Document:

<P align="right">Exhibit 10.39</p>
<U><P ALIGN="CENTER">AMENDMENT NO. 1 TO <BR>
EMPLOYMENT AGREEMENT</P>
</U><P ALIGN="JUSTIFY">THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (this
"<U>Amendment</U>") is made and entered into as of August 21, 2003, between
Therma-Wave, Inc., a Delaware corporation (the "<U>Company</U>"), and Boris
Lipkin ("<U>Executive</U>") and amends that Employment Agreement, entered into
as of February 5, 2003, between the Company and Executive (the &quot;<U>Original
Agreement</U>&quot;).  All terms used herein but not defined herein shall have
the meanings given them in the Original Agreement.</P>
<P ALIGN="JUSTIFY">WHEREAS, the Company's Board of Directors wishes to amend the
Original Agreement to reward Executive for work well done as the Company's
President and Chief Executive Officer.</P>
<P ALIGN="JUSTIFY">THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:</P>
<OL>
<DIR>

<OL>

<P ALIGN="JUSTIFY"><LI><A NAME="_Ref27497756"><U>Amendment to Section 4</U>.
The following sentence shall be added to the end of Section 4:
&quot;Notwithstanding anything in the option agreements, the vesting of all of
Executive's options (whether granted on the date of this Agreement or a future
date) shall be accelerated and the options shall become immediately exercisable
upon a Change of Control (as defined below).&quot;</LI></P>
<P ALIGN="JUSTIFY"><LI><A NAME="_Ref27476192"><A
NAME="_Ref27561892"></A><U>Amendments to Section 5</U>. </LI></P>
<OL TYPE="a">

<P ALIGN="JUSTIFY"><LI><A NAME="_Ref27501852"></A>Section 5(b) and shall be
amended and restated as follows:</LI></P>
<P ALIGN="JUSTIFY">&quot;(b)&#9;If the Employment Period is terminated by the
Company without Cause or by Executive for Good Reason, Executive shall be
entitled to receive the Base Salary, the Automobile Allowance and those certain
benefits to which Executive shall be entitled under the Consolidated Omnibus
Budget Reconciliation Act of 1985 upon Executive's timely submission of
an appropriate application to the applicable insurance carrier and such
insurance carrier's acceptance of such application (the "<U>COBRA Benefits</U>")
to be paid for by the Company (collectively, the "<U>Severance Payment</U>"), in
each case until the date which is six (6) months after the date of such
termination (the "<U>Severance Period</U>"); provided that the portion of the
Bonus that Executive would have been entitled to receive for the fiscal year in
which the Severance Period terminates shall be reduced proportionately by the
ratio of the number of days of such fiscal year not included in the Severance
Period to the total number of days in such fiscal year.  If the Employment
Period is terminated by the Company without Cause or by Executive for Good
Reason at any time within 12 months following a Change of Control (as defined
below), Executive shall be entitled to receive the Severance Payment until the
date which is 12 months after the date of such termination (the "<U>Change of
Control Severance Period</U>"); provided, however, that Executive shall not be
entitled to receive any portion of his Bonus for the fiscal year in which the
Change of Control Severance Period terminates.  The Severance Payment will be
payable at such times as such payments would have been payable had Executive not
been terminated. Notwithstanding this provision, Executive shall be entitled to
receive the COBRA Benefits following the Severance Period or the Change of
Control Severance Period for the maximum time allowed under applicable law to
the extent Executive pays for such COBRA Benefits. Notwithstanding anything in
this Agreement to the contrary, the Company shall have no obligation to pay any
part or all of the Severance Payment if at any time during the Severance Period
or the Change of Control Severance Period Executive is in breach of Sections 6
through 9 hereof. If the Employment Period is terminated for any of the
foregoing reasons, the Severance Payment shall be reduced by fifty percent (50%)
of the amount of any compensation Executive receives in respect of any other
employment during the Severance Period or the Change of Control Severance
Period. Upon request from time to time, Executive shall furnish the Company with
a true and complete certificate specifying any such compensation due to or
received by him. As a condition to the Company's obligations (if any) to make
the Severance Payment pursuant to this Section 5(b), Executive will execute and
deliver a general release substantially in the form of Exhibit A attached
hereto.&quot;</P>
<P ALIGN="JUSTIFY"><LI>Clause (iv) of Section 5(h) shall be amended and restated
as follows:</LI></P></OL>

<P ALIGN="JUSTIFY">&quot;(v) after a Change of Control Executive (A) is not
subsequently offered a comparable position to that of President and Chief
Executive Officer with comparable Base Salary, Bonus and Benefits (a
`<U>Comparable Position</U>') or (B) is offered and accepts a Comparable
Position but, within 12 months of the Change of Control, terminates his
employment in such Comparable Position for any of the reasons listed in clauses
(i)-(iii) or (v) of this Section 5(h).&quot;</P>

<P ALIGN="JUSTIFY"><LI><U>Effect of Amendment</U>.  Except as herein expressly
amended, all terms, covenants and provisions of the Original Agreement are and
shall remain in full force and effect, and all references therein to the
&quot;Agreement&quot; shall henceforth refer to the Original Agreement as
amended by this Amendment.  This Amendment shall be deemed incorporated into,
and a part of, the Original Agreement.</LI></P>

<P ALIGN="JUSTIFY"><LI><U>Complete Agreement</U>.</A>  This Amendment, the
Original Agreement and those documents expressly referred to herein and therein
embody the complete agreement and understanding between the parties and
supersede and preempt any prior understandings, agreements or representations by
or among the parties, written or oral, which may have related to the subject
matter hereof in any way.</LI></P>

<P ALIGN="JUSTIFY"><LI><U>Successors and Assigns</U>.  This Amendment is
intended to bind and inure to the benefit of and be enforceable by Executive and
the Company and their respective heirs, successors and assigns, except that
Executive may not assign his rights or delegate his obligations hereunder
without the prior written consent of the Company.</LI></P>

<P ALIGN="JUSTIFY"><LI><U>Choice of Law</U>.  All issues and questions
concerning the construction, validity, enforcement and interpretation of this
Agreement and the exhibits and schedules hereto shall be governed by, and
construed in accordance with, the laws of the State of California, without
giving effect to any choice of law or conflict of law rules or provisions
(whether of the State of California or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
California.</LI></P>

<P ALIGN="JUSTIFY"><LI><U>Amendment and Waiver</U>.  The provisions of this
Amendment or the Original Agreement may be amended or waived only with the prior
written consent of the Company and Executive, and no course of conduct or
failure or delay in enforcing the provisions of this Agreement shall affect the
validity, binding effect or enforceability of this Amendment or the Original
Agreement.</LI></P></OL>
</DIR>
</OL>

<P ALIGN="JUSTIFY">&#9;The undersigned have executed this Amendment No. 1 to
Employment Agreement as of August 21, 2003.</P>
<P ALIGN="JUSTIFY"></P>
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<B><P ALIGN="JUSTIFY">THERMA-WAVE, INC.</P>
</B><P>By:  <U>/s/ Papken Der Torossian</U> &#9;<BR>
Name: Papken Der Torossian<BR>
Title:   Chairman of the Board of Directors</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</TD>
</TR>
<TR><TD VALIGN="TOP">
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>

<U><P ALIGN="JUSTIFY">/s/ Boris Lipkin</U>&#9;<BR>
Boris Lipkin</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</TD>
</TR>
</TABLE>

<P ALIGN="CENTER">&nbsp;</P><P align="right">Exhibit 10.40</p>
<U><P ALIGN="CENTER">AMENDMENT NO. 1 TO <BR>
EMPLOYMENT AGREEMENT</P>
</U><P ALIGN="JUSTIFY">THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (this
"<U>Amendment</U>") is made and entered into as of August 10, 2003, between
Therma-Wave, Inc., a Delaware corporation (the "<U>Company</U>"), and L. Ray
Christie ("<U>Executive</U>") and amends that Employment Agreement, entered into
as of August 10, 1998, between the Company and Executive (the &quot;<U>Original
Agreement</U>&quot;).  All terms used herein but not defined herein shall have
the meanings given them in the Original Agreement.</P>
<P ALIGN="JUSTIFY">WHEREAS, the Company's Board of Directors wishes to amend the
Original Agreement to reward Executive for work well done as the Company's Chief
Financial Officer.</P>
<P ALIGN="JUSTIFY">THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:</P>
<OL>
<DIR>

<OL>

<P ALIGN="JUSTIFY"><LI><A NAME="_Ref27497756"><U>Amendment to Section 1</U>.
The word &quot;fifth&quot; in Section 1 shall be replaced with the word
&quot;eighth&quot;.</LI></P>
<P ALIGN="JUSTIFY"><LI><A NAME="_Ref27476192"><A
NAME="_Ref27561892"></A><U>Amendments to Section 4</U>. </LI></P>
<OL TYPE="a">

<P ALIGN="JUSTIFY"><LI><A NAME="_Ref27501852"></A>The second paragraph of
Section 4(a) and shall be amended and restated as follows:</LI></P>
<P ALIGN="JUSTIFY">&quot;If the Employment Period is terminated by the Company
without Cause, by Executive for Good Reason or as a result of Executive's
Disability, Executive shall be entitled to receive the Base Salary, the Bonus
(which during the Severance Period will be equal to 30% of the Base Salary in
effect immediately prior to the termination) and the Benefits (the "<U>Severance
Payment</U>"), in each case until the date which is six (6) months after the
date of such termination (the "<U>Severance Period</U>"); provided that the
portion of the Bonus that Executive would have been entitled to receive for the
fiscal year in which the Severance Period terminates shall be reduced
proportionately by the ratio of the number of days of such fiscal year not
included in the Severance Period to the total number of days in such fiscal
year.  If the Employment Period is terminated by the Company without Cause or by
Executive for Good Reason at any time within 12 months following a Sale of the
Company (as defined below), Executive shall be entitled to receive the Severance
Payment until the date which is 12 months after the date of such termination
(the "<U>Company Sale Severance Period</U>"); provided, however, that Executive
shall not be entitled to receive any portion of his Bonus for the fiscal year in
which the Company Sale Severance Period terminates.  The Severance Payment will
be payable at such times as such payments would have been payable had Executive
not been terminated. Notwithstanding anything in this Agreement to the contrary,
the Company shall have no obligation to pay any part or all of the Severance
Payment if at any time during the Severance Period or the Company Sale Severance
Period Executive is in breach of Section 6 hereof. If the Employment Period is
terminated for any of the foregoing reasons, the Severance Payment shall be
reduced by fifty percent (50%) of the amount of any compensation Executive
receives in respect of any other employment during the Severance Period or the
Company Sale Severance Period. Upon request from time to time, Executive shall
furnish the Company with a true and complete certificate specifying any such
compensation due to or received by him. As a condition to the Company's
obligations (if any) to make the Severance Payment pursuant to this Section
4(b), Executive will execute and deliver a general release in form and substance
satisfactory to the Company.&quot;</P>
<P ALIGN="JUSTIFY"><LI>The following clause (v) shall be added to the definition
of &quot;Good Reason&quot;:</LI></P></OL>

<P ALIGN="JUSTIFY">&quot;(v) after a Sale of the Company Executive (A) is not
subsequently offered a comparable position to that of Chief Financial Officer
with comparable Base Salary, Bonus and Benefits (a `<U>Comparable Position</U>')
or (B) is offered and accepts a Comparable Position but, within 12 months of the
Sale of the Company, terminates his employment in such Comparable Position for
any of the reasons listed in clauses (i)-(iv) of this paragraph.&quot;</P>

<P ALIGN="JUSTIFY"><LI><U>Amendment to Section 5</U>.  The third sentence in the
first paragraph shall be replaced with the following sentence:  "The vesting of
all of Executive's options (whether granted on the Grant Date or a future date)
shall be accelerated and the options shall become immediately exercisable upon a
Sale of the Company (as defined below)."</LI></P>

<P ALIGN="JUSTIFY"><LI><U>Effect of Amendment</U>.  Except as herein expressly
amended, all terms, covenants and provisions of the Original Agreement are and
shall remain in full force and effect, and all references therein to the
&quot;Agreement&quot; shall henceforth refer to the Original Agreement as
amended by this Amendment.  This Amendment shall be deemed incorporated into,
and a part of, the Original Agreement.</LI></P>

<P ALIGN="JUSTIFY"><LI><U>Complete Agreement</U>.</A>  This Amendment, the
Original Agreement and those documents expressly referred to herein and therein
embody the complete agreement and understanding between the parties and
supersede and preempt any prior understandings, agreements or representations by
or among the parties, written or oral, which may have related to the subject
matter hereof in any way.</LI></P>

<P ALIGN="JUSTIFY"><LI><U>Successors and Assigns</U>.  This Amendment is
intended to bind and inure to the benefit of and be enforceable by Executive and
the Company and their respective heirs, successors and assigns, except that
Executive may not assign his rights or delegate his obligations hereunder
without the prior written consent of the Company.</LI></P>

<P ALIGN="JUSTIFY"><LI><U>Choice of Law</U>.  All issues and questions
concerning the construction, validity, enforcement and interpretation of this
Agreement and the exhibits and schedules hereto shall be governed by, and
construed in accordance with, the laws of the State of California, without
giving effect to any choice of law or conflict of law rules or provisions
(whether of the State of California or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
California.</LI></P>

<P ALIGN="JUSTIFY"><LI><U>Amendment and Waiver</U>.  The provisions of this
Amendment or the Original Agreement may be amended or waived only with the prior
written consent of the Company and Executive, and no course of conduct or
failure or delay in enforcing the provisions of this Agreement shall affect the
validity, binding effect or enforceability of this Amendment or the Original
Agreement.</LI></P></OL>
</DIR>
</OL>

<P ALIGN="JUSTIFY">&#9;The undersigned have executed this Amendment No. 1 to
Employment Agreement as of August 10, 2003.</P>
<P ALIGN="JUSTIFY"></P>
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<TR><TD VALIGN="TOP"><DIR>
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<B><P ALIGN="JUSTIFY">THERMA-WAVE, INC.</P>
</B><P>By: <U>/s/ Papken Der Torossian</U>&#9;<BR>
Name: Papken Der Torossian<BR>
Title: Chairman of the Board of Directors</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</TD>
</TR>
<TR><TD VALIGN="TOP">
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>

<U><P ALIGN="JUSTIFY">/s/ L. Ray Christie</U>&#9;<BR>
L. Ray Christie</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</TD>
</TR>
</TABLE>

<P ALIGN="CENTER">&nbsp;</P>

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