Document:

Registrant's 2000 Director Stock Option Plan

 EXHIBIT 10.2 
 NANOMETRICS INCORPORATED 
 2000 DIRECTOR STOCK OPTION PLAN 
 (as amended and restated on March 7, 2007) 
 1.    Purpose of the Plan. The purposes of this 2000 Director Option Plan are to attract and retain the best available personnel to serve as Outside Directors of the Company, to provide additional incentives to
the Outside Directors of the Company to serve as Directors, and to encourage their continued service on the Board. 
 All options granted
hereunder shall be “non-statutory stock options”. 
 2.    Definitions. As used herein, the following
definitions shall apply: 
 (a)    “Board” means the Board of Directors of the Company. 
 (b)    “Code” means the Internal Revenue Code of 1986, as amended. 
 (c)    “Common Stock” means the Common Stock of the Company. 
 (d)    “Company” means Nanometrics Incorporated, a Delaware corporation. 
 (e)    “Continuous Status as a Director” means the absence of any interruption or termination of service as a
Director. 
 (f)    “Director” means a member of the Board. 
 (g)    “Employee” means any person, including officers and Directors, employed by the Company or any Parent or
Subsidiary of the Company. The payment of a Director’s fee by the Company shall not be sufficient in and of itself to constitute "employment" by the Company. 
 (h)    “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (i)    “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
 (i)    If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the National Market System of the National Association of Securities Dealers, Inc.
Automated Quotation (“NASDAQ”) System, the Fair Market Value of a Share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such system or exchange (or the
exchange with the greatest volume of trading in Common Stock) on the day of determination, as reported in the Wall Street Journal or such other source as the Board deems reliable; 

 (ii)    If the Common Stock is quoted on the NASDAQ System (but not on the National
Market System thereof) or regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on
the day of determination, as reported in the Wall Street Journal or such other source as the Board deems reliable, or; 
 (iii)    In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 
 (j)    “Option” means a stock option granted pursuant to the Plan. 
 (k)    “Optioned Stock” means the Common Stock subject to an Option. 
 (l)    “Optionee” means an Outside Director who receives an Option. 
 (m)    “Outside Director” means a Director who is not an Employee, or who is not the beneficial owner of more than
50% of the Company’s outstanding stock. 
 (n)    “Parent” means a “parent corporation”,
whether now or hereafter existing, as defined in Section 424 (e) of the Code. 
 (o)    “Plan”
means this 2000 Director Option Plan. 
 (p)    “Share” means a share of the Common Stock, as adjusted
in accordance with Section 10 of the Plan. 
 (q)    “Subsidiary” means a “subsidiary
corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
 3.    Stock
Subject to the Plan. Subject to the provisions of Section 10 of the Plan, the maximum aggregate number of Shares which may be optioned and sold under the Plan is two hundred fifty thousand (250,000) Shares (the "Pool") of Common
Stock. The Shares may be authorized but unissued, or reacquired Common Stock. 
 If an Option should expire or become unexercisable for any
reason without having been exercised in full, the unpurchased Shares that were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan (unless the Plan has terminated). Shares that have
actually been issued under the Plan shall not be returned to the Plan and shall not become available for future distribution under the Plan. 
 4.    Administration of and Grants of Options under the Plan. 
 (a)    Procedure
for Grants. Except as otherwise required herein, the Plan shall be administered by the Board. All grants of options to Outside Directors under this Plan shall be automatic and non-discretionary and shall be made strictly in accordance with the
following provisions: 
  

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 (i)    No person shall have any discretion to select which Outside Directors shall
be granted Options or to determine the number of shares to be covered by Options granted to Outside Directors; provided, however, that nothing in this Plan shall be construed to prevent an Outside Director from declining to receive an Option under
this Plan. 
 (ii)    Each Outside Director shall be automatically granted an Option to purchase ten thousand
(10,000) Shares on the date on which such person first becomes a Director, whether through election by the shareholders of the Company or appointment by the Board to fill a vacancy; 
 (iii)    On the second business day of each fiscal quarter during the term of this Director Plan, each Outside Director shall
automatically receive an Option to purchase two thousand five hundred (2,500) Shares, provided that he or she has been an Outside Director for at least six (6) months on such dates; 
 (iv)    The terms of an Option granted pursuant to this Section shall be as follows: 
 (A)    the term of the Option shall be five (5) years; 
 (B)    except as provided in Section 10 of this Plan, the Option shall be exercisable only while the Outside Director remains a
director; 
 (C)    the exercise price per share of Common Stock shall be 100% of the Fair Market Value on the date of
grant of the Option; 
 (D)    the Option shall become exercisable in installments cumulatively with respect to
thirty-three and one-third (33-1/3%) of the Optioned Stock one year after the date of grant and as to an additional thirty-three and one-third (33-1/3%) of the Optioned Stock each year thereafter, so that one hundred percent (100%) of the
Optioned Stock shall be exercisable three years after the date of grant; provided, however, that in no event shall any Option be exercisable prior to obtaining shareholder approval of the Plan. 
 (v)    In the event that any Option granted under the Plan would cause the number of Shares subject to outstanding Options plus the
number of Shares previously purchased upon exercise of Options to exceed the Pool, then each such automatic grant shall be for that number of Shares determined by dividing the total number of Shares remaining available for grant by the number of
Outside Directors on the automatic grant date. No further grants shall be made until such time, if any, as additional Shares become available for grant under the Plan through action of the shareholders to increase the number of Shares which may be
issued under the Plan or through cancellation or expiration of Options previously granted hereunder. 
 (b)    Powers
of the Board. Subject to the provisions and restrictions of the Plan, the Board shall have the authority, in its discretion: (i) to determine, upon review of relevant information and in accordance with y Section 2(i) of the Plan, the
Fair Market Value of the Common Stock; (ii) to interpret the Plan; (iii) to prescribe, amend and rescind rules and regulations relating to the Plan; (iv) to authorize any person to execute on behalf of the Company any instrument
required 

  

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to effectuate the grant of an Option previously granted hereunder; and (v) to make all other determinations deemed necessary or advisable for the
administration of the Plan. 
 (c)    Effect of Board’s Decision. All decisions, determinations and
interpretations of the Board shall be final. 
 5.    Eligibility. Options may be granted only to Outside
Directors. All Options shall be automatically granted in accordance with the terms set forth in Section 4(b) hereof. An Outside Director who has been granted an Option may, if he is otherwise eligible, be granted an additional Option or Options
in accordance with such provisions. 
 The Plan shall not confer upon any Optionee any right with respect to continuation of service as a
Director or nomination to serve as a Director, nor shall it interfere in any way with any rights which the Director or the Company may have to terminate his directorship at any time. 
 6.    Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by
the shareholders of the Company as described in Section 1616 of the Plan. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 11 of the Plan. 
 7.    Exercise Price and Consideration. 
 (a)    Exercise Price. The per Share exercise price for Optioned Stock shall be 100% of the Fair Market Value per Share on the date of grant of the Option. 
 (b)    Form of Consideration. The consideration to be paid for the Shares to be issued upon exercise of an Option, including
the method of payment, shall be determined by the Board and may consist entirely of (i) cash, (ii) check, (iii) promissory note, (iv) other shares which have a Fair Market Value on the date of surrender equal to the aggregate
exercise price of the Shares as to which said Option shall be exercised and which, in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than twelve (12) months on the date of surrender,
(v) delivery of a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company the amount of sale or loan proceeds required to pay the exercise price, (vi) delivery of an
irrevocable subscription agreement for the Shares which irrevocably obligates the Optionee to take and pay for the Shares not more than twelve (12) months after the date of delivery of the subscription agreement, (vii) any combination of
the foregoing methods of payment, or (viii) such other consideration and method of payment for the issuance of Shares to the extent permitted under applicable law. 
 8.    Exercise of Option. 
 (a)    Procedure for Exercise;
Rights as a Shareholder. Any Option granted hereunder shall be exercisable at such times as are set forth in Section 4 hereof; provided, however, that no Options shall be exercisable until shareholder approval of the Plan in accordance with
Section 16 hereof has been obtained. 
  

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 An Option may not be exercised for a fraction of a Share. 
 An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option
by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may consist of any consideration and method of payment allowable under
Section 7(b) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive
dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. A share certificate for the number of Shares so acquired shall be issued to the Optionee as soon as
practicable after exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan. 
 Exercise of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes of the Plan
and for sale under the Option, by the number of Shares as to which the Option is exercised. 
 (b)    Termination of
Continuous Status as a Director. In the event an Optionee’s Continuous Status as a Director terminates (other than upon the Optionee’s death or total and permanent disability (as defined in Section 22(e)(3) of the Code)), the
Optionee may exercise his or her Option, but only within three (3) months from the date of such termination, and only to the extent that the Optionee was entitled to exercise it at the date of such termination (but in no event later than the
expiration of its five (5) year term). To the extent that the Optionee was not entitled to exercise an Option at the date of such termination, and to the extent that the Optionee does not exercise such Option (to the extent otherwise so
entitled) within the time specified herein, the Option shall terminate. 
 (c)    Disability of Optionee. In the
event Optionee’s Continuous Status as a Director terminates as a result of total and permanent disability (as defined in Section 22(e)(3) of the Code), the Optionee may exercise his or her Option, but only within twelve (12) months
from the date of such termination, and only to the extent that the Optionee was entitled to exercise it at the date of such termination (but in no event later than the expiration of its five (5) year term). To the extent that the Optionee was
not entitled to exercise an Option at the date of termination, or if he or she does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
 (d)    Death of Optionee. In the event of an Optionee’s death, the Optionee’s estate or a person who acquired the
right to exercise the Option by bequest or inheritance may exercise the Option, but only within twelve (12) months following the date of death, and only to the extent that the Optionee was entitled to exercise it at the date of death (but in no
event later than the expiration of its five (5) year term). To the extent that the Optionee was not entitled to exercise an Option at the date of death, and to the extent that the Optionee’s estate or a person who acquired the right to
exercise such Option does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
  

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 9.    Non-Transferability of Options. The Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. 
 10.    Adjustments. 
 (a)    Changes in Capitalization. In the event that the stock of the Company is changed by reason of any stock split, reverse stock split, recapitalization, or other change in the capital structure of the Company,
or converted into or exchanged for other securities as a result of any merger, consolidation or reorganization, or in the event that the outstanding number of shares of stock of the Company is increased through payment of a stock dividend,
appropriate proportionate adjustments shall be made in the number and class of shares of stock subject to the Plan, the number and class of shares subject to the Plan, the number and class of share subject to any Option outstanding under the Plan,
and the exercise price of any such outstanding Option; provided, however, that the Company shall not be required to issue fractional shares as a result of any such adjustment. Any such adjustment shall be made upon approval by the Board, whose
determination shall be conclusive. If there is any other change in the number or type of the outstanding shares of stock of the Company, or of any other security into which such stock shall have been changed or for which it shall have been
exchanged, and if the Board in its sole discretion determines that such change equitably requires an adjustment in the Options then outstanding under the Plan, such adjustment shall be made in accordance with the determination of the Board. No
adjustments shall be required by reason of the issuance or sale by the Company for cash or other consideration of additional shares of its stock or securities convertible into or exchangeable for shares of its stock. 
 (b)    Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, to the extent that
an Option has not been previously exercised, it shall terminate immediately prior to the consummation of such proposed action. 
 (c)    Merger or Asset Sale. In the event of a merger of the Company with or into another corporation which does not constitute a “Change of Control” (as defined in Section (e)) or the sale
of substantially all of the assets of the Company, outstanding Options may be assumed or equivalent options may be substituted by the successor corporation or a Parent or Subsidiary thereof (the “Successor Corporation”). If an
Option is assumed or substituted for, the Option or equivalent option shall continue to be exercisable as provided in Section 4 hereof for so long as the Optionee serves as a Director or a director of the Successor Corporation. If the Successor
Corporation does not assume an outstanding Option or substitute for it an equivalent option, the Option shall become fully vested and exercisable, including as to Shares for which it would not otherwise be exercisable. In such event the Board shall
notify the Optionee that the Option shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and upon the expiration of such period the Option shall terminate. 
 For the purposes of this Section 10(c), an Option shall be considered assumed if, following the merger or sale of assets, the Option confers the
right to purchase or receive, for each Share of Optioned Stock subject to the Option immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets
by holders of Common Stock for each Share held on the effective date of the transaction (and 

  

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if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares). If such
consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the
exercise of the Option, for each Share of Optioned Stock subject to the Option, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the
merger or sale of assets. 
 (d)    Vesting Acceleration on Change of Control. In the event of a “Change of
Control,” all of the Optionee’s rights to purchase stock under all option agreements with the Company pursuant to the Plan shall be automatically vested in their entirety on an accelerated basis and be fully exercisable: 
 (i)    as of the date immediately preceding such “Change of Control” in the event any such option agreement is or will be
terminated or canceled (except by mutual consent) or any successor to the Company fails to assume and agree to perform all such option agreements; or 
 (ii)    as of the date immediately preceding such "Change of Control" in the event the Optionee does not or will not receive upon exercise of the Optionee’s stock purchase rights under any
such option agreement the same identical securities and/or other consideration as is received by all other shareholders in any merger, consolidation, sale, exchange or similar transaction occurring upon or after such “Change of Control”;
or 
 (iii)    as of the date Optionee’s status as a Director or director of the Successor Corporation, as
applicable, is terminated other than upon a voluntary resignation by the Optionee occurring upon or after any such "Change of Control"; whichever shall first occur (all quoted terms as defined below). 
 (e)    Change of Control. “Change of Control” means the occurrence of any of the following events: 
 (i)    Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended),
or group of “persons” acting in concert, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by
the Company’s then outstanding voting securities; or 
 (ii)    A change in the composition of the Board of
Directors of the Company as a result of which fewer than a majority of the directors are “Incumbent Directors.” “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date
hereof, or (B) are elected, or nominated for election, to the Board of Directors with the affirmative votes (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for election
as a director without objection to such nomination) of at least three-quarters of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or
threatened proxy contest relating to the election of directors of the Company); or 
  

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 (iii)    The shareholders of the Company approve a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or such surviving entity’s parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or such surviving
entity’s parent outstanding immediately after such merger or consolidation, or the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or
substantially all the Company’s assets. 
 11.    Amendment and Termination of the Plan. 
 (a)    Amendment and Termination. The Board may at any time amend, alter, suspend, or discontinue the Plan, but no amendment,
alteration, suspension, or discontinuation shall be made which would impair the rights of any Optionee under any grant theretofore made, without his or her consent. In addition, to the extent necessary and desirable to comply with Rule 16b-3 under
the Exchange Act (or any other applicable law or regulation), the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required. 
 (b)    Effect of Amendment or Termination. Any such amendment or termination of the Plan shall not affect Options already
granted and such Options shall remain in full force and effect as if this Plan had not been amended or terminated. 
 12.    Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date determined in accordance with Section 4(b) hereof. Notice of the determination shall be given to each
Outside Director to whom an Option is so granted within a reasonable time after the date of such grant. 
 13.    Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall
comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, state securities laws, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares, if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned relevant provisions of law. 
 Inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
  

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 14.    Reservation of Shares. The Company, during the term of this Plan, will
at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
 15.    Option Agreement. Options shall be evidenced by written option agreements in such form as the Board shall approve. 
 16.    Shareholder Approval. Continuance of the Plan shall be subject to approval by the shareholders of the Company at or prior to the first annual meeting of shareholders held subsequent
to the granting of an Option hereunder. Such shareholder approval shall be obtained in the degree and manner required under applicable state and federal law. 
  

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 NANOMETRICS INCORPORATED 
 2000 DIRECTOR STOCK OPTION PLAN 
 DIRECTOR STOCK OPTION AGREEMENT

 Nanometrics Incorporated, (the “Company”), has granted to ____________ (the “Optionee”), an option
to purchase a total of ten thousand (10,000) shares of the Company’s Common Stock (the “Optioned Stock”), at the price determined as provided herein, and in all respects subject to the terms, definitions and provisions of
the Company’s 2000 Director Stock Option Plan (the “Plan”) adopted by the Company which is incorporated herein by reference. The terms defined in the Plan shall have the same defined meanings herein. 
 1.    Nature of the Option. This Option is a nonstatutory option and is not intended to qualify for any special tax benefits
to the Optionee. 
 2.    Exercise Price. The exercise price is $______ for each share of Common Stock.

 3.    Exercise of Option. This Option shall be exercisable during its term in accordance with the provisions of
Section 8 of the Plan as follows: 
 (i)    Right to Exercise. 
 (a)    This Option shall become exercisable in installments cumulatively with respect to thirty-three percent (33%) of the
Optioned Stock one year after the date of grant, and as to an additional thirty-three percent (33%) of the Optioned Stock on each anniversary of the date of grant, so that one hundred percent (100%) of the Optioned Stock shall be
exercisable three (3) years after the date of grant; provided, however, that in no event shall any Option be exercisable prior to the date the shareholders of the Company approve the Plan. 
 (b)    This Option may not be exercised for a fraction of a share. 
 (c)    In the event of Optionee’s death, disability or other termination of service as a Director, the exercisability of the
Option is governed by Section 8 of the Plan. 
 (ii)    Method of Exercise. This Option shall be exercisable
by written notice which shall state the election to exercise the Option and the number of Shares in respect of which the Option is being exercised. Such written notice, in the form attached hereto as Exhibit A, shall be signed by the Optionee and
shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the exercise price. 
 4.    Method of Payment. Payment of the exercise price shall be by any of the following, or a combination thereof, at the election of the Optionee: 
  

 (i)    cash; 
 (ii)    check; or 
 (iii)    promissory note: or 
 (iv)    surrender of other shares which (x) in the case
of Shares acquired upon exercise of an Option, have been owned by the Optionee for more than twelve (12) months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of
the Shares as to which said Option shall be exercised; or 
 (v)    delivery of a properly executed exercise notice
together with such other documentation as the Company and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price; or 
 (vi)    delivery of an irrevocable subscription agreement for the Shares which irrevocably obligates the Optionee to take and pay for
the Shares not more than twelve (12) months after the date of delivery of the subscription agreement; or 
 (vii)    any combination of the foregoing methods of payment; or 
 (viii)    such other
consideration and method of payment for the issuance of Shares to the extent permitted under applicable law. 
 5.    Restrictions on Exercise. This Option may not be exercised if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any
applicable federal or state securities or other law or regulations, or if such issuance would not comply with the requirements of any stock exchange upon which the Shares may then be listed. As a condition to the exercise of this Option, the Company
may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 
 6.    Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by
the Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 
 7.    Term of Option. This Option may not be exercised more than ten (10) years from the date of grant of this Option, and may be exercised during such period only in accordance with the Plan and the terms of
this Option. 
 8.    Taxation Upon Exercise of Option. Optionee understands that, upon exercise of this Option,
he or she will recognize income for tax purposes in an amount equal to the excess of the then Fair Market Value of the Shares purchased over the exercise price paid for such Shares. Since the Optionee is subject to Section 16(b) of the
Securities Exchange Act of 1934, as amended, under certain limited circumstances the measurement and timing of such income (and the commencement 

  

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of any capital gain holding period) may be deferred, and the Optionee is advised to contact a tax advisor concerning the application of Section 83 in
general and the availability a Section 83(b) election in particular in connection with the exercise of the Option. Upon a resale of such Shares by the Optionee, any difference between the sale price and the Fair Market Value of the Shares on
the date of exercise of the Option, to the extent not included in income as described above, will be treated as capital gain or loss. 
  

									
					
	DATE OF GRANT:	 	  	 		 		 	

  

			
	 Nanometrics Incorporated,
 a California
corporation

		
	By:	 	  

 Optionee acknowledges receipt of a copy of the Plan, a copy of which is attached hereto, and
represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof. Optionee hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Board upon any questions arising under the Plan. 
  

									
					
	Dated:	 	  	 		 		 	

  

			
	
	
	  
	Optionee

  

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 EXHIBIT A 
 DIRECTOR STOCK OPTION EXERCISE NOTICE 
 Nanometrics Incorporated 
 [Address] 
 Attention: Corporate Secretary 
 1.    Exercise of Option. The undersigned (“Optionee”) hereby elects to exercise Optionee’s option to
purchase ______ shares of the Common Stock (the “Shares”) of Nanometrics Incorporated (the “Company”) under and pursuant to the Company’s 2000 Director Option Plan and the Director Option Agreement dated
________________ (the “Agreement”) . 
 2.    Representations of Optionee. Optionee acknowledges
that Optionee has received, read and understood the Agreement. 
 3.    Federal Restrictions on Transfer. Optionee
understands that the Shares must be held indefinitely unless they are registered under the Securities Act of 1933, as amended (the “1933 Act”), or unless an exemption from such registration is available, and that the certificate(s)
representing the Shares may bear a legend to that effect. Optionee understands that the Company is under no obligation to register the Shares and that an exemption may not be available or may not permit Optionee to transfer Shares in the amounts or
at the times proposed by Optionee. 
 4.    Tax Consequences. Optionee understands that Optionee may suffer
adverse tax consequences as a result of Optionee’s purchase or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultant (s) Optionee deems advisable in connection with the purchase or disposition
of the Shares and that Optionee is not relying on the Company for any tax advice. 
 5.    Delivery of Payment.
Optionee herewith delivers to the Company the aggregate purchase price for the Shares that Optionee has elected to purchase and has made provision for the payment of any federal or state withholding taxes required to be paid or withheld by the
Company. 
  

 6.    Entire Agreement. The Agreement is incorporated herein by reference.
This Exercise Notice and the Agreement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof. This Exercise Notice
and the Agreement are governed by California law except for that body of law pertaining to conflict of laws. 
  

									
	 Submitted by:
  
 OPTIONEE:
	 		 	 Accepted by:
  
 NANOMETRICS INCORPORATED

					
	By:	 	  	 		 	By:	 	  
					
		 		 		 	Its:	 	  

  

			
		
	Address:	 	  
	
	  

									
					
	Dated:	 	  	 		 	Dated:	 	  

  

 2Registrant's 2002 Nonstatutory Stock Option Plan

 EXHIBIT 10.3 
 NANOMETRICS INCORPORATED 
 2002 NONSTATUTORY STOCK OPTION PLAN 
 (as amended and restated on March 7, 2007) 
 1.    Purposes of the Plan. The purposes of this Nonstatutory Stock Option Plan are: 
  

	 	•	 	 to attract and retain the best available personnel for positions of substantial responsibility, 

  

	 	•	 	 to provide additional incentive to Employees, and 

  

	 	•	 	 to promote the success of the Company’s business. 

 Options granted under the Plan will be Nonstatutory Stock Options. 
 2.    Definitions. As used herein, the following definitions shall apply: 
 (a)    “Administrator” means the Board or any of its Committees as shall be administering the Plan, in accordance with
Section 4 of the Plan. 
 (b)    “Applicable Laws” means the requirements relating to the administration
of stock option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or
jurisdiction where Options are, or will be, granted under the Plan. 
 (c)    “Board” means the Board of
Directors of the Company. 
 (d)    “Code” means the Internal Revenue Code of 1986, as amended. 
 (e)    “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan.

 (f)    “Common Stock” means the Common Stock of the Company. 
 (g)    “Company” means Nanometrics Incorporated, a Delaware corporation. 
 (h)    “Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render
services to such entity. 
 (i)    “Director” means a member of the Board. 

 (j)    “Disability” means total and permanent disability as defined in
Section 22(e)(3) of the Code. 
 (k)    “Employee” means any person employed by the Company or any Parent
or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, any
Subsidiary, or any successor. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute "employment" by the Company. 
 (l)    “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (m)    “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
 (i)    If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the
Nasdaq Global Market, the Nasdaq Select Market or the Nasdaq Capital Market, its Fair Market Value shall be the closing sales price for such stock (or if the closing sales price was reported on that date, as applicable, on the last trading date such
closing sales price was reported) as quoted on such exchange or system, on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (ii)    If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such
bids and asks were reported); or 
 (iii)    In the absence of an established market for the Common Stock, the Fair
Market Value shall be determined in good faith by the Administrator. 
 (n)    “Notice of Grant” means a
written or electronic notice evidencing certain terms and conditions of an individual Option grant. The Notice of Grant is part of the Option Agreement. 
 (o)    “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

 (p)    “Option” means a nonstatutory stock option granted pursuant to the Plan, that is not intended to
qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 (q)    “Option Agreement” means an agreement between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of
the Plan. 
  

 2 

 (r)    “Option Exchange Program” means a program whereby outstanding
options are surrendered in exchange for options with a lower exercise price. 
 (s)    “Optioned Stock” means
the Common Stock subject to an Option. 
 (t)    “Optionee” means the holder of an outstanding Option granted
under the Plan. 
 (u)    “Parent” means a “parent corporation,” whether now or hereafter existing,
as defined in Section 424(e) of the Code. 
 (v)    “Plan” means this 2002 Nonstatutory Stock Option Plan.

 (w)    “Service Provider” means an Employee including an Officer, Consultant or Director. 
 (x)    “Share” means a share of the Common Stock, as adjusted in accordance with Section 12 of the Plan. 

(y)    “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in
Section 424(f) of the Code. 
 3.    Stock Subject to the Plan. Subject to the provisions of Section 12
of the Plan, the maximum aggregate number of Shares which may be optioned and sold under the Plan is one million two hundred thousand (1,200,000) Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. 
 If an Option expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the
unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). 
 4.    Administration of the Plan. 
 (a)    Administration. The Plan shall be
administered by (i) the Board or (ii) a Committee, which committee shall be constituted to satisfy Applicable Laws. 
 (b)    Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator shall have the
authority, in its discretion: 
 (i)    to determine the Fair Market Value of the Common Stock; 
 (ii)    to select the Service Providers to whom Options may be granted hereunder; 
 (iii)    to determine whether and to what extent Options are granted hereunder; 
  

 3 

 (iv)    to determine the number of shares of Common Stock to be covered by each
Option granted hereunder; 
 (v)    to approve forms of agreement for use under the Plan; 
 (vi)    to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder. Such
terms and conditions include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any
restriction or limitation regarding any Option or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 
 (vii)    to reduce the exercise price of any Option to the then current Fair Market Value if the Fair Market Value of the Common
Stock covered by such Option shall have declined since the date the Option was granted; 
 (viii)    to institute an
Option Exchange Program; 
 (ix)    to construe and interpret the terms of the Plan and awards granted pursuant to the
Plan; 
 (x)    to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 
 (xi)    to modify or amend each Option (subject to Section 14(b) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Options longer than is otherwise provided
for in the Plan; 
 (xii)    to authorize any person to execute on behalf of the Company any instrument required to
effect the grant of an Option previously granted by the Administrator; 
 (xiii)    to determine the terms and
restrictions applicable to Options; and 
 (xiv)    to make all other determinations deemed necessary or advisable for
administering the Plan. 
 (c)    Effect of Administrator’s Decision. The Administrator’s decisions,
determinations and interpretations shall be final and binding on all Optionees and any other holders of Options. 
 5.    Eligibility. Options may be granted to Service Providers; provided, however, that notwithstanding anything to the contrary contained in the Plan, Options may not be granted to Officers and Directors.

 6.    Limitation. Neither the Plan nor any Option shall confer upon an Optionee any right with respect to
continuing the Optionee’s relationship as a Service Provider with the Company, nor 

  

 4 

 
shall they interfere in any way with the Optionee’s right or the Company’s right to terminate such relationship at any time, with or without cause.

 7.    Term of Plan. The Plan shall become effective upon its adoption by the Board. It shall continue in effect
for ten (10) years, unless sooner terminated under Section 14 of the Plan. 
 8.    Term of Option. The
term of each Option shall be stated in the Option Agreement. 
 9.    Option Exercise Price and Consideration.

 (a)    Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an
Option shall be determined by the Administrator. 
 (b)    Waiting Period and Exercise Dates. At the time an
Option is granted, the Administrator shall fix the period within which the Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised. 
 (c)    Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option,
including the method of payment. Such consideration may consist entirely of: 
 (i)    cash; 
 (ii)    check; 
 (iii)    promissory note; 
 (iv)    other Shares which (A) in the case of Shares
acquired upon exercise of an option, have been owned by the Optionee for more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which
said Option shall be exercised; 
 (v)    consideration received by the Company under a cashless exercise program
implemented by the Company in connection with the Plan; 
 (vi)    a reduction in the amount of any Company liability to
the Optionee, including any liability attributable to the Optionee’s participation in any Company-sponsored deferred compensation program or arrangement; 
 (vii)    such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or 
 (viii)    any combination of the foregoing methods of payment. 
 10.    Exercise of Option. 
 (a)    Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such 

  

 5 

 
conditions as determined by the Administrator and set forth in the Option Agreement. An Option may not be exercised for a fraction of a Share. 
 An Option shall be deemed exercised when the Company receives: written or electronic notice of exercise (in accordance with the Option Agreement) from
the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by
the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the Shares are issued (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are
issued, except as provided in Section 12 of the Plan. 
 Exercising an Option in any manner shall decrease the number of Shares
thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
 (b)    Termination of Relationship as a Service Provider. If an Optionee ceases to be a Service Provider, other than upon the Optionee’s death or Disability, the Optionee may exercise his or her Option, but
only within such period of time as is specified in the Option Agreement, and only to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option
Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or
her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate,
and the Shares covered by such Option shall revert to the Plan. 
 (c)    Disability of Optionee. If an Optionee
ceases to be a Service Provider as a result of the Optionee’s Disability, such Optionee, such Optionee’s spouse or any person who acquires the right to act as legal guardian for such Optionee, may exercise his or her Option within such
period of time as is specified in the Option Agreement, to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a
specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares
covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan. 
  

 6 

 (d)    Death of Optionee. If an Optionee dies while a Service Provider, the
Option may be exercised within such period of time as is specified in the Option Agreement (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant), by the Optionee’s estate or by a person who
acquires the right to exercise the Option by bequest or inheritance, but only to the extent that the Option is vested on the date of death. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve
(12) months following the Optionee’s termination. If, at the time of death, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan. The
Option may be exercised by the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the Optionee’s will or the laws of descent or distribution. If the Option is not so
exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 (e)    Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares, an Option previously granted based on such terms and conditions as the Administrator shall establish
and communicate to the Optionee at the time that such offer is made. 
 11.    Non-Transferability of Options.
Unless determined otherwise by the Administrator, an Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee. If the Administrator makes an Option transferable, such Option shall contain such additional terms and conditions as the Administrator deems appropriate. 
 12.    Adjustments. Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 
 (a)    Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of shares of
Common Stock covered by each outstanding Option, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Option, as well as the price per share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Board, whose determination in that respect shall be
final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be
made with respect to, the number or price of shares of Common Stock subject to an Option. 
 (b)    Dissolution or
Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Optionee as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its
discretion may provide for an Optionee to have the right to exercise his or her Option until ten (10) days prior to 

  

 7 

 
such transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option would not otherwise be exercisable. In addition,
the Administrator may provide that any Company repurchase option applicable to any Shares purchased upon exercise of an Option shall lapse as to all such Shares, provided the proposed dissolution or liquidation takes place at the time and in the
manner contemplated. To the extent it has not been previously exercised, an Option will terminate immediately prior to the consummation of such proposed action. 
 (c)    Merger or Asset Sale. In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding Option
shall be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the Option, the
Optionee shall fully vest in and have the right to exercise the Option as to all of the Optioned Stock, including Shares as to which it would not otherwise be vested or exercisable. If an Option becomes fully vested and exercisable in lieu of
assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee in writing or electronically that the Option shall be fully vested and exercisable for a period of fifteen (15) days from the
date of such notice, and the Option shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option shall be considered assumed if, following the merger or sale of assets, the option or right confers the right to
purchase or receive, for each Share of Optioned Stock, immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock
for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the
exercise of the Option, for each Share of Optioned Stock to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of
assets. 
 13.    Date of Grant. The date of grant of an Option shall be, for all purposes, the date on which the
Administrator makes the determination granting such Option, or such other later date as is determined by the Administrator. Notice of the determination shall be provided to each Optionee within a reasonable time after the date of such grant.

 14.    Amendment and Termination of the Plan. 
 (a)    Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 
 (b)    Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the
rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to options granted under the Plan prior to the date of such termination. 
  

 8 

 15.    Conditions Upon Issuance of Shares. 
 (a)    Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option
and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 (b)    Investment Representations. As a condition to the exercise of an Option the Company may require the person exercising
such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required. 
 16.    Inability to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the
failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
 17.    Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

  

 9 

 NANOMETRICS INCORPORATED 
 2002 NONSTATUTORY STOCK OPTION PLAN 
 STOCK OPTION AGREEMENT 
 Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option Agreement. 
 I.    NOTICE OF STOCK OPTION GRANT 
 [Optionee’s Name and Address] 
 You have been granted an option to purchase Common Stock of the Company, subject to the terms
and conditions of the Plan and this Option Agreement, as follows: 
  

					
	 Grant Number
	 		 	  
			
	 Date of Grant
	 		 	  
			
	 Vesting Commencement Date
	 		 	  
			
	 Exercise Price per Share
	 	$	 	  
			
	 Total Number of Shares Granted
	 		 	  
			
	 Total Exercise Price
	 	$	 	  
			
	 Type of Option:
	 		 	Nonstatutory Stock Option
			
	 Term/Expiration Date:
	 		 	  

 Vesting Schedule: 
 Subject to the Optionee continuing to be a Service Provider on such dates, this Option shall vest and become exercisable in accordance with the following
schedule: 
 One third (1/3) of the Shares subject to the Option shall vest twelve months after the Vesting Commencement Date, and
one-third (1/3) of the Shares subject to the Option shall vest on each one year anniversary of the Vesting Commencement Date thereafter. 
 Termination Period: 
 This Option may be exercised for three months (3) months after Optionee ceases to be a Service
Provider. Upon the death or Disability of the Optionee, this Option may be exercised for 

 
twelve months (12) after Optionee ceases to be a Service Provider. In no event shall this Option be exercised later than the Term/Expiration Date as
provided above. 
 II.    AGREEMENT 
 1.    Grant of Option. The Plan Administrator of the Company hereby grants to the Optionee named in the Notice of Grant attached as Part I of this Agreement (the "Optionee") an option (the "Option") to purchase
the number of Shares, as set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the "Exercise Price"), subject to the terms and conditions of the Plan, which is incorporated herein by reference. Subject
to Section 14(b) of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail. 
 2.    Exercise of Option. 
 (a)    Right to Exercise. This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant and the applicable provisions of the Plan and this
Option Agreement. 
 (b)    Method of Exercise. This Option is exercisable by delivery of an exercise notice, in
the form attached as Exhibit A (the "Exercise Notice"), which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the "Exercised Shares"), and such other representations and
agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be completed by the Optionee and delivered to Chief Financial Officer of the Company. The Exercise Notice shall be accompanied by payment
of the aggregate Exercise Price as to all Exercised Shares. This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such aggregate Exercise Price. 
 No Shares shall be issued pursuant to the exercise of this Option unless such issuance and exercise complies with Applicable Laws. Assuming such
compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the Option is exercised with respect to such Exercised Shares. 
 3.    Method of Payment. Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof,
at the election of the Optionee: 
 (a)    cash; 
 (b)    check; 
 (c)    consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; or 
 (d)    surrender of other Shares which (i) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six (6) months on the date of
surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares. 
  

 2 

 4.    Non-Transferability of Option. This Option may not be transferred in any
manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by the Optionee. The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators,
heirs, successors and assigns of the Optionee. 
 5.    Term of Option. This Option may be exercised only within
the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option Agreement. 
 6.    Tax Consequences. Some of the federal tax consequences relating to this Option, as of the date of this Option, are set forth below. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX
LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 
 (a)    Exercising the Option. The Optionee may incur regular federal income tax liability upon exercise of an NSO. The Optionee will be treated as having received compensation income (taxable at ordinary income
tax rates) equal to the excess, if any, of the Fair Market Value of the Exercised Shares on the date of exercise over their aggregate Exercise Price. If the Optionee is an Employee or a former Employee, the Company will be required to withhold from
his or her compensation or collect from Optionee and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise and refuse to deliver
Shares if such withholding amounts are not delivered at the time of exercise. 
 (b)    Disposition of Shares. If
the Optionee holds NSO Shares for at least one year, any gain realized on disposition of the Shares will be treated as long-term capital gain for federal income tax purposes. 
 7.    Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Option Agreement
constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be
modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. This agreement is governed by the internal substantive laws, but not the choice of law rules, of California. 
 8.    NO GUARANTEE OF CONTINUED SERVICE. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING
SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER 

  

 3 

 
ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS
OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE
PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE. 
 By your signature and the signature of the Company’s representative below, you and the
Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Option Agreement. Optionee has reviewed the Plan and this Option Agreement in their entirety, has had an opportunity to obtain the advice
of counsel prior to executing this Option Agreement and fully understands all provisions of the Plan and Option Agreement. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon
any questions relating to the Plan and Option Agreement. Optionee further agrees to notify the Company upon any change in the residence address indicated below. 
  

					
	OPTIONEE	    		  	NANOMETRICS INCORPORATED
			
	  	    		  	  
	Signature	    		  	By
			
	  	    		  	  
	Print Name	    		  	Title
			
	  	    		  	
	Residence Address	    		  	
			
	  	    		  	

  

 4 

 EXHIBIT A 
 NANOMETRICS INCORPORATED 
 2002 NONSTATUTORY STOCK OPTION PLAN 
 EXERCISE NOTICE 
 NANOMETRICS INCORPORATED 

1550 Buckeye Drive 
 Milpitas CA 95035 
 Attention: Chief Financial Officer 
 1.    Exercise of Option. Effective as of today, ________________, _____, the undersigned ("Purchaser") hereby elects to purchase ______________ shares (the "Shares") of the Common Stock of Nanometrics
Incorporated (the "Company") under and pursuant to the Nanometrics Incorporated 2002 Nonstatutory Stock Option Plan (the "Plan") and the Stock Option Agreement dated, _________, ___ (the "Option Agreement"). The purchase price for the Shares shall
be $            , as required by the Option Agreement. 
 2.    Delivery of Payment. Purchaser herewith delivers to the Company the full purchase price for the Shares. 
 3.    Representations of Purchaser. Purchaser acknowledges that Purchaser has received, read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions.

 4.    Rights as Shareholder. Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The
Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date of issuance, except as provided in
Section 12 of the Plan. 
 5.    Tax Consultation. Purchaser understands that Purchaser may suffer adverse
tax consequences as a result of Purchaser’s purchase or disposition of the Shares. Purchaser represents that Purchaser has consulted with any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares
and that Purchaser is not relying on the Company for any tax advice. 
 6.    Entire Agreement; Governing Law. The
Plan and Option Agreement are incorporated herein by reference. This Agreement, the Plan and the Option Agreement constitute the entire 

 
agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and
Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser. This agreement is governed by the internal substantive laws,
but not the choice of law rules, of California. 
  

					
	 Submitted by:
  
 PURCHASER
	    		  	 Accepted by:
  
 NANOMETRICS INCORPORATED

			
	  	    		  	  
	Signature	    		  	By
			
	  	    		  	  
	Print Name	    		  	Title
			
		    		  	  
		    		  	Date Received

									
					
	Address:	 		 		 	Address:	 	1550 Buckeye Drive
	  	 	  	 		 		 	Milpitas, CA 95035
					
	  	 	  	 		 		 	

  

 2

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