Document:

Exhibit 10.26

 

AVIZA TECHNOLOGY, INC.

DEFERRED COMPENSATION PLAN

 

 

Effective as of January 1, 2004

 

 

AVIZA TECHNOLOGY, INC.

DEFERRED COMPENSATION PLAN

 

Effective as of January 1, 2004

 

TABLE OF CONTENTS

 

	
   

  	
  ARTICLE 1

  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  ACCOUNT

  	
  1

  
	
  1.2

  	
  BENEFICIARY

  	
  1

  
	
  1.3

  	
  BOARD

  	
  1

  
	
  1.4

  	
  CHANGE IN CONTROL

  	
  1

  
	
  1.5

  	
  CODE

  	
  2

  
	
  1.6

  	
  COMMITTEE

  	
  2

  
	
  1.7

  	
  COMPENSATION

  	
  2

  
	
  1.8

  	
  COMPENSATION DEFERRAL ACCOUNT

  	
  2

  
	
  1.9

  	
  COMPENSATION DEFERRALS

  	
  2

  
	
  1.10

  	
  DESIGNATION DATE

  	
  2

  
	
  1.11

  	
  EFFECTIVE DATE

  	
  2

  
	
  1.12

  	
  ELIGIBLE EMPLOYEE

  	
  2

  
	
  1.13

  	
  EMPLOYER

  	
  4

  
	
  1.14

  	
  EMPLOYER CONTRIBUTION CREDIT ACCOUNT

  	
  4

  
	
  1.15

  	
  EMPLOYER CONTRIBUTION CREDITS

  	
  4

  
	
  1.16

  	
  ENTRY DATE

  	
  4

  
	
  1.17

  	
  ERISA

  	
  4

  
	
  1.18

  	
  PARTICIPANT

  	
  4

  
	
  1.19

  	
  PARTICIPANT ENROLLMENT AND ELECTION FORM

  	
  4

  
	
  1.20

  	
  PLAN

  	
  4

  
	
  1.21

  	
  PLAN YEAR

  	
  4

  
	
  1.22

  	
  TRUST

  	
  4

  
	
  1.23

  	
  TRUSTEE

  	
  4

  
	
  1.24

  	
  VALUATION DATE

  	
  4

  
	
  1.25

  	
  YEAR(S) OF SERVICE

  	
  5

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 2

  ELIGIBILITY AND PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  REQUIREMENTS

  	
  5

  
	
  2.2

  	
  RE-EMPLOYMENT

  	
  5

  
	
  2.3

  	
  CHANGE OF EMPLOYMENT CATEGORY

  	
  6

  

 

i

 

	
   

  	
  ARTICLE 3

  CONTRIBUTIONS AND CREDITS

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  PARTICIPANT COMPENSATION DEFERRALS

  	
  6

  
	
  3.2

  	
  EMPLOYER CONTRIBUTION CREDITS

  	
  7

  
	
  3.3

  	
  CONTRIBUTIONS TO THE TRUST

  	
  8

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 4

  ALLOCATION OF FUNDS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  ALLOCATION OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS

  	
  8

  
	
  4.2

  	
  ACCOUNTING FOR DISTRIBUTIONS

  	
  8

  
	
  4.3

  	
  SEPARATE BOOKKEPPING ACCOUNTS

  	
  9

  
	
  4.4

  	
  INTERIM VALUATIONS

  	
  9

  
	
  4.5

  	
  DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS

  	
  9

  
	
  4.6

  	
  PAYMENT OF TAXES AND EXPENSES

  	
  10

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 5

  ENTITLEMENT TO BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  TERMINATION OF EMPLOYMENT

  	
  10

  
	
  5.2

  	
  FIXED PAYMENT DATES

  	
  10

  
	
  5.3

  	
  IMMEDIATE DISTRIBUTION ELECTION

  	
  11

  
	
  5.4

  	
  HARDSHIP
  DISTRIBUTIONS

  	
  11

  
	
  5.5

  	
  CHANGE
  IN CONTROL

  	
  11

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 6

  DISTRIBUTION OF BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  AMOUNT

  	
  12

  
	
  6.2

  	
  METHOD OF PAYMENT

  	
  12

  
	
  6.3

  	
  DEATH
  BENEFITS

  	
  13

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 7

  BENEFICIARIES; PARTICIPANT DATA

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  DESIGNATION OF BENEFICIARIES

  	
  13

  
	
  7.2

  	
  INFORMATION TO BE FURNISHED BY PARTICIPANTS
  AND BENEFICIARIES; INABILITY TO LOCATE PARTICIPANTS OR BENEFICIARIES

  	
  13

  

 

ii

 

	
   

  	
  ARTICLE 8

  ADMINISTRATION AND RECORDKEEPING

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  ADMINISTRATIVE AND RECORDKEEPING AUTHORITY

  	
  14

  
	
  8.2

  	
  UNIFORMITY OF DISCRETIONARY ACTS

  	
  14

  
	
  8.3

  	
  LITIGATION

  	
  14

  
	
  8.4

  	
  CLAIMS PROCEDURE

  	
  14

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 9

  AMENDMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  RIGHT
  TO AMEND

  	
  16

  
	
  9.2

  	
  AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN

  	
  17

  
	
  9.3

  	
  CHANGES IN LAW AFFECTING TAXABILITY

  	
  17

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 10

  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  EMPLOYER’S RIGHT TO TERMINATE OR SUSPEND PLAN

  	
  17

  
	
  10.2

  	
  AUTOMATIC
  TERMINATION OF PLAN

  	
  18

  
	
  10.3

  	
  SUSPENSION
  OF DEFERRALS

  	
  18

  
	
  10.4

  	
  ALLOCATION AND DISTRIBUTION

  	
  18

  
	
  10.5

  	
  SUCCESSOR TO EMPLOYER

  	
  18

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 11

  THE TRUST

  	
   

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  ESTABLISHMENT OF TRUST

  	
  18

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 12

  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  LIMITATIONS ON LIABILITY OF EMPLOYER

  	
  18

  
	
  12.2

  	
  CONSTRUCTION

  	
  19

  
	
  12.3

  	
  SPENDTHRIFT
  PROVISION

  	
  19

  
	
  12.4

  	
  TAX WITHHOLDING

  	
  20

  

 

iii

 

AVIZA TECHNOLOGY, INC.

DEFERRED COMPENSATION PLAN

 

Effective as of January 1, 2004

 

RECITALS

 

This Aviza Technology, Inc. Deferred Compensation Plan (the “Plan”)
is adopted by Aviza Technology, Inc. (the “Employer”) for certain of its
executive employees.  The purpose of the
Plan is to offer participants an opportunity to elect to defer the receipt of
compensation in order to provided deferred compensation benefits taxable
pursuant to section 451 of the Internal Revenue Code of 1986, as amended
(the “Code”), and, if and when the Employer discretionary contribution feature
of the Plan is activated, to provide a vehicle to which the Employer may credit
certain Employer-funded benefits on behalf of participants.  The Plan is intended to be a “top-hat plan”
(i.e., an unfunded deferred compensation plan maintained for a select group of
management or highly compensated employees) pursuant to sections 201(2), 301(a)(3) and
401(a)(1) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”).

 

Accordingly, the following Plan is adopted.

 

ARTICLE 1

DEFINITIONS

 

1.1                                 ACCOUNT
means the balance credited to a Participant’s Plan account, including amounts
credited under the Compensation Deferral Account and the Employer Contribution
Credit Account.  A Participant’s Account
shall be determined as of the date of reference.

 

1.2                                 BENEFICIARY
means any person or person so designated in accordance with the provisions of Article 7.

 

1.3                                 BOARD
means the Board of Directors of the Employer.

 

1.4                                 CHANGE
IN CONTROL means a transaction or series occurring after the Effective
Date, in which (i) any individual, firm, corporation or other entity, or
any group (as defined in Section 13(d)(3) or the Securities Exchange
Act of 1934 (the “Act”)), becomes, directly or indirectly, the beneficial owner
(as defined in the general rules and regulations of the Securities and
Exchange Commission with respect to Sections 13(d) and 13(g) of the
Act) of more than fifty percent (50%) of the then outstanding shares of the
Employer’s capital stock entitled to vote generally in the election of directors
of the Employer; or (ii) the stockholders of the Employer approve a
definitive agreement for (A) the merger or other business combination of
the Employer with or into another corporation pursuant to which the
stockholders of the Employer do not own, immediately after the transaction,
more than fifty percent (50%) of the voting power of the corporation that
survives and is a publicly owned corporation and not a subsidiary of another
corporation, or (B) the sale, exchange or other disposition of all or
substantially all of the assets of the Employer; or (iii) during any
period of two (2) years or less, individuals who at the beginning of such
period constituted the Board cease for any reason to 

 

1

 

constitute at least a majority
thereof, unless the election, or the nomination for election by the
stockholders of the Employer, of each new director was approved by a vote of at
least seventy-five percent (75%) of the directors then still in office who were
directors at the beginning of the period. 
Notwithstanding the foregoing, an initial public offering or similar
event or transaction shall not constitute a Change in Control.

 

1.5           CODE
means the Internal Revenue Code of 1986 and the regulations thereunder, as
amended from time to time.

 

1.6           COMMITTEE
means the committee appointed by the Employer’s Chief Executive Officer to
designate Eligible Employees pursuant to Section 1.12 and to perform
certain other functions in respect of the Plan, as described herein.

 

1.7           COMPENSATION
means base salary, bonus awards (including individual incentive awards),
commissions and broad-based incentive plan awards, as applicable, paid by the
Employer to an Eligible Employee with respect to his or her service for the
Employer (as determined by the Employer, in its discretion).

 

1.8           COMPENSATION
DEFERRAL ACCOUNT is defined in Section 3.1.

 

1.9           COMPENSATION
DEFERRALS are defined in Section 3.1.

 

1.10         DESIGNATION
DATE means the date or dates as of which a designation of deemed
investment directions by an individual pursuant to Section 4.5, or any
change in a prior designation of deemed investment directions by an individual
pursuant to Section 4.5, shall become effective.  The Designation Dates in any Plan Year shall
be designated by the Employer.

 

1.11         EFFECTIVE
DATE  means the effective date of the Plan, which shall be January 1,
2004.

 

1.12         ELIGIBLE
EMPLOYEE means, for any Plan Year (or applicable portion thereof),
any person employed by the Employer who is determined by the Employer to be a
member of a select group of management or highly compensated employees of the
Employer (within the meaning of ERISA) and who:  (i) holds the position of Director or
above, (ii) is otherwise designated by the Committee, or (iii) qualifies
as a “Grandfathered Employee” (as described below).

 

For purposes of this Section, an employee of the Employer who
participated in the ASML Holding US, Inc. Deferred Compensation Plan
immediately prior to becoming an employee of the Employer shall qualify as a “Grandfathered
Employee” for the Plan’s initial Plan Year if he or she elects during the Plan’s
initial enrollment period (as established by the Employer) to defer
Compensation under the Plan for the Plan’s initial Plan Year in accordance with
Article 3.  Any employee of the
Employer who qualifies as a Grandfathered Employee for the Plan’s initial Plan
Year shall continue to qualify as a Grandfathered Employee for each subsequent
Plan Year only if he or she continues to defer Compensation under the Plan for
each such subsequent Plan Year in accordance with Article 3.  Any Grandfathered Employee who fails to defer
Compensation under 

 

2

 

the Plan for any Plan Year shall cease to be a Grandfathered Employee
for such Plan Year and for 

 

3

 

all Plan Years thereafter and shall therefore cease to qualify as an
Eligible Employee unless and until he or she satisfies the eligibility
requirements described in (i) or (ii) of the preceding paragraph.

 

1.13                           EMPLOYER
means Aviza Technology, Inc. and its successors and assigns unless
otherwise herein provided, or any other corporation or business organization
which, with the consent of Aviza Technology, Inc., or its successors or
assigns, assumes the Employer’s obligations hereunder, or any other corporation
or business organization which agrees, with the consent of Aviza Technology, Inc.,
to become a party to the Plan.

 

1.14                           EMPLOYER
CONTRIBUTION CREDIT ACCOUNT is defined Section 3.2.

 

1.15                           EMPLOYER
CONTRIBUTION CREDITS is defined in Section 3.2.

 

1.16                           ENTRY
DATE means the first day of the pay period following the date on
which an individual becomes an Eligible Employee and satisfies the requirements
for participation as provided in Section 2.1.

 

1.17                           ERISA
means the Employee Retirement Income Security Act of 1974, as amended from time
to time.

 

1.18                           PARTICIPANT
means any person so designated in accordance with the provisions of Article 2,
including, where appropriate according to the context of the Plan, any former
employee who is or may become (or whose Beneficiaries may become) eligible to
receive a benefit under the Plan.

 

1.19                           PARTICIPANT
ENROLLMENT AND ELECTION FORM means the form or forms
pursuant to which a Participant elects to defer Compensation hereunder and on
which the Participant makes certain other designations as required
thereon.  Participant elections and
designations made pursuant to a Participant Enrollment and Election Form shall
be in writing and/or, as required or permitted by the Employer, shall be by
oral designation and/or electronic transmission designation.

 

1.20                           PLAN
means this Aviza Technology, Inc. Deferred Compensation Plan, as amended
from time to time.

 

1.21                           PLAN
YEAR means the twelve (12) month period ending on the December 31
of each year during which the Plan is in effect.

 

1.22                           TRUST
means the trust fund, if any, established pursuant to Article 11.

 

1.23                           TRUSTEE
means the trustee named in the agreement establishing the Trust and such
successor and/or additional trustees as may be named pursuant to the terms of
the agreement establishing the Trust.

 

1.24                           VALUATION
DATE means the last day of each Plan Year and any other date
that the Employer, in its sole discretion, designates as a Valuation Date.

 

4

 

1.25         YEAR(S) OF SERVICE,
with respect to any Participant, means the number of whole years of employment
for the Employer, commencing on the Participant’s date of hire (or re-hire, if
applicable), whether or not such whole years of employment are completed
consecutively.

 

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

 

2.1           REQUIREMENTS.  Every Eligible Employee on the Effective Date
shall be eligible to become a Participant on the Effective Date by making an
election on or prior to December 31, 2003, in accordance with the
procedures established by the Employer, to defer Compensation under the Plan
for the Plan’s initial Plan Year.  Every
other Eligible Employee shall be eligible to become a Participant on the first
Entry Date occurring on or after the date on which he or she becomes an
Eligible Employee and completes the enrollment requirements described
below.  No individual shall become a
Participant, however, if he or she is not an Eligible Employee on the date his
or her participation is to begin.

 

(a)           Compensation
Deferral Enrollment Requirements. 
Enrollment in the Compensation Deferral Account portion of the Plan is
voluntary.  In order to enroll in the
Compensation Deferral Account portion of the Plan, an otherwise Eligible
Employee must make an election to defer Compensation in accordance with the
procedures established by the Employer.

 

Generally, an individual will be notified by the Committee on or prior
to December 1 if he or she is an Eligible Employee with respect to the
upcoming Plan Year, in which case, in order to enroll in the Compensation
Deferral Account portion of the Plan for such upcoming Plan Year, the Eligible
Employee must make a Compensation Deferral election during the period beginning
on the December 1 and ending on the December 31 preceding such
upcoming Plan Year, or during such other period established by the
Employer.  If the Committee determines
that an individual first becomes an Eligible Employee during a Plan Year, the
Committee shall notify such individual of that determination and of the date
during the Plan Year on which the individual shall become an Eligible Employee,
in which case, in order to enroll in the Compensation Deferral Account portion
of the Plan for the remainder of such Plan Year, such individual must make a
Compensation Deferral election during the thirty (30) day period beginning on
the date such individual is notified of his or her eligibility, or during such
other period established by the Employer; if he or she does not so elect, the
individual shall not be eligible to enroll in the Compensation Deferral Account
portion of the Plan until the following Plan Year, and only if he or she
continues to be an Eligible Employee as of the first day of that following Plan
Year.

 

(b)           Employer
Contribution Credit Enrollment Requirements. Enrollment in the Employer
Contribution Credit Account portion of the Plan, if and when it is activated by
the Committee, is automatic for all Eligible Employees on behalf of whom
Employer Contribution Credits are made.

 

2.2           RE-EMPLOYMENT.  If a Participant whose employment with the
Employer is terminated is subsequently re-employed with the Employer, he or she
shall again become a Participant in accordance with the provisions of Section 2.1,
in which case any installment 

 

5

 

distributions which he or she was receiving under the Plan pursuant the
original termination of employment shall be suspended and his or her vested
Plan Account (including any undistributed amounts credited prior to his or her
original termination of employment and any amounts credited following his or
her re-employment) shall become payable in accordance with the other Sections
of this Plan.

 

2.3           CHANGE
OF EMPLOYMENT CATEGORY. 
During any period in which a Participant remains in the employ of the
Employer, but ceases to be an Eligible Employee, he or she shall not be
eligible to make Compensation Deferrals or to be credited with Employer
Contribution Credits hereunder.

 

ARTICLE 3

CONTRIBUTIONS AND CREDITS

 

3.1           PARTICIPANT
COMPENSATION DEFERRALS. 
In accordance with rules established by the Employer, a Participant
may elect to defer for each Plan Year Compensation which is not yet payable to
the Participant, in any fixed periodic dollar amounts or percentages designated
by the Participant, subject to the minimum and maximum deferral requirements
described below.  Amounts so deferred
will be considered a Participant’s “Compensation Deferrals”.

 

Compensation Deferrals shall be made through
regular payroll deductions, or, as applicable, through an election by the
Participant to defer the payment of a bonus award/individual incentive award,
commission and/or broad-based incentive plan award not yet payable to him or
her at the time of the election.  Subject
to Section 12.4, Compensation Deferrals shall be deducted by the Employer
from the pay of a deferring Participant and shall be credited to the Account of
the deferring Participant.

 

The minimum aggregate amount of Compensation
Deferrals which a Participant may elect to defer to the Plan for any given Plan
Year is five thousand dollars ($5,000) (two thousand five hundred dollars
($2,500) for the Participant’s first Plan Year of participation, if the
Participant became an Eligible Employee on or after July 1 of such Plan
Year).  In addition, for any Plan Year, a
Participant may elect to defer, as his or her Compensation Deferrals, no more
than the following maximum percentages of each of the following types of
Compensation, subject to Section 12.4: 

 

	
  Compensation Type

  	
   

  	
  Maximum Percentage

  	
   

  
	
  Base salary

  	
   

  	
  85

  	
  %

  
	
  Commissions

  	
   

  	
  85

  	
  %

  
	
  Bonus awards (including individual
  incentive awards)

  	
   

  	
  100

  	
  %

  
	
  Broad-based incentive plan awards

  	
   

  	
  100

  	
  %

  

 

In connection with a Participant’s enrollment in the Compensation
Deferral Account portion of the Plan pursuant to Section 2.1, the
Participant shall make a Compensation Deferral election for the upcoming Plan
Year (or for the remainder thereof, in the case of an individual who becomes an
Eligible Employee during a Plan Year). 
For each succeeding Plan 

 

6

 

Year, the Participant again shall make an affirmative Compensation
Deferral election in accordance with Section 2.1 in order to a defer
Compensation under the Plan for that Plan Year. If no such Compensation
Deferral election is timely made for a Plan Year, the Participant shall be
deemed to have elected not to defer any Compensation under the Plan for that
Plan Year.

 

Notwithstanding the preceding, a Participant may change his or her
Compensation Deferral amount with respect to a Plan Year as of, and by written
notice delivered to the Employer prior to, the beginning of any calendar
quarter during that Plan Year, with such change being first effective for
Compensation payments to be payable in that calendar quarter and continuing to
be effective for the remainder of the Plan Year (unless changed again in a
subsequent calendar during that Plan Year). 
Further, a Participant may entirely revoke any Compensation Deferral
election at any time during a Plan year with respect to amounts not yet due to
be paid by the Employer.

 

There shall be established and maintained by the Employer a separate
Compensation Deferral Account in the name of each Participant to which shall be
credited or debited, as applicable, (a) amounts equal to the Participant’s
Compensation Deferrals; (b) amounts equal to any deemed earnings or losses
(to the extent realized, based upon deemed fair market value of the Account’s
deemed assets, as determined by the Employer, in its discretion) attributable
or allocable thereto; and (c) any expenses and/or taxes charged to that
Account.

 

A Participant shall at all times be 100% vested in amounts credited to
his or her Compensation Deferral Account.

 

3.2                                 EMPLOYER
CONTRIBUTION CREDITS. 
If and when the Committee elects to activate the Employer Contribution
Credit feature of the Plan, there shall be established and maintained a
separate Employer Contribution Credit Account in the name of each Participant
to which shall be credited or debited, as applicable, (a) amounts equal to
the Employer’s Contribution Credits credited to that Account; (b) amounts
equal to any deemed earnings and losses (to the extent realized, based upon
deemed fair market value of the Account’s deemed assets as determined by the
Employer, in its discretion) allocated to that Account; and (c) any
expenses and/or taxes charged to that Account.

 

A Participant’s Employer Contribution Credits credited to his or her
Employer Contribution Credit Account for a particular Plan Year shall be an
amount (if any) determined by the Committee, in its discretion.  The Employer shall credit such contributions
on behalf of such individuals, in such amounts and with such frequency, as the
Committee determines, in its sole discretion.

 

A Participant shall become vested in amounts credited to his or her Employer
Contribution Credit Account according to the vesting schedule to be
adopted by the Committee, in its sole discretion, provided, however, that a
Participant shall become fully vested in amounts (if any) credited to his or
her Employer Contribution Credit Account upon the occurrence during the
Participant’s employment with the Employer of a Change in Control of the
Employer.

 

7

 

3.3           CONTRIBUTIONS
TO THE TRUST.  An
amount shall be contributed by the Employer to the Trust maintained under Section 11.1
equal to the amount(s) required to be credited to the Participant’s Account
under Sections 3.1 and 3.2.  The Employer
shall contribute the amounts referred to in Section 3.1 to the Trust as
soon as is practicable after the pay periods to which they relate.  The Employer shall contribute the amounts
referred to in Section 3.2 to the Trust as soon as practicable following
the date(s) on which the contribution credit amount(s) are determined.

 

ARTICLE 4

ALLOCATION OF FUNDS

 

4.1           ALLOCATION
OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS. Pursuant to Section 4.5,
each Participant shall have the right to direct the Employer as to how amounts
in his or her Plan Account shall be deemed to be invested in the deemed
investment options made available under the Plan.  Subject to such limitations as may from time
to time be required by law, imposed by the Employer or the Trustee or contained
elsewhere in the Plan, and subject to such operating rules and procedures
as may be imposed from time to time by the Employer, prior to the date on which
a direction will become effective, the Participant shall have the right to
direct the Employer as to how amounts in his or her Account shall be deemed to
be invested. The Employer shall direct the Trustee to invest the account
maintained in the Trust on behalf of the Participant pursuant to the deemed
investment directions the Employer properly has received from the Participant.

 

The value of the Participant’s Account shall be equal to the value of
the account maintained under the Trust on behalf of the Participant. As of each
valuation date of the Trust, the Participant’s Account will be credited or
debited to reflect the Participant’s deemed investments of the Trust.  The Participant’s Plan Account will be
credited or debited with the increase or decrease in the realizable net asset
value or credited interest, as applicable, of the designated deemed
investments, as follows.  As of each
Valuation Date, an amount equal to the net increase or decrease in realizable
net asset value or credited interest, as applicable (as determined by the
Trustee), of each deemed investment option within the Account since the
preceding Valuation Date shall be allocated among all Participants’ Accounts
deemed to be invested in that investment option in accordance with the ratio
which the portion of the Account of each Participant which is deemed to be
invested within that investment option, determined as provided herein, bears to
the aggregate of all amounts deemed to be invested within that investment
option.

 

4.2           ACCOUNTING
FOR DISTRIBUTIONS.  As
of the date of any distribution hereunder, the distribution made hereunder to a
Participant or his or her Beneficiary or Beneficiaries shall be charged to such
Participant’s Account.  Such amounts
shall be charged on a pro rata basis against the investment options in which
the Participant’s Account is deemed to be invested.

 

8

 

4.3           SEPARATE
BOOKKEEPING ACCOUNTS. 
A separate bookkeeping account under the Plan shall be established and
maintained by the Employer to reflect the Account for each Participant, with
bookkeeping sub-accounts to show separately the Participant’s Compensation
Deferral Account and the Participant’s Employer Contribution Credit
Account.  Each sub-account will
separately account for the credits and debits described in Article 3.

 

4.4           INTERIM
VALUATIONS.  If it is
determined by the Employer that the value of a Participant’s Account as of any
date on which distributions are to be made differs materially from the value of
the Participant’s Account on the prior Valuation Date upon which the
distribution is to be based, the Employer, in its discretion, shall have the
right to designate any date in the interim as a Valuation Date for the purpose
of revaluing the Participant’s Account so that the Account will, prior to the
distribution, reflect its share of such material difference in value.

 

4.5           DEEMED
INVESTMENT DIRECTIONS OF PARTICIPANTS.  Subject to such limitations as may from time
to time be required by law, imposed by the Employer or the Trustee or contained
elsewhere in the Plan, and subject to such operating rules and procedures
as may be imposed from time to time by the Employer, prior to and effective for
each Designation Date, each Participant may communicate to the Employer a
direction (in accordance with (a), below) as to how his or her Plan Accounts
should be deemed to be invested among such categories of deemed investments as
may be made available by the Employer hereunder.  Such direction shall designate the percentage
(in any whole percent multiples) of each portion of the Participant’s Plan
Accounts which is requested to be deemed to be invested in such categories of
deemed investments, and shall be subject to the following rules:

 

(a)                                  Any
initial or subsequent deemed investment direction shall be in writing, on a
form supplied by and filed with the Employer, and/or, as required or permitted
by the Employer, shall be by oral designation and/or electronic transmission
designation.  A designation shall be
effective as of the Designation Date next following the date the direction is
received and accepted by the Employer on which it would be reasonably
practicable for the Employer to effect the designation.

 

(b)                                 All
amounts credited to the Participant’s Account shall be deemed to be invested in
accordance with the then effective deemed investment direction, and as of the
Designation Date with respect to any new deemed investment direction, all or a
portion of the Participant’s Account at that date shall be reallocated among
the designated deemed investment options according to the percentages or
amounts specified in the new deemed investment direction unless and until a
subsequent deemed investment direction shall be filed and become
effective.  An election concerning deemed
investment choices shall continue indefinitely as provided in the Participant’s
most recent Participant Enrollment and Election Form, or other form specified
by the Employer.

 

(c)                                  If
the Employer receives an initial or revised deemed investment direction which
it deems to be incomplete, unclear or improper, the Participant’s investment
direction then in effect shall remain in effect (or, in the case of a
deficiency in an initial deemed investment direction, the Participant shall be
deemed to have filed no deemed investment direction) until the next Designation
Date, unless the Employer provides for, and permits the application of,
corrective action prior thereto.

 

9

 

(d)                                 If
the Employer possesses (or is deemed to possess as provided in (c), above) at
any time directions as to the deemed investment of less than all of a
Participant’s Account, the Participant shall be deemed to have directed that
the undesignated portion of the Account be deemed to be invested in a money
market, fixed income or similar fund made available under the Plan as
determined by the Employer in its discretion.

 

(e)                                  Each
Participant hereunder, as a condition to his or her participation hereunder,
agrees to indemnify and hold harmless the Employer and its agents and
representatives from any losses or damages of any kind relating to the deemed
investment of the Participant’s Account hereunder.

 

(f)                                    Each
reference in this Section to a Participant shall be deemed to include,
where applicable, a reference to a Beneficiary.

 

4.6           PAYMENT
OF TAXES AND EXPENSES. 
Expenses, including Trustee fees, associated with the administration or
operation of the Plan shall be paid by the Employer, unless, in the discretion
of the Employer, the Employer elects to charge such expenses against the
appropriate Participant’s Account or Participants’ Accounts.  Any taxes (or net operating loss reductions)
allocable to an Account (or portion thereof) maintained under the Plan which
arise prior to the complete distribution of the Account, shall be absorbed by
the Employer, unless, in the discretion of the Employer, the Employer elects to
charge such taxes against the appropriate Participant’s Account or Participants’
Accounts.

 

ARTICLE 5

ENTITLEMENT TO BENEFITS

 

5.1           TERMINATION
OF EMPLOYMENT.  Upon a
Participant’s termination of employment with the Employer for any reason, the
Participant’s as-yet undistributed vested Account shall be valued and payable
according to the provisions of Article 6.

 

5.2           FIXED
PAYMENT DATES.  On his
or her Participant Enrollment and Election Form, a Participant may select a
fixed payment date for the payment of his or her Compensation Deferral Account
(or the Participant may select fixed payment dates for the payment of portions,
expressed in 25% increments, of his or her Compensation Deferral Account),
which will be valued and payable according to the provisions of Article 6.  Any such fixed payment date elected by a
Participant must be a January 1st that is no earlier than the January 1st
of the fourth calendar year after the calendar year in which the election is
made.  Any such fixed payment date may be
extended to a later January 1st fixed payment date, so long as
the election to so extend the fixed payment date is made by the Participant at
least six (6) months prior to the date on which the distribution is to be
made and such extension is at least two (2) full calendar years in
length.  In no event may a fixed payment
date elected hereunder be accelerated, except as provided in Section 5.3
(relating to immediate distributions with a ten percent (10%) penalty), Section 5.4
(relating to hardship distributions) or Section 5.5 (relating to
distributions upon a Change in Control).

 

Notwithstanding the preceding, a Participant who selects payment of his
or her Compensation Deferral Account (or portions thereof) on a fixed date or
dates shall receive 

 

10

 

payment of his or her Compensation Deferral Account at the earlier of
such fixed payment date or dates (as extended, if applicable) or his or her
termination of employment with the Employer.

 

5.3           IMMEDIATE
DISTRIBUTION ELECTION. 
A Participant (including any former Eligible Employee who has not yet
received a complete distribution of his or her vested Account) may elect at any
time to have his or her entire as-yet undistributed vested Account, less a
withdrawal penalty equal to ten percent (10%) of such amount (the net amount
shall be referred to as the “Withdrawal Amount”), paid to the Participant as
soon as administratively practicable following the Employer’s receipt of such
election, valued and payable in accordance with the provisions of Article 6.
No partial withdrawals of the Withdrawal Amount shall be allowed. A Participant
who is an Eligible Employee and who elects an immediate distribution under this
Section 5.3 shall not be eligible to make, or to have made on his or her
behalf, any contributions to the Plan for the twelve (12) month period
beginning on the date of receipt of the Withdrawal Amount.

 

5.4           HARDSHIP
DISTRIBUTIONS.  In the
event of financial hardship of the Participant, as hereinafter defined, the
Participant may apply to the Employer for the distribution of all or any part of
his or her as-yet undistributed vested Account. The Employer shall consider the
circumstances of each such case, and the best interests of the Participant and
his or her family, and shall have the right, in its sole discretion, if
applicable, to allow such distribution, or, if applicable, to direct a
distribution of part of the amount requested, or to refuse to allow any
distribution.  Upon a finding of
financial hardship, the Employer shall make the appropriate lump sum
distribution to the Participant from amounts held by the Employer in respect of
the Participant’s vested Account. In no event shall the aggregate amount of the
distribution exceed either the full value of the Participant’s vested Account
or the amount determined by the Employer to be necessary to alleviate the
Participant’s financial hardship (which financial hardship may be considered to
include any taxes due because of the distribution occurring because of this
Section), and which is not reasonably available from other resources of the Participant.
For purposes of this Section, the value of the Participant’s vested Account
shall be determined as of the date of the distribution.

 

“Financial hardship” means (a) a severe financial hardship to the
Participant resulting from a sudden and unexpected illness or accident of the
Participant or of a dependent (as defined in Code section 152(a)) of the
Participant, (b) loss of the Participant’s property due to casualty, or (c) other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant, each as determined to exist by
the Employer.

 

Any Participant receiving a hardship withdrawal hereunder shall have
any outstanding Compensation Deferral elections for the Plan Year of the
hardship withdrawal suspended, and he or she shall not be eligible to make any
new Compensation Deferral elections until the Plan Year following the Plan Year
in which occurs the hardship withdrawal.

 

5.5           CHANGE
IN CONTROL. 
Notwithstanding anything herein to the contrary, upon a Change in
Control of the Employer, each Participant shall become fully vested in his or
her Account, and shall be entitled to receive the entire balance of his or her
Account on the ninetieth (90th) day following the Change in Control
(or as soon as thereafter as is administratively feasible), valued and payable
in accordance with the provisions of Article 6.  Notwithstanding the preceding, the
Participant may irrevocably elect, prior to the end of such ninety (90) day
period, to waive his or

 

11

 

her right to receive such a Change in Control distribution.  If such waiver election is timely made, the
Participant shall receive his or her entire Account balance in accordance with
the other Sections of this Plan.

 

ARTICLE 6

DISTRIBUTION OF BENEFITS

 

6.1           AMOUNT.  A Participant (or his or her Beneficiary)
shall become entitled to receive, on or as soon as practicable following the
fixed date or dates selected by the Participant on his or her Participant Enrollment
and Election Form pursuant to Section 5.2 or, if no such date is
selected or if the Participant’s employment with the Employer is terminated
before the selected date(s), on or as soon as practicable following the first
day of the month following the Participant’s termination of employment with the
Employer (or earlier as provided in Sections 5.4 or 5.5), a distribution (or
commencement of distributions) in an aggregate amount equal to the Participant’s
vested Account (or applicable portion thereof). 
A Participant may alternatively elect to receive an immediate
distribution, subject to a ten percent (10%) penalty, of all of his or her
vested Account pursuant to Section 5.3. Any payment due hereunder from the
Trust which is not paid by the Trust for any reason will be paid by the
Employer from its general assets.

 

6.2           METHOD
OF PAYMENT.

 

(a)                                  Medium
of Payment.  Payments under the Plan
shall be made in cash.

 

(b)                                 Timing
and Manner of Payment.  Subject to Section 6.3,
in the case of distributions to a Participant by virtue of an entitlement
pursuant to Section 5.1 (i.e., by virtue of the Participant’s termination
of employment for any reason other than death), an aggregate amount equal to
the Participant’s vested Account as of the date of his or her termination of
employment will be paid by the Trust or the Employer, as provided by Section 6.1,
in a lump sum or in substantially equal annual installments (adjusted for
gains, losses and expenses) over a period of up-to-ten (10) years
(up-to-five (5) years if the Participant has completed at least five (5),
but less than ten (10) Years of Service), as selected by the Participant
in connection with his or her commencement of participation in the Plan (or as
changed as provided herein); provided, however, that if the Participant’s
vested Account is valued at less than twenty-five thousand dollars ($25,000) as
of the date of the Participant’s termination of employment or if the
Participant has completed less than five (5) Years of Service, the
Participant’s benefit under the Plan shall automatically be payable in the form
of a lump sum.  A Participant may change
his or her election as to the form of distribution of his or her vested Account
following termination of employment by making a new election in the form and
manner determined by the Employer, provided that any such election is made and
accepted by the Employer at least one (1) year prior to the Participant’s
termination of employment.  The election
most recently accepted by the Employer shall govern the form of distribution of
the Participant’s vested Account following the Participant’s termination of
employment. If a Participant does not make any election with respect to the
form of distribution of the Participant’s vested Account following the
Participant’s termination of employment, then such benefit shall automatically
be payable in a lump sum.

 

In the case of distributions to a Participant or his or her Beneficiary
of all or a portion of the Participant’s vested Account by virtue of an
entitlement pursuant to Section 5.2 (i.e., an elected fixed payment date
or dates),  Section 5.3 (i.e., an
immediate payment election with a ten 

 

12

 

percent (10%) penalty), Section 5.4 (i.e., a hardship withdrawal
request) or Section 5.5 (a distribution upon a Change in Control), an
aggregate amount equal to the Participant’s vested Account (or the applicable
portion thereof) valued as of the date of the applicable event, will be paid by
the Trust or the Employer, as provided in Section 6.1, in a lump sum.

 

6.3           DEATH BENEFITS.  If a Participant dies before terminating his
or her employment with the Employer and before the commencement of payments to
the Participant, the entire value of the Participant’s vested Account shall be
paid to the person or persons designated in accordance with Section 7.1 as
soon as practicable following the Participant’s death in the form of a lump
sum.

 

Upon the death of a Participant after payments hereunder have begun but
before he or she has received all payments to which he or she is entitled under
the Plan, the remaining benefit payments shall be paid to the person or persons
designated in accordance with Section 7.1 in the manner in which such
benefits were payable to the Participant.

 

ARTICLE 7

BENEFICIARIES; PARTICIPANT DATA

 

7.1           DESIGNATION
OF BENEFICIARIES.  Each
Participant from time to time may designate any person or persons (who may be
named contingently or successively) to receive such benefits as may be payable
under the Plan upon or after the Participant’s death, and such designation may
be changed from time to time by the Participant by filing a new
designation.  Each designation will
revoke all prior designations by the same Participant, shall be in the form
prescribed by the Employer, and will be effective only when filed in writing
with the Employer during the Participant’s lifetime.

 

In the absence of a valid Beneficiary designation, or if, at the time
any benefit payment is due to a Beneficiary, there is no living Beneficiary
validly named by the Participant, the Employer shall pay any such benefit
payment to the Participant’s spouse, if then living, but otherwise to the
Participant’s estate.

 

7.2           INFORMATION
TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES; INABILITY TO
LOCATE PARTICIPANTS OR BENEFICIARIES. 
Any communication, statement or notice addressed to a Participant or to
a Beneficiary at his or her last post office address as shown on the Employer’s
records, shall be binding on the Participant or Beneficiary for all purposes of
the Plan.  Neither the Trustee nor the
Employer shall be obliged to search for any Participant or Beneficiary beyond
the sending of a registered letter to such last known address.  If the Employer notifies any Participant or
Beneficiary that he or she is entitled to an amount under the Plan and the
Participant or Beneficiary fails to claim such amount or make his or her
location known to the Employer within three (3) years thereafter, then,
except as otherwise required by law, if the location of one or more of the next
of kin of the Participant is known to the Employer, the Employer may direct
distribution of such amount to any one or more or all of such next of kin, and
in such proportions as the Employer determines. 
If the location of none of the foregoing persons can be determined, the
Employer shall have the right to direct that the amount payable shall be deemed
to be a forfeiture and paid to the Employer, except that the dollar amount of
the forfeiture, unadjusted for deemed gains or losses in the interim, shall be
paid by the Employer if a claim for the benefit subsequently is made by 

 

13

 

the Participant or the Beneficiary to whom it was payable.  If a benefit payable to an unlocated
Participant or Beneficiary is subject to escheat pursuant to applicable state
law, neither the Trustee nor the Employer shall be liable to any person for any
payment made in accordance with such law.

 

ARTICLE 8

ADMINISTRATION AND RECORDKEEPING

 

8.1           ADMINISTRATIVE
AND RECORDKEEPING AUTHORITY. 
Except as otherwise specifically provided herein, the Employer shall
have the sole responsibility for and the sole control of the operation,
administration and recordkeeping of the Plan, and shall have the power and
authority to take all action and to make all decisions and interpretations
which may be necessary or appropriate in order to administer and operate the
Plan, including, without limiting the generality of the foregoing, the power,
duty and responsibility to:

 

(a)                                  Resolve
and determine all disputes or questions arising under the Plan, including the
power to determine the rights of Participants and Beneficiaries, and their
respective benefits, and to remedy any ambiguities, inconsistencies or
omissions, in the Plan.

 

(b)                                 Adopt
such rules of procedure and regulations as in its opinion may be necessary
for the proper and efficient administration of the Plan and as are consistent
with the Plan.

 

(c)                                  Implement
the Plan in accordance with its terms and the rules and regulations adopted
as above.

 

(d)                                 Make
determinations concerning the crediting and distribution of Participants’
benefits.

 

8.2           UNIFORMITY
OF DISCRETIONARY ACTS. 
Whenever in the administration or operation of the Plan discretionary
actions by the Employer are required or permitted, such action shall be
consistently and uniformly applied to all persons similarly situated, and no
such action shall be taken which shall discriminate in favor of any particular
person or group of persons.

 

8.3           LITIGATION.  In any action or judicial proceeding
affecting the Plan, it shall be necessary to join as a party only the
Employer.  Except as may be otherwise
required by law, no Participant or Beneficiary shall be entitled to any notice
or service of process, and any final judgment entered in such action shall be
binding on all persons interested in, or claiming under, the Plan.  Notwithstanding anything herein which may
suggest otherwise, a Participant or Beneficiary who consults with counsel in obtaining
advice and/or bringing proceedings in connection with his or her Plan benefits
shall be solely responsible for paying the expenses and fees of such counsel.

 

8.4           CLAIMS
PROCEDURES. This Section is
based on final regulations issued by the Department of Labor and published in
the Federal Register on November 21, 2000 and codified at 29

 

14

 

C.F.R. section 2560.503-1.  If any provision of this Section conflicts
with the requirements of those regulations, the requirements of those
regulations will prevail.

 

(a)           Initial Claim.  A Participant or Beneficiary who believes he
or she is entitled to any benefit under the Plan (a “Claimant”) may file a
claim with the Employer.  The Employer
shall review the claim itself or appoint an individual or an entity to review
the claim.

 

(i)            Determination
on Initial Claim.  The Claimant shall
be notified within ninety (90) days after the claim is filed whether the claim
is allowed or denied, unless the Claimant receives written notice from the
Employer or appointee of the Employer prior to the end of the ninety (90) day
period stating that special circumstances require an extension of the time for
decision, such extension not to extend beyond the day which is one hundred
eighty (180) days after the day the claim is filed.

 

(ii)           Manner and Content of Denial of Initial Claims.  If the Employer denies a claim, it must
provide to the Claimant, in writing or by electronic communication:

 

(1)                                  The
specific reasons for the denial;

 

(2)                                  A
reference to the Plan provision or insurance contract provision upon which the
denial is based;

 

(3)                                  A
description of any additional information or material that the Claimant must
provide in order to perfect the claim;

 

(4)                                  An explanation of why such additional material or
information is necessary;

 

(5)                                  Notice
that the Claimant has a right to request a review of the claim denial and
information on the steps to be taken if the Claimant wishes to request a review
of the claim denial; and

 

(6)                                  A
statement of the participant’s right to bring a civil action under ERISA Section 502(a) following
a denial on review of the initial denial.

 

(b)           Review Procedures.

 

(i)            Request for Review
of Denied Claim.  A request for review of a denied claim must be made in
writing to the Employer within sixty (60) days after receiving notice of
denial.  The decision upon review will be
made within sixty (60) days after the Employer’s receipt of a request for
review, unless special circumstances require an extension of time for
processing, in which case a decision will be rendered not later than one
hundred twenty (120) days after receipt of a request for review.  A notice of such an extension must be
provided to the Claimant within the initial sixty (60) day period and must
explain the special circumstances and provide an expected date of decision.

 

The reviewer shall afford the
Claimant an opportunity to review and receive, without charge, all relevant
documents, information and records and to submit issues and comments in writing
to the Employer.  The reviewer shall take
into account all comments, documents, records and other information submitted
by the Claimant relating to the claim regardless of whether the information was
submitted or considered in the initial benefit determination.

 

15

 

(ii)           Manner and Content
of Notice of Decision on Review. 
Upon completion of its review of an adverse initial claim determination,
the Employer will give the Claimant, in writing or by electronic notification,
a notice containing:

 

(1)                                  its
decision;

 

(2)                                  the
specific reasons for the decision;

 

(3)                                  the
relevant Plan provisions or insurance contract provisions on which its decision
is based;

 

(4)                                  a
statement that the Claimant is entitled to receive, upon request and without
charge, reasonable access to, and copies of, all documents, records and other
information in the Plan’s files which is relevant to the Claimant’s claim for
benefits;

 

(5)                                  a
statement describing the Claimant’s right to bring an action for judicial
review under ERISA Section 502(a); and

 

(6)                                  if
an internal rule, guideline, protocol or other similar criterion was relied
upon in making the adverse determination on review, a statement that a copy of
the rule, guideline, protocol or other similar criterion will be provided without
charge to the Claimant upon request.

 

(c)           Calculation of Time
Periods.  For purposes of the time
periods specified in this Section, the period of time during which a benefit
determination is required to be made begins at the time a claim is filed in accordance
with the Plan procedures without regard to whether all the information
necessary to make a decision accompanies the claim.  If a period of time is extended due to a
Claimant’s failure to submit all information necessary, the period for making
the determination shall be tolled from the date the notification is sent to the
Claimant until the date the Claimant responds.

 

(d)           Legal Action. 
If the Plan fails to follow the claims procedures required by this
Section, a Claimant shall be deemed to have exhausted the administrative
remedies available under the Plan and shall be entitled to pursue any available
remedy under ERISA Section 502(a) on the basis that the Plan has
failed to provide a reasonable claims procedure that would yield a decision on
the merits of the claim.  A Claimant’s
compliance with the foregoing provisions of this Section is a mandatory
prerequisite to a Claimant’s right to commence any legal action with respect to
any claims for benefits under the Plan.

 

ARTICLE 9

AMENDMENT

 

9.1           RIGHT
TO AMEND.  The
Employer, by action of the Board, shall have the right to amend the Plan at any
time and with respect to any provisions hereof, and all parties hereto or
claiming any interest hereunder shall be bound by such amendment; provided,
however, that no 

 

16

 

such amendment shall deprive any Participant or Beneficiary of a right
accrued hereunder prior to the date of the amendment.

 

9.2           AMENDMENT
TO ENSURE PROPER CHARACTERIZATION OF THE PLAN.
Notwithstanding the provisions of Section 9.1, the Plan may be amended at
any time, retroactively if required, if found necessary, in the opinion of the
Employer, in order to ensure that the Plan is characterized as a
non-tax-qualified “top hat” plan of deferred compensation maintained for a
select group of management or highly compensated employees, as described under
ERISA sections 201(2), 301(a)(3) and 401(a)(1) and to conform the
Plan to the provisions and requirements of any applicable law (including ERISA
and the Code).

 

9.3           CHANGES
IN LAW AFFECTING TAXABILITY. 
This Section shall become operative upon the enactment of any
change in applicable statutory law or the promulgation by the Internal Revenue
Service of a final regulation or other pronouncement having the force of law,
which statutory law, as changed, or final regulation or pronouncement, as
promulgated, would cause any Participant to include in his or her federal gross
income amounts accrued by the Participant under the Plan on a date (an “Early
Taxation Event”) prior to the date on which such amounts are made available to
him or her hereunder.

 

(a)                                  Affected
Right or Feature Nullified. 
Notwithstanding any other Section of this Plan to the contrary (but
subject to subsection (b), below), as of an Early Taxation Event, the
feature or features of this Plan that would cause the Early Taxation Event
shall be null and void, to the extent, and only to the extent, required to
prevent the Participant from being required to include in his or her federal
gross income amounts accrued by the Participant under the Plan prior to the
date on which such amounts are made available to him or her hereunder.  If only a portion of a Participant’s Account
is impacted by the change in the law, then only such portion shall be subject
to this Section, with the remainder of the Account not so affected being
subject to such rights and features as if the law were not changed.  If the law only impacts Participants who have
a certain status with respect to the Employer, then only such Participants
shall be subject to this Section.

 

(b)                                 Tax
Distribution.  If an Early Taxation
Event is earlier than the date on which the statute, regulation or
pronouncement giving rise to the Early Taxation Event is enacted or
promulgated, as applicable (i.e., if the change in the law is retroactive),
there shall be distributed to each Participant, as soon as practicable
following such date of enactment or promulgation, the amounts that became
taxable on the Early Taxation Event.

 

ARTICLE 10

TERMINATION

 

10.1         EMPLOYER’S
RIGHT TO TERMINATE OR SUSPEND PLAN.  The Employer reserves the right to terminate
the Plan and/or its obligation to make further credits to Plan Accounts, by
action of the Board.  The Employer also
reserves the right to suspend the operation of the Plan for a fixed or
indeterminate period of time.  However,
no such termination or suspension shall deprive any Participant or Beneficiary
of a right accrued hereunder prior to the date of the termination or
suspension.

 

17

 

10.2         AUTOMATIC
TERMINATION OF PLAN.  The Plan automatically shall terminate upon
the dissolution of the Employer, or upon its merger into or consolidation with
any other corporation or business organization if there is a failure by the
surviving corporation or business organization to adopt specifically and agree
to continue the Plan; provided, however, that no such termination shall deprive
any Participant or Beneficiary of a right accrued hereunder prior to the date
of termination.

 

10.3         SUSPENSION
OF DEFERRALS.  In the
event of a suspension of the Plan, the Employer shall continue all aspects of
the Plan, other than Compensation Deferrals and Employer Contribution Credits,
during the period of the suspension, in which event payments hereunder will
continue to be made during the period of the suspension in accordance with
Articles 5 and 6.

 

10.4         ALLOCATION
AND DISTRIBUTION.  This
Section shall become operative on a complete termination of the Plan.  The provisions of this Section also
shall become operative in the event of a partial termination of the Plan, as
determined by the Employer, but only with respect to that portion of the Plan
attributable to the Participants to whom the partial termination is
applicable.  Upon the effective date of
any such event, notwithstanding any other provisions of the Plan, no persons
who were not theretofore Participants shall be eligible to become Participants,
the value of the interest of all Participants and Beneficiaries shall be
determined and, after deduction of estimated expenses in liquidating and, if applicable,
paying Plan benefits, paid to them as soon as is practicable after such
termination.

 

10.5         SUCCESSOR
TO EMPLOYER.  Any
corporation or other business organization which is a successor to the Employer
by reason of a consolidation, merger or purchase of substantially all of the
assets of the Employer shall have the right to become a party to the Plan by
adopting the same by resolution of the entity’s board of directors or other
appropriate governing body.  If, within
ninety (90) days from the effective date of such consolidation, merger or sale
of assets, such new entity does not become a party hereto, as above provided,
the Plan automatically shall be terminated, and the provisions of the foregoing
Sections shall become operative.

 

ARTICLE 11

THE TRUST

 

11.1         ESTABLISHMENT
OF TRUST.  The Employer
may, but need not, establish the Trust with the Trustee pursuant to such terms
and conditions as are set forth in the Trust agreement to be entered into
between the Employer and the Trustee. 
The Trust is intended to be treated as a “grantor” trust under the Code
and the establishment of the Trust is not intended to cause the Participant to
realize current income on amounts contributed thereto nor to cause the Plan to
be “funded” within the meaning of ERISA, and the Trust shall be so interpreted.

 

ARTICLE 12

MISCELLANEOUS

 

12.1         LIMITATIONS
ON LIABILITY OF EMPLOYER. 
Neither the establishment of the Plan nor any modification thereof, nor
the creation of any account under the Plan, nor the payment of any benefits
under the Plan shall be construed as giving to any Participant or other person
any legal or equitable right against the Employer, or any officer or employer
thereof except 

 

18

 

as provided by law or by any Plan provision.  The Employer does not in any way guarantee
any Participant’s Account from loss or depreciation, whether caused by poor
investment performance of a deemed investment or the inability to realize upon
an investment due to an insolvency affecting an investment vehicle or any other
reason.  In no event shall the Employer,
or any successor, employee, officer, director or stockholder of the Employer,
be liable to any person on account of any claim arising by reason of the
provisions of the Plan or of any instrument or instruments implementing its
provisions, or for the failure of any Participant, Beneficiary or other person
to be entitled to any particular tax consequences with respect to the Plan, or
any credit or distribution hereunder.

 

12.2         CONSTRUCTION.  If any provision of the Plan is held to be
illegal or void, such illegality or invalidity shall not affect the remaining
provisions of the Plan, but shall be fully severable, and the Plan shall be
construed and enforced as if said illegal or invalid provision had never been
inserted herein.  For all purposes of the
Plan, where the context admits, the singular shall include the plural, and the
plural shall include the singular. 
Headings of Articles and Sections herein are inserted only for convenience
of reference and are not to be considered in the construction of the Plan.  The laws of the State of California shall
govern, control and determine all questions of law arising with respect to the
Plan and the interpretation and validity of its respective provisions, except
where those laws are preempted by the laws of the United States.  Participation under the Plan will not give
any Participant the right to be retained in the service of the Employer nor any
right or claim to any benefit under the Plan unless such right or claim has
specifically accrued hereunder.

 

The Plan is intended to be and at all times shall be interpreted and
administered so as to qualify as an unfunded deferred compensation plan, and no
provision of the Plan shall be interpreted so as to give any individual any
right in any assets of the Employer which right is greater than the rights of a
general unsecured creditor of the Employer.

 

12.3         SPENDTHRIFT
PROVISION.  No amount
payable to a Participant or a Beneficiary under the Plan will, except as
otherwise specifically provided by law, be subject in any manner to
anticipation, alienation, attachment, garnishment, sale, transfer, assignment
(either at law or in equity), levy, execution, pledge, encumbrance, charge or
any other legal or equitable process, and any attempt to do so will be void;
nor will any benefit be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of the person entitled thereto.
Further, (i) the withholding of taxes from Plan benefit payments, (ii) the
recovery under the Plan of overpayments of benefits previously made to a
Participant or Beneficiary, (iii) if applicable, the transfer of benefit
rights from the Plan to another plan, or (iv) the direct deposit of
benefit payments to an account in a banking institution (if not actually part
of an arrangement constituting an assignment or alienation) shall not be
construed as an assignment or alienation.

 

In the event that any Participant’s or Beneficiary’s benefits hereunder
are garnished or attached by order of any court, the Employer or Trustee may
bring an action or a declaratory judgment in a court of competent jurisdiction
to determine the proper recipient of the benefits to be paid under the Plan.  During the pendency of said action, any
benefits that become payable shall be held as credits to the Participant’s or
Beneficiary’s Account or, if the Employer or Trustee prefers, paid into the
court as they become payable, to be distributed by the court to the recipient
as the court deems proper at the close of said action.

 

19

 

12.4         TAX
WITHHOLDING.  The Employer
shall have the right to deduct from a Participant’s Compensation that is not
being deferred hereunder any federal, state, local or employment taxes which it
deems are required by law to be withheld with respect to any Compensation
Deferrals, vested Employer Contribution Credits or Plan distributions.  If necessary, the Employer may reduce the
Participant’s Compensation Deferrals in order to comply with this Section.

 

IN WITNESS WHEREOF,
the Employer has caused this amendment and restatement of the Plan to be
executed and its seal to be affixed hereto, effective as of the 1st day of January 2004.

 

 

	
  ATTEST/WITNESS

  	
  AVIZA TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Mary Rapp

  	
   

  	
  By:

  	
  /s/
  Patrick C. O'Connor

  	
  (SEAL)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print:

  	
  Mary
  Rapp

  	
   

  	
  Print
  Name:

  	
  Patrick
  C. O'Connor

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
  December
  4, 2004

  	
   

  	
   

  
									

 

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Exhibit 10.27    
    

 
 

NEW ATHLETICS, INC.
  2005 STOCK PLAN    
    

 
 

ARTICLE 1
  PURPOSE    
    

        1.1    General.    The purpose of the New Athletics, Inc. 2005 Stock Plan (the
"Plan") is to promote the success and enhance the value of New Athletics, Inc. (the "Company") by
linking the personal interests of the members of the Board, employees, consultants, officers, and executives of the Company and any Subsidiary, to those of Company stockholders and by providing such
individuals with an incentive for outstanding performance to generate superior returns to Company stockholders. The Plan is further intended to provide flexibility to the Company in its ability to
motivate, attract, and retain the services of members of the Board, employees, consultants, officers, and executives of the Company upon whose judgment, interest, and special effort the successful
conduct of the Company's operation is largely dependent. 

 
 

ARTICLE 2
  DEFINITIONS AND CONSTRUCTION    
    

        2.1    Definitions.    The following words and phrases shall have the following meanings: 

                (a)       "Award" means an Option, a Restricted Stock award, a Stock Appreciation Right award, a
Performance Share award, a Dividend Equivalents award, a Stock Payment award, a Restricted Stock Unit award, or a Performance-Based Award granted to a Participant pursuant to the Plan. 

                (b)       "Award Agreement" means any written agreement, contract, or other instrument or document
evidencing an Award. 

                (c)       "Board" means the Board of Directors of the Company. 

                (d)       "Cause" includes one or more of the following: (i) the commission of an act of fraud,
embezzlement or dishonesty by a Participant that has a material adverse impact on the Company or any successor or parent or Subsidiary thereof; (ii) a conviction of, or plea of "guilty" or "no
contest" to, a felony by a Participant; (iii) any unauthorized use or disclosure by a Participant of confidential information or trade secrets of the Company or any successor or parent or
Subsidiary thereof that has a material adverse impact on any such entity or (iv) any other intentional misconduct by a Participant that has a material adverse impact on the Company or any
successor or parent or Subsidiary thereof. However, if the term or concept of "Cause" has been defined in an agreement between a Participant and the Company or any successor or parent or Subsidiary
thereof, then "Cause" shall have the definition set forth in such agreement. The foregoing definition shall not in any way preclude or restrict the right of the Company or any successor or parent or
Subsidiary thereof to discharge or dismiss any Participant in the service of such entity for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of this
Plan, to constitute grounds for termination for Cause. 

                (e)       "Change of Control" means and includes each of the following: 

                        (1)       the
acquisition, directly or indirectly, by any "person" or "group" (as those terms are defined in Sections 3(a)(9), 13(d) and 14(d) of the
Exchange Act and the rules thereunder) of "beneficial ownership" (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the
election of directors ("voting securities") of the Company that 

 

represent
50% or more of the combined voting power of the Company's then outstanding voting securities, other than: 

                                (A)      an
acquisition by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained
by the Company or any person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company, or 

                                (B)      an
acquisition of voting securities by the Company or a corporation owned, directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of the stock of the Company; 

                        Notwithstanding
the foregoing, the following event shall not constitute an "acquisition" by any person or group for purposes of this subsection (e): an acquisition of the
Company's securities by the Company that causes the Company's voting securities beneficially owned by a person or group to represent 50% or more of the combined voting power of the Company's then
outstanding voting securities; provided, however, that if a person or group shall become the beneficial owner of 50% or more of the combined voting
power of the Company's then outstanding voting securities by reason of share acquisitions by the Company as described above and shall, after such share acquisitions by the Company, become the
beneficial owner of any additional voting securities of the Company, then such acquisition shall constitute a Change of Control; or 

                        (2)       during
any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new
director(s) (other than a director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in clauses (1) or (3) of this
subsection (e)) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who
either were directors at the beginning of the two year period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or 

                        (3)       the
consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more
intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company's assets or
(z) the acquisition of assets or stock of another entity, in each case other than a transaction: 

                                (A)
      which
results in the Company's voting securities outstanding immediately before the transaction continuing to represent (either by remaining
outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or
indirectly, all or substantially all of the Company's assets or otherwise succeeds to the business of the Company (the Company or such person, the "Successor
Entity")) directly or indirectly, at least a majority of the combined voting power of the Successor Entity's outstanding voting securities immediately after the transaction,
and 

                                (B)
      after
which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor
Entity; provided, however, that no person or group shall be treated for purposes of this clause (B) as beneficially owning 50% or more of
combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or 

                        (4)       the
Company's stockholders approve a liquidation or dissolution of the Company. 

                The
Committee shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change of Control of the Company has
occurred pursuant to the 

2

 

above
definition, and the date of the occurrence of such Change of Control and any incidental matters relating thereto. 

                (f)        "Code" means the Internal Revenue Code of 1986, as amended. 

                (g)       "Committee" means the committee of the Board described in Article 12. 

                (h)       "Covered Employee" means an Employee who is, or could be, a "covered employee" within the
meaning of Section 162(m) of the Code. 

                (i)        "Disability" means, for purposes of this Plan, that the Participant qualifies to receive
long-term disability payments under the Company's long-term disability insurance program, as it may be amended from time to time. 

                (j)        "Dividend Equivalents" means a right granted to a Participant pursuant to Article 8 to
receive the equivalent value (in Stock) of dividends paid on Stock. 

                (k)       "Effective Date" means the first date upon which Stock is listed (or approved for listing)
upon notice of issuance on any securities exchange or designated (or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system. 

                (l)        "Employee" means any officer or other employee (as defined in accordance with
Section 3401(c) of the Code) of the Company or any Subsidiary or Parent. 

                (m)      "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

                (n)       "Fair Market Value" shall mean, as of any date, the value of Stock determined as follows: 

                        (1)       If
the Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National
Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system for the last market trading day prior to the date of determination, as reported in The Wall Street Journal or such other source as
the Committee deems reliable; 

                        (2)       If
the Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the
mean of the closing bid and asked prices for the Stock on the date prior to the date of determination as reported in The Wall Street Journal or such
other source as the Committee deems reliable; or 

                        (3)       In
the absence of an established market for the Stock, the Fair Market Value thereof shall be determined in good faith by the Committee. 

                (o)       "Incentive Stock Option" means an Option that is intended to meet the requirements of
Section 422 of the Code or any successor provision thereto. 

                (p)       "Non-Employee Director" means a member of the Board who qualifies as a
"Non-Employee Director" as defined in Rule 16b-3(b)(3) of the Exchange Act, or any successor definition adopted by the Board. For the avoidance of doubt, this does not
include any member of the board of directors of any Parent or Subsidiary who is not also a member of the Board. 

                (q)       "Non-Qualified Stock Option" means an Option that is not intended to be an
Incentive Stock Option. 

                (r)       "Option" means a right granted to a Participant pursuant to Article 5 of the Plan to
purchase a specified number of shares of Stock at a specified price during specified time periods. An Option may be either an Incentive Stock Option or a Non-Qualified Stock Option. 

3

 

                (s)       "Parent" shall mean any corporation (other than the Company) in an unbroken chain of
corporations, ending with the Company, provided each corporation in the unbroken chain (other than the Company) owns at the time of such determination, stock possessing fifty percent (50%) or more of
the total combined voting power of all the classes of stock in one of the other corporations in such chain. 

                (t)        "Participant" means a person who, as an Employee, a member of the board of, or a consultant,
to the Company or any Subsidiary or Parent, has been granted an Award pursuant to the Plan. 

                (u)       "Performance-Based Award" means an Award granted to selected Covered Employees pursuant to
Articles 6 and 8, but which is subject to the terms and conditions set forth in Article 9. All Performance-Based Awards are intended to qualify as Qualified Performance-Based Compensation. 

                (v)       "Performance Criteria" means the criteria that the Committee selects for purposes of
establishing the Performance Goal or Performance Goals for a Participant for a Performance Period. The Performance Criteria that will be used to establish Performance Goals are limited to the
following: net earnings (either before or after interest, taxes, depreciation and amortization), net losses, sales or revenue, operating earnings, operating cash flow, return on net assets, return on
stockholders' equity, return on assets, return on capital, stockholder returns, gross or net profit margin, earnings per share, price per share of Stock, and market share, economic value added, return
on sale, productivity, expenses, margins, operating efficiency, worker satisfaction and working capital, any of which may be measured either in absolute terms or as compared to any incremental
increase or as compared to results of a peer group. The Committee shall, within the time prescribed by Section 162(m) of the Code, define in an objective fashion the manner of calculating the
Performance Criteria it selects to use for such Performance Period for such Participant. 

                (w)      "Performance Goals" means, for a Performance Period, the goals established in writing by the
Committee for the Performance Period based upon the Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in
terms of overall Company performance or the performance of a division, business unit, or an individual. The Committee, in its discretion, may, within the time prescribed by Section 162(m) of
the Code, adjust or modify the calculation of Performance Goals for such Performance Period in order to prevent the dilution or enlargement of the rights of Participants (i) in the event of, or
in anticipation of, any unusual or extraordinary corporate item, transaction, event, or development, or (ii) in recognition of, or in anticipation of, any other unusual or nonrecurring events
affecting the Company, or the financial statements of the Company, or in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business conditions. 

                (x)       "Performance Period" means the one or more periods of time, which may be of varying and
overlapping durations, as the Committee may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant's right to, and the payment
of, a Performance-Based Award. 

                (y)       "Performance Share" means a right granted to a Participant pursuant to Article 8, to
receive cash, Stock, or other Awards, the payment of which is contingent upon achieving certain performance goals established by the Committee. 

                (z)       "Plan" means this New Athletics, Inc. 2005 Stock Plan, as it may be amended from time
to time. 

                (aa)     "Qualified Performance-Based Compensation" means any compensation that is intended to
qualify as "qualified performance-based compensation" as described in Section 162(m)(4)(C) of the Code. 

4

 

                (bb)     "Restricted Stock" means Stock awarded to a Participant pursuant to Article 6 that is
subject to certain restrictions and to risk of forfeiture. 

                (cc)     "Restricted Stock Unit" means a right to receive a specified number of shares of Stock
during specified time periods pursuant to Article 8. 

                (dd)     "Stock" means the common stock of the Company and such other securities of the Company that
may be substituted for Stock pursuant to Article 11. 

                (ee)     "Stock Appreciation Right" or "SAR" means a
right granted pursuant to Article 7 to receive a payment equal to the excess of the Fair Market Value of a specified number of shares of Stock on the date the SAR is exercised over the Fair
Market Value on the date the SAR was granted as set forth in the applicable Award Agreement. 

                (ff)      "Stock Payment" means (a) a payment in the form of shares of Stock, or (b) an
option or other right to purchase shares of Stock, as part of any bonus, deferred compensation or other arrangement, made in lieu of all or any portion of the compensation, granted pursuant to
Article 8. 

                (gg)     "Subsidiary" means any corporation or other entity of which a majority of the outstanding
voting stock or voting power is beneficially owned directly or indirectly by the Company. 

 
 

ARTICLE 3
  SHARES SUBJECT TO THE PLAN    
    

        3.1    Number of Shares.    

                (a)       Subject
to Article 11, the aggregate number of shares of Stock which may be issued or transferred pursuant to Awards under the Plan
shall be one million five hundred thousand (1,500,000) shares. In addition to the foregoing, subject to Article 11, commencing on the first day of the Company's 2006 fiscal year and on the
first day of each fiscal year thereafter during the term of the Plan, the number of shares of Stock which may be issued or transferred pursuant to Awards under the Plan shall be increased by that
number of shares of Stock equal to the least of the following: (i) four percent (4%) of the total number of shares outstanding, calculated on a fully-diluted basis, on the last trading day of
the immediately preceding fiscal year, (ii) one million five hundred thousand (1,500,000) shares or (iii) a lesser amount determined by the Board. Notwithstanding anything to the
contrary herein, the maximum aggregate number of shares of Stock that may be issued or transferred pursuant to Incentive Stock Options under the Plan during the term of the Plan is fifteen million
(15,000,000), subject to Article 11. The payment of Dividend Equivalents in conjunction with any outstanding Awards shall not be counted against the shares available for issuance under the
Plan. 

                (b)       To
the extent that an Award terminates, expires, or lapses for any reason, any shares of Stock subject to the Award shall again be available
for the grant of an Award pursuant to the Plan. Additionally, any shares of Stock tendered or withheld to satisfy the grant or exercise price or tax withholding obligation pursuant to any Award shall
again be available for the grant of an Award pursuant to the Plan. To the extent permitted by applicable law or any exchange rule, shares of Stock issued in assumption of, or in substitution for, any
outstanding awards of any entity acquired in any form of combination by the Company or any Subsidiary shall not be counted against shares of Stock available for grant pursuant to this Plan. 

                (c)       Notwithstanding
the provisions of this Section 3.1 no shares of Stock may again be optioned, granted or awarded if such action would
cause an Incentive Stock Option to fail to qualify as an Incentive Stock Option under Code Section 422. 

        3.2    Stock Distributed.    Any Stock distributed pursuant to an Award may consist, in
whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open market. 

5

 

        3.3    Limitation on Number of Shares Subject to Awards.    Notwithstanding any provision
in the Plan to the contrary, and subject to Article 11, the maximum number of shares of Stock with respect to one or more Awards that may be granted to any one Participant during a calendar
year shall be five hundred thousand (500,000). 

 
 

ARTICLE 4
  ELIGIBILITY AND PARTICIPATION    
    

        4.1    Eligibility.    

                (a)       General.    Persons
eligible to participate in this Plan include Employees, and consultants the Company or any Subsidiary or Parent
and all members of the boards of directors of the Company or any Subsidiary or Parent, as determined by the Committee. 

                (b)       Foreign
Participants.    In order to assure the viability of Awards granted to Participants employed in foreign countries, the
Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom. Moreover, the Committee may approve such
supplements to, or amendments, restatements, or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in
effect for any other purpose; provided, however, that no such supplements, amendments, restatements, or alternative versions shall increase the share
limitations contained in Sections 3.1 and 3.3 of the Plan. 

        4.2    Actual Participation.    Subject to the provisions of the Plan, the Committee may,
from time to time, select from among all eligible individuals, those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual shall have any right to be
granted an Award pursuant to this Plan. 

 
 

ARTICLE 5
  STOCK OPTIONS    
    

        5.1    General.    The Committee is authorized to grant Options to Participants on the
following terms and conditions: 

                (a)       Exercise
Price.    The exercise price per share of Stock subject to an Option shall be determined by the Committee and set forth in
the Award Agreement; provided that the exercise price for any Option shall not be less than 100% of the Fair Market Value of a share of Stock on the
date of grant. 

                (b)       Time
And Conditions Of Exercise.    The Committee shall determine the time or times at which an Option may be exercised in whole or
in part, provided that the term of any Option granted under the Plan shall not exceed ten years, and provided
further, that in the case of a Non-Qualified Stock Option, such Option shall be exercisable for one year after the date of the Participant's death, provided that
this one (1) year period does not exceed the Option's ten (10) year term, as described above. The Committee shall also determine the performance or other conditions, if any, that must be
satisfied before all or part of an Option may be exercised. 

                (c)       Payment.    The
Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment,
including, without limitation, cash, promissory note bearing interest at no less than such rate as shall then preclude the imputation of interest under the Code, shares of Stock held for longer than
six months having a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof, or other property acceptable to the Committee (including
through the delivery of a notice that the Participant has placed a market sell order with a broker with respect to shares of Stock then issuable upon exercise of the 

6

 

Option,
and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price,  provided that payment of such proceeds is
then made to the Company upon settlement of such sale), and the methods by which shares of Stock shall be
delivered or deemed to be delivered to Participants. Notwithstanding any other provision of the Plan to the contrary, no Participant who is a member of the Board or an "executive officer" of the
Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to pay the exercise price of an Option in any method which would violate Section 13(k). 

                (d)       Evidence
Of Grant.    All Options shall be evidenced by a written Award Agreement between the Company and the Participant. The
Award Agreement shall include such additional provisions as may be specified by the Committee. 

        5.2    Incentive Stock Options.    Incentive Stock Options shall be granted only to
Employees who are employed by the Company or any subsidiary corporation within the meaning of Code Section 424(f) and the terms of any Incentive Stock Options granted pursuant to the Plan must
comply with the following additional provisions of this Section 5.2: 

                (a)       Exercise
Price.    The exercise price per share of Stock shall be set by the Committee,  providedthat the exercise price for any Incentive Stock Option shall not be less than 100% of the Fair
Market Value on the date of grant. 

                (b)       Expiration
Of Option.    An Incentive Stock Option may not be exercised to any extent by anyone after the first to occur of the
following events: 

                        (1)       Ten
years from the date it is granted, unless an earlier time is set in the Award Agreement. 

                        (2)       One
year after the date of the Participant's termination of employment or service on account of Disability or death, unless in the case of
death a shorter or longer period is designated in the Award Agreement. Upon the Participant's Disability or death, any Incentive Stock Options exercisable at the Participant's Disability or death may
be exercised by the Participant's legal representative or representatives, by the person or persons entitled to do so pursuant to the Participant's last will and testament, or, if the Participant
fails to make testamentary disposition of such Incentive Stock Option or dies intestate, by the person or persons entitled to receive the Incentive Stock Option pursuant to the applicable laws of
descent and distribution. 

                        (c)       Individual
Dollar Limitation.    The aggregate Fair Market Value (determined as of the time the Option is granted) of all shares
of Stock with respect to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not exceed $100,000.00 or such other limitation as imposed by
Section 422(d) of the Code, or any successor provision. To the extent that Incentive Stock Options are first exercisable by a Participant in excess of such limitation, the excess shall be
considered Non-Qualified Stock Options. 

                        (d)       Ten
Percent Owners.    An Incentive Stock Option shall be granted to any individual who, at the date of grant, owns stock
possessing more than ten percent of the total combined voting power of all classes of stock of the Company (or any parent and subsidiary corporations, within the meaning of Code Section 424(e)
and (f)) only if such Option is granted at a price that is not less than 110% of Fair Market Value on the date of grant and the Option is exercisable for no more than five years from the date of
grant. 

                        (e)       Transfer
Restriction.    The Participant shall give the Company prompt notice of any disposition of shares of Stock acquired by
exercise of an Incentive Stock Option within (1) two years from the date of grant of such Incentive Stock Option or (2) one year after the transfer of such shares of Stock to the
Participant. 

7

 

                        (f)        Expiration
Of Incentive Stock Options.    No Award of an Incentive Stock Option may be made pursuant to this Plan after the
Expiration Date (as defined in Section 13.2). 

                        (g)       Right
To Exercise.    During a Participant's lifetime, an Incentive Stock Option may be exercised only by the Participant. 

        5.3    Granting Of Options To Non-Employee Directors.    

                (a)       During
the term of the Plan, a person who first becomes a Non-Employee Director on or after the Effective Date, and was not
previously a member of the board of directors of Aviza Technology, Inc. or Trikon Technologies, Inc., automatically shall be granted an Option to purchase 25,000 shares of Stock (an
"Initial Option"). Upon the Effective Date and continuing on each of the Company's subsequent annual meetings of the stockholders, Non-Employee Directors automatically shall be granted an
Option to purchase 10,000 shares of Stock effective as of each annual meeting of the stockholders (an "Annual Option"); provided, he or she continues to
serve as member of the Board as of such date. For the avoidance of doubt, an Non-Employee Director elected for the first time to the Board at an annual meeting of stockholders shall only
receive an Initial Option in connection with such election, and shall not receive an Annual Option on the date following such meeting as well. Members of the Board who are employees of the Company who
subsequently retire from the Company and remain on the Board will not receive an Initial Option grant but to the extent they are otherwise eligible, will receive, at each annual meeting of
stockholders after his or her retirement from employment with the Company, an Annual Option grant. 

                (b)       Options
granted to Non-Employee Directors shall be Non-Qualified Stock Options.    The per Share price of
each Option granted to an Non-Employee Director shall equal 100% of the Fair Market Value of a share of Common Stock on the date the Option is granted. Initial Options shall become vested
and exercisable in three (3) equal annual installments over the three (3) year period commencing with the date of grant. Annual Options shall become vested and exercisable in four
(4) equal quarterly installments over the twelve (12) month period following their date of grant. The term of each Option granted to an Non-Employee Director shall be ten
(10) years from the date the Option is granted. Upon a Director's termination of membership on the Board for any reason, his or her Option granted under Section 5.3(a) shall remain
exercisable for twelve (12) months following his or her termination of membership on the Board (or such longer period as the Board may determine in its discretion on or after the date of grant
of such Option). Unless otherwise determined by the Board on or after the date of grant of such Option, no portion of an Option granted under Section 5.3(a) which is unexercisable at the time
of an Non-Employee Director's termination of membership on the Board shall thereafter become exercisable. 

 
 

ARTICLE 6
  RESTRICTED STOCK AWARDS    
    

        6.1    Grant of Restricted Stock.    The Committee is authorized to make Awards of
Restricted Stock to any Participant selected by the Committee in such amounts and subject to such terms and conditions as determined by the Committee, provided, however, that any Participant shall pay
a minimum of par value for each share of Restricted Stock received. All Awards of Restricted Stock shall be evidenced by a written Restricted Stock Award Agreement. 

        6.2    Issuance and Restrictions.    Restricted Stock shall be subject to such
restrictions on transferability and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive dividends
on the Restricted Stock). These restrictions may lapse separately or in combination at such times, pursuant to such circumstances, in such installments, or otherwise, as the Committee determines at
the time of the grant of the Award or thereafter. 

8

 

        6.3    Forfeiture.    Except as otherwise determined by the Committee at the time of the
grant of the Award or thereafter, upon termination of employment or service during the applicable restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited;  provided,
however, that the Committee may provide in any Restricted Stock Award Agreement that restrictions or forfeiture conditions relating to
Restricted Stock will be waived in whole or in part in the event of terminations resulting from specified causes, and the Committee may in other cases waive in whole or in part restrictions or
forfeiture conditions relating to Restricted Stock. 

        6.4    Certificates For Restricted Stock.    Restricted Stock granted pursuant to the
Plan may be evidenced in such manner as the Committee shall determine. If certificates representing shares of Restricted Stock are registered in the name of the Participant, certificates must bear an
appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, and the Company may, at its discretion, retain physical possession of the certificate until
such time as all applicable restrictions lapse. 

 
 

ARTICLE 7
  STOCK APPRECIATION RIGHTS    
    

        7.1    Grant of Stock Appreciation Rights.    A Stock Appreciation Right may be granted
to any Participant selected by the Committee. A Stock Appreciation Right may be granted (a) in connection and simultaneously with the grant of an Option, (b) with respect to a previously
granted Option, or
(c) independent of an Option. A Stock Appreciation Right shall be subject to such terms and conditions not inconsistent with the Plan as the Committee shall impose and shall be evidenced by an
Award Agreement. 

        7.2    Coupled Stock Appreciation Rights.    

                (a)       A
Coupled Stock Appreciation Right ("CSAR") shall be related to a particular Option and shall
be exercisable only when and to the extent the related Option is exercisable. 

                (b)       A
CSAR may be granted to a Participant for no more than the number of shares subject to the simultaneously or previously granted Option to
which it is coupled. 

                (c)       A
CSAR shall entitle the Participant (or other person entitled to exercise the Option pursuant to the Plan) to surrender to the Company
unexercised a portion of the Option to which the CSAR relates (to the extent then exercisable pursuant to its terms) and to receive from the Company in exchange therefor an amount determined by
multiplying the difference obtained by subtracting the Option exercise price from the Fair Market Value of a share of Stock on the date of exercise of the CSAR by the number of shares of Stock with
respect to which the CSAR shall have been exercised, subject to any limitations the Committee may impose. 

        7.3    Independent Stock Appreciation Rights.    

                (a)       An
Independent Stock Appreciation Right ("ISAR") shall be unrelated to any Option and shall
have a term set by the Committee. An ISAR shall be exercisable in such installments as the Committee may determine. An ISAR shall cover such number of shares of Stock as the Committee may determine.
The exercise price per share of Stock subject to each ISAR shall be set by the Committee at no less than 100% of Fair Market Value; provided, however,
that, the Committee in its sole and absolute discretion may provide that the ISAR may be exercised subsequent to a termination of employment or service, as applicable, or following a Change of Control
of the Company, or because of the Participant's retirement, death or disability, or otherwise. 

                (b)       An
ISAR shall entitle the Participant (or other person entitled to exercise the ISAR pursuant to the Plan) to exercise all or a specified
portion of the ISAR (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the 

9

 

difference
obtained by subtracting the exercise price per share of the ISAR from the Fair Market Value of a share of Stock on the date of exercise of the ISAR by the number of shares of Stock with
respect to which the ISAR shall have been exercised, subject to any limitations the Committee may impose. 

        7.4    Payment and Limitations on Exercise.    

                (a)       Payment
of the amounts determined under Section 7.2(c) and 7.3(b) above shall be in Stock (based on its Fair Market Value as of the
date the Stock Appreciation Right is exercised) or a combination of both, as determined by the Committee. 

                (b)       To
the extent any payment under Section 7.2(c) or 7.3(b) is effected in Stock it shall be made subject to satisfaction of all
provisions of Article 5 above pertaining to Options. 

 
 

ARTICLE 8
  OTHER TYPES OF AWARDS    
    

        8.1    Performance Share Awards.    Any Participant selected by the Committee may be
granted one or more Performance Share awards which may be denominated in a number of shares of Stock or in a dollar value of shares of Stock and which may be linked to any one or more of the
Performance Criteria or other specific performance criteria determined appropriate by the Committee, in each case on a specified date or dates or over any period or periods determined by the
Committee. In making such determinations, the Committee shall consider (among such other factors as it deems relevant in light of the specific type of award) the contributions, responsibilities and
other compensation of the particular Participant. 

        8.2    Dividend Equivalents.    

                (a)       Any
Participant selected by the Committee may be granted Dividend Equivalents based on the dividends declared on the shares of Stock that are
subject to any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires, as determined by the
Committee to the extent allowed by all applicable laws. Such Dividend Equivalents shall be converted to cash or additional shares of Stock by such formula and at such time and subject to such
limitations as may be determined by the Committee, to the extent allowed under applicable laws and in compliance with the requirements of Section 409A of the Code, or any applicable regulations
or guidance promulgated by the Secretary of the Treasury in connection therewith. 

                (b)       Dividend
Equivalents granted with respect to Options or SARs that are intended to be Qualified Performance-Based Compensation shall be
payable, with respect to pre-exercise periods, regardless of whether such Option or SAR is subsequently exercised. 

        8.3    Stock Payments.    Any Participant selected by the Committee may receive Stock
Payments in the manner determined from time to time by the Committee. The number of shares shall be determined by the Committee and may be based upon the Performance Criteria or other specific
performance criteria determined appropriate by the Committee, determined on the date such Stock Payment is made or on any date thereafter. 

        8.4    Restricted Stock Units.    Any Participant selected by the Committee may be
granted an award of Restricted Stock Units in the manner determined from time to time by the Committee in a manner consistent with all applicable laws, and in compliance with the requirements of
Section 409A of the Code, or any applicable regulations or guidance promulgated by the Secretary of the Treasury in connection therewith. The number of Restricted Stock Units shall be
determined by the Committee and may be linked to the Performance Criteria or other specific performance criteria determined to be appropriate by the Committee, in each case on a specified date or
dates or over any period or periods determined by the Committee. Stock underlying a Restricted Stock Unit award will not be issued until 

10

 

the
Restricted Stock Unit award has vested, pursuant to a vesting schedule or performance criteria set by the Committee. Unless otherwise provided by the Committee, a Participant awarded Restricted
Stock Units shall have no rights as a Company stockholder with respect to such Restricted Stock Units until such time as the Restricted Stock Units have vested and the Stock underlying the Restricted
Stock Units has been issued. 

        8.5    Term.    The term of any Award of Performance Shares, Dividend Equivalents, Stock
Payments or Restricted Stock Units shall be set by the Committee in its discretion. 

        8.6    Exercise or Purchase Price.    The Committee may establish the exercise or
purchase price of any Award of Performance Shares, Restricted Stock Units or Stock Payments; provided, however, that such price shall not be less than
restricted by all applicable state or federal laws, including Section 409A of the Code or any applicable regulations or guidance promulgated by the Secretary of the Treasury in connection
therewith. 

        8.7    Exercise Upon Termination of Employment or Service.    An Award of Performance
Shares, Dividend Equivalents, Restricted Stock Units and Stock Payments shall only be exercisable or payable while the Participant is an Employee, consultant to the Company or a member of the Board,
as applicable; provided, however, that the Committee in its sole and absolute discretion may provide that an Award of Performance Shares, Dividend
Equivalents, Stock Payments or Restricted Stock Units may be exercised or paid subsequent to a termination of employment or service, as applicable, or following a Change of Control of the Company, or
because of the Participant's retirement, death or disability, or otherwise; provided, however, that any such provision with respect to Performance
Shares shall be subject to the requirements of Section 162(m) of the Code that apply to Qualified Performance-Based Compensation; provided
further, such discretion shall only be exercisable to the extent allowed by all applicable laws. 

        8.8    Form of Payment.    Payments with respect to any Awards granted under this
Article 8 shall be made in cash, in Stock or a combination of both, as determined by the Committee. 

        8.9    Award Agreement.    All Awards under this Article 8 shall be subject to
such additional terms and conditions as determined by the Committee and shall be evidenced by a written Award Agreement. 

 
 

ARTICLE 9
  PERFORMANCE-BASED AWARDS    
    

        9.1    Purpose.    The purpose of this Article 9 is to provide the Committee the
ability to qualify Awards other than Options and SARs and that are granted pursuant to Articles 6 and 8 as Qualified Performance-Based Compensation. If the Committee, in its discretion, decides to
grant a Performance-Based Award to a Covered Employee, the provisions of this Article 9 shall control over any contrary provision contained in Articles 6 or 8; provided,
however, that the Committee may in its discretion grant Awards to Covered Employees that are based on Performance Criteria or Performance Goals but that do not satisfy the
requirements of this Article 9. 

        9.2    Applicability.    This Article 9 shall apply only to those Covered
Employees selected by the Committee to receive Performance-Based Awards. The designation of a Covered Employee as a Participant for a Performance Period shall not in any manner entitle the Participant
to receive an Award for the period. Moreover, designation of a Covered Employee as a Participant for a particular Performance Period shall not require designation of such Covered Employee as a
Participant in any subsequent Performance Period and designation of one Covered Employee as a Participant shall not require designation of any other Covered Employees as a Participant in such period
or in any other period. 

11

 

        9.3    Procedures With Respect to Performance-Based Awards.    To the extent necessary to
comply with the Qualified Performance-Based Compensation requirements of Section 162(m)(4)(C) of the Code, with respect to any Award granted under Articles 6 and 8 which may be granted to one
or more Covered Employees, no later than ninety (90) days following the commencement of any fiscal year in question or any other designated fiscal period or period of service (or such other
time as may be required or permitted by Section 162(m) of the Code), the Committee shall, in writing, (i) designate one or more Covered Employees, (ii) select the Performance
Criteria applicable to the Performance Period, (iii) establish the Performance Goals, and amounts of such Awards, as applicable, which may be earned for such Performance Period, and
(iv) specify the relationship between Performance Criteria and the Performance Goals and the amounts of such Awards, as applicable, to be earned by each Covered Employee for such Performance
Period. Following the completion of each Performance Period, the Committee shall certify in writing whether the applicable Performance Goals have been achieved for such Performance Period. In
determining the amount earned by a Covered Employee, the Committee shall have the right to reduce or eliminate (but not to increase) the amount payable at a given level of performance to take into
account additional factors that the Committee may deem relevant to the assessment of individual or corporate performance for the Performance Period. 

        9.4    Payment of Performance-Based Awards.    Unless otherwise provided in the
applicable Award Agreement, a Participant must be employed by the Company or a Subsidiary on the day a Performance-Based Award for such Performance Period is paid to the Participant. Furthermore, a
Participant shall be eligible to receive payment pursuant to a Performance-Based Award for a Performance Period only if the Performance Goals for such period are achieved. In determining the amount
earned under a Performance-Based Award, the Committee may reduce or eliminate the amount of the Performance-Based Award earned for the Performance Period, if in its sole and absolute discretion, such
reduction or elimination is appropriate. 

        9.5    Additional Limitations.    Notwithstanding any other provision of the Plan, any
Award which is granted to a Covered Employee and is intended to constitute Qualified Performance-Based Compensation shall be subject to any additional limitations set forth in Section 162(m) of
the Code (including any amendment to Section 162(m) of the Code) or any regulations or rulings issued thereunder that are requirements for qualification as qualified performance-based
compensation as described in Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the extent necessary to conform to such requirements. 

 
 

ARTICLE 10
  PROVISIONS APPLICABLE TO AWARDS    
    

        10.1    Stand-Alone and Tandem Awards.    Awards granted pursuant to the Plan may, in the
discretion of the Committee, be granted either alone, in addition to, or in tandem with, any other Award granted pursuant to the Plan. Awards granted in addition to or in tandem with other Awards may
be granted either at the same time as or at a different time from the grant of such other Awards. 

        10.2    Award Agreement.    Awards under the Plan shall be evidenced by Award Agreements
that set forth the terms, conditions and limitations for each Award which may include the term of an Award, the provisions applicable in the event the Participant's employment or service terminates,
and the Company's authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award. 

        10.3    Limits on Transfer.    No right or interest of a Participant in any Award may be
pledged, encumbered, or hypothecated to or in favor of any party other than the Company or a Subsidiary, or shall be subject to any lien, obligation, or liability of such Participant to any other
party other than the Company or a Subsidiary. Except as otherwise provided by the Committee, no Award shall be assigned, transferred, or otherwise disposed of by a Participant other than by will or
the laws of descent and 

12

 

distribution.
The Committee by express provision in the Award or an amendment thereto may permit an Award (other than an Incentive Stock Option) to be transferred to, exercised by and paid to certain
persons or entities related to the Participant, including but not limited to members of the Participant's family, charitable institutions, or trusts or other entities whose beneficiaries or beneficial
owners are members of the Participant's family and/or charitable institutions, or to such other persons or entities as may be expressly approved by the Committee, pursuant to such conditions and
procedures as the Committee may establish. Any permitted transfer may be subject to the condition that the Committee receive evidence satisfactory to it that the transfer is being made for estate
and/or tax planning purposes (or to a "blind trust" in connection with the Participant's termination of employment or service with the Company or a Subsidiary to assume a position with a governmental,
charitable, educational or similar non-profit institution) and on a basis consistent with the Company's lawful issue of securities. 

        10.4    Beneficiaries.    Notwithstanding Section 10.3, a Participant may, in the
manner determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant's death. A
beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and
conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and Award Agreement otherwise provide, and to any additional restrictions deemed necessary
or appropriate by the Committee. If the Participant is married and resides in a community property state, a designation of a person other than the Participant's spouse as his beneficiary with respect
to more than 50% of the Participant's interest in the Award shall not be effective without the prior written consent of the Participant's spouse. If no beneficiary has been designated or survives the
Participant, payment shall be made to the person entitled thereto pursuant to the Participant's will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be
changed or revoked by a Participant at any time provided the change or revocation is filed with the Committee. 

        10.5    Stock Certificates.    Notwithstanding anything herein to the contrary, the
Company shall not be required to issue or deliver any certificates evidencing shares of Stock pursuant to the exercise of any Award, unless and until the Board has determined, with advice of counsel,
that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the
shares of Stock are listed or traded. All Stock certificates delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Committee deems necessary
or advisable to comply with federal, state, or foreign jurisdiction, securities or other laws, rules and regulations and the rules of any national securities exchange or automated quotation system on
which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate to reference restrictions applicable to the Stock. In addition to the terms and conditions
provided herein, the Board may require that a Participant make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems advisable in order to comply with any
such laws, regulations, or requirements. The Committee shall have the right to require any Participant to comply with any timing or other restrictions with respect to the settlement or exercise of any
Award, including a window-period limitation, as may be imposed in the discretion of the Committee. 

 
 

ARTICLE 11
  CHANGES IN CAPITAL STRUCTURE    
    

        11.1    Adjustments.    In the event of any stock dividend, stock split, combination or
exchange of shares, merger, consolidation, spin-off, recapitalization or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other change
affecting the shares of Stock or the share price of the Stock, the Committee shall make such proportionate adjustments, if any, as the Committee in its discretion may deem appropriate to reflect such
change with respect to (i) the 

13

 

aggregate
number and type of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Sections 3.1 and 3.3); (ii) the terms and conditions of
any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); and (iii) the grant or exercise price per share for any outstanding
Awards under the Plan. Any adjustment affecting an Award intended as Qualified Performance-Based Compensation shall be made consistent with the requirements of Section 162(m) of the Code. 

        11.2    Effect of a Change of Control When Awards Are Not Assumed.    If a Change of
Control occurs and a Participant's Awards are not assumed by the surviving or successor entity or its parent or subsidiary and such successor does not substitute substantially similar awards for those
outstanding under the Plan, such Awards shall become fully exercisable and/or payable as applicable, and all forfeiture restrictions on such Awards shall lapse; further, such Awards will terminate in
full immediately prior to the consummation of such Change in Control, unless determined otherwise by the Committee. In addition, upon, or in anticipation of, a Change of Control, the Committee may
cause any and all Awards outstanding hereunder to terminate at a specific time in the future and shall give each Participant the right to exercise such Awards during a period of time as the Committee,
in its sole and absolute discretion, shall determine. The Committee shall have sole discretion to determine whether an Award has been assumed by the surviving or successor entity or its parent or
Subsidiary or whether such successor has substituted substantially similar awards for those outstanding under the Plan in connection with a Change of Control. 

        11.3    Outstanding Awards—Certain Mergers.    Subject to any required action
by the stockholders of the Company, in the event that the Company shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result of which the holders
of shares of Stock receive securities of another corporation), each Award outstanding on the date of such merger or consolidation shall pertain to and apply to the securities that a holder of the
number of shares of Stock subject to such Award would have received in such merger or consolidation. 

        11.4    Outstanding Awards—Other Changes.    In the event of any other change
in the capitalization of the Company or corporate change other than those specifically referred to in this Article 11, the Committee may, in its absolute discretion, make such adjustments in
the number and class of shares subject to Awards outstanding on the date on which such change occurs and in the per share grant or exercise price of each Award as the Committee may consider
appropriate to prevent dilution or enlargement of rights. 

        11.5    No Other Rights.    Except as expressly provided in the Plan, no Participant
shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class
or any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly provided in the Plan or pursuant to action of the Committee under the Plan, no
issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to,
the number of shares of Stock subject to an Award or the grant or exercise price of any Award. 

 
 

ARTICLE 12
  ADMINISTRATION    
    

        12.1    Committee.    Unless and until the Board delegates administration to a Committee
as set forth below, the Plan shall be administered by the Board. The Board may delegate administration of the Plan to a Committee or Committees of one or more members of the Board, and the term
"Committee" shall apply to any person or persons to whom such authority has been delegated. If administration is delegated to a Committee, the Committee shall have, in connection with the
administration of the Plan, the powers theretofore possessed by the Board, including the power to 

14

 

delegate
to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee),
subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. Notwithstanding the foregoing, however, from and after the
Effective Date, a Committee of the Board shall administer the Plan and the Committee shall consist solely of two or more members of the Board each of whom is both an "outside director," within the
meaning of Section 162(m) of the Code, and a Non-Employee Director. Within the scope of such authority, the Board or the Committee may (i) delegate to a committee of one or
more members of the Board who are not "outside directors," within the meaning of Section 162(m) of the Code the authority to grant awards under the Plan to eligible persons who are either
(1) not then "covered employees," within the meaning of Section 162(m) of the Code and are not expected to be "covered employees" at the time of recognition of income resulting from such
award or (2) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code and/or (ii) delegate to a committee of one or more members of the Board
who are not Non-Employee Directors, the authority to grant awards under the Plan to eligible persons who are not then subject to Section 16 of the Exchange Act. The Board may
abolish the Committee at any time and/or revest in the Board the administration of the Plan. Appointment of Committee members shall be effective upon acceptance of appointment. Committee members may
resign at any time by delivering written notice to the Board. Vacancies in the Committee may only be filled by the Board. 

        12.2    Action by the Committee.    A majority of the Committee shall constitute a
quorum. The acts of a majority of the members present at any meeting at which a quorum is present, and acts approved in writing by a majority of the Committee in lieu of a meeting, shall be deemed the
acts of the Committee. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the
Company or any Subsidiary, the Company's independent certified public accountants, or any executive compensation consultant or other professional retained by the Company to assist in the
administration of the Plan. 

        12.3    Authority of Committee.    Subject to any specific designation in the Plan, the
Committee has the exclusive power, authority and discretion to: 

                (a)       Designate
Participants to receive Awards; 

                (b)       Determine
the type or types of Awards to be granted to each Participant; 

                (c)       Determine
the number of Awards to be granted and the number of shares of Stock to which an Award will relate; 

                (d)       Determine
the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise price, grant price,
or purchase price, any reload provision, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and
accelerations or waivers thereof, any provisions related to non-competition and recapture of gain on an Award, based in each case on such considerations as the Committee in its sole
discretion determines; provided, however, that the Committee shall not have the authority to accelerate the vesting or waive the forfeiture of any
Performance-Based Awards; 

                (e)       Determine
whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price of an Award may be
paid in, cash, Stock, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered; 

                (f)        Prescribe
the form of each Award Agreement, which need not be identical for each Participant; 

                (g)       Decide
all other matters that must be determined in connection with an Award; 

15

 

                (h)       Establish,
adopt, or revise any rules and regulations as it may deem necessary or advisable to administer the Plan; 

                (i)        Interpret
the terms of, and any matter arising pursuant to, the Plan or any Award Agreement; and 

                (j)        Make
all other decisions and determinations that may be required pursuant to the Plan or as the Committee deems necessary or advisable to
administer the Plan. 

        12.4    Decisions Binding.    The Committee's interpretation of the Plan, any Awards
granted pursuant to the Plan, any Award Agreement and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. 

 
 

ARTICLE 13
  EFFECTIVE AND EXPIRATION DATE    
    

        13.1    Effective Date.    The Plan is effective as the Effective Date;  provided that the Plan has been approved by the
stockholders of Aviza Technology, Inc. and Trikon Technologies, Inc. prior to such date. 

        13.2    Expiration Date.    The Plan will expire on, and no Award may be granted pursuant
to the Plan after, the earliest of the tenth (10th) anniversary of (i) the date this Plan is approved by the stockholders of Aviza Technology, Inc. and Trikon
Technologies, Inc. or (ii) the date this Plan is approved by the Board (the "Expiration Date"). Any Awards that are outstanding on the
Expiration Date shall remain in force according to the terms of the Plan and the applicable Award Agreement. Each Award Agreement shall provide that it will expire on the tenth
(10th ) anniversary of the date of grant of the Award to which it relates. 

 
 

ARTICLE 14
  AMENDMENT, MODIFICATION, AND TERMINATION    
    

        14.1    Amendment, Modification, and Termination.    With the approval of the Board, at
any time and from time to time, the Committee may terminate, amend or modify the Plan; provided, however, that (i) to the extent necessary and
desirable to comply with any applicable law, regulation, or stock exchange rule, the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree as required,
and (ii) shareholder approval is required for any amendment to the Plan that (A) increases the number of shares available under the Plan (other than any adjustment as provided by
Article 11), (B) permits the Committee to grant Options with an exercise price that is below Fair Market Value on the date of grant, or (C) permits the Committee to extend the
exercise period for an Option beyond ten years from the date of grant. 

        14.2    Awards Previously Granted.    No termination, amendment, or modification of the
Plan shall adversely affect in any material way any Award previously granted pursuant to the Plan without the prior written consent of the Participant. 

 
 

ARTICLE 15
  GENERAL PROVISIONS    
    

        15.1    No Rights to Awards.    No Participant, employee, or other person shall have any
claim to be granted any Award pursuant to the Plan, and neither the Company nor the Committee is obligated to treat Participants, employees, and other persons uniformly. 

16

 

        15.2    No Stockholders Rights.    No Award gives the Participant any of the rights of a
stockholder of the Company unless and until shares of Stock are in fact issued to such person in connection with such Award. 

        15.3    Withholding.    The Company or any Subsidiary shall have the authority and the
right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including the Participant's FICA obligation)
required by law to be withheld with respect to any taxable event concerning a Participant arising as a result of this Plan. The Committee may in its discretion and in satisfaction of the foregoing
requirement allow a Participant to elect to have the Company withhold shares of Stock otherwise issuable under an Award (or allow the return of shares of Stock) having a Fair Market Value equal to the
sums required to be withheld. Notwithstanding any other provision of the Plan, the number of shares of Stock which may be withheld with respect to the issuance, vesting, exercise or payment of any
Award (or which may be repurchased from the Participant of such Award within six months after such shares of Stock were acquired by the Participant from the Company) in order to satisfy the
Participant's federal, state, local and foreign income and payroll tax liabilities with respect to the issuance, vesting, exercise or payment of the Award shall be limited to the number of shares
which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state, local and
foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income. 

        15.4    No Right to Employment or Services.    Nothing in the Plan or any Award Agreement
shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate any Participant's employment or services at any time, nor confer upon any Participant any right to
continue in the employ or service of the Company or any Subsidiary. 

        15.5    Unfunded Status of Awards.    The Plan is intended to be an "unfunded" plan for
incentive compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that
are greater than those of a general creditor of the Company or any Subsidiary. 

        15.6    Indemnification.    To the extent allowable pursuant to applicable law, each
member of the Committee or of the Board shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member
in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant
to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or proceeding against him or her,  provided he or she gives the Company an
opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend
it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company's
Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

        15.7    Relationship to Other Benefits.    No payment pursuant to the Plan shall be taken
into account in determining any benefits pursuant to any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except to the
extent otherwise expressly provided in writing in such other plan or an agreement thereunder. 

        15.8    Expenses.    The expenses of administering the Plan shall be borne by the Company
and its Subsidiaries. 

17

 

        15.9    Titles and Headings.    The titles and headings of the Sections in the Plan are
for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 

        15.10    Fractional Shares.    No fractional shares of Stock shall be issued and the
Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding up or down as appropriate. 

        15.11    Limitations Applicable to Section 16 Persons.    Notwithstanding any
other provision of the Plan, the Plan, and any Award granted or awarded to any Participant who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations
set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the
application of such exemptive rule. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such
applicable exemptive rule. 

        15.12    Government And Other Regulations.    The obligation of the Company to make
payment of awards in Stock or otherwise shall be subject to all applicable laws, rules, and regulations, and to such approvals by government agencies as may be required. The Company shall be under no
obligation to register pursuant to the Securities Act of 1933, as amended, any of the shares of Stock paid pursuant to the Plan. If the shares paid pursuant to the Plan may in certain circumstances be
exempt from registration pursuant to the Securities Act of 1933, as amended, the Company may restrict the transfer of such shares in such manner as it deems advisable to ensure the availability of any
such exemption. 

        15.13    Savings Clause.    Notwithstanding anything to the contrary in the Plan or any
Award, if and to the extent the Committee shall determine that the terms of any Award may result in the failure of the such Award to comply with the requirements of Section 409A of the Code, or
any applicable regulations or guidance promulgated by the Secretary of the Treasury in connection therewith, the Committee shall have authority to take such action to amend, modify, cancel or
terminate the Plan or any grant of any Award as it deems necessary or advisable irrespective of the adverse affect of such action on and, notwithstanding Section 14.2, without the consent of
any Participant. 

        15.14    Governing Law.    The Plan and all Award Agreements shall be construed in
accordance with and governed by the laws of the State of Delaware. 

18

QuickLinks

Exhibit 10.27

NEW ATHLETICS, INC. 2005 STOCK PLAN

ARTICLE 1 PURPOSE

ARTICLE 2 DEFINITIONS AND CONSTRUCTION

ARTICLE 3 SHARES SUBJECT TO THE PLAN

ARTICLE 4 ELIGIBILITY AND PARTICIPATION

ARTICLE 5 STOCK OPTIONS

ARTICLE 6 RESTRICTED STOCK AWARDS

ARTICLE 7 STOCK APPRECIATION RIGHTS

ARTICLE 8 OTHER TYPES OF AWARDS

ARTICLE 9 PERFORMANCE-BASED AWARDS

ARTICLE 10 PROVISIONS APPLICABLE TO AWARDS

ARTICLE 11 CHANGES IN CAPITAL STRUCTURE

ARTICLE 12 ADMINISTRATION

ARTICLE 13 EFFECTIVE AND EXPIRATION DATE

ARTICLE 14 AMENDMENT, MODIFICATION, AND TERMINATION

ARTICLE 15 GENERAL PROVISIONS

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