On April 2, 2009, Electro Scientific Industries, Inc. ("ESI"), Zygo Corporation ("Zygo") and Zirkon Merger Sub, LLC ("Merger Sub") entered into a Settlement Agreement and Mutual Release (the "Settlement Agreement"). Pursuant to the Settlement Agreement (i) the parties terminated the Agreement and Plan of Reorganization, dated as of October 15, 2008, among ESI, Zygo and Merger Sub (the "Merger Agreement") and (ii) Zygo paid ESI $5.4 million, with an additional $1.2 million payable if Zygo announces within six months that its board of directors has accepted a proposal for a sale of the company. The Settlement Agreement also contains a mutual release of each party. The Settlement Agreement is filed as Exhibit 10 hereto.

See Item 1.01 above for a description of the Settlement Agreement pursuant to which ESI, Zygo and Merger Sub terminated the Merger Agreement.

(d) Exhibits

Exhibit 10     Settlement Agreement and Mutual Release, dated April 2, 2009, among
               Electro Scientific Industries, Inc., Zirkon Merger Sub, LLC, and
               Zygo Corporation.