Exhibit 10.2

# SUBLEASE AGREEMENT

THIS
SUBLEASE AGREEMENT (Sublease) is made as of this 30th day of December, 2005 by
and between SILICON GENESIS CORPORATION, a California corporation
(Sublandlord) and TEGAL CORPORATION., a Delaware corporation
(Subtenant).

WITNESSETH:

1.    
          Recitals. This Sublease is made with reference to the following facts:

| | 1.1 | BRE/PCCP
Orchard LLC, a Delaware limited liability company(Master Landlord), as
landlord, and Sublandlord, as tenant, entered into a written lease dated December 22,
2000, a copy of which is attached hereto as Exhibit A(Master Lease)
covering the premises commonly known as 51 East Daggett Drive, San Jose, California
(being 12,717 rentable square feet and referred to herein as the Premises)
and 61 East Daggett Drive, San Jose, California (being 13,300 rentable square feet).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.2 | The
Master Lease was amended on October 1, 2001, December 12, 2001, May 20, 2002 and March
15, 2005. Such amendments are included in the reference to Master Lease.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.3 | Subtenant
desires to sublease the Premises from Sublandlord on the terms and conditions contained
in                   this Sublease.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------

2.    
          Basic Sublease Provisions.

| | 2.1 | Premises
Address:  51 East Daggett Drive, San Jose, California.
| | --- | ---------------------------------------------------------------

| | 2.2 | Rentable
Area of Premises:  Approximately 12,717 square feet of a larger building known as 41-61
East                   Daggett Drive, San Jose, CA (see exhibit D)
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.3 | Subtenants
Percentage Share: 32.35%.
| | --- | -------------------------------------

| | 2.4 | Commencement
Date: February 1, 2006.
| | --- | ------------------------------------

| | 2.5 | Expiration
Date: January 31, 2008.
| | --- | ----------------------------------

| | 2.6 | Base
Monthly Rent: Eleven Thousand Four Hundred Forty-Five Dollars and Thirty Cents
($11,445.30) per month. Base Monthly Rent shall be paid without demand, deduction,
set-off or counter claim, in advance of the first day of each calendar month during the
term of this Sublease, and in the event of a partial rental month, rent shall be prorated
on the basis of a thirty (30) day month.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.7 | Prepaid
Rent: Immediately upon execution of this Sublease, Subtenant shall prepay to Sublandlord
the first months Basic Monthly Rent in the amount of Eleven Thousand Four Hundred
Forty-Five Dollars and Thirty Cents ($11,445.30) per month.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.8 | Rental
Adjustment(s) during the sublease term:
| | --- | ----------------------------------------------

`Adjustment Date                                 Adjusted Rent
                  February 1, 2007                                $11,788.66`

| | 2.9 | Permitted
Use:  Research and development, storage and distribution, offices, marketing, and other
                  related uses as per the Master Lease.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.10 | Acceptance
of Premises: Sublandlord shall deliver the Premises with the roof, HVAC system,
electrical, plumbing and lighting in good working condition. Prior to the Commencement
Date Sublandlord shall replace all worn ceiling tiles. Otherwise, Subtenant agrees to
accept the Premises in an as is condition. Subtenant acknowledges that
Sublandlord has not made any representation or warranty with respect to this Sublease
Agreement, including, without limitation, any representation or warranty as to the
suitability of the Premises for the conduct of Subtenants business, except as
specifically set forth in this Sublease. Subtenant shall, at Subtenants expense,
comply promptly with all applicable statutes, ordinances, rules, regulations, orders,
restrictions of record and requirements in effect during the term hereof regulating
Subtenants specific use of the Premises, including, without limitation, making
structural alterations or providing auxiliary aids and services for Subtenants
specific use of the Premises as required by the Americans with Disabilities Act of 1990,
42 U.S.C. § 12101 etseq. (the ADA). In no event
shall Subtenant be responsible for the failure of the Premises to comply currently with
any such laws, except to the extent such compliance is triggered by Subtenants
specific use of the Premises.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.11 | Address
for payment of rent and notices:
| | ---- | ----------------------------------------

`Subtenant:                                      Sublandlord:

                  Tegal Corporation.                              Silicon Genesis Corporation
                  51 East Daggett Drive                           1 East Daggett Drive,
                  San Jose, California 95134-2109                 San Jose, California 95134
                  Att'n: Thomas Mika                              Att'n: Ted Fong
                  Phone: 707-765-5630                             Phone: (408) 288-5858
                  Facsimile: 707-763-0436                         Facsimile: (408) 288-5859

                  Prior to the Commencement Date, however, Subtenant's address shall be
                  Tegal Corporation
                  2201 S. McDowell Blvd
                  Petaluma, CA 94954
                  Phone: (707) 763-5600
                  FAX: (707) 765-9311`

| | 2.12 | Security
Deposit:  Subtenant shall deposit with Master Landlord within two (2) business days after
                  receipt of the Master Landlord's consent to this Sublease Thirty-Five
Thousand Dollars and No                   Cents ($35,000.00) ("Deposit"), which will be
in the form of cash as security for Subtenant's                   faithful performance of
Subtenant's obligations. No trust relationship is created herein
                  between Sublandlord and Subtenant with respect to the Deposit.  Any
deposit under the Master                   Lease which may be returned by the Master
Landlord shall be the property of Sublandlord at the                   end of the
Sublease Term.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.13 | Brokers:
 Sublandlord is represented by Cornish & Carey Commercial (Fred Pilster, Agent) and
Subtenant                   is represented by Equis (Dan Latini and Dede Satten, Agents)
and both parties agree to such                   representation.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.     Premises.
Sublandlord hereby leases to Subtenant and Subtenant hereby leases from Sublandlord, on
and subject to the terms and conditions hereinafter set forth, the Premises.

4.     Term.
The term of this Sublease shall commence on the Commencement Date and end on the
Expiration Date unless sooner terminated pursuant to any provision hereof, or of the
Master Lease.

5.     Base
Monthly Rent. Beginning on the Commencement Date, Tenant shall pay the Base Monthly Rent
as set forth in Paragraph 2.6 above and after the Adjustment Date, the Adjusted Rent
pursuant to Paragraph 2.8 above, on the first day of each calendar month of the term
(provided that no Base Monthly Rent shall actually be due and payable for the first month
of the term as Tenant has prepaid such amount pursuant to Paragraph 2.6 above).

6.     Delay of
Possession. Notwithstanding said Commencement Date, if for any reason beyond
Sublandlord's reasonable control Sublandlord cannot deliver possession of the Premises to
Subtenant on said date, Sublandlord shall not be subject to any liability therefor, nor
shall such failure affect the validity of this Sublease or the obligations of Subtenant
hereunder or extend the term hereof, but in such case Subtenant shall not be obligated to
pay rent until possession of the Premises is tendered to Subtenant; provided, however,
that if Sublandlord shall not have delivered possession of the Premises within thirty
(30) days from said Commencement Date, Subtenant may, at Subtenant's option, by notice in
writing to Sublandlord within ten (10) days thereafter, cancel this Sublease, in which
event the parties shall be discharged from all obligations thereunder. If this Sublease
is canceled as herein provided, Sublandlord shall promptly return any monies previously
deposited by Subtenant.

7.     Early
Entry. From and after the date of this Sublease and until the Commencement Date, and
only upon twenty-four (24) hours prior notice to Sublessor, Subtenant and its authorized
agents, contractors, subcontractors and employees shall be granted a license by
Sublandlord to enter upon the Premises, at Subtenant's sole risk and expense, during
ordinary business hours, for the sole purpose of installing Subtenant's trade fixtures
and equipment in the Premises; provided, however, that the provisions of this Sublease,
other than with respect to the payment of Basic Monthly Rent or Additional Rent (as
defined in the Master Lease), shall apply during such early entry, including, but not
limited to, Paragraph 9.6 below.

8.     Prorations.
Subtenant's Percentage Share of Common Operating Expenses (as defined in the Master
Lease) payable by Sublandlord under the Master Lease and any other expenses incurred in
the operation and maintenance of the Premises, shall be prorated as of the Commencement
Date, with the Sublandlord being liable for all sums incurred prior to and the Subtenant
being liable for all sums incurred subsequent to said Commencement Date; provided that if
any of the aforesaid prorations cannot be calculated accurately as of the date of the
execution of this Sublease, then the same shall be calculated as soon as reasonable
practicable and either party owing the other party a sum of money based such subsequent
proration(s) shall promptly pay said sums to the other party.

9.     Incorporation
By Reference; Assumption.

| | 9.1 | All
of the Paragraphs of the Master Lease applicable to the Premises during the term hereof
are                   incorporated into this Sublease as if fully set forth in this
Sublease except for the                   following: Article 2, Paragraphs 3.1, 3.2, and
3.5.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.2 | If
any provisions of this Sublease conflict with any portion of the Master Lease, as
incorporated                   herein, the terms of this Sublease shall govern.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.3 | Subtenant
shall assume and perform to Sublandlord the tenant obligations under the Master Lease
                  provisions incorporated into this Sublease pursuant to Paragraph 9.1
above, to the extent that                   the provisions are applicable to the Premises
during the term hereof.  Subtenant shall have no                   obligation or
responsibility with respect to any tenant obligations required to be performed
                  prior to the Commencement Date.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.4 | Subtenant
shall pay to Sublandlord, as additional rent, Subtenant's Percentage Share of Common
Operating                   Expenses payable by Sublandlord under the Master Lease
applicable to the Premises not later                   than five (5) days prior to the
date any such amounts are due and payable by Sublandlord;                   provided,
however, Subtenant shall pay Subtenant's Percentage Share of estimated Common
                  Operating Expenses (payable under Section 8.1 of the Master Lease)
payable by Sublandlord under                   the Master Lease in advance in monthly
installments on the first of the month with installments                   of Subtenant's
Base Monthly Rent.  Utilities shall be paid by Subtenant directly to the utility
                  company.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.5 | With
respect to work, services, repairs, repainting, restoration, the provision of utilities
or HVAC                   services, or the performance of other obligations required of
Master Landlord under the Master                   Lease, Sublandlord's sole obligation
with respect thereto shall be to request the same, on                   request in
writing by Subtenant, and to use reasonable efforts to obtain the same from Master
                  Landlord.  Subtenant shall cooperate reasonably with Sublandlord as may
be required to obtain                   from Master Landlord any such work, services,
repairs, repainting restoration, the provision of                   utilities, elevator
or HVAC services, or the performance of any of Master Landlord other
                  respective obligations under the Master Lease.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.6 | Subtenant
shall comply with the provisions of Section 9.1 of the Master Lease by obtaining the
required                   insurance policies and policy limits and naming Sublandlord as
additional insured.                   Additionally, Subtenant shall be required to obtain
and keep in force during the term of this                   Sublease, at its sole cost
and expense, the statutory amount of worker's compensation insurance
                  required by the State of California for the benefit of Subtenant's
employees.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.7 | Sublandlord
hereby agrees to provide Subtenant forty-eight (48) of the parking spaces granted to
                  Sublandlord under the Master Lease.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.8 | In
the event that pursuant to the Master Lease Sublandlord is entitled to any abatement of
rent for                   reason of casualty, condemnation, failure to provide services,
or the failure to perform                   obligations under the Master Lease, then
Sublandlord shall likewise be entitled to an abatement                   of rent under
this Sublease.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.9 | Notwithstanding
anything contained herein to the contrary, upon expiration or earlier termination of
                  this Sublease, Subtenant shall have no obligation to remove any
furniture, equipment or                   improvements not placed in the Premises by
Subtenant or its agents or contractors.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10.     Subtenant's
Performance Under Master Lease. At any time and on reasonable prior notice to Subtenant,
Sublandlord can elect to require Subtenant to perform its obligations under this Sublease
directly to Master Landlord, as applicable, in which event Subtenant shall send to
Sublandlord from time to time copies of all notices and other communications it shall
send to and receive from Master Landlord.

11.     Covenant
of Quiet Enjoyment. Sublandlord represents that the Master Lease attached hereto as
Exhibit A is a true, complete and correct copy of the Master Lease, that the Master Lease
is in full force and effect and that, to Sublandlord's actual knowledge, there are no
defaults on Sublandlord's or Master Landlord's part under the Master Lease as of the
Commencement Date. Subject to this Sublease terminating as provided herein or in the
Master Lease (other than by reason of Sublandlord's default thereunder), Sublandlord
represents that if Subtenant performs all the provisions in this Sublease to be performed
by Subtenant, Subtenant shall have and enjoy throughout the term of this Sublease the
quiet and undisturbed possession of the Premises by anyone claiming by or through
Sublandlord. Sublandlord shall have the right to enter the Premises at any time, in the
case of an emergency, and otherwise at reasonable times upon at least twenty-four (24)
hours' advance notice, for the purpose of inspecting the condition of the Premises and
for verifying compliance by Subtenant with this Sublease and the Master Lease and to
permit Sublandlord to perform its obligations under this Sublease and the Master Lease.

12.     Master
Lease.

| | 12.1 | Subtenant
shall not do or permit to be done anything which would constitute a violation or breach
of any                   of the terms, conditions or provisions of the Master Lease or
which would cause the Master                   Lease to be terminated or forfeited by
virtue of any risks of termination or forfeiture                   reserved by or vested
in Master Landlord, except to the extent that such act or occurrence
                  shall have resulted, directly or indirectly, from a default by
Sublandlord under this Sublease                   or the failure of Sublandlord to comply
with its obligations under the Master Lease not                   required to be
performed by Subtenant pursuant to this Sublease.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.2 | Sublandlord
shall not do or permit to be done anything which would constitute a violation or breach
of                   any of the terms, conditions or provisions of the Master Lease or
which would cause the Master                   Lease to be terminated or forfeited by
virtue of any risks of termination or forfeiture                   reserved by or vested
in Master Landlord, except to the extent that such act or occurrence
                  shall have resulted, directly or indirectly, from a default by
Subtenant under this Sublease                   (including without limitation, the
failure of Subtenant to pay any amount of Base Monthly Rent                   or
Subtenant's Percentage Share of Common Operating Expenses).
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 12.3 | If
the Master Lease terminates, this Sublease shall terminate and the parties shall be
relieved from all                   liabilities and obligations under this Sublease;
except that if the Master Lease or this                   Sublease terminates as a result
of a default of Subtenant under this Sublease, Subtenant shall                   be
liable to the Sublandlord for all damages suffered by Sublandlord as a result of the
                  termination; and except that if the Master Lease or this Sublease
terminates as a result of a                   default of Sublandlord under this Sublease,
Sublandlord shall be liable to the Subtenant for                   all damages suffered
by Subtenant as a result of the termination.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13.     Hazardous
Materials.

| | 13.1 | Subtenant
shall provide Subtenant shall not store, use or dispose of any Hazardous Materials (as
defined                   in the Master Lease) on, in or about the Premises in violation
or breach of any of the terms,                   conditions or provisions of the Master
Lease.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2 | Subtenant
has provided to Sublandlord and Master Landlord an accurately completed response to
Master                   Landlord's standard form of Hazardous Materials Questionnaire
attached hereto as Exhibit B (the                   "Questionnaire").
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.3 | Subtenant's
handling, storage, and use of Hazardous Materials on the Premises shall be limited to the
                  types, amounts, and use identified on the Questionnaire.  Subtenant
shall provide written                   notice to Sublandord updating the Questionnaire
prior to bringing any new Hazardous Materials                   onto the Premises.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.4 | Subtenant
shall comply with all rules, regulations and requirements promulgated by national, state
or                   local governmental agencies or utility suppliers concerning its use
and disposal of Hazardous                   Materials on the Premises and shall obtain
and comply with all required operating permits and                   regulatory
approvals, including, without limitation, transportation permits, wastewater
                  discharge permits, and air emissions permits, and remain in compliance
with all such permits or                   approvals while operating in the Premises
during the term of this Sublease.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.5 | To
the best of Sublanlord's knowledge, after reasonable inquiry, the Premises are not in
violation of                   any federal, state, local or administrative agency
ordinance, law, rule, regulation, order or                   requirement relating to
environmental conditions or Hazardous Material.  Subtenant expressly
                  understands and agrees that the phrase "to the best of Sublandlord's
knowledge" as used in this                   paragraph means the actual knowledge only of
Mr. Ted Fong.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14.     Indemnity.
Subtenant will indemnify, defend (by counsel reasonably acceptable to Sublandlord),
protect and hold Sublandlord harmless from and against any and all claims, demands,
losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of
or relating to Subtenant's breach or default under this Sublease or use or occupancy of
the Premises, or, to the extent incorporated herein, the Master Lease. Sublandlord will
indemnify, defend (by counsel reasonably acceptable to Subtenant), protect and hold
Subtenant harmless from and against any and all claims, demands, losses, damages, costs
and expenses (including reasonable attorneys' fees) arising out of or relating to
Sublandlord's willful misconduct or active negligence of which Sublandlord has actual
notice and a reasonable opportunity to cure but fails to so cure).

15.     Attorneys'
Fees. If there is any legal or arbitration action or proceeding between Sublandlord and
Subtenant to enforce any provision of this Sublease or to protect or establish any right
or remedy of either Sublandlord or Subtenant hereunder, the unsuccessful party to such
action or proceeding will pay to the prevailing party all costs and expenses, including
reasonable attorneys' fees incurred by such prevailing party in such action or proceeding
and in any appearance in connection therewith, and if such prevailing party recovers a
judgment in any such action, proceeding or appeal, such costs, expenses and attorney's
fees will be determined by the court or arbitration panel handling the proceeding and
will be included in and as a part of such judgment.

16.     Removal
of Personal Property and Surrender. All articles of personal property, and all business
and trade fixtures, machinery and equipment, cabinet work, furniture and movable
partitions, if any, owned or installed by Subtenant at its expense in the Premises shall
be and remain the property of Subtenant and may be removed by Subtenant at any time,
provided that Subtenant, at its expense, shall repair any damage to the Premises caused
by such removal or by the original installation. Sublandlord may elect to require
Subtenant to remove all or any part of such property at the expiration or sooner
termination of this Sublease (unless extended by Subtenant), in which event such removal
shall be done at Subtenant's expense, and Subtenant shall at its own expense repair any
damage to the Premises caused by such removal prior to the termination of this Sublease.
Notwithstanding the above, at the termination of this Sublease, Subtenant shall surrender
the Premises in as good condition as received on the Commencement Date of this Sublease,
wear and tear, casualty and condemnation excepted.

17.     Maintenance
and Repairs. Subtenant shall be responsible for all maintenance and repairs required to
be performed by the tenant under the Master Lease with respect to the Premises during the
term hereof.

18.     Personal
Property. The cubicles, furniture, cubicle cabling, telephone sets, and clean room
equipment and support systems currently in place in the Premises including the De-ionized
Water System, Acid Neutralization System, Life Safety Systems, Alarm System, Scrubber and
Exhaust, Burn Box, Clean Dry Air System, Evaporative Cooling System, and Generator (the
"Personal Property"), will be delivered by Sublandlord to Subtenant on the Commencement
Date, in good working condition. Subtenant will have the use of the Personal Property
during the term of this Sublease and any Extension periods at no additional charge of
rent or fee. Subtenant accepts the Personal Property in its "as is" condition and
Sublandlord makes no warranty as to the condition of the Personal Property or its present
or future suitability for Subtenant's purposes.

19.     Shared
Building Systems.

| | 19.1 | Services
Provided at No Charge:
| | ---- | -------------------------------

| | (a) | Subtenant
shall provide Sublandlord reasonable access to the Clean Dry Air System at no charge to
                           Sublandlord.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------

| | (b) | For
as long as Sublandlord requires De-ionized water from the Subtenant, Subtenant shall
provide                            Sublandlord reasonable access to the De-ionized Water
System at no charge.  Subtenant                            shall use commercially
reasonable efforts to maintain such equipment in good working
                           order and to provide de-ionized water of quality no less than
the specifications                            listed in Exhibit C attached hereto.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.2 | Services
Provided at a Mutually Agreed Charge:
| | ---- | ----------------------------------------------

| | (a) | Subtenant
shall allow Sublandlord to purchase nitrogen at the most favorable costs obtainable by
either                            Sublandlord or Subtenant's cost on contract.  Subtenant
shall pay for the costs, if                            any, for installing a meter to
determine the allocated usage of the nitrogen by                            Subtenant and
Sublandlord.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Sublandlord may provide Internet access, Internet security, network services, security
camera                            surveillance or other services, provided that the cost
for such services can be                            mutually agreed to.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.3 | During
the term of this Sublease, Sublandlord shall provide to Subtenant the alarm and security
services                   at the Premises (timed with Sublandlord's regular schedule and
including security badge access                   capability).
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.4 | In
the event Subtentant, or its successors or assigns, continue to lease the Premises as a
tenant of the                   Master Landlord following the expiration of the term of
this Sublease and Sublandlord, or its                   successors or assigns, continue
to lease the adjacent premises as a tenant of the Master                   Landlord the
provisions of this Paragraph 19 shall survive for so long as Subtenant and
                  Sublandlord or their respective successors and/or assigns continue to
lease their respective                   premises.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20.     Real
Estate Brokers. Each party warrants to the other that there are no brokerage commissions
or fees payable in connection with this Sublease except to the brokers set forth in
Paragraph 2.13. Each party further agrees to indemnify and hold the other party
harmless, from any cost, liability and expense (including attorney's fees), which the
other party may incur as the result of any breach of this Paragraph 20.

21.     Master
Landlord Default; Consents. Notwithstanding any provision of this Sublease to the
contrary, (a) Sublandlord shall not be liable or responsible in any way for any loss,
damage, cost, expense, obligation or liability suffered by Subtenant by reason or as the
result of any breach, default or failure to perform by the Master Landlord under the
Master Lease; and (b) whenever the consent or approval of Sublandlord is required for a
particular act, event or transaction (i) any such consent or approval by Sublandlord
shall be subject to the consent or approval of Master Landlord, and (ii) should Master
Landlord refuse to grant such consent or approval, under all circumstances, Sublandlord
shall be released from any obligation to grant its consent or approval.

22.     Notices.
All notices given under this Sublease must be in writing and shall be delivered (a) in
person, (b) by certified mail, postage prepaid, return receipt requested, (c) by a
commercial overnight courier that guarantees next day delivery and provides a receipt, or
(d) by telefacsimile or telecopy, and such notices shall sent to the party at its address
set forth in Paragraph 2.11 above. Those addresses may be changed by either party by
written notice to the other party.

23.     Special
Notice. Should either party receive any notice of default under the Master Lease from
Master Landlord, such party shall promptly cause a copy of such notice of default to be
transmitted via facsimile to the other party at the fax number provided in Paragraph 2.11
above as well as mailing a copy to such other party at the addresses provided in
Paragraph 2.11 above, provided that such requirement shall be deemed waived in any
instance where the notice of default reflects on its face that it is being sent
simultaneously to Sublandlord and Subtenant. Any further written communications between
the parties and the Master Landlord regarding the status of such default shall be
similarly noticed via facsimile and mail as provided in this Paragraph.

24.     No
Encumbrance. Subtenant shall not voluntarily or by operation of law mortgage or
otherwise encumber all or any part of Subtenant's interest in the Sublease or the
Premises.

25.     Authority.
Sublandlord and Subtenant each represents and warrants to the other that it is
authorized to execute and deliver and perform its obligations under this Sublease. Each
individual executing this Sublease on behalf of Sublandlord and Subtenant, respectively,
represents and warrants that he or she is duly authorized to execute and deliver this
Sublease on behalf of the entity in accordance with its organizational documents and that
this Sublease is binding upon the entity in accordance with its terms.

26.     Entire
Agreement. This Sublease constitutes the entire agreement between the parties, and there
are no agreements or representations between the parties except as expressed herein.
Except as otherwise provided herein, no subsequent change or addition to this Sublease
shall be binding unless in writing and signed by the parties hereto.

27.     Successors
and Assigns. This Sublease shall be binding on and shall inure to the benefit of the
parties and their successors and assigns.

28.     Severability.
If any term or provisions of this Sublease shall, to any extent, be determined by a court
of competent jurisdiction to be invalid or unenforceable, the remainder of this Sublease
shall not be affected thereby, and each term and provision of this Sublease shall be
valid and be enforceable to the fullest extent permitted by law.

29.     Survival.
All representations, warranties, obligations, indemnities and liabilities contained in
this Sublease shall survive the expiration, termination or revocation of this Sublease.

30.     Counterparts;
Facsimile Signatures. This Sublease may be executed in two or more counterparts and all
such counterparts shall constitute one instrument binding on the parties in accordance
therewith. This Sublease shall be deemed executed and delivered upon each party's
delivery of executed signature pages of this Sublease to each other party, which
signature pages may be delivered by facsimile with the same force and effect as delivery
of the originals (with original signatures to follow via overnight courier).

31.     Master
Landlord's Consent. This Sublease is expressly conditioned upon receipt within fifteen
(15) days from the date of this Sublease of the written consent of Master Landlord and
Subtenant and Master Landlord entering into a binding agreement to directly lease the
Premises for a term commencing on the expiration of the term of this Sublease and which
agreement shall provide that Subtenant assume the obligations of Sublandlord under
Paragraphs 6 of the Fourth Amendment of the Master Lease related to the Premises.

32.     Assignment
and Subleasing. Subject to the terms of Article 14 of the Master Lease which are
incorporated into this Sublease pursuant to Paragraph 9.1 above, Subtenant shall have the
right to sub-sublease the Premises or assign this Sublease subject to Sublandlord's prior
written approval, which shall not be unreasonably withheld or delayed, and any approval
required of Master Landlord under the Master Lease. Except as otherwise provided in the
Master Lease, any profits (after payment of subleasing costs, including commissions and
attorneys' fees) generated by such subleasing or assignment shall be divided equally
between Sublandlord and Subtenant.

33.     Tenant
Improvements. Sublandlord shall provide the Subtenant with an improvement allowance of
up to Ten Thousand dollars ($10,000.00). The allowance shall be payable by Master
Landlord from the Sublandlord's Security Deposit directly to Subtenant for reimbursement
upon submittal of invoices after completion of such improvements.

---

IN     WITNESS
WHEREOF, Sublandlord and Subtenant have executed this Sublease as of the day and year
first above written.

`SUBLANDLORD:                        SILICON GENESIS, INC.,
                                            a California corporation


                                            By: /s/ Theodore E. Fong 
                                            Name: Theodore E. Fong 
                                            Title: Vice President & CEO 


SUBTENANT:                          TEGAL CORPORATION.,
                                            a Delaware corporation


                                            By: /s/ Thomas R. Mika 
                                            Name: THOMAS R. MIKA 
                                            Title: PRESIDENT & CEO`

# CONSENT OF MASTER
LANDLORD

BRE/PCCP ORCHARD, L.L.C., a Delaware
limited liability company (Master Landlord), hereby consents to the foregoing
Sublease.

`Date: ____________, 2005

                  Master Landlord:                   BRE/PCCP ORCHARD, L.L.C.
                                                     a Delaware limited liability company

                                                     By:      Orchard 702/703 Investors, LLC
                                                              a Delaware limited liability company,
                                                              its Managing Member



                                                              By: __________________________________
                                                              Name: ________________________________
                                                              Its: ____________________________`

# CONSENT OF LANDLORD

Pursuant
to a Lease Agreement (the Lease) dated for reference purposes as of December
22, 2000, as amended on October 1, 2001, December 12, 2001, May 20, 2002 and March 15,
2005 (collectively, including the Amendments, referred to as the Lease)
between BRE/PCCP Orchard LLC, a Delaware limited liability company (Landlord),
and Silicon Genesis Corporation, a California corporation (Tenant), relating
to premises commonly known as 51 East Daggett Drive, San Jose, California (being 12,717
rentable square feet and referred to herein as the Premises) as well as other
space not subleased herein, in the County of Santa Clara (the Premises),
Tenant has requested that Landlord consent to Tenants Sublease dated December 10,
2005 and attached to this Consent as Exhibit A (the Sublease) to
Tegal Corporation, a Delaware corporation (Subtenant) of the entire Premises
to be subleased as described above (the Subleased Premises) on the terms and
conditions set forth in the Sublease.

In
consideration of Tenants and Subtenants execution of this Consent of Landlord
and agreement to the terms and conditions set forth in this Consent, Landlord consents to
the Sublease of the Subleased Premises on the following terms and conditions:

1.    
          Subrent: Tenant and Subtenant represent and warrant to
          Landlord that the Sublease contains a complete and accurate statement of all
          money, property, value, and other consideration received or to be received from
          Subtenant in regard to the Sublease.

2.    
          No Waiver: This Consent does not constitute consent to any
          subsequent subletting or assignment, nor a waiver of the restriction on
          assignment and subletting contained in the Lease. Tenant and Subtenant agree
          that notwithstanding any contrary provision in the Sublease, the provisions of
          the Lease whereby Landlord is entitled to receive a portion of the difference
          between the Lease Rent and amounts received from a subtenant or an assignee,
          shall be applicable to Subtenant in regard to any further sub-sublease of the
          Subleased Premises or any assignment of the Sublease, such that Subtenant will
          pay such portion of the difference directly to Landlord.

3.    
          Tenants Primary Obligations: Nothing herein shall
          release or alter the primary obligations of Tenant under the Lease, nor shall
          this Consent be deemed to create contractual obligations on the part of Landlord
          to the Subtenant. By executing this Consent, Subtenant agrees to assume all
          obligations of Tenant under the Lease related to the Subleased Premises arising
          after the date of the Sublease and to remain jointly and severally liable
          therefore with Tenant. Subtenant shall not, by this provision, assume any
          liability for obligations arising under the Lease but not relating to the
          Subleased Premises.

4.    
          Costs and Attorneys Fees: Landlord is entitled to be
          paid its reasonable costs and attorneys fees relating to this
          Consent. Tenant shall deliver to Landlord a check in the sum of $1,200
          representing Landlords attorneys fees and costs along with the
          executed original of this Consent. In the event of any litigation arising
          hereunder, the prevailing party shall be entitled to recover reasonable
          attorneys fees and costs from the other party, and if due from Tenant,
          such fees shall constitute Additional Rent.

5.    
          No Effect On Lease: In no event shall Landlords
          consent to this Sublease be, or be construed as, a modification of the terms of
          the Lease, and in the event of any inconsistency between any term of the
          Sublease and the terms of the Lease, the terms of the Lease shall prevail. By
          consenting to the Sublease, Landlord has not agreed to any purported duties or
          agreements set forth in the Sublease. Further, Landlord has not agreed to any
          language or undertaken any duties set forth or referenced in the Sublease except
          as such language and/or such duties are explicitly stated and set forth in this
          Consent.

6.    
          Modifications; Notices: Tenant and Subtenant agree that
          they will not amend, modify, supplement, extend, renew, or otherwise change the
          terms and provisions of the Sublease without the prior written consent of the
          Landlord, and that any modification, supplementation, renewal, or extension, by
          agreement or pursuant to an option granted in the Sublease, requires further
          written consent of Landlord, and will be considered a new sublease or assignment
          transaction subject to all provisions of the Lease relating thereto. Tenant and
          Subtenant will provide Landlord with courtesy copies of any notices or legal
          complaints or cross-complaints given or served by either of them in connection
          with the Sublease.

7.    
          Hazardous Materials: (a) Subtenant, at its sole cost, shall
          comply with all laws relating to the storage, use, and disposal of Hazardous
          Materials (as defined in the Lease) that Subtenant, its agents, employees,
          contractors, or invitees bring or permit to be brought on to the Subleased
          Premises or on the Premises or the Property. If Subtenant does store, use, or
          dispose of any Hazardous Materials, Subtenant shall notify Landlord in writing
          at least five (5) days prior to their first appearance on the Subleased
          Premises, and unless disclosed prior to the execution of this Consent in a
          response provided by Subtenant to Landlords Hazardous Materials
          Questionnaire or other written disclosure, such Hazardous Materials shall not be
          stored, used, or disposed of on the Subleased or Premises without
          Landlords advance written approval. Subtenant shall be subject to all
          obligations of Tenant under the Lease relating to Hazardous Materials (as
          defined therein).

(b)       
          Subtenant shall be responsible for and shall defend, indemnify, and hold
          Landlord and its agents harmless from and against all claims, costs and
          liabilities, including attorneys fees and costs, arising out of or in
          connection with the storage, use, or disposal of Hazardous Materials in or about
          the Subleased Premises, the Premises, or the Property by Subtenant, its agents,
          employees, contractors, or invitees which occur prior to or after the date of
          the Sublease, but Tenant shall remain responsible for any such matters to the
          extent set forth in the Lease, and Subtenants responsibility and duty as
          set forth above shall not relieve Tenant of its responsibilities and duties
          pursuant to the Lease.

8.    
          Construction and Signage: Any and all construction to be
          performed by Tenant or Subtenant on the Subleased Premises shall be subject to
          the advance written approval of Landlord as set forth in the Lease. Any signage
          called for in the Sublease shall be subject to Landlords approval as per
          the terms of the Lease, and subject to the procurement of approval and permits
          from the City in which the Premises are located. By approving the Sublease,
          Landlord shall not be deemed to have approved any signage or construction
          referenced therein.

9.    
          Insurance and Indemnity: The Subtenant shall comply with
          all of the insurance provisions of the Lease as if it were the Tenant named
          thereunder, and shall name the Landlord as an additional insured on all policies
          of insurance required by the Sublease and Lease, and provide the Landlord with a
          documentary proof thereof as required by the Lease. Subtenant releases Landlord
          and its agents and employees, from any liability for injury to any person or
          damage to property that is caused by or results from any risk insured against
          under (1) any insurance policy carried by Subtenant or Tenant and in force at
          the time of such injury or damage, and/or (2) any insurance policy which
          Subtenant was required by this Consent, the Lease, or the Sublease to have in
          force. Subtenant shall cause each insurance policy obtained by it to provide
          that the insurer waives all right of recovery by way of subrogation against
          Landlord and its agents and employees in connection with any injury or damage to
          property. Subtenant shall hold harmless, indemnify and defend Landlord and its
          employees and agents (with counsel reasonably satisfactory to Landlord) from all
          liability, penalties, losses, damages, costs, expenses, causes of action, claims
          and/or judgments arising by reason of any death, bodily injury, personal injury
          or property damage arising from (i) any occurrence on the Subleased Premises
          during the Sublease Term or any period of Subtenants occupancy (unless
          caused by the gross negligence or willful misconduct of Landlord or its agents),
          (ii) any occurrence on the Premises or Landlords Property caused by
          Subtenant or its employees or agents (unless caused by the gross negligence or
          willful misconduct of Landlord or its agents), and (iii) the negligence or
          willful misconduct of Tenant or its employees and agents wherever occurring. The
          provisions of this Paragraph shall survive the expiration or sooner termination
          of this Lease.

10.    
          Use: Subtenant shall use the Subleased Premises only for
          the uses allowed by the Lease and for no other purpose.

11.    
          Assignment Of Tenants Rights: Tenant irrevocably
          assigns to Landlord, as security for the performance of each and all of
          Tenants obligations under the Lease, all rent and other consideration
          received or to be received from Subtenant. Landlord, as assignee of Tenant, or a
          receiver appointed on Landlords application, may (but is not required to)
          collect such rent or other consideration, provided, however, that until and
          unless Tenant commits an Event of Tenants Default under the Lease, Tenant
          shall have the right to collect such rent or other consideration (subject to any
          obligation set forth in the Lease whereby Tenant is to pay all or a part of such
          rent or other consideration to Landlord). Such assignment shall be subject to
          the following terms and conditions:

| | (a)       
               Landlord may collect such rent or other consideration from Subtenant only so
               long as Tenant shall continue to be in default of its obligations under the
               Lease.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       
               Upon Landlords written request following the occurrence of an Event of
               Default under the Lease, Tenant shall execute such documents as are reasonably
               requested by Landlord for the purpose of confirming to Subtenant that Landlord
               has the right to collect all rent and other consideration otherwise due to
               Tenant from such subtenant or assignee.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       
               Subtenant has the right and duty to pay rent or other consideration otherwise
               due to Tenant directly to Landlord upon receipt from Landlord of a written
               statement that an Event of Tenants Default exists under the Lease, and in
               such event, each payment made by Subtenant to Landlord shall be deemed to
               satisfy the obligations of Subtenant to Tenant, but only to the extent of such
               payment.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       
               Subtenants payment to Landlord pursuant to this assignment shall not
               create or evidence any direct landlord tenant relationship between Subtenant and
               Landlord, and Landlord may exercise all remedies to terminate the Lease
               (including the termination of Subtenants possession of the Premises or the
               Subleased Premises) in the event of any Event of Default by Tenant,
               notwithstanding its receipt of any payment from Subtenant pursuant to this
               assignment, unless the receipt of such payment completely cures Tenants
               default. The acceptance of a payment from Subtenant pursuant to this assignment
               shall not affect Landlords right to its remedies for Tenants
               default.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12.    
          Termination: The Sublease is and remains subject and
          subordinate to the Lease, and a termination of the Lease for any reason
          (including but not limited to a default of Tenant) shall terminate the Sublease.

13.    
          Brokerage Commissions: Notwithstanding anything set forth
          in the Sublease, Landlord has no obligation to pay and will not pay commissions
          or fees to any broker or finder in regard to the Sublease or Landlords
          consent thereto. Tenant and Subtenant will hold Landlord harmless and indemnify
          and defend Landlord against any claims for brokerage commissions arising in
          regard to the Sublease or Landlords consent thereto.

14.    
          Construction: This Consent has been reviewed and negotiated
          through discussions between the parties at arms length. No rule of
          construction under which ambiguities are to be resolved against drafting parties
          shall be applicable hereto or employed in the interpretation of the Consent.

`LANDLORD:                                                     TENANT:

BRE/PCCP ORCHARD, L.L.C.                                      Silicon Genesis Corporation, a California
a Delaware limited liability company                          corporation

By:   ORCHARD 702/703 Investors, LLC, a                       /s/ Theodore E. Fong
Delaware limited liability company, its Member
                                                              By   Theodore E. Fong    
By:     /s/ Michael J. Biggar                                    [Print Name and Title]
        Michael J. Biggar                                     Dated:  12/29/05 
        Managing Member
                                                              SUBTENANT
Dated: 1/4/06 
                                                              Tegal Corporation, a Delaware corporation

                                                                 /s/ Thomas R. Mika   

                                                              By    THOMAS R. MIKA  
                                                                   [Print Name and Title]

                                                              Dated:  12/30/05`

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EXHIBIT A

MASTER LEASE

1.    
          Lease dated for reference purposes as of December 22, 2000

2.    
          First Amendment to Lease dated October 1, 2001

3.    
          Second Amendment to Lease dated December 12, 2001

4.    
          Third Amendment to Lease dated May 20, 2002

5.    
          Fourth Amendment to Lease dated March 15, 2005

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EXHIBIT B

# [ATTACH ORCHARD
COMMERCIAL, INC.

# HAZARDOUS MATERIALS QUESTIONNAIRE]

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EXHIBIT C

De-ionized Water
Specifications:

`Resistivity       Sustained 18.1 Mohms @ 25(Degree)C as measured with flow-through cell and meter per
                  ASTM-D-1125.  Reported as meg ohm(s) per cm. 17.9 Mohms @ 25(Degree)C minimum

Bacteria          Less than 5 colony forming units per 100 ml tested per ASTM-F-6065T.

TOC:              Total oxidizable carbons less than 5 ppb as measured by a Sievers TOC analyzer. Reported as parts per
                  billion. Excluding THMs.

Silica:           Less than 5 ppb. Reported as parts per billion.`