The Company’s share-based compensation plans are intended to attract and retain employees and to provide an incentive for them to assist the Company to achieve long-range performance goals and to enable them to participate in long-term growth of the Company. The Company settles restricted stock unit awards and stock option exercises with newly issued common shares.

Rudolph Technologies, Inc. 2018 Stock Plan (the “2018 Plan”). The 2018 Plan provides for the grant of 2,709 stock awards and stock options to employees, directors and consultants at an exercise price equal to or greater than the fair market value of the common stock on the date of grant. Restricted stock units granted under the 2018 Plan typically vest over a three to five-year period for employees and one year for directors; however, other vesting periods are allowable under the 2018 Plan. Restricted stock units granted to employees have time based or performance based vesting. If options were to be granted under the 2018 Plan, they would typically grade vest over a five-year period and expire ten years from the date of

grant. As of December 31, 2019 and 2018, there were shares of common stock available for issuance pursuant to future grants under the 2018 Plan totaling 2,478 and 2,680, respectively.

Rudolph Technologies, Inc. 2009 Stock Plan (the “2009 Plan”). The 2009 Plan provided for the grant of 4,711 stock options and other stock awards to employees, directors and consultants at an exercise price equal to or greater than the fair market value of the common stock on the date of grant. Options granted under the 2009 Plan typically grade vested over a five-year period and expired ten years from the date of grant. Restricted stock units granted under the 2009 Plan typically vested over a three to five-year period for employees and one year for directors; however, other vesting periods were allowable under the 2009 Plan. Restricted stock units granted to employees have time based or performance based vesting. In the second quarter of 2018, the 2009 Plan was terminated and therefore as of December 31, 2019 and 2018, there were no shares of common stock available for issuance pursuant to future grants under the 2009 Plan.

Nanometrics Incorporated 2005 Amended and Restated Equity Incentive Plan (the “2005 Plan”). The 2005 Plan provides for the grant of 4,714 stock options and other stock awards to employees, directors and consultants at an exercise price equal to the fair market value of the common stock on the date of grant. Options granted under the 2005 Plan typically grade vest over a three-year period and expire ten years from the date of grant. Restricted stock units granted under the 2005 Plan typically vest over a three-year period for employees and one year for directors; however, other vesting periods are allowable under the 2005 Plan. Restricted stock units granted to employees have time based or performance based vesting. As of December 31, 2019, there were 1,253 shares of common stock available for issuance pursuant to future grants under the 2005 Plan.

	Year Ended December 31,
	2019			2018			2017
Share-based compensation expense:
Restricted stock units, including all performance and market based awards	$	10,421		$	6,062		$	5,433
Stock options and employee stock purchase options		164			—			237
Total share-based compensation		10,585			6,062			5,670
Tax effect on share-based compensation		2,283			1,362			2,052
Net effect on net income	$	8,302		$	4,700		$	3,618
Effect on earnings per share:
Basic	$	(0.28	)	$	(0.18	)	$	(0.14	)
Diluted	$	(0.28	)	$	(0.18	)	$	(0.14	)

A summary of the Company’s restricted stock unit activity with respect to the years ended December 31, 2019, 2018 and 2017 follows:

	Number of Shares			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2016		914		$	15.29
Granted		225		$	28.23
Vested		(258	)	$	14.80
Forfeited		(65	)	$	17.14
Nonvested at December 31, 2017		816		$	18.50
Granted		228		$	34.80
Vested		(325	)	$	17.73
Forfeited		(80	)	$	22.12
Nonvested at December 31, 2018		639		$	24.26
Granted		271		$	29.58
Assumed in Merger		598		$	31.43
Vested		(366	)	$	25.69
Forfeited		(35	)	$	26.44
Nonvested at December 31, 2019		1,107		$	28.89

As of December 31, 2019, there was $22,230 of total unrecognized compensation cost related to restricted stock units granted under the plans. That cost is expected to be recognized over a weighted average period of 1.9 years.

A summary of the Company’s stock option activity with respect to the years ended December 31, 2019, 2018 and 2017 follows:

	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at December 31, 2016		173		$	12.67
Granted		—			—
Exercised		(114	)		11.37
Expired		—			—
Forfeited		—			—
Outstanding at December 31, 2017		59			15.20
Granted		—			—
Exercised		(22	)		15.20
Expired		—			—
Forfeited		—			—
Outstanding at December 31, 2018		37		$	15.20
Granted		—			—
Assumed in Merger		12			16.27
Exercised		(2	)		14.96
Expired		—			—
Forfeited		—			—
Outstanding at December 31, 2019		47		$	15.49		2.4	$	985
Vested or expected to vest at December 31, 2019		47		$	15.49		2.4	$	985
Exercisable at December 31, 2019		47		$	15.49		2.4	$	985

The total intrinsic value of the stock options exercised during 2019, 2018 and 2017 was $51, $384 and $853, respectively. As of December 31, 2019, there was no unrecognized compensation cost related to stock options granted under the plans.

The options outstanding and exercisable at December 31, 2019 were in the following exercise price ranges:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
$14.08 - $14.08		1		0.7	$	14.08		1	$	14.08
$15.20 - $15.20		35		3.0	$	15.20		35	$	15.20
$15.61 - $18.22		9		0.5	$	16.37		9	$	16.37
$18.79 - $18.79		1		1.2	$	18.79		1	$	18.79
$14.08 - $18.79		47		2.4	$	15.49		47	$	15.49

Rudolph Technologies, Inc. 2018 Employee Stock Purchase Plan (the “2018 ESPP”). The 2018 ESPP was terminated in the third quarter of 2019 as a result of the Merger. Under the terms of the ESPP, eligible employees may have had up to 15% of eligible compensation deducted from their pay and applied to the purchase of shares of Company common stock. The

price the employee would pay for each share of stock was 95% of the fair market value of Company common stock at the end of the applicable six-month purchase period. The ESPP was intended to qualify under Section 423 of the Internal Revenue Code and was a non-compensatory plan as defined by FASB ASC 718, “Stock Compensation.” No stock-based compensation expense attributable to the 2018 ESPP was recorded for the years ended December 31, 2019, 2018 and 2017.

Nanometrics Incorporated Amended and Restated 2003 Employee Stock Purchase Plan (the “2003 ESPP”). Under the terms of the 2003 ESPP, eligible employees may have up to 10% of eligible compensation deducted from their pay and applied to the purchase of shares of Company common stock. The price the employee pays for each share of stock is 85% of the lesser of the fair market value of Company common stock at the beginning or the end of the applicable six-month purchase period. The 2003 ESPP is intended to qualify under Section 423 of the Internal Revenue Code and is a compensatory plan as defined by FASB ASC 718, “Stock Compensation.” Stock-based compensation expense attributable to the 2003 ESPP was $165 for the year ended December 31, 2019.

Through the Company’s employee stock purchase plans, employees purchased 72, 13 and 11 shares during the twelve months ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019 and 2018, there were 236 and 1,206, shares available for issuance under the Company’s employee stock purchase plans, respectively.

The Company has a 401(k) savings plan that allows employees to contribute up to 100% of their annual compensation to the Plan on a pre-tax or after-tax basis, limited to a maximum annual amount as set periodically by the Internal Revenue Service. The plan provides a 50% match of all employee contributions up to 6 percent of the employee’s salary. Matching contributions to the plan totaled $1,317, $1,118 and $1,047 for the years ended December 31, 2019, 2018 and 2017, respectively.