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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001206774-10-000619.txt : 20100317
<SEC-HEADER>0001206774-10-000619.hdr.sgml : 20100317
<ACCEPTANCE-DATETIME>20100317172800
ACCESSION NUMBER:		0001206774-10-000619
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20100311
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Submission of Matters to a Vote of Security Holders
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100317
DATE AS OF CHANGE:		20100317

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMTECH SYSTEMS INC
		CENTRAL INDEX KEY:			0000720500
		STANDARD INDUSTRIAL CLASSIFICATION:	SPECIAL INDUSTRY MACHINERY, NEC [3559]
		IRS NUMBER:				860411215
		STATE OF INCORPORATION:			AZ
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11412
		FILM NUMBER:		10689624

	BUSINESS ADDRESS:	
		STREET 1:		131 S CLARK DR
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281
		BUSINESS PHONE:		6029675146

	MAIL ADDRESS:	
		STREET 1:		131 SOUTH CLARK DRIVE
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	QUARTZ ENGINEERING & MATERIALS INC
		DATE OF NAME CHANGE:	19870715
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>amtech_8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
<html>
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    <title>amtech_8k.htm</title>
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    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">UNITED STATES<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">SECURITIES AND EXCHANGE COMMISSION<br>WASHINGTON,
D.C. 20549</font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="4" style="FONT-FAMILY: serif">FORM 8-K</font></font></div>
    <div>&#160;</div>
    <div align="center">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">CURRENT REPORT<br>Pursuant to Section 13 or 15(d) of
the<br>Securities Exchange Act of 1934</font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline"><font style="FONT-FAMILY: serif">March 11, 2010<br></font></font><font style="DISPLAY: inline"><font style="FONT-FAMILY: serif">Date of Report (Date of
earliest event reported)</font></font></div>
    <div>&#160;</div>
    <div align="center"><font size="4" style="FONT-FAMILY: serif">Amtech Systems,
Inc.<br></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">(Exact name of registrant as specified in its
charter)</font></font></div>
    <div>&#160;</div>
    <div align="left">
    </div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="">
<tr valign="bottom">
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="FONT-FAMILY: serif">Arizona</font></td>
            <td nowrap width="89%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="FONT-FAMILY: serif">000-11412</font></td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="FONT-FAMILY: serif">86-0411215</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">(State or other jurisdiction</font></font></td>
            <td nowrap width="89%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">(Commission</font></font></td>
            <td align="left" nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">(IRS Employer</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">of incorporation)</font></font></td>
            <td nowrap width="89%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">File Number)</font></font></td>
            <td nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">Identification No.)</font></font></td>
          </tr><tr>
            <td nowrap width="5%">&#160;</td>
            <td nowrap width="89%">&#160;</td>
            <td nowrap width="5%">&#160;</td>
          </tr><tr>
            <td align="left" colspan="2" nowrap width="94%" style="BORDER-BOTTOM: #000000 1pt solid">131 South Clark Drive, Tempe, Arizona&#160;</td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">85281</td>
          </tr><tr>
            <td align="left" colspan="2" nowrap width="94%"><font style="DISPLAY: inline; FONT-WEIGHT: bold">(Address of principal executive
      offices)</font></td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">(Zip
Code)</font></td>
          </tr></table>
    </div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="">
<tr>
            <td nowrap width="20%"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Registrant&#8217;s telephone number,
      including area code</font></td>
            <td width="80%" style="BORDER-BOTTOM: #000000 1pt solid">
              <div align="center">(480) 967-5146</div>
            </td>
          </tr></table>
    </div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="">
<tr>
            <td colspan="3" width="100%" style="BORDER-BOTTOM: #000000 1pt solid">
              <div align="center">Not applicable.</div>
            </td>
          </tr><tr>
            <td colspan="3" width="100%">
              <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">(Former
      name or former address, if changed since last report.)</font></div>
            </td>
          </tr><tr style="LINE-HEIGHT: 8pt;">
            <td width="40%">&#160;</td>
            <td width="20%" style="BORDER-BOTTOM: #000000 2pt solid">&#160; </td>
            <td width="40%">&#160;</td>
          </tr><tr style="LINE-HEIGHT: 8pt;">
            <td width="40%">&#160;</td>
            <td width="20%">&#160;</td>
            <td width="40%">&#160;</td>
          </tr></table>
    </div>
    <div align="left"><font style="FONT-FAMILY: serif">Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (<font style="DISPLAY: inline; FONT-STYLE: italic"><font style="FONT-FAMILY: serif">see
</font></font><font style="FONT-FAMILY: serif">General Instruction A.2.
below):</font></font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: sans-serif"><font face="Wingdings">o</font></font><font size="2" style="FONT-FAMILY: sans-serif">&#160; </font><font size="2" style="FONT-FAMILY: serif">Written communications pursuant to Rule 425
under Securities Act (17 CFR 230.425)</font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: sans-serif"><font face="Wingdings">o</font><font size="2" style="FONT-FAMILY: sans-serif">&#160; </font></font><font size="2" style="FONT-FAMILY: serif">Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font> </div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: sans-serif"><font face="Wingdings">o</font><font size="2" style="FONT-FAMILY: sans-serif">&#160; </font></font><font size="2" style="FONT-FAMILY: serif">Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))</font></div>
    <div>&#160;</div>
    <div align="left"><font size="2" style="FONT-FAMILY: sans-serif"><font face="Wingdings">o</font><font size="2" style="FONT-FAMILY: sans-serif">&#160; </font></font><font size="2" style="FONT-FAMILY: serif">Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="">
<tr>
            <td nowrap valign="top" width="1%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">Item 5.02&#160;
      </font></font></td>
            <td valign="top" width="98%"><font size="2"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">Departure of Directors or Certain Officers;
      Election of Directors; Appointment of Certain Officers; Compensatory
      Arrangements of Certain Officers.
</font></font></font></td>
          </tr></table>
    </div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">(c) Appointment of
Certain Officers.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Appointment of Fokko Pentinga as President of
the Company</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">On March 11, 2010,
the Board of Directors (the &#8220;Board&#8221;) of Amtech Systems, Inc. (the &#8220;Company&#8221;)
promoted Fokko Pentinga, age 55, appointing him as President of the Company.
Since December of 2008, Mr. Pentinga has served as Managing Director of Amtech
Europe, which is comprised of the Company&#8217;s two European subsidiaries, Tempress
Systems (&#8220;Tempress&#8221;) in Vaassen, the Netherlands, and R2D Automation (&#8220;R2D&#8221;)
near Montpellier, France. During that time Mr. Pentinga also served as General
Manager of Tempress (a position he has held for the past 15 years) and President
of R2D (a position he has held for the past 2 years). Mr. Pentinga has over 30
years of experience in the semiconductor and solar industries.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company&#8217;s press
release regarding the promotion of Mr. Pentinga is attached as Exhibit 99.1.
</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">(e) Compensatory
Arrangements of Certain Officers.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Non-Employee Directors Stock Option Plan
Amendments</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Board previously
approved, subject to shareholder approval, amendments to the Company&#8217;s
Non-Employee Directors Stock Option Plan (the &#8220;Director Plan&#8221;) that would (1)
authorize an additional 150,000 shares of Common Stock for issuance under the
plan, increasing the authorized number of shares from 200,000 to 350,000, (2)
extend the plan termination date from July 8, 2015 to the date that is 10 years
after the effective date of the amendment to the Director Plan, and (3) make
certain other amendments, including amendments to the definition of &#8220;Fair Market
Value&#8221; and certain other changes in order to ensure the Director Plan complies
with Section 409A of the Internal Revenue Code and other applicable laws and
regulations. According to the results from the Company&#8217;s Annual Meeting of
Shareholders held on March 11, 2010 (the &#8220;Annual Meeting&#8221;), the Company&#8217;s
shareholders approved these amendments to the Director Plan. The foregoing
description of the amendments is qualified in its entirety by the text of the
amended version of the Director Plan, which is filed as Exhibit 10.1 hereto and
incorporated herein by reference.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">2007 Employee Stock Incentive Plan
Amendments</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Board previously
approved, subject to shareholder approval, amendments to the Company&#8217;s 2007
Employee Stock Incentive Plan (the &#8220;Employee Plan&#8221;), that would (1) authorize an
additional 900,000 shares of Common Stock for issuance under the plan,
increasing the authorized number of shares from 500,000 to 1,400,000; (2) extend
the plan termination date from July 8, 2015 to the date that is ten years after
the effective date of the amendment to the Employee Plan, and (3) make certain
other amendments in order to ensure the plan complies with Section 409A of the
Internal Revenue Code and other applicable laws and regulations. <font size="2" style="FONT-FAMILY: serif">According to the results from the Annual
Meeting, the Company&#8217;s shareholders approved these amendments to the Employee
Plan. The foregoing description of the amendments is qualified in its entirety
by the text of the amended version of the Employee Plan, which is filed as
Exhibit 10.2 hereto and incorporated herein by reference. </font></font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Employment Agreement with the Company&#8217;s Chief
Executive Officer, Jong S. Whang</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">On March 11, 2010,
the Board approved an Amended and Restated Employment Agreement (the &#8220;Employment
Agreement&#8221;)&#160;between the Company and Jong S. Whang, the Company&#8217;s Chief
Executive Officer.&#160;The term of the Employment Agreement is three (3) years,
which may be extended by the parties. Mr. Whang&#8217;s base salary shall be $350,000
(as determined by the Board and reported in December 2009), which shall be
reviewed and may be increased by the Compensation Committee (the &#8220;Compensation
Committee&#8221;) of the Board on an annual basis. Mr. Whang shall be eligible for
annual cash bonuses in accordance with the annual bonus plan adopted by the
Compensation Committee,&#160;restricted stock and&#160;stock option grants as
determined by the Compensation Committee. Additionally, Mr. Whang will be
provided a car allowance and life insurance.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font size="2">In the event of termination of the Employment
Agreement for other than cause, Mr. Whang<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8217;</font>s restricted stock
and stock options would vest. He would also receive payment of his salary, his
cash bonus and his accrued vacation through the date of such termination and a
lump sum severance payment consisting of: (a) his base salary for the greater of
2 years or the remainder of the initial 3 year term and (b) his maximum cash
bonus under the annual bonus plan. Mr. Whang would also earn 40% of his salary
in exchange for making himself available to serve on the board and to consult
with the Company.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font size="2">The foregoing description is qualified in its
entirety by the text of the Employment Agreement, which is filed as Exhibit 10.3
hereto and incorporated herein by reference.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Amendment to the Change of Control Agreement
with the Company&#8217;s Chief Accounting Officer, </font></font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Robert T. Hass</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">On March 11, 2010,
the Board approved an Amended and Restated Change of Control and Severance
Agreement (the &#8220;Change of Control Agreement&#8221;) between the Company and Robert T.
Hass, the Company&#8217;s Chief Accounting Officer. The amendment was made to conform
the terms of the Change of Control Agreement to the change of control provisions
contained in the employment agreements of the Company&#8217;s other executive
officers. In particular, the amendment provides for the vesting of Mr. Hass&#8217;s
restricted stock upon the occurrence of certain events. The foregoing
description is qualified in its entirety by the text of the&#160;Change of
Control Agreement, which is filed as Exhibit 10.4 hereto and incorporated herein
by reference.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Item 5.07</font></font><font size="2" style="FONT-FAMILY: serif"> </font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Submission of Matters to a Vote of Security Holders </font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">At the Annual
Meeting, management Proposals 1, 2, 3 and 4 were approved. The Proposals below
are described in detail in the Company&#8217;s definitive proxy statement dated
January 29, 2010 for the Annual Meeting. For Proposal 1, only &#8220;FOR&#8221; votes were
counted for purposes of determining the six nominees who received a plurality of
the votes cast at the Annual Meeting. For Proposals 2, 3 and 4, only &#8220;FOR&#8221; and
&#8220;AGAINST&#8221; votes were counted for purposes of determining the votes received in
connection with each proposal. Therefore, broker non-votes and abstentions had
no effect on any of the Proposals. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The results are as
follows:</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Proposal 1</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The individuals
listed below received the highest number of affirmative votes of the outstanding
shares of the Company&#8217;s common stock present or represented by proxy and voting
at the Annual Meeting and were elected at the Annual Meeting to serve a one-year
term on the Board.</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" width="60%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="83%">
            </td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">For</font></font></td>
            <td align="right" nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="10%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Authority Withheld</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Jong S. Whang</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">4,564,887</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="10%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">139,445</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%"><font size="2" style="FONT-FAMILY: serif">Michael Garnreiter</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">4,204,799</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="10%"><font size="2" style="FONT-FAMILY: serif">499,533</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Alfred W. Giese</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">4,522,177</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="10%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">182,155</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%"><font size="2" style="FONT-FAMILY: serif">Egbert Jan Geert Goudena</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">4,599,962</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="10%"><font size="2" style="FONT-FAMILY: serif">104,370</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Jeong Mo Hwang</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">4,522,274</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="10%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">182,058</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="83%"><font size="2" style="FONT-FAMILY: serif">Robert F. King</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">4,521,739</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="10%"><font size="2" style="FONT-FAMILY: serif">182,593</font></td>
          </tr></table>
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Proposal 2</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The management
proposal to ratify the appointment of Mayer Hoffman McCann P.C. as the Company&#8217;s
independent registered public accounting firm for fiscal year 2010, as described
in the proxy materials. This Proposal was approved with approximately 99.89% of
the shares present or represented and voting at the Annual Meeting voting for
the Proposal and approximately 0.11% of the shares voting against the
Proposal.</font></div>
    <div>&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" width="50%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="32%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">For</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="33%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Against</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="33%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Abstained</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="32%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">6,852,857</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="33%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">8,020</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="33%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">19,950</font></td>
          </tr></table>
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Proposal 3</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The management
proposal to amend the Director Plan, as described in the proxy materials. This
Proposal was approved with approximately 87.56% of the shares present or
represented and voting at the Annual Meeting voting for the Proposal and
approximately 12.44% of the shares voting against the Proposal.</font></div>
    <div>&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" width="50%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="32%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">For</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td>
            <td nowrap width="33%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Against</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="33%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Abstained</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="32%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">4,066,844</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="33%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">577,808</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="33%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">59,680</font></td>
          </tr></table>
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Proposal 4</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The management
proposal to amend the Employee Plan, as described in the proxy materials. This
Proposal was approved with approximately 75.77% of the shares present or
represented and voting at the Annual Meeting voting for the Proposal and
approximately 24.23% of the shares voting against the Proposal.</font></div>
    <div>&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" width="50%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="32%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">For</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="33%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Against</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="33%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Abstained</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="32%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">3,545,339</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td nowrap width="33%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">1,133,957</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="33%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">25,036</font></td>
          </tr></table>
    </div><br>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Item 9.01 Financial Statements and Exhibits
</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">(d)
Exhibits.<br></font><font size="2" style="FONT-FAMILY: serif">The following
exhibits are furnished herewith:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="3%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Exhibit</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="95%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Number</font></font></td>
            <td align="left" nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="95%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Description</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">10.1</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" valign="top" width="95%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Amtech Systems, Inc. Non-Employee
      Directors Stock Option Plan, as amended through March 11, 2010<font size="2">.</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%">&#160;</td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="95%"><font size="2">&#160;</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">10.2</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" valign="top" width="95%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Amtech Systems, Inc. 2007 Employee Stock
      Incentive Plan, as amended through March 11, 2010.</font></td>
          </tr><tr>
            <td align="left" nowrap valign="top" width="3%">
            </td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="95%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="#cceeff"><font size="2">10.3</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" valign="top" width="95%" bgcolor="#cceeff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman, serif">Amended
      and Restated Employment Agreement between the Company and&#160;Jong S.
      Whang.</font></div>
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="white"><font size="2" style="FONT-FAMILY: serif">&#160;</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="white">&#160;</td>
            <td align="left" valign="top" width="95%" bgcolor="white"><font size="2" style="FONT-FAMILY: serif">&#160;</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">10.4</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" valign="top" width="95%" bgcolor="#cceeff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman, serif">Amended
      and Restated Change of Control and Severance Agreement betweent the
      Company and Robert T. Hass.</font></div>
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="white"><font size="2" style="FONT-FAMILY: serif">&#160;</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="white">&#160;</td>
            <td align="left" valign="top" width="95%" bgcolor="white"><font size="2" style="FONT-FAMILY: serif">&#160;</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">99.1</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" valign="top" width="95%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Press Release regarding the Appointment
      of Fokko Pentinga as President of Amtech Systems,
Inc.</font></td>
          </tr></table>
    </div><br>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">SIGNATURES</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized. </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="48%">
            </td>
            <td align="left" nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td align="left" colspan="3" nowrap width="50%"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC.</font></td>
          </tr><tr>
            <td align="left" nowrap width="48%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="3" nowrap width="50%">&#160;</td>
          </tr><tr>
            <td align="left" nowrap width="48%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="3" nowrap width="50%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="48%"><font size="2" style="FONT-FAMILY: serif">Date: March 1<font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">7</font></font><font size="2" style="FONT-FAMILY: serif">, 2010</font></font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">By:&#160; </font></td>
            <td align="left" colspan="2" nowrap width="49%"><font size="2" style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: serif">&#160;
      /s/ Bradley C. Anderson</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="48%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">Name:&#160;&#160; </font></td>
            <td align="left" nowrap width="46%"><font size="2" style="FONT-FAMILY: serif">Bradley C. Anderson</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="48%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">Title:</font></td>
            <td align="left" nowrap width="46%"><font size="2" style="FONT-FAMILY: serif">Vice President and Chief</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="48%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">&#160;</td>
            <td align="left" nowrap width="46%"><font size="2" style="FONT-FAMILY: serif">Financial Officer</font></td>
          </tr></table>
    </div><br>
    <hr align="center" noshade size="2" width="100%">
  </body>
</html>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit10-1.htm
<DESCRIPTION>AMTECH SYSTEMS, INC. NON-EMPLOYEE DIRECTORS STOCK OPTION PLAN
<TEXT>
<html>
<head>
    <title>exhibit10-1.htm</title>
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    <div align="center"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">NON-EMPLOYEE DIRECTORS
STOCK OPTION PLAN<br>AS AMENDED EFFECTIVE JULY 8, 2005 AND<br>AS FURTHER AMENDED
EFFECTIVE MARCH 11, 2010 </font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Purposes of the Plan</font></font></div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The purposes of this
Plan are to attract and retain the best available individuals to serve as
non-employee members of the Board of Directors of Amtech Systems, Inc. (the
"Company"), to reward such directors for their contributions to the profitable
growth of the Company, and to maximize the identity of interest between such
directors and stockholders generally. The Plan is intended to fall within an
exception to coverage under Section 409A of the Internal Revenue
Code.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>1. Definitions. As used herein, the
following definitions shall apply:</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>a. "Board" shall mean
the Board of Directors of the Company.</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>b. "Company" shall mean
Amtech Systems, Inc., an Arizona corporation. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">c. "Effective Date" shall be the date that the Board of Directors of the
Company adopts this Plan. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">d. "Eligible Director" shall mean (i) those individuals who are serving
as non-employee members of the Board on the Effective Date, or (ii) those
individuals who are elected or appointed as non-employee members of the Board
after the Effective Date, whether through appointment by the Board or election
of the Company's stockholders. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">e. "Exercise Price" shall mean, with respect to Shares of Optioned Stock,
the Fair Market Value of such Shares on the date of grant of the Option.
</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">f. "Fair Market Value" shall mean, with respect to the date a given
Option is granted or exercised, the value of the Common Stock determined by the
Board in such manner as it may deem equitable for Plan purposes in accordance
with applicable law, including Section 409A of the Internal Revenue Code;
provided, however, that where there is a public market for the Common Stock, the
Fair Market Value per Share shall be the closing price for a Share reported for
the last trading day prior to such date by the NASDAQ Stock Market (or such
other stock exchange or quotation system on which Shares are then listed or
quoted) or, if no Shares are traded on the NASDAQ Stock Market (or such other
stock exchange or quotation system) on the date in question, then for the next
preceding date for which Shares traded on the NASDAQ Stock Market (or such other
stock exchange or quotation system). </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>g. "Option" shall mean
a right to purchase Stock, granted pursuant to the Plan. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>h. "Optioned Stock"
shall mean the Stock subject to an Option. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">i. "Optionee" shall mean a non-employee director of the Company who has
been granted an Option. </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: SERIF"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>j. "Plan" shall mean
this Non-Employee Directors Stock Option Plan. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: SERIF"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>k. "Share" shall mean a
share of the Stock. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: SERIF">l. "Stock" shall mean the Common Stock of the Company described in the
Certificate of Incorporation of the Company. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: SERIF">m. "Stock Option Agreement" shall mean the written agreement evidencing
the grant of an Option. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: SERIF">n. "Trading Day" shall mean a day on which the Fair Market Value of the
Stock can be determined. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: SERIF"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>2. Common Stock Subject to the Plan.
Subject to increases and adjustments pursuant to </font><font size="2" style="FONT-FAMILY: SERIF">Section 9 of the Plan, the number of Shares
reserved and available for distribution under the Plan shall be Three Hundred
Fifty Thousand (350,000). If an Option shall expire or become unexercisable for
any reason without having been exercised in full, the unauthorized Shares
covered by the Option shall, unless the Plan shall have terminated, be available
for future grants of Options. The Company shall use its best efforts to provide
that any Stock subject to the Option constitutes, or is equivalent to, &#8220;service
recipient stock&#8221; within the meaning of Internal Revenue Code Section 409A.
</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: SERIF"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>3. Option Grants. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: SERIF">a. Each individual who first becomes an Eligible Director after the
Effective Date, whether through election by the stockholders or appointment of
the Board, shall be granted at the time of such initial election or appointment,
or on such other date as may be determined by the Board, an Option to purchase
6,000 shares of Stock, or such other number of shares of Stock as may be
determined by the Board. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: SERIF">b. On the first business day following the Company&#8217;s Annual Meeting of
Shareholders each year (the &#8220;Annual Grant Date&#8221;), beginning with the first
business day following the 2005 Annual Meeting of Shareholders, or at such other
date as may be determined by the Board, each individual who is at that time an
Eligible Director shall be granted an Option under the Plan to purchase an
additional 5,000 shares of Stock, or such other number of shares of Stock may be
determined by the Board; provided such individual (i) has attended 75% of the
meetings of the Board held during the 12-month period immediately preceding the
Annual Grant Date, or (ii) if such individual was appointed or elected as a
director during such 12-month period, he or she has attended 75% of the meetings
of the Board held during his of her term as a director, and (iii) has attended
75% of the meetings of any Committee of the Board to which such individual has
been appointed as a member during such 12-month period. </font></div>
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    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: SERIF">c. The purchase price of Shares subject to an Option shall be the Fair
Market Value on the date of grant. Subject to Section 8, the Board shall not
permit the repricing of any Option by any method, including by cancellation and
reissuance. </font></div>
    <div>&#160;</div>
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    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">d. Each Option granted pursuant to this Plan shall vest and become
exercisable according to the following schedule, provided that the Optionee
remains an Eligible Director at such vesting date: </font></div>
    <div>&#160;</div>
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<tr valign="bottom">
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the event of a departure of a director, due to resignation or otherwise, the
Board shall have discretion to grant to such departing director an Option or
Options to purchase such number of shares of Stock as the Board may determine
and to fix the vesting and exercisability dates with respect thereto in
recognition of such departing director&#8217;s service on the Board or any Committee
thereof. </font></div>
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    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(f) No Deferral Feature. No Option shall have any feature that would
allow for the deferral of compensation (within the meaning of Internal Revenue
Code Section 409A) other than the deferral of recognition of income until the
later of the exercise or disposition of the Option or the time the shares of
Stock acquired subject to the exercise of the Option first become substantially
vested (as defined in Treasury Regulation section 1.83-3(b)).</font></div>
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    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">4. Stockholder Approval. This Plan was adopted
by the Board of Directors of the Company on December 21, 1995 (the &#8220;Effective
Date&#8221;) and approved by the shareholders on February 29, 1996. The Board approved
certain amendments to the Plan on March 15, 2001 and April 21, 2005. The
shareholders approved certain amendments to the Plan on July 8, 2005. Options
may be granted under the Plan on and after the Effective Date. No Option may be
granted after March 11, 2020; provided, however, that the Plan and all
outstanding Options shall remain in effect until such Options shall have been
exercised, shall have expired or shall otherwise be terminated. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>5. Term; Exercise; Rights as a
Stockholder. </font></div>
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    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">a. The term of each Option shall be ten (10) years from the date of grant
thereof. To the extent vested the Option may be exercised in whole or in part at
any time and during the term of the Option. No fractional Shares will be issued
upon exercise of the Option and, if the exercise results in a fractional
interest, an amount will be paid in cash equal to the value of such fractional
interest based on the Fair Market Value of the Shares on the date of exercise.
</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">b. An Option shall be deemed to be exercised upon receipt by the Company
from the Optionee of written notice of such exercise. Such notice shall be
accompanied by full payment for the Shares subject to such exercise.
</font></div>
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    <div>
      <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>6. Payment. The Exercise Price shall
be paid:</font></div>
    </div>
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    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">a. In United States dollars in cash or by check payable to the order of
the Company; or</font></div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2">&#160;</font></div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">b. Subject to the approval of the Board, by delivery of Shares with an
aggregate Fair Market Value equal to the Exercise Price; or </font></div>
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    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>c. By any combination
of (a) and (b) above. </font></div>
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    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The Board shall determine acceptable methods for tendering Stock as
payment upon exercise of an Option and may impose such limitations and
prohibitions on the use of Stock to exercise an Option as it deems appropriate.
</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">7. Transferability of Options. The Option may
not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent and distribution to the
limited extent provided herein or pursuant to a "qualified domestic relations
order" as defined by the Internal Revenue Code or the Employee Retirement Income
Security Act or the rules thereunder. Except as permitted herein, an Option may
be exercised, during the lifetime of the Optionee, only by the Optionee or by
his guardian or legal representative. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In the event of the Optionee's death, his or
her Option shall be exercisable, prior to the expiration of the Option, by the
person or persons to whom his or her accrued and vested rights pass by will or
by the laws of descent and distribution. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">8. Adjustments Upon Changes in Capitalization
or Merger. Subject to any required action by the stockholders of the Company,
the number of Shares covered by each outstanding Option, and the number of
Shares which have been authorized for issuance under the Plan but as to which no
Options have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Option, as well as the price per Share covered
by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued Shares resulting from a stock
split, reverse stock split, consolidation, subdivision, stock dividend,
combination or reclassification of the Shares, or any other increase or decrease
in the number of issued Shares effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of the
Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, 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 or price
of Shares subject to an Option. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In the event of the proposed dissolution or
liquidation of the Company, all Options will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the Board.
The Board may, in the exercise of its sole discretion in such instances, declare
that any Option shall terminate as of a date fixed by the Board and give each
holder the right to exercise the Option as to all or any part thereof, including
Shares as to which the Option would not otherwise be exercisable. In the event
of a proposed sale of all or substantially all of the assets of the Company, or
the merger of the Company with or into another corporation, the Option shall be
assumed or an equivalent Option shall be substituted by such successor
corporation or a parent or subsidiary of such successor corporation, unless the
Board determines, in the exercise of its sole discretion and in lieu of such
assumption or substitution, that the holder shall have the right to exercise the
Option as to all of the Shares, including Shares as to which the Option would
not otherwise be exercisable. If the Board makes an Option exercisable in lieu
of assumption or substitution in the event of a merger or sale of assets, the
Board shall notify the holder that the Option shall be fully exercisable for a
period of 30 days from the date of such notice (but not later than the
expiration of the term of the Option), and the Option will terminate upon the
expiration of such period.</font></div>
    <div>&#160;</div>
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    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">9. Amendment and Termination of the Plan. The
Board may amend the Plan from time to time in such respects as the Board may
deem advisable or terminate the Plan; provided, however, that amendments to the
Plan relating to the amount, price or timing of Option grants shall not be made
more than once in any six month period, other than amendments necessary to
comply with changes in the Internal Revenue Code of 1986, as amended, the
Employee Retirement Income Security Act, as amended, or the rules thereunder.
Any amendment or termination of the Plan shall not affect Options already
granted and such Options shall remain in full force and effect as if this Plan
had not been amended or terminated. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Notwithstanding the foregoing, revisions or
amendments that accomplish any of the following shall require approval of the
stockholders of the Company, to the extent required by law, rule or regulation:
</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>a. Materially increase
the benefits accruing to participants under the Plan;</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>b. Materially increase
the number of Shares which may be issued under the Plan;</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>c. Materially modify
the Plan as to eligibility for participation in the Plan; or </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">d. Otherwise cause the Plan to lose its exemption under Section 16(b) of
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">10. Conditions Upon Issuance of Shares. Shares
shall not be issued pursuant to the exercise of an Option unless the exercise of
such Option and the issuance and delivery of such Shares pursuant thereto shall
comply with all relevant provisions of law, including, without limitation the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange or market system upon which the Shares may be listed, and
shall be further subject to the approval of counsel for the Company with respect
to such compliance. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">As a condition to the exercise of an Option,
the Company may require the Optionee to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required or
advisable. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Inability of the Company to obtain authority
from a regulatory body having jurisdiction, which authority is deemed by the
Company's counsel to be necessary or advisable to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.</font></div>
    <div>&#160;</div>
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    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>11. Termination of Option.
</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">a. Termination as a Director. If an Optionee ceases to be a director,
unless such cessation occurs due to death or disability, then the Option shall
terminate on the date that is thirty (30) days from the date the Optionee ceases
to be a director, or such other date as may be determined by the Board.
</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">b. Disability. Unless otherwise provided in the Stock Option Agreement,
in the event an Optionee is unable to continue to be a member of the Board as a
result of his permanent and total disability (as defined in Section 22(e)(3) of
the Internal Revenue Code of 1986, as amended), he may exercise the Option at
any time within twelve (12) months following the date he ceased to be a
director, but only to the extent he was entitled to exercise it on the date he
ceased to be a director. To the extent that he was not entitled to exercise the
Option on the date he ceased to be a director, or if he does not exercise such
Option (which he was entitled to exercise) within the time specified herein, the
Option shall terminate. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">c. Death. Unless otherwise provided in the Stock Option Agreement, if an
Optionee dies during the term of the Option, the Option may be exercised at any
time within twelve (12) months following the date of death, but only to the
extent that an Optionee was entitled to exercise the Option on the date of
death. To the extent that decedent was not entitled to exercise the Option on
the date of death, or if the Optionee's estate, or person who acquired the right
to exercise the Option by bequest or inheritance, does not exercise such Option
(which he was entitled to exercise) within the time specified herein, the Option
shall terminate. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">12. Option Agreement. Options shall be
evidenced by Stock Option Agreements in such form as the Board shall approve.
</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>13. Miscellaneous Provisions.
</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">a. Plan Expense. Any expenses of administering this Plan shall be borne
by the Company. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">b. Construction of Plan. The validity, construction, interpretation,
administration and effect of the Plan and of its rules and regulations, and
rights relating to the Plan, shall be determined by the Board in accordance with
the laws of the State of Arizona. </font></div>
    <div>&#160;</div>
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    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">c. Taxes. The Company shall be entitled if necessary or desirable to pay
or withhold the amount of any tax attributable to the delivery of Common Shares
under the Plan after giving the person entitled to receive such Shares notice as
far in advance as practical, and the Company may defer making delivery of such
Shares if any such tax may be pending unless and until indemnified to its
satisfaction. Notwithstanding any other provision of the Plan, the tax treatment
of awards under the Plan shall not be, and is not, warranted or guaranteed.
Neither the Company, any subsidiary or affiliate, the Board, any committee
thereof, nor any of their delegatees shall be held liable for any taxes,
penalties, or other monetary amounts owed by an Optionee, his beneficiary, or
other person as a result of the grant, modification, or amendment of an award
hereunder or the adoption, modification, amendment, or administration of the
Plan. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">d. Gender. For purposes of this Plan, words used in the masculine gender
shall include the female and neuter, and the singular shall include the plural
and vice versa, as appropriate. </font></div>
    <div>&#160;</div>
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    <div align="center"><font size="2" style="FONT-FAMILY: serif">NON-EMPLOYEE DIRECTORS
STOCK OPTION AGREEMENT </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">EXHIBIT A
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">NON-EMPLOYEE DIRECTORS
STOCK OPTION AGREEMENT </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">BY THIS DIRECTORS STOCK OPTION AGREEMENT (the
"Agreement"), AMTECH SYSTEMS, INC., an Arizona corporation (the "Company"), and
the undersigned, a non-employee director of the Company (the "Optionee"), desire
to establish the terms and conditions upon which the Company is willing to grant
the Optionee, and upon which the Optionee is willing to accept from the Company,
an Option to purchase shares of Common Stock from the Company, pursuant to the
terms and conditions of the Company's Non-Employee Directors Stock Option Plan
(the "Plan"). </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company and the
Optionee hereby agree as follows: </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">1. The Plan. All the terms, conditions and
definitions of the Plan are hereby incorporated by reference into this
Agreement, as if fully set forth herein. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>2. Terms of Grant. </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>(a) Exercise Price:
$____________</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>(b) Number of Shares
Subject to Option: __________ Shares of Common Stock</font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>(c) Grant Date:
______________, _____</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>DATED: ________________,
_____</font></div>
    <div>&#160;</div>
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<tr>
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              <div align="left"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS,
      INC. </font></div>
              <div>&#160;</div>
              <div align="center"><font style="FONT-FAMILY: serif"><font size="2" style="FONT-FAMILY: serif">By
      ______________________________________</font></font></div>
              <div>&#160;</div>
              <div align="center"><font size="2" style="FONT-FAMILY: serif">Its </font><font size="2" style="FONT-FAMILY: serif">______________________________<br></font></div>
              <div>&#160;</div>
              <div align="left"><font size="2" style="FONT-FAMILY: serif">OPTIONEE:&#160;</font></div>
              <div>&#160;</div>
              <div align="center"><font size="2" style="FONT-FAMILY: serif">_________________________________________ </font></div>
              <div>&#160;</div>
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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>exhibit10-2.htm
<DESCRIPTION>AMTECH SYSTEMS, INC. 2007 EMPLOYEE STOCK INCENTIVE PLAN
<TEXT>
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    <title>exhibit10-2.htm</title>
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    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2007 EMPLOYEE STOCK<br>INCENTIVE
PLAN<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">OF<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC.</font></font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">As Amended Effective March 11,
2010</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 1. Purpose of Plan</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The purpose of this 2007 Employee Stock
Incentive Plan (this &#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Plan</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;) of Amtech Systems, Inc., an Arizona
corporation (the &#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Company</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;), is to enable the Company and any
subsidiary corporation (as the term is defined in Code Section 424(f),
hereinafter each a &#8220;Subsidiary&#8221; or the plural &#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Subsidiaries</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;) to attract, retain and motivate their
officers and other key employees, and to further align the interests of such
persons with those of the stockholders of the Company by providing for or
increasing the proprietary interest of such persons in the Company. The Plan is
intended to fall within an exception to coverage under Section 409A of the
Internal Revenue Code.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 2. Administration of
Plan</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">2.1 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Composition of Committee.</font></font><font size="2" style="FONT-FAMILY: serif"> This Plan shall be administered by the Compensation and Option Committee
of the Board of Directors (the &#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Committee</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;), as appointed from time to time by the
Board of Directors. The Committee shall act pursuant to a majority vote or
unanimous written consent. The Board of Directors, in its sole discretion, may
exercise any authority of the Committee under this Plan in lieu of the
Committee&#8217;s exercise thereof. Notwithstanding the foregoing, with respect to any
Award that is intended to satisfy the conditions of Rule 16b-3 under the
Securities Exchange Act of 1934, as amended (the &#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Exchange Act</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;) or Section 162(m)(4)(C) of the Internal
Revenue Code of 1986, as amended (the &#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Code</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;), the Committee may appoint one or more
separate committees (any such committee, a &#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Subcommittee</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;) composed of one or more directors of the
Company (who may but need not be members of the Committee) and may delegate to
any such Subcommittee(s) the authority to grant Awards, as defined in Section
5.1 hereof, under the Plan to Eligible Employees, to determine all terms of such
Awards, and/or to administer the Plan or any aspect of it. Any action by any
such Subcommittee within the scope of such delegation shall be deemed for all
purposes to have been taken by the Committee. The Committee may designate the
Secretary of the Company or other Company employees to assist the Committee in
the administration of the Plan, and may grant authority to such persons to
execute agreements or other documents evidencing Awards made under this Plan or
other documents entered into under this Plan on behalf of the Committee or the
Company. </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">2.2 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Powers of the Committee. </font></font><font size="2" style="FONT-FAMILY: serif">Subject to the express provisions of this Plan, the Committee shall be
authorized and empowered to do all things necessary or desirable, in its sole
discretion, in connection with the administration of this Plan, including,
without limitation, the following:</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a) to prescribe, amend and rescind rules and
regulations relating to this Plan and to define terms not otherwise defined
herein; provided that, unless the Committee specifies otherwise, for purposes of
this Plan (i) the term &#8220;fair market value&#8221; shall mean, as of any date, the
closing price for a Share (as defined in Section 3.1) reported for the last
trading day prior to such date by the NASDAQ Stock Market (or such other stock
exchange or quotation system on which Shares are then listed or quoted) or, if
no Shares are traded on the NASDAQ Stock Market (or such other stock exchange or
quotation system) on the date in question, then for the next preceding date for
which Shares traded on the NASDAQ Stock Market (or such other stock exchange or
quotation system); and (ii) the term &#8220;Company&#8221; shall mean the Company and its
Subsidiaries, unless the context otherwise requires;</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(b) to determine which persons are Eligible
Employees (as defined in Section 4), to which of such Eligible Employees, if
any, Awards shall be granted hereunder and the timing of any such Awards, and to
grant Awards;</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(c) to grant Awards to Eligible Employees and
determine the terms and conditions thereof, including the number of Shares
subject to Awards and the exercise or purchase price of such Shares and the
circumstances under which Awards become exercisable or vested or are forfeited
or expire, which terms may but need not be conditioned upon the passage of time,
continued employment, the satisfaction of performance criteria, the occurrence
of certain events (including events which the Board or the Committee determine
constitute a change of control), whether such Award complies with Code Section
409A, Notice 2005-1, Proposed Treasury Regulations Sections 1.409-1 through
1.409-6, (and after December 31, 2007 (or sooner at the election of the
Committee), Treasury Regulations Sections 1.409A-1 through 1.409A-6) or other
factors;</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(d) to establish, verify the extent of
satisfaction of, adjust, reduce or waive any performance goals or other
conditions applicable to the grant, issuance, exercisability, vesting and/or
ability to retain any Award and to consider the effect of such actions on the
qualification of an Award as an ISO. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(e) to prescribe and amend the terms of the
agreements or other documents evidencing Awards made under this Plan (which need
not be identical);</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(f) to determine whether, and the extent to
which, adjustments are required pursuant to Section 9; </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(g) to interpret and construe this Plan, any
rules and regulations under this Plan and the terms and conditions of any Award
granted hereunder, and to make exceptions to any such provisions in good faith
and for the benefit of the Company; and</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(h) to make all other determinations deemed
necessary or advisable for the administration of this Plan. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">2 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">2.3 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Determinations of the Committee.</font></font><font size="2" style="FONT-FAMILY: serif"> All decisions, determinations and
interpretations by the Committee regarding this Plan shall be final and binding
on all Eligible Employees. The Committee shall consider such factors as it deems
relevant to making such decisions, determinations and interpretations including,
without limitation, the recommendations or advice of any director, officer or
employee of the Company and such attorneys, consultants and accountants as it
may select.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 3. Stock Subject to
Plan</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">3.1 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Aggregate Limits. </font></font><font size="2" style="FONT-FAMILY: serif">The aggregate number of shares of the Company&#8217;s Common Stock, par value
$0.01 per share (&#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Shares</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;), issued pursuant to all Awards granted
under this Plan shall not exceed One Million Four Hundred Thousand (1,400,000).
The aggregate number of Shares available for issuance under this Plan and the
number of Shares subject to outstanding Awards shall be subject to adjustment as
provided in Section 9. The Shares issued pursuant to this Plan may be Shares
that either were reacquired by the Company, including Shares purchased in the
open market, or authorized but unissued Shares.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">3.2 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Additional Limits. </font></font><font size="2" style="FONT-FAMILY: serif">The aggregate number of Shares subject to Options granted under this Plan
during any calendar year to any one Eligible Employee shall not exceed 250,000
(taking into account the number of shares associated with an Option granted and
then cancelled during such calendar year). The aggregate number of Shares issued
or issuable under all Awards granted under this Plan, other than Options, during
any calendar year to any one Eligible Employee shall not exceed 250,000 (taking
into account the number of shares associated with the Awards other than Options
granted and then cancelled during such calendar year). The foregoing limitations
of this Section 3.2 shall not apply to the extent that they are no longer
required in order for compensation in connection with grants of Awards under
this Plan to be treated as &#8220;performance-based compensation&#8221; under Code Section
162(m) and, if no longer required, a change in such limitation shall not be
subject to stockholder approval as required under Section 12 hereof. The
aggregate number of Shares that may be issued pursuant to the exercise of ISOs
granted under this Plan shall not exceed 1,400,000, which number shall be
calculated and adjusted pursuant to Section 3.3 and Section 9 only to the extent
that such calculation or adjustment will not (i) require shareholder approval
under Reg. &#167; 1.422-2(b)(3) or (ii) affect the status of any Option intended to
qualify as an ISO under Code Section 422, or whether this Plan meets the
requirements under Code Section 422(b)(1). </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">3.3 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Issuance of Shares. </font></font><font size="2" style="FONT-FAMILY: serif">For purposes of Section 3.1, the aggregate number of Shares issued under
this Plan at any time shall equal only the number of Shares actually issued upon
exercise or settlement of an Award and shall not include Shares subject to
Awards that have been canceled, expired or forfeited or Shares subject to Awards
that have been delivered (either actually or constructively by attestation) to
or retained by the Company in payment or satisfaction of the purchase price or
exercise price of an Award. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">3 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 4. Persons Eligible Under
Plan</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Any person who is an employee or prospective
employee of the Company or any of its Subsidiaries shall be eligible to be
considered for the grant of Awards hereunder; provided that the Award to such
prospective employee is conditioned on the prospective employee&#8217;s commencement
of employment (an &#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Eligible Employee</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;); provided, however, with respect to ISOs
granted under this Plan, the aggregate fair market value (determined at the time
the ISO is granted) of the Shares with respect to which the ISOs are exercisable
for the first time by the optionee during any calendar year (under the plans of
the Company) shall not exceed $100,000.00. If any ISO is granted that exceeds
the limitations of this Section 4 at the first time it is exercisable, it shall
not be invalid, but shall constitute, and be treated as, a Nonqualified Option
to the extent of such excess. The status of the chairman of the Board of
Directors as an &#8220;employee&#8221; shall be determined by the Committee.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 5. Plan Awards</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">5.1 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Award Types. </font></font><font size="2" style="FONT-FAMILY: serif">The
Committee, on behalf of the Company, is authorized under this Plan to enter into
certain types of arrangements with Eligible Employees and to confer certain
benefits on them. The following arrangements or benefits are authorized under
this Plan if their terms and conditions are not inconsistent with the provisions
of this Plan: Options and Restricted Stock. Such arrangements and benefits are
sometimes referred to herein as &#8220;Awards.&#8221; The authorized types of arrangements
and benefits for which Awards may be granted are defined as
follows:</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a) Options. An Option is a right granted
under Section 6 to purchase a number of Shares at such exercise price, at such
times, and on such other terms and conditions as are specified in the agreement
or terms and conditions or other document evidencing the Award (the
&#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Option Document</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;). Options intended to qualify as Incentive
Stock Options </font><font size="2" style="FONT-FAMILY: serif">(&#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">ISOs</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;) pursuant to Code Section 422 and Options
not intended to qualify as ISOs </font><font size="2" style="FONT-FAMILY: serif">(&#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Nonqualified Options</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;) may be granted under Section
6.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(b) Restricted Stock. Restricted Stock is an
award or issuance of Shares under Section 7, subject to certain restrictions and
the risk of forfeiture and terms as are expressed in the agreement or other
document evidencing the Award. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">5.2 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Grants of Awards. </font></font><font size="2" style="FONT-FAMILY: serif">An Award may consist of one such arrangement or benefit or two or more of
them in tandem, and the terms as established by the Committee for all Awards
granted hereunder may include performance standards derived from the Qualifying
Performance Criteria (as defined in Section 8.2 hereof), and the receipt of any
Award may be contingent on performance standards derived from the Qualifying
Performance Criteria.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 6. Options</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The Committee may grant an Option or provide
for the grant of an Option, either from time to time in the discretion of the
Committee or automatically upon the occurrence of specified events, including,
without limitation, the achievement of performance goals, the satisfaction of an
event or condition within the control of the recipient of the Award or within
the control of others.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">4 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">6.1 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Option Document. </font></font><font size="2" style="FONT-FAMILY: serif">Each Option Document shall contain provisions regarding (a) the number of
Shares that may be issued upon exercise of the Option, (b) the purchase price of
the Shares and the means of payment for the Shares, (c) the term of the Option,
(d) such terms and conditions on the vesting and/or exercisability of an Option
as may be determined from time to time by the Committee, (e) restrictions on the
transfer of the Option and forfeiture provisions and (f) such further terms and
conditions, in each case not inconsistent with this Plan as may be determined
from time to time by the Committee. Option Documents evidencing ISOs shall
contain such terms and conditions as may be necessary to qualify, to the extent
determined desirable by the Committee, with the applicable provisions of Section
422 of the Code.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">6.2 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Option Price. </font></font><font size="2" style="FONT-FAMILY: serif">Subject to the restriction set forth in the following sentence, the
purchase price per share of the Shares subject to each Option granted under this
Plan shall equal or exceed 100% of the fair market value of a Share on the date
the Option is granted. The previous sentence notwithstanding, if, immediately
before an Award intended to qualify as an ISO, an individual owns (or is treated
as owning under the Code) stock possessing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company (or any
related corporation within the meaning of Reg. &#167; 1.421-1(i)(2)) employing the
optionee, the purchase price shall be in no event less than one hundred ten
percent (110%) of the stock&#8217;s fair market value on the date of
grant.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">6.3 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Option Term. </font></font><font size="2" style="FONT-FAMILY: serif">The
&#8220;Term&#8221; of each Option granted under this Plan, including any ISOs, shall be ten
(10) years from the date of its grant, unless (i) the Company makes an Award
intended to qualify as an ISO to an individual who owns (or is treated as owning
under the Code) stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company (or any related
corporation within the meaning of Reg. &#167; 1.421-1(i)(2)) employing the optionee,
in which case, the term shall be five (5) years from the date of its grant or
(ii) the Committee provides for a lesser term.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">6.4 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Option Vesting.</font></font><font size="2" style="FONT-FAMILY: serif">
Options granted under this Plan shall be exercisable at such time and in such
installments during the period prior to the expiration of the Option&#8217;s Term as
determined by the Committee. The Committee shall have the right to make the
timing of the ability to exercise any Option granted under this Plan subject to
continued employment, the passage of time and/or such performance requirements
as deemed appropriate by the Committee.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">5 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>6.5 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Termination of Status as and Employee.</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a)</font> <font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Termination of Employment</font></font><font size="2" style="FONT-FAMILY: serif">. Unless otherwise provided in an Award
Agreement relating to an Option, if the employment of an Eligible Employee by
the Company is terminated, whether voluntary or for cause, except if such
termination occurs due to retirement, death or disability, the Option, to the
extent not exercised, shall cease on the date on which Eligible Employee&#8217;s
employment by the Company is terminated. For purposes of this Section 6.5, an
Eligible Employee who leaves the employ of the Company to become an employee of
a subsidiary or parent corporation of the Company or a corporation which has
assumed the Option of the Company as a result of a corporate reorganization,
etc., shall not be considered to have terminated his employment. For purposes of
this Section 6.5, the employment relationship of an employee of the Company or
of a subsidiary corporation of the Company will be treated as continuing intact
while he is on military or sick leave or other bona fide leave of absence (such
as temporary employment by the government) if such leave does not exceed ninety
(90) days, or, if longer, so long as his right to reemployment is guaranteed
either by statute or by contract.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(b) </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Retirement</font></font><font size="2" style="FONT-FAMILY: serif">. For purposes of the Plan, the retirement of
an individual either pursuant to a pension or retirement plan adopted by the
Company or at the normal retirement date prescribed from time to time by the
Company, shall be deemed to be a termination of such individual's employment
other than voluntary or for cause. If an Eligible Employee&#8217;s termination is due
to retirement, then the Eligible Employee may, but only within ninety (90) days
after the date he ceases to be an employee of the Company, exercise his Option
to the extent that he was entitled to exercise it at the date of such
termination. To the extent that he was not entitled to exercise the Option at
the date of such termination, or if he does not exercise such Option (which he
was entitled to exercise) within the time specified herein, the Option shall
terminate.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(c) </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Disability</font></font><font size="2" style="FONT-FAMILY: serif">. Unless otherwise provided in an Award
Agreement relating to an Option, in the event an Eligible Employee is unable to
continue his employment with the Company as a result of his permanent and total
disability (as defined in Section 22(e)(3) of the Code), he may, but only within
one (1) year from the date of termination, exercise his Option to the extent he
was entitled to exercise it at the date of such termination. To the extent that
he was not entitled to exercise the Option at the date of termination, or if he
does not exercise such Option (which he was entitled to exercise) within the
time specified herein, the Option shall terminate.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(d) </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Death of Eligible Employee</font></font><font size="2" style="FONT-FAMILY: serif">. Unless otherwise provided in an Award
Agreement relating to an Option, if an Eligible Employee dies during the term of
the Option and is at the time of his death an employee of the Company who shall
have been in continuous status as an employee since the date of grant of the
Option, the Option may be exercised at any time within one (1) year following
the date of death (or such other period of time as is determined by the
Committee), by the Eligible Employee&#8217;s estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent
that Eligible Employee was entitled to exercise the Option on the date of death.
To the extent that decedent was not entitled to exercise the Option on the date
of death, or if the Eligible Employee&#8217;s estate, or person who acquired the right
to exercise the Option by bequest or inheritance, does not exercise such Option
(which he was entitled to exercise) within the time specified herein, the Option
shall terminate.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">6 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">6.6 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Payment of Exercise Price. </font></font><font size="2" style="FONT-FAMILY: serif">The exercise price of an Option shall be paid in the form of one of more
of the following, as the Committee shall specify, either through the terms of
the Option Document or at the time of exercise of an Option: (a) cash or
certified or cashiers&#8217; check, (b) payment under an arrangement with a broker
selected or approved by the Company where payment is made pursuant to an
irrevocable commitment by the broker to deliver to the Company proceeds from the
sale of the Shares issuable upon exercise of the Option, or (c) a combination of
(a) and (b).</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">6.7 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">No Deferral Feature</font></font><font size="2" style="FONT-FAMILY: serif">. No Option shall have any feature that would allow for the deferral of
compensation (within the meaning of Internal Revenue Code Section 409A) other
than the deferral of recognition of income until the later of the exercise or
disposition of the Option or the time the shares of Stock acquired subject to
the exercise of the Option first become substantially vested (as defined in
Treasury Regulation section 1.83-3(b)). </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">6.8 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">No Option Repricing. </font></font><font size="2" style="FONT-FAMILY: serif">Without the approval of stockholders, the Company shall not reprice any
Options. For purposes of this Plan, the term &#8220;reprice&#8221; shall mean lowering the
exercise price of previously awarded Options within the meaning of Item 402(i)
under Securities and Exchange Commission Regulation S-K (including canceling
previously awarded Options and regranting them with a lower exercise
price).</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 7. Restricted Stock
Awards</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The Committee is authorized to make Awards of
Restricted Stock to Eligible Employees in such amounts and subject to such terms
and conditions as may be determined by the Committee. All Awards of Restricted
Stock shall be evidenced by a Restricted Stock Award Agreement.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">7.1 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Issuance and Restrictions. </font></font><font size="2" style="FONT-FAMILY: serif">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 of such times, under such circumstances, in such
installments, upon the satisfaction of continued employment, standards derived
from the Qualifying Performance Criteria, lapse of time, certain acceleration
events like death or disability or otherwise, as the Committee determines at the
time of the grant of the Award or thereafter.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">7.2 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Forfeiture.</font></font><font size="2" style="FONT-FAMILY: serif"> Except
as otherwise determined by the Committee at the time of the grant of the Award
or thereafter, upon termination of employment during the applicable restriction
period or upon failure to satisfy a standard derived from the Qualifying
Performance Criteria during the applicable restriction period, Restricted Stock
that is at that time subject to restrictions shall be forfeited and re-acquired
by the Company; provided, however, that the Committee may provide in any 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.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">7 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    </div><br>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">7.3 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Certificates for Restricted Stock. </font></font><font size="2" style="FONT-FAMILY: serif">Restricted Stock granted under 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
Eligible Employee, certificates must bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Restricted
Stock.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 8. Other Provisions Applicable to
Awards</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">8.1 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Transferability. </font></font><font size="2" style="FONT-FAMILY: serif">Unless the agreement or other document evidencing an Award (or an
amendment thereto authorized by the Committee) expressly states that the Award
is transferable as provided hereunder and the transferability of such Award
complies with Reg. &#167; 1.422-2(a)(2)(v), no Award granted under this Plan, nor any
interest in such Award, may be sold, assigned, conveyed, gifted, pledged,
hypothecated or otherwise transferred in any manner prior to the vesting or
lapse of any and all restrictions applicable thereto. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">8.2 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Qualifying Performance Criteria. </font></font><font size="2" style="FONT-FAMILY: serif">For purposes of this Plan, the term
&#8220;Qualifying Performance Criteria&#8221; shall mean any one or more of the following
performance criteria, either individually, alternatively or in any combination,
applied to either the Company as a whole, to a business unit or subsidiary, or
based on comparisons of any of the performance measures relative to other
companies, either individually, alternatively or in any combination, and
measured either annually or cumulatively over a period of years, on an absolute
basis or relative to a pre-established target, to previous years&#8217; results or to
a designated comparison group, in each case as specified by the Committee in the
Award: (a) cash flow, (b) earnings per share or increases of same, (c) earnings
before interest, taxes and amortization, (d) return on equity, (e) total
stockholder return, (f) share price performance, (g) return on capital or
investment, (h) return on assets or net assets, (i) revenue, (j) income or net
income, (k) operating income or net operating income, (l) operating profit or
net operating profit, (m) operating margin or profit margin, (n) return on
operating revenue, (o) pre-tax or after-tax profit levels expressed in either
absolute dollars, (p) revenues or revenue growth, (q) economic or cash value
added, (r) results of customer satisfaction surveys, (s) other measures of
performance, quality, safety, productivity or process improvement, (t) market
share and (u) overhead or other expense reduction. These factors may have a
minimum performance standard, a target performance standard and a maximum
performance standard. The Committee shall appropriately adjust any evaluation of
performance under a Qualifying Performance Criteria to exclude any of the
following events that occurs during a performance period: (i) asset write-downs,
(ii) litigation or claim judgments or settlements, (iii) the effect of changes
in tax law, accounting principles or other such laws or provisions affecting
reported results, (iv) accruals for reorganization and restructuring programs
and (v) any extraordinary non-recurring items as described in Accounting
Principles Board Opinion No. 30 and/or in management&#8217;s discussion and analysis
of financial condition and results of operations appearing in the Company&#8217;s
annual report to stockholders for the applicable year.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">8 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    </div><br>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">8.3 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Dividends. </font></font><font size="2" style="FONT-FAMILY: serif">Unless
otherwise provided by the Committee, no adjustment shall be made in Shares
issuable under Awards on account of cash dividends that may be paid or other
rights that may be issued to the holders of Shares prior to their issuance under
any Award. The Committee shall specify whether dividends or dividend equivalent
amounts shall be paid to any Eligible Employee with respect to the Shares
subject to any Award that have not vested or been issued or that are subject to
any restrictions or conditions on the record date for dividends. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">8.4 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Documents Evidencing Awards. </font></font><font size="2" style="FONT-FAMILY: serif">The Committee shall, subject to applicable
law, determine the date an Award is deemed to be granted, which for purposes of
this Plan shall not be affected by the fact that an Award is contingent on
subsequent stockholder approval of this Plan. The Committee or, except to the
extent prohibited under applicable law, its delegate(s) may establish the terms
of agreements or other documents evidencing Awards under this Plan and may, but
need not, require as a condition to any such agreement&#8217;s or document&#8217;s
effectiveness that such agreement or document be executed by the Eligible
Employee and that such Eligible Employee agrees to such further terms and
conditions as specified in such agreement or document. The grant of an Award
under this Plan shall not confer any rights upon the Eligible Employee holding
such Award other than such terms, and subject to such conditions, as are
specified in this Plan as being applicable to such type of Award (or to all
Awards) or as are expressly set forth in the agreement or other document
evidencing such Award.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif"> </font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">8.5 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Financing. </font></font><font size="2" style="FONT-FAMILY: serif">Unless
prohibited by federal and state law, or the rules or regulations thereunder, the
Committee may in its discretion provide financing to an Eligible Employee in a
principal amount sufficient to pay the purchase price of any Award and/or to pay
the amount of taxes required by law to be withheld with respect to any Award.
Any such loan shall be subject to all applicable legal requirements and
restrictions pertinent thereto, including Regulation U promulgated by the
Federal Reserve Board. The grant of an Award shall in no way obligate the
Company or the Committee to provide any financing whatsoever in connection
therewith. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">8.6 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Compliance with Code Section 409A. </font></font><font size="2" style="FONT-FAMILY: serif">Notwithstanding any language to the contrary
in this Plan, the Committee will ensure that the terms and conditions of any
Awards issued will comply with the applicable provision of Code Section 409A or
the regulations or other pronouncements thereunder. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">8.7 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Additional Restrictions on Awards.</font></font><font size="2" style="FONT-FAMILY: serif"> Either at the time an Award is granted or by
subsequent action, the Committee may, but need not, impose such restrictions,
conditions or limitations as it determines appropriate as to the timing and
manner of any resales by an Eligible Employee or other subsequent transfers by
an Eligible Employee of any Shares issued under an Award, including without
limitation (a) restrictions under an insider trading policy, (b) restrictions
designed to delay and/or coordinate the timing and manner of sales by Eligible
Employees, and (c) restrictions as to the use of a specified brokerage firm for
such resales or other transfers. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">9 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 9. Changes in Capital Structure
</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">9.1 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Corporate Actions Unimpaired. </font></font><font size="2" style="FONT-FAMILY: serif">The existence of outstanding Awards shall not
affect in any way the right or power of the Company or its stockholders to make
or authorize any or all adjustments, recapitalizations, reorganizations,
exchanges, or other changes in the Company&#8217;s capital structure or its business,
or any merger or consolidation of the Company, or any issuance of Shares or
other securities or subscription rights thereto, or any issuance of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Shares
or other securities of the Company or the rights thereof, or the dissolution or
liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise. Further, except as expressly provided herein or
by the Committee, (a) the issuance by the Company of shares of stock of any
class of securities convertible into shares of stock of any class, for cash,
property, labor or services, upon direct sale, upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or obligations of
the Company convertible into such shares or other securities, (b) the payment of
a dividend in property other than Shares, or (c) the occurrence of any similar
transaction, and in any case whether or not for fair value, shall not affect,
and no adjustment by reason thereof shall be made with respect to, the number of
Shares subject to Awards theretofore granted or the purchase price per Share,
unless the Committee shall determine in its sole discretion that an adjustment
is necessary to provide equitable treatment to an Eligible Employee.
</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">9.2 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Adjustments Upon Certain Events. </font></font><font size="2" style="FONT-FAMILY: serif">If the outstanding Shares or other securities
of the Company, or both, for which the Award is to be settled shall at any time
be changed or exchanged by declaration of a stock dividend, stock split,
combination of shares, recapitalization, or reorganization, the Committee may
appropriately and equitably adjust the number and kind of Shares or other
securities which are subject to the Plan or subject to any Awards theretofore
granted, and the exercise or settlement prices of such Awards, so as to maintain
the proportionate number of Shares or other securities without changing the
aggregate exercise or settlement price, provided, however, that such adjustment
shall be made so as not to affect the status of any Award intended to qualify as
an ISO or as &#8220;performance based compensation&#8221; under Section 162(m) of the Code.
</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 10. Mergers and
Liquidation</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Except as limited by the provisions of Code
Section 422 of the Code and the terms of any individual Award, if the company is
the surviving corporation in any merger or consolidation, all Awards shall
remain in force, and any: (1) Option granted under the Plan shall remain
outstanding pursuant to the terms of the Plan and the Award; and (2) Restricted
Stock granted under the Plan shall continue to be outstanding pursuant to the
terms of the Award and this Plan. Except to the extent otherwise provided in an
Award document, by the Board, or as limited by Code Section 422, dissolution or
liquidation of the Company shall cause every unvested Option, Restricted Stock
or other Award for which there remains contingencies, conditions and unmet
performance standards to terminate. Except as limited by Code Section 422, a
merger or consolidation in which the Company is not the surviving corporation
shall also cause every unvested Option or Restricted Stock for which there
remains contingencies, conditions and unmet performance standards to terminate
unless specifically provided otherwise in an Award document or by the
Board.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">10 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 11. Taxes</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">11.1 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Withholding Requirements. </font></font><font size="2" style="FONT-FAMILY: serif">The Committee may make such provisions or impose such conditions as it
may deem appropriate for the withholding or payment by an Eligible Employee of
any taxes that the Committee determines are required in connection with any
Award granted under this Plan, and an Eligible Employee&#8217;s rights in any Award
are subject to satisfaction of such conditions.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">11.2 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Payment of Withholding Taxes. </font></font><font size="2" style="FONT-FAMILY: serif">Notwithstanding the terms of Section 11.1, the
Committee may provide in the agreement or other document evidencing an Award or
otherwise that all or any portion of the taxes required to be withheld by the
Company or, if permitted by the Committee, desired to be paid by the Eligible
Employee, in connection with the exercise, vesting, settlement or transfer of
any Award shall be paid or, at the election of the Eligible Employee, may be
paid by the Company by withholding shares of the Company&#8217;s capital stock
otherwise issuable or subject to such Award, or by the Eligible Employee
delivering previously owned shares of the Company&#8217;s capital stock, in each case
having a fair market value equal to the amount required or elected to be
withheld or paid, or by a broker selected or approved by the Company paying such
amount pursuant to an irrevocable commitment by the broker to deliver to the
Company proceeds from the sale of the Shares issuable under the Award. Any such
election is subject to such conditions or procedures as may be established by
the Committee and may be subject to approval by the Committee. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 12. Amendments or
Termination</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The Board may amend, alter or discontinue this
Plan or any agreement or other document evidencing an Award made under this Plan
but, except as provided pursuant to the anti-dilution adjustment provisions of
Section 9.2, no such amendment shall, without the approval of the stockholders
of the Company:</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a) change the maximum number of shares of
Common Stock for which Awards may be granted under this Plan;</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>(b) extend the term of this Plan;
or</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>(c) change the class of persons
eligible to be Eligible Employees. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">11 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    </div><br>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The Board may amend, alter or discontinue the
Plan or any agreement evidencing an Award made under the Plan, but no amendment
or alteration shall be made which would impair the rights of any Award holder,
without such holder&#8217;s consent, under any Award theretofore granted; provided
that no such consent shall be required if the Committee determines in its sole
discretion and prior to the date of any change in control, recapitalization,
stock dividend, stock split, reorganization, merger, consolidation or similar
type transaction that such amendment or alteration either is required or
advisable in order for the Company, the Plan, or any Award granted, to satisfy
any law or regulation or to meet the requirements of any accounting
standard.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 13. Compliance with Other Laws and
Regulations</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">This Plan, the grant and exercise of Awards
thereunder, and the obligation of the Company to sell, issue or deliver Shares
under such Awards, shall be subject to all applicable federal, state and foreign
laws, rules and regulations and to such approvals by any governmental or
regulatory agency as may be required. The Company shall not be required to
register in an Eligible Employee&#8217;s name or deliver any Shares prior to the
completion of any registration or qualification of such Shares under any
federal, state or foreign law or any ruling or regulation of any government body
which the Committee shall determine to be necessary or advisable. This Plan is
intended to constitute an unfunded arrangement for the Eligible
Employees.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Unless the Awards and Shares covered by this
Plan have been registered under the Securities Act of 1933, as amended, or the
Company has determined that such registration is unnecessary, each person
receiving an Award and/or Shares pursuant to any Award may be required by the
Company to give a representation in writing that such person is acquiring such
Shares for his or her own account for investment and not with a view to, or for
sale in connection with, the distribution of any part thereof.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 14. No Right to Company
Employment</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Nothing in this Plan or as a result of any
Award granted pursuant to this Plan shall confer on any individual any right to
continue in the employ of the Company or interfere in any way with the right of
the Company to terminate an individual&#8217;s employment at any time. The agreements
or other documents evidencing Awards may contain such provisions as the
Committee may approve with reference to the effect of approved leaves of
absence.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 15. Liability of
Company</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">The Company and any Affiliate which is in
existence or hereafter comes into existence shall not be liable to an Eligible
Employee or other persons as to:</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a) The Non-Issuance of Shares. The
non-issuance or sale of shares as to which the Company has been unable to obtain
from any regulatory body having jurisdiction the authority deemed by the
Company&#8217;s counsel to be necessary to the lawful issuance and sale of any shares
hereunder; and</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif"><font size="2" style="FONT-FAMILY: serif">(b)
Tax Consequences. Any tax consequence expected, but not realized, by any
Eligible Employee or other person due to the receipt, exercise or settlement of
any Award granted hereunder. </font></font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">12 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 16. Effectiveness and Expiration of
Plan</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">This Plan shall be effective on the date the
Company&#8217;s Board of Directors adopts this Plan, and no ISOs shall be granted
prior to such date. All Awards granted under this Plan are subject to, and may
not be exercised before the approval of this Plan by the stockholders. If such
approval by the stockholders of the Company is not forthcoming, all Awards
previously granted under this Plan shall be void. No Awards shall be granted
pursuant to this Plan after March 11, 2020. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 17. Incentive Stock
Options</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Notwithstanding anything in the Plan to the
contrary, it is the intention of the Company and the Committee that all terms
and provisions relating to ISOs of this Plan shall be consistent with the
requirements of Code Section 422 and the applicable regulations thereunder, as
of the effective date of this plan, and to the extent any term or provision of
this Plan relating to ISOs is inconsistent with Code Section 422 and the
applicable regulations thereunder at that date, the term or provision shall be
read, interpreted or substituted so as to be consistent with the applicable
provision of Code Section 422 or the regulations thereunder. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 18. Non-Exclusivity of
Plan</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Neither the adoption of this Plan by the Board
nor the submission of this Plan to the stockholders of the Company for approval
shall be construed as creating any limitations on the power of the Board or the
Committee to adopt such other incentive arrangements as either may deem
desirable, including without limitation, the granting of restricted stock or
stock options otherwise than under this Plan, and such arrangements may be
either generally applicable or applicable only in specific cases.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 19. Governing Law</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">This Plan and any agreements or other
documents hereunder shall be interpreted and construed in accordance with the
laws of the State of Arizona and applicable federal law. The Committee may
provide that any dispute as to any Award shall be presented and determined in
such forum as the Committee may specify, including through binding arbitration.
Any reference in this Plan or in the agreement or other document evidencing any
Award to a provision of law or to a rule or regulation shall be deemed to
include any successor law, rule or regulation of similar effect or
applicability.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">13 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Section 20. Miscellaneous Matters
</font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">20.1 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Annulment of Awards. </font></font><font size="2" style="FONT-FAMILY: serif">The grant of any Award payable in Shares is provisional until the
Eligible Employee becomes entitled to the certificates in settlement thereof. In
the event the employment of an Eligible Employee is terminated for cause (as
defined below), any Award which is provisional shall be annulled as of the date
of such termination for cause. For the purpose of this Section 21.1, the term
&#8220;terminated for cause&#8221; means any discharge for violation of the policies and
procedures of the Company or any Subsidiary or for other job performance or
conduct which is detrimental to the best interests of the Company or a
Subsidiary.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif"> </font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">20.2 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Securities Law Restrictions.</font></font><font size="2" style="FONT-FAMILY: serif"> No Shares shall be issued under the Plan
unless counsel for the Company shall be satisfied that such issuance will be in
compliance with applicable Federal and state securities laws. Certificates for
Shares delivered under the Plan may be subject to such stock-transfer orders and
other restrictions as the Committee may deem advisable under the rules,
regulations, and other requirements of the Securities and Exchange Commission,
any stock exchange upon which the Shares is then listed, and any applicable
Federal or state securities law. The Committee may cause a legend or legends to
be put on any such certificates to refer to those restrictions. Further, without
limiting the foregoing, each person exercising an Option or receiving Restricted
Stock may be required by the Company to give a representation in writing that he
or she is acquiring Shares for his or her own account for investment and not
with a view to, or for sale in connection with, the distribution of any part
thereof (regardless of whether such option and Shares covered by the Plan are
registered under the Securities Act of 1933, as amended). As a condition of
transfer of the certificate evidencing Shares, the Committee may obtain such
other agreements or undertakings, if any, that it may deem necessary or
appropriate to assume compliance with any provisions of the Plan or any law or
regulation. Certificates for Shares delivered under the Plan may be subject to
such stock transfer orders and other restrictions as the Board may deem
advisable under the rules, regulations, and other requirements of the Securities
and Exchange Commission, any stock exchange upon which the Shares are then
listed, and any applicable Federal or state securities laws. The Board may cause
a legend or legends to be put on any such certificate to refer to those
restrictions.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif"> </font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">20.3 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Award Agreement. </font></font><font size="2" style="FONT-FAMILY: serif">Each Eligible Employee receiving an Award under the Plan shall enter into
an, Award Agreement (&#8220;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Award Agreement</font></font><font size="2" style="FONT-FAMILY: serif">&#8221;) with the Company in a form specified by the
Committee agreeing to the terms and conditions of the Award and such related
matters as the Committee, in its sole discretion, shall determine.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif"> </font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">20.4 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Costs of Plan. </font></font><font size="2" style="FONT-FAMILY: serif">The
costs and expenses of administering the Plan shall be borne by the Company.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">14 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">20.5 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Tax Reimbursement Payments to Eligible Employees. </font></font><font size="2" style="FONT-FAMILY: serif">Unless prohibited by federal and state law, or
the rules and regulations thereunder, the Committee, pursuant to the terms of
the agreements or other documents pursuant to which specific Awards are made
under the Plan, may agree to reimburse Eligible Employees for some or all of the
federal, state and local income taxes associated with the grant or exercise of
an Award or the receipt of the cash or Shares from an Award (including any
additional tax imposed due to Code Section 409A), or the 20% excise tax on any
&#8220;excess parachute payments&#8221; under Code Sections 280G and Code Section 4999, and
may agree to reimburse such Eligible Employees for some or all the additional
federal, state and local income tax associated with the payments made under this
Section 20.5.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">20.6 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Government Regulations.</font></font><font size="2" style="FONT-FAMILY: serif"> The Plan and the granting and exercise of Options and Shares hereunder,
and the obligations of the Company to sell and deliver Shares under Options,
shall be subject to all applicable laws, rules and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may
be required.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif"> </font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">20.7 </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Interpretation. </font></font><font size="2" style="FONT-FAMILY: serif">If
any provision of the Plan is held invalid for any reason, such holding shall not
affect the remaining provisions of the Plan, but instead the Plan shall be
construed and enforced as if such provisions had never been included in the
Plan. Headings contained in the Plan are for convenience only and shall in no
manner be construed as part of this Plan. Any reference to the masculine,
feminine or neuter gender shall be a reference to such other gender as is
appropriate. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">*** </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">15 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>exhibit10-3.htm
<DESCRIPTION>AMENDED AND RESTATED EMPLOYMENT AGREEMENT
<TEXT>
<html>
<head>
    <title>exhibit10-3.htm</title>
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    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">AMENDED AND RESTATED EMPLOYMENT AGREEMENT
</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160; </font>AMENDED AND RESTATED EMPLOYMENT
AGREEMENT, dated this ____ day of ___________, 2010 (the &#8220;Agreement&#8221;), between
Amtech Systems, Inc., an Arizona corporation (the &#8220;Company&#8221;) with offices at 131
South Clark Drive, Tempe, Arizona, and Jong S. Whang (the &#8220;Executive&#8221;),
</font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">W I T N E S S E T H</font></font><font size="2" style="FONT-FAMILY: serif">: </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160; <font size="2" style="FONT-FAMILY: serif">WHEREAS, the Company and the Executive previously entered into an
Employment Agreement dated April 13, 2007; and </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160; </font>WHEREAS, such Employment Agreement was
amended by the Amendment to Employment Agreement, dated March 10, 2008, and the
409A Amendment to Employment Agreement, dated December 31, 2008 (collectively,
the &#8220;Amendments&#8221;); and </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160; </font>WHEREAS, the Initial Term of such
Employment Agreement expires on April 13, 2010; and </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160; </font>WHEREAS, the Company and the Executive
wish to extend the Executive&#8217;s employment on terms and conditions generally
consistent with the Employment Agreement and the Amendments, and as otherwise
provided herein; </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160; </font>NOW, THEREFORE, the Company and the
Executive hereby enter into an employment and compensation arrangement on the
following terms and conditions: </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">1.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Employment</font></font><font size="2" style="FONT-FAMILY: serif">. Subject to the terms and conditions of this
Agreement, the Company agrees to employ the Executive as its Chief Executive
Officer during the Employment Period (as defined in Section 7) and Executive
agrees to perform such acts and duties and furnish such services to the Company
and its affiliates consistent with such position as the Company&#8217;s Board of
Directors shall from time to time direct. The Executive shall have general and
active charge of the business and affairs of the Company and, in such capacity,
shall have responsibility for the day-to-day operations of the Company, subject
to the authority and control of the Board of Directors of the Company. During
the Employment Period, the Company shall continue to take such actions as
necessary to cause the Executive&#8217;s nomination as a member of the Board of
Directors of the Company. The Executive hereby accepts such employment and
agrees to devote his full time and best efforts to the duties provided herein,
provided, that the Executive may engage in other business activities which (i)
involve no conflict of interest with the interests of the Company (subject to
approval by the Board of Directors, which approval shall not be unreasonably
withheld) and (ii) do not materially interfere with the performance by the
Executive of his duties under this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">2.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Compensation</font></font><font size="2" style="FONT-FAMILY: serif">. For services rendered to the Company during
the term of this Agreement, the Company shall compensate the Executive with an
initial base salary, payable in monthly installments, of $350,000 per annum.
Such base salary shall be reviewed on an annual basis by the Compensation
Committee of the Company&#8217;s Board of Directors (the &#8220;Compensation Committee&#8221;) and
shall be subject to being increased but not decreased in the discretion of the
Compensation Committee.</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br><a name="page_2"><!--EFPlaceholder-->
</a>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">3.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Incentive Compensation</font></font><font size="2" style="FONT-FAMILY: serif">. The Executive shall also be entitled to
annual cash bonuses for each fiscal year during the Employment Period
(&#8220;Incentive Compensation&#8221;). The Executive&#8217;s Incentive Compensation for each such
fiscal year shall be determined in accordance with an annual bonus plan adopted
by the Compensation Committee, which shall be no less favorable to the Executive
than the bonus plan for fiscal 2010 adopted by the Compensation Committee on
December 21, 2009. Any bonus due to Executive will be paid within 75 days after
the end of the Company&#8217;s fiscal year. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>4.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Stock Options</font></font><font size="2" style="FONT-FAMILY: serif">. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Outstanding Options and Restricted
Stock</font></font><font size="2" style="FONT-FAMILY: serif">. All currently
outstanding options to purchase Common Stock of the Company and all restricted
stock grants held by Executive shall remain in full force and effect in
accordance with the provisions of Employer&#8217;s stock option and restricted stock
plans and the applicable Stock Option Agreements, as may be amended from time to
time. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(b)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">New Options and Restricted
Stock</font></font><font size="2" style="FONT-FAMILY: serif">. As further
compensation, Employee shall be issued an annual grant of stock options and
restricted stock by the Compensation Committee within ninety (90) days after the
end of each fiscal year during the Employment Period. The amount of such grant
and the terms of vesting shall be as determined by the Compensation Committee,
but shall be no less favorable to the Executive than the amounts and terms of
the grant approved by the Compensation Committee on November 20, 2009. All of
the stock options granted to Executive shall be &#8220;Incentive Stock Options&#8221; within
the meaning of the Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;),
subject to the limitations of the Code. Any stock options which are not allowed
to be incentive stock options under the Code shall be non-qualified stock
options. The stock options shall be issued at the fair market value of the
Company&#8217;s common stock as of the date of grant. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">5.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Benefits</font></font><font size="2" style="FONT-FAMILY: serif">. During the Employment Period, the Company
shall provide or cause to be provided to the Executive such employee benefits as
are provided to other executive officers of the Company, including family
medical, dental, vision, disability and life insurance, and participation in
pension and retirement plans, incentive compensation plans, stock option plans,
Company-sponsored welfare benefit plans for disability and life insurance and
other benefit plans. During the Employment Period, the Company may provide or
cause to be provided to the Executive such additional benefits as the Company
may deem appropriate from time to time. The Company shall also provide the
Executive with an annual automobile allowance of not less than $14,000, as well
as a life insurance policy in the face amount of $500,000 with Executive&#8217;s
spouse as the beneficiary. At Executive&#8217;s request, the Company shall transfer
ownership of such life insurance policy to the Executive or his designee, at
such time and in such a manner as to minimize any adverse tax consequences to
the Executive. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">6.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Vacation</font></font><font size="2" style="FONT-FAMILY: serif">. The Executive shall be entitled to annual
vacations in accordance with the Company&#8217;s vacation policies in effect from time
to time for executive officers of the Company. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">2 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br><a name="page_3"><!--EFPlaceholder-->
</a>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">7.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Term: Employment Period</font></font><font size="2" style="FONT-FAMILY: serif">. The &#8220;Employment Period&#8221; shall commence on
the date of this Agreement (the &#8220;Effective Date&#8221;) and shall continue for an
initial term of three (3) years (the &#8220;Initial Term&#8221;). Thereafter, the Employment
Period shall continue for successive one (1) year terms (the &#8220;Additional Terms&#8221;)
unless either the Company or the Executive provides written notice of
termination of the Employment Period not less than one hundred twenty (120) days
prior to the end of the Initial Term or any Additional Term (collectively, the
&#8220;Term&#8221;), or unless earlier terminated pursuant to Section 8. If the Executive
shall remain in the full time employ of the Company beyond the Employment Period
without any written agreement between the parties, this Agreement shall be
deemed to continue on a month to month basis and either party shall have the
right to terminate this Agreement at the end of any ensuing calendar month on
written notice of at least thirty (30) days. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>8.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Termination</font></font><font size="2" style="FONT-FAMILY: serif">. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">Executive&#8217;s employment with the company shall be &#8220;at will&#8221;. Either the
Company or the Executive may terminate this Agreement and Executive&#8217;s employment
at any time, with or without Cause or Good Reason (as such terms are defined
below), in its or his sole discretion, upon thirty (30) days prior written
notice of termination. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(b)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">Without limiting the foregoing Section 8(a), (i) the Executive may
terminate his employment with the company at any time for Good Reason, or (ii)
the Company may terminate his employment at any time for Cause. &#8220;Good Reason&#8221;
shall mean (i) the Company&#8217;s failure to elect or reelect, or to appoint or
reappoint, Executive to the office of Chief Executive Officer of the Company;
(ii) material changes by the Company in the Executive&#8217;s function, duties or
responsibilities (including reporting responsibilities) of a scope less than
that associated with the position of Chief Executive Officer of the Company;
(iii) Executive&#8217;s base salary is reduced by the Company below the highest base
salary of Executive in effect during the Employment Period; (iv) relocation of
Executive&#8217;s principal place of employment to a place that is not within either
the city limits of Tempe, Arizona, or within a radius of twenty (20) miles of
his primary residence; (v) failure by the Company to obtain the assumption of
this Agreement by any successor or assign of the Company; (vi) material breach
of this Agreement by the Company, which breach is not cured within five (5) days
after written notice thereof is delivered to the Company; or (vii) the
occurrence of a Change of Control (as defined in Section 18). &#8220;Cause&#8221; shall mean
(i) the Executive&#8217;s willful, repeated or negligent failure to perform his duties
hereunder and to comply with any reasonable or proper direction given by or on
behalf of the Company&#8217;s Board of Directors and the continuation of such failure
following twenty (20) days written notice to such effect, (ii) the Executive
being guilty of serious misconduct on the Company&#8217;s premises or elsewhere,
whether during the performance of his duties or not, which is reasonably likely
to cause material damage to the reputation of the Company or render it
materially more difficult for the Executive to satisfactorily continue to
perform his duties and the continuation or a second instance of such serious
misconduct following twenty (20) days written notice to such effect; (iii) the
Executive being found guilty in a criminal court of any offense of a nature
which is reasonably likely to materially adversely affect the reputation of the
Company or to materially prejudice its interests if the Executive were to
continue to be employed by the Company; (iv) the Executive&#8217;s commission of any
act of fraud or theft involving the Company or its business, or any intentional
tort against the Company; or (v) the Executive&#8217;s violation of any of the
material terms, covenants, representations or warranties contained in this
Agreement and failure to correct such violation within twenty (20) days after
written notice by the Company. Notwithstanding the foregoing, &#8220;Cause&#8221; shall only
be deemed to exist if it is so determined by a resolution duly adopted by the
Board of Directors of the Company, at a duly noticed meeting at which the
Executive and his counsel are first given the opportunity to address the Board
with respect to such determination.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">3 </font></div>
    <div>&#160;</div>
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    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(c)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">&#8220;Disability&#8221; shall mean that the Executive, in the good faith
determination of the Board of Directors of the Company, based on the advice of a
qualified physician after a proper examination of the Executive, is unable,
without reasonable accommodation, to render services of the character
contemplated hereby and that such inability (i) may be expected to be permanent,
or (ii) may be expected to continue for a period of at least six (6) consecutive
months (or for shorter periods totaling more than six (6) months during any
period of twelve (12) consecutive months). Termination resulting from Disability
may only be effected after at least thirty (30) days written notice by the
Company of its intention to terminate the Executive&#8217;s employment. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(d)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">&#8220;Termination Date&#8221; shall mean any of the following and which termination
is a &#8220;separation of service&#8221; within the meaning of Section 409A of the Code: (i)
if this Agreement is terminated on account of death, the date of death; (ii) if
this Agreement is terminated for Disability, the date established by the Company
pursuant to Section 8(c) hereof; (iii) if this Agreement is terminated by the
Company, the date on which a notice of termination is given to the Executive;
(iv) if the Agreement is terminated by the Executive, the date the Executive
ceases work; or (v) if this Agreement expires by its terms, the last day of the
term of this Agreement. Notwithstanding the foregoing, if within thirty (30)
days after any notice of termination is given, the party receiving such notice
notifies the other party that a dispute exists concerning the termination, the
Termination Date shall be the date finally determined to be the Termination
Date, either by mutual written agreement of the parties or by binding
arbitration in the manner provided in Section 23 hereof; provided that the
Termination Date shall be extended by a notice of dispute only if such notice is
given in good faith and the party giving such notice pursues the resolution of
such dispute with reasonable diligence. Notwithstanding the pendency of any such
dispute, the Company will continue to pay the Executive his full compensation in
effect when the notice giving rise to the dispute was given and continue the
Executive as a participant in all compensation, benefit and insurance plans in
which he was participating when the notice giving rise to the dispute was given,
until the dispute is finally resolved. Amounts paid under this Section 8(d)
shall be in addition to all other amounts due under this Agreement and shall not
be offset against or reduce any amounts due under this Agreement; provided,
however, that if the arbitrator determines that any notice of dispute by the
Executive was not given in good faith or that the Executive did not pursue the
resolution of such dispute with reasonable diligence, the Executive shall repay
the Company the amount of compensation paid to the Executive pursuant to Section
8(d) from the Termination Date which would have applied had such notice of
dispute not been given, plus interest thereon at the applicable federal rate
provided for in Section 1274(d) of the Code, or any successor provision thereof,
for an obligation with a term equal to the period from the date of payment to
the date of repayment pursuant to this Section 8(d). </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">4 </font></div>
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    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>9.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Severance:</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">If (i) the Company terminates the employment of the Executive against his
will and without Cause (including by giving notice of termination of the
Agreement pursuant to Section 7), or (ii) the Executive terminates his
employment for Good Reason, the Executive shall be entitled to receive salary,
Incentive Compensation and vacation accrued through the Termination Date, plus
the following:</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(i)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">a cash lump sum in an amount equal to the greater of the Executive&#8217;s base
salary for the remainder of the Initial Term or two years of Executive&#8217;s base
salary in effect on the Termination Date; </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(ii)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">a cash lump sum equal to the maximum amount of the Incentive Compensation
which Executive could earn for the fiscal year in which the Termination Date
occurs (the &#8220;Maximum Incentive Compensation&#8221;); and </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(iii)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">full vesting of all outstanding stock options and restricted stock held
by Executive. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company shall
make the termination payment required hereunder within thirty (30) days of the
Termination Date; provided, however, if such thirty (30) day period begins in
one calendar year and ends in another calendar year, the Executive will not have
the right to designate the calendar year of payment.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">In addition, the
Company and the Executive agree that, upon such termination and for a period of
two (2) years following the Termination Date, (i)Executive will make himself
available for an average of 20 hours per week in order to consult with the
Company in such manner and on such matters as the Company shall reasonably
request, (ii) Executive will make himself available to serve on the Board of
Directors of the Company, and (iii) in consideration for the Executives
agreement to perform such services, the Company will (A) pay the Executive an
annual amount equal to 40% of his base salary in effect on the Termination Date,
payable in regular installments in accordance with the Company&#8217;s standard
payroll practices, and (B) include the Executive in the Company&#8217;s Family
medical, dental and vision insurance plans, or, if the Executive&#8217;s inclusion in
such plans is not permitted, provide substantially the same benefits to the
Executive at the Company&#8217;s expense.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Notwithstanding the
foregoing, the Company shall not be required to pay any severance pay or
consulting payments for any period following the Termination Date if the
Executive violates the provisions of Section 15, Section 16 or Section 17 of
this Agreement in any material respect, and fails to cure such violation within
thirty (30) days after written notice from the Company to the Executive
detailing such violation.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(b)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">If (i) the Executive voluntarily terminates his employment other than for
Good Reason, (ii) the Executive&#8217;s employment is terminated due to death or
Disability, or (iii) the Executive is terminated by the Company for Cause, then
the Executive shall be entitled to receive his base salary and accrued vacation
through the Termination Date only. In the event of death or Disability the
Executive shall also be entitled to receive the Pro-Rated Incentive Compensation
and full vesting of all outstanding stock options and restricted stock held by
the Executive, subject to the same terms and conditions as provided in Section
9(a).</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">5 </font></div>
    <div>&#160;</div>
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    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(c)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">In addition to the provisions of Section 9(a) and 9(b) hereof, to the
extent COBRA shall be applicable to the Company or as provided by law, the
Executive shall be entitled to continuation of group health plan benefits in
accordance with COBRA if the Executive makes the appropriate conversion and
payments. If requested to do so, the Company will transfer ownership of the life
insurance policy referred to in Section 5 to the Executive and the Executive
agrees to pay for any costs related to the transfer in excess of $1000 and to be
responsible for all future premiums. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(d)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">The Executive acknowledges that, upon termination of his employment, he
is entitled to no other compensation, severance or other benefits other than
those specifically set forth in this Agreement or any applicable Stock Option
Agreement, or pursuant to any Applicable Benefit Plan. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(e)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">All payments to be made to the Executive upon a termination of employment
may only be made upon a &#8220;separation from service&#8221; (within the meaning of Section
409A) of the Executive. For purposes of Section 409A, (i) each payment made
under this Agreement shall be treated as a separate payment; (ii) the Executive
may not, directly or indirectly, designate the calendar year of payment; and
(iii) no acceleration of the time and form of payment of any nonqualified
deferred compensation to the Executive or any portion thereof, shall be
permitted. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(f)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">Notwithstanding anything contained in this Agreement to the contrary, if
at the time of the Executive&#8217;s &#8220;separation from service&#8221; (as defined in Section
409A of the Code) the Executive is a &#8220;specified employee&#8221; (within the meaning of
Section 409A and the Company&#8217;s specified employee identification policy) and if
any payment, reimbursement and/or in-kind benefit that constitutes nonqualified
deferred compensation (within the meaning of Section 409A) is deemed to be
triggered by the Executive&#8217;s separation from service, then, to the extent one or
more exceptions to Section 409A are inapplicable (including, without limitation,
the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) relating to
separation pay due to an involuntary separation from service and its requirement
that installments must be paid no later than the last day of the second taxable
year following the taxable year in which such an employee incurs the involuntary
separation from service), all payments, reimbursements, and in-kind benefits
that constitute nonqualified deferred compensation (within the meaning of
Section 409A) to the Executive shall not be paid or provided to the Executive
during the six-month period following the Executive&#8217;s separation from service,
and (i) such postponed payment and/or reimbursement/in-kind amounts shall be
paid to the Executive in a lump sum within thirty (30) days after the date that
is six (6) months following the Executive&#8217;s separation from service; (ii) any
amounts payable to the Executive after the expiration of such six- (6-) month
period shall continue to be paid to the Executive in accordance with the terms
of this Agreement; and (iii) to the extent that any group hospitalization plan,
health care plan, dental care plan, life or other insurance or death benefit
plan, and any other present or future similar group executive benefit plan or
program or any lump sum cash out thereof is nonqualified deferred compensation
(within the meaning of Section 409A), the Executive shall pay for such benefits
from his Termination Date until the first day of the seventh month following the
month of the Executive&#8217;s separation from service, at which time the Company
shall reimburse the Executive for such payments. If the Executive dies during
such six- (6-) month period and prior to the payment of such postponed amounts
of nonqualified deferred compensation, only the amount of nonqualified deferred
compensation equal to the number of whole months that the Executive lived shall
be paid in a lump sum to the Executive&#8217;s estate or, if applicable, to the
Executive&#8217;s designated beneficiary within thirty (30) days after the date of the
Executive&#8217;s death.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">6 </font></div>
    <div>&#160;</div>
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    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">10.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Expenses; Reimbursements and In-Kind
Benefits</font></font><font size="2" style="FONT-FAMILY: serif">. The Company
shall pay or reimburse the Executive for all expenses normally reimbursed by
Company, reasonably incurred by him in furtherance of his duties hereunder and
authorized and approved by the Company in compliance with such rules relating
thereto as the Company may, from time to time, adopt and as may be required in
order to permit such payments as proper deductions to Company under the Code,
and the rules and regulations adopted pursuant thereto now or hereafter in
effect. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Notwithstanding any
other provision of the applicable plans and programs, all reimbursements and
in-kind benefits provided under this Agreement shall be made or provided in
accordance with the requirements of Section 409A, including, where applicable,
the requirement that (i) the amount of expenses eligible for reimbursement and
the provision of benefits in kind during a calendar year shall not affect the
expenses eligible for reimbursement or the provision of in-kind benefits in any
other calendar year; (ii) the reimbursement for an eligible expense will be made
on or before the last day of the calendar year following the calendar year in
which the expense is incurred; (iii) the right to reimbursement or right to
in-kind benefit is not subject to liquidation or exchange for another benefit;
and (iv) each reimbursement payment or provision of in-kind benefit shall be one
of a series of separate payments (and each shall be construed as a separate
identified payment) for purposes of Section 409A of the Code.</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">11.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Facilities and Services</font></font><font size="2" style="FONT-FAMILY: serif">. The Company shall furnish the Executive with
office space, secretarial and support staff and such other facilities and
services as shall be reasonably necessary for the performance of his duties
under this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">12.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Mitigation Not Required</font></font><font size="2" style="FONT-FAMILY: serif">. In the event this Agreement is terminated,
the Executive shall not be required to mitigate amounts payable pursuant hereto
by seeking other employment or otherwise. The Executive&#8217;s acceptance of any such
other employment shall not diminish or impair the amounts payable to the
Executive pursuant hereto. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">13.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Place of Performance</font></font><font size="2" style="FONT-FAMILY: serif">. The Executive shall perform his duties
primarily in Tempe, Arizona or locations within a reasonable proximity thereof,
except for reasonable travel as the performance of the Executive&#8217;s duties may
require. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">14.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Insurance and Indemnity</font></font><font size="2" style="FONT-FAMILY: serif">. During the Employment Period, if available
at reasonable costs, the Company shall maintain, at its expense, officers and
directors fiduciary liability insurance covering the Executive and all other
executive officers and directors in an amount of no less than $5,000,000. The
Company shall also indemnify the Executive, to the fullest extent permitted by
law, from any liability asserted against or incurred by the Executive by reason
of the fact that the Executive is or was an officer or director of the Company
or any affiliate or related party or is or was serving in any capacity at the
request of the Company for any other corporation, partnership, joint venture,
trust, employment benefit plan or other enterprise. This indemnity shall survive
termination of this Agreement. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">7 </font></div>
    <div>&#160;</div>
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    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>15.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Noncompetition</font></font><font size="2" style="FONT-FAMILY: serif">. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">The Executive agrees that, except in accordance with his duties under
this Agreement on behalf of the Company, he will not during the term of this
Agreement: </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">Participate in, be employed in any capacity
by, serve as director, consultant, agent or representative for, or have any
interest, directly or indirectly, in any enterprise which is engaged in the
business of distributing, selling or otherwise trading in products or services
which are competitive to any products or services distributed, sold or otherwise
traded in by the Company or any of its subsidiaries during the term of the
Executive&#8217;s employment with the Company, or which are competitive to any
products or services being actively developed, with the bona fide intent to
market same, by the Company or any of its subsidiaries during the term of the
Executive&#8217;s employment with the Company; </font></div>
    <div>&#160;</div>
    <div style="PADDING-LEFT: 15pt" align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In addition, the Executive agrees that for a
period of two years after the end of the term of this Agreement (unless the
Company breaches this Agreement by failing to pay to the Executive all sums due
him under the terms hereof, in which event the following provisions of this
Section 15.A shall be inapplicable), the Executive shall observe the covenants
set forth in this Section 15 and shall not own, either directly or indirectly or
through or in conjunction with one or more members of his or his spouse&#8217;s family
or through any trust or other contractual arrangement, a greater than five
percent (5%) interest in, or otherwise control either directly or indirectly,
any partnership, corporation, or other entity which distributes, sells, or
otherwise trades in products which are competitive to any products or services
being developed, distributed, sold, or otherwise traded in by the Company or any
of its subsidiaries, during the term of this Agreement, or being actively
developed by the Company or any of its subsidiaries during the term of this
Agreement with the Company with a bona fide intent to market same. Executive
further agrees, for such two-year period following termination, to refrain from
directly or indirectly soliciting Company&#8217;s vendors, customers or employees,
except that the Executive may solicit the Company&#8217;s vendors or customers in
connection with a business that does not compete with the Company or any of its
subsidiaries. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(b)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">The Executive hereby agrees that damages and any other remedy available
at law would be inadequate to redress or remedy any loss or damage suffered by
the Company upon any breach of the terms of this Section 15 by the Executive,
and the Executive therefore agrees that the Company, in addition to recovering
on any claim for damages or obtaining any other remedy available at law, also
may enforce the terms of this section 15 by injunction or specific performance,
and may obtain any other appropriate remedy available in equity. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">8 </font></div>
    <div>&#160;</div>
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    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif"><font size="2" style="FONT-FAMILY: serif">16.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Assignment of Patents</font></font><font size="2" style="FONT-FAMILY: serif">. Executive shall disclose fully to the
Company any and all discoveries and any and all ideas, concepts or inventions
relating to the Company&#8217;s business as described in the Company&#8217;s most recent
Annual Report on Form 10-K filed with the Securities and Exchange Commission)
which he shall conceive or make during his period of employment, or during the
period of six months after his employment shall terminate, which are in whole or
in part the result of his work with the Company. Such disclosure is to be made
promptly after each such discovery or conception, and each such discovery, idea,
concept or invention will become </font>and remain the property of the Company,
whether or not patent applications are filed thereon. Upon request and at the
expense of the Company, the Executive shall make application through the patent
solicitors of the Company for letters patent of the United States and any and
all other countries at the discretion of the Company on such discoveries, ideas
and inventions, and to assign all such applications to the Company, or at its
order, forthwith, without additional payment by the Company during his period of
employment and for reasonable compensation for time actually spent by the
Executive at such work at the request of the Company after the termination of
the employment. Executive shall give the Company, its attorneys and solicitors,
all reasonable assistance in preparing and prosecuting such applications and, on
request of the Company, execute all papers and do all things that may be
reasonably necessary to protect the right of the Company and vest in it or its
assigns the discoveries, ideas or inventions, applications and letters patent
herein contemplated. Said cooperation shall also include all actions reasonably
necessary to aid the Company in the defense of its rights in the event of
litigation. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>17.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Trade Secrets</font></font><font size="2" style="FONT-FAMILY: serif">. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">In the course of the term of this Agreement, it is anticipated that the
Executive shall have access to secret or confidential technical and commercial
information, records, data, specifications, systems, methods, plans, policies,
inventions, material and other knowledge (&#8220;Confidential Material&#8221;) owned by the
Company and its subsidiaries. The Executive recognizes and acknowledges that
included within the Confidential Material are the Company&#8217;s confidential
commercial information, technology, methods of manufacture, designs, and any
computer programs, source codes, object codes, executable codes and related
materials, all as they may exist from time to time, and that they are valuable
special and unique aspects of the Company&#8217;s business. All such Confidential
material shall be and remain the property of the Company. Except as required by
his duties to the Company, the Executive shall not, directly or indirectly,
either during the term of his employment or at any time thereafter, disclose or
disseminate to anyone or make use of, for any purpose whatsoever, any
Confidential Material. Upon termination of his employment, the Executive shall
promptly deliver to the Company all Confidential Material (including all copies
thereof, whether prepared by the Executive or others) which are in the
possession or under the control of the Executive. The Executive shall not be
deemed to have breached this Section 17 if the Executive shall be specifically
compelled by lawful order of any judicial, legislative, or administrative
authority or body to disclose any Confidential Material or else face civil or
criminal penalty or sanction. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(b)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">The Executive hereby agrees that damages and any other remedy available
at law would be inadequate to redress or remedy any loss or damage suffered by
the Company upon any breach of the terms of this Section 17 by the Executive,
and the Executive therefore agrees that the Company, in addition to recovering
on any claim for damages or obtaining any other remedy available at law, also
may enforce the terms of this Section 17 by injunction or specific performance,
and may obtain any other appropriate remedy available in equity. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">9 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    <div align="justify">
      <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>18.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Provisions After Change of
Control</font></font><font size="2" style="FONT-FAMILY: serif">. </font></div>
      <div>&#160;</div>
      <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(a)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">In the event Executive&#8217;s employment with the Company is terminated (other
than as a consequence of death or Disability) either (x) by the Company for any
reason other than for Cause during a Pending Change of Control (as hereinafter
defined) or within one year following the occurrence of a Change of Control, or
(y) by Executive for Good Reason within one year following the occurrence of a
Change of Control, then Executive shall be entitled to receive from the Company,
in lieu of the severance payment otherwise payable pursuant to Section 9(a), the
following:</font></div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(i)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">a cash lump sum equal to three years of Executive&#8217;s base salary in effect
on the Termination Date; </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>(ii)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">the Maximum Incentive Compensation; and</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(iii)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">full vesting of all outstanding stock options and restricted stock held
by Executive. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company shall
make the termination payments required hereunder within thirty (30) days of the
Termination Date; provided, however, if such thirty (30) day period begins in
one calendar year and ends in another calendar year, Executive will not have the
right to designate the calendar year of payment. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>(b)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">For purposes of this Agreement, the term &#8220;Change of Control&#8221; shall mean:
</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(i)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">The acquisition, other than from the Company, by any individual, entity
or group (within the meaning of Rule 13d-3 promulgated under the Exchange Act or
any successor provision) (any of the foregoing described in this Section 18
(b)(i) hereafter a &#8220;Person&#8221;) of 20% or more of either (a) the then outstanding
shares of Capital Stock of the Company (the &#8220;Outstanding Capital Stock&#8221;) or (b)
the combined voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors (the &#8220;Voting
Securities&#8221;), provided, however, that any acquisition by (x) the Company or any
of its subsidiaries, or any employee benefit plan (or related trust) sponsored
or maintained by the Company or any of its subsidiaries or (y) any Person that
is eligible, pursuant to Rule 13d-1 (b) under the Exchange Act, to file a
statement on Schedule 13G with respect to its beneficial ownership of Voting
Securities, whether or not such Person shall have filed a statement on Schedule
13G, unless such Person shall have filed a statement on Schedule 13D with
respect to beneficial ownership of 35% or more of the Voting Securities or (z)
any corporation with respect to which, following such acquisition, more than 60%
respectively, the then outstanding shares of common stock of such corporation
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Capital Stock and Voting Securities immediately prior to such
acquisition in substantially the same proportion as their ownership, immediately
prior to such acquisition, of the Outstanding Capital Stock and Voting
Securities, as the case may be, shall not constitute a Change of Control; or
</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(ii)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">Individuals who, as of the Effective Date, constitute the Board (the
&#8220;Incumbent Board&#8221;) cease for any reason to constitute at least a majority of the
Board, provided that any individual becoming a director subsequent to the date
hereof whose election or nomination for election by the Company&#8217;s shareholders,
was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be considered as though such individual were a member
of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office is in connection with an actual or threatened
election contest relating to the election of the Directors of the Company (as
such terms are used in Rule 14a-11 of Regulation 14A, or any successor section,
promulgated under the Exchange Act); or</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">10 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(iii)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">Approval by the shareholders of the Company of a reorganization, merger
or consolidation (a &#8220;Business Combination&#8221;), in each case, with respect to which
all or substantially all holders of the Outstanding Capital Stock and Voting
Securities immediately prior to such Business Combination do not, following such
Business Combination, beneficially own, directly or indirectly, more than 60%
of, respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from the Business Combination; or </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(iv)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">(a) a complete liquidation or dissolution of the Company or (b) a sale or
other disposition of all or substantially all of the assets of the Company other
than to a corporation with respect to which, following such sale or disposition,
more than 60% of respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors is then owned beneficially, directly
or indirectly, by all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Capital Stock and
Voting Securities immediately prior to such sale or disposition in substantially
the same proportion as their ownership of the Outstanding Capital Stock and
Voting Securities, as the case may be, immediately prior to such sale or
disposition. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(v)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">The first purchase under a tender offer or exchange offer for 20% or more
of the outstanding shares of stock (or securities convertible into stock) of the
Company, other than an offer by the Company or any of its subsidiaries or any
employee benefit plan sponsored by the Company or any of its subsidiaries.
</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(c)</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">For purposes of this Agreement, the term &#8220;Pending Change of Control&#8221;
shall mean the occurrence of one of the following events as the result of which
a Change in Control pursuant thereto is reasonably expected within ninety (90)
days after the date of determination as to whether there is a Pending Change in
Control: (i) the Company executes a letter of intent, term sheet or similar
instrument with respect to a transaction or series of transactions, the
consummation of which would result in a Change of Control; (ii) the Board
approves a transaction or series of transactions, the consummation of which
would result in a Change of Control; (iii) a Person makes a public announcement
of a tender offer for the Common Stock of the Company, the consummation of which
would result in a Change of Control; or (iv) a Person makes a public
announcement of, or makes a public filing with respect to, the intention of that
Person to seek to change the membership of the Board of Directors of the Company
in a manner that would result in a Change of Control. A Pending Change of
Control shall cease to exist upon a Change of Control. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">19.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Notices</font></font><font size="2" style="FONT-FAMILY: serif">. Any notice required or permitted to be given
under this Agreement shall be sufficient if in writing and if sent by registered
or certified mail, return receipt requested to his residence in the case of the
Executive, or to its principal office in the case of the Company, or to such
other addresses as they may respectively designate in writing.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">11 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">20.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Entire Agreement; Waiver</font></font><font size="2" style="FONT-FAMILY: serif">. This Agreement contains the entire
understanding of the parties and may not be changed orally but only by an
agreement in writing, signed by the party against whom enforcement of any
waiver, change, modification or discharge is sought. Waiver of or failure to
exercise any rights provided by this Agreement in any respect shall not be
deemed a waiver of any further or future rights. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">21.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Binding Effect; Assignment</font></font><font size="2" style="FONT-FAMILY: serif">. The rights and obligations of this Agreement
shall bind and inure to the benefit of any successor of the Company by
reorganization, merger or consolidation, or any assignee of all or substantially
all of the Company&#8217;s business or properties. The Executive&#8217;s rights hereunder
are personal to and shall not be transferable nor assignable by the Executive.
</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">22.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Headings</font></font><font size="2" style="FONT-FAMILY: serif">. The headings contained in this Agreement are
for reference purposes only and shall not affect the meaning or interpretation
of this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">23.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Governing Law; Arbitration</font></font><font size="2" style="FONT-FAMILY: serif">. This Agreement shall be construed in
accordance with and governed for all purposes by the laws and public policy of
the State of Arizona applicable to contracts executed and to be wholly performed
within such state. Any dispute or controversy arising out of or relating to this
Agreement shall be settled by arbitration in accordance with the rules of the
American Arbitration Association and judgment upon the award may be entered in
any court having jurisdiction thereover. The arbitration shall be held in
Maricopa County or in such other place as the parties hereto may agree.
</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">24.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Further Assurances</font></font><font size="2" style="FONT-FAMILY: serif">. Each of the parties agrees to execute,
acknowledge, deliver and perform, and cause to be executed, acknowledged,
delivered and performed, at any time and from time to time, all such further
acts, deeds, assignments, transfers, conveyances, powers of attorney and/or
assurances as may be necessary or proper to carry out the provisions or intent
of this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">25.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Severability</font></font><font size="2" style="FONT-FAMILY: serif">. The parties agree that if any one or more of
the terms, provisions, covenants or restrictions of this Agreement shall be
determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">26.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Counterparts</font></font><font size="2" style="FONT-FAMILY: serif">. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same Agreement. </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">12 </font></div>
    <div>&#160;</div>
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    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">IN WITNESS WHEREOF, AMTECH SYSTEMS, INC. has
caused by instrument to be signed by a duly authorized officer and the Executive
has hereunto set his hand the day and year first above written. </font></div>
    <div>&#160;</div>
    <div>
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<tr valign="bottom">
            <td align="left" colspan="2" nowrap width="50%"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC.</font></td>
            <td align="left" nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td align="left" nowrap width="49%">
            </td>
          </tr><tr>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="49%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="49%">
            </td>
          </tr><tr>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="49%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="49%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="1%"><font size="2">By&#160; </font></td>
            <td align="left" nowrap width="49%" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="left" nowrap width="1%">&#160;</td>
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            </td>
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            <td align="left" nowrap width="49%"><font size="2" style="FONT-FAMILY: serif">Bradley C. Anderson</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Jong S. Whang, Executive</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="49%"><font size="2" style="FONT-FAMILY: serif">Vice President and Chief Financial Officer</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="49%">
            </td>
          </tr></table>
    </div><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">13 </font></div>
    <div>&#160;</div>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>exhibit10-4.htm
<DESCRIPTION>AMENDED AND RESTATED CHANGE OF CONTROL AND SEVERANCE AGREEMENT
<TEXT>
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    <title>exhibit10-4.htm</title>
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    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">AMENDED AND RESTATED<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">CHANGE OF CONTROL AND SEVERANCE AGREEMENT </font></font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160; <font size="2" style="FONT-FAMILY: serif">THIS CHANGE OF CONTROL SEVERANCE AGREEMENT (this &#8220;Agreement&#8221;), is entered
into as of this ____ day of March, 2010, between Amtech Systems, Inc., an
Arizona corporation (the &#8220;Company&#8221;), with offices at 131 South Clark Drive,
Tempe, Arizona, and Robert T. Hass (the &#8220;Executive&#8221;). </font></div>
    <div>&#160;</div>
    <div align="center"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">W I T N E S S E T H</font></font><font style="FONT-FAMILY: serif">: </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>WHEREAS, the Company and the
Executive have entered into that certain Key Man Severance Agreement, dated
October 1, 1999 and that certain Agreement, dated May 19, 1992; </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">WHEREAS, the Company and the Executive entered
into that certain Amended and Restated Change of Control and Severance
Agreement, dated December 29, 2008 in order to amend the Employment Agreement to
comply with the requirements of Section 409A of the Internal Revenue Code of
1986, as amended, and the final regulations issued thereunder (&#8220;Section
409A&#8221;);</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">WHEREAS, the Company and the Executive desire
to further amend the Amended and Restated Change of Control and Severance
Agreement; and </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">WHEREAS, the Board of Directors of the Company
(the &#8220;Board&#8221;) has approved such amendment. </font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">NOW THEREFORE, in consideration of the mutual
agreements, provisions and covenants contained herein, and intending to be
legally bound hereby, the Company and the Executive do hereby agree as follows:
</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Definitions</font></font><font style="FONT-FAMILY: serif">.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Additional Terms&#8221;
shall have the meaning set forth in Section 5 of this Agreement.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Board&#8221; shall mean
the Board of Directors of the Company. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Business
Combination&#8221; shall have the meaning set forth in Section 2(b)(iii) of this
Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Cause&#8221; shall mean
(i) the Executive&#8217;s willful, repeated or negligent failure to perform his duties
to the Company and to comply with any reasonable or proper direction given by or
on behalf of the Company&#8217;s Board of Directors and the continuation of such
failure following twenty (20) days written notice to such effect, (ii) the
Executive being guilty of serious misconduct on the Company&#8217;s premises or
elsewhere, whether during the performance of his duties or not, which is
reasonably likely to cause material damage to the reputation of the Company or
render it materially more difficult for the Executive to satisfactorily continue
to perform his duties and the continuation or a second instance of such serious
misconduct following twenty (20) days written notice to such effect; (iii) the
Executive being found guilty in a criminal court of any offense of a nature
which is reasonably likely to materially adversely affect the reputation of the
Company or to materially prejudice its interests if the Executive were to
continue to be employed by the Company; (iv) the Executive&#8217;s commission of any
act of fraud or theft involving the Company or its business, or any intentional
tort against the Company; or (v) the Executive&#8217;s violation of any of the
material terms, covenants, representations or warranties contained in this
Agreement and failure to correct such violation within twenty (20) days after
written notice by the Company. Notwithstanding the foregoing, &#8220;Cause&#8221; shall only
be deemed to exist if it is so determined by a resolution duly adopted by the
Board of Directors of the Company, at a duly noticed meeting at which the
Executive and his counsel are first given the opportunity to address the Board
with respect to such determination. </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Change of Control&#8221;
shall have the meaning set forth in Section 2(b) of this Agreement.
</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Company&#8221; shall have
the meaning set forth in the preamble to this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Disability&#8221; shall
mean that the Executive, in the good faith determination of the Board of
Directors of the Company, based on the advice of a qualified physician after a
proper examination of the Executive, is unable to render services of the
character necessary to perform his duties to the Company and that such inability
(i) may be expected to be permanent, or (ii) may be expected to continue for a
period of at least six (6) consecutive months (or for shorter periods totaling
more than six (6) months during any period of twelve (12) consecutive months).
Termination resulting from Disability may only be effected after at least thirty
(30) days written notice by the Company of its intention to terminate the
Executive&#8217;s employment. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Effective Date&#8221;
shall mean the date of this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Exchange Act&#8221; shall
mean the Securities Exchange Act of 1934, as amended.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Executive&#8221; shall
have the meaning set forth in the preamble to this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Good Reason&#8221; shall
mean (i) the Company&#8217;s failure to elect or reelect, or to appoint or reappoint,
the Executive to the offices of Chief Accounting Officer of the Company; (ii)
material changes by the Company in the Executive&#8217;s function, duties or
responsibilities (including reporting responsibilities) of a scope less than
that associated with the positions of Chief Accounting Officer of the Company;
(iii) Executive&#8217;s base salary is reduced by the Company below the highest base
salary of Executive in effect during the term of his Employment; (iv) relocation
of Executive&#8217;s principal place of employment to a place that is not within a
radius of twenty-five (25) miles of his primary residence; (v) failure by the
Company to obtain the assumption of this Agreement by any successor or assign of
the Company; or (vi) material breach of this Agreement by the Company, which
breach is not cured within five (5) days after written notice thereof is
delivered to the Company. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Incentive
Compensation&#8221; shall mean any annual cash bonuses, as determined in accordance
with any annual bonus plan adopted by the Company&#8217;s Compensation Committee, to
which the Executive is entitled for each fiscal year during his term of
employment. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Incumbent Board&#8221;
shall have the meaning set forth in Section 2(b)(ii) of this Agreement.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">2 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br><a name="page_3"><!--EFPlaceholder-->
</a>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Initial Term&#8221; shall
have the meaning set forth in Section 5 of this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Outstanding Capital
Stock&#8221; shall have the meaning set forth in Section 2(b)(i) of this Agreement.
</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Pending Change of
Control&#8221; shall have the meaning set forth in Section 2(c) of this Agreement.
</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Person&#8221; shall have
the meaning set forth in Section 2(b)(i) of this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Term&#8221; shall have the
meaning set forth in Section 5 of this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Termination Date&#8221;
means the date the Executive ceases work, which cessation of work is a
&#8220;separation from service&#8221; within the meaning of Section 409A. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#8220;Voting Securities&#8221;
shall have the meaning set forth in Section 2(b)(i) of this Agreement.
</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Severance Provisions After Change of
Control</font></font><font size="2" style="FONT-FAMILY: serif">. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">In the event that
Executive&#8217;s employment with the Company is terminated (other than as a
consequence of death or Disability) either (x) by the Company for any reason
other than for Cause during a Pending Change of Control or within one year
following the occurrence of a Change of Control, or (y) by Executive for Good
Reason within one year following the occurrence of a Change of Control, then
Executive shall be entitled to receive from the Company the following:
</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="TEXT-ALIGN: justify; ">
<tr>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">i)</font></td>
            <td nowrap valign="top">&#160;&#160; </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">a cash
      lump sum equal to an amount equal to one (1) year of Executive&#8217;s base
      salary in effect on the Termination Date;</font></td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td colspan="3" valign="top" width="100%">&#160; </td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">ii)</font></td>
            <td nowrap valign="top">
            </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">a cash
      lump sum equal to the amount of accrued but unpaid Incentive Compensation
      earned by the Executive, which amount shall be prorated for the year in
      which the termination occurs and shall be calculated through the end of
      the last full month prior to the Termination Date with a proportionate
      adjustment to all caps and floors, if any, based upon the portion of the
      fiscal year worked prior to the termination of Executive&#8217;s employment;
      and</font></td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td colspan="3" valign="top" width="100%">&#160; </td>
          </tr><tr>
            <td nowrap valign="top">
            </td>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">iii)</font></td>
            <td nowrap valign="top">
            </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">full
      vesting of all outstanding stock options and restricted stock grants held
      by Executive.</font></td>
          </tr></table>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company shall
make termination payments required by Section 2(a)(i) within ten (10) days of
the Termination Date, and payments required by Section 2(a)(ii) within thirty
(30) days of the Termination Date; provided, however, if such ten (10) day or
thirty (30) day period begins in one calendar year and ends in another,
Executive will not have the right to specify the calendar year of payment. All
payments to be made to the Executive upon a termination of employment may only
be made upon a &#8220;separation from service&#8221; (within the meaning of Section 409A) of
the Executive. For purposes of Section 409A, (i) each payment made under this
Agreement shall be treated as a separate payment; (ii) the Executive may not,
directly or indirectly, designate the calendar year of payment; and (iii) no
acceleration of the time and form of payment of any nonqualified deferred
compensation to the Executive or any portion thereof, shall be permitted.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">3 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">For purposes of this
Agreement, the term &#8220;Change of Control&#8221; shall mean: </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The acquisition,
other than from the Company, by any individual, entity or group (within the
meaning of Rule 13d-3 promulgated under the Exchange Act or any successor
provision) (any of the foregoing described in this Section 2(b)(i) hereafter a
&#8220;Person&#8221;) of 20% or more of either (a) the then outstanding shares of Capital
Stock of the Company (the &#8220;Outstanding Capital Stock&#8221;) or (b) the combined
voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (the &#8220;Voting Securities&#8221;);
provided, however, that any acquisition by (x) the Company or any of its
subsidiaries, or any employee benefit plan (or related trust) sponsored or
maintained by the Company or any of its subsidiaries or (y) any Person that is
eligible, pursuant to Rule 13d-1 (b) under the Exchange Act, to file a statement
on Schedule 13G with respect to its beneficial ownership of Voting Securities,
whether or not such Person shall have filed a statement on Schedule 13G, unless
such Person shall have filed a statement on Schedule 13D with respect to
beneficial ownership of 35% or more of the Voting Securities or (z) any
corporation with respect to which, following such acquisition, more than 60%
respectively, of the then outstanding shares of common stock of such corporation
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Capital Stock and Voting Securities immediately prior to such
acquisition in substantially the same proportion as their ownership, immediately
prior to such acquisition, of the Outstanding Capital Stock and Voting
Securities, as the case may be, shall not constitute a Change of Control; or
</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Individuals who, as
of the Effective Date, constitute the Board (the &#8220;Incumbent Board&#8221;) cease for
any reason to constitute at least a majority of the Board, provided that any
individual becoming a director subsequent to the date hereof whose election or
nomination for election by the Company&#8217;s shareholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of
office is in connection with an actual or threatened election contest relating
to the election of the Directors of the Company (as such terms are used in Rule
14a-11 of Regulation 14A, or any successor section, promulgated under the
Exchange Act); or </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Approval by the
shareholders of the Company of a reorganization, merger or consolidation (a
&#8220;Business Combination&#8221;), in each case, with respect to which all or
substantially all holders of the Outstanding Capital Stock and Voting Securities
immediately prior to such Business Combination do not, following such Business
Combination, beneficially own, directly or indirectly, more than 60% of,
respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from the Business Combination; or </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">4 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">(a) a complete
liquidation or dissolution of the Company or (b) a sale or other disposition of
all or substantially all of the assets of the Company other than to a
corporation with respect to which, following such sale or disposition, more than
60% of respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors is then owned beneficially, directly or
indirectly, by all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Capital Stock and Voting
Securities immediately prior to such sale or disposition in substantially the
same proportion as their ownership of the Outstanding Capital Stock and Voting
Securities, as the case may be, immediately prior to such sale or disposition;
or </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The first purchase
under a tender offer or exchange offer for 20% or more of the outstanding shares
of stock (or securities convertible into stock) of the Company, other than an
offer by the Company or any of its subsidiaries or any employee benefit plan
sponsored by the Company or any of its subsidiaries. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">For purposes of this
Agreement, the term &#8220;Pending Change of Control&#8221; shall mean the occurrence of one
of the following events as the result of which a Change of Control pursuant
thereto is reasonably expected to occur within ninety (90) days after the date
of determination as to whether there is a Pending Change of Control: (i) the
Company executes a letter of intent, term sheet or similar instrument with
respect to a transaction or series of transactions, the consummation of which
would result in a Change of Control; (ii) the Board approves a transaction or
series of transactions, the consummation of which would result in a Change of
Control; (iii) a Person makes a public announcement of a tender offer for the
Common Stock of the Company, the consummation of which would result in a Change
of Control; or (iv) a Person makes a public announcement of, or makes a public
filing with respect to, the intention of that Person to seek to change the
membership of the Board of Directors of the Company in a manner that would
result in a Change of Control. A Pending Change of Control shall cease to exist
upon a Change of Control.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Should the Executive
be terminated for any other reason than that described in Section 2(a), the
Executive shall be entitled to severance pay, the amount of which shall be
determined by the Compensation Committee of the Board of Directors taking into
consideration the Executive&#8217;s contributions to the Company&#8217;s success and growth
and the Executive&#8217;s length of service; provided, however, that if the Executive
is terminated for cause there shall be no severance payment. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Specified Employee</font></font><font size="2" style="FONT-FAMILY: serif">. Notwithstanding anything in this Agreement
to the contrary, if at the time of the Executive&#8217;s &#8220;separation from service&#8221; (as
defined in Section 409A) the Executive is a &#8220;specified employee&#8221; (within the
meaning of Section 409A and the Company&#8217;s specified employee identification
policy) and if any payment, reimbursement and/or in-kind benefit that
constitutes nonqualified deferred compensation (within the meaning of Section
409A) is deemed to be triggered by the Executive&#8217;s separation from service,
then, to the extent one or more exceptions to Section 409A are inapplicable
(including, without limitation, the exception under Treasury Regulation Section
1.409A-1(b)(9)(iii) relating to separation pay due to an involuntary separation
from service and its requirement that installments must be paid no later than
the last day of the second taxable year following the taxable year in which such
an employee incurs the involuntary separation from service), all payments,
reimbursements, and in-kind benefits that constitute nonqualified deferred
compensation (within the meaning of Section 409A) to the Executive shall not be
paid or provided to the Executive during the six-month period following the
Executive&#8217;s separation from service, and (i) such postponed payment and/or
reimbursement/in-kind amounts shall be paid to the Executive in a lump sum
within thirty (30) days after the date that is six (6) months following the
Executive&#8217;s separation from service; and (ii) any amounts payable to the
Executive after the expiration of such six- (6-) month period shall continue to
be paid to the Executive in accordance with the terms of this Agreement.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">5 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Reimbursements And In-Kind
Benefits</font></font><font size="2" style="FONT-FAMILY: serif">. Notwithstanding
any other provision of the applicable plans and programs, all reimbursements and
in-kind benefits provided under this Agreement shall be made or provided in
accordance with the requirements of Section 409A, including, where applicable,
the requirement that (i) the amount of expenses eligible for reimbursement and
the provision of benefits in kind during a calendar year shall not affect the
expenses eligible for reimbursement or the provision of in-kind benefits in any
other calendar year; (ii) the reimbursement for an eligible expense will be made
on or before the last day of the calendar year following the calendar year in
which the expense is incurred; (iii) the right to reimbursement or right to
in-kind benefit is not subject to liquidation or exchange for another benefit;
and (iv) each reimbursement payment or provision of in-kind benefit shall be one
of a series of separate payments (and each shall be construed as a separate
identified payment) for purposes of Section 409A. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Term</font></font><font size="2" style="FONT-FAMILY: serif">. The term of this Agreement (the &#8220;Term&#8221;)
shall commence on the Effective Date and shall continue for an initial term of
three (3) years (the &#8220;Initial Term&#8221;). Thereafter, the Term shall continue for
successive one (1) year terms (the &#8220;Additional Terms&#8221;) unless either the Company
or the Executive provides written notice of termination of this Agreement not
less than one hundred twenty (120) days prior to the end of the Initial Term or
any Additional Term, or unless earlier terminated by the mutual written consent
of the Company and the Executive. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Notices</font></font><font size="2" style="FONT-FAMILY: serif">. Any notice required or permitted to be given
under this Agreement shall be sufficient if in writing and if sent by registered
or certified mail, return receipt requested to his residence in the case of the
Executive, or to its principal office in the case of the Company, or to such
other addresses as they may respectively designate in writing. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Entire Agreement; Waiver</font></font><font size="2" style="FONT-FAMILY: serif">. This Agreement contains the entire
understanding of the parties and may not be changed orally but only by an
agreement in writing, signed by the party against whom enforcement of any
waiver, change, modification or discharge is sought. Waiver of or failure to
exercise any rights provided by this Agreement in any respect shall not be
deemed a waiver of any further or future rights. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Binding Effect; Assignment</font></font><font size="2" style="FONT-FAMILY: serif">. The rights and obligations of this Agreement
shall bind and inure to the benefit of any successor of the Company by
reorganization, merger or consolidation, or any assignee of all or substantially
all of the Company&#8217;s business or properties. The Executive&#8217;s rights hereunder
are personal to and shall not be transferable or assignable by the Executive.
</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Headings</font></font><font size="2" style="FONT-FAMILY: serif">. The headings contained in this Agreement are
for reference purposes only and shall not affect the meaning or interpretation
of this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Governing Law; Arbitration</font></font><font size="2" style="FONT-FAMILY: serif">. This Agreement shall be construed in
accordance with and governed for all purposes by the laws and public policy of
the State of Arizona applicable to contracts executed and to be wholly performed
within such state. Any dispute or controversy arising out of or relating to this
Agreement shall be settled by arbitration in accordance with the rules of the
American Arbitration Association and judgment upon the award may be entered in
any court having jurisdiction thereover. The arbitration shall be held in
Maricopa County or in such other place as the parties hereto may
agree.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">6 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Further Assurances</font></font><font size="2" style="FONT-FAMILY: serif">. Each of the parties agrees to execute,
acknowledge, deliver and perform, and cause to be executed, acknowledged,
delivered and performed, at any time and from time to time, all such further
acts, deeds, assignments, transfers, conveyances, powers of attorney and/or
assurances as may be necessary or proper to carry out the provisions or intent
of this Agreement. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Severability</font></font><font size="2" style="FONT-FAMILY: serif">. The parties agree that if any one or more of
the terms, provisions, covenants or restrictions of this Agreement shall be
determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated. </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">Counterparts</font></font><font size="2" style="FONT-FAMILY: serif">. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same Agreement. </font></div>
    <div>&#160;</div>
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caused by instrument to be signed by a duly authorized officer and the Executive
has hereunto set his hand the day and year first above written. </font></div>
    <div>&#160;</div>
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    <div align="center"><font size="2" style="FONT-FAMILY: serif">7 </font></div>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>6
<FILENAME>exhibit99-1.htm
<DESCRIPTION>PRESS RELEASE REGARDING THE APPOINTMENT OF FOKKO PENTINGA
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    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Amtech Promotes Fokko Pentinga to President of
Amtech Systems, Inc. -<br>JS Whang to Continue as CEO and Chairman of the Board
<br></font></font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Strengthening Management for Future Growth
</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">TEMPE, Arizona &#8211; March 16,
2010</font></font><font size="2" style="FONT-FAMILY: serif"> &#8211; Amtech Systems,
Inc. (NASDAQ: ASYS), a global supplier of production and automation systems and
related supplies for the manufacture of solar cells, semiconductors, and silicon
wafers, today announced that Fokko Pentinga, Managing Director of Amtech Europe
and General Manager of Tempress Systems</font><font size="2" style="FONT-FAMILY: serif">&#174;</font><font size="2" style="FONT-FAMILY: serif">, Inc., has been promoted
to President of Amtech Systems, Inc. The Company also entered into an amended
and restated employment agreement with J.S. Whang, who will continue as Chief
Executive Officer and Chairman of the Board of Directors of Amtech Systems,
Inc.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">J.S. Whang, Chief
Executive Officer of Amtech, commented, &#8220;This appointment of Fokko Pentinga to
President of Amtech is another indication of our substantial growth in recent
years and, more importantly, the anticipated growth ahead of us, which calls for
a strengthening of our management depth. Fokko was instrumental in securing
Tempress&#8217; successful R&amp;D partnership with Yingli Green Energy Holding Co.,
LTD (NYSE: YGE) and the Energy Research Centre of the Netherlands (ECN), and
obtaining the recently announced 300MW order from Yingli. Fokko brings to the
President&#8217;s office a thorough knowledge of our technologies and products and
proven management, sales and marketing skills. I am very pleased and excited to
have him join our executive ranks. While Fokko has responsibility for all of
Amtech&#8217;s subsidiaries in his role as President, his near-term focus will be on
executing the operational ramp-up needed at our European operations to support
our tremendous backlog of solar orders.&#8221; </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Mr. Pentinga has over
30 years of experience in the semiconductor and solar industries and has spent
the past 15 years as general manager of Amtech&#8217;s solar subsidiary, Tempress
Systems. In December 2008 Mr. Pentinga was appointed as Managing Director of
Amtech Europe, which is comprised of Tempress Systems in Vaassen, the
Netherlands, and R2D Automation</font><font size="2" style="FONT-FAMILY: serif">&#174;</font><font size="2" style="FONT-FAMILY: serif"> in Montpellier, France.
Amtech&#8217;s other subsidiaries include Bruce Technologies</font><font size="2" style="FONT-FAMILY: serif">&#174;</font><font size="2" style="FONT-FAMILY: serif">, Inc. in Billerica, Massachusetts, and P.R. Hoffman</font><font size="2" style="FONT-FAMILY: serif">&#174;</font><font size="2" style="FONT-FAMILY: serif"> Machine Products, Inc. in Carlisle, Pennsylvania.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">About Amtech Systems, Inc.
<br></font></font><font size="2" style="FONT-FAMILY: serif">Amtech Systems, Inc.
manufactures capital equipment, including silicon wafer handling automation,
thermal processing equipment, and related consumables used in fabricating solar
cells and semiconductor devices. Semiconductors, or semiconductor chips, are
fabricated on silicon wafer substrates, sliced from ingots, and are part of the
circuitry, or electronic components, of many products including solar cells,
computers, telecommunications devices, automotive products, consumer goods, and
industrial automation and control systems. The Company&#8217;s wafer handling, thermal
processing and consumable products currently address the diffusion, oxidation,
deposition, PECVD, and PSG removal steps used in the fabrication of solar cells,
semiconductors, MEMS and the polishing of newly sliced silicon wafers.
www.amtechsystems.com</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Statements contained in this press release
that are not historical facts may be forward looking statements within the
meaning of the Private Litigation Reform Act. Such statements may use words such
as &#8220;proposed,&#8221; "anticipate," "believe," "estimate," "expect," "intend,"
"predict," "project" and similar expressions as they relate to Amtech Systems,
Inc. or our management. When we make forward-looking statements, we are basing
them on our management's beliefs and assumptions, using information currently
available to us. Although we believe that the expectations reflected in the
forward looking statements are reasonable, these forward-looking statements are
subject to risks, uncertainties, and assumptions including the risks discussed
in our filings with the Securities and Exchange Commission. If one or more of
these risks materialize, or if our underlying assumptions prove to be incorrect,
actual results may vary materially from what we projected. Any forward looking
statements contained in this press release reflect our current views with
respect to future events and are subject to these and other risks, uncertainties
and assumptions relating to our operations, results of operations, growth
strategy and liquidity. We have no intention, and disclaim any obligation, to
update or revise any forward-looking statements, whether as a result of new
information, future results or otherwise. </font></font></div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Contacts: <br></font></font><font size="2" style="FONT-FAMILY: serif">Amtech Systems, Inc<br>Bradley C.
Anderson<br>Chief Financial Officer<br>(480) 967-5146 </font></div>
    <div align="justify">&#160;</div>
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