Document:

www.eXFILE.com 888-775-4789 --- NEXX SYSTEMS, INC.  FORM S-1

    EXHIBIT
10.3

     

    RESTRICTED
STOCK AGREEMENT

    

    NEXX
SYSTEMS, INC.

    

    

    AGREEMENT
made as of the 23 day of June, 2009, between NEXX Systems, Inc., a Delaware
corporation (the “Company”), and Thomas Walsh (the “Executive”).

    

    WHEREAS,
the Company has entered into an offer letter dated as of September 13, 2008 with
the Executive, a copy of which is attached hereto as Exhibit A (the “Offer
Letter”) and the Executive commenced employment with the Company on October 6,
2008 (the “Start Date”);

    

    WHEREAS,
pursuant to the Offer Letter, the Company desires to offer to the Executive
shares of the Company’s common stock, $0.01 par value per share (“Common
Stock”), all on the terms and conditions hereinafter set forth;

    

    WHEREAS,
Executive wishes to accept said offer; and

    

    WHEREAS,
the parties hereto understand and agree that any terms used and not defined
herein have the meanings ascribed to such terms in the Offer Letter and that any
and all references herein to employment of the Executive by the Company shall
include the Executive’s employment or service as an employee or consultant of
the Company or any Affiliate.

    

    NOW,
THEREFORE, in consideration of the promises and the mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

    

    1.         
  Terms of
Grant.  The Executive hereby accepts the offer of the Company
to issue to the Executive, in accordance with the terms of this Agreement,
4,490,920 shares of the Company’s Common Stock (such shares, subject to
appropriate adjustment in the event of a stock split, stock dividend,
combination or other similar recapitalization with respect to the Common Stock,
the “Granted Shares”) at a purchase price per share of $0.01 (the “Purchase
Price”), receipt of which is hereby acknowledged by the Company.

    

    2.1.           Company’s Lapsing Repurchase
Right.

    

    (a)           Lapsing Repurchase
Right.  Except as set forth in Subsections 2.1(b), 2.1(c) and
2.1(d) hereof, in the event that for any reason the Executive is no longer an
employee or consultant of the Company or an Affiliate prior to October 6, 2012,
the Company (or its designee) shall have the option, but not the obligation, to
purchase from the Executive (or the Executive’s Estate), and, in the event the
Company exercises such option, the Executive (or the Executive’s Estate) shall
be obligated to sell to the Company (or its designee), at a price per Granted
Share equal to the Purchase Price, all or any part of the Granted Shares set
forth in clauses (i) and (ii) below (the “Lapsing Repurchase Right”). The
Company’s Lapsing Repurchase Right shall be valid for a period of sixty (60)
days commencing with the date of such termination of employment or
service.  Notwithstanding any other provision hereof, in the event

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the
Company is prohibited during such one year period from exercising its Lapsing
Repurchase Right by applicable law, then the time period during which such
Lapsing Repurchase Right may be exercised shall be extended until thirty (30)
days after the Company is first not so prohibited.

    

    (i)           If
such termination is prior to the first anniversary of the Start Date, the
Company shall have the option to repurchase all of the Granted Shares acquired
by the Executive hereunder.

    

    (ii)           If
such termination is on or after the first anniversary of the Start Date, but
prior to October 6, 2012, the Company shall have the option to repurchase all of
the Granted Shares less 93,553 of the Granted Shares for each full month period
elapsed after the Start Date that the Executive continues to serve as an
employee, director or consultant of the Company or an Affiliate; provided that
in the event such termination is on or after September 6, 2012 but prior to
October 6, 2012, the Company shall have the option to repurchase 93,553 of the
Granted Shares.

    

    (iii)           Notwithstanding
the provisions of subsections (i) and (ii) above, if such termination
occurs:

    

     (A) prior to October 6, 2009 and
the Executive has been terminated by the Company without Cause (as defined in
the Offer Letter), then the Lapsing Repurchase Right may be exercised by the
Company as to only 2,245,460 of the Granted Shares;

    

     (B) on or after October 6, 2009
but prior to October 6, 2010 and the Executive has been terminated by the
Company without Cause, then the Lapsing Repurchase Right may be exercised by the
Company as to 2,245,460 of the Granted Shares less those number of Granted
Shares equal to the calendar days of and from October 6, 2009 through the date
of notice of termination without Cause multiplied by 3,076 shares per calendar
day  [For illustration purposes only, if Executive’s employment is
terminated without Cause on January 2, 2001 (the 100th
calendar day from October 6, 2010), then the number of Granted Shares to which
the lapsing repurchase Right shall remain in effect shall equal 1,937,860
(2,245,460 -307,600)].; and

    

    (C) on or after October 6, 2010 and the
Executive has been terminated by the Company without Cause, then none of the
Granted Shares shall be subject to the Lapsing Repurchase Right.

    

    (b)           Effect of Termination for
Disability or upon Death.  The following rules apply if the
Executive ceases to be an employee or consultant of the Company or an Affiliate
by reason of Disability or death:  to the extent the Company’s Lapsing
Repurchase Right has not lapsed as of the date of Disability or death, as case
may be, the Company may exercise such Lapsing Repurchase Right; provided,
however, that the Company’s Lapsing Repurchase Right shall be deemed to have
lapsed to the extent of a pro rata portion of the Granted Shares through the
date of Disability or death, as would have lapsed had the Executive not become
Disabled or died, as the case may be.  The proration shall be based
upon the number of days accrued in such current vesting period prior to the
Executive’s date of Disability or death, as the case may be.

    

    
      
         

      

      
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    (c)           Effect of a For Cause
Termination.   Notwithstanding anything to the contrary
contained in this Agreement, in the event the Company or an Affiliate terminates
the Executive’s employment or service for Cause or in the event the
Administrator determines, within one year after the Executive’s termination,
that either prior or subsequent to the Executive’s termination the Executive
engaged in conduct that would constitute Cause, all of the Granted Shares then
held by the Executive shall be forfeited to the Company immediately as of the
time the Executive is notified that he has been terminated for Cause or that he
engaged in conduct which would constitute Cause.

     

    (d) 
         Effect of Certain Events
Following a Change of Control.  Except as otherwise provided in
Subsection 2.1(c) above, and notwithstanding the provisions of subsections (i),
(ii) and (iii) above), if Executive’s employment is either terminated by the
Company either without Cause or by the Executive due to a Constructive
Termination (as defined in the Offer Letter), each such event occurring within
six months following a Change of Control (as defined in the Offer Letter), then
none of the Granted Shares shall be subject to the Lapsing Repurchase
Right.

     

    (e)           Closing.  In
the event that the Company exercises the Lapsing Repurchase Right, the Company
shall notify the Executive, or, in the case of the Executive’s death, his
Estate, in writing of its intent to repurchase the Granted
Shares.  Such notice may be mailed by the Company up to and including
the last day of the time period provided for above for exercise of the Lapsing
Repurchase Right.  The notice shall specify the place, time and date
for payment of the repurchase price (the “Closing”) and the number of Granted
Shares with respect to which the Company is exercising the Lapsing Repurchase
Right.  The Closing shall be not less than ten days or more than 60
days from the date of mailing of the notice, and the Executive or the
Executive’s Estate with respect to the Granted Shares which the Company elects
to repurchase shall have no further rights as the owner thereof from and after
the date specified in the notice.  At the Closing, the repurchase
price shall be delivered to the Executive or the Executive’s Estate and the
Granted Shares being repurchased, duly endorsed for transfer, shall, to the
extent that they are not then in the possession of the Company, be delivered to
the Company by the Executive or the Executive’s Estate.

    

    (f)           Escrow.  The
certificates representing all Granted Shares acquired by the Executive hereunder
which from time to time are subject to the Lapsing Repurchase Right shall be
delivered to the Company and the Company shall hold such Granted Shares in
escrow as provided in this Subsection 2.1(f).  Promptly following
receipt by the Company of a written request from the Executive, the Company
shall release from escrow and deliver to the Executive a certificate for the
whole number of Granted Shares, if any, as to which the Company’s Lapsing
Repurchase Right has lapsed. In the event of a
repurchase by the Company of Granted Shares subject to the Lapsing Repurchase
Right, the Company shall release from escrow and cancel a certificate for the
number of Granted Shares so repurchased.  Any securities distributed
in respect of the Granted Shares held in escrow, including, without limitation,
shares issued as a result of stock splits, stock dividends or other
recapitalizations, shall also be held in escrow in the same manner as the
Granted Shares.

    

    
      
         

      

      
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    (g)           Prohibition on
Transfer.  The Executive recognizes and agrees that all Granted
Shares which are subject to the Lapsing Repurchase Right may not be sold,
transferred, assigned, hypothecated, pledged, encumbered or otherwise disposed
of, whether voluntarily or by operation of law, other than to the Company (or
its designee).  However, the Executive, with the approval of the
Administrator, may transfer the Granted Shares for no consideration to or for
the benefit of the Executive’s Immediate Family (including, without limitation,
to a trust for the benefit of the Executive’s Immediate Family or to a
partnership or limited liability company for one or more members of the
Executive’s Immediate Family), subject to such limits as the Administrator may
establish, and the transferee shall remain subject to all the terms and
conditions applicable to this Agreement prior to such transfer and each such
transferee shall so acknowledge in writing as a condition precedent to the
effectiveness of such transfer.  The term “Immediate Family” shall
mean the Executive’s spouse, former spouse, parents, children, stepchildren,
adoptive relationships, sisters, brothers, nieces and nephews and grandchildren
(and, for this purpose, shall also include the Executive. The Company shall not be
required to transfer any Granted Shares on its books which shall have been sold,
assigned or otherwise transferred in violation of this Subsection 2.1(g), or to
treat as the owner of such Granted Shares, or to accord the right to vote as
such owner or to pay dividends to, any person or organization to which any such
Granted Shares shall have been so sold, assigned or otherwise transferred, in
violation of this Subsection 2.1(g).

    

    (h)           Failure to Deliver Granted
Shares to be Repurchased.  In the event that the Granted Shares
to be repurchased by the Company under this Agreement are not in the Company’s
possession pursuant to Subsection 2.1(f) above or otherwise and the Executive or
the Executive’s Estate fails to deliver such Granted Shares to the Company (or
its designee), the Company may elect (i) to establish a segregated account in
the amount of the repurchase price, such account to be turned over to the
Executive or the Executive’s Estate upon delivery of such Granted Shares, and
(ii) immediately to take such action as is appropriate to transfer record title
of such Granted Shares from the Executive to the Company (or its designee) and
to treat the Executive and such Granted Shares in all respects as if delivery of
such Granted Shares had been made as required by this Agreement.  The
Executive hereby irrevocably grants the Company a power of attorney which shall
be coupled with an interest for the purpose of effectuating the preceding
sentence.

    

    2.2           General Restrictions on
Transfer of Granted Shares.

    

    (a)           Limitations on
Transfer.  In addition to the restrictions set forth above in
Section 2.1, the Granted Shares acquired by the Executive hereunder and no
longer subject to the provisions of Section 2.1 herein (the “Vested Shares”)
shall not be transferred by the Executive (except as permitted herein), shall be
subject to the provisions of Sections 2.1 (f), (g) and (h) above and shall be
subject to the repurchase rights described herein.

    

    (b)           Right to Repurchase on
Proposed Transfer.  It shall be a condition precedent to the
validity of any sale or other transfer of any Vested Shares by the Executive
that the following restrictions be complied with (except as hereinafter
otherwise provided):

    

    
      
         

      

      
        B-4

        
          

        

      

      
         

      

    

    
      	
            	
              (i)

            	
              No
      Vested Shares owned by the Executive may be sold, pledged or otherwise
      transferred (including by gift or devise) to any person or entity,
      voluntarily, or by operation of law, except in accordance with the terms
      and conditions hereinafter set
forth.

            

    

    

    
      	
            	
              (ii)

            	
              Before
      selling or otherwise transferring all or part of the Vested Shares, the
      Executive shall give written notice of such intention to the Company which
      notice shall include the name of the proposed transferee, the proposed
      purchase price per share, the terms of payment of such purchase price and
      all other matters relating to such sale or transfer and shall be
      accompanied by a copy of the binding written agreement of the proposed
      transferee to purchase the Vested Shares of the Executive.  Such
      notice shall constitute a binding offer by the Executive to sell to the
      Company such number of the Vested Shares then held by the Executive as are
      proposed to be sold in the notice at the monetary price per share equal to
      the price at which the Company last issued shares of the Company’s Common
      Stock or options to employees to purchase Common Stock based upon an
      independent third party appraisal designed to comply with the provisions
      of Section 409A of the Code (provided, however, that the Company shall not
      be required to meet any non-monetary terms of the proposed transfer,
      including, without limitation, delivery of other securities in exchange
      for the Vested Shares proposed to be sold).  The Company shall
      give written notice to the Executive as to whether such offer has been
      accepted in whole by the Company within 60 days after its receipt of
      written notice from the Executive.  The Company may only accept
      such offer in whole and may not accept such offer in part.  Such
      acceptance notice shall fix a time, location and date for the closing on
      such purchase (“Closing Date”) which shall not be less than ten nor more
      than sixty days after the giving of the acceptance notice; provided,
      however, if any of the Shares to be sold pursuant to this Section 2.2(b)
      have been held by the Executive for less than six months, then the Closing
      Date may be extended by the Company until no more than ten days after such
      Shares have been held by the Executive for six months.  At the
      Closing, the Executive shall accept payment as set forth herein and shall
      deliver to the Company in exchange therefor the Granted Shares being
      repurchased, duly endorsed for transfer, to the extent that they are not
      then in the possession of the
Company.

            

    

    

    
      	
            	
              (iii)

            	
              If
      the Company shall fail to accept any such offer, the Executive shall be
      free to sell all, but not less than all, of the Vested Shares set forth in
      his notice to the designated transferee at the price and terms designated
      in the Executive’s notice, provided that (i) such sale is consummated
      within six months after the giving of notice by the Executive to the
      Company as aforesaid, (ii) the transferee first agrees in writing to be
      bound by the provisions of this Section 2.2(b) so that he (and all
      subsequent transferees) shall thereafter only be permitted to sell or
      transfer the Vested Shares in accordance with the terms hereof; and (iii)
      such sale otherwise meets the obligations of the Executive (or his
      Permitted Transferees as described in subsection (v) below) under the
      terms of the Amended and Restated Right of First Refusal and Co-Sale
      Agreement dated as of June 27, 2008 (the “Right of First Refusal
      Agreement”), as the same may be amended from time to
      time.  After the expiration of such six months, the provisions
      of this Section 2.2(b) shall again apply with respect to any proposed
      voluntary transfer of the Vested Shares.  The provisions of this
      Agreement shall take precedence over the provisions of Section 3 of the
      Right of First Refusal Agreement.

            

    

    

    
      
         

      

      
        B-5

        
          

        

      

      
         

      

    

    
      	
            	
              (iv)

            	
              The
      provisions of this Section 2.2(b) may be waived by the
      Company.  Any such waiver may be unconditional or based upon
      such conditions as the Company may
impose.

            

    

     

    
      
        	
              	
                (v)

              	
                      
                  The
      restrictions on transfer contained in this Section 2.2(b) shall not apply
      to (a) transfers by the Executive to his spouse or children or to a trust
      for the benefit of his spouse or children, (b) transfers by the Executive
      to his guardian or conservator, and (c) or transfers by the Executive, in
      the event of his death, to his executor(s) or administrator(s) or to
      trustee(s) under his will (collectively, “Permitted Transferees”);
      provided however, that in any such event the Vested Shares so transferred
      in the hands of each such Permitted Transferee shall remain subject to
      this Agreement, and each such Permitted Transferee shall so acknowledge in
      writing as a condition precedent to the effectiveness of such
      transfer.

                

              

      

       

    

    (c)           The
provisions of Section 2.2 (a) and (b) shall terminate upon the effective date of
the registration of the Shares pursuant to the Securities Exchange Act of
1934.

    

    (d)           The
Executive agrees that in the event the Company proposes to offer for sale to the
public any of its equity securities and such Executive is requested by the
Company and any underwriter engaged by the Company in connection with such
offering to sign an agreement restricting the sale or other transfer of Shares,
then it will promptly sign such agreement and will not transfer, whether in
privately negotiated transactions or to the public in open market transactions
or otherwise, any Shares or other securities of the Company held by him during
such period as is determined by the Company and the underwriters, not to exceed
90 days following the closing of the offering, plus such additional period of
time as may be required to comply with Marketplace Rule 2711 of the National
Association of Securities Dealers, Inc. or similar rules thereto (such period,
the “Lock-Up Period”).  Such agreement shall be in writing and in form
and substance reasonably satisfactory to the Company and such underwriter and
pursuant to customary and prevailing terms and
conditions.  Notwithstanding whether the Executive has signed such an
agreement, the Company may impose stop-transfer instructions with respect to the
Shares or other securities of the Company subject to the foregoing restrictions
until the end of the Lock-Up Period.

    

    (e)           The
Executive acknowledges and agrees that neither the Company nor, its shareholders
nor its directors and officers, has any duty or obligation to disclose to the
Executive any material information regarding the business of the Company or
affecting the value of the Shares before, at the time of, or following a
termination of the employment of the Executive by the Company or an Affiliate,
including, without limitation, any information concerning plans for the Company
to make a public offering of its securities or to be acquired by or merged with
or into another firm or entity.

    

    
      
         

      

      
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    3.           Legend.  All
certificates representing the Granted Shares to be issued to the Executive
pursuant to this Agreement shall have endorsed thereon a legend substantially as
follows:

    

    “The
shares represented by this certificate are subject to restrictions set forth in
a Restricted Stock Agreement dated as of March __, 2009 with this Company, a
copy of which Agreement is available for inspection at the offices of the
Company or will be made available upon request.”

    

    4.           Purchase for Investment;
Securities Law Compliance.  The Executive hereby represents and
warrants that he is acquiring the Granted Shares for his own account, for
investment, and not with a view to, or for sale in connection with, the
distribution of any such Granted Shares. The Executive specifically acknowledges
and agrees that any sales of Granted Shares shall be made in accordance with the
requirements of the Securities Act of 1933, as amended, in a transaction as to
which the Company shall have received an opinion of counsel satisfactory to it
confirming such compliance.  The Executive shall be bound by the
provisions of the following legend which shall be endorsed upon the
certificate(s) evidencing the Shares issued:

    

    “The
shares represented by this certificate have been taken for investment and they
may not be sold or otherwise transferred by any person, including a pledgee,
unless (1) either (a) a Registration Statement with respect to such shares shall
be effective under the Securities Act of 1933, as amended, or (b) the Company
shall have received an opinion of counsel satisfactory to it that an exemption
from registration under such Act is then available, and (2) there shall have
been compliance with all applicable state securities laws.”

    

    5.           Rights as a
Stockholder.  The Executive shall have all the rights of a
stockholder with respect to the Granted Shares, including voting and dividend
rights, subject to the transfer and other restrictions set forth
herein.

    

    6.           Tax Liability of the
Executive and Payment of Taxes. The Executive acknowledges and agrees
that any income or other taxes due from the Executive with respect to the
Granted Shares issued pursuant to this Agreement, including, without limitation,
the Lapsing Repurchase Right, shall be the Executive’s
responsibility.  Without limiting the foregoing, the Executive agrees
that, to the extent that the lapsing of restrictions on disposition of any of
the Granted Shares or the declaration of dividends on any such shares before the
lapse of such restrictions on disposition results in the Executive’s being
deemed to be in receipt of earned income under the provisions of the Code, the
Company shall be entitled to immediate payment from the Executive of the amount
of any tax required to be withheld by the Company.

    

    Upon execution of this Agreement, the
Executive may file an election under Section 83 of the Code in substantially the
form attached as Exhibit
B.  The Executive acknowledges that if he does not file such an
election, as the Granted Shares are released from the Lapsing Repurchase Right
in accordance with Section 2.1, the Executive will have income for tax purposes
equal to the fair market value of the Granted Shares at such date, less the
price paid for the Granted Shares by the Executive.  The Executive has
been given the opportunity to obtain the advice of his tax advisors with respect
to the tax consequences of the purchase of the Granted Shares and the provisions
of this Agreement.

    

    
      
         

      

      
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    7.           Equitable
Relief.  The Executive specifically acknowledges and agrees
that in the event of a breach or threatened breach of the provisions of this
Agreement, including the attempted transfer of the Granted Shares by the
Executive in violation of this Agreement, monetary damages may not be adequate
to compensate the Company, and, therefore, in the event of such a breach or
threatened breach, in addition to any right to damages, the Company shall be
entitled to equitable relief in any court having competent
jurisdiction.  Nothing herein shall be construed as prohibiting the
Company from pursuing any other remedies available to it for any such breach or
threatened breach.

    

    8.           No Obligation to Maintain
Relationship.  The Company is not obligated to continue the
Executive as an employee, director or consultant of the Company or an
Affiliate.  The Executive acknowledges:  (i) that the grant
of the Shares is a one-time benefit which does not create any contractual or
other right to receive future grants of shares, or benefits in lieu of shares;
(ii) that all determinations with respect to any such future grants, including,
but not limited to, the times when shares shall be granted, the number of shares
to be granted, the purchase price, and the time or times when each share shall
be free from a lapsing repurchase right, will be at the sole discretion of the
Company; (iii) that the value of the Shares is an extraordinary item of
compensation which is outside the scope of the Executive’s Offer Letter; and
(iv) that the Shares are not part of normal or expected compensation for
purposes of calculating any severance, resignation, redundancy, end of service
payments, bonuses, long-service awards, pension or retirement benefits or
similar payments.

    

    9.           Notices.  Any
notices required or permitted by the terms of this Agreement shall be given by
recognized courier service, facsimile, registered or certified mail, return
receipt requested, addressed as follows:

    

    If to the Company:

    

    NEXX
Systems, Inc.

    900
Middlesex Turnpike Building 6

    Billerica,
MA 01821

    Attention:  Chief
Financial Officer

    

    With a copy to:

    

    Mintz
Levin

    One
Financial Center

    Boston,
Massachusetts 02111

    Attention:  Neil
Aronson, Esquire

    

    If to the Executive:

    

    Dr.
Thomas Walsh

    15536
Village Drive

    Lake
Oswego, Oregon 97034

    

    
      
         

      

      
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    or to
such other address or addresses of which notice in the same manner has
previously been given.  Any such notice shall be deemed to have been
given on the earliest of receipt, one business day following delivery by the
sender to a recognized courier service, or three business days following mailing
by registered or certified mail.

    

    10.           Benefit of
Agreement.  Subject to the provisions hereof, this Agreement
shall be for the benefit of and shall be binding upon the heirs, executors,
administrators, successors and assigns of the parties hereto.

    

    11.           Governing
Law.  This Agreement shall be construed and enforced in
accordance with the laws of the State of Delaware, without giving effect to the
conflict of law principles thereof.  For the purpose of litigating any
dispute that arises under this Agreement, whether at law or in equity, the
parties hereby consent to exclusive jurisdiction in the Commonwealth of
Massachusetts and agree that such litigation shall be conducted in the courts of
Suffolk County, the Commonwealth of Massachusetts or the federal courts of the
United States for the District of the Commonwealth of
Massachusetts.

    

    12.           Severability.  If
any provision of this Agreement is held to be invalid or unenforceable by a
court of competent jurisdiction, then such provision or provisions shall be
modified to the extent necessary to make such provision valid and enforceable,
and to the extent that this is impossible, then such provision shall be deemed
to be excised from this Agreement, and the validity, legality and enforceability
of the rest of this Agreement shall not be affected thereby.

    

    13.           Entire
Agreement.  This Agreement, together with the Right of
First Refusal and Co-Sale Agreement, constitutes the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior oral or written agreements and understandings
relating to the subject matter hereof.  No statement, representation,
warranty, covenant or agreement not expressly set forth in this Agreement shall
affect or be used to interpret, change or restrict the express terms and
provisions of this Agreement.

    

    14.           Modifications and
Amendments; Waivers and Consents.  The terms and provisions of
this Agreement may be waived, or consent for the departure therefrom granted,
only by written document executed by the party entitled to the benefits of such
terms or provisions.  No such waiver or consent shall be deemed to be
or shall constitute a waiver or consent with respect to any other terms or
provisions of this Agreement, whether or not similar.  Each such
waiver or consent shall be effective only in the specific instance and for the
purpose for which it was given, and shall not constitute a continuing waiver or
consent.

    

    
      
         

      

      
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    15.           Consent of Spouse/Domestic
Partner.  If the Executive has a spouse or a domestic partner
as of the date of this Agreement, the Executive’s spouse or domestic partner
shall execute a Consent of Spouse/Domestic Partner in the form of Exhibit C hereto,
effective as of the date hereof.  Such consent shall not be deemed to
confer or convey to the spouse or domestic partner any rights in the Granted
Shares that do not otherwise exist by operation of law or the agreement of the
parties.  If the Executive subsequent to the date hereof, marries,
remarries or applies to the Company for domestic partner benefits, the Executive
shall, not later than 60 days thereafter, obtain his new spouse/domestic
partner’s acknowledgement of and consent to the existence and binding effect of
all restrictions contained in this Agreement by having such spouse/domestic
partner execute and deliver a Consent of Spouse/Domestic Partner in the form of
Exhibit C.

    

    16.           Counterparts.  This
Agreement may be executed in one or more counterparts, and by different parties
hereto on separate counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

    

    17.           Data
Privacy.  By entering into this Agreement, the
Executive:  (i) authorizes the Company and each Affiliate, and any
agent of the Company, to disclose to the Company or any of its Affiliates such
information and data as the Company or any such Affiliate shall request in order
to facilitate the grant of Shares; (ii) waives any data privacy rights he may
have with respect to such information; and (iii) authorizes the Company and each
Affiliate to store and transmit such information in electronic
form.

    

     

     

    
 

    [THE NEXT
PAGE IS THE SIGNATURE PAGE]

    

    
      
         

      

      
        B-10

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

     

     

    
      
        	 	NEXX
      SYSTEMS, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Stanley
      Piekos	 
	 	 	Name: 
      Stanley Piekos	 
	 	 	Title:   
      CFO	 
	 	 	 	 

      

    
      
        	 	EXECUTIVE:	 
	 	 	 
	 	/s/
      Thomas Walsh	 
	 	Thomas
      Walsh	 

      

    

     

     

     

     

    
 

    
      
         

      

      
        B-11

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    

    OFFER
LETTER DATED SEPTEMBER 13, 2008

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    Election
to Include Gross Income in Year

    of
Transfer Pursuant to Section 83(b)

    of
the Internal Revenue Code of 1986, as amended

    

    In accordance with Section 83(b) of the
Internal Revenue Code of 1986, as amended (the “Code”), the undersigned hereby
elects to include in his gross income as compensation for services the excess,
if any, of the fair market value of the property (described below) at the time
of transfer over the amount paid for such property.

    

    The
following sets for the information required in accordance with the Code and the
regulations promulgated hereunder:

     

    
      	
              1.

            	
              The
      name, address and social security number of the undersigned
      are:

            

    

    

    
      	
               
      

            	
              Name:
      Thomas Walsh

            

    

    
      	
               
      

            	
              Address:

            

    
      
        	
                 
      

              	
                Social
      Security No.:

              

      

      
        	
                 
      

              	
              

      

       

    

    
      	
              2.

            	
              The
      description of the property with respect to which the election is being
      made is as follows:

            

    

    

    
      	
               
      

            	
              4,490.920
      shares (the “Shares”) of Common Stock, $0.01 par value per share, of NEXX
      Systems, Inc., a Delaware corporation (the
  “Company”).

            

    

    

    
      	
              3.

            	
              This
      election is made for the calendar year 2009, with respect to the transfer
      of the property to the Taxpayer on June 23,
  2009.

            

    

    

    
      	
              4.

            	
              Description
      of restrictions:  The property is subject to the following
      restrictions:

            

    

    

    
      	
               
      

            	
              In
      the event taxpayer’s employment with the Company or an Affiliate is
      terminated, the Company may repurchase all or any portion of the Shares
      determined as set forth below at the acquisition price paid by the
      taxpayer:

            

    

    

    
      	
               
      

            	
              A.

            	
              If
      the termination takes place prior to October 6, 2009, the Purchase Option
      will apply to all of the Shares.

            

    

    

    
      	
               
      

            	
              B.

            	
              If
      the termination takes place on or after October 6, 2009, the number of
      Shares to which the Purchase Option applies shall be all Shares less
      93,561 Shares for each full month period elapsed after October 6, 2009 if
      the taxpayer is employed by the Company or an
  Affiliate.

            

    

    

    

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    
      	
              5.

            	
              The
      fair market value at time of transfer (determined without regard to any
      restrictions other than restrictions which by their terms will never
      lapse) of the property with respect to which this election is being made
      was not more than $0.01 per Share.

            

    

    

    
      	
              6.

            	
              The
      amount paid by taxpayer for said property was $0.01 per
    Share.

            

    

    

    
      	
              7.

            	
              A
      copy of this statement has been furnished to the
  Company.

            

    

    

    

    Signed
this 23 day of June, 2009.

    

    

    /s/ Thomas
Walsh                                            
     

    Print Name: Thomas Walsh

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    EXHIBIT
C

    

    CONSENT OF SPOUSE/DOMESTIC
PARTNER

    

    I,
Mariann M. Walsh, spouse or domestic partner of Thomas Walsh acknowledge that I
have read the RESTRICTED STOCK AGREEMENT dated as of March, 2009 (the
“Agreement”) to which this Consent is attached as Exhibit A and that I know its
contents.  Capitalized terms used and not defined herein shall have
the meanings assigned to such terms in the Agreement.  I am aware that
by its provisions the Granted Shares granted to my spouse/domestic partner
pursuant to the Agreement are subject to a Lapsing Repurchase Right in favor of
NEXX Systems, Inc. (the “Company”) and that, accordingly, the Company has the
right to repurchase up to all of the Granted Shares of which I may become
possessed as a result of a gift from my spouse/domestic partner or a court
decree and/or any property settlement in any domestic litigation.

    

    I hereby
agree that my interest, if any, in the Granted Shares subject to the Agreement
shall be irrevocably bound by the Agreement and further understand and agree
that any community property interest I may have in the Granted Shares shall be
similarly bound by the Agreement.

    

    I agree
to the Lapsing Repurchase Right described in the Agreement and I hereby consent
to the repurchase of the Granted Shares by the Company and the sale of the
Granted Shares by my spouse/domestic partner or my spouse/domestic partner’s
legal representative in accordance with the provisions of the
Agreement.  Further, as part of the consideration for the Agreement, I
agree that at my death, if I have not disposed of any interest of mine in the
Granted Shares by an outright bequest of the Granted Shares to my spouse or
domestic partner, then the Company shall have the same rights against my legal
representative to exercise its rights of repurchase with respect to any interest
of mine in the Granted Shares as it would have had pursuant to the Agreement if
I had acquired the Granted Shares pursuant to a court decree in domestic
litigation.

    

    I
AM AWARE THAT THE LEGAL, FINANCIAL AND RELATED MATTERS CONTAINED IN THE
AGREEMENT ARE COMPLEX AND THAT I AM FREE TO SEEK INDEPENDENT PROFESSIONAL
GUIDANCE OR COUNSEL WITH RESPECT TO THIS CONSENT.  I HAVE EITHER
SOUGHT SUCH GUIDANCE OR COUNSEL OR DETERMINED AFTER REVIEWING THE AGREEMENT
CAREFULLY THAT I WILL WAIVE SUCH RIGHT.

    

    Dated as
of the 23rd day
of June, 2009.

    

    

    

    /s/ Mariann M.
Walsh                                     

    Print
name: Mariann Walsh

    

    
 

     

     

    
      
         

      

      
        C-1www.eXFILE.com 888-775-4789 --- NEXX SYSTEMS, INC.  FORM S-1

     

    EXHIBIT
10.4

     

    September
13, 2008

    

    

    

    Dr. Tom
Walsh

    15536
Village Drive

    Lake
Oswego, Oregon 97034

    

    Dear
Tom:

    

    On behalf
of NEXX Systems, we are very excited to offer you the position as President and
Chief Executive Officer of NEXX Systems, Inc., a Delaware corporation
(“NEXX”).  The following sets forth the proposed terms and conditions
of your offer of employment.  We hope that you choose to join the NEXX
executive team and look forward to a mutually beneficial
relationship.

    

    
      	
              1.        

            	
              Position. Your role will be
      President and Chief Executive Officer, and you will work at our Billerica,
      Massachusetts headquarters.  You will report directly to the
      Board of Directors.  As discussed, the requirements of the
      initial position include significant travel.  We hope that you
      can commence employment as soon as possible and in any event no later than
      October 1, 2008.

            

    

    

    
      	
              2.        

            	
              Compensation.

            

    

     

    
      	
              a)  

            	
              Base
      Wage.  In
      this position you will earn a
      starting bi-weekly salary of $10,192.31, which is equivalent to $265,000
      on an annualized basis, subject to applicable tax
      withholding.  Your salary will be paid pursuant to the
      Company’s regular payroll policy.  Your base salary and position
      will be reviewed by the Board of Directors of the Company annually as part
      of the Company’s normal review process for
  officers.

            

    

     

    
      	
              b)  

            	
              Incentive
      Bonus.  In addition, you will be eligible for an
      incentive bonus for each fiscal year.  The bonus will be awarded
      based on criteria established by the Company’s Board of Directors with
      your input.  Your target annual bonus will be $100,000, and the
      bonus will be paid bi-annually beginning in 2009 (as defined below) and
      based on target objectives proposed by the company and approved by the
      Board.  A one-time $50,000 bonus will be earned upon your
      commencing employment with a starting date of on or before October 1,
      2008.  The bonus will be paid during the first quarter of
      2009.  In addition, the bonus for Q4-2008, pro rated as $25,000
      will be guaranteed.  Each of these bonuses will be paid in Q1-09
      to comply with Section 409A of the Internal Revenue Code.  The
      determinations of the Company’s Board of Directors with respect to your
      bonus will be final and binding.  Further, on an annual basis,
      your base salary and bonus will be subject to review by the Company’s
      Board of Directors.

            

    

     

    
      	
              3.        

            	
              Employee
      Benefits.

            

    

     

    
      	
               
      

            	
              As a NEXX employee, you
      are entitled to participate in the comprehensive benefits package as
      outlined in the Summary Benefits documents
  enclosed.

            

    

     

    
      	
              a.  

            	
              Time
      Off  You will be eligible to accrue up to 20 days of
      vacation time per calendar year, pro-rated for the remainder of this
      calendar year.  Vacation time accrues monthly, with each pay
      period.  In addition, you will be eligible to take up to 5 sick
      days per calendar year.

            

    

     

    
      	
              b.  

            	
              Group
      Plans.  The Company
      will provide you with the opportunity to participate in the standard
      benefits plans currently available to other similarly situated employees,
      subject to any eligibility requirements imposed by such
    plans.

            

    

     

    
      	
              4.        

            	
              Stock
      Option/Restricted Stock.  You will be granted the right
      to purchase a number of shares (the "Shares") of Common Stock of the
      Company in an amount equal to 5.0% of the fully diluted capitalization of
      the Company as of your Start Date.  The fully diluted
      capitalization of the Company will be determined on an as-converted basis,
      including unexercised options and unallocated shares reserved for issuance
      under

            

    

     

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                  

              	
                the
      employee stock pool.  This stock purchase right will be offered
      pursuant to the terms of a stock option or, at your option, restricted
      stock purchase agreement to be entered into between the Company and
      you.  The purchase price per share will be equal to the fair
      market value as determined by the Company’s Board of Directors on the date
      of grant.  The Shares will vest over four years, based upon your
      continued employment with the Company as follows:  25% of the
      Shares will vest on the first anniversary of the Grant Date, and 1/48th of
      the Shares will vest at the end of each one-month period thereafter,
      subject to your continued employment with the Company.  In
      addition, the Company will have a right of first refusal with respect to
      your resale of any Shares.  The price at which the Company may
      exercise its right of first refusal will be equal to the price most
      recently set by the Board of Directors as the fair market value of the
      Company's Common Stock.  The right of first refusal will
      terminate upon the closing of an initial public offering of the Company's
      Common Stock in which all outstanding shares of Preferred Stock are
      converted to Common Stock

              

      

       

    

     

    
      	
              5.        

            	
              Relocation

            

    

     

    
      	
              a.  

            	
              Net
      of payroll taxes, NEXX will pay relocation expenses up to $30,000 for
      moving of personal goods of direct expense reimbursement for relocation to
      be used within the first fifteen months of employment.  Keep in
      mind, some relocation expenses are considered taxable based on IRS rules
      and regulations.  In addition, if you chose to leave NEXX
      Systems within one year, the amount of your relocation will be paid back
      to the company.

            

    

    
      	
              b.  

            	
              Net
      of payroll taxes, NEXX will pay up to $75,000 of closing costs on the sale
      of your primary residence if sold before your first anniversary of
      employment.  NEXX will pay up to $50,000 of these costs during
      the second year of your employment and up to $25,000 during the third
      year.

            

    

    
      	
              c.  

            	
              Net
      of payroll taxes, NEXX will pay up to $15,000 of the closing costs of a
      home that you purchase within 50 miles of NEXX within the first year of
      employment.

            

    

    
      	
              d.  

            	
              Between
      your starting date and the earlier of June 30, 2009 or the time at which
      you purchase a home as provided in item c. immediately above we will pay
      up to $2,500/month of temporary living
expenses.

            

    

    

     

    
      	
              6.        

            	
              Pre-employment
      Conditions.

            

    

     

    
      	
              a.  

            	
              Confidentiality
      Agreement.  Your
      acceptance of this offer and commencement of employment with the Company
      is contingent upon the execution, and delivery to an officer of the
      Company, of the NEXX Systems Confidentiality, Non-Competition, Proprietary
      Information and Inventions Agreement., a copy of which is enclosed for
      your review and execution (the “Confidentiality
      Agreement”), prior to or on your Start
  Date.

            

    

     

    
      	
              b.  

            	
              Right
      to Work.  For
      purposes of federal immigration law, you will be required to provide to
      the Company documentary evidence of your identity and eligibility for
      employment in the United States.  Such documentation must be
      provided to us within three (3) business days of your Start Date, or our
      employment relationship with you may be terminated without liability to
      the Company.

            

    

     

    
      	
              i.  

            	
              Verification
      of Information.  This offer
      of employment is also contingent upon the successful verification of the
      information you provided to the Company during your application process,
      as well as a general background check performed by the Company to confirm
      your suitability for employment.  By accepting this offer of
      employment, you warrant that all information provided by you is true and
      correct, and you expressly release the Company from any claim or cause of
      action arising out of the Company’s verification of such information. You
      have a right to review copies of any public records obtained by the
      Company in conducting this verification process unless you check the box
      below.

            

    

     

    
      
        
        

      

      
        - 2
-

        
          

        

      

      
        
        

      

    

    
      	
              7.        

            	
              No
      Conflicting Obligations.  You
      understand and agree that by accepting this offer of employment, you
      represent to the Company that your performance will not breach any other
      agreement to which you are a party or otherwise bound and that you have
      not, and will not during the term of your employment with the Company,
      enter into any oral or written agreement in conflict with any of the
      provisions of this letter or the Company’s policies.  You are
      not to bring with you to the Company, or use or disclose to any person
      associated with the Company, any confidential or proprietary information
      belonging to any former employer or other person or entity with respect to
      which you owe an obligation of confidentiality under any agreement or
      otherwise.  Also, we expect you to abide by any obligations to
      refrain from soliciting any person employed by or otherwise associated
      with any former employer and suggest that you refrain from having any
      contact with such persons until such time as any non-solicitation
      obligation expires.

            

    

     

    
      	
              8.        

            	
              General
      Obligations.  As an
      employee, you will be expected to adhere to the Company’s standards of
      professionalism, loyalty, integrity, honesty, reliability and respect for
      all.  Please note that the Company is an equal opportunity
      employer.  The Company does not permit, and will not tolerate,
      the unlawful discrimination or harassment of any employees, consultants,
      or related third parties on the basis of sex, race, color, religion, age,
      national origin or ancestry, marital status, veteran status, mental or
      physical disability or medical condition, sexual orientation, pregnancy,
      childbirth or related medical condition, or any other status protected by
      applicable law.  Any questions regarding this EEO statement
      should be directed to Human
Resources.

            

    

     

    
      	
              9.        

            	
              Severance.

            

    

     

    
      	
              a.  

            	
              General
      Terms.  In no way
      limiting the Company’s policy of employment at-will, if your employment is
      terminated by the Company without Cause (as defined below), and other than
      as a result of your death or disability or your voluntary resignation, the
      Company will offer certain severance benefits to you.  As a
      condition to your receipt of such benefits, you are required to comply
      with your continuing obligations (including the return of any Company
      property), resign from all positions you hold with the Company, and
      execute the Company’s standard form of release agreement releasing any
      claims you may have against the
Company.

            

    

     

    
      	
              i.  

            	
              If
      your employment is terminated by the Company other than for Cause (as
      defined below) prior to the one-year anniversary of your Start Date, you
      will be entitled to the following cash and vesting severance
      benefits:  (i) the vesting of the Shares will be accelerated
      such that 50% of the Shares are vested (and released from the Company's
      repurchase option) and (ii) a severance payment will be made to you in an
      amount equal to six (6) months of your base salary, less all applicable
      deductions and withholdings, payable in accordance with the Company’s
      payroll policies.  The Company will also reimburse you for COBRA
      payments for a period of six
months.

            

    

     

    
      	
              ii.  

            	
              If
      your employment is terminated by the Company other than for Cause (as
      defined below) after the one-year anniversary of your Start Date but
      before the second anniversary of your Start Date, you will be entitled to
      the following cash and vesting severance benefits:  (i) the
      vesting of the Shares will be accelerated (and released from the Company's
      repurchase option) with respect to a pro-rata difference between 50% and
      75% the pro-rata based on the percentage of days between the two
      anniversary dates of your then unvested Shares, and (ii) a severance
      payment will be made to you in an amount equal to six (6) months of your
      base salary, less all applicable deductions and withholdings, in
      accordance with the Company’s payroll policies.  The Company
      will also reimburse you for COBRA payments for a period of six
      months.

            

    

     

    
      	
              iii.  

            	
              If
      your employment is terminated by the Company other than for Cause (as
      defined below) after the two-year anniversary of your Start Date, you will
      be entitled to the following cash and vesting severance
      benefits:  (i) 100% vesting of the Shares will be accelerated
      (and released from the Company's repurchase option) of your then unvested
      Shares, and (ii) a severance payment will be made to you in an amount
      equal to six (6) months of your base salary, less all applicable
      deductions and withholdings, in accordance with the Company’s payroll
      policies.  The Company will also reimburse you for COBRA
      payments for a period of six
months.

            

    

     

    
      
        
        

      

      
        - 3
-

        
          

        

      

      
        
        

      

    

    
      	
              iv.  

            	
              Notwithstanding
      the provisions of the immediately preceding paragraph, if, within six (6)
      months following a Change of Control (as defined below) (a) there is a
      Constructive Termination (as defined below) or (b) your employment is
      terminated other than for Cause (as defined below), you will be entitled
      to the following cash and vesting severance benefits: (i) the vesting of
      all of your then unvested Shares will be accelerated as of the date of
      termination or Constructive Termination, and (ii) a lump sum severance
      payment will be made to you in an amount equal to six (6) months of your
      base salary, less all applicable deductions and withholdings, in
      accordance with the Company’s payroll policies.  The Company
      will also reimburse you for COBRA payments for a period of six
      months.

            

    

     

    
      	
              10.        

            	
              At-Will
      Employment.  Employment with the Company is for no
      specific period of time.  Your employment with the Company will
      be on an “at will” basis, meaning that either you or the Company may
      terminate your employment at any time for any reason or no reason, without
      further obligation or liability, except as set forth in Section 8
      above.  Although your job duties, title, compensation and
      benefits, as well as the Company’s personnel policies and procedures, may
      change from time-to-time, this policy of at-will employment is the entire
      agreement as to the duration of your employment and may only be modified
      in an express written agreement signed by you and another officer of the
      Company specifically authorized by the Board of Directors to make such
      change.

            

    

     

    
      	
              11.        

            	
              Definitions.

            

    

     

    
      	
              a.  

            	
              Cause.  For
      the purposes of this letter, “Cause” shall
mean:

            

    

    
      	
              i.  

            	
              your
      repeated failure to perform one or more of your essential duties and
      responsibilities to the Company which continues after written notice from
      the Company’s Board of Directors, specifying in reasonable detail the
      tasks which must be accomplished and a timeline for their accomplishment
      to avoid termination for Cause;

            

    

    
      	
              ii.  

            	
              gross
      dereliction of your duties

            

    

    
      	
              iii.  

            	
              your
      material violation of any Company
policy;

            

    

    
      	
              iv.  

            	
              your
      commission of any act of fraud, embezzlement, dishonesty or any other
      willful misconduct or gross negligence that has caused or is reasonably
      expected to result in material injury to the
  Company;

            

    

    
      	
              v.  

            	
              your
      unauthorized use or disclosure of any proprietary information or trade
      secrets of the Company or any other party to whom you owe an obligation of
      nondisclosure as a result of your relationship with the
      Company;

            

    

    
      	
              vi.  

            	
              your
      willful breach of any of your obligations under any written agreement or
      covenant with the Company; or

            

    

    
      	
              vii.  

            	
              your
      conviction of a felony or indictment for any felony which would harm the
      reputation of the Company if you were found
  guilty.

            

    

    

    
      	
              b.  

            	
              Constructive
      Termination shall be deemed to have occurred if, following a Change
      of Control (a) there is a material diminution in your duties and
      responsibilities (other than a change of title), (b) your office is
      relocated more than fifty (50) miles from your office location at the time
      of the Change of Control, or (c) there is a reduction in your salary or
      benefits.

            

    

    

    
      	
              c.  

            	
              Change
      of Control. means the occurrence of any of the following
      events:

            

    

    

    
      	
              i.  

            	
              The
      closing of a sale of all or a majority of the assets of the Company;
      or

            

    

    
      	
              ii.  

            	
              The
      closing of a merger or consolidation of the Company with any other
      corporation,

            

    

     

    
      
        
          
          

        

        
          - 4
-

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                other
      than a merger or consolidation which would result in the voting securities
      of the Company outstanding immediately prior thereto continuing to
      represent (either by remaining outstanding or by being converted into
      voting securities of the surviving entity) at least fifty percent (50%) of
      the total voting power represented by the voting securities of the Company
      or such surviving entity outstanding immediately after such merger or
      consolidation; or

              

      

    

    
      	
              iii.  

            	
              Completion
      of a tender or exchange offer or other transaction or series of
      transactions (other than a financing transaction or financing transactions
      primarily for the purpose of raising operating capital) resulting in less
      than a majority of the outstanding voting shares of the surviving
      corporation being held, immediately after such transaction or series of
      transactions, by the holders of the voting shares of the Company
      outstanding immediately prior to such transaction or series of
      transactions.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        - 5
-

        
          

        

      

      
        
        

      

    

    We are
delighted to be able to extend you this offer and look forward to working with
you.  To indicate your acceptance of the Company’s offer, please sign
and date this letter in the space provided below and return it to Donna Tinsley,
along with a signed and dated original copy of the Confidentiality Agreement, on
or before September 20, 2008.  The Company requests that you begin
work in this new position on or before October 6, 2008.  Please
indicate the date (either on or before the aforementioned date) on which you
expect to begin work in the space provided below (the “Start
Date”).  This letter, together with the Confidentiality
Agreement, sets forth the terms of your employment with the Company and
supersedes any prior representations or agreements, whether written or
oral.  This letter will be governed by the laws of Delaware without
regard to its conflict of laws provisions.  This letter may not be
modified or amended except by a written agreement, signed by an officer of the
Company.

     

    

    

    Very
truly yours,

    

    NEXX
Systems, Inc.

    

    By:  Donna
Tinsley

    

    Title:  Human
Resources Manager

    

    ACCEPTED
AND AGREED:

    

    

    Thomas
Walsh

    

    /s/ Thomas
Walsh                   

    Signature

    

    September 14,
2008                 

    Date

     

    ___           I
hereby waive my right to receive any public records as described
above.

     

    Anticipated
Start Date: October 6,
2008

     

    Attachment
A:  Confidential Information and Invention Assignment
Agreement

     

    
      
        
        

      

      
        - 6
-

        
          

        

      

      
        
        

      

    

    Attachment
A

    

    Confidential
Information and Invention Assignment Agreement

     

    
      	
              

            	
              PROPRIETARY
      INFORMATION AND INVENTIONS AND NON-COMPETITION AGREEMENT

              Document
      F-HR-1003

              Revision
      B.1 – July 18, 2008

            

    

     

    Effective
as of the first day of my employment by the Company, the following confirms an
agreement between NEXX Systems, Inc., a Delaware corporation (the Company),
and me, the individual identified on the signature page to this
Agreement.  This Agreement is a material part of the consideration for
my employment and continued employment by the Company.  In exchange
for the foregoing, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties agree as
follows:

     

    1.           NO
CONFLICTS.  I have
not made and agree not to make any agreement, oral or written, that is in
conflict with this Agreement or my employment with the Company.  I
will not violate any agreement with or the rights of any third
party.  When acting within the scope of my employment (or otherwise on
behalf of the Company), I will not use or disclose my own or any third party's
confidential information or intellectual property (collectively, Restricted Materials), except as expressly authorized by
the Company in writing.  Further, I have not retained anything
containing any confidential information of a prior employer or other third
party, whether or not created by me.

     

    2.           INVENTIONS.

     

    a.     Definitions.  Intellectual Property
Rights means any and all
patent rights, copyright rights, mask work rights, trade secret rights, database
rights and all other intellectual and industrial property rights of any sort
throughout the world (including any application
therefor).  Invention means any idea, concept, discovery,
invention, development, technology, work of authorship, trade secret, software,
firmware, tool, process, technique, know-how, data, plan, device, apparatus,
architecture, specification, design, circuit, layout, mask work, algorithm,
program, code, documentation or other material or information, tangible or
intangible, whether or not it may be patented, copyrighted or otherwise
protected (including all versions, modifications, enhancements and derivative
works thereof).

     

    b.     Prior
Inventions Assignment. My
performance of all of the terms of this Agreement and as an employee of the
Company does not and will not breach any agreement to keep confidential
proprietary information, knowledge or data acquired by me in the confidence or
in trust prior to my employment with the Company, and I will not disclose to the
Company, or induce the Company to use, any confidential or proprietary
information or material belonging to any previous employer or
others.

     

    c.     Inventions
Assignment.  To the
fullest extent under applicable law, the Company shall own all right, title and
interest in and to all Inventions (including all Intellectual Property Rights
therein or related thereto) that are made, conceived or reduced to practice, in
whole or in part, by me during the term of my employment with the Company and
which arise out of research or other activity conducted by, for or under the
direction of the Company (whether or not conducted at the Company's facilities,
during working hours or using Company assets), or which relate to any
Proprietary Information (as defined below).  I will promptly disclose
and provide all of the foregoing Inventions (the Assigned Inventions) to the Company.  I hereby
make and agree to make all assignments to the Company necessary to accomplish
the foregoing ownership.  Assigned Inventions shall not include any
Invention (i) that I develop entirely on my own time, without use of any
Company assets and (ii) which does not relate to any Proprietary
Information.

     

    d.     Assurances.  I will further assist the Company, at
its expense, to evidence, record and perfect such assignments, and to perfect,
obtain, maintain, enforce and defend any rights specified to be so owned or
assigned.  I hereby irrevocably designate and appoint the Company as
my agent and attorney-in-fact to act for and in my behalf to execute and file
any document and to do all other lawfully permitted acts to further the purposes
of the foregoing with the same legal force and effect as if executed by
me.

     

    e.     Other
Inventions.  If I
wish to clarify that something created by me prior to my employment that relates
to the Company's actual or proposed business is not within the scope of this
Agreement, I have listed it on Appendix A.  If (i) I use or
disclose any Restricted Materials when acting within the scope of my employment
(or otherwise on behalf of the Company), or (ii) any Assigned Invention
cannot be fully made, used, reproduced or otherwise exploited without using or
violating any Restricted Materials, I hereby grant and agree to grant to the
Company a perpetual, irrevocable, worldwide, royalty-free, non-exclusive,
sublicensable right and license to exploit and exercise all such Restricted
Materials and Intellectual Property Rights therein.  I will not use or
disclose any Restricted Materials for which I am not fully authorized to grant
the foregoing license.

     

    f.     Moral
Rights.  To the
fullest extent allowed by applicable law, the terms of this Section 2 include
all rights of integrity, disclosure and withdrawal and any other rights that may
be known as or referred to as moral rights, artist's rights, or the like
(collectively, Moral
Rights).  To
the extent I retain any such Moral Rights under applicable law, I hereby ratify
and consent to any action that may be taken with respect to such Moral Rights by
or authorized by the Company and agree not to assert any Moral Rights with
respect thereto.  I will confirm any such ratification, consent or
agreement from time to time as requested by the Company.

    
      
        
        

      

      
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    3.           PROPRIETARY
INFORMATION.  I agree
that all Assigned Inventions and all other business, technical and financial
information, including the identity of and information relating to the Company's
employees, Affiliates and Business Partners (as such terms are defined below),
which I develop, learn or obtain during my employment that relate to the Company
or the business or demonstrably anticipated business of the Company, or that are
received by or for the Company in confidence, constitute Proprietary Information.  I will hold in
confidence and not disclose or, except within the scope of my employment, use
any Proprietary Information.  Proprietary Information will not include
information that I can document is or becomes readily publicly available without
restriction through no fault of mine.  Upon termination of my
employment, I will promptly return to the Company all items containing or
embodying Proprietary Information (including all copies), except that I may keep
my personal copies of (a) my compensation records, (b) materials distributed to
shareholders generally and (c) this Agreement.  I also recognize and
agree that I have no expectation of privacy with respect to the Company's
networks, telecommunications systems or information processing systems
(including, without limitation, stored computer files, electronic mail messages
and voice messages), and that my activity and any files or messages on or using
any of those systems may be monitored at any time without
notice.

     

    4.           RESTRICTED
ACTIVITIES.  For the
purposes of this Section 4, the term Company includes the Company and all other
persons or entities that control, are controlled by or are under common control
with the Company (Affiliates).

     

    a.     Definitions.  Any Capacity includes, without limitation, to
(i) be an owner, founder, shareholder, partner, member, advisor, director,
consultant, contractor, agent, employee, affiliate or co-venturer,
(ii) otherwise invest, engage or participate in, (iii) be compensated
by or (iv) prepare to be or do any of the foregoing or to assist any third
party to do so; provided, that the term Any Capacity will not
include being a holder of less than one percent (1%) of the outstanding equity
of a public company.  Business Partner means any past, present or
prospective customer, vendor, supplier, distributor or other business partner of
the Company with which I have contact during my
employment.  Cause means to recruit, employ, retain or
otherwise solicit, induce or influence (or to attempt to do
so).  Solicit means to (i) service, take
orders from or solicit the business or patronage of any Business Partner for
myself or any other person or entity other than the Company, (ii) divert,
entice or otherwise take away from the Company the business or patronage of any
Business Partner, or to attempt to do so, or (iii) to solicit, induce or
encourage any Business Partner to terminate or reduce its relationship with the
Company.

     

    b.     Acknowledgments.  I acknowledge and agree that
(i) the Company's business is highly competitive, secrecy of the
Proprietary Information is of the utmost importance to the Company and I will
learn and use Proprietary Information in performing my work for the Company and
(ii) my position will require me to establish goodwill with Business
Partners and employees on behalf of the Company and such goodwill is extremely
important to the Company's success.

     

    c.     As
an Employee.   During
my employment with the Company, I will not, directly or indirectly
(i) Cause any person to leave his or her employment with the Company (other
than terminating subordinate employees in the course of my duties for the
Company), (ii) Solicit any Business Partner or (iii) act in Any
Capacity in or with respect to any commercial activity that directly competes or
is reasonably likely to directly compete with the Company (a Competing Business).

     

    d.     After
Termination.  For the
period of 1 year immediately following termination of my employment with the
Company (for any or no reason, whether voluntary or involuntary), I will not,
without the prior written consent of the Company, directly or indirectly
(i) Cause any person to leave his or her employment with the Company,
(ii) Solicit any Business Partner or (iii)  act in Any Capacity in or
with respect to any Competing Business located within the Commonwealth of
Massachusetts, the rest of the region known as New England, the rest of the
United States, or anywhere else in the world.

     

    e.     Enforcement.  I understand that the restrictions
set forth in this Section 4 are intended to protect the Company's interest in
its Proprietary Information and established relationships and goodwill with
employees and Business Partners.   I agree that such restrictions
are reasonable and appropriate for this purpose.  If at any time any
of the provisions of this Section 4 are deemed invalid or unenforceable or are
prohibited by the laws of the state or place where they are to be performed or
enforced, by reason of being vague or unreasonable as to duration or geographic
scope or scope of activities restricted, or for any other reason, such
provisions shall be considered divisible and shall become and be immediately
amended to include only such restrictions and to such extent as shall be deemed
to be reasonable and enforceable by the court or other body having jurisdiction
over this Agreement.  The Company and I agree that the provisions of
this Section 4, as so amended, shall be valid and binding as though any invalid
or unenforceable provision had not been included.

     

    5.           EMPLOYMENT
AT WILL.  I agree
that this Agreement is not an employment contract for any particular
term.  I have the right to resign and the Company has the right to
terminate my employment at will, at any time, for any or no reason, with or
without cause.  This Agreement does not purport to set forth all of
the terms and conditions of my employment, and, as an employee of the Company, I
have obligations to the Company which are not described in this
Agreement.  However, the terms of this Agreement govern over any such
terms that are inconsistent with this Agreement, and supersede the terms of

    
      
        
        

      

      
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    any similar form that I may have
previously signed.  This Agreement can only be changed by a subsequent
written agreement signed by the President of the Company (or authorized
designee).

     

    6.           SURVIVAL.  I agree that my obligations under
Sections 2, 3 and 4 of this Agreement shall continue in effect after termination
of my employment, regardless of the reason, and whether such termination is
voluntary or involuntary, and that the Company is entitled to communicate my
obligations under this Agreement to any of my potential or future
employers.  My obligations under Sections 2, 3 and 4 also shall be
binding upon my heirs, executors, assigns and administrators, and shall inure to
the benefit of the Company, its Affiliates, successors and
assigns.  This Agreement may be freely assigned by the Company to any
third party.

     

    7.           GENERAL
PROVISIONS.  This
Agreement constitutes the entire agreement, and supersedes all prior
negotiations, understandings or agreements (oral or written) between me and the
Company about the subject matter of this Agreement.  Any dispute in
the meaning, effect or validity of this Agreement shall be resolved in
accordance with the laws of the Commonwealth of Massachusetts without regard to
the conflict of laws provisions thereof.  The failure of either party
to enforce its rights under this Agreement at any time for any period shall not
be construed as a waiver of such rights.  Unless expressly provided
otherwise, each right and remedy in this Agreement is in addition to any other
right or remedy, at law or in equity, and the exercise of one right or remedy
will not be deemed a waiver of any other right or remedy.  I further
agree that if one or more provisions of this Agreement are held to be illegal or
unenforceable under applicable law, such illegal or unenforceable portion shall
be limited or excluded from this Agreement to the minimum extent required so
that this Agreement shall otherwise remain in full force and effect and
enforceable.  I also understand that any breach or threatened breach
of this Agreement will cause irreparable harm to the Company for which damages
would not be a adequate remedy, and, therefore, the Company will be entitled to
injunctive relief with respect thereto (without the necessity of posting any
bond) in addition to any other remedies.

     

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
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    I
HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS
WHICH IT IMPOSES UPON ME WITHOUT RESERVATION.  NO PROMISES OR
REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS
AGREEMENT.  I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY, IN
DUPLICATE, WITH THE UNDERSTANDING THAT ONE COUNTERPART WILL BE RETAINED BY THE
COMPANY AND THE OTHER COUNTERPART WILL BE RETAINED BY ME.

     

     

     

    
      
        	NEXX SYSTEMS,
      INC. 	 	 	EMPLOYEE	 
	 	 	 	 	 
	 	 	 	 	 
	
                By:____________________________________

              	 	 	____________________________________	 
	
                Name:

              	 	 	
                Name:

              	 
	
                Title:

              	 	 	
                 

              	 
	 	 	 	 	 
	 	 	 	 	 
	Dated:  ______________,
      200_  	 	 	Dated:  ______________,
      200_  	 

      

    

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
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    Appendix
A

     

    PRIOR
MATTERS

     

    None.

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