IBIS TECHNOLOGY CORP
EX-10.2
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<FILENAME>a07-18917_1ex10d2.htm
<DESCRIPTION>EX-10.2
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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.2<a name="Exhibit10_2_215306"></a></font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREEMENT</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is entered
into as of the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;th day of August, 2007 by and
between Ibis Technology Corporation, a Massachusetts corporation (the </font>&#147;Company&#148;) and Charles M. McKenna (the &#147;Executive&#148;).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b> the
Executive desires to enter into this Agreement to provide him with certain
financial protection in the event that his employment terminates for certain
reasons in connection with or within a period of time after a change of control of the Company; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b> the
Board of Directors of the Company has determined that it is in the best
interests of the Company to enter into this Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW, THEREFORE</font></b>,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Executive agree as follows:</p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u style="font-weight:bold;">DEFINITIONS</u>.</b></font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u style="font-weight:bold;">Cause</u>.</b>&#160;
As used herein, &#147;Cause&#148; shall mean a termination for one or more of the
following reasons, as determined by a majority vote of the Board:&#160; (i)&nbsp;Executive&#146;s continuing failure to
render services to the Company in accordance with his assigned duties and such
failure of performance continues for a period of more than 120 days after
notice thereof has been provided to the Executive by the Board; (ii)&nbsp;the
Executive&#146;s willful misconduct or gross negligence; (iii)&nbsp;the Executive is
convicted of a felony, either in connection with the performance of his
obligations to the Company or which conviction materially adversely affects his
ability to perform such obligations, or materially adversely affects the
business activities, reputation, goodwill or image of the Company;
(iv)&nbsp;willful disloyalty, deliberate dishonesty, breach of fiduciary duty;
(v)&nbsp;the commission by the Executive of an act of fraud, embezzlement or
deliberate disregard of the rules or policies of the Company which results in
significant loss, damage or injury to the Company; (vi)&nbsp;the Executive&#146;s
willful unauthorized disclosure of any trade secret or confidential information
of the Company; or (vii)&nbsp;Executive&#146;s willful commission of an act which
constitutes unfair competition with the Company or which induces any employee
or customer of the Company to break a contract with the Company.</font></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In making any
determination under this Section 1(a), the Board shall act fairly and in utmost
good faith and shall give the Executive an opportunity to appear and be heard
at a meeting of the Board or any committee thereof and present evidence on his
behalf.&#160; For purposes of this Section, no
act, or failure to act, by the Executive shall be considered &#147;willful&#148; unless
done, or admitted to be done, by the Executive in bad faith and without
reasonable belief that such action or omission was in the best interest of the
Company.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Change Of Control</u></b>.&#160; As used herein, a &#147;Change of Control&#148; shall
be deemed to have occurred if (i)&nbsp;there is a sale or transfer of all or </font>substantially all of the assets of the
Company in one or a series of transactions; (ii)&nbsp;any &#147;person,&#148; as such
term is used in Section&nbsp;13(d) of the Securities Exchange Act of 1934, as
amended (or any successor provision) (the &#147;Exchange Act&#148;), together with all &#147;affiliates&#148;
and &#147;associates&#148; (as such terms are defined in Rule 12b-2 under the Exchange
Act or any successor provision) of such person, shall become the </h2>


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<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;beneficial
owner&#148; or &#147;beneficial owners&#148; (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act or any successor provision), directly or indirectly, of securities
of the Company representing in the aggregate thirty percent (30%) or more of
either (1)&nbsp;the then outstanding shares of common stock of the Company or
(2)&nbsp;the combined voting power of all then outstanding securities of the
Company having the right under ordinary circumstances to vote in an election of
the Board of Directors of the Company (hereafter referred to as an &#147;Acquisition&#148;);
PROVIDED, that, notwithstanding the foregoing, an Acquisition shall not be
deemed to have occurred for purposes of this clause (ii) solely as the result
of an acquisition of securities by the Company which, by reducing the number of
shares of common stock or other voting securities outstanding, increases
(x)&nbsp;the proportionate number of shares of common stock beneficially owned
by any person to thirty percent (30%) or more of the common stock then
outstanding or (y)&nbsp;the proportionate voting power represented by the
voting securities beneficially owned by any person to thirty percent (30%) or
more of the combined voting power of all then outstanding voting securities; or
(iii)&nbsp;there is a merger or consolidation between the Company and an entity
other than a subsidiary of the Company in which the Company is not the
continuing or surviving corporation and pursuant to which the holders of the
Company&#146;s voting stock immediately prior to such merger or consolidation would
not be the holders immediately after such merger or consolidation of at least
50% of the voting stock of the continuing or surviving corporation.</font></h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Good Reason</u></b>.&#160; As
used herein, a &#147;Good Reason&#148; shall mean a </font>material change in the Executive&#146;s authority, functions, duties or
responsibilities as President and Chief Executive Officer of the Company
(including, without limitation, material changes in the control or managerial
structure of the Company) which would cause his position with the Company to
become of less dignity, responsibility, importance or scope than his position
on the date hereof or as of any subsequent date prior to the Change of Control,
a reduction in the Executive&#146;s salary or a material reduction in benefits from
the amount of salary paid or the value of the benefits available on the date
hereof or as of any subsequent date prior to the Change of Control, a transfer
of the principal location of the place of performance of the Executive&#146;s duties
from the Danvers, Massachusetts area without the Executive&#146;s consent, or the
failure of the Board of Directors of the Company to elect the Executive as
President and Chief Executive Officer of the Company at any time such elections
are made, or removal from such office of the Company, PROVIDED that such
material change is not in connection with a termination of the Executive&#146;s
employment for Cause, and, PROVIDED, FURTHER, that any notice of termination by
the Executive for Good Reason shall be given by him within ninety (90) days of
when he becomes aware of such change, of such failure or removal.</h2>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u style="font-weight:bold;">SEVERANCE COMPENSATION</u></b>.&#160; In the event that at or near the time of, in
connection with, or within a period of two (2) years after, a Change of
Control, the Executive&#146;s employment with the Company is terminated either
(i)&nbsp;by the Company other than for Cause or (ii)&nbsp;by the Executive for
a Good Reason, then the Company, within ten (10) days of the applicable
termination date, shall pay to the Executive, in addition to any amounts due to
Executive for services rendered prior to the termination date, a lump sum
amount equal to two (2) times the Executive&#146;s highest Annual Salary during the
preceding three year period, including the year of such termination.&#160; Annual Salary shall mean Executive&#146;s annual
base salary and bonus, excluding reimbursements and amounts attributable to stock
options and other non-cash compensation.</font></h1>


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<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">CONTINUATION OF BENEFITS</u></b>.&#160; In the event that at the time of, in
connection with, or within a period of (2) two years after a Change in Control,
the Executive&#146;s employment with the Company is terminated either (i)&nbsp;by
the Company </font>other than for Cause
or (ii)&nbsp;by the Executive for a Good Reason, then the Company shall arrange
to provide the Executive with life, disability, group dental and health
insurance benefits substantially similar to those the Executive was receiving,
immediately prior to the termination, until the earlier of (a)&nbsp;two (2)
years following his termination date, or (b)&nbsp;the date upon which he
becomes eligible for such coverage offered by a subsequent employer.&#160; Executive&#146;s termination date shall be the
date of any qualifying event under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (&#147;COBRA&#148;) and the COBRA coverage that may be
available to Executive, if any, shall be offset by any period of coverage
provided hereunder.</h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u style="font-weight:bold;">SPECIFIED EMPLOYEE</u></b>.&#160; Notwithstanding the provisions of
Sections&nbsp;2 and 3, if the Executive is a &#147;specified employee&#148; within the
meaning of Section 409A(a)(2)(B) of the Internal Revenue Code of 1986, as
amended (the &#147;Code&#148;), then payment of the amount described in Section 2(a)
shall be made on the date which is six (6) months after the applicable
termination date or, if earlier, the date of death of the Executive, and the
benefit described in Section 3 shall commence on the date which is six (6)
months after the applicable termination date and, subject to the other
provisions of Section 3, continue until thirty (30) months after the applicable
termination date.</font></p>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">NO DUPLICATION OF
COMPENSATION OR BENEFITS</u></b>.&#160;
The Executive&#146;s severance compensation and benefits set forth in
Sections&nbsp;2 and 3 above shall replace, and </font>be provided in lieu of, any severance compensation and benefits that
may be provided to Executive; under any other agreement PROVIDED, that this
prohibition against duplication shall not be construed to otherwise limit
Executive&#146;s rights as to payments or benefits provided under any pension plan
(as defined in Section 3(2) of the Employee Retirement Income Security Act of
1974, as amended), deferred compensation, stock, stock option or similar plan
sponsored by the Company.</h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u style="font-weight:bold;">ENFORCEABILITY; REDUCTION</u></b>.</font></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If any provision of this
Agreement shall be deemed invalid or unenforceable as written, this Agreement
shall be construed, to the greatest </font>extent possible, or modified, to the extent allowable by law, in a
manner which shall render it valid and enforceable and any limitation on the
scope or duration of any provision necessary to make it valid and enforceable
shall be deemed to be a part thereof.&#160; No
invalidity or unenforceability of any provision contained herein shall affect
any other portion of this Agreement.</h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding anything
provided herein, if the Executive is a &#147;disqualified individual&#148; (as defined in
Section 280G of the </font>Code, and
the severance compensation and continuation of benefits provided for in
Sections 2 and 3 hereof (collectively &#147;Severance Compensation&#148;) together with
any other payments which the Executive has the right to receive from the
Company (or its affiliates and subsidiaries), would constitute a &#147;parachute
payment&#148; (as defined in Section 280G(b)(2) of the Code), the Severance
Compensation shall be reduced.&#160; The
reduction shall be in an amount so that the present value of the total amount
received by the Executive from the Company (or its affiliates and subsidiaries)
will be one dollar ($1.00) less than three (3) times the Executive&#146;s Base
Amount (as defined in Section 280G of the Code) so </h2>


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<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">that no portion of the
amounts received by the Executive shall be subject to the excise tax imposed by
Section 4999 of the Code (excise tax).</font></h2>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The determination as to
whether any reduction in Severance Compensation is necessary and the amount of
any such reduction shall be made by the Company&#146;s </font>independent public accountants (the &#147;Accounting
Firm&#148;) which shall provide detailed supporting calculations both to the Company
and to the Executive within fifteen (15) business days of the Executive&#146;s
termination date.&#160; Any such determination
by the Accounting Firm shall be conclusive and binding upon the Executive and
the Company.&#160; The Executive shall determine
which part of the Severance Compensation shall be eliminated or reduced
consistent with the requirements of this Section&nbsp;5 and shall notify the
Company promptly in writing; PROVIDED, that if the Executive does not make such
determination within ten (10) business days of the receipt of the calculations
made by the Accounting Firm, the Company shall determine which part of the
Severance Compensation shall be eliminated or reduced consistent with the
requirements of this Section&nbsp;5 and shall notify the Executive promptly in
writing of such election.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If through error or
otherwise the Executive should receive payments under this Agreement, together
with other payments the Executive has the right </font>to receive from the Company (or its
affiliates and subsidiaries), in excess of one dollar ($1.00) less than three
times his Base Amount, the Executive shall immediately repay the excess to the
Company upon notification that an overpayment has been made.</p>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">MITIGATION</u></b>.&#160; The Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by seeking
other employment or otherwise, </font>nor
shall the amount of any payment provided for herein be reduced by any
compensation earned by the Executive as the result of employment by another
employer or by retirement benefits after the termination date or otherwise.</h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">NOTICES.</u></b>&#160; All notices, requests, consents and other
communications hereunder shall be in writing, shall be addressed to the
receiving party&#146;s address set </font>forth
below or to such other address as a party may designate by notice hereunder,
and shall be either (i)&nbsp;delivered by hand, (ii)&nbsp;made by telex,
telecopy or facsimile transmission, (iii)&nbsp;sent by overnight courier, or
(iv)&nbsp;sent by registered or certified mail, return receipt requested,
postage prepaid.</h1>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">If to the Company</font></b>:</p>

<p style="margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ibis Technology Corporation<br>
32 Cherry Hill Drive<br>
Danvers, MA 01923<br>
Attn:&#160; Board of Directors</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">If to
the Executive</font></b>:</p>

<p style="margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charles M. McKenna, Ph.D.<br>
55 Herrick Road<br>
Boxford, MA&#160; 01921</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All notices, requests,
consents and other communications hereunder shall be deemed to have been given
either (i)&nbsp;if by hand, at the time of the delivery </font>thereof to the receiving party at the address
of such party set forth above, (ii)&nbsp;if made by telex, telecopy or
facsimile transmission, at the time that receipt thereof has been acknowledged
by electronic confirmation or otherwise, (iii)&nbsp;if sent by overnight
courier, on the next business day following the day such notice is delivered to
the courier service, or (iv)&nbsp;if sent by registered or certified mail, on
the 5th business day following the day such mailing is made.</p>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">ENTIRE AGREEMENT</u></b>.&#160; The Previous Agreement is hereby restated and
amended in its entirety with this Agreement.&#160;
This Agreement embodies the entire agreement and understanding between
the parties hereto with respect to the subject matter </font>hereof and supersedes all prior oral or
written agreements and understandings relating to the subject matter
hereof.&#160; No statement, representation,
warranty, covenant or agreement of any kind not expressly set forth in this
Agreement shall affect, or be used to interpret, change or restrict, the
express terms and provisions of this Agreement.</h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u style="font-weight:bold;">MODIFICATIONS AND AMENDMENTS</u></b>.&#160; The terms and provisions of this Agreement
may be modified or amended only by written agreement executed by all parties
hereto.</font></h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">WAIVERS AND CONSENTS</u></b>.&#160; The terms and provisions of this Agreement
may be waived, or consent for the departure therefrom granted, only by written
document </font>executed by the party
entitled to the benefits of such terms or provisions.&#160; No such waiver or consent shall be deemed to
be or shall constitute a waiver or consent with respect to any other terms or
provisions of this Agreement, whether or not similar.&#160; Each such waiver or consent shall be
effective only in the specific instance and for the purpose for which it was
given, and shall not constitute a continuing waiver or consent.</h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">ASSIGNMENT</u></b>.&#160; The rights and obligations under this
Agreement may not be assigned by either party hereto without the prior written
consent of the other </font>party.</h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">BENEFIT.</u></b>&#160; All statements, representations, warranties,
covenants and agreements in this Agreement shall be binding on the parties
hereto and shall </font>inure to the
benefit of the respective successors and permitted assigns of each party
hereto.&#160; Nothing in this Agreement shall
be construed to create any rights or obligations except among the parties
hereto, and no person or entity shall be regarded as a third-party beneficiary
of this Agreement.</h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">GOVERNING LAW</u></b>.&#160; This Agreement and the rights and obligations
of the parties hereunder shall be construed in accordance with and governed by
the law of the </font>Commonwealth of
Massachusetts, without giving effect to the conflict of law principles thereof.</h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">JURISDICTION AND SERVICE
OF PROCESS</u></b>.&#160; Any legal
action or proceeding with respect to this Agreement may be brought in the
courts of the Commonwealth of </font>Massachusetts
or of the United States of America for the District of Massachusetts.&#160; By execution and delivery of this Agreement,
each of the parties hereto accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts.&#160; Each of the parties hereto irrevocably
consents to the service of process of any of the </h1>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">aforementioned courts in any
such action or proceeding by the mailing of copies thereof by certified mail,
postage prepaid, to the party at its address set forth in Section&nbsp;7
hereof.</font></h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">NO WAIVER OF RIGHTS,
POWERS AND REMEDIES</u>.</b>&#160; No
failure or delay by a party hereto in exercising any right, power or remedy
under this Agreement, and no </font>course
of dealing between the parties hereto, shall operate as a waiver of any such
right, power or remedy of the party.&#160; No
single or partial exercise of any right, power or remedy under this Agreement
by a party hereto, nor any abandonment or discontinuance of steps to enforce
any such right, power or remedy, shall preclude such party from any other or
further exercise thereof or the exercise of any other right, power or remedy
hereunder.&#160; The election of any remedy by
a party hereto shall not constitute a waiver of the right of such party to
pursue other available remedies.&#160; No
notice to or demand on a party not expressly required under this Agreement
shall entitle the party receiving such notice or demand to any other or further
notice or demand in similar or other circumstances or constitute a waiver of
the rights of the party giving such notice or demand to any other or further
action in any circumstances without such notice or demand.</h1>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">COUNTERPARTS</u></b>.&#160; This Agreement may be executed in one or more
counterparts, and by different parties hereto on separate counterparts, each of
which shall be </font>deemed an
original, but all of which together shall constitute one and the same
instrument.</h1>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b>,
the parties have executed this Agreement as of the day and year first above written.</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.76%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMPANY:</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.4%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.76%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IBIS TECHNOLOGY CORPORATION</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.4%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">By:</font></b></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.4%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:44.4%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Authorized Officer</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.4%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.76%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXECUTIVE:</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:49.76%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:49.76%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHARLES M. MCKENNA</font></b></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>
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