Document:

Exhibit 10.3

 

AMENDMENT TO

SECOND AMENDED AND RESTATED
STOCKHOLDER AGREEMENT

 

This
Amendment, dated as of April 24, 2006 (this “Amendment”), to the Second Amended and Restated Stockholder
Agreement, dated as of October 18, 2005 (the “Agreement”), is entered into by and among Aviza Technology, Inc.
(formerly, New Athletics, Inc.), a Delaware corporation (“Parent”), Trikon Technologies, Inc., a Delaware
corporation (“Trikon”), and
VantagePoint Venture Partners IV (Q), L.P., VantagePoint Venture Partners IV, L.P.
and VantagePoint Venture Partners IV Principals Fund, L.P. (collectively, “VPVP”).

 

RECITALS

 

WHEREAS,
Parent, Trikon and VPVP are parties to the Agreement and wish to amend the
Agreement in accordance with the terms of this Amendment.

 

WHEREAS,
pursuant to Section 7.2 of the Agreement, the Agreement may be
amended by a written instrument signed by the parties hereto and approval by a
majority of the Trikon Designees (as such term is defined in the Agreement),
which approval has been granted by a majority of the Trikon Designees at a
meeting of the board of directors of Parent duly held on April 20, 2006.

 

AGREEMENT

 

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

 

1.                                      Defined
Terms. Capitalized terms used but not defined herein shall have the
meanings assigned to such terms in the Agreement.

 

2.                                      Amendment
to Section 1 of the Agreement.

 

(a)                                 The following defined
term is hereby added:

 

“Conversion Shares” shall mean that aggregate number of
shares of Common Stock issuable upon conversion of Series B Preferred
Stock and Series B-1 Preferred Stock of Aviza, Inc. (formerly, Aviza
Technology, Inc.) held by VPVP.

 

(b)                                 The defined term “Merger Share Amount” is hereby deleted in its entirety.

 

(c)                                  The defined term “Securities” is hereby deleted in its entirety and replaced
with the following:

 

“Securities” shall mean (i) the Warrant Shares and (ii) except
with respect to Section 6.2, the Merger Shares and Conversion Shares
registrable pursuant to Section 6.1 of this Agreement.

 

 

2.                                      Amendment
to Section 6 of the Agreement. Section 6 of the Agreement is
hereby deleted in its entirety and replaced with the following:

 

Section 6.                                           Registration
Procedures and Expenses.

 

6.1                               Within (i) thirty (30) days
after any issuance of Warrant Shares (or any series of Warrant Share
issuances that take place within the thirty- (30)-day period prior to the
filing of a Registration Statement (as such term is defined below)), with an
aggregate value of at least Five Hundred Thousand Dollars ($500,000) (in each
case, a “Measure Date”) or (ii) as soon as
practicable, but in any event within thirty (30) days after Parent shall have received
a written request from VPVP (any such request, a “Share Demand”),
which may be given at any time after the effective time of the Merger and
before the Registration Termination Date (as such term is defined in clause (c) below
of this Section 6.1) (any such date, a “Share Demand
Date”), to effect any registration with respect to Merger Shares or
Conversion Shares up to that number of Merger Shares or Conversion Shares set
forth in a Share Demand; provided, however, that (a) if such Share Demand
Date is prior to the earliest to occur of (i) January 1, 2007 and (ii) the
date on which affiliates of VPVP have distributed an aggregate number of shares
of Common Stock to the limited partners of such affiliates of VPVP equal to or
greater than ten percent (10%) of the number of shares of Common Stock issued
and outstanding as of April 24, 2006 after giving effect to the issuance
of the Conversion Shares (as adjusted for stock splits, combinations,
recapitalizations and the like), the number of Merger Shares or Conversion
Shares subject to such Share Demand shall not exceed the greater of (x) one
percent (1%) of Parent’s Common Stock outstanding as shown by the
then-most-recent report or statement by Parent or (y) the average weekly trading
volume for the four (4) weeks immediately preceding such Share Demand
Date; and (b) Parent shall not be obligated to effect more than one (1) such
registration in any three- (3)-month period nor more than a total of four (4) such
registrations, Parent shall:

 

(a)                                 subject to receipt of necessary
information from VPVP, use its reasonable best efforts to prepare and file with
the SEC a registration statement (the “Registration Statement”)
on Form S-3 (or Form S-1 if Form S-3 is not then available for
use by Parent) to enable the resale of the Registrable Shares by VPVP on a
delayed or continuous basis under Rule 415 of the Act;

 

(b)                                 use its reasonable best efforts,
subject to receipt of necessary information from VPVP, to cause the
Registration Statement to become effective, as applicable, within ninety (90)
days of the Measure Date or (ii) as soon as practicable after the Share
Demand Date; provided, however, that the Registration Statement shall not be
declared effective until at least the ninetieth (90th) day after the
Closing Date;

 

(c)                                  use its reasonable best efforts to
prepare and file with the SEC such amendments and supplements to the
Registration Statement and the Prospectus (as such term is defined in Section 6.4(a) below)
used in connection therewith and take all such other actions as may be
necessary to keep the Registration Statement current and effective, (i) in
the case of Warrant Shares for a period (the “Registration
Period”) ending not later than the earlier of (A) the second (2nd)
anniversary of the applicable Measure Date); (B) the date on which all
Warrant Shares then held by VPVP may be sold or transferred in compliance
with Rule 144 under the Act

 

 

(or any
other similar provisions then in force) without any volume or manner of sale
restrictions thereunder and (C) such time as all Warrant Shares held by
VPVP have been sold (1) pursuant to a registration statement; (2) to
or through a broker or dealer or underwriter in a public distribution or a
public securities transaction or (3) in a transaction exempt from the
registration and prospectus delivery requirements of Section 4(1) of
the Act so that all transfer restrictions and restrictive legends with respect
thereto, if any, are removed upon the consummation of such sale or (ii) in
the case of Merger Shares or Conversion Shares for a period (the “Share Registration Period”) ending on the earlier of (i) the
Registration Termination Date and (ii) the date on which VPVP has
completed the distribution related thereto. For purposes of this Agreement, the
“Registration Termination Date” shall be
the later of (x) the two- (2)-year anniversary of, with respect to the Merger
Shares, the Closing Date, and with respect to the Conversion Shares, April 24,
2006, and (y) the date that all of the Merger Shares or Conversion Shares, as
applicable, become eligible for sale pursuant to Rule 144 during any one (1) ninety-
(90)-day period;

 

(d)                                 promptly furnish to VPVP with
respect to the Registrable Shares registered under the Registration Statement
such reasonable number of copies of the Registration Statement and Prospectus,
including any preliminary Prospectus and any supplements to or amendments of
the Prospectus or Registration Statement, in order to facilitate the public
sale or other disposition of all or any of such Registrable Shares by VPVP;

 

(e)                                  promptly take such action as may be
necessary to qualify, or obtain, an exemption for the Registrable Shares under
such of the state securities laws of United States jurisdictions as shall be
necessary to qualify, or obtain an exemption for, the sale of the Registrable
Shares in states specified in writing by VPVP; provided,
however, that Parent shall not be required to qualify to do business
or consent to service of process in any jurisdiction in which it is not now so
qualified or has not so consented;

 

(f)                                   bear all expenses in connection with
the procedures in paragraphs (a) through (e) of this Section 6.1
and the registration of the Registrable Shares pursuant to the Registration
Statement, regardless of whether a Registration Statement becomes effective,
including, without limitation:  (i) all
registration and filing fees and expenses (including filings made with the
NASD); (ii) fees and expenses of compliance with federal securities and
state securities or “blue sky” laws; (iii) expenses of printing (including
printing certificates for the Registrable Shares and Prospectuses); (iv) all
application and filing fees in connection with listing the Registrable Shares
on NASDAQ and (v) all fees and disbursements of counsel of Parent and the
independent certified public accountants of Parent; provided,
however, that VPVP shall be responsible for paying the underwriting
commissions or brokerage fees, and taxes of any kind (including, without
limitation, transfer taxes) applicable to any disposition, sale or transfer of
VPVP’s Registrable Shares. Parent shall, in any event, bear its internal
expenses (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties);

 

(g)                                  advise VPVP, within two (2) Business
Days by e-mail, fax or other type of communication, and, if requested by VPVP,
confirm such advice in writing:  (i) after
it shall receive notice or obtain knowledge of the issuance of any stop order
by the SEC delaying or suspending the effectiveness of the Registration
Statement or of the initiation or threat of any

 

 

proceeding
for that purpose, or any other order issued by any state securities commission
or other regulatory authority suspending the qualification or exemption from
qualification of such Registrable Shares under state securities or “blue sky”
laws; and it shall promptly use its reasonable best efforts to prevent the
issuance of any stop order or other order or to obtain its withdrawal at the
earliest possible moment if such stop order or other order should be issued and
(ii) when the Prospectus or any supplements to or amendments of the
Prospectus have been filed, and, with respect to the Registration Statement or
any post-effective amendment thereto, when the same has become effective; and

 

(h)                                 in the event that the Registrable
Shares are to be sold through underwriters, enter into and perform its
obligations under an underwriting agreement, in usual and customary form (including
customary indemnification of such underwriters by Parent), with the managing
underwriters of such offering, provided that VPVP enters into and performs its
obligations under such underwriting agreement (including customary
indemnification of such underwriters by VPVP).

 

Notwithstanding
the foregoing, Parent shall file a post-effective amendment to de-register any
unsold Merger Shares or Conversion Shares registered on an effective
Registration Statement as of the expiration of the Share Registration Period no
later than the one (1) year anniversary of, with respect to the Merger
Shares, the Closing Date, and with respect to the Conversion Shares, April 24,
2006, and shall cease all efforts, and shall no longer be obligated, to cause
any Registration Statement covering Merger Shares or Conversion Shares to
become effective or take any other measures set forth in this Section 6.1
with respect to the Merger Shares or Conversion Shares upon the one (1) year
anniversary of, with respect to the Merger Shares, the Closing Date, and with
respect to the Conversion Shares, April 24, 2006.

 

6.2                               Delay in Effectiveness of
Registration Statement.

 

(a)                                 Parent further agrees that (i) in
the event the Registration Statement has not been filed with the SEC within
thirty (30) days after the Measure Date, VPVP shall be entitled to receive from
Parent liquidated damages in an amount equal to 1.0% of the total aggregate
purchase price of the Registrable Shares purchased by VPVP that are to be
registered on such Registration Statement (a “Liquidated
Damages Payment”); (ii) in the event the Registration Statement
has not been filed with the SEC within sixty (60) days after the Measure Date,
VPVP shall be entitled to receive from Parent an additional Liquidated Damages
Payment; (iii) in the event the Registration Statement has not been
declared effective by the SEC within ninety (90) days after the Measure Date,
VPVP shall be entitled to receive an additional Liquidated Damages Payment and (iv) Parent
shall make an additional Liquidated Damages Payment for each thirty- (30)-day
period thereafter (pro rated for any period of less than thirty (30) days)
until the Registration Statement has been declared effective; although in no
event shall the aggregate Liquidated Damages Payments in any thirty- (30)-day
period exceed 1.0% of the total aggregate purchase price of the Registrable
Shares purchased by VPVP that are to be registered on such Registration
Statement.

 

(b)                                 Liquidated Damages Payments may, at
VPVP’s option, be delivered to VPVP in the form of cash or New Athletics
Common Stock. Except as provided in Section 6.2(c)(ii) hereof, Parent
shall deliver all Liquidated Damages Payments to VPVP by the

 

 

fifth (5th)
Business Day after the occurrence of the events described in clauses (i), (ii),
(iii) or (iv) of Section 6.2(a) hereof, as applicable (the “Payment Period”).

 

(c)                                  In the event that VPVP elects to
receive Liquidated Damages Payments in the form of Parent Common Stock,
and such payments would result in the issuance of shares in excess of the Share
Cap, Parent shall, at VPVP’s election, either:

 

(i)                                     issue VPVP shares of Parent Common
Stock up to the Share Cap and deliver the remainder of the Liquidated Damages
Payments in cash, such payments to be made within the Payment Period; or

 

(ii)                                  issue VPVP shares of Parent Common
Stock up to the Share Cap within the Payment Period, and then use its
commercially reasonable efforts to obtain stockholder approval for the issuance
to VPVP of shares of Parent Common Stock in excess of the Share Cap.

 

(d)                                 Notwithstanding anything to the
contrary contained in this Section 6.2 or in any other provision of this
Agreement, the Liquidated Damages Payments provided in this Section 6.2
shall be VPVP’s sole and exclusive monetary remedy in the event of the
occurrence of any of the events described in clauses (i), (ii), (iii) or (iv) of
Section 6.2(a) hereof; provided, however,
that VPVP shall retain all equitable remedies then available to it.

 

6.3                               Transfer of Securities;
Suspension.

 

(a)                                 VPVP agrees that it shall not effect
any sale, offer to sell, solicitation of offers to buy, disposition of, loan,
pledge or grant of any right with respect to any securities of Parent or any
derivative instruments, arrangement or securities the value of which is derived
from Parent securities (a “Disposition”)
or its right to purchase any securities of Parent or any derivative
instruments, arrangement or securities the value of which is derived from
Parent securities that would constitute a sale within the meaning of the Act,
except as contemplated in the Registration Statement referred to in Section 6.1
hereof or in accordance with the Act (including any exemption from the
registration requirements set forth therein), and that it shall promptly notify
Parent of any changes in the information set forth in the Registration
Statement regarding VPVP or its plan of distribution. VPVP further agrees that
it shall not effect a Disposition of any Securities during the fifteen-
(15)-trading-day period prior to and ending on the date of the execution of the
definitive agreements executed in connection with the Equity Investment.

 

(b)                                 Except in the event that Section 6.3(c) hereof
applies, Parent shall, at all times during the Registration Period or the Share
Registration Period, as applicable, promptly (i) prepare and file from
time to time with the SEC a post-effective amendment to the Registration
Statement or a supplement to the related Prospectus or a supplement or
amendment to any document incorporated therein by reference or file any other
required document so that such Registration Statement will not contain an
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 so that, as thereafter delivered to purchasers of the
Registrable Shares being sold thereunder, such Prospectus will not contain an
untrue statement of a material fact or omit to

 

 

state a
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; (ii) provide
VPVP copies of any documents filed pursuant to Section 6.3(b)(i) hereof
and (iii) inform VPVP that Parent has complied with its obligations
in Section 6.3(b)(i) hereof (or that, if Parent has filed a post-effective
amendment to the Registration Statement that has not yet been declared
effective, Parent shall notify VPVP to that effect, shall use its commercially
reasonable efforts to secure the effectiveness of such post-effective amendment
as promptly as possible and shall promptly notify VPVP pursuant to Section 6.3(b)(iii) hereof
when the amendment has become effective).

 

(c)                                  Subject to Section 6.3(d) hereof,
in the event of (i) 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 or for additional information; (ii) 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; (iii) the receipt by Parent of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Shares for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose or (iv) 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 Parent shall
deliver a notice in writing to VPVP (the “Suspension Notice”)
to the effect of the foregoing and, upon receipt of such Suspension Notice,
VPVP shall refrain from selling any Registrable Shares pursuant to the
Registration Statement (a “Suspension”)
until VPVP’s receipt of copies of a supplemented or amended Prospectus prepared
and filed by Parent, or until it is advised in writing by Parent that the
current Prospectus may be used. In the event of any Suspension, Parent
shall use its commercially reasonable efforts, consistent with the best
interests of Parent 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 VPVP.

 

(d)                                 In the event VPVP is prohibited from
selling Warrant Shares under the Registration Statement as a result of
Suspensions on more than two (2) occasions of more than forty-five (45)
days each in any twelve- (12)-month period, Parent shall pay to VPVP liquidated
damages in an amount equal to 1.0% of the total aggregate purchase price of the
Registrable Shares registered on such Registration Statement then held by VPVP
if, as a result of such Suspensions, VPVP is prohibited from selling Warrant
Shares under such Registration Statement for a period that exceeds sixty (60)
consecutive days or one hundred twenty (120) days in the aggregate in any
twelve- (12)-month period and for each thirty- (30)-day period thereafter
during which such prohibition continues; provided, however,
that in no event shall Parent be obligated to pay more than 1.0% of the total
aggregate purchase price of the Warrant Shares registered on such Registration
Statement then held by VPVP in any thirty- (30)-day period.

 

 

(e)                                  In the event VPVP is prohibited from
selling Merger Shares or Conversion Shares under the Registration Statement as
a result of Suspensions for more than sixty (60) days in any twelve- (12)-month
period, then (i) Parent shall pay to VPVP liquidated damages in an amount
equal to one percent (1.0%) of the total aggregate purchase price of the Merger
Shares or Conversion Shares registered on such Registration Statement then held
by VPVP if, as a result of such Suspensions, VPVP is prohibited from selling Merger
Shares or Conversion Shares under such Registration Statement for a period that
exceeds sixty (60) days in the aggregate in any twelve- (12)-month period and (ii) after
the date, if any, on which Parent becomes obligated to pay VPVP liquidated
damages pursuant to the preceding clause (i), Parent shall pay to VPVP
additional liquidated damages in an amount equal to one percent (1.0%) of the
total aggregate purchase price of the Merger Shares or Conversion Shares registered
on such Registration Statement then held by VPVP for each additional thirty
(30) days thereafter during which as a result of a suspension VPVP is
prohibited from selling shares under such Registration Statement; provided,
however, that in no event shall Parent be obligated to pay more than one
percent (1.0%) of the total aggregate purchase price of the Merger Shares or
Conversion Shares registered on such Registration Statement then held by VPVP
in any thirty- (30)-day period.

 

(f)                                   In the event of a sale of
Registrable Shares by VPVP under the Registration Statement, VPVP must also
deliver to Parent’s transfer agent, with a copy to Parent, a Certificate of
Subsequent Sale substantially in the form attached hereto as Exhibit C,
so that the Registrable Shares may be properly transferred.

 

6.4                               Indemnification. For the purpose of this Section 6.4,
the term “Registration Statement” shall include
the Prospectus, any preliminary or final prospectus, exhibit, supplement or
amendment included in or relating to the Registration Statement referred to in Section 6.1
hereof, and the term “Rules and Regulations”
shall mean the rules and regulations promulgated under the Act.

 

(a)                                 Indemnification by Parent. Parent agrees to indemnify and
hold harmless VPVP and each Person, if any, who controls VPVP within the
meaning of the Act (collectively, the “VPVP Indemnitees”),
against any losses, claims, damages, liabilities or expenses to which the VPVP
Indemnitees may become subject, under the Act, the Exchange Act, or any
other federal or state statutory law or regulation insofar as such losses,
claims, damages, liabilities or expenses (or actions in respect thereof as
contemplated below) arise out of or are based upon (i) any untrue
statement or alleged untrue statement of any material fact contained in the
Registration Statement, including the Prospectus, financial statements and
schedules, and all other documents filed as a part thereof, as amended at
the time of effectiveness of the Registration Statement, including any information
deemed to be a part thereof as of the time of effectiveness pursuant to
paragraph (b) of Rule 430A, or pursuant to Rule 434 of the Rules and
Regulations, or the Prospectus, in the form first filed with the SEC
pursuant to Rule 424(b) of the Rules and Regulations, or filed
as part of the Registration Statement at the time of effectiveness if no Rule 424(b) filing
is required (the “Prospectus”),
or any amendment or supplement thereto; (ii) the omission or alleged
omission to state in any of them a material fact required to be stated therein
or necessary to make the statements in any of them, in light of the
circumstances under which they were made, not misleading or (iii) any
failure of Parent to perform its obligations under this Agreement, and
shall reimburse the VPVP Indemnitees for any legal and other expenses as such
expenses are reasonably incurred by the VPVP Indemnitees in connection with

 

 

investigating,
defending, settling, compromising or paying any such loss, claim, damage,
liability, expense or action; provided, however,
that Parent shall not be liable in any such case (a) to the extent that
any such loss, claim, damage, liability or expense arises 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 Parent by or on behalf of VPVP
expressly for use in the Registration Statement or the Prospectus or (ii) the
failure of VPVP to comply with the covenants and agreements contained in Section 6.3
hereof respecting resale of Registrable Shares 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 VPVP before the pertinent sale
or sales by VPVP or (b) for any amount paid in settlement of any such
loss, claim, damage, liability, expense or action if such settlement is
effected without the consent of Parent, which consent shall not be unreasonably
withheld.

 

(b)                                 Indemnification by VPVP. VPVP agrees to indemnify and hold
harmless Parent, each of its directors, each of its officers who sign the
Registration Statement and each Person, if any, who controls Parent within the
meaning of the Act, against any losses, claims, damages, liabilities or
expenses to which Parent, each of its directors, each of its officers who sign
the Registration Statement or controlling Person may become subject, under
the Act, the Exchange Act, or any other federal or state statutory law or
regulation insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect thereof as contemplated below) arise out of or are based
upon (i) any failure on the part of VPVP to comply with the covenants
and agreements contained in Section 6.3 hereof respecting the sale of the
Registrable Shares or (ii) any untrue or alleged untrue statement of any
material fact contained in the Registration Statement, the Prospectus, or any
amendment or supplement to the Registration Statement or Prospectus, or the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, 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 the Registration
Statement, the Prospectus, or any amendment or supplement thereto, in reliance
upon and in conformity with written information furnished to Parent by or on
behalf of VPVP expressly for use therein; provided, however,
that VPVP shall not be liable for (a) any such untrue or alleged untrue
statement or omission or alleged omission of which VPVP has delivered to Parent
in writing a correction at least five (5) Business Days before the
occurrence of the transaction from which such loss was incurred, and VPVP shall
reimburse Parent, each of its directors, each of its officers who signed the
Registration Statement or controlling person for any legal and other expense
reasonably incurred by Parent, each of its directors, each of its officers who
signed the Registration Statement or controlling person in connection with
investigating, defending, settling, compromising or paying any such loss,
claim, damage, liability, expense or action for which such person is entitled
to be indemnified in accordance with this Section 6.4(b) or (b) any
amount paid in settlement of any such loss, claim, damage, liability, expense
or action if such settlement is effected without the consent of VPVP, which
consent shall not be unreasonably withheld.

 

 

(c)                                  Indemnification Procedure.

 

(i)                                     Promptly after receipt by an
indemnified party under this Section 6.4 of notice of the threat or
commencement of any action, such indemnified party shall, if a claim in respect
thereof is to be made against an indemnifying party under this Section 6.4,
promptly notify the indemnifying party in writing of the claim; but the
omission so to notify the indemnifying party shall not relieve it from any
liability that it may have to any indemnified party for contribution or
otherwise under the indemnity agreement contained in this Section 6.4
except to the extent it is materially prejudiced as a result of such failure.

 

(ii)                                  In case any such action is brought
against any indemnified party and such indemnified party seeks or intends to
seek indemnity from an indemnifying party, the indemnifying party shall be
entitled to participate in, and, to the extent that it may wish, jointly
with all other indemnifying parties similarly notified, to assume the defense
thereof; provided, however, that if the
defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be a conflict between the positions of the indemnifying
party and the indemnified party in conducting the defense of any such action or
that there may be legal defenses available to it or other indemnified
parties that are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to
select separate counsel to assume such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party
or parties. Upon receipt of notice from the indemnifying party to such
indemnified party of its election so to assume the defense of such action, the
indemnifying party shall not be liable to such indemnified party under this Section 6.4
for any legal or other expenses subsequently incurred by such indemnified party
in connection with the defense thereof unless:

 

(1)                                 the indemnified party shall have
employed such counsel in connection with the assumption of legal defenses in
accordance with the proviso to the first sentence of clause (ii) above (it
being understood, however, that the indemnifying party shall not be liable for
the expenses of more than one (1) separate counsel, approved by such
indemnifying party representing all of the indemnified parties who are parties
to such action); or

 

(2)                                 the indemnifying party shall not
have counsel reasonably satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of commencement of
action, in each of which cases the reasonable fees and expenses of counsel
shall be at the expense of the indemnifying party. Notwithstanding the
provisions of this Section 6.4, (A) with respect to claims made
pursuant to clause (i) of Section 6.4(b) hereof, VPVP shall not
be liable for any indemnification obligation under this Agreement in excess of
the amount of net proceeds received by VPVP from the sale of the Registrable
Shares and (B) with respect to claims made pursuant to clause (ii) of
Section 6.4(b) hereof, VPVP shall not be liable for any
indemnification obligation under this Agreement in excess of the amount of net
proceeds received by VPVP from the sale of the Registrable Shares giving rise
to such liability.

 

 

(d)                                 Contribution.

 

(i)                                     If a claim for indemnification under
this Section 6.4 is unavailable to an indemnified party (by reason of
public policy or otherwise), then each indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of any losses, claims, damages,
liabilities or expenses referred to in this Agreement, in such proportion as is
appropriate to reflect the relative fault of the indemnifying party and
indemnified party in connection with the actions, statements or omissions that
resulted in such losses, claims, damages, liabilities or expenses as well as
any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied
by, such indemnifying party or indemnified party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission. The amount paid or payable by a party as a
result of any losses, claims, damages, liabilities or expenses shall be deemed
to include, subject to the limitations set forth in this Section 6.4, any
reasonable attorneys’ or other reasonable fees or expenses incurred by such
party in connection with any proceeding to the extent such party would have
been indemnified for such fees or expenses if the indemnification provided for
in this Section 6.4 was available to such party in accordance with its
terms.

 

(ii)                                  The parties hereto agree that it
would not be just and equitable if contribution pursuant to this Section 6.4
were determined by pro rata allocation or by any other method of allocation
that does not take into account the equitable considerations referred to in the
immediately preceding paragraph. Notwithstanding the provisions of this Section 6.4,
(A) with respect to claims made pursuant to clause (i) of Section 6.4(b) hereof,
VPVP shall not be liable to contribute any amount in excess of the amount of
net proceeds received by VPVP from the sale of the Registrable Shares and (B) with
respect to claims made pursuant to clause (ii) of Section 6.4(b) hereof,
VPVP shall not be liable to contribute any amount in excess of (x) the amount
by which the net proceeds received by VPVP from the sale of the Registrable
Shares giving rise to such liability exceeds (y) the amount of any damages that
VPVP has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No party to this Agreement
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any other party to this
Agreement who was not guilty of such fraudulent misrepresentation.

 

6.5                               Termination of Conditions and
Obligations.
The restrictions imposed by Section 6.3 hereof upon the transferability of
the Registrable Shares shall cease and terminate as to any particular number of
Registrable Shares upon the Registration Termination Date or at such time as an
opinion of counsel satisfactory in form and substance to Parent shall have
been rendered to the effect that such conditions are not necessary in order to
comply with the Act. Notwithstanding the foregoing, it is expressly understood
that no such opinion of counsel shall be required if Parent shall be furnished
with written documentation reasonably satisfactory to it that such Registrable
Shares are being transferred in a customary transaction exempt from
registration under Rule 144 under the Act.

 

6.6                               Rule 144. For a period commencing, with
respect to the Merger Shares, on the date hereof, and with respect to the
Conversion Shares, on April 24, 2006, and ending on the

 

 

date on
which VPVP may sell all of the Merger Shares or Conversion Shares pursuant
to Rule 144(k) under the Act, Parent agrees with VPVP to:

 

(a)                                 comply with the requirements of Rule 144(c) under
the Act with respect to current public information about Parent; and

 

(b)                                 file with the SEC in a timely manner
all reports and other documents required of Parent under the Act and the
Exchange Act (at any time it is subject to such reporting requirements).

 

3.                                      Full
Force and Effect. Except as expressly modified by this Amendment, the
Agreement is unmodified and this Amendment shall not impair the full force and
effect of the Agreement.

 

4.                                      Choice
of Law. This Amendment shall be
governed by, and construed in accordance with, the law of the State of Delaware
without regard to conflict of law principles that would result in the
application of any law other than the law of the State of Delaware.

 

5.                                      Counterparts.
This Amendment may be executed in one or more counterparts, and by the
different parties hereto in separate counterparts, each of which when executed
shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the parties hereto have
executed this Amendment or caused this Amendment to be duly executed on their
respective behalf, by their respective officers thereunto duly authorized, all
as of the day and year first above written.

 

	
   

  	
  AVIZA
  TECHNOLOGY, INC.

  
	
   

  	
  (f/k/a New
  Athletics, Inc.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Patrick C. O’Connor

  	
   

  
	
   

  	
  By: Patrick C. O’Connor

  
	
   

  	
  Its: Executive
  Vice President and Chief Financial

  Officer

  
	
   

  	
   

  
	
   

  	
  TRIKON
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Patrick C. O’Connor

  	
   

  
	
   

  	
  By: Patrick C. O’Connor

  
	
   

  	
  Its: Sole
  Director

  
	
   

  	
   

  
	
   

  	
  VANTAGEPOINT
  VENTURE PARTNERS IV,

  (Q) L.P.

  
	
   

  	
   

  
	
   

  	
  By: VantagePoint
  Venture Associates IV, L.L.C.

  
	
   

  	
  Its: General
  Partner

  
	
   

  	
   

  
	
   

  	
  /s/ Alan E.
  Salzman

  	
   

  
	
   

  	
  By:  Alan
  E. Salzman

  
	
   

  	
  Its:  Managing
  Member

  
	
   

  	
   

  
	
   

  	
  VANTAGEPOINT
  VENTURE PARTNERS IV,

  L.P.

  
	
   

  	
   

  
	
   

  	
  By: VantagePoint
  Venture Associates IV, L.L.C.

  
	
   

  	
  Its: General
  Partner

  
	
   

  	
   

  
	
   

  	
  /s/ Alan E.
  Salzman

  	
   

  
	
   

  	
  By: Alan E.
  Salzman

  
	
   

  	
  Its: Managing
  Member

  
	
   

  	
   

  
	
   

  	
  VANTAGEPOINT
  VENTURE PARTNERS IV

  PRINCIPALS FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By: VantagePoint
  Venture Associates IV, L.L.C.

  
	
   

  	
  Its: General
  Partner

  
	
   

  	
   

  
	
   

  	
  /s/ Alan E.
  Salzman

  	
   

  
	
   

  	
  By: Alan E.
  Salzman

  
	
   

  	
  Its: Managing
  Member

  
				

 

Amendment
to Second Amended and Restated Stockholder AgreementExhibit 10.1

 

PAPA JOHN’S INTERNATIONAL, INC.

1999 TEAM MEMBER STOCK OWNERSHIP PLAN

 

Amended and Restated as of April 19, 2006

 

ARTICLE 1. PURPOSE

 

The purpose of
the 1999 Team Member Stock Ownership Plan (the “Plan”) is to enhance the
ability of Papa John’s International, Inc. and its subsidiaries to secure and
retain the services of persons eligible to participate in the Plan and to
provide incentives for such persons to exert maximum efforts for the success of
the Company.

 

ARTICLE 2. DEFINITIONS AND
CONSTRUCTION

 

2.1  Definitions. As used in the Plan,
terms defined parenthetically immediately after their use shall have the
respective meanings provided by such definitions, and the terms set forth below
shall have the following meanings (in either case, such meanings shall apply
equally to both the singular and plural forms of the terms defined):

 

(a) “Award”
shall mean, individually or collectively, a grant under the Plan of Options,
Restricted Stock or Performance Units.

 

(b) “Board”
shall mean the Board of Directors of the Company.

 

(c) “Cause”
shall mean (i) the failure by a Participant to render services to the Company,
which failure amounts to gross neglect or gross insubordination, (ii) the
commission by a Participant of an act of fraud or embezzlement against the
Company, or (iii) a Participant being convicted of a felony, or failing to
contest a felony prosecution.

 

(d) A “Change
in Control” shall mean (i) the acquisition by any person after the date hereof
of beneficial ownership of 50% or more of the voting power of the Company’s
outstanding voting stock, (ii) three or more of the current members of the
Board ceasing to be members of the Board (unless any replacement director is
elected by a vote of either at least 75% of the remaining directors, or of at
least 75% of the shares entitled to vote on such replacement) or (iii) approval
by the stockholders of the Company of (a) a merger or consolidation of the
Company with another corporation if the stockholders of the Company immediately
before such vote will not, as a result of such merger or consolidation, own
more than 50% of the voting stock of the corporation resulting from such merger
or consolidation, or (b) a complete liquidation of the Company or sale of all,
or substantially all, of the assets of the Company. Notwithstanding the
foregoing, a Change in Control shall not occur solely because 50% or more of
the voting stock of the Company is acquired by (i) a trust which is part of an
employee benefit plan maintained by the Company or its Subsidiaries or (ii) a
corporation which, immediately following such acquisition, is owned directly or
indirectly by the stockholders of the Company in

 

 

the same proportion as their ownership of stock in the Company
immediately prior to such acquisition.

 

(e) “Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time, or any successor
thereto.

 

(f) “Committee”
shall mean the committee described in Section 3.1.

 

(g) “Common
Stock” shall mean shares of the Company’s common stock, par value $.01 per
share.

 

(h) “Company”
shall mean Papa John’s International, Inc., a Delaware corporation.

 

(i) “Disability”
shall mean a physical or mental infirmity which the Committee determines
impairs the Participant’s ability to perform substantially his or her duties
for a period of 180 consecutive days.

 

(j) “Effective
Date” shall mean February 25, 1999, the date the Plan was adopted by the Board.

 

(k) “Employee”
shall mean an individual who is a full-time or part-time employee of the
Company or a Subsidiary.

 

(l) “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

 

(m) “Fair
Market Value” of a share of Common Stock shall mean, as of any applicable date,
the closing sale price of the Common Stock on the NASDAQ National Market System
or any national or regional stock exchange on which the Common Stock is then
traded. If no such reported sale of the Common Stock shall have occurred on
such date, Fair Market Value shall mean the closing sale price of the Common
Stock on the next preceding date on which there was a reported sale. If the
Common Stock is not listed on the NASDAQ National Market System or a national
or regional stock exchange, the Fair Market Value of a share of Common Stock as
of a particular date shall be determined by such method as shall be determined
by the Committee.

 

(n) “ISOs”
shall have the meaning given such term in Section 6.1.

 

(o) “NQSOs”
shall have the meaning given such term in Section 6.1.

 

(p) “Option”
shall mean an option to purchase shares of Common Stock granted pursuant to
Article 6.

 

2

 

(q) “Option
Agreement” shall mean an agreement evidencing the grant of an Option as
described in Section 6.2.

 

(r) “Option
Exercise Price” shall mean the purchase price per share of Common Stock subject
to an Option, which shall not be less than the Fair Market Value on the date of
grant.

 

(s) “Participant”
shall mean any Employee or any consultant or advisor providing services to the
Company or a Subsidiary selected by the Committee to receive an Award under the
Plan.

 

(t) “Performance
Goals” shall have the meaning given such term in Section 8.4.

 

(u) “Performance
Period” shall have the meaning given such term in Section 8.3.

 

(v) “Performance
Unit” shall mean the right to receive a payment from the Company upon the
achievement of specified Performance Goals as set forth in a Performance Unit
Agreement.

 

(w) “Performance
Unit Agreement” shall mean an agreement evidencing a Performance Unit Award, as
described in Section 8.2.

 

(x) “Person”
shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange
Act and as used in Sections 13(d) and 14(d) thereof, including a “group” as
defined in Section 13(d).

 

(y) “Plan”
shall mean this Papa John’s International, Inc. 1999 Team Member Stock
Ownership Plan as the same may be amended from time to time.

 

(z) “Restriction
Period” shall mean the period determined by the Committee during which the
transfer of shares of Common Stock is limited in some way or such shares are
otherwise restricted or subject to forfeiture as provided in Article 7.

 

(aa) “Restricted
Stock” shall mean shares of Common Stock granted pursuant to Article 7 as to
which the restrictions have not lapsed.

 

(ab) “Restricted
Stock Agreement” shall mean an agreement evidencing a Restricted Stock Award,
as described in Section 7.2.

 

(ac) “Retirement”
shall mean retirement by a Participant in accordance with the terms of the
Company’s retirement or pension plans, if any, or, if the Company has no such
plans, then retirement after reaching age 65.

 

(ad) “Subsidiary”
shall mean, with respect to any company, any corporation or other Person of
which a majority of its voting power, equity securities, or equity interest is
owned, directly or indirectly, by such company.

 

3

 

2.2  Gender and Number. Unless otherwise
indicated by the context, reference to the masculine gender shall include the
feminine gender, the plural shall include the singular and the singular shall
include the plural.

 

2.3  Severability. In the event any
provision of the Plan shall be held illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining parts of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision
had not been included.

 

ARTICLE 3. ADMINISTRATION

 

3.1  The Committee. The Plan shall be
administered by the Compensation Committee of the Board, or by any other
committee (the “Committee”) appointed by the Board consisting of two or more
directors of the Company. It is intended that each Committee member shall be a “non-employee
director” within the meaning of Rule 16b-3 under the Exchange Act and an “outside
director” within the meaning of Section 162(m) of the Code. The members of the
Committee shall be appointed from time to time by, and shall serve at the
discretion of, the Board.

 

3.2  Authority of the Committee. Subject to
the provisions of the Plan, the Committee shall have full authority to:

 

(a) select Participants
to whom Awards are granted;

 

(b) determine
the size, type and frequency of Awards granted under the Plan;

 

(c) determine
the terms and conditions of Awards, including any restrictions, conditions or
forfeiture provisions relating to the Award, which need not be identical;

 

(d) determine
whether and the extent to which Performance Goals have been met:

 

(e) determine
whether and when a Participant’s status as an Employee, consultant, or advisor
has terminated for purposes of the Plan;

 

(f) cancel or
modify, with the consent of the Participant, outstanding Awards and grant new
Awards in substitution therefor, provided, however, that (without limitation of
the provisions of Section 4.1 with respect to lapsed, expired, terminated or
forfeited Awards) the Committee may not, without approval of the Company’s
stockholders, reduce the Option Exercise Price of a previously granted Award,
or effect such a reduction through the cancellation and replacement or regrant
of any Award.

 

(g) accelerate
the exercisability of, and accelerate or waive any or all the restrictions and
conditions applicable to, any Award, for any reason;

 

4

 

(h) extend the
duration of an Option exercise period or term of an Award;

 

(i) construe
and interpret the Plan and any agreement or instrument entered into under the
Plan;

 

(j) establish,
amend and rescind rules and regulations for the Plan’s administration; and

 

(k) amend the
terms and conditions of any outstanding Award to the extent such terms and
conditions are within the discretion of the Committee as provided in the Plan.

 

The Committee shall have sole
discretion to make all other determinations which may be necessary or advisable
for the administration of the Plan. To the extent permitted by law and Rule 16b-3
promulgated under the Exchange Act, the Committee may delegate its authority. Notwithstanding
the foregoing, the Committee may not delegate its responsibilities hereunder if
such delegation would jeopardize compliance with the “outside directors”
requirement or any other applicable requirement under Section 162(m) of the
Code.

 

3.3  Decisions Binding. All determinations
and decisions made by the Committee pursuant to the provisions of the Plan, and
all related orders or resolutions of the Board, shall be final, conclusive and
binding upon all persons, including the Company, its stockholders, Employees,
Participants and their estates and beneficiaries.

 

3.4  Section 16 Compliance; Bifurcation of Plan.
It is the intention of the Company that the Plan and the administration of the
Plan comply in all respects with Section 16(b) of the Exchange Act and the
rules and regulations promulgated thereunder. If any Plan provision, or any
aspect of the administration of the Plan, is found not to be in compliance with
Section 16(b) of the Exchange Act, the provision or administration shall be
deemed null and void, and in all events the Plan shall be construed in favor of
its meeting the requirements of Rule 16b-3 promulgated under the Exchange Act. Notwithstanding
anything in the Plan to the contrary, the Board or the Committee, in its
discretion, may bifurcate the Plan so as to restrict, limit or condition the
use of any provision of the Plan to Participants who are subject to Section 16
of the Exchange Act without so restricting, limiting or conditioning the Plan
with respect to other Participants.

 

ARTICLE 4. SHARES AVAILABLE
UNDER THE PLAN

 

4.1  Number of Shares. Subject to
adjustment as provided in Section 4.3, the number of shares of Common Stock
reserved for issuance under the Plan is 2,000,000 shares. Shares as to which
options or other Awards granted under the Plan lapse, expire, terminate, are
forfeited or are canceled shall again become available for Awards under the
Plan. In addition, any shares of Common Stock reserved for issuance under the
Company’s 1993 Stock Ownership Incentive Plan (“1993 Plan”) in excess of the
number of shares as to which options or other benefits are

 

5

 

awarded thereunder, plus any shares as to which options or other
benefits granted under the 1993 Plan may lapse, expire, terminate or be
canceled, shall also be reserved and available for issuance or reissuance under
the Plan. Any Common Stock issued under the Plan may consist, in whole or in
part, of authorized and unissued shares or treasury shares.

 

4.2  Shares of Restricted Stock Available Under
the Plan. Subject to adjustment as provided in Section 4.3, the number of
shares of Common Stock which may be the subject of Awards granted in the form
of Restricted Stock is limited to 500,000 shares.

 

4.3  Adjustments in Authorized Shares and
Outstanding Awards. In the event of any change in the corporate structure
of the Company affecting the Common Stock, including a merger, reorganization,
consolidation, recapitalization, reclassification, split-up, spin-off,
separation, liquidation, stock dividend, stock split, reverse stock split,
share repurchase, share combination, share exchange, issuance of warrants or
debentures, the Committee may substitute or adjust the total number and class
of shares of Common Stock or other stock or securities which may be issued
under the Plan, and the number, class and price of shares subject to
outstanding Awards, as it, in its discretion, determines to be appropriate and
equitable to prevent dilution or enlargement of the rights of Participants and
to preserve, without exceeding, the value of any outstanding Awards; provided,
however, that the number of shares subject to any Award shall always be a whole
number. In the case of ISOs, such adjustment shall be made so as not to result
in a “modification” within the meaning of Section 424(h) of the Code.

 

ARTICLE 5. ELIGIBILITY AND
PARTICIPATION

 

All Employees
of the Company and its Subsidiaries and consultants or other advisors providing
services to the Company or a Subsidiary are eligible to receive Awards under
the Plan. In selecting Employees, consultants or advisors to receive Awards
under the Plan, as well as in determining the number of shares subject to, and
the other terms and conditions applicable to, each Award, the Committee shall
take into consideration such factors as it deems relevant in promoting the
purposes of the Plan, including the duties and responsibilities of such persons,
their present and potential contribution to the success of the Company and
their anticipated number of years of active service or contribution remaining
with the Company or a Subsidiary.

 

ARTICLE 6. STOCK OPTIONS

 

6.1  Grant of Options. Subject to the terms
and provisions of the Plan, the Committee may grant Options to Participants at
any time and from time to time, in the form of options which are intended to
qualify as incentive stock options within the meaning of Section 422 of the
Code (“ISOs”), Options which are not intended to so qualify (“NQSOs”) or a
combination thereof. Notwithstanding the foregoing, ISOs may only be granted to
Employees of the Company and its subsidiaries (within the meaning of Section
424(f) of the Code). The maximum number of shares in respect of which Options
may be granted to a Participant during any calendar year shall be 500,000
shares.

 

6

 

6.2  Option Agreement. Each Option shall be
evidenced by an Option Agreement that shall specify the Option Exercise Price,
the duration of the Option, the number of shares to which the Option relates,
forfeiture provisions as deemed appropriate by the Committee and such other
provisions as the Committee may determine or which are required by the Plan. The
Option Agreement shall also specify whether the Option is intended to be an ISO
or a NQSO and shall include provisions applicable to the particular type of
Option granted.

 

6.3  Duration of Options. Subject to the
provisions of Section 6.7, each Option shall expire at such time as is
determined by the Committee at the time of grant; provided, however, that no
Option shall at the time of grant be exercisable later than the tenth
anniversary of its grant.

 

6.4  Exercise of Options. Options shall be
exercisable at such times and be subject to such restrictions and conditions,
including forfeiture provisions, as the Committee shall approve at the time of
grant, which need not be the same for each grant or for each Participant. Options
shall be exercised by delivery to the Company of a written notice of exercise,
setting forth the number of shares with respect to which the Option is to be
exercised and accompanied by full payment of the Option Exercise Price and all
applicable withholding taxes.

 

6.5  Payment of Option Exercise Price. The
Option Exercise Price for shares of Common Stock as to which an Option is
exercised shall be paid to the Company in full at the time of exercise either
(a) in cash in the form of currency or other cash equivalent acceptable to the
Company, (b) by tendering Common Stock having a Fair Market Value (at the close
of business on the date the Company receives the notice of exercise) equal to
the Option Exercise Price, (c) any other reasonable consideration that the
Committee may deem appropriate or (d) by a combination of the forms of
consideration described in (a), (b) and (c) of this Section. The Committee may
permit the cashless exercise of Options as described in Regulation T
promulgated by the Federal Reserve Board, subject to applicable securities law
restrictions, or by any other means which the Committee determines to be
consistent with the Plan’s purpose and applicable law.

 

6.6  Vesting Upon Change in Control. Upon a
Change in Control, any then outstanding Options held by Participants shall
become fully vested and immediately exercisable.

 

6.7  Termination of Employment. If the
Participant’s status as an Employee, consultant or advisor is terminated for
Cause, all then outstanding Options of such Participant, whether or not
exercisable, shall terminate immediately. If the Participant’s status as an
Employee, consultant or advisor is terminated for any reason other than for
Cause, death, Disability or Retirement, to the extent then outstanding Options
of such Participant are exercisable and subject to the provisions of the
relevant Option Agreement, such Options may be exercised by such Participant or
his personal representative at any time prior to the earlier of (a) the
expiration date of the Options or (b) the date which is 60 days after the date
of such termination of employment. In the event of the Retirement of a
Participant, to the extent then outstanding Options of such

 

7

 

Participant are exercisable, such Options may be exercised by the
Participant (c) in the case of NQSOs, within one year after the date of
Retirement and (d) in the case of ISOs, within 90 days after Retirement;
provided, however, that no such Options may be exercised on a date subsequent
to their expiration. In the event of the death or Disability of a Participant
while employed by the Company or a Subsidiary or while the Participant is
serving as a consultant or advisor to the Company or a Subsidiary, all then
outstanding Options of such Participant shall become fully vested and
immediately exercisable, and may be exercised at any time within one year after
the date of death or determination of Disability; provided however that no such
Options may be exercised on a date subsequent to their expiration. Options may
be exercised as provided in this Section (a) in the event of the death of a
Participant, by the person or persons to whom rights pass by will or by the
laws of descent and distribution, or if appropriate, the legal representative
of the decedent’s estate and (b) in the event of the Disability of a
Participant, by the Participant, or if such Participant is incapacitated, by
the Participant’s legal representative.

 

ARTICLE 7. RESTRICTED STOCK

 

7.1  Grant of Restricted Stock. Subject to
the terms and provisions of the Plan, the Committee may grant shares of
Restricted Stock to Participants at any time and from time to time and upon
such terms and conditions as it may determine. The purchase price for shares of
Restricted Stock shall be determined by the Committee, but shall not be less
than the par value of the Common Stock, except in the case of treasury shares,
for which no payment need be required.

 

7.2  Restricted Stock Agreement. Each
Restricted Stock grant shall be evidenced by a Restricted Stock Agreement which
shall specify the Restriction Period, the number of shares of Restricted Stock
granted and such other provisions as the Committee may determine and which are
required by the Plan.

 

7.3  Non-Transferability of Restricted Stock.
Except as provided in this Article 7 or the applicable Restricted Stock
Agreement, shares of Restricted Stock may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated until the end of the applicable
Restriction Period as specified in the Restricted Stock Agreement and the
satisfaction of any other conditions determined at the time of grant specified
in the Restricted Stock Agreement. Except as provided in Section 7.9, however,
in no event may any Restricted Stock become vested in a Participant subject to
Section 16(b) of the Exchange Act prior to six months following the date of its
grant.

 

7.4  Other Restrictions. The Committee
shall impose such other restrictions on shares of Restricted Stock as it may
deem advisable, including, without limitation, restrictions based upon the
achievement of specific performance goals (relating to the Company, a
Subsidiary or regional or other operating division of the Company), years of
service and/or restrictions under applicable Federal or state securities laws. The
Committee may provide that any share of Restricted Stock shall be held
(together with a stock power executed in blank by the Participant) in custody
by the Company until any or all restrictions thereon shall have lapsed.

 

8

 

7.5  Forfeiture. The Committee shall
determine and set forth in a Participant’s Restricted Stock Agreement such
events upon which a Participant’s shares of Restricted Stock (or the proceeds
of a sale thereof) shall be forfeitable, which may include, without limitation,
the termination of a Participant’s employment and certain other activities.

 

7.6  Certificate Legend. In addition to any
legends placed on certificates pursuant to Section 7.4, each certificate
representing shares of Restricted Stock shall bear the following legend:

 

“The sale or
other transfer of the shares represented by this Certificate, whether
voluntary, involuntary or by operation of law, is subject to certain
restrictions on transfer as set forth in the Papa John’s International, Inc.
1999 Team Member Stock Ownership Plan, and in the related Restricted Stock
Agreement. A copy of the Plan and such Restricted Stock Agreement may be
obtained from the Secretary of Papa John’s International, Inc.”

 

7.7  Removal of Restrictions. Except as
otherwise provided in this Article 7 or the Restricted Stock Agreement, shares
of Restricted Stock shall become freely transferable by the Participant and no
longer subject to forfeiture after the last day of the Restriction Period. Once
the shares of Restricted Stock are released from their restrictions (including
forfeiture provisions), the Participant shall be entitled to have the legend
required by Section 7.6 removed from the Participant’s share certificate, which
certificate shall thereafter represent freely transferable and nonforfeitable
shares of Common Stock free from any and all restrictions under the Plan.

 

7.8  Voting Rights; Dividends and Other
Distributions. Unless the Committee exercises its discretion as provided in
Section 7.10, during the Restriction Period, Participants holding shares of
Restricted Stock may exercise full voting rights, and shall be entitled to
receive all dividends and other distributions paid with respect to such
Restricted Stock. If any dividends or distributions are paid in Common Stock,
such Common Stock shall be subject to the same restrictions as the shares of
Restricted Stock with respect to which they were paid.

 

7.9  Lapse of Restrictions Upon Change in
Control. Upon a Change in Control, any restrictions and other conditions
pertaining to then outstanding shares of Restricted Stock held by Participants,
including, but not limited to, vesting requirements, shall lapse and such
shares shall thereafter be immediately transferable and nonforfeitable.

 

7.10  Treatment of Dividends. At the time
shares of Restricted Stock are granted to a Participant, the Committee may, in
its discretion, determine that the payment of dividends, or a specified portion
thereof, declared or paid on such shares shall be deferred until the lapse of
the restrictions with respect to such shares, such deferred dividends to be
held by the Company for the account of the Participant. In the event of such
deferral, there may be credited at the end of

 

9

 

each year (or portion thereof) interest on the amount of the account
during the year at a rate per annum as the Committee, in its discretion, may
determine. Deferred dividends, together with interest accrued thereon, if any,
shall be (a) paid to the Participant upon the lapse of restrictions on the
shares of Restricted Stock as to which the dividends related or (ii) forfeited
to the Company upon the forfeiture of such shares by the Participant.

 

7.11  Termination of Employment. If the
Participant’s status as an Employee, consultant or advisor is terminated for
any reason other than death or Disability prior to the expiration of the
Restriction Period applicable to any shares of Restricted Stock then held by
the Participant, such shares shall thereupon be forfeited immediately by the
Participant and returned to the Company, and the Participant shall only receive
the amount, if any, paid by the Participant for such Restricted Stock. If the
Participant’s status as an Employee, consultant or advisor is terminated as a
result of death or Disability prior to the expiration of the Restriction Period
applicable to any shares of Restricted Stock then held by the Participant, any
restrictions and other conditions pertaining to such shares then held by the
Participant, including, but not limited to, vesting requirements, shall
immediately lapse and such shares shall thereafter be immediately transferable
and nonforfeitable. Notwithstanding anything in the Plan to the contrary, the
Committee may determine, in its sole discretion, in the case of any termination
of a Participant’s status as an Employee, consultant or advisor other than for
Cause, that the restrictions on some or all of the shares of Restricted Stock
awarded to a Participant shall immediately lapse and, to the extent the
Committee deems appropriate, such shares shall thereafter be immediately
transferable and nonforfeitable.

 

ARTICLE 8. PERFORMANCE UNITS

 

8.1  Grant of Performance Units. The
Committee may, from time to time and upon such terms and conditions as it may
determine, grant Performance Units which will become payable to a Participant
upon achievement of specified Performance Goals. The maximum payment that can
be made pursuant to Performance Units granted to any one Participant in any
calendar year shall be $1,000,000.

 

8.2  Performance Unit Agreement. Each
Performance Unit grant shall be evidenced by a Performance Unit Agreement that
shall specify the Performance Goals, the Performance Period and the number of
Performance Units to which it pertains.

 

8.3  Performance Period. The period of
performance (“Performance Period”) with respect to each Performance Unit shall
be such period of time, which shall not be less than one year, nor more than
five years, as determined by the Committee, for the measurement of the extent
to which Performance Goals are attained. The Performance Period may commence
prior to the date of grant of the Performance Unit to which it relates,
provided that at such time the attainment of the Performance Goal is
substantially uncertain and not more than 25% of the Performance Period has
expired.

 

10

 

8.4  Performance Goals. The goals (“Performance
Goals”) that are to be achieved with respect to each Performance Unit shall be
those objectives established by the Committee as it deems appropriate, and
which may relate to the net income, growth in net income, earnings per share,
growth of earnings per share, return on equity or return on capital, of the
Company, or any other performance objectives relating to the Company, a
Subsidiary or regional or other operating unit of the Company, or the
individual Participant. Each Performance Unit Agreement shall specify a minimum
acceptable level of achievement with respect to the Performance Goals below
which no payment will be made and shall set forth a formula for determining the
payment to be made if performance is at or above such minimum based upon a
range of performance levels relating to the Performance Goals. The Committee
shall certify that the Performance Goals for Awards of Performance Units under
the Plan have been satisfied prior to the determination and payment of any such
incentive in accordance with the Plan.

 

8.5  Adjustment of Performance Goals. The
Committee may adjust Performance Goals and the related minimum acceptable level
of achievement if, in the sole judgment of the Committee, events or
transactions occur subsequent to the date of grant which are unrelated to the
performance of the Participant and which the Committee expects to have a
substantial effect on the ability of the Participant to attain the Performance
Goals. If a Participant is promoted, demoted or transferred to a Subsidiary or
different operating division of the Company during a Performance Period, then,
to the extent that the Committee determines the Performance Goals or
Performance Period are no longer appropriate, the Committee may, but shall not
be required to, adjust, change or eliminate the Performance Goals or the
applicable Performance Period as it deems appropriate in order to make them
appropriate and comparable to the initial Performance Goals or Performance
Period. Notwithstanding the foregoing, the Committee shall not be entitled to
adjust, change or eliminate any Performance Goals or Performance Period if the
exercise of such discretion would cause the related compensation to fail to
qualify as performance-based compensation within the meaning of Section 162(m)
of the Code.

 

8.6  Termination of Employment. If the
employment of a Participant shall terminate prior to the expiration of the
Performance Period for any reason other than for death, Disability or
Retirement, the Performance Units then held by the Participant shall terminate.
In the case of termination of employment by reason of Disability or Retirement
of a Participant prior to the expiration of the Performance Period, any then
outstanding Performance Units of such Participant shall be (a) payable pro rata
based upon the number of full calendar months of employment during the
Performance Period; (b) calculated based upon the achievement of the
Performance Goals over the entire Performance Period; and (c) calculated and
payable after the end of the Performance Period. In the event of death of a
Participant prior to the expiration of the Performance Period, any then
outstanding Performance Units of such Participant shall be (i) payable pro rata
based upon the number of full calendar months of employment during the
Performance Period; (ii) calculated based upon the achievement of the
Performance Goals during the next-ending Performance Period; and (iii)
calculated and payable at the end of the next-ending Performance Period.

 

11

 

8.7  Payment Upon Change in Control. Upon a
Change in Control, any then outstanding Performance Units shall become fully
vested and immediately payable in an amount which is equal to the greater of
(a) the maximum amount payable under the Performance Unit multiplied by a
percentage equal to the percentage that would have been earned under the terms
of the Performance Unit Agreement assuming that the rate at which the
Performance Goals have been achieved as of the date of such Change in Control
would have continued until the end of the Performance Period or (b) the maximum
amount payable under the Performance Unit multiplied by the percentage of the
Performance Period completed by the Participant at the time of the Change in
Control; provided, however, that if no maximum amount payable is specified in the
Performance Unit Agreement, the amount payable shall be such amount as the
Committee shall determine is reasonable.

 

8.8  Payment of Performance Units. Subject
to such terms and conditions as the Committee may impose, and unless otherwise
provided in the Performance Unit Agreement, Performance Units shall be payable
within 90 days following the end of the Performance Period during which the
Participant attained at least the minimum acceptable level of achievement under
the Performance Goals, or 90 days following a Change in Control, as applicable.
The Committee, in its discretion, may determine at the time of payment required
in connection with a Performance Unit whether such payment shall be made (a)
solely in cash or (b) up to 50% in shares of Common Stock (valued at their Fair
Market Value as of the close of business on the date preceding the date of
payment) with the balance in cash; provided, however, that if a Performance
Unit becomes payable upon a Change in Control, the Performance Unit shall be paid
solely in cash.

 

8.9  Designation of Beneficiary. Each
Participant may, from time to time, name any beneficiary or beneficiaries (who
may be named contingently or successively) to whom the right to receive
payments under a Performance Unit is to be paid in case of the Participant’s
death before receiving any or all such payments. Each such designation shall
revoke all prior designations by the Participant, shall be in a form prescribed
by the Company and shall be effective only when filed by the Participant in
writing with the Committee during the Participant’s lifetime. In the absence of
any such designation, benefits remaining unpaid at the Participant’s death
shall be paid to the Participant’s estate.

 

ARTICLE 9. AMENDMENT,
MODIFICATION AND TERMINATION

 

9.1  Termination Date. The Plan shall
terminate on the earliest to occur of (a) the tenth anniversary of the
Effective Date, (b) the date when all shares of Common Stock available under
the Plan shall have been acquired and the payment of all benefits in connection
with Performance Unit Awards has been made or (c) such other date as the Board
may determine in accordance with Section 9.2.

 

9.2  Amendment, Modification and Termination.
The Board may, at any time, amend, suspend, modify or terminate the Plan provided
that (a) no amendment shall be made without

 

12

 

stockholder approval if such approval is necessary to satisfy any
applicable tax or regulatory law or regulation and the Board determines it is
appropriate to seek stockholder approval, and (b) upon or following the
occurrence of a Change in Control no amendment may adversely affect the rights
of any Person in connection with an Award previously granted. The Committee may
amend the terms of any Award, prospectively or retroactively, but no such
amendment shall impair the rights of any Participant without such Participant’s
consent. Each Option and certain Performance Units granted under the Plan are
intended to be performance-based compensation within the meaning of Section
162(m) of the Code. The Committee shall not be entitled to exercise any
discretion otherwise authorized hereunder with respect to such Options or
Performance Units if the ability to exercise such discretion or the exercise of
such discretion itself would cause the compensation attributable to such
Options or Performance Units to fail to qualify as performance-based
compensation.

 

9.3  Awards Previously Granted. No
amendment, modification or termination of the Plan shall in any manner adversely
affect any outstanding Award without the written consent of the Participant
holding such Award.

 

ARTICLE 10. NON-TRANSFERABILITY

 

A Participant’s
rights under this Plan may not be assigned, pledged or otherwise transferred
other than by will or the laws of descent and distribution, except that upon a
Participant’s death, the Participant’s rights to payment pursuant to a
Performance Unit may be transferred to a beneficiary designated in accordance
with Section 8.9. Notwithstanding anything herein to the contrary, in the case
of NQSOs, the Committee may, in its sole discretion, by appropriate provisions
in the Participant’s Option Agreement, permit the Participant to transfer all
or a portion of the Option, without consideration, to (i) the Participant’s
spouse or lineal descendants (“Family Members”), (ii) a trust for the exclusive
benefit of Family Members, (iii) a charitable remainder trust of which the
Participant and/or Family Members are the exclusive beneficiaries (other than
the charitable beneficiary), or (iv) a partnership or a limited liability
company in which the Participant and Family Members are the sole partners or
members, as applicable. In the event that any Option is transferred by a
Participant in accordance with the provisions of the immediately preceding
sentence, then subsequent transfers of the Option by the transferee shall be
prohibited. For purposes of the Option Agreement and the Plan, the term “Optionee”
shall be deemed to refer to the transferee wherever applicable, and the provisions
of Section 6.7 regarding termination of employment shall refer to the
Participant, not the transferee, but the transferee shall be permitted to
exercise the Option during the period provided for in Section 6.7 and the
Participant’s Option Agreement following the Participant’s termination of
employment.

 

ARTICLE 11. NO GRANTING OF
EMPLOYMENT RIGHTS

 

Neither the
Plan, nor any action taken under the Plan, shall be construed as giving any
person the right to become a Participant, nor shall participation in, or any
grant of an Award

 

13

 

under, the Plan be construed as giving a Participant any right with
respect to continuance of employment or service by or to the Company. The
Company expressly reserves the right to terminate, whether by dismissal,
discharge or otherwise, a Participant’s employment or consulting or other
business relationship at any time, with or without Cause, except as may
otherwise be expressly provided by any written agreement between the Company
and the Participant.

 

ARTICLE 12. WITHHOLDING

 

12.1  Tax Withholding. A Participant shall
remit to the Company an amount sufficient to satisfy Federal, state and local
taxes (including the Participant’s FICA obligation) required by law to be withheld
with respect to any grant, exercise or lapse of restrictions made under, or
occurring as a result of, the Plan.

 

12.2  Share Withholding. If the Company has
a withholding obligation upon the issuance of Common Stock under the Plan, a
Participant may, subject to the discretion of the Committee, elect to satisfy
the withholding requirement, in whole or in part, by having the Company
withhold shares of Common Stock having a Fair Market Value on the date the
withholding tax is to be determined equal to the amount required to be withheld
under applicable law. Notwithstanding the foregoing, the Committee may, by the
adoption of rules or otherwise, modify the provisions of this Section 12.2 or
impose such other restrictions or limitations on such elections as may be
necessary to insure that such elections will be exempt transactions under
Section 16(b) of the Exchange Act.

 

ARTICLE 13. INDEMNIFICATION

 

No member of
the Board or the Committee, nor any officer or Employee acting on behalf of the
Board or the Committee, shall be personally liable for any action,
determination or interpretation taken or made with respect to the Plan, and all
members of the Board, the Committee and each and any officer or Employee of the
Company acting on their behalf shall, to the extent permitted by law, be fully
indemnified and protected by the Company with respect to any such action,
determination or interpretation.

 

ARTICLE 14. SUCCESSORS

 

All
obligations of the Company with respect to Awards granted under the Plan shall
be binding on any successor to the Company, whether the existence of such
successor is a result of a direct or indirect purchase, merger, consolidation
or otherwise, of all or substantially all of the business or assets of the
Company.

 

14

 

ARTICLE 15. GOVERNING LAW

 

The Plan shall
be governed by, and construed in accordance with, the laws of the State of
Delaware without regard to its conflict of laws rules; provided, however, that
with respect to ISOs, the Plan and all agreements under the Plan shall be
construed so that they qualify as incentive stock options within the meaning of
Section 422 of the Code.

 

* * *

 

15

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