Document:

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                                                                     Exhibit 4.4

THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS, AND NO INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED,
ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS (i) THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH
TRANSACTION INVOLVING SAID SECURITIES, OR (ii) THE ISSUER RECEIVES AN OPINION OF
LEGAL COUNSEL FOR THE HOLDER OF SAID SECURITIES SATISFACTORY TO THE ISSUER
STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.

                                                             WARRANT TO PURCHASE
                                                          SHARES OF COMMON STOCK

                             STOCK PURCHASE WARRANT
                       TO PURCHASE SHARES OF COMMON STOCK
                                       OF
                             CASCADE MICROTECH, INC

         For value received, Cascade Microtech, Inc., an Oregon corporation (the
"Company"), grants to Veber Investments V, L.L.C. (the "Initial Holder") the
right, subject to the terms of this Stock Purchase Warrant (this "Warrant"), to
purchase at any time and from time to time during the period commencing on the
"Initial Exercise Date" (as defined below) and ending on the "Expiration Date"
(as defined below), that number of fully paid and nonassessable shares of Common
Stock of the Company as determined in accordance with Section 2 below. The
exercise price shall be $3.80 per share (the "Exercise Price"). The Exercise
Price and the number of shares that may be purchased are subject to adjustment
under the terms of this Warrant.

SECTION 1. DEFINITIONS

         As used in this Warrant, unless the context otherwise requires:

         "COMMON STOCK" means the Company's common stock as authorized on the
date of this Warrant, and any other securities into which or for which any of
the securities described above may be converted or exchanged pursuant to a plan
or reorganization, merger, sale of assets or otherwise.

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         "COMPANY" means Cascade Microtech, Inc. and any corporation or entity
that shall succeed to or assume the obligations of Cascade Microtech, Inc.
hereunder.

         "EXERCISE DATE" means any date when this Warrant is exercised, in whole
or in part, in the manner indicated in Sections 3.1 and 3.2 below.

         "EXERCISE PRICE" means the price at which Warrant Shares may be
purchased upon exercise of this Warrant, as stated in the introductory
paragraph; PROVIDED, HOWEVER, that if an adjustment is required under Section
8.1 of this Warrant, then the "Exercise Price" means, after such adjustment, the
price at which each Warrant Share may be purchased upon exercise of this Warrant
immediately after the last such adjustment.

         "EXPIRATION DATE" means 12:00 midnight (Portland time) on the earlier
of (i) December 31, 2003, or (ii) the date specified in Section 8.1(d) hereof.

         "HOLDER" means the Initial Holder or, upon assignment of this Warrant
by the Initial Holder (or a subsequent Holder), such assignee.

         "INITIAL EXERCISE DATE" means the date of this Warrant.

         "INITIAL HOLDER" has the meaning specified in the introductory
paragraph.

         "PERSON" means an individual, corporation, partnership, trust, joint
venture or other form of business entity.

         "SECURITIES ACT" means the Securities Act of 1933, as amended from time
to time, and all rules and regulations promulgated thereunder, or any act, rules
or regulations which replace the Securities Act or any such rules and
regulations.

         "SUBSEQUENT WARRANT" has the meaning specified in Section 3.2(c) below.

         "WARRANT SHARE(S)" means any share(s) of Common Stock, or other
securities, issued or issuable upon exercise of this Warrant.

SECTION 2. NUMBER OF SHARES SUBJECT TO WARRANT

         2.1      IMMEDIATELY EXERCISABLE. This Warrant is exercisable at any
time with respect to 15,000 Warrant Shares.

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         2.2      EXERCISABLE ONLY UPON COMPLETION OF EQUITY OR DEBT FINANCING.
If, during the term of the Engagement Agreement between the Company and Veber
Investments V, L.L.C. dated December 3, 1998 (the "Engagement Agreement") and
for a period of one year thereafter, the Company completes a debt or equity
financing pursuant to which the Company issues its debt or equity securities
solely in exchange for cash, then this Warrant shall be exercisable for (i)
30,000 Warrant Shares for each $1.0 million dollars raised in such financing
from parties contacted on behalf of the Company by Veber Investments V, L.L.C.,
up to a total of $2.0 million, and (ii) 15,000 Warrant Shares for each
additional $1.0 million raised in excess of $2.0 million from parties contacted
on behalf of the Company by Veber Investments V, L.L.C. For purposes of
determining whether cash has been received in a financing from one or more
parties contacted on behalf of the Company by Veber Investments V, L.L.C., Veber
Investments V, L.L.C. shall deliver to the Company, on the first day of each
week in which the Engagement Agreement remains in effect, an updated list of the
persons and entities which Veber Investments V, L.L.C. has contacted on behalf
of the Company, which list shall set forth (i) the name, address and phone
number of the person or entity contacted, and (ii) a short summary of the
current status of each party's interest in a possible transaction with the
Company.

         2.3      EXERCISABLE ONLY UPON COMPLETION OF A MERGER, SALE OR
TECHNOLOGY LICENSE TRANSACTION. If the Company completes a merger, sale or
technology license transaction, as those terms are defined below, with any party
that Veber Investments V, L.L.C. provides substantive consulting services to the
Company under the Engagement Agreement, including but not limited to
Electroglas, Inc., then this Warrant shall be exercisable for 10,000 Warrant
Shares at any time following the completion of such transaction. For purposes of
this Section 2.3, the term "merger or sale transaction" shall mean (i) a merger
or consolidation of the Company with or into any other corporation or any other
entity or person, other than a merger of the Company into a wholly owned
subsidiary corporation solely for the purpose of reincorporating the Company in
another state, (ii) a merger, consolidation or any other corporate
reorganization, reclassification or recapitalization of the Company as a result
of which the holders of the outstanding capital stock of the Company immediately
prior to any such event shall own less than a majority of the outstanding
capital stock of the Company on an as-converted basis immediately after the
consummation of any such event, (iii) any sale, lease, assignment, transfer or
other conveyance of 50% or more of the assets of the Company, or (iv) any sale
or transfer of a principal business unit of the Company. For purposes of this
Section 2.3, the term "technology license" shall mean the execution of a license
or use agreement with a third party granting such party the right to commercial
use of one or more of the principal technologies of the Company in exchange for
the payment of cash or other consideration to the Company with an expected value
of not less than $1,000,000.

SECTION 3. DURATION AND EXERCISE OF WARRANT

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         3.1      EXERCISE PERIOD. Subject to the provisions hereof, this
Warrant may be exercised at any time and from time to time in whole or in part
during the period commencing on the Initial Exercise Date and ending on the
Expiration Date. After the Expiration Date, this Warrant shall become void and
all rights to purchase Warrant Shares hereunder shall thereupon cease.

         3.2      METHOD OF EXERCISE AND PAYMENT.

                  (a)      METHOD OF EXERCISE. Subject to Section 3.1 hereof and
compliance with all applicable Federal and state securities laws, the purchase
right represented by this Warrant may be exercised, in whole or in part, by the
Holder by (i) surrender of this Warrant and delivery of the Exercise Form
attached hereto as Exhibit A, duly executed, at the principal office of the
Company, and (ii) payment to the Company of an amount equal to the product of
the then applicable Exercise Price multiplied by the number of Warrant Shares
then being purchased.

                  (b)      CONVERSION RIGHT. In lieu of exercising this Warrant
as specified in Section 3.2(a), Holder may from time to time convert this
Warrant, in whole or in part, into a number of Warrant Shares determined by
dividing (i) the aggregate fair market value of the Warrant Shares issuable upon
exercise of this Warrant, minus the aggregate Exercise Price of such Warrant
Shares by (ii) the fair market value of one Warrant Share. The fair market value
of the Warrant Shares shall be determined as follows: If the Company's Common
Stock is traded in a public market, the fair market value of the Warrant Shares
shall be the closing price of the Common Stock reported for the business day
immediately before Holder delivers its Exercise Form to the Company. If the
Company's Common Stock is not traded in a public market, the Board of Directors
of the Company shall determine fair market value in its reasonable good faith
judgment.

                  (c)      METHOD OF PAYMENT. Payment shall be made either (i)
by check drawn on a United States bank and for United States funds made payable
to the Company, (ii) by wire transfer of United States funds for the account of
the Company, (iii) by the cancellation of indebtedness of the Company to the
Holder, but only at the option of the Holder, or (iv) any combination of the
foregoing at the option of the Holder.

                  (d)      DELIVERY OF CERTIFICATE. In the event of any exercise
of the purchase right represented by this Warrant, certificates for the Warrant
Shares so purchased shall be delivered to the Holder within thirty (30) days of
delivery of the Exercise Form and payment and, unless this Warrant has been
fully exercised or has expired, a new warrant representing the portion of the
Warrant Shares with respect to which this Warrant shall not then have been
exercised (the "Subsequent Warrant") shall also be issued to the Holder within
such thirty (30)-day period.

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         3.3      SECURITIES ACT COMPLIANCE/RESTRICTIONS UPON TRANSFER. Unless
the issuance of the Warrant Shares shall have been registered under the
Securities Act, as a condition of its delivery of certificates for the Warrant
Shares, the Company may require the Holder (including the transferee of the
Warrant Shares in whose name the Warrant Shares are to be registered) to deliver
to the Company, in writing, representations regarding the Holder's
sophistication, investment intent, acquisition for his own account and such
other matters as are reasonable and customary for purchasers of securities in an
unregistered private offering of securities. The Company may place conspicuously
upon each Subsequent Warrant and upon each certificate representing the Warrant
Shares a legend substantially in the following form, the terms of which are
agreed to by the Holder (including any and all transferees):

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
         APPLICABLE STATE SECURITIES LAWS, AND NO INTEREST THEREIN MAY
         BE OFFERED, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
         HYPOTHECATED UNLESS (i) THERE IS AN EFFECTIVE REGISTRATION
         STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS
         COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES, OR
         (ii) THE ISSUER RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE
         HOLDER OF SAID SECURITIES SATISFACTORY TO THE ISSUER STATING
         THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.

The Company need not register a transfer of this Warrant or the Warrant Shares
unless the conditions specified in such legend are satisfied. Subject to the
foregoing transfer restrictions set forth in this Section 3.3, this Warrant is
transferable, in whole or in part, on the books of the Company, upon surrender
of this Warrant to the Company, together with a written assignment duly executed
by the Holder and delivery of funds sufficient to pay any transfer taxes payable
by reason of such transfer.

         3.4      TAXES. The Company will pay any stamp, transfer or similar tax
that may be payable in respect of the issuance of the Warrant Shares.

SECTION 4. VALIDITY AND RESERVATION OF WARRANT SHARES

         The Company represents and warrants that all Warrant Shares issued upon
exercise of this Warrant will be validly issued, fully paid nonassessable and
not subject to preemptive or similar rights. The Company agrees that, as long as
this Warrant may be exercised, the Company will have authorized and reserved for
issuance upon exercise of this Warrant a sufficient number of shares of Common
Stock to provide for exercise in full of this Warrant.

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SECTION 5. FRACTIONAL SHARES

         No fractional Warrant Shares shall be issued upon the exercise of this
Warrant, and the number of Warrant Shares to be issued shall be rounded to the
nearest whole number.

SECTION 6. LIMITED RIGHTS OF WARRANT HOLDER

         The Holder shall not, solely by virtue of being the Holder of this
Warrant, have any of the rights of a shareholder of the Company, either at law
or equity, until this Warrant shall have been exercised.

SECTION 7. LOSS OF WARRANT

         Upon receipt by the Company of satisfactory evidence of the loss,
theft, destruction or mutilation of this Warrant and either (in the case of
loss, theft or destruction) reasonable indemnification and a bond satisfactory
to the Company if requested by the Company or (in the case of mutilation) the
surrender of this Warrant for cancellation, the Company will execute and deliver
to the Holder, without charge, a new warrant of like denomination.

SECTION 8. CERTAIN ADJUSTMENTS OF EXERCISE PRICE

         8.1      ADJUSTMENT OF EXERCISE PRICE. The number, class and Exercise
Price of securities for which this Warrant may be exercised are subject to
adjustment from time to time upon the happening of certain events as hereinafter
provided:

                  (a)      STOCK SPLITS AND STOCK DIVIDENDS. In the event the
Company should at any time or from time to time after the date hereof fix a
record date for the effectuation of a split or subdivision of the outstanding
shares of Common Stock or the determination of holders of Common Stock entitled
to receive a dividend or other distribution payable in additional shares of
Common Stock or other securities or rights convertible into, or entitling the
holder thereof to receive directly or indirectly, additional shares of Common
Stock (hereinafter referred to as "Common Stock Equivalents") without payment of
any consideration by such holder for the additional shares of Common Stock or
the Common Stock Equivalents (including the additional shares of Common Stock
issuable upon conversion or exercise thereof), then, as of such record date (or
the date of such dividend, distribution, split or subdivision if no record date
is fixed), the Exercise Price shall be appropriately decreased and the number of
shares of Common Stock issuable upon exercise of this Warrant shall be increased
in proportion to such increase of the aggregate of shares of Common Stock
outstanding and those issuable with respect to such Common Stock Equivalents.

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                  (b)      COMBINATIONS. If the number of shares of Common Stock
outstanding at any time after the date hereof is decreased by a combination of
the outstanding shares of Common Stock, then, following the record date of such
combination, the Exercise Price shall be appropriately increased and the number
of shares of Common Stock issuable upon exercise of this Warrant shall be
decreased in proportion to such decrease in outstanding shares.

                  (c)      RECAPITALIZATIONS. If at any time or from time to
time there shall be a merger, consolidation, reclassification, reorganization or
other change in the capital structure of the Company (a "Recapitalization")
(other than an event described in Sections 8.1(a) or 8.1(b) above or Section
8.1(d) below), provision shall be made so that the Holder shall thereafter be
entitled to receive upon exercise of this Warrant the number of shares of stock
or other securities or property of the Company, or otherwise, to which a holder
of Common Stock deliverable upon exercise would have been entitled on such
Recapitalization. In any such case, appropriate adjustment shall be made in
application of the provisions of Section 8.1 with respect to the rights of the
Holder after the Recapitalization to the end that the provisions of Section 8.1
(including adjustment of the Exercise Price then in effect and the number of
shares purchasable upon exercise of this Warrant) shall be applicable after that
event, as nearly equivalent as may be practicable, in relation to any shares of
stock or other property thereafter deliverable upon the exercise of this
Warrant.

                  (d)      OTHER RECAPITALIZATIONS. Notwithstanding the
foregoing, in the event of (i) a the dissolution or complete liquidation of the
Company, (ii) a Recapitalization resulting in the shareholders immediately
preceding such Recapitalization, as a group, holding less than a majority of the
outstanding capital stock of the Company immediately following such
Recapitalization, including such Recapitalizations where the Company will not be
the surviving corporation, or (iii) the sale of all or substantially all of the
assets of the Company, the Warrant shall expire and become void and all rights
to purchase Warrant Shares hereunder shall cease following the expiration of the
notice period specified in Section 8.1(e) below.

                  (e)      NOTICE. The Company shall provide the Holder with at
least 20 days' prior written notice of the date when any such change in the
capital structure of the Company as described in Section 8.1 shall take place.

                  (f)      NO IMPAIRMENT. The Company will not, by amendment of
its Articles of Incorporation or through any Recapitalization, transfer of
assets, dissolution or liquidation, issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance hereunder
by the Company, but will at all times in good faith assist in the carrying out
of all the provisions of Section 8.1 and in the taking of all such action as may
be necessary or appropriate in order to protect the exercise rights of the
Holder against impairment.

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                  (g)      MINIMUM ADJUSTMENT NOT REQUIRED. Anything in Section
8.1 to the contrary notwithstanding, the Company shall not be required, except
as hereinafter provided, to make any adjustment of the Exercise Price in any
case in which the amount by which such Exercise Price would be increased or
reduced, in accordance with the foregoing provisions, would be less than $0.01
per share, but in such a case, any adjustment that would otherwise be required
to be made will be carried forward and made at the time and together with the
next subsequent adjustment.

         8.2      NOTICE OF ADJUSTMENT. Whenever an event occurs requiring any
adjustment to be made pursuant to Section 8.1, the Company shall promptly file
with its Secretary or an Assistant Secretary at its principal office and with
its stock transfer agent, if any, a certificate of its chief executive officer
specifying such adjustment, setting forth in reasonable detail the acts
requiring such adjustment, and stating such other facts as shall be necessary to
show the manner and figures used to compute such adjustment. Such chief
executive officer's certificate shall be made available at all reasonable times
for inspection by the Holder. Promptly (but in no event more than thirty (30)
days) after each such adjustment, the Company shall give a copy of such
certificate by certified mail to the Holder.

SECTION 9. SUBDIVISION OF WARRANT

         At the request of the Holder in connection with a transfer of a portion
of this Warrant, upon surrender of this Warrant for such purpose to the Company
at its principal office, the Company, at its expense (except for any transfer
tax payable), will issue and exchange therefor new Warrants of like tenor and
date representing in the aggregate the amount of the Warrant Shares.

SECTION 10.  REPRESENTATIONS AND WARRANTIES BY THE HOLDER

         The Holder represents and warrants to the Company as follows:

         10.1     This Warrant and the Warrant Shares issuable upon exercise
thereof are being acquired for its own account, for investment and not with a
view to, or for resale in connection with, any distribution or public offering
thereof within the meaning of the Securities Act. Upon exercise of this Warrant,
the Holder shall, if so requested by the Company, confirm in writing, in a form
satisfactory to the Company, that the securities issuable upon exercise of this
Warrant are being acquired for investment and not with a view toward
distribution or resale.

         10.2     The Holder understands that the Warrant and the Warrant Shares
have not been registered under the Securities Act by reason of their issuance in
a transaction exempt from the registration and prospectus delivery requirements
of the Securities Act pursuant to Section 4(2) thereof, and that they must be
held by the Holder indefinitely, and that the Holder must therefore

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bear the economic risk of such investment indefinitely, unless a subsequent
disposition thereof is registered under the Securities Act or is exempted from
such registration.

         10.3     The Holder has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of the
purchase of this Warrant and the Warrant Shares purchasable pursuant to the
terms of this Warrant and of protecting its interests in connection therewith.

         10.4     The Holder is able to bear the economic risk of the purchase
of the Warrant Shares pursuant to the terms of this Warrant.

SECTION 11. REGISTRATION RIGHTS

         The Holder shall have the right to have the Warrant Shares registered
for sale with the Securities and Exchange Commission in accordance with the
piggyback and Form S-3 registration rights set forth in Sections 1.3 and 1.5,
respectively, of the Investor Rights Agreement dated May 1, 1990 (the "Investor
Rights Agreement"), the pertinent portions of which are attached hereto and
incorporated herein as Exhibit B. Consistent with the allocation provisions set
forth in Section 1.13 of the Investor Rights Agreement, Holder hereby
acknowledges that the registration rights granted in this Section 11 shall be
subordinate in priority and allocation to (i) the registration rights granted to
Hewlett-Packard Company and the "Founders" as that term is defined in the
Investor Rights Agreement attached hereto as Exhibit B, and (ii) unless
otherwise specified in writing, any other registration rights which the Company
may grant in the future, including but not limited to any registration rights
which may be granted to investors, strategic or joint venture partners and the
like in connection with a transaction in which the Company receives consulting
services from Veber Investments V, L.L.C. under the Engagement Agreement.
Further, Holder hereby acknowledges that in no event will Holder have
registration rights which are superior to the piggyback and Form S-3
registration rights granted under the Investor Rights Agreement.

SECTION 12. MISCELLANEOUS

         12.1     SUCCESSORS AND ASSIGNS. The provisions of this Warrant shall
be binding upon and inure to the benefit of the Company, the Holder and their
respective permitted successors and assigns hereunder.

         12.2     NOTICE. All notices and statements provided for herein shall
be in writing and shall be deemed given (i) three (3) days after deposit in the
U.S. mail if sent by Registered or Certified mail, postage prepaid, addressed to
the parties at their addresses set forth below; (ii) immediately upon personal
deliver to a party, (iii) if by courier, on the date that the courier warrants
that delivery will occur, or (iv) if by telex or facsimile, when receipt is
confirmed by

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the transmission equipment or acknowledged by the addressee. A party may change
its address by giving notice thereof to the other party as provided herein.

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IF TO THE COMPANY:                         IF TO THE HOLDER:

Cascade Microtech, Inc                     Veber Investments V, L.L.C.
Attention: Chief Financial Officer         4380 S.W. Macadam, Suite 250
2430 N.W. 206th Avenue                     Portland, OR 97201-6408
Beaverton, OR 97005

         12.3     APPLICABLE LAW. The validity, interpretation and performance
of this Warrant shall be governed by the laws of the State of Oregon.

         12.4     HEADINGS. The headings herein are for convenience only and are
not part of this Warrant and shall not affect the interpretation thereof.

         DATED this _____ day of December, 1998.

                                      CASCADE MICROTECH, INC.

                                      By   /s/ Randy Sadewic
                                         ---------------------------------------
                                           Randy Sadewic
                                           Chief Financial Officer

                                      VEBER INVESTMENTS V, L.L.C.

                                      By:  /s/ Gayle Veber
                                         ---------------------------------------
                                           Gayle Veber

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                                    EXHIBIT A

                               NOTICE OF EXERCISE

         1.       The undersigned hereby elects to purchase ___________ shares
of the Common Stock of Cascade Microtech, Inc. pursuant to the term of the
attached Stock Purchase Warrant dated December , 1998 (the "Warrant"), and
tenders herewith payment of the purchase price of such shares in full in the
following manner:

                  (a) ______  Check in the amount of $______________
                  (b) ______  Wire transfer in the amount of $____________
                  (c) ______  Cancellation of indebtedness in the
                              amount of $_________.

         2.       Please issue a certificate or certificates representing said
shares in the name of the undersigned or in such other name as is specified
below:

                        ---------------------------------
                                     (Name)

                        ---------------------------------

                        ---------------------------------
                                    (Address)

         3.       The undersigned represents that it has such knowledge and
experience in financial and business matters that it is capable of evaluating
the merits and risks of the purchase of shares of Common Stock of the Company
and that it is acquiring the shares solely for its own account and not as a
nominee for any other party and not with a view toward the resale or
distribution thereof except in compliance with applicable securities laws.

                                               ---------------------------------
                                               (Signature)

(Date)

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THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT
(OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT) AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION THEREFROM.

                             CASCADE MICROTECH, INC.
                               Series C Preferred
                             Stock Purchase Warrant
                           Expiring December 31, 2002

                                                  No. W-1     Beaverton, Oregon
                   Private Placement Number: 14732 # 11 0     December 16, 1999

                  Cascade Microtech, Inc. (the "COMPANY"), an Oregon
corporation, for value received, hereby certifies that Teachers Insurance and
Annuity Association of America, or registered assigns, is entitled to purchase
from the Company 250,000 duly authorized, validly issued, fully paid and
nonassessable shares of Series C Preferred Stock, par value $.01 per share, of
the Company (the "WARRANT SHARES") at an exercise price per share as determined
below (the "EXERCISE PRICE"), at any time or from time to time prior to 5:00
P.M., New York City time, on December 31, 2002, all subject to the terms,
conditions and adjustments set forth below in this Warrant.

                  Section 1. EXERCISE OF WARRANTS. (a) Upon the terms and
subject to the conditions set forth in this Warrant, the holder of the Warrant
(the "HOLDER") shall have the right, which may be exercised until 5:00 p.m., New
York City time, on December 31, 2002 (the "EXPIRATION TIME"), to receive from
the Company the number of fully paid and nonassessable Warrant Shares which the
Holder may at the time be entitled to receive upon exercise of this Warrant and
payment of the Exercise Price then in effect for such Warrant Shares.

                  The "EXERCISE PRICE" at any date of determination shall,
except as provided
<PAGE>

herein, be based on the total revenues of the Company from the sale of products
sold by the Company's Pyramid Probe Division (excluding contract research
revenues) as reflected in the general ledger of the Company for the calendar
year ending December 31, 2000, with such Exercise Price determined in accordance
with the following schedule:

                           (i) If revenues are greater than or equal to
                  $11,000,000, then the Exercise Price shall be $18.00 per
                  share.

                           (ii) If revenues are less than $11,000,000 and
                  greater than $4,700,000, then the Exercise Price is equal to
                  the sum of (x) $6.00, plus (y) .000001904 times the excess of
                  such revenue over $4,700,000 per share.

                           (iii) If revenues are less than or equal to
                  $4,700,000, then the Exercise Price shall be $6.00 per share.

                  The above determination shall be concluded by the Company not
later than 90 days after the calendar year ending December 31, 2000, PROVIDED,
however, that the initial Holder shall have the right to inspect the records and
books of the Company in connection with such determination made by the Company.
In the event that the initial Holder disputes the good faith determination by
the Company, then such determination shall be made by a nationally recognized
independent accounting firm selected unanimously by the Board of Directors of
the Company in good faith. In the event that the accounting firm's determination
is 105% or more than the determination of the Company, then all costs of such
independent determination shall be borne by the Company. Otherwise, all costs of
the independent determination shall be borne by the initial Holder.

                  As agreed to by the Company and the initial Holder, the
Exercise Price for any exercise of the Warrant prior to final determination of
the revenue of the Pyramid Probe Division for the calendar year 2000, is $10 per
share, without further adjustment, except as provided in Section 5 hereof, and
regardless of the revenue of the Pyramid Probe Division for the calendar year
2000.

                  (b) Warrants may be exercised upon surrender of this Warrant
to the Company at its principal office during normal business hours on any
business day, with the form of election to purchase attached hereto duly filled
in and signed and upon payment to the Company of the Exercise Price for each of
the Warrant Shares in respect of which such Warrants are then exercised. Payment
of the aggregate Exercise Price shall be made by wire transfer or certified or
official bank check to the order of the Company.
<PAGE>

                  (c) Each exercise of the Warrant shall be deemed to have been
effected immediately prior to the close of business on the business day on which
the Warrant shall have been surrendered to the Company as provided in Section
1(b), and at such time the person or persons in whose name or names any
certificate or certificates for Warrant Shares shall be issuable upon such
exercise as provided in Section 1(c) shall be deemed to have become the holder
or holders of record thereof.

                  (d) Subject to the provisions of Section 2 hereof, upon such
surrender of Warrants and payment of the aggregate Exercise Price, the Company
shall issue and cause to be delivered with all reasonable dispatch to or upon
the written order of the Holder and in such name or names as the Holder may
designate, (i) a certificate or certificates for the number of duly authorized,
validly issued, fully paid and nonassessable Warrant Shares to which such Holder
shall be entitled upon such exercise plus, in lieu of any fractional share to
which such Holder would otherwise be entitled, cash in an amount equal to the
same fraction of the market price per Warrant Share on the business day next
preceding the date of such exercise, and (ii) in case such exercise is in part
only, a new Warrant or Warrants of like tenor, calling in the aggregate on the
face or faces thereof for the number of Warrant Shares to the number of such
shares called for on the face of the Warrant minus the number of such shares
designated by the Holder upon such exercise as provided in Section 1(b);
PROVIDED that if any consolidation, merger, transfer or lease of assets is
proposed to be effected by the Company as described in Section 5 hereof, or a
tender offer or an exchange offer for Warrant Shares shall be made, upon such
surrender of Warrants and payment of the Exercise Price as aforesaid, the
Company shall, as soon as possible, but in any event not later than three
business days thereafter, issue and cause to be delivered the full number of
Warrant Shares issuable upon the exercise of such Warrants in the manner
described in this sentence and/or any other consideration to be issued to such
Holder pursuant to Section 5 hereof. Such certificate or certificates shall be
deemed to have been issued and any person so designated to be named therein
shall be deemed to have become a holder of record of such Warrant Shares as of
the date of the surrender of such Warrants and payment of the Exercise Price.

                  (e) The Warrants shall be exercisable, at the election of the
holders thereof, either in full or from time to time in part, and, in the event
that a certificate evidencing Warrants is exercised in respect of fewer than all
of the Warrant Shares issuable upon such exercise at any time prior to the date
of expiration of the Warrants, a new certificate evidencing the remaining
Warrant or Warrants will be issued and delivered pursuant to the provisions of
Section 1(d).

                  Section 2.        PAYMENT OF TAXES.  The Company will pay all
documentary
<PAGE>

stamp taxes attributable to the initial issuance of Warrant Shares upon the
exercise of Warrants; PROVIDED that the Company shall not be required to pay any
tax or taxes which may be payable in respect of any transfer involved in the
issue of any Warrant or any certificates for Warrant Shares in a name other than
that of the registered Holder, and the Company shall not be required to issue or
deliver such Warrant or certificates for Warrant Shares unless or until the
person or persons requesting the issuance thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid.

                  Section 3. MUTILATED OR MISSING WARRANT. Upon receipt by the
Company of evidence satisfactory to it of the loss, theft, destruction or
mutilation of, and (a) in the case of loss, theft or destruction, reasonable
indemnity (which in the case of the initial Holder or another institutional
Holder, may be such person's own unsecured agreement of indemnity), and (b) in
the case of mutilation, upon surrender and cancellation of this Warrant, the
Company will make and deliver in lieu of this Warrant a new Warrant of the same
series and of like tenor of this Warrant.

                  Section 4. RESERVATION OF WARRANT SHARES AND CONVERSION
SHARES. (a) The Company shall at all times reserve and keep available, free from
preemptive rights, out of the aggregate of its authorized but unissued Series C
Preferred Stock or its authorized and issued Series C Preferred Stock held in
its treasury, for the purpose of enabling it to satisfy any obligation to issue
Warrant Shares upon exercise of Warrants, the maximum number of shares of Series
C Preferred Stock which may then be deliverable upon the exercise of all
outstanding Warrants. The Company covenants that all Warrant Shares which may be
issued upon exercise of Warrants shall be duly authorized and will, upon payment
of the Exercise Price therefor and the issuance thereof, be validly issued,
fully paid, nonassessable with no liability on the part of the Holders thereof,
free of preemptive rights, free from all taxes and free from all liens, charges
and security interests, created by or through the Company, with respect to the
issue thereof.

                  (b) The Company will at all times reserve and keep available,
free from preemptive rights, out of the aggregate of its authorized but unissued
Common Stock or its authorized and issued Common Stock held in its treasury, for
the purpose of enabling it to satisfy any obligation to issue Common Stock upon
conversion of Series C Preferred Stock issued or issuable upon exercise of
Warrants, the maximum number of shares of Common Stock (the "CONVERSION SHARES")
which may then be deliverable upon the conversion of all Series C Preferred
Stock issuable upon exercise of all outstanding Warrants. The Company covenants
that all Conversion Shares which may be issued thereby, be fully paid,
nonassessable, free of preemptive rights, free from all taxes and free from all
liens, charges and security interests, created by or through the Company,
<PAGE>

with respect to the issue thereof.

                  Section 5. REORGANIZATION OF THE COMPANY. (a) CONSOLIDATION,
MERGER, SALE OF ASSETS, REORGANIZATION, ETC. In case at any time the Company
shall be a party to any transaction (including without limitation a merger,
consolidation, sale or lease of all or substantially all of the Company's assets
or recapitalization of the Series C Preferred Stock) in which the previously
outstanding Series C Preferred Stock shall be changed into or exchanged for
different securities of the Company or changed into or exchanged for common
stock or other securities of another corporation or interests in a noncorporate
entity or other property (including cash) or any combination of any of the
foregoing (each such transaction being hereinafter referred to as the
"TRANSACTION") then, as a condition to the consummation of the Transaction,
lawful and adequate provisions shall be made so that, upon the basis and terms
and in the manner provided in this Section 5, the Holder, upon the exercise of
the Warrant, shall be entitled to receive, in lieu of the Series C Preferred
Stock issuable upon such exercise prior to such consummation, the stock and
other securities, cash and property to which the Holder would have been entitled
upon the consummation of the Transaction if the Holder had exercised the Warrant
immediately prior thereto, subject to adjustments (subsequent to such
consummation) as nearly equival ent as possible to the adjustments provided for
under the terms of the Series C Preferred Stock.

                  (b) Notwithstanding anything contained herein to the contrary,
the Company will not effect any Transaction unless, prior to the consummation
thereof, each corporation or entity (other than the Company) which may be
required to deliver any stock, securities, cash or property upon the exercise of
the Warrant as provided herein shall assume, by written instrument delivered to,
and reasonably satisfactory to, the Holder, (i) the obligations of the Company
hereunder (and if the Company shall survive the consummation of such
Transaction, such assumption shall be in addition to, and shall not release the
Company from, any continuing obligations of the Company hereunder) and (ii) the
obligation to deliver to the Holder such shares of stock, securities, cash or
property as, in accordance with the foregoing provisions, the Holder may be
entitled to receive, and such corporation or entity shall have similarly
delivered to the Holder an opinion of counsel for such corporation or entity,
which counsel shall be reasonably satisfactory to the Holder, stating that the
Warrant shall thereafter continue in full force and effect and the terms hereof
shall be applicable to the stock, securities, cash or property which such
corporation or entity may be required to deliver upon any conversion of any
Warrants or the exercise of any rights pursuant hereto.
<PAGE>

                  (c) Upon any liquidation, dissolution or winding up of the
Company, the Holder shall receive such cash or property (less the Exercise
Price) which the Holder would have been entitled to receive upon the happening
of such liquidation, dissolution or winding up had the Warrant been exercised in
full and the shares of Series C Preferred Stock in respect of such exercise
issued immediately prior to the occurrence of such liquidation, dissolution or
winding-up.

                  Section 6. CHANGES AFFECTING THE SERIES C PREFERRED STOCK. If
the Company at any time while this Warrant, or any portion thereof, remains
outstanding and unexpired shall pay any dividend or make any other distribution
on the Series C Preferred Stock payable in shares of Series C Preferred Stock or
shall split, subdivide or combine the Series C Preferred Stock into a different
number of securities of the same class, the Exercise Price for such securities
shall be proportionately decreased in the case of a stock dividend, split or
subdivision or proportionately increased in the case of a combination and the
number of the securities as to which purchase rights under this Warrant exist
shall be increased or decreased proportionately in accordance with such stock
dividend, split, subdivision or combination.

                  Section 7. NOTICES OF CORPORATE ACTION.  In the event of

                  (a) any taking by the Company of a record of the holders of
         its Series C Preferred Stock for the purpose of determining the holders
         thereof who are entitled to receive any right,

                  (b) any subdivision of outstanding shares of Series C
Preferred Stock into a larger number of shares of Series C Preferred Stock, or
any combination of such shares into smaller number of shares of Series C
Preferred Stock,

                  (c) any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
consolidation or merger involving the Company and any other person or any
transfer of all or substantially all the assets of the Company to any other
person, or

                  (d)      any voluntary or involuntary dissolution,
         liquidation or winding-up of the Company,
<PAGE>

the Company shall mail to each Holder a notice specifying (I) the date or
expected date on which any such record is to be taken for the purpose of such
right, and (II) the date or expected date on which any such reorganization,
reclassification, recapitalization, consolidation, merger, transfer,
dissolution, liquidation or winding-up is to take place and the time, if any
such time is to be fixed, as of which the holders of record of Series C
Preferred Stock shall be entitled to exchange their Warrant Shares for the
securities or other property deliverable upon such reorganization,
reclassification, recapitalization, consolidation, merger, transfer,
dissolution, liquidation or winding-up. Such notice shall be mailed at least 15
business days prior to the date specified in subdivisions (i) and (ii) above.

                  Section 8. OWNERSHIP, TRANSFER AND SUBSTITUTION OF THE
WARRANT. OWNERSHIP OF WARRANT. (a) The Company or such designee as the Company
shall indicate to the initial Holder by prompt written notice, shall have an
option to repurchase the Warrant if the initial Holder proposes to sell, assign,
pledge, encumber, transfer or otherwise dispose of for value the Warrant to any
party that (I) is in the business of manufacturing, distributing or selling any
product or service which competes with any product or service of the Company,
(II) is in the business of manufacturing, distributing or selling any
semiconductor test or measurement product or service to any party that
manufactures semiconductors or integrated circuits, whether or not such
semiconductor test or measurement product or service competes with any products
or services of the Company, (III) is in the business of manufacturing,
distributing or selling semiconductors or integrated circuits, or (IV) is an
affiliate of any of the foregoing unless the affiliate is a "qualified
institutional buyer" as that term is defined in Rule 144A(a)(1) of the
Securities Act of 1933, as amended, or any similar successor federal statute and
the rules and regulations thereunder, all as the same shall be in effect from
time to time.

                  (b) The Company may treat the person in whose name the
Warrant, or any Warrant or Warrants issued in substitution therefor, is
registered on the register kept at the principal office of the Company as the
owner and the Holder thereof for all purposes, notwithstanding any notice to the
contrary, except that, if and when any Warrant is properly assigned in blank,
the Company may (but shall not be obligated to) treat the bearer thereof as the
owner of such Warrant for all purposes, notwithstanding any notice to the
contrary. A Warrant, if properly assigned, may be exercised by a new Holder
without first having a new Warrant issued.

                  Section 9. TRANSFER AND EXCHANGE OF THE WARRANT. Upon the
surrender of the Warrant, properly endorsed, for registration of transfer or for
exchange at the principal office of the Company, the Company at its expense
shall execute and deliver to or upon the order of the Holder thereof a new
Warrant or Warrants of like tenor, in the
<PAGE>

name of such Holder or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct, calling in the aggregate on the face or
faces thereof for the number of shares of Series C Preferred Stock called for on
the face or faces of the Warrant or Warrants so surrendered.

                  Section 10. REMEDIES. The Company stipulates that the remedies
at law of the Holder in the event of any default or threatened default by the
Company in the performance of or compliance with any of the terms of the Warrant
are not and shall not be adequate and hereby agrees, to the fullest extent
permitted by law, (A) such terms may be specifically enforced by a decree for
the specific performance of any agreement contained herein or by an injunction
against a violation of any of the terms hereof or otherwise, and (B) to waive
the defense in any action for specific performance that a remedy at law would be
adequate.

                  Section 11. NO RIGHTS OR LIABILITIES AS STOCKHOLDER. Nothing
contained in the Warrant shall be construed as conferring upon the Holder hereof
any rights as a stockholder of the Company or as imposing any liabilities on
such Holder to purchase any securities or as a stockholder of the Company,
whether such liabilities are asserted by the Company or by creditors or
stockholders of the Company or otherwise.

                  Section 12. NOTICES. All notices and other communications
under the Warrant, except notices of the exercise of any Warrant (which shall be
effected in the manner provided in Section 1), shall be in writing and shall be
mailed by registered or certified mail, return receipt requested, addressed as
follows or to such other address as such party may have designated to the other
in writing:

                  (a)      if to the initial Holder, at:

                           Teachers Insurance and Annuity Association of America
                           730 Third Avenue
                           New York, New York 10017
                           Attention: Robert Belke
                                      Private Direct Equity Team

                                    or

                  (b)      if to the Company, to it at:

                           Ater Wynne L.L.P.
                           222 S.W. Columbia, Suite 1800

<PAGE>

                           Portland, OR  97201
                           Attn:  Jack W. Schifferdecker, Jr., Esq.

                                    or

                  (c)      if to any other Holder, as such Holder may have
                           specified in writing to the Company.

                  Section 13. GOVERNING LAW.  (a)  This Agreement shall be
governed by and construed under the laws of the State of New York as applied
to agreements among New York residents entered into and to be performed
entirely within New York.

                  (b) Notwithstanding the other provisions of this Warrant, this
Warrant is subject to the limitations (including, without limitation, any
restrictions on transfer) and rights
applicable thereto specified in the Investors' Rights Agreement.

                  Section 14. MISCELLANEOUS. The Warrant and any term hereof may
be changed, waived, discharged or terminated (other than the expiration of this
Warrant pursuant to its terms) only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought. The agreements of the Company contained in the Warrant other than
those applicable solely to the Warrant and the Holder thereof shall inure to the
benefit of and be enforceable by any Holder or Holders at the time of any
Warrant Shares issued upon the exercise of the Warrant, whether so expressed or
not. The section headings in the Warrant are for purposes of convenience only
and shall not constitute a part hereof.
<PAGE>

                  IN WITNESS WHEREOF, Cascade Microtech, Inc. has caused this
Warrant to be duly executed, as of December 16, 1999.

                                                     CASCADE MICROTECH, INC.

                                         By: /s/ Craig M. Swanson
                                            ------------------------------------
                                            Name: Craig M. Swanson
                                            Title: Vice President - Finance and
                                                   Chief Financial Officer
<PAGE>

                          FORM OF ELECTION TO PURCHASE

(To be Executed Upon Exercise of Warrant)

To:____________________

           The undersigned hereby irrevocably elects to exercise Warrants for,
and purchases thereunder, ____* shares of Series C Preferred Stock of Cascade
Microtech, Inc. and has tendered tenders payment for such shares to the order of
Cascade Microtech, Inc. in the amount of $______ per share of Series C Preferred
Stock in accordance with the terms
hereof.

           The undersigned requests that a certificate for such shares be
registered in the name of _______________, whose address is
_____________________, and that such shares be delivered to __________________,
whose address is ____________________.

           If said numbers of shares is less than all of the shares of Series C
Preferred Stock purchasable under the Warrant, the undersigned requests that a
new Warrant representing the remaining balance of such Warrants be registered in
the name of _______________, whose address is _____________________, and that
such shares be delivered to __________________, whose address is
____________________.

Dated:_______________________

                                    Your Signature:      [HOLDER]**
                                                         [Address]

--------

*   Insert here the number of shares called for on the face of the Warrant (or,
    in the case of a partial exercise, the portion thereof as to which the
    Warrant is being exercised). In the case of a partial exercise, a new
    Warrant or Warrants shall be issued and delivered, representing the
    unexercised portion of the Warrant, to the holder surrendering the same.
**  Signature must conform in all respects to name of holder as specified on the
    face of the Warrant.

                                                 By:_________________________
                                                    Name:
                                                    Title:
<PAGE>

                               FORM OF ASSIGNMENT

                 (To be executed only upon transfer of Warrant)

           For value received, the undersigned registered holder of the within
Warrant hereby sells, assigns and transfers unto ________________ the right
represented by such Warrant to purchase ______ shares of Series C Preferred
Stock of Cascade Microtech, Inc. to which such Warrant relates, and appoints
___________ Attorney to make such transfer on the books of Cascade Microtech,
Inc. maintained for such purpose, with full power of substitu tion in the
premises.

Dated: ______________

                                           [HOLDER]*
                                           [Address]

                                           By__________________________
                                               Name:
                                               Title:

Signed in the presence of:

------------------------------

------------------------------
*   Signature must conform in all respects to name of holder as specified on the
    face of the Warrant.

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