Document:

Form of Restricted Stock Units Award Agreement

 Exhibit 10.36 
 Konidaris 2010 TRSU Agreement 
 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”) and 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
                     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 and Delivery Dates. The RSUs issued under this Agreement shall initially be 100% unvested and subject to forfeiture.
Subject to this Section 1(b) and Section 1(c), the RSUs shall vest 100% on the [third][fifth] anniversary of the date of grant. Except as set forth in Section 1(c) or in the Employment Agreement, dated as of January 7,
2004, by and between the Company and Recipient, as amended, as the same may be amended, restated or modified from time to time (the “Employment Agreement”), the RSUs shall become vested on the vesting date only if Recipient continues to be
an employee of the Company immediately after such vesting date. The delivery date for a RSU shall be the date on which such RSU vests. 
 (c) Payment before Vesting Date. 
 (1) Payment on Death
or Total Disability. If Recipient ceases to be an employee of the Company by reason of Recipient’s death or physical disability, outstanding but unvested RSUs shall become immediately vested in an amount determined by multiplying the total
number of RSUs subject to this Agreement by a percentage calculated by dividing the number of whole months elapsed from the date of this Agreement to the date of termination of employment by [36][60] (the “Pro Rata
Percentage”); provided, however, that the number of RSUs so vested shall be reduced by the number of any RSUs that previously vested pursuant to Section 1(b). The delivery date shall also accelerate. 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 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. 

(2) Payment on Retirement. Except as otherwise provided in this Section 1(c) or in the Employment Agreement,
if Recipient voluntarily terminates his employment with the Company after Recipient attains age 67 with the intention of not seeking further full time employment at termination the Company shall deliver [all of the shares of Common Stock
underlying the total number of RSUs subject to this Agreement] [the number of shares of Common Stock determined by multiplying the total number of RSUs subject to this Agreement by a percentage calculated by dividing the number of whole months
elapsed from the date of this Agreement to the date of the third anniversary of the date of Recipient’s termination of employment by 60]. 
 (3) Payment 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), then at termination the Company shall deliver the number of shares of Common Stock
determined by multiplying the total number of RSUs subject to this Agreement by a percentage calculated by dividing the number of whole months elapsed from the date of this Agreement to the date of the second anniversary of the date of
Recipient’s termination of employment by 60. 

  
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 (4) Treatment on Change in Control. Except as Otherwise Provided in
the Employment Agreement: 
 (i) 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 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 vesting period of any Replacement Award, the Replacement Award shall immediately vest and the delivery date
shall be accelerated; 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 an additional lump sum cash payment 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. 
 (ii) 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 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 Recipient for Good Reason during the vesting period of this award such award shall immediately vest and the delivery date shall be accelerated; 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 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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 (iii) 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”), and the voting securities of the Surviving Corporation or the Company after the transaction are not listed on an Exchange, then all RSUs
subject to this award shall vest and be deliverable immediately prior to the closing of such transaction. 

(iv) 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. 

  
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 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. 
 (v)
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. 

(vi) 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 

  
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 (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. 

(d) Forfeiture of RSUs on Other Terminations of Service. Except as provided in the Employment Agreement, if Recipient ceases to be
an employee of the Company for any reason that does not result in acceleration or payment pursuant to Section 1(c), Recipient shall immediately forfeit all outstanding but unvested RSUs granted pursuant to this Agreement and Recipient shall
have no right to receive the related Common Stock. 
 (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 A, which is incorporated into and made a part of this agreement. If Recipient fails to designate beneficiaries on Exhibit A, the shares will be delivered to Recipient’s estate. 

(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 the RSUs (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. Promptly following 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 Recipient (which
election must be made on or before the vesting 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 vesting date. If Recipient pays the withholding amount in shares of Common Stock, the Company shall pay to Recipient in cash the amount of any resulting over payment. 

  
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 (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. 
 (1) 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. 
 (2) 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,
the Plan (including without limitation Section 17 thereof) and the Employment Agreement constitutes the entire agreement of the parties with regard to the subjects hereof and may be amended only by written agreement between the Company and
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 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. 

  
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 (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 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. 
 (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
	
	  

		 	Nicholas Konidaris

  
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 EXHIBIT A 
 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 Restricted Stock Units Award Agreement with Electro Scientific Industries, Inc.: 

A. 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.

  

	B.	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 Restricted Stock Units Award Agreement. 

 

							
	  
	 		 		  	Date signed:             , 20    
	Signature	 		 		  	

  
 A - 1Form of Stock Appreciation Rights Agreement

 Exhibit 10.37 
 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 Nicholas Konidaris (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 65,000 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: 
 25% on May 13, 2011 
 25% on May 13, 2012 
 25% on May 13, 2013 

25% on May 13, 2014 
 If Recipient terminates his employment with the Company after Recipient attains age 67 with the intention of not seeking further full-time employment and prior to the final vesting date set forth in this
Section 3, the SAR will continue to vest and be exercisable until the earlier of (i) the final vesting date set forth above and (ii) the third anniversary of the date of termination of employment. 

(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:	 	  
	 		  	Nicholas Konidaris
	Title:	 	  
	 		  	  

		 		 		  	  

		 		 		  	[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, Section 3 of the attached Agreement and the Employment Agreement, dated as of January 7, 2004, by and
between the Company and Recipient, as amended, as the same may be amended, restated or modified from time to time, 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) The two independent physicians
have furnished their written opinion of total disability to the Company; and 

  
 A-1

 (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. Except as otherwise provided in the Employment Agreement: 

(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. 

  
 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) 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”), and the voting securities of the Surviving Company or the Company after the transaction are not listed on an Exchange, then all unvested SARs subject to this award shall vest immediately prior to the closing of
such transaction. 
 (d) 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; 

  
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 (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. 
 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. 
 (e) 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. 

(f) 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

 (g) 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. 

  
 A-5

 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. 
 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. 

  
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