as a percentage of his base salary, by more than 10 percentage points in any fiscal year as compared to the immediately preceding fiscal year; 
  
 (v) any failure by the Company to continue in effect any
plan or arrangement to receive securities of the Company (including, without limitation, the Company’s stock option and purchase plans and any other plan or arrangement to receive and exercise stock options, stock appreciation rights,
restricted stock or grants thereof) in which the Executive is participating at the time of a Change in Control of the Company (or plans or arrangements providing him with substantially similar benefits) (each hereinafter referred to as a
“Securities Plan”) or the taking of any action by the Company which would adversely affect the Executive’s participation in or materially reduce the Executive’s benefits under any such Securities Plan; 
  
 (vi) a relocation of the Company’s principal executive
offices to a location outside of Orange County, California, or the Executive’s relocation to any place other than the 
  

 3 

 location at which the Executive performed the Executive’s duties prior to a Change in Control of the
Company, except for required travel by the Executive on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations at the time of a Change of Control of the Company; 
  
 (vii) any failure by the Company to provide the Executive
with the number of paid vacation days to which the Executive is entitled at the time of a Change of Control of the Company; 
  
 (viii) any material breach by the Company of any provision of this Agreement which is not cured within thirty (30) days following written
notice by the Executive; 
  
 (ix) any failure by
the Company to obtain the assumption of this Agreement by any successor or assignee of the Company; or 
  
 (x) any purported termination of the Executive’s employment which is not effected pursuant to a Notice of Termination satisfying the
requirements of Section 3(f), and for purposes of this Agreement, no such purported termination shall be effective. 
  
 (f) Notice of Termination for Disability, Retirement, or Cause. If the Executive’s employment is terminated by Company for reasons set forth
in Section 3(b), 3(c), or 3(d), the Company shall provide to the Executive a notice of termination which shall indicate the specific provisions of this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under the provisions so indicated (the “Notice of Termination”). For purposes of this Agreement, no such purported termination by the Company shall be effective
without such Notice of Termination. The Executive’s employment with the Company, and this Agreement, shall terminate without payment of any compensation or benefits hereunder (i) if for Executive’s Disability, thirty (30) days following
receipt of the Notice of Termination by the Executive, or (ii) if for Retirement or Cause, on the date such Notice of Termination is delivered to the Executive. Notwithstanding the foregoing, if within thirty (30) days after any Notice of
Termination is given to the Executive by the Company the Executive notifies the Company that a dispute exists concerning the termination, the effective date of termination of Executive’s employment, and this Agreement, shall be the date the
dispute is finally determined, whether by mutual agreement by the parties or upon final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom having expired and no appeal having been perfected). 
  
 4. Severance Compensation upon Termination following Change in
Control. No severance compensation shall be payable under this Agreement unless and until (a) there has been a Change in Control of the Company while the Executive is an employee of the Company and (b) the Executive’s employment with the
Company is terminated in accordance with Section 3(a). If the Executive’s employment with the Company is terminated in accordance with Section 3(a), the Executive shall be entitled to the following severance compensation: 
  
 (a) Salary and Bonus. The Company shall pay to the Executive as
severance pay a lump sum, in cash, in full on the fifth day following the Executive’s last day of employment with the Company (the “Date of Termination”) an amount equal to the sum of: (i) the Executive’s highest biweekly
base salary then in effect during the 12-month period immediately preceding the Date of Termination multiplied by twenty-six (26), and (ii) the Executive’s incentive compensation bonus paid under any Incentive Plan of the Company then in effect
during the year of the Date of Termination assuming one hundred percent (100%) satisfaction of all performance goals established under such Incentive Plan for the Executive, subject to applicable tax withholding. 
  

 4 

 (b) Stock Options. Unless otherwise specified by the Executive in writing, the Company shall pay
in cash to the Executive an amount equal to the difference between the exercise price and the fair market price (which shall be calculated based upon (i) the price of the Company’s stock as determined in connection with the Change in Control
event or (ii) the average Nasdaq trading price of the Company’s stock for the twenty business days preceding the Date of Termination, whichever is higher) of those shares of capital stock of the Company subject to all stock options held,
whether vested or unvested, by the Executive as of the Date of Termination, and the Company shall withhold all appropriate taxes related to such payment. 
  
 (c) Restricted Stock. All unvested restricted stock held by the Executive as of the Date of Termination shall automatically vest as of the Date of
Termination and all certificates representing such restricted stock being held by the Company shall be delivered to the Executive. 
  
 (d) Continuation of Benefits. The Company shall continue for a period of twenty-four (24) months from the Date of Termination to provide the
following benefits to the Executive under COBRA on the same terms as provided to the Executive on the Date of Termination: 
  
 (i) Participation in the Company’s medical, dental and vision plans; and 
  
 (ii) Long-term disability insurance; 
  
 provided however, that any benefits payable under this Section 4(d) shall terminate at such time as the Executive becomes eligible
for similar benefits from any subsequent employer. 
  
 (e)
Parachute Payment. In the event that any lump sum severance payment set forth in this Section 4 either alone or together with other payments which the Executive has the right to receive from the Company, would constitute a “parachute
payment” (as defined in Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)), such lump sum severance payment shall be increased to an amount as will result in the receipt by Executive of the full lump sum
severance payment under this Section 4 net of any excise tax imposed by Section 4999 of the Code. The determination of any increase in the lump sum severance payment under this Section 4 pursuant to the foregoing provision shall be made by a
nationally recognized public accounting firm chosen by the Company in good faith, and such determination shall be conclusive and binding on the Company and the Executive. 
  
 5. Payments Upon Death. In the event of death of the Executive during the term of this Agreement, in addition to any
applicable insurance payable as Executive has designated, the Company shall pay Executive’s estate all salary due as of his death, together with a final payment in an amount equal to twelve (12) months of base salary at the rate in effect at
the time of his death. 
  
 6. No Obligation to Mitigate
Damages; Effect on Other Contractual Rights. 
  
 (a) The
Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor, except as set forth in Section 4(d), shall the amount of any payment provided for under
this Agreement be reduced by any compensation earned by the Executive as the result of employment by another employer after the Date of Termination, or otherwise. 
  
 (b) The provisions of this Agreement, and any payment provided for hereunder, shall not reduce any amounts otherwise
payable, or in any way diminish the Executive’s existing rights, or rights which would accrue solely as a result of the passage of time, under any Benefit Plan, Incentive Plan or Securities Plan, employment agreement or other contract, plan or
arrangement. 
  

 5 

 7. Successors to the Company and Executive. 
  
 (a) The Company will require any successor or assignee (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, expressly, absolutely and unconditionally to
assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. Any failure of the Company to obtain such agreement prior to
the effectiveness of any such succession or assignment shall be a material breach of this Agreement and shall entitle the Executive to terminate the Executive’s employment for Good Reason. As used in this Agreement, “Company” shall
mean the Company as hereinbefore defined and any successor or assignee to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 7 or which otherwise becomes bound by all of the terms and
provisions of this Agreement by operation of law. 
  
 (b) This
Agreement shall inure to the benefit of and be enforceable by the Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amounts
are still payable to him hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designee or, if there be no such designee, to the
Executive’s estate. 
  
 8. Release of Claims. The
obligation of this Agreement shall constitute the only obligations of the Company arising from the Company’s termination of Executive’s employment for any reason. Upon the Company’s tender of payment hereunder the Company shall have
no obligation to Executive by reason of the terms of employment other than those set forth herein, and the Executive agrees that receipt of such payment shall constitute a full and final settlement and release of all claims or rights against the
Company, and Executive shall execute all appropriate agreements reflecting such settlement and release. 
  
 9. Notice. For purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, as follows: 
  
 If to the Company: 
  
 Chief Executive Officer 
 Newport
Corporation 
 1791 Deere Avenue 
 Irvine, CA 92606 
  
 If to the Executive:

  
 __________________ 
 __________________ 
 __________________

  
 or such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
  

 6 

 10. Miscellaneous. 
  
 (a) Amendments. No provisions of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing signed by the Executive and the Company. 
  
 (b) No Waiver. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall
be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
  
 (c) No Reliance. Each party acknowledges that, in entering into this Agreement, it does not do so on the basis of or rely on any representation,
warranty or other provision except as expressly provided in this Agreement. 
  
 (d) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of law provisions. 
  
 (e) Validity. The invalidity or unenforceability of any provisions of
this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
  
 (f) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument. 
  
 (g)
Arbitration, Legal Fees and Expenses. In the event of any controversy, claim or dispute between the parties hereto arising out of or relating to this Agreement, the matter shall be determined by arbitration, which shall take place in Orange
County, California, under the rules of the American Arbitration Association; and a judgment upon such award may be entered in any court having jurisdiction thereof. Any decision or award of such arbitrator shall be final and binding upon the parties
and shall not be appealable. The parties hereby consent to the jurisdiction of such arbitrator and of any court having jurisdiction to enter judgment upon and enforce any action taken by such arbitrator. The Company shall pay all legal fees and
expenses which the Executive may incur as a result of the Company’s contesting the validity, enforceability or the Executive’s interpretation of, or determinations under, this Agreement. 
  
 (h) Confidentiality. The Executive shall retain in confidence any and
all confidential information known to the Executive concerning the Company and its business so long as such information is not otherwise publicly disclosed. 
  
 (i) Entire Agreement. This Agreement contains all of the terms agreed upon between the Executive and the Company with respect to the subject matter
hereof and replaces and supersedes all prior severance compensation or change in control agreements between the Executive and the Company; and the Executive and the Company agree that no term, provision or condition of this Agreement shall be held
to be altered, amended, changed or waived in any respect except by subsequent written agreement of the Executive and the Company. 
  

 7 

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

  

			
	 “COMPANY”
	 	     “EXECUTIVE”

	  
 NEWPORT CORPORATION
	 	 

  

							
	By:	  	  

	  	 	  	  

	 	  	 Robert G. Deuster
 Chairman, President and
 Chief Executive Officer
	  	 	  	 [Name]

  

 8

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