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    <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">As filed
with the Securities and Exchange Commission on July 24, 2008</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>Registration No.
333-______</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 20pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">Washington,
D.C. 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">________</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 20pt; FONT-FAMILY: Times New Roman">FORM
S-8</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">REG<font size="+0">ISTR</font>ATION STATEMENT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">UNDER</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">THE
SECURITIES ACT OF 1933</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font style="TEXT-DECORATION: none"><font style="DISPLAY: inline; TEXT-DECORATION: none">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<font style="FONT-WEIGHT: bold; FONT-SIZE: 24pt; FONT-FAMILY: Times New Roman">Key
Technology, Inc.</font></font><font size="+0">&#160;&#160;</font>&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
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        <hr style="COLOR: black" align="left" noshade size="1" width="100%">
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
name of registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><br><br>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
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              <td valign="bottom" width="47%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">Oregon</font></div>
              </td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="47%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">93-0822509</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="47%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(State
      or other jurisdiction of incorporation or organization)</font></div>
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              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="47%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(IRS
      Employer Identification No.)</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="47%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="47%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="bottom" width="47%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">150
      Avery Street</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">Walla
      Walla, Washington</font></div>
              </td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="47%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">99362</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="47%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Address
      of principal executive offices)</font></div>
              </td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="47%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Zip
      Code)</font></div>
              </td>
            </tr>
        </table>
      </div><br><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font size="+0"><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: none">&#160;&#160;&#160;&#160;&#160;<font style="FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">2003 Restated Employees'
Stock Incentive Plan</font></font><font style="DISPLAY: inline; TEXT-DECORATION: none">&#160;&#160;&#160;&#160;&#160;&#160;</font></font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <div>
        <hr style="COLOR: black" align="center" noshade size="1" width="50%">
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Full
title of the plan)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">David M.
Camp</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman; TEXT-DECORATION: none">150
Avery Street</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman; TEXT-DECORATION: none">Walla
Walla, Washington&#160;&#160;99362</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman; TEXT-DECORATION: none">&#160;(509)
529-2161
</font></font>
      <div>
        <hr style="COLOR: black" align="center" noshade size="1" width="50%">
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: none">(Name,
address and telephone number of agent for service)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Copies
to:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font size="+0"><br></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Thomas P.
Palmer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Tonkon
Torp LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1600
Pioneer Tower</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">888 S.W.
Fifth Avenue</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Portland,
Oregon&#160;&#160;97204</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(503)
221-1440</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font>

      <div>
        <hr style="COLOR: black" align="left" noshade size="1" width="100%">
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
      <div>
        <hr style="COLOR: black" align="left" noshade size="4" width="100%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="TEXT-DECORATION: none">&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: none">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></div>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div><br>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CALCULATION
OF REGISTRATION FEE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Title
      of securities to be registered</font></div>
            </td>
            <td valign="top" width="17%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      to be registered<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(1)</font></font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      maximum offering price per share</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      maximum aggregate offering price</font></div>
            </td>
            <td valign="top" width="19%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      of</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">registration
      fee</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">Common
      Stock, no par value</font></div>
            </td>
            <td valign="top" width="17%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">200,000 shares</font><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(2)</font></font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$32.31<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(3)</font></font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$6,462,000.00</font></div>
            </td>
            <td valign="top" width="19%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$253.96</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(1)</font>&#160;&#160;There
are also registered an undetermined number of additional shares of common stock
that may become available for purchase in accordance with the provisions of the
Key Technology 2003 Restated Employees' Stock Incentive Plan (the "Plan") in the
event of any future change in the outstanding shares of common stock as a result
of a stock dividend, stock split or similar adjustment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(2)</font>&#160;&#160;This
filing registers an additional 200,000 shares of common stock of Key Technology,
Inc. (the "Company") reserved for issuance under the Plan.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <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"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(3)</font>&#160;&#160;The
offering price of $32.31 per share was the average of the high and low prices of
the Company's common stock on July 21, 2008 on the Nasdaq Global
Market.&#160;&#160;The aggregate offering price is estimated solely for the
purposes of calculating the registration fee pursuant to Rule 457(h)(1) and Rule
457(c).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font><a name="KItmp">The reoffer prospectus
contained in this Registration Statement is a combined prospectus pursuant to
Rule 429(a) under the Securities Act of 1933 and relates to unsold shares, if
any, that may be offered or sold by the selling shareholders named therein that
were registered on registration statements filed on November 17, 2000
(Registration No. 333-50130) and September 23, 2005 (Registration No.
333-128512), each as amended by Post-Effective Amendment No. 1 to Form S-8
Registration Statements filed on September 11, 2007 (Registration No.
333-50130).</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Explanatory
Note</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Key Technology, Inc. (the "Company")
has prepared this Registration Statement (the "Registration Statement") in
accordance with the requirements of Form S-8 under the Securities Act of 1933,
as amended (the "Securities Act"), to register an additional 200,000 shares of
common stock of the Company reserved for issuance under the Company's 2003
Restated Employees' Stock Incentive Plan (the "Plan").&#160;&#160;The additional
shares to be registered on this Registration Statement are of the same class as
those securities covered by the Company's previously-filed registration
statements on Form S-8 filed on November 17, 2000 (Registration No. 333-50130)
and September 23, 2005 (Registration No. 333-128512), each as amended by
Post-Effective Amendment No. 1 to Form S-8 Registration Statements filed on
September 11, 2007 (Registration No. 333-50130) (collectively, the "Prior
Registration Statements").&#160;&#160;Pursuant to General Instruction E to Form
S-8, this Registration Statement incorporates by reference the contents of the
Prior Registration Statements, including reports under the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), that the Company has filed since
the date of the Prior Registration Statements.&#160;&#160;Pursuant to Rule
429(b) under the Securities Act, this Registration Statement will also
constitute Post-Effective Amendment No. 2 to Registration Statements Nos.
333-50130 and 333-128512.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>This Registration Statement includes a
reoffer prospectus prepared in accordance with General Instruction C of Form S-8
and in accordance with the requirements of Part I of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
S-3.&#160;&#160;The reoffer prospectus included in this Registration Statement
is being filed herewith pursuant to General Instruction E of Form
S-8.&#160;&#160;Pursuant to Rule 429(b) under the Securities Act, the reoffer
prospectus is a combined prospectus which also relates to any unsold shares of
common stock of the Company issued to the selling shareholders under the Plan
and registered under the Prior Registration Statements.&#160;&#160;The reoffer
prospectus may be used for reoffers of shares of restricted common stock defined
as "control securities" and "restricted securities" under General Instruction C
to Form S-8 (as that term is defined in Rule 144(a)(3) of the General Rules and
Regulations under the Securities Act) pursuant to grants made under the
Plan.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REOFFER
PROSPECTUS</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">KEY
TECHNOLOGY, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">54,697
Shares of Common Stock</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>This reoffer prospectus (the
"prospectus" or "reoffer prospectus") is being used in connection with the
offering from time-to-time by certain directors and officers of Key Technology,
Inc. (the "selling shareholders") or their successors in interest of shares of
restricted common stock (the "shares" or "common stock") of Key Technology, Inc.
issued to or that may be issued to the selling shareholders pursuant to Key
Technology's 2003 Restated Employees' Stock Incentive Plan (the
"Plan").&#160;&#160;The Plan was originally known as the 1989 Employees' Stock
Option Plan.&#160;&#160;Its name was changed in 1996 to the 1996 Employees'
Stock Option Plan, and in 2004 its name was changed to the 2003 Restated
Employees' Stock Incentive Plan.&#160;&#160;Unless the context clearly indicates
otherwise, the terms "we," "us," "our," "Key" or the "Company" refer to Key
Technology, Inc. and its operating subsidiaries.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <div>&#160;</div>
      <div align="center">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">
            <tr bgcolor="#cceeff">
              <td width="32%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;Shares of
      common stock offered <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">by
      selling shareholders</font></font></td>
              <td width="68%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">54,697</font></td>
            </tr>
        </table>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">
          <tr bgcolor="#cceeff">
            <td valign="top" width="32%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;Offering
      Price</font></td>
            <td width="68%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font size="+0">The
      <font size="3" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">shares
      will be sold from time-to-time by the selling shareholders or by their
      pledgees, donees, transferees or other successors in
      interest.&#160;&#160;Such sales may be made on the Nasdaq Global Market at
      prices and at terms then prevailing or at prices related to the then
      current market price, or in negotiated transactions.&#160;&#160;On July
      21, 2008, the closing sales price of the Company's common stock on the
      Nasdaq Global Market was $32.38 per
  share.</font></font></font></td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">
          <tr bgcolor="#cceeff">
            <td width="32%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;Nasdaq Global
      Market Symbol</font></td>
            <td width="68%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">KTEC</font></td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <div>
        <hr style="COLOR: black" align="center" noshade size="1" width="50%">
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>The common stock involves a high degree
of risk.&#160;&#160;See "Risk Factors" beginning on page&#160;5.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <div>
        <hr style="COLOR: black" align="center" noshade size="1" width="50%">
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved these
securities or passed upon the adequacy or accuracy of this
prospectus.&#160;&#160;Any representation to the contrary is a criminal
offense.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <div>
        <hr style="COLOR: black" align="center" noshade size="1" width="50%">
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The date
of this prospectus is July 24, 2008.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><a name="Table_of_Contents">TABLE OF CONTENTS</a></font></div>
    <div align="center">&#160;</div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">
          <tr bgcolor="#cceeff">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#prospectus">PROSPECTUS SUMMARY</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;6</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#forward">FORWARD-LOOKING INFORMATION</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;8</font></td>
          </tr>
          <tr bgcolor="#cceeff">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#riskfactors">RISK FACTORS</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;8</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#offering">THIS OFFERING</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;10</font></td>
          </tr>
          <tr bgcolor="#cceeff">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#useofproceeds">USE OF PROCEEDS</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;10</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#sellingshareholders">SELLING SHAREHOLDERS</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;10</font></td>
          </tr>
          <tr bgcolor="#cceeff">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#distribution">PLAN OF DISTRIBUTION</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;12</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#legal">LEGAL MATTERS</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;12</font></td>
          </tr>
          <tr bgcolor="#cceeff">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#experts">EXPERTS</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;12</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="98%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;<a href="#disclosure">DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION
      FOR SECURITIES ACT LIABILITIES</a></font></td>
            <td width="2%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;12</font></td>
          </tr>
      </table>
    </div>
    <div>&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <div>
        <hr style="COLOR: black" align="center" noshade size="1" width="50%">
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>This prospectus incorporates by
reference important business and financial information about us that is not
included in or delivered with this prospectus.&#160;&#160;You may request a copy
of all documents that are incorporated by reference into this prospectus by
writing or calling Key at the following
address:&#160;&#160;Attention:&#160;&#160;Ronald L. Greenman, Secretary, Key
Technology, Inc., 150 Avery Street, Walla Walla, Washington 99362, telephone
(509) 529-2161.&#160;&#160;Copies of all documents requested will be provided
without charge (not including the exhibits to those documents, unless the
exhibits are specifically incorporated by reference into those documents or this
prospectus).</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="center">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"><a href="#Table_of_Contents">Table of Contents</a></font></div>
      </div>
    </div><br>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="80%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; PADDING-LEFT: 0pt; BORDER-LEFT: black 1px solid">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><a name="prospectus">PROSPECTUS SUMMARY</a></font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman">This
      summary highlights selected information from this prospectus and may not
      contain all the information that is important to you.&#160;&#160;Before
      making an investment decision, you should read carefully the entire
      document, including the "Risk Factors" section and the information
      incorporated by reference.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Key
      Technology, Inc.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Key
      Technology, Inc., headquartered in Walla Walla, Washington, is a worldwide
      leader in the design and manufacture of process automation systems for the
      food processing and industrial markets. The Company&#8217;s products integrate
      electro-optical inspection and sorting, specialized conveying and product
      preparation equipment, which allow processors to improve quality, increase
      yield and reduce cost. Key has manufacturing facilities in Washington,
      Oregon and the Netherlands, and worldwide sales and service
      coverage.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Our
      principal executive office is located at 150 Avery Street, Walla Walla,
      Washington 99362.&#160;&#160;Our telephone number is (509)
      529-2161.&#160;&#160;Our website is located at <font style="DISPLAY: inline">http://www.key.net</font>.&#160;&#160;Information
      contained on our website or any other website does not constitute a part
      of this prospectus.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Where
      You Can Find More Information</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">We
      are subject to the information reporting requirements of the Securities
      Exchange Act of 1934, as amended (the "Exchange Act").&#160;&#160;In
      accordance with the Exchange Act, we file annual, quarterly and periodic
      reports, proxy statements and other information with the Securities and
      Exchange Commission (the "SEC" or the "Commission").&#160;&#160;You may
      inspect and copy any document we file at the SEC's public reference room
      at Room 1580, 100 F Street, N.E., Washington, D.C. 20549.&#160;&#160;You
      may also purchase copies of our filings by writing to the Public Reference
      Section of the SEC at Room 1580, 100 F Street, N.E., Washington, D.C.
      20549.&#160;&#160;Information on the operation of the Public Reference
      Room may be obtained by calling the SEC at 1-800-SEC-0330.&#160;&#160;Our
      SEC filings are also available on the SEC's website at <font style="DISPLAY: inline">http://www.sec.gov</font>.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Incorporation
      of Certain Documents by Reference</font></div>
              <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>This prospectus is part of a
      Registration Statement on Form S-8 that the Company filed with the SEC in
      accordance with the requirements of Part I of Form S-3 and General
      Instruction C of the instructions to Form S-8.&#160;&#160;The SEC permits
      this filing to "incorporate by reference" information that the Company
      previously filed with the SEC.&#160;&#160;This means the Company can
      disclose important information to you by referring you to other documents
      that it has filed with the SEC.&#160;&#160;The information that is
      incorporated by reference is considered part of this prospectus, except
      for any information furnished to but not filed with the
      SEC.&#160;&#160;Information that the Company files later will
      automatically update and may supersede this information.&#160;&#160;For
      further</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6</font></div>
              <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">&#160;
      </font>

                <hr style="COLOR: black" align="left" noshade size="2" width="100%">      </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <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">information
      about the Company and the securities being offered, you should refer to
      the Registration Statement and the following documents that are
      incorporated by reference:</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(a)&#160;&#160;The
      Company's Annual Report on Form 10-K for the fiscal year ended
      September&#160;30, 2007;</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(b)&#160;&#160;The
      Company's Quarterly Reports on Form 10-Q for the quarters ended
      December&#160;31, 2007, and March 31, 2008;</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(c)&#160;&#160;The
      Company's Current Reports on Form 8-K filed on November 15, 2007, November
      19, 2007, November 20, 2007, December 28, 2007, February 5, 2008, February
      7, 2008, March 26, 2008, April 28, 2008, May 1, 2008, and May 8, 2008;
      and</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;&#160;&#160;(d)&#160;
      The description of the Company's common stock contained in the Company's
      Registration Statement on Form 8-A filed with the Commission on May 24,
      1993 by which the Company's common stock was registered under Section 12
      of the Exchange Act, and the description of common stock incorporated
      therein by reference to the&#160; Registration Statement on Form S-1
      (Registration No. 333-6194) filed with the Commission on May 24, 1993, as
      amended by Amendment No. 1 filed with the Commission on July&#160;2, 1993
      and Amendment No. 2 filed with the Commission on July 13, 1993, and
      declared effective on July 15, 1993, under the caption "Description of
      Capital Stock" therein.</font></div>
              </div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%" style="BORDER-RIGHT: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>All documents filed by the
      Company subsequent to those listed above with the SEC pursuant to Sections
      13(a), 13(c), 14 or 15(d) of the Exchange Act (other than any report or
      portion thereof furnished to but not filed with the SEC), prior to the
      filing of a post-effective amendment which indicates that all securities
      offered hereby have been sold or which deregisters all securities then
      remaining unsold, shall be deemed to be incorporated by reference into
      this prospectus and to be a part hereof from the date of filing of such
      documents.&#160;&#160;Any statement contained in a document incorporated
      by reference herein shall be deemed to be modified or superseded for
      purposes of this prospectus to the extent that a statement contained
      herein or in any other subsequently filed document which also is or is
      deemed to be incorporated by reference herein modifies or supersedes such
      statement.&#160;&#160;Any statement so modified or superseded shall not be
      deemed, except as so modified or superseded, to constitute a part of this
      prospectus.</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>You may request a copy of all
      documents that are incorporated by reference into this prospectus by
      writing or calling us at the following address and
      number:&#160;&#160;Attention:&#160;&#160;Ronald L. Greeman, Secretary, Key
      Technology, Inc., 150 Avery Street, Walla Walla, Washington 99362,
      telephone (509) 529-2161.&#160;&#160;We will provide copies of all
      documents requested <font size="+0">without</font> charge (not including
      exhibits to those documents, unless the exhibits are specifically
      incorporated by reference into those documents or this
      prospectus).</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="center">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"><a href="#Table_of_Contents">Table of Contents</a></font></div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><a name="Forward">FORWARD-LOOKING INFORMATION</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <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">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;This
reoffer prospectus and the documents incorporated herein by reference contain
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange
Act, including without limitation, statements as to expectations, beliefs and
strategies regarding the future.&#160;&#160;Such forward-looking statements may
be included in, but are not limited to, press releases, oral statements made
with the approval of an authorized executive officer of the Company, or various
filings made by the Company with the SEC.&#160;&#160;These statements are only
predictions that are based, in part, on assumptions involving judgments about
future economic, competitive and market conditions and future business
decisions, all of which are difficult or impossible to predict accurately and
many of which are beyond our control.&#160;&#160;Actual events or results may
differ materially.&#160;&#160;In evaluating these statements, you should
specifically consider various facts, including the risks outlined in the "Risk
Factors" section.&#160;&#160;Although we believe that the expectations reflected
in the forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance or achievements.&#160;&#160;You are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made.&#160;&#160;We do not undertake
to update any of the forward-looking statements after the date of this
prospectus to conform these statements to actual results.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="RiskFactors">RISK FACTORS</a></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 34.2pt"></font>An investment in our securities is
speculative and involves a high degree of risk. You should carefully consider
the risk factors described below, together with all of the other information in
this prospectus, before making an investment decision. The trading price of our
securities could decline due to any of these risks and uncertainties, and you
may lose all or part of your investment.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adverse
economic conditions in the food processing industry, either globally or
regionally, may adversely affect the Company&#8217;s revenues.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>The markets the Company serves,
particularly the food processing industry, are experiencing variable economic
conditions. The U.S. and European markets in the food processing industry are
not growing and are experiencing consolidation. Additionally, varying consumer
demand, product supply, and plant capacity, most notably in the potato market,
could result in reduced or deferred capital equipment purchases for the
Company&#8217;s product lines. While the Company has reacted to these developments
with applications directed to the growing fresh vegetable and fruit industries
as well as the pharmaceutical and nutraceutical industries, loss of business,
particularly in the potato industry, would have a negative effect on the
Company&#8217;s sales and net earnings.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Competition
and advances in technology may adversely affect sales and prices.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 34.2pt"></font>The markets for the Company&#8217;s
products are highly competitive. Advances in technology may remove some barriers
to market entry, enabling additional competitors to enter the Company&#8217;s markets.
Such additional competition could force the Company to reduce prices to remain
competitive, and decrease the Company&#8217;s profits, having a material adverse
effect on the</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="center">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"><a href="#Table_of_Contents">Table of Contents</a></font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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">Company&#8217;s
business and financial condition. There can be no assurance that the Company
will be able to continue to compete effectively in the future.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company&#8217;s new products may not compete successfully in either existing or new
markets.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The future success and growth of the
Company is dependent upon its ability to develop, market, and sell products and
services in certain food processing markets as well as to introduce new products
into other existing and potential markets. There can be no assurance the Company
can successfully penetrate these potential markets or expand into new
international markets with its current or new products.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
limited availability and possible cost fluctuations of materials used in the
Company&#8217;s products could adversely affect the Company&#8217;s business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 34.2pt"></font>Certain of the components,
subassemblies and materials for the Company&#8217;s products are obtained from single
sources or a limited group of suppliers. Although the Company seeks to reduce
dependence on sole or limited source suppliers, the partial or complete loss of
certain of these sources could have an adverse effect on the Company&#8217;s results
of operations and customer relationships. In addition, certain basic materials,
such as stainless steel, are used extensively in the Company&#8217;s product
fabrication processes. Such basic materials may also be subject to worldwide
shortages or price fluctuations related to the supply of or demand for raw
materials, such as nickel, which are used in their production by the Company&#8217;s
suppliers. A significant increase in the price or decrease in the availability
of one or more of these components, subassemblies or basic materials could also
adversely affect the Company&#8217;s results of operations. The high price of
stainless steel worldwide in fiscal 2006 and 2007 resulted in higher component
costs and reduced margins on certain product lines.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
inability to protect its intellectual property, especially as the Company
expands geographically, may adversely affect the Company&#8217;s competitive
advantage.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Company&#8217;s competitive position may
be affected by its ability to protect its proprietary technology. The Company
has obtained certain patents and has filed a number of patent applications. The
Company also anticipates filing applications for protection of its future
products and technology. There can be no assurance that any such patents will
provide meaningful protection for the Company&#8217;s product innovations, or that the
issuance of a patent will give the Company any material advantage over its
competition in connection with any of its products. The Company may experience
additional intellectual property risks in international markets where it may
lack patent protection. The patent laws of other countries, such as China, may
differ from those of the U.S. as to the patentability of the Company&#8217;s products
and processes. Moreover, the degree of protection afforded by foreign patents
may be different from that of U.S. patents.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="center">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">9</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"><a href="#Table_of_Contents">Table of Contents</a></font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intellectual
property-related litigation expenses and other costs resulting from infringement
claims asserted against the Company by third parties may adversely affect the
Company&#8217;s results of operations and its customer relations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The technologies used by the Company
may infringe the patents or proprietary technology of others. In the past, the
Company has been required to initiate litigation to protect its patents. The
cost of enforcing the Company&#8217;s patent rights in lawsuits that it may bring
against infringers or of defending itself against infringement charges by other
patent holders or other third parties, including customers, may be high and
could have an adverse effect on the Company&#8217;s results of operations and its
customer relations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="Offering">THIS OFFERING</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>Certain selling shareholders may
offer and sell, from time to time, up to 54,697 shares of our common
stock.&#160;&#160;These shares of restricted stock were granted pursuant to the
Plan to the selling shareholders after the filing of the Prior Registration
Statements, but prior to the filing of the registration statement of which this
prospectus is a part.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 34.2pt"></font>Shares of common stock may be issued
under the Plan in amounts and to persons not presently known.&#160;&#160;Once
the amounts and names are known, such persons, their holdings of common stock
and certain other information may be included in a subsequent version of this
prospectus.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 34.2pt"></font>We will pay the expenses of preparing
this prospectus and the related registration statement.&#160;&#160;All brokerage
commissions and other expenses incurred in connection with sales by the selling
shareholders will be borne by such selling shareholders.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="UseOfProceeds">USE OF PROCEEDS</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>We will not receive any of the
proceeds from the sale of the shares covered by this prospectus.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="SellingShareholders">SELLING SHAREHOLDERS</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The table below sets forth the
following information regarding the beneficial ownership of common stock held by
the selling shareholders as of June 30, 2008:&#160;&#160;(i)&#160;the name and
position of each selling shareholder who may sell common stock pursuant to this
prospectus; (ii)&#160;the number of shares of common stock owned by each selling
shareholder as of the date above; (iii)&#160;the number of shares of common
stock offered under this prospectus, which includes shares of restricted stock
granted to the selling shareholders pursuant to the Plan that are no longer
subject to restrictions or that may be subject to restrictions that have not yet
lapsed; and (iv)&#160;the amount and percentage of common stock to be owned by
each such selling shareholder if such selling shareholder were to sell all of
the shares of common stock which may be offered pursuant to this
prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="center">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"><a href="#Table_of_Contents">Table of Contents</a></font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Name
      and Position of Selling Security Holder</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Number
      of Shares</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font size="+0">Owned Prior to Offering<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(1)</font></font></font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font size="+0">Number of Shares to be Offered<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(2)</font></font></font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font size="+0">Number of Shares Owned/Percentage After Offering<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(3)</font></font></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">Charles
      H. Stonecipher, Chairman</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17,308</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,727</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">15,581/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">David
      M. Camp, President and Chief Executive Officer, Director</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">45,114</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">21,602</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">23,512/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">John
      E. Pelo, Director</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">50,558</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,727</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">48,831/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">Michael
      L. Shannon, Director</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">157,308</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,727</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">155,581/2.76%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">Donald
      A. Washburn, Director</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">38,508</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,727</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">36,781/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">Richard
      Lawrence, Director</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,389</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,727</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">662/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">John
      C. Boutsikaris, Senior Vice President of Sales and
    Marketing</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">21,415</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4,147</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17,268/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">James
      R. Brausen, Corporate Controller</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4,626</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,750</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,876/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">John
      J. Ehren, Chief Financial Officer and Senior Vice
President</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">7,217</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">7,217</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">Dennis
      T. Hopwood, Vice President of Human Resources</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3,893</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,643</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,250/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">Craig
      T.J. Miller, Senior Vice President of Aftermarket and
    SYMETIX</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">24,065</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,663</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">21,402/*</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">James
      D. Ruff, Vice President of Research and Development</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">8,825</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,447</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6,378/*</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <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">Saeed
      Tasbihgou, Managing Director of Key Technology B.V.</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,593</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,593</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0/*</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="33%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Total</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">383,819</font></div>
            </td>
            <td valign="top" width="14%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">54,697</font></div>
            </td>
            <td valign="top" width="18%" style="BORDER-RIGHT: black 1px solid; BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid; BORDER-BOTTOM: black 1px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">N/A</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">* Less
than 1%</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(1)</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      purposes of this table, the number of shares of common stock includes all
      shares of common stock that may be acquired upon the exercise of options
      or warrants that are exercisable within 60 days of the date of this
      prospectus.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(2)</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      purposes of this table, the number of shares of common stock offered
      includes the number of shares of restricted stock granted to the security
      holder under the Plan, regardless of whether the restrictions on such
      shares of restricted stock have lapsed.&#160;&#160;The number of shares of
      common stock offered does not include shares of common stock which may be
      acquired upon the exercise of options or shares of restricted stock that
      may be granted under the Plan in the future to the selling shareholders,
      which information is not currently
known.</font></div>
            </td>
          </tr>
      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="center">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"><a href="#Table_of_Contents">Table of Contents</a></font></div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(3)</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Applicable
      percentage of ownership is based on 5,630,719 shares of common stock
      outstanding on June 30, 2008.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="Distribution">PLAN OF DISTRIBUTION</a></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>The selling shareholders have not
advised us of any specific plan for distribution of the shares offered hereby,
but it is anticipated that the shares will be sold from time-to-time by the
selling shareholders or by their pledgees, donees, transferees or other
successors in interest.&#160;&#160;Such sales may be made over-the-counter or on
the Nasdaq Global Market at prices and at terms then prevailing or at prices
related to the then current market price, or in negotiated
transactions.&#160;&#160;In addition, any securities covered by this prospectus
which qualify for sale pursuant to Rule&#160;144, promulgated under the
Securities Act, may be sold under Rule&#160;144 rather than pursuant to this
prospectus.&#160;&#160;The shares may be sold by one or more of the
following:&#160;&#160;(i)&#160;a block trade in which the broker or dealer so
engaged will attempt to sell the shares as agent but may position and resell a
portion of the block as principal to facilitate the transaction;
(ii)&#160;purchases by a broker or dealer for its account pursuant to this
prospectus; or (iii)&#160;ordinary brokerage transactions and transactions in
which the broker solicits purchases.&#160;&#160;In effecting sales, brokers or
dealers engaged by the selling shareholders may arrange for other brokers or
dealers to participate.&#160;&#160;Brokers or dealers will receive commissions
or discounts from the selling shareholders in amounts to be negotiated
immediately prior to the sale.&#160;&#160;Such brokers or dealers may be deemed
to be "underwriters" within the meaning of the Securities Act in connection with
such sales, and any commission received by them and any profit realized by them
on the resales of shares as principals may be deemed underwriting compensation
under the Securities Act.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="Legal">LEGAL MATTERS</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>The validity of the securities
offered by this prospectus will be passed upon for the Company by Tonkon Torp
LLP, Portland, Oregon.&#160;&#160;A member of Tonkon Torp LLP is the<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; BACKGROUND-COLOR: #ffffff">&#160;</font>Secretary
of the Company and owns 17,500 shares of the Company's common
stock.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="Experts">EXPERTS</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>The consolidated financial
statements incorporated by reference into this prospectus and elsewhere in the
Registration Statement of which this prospectus is a part have been incorporated
by reference from the Company's Annual Report on Form 10-K, filed with the SEC
on December 14, 2007, in reliance upon the reports of Grant Thornton LLP,
independent registered public accountants, upon the authority of said firm as
experts in accounting and auditing in giving said reports.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="Disclosure">DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR
SECURITIES ACT LIABILITIES</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>Insofar as indemnification for
liabilities arising under the Securities Act may be permitted to directors,
officers and controlling persons of the Company pursuant to the provisions
described in Part II, Item 6 of the registration statement of which this reoffer
prospectus forms a part, or otherwise, the Company has been advised that in the
opinion of the</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="center">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">12</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"><a href="#Table_of_Contents">Table of Contents</a></font></div>
      </div>
    </div><br>
    <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">SEC such
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[This
space is intentionally left blank.]</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">13</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PART
II</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
3.&#160;&#160;Incorporation of Documents by Reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
contents of the Prior Registration Statements are incorporated herein by
reference.&#160;&#160;All documents the Company has filed with the SEC pursuant
to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the
filing of the Prior Registration Statements, but prior to the filing of a
post-effective amendment which indicates that all securities offered hereby have
been sold or which deregisters all securities then remaining unsold, shall be
deemed to be incorporated by reference into this Registration Statement and to
be a part hereof from the date of filing of such documents.&#160;&#160;Nothing
in this Registration Statement shall be deemed to incorporate by reference
information furnished to but not filed with the Commission.&#160;&#160;Any
statement contained in a document incorporated by reference herein shall be
deemed to be modified or superseded for purposes of this Registration Statement
to the extent that a statement contained herein or in any other subsequently
filed document which also is or is deemed to be incorporated by reference herein
modifies or supersedes such statement.&#160;&#160;Any statement so modified or
superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Registration Statement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
5.&#160;&#160;Interests of Named Experts and Counsel.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>A member of Tonkon Torp LLP, legal
counsel to the Company, is the Secretary of the Company and owns 17,500 shares
of the Company's common stock.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
6.&#160;&#160;Indemnification of Directors and Officers</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>The Oregon Business Corporation Act
(the "Act") authorizes a corporation to indemnify an officer or director made
party to a proceeding because the officer or director is or was an officer or
director against liability (including amounts paid in settlement) incurred in
the proceeding and against expenses with respect to the proceeding (including
attorney's fees) if:&#160;&#160;(a) the conduct of the officer or director was
in good faith, (b) the officer or director reasonably believed that his conduct
was in the best interests of the corporation or at least not opposed to its best
interests, (c)&#160;in the case of a criminal proceeding, the officer or
director had no reasonable cause to believe his conduct was unlawful, (d) in the
case of any proceeding by or in the right of the corporation, unless a court
otherwise determines, if such officer or director shall not have been adjudged
liable, and (e) in connection with any other proceeding charging improper
personal benefit to the director or officer, unless a court otherwise
determines, in which the director or officer was not adjudged liable on the
basis that personal benefit was improperly received by the director or
officer.&#160;&#160;The Company's Restated Articles of Incorporation, as
amended, and Amended and Restated Bylaws allow the Company to indemnify officers
and directors to the fullest extent permissible by law.</font></div>
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articles of incorporation of a corporation may provide that no director shall be
personally liable to a corporation or its shareholders for monetary damages for
conduct as a director, except that such provision does not eliminate the
liability of a director (i)&#160;for any breach of the director's duty of
loyalty to the corporation or its shareholders,</font></div><br>
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</font></div>
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</font></div>
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acts or omissions not in good faith or which involve intentional misconduct or a
knowing violation of the law, (iii) for any unlawful distribution as defined
under the Act, or (iv) for any transaction from which the director derived an
improper personal benefit.&#160;&#160;The Company's Restated Articles of
Incorporation, as amended, and Amended and Restated Bylaws provide that, to the
fullest extent permitted by law, no director shall be personally liable to the
Company or its shareholders for monetary damages for conduct as a
director.</font></div>
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indemnification agreements with each director and certain officers that
indemnify them to the full extent authorized or permitted by the
Act.</font></div>
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and officers' liability insurance.&#160;&#160;Subject to conditions, limitations
and exclusions in the policy, the insurance covers amounts required to be paid
for a claim or claims made against directors and officers for any act, error,
omission, misstatement, misleading statement or breach of duty by directors and
officers in their capacity as directors and officers of the
Company.</font></div>
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8.&#160;&#160;Exhibits.</font></div>
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preceding the exhibits is incorporated herein by reference.</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
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space is intentionally left blank.]</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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</font></div>
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</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Act of 1933, the registrant certifies that
it has reasonable grounds to believe that it meets all of the requirements for
filing on Form&#160;S-8 and has duly caused this Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Walla Walla, State of Washington on July 24, 2008.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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            <td width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;KEY
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          </tr>
          <tr>
            <td width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
          </tr>
          <tr>
            <td width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
          </tr>
          <tr>
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            <td width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;By<font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;/s/ David
      M. Camp</font></font></td>
          </tr>
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            <td width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;David M.
      Camp</font></td>
          </tr>
          <tr>
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            <td width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;President and
      Chief Executive Officer</font></td>
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    </div>
    <div>&#160;</div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">POWER
OF ATTORNEY</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <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"><font id="TAB1" style="MARGIN-LEFT: 37.05pt"></font>KNOW ALL MEN BY THESE PRESENTS that
each person whose signature appears below hereby constitutes and appoints David
M. Camp and John J. Ehren, and each of them, his true and lawful
attorneys-in-fact and agents, with full power of substitution, for him in any
and all capacities, to sign any and all registration statements on Form S-8 for
the registration of the shares of common stock, no par value, of the Company to
be issued pursuant to the 2003 Restated Employees' Stock Incentive Plan, and for
the registration of the shares of common stock acquired by certain officers and
directors of the Company pursuant to the award of restricted stock or the
exercise of stock options, and to sign any and all amendments or post-effective
amendments to such registration statement, including amendments or supplements
to the prospectus contained in any such registration statement and the addition
or amendment of exhibits and other documents in connection therewith, and to
file the same, with all exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto such
attorney and agent full power and authority to do any and all acts and things
necessary or advisable in connection with such matters, and hereby ratifying and
confirming all that the attorney and agent, or his substitute or substitutes,
may lawfully do or cause to be done by virtue hereof.</font></div><br>
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</font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">16</font></div>
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</font></div>
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to the requirements of the Securities Act of 1933, this registration statement
has been signed by the following persons in the capacities and on the date
indicated.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="27%">
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            <td valign="top" width="22%">
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            </td>
          </tr>
      </table>
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    <div>&#160;</div>
    <div align="left">
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          <tr bgcolor="#cceeff">
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      Stonecipher</font></font></div>
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            </td>
            <td align="left" valign="top" width="31%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <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">Chairman</font></div>
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              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">July
      24, 2008</font></div>
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          </tr>
      </table>
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    <div>&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr bgcolor="#cceeff">
            <td align="left" valign="top" width="27%">
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              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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            </td>
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              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">July
      24, 2008</font></div>
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          </tr>
      </table>
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    <div>&#160;</div>
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            </td>
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            </td>
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              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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    <div>&#160;</div>
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            </td>
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              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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            </td>
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              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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    <div>&#160;</div>
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            </td>
            <td align="left" valign="top" width="31%">
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      24, 2008</font></div>
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          </tr>
      </table>
    </div>
    <div>&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr bgcolor="#cceeff">
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            </td>
            <td align="left" valign="top" width="31%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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            </td>
          </tr>
      </table>
    </div>
    <div>&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr bgcolor="#cceeff">
            <td align="left" valign="top" width="27%">
              <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"><font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/ John E.
      Pelo</font></font></div>
              <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">John
      E. Pelo</font></div>
            </td>
            <td align="left" valign="top" width="31%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <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">Director</font></div>
            </td>
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              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">July
      24, 2008</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr bgcolor="#cceeff">
            <td align="left" valign="top" width="27%">
              <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"><font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/ Richard
      Lawrence</font></font></div>
              <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">Richard
      Lawrence</font></div>
            </td>
            <td align="left" valign="top" width="31%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <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">Director</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">July
      24, 2008</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
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    </div><br>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INDEX TO
EXHIBITS</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 923px">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit
      Number</font></font></div>
              </td>
              <td width="954">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit</font></font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Restated
      Articles of Incorporation (filed as Exhibit 3.1 to the Form 10-Q filed
      with the Securities and Exchange Commission on May 9, 2008 and
      incorporated herein by reference).</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
      and Restated Bylaws, dated November 14, 2007 (filed as Exhibit 3.1(ii) to
      the Current Report on Form 8-K filed with the Securities and Exchange
      Commission on November 20, 2007 and incorporated herein by
      reference).</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.3</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
      Amended and Restated Rights Agreement, dated as of November 13, 2007,
      between Key Technology, Inc. and American Stock Transfer and Trust Company
      (filed as Exhibit 10.1 to the Current Report on Form 8-K filed with the
      Securities and Exchange Commission on November 19, 2007 and incorporated
      herein by reference).</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.4</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003
      Restated Employees' Stock Incentive Plan (incorporated by reference to
      Appendix A to the Proxy Statement for the 2008 Annual Meeting of
      Shareholders filed with the Securities and Exchange Commission on January
      3, 2008).</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1*</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Opinion
      of Tonkon Torp LLP</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1*</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
      of Grant Thornton LLP, Independent
Auditors</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2*</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
      of Tonkon Torp LLP (included in Exhibit
5.1)</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24.1</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
      of Attorney (included on the signature pages of this registration
      statement)</font></div>
              </td>
            </tr>
        </table>
      </div><br></div>
    <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">*Filed
herewith</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center">18<br></div><br>
    <div>
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body.htm
As filed
with the Securities and Exchange Commission on July 24, 2008
Registration No.
333-______
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
________
FORM
S-8
REG
ISTR
ATION STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
Key
Technology, Inc.
(Exact
name of registrant as specified in its charter)
Oregon
93-0822509
(State
      or other jurisdiction of incorporation or organization)
(IRS
      Employer Identification No.)
150
      Avery Street
Walla
      Walla, Washington
99362
(Address
      of principal executive offices)
(Zip
      Code)
2003 Restated Employees'
Stock Incentive Plan
(Full
title of the plan)
David M.
Camp
150
Avery Street
Walla
Walla, Washington  99362
(509)
529-2161
(Name,
address and telephone number of agent for service)
Copies
to:
Thomas P.
Palmer
Tonkon
Torp LLP
1600
Pioneer Tower
888 S.W.
Fifth Avenue
Portland,
Oregon  97204
(503)
221-1440
CALCULATION
OF REGISTRATION FEE
Title
      of securities to be registered
Amount
      to be registered
(1)
Proposed
      maximum offering price per share
Proposed
      maximum aggregate offering price
Amount
      of
registration
      fee
Common
      Stock, no par value
200,000 shares
(2)
$32.31
(3)
$6,462,000.00
$253.96
(1)
There
are also registered an undetermined number of additional shares of common stock
that may become available for purchase in accordance with the provisions of the
Key Technology 2003 Restated Employees' Stock Incentive Plan (the "Plan") in the
event of any future change in the outstanding shares of common stock as a result
of a stock dividend, stock split or similar adjustment.
(2)
This
filing registers an additional 200,000 shares of common stock of Key Technology,
Inc. (the "Company") reserved for issuance under the Plan.
(3)
The
offering price of $32.31 per share was the average of the high and low prices of
the Company's common stock on July 21, 2008 on the Nasdaq Global
Market.  The aggregate offering price is estimated solely for the
purposes of calculating the registration fee pursuant to Rule 457(h)(1) and Rule
457(c).
The reoffer prospectus
contained in this Registration Statement is a combined prospectus pursuant to
Rule 429(a) under the Securities Act of 1933 and relates to unsold shares, if
any, that may be offered or sold by the selling shareholders named therein that
were registered on registration statements filed on November 17, 2000
(Registration No. 333-50130) and September 23, 2005 (Registration No.
333-128512), each as amended by Post-Effective Amendment No. 1 to Form S-8
Registration Statements filed on September 11, 2007 (Registration No.
333-50130).
2
Explanatory
Note
Key Technology, Inc. (the "Company")
has prepared this Registration Statement (the "Registration Statement") in
accordance with the requirements of Form S-8 under the Securities Act of 1933,
as amended (the "Securities Act"), to register an additional 200,000 shares of
common stock of the Company reserved for issuance under the Company's 2003
Restated Employees' Stock Incentive Plan (the "Plan").  The additional
shares to be registered on this Registration Statement are of the same class as
those securities covered by the Company's previously-filed registration
statements on Form S-8 filed on November 17, 2000 (Registration No. 333-50130)
and September 23, 2005 (Registration No. 333-128512), each as amended by
Post-Effective Amendment No. 1 to Form S-8 Registration Statements filed on
September 11, 2007 (Registration No. 333-50130) (collectively, the "Prior
Registration Statements").  Pursuant to General Instruction E to Form
S-8, this Registration Statement incorporates by reference the contents of the
Prior Registration Statements, including reports under the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), that the Company has filed since
the date of the Prior Registration Statements.  Pursuant to Rule
429(b) under the Securities Act, this Registration Statement will also
constitute Post-Effective Amendment No. 2 to Registration Statements Nos.
333-50130 and 333-128512.
This Registration Statement includes a
reoffer prospectus prepared in accordance with General Instruction C of Form S-8
and in accordance with the requirements of Part I of
Form
S-3.  The reoffer prospectus included in this Registration Statement
is being filed herewith pursuant to General Instruction E of Form
S-8.  Pursuant to Rule 429(b) under the Securities Act, the reoffer
prospectus is a combined prospectus which also relates to any unsold shares of
common stock of the Company issued to the selling shareholders under the Plan
and registered under the Prior Registration Statements.  The reoffer
prospectus may be used for reoffers of shares of restricted common stock defined
as "control securities" and "restricted securities" under General Instruction C
to Form S-8 (as that term is defined in Rule 144(a)(3) of the General Rules and
Regulations under the Securities Act) pursuant to grants made under the
Plan.
3
REOFFER
PROSPECTUS
KEY
TECHNOLOGY, INC.
54,697
Shares of Common Stock
This reoffer prospectus (the
"prospectus" or "reoffer prospectus") is being used in connection with the
offering from time-to-time by certain directors and officers of Key Technology,
Inc. (the "selling shareholders") or their successors in interest of shares of
restricted common stock (the "shares" or "common stock") of Key Technology, Inc.
issued to or that may be issued to the selling shareholders pursuant to Key
Technology's 2003 Restated Employees' Stock Incentive Plan (the
"Plan").  The Plan was originally known as the 1989 Employees' Stock
Option Plan.  Its name was changed in 1996 to the 1996 Employees'
Stock Option Plan, and in 2004 its name was changed to the 2003 Restated
Employees' Stock Incentive Plan.  Unless the context clearly indicates
otherwise, the terms "we," "us," "our," "Key" or the "Company" refer to Key
Technology, Inc. and its operating subsidiaries.
Shares of
      common stock offered
by
      selling shareholders
54,697
Offering
      Price
The
shares
      will be sold from time-to-time by the selling shareholders or by their
      pledgees, donees, transferees or other successors in
      interest.  Such sales may be made on the Nasdaq Global Market at
      prices and at terms then prevailing or at prices related to the then
      current market price, or in negotiated transactions.  On July
      21, 2008, the closing sales price of the Company's common stock on the
      Nasdaq Global Market was $32.38 per
  share.
Nasdaq Global
      Market Symbol
KTEC
The common stock involves a high degree
of risk.  See "Risk Factors" beginning on page 5.
Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved these
securities or passed upon the adequacy or accuracy of this
prospectus.  Any representation to the contrary is a criminal
offense.
The date
of this prospectus is July 24, 2008.
4
TABLE OF CONTENTS
PROSPECTUS SUMMARY
6
FORWARD-LOOKING INFORMATION
8
RISK FACTORS
8
THIS OFFERING
10
USE OF PROCEEDS
10
SELLING SHAREHOLDERS
10
PLAN OF DISTRIBUTION
12
LEGAL MATTERS
12
EXPERTS
12
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION
      FOR SECURITIES ACT LIABILITIES
12
This prospectus incorporates by
reference important business and financial information about us that is not
included in or delivered with this prospectus.  You may request a copy
of all documents that are incorporated by reference into this prospectus by
writing or calling Key at the following
address:  Attention:  Ronald L. Greenman, Secretary, Key
Technology, Inc., 150 Avery Street, Walla Walla, Washington 99362, telephone
(509) 529-2161.  Copies of all documents requested will be provided
without charge (not including the exhibits to those documents, unless the
exhibits are specifically incorporated by reference into those documents or this
prospectus).
5
Table of Contents
PROSPECTUS SUMMARY
This
      summary highlights selected information from this prospectus and may not
      contain all the information that is important to you.  Before
      making an investment decision, you should read carefully the entire
      document, including the "Risk Factors" section and the information
      incorporated by reference.
Key
      Technology, Inc.
Key
      Technology, Inc., headquartered in Walla Walla, Washington, is a worldwide
      leader in the design and manufacture of process automation systems for the
      food processing and industrial markets. The Company's products integrate
      electro-optical inspection and sorting, specialized conveying and product
      preparation equipment, which allow processors to improve quality, increase
      yield and reduce cost. Key has manufacturing facilities in Washington,
      Oregon and the Netherlands, and worldwide sales and service
      coverage.
Our
      principal executive office is located at 150 Avery Street, Walla Walla,
      Washington 99362.  Our telephone number is (509)
      529-2161.  Our website is located at
http://www.key.net
.  Information
      contained on our website or any other website does not constitute a part
      of this prospectus.
Where
      You Can Find More Information
We
      are subject to the information reporting requirements of the Securities
      Exchange Act of 1934, as amended (the "Exchange Act").  In
      accordance with the Exchange Act, we file annual, quarterly and periodic
      reports, proxy statements and other information with the Securities and
      Exchange Commission (the "SEC" or the "Commission").  You may
      inspect and copy any document we file at the SEC's public reference room
      at Room 1580, 100 F Street, N.E., Washington, D.C. 20549.  You
      may also purchase copies of our filings by writing to the Public Reference
      Section of the SEC at Room 1580, 100 F Street, N.E., Washington, D.C.
      20549.  Information on the operation of the Public Reference
      Room may be obtained by calling the SEC at 1-800-SEC-0330.  Our
      SEC filings are also available on the SEC's website at
http://www.sec.gov
.
Incorporation
      of Certain Documents by Reference
This prospectus is part of a
      Registration Statement on Form S-8 that the Company filed with the SEC in
      accordance with the requirements of Part I of Form S-3 and General
      Instruction C of the instructions to Form S-8.  The SEC permits
      this filing to "incorporate by reference" information that the Company
      previously filed with the SEC.  This means the Company can
      disclose important information to you by referring you to other documents
      that it has filed with the SEC.  The information that is
      incorporated by reference is considered part of this prospectus, except
      for any information furnished to but not filed with the
      SEC.  Information that the Company files later will
      automatically update and may supersede this information.  For
      further
6
information
      about the Company and the securities being offered, you should refer to
      the Registration Statement and the following documents that are
      incorporated by reference:
(a)  The
      Company's Annual Report on Form 10-K for the fiscal year ended
      September 30, 2007;
(b)  The
      Company's Quarterly Reports on Form 10-Q for the quarters ended
      December 31, 2007, and March 31, 2008;
(c)  The
      Company's Current Reports on Form 8-K filed on November 15, 2007, November
      19, 2007, November 20, 2007, December 28, 2007, February 5, 2008, February
      7, 2008, March 26, 2008, April 28, 2008, May 1, 2008, and May 8, 2008;
      and
(d) 
      The description of the Company's common stock contained in the Company's
      Registration Statement on Form 8-A filed with the Commission on May 24,
      1993 by which the Company's common stock was registered under Section 12
      of the Exchange Act, and the description of common stock incorporated
      therein by reference to the  Registration Statement on Form S-1
      (Registration No. 333-6194) filed with the Commission on May 24, 1993, as
      amended by Amendment No. 1 filed with the Commission on July 2, 1993
      and Amendment No. 2 filed with the Commission on July 13, 1993, and
      declared effective on July 15, 1993, under the caption "Description of
      Capital Stock" therein.
All documents filed by the
      Company subsequent to those listed above with the SEC pursuant to Sections
      13(a), 13(c), 14 or 15(d) of the Exchange Act (other than any report or
      portion thereof furnished to but not filed with the SEC), prior to the
      filing of a post-effective amendment which indicates that all securities
      offered hereby have been sold or which deregisters all securities then
      remaining unsold, shall be deemed to be incorporated by reference into
      this prospectus and to be a part hereof from the date of filing of such
      documents.  Any statement contained in a document incorporated
      by reference herein shall be deemed to be modified or superseded for
      purposes of this prospectus to the extent that a statement contained
      herein or in any other subsequently filed document which also is or is
      deemed to be incorporated by reference herein modifies or supersedes such
      statement.  Any statement so modified or superseded shall not be
      deemed, except as so modified or superseded, to constitute a part of this
      prospectus.
You may request a copy of all
      documents that are incorporated by reference into this prospectus by
      writing or calling us at the following address and
      number:  Attention:  Ronald L. Greeman, Secretary, Key
      Technology, Inc., 150 Avery Street, Walla Walla, Washington 99362,
      telephone (509) 529-2161.  We will provide copies of all
      documents requested
without
charge (not including
      exhibits to those documents, unless the exhibits are specifically
      incorporated by reference into those documents or this
      prospectus).
7
Table of Contents
FORWARD-LOOKING INFORMATION
This
reoffer prospectus and the documents incorporated herein by reference contain
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange
Act, including without limitation, statements as to expectations, beliefs and
strategies regarding the future.  Such forward-looking statements may
be included in, but are not limited to, press releases, oral statements made
with the approval of an authorized executive officer of the Company, or various
filings made by the Company with the SEC.  These statements are only
predictions that are based, in part, on assumptions involving judgments about
future economic, competitive and market conditions and future business
decisions, all of which are difficult or impossible to predict accurately and
many of which are beyond our control.  Actual events or results may
differ materially.  In evaluating these statements, you should
specifically consider various facts, including the risks outlined in the "Risk
Factors" section.  Although we believe that the expectations reflected
in the forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance or achievements.  You are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made.  We do not undertake
to update any of the forward-looking statements after the date of this
prospectus to conform these statements to actual results.
RISK FACTORS
An investment in our securities is
speculative and involves a high degree of risk. You should carefully consider
the risk factors described below, together with all of the other information in
this prospectus, before making an investment decision. The trading price of our
securities could decline due to any of these risks and uncertainties, and you
may lose all or part of your investment.
Adverse
economic conditions in the food processing industry, either globally or
regionally, may adversely affect the Company's revenues.
The markets the Company serves,
particularly the food processing industry, are experiencing variable economic
conditions. The U.S. and European markets in the food processing industry are
not growing and are experiencing consolidation. Additionally, varying consumer
demand, product supply, and plant capacity, most notably in the potato market,
could result in reduced or deferred capital equipment purchases for the
Company's product lines. While the Company has reacted to these developments
with applications directed to the growing fresh vegetable and fruit industries
as well as the pharmaceutical and nutraceutical industries, loss of business,
particularly in the potato industry, would have a negative effect on the
Company's sales and net earnings.
Competition
and advances in technology may adversely affect sales and prices.
The markets for the Company's
products are highly competitive. Advances in technology may remove some barriers
to market entry, enabling additional competitors to enter the Company's markets.
Such additional competition could force the Company to reduce prices to remain
competitive, and decrease the Company's profits, having a material adverse
effect on the
8
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Company's
business and financial condition. There can be no assurance that the Company
will be able to continue to compete effectively in the future.
The
Company's new products may not compete successfully in either existing or new
markets.
The future success and growth of the
Company is dependent upon its ability to develop, market, and sell products and
services in certain food processing markets as well as to introduce new products
into other existing and potential markets. There can be no assurance the Company
can successfully penetrate these potential markets or expand into new
international markets with its current or new products.
The
limited availability and possible cost fluctuations of materials used in the
Company's products could adversely affect the Company's business.
Certain of the components,
subassemblies and materials for the Company's products are obtained from single
sources or a limited group of suppliers. Although the Company seeks to reduce
dependence on sole or limited source suppliers, the partial or complete loss of
certain of these sources could have an adverse effect on the Company's results
of operations and customer relationships. In addition, certain basic materials,
such as stainless steel, are used extensively in the Company's product
fabrication processes. Such basic materials may also be subject to worldwide
shortages or price fluctuations related to the supply of or demand for raw
materials, such as nickel, which are used in their production by the Company's
suppliers. A significant increase in the price or decrease in the availability
of one or more of these components, subassemblies or basic materials could also
adversely affect the Company's results of operations. The high price of
stainless steel worldwide in fiscal 2006 and 2007 resulted in higher component
costs and reduced margins on certain product lines.
The
inability to protect its intellectual property, especially as the Company
expands geographically, may adversely affect the Company's competitive
advantage.
The Company's competitive position may
be affected by its ability to protect its proprietary technology. The Company
has obtained certain patents and has filed a number of patent applications. The
Company also anticipates filing applications for protection of its future
products and technology. There can be no assurance that any such patents will
provide meaningful protection for the Company's product innovations, or that the
issuance of a patent will give the Company any material advantage over its
competition in connection with any of its products. The Company may experience
additional intellectual property risks in international markets where it may
lack patent protection. The patent laws of other countries, such as China, may
differ from those of the U.S. as to the patentability of the Company's products
and processes. Moreover, the degree of protection afforded by foreign patents
may be different from that of U.S. patents.
9
Table of Contents
Intellectual
property-related litigation expenses and other costs resulting from infringement
claims asserted against the Company by third parties may adversely affect the
Company's results of operations and its customer relations.
The technologies used by the Company
may infringe the patents or proprietary technology of others. In the past, the
Company has been required to initiate litigation to protect its patents. The
cost of enforcing the Company's patent rights in lawsuits that it may bring
against infringers or of defending itself against infringement charges by other
patent holders or other third parties, including customers, may be high and
could have an adverse effect on the Company's results of operations and its
customer relations.
THIS OFFERING
Certain selling shareholders may
offer and sell, from time to time, up to 54,697 shares of our common
stock.  These shares of restricted stock were granted pursuant to the
Plan to the selling shareholders after the filing of the Prior Registration
Statements, but prior to the filing of the registration statement of which this
prospectus is a part.
Shares of common stock may be issued
under the Plan in amounts and to persons not presently known.  Once
the amounts and names are known, such persons, their holdings of common stock
and certain other information may be included in a subsequent version of this
prospectus.
We will pay the expenses of preparing
this prospectus and the related registration statement.  All brokerage
commissions and other expenses incurred in connection with sales by the selling
shareholders will be borne by such selling shareholders.
USE OF PROCEEDS
We will not receive any of the
proceeds from the sale of the shares covered by this prospectus.
SELLING SHAREHOLDERS
The table below sets forth the
following information regarding the beneficial ownership of common stock held by
the selling shareholders as of June 30, 2008:  (i) the name and
position of each selling shareholder who may sell common stock pursuant to this
prospectus; (ii) the number of shares of common stock owned by each selling
shareholder as of the date above; (iii) the number of shares of common
stock offered under this prospectus, which includes shares of restricted stock
granted to the selling shareholders pursuant to the Plan that are no longer
subject to restrictions or that may be subject to restrictions that have not yet
lapsed; and (iv) the amount and percentage of common stock to be owned by
each such selling shareholder if such selling shareholder were to sell all of
the shares of common stock which may be offered pursuant to this
prospectus.
10
Table of Contents
Name
      and Position of Selling Security Holder
Number
      of Shares
Owned Prior to Offering
(1)
Number of Shares to be Offered
(2)
Number of Shares Owned/Percentage After Offering
(3)
Charles
      H. Stonecipher, Chairman
17,308
1,727
15,581/*
David
      M. Camp, President and Chief Executive Officer, Director
45,114
21,602
23,512/*
John
      E. Pelo, Director
50,558
1,727
48,831/*
Michael
      L. Shannon, Director
157,308
1,727
155,581/2.76%
Donald
      A. Washburn, Director
38,508
1,727
36,781/*
Richard
      Lawrence, Director
2,389
1,727
662/*
John
      C. Boutsikaris, Senior Vice President of Sales and
    Marketing
21,415
4,147
17,268/*
James
      R. Brausen, Corporate Controller
4,626
2,750
1,876/*
John
      J. Ehren, Chief Financial Officer and Senior Vice
President
7,217
7,217
0/*
Dennis
      T. Hopwood, Vice President of Human Resources
3,893
2,643
1,250/*
Craig
      T.J. Miller, Senior Vice President of Aftermarket and
    SYMETIX
24,065
2,663
21,402/*
James
      D. Ruff, Vice President of Research and Development
8,825
2,447
6,378/*
Saeed
      Tasbihgou, Managing Director of Key Technology B.V.
2,593
2,593
0/*
Total
383,819
54,697
N/A
* Less
than 1%
(1)
For
      purposes of this table, the number of shares of common stock includes all
      shares of common stock that may be acquired upon the exercise of options
      or warrants that are exercisable within 60 days of the date of this
      prospectus.
(2)
For
      purposes of this table, the number of shares of common stock offered
      includes the number of shares of restricted stock granted to the security
      holder under the Plan, regardless of whether the restrictions on such
      shares of restricted stock have lapsed.  The number of shares of
      common stock offered does not include shares of common stock which may be
      acquired upon the exercise of options or shares of restricted stock that
      may be granted under the Plan in the future to the selling shareholders,
      which information is not currently
known.
11
Table of Contents
(3)
Applicable
      percentage of ownership is based on 5,630,719 shares of common stock
      outstanding on June 30, 2008.
PLAN OF DISTRIBUTION
The selling shareholders have not
advised us of any specific plan for distribution of the shares offered hereby,
but it is anticipated that the shares will be sold from time-to-time by the
selling shareholders or by their pledgees, donees, transferees or other
successors in interest.  Such sales may be made over-the-counter or on
the Nasdaq Global Market at prices and at terms then prevailing or at prices
related to the then current market price, or in negotiated
transactions.  In addition, any securities covered by this prospectus
which qualify for sale pursuant to Rule 144, promulgated under the
Securities Act, may be sold under Rule 144 rather than pursuant to this
prospectus.  The shares may be sold by one or more of the
following:  (i) a block trade in which the broker or dealer so
engaged will attempt to sell the shares as agent but may position and resell a
portion of the block as principal to facilitate the transaction;
(ii) purchases by a broker or dealer for its account pursuant to this
prospectus; or (iii) ordinary brokerage transactions and transactions in
which the broker solicits purchases.  In effecting sales, brokers or
dealers engaged by the selling shareholders may arrange for other brokers or
dealers to participate.  Brokers or dealers will receive commissions
or discounts from the selling shareholders in amounts to be negotiated
immediately prior to the sale.  Such brokers or dealers may be deemed
to be "underwriters" within the meaning of the Securities Act in connection with
such sales, and any commission received by them and any profit realized by them
on the resales of shares as principals may be deemed underwriting compensation
under the Securities Act.
LEGAL MATTERS
The validity of the securities
offered by this prospectus will be passed upon for the Company by Tonkon Torp
LLP, Portland, Oregon.  A member of Tonkon Torp LLP is the
Secretary
of the Company and owns 17,500 shares of the Company's common
stock.
EXPERTS
The consolidated financial
statements incorporated by reference into this prospectus and elsewhere in the
Registration Statement of which this prospectus is a part have been incorporated
by reference from the Company's Annual Report on Form 10-K, filed with the SEC
on December 14, 2007, in reliance upon the reports of Grant Thornton LLP,
independent registered public accountants, upon the authority of said firm as
experts in accounting and auditing in giving said reports.
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR
SECURITIES ACT LIABILITIES
Insofar as indemnification for
liabilities arising under the Securities Act may be permitted to directors,
officers and controlling persons of the Company pursuant to the provisions
described in Part II, Item 6 of the registration statement of which this reoffer
prospectus forms a part, or otherwise, the Company has been advised that in the
opinion of the
12
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SEC such
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable.
[This
space is intentionally left blank.]
13
PART
II
INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT
Item
3.  Incorporation of Documents by Reference.
The
contents of the Prior Registration Statements are incorporated herein by
reference.  All documents the Company has filed with the SEC pursuant
to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the
filing of the Prior Registration Statements, but prior to the filing of a
post-effective amendment which indicates that all securities offered hereby have
been sold or which deregisters all securities then remaining unsold, shall be
deemed to be incorporated by reference into this Registration Statement and to
be a part hereof from the date of filing of such documents.  Nothing
in this Registration Statement shall be deemed to incorporate by reference
information furnished to but not filed with the Commission.  Any
statement contained in a document incorporated by reference herein shall be
deemed to be modified or superseded for purposes of this Registration Statement
to the extent that a statement contained herein or in any other subsequently
filed document which also is or is deemed to be incorporated by reference herein
modifies or supersedes such statement.  Any statement so modified or
superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Registration Statement.
Item
5.  Interests of Named Experts and Counsel.
A member of Tonkon Torp LLP, legal
counsel to the Company, is the Secretary of the Company and owns 17,500 shares
of the Company's common stock.
Item
6.  Indemnification of Directors and Officers
The Oregon Business Corporation Act
(the "Act") authorizes a corporation to indemnify an officer or director made
party to a proceeding because the officer or director is or was an officer or
director against liability (including amounts paid in settlement) incurred in
the proceeding and against expenses with respect to the proceeding (including
attorney's fees) if:  (a) the conduct of the officer or director was
in good faith, (b) the officer or director reasonably believed that his conduct
was in the best interests of the corporation or at least not opposed to its best
interests, (c) in the case of a criminal proceeding, the officer or
director had no reasonable cause to believe his conduct was unlawful, (d) in the
case of any proceeding by or in the right of the corporation, unless a court
otherwise determines, if such officer or director shall not have been adjudged
liable, and (e) in connection with any other proceeding charging improper
personal benefit to the director or officer, unless a court otherwise
determines, in which the director or officer was not adjudged liable on the
basis that personal benefit was improperly received by the director or
officer.  The Company's Restated Articles of Incorporation, as
amended, and Amended and Restated Bylaws allow the Company to indemnify officers
and directors to the fullest extent permissible by law.
The Act further provides that the
articles of incorporation of a corporation may provide that no director shall be
personally liable to a corporation or its shareholders for monetary damages for
conduct as a director, except that such provision does not eliminate the
liability of a director (i) for any breach of the director's duty of
loyalty to the corporation or its shareholders,
14
(ii) for
acts or omissions not in good faith or which involve intentional misconduct or a
knowing violation of the law, (iii) for any unlawful distribution as defined
under the Act, or (iv) for any transaction from which the director derived an
improper personal benefit.  The Company's Restated Articles of
Incorporation, as amended, and Amended and Restated Bylaws provide that, to the
fullest extent permitted by law, no director shall be personally liable to the
Company or its shareholders for monetary damages for conduct as a
director.
The Company has entered into
indemnification agreements with each director and certain officers that
indemnify them to the full extent authorized or permitted by the
Act.
The Company has purchased directors'
and officers' liability insurance.  Subject to conditions, limitations
and exclusions in the policy, the insurance covers amounts required to be paid
for a claim or claims made against directors and officers for any act, error,
omission, misstatement, misleading statement or breach of duty by directors and
officers in their capacity as directors and officers of the
Company.
Item
8.  Exhibits.
The Exhibit Index immediately
preceding the exhibits is incorporated herein by reference.
[This
space is intentionally left blank.]
15
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant certifies that
it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Walla Walla, State of Washington on July 24, 2008.
KEY
      TECHNOLOGY, INC.
By
/s/ David
      M. Camp
David M.
      Camp
President and
      Chief Executive Officer
POWER
OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that
each person whose signature appears below hereby constitutes and appoints David
M. Camp and John J. Ehren, and each of them, his true and lawful
attorneys-in-fact and agents, with full power of substitution, for him in any
and all capacities, to sign any and all registration statements on Form S-8 for
the registration of the shares of common stock, no par value, of the Company to
be issued pursuant to the 2003 Restated Employees' Stock Incentive Plan, and for
the registration of the shares of common stock acquired by certain officers and
directors of the Company pursuant to the award of restricted stock or the
exercise of stock options, and to sign any and all amendments or post-effective
amendments to such registration statement, including amendments or supplements
to the prospectus contained in any such registration statement and the addition
or amendment of exhibits and other documents in connection therewith, and to
file the same, with all exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto such
attorney and agent full power and authority to do any and all acts and things
necessary or advisable in connection with such matters, and hereby ratifying and
confirming all that the attorney and agent, or his substitute or substitutes,
may lawfully do or cause to be done by virtue hereof.
16
Pursuant
to the requirements of the Securities Act of 1933, this registration statement
has been signed by the following persons in the capacities and on the date
indicated.
Signature
Capacities
Date
/s/ Charles H.
      Stonecipher
Charles
      H. Stonecipher
Chairman
July
      24, 2008
/s/ David M.
      Camp
David
      M. Camp
President,
      Chief Executive Officer and Director
July
      24, 2008
/s/ John J.
      Ehren
John
      J. Ehren
Chief
      Financial Officer and Senior Vice President (Principal Financial
      Officer)
July
      24, 2008
/s/ James R.
      Brausen
James
      R. Brausen
Corporate
      Controller (Principal Accounting Officer)
July
      24, 2008
/s/ Donald A.
      Washburn
Donald
      A. Washburn
Director
July
      24, 2008
/s/ Michael L.
      Shannon
Michael
      L. Shannon
Director
July
      24, 2008
/s/ John E.
      Pelo
John
      E. Pelo
Director
July
      24, 2008
/s/ Richard
      Lawrence
Richard
      Lawrence
Director
July
      24, 2008
17
INDEX TO
EXHIBITS
Exhibit
      Number
Exhibit
4.1
Restated
      Articles of Incorporation (filed as Exhibit 3.1 to the Form 10-Q filed
      with the Securities and Exchange Commission on May 9, 2008 and
      incorporated herein by reference).
4.2
Amended
      and Restated Bylaws, dated November 14, 2007 (filed as Exhibit 3.1(ii) to
      the Current Report on Form 8-K filed with the Securities and Exchange
      Commission on November 20, 2007 and incorporated herein by
      reference).
4.3
Second
      Amended and Restated Rights Agreement, dated as of November 13, 2007,
      between Key Technology, Inc. and American Stock Transfer and Trust Company
      (filed as Exhibit 10.1 to the Current Report on Form 8-K filed with the
      Securities and Exchange Commission on November 19, 2007 and incorporated
      herein by reference).
4.4
2003
      Restated Employees' Stock Incentive Plan (incorporated by reference to
      Appendix A to the Proxy Statement for the 2008 Annual Meeting of
      Shareholders filed with the Securities and Exchange Commission on January
      3, 2008).
5.1*
Opinion
      of Tonkon Torp LLP
23.1*
Consent
      of Grant Thornton LLP, Independent
Auditors
23.2*
Consent
      of Tonkon Torp LLP (included in Exhibit
5.1)
24.1
Power
      of Attorney (included on the signature pages of this registration
      statement)
*Filed
herewith
18