Document:

Exhibit 10.1

 

 

 

STOCK PURCHASE AGREEMENT

 

BY AND BETWEEN

 

AVIZA TECHNOLOGY, INC.

 

AND

 

CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC

 

APRIL 24, 2006

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 1.

  	
  Defined Terms

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 2.

  	
  Agreement to Sell and Purchase
  the Shares

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 3.

  	
  Closing

  	
  2

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Company’s Closing Conditions

  	
  3

  
	
  3.2

  	
  Investor’s Closing Conditions

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 4.

  	
  Representations and Warranties
  of the Company

  	
  4

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Organization, Good Standing and
  Qualification

  	
  4

  
	
  4.2

  	
  Subsidiaries

  	
  4

  
	
  4.3

  	
  Due Authorization

  	
  5

  
	
  4.4

  	
  Non-Contravention

  	
  5

  
	
  4.5

  	
  Governmental Consents

  	
  5

  
	
  4.6

  	
  Reporting Status

  	
  5

  
	
  4.7

  	
  Capitalization.

  	
  6

  
	
  4.8

  	
  Legal Proceedings

  	
  7

  
	
  4.9

  	
  No Violations.

  	
  7

  
	
  4.10

  	
  Governmental Permits, Etc.

  	
  8

  
	
  4.11

  	
  Intellectual Property

  	
  8

  
	
  4.12

  	
  Financial Statements

  	
  8

  
	
  4.13

  	
  No Material Adverse Change

  	
  9

  
	
  4.14

  	
  NASDAQ Listing

  	
  9

  
	
  4.15

  	
  Listing of the Securities

  	
  9

  
	
  4.16

  	
  No Manipulation of Stock

  	
  10

  
	
  4.17

  	
  Insurance

  	
  10

  
	
  4.18

  	
  Tax Matters

  	
  10

  
	
  4.19

  	
  Investment Company

  	
  10

  
	
  4.20

  	
  No Registration

  	
  10

  
	
  4.21

  	
  Internal Accounting Controls

  	
  10

  
	
  4.22

  	
  Form D; General Solicitation

  	
  10

  
	
  4.23

  	
  Use of Proceeds

  	
  11

  
	
  4.24

  	
  Integration

  	
  11

  
	
  4.25

  	
  Questionable Payments

  	
  11

  
	
  4.26

  	
  Transactions with Affiliates

  	
  11

  
	
  4.27

  	
  Broker’s Fees

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 5.

  	
  Representations and Warranties
  of the Investor

  	
  11

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Due Authorization

  	
  11

  
	
  5.2

  	
  Accredited Investor.

  	
  12

  
	
  5.3

  	
  Acknowledgement Regarding Offering of the
  Shares

  	
  12

  

 

i

 

	
  5.4

  	
  Broker Fees

  	
  12

  
	
  5.5

  	
  Canadian Addendum

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 6.

  	
  Survival of Representations and
  Warranties

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 7.

  	
  Registration of the Shares;
  Compliance with the Securities Act

  	
  13

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Registration Procedures and Expenses

  	
  13

  
	
  7.2

  	
  Delay in Effectiveness of Registration
  Statement

  	
  15

  
	
  7.3

  	
  Transfer of Shares; Suspension

  	
  15

  
	
  7.4

  	
  Indemnification

  	
  17

  
	
  7.5

  	
  Termination of Conditions and Obligations

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 8.

  	
  Company Covenants

  	
  21

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Rule 144

  	
  21

  
	
  8.2

  	
  Observation of Meetings of the Board of
  Directors

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 9.

  	
  Investor Covenants.

  	
  22

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Transfer Restrictions

  	
  22

  
	
  9.2

  	
  Standstill Provision

  	
  22

  
	
  9.3

  	
  Right of First Refusal.

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 10.

  	
  Miscellaneous

  	
  24

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Legends

  	
  24

  
	
  10.2

  	
  Notices

  	
  25

  
	
  10.3

  	
  Amendments and Waivers

  	
  26

  
	
  10.4

  	
  Headings

  	
  26

  
	
  10.5

  	
  Severability

  	
  26

  
	
  10.6

  	
  Governing Law

  	
  27

  
	
  10.7

  	
  Entire Agreement

  	
  27

  
	
  10.8

  	
  Counterparts

  	
  27

  
	
  10.9

  	
  Successors and Assigns

  	
  27

  
	
  10.10

  	
  Expenses

  	
  27

  
	
  10.11

  	
  Arbitration.

  	
  28

  

 

Exhibits

 

	
  Exhibit A

  	
  Form of
  Officer’s Certificate

  	
   

  
	
  Exhibit B

  	
  Form of
  Legal Opinion

  	
   

  
	
  Exhibit C

  	
  Form of
  Secretary’s Certificate

  	
   

  
	
  Exhibit D

  	
  Schedule of
  Exceptions

  	
   

  
	
  Exhibit E

  	
  Form of
  Certificate of Subsequent Sale

  	
   

  
	
  Exhibit F

  	
  Restricted
  Parties

  	
   

  

 

Canadian
Addendum

 

ii

 

THIS STOCK
PURCHASE AGREEMENT, dated as of April 24, 2006
(this “Agreement”), is entered into
by and between Aviza Technology, Inc., a Delaware corporation (the “Company”), and Caisse de dépôt et
placement du Québec, a body organized under the laws of the Province of Québec
(the “Investor”).

 

RECITALS

 

A.                                   The
Company and the Investor are executing and delivering this Agreement in
reliance upon the exemption from securities registration afforded by the
provisions of Section 4(2) of the Securities Act of 1933, as amended
(the “Securities Act”), and
Regulation D, as promulgated by the Securities and Exchange Commission (the “SEC”) under the Securities Act;

 

B.                                     The
Investor wishes to purchase from the Company, and the Company wishes to sell
and issue to the Investor, upon the terms and subject to the conditions set
forth in this Agreement, an aggregate of 3,282,275 newly issued shares (the “Shares”) of the Company’s common
stock, par value $0.0001 per share (the “Common Stock”),
for an aggregate purchase price of fifteen million dollars ($15,000,000) (the “Purchase Price”); and

 

C.                                     This
Agreement shall be binding upon the Company and the Investor only upon mutual delivery
of a duly signed and executed signature page hereto by the Company and by the
Investor.

 

AGREEMENT

 

In
consideration of the foregoing, the respective representations, warranties,
covenants and agreements set forth in this Agreement and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound hereby, agree as
follows:

 

Section 1.                                            Defined
Terms. The following terms are defined in this Agreement, as indicated
below: 

 

	
  “AAA”

  	
   

  	
  Section 10.11(b)

  
	
  “Agreement”

  	
   

  	
  Preamble

  
	
  “Board”

  	
   

  	
  Section 8.2

  
	
  “Closing”

  	
   

  	
  Section 3

  
	
  “Closing Date”

  	
   

  	
  Section 3

  
	
  “Common Stock”

  	
   

  	
  Recitals

  
	
  “Company”

  	
   

  	
  Preamble

  
	
  “Confidentiality Agreement”

  	
   

  	
  Section 10.7

  
	
  “Dispute”

  	
   

  	
  Section 10.11(a)

  
	
  “Evaluation Date”

  	
   

  	
  Section 4.9(c)

  
	
  “Exchange Act”

  	
   

  	
  Section 4.6

  
	
  “Form S-4”

  	
   

  	
  Section 4.7(g)

  
	
  “Intellectual Property”

  	
   

  	
  Section 4.11

  

 

 

	
  “Investor”

  	
   

  	
  Preamble

  
	
  “Investor Indemnitees”

  	
   

  	
  Section 7.4(a)

  
	
  “Liquidated Damages Payment”

  	
   

  	
  Section 7.2(a)(i)

  
	
  “Material Contract”

  	
   

  	
  Section 4.4

  
	
  “Material Permits”

  	
   

  	
  Section 4.10

  
	
  “NASD”

  	
   

  	
  Section 4.13(e)

  
	
  “Notice of Sale”

  	
   

  	
  Section 9.3(a)

  
	
  “Observer”

  	
   

  	
  Section 8.2

  
	
  “Offered Shares”

  	
   

  	
  Section 9.3(a)

  
	
  “Permitted Transferee”

  	
   

  	
  Section 10.9

  
	
  “Person”

  	
   

  	
  Section 4.22

  
	
  “Preferred Stock”

  	
   

  	
  Section 4.7(a)

  
	
  “Prospectus”

  	
   

  	
  Section 7.4(a)(i)

  
	
  “Purchase Offer”

  	
   

  	
  Section 9.3(a)

  
	
  “Purchase Price”

  	
   

  	
  Recitals

  
	
  “Registration Demand”

  	
   

  	
  Section 7.1

  
	
  “Registration Demand Date”

  	
   

  	
  Section 7.1

  
	
  “Registration Period”

  	
   

  	
  Section 7.1(c)

  
	
  “Registration Statement”

  	
   

  	
  Section 7.1(a)

  
	
  “Registration Termination Date”

  	
   

  	
  Section 7.1(c)

  
	
  “Reply Notice”

  	
   

  	
  Section 9.3(b)

  
	
  “Representative”

  	
   

  	
  Section 10.11(a)

  
	
  “Restricted Party”

  	
   

  	
  Section 9.3(a)

  
	
  “Schedule of Exceptions”

  	
   

  	
  Section 4

  
	
  “SEC”

  	
   

  	
  Recitals

  
	
  “SEC Documents”

  	
   

  	
  Section 4.6

  
	
  “Securities Act”

  	
   

  	
  Recitals

  
	
  “Shares”

  	
   

  	
  Recitals

  
	
  “Subsidiary”

  	
   

  	
  Section 4.1

  
	
  “Suspension”

  	
   

  	
  Section 7.3(c)

  
	
  “Suspension Notice”

  	
   

  	
  Section 7.3(c)

  
	
  “VPVP”

  	
   

  	
  Section 7.1

  

 

Section 2.                                            Agreement
to Sell and Purchase the Shares. Upon the terms and subject to the
conditions set forth in this Agreement, at the Closing, the Company will sell
to the Investor, and the Investor will purchase from the Company, the Shares
for the Purchase Price.

 

Section 3.                                            Closing.
The completion of the purchase and sale of the Shares (the “Closing”) shall take place at the
offices of Latham & Watkins LLP located at 505 Montgomery

 

2

 

Street, San Francisco, California 94111 as soon as practicable after
the satisfaction of the Company’s closing conditions and the Investor’s closing
conditions as set forth in Section 3.1 and Section 3.2, respectively,
on such date as the Company and the Investor shall mutually agree (the “Closing Date”).

 

3.1                                 Company’s Closing Conditions.
The Company’s obligation to issue the Shares to the Investor shall be subject
to the following conditions, any one or more of which may be waived by the
Company (provided that no such waiver shall be deemed given unless in writing
and executed by the Company):

 

(a)                                  receipt by the Company of a
countersigned copy of this Agreement executed by the Investor;

 

(b)                                 receipt by the Company of
immediately available funds in the full amount of the Purchase Price for the
Shares being purchased hereunder;

 

(c)                                  the accuracy of the representations
and warranties made by the Investor in this Agreement; and

 

(d)                                 on the Closing Date, no legal
action, suit or proceeding shall be pending or threatened which seeks to
restrain or prohibit the transactions contemplated by this Agreement.

 

3.2                                 Investor’s Closing
Conditions. The Investor’s obligation to purchase the Shares shall be
subject to the following conditions, any one or more of which may be
waived by the Investor (provided that no such waiver shall be deemed given
unless in writing and executed by the Investor):

 

(a)                                  receipt by the Investor of a
countersigned copy of this Agreement executed by the Company;

 

(b)                                 receipt by the Investor of evidence
of one or more stock certificates representing the Shares, which evidence may be
satisfied by delivery to the Investor of a copy of the executed and delivered
instruction letter from the Company to American Stock Transfer & Trust
Company, the Company’s transfer agent, instructing American Stock Transfer &
Trust Company to deliver a stock certificate representing the Shares to the
Investor;

 

(c)                                  the accuracy of the representations
and warranties made by the Company in this Agreement;

 

(d)                                 all outstanding shares of the Aviza, Inc.’s
Series B Preferred Stock and Series B-1 Preferred Stock shall have
been converted into shares of Common Stock at a conversion price per share of
not less than the per share purchase price of the Shares;

 

(e)                                  on the Closing Date, no legal
action, suit or proceeding shall be pending or threatened which seeks to
restrain or prohibit the transactions contemplated by this Agreement;

 

3

 

(f)                                    the receipt by the Investor of a
certificate in substantially the form attached hereto as Exhibit A,
dated the Closing Date, duly executed by its Chief Executive Officer to the
effect set forth in clauses (c), (d) and (e) above;

 

(g)                                 a legal opinion of counsel to the
Company addressed to the Investor in substantially the form as attached
hereto as Exhibit B;

 

(h)                                 the receipt by the Investor of a
certificate in substantially the form attached hereto as Exhibit C,
dated the Closing Date, of the Secretary of the Company certifying (i) the
certificate of incorporation and bylaws of the Company as in effect on the
Closing Date, (ii) all resolutions of the board of directors of the
Company relating to this Agreement and the transactions contemplated hereby and
(iii) the incumbency of all officers of the Company executing this
Agreement and any other agreement or document contemplated hereby; and

 

(i)                                     the receipt by the Investor of a
certificate from American Stock Transfer & Trust Company, the Company’s
transfer agent, certifying the number of issued and outstanding shares of
Common Stock of the Company.

 

Section 4.                                            Representations
and Warranties of the Company. Except as set forth on the Schedule of
Exceptions attached hereto as Exhibit D (the “Schedule of
Exceptions”), the Company hereby represents and warrants to, and
covenants with, the Investor, as of the date hereof and as of the Closing Date,
as follows:

 

4.1                                 Organization, Good
Standing and Qualification. Each of the Company,  Aviza, Inc., a Delaware corporation, and
Trikon Technologies, Inc., a Delaware corporation (Aviza, Inc. and
Trikon Technologies, Inc. are hereinafter referred to individually as a “Subsidiary” and collectively, the “Subsidiaries”), is duly organized
and validly existing in good standing under the laws of the jurisdiction of its
organization. Each of the Company and the Subsidiaries has full power and authority
to own, operate and occupy its properties and to conduct its business as
presently conducted and is registered or qualified to do business in and is in
good standing in each jurisdiction in which it owns or leases property or
transacts business and where the failure to be so qualified would have a
material adverse effect upon the business, operations, assets or financial
condition of the Company and the Subsidiaries, considered as one enterprise, or
a material adverse effect upon the Company’s ability to perform in any
material respect its obligations under this Agreement, and to the knowledge of
the Company, no proceeding has been instituted in any such jurisdiction,
revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such
power and authority or qualification.

 

4.2                                 Subsidiaries.
Except as set forth in the SEC Documents or in the Form S-4:  (i) the Company does not own or control
any equity security or other interest of any other corporation, partnership,
limited liability company or other business entity other than the Subsidiaries;
(ii) the Subsidiaries do not own or control any equity security or other
interest of any other corporation, partnership, limited liability company or
other business entity; (iii) neither the Company nor a Subsidiary is a
participant in any joint venture, partnership or limited liability company and (iv) since
December 1, 2005, neither the Company nor a Subsidiary has consolidated or
merged with, acquired all or substantially all of the assets of, or acquired
the

 

4

 

stock of or any interest in any corporation, partnership, limited
liability company or other business entity.

 

4.3                                 Due Authorization.
The Company has all requisite power and authority to execute, deliver and perform its
obligations under this Agreement, and this Agreement has been duly authorized
and validly executed and delivered by the Company and constitutes a legally
valid and binding agreement of the Company enforceable against the Company in
accordance with its terms, except as rights to indemnity and contribution may be
limited by state or federal securities laws or the public policy underlying
such laws, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law).

 

4.4                                 Non-Contravention.
The execution and delivery of this Agreement, the issuance and sale of the
Shares to be sold by the Company under this Agreement, the fulfillment of the
terms of this Agreement by the Company and the Company’s consummation of the
transactions contemplated hereby will not (A) conflict with or constitute
a violation of, or default (with or without the giving of notice or the passage
of time or both) under, (i) any material bond, debenture, note or other
evidence of indebtedness, or under any material lease, indenture, mortgage,
deed of trust, loan agreement, joint venture or other agreement or instrument
to which the Company or a Subsidiary is a party or by which the Company or a
Subsidiary or their respective properties are bound (each, a “Material Contract”), (ii) the
charter, bylaws or other organizational documents of the Company or the
Subsidiaries or (iii) to the knowledge of the Company, any law,
administrative regulation, ordinance or order of any court or governmental
agency, arbitration panel or authority applicable to the Company or a
Subsidiary or their respective properties or (B) result in the creation or
imposition of any lien, encumbrance, claim, security interest or restriction
upon any of the material properties or assets of the Company or a Subsidiary or
an acceleration of indebtedness pursuant to any obligation, agreement or
condition contained in any material bond, debenture, note or any other evidence
of indebtedness or any material indenture, mortgage, deed of trust or any other
agreement or instrument to which the Company or a Subsidiary is a party or by
which any of them is bound or to which any of the property or assets of the
Company or a Subsidiary is subject.

 

4.5                                 Governmental
Consents. No consent, approval, authorization or other order of, or
registration, qualification or filing with, any regulatory body, administrative
agency, self-regulatory organization, stock exchange or market or other
governmental body in the United States is required for the execution and
delivery of this Agreement and the valid issuance and sale of the Shares to be
sold pursuant to this Agreement, except for those that have already been made
or obtained and except for any securities filings required to be made after the
Closing under foreign, federal or state securities laws.

 

4.6                                 Reporting Status.
The Company has filed in a timely manner all documents that the Company was
required to file under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), since December 1,
2005 (collectively, the “SEC Documents”).
The SEC Documents and the Form S-4 complied in all material respects with
the SEC’s requirements as of their respective filing dates. None of the SEC
Documents or the Form S-4

 

5

 

contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

 

4.7                                 Capitalization.

 

(a)                                  As of the date hereof, the
authorized capital stock of the Company consists of one hundred million
(100,000,000) shares of Common Stock and five million (5,000,000) shares of
preferred stock, par value $0.0001 per share, of the Company (the “Preferred Stock”).

 

(b)                                 As of April 20, 2006, there
were (i) 10,310,689 shares of Common Stock issued and outstanding, (ii) no
shares of Preferred Stock issued and outstanding, (iii) 322,237 shares of
Common Stock available for issuance upon exercise of stock options available
for grant under the stock incentive plans of the Company and the Subsidiaries, (iv) 3,798,053
shares issuable upon exercise of outstanding stock options issued by the
Company or the Subsidiaries to current or former employees, consultants and
directors of the Company and the Subsidiaries, (v) 406,725 shares of
Common Stock issuable upon exercise of outstanding warrants issued by the
Company or the Subsidiaries, (vi) 110,000 shares of preferred stock of
Aviza, Inc. issued and outstanding and (vii) no other shares or
options, warrants or other rights to acquire shares of capital stock of the
Company or securities convertible into capital stock of the Company.

 

(c)                                  Since February 27, 2006, the
Company has not issued any shares or options, warrants or other rights to
acquire shares of capital stock of the Company or securities convertible into
capital stock of the Company other than (i) pursuant to option exercises, (ii) the
Shares, as contemplated by this Agreement and (iii) ordinary course grants
of options to employees.

 

(d)                                 Except with respect to the Series B
Preferred Stock and Series B-1 Preferred Stock of Aviza, Inc., the
Company is, directly or indirectly, the registered and beneficial owner of all
of the outstanding shares of capital stock of each of the Subsidiaries.

 

(e)                                  All outstanding shares of Common
Stock are duly authorized, validly issued, fully paid and nonassessable, free
from any pledges, liens or encumbrances created by the Company.

 

(f)                                    The Shares to be sold pursuant to
this Agreement have been duly authorized, and when issued and paid for in
accordance with the terms of this Agreement will be validly issued, fully paid
and nonassessable, free from any pledges, liens or encumbrances created by the
Company.

 

(g)                                 Other than as disclosed in the SEC
Documents or in the Company’s registration statement on Form S-4, as
amended (File No. 333-126098) (the “Form S-4”),
there are no outstanding rights, options, warrants, preemptive rights, rights
of first refusal agreements, commitments or similar rights for the purchase or
acquisition from the Company of any securities of the Company.

 

6

 

(h)                                 Except as set forth in the SEC
Documents or in the Form S-4, no holder of any securities of the Company
or any of the Subsidiaries has any rights (“demand,” “piggyback” or otherwise)
to have such securities registered by reason of the intention to file, filing
or effectiveness of a Registration Statement.

 

(i)                                     Except as set forth in the SEC
Documents or in the Form S-4, to the Company’s knowledge, there are no
outstanding proxy or stockholder agreements, or agreements of any kind related
to the voting of the Company’s securities.

 

4.8                                 Legal Proceedings.
To the knowledge of the Company, there is no material legal or governmental
proceeding pending or threatened to which the Company or a Subsidiary or any
officer or director of the Company or a Subsidiary in their capacity as such
officer or director is or may be a party or of which the business or
property of the Company or a Subsidiary is subject that is not disclosed in the
SEC Documents or in the Form S-4. To the knowledge of the Company there is
no action, suit, proceeding, inquiry or investigation before or by any court,
public board or body (including, without limitation, the SEC) pending or
threatened against or affecting the Company or a Subsidiary wherein an
unfavorable decision, ruling or finding could adversely affect the validity or
enforceability of, or the authority or ability of the Company to perform its
obligations under, this Agreement.

 

4.9                                 No
Violations.

 

(a)                                  Neither the Company nor a Subsidiary
is in violation of its charter, bylaws or other organizational document, or in
violation of any law, administrative regulation, ordinance or order of any
court or governmental agency, arbitration panel or authority applicable to the
Company or a Subsidiary, which violation, individually or in the aggregate,
would be reasonably likely to have a material adverse effect on the business,
operations, assets or financial condition of the Company and the Subsidiaries,
considered as one enterprise, or is in violation or default (and there exists
no condition which, with or without the passage of time or giving of notice or
both, would constitute a violation or default) in any respect in the
performance of any Material Contract, including, without limitation, any bond,
debenture, note or any other evidence of indebtedness to which the Company or a
Subsidiary is a party or by which the Company or a Subsidiary is bound or by
which the properties of the Company or a Subsidiary are bound, which would be
reasonably likely to have a material adverse effect upon the business,
operations, assets or financial condition of the Company and the Subsidiaries,
considered as one enterprise. The Material Contracts attached as exhibits to or
incorporated by reference into the Form S-4 and the SEC Documents are in
full force and effect as of the date hereof.

 

(b)                                 The Company has established
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the Company and designed such disclosure controls and procedures
to ensure that material information relating to the Company and the
Subsidiaries is made known to the certifying officers by others within those
entities, particularly during the period in which the Company’s most recently
filed periodic report under the Exchange Act, as the case may be, is being
prepared.

 

(c)                                  The Company’s certifying officers
have evaluated the effectiveness of the Company’s disclosure controls and
procedures as of the last day of the fiscal

 

7

 

period (such date, the “Evaluation Date”)
covered by the most recently filed periodic report under the Exchange Act. The
Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the
disclosure controls and procedures based on their evaluations as of the Evaluation
Date. Since the Evaluation Date, there have been no significant changes in the
Company’s disclosure controls and procedures (as such terms are defined in Item
307 of Regulation S-K under the Exchange Act) or in other factors that could
significantly affect the Company’s disclosure controls and procedures.

 

4.10                           Governmental Permits,
Etc. Each of the Company and the Subsidiaries has all necessary franchises,
licenses, certificates and other authorizations from any foreign, federal,
state or local government or governmental agency, department or body that are
currently necessary for the operation of the business of the Company and the
Subsidiaries as currently conducted, except where the failure to currently
possess could not reasonably be expected to have a material adverse effect upon
the business, operations, assets or financial condition of the Company and the
Subsidiaries, considered as one enterprise (the “Material
Permits”), and neither the Company nor a Subsidiary has received
any notice of proceedings relating to the revocation or modification of any
Material Permit.

 

4.11                           Intellectual Property.
Each of the Company and the Subsidiaries owns or possesses sufficient rights to
use all patents, patent rights, trademarks, copyrights, licenses, inventions,
trade secrets, trade names and know-how (collectively, “Intellectual
Property”) that are necessary for the conduct of its business as
now conducted except where the failure to currently own or possess would not
have a material adverse effect on the business, operations, assets or financial
condition of the Company and the Subsidiaries, considered as one enterprise,
free and clear of any liens, encumbrances, claims, security interests or
restrictions, except for such as do not materially interfere with the conduct
of the Company’s business as presently conducted. Except as set forth in the
SEC Documents or in the Form S-4, (i) neither the Company nor a
Subsidiary has received any notice of, or has any knowledge of, any
infringement of asserted rights of a third party with respect to any
Intellectual Property and (ii) neither the Company nor a Subsidiary has
received any notice of any infringement rights by a third party with respect to
any Intellectual Property.

 

4.12                           Financial Statements.
The historical financial statements of the Company and the related notes
thereto included in the SEC Documents and the historical financial statements
of the Subsidiaries and the related notes thereto included in the Form S-4 present
fairly, in accordance with generally accepted accounting principles, the
consolidated financial position of the Company and the Subsidiaries, as
applicable, as of the dates indicated, and, as applicable, the results of the Company’s
consolidated operations and cash flows for the periods therein specified and
the Subsidiaries’ operations and cash flows for the periods therein specified.  Such historical financial statements
(including the related notes thereto) (i) complied as to form in all
material respects with the published rules and regulations of the SEC
applicable thereto; (ii) have been prepared in accordance with generally
accepted accounting principles applied on a consistent basis throughout the
periods therein specified, except as may be noted in the notes to such
financial statements contained in the SEC Documents and the Form S-4 and (iii) fairly
present the consolidated financial position of the Company and the Subsidiaries
as of the respective dates thereof and the consolidated results of operations
of the Company and the Subsidiaries for the periods covered thereby. Except as
set forth in the historical financial statements included in the SEC Documents,
neither the Company nor any Subsidiary has any liabilities, contingent or
otherwise, other than liabilities incurred in the

 

8

 

ordinary course of business subsequent to December 30, 2005 or
liabilities of the type not required under generally accepted accounting
principles to be reflected in such financial statements.

 

4.13                           No Material Adverse
Change. Except as set forth in the SEC Documents, since December 30,
2005 there has not been:

 

(a)                                  any material adverse change, or any
event, development or circumstance which could reasonably be expected to result
in a material adverse change, in the business, operations, assets or financial
condition of the Company and the Subsidiaries, considered as one enterprise;

 

(b)                                 any liabilities or obligations,
direct or contingent, that are material to the Company and the Subsidiaries,
considered as one enterprise, incurred by the Company, except liabilities and
obligations incurred in the ordinary course of business;

 

(c)                                  any dividend or distribution of any
kind declared, paid or made on the capital stock of the Company or a
Subsidiary;

 

(d)                                 any loss or damage (whether or not
insured) to the physical property of the Company or a Subsidiary that has been
sustained which has a material adverse effect on the business, operations,
assets or financial condition of the Company and the Subsidiaries, considered as
one enterprise; or

 

(e)                                  any notice from or by the SEC or any
other state or federal securities regulatory agency, the National Association
of Securities Dealers (the “NASD”) or
the Nasdaq National Market with respect to (i) any investigation of the
Company’s activities or financial results, (ii) the Company’s compliance
with applicable laws, rules or regulations or (iii) issues regarding
the continued trading of the Common Stock on the Nasdaq National Market.

 

4.14                           NASDAQ Listing. The
Common Stock is registered pursuant to Section 12(g) of the Exchange
Act and is listed on the Nasdaq National Market, trading in the Common Stock
has not been suspended, and the Company has taken no action designed to
terminate, or likely to have the effect of terminating, the registration of the
Common Stock under the Exchange Act or delist the Common Stock from the Nasdaq
National Market, nor to the knowledge of the Company is the NASD currently
contemplating terminating such listing. The Company and the Common Stock are in
compliance with all quantitative and qualitative criteria for continued listing
and trading on the Nasdaq National Market.

 

4.15                           Listing of the Securities.
The Company shall comply with all requirements of the NASD with respect to the
issuance of the Shares and the listing thereof on the Nasdaq National Market.
In furtherance thereof, the Company shall use its commercially reasonable
efforts to take such actions as may be necessary as soon as practicable
and in no event later than twenty (20) days after the Closing Date (if not
filed prior to the Closing Date), to file with the Nasdaq National Market an
application or other document required by the Nasdaq National Market and pay
all applicable fees when due for the listing of the Shares with the Nasdaq National
Market.

 

9

 

4.16                           No Manipulation of Stock.
The Company has not taken, and will not, in violation of applicable law, take
any action designed to or that might reasonably be expected to cause or result
in stabilization or manipulation of the price of the Common Stock to facilitate
the sale or resale of the Shares.

 

4.17                           Insurance. The
Company maintains and will continue to maintain insurance against loss or
damage by fire or other casualty and such other insurance, including, but not
limited to, product liability insurance, in such amounts and covering such
risks as is consistent with industry practice for the conduct of its business
and the value of its properties, all of which insurance is in full force and effect.

 

4.18                           Tax Matters. The
Company has filed all material federal, state and local income and franchise
and other tax returns required to be filed and has paid all taxes due in
accordance therewith, and no tax deficiency has been determined adversely to
the Company which has had (nor does the Company have any knowledge of any tax
deficiency which, if determined adversely to the Company, might have) a
material adverse effect on the business, operations, assets or financial
condition of the Company and the Subsidiaries, considered as one enterprise.

 

4.19                           Investment Company.
The Company is not, and immediately after receipt of the payment for the Shares
will not be, an “investment company” within the meaning of such term under the
Investment Company Act of 1940, as amended, and the rules and regulations
of the SEC thereunder.

 

4.20                           No Registration.
Assuming the accuracy of the representations and warranties made by the
Investor in Section 5 hereof, and compliance with the covenants of the
Investor in Section 9 hereof, no registration of the Shares under the
Securities Act is required in connection with the offer and sale of the Shares
by the Company to the Investor as contemplated by this Agreement.

 

4.21                           Internal Accounting
Controls. The Company and the Subsidiaries maintain a system of internal
accounting controls sufficient, in the judgment of the Company’s executive
officers, to provide reasonable assurance that (i) transactions are
executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset
accountability, (iii) access to assets is permitted only in accordance
with management’s general or specific authorization and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

 

4.22                           Form D; General
Solicitation. The Company agrees to file a Form D with respect to the
Shares on a timely basis as required under Regulation D under the Securities
Act to claim the exemption provided by Rule 506 of Regulation D. Neither
the Company nor any individual, corporation, limited liability company,
partnership, joint venture, association, trust, unincorporated organization or
other entity (each a “Person”)
acting on behalf of the Company has offered or sold any of the Shares by any form of
general solicitation or general advertising. The Company has offered the Shares
for sale only to the Investor.

 

10

 

4.23                           Use of Proceeds. The
Company will use the net proceeds from the sale of the Shares for working
capital and other general corporate purposes.

 

4.24                           Integration. The
Company shall not, and shall use its commercially reasonable efforts to ensure
that none of its affiliates shall, sell, offer for sale or solicit offers to
buy or otherwise negotiate in respect of any “security” (as defined in the
Securities Act) that would be integrated with the offer or sale of the Shares
in a manner that would require the registration under the Securities Act of the
sale of the Shares to the Investor

 

4.25                           Questionable Payments.
Neither the Company nor, to the knowledge of the Company, any of its current or
former stockholders, directors, officers, employees, agents or other persons
acting on behalf of the Company, has on behalf of the Company or in connection
with its business:  (i) used any
corporate funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to political activity; (ii) made any direct or
indirect unlawful payments to any governmental officials or employees from
corporate funds; (iii) established or maintained any unlawful or
unrecorded fund of corporate monies or other assets; (iv) made any false
or fictitious entries on the books and records of the Company or (v) made
any unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment of any nature.

 

4.26                           Transactions with
Affiliates. Except as set forth in the SEC Documents or in the Form S-4,
none of the officers or directors of the Company and, to the knowledge of the
Company, none of the employees of the Company is presently a party to any
transaction with the Company or to a presently contemplated transaction that
has been approved by the Board (other than for services as employees, officers
and directors) that would be required to be disclosed pursuant to Item 404 of
Regulation S-K promulgated under the Securities Act.

 

4.27                           Broker’s Fees. No
broker, investment banker, financial advisor or other Person is entitled to any
broker’s, finder’s, financial advisor’s or other similar fee or commission in
connection with the transactions contemplated hereby based upon arrangements
made by or on behalf of the Company.

 

Section 5.                                            Representations
and Warranties of the Investor. The Investor represents and warrants to,
and covenants with, the Company, as of the date hereof and as of the Closing
Date, as follows:

 

5.1                                 Due Authorization.
The Investor has full right, power, authority and capacity to enter into this
Agreement and to consummate the transactions contemplated hereby and has taken
all necessary action to authorize the execution, delivery and performance of
this Agreement. This Agreement constitutes a legally valid and binding
obligation of the Investor enforceable against the Investor in accordance with
its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law).

 

11

 

5.2                                 Accredited
Investor.

 

(a)                                  The Investor is an “accredited
investor” as defined in Regulation D under the Securities Act, and the Investor
has the knowledge, sophistication and experience necessary to make, and is
qualified to make decisions with respect to, investments in shares presenting
an investment decision like that involved in the purchase of the Shares,
including investments in securities issued by the Company and investments in
comparable companies, and has requested all information it deemed relevant in
making an informed decision to purchase the Shares and has reviewed and
considered all information provided in response to such requests.

 

(b)                                 The Investor is acquiring the Shares
for its own account for investment only and with no present intention of
distributing any of the Shares in violation of the Securities Act or any
arrangement or understanding with any other Persons regarding the distribution
of such Shares.

 

(c)                                  The Investor will not, directly or
indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit
any offers to buy, purchase or otherwise acquire or take a pledge of) any of
the Shares except in compliance with the Securities Act, applicable state
securities laws and the respective rules and regulations promulgated
thereunder.

 

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

 

5.3                                 Acknowledgement
Regarding Offering of the Shares. The Investor acknowledges that the
Company has represented that no action has been or will be taken in any
jurisdiction outside the United States by the Company that would permit an
offering of the Shares, or possession or distribution of offering materials in
connection with the issuance of the Shares, in any jurisdiction outside the
United States where action for that purpose is required. The Investor agrees to
comply with all applicable laws and regulations in each foreign jurisdiction in
which it purchases, offers, sells or delivers Shares or has in its possession
or distributes any offering material, in all cases at its own expense.

 

5.4                                 Broker Fees. No
broker, investment banker, financial advisor or other Person is entitled to any
broker’s, finder’s, financial advisor’s or other similar fee or commission in
connection with the transactions contemplated hereby based upon arrangements
made by or on behalf of the Investor.

 

5.5                                 Canadian Addendum.
The Investor further represents and warrants to, and covenants with, the Company,
as of the date hereof and as of the Closing Date, as set forth in the Canadian
Addendum attached hereto.

 

Section 6.                                            Survival
of Representations and Warranties. Notwithstanding any investigation made
by any party to this Agreement, all representations and warranties made by the
Company and the Investor herein shall survive for a period of two (2) years
following the Closing Date.

 

12

 

Section 7.                                            Registration
of the Shares; Compliance with the Securities Act.

 

7.1                                 Registration
Procedures and Expenses. As soon as practicable, but in any event within
thirty (30) days after the Company shall have received a written request from
the Investor (any such request, a “Registration Demand”),
which may be given at any time after the Closing Date and before the
Registration Termination Date (any such date, a “Registration
Demand Date”), to effect any registration with respect to the
Shares up to that number of Shares set forth in a Registration Demand; provided,
however, that (a) if such Registration Demand Date is prior to the
earliest to occur of (i) January 1, 2007 and (ii) the date on
which affiliates of VantagePoint Venture Partners (“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 the
Closing after giving effect to the sale and issuance of the Shares and the
shares of Common Stock issued upon conversion of the Series B Preferred
Stock and Series B-1 Preferred Stock of Aviza, Inc. (as adjusted for
stock splits, combinations, recapitalizations and the like), the number of
Shares subject to such Registration Demand shall not exceed the greater of
(x) one percent (1%) of the Company’s Common Stock outstanding as shown by
the then-most-recent report or statement by the Company or (y) the average
weekly trading volume for the four (4) weeks immediately preceding such
Registration Demand Date; and (b) the Company 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, the Company shall:

 

(a)                                  subject to receipt of necessary
information from the Investor, 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 the Company) to enable the resale of the
Shares by the Investor on a delayed or continuous basis under Rule 415 of
the Securities Act;

 

(b)                                 use its reasonable best efforts,
subject to receipt of necessary information from the Investor, to cause the
Registration Statement to become effective as soon as practicable after the
Registration 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 used in connection therewith and take
all such other actions as may be necessary to keep the Registration
Statement current and effective for a period (the “Registration
Period”) ending on the earlier of (i) the Registration
Termination Date and (ii) the date on which the Investor 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 the Closing Date, and
(y) the date that all of the Shares become eligible for sale pursuant to Rule 144
during any one (1) ninety- (90)-day period;

 

(d)                                 promptly furnish to the Investor
with respect to the 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

 

13

 

amendments of the Prospectus or Registration Statement, in order to
facilitate the public sale or other disposition of all or any of such Shares by
the Investor;

 

(e)                                  promptly take such action as may be
necessary to qualify, or obtain, an exemption for the 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 Shares in states specified
in writing by the Investor; provided, however,
that the Company 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 7.1
and the registration of the 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 Shares and Prospectuses); (iv) all
application and filing fees in connection with listing the Shares with the
Nasdaq National Market and (v) all fees and disbursements of counsel of
the Company and the independent certified public accountants of the Company; provided, however, that the Investor 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 the Shares. The Company 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 the Investor, within two (2) business
days by electronic mail, facsimile or other electronic or non-electronic means
of communication, and, if requested by the Investor, 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 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 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 the Company), with the
managing underwriters of such offering, provided that the Investor enters into
and performs its obligations under such underwriting agreement (including
customary indemnification of such underwriters by the Investor).

 

14

 

7.2                                 Delay
in Effectiveness of Registration Statement.

 

(a)                                  The Company further agrees that:

 

(i)                                     in
the event the Registration Statement has not been filed with the SEC within
thirty (30) days after the Registration Demand Date, the Investor shall be
entitled to receive from the Company liquidated damages in an amount equal to
one percent (1.0%) of the total aggregate purchase price of the Shares 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 Registration Demand Date, the Investor shall be
entitled to receive from the Company 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 Registration Demand Date, the Investor shall
be entitled to receive an additional Liquidated Damages Payment; and

 

(iv)                              the
Company 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 one percent (1.0%) of the total aggregate purchase price
of the Shares that are to be registered on such Registration Statement.

 

(b)                                 Liquidated Damages Payments may, at
the Investor’s option, be delivered to the Investor in the form of cash or
Common Stock. The Company shall deliver all Liquidated Damages Payments to the
Investor by the fifth (5th) business day after the occurrence of the
events described in clauses (i), (ii), (iii) or (iv) of Section 7.2(a) hereof,
as applicable.

 

(c)                                  Notwithstanding anything to the
contrary contained in this Section 7.2 or in any other provision of this
Agreement, the Liquidated Damages Payments provided in this Section 7.2
shall be the Investor’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 7.2(a) hereof; provided, however, that the
Investor shall retain all equitable remedies then available to it.

 

7.3                                 Transfer
of Shares; Suspension.

 

(a)                                  The Investor 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 the Shares or any
derivative instruments, arrangement or securities the value of which is derived
from the securities of the Company or its right to purchase any securities of
the Company or any derivative instruments, arrangement or securities the value
of which is derived from the securities of the Company that would constitute a
sale within the meaning of the Securities Act, except as contemplated in the
Registration Statement referred to in Section 7.1(a) hereof or in
accordance with the Securities Act (including any exemption from the
registration requirements set forth therein), and that it shall promptly notify
the Company of any changes in the

 

15

 

information set forth in the Registration Statement regarding the
Investor or its plan of distribution.

 

(b)                                 Except in the event that Section 7.3(c) hereof
applies, the Company shall, at all times during the Registration Period,
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 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
the Investor copies of any documents filed pursuant to Section 7.3(b)(i) hereof;
and

 

(iii)                               inform the
Investor that the Company has complied with its obligations in Section 7.3(b)(i) hereof
(or that, if the Company has filed a post-effective amendment to the
Registration Statement that has not yet been declared effective, the Company
shall notify the Investor 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 the Investor pursuant to this Section 7.3(b)(iii) when
the amendment has become effective).

 

(c)                                  Subject to Section 7.3(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 the Company of any notification with respect to the suspension of
the qualification or exemption from qualification of any of the 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

 

16

 

a material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading,

 

then the
Company shall deliver a notice in writing to the Investor (the “Suspension Notice”) to the effect of
the foregoing and, upon receipt of such Suspension Notice, the Investor shall
refrain from selling any Shares pursuant to the Registration Statement (a “Suspension”) until the Investor’s
receipt of copies of a supplemented or amended Prospectus prepared and filed by
the Company, or until it is advised in writing by the Company that the current
Prospectus may be used. In the event of any Suspension, the Company shall
use its commercially reasonable efforts, consistent with the best interests of
the Company 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 the Investor.

 

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

 

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

 

7.4                                 Indemnification. For the purpose of
this Section 7.4, 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 7.1
hereof, and the term “Rules and Regulations” shall mean the rules and
regulations promulgated under the Securities Act.

 

(a)                                  Indemnification by the Company. The Company agrees to indemnify
and hold harmless the Investor, the officers and directors of the Investor and
any Person, if any, who controls the Investor within the meaning of the Securities
Act (collectively, the “Investor Indemnitees”),
against any losses, claims, damages, liabilities or expenses to which the
Investor Indemnitees may become subject, under the Securities Act, the
Exchange Act, or any other federal or state statutory law or regulation insofar
as such losses, claims, damages,

 

17

 

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 the Company to perform its obligations under this Agreement,
and shall reimburse the Investor Indemnitees for any legal and other expenses
as such expenses are reasonably incurred by the Investor Indemnitees in
connection with investigating, defending, settling, compromising or paying any
such loss, claim, damage, liability, expense or action;

 

provided,
however, that the Company 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 the
Company by or on behalf of the Investor expressly for use in the Registration
Statement or the Prospectus, (ii) the failure of the Investor to comply
with the covenants and agreements contained in Section 7.3 hereof
respecting resale of the 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 the Investor before the pertinent sale or
sales by the Investor 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 the Company, which consent shall not be
unreasonably withheld.

 

(b)                                 Indemnification by the Investor. The Investor agrees to indemnify
and hold harmless the Company, each of its directors, each of its officers who
sign the Registration Statement and each Person, if any, who controls the
Company within the meaning of the Securities Act, against any losses, claims,
damages, liabilities or expenses to which the Company, each of its directors,
each of its officers who sign the Registration Statement or controlling Person may become
subject, under the Securities 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:

 

18

 

(i)                                     any
failure on the part of the Investor to comply with the covenants and
agreements contained in Section 7.3 hereof respecting the sale of the
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 the Company by or on behalf of the Investor
expressly for use therein;

 

provided,
however, that the Investor shall not be liable for (a) any such
untrue or alleged untrue statement or omission or alleged omission of which the
Investor has delivered to the Company in writing a correction at least five (5) business
days before the occurrence of the transaction from which such loss was
incurred, and the Investor shall reimburse the Company, 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 the Company, 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 7.4(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 the Investor, which consent shall not be
unreasonably withheld.

 

(c)                                  Indemnification Procedure.

 

(i)                                     Promptly after
receipt by an indemnified party under this Section 7.4 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 7.4, 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 7.4 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

 

19

 

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 7.4 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 7.4, (A) with respect
to claims made pursuant to clause (i) of Section 7.4(b) hereof,
the Investor shall not be liable for any indemnification obligation under this
Agreement in excess of the amount of net proceeds received by the Investor from
the sale of the Shares and (B) with respect to claims made pursuant to
clause (ii) of Section 7.4(b) hereof, the Investor shall not be
liable for any indemnification obligation under this Agreement in excess of the
amount of net proceeds received by the Investor from the sale of the Shares
giving rise to such liability.

 

(d)                                 Contribution.

 

(i)                                     If
a claim for indemnification under this Section 7.4 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 7.4, 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 7.4 was available to such
party in accordance with its terms.

 

20

 

(ii)                                  The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 7.4 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 7.4, (A) with respect
to claims made pursuant to clause (i) of Section 7.4(b) hereof,
the Investor shall not be liable to contribute any amount in excess of the
amount of net proceeds received by the Investor from the sale of the Shares and
(B) with respect to claims made pursuant to clause (ii) of Section 7.4(b) hereof,
the Investor shall not be liable to contribute any amount in excess of (x) the
amount by which the net proceeds received by the Investor from the sale of the
Shares giving rise to such liability exceeds (y) the amount of any damages that
the Investor 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 Securities Act) shall be entitled to contribution from any other party to
this Agreement who was not guilty of such fraudulent misrepresentation.

 

7.5                                 Termination of
Conditions and Obligations. The restrictions imposed by Section 7.3 hereof upon the
transferability of the Shares shall cease and terminate as to any particular
number of 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 Securities Act. Notwithstanding the foregoing, it is expressly
understood that no such opinion of counsel shall be required if the Company
shall be furnished with written documentation reasonably satisfactory to it that
such Shares are being transferred in a customary transaction exempt from
registration under Rule 144 under the Securities Act.

 

Section 8.                                            Company
Covenants.

 

8.1                                 Rule 144. For a period
commencing on the date hereof and ending on the date on which the Investor may sell
all of the Shares pursuant to Rule 144(k) under the Securities Act, the
Company agrees with the Investor to:

 

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

 

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

 

8.2                                 Observation of
Meetings of the Board of Directors. The Company shall notify the Investor by
telephone, electronic mail, facsimile or other electronic or non-electronic
means of communication prior to each meeting of the Board of Directors of the
Company (the “Board”) at substantially the
same time as notice is provided to members of the Board and shall permit the
Investor to designate one (1) individual, which individual shall be
reasonably acceptable to the Company, to be an observer (the “Observer”) at each meeting of the
Board and to attend all such meetings in a non-voting capacity; provided,
however, that the Board shall have the right to exclude the Observer
from any portion of any such meeting if such exclusion is necessary in order
for the Board to preserve the attorney-client privilege, fulfill the Company’s

 

21

 

obligations
with respect to confidential or proprietary information of third parties or
comply with applicable law.

 

Section 9.                                            Investor
Covenants.

 

9.1                                 Transfer
Restrictions.
The Investor shall not make any sale of the Shares without complying with the
provisions of this Agreement, including Section 7.3 hereof, provided that
the Company complies with its obligations under Section 7.1 hereof,
without effectively causing the prospectus delivery requirement under the
Securities Act to be satisfied, if applicable, and the Investor acknowledges
that the certificates evidencing the Shares will be imprinted with a legend
that prohibits their transfer except in accordance therewith. The Investor
acknowledges that there may occasionally be times when the Company, based
on the advice of its counsel, determines that, subject to the limitations of Section 7.3
hereof, it must suspend the use of the Prospectus forming a part of the
Registration Statement until such time as an amendment to the Registration
Statement has been filed by the Company and declared effective by the SEC or
until the Company has amended or supplemented such Prospectus.

 

9.2                                 Standstill
Provision. Except for the Investor’s purchase of the Shares pursuant to
this Agreement and Investor’s participation as an observer at meetings of the
Board pursuant to Section 8.2 hereof, from the date of this Agreement
until the two- (2)-year anniversary of the date of this Agreement, unless the
Investor shall have been specifically invited in writing by the Board (or an
independent committee thereof), neither the Investor nor any of its affiliates
(as such term is defined under the Exchange Act) or representatives on behalf
of the Investor will in any manner, directly or indirectly:

 

(a)                                  effect or seek, offer or propose
(whether publicly or otherwise) to effect, or cause or participate in or in any
way assist any other Person to effect, offer or propose (whether publicly or
otherwise) to effect or participate in:

 

(i)                                     any
acquisition of any securities (or beneficial ownership thereof) or assets
(other than non-material assets) of the Company that would cause the Investor’s
percentage ownership of the Company’s capital stock on a fully diluted basis as
of the date of such acquisition immediately after giving effect to such
acquisition to exceed the Investor’s percentage ownership of the Company’s
capital stock on a fully diluted basis as of the Closing after giving effect to
the sale and issuance of the Shares and the shares of Common Stock issued upon
conversion of the Series B Preferred Stock and Series B-1 Preferred
Stock of Aviza, Inc.;

 

(ii)                                  any
tender or exchange offer, merger, consolidation or other business combination
involving the Company;

 

(iii)                               any
recapitalization, restructuring, liquidation, dissolution or other
extraordinary transaction with respect to the Company or any material portion
of the Company’s business; or

 

(iv)                              any “solicitation”
of “proxies” (as such terms are used in the proxy rules of the SEC) or
consents to vote any voting securities of the Company;

 

22

 

(b)                                 form, join or in any way participate
in a “group” (as defined under the Exchange Act) with respect to the securities
of the Company if such group’s percentage ownership of the Company’s capital
stock on a fully diluted basis would exceed the Investor’s percentage ownership
of the Company’s capital stock on a fully diluted basis as of the Closing after
giving effect to the sale and issuance of the Shares and the shares of Common
Stock issued upon conversion of the Series B Preferred Stock and Series B-1
Preferred Stock of Aviza, Inc.;

 

(c)                                  take any action which to the
knowledge of the Investor requires the Company to make a public announcement
regarding any of the types of matters set forth in clause (a) above other
than with respect to acquisitions of the Company’s capital stock by the
Investor that are permitted by sub-clause (i) of clause (a) above and
clause (b) above; or

 

(d)                                 enter into any discussions or
arrangements with any third party with respect to any of the foregoing or
advise, assist, encourage, finance or seek to persuade others to take any
action with respect to the foregoing,

 

in each case
other than with respect to acquisitions of the Company’s capital stock by the
Investor that are permitted by sub-clause (i) of clause (a) above and
clause (b) above. The provisions of this Section 9.2 shall not
prohibit the Investor’s Equity Markets Group from engaging in any of the
activities set forth in sub-clause (i) of clause (a) above and clause
(b) above or from entering into any discussions or arrangements with any
third party with respect to any of the activities set forth in sub-clause (i) of
clause (a) above and clause (b) above.

 

9.3                                 Right
of First Refusal.

 

(a)                                  Should the Investor propose to accept one or more bona fide
offers from any Persons identified on Exhibit F attached hereto as
a Restricted Party for purposes of this Section 9.3 and such Persons’
affiliates (each, a “Restricted Party”)
to purchase from the Investor a number of shares of Common Stock that exceeds
five percent (5%) of the Common Stock outstanding as shown by the
then-most-recent report or statement by the Company in any single transaction
or series of related transactions occurring within a 180-day period
(collectively, a “Purchase Offer”), the
Investor, prior to accepting any such Purchase Offer, shall promptly deliver a
written notice (the “Notice of Sale”)
to the Company stating the terms and conditions of such Purchase Offer on which
the Investor in good faith believes a binding agreement is obtainable,
including, without limitation, the number of shares of Common Stock proposed to
be sold or transferred (the “Offered Shares”),
the nature of such sale or transfer, the consideration to be paid and the name
and address of each prospective purchaser or transferee. The Notice of Sale
shall also include a copy of any written proposal, term sheet or letter of
intent or other agreement relating to the Purchase Offer.

 

(b)                                 The Company shall have an option for thirty (30) business
days after receiving the Notice of Sale to deliver written notice (the “Reply Notice”) to the Investor of
its election to purchase all, or any portion of, the Offered Shares at the
price and upon the terms specified in the Notice of Sale.

 

(c)                                  In the event that the Company through delivery of its Reply
Notice elects not to purchase all, or any portion of, the Offered Shares, then
and only then shall the

 

23

 

Investor
be free to consummate the transactions contemplated by the Purchase Offer with
respect to that portion of the Offered Shares not purchased by the Company; provided,
however, that if such transactions are not consummated within ninety
(90) days of the date of the Reply Notice, the Investor shall again comply with
all of the provisions of this Section 9.3.

 

(d)                                 The rights of the Company set forth in this Section 9.3
shall be assignable by the Company to any Person in the complete and exclusive
discretion of the Company.

 

(e)                                  Additional Restricted Parties may be identified by the
Company after the date of this Agreement only upon the written consent of the
Investor, which consent shall not be unreasonably withheld.

 

(f)                                    For purposes of clarity, the parties
hereto acknowledge that the provisions of this Section 9.3 are not
intended to apply to any sale of Shares by the Investor in any open market
transaction conducted through a broker/dealer.

 

(g)                                 The restriction set forth in this Section 9.3
shall terminate on the two- (2)-year anniversary of the Closing Date.

 

Section 10.                                      Miscellaneous.

 

10.1                           Legends.

 

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

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS
ON TRANSFER SET FORTH IN A STOCK PURCHASE AGREEMENT. A COPY OF SUCH STOCK
PURCHASE AGREEMENT MAY BE OBTAINED FROM THE COMPANY UPON REQUEST.”

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT EXCEPT IN
COMPLIANCE WITH RULE 144 PROMULGATED UNDER THE SECURITIES ACT OR IN THE
EVENT THAT AVIZA TECHNOLOGY,

 

24

 

INC. (THE “COMPANY”)
SHALL HAVE RECEIVED AN OPINION FROM COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER
THE PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.”

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE HELD BY A PERSON WHO MAY BE
DEEMED TO BE AN AFFILIATE OF THE ISSUER FOR PURPOSES OF RULE 144
PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND MAY BE SOLD ONLY IN COMPLIANCE WITH RULE 144, PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A
VALID EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.”

 

10.2                           Notices. Except as
specifically permitted by Section 7.1(g) all notices, requests,
consents and other communications hereunder shall be in writing, shall be
mailed (A) if within domestic United States by first-class registered
or certified airmail, or nationally recognized overnight express courier,
postage prepaid, or by facsimile, or (B) if delivered from outside the
United States, by International Federal Express or facsimile, and shall be
deemed given (i) if delivered by first-class registered or certified
mail domestic, three business days after so mailed, (ii) if delivered by
nationally recognized overnight carrier, one business day after so mailed, (iii) if
delivered by International Federal Express, two business days after so mailed
and (iv) if delivered by facsimile, upon electric confirmation of receipt
and shall be delivered as addressed as follows:

 

(a)                                  if
to the Company, to:

 

Aviza Technology, Inc.

440 Kings Village Road

Scotts Valley, CA  95066

Attn:  President and Chief Executive
Officer

Phone:  (831) 438-2100

Facsimile:  (831) 439-6349

 

25

 

with a copy (which shall not constitute notice) to:

 

Latham & Watkins LLP

140 Scott Drive

Menlo Park, CA  94025

Attn:  Christopher L. Kaufman, Esq.

Phone:  (650) 328-4600

Facsimile:  (650) 463-2600

 

(b)                                 if
to the Investor, to:

 

Caisse de dépôt et placement du Québec

Édifice Price 

65, rue Sainte-Anne

14e étage

Quebec City, Quebec

Canada

G1R 3X5

Attn: Bruno Duguay

Phone: (418) 684-2334

Facsimile: (418) 684-2335

 

with a copy (which shall not constitute notice) to:

 

Cooley Godward LLP

3175 Hanover Street

Palo Alto, CA  94304-1130

Attn: John Geschke

Phone: (650) 843-5757

Facsimile: (650) 849-7400

 

10.3                           Amendments and Waivers.
No provision of this Agreement may be amended or waived except in a
written instrument signed, in the case of an amendment, by the Company and the
Investor or, in the case of a waiver, by the party against whom enforcement of
any such waiver is sought. No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement hereof, nor shall any
delay or omission of either party to exercise any right hereunder in any manner
impair the exercise of any such right.

 

10.4                           Headings. The
headings of the various sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed to be part of this
Agreement.

 

10.5                           Severability. In case
any provision contained in this Agreement should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby, and

 

26

 

the parties will attempt to agree upon a valid and enforceable
provision that is a reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Agreement.

 

10.6                           Governing Law. This
Agreement shall be governed by, and construed in accordance with, the internal
law of the State of California without regard to conflict of law principles
that would result in the application of any law other than the law of the State
of California.

 

10.7                           Entire Agreement.
This Agreement and that certain Confidentiality Agreement, dated February 22,
2006, by and between the Company and the Investor (the “Confidentiality
Agreement”) constitute the entire agreement between the parties
hereto pertaining to the subject matter hereof, and any and all other written
or oral agreements relating to such subject matter are expressly cancelled.
Notwithstanding the foregoing, the entire paragraph beginning at the bottom of page three
(3) of the Confidentiality Agreement and continuing through the middle of page four
(4) of the Confidentiality Agreement, beginning with the clause “In
consideration of the Evaluation Material being furnished hereunder” is hereby
superseded by this Agreement and is of no further force or effect.

 

10.8                           Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall
constitute an original, but all of which, when taken together, shall constitute
but one instrument, and shall become effective when one or more counterparts
have been signed by each party hereto and delivered to the other parties.

 

10.9                           Successors and Assigns.
This Agreement shall inure to the benefit of and be binding upon the successors
and permitted assigns of the Company and the Investor, including without
limitation and without the need for an express assignment, affiliates of the
Investor. With respect to transfers that are not made pursuant to the
Registration Statement, the rights and obligations of the Investor under this
Agreement shall be automatically assigned by such Investor to any transferee of
all or any portion of such Investor’s Shares who is a Permitted Transferee (as
defined below); provided, however, that within two business days
prior to the transfer, (i) the Company is provided notice of the transfer
including the name and address of the transferee and the number of Shares
transferred and (ii) that such transferee agrees in writing to be bound by
the terms of this Agreement. (For purposes of this Agreement, a “Permitted Transferee” shall mean any
Person who (a) is an “accredited investor,” as that term is defined in Rule 501(a) of
Regulation D under the Securities Act and (b) is a transferee of at least
250,000 Shares as permitted under the securities laws of the United States).
Upon any transfer permitted by this Section 10.9, the Company shall be
obligated to such transferee to perform all of its covenants under this
Agreement as if such transferee were an Investor.

 

10.10                     Expenses. Each of the
Company and the Investor shall bear its respective legal, accounting, advisory
and other fees, and all other out-of-pocket expenses in connection with the
preparation and negotiation of this Agreement; provided, however,
that if the Closing occurs, the Company shall reimburse the Investor for its
legal and advisory fees actually incurred up to a maximum aggregate amount of
fifty thousand dollars ($50,000).

 

27

 

10.11                     Arbitration.

 

(a)                                  The parties hereto agree that any
dispute, controversy or claim arising out of or relating to this Agreement, or breach
thereof (“Dispute”), shall be subject
to a mandatory period of thirty (30) days during which the parties shall (i) each
appoint a representative (each a “Representative”
and collectively, the “Representatives”)
and (ii) the Representatives shall meet in a timely manner for the purpose
of attempting to resolve the Dispute. The Representatives shall negotiate in
good faith to resolve the Dispute without resort to formal proceedings. During
the course of such negotiations, the parties shall comply with all reasonable
requests for access to relevant information. Formal proceedings for the
arbitration of such Dispute may not be commenced until the expiration of
the foregoing mandatory thirty- (30)-day period. Both parties shall continue to
perform their respective obligations hereunder during the negotiations by
Representatives attempting to resolve the Dispute.

 

(b)                                 Following the expiration of the
mandatory thirty- (30)-day period provided in Section 10.11(a) hereof,
any unresolved Dispute shall be settled by arbitration administered by the
American Arbitration Association (“AAA”) under
its Commercial Dispute Resolution Procedures, and judgment on the award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof.

 

(c)                                  The parties agree to the arbitration
of the Dispute by a single arbitrator appointed in accordance with the rules and
procedures of the American Arbitration Association.

 

(d)                                 The parties agree to appropriate
discovery, including depositions, under the jurisdiction of the arbitrator. The
arbitrator’s decision in such matters shall be final and binding on the
parties.

 

(e)                                  The parties agree that the
arbitrator may grant any remedy or relief that the arbitrator deems just
and equitable within the scope of the agreement between the parties, including
but not limited to the award of compensatory damages and ordering the specific
performance of the contract, but not including the award of exemplary or
punitive damages.

 

(f)                                    The parties hereby agree that,
notwithstanding the fact that applicable law may not provide for the award
of attorneys’ fees and costs and/or otherwise grant the arbitrator the
discretion to award such fees and costs, pursuant to this Agreement, the
arbitrator may, in his or her reasonable discretion, award payment of attorneys’
fees and costs by a party as a part of the arbitration award rendered by
the arbitrator.

 

[Signature Page Follows]

 

28

 

IN WITNESS WHEREOF,
the parties have executed this Stock Purchase Agreement as of the date first
written above.

 

 

	
  AVIZA TECHNOLOGY, INC.

  
	
   

  
	
   

  
	
  /s/ Jerauld J. Cutini

  	
   

  
	
  By: Jerauld J. Cutini

  
	
  Its: President and Chief Executive Officer

  
	
   

  
	
   

  
	
  CAISSE
  DE DÉPÔT ET PLACEMENT DU QUÉBEC

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Sylvain Gareau

  	
   

  	
  By:

  	
  /s/ Frédéric Godbout

  	
   

  
	
  Name:

  	
  Sylvain Gareau

  	
   

  	
  Name:

  	
  Frédéric Godbout

  	
   

  
	
  Title:

  	
  Vice President Venture Capital

  	
   

  	
  Title:

  	
  Investment Manager

  	
   

  
											

 

29Exhibit 10.2

 

AMENDMENT NO. 5 TO

CREDIT AGREEMENT

 

THIS
AMENDMENT NO. 5 TO CREDIT AGREEMENT (“Amendment”) is dated as of March 31,
2006  and is entered into by and between AVIZA, INC.,
a Delaware corporation, formerly known as Aviza Technology, Inc. (the “Borrower”)
and BANK OF AMERICA, N.A. (the “Lender”). All capitalized terms used
herein but not otherwise defined shall have the meanings ascribed to them in
the Credit Agreement (as hereinafter defined).

 

WITNESSETH

 

WHEREAS,
the Borrower and the Lender have entered into that certain Credit Agreement
dated as of August 6, 2004, as amended by that certain Amendment No. 1
to Credit Agreement dated as of September 23, 2004, that certain Amendment
No. 2 to Credit Agreement dated as of February 23, 2005, that certain
Amendment No. 3 to Credit Agreement dated as of September 26, 2005,
and that certain Amendment No. 4 to Credit Agreement dated as of December 1,
2005 (collectively referred to herein as the “Credit Agreement”); and

 

WHEREAS,
certain Events of Default have occurred as a result of the Borrower’s failure
to maintain an Adjusted Tangible Net Worth as set forth in Section 7.24 of
the Credit Agreement (prior to the amendment of such Section pursuant to
this Amendment) for the measurement period ending on March 31, 2006
(collectively referred to herein as “Existing Events of Default”); and

 

WHEREAS,
the Borrower has requested that the Lender amend the Credit Agreement as set
forth herein and waive the Existing Events of Default, and the Lender is
willing to do so subject to the terms and conditions stated herein;

 

NOW,
THEREFORE, in consideration of the premises herein contained and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Lender and  the
Borrower hereby agree as follows:

 

I.                                        Amendments
to the Agreement. The Lender and Borrower agree that the Credit Agreement
shall be amended as follows:

 

A.                                    Definitions.

 

1.                                      Adjusted Tangible Net Worth. Section 7.24 of the Credit Agreement is
hereby amended and restated in its entirety as follows:

 

“7.24                  Adjusted
Tangible Net Worth. Aviza Technology, Inc. will maintain a consolidated
Adjusted Tangible Net Worth determined on the last day of each of the months during
each period described below of not less than the amount set forth opposite such
period:

 

1

 

	
  Period

  	
   

  	
  Minimum

  Adjusted Tangible

  Net Worth

  	
   

  
	
  January 1, 2006 through March 31,
  2006

  	
   

  	
  $

  	
  7,100,000

  	
   

  
	
  April 1, 2006 through June 30,
  2006

  	
   

  	
  $

  	
  20,400,000

  	
   

  
	
  July 1, 2006 through September 30,
  2006

  	
   

  	
  $

  	
  17,300,000

  	
   

  
	
  October 1, 2006 through December 31,
  2006

  	
   

  	
  $

  	
  16,300,000

  	
   

  
	
  January 1, 2007 through March 31,
  2007

  	
   

  	
  $

  	
  23,600,000

  	
   

  
	
  April 1, 2007 through June 30,
  2007

  	
   

  	
  $

  	
  27,300,000

  	
   

  
	
  July 1, 2007 through September 30,
  2007

  	
   

  	
  $

  	
  33,000,000”

  	
   

  

 

II.                                   Waiver
of Existing Event of Default. Lender hereby waives the Existing Events of
Default. The waiver of the Existing Events of Default as set forth herein shall
be limited precisely as written and shall not be deemed to (a) be a waiver
or modification of any other term or condition of the Credit Agreement, or (b) prejudice
any right or remedy which Lender may now have or may have in the
future (except to the extent such right or remedy is based upon the Existing
Events of Default) under or in connection with the Credit Agreement.

 

III.                              Consent
to Stock Purchase. Borrower has informed Lender that Aviza Technology, Inc.
(the “Parent”) plans to issue and sell approximately 3,300,000 newly
issued shares of Parent’s common stock, par value $0.0001 per share (the “Common
Stock”), pursuant to the terms and conditions set forth in that certain
Stock Purchase Agreement (the “Purchase Agreement”) by and between
Parent and Caisse de dépôt et placement du Québec, a body organized under the
laws of the Province of Québec (the “Stock Purchase”). Borrower has
asked for Lender to consent to the Stock Purchase. Lender hereby consents to
the Stock Purchase subject to the following terms:

 

A.                                    Lender has received
and approved a copy of the fully executed Purchase Agreement and any documents
related thereto; and

 

B.                                    Borrowers’
representation and warranty (as evidenced by executing this Amendment) that,
immediately before and after consummation of the Stock Purchase, there exists
no Event of Default or other breach of any representation, warranty, or
covenant in the Credit Agreement or the Loan Documents, except to the extent
specifically consented to by Lender hereunder.

 

IV.                               Conditions.
The effectiveness of this Amendment is subject to the satisfaction of the
following conditions precedent:

 

A.                                    Amendment. Fully
executed copies of this Amendment and the consent attached hereto signed by the
Borrower or the Guarantors as necessary, and delivered to Lender.

 

2

 

B.                                    Other Documents.
Borrower shall have executed and delivered to Lender such other documents and
instruments as Lender may reasonably require.

 

V.                                    Miscellaneous.

 

A.                                    Survival of
Representations and Warranties. All representations and warranties made in
the Credit Agreement or any other document or documents relating thereto,
including, without limitation, any Loan Document furnished in connection with
this Amendment, shall survive the execution and delivery of this Amendment and
the other Loan Documents, and no investigation by Lender shall affect the
representations and warranties or the right of Lender to rely thereon.

 

B.                                    Reference to
Credit Agreement. The Credit Agreement, each of the Loan Documents, and any
and all other agreements, documents or instruments now or hereafter executed
and delivered pursuant to the terms hereof, or pursuant to the terms of the
Credit Agreement as amended hereby, are hereby amended so that any reference
therein to the Credit Agreement shall mean a reference to the Credit Agreement
as amended hereby.

 

C.                                    Credit Agreement
Remains in Effect. The Credit Agreement and the Loan Documents, as amended
hereby, remain in full force and effect and the Borrower ratify and confirm its
agreements and covenants contained therein. The Borrower hereby confirms that
no Event of Default or Default other than the Existing Events of Default
exists.

 

D.                                    Severability.
Any provision of this Amendment held by a court of competent jurisdiction to be
invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provision so held to
be invalid or unenforceable.

 

E.                                     APPLICABLE LAW.
THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF CALIFORNIA.

 

F.                                      Successors and
Assigns. This Amendment is binding upon and shall inure to the benefit of
the Lender and Borrower and their respective successors and assigns; provided,
however, that Borrower may not assign or transfer any of their rights or
obligations hereunder without the prior written consent of the Lender.

 

G.                                    Counterparts.
This Amendment may be executed in one or more counterparts, each of which
when so executed shall be deemed to be an original, but all of which when taken
together shall constitute one and the same instrument.

 

H.                                   Headings. The
headings, captions and arrangements used in this Amendment are for convenience
only and shall not affect the interpretation of this Amendment.

 

I.                                        NO ORAL
AGREEMENTS. THIS AMENDMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS AS
WRITTEN, REPRESENTS THE FINAL AGREEMENT BETWEEN THE LENDER AND THE BORROWER AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL

 

3

 

AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN LENDER AND BORROWER.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

4

 

IN WITNESS WHEREOF, the parties have executed this Amendment under seal
on the date first written above.

 

	
   

  	
  AVIZA, INC.,

  
	
   

  	
  a Delaware corporation, formerly

  
	
   

  	
  known as Aviza Technology, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick C. O’Connor

  	
   

  
	
   

  	
  Name:

  	
  Patrick C. O’Connor

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President and Chief

  	
   

  
	
   

  	
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen King

  	
   

  
	
   

  	
  Name:

  	
  Stephen King

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
								

 

5

 

Each
of  the undersigned has executed a separate
Continuing Guaranty (collectively referred to herein as the “Continuing
Guaranty”) respecting the obligations of Aviza, Inc., a Delaware
corporation, formerly known as Aviza Technology, Inc. (“Borrower”)
owing to Bank of America, N.A. (“Lender”), as set forth in that certain Credit
Agreement dated as of August 6, 2004. Each of the  undersigned acknowledges the terms of the
above Amendment and reaffirms and agrees that: its respective Continuing
Guaranty remains in full force and effect; nothing in any Continuing Guaranty
obligates Lender to notify the undersigned of any changes in the financial
accommodations made available to Borrower or to seek reaffirmations of any Continuing
Guaranty; and no requirement to so notify the undersigned or to seek
reaffirmations in the future shall be implied by the execution of this
reaffirmation.

 

	
   

  	
  AVIZA TECHNOLOGY INTERNATIONAL, INC.,
a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick C. O'Connor

  	
   

  
	
   

  	
  Name:

  	
   Patrick C. O'Connor

  	
   

  
	
   

  	
  Title

  	
  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VANTAGEPOINT VENTURE PARTNERS IV, L.P.,
a Delaware
  limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan E. Salzman

  	
   

  
	
   

  	
  Name:

  	
  Alan E. Salzman

  	
   

  
	
   

  	
  Title

  	
  Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VANTAGEPOINT VENTURE PARTNERS IV (Q), L.P.,
a Delaware
  limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan E. Salzman

  	
   

  
	
   

  	
  Name:

  	
  Alan E. Salzman

  	
   

  
	
   

  	
  Title

  	
  Managing Member

  	
   

  
						

 

6

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