Document:

Exhibit 10.2

EMPLOYMENT AGREEMENT

          AGREEMENT, dated this 13th day of April, 2007, between Amtech Systems, Inc., an Arizona corporation (the “Company”) with offices at 131 South Clark Drive, Tempe, Arizona, and Jong S. Whang (the “Executive”),

W I T N E S S E T H:

          WHEREAS, the Company and the Executive wish to enter into an employment and compensation arrangement on the following terms and conditions:

          1.          Employment.  Subject to the terms and conditions of this Agreement, the Company agrees to employ the Executive as its Chief Executive Officer during the Employment Period (as defined in Section 7) and Executive agrees to perform such acts and duties and furnish such services to the Company and its affiliates consistent with such position as the Company’s Board of Directors shall from time to time direct.  The Executive shall have general and active charge of the business and affairs of the Company and, in such capacity, shall have responsibility for the day-to-day operations of the Company, subject to the authority and control of the Board of Directors of the Company.  During the Employment Period, the Company shall continue to take such actions as necessary to cause the Executive’s nomination as a member of the
Board of Directors of the Company.  The Executive hereby accepts such employment and agrees to devote his full time and best efforts to the duties provided herein, provided, that the Executive may engage in other business activities which (i) involve no conflict of interest with the interests of the Company (subject to approval by the Board of Directors, which approval shall not be unreasonably withheld) and (ii) do not materially interfere with the performance by the Executive of his duties under this Agreement.

          2.          Compensation.  For services rendered to the Company during the term of this Agreement, the Company shall compensate the Executive with an initial salary, payable in monthly installments, of $250,000 per annum.  Such base salary shall be reviewed on an annual basis by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) and shall be subject to being increased but not decreased in the discretion of the Compensation Committee.

          3.          Incentive Compensation.  The Executive shall also be entitled to annual cash bonuses for each fiscal year during the Employment Period (“Incentive Compensation”).  The Executive’s Incentive Compensation for each such fiscal year shall be determined in accordance with an annual bonus plan adopted by the Compensation Committee, which shall be no less favorable to the Executive than the bonus plan for fiscal 2007 adopted by the Compensation Committee on December 8, 2006.

          4.          Stock Options.

                       (a)          Outstanding Options.  All currently outstanding options to purchase Common Stock of the Company held by Executive shall remain in full force and effect in accordance with the provisions of Employer’s stock option plans and the applicable Stock Option Agreements, as may be amended from time to time.

                       (b)          New Options.  As further compensation, Employee shall be issued an annual grant of stock options by the Compensation Committee within ninety (90) days after the end of each fiscal year during the Employment Period.  The amount of such grant and the terms of vesting shall be as determined by the Compensation Committee, but shall be no less favorable to the Executive than the amounts and terms of the grant approved by the Compensation Committee on December 8, 2006.  All of the stock options granted to Executive shall be “Incentive Stock Options” within the meaning of the Internal Revenue Code of 1986, as amended (the “Code”), subject to the limitations of the Code.  Any stock options which are not allowed to be incentive
stock options under the Code shall be non-qualified stock options.  The stock options shall be issued at the fair market value of the Company’s common stock as of the date of grant.

          5.          Benefits.  During the Employment Period, the Company shall provide or cause to be provided to the Executive such employee benefits as are provided to other executive officers of the Company, including family medical and dental, disability and life insurance, and participation in pension and retirement plans, incentive compensation plans, stock option plans and other benefit plans (collectively, the “Applicable Benefit Plans”).  In lieu of participating in any Applicable Benefit Plan, the Executive may elect to receive from the Company cash in the amount of the lesser of (i) the amount that the Company spends to provide Executive with benefits under such Applicable Benefit Plan and (ii) the amount the Executive spends to obtain benefits that would otherwise be provided to the Executive under such Applicable Benefit
Plan.  During the Employment Period, the Company may provide or cause to be provided to the Executive such additional benefits as the Company may deem appropriate from time to time.  The Company shall also provide the Executive with an annual automobile allowance of not less than $12,000, as well as a life insurance policy in the face amount of $250,000 with Executive’s spouse as the beneficiary. At Executive’s request, the Company shall transfer ownership of such life insurance policy to the Executive or his designee, at such time and in such a manner as to minimize any adverse tax consequences to the Executive.

          6.          Vacation.  The Executive shall be entitled to annual vacations in accordance with the Company’s vacation policies in effect from time to time for executive officers of the Company.

          7.          Term: Employment Period.  The “Employment Period” shall commence on the date of this Agreement (the “Effective Date”) and shall continue for an initial term of three (3) years (the “Initial Term”).  Thereafter, the Employment Period shall continue for successive one (1) year terms (the “Additional Terms”) unless either the Company or the Executive provides written notice of termination of the Employment Period not less than one hundred twenty (120) days prior to the end of the Initial Term or any Additional Term, or unless earlier terminated pursuant to Section 8.  If the Executive shall remain in the full time employ of the Company beyond the Employment Period without any written agreement between the parties, this Agreement shall be deemed to continue on a month to month basis and
either party shall have the right to terminate this Agreement at the end of any ensuing calendar month on written notice of at least thirty (30) days.

          8.          Termination.

                       (a)          Executive’s employment with the company shall be “at will”.  Either the Company or the Executive may terminate this Agreement and Executive’s employment at any time, with or without Cause or Good Reason (as such terms are defined below), in its or his sole discretion, upon thirty (30) days prior written notice of termination.

                       (b)          Without limiting the foregoing Section 8(a), (i) the Executive may terminate his employment with the company at any time for Good Reason, or (ii) the Company may terminate his employment at any time for Cause.  “Good Reason” shall mean (i) the Company’s failure to elect or reelect, or to appoint or reappoint, Executive to the offices of President and Chief Executive Officer of the Company; (ii) material changes by the Company in the Executive’s function, duties or responsibilities (including reporting responsibilities) of a scope less than that associated with the positions of President and Chief Executive Officer of the Company; (iii) Executive’s base salary is reduced by the Company below the highest base salary of Executive in effect
during the Employment Period; (iv) relocation of Executive’s principal place of employment to a place that is not within either the city limits of Tempe, Arizona, or within a radius of ten (10) miles of his primary residence; (v) failure by the Company to obtain the assumption of this Agreement by any successor or assign of the Company; (vi) material breach of this Agreement by the Company, which breach is not cured within five (5) days after written notice thereof is delivered to the Company; or (vii) the occurrence of a Change of Control (as defined in Section 18).  “Cause” shall mean (i) the Executive’s willful, repeated or negligent failure to perform his duties hereunder and to comply with any reasonable or proper direction given by or on behalf of the Company’s Board of Directors and the continuation of such failure following twenty (20) days written notice to such effect, (ii) the Executive being guilty of serious misconduct on the Company’s premises or
elsewhere, whether during the performance of his duties or not, which is reasonably likely to cause material damage to the reputation of the Company or render it materially more difficult for the Executive to satisfactorily continue to perform his duties and the continuation or a second instance of such serious misconduct following twenty (20) days written notice to such effect; (iii) the Executive being found guilty in a criminal court of any offense of a nature which is reasonably likely to materially adversely affect the reputation of the Company or to materially prejudice its interests if the Executive were to continue to be employed by the Company; (iv) the Executive’s commission of any act of fraud or theft involving the Company or its business, or any intentional tort

against the Company; or (v) the Executive’s violation of any of the material terms, covenants, representations or warranties contained in this Agreement and failure to correct such violation within twenty (20) days after written notice by the Company.  Notwithstanding the foregoing, “Cause” shall only be deemed to exist if it is so determined by a resolution duly adopted by the Board of Directors of the Company, at a duly noticed meeting at which the Executive and his counsel are first given the opportunity to address the Board with respect to such determination. 

                       (c)          “Disability” shall mean that the Executive, in the good faith determination of the Board of Directors of the Company, based on the advice of a qualified physician after a proper examination of the Executive, is unable to render services of the character contemplated hereby and that such inability (i) may be expected to be permanent, or (ii) may be expected to continue for a period of at least six (6) consecutive months (or for shorter periods totaling more than six (6) months during any period of twelve (12) consecutive months).  Termination resulting from Disability may only be effected after at least thirty (30) days written notice by the Company of its intention to terminate the Executive’s employment.

                       (d)          “Termination Date” shall mean (i) if this Agreement is terminated on account of death, the date of death; (ii) if this Agreement is terminated for Disability, the date established by the Company pursuant to Section 8(c) hereof; (iii) if this Agreement is terminated by the Company, the date on which a notice of termination is given to the Executive; (iv) if the Agreement is terminated by the Executive, the date the Executive ceases work; or (v) if this Agreement expires by its terms, the last day of the term of this Agreement.  Notwithstanding the foregoing, if within thirty (30) days after any notice of termination is given, the party receiving such notice notifies the other party that a dispute exists concerning the termination, the Termination Date
shall be the date finally determined to be the Termination Date, either by mutual written agreement of the parties or by binding arbitration in the manner provided in Section 23 hereof; provided that the Termination Date shall be extended by a notice of dispute only if such notice is given in good faith and the party giving such notice pursues the resolution of such dispute with reasonable diligence.  Notwithstanding the pendency of any such dispute, the Company will continue to pay the Executive his full compensation in effect when the notice giving rise to the dispute was given and continue the Executive as a participant in all compensation, benefit and insurance plans in which he was participating when the notice giving rise to the dispute was given, until the dispute is finally resolved.  Amounts paid under this Section 8(d) shall be in addition to all other amounts due under this Agreement and shall not be offset against or reduce any amounts due under this Agreement; provided, however,
that if the arbitrator determines that any notice of dispute by the Executive was not given in good faith or that the Executive did not pursue the resolution of such dispute with reasonable diligence, the Executive shall repay the Company the amount of compensation paid to the Executive pursuant to Section 8(d) from the Termination Date which would have applied had such notice of dispute not been given, plus interest thereon at the applicable federal rate provided for in Section 1274(d) of the Internal Revenue Code, or any successor provision thereof, for an obligation with a term equal to the period from the date of payment to the date of repayment pursuant to this Section 8(d).

          9.          Severance:

                       (a)          If (i) the Company terminates the employment of the Executive against his will and without Cause (including by giving notice of termination of the Agreement pursuant to Section 7), or (ii) the Executive terminates his employment for Good Reason, the Executive shall be entitled to receive salary, Incentive Compensation and vacation accrued through the Termination Date, plus the following:  

                                     (i)          an amount equal to two years of Executive’s base salary in effect on the Termination Date;

                                     (ii)          a pro-rated portion of the amount of Incentive Compensation Executive would earn for the fiscal year in which the termination occurs if the results of operations of the Company for the period from the beginning of such fiscal year to the Termination Date were annualized (the “Pro-Rated Incentive Compensation”); and

                                     (iii)          full vesting of all outstanding stock options held by Executive.

The Company shall make the termination payment required hereunder within thirty (30) days of the Termination Date.  Notwithstanding the foregoing, the Company shall not be required to pay any severance pay for any period following the Termination Date if the Executive violates the provisions of Section 15, Section 16 or Section 17 of this Agreement in any material respect, and fails to cure such violation within thirty (30) days after written notice from the Company to the Executive detailing such violation.  

                       (b)          If (i) the Executive voluntarily terminates his employment other than for Good Reason, (ii) the Executive’s employment is terminated due to death or Disability, or (iii) the Executive is terminated by the Company for Cause, then the Executive shall be entitled to receive salary and accrued vacation through the Termination Date only.  In the event of death or Disability the Executive shall also be entitled to receive the Pro-Rated Incentive Compensation and vesting of outstanding stock options as provided in Section 9(a).

                       (c)          In addition to the provisions of Section 9(a) and 9(b) hereof, to the extent COBRA shall be applicable to the Company or as provided by law, the Executive shall be entitled to continuation of group health plan benefits in accordance with COBRA if the Executive makes the appropriate conversion and payments.  If requested to do so, the Company will transfer ownership of the life insurance policy referred to in Section 5 to the Executive and the Executive agrees to pay for any costs related to the transfer in excess of $1000 and to be responsible for all future premiums.

                       (d)          The Executive acknowledges that, upon termination of his employment, he is entitled to no other compensation, severance or other benefits other than those specifically set forth in this Agreement or any applicable Stock Option Agreement, or pursuant to any Applicable Benefit Plan.

          10.        Expenses.  The Company shall pay or reimburse the Executive for all expenses normally reimbursed by Company, reasonably incurred by him in furtherance of his duties hereunder and authorized and approved by the Company in compliance with such rules relating thereto as the Company may, from time to time, adopt and as may be required in order to permit such payments as proper deductions to Company under the Internal Revenue Code of 1986, as amended, and the rule and regulations adopted pursuant thereto now or hereafter in effect.

          11.        Facilities and Services.  The Company shall furnish the Executive with office space, secretarial and support staff and such other facilities and services as shall be reasonably necessary for the performance of his duties under this Agreement.

          12.        Mitigation Not Required.  In the event this Agreement is terminated, the Executive shall not be required to mitigate amounts payable pursuant hereto by seeking other employment or otherwise.  The Executive’s acceptance of any such other employment shall not diminish or impair the amounts payable to the Executive pursuant hereto.

          13.        Place of Performance.  The Executive shall perform his duties primarily in Tempe, Arizona or locations within a reasonable proximity thereof, except for reasonable travel as the performance of the Executive’s duties may require.

          14.        Insurance and Indemnity.  During the Employment Period, if available at reasonable costs, the Company shall maintain, at its expense, officers and directors fiduciary liability insurance covering the Executive and all other executive officers and directors in an amount of no less than $5,000,000.  The Company shall also indemnify the Executive, to the fullest extent permitted by law, from any liability asserted against or incurred by the Executive by reason of the fact that the Executive is or was an officer or director of the Company or any affiliate or related party or is or was serving in any capacity at the request of the Company for any other corporation, partnership, joint venture, trust, employment benefit plan or other enterprise.  This indemnity shall survive termination of this Agreement.

          15.        Noncompetition.

          A.         The Executive agrees that, except in accordance with his duties under this Agreement on behalf of the Company, he will not during the term of this Agreement:

                       Participate in, be employed in any capacity by, serve as director, consultant, agent or representative for, or have any interest, directly or indirectly, in any enterprise which is engaged in the business of distributing, selling or otherwise trading in products or services which are competitive to any products or services distributed, sold or otherwise traded in by the Company or any of its subsidiaries during the term of the Executive’s employment with the Company, or which are competitive to any products or services being actively developed, with the bona fide intent to market same, by the Company or any of its subsidiaries during the term of the Executive’s employment with the Company;

                       In addition, the Executive agrees that for a period of two years after the end of the term of this Agreement (unless the Company breaches this Agreement by failing to pay to the Executive all sums due him under the terms hereof, in which event the following provisions of this Section 15.A shall be inapplicable), the Executive shall observe the covenants set forth in this Section 15 and shall not own, either directly or indirectly or through or in conjunction with one or more members of his or his spouse’s family or through any trust or other contractual arrangement, a greater than five percent (5%) interest in, or otherwise control either directly or indirectly, any partnership, corporation, or other entity which distributes, sells, or otherwise trades in products which are competitive to any products or services being
developed, distributed, sold, or otherwise traded in by the Company or any of its subsidiaries, during the term of this Agreement, or being actively developed by the Company or any of its subsidiaries during the term of this Agreement with the Company with a bona fide intent to market same.  Executive further agrees, for such two-year period following termination, to refrain from directly or indirectly soliciting Company’s vendors, customers or employees, except that the Executive may solicit the Company’s vendors or customers in connection with a business that does not compete with the Company or any of its subsidiaries.

          B.         The Executive hereby agrees that damages and any other remedy available at law would be inadequate to redress or remedy any loss or damage suffered by the Company upon any breach of the terms of this Section 15 by the Executive, and the Executive therefore agrees that the Company, in addition to recovering on any claim for damages or obtaining any other remedy available at law, also may enforce the terms of this section 15 by injunction or specific performance, and may obtain any other appropriate remedy available in equity.

          16.        Assignment of Patents.  Executive shall disclose fully to the Company any and all discoveries and any and all ideas, concepts or inventions relating to the Company’s business as described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission) which he shall conceive or make during his period of employment, or during the period of six months after his employment shall terminate, which are in whole or in part the result of his work with the Company.  Such disclosure is to be made promptly after each such discovery or conception, and each such discovery, idea, concept or invention will become and remain the property of the Company, whether or not patent applications are filed thereon.  Upon request and at the expense of the Company, the Executive shall make application
through the patent solicitors of the Company for letters patent of the United States and any and all other countries at the discretion of the Company on such discoveries, ideas and inventions, and to assign all such applications to the Company, or at its order, forthwith, without additional payment by the Company during his period of employment and for reasonable compensation for time actually spent by the Executive at such work at the request of the Company after the termination of the employment.  Executive shall give the Company, its attorneys and solicitors, all reasonable assistance in preparing and prosecuting such applications and, on request of the Company, execute all papers and do all things that may be reasonably necessary to protect the right of the Company and vest in it or its assigns the discoveries, ideas or inventions, applications and letters patent herein contemplated.  Said cooperation shall also include all actions reasonably necessary to aid the Company in the defense
of its rights in the event of litigation.

          17.        Trade Secrets.

          A.         In the course of the term of this Agreement, it is anticipated that the Executive shall have access to secret or confidential technical and commercial information, records, data, specifications, systems, methods, plans, policies, inventions, material and other knowledge (“Confidential Material”) owned by the Company and its subsidiaries.  The Executive recognizes and acknowledges that included within the Confidential Material are the Company’s confidential commercial information, technology, methods of manufacture, designs, and any computer programs, source codes, object codes, executable codes and related materials, all as they may exist from time to time, and that they are valuable special and unique aspects of the Company’s business.  All such Confidential material shall be and remain the property of the
Company.  Except as required by his duties to the Company, the Executive shall not, directly or indirectly, either during the term of his employment or at any time thereafter, disclose or disseminate to anyone or make use of, for any purpose whatsoever, any Confidential Material.  Upon termination of his employment, the Executive shall promptly deliver to the Company all Confidential Material (including all copies thereof, whether prepared by the Executive or others) which are in the possession or under the control of the Executive.  The Executive shall not be deemed to have breached this Section 17 if the Executive shall be specifically compelled by lawful order of any judicial, legislative, or administrative authority or body to disclose any Confidential Material or else face civil or criminal penalty or sanction.

          B.         The Executive hereby agrees that damages and any other remedy available at law would be inadequate to redress or remedy any loss or damage suffered by the Company upon any breach of the terms of this Section 17 by the Executive, and the Executive therefore agrees that the Company, in addition to recovering on any claim for damages or obtaining any other remedy available at law, also may enforce the terms of this Section 17 by injunction or specific performance, and may obtain any other appropriate remedy available in equity.

          18.        Provisions After Change of Control.

                       (a)         In the event Executive’s employment with the Company is terminated (other than as a consequence of death or Disability) either (x) by the Company for any reason other than for Cause during a Pending Change of Control (as hereinafter defined) or within one year following the occurrence of a Change of Control, or (y) by Executive for Good Reason within one year following the occurrence of a Change of Control, then Executive shall be entitled to receive from the Company, in lieu of the severance payment otherwise payable pursuant to Section 9(a), the following:

                                     (i)          an amount equal to three years of Executive’s base salary in effect on the Termination Date;

                                     (ii)         the maximum amount of the Incentive Compensation which Executive could earn for the fiscal year in which the Termination Date occurs; and 

                                     (iii)       full vesting of all outstanding stock options held by Executive.

The Company shall make the termination payments required hereunder within ten (10) days of the Termination Date.

                       (b)         For purposes of this Agreement, the term “Change of Control” shall mean:

                                     (i)          The acquisition, other than from the Company, by any individual, entity or group (within the meaning of Rule 13d-3 promulgated under the Exchange Act or any successor provision) (any of the foregoing described in this Section 18 (b)(i) hereafter a “Person”) of 20% or more of either (a) the then outstanding shares of Capital Stock of the Company (the “Outstanding Capital Stock”) or (b) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Voting Securities”), provided, however, that any acquisition by (x) the Company or any of its subsidiaries, or any employee
benefit plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries or (y) any Person that is eligible, pursuant to Rule 13d-1 (b) under the Exchange Act, to file a statement on Schedule 13G with respect to its beneficial ownership of Voting Securities, whether or not such Person shall have filed a statement on Schedule 13G, unless such Person shall have filed a statement on Schedule 13D with respect to beneficial ownership of 35% or more of the Voting Securities or (z) any corporation with respect to which, following such acquisition, more than 60%

respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Capital Stock and Voting Securities immediately prior to such acquisition in substantially the same proportion as their ownership, immediately prior to such acquisition, of the Outstanding Capital Stock and Voting Securities, as the case may be, shall not constitute a Change of Control; or

                                     (ii)         Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any individual becoming a director subsequent to the date hereof whose election or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the
Directors of the Company (as such terms are used in Rule 14a-11 of Regulation 14A, or any successor section, promulgated under the Exchange Act); or

                                     (iii)        Approval by the shareholders of the Company of a reorganization, merger or consolidation (a “Business Combination”), in each case, with respect to which all or substantially all holders of the Outstanding Capital Stock and Voting Securities immediately prior to such Business Combination do not, following such Business Combination, beneficially own, directly or indirectly, more than 60% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from the Business Combination; or

                                     (iv)        (a) a complete liquidation or dissolution of the Company or (b) a sale or other disposition of all or substantially all of the assets of the Company other than to a corporation with respect to which, following such sale or disposition, more than 60% of respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors is then owned beneficially, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Capital Stock and Voting Securities immediately prior to such sale or disposition in
substantially the same proportion as their ownership of the Outstanding Capital Stock and Voting Securities, as the case may be, immediately prior to such sale or disposition.

                                     (v)         The first purchase under a tender offer or exchange offer for 20% or more of the outstanding shares of stock (or securities convertible into stock) of the Company, other than an offer by the Company or any of its subsidiaries or any employee benefit plan sponsored by the Company or any of its subsidiaries.

                       (c) For purposes of this Agreement, the term “Pending Change of Control” shall mean the occurrence of one of the following events as the result of which a Change in Control pursuant thereto is reasonably expected within ninety (90) days after the date of determination as to whether there is a Pending Change in Control: (i) the Company executes a letter of intent, term sheet or similar instrument with respect to a transaction or series of transactions, the consummation of which would result in a Change of Control; (ii) the Board approves a transaction or series of transactions, the consummation of which would result in a Change of Control; (iii) a Person makes a public announcement of a tender offer for the Common Stock of the Company, the consummation of which would result in a Change of Control; or (iv) a Person makes
a public announcement of, or makes a public filing with respect to, the intention of that Person to seek to change the membership of the Board of Directors of the Company in a manner that would result in a Change of Control.  A Pending Change of Control shall cease to exist upon a Change of Control.

          19.          Notices.  Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and if sent by registered or certified mail, return receipt requested to his residence in the case of the Executive, or to its principal office in the case of the Company, or to such other addresses as they may respectively designate in writing.

          20.          Entire Agreement; Waiver.  This Agreement contains the entire understanding of the parties and may not be changed orally but only by an agreement in writing, signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.  Waiver of or failure to exercise any rights provided by this Agreement in any respect shall not be deemed a waiver of any further or future rights.

          21.          Binding Effect; Assignment.  The rights and obligations of this Agreement shall bind and inure to the benefit of any successor of the Company by reorganization, merger or consolidation, or any assignee of all or substantially all of the Company’s business or properties.  The Executive’s rights hereunder are personal to and shall not be transferable nor assignable by the Executive.

          22.          Headings.  The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

          23.          Governing Law; Arbitration.  This Agreement shall be construed in accordance with and governed for all purposes by the laws and public policy of the State of Arizona applicable to contracts executed and to be wholly performed within such state.  Any dispute or controversy arising out of or relating to this Agreement shall be settled by arbitration in accordance with the rules of the American Arbitration Association and judgment upon the award may be entered in any court having jurisdiction thereover.  The arbitration shall be held in Maricopa County or in such other place as the parties hereto may agree.

          24.          Further Assurances.  Each of the parties agrees to execute, acknowledge, deliver and perform, and cause to be executed, acknowledged, delivered and performed, at any time and from time to time, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and/or assurances as may be necessary or proper to carry out the provisions or intent of this Agreement.

          25.          Severability.  The parties agree that if any one or more of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

          26.          Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.

          IN WITNESS WHEREOF, AMTECH SYSTEMS, INC. has caused by instrument to be signed by a duly authorized officer and the Executive has hereunto set his hand the day and year first above written.

AMTECH SYSTEMS, INC.

	
  
By
  	
  
 
  	
  
/s/ Bradley   C. Anderson
  	
  
 
  	
  
/s/ Jong S.   Whang
  
	
   
  	
   
  	
  

  	
   
  	
  

  
	
   
  	
   
  	
  Bradley C.   Anderson
  	
   
  	
  Jong S.   Whang
  
	
   
  	
   
  	
  Vice   President and Chief Financial OfficerForm of Preferred Stock OIffering Warrant

    FORM
      OF WARRANT

    (Preferred
      Stock Offering)

    THIS
      WARRANT AND THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THESE SECURITIES HAVE
      BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
      THE
      DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
      TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT
      AS TO
      THESE SECURITIES OR (2) THERE IS AN OPINION OF COUNSEL, SATISFACTORY TO THE
      CORPORATION, THAT AN EXEMPTION THEREFROM IS AVAILABLE.

     

    H2DIESEL
      HOLDINGS, INC. 

    WARRANT

    TO
      PURCHASE COMMON STOCK

    

    Issue
      Date: ___________
      __, 2007

     

    THIS
      WARRANT IS TO CERTIFY THAT,
      _____________ (the “Purchaser”),
      is
      entitled to purchase from H2Diesel Holdings, Inc., a Florida corporation (the
      “Company”),
      ________ shares [NOTE:
      NUMBER OF SHARES SHALL EQUAL 50% OF THE NUMBER OF SHARES OF COMMON STOCK INTO
      WHICH THE PREFERRED SHARES PURCHASED ARE INITIALLY
      CONVERTIBLE]
      of the
      Company’s common stock, par value $.001 per share (the “Common
      Stock”),
      at
      the Exercise Price.

     

    Section
      1. Certain
      Definitions.

     

    As
      used
      in this Warrant, unless the context otherwise requires:

     

    “Exercise
      Price”
shall
      mean $6.00 per share, as adjusted from time to time pursuant to Section
      3
      hereof.

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    “Warrant”
shall
      mean this Warrant and all additional or new warrants issued upon division or
      combination of, or in substitution for, this Warrant. All such additional or
      new
      warrants shall at all times be identical as to terms and conditions and date,
      except as to the number of shares of Warrant Stock for which they may be
      exercised.

     

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    “Warrantholder”
shall
      mean the Purchaser, as the initial holder of this Warrant, and its nominees,
      successors or assigns, including any subsequent holder of this Warrant to whom
      it has been legally transferred.

     

    “Warrant
      Stock”
shall
      mean the shares of the Company’s Common Stock purchasable by the holder of this
      Warrant upon the exercise of this Warrant.

     

    Section
      2. Exercise
      of Warrant.

     

    (a) At
      any
      time after the Issue Date but prior to the fifth anniversary of the Issue Date
      (the “Expiration
      Date”),
      the
      Purchaser may at any time and from time to time exercise this Warrant, in whole
      or in part.

     

    (b) (i) The
      Warrantholder shall exercise this Warrant by means of delivering to the Company
      at its office identified in Section
      14
      hereof
      (i) a written notice of exercise, including the number of shares of Warrant
      Stock to be delivered pursuant to such exercise, (ii) this Warrant and (iii)
      payment equal to the Exercise Price in accordance with Section
      2(b)(ii).
      In the
      event that any exercise shall not be for all shares of Warrant Stock purchasable
      hereunder, a new Warrant registered in the name of the Warrantholder, of like
      tenor to this Warrant and for the remaining shares of Warrant Stock purchasable
      hereunder, shall be delivered to the Warrantholder within ten (10) days after
      any such exercise. Such notice of exercise shall be in the Subscription Form
      set
      out at the end of this Warrant.

     

    (ii) The
      Warrantholder shall pay the Exercise Price to the Company either by cash,
      certified check to the order of the Company or wire transfer to an account
      specified by the Company. At any time following the first anniversary of the
      Issue Date and provided that the Warrant Stock is not then registered for resale
      pursuant to an effective registration statement under the Securities Act, then,
      in addition to the method of payment set forth in the immediately preceding
      sentence and in lieu of any cash payment required thereby, this Warrant may
      also
      be exercised at such time by means of a “cashless exercise” in which the
      Warrantholder shall be entitled to receive a certificate for the number of
      Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
      where:

     

    (A)
      = the
      Market Price (as defined below);

     

    (B)
      = the
      Exercise Price of this Warrant, as adjusted from time to time; and 

     

    (X)
      = the
      number of shares of Warrant Stock issuable upon exercise of this Warrant in
      accordance with the terms of this Warrant by means of a cash exercise rather
      than a cashless exercise.

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    Solely
      for the purposes of this paragraph, Market Price shall be calculated as of
      the
      Trading Day (defined for this purpose as any day on which the equity securities
      markets are generally open for trading) immediately preceding the date which
      the
      subscription form attached hereto is deemed to have been sent to the Company
      pursuant to Section
      14
      hereof
      (such preceding date, the “Valuation
      Date”).
      As
      used herein, the phrase “Market
      Price”
shall
      mean (i) if the Warrant Stock is listed or admitted for trading on a
      national securities exchange, an automated quotation system or the Over the
      Counter Bulletin Board, the last reported sale price per share of the Warrant
      Stock on the Valuation Date, or, in case no such reported sale takes place
      on
      such day or is reported, then the average of the last reported per share bid
      and
      ask prices for shares of the Warrant Stock on such date (or if such bid and
      ask
      prices ore not available on such date, the most recent preceding date), in
      either case as officially reported by such securities exchange, quotation system
      or Bulletin Board on which the Common Stock is listed or admitted to trading,
      (ii) if not so listed or admitted for trading, the fair market value of a
      share of the Warrant Stock as determined by the Company’s board of directors in
      good faith, or (iii) if such exercise is in connection with a merger or
      consolidation of the Company in which the Company is not the survivor or in
      which the Warrant Stock is exchanged for cash or other securities or a sale
      of
      all or substantially all of the assets of the Company (collectively, a
“Sale”),
      the
      implied price per share of the Warrant Stock resulting from such
      Sale.

     

    (c) Upon
      exercise
      of this
      Warrant and delivery of the Subscription Form with proper payment relating
      thereto, the Company shall cause to be executed and delivered to the
      Warrantholder a certificate or certificates representing the aggregate number
      of
      fully-paid and nonassessable shares of Warrant Stock issuable upon such
      exercise.

     

    (d) The
      stock
      certificate or certificates for Warrant Stock to be delivered in accordance
      with
      this Section
      2
      shall be
      in such denominations as may be specified in said notice of exercise and shall
      be
      registered in the name of the Warrantholder or such other name or names as
      shall
      be designated in said notice. Such certificate or certificates shall be deemed
      to have been issued and the Warrantholder or any other person so designated
      to
      be named therein shall be deemed to have become the holder of record of such
      shares, including to the extent permitted by law the right to vote such shares
      or to consent or to receive notice as stockholders, as of the time said notice
      is delivered to the Company as aforesaid.

     

    (e) The
      Company shall pay all expenses payable in connection with the preparation,
      issue
      and delivery of stock certificates under this Section
      2;
      provided,
      however,
      that
      the Warrantholder shall be responsible for all transfer taxes resulting from
      the
      fact
      that
      any certificate issued in respect of Warrant Stock is not in the name of the
      Warrantholder. 

     

    (f) All
      shares of Warrant Stock issuable upon the exercise of this Warrant in accordance
      with the terms hereof shall be validly issued, fully paid and nonassessable,
      and
      free from all
      liens
      and other encumbrances thereon, other than liens or other encumbrances created
      by the Warrantholder or restrictions upon transfer under federal or state
      securities laws.

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

     

    (g) In
      no
      event shall any fractional share of Warrant Stock
      of the
      Company be issued upon any exercise of this Warrant. If, upon any exercise
      of
      this Warrant, the Warrantholder would, except as provided in this paragraph,
      be
      entitled to receive a fractional share of Warrant Stock, then the Company shall
      either (a) deliver in cash to such holder an amount equal to such fractional
      interest, or (b) issue a full share in lieu of such fractional
      share.

     

    Section
      3. Adjustment
      of Exercise Price and Warrant Stock.

     

    (a) If,
      at
      any time prior to the Expiration Date, the number of outstanding
      shares
      of Common Stock is (i) increased by a stock dividend payable in shares of
      Warrant Stock or by a subdivision or split-up of shares of Common Stock, or
      (ii)
      decreased by a combination of shares of Common Stock, then, following the record
      date fixed for the determination of holders of Common Stock entitled to receive
      the benefits of such stock dividend, subdivision, split-up, or combination,
      the
      Exercise Price shall be adjusted to a new amount equal to the product of (A)
      the
      Exercise Price in effect on such record date, and (B) the quotient obtained
      by
      dividing (x) the number of shares of Warrant Stock into which this Warrant
      would
      be exercisable on such record date (without giving effect to the event referred
      to in the foregoing clause (i) or (ii)), by (y) the number of shares of Warrant
      Stock which would be outstanding immediately after the event referred to in
      the
      foregoing clause (i) or (ii), if this Warrant had been exercised immediately
      prior to such record date.

     

    (b) Upon
      each
      adjustment of the Exercise Price as provided in Section
      3(a),
      the
      Warrantholder shall thereafter be entitled to subscribe for and purchase, at
      the
      Exercise Price
      resulting from such adjustment, the number of shares of Warrant Stock equal
      to
      the product of (i) the number of shares of Warrant Stock into which this Warrant
      would be exercisable prior to such adjustment and (ii) the quotient obtained
      by
      dividing (A) the Exercise Price existing prior to such adjustment by (B) the
      new
      Exercise Price resulting from such adjustment.

     

    Section
      4. Division
      and Combination.

     

    This
      Warrant may be divided or combined with other Warrants upon presentation at
      the
      aforesaid office of the Company, together with a written notice specifying
      the
      names and denominations in which new Warrants are to be issued, signed by the
      Warrantholder or its agent or attorney. The Company shall pay all expenses
      in
      connection with the preparation, issue and delivery of Warrants under this
      Section
      4.
      The
      Company agrees to maintain at its aforesaid office books for the registration
      of
      the Warrants.

     

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    Section
      5. Reclassification,
      Etc.

     

    In
      case
      of any reclassification or change of the outstanding Warrant Stock of the
      Company (other than as a result of a subdivision, combination or stock
      dividend), or in case of any consolidation of the Company with, or merger of
      the
      Company into, another corporation or other business organization (other than
      a
      consolidation or merger in which the Company is the continuing corporation
      and
      which does not result in any reclassification or change of the outstanding
      Common Stock of the Company) at any time prior to the Expiration Date, then,
      as
      a condition of such reclassification, reorganization, change, consolidation
      or
      merger, lawful provision shall be made, and duly executed documents evidencing
      the same from the Company or its successor shall be delivered to the
      Warrantholder, so that the Warrantholder shall have the right prior to the
      Expiration Date to purchase, at a total price not to exceed that payable upon
      the exercise of this Warrant, the kind and amount of shares of stock and other
      securities and property receivable upon such reclassification, reorganization,
      change, consolidation or merger by a holder of the number of shares of Warrant
      Stock of the Company which might have been purchased by the Warrantholder
      immediately prior to such reclassification, reorganization, change,
      consolidation or merger, and in any such case appropriate provisions shall
      be
      made with respect to the rights and interest of the Warrantholder to the end
      that the provisions hereof (including provisions for the adjustment of the
      Exercise Price and of the number of shares purchasable upon exercise of this
      Warrant) shall thereafter be applicable in relation to any shares of stock
      and
      other securities and property thereafter deliverable upon exercise
      hereof.

     

    Section
      6. Reservation
      and Authorization of Capital Stock.

     

    The
      Company shall, at all times on and after the date hereof, reserve and keep
      available for issuance such number of its authorized but unissued shares of
      Common Stock as will be sufficient to permit the exercise in full of all
      outstanding Warrants.

     

    Section
      7. Rights
      of
      Stockholders.

     

    Nothing
      contained herein be construed to confer upon the holder of this Warrant, as
      such, any of the rights of a stockholder of the Company or any right to vote
      for
      the election of directors or upon any matter submitted to stockholders at any
      meeting thereof, or to give or withhold consent to any corporate action (whether
      upon any recapitalization, issuance of stock, reclassification of stock, change
      of par value or change of stock to no par value, consolidation, merger,
      conveyance, or otherwise) or to receive notice of meetings, or to receive
      dividends or subscription rights or otherwise until the Warrant shall have
      been
      exercised and the certificates representing the Warrant Stock shall have been
      issued, as provided herein.

     

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    Section
      8. Stock
      and
      Warrant Books.

     

    The
      Company will not at any time, except upon dissolution, liquidation or winding
      up, close its stock books or warrant books so as to result in preventing or
      delaying the exercise of any Warrant.

     

    Section
      9. Limitation
      of Liability.

     

    No
      provisions hereof, in the absence of affirmative action by the Warrantholder
      to
      purchase Warrant Stock hereunder, shall give rise to any liability of the
      Warrantholder to pay the Exercise Price or as a stockholder of the Company
      (whether such liability is asserted by the Company or creditors of the
      Company).

     

    Section
      10. Transfer

     

    This
      Warrant may be transferred only upon the written consent of the Company, which
      approval shall not be unreasonably withheld or delayed. Any Warrants issued
      upon
      the transfer of this Warrant shall be numbered and shall be registered in a
      Warrant Register as they are issued. The Company shall be entitled to treat
      the
      registered holder of any Warrant on the Warrant Register as the owner in fact
      thereof for all purposes and shall not be bound to recognize any equitable
      or
      other claim to, or interest in, such Warrant on the part of any other person,
      and shall not be liable for any registration of transfer of Warrants that are
      registered or to be registered in the name of a fiduciary or the nominee of
      a
      fiduciary unless made with the actual knowledge that a fiduciary or nominee
      is
      committing a breach of trust in requesting such registration or transfer, or
      with the knowledge of such facts that its participation therein amounts to
      bad
      faith. This Warrant shall be transferable only on the books of the Company
      upon
      delivery thereof duly endorsed by the Holder or by his duly authorized attorney
      or representative, or accompanied by proper evidence of succession, assignment,
      or authority to transfer. In all cases of transfer by an attorney, executor,
      administrator, guardian, or other legal representative, duly authenticated
      evidence of his or its authority shall be produced. Upon any registration of
      transfer, the Company shall deliver a new Warrant or Warrants to the person
      entitled thereto. This Warrant may be exchanged, at the option of the Holder
      thereof, for another Warrant, or other Warrants of different denominations,
      of
      like tenor and representing in the aggregate a like amount, upon surrender
      to
      the Company or its duly authorized agent. Notwithstanding the foregoing, the
      Company shall have no obligation to cause Warrants to be transferred on its
      books to any person if, in the opinion of counsel to the Company, such transfer
      does not comply with the provisions of the Securities Act and the rules and
      regulations thereunder.

     

    Section
      11. Investment
      Representations; Restrictions on Warrant Stock.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

     

    Unless
      a
      current registration statement under the Securities Act shall be in effect
      with
      respect to the Warrant Stock to be issued upon exercise of this Warrant, the
      Warrantholder, by accepting this Warrant, covenants and agrees that, at the
      time
      of exercise hereof, and at the time of any proposed transfer of Warrant Stock
      acquired upon exercise hereof, such Warrantholder will deliver to the Company
      a
      written statement that the securities acquired by the Warrantholder upon
      exercise hereof are for the account of the Warrantholder or are being held
      by
      the Warrantholder as trustee, investment manager, investment advisor or as
      any
      other fiduciary for the account of the beneficial owner or owners for investment
      and are not acquired with a view to, or for sale in connection with, any
      distribution thereof (or any portion thereof) and with no present intention
      (at
      any such time) of offering and distributing such securities (or any portion
      thereof). The Warrantholder agrees that certificates representing Warrant Stock
      may bear a legend substantially as follows:

     

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THESE SECURITIES HAVE BEEN
      ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
      DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
      TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT
      AS TO
      THESE SECURITIES OR (2) THERE IS AN OPINION OF COUNSEL, SATISFACTORY TO THE
      CORPORATION, THAT AN EXEMPTION THEREFROM IS AVAILABLE.

     

    The
      Company agrees to include the Warrant Stock in the Company’s registration
      statement to be filed with the Securities and Exchange Commission pursuant
      to,
      and subject to the terms and conditions of, the Registration Rights Agreement
      dated ___________, 2007, among the Company, Purchaser and the other stockholders
      of the Company named therein (the “Registration
      Rights Agreement”).

     

    Section
      12. Loss,
      Destruction of Warrant Certificates.

     

    Upon
      receipt of evidence satisfactory to the Company of the loss, theft, destruction
      or mutilation of any warrant and, in the case of any such loss, theft or
      destruction, upon receipt of indemnity and/or security satisfactory to the
      Company or, in the case of any such mutilation, upon surrender and cancellation
      of such Warrant, the Company will make and deliver, in lieu of such lost,
      stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
      representing the right to purchase the same aggregate number of shares of
      Warrant Stock.

     

     

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

     

    Section
      13. Amendments.

     

    The
      terms
      of this Warrant may be amended, and the observance of any term herein may be
      waived, but only with the written consent of the Company and the
      Warrantholder.

     

    Section
      14. Notices
      Generally.

     

    Any
      notice, request, consent, other communication or delivery pursuant to the
      provisions hereof shall be in writing and shall be sent by one of the following
      means: (i) by registered or certified first class mail, postage prepaid, return
      receipt requested; (ii) by facsimile transmission with confirmation of receipt;
      (iii) by overnight courier service; or (iv) by personal delivery, and shall
      be
      properly addressed to the Warrantholder at the last known address or facsimile
      number appearing on the books of the Company, or, except as herein otherwise
      expressly provided, to the Company at its principal executive office at H2Diesel
      Holdings, Inc., 11111 Katy Freeway, Suite 910, Houston, Texas 77079, (Fax:
      (713)
      973-5777), Attention: Chief Executive Officer and
      an
      additional copy to Ira N. Rosner, Greenberg Traurig, P.A., 1221 Brickell Avenue,
      Miami, Florida 33131 (fax: (305) 579-0717),
      or such
      other address or facsimile number as shall have been furnished to the party
      giving or making such notice, demand or delivery.

     

    Section
      15. Successors
      and Assigns.

     

    This
      Warrant shall bind and inure to the benefit of and be enforceable by the parties
      hereto and their respective permitted successors and assigns.

     

    Section
      16. Governing
      Law.

     

    In
      all
      respects, including all matters of construction, validity and performance,
      this
      Warrant and the obligations arising hereunder shall be governed by, and
      construed and enforced in accordance with, the laws of the State of Florida
      applicable to contracts made and performed in such State.

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed in its name by its duly authorized
      officer.

     

    Dated:     

     

    H2DIESEL
      HOLDINGS, INC.

     

    

     

    By: _______________________________________________________________    

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    SUBSCRIPTION
      FORM

     

    (to
      be
      executed only upon exercise of Warrant)

     

    To:      H2Diesel
      Holdings, Inc.

    11111
      Katy Freeway, Suite 910

    Houston,
      Texas 77079

    Attn:
      David A. Gillespie

    

    or
      such
      other address notified by the Company to the Holder.

     

    (1)  The
      undersigned hereby elects to purchase ________ shares of Warrant Stock of the
      Company pursuant to the terms of the attached Warrant, and tenders herewith
      payment of the exercise price in full, together with all applicable transfer
      taxes, if any.

     

    (2)  Payment
      shall take the form of (check applicable box):

     

    [
      ] in
      lawful money of the United States; or

     

    [
      ] the
      cancellation of such number of shares of Warrant Stock as is necessary, in
      accordance with the formula set forth in subsection 2(b), to exercise this
      Warrant with respect to the shares of Warrant Stock set forth above pursuant
      to
      the cashless exercise procedure set forth in subsection 2(b).

     

    (3)  Please
      issue a certificate or certificates representing said shares of Warrant Stock
      in
      the name of the undersigned or in such other name as is specified
      below:

     

    _______________________________

     

    

    The
      shares of Warrant Stock shall be delivered to the following:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      ________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________    

    Name
      of
      Authorized Signatory:
      ___________________________________________________________________ 

    Title
      of
      Authorized Signatory:
      ____________________________________________________________________ 

    Date:
            

    

    

    -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]