AXCELIS TECHNOLOGIES INC
EX-10.1
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.1</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AXCELIS TECHNOLOGIES, INC.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Axcelis Team Incentive Plan for Executive Officers</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Adopted by the Compensation Committee of the Board of
Directors on January 26, 2005</font></b></p>

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<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1. <u>Purpose</u>. </font></b><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Compensation Committee of the Board of Directors of Axcelis Technologies, Inc.
(together with its affiliates, the &#147;Company&#148;) has adopted this Plan in order to
provide incentives in the form of cash bonuses to the Company&#146;s executive
officers to make significant contributions to the Company&#146;s success and
profitability.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2. <u>Administration</u>.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)
This Plan shall be administered by the Compensation Committee (the &#147;Committee&#148;)
of the Company&#146;s Board of Directors. Subject to the express terms of the Plan,
the Committee shall have full power and authority to construe, interpret and
administer the Plan. The Committee&#146;s decisions hereunder shall be final and
binding.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)
The Committee shall from time to time: (i) determine the executive officers who
will participate in the Plan (each, a &#147;Participant&#148;) for any fiscal year or other
period (a &#147;Performance Period&#148;); (ii) set a target bonus amount and any
additional potential bonus amounts for each Participant for each Performance
Period; and (iii) establish Performance Goals in accordance with Section 3 and
any other terms and conditions applicable to participants&#146; incentive bonuses
for each Performance Period.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)
A Participant&#146;s potential bonus and applicable Performance Goals established
under the Plan shall be evidenced by a writing delivered to the Participant and
containing such other terms and conditions not inconsistent with the provisions
of the Plan as the Committee considers necessary or advisable to achieve the
purposes of the Plan or to comply with applicable tax and regulatory laws and
accounting principles.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3. <u>Performance Goals</u>.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)
The Committee shall establish for each Participant and for each Performance
Period one or more goals related to the performance (defined by absolute and/or
relative measures) of the Company, any of its divisions, business units,
subsidiaries, products or lines of business, and/or the Participant personally
(&#147;Performance Goals&#148;). Such Goals may be based on any one or more of the
following criteria: revenue; revenue growth; sales; expenses; margins; net
income; earnings or earnings per share; cash flow; shareholder return; return
on investment; return on invested capital, assets, or equity; profit before or
after tax; operating profit; return on research and development investment;
market capitalization; product development and improvements; market share;
cycle time reductions; customer satisfaction measures; strategic positioning or
marketing programs; business/information systems improvements; expense
management; infrastructure support programs; human resource programs; customer
programs; technology development programs; and any other financial metric(s)
and/or operational or strategic programs.&#160;
Personal performance may be a multiplier against other Performance
Goals.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)
The Committee may determine threshold, target(s), or other levels of performance
that must be achieved, with corresponding threshold, target, maximum, upside,
or other bonus payments contingent upon the attainment of the relevant
Performance Goals. In establishing the performance levels, the Committee may
specify the measures to be used to evaluate Performance Goal achievement and
the weighting of each Performance Goal.</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4. <u>Bonus Payments</u>.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)
Within a reasonable time after the end of any Performance Period (which may at
the Committee&#146;s discretion be after the Company&#146;s receipt of an audit opinion
on its financial statements in the case of a fiscal year period) and before
payment of any bonus, the Committee shall determine the extent to which the
respective Performance Goals and any other material terms of the bonus awards have
been satisfied.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)
The Committee shall determine the effect on any payment under the Plan of the
disability, death, retirement or other termination of service of a Participant.
The Committee may in its discretion at any time modify or terminate any Participant&#146;s
eligibility for any payment hereunder if the Committee determines that the
Participant has engaged in activity in competition with, or otherwise harmful
to the interests of, the Company. No benefit under the Plan may be assigned or
transferred by a Participant during the Participant&#146;s lifetime.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)
Participants may defer receipt of all or any portion of a bonus under this Plan
if and to the extent permitted under any deferred compensation plan of the
Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)
A Participant shall pay to the Company, or make provision satisfactory to the
Committee for payment of, any taxes required by law to be withheld in respect
of payments under the Plan no later than the date of the event creating the tax
liability. The Company may, to the extent permitted by law, deduct any such tax
obligations from the Participant&#146;s respective bonus or from any other payment
due to the Participant.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5. <u>Change in Control</u>.</font></b><font size="2" face="Times New Roman" style="font-size:10.0pt;">
In addition to any rights a Participant may have under a Change of Control
Agreement with the Company, in order to preserve a Participant&#146;s rights
hereunder in the event of a change in control of the Company (as defined by the
Committee), the Committee in its discretion may, at any time, take one or more
of the following actions: (i) provide for the acceleration of any time period
relating to any payment hereunder, (ii) provide for payment to the Participant
upon the change in control of cash or other property equal to the amount that
would otherwise have been paid hereunder, (iii) adjust the criteria applicable
to the payment of any amount hereunder in a manner determined by the Committee
to reflect the change in control, (iv) cause the Company&#146;s obligations under
this Plan to be assumed, or new obligations substituted therefor, by another
entity, or (v) make such other provision as the Committee may consider
equitable to Participants and in the best interests of the Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6. <u>Unfunded Plan</u>.</font></b><font size="2" face="Times New Roman" style="font-size:10.0pt;">
The Plan shall be unfunded. The Company shall not be required to segregate any
assets for payment under the Plan, nor shall the Plan be construed as providing
for such segregation, nor shall the Company, the Board of Directors or the
Committee be deemed to be a trustee of any amount payable under the Plan. Any
liability of the Company to any Participant under the Plan shall be based
solely upon any contractual obligations that may be created pursuant to the
Plan, and no such obligation of the Company shall be deemed to be secured by
any pledge or other encumbrance on any property of the Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7. <u>No Right to Continued Employment</u>.</font></b><font size="2" face="Times New Roman" style="font-size:10.0pt;">
No person shall have any claim or right to participate in the Plan.
Participation in any period shall not confer any right to participate in any
subsequent period. Neither the adoption, maintenance or operation of the Plan
nor any notification of a potential bonus hereunder shall confer upon any
person any right with respect to continued employment with the Company nor
shall they interfere with the rights of the Company at any time to terminate or
otherwise change the terms of his or her employment, including, without
limitation, the right to promote, demote or otherwise re-assign any employee
from one position to another within the Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8. <u>Amendment and Termination of Plan</u>.</font></b><font size="2" face="Times New Roman" style="font-size:10.0pt;">
The Committee may amend, suspend or terminate the Plan in order to comply with
any legal requirements or for any other purpose permitted by law. The Committee
shall determine the effect of such action on any proposed payment(s) under the
Plan.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9. <u>Governing Law</u>.</font></b><font size="2" face="Times New Roman" style="font-size:10.0pt;">
The Plan shall be governed by, and construed in accordance with, the internal
laws of the Commonwealth of Massachusetts.</font></p>

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