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EXHIBIT 10-E    
    

ELECTRO SCIENTIFIC INDUSTRIES, INC.  

2000 STOCK OPTION INCENTIVE PLAN  

    1.
Purpose. The purpose of this Stock Option Incentive Plan (the "Plan") is to enable Electro Scientific Industries, Inc. (the
"Company") to attract and retain the services of selected employees, officers and directors of the Company or any parent or subsidiary of the Company. For purposes of this Plan, a person is considered
to be employed by or in the service of the Company if the person is employed by or in the service of the Company or any parent or subsidiary of the Company (an "Employer"). 

    2.  Shares Subject to the Plan. Subject to adjustment as provided below and in Section 7, the shares to be offered under the Plan
shall consist of Common Stock of the Company, and the total number of shares of Common Stock that may be issued under the Plan shall be 2,000,000 shares plus any shares that are available for grant
under the Company's 1989 Stock Option Plan as in effect June 23, 2000 (the "1989 Plan") or that may subsequently become available for grant under the 1989 Plan through the expiration,
termination, forfeiture or cancellation of grants. An aggregate of 4,400,000 shares were reserved for issuance under the 1989 Plan. If an option granted under the Plan expires, terminates or is
cancelled, the unissued shares subject to that option shall again be available under the Plan. 

    3.  Effective Date and Duration of Plan. 

    (a)
Effective Date. The Plan shall become effective as of June 23, 2000. No Incentive Stock Option (as defined in
Section 5 below) granted under the Plan shall become exercisable, however, until the Plan is approved by the affirmative vote of the holders of a majority of the shares of Common Stock
represented at a shareholders meeting at which a quorum is present, and the exercise of any Incentive Stock Options granted under the Plan before approval shall be conditioned on and subject to that
approval. Subject to this limitation, options may be granted under the Plan at any time after the effective date and before termination of the Plan. 

    (b)
Duration. The Plan shall continue in effect until all shares available for issuance under the Plan have been issued. The Board of
Directors may suspend or terminate the Plan at any time except with respect to options then outstanding under the Plan. Termination shall not affect any outstanding options. 

    4.
Administration. 

    (a)  Board of Directors. The Plan shall be administered by the Board of Directors of the Company, which shall determine and designate
the individuals to whom awards shall be made, the amount of the awards and the other terms and conditions of the awards. Subject to the provisions of the Plan, the Board of Directors may adopt and
amend rules and regulations relating to administration of the Plan, advance the lapse of any waiting period, accelerate any exercise date and make all other determinations in the judgment of the Board
of Directors necessary or desirable for the administration of the Plan. The interpretation and construction of the provisions of the Plan and related agreements by the Board of Directors shall be
final and conclusive. The Board of Directors may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any related agreement in the manner and to the extent it
deems expedient to carry the Plan into effect, and the Board of Directors shall be the sole and final judge of such expediency. 

    (b)
Committee. The Board of Directors may delegate to any committee of the Board of Directors (the"Committee") any or all authority for
administration of the Plan. If authority is delegated to the Committee, all references to the Board of Directors in the Plan shall mean and relate to the Committee, except (i) as otherwise
provided by the Board of Directors and (ii) that only the Board of Directors may amend or terminate the Plan as provided in Sections 3 and 9. 

 

    (c) Officers. The Board of Directors may delegate to any officer or officers of the Company authority to grant awards under the Plan,
subject to any restrictions imposed by the Board of Directors. 

    5.
Types of Awards, Eligibility, Limitations. The Board of Directors may, from time to time, take the following action, separately or
in combination, under the Plan: (i) grant Incentive Stock Options, as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), as provided in Sections 6(a)
and 6(b) and (ii) grant options other than Incentive Stock Options ("Non-Statutory Stock Options") as provided in Sections 6(a) and 6(c). Awards may be made to employees, including
employees who are officers or directors selected by the Board of Directors; provided, however, that only employees of the Company or any parent or
subsidiary of the Company (as defined in subsections 424(e) and 424(f) of the Code) are eligible to receive Incentive Stock Options under the Plan. The Board of Directors shall select the individuals
to whom awards shall be made and shall specify the action taken with respect to each individual to whom an award is made. At the discretion of the Board of Directors, an individual may be given an
election to surrender an award in exchange for the grant of a new award. No employee may be granted options for more than an aggregate of 500,000 shares of Common Stock in any calendar year; provided,
however, that to the extent the annual limitation is not fully used in any year for an employee, any shares not used may be added to the number of shares for which options may be granted to that
employee in any future year. 

    6.
Option Grants. 

    (a)
General Rules Relating to Options.

    (i)  Terms of Grant. The Board of Directors may grant options under the Plan. With respect to each option grant, the Board of Directors
shall determine the number of shares subject to the option, the exercise price, the period of the option, the time or times at which the option may be exercised and whether the option is an Incentive
Stock Option or a Non-Statutory Stock Option. At the time of the grant of an option or at any time thereafter, the Board of Directors may provide that an optionee who exercised an option
with Common Stock of the Company shall automatically receive a new option to purchase additional shares equal to the number of shares surrendered and may specify the terms and conditions of such new
options. 

    (ii)  Exercise of Options. Except as provided in Section 6(a)(iv) or as determined by the Board of Directors, no option
granted under the Plan may be exercised unless at the time of exercise the optionee is employed by or in the service of the Company and shall have been so employed or provided such service
continuously since the date the option was granted. Except as provided in Sections 6(a)(iv) and 7, options granted under the Plan may be exercised from time to time over the period stated in
each option in amounts and at times prescribed by the Board of Directors, provided that options may not be exercised for fractional shares. Unless otherwise determined by the Board of Directors, if an
optionee does not exercise an option in any one year for the full number of shares to which the optionee is entitled in that year, the optionee's rights shall be cumulative and the optionee may
purchase those shares in any subsequent year during the term of the option. 

    (iii)
Nontransferability. Each Incentive Stock Option and, unless otherwise determined by the Board of Directors, each other option
granted under the Plan by its terms (i) shall be nonassignable and nontransferable by the optionee, either voluntarily or by operation of law, except by will or by the laws
of descent and distribution of the state or country of the optionee's domicile at the time of death, and (ii) during the optionee's lifetime, shall be exercisable only by the optionee. 

    (iv)  Termination of Employment or Service. 

2

 

    (A)
General Rule. Unless otherwise determined by the Board of Directors, if an optionee's employment or service with the Company
terminates for any reason other than because of total disability or death as provided in Sections 6(a)(iv)(B) and (C), his or her option may be exercised at any time before the expiration date of the
option or the expiration of three months after the date of termination, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of
termination. 

    (B)
Termination Because of Total Disability. Unless otherwise determined by the Board of Directors, if an optionee's employment or
service with the Company terminates because of total disability, his or her option may be exercised at any time before the expiration date of the option or before the date 12 months after the
date of termination, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of termination. The term "total disability" means a
medically determinable mental or physical impairment that is expected to result in death or has lasted or is expected to last for a continuous period of 12 months or more and that, in the
opinion of the Company and two independent physicians, causes the optionee to be unable to perform his or her duties as an employee, director, officer or consultant of the Employer and unable to be
engaged in any substantial gainful activity. Total disability shall be deemed to have occurred on the first day after the two independent physicians have furnished their written opinion of total
disability to the Company and the Company has reached an opinion of total disability. 

    (C)  Termination Because of Death. Unless otherwise determined by the Board of Directors, if an optionee dies while employed by or
providing service to the Company, his or her option may be exercised at any time before the expiration date of the option or before the date 12 months after the date of death, whichever is the
shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of death and only by the person or persons to whom the optionee's rights under the option
shall pass by the optionee's will or by the laws of descent and distribution of the state or country of domicile at the time of death. 

    (D)  Amendment of Exercise Period Applicable to Termination. The Board of Directors may at any time extend the three month and
12-month exercise periods any length of time not longer than the original expiration date of the option. The Board of Directors may at any time increase the portion of an option that is
exercisable, subject to terms and conditions determined by the Board of Directors. 

    (E)
Failure to Exercise Option. To the extent that the option of any deceased optionee or any optionee whose employment or service
terminates is not exercised within the applicable period, all further rights to purchase shares pursuant to the option shall cease and terminate. 

    (F)  Leave of Absence. Absence on leave approved by the Employer or on account of illness or disability shall not be deemed a
termination or interruption of employment or service. Unless otherwise determined by the Board of Directors, vesting of options shall continue during a medical, family, military or other leave of
absence, whether paid or unpaid. 

    (G)
Change of Control. In the event an optionee's employment by the Company or by any parent or subsidiary of the Company terminates
within one year after a change in control of the Company for any reason other than retirement, death, or total disability (as defined in Section 6(a)(iv)(B)), any option held by such optionee
may be exercised with respect to all remaining shares subject thereto, free of any limitation on the number of shares with respect to which the option may be exercised in any one year, at any time 

3

 

prior to its expiration date or the expiration of three months after the date of such termination of employment, whichever is the shorter period. A "change in control of the Company" shall mean a
change in control of a nature that would be required to be reported in response to item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as
amended ("Exchange Act"); provided that, without limitation, such a change in control shall be deemed to have occurred if (1) any "person" (as such term is used in Sections 13(d) or 14(d)(2) of
the Exchange Act) is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 20 percent or more of the combined voting power of the Company's then
outstanding securities; or (2) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company cease for any reason
to constitute at least a majority thereof unless the election, or the nomination for election by the Company's shareholders, 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. A change in control of the Company shall not include any change in control pursuant to a
written agreement between the Company and another person, which agreement is approved and adopted by the Board of Directors of the Company or pursuant to any tender offer or exchange offer which the
Board of Directors has in any manner recommended acceptance of to the shareholders of the Company. 

    (v)
Purchase of Shares. Unless the Board of Directors determines otherwise, shares may be acquired pursuant to an option granted under
the Plan only upon the Company's receipt of written notice from the optionee of the optionee's binding commitment to purchase shares, specifying the number of shares the optionee desires to purchase
under the option and the date on which the optionee is obligated to complete the transaction, and, if required to comply with the Securities Act of 1933, containing a representation that it is the
optionee's intention to acquire the shares for investment and not with a view to distribution. Unless the Board of Directors determines otherwise, on or before the date specified for completion of the
purchase of shares pursuant to an option exercise, the optionee must
pay the Company the full purchase price of those shares in cash, check or, in whole or in part, in Common Stock of the Company valued at fair market value, restricted stock or other contingent awards
denominated in either stock or cash, promissory notes and other forms of consideration. Unless otherwise determined by the Board of Directors, any Common Stock provided in payment of the purchase
price must have been previously acquired and held by the optionee for at least six months. The fair market value of Common Stock provided in payment of the purchase price shall be the closing price of
the Common Stock last reported on the date the option is exercised, if the Common Stock is publicly traded, or another value of the Common Stock as specified by the Board of Directors. No shares shall
be issued until full payment for the shares has been made, including all amounts owed for tax withholding. Unless the Board of Directors determines otherwise, an optionee may request the Company to
apply automatically the shares to be received upon the exercise of a portion of a stock option (even though stock certificates have not yet been issued) to satisfy the purchase price for additional
portions of the option. Each optionee who has exercised an option shall, immediately upon notification of the amount due, if any, pay to the Company in cash or check amounts necessary to satisfy any
applicable federal, state and local tax withholding requirements. If additional withholding is or becomes required (as a result of exercise of an option or as a result of disposition of shares
acquired pursuant to exercise of an option) beyond any amount deposited before delivery of the certificates, the optionee shall pay such amount, in cash or check, to the Company on demand. If the
optionee fails to pay the amount demanded, the Company or the Employer may withhold that amount from other amounts payable to the optionee, including salary, subject to applicable law. Unless the
Board of Directors determines 

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otherwise, an optionee may satisfy this obligation, in whole or in part, by instructing the Company to withhold from the shares to be issued upon exercise or by delivering to the Company other shares
of Common Stock; provided, however, that the number of shares so withheld or delivered shall not exceed the minimum amount necessary to satisfy the required withholding obligation. Upon the exercise
of an option, the number of shares reserved for issuance under the Plan shall be reduced by the number of shares issued upon exercise of the option (less the number of any shares surrendered in
payment for the exercise price or withheld to satisfy withholding requirements). 

    (b)
Incentive Stock Options. Incentive Stock Options shall be subject to the following additional terms and conditions: 

    (i)  Limitation on Amount of Grants. If the aggregate fair market value of stock (determined as of the date the option is granted) for
which Incentive Stock Options granted under this Plan (and any other stock incentive plan of the Company or its parent or subsidiary corporations, as defined in subsections 424(e) and 424(f) of the
Code) are exercisable for the first time by an employee during any calendar year exceeds $100,000, the portion of the option or options not exceeding $100,000, to the extent of whole shares, will be
treated as an Incentive Stock Option and the remaining portion of the option or options will be treated as a Non-Statutory Stock Option. The preceding sentence will be applied by taking
options into account in the order in which they were granted. If, under the $100,000 limitation, a portion of an option is treated as an Incentive Stock Option and the remaining portion of the option
is treated as a Non-Statutory Stock Option, unless the optionee designates otherwise at the time of exercise, the optionee's exercise of all or a portion of the option will be treated as
the exercise of the Incentive Stock Option portion of the option to the full extent permitted under the $100,000 limitation.
If an optionee exercises an option that is treated as in part an Incentive Stock Option and in part a Non-Statutory Stock Option, the Company will designate the portion of the stock
acquired pursuant to the exercise of the Incentive Stock Option portion as Incentive Stock Option stock by issuing a separate certificate for that portion of the stock and identifying the certificate
as Incentive Stock Option stock in its stock records. 

    (ii)
Limitations on Grants to 10 Percent Shareholders. An Incentive Stock Option may be granted under the Plan to an employee
possessing more than 10 percent of the total combined voting power of all classes of stock of the Company or any parent or subsidiary (as defined in subsections 424(e) and 424(f) of the Code)
only if the option price is at least 110 percent of the fair market value, as described in Section 6(b)(iv), of the Common Stock subject to the option on the date it is granted and the
option by its terms is not exercisable after the expiration of five years from the date it is granted. 

    (iii)
Duration of Options. Subject to Sections 6(a)(ii), 6(a)(iv) and 6(b)(ii), Incentive Stock Options granted under the Plan
shall continue in effect for the period fixed by the Board of Directors, except that by its terms no Incentive Stock Option shall be exercisable after the expiration of 10 years from the date
it is granted. 

    (iv)  Option Price. The option price per share shall be determined by the Board of Directors at the time of grant. Except as provided in
Section 6(b)(ii), the option price shall not be less than 100 percent of the fair market value of the Common Stock covered by the Incentive Stock Option at the date the option is
granted. The fair market value shall be the closing price of the Common Stock last reported on the date the option is granted, if the stock is publicly traded, or another value of the Common Stock as
specified by the Board of Directors. 

    (v)  Limitation on Time of Grant. No Incentive Stock Option shall be granted on or after the tenth anniversary of the last action by the
Board of Directors approving an increase in the 

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number of shares available for issuance under the Plan, which action was subsequently approved within 12 months by the shareholders. 

    (vi)
Early Dispositions. If within two years after an Incentive Stock Option is granted or within 12 months after an Incentive
Stock Option is exercised, the optionee sells or otherwise disposes of Common Stock acquired on exercise of the Option, the optionee shall within 30 days of the sale or disposition notify the
Company in writing of (i) the date of the sale or disposition, (ii) the amount realized on the sale or disposition and (iii) the nature of the disposition (e.g., sale, gift, etc.) 

    (c)
Non-Statutory Stock Options. Non-Statutory Stock Options shall be subject to the following terms and
conditions, in addition to those set forth in Section 6(a) above: 

    (i)
Option Price. The option price for Non-Statutory Stock Options shall be determined by the Board of Directors at the
time of grant but shall not be less than 100% of the fair market value of the Common Stock covered by the Non-Statutory Option on the date the option is granted. 

    (ii)
Duration of Options. Non-Statutory Stock Options granted under the Plan shall continue in effect for the period fixed
by the Board of Directors. 

    7.
Changes in Capital Structure.

    (a)  Stock Splits, Stock Dividends. If the outstanding Common Stock of the Company is hereafter increased or
decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any stock split, combination of shares, dividend payable in shares,
recapitalization or reclassification, appropriate adjustment shall be made by the Board of Directors in the number and kind of shares available for grants under the Plan and in all other share amounts
set forth in the Plan. In addition, the Board of Directors shall make appropriate adjustment in the number and kind of shares as to which outstanding options, or portions thereof then unexercised,
shall be exercisable, so that the optionee's proportionate interest before and after the occurrence of the event shall be maintained as before the occurrence of such event. Such adjustment in
outstanding options shall be made without change in the total price applicable to the unexercised portion of any option and with a corresponding adjustment in the option price per share.
Notwithstanding the foregoing, the Board of Directors shall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any fractional shares
resulting from any adjustment may be disregarded or provided for in any manner determined by the Board of Directors. Any such adjustments made by the Board of Directors shall be conclusive. 

    (b)
Mergers, Reorganizations, Etc. In the event of a merger, consolidation, plan of exchange, acquisition of
property or stock, split-up, split-off, spin-off, reorganization or liquidation to which the Company is a party or a sale of all or substantially all of the
Company's assets (each, a "Transaction"), the Board of Directors shall, in its sole discretion and to the extent possible under the structure of the Transaction, select one of the following
alternatives for treating outstanding options under the Plan: 

    (i)
Outstanding options shall remain in effect in accordance with their terms. 

    (ii)
Outstanding options shall be converted into options to purchase stock in one or more of the corporations, including the Company, that are the surviving or acquiring corporations
in the Transaction. The amount, type of securities subject thereto and exercise price of the converted options shall be determined by the Board of Directors of the Company, taking into account the
relative values
of the companies involved in the Transaction and the exchange rate, if any, used in determining shares of the surviving corporation(s) to be held by holders of shares of the Company following the
Transaction. Unless otherwise determined by the Board 

6

 

of Directors, the converted options shall be vested only to the extent that the vesting requirements relating to options granted hereunder have been satisfied. 

    (iii)
The Board of Directors shall provide a period of 30 days or less before the completion of the Transaction during which outstanding options may be exercised to the extent
then exercisable, and upon the expiration of that period, all unexercised options shall immediately terminate. The Board of Directors may, in its sole discretion, accelerate the exercisability of
options so that they are exercisable in full during that period. 

    (c)  Dissolution of the Company. In the event of the dissolution of the Company, options shall be treated in
accordance with Section 7(b)(iii). 

    (d)
Rights Issued by Another Corporation. The Board of Directors may also grant options under the Plan with
terms, conditions and provisions that vary from those specified in the Plan, provided that any such awards are granted in substitution for, or in connection with the assumption of, existing options,
granted by another corporation and assumed or otherwise agreed to be provided for by the Company pursuant to or by reason of a Transaction. 

    8.  Option Grants to Non-Employee Directors.

    (a)
Annual Grants. Each Non-Employee Director shall be automatically granted an option to purchase 6,000 shares of Common
Stock on July 31 of each year, provided the Non-Employee Director is a director on such date. A "Non-Employee Director" is a director who is not a full-time
employee of the Company or any of its subsidiaries and has not been a full-time employee of the Company or any of its subsidiaries within one year of any date as of which a determination
of eligibility is made. 

    (b)  Exercise Price. The exercise price of the options granted pursuant to this Section 8 shall be equal to 100 percent of
the fair market value of the Common Stock determined pursuant to paragraph 6(a)(v). 

    (c)
Term of Option. The term of each option granted pursuant to this Section 8 shall be 10 years from the date of grant. 

    (d)
Exercisability. Until an option expires or is terminated and except as provided in Sections 8(e) and 7, an option granted under
this Section 8 shall be exercisable according to the following schedule: 

	Period of Non-Employee Directors' Continuous

Services as a Director of the Company from the

Date the Option is Granted
	 	Portion of Total Option

Which is Exercisable
	 
	Less than 1 year	 	0	%
	After 1 year	 	25	%
	After 2 years	 	50	%
	After 3 years	 	75	%
	After 4 years	 	100	%

    (e)
Termination As a Director. If an optionee ceases to be a director of the Company for any reason, other than death or total
disability (as defined in Section 6(a)(iv)(B)), the option may be exercised at any time prior to the expiration date of the option or the expiration of the three months after the last day the
optionee served as a director, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option as of the last day the optionee served as a director. If
an optionee ceases to be a director of the Company as a result of death or total disability (as defined in Section 6(a)(iv)(B)), the option may be exercised with respect to all remaining shares
subject thereto, free of any limitation on the number of shares with respect to which the option may be exercised in any one year, at any time, prior to the expiration date of the option or the
expiration of one year after the last day the optionee served as a director, whichever is the shorter period. 

7

 

    (f) Exercise of Options. Options may be exercised upon payment of cash or shares of Common Stock of the Company in accordance with
Section 6. 

    (g)  Replaces 1989 Plan. Upon approval of this Option Plan by the shareholders of the Company, this Section 8 shall replace and
supercede paragraph 16 of the Company's 1989 Stock Option Plan. 

    9.
Amendment of the Plan. The Board of Directors may at any time modify or amend the Plan in any respect. Except as provided in
Section 7, however, no change in an award already granted shall be made without the written consent of the holder of the award if the change would adversely affect the holder. 

    10.  Approvals. The Company's obligations under the Plan are subject to the approval of state and federal authorities or agencies with
jurisdiction in the matter. The Company will use its best efforts to take steps required by state or federal law or applicable regulations, including rules and regulations of the Securities and
Exchange Commission and any stock exchange on which the Company's shares may then be listed, in connection with the grants under the Plan. The foregoing notwithstanding, the Company shall not be
obligated to issue or deliver Common Stock under the Plan if such issuance or delivery would violate state or federal securities laws. 

    11.
Employment and Service Rights. Nothing in the Plan or any award pursuant to the Plan shall (i) confer upon any employee any
right to be continued in the employment of an Employer or interfere in any way with the Employer's right to terminate the employee's employment at any time, for any reason, with or without cause, or
to decrease the employee's compensation or benefits, or (ii) confer upon any person engaged by an Employer any right to be retained or employed by the Employer or to the continuation,
extension, renewal or modification of any compensation, contract or arrangement with or by the Employer. 

    12.
Rights as a Shareholder. The recipient of any award under the Plan shall have no rights as a shareholder with respect to any Common
Stock until the date of issue to the recipient of a stock certificate for those shares. Except as otherwise expressly provided in the Plan, no adjustment shall be made for dividends or other rights
for which the record date occurs before the date such stock certificate is issued. 

Adopted:
June 23, 2000. 

8

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EXHIBIT 10-F    
    

INDEMNITY AGREEMENT  

    This
Agreement is made as of                 , by and between Electro Scientific Industries, Inc., an Oregon corporation (the "Corporation"), and
                    ("Indemnitee"), a director and/or officer of the Corporation and/or one or more subsidiaries of the Corporation. 

    WHEREAS,
it is essential to the Corporation to retain and attract as directors and officers of the Corporation and its subsidiaries the most capable persons available; and 

    WHEREAS,
the substantial increase in corporate litigation subjects directors and officers to expensive litigation risks at the same time that the availability of directors' and
officers' liability insurance has been severely limited; and 

    WHEREAS,
it is now and has always been the express policy of the Corporation to indemnify its directors and officers so as to provide them with the maximum possible protection by law;
and 

    WHEREAS,
the Second Restated Articles of Incorporation of the Corporation require indemnification of the officers and directors of the Corporation and its subsidiaries to the fullest
extent permitted by law; the Second Restated Articles and the Oregon Business Corporation Act (the "Act") expressly provide that the indemnification provisions set forth in the Act are not exclusive,
and thereby contemplate that contracts may be entered into between the Corporation and members of the Board of Directors and officers with respect to indemnification of directors and officers; and 

    WHEREAS,
Indemnitee does not regard the protection available under the Corporation's Second Restated Articles of Incorporation, Bylaws and insurance adequate in the present
circumstances, and may not be willing to serve as a director or officer without adequate protection, and the Corporation desires Indemnitee to serve in such capacity. 

    NOW
THEREFORE, the Corporation and Indemnitee agree as follows: 

    1.  Agreement
to Serve. Indemnitee agrees to serve or continue to serve as a director and/or officer of the Corporation and/or its subsidiaries for so long as
Indemnitee is duly elected or appointed or until such time as Indemnitee tenders a resignation in writing. 

    2.  Definitions.
As used in this Agreement: 

    (a)  The
term "Proceeding" shall include any threatened, pending or completed action, suit or proceeding, whether brought in the right of the Corporation or otherwise
and whether of a civil, criminal, administrative or investigative nature, in which Indemnitee may be or may have been involved as a party or otherwise, by reason of the fact that Indemnitee is or was
a director and/or officer of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust
or other enterprise, whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification or reimbursement can be provided under this Agreement. 

    (b)  The
term "Expenses" includes, without limitation thereto, expense of investigations, judicial or administrative proceedings or appeals, amounts paid in settlement
by Indemnitee, attorneys' fees and disbursements and any expenses of establishing a right to indemnification under Section 7 of this Agreement, but shall not include the amount of judgments or
fines against Indemnitee. 

    (c)  References
to "other enterprise" shall include employee benefit plans; references to "fines" shall include any excise tax assessed with respect to any employee
benefit plan; references to "serving at the request of the corporation" shall include any service as a director, officer, 

1

 

employee or agent of the Corporation which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants, or
beneficiaries; and a person who acted in good faith and in a manner reasonably believed to be in the interest of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the
best interests of the Corporation" as referred to in this Agreement. 

    3.  Indemnity
in Third Party Proceedings. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is a party
to or threatened to be made a party to any Proceeding (other than a Proceeding by or in the right of the Corporation to procure a judgment in its favor) against all Expenses, judgments and fines
actually and reasonably incurred by Indemnitee in connection with such Proceeding, but only if Indemnitee acted in good faith and in a manner which Indemnitee reasonably believed to be in or not
opposed to the best interests of the Corporation and, in the case of a criminal proceeding, in addition, had no reasonable cause to believe that Indemnitee's conduct was unlawful. The termination of
any such Proceeding by judgment, order of court, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in
good faith and in a manner which Indemnitee reasonably believed to be in the best interests of the Corporation, and with respect to any criminal proceeding, that such person had reasonable cause to
believe that Indemnitee's conduct was unlawful. 

    4.  Indemnity
in Proceedings By or In the Right of the Corporation. The Corporation shall indemnify Indemnitee in accordance with the provisions of this
Section 4 if Indemnitee is a party to or threatened to be made a party to any Proceedings by or in the right of the Corporation to procure a judgment in its favor against all Expenses actually
and reasonably incurred by Indemnitee in connection with the defense or settlement of such Proceeding, but only if Indemnitee acted in good faith and in a manner which Indemnitee reasonably believed
to be in or not opposed to the best interests of the Corporation, except that no indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to
which such person shall have been finally adjudged by a court to be liable for negligence or misconduct in the performance of Indemnitee's duty to the Corporation, unless and only to the extent that
any court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and
reasonably entitled to indemnity. 

    5.  Indemnification
of Expenses of Successful Party. Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee has been successful on the
merits or otherwise, in defense of any Proceeding or in defense of any claim, issue or matter therein, including the dismissal of an action without prejudice, Indemnitee shall be indemnified against
all Expenses incurred in connection therewith. 

    6.  Advances
of Expenses. The Expenses incurred by Indemnitee pursuant to Sections 3, 4 and 8 in any Proceeding shall be paid by the Corporation in advance of the final
disposition of the Proceeding at the written request of Indemnitee, if Indemnitee shall undertake to repay such amount to the extent that it is ultimately determined by a court that Indemnitee is not
entitled to indemnification. Such advances shall be made without regard to Indemnitee's ability to repay such expenses. 

    7.  Right
of Indemnitee to Indemnification Upon Application; Procedure Upon Application. Any indemnification or advance under Sections 3, 4, 6 or 8 shall be made no
later than 45 days after receipt of the written request of Indemnitee, unless a determination is made within such 45 days period by (a) the Board of Directors by a majority vote
of a quorum consisting of directors who were not parties to such proceeding, or (b) independent legal counsel in a written opinion (which counsel shall be
appointed if such a quorum is not obtainable), that the Indemnitee has not met the relevant standards for indemnification set forth in 3, 4, or 8. 

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    The right to indemnification or advances as provided by this Agreement shall be enforceable by Indemnitee in any court of competent jurisdiction. The burden of proving that
indemnification or advances are not appropriate shall be on the Corporation. Neither the failure of the Corporation (including its Board of Directors or independent legal counsel) to have made a
determination prior to the commencement of such action that indemnification or advances are proper in the circumstances because Indemnitee has met the applicable standard of conduct nor an actual
determination by the Corporation (including its Board of Directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or
create a presumption that Indemnitee has not met the applicable standard of conduct. Indemnitee's expenses incurred in connection with successfully establishing Indemnitee's right to indemnification
or advances, in whole or in part, in any such Proceeding shall also be indemnified by the Corporation. 

    8.  Additional
Indemnification. 

    (a)  Notwithstanding
any limitation in Sections 3 or 4, the Corporation shall indemnify Indemnitee to the fullest extent permitted by law in accordance with the
provisions of this Section 8(a) if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Corporation to procure a
judgment in its favor) involving a claim against Indemnitee for breach of fiduciary duty by Indemnitee against all Expenses and judgments actually and reasonably incurred by Indemnitee in connection
with such Proceeding, provided that no indemnity shall be made under this Section 8(a) on account of Indemnitee's conduct which constitutes a breach of Indemnitee's duty of loyalty to the
Corporation or its stockholders or is an act or omission not in good faith or which involves intentional misconduct or a knowing violation of the law. 

    (b)  Notwithstanding
any limitation in Sections 3, 4 or 8(a), the Corporation shall indemnify Indemnitee with respect to any Proceeding against Expenses, judgments and
fines to the fullest extent permitted by the Act, including the nonexclusivity provision of ORS 57.260(3) and including any amendments to the Act adopted after the date hereof that may increase the
extent to which a corporation may indemnify its officers and directors. 

    (c)  The
indemnification provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under the Second Restated
Articles of Incorporation, the Bylaws, any other agreement, any vote of shareholders or directors, the Act, or otherwise, both as to action in Indemnitee's official capacity and as to action in
another capacity while holding such office. The indemnification under this Agreement shall continue as to Indemnitee even though Indemnitee may
have ceased to be a director or officer and shall inure to the benefit of the heirs and personal representatives of Indemnitee. 

    9.  Exclusions.
Notwithstanding any provision in this Agreement other than Section 5, the Corporation shall not be obligated under this Agreement to make any
payment in connection with any claim made against Indemnitee: 

    (a)  for
which payment is required to be made to or on behalf of Indemnitee under any insurance policy, except with respect to any excess beyond the amount of payment
under such insurance; 

    (b)  for
any transaction from which Indemnitee derived an improper personal benefit; or 

    (c)  for
an accounting of profits made from the purchase and sale by Indemnitee of securities of the Corporation within the meaning of Section 16(b) of the
Securities Exchange Act of 1934 and amendments thereto or similar provisions of any state statutory law or common law. 

    10.  Partial
Indemnification. If Indemnitee is entitled under any provisions of this Agreement to indemnification by the Corporation for some or a portion of the
Expenses, judgments and fines actually 

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and reasonably incurred by Indemnitee in the investigation, defense, appeal or settlement of any Proceeding but not, however, for the total amount thereof, the Corporation shall nevertheless indemnify
Indemnitee for the portion of such Expenses, judgments or fines to which Indemnitee is entitled. 

    11.  Business
Transactions. The Corporation agrees that it will not effect any Business Transaction (as defined in Article VIII of the Second Restated Articles
of Incorporation of the Corporation) which has not been approved by a majority vote of the Continuing Directors as defined in such Article VIII, unless the other party to the transaction agrees
in writing to (a) use its best efforts to maintain for the subsequent two year period any and all directors' and officers' liability insurance in effect prior to any discussions or announcement
relating to such Business Transaction and (b) assume all obligations of the Corporation under this Agreement and indemnify Indemnitee and advance litigation expenses in accordance with this
Agreement. 

    12.  Severability.
If this Agreement or any portion thereof shall be invalidated on any ground by any court of competent jurisdiction, then the Corporation shall
nevertheless indemnify Indemnitee as to
Expenses, judgments and fines with respect to any Proceeding to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated or by any other applicable
law. 

    13.  Notice.
Indemnitee shall, as a condition precedent to Indemnitee's right to be indemnified under this Agreement, give to the Corporation notice in writing as soon
as practicable of any claim made against Indemnitee for which indemnity will or could be sought under this Agreement. Notice to the Corporation shall be directed to Electro Scientific
Industries, Inc., 13900 NW Science Park Drive, Portland, Oregon 97229, Attention: Corporate Secretary (or such other address as the Corporation shall designate in writing to Indemnitee). Notice
shall be deemed received three days after the date postmarked if sent by prepaid mail, properly addressed. In addition, Indemnitee shall give the Corporation such information and cooperation as it may
reasonably require as shall be within Indemnitee's power. 

    14.  Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall constitute the original. 

    15.  Applicable
Law. This Agreement shall be governed by and construed in accordance with Oregon law. 

    16.  Successors
and Assigns. This Agreement shall be binding upon the Corporation and its successors and assigns. 

    IN
WITNESS WHEREOF, the parties hereby have caused this Agreement to be duly executed and signed as of the day and year first above written. 

	ELECTRO SCIENTIFIC INDUSTRIES, INC.	 	 
	 	 	 
	 	 	 
	
	 	 
	Donald R. VanLuvanee

CEO and President	 	 
	 	 	 
	 	 	 
	INDEMNITEE	 	 
	 	 	 
	 	 	 
	
	 	 
	Name	 	 

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EXHIBIT 10-F

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