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Exhibit 10.17    
    


 
  AXCELIS TECHNOLOGIES, INC.
  
    EXECUTIVE SEPARATION AGREEMENT    
    


        THIS EXECUTIVE SEPARATION AGREEMENT, dated as of October 18, 2007, is made by and between Axcelis Technologies, Inc. (hereinafter referred to as the
"Company") and Mark J. Namaroff (hereinafter referred to as "Executive"). In consideration of the mutual covenants contained herein, the parties agree as follows: 



        1.    Termination Date.    Executive's employment with the Company will terminate on November 9, 2007 (the
"Termination Date"). As described in Section 2, Executive will receive the separation pay and benefits under this Agreement. Prior to the Termination Date, the Executive shall cooperate with
the reasonable requests of the Company to support the transition of the Executive's duties to other Company personnel. 


        2.    Termination Compensation.    



        2.1.    Separation Pay.    The Company will make the following lump sum payments to the Executive: 



        (a)   within
30 days of the Termination Date (or Executive's date of execution of this Agreement, whichever is later), an amount equal to $15,000, less legally required
payroll tax deductions; and 


        (b)   not
later than January 18, 2008, an amount equal to $138,750.48, less legally required payroll tax deductions, 


totaling
$153,750.48, which equals 39 weeks of the Executive's base pay at the rate of $3,942.32 per week. 




        2.2.    Axcelis Time Management (ATM).    After the Termination Date, Executive will receive a lump sum amount for his
accrued ATM balance, if any. Overdrawn ATM time will be deducted from Executive's final paycheck. 


        2.3.    COBRA Payments.    If Executive elects to continue health coverage under the Company's health plan in
accordance with the continuation requirements of COBRA, the Company will pay for the full cost of such coverage until the earlier of (i) the date Executive begins full-time
employment or full-time self-employment; or (ii) the end of the ninth month after the Date of Termination. 


        2.4.    Benefits.    Detailed information on the impact of Executive's separation on Company-provided benefits is set
forth on Attachment A which is attached hereto and incorporated herein. 


        2.5.    Transition Assistance.    During the period from the Date of Termination until the date 6 (six) months after
the Date of Termination (the "Transition Period"), the following provisions will apply: 



        (a)   Laptop Computer.    The Company agrees to allow the Executive to retain the laptop computer used by him. 


        (b)   Email.    The Company agrees to allow Executive to maintain email on the Company's server until the earlier of
the end of the Transition Period or the date on which Executive commences other employment. 



        (c)   Cell Phone.    The Company agrees to assign to the Executive the mobile phone owned by the Company and used by
the Executive as of the Date of Termination and pay the Executive a lump sum amount to cover six months' of cell phone premiums at the Executive's plan level (but not more than $99 per month). 









 


        (d)   Outplacement.    At the request of Executive, the Company will pay up to $12,500 for an outplacement service
for services rendered in assisting Executive in locating other employment, provided such payments are contingent upon Executive's cooperation with the outplacement service and upon active efforts by
Executive to locate another position. 




        2.6.    Extension of Exercisability of Stock Options.    The Compensation Committee of the Board of Directors has
resolved, in accordance with Section 6.03(d) of the 2000 Stock Plan, to extend the exercisability of the vested non-qualified stock options held by the Executive as set forth on  Schedule 1
hereto to the earlier of (A) the expiration date of the stock option as set forth on  Schedule 1 or (B) November 9, 2008, which is the first anniversary of the Executive's termination
of employment.
 




        3.    Executive Acknowledgement of Compensation.    The Executive acknowledges that in exchange for entering into this
Agreement the Executive has received good, sufficient and valuable consideration in excess of that to which the Executive would otherwise have been entitled in the absence of this Agreement. The
Executive acknowledges that the Executive has been paid in full for any and all wages, including accrued unused vacation pay. Unless otherwise provided for expressly in this Agreement, all other
benefits have ceased as of the Termination Date. 


        4.    Effect of Breach on Compensation.    The Executive agrees that the compensation and benefits contained in this
Agreement and which flow to the Executive from the Company are subject to termination, reduction or cancellation in the event that the Executive takes any action or engages in any conduct deemed by
the Company to be in violation of this Agreement, provided however, that prior to any such termination, the Company will notify the Executive of the particular concern and provide the Executive with a
reasonable opportunity to cure. 


        5.    Executive Obligations.    



        5.1.    Return of Property.    The Executive shall return all papers, files, documents, computers, reference guides,
equipment, keys, identification, credit cards, software, computer access codes, disks and institutional manuals, or other property belonging to the Company within one week after the Termination Date;
provided the Executive shall return the laptop computer referenced in Section 2 above not later than the end of the Transition Period. The Executive shall not retain any copies, duplicates,
reproductions or excerpts of any of the Company's property. The Executive may retain copies of all agreements between the Executive and the Company and other documents relating to his personal
performance. 


        5.2.    Nondisclosure of Confidential Information.    During the course of the Executive's employment with the
Company, the Executive has become acquainted with and/or developed confidential information
belonging to the Company and its customers. The Executive agrees not to use or to disclose to any person or entity any confidential information of the Company or of any past or present customer of the
Company, including but not limited to financial data or projections, customer lists, projects, economic information, systems, plans, methods, procedures, operations, techniques, know-how,
trade secrets or merchandising or marketing strategies. In addition, Executive shall continue to be bound by the terms of Employee Invention Assignment, and Confidentiality Agreement, which the
Executive executed in connection with his employment. That Agreement is affixed hereto and incorporated by reference as Attachment B. The
provisions of this section 5.2 shall not apply to any such confidential information that is (a) presently publicly available or a matter of public knowledge or public domain generally
without breach of this Agreement, or (b) lawfully received by the Executive from a third party who is or was not bound in any confidential relationship to the Company, or (c) required to
be disclosed by the Executive pursuant to judicial or government order, provided the Executive shall give the Company reasonable notice prior to such disclosure and shall comply with any applicable
protective order. 



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        5.3.    Nondisparagement.    Provided the Executive is not in breach of his obligations under this Agreement, the
Company agrees not to disparage or make negative statements about the Executive. The Executive agrees not to disparage or make negative statements about the Company or any of its officers, directors,
agents, employees, successors and assigns. 


        5.4.    Non-Compete and Non-Solicitation.    The Executive hereby agrees with the Company that
for a period of 12 months following the Termination Date: 



        (a)   The
Executive shall not, without the prior written consent of the Chief Executive Officer of the Company, directly or indirectly, engage in, be employed by, act as a
consultant or advisor to, be a director, officer, owner or partner of, or acquire an interest in, any business engaged in manufacturing implant or dry strip semiconductor processing systems (a
"competitive business"), nor directly or indirectly have any interest in, own, manage, operate, control, be connected with as a stockholder, lender, joint venturer, officer, employee, partner or
consultant, or otherwise engage, invest or participate in any competitive business; provided, however, that nothing contained in this Section 5.4 shall prevent the Executive from investing or
trading in publicly traded stocks, bonds, commodities or securities or in real estate or other forms of investment for Executive's own account and benefit (directly or indirectly); 



        (b)   The
Executive shall not actively solicit any employee of the Company or any of its subsidiaries or affiliates to leave the employment thereof; and the Executive shall
not enter onto Company property without prior written consent from the Chief Executive Officer of the Company or other executive officer of the Company; 


        (c)   The
Executive shall not induce or attempt to induce any customer, supplier, licensor, licensee or other individual, corporation or business organization having a
business relationship with the Company or its subsidiaries or affiliates to cease doing business with the Company or its subsidiaries or affiliates or in any way interfere with the relationship
between any such customer, supplier, licensor, licensee or other individual, corporation or business organization and the Company or its subsidiaries or affiliates. Solicitation of customers for the
purposes of this obligation refers to existing and/or contemplated products as of the time of this Agreement; 


        (d)   The
applicable time periods set forth in this Section 5.4 shall be extended by the time of any breach by the Executive of any terms of this Agreement; 


        (e)   The
provisions of Section 5.4 contain the sole and exclusive obligations of the Executive with respect to non-competition and
non-solicitation other than those provided by law, if any; and 


        (f)    The
Company acknowledges that negotiations or discussions between or among Executive and any third party about prospective employment, business ventures, or other
opportunities shall not, alone, constitute a breach of Section 5.4(a) of this Agreement. 




        5.5.    Resignations from Corporate Office.    Not later than the Termination Date, the Executive will execute and
deliver to the Company his resignation as a Senior Vice President of the Company and any subsidiaries of the Company, attached here to as  Attachment C. Executive expressly acknowledges that the
compensation payable to Executive under this Agreement is in full satisfaction of any
compensation due to him in connection with his corporate positions described in this Section 5.5. It is understood that the force and effect of  Attachment C arises exclusively in the context
of, and as part of, this Agreement. 


        5.6.    Cooperation.    The Executive will cooperate fully with the Company in its defense of or other participation
in any administrative, judicial or other proceeding arising from any charge, complaint or other action which has been or may be filed against the Company and with respect to 



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which
Executive has knowledge, provided, however, that the Company will pay all reasonable costs associated with such cooperation, including compensation for the Executive's time at the Executive's
usual, and reasonable, rate. The Executive agrees to be responsive to requests for information related to the smooth transition of a successor to his position. 




        6.    SEC Reporting and Applicability of the Company's Insider Trading Policy.    



        6.1.    Rule 144.    For the purposes of Rule 144 promulgated by the Securities Exchange Commission, the
Executive shall cease to be an "affiliate" of the Company on the Termination Date. 


        6.2.    Section 16 Reporting.    The Executive shall cease to be a reporting person under the Securities
Exchange Act of 1934, as amended, as of the Termination Date, provided however, the Executive must file a Form 4 with the SEC to report any purchase, sale, or option exercise after the
Termination Date if the transaction occurs within six months following a Form 4 transaction going the opposite way (e.g., sale vs. purchase) prior to the Termination Date. 




        7.    Insider Trading Policy.    Assuming the Executive does not acquire material non-public information
after the Termination Date, beginning on the date two trading days after the Company's public announcement of its earnings for the fiscal quarter ending after the Termination Date, the Executive will
no longer be subject to restrictions on trading arising under the Company's insider trading policy. 


        8.    General Release and Covenant Not to Sue.    



        8.1.    Release.    In consideration of the Company's covenants in this Agreement, the Executive hereby releases and
discharges the Company and its officers, directors, agents, employees, successors and assigns ("Released Parties") from any and all claims by the Executive arising before the signing of this
Agreement, including all claims arising out of the Executive's employment with the Company or the termination thereof (except (1) those relating to performance of this Agreement and
(2) the Company's obligations under the Indemnification Agreement between the Executive and the Company dated May 12, 2005, a copy of which is attached hereto as  Attachment D (the
"Indemnification Agreement")) and claims arising under common law and claims arising under federal or state labor and
employment laws and laws prohibiting discrimination on the basis of age, sex, race, national origin or disability. The laws referred to in the preceding sentence include Title VII of the Civil Rights
Act of 1964, as amended; the Equal Pay Act of 1963, as amended; the Age Discrimination in Employment Act of 1967 (ADEA), as amended; the Fair Labor Standards Act of 1938, as amended; the Americans
With Disabilities Act of 1990, as amended; the Rehabilitation Act of 1973, as amended; the Family and Medical Leave Act of 1993, as amended; Chapter 151B of the Massachusetts General Laws,
Chapter 149 of the Massachusetts General Laws; the Massachusetts Civil Rights Act and the Massachusetts Equal Rights Law; the Worker Adjustment and Retraining Notification ("WARN") Act;
Maryland Ann. Code Article 100 Sections 88-94, and Maryland Ann. Code Article 49B, Sections 1 et seq; or any
other state or federal law, order, public policy or regulation affecting or relating to the rights and/or claims of employees. Nothing in this Agreement shall be construed to be a release of certain
ADEA and Title VII rights that is not allowed by law, except that the Executive waives and shall not accept any damages from any such claims. 



        8.2.    Covenant Not to Sue.    The Executive represents and warrants that he has not filed any complaints, charges,
or claims for relief against the Released Parties with any local, state or federal court or administrative agency. The Executive agrees and covenants not to sue or bring any claims or charges against
the Released Parties with respect to any matters arising out of or relating to the Executive's employment with or separation from the Company, other than enforcement of the terms of this Agreement or
the Indemnification Agreement. In the event that the Executive 



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institutes
any such action, that claim shall be dismissed upon presentation of this Agreement and he shall reimburse the Company for all legal fees and expenses incurred in defending such claim and
obtaining its dismissal. 


        8.3.    No Implied Admission.    It is understood and agreed that this Agreement does not constitute any admission by
the Company that any action taken with respect to the Executive was unlawful or wrongful, or that such action constituted a breach of contract or violated any federal or state law, policy, rule or
regulation. 




        9.    Compliance with Federal Older Workers Benefit Protection Act of 1990.    



        9.1.    Time To Consider Agreement.    The Executive acknowledges that he has been advised in writing to consult with
an attorney and has had ample opportunity to consult with and review this Agreement with an attorney of his choice, and has been given a period of at least forty-five (45) days
within which to consider whether to sign this Agreement. If the Executive has signed this Agreement prior to the end of this forty-five (45) day period, he represents that he has
done so knowingly and voluntarily. 


        9.2.    Revocation Right.    It is agreed and understood that for a period of seven (7) days following the
execution of this Agreement, which period shall end at 5:00 p.m. on the seventh day following the date of execution by the Executive, he may revoke this Agreement. This Agreement will not
become effective until this revocation period has expired. This seven (7) day revocation period cannot be shortened by agreement of the parties or by any other means. 




        10.    Miscellaneous.    



        10.1.    Availability of Equitable Remedies.    The Executive agrees and warrants that the covenants contained herein
are reasonable, that valid consideration has been and will be received therefor and that the agreements set forth herein are the result of arms-length negotiations between the parties
hereto. The Executive recognizes and acknowledges that the provisions of Section 5 are vitally important to the continuing welfare of the Company, and its subsidiaries and affiliates, and that
money damages constitute a totally inadequate remedy for any violation thereof. Accordingly, in the event of
any such violation by the Executive, the Company, and its subsidiaries and affiliates, in addition to any other remedies they may have, shall have the right to institute and maintain a proceeding to
compel specific performance thereof or to obtain an injunction restraining any action by the Executive in violation of Section 5. 


        10.2.    Severability.    In the event that any provision of this Agreement is found by a court, arbitrator or other
tribunal to be illegal, invalid or unenforceable, then such provision shall not be voided, but shall be enforced to the maximum extent permissible under applicable law, and the remainder of this
Agreement shall remain in full force and effect. 


        10.3.    Entire Agreement.    This Agreement and its Exhibits constitutes the entire agreement between the parties
about or relating to the Executive's termination of employment from the Company, or the Company's obligations to the Executive with respect to his termination and fully supersedes any and all prior
agreements (including but not limited to the Change of Control Agreement between the Company and the Executive dated May 12, 2005) or understanding between the parties, other than the
Indemification Agreement. The Company represents and warrants that there has been no Change of Control as defined in the above-mentioned Change of Control Agreement prior to the date hereof and that
no Change of Control transaction is contemplated by the Company as of the date hereof. Upon execution of this Agreement, the obligations of the Executive and the Company relating to the Executive's
employment by the Company will arise solely and exclusively out of this Agreement and the Indemnification Agreement. 



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        10.4.    Binding Benefit.    This Agreement shall be binding on the parties and upon their heirs, administrators,
representatives, executors, successors and assigns and shall inure to their benefit and to that of their heirs, administrators, representatives, executors, successors and assigns. 


        10.5.    Amendments.    This Agreement may not be altered, amended or modified, except by a further written document
signed by the Executive and the Company. 


        10.6.    Governing Law.    This Agreement shall be governed by the laws of the Commonwealth of Massachusetts, without
regard to or application of choice-of-law rules or principles. 


        10.7.    Limitations on Recovery.    In the event that the Executive institutes legal proceedings to enforce this
Agreement, he agrees that the sole remedy available shall be enforcement of the terms of this Agreement and/or a claim for damages resulting from the breach of this Agreement, but that under no
circumstances shall the Executive be entitled to receive or collect any damages for claims that Executive has released under this Agreement. 



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        IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above. 



	 	 	AXCELIS TECHNOLOGIES, INC.
	
 	
 	

By:	
 	

/s/  LYNNETTE C. FALLON      

	 	 	Title:	 	 
	

 	
 	

/s/  MARK J. NAMAROFF      
 Mark J. Namaroff





Attachments  



	Schedule 1	 	Mark J. Namaroff Non-Qualified Stock Options
	

Attachment A	
 	

Benefits After Termination Date
	Attachment B	 	Employee Invention Assignment and Confidentiality Agreement
	Attachment C	 	Resignation from Office
	Attachment D	 	Indemnification Agreement dated May 12, 2005




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Schedule 1  


Mark J. Namaroff Non-Qualified Stock Options  



	Award Date
	 	Price
	 	Shares
	 	% Vested
	 	Expiration Date

	1/27/1998	 	$	10.44	 	3,388	 	100	%	1/27/2008
	

7/10/2000	
 	
$	

22.00	
 	

4,625	
 	

100	
%	

7/10/2010
	

6/2/2001	
 	
$	

15.38	
 	

10,000	
 	

100	
%	

6/2/2012
	

7/30/2001	
 	
$	

14.10	
 	

6,500	
 	

100	
%	

7/31/2011
	

2/4/2002	
 	
$	

13.20	
 	

6,500	
 	

100	
%	

7/31/2011
	

6/21/2002	
 	
$	

10.28	
 	

6,000	
 	

100	
%	

6/21/2012
	

12/20/2002	
 	
$	

5.85	
 	

6,000	
 	

100	
%	

6/21/2012
	

1/2/2003	
 	
$	

5.83	
 	

5,000	
 	

100	
%	

1/2/2013
	

5/1/2003	
 	
$	

5.70	
 	

6,000	
 	

100	
%	

5/1/2013
	

11/3/2002	
 	
$	

11.48	
 	

6,000	
 	

100	
%	

5/1/2013
	

6/25/2004	
 	
$	

11.87	
 	

6,250	
 	

100	
%	

6/25/2014
	

12/27/2004	
 	
$	

7.97	
 	

6,250	
 	

75	
%	

6/25/2014




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Attachments A and B are omitted because the content of those attachments is post-termination benefits and obligations applicable to all U.S. employees of the
Company.  


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Attachment C  


 
  LETTER OF RESIGNATION    
    



	 	 	November 9, 2007





To:
The Board of Directors of Axcelis Technologies, Inc.

108 Cherry Hill Drive

Beverly, MA 01982 


Dear
Sirs: 


        Please
accept tender of my resignation from the office of Senior Vice President, Strategic Marketing effective immediately. 



	 	 	Very truly yours,
	

 	
 	

/s/  MARK J. NAMAROFF      
 Mark J. Namaroff




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Exhibit 10.17


AXCELIS TECHNOLOGIES, INC. EXECUTIVE SEPARATION AGREEMENT

LETTER OF RESIGNATION