Document:

Form of Stock Appreciation Rights Agreement

 Exhibit 10.34 
 ELECTRO SCIENTIFIC INDUSTRIES, INC. 
 STOCK APPRECIATION RIGHTS AGREEMENT

 This STOCK APPRECIATION RIGHTS AGREEMENT dated as of May 13, 2010, is between Electro Scientific Industries, Inc.,
an Oregon corporation (the “Company”), and                              (the
“Recipient”), pursuant and subject to the Company’s 2004 Stock Incentive Plan (the “Plan”). The Company and the Recipient agree as follows: 
 1. SAR Grant. The Company hereby grants to the Recipient on the terms and conditions of this Agreement
                     stock appreciation rights (“SARs”). Upon exercise of a SAR in accordance with this Agreement, Recipient shall
receive the number of shares of the Company’s Common Stock (“Common Stock”) equal to (i) the excess of the closing price of the Common Stock last reported before the time of exercise (the “Market Price”) over
$        , (ii) multiplied by the number of SARs being surrendered, and (iii) dividing the result by the Market Price. No fractional shares shall be issued upon exercise of a SAR and in lieu
thereof the Company will pay Recipient cash in an amount equal to the fraction. The terms and conditions of the SAR grant set forth in attached Exhibit A are incorporated into and made a part of this Agreement. 

2. Grant Date. The Grant Date for this SAR is May 13, 2010. The SAR shall continue in effect until the date ten years after
the Grant Date (the “Expiration Date”) unless earlier terminated as provided in Section 1.5 of Exhibit A or pursuant to the Plan. 
 3. Time of Exercise. Except as provided in Exhibit A or in the Plan, the SAR may be exercised from time to time in the following amounts: 

[insert vesting schedule] 
 (Signature Page Follows) 

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

  

							
	ELECTRO SCIENTIFIC INDUSTRIES, INC.	 		 	RECIPIENT
				
	By:	 	  
	 		 	  

	Name:	 	  
	 		 	  

	Title:	 	  
	 		 	[Print Name]
				
		 		 		 	  

		 		 		 	  

		 		 		 	[address]

  
 2 

 EXHIBIT A 

SAR TERMS AND CONDITIONS 
 2004 Stock Incentive Plan 
 Pursuant to the Company’s 2004 Stock
Incentive Plan (the “2004 Plan”), the Board of Directors has voted in favor of granting to the Recipient stock settled stock appreciation rights to receive Common Stock of the Company (the “SAR”) in the amount determined pursuant
to the attached Agreement. 
 1. The SAR is granted upon the following terms: 

1.1 Duration of SAR. Subject to reductions in the SAR period as hereinafter provided in the event of termination of employment or death of
the Recipient, the SAR shall continue in effect for a period of 10 years from the Grant Date. 
 1.2 Time of Exercise. Except as
provided in paragraphs 1.5 and 1.6 and the Plan (including Section 17 thereof), the SAR may be exercised as set forth in Section 3 of the Agreement. 
 1.3 Limitations on Rights to Exercise. Except as provided in paragraphs 1.5 and 1.6, the SAR may not be exercised unless at the time of such exercise the Recipient is employed by the Company or any
parent or subsidiary of the Company and shall have been so employed continuously since the date such SAR was granted. 
 1.4
Nonassignability. The SAR is nonassignable and nontransferable by the Recipient except by will or by the laws of descent and distribution of the state or country of the Recipient’s domicile at the time of death, and is exercisable during the
Recipient’s lifetime only by the Recipient. 
 1.5 Termination of Employment. 

(a) Unless otherwise determined by the Board of Directors, if a Recipient’s employment or service with the Company terminates for
any reason other than in the circumstances specified in subsection (b) or (c) below or Section 1.6, his or her SAR may be exercised at any time before the expiration date of the SAR or the expiration of three months after the date of
termination, whichever is the shorter period, but only if and to the extent the Recipient was entitled to exercise the SAR at the date of termination. 
 (b) Unless otherwise determined by the Board of Directors, if a Recipient’s employment or service with the Company terminates because of total disability, his or her SAR may be exercised at any time
before the expiration date of the SAR or before the date 12 months after the date of termination, whichever is the shorter period, but only if and to the extent the Recipient was entitled to exercise the SAR 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 approved by the Company, causes the Recipient to be unable to perform his or her duties as an employee, director, officer or consultant of the Company and unable to be engaged in any substantial gainful activity. Total
disability shall be deemed to have occurred after both of the following have occurred: 

  
 A-1

 (A) The two independent physicians have furnished their written opinion of total disability
to the Company; and 
 (B) The Company has reached an opinion of total disability. 

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

 (d) To the extent the SAR held by any deceased Recipient or by the Recipient whose employment is terminated shall not have
been exercised within the limited periods provided above, all further rights to receive shares pursuant to the SAR shall cease and terminate at the expiration of such periods. 

(e) Absence on leave approved by the Company 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 SARs shall continue during a medical, family, military or other leave of absence, whether paid or unpaid. 

1.6 Change in Control. 
 (a) If as a result of a Change in Control, the Company’s Common Stock ceases to be listed for trading on a national securities exchange (an “Exchange”) and the voting securities of the
resulting corporation or the acquiring corporation, as the case may be (including without limitation, the voting securities of any corporation which as a result of the Change in Control owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries) (the “Surviving Company”), are traded on an Exchange, any SARs subject to this award that are unvested on the date of the Change in Control shall continue to vest
according to the terms and conditions of this award and this award shall be replaced with an award for voting securities of the Surviving Corporation (a “Replacement Award”), which Replacement Award shall consist of SARs with the number of
underlying shares and an exercise price determined in a manner consistent with Section 424(a) of the Internal Revenue Code of 1986, as amended, with vesting and any other terms continuing in the same manner as this award; provided, however,
that in the event of a termination of Recipient’s employment by the Company or the Surviving Company without Cause or by the Recipient for Good Reason during the vesting period of any Replacement Award, the Replacement Award shall immediately
vest; and provided further that upon the vesting date of all or a portion of a Replacement Award, the Company or the Surviving Company shall pay to Recipient a lump sum cash payment, paid as soon as practicable and in any event not later than
March 15 of the calendar year following the calendar year of termination, equal to the decrease, if any, in the value of a share of the Surviving Company’s voting securities from the date of the Change in Control (as increased on a
calendar quarterly basis using an annual interest rate, as of the last business day of the calendar quarter, for zero-coupon U.S. government securities with a constant maturity closest in length to the time period between the date of the Change in
Control and the date of vesting of the Replacement Award) to the time of vesting multiplied by the total number of SARs vesting on such date. If any SARs that are unvested at the time of the Change in Control are not replaced with Replacement
Awards, such SARs shall immediately vest. 

  
 A-2

 (b) If as a result of a Change in Control, the Company’s Common Stock continues to be
listed for trading on an Exchange, any SARs that are unvested on the date of the Change of Control shall continue to vest according to the terms and conditions of this award; provided however, that, in the event of a termination of Recipient’s
employment by the Company without Cause or by the Recipient for Good Reason during the vesting period of this award such award shall immediately vest; and provided further that upon the vesting date of all or portion of this award, the Company shall
pay to Recipient an additional lump sum cash payment, paid as soon as practicable and in any event not later than March 15 of the calendar year following the calendar year of termination, equal to the decrease, if any, in the value of a
share of the Company’s stock from the date of the Change in Control (as increased on a calendar quarterly basis using an annual interest rate, as of the last business day of the calendar quarter, for zero-coupon U.S. government
securities with a constant maturity closest in length to the time period between the date of the Change in Control and the date of the vesting) to the time of vesting, multiplied by the total number of SARs vesting on such date. 

(c) For purposes of this Agreement, a “Change in Control” of the Company shall mean the occurrence of any of the following
events: 
 (A) any consolidation, merger or plan of share exchange involving the Company (a “Merger”) as a result of
which the holders of outstanding securities of the Company ordinarily having the right to vote for the election of directors (“Voting Securities”) immediately prior to the Merger do not continue to hold at least 50% of the combined voting
power of the outstanding Voting Securities of the surviving or continuing corporation immediately after the Merger, disregarding any Voting Securities issued or retained by such holders in respect of securities of any other party to the Merger;

 (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or
substantially all, the assets of the Company; 
 (C) the adoption of any plan or proposal for the liquidation or dissolution of
the Company; 
 (D) at any time during a period of two consecutive years, individuals who at the beginning of such period
constituted the Board of Directors (“Incumbent Directors”) shall cease for any reason to constitute at least a majority thereof, unless each new director elected during such two-year period was nominated or elected by two-thirds of the
Incumbent Directors then in office and voting (with new directors nominated or elected by two-thirds of the Incumbent Directors also being deemed to be Incumbent Directors); or 

  
 A-3

 (E) any Person (as hereinafter defined) shall, as a result of a tender or exchange offer,
open market purchases, or privately negotiated purchases from anyone other than the Company, have become the beneficial owner (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of Voting Securities
representing fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities. 

Notwithstanding anything in the foregoing to the contrary, unless otherwise determined by the Board of Directors, no Change in Control
shall be deemed to have occurred for purposes of this Agreement if (1) the Recipient acquires (other than on the same basis as all other holders of the Company Common Stock) an equity interest in an entity that acquires the Company in a Change
in Control otherwise described under subparagraph (A) or (B) above, or (2) the Recipient is part of group that constitutes a Person which becomes a beneficial owner of Voting Securities in a transaction that otherwise would have
resulted in a Change in Control under subparagraph (E) above. 
 (d) For purposes of this Agreement, the term
“Person” shall mean and include any individual, corporation, partnership, group, association or other “person”, as such term is used in Section 14 (d) of the Securities Exchange Act of 1934 (the “Exchange
Act”), other than the Company, a wholly owned subsidiary of the Company or any employee benefit plan(s) sponsored by the Company. 
 (e) Cause. Termination by the Company of Recipient’s employment for “Cause” shall mean termination upon (A) the willful and continued failure by the Recipient to perform substantially
the Recipient’s reasonably assigned duties with the Company consistent with those duties assigned to the Recipient prior to the Change in Control (other than any such failure resulting from the Recipient’s incapacity due to physical or
mental illness) after a written demand for substantial performance is delivered to the Recipient by the Chairman of the Board of Directors or Chief Executive Officer of the Company or the Surviving Company or, if Recipient is not an officer, or an
officer or manager with responsibility for Recipient’s department, which specifically identifies the manner in which such executive, officer or manager believes that the Recipient has not substantially performed the Recipient’s duties,
(B) the conviction of guilty or entering of a nolo contendere plea to a felony which is materially and demonstrably injurious to the Company or the Surviving Company or (C) the commission of an act by Recipient, or the failure of Recipient
to act, which constitutes gross negligence or gross misconduct. For purposes of this paragraph (e), no act, or failure to act, on the Recipient’s part shall be considered “willful” unless done, or omitted to be done, by the Recipient
in knowing bad faith. Any act, or failure to act based upon authority given pursuant to a resolution duly adopted by the Board of Directors or based upon the advice of counsel for the Company or the Surviving Company shall be conclusively presumed
to be done, or omitted to be done, by the Recipient in good faith. 

  
 A-4

 (f) Good Reason. Termination by the Recipient of his or her employment for “Good
Reason” shall mean termination based on the following, after notice to the Company or the Surviving Company of the condition within one year of the occurrence of the condition and the failure of the Company or the Surviving Company to remedy
the condition within 30 days after notice: 
 (A) a material diminution of Recipient’s status, title, position(s) or
responsibilities from Recipient’s status, title, position(s) and responsibilities as in effect immediately prior to the Change in Control or the assignment to Recipient of any duties or responsibilities which are inconsistent with such status,
title, position(s) or responsibilities (in either case other than isolated, insubstantial or inadvertent actions which are remedied after notice), or any removal of Recipient from such position(s), except in connection with the termination of
Recipient’s employment for Cause, total disability (as defined in Section 1.5(b)) or as a result of Recipient’s death or voluntarily by Recipient other than for Good Reason; 

(B) a material reduction by the Company or Surviving Company in Recipient’s rate of base salary, bonus or incentive opportunity or
a material reduction in benefits (other than reductions that do not impact Recipient’s compensation opportunity, taken as a whole, or a reduction in benefits applicable to substantially all employees); or 

(C) the Company’s or Surviving Company’s requiring Recipient to be based more than fifty miles from the principal office at in
which Recipient is based immediately prior to the Change in Control, except for reasonably required travel on the Company’s business. 
 1.7 Method of Exercise. Shares may be acquired pursuant to the award only upon receipt by the Company of notice in writing from the Recipient of the Recipient’s intention to exercise, specifying the
number of SARs as to which the Recipient desires to exercise the award and the date on which the Recipient desires to complete the transaction, which shall not be more than 30 days after receipt of the notice, and, unless in the opinion of counsel
for the Company such a representation is not required in order to comply with the Securities Act of 1933, as amended, containing a representation that it is the Recipient’s present intention to acquire the shares for investment and not with a
view to distribution. The Recipient shall have none of the rights of a shareholder until a certificate for shares is issued to the Recipient. No fractional shares shall be issued and in lieu thereof the Company shall pay Recipient cash equal to the
value of such fractional share on the date of exercise. The Recipient shall, upon notification of the amount due, if any, and prior to or concurrently with delivery of the certificates representing the shares with respect to which the SAR was
exercised, pay to the Company amounts necessary to satisfy any applicable federal, state and local withholding tax requirements. If additional withholding becomes required beyond any amount deposited before delivery of the certificates, the
Recipient shall pay such amount to the Company on demand. 
 1.8 Changes in Capital Structure. In the event that the outstanding
shares of Common Stock of the Company are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company or another corporation, by reason of any reorganization, merger,
consolidation, recapitalization, reclassification, stock split-up, combination of shares, or dividend payable in shares, appropriate adjustment shall be made by the Board of Directors in the number of SARs subject to this Agreement and/or the amount
payable on exercise of the SARs. Any such adjustment made by the Board of Directors shall be conclusive. 

  
 A-5

 2. The obligations of the Company under this Agreement are subject to the approval of such
state or federal authorities or agencies, if any, as may have jurisdiction in the matter. The Company will use its best efforts to take such steps as may be 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 issuance or sale of any shares acquired upon the exercise of the SAR. 

3. Nothing in the 2004 Plan or this Agreement shall confer upon the Recipient any right to be continued in the employment of the Company
or any subsidiary of the Company, or to interfere in any way with the right of the Company or any subsidiary by whom the Recipient is employed to terminate the Recipient’s employment at any time, with or without cause. 

4. This Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company but except as
hereinabove provided the SAR herein granted shall not be assigned or otherwise disposed of by the Recipient. 

  
 A-6Form of Performance-Based Restricted Stock Units Award Agreement

 Exhibit 10.35 
 Konidaris 2010 PRSU Agreement 
 PERFORMANCE-BASED 

RESTRICTED STOCK UNITS AWARD AGREEMENT 
 This Award Agreement (the “Agreement”) is entered into as of May 13, 2010 by and between Electro Scientific Industries, Inc., an Oregon corporation (the “Company”), and Nicholas
Konidaris (“Recipient”), for the grant of restricted stock units with respect to the Company’s Common Stock (“Common Stock”). 
 On May 13, 2010, the Compensation Committee of the Company’s Board of Directors made a restricted stock units award to Recipient pursuant to the Company’s 2004 Stock Incentive Plan (the
“Plan”). The award is intended to qualify as performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986. Recipient desires to accept the award subject to the terms and conditions of this Agreement.

 IN CONSIDERATION of the mutual covenants and agreements set forth in this Agreement, the parties agree to the following.

 1. Grant and Terms of Restricted Stock Units. The Company grants to Recipient under the Plan
             restricted stock units, subject to the restrictions, terms and conditions set forth in this Agreement. 

(a) Rights under Restricted Stock Units. A restricted stock unit (a “RSU”) represents the unsecured right to require the
Company to deliver to Recipient one share of Common Stock for each RSU subject to Section 1(c). The number of shares of Common Stock deliverable with respect to each RSU is subject to adjustment as determined by the Board of Directors of the
Company as to the number and kind of shares of stock deliverable upon any merger, reorganization, consolidation, recapitalization, stock dividend, spin-off or other change in the corporate structure affecting the Common Stock generally. 

(b) Vesting. The RSUs issued under this Agreement shall initially be 100% unvested and subject to forfeiture as set forth below.

 (i) Except as set forth in Section 1(d) or in the Employment Agreement, dated as of January 7, 2004, by and
between the Company, as amended, as the same may be amended, visited or modified from time to time (the “Employment Agreement”), if Recipient ceases to be employed by the Company for any reason or for no reason prior to the end of the
Performance Period (as defined below), the unvested RSUs shall be forfeited to the Company. 
 (ii) To the extent that the
number of RSUs first specified above are reduced in accordance with Section 1(b)(iii) upon achievement to any extent of the Performance Goals (as defined below) and except as provided in Section 1(d), the reduction shall be forfeited to
the Company. The extent to which any Performance Goal is achieved, if at all, shall be determined by a date that is no later than December 31 of the calendar year in which the Performance Period ends (the “Determination Date”).
Nothing contained in this Agreement shall confer upon Recipient any right to be employed by the Company or to continue to provide services to the Company or to interfere in any way with the right of the Company to terminate Recipient’s services
at any time for any reason, with or without cause. 

 (iii) The vesting of the RSUs shall be based on two “Performance Goals,” as
follows: 
 (A)
                     [insert # equal to 60%] of the RSUs shall vest based on (1) the average of the annual percentage increase/decrease
in net sales of the Company for each of fiscal 2011, 2012 and 2013 compared to the immediately preceding fiscal year (such three fiscal year period, the “Performance Period”), relative to (2) the average of the annual percentage
increase/decrease in net sales for each member of the peer group of companies set forth on Exhibit A (the “Peer Group”) for each of the three fiscal years most comparable to the fiscal years comprising the Performance Period for
which annual net sales information is available prior to the Determination Date (the “Comparable Period”) compared to the immediately preceding fiscal year; 

(B)
                     [insert # equal to 40%] of the RSUs shall vest based on (1) the average of operating cash flow as a percentage of
net sales for the Company for each fiscal year in the Performance Period, relative to (2) the average of operating cash flow as a percentage of net sales for each member of the Peer Group for each fiscal year in the Comparable Period;

 (C) All information with respect to members of the Peer Group will be based upon publicly available
information. The number of RSUs vesting pursuant to Subsection 1(b)(iii)(A) and Subsection 1(b)(iii)(B) shall be increased or reduced as follows: 
  

			
	 Company Percentile Rank vs. Peer
Group
	 	Portion of RSUs Subject to
Subsection (A) or (B) 
Vesting
	 3 90th
	 	 200

	     75th
	 	150%
	     50th
	 	100%
	     25th
	 	  50%
	 < 25th
	 	    0%

 RSUs will vest proportionately between 50% and 100% for Company rankings between the 25th and 50th percentiles, between 100% and 150% for Company rankings between the 50th and 75th percentiles, and between 150% and 200% for Company rankings between the 75th and 90th percentiles. The Compensation Committee of the Board of Directors may, in its discretion, permit the vesting of any or
all of the RSUs subject to this Agreement for a Company ranking below the 25th percentile. 
 (D) The aggregate number of vested RSUs determined
pursuant to Subsection 1(b)(iii)(C) (the “Base Number”) shall be increased based on the Company’s return on equity in fiscal 2013 relative to the average return of equity for each member of the Peer Group for the fiscal year most
comparable to the Company’s fiscal 2013 for which return on equity information is available prior to the Determination Date. The increased number of vested RSUs shall be equal to the Base Number multiplied by the Multiplier, as follows:

  

			
	 Company Percentile Rank vs. Peer Group
	 	 Multiplier

	
                  3
90th
	 	1.4
	 90th > and 3 80th
	 	1.3
	 80th > and 3 70th
	 	1.2
	 70th > and 3 60th
	 	1.1
	 60th > and 3 50th
	 	1.0

  
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 (E) The number of RSUs determined pursuant to this Section 1(b)(iii)
shall vest on the last day of the Performance Period, subject to Section 1(b)(i) and Section 1(d). Any RSUs not vested at that time shall be forfeited. 
 (c) Delivery Date. Except as set forth in Section 1(d)(iv), the delivery date for a RSU subject to this Agreement shall be as soon as practicable on or after the Determination Date, but in no
event later than December 31 of the calendar year in which the Performance Period ends. 
 (d) Proration upon
Termination for Certain Reasons Prior to End of Performance Period; Treatment on Change in Control. 
 (i) Proration on
Death or Total Disability. If Recipient ceases to be an employee of the Company by reason of Recipient’s death or total disability prior to the end of the Performance Period, the RSUs shall not be forfeited under Section 1(b)(i) and
the following shall apply: 
 (1) The number of RSUs Recipient would otherwise be entitled to receive pursuant
to Section 1(b)(iii) if Recipient were employed through the end of the Performance Period (the “Base Payout”) shall be reduced to a number determined by multiplying the Base Payout by a percentage calculated by dividing the number of
months elapsed from the beginning of the Performance Period to the date of termination of employment (rounded down to the whole month) by 36 (the “Pro Rata Percentage”). RSUs that exceed the reduced number shall be forfeited to the
Company. 
 (2) The Board of Directors or the Compensation Committee of the Board of Directors, in its
discretion, may increase the number of RSUs the Recipient would otherwise be entitled to receive under this Section 1(d)(i); the Recipient shall have no right to any increase. 

(3) The amount of RSUs determined under (1) and (2) shall be delivered as soon as practicable on or after the
Determination Date, but in no event later than December 31 of the calendar year in which the Performance Period ends. 

  
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 (4) 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 approved by the Company,
causes the Recipient to be unable to perform his or her duties as an employee, director, officer or consultant of the Company and unable to engage in any substantial gainful activity. Total disability shall be deemed to have occurred after both of
the following have occurred: 
 (A) The two independent physicians have furnished their written opinion of total
disability to the Company; and 
 (B) The Company has reached an opinion of total disability. 

(ii) Retirement. If Recipient voluntarily terminates his employment with the Company after Recipient attains age 67 with the
intention of not seeking further full-time employment but prior to the end of the Performance Period, the RSUs shall not be forfeited under Section 1(b)(i) and vesting will continue to be determined pursuant to Section 1(b)(iii).

 (iii) Proration on Termination Other Than for Cause. If the Company terminates Recipient’s employment with the
Company other than for Cause or Recipient terminates his employment for Good Reason and there has been no Change in Control (as “Cause,” “Good Reason” and “Change in Control” are defined in the Employment Agreement)
prior to the end of the Performance Period, the RSUs shall not be forfeited under Section 1(b)(i) and the following shall apply: 
 (1) The Base Payout shall be reduced to a number determined by multiplying the Base Payout by a percentage calculated by dividing the sum of (A) the number of months elapsed from the grant date to
the date of termination and (B) the lesser of (y) the number of months from the date of termination to the end of the Performance Period and (z) 24 months, by 36 (it being acknowledged that the resulting percentage could be 100%,
therefore not reducing the Base Payment). RSUs that exceed the reduced number shall be forfeited to the Company. 
 (2) The Board of Directors or the Compensation Committee of the Board of Directors, in its discretion, may increase the number of RSUs the Recipient would otherwise be entitled to receive under this
Section 1(d)(iii); the Recipient shall have no right to any increase. 
 (3) The amount of RSUs determined
under (1) and (2) shall be delivered as soon as practicable on or after the Determination Date, but in no event later than December 31 of the calendar year in which the Performance Period ends. 

  
 4 

 (iv) Treatment following Change in Control. Except as otherwise provided in the
Employment Agreement: 
 (1) If as a result of a Change in Control, the Company’s Common Stock ceases to be
listed for trading on a national securities exchange (an “Exchange”) and the voting securities of the resulting corporation or the acquiring corporation, as the case may be (including without limitation, the voting securities of any
corporation which as a result of the Change in Control owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) (the “Surviving Company”), are traded on an Exchange, any
RSUs subject to this award that are unvested on the date of the Change in Control shall continue to vest and be deliverable according to the terms and conditions of this award and this award shall be replaced with an award for voting securities of
the Surviving Company (a “Replacement Award”), which Replacement Award shall consist of RSUs with respect to shares of voting securities that have a value (determined using the Surviving Company’s stock price as of the date of the
Change in Control) equal to the value of the shares of Common Stock with respect to the replaced award of RSUs (determined using the Company’s stock price and assuming attainment of target performance or actual performance achieved, if greater,
as of the date of the Change in Control); provided, however, that in the event of a termination of Recipient’s Employment by the Company or the Surviving Company without Cause or by Recipient for Good Reason during the Performance Period, the
Replacement Award shall immediately vest and the shares shall be delivered as soon as practicable on or after the Determination Date, but in no event later than December 31 of the calendar year in which the Performance Period ends; and provided
further that the Company or the Surviving Company shall pay to Recipient an additional lump sum cash payment, paid as soon as practicable on or after the Determination Date, but in no event later than December 31 of the calendar year in which
the Performance Period ends, equal to the decrease, if any, in the value of a share of the Surviving Company’s voting securities from the date of the Change in Control (as increased on a calendar quarterly basis using an annual interest rate,
as of the last business day of the calendar quarter, for zero-coupon U.S. government securities with a constant maturity closest in length to the time period between the date of the Change in Control and the date of vesting of the Replacement Award)
to the time of vesting multiplied by the total number of RSUs vesting on such date. 
 (2) If as a result of a
Change in Control, the Company’s Common Stock continues to be listed for trading on an Exchange, any RSUs that are unvested on the date of the Change of Control shall continue to vest in accordance with the terms and conditions of this award;
provided however, that, in the event of a termination of Recipient’s employment by the Company without Cause or by Recipient for Good Reason during the vesting period of this award such award shall immediately vest and the shares shall be
delivered as soon as practicable on or after the Determination Date, but in no event later than December 31 of the calendar year in which the Performance Period ends; and provided further that Recipient shall be entitled to receive a lump sum
cash payment, paid as soon as practicable on or after the Determination Date, but in no event later than December 31 of the calendar year in which the Performance Period ends, equal to the decrease, if any, in the value of a share of the
Company’s stock from the date of the Change in Control (as increased on a calendar quarterly basis using an annual interest rate, as of the last business day of the calendar quarter, for zero-coupon U.S. government securities with a constant
maturity closest in length to the time period between the date of the Change in Control and the date of the vesting) to the time of vesting, multiplied by the total number of RSUs vesting on such date. 

  
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 (3) Notwithstanding anything in clauses (1) and (2) above to the
contrary, if (i) a change in ownership of the Company occurs (applying the definition of “change in the ownership of a corporation” set forth in Treasury Regulation Section 1.409A(3)(i)(5)(v), replacing “50 percent”
with “75 percent”) or (ii) there is a change in the ownership of a substantial portion of the assets of the Company (applying the definition of “change in the ownership of a substantial portion of a corporation’s
assets” set forth in Treasury Regulation Section 1.409A(3)(i)(5)(vii), replacing “40 percent” with “all or substantially all”), then all unvested RSUs subject to this award shall vest in an amount equal to the
greater of (A) the number of RSUs subject to this Agreement and (B) the amount payable under this Agreement based on actual results, and be deliverable immediately prior to the closing of such transaction. 

(4) For purposes of this Agreement, a “Change in Control” of the Company shall mean the occurrence of any of
the following events: 
 (A) Any consolidation, merger or plan of share exchange involving the Company (a
“Merger”) as a result of which the holders of outstanding securities of the Company ordinarily having the right to vote for the election of directors (“Voting Securities”) immediately prior to the Merger do not continue to hold
at least 50% of the combined voting power of the outstanding Voting Securities of the surviving or continuing corporation immediately after the Merger, disregarding any Voting Securities issued or retained by such holders in respect of securities of
any other party to the Merger; 
 (B) Any sale, lease, exchange or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, the assets of the Company; 
 (C) The adoption of
any plan or proposal for the liquidation or dissolution of the Company; 
 (D) At any time during a period of
two consecutive years, individuals who at the beginning of such period constituted the Board of Directors (“Incumbent Directors”) shall cease for any reason to constitute at least a majority thereof, unless each new director elected during
such two-year period was nominated or elected by two-thirds of the Incumbent Directors then in office and voting (with new directors nominated or elected by two-thirds of the Incumbent Directors also being deemed to be Incumbent Directors); or

 (E) Any Person (as hereinafter defined) shall, as a result of a tender or exchange offer, open market
purchases, or privately negotiated purchases from anyone other than the Company, have become the beneficial owner (within the meaning of Rule 13d -3 under the Securities Exchange Act of 1934), directly or indirectly, of Voting Securities
representing fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities. 

  
 6 

 Notwithstanding anything in the foregoing to the contrary, unless otherwise determined by the Board of
Directors, no Change in Control shall be deemed to have occurred for purposes of this Agreement if (1) Recipient acquires (other than on the same basis as all other holders of the Company Common Stock) an equity interest in an entity that
acquires the Company in a Change in Control otherwise described under subparagraph (A) or (B) above, or (2) Recipient is part of group that constitutes a Person which becomes a beneficial owner of Voting Securities in a transaction
that otherwise would have resulted in a Change in Control under subparagraph (E) above. 
 (5) For purposes
of this Agreement, the term “Person” shall mean and include any individual, corporation, partnership, group, association or other “person”, as such term is used in Section 14 (d) of the Securities Exchange Act of 1934
(the “Exchange Act”), other than the Company, a wholly owned subsidiary of the Company or any employee benefit plan(s) sponsored by the Company. 
 (6) For purposes of this Agreement, termination by Recipient of his or her employment for “Good Reason” shall mean termination based on the following, after notice to the Company or the
Surviving Company by the Recipient of the condition within one year of the occurrence of the condition and failure of the Company or the Surviving Company to remedy the condition within 30 days after notice: 

(A) a material diminution of Recipient’s status, title, position(s) or responsibilities from Recipient’s
status, title, position(s) and responsibilities as in effect immediately prior to the Change in Control or the assignment to Recipient of any duties or responsibilities which are inconsistent with such status, title, position(s) or responsibilities
(in either case other than is isolated, insubstantial or inadvertent actions which are remedied after notice), or any removal of Recipient from such position(s), except in connection with the termination of Recipient’s employment for Cause,
total disability (as defined in Section 1(d)(i)) or as a result of Recipient’s death or voluntarily by Recipient other than for Good Reason; 
 (B) a material reduction by the Company or Surviving Company in Recipient’s rate of base salary, bonus or incentive opportunity or a material reduction in benefits (other than reductions that do not
impact Recipient’s compensation opportunity, taken as a whole, or a reduction in benefits applicable to substantially all employees); or 
 (C) the Company’s or Surviving Company’s requiring Recipient to be based more than fifty miles from the principal office at which Recipient is based immediately prior to the Change in Control,
except for reasonably required travel on the Company’s business. 
 (e) Restrictions on Transfer and Delivery on
Death. Recipient may not sell, transfer, assign, pledge or otherwise encumber or dispose of the RSUs. Recipient may designate beneficiaries to receive shares of stock with respect to RSUs if Recipient dies before the delivery date by so
indicating on Exhibit B, which is incorporated into and made a part of this agreement. If Recipient fails to designate beneficiaries on Exhibit B, the shares will be delivered to Recipient’s estate. 

  
 7 

 (f) Reinvestment of Dividend Equivalents. On each date on which the Company pays a
dividend on a share of Common Stock with respect to an RSU, the number of RSUs subject to this Agreement shall be increased by a number equal to the number of whole or fractional shares of Common Stock with a value equal to the value of the
dividends that would have been paid on the stock deliverable pursuant to those RSUs that vest pursuant to Section 1 (if such shares were outstanding), divided by the closing stock price on the dividend payment date. 

(g) Delivery on Delivery Date. As soon as practicable following the delivery date for a share of Common Stock, the Company shall
deliver a certificate for the number of shares represented by all RSUs having a delivery date on the same date, rounded down to the whole share. No fractional shares of Common Stock shall be issued. The Company shall pay to Recipient in cash an
amount equal to the value of any fractional shares that would otherwise have been issued, valued as of the delivery date. If shares or cash are to be delivered on a particular date, the shares or cash shall be deemed delivered on that date for
purposes of compliance with the terms of this Agreement if the cash or shares are actually delivered within 45 days after the specified date as determined in the Company’s discretion with the Recipient having no right to determine the delivery
date. Recipient shall not have any right to determine or direct the date of actual delivery. 
 (h) Recipient’s Rights
as Shareholder. Recipient shall have no rights as a shareholder with respect to the RSUs or the shares underlying them until the Company delivers the shares to Recipient on the delivery date. 

(i) Tax Withholding. Recipient acknowledges that, at the actual delivery date, the value of delivered shares of Common Stock will
be treated as ordinary compensation income for federal and state income and FICA tax purposes, and that the Company will be required to withhold taxes on this income amount. On or before the delivery date, the Company will notify Recipient of the
required withholding amount. Concurrently with or prior to the delivery of the certificate referred to in Section 1(g), Recipient shall pay to the Company the required withholding amount in cash or, at the election of the Recipient (which
election must be made on or before the Determination Date), by surrendering to the Company for cancellation shares of the Company’s Common Stock to be delivered with respect to the RSUs or other shares of the Company’s Common Stock valued
at the closing market price for the Company’s Common Stock on the Determination Date. If the Recipient pays the withholding amount in shares of Common Stock, the Company shall pay to the Recipient in cash the amount of any resulting over
payment. 
 (j) Section 409A. The award made pursuant to this Agreement shall be interpreted in accordance with
Section 409A and Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance issued after the grant of the award. For example, a termination of employment shall be
determined with respect to standards for “separation from service” within the meaning of applicable regulations. 

  
 8 

 (i) Notwithstanding any provision of the award to the contrary, the Company may adopt such
amendments to the award or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to (1) exempt the award
from the application of Section 409A or preserve the intended tax treatment of the benefits provided with respect to the award, or (2) comply with the requirements of Section 409A. 

(ii) If an amount is determined to be subject to applicable provisions of Section 409A of the Code, payment in connection with
termination of employment for a reason other than death or total disability may not start or be made to Recipient if the Company determines Recipient is a “key employee” as defined in Section 416(i) of the Code, without regard to
Section 416(i)(5) of the Code, before the date which is six months after the date of termination, notwithstanding any other provisions for time of payment in this Agreement, if such delay in payment is necessary to comply with Section 409A
of the Code. The Company may determine that Recipient is a key employee in the event of doubt or to avoid impractical efforts or expense to make an exact determination of key employees. Recipient shall have no claim, rights or remedy if the
determination is not correct. 
 2. Miscellaneous. 

(a) Entire Agreement; Amendment. This Agreement and the Plan (including without limitation Section 17 thereof) constitute the
entire agreement of the parties with regard to the subjects hereof and may be amended only by written agreement between the Company and the Recipient. 
 (b) Notices. Any notice required or permitted under this Agreement shall be in writing and shall be deemed sufficient when delivered personally to the party to whom it is addressed or when
deposited into the United States mail as registered or certified mail, return receipt requested, postage prepaid, addressed to Electro Scientific Industries, Inc., Attention: Corporate Secretary, at its principal executive offices or to the
Recipient at the address of Recipient in the Company’s records, or at such other address as such party may designate by ten (10) days’ advance written notice to the other party. 

(c) Rights and Benefits. The rights and benefits of this Agreement shall inure to the benefit of and be enforceable by the
Company’s successors and assigns and, subject to the restrictions on transfer of this Agreement, be binding upon the Recipient’s heirs, executors, administrators, successors and assigns. 

(d) Further Action. The parties agree to execute such further instruments and to take such further action as may reasonably be
necessary to carry out the intent of this Agreement. 
 (e) Applicable Law; Attorneys’ Fees. The terms and
conditions of this Agreement shall be governed by the laws of the State of Oregon. In the event either party institutes litigation hereunder, the prevailing party shall be entitled to reasonable attorneys’ fees to be set by the trial court and,
upon any appeal, the appellate court. 

  
 9 

 (f) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original. 
  

			
	 ELECTRO SCIENTIFIC INDUSTRIES, INC.

		
	 By:
	 	  

		 	         Authorized Officer

	
	  

	
                        
                                    ,
Recipient

  
 10 

 EXHIBIT A 
 PEER GROUP COMPANIES 
 Advanced Energy 

ATMI 
 Brooks Automation 

Coherent 
 Cohu 

Cymer 
 Entegris 

FEI 
 FormFactor 

GSI 
 Intevac 

KLA-Tencor 
 Kulicke & Soffa Industries

 Lam Research 
 MKS Instruments

 Newport 
 Rudolph 

Teradyne 
 Ultratech 

Varian Semiconductor 
 Veeco Instruments

 Zygo 

  
 A - 1

 EXHIBIT B 
 DESIGNATION OF BENEFICIARY 
  

							
	Name	 	  
	 		  	Social Security Number
        -    -        

 I designate the following person(s) to receive any restricted stock units outstanding upon my death under the Performance-Based Restricted Stock Units Award Agreement with Electro Scientific Industries,
Inc.: 
 Primary Beneficiary(ies) 
  

									
	Name 	 	  
	  		  	Social Security Number
           -        -           

									
	Birth Date	 	  
	  		  	Relationship	 	                             
                     
	Address	 	  
	  		  	City                      State
             Zip                

 

									
	Name 	 	  
	  		  	Social Security Number
           -        -           

									
	Birth Date	 	  
	  		  	Relationship	 	                             
                     
	Address	 	  
	  		  	City                      State
             Zip                

 

									
	Name 	 	  
	  		  	Social Security Number
           -        -           

									
	Birth Date	 	  
	  		  	Relationship	 	                             
                     
	Address	 	  
	  		  	City                      State
             Zip                

If more than one primary beneficiary is named, the units will be divided equally among those primary beneficiaries who survive the undersigned.

 Secondary Beneficiary(ies) 
 In the
event no Primary Beneficiary is living at the time of my death, I designate the following the person(s) as my beneficiary(ies): 
  

									
	Name 	 	  
	  		  	Social Security Number
           -        -           

									
	Birth Date	 	  
	  		  	Relationship	 	                             
                     
	Address	 	  
	  		  	City                      State
             Zip                

 

									
	Name 	 	  
	  		  	Social Security Number
           -        -           

									
	Birth Date	 	  
	  		  	Relationship	 	                             
                     
	Address	 	  
	  		  	City                      State
             Zip                

 

									
	Name 	 	  
	  		  	Social Security Number
           -        -           

									
	Birth Date	 	  
	  		  	Relationship	 	                             
                     
	Address	 	  
	  		  	City                      State
             Zip                

If more than one Secondary Beneficiary is named, the units will be divided equally among those Secondary beneficiaries who survive the undersigned.

 This designation revokes and replaces all prior designations of beneficiaries under the Performance-Based Restricted Stock Units Award
Agreement. 
  

							
	  
	 		 		  	Date signed:             , 20    
	Signature	 		 		  	

  
 B - 1

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