Document:

Exhibit 10.1

Pharmacopeia, Inc.

2008 Incentive Compensation Plan

 

Purpose

 

This
plan is designed to provide Pharmacopeia, Inc. (Pharmacopeia) employees
with an incentive to achieve the Company’s annual corporate objectives.

 

Corporate Goals

 

Major
corporate goals for each year will be established by the Board of Directors.

 

Evaluation of Corporate Performance

 

The
Compensation Committee will evaluate corporate performance against each goal as
follows:

 

	
  Description of Performance

  	
   

  	
  Performance Rating

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Made significant progress toward achieving the
  objective

  	
   

  	
  0 to 94%

  	
   

  
	
  Achieved objective

  	
   

  	
  95% to 105%

  	
   

  
	
  Exceeded objective

  	
   

  	
  106% to 150%

  	
   

  
	
  Outstanding achievement

  	
   

  	
  151% to 200%

  	
   

  

 

Overall Corporate Rating and Bonus
Pool

 

An
overall corporate rating will be determined by multiplying each goal’s
weighting by each goal’s performance rating.

 

Determination of the Bonus Pool

 

The
Compensation Committee will determine the bonus pool.  The bonus pool will
be based upon the overall corporate rating, as determined by the Board of
Directors, multiplied by the salaries of bonus eligible employees, and
multiplied by their individual bonus targets.

 

Bonus Pool Allocation

 

The
Compensation Committee shall annually review and approve bonus awards for the
Chief Executive Officer (CEO) and his executive direct reports.  For all
other employees, the CEO will review and approve the allocations of the bonus
pool based upon the achievement of overall corporate performance and the
contribution of each group to the corporate goals.

 

 

 

 

Determination of Individual Bonuses

 

Each
employee has individual objectives for each year.  These relate directly
back to the corporate goals.  Individual
bonuses will be based on the overall corporate rating, the individual’s
achievement of each objective, performance of relevant teams and departments,
and individual bonus eligibility.  Each of these factors will impact any
individual bonus awards.  The Compensation Committee may also consider
individual discretionary bonus payments for exceptional individual or team
performance.

 

Criteria

 

Bonus
payments, if awarded, will be distributed no later than March 15 of the
subsequent year.

 

Employees
must be actively employed on the day the bonus payout is distributed in order
to receive that bonus payout.

 

New
hires are eligible to participate in the Incentive Program after completion of
90 days of employment, and bonus payments will be prorated for the year’s
length of service.

 

Employees
must have attended all mandatory training and acknowledged compliance with all
policies and required SOPs in order to receive the bonus payout.

 

Managers
must have completed performance reviews for all of their employees in order to
receive the bonus payout.

 

Bonus
eligibility will be prorated for any time during the year that an employee is
on a Performance Improvement Plan or under any formal disciplinary
action.  In addition, an employee will be ineligible to receive a bonus if
they are on a Performance Improvement Plan or under any formal disciplinary action
at the time of bonus payout.

 

Pharmacopeia
reserves the right to modify this plan at any time.

 

Adopted
by the Compensation Committee of the Board of Directors on February 6,
2008.Exhibit 10.1

 

Confidential
treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidentiality request.
Omissions are designated as “***”. A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.

 

 

ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered
into this 5th day of December, 2007 between SEMITOOL, INC., a Montana
corporation with a principal business address at 655 West Reserve Drive,
Kalispell, Montana (hereinafter referred to as “Semitool”), and AVIZA TECHNOLOGY, INC., a Delaware corporation with
a principal business address at 440 Kings Valley Road, Scotts Valley,
California (hereinafter referred to as “Aviza”) (each may be
individually referred to as a “Party” and collectively as the “Parties”).

 

RECITALS

 

WHEREAS, Semitool is engaged in the design, manufacture,
marketing, and distribution of thermal products for the semiconductor industry;
and

 

WHEREAS, upon the terms and subject to the conditions set
forth in this Agreement, Semitool wishes to sell and Aviza desires to purchase
certain of the Thermal Assets (as such term is defined below), and license
certain associated intellectual property, as described herein, for the purpose
of designing, commercializing, manufacturing, operating and marketing ***
products for semiconductor device manufacturing (the “Thermal Products’).

 

NOW, THEREFORE, in consideration of the payments herein
provided for and the covenants, conditions, representations and warranties
herein contained, the Parties hereto agree as follows:

 

ARTICLE
1.

 

PURCHASE
AND SALE OF THE THERMAL ASSETS

 

1.1.        The
Transferred Assets.

 

 On the terms and subject to the conditions of
this Agreement, and for the consideration set forth in Section 1.5,
Semitool shall, at the Closing, sell, transfer and convey to Aviza, free and
clear of all liens, all of Semitool’s respective rights, titles and interests
in the following assets:

 

1.1.1.   Semitool’s right, title and interest in and
to the physical assets of the prototype *** located at its main facility in
Kalispell, Montana and more fully described in Schedule 3.5 (c) attached
hereto (the “***”), associated spare parts and
hardware and all manufacturing documentation related thereto;

 

1.1.2.   Semitool’s entire right, title and interest
in and to its software, know-how, trade secrets and copyrights that are used,
held for use, or useful solely in connection with the design, development,
modification, manufacture, operation, support, marketing 

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

 

and
sale through multiple tiers of distribution of the *** and the Thermal Products
developed from that prototype; and

 

1.1.3.   Semitool’s entire right, title and interest
in and to the patents and patent applications set forth in Schedule 1.1.3,
attached hereto (the “Assigned Patents”).   Aviza
grants back to Semitool a non-exclusive, non-transferable, worldwide,
irrevocable, royalty-free, paid-in-full license to make, have made, use, have
used, import, offer to sell and sell the subject matter of the Assigned Patents
solely as they may be applicable to the *** equipment manufactured by Semitool
(the “Semitool Field of Use”).  Aviza
agrees that it will not use the Thermal Assets to make, have made, use, have
used, import, offer to sell or sell products or services in the Semitool Field
of Use that are the subject matter of the Assigned Patents, nor will Aviza
grant licenses in the Semitool Field of Use under the Assigned Patents to any
third party.

 

1.2.        The
Licensed Assets.

 

1.2.1.   Subject to
the Non-Disclosure Agreement attached as Appendix A hereto (the “NDA”), Semitool grants to
Aviza a non-exclusive, non-transferable, worldwide, royalty-free license to
reproduce, modify, make derivative works of, use and distribute through
multiple tiers of distribution the software source code delivered by Semitool
for the *** (the “Licensed Software”)  to
develop, make, have made, use, have used, import, offer to sell and sell the
Thermal Products and any improvements, modifications, follow-on products or
similar products (the “Permitted Uses”).

 

1.2.2.   Semitool grants to Aviza a non-exclusive,
transferable (including the right to sublicense), worldwide, irrevocable,
royalty-free license to use such Semitool patents and patent applications, set
forth in Schedule 1.2.2., as applicable to the *** (the “Licensed Patents”) for the Permitted
Uses.

 

1.2.3.   Aviza agrees not to intentionally use,
without the prior written consent of Semitool, any knowledge gained through the
use of the Licensed Software or Licensed Patents for any purpose other than the
Permitted Uses.  In the event of a
material, uncured breach of this Section 1.2 or the NDA, the license
granted pursuant to Section 1.2.1 shall terminate.

 

1.2.4.   The items described in Section 1.2.1
and 1.2.2, above, collectively shall be referred to as the “Licensed Assets.”

 

1.2.5.   The items described in Section 1.1,
above, and this Section 1.2, collectively shall be referred to as the
“Thermal
Assets.”

 

1.3.        Assumption
of Liabilities.

 

Aviza
is not assuming any liabilities in connection with the assignment, transfer, or
license of the Thermal Assets, any such liability, an “Excluded Liability.”  For the avoidance of doubt, an Excluded
Liability does not include (1) any fact or circumstance related to the
Thermal Assets that did not exist prior to the Closing and (2) and defects
or 

 

*** Certain information has been omitted and filed
separately with the Securities and Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.

2

 

latent
defects related to the prototype *** (it being understood that the prototype
*** is not intended for sale in its current state of development).

 

1.4.        Commercialization Support.

 

Semitool undertakes to provide the engineering, software
and manufacturing support specified in Appendix B hereto in order to
support the commercialization of the ***.

 

1.5.        Consideration.

 

1.5.1.  The
consideration to be
paid
by Aviza (the “Purchase Price”) for the sale by Semitool of the
Thermal Assets shall be one million (1,000,000) shares of the common stock of
Aviza, $0.0001 par value (the “Buyer’s Shares”), delivered at Closing, plus the
payments described in Section 1.5.2. 
The Purchase Price is non-refundable. 
Aviza shall be solely responsible for all sales and
transfer taxes, if any, required by any governmental authority in any relevant
jurisdiction which arise out of or result from the sale hereunder of the
Thermal Assets.

 

1.5.2.   In addition
to the Buyer’s Shares, Aviza shall also pay Semitool an amount equal to *** of
the net revenues generated from the sale of the Thermal Products systems
(exclusive of spare parts and service) commercialized with the support provided
by Section 1.4 (the “Royalty Products”) up to a maximum amount of ***.  The royalty payment period shall be
calculated based on the sales of Royalty Products that are recorded for
revenue, on a quarterly basis, and will be due within fifteen (15) days
following the end of each calendar quarter. 
For purposes hereof, “net revenues” equal gross revenues actually
received by Aviza exclusive of any taxes, duties, fees or shipping or insurance
costs.

 

1.6.         Non-competition Undertaking.

 

Semitool and its affiliates shall not engage in any ***
business that competes with (i) the Royalty Products or (ii) any
other *** product currently commercialized by Aviza.  For the avoidance of doubt, it is understood
that the following technologies are excluded from this non-competition
undertaking: (i) any *** thermal technology that is used in conjunction
with *** modules in an integrated system and (ii) *** technologies.  Notwithstanding the foregoing, the
obligations set forth in this Section 1.6 shall terminate on the fifth
anniversary hereof unless the amounts paid to Semitool pursuant to Section 1.5
hereof aggregate at least ***, taking into account the aggregate royalty
payments made pursuant to Section 1.5.2 and the value of the Buyer’s
Shares on such date (as determined by the closing price of said Buyer’s Shares
on that date), in which case the obligations shall extend for an additional ten
(10) years.

 

1.7.         Ownership.

 

1.7.1.   As between the Parties, Aviza shall be the
sole owner of all Intellectual Property Rights and Technology in and to any
improvements or derivative works it creates from the Thermal Assets (“Improvement”).

 

*** Certain information has been omitted and filed
separately with the Securities and Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.

 

3

 

1.7.2.   Aviza hereby agrees to grant to Semitool a
non-exclusive, non-transferable (except as set forth in Section 7.8),
irrevocable, royalty-free, worldwide, paid-in-full license under any patent
disclosing an Improvement with a filing date prior to the second anniversary of
the effective date of this Agreement, to make, have made, use, have used,
import, offer to sell and sell the subject matter of the Improvement solely as
they may be applicable to the *** equipment manufactured by Semitool.

 

ARTICLE
2.

 

CLOSING

 

2.1.        Closing.

 

The purchase and sale (the “Closing”) provided for in
this Agreement shall take place at such time and place as Semitool and Aviza
shall agree upon, but no later than December 15, 2007 (the “Closing Date”).

 

2.2.        Closing Obligations of Semitool.

 

At the Closing, Semitool shall deliver or cause to be
delivered to Aviza:

 

(a)           the
physical assets included in the Thermal Assets and, to the extent Semitool
cannot physically transfer said physical assets at that time, Semitool shall
take all requisite steps to put Aviza in actual possession and operating
control of said physical assets as soon thereafter as reasonably practical;

 

(b)           good and
sufficient documentation reasonably requested by Aviza conveying to Aviza the
interests created hereunder in the Thermal Assets, such documentation to be in
form and substance reasonably satisfactory to counsel for Aviza; and

 

(c)           copies
of all of Semitool’s records and other data relating to the Thermal Assets.

 

2.3.        Closing
Obligations of Aviza.

 

At the Closing, Aviza shall deliver to Semitool the Buyer’s
Shares.

 

2.4.        Other
Documents; Further Assurances.

 

Semitool from time to time after the Closing at the request
of Aviza and without further consideration shall execute and deliver further
instruments and take such other action as Aviza may reasonably require to more
effectively give effect to the conveyances contemplated herein in respect of
the Thermal Assets.

 

*** Certain information has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

4

 

ARTICLE
3.

 

REPRESENTATIONS
AND WARRANTIES OF SEMITOOL

 

Semitool hereby
represents and warrants to Aviza, as of the date hereof and as of the Closing
Date, that:

 

3.1.        Authority
and Binding Effect.

 

Semitool has the full power, authority and capacity to
execute, deliver and perform its obligations under this Agreement and all of
the other agreements, documents, instruments and certificates to be executed by
Semitool and to convey all of the Thermal Assets to Aviza, free and clear of
any encumbrances, and has taken all actions necessary to secure and has secured
all approvals required in connection therewith. 
This Agreement is, and any documents or instruments to be executed and
delivered by Semitool pursuant hereto, will be legally valid and binding
obligations of Semitool enforceable against Semitool in accordance with their
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ and
contracting parties’ rights generally and except as enforceability may be
subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

 

3.2.        Ownership of Assets.

 

  Semitool is
the owner of the entire right, title and interest in the Thermal Assets, free
and clear of any encumbrances.

 

3.3.        No
Undisclosed Liabilities.

 

There are no material liabilities of any nature with
respect to the Thermal Assets (whether known or unknown, absolute, accrued,
contingent or otherwise, and whether due or to become due) not disclosed to Aviza.

 

3.4.        Legal Proceedings.

 

There is no pending lawsuit, action, claim, formal or
informal investigation, arbitration, litigation or other judicial, regulatory,
administrative or dispute resolution proceeding (a “Proceeding”) that has been
commenced by or against Semitool, which if adversely determined would have a
material adverse effect on the Thermal Assets, and no such Proceeding is
threatened or inchoate.

 

3.5.        Intellectual
Property.

 

(a)           Schedule 1.1(iii) attached
hereto contains a true and complete patent application serial number for each
jurisdiction in which the referenced application was filed and the date filed
or issued.  There are no registered
copyrights, trademarks or mask work related exclusively to the Thermal Assets.

 

***
Certain information has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested with respect
to the omitted portions.

 

5

 

(b)           Schedule
3.5(b)(i) attached hereto contains (A) a true and complete list
of all licenses and Material Contracts pursuant to which Semitool is granted
rights in any third-party Technology or Intellectual Property Rights (excluding
any Publicly Available Software) (x) embedded or incorporated into or
distributed with any of the Thermal Assets, (y) used by Semitool in the
development or support of any of the Thermal Assets, or (z) used or held
for use by Semitool for any other purpose (excluding, for purposes of this
clause (z) only, any generally available, off-the-shelf software programs
licensed by Semitool on standard terms); (B) a summary of Semitool’s
remaining payment and accounting obligations, if any, with respect to each of
such licenses or Material Contracts, excluding agreements for generally
available, off-the-shelf software programs licensed by Semitool on standard
terms.  Semitool has not provided source
code or detailed design documentation of the Thermal Assets or any material
part thereof to a third party.

 

(c)           Schedule
3.5(c) attached hereto contains a true and complete shop order of  the *** as of the date hereof.

 

(d)           The
Intellectual Property Rights and Technology owned or licensed by Semitool that
relate to the Thermal Assets constitutes all Intellectual Property Rights and
Technology used by Semitool in or, to Semitool’s knowledge necessary for, the
design, manufacture, license and sale of all of the Thermal Products , whether
currently under development or in production.

 

(e)           Semitool
(A) owns all right, title and interest in and to the Thermal IP and
Thermal Technology, free and clear of any liens; or (B) has a valid and
enforceable right or license to use all other Intellectual Property Rights and
Technology used in the conduct of Semitool’s business as such business relates
to the Thermal Products, and all such licensed Intellectual Property Rights and
rights to use Technology will not cease to be valid and enforceable rights of
Semitool by reason of the execution and delivery of, and performance of the
obligations under, this Agreement, or by any ancillary agreements executed in
connection with this Agreement, or the consummation of the transactions
contemplated hereby or thereby.

 

(f)            There
are no legal Proceedings related to the Thermal Products that are pending or,
to Semitool’s knowledge, threatened (i) alleging infringement,
misappropriation or any other violation of any Intellectual Property Rights of
any Person by Semitool or any of their respective products or services, or (ii) challenging
the scope, ownership, validity, or enforceability of the Thermal IP or of
Semitool’s rights under or to the Intellectual Property Rights and Technology
licensed to Semitool and used in or necessary for the conduct of Semitool’s
business as such business relates to the Thermal Products as presently
conducted. Without limiting the foregoing, no interference, opposition,
reexamination or other proceeding initiated by a third party is or has been
pending or, to Semitool’s knowledge, threatened, in which the scope, validity
or enforceability of any of the Thermal IP is being or has been challenged and
to Semitool’s knowledge, all Thermal IP is valid and enforceable.  To Semitool’s knowledge, Semitool’s past or
present use of the Thermal IP or Thermal Technology does not infringe upon or
misappropriate, breach or otherwise conflict with the Intellectual Property
Rights of any third party and Semitool has not received any notice alleging any

 

***
Certain information has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested with respect
to the omitted portions.

 

6

 

such infringement or
misappropriation.  Neither the Thermal IP
nor the Thermal Technology is subject to any outstanding judgment, decree,
order, writ, award, injunction or determination of an arbitrator or court or
other governmental authority (other than office actions and correspondence
regarding pending patent applications and trademark applications) restricting
the rights of Semitool with respect thereto. 
To Semitool’s knowledge, no Person has interfered with, infringed upon
or misappropriated any of Semitool’s Intellectual Property Rights as such
rights relate to the Thermal Products, or is currently doing so.

 

(g)           Semitool
has taken all actions reasonably necessary to maintain and protect the Thermal
IP, including payment of applicable maintenance fees, filing of applicable
statements of use, timely response to office actions and disclosure of any
required information, and all assignments (and licenses where required) of the
Thermal IP have been duly recorded with the appropriate governmental
authorities. Schedule 3.5(g) attached hereto includes a true and
complete list of all material actions that must be taken within 120 days of the
date hereof with respect to any of the Registered IP. Semitool has complied
with all applicable notice and marking requirements for the Registered IP.  None of the Thermal IP has been adjudged
invalid or unenforceable in whole or part and, to Semitool’s knowledge, all
Thermal IP is valid and enforceable. Semitool has taken reasonable steps
consistent with industry standard practices to safeguard and maintain the
secrecy and confidentiality of trade secrets that are material to the Thermal
Products.  Without limiting the
foregoing, (i) there has been no misappropriation of any trade secrets or
other confidential Intellectual Property Rights or Technology used in
connection with Semitool’s business as such business relates to the Thermal
Products by any Person; (ii) to Semitool’s knowledge, no employee,
independent contractor or agent of Semitool has misappropriated any trade
secrets of any other Person in the course of performance as an employee,
independent contractor or agent of Semitool’s business as such business relates
to the Thermal Products; and (iii) to Semitool’s knowledge, no employee,
independent contractor or agent of Semitool is in default or breach of any term
of any employment agreement, nondisclosure agreement, assignment of invention
agreement or similar agreement or contract relating in any way to the
protection, ownership, development, use or transfer of the Thermal IP or
Thermal Technology.  Semitool is not
obligated to provide any consideration (whether financial or otherwise) or
account to any third party with respect to any exercise of rights by Semitool,
or any successor to Semitool, in any Thermal IP, Thermal Technology or Thermal
Product.

 

(h)           Semitool
has not incorporated or otherwise used Publicly Available Software in a manner
that would require, or condition the use or distribution of any Thermal Product
on the disclosure, licensing or distribution of any source code for any portion
of such Thermal Product.

 

(i)            The
Licensed Software does not contain any Harmful Code, and Semitool has used
commercially reasonable efforts to prevent the introduction of such Harmful
Code to the Licensed Software.

 

***
Certain information has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested with respect
to the omitted portions.

 

7

 

(j)            Semitool
is not bound by, and no Thermal IP or Thermal Technology is subject to, any
agreement or arrangement containing any covenant or other provision that in any
way limits or restricts the ability of Semitool to use, exploit, assert or
enforce any Thermal IP or Thermal Technology anywhere in the world.  Semitool has not transferred ownership of, or
granted any exclusive license with respect to, any Thermal IP or Thermal
Technology to any other Person.

 

(k)           No
funding, facilities, or personnel of any governmental entity or educational
institution were used, directly or indirectly, to develop or create, in whole
or in part, any of the Thermal IP, Thermal Technology or Thermal Products.  Semitool has not made any written submission
to, and is not subject to any agreement with, any standards bodies or other
entities that would obligate Semitool to grant licenses to or otherwise impair
its control of the Thermal IP, the Thermal Technology or the Thermal Products.

 

(l)            Semitool
has not entered into any agreement requiring Semitool to grant any access or
rights to the source code or technical design or manufacturing documentation
necessary to make the Thermal Products or to place such materials or other
Technology incorporated in the Thermal Products so that a licensee might obtain
access to it upon the occurrence of any release condition. No event has
occurred, and no circumstance or condition exists, that (with or without notice
or lapse of time) will, or could reasonably be expected to, result in the
delivery, license or disclosure of any source code for any Thermal Product to
any other person who is not, as of the date of this agreement, an employee of
Semitool.

 

3.6.         Investment Matters.

 

(a)           Semitool
is an “accredited investor” within the meaning of Regulation D of the
Securities Act of 1933, as amended (the “Securities Act”) and Semitool has the knowledge, sophistication and
experience necessary to make, and is qualified to make decisions with respect
to, investments in shares presenting an investment decision like that involved
in the acquisition of the Buyer’s Shares, including investments in securities
issued by Aviza and investments in comparable companies, and has requested all
information it deemed relevant in making an informed decision to acquire the
Buyer’s Shares and has reviewed and considered all information provided in
response to such requests.

 

(b)           Semitool
is acquiring the Buyer’s Shares for its own account for investment only and
with no present intention of distributing any of the Buyer’s Shares in
violation of the Securities Act or any arrangement or understanding with any
other individual, corporation, limited liability company, partnership, joint
venture, association, trust, unincorporated organization or other entity (each
a “Person”) regarding the
distribution of such Buyer’s Shares.

 

(c)           Semitool
will not, directly or indirectly, offer, sell, pledge, transfer or otherwise
dispose of (or solicit any offers to buy, purchase or otherwise acquire or take
a pledge of) any of the Buyer’s Shares except in compliance with the 

 

***
Certain information has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested with respect
to the omitted portions.

 

8

 

Securities
Act, applicable state securities laws and the respective rules and
regulations promulgated thereunder.

 

(d)           Semitool
understands that its acquisition of the Buyer’s Shares has not been registered
under the Securities Act or registered or qualified under any state securities
law in reliance on specific exemptions therefrom, which exemptions may depend upon,
among other things, the bona fide nature of Semitool’s investment intent as
expressed herein.

 

3.7.         Material Contracts.

 

(a)           There
are no Material Contracts to which Semitool is a party or is bound related to
the Thermal Products as of the date of this Agreement.

 

(b)           “Material Contracts” shall mean:

 

(i)            license
or purchase agreements or royalty-bearing contracts primarily related to the
Thermal Products, whether Semitool is the licensor or licensee thereunder,
including with equipment or software vendors;

 

(ii)           confidentiality and non-disclosure agreements related to
the Thermal Products, whether Semitool is the beneficiary or the obligated
party thereunder;

 

(iii)          contracts involving future expenditures or liabilities
related to the Thermal Products, actual or potential, or future revenues from
the Thermal Products;

 

(iv)          contracts to procure key raw materials used with the
Thermal Products, such as wafers and chemicals; and

 

(v)           any
other contract material to the Thermal Products.

 

3.8.         Compliance with Law.

 

Semitool’s conduct of its business as such business relates
to the Thermal Products has not materially violated and is in material
compliance with applicable law.  Semitool has not received any notice to
the effect that, or otherwise been advised that, Semitool is not in compliance
with any such applicable law.

 

ARTICLE
4.

 

AVIZA’S REPRESENTATIONS AND
WARRANTIES Aviza hereby represents and warrants to Semitool, as of the date
hereof and as of the Closing Date, that:

 

4.1.        Authority
and Binding Effect.

 

 

***
Certain information has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested with respect
to the omitted portions.

 

9

 

Aviza has the full power, authority and capacity to
execute, deliver and perform this Agreement and all of the other agreements,
documents, instruments and certificates to be executed by Aviza and has taken
all actions necessary to secure and has secured all approvals required in
connection therewith.  This Agreement is,
and any documents or instruments to be executed and delivered by Aviza pursuant
hereto, will be legally valid and binding obligations of Aviza enforceable against
Aviza in accordance with their terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting creditors’ and contracting parties’ rights generally and except
as enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

 

4.2.                            Buyer’s Shares.

 

All of the Buyer’s Shares have been duly authorized and,
when issued and paid for in accordance with the terms of this Agreement, will
be validly issued, fully paid, nonassessable and free of all preemptive
rights.  Assuming the accuracy of the
representations and warranties made by Semitool in Article 3, and
compliance with the covenants of Semitool in Article 5, no registration of
the Buyer’s Shares under the Securities Act is required in connection with the
acquisition of the Buyer’s Shares by Semitool as contemplated by this
Agreement.

 

ARTICLE
5.

 

COVENANTS

 

5.1.        Registration of Buyer’s Shares.

 

5.1.1.       Registration.  Semitool will not sell, transfer or otherwise
dispose of any of the Buyer’s Shares unless (i) a registration statement
filed with the Securities and Exchange Commission (the “SEC”) pursuant to the
Securities Act is in effect with respect thereto or (ii) an exemption from
such registration is available.  Aviza
shall use its commercially reasonable efforts to file with the SEC within
thirty (30) days of the Triggering Event, but in no event more than fifteen
(15) months after the Closing, a registration statement on Form S-3 (the “Registration Statement”) (or any successor
short-form registration statement involving a similar amount of disclosure) for
a public offering of all of the Buyer’s Shares to be made on a continuous basis
pursuant to Rule 415 of the Securities Act and shall use its commercially
reasonable efforts to cause such Registration Statement to become effective as
soon as practicable but in no event later than three (3) months after
filing and remain continuously effective until the Buyer’s Shares have either
all been sold or are eligible for sale pursuant to Rule 144 promulgated
under the Securities Act.  Aviza shall
pay all expenses of registration as aforesaid, except brokerage and
underwriting commissions, any taxes of any kind, Semitool’s legal and other
advisory expenses and such other expenses as may be required by law to be paid
by Semitool.  For the purposes hereof,
the “Triggering
Event” shall mean the sale of the fifth *** (or derivative product) by
Aviza.

 

***
Certain information has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested with respect
to the omitted portions.

 

10

 

5.1.2.       Suspension.          In the event of:

 

(a)           any
request by the SEC or any other federal or state governmental authority during
the period of effectiveness of the Registration Statement for amendments or
supplements to a Registration Statement or related prospectus (the “Prospectus”) or for additional
information;

 

(b)           the
issuance by the SEC or any other federal or state governmental authority of any
stop order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings for that purpose;

 

(c)           the
receipt by Aviza of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Buyer’s Shares for
sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose; or

 

(d)           any
event or circumstance that necessitates the making of any changes in the
Registration Statement or Prospectus, or any document incorporated or deemed to
be incorporated therein by reference, so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading, and that in the case of the Prospectus, it
will not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading,

 

then
Aviza shall deliver a notice in writing to Semitool (the “Suspension
Notice”) to the effect of the foregoing and, upon receipt
of such Suspension Notice, Semitool shall refrain from selling any Buyer’s
Shares pursuant to the Registration Statement (a “Suspension”) until Semitool’s receipt of copies of a supplemented or amended
Prospectus prepared and filed by Aviza, or until it is advised in writing by
Aviza that the current Prospectus may be used. 
In the event of any Suspension, Aviza shall use its commercially
reasonable efforts, consistent with the best interests of Aviza and its
stockholders, to cause the use of the Prospectus so suspended to be resumed as
soon as reasonably practicable after the delivery of a Suspension Notice to
Semitool.

 

5.1.3.       Legends.                In addition to any legends required
by law, until the earlier to occur of (i) the termination of this Agreement
and (ii) such time as all of the Buyer’s Shares have been sold pursuant to
(A) an effective registration statement or (B) pursuant to Rule 144
promulgated under the Securities Act, the certificates representing the Buyer’s
Shares shall bear the following legends:

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH
IN AN ASSET PURCHASE AGREEMENT.  A COPY
OF SUCH ASSET PURCHASE AGREEMENT MAY BE 

 

***
Certain information has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested with respect
to the omitted portions.

 

11

 

OBTAINED FROM AVIZA
TECHNOLOGY, INC. UPON REQUEST.”

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT EXCEPT IN COMPLIANCE WITH RULE 144
PROMULGATED UNDER THE SECURITIES ACT OR IN THE EVENT THAT AVIZA TECHNOLOGY,
INC. (THE “COMPANY”) SHALL HAVE RECEIVED AN OPINION FROM COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY THAT REGISTRATION OF SUCH SECURITIES UNDER THE
SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES
LAWS IS NOT REQUIRED.”

 

5.2.         Conveyance
of Semitool Technology.

 

At the Closing, Semitool shall execute such further
documentation as may be reasonably required by Aviza (including a patent
assignment) to transfer ownership of the Intellectual Property Rights and
Technology constituting the Thermal Assets to be transferred pursuant to Section 1.1.

 

ARTICLE
6.

 

INDEMNIFICATION

 

6.1.        Indemnification
by Aviza.

 

Aviza shall indemnify and hold harmless Semitool and its
officers, directors, employees and agents (collectively, the “Semitool
Indemnified Persons”) for, and shall pay to the Semitool Indemnified Persons
the amount of, any loss, liability, claim, damage, or expense (including costs
of investigation and defense and reasonable attorneys’ fees), whether or not
involving a third-party claim (collectively, “Damages”), resulting or
arising from:

 

(a)           any
breach of any representation, warranty or covenant made by Aviza in this
Agreement;

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

12

 

(b)           to
the extent permitted by law, Aviza shall indemnify and hold harmless each of
Semitool, its directors and officers and each person, if any, who controls
Semitool within the meaning of the Securities Act against any Damages, joint or
several, to which any of them may become subject under the Securities Act or
otherwise, insofar as such Damages arise out of or are based upon any untrue or
alleged untrue statement of any material fact contained or expressly
incorporated by reference in the Registration Statement referred to in Section 5.1.1,
including any preliminary prospectus or final prospectus contained therein or
any amendment or supplement thereto, or arise out of or based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading and shall
reimburse Semitool, its directors and officers and each such controlling person
for any legal or other expenses reasonably incurred by any of them in
connection with investigating or defending any such Damages; provided, however,
that the indemnity agreement contained in this Section 6.1(b) shall
not apply to (a) amounts paid in settlement of any such Damages arising
out of or is based upon (i) an untrue statement or alleged untrue
statement or omission or alleged omission made in the Registration Statement,
the Prospectus or any amendment or supplement of the Registration Statement or
Prospectus in reliance upon and in conformity with written information
furnished to Aviza by or on behalf of Semitool expressly for use in the
Registration Statement or the Prospectus or (ii) the failure of Semitool
to comply with the covenants and agreements contained in Section 5.1.2 or (iii) any
untrue statement or omission of a material fact in any Prospectus that is
corrected in any subsequent Prospectus that was delivered to Semitool before
the pertinent sale or sales by Semitool or (b) amounts paid in settlement
of any such Damages if such settlement is effected without the consent of Aviza
(which consent shall not be unreasonably withheld).

 

6.2.        Indemnification
by Semitool.

 

Semitool shall indemnify and hold harmless Aviza and its
officers, directors, employees and agents (collectively, the “Aviza
Indemnified Persons”) for, and shall pay to the Aviza Indemnified Persons the
amount of any Damages resulting or arising from:

 

(a)           any
breach of any representation, warranty or covenant made by Semitool in this
Agreement;

 

(b)           any
Excluded Liability;

 

(c)           to
the extent permitted by law, Semitool shall indemnify and hold harmless Aviza,
its directors, its officers who have signed the Registration Statement referred
to in Section 5.1.1 and each person, if any, who controls Aviza within the
meaning of the Securities Act against any Damages, joint or several, to which
any of them may become subject under the Securities Act or otherwise, insofar
as such Damages arise out of or are based upon any untrue or alleged untrue
statement of any material fact contained or expressly incorporated by reference
in such Registration Statement, including any preliminary prospectus or final
prospectus contained therein or any amendment or supplement thereto, or arise
out of or based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

13

 

the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in such Registration
Statement, preliminary prospectus, final prospectus or amendments or
supplements thereto, in reliance upon and in conformity with written
information furnished by Semitool expressly for use therein; and Semitool shall
reimburse any legal or other expenses reasonably incurred by Aviza or any such
director, officer and controlling person in connection with investigating or
defending any such Damages; provided, however, that  (i) the indemnity agreement contained in
this Section 6.2(c) shall not apply to amounts paid in settlement of
any such loss, claim, damage, liability or action if such settlement is
effected without the consent of Semitool (which consent shall not be
unreasonably withheld) and (ii) that any indemnification by Semitool shall
be limited to the amount of the net proceeds received by Semitool from the sale
of the Buyer’s Shares pursuant to such Registration Statement.

 

ARTICLE
7.

 

MISCELLANEOUS

 

7.1.        Certain
Definitions.

 

For purposes of this Agreement, the term:

 

“Harmful Code” shall mean any program, routine, device or other feature,
such as but not limited to any “back door,” “drop dead device,” “Trojan Horse,”
“virus,” “worm,” “spyware” or “adware” (as such terms are commonly understood
in the software industry) or any other code designed or intended to have, or
capable of performing or facilitating, any of the following functions: (i) disrupting,
disabling, harming or otherwise impeding in any manner the operation of, or
providing unauthorized access to, a computer system or network or other device
on which such code is stored or installed; or (ii) compromising the
privacy or data security of a user or damaging or destroying any data or file
without the user’s consent.

 

“Intellectual Property Rights” shall mean (i) inventions,
whether or not patentable, reduced to practice or made the subject of one or
more pending patent applications, and all improvements thereto, (ii) national
and multinational statutory invention registrations, patents and patent
applications (including all renewals, reissues, divisions, substitutions,
continuations, continuations-in-part, extensions and reexaminations thereof)
registered or applied for in the United States and all other nations throughout
the world, (iii) trademarks, service marks, trade dress, logos, slogans,
domain names, trade names and corporate names (whether or not registered) in
the United States and all other nations throughout the world, including all
variations, derivations, combinations, registrations and applications for
registration or renewals of the foregoing and all goodwill associated
therewith, (iv) copyrights and rights under copyrights (whether or not
registered) and registrations and applications for registration or renewals
thereof in the United States and all other nations throughout the world,
including all derivative works, moral rights, renewals, extensions, reversions
or restorations associated with such copyrights, now or hereafter provided by
law, regardless of the medium of 

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

14

 

fixation or means of expression, (v) mask work rights
and registrations and applications for registration or renewals thereof in the
United States and all other nations throughout the world, (vi) trade
secrets and, whether or not confidential, business information (including
pricing and cost information, business and marketing plans and customer and
supplier lists), technology and know-how (including manufacturing and
production processes and techniques and research and development information), (vii) industrial
designs (whether or not registered), (viii) rights in databases and data
collections (including knowledge databases, customer lists and customer
databases) in the United States and all other nations throughout the world,
whether registered or unregistered, and any applications for registration
therefor, (ix) URL and domain name registrations, (x) all rights in
all of the foregoing provided by treaties, conventions and common law, (xi) all
rights to sue or recover and retain damages and costs and attorneys’ fees for
past, present and future infringement or misappropriation of any of the
foregoing, and (xii) other proprietary or intellectual property rights now known
or hereafter recognized in any jurisdiction.

 

“Publicly Available Software” shall mean: (A) any Software
that contains, or is derived in any manner in whole or in part from, any
Software that is distributed as free Software, open source Software (e.g. Linux)
or under similar licensing or distribution models; or (B) any Software
that may require as a condition of use, modification or distribution that such
Software or other Software incorporated into, derived from or distributed with
such Software: (i) be disclosed or distributed in source code form; (ii) be
licensed for the purpose of making derivative works; or (iii) be
redistributable at no charge.

 

“Registered IP” shall mean all United States, international and
foreign Intellectual Property Rights that have been recorded or registered in
any applicable jurisdiction or are otherwise the subject of an application,
certificate, filing, registration or other document issued, filed with or
recorded by any governmental entity, and are owned by, under obligation of
assignment to, or filed in the name of, Semitool as such rights relate to the
Thermal Products.

 

“Software” shall mean computer software, firmware, programs and
databases in any form, including Internet web sites, web content and links,
source code, executable code, tools, developers kits, utilities, graphical user
interfaces, menus, images, icons and forms, and all versions, updates,
corrections, enhancements and modifications thereof, and all related
documentation, developer notes, comments and annotations related thereto.

 

“Technology” shall mean copies and tangible embodiments of
Intellectual Property Rights, whether in electronic, written or other media,
including Software, technical documentation, specifications, designs, bills of
material, build instructions, test reports, schematics, algorithms, application
programming interfaces, user interfaces, routines, formulae, test vectors, ip
cores, mask works, tooling requirements, databases, lab notebooks, invention
disclosures, processes, prototypes, samples, studies or other know-how and
other works of authorship.

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

15

 

“Thermal IP” shall mean all Intellectual Property Rights owned,
developed or acquired by assignment by Semitool as such rights relate to the
Thermal Products.

 

“Thermal Technology” shall mean all Technology owned,
developed or acquired by assignment by Semitool as such technology relates to
the Thermal Products.

 

7.2.        Expenses.

 

Except as otherwise expressly provided in this Agreement,
each Party shall pay its own legal, accounting and other expenses incurred in
connection with this Agreement and the transactions contemplated herein.

 

7.3.        Public Announcement.

 

Unless otherwise required by applicable law, no Party shall
issue any public announcement or similar publicity with respect to this
Agreement or the transactions contemplated by this Agreement without the prior
approval of the other party.  In the
event either party intends or is required to file this agreement with the SEC,
such party shall give the other party sufficient notice to consider and effect
a confidential treatment request.

 

7.4.        Notices.

 

All notices, consents, waivers and other communications
under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt), (b) sent
by telecopier (with written confirmation of receipt), provided that a copy is
mailed by registered mail, return receipt requested or (c) when received
by the addressee, if sent by a nationally recognized overnight delivery service
(receipt requested), in each case to the appropriate addresses and telecopier
numbers set forth below (or to such other addresses and telecopier numbers as a
Party may designate by notice to the other Parties):

 

If to Semitool:

 

Semitool, Inc.

655 West Reserve Drive

Kalispell, Montana 59901

Attn:  Richard Hegger

Facsimile No.:
406.752.5522

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

16

 

If to Aviza:

Aviza Technology, Inc.

440 Kings Village Road

Scotts Valley, California
95066

Attn: Patrick C. O’Connor

Facsimile No.:
831.439.6320

 

7.5.        Further
Assurances.

 

The Parties agree (a) to furnish upon request to each
other such further information, (b) to execute and deliver to each other
such other documents, and (c) to do such other acts and things, all as the
other Party may reasonably request for the purpose of carrying out the intent
of this Agreement and the documents referred to in this Agreement.

 

7.6.        Entire Agreement and Modification.

 

This Agreement supersedes all prior agreements between the
Parties with respect to its subject matter and constitutes (along with the
documents referred to in this Agreement) a complete and exclusive statement of
the terms of the agreement between the Parties with respect to its subject
matter.  This Agreement may not be
amended except by a written agreement executed by the Party to be charged with the
amendment.

 

7.7.         Governing Law.

 

This Agreement shall be governed by the laws of the state
of California without regard to conflicts of law principles that would result
in the application of any laws other than the laws of the state of California.

 

7.8.         Assignment and Grant Back.

 

The rights granted pursuant to Section 1.2 are not
assignable by operation of contract or law (including, for the avoidance of
doubt, merger or consolidation) until the assignee or successor in interest, as
the case may be, consents in writing (in a form reasonably acceptable to
Semitool) to restrict any use of the rights granted by Semitool hereunder to
the Permitted Uses and specifically agrees not to use any such rights in
connection with any *** equipment.  In
the event that the non-competition undertaking pursuant to Section 1.6 is
terminated in accordance with the provisions thereof, Aviza shall be deemed to
have granted back to Semitool a non-exclusive, non-transferable, worldwide,
royalty-free, paid-in-full license to make, have made, use, have used, import,
offer to sell and sell the subject matter of the Assigned Patents.  Semitool may not assign this Agreement or its
rights hereunder to any third party without the prior written consent of Aviza,
such consent not to be unreasonably withheld. 
Notwithstanding the foregoing, Semitool may, without Aviza’s consent,
assign this Agreement together with the rights granted to Semitool under this
Agreement to a successor in interest to Semitool upon a merger, acquisition,
reorganization, or change of control of Semitool, or sale of all or
substantially all of the assets of Semitool.

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

17

 

IN WITNESS WHEREOF, the Parties hereto have caused
this Agreement to be duly executed as of the day and year first above written.

 

	
  AVIZA
  TECHNOLOGY, INC.:

  	
  SEMITOOL,
  INC.:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Patrick C. O’Connor

  	
   

  	
  By:

  	
      /s/
  Richard Hegger

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Patrick C.
  O’Connor

  	
   

  	
  Name:

  	
      Richard
  Hegger

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   Executive Vice President & CFO

  	
   

  	
  Title:

  	
  General
  Counsel & Secretary

  	
   

  
											

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

18

 

Appendix A

 

Mutual
Non-Disclosure Terms

 

THIS APPENDIX A governs the disclosure of all confidential and
proprietary information by and between SEMITOOL, INC,
(“Semitool”) and AVIZA TECHNOLOGY, INC. (“Aviza”) pursuant
to the Asset Purchase Agreement between the parties  (the “Agreement”) to which this non-disclosure
agreement (“NDA”) is attached.

 

1.             As used herein, “Confidential
Information” shall mean the Licensed Software and any and all technical and
non-technical information provided by either party to the other that is marked
or otherwise identified at the time of disclosure as confidential or
proprietary, whether in graphic, electronic, written or oral form, and
including but not limited to any ideas, techniques, drawings, designs,
descriptions, specifications, works of authorship, patent applications or other
filings, models, inventions, know-how, processes, algorithms, software source
documents, and formulae related to the current, future, and proposed
technologies,  products and services of
each of the parties, and also any information concerning research, experimental
work, development, engineering, financial information, purchasing, customer
lists, investors, employees, business and contractual relationships, business
forecasts, business plans, property information, personally-identifiable
information, sales and merchandising, marketing plans of or related to the
disclosing party and information the disclosing party provides regarding or
belonging to third parties.  For oral
disclosures to constitute “Confidential Information,” such disclosures must be
identified at the time as confidential or proprietary and the disclosing party
must provide a written summary of the Confidential Information within thirty
(30) days following initial disclosure.

 

2.             Each party agrees that at all times
and notwithstanding any termination or expiration of the Agreement it will hold
in strict confidence and not disclose to any third party Confidential
Information of the party disclosing the Confidential Information (the “Disclosing
Party”), except as approved in writing by the Disclosing Party.  Aviza may use the Confidential Information of
Semitool for no purpose other than the
Permitted Uses.  Semitool may only
use the Confidential Information of Aviza for purposes of fulfilling its
obligations under the Agreement. 
Notwithstanding any of the foregoing, the party to whom Confidential
Information was disclosed (the “Recipient”) shall not be in violation of this Section 2
with regard to a disclosure that was in response to a valid order by a court or
other governmental body, provided that the Recipient provides the Disclosing
Party with prior written notice of such disclosure in order to permit the
Disclosing Party to seek confidential treatment of such information.  Each party shall only permit access to
Confidential Information of the other party to those of its employees or
authorized representatives having a need to know and who have signed
confidentiality agreements or are otherwise bound by confidentiality
obligations at least as restrictive as those contained herein.

 

3.             Each party shall immediately notify
the other upon discovery of any loss or unauthorized disclosure of the
Confidential Information of the other party. Confidential Information shall not
be reproduced in any form except as required to accomplish the purposes of the
Agreement.

 

4.             Each party’s obligations under this
Agreement with respect to any portion of the other party’s Confidential
Information shall terminate when the Recipient can document that such
information: (a) was in the public domain at the time it was communicated
to the Recipient by the Disclosing Party through no breach of an obligation of
confidentiality to the Disclosing Party; (b) entered the public domain
subsequent to the time it was communicated to the Recipient by the Disclosing
Party through no fault of the Recipient or other breach of an obligation of
confidentiality to the Disclosing Party; (c) was in the Recipient’s
possession free of any obligation of confidence at the time it was communicated
to the Recipient; or (d) was developed by employees or agents of the
Recipient independently of and without reference to any information
communicated to the Recipient by the Disclosing Party.

 

5.             The Recipient shall be free to use
for any purpose the Residuals  resulting
from access to or work with the Disclosing Party’s Confidential
Information.  The term “Residuals” means
information in intangible form, which is retained in memory by persons who have
had access to the Confidential Information consistent with the terms of this
Agreement, including ideas, concepts, know-how or techniques contained
therein.  The Recipient shall not have
any obligation to limit or restrict the assignment of such persons or to pay
royalties for any work resulting from the use of Residuals.  However, the foregoing right to Residuals
shall not be deemed to grant the Recipient a license under the Disclosing Party’s
copyrights or patents.

 

6.             The parties’ obligations under this
NDA shall terminate five (5) years after the Closing Date.

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

 

APPENDIX B

 

COMMERCIALIZATION SUPPORT

 

1.  Engineering Support.  Semitool will make available during the
Development Period the liaison services of at least two engineers (currently
designated as *** in Kalispell, Montana and *** in Cambridge, England) for the
purpose of assisting in mechanical engineering aspects of Aviza’s
commercialization of the ***.  For the
purposes hereof, the “Development Period” shall mean the period necessary for
Aviza to convert the *** to a production worthy tool, or one year from the date
hereof, whichever comes first.

 

2.  Software Support.  Semitool will make available during the
Development Period the on-site commercially reasonable support of the software
department under the direction of the Director of Software for the purpose of
assisting in the software aspects of Aviza’s commercialization of the ***
(including electronic control systems). 
After the Development Period, further software support shall be limited
to forty (40) man/hours per month for an additional one year period, after
which such support will be available on an “as available” basis at the hourly
rate determined by the Director of Software to be the current hourly rate
applicable to such services.  Nothing
contained herein shall require Semitool to develop new versions or updates of
software for the ***, but rather it shall support the software development
undertaken by Aviza for the commercialization of the ***.

 

3.  Manufacturing Support.  Semitool through the Development Period will
make available parts fabrication to further support the engineering support
referred to above in Item 1 hereof, subject to available resources at Semitool’s
Birch Grove Facility.  Aviza will be
billed for any such parts fabrication at no more than a *** gross margin over
the cost of such parts.

 

4.  Facilities Support.  Semitool will make available to an Aviza
engineering team of no more than six (6) persons to be working on-site at
Semitool during the Development Period reasonable phone, network, PRO-E and
other office accessories needed to finalize engineering on the ***.

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE 1.1.3.

 

ASSIGNED PATENTS AND PATENT
APPLICATIONS

 

1.               ***;

 

2.               ***; and

 

3.               ***.

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE 1.2.2.

 

LICENSED PATENTS AND PATENT
APPLICATIONS

 

1.              ***

 

2.              ***

 

3.              ***

 

4.              ***

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE
3.5(b)(i)

 

None.

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE
3.5(c)

 

Attached.

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

 

 

 

	
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  SEMITOOL,
  INC

  555 WEST RESERVE DRIVE

  KALISPELL MT 59901

  	
   

  	
   

  	
   

  	
  SEMITOOL,
  INC.

  555 WEST RESERVE DRIVE

  KALISPELL MT 59901

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  1

  	
   

  	
  700T0079-01

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  06/30/06

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  **REVISION
  B**

  *Corrected robot

  Effective Date:

  	
   

  	
  4/21/06

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Model
  No:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Quote
  No:

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Serial
  No:

  	
   

  	
  T239043

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Specs:

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Reference:

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CONFIGURATION:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Process:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Substrate:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Voltage:

  	
   

  	
  208V,
  3 phase, 4 wire

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SEMI
  F47:

  	
   

  	
  No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CE
  Comp:

  	
   

  	
  No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  S2
  Comp:

  	
   

  	
  No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  No
  Chmbrs:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bridge:

  	
   

  	
  No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  First
  in FAB:

  	
   

  	
  No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AUTOMATION:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Type:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Robot:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Controller:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EndEffctr:

  	
   

  	
  Edge
  Grip

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PreAlgnr:

  	
   

  	
  No

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Carrier
  ID:

  	
   

  	
  tbd

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tag
  Rdr:

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CABINET:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Style:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Material:

  	
   

  	
  Stainless
  Steel

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Exhaust:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Facilities:

  	
   

  	
  Bottom

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Fire
  Supp:

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ULPA
  fltrs:

  	
   

  	
  Std

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PROCESS
  MODULE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  	
   

  	
   

  

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

 

	
  S/OT239043,

  	
   

  	
  **Revision
  B**

  	
   

  	
  

  

 

	
  Line

  	
   

  	
  Qty/

  Date

  	
   

  	
  Item

  	
   

  	
  Description/

  Notes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chamber:

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  DELIVERY
  SYSTEMS:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -None

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  DRAINS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -None

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OPTIONS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -None

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SPECIALS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -Deck
  mounted lower than standard***

  -*** located on left side of tool

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CUSTOMER
  SOURCE INSPECTION:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -No

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ENGINEERING
  REQUIRED:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -Everything

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MANUALS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  -Standard

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.

 

 

SCHEDULE
3.5(g)

 

None.

 

*** Certain information has been omitted and
filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]