Document:

exv10w2

 

Exhibit 10.2

NOVELLUS SYSTEMS

AMENDED AND RESTATED 1992 EMPLOYEE STOCK PURCHASE PLAN

(amended and restated March 11, 2005)

          The following constitute the provisions of the Amended and Restated 1992 Employee Stock
Purchase Plan of Novellus Systems, Inc.

          1. Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through
accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an
“Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended.
The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation
in a manner consistent with the requirements of that section of the Code.

          2. Definitions.

               (a) “Board” shall mean the Board of Directors of the Company.

               (b) “Code” shall mean the Internal Revenue Code of 1986, as amended.

               (c) “Common Stock” shall mean the Common Stock, no par value, of the Company.

               (d) “Company” shall mean Novellus Systems, Inc., a California corporation.

               (e) “Compensation” shall mean all regular straight time gross earnings, exclusive of
payments for overtime, shift premium, incentive compensation, incentive payments, bonuses,
commissions or other compensation.

               (f) “Continuous Status as an Employee” shall mean the absence of any interruption or
termination of service as an Employee. Continuous Status as an Employee shall not be considered
interrupted in the case of a leave of absence agreed to in writing by the Company, provided that
such leave is for a period of not more than three (3) months or reemployment upon the expiration of
such leave is guaranteed by contract or statute. Where the period of leave exceeds three (3)
months and the individual’s right to reemployment is not guaranteed either by statute or by
contract, the employment relationship will be deemed to have terminated on the first day after such
three (3) month leave, for purposes of determining eligibility to participate in the Plan.

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               (g) “Designated Subsidiaries” shall mean the Subsidiaries which have been designated
by the Board from time to time in its sole discretion as eligible to participate in the Plan.

               (h) “Employee” shall mean any person, including an officer, who is customarily
employed for at least twenty (20) hours per week and more than five (5) months in a calendar year
by the Company or one of its Designated Subsidiaries.

               (i) “Exercise Date” shall mean the last day of each offering period of the Plan.

               (j) “Offering Date” shall mean the first day of each offering period of the Plan.

               (k) “Plan” shall mean this 1992 Employee Stock Purchase Plan, as amended and restated.

               (l) “Subsidiary” shall mean a corporation, domestic or foreign, of which not less than
50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation
now exists or is hereafter organized or acquired by the Company or a Subsidiary.

          3. Eligibility.

               (a) Any person who is an Employee as of the Offering Date of a given offering period shall be
eligible to participate in such offering period under the Plan, subject to the requirements of
paragraph 5(a) and the limitations imposed by Section 423(b) of the Code.

               (b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted
an option under the Plan (i) if, immediately after the grant, such Employee (or any other person
whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own
stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the
total combined voting power or value of all classes of stock of the Company or of any subsidiary of
the Company, or (ii) which permits his rights to purchase stock under all employee stock purchase
plans (described in Section 423 of the Code) of the Company and its subsidiaries to accrue at a
rate which exceeds Twenty-five Thousand dollars ($25,000) of fair market value of such stock
(determined at the time such option is granted) for each calendar year in which such option is
outstanding at any time.

          4. Offering Periods. The Plan shall be implemented by overlapping or consecutive
offering periods of no more than six (6) months duration until the Plan is terminated in accordance
with paragraph 19 hereof. The Board of Directors of the Company shall have the power to change the
duration of offering periods with respect to future offerings without

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shareholder approval if such change is announced at least fifteen (15) days prior to the scheduled beginning of the first
offering period to be affected.

          5. Participation.

               (a) An eligible Employee may become a participant in the Plan by completing a subscription
agreement authorizing payroll deduction on the form provided by the Company and filing it with the
Company’s Human Resource department during the open enrollment period prior to the applicable
Offering Date, unless a later time for filing the subscription agreement is set by the Board for
all eligible Employees with respect to a given offering.

               (b) Payroll deductions for a participant shall commence on the first payroll following the
Offering Date and shall end on the Exercise Date of the offering to which such authorization is
applicable, unless sooner terminated by the participant as provided in paragraph 10.

          6. Payroll Deductions.

               (a) At the time a participant files his subscription agreement, he shall elect to have payroll
deductions made on each payday during the offering period in an amount not exceeding fifteen
percent (15%) of the Compensation which he received on the payday immediately preceding the
Offering Date, and the aggregate of such payroll deductions during the offering period shall not
exceed the lesser of (i) 15% of his aggregate Compensation during said offering period, (ii) $5,000
or (iii) such lesser amount determined by the Board at least fifteen (15) days prior to the
scheduled beginning of the first offering period to be affected.

               (b) All payroll deductions made by a participant shall be credited to his account under the
Plan. A participant may not make any additional payments into such account.

               (c) A participant may discontinue his participation in the Plan as provided in paragraph 10,
or may lower, but not increase, the rate of his payroll deductions during the offering period by
completing or filing with the Company a new authorization for payroll deduction. The change in
rate shall be effective fifteen (15) days following the Company’s receipt of the new authorization.

          7. Grant of Option.

               (a) On the Offering Date of each offering period, each eligible Employee participating in the
Plan shall be granted an option to purchase (at the per share option price determined in accordance
with paragraph 7(b), below) a number of shares of the Company’s Common Stock determined by dividing
such Employee’s payroll deductions to be accumulated during such offering period (not to exceed the
amount determined in accordance with paragraph 6(a), above) by the option price per share
determined in accordance with paragraph 7(b), below,

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subject to the limitations set forth in paragraphs 3(b) and 12 hereof; provided, however, that the maximum number of shares that may be
purchased by any Employee under any offering period is 1,000 shares.

               (b) The option price per share of the shares offered in a given offering period shall be the
lower of: (i) 85% of the fair market value of a share of the Common Stock of the Company on the
Offering Date; or (ii) 85% of the fair market value of a share of the Common Stock of the Company
on the Exercise Date. The fair market value of the Company’s Common Stock on a given date shall be
determined by the Board in its good faith discretion; provided, however, that where there is a
public market for the Common Stock, the fair market value per share shall be the closing bid price
or last sale price of the Common Stock for such date (or, if no closing bid or last sales price was
reported on such date, on the last trading date such closing bid or last sales price was reported),
as reported in the Wall Street Journal (or, if not so reported, as reported in such other
source as the Board deems reliable).

          8. Exercise of Option. Unless a participant withdraws from the Plan as provided in
paragraph 10, his option for the purchase of shares will be exercised automatically on the Exercise
Date of the offering period, and the maximum number of full shares subject to option will be
purchased for him at the applicable option price with the accumulated payroll deductions in his
account. The shares purchased upon exercise of an option hereunder shall be deemed to be
transferred to the participant on the Exercise Date. During his lifetime, a participant’s option
to purchase shares hereunder is exercisable only by him.

          9. Delivery. After the Exercise Date of each offering period, the Company shall
arrange the delivery to each participant, or to a broker designated by the Company, as appropriate,
of the shares purchased upon exercise of his option. Any cash remaining to the credit of a
participant’s account under the Plan after a purchase by him of shares at the termination of each
offering period, or which is insufficient to purchase a full share of Common Stock of the Company,
shall be returned to said participant.

          10. Withdrawal; Termination of Employment.

               (a) A participant may withdraw all but not less than all the payroll deductions credited to
his account under the Plan at any time up to fifteen (15) days prior to the Exercise Date of the
offering period by giving written notice to the Company. All of the participant’s payroll
deductions credited to his account will be paid to him after receipt of his notice of withdrawal
and his option for the current period will be automatically terminated, and no further payroll
deductions for the purchase of shares will be made during the offering period.

               (b) Upon termination of the participant’s Continuous Status as an Employee prior to the
Exercise Date of the offering period for any reason, including retirement or death, the payroll
deductions credited to his account will be returned to him or, in the case of his death, to the
person or persons entitled thereto under paragraph 14, and his option will be automatically
terminated.

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               (c) In the event an Employee fails to remain in Continuous Status as an Employee of the
Company for at least twenty (20) hours per week during the offering period in which the employee is
a participant, he will be deemed to have elected to withdraw from the Plan and the payroll deductions credited to his account will be returned to him and his option
terminated.

               (d) A participant’s withdrawal from an offering will not have any effect upon his eligibility
to participate in a succeeding offering or in any similar plan which may hereafter be adopted by
the Company. If a participant withdraws from an offering, payroll deductions will not resume at
the beginning of a succeeding offering period unless the participant delivers to the Company a new
subscription agreement in accordance with paragraph 5(a).

          11. Interest. No interest shall accrue on the payroll deductions of a participant in
the Plan.

          12. Stock.

               (a) The maximum number of shares of the Company’s Common Stock which shall be made available
for sale under the Plan shall be 5,900,000 shares, subject to adjustment upon changes in
capitalization of the Company as provided in paragraph 18. If the total number of shares which
would otherwise be subject to options granted pursuant to paragraph 7(a) hereof on the Offering
Date of an offering period exceeds the number of shares then available under the Plan (after
deduction of all shares for which options have been exercised or are then outstanding), the Company
shall make a pro rata allocation of the shares remaining available for option grant
in as uniform a manner as shall be practicable and as it shall determine to be equitable. In such
event, the Company shall give written notice of such reduction of the number of shares subject to
the option to each Employee affected thereby and shall similarly reduce the rate of payroll
deductions, if necessary.

               (b) The participant will have no interest or voting right in shares covered by his option
until such option has been exercised.

               (c) Shares to be delivered to a participant under the Plan will be registered in the name of
the participant.

          13. Administration. The Plan shall be administered by the Board of the Company or a
committee of members of the Board appointed by the Board. The administration, interpretation or
application of the Plan by the Board or its committee shall be final, conclusive and binding upon
all participants. Members of the Board who are eligible Employees are permitted to participate in
the Plan, provided that:

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               (a) Members of the Board who are eligible to participate in the Plan may not vote on any
matter affecting the administration of the Plan or the grant of any option pursuant to the Plan.

               (b) If a Committee is established to administer the Plan, no member of the Board who is
eligible to participate in the Plan may be a member of the Committee.

          14. Designation of Beneficiary.

               (a) A participant may file a written designation of a beneficiary who is to receive any shares
and cash, if any, from the participant’s account under the Plan in the event of such participant’s
death subsequent to the end of the offering period but prior to delivery to him of such shares and
cash. In addition, a participant may file a written designation of a beneficiary who is to receive
any cash from the participant’s account under the Plan in the event of such participant’s death
prior to the Exercise Date of the offering period.

               (b) Such designation of beneficiary may be changed by the participant at any time by written
notice. In the event of the death of a participant and in the absence of a beneficiary validly
designated under the Plan who is living at the time of such participant’s death, the Company shall
deliver such shares and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

          15. Transferability. Neither payroll deductions credited to a participant’s account
nor any rights with regard to the exercise of an option or to receive shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution or as provided in paragraph 14 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without effect, except that
the Company may treat such act as an election to withdraw funds in accordance with paragraph 10.

          16. Use of Funds. All payroll deductions received or held by the Company under the
Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated
to segregate such payroll deductions.

          17. Reports. Individual accounts will be maintained for each participant in the Plan.

          18. Adjustments Upon Changes in Capitalization. Subject to any required action by the
shareholders of the Company, the number of shares of Common Stock covered by each option under the
Plan which has not yet been exercised and the number of shares of

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Common Stock which have been authorized for issuance under the Plan but have not yet been placed under option (collectively, the
“Reserves”), as well as the price per share of Common Stock covered by each option under the Plan
which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in
the number of issued shares of Common Stocks resulting from a stock split, reverse stock split,
stock dividend, combination or reclassification of the Common Stock, or any other increase or
decrease in the number of shares of Common Stock effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of the Company shall not
be deemed to have been “effected without receipt of consideration”. Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as expressly provided
herein, no issue by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an option.

          In the event of the proposed dissolution or liquidation of the Company, the offering period
will terminate immediately prior to the consummation of such proposed action, unless otherwise
provided by the Board. In the event of a proposed sale of all or substantially all of the assets
of the Company, or the merger of the Company with or into another corporation, each option under
the Plan shall be assumed by such successor corporation or a parent or subsidiary of such successor
corporation, unless the Board, in the exercise of its sole discretion and in lieu of such
assumption, determines to shorten the offering period then in progress by setting a new Exercise
Date (the “New Exercise Date”). If the Board shortens the offering period then in progress in lieu
of assumption, the Board shall notify each participant in writing at least ten (10) business days
prior to the New Exercise Date, that the Exercise Date for the participant’s option has been
changed to the New Exercise Date and that either:

          (a)the participant’s option will be exercised automatically on the New Exercise Date,
unless prior to such date the participant has withdrawn from the offering period as provided
in Section 10; or

          (b) the Company shall pay to the participant on the New Exercise Date an amount in
cash, cash equivalents, or property as determined by the Board that is equal to the excess,
if any, of (i) the fair market value of the shares subject to the option over (ii) the
aggregate option price had the participant’s option been exercised automatically under part
(a) above. In addition, all remaining accumulated payroll deduction amounts shall be
returned to the participant.

For purposes of this paragraph 18, an option granted under the Plan shall be deemed to be assumed
if the option is replaced with a comparable option with respect to shares of capital stock of the
successor corporation or parent thereof. The determination of option comparability shall be made
by the Board and its determination shall be final, binding and conclusive on all persons.

     The Board may, if it so determines in the exercise of its sole discretion, also make provision
for adjusting the Reserves, as well as the price per share of Common Stock covered by

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each outstanding option, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of shares of its outstanding
Common Stock, and in the event of the Company being consolidated with or merged into any other
corporation.

          19. Amendment or Termination. The Board of Directors of the Company may at any time
terminate or amend the Plan. Except as provided in paragraph 18, no such termination can affect
options previously granted, nor may an amendment make any change in any option theretofore granted
which adversely affects the rights of any participant, nor may an amendment be made without prior approval of the shareholders of the Company (obtained in the manner
described in paragraph 21) if such amendment would:

               (a) Increase the number of shares that may be issued under the Plan;

               (b) Permit payroll deductions at a rate in excess of the lesser of (i) fifteen percent (15%)
of the participant’s Compensation or (ii) $5,000 per offering period;

               (c) Change the designation of the employees (or class of employees) eligible for participation
in the Plan; or

               (d) If the Company has a class of equity securities registered under Section 12 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) at the time of such amendment,
materially increase the benefits which may accrue to participants under the Plan.

          If any amendment requiring shareholder approval under this paragraph 19 of the Plan is made
subsequent to the first registration of any class of equity securities by the Company under Section
12 of the Exchange Act, such shareholder approval shall be solicited as described in paragraph 21
of the Plan.

          20. Notices. All notices or other communications by a participant to the Company
under or in connection with the Plan shall be deemed to have been duly given when received in the
form specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

          21. Shareholder Approval.

               (a) Continuance of the Plan shall be subject to approval by the shareholders of the Company
within twelve (12) months before or after the date the Plan is adopted. If such shareholder
approval is obtained at a duly held shareholders’ meeting, it must be obtained by the affirmative
vote of the holders of a majority of the votes cast at a shareholders’ meeting at which a quorum
representing a majority of all outstanding voting stock is, either in person or by proxy, present
and voting on the Plan; or if such shareholder approval is obtained by written consent, it must be
obtained by the written consent of the holders of a

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majority of the outstanding shares of the Company entitled to vote on the Plan; provided, however, that approval at a meeting or by written
consent may be obtained by a lesser degree of shareholder approval if the Board determines, in its
discretion after consultation with the Company’s legal counsel, that such a lesser degree of
shareholder approval will comply with all applicable laws and will not adversely affect the
qualification of the Plan under Section 423 of the Code.

               (b) If any required approval by the shareholders of the Plan itself or of any amendment
thereto is solicited at any time otherwise than substantially in accordance with Section 14(a) of
the Exchange Act and the rules and regulations promulgated thereunder, then the Company shall, at or prior to the first annual meeting of shareholders held
subsequent to the granting of an option hereunder to an officer or director, do the following:

                    (i) furnish in writing to the holders entitled to vote for the Plan substantially the same
information which would be required (if proxies to be voted with respect to approval or disapproval
of the Plan or amendment were then being solicited) by the rules and regulations in effect under
Section 14(a) of the Exchange Act at the time such information is furnished; and

                    (ii) file with, or mail for filing to, the Securities and Exchange Commission four copies of
the written information referred to in subsection (i) hereof not later than the date on which such
information is first sent or given to shareholders.

          22. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares pursuant
thereto shall comply with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Securities Act of 1934, as amended, the
rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which
the shares may then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

          23. Term of Plan. The Plan shall become effective upon the earlier to occur of its
adoption by the Board of Directors or its approval by the shareholders of the Company as described
in paragraph 21. It shall continue in effect for a term of twenty (20) years unless sooner
terminated under paragraph 19.

          24. Plan History. In May 1992 the Board adopted, and the shareholders approved, the
Plan. In January 1995 the Board adopted, and in May 1995 the shareholders ratified, an amendment
to the Plan to increase the number of shares available for issuance under the Plan from 150,000 to
250,000 shares. In March 1996, the Board approved, and in May 1996 the shareholders ratified, an
amendment to the Plan to increase the number of shares available for issuance thereunder from
250,000 shares to 290,000 shares. In April 1997, the Board approved, and in May 1997 the
shareholders ratified, an amendment to the Plan increasing the number of shares available for
issuance thereunder from 290,000 shares to 350,000 shares. In September

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1997, the Company declared a stock split, thus increasing the number of shares reserved for issuance under the Plan to 700,000
shares. In March 1998, the Board approved, and in May 1998 the shareholders ratified, an amendment
to the Plan increasing the number of shares available for issuance thereunder from 700,000 shares
to 950,000 shares. In February 1999, the Board approved, and in May 1999 the shareholders
ratified, an amendment to the Plan increasing the number of shares available for issuance
thereunder from 950,000 shares to 1,300,000 shares. In December 1999, the Company declared a stock
split, thus increasing the number of shares reserved for issuance under the Plan to 3,900,000
shares. In March 2002, the Board approved, and in May 2002 the shareholders ratified, an amendment
to the Plan increasing the number of shares available for issuance thereunder by 1,000,000 shares
from 3,900,000 shares to 4,900,000 shares. In March 2005, subject to shareholder approval, the
Board approved an amendment to the Plan in order to (a) increase the number of shares available for issuance thereunder by 1,000,000 shares from
4,900,000 shares to 5,900,000 shares and (b) revise various administrative provisions of the Plan
as well as the termination provisions (under paragraph 18 of the Plan) in the event of a sale of
all or substantially all of the assets of the Company or a merger of the Company. The amendment of
the various administrative provisions and paragraph 18 of the Plan, if approved by the
shareholders, shall be effective for offering periods beginning on or after May 1, 2005.

10exv10w3

 

Exhibit 10.3

NOVELLUS SYSTEMS, INC. 2001 STOCK INCENTIVE PLAN

NOTICE OF RESTRICTED STOCK BONUS AWARD

	 	 	 	 	 
	 

	 	Grantee’s Name and Address:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 

     You (the “Grantee”) have been granted shares of Common Stock of the Company (the “Award”),
subject to the terms and conditions of this Notice of Restricted Stock Bonus Award (the “Notice”),
the Novellus Systems, Inc. 2001 Stock Incentive Plan, as amended from time to time (the “Plan”) and
the Restricted Stock Bonus Award Agreement (the “Agreement”) attached hereto, as follows. Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in
this Notice.

	 	 	 	 	 	 	 	 	 
	

	 	Award Number	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	Date of Award	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	Total Number of Shares	 	 	 	 	 	 
	

	 	of Common Stock Awarded
	 	 	5,000	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	Aggregate Fair Market	 	 	 	 	 	 
	

	 	Value of the Shares
	 	 	$	 	 	 
	

	 	 	 	 	 	 	 	 

Vesting Schedule:

     Subject to the Grantee’s Continuous Service and other limitations set forth in this Notice,
the Agreement and the Plan, the Shares will “vest” in accordance with the following schedule:

One-third of the Shares shall vest on each yearly anniversary of the Date of Award
such that the Shares will be fully vested three (3) years after the Date of Award.

     In the event of a Corporate Transaction, 100% of the Shares shall become vested immediately
prior to the effective date of such Corporate Transaction.

     For purposes of this Notice and the Agreement, the term “vest” shall mean, with respect to any
Shares, that such Shares are no longer subject to forfeiture to the Company. Shares that have not
vested are deemed “Restricted Shares.” If the Grantee would become vested in a fraction of a
Restricted Share, such Restricted Share shall not vest until the Grantee becomes vested in the
entire Share.

     Vesting shall cease upon the date of termination of the Grantee’s Continuous Service for any
reason, including death or Disability. In the event the Grantee’s Continuous Service is terminated
for any reason, including death or Disability, any Restricted Shares held by the Grantee
immediately following such termination of Continuous Service shall be deemed reconveyed to the
Company and the Company shall thereafter be the legal and beneficial owner

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of the Restricted Shares and shall have all rights and interest in or related thereto without
further action by the Grantee. The foregoing forfeiture provisions set forth in this Notice as to
Restricted Shares shall apply to the new capital stock or other property (including cash paid other
than as a regular cash dividend) received in exchange for the Shares in consummation of any
transaction described in Section 10 of the Plan and such stock or property shall be deemed
Additional Securities (as defined in the Agreement) for purposes of the Agreement, but only to the
extent the Shares are at the time covered by such forfeiture provisions.

     IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the
Award is to be governed by the terms and conditions of this Notice, the Plan, and the Agreement.

	 	 	 	 	 
	 	 	Novellus Systems, Inc.,
	 	 	a California corporation
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	 

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL,
ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE.

     The Grantee acknowledges receipt of a copy of the Plan and the Agreement and represents that
he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject
to all of the terms and provisions hereof and thereof. The Grantee has reviewed this Notice, the
Agreement and the Plan in their entirety, has had an opportunity to obtain the advice of counsel
prior to executing this Notice and fully understands all provisions of this Notice, the Agreement
and the Plan. The Grantee hereby agrees that all questions of interpretation and administration
relating to this Notice, the Plan and the Agreement shall be resolved by the Administrator in
accordance with Section 12 of the Agreement. The Grantee further agrees to the venue selection and
waiver of a jury trial in accordance with Section 13 of the Agreement. The Grantee further agrees
to notify the Company upon any change in the residence address indicated in this Notice.

	 	 	 	 	 	 	 
	Dated:

	 	 	 	Signed:	 	 
	

	 	 	 	 	 	 

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Award Number:                                         

NOVELLUS SYSTEMS, INC. 2001 STOCK INCENTIVE PLAN

RESTRICTED STOCK BONUS AWARD AGREEMENT

     1. Issuance of Shares. Novellus Systems, Inc., a California corporation (the
“Company”), hereby issues to the Grantee (the “Grantee”) named in the Notice of Restricted Stock
Bonus Award (the “Notice”), the Total Number of Shares of Common Stock Awarded set forth in the
Notice (the “Shares”), subject to the Notice, this Restricted Stock Bonus Award Agreement (the
“Agreement”) and the terms and provisions of the Company’s 2001 Stock Incentive Plan, as amended
from time to time (the “Plan”), which is incorporated herein by reference. Unless otherwise
defined herein, the terms defined in the Plan shall have the same defined meanings in this
Agreement. All Shares issued hereunder will be deemed issued to the Grantee as fully paid and
nonassessable shares, and the Grantee will have the right to vote the Shares at meetings of the
Company’s shareholders. The Company shall pay any applicable stock transfer taxes imposed upon the
issuance of the Shares to the Grantee hereunder.

     2. Transfer Restrictions. The Shares issued to the Grantee hereunder may not be sold,
transferred by gift, pledged, hypothecated, or otherwise transferred or disposed of by the Grantee
prior to the date when the Shares become vested pursuant to the Vesting Schedule set forth in the
Notice. Any attempt to transfer Restricted Shares in violation of this Section 2 will be null and
void and will be disregarded.

     3. Escrow of Stock. For purposes of facilitating the enforcement of the provisions of
this Agreement and the payment of withholding taxes (if any) pursuant to Section 5 of this
Agreement, the Grantee agrees, immediately upon receipt of the certificate(s) for the Restricted
Shares, to deliver such certificate(s), together with an Assignment Separate from Certificate in
the form attached hereto as Exhibit A, executed in blank by the Grantee with respect to
each such stock certificate, to the Secretary or Assistant Secretary of the Company, or their
designee, to hold in escrow for so long as such Restricted Shares have not vested pursuant to the
Vesting Schedule set forth in the Notice, with the authority to take all such actions and to
effectuate all such transfers and/or releases as may be necessary or appropriate to accomplish the
objectives of this Agreement in accordance with the terms hereof. The Grantee hereby acknowledges
that the appointment of the Secretary or Assistant Secretary of the Company (or their designee) as
the escrow holder hereunder with the stated authorities is a material inducement to the Company to
make this Agreement and that such appointment is coupled with an interest and is accordingly
irrevocable. The Grantee agrees that such escrow holder shall not be liable to any party hereto
(or to any other party) for any actions or omissions unless such escrow holder is grossly negligent
relative thereto. The escrow holder may rely upon any letter, notice or other document executed by
any signature purported to be genuine and may resign at any time. Upon the vesting of the
Restricted Shares, the escrow holder will, without further order or instruction, transmit to the
Grantee the certificate evidencing such Shares, subject, however, to satisfaction of any
withholding obligations provided in Section 5 below.

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     4. Distributions. The Company shall disburse to the Grantee all regular cash
dividends with respect to the Shares and Additional Securities (whether vested or not), less any
applicable withholding obligations.

     5. Withholding of Taxes.

          (a) General. The Grantee is ultimately liable and responsible for all taxes owed by
the Grantee in connection with the Award, regardless of any action the Company or any Related
Entity takes with respect to any tax withholding obligations that arise in connection with the
Award. Neither the Company nor any Related Entity makes any representation or undertaking
regarding the treatment of any tax withholding in connection with the grant or vesting of the Award
or the subsequent sale of Shares subject to the Award. The Company and its Related Entities do not
commit and are under no obligation to structure the Award to reduce or eliminate the Grantee’s tax
liability.

          (b) Payment of Withholding Taxes. Prior to any event in connection with the Award
(e.g., vesting) that the Company determines may result in any tax withholding obligation, whether
United States federal, state, local or non-U.S., including any employment tax obligation (the “Tax
Withholding Obligation”), the Grantee must arrange for the satisfaction of the minimum amount of
such Tax Withholding Obligation in a manner acceptable to the Company.

               (i) By Share Withholding. To the extent the vesting of any Shares occurs during a “blackout
period” of the Company wherein certain Employees are precluded from selling Shares and unless the
Grantee determines to satisfy the Tax Withholding Obligation by some other means in accordance with
clause (iii) below, the Grantee authorizes the Company to withhold from those Shares issuable to
the Grantee the whole number of Shares sufficient to satisfy the minimum applicable Tax Withholding
Obligation. The Grantee acknowledges that the withheld Shares may not be sufficient to satisfy the
Grantee’s minimum Tax Withholding Obligation. Accordingly, the Grantee agrees to pay to the
Company or any Related Entity as soon as practicable, including through additional payroll
withholding, any amount of the Tax Withholding Obligation that is not satisfied by the withholding
of Shares described above.

               (ii) By Sale of Shares. Unless the Grantee determines to satisfy the Tax Withholding
Obligation by some other means in accordance with clause (iii) below, the Grantee’s acceptance of
this Award constitutes the Grantee’s instruction and authorization to the Company and any brokerage
firm determined acceptable to the Company for such purpose to sell on the Grantee’s behalf a whole
number of Shares from those Shares issuable to the Grantee as the Company determines to be
appropriate to generate cash proceeds sufficient to satisfy the minimum applicable Tax Withholding
Obligation. Such Shares will be sold on the day such Tax Withholding Obligation arises (e.g., a
vesting date) or as soon thereafter as practicable. The Grantee will be responsible for all
broker’s fees and other costs of sale, and the Grantee agrees to indemnify and hold the Company
harmless from any losses, costs, damages, or expenses relating to any such sale. To the extent the
proceeds of such sale exceed the Grantee’s minimum Tax Withholding Obligation, the Company agrees
to pay such excess in cash to the Grantee. The Grantee acknowledges that the Company or its
designee is under no obligation to arrange for such sale at any particular price, and that the
proceeds of any such sale may not be sufficient to satisfy the Grantee’s minimum Tax Withholding
Obligation. Accordingly, the Grantee agrees to

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pay to the Company or any Related Entity as soon as practicable, including through additional
payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the sale
of Shares described above.

               (iii) By Check, Wire Transfer or Other Means. At any time not less than five (5) business days
before any Tax Withholding Obligation arises (e.g., a vesting date), the Grantee may elect to
satisfy the Grantee’s Tax Withholding Obligation by delivering to the Company an amount that the
Company determines is sufficient to satisfy the Tax Withholding Obligation by (x) wire transfer to
such account as the Company may direct, (y) delivery of a certified check payable to the Company,
or (z) such other means as specified from time to time by the Administrator.

     6. Additional Securities. Any securities or cash received (other than a regular cash
dividend) as the result of ownership of the Restricted Shares (the “Additional Securities”),
including, but not by way of limitation, warrants, options and securities received as a stock
dividend or stock split, or as a result of a recapitalization or reorganization or other similar
change in the Company’s capital structure, shall be retained in escrow in the same manner and
subject to the same conditions and restrictions as the Restricted Shares with respect to which they
were issued, including, without limitation, the Vesting Schedule set forth in the Notice. The
Grantee shall be entitled to direct the Company to exercise any warrant or option received as
Additional Securities upon supplying the funds necessary to do so, in which event the securities so
purchased shall constitute Additional Securities, but the Grantee may not direct the Company to
sell any such warrant or option. If Additional Securities consist of a convertible security, the
Grantee may exercise any conversion right, and any securities so acquired shall constitute
Additional Securities. In the event of any change in certificates evidencing the Shares or the
Additional Securities by reason of any recapitalization, reorganization or other transaction that
results in the creation of Additional Securities, the escrow holder is authorized to deliver to the
issuer the certificates evidencing the Shares or the Additional Securities in exchange for the
certificates of the replacement securities.

     7. Stop-Transfer Notices. In order to ensure compliance with the restrictions on
transfer set forth in this Agreement, the Notice or the Plan, the Company may issue appropriate
“stop transfer” instructions to its transfer agent, if any, and, if the Company transfers its own
securities, it may make appropriate notations to the same effect in its own records.

     8. Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay
dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.

     9. Restrictive Legends. The Grantee understands and agrees that the Company shall
cause the legends set forth below or legends substantially equivalent thereto, to be placed upon
any certificate(s) evidencing ownership of the Shares together with any other legends that may be
required by the Company or by state or federal securities laws:

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THE SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED BY THE
TERMS OF THAT CERTAIN RESTRICTED STOCK BONUS AWARD AGREEMENT BETWEEN
THE COMPANY AND THE NAMED SHAREHOLDER. THE SHARES REPRESENTED BY
THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH SUCH
AGREEMENT, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
COMPANY.

     10. Entire Agreement: Governing Law. The Notice, the Plan and this Agreement
constitute the entire agreement of the parties with respect to the subject matter hereof and
supersede in their entirety all prior undertakings and agreements of the Company and the Grantee
with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s
interest except by means of a writing signed by the Company and the Grantee. These agreements are
to be construed in accordance with and governed by the internal laws of the State of California
without giving effect to any choice of law rule that would cause the application of the laws of any
jurisdiction other than the internal laws of the State of California to the rights and duties of
the parties. Should any provision of the Notice or this Agreement be determined to be illegal or
unenforceable, the other provisions shall nevertheless remain effective and shall remain
enforceable.

     11. Headings. The captions used in this Agreement are inserted for convenience and
shall not be deemed a part of this Agreement for construction or interpretation.

     12. Administration and Interpretation. Any question or dispute regarding the
administration or interpretation of the Notice, the Plan or this Agreement shall be submitted by
the Grantee or by the Company to the Administrator. The resolution of such question or dispute by
the Administrator shall be final and binding on all persons.

     13. Venue and Waiver of Jury Trial. The parties agree that any suit, action, or
proceeding arising out of or relating to the Notice, the Plan or this Agreement shall be brought in
the United States District Court for the Northern District of California (or should such court lack
jurisdiction to hear such action, suit or proceeding, in a California state court in the County of
San Mateo) and that the parties shall submit to the jurisdiction of such court. The parties
irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the
laying of venue for any such suit, action or proceeding brought in such court. THE PARTIES ALSO
EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR
PROCEEDING. If any one or more provisions of this Section 13 shall for any reason be held invalid
or unenforceable, it is the specific intent of the parties that such provisions shall be modified
to the minimum extent necessary to make it or its application valid and enforceable.

     14. Notices. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery, upon deposit for delivery by an
internationally recognized express mail courier service or upon deposit in the United States mail
by certified mail (if the parties are within the United States), with postage and fees prepaid,

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addressed to the other party at its address as shown in these instruments, or to such other
address as such party may designate in writing from time to time to the other party.

END OF AGREEMENT

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EXHIBIT A

STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE

[Please sign this document but do not date it. The date and information of the transferee
will be completed if and when the shares are assigned.]

     FOR VALUE RECEIVED,                                      hereby sells, assigns and
transfers unto                                             , five thousand (5,000) shares of the Common Stock of
Novellus Systems, Inc., a California Company (the “Company”), standing in his name on the
books of, the Company represented by Certificate No.
herewith, and does hereby irrevocably constitute and appoint the Secretary
of the Company attorney to transfer the said stock in the books of the Company with full
power of substitution.

DATED:                              

	 	 	 
	
	 	 

1

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